XML 33 R22.htm IDEA: XBRL DOCUMENT v3.20.2
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes)
 9 Months Ended
Jun. 27, 2020
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS
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, including product part replacement, freight charges and labor costs incurred in correcting product failures during the warranty period.
The following table reflects the reserve for warranty activity for the three and nine months ended June 27, 2020 and June 29, 2019: 
 
Three months ended
 
Nine months ended
(in thousands)
June 27, 2020

 
June 29, 2019
 
June 27, 2020
 
June 29, 2019
Reserve for warranty, beginning of period
$
14,368

 
$
13,885

 
$
14,185

 
$
14,475

Provision for warranty
3,331

 
3,143

 
9,749

 
8,874

Utilization of reserve
(3,189
)
 
(3,073
)
 
(9,424
)
 
(9,394
)
Reserve for warranty, end of period
$
14,510

 
$
13,955

 
$
14,510

 
$
13,955


Other Commitments and Contingencies
The following table reflects obligations not reflected on the Consolidated Condensed Balance Sheet as of June 27, 2020:
 
 

 
Payments due by fiscal year
(in thousands)
Total
 
2020
 
2021
 
2022
 
2023
 
2024
 
thereafter
Inventory purchase obligation (1)
$
125,803

 
$
125,803

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

(1)
The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancellable, however, some orders impose varying penalties and charges in the event of cancellation.
Concentrations
The following table reflects significant customer concentrations as a percentage of net revenue for the nine months ended June 27, 2020 and June 29, 2019:
 
Nine months ended
 
June 27, 2020
 
June 29, 2019
Micron Technology, Inc.
*
 
10.9
%

* Represented less than 10% of total net revenue
The following table reflects significant customer concentrations as a percentage of total accounts receivable as of June 27, 2020 and June 29, 2019:
 
As of
 
June 27, 2020
 
June 29, 2019
Xinye (HK) Electronics. Co (1)
14.9
%
 
*

Haoseng Industrial Company Limited (1)
13.1
%
 
*

Super Power International (1)
*

 
15.8
%
Forehope Electronic (Ningbo) Co Ltd
*

 
14.4
%
Micron Technology, Inc.
*

 
10.2
%

(1)
Distributor of the Company's products.
* Represented less than 10% of total accounts receivable