XML 43 R30.htm IDEA: XBRL DOCUMENT
v3.21.2

Income Taxes (Tables) | 12 Months Ended
--- | ---
Oct. 02, 2021
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) Before Provision For (Benefit From) Income Taxes | The Company’s income (loss) before provision for (benefit from) income taxes for fiscal 2021, 2020 and 2019 were as follows:
| October 2, 2021 |  | October 3, 2020 |  | September 28, 2019
(In thousands)
Domestic | $ | 126,810 |  |  | $ | (15,194) |  |  | $ | (858) |
Foreign | 30,115 |  |  | (4,889) |  |  | (218) |
Income (loss) before provision for (benefit from) income taxes | $ | 156,925 |  |  | $ | (20,083) |  |  | $ | (1,076) |
Schedule of Provision For (Benefit From) Income Taxes | Components of the provision for (benefit from) income taxes consisted of the following:
| October 2, 2021 |  | October 3, 2020 |  | September 28, 2019
(In thousands)
Current: |  |  |  |  |
U.S. Federal | $ | — |  |  | $ | (1,388) |  |  | $ | 1,366 |
U.S. State | 440 |  |  | 724 |  |  | 1,132 |
Foreign | 6,216 |  |  | 1,220 |  |  | 1,463 |
Total current | 6,656 |  |  | 556 |  |  | 3,961 |
Deferred: |  |  |  |  |
U.S. Federal | — |  |  | — |  |  | — |
U.S. State | — |  |  | — |  |  | — |
Foreign | (8,326) |  |  | (524) |  |  | (271) |
Total deferred | (8,326) |  |  | (524) |  |  | (271) |
Provision for (benefit from) income taxes | $ | (1,670) |  |  | $ | 32 |  |  | $ | 3,690 |
Schedule of Deferred Tax Assets and Liabilities | Components of the Company’s deferred income tax assets and liabilities are as follows:
| October 2, 2021 |  | October 3, 2020
(In thousands)
Deferred tax assets |  |  |
Accrued expenses and reserves | $ | 18,601 |  |  | $ | 12,014 |
Deferred revenue | 13,915 |  |  | 11,831 |
U.S. net operating loss carryforwards | 25,284 |  |  | 8,242 |
Foreign net operating loss carryforwards | 13,240 |  |  | 12,183 |
Research & development tax credit carryforwards | 77,607 |  |  | 53,543 |
Stock-based compensation | 9,082 |  |  | 11,018 |
Operating lease liability | 9,908 |  |  | 14,377 |
U.S. amortization | 8,031 |  |  | 7,648 |
Depreciation | 1,875 |  |  | 1,101 |
Other | 428 |  |  | 603 |
Total deferred tax assets | 177,971 |  |  | 132,560 |
Valuation allowance | (155,978) |  |  | (113,939) |
Deferred tax assets, net of valuation allowance | 21,993 |  |  | 18,621 |
Deferred tax liabilities |  |  |
Tax accounting method change | (962) |  |  | (2,946) |
Right-of-use asset | (7,388) |  |  | (9,914) |
Foreign amortization | (5,833) |  |  | (6,093) |
Depreciation | (32) |  |  | (187) |
Other | (144) |  |  | (115) |
Total deferred tax liabilities | (14,359) |  |  | (19,255) |
Net deferred tax assets (liabilities) | $ | 7,634 |  |  | $ | (634) |
Reported as |  |  |
Deferred tax assets | $ | 10,028 |  |  | $ | 1,800 |
Deferred tax liabilities | (2,394) |  |  | (2,434) |
Net deferred tax assets (liabilities) | $ | 7,634 |  |  | $ | (634) |
Summary of Changes in Valuation Allowance | The following table summarizes changes in the valuation allowance for fiscal 2021, 2020 and 2019:
| October 2, 2021 |  | October 3, 2020 |  | September 28, 2019
(In thousands) |  |  |  |  |
Beginning balance | $ | 113,939 |  |  | $ | 95,088 |  |  | $ | 72,380 |
Increase during the period | 49,791 |  |  | 18,851 |  |  | 22,708 |
Decrease during the period | (7,752) |  |  | — |  |  | — |
Ending balance | $ | 155,978 |  |  | $ | 113,939 |  |  | $ | 95,088 |
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:
| October 2, 2021 |  | October 3, 2020 |  | September 28, 2019
(In thousands) |  |  |  |  |
U.S. federal income taxes at statutory rate | $ | 32,954 |  |  | $ | (4,217) |  |  | $ | (226) |
U.S. state and local income taxes, net of federal benefit and state credits | (9,473) |  |  | (2,798) |  |  | (9,315) |
Foreign income tax rate differential | 1,430 |  |  | (75) |  |  | 129 |
Stock-based compensation | (47,496) |  |  | 869 |  |  | (2,399) |
Federal research and development tax credits | (21,535) |  |  | (8,012) |  |  | (8,418) |
Unrecognized federal tax benefits | 4,041 |  |  | 815 |  |  | (2,806) |
Change in tax rate | (2,681) |  |  | — |  |  | 1,161 |
Global intangible low taxed income, net of foreign tax credits | — |  |  | — |  |  | 239 |
Base erosion and anti-abuse tax | — |  |  | (781) |  |  | 781 |
Other | (565) |  |  | 598 |  |  | 822 |
Change in valuation allowance | 41,655 |  |  | 13,633 |  |  | 23,722 |
Provision for income taxes | $ | (1,670) |  |  | $ | 32 |  |  | $ | 3,690 |
Schedule of Changes in Unrecognized Tax Benefits | Change in gross unrecognized tax benefits, excluding interest and penalties, as a result of uncertain tax positions are as follows:
| October 2, 2021 |  | October 3, 2020 |  | September 28, 2019
(In thousands) |  |
Beginning balance | $ | 14,721 |  |  | $ | 12,527 |  |  | $ | 17,794 |
Decrease - tax positions in prior periods | (4) |  |  | (768) |  |  | (8,226) |
Increase - tax positions in current periods | 6,535 |  |  | 2,962 |  |  | 2,959 |
Ending balance | $ | 21,252 |  |  | $ | 14,721 |  |  | $ | 12,527 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=124434304&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration