Composition Of Certain Financial Statement Captions

6 Months Ended

Mar. 26, 2021

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 March 26, 2021 and September 25, 2020 (amounts displayed in thousands).

Accounts Receivable and Contract Assets

	March 26, 2021		September 25, 2020
Trade accounts receivable	$	171,383	$	147,618
Accounts receivable from patent administration program licensees	123,793		48,630
Contract assets	233,568		161,357
Accounts receivable, gross and contract assets, gross	528,744		357,605
Less: allowance for credit losses	(11,860)		(15,908)
Total	$	516,884	$	341,697

Accounts receivable, gross includes unbilled accounts receivable balances of $118.2 million and $62.1 million as of March 26, 2021 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
March 26, 2021	15,908		(65)		(3,983)		11,860

Inventories

	March 26, 2021		September 25, 2020
Raw materials	$	3,517	$	3,770
Work in process	6,082		9,214
Finished goods	5,282		12,566
Total	$	14,881	$	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 $2.1 million and $2.6 million of raw materials inventory within other non-current assets in our condensed consolidated balance sheets as of March 26, 2021 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

	March 26, 2021		September 25, 2020
Prepaid expenses	$	20,078	$	17,884
Other current assets	27,227		35,138
Total	$	47,305	$	53,022

In fiscal year 2019, management committed to a plan to sell a property, which included land and a building, after the lease on the property expired and we re-assessed the real estate needs of our business. 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. In the first quarter of fiscal 2021, we finalized the sale on this property, and as a result, we realized 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 the controlling interest, therefore 51% of the gain realized in gain on sale of assets has been attributed to the controlling interest.

Accrued Liabilities

	March 26, 2021		September 25, 2020
Amounts payable to patent administration program partners	$	79,089	$	60,427
Accrued compensation and benefits	97,296		89,684
Accrued professional fees	11,541		10,344
Unpaid property, plant, and equipment additions	16,444		15,102
Accrued customer refunds	4,824		10,053
Accrued market development funds	19,860		6,612
Other accrued liabilities	25,109		27,752
Total	$	254,163	$	219,974

Other Non-Current Liabilities

	March 26, 2021		September 25, 2020
Supplemental retirement plan obligations	$	4,447	$	4,181
Non-current tax liabilities (1)	88,222		85,943
Other liabilities	25,890		32,030
Total	$	118,559	$	122,154

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