COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes)

3 Months Ended

Dec. 28, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS

Warranty Expense

The Company's equipment is generally shipped with a one-year warranty against manufacturing defects. The Company establishes reserves for estimated warranty expense when revenue for the related equipment is recognized. The reserve for estimated warranty expense is based upon historical experience and management's estimate of future warranty costs, including product part replacement, freight charges and labor costs incurred in correcting product failures during the warranty period.

The following table reflects the reserve for warranty activity for the three months ended December 28, 2019 and December 29, 2018: 

	Three months ended
(in thousands)	December 28, 2019			December 29, 2018
Reserve for warranty, beginning of period	$	14,185		$	14,475
Provision for warranty	3,495			3,086
Utilization of reserve	(2,966		)	(3,160		)
Reserve for warranty, end of period	$	14,714		$	14,401

Other Commitments and Contingencies

The following table reflects obligations not reflected on the Consolidated Condensed Balance Sheet as of December 28, 2019:

			Payments due by fiscal year
(in thousands)	Total		2020		2021		2022		2023		2024		thereafter
Inventory purchase obligation (1)	$	115,841	$	115,841	$	—	$	—	$	—	$	—	$	—

(1) The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancellable, however, some orders impose varying penalties and charges in the event of cancellation.

Concentrations

The following table reflects significant customer concentrations as a percentage of net revenue for the three months ended December 28, 2019 and December 29, 2018.

	Three months ended
	December 28, 2019	December 29, 2018
Micron Technology, Inc	*	18.5	%

* Represented less than 10% of total net revenue

The following table reflects significant customer concentrations as a percentage of total accounts receivable as of December 28, 2019 and December 29, 2018:

	As of
	December 28, 2019		December 29, 2018
Xinye (HK) Electronics. Co (1)	14.1	%	*
Forehope Electronic (Ningbo) Co., Ltd	14.0	%	*
Super Power International (1)	10.4	%	15.4	%
Micron Technology, Inc	*		17.7	%
Haoseng Industrial Company Limited (1)	*		15.5	%

(1) Distributor of the Company's products.

* Represented less than 10% of total accounts receivable