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Balance Sheet Components | 12 Months Ended
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Oct. 03, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance Sheet Components | Balance Sheet Components The following tables show the Company’s balance sheet component details as of October 3, 2020 and September 28, 2019. Accounts Receivable Allowances 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 |
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 |
Inventories 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 |
Property and Equipment, Net 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 |
Depreciation expense was $34.9 million, $36.4 million and $39.4 million for fiscal 2020, 2019 and 2018, respectively. During fiscal 2020, 2019 and 2018, the Company abandoned and disposed of gross fixed assets of $18.5 million, $10.2 million and $35.8 million, with accumulated depreciation of $14.2 million, $9.3 million and $35.6 million, respectively. Disposals of fixed assets were recorded in operating expenses in the consolidated statements of operations and comprehensive loss and resulted in losses of $4.3 million, $0.8 million and $0.2 million for fiscal 2020, 2019 and 2018, respectively. For further detail regarding the property and equipment that was abandoned as part of the 2020 restructuring plan, refer to Note 15. Restructuring Plan. 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 |
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 |  |  |
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 |
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 |
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 |
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 |
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 |
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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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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