INCOME TAXES |
9 Months Ended |
|---|---|
Sep. 27, 2025 | |
| 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. Prior to the Tax Deconsolidation, the income tax benefit (provision) included in these condensed consolidated financial statements had been calculated using the separate return method, as if the Company had filed its own tax returns. Following the Tax Deconsolidation, Mobileye becomes a standalone taxpayer from a U.S. federal and applicable state income tax perspective for the period starting July 12, 2025. As such, the Company now calculates and report its U.S. federal and applicable state income tax liabilities as a standalone taxpayer. Additionally, the Tax Deconsolidation results in an adjustment to the Company’s deferred income tax assets and liabilities, primarily with respect to its net operating losses, reflecting attributes that the Company will retain as a result of its status as a standalone taxpayer. Most of the net operating losses were utilized by the Company’s Parent on its historic income tax returns. These deferred adjustments are offset with a change in deferred tax asset valuation allowance. As the Company has jurisdictions that have sustained recent losses, the historical valuation allowance position is maintained on net deferred tax assets for which no benefit can be currently realized. Provision for income tax in the nine months ended September 27, 2025 was $13 million compared to a benefit for income tax of $76 million in the nine months ended September 28, 2024. The provision for income tax in the three months ended September 27, 2025, was $4 million compared to a benefit for income tax of $78 million in the three months ended September 28, 2024. In both periods, the change is mainly due to the deferred tax effect of $82 million attributed to goodwill impairment of the Mobileye reporting unit which was recognized in the prior year period. |