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Other Balance Sheet Information
3 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Balance Sheet Information

9. Other Balance Sheet Information

The following is a summary of accounts receivable at December 31, 2022 and September 30, 2022 (in thousands):

December 31, 

September 30, 

    

2022

    

2022

    

Accounts receivable

$

208,862

$

168,920

Less allowance for expected credit losses

 

(6,942)

 

(5,162)

Accounts receivable, net

$

201,920

$

163,758

The allowance for expected credit losses for the fiscal years ended December 31, 2022 and September 30, 2022 (in thousands):

Balance at

Reversals of

Balance at

Beginning of 

Bad Debt 

End of 

Description

    

Period

    

Provisions

    

Expense

    

Period

Fiscal year 2023 allowance for expected credit losses

$

5,162

2,716

(936)

$

6,942

Fiscal year 2022 allowance for expected credit losses

 

4,318

3,020

(2,924)

4,414

The following is a summary of inventories at December 31, 2022 and September 30, 2022 (in thousands):

 

December 31, 

 

September 30, 

 

2022

 

2022

    

Inventories

 

  

 

 

  

 

Raw materials and purchased parts

 

$

80,269

 

$

39,685

Work-in-process

 

4,740

 

4,816

Finished goods

 

60,930

 

41,043

Total inventories

 

$

145,939

 

$

85,544

Reserves related to write downs or adjustments of inventory to net realizable value were $4.3 million and $4.1 million, respectively, at December 31, 2022 and September 30, 2022.

At December 31, 2022 and September 30, 2022, the Company had cumulative capitalized direct costs of $27.9 million and $26.9 million, respectively, associated with the development of software for its internal use. As of December 31, 2022, this balance included $9.7 million associated with software assets that are still in the development stage and not yet placed in service. During the three months ended December 31, 2022, the Company capitalized direct costs of $1.1 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, 2022 and 2021 (in thousands):

Activity -Three Months Ended December 31, 2022

Balance

    

    

    

Balance

September 30, 

December 31, 

2022

Adjustments for Acquisitions

Accruals

Costs Incurred

2022

$

2,890

2,303

$

307

$

(321)

$

5,179

Activity -Three Months Ended December 31, 2021

Balance

    

    

    

Balance

September 30, 

December 31, 

2021

Adjustments for Acquisitions

Accruals

Costs Incurred

2021

$

2,330

$

673

$

(660)

$

2,342