COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Notes)

6 Months Ended

Mar. 28, 2020

Commitments and Contingencies Disclosure [Abstract]

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 and six months ended March 28, 2020 and March 30, 2019:



	Three months ended						Six months ended
(in thousands)	March 28, 2020			March 30, 2019			March 28, 2020			March 30, 2019
Reserve for warranty, beginning of period	$	14,714		$	14,401		$	14,185		$	14,475
Provision for warranty	2,923			2,645			6,418			5,731
Utilization of reserve	(3,269		)	(3,161		)	(6,235		)	(6,321		)
Reserve for warranty, end of period	$	14,368		$	13,885		$	14,368		$	13,885

Other Commitments and Contingencies

The following table reflects obligations not reflected on the Consolidated Condensed Balance Sheet as of March 28, 2020:



			Payments due by fiscal year
(in thousands)	Total		2020		2021		2022		2023		2024		thereafter
Inventory purchase obligation ⁽¹⁾	$	148,892	$	148,892	$	—	$	—	$	—	$	—	$	—


(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 six months ended March 28, 2020 and March 30, 2019.



	Six months ended
	March 28, 2020		March 30, 2019
Xinye (HK) Electronics. Co ⁽¹⁾	10.6	%	*
Micron Technology, Inc	*		15.3	%

* Represented less than 10% of total net revenue

The following table reflects significant customer concentrations as a percentage of total accounts receivable as of March 28, 2020 and March 30, 2019:



	As of
	March 28, 2020		March 30, 2019
Xinye (HK) Electronics. Co ⁽¹⁾	17.3	%	*
Haoseng Industrial Company Limited ⁽¹⁾	12.3	%	*
Micron Technology, Inc	*		19.4	%
Super Power International ⁽¹⁾	*		12.5	%

(1) Distributor of the Company's products.

* Represented less than 10% of total accounts receivable