COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes)

6 Months Ended

Apr. 03, 2021

Commitments and Contingencies Disclosure [Abstract]

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 six months ended April 3, 2021 and March 28, 2020:


	Three months ended				Six months ended
(in thousands)	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
Reserve for warranty, beginning of period	$	12,136	$	14,714	$	9,576	$	14,185
Provision for warranty	6,029		2,923		11,329		6,418
Utilization of reserve	(2,591)		(3,269)		(5,331)		(6,235)
Reserve for warranty, end of period	$	15,574	$	14,368	$	15,574	$	14,368

Other Commitments and Contingencies

The following table reflects obligations not reflected on the Consolidated Condensed Balance Sheet as of April 3, 2021:


			Payments due by fiscal year
(in thousands)	Total		2021		2022		2023		2024		2025		thereafter
Inventory purchase obligation (1)	$	549,024	$	239,818	$	309,206	$	—	$	—	$	—	$	—

(1)The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancellable and 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 six months ended April 3, 2021 and March 28, 2020:


	Six months ended
	April 3, 2021		March 28, 2020
ASE Technology Holding	21.7	%	*
Haoseng Industrial Co., Ltd (1)	10.0	%	*
Xinye (HK) Electronics. Co (1)	*		10.6	%

(1)Distributor of the Company's products.

* Represented less than 10% of total net revenue

The following table reflects significant customer concentrations as a percentage of total accounts receivable as of April 3, 2021 and March 28, 2020:


	As of
	April 3, 2021		March 28, 2020
Haoseng Industrial Co., Ltd (1)	16.4	%	12.3	%
Huatian Technology Group	13.8	%	*

Xinye (HK) Electronics. Co (1)	*		17.3	%

(1)Distributor of the Company's products.

* Represented less than 10% of total accounts receivable