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REVENUE AND CONTRACT BALANCES
 12 Months Ended
Sep. 28, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE AND CONTRACT BALANCES 12. REVENUE AND CONTRACT BALANCES
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 fiscal years ended September 28, 2024, September 30, 2023 and October 1, 2022, service revenue is not material. Please refer to Note 1: Basis of Presentation — Revenue Recognition, for additional disclosure on the Company’s revenue recognition policy.
The Company reports revenue based on our reportable segments and end markets, which provides information about how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Please refer to Note 15: Segment Information, for disclosure of revenue by segments and end markets.
Contract Balances
As of
(in thousands)September 28, 2024September 30, 2023October 1,
2022
Contract assets
$— $10,181 $26,317 
Contract liabilities
$18,646 $4,797 $3,160 
Our contract assets relate to our rights to consideration for revenue with collection dependent on events other than the passage of time, such as the achievement of specified payment milestones. The contract assets will be transferred to net account receivables as our right to consideration for these contract assets become unconditional. Contracts assets are reported in the accompanying Consolidated Balance Sheets within prepaid expenses and other current assets. The change in contract assets during the fiscal year ended September 28, 2024 was mainly due to $10.2 million of contract assets reclassified to accounts receivable, net, as our right to consideration for these contract assets became unconditional.
Our contract liabilities are primarily related to payments received in advance of satisfying performance obligations and obligations from customer credit programs, and are reported in the accompanying Consolidated Balance Sheets within accrued expenses and other current liabilities.
Revenue recognized during fiscal year 2024 that was included in deferred revenue as of September 30, 2023 was $4.5 million. Revenue recognized during fiscal year 2023 that was included in deferred revenue as of October 1, 2022 was $2.9 million.