Other Balance Sheet Information

3 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Balance Sheet Information

11. Other Balance Sheet Information

The following is a summary of accounts receivable at December 31, 2019 and September 30, 2019 (in thousands):

	December 31,		September 30,
	2019		2019
Accounts receivable	$	168,851	$	169,317
Less allowance for doubtful accounts		(3,592)		(3,644)
Less allowance for sales returns		(83)		(71)
Accounts receivable, net	$	165,176	$	165,602

The following is a summary of inventories at December 31, 2019 and September 30, 2019 (in thousands):

	December 31,		September 30,
	2019		2019
Inventories
Raw materials and purchased parts	$	70,694	$	67,176
Work-in-process		13,625		13,684
Finished goods		20,862		18,585
Total inventories	$	105,181	$	99,445

Reserves for excess and obsolete inventory were $16.0 million and $16.3 million, respectively, at December 31, 2019 and September 30, 2019.

At December 31, 2019 and September 30, 2019, the Company had cumulative capitalized direct costs of $12.5 million and $11.6 million, respectively, associated with the development of software for its internal use which are included within "Property, plant and equipment, net" in the accompanying unaudited Consolidated Balance Sheets. During the three months ended December 31, 2019, the Company capitalized direct costs of $0.9 million associated with the development of software for its internal use.

The Company establishes reserves for estimated costs of product warranties based on historical information. Product warranty reserves are recorded at the time product revenue is recognized, and retrofit accruals are recorded at the time retrofit programs are established. The Company’s warranty obligation is affected by product failure rates, utilization

levels, material usage, service delivery costs incurred in correcting a product failure and supplier warranties on parts delivered to the Company.

The following is a summary of product warranty and retrofit activity on a gross basis for the three months ended December 31, 2019 and 2018 (in thousands):

Activity -Three Months Ended December 31, 2019
Balance						Balance
September 30,						December 31,
2019		Accruals		Costs Incurred		2019
$	7,175	$	2,479	$	(2,161)	$	7,493

Activity -Three Months Ended December 31, 2018
Balance						Balance
September 30,						December 31,
2018		Accruals		Costs Incurred		2018
$	6,340	$	2,355	$	(1,844)	$	6,851