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Revenue Recognition (Notes)
 12 Months Ended
Oct. 03, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
Disaggregation of Revenue
Based on the information that our chief operating decision maker ("CODM") uses to manage the business, we disaggregate revenue by type and market application within each segment. No other level of disaggregation is required considering the type of products, customers, markets, contracts, duration of contracts, timing of transfer of control and sales channels.
The following tables summarize revenue from contracts with customers (in thousands):
Sales by revenue type and segment
Fiscal
202020192018
OEM Laser SourcesIndustrial Lasers & SystemsOEM Laser SourcesIndustrial Lasers & SystemsOEM Laser SourcesIndustrial Lasers & Systems
Net sales:
Products(1)
$441,476 $369,342 $532,863 $430,878 $890,591 $512,818 
Other product and service revenues(2)
317,453 100,728 353,813 113,086 368,886 130,278 
Total net sales$758,929 $470,070 $886,676 $543,964 $1,259,477 $643,096 
(1) Net sales primarily recognized at a point in time.
(2) Includes sales of spare parts, related accessories, and other consumable parts as well as revenues from service agreements, of which $62.4 million for fiscal 2020 was recognized over time.

Sales by market application and segment
Fiscal
202020192018
OEM Laser SourcesIndustrial Lasers & SystemsOEM Laser SourcesIndustrial Lasers & SystemsOEM Laser SourcesIndustrial Lasers & Systems
Net sales:
Microelectronics$466,780 $71,755 $568,387 $63,789 $951,166 $85,188 
Materials processing36,129 299,621 38,017 366,861 46,467 474,437 
OEM components and instrumentation158,748 89,799 163,095 103,693 140,616 80,207 
Scientific and government programs97,272 8,895 117,177 9,621 121,228 3,264 
Total net sales$758,929 $470,070 $886,676 $543,964 $1,259,477 $643,096 
See Note 18, "Segment and Geographic Information" for revenue disaggregation by reportable segment and geographic region.
Contract Balances
We record accounts receivable when we have an unconditional right to the consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of customer deposits and deferred revenue, where we have unsatisfied or partly satisfied performance obligations. Contract liabilities classified as customer deposits are included in other current liabilities and contract liabilities classified as deferred revenue are included in other current liabilities or other long-term liabilities on our consolidated balance sheets. Payment terms vary by customer.
A rollforward of our customer deposits and deferred revenue are as follows (in thousands):
Fiscal
20202019
Beginning balance$42,550 $55,637 
Amount of customer deposits and deferred revenue recognized in income(171,521)(189,318)
Additions to customer deposits and deferred revenue183,604 177,753 
Translation adjustments1,706 (1,522)
Ending balance$56,339 $42,550 
Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. The following table includes estimated revenue expected to be recognized in the future related to performance obligations for sales of maintenance agreements, extended warranties, installation, and contracts with customer acceptance provisions included in customer deposits and deferred revenue as follows (in thousands):
1 yearThereafterTotal
Performance obligations as of September 28, 2019$34,538 $8,012 $42,550 
Performance obligations as of October 3, 202042,715 13,624 56,339