Segment Information

9 Months Ended

Jun. 30, 2016

Segment Information

Segment Information

Note 21.  Segment information

Woodward serves the aerospace, industrial and energy markets through its two reportable segments - Aerospace and Industrial.  Woodward’s reportable segments are aggregations of Woodward’s operating segments.  Woodward uses operating segment information internally to manage its business, including the assessment of operating segment performance and decisions for the allocation of resources between operating segments.

In the first quarter of fiscal year 2016, Woodward changed the name of its Energy segment to Industrial.  The term “energy” is largely viewed as “oil and gas” and therefore was not representative of the broader markets Woodward serves in this segment.

The accounting policies of the reportable segments are the same as those of the Company.  Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period.  In connection with that assessment, Woodward excludes matters such as certain charges for restructuring costs, interest income and expense, certain gains and losses from asset dispositions, or other non-recurring and/or non-operationally related expenses. 

A summary of consolidated net sales and earnings by segment follows:

	Three-Months Ended				Nine-Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Segment external net sales:
Aerospace	$	308,582	$	288,480	$	867,871	$	825,676
Industrial		199,082		206,330		564,285		650,002
Total consolidated net sales	$	507,664	$	494,810	$	1,432,156	$	1,475,678
Segment earnings:
Aerospace	$	57,726	$	46,362	$	151,790	$	127,783
Industrial		21,963		30,619		62,983		97,111
Total segment earnings		79,689		76,981		214,773		224,894
Nonsegment expenses		(10,369)		(13,564)		(50,877)		(35,884)
Interest expense, net		(5,912)		(5,858)		(18,166)		(16,788)
Consolidated earnings before income taxes	$	63,408	$	57,559	$	145,730	$	172,222

Segment assets consist of accounts receivable; inventories; property, plant, and equipment, net; goodwill; and other intangibles, net.  A summary of consolidated total assets by segment follows:

	June 30, 2016		September 30, 2015
Segment assets:
Aerospace	$	1,603,716	$	1,566,421
Industrial		701,763		653,848
Total segment assets		2,305,479		2,220,269
Unallocated corporate property, plant and equipment, net		86,688		85,834
Other unallocated assets		253,899		207,813
Consolidated total assets	$	2,646,066	$	2,513,916