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v3.22.2.2

Balance Sheet Components (Tables) | 12 Months Ended
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Oct. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Summary of Changes in Allowance for Credit Losses | The following table summarizes changes in the allowance for credit losses for fiscal 2022 and 2021, and the allowance for doubtful accounts for fiscal 2020:
|  | October 1, 2022 |  |  | October 2, 2021 |  |  | October 3, 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 1,547 |  |  | $ | 1,307 |  |  | $ | 1,255 |
Increases |  |  | 2,098 |  |  |  | 1,529 |  |  |  | 1,127 |
Write-offs |  |  | (901 | ) |  |  | (1,289 | ) |  |  | (1,075 | )
Ending balance |  | $ | 2,744 |  |  | $ | 1,547 |  |  | $ | 1,307 |
Summary of Changes In Allowance for Sales Incentives | The following table summarizes the changes in the allowance for sales incentives for fiscal 2022, 2021 and 2020:
|  | October 1, 2022 |  |  | October 2, 2021 |  |  | October 3, 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 19,160 |  |  | $ | 17,515 |  |  | $ | 20,051 |
Charged to revenue |  |  | 51,225 |  |  |  | 95,249 |  |  |  | 108,843 |
Utilization of sales incentive allowance |  |  | (46,812 | ) |  |  | (93,604 | ) |  |  | (111,379 | )
Ending balance |  | $ | 23,573 |  |  | $ | 19,160 |  |  | $ | 17,515 |
Schedule of Inventories, Net | Inventories, net, consist of the following:
|  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |
Finished goods |  | $ | 406,657 |  |  | $ | 154,608 |
Components |  |  | 47,631 |  |  |  | 30,522 |
Inventories |  | $ | 454,288 |  |  | $ | 185,130 |
Schedule of Property and Equipment | Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:
Computer hardware and software |  | 1-5 years
Furniture and fixtures |  | 2-5 years
Tooling and production line test equipment |  | 2-4 years
Leasehold improvements |  | 1-15 years
Product displays |  | 1-3 years
Property and equipment, net by country as of October 1, 2022, and October 2, 2021 were as follows:
|  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |
China |  | $ | 40,609 |  |  | $ | 23,460 |
United States |  |  | 30,870 |  |  |  | 40,669 |
Other countries |  |  | 14,689 |  |  |  | 7,212 |
Property and equipment, net |  | $ | 86,168 |  |  | $ | 71,341 |
Property and equipment, net consist of the following:
|  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |
Computer hardware and software |  | $ | 42,000 |  |  | $ | 40,098 |
Furniture and fixtures |  |  | 7,511 |  |  |  | 7,483 |
Tooling and production line test equipment |  |  | 100,337 |  |  |  | 76,210 |
Leasehold improvements |  |  | 49,656 |  |  |  | 49,846 |
Product displays |  |  | 56,885 |  |  |  | 57,863 |
Total property and equipment |  |  | 256,389 |  |  |  | 231,500 |
Accumulated depreciation and amortization |  |  | (170,221 | ) |  |  | (160,159 | )
Property and equipment, net |  | $ | 86,168 |  |  | $ | 71,341 |
Schedule of goodwill | The following table presents the changes in carrying amount of goodwill for the fiscal year ended October 1, 2022:
(In thousands) |  |  |
Balance as of October 2, 2021 |  | $ | 15,545 |
Goodwill acquired |  |  | 66,078 |
Effect of exchange rate changes on goodwill |  |  | (4,323 | )
Balance as of October 1, 2022 |  | $ | 77,300 |
Schedule of finite-lived intangible assets, future amortization expense | 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 1, 2022 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Impact of FX |  |  | Net Carrying Value |  |  | Weighted-Average Remaining Life |
(In thousands, except weighted-average remaining life) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tradename |  | $ | 451 |  |  | $ | (23 | ) |  | $ | (44 | ) |  | $ | 384 |  |  |  | 5.50 |
Technology-based |  |  | 34,032 |  |  |  | (8,032 | ) |  |  | 0 |  |  |  | 26,000 |  |  |  | 5.50 |
Total finite-lived intangible assets |  |  | 34,483 |  |  |  | (8,055 | ) |  |  | (44 | ) |  |  | 26,384 |  |  |  | 5.50 |
In-process research and development and other intangible assets not subject to amortization |  |  | 71,759 |  |  |  | 0 |  |  |  | (7,079 | ) |  |  | 64,680 |  |  |  |
Total intangible assets |  | $ | 106,242 |  |  | $ | (8,055 | ) |  | $ | (7,123 | ) |  | $ | 91,064 |  |  |  |
The following table summarizes the estimated future amortization expense of the Company's intangible assets as October 1, 2022:
Fiscal years ending |  | Future Amortization Expense |
(In thousands) |  |  |
2023 |  | $ | 6,176 |
2024 |  |  | 5,963 |
2025 |  |  | 3,363 |
2026 |  |  | 3,033 |
2027 and thereafter |  |  | 7,849 |
Total future amortization expense |  | $ | 26,384 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following:
|  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |
Accrued advertising and marketing |  | $ | 21,292 |  |  | $ | 19,989 |
Accrued taxes |  |  | 7,081 |  |  |  | 16,941 |
Accrued inventory and supply chain costs |  |  | 51,011 |  |  |  | 48,672 |
Accrued product development |  |  | 8,168 |  |  |  | 7,101 |
Accrued general and administrative expenses |  |  | 21,634 |  |  |  | 14,243 |
Other accrued payables |  |  | 104 |  |  |  | 1,083 |
Total accrued expenses |  | $ | 109,290 |  |  | $ | 108,029 |
Changes in deferred balances and expected revenue recognition | The following table presents the changes in the Company's deferred revenue balances for the fiscal years ended October 1, 2022, October 2, 2021, and October 3, 2020:
|  | October 1, 2022 |  |  | October 2, 2021 |  |  | October 3, 2020 |
(In thousands) |  |  |  |  |  |  |  |  |
Deferred revenue, beginning of period |  | $ | 89,498 |  |  | $ | 62,389 |  |  | $ | 56,449 |
Recognition of revenue included in beginning of period deferred revenue |  |  | (41,438 | ) |  |  | (19,175 | ) |  |  | (13,052 | )
Revenue deferred, net of revenue recognized on contracts in the respective period |  |  | 35,410 |  |  |  | 46,284 |  |  |  | 18,992 |
Deferred revenue, end of period |  | $ | 83,470 |  |  | $ | 89,498 |  |  | $ | 62,389 |
Remaining performance obligation | The Company expects the following recognition of deferred revenue as of October 1, 2022:
|  | For the fiscal years ending |  |  |  |
|  | 2023 |  |  | 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 and Beyond |  |  | Total |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue expected to be recognized |  | $ | 27,318 |  |  | $ | 15,587 |  |  | $ | 13,330 |  |  | $ | 11,029 |  |  | $ | 16,206 |  |  | $ | 83,470 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following:
|  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |
Reserve for returns |  | $ | 18,263 |  |  | $ | 19,266 |
Short-term operating lease liabilities |  |  | 10,532 |  |  |  | 10,724 |
Warranty liability |  |  | 5,771 |  |  |  | 5,604 |
Other |  |  | 5,083 |  |  |  | 3,950 |
Total other current liabilities |  | $ | 39,649 |  |  | $ | 39,544 |
Schedule of product warranty liability | The following table presents the changes in the Company’s warranty liability for the fiscal years ended October 1, 2022, and October 2, 2021:
|  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |
Warranty liability, beginning of period |  | $ | 5,604 |  |  | $ | 3,628 |
Provision for warranties issued during the period |  |  | 13,033 |  |  |  | 15,304 |
Settlements of warranty claims during the period |  |  | (12,866 | ) |  |  | (13,328 | )
Warranty liability, end of period |  | $ | 5,771 |  |  | $ | 5,604 |

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