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COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes) | 12 Months Ended
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Sep. 28, 2013
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS Agreement to Develop and Lease On May 7, 2012, Pte entered into the ADL and a Lease Agreement with DBS Trustee Limited as trustee of the Landlord. Pursuant to the ADL, the Landlord agreed to develop a building at Lot 17622A Pt Mukim 18 at Serangoon North Avenue 5 (the “Building”) and Pte agreed to lease from the Landlord 198,134 square feet (the “Initial Premises”), representing approximately 69% of the Building. The Building is expected to be completed and ready for occupancy in the first quarter of fiscal 2014. Warranty Expense The Company's equipment is generally shipped with a one-year warranty against manufacturing defects. The Company establishes reserves for estimated warranty expense when revenue for the related equipment is recognized. The reserve for estimated warranty expense is based upon historical experience and management's estimate of future warranty costs. The following table reflects the reserve for product warranty activity for fiscal 2013, 2012, and 2011:
|  | Fiscal
(in thousands) |  | 2013 |  | 2012 |  | 2011
Reserve for product warranty, beginning of period |  | $ | 2,412 |  |  | $ | 2,245 |  |  | $ | 2,657 |
Provision for product warranty |  | 1,093 |  |  | 3,521 |  |  | 2,914 |
Product warranty costs paid |  | (2,311 | ) |  | (3,354 | ) |  | (3,326 | )
Reserve for product warranty, end of period |  | $ | 1,194 |  |  | $ | 2,412 |  |  | $ | 2,245 |
Other Commitments and Contingencies The following table reflects obligations not reflected on the Consolidated Balance Sheet as of September 28, 2013:
|  |  |  |  | Payments due by fiscal year
(in thousands) |  | Total |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | thereafter
Inventory purchase obligation (1) |  | $ | 57,229 |  |  | $ | 57,229 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Operating lease obligations (2) |  | 31,211 |  |  | 3,700 |  |  | 3,380 |  |  | 2,761 |  |  | 2,364 |  |  | 19,006 |
Total |  | $ | 88,440 |  |  | $ | 60,929 |  |  | $ | 3,380 |  |  | $ | 2,761 |  |  | $ | 2,364 |  |  | $ | 19,006 |
(1) | The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancelable and a portion may have varying penalties and charges in the event of cancellation.
(2) | The Company has minimum rental commitments under various leases (excluding taxes, insurance, maintenance and repairs, which are also paid by the Company) primarily for various facility and equipment leases, which expire periodically through 2023 (not including lease extension options, if applicable).
Pursuant to ASC No. 840, Leases, for lessee's involvement in asset construction, the Company is considered the owner of the Building during the construction phase of the ADL. As of September 28, 2013, the Company has recorded a financing obligation of $19.4 million related to the Building and is expected to record an additional $0.6 million over the construction term, which is expected to be completed in the next twelve months. This financing obligation is not reflected in the table above. Under the lease agreement contemplated by the ADL, (the “Lease Agreement”), the term for the rental of the Initial Premises is expected to be 10 years (the “Initial Term”). Pte will have the option to renew for two additional ten-year terms. The combined annual rent and service charge for the Initial Term will range between approximately $4.0 to $5.0 million Singapore dollars. Subject to renting a minimum amount of space, Pte will have a right of first refusal for all space that becomes available in the Building, and the Landlord has agreed to make available a certain amount of additional space for rental at Pte's option which may be exercised at certain points during the second half of the Initial Term. Subject to renting a minimum amount of space for a certain period, Pte will have partial surrender rights. In addition, Pte will have termination rights after renting the Initial Premises for a certain period of time. The Lease Agreement is not in effect as of the date of this report and is not reflected in the above table. Concentrations The following tables reflect significant customer concentrations as a percentage of net revenue for fiscal 2013, 2012, and 2011:
|  | Fiscal
|  | 2013 |  | 2012 |  | 2011
Siliconware Precision Industries Ltd. |  | 11.0 | % |  | 14.9 | % |  | * |
Advanced Semiconductor Engineering |  | * |  |  | 22.4 | % |  | 21.8 | %
* Represents less than 10% of net revenue The following table reflects significant customer concentrations as a percentage of total accounts receivable as of September 28, 2013 and September 29, 2012:
|  | As of
|  | September 28, 2013 |  |  | September 29, 2012 |
Siliconware Precision Industries Ltd. |  | 19.5 | % |  | 31.0 | %
STATS ChipPAC Ltd |  | 14.5 | % |  | * |
Haoseng Industrial Co., Ltd |  | 11.9 | % |  | 15.0 | %
* Represents less than 10% of total accounts receivable

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