Balance Sheet Components

3 Months Ended

Jan. 02, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Balance Sheet Components

Accounts receivable, net of allowances

Accounts receivable, net of allowances, consist of the following:

	January 2, 2021		October 3, 2020
(In thousands)
Accounts receivable	$	164,912	$	73,757
Allowance for credit losses	(1,538)		(1,307)
Allowance for sales incentives	(49,758)		(17,515)
Accounts receivable, net of allowances	$	113,616	$	54,935

Inventories, net

Inventories consist of the following:

	January 2, 2021		October 3, 2020
(In thousands)
Finished goods	$	79,213	$	172,184
Component parts	8,981		8,646
Inventories	$	88,194	$	180,830

The Company writes down inventory as a result of excess and obsolete inventories, or when it believes that the net realizable value of inventories is less than the carrying value.

Intangible assets

The following table reflects the changes in the net carrying amount of the components of intangible assets associated with the Company's acquisition activity:

	January 2, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted-Average Remaining Life
(In thousands, except weighted-average remaining life)
Technology	$	7,875	$	(2,018)	$	5,857	3.31
Other	39		(21)		18		0.92
Total finite-lived intangible assets	7,914		(2,039)		5,875		3.30
In-process research and development and other intangible assets not subject to amortization	20,100		—		20,100
Total intangible assets	$	28,014	$	(2,039)	$	25,975

The following table summarizes estimated future amortization expense of the Company's intangible assets as of January 2, 2021:

Fiscal years ending	Future Amortization Expense
(In thousands)
Remainder of fiscal 2021	$	1,478
2022	1,955
2023	1,253
2024	1,020
2025	169
2026 and thereafter	—
Total future amortization expense	$	5,875

Accrued expenses

Accrued expenses consist of the following:

	January 2, 2021		October 3, 2020
(In thousands)
Accrued advertising and marketing	$	26,681	$	10,609
Accrued taxes	20,300		6,252
Accrued inventory	12,130		2,843
Accrued manufacturing, logistics and product development	17,765		9,753
Accrued general and administrative expenses	10,935		10,068
Other accrued payables	8,622		5,524
Total accrued expenses	$	96,433	$	45,049

Deferred revenue

Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue primarily relates to revenue allocated to unspecified software upgrades and cloud-based services.

The following table presents the changes in the Company’s deferred revenue for the three months ended January 2, 2021 and December 28, 2019:

	January 2, 2021		December 28, 2019
(In thousands)
Deferred revenue, beginning of period	$	62,389	$	56,449
Recognition of revenue included in beginning of period deferred revenue	(3,357)		(3,238)
Revenue deferred, net of revenue recognized on contracts in the respective period	9,809		8,435
Deferred revenue, end of period	$	68,841	$	61,646

The Company expects the following recognition of deferred revenue as of January 2, 2021:

	For the fiscal years ending
	2021		2022		2023		2024		2025 and Beyond		Total
(In thousands)
Deferred revenue expected to be recognized	$	12,488	$	14,772	$	12,844	$	10,793	$	17,944	$	68,841

Other current liabilities

Other current liabilities consist of the following:

	January 2, 2021		October 3, 2020
(In thousands)
Reserve for returns	$	23,723	$	14,195
Short-term operating lease liabilities	10,831		10,910
Product warranty liability	6,446		3,628
Other	7,828		2,417
Total other current liabilities	$	48,828	$	31,150

The following table presents the changes in the Company’s warranty liability for the three months ended January 2, 2021 and December 28, 2019:

	January 2, 2021		December 28, 2019
(In thousands)
Warranty liability, beginning of period	$	3,628	$	3,254
Provision for warranties issued during the period	6,277		5,080
Settlements of warranty claims during the period	(3,459)		(2,633)
Warranty liability, end of period	$	6,446	$	5,701