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Balance Sheet Components (Tables) | 12 Months Ended
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Oct. 03, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Summary of changes in allowance for doubtful accounts | The following table summarizes changes in the allowance for doubtful accounts for fiscal 2020, 2019 and 2018:
| October 3, 2020 |  | September 28, 2019 |  | September 29, 2018
(In thousands) |  |  |  |  |
Beginning balance | $ | 1,255 |  |  | $ | 872 |  |  | $ | 804 |
Increases | 1,127 |  |  | 1,034 |  |  | 635 |
Write-offs | (1,075) |  |  | (651) |  |  | (567) |
Ending balance | $ | 1,307 |  |  | $ | 1,255 |  |  | $ | 872 |
Summary of changes in allowance for sales incentives | The following table summarizes the changes in the allowance for sales incentives for fiscal 2020, 2019 and 2018:
| October 3, 2020 |  | September 28, 2019 |  | September 29, 2018
(In thousands) |  |  |  |  |
Beginning balance | $ | 20,051 |  |  | $ | 11,754 |  |  | $ | 11,195 |
Charged to revenue | 108,843 |  |  | 87,703 |  |  | 90,246 |
Utilization of sales incentive allowance | (111,379) |  |  | (79,406) |  |  | (89,687) |
Ending balance | $ | 17,515 |  |  | $ | 20,051 |  |  | $ | 11,754 |
Schedule of inventories, net | Inventories, net, consist of the following:
| October 3, 2020 |  | September 28, 2019
(In thousands)
Finished goods | $ | 172,184 |  |  | $ | 207,723 |
Components | 8,646 |  |  | 12,061 |
Inventories | $ | 180,830 |  |  | $ | 219,784 |
Schedule of property and equipment | 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 October 3, 2020 and September 28, 2019 were as follows:
| October 3, 2020 |  | September 28, 2019
(In thousands) |  |  |
United States | $ | 35,372 |  |  | $ | 48,370 |
China | 17,624 |  |  | 16,539 |
Other countries | 7,788 |  |  | 13,230 |
Property and equipment, net | $ | 60,784 |  |  | $ | 78,139 |
Property and equipment, net consist of the following:
| October 3, 2020 |  | September 28, 2019
(In thousands)
Computer hardware and software | $ | 45,798 |  |  | $ | 47,775 |
Furniture and fixtures | 8,239 |  |  | 9,594 |
Tooling and production line test equipment | 67,495 |  |  | 54,536 |
Leasehold improvements | 51,102 |  |  | 58,944 |
Product displays | 48,925 |  |  | 45,672 |
Total property and equipment | 221,559 |  |  | 216,521 |
Accumulated depreciation and amortization | (160,775) |  |  | (138,382) |
Property and equipment, net | $ | 60,784 |  |  | $ | 78,139 |
Schedule of goodwill | The following table presents details of the Company's goodwill for the year ended October 3, 2020:
| Goodwill
(In thousands) |
Balance as of September 28, 2019 | $ | 1,005 |
Goodwill acquired | 14,282 |
Purchase price adjustment | 258 |
Balance as of October 3, 2020 | $ | 15,545 |
Schedule of intangible assets | The following table reflects the changes in the net carrying amount of the components of intangible assets associated with the Company's acquisition activity:
| October 3, 2020
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted-Average Remaining Life
(In thousands, except weighted-average remaining life) |  |  |  |  |  |  |
Technology | $ | 7,780 |  |  | (1,509) |  |  | $ | 6,271 |  |  | 3.55
Other | 39 |  |  | (16) |  |  | 23 |  | 1.17
Total finite-lived intangible assets | 7,819 |  |  | (1,525) |  |  | 6,294 |  |  | 3.54
In-process research and development and other intangible assets not subject to amortization | 20,100 |  |  | — |  |  | 20,100 |  |  |
Total intangible assets | $ | 27,919 |  |  | $ | (1,525) |  |  | $ | 26,394 |  |  |
Summary of estimated future amortization expense | The following table summarizes the estimated future amortization expense of the Company's intangible assets as October 3, 2020:
Fiscal years ending | Future Amortization Expense
(In thousands) |
2021 | $ | 1,938 |
2022 | 1,922 |
2023 | 1,245 |
2024 | 1,020 |
2025 and thereafter | 169 |
Total future amortization expense | $ | 6,294 |
Schedule of accrued expenses | Accrued expenses consisted of the following:
| October 3, 2020 |  | September 28, 2019
(In thousands)
Accrued advertising and marketing | $ | 10,609 |  |  | $ | 25,662 |
Accrued taxes | 6,252 |  |  | 4,388 |
Accrued inventory | 2,843 |  |  | 6,494 |
Accrued manufacturing, logistics and product development | 9,753 |  |  | 14,783 |
Accrued general and administrative | 10,068 |  |  | 12,455 |
Accrued restructuring | 1,062 |  |  | — |
Other accrued payables | 4,462 |  |  | 6,074 |
Total accrued expenses | $ | 45,049 |  |  | $ | 69,856 |
Summary of changes in deferred revenue | The following table presents the changes in the Company's deferred revenue balances:
| October 3, 2020 |  | September 28, 2019 |  | September 29, 2018
(In thousands) |  |  |  |  |
Deferred revenue, beginning of period | $ | 56,449 |  |  | $ | 50,967 |  |  | $ | 45,567 |
Recognition of revenue included in beginning of period deferred revenue | (13,052) |  |  | (11,934) |  |  | (10,627) |
Revenue deferred, net of revenue recognized on contracts in the respective period | 18,992 |  |  | 17,416 |  |  | 16,027 |
Deferred revenue, end of period | $ | 62,389 |  |  | $ | 56,449 |  |  | $ | 50,967 |
Schedule of expected recognition of deferred revenue | The Company expects the following recognition of deferred revenue as of October 3, 2020:
| For the fiscal years ending |  |
(In thousands) | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 and Beyond |  | Total
Revenue expected to be recognized | $ | 15,304 |  |  | $ | 13,264 |  |  | $ | 11,337 |  |  | $ | 9,286 |  |  | $ | 13,198 |  |  | $ | 62,389 |
Schedule of other current liabilities | Other current liabilities consist of the following:
| October 3, 2020 |  | September 28, 2019
(In thousands) |  |  |
Reserve for returns | $ | 14,195 |  |  | $ | 12,110 |
Short-term operating lease liabilities | 10,910 |  |  | — |
Product warranty liability | 3,628 |  |  | 3,254 |
Other | 2,417 |  |  | 2,184 |
Total other current liabilities | $ | 31,150 |  |  | $ | 17,548 |
Schedule of warranty liability | The following table presents the changes in the Company’s warranty liability for the fiscal years ended October 3, 2020 and September 28, 2019:
| October 3, 2020 |  | September 28, 2019
(In thousands) |  |  |
Warranty liability, beginning of period | $ | 3,254 |  |  | $ | 2,450 |
Provision for warranties issued during the period | 12,711 |  |  | 12,795 |
Settlements of warranty claims during the period | (12,337) |  |  | (11,991) |
Warranty liability, end of period | $ | 3,628 |  |  | $ | 3,254 |

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