Depreciation is computed using the straight-line method and depreciation expense is allocated between cost of revenue, research and development expenses, and selling, general, and administrative expenses on the statements of operations over the following estimated useful lives:
 
Estimated Useful Life
Computer equipment and software, furniture and fixtures, test equipment, and other equipment
3 - 7 years
Internal use software
5 years
Leasehold improvements
Shorter of estimated useful life or remaining term of the lease
Property and equipment at September 27, 2025 and September 28, 2024 consists of the following (in thousands):
 
 Year Ended
 September 27, 2025September 28, 2024
Computer equipment and software, furniture and fixtures, test equipment, and other equipment$151,729 $114,515 
Internal use software5,590 7,141 
Leasehold improvements10,641 9,576 
Total property and equipment167,960 131,232 
Less accumulated depreciation(50,311)(34,123)
Property and equipment, net$117,649 $97,109 

Historical Timeline

Fiscal YearFiled
2025Nov 24, 2025Showing above
2024Dec 4, 2024
2023Dec 11, 2023
2022Dec 9, 2022

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.