Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Sep. 30, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II- Valuation and Qualifying Accounts

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

DIGI INTERNATIONAL INC.

(in thousands)

			Additions
Description	Balance at beginning of period		Charged to costs and expenses		Charged to Other Accounts			Deductions			Balance at end of period
Valuation allowance - deferred tax assets
September 30, 2019	$	3,291	$	529	$	—		$	10		$	3,810
September 30, 2018	$	5,952	$	521	$	—		$	3,182		$	3,291
September 30, 2017	$	5,914	$	136	$	—		$	98		$	5,952
Valuation account - doubtful accounts
September 30, 2019 (1)	$	785	$	635	$	—		$	452	(4)	$	968
September 30, 2018 (1)	$	341	$	729	$	40	(2)	$	325	(4)	$	785
September 30, 2017	$	209	$	127	$	20	(3)	$	15	(4)	$	341
Reserve for future returns and pricing adjustments
September 30, 2019	$	2,560	$	12,640	$	—		$	12,523		$	2,677
September 30, 2018	$	2,169	$	10,715	$	—		$	10,324		$	2,560
September 30, 2017	$	1,991	$	10,447	$	—		$	10,269		$	2,169

(1) Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

(2) Established through purchase accounting relating to the acquisition of TempAlert

(3) Established through purchase accounting relating to the acquisition of SMART Temps^® 

(4) Uncollectible accounts charged against allowance, net of recoveries