v3.26.1
Provisions
 12 Months Ended
Dec. 31, 2025
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract]  
Provisions Provisions
Post-
employment
benefits		Other provisionsTotalCurrentNon current
 (in thousands)
At January 1, 2023$705 $1,568 $2,273 $77 $2,196 
Arising (released) during the year107 257 364 — — 
Released (used) during the year(48)(76)(124)— — 
Released (unused) during the year— (291)(291)— — 
At December 31, 2023764 1,458 2,222 — 2,222 
Arising (released) during the year132 927 1,059 — — 
Released (used) during the year— — — — — 
Released (unused) during the year(268)(850)(1,118)— — 
At December 31, 2024628 1,535 2,163 763 1,400 
Arising (released) during the year477 1,434 1,911 — — 
ACP retirement provision at acquisition date593 — 593 — — 
Released (used) during the year— (333)(333)— — 
Released (unused) during the year(417)(351)(768)— — 
At December 31, 2025$1,281 $2,285 $3,566 $1,454 $2,112 
Post-employment benefits
The provision for post-employment benefits is for the defined benefit retirement indemnity required to be paid to French and Swiss employees if they retire as a Company employee. Following the acquisition of ACP (see Note 3), the opening balance of the provision for post-employment benefits was recognized in accordance with the purchase accounting requirements, reflecting the estimated present value of ACP’s obligations as of the acquisition date. This balance was determined based on ACP’s historical actuarial assumptions.
The amount for the French plan (service and finance cost) in 2025 was an income of $19,000 (2024: expenses of $61,000 and 2023: income of $13,000). The comprehensive income (loss) for 2025 includes $30,000 of actuarial gain (actuarial losses of $39,000 in 2024 and $46,000 in 2023. One employee retired in 2023 and no employee retired in either 2025 or 2024.
In 2024, following the transfer of French employees to Qualcomm on October 1, 2024, the related provision for the retirement indemnity of $237,000 was released and has been recognized as part of the gain on sale of the assets.
The main assumptions used in the calculation of the French post-employment benefits are the following:
202320242025
Discount rate3.20%3.35%3.50%
Salary increaseBetween 1.5% and 3.5%Between 1.5% and 3.5%Between 1.5% and 3.5%
Retirement age65-67years65-67 years65-67 years
Turnover: depending on the seniorityDecrease by age from 2% for directors, Vice presidents and managers and from 20% for other employees. 0% for executive teamDecrease by age from 2% for directors, Vice presidents and managers and from 20% for other employees. 0% for executive teamDecrease by age from 2% for directors, Vice presidents and managers and from 20% for other employees. 0% for executive team
In Switzerland, employers are obliged to provide a minimum defined benefit pension plan for the employees. Funding is granted there by means of defined savings contributions on individual retirement assets implementing a guaranteed interest rate (1.00% for 2017-2023 and 1.25% for 2024-2026) and a fixed conversion rate for old age pensions of the retirement asset (6.8% at the age of 65 years). The plans are financed by contributions of both employees and employer. Contributions are defined by
the plan regulations and cannot be decreased without amending the plan regulations. In mandatory pension funds the employer has to pay at least as much as the employees, which is the case for the Company. Swiss second-pillar pension plans generally do not foresee reimbursement rights. Contributions are made to a separately administered fund that is not managed by the Company.
Vested benefit lump sums have to be paid to leaving employees in order to preserve their individual asset for retirement in another pension plan. Lump sums from previous pension plans must be brought into the pension fund whenever a new employee joins the pension plan. Therefore, asset and liability transfer among Swiss pension funds should be taken into account to guarantee a fair projection of future liabilities or assets.
The main assumptions used in the calculation of the Swiss post-employment benefits are the following:
2025
Discount rate (DR)1.30%
Interest rate (IR) for projecting savings capital1.75%
Long-term expected rate of salary increase (SI)1.50%
Rate of pension increase (PI)0.00%
Long-term expected inflation rate (social security increase rate)1.00%
Long term rate of mortality improvement (LTR)1.25%
Capital option upon retirement30.00%
Technical basesBVG/LPP 2020 Generation Tables
Probability of disability85% BVG/LPP 2020
Model for the mortality projectionCMI 2023
Plan Assets at Fair Value for Switzerland are:
2025
Cash and cash equivalents$100,361 CHF79,557 
Equity instruments1,522,154 1,206,622 
Debt Instruments (eg. Bonds)1,296,339 1,027,617 
Real estate723,441 573,477 
Others539,444 427,621 
Total plan assets as at December 31$4,181,739 CHF3,314,894 
Reconciliation of defined benefit obligation
2025
Defined benefit obligation at Dec. 31$4,348,071 CHF3,939,184 
Interest expense on defined benefit obligation46,230 38,355 
Current service cost (employer)180,842 150,038 
Contributions by plan participants172,442 143,069 
Benefits (paid) / deposited(603,125)(500,391)
Administration cost (excl. cost for managing plan assets)2,374 1,970 
Actuarial (gain) / loss on defined benefit obligation(131,148)(108,809)
Foreign exchange impact605,713 — 
Defined benefit liability at Dec. 31$4,621,399 CHF3,663,416 
Reconciliation of fair value of plan assets:
2025
Fair value of plan assets at Jan. 1$3,750,460 CHF3,397,771 
Interest income on the plan assets39,662 32,906 
Contribution by the employer172,442 143,069 
Contribution by plan participants172,442 143,069 
Benefits (paid) / deposited(603,125)(500,391)
Return on plan assets excl. interest income118,687 98,470 
Foreign exchange impact531,171 — 
Fair value of plan assets at Dec. 31$4,181,739 CHF3,314,894 
Sensitivity analysis (DBO = Defined benefit obligation, SC = Service cost employer):
Assumption ChangeImpact on DBO in 2025
DBO at 31.12. with DR -0.25%$5,180,090 CHF4,106,294 
DBO at 31.12. with DR +0.25%$4,775,428 CHF3,785,516 
DBO at 31.12. with IR -0.25%$4,880,901 CHF3,869,125 
DBO at 31.12. with IR +0.25%$5,060,497 CHF4,011,492 
DBO at 31.12. with SI -0.25%$4,941,068 CHF3,916,820 
DBO at 31.12. with SI +0.25%$5,000,890 CHF3,964,241 
DBO at 31.12. with life expectancy +1 year$5,038,947 CHF3,994,409 
DBO at 31.12. with life expectancy -1 year$4,899,515 CHF3,883,880 
DBO at 31.12. with PI -0.25%$4,876,804 CHF3,865,877 
DBO at 31.12. with PI +0.25%$5,066,615 CHF4,016,342 
SC of next year with DR +0.25% 138'072 127'117$174,178 CHF138,072 
SC of next year with IR +0.25% 155'262 142'156$195,863 CHF155,262 
The expected amount of contributions to be made in 2026 is CHF115,985 or $148,229.
Other provisions
At December 31, 2023, 2024 and 2025, “Other provisions” include primarily estimated royalty payments assessed on sales of modules to holders of patents which may be deemed as essential under the requirements of the LTE standard. The royalty provision is based on management’s judgment, taking into consideration the published royalty rates, various legal decisions, articles, reports and industry discussions on the subject which were available, and is recorded in the cost of product revenue. The Company’s modules are considered as final products incorporating the full LTE function, and therefore may have royalties assessed on their sale; no royalties are accrued on the sales of chips as the full LTE functionality is not included in the chip and it is not current industry practice to license standard-essential patents at the component level.