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REVENUE AND CONTRACT BALANCES
 6 Months Ended
Mar. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE AND CONTRACT BALANCES 11. 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 three and six months ended March 30, 2024 and April 1, 2023, the service revenue was not material.
The Company reports revenue based on its 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 14: Segment Information, for disclosure of revenue by segment and end markets.
Contract Balances
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 Condensed Balance Sheets within prepaid expenses and other current assets.
Our contract liabilities are primarily related to payments received 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 asset balances during the three and six months ended March 30, 2024 and April 1, 2023:
Three months endedSix months ended
(in thousands)March 30, 2024April 1, 2023March 30, 2024April 1, 2023
Contract assets, beginning of period$— $28,987 $10,181 $26,317 
Additions— 223 — 2,893 
Transferred to accounts receivable or collected— — (10,181)— 
Contract assets, end of period$— $29,210 $— $29,210 
The following table shows the changes in contract liability balances during the three and six months ended March 30, 2024 and April 1, 2023:
Three months endedSix months ended
(in thousands)March 30, 2024April 1, 2023March 30, 2024April 1, 2023
Contract liabilities, beginning of period$8,579 $7,781 $4,797 $3,160 
Revenue recognized(11,229)(9,276)(19,772)(16,546)
Additions9,316 8,051 21,641 19,942 
Contract liabilities, end of period$6,666 $6,556 $6,666 $6,556