Balance sheet components

The following tables show the Company’s balance sheet component details as of September 28, 2019 and September 29, 2018.

Accounts receivable allowances

The following table summarizes changes in the allowance for doubtful accounts for fiscal 2019, 2018 and 2017:



	2019			2018			2017
(In thousands)
Beginning balance	$	872		$	804		$	726
Increases	1,034			635			449
Write-offs	(651		)	(567		)	(371		)
Ending balance	$	1,255		$	872		$	804

The following table summarizes the changes in the allowance for sales incentives for fiscal 2019, 2018 and 2017:



	2019			2018			2017
(In thousands)
Beginning balance	$	11,754		$	11,195		$	8,913
Charged to revenue	87,703			90,246			65,879
Utilization of sales incentive allowance	(79,406		)	(89,687		)	(63,597		)
Ending balance	$	20,051		$	11,754		$	11,195

Inventories

Inventories, net, consist of the following:



	2019		2018
(In thousands)
Finished goods	$	207,723	$	176,181
Components	12,061		17,012
Inventories	$	219,784	$	193,193

Property and equipment, net

Property and equipment, net consist of the following:



	2019			2018
(In thousands)
Computer hardware and software	$	47,775		$	46,385
Furniture and fixtures	9,594			9,696
Tooling and production line test equipment	54,536			47,297
Leasehold improvements	58,944			53,962
Product displays	45,672			40,265
Total property and equipment	216,521			197,605
Accumulated depreciation and amortization	(138,382		)	(112,234		)
Property and equipment, net	$	78,139		$	85,371

Depreciation expense was $36.4 million, $39.4 million and $35.0 million for fiscal 2019, 2018 and 2017, respectively. During fiscal 2019, 2018 and 2017, the Company disposed of gross fixed assets of $10.2 million, $35.8 million and $11.5 million, with accumulated depreciation of $9.3 million, $35.6 million and $11.2 million, respectively. Disposals of fixed assets were recorded in operating expenses in the consolidated statements of operations and comprehensive loss and resulted in losses of $0.8 million, $0.2 million and $0.2 million for fiscal 2019, 2018 and 2017, respectively.

Accrued expenses

Accrued expenses consisted of the following:



	2019		2018
(In thousands)
Accrued advertising and marketing	$	25,662	$	11,613
Accrued taxes	4,388		4,175
Accrued inventory	6,494		4,179
Accrued manufacturing, logistics and product development	14,783		8,290
Accrued general and administrative	12,455		3,322
Other accrued payables	6,074		7,108
Total accrued expenses	$	69,856	$	38,687

The following table summarizes the changes in the deferred revenue balances:



	2019			2018			2017
(In thousands)
Deferred revenue, beginning of period	$	50,967		$	45,567		$	36,160
Recognition of revenue included in beginning of period deferred revenue	(11,934		)	(10,627		)	(6,878		)
Revenue deferred, net of revenue recognized on contracts in the respective period	17,416			16,027			16,285
Deferred revenue, end of period	$	56,449		$	50,967		$	45,567

The Company expected the following recognition of deferred revenue as of September 28, 2019:



	For the fiscal years ending
(In thousands)	2020		2021		2022		2023		2024 and Beyond		Total
Revenue expected to be recognized	$	13,654	$	12,143	$	10,297	$	8,369	$	11,986	$	56,449

Other current liabilities

Other current liabilities consist of the following:



	September 28, 2019		September 29, 2018
(In thousands)
Reserve for returns	$	12,110	$	5,005
Product warranty liability	3,254		2,450
Other	2,184		3,403
Total other current liabilities	$	17,548	$	10,858

The following table presents the changes in the Company’s warranty liability for the fiscal years ended September 28, 2019 and September 29, 2018:



	September 28, 2019			September 29, 2018
(In thousands)
Warranty liability, beginning of period	$	2,450		$	2,437
Provision for warranties issued during the period	12,795			10,678
Settlements of warranty claims during the period	(11,991		)	(10,665		)
Warranty liability, end of period	$	3,254		$	2,450