Segment Information

12 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

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:

	Year Ended September 30,
	2021			2020			2019
Segment external net sales:
Aerospace	$	1,404,117		$	1,590,963		$	1,880,520
Industrial		841,715			904,702			1,019,677
Total consolidated net sales	$	2,245,832		$	2,495,665		$	2,900,197
Segment earnings:
Aerospace	$	234,356		$	310,137		$	389,126
Industrial		108,672			100,321			93,521
Nonsegment expenses		(64,442	)		(94,530	)		(119,447	)
Interest Expense, net		(32,787	)		(34,047	)		(42,588	)
Consolidated earnings before income taxes	$	245,799		$	281,881		$	320,612

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:

	Year Ended September 30,
	2021		2020		2019
Segment assets:
Aerospace	$	1,698,833	$	1,752,516	$	1,900,657
Industrial		1,453,423		1,529,411		1,561,441
Unallocated corporate property, plant and equipment, net		106,014		106,380		114,887
Other unallocated assets		832,734		515,029		379,541
Consolidated total assets	$	4,091,004	$	3,903,336	$	3,956,526
Segment depreciation and amortization:
Aerospace	$	62,075	$	63,530	$	60,710
Industrial		56,885		57,444		71,173
Unallocated corporate amounts		10,564		10,184		10,121
Consolidated depreciation and amortization	$	129,524	$	131,158	$	142,004
Segment capital expenditures:
Aerospace	$	17,303	$	26,148	$	56,525
Industrial		15,164		10,631		30,195
Unallocated corporate amounts		5,222		10,308		12,346
Consolidated capital expenditures	$	37,689	$	47,087	$	99,066

Sales to Boeing were made by Woodward’s Aerospace segment and totaled approximately 13% of net sales in fiscal year 2021, 14% of net sales in fiscal year 2020, and 15% of net sales in fiscal year 2019.  Sales to GE were made by both of Woodward’s reportable segments and totaled approximately 11% of net sales in fiscal year 2021 and 2020, and 14% of net sales in fiscal year 2019.  

Accounts receivable from Boeing totaled approximately 14% of accounts receivable at September 30, 2021 and 13% of accounts receivable at September 30, 2020.  Accounts receivable from GE totaled approximately 10% of accounts receivable at September 30, 2021 and 9% of accounts receivable at and September 30, 2020.  

U.S. Government related sales from Woodward’s reportable segments were as follows:

	Direct U.S. Government Sales			Indirect U.S. Government Sales			Total U.S. Government Related Sales
Fiscal year ended September 30, 2021
Aerospace	$	116,832		$	526,118		$	642,950
Industrial		7,732			2,442			10,174
Total net external sales	$	124,564		$	528,560		$	653,124
Percentage of total net sales		6	%		23	%		29	%
Fiscal year ended September 30, 2020
Aerospace	$	149,416		$	536,424		$	685,840
Industrial		5,867			17,473			23,340
Total net external sales	$	155,283		$	553,897		$	709,180
Percentage of total net sales		6	%		22	%		28	%
Fiscal year ended September 30, 2019
Aerospace	$	118,334		$	545,306		$	663,640
Industrial		4,491			13,810			18,301
Total net external sales	$	122,825		$	559,116		$	681,941
Percentage of total net sales		4	%		19	%		23	%