Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2014 | Apr. 18, 2014 | |
Document and Entity Information | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'WOODWARD, INC. | ' |
Entity Central Index Key | '0000108312 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 66,304,270 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidated Statements of Earnings | ' | ' | ' | ' |
Net sales | $482,467 | $485,513 | $911,509 | $893,852 |
Costs and expenses: | ' | ' | ' | ' |
Cost of goods sold | 340,028 | 348,100 | 655,494 | 637,673 |
Selling, general and administrative expenses | 35,283 | 37,206 | 72,611 | 73,624 |
Research and development costs | 35,805 | 34,000 | 65,229 | 64,018 |
Amortization of intangible assets | 8,657 | 9,813 | 17,141 | 17,480 |
Interest expense | 6,185 | 7,017 | 12,247 | 13,473 |
Interest income | -57 | -69 | -116 | -137 |
Other (income) expense, net (Note 16) | -190 | -890 | -797 | -1,152 |
Total costs and expenses | 425,711 | 435,177 | 821,809 | 804,979 |
Earnings before income taxes | 56,756 | 50,336 | 89,700 | 88,873 |
Income tax expense | 11,958 | 7,890 | 21,519 | 19,059 |
Net earnings | $44,798 | $42,446 | $68,181 | $69,814 |
Earnings per share (Note 3): | ' | ' | ' | ' |
Basic earnings per share | $0.67 | $0.62 | $1.01 | $1.02 |
Diluted earnings per share | $0.66 | $0.61 | $1 | $1 |
Weighted Average Common Shares Outstanding (Note 3): | ' | ' | ' | ' |
Basic | 66,633 | 68,737 | 67,182 | 68,597 |
Diluted | 67,905 | 69,935 | 68,463 | 69,831 |
Cash dividends per share paid to Woodward common stockholders | $0.08 | $0.08 | $0.16 | $0.16 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Earnings (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Comprehensive earnings | ' | ' | ' | ' |
Net earnings | $44,798 | $42,446 | $68,181 | $69,814 |
Other comprehensive earnings: | ' | ' | ' | ' |
Foreign currency translation adjustments | -243 | -10,509 | 4,231 | -6,058 |
Taxes on changes in foreign currency translation adjustments | -139 | -193 | 294 | 419 |
Foreign currency translation adjustments, net of tax | -382 | -10,702 | 4,525 | -5,639 |
Reclassification of net realized losses on derivatives to earnings | 24 | 43 | 49 | 86 |
Taxes on changes in derivative transactions | -9 | -16 | -18 | -33 |
Derivative adjustments, net of tax | 15 | 27 | 31 | 53 |
Minimum retirement benefit liability adjustments (Note 18): | ' | ' | ' | ' |
Amortization of prior service benefit | -22 | -23 | -44 | -46 |
Amortization of net loss | 195 | 441 | 389 | 892 |
Foreign currency exchange rate changes on minimum retirement benefit liabilities | -124 | 1,242 | -220 | 1,185 |
Taxes on changes in minimum retirement benefit liability adjustments | -18 | -591 | -45 | -725 |
Minimum retirement benefit liability adjustments, net of tax | 31 | 1,069 | 80 | 1,306 |
Total comprehensive earnings | $44,462 | $32,840 | $72,817 | $65,534 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $56,665 | $48,556 |
Accounts receivable, less allowance for uncollectible amounts of $7,741 and $8,872, respectively | 320,492 | 381,065 |
Inventories | 458,733 | 431,744 |
Income taxes receivable | 6,820 | 14,071 |
Deferred income tax assets | 43,027 | 43,027 |
Other current assets | 43,514 | 38,650 |
Total current assets | 929,251 | 957,113 |
Property, plant and equipment, net | 401,050 | 350,048 |
Goodwill | 562,617 | 561,458 |
Intangible assets, net | 271,887 | 288,775 |
Deferred income tax assets | 17,424 | 13,926 |
Other assets | 56,211 | 47,198 |
Total assets | 2,238,440 | 2,218,518 |
Current liabilities: | ' | ' |
Short-term borrowings | 21,000 | 0 |
Current portion of long-term debt | 0 | 100,000 |
Accounts payable | 154,372 | 145,541 |
Income taxes payable | 13,726 | 7,848 |
Deferred income tax liabilities | 800 | 800 |
Accrued liabilities | 128,013 | 161,741 |
Total current liabilities | 317,911 | 415,930 |
Long-term debt, less current portion | 584,000 | 450,000 |
Deferred income tax liabilities | 105,427 | 104,533 |
Other liabilities | 101,304 | 105,510 |
Total liabilities | 1,108,642 | 1,075,973 |
Commitments and contingencies (Note 20) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, par value $0.003 per share, 10,000 shares authorized, no shares issued | 0 | 0 |
Common stock, par value $0.001455 per share, 150,000 shares authorized, 72,960 shares issued | 106 | 106 |
Additional paid-in capital | 108,157 | 101,147 |
Accumulated other comprehensive earnings | 19,751 | 15,115 |
Deferred compensation | 4,009 | 4,007 |
Retained earnings | 1,251,314 | 1,193,887 |
Stockholders' equity excluding treasury stock | 1,383,337 | 1,314,262 |
Treasury stock at cost, 6,657 shares and 4,883 shares, respectively | -249,530 | -167,710 |
Treasury stock held for deferred compensation, at cost, 215 shares and 232 shares, respectively | -4,009 | -4,007 |
Total stockholders' equity | 1,129,798 | 1,142,545 |
Total liabilities and stockholders' equity | $2,238,440 | $2,218,518 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Allowance, accounts receivable | $7,741 | $8,872 |
Stockholders' equity: | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 72,960,000 | 72,960,000 |
Treasury stock, shares | 6,657,000 | 4,883,000 |
Treasury stock held for deferred compensation, shares | 215,000 | 232,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net earnings | $68,181 | $69,814 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 38,835 | 37,892 |
Net (gain) loss on sale of assets | 136 | -230 |
Stock-based compensation | 6,330 | 5,379 |
Excess tax benefits from stock-based compensation | -2,163 | -4,397 |
Deferred income taxes | -2,306 | -3,412 |
Loss on derivatives reclassified from accumulated comprehensive earnings into earnings | 49 | 86 |
Changes in operating assets and liabilities, net of business acquisitions: | ' | ' |
Accounts receivable | 59,408 | 25,709 |
Inventories | -27,698 | -24,626 |
Accounts payable and accrued liabilities | -23,884 | -16,709 |
Current income taxes | 15,158 | 5,814 |
Retirement benefit obligations | -2,486 | -2,789 |
Other | -4,916 | 456 |
Net cash provided by operating activities | 124,644 | 92,987 |
Cash flows from investing activities: | ' | ' |
Payments for purchase of property, plant and equipment | -68,560 | -47,184 |
Proceeds from sale of assets | 154 | 320 |
Business acquisitions, net of cash acquired | 0 | -198,860 |
Net cash used in investing activities | -68,406 | -245,724 |
Cash flows from financing activities: | ' | ' |
Cash dividends paid | -10,754 | -10,966 |
Proceeds from sales of treasury stock | 6,147 | 6,533 |
Payments for repurchases of common stock | -99,655 | -17,144 |
Excess tax benefits from stock compensation | 2,163 | 4,397 |
Borrowings on revolving lines of credit and short-term borrowings | 256,071 | 40,072 |
Payments on revolving lines of credit and short-term borrowings | -151,069 | -35,329 |
Proceeds from issuance of long-term debt | 250,000 | 200,000 |
Payments of long-term debt | -300,000 | -41,875 |
Payments of debt financing costs | -1,297 | 0 |
Net cash provided by (used in) financing activities | -48,394 | 145,688 |
Effect of exchange rate changes on cash and cash equivalents | 265 | -122 |
Net change in cash and cash equivalents | 8,109 | -7,171 |
Cash and cash equivalents at beginning of period | 48,556 | 61,829 |
Cash and cash equivalents at end of period | $56,665 | $54,658 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Stockholders' Equity (USD $) | Total stockholders equity | Common Stock [Member] | Additional Paid-in Capital [Member] | Total Accumulated Other Comprehensive (Loss) Earnings [Member] | Foreign Currency Translation Adjustments [Member] | Unrealized Derivative Gains (Losses) [Member] | Minimum Retirement Benefit Liability Adjustments [Member] | Deferred Compensation in Equity [Member] | Retained Earnings [Member] | Treasury Stock at Cost [Member] | Treasury Stock Held for Deferred Compensaton [Member] | Total |
In Thousands, except Share data | ||||||||||||
Balances at Sep. 30, 2012 | $1,008,115 | $106 | $97,826 | ($11,723) | $17,447 | ($376) | ($28,794) | $4,344 | $1,069,811 | ($147,905) | ($4,344) | ' |
Balance, Treasury Stock, shares at Sep. 30, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,536,000 | ' | ' |
Balance, Common Stock, shares at Sep. 30, 2012 | ' | 72,960,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -276,000 | ' |
Net earnings | 69,814 | ' | ' | ' | ' | ' | ' | ' | 69,814 | ' | ' | 69,814 |
Other Comprehensive Income (Loss), Net of Tax | -4,280 | ' | ' | -4,280 | -5,639 | 53 | 1,306 | ' | ' | ' | ' | ' |
Cash dividends paid | -10,966 | ' | ' | ' | ' | ' | ' | ' | -10,966 | ' | ' | ' |
Purchases of treasury stock | -23,235 | ' | ' | ' | ' | ' | ' | ' | ' | -23,235 | ' | ' |
Purchases of treasury stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -610,000 | ' | ' |
Sales of treasury stock | 9,083 | ' | -11,766 | ' | ' | ' | ' | ' | ' | 20,849 | ' | ' |
Sales of treasury stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 693,000 | ' | ' |
Common shares issued from treasury stock for benefit plans | 9,780 | ' | 1,923 | ' | ' | ' | ' | ' | ' | 7,857 | ' | ' |
Common shares issued from treasury stock for benefit plans, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' |
Tax benefit attributable to exercise of stock options | 4,397 | ' | 4,397 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 5,379 | ' | 5,379 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer of stock to deferred compensation plan | 94 | ' | 23 | ' | ' | ' | ' | 95 | ' | 71 | -95 | ' |
Transfer of stock to deferred compensation plan, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | -2,000 | ' |
Purchases of stock by deferred compensation plan | ' | ' | ' | ' | ' | ' | ' | 42 | ' | ' | -42 | ' |
Purchases of stock by deferred compensation plan, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,000 | ' |
Distribution of stock from deferred compensation plan | ' | ' | ' | ' | ' | ' | ' | -268 | ' | ' | 268 | ' |
Distribution of stock from deferred compensation plan, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000 | ' |
Balances at Mar. 31, 2013 | 1,068,181 | 106 | 97,782 | -16,003 | 11,808 | -323 | -27,488 | 4,213 | 1,128,659 | -142,363 | -4,213 | ' |
Balance, Treasury Stock, shares at Mar. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,201,000 | ' | ' |
Balance, Common Stock, shares at Mar. 31, 2013 | ' | 72,960,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, Treasury stock held for deferred compensation, Shares at Mar. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -256,000 | ' |
Balances at Sep. 30, 2013 | 1,142,545 | 106 | 101,147 | 15,115 | 25,742 | 43 | -10,670 | 4,007 | 1,193,887 | -167,710 | -4,007 | 1,142,545 |
Balance, Treasury Stock, shares at Sep. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,883,000 | ' | -4,883,000 |
Balance, Common Stock, shares at Sep. 30, 2013 | ' | 72,960,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,960,000 |
Balance, Preferred Stock, shares at Sep. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -232,000 | -232,000 |
Net earnings | 68,181 | ' | ' | ' | ' | ' | ' | ' | 68,181 | ' | ' | 68,181 |
Other Comprehensive Income (Loss), Net of Tax | 4,636 | ' | ' | 4,636 | 4,525 | 31 | 80 | ' | ' | ' | ' | ' |
Cash dividends paid | -10,754 | ' | ' | ' | ' | ' | ' | ' | -10,754 | ' | ' | ' |
Purchases of treasury stock | -101,241 | ' | ' | ' | ' | ' | ' | ' | ' | -101,241 | ' | ' |
Purchases of treasury stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,388,000 | ' | ' |
Sales of treasury stock | 6,862 | ' | -4,203 | ' | ' | ' | ' | ' | ' | 11,065 | ' | ' |
Sales of treasury stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 354,000 | ' | ' |
Common shares issued from treasury stock for benefit plans | 11,193 | ' | 2,837 | ' | ' | ' | ' | ' | ' | 8,356 | ' | ' |
Common shares issued from treasury stock for benefit plans, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 260,000 | ' | ' |
Tax benefit attributable to exercise of stock options | 2,046 | ' | 2,046 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 6,330 | ' | 6,330 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases of stock by deferred compensation plan | ' | ' | ' | ' | ' | ' | ' | 276 | ' | ' | -276 | ' |
Purchases of stock by deferred compensation plan, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,000 | ' |
Distribution of stock from deferred compensation plan | ' | ' | ' | ' | ' | ' | ' | -274 | ' | ' | 274 | ' |
Distribution of stock from deferred compensation plan, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000 | ' |
Balances at Mar. 31, 2014 | $1,129,798 | $106 | $108,157 | $19,751 | $30,267 | $74 | ($10,590) | $4,009 | $1,251,314 | ($249,530) | ($4,009) | $1,129,798 |
Balance, Treasury Stock, shares at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,657,000 | ' | -6,657,000 |
Balance, Common Stock, shares at Mar. 31, 2014 | ' | 72,960,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,960,000 |
Balance, Preferred Stock, shares at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Balance, Treasury stock held for deferred compensation, Shares at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -215,000 | -215,000 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
WOODWARD, INC. | |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |
(In thousands, except per share amounts) | |
(Unaudited) | |
Note 1. Basis of Presentation | |
The Condensed Consolidated Financial Statements of Woodward, Inc. (“Woodward” or the “Company”) as of March 31, 2014 and for the three and six-months ended March 31, 2014 and March 31, 2013, included herein, have not been audited by an independent registered public accounting firm. These Condensed Consolidated Financial Statements reflect all normal recurring adjustments that, in the opinion of management, are necessary to present fairly Woodward’s financial position as of March 31, 2014, and the statements of earnings, comprehensive earnings, cash flows, and changes in the statement of stockholders’ equity for the periods presented herein. The results of operations for the three and six-months ended March 31, 2014 are not necessarily indicative of the operating results to be expected for other interim periods or for the full fiscal year. Dollar amounts contained in these Condensed Consolidated Financial Statements are in thousands, except per share amounts. | |
The Condensed Consolidated Balance Sheet as of September 30, 2013 was derived from Woodward’s Annual Report on Form 10-K for the fiscal year then ended. During the three-months ended December 31, 2013, Woodward completed purchase accounting valuation estimates related to the acquisition of the Duarte Business (as defined below in Note 4, Business acquisitions) and, as a result, retrospectively adjusted the valuations of certain liabilities with a corresponding increase to goodwill and intangible assets as of the acquisition date. The retrospective adjustments amounted to approximately $12,800 and primarily relate to long-term performance obligations and other accrued liabilities. Changes since the acquisition date to the valuations of the assets and liabilities acquired resulted in insignificant changes to Woodward’s previously reported earnings and therefore prior reported earnings have not been restated. | |
The Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. | |
These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in Woodward’s most recent Annual Report on Form 10-K filed with the SEC and other financial information filed with the SEC. | |
Management is required to use estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures, in the preparation of the Condensed Consolidated Financial Statements included herein. Significant estimates in these Condensed Consolidated Financial Statements include allowances for losses on receivables, net realizable value of inventories, warranty reserves, cost of sales incentives, useful lives of property and identifiable intangible assets, the evaluation of impairments of property, valuation of identifiable intangible assets and goodwill, income tax and valuation reserves, the valuation of assets and liabilities acquired in business combinations, assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans, the valuation of stock compensation instruments granted to employees and board members, and contingencies. Actual results could vary materially from Woodward’s estimates. | |
New_Accounting_Standards
New Accounting Standards | 6 Months Ended |
Mar. 31, 2014 | |
Recent Accounting Pronouncements | ' |
New Accounting Standards | ' |
Note 2. Recent accounting pronouncements | |
From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”). | |
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements; however, the amendments require companies to provide information about the amounts reclassified out of accumulated comprehensive income by component. ASU 2013-02 requires a company to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated comprehensive income by respective line items of net income, but only if the amount so reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, a company is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 is effective prospectively for annual reporting periods beginning after December 15, 2012 (fiscal year 2014 for Woodward). The disclosure requirement of ASU 2013-02, which we have adopted, had no material impact on Woodward’s Consolidated Financial Statements. | |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
Note 3. Earnings per share | ||||||||||||||
Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. | ||||||||||||||
Diluted earnings per share reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options. | ||||||||||||||
The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share: | ||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net earnings | $ | 44,798 | $ | 42,446 | $ | 68,181 | $ | 69,814 | ||||||
Denominator: | ||||||||||||||
Basic shares outstanding | 66,633 | 68,737 | 67,182 | 68,597 | ||||||||||
Dilutive effect of stock options and restricted stock | 1,272 | 1,198 | 1,281 | 1,234 | ||||||||||
Diluted shares outstanding | 67,905 | 69,935 | 68,463 | 69,831 | ||||||||||
Income per common share: | ||||||||||||||
Basic earnings per share | $ | 0.67 | $ | 0.62 | $ | 1.01 | $ | 1.02 | ||||||
Diluted earnings per share | $ | 0.66 | $ | 0.61 | $ | 1.00 | $ | 1.00 | ||||||
The following stock option grants were outstanding during the three and six-months ended March 31, 2014 and 2013, but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive: | ||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Options | 720 | 722 | 244 | 70 | ||||||||||
Weighted-average option price | $ | 41.02 | $ | 34.05 | $ | 41.08 | $ | 37.48 | ||||||
The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following: | ||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Weighted-average treasury stock shares held for deferred compensation obligations | 225 | 266 | 228 | 270 | ||||||||||
Business_Acquisitions
Business Acquisitions | 6 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Business Combinations | ' | |||||||||||
Business Acquisitions | ' | |||||||||||
Note 4. Business acquisitions | ||||||||||||
Duarte Business Acquisition | ||||||||||||
On December 27, 2012, Woodward entered into a definitive asset purchase agreement (the “Asset Purchase Agreement”) with GE Aviation Systems LLC (the “Seller”) and General Electric Company for the acquisition of substantially all of the assets and certain liabilities related to the Seller’s thrust reverser actuation systems business located in Duarte, California (the “Duarte Business”) for an aggregate purchase price of $200,000. The acquisition was completed on December 28, 2012 and, based on customary purchase price adjustments, Woodward paid cash at closing in the amount of $198,900. Woodward and the Seller have finalized the purchase price adjustment based on the customary post-closing provisions of the Asset Purchase Agreement. | ||||||||||||
The purchase price of the Duarte Business was as follows: | ||||||||||||
Cash paid to Seller | $ | 198,900 | ||||||||||
Less cash acquired | -40 | |||||||||||
Total purchase price | $ | 198,860 | ||||||||||
The allocation of the purchase price to the assets acquired and liabilities assumed was accounted for under the purchase method of accounting in accordance with ASC Topic 805, “Business Combinations.” Assets acquired and liabilities assumed in the transaction were allocated and recorded at their estimated acquisition date fair values using management’s best estimate based on available data. Transaction costs associated with the acquisition were expensed as incurred. The Company incurred transaction costs of $1,707 for the three and six-months ended March 31, 2013, which are included in “Selling, general and administrative expenses” in the Condensed Consolidated Statements of Earnings. No additional transaction costs were incurred in the three and six-months ended March 31, 2014. | ||||||||||||
During the three-months ended December 31, 2013, Woodward completed its purchase accounting valuation estimates and, as a result, retrospectively adjusted the valuations of certain liabilities with a corresponding increase to goodwill and intangible assets as of the acquisition date. The retrospective adjustments amounted to approximately $12,800 and primarily relate to long-term performance obligations and other accrued liabilities. Changes since the acquisition date to the valuations of the assets and liabilities acquired resulted in insignificant changes to Woodward’s previously reported earnings and therefore prior reported earnings have not been restated. The allocation of the purchase price to the assets and liabilities assumed was finalized as of December 27, 2013. | ||||||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition of the Duarte Business: | ||||||||||||
Accounts receivable | $ | 14,245 | ||||||||||
Inventories | 30,149 | |||||||||||
Other current assets | 10,370 | |||||||||||
Property, plant, and equipment | 11,804 | |||||||||||
Goodwill | 98,310 | |||||||||||
Intangible assets | 89,700 | |||||||||||
Other noncurrent assets | 18,097 | |||||||||||
Total assets acquired | 272,675 | |||||||||||
Other current liabilities | 32,509 | |||||||||||
Other noncurrent liabilities | 41,306 | |||||||||||
Total liabilities assumed | 73,815 | |||||||||||
Net assets acquired | $ | 198,860 | ||||||||||
Goodwill recorded in connection with the acquisition of the Duarte Business, which is deductible for income tax purposes, represents the estimated value of potential expansion with new customers, the opportunity to further develop sales opportunities with new and acquired Duarte Business customers, and other synergies expected to be achieved through the integration of the Duarte Business into Woodward’s Aerospace segment. | ||||||||||||
A summary of the estimated intangible assets acquired, weighted-average useful lives, and amortization methods follows: | ||||||||||||
Estimated Amounts | Weighted-Average Useful Life | Amortization Method | ||||||||||
Customer relationships and contracts | $ | 77,000 | 20 | years | Straight-line | |||||||
Process technology | 5,000 | 25 | years | Straight-line | ||||||||
Backlog | 7,700 | 3 | years | Accelerated | ||||||||
Total | $ | 89,700 | ||||||||||
Assumed liabilities include $4,758 and $17,939 of current and long-term performance obligations, respectively, for contractual commitments that are expected to result in future economic losses. | ||||||||||||
The Asset Purchase Agreement included commitments for the Duarte Business to continue to provide services to the Seller unrelated to the core business acquired, for which Woodward will continue to be paid by the Seller. Assumed liabilities include $12,985 and $23,215 of current and long-term performance obligations, respectively, for services to be provided to the Seller, offset by $8,103 and $18,097 of current and long-term assets, respectively, related to contractual payments due from the Seller. | ||||||||||||
Net sales for the Duarte Business subsequent to the date it was acquired by Woodward were $37,701 and $69,133 for the three and six-months ended March 31, 2014, respectively, and $35,090 for both the three and six-months ended March 31, 2013. Earnings of the Duarte Business subsequent to the date it was acquired by Woodward for the three and six-months ended March 31, 2014 cannot be determined on a stand-alone basis due to the integration of the Duarte Business into Woodward’s Aerospace segment. Earnings of the Duarte Business subsequent to the date it was acquired by Woodward for the three and six-months ended March 31, 2013 were slightly accretive to the consolidated net earnings of Woodward. Due to the timing of the acquisition, there were no net sales or operating expenses from the Duarte Business included in the Condensed Consolidated Statements of Earnings for the three-months ended December 31, 2012. | ||||||||||||
Pro forma results for Woodward giving effect to the acquisition of the Duarte Business | ||||||||||||
The following unaudited pro forma financial information presents the combined results of operations of Woodward and the Duarte Business as if the acquisition had occurred as of October 1, 2011, the beginning of fiscal year 2012. The pro forma information is presented for information purposes only and is not indicative of the results of operations that would have been achieved if the acquisition and the borrowings used to finance it had taken place at the beginning of fiscal year 2012. The pro forma information combines the historical results of Woodward with the historical results of the Duarte Business for that period. | ||||||||||||
Prior to the acquisition of the Duarte Business, the Duarte Business was a wholly owned business of the Seller, and as such was not a stand-alone entity for financial reporting purposes. Accordingly, the historical operating results of the Duarte Business may not be indicative of the results that might have been achieved, historically or in the future, if the Duarte Business had been a stand-alone entity. The unaudited pro forma results for the three and six-months ended March 31, 2014 and March 31, 2013 include amortization charges for acquired intangible assets, eliminations of intercompany transactions, adjustments for depreciation expense for property, plant and equipment, adjustments for acquired performance obligations, transaction costs incurred, adjustments to interest expense, and related tax effects. | ||||||||||||
The unaudited pro forma results for the three and six-month periods ended March 31, 2014 and March 31, 2013, compared to the actual results reported in these Condensed Consolidated Financial Statements, were as follows: | ||||||||||||
Three-Months Ended March 31, 2014 | Three-Months Ended March 31, 2013 | |||||||||||
As reported | Pro forma | As reported | Pro forma | |||||||||
Net sales | $ | 482,467 | $ | 482,467 | $ | 485,513 | $ | 485,513 | ||||
Net earnings | 44,798 | 45,138 | 42,446 | 45,532 | ||||||||
Earnings per share: | ||||||||||||
Basic earnings per share | $ | 0.67 | $ | 0.68 | $ | 0.62 | $ | 0.66 | ||||
Diluted earnings per share | 0.66 | 0.66 | 0.61 | 0.65 | ||||||||
Six-Months Ended March 31, 2014 | Six-Months Ended March 31, 2013 | |||||||||||
As reported | Pro forma | As reported | Pro forma | |||||||||
Net sales | $ | 911,509 | $ | 911,509 | $ | 893,852 | $ | 924,252 | ||||
Net earnings | 68,181 | 68,770 | 69,814 | 73,970 | ||||||||
Earnings per share: | ||||||||||||
Basic earnings per share | $ | 1.01 | $ | 1.02 | $ | 1.02 | $ | 1.08 | ||||
Diluted earnings per share | 1.00 | 1.00 | 1.00 | 1.06 | ||||||||
Financial_Instruments_and_Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Financial Instruments and Fair Value Measurments | ' | ||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements | ' | ||||||||||||||||||||||||
Note 5. Financial instruments and fair value measurements | |||||||||||||||||||||||||
Financial assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are categorized based upon a fair value hierarchy established by U.S. GAAP, which prioritizes the inputs used to measure fair value into the following levels: | |||||||||||||||||||||||||
Level 1: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. | |||||||||||||||||||||||||
Level 2: Quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data. | |||||||||||||||||||||||||
Level 3: Inputs reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. | |||||||||||||||||||||||||
The table below presents information about Woodward’s financial assets that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value. Woodward had no financial liabilities required to be measured at fair value on a recurring basis as of March 31, 2014 or September 30, 2013. | |||||||||||||||||||||||||
At March 31, 2014 | At September 30, 2013 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Cash | $ | 36,512 | $ | - | $ | - | $ | 36,512 | $ | 35,839 | $ | - | $ | - | $ | 35,839 | |||||||||
Investments in money market funds | 10,078 | - | - | 10,078 | 2,950 | - | - | 2,950 | |||||||||||||||||
Investments in reverse repurchase agreements | 10,075 | - | - | 10,075 | 9,767 | - | - | 9,767 | |||||||||||||||||
Equity securities | 9,502 | - | - | 9,502 | 8,285 | - | - | 8,285 | |||||||||||||||||
Total financial assets | $ | 66,167 | $ | - | $ | - | $ | 66,167 | $ | 56,841 | $ | - | $ | - | $ | 56,841 | |||||||||
Investments in money market funds: Woodward sometimes invests excess cash in money market funds not insured by the Federal Deposit Insurance Corporation (“FDIC”). Woodward believes that the investments in money market funds are on deposit with creditworthy financial institutions and that the funds are highly liquid. The investments in money market funds are reported at fair value, with realized gains from interest income realized in earnings and are included in “Cash and cash equivalents.” The fair values of Woodward’s investments in money market funds are based on the quoted market prices for the net asset value of the various money market funds. | |||||||||||||||||||||||||
Investments in reverse repurchase agreements: Woodward sometimes invests excess cash in reverse repurchase agreements. Under the terms of Woodward’s reverse repurchase agreements, Woodward purchases an interest in a pool of securities and is granted a security interest in those securities by the counterparty to the reverse repurchase agreement. At an agreed upon date, generally the next business day, the counterparty repurchases Woodward’s interest in the pool of securities at a price equal to what Woodward paid to the counterparty plus a rate of return determined daily per the terms of the reverse repurchase agreement. Woodward believes that the investments in these reverse repurchase agreements are with creditworthy financial institutions and that the funds invested are highly liquid. The investments in reverse repurchase agreements are reported at fair value, with realized gains from interest income realized in earnings, and are included in “Cash and cash equivalents.” Since the investments are generally overnight, the carrying value is considered to be equal to the fair value as the amount is deemed to be a cash deposit with no risk of change in value as of the end of each fiscal quarter. | |||||||||||||||||||||||||
Equity securities: Woodward holds marketable equity securities, through investments in various mutual funds, related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net.” The trading securities are included in “Other assets.” The fair values of Woodward’s trading securities are based on the quoted market prices for the net asset value of the various mutual funds. | |||||||||||||||||||||||||
The estimated fair values and carrying costs of financial instruments that are not required to be remeasured at fair value in the Condensed Consolidated Balance Sheets were as follows: | |||||||||||||||||||||||||
At March 31, 2014 | At September 30, 2013 | ||||||||||||||||||||||||
Fair Value Hierarchy Level | Estimated Fair Value | Carrying Cost | Estimated Fair Value | Carrying Cost | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Notes receivable from municipalities | 2 | 15,782 | 14,978 | 6,718 | 8,114 | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Short-term borrowings | 2 | -21,000 | -21,000 | - | - | ||||||||||||||||||||
Long-term debt, including current portion | 2 | -621,175 | -584,000 | -588,297 | -550,000 | ||||||||||||||||||||
In fiscal years 2013 and 2014, Woodward received long-term notes from a municipality within the state of Illinois in connection with certain economic incentives related to Woodward’s development of a second campus in the greater-Rockford, Illinois area for its aerospace business. The fair value of the long-term notes was estimated based on a model that discounted future principal and interest payments received at an interest rate available to the Company at the end of the period for similarly rated municipal notes of similar maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the long-term notes were 3.5% at March 31, 2014 and 4.3% at September 30, 2013. | |||||||||||||||||||||||||
In fiscal year 2013, Woodward received a long-term note from a municipality within the state of Colorado in connection with certain economic incentives related to Woodward’s development of a new campus at its corporate headquarters in Fort Collins, Colorado. The fair value of the long-term note was estimated based on a model that discounted future principal and interest payments received at an interest rate available to the Company at the end of the period for similarly rated municipality notes of similar maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the long-term note were 3.5% at March 31, 2014 and 4.3% at September 30, 2013. | |||||||||||||||||||||||||
The fair values of short-term borrowings at variable interest rates are assumed to be equal to their carrying amounts because such borrowings are expected to be repaid or settled for their carrying amounts within a short period of time. | |||||||||||||||||||||||||
The fair value of long-term debt was estimated based on a model that discounted future principal and interest payments at interest rates available to the Company at the end of the period for similar debt of the same maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The weighted-average interest rates used to estimate the fair value of long-term debt were 2.6% and 2.0% as of March 31, 2014 and September 30, 2013, respectively. | |||||||||||||||||||||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||
Note 6. Derivative instruments and hedging activities | |||||||||||||
Woodward is exposed to global market risks, including the effect of changes in interest rates, foreign currency exchange rates, changes in certain commodity prices and fluctuations in various producer indices. From time to time, Woodward enters into derivative instruments for risk management purposes only, including derivatives designated as accounting hedges and/or those utilized as economic hedges. Woodward uses interest rate related derivative instruments to manage its exposure to fluctuations of interest rates. Woodward does not enter into or issue derivatives for trading or speculative purposes. | |||||||||||||
By using derivative and/or hedging instruments to manage its risk exposure, Woodward is subject, from time to time, to credit risk and market risk on those derivative instruments. Credit risk arises from the potential failure of the counterparty to perform under the terms of the derivative and/or hedging instrument. When the fair value of a derivative contract is positive, the counterparty owes Woodward, which creates credit risk for Woodward. Woodward mitigates this credit risk by entering into transactions with only creditworthy counterparties. Market risk arises from the potential adverse effects on the value of derivative and/or hedging instruments that result from a change in interest rates, commodity prices, or foreign currency exchange rates. Woodward minimizes this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. | |||||||||||||
Woodward did not enter into any derivatives or hedging transactions during the three or six-months ended March 31, 2014 and March 31, 2013. | |||||||||||||
The remaining unrecognized gains and losses in Woodward’s Condensed Consolidated Balance Sheets associated with derivative instruments that were previously entered into by Woodward, which are classified in accumulated other comprehensive losses (“accumulated OCI”), were net gains of $120 and $71 as of March 31, 2014 and September 30, 2013, respectively. | |||||||||||||
The following table discloses the impact of derivative instruments in cash flow hedging relationships on Woodward’s Condensed Consolidated Statements of Earnings, recognized in interest expense: | |||||||||||||
Three-Months Ended March 31, | Six-Months Ended March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Amount of (Income) Expense Recognized in Earnings on Derivative | $ | 24 | $ | 43 | $ | 49 | $ | 86 | |||||
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | - | - | - | - | |||||||||
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | 24 | 43 | 49 | 86 | |||||||||
Based on the carrying value of the realized but unrecognized gains and losses on terminated derivative instruments designated as cash flow hedges as of March 31, 2014, Woodward expects to reclassify $99 of net unrecognized losses on terminated derivative instruments from accumulated other comprehensive earnings to earnings during the next twelve months. | |||||||||||||
Supplemental_Statements_of_Cas
Supplemental Statements of Cash Flows Information | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Supplemental Statements of Cash Flows Information | ' | ||||||
Supplemental Statements of Cash Flows Information | ' | ||||||
Note 7. Supplemental statement of cash flows information | |||||||
Six-Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Interest paid, net of amounts capitalized | $ | 13,465 | $ | 12,945 | |||
Income taxes paid | 14,343 | 16,765 | |||||
Income tax refunds received | 1,330 | 2,905 | |||||
Non-cash activities: | |||||||
Purchases of property, plant and equipment on account | 8,899 | 2,868 | |||||
Common shares issued from treasury for benefit plans (Note 18) | 11,193 | 9,780 | |||||
Notes receivable from municipalities for economic development incentives | 6,596 | 2,064 | |||||
Cashless exercise of stock options | 715 | 2,645 | |||||
Settlement of receivable through cashless acquisition of treasury shares in | 871 | 3,447 | |||||
connection with the cashless exercise of stock options | |||||||
Accounts_Receivable
Accounts Receivable | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Accounts Receivable Disclosure | ' | ||||||
Accounts Receivable | ' | ||||||
Note 8. Accounts receivable | |||||||
Almost all Woodward’s sales are made on credit and result in accounts receivable, which are recorded at the amount invoiced. In the normal course of business, not all accounts receivable are collected and, therefore, an allowance for losses of accounts receivable is provided equal to the amount that Woodward believes ultimately will not be collected. In establishing the amount of the allowance, customer-specific information is considered related to delinquent accounts, past loss experience, bankruptcy filings, deterioration in the customer’s operating results or financial position, and current economic conditions. Accounts receivable losses are deducted from the allowance, and the related accounts receivable balances are written off when the receivables are deemed uncollectible. Recoveries of accounts receivable previously written off are recognized when received. | |||||||
Consistent with business practice common in China, Woodward’s Chinese subsidiary accepts from Chinese customers, in settlement of certain customer accounts receivable, bank drafts issued by creditworthy Chinese banks. Bank drafts are financial instruments issued by Chinese financial institutions as part of financing arrangements between the financial institution and a customer of the financial institution. Bank drafts represent a commitment by the issuing financial institution to pay a certain amount of money at a specified future maturity date to the legal owner of the bank draft as of the maturity date. The maturity date of bank drafts varies, but it is Woodward’s policy to only accept bank drafts with maturity dates no more than 180 days from the date of Woodward’s receipt of such draft. The issuing financial institution is the obligor, not Woodward’s customers. Upon Woodward’s acceptance of a bank draft from a customer, such customer has no further obligation to pay Woodward for the related accounts receivable balance. Woodward only accepts bank drafts issued by creditworthy banks as to which the credit risk associated with the bank draft is assessed to be minimal. | |||||||
The composition of Woodward’s accounts receivable at March 31, 2014 and September 30, 2013 follows: | |||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
Accounts receivable from: | |||||||
Customers | $ | 271,440 | $ | 308,111 | |||
Other (Chinese financial institutions) | 49,052 | 72,954 | |||||
$ | 320,492 | $ | 381,065 | ||||
Inventories
Inventories | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Inventories | ' | ||||||
Inventories | ' | ||||||
Note 9. Inventories | |||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
Raw materials | $ | 65,399 | $ | 67,599 | |||
Work in progress | 93,471 | 87,808 | |||||
Component parts (1) | 251,065 | 229,508 | |||||
Finished goods | 48,798 | 46,829 | |||||
$ | 458,733 | $ | 431,744 | ||||
Component parts include items that can be sold separately as finished goods or included in the manufacture of other products. | |||||||
Property_Plant_and_Equipment_N
Property, Plant, and Equipment, Net | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Property, Plant, and Equipment, Net | ' | ||||||||||||
Property, Plant and Equipment, Net | ' | ||||||||||||
Note 10. Property, plant, and equipment | |||||||||||||
March 31, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Land and land improvements | $ | 57,540 | $ | 57,562 | |||||||||
Buildings and improvements | 199,314 | 195,008 | |||||||||||
Leasehold improvements | 20,682 | 18,924 | |||||||||||
Machinery and production equipment | 320,319 | 305,692 | |||||||||||
Computer equipment and software | 101,726 | 97,538 | |||||||||||
Office furniture and equipment | 24,399 | 24,400 | |||||||||||
Other | 18,849 | 14,197 | |||||||||||
Construction in progress | 125,761 | 81,428 | |||||||||||
868,590 | 794,749 | ||||||||||||
Less accumulated depreciation | -467,540 | -444,701 | |||||||||||
Property, plant and equipment, net | $ | 401,050 | $ | 350,048 | |||||||||
Woodward is developing a second campus in the greater-Rockford, Illinois area for its aerospace business in order to address the growth expected over the next ten years and beyond and to support a substantial number of recently awarded new system platforms, particularly on narrow-body aircraft. Included in construction in progress at March 31, 2014 and September 30, 2013 are $36,201 and $15,691, respectively, of costs associated with the construction of the second campus, including $1,262 and $444, respectively, of capitalized interest. | |||||||||||||
Woodward is also developing a new campus at its corporate headquarters in Fort Collins, Colorado to support the continued growth of its energy business by supplementing its existing Colorado manufacturing facilities and corporate headquarters. Included in construction in progress at March 31, 2014 and September 30, 2013 are $18,141 and $10,514, respectively, of costs associated with the construction of the new campus, including $864 and $394, respectively, of capitalized interest. | |||||||||||||
In addition, in September 2013, Woodward invested in a building site in Niles, Illinois. Woodward is building a new facility on this site for its aerospace business and will relocate some of its operations currently residing in nearby Skokie, Illinois to this new facility. Included in construction in progress at March 31, 2014 and September 30, 2013 are $18,887 and $12,067, respectively, of costs associated with the construction of the new facility, including $365 and $0 respectively, of capitalized interest. | |||||||||||||
For the three and six-months ended March 31, 2014 and March 31, 2013, Woodward recorded depreciation expense of the following: | |||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Depreciation expense | $ | 11,062 | $ | 10,139 | $ | 21,694 | $ | 20,412 | |||||
For the three and six-months ended March 31, 2014 and March 31, 2013, Woodward had capitalized interest that would have otherwise been included in interest expense of the following: | |||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Capitalized interest | $ | 1,314 | $ | 88 | $ | 2,289 | $ | 188 | |||||
Goodwill
Goodwill | 6 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Goodwill Disclosure | ' | |||||||||
Goodwill | ' | |||||||||
Note 11. Goodwill | ||||||||||
30-Sep-13 | Effects of Foreign Currency Translation | 31-Mar-14 | ||||||||
Aerospace | $ | 455,107 | $ | 225 | $ | 455,332 | ||||
Energy | 106,351 | 934 | 107,285 | |||||||
Consolidated | $ | 561,458 | $ | 1,159 | $ | 562,617 | ||||
Woodward tests goodwill for impairment at the reporting unit level on an annual basis and more often if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Based on the relevant U.S. GAAP authoritative guidance, Woodward sometimes aggregates components of a single operating segment into a reporting unit, if appropriate. The impairment tests consist of comparing the implied fair value of each reporting unit with its carrying amount including goodwill. If the carrying amount of the reporting unit exceeds its implied fair value, Woodward compares the implied fair value of goodwill with the recorded carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value of goodwill, an impairment loss would be recognized to reduce the carrying amount to its implied fair value. | ||||||||||
Woodward completed its annual goodwill impairment test as of July 31, 2013 during the quarter ended September 30, 2013. At that date, Woodward determined it was appropriate to aggregate certain components of the same operating segment into a single aggregated reporting unit. The fair value of each of Woodward’s reporting units was determined using a discounted cash flow method. This method represents a Level 3 input and incorporates various estimates and assumptions, the most significant being projected revenue growth rates, earnings margins, and the present value, based on the discount rate and terminal growth rate, of forecasted cash flows. Management projects revenue growth rates, earnings margins and cash flows based on each reporting unit’s current operational results, expected performance and operational strategies over a five or ten-year period. These projections are adjusted to reflect current economic conditions and demand for certain products, and require considerable management judgment. | ||||||||||
Forecasted cash flows used in the July 31, 2013 impairment test were discounted using weighted-average cost of capital assumptions ranging from 8.85% to 10.32%. The terminal values of the forecasted cash flows were calculated using the Gordon Growth Model and assumed an annual compound growth rate after five or ten years of 4.25% or 4.50%. These inputs, which are unobservable in the market, represent management’s best estimate of what market participants would use in determining the present value of the Company’s forecasted cash flows. Changes in these estimates and assumptions can have a significant impact on the fair value of forecasted cash flows. Woodward evaluated the reasonableness of the reporting unit’s resulting fair values utilizing a market multiple method. | ||||||||||
The results of Woodward’s goodwill impairment tests performed as of July 31, 2013 indicated the estimated fair value of each reporting unit was substantially in excess of its carrying value, and accordingly, no impairment existed. | ||||||||||
During the three and six-months ended March 31, 2014 there were no events or changes in operation that triggered a need to assess goodwill for possible impairment. As part of the Company’s ongoing monitoring efforts, Woodward will continue to consider the global economic environment and its potential impact on Woodward’s business in assessing goodwill for possible indications of impairment. There can be no assurance that Woodward’s estimates and assumptions regarding forecasted cash flows of certain reporting units, the current economic environment, or the other inputs used in forecasting the present value of forecasted cash flows will prove to be accurate projections of future performance. | ||||||||||
Intangible_Assets_Net
Intangible Assets, Net | 6 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Intangible Assets, Net | ' | |||||||||||||||||
Intangible Assets, Net | ' | |||||||||||||||||
Note 12. Intangible assets, net | ||||||||||||||||||
31-Mar-14 | 30-Sep-13 | |||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Amount | Gross Carrying Value | Accumulated Amortization | Net Carrying Amount | |||||||||||||
Customer relationships and contracts: | ||||||||||||||||||
Aerospace | $ | 282,270 | $ | -87,319 | $ | 194,951 | $ | 282,225 | $ | -77,288 | $ | 204,937 | ||||||
Energy | 42,111 | -31,260 | 10,851 | 42,008 | -29,711 | 12,297 | ||||||||||||
Total | $ | 324,381 | $ | -118,579 | $ | 205,802 | $ | 324,233 | $ | -106,999 | $ | 217,234 | ||||||
Intellectual property: | ||||||||||||||||||
Aerospace | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
Energy | 20,310 | -15,476 | 4,834 | 20,218 | -14,722 | 5,496 | ||||||||||||
Total | $ | 20,310 | $ | -15,476 | $ | 4,834 | $ | 20,218 | $ | -14,722 | $ | 5,496 | ||||||
Process technology: | ||||||||||||||||||
Aerospace | $ | 76,740 | $ | -29,039 | $ | 47,701 | $ | 76,718 | $ | -26,129 | $ | 50,589 | ||||||
Energy | 23,609 | -12,551 | 11,058 | 23,458 | -11,699 | 11,759 | ||||||||||||
Total | $ | 100,349 | $ | -41,590 | $ | 58,759 | $ | 100,176 | $ | -37,828 | $ | 62,348 | ||||||
Other intangibles: | ||||||||||||||||||
Aerospace | $ | 47,364 | $ | -45,680 | $ | 1,684 | $ | 47,351 | $ | -44,572 | $ | 2,779 | ||||||
Energy | 2,665 | -1,857 | 808 | 2,631 | -1,713 | 918 | ||||||||||||
Total | $ | 50,029 | $ | -47,537 | $ | 2,492 | $ | 49,982 | $ | -46,285 | $ | 3,697 | ||||||
Total intangibles: | ||||||||||||||||||
Aerospace | $ | 406,374 | $ | -162,038 | $ | 244,336 | $ | 406,294 | $ | -147,989 | $ | 258,305 | ||||||
Energy | 88,695 | -61,144 | 27,551 | 88,315 | -57,845 | 30,470 | ||||||||||||
Consolidated Total | $ | 495,069 | $ | -223,182 | $ | 271,887 | $ | 494,609 | $ | -205,834 | $ | 288,775 | ||||||
For the three and six-months ended March 31, 2014 and March 31, 2013, Woodward recorded amortization expense of the following: | ||||||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||||||
March 31, | March 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Amortization expense | $ | 8,657 | $ | 9,813 | $ | 17,141 | $ | 17,480 | ||||||||||
Future amortization expense associated with intangibles is expected to be: | ||||||||||||||||||
Year Ending September 30: | ||||||||||||||||||
2014 (remaining) | $ | 16,451 | ||||||||||||||||
2015 | 29,451 | |||||||||||||||||
2016 | 27,747 | |||||||||||||||||
2017 | 25,975 | |||||||||||||||||
2018 | 25,146 | |||||||||||||||||
Thereafter | 147,117 | |||||||||||||||||
$ | 271,887 | |||||||||||||||||
Credit_Facilities_Shortterm_Bo
Credit Facilities, Short-term Borrowings and Long-term Debt | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Debt Disclosure | ' | ||||||
Credit Facilities, Short-term Borrowings and Long-term Debt | ' | ||||||
Note 13. Credit facilities, short-term borrowings and long-term debt | |||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
Revolving credit facility - Floating rate (LIBOR plus 0.85% - 1.65%), due July 2018, unsecured | $ | 105,000 | $ | - | |||
Series B notes – 5.63%, due October 2013; unsecured | - | 100,000 | |||||
Series C notes – 5.92%, due October 2015; unsecured | 50,000 | 50,000 | |||||
Series D notes – 6.39%, due October 2018; unsecured | 100,000 | 100,000 | |||||
Series E notes – 7.81%, due April 2016; unsecured | 57,000 | 57,000 | |||||
Series F notes – 8.24%, due April 2019; unsecured | 43,000 | 43,000 | |||||
Series G notes – 3.42%, due November 2020; unsecured | 50,000 | - | |||||
Series H notes – 4.03%, due November 2023; unsecured | 25,000 | - | |||||
Series I notes – 4.18%, due November 2025; unsecured | 25,000 | - | |||||
Series J notes – Floating rate (LIBOR plus 1.25%), due November 2020; unsecured | 50,000 | - | |||||
Series K notes – 4.03%, due November 2023; unsecured | 50,000 | - | |||||
Series L notes – 4.18%, due November 2025; unsecured | 50,000 | - | |||||
Long-term borrowings under Line of Credit - Variable rate of 1.06% at September 30, 2013; unsecured | - | 200,000 | |||||
Total debt | 605,000 | 550,000 | |||||
Less: short-term borrowings and the current portion of long-term debt | -21,000 | -100,000 | |||||
Long-term debt, excluding current portion | $ | 584,000 | $ | 450,000 | |||
Woodward maintains a $600,000 revolving credit facility established under a revolving credit agreement between Woodward and a syndicate of lenders led by Wells Fargo Bank, National Association, as administrative agent (the “Revolving Credit Agreement”). The Revolving Credit Agreement provides for the option to increase available borrowings to up to $800,000, subject to lenders’ participation, and matures in July 2018. Borrowings under the Revolving Credit Agreement generally bear interest at LIBOR plus 0.85% to 1.65%. Under the Revolving Credit Agreement, there were $105,000 borrowings outstanding as of March 31, 2014, at an effective interest rate of 1.2%, and no borrowings outstanding as of September 30, 2013. Of the $105,000 of outstanding borrowings as of March 31, 2014, $84,000 was classified as long-term. | |||||||
The Revolving Credit Agreement contains certain covenants customary with such agreements, which are generally consistent with the covenants applicable to Woodward’s long-term debt agreements, and contains customary events of default, including certain cross default provisions related to Woodward’s other outstanding debt arrangements in excess of $60,000, the occurrence of which would permit the lenders to accelerate the amounts due thereunder. In addition, the Revolving Credit Agreement includes the following financial covenants: (i) a maximum permitted leverage ratio of consolidated net debt to consolidated earnings before interest, taxes, depreciation, stock-based compensation, and amortization, plus any usual non-cash charges to the extent deducted in computing net income minus any usual non-cash gains to the extent added in computing net income (“Leverage Ratio”) for Woodward and its consolidated subsidiaries not to exceed 3.5 to 1.0, which ratio, subject to certain restrictions, may increase to 4.0 to 1.0 for the fiscal quarter (and the immediately following fiscal quarter) during which a permitted acquisition occurs and to 3.75 to 1.0 for the next two succeeding fiscal quarters, and (ii) a minimum consolidated net worth of $800,000, plus 50% of Woodward’s positive net income for the prior fiscal year and plus 50% of Woodward’s net cash proceeds resulting from certain issuances of stock, subject to certain adjustments. | |||||||
Woodward’s obligations under the Revolving Credit Agreement are guaranteed by Woodward FST, Inc., Woodward MPC, Inc., and Woodward HRT, Inc., each of which is a wholly owned subsidiary of Woodward. | |||||||
In October 2008, Woodward entered into a note purchase agreement (the “2008 Note Purchase Agreement”) relating to the Series B, C, and D Notes (the “2008 Notes”). In April 2009, Woodward entered into a note purchase agreement (the “2009 Note Purchase Agreement”) relating to the Series E and F Notes (the “2009 Notes”). | |||||||
On October 1, 2013, Woodward entered into a note purchase agreement (the “2013 Note Purchase Agreement” and, together with the 2008 Note Purchase Agreement and the 2009 Note Purchase Agreement, the “Note Purchase Agreements”) relating to the sale by Woodward of an aggregate principal amount of $250,000 of its senior unsecured notes in a series of private placement transactions. | |||||||
Woodward issued the Series G, H and I Notes (the “First Closing Notes”) on October 1, 2013 and used the proceeds to repay all of the outstanding balance on the Series B Notes due October 1, 2013. | |||||||
Woodward issued the Series J, K and L Notes (the “Second Closing Notes” and, together with the 2008 Notes, 2009 Notes and First Closing Notes, the “Notes”) on November 15, 2013 and used the proceeds to partially repay the uncommitted line of credit as discussed below. | |||||||
Interest on the 2008 Notes, the First Closing Notes, and the Series K and L Notes is payable semi-annually on April 1 and October 1 of each year until all principal is paid. Interest on the 2009 Notes is payable semi-annually on April 15 and October 15 of each year until all principal is paid. Interest on the Series J Notes is payable quarterly on January 1, April 1, July 1 and October 1 of each year until all principal is paid. As of March 31, 2014, the Series J Notes bore interest at an effective rate of 1.49%. | |||||||
None of the Notes were registered under the Securities Act of 1933 and they may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Holders of the Notes do not have any registration rights. | |||||||
All of the issued Notes are held by multiple institutions. | |||||||
Woodward’s obligations under the Notes are guaranteed by Woodward FST, Inc., Woodward MPC, Inc., and Woodward HRT, Inc., each of which is a wholly owned subsidiary of Woodward. Woodward’s obligations under the Notes rank equal in right of payment with all of Woodward’s other unsecured unsubordinated debt, including its outstanding debt under its revolving credit facility. | |||||||
On October 1, 2013, Woodward also entered into amendments to the 2008 Note Purchase Agreement and 2009 Note Purchase Agreement that, among other things, conform certain of the affirmative and negative covenants in the 2008 Note Purchase Agreement and the 2009 Note Purchase Agreement, respectively, to the corresponding covenant provisions in the 2013 Note Purchase Agreement. | |||||||
The Note Purchase Agreements contain restrictive covenants customary for such financings, including, among other things, covenants that place limits on Woodward’s ability to incur liens on assets, incur additional debt (including a leverage or coverage based maintenance test), transfer or sell Woodward’s assets, merge or consolidate with other persons and enter into material transactions with affiliates. Under the financial covenants contained in the Note Purchase Agreements, Woodward’s priority debt may not exceed, at any time, 25% of its consolidated net worth. Woodward’s Leverage Ratio cannot exceed 4.0 to 1.0 during any material acquisition period, or 3.5 to 1.0 at any other time on a rolling four quarter basis. In the event that Woodward’s Leverage Ratio exceeds 3.5 to 1.0 during any material acquisition period, the interest rate on each series of Notes will increase. Further, Woodward’s consolidated net worth must at all times equal or exceed $800,000 plus 50% of Woodward’s consolidated net earnings for each fiscal year beginning with the fiscal year ending September 30, 2013. The Note Purchase Agreements also contain customary events of default, including certain cross-default provisions related to Woodward’s other outstanding debt arrangements in excess of $60,000, the occurrence of which would permit the holders of the respective Notes to accelerate the amounts due. | |||||||
Woodward, at its option, is permitted at any time to prepay all, or from time to time to prepay any part of, the then outstanding principal amount of any series of the Notes at 100% of the principal amount of the series of Notes to be prepaid (but, in the case of partial prepayment, not less than $1,000), together with interest accrued on such amount to be prepaid to the date of payment, plus any applicable prepayment compensation amount. The prepayment compensation amount, as to the Notes other than the floating rate Notes, is computed by discounting the remaining scheduled payments of interest and principal of the Notes being prepaid at a discount rate equal to the sum of 50 basis points and the yield to maturity of U.S. Treasury securities having a maturity equal to the remaining average life of the Notes being prepaid. The prepayment compensation amount, as to the floating rate Notes, generally is computed as a percentage of the principal amount of such floating rate Notes equal to (a) 2%, on or prior to November 15, 2014, (b) 1%, after November 15, 2014 and on or prior to November 15, 2015, and (c) 0% after November 15, 2015. | |||||||
In connection with the 2013 Note Purchase Agreement, Woodward incurred approximately $1,400 in financing costs, which will be deferred and amortized using the straight-line method over the life of the agreement. | |||||||
Required future principal payments of the Notes as of March 31, 2014 are as follows: | |||||||
Year Ending September 30: | |||||||
2014 (remaining) | $ | - | |||||
2015 | - | ||||||
2016 | 107,000 | ||||||
2017 | - | ||||||
2018 | - | ||||||
Thereafter | 393,000 | ||||||
$ | 500,000 | ||||||
In connection with the acquisition of the Duarte Business, on December 21, 2012 Woodward entered into a 364 day uncommitted line of credit with JPMorgan Chase Bank, N.A. (the “Line of Credit”). The Line of Credit provided for unsecured loans to Woodward of up to $200,000 on a revolving basis. Loans made under the Line of Credit bore interest at a floating rate based, at the Company’s option, on either the prime rate or an adjusted LIBOR. The Line of Credit was repaid in full and terminated on December 20, 2013. | |||||||
Short-term borrowings | |||||||
A Chinese subsidiary of Woodward has a local credit facility with the Hong Kong and Shanghai Banking Company under which it has the ability to borrow up to either $22,700, or the local currency equivalent of $22,700. Any cash borrowings under the local Chinese credit facility are secured by a parent guarantee from Woodward. The Chinese subsidiary may utilize the local facility for cash borrowings to support its operating cash needs. Local currency borrowings on the Chinese credit facility are charged interest at the prevailing interest rate offered by the People’s Bank of China on the date of borrowing, plus a margin equal to 25% of that prevailing rate. U.S. dollar borrowings on the credit facility are charged interest at the lender’s cost of borrowing rate at the date of borrowing, plus 3%. The Chinese subsidiary had no outstanding cash borrowings against the local credit facility at March 31, 2014 and September 30, 2013. | |||||||
Woodward also has other foreign lines of credit and foreign overdraft facilities at various financial institutions, which are generally reviewed annually for renewal and are subject to the usual terms and conditions applied by the financial institutions. Pursuant to the terms of the related facility agreements, Woodward’s foreign performance guarantee facilities are limited in use to providing performance guarantees to third parties. There were no borrowings outstanding as of March 31, 2014 and September 30, 2013 on Woodward’s other foreign lines of credit and foreign overdraft facilities. | |||||||
Accrued_Liabilities
Accrued Liabilities | 6 Months Ended | |||||
Mar. 31, 2014 | ||||||
Accrued Liabilities | ' | |||||
Accrued Liabilities | ' | |||||
Note 14. Accrued liabilities | ||||||
March 31, | September 30, | |||||
2014 | 2013 | |||||
Salaries and other member benefits | $ | 36,912 | $ | 66,212 | ||
Warranties | 16,418 | 15,224 | ||||
Interest payable | 11,951 | 11,437 | ||||
Current portion of acquired performance obligations and unfavorable contracts (1) | 23,622 | 23,977 | ||||
Accrued retirement benefits | 2,243 | 2,276 | ||||
Deferred revenues | 5,930 | 6,304 | ||||
Taxes, other than income | 9,205 | 6,504 | ||||
Other | 21,732 | 29,807 | ||||
$ | 128,013 | $ | 161,741 | |||
-1 | For more information about acquired performance obligations and unfavorable contracts, see Note 4, Business acquisitions. | |||||
Warranties | ||||||
Provisions of Woodward’s sales agreements include product warranties customary to these types of agreements. Accruals are established for specifically identified warranty issues that are probable to result in future costs. Warranty costs are accrued on a non-specific basis whenever past experience indicates a normal and predictable pattern exists. Changes in accrued product warranties were as follows: | ||||||
Six-Months Ended March 31, | ||||||
2014 | 2013 | |||||
Warranties, beginning of period | $ | 15,224 | $ | 15,742 | ||
Expense | 5,333 | 4,785 | ||||
Increases due to acquisition of Duarte Business | - | 157 | ||||
Reductions for settling warranties | -4,317 | -6,068 | ||||
Foreign currency exchange rate changes | 178 | -48 | ||||
Warranties, end of period | $ | 16,418 | $ | 14,568 | ||
Other_Liabilities
Other Liabilities | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Other Liabilities | ' | ||||||
Other Liabilities | ' | ||||||
Note 15. Other liabilities | |||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
Net accrued retirement benefits, less amounts recognized within accrued liabilities | $ | 38,409 | $ | 39,956 | |||
Total unrecognized tax benefits, net of offsetting adjustments | 15,916 | 20,343 | |||||
Acquired performance obligations and unfavorable contracts (1) | 17,030 | 23,951 | |||||
Other | 29,949 | 21,260 | |||||
$ | 101,304 | $ | 105,510 | ||||
For more information about acquired performance obligations and unfavorable contracts, see Note 4, Business acquisitions. | |||||||
Other_Income_Expense_Net
Other (Income) Expense, Net | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Other (Income) Expense, Net | ' | ||||||||||||
Other (Income) Expense, Net | ' | ||||||||||||
Note 16. Other (income) expense, net | |||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Net (gain) loss on sale of assets | $ | 165 | $ | -229 | $ | 136 | $ | -230 | |||||
Rent income | -145 | -131 | -294 | -260 | |||||||||
Net gain on investments in deferred compensation program | -145 | -417 | -573 | -526 | |||||||||
Other | -65 | -113 | -66 | -136 | |||||||||
$ | -190 | $ | -890 | $ | -797 | $ | -1,152 | ||||||
Income_Taxes
Income Taxes | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Note 17. Income taxes | |||||||||||||
U.S. GAAP requires that the interim period tax provision be determined as follows: | |||||||||||||
· | At the end of each quarter, Woodward estimates the tax that will be provided for the current fiscal year stated as a percentage of estimated “ordinary income.” The term ordinary income refers to earnings from continuing operations before income taxes, excluding significant unusual or infrequently occurring items. | ||||||||||||
The estimated annual effective rate is applied to the year-to-date ordinary income at the end of each quarter to compute the estimated year-to-date tax applicable to ordinary income. The tax expense or benefit related to ordinary income in each quarter is the difference between the most recent year-to-date and the prior quarter year-to-date computations. | |||||||||||||
· | The tax effects of significant unusual or infrequently occurring items are recognized as discrete items in the interim period in which the events occur. The impact of changes in tax laws or rates on deferred tax amounts, the effects of changes in judgment about beginning of the year valuation allowances, and changes in tax reserves resulting from the finalization of tax audits or reviews are examples of significant unusual or infrequently occurring items that are recognized as discrete items in the interim period in which the event occurs. | ||||||||||||
The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income of Woodward in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, as a global commercial enterprise, Woodward’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, changes in the estimate of the amount of undistributed foreign earnings that Woodward considers indefinitely reinvested, as well as other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. | |||||||||||||
The following table sets forth the tax expense and the effective tax rate for Woodward’s income from operations: | |||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Earnings before income taxes | $ | 56,756 | $ | 50,336 | $ | 89,700 | $ | 88,873 | |||||
Income tax expense | 11,958 | 7,890 | 21,519 | 19,059 | |||||||||
Effective tax rate | 21.1% | 15.7% | 24.0% | 21.4% | |||||||||
On January 2, 2013, the American Taxpayer Relief Act of 2012 (the “Taxpayer Relief Act”) was enacted, which retroactively extended the U.S. research and experimentation tax credit through December 31, 2013. As a result, income taxes for the three and six-months ended March 31, 2013 included a net expense reduction of $6,847 related to the retroactive impact of the U.S. research and experimentation tax credit pursuant to the Taxpayer Relief Act. | |||||||||||||
Gross unrecognized tax benefits as of March 31, 2014 and September 30, 2013 were $16,465 and $22,694, respectively. Included in the balance of unrecognized tax benefits as of March 31, 2014 and September 30, 2013 are $13,705 and $17,838, respectively, of tax benefits that, if recognized, would affect the effective tax rate. At this time, Woodward estimates that it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $379 in the next twelve months due to the completion of reviews by tax authorities and the expiration of certain statutes of limitations. Woodward accrues for potential interest and penalties related to unrecognized tax benefits in tax expense. Woodward had accrued interest and penalties of $1,542 as of March 31, 2014 and $2,066 as of September 30, 2013. | |||||||||||||
Woodward’s tax returns are audited by U.S., state, and foreign tax authorities, and these audits are at various stages of completion at any given time. Resolutions of tax matters and lapses of the applicable statutes of limitations occasionally result either in tax benefits or in additional taxes. During the three-month period ended March 31, 2014 such resolutions and lapses of statutes of limitations resulted in a net favorable amount of $5,573. With a few exceptions, Woodward’s fiscal years remaining open to examination in the U.S. include fiscal years 2010 and thereafter, and fiscal years remaining open to examination in significant foreign jurisdictions include 2005 and thereafter. | |||||||||||||
Retirement_Benefits
Retirement Benefits | 6 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Retirement Benefits - General | ' | ||||||||||||||||||
Retirement Benefits | ' | ||||||||||||||||||
Note 18. Retirement benefits | |||||||||||||||||||
Woodward provides various benefits to eligible members of the Company, including contributions to various defined contribution plans, pension benefits associated with defined benefit plans, postretirement medical benefits and postretirement life insurance benefits. Eligibility requirements and benefit levels vary depending on employee location. | |||||||||||||||||||
Defined contribution plans | |||||||||||||||||||
Most of the Company’s U.S. employees are eligible to participate in the U.S. defined contribution plan. The U.S. defined contribution plan allows employees to defer part of their annual income for income tax purposes into their personal 401(k) accounts. The Company makes contributions to eligible employee accounts, which are also deferred for employee personal income tax purposes. Certain foreign employees are also eligible to participate in foreign plans. | |||||||||||||||||||
Most of Woodward’s U.S. employees with at least two years of service receive an annual contribution of Woodward stock, equal to 5% of their eligible prior year wages, to their personal Woodward Retirement Savings Plan accounts. In the second quarter of fiscal years 2014 and 2013, Woodward fulfilled its annual Woodward stock contribution obligation using shares held in treasury stock by issuing 260 shares of common stock for a total value of $11,193 and 250 shares of common stock for a total value of $9,780, respectively. | |||||||||||||||||||
The amount of expense associated with defined contribution plans was as follows: | |||||||||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Company costs | $ | 5,393 | $ | 4,449 | $ | 10,682 | $ | 9,373 | |||||||||||
Defined benefit plans | |||||||||||||||||||
Woodward has defined benefit plans that provide pension benefits for certain retired employees in the United States, the United Kingdom, Japan, and Switzerland. Woodward also provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees and their covered dependants and beneficiaries in the United States and the United Kingdom. Life insurance benefits are provided to certain retirees in the United States under frozen plans, which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for all of Woodward’s defined benefit pension and other postretirement benefit plans. | |||||||||||||||||||
U.S. GAAP requires that, for obligations outstanding as of September 30, 2013, the funded status reported in interim periods shall be the same asset or liability recognized in the previous year end statement of financial position adjusted for (a) subsequent accruals of net periodic benefit cost that exclude the amortization of amounts previously recognized in other comprehensive income (for example, subsequent accruals of service cost, interest cost, and return on plan assets) and (b) contributions to a funded plan or benefit payments. | |||||||||||||||||||
The components of the net periodic retirement pension costs recognized are as follows: | |||||||||||||||||||
Three-Months Ended March 31, | |||||||||||||||||||
United States | Other Countries | Total | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 872 | $ | 1,107 | $ | 262 | $ | 262 | $ | 1,134 | $ | 1,369 | |||||||
Interest cost | 1,603 | 1,392 | 605 | 525 | 2,208 | 1,917 | |||||||||||||
Expected return on plan assets | -2,433 | -2,045 | -770 | -648 | -3,203 | -2,693 | |||||||||||||
Amortization of: | |||||||||||||||||||
Net actuarial (gain) loss | 82 | 343 | 163 | 115 | 245 | 458 | |||||||||||||
Prior service cost (benefit) | 18 | 18 | -1 | -2 | 17 | 16 | |||||||||||||
Net periodic retirement pension (benefit) cost | $ | 142 | $ | 815 | $ | 259 | $ | 252 | $ | 401 | $ | 1,067 | |||||||
Contributions paid | $ | 200 | $ | 1,500 | $ | 596 | $ | 443 | $ | 796 | $ | 1,943 | |||||||
Six-Months Ended March 31, | |||||||||||||||||||
United States | Other Countries | Total | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 1,744 | $ | 2,214 | $ | 521 | $ | 543 | $ | 2,265 | $ | 2,757 | |||||||
Interest cost | 3,213 | 2,784 | 1,200 | 1,073 | 4,413 | 3,857 | |||||||||||||
Expected return on plan assets | -4,867 | -4,090 | -1,527 | -1,327 | -6,394 | -5,417 | |||||||||||||
Amortization of: | |||||||||||||||||||
Net actuarial (gain) loss | 165 | 687 | 324 | 239 | 489 | 926 | |||||||||||||
Prior service cost (benefit) | 37 | 37 | -2 | -4 | 35 | 33 | |||||||||||||
Net periodic retirement pension (benefit) cost | $ | 292 | $ | 1,632 | $ | 516 | $ | 524 | $ | 808 | $ | 2,156 | |||||||
Contributions paid | $ | 300 | $ | 3,000 | $ | 2,167 | $ | 2,257 | $ | 2,467 | $ | 5,257 | |||||||
The components of the net periodic other postretirement benefit costs recognized are as follows: | |||||||||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Service cost | $ | 12 | $ | 18 | $ | 24 | $ | 36 | |||||||||||
Interest cost | 358 | 311 | 716 | 622 | |||||||||||||||
Amortization of: | |||||||||||||||||||
Net actuarial (gain) loss | -50 | -17 | -100 | -34 | |||||||||||||||
Prior service cost (benefit) | -39 | -39 | -79 | -79 | |||||||||||||||
Net periodic other postretirement (benefit) cost | $ | 281 | $ | 273 | $ | 561 | $ | 545 | |||||||||||
Contributions paid | $ | 862 | $ | 587 | $ | 1,368 | $ | 1,343 | |||||||||||
The amount of cash contributions made to these plans in any year is dependent upon a number of factors, including minimum funding requirements in the jurisdictions in which Woodward operates and arrangements made with trustees of certain foreign plans. As a result, the actual funding in fiscal year 2014 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2014 will be as follows: | |||||||||||||||||||
Retirement pension benefits: | |||||||||||||||||||
United States | $ | 200 | |||||||||||||||||
United Kingdom | 927 | ||||||||||||||||||
Japan | - | ||||||||||||||||||
Switzerland | 66 | ||||||||||||||||||
Other postretirement benefits | 2,586 | ||||||||||||||||||
Multiemployer defined benefit plans | |||||||||||||||||||
Woodward operates two multiemployer defined benefit plans for certain employees in the Netherlands and Japan. The amounts of contributions associated with the multiemployer plans were as follows: | |||||||||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Company contributions | $ | 185 | $ | 201 | $ | 375 | $ | 411 | |||||||||||
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||
Note 19. Stock-based compensation | ||||||||||||||||||||||||
Stock options | ||||||||||||||||||||||||
Woodward’s 2006 Omnibus Incentive Plan (the “2006 Plan”), which has been approved by Woodward’s stockholders, provides for the grant of up to 7,410 stock options to its employees and directors. Woodward believes that these stock options align the interests of its employees and directors with those of its stockholders. Stock option awards are granted with an exercise price equal to the market price of Woodward’s stock at the date of grant, a ten-year term, and a four-year vesting schedule at a rate of 25% per year. | ||||||||||||||||||||||||
The fair value of options granted was estimated on the date of grant using the Black-Scholes-Merton option-valuation model using the assumptions in the following table. Woodward calculates the expected term, which represents the period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant. | ||||||||||||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Expected term (years) | n/a | 5.8 | 5.8 | - | 8.6 | 5.8 | - | 8.6 | ||||||||||||||||
Estimated volatility | n/a | 54.90% | 38.50% | 48.7% | - | 54.90% | ||||||||||||||||||
Estimated dividend yield | n/a | 0.80% | 0.80% | 0.8% | - | 1.00% | ||||||||||||||||||
Risk-free interest rate | n/a | 1.00% | 1.7% | - | 2.50% | 0.8% | - | 1.30% | ||||||||||||||||
The following is a summary of the activity for stock option awards during the three and six-months ended March 31, 2014: | ||||||||||||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||||||||||||
31-Mar-14 | 31-Mar-14 | |||||||||||||||||||||||
Number of options | Weighted-Average Exercise Price per Share | Number of options | Weighted-Average Exercise Price per Share | |||||||||||||||||||||
Options, beginning balance | 4,947 | $ | 27.23 | 4,423 | $ | 25.06 | ||||||||||||||||||
Options granted | - | n/a | 694 | 40.99 | ||||||||||||||||||||
Options exercised | -197 | 13.93 | -354 | 19.39 | ||||||||||||||||||||
Options forfeited | -28 | 34.30 | -41 | 34.75 | ||||||||||||||||||||
Options, ending balance | 4,722 | 27.74 | 4,722 | 27.74 | ||||||||||||||||||||
Changes in non-vested stock options during the three and six-months ended March 31, 2014 were as follows: | ||||||||||||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||||||||||||
31-Mar-14 | 31-Mar-14 | |||||||||||||||||||||||
Number of options | Weighted-Average Exercise Price per Share | Number of options | Weighted-Average Exercise Price per Share | |||||||||||||||||||||
Options, beginning balance | 1,771 | $ | 34.75 | 1,737 | $ | 29.97 | ||||||||||||||||||
Options granted | - | n/a | 694 | 40.99 | ||||||||||||||||||||
Options vested | -36 | 32.66 | -683 | 28.82 | ||||||||||||||||||||
Options forfeited | -28 | 34.30 | -41 | 34.75 | ||||||||||||||||||||
Options, ending balance | 1,707 | 34.80 | 1,707 | 34.80 | ||||||||||||||||||||
Information about stock options that have vested, or are expected to vest, and are exercisable at March 31, 2014 was as follows: | ||||||||||||||||||||||||
Number | Weighted- Average Exercise Price | Weighted- Average Remaining Life in Years | Aggregate Intrinsic Value | |||||||||||||||||||||
Options outstanding | 4,722 | $ | 27.74 | 5.9 | $ | 65,132 | ||||||||||||||||||
Options vested and exercisable | 3,014 | 23.75 | 4.5 | 53,614 | ||||||||||||||||||||
Options vested and expected to vest | 4,596 | 27.51 | 5.9 | 64,465 | ||||||||||||||||||||
Restricted Stock | ||||||||||||||||||||||||
In the first quarter of fiscal year 2014, Woodward granted an award of 24 shares of restricted stock to its Chief Executive Officer and President, Thomas Gendron. Subject to Mr. Gendron’s continued employment by the Company, these shares of restricted stock will vest 100% following the end of the Company’s fiscal year 2017 if a cumulative earnings per share (“EPS”) target is met or exceeded for fiscal years 2014 through 2017. If this EPS target is not met, all shares of restricted stock will be forfeited by Mr. Gendron. | ||||||||||||||||||||||||
The shares of restricted stock were awarded to Mr. Gendron pursuant to a form restricted stock agreement approved by Woodward’s Compensation Committee (the “Committee”), which generally provides that: if the recipient of a restricted stock award is terminated from the Company for any reason other than death or disability during the restricted period, all shares of restricted stock will be immediately forfeited; if the recipient dies or becomes permanently disabled prior to the recipient’s termination and during the restricted period, all restrictions will lapse and the shares of restricted stock will fully vest immediately; similarly, in the event of a Change in Control (as defined in the form of restricted stock agreement) of the Company during the restricted period and prior to the recipient’s termination for any reason, all restrictions will lapse and the shares of restricted stock will fully vest immediately; during the restricted period, a recipient may exercise full voting rights with respect to the shares of restricted stock; dividends on the shares of restricted stock will accrue, but will not be paid, during the restricted period; and all dividends accrued during the restricted period will be paid upon any vesting of the shares of restricted stock, without payment of interest, provided that if the shares of restricted stock are forfeited for any reason, all accrued dividends will likewise be forfeited. The form of restricted stock agreement also includes adjustment provisions in the event the Company engages in certain recapitalization or similar transactions or in the event of a change of law or regulation. Upon vesting, shares become freely transferrable. | ||||||||||||||||||||||||
Woodward recognizes stock compensation on a straight-line basis over the requisite service period. | ||||||||||||||||||||||||
A summary of the activity for restricted stock awards in the three and six-months ended March 31, 2014 follows: | ||||||||||||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||||||||||||
31-Mar-14 | 31-Mar-14 | |||||||||||||||||||||||
Number | Fair Value per Share | Number | Fair Value per Share | |||||||||||||||||||||
Beginning balance | 24 | $ | 39.43 | - | $ | n/a | ||||||||||||||||||
Shares granted | - | n/a | 24 | 39.43 | ||||||||||||||||||||
Shares vested | - | n/a | - | n/a | ||||||||||||||||||||
Shares forfeited | - | n/a | - | n/a | ||||||||||||||||||||
Ending balance | 24 | 39.43 | 24 | 39.43 | ||||||||||||||||||||
At March 31, 2014, there was approximately $15,984 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, both stock options and restricted stock awards, granted under the 2002 Plan (for which no further grants will be made) and the 2006 Plan. The pre-vesting forfeiture rates for purposes of determining stock-based compensation cost recognized were estimated to be 0% for members of Woodward’s board of directors and 9% for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 2.1 years. | ||||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure | ' |
Commitments and Contingencies | ' |
Note 20. Commitments and contingencies | |
Woodward is currently involved in claims, pending or threatened litigation, other legal proceedings, investigations and/or regulatory proceedings arising in the normal course of business, including, among others, those relating to product liability claims, employment matters, worker’s compensation claims, contractual disputes, product warranty claims and alleged violations of various laws and regulations. Woodward accrues for known individual matters where it believes that it is probable the matter will result in a loss when ultimately resolved using estimates of the most likely amount of loss. | |
Legal costs are expensed as incurred and are classified in “Selling, general and administrative expenses” on the Condensed Consolidated Statements of Earnings. | |
Woodward is partially self-insured in the United States for healthcare and worker’s compensation up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of these claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities. | |
While the outcome of pending claims, legal and regulatory proceedings, and investigations cannot be predicted with certainty, management believes that any liabilities that may result from these claims, proceedings and investigations will not have a material effect on Woodward's liquidity, financial condition, or results of operations. | |
In the event of a change in control of Woodward, as defined in change-in-control agreements with its current corporate officers, Woodward may be required to pay termination benefits to such officers. | |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segment Information | ' | ||||||||||||
Segment Information | ' | ||||||||||||
Note 21. Segment information | |||||||||||||
Woodward serves the aerospace market and the energy market through its two reportable segments - Aerospace and Energy. Woodward’s reportable segments are aggregations of Woodward’s operating 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. | |||||||||||||
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 Ended | Six-Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Segment external net sales: | |||||||||||||
Aerospace | $ | 261,021 | $ | 270,493 | $ | 490,893 | $ | 481,882 | |||||
Energy | 221,446 | 215,020 | 420,616 | 411,970 | |||||||||
Total consolidated net sales | $ | 482,467 | $ | 485,513 | $ | 911,509 | $ | 893,852 | |||||
Segment earnings: | |||||||||||||
Aerospace | $ | 40,289 | $ | 41,223 | $ | 62,838 | $ | 72,791 | |||||
Energy | 31,888 | 24,235 | 58,959 | 48,143 | |||||||||
Total segment earnings | 72,177 | 65,458 | 121,797 | 120,934 | |||||||||
Nonsegment expenses | -9,293 | -8,174 | -19,966 | -18,725 | |||||||||
Interest expense, net | -6,128 | -6,948 | -12,131 | -13,336 | |||||||||
Consolidated earnings before income taxes | $ | 56,756 | $ | 50,336 | $ | 89,700 | $ | 88,873 | |||||
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: | |||||||||||||
31-Mar-14 | 30-Sep-13 | ||||||||||||
Segment assets: | |||||||||||||
Aerospace | $ | 1,362,822 | $ | 1,361,861 | |||||||||
Energy | 586,551 | 599,007 | |||||||||||
Total segment assets | 1,949,373 | 1,960,868 | |||||||||||
Unallocated corporate property, plant and equipment, net | 62,944 | 50,115 | |||||||||||
Other unallocated assets | 226,123 | 207,535 | |||||||||||
Consolidated total assets | $ | 2,238,440 | $ | 2,218,518 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted | ' | |||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net earnings | $ | 44,798 | $ | 42,446 | $ | 68,181 | $ | 69,814 | ||||||
Denominator: | ||||||||||||||
Basic shares outstanding | 66,633 | 68,737 | 67,182 | 68,597 | ||||||||||
Dilutive effect of stock options and restricted stock | 1,272 | 1,198 | 1,281 | 1,234 | ||||||||||
Diluted shares outstanding | 67,905 | 69,935 | 68,463 | 69,831 | ||||||||||
Income per common share: | ||||||||||||||
Basic earnings per share | $ | 0.67 | $ | 0.62 | $ | 1.01 | $ | 1.02 | ||||||
Diluted earnings per share | $ | 0.66 | $ | 0.61 | $ | 1.00 | $ | 1.00 | ||||||
Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share | ' | |||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Options | 720 | 722 | 244 | 70 | ||||||||||
Weighted-average option price | $ | 41.02 | $ | 34.05 | $ | 41.08 | $ | 37.48 | ||||||
Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding | ' | |||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Weighted-average treasury stock shares held for deferred compensation obligations | 225 | 266 | 228 | 270 | ||||||||||
Business_Acquisitions_Tables
Business Acquisitions (Tables) (Business Acquisition, Acquiree - Duarte Business [Member]) | 6 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Business Acquisition, Acquiree - Duarte Business [Member] | ' | |||||||||||
Schedule of the Purchase Price | ' | |||||||||||
Cash paid to Seller | $ | 198,900 | ||||||||||
Less cash acquired | -40 | |||||||||||
Total purchase price | $ | 198,860 | ||||||||||
Schedule of Purchase Price Allocation | ' | |||||||||||
Accounts receivable | $ | 14,245 | ||||||||||
Inventories | 30,149 | |||||||||||
Other current assets | 10,370 | |||||||||||
Property, plant, and equipment | 11,804 | |||||||||||
Goodwill | 98,310 | |||||||||||
Intangible assets | 89,700 | |||||||||||
Other noncurrent assets | 18,097 | |||||||||||
Total assets acquired | 272,675 | |||||||||||
Other current liabilities | 32,509 | |||||||||||
Other noncurrent liabilities | 41,306 | |||||||||||
Total liabilities assumed | 73,815 | |||||||||||
Net assets acquired | $ | 198,860 | ||||||||||
Schedule of Finite-Lived Intangible Assets Acquired | ' | |||||||||||
Estimated Amounts | Weighted-Average Useful Life | Amortization Method | ||||||||||
Customer relationships and contracts | $ | 77,000 | 20 | years | Straight-line | |||||||
Process technology | 5,000 | 25 | years | Straight-line | ||||||||
Backlog | 7,700 | 3 | years | Accelerated | ||||||||
Total | $ | 89,700 | ||||||||||
Schedule of Unaudited Pro Forma Results | ' | |||||||||||
Three-Months Ended March 31, 2014 | Three-Months Ended March 31, 2013 | |||||||||||
As reported | Pro forma | As reported | Pro forma | |||||||||
Net sales | $ | 482,467 | $ | 482,467 | $ | 485,513 | $ | 485,513 | ||||
Net earnings | 44,798 | 45,138 | 42,446 | 45,532 | ||||||||
Earnings per share: | ||||||||||||
Basic earnings per share | $ | 0.67 | $ | 0.68 | $ | 0.62 | $ | 0.66 | ||||
Diluted earnings per share | 0.66 | 0.66 | 0.61 | 0.65 | ||||||||
Six-Months Ended March 31, 2014 | Six-Months Ended March 31, 2013 | |||||||||||
As reported | Pro forma | As reported | Pro forma | |||||||||
Net sales | $ | 911,509 | $ | 911,509 | $ | 893,852 | $ | 924,252 | ||||
Net earnings | 68,181 | 68,770 | 69,814 | 73,970 | ||||||||
Earnings per share: | ||||||||||||
Basic earnings per share | $ | 1.01 | $ | 1.02 | $ | 1.02 | $ | 1.08 | ||||
Diluted earnings per share | 1.00 | 1.00 | 1.00 | 1.06 | ||||||||
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Financial Instruments and Fair Value Measurments | ' | ||||||||||||||||||||||||
Financial Assets that are Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||||||
At March 31, 2014 | At September 30, 2013 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Cash | $ | 36,512 | $ | - | $ | - | $ | 36,512 | $ | 35,839 | $ | - | $ | - | $ | 35,839 | |||||||||
Investments in money market funds | 10,078 | - | - | 10,078 | 2,950 | - | - | 2,950 | |||||||||||||||||
Investments in reverse repurchase agreements | 10,075 | - | - | 10,075 | 9,767 | - | - | 9,767 | |||||||||||||||||
Equity securities | 9,502 | - | - | 9,502 | 8,285 | - | - | 8,285 | |||||||||||||||||
Total financial assets | $ | 66,167 | $ | - | $ | - | $ | 66,167 | $ | 56,841 | $ | - | $ | - | $ | 56,841 | |||||||||
Estimated Fair Values of Financial Instruments | ' | ||||||||||||||||||||||||
At March 31, 2014 | At September 30, 2013 | ||||||||||||||||||||||||
Fair Value Hierarchy Level | Estimated Fair Value | Carrying Cost | Estimated Fair Value | Carrying Cost | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Notes receivable from municipalities | 2 | 15,782 | 14,978 | 6,718 | 8,114 | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Short-term borrowings | 2 | -21,000 | -21,000 | - | - | ||||||||||||||||||||
Long-term debt, including current portion | 2 | -621,175 | -584,000 | -588,297 | -550,000 | ||||||||||||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||
Impact of Derivative Instruments on Earnings | ' | ||||||||||||
Three-Months Ended March 31, | Six-Months Ended March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Amount of (Income) Expense Recognized in Earnings on Derivative | $ | 24 | $ | 43 | $ | 49 | $ | 86 | |||||
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | - | - | - | - | |||||||||
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | 24 | 43 | 49 | 86 | |||||||||
Supplemental_Statements_of_Cas1
Supplemental Statements of Cash Flows Information (Tables) | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Supplemental Statements of Cash Flows Information | ' | ||||||
Schedule of Cash Flow Supplemental Disclosures | ' | ||||||
Six-Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Interest paid, net of amounts capitalized | $ | 13,465 | $ | 12,945 | |||
Income taxes paid | 14,343 | 16,765 | |||||
Income tax refunds received | 1,330 | 2,905 | |||||
Non-cash activities: | |||||||
Purchases of property, plant and equipment on account | 8,899 | 2,868 | |||||
Common shares issued from treasury for benefit plans (Note 18) | 11,193 | 9,780 | |||||
Notes receivable from municipalities for economic development incentives | 6,596 | 2,064 | |||||
Cashless exercise of stock options | 715 | 2,645 | |||||
Settlement of receivable through cashless acquisition of treasury shares in | 871 | 3,447 | |||||
connection with the cashless exercise of stock options | |||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Accounts Receivable Disclosure | ' | ||||||
Schedule of Accounts Receivable | ' | ||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
Accounts receivable from: | |||||||
Customers | $ | 271,440 | $ | 308,111 | |||
Other (Chinese financial institutions) | 49,052 | 72,954 | |||||
$ | 320,492 | $ | 381,065 | ||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Inventories | ' | ||||||
Schedule of Inventories | ' | ||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
Raw materials | $ | 65,399 | $ | 67,599 | |||
Work in progress | 93,471 | 87,808 | |||||
Component parts (1) | 251,065 | 229,508 | |||||
Finished goods | 48,798 | 46,829 | |||||
$ | 458,733 | $ | 431,744 | ||||
Property_Plant_and_Equipment_N1
Property, Plant, and Equipment, Net (Tables) | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Property, Plant, and Equipment, Net | ' | ||||||||||||
Schedule of Property Plant and Equipment, Net | ' | ||||||||||||
March 31, | September 30, | ||||||||||||
2014 | 2013 | ||||||||||||
Land and land improvements | $ | 57,540 | $ | 57,562 | |||||||||
Buildings and improvements | 199,314 | 195,008 | |||||||||||
Leasehold improvements | 20,682 | 18,924 | |||||||||||
Machinery and production equipment | 320,319 | 305,692 | |||||||||||
Computer equipment and software | 101,726 | 97,538 | |||||||||||
Office furniture and equipment | 24,399 | 24,400 | |||||||||||
Other | 18,849 | 14,197 | |||||||||||
Construction in progress | 125,761 | 81,428 | |||||||||||
868,590 | 794,749 | ||||||||||||
Less accumulated depreciation | -467,540 | -444,701 | |||||||||||
Property, plant and equipment, net | $ | 401,050 | $ | 350,048 | |||||||||
Schedule of Depreciation Expense | ' | ||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Depreciation expense | $ | 11,062 | $ | 10,139 | $ | 21,694 | $ | 20,412 | |||||
Schedule of Capitalized Interest | ' | ||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Capitalized interest | $ | 1,314 | $ | 88 | $ | 2,289 | $ | 188 | |||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Goodwill Disclosure | ' | |||||||||
Schedule of Goodwill | ' | |||||||||
30-Sep-13 | Effects of Foreign Currency Translation | 31-Mar-14 | ||||||||
Aerospace | $ | 455,107 | $ | 225 | $ | 455,332 | ||||
Energy | 106,351 | 934 | 107,285 | |||||||
Consolidated | $ | 561,458 | $ | 1,159 | $ | 562,617 | ||||
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 6 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Intangible Assets, Net | ' | |||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | |||||||||||||||||
31-Mar-14 | 30-Sep-13 | |||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Amount | Gross Carrying Value | Accumulated Amortization | Net Carrying Amount | |||||||||||||
Customer relationships and contracts: | ||||||||||||||||||
Aerospace | $ | 282,270 | $ | -87,319 | $ | 194,951 | $ | 282,225 | $ | -77,288 | $ | 204,937 | ||||||
Energy | 42,111 | -31,260 | 10,851 | 42,008 | -29,711 | 12,297 | ||||||||||||
Total | $ | 324,381 | $ | -118,579 | $ | 205,802 | $ | 324,233 | $ | -106,999 | $ | 217,234 | ||||||
Intellectual property: | ||||||||||||||||||
Aerospace | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
Energy | 20,310 | -15,476 | 4,834 | 20,218 | -14,722 | 5,496 | ||||||||||||
Total | $ | 20,310 | $ | -15,476 | $ | 4,834 | $ | 20,218 | $ | -14,722 | $ | 5,496 | ||||||
Process technology: | ||||||||||||||||||
Aerospace | $ | 76,740 | $ | -29,039 | $ | 47,701 | $ | 76,718 | $ | -26,129 | $ | 50,589 | ||||||
Energy | 23,609 | -12,551 | 11,058 | 23,458 | -11,699 | 11,759 | ||||||||||||
Total | $ | 100,349 | $ | -41,590 | $ | 58,759 | $ | 100,176 | $ | -37,828 | $ | 62,348 | ||||||
Other intangibles: | ||||||||||||||||||
Aerospace | $ | 47,364 | $ | -45,680 | $ | 1,684 | $ | 47,351 | $ | -44,572 | $ | 2,779 | ||||||
Energy | 2,665 | -1,857 | 808 | 2,631 | -1,713 | 918 | ||||||||||||
Total | $ | 50,029 | $ | -47,537 | $ | 2,492 | $ | 49,982 | $ | -46,285 | $ | 3,697 | ||||||
Total intangibles: | ||||||||||||||||||
Aerospace | $ | 406,374 | $ | -162,038 | $ | 244,336 | $ | 406,294 | $ | -147,989 | $ | 258,305 | ||||||
Energy | 88,695 | -61,144 | 27,551 | 88,315 | -57,845 | 30,470 | ||||||||||||
Consolidated Total | $ | 495,069 | $ | -223,182 | $ | 271,887 | $ | 494,609 | $ | -205,834 | $ | 288,775 | ||||||
Schedule of Finite-Lived Intangible Assets Amortization Expense | ' | |||||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||||||
March 31, | March 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Amortization expense | $ | 8,657 | $ | 9,813 | $ | 17,141 | $ | 17,480 | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||||||
Year Ending September 30: | ||||||||||||||||||
2014 (remaining) | $ | 16,451 | ||||||||||||||||
2015 | 29,451 | |||||||||||||||||
2016 | 27,747 | |||||||||||||||||
2017 | 25,975 | |||||||||||||||||
2018 | 25,146 | |||||||||||||||||
Thereafter | 147,117 | |||||||||||||||||
$ | 271,887 | |||||||||||||||||
Credit_Facilities_Shortterm_Bo1
Credit Facilities, Short-term Borrowings and Long-term Debt (Tables) | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | ||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
Revolving credit facility - Floating rate (LIBOR plus 0.85% - 1.65%), due July 2018, unsecured | $ | 105,000 | $ | - | |||
Series B notes – 5.63%, due October 2013; unsecured | - | 100,000 | |||||
Series C notes – 5.92%, due October 2015; unsecured | 50,000 | 50,000 | |||||
Series D notes – 6.39%, due October 2018; unsecured | 100,000 | 100,000 | |||||
Series E notes – 7.81%, due April 2016; unsecured | 57,000 | 57,000 | |||||
Series F notes – 8.24%, due April 2019; unsecured | 43,000 | 43,000 | |||||
Series G notes – 3.42%, due November 2020; unsecured | 50,000 | - | |||||
Series H notes – 4.03%, due November 2023; unsecured | 25,000 | - | |||||
Series I notes – 4.18%, due November 2025; unsecured | 25,000 | - | |||||
Series J notes – Floating rate (LIBOR plus 1.25%), due November 2020; unsecured | 50,000 | - | |||||
Series K notes – 4.03%, due November 2023; unsecured | 50,000 | - | |||||
Series L notes – 4.18%, due November 2025; unsecured | 50,000 | - | |||||
Long-term borrowings under Line of Credit - Variable rate of 1.06% at September 30, 2013; unsecured | - | 200,000 | |||||
Total debt | 605,000 | 550,000 | |||||
Less: short-term borrowings and the current portion of long-term debt | -21,000 | -100,000 | |||||
Long-term debt, excluding current portion | $ | 584,000 | $ | 450,000 | |||
The Notes [Member] | ' | ||||||
Schedule of Future Principal Payments of Long-term Debt [Table Text Block] | ' | ||||||
Year Ending September 30: | |||||||
2014 (remaining) | $ | - | |||||
2015 | - | ||||||
2016 | 107,000 | ||||||
2017 | - | ||||||
2018 | - | ||||||
Thereafter | 393,000 | ||||||
$ | 500,000 | ||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 6 Months Ended | |||||
Mar. 31, 2014 | ||||||
Accrued Liabilities | ' | |||||
Accrued Liabilities | ' | |||||
March 31, | September 30, | |||||
2014 | 2013 | |||||
Salaries and other member benefits | $ | 36,912 | $ | 66,212 | ||
Warranties | 16,418 | 15,224 | ||||
Interest payable | 11,951 | 11,437 | ||||
Current portion of acquired performance obligations and unfavorable contracts (1) | 23,622 | 23,977 | ||||
Accrued retirement benefits | 2,243 | 2,276 | ||||
Deferred revenues | 5,930 | 6,304 | ||||
Taxes, other than income | 9,205 | 6,504 | ||||
Other | 21,732 | 29,807 | ||||
$ | 128,013 | $ | 161,741 | |||
Warranties | ' | |||||
Six-Months Ended March 31, | ||||||
2014 | 2013 | |||||
Warranties, beginning of period | $ | 15,224 | $ | 15,742 | ||
Expense | 5,333 | 4,785 | ||||
Increases due to acquisition of Duarte Business | - | 157 | ||||
Reductions for settling warranties | -4,317 | -6,068 | ||||
Foreign currency exchange rate changes | 178 | -48 | ||||
Warranties, end of period | $ | 16,418 | $ | 14,568 | ||
Other_Liabilities_Tables
Other Liabilities (Tables) | 6 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Other Liabilities | ' | ||||||
Schedule of Other Liabilities | ' | ||||||
March 31, | September 30, | ||||||
2014 | 2013 | ||||||
Net accrued retirement benefits, less amounts recognized within accrued liabilities | $ | 38,409 | $ | 39,956 | |||
Total unrecognized tax benefits, net of offsetting adjustments | 15,916 | 20,343 | |||||
Acquired performance obligations and unfavorable contracts (1) | 17,030 | 23,951 | |||||
Other | 29,949 | 21,260 | |||||
$ | 101,304 | $ | 105,510 | ||||
Other_Income_Expense_Net_Table
Other (Income) Expense, Net (Tables) | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Other (Income) Expense, Net | ' | ||||||||||||
Schedule of Other (Income) Expense, Net | ' | ||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Net (gain) loss on sale of assets | $ | 165 | $ | -229 | $ | 136 | $ | -230 | |||||
Rent income | -145 | -131 | -294 | -260 | |||||||||
Net gain on investments in deferred compensation program | -145 | -417 | -573 | -526 | |||||||||
Other | -65 | -113 | -66 | -136 | |||||||||
$ | -190 | $ | -890 | $ | -797 | $ | -1,152 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Income Taxes | ' | ||||||||||||
Tax Expense and Effective Tax Rate | ' | ||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Earnings before income taxes | $ | 56,756 | $ | 50,336 | $ | 89,700 | $ | 88,873 | |||||
Income tax expense | 11,958 | 7,890 | 21,519 | 19,059 | |||||||||
Effective tax rate | 21.1% | 15.7% | 24.0% | 21.4% | |||||||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 6 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Schedule of Estimated Remaining Cash Contributions | ' | ||||||||||||||||||
Retirement pension benefits: | |||||||||||||||||||
United States | $ | 200 | |||||||||||||||||
United Kingdom | 927 | ||||||||||||||||||
Japan | - | ||||||||||||||||||
Switzerland | 66 | ||||||||||||||||||
Other postretirement benefits | 2,586 | ||||||||||||||||||
Pension Plans, Defined Benefit [Member] | ' | ||||||||||||||||||
Schedule of Net Periodic Benefit Costs | ' | ||||||||||||||||||
Three-Months Ended March 31, | |||||||||||||||||||
United States | Other Countries | Total | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 872 | $ | 1,107 | $ | 262 | $ | 262 | $ | 1,134 | $ | 1,369 | |||||||
Interest cost | 1,603 | 1,392 | 605 | 525 | 2,208 | 1,917 | |||||||||||||
Expected return on plan assets | -2,433 | -2,045 | -770 | -648 | -3,203 | -2,693 | |||||||||||||
Amortization of: | |||||||||||||||||||
Net actuarial (gain) loss | 82 | 343 | 163 | 115 | 245 | 458 | |||||||||||||
Prior service cost (benefit) | 18 | 18 | -1 | -2 | 17 | 16 | |||||||||||||
Net periodic retirement pension (benefit) cost | $ | 142 | $ | 815 | $ | 259 | $ | 252 | $ | 401 | $ | 1,067 | |||||||
Contributions paid | $ | 200 | $ | 1,500 | $ | 596 | $ | 443 | $ | 796 | $ | 1,943 | |||||||
Six-Months Ended March 31, | |||||||||||||||||||
United States | Other Countries | Total | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 1,744 | $ | 2,214 | $ | 521 | $ | 543 | $ | 2,265 | $ | 2,757 | |||||||
Interest cost | 3,213 | 2,784 | 1,200 | 1,073 | 4,413 | 3,857 | |||||||||||||
Expected return on plan assets | -4,867 | -4,090 | -1,527 | -1,327 | -6,394 | -5,417 | |||||||||||||
Amortization of: | |||||||||||||||||||
Net actuarial (gain) loss | 165 | 687 | 324 | 239 | 489 | 926 | |||||||||||||
Prior service cost (benefit) | 37 | 37 | -2 | -4 | 35 | 33 | |||||||||||||
Net periodic retirement pension (benefit) cost | $ | 292 | $ | 1,632 | $ | 516 | $ | 524 | $ | 808 | $ | 2,156 | |||||||
Contributions paid | $ | 300 | $ | 3,000 | $ | 2,167 | $ | 2,257 | $ | 2,467 | $ | 5,257 | |||||||
Multiemployer Plan [Member] | ' | ||||||||||||||||||
Schedule of Costs of Retirement Plans | ' | ||||||||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Company contributions | $ | 185 | $ | 201 | $ | 375 | $ | 411 | |||||||||||
Defined Contribution Plan [Member] | ' | ||||||||||||||||||
Schedule of Costs of Retirement Plans | ' | ||||||||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Company costs | $ | 5,393 | $ | 4,449 | $ | 10,682 | $ | 9,373 | |||||||||||
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ||||||||||||||||||
Schedule of Net Periodic Benefit Costs | ' | ||||||||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Service cost | $ | 12 | $ | 18 | $ | 24 | $ | 36 | |||||||||||
Interest cost | 358 | 311 | 716 | 622 | |||||||||||||||
Amortization of: | |||||||||||||||||||
Net actuarial (gain) loss | -50 | -17 | -100 | -34 | |||||||||||||||
Prior service cost (benefit) | -39 | -39 | -79 | -79 | |||||||||||||||
Net periodic other postretirement (benefit) cost | $ | 281 | $ | 273 | $ | 561 | $ | 545 | |||||||||||
Contributions paid | $ | 862 | $ | 587 | $ | 1,368 | $ | 1,343 | |||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards | ' | |||||||||||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Expected term (years) | n/a | 5.8 | 5.8 | - | 8.6 | 5.8 | - | 8.6 | ||||||||||||||||
Estimated volatility | n/a | 54.90% | 38.50% | 48.7% | - | 54.90% | ||||||||||||||||||
Estimated dividend yield | n/a | 0.80% | 0.80% | 0.8% | - | 1.00% | ||||||||||||||||||
Risk-free interest rate | n/a | 1.00% | 1.7% | - | 2.50% | 0.8% | - | 1.30% | ||||||||||||||||
Activity for Stock Option Awards | ' | |||||||||||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||||||||||||
31-Mar-14 | 31-Mar-14 | |||||||||||||||||||||||
Number of options | Weighted-Average Exercise Price per Share | Number of options | Weighted-Average Exercise Price per Share | |||||||||||||||||||||
Options, beginning balance | 4,947 | $ | 27.23 | 4,423 | $ | 25.06 | ||||||||||||||||||
Options granted | - | n/a | 694 | 40.99 | ||||||||||||||||||||
Options exercised | -197 | 13.93 | -354 | 19.39 | ||||||||||||||||||||
Options forfeited | -28 | 34.30 | -41 | 34.75 | ||||||||||||||||||||
Options, ending balance | 4,722 | 27.74 | 4,722 | 27.74 | ||||||||||||||||||||
Stock Options Vested, Or Expected to Vest and Are Exercisable | ' | |||||||||||||||||||||||
Number | Weighted- Average Exercise Price | Weighted- Average Remaining Life in Years | Aggregate Intrinsic Value | |||||||||||||||||||||
Options outstanding | 4,722 | $ | 27.74 | 5.9 | $ | 65,132 | ||||||||||||||||||
Options vested and exercisable | 3,014 | 23.75 | 4.5 | 53,614 | ||||||||||||||||||||
Options vested and expected to vest | 4,596 | 27.51 | 5.9 | 64,465 | ||||||||||||||||||||
Changes in Restricted Stock Awards | ' | |||||||||||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||||||||||||
31-Mar-14 | 31-Mar-14 | |||||||||||||||||||||||
Number | Fair Value per Share | Number | Fair Value per Share | |||||||||||||||||||||
Beginning balance | 24 | $ | 39.43 | - | $ | n/a | ||||||||||||||||||
Shares granted | - | n/a | 24 | 39.43 | ||||||||||||||||||||
Shares vested | - | n/a | - | n/a | ||||||||||||||||||||
Shares forfeited | - | n/a | - | n/a | ||||||||||||||||||||
Ending balance | 24 | 39.43 | 24 | 39.43 | ||||||||||||||||||||
Stock Options [Member] | ' | |||||||||||||||||||||||
Changes in Nonvested Stock Options | ' | |||||||||||||||||||||||
Three-Months Ended | Six-Months Ended | |||||||||||||||||||||||
31-Mar-14 | 31-Mar-14 | |||||||||||||||||||||||
Number of options | Weighted-Average Exercise Price per Share | Number of options | Weighted-Average Exercise Price per Share | |||||||||||||||||||||
Options, beginning balance | 1,771 | $ | 34.75 | 1,737 | $ | 29.97 | ||||||||||||||||||
Options granted | - | n/a | 694 | 40.99 | ||||||||||||||||||||
Options vested | -36 | 32.66 | -683 | 28.82 | ||||||||||||||||||||
Options forfeited | -28 | 34.30 | -41 | 34.75 | ||||||||||||||||||||
Options, ending balance | 1,707 | 34.80 | 1,707 | 34.80 | ||||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segment Information | ' | ||||||||||||
Consolidated Net Sales and Earnings by Segment | ' | ||||||||||||
Three-Months Ended | Six-Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Segment external net sales: | |||||||||||||
Aerospace | $ | 261,021 | $ | 270,493 | $ | 490,893 | $ | 481,882 | |||||
Energy | 221,446 | 215,020 | 420,616 | 411,970 | |||||||||
Total consolidated net sales | $ | 482,467 | $ | 485,513 | $ | 911,509 | $ | 893,852 | |||||
Segment earnings: | |||||||||||||
Aerospace | $ | 40,289 | $ | 41,223 | $ | 62,838 | $ | 72,791 | |||||
Energy | 31,888 | 24,235 | 58,959 | 48,143 | |||||||||
Total segment earnings | 72,177 | 65,458 | 121,797 | 120,934 | |||||||||
Nonsegment expenses | -9,293 | -8,174 | -19,966 | -18,725 | |||||||||
Interest expense, net | -6,128 | -6,948 | -12,131 | -13,336 | |||||||||
Consolidated earnings before income taxes | $ | 56,756 | $ | 50,336 | $ | 89,700 | $ | 88,873 | |||||
Consolidated Total Assets by Segment | ' | ||||||||||||
31-Mar-14 | 30-Sep-13 | ||||||||||||
Segment assets: | |||||||||||||
Aerospace | $ | 1,362,822 | $ | 1,361,861 | |||||||||
Energy | 586,551 | 599,007 | |||||||||||
Total segment assets | 1,949,373 | 1,960,868 | |||||||||||
Unallocated corporate property, plant and equipment, net | 62,944 | 50,115 | |||||||||||
Other unallocated assets | 226,123 | 207,535 | |||||||||||
Consolidated total assets | $ | 2,238,440 | $ | 2,218,518 | |||||||||
Basis_of_Presentation_Narrativ
Basis of Presentation (Narrative) (Details) (Business Acquisition, Acquiree - Duarte Business [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Business Acquisition, Acquiree - Duarte Business [Member] | ' |
Retrospective adjustments primarily related to long-term performance obligations and other accrued liabilities | $12,800 |
Earnings_Per_Share_Reconciliat
Earnings Per Share (Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share | ' | ' | ' | ' |
Net earnings | $44,798 | $42,446 | $68,181 | $69,814 |
Basic shares outstanding | 66,633 | 68,737 | 67,182 | 68,597 |
Dilutive effect of stock options and restricted stock | 1,272 | 1,198 | 1,281 | 1,234 |
Diluted shares outstanding | 67,905 | 69,935 | 68,463 | 69,831 |
Basic earnings per share | $0.67 | $0.62 | $1.01 | $1.02 |
Diluted earnings per share | $0.66 | $0.61 | $1 | $1 |
Earnings_Per_Share_Antidilutiv
Earnings Per Share (Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share | ' | ' | ' | ' |
Options | 720 | 722 | 244 | 70 |
Weighted-average option price | $41.02 | $34.05 | $41.08 | $37.48 |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding) (Details) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share | ' | ' | ' | ' |
Weighted-average treasury stock shares held for deferred compensation obligations | 225 | 266 | 228 | 270 |
Business_Acquisitions_Narrativ
Business Acquisitions (Narrative) (Details) (Business Acquisition, Acquiree - Duarte Business [Member], USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 28, 2012 |
Business Acquisition, Acquiree - Duarte Business [Member] | ' | ' | ' | ' | ' | ' |
Purchase agreement contract price | ' | ' | $200,000 | ' | ' | ' |
Cash paid at closing | ' | ' | 198,900 | ' | ' | ' |
Retrospective adjustments primarily related to long-term performance obligations and other accrued liabilities | ' | 12,800 | ' | ' | ' | ' |
Current portion of contractual commitment acquired that is expected to result in future losses | ' | ' | ' | ' | ' | 4,758 |
Long-term portion of contractual commitment acquired that is expected to result in future losses | ' | ' | ' | ' | ' | 17,939 |
Long-term portion of performance obligation acquired | ' | ' | ' | ' | ' | 23,215 |
Current portion of performance obligation acquired | ' | ' | ' | ' | ' | 12,985 |
Long-term receivable from Seller for services to be provided to the Seller | ' | ' | ' | ' | ' | 18,097 |
Current receivable from Seller for services to be provided to the Seller | ' | ' | ' | ' | ' | 8,103 |
Transaction costs | ' | ' | ' | 0 | 1,707 | ' |
Net Sales | $37,701 | ' | ' | $69,133 | $35,090 | ' |
Business_Acquisitions_Schedule
Business Acquisitions (Schedule of Purchase Price) (Details) (USD $) | 6 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 |
Business Acquisition, Acquiree - Duarte Business [Member] | |||
Cash paid to seller | ' | ' | $198,900 |
Less cash acquired | ' | ' | -40 |
Total purchase price | $0 | $198,860 | $198,860 |
Business_Acquisitions_Schedule1
Business Acquisitions (Schedule of Estimated Purchase Price Allocation) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | Business Acquisition, Acquiree - Duarte Business [Member] | ||
Accounts receivable | ' | ' | $14,245 |
Inventories | ' | ' | 30,149 |
Other current assets | ' | ' | 10,370 |
Property, plant, and equipment | ' | ' | 11,804 |
Goodwill | 562,617 | 561,458 | 98,310 |
Intangible assets | ' | ' | 89,700 |
Other noncurrent assets | ' | ' | 18,097 |
Total assets acquired | ' | ' | 272,675 |
Other current liabilities | ' | ' | 32,509 |
Other noncurrent liabilities | ' | ' | 41,306 |
Total liabilities assumed | ' | ' | 73,815 |
Net assets acquired | ' | ' | $198,860 |
Business_Acquisitions_Schedule2
Business Acquisitions (Schedule of Finite-Lived Intangible Assets Acquired) (Details) (Business Acquisition, Acquiree - Duarte Business [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 28, 2012 |
Intangible assets | ' | $89,700 |
Process Technology [Member] | ' | ' |
Intangible assets | ' | 5,000 |
Weighted Average Useful Life | '25 years | ' |
Customer Relationships [Member] | ' | ' |
Intangible assets | ' | 77,000 |
Weighted Average Useful Life | '20 years | ' |
Backlog [Member] | ' | ' |
Intangible assets | ' | $7,700 |
Weighted Average Useful Life | '3 years | ' |
Business_Acquisitions_Schedule3
Business Acquisitions (Schedule of Unaudited Pro Forma Results) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Business Combinations | ' | ' | ' | ' |
Net sales | $482,467 | $485,513 | $911,509 | $893,852 |
Net earnings | 44,798 | 42,446 | 68,181 | 69,814 |
Basic earnings per share | $0.67 | $0.62 | $1.01 | $1.02 |
Diluted earnings per share | $0.66 | $0.61 | $1 | $1 |
Pro forma | ' | ' | ' | ' |
Net sales | 482,467 | 485,513 | 911,509 | 924,252 |
Net earnings | $45,138 | $45,532 | $68,770 | $73,970 |
Basic earnings per share | $0.68 | $0.66 | $1.02 | $1.08 |
Diluted earnings per share | $0.66 | $0.65 | $1 | $1.06 |
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value Measurements (Narrative) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Sep. 30, 2013 | |
Financial liability on recurring basis | 0 | 0 |
Long Term Note Receivable From Municipality Within The State Of Illinois [Member] | ' | ' |
Note receivable from municipality, interest rate used to estimate fair value | 3.50% | 4.30% |
Long Term Note Receivable From Municipality Within The State Of Colorado [Member] | ' | ' |
Note receivable from municipality, interest rate used to estimate fair value | 3.50% | 4.30% |
Borrowings [Member] | ' | ' |
Interest rate used to estimate fair value | 2.60% | 2.00% |
Financial_Instruments_and_Fair3
Financial Instruments and Fair Value Measurements (Financial Assets that are Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Equity securities | $9,502 | $8,285 |
Total financial assets | 66,167 | 56,841 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Equity securities | 9,502 | 8,285 |
Total financial assets | 66,167 | 56,841 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Equity securities | 0 | 0 |
Total financial assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Equity securities | 0 | 0 |
Total financial assets | 0 | 0 |
Cash [Member] | ' | ' |
Cash and cash equivalents | 36,512 | 35,839 |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Cash and cash equivalents | 36,512 | 35,839 |
Cash [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investments in Money Market Funds [Member] | ' | ' |
Cash and cash equivalents | 10,078 | 2,950 |
Investments in Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Cash and cash equivalents | 10,078 | 2,950 |
Investments in Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investments in Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investments in Reverse Repurchase Agreements [Member] | ' | ' |
Cash and cash equivalents | 10,075 | 9,767 |
Investments in Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Cash and cash equivalents | 10,075 | 9,767 |
Investments in Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investments in Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Cash and cash equivalents | $0 | $0 |
Financial_Instruments_and_Fair4
Financial Instruments and Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents, Carrying Cost | $56,665 | $48,556 | $54,658 | $61,829 |
Note receivable from municipality, Carrying Cost | 14,978 | 8,114 | ' | ' |
Short-term borrowings, Carrying Cost | -21,000 | 0 | ' | ' |
Long-term debt, including current portion, Carrying Cost | -584,000 | -550,000 | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Note receivable from municipality, Estimated Fair Value | 15,782 | 6,718 | ' | ' |
Short-term borrowings, Estimated Fair Value | -21,000 | 0 | ' | ' |
Long-term debt, including current portion, Estimated Fair Value | ($621,175) | ($588,297) | ' | ' |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Narrative) (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Sep. 30, 2013 |
Interest Expense [Member] | Interest Expense [Member] | Interest Expense [Member] | Interest Expense [Member] | Total Accumulated Other Comprehensive (Loss) Earnings [Member] | Total Accumulated Other Comprehensive (Loss) Earnings [Member] | ||
Derivatives in Cash Flow Hedging Relationships [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ||||
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | ' | $0 | $0 | $0 | $0 | ' | ' |
Unrecognized gains (loss) | ' | ' | ' | ' | ' | 120 | 71 |
Net unrecognized losses on terminated derivative instruments expected to be reclassified to earnings | $99 | ' | ' | ' | ' | ' | ' |
Term of gain or loss recognition in interest expense on terminated derivatives recorded in OCI | '12 months | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Impact of Derivative Instruments on Earnings) (Details) (Interest Expense [Member], Derivatives in Cash Flow Hedging Relationships [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Expense [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' |
Amount of (Income) Expense Recognized in Earnings on Derivative | $24 | $43 | $49 | $86 |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | 0 | 0 | 0 | 0 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $24 | $43 | $49 | $86 |
Supplemental_Statements_of_Cas2
Supplemental Statements of Cash Flows Information (Schedule of Cash Flow Supplemental Disclosures) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Supplemental Statements of Cash Flows Information | ' | ' |
Interest paid, net of amounts capitalized | $13,465 | $12,945 |
Income taxes paid | 14,343 | 16,765 |
Income tax refunds received | 1,330 | 2,905 |
Purchases of property, plant and equipment on account | 8,899 | 2,868 |
Common shares issued from treasury stock for benefit plans (Note 18) | 11,193 | 9,780 |
Notes receivable from municipalities for economic development incentives | 6,596 | 2,064 |
Cashless exercise of stock options | 715 | 2,645 |
Settlement of receivable through purchase of treasury shares in connection with the cashless exercise of stock options | $871 | $3,447 |
Accounts_Receivable_Schedule_o
Accounts Receivable (Schedule of Accounts Receivable) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable | $320,492 | $381,065 |
Trade Accounts Receivable [Member] | ' | ' |
Accounts receivable | 271,440 | 308,111 |
Accounts Receivable from Chinese Financial Institution [Member] | ' | ' |
Accounts receivable | $49,052 | $72,954 |
Inventories_Schedule_of_Invent
Inventories (Schedule of Inventories) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Raw Materials | $65,399 | $67,599 |
Work in progress | 93,471 | 87,808 |
Component Parts | 251,065 | 229,508 |
Finished Goods | 48,798 | 46,829 |
Inventory, net | $458,733 | $431,744 |
Property_Plant_and_Equipment_N2
Property, Plant, and Equipment, Net (Narrative) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Construction in progress | $125,761 | $81,428 |
Second Campus Rockford Illinois [Member] | ' | ' |
Construction in progress | 36,201 | 15,691 |
Capitalized interest | 1,262 | 444 |
New Campus Fort Collins Colorado [Member] | ' | ' |
Construction in progress | 18,141 | 10,514 |
Capitalized interest | 864 | 394 |
Building Site Niles Illinois [Member] | ' | ' |
Construction in progress | 18,887 | 12,067 |
Capitalized interest | $365 | $0 |
Property_Plant_and_Equipment_N3
Property, Plant, and Equipment, Net (Property, Plant, and Equipment - Net) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 |
Property, Plant, and Equipment, Net | ' | ' | ' | ' | ' |
Land and Land Improvements | $57,540 | ' | $57,540 | ' | $57,562 |
Buildings and improvements | 199,314 | ' | 199,314 | ' | 195,008 |
Leasehold improvements | 20,682 | ' | 20,682 | ' | 18,924 |
Machinery and production equipment | 320,319 | ' | 320,319 | ' | 305,692 |
Computer equipment and software | 101,726 | ' | 101,726 | ' | 97,538 |
Office furniture and equipment | 24,399 | ' | 24,399 | ' | 24,400 |
Other | 18,849 | ' | 18,849 | ' | 14,197 |
Construction in progress | 125,761 | ' | 125,761 | ' | 81,428 |
Property, Plant and Equipment, Gross, Total | 868,590 | ' | 868,590 | ' | 794,749 |
Less accumulated depreciation | -467,540 | ' | -467,540 | ' | -444,701 |
Property, Plant and Equipment, Net, Total | 401,050 | ' | 401,050 | ' | 350,048 |
Depreciation expense | 11,062 | 10,139 | 21,694 | 20,412 | ' |
Capitalized interest | $1,314 | $88 | $2,289 | $188 | ' |
Goodwill_Narrative_Details
Goodwill (Narrative) (Details) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Impairment | $0 |
Minimum [Member] | ' |
Weighted average cost of capital assumption | 8.85% |
Assumed annual compound growth rate after five or ten years | 4.25% |
Maximum [Member] | ' |
Weighted average cost of capital assumption | 10.32% |
Assumed annual compound growth rate after five or ten years | 4.50% |
Goodwill_Goodwill_Details
Goodwill (Goodwill) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Goodwill, Beginning Balance | $561,458 |
Effects of Currency Translation | 1,159 |
Goodwill, Ending Balance | 562,617 |
Aerospace [Member] | ' |
Goodwill, Beginning Balance | 455,107 |
Effects of Currency Translation | 225 |
Goodwill, Ending Balance | 455,332 |
Energy [Member] | ' |
Goodwill, Beginning Balance | 106,351 |
Effects of Currency Translation | 934 |
Goodwill, Ending Balance | $107,285 |
Intangible_Assets_Net_Schedule
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets by Major Class) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 |
Gross Carrying Value | $495,069 | ' | $495,069 | ' | $494,609 |
Accumulated Amortization | -223,182 | ' | -223,182 | ' | -205,834 |
Net Carrying Amount | 271,887 | ' | 271,887 | ' | 288,775 |
Amortization expense | 8,657 | 9,813 | 17,141 | 17,480 | ' |
Process Technology [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 100,349 | ' | 100,349 | ' | 100,176 |
Accumulated Amortization | -41,590 | ' | -41,590 | ' | -37,828 |
Net Carrying Amount | 58,759 | ' | 58,759 | ' | 62,348 |
Customer Relationships [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 324,381 | ' | 324,381 | ' | 324,233 |
Accumulated Amortization | -118,579 | ' | -118,579 | ' | -106,999 |
Net Carrying Amount | 205,802 | ' | 205,802 | ' | 217,234 |
Intellectual Property [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 20,310 | ' | 20,310 | ' | 20,218 |
Accumulated Amortization | -15,476 | ' | -15,476 | ' | -14,722 |
Net Carrying Amount | 4,834 | ' | 4,834 | ' | 5,496 |
Other Intangibles [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 50,029 | ' | 50,029 | ' | 49,982 |
Accumulated Amortization | -47,537 | ' | -47,537 | ' | -46,285 |
Net Carrying Amount | 2,492 | ' | 2,492 | ' | 3,697 |
Aerospace [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 406,374 | ' | 406,374 | ' | 406,294 |
Accumulated Amortization | -162,038 | ' | -162,038 | ' | -147,989 |
Net Carrying Amount | 244,336 | ' | 244,336 | ' | 258,305 |
Aerospace [Member] | Process Technology [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 76,740 | ' | 76,740 | ' | 76,718 |
Accumulated Amortization | -29,039 | ' | -29,039 | ' | -26,129 |
Net Carrying Amount | 47,701 | ' | 47,701 | ' | 50,589 |
Aerospace [Member] | Customer Relationships [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 282,270 | ' | 282,270 | ' | 282,225 |
Accumulated Amortization | -87,319 | ' | -87,319 | ' | -77,288 |
Net Carrying Amount | 194,951 | ' | 194,951 | ' | 204,937 |
Aerospace [Member] | Intellectual Property [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 0 | ' | 0 | ' | 0 |
Accumulated Amortization | 0 | ' | 0 | ' | 0 |
Net Carrying Amount | 0 | ' | 0 | ' | 0 |
Aerospace [Member] | Other Intangibles [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 47,364 | ' | 47,364 | ' | 47,351 |
Accumulated Amortization | -45,680 | ' | -45,680 | ' | -44,572 |
Net Carrying Amount | 1,684 | ' | 1,684 | ' | 2,779 |
Energy [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 88,695 | ' | 88,695 | ' | 88,315 |
Accumulated Amortization | -61,144 | ' | -61,144 | ' | -57,845 |
Net Carrying Amount | 27,551 | ' | 27,551 | ' | 30,470 |
Energy [Member] | Process Technology [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 23,609 | ' | 23,609 | ' | 23,458 |
Accumulated Amortization | -12,551 | ' | -12,551 | ' | -11,699 |
Net Carrying Amount | 11,058 | ' | 11,058 | ' | 11,759 |
Energy [Member] | Customer Relationships [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 42,111 | ' | 42,111 | ' | 42,008 |
Accumulated Amortization | -31,260 | ' | -31,260 | ' | -29,711 |
Net Carrying Amount | 10,851 | ' | 10,851 | ' | 12,297 |
Energy [Member] | Intellectual Property [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 20,310 | ' | 20,310 | ' | 20,218 |
Accumulated Amortization | -15,476 | ' | -15,476 | ' | -14,722 |
Net Carrying Amount | 4,834 | ' | 4,834 | ' | 5,496 |
Energy [Member] | Other Intangibles [Member] | ' | ' | ' | ' | ' |
Gross Carrying Value | 2,665 | ' | 2,665 | ' | 2,631 |
Accumulated Amortization | -1,857 | ' | -1,857 | ' | -1,713 |
Net Carrying Amount | $808 | ' | $808 | ' | $918 |
Intangible_Assets_Net_Schedule1
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets, Net | ' | ' |
2014 (remaining) | $16,451 | ' |
2015 | 29,451 | ' |
2016 | 27,747 | ' |
2017 | 25,975 | ' |
2018 | 25,146 | ' |
Thereafter | 147,117 | ' |
Finite-Lived Intangible Assets, Net, Total | $271,887 | $288,775 |
Credit_Facilities_Shortterm_Bo2
Credit Facilities, Short-term Borrowings (Narrative) (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Foreign Lines of Credit And Overdraft Facilities [Member] | Domestic Line Of Credit [Member] | Domestic Line Of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Agreement [Member] | Chinese Credit Facility [Member] | Chinese Credit Facility, RMB Denominated Loan [Member] | The Notes [Member] | Revolving Credit Agreement [Member] | ||||||
Minimum [Member] | Maximum [Member] | ||||||||||||||||
Maximum borrowing capacity | ' | ' | ' | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' | $22,700 | ' | ' | ' | $600,000 |
Option to increase maximum borrowings to this amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 |
Line of Credit Facility, Expiration Date | ' | ' | ' | ' | ' | 20-Dec-13 | ' | ' | ' | ' | ' | 1-Jul-18 | ' | ' | ' | ' | ' |
Line of Credit Facility, Initiation Date | ' | ' | ' | ' | ' | 21-Dec-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Rate Basis | ' | ' | ' | ' | ' | ' | 'prime rate or an adjusted LIBOR | ' | ' | '0.85% | '1.65% | 'LIBOR | ' | 'interest at the prevailing interest rate offered by the People's Bank of China on the date of borrowing, plus a margin equal to 25% of that prevailing rate | 'interest at the lender's cost of borrowing rate at the date of borrowing, plus 3% | ' | ' |
Credit facility effective interest rate on outstanding borrowing | ' | ' | ' | ' | ' | ' | ' | 1.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cross default provisions related to the Companybs other outstanding debt arrangements in excess of this amount, the occurrence of which would permit the lenders to accelerate the amounts due thereunder | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' |
Debt Covenant, Minimum Consolidated Net Worth Calculation, Base Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | 800,000 | ' |
Debt Covenant, Minimum Consolidated Net Worth Calculation, Percentage of Net Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | 50.00% | ' |
Debt Covenant, Minimum Consolidated Net Worth Calculation, Percentage of Net Proceeds of Issuance of Capital Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Debt Covenant, Leverage Ratio, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3.5 to 1.0 | ' | ' | ' | '3.5 to 1.0 | ' |
Debt Covenant, Leverage Ratio During Material Acquisition Period, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4.0 to 1.0 | ' | ' | ' | '4.0 to 1.0 | ' |
Debt Covenant, Leverage Ratio Next Two Succeeding Fiscal Quarters Following Material Acquisition, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3.75 to 1.0 | ' | ' | ' | ' | ' |
Repayment of long-term debt | 300,000 | 41,875 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | ' | ' | ' | ' | 0 | ' | ' | 105,000 | 0 | ' | ' | ' | 0 | ' | ' | ' | ' |
Short-term borrowings | 21,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 21,000 | ' | ' | ' | ' | ' |
Long-term debt, excluding current portion | 584,000 | ' | 450,000 | ' | ' | ' | ' | 84,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 56,665 | 54,658 | 48,556 | 61,829 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $56,665 | $54,658 | $48,556 | $61,829 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Longterm_Debt_Narrative_Detail
Long-term Debt (Narrative) (Details) (USD $) | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
The Notes [Member] | Non Floating Rate Notes [Member] | 2008 Note Purchase Agreement [Member] | 2009 Note Purchase Agreement [Member] | 2013 Note Purchase Agreement [Member] | Floating Rate Notes [Member] | Series J Notes [Member] | First Closing Notes [Member] | Second Closing Notes [Member] | Foreign Lines of Credit And Overdraft Facilities [Member] | Domestic Line Of Credit [Member] | Domestic Line Of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Chinese Credit Facility [Member] | Chinese Credit Facility, RMB Denominated Loan [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | ||||
Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||
Issuance Date | ' | ' | ' | ' | 1-Oct-08 | 1-Apr-09 | 1-Oct-13 | ' | ' | 1-Oct-13 | 15-Nov-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face Amount | ' | ' | ' | ' | ' | ' | $250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Rate Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'prime rate or an adjusted LIBOR | ' | ' | '0.85% | '1.65% | ' | 'interest at the prevailing interest rate offered by the People's Bank of China on the date of borrowing, plus a margin equal to 25% of that prevailing rate | 'interest at the lender's cost of borrowing rate at the date of borrowing, plus 3% | 'LIBOR | ' |
Effective Interest Rate on Note | ' | ' | ' | ' | ' | ' | ' | ' | 1.49% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Covenant, Leverage Ratio, Maximum | ' | ' | '3.5 to 1.0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3.5 to 1.0 | ' |
Debt Covenant, Minimum Consolidated Net Worth Calculation, Base Value | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' |
Debt Covenant, Minimum Consolidated Net Worth Calculation, Percentage of Net Income | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Debt Covenant, Minimum Consolidated Net Worth Calculation, Percentage of Net Proceeds of Issuance of Capital Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Debt Covenant, Calculations, Period Of Time | ' | ' | 'rolling four quarter basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cross default provisions related to the Companybs other outstanding debt arrangements in excess of this amount, the occurrence of which would permit the lenders to accelerate the amounts due thereunder | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Covenant, Leverage Ratio During Material Acquisition Period, Maximum | ' | ' | '4.0 to 1.0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4.0 to 1.0 | ' |
Debt Covenant, Maximum Percentage of Priority Debt To Consolidated Net Worth | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment, Maximum Percentage of Principal | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment, Partial Payment Minimum | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment, Make-Whole Amount Computation, Discount Rate Basis Points | ' | ' | ' | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Prepayment Make Whole Amount Computation | ' | ' | ' | 'discounting the remaining scheduled payments of interest and principal of the Notes being prepaid at a discount rate equal to the sum of 50 basis points and the yield to maturity of U.S. Treasury securities having a maturity equal to the remaining average life of the Notes being prepaid. | ' | ' | ' | 'computed as a percentage of the principal amount of such floating rate Notes equal to (a) 2%, on or prior to November 15, 2014, (b) 1%, after November 15, 2014 and on or prior to November 15, 2015, and (c) 0% after November 15, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt financing costs | 1,297 | 0 | ' | ' | ' | ' | 1,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Initiation Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21-Dec-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Expiration Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20-Dec-13 | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jul-18 | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | 22,700 | ' | ' | ' | 600,000 |
Outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | $105,000 | $0 | ' | ' | $0 | ' | ' | ' | ' |
Credit facility effective interest rate on outstanding borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.20% | ' | ' | ' | ' | ' | ' | ' | ' |
Longterm_Debt_Schedule_of_Long
Long-term Debt (Schedule of Long-term Debt) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Sep. 30, 2013 |
Total debt | $605,000 | $550,000 |
Current portion of long-term debt | 0 | -100,000 |
Short-term Debt | 21,000 | 0 |
Long-term debt, excluding current portion | 584,000 | 450,000 |
Domestic Line Of Credit [Member] | ' | ' |
Interest rate | ' | 1.06% |
Maturity date | 20-Dec-13 | ' |
Series B Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 0 | 100,000 |
Interest rate | 5.63% | 5.63% |
Maturity date | 1-Oct-13 | 1-Oct-13 |
Series C Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 50,000 | 50,000 |
Interest rate | 5.92% | 5.92% |
Maturity date | 1-Oct-15 | 1-Oct-15 |
Series D Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 100,000 | 100,000 |
Interest rate | 6.39% | 6.39% |
Maturity date | 1-Oct-18 | 1-Oct-18 |
Series E Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 57,000 | 57,000 |
Interest rate | 7.81% | 7.81% |
Maturity date | 3-Apr-16 | 3-Apr-16 |
Series F Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 43,000 | 43,000 |
Interest rate | 8.24% | 8.24% |
Maturity date | 3-Apr-19 | 3-Apr-19 |
Series J Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 50,000 | 0 |
Debt Instrument, Description of Variable Rate Basis | 'LIBOR | ' |
Basis Spread On Variable Rate | 1.25% | ' |
Maturity date | 15-Nov-20 | ' |
Series G Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 50,000 | 0 |
Interest rate | 3.42% | ' |
Maturity date | 15-Nov-20 | ' |
Series H Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 25,000 | 0 |
Interest rate | 4.03% | ' |
Maturity date | 15-Nov-23 | ' |
Series I Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 25,000 | 0 |
Interest rate | 4.18% | ' |
Maturity date | 15-Nov-25 | ' |
Series K Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 50,000 | 0 |
Interest rate | 4.03% | ' |
Maturity date | 15-Nov-23 | ' |
Series L Notes [Member] | Notes Payable to Banks [Member] | ' | ' |
Long-term debt balance | 50,000 | 0 |
Interest rate | 4.18% | ' |
Maturity date | 15-Nov-25 | ' |
Domestic Line Of Credit [Member] | ' | ' |
Long-term debt balance | 0 | 200,000 |
Debt Instrument, Description of Variable Rate Basis | 'prime rate or an adjusted LIBOR | ' |
Revolving Credit Facility [Member] | ' | ' |
Credit facility effective interest rate on outstanding borrowing | 1.20% | ' |
Long-term debt, excluding current portion | 84,000 | ' |
Revolving Credit Facility [Member] | Minimum [Member] | ' | ' |
Debt Instrument, Description of Variable Rate Basis | '0.85% | ' |
Revolving Credit Facility [Member] | Maximum [Member] | ' | ' |
Debt Instrument, Description of Variable Rate Basis | '1.65% | ' |
Revolving Credit Agreement [Member] | ' | ' |
Long-term debt balance | 105,000 | 0 |
Debt Instrument, Description of Variable Rate Basis | 'LIBOR | ' |
Short-term Debt | $21,000 | ' |
Chinese Credit Facility, RMB Denominated Loan [Member] | ' | ' |
Debt Instrument, Description of Variable Rate Basis | 'interest at the prevailing interest rate offered by the People's Bank of China on the date of borrowing, plus a margin equal to 25% of that prevailing rate | ' |
Chinese Credit Facility, USD Denominated Loan [Member] | ' | ' |
Debt Instrument, Description of Variable Rate Basis | 'interest at the lender's cost of borrowing rate at the date of borrowing, plus 3% | ' |
Longterm_Debt_Schedule_of_Futu
Long-term Debt (Schedule of Future Principal Payments of Long-term Debt) (Details) (The Notes [Member], USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
The Notes [Member] | ' |
2014 (remaining) | $0 |
2015 | 0 |
2016 | 107,000 |
2017 | 0 |
2018 | 0 |
Thereafter | 393,000 |
Long-term debt balance | $500,000 |
Accrued_Liabilities_Accrued_Li
Accrued Liabilities (Accrued Liabilities) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||||
Accrued Liabilities | ' | ' | ' | ' |
Salaries and other member benefits | $36,912 | $66,212 | ' | ' |
Warranties | 16,418 | 15,224 | 14,568 | 15,742 |
Interest payable | 11,951 | 11,437 | ' | ' |
Current portion of acquired performance obligations and unfavorable contracts | 23,622 | 23,977 | ' | ' |
Accrued retirement benefits | 2,243 | 2,276 | ' | ' |
Deferred revenues | 5,930 | 6,304 | ' | ' |
Taxes, other than income | 9,205 | 6,504 | ' | ' |
Other | 21,732 | 29,807 | ' | ' |
Accrued liabilities | $128,013 | $161,741 | ' | ' |
Accrued_Liabilities_Warranties
Accrued Liabilities (Warranties) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accrued Liabilities | ' | ' |
Warranties, beginning of period | $15,224 | $15,742 |
Warranty Expense | 5,333 | 4,785 |
Increases due to acquisition of Duarte Business | 0 | 157 |
Reductions for settling warranties | -4,317 | -6,068 |
Foreign currency exchange rate changes | 178 | -48 |
Warranties, end of period | $16,418 | $14,568 |
Other_Liabilities_Details
Other Liabilities (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities | ' | ' |
Net accrued retirement benefits, less amounts recognized within accrued liabilities | $38,409 | $39,956 |
Total unrecognized tax benefits, net of offsetting adjustments | 15,916 | 20,343 |
Acquired performance obligations and unfavorable contracts | 17,030 | 23,951 |
Other | 29,949 | 21,260 |
Other liabilities | $101,304 | $105,510 |
Other_Income_Expense_Net_Detai
Other (Income) Expense, Net (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Other (Income) Expense, Net | ' | ' | ' | ' |
Net (gain) loss on sale of assets | $165 | ($229) | $136 | ($230) |
Rent income | -145 | -131 | -294 | -260 |
Net gain on investments in deferred compensation program | -145 | -417 | -573 | -526 |
Other | -65 | -113 | -66 | -136 |
Other (income) expense, net | ($190) | ($890) | ($797) | ($1,152) |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 |
Income Taxes | ' | ' | ' |
Income tax expense reduction due to research and experimentation tax credit | ' | $6,847 | ' |
Estimated decrease in liability for unrecognized tax benefits | 379 | ' | ' |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 13,705 | ' | 17,838 |
Accrued interest and penalties | 1,542 | ' | 2,066 |
Unrecognized Tax Benefits | 16,465 | ' | 22,694 |
Net favorable amount as a result of resolutions and lapses of statutes of limitations | $5,573 | ' | ' |
Income_Taxes_Tax_Expense_and_E
Income Taxes (Tax Expense and Effective Tax Rate) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes | ' | ' | ' | ' |
Earnings before income taxes | $56,756 | $50,336 | $89,700 | $88,873 |
Income tax expense | $11,958 | $7,890 | $21,519 | $19,059 |
Effective tax rate | 21.10% | 15.70% | 24.00% | 21.40% |
Retirement_Benefits_Narrative_
Retirement Benefits (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Value of Company Stock Contributed to Defined Contribution Benefit Plans | $11,193 | $9,780 | ' | ' |
Treasury Stock Issued During Period, Shares, Employee Benefit Plans | 260 | 250 | ' | ' |
Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Contributions paid | 796 | 1,943 | 2,467 | 5,257 |
Net periodic retirement pension (beneift) cost | 401 | 1,067 | 808 | 2,156 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' | ' |
Contributions paid | 200 | 1,500 | 300 | 3,000 |
Net periodic retirement pension (beneift) cost | 142 | 815 | 292 | 1,632 |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Contributions paid | 596 | 443 | 2,167 | 2,257 |
Net periodic retirement pension (beneift) cost | 259 | 252 | 516 | 524 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Net periodic retirement pension (beneift) cost | 281 | 273 | 561 | 545 |
Total stockholders equity | ' | ' | ' | ' |
Value of Company Stock Contributed to Defined Contribution Benefit Plans | ' | ' | 11,193 | 9,780 |
Treasury Stock at Cost [Member] | ' | ' | ' | ' |
Value of Company Stock Contributed to Defined Contribution Benefit Plans | ' | ' | $8,356 | $7,857 |
Treasury Stock Issued During Period, Shares, Employee Benefit Plans | ' | ' | 260 | 250 |
Retirement_Benefits_Schedule_o
Retirement Benefits (Schedule of Costs of Retirement Plans) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Multiemployer Plan [Member] | ' | ' | ' | ' |
Company Contributions | $185 | $201 | $375 | $411 |
Defined Contribution Plan [Member] | ' | ' | ' | ' |
Company Costs | $5,393 | $4,449 | $10,682 | $9,373 |
Retirement_Benefits_Schedule_o1
Retirement Benefits (Schedule of Net Perioodic Benefit Costs) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Service cost | $1,134 | $1,369 | $2,265 | $2,757 |
Interest cost | 2,208 | 1,917 | 4,413 | 3,857 |
Expected return on plan assets | -3,203 | -2,693 | -6,394 | -5,417 |
Amortization of: Net actuarial (gain) loss | 245 | 458 | 489 | 926 |
Amortization of: Prior service cost (benefit) | 17 | 16 | 35 | 33 |
Net periodic retirement pension (beneift) cost | 401 | 1,067 | 808 | 2,156 |
Contributions paid | 796 | 1,943 | 2,467 | 5,257 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' | ' |
Service cost | 872 | 1,107 | 1,744 | 2,214 |
Interest cost | 1,603 | 1,392 | 3,213 | 2,784 |
Expected return on plan assets | -2,433 | -2,045 | -4,867 | -4,090 |
Amortization of: Net actuarial (gain) loss | 82 | 343 | 165 | 687 |
Amortization of: Prior service cost (benefit) | 18 | 18 | 37 | 37 |
Net periodic retirement pension (beneift) cost | 142 | 815 | 292 | 1,632 |
Contributions paid | 200 | 1,500 | 300 | 3,000 |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Service cost | 262 | 262 | 521 | 543 |
Interest cost | 605 | 525 | 1,200 | 1,073 |
Expected return on plan assets | -770 | -648 | -1,527 | -1,327 |
Amortization of: Net actuarial (gain) loss | 163 | 115 | 324 | 239 |
Amortization of: Prior service cost (benefit) | -1 | -2 | -2 | -4 |
Net periodic retirement pension (beneift) cost | 259 | 252 | 516 | 524 |
Contributions paid | 596 | 443 | 2,167 | 2,257 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Service cost | 12 | 18 | 24 | 36 |
Interest cost | 358 | 311 | 716 | 622 |
Amortization of: Net actuarial (gain) loss | -50 | -17 | -100 | -34 |
Amortization of: Prior service cost (benefit) | -39 | -39 | -79 | -79 |
Net periodic retirement pension (beneift) cost | 281 | 273 | 561 | 545 |
Contributions paid | $862 | $587 | $1,368 | $1,343 |
Retirement_Benefits_Schedule_o2
Retirement Benefits (Schedule of estimated remaining cash contributions) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' |
Estimated future employer contributions in the currect fiscal year | $200 |
United Kingdom Plan, Defined Benefit [Member] | ' |
Estimated future employer contributions in the currect fiscal year | 927 |
Japan Plan, Defined Benefit [Member] | ' |
Estimated future employer contributions in the currect fiscal year | 0 |
Switzerland Plan, Defined Benefit [Member] | ' |
Estimated future employer contributions in the currect fiscal year | 66 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' |
Estimated future employer contributions in the currect fiscal year | $2,586 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 |
Number of stock shares authorized for grants | 7,410 | 7,410 |
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | 15,984 | 15,984 |
Unrecognized compensation cost is expected to be recognized over a weighted-average period | ' | '2 years 1 month 6 days |
Forfeiture rate, Board of Directors | 0.00% | 0.00% |
Forfeiture rate, non-Board of Directors | 9.00% | 9.00% |
Stock Options [Member] | ' | ' |
Vesting period, in years | ' | '4 years |
Vesting rate | ' | 25.00% |
Vested contractual term, in years | ' | '10 years |
Restricted Stock Award [Member] | ' | ' |
Vesting period, in years | ' | '4 years |
Shares granted, Number of Shares | 0 | 24 |
Terms of restricted stock award | ' | 'Subject to Mr. Gendron's continued employment by the Company, these shares of restricted stock will vest 100% following the end of the Company's fiscal year 2017 if a cumulative earnings per share ("EPS") target is met or exceeded for fiscal years 2014 through 2017. If this EPS target is not met, all shares of restricted stock will be forfeited by Mr. Gendron.The shares of restricted stock were awarded to Mr. Gendron pursuant to a form restricted stock agreement approved by Woodward's Compensation Committee (the "Committee"), which generally provides that: if the recipient of a restricted stock award is terminated from the Company for any reason other than death or disability during the restricted period, all shares of restricted stock will be immediately forfeited; if the recipient dies or becomes permanently disabled prior to the recipient's termination and during the restricted period, all restrictions will lapse and the shares of restricted stock will fully vest immediately; similarly, in the event of a Change in Control (as defined in the form of restricted stock agreement) of the Company during the restricted period and prior to the recipient's termination for any reason, all restrictions will lapse and the shares of restricted stock will fully vest immediately; during the restricted period, a recipient may exercise full voting rights with respect to the shares of restricted stock; dividends on the shares of restricted stock will accrue, but will not be paid, during the restricted period; and all dividends accrued during the restricted period will be paid upon any vesting of the shares of restricted stock, without payment of interest, provided that if the shares of restricted stock are forfeited for any reason, all accrued dividends will likewise be forfeited. The form of restricted stock agreement also includes adjustment provisions in the event the Company engages in certain recapitalization or similar transactions or in the event of a change of law or regulation. Upon vesting, shares become freely transferrable |
Service period for restricted stock award | ' | '4 years |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards) (Details) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||
Expected term | '5 years 9 months 18 days | '5 years 9 months 18 days | '5 years 9 months 18 days | '8 years 7 months 6 days | '8 years 7 months 6 days |
Estimated volatility | 54.90% | 38.50% | 48.70% | 38.50% | 54.90% |
Estimated dividend yield | 0.80% | 0.80% | 0.80% | 0.80% | 1.00% |
Risk-free interest rate | 1.00% | 1.70% | 0.80% | 2.50% | 1.30% |
StockBased_Compensation_Activi
Stock-Based Compensation (Activity for Stock Option Awards) (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 |
Stock-Based Compensation | ' | ' |
Number of options, beginning balance | 4,947 | 4,423 |
Weighted Average Exercise Price Per Share, beginning balance | $27.23 | $25.06 |
Options granted, Number of options | 0 | 694 |
Options granted, Weighted Average Exercise Price Per Share | ' | $40.99 |
Options exercised, Number of options | -197 | -354 |
Options exercised, Weighted Average Exercise Price Per Share | $13.93 | $19.39 |
Options forfeited, Number of options | -28 | -41 |
Options forfeited, Weighted Average Exercise Price Per Share | $34.30 | $34.75 |
Number of options, ending balance | 4,722 | 4,722 |
Weighted Average Exercise Price Per Share, ending balance | $27.74 | $27.74 |
StockBased_Compensation_Change
Stock-Based Compensation (Changes in Nonvested Stock Options) (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 |
Options granted, Number of options | 0 | 694 |
Stock Options [Member] | ' | ' |
Number of Options, beginning balance | 1,771 | 1,737 |
Weighted-Average Exercise Price Per Share, beginning balance | 34.75 | 29.97 |
Options granted, Number of options | 0 | 694 |
Options granted, Weighted-Average Exercise Price Per Share | ' | 40.99 |
Options vested, Number of options | -36 | -683 |
Options vested, Weighted-Average Exercise Price Per Share | 32.66 | 28.82 |
Options forfeited, Number of options | -28 | -41 |
Options forfeited, Weighted-Average Exercise Price Per Share | 34.3 | 34.75 |
Number of Options, ending balance | 1,707 | 1,707 |
Weighted-Average Exercise Price Per Share, ending balance | 34.8 | 34.8 |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Options Vested, Or Expected to Vest and Are Exercisable) (Details) (USD $) | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Stock-Based Compensation | ' | ' | ' |
Options outstanding, Number of options | 4,722 | 4,947 | 4,423 |
Options outstanding, Weighted-Average Exercise Price | $27.74 | $27.23 | $25.06 |
Options outstanding, Weighted-Average Remaining Life in Years | '5 years 10 months 24 days | ' | ' |
Options outstanding, Aggregate Intrinsic Value | $65,132 | ' | ' |
Options vested and exercisable, Number of options | 3,014 | ' | ' |
Options vested and exercisable, Weighted-Average Exercise Price Per Share | $23.75 | ' | ' |
Options vested and exercisable, Weighted-Average Remaining Life in Years | '4 years 6 months | ' | ' |
Options vested and exercisable, Aggregate Intrinsic Value | 53,614 | ' | ' |
Options vested and expected to vest, Number of options | 4,596 | ' | ' |
Options vested and expected to vest, Weighted-Average Exercise Price Per Share | $27.51 | ' | ' |
Options vested and to expected vest, Weighted-Average Remaining Life in Years | '5 years 10 months 24 days | ' | ' |
Options vested and expected to vest, Aggregate Intrinsic Value | $64,465 | ' | ' |
StockBased_Compensation_Change1
Stock-Based Compensation (Changes in Restricted Stock Awards) (Details) (Restricted Stock Award [Member], USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 |
Restricted Stock Award [Member] | ' | ' |
Number of shares, beginning balance | 24 | 0 |
Weighted-Average Grant Date Fair Value Per Share, beginning balance | $39.43 | ' |
Shares granted, Number of Shares | 0 | 24 |
Shares granted, Weighted-Average Grant Date Fair Value Per Share | ' | $39.43 |
Shares vested, Number of Shares | 0 | 0 |
Shares forfeited, Number of Shares | 0 | 0 |
Number of shares, ending balance | 24 | 24 |
Weighted-Average Grant Date Fair Value Per Share, ending balance | $39.43 | $39.43 |
Segment_Information_Consolidat
Segment Information (Consolidated Net Sales and Earnings by Segment) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Net sales | $482,467 | $485,513 | $911,509 | $893,852 |
Interest expense, net | -6,128 | -6,948 | -12,131 | -13,336 |
Consolidated earnings before income taxes | 56,756 | 50,336 | 89,700 | 88,873 |
Total of Reporting Segments [Member] | ' | ' | ' | ' |
Segment earnings (loss) | 72,177 | 65,458 | 121,797 | 120,934 |
Aerospace [Member] | ' | ' | ' | ' |
Net sales | 261,021 | 270,493 | 490,893 | 481,882 |
Segment earnings (loss) | 40,289 | 41,223 | 62,838 | 72,791 |
Energy [Member] | ' | ' | ' | ' |
Net sales | 221,446 | 215,020 | 420,616 | 411,970 |
Segment earnings (loss) | 31,888 | 24,235 | 58,959 | 48,143 |
Unallocated Corporate [Member] | ' | ' | ' | ' |
Segment earnings (loss) | ($9,293) | ($8,174) | ($19,966) | ($18,725) |
Segment_Information_Consolidat1
Segment Information (Consolidated Total Assets by Segment) (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Assets | $2,238,440 | $2,218,518 |
Property, plant and equipment, net | 401,050 | 350,048 |
Aerospace [Member] | ' | ' |
Assets | 1,362,822 | 1,361,861 |
Energy [Member] | ' | ' |
Assets | 586,551 | 599,007 |
Unallocated Corporate [Member] | ' | ' |
Property, plant and equipment, net | 62,944 | 50,115 |
Other unallocated assets | 226,123 | 207,535 |
Total of Reporting Segments [Member] | ' | ' |
Assets | $1,949,373 | $1,960,868 |