XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

Balance Sheet Components | 6 Months Ended
--- | ---
Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance Sheet Components | 5. Balance Sheet Components Accounts receivable, net of allowances Accounts receivable, net of allowances, consist of the following:
|  | April 1, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
Accounts receivable |  | $ | 112,019 |  |  | $ | 127,523 |
Allowance for credit losses |  |  | (3,171 | ) |  |  | (2,744 | )
Allowance for sales incentives |  |  | (24,645 | ) |  |  | (23,573 | )
Accounts receivable, net of allowances |  | $ | 84,203 |  |  | $ | 101,206 |
Inventories Inventories, net, consist of the following:
|  | April 1, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
Finished goods |  | $ | 274,459 |  |  | $ | 406,657 |
Component parts |  |  | 51,830 |  |  |  | 47,631 |
Inventories |  | $ | 326,289 |  |  | $ | 454,288 |
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. As of April 1, 2023, and October 1, 2022, inventory write-downs were $19.3 million and $8.8 million, respectively. Goodwill The following table presents the changes in carrying amount of goodwill during the six months ended April 1, 2023:
(In thousands) |  |  |
Balance as of October 1, 2022 |  | $ | 77,300 |
Effect of exchange rate changes on goodwill |  |  | 4,201 |
Balance as of April 1, 2023 |  | $ | 81,501 |
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:
|  | April 1, 2023 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Impact of FX |  |  | Net Carrying Value |  |  | Weighted-Average Remaining Life |
(In thousands, except weighted-average remaining life) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade name |  | $ | 451 |  |  | $ | (71 | ) |  | $ | (1 | ) |  | $ | 379 |  |  |  | 5.00 |
Technology-based |  |  | 31,480 |  |  |  | (8,640 | ) |  |  | — |  |  |  | 22,840 |  |  |  | 5.19 |
Total finite-lived intangible assets |  |  | 31,931 |  |  |  | (8,711 | ) |  |  | (1 | ) |  |  | 23,219 |  |  |  | 5.19 |
In-process research and development not subject to amortization |  |  | 71,759 |  |  |  | — |  |  |  | (205 | ) |  |  | 71,554 |  |  |  |
Total intangible assets |  | $ | 103,690 |  |  | $ | (8,711 | ) |  | $ | (206 | ) |  | $ | 94,773 |  |  |  |
The following table summarizes the estimated future amortization expense of the Company's intangible assets as of April 1, 2023:
Fiscal years ending |  | Future Amortization Expense |
(In thousands) |  |  |
Remainder of fiscal 2023 |  | $ | 2,986 |
2024 |  |  | 5,971 |
2025 |  |  | 3,371 |
2026 |  |  | 3,041 |
2027 |  |  | 3,026 |
2028 and there after |  |  | 4,824 |
Total future amortization expense |  | $ | 23,219 |
Cloud Computing Arrangements The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. Implementation costs incurred during the application development stage are capitalized until the software is ready for its intended use. The costs are then amortized on a straight-line basis over the term of the associated hosting arrangement and are recognized as an operating expense within the condensed consolidated statements of operations and comprehensive income (loss). Beginning in fiscal 2020, and continuing through April 2022, the Company conducted activities to replace its legacy enterprise resource management system in order to accommodate the Company's expanding operations. In May 2022, the Company went live with its implementation of a new enterprise resource planning ("ERP") system. Capitalized costs, net of accumulated amortization, were $19.8 million and $21.7 million as of April 1, 2023, and October 1, 2022, respectively, and are reported as a component of other noncurrent assets on the Company's condensed consolidated balance sheets. Amortization expenses for implementation costs for cloud-based computing arrangements for three and six months ended April 1, 2023 were $1.0 million and $1.9 million, respectively. Accumulated amortization was $4.4 million and $2.5 million as of April 1, 2023, and October 1, 2022, respectively. Accrued expenses Accrued expenses consisted of the following:
|  | April 1, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
Accrued inventory and supply chain costs |  | $ | 40,213 |  |  | $ | 51,011 |
Accrued general and administrative expenses |  |  | 14,811 |  |  |  | 21,634 |
Accrued advertising and marketing |  |  | 10,982 |  |  |  | 21,292 |
Accrued taxes |  |  | 5,076 |  |  |  | 7,081 |
Accrued product development |  |  | 3,313 |  |  |  | 8,168 |
Other accrued payables |  |  | 1,992 |  |  |  | 104 |
Total accrued expenses |  | $ | 76,387 |  |  | $ | 109,290 |
Deferred revenue Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue primarily relates to revenue allocated to unspecified software upgrades and cloud-based services. Recognition of revenue as of April 1, 2023, includes $9.2 million of deferred revenue from the fourth quarter of fiscal 2022, related to newly launched products sold to resellers not recognized as revenue until the date of general availability was reached, which was the first quarter of fiscal 2023. Recognition of revenue as of April 2, 2022, includes $18.8 million of deferred revenue from the fourth quarter of fiscal 2021, related to newly launched products sold to resellers not recognized as revenue until the date of general availability was reached, which was the first quarter of fiscal 2022. The following table presents the changes in the Company’s deferred revenue for the six months ended April 1, 2023, and April 2, 2022:
|  | April 1, 2023 |  |  | April 2, 2022 |
(In thousands) |  |  |  |  |  |
Deferred revenue, beginning of period |  | $ | 83,470 |  |  | $ | 89,498 |
Recognition of revenue included in beginning of period deferred revenue |  |  | (16,186 | ) |  |  | (28,927 | )
Revenue deferred, net of revenue recognized on contracts in the respective period |  |  | 14,443 |  |  |  | 16,063 |
Deferred revenue, end of period |  | $ | 81,727 |  |  | $ | 76,634 |
The Company expects the following recognition of deferred revenue as of April 1, 2023:
|  | For the fiscal years ending |  |  |  |
|  | 2023 |  |  | 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 and Beyond |  |  | Total |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred revenue expected to be recognized |  | $ | 10,391 |  |  | $ | 18,190 |  |  | $ | 15,892 |  |  | $ | 13,497 |  |  | $ | 23,757 |  |  | $ | 81,727 |
Other current liabilities Other current liabilities consist of the following:
|  | April 1, 2023 |  |  | October 1, 2022 |
(In thousands) |  |  |  |  |  |
Reserve for returns |  | $ | 15,674 |  |  | $ | 18,263 |
Short-term operating lease liabilities |  |  | 10,949 |  |  |  | 10,532 |
Warranty liability |  |  | 8,993 |  |  |  | 5,771 |
Other |  |  | 6,250 |  |  |  | 5,083 |
Total other current liabilities |  | $ | 41,866 |  |  | $ | 39,649 |
The following table presents the changes in the Company’s warranty liability for the six months ended April 1, 2023, and April 2, 2022:
|  | April 1, 2023 |  |  | April 2, 2022 |
(In thousands) |  |  |  |  |  |
Warranty liability, beginning of period |  | $ | 5,771 |  |  | $ | 5,604 |
Provision for warranties issued during the period |  |  | 7,892 |  |  |  | 7,082 |
Settlements of warranty claims during the period |  |  | (4,670 | ) |  |  | (3,930 | )
Warranty liability, end of period |  | $ | 8,993 |  |  | $ | 8,756 |

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 The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI https://asc.fasb.org/topic&trid=2122208 + Details
Name: | us-gaap_SupplementalBalanceSheetDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration