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COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes) | 6 Months Ended
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Mar. 29, 2014
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 23A Serangoon North Avenue 5, #01-01 K&S Corporate Headquarters, Singapore 554369 and Pte agreed to lease from the Landlord approximately 198,000 square feet (the “Initial Premises”) representing approximately 70% of the Building. The Building was completed on December 1, 2013. 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 the three and six months ended March 29, 2014 and March 30, 2013:
|  | Three months ended |  | Six months ended
(in thousands) |  | March 29, 2014 |  |  | March 30, 2013 |  |  | March 29, 2014 |  | March 30, 2013
Reserve for product warranty, beginning of period |  | $ | 887 |  |  | $ | 1,684 |  |  | $ | 1,194 |  |  | $ | 2,412 |
Provision for product warranty |  | 352 |  |  | (1 | ) |  | 500 |  |  | 64 |
Product warranty costs paid |  | (354 | ) |  | (520 | ) |  | (809 | ) |  | (1,313 | )
Reserve for product warranty, end of period |  | $ | 885 |  |  | $ | 1,163 |  |  | $ | 885 |  |  | $ | 1,163 |
Other Commitments and Contingencies The following table reflects obligations not reflected on the Consolidated Balance Sheet as of March 29, 2014:
|  |  |  |  | Payments due by fiscal year
(in thousands) |  | Total |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | thereafter
Inventory purchase obligation (1) |  | $ | 88,347 |  |  | $ | 88,347 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Operating lease obligations (2) |  | 30,347 |  |  | 1,793 |  |  | 3,240 |  |  | 3,151 |  |  | 2,908 |  |  | 19,255 |
Total |  | $ | 118,694 |  |  | $ | 90,140 |  |  | $ | 3,240 |  |  | $ | 3,151 |  |  | $ | 2,908 |  |  | $ | 19,255 |
(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 2018 (not including lease extension options, if applicable).
Pursuant to ASC No. 840, Leases, for lessee's involvement in asset construction, the Company was considered the owner of the Building during the construction phase of the ADL. This financing obligation is not reflected in the table above. The Company has recorded a financing obligation of $19.6 million on the balance sheet as at March 29, 2014. Concentrations There is no significant customer that represents 10% or more of our net revenue for the six months ended March 29, 2014 and March 30, 2013. The following table reflects significant customer concentrations as a percentage of total accounts receivable as of March 29, 2014 and March 30, 2013:
|  | As of
|  | March 29, 2014 |  | March 30, 2013
Haoseng Industrial Co., Ltd |  | 12.0 | % |  | 21.0 | %
STATS ChipPAC Ltd |  | * |  |  | 14.0 | %
* Represents less than 10% of total accounts receivable

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