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Summary of significant accounting policies (Tables) | 12 Months Ended
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Sep. 29, 2018
Accounting Policies [Abstract] |
Summary of changes in allowance for doubtful accounts | The following table summarizes changes in the allowance for doubtful accounts for fiscal 2018, 2017 and 2016:
|  | 2018 |  | 2017 |  | 2016
(In thousands) |  |  |  |  |  |
Beginning balance |  | $ | 804 |  |  | $ | 726 |  |  | $ | 679 |
Increases |  | 635 |  |  | 449 |  |  | 962 |
Write-offs |  | (567 | ) |  | (371 | ) |  | (915 | )
Ending balance |  | $ | 872 |  |  | $ | 804 |  |  | $ | 726 |
Summary of changes In allowance for sales incentives | The following table summarizes the changes in the allowance for sales incentives for fiscal 2018, 2017 and 2016:
|  | 2018 |  | 2017 |  | 2016
(In thousands) |  |  |  |  |  |
Beginning balance |  | $ | 11,195 |  |  | $ | 8,913 |  |  | $ | 6,235 |
Charged to revenue |  | 90,246 |  |  | 65,879 |  |  | 34,627 |
Utilization of sales incentive allowance |  | (89,687 | ) |  | (63,597 | ) |  | (31,949 | )
Ending balance |  | $ | 11,754 |  |  | $ | 11,195 |  |  | $ | 8,913 |
Schedules of concentration of credit risk | As of September 29, 2018 and September 30, 2017, the Company’s customers that accounted for 10% or more of total accounts receivable, net, were as follows:
|  | Accounts receivable, net
|  | 2018 |  | 2017
Customer A |  | 31 | % |  | 26 | %
Customer B |  | 13 | % |  | 16 | %
Customer C |  | 11 | % |  | * |
* Accounts receivable was less than 10%. The Company’s customers that accounted for 10% or more of total revenue were as follows:
|  | Revenue
|  | Year Ended
|  | 2018 |  | 2017 |  | 2016
Customer A |  | 17 | % |  | 16 | % |  | 17 | %
Customer C |  | 10 | % |  | 12 | % |  | 11 | %
Schedule of property and equipment, depreciation | Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:
Computer hardware and software | 2-3 years
Furniture and fixtures | 3-5 years
Tooling and production line test equipment | 2-4 years
Leasehold improvements | 2-10 years
Product displays | 1-3 years
Property and equipment, net by country as of September 29, 2018 and September 30, 2017 were as follows:
| 2018 |  | 2017
(In thousands) |  |  |
United States | $ | 48,441 |  |  | $ | 59,738 |
China | 18,729 |  |  | 22,672 |
Other countries | 18,201 |  |  | 12,720 |
Property and equipment, net | $ | 85,371 |  |  | $ | 95,130 |
Property and equipment, net consist of the following:
| 2018 |  | 2017
(In thousands)
Computer hardware and software | $ | 46,385 |  |  | $ | 42,928 |
Furniture and fixtures | 9,696 |  |  | 9,840 |
Tooling and production line test equipment | 47,297 |  |  | 42,368 |
Leasehold improvements | 53,962 |  |  | 53,479 |
Product displays | 40,265 |  |  | 55,855 |
Total property and equipment | 197,605 |  |  | 204,470 |
Accumulated depreciation and amortization | (112,234 | ) |  | (109,340 | )
Property and equipment, net | $ | 85,371 |  |  | $ | 95,130 |
Scheudle of changes in deferred revenue | The following table summarizes the changes in the deferred revenue balances:
|  | 2018 |  | 2017 |  | 2016
(In thousands) |  |  |  |  |  |
Deferred revenue, beginning of period |  | $ | 45,567 |  |  | $ | 36,160 |  |  | $ | 27,373 |
Recognition of revenue included in beginning of period deferred revenue |  | (10,627 | ) |  | (6,878 | ) |  | (4,553 | )
Revenue deferred, net of revenue recognized on contracts in the respective period |  | 16,027 |  |  | 16,285 |  |  | 13,340 |
Deferred revenue, end of period |  | $ | 50,967 |  |  | $ | 45,567 |  |  | $ | 36,160 |
Schedule of expected recognition of deferred revenue | The Company expected the following recognition of deferred revenue as of September 29, 2018:
|  | For the fiscal years ending |  |
(In thousands) |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 and Beyond |  | Total
Revenue expected to be recognized |  | $ | 11,615 |  |  | $ | 10,905 |  |  | $ | 9,602 |  |  | $ | 7,756 |  |  | $ | 11,089 |  |  | $ | 50,967 |
Adopt of ASC 606- Impact to previously reported results | The adoption of ASC 606 impacted the Company’s previously reported amounts on the consolidated balance sheets as of October 1, 2016 as follows:
| 2016
(In thousands) | As previously reported |  | Impact of adoption |  | As adjusted
Accounts receivable, net | $ | 48,569 |  |  | $ | (3,262 | ) |  | $ | 45,307 |
Inventories, net | 53,553 |  |  | 9 |  |  | 53,562 |
Deferred costs of revenue | 27,478 |  |  | (27,478 | ) |  | — |
Other current assets | 8,850 |  |  | 587 |  |  | 9,437 |
Deferred tax assets | 6,207 |  |  | (3,663 | ) |  | 2,544 |
Deferred revenue | 96,696 |  |  | (60,536 | ) |  | 36,160 |
Other current liabilities | 4,599 |  |  | 1,936 |  |  | 6,535 |
Stockholders’ equity (deficit) | (53,581 | ) |  | 24,793 |  |  | (28,788 | )
The adoption of ASC 606 impacted the Company’s previously reported amounts on the consolidated statements of operations and comprehensive loss for the years ended October 3, 2015 and October 1, 2016 as follows:
| 2016 |  | 2015
(In thousands) | As previously reported |  | Impact of adoption |  | As adjusted |  | As previously reported |  | Impact of adoption |  | As adjusted
Net revenue | $ | 904,049 |  |  | $ | (2,765 | ) |  | $ | 901,284 |  |  | $ | 860,652 |  |  | $ | (17,128 | ) |  | $ | 843,524 |
Cost of revenue | 494,673 |  |  | 3,212 |  |  | 497,885 |  |  | 468,229 |  |  | (6,842 | ) |  | 461,387 |
Provision for income taxes | 2,930 |  |  | (286 | ) |  | 2,644 |  |  | 2,734 |  |  | 508 |  |  | 3,242 |
Net loss | (32,523 | ) |  | (5,691 | ) |  | (38,214 | ) |  | (57,983 | ) |  | (10,794 | ) |  | (68,777 | )

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