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Income Taxes (Tables) | 12 Months Ended
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Sep. 28, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income Before Provision For (Benefit From) Income Taxes | The Company’s income (loss) before provision for income taxes for fiscal 2024, 2023 and 2022 were as follows:
| September 28, 2024 |  | September 30, 2023 |  | October 1, 2022
(In thousands) |  |  |  |  |
Domestic | $ | (56,661) |  |  | $ | (9,904) |  |  | $ | 54,609 |
Foreign | 29,510 |  |  | 14,298 |  |  | 14,121 |
Income (loss) before provision for income taxes | $ | (27,151) |  |  | $ | 4,394 |  |  | $ | 68,730 |
Schedule of Provision For (Benefit From) Income Taxes | Components of the provision for income taxes consisted of the following:
| September 28, 2024 |  | September 30, 2023 |  | October 1, 2022
(In thousands) |  |  |  |  |
Current: |  |  |  |  |
U.S. Federal | $ | 8,094 |  |  | $ | 7,507 |  |  | $ | — |
U.S. State | 4,023 |  |  | 4,947 |  |  | 483 |
Foreign | 17,798 |  |  | 2,810 |  |  | 3,401 |
Total current | 29,915 |  |  | 15,264 |  |  | 3,884 |
Deferred: |  |  |  |  |
U.S. Federal | — |  |  | — |  |  | (1,459) |
U.S. State | — |  |  | — |  |  | (21) |
Foreign | (18,920) |  |  | (596) |  |  | (1,057) |
Total deferred | (18,920) |  |  | (596) |  |  | (2,537) |
Provision for income taxes | $ | 10,995 |  |  | $ | 14,668 |  |  | $ | 1,347 |
Schedule of Deferred Tax Assets and Liabilities | Components of the Company’s deferred income tax assets and liabilities are as follows:
| September 28, 2024 |  | September 30, 2023
(In thousands) |  |  |
Deferred tax assets |  |  |
Capitalized research & development | $ | 107,474 |  |  | $ | 63,395 |
Research & development tax credit carryforwards | 58,156 |  |  | 75,593 |
Accrued expenses and reserves | 17,070 |  |  | 17,837 |
Deferred revenue | 15,374 |  |  | 15,855 |
Operating lease liability | 14,259 |  |  | 13,097 |
Other capitalized costs | 12,030 |  |  | 5,364 |
Stock-based compensation | 8,195 |  |  | 7,727 |
Foreign net operating loss carryforwards | 5,783 |  |  | 7,606 |
Depreciation | 2,991 |  |  | 2,700 |
U.S. net operating loss carryforwards | 2,296 |  |  | 1,852 |
Other | 592 |  |  | 494 |
Total deferred tax assets | 244,220 |  |  | 211,520 |
Valuation allowance | (216,365) |  |  | (185,840) |
Deferred tax assets, net of valuation allowance | 27,855 |  |  | 25,680 |
Deferred tax liabilities |  |  |
Right-of-use asset | (10,955) |  |  | (11,392) |
Intangibles | (3,392) |  |  | (22,475) |
Capitalized inventory | (3,254) |  |  | — |
Total deferred tax liabilities | (17,601) |  |  | (33,867) |
Net deferred tax assets (liabilities) | $ | 10,254 |  |  | $ | (8,187) |
Reported as |  |  |
Deferred tax assets | $ | 10,314 |  |  | $ | 1,659 |
Deferred tax liabilities | (60) |  |  | (9,846) |
Net deferred tax assets (liabilities) | $ | 10,254 |  |  | $ | (8,187) |
Summary of Changes in Valuation Allowance | The following table summarizes changes in the valuation allowance for fiscal 2024, 2023 and 2022:
| September 28, 2024 |  | September 30, 2023 |  | October 1, 2022
(In thousands) |  |  |  |  |
Beginning balance | $ | 185,840 |  |  | $ | 162,267 |  |  | $ | 155,978 |
Increase during the period | 32,573 |  |  | 23,628 |  |  | 13,841 |
Decrease during the period | (2,048) |  |  | (55) |  |  | (7,552) |
Ending balance | $ | 216,365 |  |  | $ | 185,840 |  |  | $ | 162,267 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of U.S. statutory federal income taxes to the Company’s provision for income taxes is as follows:
| September 28, 2024 |  | September 30, 2023 |  | October 1, 2022
(In thousands) |  |  |  |  |
U.S. federal income taxes at statutory rate | $ | (5,702) |  |  | $ | 923 |  |  | $ | 14,433 |
U.S. state and local income taxes, net of federal benefit and state credits | (2,496) |  |  | (841) |  |  | (2,594) |
Foreign income tax rate differential | 1,544 |  |  | 734 |  |  | 970 |
Stock-based compensation | 2,726 |  |  | 104 |  |  | (15,532) |
Federal research and development tax credits | (8,240) |  |  | (7,591) |  |  | (8,983) |
Unrecognized federal tax benefits | 1,082 |  |  | 184 |  |  | (2,482) |
Change in tax rate | (188) |  |  | — |  |  | 5,013 |
Global intangible low taxed income, net of foreign tax credits | 944 |  |  | 1,234 |  |  | 290 |
Foreign -derived intangible income (FDII) deduction | (1,519) |  |  | (6,863) |  |  | — |
Subpart F income | 733 |  |  | 1,374 |  |  | — |
162(m) executive compensation limitation | 1,496 |  |  | 2,513 |  |  | 2,574 |
Deferred adjustments | 504 |  |  | — |  |  | — |
Intercompany IP sale | (10,412) |  |  | — |  |  | — |
Other | (121) |  |  | (695) |  |  | 1,079 |
Change in valuation allowance | 30,644 |  |  | 23,592 |  |  | 6,579 |
Provision for income taxes | $ | 10,995 |  |  | $ | 14,668 |  |  | $ | 1,347 |
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 28, 2024 |  | September 30, 2023 |  | October 1, 2022
(In thousands) |  |  |  |  |
Beginning balance | $ | 17,619 |  |  | $ | 17,021 |  |  | $ | 21,252 |
Increase (decrease) - tax positions in prior periods | 147 |  |  | (566) |  |  | (6,039) |
Increase - tax positions in current periods | 1,144 |  |  | 1,164 |  |  | 1,808 |
Ending balance | $ | 18,910 |  |  | $ | 17,619 |  |  | $ | 17,021 |

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