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Income Taxes (Tables) | 12 Months Ended
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Oct. 01, 2022
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 2022, 2021 and 2020 were as follows:
|  | October 1, 2022 |  |  | October 2, 2021 |  |  | October 3, 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Domestic |  | $ | 54,609 |  |  | $ | 126,810 |  |  | $ | (15,194 | )
Foreign |  |  | 14,121 |  |  |  | 30,115 |  |  |  | (4,889 | )
Income (loss) before provision for (benefit from) income taxes |  | $ | 68,730 |  |  | $ | 156,925 |  |  | $ | (20,083 | )
Schedule of Provision For (Benefit From) Income Taxes | Components of the provision for (benefit from) income taxes consisted of the following:
|  | October 1, 2022 |  |  | October 2, 2021 |  |  | October 3, 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | — |  |  | $ | — |  |  | $ | (1,388 | )
U.S. State |  |  | 483 |  |  |  | 440 |  |  |  | 724 |
Foreign |  |  | 3,401 |  |  |  | 6,216 |  |  |  | 1,220 |
Total current |  |  | 3,884 |  |  |  | 6,656 |  |  |  | 556 |
Deferred: |  |  |  |  |  |  |  |  |
U.S. Federal |  |  | (1,459 | ) |  |  | — |  |  |  | — |
U.S. State |  |  | (21 | ) |  |  | — |  |  |  | — |
Foreign |  |  | (1,057 | ) |  |  | (8,326 | ) |  |  | (524 | )
Total deferred |  |  | (2,537 | ) |  |  | (8,326 | ) |  |  | (524 | )
Provision for (benefit from) income taxes |  | $ | 1,347 |  |  | $ | (1,670 | ) |  | $ | 32 |
Schedule of Deferred Tax Assets and Liabilities | Components of the Company’s deferred income tax assets and liabilities are as follows:
|  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |
Deferred tax assets |  |  |  |  |  |
Accrued expenses and reserves |  | $ | 8,872 |  |  | $ | 18,601 |
Deferred revenue |  |  | 14,170 |  |  |  | 13,915 |
U.S. net operating loss carryforwards |  |  | 26,363 |  |  |  | 25,284 |
Foreign net operating loss carryforwards |  |  | 7,702 |  |  |  | 13,240 |
Research & development tax credit carryforwards |  |  | 92,487 |  |  |  | 77,607 |
Stock-based compensation |  |  | 9,261 |  |  |  | 9,082 |
Operating lease liability |  |  | 7,717 |  |  |  | 9,908 |
Capitalized research & development |  |  | 9,420 |  |  |  | 3,409 |
Other capitalized costs |  |  | 3,799 |  |  |  | 4,622 |
Depreciation |  |  | 2,239 |  |  |  | 1,843 |
Other |  |  | 182 |  |  |  | 428 |
Total deferred tax assets |  |  | 182,212 |  |  |  | 177,939 |
Valuation allowance |  |  | (162,267 | ) |  |  | (155,978 | )
Deferred tax assets, net of valuation allowance |  |  | 19,945 |  |  |  | 21,961 |
Deferred tax liabilities |  |  |  |  |  |
Tax accounting method change |  |  | — |  |  |  | (962 | )
Right-of-use asset |  |  | (5,940 | ) |  |  | (7,388 | )
Intangibles |  |  | (22,125 | ) |  |  | (5,833 | )
Other |  |  | (14 | ) |  |  | (144 | )
Total deferred tax liabilities |  |  | (28,079 | ) |  |  | (14,327 | )
Net deferred tax assets (liabilities) |  | $ | (8,134 | ) |  | $ | 7,634 |
Reported as |  |  |  |  |  |
Deferred tax assets |  | $ | 1,508 |  |  | $ | 10,028 |
Deferred tax liabilities |  |  | (9,642 | ) |  |  | (2,394 | )
Net deferred tax assets (liabilities) |  | $ | (8,134 | ) |  | $ | 7,634 |
Summary of Changes in Valuation Allowance | The following table summarizes changes in the valuation allowance for fiscal 2022, 2021 and 2020:
|  | October 1, 2022 |  |  | October 2, 2021 |  |  | October 3, 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 155,978 |  |  | $ | 113,939 |  |  | $ | 95,088 |
Increase during the period |  |  | 13,841 |  |  |  | 49,791 |  |  |  | 18,851 |
Decrease during the period |  |  | (7,552 | ) |  |  | (7,752 | ) |  |  | — |
Ending balance |  | $ | 162,267 |  |  | $ | 155,978 |  |  | $ | 113,939 |
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 1, 2022 |  |  | October 2, 2021 |  |  | October 3, 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
U.S. federal income taxes at statutory rate |  | $ | 14,433 |  |  | $ | 32,954 |  |  | $ | (4,217 | )
U.S. state and local income taxes, net of federal benefit and state credits |  |  | (2,594 | ) |  |  | (9,473 | ) |  |  | (2,798 | )
Foreign income tax rate differential |  |  | 970 |  |  |  | 1,430 |  |  |  | (75 | )
Stock-based compensation |  |  | (15,532 | ) |  |  | (47,496 | ) |  |  | 869 |
Federal research and development tax credits |  |  | (8,983 | ) |  |  | (21,535 | ) |  |  | (8,012 | )
Unrecognized federal tax benefits |  |  | (2,482 | ) |  |  | 4,041 |  |  |  | 815 |
Change in tax rate |  |  | 5,013 |  |  |  | (2,681 | ) |  |  | — |
Global intangible low taxed income, net of foreign tax credits |  |  | 290 |  |  |  | — |  |  |  | — |
162(m) executive compensation limitation |  |  | 2,574 |  |  |  | — |  |  |  | — |
Base erosion and anti-abuse tax |  |  | — |  |  |  | — |  |  |  | (781 | )
Other |  |  | 1,079 |  |  |  | (565 | ) |  |  | 598 |
Change in valuation allowance |  |  | 6,579 |  |  |  | 41,655 |  |  |  | 13,633 |
Provision for income taxes |  | $ | 1,347 |  |  | $ | (1,670 | ) |  | $ | 32 |
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 1, 2022 |  |  | October 2, 2021 |  |  | October 3, 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 21,252 |  |  | $ | 14,721 |  |  | $ | 12,527 |
Decrease - tax positions in prior periods |  |  | (6,039 | ) |  |  | (4 | ) |  |  | (768 | )
Increase - tax positions in current periods |  |  | 1,808 |  |  |  | 6,535 |  |  |  | 2,962 |
Ending balance |  | $ | 17,021 |  |  | $ | 21,252 |  |  | $ | 14,721 |

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