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Income Taxes (Tables) | 12 Months Ended
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Oct. 03, 2020
Income Tax Disclosure [Abstract] |
Schedule of income (loss) before provision for (benefit from) income taxes | The Company’s income (loss) before provision for income taxes for fiscal 2020, 2019 and 2018 were as follows:
| October 3, 2020 |  | September 28, 2019 |  | September 29, 2018
(In thousands)
Domestic | $ | (15,194) |  |  | $ | (858) |  |  | $ | 2,803 |
Foreign | (4,889) |  |  | (218) |  |  | (17,351) |
Loss before provision for income taxes | $ | (20,083) |  |  | $ | (1,076) |  |  | $ | (14,548) |
Schedule of provision for (benefit from) income taxes | Components of the provision for income taxes consisted of the following:
| October 3, 2020 |  | September 28, 2019 |  | September 29, 2018
(In thousands)
Current: |  |  |  |  |
U.S. Federal | $ | (1,388) |  |  | $ | 1,366 |  |  | $ | — |
U.S. State | 724 |  |  | 1,132 |  |  | 177 |
Foreign | 1,220 |  |  | 1,463 |  |  | 816 |
Total current | 556 |  |  | 3,961 |  |  | 993 |
Deferred: |  |  |  |  |
U.S. Federal | — |  |  | — |  |  | (168) |
U.S. State | — |  |  | — |  |  | — |
Foreign | (524) |  |  | (271) |  |  | 231 |
Total deferred | (524) |  |  | (271) |  |  | 63 |
Provision for (benefit from) income taxes | $ | 32 |  |  | $ | 3,690 |  |  | $ | 1,056 |
Schedule of deferred tax assets and liabilities | Components of the Company’s deferred income tax assets and liabilities are as follows:
| October 3, 2020 |  | September 28, 2019
(In thousands)
Deferred tax assets |  |  |
Accrued expenses and reserves | $ | 12,014 |  |  | $ | 12,582 |
Deferred revenue | 11,831 |  |  | 11,185 |
U.S. net operating loss carryforwards | 8,242 |  |  | 15,112 |
Foreign net operating loss carryforwards | 12,183 |  |  | 3,414 |
Tax credit carryforwards | 53,543 |  |  | 43,411 |
Stock-based compensation | 11,018 |  |  | 10,368 |
Right-of-Use Liability | 14,377 |  |  | — |
Amortization | 7,648 |  |  | 4,131 |
Depreciation | 1,101 |  |  | 672 |
Other | 603 |  |  | 453 |
Total deferred tax assets | 132,560 |  |  | 101,328 |
Valuation allowance | (113,939) |  |  | (95,088) |
Deferred tax assets, net of valuation allowance | 18,621 |  |  | 6,240 |
Deferred tax liabilities |  |  |
Tax accounting method change | (2,946) |  |  | (5,086) |
Right-of-Use Asset | (9,914) |  |  | — |
Amortization | (6,093) |  |  | — |
Depreciation | (187) |  |  | — |
Other | (115) |  |  | — |
Total deferred tax liabilities | (19,255) |  |  | (5,086) |
Net deferred tax assets (liabilities) | $ | (634) |  |  | $ | 1,154 |
Reported as |  |  |
Deferred tax assets | $ | 1,800 |  |  | $ | 1,154 |
Deferred tax liabilities | (2,434) |  |  | — |
Net deferred tax assets (liabilities) | $ | (634) |  |  | $ | 1,154 |
Summary of changes in valuation allowance | The following table summarizes changes in the valuation allowance for fiscal 2020, 2019 and 2018:
(In thousands) | October 3, 2020 |  | September 28, 2019 |  | September 29, 2018
Beginning balance | $ | 95,088 |  |  | $ | 72,380 |  |  | $ | 94,956 |
Increase (decrease) during the period | 18,851 |  |  | 22,708 |  |  | (22,576) |
Ending balance | $ | 113,939 |  |  | $ | 95,088 |  |  | $ | 72,380 |
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) | October 3, 2020 |  | September 28, 2019 |  | September 29, 2018
U.S. federal income taxes at statutory rate | $ | (4,217) |  |  | $ | (226) |  |  | $ | (3,570) |
U.S. state and local income taxes | (2,798) |  |  | (9,315) |  |  | (1,441) |
Foreign income tax rate differential | (75) |  |  | 129 |  |  | (53) |
Stock-based compensation | 869 |  |  | (2,399) |  |  | 4,025 |
Federal research tax credits | (8,012) |  |  | (8,418) |  |  | (4,333) |
Unrecognized federal tax benefits | 815 |  |  | (2,806) |  |  | 1,990 |
Change in tax rate | — |  |  | 1,161 |  |  | 25,725 |
Net Impact of GILTI | — |  |  | 239 |  |  | — |
BEAT | (781) |  |  | 781 |  |  | — |
Other | 598 |  |  | 822 |  |  | 259 |
Change in valuation allowance | 13,633 |  |  | 23,722 |  |  | (21,546) |
Provision for income taxes | $ | 32 |  |  | $ | 3,690 |  |  | $ | 1,056 |
Schedule of changes in unrecognized tax benefits | Change in unrecognized tax benefits as a result of uncertain tax positions are as follows:
| October 3, 2020 |  | September 28, 2019 |  | September 29, 2018
(In thousands) |  |
Beginning balance | $ | 12,527 |  |  | $ | 17,794 |  |  | $ | 13,780 |
Increase (decrease) - tax positions in prior periods | (768) |  |  | (8,226) |  |  | $ | 636 |
Increase (decrease) - tax positions in current periods | 2,962 |  |  | 2,959 |  |  | $ | 3,378 |
Ending balance | $ | 14,721 |  |  | $ | 12,527 |  |  | $ | 17,794 |

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