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Revenue Recognition
 3 Months Ended
Jan. 02, 2021
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
Three Months Ended
January 2, 2021December 28, 2019
OEM Laser SourcesIndustrial Lasers & SystemsOEM Laser SourcesIndustrial Lasers & Systems
Net sales:
Products(1)
$125,577 $89,312 $109,836 $93,903 
Other product and service revenues(2)
85,585 25,579 91,112 25,920 
Total net sales$211,162 $114,891 $200,948 $119,823 
(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 $16.0 million and $14.4 million for the three months ended January 2, 2021 and December 28, 2019, respectively, were recognized over time.


Sales by market application and segment
Three Months Ended
January 2, 2021December 28, 2019
OEM Laser SourcesIndustrial Lasers & SystemsOEM Laser SourcesIndustrial Lasers & Systems
Net sales:
Microelectronics$128,173 $20,675 $114,893 $15,653 
Precision manufacturing11,859 69,591 10,395 77,977 
Instrumentation67,276 17,951 68,186 18,994 
Aerospace and defense3,854 6,674 7,474 7,199 
Total net sales$211,162 $114,891 $200,948 $119,823 


See Note 19, "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 condensed consolidated balance sheets. Payment terms vary by customer.

A rollforward of our customer deposits and deferred revenue are as follows (in thousands):
Three Months Ended
January 2, 2021December 28, 2019
Beginning balance (1)
$56,339 $42,550 
Additions to customer deposits and deferred revenue45,694 42,633 
Amount of customer deposits and deferred revenue recognized in income(42,081)(40,360)
Translation adjustments1,187 652 
Ending balance (2)
$61,139 $45,475 

(1) Beginning customer deposits and deferred revenue as of October 3, 2020 include $42,715 of current portion and $13,624 of long-term portion. Beginning customer deposits and deferred revenue as of September 28, 2019 include $34,538 of current portion and $8,012 of long-term portion.

(2) Ending customer deposits and deferred revenue as of January 2, 2021 include $48,119 of current portion and $13,020 of long-term portion. Ending customer deposits and deferred revenue as of December 28, 2019 include $35,894 of current portion and $9,581 of long-term portion.    
    
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 of January 2, 2021 (in thousands):
Remainder of fiscal 2021ThereafterTotal
Performance obligations as of January 2, 2021
$45,524 $15,615 $61,139