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Balance sheet components | 9 Months Ended
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Jun. 27, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance sheet components | Balance sheet components Accounts receivable, net of allowances Accounts receivable, net of allowances, consist of the following:
| June 27, 2020 |  | September 28, 2019
(In thousands) |  |  |
Accounts receivable | $ | 65,450 |  |  | $ | 124,049 |
Allowance for doubtful accounts | (1,369) |  |  | (1,255) |
Allowance for sales incentives | (13,723) |  |  | (20,051) |
Accounts receivable, net of allowances | $ | 50,358 |  |  | $ | 102,743 |
Inventories Inventories consist of the following:
| June 27, 2020 |  | September 28, 2019
(In thousands) |  |  |
Finished goods | $ | 78,727 |  |  | $ | 207,723 |
Component parts | 9,714 |  |  | 12,061 |
Inventories | $ | 88,441 |  |  | $ | 219,784 |
The Company writes down inventory as a result of excess and obsolete inventories, or when it believes that the net realizable value of inventories is less than the carrying value. Goodwill The following table presents details of the Company's goodwill for the nine months ended June 27, 2020:
(In thousands) |
Balance as of September 28, 2019 | $ | 1,005 |
Goodwill acquired | 14,282 |
Purchase price adjustment | 258 |
Balance as of June 27, 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:
| June 27, 2020 |  |  |  |  |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted-Average Remaining Life
(In thousands, except weighted-average remaining life) |  |  |  |  |  |  |
Technology | $ | 7,583 |  |  | $ | (929) |  |  | $ | 6,654 |  |  | 3.80
Other | 39 |  |  | (11) |  |  | 28 |  |  | 1.42
Total finite-lived intangible assets | 7,622 |  |  | (940) |  |  | 6,682 |  |  | 3.79
In-process research and development and other intangible assets not subject to amortization | 20,100 |  |  | — |  |  | 20,100 |  |  |
Total intangible assets | $ | 27,722 |  |  | $ | (940) |  |  | $ | 26,782 |  |  |
The following table summarizes estimated future amortization expense of the Company's intangible assets as of June 27, 2020:
Fiscal years ending | Future Amortization Expense
(In thousands) |
Remainder of fiscal 2020 | $ | 475 |
2021 | 1,899 |
2022 | 1,883 |
2023 | 1,235 |
2024 | 1,020 |
2025 and thereafter | 170 |
Total future amortization expense | $ | 6,682 |
Accrued expenses Accrued expenses consist of the following:
| June 27, 2020 |  | September 28, 2019
(In thousands) |  |  |
Accrued advertising and marketing | $ | 10,180 |  |  | $ | 25,662 |
Accrued taxes | 9,861 |  |  | 4,388 |
Accrued inventory | 2,844 |  |  | 6,494 |
Accrued manufacturing, logistics and product development | 13,654 |  |  | 14,783 |
Accrued general and administrative expenses | 6,927 |  |  | 12,455 |
Other accrued payables | 4,284 |  |  | 6,074 |
Total accrued expenses | $ | 47,750 |  |  | $ | 69,856 |
Deferred revenue Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue primarily relates to revenue allocated to unspecified software upgrades and platform services. The following table presents the changes in the Company’s deferred revenue for the nine months ended June 27, 2020 and June 29, 2019:
| June 27, 2020 |  | June 29, 2019
(In thousands) |  |  |
Deferred revenue, beginning of period | $ | 56,449 |  |  | $ | 50,967 |
Recognition of revenue included in beginning of period deferred revenue | (10,210) |  |  | (8,827) |
Revenue deferred, net of revenue recognized on contracts in the respective period | 14,126 |  |  | 13,966 |
Deferred revenue, end of period | $ | 60,365 |  |  | $ | 56,106 |
The Company expects the following recognition of deferred revenue as of June 27, 2020:
| For the fiscal years ending |  |  |  |  |  |  |  |  |  |
| 2020 |  | 2021 |  |  | 2022 |  | 2023 |  | 2024 and Beyond |  | Total
(In thousands) |  |  |  |  |  |  |  |  |  |  |
Deferred revenue expected to be recognized | $ | 3,865 |  |  | $ | 14,271 |  |  | $ | 12,425 |  |  | $ | 10,497 |  |  | $ | 19,307 |  |  | $ | 60,365 |
Other current liabilities Other current liabilities consist of the following:
| June 27, 2020 |  | September 28, 2019
(In thousands) |  |  |
Reserve for returns | $ | 12,284 |  |  | $ | 12,110 |
Short-term operating lease liabilities | 11,626 |  |  | — |
Product warranty liability | 3,206 |  |  | 3,254 |
Other | 2,235 |  |  | 2,184 |
Total other current liabilities | $ | 29,351 |  |  | $ | 17,548 |
The following table presents the changes in the Company’s warranty liability for the nine months ended June 27, 2020 and June 29, 2019:
| June 27, 2020 |  | June 29, 2019
(In thousands) |  |  |
Warranty liability, beginning of period | $ | 3,254 |  |  | $ | 2,450 |
Provision for warranties issued during the period | 9,609 |  |  | 9,474 |
Settlements of warranty claims during the period | (9,657) |  |  | (8,828) |
Warranty liability, end of period | $ | 3,206 |  |  | $ | 3,096 |

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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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