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Income taxes (Tables) | 12 Months Ended
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Sep. 28, 2019
Income Tax Disclosure [Abstract] |
Schedule of income (loss) before provision for (benefit from) income taxes | The Company’s loss before provision for (benefit from) income taxes for fiscal 2019, 2018 and 2017 were as follows:
| 2019 |  | 2018 |  | 2017
(In thousands)
Domestic | $ | (858 | ) |  | $ | 2,803 |  |  | $ | (25,005 | )
Foreign | (218 | ) |  | (17,351 | ) |  | 8,497 |
Loss before provision for (benefit from) income taxes | $ | (1,076 | ) |  | $ | (14,548 | ) |  | $ | (16,508 | )
Schedule of provision for (benefit from) income taxes | Components of the provision for (benefit from) income taxes consisted of the following:
| 2019 |  | 2018 |  | 2017
(In thousands)
Current: |  |  |  |  |
U.S. Federal | $ | 1,366 |  |  | $ | — |  |  | $ | — |
U.S. State | 1,132 |  |  | 177 |  |  | 62 |
Foreign | 1,463 |  |  | 816 |  |  | (3,791 | )
Total current | 3,961 |  |  | 993 |  |  | (3,729 | )
Deferred: |  |  |  |  |
U.S. Federal | — |  |  | (168 | ) |  | — |
U.S. State | — |  |  | — |  |  | — |
Foreign | (271 | ) |  | 231 |  |  | 1,438 |
Total deferred | (271 | ) |  | 63 |  |  | 1,438 |
Provision for (benefit from) income taxes | $ | 3,690 |  |  | $ | 1,056 |  |  | $ | (2,291 | )
Schedule of deferred tax assets and liabilities | Components of the Company’s net deferred income tax assets (liabilities) are as follows:
| 2019 |  | 2018
(In thousands)
Deferred tax assets |  |  |
Accrued expenses and reserves | $ | 12,582 |  |  | $ | 5,639 |
Deferred revenue | 11,185 |  |  | 10,317 |
U.S. net operating loss carryforwards | 15,112 |  |  | 18,385 |
Foreign net operating loss carryforwards | 3,414 |  |  | 5,625 |
Tax credit carryforwards | 43,411 |  |  | 22,969 |
Stock-based compensation | 10,368 |  |  | 7,237 |
Amortization | 4,131 |  |  | 3,237 |
Depreciation | 672 |  |  | — |
Other | 453 |  |  | 427 |
Total deferred tax assets | 101,328 |  |  | 73,836 |
Valuation allowance | (95,088 | ) |  | (72,380 | )
Deferred tax assets, net of valuation allowance | 6,240 |  |  | 1,456 |
Deferred tax liabilities |  |  |
Tax accounting method change | (5,086 | ) |  | — |
Depreciation | — |  |  | (515 | )
Total deferred tax liabilities | (5,086 | ) |  | (515 | )
Net deferred tax assets | $ | 1,154 |  |  | $ | 941 |
Summary of changes in valuation allowance | The following table summarizes changes in the valuation allowance for fiscal 2019, 2018 and 2017:
(In thousands) | 2019 |  | 2018 |  | 2017
Beginning balance | $ | 72,380 |  |  | $ | 94,956 |  |  | $ | 95,882 |
Increase (decrease) during the period | 22,708 |  |  | (22,576 | ) |  | (926 | )
Ending balance | $ | 95,088 |  |  | $ | 72,380 |  |  | $ | 94,956 |
Schedule of effective income tax rate reconciliation | Reconciliation of U.S. statutory federal income taxes to the Company’s provision for (benefit from) income taxes is as follows:
(In thousands) | 2019 |  | 2018 |  | 2017
U.S. federal income taxes at statutory rate | $ | (226 | ) |  | $ | (3,570 | ) |  | $ | (5,778 | )
U.S. state and local income taxes | (9,315 | ) |  | (1,441 | ) |  | (2,454 | )
Foreign income tax rate differential | 129 |  |  | (53 | ) |  | (1,101 | )
Dutch tax settlement | — |  |  | — |  |  | 7,361 |
Stock-based compensation | (2,399 | ) |  | 4,025 |  |  | 1,503 |
Federal research tax credits | (8,418 | ) |  | (4,333 | ) |  | (2,978 | )
Unrecognized federal tax benefits | (2,806 | ) |  | 1,990 |  |  | 1,191 |
Change in tax rate | 1,161 |  |  | 25,725 |  |  | — |
Net Impact of GILTI | 239 |  |  | — |  |  | — |
BEAT | 781 |  |  | — |  |  | — |
Other | 822 |  |  | 259 |  |  | 1,197 |
Change in valuation allowance | 23,722 |  |  | (21,546 | ) |  | (1,232 | )
Provision for (benefit from) income taxes | $ | 3,690 |  |  | $ | 1,056 |  |  | $ | (2,291 | )
Schedule of changes in unrecognized tax benefits | Change in unrecognized tax benefits as a result of uncertain tax positions are as follows:
| 2019 |  | 2018
(In thousands)
Beginning balance | $ | 17,794 |  |  | $ | 13,780 |
Increase (decrease) - tax positions in prior periods | (8,226 | ) |  | 636 |
Increase (decrease) - tax positions in current periods | 2,959 |  |  | 3,378 |
Ending balance | $ | 12,527 |  |  | $ | 17,794 |

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