Composition Of Certain Financial Statement Captions

3 Months Ended

Dec. 25, 2020

Composition Of Certain Financial Statement Captions [Abstract]

Composition Of Certain Financial Statement Captions

4. Composition of Certain Financial Statement Captions

The following tables present detailed information from our condensed consolidated balance sheets as of December 25, 2020 and September 25, 2020 (amounts displayed in thousands, except as otherwise noted).

Accounts Receivable and Contract Assets

	December 25, 2020		September 25, 2020
Trade accounts receivable	$	172,952	$	147,618
Accounts receivable from patent administration program licensees	133,620		48,630
Contract assets	187,754		161,357
Accounts receivable, gross and contract assets, gross	494,326		357,605
Less: allowance for credit losses	(12,839)		(15,908)
Total	$	481,487	$	341,697

Accounts receivable, gross includes unbilled accounts receivable balances of $126.8 million and $62.1 million as of December 25, 2020 and September 25, 2020, respectively, related to amounts that are contractually owed. The unbilled balance represents our unconditional right to consideration related to fixed fee contracts which we are entitled to as a result of satisfying, or partially satisfying, performance obligations, as well as Via's unconditional right to consideration related to their patent administration programs.

We maintain a provision for estimated credit losses on receivables resulting from our customers' inability to make required payments. In determining the provision, we pool receivables with similar risk characteristics to evaluate the collectability of our accounts receivable. Risk characteristics considered in creating these risk pools include assessing historical or expected loss patterns, credit ratings, current economic conditions that could impact collectability of cash flows (such as the macroeconomic effects of COVID-19), and structure of customer agreements. In cases where circumstances have changed such that specific customers no longer share similar risk characteristics, customers are excluded from their current pool and their risk profiles are evaluated separately. We recognize allowances for credit losses based on our actual historical loss information, the current business environment, and reasonable and supportable forecasts. Actual future losses from uncollectible accounts may differ from our estimates.

Allowance for Credit Losses	Beginning Balance		Charges/(Credits) to G&A		Deductions		Ending Balance
For fiscal year ended:
September 25, 2020	$	9,775	$	7,689	$	(1,556)	$	15,908
December 25, 2020	15,908		(1,367)		(1,702)		12,839

Inventories

	December 25, 2020		September 25, 2020
Raw materials	$	4,691	$	3,770
Work in process	8,789		9,214
Finished goods	6,628		12,566
Total	$	20,108	$	25,550

Inventories are stated at the lower of cost and net realizable value. Inventory with a consumption period expected to exceed twelve months is recorded within other non-current assets in our condensed consolidated balance sheets. We have included $1.6 million and $2.6 million of raw materials inventory within other non-current assets in our balance sheets as of December 25, 2020 and September 25, 2020, respectively. Based on anticipated inventory consumption rates, and aside from existing write-downs due to excess inventory, we do not believe that material risk of obsolescence exists prior to ultimate sale.

Prepaid Expenses And Other Current Assets

	December 25, 2020		September 25, 2020
Prepaid expenses	$	18,716	$	17,884
Other current assets	32,674		35,138
Total	$	51,390	$	53,022

In fiscal year 2019, management committed to a plan to sell a property, which included land and a building. This property was previously classified as held for sale and was included in other current assets on the condensed consolidated balance sheets, with a carrying value of $2.2 million as of September 25, 2020. During the first quarter of fiscal 2021, we finalized the sale on this property, and as a result, we recognized a gain of $13.9 million, which was recorded to gain on sale of assets on the condensed consolidated statements of operations. The property was 51% owned by our controlling interest, therefore 51% of the gain recognized in gain on sale of assets has been attributed to our controlling interest.

Accrued Liabilities

	December 25, 2020		September 25, 2020
Accrued royalties	$	1,124	$	901
Amounts payable to patent administration program partners	97,985		60,427
Accrued compensation and benefits	86,219		89,684
Accrued professional fees	12,182		10,344
Unpaid PP&E additions	14,893		15,102
Accrued customer refunds	5,458		10,053
Other accrued liabilities	32,392		33,463
Total	$	250,253	$	219,974

Other Non-Current Liabilities

	December 25, 2020		September 25, 2020
Supplemental retirement plan obligations	$	4,298	$	4,181
Non-current tax liabilities (1)	87,376		85,943
Other liabilities	29,522		32,030
Total	$	121,196	$	122,154

(1)    Refer to Note 12 “Income Taxes” for additional information related to tax liabilities.