Balance Sheet Components

9 Months Ended

Jun. 29, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

6. Balance Sheet Components

Accounts receivable, net

Accounts receivable, net consist of the following:

	June 29, 2024		September 30, 2023
(In thousands)
Accounts receivable	$	178,713	$	99,369
Allowance for credit losses	(2,565)		(2,711)
Allowance for sales incentives	(44,567)		(29,075)
Accounts receivable, net of allowances	$	131,581	$	67,583

Inventories

Inventories consist of the following:

	June 29, 2024		September 30, 2023
(In thousands)
Finished goods	$	102,403	$	281,571
Component parts	52,500		64,950
Inventories	$	154,903	$	346,521

As of June 29, 2024 and September 30, 2023, inventory write-downs were $28.3 million and $29.7 million, respectively.

Goodwill

The following table presents the changes in carrying amount of goodwill during the nine months ended June 29, 2024:

(In thousands)
Balance as of September 30, 2023	$	80,420
Effect of exchange rate changes on goodwill	560
Balance as of June 29, 2024	$	80,980

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:

	June 29, 2024
	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation		Net Carrying Value		Weighted-Average Remaining Life
(In thousands, except weighted-average remaining life)
Trade name	$	451	$	(167)	$	(6)	$	278	3.75
Technology-based	31,480		(16,010)		—		15,470		4.57
Total finite-lived intangible assets	31,931		(16,177)		(6)		15,748		4.56
In-process research and development not subject to amortization	71,759		—		(1,053)		70,706
Total intangible assets	$	103,690	$	(16,177)	$	(1,059)	$	86,454

The following table summarizes the estimated future amortization expense of the Company's intangible assets as of June 29, 2024:

Fiscal years ending	Future Amortization Expense
(In thousands)
Remainder of fiscal 2024	$	1,493
2025	3,369
2026	3,040
2027	3,024
2028	2,908
2029 and thereafter	1,914
Total future amortization expense	$	15,748

Cloud Computing Arrangements

Capitalized costs to implement cloud computing arrangements net of accumulated amortization are reported as a component of other noncurrent assets on the Company's condensed consolidated balance sheets and were as follows:

	June 29, 2024		September 30, 2023
Cloud computing implementation costs	$	24,601	$	24,177
Less: accumulated amortization	8,825		6,207
Cloud computing implementation costs, net	$	15,776	$	17,970

Amortization expenses for implementation costs for cloud-based computing arrangements for the three and nine months ended June 29, 2024, were $0.9 million and $2.6 million, respectively. Amortization expenses for implementation costs for cloud-based computing arrangements for the three and nine months ended July 1, 2023, were $0.9 million and $2.8 million, respectively.

Accrued expenses

Accrued expenses consisted of the following:

	June 29, 2024		September 30, 2023
(In thousands)
Accrued inventory and supply chain costs	$	40,858	$	48,384
Accrued taxes	16,181		11,410
Accrued advertising and marketing	13,208		13,029
Accrued general and administrative expenses	10,109		9,924
Accrued product development	2,845		4,298
Other accrued payables	5,757		2,672
Total accrued expenses	$	88,958	$	89,717

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. Recognition of revenue for the nine months ended July 1, 2023, includes $9.2 million of deferred revenue from the fourth quarter of fiscal 2022, related to newly launched products sold to resellers not recognized as revenue until the date general availability was reached, which was the first quarter of fiscal 2023.

The following table presents the changes in the Company’s deferred revenue:

	Nine Months Ended
	June 29, 2024		July 1, 2023
(In thousands)
Deferred revenue, beginning of period	$	80,838	$	83,470
Recognition of revenue included in beginning of period deferred revenue	(17,723)		(21,049)
Revenue deferred, net of revenue recognized on contracts in the respective period	19,871		19,844
Deferred revenue, end of period	$	82,986	$	82,265

The Company expects the following recognition of deferred revenue as of June 29, 2024:

	For the fiscal years ending
	Remainder of 2024		2025		2026		2027		2028 and Beyond		Total
(In thousands)
Deferred revenue expected to be recognized	$	5,853	$	19,668	$	17,286	$	14,640	$	25,539	$	82,986

Other current liabilities

Other current liabilities consist of the following:

	June 29, 2024		September 30, 2023
(In thousands)
Reserve for returns	$	23,338	$	21,462
Warranty liability	8,790		7,466
Short-term operating lease liabilities	7,722		1,153
Other	4,891		4,172
Total other current liabilities	$	44,741	$	34,253

The following table presents the changes in the Company’s warranty liability:

	June 29, 2024		July 1, 2023
(In thousands)
Warranty liability, beginning of period	$	7,466	$	5,771
Provision for warranties issued during the period	13,363		10,670
Settlements of warranty claims during the period	(12,039)		(7,472)
Warranty liability, end of period	$	8,790	$	8,969