Other Balance Sheet Information

9 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Balance Sheet Information

10. Other Balance Sheet Information

The following is a summary of accounts receivable at June 30, 2019 and September 30, 2018 (in thousands):

	June 30,		September 30,
	2019		2018
Accounts receivable	$	166,038	$	126,350
Less allowance for doubtful accounts		(2,888)		(1,113)
Less allowance for sales returns		(45)		(45)
Accounts receivable, net	$	163,105	$	125,192

The following is a summary of inventories at June 30, 2019 and September 30, 2018 (in thousands):

	June 30,		September 30,
	2019		2018
Inventories
Raw materials and purchased parts	$	69,070	$	57,527
Work-in-process		12,886		19,547
Finished goods		22,830		19,912
Total inventories	$	104,786	$	96,986

Reserves for excess and obsolete inventory were $16.2 million and $15.0 million, respectively, at June 30, 2019 and September 30, 2018.

At June 30, 2019 and September 30, 2018, the Company had cumulative capitalized direct costs of $9.1 million and $5.6 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 nine months ended June 30, 2019, the Company capitalized direct costs of $2.6 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, 2019 and 2018 (in thousands):

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 -Three Months Ended June 30, 2018
Balance						Balance
March 31,						June 30,
2018		Accruals		Costs Incurred		2018
$	5,634	$	1,145	$	(702)	$	6,077

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

Activity -Nine Months Ended June 30, 2018
Balance						Balance
September 30,						June 30,
2017		Accruals		Costs Incurred		2018
$	5,479	$	3,929	$	(3,331)	$	6,077