Balance Sheet Details

3 Months Ended

Dec. 31, 2020

Balance Sheet Details

Balance Sheet Details

Note 6 — Balance Sheet Details

Restricted Cash

Cash and cash equivalents excluded $33.4 million and $27.3 million of restricted cash at December 31, 2020 and

September 30, 2020, 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,
	2020		2020
Finished products	$	18,503	$	14,838
Work in process and inventoried costs under long-term contracts		69,347		73,076
Materials and purchased parts		43,015		39,337
Net inventories	$	130,865	$	127,251

At December 31, 2020, work in process and inventoried costs under long-term contracts included approximately $6.6 million in costs incurred outside the scope of work or in advance of a contract award compared to $5.3 million at September 30, 2020. We believe it is probable that we will recover the costs inventoried at December 31, 2020, plus a profit margin, under contract change orders or awards within the next year.

Property, Plant and Equipment

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

	December 31,		September 30,
	2020		2020
Land and land improvements	$	7,200	$	7,423
Buildings and improvements		50,166		49,716
Machinery and other equipment		145,176		132,962
Software		124,753		121,890
Leasehold improvements		23,381		22,295
Construction and internal-use software development in progress		13,853		21,409
Accumulated depreciation and amortization		(198,953)		(189,394)
	$	165,576	$	166,301

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 $10.1 million at December 31, 2020 and $9.6 million at September 30, 2020.

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 $7.2 million at December 31, 2020 and $6.8 million at September 30, 2020 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.