Segment Information

6 Months Ended

Mar. 31, 2018

Note 21. Segment information

Woodward serves the aerospace and industrial markets through its two reportable segments - Aerospace and Industrial. When appropriate, 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.

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 generally excludes matters such as certain charges for restructuring, 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				Six-Months Ended
	March 31,				March 31,
	2018		2017		2018		2017
Segment external net sales:
Aerospace	$	386,343	$	320,526	$	692,248	$	587,206
Industrial		161,906		179,855		326,149		356,069
Total consolidated net sales	$	548,249	$	500,381	$	1,018,397	$	943,275
Segment earnings:
Aerospace	$	72,969	$	58,227	$	116,522	$	105,104
Industrial		10,237		17,089		29,581		35,087
Nonsegment expenses(1)		(28,343)		(18,764)		(47,366)		(30,145)
Interest expense, net		(6,216)		(6,316)		(12,603)		(12,751)
Consolidated earnings before income taxes	$	48,647	$	50,236	$	86,134	$	97,295

(1)

Nonsegment expenses for the three and six-months ended March 31, 2018 includes restructuring charges of $17,013. See Note 14, Accrued liabilities for further details.

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:



	March 31, 2018		September 30, 2017
Segment assets:
Aerospace	$	1,723,472	$	1,722,789
Industrial		686,329		695,264
Unallocated corporate property, plant and equipment, net		121,216		104,755
Other unallocated assets		254,734		234,301
Consolidated total assets	$	2,785,751	$	2,757,109