Other Balance Sheet Information

3 Months Ended

Dec. 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 December 31, 2020 and September 30, 2020 (in thousands):

	December 31,		September 30,
	2020		2020
Accounts receivable	$	202,691	$	195,587
Less allowance for expected credit losses		(5,937)		(7,216)
Less allowance for sales returns		(75)		(80)
Accounts receivable, net	$	196,679	$	188,291

The decrease in the allowance for expected credit losses from September 30, 2020 is due to collections of previously reserved trade receivables in the Brooks Life Sciences Services segment during the first quarter of fiscal year 2021.

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

	December 31,		September 30,
	2020		2020
Inventories
Raw materials and purchased parts	$	78,460	$	73,609
Work-in-process		19,655		16,461
Finished goods		25,802		24,764
Total inventories	$	123,917	$	114,834

Reserves for excess and obsolete inventory were $17.7 million and $17.1 million, respectively, at December 31, 2020 and September 30, 2020.

At December 31, 2020 and September 30, 2020, the Company had cumulative capitalized direct costs of $20.0 million and $18.2 million, respectively, associated with the development of software for its internal use. As of December 31, 2020, this balance included $4.8 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 three months ended December 31, 2020, the Company capitalized direct costs of $1.8 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, 2020 and 2019 (in thousands):

Activity -Three Months Ended December 31, 2020
Balance						Balance
September 30,						December 31,
2020		Accruals		Costs Incurred		2020
$	8,201	$	2,451	$	(2,424)	$	8,228
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