XML 45 R28.htm IDEA: XBRL DOCUMENT
v3.23.3

Balance Sheet Components (Tables) | 12 Months Ended
--- | ---
Sep. 30, 2023
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 2023, 2022 and 2021:
|  | September 30, 2023 |  |  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 2,744 |  |  | $ | 1,547 |  |  | $ | 1,307 |
Increases |  |  | 1,561 |  |  |  | 2,098 |  |  |  | 1,529 |
Write-offs |  |  | (1,594 | ) |  |  | (901 | ) |  |  | (1,289 | )
Ending balance |  | $ | 2,711 |  |  | $ | 2,744 |  |  | $ | 1,547 |
Summary of Changes In Allowance for Sales Incentives | The following table summarizes the changes in the allowance for sales incentives for fiscal 2023, 2022 and 2021:
|  | September 30, 2023 |  |  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 23,573 |  |  | $ | 19,160 |  |  | $ | 17,515 |
Charged to revenue |  |  | 139,657 |  |  |  | 51,225 |  |  |  | 95,249 |
Utilization of sales incentive allowance |  |  | (134,155 | ) |  |  | (46,812 | ) |  |  | (93,604 | )
Ending balance |  | $ | 29,075 |  |  | $ | 23,573 |  |  | $ | 19,160 |
Schedule of Inventories, Net | Inventories, net, consist of the following:
|  | September 30, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
Finished goods |  | $ | 281,571 |  |  | $ | 406,657 |
Components |  |  | 64,950 |  |  |  | 47,631 |
Inventories |  | $ | 346,521 |  |  | $ | 454,288 |
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 |  | 2-15 years
Product displays |  | 1-4 years
Property and equipment, net by country as of September 30, 2023, and October 1, 2022 were as follows:
|  | September 30, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
China |  | $ | 32,045 |  |  | $ | 40,609 |
United States |  |  | 30,430 |  |  |  | 30,870 |
Other countries |  |  | 24,600 |  |  |  | 14,689 |
Property and equipment, net |  | $ | 87,075 |  |  | $ | 86,168 |
Property and equipment, net consist of the following:
|  | September 30, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
Computer hardware and software |  | $ | 41,679 |  |  | $ | 42,000 |
Furniture and fixtures |  |  | 6,971 |  |  |  | 7,511 |
Tooling and production line test equipment |  |  | 108,693 |  |  |  | 100,337 |
Leasehold improvements |  |  | 53,648 |  |  |  | 49,656 |
Product displays |  |  | 68,771 |  |  |  | 56,885 |
Total property and equipment |  |  | 279,762 |  |  |  | 256,389 |
Accumulated depreciation and amortization |  |  | (192,687 | ) |  |  | (170,221 | )
Property and equipment, net |  | $ | 87,075 |  |  | $ | 86,168 |
Schedule of goodwill | The following table presents the changes in carrying amount of goodwill for the fiscal year ended September 30, 2023:
(In thousands) |  |  |
Balance as of October 1, 2022 |  | $ | 77,300 |
Effect of exchange rate changes on goodwill |  |  | 3,120 |
Balance as of September 30, 2023 |  | $ | 80,420 |
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:
|  | September 30, 2023 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Foreign Currency Translation |  |  | Net Carrying Value |  |  | Weighted-Average Remaining Life |
(In thousands, except weighted-average remaining life) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tradename |  | $ | 451 |  |  | $ | (113 | ) |  | $ | (12 | ) |  | $ | 326 |  |  |  | 4.50 |
Technology-based |  |  | 31,480 |  |  |  | (11,588 | ) |  |  | - |  |  |  | 19,892 |  |  |  | 4.89 |
Total finite-lived intangible assets |  |  | 31,931 |  |  |  | (11,701 | ) |  |  | (12 | ) |  |  | 20,218 |  |  |  | 4.88 |
In-process research and development and other intangible assets not subject to amortization |  |  | 71,759 |  |  |  | - |  |  |  | (1,968 | ) |  |  | 69,791 |  |  |  |
Total intangible assets |  | $ | 103,690 |  |  | $ | (11,701 | ) |  | $ | (1,980 | ) |  | $ | 90,009 |  |  |  |
The following table summarizes the estimated future amortization expense of the Company's intangible assets as September 30, 2023:
Fiscal years ending |  | Future Amortization Expense |
(In thousands) |  |  |
2024 |  | $ | 5,969 |
2025 |  |  | 3,367 |
2026 |  |  | 3,038 |
2027 |  |  | 3,022 |
2028 and thereafter |  |  | 4,822 |
Total future amortization expense |  | $ | 20,218 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following:
|  | September 30, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
Accrued inventory and supply chain costs |  | $ | 48,384 |  |  | $ | 51,011 |
Accrued advertising and marketing |  |  | 13,029 |  |  |  | 21,292 |
Accrued taxes |  |  | 11,410 |  |  |  | 7,081 |
Accrued general and administrative expenses |  |  | 9,924 |  |  |  | 21,634 |
Accrued product development |  |  | 4,298 |  |  |  | 8,168 |
Other accrued payables |  |  | 2,672 |  |  |  | 104 |
Total accrued expenses |  | $ | 89,717 |  |  | $ | 109,290 |
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 September 30, 2023, October 1, 2022, and October 2, 2021:
|  | September 30, 2023 |  |  | October 1, 2022 |  |  | October 2, 2021 |
(In thousands) |  |  |  |  |  |  |  |  |
Deferred revenue, beginning of period |  | $ | 83,470 |  |  | $ | 89,498 |  |  | $ | 62,389 |
Recognition of revenue included in beginning of period deferred revenue |  |  | (27,057 | ) |  |  | (41,438 | ) |  |  | (19,175 | )
Revenue deferred, net of revenue recognized on contracts in the respective period |  |  | 24,425 |  |  |  | 35,410 |  |  |  | 46,284 |
Deferred revenue, end of period |  | $ | 80,838 |  |  | $ | 83,470 |  |  | $ | 89,498 |
Remaining performance obligation | The Company expects the following recognition of deferred revenue as of September 30, 2023:
|  | For the fiscal years ending |  |  |  |
|  | 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 |  |  | 2028 and Beyond |  |  | Total |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue expected to be recognized |  | $ | 20,188 |  |  | $ | 17,086 |  |  | $ | 14,718 |  |  | $ | 12,088 |  |  | $ | 16,758 |  |  | $ | 80,838 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following:
|  | September 30, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
Reserve for returns |  | $ | 21,462 |  |  | $ | 18,263 |
Short-term operating lease liabilities |  |  | 1,153 |  |  |  | 10,532 |
Warranty liability |  |  | 7,466 |  |  |  | 5,771 |
Other |  |  | 4,172 |  |  |  | 5,083 |
Total other current liabilities |  | $ | 34,253 |  |  | $ | 39,649 |
Schedule of product warranty liability | The following table presents the changes in the Company’s warranty liability for the fiscal years ended September 30, 2023, and October 1, 2022:
|  | September 30, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
Warranty liability, beginning of period |  | $ | 5,771 |  |  | $ | 5,604 |
Provision for warranties issued during the period |  |  | 12,517 |  |  |  | 13,033 |
Settlements of warranty claims during the period |  |  | (10,822 | ) |  |  | (12,866 | )
Warranty liability, end of period |  | $ | 7,466 |  |  | $ | 5,771 |

X
- Definition Summary of Changes In Allowance for Sales Incentives [Table Text Block] + References No definition available. + Details
Name: | sono_SummaryofChangesInAllowanceforSalesIncentivesTableTextBlock
Namespace Prefix: | sono_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of allowance for credit loss on financing receivable. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479319/326-20-50-13 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481962/310-10-50-11B + Details
Name: | us-gaap_AllowanceForCreditLossesOnFinancingReceivablesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of receivable, contract asset, and contract liability from contract with customer. Includes, but is not limited to, change in contract asset and contract liability. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 + Details
Name: | us-gaap_ContractWithCustomerAssetAndLiabilityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of other current liabilities. + References No definition available. + Details
Name: | us-gaap_OtherCurrentLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, balances by class of assets, depreciation and depletion expense and method used, including composite depreciation, and accumulated deprecation. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -SubTopic 10 -Topic 360 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482099/360-10-50-1 + Details
Name: | us-gaap_PropertyPlantAndEquipmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of expected timing for satisfying remaining performance obligation. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(1) -SubTopic 10 -Topic 606 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 + Details
Name: | us-gaap_RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of accrued liabilities. + References No definition available. + Details
Name: | us-gaap_ScheduleOfAccruedLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 24 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482548/350-20-55-24 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-2 + Details
Name: | us-gaap_ScheduleOfGoodwillTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the carrying amount as of the balance sheet date of merchandise, goods, commodities, or supplies held for future sale or to be used in manufacturing, servicing or production process. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(6)(a)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(6)(b)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(6)(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483489/210-10-50-1 + Details
Name: | us-gaap_ScheduleOfInventoryCurrentTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the changes in the guarantor's aggregate product warranty liability, including the beginning balance of the aggregate product warranty liability, the aggregate reductions in that liability for payments made (in cash or in kind) under the warranty, the aggregate changes in the liability for accruals related to product warranties issued during the reporting period, the aggregate changes in the liability for accruals related to preexisting warranties (including adjustments related to changes in estimates), and the ending balance of the aggregate product warranty liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 460 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482425/460-10-50-8 + Details
Name: | us-gaap_ScheduleOfProductWarrantyLiabilityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amount of amortization expense expected to be recorded in succeeding fiscal years for finite-lived intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482665/350-30-50-2 + Details
Name: | us-gaap_ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration