Other Balance Sheet Information

6 Months Ended

Mar. 31, 2020

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 March 31, 2020 and September 30, 2019 (in thousands):

	March 31,		September 30,
	2020		2019
Accounts receivable	$	183,324	$	169,317
Less allowance for doubtful accounts		(4,225)		(3,644)
Less allowance for sales returns		(85)		(71)
Accounts receivable, net	$	179,014	$	165,602

The following is a summary of inventories at March 31, 2020 and September 30, 2019 (in thousands):

	March 31,		September 30,
	2020		2019
Inventories
Raw materials and purchased parts	$	73,473	$	67,176
Work-in-process		13,443		13,684
Finished goods		20,783		18,585
Total inventories	$	107,699	$	99,445

Reserves for excess and obsolete inventory were $16.1 million and $16.3 million, respectively, at March 31, 2020 and September 30, 2019.

At March 31, 2020 and September 30, 2019, the Company had cumulative capitalized direct costs of $14.1 million and $11.6 million, respectively, associated with the development of software for its internal use. As of March 31, 2020, this balance included $1.7 million associated with software still in the development stage which are included within "Property, plant and equipment, net" in the accompanying unaudited Consolidated Balance Sheets. During the six months ended March 31, 2020, the Company capitalized direct costs of $2.5 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 and six months ended March 31, 2020 and 2019 (in thousands):

Activity -Three Months Ended March 31, 2020
Balance						Balance
December 31,						March 31,
2019		Accruals		Costs Incurred		2020
$	7,493	$	2,174	$	(1,757)	$	7,910
Activity -Three Months Ended March 31, 2019
Balance						Balance
December 31,						March 31,
2018		Accruals		Costs Incurred		2019
$	6,851	$	1,807	$	(1,456)	$	7,202
Activity -Six Months Ended March 31, 2020
Balance						Balance
September 30,						March 31,
2019		Accruals		Costs Incurred		2020
$	7,175	$	4,653	$	(3,918)	$	7,910
Activity -Six Months Ended March 31, 2019
Balance						Balance
September 30,						March 31,
2018		Accruals		Costs Incurred		2019
$	6,340	$	4,161	$	(3,299)	$	7,202