Balance Sheet Details

3 Months Ended

Dec. 31, 2019

Balance Sheet Details

Balance Sheet Details

Note 6 — Balance Sheet Details

Restricted Cash

Cash and cash equivalents excludes $32.4 million and $29.5 million of restricted cash at December 31, 2019 and September 30, 2019, respectively, which for purposes of our consolidated statements of cash flows, is included in cash, cash equivalents and restricted cash.

Inventories

Inventories consist of the following (in thousands):

	December 31,		September 30,
	2019		2019
Finished products	$	11,167	$	10,905
Work in process and inventoried costs under long-term contracts		67,075		46,951
Materials and purchased parts		44,670		48,938
Net inventories	$	122,912	$	106,794

At December 31, 2019, work in process and inventoried costs under long-term contracts includes approximately $4.8 million in costs incurred outside the scope of work or in advance of a contract award compared to $5.8 million at September 30, 2019. We believe it is probable that we will recover the costs inventoried at December 31, 2019, plus a profit margin, under contract change orders or awards within the next year.

Costs we incur for certain U.S. federal government contracts include general and administrative costs as allowed by government cost accounting standards. The amounts remaining in inventory totaled $0.5 million at both December 31, 2019 and September 30, 2019.

Property, Plant and Equipment

Significant components of property, plant and equipment are as follows (in thousands):

	December 31,		September 30,
	2019		2019
Land and land improvements	$	7,463	$	7,348
Buildings and improvements		49,359		48,191
Machinery and other equipment		119,674		107,297
Software		107,513		108,526
Leasehold improvements		17,671		17,064
Construction and internal-use software development in progress		17,785		16,814
Accumulated depreciation and amortization		(168,247)		(160,271)
	$	151,218	$	144,969

Deferred Compensation Plan

We have a non-qualified deferred compensation plan offered to a select group of highly compensated employees. The plan provides participants with the opportunity to defer a portion of their compensation in a given plan year. The liabilities associated with the non-qualified deferred compensation plan are included in other noncurrent liabilities in our Condensed Consolidated Balance Sheets and totaled $11.8 million at December 31, 2019 and $11.0 million at September 30, 2019.

In the past we have made contributions to a rabbi trust to provide a source of funds for satisfying a portion of these deferred compensation liabilities. The total carrying value of the assets set aside to fund deferred compensation liabilities totaled $6.8 million at December 31, 2019 and at September 30, 2019 and were comprised entirely of life insurance contracts. The carrying value of the life insurance contracts is based on the cash surrender value of the policies. Changes in the carrying value of the deferred compensation liability, and changes in the carrying value of the assets held in the rabbi trust are reflected in our Condensed Consolidated Statements of Operations.