Segment Information

12 Months Ended

Sep. 30, 2011

Segment Information - WWD

Segment Information

Note 21. Segment information

Effective with the Company's September 30, 2011 financial reporting, Woodward completed a realignment of its reportable segments to correspond with senior management's global strategic focus on the markets Woodward serves — the aerospace market and the energy market. Woodward serves these markets through its two reportable segments — Aerospace and Energy. All information in this Annual Report on Form 10-K, including comparative financial information, has been retrospectively revised to reflect the realignment of the reportable segments. Woodward uses reportable segment information internally to manage its business, including the assessment of business segment performance and decisions for the allocation of resources between segments.

Woodward's Aerospace segment combines the aircraft propulsion portion of the former Turbine Systems business group, now referred to as the Aircraft Turbine Systems business group, with the Airframe Systems business group. Woodward's Energy segment combines the industrial turbine portion of the former Turbine Systems business group, now referred to as the Industrial Turbomachinery Systems business group, with the Engine Systems and Electrical Power Systems business groups.

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 charges for restructuring costs, interest income and expense, and certain gains and losses from asset dispositions.

A summary of total segment net sales and consolidated earnings before income taxes follows:

	Year Ending September 30,
	2011			2010			2009
Segment external net sales:
Aerospace	$	843,032		$	769,379		$	704,771
Energy		868,670			687,651			725,354
Total consolidated net sales	$	1,711,702		$	1,457,030		$	1,430,125
Segment earnings:
Aerospace	$	129,502		$	112,171		$	104,550
Energy		113,872			94,014			96,938
Total segment earnings		243,374			206,185			201,488
Nonsegment expenses		(30,942	)		(22,434	)		(46,514	)
Interest expense, net		(24,865	)		(28,876	)		(32,498	)
Consolidated earnings before income taxes	$	187,567		$	154,875		$	122,476

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

	At or for the year ending September 30,
	2011		2010		2009
Segment assets:
Aerospace	$	1,036,797	$	994,868	$	1,042,956
Energy		569,929		461,900		439,167
Total segment assets		1,606,726		1,456,768		1,482,123
Unallocated corporate property, plant and equipment, net		8,556		6,111		6,857
Other unallocated assets		166,152		200,354		207,442
Consolidated total assets	$	1,781,434	$	1,663,233	$	1,696,422
Segment depreciation and amortization:
Aerospace	$	50,167	$	50,611	$	38,643
Energy		21,691		21,165		22,452
Total segment depreciation and amortization		71,858		71,776		61,095
Unallocated corporate amounts		3,535		3,840		2,853
Consolidated depreciation and amortization	$	75,393	$	75,616	$	63,948
Segment capital expenditures:
Aerospace	$	34,007	$	13,744	$	11,612
Energy		14,168		11,578		15,158
Total segment capital expenditures		48,175		25,322		26,770
Unallocated corporate amounts		80		2,782		2,177
Consolidated capital expenditures	$	48,255	$	28,104	$	28,947

Sales to General Electric were made by all of Woodward's reportable segments and totaled approximately 14% of net sales in fiscal year 2011, 15% of net sales in fiscal year 2010, and 17% of net sales in fiscal year 2009. Accounts receivable from General Electric totaled approximately 11% and 14% of accounts receivable at September 30, 2011 and 2010, respectively.

External net sales by geographical area, as determined by the location of the customer invoiced, were as follows:

	Year Ending September 30,
	2011		2010		2009
United States	$	874,791	$	797,826	$	730,545
Europe		473,054		377,094		406,910
Asia		264,493		191,761		188,958
Other countries		99,364		90,349		103,712
Consolidated external net sales	$	1,711,702	$	1,457,030	$	1,430,125

Property, plant, and equipment — net by geographical area, as determined by the physical location of the assets, were as follows:

	At September 30,
	2011		2010
United States	$	149,295	$	135,826
Germany		28,385		29,340
Other countries		29,045		28,358
Consolidated property, plant and equipment	$	206,725	$	193,524