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Balance Sheet Components
 12 Months Ended
Oct. 02, 2021
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.

Accounts Receivable Allowances

The following table summarizes changes in the allowance for credit losses for fiscal 2021, and the allowance for doubtful accounts for fiscal 2020 and 2019:
October 2,
2021		October 3,
2020		September 28,
2019
(In thousands)
Beginning balance$1,307 $1,255 $872 
Increases1,529 1,127 1,034 
Write-offs(1,289)(1,075)(651)
Ending balance$1,547 $1,307 $1,255 

The following table summarizes the changes in the allowance for sales incentives for fiscal 2021, 2020 and 2019:
October 2,
2021		October 3,
2020		September 28,
2019
(In thousands)
Beginning balance$17,515 $20,051 $11,754 
Charged to revenue95,249 108,843 87,703 
Utilization of sales incentive allowance(93,604)(111,379)(79,406)
Ending balance$19,160 $17,515 $20,051 

Inventories

Inventories, net, consist of the following:
October 2,
2021		October 3,
2020
(In thousands)
Finished goods $154,608 $172,184 
Components 30,522 8,646 
Inventories $185,130 $180,830 

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.
Property and Equipment, Net

Property and equipment, net consist of the following:
 
 October 2,
2021		October 3,
2020
 (In thousands)
Computer hardware and software$40,098 $45,798 
Furniture and fixtures7,483 8,239 
Tooling and production line test equipment76,210 67,495 
Leasehold improvements49,846 51,102 
Product displays57,863 48,925 
Total property and equipment231,500 221,559 
Accumulated depreciation and amortization(160,159)(160,775)
Property and equipment, net$71,341 $60,784 

Depreciation expense was $31.8 million, $34.9 million and $36.4 million for fiscal 2021, 2020 and 2019, respectively. During fiscal 2021, 2020 and 2019, the Company abandoned and disposed of gross fixed assets of $32.9 million, $18.5 million and $10.2 million, with accumulated depreciation of $32.2 million, $14.2 million and $9.3 million, respectively. Disposals of fixed assets were recorded in operating expenses in the consolidated statements of operations and comprehensive income (loss) and resulted in losses of $0.7 million, $4.3 million and $0.8 million for fiscal 2021, 2020 and 2019, respectively. For further detail regarding the property and equipment that was abandoned as part of the 2020 restructuring plan, refer to Note 14. Restructuring Plan.

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 2, 2021
Gross Carrying AmountAccumulated AmortizationNet Carrying ValueWeighted-Average Remaining Life
(In thousands, except weighted-average remaining life)
Technology$7,752 $(3,405)$4,347 2.67
Other39 (36)30.17
Total finite-lived intangible assets7,791 (3,441)4,350 2.67
In-process research and development and other intangible assets not subject to amortization20,100 — 20,100 
Total intangible assets$27,891 $(3,441)$24,450 
The following table summarizes the estimated future amortization expense of the Company's intangible assets as October 2, 2021:
Fiscal years endingFuture Amortization Expense
(In thousands)
2022$1,917 
20231,243 
20241,020 
2025170 
2026 and thereafter— 
Total future amortization expense$4,350 
Accrued Expenses

Accrued expenses consisted of the following:
 
 October 2,
2021		October 3,
2020
 (In thousands)
Accrued advertising and marketing$19,989 $10,609 
Accrued taxes16,941 6,252 
Accrued inventory37,117 2,843 
Accrued manufacturing, logistics and product development14,943 9,753 
Accrued general and administrative13,066 10,068 
Accrued restructuring114 1,062 
Other accrued payables5,859 4,462 
Total accrued expenses$108,029 $45,049 
 
Deferred Revenue

Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the consolidated balance sheets. For the fiscal year ended October 2, 2021, deferred revenue included revenue allocated to unspecified software upgrades and cloud-based services of $70.4 million, as well as current deferred revenue related to newly launched products sold to resellers not recognized as revenue until the date of general availability was reached.

The following table presents the changes in the Company's deferred revenue balances for the fiscal years ended October 2, 2021, October 3, 2020, and September 28, 2019:
        
October 2,
2021		October 3,
2020		September 28,
2019
(In thousands)
Deferred revenue, beginning of period$62,389 $56,449 $50,967 
Recognition of revenue included in beginning of period
   deferred revenue
(19,175)(13,052)(11,934)
Revenue deferred, net of revenue recognized on contracts
   in the respective period		46,284 18,992 17,416 
Deferred revenue, end of period$89,498 $62,389 $56,449 

The Company expects the following recognition of deferred revenue as of October 2, 2021:
        
For the fiscal years ending
20222023202420252026 and BeyondTotal
(In thousands)
Revenue expected to be recognized$35,866 $14,867 $12,805 $10,476 $15,484 $89,498 
Other Current Liabilities

Other current liabilities consist of the following:
October 2,
2021		October 3,
2020
(In thousands)
Reserve for returns$19,266 $14,195 
Short-term operating lease liabilities10,724 10,910 
Product warranty liability5,604 3,628 
Other3,950 2,417 
Total other current liabilities$39,544 $31,150 

The following table presents the changes in the Company’s warranty liability for the fiscal years ended October 2, 2021, and October 3, 2020:
October 2,
2021		October 3,
2020
(In thousands)
Warranty liability, beginning of period$3,628 $3,254 
Provision for warranties issued during the period15,304 12,711 
Settlements of warranty claims during the period(13,328)(12,337)
Warranty liability, end of period$5,604 $3,628