Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 02, 2020 | Nov. 12, 2020 | Apr. 03, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 2, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-35451 | ||
Entity Registrant Name | MACOM Technology Solutions Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-0306875 | ||
Entity Address, Address Line One | 100 Chelmsford Street | ||
Entity Address, City or Town | Lowell | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01851 | ||
City Area Code | 978 | ||
Local Phone Number | 656-2500 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | MTSI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 864.9 | ||
Entity Common Stock, Share Outstanding | 67,961,663 | ||
Documents Incorporated by Reference [Text Block] | Part III incorporates certain information by reference from the registrant's definitive proxy statement for the 2021 Annual Meeting of Stockholders, which will be filed no later than 120 days after the close of the registrant's fiscal year ended October 2, 2020. | ||
Entity Central Index Key | 0001493594 | ||
Current Fiscal Year End Date | --10-02 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 129,441 | $ 75,519 |
Short-term investments | 203,711 | 101,226 |
Accounts receivable | 45,884 | 69,790 |
Inventories | 91,584 | 107,880 |
Income tax receivable | 1,240 | 16,661 |
Prepaid and other current assets | 9,659 | 27,506 |
Total current assets | 481,519 | 398,582 |
Property and equipment, net | 118,866 | 132,647 |
Goodwill | 315,012 | 314,727 |
Intangible assets, net | 130,898 | 181,228 |
Deferred income taxes | 41,935 | 43,812 |
Other investments | 17,745 | 23,613 |
Other long-term assets | 40,453 | 10,965 |
Total assets | 1,146,428 | 1,105,574 |
Current liabilities: | ||
Current portion of finance lease obligations and other | 1,368 | 1,084 |
Current portion of long-term debt | 6,885 | 6,885 |
Accounts payable | 23,043 | 24,822 |
Accrued liabilities | 63,654 | 42,045 |
Total current liabilities | 94,950 | 74,836 |
Finance lease obligations and other, less current portion | 28,994 | 29,506 |
Long-term debt, less current portion | 652,172 | 655,272 |
Warrant liability | 25,312 | 12,364 |
Other long-term liabilities | 44,854 | 19,700 |
Total liabilities | 846,282 | 791,678 |
Stockholders' equity: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 67 | 66 |
Treasury Stock, Value | (330) | (330) |
Accumulated other comprehensive income | 5,009 | 4,358 |
Additional paid-in capital | 1,135,127 | 1,101,576 |
Accumulated deficit | (839,727) | (791,774) |
Total stockholders' equity | 300,146 | 313,896 |
Total liabilities and stockholders' equity | $ 1,146,428 | $ 1,105,574 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 02, 2020 | Sep. 27, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 66,921,000 | 66,177,000 |
Common stock, outstanding (in shares) | 66,898,000 | 66,154,000 |
Common stock, subject to forfeiture (in shares) | 5,414 | 0 |
Treasury stock (in shares) | 23,000 | 23,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 530,037 | $ 499,708 | $ 570,398 |
Cost of revenue | 259,871 | 279,000 | 324,692 |
Gross profit | 270,166 | 220,708 | 245,706 |
Operating expenses: | |||
Research and development | 141,333 | 163,469 | 177,713 |
Selling, general and administrative | 124,306 | 153,286 | 161,673 |
Impairment charges | 0 | 264,786 | 6,575 |
Restructuring charges | 1,139 | 19,543 | 6,265 |
Total operating expenses | 266,778 | 601,084 | 352,226 |
Income (loss) from operations | 3,388 | (380,376) | (106,520) |
Other (expense) income: | |||
Warrant liability (expense) gain | (12,948) | 765 | 27,646 |
Interest expense, net | (27,380) | (35,803) | (31,338) |
Other expense | (4,622) | (7,739) | (45,023) |
Total other expense, net | (44,950) | (42,777) | (48,715) |
Loss before income taxes | (41,562) | (423,153) | (155,235) |
Income tax expense (benefit) | 4,516 | (39,355) | (21,473) |
Loss from continuing operations | (46,078) | (383,798) | (133,762) |
Loss from discontinued operations | 0 | 0 | (6,215) |
Net loss | $ (46,078) | $ (383,798) | $ (139,977) |
Basic loss per share: | |||
Loss from continuing operations (in USD per share) | $ (0.69) | $ (5.84) | $ (2.07) |
Loss from discontinued operations (in USD per share) | 0 | 0 | (0.10) |
Loss per share-basic (in USD per share) | (0.69) | (5.84) | (2.16) |
Diluted loss per share: | |||
Loss from continuing operations (in USD per share) | (0.69) | (5.84) | (2.47) |
Loss from discontinued operations (in USD per share) | 0 | 0 | (0.10) |
Loss per share-diluted (in USD per share) | $ (0.69) | $ (5.84) | $ (2.57) |
Shares used: | |||
Basic (in shares) | 66,606 | 65,686 | 64,741 |
Diluted (in shares) | 66,606 | 65,686 | 65,311 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (46,078) | $ (383,798) | $ (139,977) |
Unrealized gain (loss) on short-term investments, net of tax | 193 | 477 | (287) |
Foreign currency translation gain (loss), net of tax | 458 | 1,693 | (502) |
Other comprehensive income (loss), net of tax | 651 | 2,170 | (789) |
Total comprehensive loss | $ (45,427) | $ (381,628) | $ (140,766) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Additional Paid-In Capital | Accumulated Deficit |
Beginning Balance (in shares) at Sep. 29, 2017 | 64,279 | |||||
Beginning balance at Sep. 29, 2017 | $ 777,374 | $ 64 | $ (330) | $ 2,977 | $ 1,041,644 | $ (266,981) |
Beginning Balance Treasury stock (in shares) at Sep. 29, 2017 | (23) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock option exercise (in shares) | 27 | |||||
Stock option exercises | 76 | 76 | ||||
Vesting of restricted common stock and units (in shares) | 906 | |||||
Vesting of restricted common stock and units | 1 | $ 1 | ||||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 306 | |||||
Issuance of common stock pursuant to employee stock purchase plan | 6,881 | 6,881 | ||||
Shares repurchased for tax withholdings on restricted stock awards (in shares) | (316) | |||||
Shares repurchased for tax withholdings on restricted stock awards | (6,828) | $ 0 | (6,828) | |||
Share-based compensation | 31,937 | 31,937 | ||||
Other comprehensive loss, net of tax | (789) | (789) | ||||
Net loss | (139,977) | (139,977) | ||||
Ending Balance (in shares) at Sep. 28, 2018 | 65,202 | |||||
Ending balance at Sep. 28, 2018 | 668,675 | $ 65 | $ (330) | 2,188 | 1,074,728 | (407,976) |
Ending Balance Treasury stock (in shares) at Sep. 28, 2018 | (23) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1,018 | (1,018) | ||||
Stock option exercise (in shares) | 119 | |||||
Stock option exercises | 1,608 | 1,608 | ||||
Vesting of restricted common stock and units (in shares) | 673 | |||||
Vesting of restricted common stock and units | 1 | $ 1 | ||||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 422 | |||||
Issuance of common stock pursuant to employee stock purchase plan | 5,585 | 5,585 | ||||
Shares repurchased for tax withholdings on restricted stock awards (in shares) | (239) | |||||
Shares repurchased for tax withholdings on restricted stock awards | (4,137) | (4,137) | ||||
Share-based compensation | 23,792 | 23,792 | ||||
Other comprehensive loss, net of tax | 2,170 | 2,170 | ||||
Net loss | (383,798) | (383,798) | ||||
Ending Balance (in shares) at Sep. 27, 2019 | 66,177 | |||||
Ending balance at Sep. 27, 2019 | $ 313,896 | $ 66 | $ (330) | 4,358 | 1,101,576 | (791,774) |
Ending Balance Treasury stock (in shares) at Sep. 27, 2019 | 23 | (23) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | |||||
Stock option exercise (in shares) | 51 | 51 | ||||
Stock option exercises | $ 188 | $ 0 | 188 | |||
Vesting of restricted common stock and units (in shares) | 648 | |||||
Vesting of restricted common stock and units | 1 | $ 1 | ||||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 272 | |||||
Issuance of common stock pursuant to employee stock purchase plan | 4,397 | 4,397 | ||||
Shares repurchased for tax withholdings on restricted stock awards (in shares) | (227) | |||||
Shares repurchased for tax withholdings on restricted stock awards | (6,708) | $ 0 | (6,708) | |||
Share-based compensation | 35,674 | 35,674 | ||||
Other comprehensive loss, net of tax | 651 | 651 | ||||
Net loss | (46,078) | (46,078) | ||||
Ending Balance (in shares) at Oct. 02, 2020 | 66,921 | |||||
Ending balance at Oct. 02, 2020 | $ 300,146 | $ 67 | $ (330) | $ 5,009 | 1,135,127 | (839,727) |
Ending Balance Treasury stock (in shares) at Oct. 02, 2020 | 23 | (23) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (1,875) | $ 0 | $ (1,875) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (46,078) | $ (383,798) | $ (139,977) |
Adjustments to reconcile net loss to net cash from operating activities: | |||
Depreciation and intangible amortization | 78,826 | 104,418 | 112,383 |
Share-based compensation | 35,674 | 23,792 | 31,937 |
Warrant liability expense (gain) | 12,948 | (765) | (27,646) |
Deferred financing costs amortization | 4,061 | 4,061 | 4,587 |
Loss from disposition of business | 0 | 0 | 34,343 |
Deferred income taxes | 3,340 | (41,297) | (16,528) |
Impairment and restructuring related charges | 0 | 273,572 | 9,143 |
Loss on and impairment of minority equity investments | 5,867 | 7,481 | 10,406 |
Changes in assets held for sale from discontinued operations | 0 | 0 | (6,644) |
Other adjustments, net | 1,241 | 194 | 1,687 |
Change in operating assets and liabilities: | |||
Accounts receivable | 23,906 | 27,585 | 38,679 |
Inventories | 16,296 | 14,964 | (2,166) |
Prepaid expenses and other assets | 18,077 | 3,419 | (10,585) |
Accounts payable | (1,603) | (12,220) | (2,609) |
Accrued and other liabilities | 3,915 | (2,486) | 2,347 |
Income taxes | 14,927 | 1,780 | (3,064) |
Net cash from operating activities | 171,397 | 20,700 | 36,293 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (17,573) | (37,963) | (53,044) |
Proceeds from sale of assets | 419 | 5,541 | 1,274 |
Proceeds from sales and maturities of short-term investments | 183,874 | 173,020 | 100,375 |
Purchases of short-term investments | (284,918) | (174,114) | (114,461) |
Proceeds associated with divested business and discontinued operations | 11,003 | 0 | 4,737 |
Purchases of other investments | 0 | 0 | (5,000) |
Acquisition of businesses, net | 0 | (375) | (1,000) |
Net cash used in investing activities | (107,195) | (33,891) | (67,119) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from stock option exercises and employee stock purchases | 4,585 | 7,193 | 6,957 |
Repayments of long-term debt | (6,885) | (6,885) | (6,885) |
Payments for finance leases and other | (1,708) | (1,421) | (713) |
Repurchase of common stock for tax withholdings on equity awards | (6,708) | (4,137) | (6,828) |
Proceeds from corporate facility financing obligation | 0 | 0 | 4,000 |
Payments for financing costs | 0 | 0 | (505) |
Other adjustments, net | 0 | (578) | (477) |
Net cash used in financing activities | (10,716) | (5,828) | (4,451) |
Foreign currency effect on cash | 436 | (138) | (151) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 53,922 | (19,157) | (35,428) |
CASH AND CASH EQUIVALENTS — Beginning of year | 75,519 | 94,676 | 130,104 |
CASH AND CASH EQUIVALENTS — End of year | $ 129,441 | $ 75,519 | $ 94,676 |
Impairments
Impairments | 12 Months Ended |
Oct. 02, 2020 | |
Impairments [Abstract] | |
Impairments | IMPAIRMENTS During fiscal year 2019, we initiated a plan to strategically realign, streamline and improve our operations, including reducing our workforce and exiting certain product offerings and research and development facilities. See Note 14 - Restructurings , for additional information about the 2019 Plan. These activities led us to reassess our previous estimates for expected future revenue growth. We performed impairment analyses to determine whether our goodwill and long-lived assets, comprised of definite-lived intangible assets and property and equipment, were recoverable. During the fiscal quarter ended June 28, 2019, we performed a goodwill impairment test for our consolidated reporting unit. We calculated the fair value of our reporting unit using market capitalization and compared its fair value to its carrying amount, including goodwill. The fair value exceeded the carrying amount, therefore we determined that goodwill of the reporting unit was not impaired. Based on the estimated undiscounted cash flow assessment for long-lived assets, we determined that for an asset group, the cash flows were not sufficient to recover the carrying value of the long-lived assets over their remaining useful lives. Accordingly, we recorded impairment charges of $217.5 million and $33.2 million to our customer relationship and technology intangible assets, respectively, in the fiscal quarter ended June 28, 2019, based on the difference between the fair value and the carrying value of the long-lived assets. We will continue to monitor for events or changes in business circumstances that may indicate that the remaining carrying value of the asset group may not be recoverable. We used the income approach to determine the fair value of the definite-lived intangible assets and the cost approach to determine the fair value of our property and equipment. Additionally, in connection with the 2019 Plan, we determined that certain intangible assets were abandoned and would not have a future benefit. Accordingly, we recorded impairment charges of $2.4 million and $3.9 million to our customer relationship and technology intangible assets, respectively, during fiscal year 2019. During fiscal year 2019, we also abandoned equipment recorded as construction in process. Accordingly, we recorded impairment charges of $7.8 million to reflect the estimated salvage value of the equipment. Total impairment charges recorded to intangible assets and assets recorded as construction in process for fiscal year 2019 were $264.8 million. During fiscal year 2018, we recorded impairment charges of $6.6 million related to property and equipment and other assets. See Note 14 - Restructurings |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Oct. 02, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION As of October 2, 2020 and September 27, 2019, we had $0.6 million and $0.6 million, respectively, in unpaid amounts related to purchases of property and equipment included in accounts payable and accrued liabilities. These amounts have been excluded from the payments for purchases of property and equipment in the accompanying Consolidated Statements of Cash Flows until paid. During fiscal years 2019 and 2018, we capitalized $1.5 million and $18.4 million, respectively, of net construction costs relating to the facility in Lowell, Massachusetts, of which $0.3 million and $12.7 million, respectively, were accounted for as a non-cash transaction as the costs were paid by the developer. The following is supplemental cash flow information regarding non-cash activities (in thousands): Fiscal Years 2020 2019 2018 Cash paid for interest $ 24,672 $ 34,157 $ 29,698 Cash (refunded) paid for income taxes $ (17,465) $ (1,931) $ 3,559 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information | 12 Months Ended |
Oct. 02, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information Regarding Noncash Investing and Financing Activities | The following is supplemental cash flow information regarding non-cash activities (in thousands): Fiscal Years 2020 2019 2018 Cash paid for interest $ 24,672 $ 34,157 $ 29,698 Cash (refunded) paid for income taxes $ (17,465) $ (1,931) $ 3,559 |
Impairments_2
Impairments - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 03, 2020 | Sep. 27, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment charges | $ 264,786 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets | $ 217,500 | |
Technology-Based Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets | 33,200 | |
2019 Restructuring Plan | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets | 2,400 | |
2019 Restructuring Plan | Technology-Based Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets | 3,900 | |
Zhongxing Telecommunications Equipment Corporation | ||
Finite-Lived Intangible Assets [Line Items] | ||
Tangible asset impairment charges | $ 6,600 | |
Construction in process | ||
Finite-Lived Intangible Assets [Line Items] | ||
Tangible asset impairment charges | $ 7,800 |
Description of Business
Description of Business | 12 Months Ended |
Oct. 02, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESSMACOM Technology Solutions Holdings, Inc. (the “Company”) was incorporated in Delaware on March 25, 2009. We are a leading provider of high-performance analog semiconductor solutions that enable next-generation Internet applications, the cloud connected apps economy, and the modern, networked battlefield across the RF, microwave, millimeter wave and lightwave spectrum. We design, develop, manufacture and have manufactured differentiated, high-value products for customers who demand high performance, quality and reliability. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 02, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation, Basis of Presentation and Reclassification —We have one reportable segment, semiconductors and modules. The accompanying consolidated financial statements include our accounts and the accounts of our majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the Consolidated Balance Sheets, certain prior year balances have been reclassified to conform to the current year presentation. We have a 52- or 53-week fiscal year ending on the Friday closest to the last day of September. The fiscal year 2020 included 53 weeks and fiscal years 2019 and 2018 included 52 weeks. To offset the effect of holidays, for fiscal years in which there are 53 weeks, we typically include the extra week arising in our fiscal years in the first quarter. Our first quarter of fiscal year 2020, ended January 3, 2020, included 14 weeks. Use of Estimates —The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, we base estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. Divested Businesses and Discontinued Operations— In the first quarter of fiscal year 2018, we divested AppliedMicro's compute business (the “Compute business”). The operating results of the Compute business are reflected in discontinued operations. In the third quarter of fiscal year 2018, we divested our Japan-based long-range optical subassembly business (the “LR4 business”). The operating results of the LR4 business have been reflected in our continuing operations up through the May 10, 2018 sale date, with the $34.3 million loss on disposal recorded as other expense. See Note 22 - Divested Business and Discontinued Operations for additional information. Foreign Currency Translation and Remeasurement —Our consolidated financial statements are presented in U.S. dollars. While the majority of our foreign operations use the U.S. dollar as the functional currency, the financial statements of our foreign operations for which the functional currency is not the U.S. dollar are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates (for assets and liabilities) and at average exchange rates (for revenue and expenses). The unrealized translation gains and losses on the net investment in these foreign operations are accumulated as a component of other comprehensive (loss) income. The financial statements of our foreign operations where the functional currency is the U.S. dollar, but where the underlying transactions are transacted in a different currency, are remeasured at the exchange rate in effect at the balance sheet date with respect to monetary assets and liabilities. Nonmonetary assets and liabilities, such as inventories and property and equipment and related statements of operations accounts, such as cost of revenue and depreciation, are remeasured at historical exchange rates. Revenue and expenses, other than cost of revenue, amortization and depreciation, are translated at the average exchange rate for the period in which the transaction occurred. The net gains and losses on foreign currency remeasurement are reflected in selling, general and administrative expense in the accompanying Consolidated Statements of Operations. Net foreign exchange transaction gains and losses for all periods presented were not material. Cash and Cash Equivalents —Cash equivalents are primarily composed of short-term, highly-liquid instruments with an original maturity of 90 days or less and consist primarily of money market funds. Investments — Short-term investments: We classify our short-term investments as available-for-sale. Our investments classified as available-for-sale are recorded at fair value based upon third party pricing at period end. Unrealized gains and losses that are deemed temporary in nature are recorded in accumulated other comprehensive income and loss as a separate component of stockholders’ equity. A decline in the fair value of any debt security below cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. Premiums and discounts are amortized (accreted) over the life of the related security as an adjustment to its yield. Dividend and interest income are recognized when earned. Realized gains and losses are included in other income and expense in our Consolidated Statements of Operations and are derived using the specific identification method for determining the cost of investments sold. Other investments: We use the equity method to account for investments in companies if the investment provides us with the ability to exercise significant influence over operating and financial policies of the investee. Our proportionate share of the net income (loss) resulting from these investments are reported within the Other expense line in our Consolidated Statements of Operations. The carrying value of our equity method investment is reported in Other investments in our Consolidated Balance Sheets. Our equity method investment is reported at cost and adjusted each period for our share of the investee’s income or loss and dividends paid, if any, as well as any changes attributable to the equity of the investee that would impact our ownership. Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for as an equity security, at cost less impairment, and reported in Other investments in our Consolidated Balance Sheets. We have elected to measure our equity security, which does not have a readily determinable fair value and does not qualify for the practical expedient under Accounting Standards Codification (“ASC”) 820, Fair Value Measurement , at cost less any impairment. The investment is periodically evaluated for impairment. An impairment loss is recorded whenever there is a decline in value of an investment below its carrying amount that is determined to be other than temporary. Refer to Note 4 - Investments, for additional information. Inventories —Inventories are stated at the lower of cost or net realizable value. We use a combination of standard cost and moving weighted-average cost methodologies to determine the cost basis for our inventories, approximating a first-in, first-out basis. The standard cost of finished goods and work-in-process inventory is composed of material, labor and manufacturing overhead, which approximates actual cost. In addition to stating inventory at the lower of cost or net realizable value, we also evaluate inventory each reporting period for excess quantities and obsolescence, establishing reserves when necessary based upon historical experience, assessment of economic conditions and expected demand. Once recorded, these reserves are considered permanent adjustments to the carrying value of inventory. Property and Equipment —Property and equipment is stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements that significantly extend the useful life of the assets are capitalized as additions to property and equipment. Property and equipment are depreciated or amortized using the straight-line method over the following estimated useful lives: Asset Classification Estimated Useful Life Buildings and improvements 20 - 40 Computer equipment and software 2 - 5 Furniture and fixtures 7 - 10 Finance lease assets and leasehold improvements Shorter of useful life or term of lease Machinery and equipment 2 - 7 Goodwill and Indefinite-Lived Intangible Assets —We have goodwill and certain intangible assets with indefinite lives which are not subject to amortization. These are reviewed for impairment annually as of the end of our fiscal August month end and more frequently if events or changes in circumstances indicate that the assets may be impaired. For our assessment of goodwill impairment, we compare the carrying value of the reporting unit to the fair value of the Company. For our assessment of indefinite-lived assets we compare the carrying value of the asset to the estimated fair value of the asset. If impairment exists, a loss is recorded to write down the value of the assets to their implied fair values. We performed our annual impairment test of our goodwill and indefinite-lived intangible assets and the results of this test indicated that our goodwill and indefinite-lived intangible assets were not impaired as of August 28, 2020. There were no indicators of impairment noted during the fiscal year ended October 2, 2020. Long-Lived Asset Valuation and Impairment Assessment —Long-lived assets include property and equipment and definite-lived intangible assets subject to amortization. We evaluate long-lived assets for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to, significant decreases in the market price of the asset or asset group, significant adverse changes in the business climate or legal factors, the accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset, current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset and a current expectation that the asset will more likely than not, be sold or disposed of significantly before the end of its previously estimated useful life. In evaluating a long-lived asset for recoverability, we estimate the undiscounted cash flows expected to result from our use and eventual disposition of the asset. If the sum of the expected undiscounted cash flows is less than the carrying amount of the asset group, an impairment loss, equal to the excess of the carrying amount over the fair value of the asset, is recognized. In fiscal years 2019 and 2018, we recorded impairment charges, see Note 16 - Impairments , for further detail. Other Intangible Assets —Our other intangible assets, including acquired technology and customer relationships, are definite-lived assets and are subject to amortization. We amortize definite-lived assets over their estimated useful lives, which range from five Revenue Recognition —Substantially all of our revenue is derived from sales of high-performance RF, microwave, millimeterwave and lightwave semiconductor solutions into three primary markets: Telecom, I&D and Data Center. In fiscal year 2018, we recognized revenue under ASC 605, Revenue Recognition, when: (i) persuasive evidence of an arrangement existed; (ii) delivery or services had been rendered; (iii) the price was fixed or determinable; and (iv) collectability was reasonably assured. We recognized revenue with the transfer of title and risk of loss and provided for reserves for returns and other allowances. In fiscal years 2019 and 2020, we recognized revenue within the scope of ASC 606, Revenue from Contracts with Customers. Revenue is recognized when a customer obtains control of products or services in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of ASC 606, we perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) we satisfy performance obligations. Sales, value add and other taxes collected on behalf of third parties are excluded from revenue. Our revenue arrangements do not contain significant financing components. Contracts with our customers principally contain only one distinct performance obligation, which is the sale of products. However, due to multiple products potentially being sold on a single order, we are required to allocate consideration based on the estimated relative standalone selling prices of the promised products. Periodically, we enter into non-product development and license contracts with certain customers. We generally recognize revenue from these contracts over-time as services are provided based on the terms of the contract. Non-product development and license revenue is not significant to our Revenue or Consolidated Statements of Operations for the periods presented. Revenue is deferred for amounts billed or received prior to delivery of the services. Certain contracts may contain multiple performance obligations for which we allocate revenue to each performance obligation based on the relative stand-alone selling price. Our product revenue is recognized when the customer obtains control of the product or services, which generally occurs at a point in time, and is based on the contractual shipping terms of a contract. Non-product revenue is generally recognized over time. For each contract, the promise to transfer the control of the products or services, each of which is individually distinct, is considered to be the identified performance obligation. We provide an assurance type warranty which is not sold separately and does not represent a separate performance obligation. Therefore, we account for such warranties under ASC 460, Guarantees , and the estimated costs of warranty claims are generally accrued as cost of revenue in the period the related revenue is recorded. We have agreements with certain distribution customers which may include certain rights of return and pricing programs, including returns for aged inventory, stock rotation and price protection which affect the transaction price. Sales to these customers and programs offered are in accordance with terms set forth in written agreements, which require us to assess the potential revenue effects of this variable consideration utilizing the expected value method. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. As such, revenue on sales to customers that include rights of return and pricing programs are recorded net of estimated variable consideration, utilizing the expected value method based on historical sales data. We believe that the judgments and estimates we utilize are reasonable based upon current facts and circumstances, however utilizing different judgments and estimates could result in different amounts. Practical Expedients and Elections — ASC 606 requires that we disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of the reporting periods presented. The guidance provides certain practical expedients that limit this requirement and, therefore, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which we have the right to invoice for services performed. We have elected not to disclose the aggregate amount of transaction prices associated with unsatisfied or partially unsatisfied performance obligations for contracts where these criteria are met. Our policy is to capitalize any incremental costs incurred to obtain a customer contract, only to the extent that the benefit associated with the costs is expected to be longer than one year. Capitalizable contract costs were not significant at the date of adoption or as of September 27, 2019 and October 2, 2020. We account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. When shipping and handling costs are incurred after a customer obtains control of the products, we have elected to account for these as costs to fulfill the promise and not as a separate performance obligation. Shipping and handling costs associated with the distribution of products to customers are recorded in costs of revenue generally when the related product is shipped to the customer. Research and Development Costs —Costs incurred in the research and development of products are expensed as incurred. Income Taxes —Deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities, using rates anticipated to be in effect when such temporary differences reverse. A valuation allowance against net deferred tax assets is required if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We provide reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. Reserves are based on a determination of whether and how much of a tax benefit is taken by us in our tax filings or positions that are more likely than not to be realized following an examination by taxing authorities. We recognize the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a “more-likely-than-not” threshold, the amount recognized in the financial statements is the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. Earnings Per Share —Basic net (loss) income per share is computed by dividing net (loss) income by the weighted-average number of common shares outstanding during the period, excluding the dilutive effect of common stock equivalents. Diluted net (loss) income per share reflects the dilutive effect of common stock equivalents, such as stock options, warrants and restricted stock units, using the treasury stock method. Fair Value Measurements —Financial assets and liabilities are measured at fair value. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability at the measurement date under current market conditions in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, we group financial assets and liabilities in a three-tier fair value hierarchy, according to the inputs used in measuring fair value as follows: • Level 1—observable inputs such as quoted prices in active markets for identical assets and liabilities; • Level 2—inputs other than quoted prices in active markets that are observable either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical assets and liabilities in markets that are not active and model-based valuation techniques for which significant assumptions are observable in active markets; and, • Level 3—unobservable inputs for which there is little or no market data, requiring us to develop our own assumptions for model-based valuation techniques. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. We recognize transfers between levels of the fair value hierarchy at the end of the reporting period. Money market funds are actively traded and consist of highly liquid investments with original maturities of 90 days or less. They are measured at their net asset value and classified as Level 1. Corporate and agency bonds and commercial paper are categorized as Level 2 assets except where sufficient quoted prices exist in active markets, in which case such securities are categorized as Level 1 assets. These securities are valued using third-party pricing services. These services may use, for example, model-based pricing methods that utilize observable market data as inputs. We generally use quoted prices for recent trading activity of assets with similar characteristics to the debt security or bond being valued. The securities and bonds priced using such methods are generally classified as Level 2. Broker dealer bids or quotes on securities with similar characteristics may also be used. Our common stock warrants are classified as Level 3 due to unobservable inputs. We use the Black-Scholes option-pricing model to estimate the fair value of our common stock warrants, inclusive of assumptions for the risk-free interest rate, dividends, expected term and estimated volatility. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these assets and liabilities. Share-Based Compensation —We account for all share-based compensation arrangements using the fair value method. We recognize compensation expense on a straight-line basis over the expected or requisite service period of the award, which is generally the vesting period of each separately vesting tranche, and providing that the minimum amount of compensation recorded is equal to the vested portion of the award. We record the expense in the Consolidated Statements of Operations in the same manner in which the award recipients’ salary costs are classified. For restricted stock awards we use the closing stock price on the date of grant to estimate the fair value of the awards. We use the Black-Scholes option-pricing model to estimate the fair value of stock options with service and performance conditions, inclusive of assumptions for risk-free interest rates, dividends, expected terms and estimated volatility. We use the Monte Carlo Simulation analysis to estimate the fair value of stock options and awards with market conditions, inclusive of assumptions for risk free interest rates, expected term, expected volatility and the target price. We derive the risk-free interest rate assumption from the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to the expected term of the award being valued. We base the assumed dividend yield on our expectation of not paying dividends in the foreseeable future. We calculate the weighted-average expected term of the options using historical data. In addition, we calculate our estimated volatility using our historical stock price volatility data. We account for forfeitures when they occur. Share-based awards that are settled in cash are recorded as liabilities. The measurement of the liability and compensation cost for these awards is based on the fair value of the award as of each period end date, and is recorded in operating income over the award’s vesting period. Changes in our payment obligation prior to the settlement date of a stock-based award are recorded as compensation expense in operating income in the period of the change. The final payment amount for such awards is established on the date of vesting. Guarantees and Indemnification Obligations —We enter into agreements in the ordinary course of business with, among others, customers, distributors and OEMs. Most of these agreements require us to indemnify the other party against third-party claims alleging that a Company product infringes a patent and/or copyright. Certain agreements in which we grant limited licenses to Company intellectual property require us to indemnify the other party against third-party claims alleging that the use of the licensed intellectual property infringes a third-party's intellectual property. Certain of these agreements require us to indemnify the other party against certain claims relating to property damage, personal injury or the acts or omissions, its employees, agents or representatives. In addition, from time to time, we have made certain guarantees in the form of warranties regarding the performance of Company products to customers. We have agreements with certain vendors, creditors, lessors and service providers pursuant to which we have agreed to indemnify the other party for specified matters, such as acts and omissions, its employees, agents or representatives. We have procurement or license agreements with respect to technology used in our products and agreements in which we obtain rights to a product from an OEM. Under some of these agreements, we have agreed to indemnify the supplier for certain claims that may be brought against such party with respect to our acts or omissions relating to the supplied products or technologies. Our certificate of incorporation and agreements with certain of our directors and officers and certain of our subsidiaries’ directors and officers provide them indemnification rights, to the extent legally permissible, against liabilities incurred by them in connection with legal actions in which they may become involved by reason of their service as a director or officer. As a matter of practice, we have maintained director and officer liability insurance coverage, including coverage for directors and officers of acquired companies. We have not experienced any losses related to these indemnification obligations in any period presented and no claims with respect thereto were outstanding as of October 2, 2020 and September 27, 2019. We do not expect significant claims related to these indemnification obligations and, consequently, have concluded that the fair value of these obligations is negligible. No liabilities related to indemnification liabilities have been established. Recent Accounting Pronouncements Pronouncements Adopted in Fiscal Year 2020 On the first day of our fiscal year 2020, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASC 842”), which requires lease arrangements be presented on the lessee’s balance sheet by recording a right-of-use (“ROU”) asset and a lease liability equal to the present value of related future minimum lease payments. We adopted the new lease guidance using the modified retrospective approach and the transition method available in accordance with ASU 2018-11, Leases (Topic 842) : Targeted Improvements, which provides the option to use the effective date as the date of initial application of the guidance. As a result, the comparative information for prior periods has not been adjusted and continues to be reported in accordance with the accounting standards in effect for those periods under the previously applicable guidance. We elected the “practical expedients package of three” permitted under the transition guidance within ASC 842, which permitted us to carry forward our historical assessments of whether contracts contain leases, lease classification, and initial direct costs, for leases in existence prior to September 28, 2019. We evaluated our identified leases and applied the new lease guidance as discussed in Note 10 - Leases . At the effective date, the adoption of ASC 842 resulted in an increase to our total assets of approximately $37.1 million, an increase to our total liabilities of approximately $39.0 million, primarily related to capitalization of operating leases, and a decrease to our retained earnings of approximately $1.9 million primarily due to derecognition of financing obligations and associated assets established under ASC 840, Leases . We have operating leases for certain facilities as well as manufacturing and office equipment. Based on the present value of lease payments for the remaining lease term of our existing leases, we recognized $37.7 million and $43.6 million of both operating ROU assets and operating lease liabilities, respectively, on our consolidated balance sheet upon adoption of ASC 842 on September 28, 2019. The difference between the ROU asset and liability represents deferred rent and lease incentives of approximately $5.9 million, recorded as a reduction to our gross ROU assets. We have finance leases for our corporate headquarters, including our fabrication facility, and to a lesser extent, various manufacturing equipment. Upon the adoption of ASC 842 on September 28, 2019, we derecognized the previous financed assets and financing obligation for our built-to-suit corporate headquarters and recorded a finance lease asset and liability. We also recorded finance lease assets and liabilities for various manufacturing equipment. On September 28, 2019 we recognized a finance lease ROU asset and finance lease liability of $35.7 million and $31.8 million, respectively, on our consolidated balance sheet. The difference between the ROU asset and liability represents net prepaid rent for our corporate headquarters, which is recorded as part of the finance lease ROU asset and is being amortized on a straight-line basis over the remaining lease term. The adoption of the new lease guidance did not have a material impact to the Consolidated Statement of Operations or Cash Flows, or earnings per share for the fiscal year ended October 2, 2020. Pronouncements for Adoption in Subsequent Periods In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU introduces a new accounting model known as Credit Expected Credit Losses (“CECL”), which requires earlier recognition of credit losses. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for receivables at the time the financial asset is originated or acquired, replacing the current incurred loss methodology that delays recognition of credit losses until a probable loss has been incurred. There are other provisions within the standard affecting how impairments of other financial assets may be recorded and presented, as well as expanded disclosures. We adopted this standard on the first day of our fiscal year 2021, October 3, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions to applying the guidance on contract modifications, hedge accounting, and other transactions, to simplify the accounting for transitioning from the London Interbank Offered Rate, and other interbank offered rates expected to be discontinued, to alternative reference rates. The guidance in this Update was effective upon its issuance; if elected, it is to be applied prospectively through December 31, 2022. We are currently evaluating the effect the potential adoption of this ASU will have on our consolidated financial statements, including but not limited to our credit agreement. |
Revenue
Revenue | 12 Months Ended |
Oct. 02, 2020 | |
Revenue [Abstract] | |
Revenue | REVENUE Disaggregation of Revenue We disaggregate revenue from contracts with customers by markets and geography, as we believe it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following tables present our revenue disaggregated by markets and geography (in thousands): Fiscal Years 2020 2019 2018 Telecom $ 209,477 $ 180,938 $ 222,940 Industrial & Defense 194,506 204,638 185,360 Data Center 126,054 114,132 162,098 Total $ 530,037 $ 499,708 $ 570,398 Fiscal Years Revenue by Geographic Region 2020 2019 2018 United States $ 217,474 $ 239,510 $ 272,951 China 192,989 132,329 159,763 Asia Pacific, excluding China (1) 84,997 80,136 79,581 Other Countries (2) 34,577 47,733 58,103 Total $ 530,037 $ 499,708 $ 570,398 (1) Asia Pacific represents Taiwan, Japan, Singapore, India, Thailand, South Korea, Australia, Malaysia, New Zealand and the Philippines. (2) No country or region represented greater than 10% of our total revenue as of the dates presented, other than the United States, China and the Asia Pacific region as presented above. Contract Balances We record contract assets or contract liabilities depending on the timing of revenue recognition, billings and cash collections on a contract-by-contract basis. Our contract liabilities primarily relate to deferred revenue, including advanced consideration received from customers for contracts prior to the transfer of control to the customer, and therefore revenue is subsequently recognized upon delivery of products and services. The following table presents the changes in contract liabilities during fiscal year 2020 (in thousands): October 2, 2020 September 27, 2019 $ Change % Change Contract liabilities $ 9,861 $ 10,653 $ (792) (7) % |
Investments
Investments | 12 Months Ended |
Oct. 02, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS All investments are short-term in nature and are invested in corporate bonds and commercial paper, and are classified as available-for-sale. The amortized cost, gross unrealized holding gains or losses and fair value of our available-for-sale investments by major investments type are summarized in the tables below (in thousands): October 2, 2020 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Corporate bonds $ 68,605 $ 348 $ (333) $ 68,620 Commercial paper 134,913 192 (14) 135,091 Total investments $ 203,518 $ 540 $ (347) $ 203,711 September 27, 2019 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Corporate bonds $ 29,578 $ 112 $ (93) $ 29,597 Commercial paper 71,646 1 (18) 71,629 Total investments $ 101,224 $ 113 $ (111) $ 101,226 The contractual maturities of available-for-sale investments were as follows (in thousands): October 2, 2020 Less than 1 year $ 138,612 Over 1 year 65,099 Total investments $ 203,711 We have determined that the gross unrealized losses on available for sale securities at October 2, 2020 and September 27, 2019 are temporary in nature. We review our investments to identify and evaluate investments that have indications of possible impairment. The techniques used to measure the fair value of our investments are described in Note 2 - S ummary of Significant Accounting Policies . Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. Substantially all of our fixed income securities are rated investment grade. We received proceeds from sales of available-for-sale securities of $183.9 million, $173.0 million and $100.4 million during the fiscal years 2020, 2019 and 2018, respectively. Gross realized gains and losses from such sales were immaterial during the fiscal years ended October 2, 2020, September 27, 2019 and September 28, 2018 and were recorded within other expense. Other Investments — As of October 2, 2020 and September 27, 2019, we held two no n-marketable equity investments classified as other long-term investments, which includes an investment in a Series B preferred stock ownership of a privately held manufacturing corporation with preferred liquidation rights over other equity shares. As the equity securities do not have a readily determinable fair value and do not qualify for the practical expedient under ASC 820, Fair Value Measurement, we have elected to account for this investment at cost less any impairment. During the fiscal quarter ended October 2, 2020, we identified impairment indicators for this investment and recorded an impairment charge of $2.5 million to Other expense. The carrying value of this investment was $2.5 million and $5.0 million as of October 2, 2020 and September 27, 2019, respectively. Also included in long-term investments, is a minority investment of less than 20% of the outstanding equity of Compute. This investment was acquired in conjunction with the divestiture of the Compute business during our fiscal year 2018, had an initial value |
Fair Value
Fair Value | 12 Months Ended |
Oct. 02, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain assets and liabilities at fair value on a recurring basis such as our financial instruments. There have been no transfers between Level 1, 2 or 3 assets or liabilities during the fiscal year ended October 2, 2020. Assets and liabilities measured at fair value on a recurring basis consist of the following (in thousands): October 2, 2020 Fair Value Active Markets for Identical Assets Observable Inputs Unobservable Inputs Assets Money market funds $ 20,139 $ 20,139 $ — $ — Commercial paper 135,091 — 135,091 — Corporate bonds 68,620 — 68,620 — Total assets measured at fair value $ 223,850 $ 20,139 $ 203,711 $ — Liabilities Warrant liability 25,312 — — 25,312 Total liabilities measured at fair value $ 25,312 $ — $ — $ 25,312 September 27, 2019 Fair Value Active Markets for Identical Assets Observable Inputs Unobservable Inputs Assets Money market funds $ 261 $ 261 $ — $ — Commercial paper 71,629 — 71,629 — Corporate bonds 29,597 — 29,597 — Total assets measured at fair value $ 101,487 $ 261 $ 101,226 $ — Liabilities Warrant liability 12,364 — — 12,364 Total liabilities measured at fair value $ 12,364 $ — $ — $ 12,364 The quantitative information utilized in the fair value calculation of our Level 3 liabilities are as follows: Liabilities Valuation Technique Unobservable Input October 2, 2020 September 27, 2019 Warrant liability Black-Scholes model Volatility 61.8% 61.4% Discount rate 0.09% 1.71% Expected life 0.2 years 1.2 years Exercise price $14.05 $14.05 Stock price $33.80 $21.68 Dividend rate —% —% The changes in assets and liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands): Fiscal Year 2020 September 27, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases Sales and October 2, Warrant liability $ 12,364 $ 12,948 $ — $ — $ 25,312 Fiscal Year 2019 September 28, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases Sales and September 27, Contingent consideration $ 585 $ 65 $ — $ (650) $ — Warrant liability $ 13,129 $ (765) $ — $ — $ 12,364 Fiscal Year 2018 September 29, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases Sales and September 28, Contingent consideration $ 1,679 $ (394) $ — $ (700) $ 585 Warrant liability $ 40,775 $ (27,646) $ — $ — $ 13,129 |
Accounts Receivables Allowances
Accounts Receivables Allowances | 12 Months Ended |
Oct. 02, 2020 | |
Receivables [Abstract] | |
Accounts Receivables Allowances | ACCOUNTS RECEIVABLES ALLOWANCES Summarized below is the activity in our accounts receivable allowances including compensation credits and doubtful accounts as follows (in thousands): Fiscal Year 2020 2019 2018 Balance - beginning of year $ 5,047 $ 6,795 $ 9,410 Provision, net 10,774 11,989 15,465 Charge-offs (12,928) (13,737) (18,080) Balance - end of year $ 2,893 $ 5,047 $ 6,795 |
Inventories
Inventories | 12 Months Ended |
Oct. 02, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consist of the following (in thousands): October 2, 2020 September 27, 2019 Raw materials $ 46,954 $ 59,184 Work-in-process 9,324 13,799 Finished goods 35,306 34,897 Total $ 91,584 $ 107,880 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Oct. 02, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): October 2, September 27, Construction in process $ 16,174 $ 24,848 Machinery and equipment 191,953 175,696 Leasehold improvements 19,854 12,962 Furniture and fixtures 2,659 3,716 Computer equipment and software 18,487 18,116 Capital lease and financed assets — 46,496 Finance lease assets 35,589 — Total property and equipment 284,716 281,834 Less accumulated depreciation and amortization (165,850) (149,187) Property and equipment — net $ 118,866 $ 132,647 Depreciation and amortization expense related to property and equipment for fiscal years 2020, 2019 and 2018 was $28.5 million, $29.7 million and $30.7 million, respectively. Accumulated amortization on finance lease assets as of October 2, 2020 was $2.5 million. Accumulated depreciation on capital lease assets as of September 27, 2019 $5.3 million. See Note 16 - Impairments and Note 14 - Restructurings for information related to property and equipment impaired during fiscal year 2019. |
Debt
Debt | 12 Months Ended |
Oct. 02, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT As of October 2, 2020, we are party to a credit agreement dated as of May 8, 2014 with a syndicate of lenders and Goldman Sachs Bank USA (“Goldman Sachs”), as administrative agent (as amended on February 13, 2015, August 31, 2016, March 10, 2017, May 19, 2017, May 2, 2018 and May 9, 2018, the “Credit Agreement”). As of October 2, 2020, the Credit Agreement consisted of term loans with an original principal amount of $700.0 million ("Term Loans") and a revolving credit facility with an aggregate, undrawn borrowing capacity of $160.0 million (“Revolving Facility”). The Revolving Facility will mature in November 2021 and the Term Loans will mature in May 2024 and bear interest at: (i) for LIBOR loans for any interest period, a rate per annum equal to the LIBOR rate as determined by the administrative agent, plus an applicable margin of 2.25%; and (ii) for base rate loans, a rate per annum equal to the greater of (a) the prime rate quoted in the print edition of the Wall Street Journal, Money Rates Section, (b) the federal funds rate plus one-half of 1.00% and (c) the LIBOR rate applicable to a one-month interest period plus 1.00% (but, in each case, not less than 1.00%), plus an applicable margin of 1.25%. All principal amounts outstanding and interest rate information as of October 2, 2020, for the Credit Agreement were as follows (in thousands, except rate data): Principal Outstanding LIBOR Rate Margin Effective Interest Rate Term loans $666,087 0.15% 2.25% 2.40% As of October 2, 2020, approximately $5.1 million of deferred financing costs remain unamortized, of which $4.8 million is related to the Term Loans and is recorded as a direct reduction of the recognized debt liabilities in our accompanying Consolidated Balance Sheet, and $0.3 million is related to the Revolving Facility and is recorded in other long-term assets in our accompanying Consolidated Balance Sheet. The Term Loans and Revolving Facility are secured by a first priority lien on substantially all of our assets and provide that we must comply with certain financial and non-financial covenants. The Term Loans are payable in quarterly principal installments of approximately $1.7 million on the last business day of each calendar quarter, with the remainder due on the maturity date. In the event that we divest a business, the net cash proceeds of the divestment are generally required, subject to certain exceptions, to be applied to repayment of outstanding Term Loans except to the extent we reinvest such proceeds in assets useful for our business within 18 months of receiving the proceeds. If we enter into a binding agreement to reinvest such proceeds within 18 months of receiving them, we have until the later of 18 months following our receipt of the proceeds and six months following the date of such agreement to complete the reinvestment. As of October 2, 2020, we had $160.0 million of borrowing capacity under our Revolving Facility, of which we may borrow up to $50.0 million without being subject to certain financial covenants. As of October 2, 2020, the following remained outstanding on the Term Loans: October 2, 2020 September 27, Principal balance $ 666,087 $ 672,971 Unamortized discount (2,205) (3,414) Unamortized deferred financing costs (4,825) (7,400) Total term loans 659,057 662,157 Current portion 6,885 6,885 Long-term, less current portion $ 652,172 $ 655,272 As of October 2, 2020, the minimum principal payments under the Term Loans in future fiscal years were as follows (in thousands): Fiscal year ending: Amount 2021 $ 6,885 2022 6,885 2023 6,885 2024 645,432 Total $ 666,087 The fair value of the Term Loans was estimated to be approximately $649.4 million as of October 2, 2020 and was determined using Level 2 inputs, including a quoted price from a bank. |
Leases Leases
Leases Leases | 12 Months Ended |
Oct. 02, 2020 | |
Leases [Abstract] | |
Leases | LEASES We have operating leases for certain facilities, as well as manufacturing and office equipment. We have financing leases for our corporate headquarters, including our fabrication facility, and to a lesser extent, various manufacturing equipment. These leases expire at various dates through 2038, and certain of these leases have renewal options with the longest ranging up to two ten-year periods. We determine that a contract contains a lease at lease inception if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In evaluating whether the right to control an identified asset exists, we assess whether we have the right to direct the use of the identified asset and obtain substantially all of the economic benefit from the use of the identified asset. Leases with a term greater than one year are recognized on the balance sheet as ROU assets and lease liabilities. For leases with a term of one year or less, categorized as short-term leases, we elected not to recognize the lease liability for these arrangements and the lease payments are recognized in the consolidated statement of operations on a straight-line basis over the lease term. ROU assets and lease liabilities are recognized at the present value of future minimum lease payments over the lease term on the commencement date. ROU assets are initially measured as the amount of the initial lease liability, adjusted for initial direct costs, lease payments made at or before the commencement date, and reduced by lease incentives received. We include options to renew or terminate when determining the lease term when it is reasonably certain that the option will be exercised. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Our leases may contain lease and non-lease components. We elected to account for lease and non-lease components in a contract as part of a single lease component. Fixed payments are considered part of the single lease component and included in the ROU assets and lease liabilities. Additionally, lease contracts typically include variable payments and other costs that do not transfer a separate good or service, such as reimbursement for real estate taxes and insurance, which are expensed as incurred. Our leases generally do not provide an implicit interest rate. As a result, we utilize our incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. Included in our Consolidated Balance Sheets were the following amounts related to operating and finance lease assets and liabilities (in thousands): October 2, 2020 September 27, 2019 Consolidated Balance Sheet Classification Assets: Operating lease ROU assets $ 33,307 $ — Other long-term assets Finance lease assets 33,127 — Property and equipment, net Capital lease and financed assets — 40,442 Property and equipment, net Total lease assets $ 66,434 $ 40,442 Liabilities: Current: Operating lease liabilities $ 7,601 $ — Accrued liabilities Finance lease liabilities 1,368 — Current portion of finance lease obligations and other Capital lease and financing obligations — 1,084 Current portion of finance lease obligations and other Long-term: Operating lease liabilities 31,837 — Other long-term liabilities Finance lease liabilities 28,994 — Finance lease obligations and other, less current portion Capital lease and financing obligations — 29,506 Finance lease obligations and other, less current portion Total lease liabilities $ 69,800 $ 30,590 The weighted-average remaining lease terms and weighted-average discount rates for operating and finance leases as of October 2, 2020 were as follows: October 2, 2020 Weighted-average remaining lease term (in years): Operating leases 6.4 Finance leases 17.0 Weighted-average discount rate: Operating leases 6.2 % Finance leases 6.7 % The components of lease expense were as follows (in thousands): Fiscal Year October 2, 2020 Finance lease cost: Amortization of lease assets $ 3,022 Interest on lease liabilities 2,155 Total finance lease cost $ 5,177 Operating lease cost $ 9,815 Variable lease cost $ 2,645 Short-term lease cost $ 368 Sublease income $ (592) Rent expense incurred under non-cancelable operating leases was $9.7 million and $9.5 million in fiscal years 2019 and 2018, respectively. Cash paid for amounts included in the measurement of lease liabilities were as follows (in thousands): Fiscal Year Ended October 2, 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 9,562 Operating cash flows from finance leases $ 2,155 Financing cash flows from finance leases $ 1,708 Non-cash activities: Operating lease ROU assets obtained in exchange for new lease liabilities $ 3,788 Financing lease assets obtained in exchange for new lease liabilities $ 586 As of October 2, 2020, maturities of lease payments by fiscal year were as follows (in thousands): Fiscal year ending: Operating Leases Finance Leases 2021 $ 9,771 $ 3,347 2022 8,359 2,836 2023 6,661 2,820 2024 6,228 2,856 2025 4,315 2,783 Thereafter 12,784 37,150 Total lease payments $ 48,118 $ 51,792 Less: interest (8,680) (21,430) Present value of lease liabilities $ 39,438 $ 30,362 As of September 27, 2019, future minimum lease payments for our operating and capital leases were as follows as determined in accordance with the previous guidance under ASC 840, Leases (in thousands): Fiscal year ending: Operating Leases Capital Leases 2020 $ 9,987 $ 3,299 2021 9,233 3,343 2022 7,447 2,884 2023 6,061 2,816 2024 5,564 2,853 Thereafter 16,437 39,927 Total future minimum lease payments $ 54,729 55,122 Less amount representing interest (26,241) Present value of net minimum capital lease payments $ 28,881 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Oct. 02, 2020 | |
Postemployment Benefits [Abstract] | |
Compensation and Employee Benefit Plans | EMPLOYEE BENEFIT PLANSWe established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code of 1986, as amended on October 1, 2009 (“401(k) Plan”). The 401(k) Plan follows a calendar year, covers substantially all U.S. employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pretax basis, subject to legal limitations. Our contributions to the 401(k) Plan may be made at the discretion of the board of directors. During the fiscal year ended October 2, 2020, we contributed $2.3 million to our 401(k) Plan for calendar year 2019. During the fiscal year ended September 27, 2019, we contributed $2.6 million to our 401(k) Plan for calendar year 2018. Our employees located in foreign jurisdictions meeting minimum age and service requirements participate in defined contribution plans whereby participants may defer a portion of their annual compensation on a pretax basis, subject to legal limitations. Company contributions to these plans are discretionary and vary per region. We expensed contributions of $1.0 million, $1.1 million and $1.2 million for fiscal years 2020, 2019 and 2018, respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Oct. 02, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consist of the following (in thousands): October 2, September 27, Compensation and benefits $ 32,254 $ 20,455 Distribution costs 8,889 7,797 Deferred revenue 6,346 2,137 Product warranty 1,858 3,273 Restructuring costs 261 2,527 Professional fees 1,300 1,554 Rent and utilities 589 701 Income taxes payable 734 1,233 Current portion of operating leases 7,601 — Other 3,822 2,368 Total accrued liabilities $ 63,654 $ 42,045 |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Oct. 02, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | COMMITMENTS AND CONTINGENCIES Asset Retirement Obligations —We are obligated under certain facility leases to restore those facilities to the condition in which we or our predecessors first occupied the facilities. We are required to remove leasehold improvements and equipment installed in these facilities prior to termination of the leases. As of the end of fiscal years 2020 and 2019, the estimated costs for the removal of these assets are recorded as asset retirement obligations in other long-term liabilities were $1.9 million and $1.8 million, respectively. Purchase Commitments —As of October 2, 2020, we had outstanding non-cancelable purchase commitments of $33.8 million primarily for purchases of services and inventory supply arrangements. In addition, we have $27.0 million in fixed payments associated with a power purchase agreement that is expected to commence in fiscal 2022 and has a 15-year term. |
Restructurings
Restructurings | 12 Months Ended |
Oct. 02, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructurings | RESTRUCTURINGS We have periodically implemented restructuring actions in connection with broader plans to reduce staffing, our internal manufacturing footprint and overall operating costs. The restructuring expenses are primarily comprised of direct and incremental costs related to headcount reductions including severance and outplacement fees for the terminated employees, as well as facility closure costs. The following is a summary of the restructuring charges incurred for the periods presented (in thousands): Fiscal Years 2020 2019 2018 Employee-related expenses $ 378 $ 8,084 $ 2,789 Facility-related expenses 761 11,459 3,476 Total restructuring expenses $ 1,139 $ 19,543 $ 6,265 The following is a summary of the costs incurred and remaining balances included in accrued expenses related to restructuring actions taken (in thousands): Employee-Related Expense (1) Facility-Related Expense (2) Total Balance - September 29, 2017 $ 627 $ — $ 627 Charges 2,789 3,476 6,265 Charges paid/settled (3,327) (3,476) (6,803) Balance - September 28, 2018 $ 89 $ — $ 89 Charges 8,084 11,459 19,543 Charges paid/settled (6,624) (10,481) (17,105) Balance - September 27, 2019 $ 1,549 $ 978 $ 2,527 Charges and adjustments 378 761 1,139 Charges paid/settled (1,692) (1,713) (3,405) Balance - October 2, 2020 $ 235 $ 26 $ 261 (1) Primarily includes severance charges associated with the reduction of our workforce in certain facilities. (2) Primarily includes activities associated with the closure of certain facilities, including any associated asset impairments and contract termination costs. 2019 Plan During the fiscal quarter ended June 28, 2019, we committed to a plan to strategically realign, streamline and improve certain of our business and operations, including reducing our workforce by approximately 250 employees and exiting six development facilities in France, Japan, the Netherlands, Florida, Massachusetts and Rhode Island, reducing certain development activities for one of our product lines and no longer investing in the design and development of optical modules and subsystems for Data Center applications (the “2019 Plan”). During the fiscal year ended October 2, 2020, we incurred restructuring expenses of $1.2 million under the 2019 Plan, including $0.8 million of facility-related costs and $0.4 million of employee-related costs. We incurred restructuring charges of $11.6 million in the fiscal year ended September 27, 2019, including $6.3 million of employee-related costs, $4.0 million of impairment expense for fixed assets and $1.3 million of other facility-related costs. This action was completed during fiscal 2020 and we do not expect to incur further costs. The remaining charges will be paid during fiscal year 2021. The following is a summary of the costs incurred and remaining balances included in accrued expenses related to the 2019 Plan actions taken (in thousands): Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 6,265 5,300 11,565 Charges paid/settled (4,729) (4,843) (9,572) Balance - September 27, 2019 $ 1,536 $ 457 $ 1,993 Charges and adjustments 378 819 1,197 Charges paid/settled (1,679) (1,250) (2,929) Balance - October 2, 2020 $ 235 $ 26 $ 261 Design Facilities Plan During the fiscal quarter ended March 29, 2019, we committed to a plan to exit certain design facilities and activities (the “Design Facilities Plan”). We incurred restructuring charges of $2.5 million in the fiscal year ended September 27, 2019, including $0.3 million of employee-related costs and $2.2 million of facility-related costs. This action was complete in fiscal 2019 and no further costs will be incurred. The remaining charges were paid during fiscal year 2020. The following is a summary of the costs incurred and remaining balances included in accrued expenses related to the Design Facilities Plan actions taken (in thousands): Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 338 2,190 2,528 Charges paid/settled (338) (1,739) (2,077) Balance - September 27, 2019 $ — $ 451 $ 451 Charges and adjustments — (18) (18) Charges paid/settled — (433) (433) Balance - October 2, 2020 $ — $ — $ — Ithaca Plan During the fiscal quarter ended December 28, 2018, we commenced a plan to exit certain production and product lines, primarily related to certain production facilities located in Ithaca, New York (the “Ithaca Plan”). For these facilities, we incurred $5.5 million of restructuring charges in the fiscal year ended September 27, 2019, including $1.5 million of employee-related costs and $4.0 million of facility-related costs. This action was complete in fiscal 2019 and the remaining charges were paid during fiscal year 2020. The following is a summary of the costs incurred and remaining balances included in accrued expenses related to the Ithaca Plan actions taken (in thousands): Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 1,481 3,969 5,450 Charges paid/settled (1,468) (3,899) (5,367) Balance - September 27, 2019 $ 13 $ 70 $ 83 Charges and adjustments — (40) (40) Charges paid/settled (13) (30) (43) Balance - October 2, 2020 $ — $ — $ — Long Beach, Belfast and Sydney Plan During the fiscal quarter ended December 29, 2017, we initiated plans to restructure and close our facilities in Long Beach, California, Belfast, United Kingdom and Sydney, Australia (the “Long Beach, Belfast and Sydney Plan”). The operations from the Long Beach facility were consolidated into our other California locations in order to achieve operational synergies. The Belfast and Sydney facilities were closed as we discontinued certain product development activities that were performed in those locations. During the fiscal year ended September 28, 2018, we incurred $6.3 million, including $2.8 million of employee-related costs and $3.5 million of facility-related costs. This action was complete in fiscal 2018, no further costs were incurred and all remaining payments were made in the fiscal year ended September 27, 2019. The following is a summary of the costs incurred and remaining balances included in accrued expenses related to the Long Beach, Belfast and Sydney Plan actions taken (in thousands): Employee-Related Expense Facility-Related Expense Total Balance - September 29, 2017 $ — $ — $ — Charges 2,789 3,476 6,265 Charges paid/settled (2,700) (3,476) (6,176) Balance - September 28, 2018 $ 89 $ — $ 89 Charges — — — Charges paid/settled (89) — (89) Balance - September 27, 2019 $ — $ — $ — |
Product Warranties
Product Warranties | 12 Months Ended |
Oct. 02, 2020 | |
Guarantees [Abstract] | |
Product Warranties | PRODUCT WARRANTIESWe establish a product warranty liability at the time of revenue recognition. Product warranties generally have terms of 12 months and cover nonconformance with specifications and defects in material or workmanship. For sales to distributors, our warranty generally begins when the product is resold by the distributor. The liability is based on estimated costs to fulfill customer product warranty obligations and utilizes historical product failure rates. Should actual warranty obligations differ from estimates, revisions to the warranty liability may be required. Product warranty liability activity is as follows (in thousands): Fiscal Years 2020 2019 2018 Balance — beginning of year $ 3,273 $ 5,756 $ 3,672 (Divested)/acquired — — (49) Provisions (benefit) 2,271 (3,053) 1,865 (Payments) direct charges (3,686) 570 268 Balance — end of year $ 1,858 $ 3,273 $ 5,756 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Oct. 02, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS Amortization expense related to intangible assets is as follows (in thousands): Fiscal Years 2020 2019 2018 Cost of revenue $ 17,462 $ 29,847 $ 33,429 Selling, general and administrative 32,868 44,872 48,265 Total $ 50,330 $ 74,719 $ 81,694 Intangible assets consist of the following (in thousands): October 2, September 27, Acquired technology $ 179,434 $ 179,682 Customer relationships 245,870 245,870 Trade name, indefinite lived 3,400 3,400 Total 428,704 428,952 Less accumulated amortization (297,806) (247,724) Intangible assets — net $ 130,898 $ 181,228 As of October 2, 2020, our estimated amortization of our intangible assets in future fiscal years, was as follows (in thousands): 2021 2022 2023 2024 2025 Thereafter Amortization expense $ 46,213 33,433 26,048 15,410 3,489 2,905 Accumulated amortization for the acquired technology and customer relationships was $152.1 million and $145.7 million, respectively, as of October 2, 2020, and $134.8 million and $112.9 million, respectively, as of September 27, 2019. A summary of the activity in intangible assets and goodwill follows (in thousands): Gross Intangible Assets Total Intangibles Acquired Customer Trade Name Total Goodwill Balance as of September 28, 2018 $ 773,307 $ 251,673 $ 518,234 $ 3,400 $ 314,076 Currency translation adjustments 270 270 — — 651 Impairments of intangible assets (344,625) (72,261) (272,364) — — Balance as of September 27, 2019 428,952 179,682 245,870 3,400 314,727 Currency translation adjustments — — — — 285 Disposals of intangible assets (248) (248) — — — Balance as of October 2, 2020 $ 428,704 $ 179,434 $ 245,870 $ 3,400 $ 315,012 See Note 16 - Impairments , for additional information related to the impairment of our intangible assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 02, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Deferred income taxes reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The components of our deferred tax assets and liabilities are as follows (in thousands): October 2, September 27, Deferred tax assets: Net operating loss and credit carryforward $ 278,418 $ 263,199 Intangible assets 15,880 9,887 Property and equipment 3,274 — Accrued expenses 14,564 16,149 Minority equity investments 1,010 784 Lease obligations 12,732 — Interest 5,471 7,170 Gross deferred tax asset 331,349 297,189 Less valuation allowance (277,442) (252,536) Deferred tax asset, net of valuation allowance $ 53,907 $ 44,653 Deferred tax liabilities: Property and equipment $ — $ (1,473) Right of use lease asset $ (14,057) $ — Deferred tax liabilities $ (14,057) $ (1,473) Net deferred tax asset $ 39,850 $ 43,180 As of October 2, 2020, we had $908.0 million of gross federal net operating loss (“NOL”) carryforwards, primarily related to acquisitions made in prior fiscal years. The federal NOL carryforwards will expire at various dates through 2038 for losses generated prior to the tax period ended September 27, 2019. For losses generated during the tax period ended September 27, 2019 and future years, the NOL carryforward period is infinite. The reported net operating loss carryforward includes any limitation under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, which applies to an ownership change as defined under Section 382. The domestic and foreign (loss) income from continuing operations before taxes were as follows (in thousands): Fiscal Years 2020 2019 2018 United States $ (65,915) $ (458,617) $ (145,851) Foreign 24,353 35,464 (9,384) (Loss) income from operations before income taxes $ (41,562) $ (423,153) $ (155,235) The components of the provision (benefit) for income taxes are as follows (in thousands): Fiscal Years 2020 2019 2018 Current: Federal $ (834) $ 70 $ (6,876) State 48 36 (160) Foreign 1,958 876 1,642 Current provision (benefit) 1,172 982 (5,394) Deferred: Federal (8,635) (21,560) 75,428 State (22,613) 12,907 (15,526) Foreign 9,686 (41,108) (24,652) Change in valuation allowance 24,906 9,424 (51,329) Deferred provision (benefit) 3,344 (40,337) (16,079) Total provision (benefit) $ 4,516 $ (39,355) $ (21,473) We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making this determination, we consider available positive and negative evidence and factors that may impact the valuation of our deferred tax asset including results of recent operations, future reversals of existing taxable temporary differences, projected future taxable income, and tax-planning strategies. We have significant negative objective evidence in the form of adjusted cumulative losses in the U.S. over the three-year period ended October 2, 2020 that resulted in our continued determination that there was not sufficient objectively verifiable positive evidence to offset this negative objective evidence and we concluded that a full valuation allowance was still appropriate for our U.S. deferred tax assets. The $277.4 million of valuation allowance as of October 2, 2020 relates primarily to federal and state NOLs, tax credit carryforwards and a partial valuation allowance on tax credits in Canada of $8.0 million whose recovery is not considered more likely than not. The $252.5 million of valuation allowance as of September 27, 2019 related primarily to federal and state NOLs, tax credit carryforwards and a partial valuation allowance on tax credits in Canada of $19.0 million, for which recovery is not considered likely. The change during the fiscal year ended October 2, 2020 of $24.9 million primarily relates to an increase in our state NOLs and an increase in our federal and state tax credits. Our effective tax rates differ from the federal and statutory rate as follows: Fiscal Years 2020 2019 2018 Federal statutory rate 21.0% 21.0% 24.5% Change in valuation allowance (60.5) (2.4) 34.0 Provision to return adjustments 25.4 0.3 8.3 Research and development credits 20.7 1.4 9.0 Global Intangible Low Taxed Income (11.4) (2.9) — Foreign rate differential 9.1 1.6 5.1 Warrant liability (6.5) — 4.4 Intra-entity license transfer (4.6) 9.4 — Nondeductible compensation expense (4.1) (0.6) 1.4 State taxes net of federal benefit 0.9 0.9 0.8 Section 382 adjustment — (19.3) — Nondeductible legal fees — — 0.9 2017 tax reform — — (73.7) Other permanent differences (0.9) (0.1) (0.9) Effective income tax rate (10.9)% 9.3% 13.8% For fiscal years 2020, 2019 and 2018, the effective tax rates on $41.6 million, $423.2 million and $155.2 million, respectively, of pre-tax loss from continuing operations were (10.9)%, 9.3% and 13.8%, respectively. The effective income tax rates for fiscal years 2020, 2019 and 2018 were impacted by a lower income tax rate in many foreign jurisdictions in which our foreign subsidiaries operate, changes in valuation allowance, research and development tax credits, and a fair market value adjustment of warrant liability. For fiscal year 2020, the effective tax rate was also impacted by an adjustment in our Section 382 limitation which increased our California NOL carryforwards and the inclusion of Global Intangible Low Taxed Income. For fiscal year 2019, the effective tax rate was also impacted by a change in our NOL carryforward due to an adjustment in our Section 382 limitation from a prior period acquisition and the immediate recognition of the current and deferred income tax effects totaling $39.8 million from an intra-entity transfer of a license for intellectual property to a higher taxed jurisdiction that received a tax basis step-up. For fiscal year 2018, the effective tax rate was also impacted by the Tax Cuts and Jobs Act (the “Tax Act”). On March 27, 2020, the U.S. Congress enacted the Coronavirus Aid Relief & Economic Security Act (“CARES Act”). The CARES Act made a technical correction to the Tax Act impacting the Company’s NOL carryforward for the fiscal year ending September 29, 2018 by limiting it to a 20-year carryforward period, rather than having an indefinite life carryforward without the 80% limitation. This technical correction resulted in the Company increasing its indefinite lived deferred tax liability by $1.4 million during fiscal year 2020, with an offsetting adjustment to tax expense. During fiscal year 2019 we finalized our calculation of the one-time deemed repatriation of gross foreign earnings and profits, totaling $156.8 million, which resulted in approximately $86.7 million in U.S. taxable income for the year ended September 28, 2018 with Grand Cayman and Ireland accounting for $59.7 million and $25.6 million, respectively. Due to the fact that we are in a full U.S. valuation allowance, this one-time deemed repatriation had no impact on our tax expense for fiscal year 2018. On December 22, 2017, the U.S. Congress enacted the Tax Act, which enacted a wide range of changes to the U.S. corporate income tax system, many of which differ significantly from the provisions of the previous U.S. tax law. The Tax Act also transitions international taxation from a worldwide system with deferral to a modified territorial system and includes base erosion prevention measures on non-U.S. earnings, which has the effect of subjecting certain earnings of our foreign subsidiaries to U.S. taxation as Global Intangible Low Taxed Income. These changes became effective in our fiscal year ending September 29, 2018. The liability for unrecognized tax benefits was $0.3 million as of October 2, 2020, September 27, 2019 and September 28, 2018 and there were no additions or reductions to this liability during fiscal years 2020 or 2019. The balance of the unrecognized tax benefit as of October 2, 2020, is included in other long-term liabilities in the accompanying Consolidated Balance Sheets. The entire balance of unrecognized tax benefits, if recognized, will reduce income tax expense. It is our policy to recognize any interest and penalties accrued related to unrecognized tax benefits in income tax expense. During fiscal year 2020, we did not make any payment of interest and penalties. We did not accrue for the payment of interest and penalties in the Consolidated Balance Sheets as of October 2, 2020 or September 27, 2019, as the remaining unrecognized tax benefits would only serve to reduce our current federal and state NOL carryforwards, if ultimately recognized. A summary of the fiscal tax years that remain subject to examination, as of October 2, 2020, for the Company’s significant tax jurisdictions are: Jurisdiction Tax Years Subject to Examination United States—federal 2018 - forward United States—various states 2016 - forward Ireland 2016 - forward Generally, we are no longer subject to federal income tax examinations for years before 2018, except to the extent of loss and tax credit carryforwards from those years. |
Share - Based Compensation Plan
Share - Based Compensation Plans | 12 Months Ended |
Oct. 02, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share - Based Compensation Plans | SHARE-BASED COMPENSATION PLANS Stock Plans We have three equity incentive plans: the Amended and Restated 2009 Omnibus Stock Plan (“2009 Plan”), the 2012 Omnibus Incentive Plan, as amended (“2012 Plan”) and the 2012 Employee Stock Purchase Plan, as amended and restated (“ESPP”). Upon the closing of our initial public offering, all shares that were reserved under the 2009 Plan but not awarded were assumed by the 2012 Plan. No additional awards will be made under the 2009 Plan. Under the 2012 Plan, we have the ability to issue incentive stock options (“ISOs”), nonqualified stock options (“NQs”), stock appreciation rights, restricted stock (“RSAs”), restricted stock units (“RSUs”), performance-based stock units (“PRSUs”) and other equity-based awards to employees, directors and outside consultants. The ISOs and NQs must be granted at a price per share not less than the fair value of our common stock on the date of grant. Options granted to date primarily vest based on certain market-based and performance-based criteria as described below. Certain of the share-based awards granted and outstanding as of October 2, 2020, are subject to accelerated vesting upon a sale of the Company or similar changes in control. Options granted generally have a term of four As of October 2, 2020, we had 17.0 million shares available for future issuance under the 2012 Plan and 3.6 million shares available for issuance under our ESPP. Outside of the three equity plans described above, we also grant incentive stock units (“ISUs”) to certain of our international employees which typically vest over four years and for which the fair value is determined by our underlying stock price, which are classified as liabilities and settled in cash upon vesting. As of October 2, 2020, we had 225,523 ISU awards outstanding with a fair value of $7.6 million and an associated accrued compensation liability of $4.6 million. As of September 27, 2019, we had approximately 195,598 ISU awards outstanding with a fair value of $2.0 million recorded as an accrued compensation liability. During fiscal years 2020, 2019 and 2018, 62,344, 69,035 and 68,813 ISU awards vested and were paid at a fair value of $1.9 million, $1.2 million and $1.4 million, respectively. We recorded an expense for these ISU awards of $4.4 million in fiscal year 2020, primarily as a result of an increase in our stock price, and we recorded an expense of $1.3 million and a gain of $1.1 million in fiscal years 2019 and 2018, respectively. These expenses are not included in the share-based compensation expense totals below. Employee Stock Purchase Plan The ESPP allows eligible employees to purchase shares of our common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. In administering the ESPP, the board of directors has limited discretion to set the length of the offering periods thereunder. As of October 2, 2020, total unrecognized compensation cost related to the ESPP was $0.3 million. In fiscal years 2020, 2019 and 2018, 272,469, 421,777 and 305,851 shares of common stock were issued under the ESPP, respectively. The 2012 Plan contains an “evergreen” provision, pursuant to which the number of shares of common stock available for issuance under the 2012 Plan can be increased on the first day of each fiscal year by the lesser of (a) 4.0% of outstanding common stock on a fully diluted basis as of the end of the immediately preceding fiscal year, (b) 1.9 million shares of common stock and (c) a lesser amount determined by the board of directors; provided, however, that any shares from any increases in previous years that are not actually issued will continue to be available for issuance under the 2012 Plan. The ESPP also contains an “evergreen” provision, pursuant to which the number of shares of common stock available for issuance under the ESPP can be increased on the first day of each fiscal year by the lesser of (a) 1.25% of outstanding common stock on a fully diluted basis as of the end of the immediately preceding fiscal year, (b) 550,000 shares of common stock and (c) a lesser amount determined by the board of directors; provided, however, that any shares from any increases in previous years that are not actually issued will continue to be available for issuance under the ESPP. In fiscal year 2020, pursuant to the evergreen provisions, the number of shares of common stock available for issuance under the 2012 Plan and the ESPP were increased by 1.9 million shares and 550,000 shares, respectively. Share-Based Compensation The following table shows a summary of share-based compensation expense included in the Consolidated Statements of Operations during the periods presented (in thousands): Fiscal Years 2020 2019 2018 Cost of revenue $ 3,609 $ 2,936 $ 3,869 Research and development 12,794 8,551 13,448 Selling, general and administrative 19,271 12,305 14,620 Total $ 35,674 $ 23,792 $ 31,937 As of October 2, 2020, the total unrecognized compensation costs related to outstanding stock options, restricted stock awards and units including awards with time-based, performance-based, and market-based vesting was $45.3 million, which we expect to recognize over a weighted-average period of 2.1 years. Stock Options A summary of stock option activity for fiscal year 2020 is as follows (in thousands, except per share amounts and contractual term): Number of Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Options outstanding - September 27, 2019 376 $ 13.58 Granted — — Exercised (51) 3.70 Forfeited, canceled or expired — — Options outstanding - October 2, 2020 325 $ 15.12 6.99 $ 6,071 Options vested and expected to vest - October 2, 2020 325 $ 15.12 6.99 $ 6,071 Options exercisable - October 2, 2020 40 $ 17.50 3.57 $ 652 Aggregate intrinsic value represents the difference between our closing stock price on October 2, 2020, and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was $1.4 million, $0.7 million and $0.9 million for fiscal years 2020, 2019 and 2018, respectively. Stock Options with Market-based Vesting Criteria We grant NQs that are subject to vesting only upon the market price of our underlying public stock closing above a certain price target within seven years of the date of grant. Share-based compensation expense is recognized regardless of the number of awards that are earned based on the market condition and is recognized on a straight-line basis over the estimated service period of approximately three years. If the required service period is not met for these options, then the share-based compensation expense would be reversed. In the event that our common stock achieves the target price per share based on a 30-day trailing average prior to the end of the estimated service period, any remaining unamortized compensation cost will be recognized. There were no stock options with market-based vesting criteria granted for fiscal year 2020. Stock options with market-based vesting criteria granted for fiscal years 2019 and 2018 were 585,000 and 325,000, respectively, at weighted average grant date fair values of $7.47 and $15.52 per share, or total grant date fair value of $2.4 million and $5.0 million, respectively. These NQs with market-based vesting criteria were valued using a Monte Carlo simulation model. The weighted average Monte Carlo input assumptions used for calculating the fair value of these market-based stock options are as follows: Fiscal Years 2019 2018 Risk-free interest rate 2.8 % 2.3 % Expected term (years) 3.9 3.4 Expected volatility 51.9 % 45.8 % Target price $53.87 $98.99 During our fiscal first quarter of 2019, we canceled 1,122,500 performance-based stock options with a concurrent grant of 748,328 PRSUs for 13 then current employees, which was accounted for as a modification. The incremental compensation cost resulting from the modification was $8.2 million, and was being recognized as share-based compensation expense over the requisite service period of three years for the new PRSU awards. As a result of subsequent actions that resulted in forfeitures, the remaining compensation expense associated with this modification as of October 2, 2020 was $1.7 million. Restricted Stock Awards and Units A summary of restricted stock awards and units activity for fiscal year 2020 is as follows (in thousands): Number of Shares Weighted-Average Grant Date Fair Value Issued and unvested - September 27, 2019 2,615 $ 21.81 Granted 1,210 22.07 Vested (648) 26.24 Forfeited, canceled or expired (389) 22.18 Issued and unvested - October 2, 2020 2,788 20.84 The total fair value of restricted stock awards and units vested was $19.1 million, $11.7 million and $19.7 million for the fiscal years 2020, 2019 and 2018, respectively. RSUs granted generally vest over a period of three or four years. In addition to RSUs, we also issue PRSUs with specific performance vesting criteria. These PRSUs have both a service and performance-based vesting condition and awards are divided into three equal tranches and vest based on achieving certain adjusted earnings per share growth metrics. The service condition requires participants to be employed in November following the performance period in which the performance condition was met, when the Company's annual financial performance is announced to the financial markets. Depending on the actual performance achieved, a participant may earn between 0% to 300% of the targeted shares for each tranche, which is determined based on a straight-line interpolation applied for the achievement between the specified performance ranges. As of October 2, 2020, the performance condition for 147,929 target shares had been met, and 443,787 shares with a total grant date fair value of $7.9 million vested in November 2020 when the service condition was achieved. During fiscal year 2020, we granted 132,668 PRSUs and 168,481 were forfeited. The amount of incremental PRSU awards that could ultimately vest if all performance criteria are achieved would be 1,388,898 shares assuming a maximum of 300% of the targeted shares. We granted 200,000 market-based RSUs during fiscal year 2019, at a weighted average grant date fair value of $17.65 per share, and a total fair value of $3.5 million. Recipients may earn between 0% and 150% of the target number of shares based on the Company's achievement of total stockholder return in comparison to a peer group of companies in the Nasdaq composite index over a period of approximately three years. The fair value of the awards was estimated using a Monte Carlo simulation and compensation expense is recognized ratably over the service period based on the grant date fair value of the awards of $3.5 million subject to the market condition. The expected volatility of the Company's common stock was estimated based on the historical average volatility rate over the three-year period. The dividend yield assumption was based on historical and anticipated dividend payouts. The risk-free rate assumption was based on observed interest rates consistent with the three-year measurement period. The assumptions used to value the awards are as follows: Fiscal Year 2019 Risk free interest rate 1.9 % Years to maturity 3.33 Expected volatility rate 61.5 % Dividend yield — |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Oct. 02, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY We have authorized 10 million shares of $0.001 par value preferred stock and 300 million shares of $0.001 par value common stock as of October 2, 2020 and September 27, 2019. The outstanding shares of common stock as of October 2, 2020 presented in the accompanying Consolidated Statements of Stockholders’ Equity, excludes 5,414 unvested shares of restricted stock awards, issued as compensation to employees that were subject to forfeiture. There were no unvested shares of restricted stock awards that were subject to forfeiture as of September 27, 2019. Common Stock Warrants —In March 2012, we issued warrants to purchase 1,281,358 shares of common stock for $14.05 per share. The warrants expire December 21, 2020, or earlier as per the terms of the agreement, including immediately following consummation of a sale of all or substantially all assets or capital stock or other equity securities, including by merger, consolidation, recapitalization or similar transactions. We do not currently have sufficient registered and available shares to immediately satisfy a request for registration, if such a request were made. As of October 2, 2020, no exercise of the warrants had occurred and no request had been made to register the warrants or any underlying securities for resale by the holders. On November 11, 2020, we issued 850,311 shares of common stock related to a cashless exercise of 1,270,679 shares associated with the warrants. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Oct. 02, 2020 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS During fiscal year 2020, we sold $0.4 million of commercial products to Mission Microwave Technologies, LLC (“Mission”), a MACOM customer and an affiliate of directors John and Susan Ocampo. Together, Mr. and Mrs. Ocampo are MACOM's largest stockholders. Stephen G. Daly, MACOM's President and Chief Executive Officer, has an equity interest of less than 1% in Mission. Darktrace Limited (“Darktrace”), a MACOM vendor and an affiliate of director Peter Chung, provides us with cybersecurity technology and cyber defense offerings. During fiscal year 2020 and 2019 we made payments of approximately $0.1 million and $0.1 million, respectively, to Darktrace. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Oct. 02, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DIVESTED BUSINESS AND DISCONTINUED OPERATIONS Divested Business On May 10, 2018, we completed the sale and transfer of the LR4 business, pursuant to an Asset Purchase and Intellectual Property License Agreement, dated April 30, 2018 (the “LR4 Agreement”). As a result of the transaction, during fiscal year 2018 we recorded a loss on disposal of $34.3 million associated with LR4 business as other expense, comprised of expected proceeds of $17.2 million less the carrying value of assets sold. The transaction did not meet the criteria of discontinued operations. During the quarter ended July 3, 2020, we received payment of $13.2 million for our outstanding net receivable with the buyer, inclusive of $11.0 million related to the sale of the LR4 business. Discontinued Operations On October 27, 2017, we entered into a purchase agreement to sell the Compute business. In consideration for the transfer and sale of the Compute business, we received an equity interest in the buyer valued at approximately $36.5 million, representing the carrying value of the assets divested and representing less than 20.0% of the buyer's total outstanding equity. The operations of the Compute business were accounted for as discontinued operations through the date of divestiture. The accompanying Consolidated Statements of Operations includes the following operating results related to these discontinued operations (in thousands): Fiscal Year 2018 Revenue $ — Cost of revenue (596) Gross profit (loss) 596 Operating expenses: Research and development 5,251 Selling, general and administrative 1,560 Total operating expenses 6,811 Loss from discontinued operations (6,215) Loss income before income taxes (6,215) Income tax provision (benefit) — Loss income from discontinued operations (6,215) Cash flow used in Operating Activities (10,734) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Oct. 02, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table set forth the computation for basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Fiscal Years 2020 2019 2018 Numerator: Loss from continuing operations $ (46,078) $ (383,798) $ (133,762) Loss from discontinued operations — — (6,215) Net loss (46,078) (383,798) (139,977) Warrant liability gain — — (27,646) Net loss attributable to common stockholders $ (46,078) $ (383,798) $ (167,623) Denominator: Weighted average common shares outstanding-basic 66,606 65,686 64,741 Dilutive effect of warrants — — 570 Weighted average common shares outstanding-diluted 66,606 65,686 65,311 Common stock earnings per share-basic: Continuing operations $ (0.69) $ (5.84) $ (2.07) Discontinued operations — — (0.10) Net common stock earnings per share-basic $ (0.69) $ (5.84) $ (2.16) Common stock earnings per share-diluted: Continuing operations $ (0.69) $ (5.84) $ (2.47) Discontinued operations — — (0.10) Net common stock earnings per share-diluted $ (0.69) $ (5.84) $ (2.57) As of October 2, 2020, we had warrants outstanding which were reported as a liability on the consolidated balance sheet. During fiscal years 2019 and 2018, we recorded gains of $0.8 million and $27.6 million, associated with adjusting the fair value of the |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Oct. 02, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of accumulated other comprehensive income (loss), net of income taxes, are as follows (in thousands): Foreign Currency Items Other Items Total Balance - September 28, 2018 $ 2,637 $ (449) $ 2,188 Foreign currency translation loss, net of tax 1,693 — 1,693 Unrealized loss on short-term investments, net of tax — 477 477 Balance - September 27, 2019 4,330 28 4,358 Foreign currency translation gain, net of tax 458 — 458 Unrealized gain on short-term investments, net of tax — 193 193 Balance as of October 2, 2020 $ 4,788 $ 221 $ 5,009 |
Geographic and Significant Cust
Geographic and Significant Customer Information | 12 Months Ended |
Oct. 02, 2020 | |
Segment Reporting [Abstract] | |
Geographic and Significant Customer Information | GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION We have one reportable operating segment that designs, develops, manufactures and markets semiconductors and modules. The determination of reportable operating segments is based on the chief operating decision maker’s (“CODM”) definition of the business and the nature and use of financial information provided for the purposes of assessing performance and making operating decisions. The Company's CODM is its President and Chief Executive Officer. The results of operations provided to and analyzed by the CODM are at the consolidated level and accordingly, key resources and assessments of performance are performed at the consolidated level. The Company assesses its determination of operating segments at least annually. We continue to evaluate our internal reporting structure and the potential impact of any changes on our segment reporting. For information regarding revenue by geographic regions, based upon customer locations, see Note 3 - Revenue . Information regarding net property and equipment in different geographic regions is presented below (in thousands): As of October 2, September 27, Net Property and Equipment by Geographic Region United States $ 99,118 $ 116,037 Europe (1) 13,129 7,377 Other Countries (2) 6,619 9,233 Total $ 118,866 $ 132,647 (1) Europe represents Finland, France, Germany, Ireland and Italy. (2) Other than the United States and Europe, no country or region represented greater than 10% of the total net property and equipment as of the dates presented. The following is a summary of customer concentrations as a percentage of total sales and accounts receivable as of and for the periods presented: Fiscal Years Revenue 2020 2019 2018 Customer A 14 % 16 % 13 % Customer B 12 % — — Customer C 12 % — — October 2, September 27, Accounts Receivable Customer A 20 % 24 % Customer D 8 % 10 % |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 02, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation, Basis of Presentation and Reclassification | Principles of Consolidation, Basis of Presentation and Reclassification —We have one reportable segment, semiconductors and modules. The accompanying consolidated financial statements include our accounts and the accounts of our majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the Consolidated Balance Sheets, certain prior year balances have been reclassified to conform to the current year presentation. We have a 52- or 53-week fiscal year ending on the Friday closest to the last day of September. The fiscal year 2020 included 53 weeks and fiscal years 2019 and 2018 included 52 weeks. To offset the effect of holidays, for fiscal years in which there are 53 weeks, we typically include the extra week arising in our fiscal years in the first quarter. Our first quarter of fiscal year 2020, ended January 3, 2020, included 14 weeks. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, we base estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. |
Discontinued Operations | Discontinued Operations—In the first quarter of fiscal year 2018, we divested AppliedMicro's compute business (the “Compute business”). The operating results of the Compute business are reflected in discontinued operations. In the third quarter of fiscal year 2018, we divested our Japan-based long-range optical subassembly business (the “LR4 business”). The operating results of the LR4 business have been reflected in our continuing operations up through the May 10, 2018 sale date, with the $34.3 million loss on disposal recorded as other expense. |
Foreign Currency Translation and Remeasurement | Foreign Currency Translation and Remeasurement —Our consolidated financial statements are presented in U.S. dollars. While the majority of our foreign operations use the U.S. dollar as the functional currency, the financial statements of our foreign operations for which the functional currency is not the U.S. dollar are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates (for assets and liabilities) and at average exchange rates (for revenue and expenses). The unrealized translation gains and losses on the net investment in these foreign operations are accumulated as a component of other comprehensive (loss) income. The financial statements of our foreign operations where the functional currency is the U.S. dollar, but where the underlying transactions are transacted in a different currency, are remeasured at the exchange rate in effect at the balance sheet date with respect to monetary assets and liabilities. Nonmonetary assets and liabilities, such as inventories and property and equipment and related statements of operations accounts, such as cost of revenue and depreciation, are remeasured at historical exchange rates. Revenue and expenses, other than cost of revenue, amortization and depreciation, are translated at the average exchange rate for the period in which the transaction occurred. The net gains and losses on foreign currency remeasurement are reflected in selling, general and administrative expense in the accompanying Consolidated Statements of Operations. Net foreign exchange transaction gains and losses for all periods presented were not material. |
Cash and Cash Equivalents | Cash and Cash Equivalents—Cash equivalents are primarily composed of short-term, highly-liquid instruments with an original maturity of 90 days or less and consist primarily of money market funds. |
Investments | Investments — Short-term investments: We classify our short-term investments as available-for-sale. Our investments classified as available-for-sale are recorded at fair value based upon third party pricing at period end. Unrealized gains and losses that are deemed temporary in nature are recorded in accumulated other comprehensive income and loss as a separate component of stockholders’ equity. A decline in the fair value of any debt security below cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. Premiums and discounts are amortized (accreted) over the life of the related security as an adjustment to its yield. Dividend and interest income are recognized when earned. Realized gains and losses are included in other income and expense in our Consolidated Statements of Operations and are derived using the specific identification method for determining the cost of investments sold. Other investments: We use the equity method to account for investments in companies if the investment provides us with the ability to exercise significant influence over operating and financial policies of the investee. Our proportionate share of the net income (loss) resulting from these investments are reported within the Other expense line in our Consolidated Statements of Operations. The carrying value of our equity method investment is reported in Other investments in our Consolidated Balance Sheets. Our equity method investment is reported at cost and adjusted each period for our share of the investee’s income or loss and dividends paid, if any, as well as any changes attributable to the equity of the investee that would impact our ownership. Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for as an equity security, at cost less impairment, and reported in Other investments in our Consolidated Balance Sheets. We have elected to measure our equity security, which does not have a readily determinable fair value and does not qualify for the practical expedient under Accounting Standards Codification (“ASC”) 820, Fair Value Measurement , at cost less any impairment. The investment is periodically evaluated for impairment. An impairment loss is recorded whenever there is a decline in value of an investment below its carrying amount that is determined to be other than temporary. |
Inventories | Inventories —Inventories are stated at the lower of cost or net realizable value. We use a combination of standard cost and moving weighted-average cost methodologies to determine the cost basis for our inventories, approximating a first-in, first-out basis. The standard cost of finished goods and work-in-process inventory is composed of material, labor and manufacturing overhead, which approximates actual cost. In addition to stating inventory at the lower of cost or net realizable value, we also evaluate inventory each reporting period for excess quantities and obsolescence, establishing reserves when necessary based upon historical experience, assessment of economic conditions and expected demand. Once recorded, these reserves are considered permanent adjustments to the carrying value of inventory. |
Property and Equipment | Property and Equipment —Property and equipment is stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements that significantly extend the useful life of the assets are capitalized as additions to property and equipment. Property and equipment are depreciated or amortized using the straight-line method over the following estimated useful lives: Asset Classification Estimated Useful Life Buildings and improvements 20 - 40 Computer equipment and software 2 - 5 Furniture and fixtures 7 - 10 Finance lease assets and leasehold improvements Shorter of useful life or term of lease Machinery and equipment 2 - 7 |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets —We have goodwill and certain intangible assets with indefinite lives which are not subject to amortization. These are reviewed for impairment annually as of the end of our fiscal August month end and more frequently if events or changes in circumstances indicate that the assets may be impaired. For our assessment of goodwill impairment, we compare the carrying value of the reporting unit to the fair value of the Company. For our assessment of indefinite-lived assets we compare the carrying value of the asset to the estimated fair value of the asset. If impairment exists, a loss is recorded to write down the value of the assets to their implied fair values. We performed our annual impairment test of our goodwill and indefinite-lived intangible assets and the results of this test indicated that our goodwill and indefinite-lived intangible assets were not impaired as of August 28, 2020. There were no indicators of impairment noted during the fiscal year ended |
Impairment of Long-Lived Assets | Long-Lived Asset Valuation and Impairment Assessment —Long-lived assets include property and equipment and definite-lived intangible assets subject to amortization. We evaluate long-lived assets for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to, significant decreases in the market price of the asset or asset group, significant adverse changes in the business climate or legal factors, the accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset, current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset and a current expectation that the asset will more likely than not, be sold or disposed of significantly before the end of its previously estimated useful life. In evaluating a long-lived asset for recoverability, we estimate the undiscounted cash flows expected to result from our use and eventual disposition of the asset. If the sum of the expected undiscounted cash flows is less than the carrying amount of the asset group, an impairment loss, equal to the excess of the carrying amount over the fair value of the asset, is recognized. In fiscal years 2019 and 2018, we recorded impairment charges, see Note 16 - Impairments |
Other Intangible Assets | Other Intangible Assets—Our other intangible assets, including acquired technology and customer relationships, are definite-lived assets and are subject to amortization. We amortize definite-lived assets over their estimated useful lives, which range from five |
Revenue Recognition | Revenue Recognition —Substantially all of our revenue is derived from sales of high-performance RF, microwave, millimeterwave and lightwave semiconductor solutions into three primary markets: Telecom, I&D and Data Center. In fiscal year 2018, we recognized revenue under ASC 605, Revenue Recognition, when: (i) persuasive evidence of an arrangement existed; (ii) delivery or services had been rendered; (iii) the price was fixed or determinable; and (iv) collectability was reasonably assured. We recognized revenue with the transfer of title and risk of loss and provided for reserves for returns and other allowances. In fiscal years 2019 and 2020, we recognized revenue within the scope of ASC 606, Revenue from Contracts with Customers. Revenue is recognized when a customer obtains control of products or services in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of ASC 606, we perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) we satisfy performance obligations. Sales, value add and other taxes collected on behalf of third parties are excluded from revenue. Our revenue arrangements do not contain significant financing components. Contracts with our customers principally contain only one distinct performance obligation, which is the sale of products. However, due to multiple products potentially being sold on a single order, we are required to allocate consideration based on the estimated relative standalone selling prices of the promised products. Periodically, we enter into non-product development and license contracts with certain customers. We generally recognize revenue from these contracts over-time as services are provided based on the terms of the contract. Non-product development and license revenue is not significant to our Revenue or Consolidated Statements of Operations for the periods presented. Revenue is deferred for amounts billed or received prior to delivery of the services. Certain contracts may contain multiple performance obligations for which we allocate revenue to each performance obligation based on the relative stand-alone selling price. Our product revenue is recognized when the customer obtains control of the product or services, which generally occurs at a point in time, and is based on the contractual shipping terms of a contract. Non-product revenue is generally recognized over time. For each contract, the promise to transfer the control of the products or services, each of which is individually distinct, is considered to be the identified performance obligation. We provide an assurance type warranty which is not sold separately and does not represent a separate performance obligation. Therefore, we account for such warranties under ASC 460, Guarantees , and the estimated costs of warranty claims are generally accrued as cost of revenue in the period the related revenue is recorded. We have agreements with certain distribution customers which may include certain rights of return and pricing programs, including returns for aged inventory, stock rotation and price protection which affect the transaction price. Sales to these customers and programs offered are in accordance with terms set forth in written agreements, which require us to assess the potential revenue effects of this variable consideration utilizing the expected value method. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. As such, revenue on sales to customers that include rights of return and pricing programs are recorded net of estimated variable consideration, utilizing the expected value method based on historical sales data. We believe that the judgments and estimates we utilize are reasonable based upon current facts and circumstances, however utilizing different judgments and estimates could result in different amounts. Practical Expedients and Elections — ASC 606 requires that we disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of the reporting periods presented. The guidance provides certain practical expedients that limit this requirement and, therefore, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which we have the right to invoice for services performed. We have elected not to disclose the aggregate amount of transaction prices associated with unsatisfied or partially unsatisfied performance obligations for contracts where these criteria are met. Our policy is to capitalize any incremental costs incurred to obtain a customer contract, only to the extent that the benefit associated with the costs is expected to be longer than one year. Capitalizable contract costs were not significant at the date of adoption or as of September 27, 2019 and October 2, 2020. We account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. When shipping and handling costs are incurred after a customer obtains control of the products, we have elected to account for these as costs to fulfill the promise and not as a separate performance obligation. Shipping and handling costs associated |
Research and Development Costs | Research and Development Costs —Costs incurred in the research and development of products are expensed as incurred. |
Income Taxes | Income Taxes —Deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities, using rates anticipated to be in effect when such temporary differences reverse. A valuation allowance against net deferred tax assets is required if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We provide reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. Reserves are based on a determination of whether and how much of a tax benefit is taken by us in our tax filings or positions that are more likely than not to be realized following an examination by taxing authorities. We recognize the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a “more-likely-than-not” threshold, the amount recognized in the financial statements is the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. |
Earnings Per Share | Earnings Per Share—Basic net (loss) income per share is computed by dividing net (loss) income by the weighted-average number of common shares outstanding during the period, excluding the dilutive effect of common stock equivalents. Diluted net (loss) income per share reflects the dilutive effect of common stock equivalents, such as stock options, warrants and restricted stock units, using the treasury stock method |
Fair Value Measurements | Fair Value Measurements —Financial assets and liabilities are measured at fair value. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability at the measurement date under current market conditions in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, we group financial assets and liabilities in a three-tier fair value hierarchy, according to the inputs used in measuring fair value as follows: • Level 1—observable inputs such as quoted prices in active markets for identical assets and liabilities; • Level 2—inputs other than quoted prices in active markets that are observable either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical assets and liabilities in markets that are not active and model-based valuation techniques for which significant assumptions are observable in active markets; and, • Level 3—unobservable inputs for which there is little or no market data, requiring us to develop our own assumptions for model-based valuation techniques. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. We recognize transfers between levels of the fair value hierarchy at the end of the reporting period. Money market funds are actively traded and consist of highly liquid investments with original maturities of 90 days or less. They are measured at their net asset value and classified as Level 1. Corporate and agency bonds and commercial paper are categorized as Level 2 assets except where sufficient quoted prices exist in active markets, in which case such securities are categorized as Level 1 assets. These securities are valued using third-party pricing services. These services may use, for example, model-based pricing methods that utilize observable market data as inputs. We generally use quoted prices for recent trading activity of assets with similar characteristics to the debt security or bond being valued. The securities and bonds priced using such methods are generally classified as Level 2. Broker dealer bids or quotes on securities with similar characteristics may also be used. Our common stock warrants are classified as Level 3 due to unobservable inputs. We use the Black-Scholes option-pricing model to estimate the fair value of our common stock warrants, inclusive of assumptions for the risk-free interest rate, dividends, expected term and estimated volatility. |
Share-Based Compensation | Share-Based Compensation —We account for all share-based compensation arrangements using the fair value method. We recognize compensation expense on a straight-line basis over the expected or requisite service period of the award, which is generally the vesting period of each separately vesting tranche, and providing that the minimum amount of compensation recorded is equal to the vested portion of the award. We record the expense in the Consolidated Statements of Operations in the same manner in which the award recipients’ salary costs are classified. For restricted stock awards we use the closing stock price on the date of grant to estimate the fair value of the awards. We use the Black-Scholes option-pricing model to estimate the fair value of stock options with service and performance conditions, inclusive of assumptions for risk-free interest rates, dividends, expected terms and estimated volatility. We use the Monte Carlo Simulation analysis to estimate the fair value of stock options and awards with market conditions, inclusive of assumptions for risk free interest rates, expected term, expected volatility and the target price. We derive the risk-free interest rate assumption from the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to the expected term of the |
Guarantees and Indemnification Obligations | Guarantees and Indemnification Obligations —We enter into agreements in the ordinary course of business with, among others, customers, distributors and OEMs. Most of these agreements require us to indemnify the other party against third-party claims alleging that a Company product infringes a patent and/or copyright. Certain agreements in which we grant limited licenses to Company intellectual property require us to indemnify the other party against third-party claims alleging that the use of the licensed intellectual property infringes a third-party's intellectual property. Certain of these agreements require us to indemnify the other party against certain claims relating to property damage, personal injury or the acts or omissions, its employees, agents or representatives. In addition, from time to time, we have made certain guarantees in the form of warranties regarding the performance of Company products to customers. We have agreements with certain vendors, creditors, lessors and service providers pursuant to which we have agreed to indemnify the other party for specified matters, such as acts and omissions, its employees, agents or representatives. We have procurement or license agreements with respect to technology used in our products and agreements in which we obtain rights to a product from an OEM. Under some of these agreements, we have agreed to indemnify the supplier for certain claims that may be brought against such party with respect to our acts or omissions relating to the supplied products or technologies. Our certificate of incorporation and agreements with certain of our directors and officers and certain of our subsidiaries’ directors and officers provide them indemnification rights, to the extent legally permissible, against liabilities incurred by them in connection with legal actions in which they may become involved by reason of their service as a director or officer. As a matter of practice, we have maintained director and officer liability insurance coverage, including coverage for directors and officers of acquired companies. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pronouncements Adopted in Fiscal Year 2020 On the first day of our fiscal year 2020, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASC 842”), which requires lease arrangements be presented on the lessee’s balance sheet by recording a right-of-use (“ROU”) asset and a lease liability equal to the present value of related future minimum lease payments. We adopted the new lease guidance using the modified retrospective approach and the transition method available in accordance with ASU 2018-11, Leases (Topic 842) : Targeted Improvements, which provides the option to use the effective date as the date of initial application of the guidance. As a result, the comparative information for prior periods has not been adjusted and continues to be reported in accordance with the accounting standards in effect for those periods under the previously applicable guidance. We elected the “practical expedients package of three” permitted under the transition guidance within ASC 842, which permitted us to carry forward our historical assessments of whether contracts contain leases, lease classification, and initial direct costs, for leases in existence prior to September 28, 2019. We evaluated our identified leases and applied the new lease guidance as discussed in Note 10 - Leases . At the effective date, the adoption of ASC 842 resulted in an increase to our total assets of approximately $37.1 million, an increase to our total liabilities of approximately $39.0 million, primarily related to capitalization of operating leases, and a decrease to our retained earnings of approximately $1.9 million primarily due to derecognition of financing obligations and associated assets established under ASC 840, Leases . We have operating leases for certain facilities as well as manufacturing and office equipment. Based on the present value of lease payments for the remaining lease term of our existing leases, we recognized $37.7 million and $43.6 million of both operating ROU assets and operating lease liabilities, respectively, on our consolidated balance sheet upon adoption of ASC 842 on September 28, 2019. The difference between the ROU asset and liability represents deferred rent and lease incentives of approximately $5.9 million, recorded as a reduction to our gross ROU assets. We have finance leases for our corporate headquarters, including our fabrication facility, and to a lesser extent, various manufacturing equipment. Upon the adoption of ASC 842 on September 28, 2019, we derecognized the previous financed assets and financing obligation for our built-to-suit corporate headquarters and recorded a finance lease asset and liability. We also recorded finance lease assets and liabilities for various manufacturing equipment. On September 28, 2019 we recognized a finance lease ROU asset and finance lease liability of $35.7 million and $31.8 million, respectively, on our consolidated balance sheet. The difference between the ROU asset and liability represents net prepaid rent for our corporate headquarters, which is recorded as part of the finance lease ROU asset and is being amortized on a straight-line basis over the remaining lease term. The adoption of the new lease guidance did not have a material impact to the Consolidated Statement of Operations or Cash Flows, or earnings per share for the fiscal year ended October 2, 2020. Pronouncements for Adoption in Subsequent Periods In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU introduces a new accounting model known as Credit Expected Credit Losses (“CECL”), which requires earlier recognition of credit losses. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for receivables at the time the financial asset is originated or acquired, replacing the current incurred loss methodology that delays recognition of credit losses until a probable loss has been incurred. There are other provisions within the standard affecting how impairments of other financial assets may be recorded and presented, as well as expanded disclosures. We adopted this standard on the first day of our fiscal year 2021, October 3, 2020. The adoption of this standard did not have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions to applying the guidance on contract modifications, hedge accounting, and other transactions, to simplify the accounting for transitioning from the London Interbank Offered Rate, and other interbank offered rates expected to be discontinued, to alternative reference rates. The guidance in this Update was effective upon its issuance; if elected, it is to be applied prospectively through December 31, 2022. We are currently evaluating the effect the potential adoption of this ASU will have on our consolidated financial statements, including but not limited to our credit agreement. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life | Property and equipment are depreciated or amortized using the straight-line method over the following estimated useful lives: Asset Classification Estimated Useful Life Buildings and improvements 20 - 40 Computer equipment and software 2 - 5 Furniture and fixtures 7 - 10 Finance lease assets and leasehold improvements Shorter of useful life or term of lease Machinery and equipment 2 - 7 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Revenue [Abstract] | |
Disaggregation of Revenue | The following tables present our revenue disaggregated by markets and geography (in thousands): Fiscal Years 2020 2019 2018 Telecom $ 209,477 $ 180,938 $ 222,940 Industrial & Defense 194,506 204,638 185,360 Data Center 126,054 114,132 162,098 Total $ 530,037 $ 499,708 $ 570,398 Fiscal Years Revenue by Geographic Region 2020 2019 2018 United States $ 217,474 $ 239,510 $ 272,951 China 192,989 132,329 159,763 Asia Pacific, excluding China (1) 84,997 80,136 79,581 Other Countries (2) 34,577 47,733 58,103 Total $ 530,037 $ 499,708 $ 570,398 (1) Asia Pacific represents Taiwan, Japan, Singapore, India, Thailand, South Korea, Australia, Malaysia, New Zealand and the Philippines. (2) No country or region represented greater than 10% of our total revenue as of the dates presented, other than the United States, China and the Asia Pacific region as presented above. |
Contract with Customer, Asset and Liability | The following table presents the changes in contract liabilities during fiscal year 2020 (in thousands): October 2, 2020 September 27, 2019 $ Change % Change Contract liabilities $ 9,861 $ 10,653 $ (792) (7) % |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available for Sale Investments | The amortized cost, gross unrealized holding gains or losses and fair value of our available-for-sale investments by major investments type are summarized in the tables below (in thousands): October 2, 2020 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Corporate bonds $ 68,605 $ 348 $ (333) $ 68,620 Commercial paper 134,913 192 (14) 135,091 Total investments $ 203,518 $ 540 $ (347) $ 203,711 September 27, 2019 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Corporate bonds $ 29,578 $ 112 $ (93) $ 29,597 Commercial paper 71,646 1 (18) 71,629 Total investments $ 101,224 $ 113 $ (111) $ 101,226 |
Summary of Contractual Maturities of Investments | The contractual maturities of available-for-sale investments were as follows (in thousands): October 2, 2020 Less than 1 year $ 138,612 Over 1 year 65,099 Total investments $ 203,711 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis consist of the following (in thousands): October 2, 2020 Fair Value Active Markets for Identical Assets Observable Inputs Unobservable Inputs Assets Money market funds $ 20,139 $ 20,139 $ — $ — Commercial paper 135,091 — 135,091 — Corporate bonds 68,620 — 68,620 — Total assets measured at fair value $ 223,850 $ 20,139 $ 203,711 $ — Liabilities Warrant liability 25,312 — — 25,312 Total liabilities measured at fair value $ 25,312 $ — $ — $ 25,312 September 27, 2019 Fair Value Active Markets for Identical Assets Observable Inputs Unobservable Inputs Assets Money market funds $ 261 $ 261 $ — $ — Commercial paper 71,629 — 71,629 — Corporate bonds 29,597 — 29,597 — Total assets measured at fair value $ 101,487 $ 261 $ 101,226 $ — Liabilities Warrant liability 12,364 — — 12,364 Total liabilities measured at fair value $ 12,364 $ — $ — $ 12,364 |
Quantitative Information Used in Fair Value Calculation of Level 3 Liabilities | The quantitative information utilized in the fair value calculation of our Level 3 liabilities are as follows: Liabilities Valuation Technique Unobservable Input October 2, 2020 September 27, 2019 Warrant liability Black-Scholes model Volatility 61.8% 61.4% Discount rate 0.09% 1.71% Expected life 0.2 years 1.2 years Exercise price $14.05 $14.05 Stock price $33.80 $21.68 Dividend rate —% —% |
Changes in Assets with Inputs Classified within Level 3 of Fair Value | The changes in assets and liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands): Fiscal Year 2020 September 27, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases Sales and October 2, Warrant liability $ 12,364 $ 12,948 $ — $ — $ 25,312 Fiscal Year 2019 September 28, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases Sales and September 27, Contingent consideration $ 585 $ 65 $ — $ (650) $ — Warrant liability $ 13,129 $ (765) $ — $ — $ 12,364 Fiscal Year 2018 September 29, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases Sales and September 28, Contingent consideration $ 1,679 $ (394) $ — $ (700) $ 585 Warrant liability $ 40,775 $ (27,646) $ — $ — $ 13,129 |
Changes in Liabilities with Inputs Classified within Level 3 of Fair Value | The changes in assets and liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands): Fiscal Year 2020 September 27, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases Sales and October 2, Warrant liability $ 12,364 $ 12,948 $ — $ — $ 25,312 Fiscal Year 2019 September 28, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases Sales and September 27, Contingent consideration $ 585 $ 65 $ — $ (650) $ — Warrant liability $ 13,129 $ (765) $ — $ — $ 12,364 Fiscal Year 2018 September 29, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases Sales and September 28, Contingent consideration $ 1,679 $ (394) $ — $ (700) $ 585 Warrant liability $ 40,775 $ (27,646) $ — $ — $ 13,129 |
Accounts Receivables Allowanc_2
Accounts Receivables Allowances (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Receivables [Abstract] | |
Rollforward of Accounts Receivable Allowances | Summarized below is the activity in our accounts receivable allowances including compensation credits and doubtful accounts as follows (in thousands): Fiscal Year 2020 2019 2018 Balance - beginning of year $ 5,047 $ 6,795 $ 9,410 Provision, net 10,774 11,989 15,465 Charge-offs (12,928) (13,737) (18,080) Balance - end of year $ 2,893 $ 5,047 $ 6,795 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following (in thousands): October 2, 2020 September 27, 2019 Raw materials $ 46,954 $ 59,184 Work-in-process 9,324 13,799 Finished goods 35,306 34,897 Total $ 91,584 $ 107,880 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property and equipment consists of the following (in thousands): October 2, September 27, Construction in process $ 16,174 $ 24,848 Machinery and equipment 191,953 175,696 Leasehold improvements 19,854 12,962 Furniture and fixtures 2,659 3,716 Computer equipment and software 18,487 18,116 Capital lease and financed assets — 46,496 Finance lease assets 35,589 — Total property and equipment 284,716 281,834 Less accumulated depreciation and amortization (165,850) (149,187) Property and equipment — net $ 118,866 $ 132,647 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | All principal amounts outstanding and interest rate information as of October 2, 2020, for the Credit Agreement were as follows (in thousands, except rate data): Principal Outstanding LIBOR Rate Margin Effective Interest Rate Term loans $666,087 0.15% 2.25% 2.40% |
Schedule of Remained Outstanding on Term Loans | As of October 2, 2020, the following remained outstanding on the Term Loans: October 2, 2020 September 27, Principal balance $ 666,087 $ 672,971 Unamortized discount (2,205) (3,414) Unamortized deferred financing costs (4,825) (7,400) Total term loans 659,057 662,157 Current portion 6,885 6,885 Long-term, less current portion $ 652,172 $ 655,272 |
Schedule of Minimum Principal Payments under Term Loans | As of October 2, 2020, the minimum principal payments under the Term Loans in future fiscal years were as follows (in thousands): Fiscal year ending: Amount 2021 $ 6,885 2022 6,885 2023 6,885 2024 645,432 Total $ 666,087 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | Included in our Consolidated Balance Sheets were the following amounts related to operating and finance lease assets and liabilities (in thousands): October 2, 2020 September 27, 2019 Consolidated Balance Sheet Classification Assets: Operating lease ROU assets $ 33,307 $ — Other long-term assets Finance lease assets 33,127 — Property and equipment, net Capital lease and financed assets — 40,442 Property and equipment, net Total lease assets $ 66,434 $ 40,442 Liabilities: Current: Operating lease liabilities $ 7,601 $ — Accrued liabilities Finance lease liabilities 1,368 — Current portion of finance lease obligations and other Capital lease and financing obligations — 1,084 Current portion of finance lease obligations and other Long-term: Operating lease liabilities 31,837 — Other long-term liabilities Finance lease liabilities 28,994 — Finance lease obligations and other, less current portion Capital lease and financing obligations — 29,506 Finance lease obligations and other, less current portion Total lease liabilities $ 69,800 $ 30,590 |
Leases, Weighted-Average Lease Term and Discount Rate | The weighted-average remaining lease terms and weighted-average discount rates for operating and finance leases as of October 2, 2020 were as follows: October 2, 2020 Weighted-average remaining lease term (in years): Operating leases 6.4 Finance leases 17.0 Weighted-average discount rate: Operating leases 6.2 % Finance leases 6.7 % |
Lease, Cost | The components of lease expense were as follows (in thousands): Fiscal Year October 2, 2020 Finance lease cost: Amortization of lease assets $ 3,022 Interest on lease liabilities 2,155 Total finance lease cost $ 5,177 Operating lease cost $ 9,815 Variable lease cost $ 2,645 Short-term lease cost $ 368 Sublease income $ (592) Rent expense incurred under non-cancelable operating leases was $9.7 million and $9.5 million in fiscal years 2019 and 2018, respectively. |
Leases, Supplemental Cash Flow Information | Cash paid for amounts included in the measurement of lease liabilities were as follows (in thousands): Fiscal Year Ended October 2, 2020 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 9,562 Operating cash flows from finance leases $ 2,155 Financing cash flows from finance leases $ 1,708 Non-cash activities: Operating lease ROU assets obtained in exchange for new lease liabilities $ 3,788 Financing lease assets obtained in exchange for new lease liabilities $ 586 |
Finance Lease, Liability, Maturity | As of October 2, 2020, maturities of lease payments by fiscal year were as follows (in thousands): Fiscal year ending: Operating Leases Finance Leases 2021 $ 9,771 $ 3,347 2022 8,359 2,836 2023 6,661 2,820 2024 6,228 2,856 2025 4,315 2,783 Thereafter 12,784 37,150 Total lease payments $ 48,118 $ 51,792 Less: interest (8,680) (21,430) Present value of lease liabilities $ 39,438 $ 30,362 |
Lessee, Operating Lease, Liability, Maturity | As of October 2, 2020, maturities of lease payments by fiscal year were as follows (in thousands): Fiscal year ending: Operating Leases Finance Leases 2021 $ 9,771 $ 3,347 2022 8,359 2,836 2023 6,661 2,820 2024 6,228 2,856 2025 4,315 2,783 Thereafter 12,784 37,150 Total lease payments $ 48,118 $ 51,792 Less: interest (8,680) (21,430) Present value of lease liabilities $ 39,438 $ 30,362 |
Schedule of Future Minimum Lease Payments for Capital Leases | As of September 27, 2019, future minimum lease payments for our operating and capital leases were as follows as determined in accordance with the previous guidance under ASC 840, Leases (in thousands): Fiscal year ending: Operating Leases Capital Leases 2020 $ 9,987 $ 3,299 2021 9,233 3,343 2022 7,447 2,884 2023 6,061 2,816 2024 5,564 2,853 Thereafter 16,437 39,927 Total future minimum lease payments $ 54,729 55,122 Less amount representing interest (26,241) Present value of net minimum capital lease payments $ 28,881 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of September 27, 2019, future minimum lease payments for our operating and capital leases were as follows as determined in accordance with the previous guidance under ASC 840, Leases (in thousands): Fiscal year ending: Operating Leases Capital Leases 2020 $ 9,987 $ 3,299 2021 9,233 3,343 2022 7,447 2,884 2023 6,061 2,816 2024 5,564 2,853 Thereafter 16,437 39,927 Total future minimum lease payments $ 54,729 55,122 Less amount representing interest (26,241) Present value of net minimum capital lease payments $ 28,881 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): October 2, September 27, Compensation and benefits $ 32,254 $ 20,455 Distribution costs 8,889 7,797 Deferred revenue 6,346 2,137 Product warranty 1,858 3,273 Restructuring costs 261 2,527 Professional fees 1,300 1,554 Rent and utilities 589 701 Income taxes payable 734 1,233 Current portion of operating leases 7,601 — Other 3,822 2,368 Total accrued liabilities $ 63,654 $ 42,045 |
Restructurings (Tables)
Restructurings (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of Costs Related to Restructuring Actions | The following is a summary of the restructuring charges incurred for the periods presented (in thousands): Fiscal Years 2020 2019 2018 Employee-related expenses $ 378 $ 8,084 $ 2,789 Facility-related expenses 761 11,459 3,476 Total restructuring expenses $ 1,139 $ 19,543 $ 6,265 The following is a summary of the costs incurred and remaining balances included in accrued expenses related to restructuring actions taken (in thousands): Employee-Related Expense (1) Facility-Related Expense (2) Total Balance - September 29, 2017 $ 627 $ — $ 627 Charges 2,789 3,476 6,265 Charges paid/settled (3,327) (3,476) (6,803) Balance - September 28, 2018 $ 89 $ — $ 89 Charges 8,084 11,459 19,543 Charges paid/settled (6,624) (10,481) (17,105) Balance - September 27, 2019 $ 1,549 $ 978 $ 2,527 Charges and adjustments 378 761 1,139 Charges paid/settled (1,692) (1,713) (3,405) Balance - October 2, 2020 $ 235 $ 26 $ 261 (1) Primarily includes severance charges associated with the reduction of our workforce in certain facilities. (2) Primarily includes activities associated with the closure of certain facilities, including any associated asset impairments and contract termination costs. The following is a summary of the costs incurred and remaining balances included in accrued expenses related to the 2019 Plan actions taken (in thousands): Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 6,265 5,300 11,565 Charges paid/settled (4,729) (4,843) (9,572) Balance - September 27, 2019 $ 1,536 $ 457 $ 1,993 Charges and adjustments 378 819 1,197 Charges paid/settled (1,679) (1,250) (2,929) Balance - October 2, 2020 $ 235 $ 26 $ 261 Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 338 2,190 2,528 Charges paid/settled (338) (1,739) (2,077) Balance - September 27, 2019 $ — $ 451 $ 451 Charges and adjustments — (18) (18) Charges paid/settled — (433) (433) Balance - October 2, 2020 $ — $ — $ — The following is a summary of the costs incurred and remaining balances included in accrued expenses related to the Ithaca Plan actions taken (in thousands): Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 1,481 3,969 5,450 Charges paid/settled (1,468) (3,899) (5,367) Balance - September 27, 2019 $ 13 $ 70 $ 83 Charges and adjustments — (40) (40) Charges paid/settled (13) (30) (43) Balance - October 2, 2020 $ — $ — $ — The following is a summary of the costs incurred and remaining balances included in accrued expenses related to the Long Beach, Belfast and Sydney Plan actions taken (in thousands): Employee-Related Expense Facility-Related Expense Total Balance - September 29, 2017 $ — $ — $ — Charges 2,789 3,476 6,265 Charges paid/settled (2,700) (3,476) (6,176) Balance - September 28, 2018 $ 89 $ — $ 89 Charges — — — Charges paid/settled (89) — (89) Balance - September 27, 2019 $ — $ — $ — |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Guarantees [Abstract] | |
Schedule of Product Warranty Liability Activity | Product warranty liability activity is as follows (in thousands): Fiscal Years 2020 2019 2018 Balance — beginning of year $ 3,273 $ 5,756 $ 3,672 (Divested)/acquired — — (49) Provisions (benefit) 2,271 (3,053) 1,865 (Payments) direct charges (3,686) 570 268 Balance — end of year $ 1,858 $ 3,273 $ 5,756 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Amortization Expense Related to Amortizable Intangible Assets | Amortization expense related to intangible assets is as follows (in thousands): Fiscal Years 2020 2019 2018 Cost of revenue $ 17,462 $ 29,847 $ 33,429 Selling, general and administrative 32,868 44,872 48,265 Total $ 50,330 $ 74,719 $ 81,694 |
Summary of Intangible Assets | Intangible assets consist of the following (in thousands): October 2, September 27, Acquired technology $ 179,434 $ 179,682 Customer relationships 245,870 245,870 Trade name, indefinite lived 3,400 3,400 Total 428,704 428,952 Less accumulated amortization (297,806) (247,724) Intangible assets — net $ 130,898 $ 181,228 |
Summary of Estimated Amortization of Intangible Assets in Future Fiscal Years | As of October 2, 2020, our estimated amortization of our intangible assets in future fiscal years, was as follows (in thousands): 2021 2022 2023 2024 2025 Thereafter Amortization expense $ 46,213 33,433 26,048 15,410 3,489 2,905 |
Summary of Activity in Intangible Assets and Goodwill | A summary of the activity in intangible assets and goodwill follows (in thousands): Gross Intangible Assets Total Intangibles Acquired Customer Trade Name Total Goodwill Balance as of September 28, 2018 $ 773,307 $ 251,673 $ 518,234 $ 3,400 $ 314,076 Currency translation adjustments 270 270 — — 651 Impairments of intangible assets (344,625) (72,261) (272,364) — — Balance as of September 27, 2019 428,952 179,682 245,870 3,400 314,727 Currency translation adjustments — — — — 285 Disposals of intangible assets (248) (248) — — — Balance as of October 2, 2020 $ 428,704 $ 179,434 $ 245,870 $ 3,400 $ 315,012 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities are as follows (in thousands): October 2, September 27, Deferred tax assets: Net operating loss and credit carryforward $ 278,418 $ 263,199 Intangible assets 15,880 9,887 Property and equipment 3,274 — Accrued expenses 14,564 16,149 Minority equity investments 1,010 784 Lease obligations 12,732 — Interest 5,471 7,170 Gross deferred tax asset 331,349 297,189 Less valuation allowance (277,442) (252,536) Deferred tax asset, net of valuation allowance $ 53,907 $ 44,653 Deferred tax liabilities: Property and equipment $ — $ (1,473) Right of use lease asset $ (14,057) $ — Deferred tax liabilities $ (14,057) $ (1,473) Net deferred tax asset $ 39,850 $ 43,180 |
Summary of Domestic and Foreign Income (Loss) from Continuing Operations Before Taxes | The domestic and foreign (loss) income from continuing operations before taxes were as follows (in thousands): Fiscal Years 2020 2019 2018 United States $ (65,915) $ (458,617) $ (145,851) Foreign 24,353 35,464 (9,384) (Loss) income from operations before income taxes $ (41,562) $ (423,153) $ (155,235) |
Components of Provision (Benefit) for Income Taxes | The components of the provision (benefit) for income taxes are as follows (in thousands): Fiscal Years 2020 2019 2018 Current: Federal $ (834) $ 70 $ (6,876) State 48 36 (160) Foreign 1,958 876 1,642 Current provision (benefit) 1,172 982 (5,394) Deferred: Federal (8,635) (21,560) 75,428 State (22,613) 12,907 (15,526) Foreign 9,686 (41,108) (24,652) Change in valuation allowance 24,906 9,424 (51,329) Deferred provision (benefit) 3,344 (40,337) (16,079) Total provision (benefit) $ 4,516 $ (39,355) $ (21,473) |
Reconciliation of Effective Tax Rates | Our effective tax rates differ from the federal and statutory rate as follows: Fiscal Years 2020 2019 2018 Federal statutory rate 21.0% 21.0% 24.5% Change in valuation allowance (60.5) (2.4) 34.0 Provision to return adjustments 25.4 0.3 8.3 Research and development credits 20.7 1.4 9.0 Global Intangible Low Taxed Income (11.4) (2.9) — Foreign rate differential 9.1 1.6 5.1 Warrant liability (6.5) — 4.4 Intra-entity license transfer (4.6) 9.4 — Nondeductible compensation expense (4.1) (0.6) 1.4 State taxes net of federal benefit 0.9 0.9 0.8 Section 382 adjustment — (19.3) — Nondeductible legal fees — — 0.9 2017 tax reform — — (73.7) Other permanent differences (0.9) (0.1) (0.9) Effective income tax rate (10.9)% 9.3% 13.8% |
Summary of Fiscal Tax Years Examination by Jurisdictions | A summary of the fiscal tax years that remain subject to examination, as of October 2, 2020, for the Company’s significant tax jurisdictions are: Jurisdiction Tax Years Subject to Examination United States—federal 2018 - forward United States—various states 2016 - forward Ireland 2016 - forward |
Share - Based Compensation Pl_2
Share - Based Compensation Plans (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Effects of Stock-Based Compensation Expense Related to Stock-Based Awards to Employees and Nonemployees | The following table shows a summary of share-based compensation expense included in the Consolidated Statements of Operations during the periods presented (in thousands): Fiscal Years 2020 2019 2018 Cost of revenue $ 3,609 $ 2,936 $ 3,869 Research and development 12,794 8,551 13,448 Selling, general and administrative 19,271 12,305 14,620 Total $ 35,674 $ 23,792 $ 31,937 |
Summary of Stock Option Activity | A summary of stock option activity for fiscal year 2020 is as follows (in thousands, except per share amounts and contractual term): Number of Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Options outstanding - September 27, 2019 376 $ 13.58 Granted — — Exercised (51) 3.70 Forfeited, canceled or expired — — Options outstanding - October 2, 2020 325 $ 15.12 6.99 $ 6,071 Options vested and expected to vest - October 2, 2020 325 $ 15.12 6.99 $ 6,071 Options exercisable - October 2, 2020 40 $ 17.50 3.57 $ 652 |
Weighted Average Assumptions used for Calculating Fair Value of Stock Options Granted | The weighted average Monte Carlo input assumptions used for calculating the fair value of these market-based stock options are as follows: Fiscal Years 2019 2018 Risk-free interest rate 2.8 % 2.3 % Expected term (years) 3.9 3.4 Expected volatility 51.9 % 45.8 % Target price $53.87 $98.99 Fiscal Year 2019 Risk free interest rate 1.9 % Years to maturity 3.33 Expected volatility rate 61.5 % Dividend yield — |
Summary of Restricted Stock Awards and Unit Activity | A summary of restricted stock awards and units activity for fiscal year 2020 is as follows (in thousands): Number of Shares Weighted-Average Grant Date Fair Value Issued and unvested - September 27, 2019 2,615 $ 21.81 Granted 1,210 22.07 Vested (648) 26.24 Forfeited, canceled or expired (389) 22.18 Issued and unvested - October 2, 2020 2,788 20.84 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Operating Results Related to Divested Businesses | The accompanying Consolidated Statements of Operations includes the following operating results related to these discontinued operations (in thousands): Fiscal Year 2018 Revenue $ — Cost of revenue (596) Gross profit (loss) 596 Operating expenses: Research and development 5,251 Selling, general and administrative 1,560 Total operating expenses 6,811 Loss from discontinued operations (6,215) Loss income before income taxes (6,215) Income tax provision (benefit) — Loss income from discontinued operations (6,215) Cash flow used in Operating Activities (10,734) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Earnings Per Share [Abstract] | |
Computation for Basic and Diluted Net Income (Loss) Per Share of Common Stock | The following table set forth the computation for basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Fiscal Years 2020 2019 2018 Numerator: Loss from continuing operations $ (46,078) $ (383,798) $ (133,762) Loss from discontinued operations — — (6,215) Net loss (46,078) (383,798) (139,977) Warrant liability gain — — (27,646) Net loss attributable to common stockholders $ (46,078) $ (383,798) $ (167,623) Denominator: Weighted average common shares outstanding-basic 66,606 65,686 64,741 Dilutive effect of warrants — — 570 Weighted average common shares outstanding-diluted 66,606 65,686 65,311 Common stock earnings per share-basic: Continuing operations $ (0.69) $ (5.84) $ (2.07) Discontinued operations — — (0.10) Net common stock earnings per share-basic $ (0.69) $ (5.84) $ (2.16) Common stock earnings per share-diluted: Continuing operations $ (0.69) $ (5.84) $ (2.47) Discontinued operations — — (0.10) Net common stock earnings per share-diluted $ (0.69) $ (5.84) $ (2.57) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Income, Net of Income Taxes | The components of accumulated other comprehensive income (loss), net of income taxes, are as follows (in thousands): Foreign Currency Items Other Items Total Balance - September 28, 2018 $ 2,637 $ (449) $ 2,188 Foreign currency translation loss, net of tax 1,693 — 1,693 Unrealized loss on short-term investments, net of tax — 477 477 Balance - September 27, 2019 4,330 28 4,358 Foreign currency translation gain, net of tax 458 — 458 Unrealized gain on short-term investments, net of tax — 193 193 Balance as of October 2, 2020 $ 4,788 $ 221 $ 5,009 |
Geographic and Significant Cu_2
Geographic and Significant Customer Information (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Segment Reporting [Abstract] | |
Summary of Different Geographic Regions | Information regarding net property and equipment in different geographic regions is presented below (in thousands): As of October 2, September 27, Net Property and Equipment by Geographic Region United States $ 99,118 $ 116,037 Europe (1) 13,129 7,377 Other Countries (2) 6,619 9,233 Total $ 118,866 $ 132,647 (1) Europe represents Finland, France, Germany, Ireland and Italy. (2) Other than the United States and Europe, no country or region represented greater than 10% of the total net property and equipment as of the dates presented. |
Summary of Customer Concentrations as Percentage of Total Sales and Accounts Receivable | The following is a summary of customer concentrations as a percentage of total sales and accounts receivable as of and for the periods presented: Fiscal Years Revenue 2020 2019 2018 Customer A 14 % 16 % 13 % Customer B 12 % — — Customer C 12 % — — October 2, September 27, Accounts Receivable Customer A 20 % 24 % Customer D 8 % 10 % |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | QUARTERLY FINANCIAL DATA (UNAUDITED) (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Fiscal Year 2020 Revenue $ 119,097 $ 126,424 $ 137,267 $ 147,249 $ 530,037 Gross profit $ 58,204 $ 63,370 $ 70,876 $ 77,716 $ 270,166 Net (loss) income $ (28,362) $ (10,226) $ (24,982) $ 17,492 $ (46,078) Per share data (1) (2) Net (loss) income, basic $ (0.43) $ (0.15) $ (0.37) $ 0.26 $ (0.69) Net (loss) income, diluted $ (0.43) $ (0.28) $ (0.37) $ 0.22 $ (0.69) Fiscal Year 2019 Revenue $ 150,689 $ 128,465 $ 108,306 $ 112,248 $ 499,708 Gross profit $ 76,625 $ 57,330 $ 33,828 $ 52,925 $ 220,708 Net (loss) income $ (23,396) $ (46,204) $ (324,714) $ 10,516 $ (383,798) Per share data (1) (2) Net (loss) income, basic $ (0.36) $ (0.71) $ (4.93) $ 0.16 $ (5.84) Net (loss) income, diluted $ (0.44) $ (0.71) $ (4.95) $ 0.16 $ (5.84) (1) Earnings per share calculations for each of the quarters are based on the weighted average number of shares outstanding and included common stock equivalents in each period. Therefore, the sums of the quarters do not necessarily equal the full year earnings per share. (2) Diluted loss per share for the fiscal second and fourth quarters of 2020, and the fiscal first and third quarters of 2019 excluded $8.6 million, $2.0 million , $5.5 million and $1.9 million , respectively, related to warrant liability gains. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020USD ($)marketsegment | Sep. 27, 2019USD ($) | Sep. 28, 2019USD ($) | |
Description Of Business And Basis Of Presentation [Line Items] | |||
Number of reportable operating segments | segment | 1 | ||
Number of primary markets | market | 3 | ||
Operating lease liability | $ 39,438 | ||
Operating lease right of use asset | 33,307 | ||
Operating Lease and Finance Lease, Right-Of-Use Asset | 66,434 | $ 40,442 | |
Operating Lease and Finance Lease, Liability | 69,800 | 30,590 | |
Finance Lease, Right-of-Use Asset | 33,127 | ||
Finance Lease, Liability | $ 30,362 | ||
Minimum | |||
Description Of Business And Basis Of Presentation [Line Items] | |||
Definite-lived intangible asset useful life | 5 years | ||
Maximum | |||
Description Of Business And Basis Of Presentation [Line Items] | |||
Definite-lived intangible asset useful life | 14 years | ||
Accounting Standards Update 2016-02 | |||
Description Of Business And Basis Of Presentation [Line Items] | |||
Operating lease liability | $ 43,600 | ||
Operating lease right of use asset | 37,700 | ||
Operating Lease and Finance Lease, Right-Of-Use Asset | 37,100 | ||
Operating Lease and Finance Lease, Liability | 39,000 | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 1,900 | ||
Other Liabilities | 5,900 | ||
Finance Lease, Right-of-Use Asset | 35,700 | ||
Finance Lease, Liability | $ 31,800 | ||
Disposal Group, Not Discontinued Operations | LR4 | |||
Description Of Business And Basis Of Presentation [Line Items] | |||
Gain (loss) on disposal | $ 34,300 |
Summary of Significant Accoun_5
Summary of Significant Accounting policies - Schedule of Estimated Useful Life (Detail) | 12 Months Ended |
Oct. 02, 2020 | |
Minimum | Buildings and improvements | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 20 years |
Minimum | Computer equipment and software | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 2 years |
Minimum | Furniture and fixtures | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 7 years |
Minimum | Machinery and equipment | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 2 years |
Maximum | Buildings and improvements | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 40 years |
Maximum | Computer equipment and software | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 5 years |
Maximum | Furniture and fixtures | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 10 years |
Maximum | Machinery and equipment | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 7 years |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 02, 2020 | Jul. 03, 2020 | Apr. 03, 2020 | Jan. 03, 2020 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 147,249 | $ 137,267 | $ 126,424 | $ 119,097 | $ 112,248 | $ 108,306 | $ 128,465 | $ 150,689 | $ 530,037 | $ 499,708 | $ 570,398 |
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 217,474 | 239,510 | 272,951 | ||||||||
China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 192,989 | 132,329 | 159,763 | ||||||||
Asia Pacific, excluding China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 84,997 | 80,136 | 79,581 | ||||||||
Other Countries | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 34,577 | 47,733 | 58,103 | ||||||||
Telecom | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 209,477 | 180,938 | 222,940 | ||||||||
Industrial & Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 194,506 | 204,638 | 185,360 | ||||||||
Data Center | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 126,054 | $ 114,132 | $ 162,098 |
Revenue - Contract Liabilities
Revenue - Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 9,861 | $ 10,653 |
$ Change | $ (792) | |
% Change | (7.00%) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer long-term liability | $ 3.5 | $ 8.5 |
Contract with customer, liability, revenue recognized | $ 1.9 | $ 7.6 |
Investments - Summary of Availa
Investments - Summary of Available for Sale Investments (Detail) - USD ($) | Oct. 02, 2020 | Sep. 27, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 203,518,000 | $ 101,224,000 |
Gross Unrealized Holding Gains | 540,000 | 113,000 |
Gross Unrealized Holding Losses | (347,000) | (111,000) |
Aggregate Fair Value | 203,711,000 | 101,226,000 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 68,605,000 | 29,578,000 |
Gross Unrealized Holding Gains | 348,000 | 112,000 |
Gross Unrealized Holding Losses | (333,000) | (93,000) |
Aggregate Fair Value | 68,620,000 | 29,597,000 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 134,913,000 | 71,646,000 |
Gross Unrealized Holding Gains | 192,000 | 1,000 |
Gross Unrealized Holding Losses | (14,000) | (18,000) |
Aggregate Fair Value | $ 135,091,000 | $ 71,629,000 |
Investments - Summary of Contra
Investments - Summary of Contractual Maturities of Investments (Detail) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than 1 year | $ 138,612 | |
Over 1 year | 65,099 | |
Total investments | $ 203,711 | $ 101,226 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020USD ($)investment | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sales and maturities of short-term investments | $ 183,874 | $ 173,020 | $ 100,375 |
Number of equity investments | investment | 2 | ||
Loss on and impairment of minority equity investments | $ 5,867 | 7,481 | 10,406 |
Cost-method Investments, Other than Temporary Impairment | 2,500 | ||
Gain (Loss) on Sale of Previously Unissued Stock by Subsidiary or Equity Investee, Nonoperating Income | (16,600) | (10,800) | |
Preferred Stock | Privately Held Manufacturing Company | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investments | 5,000 | ||
Cost Method Investments | $ 2,500 | ||
Equity Securities | Non-controlling Interest | |||
Debt Securities, Available-for-sale [Line Items] | |||
Minority investment (as a percent) | 20.00% | ||
Equity Securities | Compute | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investments | $ 36,500 | ||
Initial value | 36,500 | ||
Loss on and impairment of minority equity investments | 3,400 | 7,500 | $ 10,400 |
Carrying value | $ 15,200 | $ 18,600 | |
Equity Securities | Compute | Non-controlling Interest | |||
Debt Securities, Available-for-sale [Line Items] | |||
Minority investment (as a percent) | 20.00% |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Contingent consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 0 | $ 585 | $ 1,679 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 65 | (394) | ||
Purchases and Issuances | 0 | 0 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Sales And Settlement | (650) | (700) | ||
Warrant liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 25,312 | 12,364 | 13,129 | $ 40,775 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 12,948 | (765) | (27,646) | |
Purchases and Issuances | 0 | 0 | 0 | |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liability Sales And Settlement | 0 | 0 | $ 0 | |
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 223,850 | 101,487 | ||
Total liabilities measured at fair value | 25,312 | 12,364 | ||
Fair Value, Measurements, Recurring | Warrant liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities measured at fair value | 25,312 | 12,364 | ||
Fair Value, Measurements, Recurring | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 68,620 | 29,597 | ||
Fair Value, Measurements, Recurring | Money market funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 20,139 | 261 | ||
Fair Value, Measurements, Recurring | Commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 135,091 | 71,629 | ||
Fair Value, Measurements, Recurring | Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 20,139 | 261 | ||
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Active Markets for Identical Assets (Level 1) | Warrant liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Active Markets for Identical Assets (Level 1) | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Active Markets for Identical Assets (Level 1) | Money market funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 20,139 | 261 | ||
Fair Value, Measurements, Recurring | Active Markets for Identical Assets (Level 1) | Commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 203,711 | 101,226 | ||
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Observable Inputs (Level 2) | Warrant liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Observable Inputs (Level 2) | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 68,620 | 29,597 | ||
Fair Value, Measurements, Recurring | Observable Inputs (Level 2) | Money market funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Observable Inputs (Level 2) | Commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 135,091 | 71,629 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 0 | 0 | ||
Total liabilities measured at fair value | 25,312 | 12,364 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Warrant liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total liabilities measured at fair value | 25,312 | 12,364 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Money market funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value | $ 0 | $ 0 |
Fair Value - Quantitative Infor
Fair Value - Quantitative Information Used in Fair Value Calculation of Level 3 Liabilities (Details) - Black-Scholes model - Warrant liability | Oct. 02, 2020$ / shares | Sep. 27, 2019$ / shares |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Warrant liability term | 2 months 12 days | 1 year 2 months 12 days |
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Share price (in USD per share) | $ 33.80 | $ 21.68 |
Volatility | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Warrants and Rights Outstanding, Measurement Input | 0.618 | 0.614 |
Discount rate | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Warrants and Rights Outstanding, Measurement Input | 0.0009 | 0.0171 |
Exercise price | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Warrants and Rights Outstanding, Measurement Input | 14.05 | 14.05 |
Dividend rate | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Warrants and Rights Outstanding, Measurement Input | 0 | 0 |
Fair Value - Changes in Assets
Fair Value - Changes in Assets and Liabilities with Inputs Classified within Level 3 of Fair Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Warrant liability | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 12,364 | $ 13,129 | $ 40,775 |
Net Realized/Unrealized Losses (Gains) Included in Earnings | 12,948 | (765) | (27,646) |
Purchases and Issuances | 0 | 0 | 0 |
Sales and Settlements | 0 | 0 | 0 |
Ending balance | 25,312 | 12,364 | 13,129 |
Contingent consideration | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 0 | 585 | 1,679 |
Net Realized/Unrealized Losses (Gains) Included in Earnings | 65 | (394) | |
Purchases and Issuances | 0 | 0 | |
Sales and Settlements | (650) | (700) | |
Ending balance | $ 0 | $ 585 |
Accounts Receivables Allowanc_3
Accounts Receivables Allowances- Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance - beginning of year | $ 5,047 | $ 6,795 | $ 9,410 |
Provision, net | 10,774 | 11,989 | 15,465 |
Charge-offs | (12,928) | (13,737) | (18,080) |
Balance - end of year | 2,893 | 5,047 | 6,795 |
Compensation Credits and Customer Returns Allowance | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance - beginning of year | 4,500 | 6,300 | |
Balance - end of year | $ 2,800 | $ 4,500 | $ 6,300 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 46,954 | $ 59,184 |
Work-in-process | 9,324 | 13,799 |
Finished goods | 35,306 | 34,897 |
Total | $ 91,584 | $ 107,880 |
Property Plant and Equipment -
Property Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 284,716 | $ 281,834 |
Less accumulated depreciation and amortization | (165,850) | (149,187) |
Property and equipment — net | 118,866 | 132,647 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 16,174 | 24,848 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 191,953 | 175,696 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 19,854 | 12,962 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,659 | 3,716 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 18,487 | 18,116 |
Capital lease and financed assets | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 0 | 46,496 |
Less accumulated depreciation and amortization | (2,500) | (5,300) |
Finance lease assets | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 35,589 | $ 0 |
Property Plant and Equipment _2
Property Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 28,500 | $ 29,700 | $ 30,700 |
Accumulated depreciation | 165,850 | 149,187 | |
Capital lease and financed assets | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $ 2,500 | $ 5,300 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 700,000,000 | |
Unamortized deferred financing costs | 5,100,000 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 300,000 | |
Term Loans | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | 4,825,000 | $ 7,400,000 |
Quarterly principal installments | $ 1,700,000 | |
Maximum period for reinvestment of business divestiture proceeds | 18 months | |
Maximum period for completion of reinvestment of business divestiture proceeds | 6 months | |
Estimated fair value of term loans | $ 649,400,000 | |
Term Loans | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Term Loans | Federal Funds Effective Swap Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Term Loans | One Month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Term Loans | Minimum | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Credit Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 160,000,000 | |
Remaining borrowing capacity | 160,000,000 | |
Debt instrument, maximum borrowing threshold | $ 50,000,000 |
Debt Debt - Schedule of Long-Te
Debt Debt - Schedule of Long-Term Debt Instruments (Details) - Term Loans - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
Debt Instrument [Line Items] | ||
Principal balance | $ 666,087 | $ 672,971 |
Line of credit effective interest rate | 2.40% | |
London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.15% | |
Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% |
Debt - Schedule of Remained Out
Debt - Schedule of Remained Outstanding on Term Loans (Detail) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | $ (5,100) | |
Current portion | 6,885 | $ 6,885 |
Long-term, less current portion | 652,172 | 655,272 |
Term Loans | ||
Debt Instrument [Line Items] | ||
Principal balance | 666,087 | 672,971 |
Unamortized discount | (2,205) | (3,414) |
Unamortized deferred financing costs | (4,825) | (7,400) |
Total term loans | 659,057 | 662,157 |
Current portion | 6,885 | 6,885 |
Long-term, less current portion | $ 652,172 | $ 655,272 |
Debt - Schedule of Minimum Prin
Debt - Schedule of Minimum Principal Payments under Term Loans (Detail) - Term Loans - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Debt Instrument [Line Items] | ||
2021 | $ 6,885 | |
2022 | 6,885 | |
2023 | 6,885 | |
2024 | 645,432 | |
Total | $ 666,087 | $ 672,971 |
Lease Narrative (Details)
Lease Narrative (Details) | 12 Months Ended |
Oct. 02, 2020renewal_option | |
Leases [Abstract] | |
Number of renewal options | 2 |
Renewal term | 10 years |
Leases Assets and Liabilities o
Leases Assets and Liabilities of Lessee (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
ASSETS | ||
Operating lease right of use asset | $ 33,307 | |
Finance Lease, Right-of-Use Asset | 33,127 | |
Capital Leased Assets, Gross | $ 40,442 | |
Operating Lease and Finance Lease, Right-Of-Use Asset | 66,434 | 40,442 |
Current liabilities: | ||
Current portion of operating leases | 7,601 | 0 |
Finance Lease, Liability, Current | 1,368 | 1,084 |
Operating Lease, Liability, Noncurrent | 31,837 | |
Finance Lease, Liability, Noncurrent | 28,994 | 29,506 |
Operating Lease and Finance Lease, Liability | $ 69,800 | $ 30,590 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiability | us-gaap:OperatingLeaseLiability |
Leases Weighted-average Lease T
Leases Weighted-average Lease Term and Discount Rate (Details) | Oct. 02, 2020 |
Weighted-average Remaining Lease Term [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 4 months 24 days |
Finance Lease, Weighted Average Remaining Lease Term | 17 years |
Weighted-average discount rate [Abstract] | |
Operating Lease, Weighted Average Discount Rate, Percent | 6.20% |
Finance Lease, Weighted Average Discount Rate, Percent | 6.70% |
Leases Lease Cost (Details)
Leases Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Leases [Abstract] | |||
Finance Lease, Right-of-Use Asset, Amortization | $ 3,022 | ||
Finance Lease, Interest Expense | 2,155 | ||
Lease, Cost | 5,177 | ||
Operating Lease, Cost | 9,815 | ||
Variable Lease, Cost | 2,645 | ||
Short-term Lease, Cost | 368 | ||
Sublease Income | $ (592) | ||
Operating Leases, Rent Expense | $ 9,700 | $ 9,500 |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Oct. 02, 2020USD ($) | |
Cash paid for amounts included in measurement of lease liabilities: | |
Operating Lease, Payments | $ 9,562 |
Finance Lease, Interest Payment on Liability | 2,155 |
Finance Lease, Principal Payments | 1,708 |
Non-cash activities: | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 3,788 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 586 |
Leases Lease Maturity Under Top
Leases Lease Maturity Under Topic 842 (Details) $ in Thousands | Oct. 02, 2020USD ($) |
Operating Leases | |
lessee, operating lease, liability, payments due, current | $ 9,771 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 8,359 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 6,661 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 6,228 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 4,315 |
Lessee, Operating Lease, Liability, Payments, Due After Year FIve | 12,784 |
Lessee, Operating Lease, Liability, Payments, Due | 48,118 |
Less: interest | (8,680) |
Operating lease liability | 39,438 |
Finance Leases | |
Lessee, Finance Lease, Liability, Payments Due, Current | 3,347 |
Finance Lease, Liability, Payments, Due Year Two | 2,836 |
Finance Lease, Liability, Payments, Due Year Three | 2,820 |
Finance Lease, Liability, Payments, Due Year Four | 2,856 |
Finance Lease, Liability, Payments, Due Year Five | 2,783 |
Lessee, Finance Lease, Liability, Payments, Due After Year FIve | 37,150 |
Finance Lease, Liability, Payment, Due | 51,792 |
Finance Lease, Liability, Undiscounted Excess Amount | (21,430) |
Finance Lease, Liability | $ 30,362 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments Under Topic 840 (Details) $ in Thousands | Sep. 27, 2019USD ($) |
Operating Leases | |
2020 | $ 9,987 |
2021 | 9,233 |
2022 | 7,447 |
2023 | 6,061 |
2024 | 5,564 |
Thereafter | 16,437 |
Total future minimum lease payments | 54,729 |
Capital Leases | |
2020 | 3,299 |
2021 | 3,343 |
2022 | 2,884 |
2023 | 2,816 |
2024 | 2,853 |
Thereafter | 39,927 |
Total lease payments | 55,122 |
Less amount representing interest | (26,241) |
Present value of lease liabilities | $ 28,881 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Domestic Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 2.3 | $ 2.6 | |
Foreign Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1 | $ 1.1 | $ 1.2 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Compensation and benefits | $ 32,254 | $ 20,455 |
Distribution costs | 8,889 | 7,797 |
Deferred revenue | 6,346 | 2,137 |
Product warranty | 1,858 | 3,273 |
Restructuring costs | 261 | 2,527 |
Professional fees | 1,300 | 1,554 |
Rent and utilities | 589 | 701 |
Income taxes payable | 734 | 1,233 |
Current portion of operating leases | 7,601 | 0 |
Other | 3,822 | 2,368 |
Total accrued liabilities | $ 63,654 | $ 42,045 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 27, 2019 | Oct. 02, 2020 |
Long-term Purchase Commitment [Line Items] | ||
Asset retirement obligation in other long-term liabilities | $ 1.8 | $ 1.9 |
Long-term purchase commitment | 33.8 | |
Purchase Commitment | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term purchase commitment | $ 27 |
Restructurings- Additional Deta
Restructurings- Additional Details (Details) | 3 Months Ended | 12 Months Ended | ||
Jul. 03, 2020employeefacility | Oct. 02, 2020USD ($) | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | $ 1,139,000 | $ 19,543,000 | $ 6,265,000 | |
Employee related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 378,000 | 8,084,000 | 2,789,000 | |
Facility related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 761,000 | 11,459,000 | 3,476,000 | |
2019 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of positions eliminated | employee | 250 | |||
Number of facilities | facility | 6 | |||
Restructuring cost | 1,197,000 | 11,565,000 | ||
2019 Restructuring Plan | Employee related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 378,000 | 6,265,000 | ||
2019 Restructuring Plan | Facility related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 819,000 | 5,300,000 | ||
2019 Restructuring Plan | Fixed Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 4,000,000 | |||
2019 Restructuring Plan | Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 1,300,000 | |||
Design Facility Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 18,000 | 2,528,000 | ||
Design Facility Restructuring Plan | Employee related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 0 | 338,000 | ||
Design Facility Restructuring Plan | Facility related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 18,000 | 2,190,000 | ||
Ithaca Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 40,000 | 5,450,000 | ||
Ithaca Restructuring Plan | Employee related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 0 | 1,481,000 | ||
Ithaca Restructuring Plan | Facility related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 40,000 | 3,969,000 | ||
Long Beach, Belfast and Sydney Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 0 | 6,265,000 | 6,300,000 | |
Long Beach, Belfast and Sydney Restructuring Plan | Employee related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 0 | 2,789,000 | 2,800,000 | |
Long Beach, Belfast and Sydney Restructuring Plan | Facility related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | $ 0 | $ 3,476,000 | $ 3,500,000 |
Restructurings - Summary of Cos
Restructurings - Summary of Costs Related to Restructuring Actions (Detail) - USD ($) | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 2,527,000 | $ 89,000 | $ 627,000 |
Restructuring cost | 1,139,000 | 19,543,000 | 6,265,000 |
Charges paid/settled | (3,405,000) | (17,105,000) | (6,803,000) |
Ending balance | 261,000 | 2,527,000 | 89,000 |
2019 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1,993,000 | 0 | |
Restructuring cost | 1,197,000 | 11,565,000 | |
Charges paid/settled | (2,929,000) | (9,572,000) | |
Ending balance | 261,000 | 1,993,000 | 0 |
Design Facility Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 451,000 | 0 | |
Restructuring cost | 18,000 | 2,528,000 | |
Charges paid/settled | (433,000) | (2,077,000) | |
Ending balance | 0 | 451,000 | 0 |
Ithaca Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 83,000 | 0 | |
Restructuring cost | 40,000 | 5,450,000 | |
Charges paid/settled | (43,000) | (5,367,000) | |
Ending balance | 0 | 83,000 | 0 |
Long Beach, Belfast and Sydney Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 89,000 | 0 | |
Restructuring cost | 0 | 6,265,000 | 6,300,000 |
Charges paid/settled | (89,000) | (6,176,000) | |
Ending balance | 0 | 89,000 | 0 |
Employee related costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1,549,000 | 89,000 | 627,000 |
Restructuring cost | 378,000 | 8,084,000 | 2,789,000 |
Charges paid/settled | (1,692,000) | (6,624,000) | (3,327,000) |
Ending balance | 235,000 | 1,549,000 | 89,000 |
Employee related costs | 2019 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1,536,000 | 0 | |
Restructuring cost | 378,000 | 6,265,000 | |
Charges paid/settled | (1,679,000) | (4,729,000) | |
Ending balance | 235,000 | 1,536,000 | 0 |
Employee related costs | Design Facility Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Restructuring cost | 0 | 338,000 | |
Charges paid/settled | 0 | (338,000) | |
Ending balance | 0 | 0 | 0 |
Employee related costs | Ithaca Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 13,000 | 0 | |
Restructuring cost | 0 | 1,481,000 | |
Charges paid/settled | (13,000) | (1,468,000) | |
Ending balance | 0 | 13,000 | 0 |
Employee related costs | Long Beach, Belfast and Sydney Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 89,000 | 0 | |
Restructuring cost | 0 | 2,789,000 | 2,800,000 |
Charges paid/settled | (89,000) | (2,700,000) | |
Ending balance | 0 | 89,000 | 0 |
Facility related expenses | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 978,000 | 0 | 0 |
Restructuring cost | 761,000 | 11,459,000 | 3,476,000 |
Charges paid/settled | (1,713,000) | (10,481,000) | (3,476,000) |
Ending balance | 26,000 | 978,000 | 0 |
Facility related expenses | 2019 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 457,000 | 0 | |
Restructuring cost | 819,000 | 5,300,000 | |
Charges paid/settled | (1,250,000) | (4,843,000) | |
Ending balance | 26,000 | 457,000 | 0 |
Facility related expenses | Design Facility Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 451,000 | 0 | |
Restructuring cost | 18,000 | 2,190,000 | |
Charges paid/settled | (433,000) | (1,739,000) | |
Ending balance | 0 | 451,000 | 0 |
Facility related expenses | Ithaca Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 70,000 | 0 | |
Restructuring cost | 40,000 | 3,969,000 | |
Charges paid/settled | (30,000) | (3,899,000) | |
Ending balance | 0 | 70,000 | 0 |
Facility related expenses | Long Beach, Belfast and Sydney Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Restructuring cost | 0 | 3,476,000 | 3,500,000 |
Charges paid/settled | 0 | (3,476,000) | |
Ending balance | $ 0 | $ 0 | $ 0 |
Product Warranties - Additional
Product Warranties - Additional Information (Detail) | 12 Months Ended |
Oct. 02, 2020 | |
Guarantees [Abstract] | |
Term of product warranties | 12 months |
Product Warranties - Schedule o
Product Warranties - Schedule of Product Warranty Liability Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance — beginning of year | $ 3,273 | $ 5,756 | $ 3,672 |
(Divested)/acquired | 0 | 0 | (49) |
Provisions (benefit) | 2,271 | (3,053) | 1,865 |
(Payments) direct charges | (3,686) | 570 | 268 |
Balance — end of year | $ 1,858 | $ 3,273 | $ 5,756 |
Intangible Assets - Summary of
Intangible Assets - Summary of Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total | $ 50,330 | $ 74,719 | $ 81,694 |
Cost of revenue | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | 17,462 | 29,847 | 33,429 |
Selling, general and administrative | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | $ 32,868 | $ 44,872 | $ 48,265 |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 428,704 | $ 428,952 |
Less accumulated amortization | (297,806) | (247,724) |
Intangible assets — net | 130,898 | 181,228 |
Trade name, indefinite lived | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 3,400 | 3,400 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 179,434 | 179,682 |
Less accumulated amortization | (152,100) | (134,800) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 245,870 | 245,870 |
Less accumulated amortization | $ (145,700) | $ (112,900) |
Intangible Assets - Summary o_3
Intangible Assets - Summary of Estimated Amortization of Intangible Assets (Detail) $ in Thousands | Oct. 02, 2020USD ($) |
Amortization expense | |
2021 | $ 46,213 |
2022 | 33,433 |
2023 | 26,048 |
2024 | 15,410 |
2025 | 3,489 |
Thereafter | $ 2,905 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ 297,806 | $ 247,724 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | 152,100 | 134,800 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ 145,700 | $ 112,900 |
Intangible Assets - Summary o_4
Intangible Assets - Summary of Activity in Intangible Assets and Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 428,952 | $ 773,307 |
Currency translation adjustments | 0 | 270 |
Impairments of intangible assets | (248) | (344,625) |
Ending balance | 428,704 | 428,952 |
Trade name, indefinite lived | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 3,400 | 3,400 |
Currency translation adjustments | 0 | 0 |
Impairments of intangible assets | 0 | 0 |
Ending balance | 3,400 | 3,400 |
Total Goodwill | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 314,727 | 314,076 |
Currency translation adjustments | 285 | 651 |
Impairments of intangible assets | 0 | 0 |
Ending balance | 315,012 | 314,727 |
Developed technology | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 179,682 | 251,673 |
Currency translation adjustments | 0 | 270 |
Impairments of intangible assets | (248) | (72,261) |
Ending balance | 179,434 | 179,682 |
Customer relationships | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 245,870 | 518,234 |
Currency translation adjustments | 0 | 0 |
Impairments of intangible assets | 0 | (272,364) |
Ending balance | $ 245,870 | $ 245,870 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Deferred tax assets: | ||
Net operating loss and credit carryforward | $ 278,418 | $ 263,199 |
Intangible assets | 15,880 | 9,887 |
Property and equipment | 3,274 | 0 |
Accrued expenses | 14,564 | 16,149 |
Minority equity investments | 1,010 | 784 |
Lease obligations | 12,732 | 0 |
Interest | 5,471 | 7,170 |
Gross deferred tax asset | 331,349 | 297,189 |
Less valuation allowance | (277,442) | (252,536) |
Deferred tax asset, net of valuation allowance | 53,907 | 44,653 |
Deferred tax liabilities: | ||
Property and equipment | 0 | (1,473) |
Right of use lease asset | (14,057) | 0 |
Deferred tax liabilities | (14,057) | (1,473) |
Net deferred tax asset | $ 39,850 | $ 43,180 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Thousands, $ in Millions | 12 Months Ended | |||
Oct. 02, 2020USD ($) | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | Sep. 27, 2019CAD ($) | |
Income Taxes [Line Items] | ||||
Less valuation allowance | $ 277,442 | $ 252,536 | ||
Valuation allowance change | 24,906 | 9,424 | $ (51,329) | |
Income (loss) from operations before income taxes | $ (41,562) | $ (423,153) | $ (155,235) | |
Effective income tax rate | (10.90%) | 9.30% | 13.80% | |
Deferred tax asset, intra-entity transfer, asset other than inventory | $ 39,800 | |||
Foreign earnings repatriated | 156,800 | |||
Provisional undistributed accumulated earnings of foreign subsidiary | 86,700 | |||
Unrecognized tax benefits | 300 | $ 300 | $ 300 | |
Deferred Tax Asset, Net Operating Loss Carryforward | ||||
Income Taxes [Line Items] | ||||
Valuation allowance change | (1,400) | |||
CANADA | ||||
Income Taxes [Line Items] | ||||
Less valuation allowance | 8,000 | $ 19 | ||
United States | ||||
Income Taxes [Line Items] | ||||
Valuation allowance change | 24,900 | |||
Grand Cayman | ||||
Income Taxes [Line Items] | ||||
Foreign earnings repatriated | 59,700 | |||
Ireland | ||||
Income Taxes [Line Items] | ||||
Foreign earnings repatriated | 25,600 | |||
Federal | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 908,000 |
Income Taxes - Summary of Domes
Income Taxes - Summary of Domestic and Foreign Income (Loss) from Continuing Operations Before Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (65,915) | $ (458,617) | $ (145,851) |
Foreign | 24,353 | 35,464 | (9,384) |
(Loss) income from operations before income taxes | $ (41,562) | $ (423,153) | $ (155,235) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Current: | |||
Federal | $ (834) | $ 70 | $ (6,876) |
State | 48 | 36 | (160) |
Foreign | 1,958 | 876 | 1,642 |
Current provision (benefit) | 1,172 | 982 | (5,394) |
Deferred: | |||
Federal | (8,635) | (21,560) | 75,428 |
State | (22,613) | 12,907 | (15,526) |
Foreign | 9,686 | (41,108) | (24,652) |
Change in valuation allowance | 24,906 | 9,424 | (51,329) |
Deferred provision (benefit) | 3,344 | (40,337) | (16,079) |
Total provision (benefit) | $ 4,516 | $ (39,355) | $ (21,473) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rates (Detail) | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 24.50% |
Change in valuation allowance | (60.50%) | (2.40%) | 34.00% |
Provision to return adjustments | 25.40% | 0.30% | 8.30% |
Research and development credits | 20.70% | 1.40% | 9.00% |
Global Intangible Low Taxed Income | (11.40%) | (2.90%) | 0.00% |
Foreign rate differential | 9.10% | 1.60% | 5.10% |
Warrant liability | (6.50%) | 0.00% | 4.40% |
Intra-entity license transfer | (4.60%) | 9.40% | 0.00% |
Nondeductible compensation expense | (4.10%) | (0.60%) | 1.40% |
State taxes net of federal benefit | 0.90% | 0.90% | 0.80% |
Section 382 adjustment | 0.00% | (19.30%) | 0.00% |
Nondeductible legal fees | 0.00% | 0.00% | 0.90% |
2017 tax reform | 0.00% | 0.00% | (73.70%) |
Other permanent differences | (0.90%) | (0.10%) | (0.90%) |
Effective income tax rate | (10.90%) | 9.30% | 13.80% |
Income Taxes - Activity Related
Income Taxes - Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | Oct. 02, 2020 | Sep. 27, 2019 |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ (0.3) | $ (0.3) |
Ending balance | $ (0.3) | $ (0.3) |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 03, 2020shares | Oct. 02, 2020USD ($)planemployeetranche$ / sharesshares | Sep. 27, 2019USD ($)$ / sharesshares | Sep. 28, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity incentive plans | plan | 3 | |||
Number of shares available for future issuance (in shares) | 17,000,000 | |||
Compensation and benefits | $ | $ 32,254 | $ 20,455 | ||
Total fair value of restricted stock awards and units vesting | $ | 7,900 | |||
Share-based compensation expense | $ | $ 35,674 | $ 23,792 | $ 31,937 | |
Common stock, issued (in shares) | 66,921,000 | 66,177,000 | ||
Unrecognized compensation costs | $ | $ 45,300 | |||
Weighted average period for recognition of unrecognized compensation costs | 2 years 1 month 6 days | |||
Intrinsic value of options recognized | $ | $ 1,400 | $ 700 | $ 900 | |
Options granted (in shares) | 0 | |||
Unamortized compensation on share-based compensation modification | $ | $ 1,700 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Other | 147,929 | |||
Expected term (years) | 3 years | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant (in shares) | 3,600,000 | |||
Unrecognized compensation expense | $ | $ 300 | |||
Incentive Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
ISU awards outstanding (in shares) | 225,523 | 195,598 | ||
Compensation and benefits | $ | $ 7,600 | $ 2,000 | ||
Employee-related Liabilities | $ | $ 4,600 | |||
ISU awards exercised (in shares) | 62,344 | 69,035 | 68,813,000 | |
Total fair value of restricted stock awards and units vesting | $ | $ 1,900 | $ 1,200 | $ 1,400 | |
Share-based compensation expense | $ | $ 4,400 | $ 1,300 | $ 1,100 | |
Stock Options with Market-based Vesting Criteria | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award term | 7 years | |||
Weighted average period for recognition of unrecognized compensation costs | 3 years | |||
Grant date fair value of options (in USD per share) | $ / shares | $ 7.47 | $ 15.52 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 51.90% | 45.80% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.80% | 2.30% | ||
Expected term (years) | 3 years 10 months 24 days | 3 years 4 months 24 days | ||
Stock Options with Performance-based Vesting Criteria | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (in shares) | 0 | 585,000 | 325,000 | |
Options, aggregate grant date fair value | $ | $ 2,400 | $ 5,000 | ||
Cancelled options (in shares) | 1,122,500 | |||
Performance Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 748,328 | |||
Number of employees affected | employee | 13 | |||
Plan modification incremental compensation cost | $ | $ 8,200 | |||
Award requisite service period | 3 years | |||
Forfeited, canceled or expired (in shares) | 168,481 | |||
Non Qualified Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Measurement period for target price per share for recognition of remaining unamortized compensation cost | 30 days | |||
Restricted Stock Awards and Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of restricted stock awards and units vesting | $ | $ 19,100 | $ 11,700 | $ 19,700 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 648,000 | |||
Granted (in shares) | 1,210,000 | |||
Forfeited, canceled or expired (in shares) | 389,000 | |||
Granted (in USD per share) | $ / shares | $ 22.07 | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 61.50% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.90% | |||
Expected term (years) | 3 years 3 months 29 days | |||
PRSU awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of tranches | tranche | 3 | |||
Granted (in shares) | 132,668 | |||
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual increase of share available for future issuance (in shares) | 550,000 | |||
Employee Stock | Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum ESPP payroll deductions | 15.00% | |||
Common stock, issued (in shares) | 272,469 | 421,777 | 305,851 | |
Maximum percentage annual increase of share available for future issuance | 1.25% | |||
Annual increase of share available for future issuance (in shares) | 550,000 | |||
Employee Stock | 2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual increase of share available for future issuance (in shares) | 1,900,000 | |||
Employee Stock Option | 2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage annual increase of share available for future issuance | 4.00% | |||
Market Based Performance Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 200,000 | |||
Granted (in USD per share) | $ / shares | $ 17.65 | |||
Aggregate grant date fair value | $ | $ 3,500 | |||
Allocated compensation expense | $ | $ 3,500 | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award term | 4 years | |||
Minimum | PRSU awards | Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Earnings percentage of targeted shares | 0.00% | |||
Minimum | Market Based Performance Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Earnings percentage of targeted shares | 0.00% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award term | 7 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 443,787 | |||
Maximum | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Maximum | PRSU awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Earnings percentage of targeted shares | 300.00% | |||
Incremental PRSU that could vest if all performance criteria are achieved | 1,388,898 | |||
Maximum | Market Based Performance Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Earnings percentage of targeted shares | 150.00% |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Effects of Stock-Based Compensation Expense Related to Stock-Based Awards to Employees and Non-Employees (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 35,674 | $ 23,792 | $ 31,937 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 3,609 | 2,936 | 3,869 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 12,794 | 8,551 | 13,448 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 19,271 | $ 12,305 | $ 14,620 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Oct. 02, 2020USD ($)$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 376 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (51) |
Forfeited, canceled or expired (in shares) | shares | 0 |
Ending balance (in shares) | shares | 325 |
Weighted-Average Exercise Price per Share | |
Beginning balance (in USD per share) | $ / shares | $ 13.58 |
Granted (in USD per share) | $ / shares | 0 |
Exercised (in USD per share) | $ / shares | 3.70 |
Forfeited, canceled or expired (in USD per share) | $ / shares | 0 |
Ending balance (in USD per share) | $ / shares | $ 15.12 |
Options Outstanding, Additional Disclosures | |
Weighted-Average Remaining Contractual Term (in Years) | 6 years 11 months 26 days |
Aggregate Intrinsic Value | $ | $ 6,071 |
Options Vested and Expected to Vest | |
Number of shares (in shares) | shares | 325 |
Weighted-Average Exercise Price Per Share (in USD per share) | $ / shares | $ 15.12 |
Weighted-Average Remaining Contractual Term (in Years) | 6 years 11 months 26 days |
Aggregate Intrinsic Value | $ | $ 6,071 |
Options Exercisable | |
Number of Shares (in shares) | shares | 40 |
Weighted-Average Exercise Price per Share (in USD per share) | $ / shares | $ 17.50 |
Weighted-Average Remaining Contractual Term (in Years) | 3 years 6 months 25 days |
Aggregate Intrinsic Value | $ | $ 652 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Weighted Average Assumptions used for Calculating Fair Value of Stock Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 years | ||
Stock Options with Market-based Vesting Criteria | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 years 10 months 24 days | 3 years 4 months 24 days | |
Target price | $ 53.87 | $ 98.99 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 years 3 months 29 days | ||
Expected dividends | 0.00% |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Summary of Restricted Stock Awards and Units Activity (Detail) | 12 Months Ended |
Oct. 02, 2020$ / sharesshares | |
Maximum | |
Number of Shares | |
Vested (in shares) | (443,787) |
Restricted Stock Awards and Units | |
Number of Shares | |
Beginning balance- unvested (in shares) | 2,615,000 |
Granted (in shares) | 1,210,000 |
Vested (in shares) | (648,000) |
Forfeited, canceled or expired (in shares) | (389,000) |
Ending balance- unvested (in shares) | 2,788,000 |
Weighted-Average Grant Date Fair Value | |
Beginning balance- unvested (in USD per share) | $ / shares | $ 21.81 |
Granted (in USD per share) | $ / shares | 22.07 |
Vested (in USD per share) | $ / shares | 26.24 |
Forfeited, canceled or expired (in USD per share) | $ / shares | 22.18 |
Ending balance- unvested (in USD per share) | $ / shares | $ 20.84 |
RSUs | Maximum | |
Weighted-Average Grant Date Fair Value | |
Award vesting period | 4 years |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | 13 Months Ended | |||
Nov. 11, 2020 | Oct. 02, 2020 | Sep. 27, 2019 | Mar. 31, 2012 | |
Class of Warrant or Right [Line Items] | ||||
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 | ||
Preferred stock, par value (in USD per share) | $ 0.001 | $ 0.001 | ||
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 | ||
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | ||
Common stock, subject to forfeiture (in shares) | 5,414 | 0 | ||
Common stock warrants price per share (in USD per share) | $ 14.05 | |||
Subsequent Event | ||||
Class of Warrant or Right [Line Items] | ||||
Conversion of shares issued (in shares) | 850,311 | |||
Number of warrants (in shares) | 1,270,679 | |||
Common Stock | ||||
Class of Warrant or Right [Line Items] | ||||
Common stock warrants (in shares) | 1,281,358 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
Mission Microwave | ||
Related Party Transaction [Line Items] | ||
Expenses from transactions with related party | $ 0.4 | |
Dark Trace | ||
Related Party Transaction [Line Items] | ||
Expenses from transactions with related party | 0.1 | $ 0.1 |
Cadence | Public Company with a Common Director | ||
Related Party Transaction [Line Items] | ||
Expenses from transactions with related party | $ 4.1 |
Discontinued Operations - Dives
Discontinued Operations - Divested Business (Details) - LR4 - Disposal Group, Not Discontinued Operations - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2019 | Oct. 02, 2020 | Nov. 27, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (loss) on disposal | $ 34.3 | ||
Cash consideration on sale of business | $ 17.2 | ||
Disposal Group, Including Discontinued Operation, Total Consideration Received | $ 13.2 | ||
Disposal Group, Including Discontinued Operation, Total Consideration Received, Investing | $ 11 |
Discontinued Operations - Disco
Discontinued Operations - Discontinued Operations (Detail) - Equity Securities $ in Millions | Oct. 02, 2020USD ($) |
Non-controlling Interest | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Minority investment (as a percent) | 20.00% |
Compute | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Investments | $ 36.5 |
Compute | Non-controlling Interest | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Minority investment (as a percent) | 20.00% |
Discontinued Operations - Summa
Discontinued Operations - Summary of Operating Results Through Dates of Divestiture Related to Divested Businesses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Operating expenses: | |||
Loss income from discontinued operations | $ 0 | $ 0 | $ (6,215) |
Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 0 | ||
Cost of revenue | (596) | ||
Gross profit (loss) | 596 | ||
Operating expenses: | |||
Research and development | 5,251 | ||
Selling, general and administrative | 1,560 | ||
Total operating expenses | 6,811 | ||
Loss from discontinued operations | (6,215) | ||
Loss income before income taxes | (6,215) | ||
Income tax provision (benefit) | 0 | ||
Loss income from discontinued operations | (6,215) | ||
Cash flow used in Operating Activities | $ (10,734) |
Earnings Per Share - Computatio
Earnings Per Share - Computation for Basic and Diluted Net Income (Loss) Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 02, 2020 | Jul. 03, 2020 | Apr. 03, 2020 | Jan. 03, 2020 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Numerator: | |||||||||||
Loss from continuing operations | $ 17,492 | $ (24,982) | $ (10,226) | $ (28,362) | $ 10,516 | $ (324,714) | $ (46,204) | $ (23,396) | $ (46,078) | $ (383,798) | $ (133,762) |
Loss from discontinued operations | 0 | 0 | (6,215) | ||||||||
Net loss | (46,078) | (383,798) | (139,977) | ||||||||
Warrant liability gain | 0 | 0 | (27,646) | ||||||||
Net loss attributable to common stockholders | $ (46,078) | $ (383,798) | $ (167,623) | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding-basic (in shares) | 66,606,000 | 65,686,000 | 64,741,000 | ||||||||
Dilutive effect of warrants (in shares) | 0 | 0 | 569,667 | ||||||||
Weighted average common shares outstanding-diluted (in shares) | 66,606,000 | 65,686,000 | 65,311,000 | ||||||||
Basic loss per share: | |||||||||||
Continuing operations (in USD per share) | $ 0.26 | $ (0.37) | $ (0.15) | $ (0.43) | $ 0.16 | $ (4.93) | $ (0.71) | $ (0.36) | $ (0.69) | $ (5.84) | $ (2.07) |
Discontinued operations (in USD per share) | 0 | 0 | (0.10) | ||||||||
Loss per share-basic (in USD per share) | (0.69) | (5.84) | (2.16) | ||||||||
Diluted loss per share: | |||||||||||
Continuing operations (in USD per share) | $ 0.22 | $ (0.37) | $ (0.28) | $ (0.43) | $ 0.16 | $ (4.95) | $ (0.71) | $ (0.44) | (0.69) | (5.84) | (2.47) |
Discontinued operations (in USD per share) | 0 | 0 | (0.10) | ||||||||
Loss per share-diluted (in USD per share) | $ (0.69) | $ (5.84) | $ (2.57) |
Earnings Per Share - Common Equ
Earnings Per Share - Common Equivalent Shares Excluded from Calculation from Net Income Per Share (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Warrant liability expense (gain) | $ (12,948) | $ 765 | $ 27,646 |
Antidilutive securities excluded from earnings per share (in shares) | 1,755,973 | 386,552 | 375,940 |
Dilutive effect of warrants (in shares) | 0 | 0 | 569,667 |
Warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 639,133 | 214,303 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Business Acquisition [Line Items] | |||
Unpaid amounts related to purchase of assets | $ 0.6 | $ 0.6 | |
Fixed assets acquired | 1.5 | $ 18.4 | |
Developer Funded | |||
Business Acquisition [Line Items] | |||
Fixed assets acquired | $ 0.3 | $ 12.7 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information Regarding Noncash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for interest | $ 24,672 | $ 34,157 | $ 29,698 |
Cash (refunded) paid for income taxes | $ (17,465) | $ (1,931) | $ 3,559 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive Income, Net of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 313,896 | $ 668,675 |
Ending balance | 300,146 | 313,896 |
Foreign currency translation loss, net of tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 4,330 | 2,637 |
Other comprehensive income | 458 | 1,693 |
Ending balance | 4,788 | 4,330 |
Other Items | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 28 | (449) |
Ending balance | 221 | 28 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 4,358 | 2,188 |
Ending balance | 5,009 | 4,358 |
Unrealized loss on short-term investments, net of tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Other comprehensive income | $ 193 | $ 477 |
Geographic and Significant Cu_3
Geographic and Significant Customer Information - Additional Information (Detail) | 12 Months Ended | ||
Oct. 02, 2020customersegment | Sep. 27, 2019customer | Sep. 28, 2018customer | |
Segment Reporting Information [Line Items] | |||
Number of reportable operating segments | segment | 1 | ||
Total Revenue | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Number of major customers | customer | 10 | 10 | 10 |
Concentration risk, percentage | 61.00% | 54.00% | 57.00% |
Geographic and Significant Cu_4
Geographic and Significant Customer Information - Summary of Different Geographic Regions (Detail) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 118,866 | $ 132,647 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 99,118 | 116,037 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 13,129 | 7,377 |
Other Countries | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 6,619 | $ 9,233 |
Geographic and Significant Cu_5
Geographic and Significant Customer Information - Summary of Customer Concentrations as Percentage of Total Sales and Accounts Receivable (Detail) - Customer Concentration Risk | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Total Sales | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 61.00% | 54.00% | 57.00% |
Total Sales | Customer A | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 14.00% | 16.00% | 13.00% |
Total Sales | Customer B | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 12.00% | 0.00% | 0.00% |
Total Sales | Customer C | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 12.00% | 0.00% | 0.00% |
Accounts Receivable | Customer A | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 20.00% | 24.00% | |
Accounts Receivable | Customer D | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 8.00% | 10.00% |
Quarterly Financial Data - Sche
Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 02, 2020 | Jul. 03, 2020 | Apr. 03, 2020 | Jan. 03, 2020 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 147,249 | $ 137,267 | $ 126,424 | $ 119,097 | $ 112,248 | $ 108,306 | $ 128,465 | $ 150,689 | $ 530,037 | $ 499,708 | $ 570,398 |
Gross profit | 77,716 | 70,876 | 63,370 | 58,204 | 52,925 | 33,828 | 57,330 | 76,625 | 270,166 | 220,708 | 245,706 |
Loss from continuing operations | $ 17,492 | $ (24,982) | $ (10,226) | $ (28,362) | $ 10,516 | $ (324,714) | $ (46,204) | $ (23,396) | $ (46,078) | $ (383,798) | $ (133,762) |
Per share data | |||||||||||
Loss from continuing operations (in USD per share) | $ 0.26 | $ (0.37) | $ (0.15) | $ (0.43) | $ 0.16 | $ (4.93) | $ (0.71) | $ (0.36) | $ (0.69) | $ (5.84) | $ (2.07) |
Per share data | |||||||||||
Loss from continuing operations (in USD per share) | $ 0.22 | $ (0.37) | $ (0.28) | $ (0.43) | $ 0.16 | $ (4.95) | $ (0.71) | $ (0.44) | $ (0.69) | $ (5.84) | $ (2.47) |
Warrant liability gain | $ 2,000 | $ 8,600 | $ 1,900 | $ 5,500 |