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v3.23.3

Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2023
Income Tax Disclosure [Abstract] |
Schedule of Income Before Provision For (Benefit From) Income Taxes | The Company’s income before provision for (benefit from) income taxes for fiscal 2023, 2022 and 2021 were as follows:
|  | September 30, 2023 |  |  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |  |  |  |
Domestic |  | $ | (9,904 | ) |  | $ | 54,609 |  |  | $ | 126,810 |
Foreign |  |  | 14,298 |  |  |  | 14,121 |  |  |  | 30,115 |
Income before provision for (benefit from) income taxes |  | $ | 4,394 |  |  | $ | 68,730 |  |  | $ | 156,925 |
Schedule of Provision For (Benefit From) Income Taxes | Components of the provision for (benefit from) income taxes consisted of the following:
|  | September 30, 2023 |  |  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 7,507 |  |  | $ | — |  |  | $ | — |
U.S. State |  |  | 4,947 |  |  |  | 483 |  |  |  | 440 |
Foreign |  |  | 2,810 |  |  |  | 3,401 |  |  |  | 6,216 |
Total current |  |  | 15,264 |  |  |  | 3,884 |  |  |  | 6,656 |
Deferred: |  |  |  |  |  |  |  |  |
U.S. Federal |  |  | — |  |  |  | (1,459 | ) |  |  | — |
U.S. State |  |  | — |  |  |  | (21 | ) |  |  | — |
Foreign |  |  | (596 | ) |  |  | (1,057 | ) |  |  | (8,326 | )
Total deferred |  |  | (596 | ) |  |  | (2,537 | ) |  |  | (8,326 | )
Provision for (benefit from) income taxes |  | $ | 14,668 |  |  | $ | 1,347 |  |  | $ | (1,670 | )
Schedule of Deferred Tax Assets and Liabilities | Components of the Company’s deferred income tax assets and liabilities are as follows:
|  | September 30, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
Deferred tax assets |  |  |  |  |  |
Research & development tax credit carryforwards |  | $ | 75,593 |  |  | $ | 92,487 |
Capitalized research & development |  |  | 63,395 |  |  |  | 9,420 |
Accrued expenses and reserves |  |  | 17,837 |  |  |  | 8,872 |
Deferred revenue |  |  | 15,855 |  |  |  | 14,170 |
Operating lease liability |  |  | 13,097 |  |  |  | 7,717 |
Stock-based compensation |  |  | 7,727 |  |  |  | 9,261 |
Foreign net operating loss carryforwards |  |  | 7,606 |  |  |  | 7,702 |
Other capitalized costs |  |  | 5,364 |  |  |  | 3,799 |
Depreciation |  |  | 2,700 |  |  |  | 2,239 |
U.S. net operating loss carryforwards |  |  | 1,852 |  |  |  | 26,363 |
Other |  |  | 494 |  |  |  | 182 |
Total deferred tax assets |  |  | 211,520 |  |  |  | 182,212 |
Valuation allowance |  |  | (185,840 | ) |  |  | (162,267 | )
Deferred tax assets, net of valuation allowance |  |  | 25,680 |  |  |  | 19,945 |
Deferred tax liabilities |  |  |  |  |  |
Intangibles |  |  | (22,475 | ) |  |  | (22,125 | )
Right-of-use asset |  |  | (11,392 | ) |  |  | (5,940 | )
Other |  |  | — |  |  |  | (14 | )
Total deferred tax liabilities |  |  | (33,867 | ) |  |  | (28,079 | )
Net deferred tax assets (liabilities) |  | $ | (8,187 | ) |  | $ | (8,134 | )
Reported as |  |  |  |  |  |
Deferred tax assets |  | $ | 1,659 |  |  | $ | 1,508 |
Deferred tax liabilities |  |  | (9,846 | ) |  |  | (9,642 | )
Net deferred tax assets (liabilities) |  | $ | (8,187 | ) |  | $ | (8,134 | )
Summary of Changes in Valuation Allowance | The following table summarizes changes in the valuation allowance for fiscal 2023, 2022 and 2021:
|  | September 30, 2023 |  |  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 162,267 |  |  | $ | 155,978 |  |  | $ | 113,939 |
Increase during the period |  |  | 23,628 |  |  |  | 13,841 |  |  |  | 49,791 |
Decrease during the period |  |  | (55 | ) |  |  | (7,552 | ) |  |  | (7,752 | )
Ending balance |  | $ | 185,840 |  |  | $ | 162,267 |  |  | $ | 155,978 |
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:
|  | September 30, 2023 |  |  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |  |  |  |
U.S. federal income taxes at statutory rate |  | $ | 923 |  |  | $ | 14,433 |  |  | $ | 32,954 |
U.S. state and local income taxes, net of federal benefit and state credits |  |  | (841 | ) |  |  | (2,594 | ) |  |  | (9,473 | )
Foreign income tax rate differential |  |  | 734 |  |  |  | 970 |  |  |  | 1,430 |
Stock-based compensation |  |  | 104 |  |  |  | (15,532 | ) |  |  | (47,496 | )
Federal research and development tax credits |  |  | (7,591 | ) |  |  | (8,983 | ) |  |  | (21,535 | )
Unrecognized federal tax benefits |  |  | 184 |  |  |  | (2,482 | ) |  |  | 4,041 |
Change in tax rate |  |  | — |  |  |  | 5,013 |  |  |  | (2,681 | )
Global intangible low taxed income, net of foreign tax credits |  |  | 1,234 |  |  |  | 290 |  |  |  | — |
Foreign -derived intangible income (FDII) deduction |  |  | (6,863 | ) |  |  | — |  |  |  | — |
Subpart F income |  |  | 1,374 |  |  |  | — |  |  |  | — |
162(m) executive compensation limitation |  |  | 2,513 |  |  |  | 2,574 |  |  |  | — |
Other |  |  | (695 | ) |  |  | 1,079 |  |  |  | (565 | )
Change in valuation allowance |  |  | 23,592 |  |  |  | 6,579 |  |  |  | 41,655 |
Provision for income taxes |  | $ | 14,668 |  |  | $ | 1,347 |  |  | $ | (1,670 | )
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:
|  | September 30, 2023 |  |  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 17,021 |  |  | $ | 21,252 |  |  | $ | 14,721 |
Decrease - tax positions in prior periods |  |  | (566 | ) |  |  | (6,039 | ) |  |  | (4 | )
Increase - tax positions in current periods |  |  | 1,164 |  |  |  | 1,808 |  |  |  | 6,535 |
Ending balance |  | $ | 17,619 |  |  | $ | 17,021 |  |  | $ | 21,252 |

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