Income Taxes (Tables)

12 Months Ended

Oct. 03, 2020

Income Tax Disclosure [Abstract]

Schedule of income (loss) before provision for (benefit from) income taxes

The Company’s income (loss) before provision for income taxes for fiscal 2020, 2019 and 2018 were as follows: 

	October 3, 2020		September 28, 2019		September 29, 2018
(In thousands)
Domestic	$	(15,194)	$	(858)	$	2,803
Foreign	(4,889)		(218)		(17,351)
Loss before provision for income taxes	$	(20,083)	$	(1,076)	$	(14,548)

Schedule of provision for (benefit from) income taxes

Components of the provision for income taxes consisted of the following:

	October 3, 2020		September 28, 2019		September 29, 2018
(In thousands)
Current:
U.S. Federal	$	(1,388)	$	1,366	$	—
U.S. State	724		1,132		177
Foreign	1,220		1,463		816
Total current	556		3,961		993
Deferred:
U.S. Federal	—		—		(168)
U.S. State	—		—		—
Foreign	(524)		(271)		231
Total deferred	(524)		(271)		63
Provision for (benefit from) income taxes	$	32	$	3,690	$	1,056

Schedule of deferred tax assets and liabilities

Components of the Company’s deferred income tax assets and liabilities are as follows: 

	October 3, 2020		September 28, 2019
(In thousands)
Deferred tax assets
Accrued expenses and reserves	$	12,014	$	12,582
Deferred revenue	11,831		11,185
U.S. net operating loss carryforwards	8,242		15,112
Foreign net operating loss carryforwards	12,183		3,414
Tax credit carryforwards	53,543		43,411
Stock-based compensation	11,018		10,368
Right-of-Use Liability	14,377		—
Amortization	7,648		4,131
Depreciation	1,101		672
Other	603		453
Total deferred tax assets	132,560		101,328
Valuation allowance	(113,939)		(95,088)
Deferred tax assets, net of valuation allowance	18,621		6,240
Deferred tax liabilities
Tax accounting method change	(2,946)		(5,086)
Right-of-Use Asset	(9,914)		—
Amortization	(6,093)		—
Depreciation	(187)		—
Other	(115)		—
Total deferred tax liabilities	(19,255)		(5,086)
Net deferred tax assets (liabilities)	$	(634)	$	1,154
Reported as
Deferred tax assets	$	1,800	$	1,154
Deferred tax liabilities	(2,434)		—
Net deferred tax assets (liabilities)	$	(634)	$	1,154

Summary of changes in valuation allowance

The following table summarizes changes in the valuation allowance for fiscal 2020, 2019 and 2018:

(In thousands)	October 3, 2020		September 28, 2019		September 29, 2018
Beginning balance	$	95,088	$	72,380	$	94,956
Increase (decrease) during the period	18,851		22,708		(22,576)
Ending balance	$	113,939	$	95,088	$	72,380

Schedule of effective income tax rate reconciliation

Reconciliation of U.S. statutory federal income taxes to the Company’s provision for (benefit from) income taxes is as follows:

(In thousands)	October 3, 2020		September 28, 2019		September 29, 2018
U.S. federal income taxes at statutory rate	$	(4,217)	$	(226)	$	(3,570)
U.S. state and local income taxes	(2,798)		(9,315)		(1,441)
Foreign income tax rate differential	(75)		129		(53)
Stock-based compensation	869		(2,399)		4,025
Federal research tax credits	(8,012)		(8,418)		(4,333)
Unrecognized federal tax benefits	815		(2,806)		1,990
Change in tax rate	—		1,161		25,725
Net Impact of GILTI	—		239		—
BEAT	(781)		781		—
Other	598		822		259
Change in valuation allowance	13,633		23,722		(21,546)
Provision for income taxes	$	32	$	3,690	$	1,056

Schedule of changes in unrecognized tax benefits

Change in unrecognized tax benefits as a result of uncertain tax positions are as follows:

	October 3, 2020		September 28, 2019		September 29, 2018
(In thousands)
Beginning balance	$	12,527	$	17,794	$	13,780
Increase (decrease) - tax positions in prior periods	(768)		(8,226)		$	636
Increase (decrease) - tax positions in current periods	2,962		2,959		$	3,378
Ending balance	$	14,721	$	12,527	$	17,794