| Balance Sheet Components | 5. Balance Sheet Components Accounts receivable, net Accounts receivable, net consist of the following:
December 30, September 30,
(In thousands)
Accounts receivable $ 146,245 $ 99,369
Allowance for credit losses ( 2,369 ) ( 2,711 )
Allowance for sales incentives ( 63,065 ) ( 29,075 )
Accounts receivable, net of allowances $ 80,811 $ 67,583 Inventories Inventories consist of the following:
December 30, September 30,
(In thousands)
Finished goods $ 113,354 $ 281,571
Component parts 59,689 64,950
Inventories $ 173,043 $ 346,521 As of December 30, 2023, and September 30, 2023, inventory write-downs were $ 35.1 million and $ 29.7 million, respectively. Goodwill The following table presents the changes in carrying amount of goodwill during the three months ended December 30, 2023:
(In thousands)
Balance as of September 30, 2023 $ 80,420
Effect of exchange rate changes on goodwill 1,868
Balance as of December 30, 2023 $ 82,288 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:
December 30, 2023
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 $ ( 131 ) $ 7 $ 327 4.25
Technology-based 31,480 ( 13,062 ) — 18,418 4.76
Total finite-lived intangible assets 31,931 ( 13,193 ) 7 18,745 4.75
In-process research and development not subject to amortization 71,759 — 1,087 72,846
Total intangible assets $ 103,690 $ ( 13,193 ) $ 1,094 $ 91,591 The following table summarizes the estimated future amortization expense of the Company's intangible assets as of December 30, 2023:
Fiscal years ending Future Amortization Expense
(In thousands)
Remainder of fiscal 2024 $ 4,479
2025 3,372
2026 3,043
2027 3,027
2028 2,910
2029 and thereafter 1,914
Total future amortization expense $ 18,745 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 were as follows:
December 30, September 30,
Cloud computing implementation costs $ 24,177 $ 24,177
Less: accumulated amortization 7,080 6,207
Cloud computing implementation costs, net $ 17,097 $ 17,970 Amortization expenses for implementation costs for cloud-based computing arrangements for the three months ended December 30, 2023, and December 31, 2022 were $ 0.9 million and $ 1.0 million, respectively. Accrued expenses Accrued expenses consisted of the following:
December 30, September 30,
(In thousands)
Accrued inventory and supply chain costs $ 33,555 $ 48,384
Accrued taxes 28,364 11,410
Accrued advertising and marketing 18,240 13,029
Accrued general and administrative expenses 9,353 9,924
Other accrued payables 5,100 2,672
Accrued product development 3,380 4,298
Total accrued expenses $ 97,992 $ 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 three-month period ended December 31, 2022, 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:
Three Months Ended
December 30, December 31,
(In thousands)
Deferred revenue, beginning of period $ 80,838 $ 83,470
Recognition of revenue included in beginning of period deferred revenue ( 4,023 ) ( 11,520 )
Revenue deferred, net of revenue recognized on contracts in the respective period 9,090 10,031
Deferred revenue, end of period $ 85,905 $ 81,981 The Company expects the following recognition of deferred revenue as of December 30, 2023:
For the fiscal years ending
2024 2025 2026 2027 2028 and Total
(In thousands)
Deferred revenue expected to be recognized $ 16,018 $ 18,685 $ 16,273 $ 13,596 $ 21,333 $ 85,905 Other current liabilities Other current liabilities consist of the following:
December 30, September 30,
(In thousands)
Reserve for returns $ 31,796 $ 21,462
Other 10,378 4,172
Warranty liability 8,772 7,466
Short-term operating lease liabilities 1,737 1,153
Total other current liabilities $ 52,683 $ 34,253 The following table presents the changes in the Company’s warranty liability:
December 30, December 31,
(In thousands)
Warranty liability, beginning of period $ 7,466 $ 5,771
Provision for warranties issued during the period 5,582 6,177
Settlements of warranty claims during the period ( 4,276 ) ( 2,031 )
Warranty liability, end of period $ 8,772 $ 9,917 Leases On July 13, 2023, as part of the Company's ongoing evaluation of its real estate needs and overall lease consolidation initiatives, the Company entered into a lease agreement for a new headquarters location for approximately 50,000 square feet of office space located in Goleta, California. The lease expires in May 2031 , with no option to extend. The Company took possession of the leased premises in October 2023, resulting in an increase in right-of-use assets and lease liabilities totaling $ 7.4 million and $ 7.8 million, respectively. The Company intends to relocate its headquarters to this space later in fiscal 2024. |
