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