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REVENUE AND CONTRACT LIABILITIES
 9 Months Ended
Jul. 03, 2021
Revenue from Contract with Customer [Abstract]  
REVENUE AND CONTRACT LIABILITIES REVENUE AND CONTRACT LIABILITIES
The Company recognizes revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. In general, the Company generates revenue from product sales, either directly to customers or to distributors. In determining whether a contract exists, we evaluate the terms of the agreement, the relationship with the customer or distributor and their ability to pay. Service revenue is generally recognized over time as the services are performed. For the three and nine months ended July 3, 2021, and June 27, 2020, the service revenue is not material. Please refer to Note 1: Basis of Presentation - Revenue Recognition, for disclosure on the Company's revenue recognition and Note 15: Segment Information for disclosure of revenue by reportable segments and disaggregated revenue.
Contract Liabilities
Our contract liabilities are primarily related to advance payments received from customers to secure product in future periods where we have received amounts in advance of satisfying performance obligations and are reported in the accompanying Consolidated Condensed Balance Sheets within accrued expenses and other current liabilities.
Contract liabilities increase as a result of receiving new advance payments from customers and decrease as revenue is recognized from product sales under advance payment arrangements upon satisfying the performance obligations.
The following table shows the changes in contract liability balances during the three and nine months ended July 3, 2021 and June 27, 2020:
Three months endedNine months ended
(in thousands)July 3, 2021June 27, 2020July 3, 2021June 27, 2020
Contract liabilities, beginning of period$5,788 $10,358 $2,958 $1,896 
Revenue recognized(23,725)(13,401)(43,993)(19,218)
Additions26,486 5,245 49,584 19,524 
Contract liabilities, end of period$8,549 $2,202 $8,549 $2,202