Segment Information

6 Months Ended

Mar. 31, 2020

Note 23. 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,
	2020		2019		2020		2019
Segment external net sales:
Aerospace	$	474,236	$	482,954	$	948,161	$	875,841
Industrial		245,984		275,890		492,414		535,814
Total consolidated net sales	$	720,220	$	758,844	$	1,440,575	$	1,411,655
Segment earnings:
Aerospace	$	117,638	$	101,722	$	210,549	$	174,576
Industrial		25,972		27,128		54,202		56,297
Nonsegment expenses		(28,131)		(27,496)		(79,202)		(56,497)
Interest expense, net		(8,280)		(11,186)		(16,802)		(22,693)
Consolidated earnings before income taxes	$	107,199	$	90,168	$	168,747	$	151,683

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



	March 31, 2020		September 30, 2019
Segment assets:
Aerospace	$	1,892,325	$	1,900,657
Industrial		1,541,137		1,561,441
Unallocated corporate property, plant and equipment, net		105,881		114,887
Other unallocated assets		520,933		379,541
Consolidated total assets	$	4,060,276	$	3,956,526