COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes)

12 Months Ended

Oct. 03, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONSWarranty ExpenseThe 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, including product part replacement, freight charges and related labor costs expected to be incurred to correct product failures during the warranty period.

The following table reflects the reserve for product warranty activity for fiscal 2020, 2019, and 2018:


	Fiscal
(in thousands)	2020		2019		2018
Reserve for warranty, beginning of period	$	14,185	$	14,474	$	13,796

Provision for warranty	14,004		12,140		12,603
Changes in the estimation of warranty reserve	(5,417)		—		—
Utilization of reserve	(13,196)		(12,429)		(11,925)
Reserve for warranty, end of period	$	9,576	$	14,185	$	14,474

For the change in estimation of warranty reserve, see Note 1 for details.

Other Commitments and Contingencies

The following table reflects obligations not reflected on the Consolidated Balance Sheet as of October 3, 2020:


			Payments due by fiscal year
(in thousands)	Total		2020		2021		2022		2023		Thereafter
Inventory purchase obligation (1)	$	152,832	$	152,832	$	—	$	—	$	—	$	—

(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.

Concentrations

The following tables reflect significant customer concentrations as a percentage of net revenue for fiscal 2020, 2019, and 2018:


	Fiscal
	2020	2019	2018
Haoseng Industrial Co., Ltd (1)	*	*	12.8	%

* Represents less than 10% of total net revenue

(1) Distributor of the Company's products

The following table reflects significant customer concentrations as a percentage of total accounts receivable as of October 3, 2020 and September 28, 2019:


	As of
	October 3, 2020		September 28, 2019
Forehope Electronic Co., Ltd	20.0	%	15.3	%
Regent Manner Limited	10.3	%	*
Xinye Electronics Co. (1)	*		16.0	%
Super Power International Ltd. (1)	*		13.5	%

* Represents less than 10% of total accounts receivable

(1) Distributor of the Company's products