Other Balance Sheet Information

9 Months Ended

Jun. 30, 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 June 30, 2020 and September 30, 2019 (in thousands):

	June 30,		September 30,
	2020		2019
Accounts receivable	$	189,059	$	169,317
Less allowance for doubtful accounts		(5,805)		(3,644)
Less allowance for sales returns		(87)		(71)
Accounts receivable, net	$	183,167	$	165,602

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

	June 30,		September 30,
	2020		2019
Inventories
Raw materials and purchased parts	$	77,715	$	67,176
Work-in-process		16,307		13,684
Finished goods		23,664		18,585
Total inventories	$	117,686	$	99,445

Reserves for excess and obsolete inventory were $16.7 million and $16.3 million, respectively, at June 30, 2020 and September 30, 2019.

At June 30, 2020 and September 30, 2019, the Company had cumulative capitalized direct costs of $16.2 million and $11.6 million, respectively, associated with the development of software for its internal use. As of June 30, 2020, this balance included $3.8 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 nine months ended June 30, 2020, the Company capitalized direct costs of $4.6 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 nine months ended June 30, 2020 and 2019 (in thousands):

Activity -Three Months Ended June 30, 2020
Balance						Balance
March 31,						June 30,
2020		Accruals		Costs Incurred		2020
$	7,910	$	1,380	$	(1,409)	$	7,881
Activity -Three Months Ended June 30, 2019
Balance						Balance
March 31,						June 30,
2019		Accruals		Costs Incurred		2019
$	7,202	$	2,257	$	(2,269)	$	7,190
Activity -Nine Months Ended June 30, 2020
Balance						Balance
September 30,						June 30,
2019		Accruals		Costs Incurred		2020
$	7,175	$	6,033	$	(5,327)	$	7,881
Activity -Nine Months Ended June 30, 2019
Balance						Balance
September 30,						June 30,
2018		Accruals		Costs Incurred		2019
$	6,340	$	6,419	$	(5,569)	$	7,190