Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 02, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
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, 13 Hartom Street | |
Entity Address, Address Line Two | P.O. Box 45157 | |
Entity Address, City or Town | Jerusalem | |
Entity Address, Country | IL | |
Entity Address, Postal Zip Code | 9777513 | |
City Area Code | 972 | |
Local Phone Number | 2-541-7333 | |
Title of 12(b) Security | Class A common stock, par value $0.01 | |
Trading Symbol | MBLY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 94,647,954 | |
Entity Central Index Key | 0001910139 | |
Current Fiscal Year End Date | --12-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 1,193 | $ 1,024 | |
Trade accounts receivable, net | 281 | 269 | |
Inventories | 354 | 113 | |
Other current assets | 80 | 110 | |
Total current assets | 1,908 | 1,516 | |
Non-current assets | |||
Property and equipment, net | 426 | 384 | |
Intangible assets, net | 2,165 | 2,527 | |
Goodwill | 10,895 | 10,895 | |
Other long-term assets | 111 | 119 | |
Total non-current assets | 13,597 | 13,925 | |
TOTAL ASSETS | 15,505 | 15,441 | |
Current liabilities | |||
Accounts payable and accrued expenses | 221 | 189 | |
Employee related accrued expenses | 79 | 88 | |
Related party payable | 44 | 73 | |
Other current liabilities | 47 | 34 | |
Total current liabilities | 391 | 384 | |
Non-current liabilities | |||
Long-term employee benefits | 53 | 56 | |
Deferred tax liabilities | 149 | 162 | |
Other long-term liabilities | 39 | 45 | |
Total non-current liabilities | 241 | 263 | |
TOTAL LIABILITIES | 632 | 647 | |
Equity | |||
Additional paid-in capital | 14,898 | 14,737 | |
Accumulated other comprehensive income (loss) | (9) | ||
Retained earnings (accumulated deficit) | (33) | 57 | |
TOTAL EQUITY | [1] | 14,873 | 14,794 |
TOTAL LIABILITIES AND EQUITY | 15,505 | 15,441 | |
Class A common stock | |||
Equity | |||
Common stock | 1 | 1 | |
Class B common stock | |||
Equity | |||
Common stock | $ 7 | $ 8 | |
[1]Rounding of Class A and Class B share amounts due to Secondary offering. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Common stock, par value | $ 0.01 | |
Common stock, shares issued | 100,000,000 | |
Common stock, shares outstanding | 100,000,000 | |
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 | 94,164,300 | 51,911,905 |
Common stock, shares outstanding | 94,164,300 | 51,911,905 |
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 | 750,000,000 |
Common stock, shares outstanding | 711,500,000 | 750,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | |||||||
Revenue | $ 530 | $ 450 | $ 1,442 | $ 1,304 | |||
Cost of revenue | 258 | 233 | 739 | 682 | |||
Gross profit | 272 | 217 | 703 | 622 | |||
Research and development, net | 218 | 206 | 664 | 565 | |||
Sales and marketing | 28 | 27 | 90 | 91 | |||
General and administrative | 18 | 9 | 55 | 27 | |||
Total operating expenses | 264 | 242 | 809 | 683 | |||
Operating income (loss) | 8 | (25) | (106) | (61) | |||
Interest income with related party | 5 | 9 | |||||
Interest expense with related party | (11) | (20) | |||||
Other financial income (expense), net | 15 | 1 | 38 | 6 | |||
Income (loss) before income taxes | 23 | (30) | (68) | (66) | |||
Benefit (provision) for income taxes | (6) | (15) | (22) | (46) | |||
Net income (loss) | $ 17 | [1] | $ (45) | [1] | $ (90) | [1] | $ (112) |
Earnings (loss) per share attributed to Class A and Class B stockholders: | |||||||
Basic | $ 0.02 | $ (0.06) | $ (0.11) | $ (0.15) | |||
Diluted | $ 0.02 | $ (0.06) | $ (0.11) | $ (0.15) | |||
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 | 750 | 804 | 750 | |||
Diluted | 810 | 750 | 804 | 750 | |||
Other comprehensive income (loss), net of tax | $ 6 | $ 9 | $ (23) | ||||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 17 | $ (39) | $ (81) | $ (135) | |||
[1]Rounding of Class A and Class B share amounts due to Secondary offering. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) shares in Millions | Common Stock | Additional paid-in capital | Parent Net Investment | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated deficit) | Total | [1] | |
Beginning balance at Dec. 25, 2021 | $ 0 | [1] | $ 0 | $ 15,884,000,000 | $ 5,000,000 | $ 0 | $ 15,889,000,000 | |
Net income (loss) | 0 | [1] | 0 | (112,000,000) | 0 | 0 | (112,000,000) | |
Tax sharing agreement with Parent | 0 | [1] | 0 | (16,000,000) | 0 | 0 | (16,000,000) | |
Other comprehensive income (loss), net | 0 | [1] | 0 | 0 | (23,000,000) | 0 | (23,000,000) | |
Equity transaction in connection with the legal purchase of Moovit entities | 0 | [1] | 0 | (900,000,000) | 0 | 0 | (900,000,000) | |
Dividend Note with related party | 0 | [1] | 0 | (3,500,000,000) | 0 | 0 | (3,500,000,000) | |
Dividend distribution | 0 | [1] | 0 | (336,000,000) | 0 | 0 | (336,000,000) | |
Net transfer from (to) Parent | $ 0 | [1] | 0 | 158,000,000 | 0 | 0 | 158,000,000 | |
Ending balance (in shares) at Oct. 01, 2022 | 0 | |||||||
Ending balance at Oct. 01, 2022 | $ 0 | [1] | 0 | 11,178,000,000 | (18,000,000) | 0 | 11,160,000,000 | |
Beginning balance at Jul. 02, 2022 | 0 | [1] | 0 | 11,223,000,000 | (24,000,000) | 0 | 11,199,000,000 | |
Net income (loss) | 0 | [1] | 0 | (45,000,000) | 0 | 0 | (45,000,000) | |
Tax sharing agreement with Parent | 0 | [1] | 0 | (9,000,000) | 0 | 0 | (9,000,000) | |
Other comprehensive income (loss), net | 0 | [1] | 0 | 0 | 6,000,000 | 0 | 6,000,000 | |
Net transfer from (to) Parent | $ 0 | [1] | 0 | 9,000,000 | 0 | 0 | 9,000,000 | |
Ending balance (in shares) at Oct. 01, 2022 | 0 | |||||||
Ending balance at Oct. 01, 2022 | $ 0 | [1] | 0 | 11,178,000,000 | (18,000,000) | 0 | 11,160,000,000 | |
Beginning balance (in shares) at Dec. 31, 2022 | 802 | |||||||
Beginning balance at Dec. 31, 2022 | $ 9,000,000 | [1] | 14,737,000,000 | 0 | (9,000,000) | 57,000,000 | 14,794,000,000 | |
Net income (loss) | 0 | [1] | 0 | 0 | 0 | (90,000,000) | (90,000,000) | |
Share-based compensation expense | 0 | [1] | 190,000,000 | 0 | 0 | 0 | 190,000,000 | |
Recharge to Parent for Share-based compensation | 0 | [1] | (29,000,000) | 0 | 0 | 0 | (29,000,000) | |
Issuance of common stock under employee share-based compensation plans | $ 0 | [1] | 0 | 0 | 0 | 0 | 0 | |
Issuance of common stock under employee share-based compensation plans (Shares) | 4 | |||||||
Secondary offering | 0 | 0 | 0 | 0 | ||||
Other comprehensive income (loss), net | $ 0 | [1] | 0 | 0 | 9,000,000 | 0 | 9,000,000 | |
Ending balance (in shares) at Sep. 30, 2023 | 806 | |||||||
Ending balance at Sep. 30, 2023 | $ 8,000,000 | [1] | 14,898,000,000 | 0 | 0 | (33,000,000) | 14,873,000,000 | |
Beginning balance (in shares) at Jul. 01, 2023 | 806 | |||||||
Beginning balance at Jul. 01, 2023 | $ 8,000,000 | [1] | 14,842,000,000 | 0 | 0 | (50,000,000) | 14,800,000,000 | |
Net income (loss) | 0 | [1] | 0 | 0 | 0 | 17,000,000 | 17,000,000 | |
Share-based compensation expense | 0 | [1] | 63,000,000 | 0 | 0 | 0 | 63,000,000 | |
Recharge to Parent for Share-based compensation | $ 0 | [1] | (7,000,000) | 0 | 0 | 0 | (7,000,000) | |
Ending balance (in shares) at Sep. 30, 2023 | 806 | |||||||
Ending balance at Sep. 30, 2023 | $ 8,000,000 | [1] | $ 14,898,000,000 | $ 0 | $ 0 | $ (33,000,000) | $ 14,873,000,000 | |
[1]Rounding of Class A and Class B share amounts due to Secondary offering. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Oct. 01, 2022 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income (loss) | $ (45) | [1] | $ (90) | [1] | $ (112) | [1] | $ (112) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation of property and equipment | 7 | 24 | 17 | ||||
Share-based compensation | 190 | 112 | |||||
Amortization of intangible assets | 131 | 362 | 413 | ||||
Exchange rate differences on cash and cash equivalents | 9 | 6 | |||||
Deferred income taxes | (13) | (8) | |||||
Interest on Dividend Note to related party, net | 20 | ||||||
Interest with related party, net | 16 | 20 | |||||
Other | (1) | (3) | |||||
Changes in operating assets and liabilities: | |||||||
Decrease (increase) in trade accounts receivable | 6 | (67) | |||||
Decrease (increase) in other current assets | 16 | 28 | |||||
Decrease (increase) in inventories | (241) | (8) | |||||
Increase (decrease) in accounts payable, accrued expenses and related party payable | 21 | 22 | |||||
Increase (decrease) in employee-related accrued expenses and long term benefits | (12) | (67) | |||||
Increase (decrease) in other current liabilities | (5) | 10 | |||||
Decrease (increase) in other long term assets | 3 | 15 | |||||
Increase (decrease) in long term liabilities | (3) | ||||||
Net cash provided by operating activities | 285 | 395 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchase of property and equipment | (75) | (79) | |||||
Repayment of loan due from related party | 734 | ||||||
Issuance of loan to related party | (336) | ||||||
Net cash provided by (used in) investing activities | (75) | 319 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Net transfers from Parent | 99 | ||||||
Dividend paid | (336) | ||||||
Share-based compensation recharge | (29) | (200) | |||||
Deferred offering costs | (14) | ||||||
Net cash provided by (used in) financing activities | (29) | (451) | |||||
Effect of foreign exchange rate changes on cash and cash equivalents | (9) | (6) | |||||
Increase in cash, cash equivalents and restricted cash | 172 | 257 | |||||
Balance of cash, cash equivalents and restricted cash, at beginning of year | 1,035 | ||||||
Balance of cash, cash equivalents and restricted cash, at end of period | 882 | 1,207 | 882 | 882 | |||
Supplementary non-cash investing and financing activities: | |||||||
Non-cash purchase of property and equipment | 5 | 9 | |||||
Non-cash share based compensation recharge | 9 | ||||||
Equity transaction in connection with the legal purchase of Moovit entities | 900 | ||||||
Dividend Note with related party | 3,500 | [1] | 3,500 | ||||
Non cash deferred offering costs | $ 1 | $ 1 | 1 | ||||
Tax sharing agreement with Parent | 16 | ||||||
Supplemental cash flow information: | |||||||
Cash received (paid) for income taxes, net of refunds | (45) | (40) | |||||
Interest received from related party | $ 16 | $ 29 | |||||
[1]Rounding of Class A and Class B share amounts due to Secondary offering. |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2023 | |
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. Mobileye combines the operations of its consolidated subsidiaries, which include the Mobileye Group, as defined below. Mobileye operates as a subsidiary of Intel Corporation (“Intel” or the “Parent”), which acquired a majority stake in Mobileye in August 2017 (the “Mobileye Acquisition”). The remaining issued and outstanding shares of Mobileye were acquired by Intel in 2018. Before the completion of the Mobileye IPO and the Reorganization (both as defined below) in October 2022, the Company consisted of the “Mobileye Group”, which combined the operations of Cyclops Holdings LLC (“Cyclops”), Mobileye B.V. and its subsidiaries, GG Acquisition Ltd. and Moovit App Global Ltd. and its subsidiaries (“Moovit”) and certain Intel employees mainly in research and development (the “Intel Aligned Groups”). The Mobileye IPO In December 2021, Intel announced plans to pursue an initial public offering of the Mobileye Group. In January 2022, Intel incorporated a new legal entity, Mobileye Global Inc., with the intent to contribute the Mobileye Group to Mobileye Global Inc. and to have Mobileye Global Inc. offer newly issued shares of common stock of Mobileye Global Inc. in an initial public offering. On October 28, 2022, the initial public offering of Mobileye (the “Mobileye IPO”) was completed and we issued 41,000,000 shares of our Class A common stock, at $21 per share, before underwriting discounts and commissions. Concurrently with the closing of the Mobileye IPO, the Company issued an additional 4,761,905 shares of its Class A common stock to General Atlantic (ME), L.P., a Delaware limited partnership, at $21 per share, pursuant to a private placement exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, for gross proceeds of $100 million (the “Concurrent Private Placement”). On November 1, 2022, we closed the sale of an additional 6,150,000 Class A shares pursuant to the exercise of the underwriters’ over-allotment option. The Mobileye IPO generated proceeds to the Company of approximately $1.0 billion, including the proceeds from the underwriters exercise of their option and the Concurrent Private Placement, net of underwriting discounts and commissions in the amount of $41 million and offering costs in the amount of $18 million. Prior to the completion of the Mobileye IPO, we were a wholly-owned business of Intel Corporation. Upon the closing of the Mobileye IPO (after giving effect to the exercise of the underwriters’ over-allotment option), Intel continues to directly or indirectly hold all of the Class B common stock of Mobileye. Upon completion of the Mobileye IPO, we completed the legal entity reorganization (“Reorganization”) of the operations comprising the Mobileye Group business so that they are all under the single parent entity, Mobileye Global Inc., and the filing and effectiveness of our amended and restated certificate of incorporation. The Reorganization was accomplished through a series of transactions and agreements with Intel, including the legal purchase of 100% of the issued and outstanding equity interests of the Moovit entities from Intel. Secondary Offering On June 7, 2023, the Company announced the pricing of a public secondary offering of 38,500,000 shares of its Class A common stock (which shares were received upon the conversion of 38,500,000 shares of Class B common stock into Class A common stock) by Intel at a public offering price of $42.00 per share, which closed on June 12, 2023 (the “Secondary Offering”). The Company did not receive any proceeds from this offering. The Company paid the costs associated with the registration of shares in connection with the Secondary Offering in the amount of $1 million, other than underwriting discounts, fees and commissions. These costs were expensed as incurred within general and administrative expenses. Upon the completion of the Secondary Offering, Intel continues to directly or indirectly hold all of the Class B common stock of Mobileye, which represents approximately 88.3% of our outstanding common stock and 98.7% of the voting power of our common stock. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
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 2022 was a 53-week fiscal year; fiscal year 2023 is a 52-week fiscal year. The additional week in fiscal year 2022 was added in the first quarter, which consisted of 14 weeks. The results of operations for the three and nine months ended September 30, 2023 shown in this report are not necessarily indicative of the results to be expected for the full year ending 2023. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 31, 2022. The financial statements and accompanying notes that include periods ending or as of dates prior to the completion of the Mobileye IPO have been derived from the consolidated financial statements and accounting records of Intel and are presented as if the Company had been operating as a stand-alone company. The assets, liabilities, revenue, and expenses directly attributable to the Company’s operations, including the acquired goodwill and intangible assets, have been reflected in these condensed consolidated financial statements on a historical cost basis, as included in the consolidated financial statements of Intel. As Mobileye Group was not historically held by a single legal entity, total parent net investment is shown in lieu of equity in the periods prior to the completion of the Mobileye IPO and represents Intel’s total interest in the recorded net assets of Mobileye Group. All intercompany transactions within the previously combined businesses of the Company have been eliminated. Transactions between the Company and Intel, arising from arrangements with Intel and other similar related-party transactions, were considered to be effectively settled at the time the transactions were recorded, unless otherwise noted. The total net effect of the settlement of these transactions was reflected within parent net investment as a component of equity and within net transfers from Parent as a financing activity in the periods prior to the completion of the Mobileye IPO, unless otherwise noted. Following the completion of the Mobileye IPO, the condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the fiscal year ended December 31, 2022. For further detail, see Note 2 in the audited consolidated financial statements for the fiscal year ended December 31, 2022. 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 goodwill and income taxes. Cash, cash equivalents and restricted cash The following is a reconciliation of the cash, cash equivalents and restricted cash as of each period end: As of U.S. dollars in millions September 30, 2023 December 31, 2022 Cash $ 60 $ 188 Short term deposits 115 285 Money market funds 1,018 551 Restricted cash (within other current and other long-term assets) 14 11 Cash, cash equivalents and restricted cash $ 1,207 $ 1,035 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 and consists of financial assets for which quoted prices are available in an active market. Interest income related to money market funds for the three and nine months ended September 30, 2023 amounted to $15 million and $35 million, respectively. 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 $24 million and $15 million were offset against research and development costs in the three months ended September 30, 2023 and October 1, 2022, respectively; and $57 million and $40 million were offset in the nine months ended September 30, 2023 and October 1, 2022, respectively. Derivatives and hedging Beginning in 2021, as part of Intel’s corporate hedging program, Intel hedges forecasted cash flows denominated in Israel 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. 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. As of September 30, 2023, there are no outstanding hedging instruments and all of the related accumulated other comprehensive income (loss) was reclassified into the statement of operations and comprehensive income (loss). The notional amount and fair value of derivatives outstanding at Intel on behalf of Mobileye were: As of U.S. dollars in millions September 30, 2023 December 31, 2022 Notional amount of derivatives $ — $ 93 Fair value of derivatives receivable from (payable to) Intel $ — $ (9) The change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging was as follows: Three Months Ended Nine Months Ended U.S. dollars in millions September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Other comprehensive income (loss) before reclassifications $ — $ 1 $ — $ (30) Amounts reclassified out of accumulated other comprehensive income (loss) — 6 10 6 Tax effects — (1) (1) 1 Other comprehensive income (loss), net $ — $ 6 $ 9 $ (23) 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 expense 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. 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. Loss contingencies Management believes that there are no current matters that would have a material effect on the Company’s condensed consolidated balance sheets, statements of operations or cash flows. Legal fees are expensed as incurred. 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 and money market funds, 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 investors money market funds and are readily redeemable to cash. Accordingly, management believes that these bank deposits and money market funds, 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 establishes credit losses for accounts receivable by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history from such customers, and the customers’ current ability to pay its obligation to the Company. As of September 30, 2023 and December 31, 2022, the credit losses for accounts receivable were not material. The Company writes off accounts receivable when they are deemed uncollectible. For the three and nine months ended September 30, 2023 and October 1, 2022, the charge-offs and recoveries in relation to the credit losses accounts 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 2022 and may experience in the future, including in ECUs for SuperVision™ and other components for our products. Supply chain risk During the fiscal year ended December 31, 2022, due to global supply chain constraints and shortage of semiconductors, the Company’s sole supplier was not able to meet demand of the Company for EyeQ® SoCs, causing a significant reduction in the Company’s inventory levels. We may experience a shortfall of EyeQ® SoCs, ECUs for SuperVision™ and other components for our products. The reoccurrence of shortages and supply chain constraints in EyeQ® SoCs and ECUs for SuperVision™ and in components of our other products, may impair the Company’s ability to meet its customers’ requirements in a timely manner and may adversely affect the Company’s business, results of operations and financial condition. Moreover, to the extent that a global semiconductor shortage results in reduced production or production delays by automakers, those delays could result in reduced or delayed demand for the Company’s products. In addition, issues relating to the COVID-19 pandemic led to port congestion and intermittent supplier shutdowns and delays in the delivery of critical components, which resulted in additional expenses to expedite delivery of critical parts. Sustaining the Company’s production trajectory requires the readiness and solvency of its suppliers and vendors, a stable and motivated production workforce and ongoing government cooperation, including for travel and visa allowances, which governments may restrict. 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 short-term supply chain constraints would materially adversely affect our results of operations, capital resources, sales, profits, and liquidity. |
OTHER FINANCIAL STATEMENT DETAI
OTHER FINANCIAL STATEMENT DETAILS | 9 Months Ended |
Sep. 30, 2023 | |
OTHER FINANCIAL STATEMENT DETAILS | |
OTHER FINANCIAL STATEMENT DETAILS | NOTE 3 - OTHER FINANCIAL STATEMENT DETAILS Inventories: As of U.S. dollars in millions September 30, 2023 December 31, 2022 Raw materials $ 52 $ 41 Work in process 2 — Finished goods 300 72 Total inventories $ 354 $ 113 Inventory write-downs and write-offs were not material for the periods presented in these condensed consolidated financial statements. Property and equipment, net: As of U.S. dollars in millions September 30, 2023 December 31, 2022 Computers, electronic equipment and software $ 148 $ 124 Vehicles 14 13 Office furniture and equipment 4 4 Leasehold improvements 42 22 Construction in process 323 302 Total property and equipment, gross $ 531 $ 465 Less: accumulated depreciation (105) (81) Total property and equipment, net $ 426 $ 384 Depreciation expenses totaled $9 million and $7 million for the three months ended September 30, 2023 and October 1, 2022, respectively; and $24 million and $17 million for the nine months ended September 30, 2023 and October 1, 2022, respectively. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 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 31, 2022 12,564 $ 21.0 Granted 6,180 40.2 Vested (3,752) 21.0 Forfeited (230) 24.4 Outstanding as of September 30, 2023 14,762 $ 29.0 The RSUs activity for the three months ended September 30, 2023 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 Options outstanding as of July 1, 2023 9,354 $ 22.2 Granted 5,524 40.4 Vested (2) 35.1 Forfeited (114) 26.7 Outstanding as of September 30, 2023 14,762 $ 29.0 As of September 30, 2023, the unrecognized compensation cost related to all unvested RSUs granted under the 2022 Plan, was $327 million, which is expected to be recognized as expense over a weighted-average period of 2.4 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 September 30, 2023 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 2.3 $ 6.2 52 $ 4.1 $ 22.4 - 24.3 21 0.3 22.9 21 22.9 $55.2 68 5.5 55.2 68 55.2 Total 148 3.5 $ 30.9 141 $ 31.4 The option activity for the nine months ended September 30, 2023 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 31, 2022 2,270 0.8 $ 27.1 $ 1 Exercised (23) — 22.2 — Expired (2,099) — 26.9 — Options outstanding as of September 30, 2023 148 3.5 $ 30.9 $ 2 Options exercisable as of September 30, 2023 141 3.6 $ 31.4 $ 2 The option activity for the three months ended September 30, 2023 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 July 1, 2023 2,252 0.4 $ 27.1 $ 16 Exercised (5) — 21.9 — Expired (2,099) — 26.9 — Options outstanding as of September 30, 2023 148 3.5 $ 30.9 $ 2 Options exercisable as of September 30, 2023 141 3.6 $ 31.4 $ 2 (1) (2) RSUs The RSUs activity for the nine months ended September 30, 2023 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 31, 2022 5,692 $ 44.8 Vested (881) 45.5 Forfeited (216) 45.7 Outstanding as of September 30, 2023 4,595 $ 44.6 The RSUs activity for the three months ended September 30, 2023 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 July 1, 2023 4,848 $ 44.5 Vested (178) 40.7 Forfeited (75) 45.0 Outstanding as of September 30, 2023 4,595 $ 44.6 Unrecognized expenses As of September 30, 2023, the unrecognized compensation cost related to stock options and RSUs granted under the Intel 2006 Plan was $108 million, which will be recognized over a weighted average period of 1.1 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 Nine months ended U.S. dollars in millions September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Cost of revenue $ — $ — $ 2 $ — Research and development, net 53 32 158 101 Sales and marketing 2 1 6 3 General and administrative 8 3 24 8 Total share-based compensation $ 63 $ 36 $ 190 $ 112 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | NOTE 5 - EARNINGS (LOSS) PER SHARE Before the Mobileye IPO, Intel held directly or indirectly the 100 shares of common stock of Mobileye, with a par value of $0.01 per share, that were issued and outstanding In connection with the Mobileye IPO, we issued 41,000,000 shares of our Class A common stock to the public at a public offering price of $21 per share and an additional 4,761,905 Class A shares at a private placement. The Mobileye IPO closed on October 28, 2022. On November 1, 2022, we closed the sale of an additional 6,150,000 shares pursuant to the exercise of the underwriters’ over-allotment option. In accordance with ASC 260, the Class A shares issued in connection with the Mobileye IPO are included in earnings (loss) per share calculations for periods subsequent to the closing of the Mobileye IPO and are not included in the earnings (loss) per share calculations for periods prior to the closing of the Mobileye IPO. On June 12, 2023, we completed the Secondary Offering, pursuant to which 38,500,000 shares of Class B common stock held by Intel were converted into an equal number of shares of Class A common stock. Accordingly, as of September 30, 2023, we have 711,500,000 Class B shares, all held by Intel, and 94,164,300 Class A shares, both of which are utilized for the calculation of basic and diluted EPS. The outstanding Class A shares also include shares issued upon vesting of outstanding RSUs, see note 4. For the three and nine months ended September 30, 2023, the computation of diluted earnings (loss) per share attributable to common stockholders does not include 5.5 million and 14.9 million potential common shares, 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. The following table summarizes the calculation of basic earnings (loss) per share for the periods presented: Three months ended Nine months ended September 30, October 1, September 30, October 1, In millions, except per share amounts 2023 2022 2023 2022 Numerator: Net income (loss) $ 17 $ (45) $ (90) $ (112) Denominator: Weighted average common shares - basic 806 750 804 750 Dilutive effect of unvested RSU awards 4 — — — Weighted average common shares - diluted 810 750 804 750 Earnings (loss) per share: Basic 0.02 (0.06) (0.11) (0.15) Diluted $ 0.02 $ (0.06) $ (0.11) $ (0.15) |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
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 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. Any differences between taxes currently 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 (see also Note 2). There was no adjustment to additional paid-in capital for the three and nine months ended September 30, 2023, based on estimates of forecasted 2023 US taxes payable under the separate return method for those periods. The adjustment to additional paid-in capital for the three and nine months ended October 1, 2022 was a decrease of $9 million and $16 million, respectively, because amounts payable under the Tax Sharing Agreement exceeded the amounts calculated under the separate return method. The tax expense for the nine months ended September 30, 2023 and October 1, 2022 was unfavorably impacted by a valuation allowance for certain jurisdictions. The decrease in tax expense was driven by a change in the jurisdictional composition of our taxable income based on operational results and the recognition of discrete tax items in 2022. Additionally, an accrued withholding tax expense of $14 million related to a dividend distribution between entities within the Mobileye Group that was recorded in the nine months ended October 1, 2022. 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. |
RELATED PARTIES TRANSACTIONS
RELATED PARTIES TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
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 consolidated financial statement for the year ended December 31, 2022. 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 relating to the value of share-based compensation provided to the Company’s employees for RSUs or stock options exercisable in Intel stock. The liability associated with the stock compensation recharge agreement that is reflected on the condensed consolidated balance sheets, under related party payable was approximately $1 million and $1 million as of September 30, 2023 and December 31, 2022, respectively. The reimbursement amounts recorded as an adjustment to additional paid-in capital (and to parent net investment prior to the Mobileye IPO) in the condensed consolidated statement of changes in equity were $7 million and $5 million for the three months ended September 30, 2023 and October 1, 2022, respectively and $29 million and $45 million for the nine months ended September 30, 2023 and October 1, 2022, 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 September 30, 2023 and October 1, 2022, were $1.2 million and $1.3 million, respectively and $3.6 million and $2.0 million for the nine months ended September 30, 2023 and October 1, 2022, 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 September 30, 2023 and October 1, 2022, respectively and $1.7 million and $0.8 million for the nine months ended September 30, 2023 and October 1, 2022, respectively. Administrative Services Agreement Under the Administrative Services Agreement, effective as of the completion of the Mobileye IPO, Intel provides the Company with administrative, financial, legal, tax, 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 and nine months ended September 30, 2023 were $1.7 million and $2.9 million, respectively. Technology and Services Agreement The Technology and Services Agreement, effective as of the completion of the Mobileye IPO, 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 does not apply to projects for the development and manufacture of a Lidar sensor system for automobiles, for which the LiDAR Product Collaboration Agreement applies. 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 and nine months ended September 30, 2023 were $1.4 million and $3.8 million, respectively. LiDAR Product Collaboration Agreement The LiDAR Product Collaboration Agreement, effective as of the completion of the Mobileye IPO, 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. There were no amounts received or receivable from Intel under this agreement for the three and nine months ended September 30, 2023. 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 September 30, 2023 and December 31, 2022, the related party payable to Intel, pursuant to the Tax Sharing Agreement was $34 million. |
IDENTIFIED INTANGIBLE ASSETS
IDENTIFIED INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
IDENTIFIED INTANGIBLE ASSETS | |
IDENTIFIED INTANGIBLE ASSETS | NOTE 8 - IDENTIFIED INTANGIBLE ASSETS As of U.S. dollars in millions September 30, 2023 December 31, 2022 Accumulated Accumulated Gross Assets Amortization Net Gross Assets Amortization Net Developed technology $ 3,705 $ 1,913 $ 1,792 $ 3,973 $ 1,870 $ 2,103 Customer relationships & brands 786 413 373 786 362 424 Total $ 4,491 $ 2,326 $ 2,165 $ 4,759 $ 2,232 $ 2,527 The following table presents the amortization expenses recorded for these identified intangible assets and their weighted average useful lives: Three months ended Nine months ended Weighted September 30, October 1, September 30, October 1, Average U.S. dollars in millions 2023 2022 2023 2022 Useful Life Developed technology $ 94 $ 115 $ 311 $ 355 10 Customer relationships & brands 17 16 51 58 12 Total amortization expenses $ 111 $ 131 $ 362 $ 413 The Company expects future amortization expenses for the next five years and thereafter to be as follows: Remainder U.S. dollars in millions of 2023 2024 2025 2026 2027 Thereafter Total Future amortization expenses $ 112 $ 445 $ 443 $ 332 $ 179 $ 654 $ 2,165 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
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 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 31, 2022. The following are segment results for each period as follows: Three months ended September 30, 2023 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 521 $ 9 $ — $ 530 Cost of revenues 163 1 94 258 Research and development, net 208 10 — 218 Sales and marketing 8 3 17 28 General and administrative 15 3 — 18 Segment performance $ 127 $ (8) $ (111) $ 8 Other financial income (expense), net — — — 15 Income (loss) before taxes on income — — — 23 Share-based compensation 59 4 — 63 Depreciation of property and equipment 9 — — 9 Three months ended October 1, 2022 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 443 $ 7 $ — $ 450 Cost of revenues 117 1 115 233 Research and development, net 196 10 — 206 Sales and marketing 8 3 16 27 General and administrative 5 3 1 9 Segment performance $ 117 $ (10) $ (132) $ (25) Interest income (expense) with related party, net — — — (6) Other financial income (expense), net — — — 1 Income (loss) before taxes on income — — — (30) Share-based compensation 32 4 — 36 Depreciation of property and equipment 7 — — 7 Nine months ended September 30, 2023 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 1,417 $ 25 $ — $ 1,442 Cost of revenues 424 4 311 739 Research and development, net 633 31 — 664 Sales and marketing 30 9 51 90 General and administrative 47 8 — 55 Segment performance $ 283 $ (27) $ (362) $ (106) Other financial income (expense), net — — — 38 Income (loss) before taxes on income — — — (68) Share-based compensation 175 15 — 190 Depreciation of property and equipment 24 — — 24 Nine months ended October 1, 2022 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 1,286 $ 18 $ — $ 1,304 Cost of revenues 324 3 355 682 Research and development, net 534 31 — 565 Sales and marketing 24 9 58 91 General and administrative 14 9 4 27 Segment performance $ 390 $ (34) $ (417) $ (61) Interest income (expense) with related party, net — — — (11) Other financial income (expense), net — — — 6 Income (loss) before taxes on income — — — (66) Share-based compensation 101 11 — 112 Depreciation of property and equipment 17 — — 17 Total revenues based on the country that the product was shipped to were as follows: Three months ended Nine months ended September 30, October 1, September 30, October 1, U.S. dollars in millions 2023 2022 2023 2022 China 154 126 423 360 USA 122 113 295 342 Germany 98 72 267 174 South Korea 37 31 118 86 United Kingdom 31 52 108 165 Poland 22 14 64 58 Czech Republic 11 — 41 — Hungary 30 25 64 62 Rest of World 25 17 62 57 Total $ 530 $ 450 $ 1,442 $ 1,304 We generate the majority of our revenue from the sale of our EyeQ® SoCs to OEMs through sales to Tier 1 automotive suppliers. EyeQ® SoC sales represented approximately 89% and 88% of our revenue for each of the three months ended September 30, 2023 and October 1, 2022, respectively and 90% and 90% of our revenue for each of the nine months ended September 30, 2023 and October 1, 2022, respectively. Major Customers Revenue from major customers that amount to 10% or more of total revenue: Three months ended Nine months ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Percent of total revenues: Customer A 27 % 31 % 28 % 39 % Customer B 26 % 19 % 26 % 17 % Customer C 15 % 16 % 14 % 15 % Accounts receivable balances of major customers that amount to 10% or more of total accounts receivable balance: As of September 30, December 31, 2023 2022 Percent of total accounts receivables balance: Customer A 32 % 32 % Customer B 16 % 19 % Customer C 22 % 25 % |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 10 - SUBSEQUENT EVENTS In October 2023, 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 $20.8 million, which consisted of 582 thousand RSUs, which will vest over a service period of three years. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 2022 was a 53-week fiscal year; fiscal year 2023 is a 52-week fiscal year. The additional week in fiscal year 2022 was added in the first quarter, which consisted of 14 weeks. The results of operations for the three and nine months ended September 30, 2023 shown in this report are not necessarily indicative of the results to be expected for the full year ending 2023. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 31, 2022. The financial statements and accompanying notes that include periods ending or as of dates prior to the completion of the Mobileye IPO have been derived from the consolidated financial statements and accounting records of Intel and are presented as if the Company had been operating as a stand-alone company. The assets, liabilities, revenue, and expenses directly attributable to the Company’s operations, including the acquired goodwill and intangible assets, have been reflected in these condensed consolidated financial statements on a historical cost basis, as included in the consolidated financial statements of Intel. As Mobileye Group was not historically held by a single legal entity, total parent net investment is shown in lieu of equity in the periods prior to the completion of the Mobileye IPO and represents Intel’s total interest in the recorded net assets of Mobileye Group. All intercompany transactions within the previously combined businesses of the Company have been eliminated. Transactions between the Company and Intel, arising from arrangements with Intel and other similar related-party transactions, were considered to be effectively settled at the time the transactions were recorded, unless otherwise noted. The total net effect of the settlement of these transactions was reflected within parent net investment as a component of equity and within net transfers from Parent as a financing activity in the periods prior to the completion of the Mobileye IPO, unless otherwise noted. Following the completion of the Mobileye IPO, the condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the fiscal year ended December 31, 2022. For further detail, see Note 2 in the audited consolidated financial statements for the fiscal year ended December 31, 2022. |
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 goodwill and income taxes. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash The following is a reconciliation of the cash, cash equivalents and restricted cash as of each period end: As of U.S. dollars in millions September 30, 2023 December 31, 2022 Cash $ 60 $ 188 Short term deposits 115 285 Money market funds 1,018 551 Restricted cash (within other current and other long-term assets) 14 11 Cash, cash equivalents and restricted cash $ 1,207 $ 1,035 |
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 and consists of financial assets for which quoted prices are available in an active market. Interest income related to money market funds for the three and nine months ended September 30, 2023 amounted to $15 million and $35 million, respectively. 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 $24 million and $15 million were offset against research and development costs in the three months ended September 30, 2023 and October 1, 2022, respectively; and $57 million and $40 million were offset in the nine months ended September 30, 2023 and October 1, 2022, 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 Israel 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. 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. As of September 30, 2023, there are no outstanding hedging instruments and all of the related accumulated other comprehensive income (loss) was reclassified into the statement of operations and comprehensive income (loss). The notional amount and fair value of derivatives outstanding at Intel on behalf of Mobileye were: As of U.S. dollars in millions September 30, 2023 December 31, 2022 Notional amount of derivatives $ — $ 93 Fair value of derivatives receivable from (payable to) Intel $ — $ (9) The change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging was as follows: Three Months Ended Nine Months Ended U.S. dollars in millions September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Other comprehensive income (loss) before reclassifications $ — $ 1 $ — $ (30) Amounts reclassified out of accumulated other comprehensive income (loss) — 6 10 6 Tax effects — (1) (1) 1 Other comprehensive income (loss), net $ — $ 6 $ 9 $ (23) |
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 expense 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. 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. |
Loss contingencies | Loss contingencies Management believes that there are no current matters that would have a material effect on the Company’s condensed consolidated balance sheets, statements of operations or cash flows. Legal fees are expensed as incurred. |
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 and money market funds, 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 investors money market funds and are readily redeemable to cash. Accordingly, management believes that these bank deposits and money market funds, 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 establishes credit losses for accounts receivable by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history from such customers, and the customers’ current ability to pay its obligation to the Company. As of September 30, 2023 and December 31, 2022, the credit losses for accounts receivable were not material. The Company writes off accounts receivable when they are deemed uncollectible. For the three and nine months ended September 30, 2023 and October 1, 2022, the charge-offs and recoveries in relation to the credit losses accounts 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 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 year ended December 31, 2022, due to global supply chain constraints and shortage of semiconductors, the Company’s sole supplier was not able to meet demand of the Company for EyeQ® SoCs, causing a significant reduction in the Company’s inventory levels. We may experience a shortfall of EyeQ® SoCs, ECUs for SuperVision™ and other components for our products. The reoccurrence of shortages and supply chain constraints in EyeQ® SoCs and ECUs for SuperVision™ and in components of our other products, may impair the Company’s ability to meet its customers’ requirements in a timely manner and may adversely affect the Company’s business, results of operations and financial condition. Moreover, to the extent that a global semiconductor shortage results in reduced production or production delays by automakers, those delays could result in reduced or delayed demand for the Company’s products. In addition, issues relating to the COVID-19 pandemic led to port congestion and intermittent supplier shutdowns and delays in the delivery of critical components, which resulted in additional expenses to expedite delivery of critical parts. Sustaining the Company’s production trajectory requires the readiness and solvency of its suppliers and vendors, a stable and motivated production workforce and ongoing government cooperation, including for travel and visa allowances, which governments may restrict. 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 short-term supply chain constraints would materially adversely affect our results of operations, capital resources, sales, profits, and liquidity. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | As of U.S. dollars in millions September 30, 2023 December 31, 2022 Cash $ 60 $ 188 Short term deposits 115 285 Money market funds 1,018 551 Restricted cash (within other current and other long-term assets) 14 11 Cash, cash equivalents and restricted cash $ 1,207 $ 1,035 |
Schedule of notional amount and fair value of derivatives outstanding at Intel on behalf of Mobileye | As of U.S. dollars in millions September 30, 2023 December 31, 2022 Notional amount of derivatives $ — $ 93 Fair value of derivatives receivable from (payable to) Intel $ — $ (9) |
Schedule of change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging | Three Months Ended Nine Months Ended U.S. dollars in millions September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Other comprehensive income (loss) before reclassifications $ — $ 1 $ — $ (30) Amounts reclassified out of accumulated other comprehensive income (loss) — 6 10 6 Tax effects — (1) (1) 1 Other comprehensive income (loss), net $ — $ 6 $ 9 $ (23) |
OTHER FINANCIAL STATEMENT DET_2
OTHER FINANCIAL STATEMENT DETAILS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
OTHER FINANCIAL STATEMENT DETAILS | |
Schedule of inventories | As of U.S. dollars in millions September 30, 2023 December 31, 2022 Raw materials $ 52 $ 41 Work in process 2 — Finished goods 300 72 Total inventories $ 354 $ 113 |
Schedule of property and equipment, net | As of U.S. dollars in millions September 30, 2023 December 31, 2022 Computers, electronic equipment and software $ 148 $ 124 Vehicles 14 13 Office furniture and equipment 4 4 Leasehold improvements 42 22 Construction in process 323 302 Total property and equipment, gross $ 531 $ 465 Less: accumulated depreciation (105) (81) Total property and equipment, net $ 426 $ 384 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
EQUITY | |
Schedule of RSUs activity | Weighted average grant Number of RSUs date fair value In thousands U.S. dollars Outstanding as of December 31, 2022 12,564 $ 21.0 Granted 6,180 40.2 Vested (3,752) 21.0 Forfeited (230) 24.4 Outstanding as of September 30, 2023 14,762 $ 29.0 Weighted average grant Number of RSUs date fair value In thousands U.S. dollars Options outstanding as of July 1, 2023 9,354 $ 22.2 Granted 5,524 40.4 Vested (2) 35.1 Forfeited (114) 26.7 Outstanding as of September 30, 2023 14,762 $ 29.0 |
Schedule of outstanding and exercisable options | Outstanding and exercisable options for Intel’s common stock under Intel’s plan as of September 30, 2023 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 2.3 $ 6.2 52 $ 4.1 $ 22.4 - 24.3 21 0.3 22.9 21 22.9 $55.2 68 5.5 55.2 68 55.2 Total 148 3.5 $ 30.9 141 $ 31.4 |
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 31, 2022 2,270 0.8 $ 27.1 $ 1 Exercised (23) — 22.2 — Expired (2,099) — 26.9 — Options outstanding as of September 30, 2023 148 3.5 $ 30.9 $ 2 Options exercisable as of September 30, 2023 141 3.6 $ 31.4 $ 2 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 July 1, 2023 2,252 0.4 $ 27.1 $ 16 Exercised (5) — 21.9 — Expired (2,099) — 26.9 — Options outstanding as of September 30, 2023 148 3.5 $ 30.9 $ 2 Options exercisable as of September 30, 2023 141 3.6 $ 31.4 $ 2 (1) (2) |
Schedule of share-based compensation expenses | Three months ended Nine months ended U.S. dollars in millions September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Cost of revenue $ — $ — $ 2 $ — Research and development, net 53 32 158 101 Sales and marketing 2 1 6 3 General and administrative 8 3 24 8 Total share-based compensation $ 63 $ 36 $ 190 $ 112 |
Intel | |
EQUITY | |
Schedule of RSUs activity | The RSUs activity for the nine months ended September 30, 2023 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 31, 2022 5,692 $ 44.8 Vested (881) 45.5 Forfeited (216) 45.7 Outstanding as of September 30, 2023 4,595 $ 44.6 The RSUs activity for the three months ended September 30, 2023 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 July 1, 2023 4,848 $ 44.5 Vested (178) 40.7 Forfeited (75) 45.0 Outstanding as of September 30, 2023 4,595 $ 44.6 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of calculation of basic earnings (loss) per share | Three months ended Nine months ended September 30, October 1, September 30, October 1, In millions, except per share amounts 2023 2022 2023 2022 Numerator: Net income (loss) $ 17 $ (45) $ (90) $ (112) Denominator: Weighted average common shares - basic 806 750 804 750 Dilutive effect of unvested RSU awards 4 — — — Weighted average common shares - diluted 810 750 804 750 Earnings (loss) per share: Basic 0.02 (0.06) (0.11) (0.15) Diluted $ 0.02 $ (0.06) $ (0.11) $ (0.15) |
IDENTIFIED INTANGIBLE ASSETS (T
IDENTIFIED INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
IDENTIFIED INTANGIBLE ASSETS | |
Schedule of components of identified intangible assets | As of U.S. dollars in millions September 30, 2023 December 31, 2022 Accumulated Accumulated Gross Assets Amortization Net Gross Assets Amortization Net Developed technology $ 3,705 $ 1,913 $ 1,792 $ 3,973 $ 1,870 $ 2,103 Customer relationships & brands 786 413 373 786 362 424 Total $ 4,491 $ 2,326 $ 2,165 $ 4,759 $ 2,232 $ 2,527 |
Schedule of amortization expenses recorded for these identified intangible assets and their weighted average useful lives | Three months ended Nine months ended Weighted September 30, October 1, September 30, October 1, Average U.S. dollars in millions 2023 2022 2023 2022 Useful Life Developed technology $ 94 $ 115 $ 311 $ 355 10 Customer relationships & brands 17 16 51 58 12 Total amortization expenses $ 111 $ 131 $ 362 $ 413 |
Schedule of expected future amortization expenses for the next five years | Remainder U.S. dollars in millions of 2023 2024 2025 2026 2027 Thereafter Total Future amortization expenses $ 112 $ 445 $ 443 $ 332 $ 179 $ 654 $ 2,165 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
SEGMENT INFORMATION | |
Schedule of segment results | Three months ended September 30, 2023 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 521 $ 9 $ — $ 530 Cost of revenues 163 1 94 258 Research and development, net 208 10 — 218 Sales and marketing 8 3 17 28 General and administrative 15 3 — 18 Segment performance $ 127 $ (8) $ (111) $ 8 Other financial income (expense), net — — — 15 Income (loss) before taxes on income — — — 23 Share-based compensation 59 4 — 63 Depreciation of property and equipment 9 — — 9 Three months ended October 1, 2022 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 443 $ 7 $ — $ 450 Cost of revenues 117 1 115 233 Research and development, net 196 10 — 206 Sales and marketing 8 3 16 27 General and administrative 5 3 1 9 Segment performance $ 117 $ (10) $ (132) $ (25) Interest income (expense) with related party, net — — — (6) Other financial income (expense), net — — — 1 Income (loss) before taxes on income — — — (30) Share-based compensation 32 4 — 36 Depreciation of property and equipment 7 — — 7 Nine months ended September 30, 2023 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 1,417 $ 25 $ — $ 1,442 Cost of revenues 424 4 311 739 Research and development, net 633 31 — 664 Sales and marketing 30 9 51 90 General and administrative 47 8 — 55 Segment performance $ 283 $ (27) $ (362) $ (106) Other financial income (expense), net — — — 38 Income (loss) before taxes on income — — — (68) Share-based compensation 175 15 — 190 Depreciation of property and equipment 24 — — 24 Nine months ended October 1, 2022 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 1,286 $ 18 $ — $ 1,304 Cost of revenues 324 3 355 682 Research and development, net 534 31 — 565 Sales and marketing 24 9 58 91 General and administrative 14 9 4 27 Segment performance $ 390 $ (34) $ (417) $ (61) Interest income (expense) with related party, net — — — (11) Other financial income (expense), net — — — 6 Income (loss) before taxes on income — — — (66) Share-based compensation 101 11 — 112 Depreciation of property and equipment 17 — — 17 |
Schedule of total revenues based on country | Three months ended Nine months ended September 30, October 1, September 30, October 1, U.S. dollars in millions 2023 2022 2023 2022 China 154 126 423 360 USA 122 113 295 342 Germany 98 72 267 174 South Korea 37 31 118 86 United Kingdom 31 52 108 165 Poland 22 14 64 58 Czech Republic 11 — 41 — Hungary 30 25 64 62 Rest of World 25 17 62 57 Total $ 530 $ 450 $ 1,442 $ 1,304 |
Schedule of concentration of risk | Three months ended Nine months ended September 30, October 1, September 30, October 1, 2023 2022 2023 2022 Percent of total revenues: Customer A 27 % 31 % 28 % 39 % Customer B 26 % 19 % 26 % 17 % Customer C 15 % 16 % 14 % 15 % As of September 30, December 31, 2023 2022 Percent of total accounts receivables balance: Customer A 32 % 32 % Customer B 16 % 19 % Customer C 22 % 25 % |
GENERAL (Details)
GENERAL (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 12, 2023 | Jun. 07, 2023 | Nov. 01, 2022 | Oct. 28, 2022 | May 31, 2022 |
GENERAL | |||||
Amount of secondary offering | $ 1 | ||||
Class A | |||||
GENERAL | |||||
Number of shares issued during the period | 6,150,000 | ||||
Class B | |||||
GENERAL | |||||
Number of shares converted into Class A common stock | 38,500,000 | ||||
IPO | |||||
GENERAL | |||||
Net proceeds from IPO | $ 1,000 | ||||
Underwriting discounts and commissions | 41 | ||||
Offering costs | $ 18 | ||||
IPO | Class A | |||||
GENERAL | |||||
Number of shares issued during the period | 41,000,000 | ||||
Offering price per share | $ 21 | ||||
Private placement | |||||
GENERAL | |||||
Gross proceeds from private placement | $ 100 | ||||
Private placement | Class A | |||||
GENERAL | |||||
Number of shares issued during the period | 4,761,905 | ||||
Offering price per share | $ 21 | ||||
Secondary Offering | Class A | |||||
GENERAL | |||||
Number of shares issued during the period | 38,500,000 | ||||
Offering price per share | $ 42 | ||||
Secondary Offering | Class B | |||||
GENERAL | |||||
Number of shares converted into Class A common stock | 38,500,000 | ||||
Moovit | |||||
GENERAL | |||||
Equity interests percentage | 100% | ||||
Intel | |||||
GENERAL | |||||
Percentage of voting power of common stock | 98.70% | ||||
Intel | Secondary Offering | |||||
GENERAL | |||||
Percentage of outstanding common stock | 88.30% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | ||||
Interest income related to money market funds | $ 15 | $ 35 | ||
Research and development reimbursements | $ 24 | $ 15 | $ 57 | $ 40 |
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 | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Dec. 31, 2021 |
SIGNIFICANT ACCOUNTING POLICIES | ||||
Cash | $ 60 | $ 188 | ||
Short term deposits | 115 | 285 | ||
Money market funds | 1,018 | 551 | ||
Restricted cash (within other current and other long-term assets) | 14 | 11 | ||
Cash, cash equivalents and restricted cash | $ 1,207 | $ 1,035 | $ 882 | $ 625 |
Restricted cash, noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term assets |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Notional amount and fair value of derivatives outstanding at Intel on behalf of Mobileye (Details) $ in Millions | Dec. 31, 2022 USD ($) |
SIGNIFICANT ACCOUNTING POLICIES | |
Notional amount of derivatives | $ 93 |
Fair value of derivatives receivable from (payable to) Intel | $ (9) |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | |||
Other comprehensive income (loss) before reclassifications | $ 1 | $ (30) | |
Amounts reclassified out of accumulated other comprehensive income (loss) | 6 | $ 10 | 6 |
Tax effects | (1) | (1) | 1 |
Other comprehensive income (loss), net | $ 6 | $ 9 | $ (23) |
OTHER FINANCIAL STATEMENT DET_3
OTHER FINANCIAL STATEMENT DETAILS - Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
OTHER FINANCIAL STATEMENT DETAILS | ||
Raw materials | $ 52 | $ 41 |
Work in process | 2 | |
Finished goods | 300 | 72 |
Total inventories | $ 354 | $ 113 |
OTHER FINANCIAL STATEMENT DET_4
OTHER FINANCIAL STATEMENT DETAILS - Property and equipment, net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Property and equipment, net | |||||
Total property and equipment, gross | $ 531 | $ 531 | $ 465 | ||
Less: accumulated depreciation | (105) | (105) | (81) | ||
Total property and equipment, net | 426 | 426 | 384 | ||
Depreciation expenses | 9 | $ 7 | 24 | $ 17 | |
Computers, electronic equipment and software | |||||
Property and equipment, net | |||||
Total property and equipment, gross | 148 | 148 | 124 | ||
Vehicles | |||||
Property and equipment, net | |||||
Total property and equipment, gross | 14 | 14 | 13 | ||
Office furniture and equipment | |||||
Property and equipment, net | |||||
Total property and equipment, gross | 4 | 4 | 4 | ||
Leasehold improvements | |||||
Property and equipment, net | |||||
Total property and equipment, gross | 42 | 42 | 22 | ||
Construction on process | |||||
Property and equipment, net | |||||
Total property and equipment, gross | $ 323 | $ 323 | $ 302 |
EQUITY - Stock-based compensati
EQUITY - Stock-based compensation plans (Details) | 9 Months Ended |
Sep. 30, 2023 | |
EQUITY | |
Service period | 3 years |
EQUITY - RSU activity (Details)
EQUITY - RSU activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | |
Number of RSUs | ||
Outstanding at beginning | shares | 9,354 | |
Granted | shares | 5,524 | |
Vested | shares | (2) | |
Forfeited | shares | (114) | |
Outstanding at ending | shares | 14,762 | 14,762 |
Weighted average grant date fair value | ||
Outstanding at beginning | $ / shares | $ 22.2 | |
Granted | $ / shares | 40.4 | |
Vested | $ / shares | 35.1 | |
Forfeited | $ / shares | 26.7 | |
Outstanding at ending | $ / shares | $ 29 | $ 29 |
Unrecognized compensation cost | $ | $ 327 | $ 327 |
weighted average period | 2 years 4 months 24 days | |
RSUs | ||
Number of RSUs | ||
Outstanding at beginning | shares | 12,564 | |
Granted | shares | 6,180 | |
Vested | shares | (3,752) | |
Forfeited | shares | (230) | |
Outstanding at ending | shares | 14,762 | 14,762 |
Weighted average grant date fair value | ||
Outstanding at beginning | $ / shares | $ 21 | |
Granted | $ / shares | 40.2 | |
Vested | $ / shares | 21 | |
Forfeited | $ / shares | 24.4 | |
Outstanding at ending | $ / shares | $ 29 | $ 29 |
Intel 2006 Plan | ||
Weighted average grant date fair value | ||
Unrecognized compensation cost | $ | $ 108 | $ 108 |
weighted average period | 1 year 1 month 6 days | |
Intel 2006 Plan | RSUs | ||
Number of RSUs | ||
Outstanding at beginning | shares | 4,848 | 5,692 |
Vested | shares | (178) | (881) |
Forfeited | shares | (75) | (216) |
Outstanding at ending | shares | 4,595 | 4,595 |
Weighted average grant date fair value | ||
Outstanding at beginning | $ / shares | $ 44.5 | $ 44.8 |
Vested | $ / shares | 40.7 | 45.5 |
Forfeited | $ / shares | 45 | 45.7 |
Outstanding at ending | $ / shares | $ 44.6 | $ 44.6 |
EQUITY - Outstanding and exerci
EQUITY - Outstanding and exercisable options (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 01, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2017 | |
EQUITY | |||||
Outstanding, Number of options | 2,252 | 148 | 148 | 2,270 | |
Outstanding, Weighted average remaining contractual life (In years) | 4 months 24 days | 3 years 6 months | 3 years 6 months | 9 months 18 days | |
Outstanding, Weighted average exercise price | $ 27.1 | $ 30.9 | $ 30.9 | $ 27.1 | |
Exercisable, Number of options | 141 | 141 | |||
Exercisable, Weighted average exercise price | $ 31.4 | $ 31.4 | |||
Intel's plan | |||||
EQUITY | |||||
Vesting period | 3 years | ||||
Outstanding, Number of options | 148 | 148 | |||
Outstanding, Weighted average remaining contractual life (In years) | 3 years 6 months | ||||
Outstanding, Weighted average exercise price | $ 30.9 | $ 30.9 | |||
Exercisable, Number of options | 141 | 141 | |||
Exercisable, Weighted average exercise price | $ 31.4 | $ 31.4 | |||
$ 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) | 2 years 3 months 18 days | ||||
Outstanding, Weighted average exercise price | $ 6.2 | $ 6.2 | |||
Exercisable, Number of options | 52 | 52 | |||
Exercisable, Weighted average exercise price | $ 4.1 | $ 4.1 | |||
$ 22.4 - 24.3 | Intel's plan | |||||
EQUITY | |||||
Exercise price, minimum | 22.4 | ||||
Exercise price, maximum | $ 24.3 | ||||
Outstanding, Number of options | 21 | 21 | |||
Outstanding, Weighted average remaining contractual life (In years) | 3 months 18 days | ||||
Outstanding, Weighted average exercise price | $ 22.9 | $ 22.9 | |||
Exercisable, Number of options | 21 | 21 | |||
Exercisable, Weighted average exercise price | $ 22.9 | $ 22.9 | |||
$55.2 | Intel's plan | |||||
EQUITY | |||||
Exercise price | $ 55.2 | ||||
Outstanding, Number of options | 68 | 68 | |||
Outstanding, Weighted average remaining contractual life (In years) | 5 years 6 months | ||||
Outstanding, Weighted average exercise price | $ 55.2 | $ 55.2 | |||
Exercisable, Number of options | 68 | 68 | |||
Exercisable, Weighted average exercise price | $ 55.2 | $ 55.2 |
EQUITY - Option activity (Detai
EQUITY - Option activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jul. 01, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Number of options | ||||
Options outstanding at beginning | 2,252 | 2,270 | ||
Exercised | (5) | (23) | ||
Expired | (2,099) | (2,099) | ||
Options outstanding at ending | 2,252 | 148 | 148 | 2,270 |
Exercisable, Number of options | 141 | 141 | ||
Weighted average remaining contractual Life | ||||
Outstanding, Weighted average remaining contractual life (In years) | 4 months 24 days | 3 years 6 months | 3 years 6 months | 9 months 18 days |
Options exercisable | 3 years 7 months 6 days | 3 years 7 months 6 days | ||
Weighted average exercise price | ||||
Options outstanding at beginning | $ 27.1 | $ 27.1 | ||
Exercised | 21.9 | 22.2 | ||
Expired | 26.9 | 26.9 | ||
Options outstanding at ending | $ 27.1 | 30.9 | 30.9 | $ 27.1 |
Exercisable, Weighted average exercise price | $ 31.4 | $ 31.4 | ||
Aggregated intrinsic value | ||||
Options outstanding | $ 16 | $ 2 | $ 2 | $ 1 |
Options exercisable | $ 2 | $ 2 | ||
Share price | $ 35.6 | $ 35.6 | ||
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 | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
EQUITY | ||||
Total share-based compensation | $ 63 | $ 36 | $ 190 | $ 112 |
Cost of revenue | ||||
EQUITY | ||||
Total share-based compensation | 0 | 2 | ||
Research and development, net | ||||
EQUITY | ||||
Total share-based compensation | 53 | 32 | 158 | 101 |
Sales and marketing | ||||
EQUITY | ||||
Total share-based compensation | 2 | 1 | 6 | 3 |
General and administrative | ||||
EQUITY | ||||
Total share-based compensation | $ 8 | $ 3 | $ 24 | $ 8 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||||
Jun. 12, 2023 | Nov. 01, 2022 | Oct. 28, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | [1] | Oct. 01, 2022 | Dec. 31, 2022 | ||||
EARNINGS (LOSS) PER SHARE | |||||||||||||
Number of shares issued | 100,000,000 | 100,000,000 | |||||||||||
Par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||||||||
Number of shares outstanding | 100,000,000 | 100,000,000 | |||||||||||
Dilutive effect of equity incentive awards | 5,500,000 | 14,900,000 | |||||||||||
Numerator: | |||||||||||||
Net income (loss) | $ 17 | [1] | $ (45) | [1] | $ (90) | [1] | $ (112) | $ (112) | |||||
Denominator: | |||||||||||||
Weighted average common shares - basic | 806,000,000 | 750,000,000 | 804,000,000 | 750,000,000 | |||||||||
Dilutive effect of unvested RSU awards | 4,000,000 | ||||||||||||
Weighted average common shares - diluted | 810,000,000 | 750,000,000 | 804,000,000 | 750,000,000 | |||||||||
Basic | $ 0.02 | $ (0.06) | $ (0.11) | $ (0.15) | |||||||||
Diluted | $ 0.02 | $ (0.06) | $ (0.11) | $ (0.15) | |||||||||
Class B common stock | |||||||||||||
EARNINGS (LOSS) PER SHARE | |||||||||||||
Number of shares issued | 711,500,000 | 711,500,000 | 750,000,000 | ||||||||||
Par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Number of shares outstanding | 711,500,000 | 711,500,000 | 750,000,000 | ||||||||||
Number of shares converted into Class A common stock | 38,500,000 | ||||||||||||
Class B common stock | Cyclops holdings corporation | |||||||||||||
EARNINGS (LOSS) PER SHARE | |||||||||||||
Number of shares outstanding | 750,000,000 | 750,000,000 | |||||||||||
Number of shares issued during the period | 749,999,900 | ||||||||||||
Class A common stock | |||||||||||||
EARNINGS (LOSS) PER SHARE | |||||||||||||
Number of shares issued | 94,164,300 | 94,164,300 | 51,911,905 | ||||||||||
Par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Number of shares outstanding | 94,164,300 | 94,164,300 | 51,911,905 | ||||||||||
Number of shares issued during the period | 6,150,000 | ||||||||||||
IPO | Class B common stock | |||||||||||||
EARNINGS (LOSS) PER SHARE | |||||||||||||
Number of shares issued | 100,000,000 | 100,000,000 | |||||||||||
IPO | Class A common stock | |||||||||||||
EARNINGS (LOSS) PER SHARE | |||||||||||||
Number of shares issued during the period | 41,000,000 | ||||||||||||
Offering price per share | $ 21 | ||||||||||||
Private placement | Class A common stock | |||||||||||||
EARNINGS (LOSS) PER SHARE | |||||||||||||
Number of shares issued during the period | 4,761,905 | ||||||||||||
Offering price per share | $ 21 | ||||||||||||
Over allotment option | Class A common stock | |||||||||||||
EARNINGS (LOSS) PER SHARE | |||||||||||||
Number of shares issued during the period | 6,150,000 | ||||||||||||
[1]Rounding of Class A and Class B share amounts due to Secondary offering. |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 01, 2022 | Oct. 01, 2022 | |
INCOME TAXES | ||
Amount payable under tax sharing agreement | $ 9 | $ 16 |
Withholding tax expenses | $ 14 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | |
RELATED PARTIES TRANSACTIONS | ||||||
Leasing costs | $ 1.2 | $ 1.3 | $ 3.6 | $ 2 | ||
Travel reimbursements cost | 0.5 | 0.5 | 1.7 | 0.8 | ||
Amount payable under tax sharing agreement | 9 | 16 | ||||
Intel | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Amount payable under tax sharing agreement | 34 | $ 34 | ||||
Stock Compensation Recharge Agreement | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Related party payable | 1 | 1 | $ 1 | $ 1 | ||
Adjustment to additional paid-in capital for reimbursement amount | 7 | $ 5 | 29 | $ 45 | ||
Administrative Services Agreement | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Costs incurred | 1.7 | 2.9 | ||||
Technology and Services Agreement | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Costs incurred | 1.4 | 3.8 | ||||
LiDAR Product Collaboration Agreement | ||||||
RELATED PARTIES TRANSACTIONS | ||||||
Lidar sensor system development costs | 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 | Sep. 30, 2023 | Dec. 31, 2022 |
IDENTIFIED INTANGIBLE ASSETS | ||
Gross Assets | $ 4,491 | $ 4,759 |
Accumulated Amortization | 2,326 | 2,232 |
Net | 2,165 | 2,527 |
Developed technology | ||
IDENTIFIED INTANGIBLE ASSETS | ||
Gross Assets | 3,705 | 3,973 |
Accumulated Amortization | 1,913 | 1,870 |
Net | 1,792 | 2,103 |
Customer relationships & brands | ||
IDENTIFIED INTANGIBLE ASSETS | ||
Gross Assets | 786 | 786 |
Accumulated Amortization | 413 | 362 |
Net | $ 373 | $ 424 |
IDENTIFIED INTANGIBLE ASSETS _2
IDENTIFIED INTANGIBLE ASSETS - Amortization expenses and weighted average useful lives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
IDENTIFIED INTANGIBLE ASSETS | ||||
Total amortization expenses | $ 111 | $ 131 | $ 362 | $ 413 |
Developed technology | ||||
IDENTIFIED INTANGIBLE ASSETS | ||||
Amortization of intangible assets | 94 | 115 | $ 311 | 355 |
Developed technology | Weighted Average Useful Life | ||||
IDENTIFIED INTANGIBLE ASSETS | ||||
Useful Life | 10 years | |||
Customer relationships & brands | ||||
IDENTIFIED INTANGIBLE ASSETS | ||||
Amortization of intangible assets | $ 17 | $ 16 | $ 51 | $ 58 |
Customer relationships & brands | Weighted Average Useful Life | ||||
IDENTIFIED INTANGIBLE ASSETS | ||||
Useful Life | 12 years |
IDENTIFIED INTANGIBLE ASSETS _3
IDENTIFIED INTANGIBLE ASSETS - Future amortization expenses (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
IDENTIFIED INTANGIBLE ASSETS | ||
2023 | $ 112 | |
2024 | 445 | |
2025 | 443 | |
2026 | 332 | |
2027 | 179 | |
Thereafter | 654 | |
Total | $ 2,165 | $ 2,527 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
SEGMENT INFORMATION | |
Number of operating segments | 2 |
SEGMENT INFORMATION - Segment r
SEGMENT INFORMATION - Segment results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
SEGMENT INFORMATION | ||||
Revenues | $ 530 | $ 450 | $ 1,442 | $ 1,304 |
Cost of revenues | 258 | 233 | 739 | 682 |
Research and development, net | 218 | 206 | 664 | 565 |
Sales and Marketing | 28 | 27 | 90 | 91 |
General and administrative | 18 | 9 | 55 | 27 |
Operating income (loss) | 8 | (25) | (106) | (61) |
Interest income (expense) with a related party, net | (6) | (11) | ||
Other financial income (expense), net | 15 | 1 | 38 | 6 |
Income (loss) before taxes on income | 23 | (30) | (68) | (66) |
Share-based compensation | 63 | 36 | 190 | 112 |
Depreciation of property and equipment | 9 | 7 | 24 | 17 |
Operating Segments | Mobileye | ||||
SEGMENT INFORMATION | ||||
Revenues | 521 | 443 | 1,417 | 1,286 |
Cost of revenues | 163 | 117 | 424 | 324 |
Research and development, net | 208 | 196 | 633 | 534 |
Sales and Marketing | 8 | 8 | 30 | 24 |
General and administrative | 15 | 5 | 47 | 14 |
Operating income (loss) | 127 | 117 | 283 | 390 |
Share-based compensation | 59 | 32 | 175 | 101 |
Depreciation of property and equipment | 9 | 7 | 24 | 17 |
Operating Segments | Other | ||||
SEGMENT INFORMATION | ||||
Revenues | 9 | 7 | 25 | 18 |
Cost of revenues | 1 | 1 | 4 | 3 |
Research and development, net | 10 | 10 | 31 | 31 |
Sales and Marketing | 3 | 3 | 9 | 9 |
General and administrative | 3 | 3 | 8 | 9 |
Operating income (loss) | (8) | (10) | (27) | (34) |
Share-based compensation | 4 | 4 | 15 | 11 |
Amounts not allocated to segments | ||||
SEGMENT INFORMATION | ||||
Cost of revenues | 94 | 115 | 311 | 355 |
Sales and Marketing | 17 | 16 | 51 | 58 |
General and administrative | 1 | 4 | ||
Operating income (loss) | $ (111) | $ (132) | $ (362) | $ (417) |
SEGMENT INFORMATION - Total rev
SEGMENT INFORMATION - Total revenues based on the country (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
SEGMENT INFORMATION | ||||
Revenue | $ 530 | $ 450 | $ 1,442 | $ 1,304 |
Product concentration | Revenue | EyeQ SoC | ||||
SEGMENT INFORMATION | ||||
Concentration risk percentage | 89% | 88% | 90% | 90% |
China | ||||
SEGMENT INFORMATION | ||||
Revenue | $ 154 | $ 126 | $ 423 | $ 360 |
USA | ||||
SEGMENT INFORMATION | ||||
Revenue | 122 | 113 | 295 | 342 |
Germany | ||||
SEGMENT INFORMATION | ||||
Revenue | 98 | 72 | 267 | 174 |
South Korea | ||||
SEGMENT INFORMATION | ||||
Revenue | 37 | 31 | 118 | 86 |
United Kingdom | ||||
SEGMENT INFORMATION | ||||
Revenue | 31 | 52 | 108 | 165 |
Poland | ||||
SEGMENT INFORMATION | ||||
Revenue | 22 | 14 | 64 | 58 |
Czech Republic | ||||
SEGMENT INFORMATION | ||||
Revenue | 11 | 41 | ||
Hungary | ||||
SEGMENT INFORMATION | ||||
Revenue | 30 | 25 | 64 | 62 |
Rest of World | ||||
SEGMENT INFORMATION | ||||
Revenue | $ 25 | $ 17 | $ 62 | $ 57 |
SEGMENT INFORMATION - Revenue f
SEGMENT INFORMATION - Revenue from major customers (Details) - Revenue - Customer Concentration | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Customer A | ||||
SEGMENT INFORMATION | ||||
Concentration risk percentage | 27% | 31% | 28% | 39% |
Customer B | ||||
SEGMENT INFORMATION | ||||
Concentration risk percentage | 26% | 19% | 26% | 17% |
Customer C | ||||
SEGMENT INFORMATION | ||||
Concentration risk percentage | 15% | 16% | 14% | 15% |
SEGMENT INFORMATION - Accounts
SEGMENT INFORMATION - Accounts receivable balances of major customers (Details) - Accounts Receivable - Credit Concentration Risk | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Customer A | ||
SEGMENT INFORMATION | ||
Concentration risk percentage | 32% | 32% |
Customer B | ||
SEGMENT INFORMATION | ||
Concentration risk percentage | 16% | 19% |
Customer C | ||
SEGMENT INFORMATION | ||
Concentration risk percentage | 22% | 25% |
SUBSEQUENT EVENTS - Equity Ince
SUBSEQUENT EVENTS - Equity Incentive Plan (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 9 Months Ended |
Oct. 31, 2023 | Sep. 30, 2023 | |
SUBSEQUENT EVENTS | ||
Service period | 3 years | |
Subsequent Events | RSUs | ||
SUBSEQUENT EVENTS | ||
Aggregate value of shares issuable upon vesting of restricted stock units | $ 20.8 | |
Granted shares | 582 | |
Service period | 3 years |