Concentrations of Credit Risk

12 Months Ended

Apr. 03, 2021

Risks and Uncertainties [Abstract]

CONCENTRATIONS OF CREDIT RISK

CONCENTRATIONS OF CREDIT RISK The Company’s principal financial instrument subject to potential concentration of credit risk is accounts receivable, which is unsecured. The Company provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of accounts receivable. The Company's trade receivables are evaluated on a collective (pool) basis and aggregated on the basis of similar risk characteristics, adjusting for broad-based economic indicators as well as customer specific factors. The Company has adopted credit policies and standards intended to accommodate industry growth and inherent risk and it believes that credit risks are moderated by the financial stability of its major customers, conservative payment terms and the Company’s strict credit policies.

The Company provides products to its largest end customer, Apple Inc. through sales to multiple contract manufacturers, which in the aggregate accounted for approximately 30%, 33% and 32% of total revenue in fiscal years 2021, 2020 and 2019, respectively. Huawei Technologies Co., Ltd. and affiliates ("Huawei") accounted for less than 5%, 10% and 15% of total revenue in fiscal years 2021, 2020 and 2019, respectively. These customers primarily purchase radio frequency ("RF") solutions for a variety of mobile devices.

In May 2019, the Bureau of Industry and Security of the U.S. Department of Commerce ("Commerce") added Huawei Technologies Co., Ltd. and over 100 of its affiliates to the Entity List maintained by Commerce, which caused the Company to temporarily suspend the export, reexport, and transfer of products to Huawei. In August 2020, Commerce issued a final rule adding additional Huawei non-U.S. affiliates to the Entity List, confirming the expiration of a temporary general license applicable to Huawei, and amending the foreign-produced direct product rule in a manner that represents a significant expansion of its application to Huawei. While the Company was able to ship certain products to Huawei in fiscal years 2021 and 2020, trade restrictions and the ability to secure any required licenses will continue to impact sales to Huawei.

The Company's three largest accounts receivable balances comprised approximately 58% and 49% of aggregate gross accounts receivable as of April 3, 2021 and March 28, 2020, respectively.