Segment Information

9 Months Ended

Jun. 30, 2012

Segment Information

Segment Information

Note 20. Segment information

Woodward serves two significant markets – the aerospace market and the energy market. In order to better serve these markets, Woodward completed a realignment of its reportable segments in September 2011 and now reports its financial results through two reportable segments – Aerospace and Energy. The 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. The 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 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.

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

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

	Three-Months Ending June 30,						Nine-Months Ending June 30,
	2012			2011			2012			2011
Segment external net sales:
Aerospace	$	214,474		$	215,242		$	632,037		$	601,331
Energy		245,767			223,225			704,893			621,077
Total consolidated net sales	$	460,241		$	438,467		$	1,336,930		$	1,222,408
Segment earnings:
Aerospace	$	21,536		$	35,402		$	82,277		$	88,557
Energy		31,205			29,251			92,264			80,695
Total segment earnings		52,741			64,653			174,541			169,252
Nonsegment expenses		(8,687	)		(7,554	)		(23,623	)		(21,599	)
Interest expense, net		(6,346	)		(6,244	)		(18,996	)		(18,836	)
Consolidated earnings before income taxes	$	37,708		$	50,855		$	131,922		$	128,817

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, 2012		September 30, 2011
Segment assets:
Aerospace	$	1,042,807	$	1,036,797
Energy		585,470		569,929
Total segment assets		1,628,277		1,606,726
Unallocated corporate property, plant and equipment, net		12,587		8,556
Other unallocated assets		153,373		166,152
Consolidated total assets	$	1,794,237	$	1,781,434

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