Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Nov. 06, 2015 | Mar. 31, 2015 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | WOODWARD, INC. | ||
Entity Central Index Key | 108,312 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 63,209,585 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,237,673,753 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Consolidated Statements of Earnings | |||
Net sales | $ 2,038,303 | $ 2,001,240 | $ 1,935,976 |
Costs and expenses: | |||
Cost of goods sold | 1,453,718 | 1,425,839 | 1,376,271 |
Selling, general and administrative expenses | 156,995 | 155,339 | 168,097 |
Research and development costs | 134,485 | 138,005 | 130,250 |
Amortization of intangible assets | 29,241 | 33,580 | 36,979 |
Interest expense | 24,864 | 22,804 | 26,703 |
Interest income | (787) | (271) | (273) |
Other (income) expense, net (Note 15) | (1,162) | (1,300) | (1,622) |
Total costs and expenses | 1,797,354 | 1,773,996 | 1,736,405 |
Earnings before income taxes | 240,949 | 227,244 | 199,571 |
Income tax expense | 59,497 | 61,400 | 53,629 |
Net earnings | $ 181,452 | $ 165,844 | $ 145,942 |
Earnings per share (Note 3): | |||
Basic earnings per share | $ 2.81 | $ 2.50 | $ 2.13 |
Diluted earnings per share | $ 2.75 | $ 2.45 | $ 2.10 |
Weighted Average Common Shares Outstanding (Note 3): | |||
Basic | 64,684 | 66,432 | 68,392 |
Diluted | 66,056 | 67,776 | 69,602 |
Cash dividends per share paid to Woodward common stockholders | $ 0.38 | $ 0.32 | $ 0.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Comprehensive earnings | |||
Net earnings | $ 181,452 | $ 165,844 | $ 145,942 |
Other comprehensive earnings: | |||
Foreign currency translation adjustments | (34,989) | (16,003) | 7,337 |
Gain on foreign currency transaction designated as a hedge of a net investment in a foreign subsidiary | 572 | 0 | 0 |
Taxes on changes on foreign currency translation adjustments | 1,988 | 1,080 | 958 |
Foreign currency translation adjustments, net of tax | (32,429) | (14,923) | 8,295 |
Reclassification of net realized losses on derivatives to earnings | 99 | 99 | 171 |
Realized gain on cash flow hedge | 0 | 0 | 507 |
Taxes on changes on derivative transactions | (38) | (37) | (259) |
Derivative adjustments, net of tax | 61 | 62 | 419 |
Minimum retirement benefit liability adjustments (Note 17): | |||
Net gain (loss) arising during the period | (26,866) | 3,746 | 26,756 |
Prior service cost arising during the period | 0 | (3,355) | 0 |
Loss (gain) due to settlement or curtailment arising during the period | 0 | (7,539) | 36 |
Amortization of prior service cost (benefit) | 225 | (66) | (90) |
Amortization of net loss | 513 | 785 | 1,770 |
Foreign currency exchange rate changes on minimum retirement benefit liabilities | 867 | 104 | 673 |
Taxes on changes on minimum retirement benefit liability adjustments | 9,704 | 2,538 | (11,021) |
Minimum retirement benefit liability adjustments, net of tax | (15,557) | (3,787) | 18,124 |
Total comprehensive earnings | $ 133,527 | $ 147,196 | $ 172,780 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 82,202 | $ 115,287 |
Accounts receivable, less allowance for uncollectible amounts of $3,841 and $7,078, respectively | 322,215 | 346,858 |
Inventories | 447,664 | 451,944 |
Income taxes receivable | 21,838 | 6,574 |
Deferred income tax assets | 29,766 | 40,774 |
Other current assets | 43,791 | 47,207 |
Total current assets | 947,476 | 1,008,644 |
Property, plant and equipment, net | 756,100 | 513,279 |
Goodwill | 556,977 | 559,724 |
Intangible assets, net | 225,138 | 254,772 |
Deferred income tax assets | 9,388 | 6,292 |
Other assets | 44,886 | 54,491 |
Total assets | 2,539,965 | 2,397,202 |
Current liabilities: | ||
Short-term borrowings | 2,430 | 0 |
Accounts payable | 173,287 | 160,683 |
Income taxes payable | 6,555 | 6,130 |
Deferred income tax liabilities | 14 | 472 |
Accrued liabilities | 155,936 | 172,731 |
Total current liabilities | 338,222 | 340,016 |
Long-term debt, less current portion | 850,000 | 710,000 |
Deferred income tax liabilities | 82,449 | 85,031 |
Other liabilities | 116,190 | 101,211 |
Total liabilities | $ 1,386,861 | $ 1,236,258 |
Commitments and contingencies (Note 19) | ||
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 | 131,231 | 112,491 |
Accumulated other comprehensive earnings (losses) | (51,458) | (3,533) |
Deferred compensation | 4,322 | 3,915 |
Retained earnings | 1,495,274 | 1,338,468 |
Stockholders' equity excluding treasury stock | 1,579,475 | 1,451,447 |
Treasury stock at cost, 9,763 shares and 7,397 shares, respectively | (422,049) | (286,588) |
Treasury stock held for deferred compensation, at cost, 173 shares and 198 shares, respectively | (4,322) | (3,915) |
Total Stockholders' Equity | 1,153,104 | 1,160,944 |
Total liabilities and stockholders' equity | $ 2,539,965 | $ 2,397,202 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Allowance, accounts receivable | $ 3,841 | $ 7,078 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.003 | $ 0.003 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001455 | $ 0.001455 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 72,960,000 | 72,960,000 |
Treasury stock, shares | 9,763,000 | 7,397,000 |
Treasury stock held for deferred compensation, shares | 173,000 | 198,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | |||
Net earnings | $ 181,452 | $ 165,844 | $ 145,942 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 75,235 | 77,353 | 74,233 |
Loss (gain) due to settlements or curtailments of postretirement plan (Note 17) | 0 | (7,539) | 37 |
Impairment of long-lived asset held for sale (Note 9) | 0 | 3,138 | 0 |
Net (gain) loss on sales of assets | (626) | 166 | (100) |
Stock-based compensation | 14,255 | 11,241 | 9,414 |
Excess tax benefits from stock-based compensation | (6,959) | (3,751) | (5,154) |
Deferred income taxes | 15,504 | (6,704) | 8,348 |
Loss on derivatives reclassified from accumulated comprehensive earnings into earnings | 99 | 99 | 171 |
Changes in operating assets and liabilities, net of business acquisitions: | |||
Accounts receivable | 14,845 | 30,880 | (9,774) |
Inventories | (8,824) | (27,788) | (1,485) |
Accounts payable and accrued liabilities | 1,427 | 24,068 | 16,062 |
Current income taxes | (7,487) | 9,378 | (9,020) |
Retirement benefit obligations | (4,537) | (2,788) | (15,974) |
Other | 13,045 | (5,514) | 9,892 |
Net cash provided by operating activities | 287,429 | 268,083 | 222,592 |
Cash flows from investing activities: | |||
Payments for purchase of property, plant and equipment | (286,612) | (207,106) | (141,600) |
Proceeds from sale of assets | 2,529 | 1,277 | 418 |
Business acquisitions, net of cash acquired | 0 | 0 | (198,860) |
Net cash used in investing activities | (284,083) | (205,829) | (340,042) |
Cash flows from financing activities: | |||
Cash dividends paid | (24,646) | (21,263) | (21,866) |
Proceeds from sales of treasury stock | 8,400 | 9,772 | 8,370 |
Payments for repurchases of common stock | (157,160) | (141,488) | (45,754) |
Excess tax benefits from stock compensation | 6,959 | 3,751 | 5,154 |
Borrowings on revolving lines of credit and short-term borrowings | 999,971 | 431,071 | 179,072 |
Payments on revolving lines of credit and short-term borrowings | (856,610) | (221,069) | (179,484) |
Proceeds from issuance of long-term debt | 0 | 250,000 | 200,000 |
Payments of long-term debt | 0 | (300,000) | (41,875) |
Proceeds from cash flow hedge | 0 | 0 | 507 |
Payments of debt financing costs | (2,359) | (1,297) | (1,651) |
Net cash provided by (used in) financing activities | (25,445) | 9,477 | 102,473 |
Effect of exchange rate changes on cash and cash equivalents | (10,986) | (5,000) | 1,704 |
Net change in cash and cash equivalents | (33,085) | 66,731 | (13,273) |
Cash and cash equivalents at beginning of period | 115,287 | 48,556 | 61,829 |
Cash and cash equivalents at end of period | $ 82,202 | $ 115,287 | $ 48,556 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | 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 |
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) | |
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) | |
Balance, Common Stock, shares at Sep. 30, 2012 | 72,960,000 | |||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2012 | (4,536,000) | |||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2012 | (276,000) | |||||||||||
Net earnings | 145,942 | 145,942 | $ 145,942 | |||||||||
Other comprehensive income (loss), net of tax | 26,838 | 26,838 | 8,295 | 419 | 18,124 | |||||||
Cash dividends paid | (21,866) | (21,866) | ||||||||||
Purchases of treasury stock | (51,846) | $ (51,846) | ||||||||||
Purchases of treasury stock, shares | (1,395,000) | |||||||||||
Sales of treasury stock | 10,916 | (13,194) | $ 24,110 | |||||||||
Sales of treasury stock, shares | 796,000 | |||||||||||
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 stock-based compensation | 5,154 | 5,154 | ||||||||||
Stock-based compensation | 9,414 | 9,414 | ||||||||||
Transfer of stock to deferred compensation plan | 98 | 24 | 97 | $ 74 | $ (97) | |||||||
Transfer of stock to deferred compensation plan, shares | 2,000 | (2,000) | ||||||||||
Purchases of stock by deferred compensation plan | 79 | $ (79) | ||||||||||
Purchases of stock by deferred compensation plan, shares | (2,000) | |||||||||||
Distribution of stock from deferred compensation plan | (513) | $ 513 | ||||||||||
Distribution of stock from deferred compensation plan, shares | 48,000 | |||||||||||
Balance, Common Stock, shares at Sep. 30, 2013 | 72,960,000 | |||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2013 | (4,883,000) | |||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2013 | (232,000) | |||||||||||
Balances at Sep. 30, 2014 | 1,160,944 | $ 106 | 112,491 | (3,533) | 10,819 | 105 | (14,457) | 3,915 | 1,338,468 | $ (286,588) | $ (3,915) | 1,160,944 |
Balance, Treasury Stock, shares at Sep. 30, 2013 | (4,883,000) | |||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2013 | (232,000) | |||||||||||
Net earnings | 165,844 | 165,844 | $ 165,844 | |||||||||
Other comprehensive income (loss), net of tax | (18,648) | (18,648) | (14,923) | 62 | (3,787) | |||||||
Cash dividends paid | (21,263) | (21,263) | ||||||||||
Purchases of treasury stock | (144,510) | $ (144,510) | ||||||||||
Purchases of treasury stock, shares | (3,336,000) | |||||||||||
Sales of treasury stock | 11,059 | (6,217) | $ 17,276 | |||||||||
Sales of treasury stock, shares | 562,000 | |||||||||||
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 stock-based compensation | 3,483 | 3,483 | ||||||||||
Stock-based compensation | 11,241 | 11,241 | ||||||||||
Purchases of stock by deferred compensation plan | 370 | $ (370) | ||||||||||
Purchases of stock by deferred compensation plan, shares | (8,000) | |||||||||||
Distribution of stock from deferred compensation plan | (462) | $ 462 | ||||||||||
Distribution of stock from deferred compensation plan, shares | 42,000 | |||||||||||
Balance, Preferred Stock, shares at Sep. 30, 2014 | 0 | |||||||||||
Balance, Common Stock, shares at Sep. 30, 2014 | 72,960,000 | 72,960,000 | ||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2014 | (7,397,000) | (7,397,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2014 | (198,000) | (198,000) | ||||||||||
Balances at Sep. 30, 2015 | 1,153,104 | $ 106 | 131,231 | (51,458) | (21,610) | 166 | (30,014) | 4,322 | 1,495,274 | $ (422,049) | $ (4,322) | $ 1,153,104 |
Balance, Treasury Stock, shares at Sep. 30, 2014 | (7,397,000) | (7,397,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2014 | (198,000) | (198,000) | ||||||||||
Net earnings | 181,452 | 181,452 | $ 181,452 | |||||||||
Other comprehensive income (loss), net of tax | (47,925) | $ (47,925) | $ (32,429) | $ 61 | $ (15,557) | |||||||
Cash dividends paid | (24,646) | $ (24,646) | ||||||||||
Purchases of treasury stock | (160,294) | $ (160,294) | ||||||||||
Purchases of treasury stock, shares | (3,193,000) | |||||||||||
Sales of treasury stock | 9,932 | (6,817) | $ 16,749 | |||||||||
Sales of treasury stock, shares | 568,000 | |||||||||||
Common shares issued from treasury stock for benefit plans | 12,574 | 4,490 | $ 8,084 | |||||||||
Common shares issued from treasury stock for benefit plans, shares | 259,000 | |||||||||||
Tax benefit attributable to stock-based compensation | 6,812 | 6,812 | ||||||||||
Stock-based compensation | $ 14,255 | $ 14,255 | ||||||||||
Transfer of stock to deferred compensation plan | 893 | $ (893) | ||||||||||
Purchases of stock by deferred compensation plan, shares | (18,000) | |||||||||||
Distribution of stock from deferred compensation plan | $ (486) | $ 486 | ||||||||||
Distribution of stock from deferred compensation plan, shares | 43,000 | |||||||||||
Balance, Preferred Stock, shares at Sep. 30, 2015 | 0 | |||||||||||
Balance, Common Stock, shares at Sep. 30, 2015 | 72,960,000 | 72,960,000 | ||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2015 | (9,763,000) | (9,763,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2015 | (173,000) | (173,000) |
Operations and summary of signi
Operations and summary of significant accounting policies | 12 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation | |
Operations and Summary of Significant Accounting Policies | Note 1. Operations and su mmary of significant accounting policies Basis of presentation The Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Woodward, Inc. and its subsidiaries (collectively “Woodward” or “the Company”). Dollar amounts contained in these Consolidated Financial Statements are in thousands, except per share amounts. Nature of operations Woodward enhances the global quality of life, creating innovative energy control solutions that optimize the performance, efficiency and emissions of our customers’ products . Woodward is an independent designer, manufacturer, and service provider of energy control and optimization solutions. Woodward designs, produces and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in challenging environments. Woodward has significant production and assembly facilities in the United States, Europe and Asia, and promotes its products and services through its worldwide locations. Woodward’s strategic focus is providing energy control and optimization solutions for the aerospace, industrial and energy markets. The precise and efficient control of energy, including fluid and electrical energy, combustion, and motion, is a growing requirement in the markets it serves. Woodward’s customers look to it to optimize the efficiency, emissions and operation of power equipment in both commercial and defense operations. Woodward’s core technologies leverage well across its markets and customer applications, enabling it to develop and integrate cost-effective and state-of-the-art fuel, combustion, fluid, actuation and electronic systems. Woodward focuses its solutions and services primarily on serving original equipment manufacturers (“OEMs”) and equipment packagers, partnering with them to bring superior component and system solutions to their demanding applications. Woodward also provides aftermarket repair, replacement and other service support for its installed products. Woodward’s components and integrated systems optimize performance of commercial aircraft, defense aircraft, ground vehicles and other equipment, gas and steam turbines, wind turbines, including converters and power grid related equipment, industrial diesel, gas, alternative and dual fuel reciprocating engines, and electrical power systems. Woodward’s innovative fluid energy, combustion control, electrical energy, and motion control systems help its customers offer more cost-effective, cleaner, and more reliable equipment. Summary of significant accounting policies Principles of consolidation: These Consolidated Financial Statements are prepared in accordance with U.S. GAAP and include the accounts of Woodward and its wholly and majority-owned subsidiaries. Transactions within and between these companies are eliminated. Use of estimates: The preparation of the Consolidated Financial Statements requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, at the date of the financial statements and the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures. Significant estimates include allowances for uncollectible amounts, net realizable value of inventories, customer rebates earned, useful lives of property and identifiable intangible assets, the evaluation of impairments of property, identifiable intangible assets and goodwill, the provision for income tax and related 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 contingencies. Actual results could vary materially from Woodward’s estimates. Foreign currency exchange rates: The assets and liabilities of substantially all subsidiaries outside the United States are translated at fiscal year-end rates of exchange, and earnings and cash flow statements are translated at weighted-average rates of exchange. Translation adjustments are accumulated with other comprehensive (loss) earnings as a separate component of stockholders’ equity and are presented net of tax effects in the Consolidated Statements of Stockholders’ Equity. The effects of changes in foreign currency exchange rates on loans between consolidated subsidiaries, that are considered permanent in nature, are also accumulated with other comprehensive earnings, net of tax. The Company is exposed to market risks related to fluctuations in foreign currency exchange rates because some sales transactions, and certain of the assets and liabilities of its domestic and foreign subsidiaries, are denominated in foreign currencies. Selling, general, and administrative expenses include net foreign currency losses of $1,721 in fiscal year 2015, $1,089 in fiscal year 2014, and $2,738 in fiscal year 2013. Revenue recognition: Woodward recognizes revenue upon shipment or delivery of products or services and when collectability is reasonably assured. Delivery is upon completion of manufacturing, customer acceptance, and the transfer of the risks and rewards of ownership. In countries whose laws provide for retention of some form of title by sellers, enabling recovery of goods in the event of customer default on payment, product delivery is considered to have occurred when the customer has assumed the risks and rewards of ownership of the products. Occasionally, Woodward transfers title of product to customers, but retains substantive performance obligations such as completion of product testing, customer acceptance or in some instances regulatory acceptance. In addition, occasionally customers pay Woodward for products or services prior to Woodward satisfying its performance obligation. Under these circumstances, revenue is deferred until the performance obligations are satisfied. In addition, service revenue is also recognized upon completion of applicable performance obligations. Certain Woodward products include incidental software or firmware essential to the performance of the product as designed, which are treated as units of accounting associated with the related tangible product with which the software is included. Woodward does not sell software on a standalone basis, although software upgrades, if any, are generally paid for by the customer. Product freight costs are included in cost of goods sold. Freight costs charged to customers are included in net sales. Taxes collected from customers and remitted to government authorities are excluded from revenue and are recorded as liabilities until the taxes are remitted to the appropriate U.S. or foreign government authority. Net sales from service activities were less than 10% of total net sales for fiscal years 2015, 2014 and 2013. Customer payments: Woodward occasionally agrees to make payments to certain customers in order to participate in anticipated sales activity. Payments made to customers are accounted for as a reduction of revenue unless they are made in exchange for identifiable goods or services with fair values that can be reasonably estimated. Reductions in revenue associated with these customer payments are recognized immediately to the extent that the payments cannot be attributed to anticipated future sales, and are recognized in future periods to the extent that the payments relate to anticipated future sales. Such determinations are based on the facts and circumstances underlying each payment. Stock-based compensation: Compensation cost relating to stock-based payment awards made to employees and directors is recognized in the financial statements using a fair value method. Non-qualified stock option awards and restricted stock awards are issued under Woodward’s stock-based compensation plans. The cost of such awards, measured at the grant date, is based on the estimated fair value of the award. Forfeitures are estimated at the time of each grant in order to estimate the portion of the award that will ultimately vest. The estimate is based on Woodward’s historical rates of forfeitures and is updated periodically. The portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods, which is generally the vesting period of the awards. Research and development costs : Company funded expenditures related to new product development, and significant product enhancement and/or upgrade activities are expensed as incurred and are separately reported in the Consolidated Statements of Earnings. Income taxes: Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of Woodward’s assets, liabilities, and certain unrecognized gains and losses recorded in accumulated other comprehensive earnings. Woodward provides for taxes that may be payable if undistributed earnings of overseas subsidiaries were to be remitted to the United States, except for those earnings that it considers to be indefinitely invested. Cash equivalents: Highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. Cash and cash equivalents are maintained with multiple financial institutions. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. Woodward holds cash and cash equivalents at financial institutions in excess of amounts covered by the Federal Depository Insurance Corporation (the “FDIC”), sometimes invests excess cash in money market funds not insured by the FDIC, and holds cash and cash equivalents outside the United States that are not insured by the FDIC. Accounts receivable: Almost all of Woodward’s sales are made on credit and result in accounts receivable, which are recorded at the amount invoiced and are generally not collateralized. In the normal course of business, not all accounts receivable are collected and, therefore, an allowance for uncollectible amounts 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, bankers’ acceptance notes issued by creditworthy Chinese banks. Bankers’ acceptance notes are financial instruments issued by Chinese financial institutions as part of financing arrangements between the financial institution and a customer of the financial institution. Bankers’ acceptance notes 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 banker’s acceptance note as of the maturity date. The maturity date of bankers’ acceptance notes varies, but it is Woodward’s policy to only accept bankers’ acceptance notes 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 banker’s acceptance note from a customer, such customer has no further obligation to pay Woodward for the related accounts receivable balance. Woodward only accepts bankers’ acceptance notes issued by creditworthy banks as to which the credit risk associated with the bankers acceptance note is assessed to be minimal. The composition of Woodward’s accounts receivable at September 30, 2015 and September 30, 2014 follows: September 30, September 30, 2015 2014 Accounts receivable from: Customers $ $ Other (Chinese financial institutions) Allowance for uncollectible customer amounts $ $ Inventories: Inventories are valued at the lower of cost or net realizable value, with cost being determined using methods that approximate a first-in, first-out basis. Customer deposits are recorded against inventory when the right of offset exists. There were no customer deposits included in inventory as of September 30, 2015 and 2014. All other customer deposits are recorded in accrued liabilities. Property, plant, and equipment: Property, plant, and equipment are recorded at cost and are depreciated over the estimated useful lives of the assets. Assets are generally depreciated using the straight-line method or units of production method. Assets are tested for recoverability whenever events or circumstances indicate the carrying value may not be recoverable. Estimated lives over which fixed assets are generally depreciated at September 30, 2015 were as follows: Land improvements 3 - 40 years Buildings and improvements 3 - 40 years Leasehold improvements 1 - 40 years Machinery and production equipment 3 - 15 years Computer equipment and software 3 - 10 years Office furniture and equipment 3 - 13 years Other 3 - 13 years Included in computer equipment and software are Woodward’s enterprise resource planning (“ERP”) systems, which have an estimated useful life of 10 years. All other computer equipment and software is generally depreciated over three to five years. Purchase accounting: Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method, assets and liabilities, including intangible assets, are recorded at their fair values as of the acquisition date. Acquisition costs in excess of amounts assigned to assets acquired and liabilities assumed are recorded as goodwill. Goodwill: 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. There was no impairment charge recorded in fiscal years 2015, 2014, or 2013. Other intangibles: Other intangibles are recognized apart from goodwill whenever an acquired intangible asset arises from contractual or other legal rights, or whenever it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset, or liability. All of Woodward’s intangibles have an estimated useful life and are being amortized using patterns that reflect the periods over which the economic benefits of the assets are expected to be realized. Impairment losses are recognized if the carrying amount of an intangible is both not recoverable and exceeds its fair value. Estimated lives over which intangible assets are amortized at September 30, 2015 were as follows: Customer relationships 9 - 30 years Intellectual property 10 - 17 years Process technology 8 - 30 years Other 4 - 15 years Impairment of long-lived assets: Woodward reviews the carrying amount of its long-lived assets or asset groups to be used in operations whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, the Company would assess the recoverability of an asset group by determining if the carrying amount of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying amount of the asset group is not recoverable, the Company will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset groups carrying amount and its estimated fair value. There was an impairment charge of $3,138 recorded in fiscal year 2014 related to a write down to fair value of assets held for sale. There were no impairment charges recorded in fiscal years 2015 or 2013 . Investment in marketable equity securities: Woodward holds marketable equity securities 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 associated obligation to provide benefits is included in “Other liabilities.” Investments in unconsolidated subsidiaries: Investments in and operating results of entities in which Woodward does not have a controlling financial interest or the ability to exercise significant influence over the operations are included in the financial statements using the cost method of accounting. Investments and operating results of entities in which Woodward does not have a controlling interest but does have the ability to exercise significant influence over operations are included in the financial statements using the equity method of accounting. Deferred compensation: The Company maintains a deferred compensation plan, or “rabbi trust,” as part of its overall compensation package for certain employees. Deferred compensation obligations will be settled either by delivery of a fixed number of shares of Woodward’s common stock (in accordance with certain eligible members’ irrevocable elections) or in cash. Woodward has contributed shares of its common stock into a trust established for the future settlement of deferred compensation obligations that are payable in shares of Woodward’s common stock. Common stock held by the trust is reflected in the Consolidated Balance Sheet as “Treasury stock held for deferred compensation” and the related deferred compensation obligation is reflected as a separate component of equity in amounts equal to the fair value of the common stock at the dates of contribution. These accounts are not adjusted for subsequent changes in the fair value of the common stock. Deferred compensation obligations that will be settled in cash are accounted for on an accrual basis in accordance with the terms of the underlying contract and are reflected in the Consolidated Balance Sheet as “Other liabilities.” Derivatives: The Company is exposed to various market risks that arise from transactions entered into in the normal course of business. The Company has historically utilized derivative instruments, such as treasury lock agreements to lock in fixed rates on future debt issuances, which qualify as cash flow or fair value hedges to mitigate the risk of variability in cash flows related to future interest payments attributable to changes in the designated benchmark rate. The Company records all such interest rate hedge instruments on the balance sheet at fair value. Cash flows related to the instrument designated as a qualifying hedge are reflected in the accompanying Consolidated Statements of Cash Flows in the same categories as the cash flows from the items being hedged. Accordingly, cash flows relating to the settlement of interest rate derivatives hedging the forecasted future interest payments on debt have been reflected upon settlement as a component of financing cash flows. The resulting gain or loss from such settlement is deferred to other comprehensive income and reclassified to interest expense over the term of the underlying debt. This reclassification of the deferred gains and losses impacts the interest expense recognized on the underlying debt that was hedged and is therefore reflected as a component of operating cash flows in periods subsequent to settlement. The periodic settlement of interest rate derivatives hedging outstanding variable rate debt is recorded as an adjustment to interest expense and is therefore reflected as a component of operating cash flows. From time to time, Woodward will enter into foreign currency exchange rate contracts to hedge against changes in foreign currency exchange rates on liabilities expected to be settled at a future date. Woodward has historically not designated these transactions as accounting hedges. The fair value of foreign currency exchange rate contracts held at the end of the period are recognized in the balance sheet and the unrealized gains or losses are recorded to “Other (income) expense, net” in the Consolidated Statements of Earnings. Upon settlement of foreign currency exchange rate contracts, any unrealized gains or losses previously recognized are reversed and the realized gain or loss is recorded to “Other (income) expense, net” in the Consolidated Statement of Earnings. Further information on foreign currency exchange rate contracts can be found at Note 6, Derivative instruments and hedging activities . Financial instruments: The Company’s financial instruments include cash and cash equivalents, investments in the deferred compensation program, notes receivable from municipalities, and debt. Because of their short-term maturity, the carrying amount of cash and cash equivalents and short-term debt approximate fair value. The fair value of investments in the deferred compensation program are adjusted to fair value based on the quoted market prices for the investments in the various mutual funds owned. The fair value of the long-term notes from municipalities are estimated based on a model that discounts future principal and interest payments received at interest rates available to the Company at the end of the period for similarly rated municipality notes of similar maturity. The fair value of long-term debt is estimated based on a model that discounts future principal and interest payments at interest rates available to the Company at the end of the period for similar debt with the same maturity. Further information on the fair value of financial instruments can be found at Note 5, Financial instruments and fair value measurements . Financial assets and liabilities recorded at fair value in the 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. Postretirement benefits: The Company provides various benefits to certain current and former employees through defined benefit pension and postretirement plans. For financial reporting purposes, net periodic benefits expense and related obligations are calculated using a number of significant actuarial assumptions. Changes in net periodic expense and funding status may occur in the future due to changes in these assumptions. The funded status of defined pension and postretirement plans recognized in the statement of financial position is measured as the difference between the fair market value of the plan assets and the benefit obligation. For a defined benefit pension plan, the benefit obligation is the projected benefit obligation; for any ot her defined benefit postretirement plan, such as a retiree health care plan, the benefit obligation is the accumulated benefit obligation. Any over-fun ded status is recognized as an asset and any underfunded status is recognized as a liability. Projected benefit obligation is the actuarial present value as of the measurement date of all benefits attributed by the plan benefit formula to employee service rendered before the measurement date using assumptions as to future compensation levels if the plan benefit formula is based on those future compensation levels. Accumulated benefit obligation is the actuarial present value of benefits (whether vested or unvested) attributed by the plan benefit formula to employee service rendered before the measurement date and based on employee service and compensation, if applicable, prior to that date. Accumulated benefit obligation differs from projected benefit obligation in that it includes no assumption about future compensation levels. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Sep. 30, 2015 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 2. New accounting standards 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”). During fiscal year 2015, the Securities and Exchange Commission (“SEC”) staff expressed its acceptance for companies applying an alternative accounting approach for determining the service cost and interest cost components of net periodic benefit cost for postretirement benefit plan obligations. Specifically, the SEC staff stated that it would not object to companies’ use of an alternative approach that focuses on measuring the service cost and interest cost components of net periodic benefit cost by using individual spot rates derived from a high-quality corporate bond yield curve and matched with separate cash flows for each future year instead of a single weighted-average discount rate approach. Further the SEC staff stated it would not object to companies treating the change in approach as a change in estimate. Woodward elected to change its estimate of service cost and interest cost to determine periodic benefit costs effective for fiscal year 2016. In coordination with adoption of the SEC supported alternative approach, Woodward’s method of determining the discount rate for its United States benefit and other postretirement benefit plans was changed from a bond matching approach to a yield curve approach, which produces a reasonable approximation of the discount rate developed using the bond matching approach. This change in estimate had no impact on the service cost and interest cost components of net periodic benefit cost in fiscal years 2015, 2014 or 2013. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory.” ASU 2015-11 applies a simplified method to value inventory at the lower of cost or net realizable value rather than at the lower of cost or market. ASU 2015-11, which Woodward applied effective as of July 1, 2015, had no impact on its Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” Under ASU 2015-03 Woodward will present debt issuance costs in the balance sheet as a reduction from the related debt liability rather than as an asset. Amortization of such costs will continue to be reported as interest expense. ASU 2015-03 is effective for fiscal years − and interim periods within those fiscal years − beginning after December 15, 2015 (fiscal year 2017 for Woodward), but early adoption is allowed. In August 2015, the FASB issued ASU 2015-15, “ Presentation and Subsequent Measurement of Debt Issuance Costs Associated wi th Line-of-Credit Arrangements.” ASU 2015-15 supplements the requirements of ASU 2015-03 by allowing an entity to defer and present debt issuance costs related to a line of credit arrangement as an asset and subsequently amortize the deferred costs ratably over the term of the line of credit arrangement. Woodward has not determined in which period it will adopt the new guidance. Retrospective adoption is required. Woodward had unamortized debt issuance costs of $5,521 as of September 30, 2015 and $4,276 as of September 30 , 2014. Long-term debt issuance costs will be reclassified from other assets to long-term debt upon adoption. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The purpose of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The amendments (i) remove inconsistencies and weaknesses in revenue requirements, (ii) provide a more robust framework for addressing revenue issues, (iii) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (iv) provide more useful information to users of financial statements through improved disclosure requirements, and (v) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. In July 2015, the FASB delayed the effective date for the adoption of ASU 2014-09 by one year, and as a result, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 (fiscal year 2019 for Woodward), including interim periods within the reporting period. Early adoption is not permitted. An entity should adopt the amendments using one of the following methods: retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. Woodward has not determined what transition method it will use and is currently assessing the impact that this guidance may have on its Consolidated Financial Statements. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2015 | |
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 and restricted stock. The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share: Year Ended September 30, 2015 2014 2013 Numerator: Net earnings $ $ $ Denominator: Basic shares outstanding Dilutive effect of stock options and restricted stock Diluted shares outstanding Income per common share: Basic earnings per share $ $ $ Diluted earnings per share $ $ $ On June 2, 2015 , Woodward entered into an accelerated share repurchase agreement (the “ASR Agreement”) with Goldman, Sachs & Co. (“Goldman”) under which Woodward repurchased shares of its common stock for an aggregate purchase price of $125,000 . Upon execution of the ASR Agreement, Goldman initially delivered to Woodward 2,048 shares of common stock. Goldman completed the ASR Agreement on September 3, 2015 and delivered 458 additional shares to Woodward. The final number of shares delivered to Woodward was based generally on the average daily volume-weighted average price of Woodward stock during the term of the ASR Agreement of $49.89 . The 2,506 shares of common stock delivered by Goldman to Woodward related to the ASR Agreement are reflected in the calculation of basic shares outstanding used in the calculation of earnings per share. The following stock option grants were outstanding during the fiscal years ended September 30, 2015 , 2014 and 201 3 , but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive: Year Ended September 30, 2015 2014 2013 Options Weighted-average option price $ $ $ 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: Year Ended September 30, 2015 2014 2013 Weighted-average treasury stock shares held for deferred compensation obligations |
Joint Venture and Business Acqu
Joint Venture and Business Acquisitions | 12 Months Ended |
Sep. 30, 2015 | |
Business Combinations | |
Joint Venture and Business Acquisitions Disclosures [Text Block] | Note 4. Joint venture s and business acquisitions Joint venture On May 20, 2015 , Woodward and General Electric Company (“GE”), acting through its GE Aviation business unit, entered into a binding agreement to form a strategic joint venture between Woodward and GE (the “JV”). The JV will design, develop, source, supply and service the fuel system (including components from the fuel inlet up to the fuel nozzle) for specified existing and all future GE commercial aircraft engines that produce thrust in excess of fifty thousand pounds. Upon formation of the JV, Woodward will assign certain contractual rights to the JV in exchange for a payment from GE of $250,000 . In addition, GE will pay Woodward fifteen annual payments of approximately $4,900 each per year. Because the contractual rights have no cost basis in Woodward’s financial records, Woodward expects to account for the fair value of the proceeds received as a deferred gain that will be recognized over the economic lives of the assigned contractual rights. During the fourth quarter of fiscal year 2015, all required regulatory approvals were obtained from various global jurisdictions. Closing of the JV transaction and concurrent formation of the JV is expected to occur early in the second quarter of fiscal year 2016. Woodward will own 50% of the JV, which will be jointly managed by Woodward and GE, and any significant decisions and/or actions of the JV will require mutual consent of both Woodward and GE. Woodward expects to account for the JV using the equity method, as neither Woodward nor GE will exercise operating control over the JV. Business acquisition Woodward has recorded the acquisition described below using the acquisition method of accounting and, accordingly, has included the results of operations of the acquired business in its consolidated results as of the date of acquisition. In accordance with authoritative accounting guidance for business combinations, the purchase price for the acquisition is allocated to the tangible assets, liabilities, and intangible assets acquired based on their estimated fair values. The excess purchase price over the respective fair values of assets is recorded as goodwill. Goodwill is not amortized under U.S. GAAP but is tested for impairment at least annually (See Note 10, Goodwill ). 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 is as follows: Cash paid to Seller $ Less cash acquired Total purchase price $ The allocation of the purchase price to the assets acquired and liabilities assumed was accounted for under the acquisition 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 $1,944 during the fiscal year ended September 30, 2013, which are included in “Selling, general and administrative expenses” in the Consolidated Statements of Earnings. No additional transaction costs were incurred in the fiscal years ended September 30, 2015 and September 30, 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 were not 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 $ Inventories Other current assets Property, plant, and equipment Goodwill Intangible assets Other noncurrent assets Total assets acquired Other current liabilities Other noncurrent liabilities Total liabilities assumed Net assets acquired $ 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 $ years Straight-line Process technology years Straight-line Backlog years Accelerated Total $ 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 $145,998 for the fiscal year ended September 30, 2014 and $111,261 for the fiscal year ended September 30, 2013. Net sales for the Duarte Business subsequent to the date it was acquired by Woodward for the fiscal year ended September 30, 2015 and earnings of the Duarte Business subsequent to the date it was acquired by Woodward for the fiscal years ended September 30, 2015 and September 30, 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 fiscal year ended September 30, 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 Consolidated Statements of Earnings for the three-months ended December 31, 2012. F iscal years 2015 and 2014 include a full year of Duarte Business operating results. 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 fiscal year ended September 30, 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 fiscal year ended September 30, 2013, compared to the actual results reported in these Consolidated Financial Statements, follow: Year Ended September 30, 2013 As reported Pro forma Net sales $ $ Net earnings Earnings per share: Basic earnings per share $ $ Diluted earnings per share |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Sep. 30, 2015 | |
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 Consolidated Balance Sheets are categorized based upon a fair value hie rarchy established by U.S. GAAP. 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 September 30, 2015 or September 30, 2014. At September 30, 2015 At September 30, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Cash $ $ - $ - $ $ $ - $ - $ Investments in money market funds - - - - Investments in reverse repurchase agreements - - - - Equity securities - - - - Total financial assets $ $ - $ - $ $ $ - $ - $ Investments in money market funds: Woodward sometimes invests excess cash in money market funds not insured by the 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. Accounts receivable, accounts payable and short-term debt are not remeasured to fair value, as the carrying cost of each approximates its respective fair value. The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the C onsolidated Balance Sheets were as follows: At September 30, 2015 At September 30, 2014 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 Liabilities: Short-term borrowings 2 - - Long-term debt, including current portion 2 In fiscal years 2014 and 2013, 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 segment. 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 3.0 % at September 30, 2015 and 3.2% at September 30, 2014. 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 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 note were 3.0% at September 30, 2015 and 3.2% at September 30, 2014. The fair value 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 2.8 % at September 30, 2015 and 2.4 % at September 30, 2014. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Sep. 30, 2015 | |
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. Other than the cash flow hedges discussed below, Woodward did not enter into any derivatives or hedging transactions during the fiscal years ended September 30, 201 5, September 30, 2014 and September 30, 2013 . Derivatives in cash flow hedging relationships In June 2013, in connection with Woodward’s expected refinancing of current maturities on its existing long-term debt, Woodward entered into a treasury lock agreement with a notional amount of $25,000 that qualified as a cash flow hedge under ASC Topic 815, “Derivatives and Hedging.” The objective of this derivative instrument was to hedge the risk of variability in cash flows attributable to changes in the designated benchmark interest rate over a seven-year period related to the future interest payments on a portion of anticipated future debt issuances. The treasury lock agreement was settled in August 2013 and the resulting gain of $507 is being recognized as a reduction of interest expense over a seven -year period. The unrecognized portion of the gain is recorded in accumulated other comprehensive earnings, net of tax. In September 2008, the Company entered into treasury lock agreements that qualified as cash flow hedges under authoritative guidance for derivatives and hedging. The objective of this derivative instrument was to hedge the risk of variability in cash flows related to future interest payments of a portion of the anticipated future debt issuances attributable to changes in the designated benchmark interest rate associated with the expected issuance of long-term debt to acquire Techni-Core, Inc. (“Techni-Core”) and MPC Products Corporation (“MPC Products” and, together with Techni-Core, “MPC”). The discontinuance of these treasury lock agreements resulted in a gain that is being recognized as a reduction of interest expense over a seven-year period on the hedged Series C and D Notes, which were issued on October 1, 2008, using the effective interest method. The unrecognized portion of the gain is recorded in accumulated other comprehensive earnings, net of tax. In March 2009, Woodward entered into LIBOR lock agreements that qualified as cash flow hedges under authoritative guidance for derivatives and hedging. The objective of this derivative instrument was to hedge the risk of variability in cash flows over a seven-year period related to future interest payments of a portion of anticipated future debt issuances attributable to changes in the designated benchmark interest rate associated with the then expected issuance of long-term debt to acquire HR Textron Inc. (“HRT”). The discontinuance of the LIBOR lock agreements resulted in a loss that is being recognized as an increase of interest expense over a seven-year period on the hedged Series E and F Notes, which were issued on April 3, 2009, using the effective interest method. The unrecognized portion of the loss is recorded in accumulated other comprehensive earnings, net of tax. 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 $269 as of September 30, 2015 and $ 170 as of September 30, 2014. The following table discloses the impact of derivative instruments in cash flow hedging relat ionships on Woodward’s Consolidated Statements of Earnings, recognized in interest expense: Year Ended September 30, 2015 2014 2013 Amount of (income) expense recognized in earnings on derivative $ $ $ Amount of (gain) loss recognized in accumulated OCI on derivative - - Amount of (gain) loss reclassified from accumulated OCI into earnings Based on the carrying value of the realized but unrecognized gains and losses on terminated derivative instruments designated as cash flow hedges as of September 30, 2015, Woodward expects to reclassify $ 21 of net unrecognized losses on terminated derivative instruments from accumulated other comprehensive earnings to earnings during the next twelve months. In June 2015, Woodward designated an intercompany loan of 160,000 RMB between two wholly owned subsidiaries as a hedge of a foreign currency exposure of the net investment of the borrower in the lender. An unrealized foreign exchange gain on the loan of $572 is included in foreign currency translation adjustments within total comprehensive earnings for the fiscal year ended September 30, 2015. |
Supplemental Statements of Cash
Supplemental Statements of Cash Flows Information | 12 Months Ended |
Sep. 30, 2015 | |
Supplemental Statements of Cash Flows Information | |
Supplemental Statements of Cash Flows Information | Note 7. Supplemental statement of cash flows information Year Ended September 30, 2015 2014 2013 Interest paid, net of amounts capitalized $ $ $ Income taxes paid Income tax refunds received Non-cash activities: Purchases of property, plant and equipment on account Common shares issued from treasury to settle benefit plan obligations (Note 18) Notes receivable from municipalities for economic development incentives - Cashless exercise of stock options Settlement of receivable through cashless acquisition of treasury shares in connection with the cashless exercise of stock options |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2015 | |
Inventories | |
Inventories | Note 8 . Inventories September 30, September 30, 2015 2014 Raw materials $ $ Work in progress Component parts (1) Finished goods $ $ (1) Component parts include items that can be sold separately as finished goods or included in the manufacture of other products. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 12 Months Ended |
Sep. 30, 2015 | |
Property, Plant, and Equipment, Net | |
Property, Plant and Equipment, Net | Note 9 . Property, plant, and equipment September 30, September 30, 2015 2014 Land and land improvements $ $ Buildings and improvements Leasehold improvements Machinery and production equipment Computer equipment and software Office furniture and equipment Other Construction in progress Less accumulated depreciation Property, plant and equipment, net $ $ I ncluded in “Land and land improvements” and “Buildings and improvements” are assets held for sale of $681 at September 30, 2015 and $2,465 at September 30, 2014 related to Woodward’s Energy segment . During the quarter ended September 30, 2014, Woodward recorded an impairment charge of $3,138 , which is included in cost of goods sold in the Consolidated Statement of Earnings, related to the write down to fair value of certain held for sale assets. During the quarter ended March 31, 2015, Woodward completed the sale of certain of the assets held for sale. Woodward completed construction of a manufacturing and office building on a second campus in the greater-Rockford, Illinois area and has begun occupying the new facility for its Aerospace segment . This campus is intended to support expected growth over the next ten years and beyond stimulated by Woodward being awarded a substantial number of new system platforms, particularly on narrow-body aircraft. Approximately $ 120,000 of assets were placed in service during the fiscal year ended September 30, 2015, and were recorded to “Buildings and improvements.” Included in “Construction in progress” are costs of $47,629 at September 30, 2015 and $85,283 at September 30, 2014, associated with the construction of the second campus and new equipment purchases, including capitalized interest of $499 at September 30, 2015 and $2,963 at September 30, 2014. In addition, in fiscal year 2015, Woodward completed an addition to and renovation of a building in Niles, Illinois that it had acquired in September 2013 for its Aerospace segment . Most of the operations that formerly resided in nearby Skokie, Illinois, were relocated to this new facility in fiscal year 2015. Approximately $77,00 0 of assets were placed in service during the fiscal year ended September 30, 2015, and were recorded to “Buildings and improvements” and “Office furniture and equipment.” Included in “Construction in progress” are $0 at September 30, 2015 and $55,629 at September 30, 2014, associated with the construction of the building in Niles and new equipment purchases. Woodward is also developing a new campus at its corporate headquarters in Fort Collins, Colorado to support the continued growth of its Energy segment by supplementing its existing Colorado manufacturing facilities and corporate headquarters. Included in “Construction in progress” are $151,669 at September 30, 2015 and $37,268 at September 30, 2014, associated with the construction of the new campus, including capitalized interest of $5,205 at September 30, 2015 and $2,392 at September 30, 2014. For the fiscal years ended September 30, 2015 , 2014 and 2013 , Woodward had depreciation expense of the following: Year Ended September 30, 2015 2014 2013 Depreciation expense $ $ $ For the fiscal years ended September 30, 2015 , 2014 and 2013 , Woodward capitalized interest that would have otherwise been included in interest expense of the following: Year Ended September 30, 2015 2014 2013 Capitalized interest $ $ $ |
Goodwill
Goodwill | 12 Months Ended |
Sep. 30, 2015 | |
Goodwill Disclosure | |
Goodwill | Note 10 . Goodwill September 30, 2014 Effects of Foreign Currency Translation September 30, 2015 Aerospace $ $ - $ Energy Consolidated $ $ $ September 30, 2013 Effects of Foreign Currency Translation September 30, 2014 Aerospace $ $ $ Energy Consolidated $ $ $ 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. Woodward completed its annual goodwill imp airment test as of July 31, 2015 during the quarter ended September 30, 2015 . At that date, Woodward determined it was appropriate to aggregate certain components of the same operating segment into a single 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, future tax rates, and the present value, based on an estimated weighted-average cost of capital (or 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 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, 2015 impairment test were discounted using weighted-average cost of capital assumptions ranging from 9.49% to 12.83% . The terminal values of the forecasted cash flows were calculated using the Gordon Growth Model and assumed an annual compound growth rate after ten years of 4.03% . 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 units’ resulting fair values utilizing a market multiple method. The results of Woodward’s goodwill impairment tests performed as of July 31, 2 015 did not indicate impairment of any of Woodward’s repo rting unit s . |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Sep. 30, 2015 | |
Intangible Assets, Net | |
Intangible Assets, Net | Note 11 . Intangible assets, net September 30, 2015 September 30, 2014 Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Customer relationships and contracts: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Intellectual property: Aerospace $ - $ - $ - $ - $ - $ - Energy Total $ $ $ $ $ $ Process technology: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Other intangibles: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Total intangibles: Aerospace $ $ $ $ $ $ Energy Consolidated Total $ $ $ $ $ $ For the fiscal years ended September 30, 2015 , September 30, 2014, and September 30, 2013 Woodward recorded amortization expense associated with intangibles of the following: Year Ended September 30, 2015 2014 2013 Amortization expense $ $ $ Future amortization expense associated with intangibles is expected to be: Year Ending September 30: 2016 $ 2017 2018 2019 2020 Thereafter $ |
Credit Facilities, Short-term B
Credit Facilities, Short-term Borrowings and Long-term Debt | 12 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure | |
Credit Facilities, Short-term Borrowings and Long-term Debt | Note 12. Credit facilities, short-term borrowings and long-term debt As of September 30, 2015, Woodward’s short-term borrowings and availability under its various short-term credit facilities follows: Total availability Outstanding letters of credit and guarantees Outstanding borrowings Remaining availability Revolving credit facility $ $ $ $ Foreign lines of credit and overdraft facilities - Foreign performance guarantee facilities - $ $ $ $ Revolving credit facility Woodward maintains a 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”). On April 28, 2015 , Woodward amended the Revolving Credit Agreement to increase its borrowing capacity from $600,000 to $1,000,000 (the “Amended Revolving Credit Agreement”). The terms and conditions of the Amended Revolving Credit Agreement are similar to the prior credit agreement. The Amended Revolving Credit Agreement matures in April 2020 . The Amended Revolving Credit Agreement provides for the option to increase available borrowings to up to $1,200,000 , subject to lenders’ participation. Borrowings under the Amended Revolving Credit Agreement generally bear interest at LIBOR plus 0.85% to 1.65% . Under the Amended Revolving Credit Agreement, there were $350,000 in principal amount of borrowings outstanding as of September 30, 2015, at an effective interest rate of 1.44% . Under the prior Revolving Credit Agreement, there were $210,000 in principal amount of borrowings outstanding as of September 30, 2014, at an effective interest rate of 1.21% . As of September 30, 2015 and September 30, 2014, the entire outstanding balance on both the Amended Revolving Credit Agreement and the prior Revolving Credit Agreement was classified as long-term debt. The Amended 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 Amended 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 of 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 following two succeeding fiscal quarters, and (ii) a minimum consolidated net worth of $800,000 plus (a) 50% of Woodward’s positive net income for the prior fiscal year and (b) 50% of Woodward’s net cash proceeds resulting from certain issuances of stock, subject to certain adjustments. Woodward’s obligations under the Amended 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. Short-term borrowings A Chinese subsidiary of Woodward has a local uncommitted 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 15% 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 local credit facility expires in September 2016 . The Chinese subsidiary had no outstanding cash borrowings against the local credit facility at September 30, 2015 and September 30, 2014. In fiscal year 2015, a Brazilian subsidiary of Woodward arranged a local uncommitted credit facility with the Banco J.P. Morgan S.A. under which it has the ability to borrow up to 52,000 Brazilian Real. Any cash borrowings under the local Brazilian credit facility will be secured by a parent guarantee from Woodward. The Brazilian subsidiary may utilize the local facility to support its operating cash needs. Local currency borrowings on the Brazilian credit facility are charged interest at the lender’s cost of borrowing rate at the date of borrowing, plus 1.75% . The local credit facility expires in January 2016 . The Brazilian subsidiary had $2,430 outstanding cash borrowings against the local credit facility at September 30, 2015. 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 September 30, 2015 and September 30, 2014 on Woodward’s other foreign lines of credit and foreign overdraft facilities. Long-term debt September 30, September 30, 2015 2014 Revolving credit facility - Floating rate (LIBOR plus 0.85% - 1.65%), due April 2020 , unsecured Series C notes – 5.92%, due October 2015; unsecured Series D notes – 6.39%, due October 2018; unsecured Series E notes – 7.81%, due April 2016; unsecured Series F notes – 8.24%, due April 2019; unsecured Series G notes – 3.42%, due November 2020; unsecured Series H notes – 4.03%, due November 2023; unsecured Series I notes – 4.18%, due November 2025; unsecured Series J notes – Floating rate (LIBOR plus 1.25%), due November 2020; unsecured Series K notes – 4.03%, due November 2023; unsecured Series L notes – 4.18%, due November 2025; unsecured Total long-term debt $ $ The Notes 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 . 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. 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 September 30, 2015, the Series J Notes bore interest at an effective rate of 1.58% . Principal payment of the Series C Notes is due on October 1, 2015 and on the Series E notes on April 1, 2016. These payments are classified as long-term based on Woodward’s intent and ability to refinance this debt for a longer term through payment of the principal amount with its existing revolving line of credit, which does not mature until July 2020. 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, conformed 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, 2014. 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. Required future principal payments of the Notes as of September 30, 201 5 are as follows: Year Ending September 30: 2016 $ 2017 - 2018 - 2019 2020 - Thereafter $ Certain financial and other covenants under Woodward's debt agreements contain customary restrictions on the operation of its business. In the event of non-compliance with these covenants, certain additional restrictions might apply, including restrictions on the Company's ability to pay dividends or make distributions on its capital stock. Management believes that Woodward was in compliance with the covenants under the long-term debt agreements at September 30, 2015. Debt Issuance Costs In connection with the Amended Revolving Credit Agreement, in fiscal year 2015, Woodward incurred $2,359 in financial costs, which are deferred and are being amortized using the straight-line method over the life of the agreement. As of April 28, 2015, Woodward also had $2,014 remaining of deferred financing costs incurred in connection with the Revolving Credit Agreement, which have been combined with the financing costs associated with the Amended Revolving Credit Agreement and are being amortized using the straight-line method over the lift of the Amended Revolving Credit Agreement. In connection with the 2013 Note Purchase Agreement, in fiscal year 2014, Woodward incurred $1,297 in financing costs, which are deferred and will be amortized using the straight-line method over the life of the agreement. Amounts recognized as interest expense from the amortization of debt issuance costs were $1,114 in fiscal year 201 5 , $1,014 in fiscal year 201 4 , and $1,045 in fiscal year 201 3 . Woodward had $5,521 of unamortized debt issuance costs as of September 30, 201 5 and $4,276 of unamortized debt issuance costs as of September 30, 201 4 . Amortization of debt issuance costs is included in operating activities in the Consolidated Statements of Cash Flows. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Sep. 30, 2015 | |
Accrued Liabilities | |
Accrued Liabilities | Note 13 . Accrued liabilities At September 30, 2015 2014 Salaries and other member benefits $ $ Warranties Interest payable Current portion of acquired performance obligations and unfavorable contracts (1) Accrued retirement benefits Deferred revenues Taxes, other than income Other $ $ (1) For more information about acquired performance obligations and unfavorable contracts, see Note 4, Joint ventures and business acquisitions , under the section Business acquisition . 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: At September 30, 2015 2014 2013 Warranties, beginning of period $ $ $ Expense Increases due to acquisition of Duarte Business - - Reductions for settling warranties Foreign currency exchange rate changes Warranties, end of period $ $ $ |
Other Liabilities
Other Liabilities | 12 Months Ended |
Sep. 30, 2015 | |
Other Liabilities | |
Other Liabilities | Note 14 . Other liabilities At September 30, 2015 2014 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ $ Total unrecognized tax benefits, net of offsetting adjustments Acquired performance obligations and unfavorable contracts (1) Deferred economic incentives (2) Other $ $ (1) For more information about acquired performance obligations and unfavorable contracts, see Note 4, Joint ventures and business acquisitions , under the section Business acquisition . The long-term portion of both obligations is included in “Other liabilities” as of September 30, 2014. As of September 30, 2015, “Other liabilities” includes the long-term portion of the acquired unfavorable contracts as only a current portion of the acquired performance obligations remains. (2) Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and will be recognized as a reduction to non-income tax expense over the economic lives of the related capital expansion projects. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 12 Months Ended |
Sep. 30, 2015 | |
Other (Income) Expense, Net | |
Other (Income) Expense, Net | Note 1 5 . Other (income) expense, net Year Ended September 30, 2015 2014 2013 Net (gain) loss on sale of assets $ $ $ Rent income Net (gain) loss on investments in deferred compensation program Other $ $ $ |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2015 | |
Income Taxes | |
Income Taxes | Note 16 . Income taxes Income taxes consisted of the following: Year Ended September 30, 2015 2014 2013 Current: Federal $ $ $ State Foreign Deferred: Federal State Foreign $ $ $ Earnings before income taxes by geographical area consisted of the following: Year Ended September 30, 2015 2014 2013 United States $ $ $ Other countries $ $ $ Significant components of deferred income taxes presented in the Consolidated Balance Sheets are related to the following: At September 30, 2015 2014 Deferred tax assets: Defined benefit plans, Other postretirement $ $ Foreign net operating loss carryforwards Inventory Deferred and stock-based compensation Defined benefit plans, Pension Other reserves Tax credits and incentives Other Valuation allowance Total deferred tax assets, net of valuation allowance Deferred tax liabilities: Goodwill and intangibles - net Property, plant and equipment Other Total deferred tax liabilities Net deferred tax liabilities $ $ Woodward has recorded a net operating loss (“NOL”) deferred tax asset of $6,537 as of September 30, 2015 and $5,552 as of September 30, 2014. A portion of these carryforwards will start to expire in 2018 and are currently offset by a valuation allowance, while the remaining portion has an indefinite carryforward period and has no valuation allowance against it. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Both positive and negative evidence are considered in forming Woodward’s judgment as to whether a valuation allowance is appropriate, and more weight is given to evidence that can be objectively verified. Valuation allowances are reassessed whenever there are changes in circumstances that may cause a change in judgment. The change in the valuation allowance was primarily the result of current year earnings in a wholly owned subsidiary that had net operating losses subject to a full valuation allowance, and a change in judgment about the utilization of tax credits in various jurisdictions. At September 30, 2015, Woodward has not provided for taxes on undistributed foreign earnings of $318,744 that it considered indefinitely reinvested. These earnings could become subject to income taxes if they are remitted as dividends, are loaned to Woodward or any of Woodward’s subsidiaries located in the United States, or if Woodward sells its stock in the foreign subsidiaries. Any additional U.S. taxes could be offset, in part or in whole, by foreign tax credits. The amount of such taxes and application of tax credits would be dependent on the income tax laws and other circumstances at the time these amounts are repatriated. Based on these variables, it is impractical to determine the income tax liability that might be incurred if these funds were to be repatriated. The following is a reconciliation of the U.S. Federal statutory tax rate of 35 percent to Woodward’s effective income tax rate: Year Ending September 30, Percent of pretax earnings 2015 2014 2013 Statutory tax rate % % % State income taxes, net of federal tax benefit Taxes on international activities Research credit Retroactive extension of research credit - Domestic production activities deduction Adjustments of prior period tax items Other items, net - Effective tax rate % % % In determining the tax amounts in Woodward’s financial statements, estimates are sometimes used that are subsequently adjusted in the actual filing of tax returns or by updated calculations. In addition, Woodward occasionally has resolutions of tax items with tax authorities related to prior years due to the conclusion of audits and the lapse of applicable statutes of limitations. Such adjustments are included in the “Adjustments of prior period tax items” line in the above table. The majority of the fiscal year 2015 adjustments are related to the conclusion of audits, effective settlement, and lapse of applicable statutes of limitations in various tax jurisdictions. 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 year ended September 30 , 2013 included a net expense reduction related to the retroactive impact from the last three quarters of fiscal year 2012 of the U.S. research and experimentation tax credit pursuant to the Taxpayer Relief Act. On December 19, 2014, the Tax Increase Prevention Act of 2014 was enacted, which retroactively extended the U.S. research and experimentation tax credit through December 31, 2014. As a result, income taxes for the year ended September 30 , 2015 included a net expense reduction related to the retroactive impact from the last three quarters of fiscal year 2014 of the U.S. research and experimentation tax credit pursuant to the Tax Increase Prevention Act. A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows: Year Ending September 30, 2015 2014 2013 Beginning balance $ $ $ Additions to current year tax positions Reductions to prior year tax positions - Additions to prior year tax positions Lapse of applicable statute of limitations Ending balance $ $ $ Included in the balance of unrecognized tax benefits were $10,494 as of September 30, 2015 and $12,807 as of September 30, 2014, 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 $4,393 in the next twelve months due to a number of factors including 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 gross interest and penalties of $859 as of September 30, 2015 and $1,158 as of September 30, 2014. Woodward’s tax returns are subject to audits by U.S. federal, state, and foreign tax authorities, and these audits are at various stages of completion at any given time. Reviews of tax matters by authorities and lapses of the applicable statutes of limitations may result in changes to tax expense. With a few exceptions, fiscal years remaining open to examination in significant foreign jurisdictions include 2008 and forward. Woodward has concluded U.S. federal income tax examinations through fiscal year 2012. Woodward is generally subject to U.S. state income tax examinations for fiscal years 2012 and forward. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Sep. 30, 2015 | |
Retirement Benefits - General | |
Retirement Benefits | Note 17. 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 2015 , 2014 and 201 3 , Woodward fulfilled its annual Woodward stock contribution obligation using shares held in treasury stock by issuing 259 shares of common stock for a total value of $12,574 in fiscal year 2015, 260 shares of common stock for a total value of $11,193 in fiscal year 2014 , and 250 shares of common stock for a total value of $9,780 in fiscal year 2013. The Woodward Retirement Savings Plan (the “WRS Plan”) held 4,887 shares of Woodward stock as of September 30, 2015 and 5,176 shares as of September 30, 2014. The shares held in the WRS Plan participant in dividends and are considered issued and outstanding for purposes of calculating basic and diluted earnings per share. Accrued liabilities included obligations to contribute shares of Woodward common stock to the WRS Plan of $11,342 as of September 30, 2015 and $9,297 as of September 30, 2014. The amount of expense associated with defined contribution plans was as follows: Year Ended September 30, 2015 2014 2013 Company costs $ $ $ Defined benefit plans Woodward has defined benefit plans that provide pension benefits for certain retired employees in the United States, the United Kingdom, and Japan. During the fourth quarter of fiscal year 2014, a defined benefit pension plan for certain employees in California was amended. The amendment froze the benefits of certain members and resulted in a curtailment gain in the U.S, see additional discussion below. During the third quarter of fiscal year 2014, Woodward terminated it defined benefit pension plan in Switzerland due to workforce reductions related to the closure of Woodward’s Swiss facility in connection with the realignment of the renewable power business that occurred in the third quarter of fiscal year 2013. 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. In connection with the acquisition of the Duarte Business (see Note 4, Joint venture and business acquisitions ), Woodward did not assume the Seller’s postretirement benefit obligations under the Duarte Business’ defined benefit pension plan as they existed at the time of closing of the transaction. Under the terms of the Asset Purchase Agreement, Woodward established a new defined benefit pension plan for the Duarte Business employees who were beneficiaries of the Seller’s defined benefit pension plan (the “Duarte Pension Plan”). Subsequently, Woodward and the Duarte Union agreed that, effective as of the close of business on July 31, 2013, the Duarte Pension Plan was amended to cease all future benefit accruals to current participants in the plan. In addition, the Duarte Pension Plan was frozen to new entrants as of July 31, 2013. Effective June 30, 2015, the Company froze and terminated the defined benefit pension plan for employees at its Duarte, California manufacturing facility. Cash payout of benefits will occur after regulatory approval of the plan termination. In exchange for the freeze and termination of the plan, which were agreed upon through negotiations with the applicable employee union, the employees were provided replacement benefits through full participation in the Woodward U.S. defined contribution plan. Woodward does not expect future cash payouts to the beneficiaries of the terminated plan to be significantly different from the approximately $95 liability reflected in Woodward’s statement of financial position as of September 30, 2015. In addition to the Duarte Pension Plan, excluding the Woodward HRT Plan, the defined benefit plans in the United States were frozen in fiscal year 2007 and no additional employees may participate in the U.S. plans and no additional service costs will be incurred. Pension plans The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of retirement pension benefits were as follows: 2015 2014 2013 United States: Weighted-average assumptions to determine benefit obligation at September 30: Discount rate % % % Rate of compensation increase n/a Weighted-average assumptions to determine periodic benefit costs for years ended September 30: Discount rate Rate of compensation increase n/a Long-term rate of return on plan assets United Kingdom: Weighted-average assumptions to determine benefit obligation at September 30: Discount rate % % % Rate of compensation increase Weighted-average assumptions to determine periodic benefit costs for years ended September 30: Discount rate Rate of compensation increase Long-term rate of return on plan assets Japan: Weighted-average assumptions to determine benefit obligation at September 30: Discount rate % % % Rate of compensation increase Weighted-average assumptions to determine periodic benefit costs for years ended September 30: Discount rate Rate of compensation increase Long-term rate of return on plan assets Switzerland: Weighted-average assumptions to determine benefit obligation at September 30: Discount rate n/a n/a % Rate of compensation increase n/a n/a Weighted-average assumptions to determine periodic benefit costs for years ended September 30: Discount rate n/a Rate of compensation increase n/a Long-term rate of return on plan assets n/a The discount rate assumption is intended to reflect the rate at which the retirement benefits could be effectively settled based upon the assumed timing of the benefit payments. In the United States, prior to fiscal year 2015, Woodward used a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstandin g t o determine the benefit obligations at year end. The discount rate used to determine periodic benefit costs for the years ended September 30, 2015 and prior were consistent with the discount rate used to determine the benefit obligation as of the prior fiscal year end. As of September 30, 2015, the discount rate used to determine the benefit obligation at year end was based on a high-quality corporate bond yield curve matched with projected separate cash flows to settle the entire benefit obligations . The discount rate used to determine periodic service cost and interest costs of the overall benefit costs for the year ending September 30, 2016 will be based on spot rates derived from the same high-quality corporate bond yield curve used to determine the September 30, 2015 benefit obligation matched with separate cash flows for each future year. In the United Kingdom and Japan, Woodward continues to use a high-quality corporate bond yield curve matched with separate cash flows to develop a single rate to determine the single rate equivalent to settle the entire benefit obligations in each jurisdiction . The discount rate used to determine periodic service cost and interest costs of the overall benefit costs for the year ending September 30, 2016 will be based on spot rates derived from the same high-quality corporate bond yield curve used to determine the September 30, 2015 benefit obligation matched with separate cash flows for each future year. In Switzerland, Woodward used high quality swap rates plus a credit spread of 0.20% in fiscal year 2013 as high quality swaps are available in Switzerland at various durations and trade at higher volumes than bonds. Woodward’s assumed rate in Switzerland did not differ significantly from this benchmark. As of September 30, 2014 Woodward no longer sponsors a defined benefit plan is Switzerland. Compensation increase assumptions, where applicable, are based upon historical experience and anticipated future management actions. In determining the long-term rate of return on plan assets, Woodward assumes that the historical long-term compound growth rates of equity and fixed-income securities will predict the future returns of similar investments in the plan portfolio. Investment management and other fees paid out of the plan assets are factored into the determination of asset return assumptions. Mortality assumptions are based on published mortality studies developed primarily based on past experience of the broad population and modified for projected longevity trends. The projected benefit obligations in the United States as of September 30, 2015 was based on the Society of Actuaries (“SOA”) RP-2014 Mortality Tables Report projected back to 2007 using the SOA’s Mortality Improvement Scale MP-2014 (“MP-2014”) and projected forward using a custom projection scale based on MP-2014 with a 10-year convergence period and a long-term rate of 0 .75%. As of September 30, 2014, mortality assumptions in the United States were based on the Pension Protection Act (“ PPA ”) Static 2014 tables. As of September 30, 2015 and September 30, 2014, mortality assumptions in Japan were based on the Standard rates 2014 and Standard rates 2009, respectively. As of September 30, 2015 and September 30, 2014, mortality assumptions for the United Kingdom pension scheme were based on the Self-administered pension scheme (“ SAPS ”) S2 “all” tables with a projected 1.5% annual improvement rate. Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statements of Earnings: Year Ended September 30, United States Other Countries Total 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ $ $ $ $ $ $ $ $ Interest cost Expected return on plan assets Amortization of: Net (gains) losses Net prior service (benefit) cost - Settlement costs - - - - - - - Curtailment (benefits) - - - - - - Net periodic (benefit) cost $ $ $ $ $ $ $ $ $ The curtailment gain in “United States” in the year ended September 30, 2014 pertained to amendments made to one of Woodward’s plans that resulted in a freeze to the benefits of certain U.S. employees in California. The curtailment gain in “Other Countries” in the year ended September 30, 2014 pertained to workforce reductions related to the closure of Woodward’s Swiss facility in connection with the realignment of the renewable power business that occurred in the third quarter of fiscal year 2013. Settlement costs were expensed in fiscal year 2013 as a result of normal attrition among participants in the Company's defined benefit plan in Switzerland. The following tables provide a reconciliation of the changes in the projected benefit obligation and fair value of assets for the defined benefit pension plans: At or for the Year Ended September 30, United States Other Countries Total 2015 2014 2015 2014 2015 2014 Changes in projected benefit obligation: Projected benefit obligation at beginning of year $ $ $ $ $ $ Service cost Interest cost Net actuarial losses Contribution by participants - Benefits paid Amounts paid by Company for Pension Protection Fund levy - - - - Plan amendments - - - - Settlements - - - - Curtailments - - - Foreign currency exchange rate changes - - Projected benefit obligation at end of year $ $ $ $ $ $ Changes in fair value of plan assets: Fair value of plan assets at beginning of year $ $ $ $ $ $ Actual return on plan assets Contributions by the company Contributions by plan participants - Benefits paid Settlements - - - - Foreign currency exchange rate changes - - Fair value of plan assets at end of year $ $ $ $ $ $ Net over/(under)funded status at end of year $ $ $ $ $ $ At September 30, 201 5 , the Company’s defined benefit pension plans in the United Kingdom represented $52,295 of the total projected benefit obligation and in Japan represented $9,936 of the total projected benefit obligation. At September 30, 201 5 , the United Kingdom represented $50,033 of the total fair value of plan assets and Japan represented $10,630 of the total fair value of plan assets. The accumulated benefit obligations of the Company’s defined benefit pension plans in the United States was $145,870 and in Other Countries was $59,742 at September 30, 201 5 , and in the United States was $137,423 and in Other Countries was $61,041 at September 30, 201 4 . Plans with accumulated benefit obligation in excess of plan assets Plans with accumulated benefit obligation less than plan assets At September 30, At September 30, 2015 2014 2015 2014 Projected benefit obligation $ $ $ $ Accumulated benefit obligation Fair value of plan assets The following tables provide the amounts recognized in the statement of financial position and accumulated comprehensive income for the defined benefit pension plans: At or for the Year Ended September 30, United States Other Countries Total 2015 2014 2015 2014 2015 2014 Amounts recognized in statement of financial position consist of: Other non-current assets $ - $ $ $ - $ $ Other non-current liabilities Net over/(under)funded status at end of year $ $ $ $ $ $ Amounts recognized in accumulated other comprehensive income consist of: Unrecognized net prior service cost $ $ $ - $ - $ $ Unrecognized net losses Total amounts recognized Deferred taxes Amounts recognized in accumulated other comprehensive income $ $ $ $ $ $ Other changes in plan assets and benefit obligations recorded in accumulated other comprehensive income were as follows: Year Ended September 30, United States Other Countries Total 2015 2014 2015 2014 2015 2014 Net (gain) loss $ $ $ $ $ $ Prior service cost - - - - $ Loss due to settlement or curtailment arising during the period - - - Amortization of: Net losses Prior service benefit (cost) - Foreign currency exchange rate changes - - Total recorded in accumulated other comprehensive loss (income) $ $ $ $ $ $ The amounts expected to be amortized from Accumulated Other Comprehensive Income and reported as a component of net periodic benefit cost during fiscal year 201 6 are as follows: United States Other Countries Total Prior service cost $ $ - $ Net actuarial losses Pension benefit payments are made from the assets of the pension plans. Using foreign exchange rates as of September 30, 201 5 and expected future service assumptions, it is anticipated that the future benefit payments will be as follows: Year Ending September 30, United States Other Countries Total 2016 $ $ $ 2017 2018 2019 2020 2021 – 2025 Woodward expects its pension plan contributions in fiscal year 201 6 will be $24 in the United States, $544 in the United Kingdom, and $251 in Japan. Pension plan assets The overall investment objective of the pension plan assets is to earn a rate of return over time which, when combined with Company contributions, satisfies the benefit obligations of the pension plans and maintains sufficient liquidity to pay benefits. As the timing and nature of the plan obligations varies for each Company sponsored pension plan, investment strategies have been individually designed for each pension plan with a common focus on maintaining diversified investment portfolios that provide for long-term growth while minimizing the risk to principal associated with short-term market behavior. The strategy for each of the plans balances the requirements to generate returns, using investments expected to produce higher returns, such as equity securities, with the need to control risk within the pension plans using less volatile investment assets, such as debt securities. A strategy of more equity-oriented allocation is adopted for those plans which have a longer-term investment plan based on the timing of the associated benefit obligations. A pension oversight committee is assigned by the Company to each pension plan. Among other responsibilities, each committee is responsible for all asset class allocation decisions. Asset class allocations, which are reviewed by the respective pension committee on at least an annual basis, are designed to meet or exceed certain market benchmarks which align with each plan’s investment objectives. In evaluating the asset allocation choices, consideration is given to the proper long-term level of risk for each plan, particularly with respect to the long-term nature of each plan’s liabilities, the impact of asset allocation on investment results and the corresponding impact on the volatility and magnitude of plan contributions and expense and the impact certain actuarial techniques may have on the plans’ recognition of investment experience. From time to time, the plans may move outside the prescribed asset class allocation in order to meet significant liabilities with respect to one or more individuals approaching retirement. Risks associated with the plan assets include interest rate fluctuation risk, market fluctuation risk, risk of default by debt issuers and liquidity risk. To manage these risks, the assets are managed by established, professional investment firms and performance is evaluated regularly by the Company’s pension oversight committee against specific benchmarks and each plan’s investment objectives. Liability management and asset class diversification are central to the Company’s risk management approach and overall investment strategy. The assets of the U.S. plans are invested in actively managed mutual funds. The assets of the plan in Japan and the plan in the United Kingdom are invested in actively managed pooled investment funds. Each individual mutual fund or pooled investment fund has been selected based on the investment strategy of the related plan, which mirrors a specific asset class within the associated target allocation. Pension plan assets at September 30, 201 5 and 201 4 do not include any direct investment in Woodward’s common stock. The asset allocations are monitored and rebalanced regularly by investment managers assigned to the individual pension plans. The actual allocations of pension plan assets and target allocation ranges by asset class, are as follows: At September 30, 2015 2014 Percentage of Plan Assets Target Allocation Ranges Percentage of Plan Assets Target Allocation Ranges United States: Asset Class Equity Securities 40.7% - 80.7% 40.7% - 80.7% Debt Securities 29.3% - 49.3% 29.3% - 49.3% Other 0.0% 0.0% United Kingdom: Asset Class Equity Securities 40.0% - 70.0% 40.0% - 70.0% Debt Securities 35.0% - 65.0% 35.0% - 65.0% Other 0.0% 0.0% Japan: Asset Class Equity Securities 36.0% - 44.0% 36.0% - 44.0% Debt Securities 55.0% - 63.0% 55.0% - 63.0% Other 0.0% - 2.0% 0.0% - 2.0% Actual allocations to each asset class can vary from target allocations due to periodic market value fluctuations, investment strategy changes, and the timing of benefit payments and contributions. The following table presents Woodward’s pension plan assets using the fair value hierarchy established by U.S. GAAP as of September 30, 201 5 and September 30, 2014 . At September 30, 2015 Level 1 Level 2 Level 3 United States Other Countries United States Other Countries United States Other Countries Total Asset Category: Cash and cash equivalents $ $ $ - $ - $ - $ - $ Mutual funds: U.S. corporate bond fund - - - - - U.S. equity large cap fund - - - - - International equity large cap growth fund - - - - - Pooled funds: Japanese equity securities - - - - - International equity securities - - - - - Japanese fixed income securities - - - - - International fixed income securities - - - - - Index linked U.K. equity fund - - - - - Index linked international equity fund - - - - - Index linked U.K. corporate bonds fund - - - - - Index linked U.K. government securities fund - - - - - Index linked U.K. long-term government securities fund - - - - - Total assets $ $ $ - $ $ - $ - $ At September 30, 2014 Level 1 Level 2 Level 3 United States Other Countries United States Other Countries United States Other Countries Total Asset Category: Cash and cash equivalents $ $ $ - $ - $ - $ - $ Mutual funds: U.S. corporate bond fund - - - - - U.S. equity large cap fund - - - - - International equity large cap growth fund - - - - - Pooled funds: Japanese equity securities - - - - - International equity securities - - - - - Japanese fixed income securities - - - - - International fixed income securities - - - - - Global target return equity/bond fund - - - - - Index linked U.K. equity fund - - - - - Index linked international equity fund - - - - - Index linked U.K. corporate bonds fund - - - - - Index linked U.K. government securities fund - - - - - Index linked U.K. long-term government securities fund - - - - - Total assets $ $ $ - $ $ - $ - $ Cash and cash equivalents: Cash and cash equivalents held by the Company's pension plans are held on deposit with creditworthy financial institutions. The fair value of the cash and cash equivalents are based on the quoted market price of the respective currency in which the cash is maintained. Pension assets invested in mutual funds : The assets of the Company’s U.S. pension plans are invested in various mutual funds which invest in both equity and debt securities. The fair value of the mutual funds is determined based on the quoted market price of each fund. Pension assets invested in pooled funds : The assets of the Company’s Japan and United Kingdom pension plans are invested in pooled investment funds, which include both equity and debt securities. The assets of the United Kingdom pension plan are invested in index-linked pooled funds which aim to replicate the movements of an underlying market index to which the fund is linked. Fair value of the pooled funds is based on the net asset value of shares held by the plan as reported by the fund sponsors. All pooled funds held by plans outside of the United States are considered to be invested in international equity and debt securities. Although the underlying securities may be largely domestic to the plan holding the investment assets, the underlying assets are considered international from the perspective of the Company. There were no transfers into or out of Level 3 assets in fiscal years 201 5 or 201 4 . Other postretirement benefit plans Woodward 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. Benefits include the option to elect company provided medical insurance coverage to age 65 and a Medicare supplemental plan after age 65. 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 Woodward’s other postretirement benefit plans. The postretirement medical benefit plans, other than the plan assumed in an acquisition in fiscal year 2009, were frozen in fiscal year 2006 and no additional employees may participate in the plans. Generally, employees who had attained age 55 and had rendered 10 or more years of service before the plans were frozen were eligible for these postretirement medical benefits. Certain participating retirees are required to contribute to the plans in order to maintain coverage. The plans provide postretirement medical benefits for approximately 850 retired employees and their covered dependents and beneficiaries and may provide future benefits to approximately 35 active employees and their covered dependents and beneficiaries, upon retirement, if the employees elect to participate. All t h e postretirement medical plans are fully insured for retirees who have attained age 65 . The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of postretirement benefits were as follows: 2015 2014 2013 Weighted-average discount rate used to determine benefit obligation at September 30 % % % Weighted-average discount rate used to determine net periodic benefit cost for years ended September 30 The discount rate assumption is intended to reflect the rate at which the postretirement benefits could be effectively settled based upon the assumed timing of the benefit payments. In the United States, prior to fiscal year 2015, Woodward used a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding t o determine the benefit obligations at year end. The discount rate used to determine periodic benefit costs for the years ended September 30, 2015 and prior were consistent with the discount rate used to determine the benefit obligation as of the prior fiscal year end. As of September 30, 2015, the discount rate used to determine the benefit obligation at year end was based on a high-quality corporate bond yield curve matched with projected separate cash flows to settle the entire benefit obligations . The discount rate used to determine periodic service cost and interest costs of the overall benefit costs for the year ending September 30, 2016 will be based on spot rates derived from the same high-quality corporate bond yield curve used to determine the September 30, 2015 benefit obligation matched with separate cash flows for each future year. In the United Kingdom, Woodward continues to use a high-quality corporate bond yield curve matched with separate cash flows to develop a single rate to determine the single rate equivalent to settle the entire benefit obligations . The discount rate used to determine periodic service cost and interest costs of the overall benefit costs for the year ending September 30, 2016 will be based on spot rates derived from the same high-quality corporate bond yield curve used to determine the September 30, 2015 benefit obligation matched with separate cash flows for each future year. Mortality assumptions are based on published mortality studies developed primarily based on past experience of the broad population and modified for projected longevity trends. The projected benefit obligations in the United States as of September 30, 2015 was based on the SOA’s RP-2014 Mortality Tables Report projected back to 2007 using the SOA’s MP-2014 and projected forward using a custom projection scale based on MP-2014 with a 10-year convergence period and a long-term rate of 0 .75%. As of September 30, 2014, mortality assumptions in the United States were based on the PPA Static 2014 tables. As of September 30, 2015 and September 30, 2014, mortality assumptions for the United Kingdom pension scheme were based on the SAPS S2 “all” tables with a projected 1.5% annual improvement rate. Assumed healthcare cost trend rates at September 30, were as follows: 2015 2014 Health care cost trend rate assumed for next year % % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) % % Year that the rate reaches the ultimate trend rate Healthcare costs have generally trended upward in recent years, sometimes by amounts greater than 5%. Assumed health care cost trend rates have a significant effect on the amounts reported for postretirement medical plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: Change In Health Care Cost Trend Rate 1% increase 1% decrease Effect on projected fiscal year 2016 service and interest cost $ $ Effect on accumulated postretirement benefit obligation at September 30, 2015 Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statements of Earnings: Year Ended September 30, 2015 2014 2013 Service cost $ $ $ Interest cost Amortization of: Net gains Net prior service benefit Net periodic cost $ $ $ The following table provides a reconciliation of the changes in the accumulated postretirement benefit obligation and fair value of assets for the postretirement benefits for the fiscal years ended September 30: Year Ended September 30, 2015 2014 Changes in accumulated postretirement benefit obligation: Accumulated postretirement benefit obligation at beginning of year $ $ Service cost Interest cost Premiums paid by plan participants Net actuarial losses Benefits paid Foreign currency exchange rate changes Accumulated postretirement benefit obligation at end of year $ $ Changes in fair value of plan assets: Fair value of plan assets at beginning of year $ - $ - Contributions by the company Premiums paid by plan participants Benefits paid Fair value of plan assets at end of year $ - $ - Funded status at end of year $ $ The Company’s postretirement medical plan in the United Kingdom represents $486 of the total benefit obligation at September 30, 201 5 . The Company paid $15 in medical benefits to participants of the United Kingdom postretirement medical plan in fiscal year 201 5 . The following tables provide the amounts recognized in the statement of financial position and accumulated comprehensive loss (income) for the postretirement plans: Year Ended September 30, 2015 2014 Amounts recognized in statement of financial position consist of: Accrued liabilities $ $ Other non-current liabilities Funded status at end of year $ $ Amounts recognized in accumulated other comprehensive loss (income) consist of: Unrecognized net prior service benefit $ $ Unrecognized net (gains) losses Total amounts recognized Deferred taxes Amounts recognized in accumulated other comprehensive loss (income) $ $ Woodward pays plan benefits from its general funds; therefore, there are no segregated plan assets as of September 30, 201 5 or September 30, 201 4 . The accumulated benefit obligations of the Company’s postretirement plans were $34,927 at September 30, 201 5 and $29,225 at September 30, 201 4 . Other changes in plan assets and benefit obligations recorded in accumulated other comprehensive income were as follows: Year Ended September 30, 2015 2014 Net loss $ $ Amortization of: Net gains Prior service benefit Foreign currency exchange rate changes Total recorded in accumulated other comprehensive loss $ $ Using foreign currency exchange rates as of September 30, 201 5 and expected future service, it is anticipated that the future Company contributions to pay benefits, excluding participate contributions, will be as follows: Year Ending September 30, 2016 $ 2017 2018 2019 2020 2021 – 2025 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: Year Ended September 30, 2015 2014 2013 Company contributions $ $ $ The plan in the Netherlands is a quasi-mandatory plan that covers all of Woodward’s employees in the Netherlands and is part of the Dutch national pension system. Woodward was notified by the Japanese plan administrator that the plan for its employees in Japan is being reorganized. Woodward has elected to remain in the reorganized plan and will incur no incremental cost for remaining in the reorganized plan. The Company may elect to withdraw from its multiemployer plan in Japan, although it has no plans to do so. If the Company elects to withdraw from the Japanese plan, it would incur a n immaterial one-time contribution cost. Changes in Japanese regulations could trigger reorganization of or abolishment of the Japanese multiemploy |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity and Stock-Based Compensation [Abstract] | |
Stockholders' Equity | Note 18. Stockholders’ Equity Common Stock Holders of Woodward’s common stock are entitled to receive dividends when and as declared by the Board of Directors and have the right to one vote per share on all matters requiring stockholder approval. Dividends declared and paid during the 201 5 , 201 4 and 201 3 fiscal years were: Year Ended September 30, 2015 2014 2013 Dividends declared and paid $ $ $ Dividend per share amount Stock Repurchase Program In the fourth quarter of fiscal year 2010, the Board of Directors authorized the repurchase of up to $200,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three -year period that ended in July 2013 (the “2010 Authorization”). Under the 2010 Authorization, Woodward purchased a total of 1,233 shares of its common stock with an aggregate purchase price of $45,754 in fiscal year 2013. In the fourth quarter of fiscal year 2013 , Woodward’s Board of Directors approved a stock repurchase plan, which replaced the 201 0 Authorization, that authorized the repurchase of up to $200,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three -year period that was to expire in July 2016 (the “2013 Authorization”). Woodward purchased a total of 622 shares of its common stock with an aggregate purchase price of $32,118 in fiscal year 2015 and a total of 3,272 shares of its common stock with an aggregate purchase price of $141,488 in fiscal year 2014 under the 2013 Authorization. In the second quarter of fiscal year 2015, Woodward’s Board of Directors terminated the 2013 Authorization and replaced the 2013 Authorization with a new program for the repurchase of up to $300,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three -year period that will end in 2018 (the “2015 Authorization”). In the third quarter of fiscal year 2015 , Woodward entered into the ASR Agreement with Goldman under which Woodward repurchased shares of its common stock for an aggregate purchase price of $125,000 . Upon execution of the ASR Agreement, Goldman initially delivered to Woodward 2,048 shares of common stock. Goldman completed the ASR Agreement on September 3, 2015 and delivered 458 additional shares to Woodward. The final number of shares delivered to Woodward was based generally on the average daily volume-weighted average price of Woodward stock during the term of the ASR Agreement. The total 2,506 shares of common stock repurchased under the ASR Agreement were repurchased under the 2015 Authorization. Stock-based compensation Non-qualified stock option awards and restricted stock awards are granted to key management members and directors of the Company. The grant date for these awards is used for the measurement date. Vesting would be accelerated in the event of retirement, disability, or death of a participant, or change in control of the Company, as defined in the individual stock option agreements. These awards are valued as of the measurement date and are amortized on a straight-line basis over the requisite vesting period for all awards, including awards with graded vesting. Stock for exercised stock options and for restricted stock awards is issued from treasury stock shares. Provisions governing the outstanding awards are included in the 2006 Omnibus Incentive Plan (the “2006 Plan”) and the 2002 Stock Option Plan (the “2002 Plan”). The 2006 Plan was approved by stockholders and became effective on January 25, 2006. No further grants will be made under the 2002 Plan. The 2006 Plan made 7,410 shares of Woodward’s common stock available for grants made on or after January 25, 2006, to members and directors of the Company, subject to annual award limits as specified in the 2006 Plan. There were 1,746 shares of Woodward’s common stock available for future grants as of September 30, 201 5 Stock-based compensation expense recognized was as follows: Year Ended September 30, 2015 2014 2013 Employee stock-based compensation expense $ $ $ 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 shares of Woodward’s common stock, including in the form of 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 generally 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. Year Ended September 30, 2015 2014 2013 Expected term (years) 6.2 - 8.8 5.8 - 8.6 5.8 - 8.6 Estimated volatility 36.5% 38.5% 48.7% - 54.9% Estimated dividend yield 0.7% 0.8% 0.8% - 1.0% Risk-free interest rate 2.0% - 2.3% 1.7% - 2.5% 0.8% - 1.3% The weighted average grant date fair value of options granted follows: Year Ended September 30, 2015 2014 2013 Weighted-average grant date fair value of options $ $ $ The following is a summary of the activity for stock option awards during the fiscal year ended September 30, 2015: Number Weighted-Average Exercise Price Balance at September 30, 2014 $ Options granted Options exercised Options forfeited Balance at September 30, 2015 Exercise prices of stock options outstanding as of September 30, 2015 range from $12.54 to $46.55 . Changes in non-vested stock options during the fiscal year ended September 30, 2015 were as follows: Number Weighted-Average Exercise Price Balance at September 30, 2014 $ Options granted Options vested Options forfeited Balance at September 30, 2015 Information about stock options that have vested, or are expected to vest, and are exercisable at September 30, 2015 was as follows: Number Weighted- Average Exercise Price Weighted- Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 4,641 $ 5.7 $ Options vested and exercisable 2,917 4.3 Options vested and expected to vest 4,564 5.6 Other information follows: Year Ended September 30, 2015 2014 2013 Total fair value of stock options vested $ $ $ Total intrinsic value of options exercised Cash received from exercises of stock options Excess tax benefit realized from exercise of stock options 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 A. 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 specified 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 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. A summary of the activity for restricted stock awards in the fiscal year ended September 30, 2015 follows: Number Fair Value per Share Balance at September 30, 2014 $ Shares granted - n/a Shares vested - n/a Shares forfeited - n/a Balance at September 30, 2015 Woodward recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Pursuant to the form stock option agreements, the requisite service period can be less than the four year vesting period due to grantee’s retirement eligibility. As such, the recognition of stock-based compensation expense associated with some grants can be accelerated to a period of less than four years, including immediate recognition of stock-based compensation on the date of grant. At September 30, 2015, there was approximately $9,412 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 1.4 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure | |
Commitments and Contingencies | Note 19. Commitments and contingencies Woodward has entered into operating leases for certain facilities and equipment with terms in excess of one year under agreements that expire at various dates . Some leases require the payment of property taxes, insurance, and maintenance costs in addition to rental payments. Future minimum rental payments required under these leases, excluding available option renewals, are as follows: Year Ending September 30, 2016 $ 2017 2018 2019 2020 Thereafter Total $ Rent expense for all operating leases totaled: Year Ended September 30, 2015 2014 2013 Rent expense $ $ $ Woodward enters into unconditional purchase obligation arrangements (i.e. issuance of purchase orders, obligations to transfer funds in the future for fixed or minimum quantities of goods or services at fixed or minimum prices, such as "take-or-pay" contracts) in the normal course of business to ensure that adequate levels of sourced product are available to Woodward. Future minimum unconditional purchase obligations are as follows: Year Ending September 30, 2016 $ 2017 2018 - 2019 - 2020 - Thereafter - Total $ Woodward also has construction related contractual obligations of approximately $ 26,660 as of September 30, 201 5 related to a new campus at its corporate headqua rters in Fort Collins, Colorado . The U.S. Government, and other governments, may terminate any of Woodward’s government contracts (and, in general, subcontracts) at their convenience, as well as for default based on specified performance measurements. If any of Woodward’s government contracts were to be terminated for convenience, the Company generally would be entitled to receive payment for work completed and allowable termination or cancellation costs. If any of Woodward’s government contracts were to be terminated for Woodward’s default, the U.S. Government generally would pay only for the work accepted, and could require Woodward to pay the difference between the original contract price and the cost to re-procure the contract items, net of the work accepted from the original contract. The U.S. Government could also hold Woodward liable for damages resulting from the default. Woodward is currently involved in claims, pending or threatened litigation or 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 termina tion benefits to such officers. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2015 | |
Segment Information | |
Segment Information | Note 20 . Segment information Woodward serves the aerospace, industrial and energy market s through its two reportable segments - Aerospace and Energy. Woodward’s reportable segments are aggregations of Woodward’s operating segments. Woodward uses operating segment information internally to manage its business, including the assessment of operating segment performance and decisions for the allocation of resources between operating segments. The accounting policies of the reportable segments are the same as those of the Company. Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period. In connection with that assessment, Woodward excludes matters such as charges for restructuring costs, interest income and expense, certain gains and losses from asset dispositions , or other non-recurring and/or non-operationally related expenses . A summary of consolidated net sales and earnings by segment follows: Year Ended September 30, 2015 2014 2013 Segment external net sales: Aerospace $ $ $ Energy Total consolidated net sales $ $ $ Segment earnings: Aerospace $ $ $ Energy Total segment earnings Nonsegment expenses Interest expense, net Consolidated earnings before income taxes $ $ $ Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets, consolidated depreciation and amortization and consolidated capital expenditures follows: Year Ended September 30, 2015 2014 2013 Segment assets: Aerospace $ $ $ Energy Total segment assets Unallocated corporate property, plant and equipment, net Other unallocated assets Consolidated total assets $ $ $ Segment depreciation and amortization: Aerospace $ $ $ Energy Total segment depreciation and amortization Unallocated corporate amounts Consolidated depreciation and amortization $ $ $ Segment capital expenditures: Aerospace $ $ $ Energy Total segment capital expenditures Unallocated corporate amounts Consolidated capital expenditures $ $ $ Sales to General Electric were made by all of Woodward’s reportable segments and totaled approximately 18% of net sales in fiscal year 201 5 , 15% of net sales in fiscal year 201 4 , and 15% of net sales in fiscal year 201 3 . Accounts receivable from General Electric totaled approximately 15 % of accounts receivable at September 30, 201 5 and 12% of accounts receivable at September 30, 201 4 . U.S. Government related sales from Woodward’s reportable segments were as follows: Direct U.S. Government Sales Indirect U.S. Government Sales Total U.S. Government Related Sales Fiscal year ended September 30, 2015 Aerospace $ $ $ Energy Total net external sales $ $ $ Percentage of total net sales Fiscal year ended September 30, 2014 Aerospace $ $ $ Energy Total net external sales $ $ $ Percentage of total net sales Fiscal year ended September 30, 2013 Aerospace $ $ $ Energy Total net external sales $ $ $ Percentage of total net sales Accounts receivable from the U.S. Government totaled approximately 3% of accounts receivable at September 30, 2015 and 2% of accounts receivable at September 30, 2014. The customers who account for approximately 10% or more of sales to each of Woodward’s reporting segments for the fiscal year ended September 30, 2015 follow: Customer Aerospace General Electric, Boeing, United Technologies Energy General Electric Net sales by geographical area, as determined by the location of the customer invoiced, were as follows: Year Ended September 30, 2015 2014 2013 United States $ $ $ Europe (1) Asia Other countries Consolidated net sales $ $ $ (1) As a percentage of consolidated net sales, net sales to customers in Germany accounted for 10% for the year ended September 30, 201 5 , 9% for the year ended September 30, 201 4 and 9% for the year ended September 30, 201 3 . Property, plant, and equipment, net by geographical area, as determined by the physical location of the assets, were as follows: At September 30, 2015 2014 United States $ $ Germany Other countries Consolidated property, plant and equipment, net $ $ |
Supplemental Quarterly Financia
Supplemental Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2015 | |
Quarterly Financial Information Disclosure | |
Supplemental Quarterly Financial Data (Unaudited) | Note 21. Supplemental quarterly financial data (Unaudited) Quarterly results for the fiscal years ended September 30, 201 5 and September 30, 201 4 follow: 2015 Fiscal Quarters First Second Third Fourth Net sales $ $ $ $ Gross margin (1) Earnings before income taxes Net earnings Earnings per share Basic earnings per share Diluted earnings per share Cash dividends per share 2014 Fiscal Quarters First Second Third Fourth Net sales $ $ $ $ Gross margin (1) Earnings before income taxes Net earnings Earnings per share Basic earnings per share Diluted earnings per share Cash dividends per share Notes: 1. Gross margin represents net sales less cost of goods sold excluding amortization expense. Quarterly results by segment for the fiscal years ended September 30, 201 5 and September 30, 201 4 follow: 2015 Fiscal Quarters First Second Third Fourth Segment external net sales: Aerospace $ $ $ $ Energy Total $ $ $ $ Segment earnings: Aerospace $ $ $ $ Energy Total $ $ $ $ Earnings reconciliation: Total segment earnings $ $ $ $ Nonsegment expenses Interest expense, net Consolidated earnings before income taxes $ $ $ $ 2014 Fiscal Quarters First Second Third Fourth Segment external net sales: Aerospace $ $ $ $ Energy Total $ $ $ $ Segment earnings: Aerospace $ $ $ $ Energy Total $ $ $ $ Earnings reconciliation: Total segment earnings $ $ $ $ Nonsegment expenses Interest expense, net Consolidated earnings before income taxes $ $ $ $ |
Schedule II
Schedule II | 12 Months Ended |
Sep. 30, 2015 | |
Valuation and Qualifying Accounts | |
Schedule II | WOODWARD, INC. AND SUBSIDIARIES SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS For the years ended Se ptember 30, 2015, 2014, and 2013 (in thousands) Column A Column B Column C Column D Column E Additions Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts (a) Deductions (b) Balance at End of Year Fiscal year 2015 Allowance for doubtful accounts $ $ $ $ $ Deferred tax asset valuation allowance - Fiscal year 2014 Allowance for doubtful accounts Deferred tax asset valuation allowance - Fiscal year 2013 Allowance for doubtful accounts Deferred tax asset valuation allowance - - Notes: (a) Includes recoveries of accounts previously written off. (b) Represents accounts receivable written off against the allowance for doubtful accounts and releases of valuation reserves to income tax expense. Also included are foreign currency exchange rate adjustments. Currency translation adjustments resulted in a decrease in the reserves of $ 934 in fiscal year 2015, a decrease in the reserve of $704 in fiscal year 2014, and an increase in the reserve of $155 in fiscal year 2013. |
Operations and summary of sig30
Operations and summary of significant accounting policies (Policy) | 12 Months Ended |
Sep. 30, 2015 | |
Principles of consolidation | Principles of consolidation: These Consolidated Financial Statements are prepared in accordance with U.S. GAAP and include the accounts of Woodward and its wholly and majority-owned subsidiaries. Transactions within and between these companies are eliminated. |
Use of estimates | Use of estimates: The preparation of the Consolidated Financial Statements requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, at the date of the financial statements and the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures. Significant estimates include allowances for uncollectible amounts, net realizable value of inventories, customer rebates earned, useful lives of property and identifiable intangible assets, the evaluation of impairments of property, identifiable intangible assets and goodwill, the provision for income tax and related 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 contingencies. Actual results could vary materially from Woodward’s estimates. |
Foreign currency exchange rates | Foreign currency exchange rates: The assets and liabilities of substantially all subsidiaries outside the United States are translated at fiscal year-end rates of exchange, and earnings and cash flow statements are translated at weighted-average rates of exchange. Translation adjustments are accumulated with other comprehensive (loss) earnings as a separate component of stockholders’ equity and are presented net of tax effects in the Consolidated Statements of Stockholders’ Equity. The effects of changes in foreign currency exchange rates on loans between consolidated subsidiaries, that are considered permanent in nature, are also accumulated with other comprehensive earnings, net of tax. The Company is exposed to market risks related to fluctuations in foreign currency exchange rates because some sales transactions, and certain of the assets and liabilities of its domestic and foreign subsidiaries, are denominated in foreign currencies. Selling, general, and administrative expenses include net foreign currency losses of $1,721 in fiscal year 2015, $1,089 in fiscal year 2014, and $2,738 in fiscal year 2013. |
Revenue recognition | Revenue recognition: Woodward recognizes revenue upon shipment or delivery of products or services and when collectability is reasonably assured. Delivery is upon completion of manufacturing, customer acceptance, and the transfer of the risks and rewards of ownership. In countries whose laws provide for retention of some form of title by sellers, enabling recovery of goods in the event of customer default on payment, product delivery is considered to have occurred when the customer has assumed the risks and rewards of ownership of the products. Occasionally, Woodward transfers title of product to customers, but retains substantive performance obligations such as completion of product testing, customer acceptance or in some instances regulatory acceptance. In addition, occasionally customers pay Woodward for products or services prior to Woodward satisfying its performance obligation. Under these circumstances, revenue is deferred until the performance obligations are satisfied. In addition, service revenue is also recognized upon completion of applicable performance obligations. Certain Woodward products include incidental software or firmware essential to the performance of the product as designed, which are treated as units of accounting associated with the related tangible product with which the software is included. Woodward does not sell software on a standalone basis, although software upgrades, if any, are generally paid for by the customer. Product freight costs are included in cost of goods sold. Freight costs charged to customers are included in net sales. Taxes collected from customers and remitted to government authorities are excluded from revenue and are recorded as liabilities until the taxes are remitted to the appropriate U.S. or foreign government authority. Net sales from service activities were less than 10% of total net sales for fiscal years 2015, 2014 and 2013. |
Customer payments | Customer payments: Woodward occasionally agrees to make payments to certain customers in order to participate in anticipated sales activity. Payments made to customers are accounted for as a reduction of revenue unless they are made in exchange for identifiable goods or services with fair values that can be reasonably estimated. Reductions in revenue associated with these customer payments are recognized immediately to the extent that the payments cannot be attributed to anticipated future sales, and are recognized in future periods to the extent that the payments relate to anticipated future sales. Such determinations are based on the facts and circumstances underlying each payment. |
Stock-based compensation | Stock-based compensation: Compensation cost relating to stock-based payment awards made to employees and directors is recognized in the financial statements using a fair value method. Non-qualified stock option awards and restricted stock awards are issued under Woodward’s stock-based compensation plans. The cost of such awards, measured at the grant date, is based on the estimated fair value of the award. Forfeitures are estimated at the time of each grant in order to estimate the portion of the award that will ultimately vest. The estimate is based on Woodward’s historical rates of forfeitures and is updated periodically. The portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods, which is generally the vesting period of the awards. |
Research and development | Research and development costs : Company funded expenditures related to new product development, and significant product enhancement and/or upgrade activities are expensed as incurred and are separately reported in the Consolidated Statements of Earnings. |
Income taxes | Income taxes: Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of Woodward’s assets, liabilities, and certain unrecognized gains and losses recorded in accumulated other comprehensive earnings. Woodward provides for taxes that may be payable if undistributed earnings of overseas subsidiaries were to be remitted to the United States, except for those earnings that it considers to be indefinitely invested. |
Cash equivalents | Cash equivalents: Highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. Cash and cash equivalents are maintained with multiple financial institutions. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. Woodward holds cash and cash equivalents at financial institutions in excess of amounts covered by the Federal Depository Insurance Corporation (the “FDIC”), sometimes invests excess cash in money market funds not insured by the FDIC, and holds cash and cash equivalents outside the United States that are not insured by the FDIC. |
Accounts receivable | Accounts receivable: Almost all of Woodward’s sales are made on credit and result in accounts receivable, which are recorded at the amount invoiced and are generally not collateralized. In the normal course of business, not all accounts receivable are collected and, therefore, an allowance for uncollectible amounts 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, bankers’ acceptance notes issued by creditworthy Chinese banks. Bankers’ acceptance notes are financial instruments issued by Chinese financial institutions as part of financing arrangements between the financial institution and a customer of the financial institution. Bankers’ acceptance notes 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 banker’s acceptance note as of the maturity date. The maturity date of bankers’ acceptance notes varies, but it is Woodward’s policy to only accept bankers’ acceptance notes 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 banker’s acceptance note from a customer, such customer has no further obligation to pay Woodward for the related accounts receivable balance. Woodward only accepts bankers’ acceptance notes issued by creditworthy banks as to which the credit risk associated with the bankers acceptance note is assessed to be minimal. The composition of Woodward’s accounts receivable at September 30, 2015 and September 30, 2014 follows: September 30, September 30, 2015 2014 Accounts receivable from: Customers $ $ Other (Chinese financial institutions) Allowance for uncollectible customer amounts $ $ |
Inventories | Inventories: Inventories are valued at the lower of cost or net realizable value, with cost being determined using methods that approximate a first-in, first-out basis. Customer deposits are recorded against inventory when the right of offset exists. There were no customer deposits included in inventory as of September 30, 2015 and 2014. All other customer deposits are recorded in accrued liabilities. |
Property, plant and equipment | Property, plant, and equipment: Property, plant, and equipment are recorded at cost and are depreciated over the estimated useful lives of the assets. Assets are generally depreciated using the straight-line method or units of production method. Assets are tested for recoverability whenever events or circumstances indicate the carrying value may not be recoverable. Estimated lives over which fixed assets are generally depreciated at September 30, 2015 were as follows: Land improvements 3 - 40 years Buildings and improvements 3 - 40 years Leasehold improvements 1 - 40 years Machinery and production equipment 3 - 15 years Computer equipment and software 3 - 10 years Office furniture and equipment 3 - 13 years Other 3 - 13 years Included in computer equipment and software are Woodward’s enterprise resource planning (“ERP”) systems, which have an estimated useful life of 10 years. All other computer equipment and software is generally depreciated over three to five years. |
Purchase accounting | Purchase accounting: Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method, assets and liabilities, including intangible assets, are recorded at their fair values as of the acquisition date. Acquisition costs in excess of amounts assigned to assets acquired and liabilities assumed are recorded as goodwill. |
Goodwill | Goodwill: 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. There was no impairment charge recorded in fiscal years 2015, 2014, or 2013. |
Other intangibles | Other intangibles: Other intangibles are recognized apart from goodwill whenever an acquired intangible asset arises from contractual or other legal rights, or whenever it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset, or liability. All of Woodward’s intangibles have an estimated useful life and are being amortized using patterns that reflect the periods over which the economic benefits of the assets are expected to be realized. Impairment losses are recognized if the carrying amount of an intangible is both not recoverable and exceeds its fair value. Estimated lives over which intangible assets are amortized at September 30, 2015 were as follows: Customer relationships 9 - 30 years Intellectual property 10 - 17 years Process technology 8 - 30 years Other 4 - 15 years |
Impairment of long-lived assets | Impairment of long-lived assets: Woodward reviews the carrying amount of its long-lived assets or asset groups to be used in operations whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, the Company would assess the recoverability of an asset group by determining if the carrying amount of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying amount of the asset group is not recoverable, the Company will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset groups carrying amount and its estimated fair value. There was an impairment charge of $3,138 recorded in fiscal year 2014 related to a write down to fair value of assets held for sale. There were no impairment charges recorded in fiscal years 2015 or 2013 |
Investments in marketable equity securities | Investment in marketable equity securities: Woodward holds marketable equity securities 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 associated obligation to provide benefits is included in “Other liabilities.” |
Investments in unconsolidated subsidiaries | Investments in unconsolidated subsidiaries: Investments in and operating results of entities in which Woodward does not have a controlling financial interest or the ability to exercise significant influence over the operations are included in the financial statements using the cost method of accounting. Investments and operating results of entities in which Woodward does not have a controlling interest but does have the ability to exercise significant influence over operations are included in the financial statements using the equity method of accounting. |
Derivatives | Derivatives: The Company is exposed to various market risks that arise from transactions entered into in the normal course of business. The Company has historically utilized derivative instruments, such as treasury lock agreements to lock in fixed rates on future debt issuances, which qualify as cash flow or fair value hedges to mitigate the risk of variability in cash flows related to future interest payments attributable to changes in the designated benchmark rate. The Company records all such interest rate hedge instruments on the balance sheet at fair value. Cash flows related to the instrument designated as a qualifying hedge are reflected in the accompanying Consolidated Statements of Cash Flows in the same categories as the cash flows from the items being hedged. Accordingly, cash flows relating to the settlement of interest rate derivatives hedging the forecasted future interest payments on debt have been reflected upon settlement as a component of financing cash flows. The resulting gain or loss from such settlement is deferred to other comprehensive income and reclassified to interest expense over the term of the underlying debt. This reclassification of the deferred gains and losses impacts the interest expense recognized on the underlying debt that was hedged and is therefore reflected as a component of operating cash flows in periods subsequent to settlement. The periodic settlement of interest rate derivatives hedging outstanding variable rate debt is recorded as an adjustment to interest expense and is therefore reflected as a component of operating cash flows. From time to time, Woodward will enter into foreign currency exchange rate contracts to hedge against changes in foreign currency exchange rates on liabilities expected to be settled at a future date. Woodward has historically not designated these transactions as accounting hedges. The fair value of foreign currency exchange rate contracts held at the end of the period are recognized in the balance sheet and the unrealized gains or losses are recorded to “Other (income) expense, net” in the Consolidated Statements of Earnings. Upon settlement of foreign currency exchange rate contracts, any unrealized gains or losses previously recognized are reversed and the realized gain or loss is recorded to “Other (income) expense, net” in the Consolidated Statement of Earnings. Further information on foreign currency exchange rate contracts can be found at Note 6, Derivative instruments and hedging activities . |
Financial Instruments | Financial instruments: The Company’s financial instruments include cash and cash equivalents, investments in the deferred compensation program, notes receivable from municipalities, and debt. Because of their short-term maturity, the carrying amount of cash and cash equivalents and short-term debt approximate fair value. The fair value of investments in the deferred compensation program are adjusted to fair value based on the quoted market prices for the investments in the various mutual funds owned. The fair value of the long-term notes from municipalities are estimated based on a model that discounts future principal and interest payments received at interest rates available to the Company at the end of the period for similarly rated municipality notes of similar maturity. The fair value of long-term debt is estimated based on a model that discounts future principal and interest payments at interest rates available to the Company at the end of the period for similar debt with the same maturity. Further information on the fair value of financial instruments can be found at Note 5, Financial instruments and fair value measurements . Financial assets and liabilities recorded at fair value in the 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. |
Postretirement benefits | Postretirement benefits: The Company provides various benefits to certain current and former employees through defined benefit pension and postretirement plans. For financial reporting purposes, net periodic benefits expense and related obligations are calculated using a number of significant actuarial assumptions. Changes in net periodic expense and funding status may occur in the future due to changes in these assumptions. The funded status of defined pension and postretirement plans recognized in the statement of financial position is measured as the difference between the fair market value of the plan assets and the benefit obligation. For a defined benefit pension plan, the benefit obligation is the projected benefit obligation; for any ot her defined benefit postretirement plan, such as a retiree health care plan, the benefit obligation is the accumulated benefit obligation. Any over-fun ded status is recognized as an asset and any underfunded status is recognized as a liability. Projected benefit obligation is the actuarial present value as of the measurement date of all benefits attributed by the plan benefit formula to employee service rendered before the measurement date using assumptions as to future compensation levels if the plan benefit formula is based on those future compensation levels. Accumulated benefit obligation is the actuarial present value of benefits (whether vested or unvested) attributed by the plan benefit formula to employee service rendered before the measurement date and based on employee service and compensation, if applicable, prior to that date. Accumulated benefit obligation differs from projected benefit obligation in that it includes no assumption about future compensation levels. |
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits [Member] | |
Deferred compensation | Deferred compensation: The Company maintains a deferred compensation plan, or “rabbi trust,” as part of its overall compensation package for certain employees. Deferred compensation obligations will be settled either by delivery of a fixed number of shares of Woodward’s common stock (in accordance with certain eligible members’ irrevocable elections) or in cash. Woodward has contributed shares of its common stock into a trust established for the future settlement of deferred compensation obligations that are payable in shares of Woodward’s common stock. Common stock held by the trust is reflected in the Consolidated Balance Sheet as “Treasury stock held for deferred compensation” and the related deferred compensation obligation is reflected as a separate component of equity in amounts equal to the fair value of the common stock at the dates of contribution. These accounts are not adjusted for subsequent changes in the fair value of the common stock. Deferred compensation obligations that will be settled in cash are accounted for on an accrual basis in accordance with the terms of the underlying contract and are reflected in the Consolidated Balance Sheet as “Other liabilities.” |
Operatons and summary of signif
Operatons and summary of significant accounting policies (Table) | 12 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation | |
Schedule of Accounts Receivable | September 30, September 30, 2015 2014 Accounts receivable from: Customers $ $ Other (Chinese financial institutions) Allowance for uncollectible customer amounts $ $ |
Schedule of Property, Plant and Equipment Useful Lives | Land improvements 3 - 40 years Buildings and improvements 3 - 40 years Leasehold improvements 1 - 40 years Machinery and production equipment 3 - 15 years Computer equipment and software 3 - 10 years Office furniture and equipment 3 - 13 years Other 3 - 13 years |
Schedule of Finite-Lived Intangible Assets Useful Lives | Customer relationships 9 - 30 years Intellectual property 10 - 17 years Process technology 8 - 30 years Other 4 - 15 years |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share | |
Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted | Year Ended September 30, 2015 2014 2013 Numerator: Net earnings $ $ $ Denominator: Basic shares outstanding Dilutive effect of stock options and restricted stock Diluted shares outstanding Income per common share: Basic earnings per share $ $ $ Diluted earnings per share $ $ $ |
Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share | Year Ended September 30, 2015 2014 2013 Options Weighted-average option price $ $ $ |
Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding | Year Ended September 30, 2015 2014 2013 Weighted-average treasury stock shares held for deferred compensation obligations |
Joint Ventures and Business Acq
Joint Ventures and Business Acquisitions (Tables) - Business Acquisition, Acquiree - Duarte Business [Member] | 12 Months Ended |
Sep. 30, 2015 | |
Schedule of the Purchase Price | Cash paid to Seller $ Less cash acquired Total purchase price $ |
Schedule of Purchase Price Allocation | Accounts receivable $ Inventories Other current assets Property, plant, and equipment Goodwill Intangible assets Other noncurrent assets Total assets acquired Other current liabilities Other noncurrent liabilities Total liabilities assumed Net assets acquired $ |
Schedule of Finite-Lived Intangible Assets Acquired | Estimated Amounts Weighted-Average Useful Life Amortization Method Customer relationships and contracts $ years Straight-line Process technology years Straight-line Backlog years Accelerated Total $ |
Schedule of Unaudited Pro Forma Results | Year Ended September 30, 2013 As reported Pro forma Net sales $ $ Net earnings Earnings per share: Basic earnings per share $ $ Diluted earnings per share |
Financial Instruments and Fai34
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Financial Instruments and Fair Value Measurments | |
Financial Assets that are Measured at Fair Value on a Recurring Basis | At September 30, 2015 At September 30, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Cash $ $ - $ - $ $ $ - $ - $ Investments in money market funds - - - - Investments in reverse repurchase agreements - - - - Equity securities - - - - Total financial assets $ $ - $ - $ $ $ - $ - $ |
Estimated Fair Values of Financial Instruments | At September 30, 2015 At September 30, 2014 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 Liabilities: Short-term borrowings 2 - - Long-term debt, including current portion 2 |
Derivative Instruments and He35
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities | |
Impact of Derivative Instruments on Earnings | Year Ended September 30, 2015 2014 2013 Amount of (income) expense recognized in earnings on derivative $ $ $ Amount of (gain) loss recognized in accumulated OCI on derivative - - Amount of (gain) loss reclassified from accumulated OCI into earnings |
Supplemental Statements of Ca36
Supplemental Statements of Cash Flows Information (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Supplemental Statements of Cash Flows Information | |
Schedule of Cash Flow Supplemental Disclosures | Year Ended September 30, 2015 2014 2013 Interest paid, net of amounts capitalized $ $ $ Income taxes paid Income tax refunds received Non-cash activities: Purchases of property, plant and equipment on account Common shares issued from treasury to settle benefit plan obligations (Note 18) Notes receivable from municipalities for economic development incentives - Cashless exercise of stock options Settlement of receivable through cashless acquisition of treasury shares in connection with the cashless exercise of stock options |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Inventories | |
Schedule of Inventories | September 30, September 30, 2015 2014 Raw materials $ $ Work in progress Component parts (1) Finished goods $ $ |
Property, Plant, and Equipmen38
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Property, Plant, and Equipment, Net | |
Schedule of Property Plant and Equipment, Net | September 30, September 30, 2015 2014 Land and land improvements $ $ Buildings and improvements Leasehold improvements Machinery and production equipment Computer equipment and software Office furniture and equipment Other Construction in progress Less accumulated depreciation Property, plant and equipment, net $ $ |
Schedule of Depreciation Expense | Year Ended September 30, 2015 2014 2013 Depreciation expense $ $ $ |
Schedule of Capitalized Interest | Year Ended September 30, 2015 2014 2013 Capitalized interest $ $ $ |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Goodwill Disclosure | |
Schedule of Goodwill | September 30, 2014 Effects of Foreign Currency Translation September 30, 2015 Aerospace $ $ - $ Energy Consolidated $ $ $ September 30, 2013 Effects of Foreign Currency Translation September 30, 2014 Aerospace $ $ $ Energy Consolidated $ $ $ |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Intangible Assets, Net | |
Schedule of Finite-Lived Intangible Assets by Major Class | September 30, 2015 September 30, 2014 Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Customer relationships and contracts: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Intellectual property: Aerospace $ - $ - $ - $ - $ - $ - Energy Total $ $ $ $ $ $ Process technology: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Other intangibles: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Total intangibles: Aerospace $ $ $ $ $ $ Energy Consolidated Total $ $ $ $ $ $ |
Schedule of Finite-Lived Intangible Assets Amortization Expense | Year Ended September 30, 2015 2014 2013 Amortization expense $ $ $ |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Year Ending September 30: 2016 $ 2017 2018 2019 2020 Thereafter $ |
Credit Facilities, Short-term41
Credit Facilities, Short-term Borrowings and Long-term Debt (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure | |
Short-term Borrowings and Availability Under Various Short-term Credit Facilities | Total availability Outstanding letters of credit and guarantees Outstanding borrowings Remaining availability Revolving credit facility $ $ $ $ Foreign lines of credit and overdraft facilities - Foreign performance guarantee facilities - $ $ $ $ |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, September 30, 2015 2014 Revolving credit facility - Floating rate (LIBOR plus 0.85% - 1.65%), due April 2020 , unsecured Series C notes – 5.92%, due October 2015; unsecured Series D notes – 6.39%, due October 2018; unsecured Series E notes – 7.81%, due April 2016; unsecured Series F notes – 8.24%, due April 2019; unsecured Series G notes – 3.42%, due November 2020; unsecured Series H notes – 4.03%, due November 2023; unsecured Series I notes – 4.18%, due November 2025; unsecured Series J notes – Floating rate (LIBOR plus 1.25%), due November 2020; unsecured Series K notes – 4.03%, due November 2023; unsecured Series L notes – 4.18%, due November 2025; unsecured Total long-term debt $ $ |
Schedule of Future Principal Payments of Long-term Debt [Table Text Block] | Year Ending September 30: 2016 $ 2017 - 2018 - 2019 2020 - Thereafter $ |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accrued Liabilities | |
Accrued Liabilities | At September 30, 2015 2014 Salaries and other member benefits $ $ Warranties Interest payable Current portion of acquired performance obligations and unfavorable contracts (1) Accrued retirement benefits Deferred revenues Taxes, other than income Other $ $ |
Warranties | At September 30, 2015 2014 2013 Warranties, beginning of period $ $ $ Expense Increases due to acquisition of Duarte Business - - Reductions for settling warranties Foreign currency exchange rate changes Warranties, end of period $ $ $ |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Other Liabilities | |
Schedule of Other Liabilities | At September 30, 2015 2014 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ $ Total unrecognized tax benefits, net of offsetting adjustments Acquired performance obligations and unfavorable contracts (1) Deferred economic incentives (2) Other $ $ |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Other (Income) Expense, Net | |
Schedule of Other (Income) Expense, Net | Year Ended September 30, 2015 2014 2013 Net (gain) loss on sale of assets $ $ $ Rent income Net (gain) loss on investments in deferred compensation program Other $ $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Income Taxes | |
Components of Income Tax Expense (Benefit) | Year Ended September 30, 2015 2014 2013 Current: Federal $ $ $ State Foreign Deferred: Federal State Foreign $ $ $ |
Earnings Before Income Taxes by Geographical Area | Year Ended September 30, 2015 2014 2013 United States $ $ $ Other countries $ $ $ |
Composition of Deferred Income Taxes | At September 30, 2015 2014 Deferred tax assets: Defined benefit plans, Other postretirement $ $ Foreign net operating loss carryforwards Inventory Deferred and stock-based compensation Defined benefit plans, Pension Other reserves Tax credits and incentives Other Valuation allowance Total deferred tax assets, net of valuation allowance Deferred tax liabilities: Goodwill and intangibles - net Property, plant and equipment Other Total deferred tax liabilities Net deferred tax liabilities $ $ |
Reconciliation of U.S. Statutory Tax Rate to Effective Tax Rate | Year Ending September 30, Percent of pretax earnings 2015 2014 2013 Statutory tax rate % % % State income taxes, net of federal tax benefit Taxes on international activities Research credit Retroactive extension of research credit - Domestic production activities deduction Adjustments of prior period tax items Other items, net - Effective tax rate % % % |
Reconciliation of the Beginning and Ending Amounts of Gross Unrecognized Tax Benefits | Year Ending September 30, 2015 2014 2013 Beginning balance $ $ $ Additions to current year tax positions Reductions to prior year tax positions - Additions to prior year tax positions Lapse of applicable statute of limitations Ending balance $ $ $ |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Pension Plans, Defined Benefit [Member] | |
Schedule of Actuarial Assumptions Used | 2015 2014 2013 United States: Weighted-average assumptions to determine benefit obligation at September 30: Discount rate % % % Rate of compensation increase n/a Weighted-average assumptions to determine periodic benefit costs for years ended September 30: Discount rate Rate of compensation increase n/a Long-term rate of return on plan assets United Kingdom: Weighted-average assumptions to determine benefit obligation at September 30: Discount rate % % % Rate of compensation increase Weighted-average assumptions to determine periodic benefit costs for years ended September 30: Discount rate Rate of compensation increase Long-term rate of return on plan assets Japan: Weighted-average assumptions to determine benefit obligation at September 30: Discount rate % % % Rate of compensation increase Weighted-average assumptions to determine periodic benefit costs for years ended September 30: Discount rate Rate of compensation increase Long-term rate of return on plan assets Switzerland: Weighted-average assumptions to determine benefit obligation at September 30: Discount rate n/a n/a % Rate of compensation increase n/a n/a Weighted-average assumptions to determine periodic benefit costs for years ended September 30: Discount rate n/a Rate of compensation increase n/a Long-term rate of return on plan assets n/a |
Schedule of Net Periodic Benefit Costs | Year Ended September 30, United States Other Countries Total 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ $ $ $ $ $ $ $ $ Interest cost Expected return on plan assets Amortization of: Net (gains) losses Net prior service (benefit) cost - Settlement costs - - - - - - - Curtailment (benefits) - - - - - - Net periodic (benefit) cost $ $ $ $ $ $ $ $ $ |
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | At or for the Year Ended September 30, United States Other Countries Total 2015 2014 2015 2014 2015 2014 Changes in projected benefit obligation: Projected benefit obligation at beginning of year $ $ $ $ $ $ Service cost Interest cost Net actuarial losses Contribution by participants - Benefits paid Amounts paid by Company for Pension Protection Fund levy - - - - Plan amendments - - - - Settlements - - - - Curtailments - - - Foreign currency exchange rate changes - - Projected benefit obligation at end of year $ $ $ $ $ $ Changes in fair value of plan assets: Fair value of plan assets at beginning of year $ $ $ $ $ $ Actual return on plan assets Contributions by the company Contributions by plan participants - Benefits paid Settlements - - - - Foreign currency exchange rate changes - - Fair value of plan assets at end of year $ $ $ $ $ $ Net over/(under)funded status at end of year $ $ $ $ $ $ |
Schedule of Accumulated Benefit Obligations In Excess of and Less Than Fair Value of Plan Assets | Plans with accumulated benefit obligation in excess of plan assets Plans with accumulated benefit obligation less than plan assets At September 30, At September 30, 2015 2014 2015 2014 Projected benefit obligation $ $ $ $ Accumulated benefit obligation Fair value of plan assets |
Schedule of Amounts Recognized in Balance Sheet and Other Comprehensive Income (Loss) | At or for the Year Ended September 30, United States Other Countries Total 2015 2014 2015 2014 2015 2014 Amounts recognized in statement of financial position consist of: Other non-current assets $ - $ $ $ - $ $ Other non-current liabilities Net over/(under)funded status at end of year $ $ $ $ $ $ Amounts recognized in accumulated other comprehensive income consist of: Unrecognized net prior service cost $ $ $ - $ - $ $ Unrecognized net losses Total amounts recognized Deferred taxes Amounts recognized in accumulated other comprehensive income $ $ $ $ $ $ |
Schedule of Changes in Plan Assets and Benefit Obligations Recorded in Other Comprehensive Income (Loss) | Year Ended September 30, United States Other Countries Total 2015 2014 2015 2014 2015 2014 Net (gain) loss $ $ $ $ $ $ Prior service cost - - - - $ Loss due to settlement or curtailment arising during the period - - - Amortization of: Net losses Prior service benefit (cost) - Foreign currency exchange rate changes - - Total recorded in accumulated other comprehensive loss (income) $ $ $ $ $ $ |
Schedule of Amounts Expected to be Amortized from Accumulated Other Comprehensive Income (Loss) and Reported as a Component of Net Periodic Benefit Cost During the Next Fiscal Year | United States Other Countries Total Prior service cost $ $ - $ Net actuarial losses |
Schedule of Expected Benefit Payments | Year Ending September 30, United States Other Countries Total 2016 $ $ $ 2017 2018 2019 2020 2021 – 2025 |
Schedule of Allocation of Plan Assets, Actual and Target Allocations | At September 30, 2015 2014 Percentage of Plan Assets Target Allocation Ranges Percentage of Plan Assets Target Allocation Ranges United States: Asset Class Equity Securities 40.7% - 80.7% 40.7% - 80.7% Debt Securities 29.3% - 49.3% 29.3% - 49.3% Other 0.0% 0.0% United Kingdom: Asset Class Equity Securities 40.0% - 70.0% 40.0% - 70.0% Debt Securities 35.0% - 65.0% 35.0% - 65.0% Other 0.0% 0.0% Japan: Asset Class Equity Securities 36.0% - 44.0% 36.0% - 44.0% Debt Securities 55.0% - 63.0% 55.0% - 63.0% Other 0.0% - 2.0% 0.0% - 2.0% |
Schedule of Allocation of Plan Assets, Fair Value Hieracrchy | At September 30, 2015 Level 1 Level 2 Level 3 United States Other Countries United States Other Countries United States Other Countries Total Asset Category: Cash and cash equivalents $ $ $ - $ - $ - $ - $ Mutual funds: U.S. corporate bond fund - - - - - U.S. equity large cap fund - - - - - International equity large cap growth fund - - - - - Pooled funds: Japanese equity securities - - - - - International equity securities - - - - - Japanese fixed income securities - - - - - International fixed income securities - - - - - Index linked U.K. equity fund - - - - - Index linked international equity fund - - - - - Index linked U.K. corporate bonds fund - - - - - Index linked U.K. government securities fund - - - - - Index linked U.K. long-term government securities fund - - - - - Total assets $ $ $ - $ $ - $ - $ At September 30, 2014 Level 1 Level 2 Level 3 United States Other Countries United States Other Countries United States Other Countries Total Asset Category: Cash and cash equivalents $ $ $ - $ - $ - $ - $ Mutual funds: U.S. corporate bond fund - - - - - U.S. equity large cap fund - - - - - International equity large cap growth fund - - - - - Pooled funds: Japanese equity securities - - - - - International equity securities - - - - - Japanese fixed income securities - - - - - International fixed income securities - - - - - Global target return equity/bond fund - - - - - Index linked U.K. equity fund - - - - - Index linked international equity fund - - - - - Index linked U.K. corporate bonds fund - - - - - Index linked U.K. government securities fund - - - - - Index linked U.K. long-term government securities fund - - - - - Total assets $ $ $ - $ $ - $ - $ |
Multiemployer Plan [Member] | |
Schedule of Costs of Retirement Plans | Year Ended September 30, 2015 2014 2013 Company contributions $ $ $ |
Defined Contribution Plan [Member] | |
Schedule of Costs of Retirement Plans | Year Ended September 30, 2015 2014 2013 Company costs $ $ $ |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |
Schedule of Actuarial Assumptions Used | 2015 2014 2013 Weighted-average discount rate used to determine benefit obligation at September 30 % % % Weighted-average discount rate used to determine net periodic benefit cost for years ended September 30 |
Schedule of Net Periodic Benefit Costs | Year Ended September 30, 2015 2014 2013 Service cost $ $ $ Interest cost Amortization of: Net gains Net prior service benefit Net periodic cost $ $ $ |
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Year Ended September 30, 2015 2014 Changes in accumulated postretirement benefit obligation: Accumulated postretirement benefit obligation at beginning of year $ $ Service cost Interest cost Premiums paid by plan participants Net actuarial losses Benefits paid Foreign currency exchange rate changes Accumulated postretirement benefit obligation at end of year $ $ Changes in fair value of plan assets: Fair value of plan assets at beginning of year $ - $ - Contributions by the company Premiums paid by plan participants Benefits paid Fair value of plan assets at end of year $ - $ - Funded status at end of year $ $ |
Schedule of Amounts Recognized in Balance Sheet and Other Comprehensive Income (Loss) | Year Ended September 30, 2015 2014 Amounts recognized in statement of financial position consist of: Accrued liabilities $ $ Other non-current liabilities Funded status at end of year $ $ Amounts recognized in accumulated other comprehensive loss (income) consist of: Unrecognized net prior service benefit $ $ Unrecognized net (gains) losses Total amounts recognized Deferred taxes Amounts recognized in accumulated other comprehensive loss (income) $ $ |
Schedule of Changes in Plan Assets and Benefit Obligations Recorded in Other Comprehensive Income (Loss) | Year Ended September 30, 2015 2014 Net loss $ $ Amortization of: Net gains Prior service benefit Foreign currency exchange rate changes Total recorded in accumulated other comprehensive loss $ $ |
Schedule of Expected Benefit Payments | Year Ending September 30, 2016 $ 2017 2018 2019 2020 2021 – 2025 |
Schedule of Health Care Cost Trend Rates | 2015 2014 Health care cost trend rate assumed for next year % % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) % % Year that the rate reaches the ultimate trend rate |
Schedule of Health Care Costs Sensitivity | Change In Health Care Cost Trend Rate 1% increase 1% decrease Effect on projected fiscal year 2016 service and interest cost $ $ Effect on accumulated postretirement benefit obligation at September 30, 2015 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Dividends Declared and Paid | Year Ended September 30, 2015 2014 2013 Dividends declared and paid $ $ $ Dividend per share amount |
Stock-based Compensation Expense Recognized | Year Ended September 30, 2015 2014 2013 Employee stock-based compensation expense $ $ $ |
Stock Options [Member] | |
Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards | Year Ended September 30, 2015 2014 2013 Expected term (years) 6.2 - 8.8 5.8 - 8.6 5.8 - 8.6 Estimated volatility 36.5% 38.5% 48.7% - 54.9% Estimated dividend yield 0.7% 0.8% 0.8% - 1.0% Risk-free interest rate 2.0% - 2.3% 1.7% - 2.5% 0.8% - 1.3% |
Weighted Average Grant Date Fair Value of Options Granted | Year Ended September 30, 2015 2014 2013 Weighted-average grant date fair value of options $ $ $ |
Activity for Stock Option Awards | Number Weighted-Average Exercise Price Balance at September 30, 2014 $ Options granted Options exercised Options forfeited Balance at September 30, 2015 |
Changes in Nonvested Stock Options | Number Weighted-Average Exercise Price Balance at September 30, 2014 $ Options granted Options vested Options forfeited Balance at September 30, 2015 |
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 4,641 $ 5.7 $ Options vested and exercisable 2,917 4.3 Options vested and expected to vest 4,564 5.6 |
Other Stock Option Information | Year Ended September 30, 2015 2014 2013 Total fair value of stock options vested $ $ $ Total intrinsic value of options exercised Cash received from exercises of stock options Excess tax benefit realized from exercise of stock options |
Restricted Stock Award [Member] | |
Activity for Stock Option Awards | Number Fair Value per Share Balance at September 30, 2014 $ Shares granted - n/a Shares vested - n/a Shares forfeited - n/a Balance at September 30, 2015 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure | |
Future Minimum Rental Payments | Year Ending September 30, 2016 $ 2017 2018 2019 2020 Thereafter Total $ |
Rent Expense for All Operating Leases | Year Ended September 30, 2015 2014 2013 Rent expense $ $ $ |
Future Minimum Unconditional Purchase Obligations | Year Ending September 30, 2016 $ 2017 2018 - 2019 - 2020 - Thereafter - Total $ |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Consolidated Net Sales and Earnings by Segment | Year Ended September 30, 2015 2014 2013 Segment external net sales: Aerospace $ $ $ Energy Total consolidated net sales $ $ $ Segment earnings: Aerospace $ $ $ Energy Total segment earnings Nonsegment expenses Interest expense, net Consolidated earnings before income taxes $ $ $ |
Consolidated Total Assets, Depreciation and Amortization, and Capital Expenditures by Segment | Year Ended September 30, 2015 2014 2013 Segment assets: Aerospace $ $ $ Energy Total segment assets Unallocated corporate property, plant and equipment, net Other unallocated assets Consolidated total assets $ $ $ Segment depreciation and amortization: Aerospace $ $ $ Energy Total segment depreciation and amortization Unallocated corporate amounts Consolidated depreciation and amortization $ $ $ Segment capital expenditures: Aerospace $ $ $ Energy Total segment capital expenditures Unallocated corporate amounts Consolidated capital expenditures $ $ $ |
External Net Sales by Geographical Area | Year Ended September 30, 2015 2014 2013 United States $ $ $ Europe (1) Asia Other countries Consolidated net sales $ $ $ |
Property, Plant, and Equipment - Net by Geographical Area | At September 30, 2015 2014 United States $ $ Germany Other countries Consolidated property, plant and equipment, net $ $ |
U.S. Government Related [Member] | |
U.S. Government Related Sales by Segment | Direct U.S. Government Sales Indirect U.S. Government Sales Total U.S. Government Related Sales Fiscal year ended September 30, 2015 Aerospace $ $ $ Energy Total net external sales $ $ $ Percentage of total net sales Fiscal year ended September 30, 2014 Aerospace $ $ $ Energy Total net external sales $ $ $ Percentage of total net sales Fiscal year ended September 30, 2013 Aerospace $ $ $ Energy Total net external sales $ $ $ Percentage of total net sales |
Supplemental Quarterly Financ50
Supplemental Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Member] | |
Quarterly Financial Information | 2015 Fiscal Quarters First Second Third Fourth Segment external net sales: Aerospace $ $ $ $ Energy Total $ $ $ $ Segment earnings: Aerospace $ $ $ $ Energy Total $ $ $ $ Earnings reconciliation: Total segment earnings $ $ $ $ Nonsegment expenses Interest expense, net Consolidated earnings before income taxes $ $ $ $ 2014 Fiscal Quarters First Second Third Fourth Segment external net sales: Aerospace $ $ $ $ Energy Total $ $ $ $ Segment earnings: Aerospace $ $ $ $ Energy Total $ $ $ $ Earnings reconciliation: Total segment earnings $ $ $ $ Nonsegment expenses Interest expense, net Consolidated earnings before income taxes $ $ $ $ |
Total of Reporting Segments [Member] | |
Quarterly Financial Information | 2015 Fiscal Quarters First Second Third Fourth Net sales $ $ $ $ Gross margin (1) Earnings before income taxes Net earnings Earnings per share Basic earnings per share Diluted earnings per share Cash dividends per share 2014 Fiscal Quarters First Second Third Fourth Net sales $ $ $ $ Gross margin (1) Earnings before income taxes Net earnings Earnings per share Basic earnings per share Diluted earnings per share Cash dividends per share |
Schedule II (Tables)
Schedule II (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Valuation and Qualifying Accounts | |
Schedule II | Column A Column B Column C Column D Column E Additions Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts (a) Deductions (b) Balance at End of Year Fiscal year 2015 Allowance for doubtful accounts $ $ $ $ $ Deferred tax asset valuation allowance - Fiscal year 2014 Allowance for doubtful accounts Deferred tax asset valuation allowance - Fiscal year 2013 Allowance for doubtful accounts Deferred tax asset valuation allowance - - |
Operations and summary of sig52
Operations and summary of significant accounting policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Basis of Presentation | ||||
Selling, general, and administrative expenses include net foreign currency transaction gains (losses) | $ (1,721) | $ (1,089) | $ (2,738) | |
Goodwill, Impairment Loss | 0 | 0 | 0 | |
Asset Impairment Charges | $ 3,138 | $ 0 | $ 3,138 | $ 0 |
Operations and summary of sig53
Operations and summary of significant accounting policies (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Accounts receivable | $ 322,215 | $ 346,858 |
Allowance for uncollectible customer amounts | (3,841) | (7,078) |
Trade Accounts Receivable [Member] | ||
Accounts Receivable, Gross | 323,137 | 291,584 |
Accounts Receivable from Chinese Financial Institution [Member] | ||
Accounts Receivable, Gross | $ 2,919 | $ 62,352 |
Operations and summary of sig54
Operations and summary of significant accounting policies (Schedule of property, plant, and equipment useful lives) (Details) | 12 Months Ended |
Sep. 30, 2015 | |
Enterprise Resource Planning system [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Minimum [Member] | Land Improvements [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Minimum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Minimum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment, Useful Life | 1 year |
Minimum [Member] | Machinery and Production Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Minimum [Member] | Computer Equipment and Software [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Minimum [Member] | Office furniture and equipment [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Minimum [Member] | Other Capitalized Property Plant and Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | Land Improvements [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Maximum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Maximum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Maximum [Member] | Machinery and Production Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 15 years |
Maximum [Member] | Computer Equipment and Software [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Maximum [Member] | Office furniture and equipment [Member] | |
Property, Plant and Equipment, Useful Life | 13 years |
Maximum [Member] | Other Capitalized Property Plant and Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 13 years |
Operations and summary of sig55
Operations and summary of significant accounting policies (Schedule of finite-lived intangible assets useful lives) (Details) | 12 Months Ended |
Sep. 30, 2015 | |
Minimum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Asset, Useful Life | 9 years |
Minimum [Member] | Intellectual Property [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Minimum [Member] | Process Technology [Member] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Minimum [Member] | Other Intangibles [Member] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Maximum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Maximum [Member] | Intellectual Property [Member] | |
Finite-Lived Intangible Asset, Useful Life | 17 years |
Maximum [Member] | Process Technology [Member] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Maximum [Member] | Other Intangibles [Member] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Recent Accounting Pronouncements | ||
Balance of unamortized debt issuance costs | $ 5,521 | $ 4,276 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Payments for Repurchase of Common Stock | $ 157,160 | $ 141,488 | $ 45,754 | ||
Purchases of treasury stock, shares | 458 | 2,048 | |||
Goldman Sachs Accelerated Share Repurchase Program [Member] | |||||
Accelerated Share Repurchase Program, Execution Date | Jun. 2, 2015 | ||||
Accelerated Share Repurchase Program, Completion Date | Sep. 3, 2015 | ||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 49.89 | ||||
Payments for Repurchase of Common Stock | $ 125,000 | ||||
Dilutive effect of Accelerated Stock Repurchase shares | 2,506 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share | |||||||||||
Net earnings | $ 50,060 | $ 43,753 | $ 43,855 | $ 43,784 | $ 51,662 | $ 46,001 | $ 44,798 | $ 23,383 | $ 181,452 | $ 165,844 | $ 145,942 |
Basic shares outstanding | 64,684 | 66,432 | 68,392 | ||||||||
Dilutive effect of stock options and restricted stock | 1,372 | 1,344 | 1,210 | ||||||||
Diluted shares outstanding | 66,056 | 67,776 | 69,602 | ||||||||
Basic earnings per share | $ 0.79 | $ 0.68 | $ 0.67 | $ 0.67 | $ 0.79 | $ 0.70 | $ 0.67 | $ 0.35 | $ 2.81 | $ 2.50 | $ 2.13 |
Diluted earnings per share | $ 0.77 | $ 0.66 | $ 0.66 | $ 0.66 | $ 0.77 | $ 0.69 | $ 0.66 | $ 0.34 | $ 2.75 | $ 2.45 | $ 2.10 |
Earnings Per Share (Anti-diluti
Earnings Per Share (Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share | |||
Options | 697 | 12 | 44 |
Weighted-average option price | $ 46.55 | $ 44.04 | $ 40.21 |
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) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share | |||
Weighted-average treasury stock shares held for deferred compensation obligations | 190 | 216 | 256 |
Joint Ventures (Narrative) (Det
Joint Ventures (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Proceeds from Sale of Productive Assets | $ 2,529 | $ 1,277 | $ 418 |
Woodward and General Electric Joint Venture [Member] | |||
Agreement to Form Joint Venture, Execution Date | May 20, 2015 | ||
Woodward and General Electric Joint Venture [Member] | Scenario, Forecast [Member] | |||
Proceeds from Sale of Productive Assets | $ 250,000 | ||
Proceeds from Sale of Productive Assets, Annual Payments | $ 4,900 | ||
Equity Method Investment, Ownership Percentage | 50.00% |
Business Acquisitions (Narrativ
Business Acquisitions (Narrative) (Details) - Business Acquisition, Acquiree - Duarte Business [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 28, 2012 | |
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 | $ 0 | $ 1,944 | |||
Net Sales | $ 145,998 | $ 111,261 |
Business Acquisitions (Schedule
Business Acquisitions (Schedule of Purchase Price) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Total purchase price | $ 0 | $ 0 | $ 198,860 | |
Business Acquisition, Acquiree - Duarte Business [Member] | ||||
Cash paid to seller | $ 198,900 | |||
Less cash acquired | (40) | |||
Total purchase price | $ 198,860 |
Business Acquisitions (Schedu64
Business Acquisitions (Schedule of Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 28, 2012 |
Goodwill | $ 556,977 | $ 559,724 | $ 561,458 | |
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 | 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 (Schedu65
Business Acquisitions (Schedule of Finite-Lived Intangible Assets Acquired) (Details) - Business Acquisition, Acquiree - Duarte Business [Member] - USD ($) $ in Thousands | 3 Months Ended | |
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 (Schedu66
Business Acquisitions (Schedule of Finite-Lived Intangible Assets Acquired, Future Amortization Expense) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 28, 2012 |
2,014 | $ 27,507 | ||
2,017 | 25,801 | ||
2,018 | 24,978 | ||
2,019 | 23,142 | ||
2,020 | 20,359 | ||
Thereafter | 103,351 | ||
Finite-Lived Intangible Assets, Net, Total | $ 225,138 | $ 254,772 | |
Business Acquisition, Acquiree - Duarte Business [Member] | |||
Acquired Finite-lived Intangible Asset, Amount | $ 89,700 | ||
Total amount of acquired intangible assets | $ 89,700 |
Business Acquisitions (Schedu67
Business Acquisitions (Schedule of Results of Operations of Acquired Entity Since Acquisition Date) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Business Acquisition, Acquiree - Duarte Business [Member] | ||
Net sales | $ 145,998 | $ 111,261 |
Business Acquisitions (Schedu68
Business Acquisitions (Schedule of Unaudited Pro Forma Results) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net sales | $ 562,625 | $ 494,810 | $ 493,222 | $ 487,646 | $ 565,447 | $ 524,284 | $ 482,467 | $ 429,042 | $ 2,038,303 | $ 2,001,240 | $ 1,935,976 |
Net earnings | $ 50,060 | $ 43,753 | $ 43,855 | $ 43,784 | $ 51,662 | $ 46,001 | $ 44,798 | $ 23,383 | $ 181,452 | $ 165,844 | $ 145,942 |
Basic earnings per share | $ 0.79 | $ 0.68 | $ 0.67 | $ 0.67 | $ 0.79 | $ 0.70 | $ 0.67 | $ 0.35 | $ 2.81 | $ 2.50 | $ 2.13 |
Diluted earnings per share | $ 0.77 | $ 0.66 | $ 0.66 | $ 0.66 | $ 0.77 | $ 0.69 | $ 0.66 | $ 0.34 | $ 2.75 | $ 2.45 | $ 2.10 |
Business Acquisition, Acquiree - Duarte Business [Member] | |||||||||||
Net sales | $ 1,935,976 | ||||||||||
Net earnings | $ 145,942 | ||||||||||
Basic earnings per share | $ 2.13 | ||||||||||
Diluted earnings per share | $ 2.10 | ||||||||||
Pro forma | |||||||||||
Net sales | $ 1,966,376 | ||||||||||
Net earnings | $ 152,431 | ||||||||||
Basic earnings per share | $ 2.23 | ||||||||||
Diluted earnings per share | $ 2.19 |
Financial Instruments and Fai69
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Financial liability on recurring basis | $ 0 | $ 0 |
Long Term Note Receivable From Municipality Within The State Of Illinois [Member] | ||
Interest rate used to estimate fair value | 3.00% | 3.20% |
Long Term Note Receivable From Municipality Within The State Of Colorado [Member] | ||
Interest rate used to estimate fair value | 3.00% | 3.20% |
Borrowings [Member] | ||
Interest rate used to estimate fair value | 2.80% | 2.40% |
Financial Instruments and Fai70
Financial Instruments and Fair Value Measurements (Financial Assets that are Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Total financial assets | $ 92,085 | $ 124,932 |
Fair Value, Inputs, Level 1 [Member] | ||
Total financial assets | 92,085 | 124,932 |
Fair Value, Inputs, Level 2 [Member] | ||
Total financial assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Total financial assets | 0 | 0 |
Cash [Member] | ||
Cash and cash equivalents | 79,517 | 92,590 |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 79,517 | 92,590 |
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 | 20 | 11,210 |
Investments in Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 20 | 11,210 |
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 | 2,665 | 11,487 |
Investments in Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 2,665 | 11,487 |
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 |
Equity Securities [Member] | ||
Equity securities | 9,883 | 9,645 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity securities | 9,883 | 9,645 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Equity securities | 0 | 0 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Equity securities | $ 0 | $ 0 |
Financial Instruments and Fai71
Financial Instruments and Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Notes receivable from municipalities, Carrying Cost | $ 15,638 | $ 15,228 |
Short-term borrowings, Carrying Cost | (2,430) | 0 |
Long-term debt, including current portion, Carrying Cost | (850,000) | (710,000) |
Fair Value, Inputs, Level 2 [Member] | ||
Notes receivable from municipalities, Estimated Fair Value | 16,112 | 15,988 |
Short-term borrowings, Estimated Fair Value | (2,430) | 0 |
Long-term debt, including current portion, Estimated Fair Value | $ (873,734) | $ (752,513) |
Derivative Instruments and He72
Derivative Instruments and Hedging Activities (Narrative) (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013USD ($) | Jun. 30, 2015CNY (¥) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2013USD ($) | |
Net unrecognized losses on terminated derivative instruments expected to be reclassified to earnings | $ 21 | |||||
Term of gain or loss recognition in interest expense on terminated derivatives recorded in OCI | 12 months | |||||
Description of Net Investment Hedge Activity | In June 2015, Woodward designated an intercompany loan of 160,000 RMB between two wholly owned subsidiaries as a hedge of a foreign currency exposure of the net investment of the borrower in the lender. An unrealized foreign exchange gain on the loan of $572 is included in foreign currency translation adjustments within total comprehensive earnings for the fiscal year ended September 30, 2015. | |||||
Gain on foreign currency transaction designated as a hedge of a net investment in a foreign subsidiary | $ 572 | $ 0 | $ 0 | |||
Intercompany Loan [Member] | ||||||
Gain on foreign currency transaction designated as a hedge of a net investment in a foreign subsidiary | $ 572 | |||||
Value of Net Investment Hedging Instruments Used | ¥ | ¥ 160,000 | |||||
Derivatives in Cash Flow Hedging Relationships [Member] | ||||||
Term of gain or loss recognition in interest expense on terminated derivatives recorded in OCI | 7 years | |||||
Derivative, Notional Amount | $ 25,000 | |||||
Interest Expense [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ||||||
Amount of Gain/Loss Recognized in Accumulated OCI on Derivative | $ 507 | $ 0 | 0 | $ (507) | ||
Total Accumulated Other Comprehensive (Loss) Earnings [Member] | ||||||
Unrecognized gains (loss) | $ 269 | $ 170 |
Derivative Instruments and He73
Derivative Instruments and Hedging Activities (Impact of Derivative Instruments on Earnings) (Details) - Interest Expense [Member] - Derivatives in Cash Flow Hedging Relationships [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Amount of (Income) Expense Recognized in Earnings on Derivative | $ 99 | $ 99 | $ 171 | |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | $ (507) | 0 | 0 | 507 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ 99 | $ 99 | $ 171 |
Supplemental Statements of Ca74
Supplemental Statements of Cash Flows Information (Schedule of Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Supplemental Statements of Cash Flows Information | |||
Interest paid, net of amounts capitalized | $ 32,608 | $ 27,922 | $ 26,627 |
Income taxes paid | 51,218 | 66,477 | 52,355 |
Income tax refunds received | 689 | 2,303 | 6,336 |
Purchases of property, plant and equipment on account | 23,966 | 13,437 | 5,345 |
Common shares issued from treasury to settle benefit plan obligations (Note 18) | 12,574 | 11,193 | 9,780 |
Notes receivable from municipalities for economic development incentives | 0 | 6,596 | 8,114 |
Cashless exercise of stock options | 1,532 | 1,286 | 2,645 |
Settlement of receivable through cashless acquisition of treasury shares in connection with the cashless exercise of stock options | $ 1,602 | $ 1,736 | $ 3,447 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Inventories | ||
Raw Materials | $ 63,896 | $ 60,442 |
Work in progress | 91,501 | 93,836 |
Component Parts | 248,047 | 247,299 |
Finished Goods | 44,220 | 50,367 |
Inventory, net | $ 447,664 | $ 451,944 |
Property, Plant, and Equipmen76
Property, Plant, and Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Construction in progress | $ 223,958 | $ 252,763 | $ 223,958 | |
Property, Plant and Equipment, Net | 513,279 | 756,100 | 513,279 | |
Asset Impairment Charges | 3,138 | 0 | 3,138 | $ 0 |
Second Campus Rockford Illinois [Member] | ||||
Construction in progress | 85,283 | 47,629 | 85,283 | |
Capitalized interest | 2,963 | 499 | 2,963 | |
New Campus Fort Collins Colorado [Member] | ||||
Construction in progress | 37,268 | 151,669 | 37,268 | |
Capitalized interest | 2,392 | 5,205 | 2,392 | |
Building Site Niles Illinois [Member] | ||||
Construction in progress | 55,629 | 0 | 55,629 | |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||
Property, Plant and Equipment, Net | $ 2,465 | 681 | $ 2,465 | |
Building and Building Improvements [Member] | Second Campus Rockford Illinois [Member] | ||||
Contruction in progress placed into service | 120,000 | |||
Buildings and improvements and Office furniture and equipment [Member] | Building Site Niles Illinois [Member] | ||||
Contruction in progress placed into service | $ 77,000 |
Property, Plant, and Equipmen77
Property, Plant, and Equipment, Net (Property, Plant, and Equipment - Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant, and Equipment, Net | |||
Land and Land Improvements | $ 79,311 | $ 66,303 | |
Buildings and improvements | 372,160 | 197,587 | |
Leasehold improvements | 16,907 | 20,026 | |
Machinery and production equipment | 365,040 | 326,403 | |
Computer equipment and software | 118,154 | 103,852 | |
Office furniture and equipment | 20,939 | 20,992 | |
Other | 18,325 | 18,839 | |
Construction in progress | 252,763 | 223,958 | |
Property, Plant and Equipment, Gross, Total | 1,243,599 | 977,960 | |
Less accumulated depreciation | (487,499) | (464,681) | |
Property, Plant and Equipment, Net, Total | 756,100 | 513,279 | |
Depreciation expense | 45,994 | 43,773 | $ 37,254 |
Capitalized interest | $ 8,995 | $ 7,282 | $ 1,215 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Impairment | $ 0 | $ 0 | $ 0 | |
Assumed annual compound growth rate after five or ten years | 4.03% | |||
Minimum [Member] | ||||
Weighted average cost of capital assumption | 9.49% | |||
Maximum [Member] | ||||
Weighted average cost of capital assumption | 12.83% |
Goodwill (Goodwill) (Details)
Goodwill (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill, Beginning Balance | $ 559,724 | $ 561,458 |
Effects of Currency Translation | (2,747) | (1,734) |
Goodwill, Ending Balance | 556,977 | 559,724 |
Aerospace [Member] | ||
Goodwill, Beginning Balance | 455,423 | 455,107 |
Effects of Currency Translation | 0 | 316 |
Goodwill, Ending Balance | 455,423 | 455,423 |
Energy [Member] | ||
Goodwill, Beginning Balance | 104,301 | 106,351 |
Effects of Currency Translation | (2,747) | (2,050) |
Goodwill, Ending Balance | $ 101,554 | $ 104,301 |
Intangible Assets, Net (Schedul
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Gross Carrying Value | $ 445,256 | $ 454,187 | |
Accumulated Amortization | (220,118) | (199,415) | |
Net Carrying Amount | 225,138 | 254,772 | |
Amortization expense | 29,241 | 33,580 | $ 36,979 |
Process Technology [Member] | |||
Gross Carrying Value | 99,529 | 99,683 | |
Accumulated Amortization | (52,032) | (44,860) | |
Net Carrying Amount | 47,497 | 54,823 | |
Customer Relationships [Member] | |||
Gross Carrying Value | 323,634 | 323,931 | |
Accumulated Amortization | (149,123) | (129,313) | |
Net Carrying Amount | 174,511 | 194,618 | |
Intellectual Property [Member] | |||
Gross Carrying Value | 19,445 | 19,954 | |
Accumulated Amortization | (16,921) | (15,938) | |
Net Carrying Amount | 2,524 | 4,016 | |
Other Intangibles [Member] | |||
Gross Carrying Value | 2,648 | 10,619 | |
Accumulated Amortization | (2,042) | (9,304) | |
Net Carrying Amount | 606 | 1,315 | |
Aerospace [Member] | |||
Gross Carrying Value | 360,230 | 367,930 | |
Accumulated Amortization | (154,943) | (137,465) | |
Net Carrying Amount | 205,287 | 230,465 | |
Aerospace [Member] | Process Technology [Member] | |||
Gross Carrying Value | 76,605 | 76,605 | |
Accumulated Amortization | (37,411) | (31,719) | |
Net Carrying Amount | 39,194 | 44,886 | |
Aerospace [Member] | Customer Relationships [Member] | |||
Gross Carrying Value | 282,225 | 282,225 | |
Accumulated Amortization | (116,232) | (97,281) | |
Net Carrying Amount | 165,993 | 184,944 | |
Aerospace [Member] | Intellectual Property [Member] | |||
Gross Carrying Value | 0 | 0 | |
Accumulated Amortization | 0 | 0 | |
Net Carrying Amount | 0 | 0 | |
Aerospace [Member] | Other Intangibles [Member] | |||
Gross Carrying Value | 1,400 | 9,100 | |
Accumulated Amortization | (1,300) | (8,465) | |
Net Carrying Amount | 100 | 635 | |
Energy [Member] | |||
Gross Carrying Value | 85,026 | 86,257 | |
Accumulated Amortization | (65,175) | (61,950) | |
Net Carrying Amount | 19,851 | 24,307 | |
Energy [Member] | Process Technology [Member] | |||
Gross Carrying Value | 22,924 | 23,078 | |
Accumulated Amortization | (14,621) | (13,141) | |
Net Carrying Amount | 8,303 | 9,937 | |
Energy [Member] | Customer Relationships [Member] | |||
Gross Carrying Value | 41,409 | 41,706 | |
Accumulated Amortization | (32,891) | (32,032) | |
Net Carrying Amount | 8,518 | 9,674 | |
Energy [Member] | Intellectual Property [Member] | |||
Gross Carrying Value | 19,445 | 19,954 | |
Accumulated Amortization | (16,921) | (15,938) | |
Net Carrying Amount | 2,524 | 4,016 | |
Energy [Member] | Other Intangibles [Member] | |||
Gross Carrying Value | 1,248 | 1,519 | |
Accumulated Amortization | (742) | (839) | |
Net Carrying Amount | $ 506 | $ 680 |
Intangible Assets, Net (Sched81
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Intangible Assets, Net | ||
2,016 | $ 27,507 | |
2,017 | 25,801 | |
2,018 | 24,978 | |
2,019 | 23,142 | |
2,020 | 20,359 | |
Thereafter | 103,351 | |
Finite-Lived Intangible Assets, Net, Total | $ 225,138 | $ 254,772 |
Credit Facilities, Short-term82
Credit Facilities, Short-term Borrowings (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Maximum borrowing capacity | $ 1,048,808 | ||
Debt Covenant, Leverage Ratio, Maximum | 3.5 to 1.0 | ||
Accelerated amortization of debt financing costs recognized as interest expense | $ 1,114 | $ 1,014 | $ 1,045 |
Outstanding borrowings | 352,430 | ||
Short-term borrowings | 2,430 | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | 687,758 | ||
Additional borrowing availability | 687,758 | ||
Long-term debt, excluding current portion | 850,000 | 710,000 | |
Amortization of Financing Costs | 1,114 | $ 1,014 | $ 1,045 |
Other Foreign Short-term Borrowings [Member] | |||
Outstanding borrowings | 0 | ||
Foreign Performance Guarantee Facilities [Member] | |||
Maximum borrowing capacity | 8,619 | ||
Outstanding borrowings | 0 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 8,276 | ||
Additional borrowing availability | 8,276 | ||
Foreign Lines of Credit And Overdraft Facilities [Member] | |||
Maximum borrowing capacity | 40,189 | ||
Outstanding borrowings | 2,430 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 37,759 | ||
Additional borrowing availability | 37,759 | ||
Revolving Credit Facility [Member] | |||
Maximum borrowing capacity | 1,000,000 | ||
Outstanding borrowings | 350,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 641,723 | ||
Additional borrowing availability | $ 641,723 | ||
Revolving Credit Facility [Member] | Minimum [Member] | |||
Basis Spread On Variable Rate | 0.85% | ||
The Notes [Member] | |||
Debt Covenant, Minimum Consolidated Net Worth Calculation, Base Value | $ 800,000 | ||
Debt Covenant, Minimum Consolidated Net Worth Calculation, Percentage of Net Income | 50.00% | ||
Debt Covenant, Leverage Ratio During Material Acquisition Period, Maximum | 4.0 to 1.0 | ||
Amended Revolving Credit Agreement [Member] | |||
Variable Rate Basis | LIBOR |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Debt Covenant, Leverage Ratio, Maximum | 3.5 to 1.0 | |||
Debt financing costs | $ 2,359 | $ 1,297 | $ 1,651 | |
Amortization of debt financing costs recognized as interest expense | 1,114 | 1,014 | $ 1,045 | |
Balance of unamortized debt issuance costs | 5,521 | 4,276 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,048,808 | |||
Outstanding borrowings | 352,430 | |||
The Notes [Member] | ||||
Debt Covenant, Minimum Consolidated Net Worth Calculation, Base Value | $ 800,000 | |||
Debt Covenant, Minimum Consolidated Net Worth Calculation, Percentage of Net Income | 50.00% | |||
Debt Covenant, Calculations, Period Of Time | rolling four quarter basis | |||
Cross default provisions related to the Company’s 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 | |||
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 | |||
Non Floating Rate Notes [Member] | ||||
Prepayment, Make-Whole Amount Computation, Discount Rate Basis Points | 50 | |||
Debt Instrument Prepayment Make Whole Amount Computation | 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 | |||
2008 Note Purchase Agreement [Member] | ||||
Issuance Date | Oct. 1, 2008 | |||
2009 Note Purchase Agreement [Member] | ||||
Issuance Date | Apr. 1, 2009 | |||
2013 Note Purchase Agreement [Member] | ||||
Issuance Date | Oct. 1, 2013 | |||
Face Amount | $ 250,000 | |||
Debt financing costs | $ 1,297 | |||
Floating Rate Notes [Member] | ||||
Debt Instrument Prepayment Make Whole Amount Computation | 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. | |||
Series J Notes [Member] | ||||
Variable interest rate | 1.58% | |||
First Closing Notes [Member] | ||||
Issuance Date | Oct. 1, 2013 | |||
Second Closing Notes [Member] | ||||
Issuance Date | Nov. 15, 2013 | |||
Other Foreign Short-term Borrowings [Member] | ||||
Outstanding borrowings | $ 0 | |||
Foreign Performance Guarantee Facilities [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 8,619 | |||
Outstanding borrowings | 0 | |||
Foreign Lines of Credit And Overdraft Facilities [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 40,189 | |||
Outstanding borrowings | 2,430 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | |||
Outstanding borrowings | $ 350,000 | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Basis Spread On Variable Rate | 0.85% | |||
Chinese Credit Facility [Member] | ||||
Line of Credit Facility, Expiration Date | Sep. 1, 2016 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 22,700 | 22,700 | ||
Outstanding borrowings | $ 0 | |||
Chinese Credit Facility, RMB Denominated Loan [Member] | ||||
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 15% of that prevailing rate | |||
Chinese Credit Facility, USD Denominated Loan [Member] | ||||
Variable Rate Basis | interest at the lender's cost of borrowing rate at the date of borrowing, plus 3% | |||
Revolving Credit Agreement [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 600,000 | |||
Outstanding borrowings | $ 210,000 | |||
Credit facility effective interest rate on outstanding borrowing | 1.21% | |||
Amended Revolving Credit Agreement [Member] | ||||
Debt Covenant, Leverage Ratio, Maximum | 3.5 to 1.0 | |||
Debt Covenant, Minimum Consolidated Net Worth Calculation, Base Value | $ 800,000 | |||
Debt Covenant, Minimum Consolidated Net Worth Calculation, Percentage of Net Income | 50.00% | |||
Debt Covenant, Minimum Consolidated Net Worth Calculation, Percentage of Net Proceeds of Issuance of Capital Stock | 50.00% | |||
Debt Covenant, Leverage Ratio During Material Acquisition Period, Maximum | 4.0 to 1.0 | |||
Line of Credit Facility, Initiation Date | Apr. 28, 2015 | |||
Line of Credit Facility, Expiration Date | Apr. 28, 2020 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | |||
Outstanding borrowings | $ 350,000 | |||
Credit facility effective interest rate on outstanding borrowing | 1.44% | |||
Amended Revolving Credit Agreement [Member] | Minimum [Member] | ||||
Basis Spread On Variable Rate | 0.85% | |||
Amended Revolving Credit Agreement [Member] | Maximum [Member] | ||||
Basis Spread On Variable Rate | 1.65% |
Credit Facilities and Short-ter
Credit Facilities and Short-term Borrowings (Short-term Borrowings and Availability Under Various Short-term Credit Facilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Total availability | $ 1,048,808 | |
Outstanding letters of credit and guarantees | (8,620) | |
Outstanding borrowings | (352,430) | |
Remaining availability | 687,758 | |
Other Foreign Short-term Borrowings [Member] | ||
Outstanding borrowings | 0 | |
Foreign Performance Guarantee Facilities [Member] | ||
Total availability | 8,619 | |
Outstanding letters of credit and guarantees | (343) | |
Outstanding borrowings | 0 | |
Remaining availability | 8,276 | |
Foreign Lines of Credit And Overdraft Facilities [Member] | ||
Total availability | 40,189 | |
Outstanding letters of credit and guarantees | 0 | |
Outstanding borrowings | (2,430) | |
Remaining availability | 37,759 | |
Revolving Credit Facility [Member] | ||
Total availability | 1,000,000 | |
Outstanding letters of credit and guarantees | (8,277) | |
Outstanding borrowings | (350,000) | |
Remaining availability | 641,723 | |
Chinese Credit Facility [Member] | ||
Total availability | 22,700 | $ 22,700 |
Outstanding borrowings | $ 0 |
Long-term Debt (Schedule of Lon
Long-term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Long-term debt balance | $ 500,000 | |
Short-term Debt | 2,430 | $ 0 |
Long-term debt, excluding current portion | 850,000 | 710,000 |
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 | Oct. 1, 2015 | Oct. 1, 2015 |
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 | Oct. 1, 2018 | Oct. 1, 2018 |
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 | Apr. 3, 2016 | Apr. 3, 2016 |
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 | Apr. 3, 2019 | Apr. 3, 2019 |
Series J Notes [Member] | ||
Variable interest rate | 1.58% | |
Series J Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 50,000 | $ 50,000 |
Basis Spread On Variable Rate | 1.25% | 1.25% |
Maturity date | Nov. 15, 2020 | Nov. 15, 2020 |
Series G Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 50,000 | $ 50,000 |
Interest rate | 3.42% | 3.42% |
Maturity date | Nov. 15, 2020 | Nov. 15, 2020 |
Series H Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 25,000 | $ 25,000 |
Interest rate | 4.03% | 4.03% |
Maturity date | Nov. 15, 2023 | Nov. 15, 2023 |
Series I Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 25,000 | $ 25,000 |
Interest rate | 4.18% | 4.18% |
Maturity date | Nov. 15, 2025 | Nov. 15, 2025 |
Series K Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 50,000 | $ 50,000 |
Interest rate | 4.03% | 4.03% |
Maturity date | Nov. 15, 2023 | Nov. 15, 2023 |
Series L Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 50,000 | $ 50,000 |
Interest rate | 4.18% | 4.18% |
Maturity date | Nov. 15, 2025 | Nov. 15, 2025 |
Revolving Credit Facility [Member] | ||
Long-term debt balance | $ 350,000 | $ 210,000 |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Basis Spread On Variable Rate | 0.85% | |
Revolving Credit Agreement [Member] | ||
Credit facility effective interest rate on outstanding borrowing | 1.21% | |
Amended Revolving Credit Agreement [Member] | ||
Credit facility effective interest rate on outstanding borrowing | 1.44% | |
Maturity date | Apr. 1, 2020 | |
Amended Revolving Credit Agreement [Member] | Minimum [Member] | ||
Basis Spread On Variable Rate | 0.85% | |
Amended Revolving Credit Agreement [Member] | Maximum [Member] | ||
Basis Spread On Variable Rate | 1.65% | |
Chinese Credit Facility, RMB Denominated Loan [Member] | ||
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 15% of that prevailing rate | |
Chinese Credit Facility, USD Denominated Loan [Member] | ||
Variable Rate Basis | interest at the lender's cost of borrowing rate at the date of borrowing, plus 3% |
Long-term Debt (Schedule of Fut
Long-term Debt (Schedule of Future Principal Payments of Long-term Debt) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
2,016 | $ 107,000 |
2,017 | 0 |
2,018 | 0 |
2,019 | 143,000 |
2,020 | 0 |
Thereafter | 250,000 |
Long-term debt balance | $ 500,000 |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Accrued Liabilities | ||||
Salaries and other member benefits | $ 90,472 | $ 95,031 | ||
Warranties | 13,741 | 16,916 | $ 15,224 | $ 15,742 |
Interest payable | 12,526 | 12,487 | ||
Current portion of acquired performance obligations and unfavorable contracts | 6,651 | 16,432 | ||
Accrued retirement benefits | 2,481 | 2,286 | ||
Deferred revenues | 10,004 | 6,108 | ||
Taxes, other than income | 8,723 | 8,557 | ||
Other | 11,338 | 14,914 | ||
Accrued liabilities | $ 155,936 | $ 172,731 |
Accrued Liabilities (Warranties
Accrued Liabilities (Warranties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Accrued Liabilities | |||
Warranties, beginning of period | $ 16,916 | $ 15,224 | $ 15,742 |
Warranty Expense | 10,117 | 10,700 | 12,037 |
Increases due to acquisition of Duarte Business | 0 | 0 | 157 |
Reductions for settling warranties | (12,416) | (8,448) | (13,051) |
Foreign currency exchange rate changes | (876) | (560) | 339 |
Warranties, end of period | $ 13,741 | $ 16,916 | $ 15,224 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Other Liabilities | ||
Net accrued retirement benefits, less amounts recognized within accrued liabilities | $ 55,259 | $ 38,850 |
Total unrecognized tax benefits, net of offsetting adjustments | 15,394 | 14,707 |
Acquired performance obligations and unfavorable contracts | 4,656 | 12,792 |
Deferred economic incentives | 19,163 | 18,408 |
Other | 21,718 | 16,454 |
Other liabilities | $ 116,190 | $ 101,211 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Other (Income) Expense, Net | |||
Net (gain) loss on sales of assets | $ (626) | $ 166 | $ (100) |
Rent income | (485) | (565) | (555) |
Net (gain) loss on investments in deferred compensation program | 33 | (794) | (946) |
Other | (84) | (107) | (21) |
Other (income) expense, net | $ (1,162) | $ (1,300) | $ (1,622) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net operating loss deferred tax asset | $ 6,537 | $ 5,552 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 6,537 | 5,552 | ||
Undistributed foreign earnings for which Woodward has not provided for taxes | 318,744 | |||
Estimated decrease in liability for unrecognized tax benefits | 4,393 | |||
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 10,494 | 12,807 | ||
Accrued interest and penalties | 859 | 1,158 | ||
Unrecognized Tax Benefits | 21,469 | 22,687 | $ 22,694 | $ 18,069 |
Allowance for Trade Receivables [Member] | ||||
Reversal of valuation allowance | 4,088 | 3,993 | 1,758 | |
Valuation Allowance of Deferred Tax Assets [Member] | ||||
Reversal of valuation allowance | $ 2,891 | $ 2,568 | $ 0 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Current: | |||
Federal | $ 23,923 | $ 48,327 | $ 29,438 |
State | 3,108 | 5,752 | 4,760 |
Foreign | 18,343 | 16,594 | 10,612 |
Deferred: | |||
Federal | 19,236 | (4,378) | 13,904 |
State | 751 | (2,966) | 885 |
Foreign | (5,864) | (1,929) | (5,970) |
Income tax expense | $ 59,497 | $ 61,400 | $ 53,629 |
Income Taxes (Earings Before In
Income Taxes (Earings Before Income Taxes by Geographical Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes | |||||||||||
United States | $ 172,315 | $ 148,837 | $ 148,604 | ||||||||
Other countries | 68,634 | 78,407 | 50,967 | ||||||||
Consolidated earnings before income taxes | $ 68,727 | $ 57,559 | $ 57,591 | $ 57,072 | $ 75,076 | $ 62,468 | $ 56,756 | $ 32,944 | $ 240,949 | $ 227,244 | $ 199,571 |
Income Taxes (Composition of De
Income Taxes (Composition of Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Deferred tax assets: | ||
Defined benefit plans, other postretirement | $ 12,878 | $ 10,762 |
Foreign net operating loss carryforwards | 6,537 | 5,552 |
Inventory | 21,651 | 21,608 |
Deferred and stock-based compensation | 31,310 | 24,987 |
Defined benefit pension | 4,217 | 227 |
Other reserves | 9,289 | 10,513 |
Credits and incentives | 9,162 | 8,178 |
Other | 5,963 | 11,422 |
Valuation allowance | (6,804) | (9,486) |
Total deferred tax assets, net of valuation allowance | 94,203 | 83,763 |
Deferred tax liabilities: | ||
Goodwill and intangibles - net | (98,906) | (96,493) |
Property, plant and equipment | (34,625) | (18,288) |
Other | (3,981) | (7,419) |
Total deferred tax liabilities | (137,512) | (122,200) |
Net deferred tax liabilities | $ (43,309) | $ (38,437) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of U.S Statutory Rate to Effective Tax Rate) (Details) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 1.20% | 1.30% | 1.80% |
Taxes on international activities | (3.80%) | (3.70%) | (1.70%) |
Research credit | (0.80%) | (0.70%) | (3.10%) |
Retroactive extension of research credit | (2.40%) | 0.00% | (2.50%) |
Domestic production activities deduction | (1.60%) | (1.30%) | (2.00%) |
Adjustments of prior period tax items | (2.10%) | (2.90%) | (0.60%) |
Other items, net | (0.80%) | (0.70%) | 0.00% |
Effective tax rate | 24.70% | 27.00% | 26.90% |
Income Taxes (Reconciliation 96
Income Taxes (Reconciliation of the Beginning and Ending Amounts of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes | |||
Beginning Balance | $ 22,687 | $ 22,694 | $ 18,069 |
Additions to current year tax positions | 2,234 | 8,830 | 5,587 |
Reductions to prior year tax positions | (7,785) | (9,684) | 0 |
Additions to prior year tax positions | 5,124 | 1,844 | 1,079 |
Lapse of applicable statute of limitations | (791) | (997) | (2,041) |
Ending Balance | $ 21,469 | $ 22,687 | $ 22,694 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015USD ($)shares | Mar. 31, 2014USD ($)shares | Mar. 31, 2013USD ($)shares | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($)shares | Sep. 30, 2013USD ($)shares | |
Value of Company Stock Contributed to Defined Contribution Benefit Plans | $ 12,574 | $ 11,193 | $ 9,780 | |||
Treasury Stock Issued During Period, Shares, Employee Benefit Plans | shares | 259 | 260 | 250 | |||
Shares of Woodward stock held in Woodward Retirement Savings Plan | shares | 4,887 | 5,176 | ||||
Years of service required to be eligible to participate in plan | 10 years | |||||
Pension Plans, Defined Benefit [Member] | ||||||
Projected benefit obligation | $ 208,101 | $ 201,275 | $ 190,423 | |||
Fair value of plan assets | 196,253 | 205,161 | 190,175 | |||
Benefits paid | 6,502 | 6,050 | ||||
United States Pension Plans of US Entity, Defined Benefit [Member] | ||||||
Projected benefit obligation | 145,870 | 137,740 | 126,532 | |||
Fair value of plan assets | 135,590 | 142,090 | $ 129,518 | |||
Benefits paid | 4,078 | $ 3,732 | ||||
Estimated future employer contributions in the next fiscal year | $ 24 | |||||
Discount rate support/source data | high-quality corporate bond yield curve matched with projected separate cash flows to settle the entire benefit obligations | bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding | ||||
Accumulated benefit obligation | $ 145,870 | $ 137,423 | ||||
United Kingdom Plan, Defined Benefit [Member] | ||||||
Projected benefit obligation | 52,295 | |||||
Fair value of plan assets | 50,033 | |||||
Estimated future employer contributions in the next fiscal year | 544 | |||||
Japan Plan, Defined Benefit [Member] | ||||||
Projected benefit obligation | 9,936 | |||||
Fair value of plan assets | 10,630 | |||||
Estimated future employer contributions in the next fiscal year | 251 | |||||
Switzerland Plan, Defined Benefit [Member] | ||||||
Discount rate support/source data | high quality swap rates plus a credit spread of 0.20% in fiscal year 2013 | |||||
Foreign Pension Plans, Defined Benefit [Member] | ||||||
Projected benefit obligation | 62,231 | 63,535 | $ 63,891 | |||
Fair value of plan assets | 60,663 | 63,071 | 60,657 | |||
Benefits paid | $ 2,424 | 2,318 | ||||
Discount rate support/source data | In the United Kingdom and Japan, Woodward continues to use a high-quality corporate bond yield curve matched with separate cash flows to develop a single rate to determine the single rate equivalent to settle the entire benefit obligations in each jurisdiction | |||||
Accumulated benefit obligation | $ 59,742 | 61,041 | ||||
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||||
Projected benefit obligation | 34,927 | 29,225 | 28,996 | |||
Fair value of plan assets | 0 | 0 | 0 | |||
Benefits paid | 3,848 | 4,243 | ||||
Estimated future employer contributions in the next fiscal year | 4,103 | |||||
Accumulated benefit obligation | $ 34,927 | $ 29,225 | ||||
Option to elect company provided medical insurance coverage up to this age and a Medicare supplemental plan after this age | 65 | |||||
Age employees were eligible to participate in plan | 55 | |||||
Approximate number of retired employees and their covered dependents and beneficiaries currently providing postretirement benefits | 850 | |||||
Approximate number of active employees and their covered dependants and beneficiaries who may receive postretirement benefits in the future | 35 | |||||
United Kingdom, Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||||
Projected benefit obligation | $ 486 | |||||
Benefits paid | $ 15 | |||||
Discount rate support/source data | high-quality corporate bond yield curve matched with separate cash flows to develop a single rate to determine the single rate equivalent to settle the entire benefit obligations | |||||
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | ||||||
Discount rate support/source data | high-quality corporate bond yield curve matched with projected separate cash flows to settle the entire benefit obligations | bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding | ||||
Cash and Cash Equivalents [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | $ 668 | $ 484 | ||||
Pooled funds: Index linked U.K. government securities fund [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 4,716 | 4,566 | ||||
Pooled funds: Index linked U.K. long-term government securities fund [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 10,583 | 5,569 | ||||
Mutual funds: U.S. corporate bond fund [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 56,210 | 56,559 | ||||
Pooled funds: Index linked U.K. corporate bonds fund [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 16,613 | 16,897 | ||||
Equity Funds [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 12,327 | |||||
Pooled funds: Japanese fixed income securities [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 4,805 | 4,676 | ||||
Pooled funds: International fixed income securities [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 1,624 | 1,638 | ||||
Mutual funds: U.S. equity large cap fund [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 47,517 | 49,220 | ||||
Mutual funds: International equity large cap growth fund [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 31,396 | 35,995 | ||||
Pooled funds: Japanese equity securities [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 2,116 | 2,330 | ||||
Pooled funds: International equity securities [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 1,982 | 2,067 | ||||
Pooled funds: Index linked U.K. equity fund [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 8,687 | 6,240 | ||||
Pooled funds: Index linked international equity fund [Member] | Pension Plans, Defined Benefit [Member] | ||||||
Fair value of plan assets | 9,336 | 6,593 | ||||
Business Acquisition, Acquiree - Duarte Business [Member] | ||||||
Pension and Other Postretirement Defined Benefit Plans Liabilities | 95 | |||||
Total stockholders equity | ||||||
Value of Company Stock Contributed to Defined Contribution Benefit Plans | 12,574 | 11,193 | 9,780 | |||
Treasury Stock at Cost [Member] | ||||||
Value of Company Stock Contributed to Defined Contribution Benefit Plans | $ 8,084 | $ 8,356 | $ 7,857 | |||
Treasury Stock Issued During Period, Shares, Employee Benefit Plans | shares | 259 | 260 | 250 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Costs of Retirement Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Multiemployer Plan [Member] | |||
Company Contributions | $ 600 | $ 728 | $ 797 |
Defined Contribution Plan [Member] | |||
Company Costs | $ 30,933 | $ 24,921 | $ 20,012 |
Retirement Benefits (Schedule99
Retirement Benefits (Schedule of Assumptions Used) (Details) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Weighted-average assumptions to determine benefit obligation at September 30: | |||
Discount rate | 4.39% | 4.40% | 5.15% |
Rate of compensation increase | 3.50% | 3.50% | |
Weighted-average assumptions to determine periodic benefit costs for years ending September 30: | |||
Discount rate | 4.40% | 5.15% | 4.10% |
Rate of compensation increase | 3.50% | 3.50% | |
Long-term rate of return on plan assets | 7.62% | 7.62% | 7.59% |
United Kingdom Plan, Defined Benefit [Member] | |||
Weighted-average assumptions to determine benefit obligation at September 30: | |||
Discount rate | 3.75% | 4.10% | 4.50% |
Rate of compensation increase | 3.40% | 3.50% | 3.50% |
Weighted-average assumptions to determine periodic benefit costs for years ending September 30: | |||
Discount rate | 4.10% | 4.50% | 4.60% |
Rate of compensation increase | 3.50% | 3.50% | 3.90% |
Long-term rate of return on plan assets | 5.50% | 5.50% | 5.50% |
Japan Plan, Defined Benefit [Member] | |||
Weighted-average assumptions to determine benefit obligation at September 30: | |||
Discount rate | 0.97% | 1.10% | 1.25% |
Rate of compensation increase | 2.00% | 2.00% | 2.00% |
Weighted-average assumptions to determine periodic benefit costs for years ending September 30: | |||
Discount rate | 1.10% | 1.25% | 1.50% |
Rate of compensation increase | 2.00% | 2.00% | 2.00% |
Long-term rate of return on plan assets | 3.00% | 3.00% | 2.80% |
Switzerland Plan, Defined Benefit [Member] | |||
Weighted-average assumptions to determine benefit obligation at September 30: | |||
Discount rate | 2.25% | ||
Rate of compensation increase | 2.00% | ||
Weighted-average assumptions to determine periodic benefit costs for years ending September 30: | |||
Discount rate | 2.25% | 1.75% | |
Rate of compensation increase | 2.00% | 2.00% | |
Long-term rate of return on plan assets | 2.25% | 1.75% | |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Weighted-average assumptions to determine benefit obligation at September 30: | |||
Discount rate | 4.01% | 4.40% | 5.14% |
Weighted-average assumptions to determine periodic benefit costs for years ending September 30: | |||
Discount rate | 4.40% | 5.14% | 4.11% |
Retirement Benefits (Schedul100
Retirement Benefits (Schedule of Net Perioodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Pension Plans, Defined Benefit [Member] | |||
Service cost | $ 2,802 | $ 4,504 | $ 5,660 |
Interest cost | 8,084 | 8,792 | 7,682 |
Expected return on plan assets | (13,679) | (12,883) | (10,793) |
Amortization of: Net (losses) gains | (586) | (985) | (1,839) |
Amortization of: Prior service (benefit) cost | 383 | 93 | 67 |
Settlement costs | 0 | 0 | 37 |
Curtailment (gain) loss | 0 | (7,539) | 0 |
Net periodic retirement pension (benefit) cost | (1,824) | (6,048) | 4,492 |
United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Service cost | 2,018 | 3,516 | 4,608 |
Interest cost | 5,956 | 6,382 | 5,569 |
Expected return on plan assets | (10,647) | (9,813) | (8,183) |
Amortization of: Net (losses) gains | (396) | (330) | (1,374) |
Amortization of: Prior service (benefit) cost | 383 | 97 | 75 |
Settlement costs | 0 | 0 | 0 |
Curtailment (gain) loss | 0 | (6,624) | 0 |
Net periodic retirement pension (benefit) cost | (1,894) | (6,112) | 3,443 |
Foreign Pension Plans, Defined Benefit [Member] | |||
Service cost | 784 | 988 | 1,052 |
Interest cost | 2,128 | 2,410 | 2,113 |
Expected return on plan assets | (3,032) | (3,070) | (2,610) |
Amortization of: Net (losses) gains | (190) | (655) | (465) |
Amortization of: Prior service (benefit) cost | 0 | (4) | (8) |
Settlement costs | 0 | 0 | 37 |
Curtailment (gain) loss | 0 | (915) | 0 |
Net periodic retirement pension (benefit) cost | 70 | 64 | 1,049 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Service cost | 30 | 47 | 71 |
Interest cost | 1,233 | 1,432 | 1,244 |
Amortization of: Net (losses) gains | 73 | 200 | 68 |
Amortization of: Prior service (benefit) cost | (158) | (158) | (158) |
Net periodic retirement pension (benefit) cost | $ 1,032 | $ 1,121 | $ 1,089 |
Retirement Benefits (Schedul101
Retirement Benefits (Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Pension Plans, Defined Benefit [Member] | |||
Changes in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | $ 201,275 | $ 190,423 | |
Service cost | 2,802 | 4,504 | $ 5,660 |
Interest cost | 8,084 | 8,792 | 7,682 |
Net actuarial (gains) losses | 6,921 | 15,461 | |
Contribution by participants | 51 | 91 | |
Benefits paid | (6,502) | (6,050) | |
Amounts paid by Company for Pension Protection Fund levy | 0 | (13) | |
Plan amendments | 0 | 3,355 | |
Settlements | 0 | (1,985) | |
Curtailments | 0 | (12,258) | |
Foreign currency exchange rate changes | (4,530) | (1,045) | |
Projected benefit obligation at end of year | 208,101 | 201,275 | 190,423 |
Changes in fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 205,161 | 190,175 | |
Actual return on plan assets | 440 | 20,976 | |
Contributions by the company | 1,568 | 2,962 | |
Contributions by plan participants | 51 | 91 | |
Benefits paid | (6,502) | (6,050) | |
Settlements | 0 | (1,985) | |
Foreign currency exchange rate changes | (4,465) | (1,008) | |
Fair value of plan assets at end of year | 196,253 | 205,161 | 190,175 |
Net over/(under)funded status at end of year | (11,848) | 3,886 | |
United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Changes in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 137,740 | 126,532 | |
Service cost | 2,018 | 3,516 | 4,608 |
Interest cost | 5,956 | 6,382 | 5,569 |
Net actuarial (gains) losses | 4,206 | 12,446 | |
Contribution by participants | 28 | 0 | |
Benefits paid | (4,078) | (3,732) | |
Amounts paid by Company for Pension Protection Fund levy | 0 | 0 | |
Plan amendments | 0 | 3,355 | |
Settlements | 0 | 0 | |
Curtailments | 0 | (10,759) | |
Foreign currency exchange rate changes | 0 | 0 | |
Projected benefit obligation at end of year | 145,870 | 137,740 | 126,532 |
Changes in fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 142,090 | 129,518 | |
Actual return on plan assets | (2,535) | 15,764 | |
Contributions by the company | 85 | 540 | |
Contributions by plan participants | 28 | 0 | |
Benefits paid | (4,078) | (3,732) | |
Settlements | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of year | 135,590 | 142,090 | 129,518 |
Net over/(under)funded status at end of year | (10,280) | 4,350 | |
Foreign Pension Plans, Defined Benefit [Member] | |||
Changes in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 63,535 | 63,891 | |
Service cost | 784 | 988 | 1,052 |
Interest cost | 2,128 | 2,410 | 2,113 |
Net actuarial (gains) losses | 2,715 | 3,015 | |
Contribution by participants | 23 | 91 | |
Benefits paid | (2,424) | (2,318) | |
Amounts paid by Company for Pension Protection Fund levy | 0 | (13) | |
Plan amendments | 0 | 0 | |
Settlements | 0 | (1,985) | |
Curtailments | 0 | (1,499) | |
Foreign currency exchange rate changes | (4,530) | (1,045) | |
Projected benefit obligation at end of year | 62,231 | 63,535 | 63,891 |
Changes in fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 63,071 | 60,657 | |
Actual return on plan assets | 2,975 | 5,212 | |
Contributions by the company | 1,483 | 2,422 | |
Contributions by plan participants | 23 | 91 | |
Benefits paid | (2,424) | (2,318) | |
Settlements | 0 | (1,985) | |
Foreign currency exchange rate changes | (4,465) | (1,008) | |
Fair value of plan assets at end of year | 60,663 | 63,071 | 60,657 |
Net over/(under)funded status at end of year | (1,568) | (464) | |
United Kingdom Plan, Defined Benefit [Member] | |||
Changes in projected benefit obligation: | |||
Projected benefit obligation at end of year | 52,295 | ||
Changes in fair value of plan assets: | |||
Fair value of plan assets at end of year | 50,033 | ||
Japan Plan, Defined Benefit [Member] | |||
Changes in projected benefit obligation: | |||
Projected benefit obligation at end of year | 9,936 | ||
Changes in fair value of plan assets: | |||
Fair value of plan assets at end of year | 10,630 | ||
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Changes in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 29,225 | 28,996 | |
Service cost | 30 | 47 | 71 |
Interest cost | 1,233 | 1,432 | 1,244 |
Net actuarial (gains) losses | 6,705 | 1,145 | |
Contribution by participants | 1,613 | 1,843 | |
Benefits paid | (3,848) | (4,243) | |
Foreign currency exchange rate changes | (31) | 5 | |
Projected benefit obligation at end of year | 34,927 | 29,225 | 28,996 |
Changes in fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Contributions by the company | 2,235 | 2,400 | |
Contributions by plan participants | 1,613 | 1,843 | |
Benefits paid | (3,848) | (4,243) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Net over/(under)funded status at end of year | $ (34,927) | $ (29,225) |
Retirement Benefits (Schedul102
Retirement Benefits (Schedule of Accumulated Benefit Obligations In Excess of and Less Than Fair Value of Plan Assets) (Details) - Pension Plans, Defined Benefit [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Plans with accumulated benefit obligation in excess of plan assets | ||
Projected benefit obligation, plans with ABO in excess of plan assets | $ (198,165) | $ (25,955) |
Accumulated benefit obligation, plans with ABO in excess of plan assets | (196,694) | (25,955) |
Fair value of plan assets, plans with ABO in excess of plan assets | 185,623 | 24,671 |
Plans with accumulated benefit obligation less than plan assets | ||
Projected benefit obligation, plans with ABO less than plan assets | (9,936) | (175,320) |
Accumulated benefit obligation, plans with ABO less than plan assets | (8,918) | (172,509) |
Fair value of plan assets, plans with ABO less than plan assets | $ 10,630 | $ 180,490 |
Retirement Benefits (Schedul103
Retirement Benefits (Schedule of Amounts Recognized in Balance Sheet and Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Pension Plans, Defined Benefit [Member] | ||
Amounts recognized in statement of financial position consist of: | ||
Other non-current assets | $ 694 | $ 5,634 |
Other non-current liabilities | (12,542) | (1,748) |
Net over/(under)funded status at end of year | (11,848) | 3,886 |
Amounts recognized in accumulated other comprehensive loss (income) consist of: | ||
Unrecognized net prior service (benefit) cost | 4,241 | 4,624 |
Unrecognized net (gains) losses | 40,479 | 21,769 |
Total amounts recognized | 44,720 | 26,393 |
Deferred taxes | (16,707) | (9,658) |
Amounts recognized in accumulated other comprehensive loss (income) | 28,013 | 16,735 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Amounts recognized in statement of financial position consist of: | ||
Other non-current assets | 0 | 5,634 |
Other non-current liabilities | (10,280) | (1,284) |
Net over/(under)funded status at end of year | (10,280) | 4,350 |
Amounts recognized in accumulated other comprehensive loss (income) consist of: | ||
Unrecognized net prior service (benefit) cost | 4,241 | 4,624 |
Unrecognized net (gains) losses | 26,861 | 9,867 |
Total amounts recognized | 31,102 | 14,491 |
Deferred taxes | (11,890) | (5,527) |
Amounts recognized in accumulated other comprehensive loss (income) | 19,212 | 8,964 |
Foreign Pension Plans, Defined Benefit [Member] | ||
Amounts recognized in statement of financial position consist of: | ||
Other non-current assets | 694 | 0 |
Other non-current liabilities | (2,262) | (464) |
Net over/(under)funded status at end of year | (1,568) | (464) |
Amounts recognized in accumulated other comprehensive loss (income) consist of: | ||
Unrecognized net prior service (benefit) cost | 0 | 0 |
Unrecognized net (gains) losses | 13,618 | 11,902 |
Total amounts recognized | 13,618 | 11,902 |
Deferred taxes | (4,817) | (4,131) |
Amounts recognized in accumulated other comprehensive loss (income) | 8,801 | 7,771 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Amounts recognized in statement of financial position consist of: | ||
Accrued liabilities | (2,481) | (2,262) |
Other non-current liabilities | (32,446) | (26,963) |
Net over/(under)funded status at end of year | (34,927) | (29,225) |
Amounts recognized in accumulated other comprehensive loss (income) consist of: | ||
Unrecognized net prior service (benefit) cost | (477) | (635) |
Unrecognized net (gains) losses | 3,745 | (3,031) |
Total amounts recognized | 3,268 | (3,666) |
Deferred taxes | (1,267) | 1,388 |
Amounts recognized in accumulated other comprehensive loss (income) | $ 2,001 | $ (2,278) |
Retirement Benefits (Schedul104
Retirement Benefits (Schedule of Changes in Plan Assets and Benefit Obligations Recorded in Other Comprehensive (Income) Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net (gain) loss arising during the period | $ 26,866 | $ (3,746) | $ (26,756) |
Prior service (benefit) cost | 0 | 3,355 | 0 |
Loss (gain) due to settlement or curtailment arising during the period | 0 | 7,539 | (36) |
Amortization of: Net gains (losses) | (513) | (785) | (1,770) |
Amortization of: Prior service benefit (cost) | (225) | 66 | 90 |
Foreign currency exchange rate changes | (867) | (104) | $ (673) |
Pension Plans, Defined Benefit [Member] | |||
Net (gain) loss arising during the period | 20,161 | (4,891) | |
Prior service (benefit) cost | 0 | 3,355 | |
Loss (gain) due to settlement or curtailment arising during the period | 0 | 7,539 | |
Amortization of: Net gains (losses) | (586) | (985) | |
Amortization of: Prior service benefit (cost) | (383) | (93) | |
Foreign currency exchange rate changes | (865) | (107) | |
Total recorded in accumulated other comprehensive loss (income) | 18,327 | 4,818 | |
United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Net (gain) loss arising during the period | 17,390 | (4,269) | |
Prior service (benefit) cost | 0 | 3,355 | |
Loss (gain) due to settlement or curtailment arising during the period | 0 | 6,624 | |
Amortization of: Net gains (losses) | (396) | (330) | |
Amortization of: Prior service benefit (cost) | (383) | (97) | |
Foreign currency exchange rate changes | 0 | 0 | |
Total recorded in accumulated other comprehensive loss (income) | 16,611 | 5,283 | |
Foreign Pension Plans, Defined Benefit [Member] | |||
Net (gain) loss arising during the period | 2,771 | (622) | |
Prior service (benefit) cost | 0 | 0 | |
Loss (gain) due to settlement or curtailment arising during the period | 0 | 915 | |
Amortization of: Net gains (losses) | (190) | (655) | |
Amortization of: Prior service benefit (cost) | 0 | 4 | |
Foreign currency exchange rate changes | (865) | (107) | |
Total recorded in accumulated other comprehensive loss (income) | 1,716 | (465) | |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Net (gain) loss arising during the period | 6,705 | 1,145 | |
Amortization of: Net gains (losses) | 73 | 200 | |
Amortization of: Prior service benefit (cost) | 158 | 159 | |
Foreign currency exchange rate changes | (2) | 3 | |
Total recorded in accumulated other comprehensive loss (income) | $ 6,934 | $ 1,507 |
Retirement Benefits (Schedul105
Retirement Benefits (Schedule of Amounts Expected to be Amortized from Accumulated Other Comprehensive Income (Loss) and Reported as a Component of Net Periodic Benefit Cost During the Next Fiscal Year) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Pension Plans, Defined Benefit [Member] | |
Prior service (benefit) cost | $ 383 |
Net actuarial (gains) losses | 1,555 |
United States Pension Plans of US Entity, Defined Benefit [Member] | |
Prior service (benefit) cost | 383 |
Net actuarial (gains) losses | 1,292 |
Foreign Pension Plans, Defined Benefit [Member] | |
Prior service (benefit) cost | 0 |
Net actuarial (gains) losses | $ 263 |
Retirement Benefits (Schedul106
Retirement Benefits (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Pension Plans, Defined Benefit [Member] | |
2,016 | $ 7,354 |
2,017 | 8,133 |
2,018 | 8,765 |
2,019 | 9,631 |
2,020 | 10,081 |
2021 - 2025 | 58,871 |
United States Pension Plans of US Entity, Defined Benefit [Member] | |
2,016 | 5,140 |
2,017 | 5,776 |
2,018 | 6,401 |
2,019 | 7,071 |
2,020 | 7,614 |
2021 - 2025 | 44,971 |
Foreign Pension Plans, Defined Benefit [Member] | |
2,016 | 2,214 |
2,017 | 2,357 |
2,018 | 2,364 |
2,019 | 2,560 |
2,020 | 2,467 |
2021 - 2025 | $ 13,900 |
Retirement Benefits (Schedul107
Retirement Benefits (Schedule of Allocation of Plan Assets, Actual and Target Allocations) (Details) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Actual Allocation of Plan Assets | 100.00% | 100.00% |
United Kingdom Plan, Defined Benefit [Member] | ||
Actual Allocation of Plan Assets | 100.00% | 100.00% |
Japan Plan, Defined Benefit [Member] | ||
Actual Allocation of Plan Assets | 100.00% | 100.00% |
Other Investment Asset [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Target Allocation, Minimum | 0.00% | 0.00% |
Target Allocation, Maximum | 0.00% | 0.00% |
Actual Allocation of Plan Assets | 0.30% | 0.20% |
Other Investment Asset [Member] | United Kingdom Plan, Defined Benefit [Member] | ||
Target Allocation, Minimum | 0.00% | 0.00% |
Target Allocation, Maximum | 0.00% | 0.00% |
Actual Allocation of Plan Assets | 0.20% | 0.10% |
Other Investment Asset [Member] | Japan Plan, Defined Benefit [Member] | ||
Target Allocation, Minimum | 0.00% | 0.00% |
Target Allocation, Maximum | 2.00% | 2.00% |
Actual Allocation of Plan Assets | 1.00% | 0.90% |
Equity Securities [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Target Allocation, Minimum | 40.70% | 40.70% |
Target Allocation, Maximum | 80.70% | 80.70% |
Actual Allocation of Plan Assets | 58.20% | 60.00% |
Equity Securities [Member] | United Kingdom Plan, Defined Benefit [Member] | ||
Target Allocation, Minimum | 40.00% | 40.00% |
Target Allocation, Maximum | 70.00% | 70.00% |
Actual Allocation of Plan Assets | 36.00% | 48.20% |
Equity Securities [Member] | Japan Plan, Defined Benefit [Member] | ||
Target Allocation, Minimum | 36.00% | 36.00% |
Target Allocation, Maximum | 44.00% | 44.00% |
Actual Allocation of Plan Assets | 38.60% | 40.70% |
Debt Securities [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Target Allocation, Minimum | 29.30% | 29.30% |
Target Allocation, Maximum | 49.30% | 49.30% |
Actual Allocation of Plan Assets | 41.50% | 39.80% |
Debt Securities [Member] | United Kingdom Plan, Defined Benefit [Member] | ||
Target Allocation, Minimum | 35.00% | 35.00% |
Target Allocation, Maximum | 65.00% | 65.00% |
Actual Allocation of Plan Assets | 63.80% | 51.70% |
Debt Securities [Member] | Japan Plan, Defined Benefit [Member] | ||
Target Allocation, Minimum | 55.00% | 55.00% |
Target Allocation, Maximum | 63.00% | 63.00% |
Actual Allocation of Plan Assets | 60.40% | 58.40% |
Retirement Benefits (Schedul108
Retirement Benefits (Schedule of Allocation of Plan Assets, Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | $ 196,253 | $ 205,161 | $ 190,175 |
United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Fair value of plan assets | 135,590 | 142,090 | 129,518 |
Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 60,663 | 63,071 | 60,657 |
United Kingdom Plan, Defined Benefit [Member] | |||
Fair value of plan assets | 50,033 | ||
Japan Plan, Defined Benefit [Member] | |||
Fair value of plan assets | 10,630 | ||
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 0 | 0 | $ 0 |
Cash and Cash Equivalents [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 668 | 484 | |
Pooled funds: Index linked U.K. government securities fund [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 4,716 | 4,566 | |
Pooled funds: Index linked U.K. long-term government securities fund [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 10,583 | 5,569 | |
Mutual funds: U.S. corporate bond fund [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 56,210 | 56,559 | |
Pooled funds: Index linked U.K. corporate bonds fund [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 16,613 | 16,897 | |
Pooled funds: Japanese fixed income securities [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 4,805 | 4,676 | |
Pooled funds: International fixed income securities [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 1,624 | 1,638 | |
Mutual funds: U.S. equity large cap fund [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 47,517 | 49,220 | |
Mutual funds: International equity large cap growth fund [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 31,396 | 35,995 | |
Pooled funds: Japanese equity securities [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 2,116 | 2,330 | |
Pooled funds: International equity securities [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 1,982 | 2,067 | |
Pooled funds: Index linked U.K. equity fund [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 8,687 | 6,240 | |
Pooled funds: Index linked international equity fund [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 9,336 | 6,593 | |
Equity Funds [Member] | Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 12,327 | ||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Fair value of plan assets | 135,590 | 142,090 | |
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 201 | 168 | |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Fair value of plan assets | 467 | 316 | |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 201 | 168 | |
Fair Value, Inputs, Level 1 [Member] | Mutual funds: U.S. corporate bond fund [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Fair value of plan assets | 56,210 | 56,559 | |
Fair Value, Inputs, Level 1 [Member] | Mutual funds: U.S. equity large cap fund [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Fair value of plan assets | 47,517 | 49,220 | |
Fair Value, Inputs, Level 1 [Member] | Mutual funds: International equity large cap growth fund [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | |||
Fair value of plan assets | 31,396 | 35,995 | |
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 60,462 | 62,903 | |
Fair Value, Inputs, Level 2 [Member] | Pooled funds: Index linked U.K. government securities fund [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 4,716 | 4,566 | |
Fair Value, Inputs, Level 2 [Member] | Pooled funds: Index linked U.K. long-term government securities fund [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 10,583 | 5,569 | |
Fair Value, Inputs, Level 2 [Member] | Pooled funds: Index linked U.K. corporate bonds fund [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 16,613 | 16,897 | |
Fair Value, Inputs, Level 2 [Member] | Pooled funds: Japanese fixed income securities [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 4,805 | 4,676 | |
Fair Value, Inputs, Level 2 [Member] | Pooled funds: International fixed income securities [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 1,624 | 1,638 | |
Fair Value, Inputs, Level 2 [Member] | Pooled funds: Japanese equity securities [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 2,116 | 2,330 | |
Fair Value, Inputs, Level 2 [Member] | Pooled funds: International equity securities [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 1,982 | 2,067 | |
Fair Value, Inputs, Level 2 [Member] | Pooled funds: Index linked U.K. equity fund [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | 8,687 | 6,240 | |
Fair Value, Inputs, Level 2 [Member] | Pooled funds: Index linked international equity fund [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | $ 9,336 | 6,593 | |
Fair Value, Inputs, Level 2 [Member] | Equity Funds [Member] | Foreign Pension Plans, Defined Benefit [Member] | |||
Fair value of plan assets | $ 12,327 |
Retirement Benefits (Schedul109
Retirement Benefits (Schedule of Health Care Cost Trend Rates) (Details) - Other Postretirement Benefit Plans, Defined Benefit [Member] | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Health care cost trend rate assumed for next year | 7.00% | 7.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,024 | 2,023 |
Retirement Benefits (Schedul110
Retirement Benefits (Schedule of Health Care Costs Sensitivity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Retirement Benefits | ||
Effect on projected fiscal year 2016 service and interest cost, 1% increase | $ 130 | |
Effect on projected fiscal year 2016 service and interest cost, 1% decrease | $ (111) | |
Effect on accumulated postretirement benefit obligation, 1% increase | $ 3,372 | |
Effect on accumulated postretirement benefit obligation, 1% decrease | $ (2,949) |
Retirement Benefits (Schedul111
Retirement Benefits (Schedule of estimated remaining cash contributions) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2015USD ($) | |
United States Pension Plans of US Entity, Defined Benefit [Member] | |
Estimated future employer contributions in the next fiscal year | $ 24 |
United Kingdom Plan, Defined Benefit [Member] | |
Estimated future employer contributions in the next fiscal year | 544 |
Japan Plan, Defined Benefit [Member] | |
Estimated future employer contributions in the next fiscal year | 251 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |
Estimated future employer contributions in the next fiscal year | $ 4,103 |
Retirement Benefits (Schedul112
Retirement Benefits (Schedule of Future Postretirement Company Contributions) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2015USD ($) | |
United States Pension Plans of US Entity, Defined Benefit [Member] | |
2,016 | $ 24 |
United Kingdom Plan, Defined Benefit [Member] | |
2,016 | 544 |
Japan Plan, Defined Benefit [Member] | |
2,016 | 251 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |
2,016 | 4,103 |
2,017 | 4,086 |
2,018 | 4,082 |
2,019 | 4,097 |
2,020 | 4,066 |
2021 - 2025 | $ 19,476 |
Stockholders' Equity (Equity Na
Stockholders' Equity (Equity Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2010 | |
Payments for Repurchase of Common Stock | $ 157,160 | $ 141,488 | $ 45,754 | |||
Purchases of treasury stock, number of shares | 458 | 2,048 | ||||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 9,412 | $ 9,412 | ||||
Unrecognized compensation cost is expected to be recognized over a weighted-average period | 1 year 4 months 24 days | |||||
Forfeiture rate, Board of Directors | 0.00% | 0.00% | ||||
Forfeiture rate, non-Board of Directors | 9.00% | 9.00% | ||||
2010 Authorization [Member] | ||||||
Authorized repurchase amount | $ 200,000 | |||||
Repurchase period in years | 3 years | |||||
Purchases of treasury stock | $ 45,754 | |||||
Purchases of treasury stock, number of shares | 1,233 | |||||
2013 Authorization [Member] | ||||||
Authorized repurchase amount | $ 200,000 | $ 200,000 | ||||
Repurchase period in years | 3 years | |||||
Purchases of treasury stock | $ 32,118 | $ 141,488 | ||||
Purchases of treasury stock, number of shares | 622 | 3,272 | ||||
2015 Authorization [Member] | ||||||
Authorized repurchase amount | $ 300,000 | $ 300,000 | ||||
Repurchase period in years | 3 years | |||||
Purchases of treasury stock, number of shares | 2,506 | |||||
Goldman Sachs Accelerated Share Repurchase Program [Member] | ||||||
Payments for Repurchase of Common Stock | $ 125,000 | |||||
Purchases of treasury stock, number of shares | 458 | 2,048 | ||||
Restricted Stock Award [Member] | ||||||
Terms of restricted stock award | 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. |
Stockholders' Equity (Stock-Bas
Stockholders' Equity (Stock-Based Compensation Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | |
Number of stock shares authorized for grants | 7,410 | ||
Number of shares available for future grants | 1,746 | ||
Exercise prices of stock options outstanding | $ 32.28 | $ 28.08 | |
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 9,412 | ||
Unrecognized compensation cost is expected to be recognized over a weighted-average period | 1 year 4 months 24 days | ||
Stock Options [Member] | |||
Vesting period, in years | 4 years | ||
Vested contractual term, in years | 10 years | ||
Vesting rate | 25.00% | ||
Restricted Stock Award [Member] | |||
Restricted stock awards granted | 24 | ||
Restricted Stock Awards Vested | 0 | ||
Vesting period, in years | 4 years | ||
Service period for restricted stock award | 4 years | ||
Minimum [Member] | |||
Exercise prices of stock options outstanding | $ 12.54 | ||
Maximum [Member] | |||
Exercise prices of stock options outstanding | $ 46.55 |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends Declared and Paid) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Equity | |||||||||||
Dividends declared and paid | $ 24,646 | $ 21,263 | $ 21,866 | ||||||||
Cash dividends per share | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.38 | $ 0.32 | $ 0.32 |
Stockholders' Equity (Stock-116
Stockholders' Equity (Stock-based Compensation Expense Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Stock-Based Compensation | |||
Employee stock-based compensation expense | $ 14,255 | $ 11,241 | $ 9,414 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards) (Details) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Minimum [Member] | |||
Expected term | 6 years 2 months 12 days | 5 years 9 months 18 days | 5 years 9 months 18 days |
Estimated volatility | 36.50% | 38.50% | 48.70% |
Estimated dividend yield | 0.70% | 0.80% | 0.80% |
Risk-free interest rate | 2.00% | 1.70% | 0.80% |
Maximum [Member] | |||
Expected term | 8 years 9 months 18 days | 8 years 7 months 6 days | 8 years 7 months 6 days |
Estimated volatility | 36.50% | 38.50% | 54.90% |
Estimated dividend yield | 0.70% | 0.80% | 1.00% |
Risk-free interest rate | 2.30% | 2.50% | 1.30% |
Stockholders' Equity (Weighted
Stockholders' Equity (Weighted Average Grant Date Fair Value of Options Granted) (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Options granted, Weighted-Average Exercise Price Per Share | $ 46.55 | ||
Stock Options [Member] | |||
Options granted, Weighted-Average Exercise Price Per Share | $ 17.02 | $ 15.63 | $ 15.84 |
Stockholders' Equity (Activity
Stockholders' Equity (Activity for Stock Option Awards) (Details) shares in Thousands | 12 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Stock-Based Compensation | |
Number of options, beginning balance | 4,501 |
Weighted Average Exercise Price Per Share, beginning balance | $ / shares | $ 28.08 |
Options granted, Number of options | 751 |
Options granted, Weighted Average Exercise Price Per Share | $ / shares | $ 46.55 |
Options exercised, Number of options | (568) |
Options exercised, Weighted Average Exercise Price Per Share | $ / shares | $ 17.48 |
Options forfeited, Number of options | (43) |
Options forfeited, Weighted Average Exercise Price Per Share | $ / shares | $ 38.24 |
Number of options, ending balance | 4,641 |
Weighted Average Exercise Price Per Share, ending balance | $ / shares | $ 32.28 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Nonvested Stock Options) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Number of Options, beginning balance | 1,679 | ||
Weighted-Average Exercise Price Per Share, beginning balance | $ 34.83 | ||
Options granted, Number of options | 751 | ||
Options granted, Weighted-Average Exercise Price Per Share | $ 46.55 | ||
Options vested, Number of options | (664) | ||
Options vested, Weighted-Average Exercise Price Per Share | $ 33.07 | ||
Options forfeited, Number of options | (42) | ||
Options forfeited, Weighted-Average Exercise Price Per Share | $ 38.24 | ||
Number of Options, ending balance | 1,724 | 1,679 | |
Weighted-Average Exercise Price Per Share, ending balance | $ 40.54 | $ 34.83 | |
Stock Options [Member] | |||
Options granted, Weighted-Average Exercise Price Per Share | $ 17.02 | $ 15.63 | $ 15.84 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Options Vested, Or Expected to Vest and Are Exercisable) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Stock-Based Compensation | ||
Options outstanding, Number of options | 4,641 | 4,501 |
Options outstanding, Weighted-Average Exercise Price | $ 32.28 | $ 28.08 |
Options outstanding, Weighted-Average Remaining Life in Years | 5 years 8 months 12 days | |
Options outstanding, Aggregate Intrinsic Value | $ 43,646 | |
Options vested and exercisable, Number of options | 2,917 | |
Options vested and exercisable, Weighted-Average Exercise Price Per Share | $ 27.40 | |
Options vested and exercisable, Weighted-Average Remaining Life in Years | 4 years 3 months 18 days | |
Options vested and exercisable, Aggregate Intrinsic Value | $ 38,880 | |
Options vested and expected to vest, Number of options | 4,564 | |
Options vested and expected to vest, Weighted-Average Exercise Price Per Share | $ 32.08 | |
Options vested and to expected vest, Weighted-Average Remaining Life in Years | 5 years 7 months 6 days | |
Options vested and expected to vest, Aggregate Intrinsic Value | $ 43,595 |
Stockholders' Equity (Other Sto
Stockholders' Equity (Other Stock Option Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Stock-Based Compensation | |||
Total fair value of stock options vested | $ 9,656 | $ 9,459 | $ 7,271 |
Total intrinsic value of options exercised | 18,876 | 14,549 | 19,692 |
Cash received from exercises of stock options | 8,400 | 9,772 | 8,272 |
Excess tax benefit realized from exercise of stock options | $ 6,959 | $ 3,751 | $ 5,154 |
Stockholders' Equity (Change123
Stockholders' Equity (Changes in Restricted Stock Awards) (Details) - Restricted Stock Award [Member] shares in Thousands | 12 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of shares, beginning balance | 24 |
Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ / shares | $ 39.43 |
Shares granted, Number of Shares | 0 |
Shares vested, Number of Shares | 0 |
Shares forfeited, Number of Shares | 0 |
Number of shares, ending balance | 24 |
Weighted-Average Grant Date Fair Value Per Share, ending balance | $ / shares | $ 39.43 |
Commitments and Contingencie124
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Construction Related Contractual Obligation [Member] | |
Other Commitment | $ 26,660 |
Commitments and Contingencie125
Commitments and Contingencies (Future Minimum Rental Payments) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Commitments and Contingencies Disclosure | |
2,016 | $ 5,793 |
2,017 | 4,450 |
2,018 | 3,058 |
2,019 | 2,620 |
2,020 | 2,247 |
Thereafter | 1,378 |
Total | $ 19,546 |
Commitments and Contingencie126
Commitments and Contingencies (Rent Expense for All Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Commitments and Contingencies Disclosure | |||
Rent expense | $ 7,299 | $ 10,897 | $ 10,243 |
Commitments and Contingencie127
Commitments and Contingencies (Future Minimum Unconditional Purchase Obligations) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Commitments and Contingencies Disclosure | |
2,016 | $ 270,410 |
2,017 | 9,298 |
Total | $ 279,708 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
General Electric [Member] | Sales [Member] | |||
Percentage of total attributable to major customer | 18.00% | 15.00% | 15.00% |
General Electric [Member] | Trade Accounts Receivable [Member] | |||
Percentage of total attributable to major customer | 15.00% | 12.00% | |
U.S. Government Related [Member] | |||
Percentage of total attributable to major customer | 18.00% | 17.00% | 21.00% |
U.S. Government Related [Member] | Trade Accounts Receivable [Member] | |||
Percentage of total attributable to major customer | 3.00% | 2.00% |
Segment Information (Consolidat
Segment Information (Consolidated Net Sales and Earnings by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net sales | $ 562,625 | $ 494,810 | $ 493,222 | $ 487,646 | $ 565,447 | $ 524,284 | $ 482,467 | $ 429,042 | $ 2,038,303 | $ 2,001,240 | $ 1,935,976 |
Interest expense, net | (7,289) | (5,858) | (5,108) | (5,822) | (4,503) | (5,899) | (6,128) | (6,003) | (24,077) | (22,533) | (26,430) |
Consolidated earnings before income taxes | 68,727 | 57,559 | 57,591 | 57,072 | 75,076 | 62,468 | 56,756 | 32,944 | 240,949 | 227,244 | 199,571 |
Total of Reporting Segments [Member] | |||||||||||
Net sales | 2,038,303 | 2,001,240 | 1,935,976 | ||||||||
Segment earnings (loss) | 89,494 | 76,981 | 72,852 | 75,061 | 92,121 | 79,560 | 72,177 | 49,620 | 314,388 | 293,478 | 265,062 |
Aerospace [Member] | |||||||||||
Net sales | 335,207 | 288,480 | 281,426 | 255,770 | 318,209 | 274,923 | 261,021 | 229,872 | 1,160,883 | 1,084,025 | 1,061,477 |
Segment earnings (loss) | 59,964 | 46,362 | 45,628 | 35,793 | 57,005 | 39,357 | 40,289 | 22,549 | 187,747 | 159,200 | 166,122 |
Energy [Member] | |||||||||||
Net sales | 227,418 | 206,330 | 211,796 | 231,876 | 247,238 | 249,361 | 221,446 | 199,170 | 877,420 | 917,215 | 874,499 |
Segment earnings (loss) | 29,530 | 30,619 | 27,224 | 39,268 | 35,116 | 40,203 | 31,888 | 27,071 | 126,641 | 134,278 | 98,940 |
Unallocated Corporate [Member] | |||||||||||
Segment earnings (loss) | $ (13,478) | $ (13,564) | $ (10,153) | $ (12,167) | $ (12,542) | $ (11,193) | $ (9,293) | $ (10,673) | $ (49,362) | $ (43,701) | $ (39,061) |
Segment Information (Consoli130
Segment Information (Consolidated Total Assets, Depreciation, Amortization and Capital Expenditures by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Assets | $ 2,539,965 | $ 2,397,202 | $ 2,218,518 |
Property, plant and equipment, net | 756,100 | 513,279 | |
Depreciation and amortization | 75,235 | 77,353 | 74,233 |
Capital expenditures | 286,612 | 207,106 | 141,600 |
Aerospace [Member] | |||
Assets | 1,566,421 | 1,440,355 | 1,361,861 |
Depreciation and amortization | 46,488 | 46,895 | 49,887 |
Capital expenditures | 150,021 | 134,307 | 74,964 |
Energy [Member] | |||
Assets | 653,848 | 610,345 | 599,007 |
Depreciation and amortization | 20,768 | 22,672 | 20,890 |
Capital expenditures | 113,292 | 55,780 | 28,137 |
All Other Segments [Member] | |||
Assets | 233,862 | 273,510 | 207,535 |
Unallocated Corporate [Member] | |||
Assets | 85,834 | 72,992 | 50,115 |
Depreciation and amortization | 7,979 | 7,786 | 3,456 |
Capital expenditures | 23,299 | 17,019 | 38,499 |
Total of Reporting Segments [Member] | |||
Assets | 2,220,269 | 2,050,700 | 1,960,868 |
Depreciation and amortization | 67,256 | 69,567 | 70,777 |
Capital expenditures | $ 263,313 | $ 190,087 | $ 103,101 |
Segment Information (U.S. Gover
Segment Information (U.S. Government Related Sales by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net sales | $ 562,625 | $ 494,810 | $ 493,222 | $ 487,646 | $ 565,447 | $ 524,284 | $ 482,467 | $ 429,042 | $ 2,038,303 | $ 2,001,240 | $ 1,935,976 |
Aerospace [Member] | |||||||||||
Net sales | 335,207 | 288,480 | 281,426 | 255,770 | 318,209 | 274,923 | 261,021 | 229,872 | 1,160,883 | 1,084,025 | 1,061,477 |
Energy [Member] | |||||||||||
Net sales | $ 227,418 | $ 206,330 | $ 211,796 | $ 231,876 | $ 247,238 | $ 249,361 | $ 221,446 | $ 199,170 | 877,420 | 917,215 | 874,499 |
Total of Reporting Segments [Member] | |||||||||||
Net sales | 2,038,303 | 2,001,240 | 1,935,976 | ||||||||
U.S. Government Related [Member] | |||||||||||
Net sales | $ 364,388 | $ 339,893 | $ 405,362 | ||||||||
Percentage of total attributable to major customer | 18.00% | 17.00% | 21.00% | ||||||||
U.S. Government Related [Member] | Aerospace [Member] | |||||||||||
Net sales | $ 350,713 | $ 331,788 | $ 393,607 | ||||||||
U.S. Government Related [Member] | Energy [Member] | |||||||||||
Net sales | 13,675 | 8,105 | 11,755 | ||||||||
Indirect Sales to U.S. Government [Member] | |||||||||||
Net sales | $ 267,230 | $ 260,394 | $ 297,303 | ||||||||
Percentage of total attributable to major customer | 13.00% | 13.00% | 15.00% | ||||||||
Indirect Sales to U.S. Government [Member] | Aerospace [Member] | |||||||||||
Net sales | $ 258,391 | $ 254,806 | $ 289,197 | ||||||||
Indirect Sales to U.S. Government [Member] | Energy [Member] | |||||||||||
Net sales | 8,839 | 5,588 | 8,106 | ||||||||
Direct Sales to U.S. Government [Member] | |||||||||||
Net sales | $ 97,158 | $ 79,499 | $ 108,059 | ||||||||
Percentage of total attributable to major customer | 5.00% | 4.00% | 6.00% | ||||||||
Direct Sales to U.S. Government [Member] | Aerospace [Member] | |||||||||||
Net sales | $ 92,322 | $ 76,982 | $ 104,410 | ||||||||
Direct Sales to U.S. Government [Member] | Energy [Member] | |||||||||||
Net sales | $ 4,836 | $ 2,517 | $ 3,649 | ||||||||
Sales [Member] | General Electric [Member] | |||||||||||
Percentage of total attributable to major customer | 18.00% | 15.00% | 15.00% | ||||||||
Trade Accounts Receivable [Member] | U.S. Government Related [Member] | |||||||||||
Percentage of total attributable to major customer | 3.00% | 2.00% | |||||||||
Trade Accounts Receivable [Member] | General Electric [Member] | |||||||||||
Percentage of total attributable to major customer | 15.00% | 12.00% |
Segment Information (External N
Segment Information (External Net Sales by Geographical Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Consolidated net sales | $ 562,625 | $ 494,810 | $ 493,222 | $ 487,646 | $ 565,447 | $ 524,284 | $ 482,467 | $ 429,042 | $ 2,038,303 | $ 2,001,240 | $ 1,935,976 |
United States [Member] | |||||||||||
Net sales | 1,054,895 | 1,025,149 | 1,058,912 | ||||||||
All Other Countries [Member] | |||||||||||
Net sales | 172,211 | 156,615 | 108,400 | ||||||||
Europe [Member] | |||||||||||
Net sales | $ 569,322 | $ 519,721 | $ 480,922 | ||||||||
Germany [Member] | |||||||||||
Percent of external net sales, foreign countries | 10.00% | 9.00% | 9.00% | ||||||||
Asia [Member] | |||||||||||
Net sales | $ 241,875 | $ 299,755 | $ 287,742 |
Segment Information (Property,
Segment Information (Property, Plant, and Equipment - Net by Geographical Area) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Property, plant and equipment, net | $ 756,100 | $ 513,279 |
United States [Member] | ||
Property, plant and equipment, net | 704,686 | 457,563 |
Germany [Member] | ||
Property, plant and equipment, net | 25,634 | 26,898 |
Other Countries [Member] | ||
Property, plant and equipment, net | $ 25,780 | $ 28,818 |
Supplemental Quarterly Finan134
Supplemental Quarterly Financial Data (Unaudited) (Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Quarterly Financial Data | |||||||||||
Net sales | $ 562,625 | $ 494,810 | $ 493,222 | $ 487,646 | $ 565,447 | $ 524,284 | $ 482,467 | $ 429,042 | $ 2,038,303 | $ 2,001,240 | $ 1,935,976 |
Gross margin | 159,690 | 143,389 | 137,620 | 143,886 | 167,673 | 151,713 | 142,439 | 113,576 | |||
Earnings before income taxes | 68,727 | 57,559 | 57,591 | 57,072 | 75,076 | 62,468 | 56,756 | 32,944 | 240,949 | 227,244 | 199,571 |
Net Earnings: | |||||||||||
Net earnings | $ 50,060 | $ 43,753 | $ 43,855 | $ 43,784 | $ 51,662 | $ 46,001 | $ 44,798 | $ 23,383 | $ 181,452 | $ 165,844 | $ 145,942 |
Earnings per share: | |||||||||||
Basic earnings per share | $ 0.79 | $ 0.68 | $ 0.67 | $ 0.67 | $ 0.79 | $ 0.70 | $ 0.67 | $ 0.35 | $ 2.81 | $ 2.50 | $ 2.13 |
Diluted earnings per share | 0.77 | 0.66 | 0.66 | 0.66 | 0.77 | 0.69 | 0.66 | 0.34 | 2.75 | 2.45 | 2.10 |
Cash dividends per share | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.38 | $ 0.32 | $ 0.32 |
Supplemental Quarterly Finan135
Supplemental Quarterly Financial Data (Unaudited) (Quarterly Financial Information - Segment Reporting) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net sales | $ 562,625 | $ 494,810 | $ 493,222 | $ 487,646 | $ 565,447 | $ 524,284 | $ 482,467 | $ 429,042 | $ 2,038,303 | $ 2,001,240 | $ 1,935,976 |
Interest expense, net | (7,289) | (5,858) | (5,108) | (5,822) | (4,503) | (5,899) | (6,128) | (6,003) | (24,077) | (22,533) | (26,430) |
Consolidated earnings before income taxes | 68,727 | 57,559 | 57,591 | 57,072 | 75,076 | 62,468 | 56,756 | 32,944 | 240,949 | 227,244 | 199,571 |
Total of Reporting Segments [Member] | |||||||||||
Net sales | 2,038,303 | 2,001,240 | 1,935,976 | ||||||||
Segment earnings (loss) | 89,494 | 76,981 | 72,852 | 75,061 | 92,121 | 79,560 | 72,177 | 49,620 | 314,388 | 293,478 | 265,062 |
Aerospace [Member] | |||||||||||
Net sales | 335,207 | 288,480 | 281,426 | 255,770 | 318,209 | 274,923 | 261,021 | 229,872 | 1,160,883 | 1,084,025 | 1,061,477 |
Segment earnings (loss) | 59,964 | 46,362 | 45,628 | 35,793 | 57,005 | 39,357 | 40,289 | 22,549 | 187,747 | 159,200 | 166,122 |
Energy [Member] | |||||||||||
Net sales | 227,418 | 206,330 | 211,796 | 231,876 | 247,238 | 249,361 | 221,446 | 199,170 | 877,420 | 917,215 | 874,499 |
Segment earnings (loss) | 29,530 | 30,619 | 27,224 | 39,268 | 35,116 | 40,203 | 31,888 | 27,071 | 126,641 | 134,278 | 98,940 |
Unallocated Corporate [Member] | |||||||||||
Segment earnings (loss) | $ (13,478) | $ (13,564) | $ (10,153) | $ (12,167) | $ (12,542) | $ (11,193) | $ (9,293) | $ (10,673) | $ (49,362) | $ (43,701) | $ (39,061) |
Schedule II (Details)
Schedule II (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Currency translation adjustments | $ (934) | $ (704) | $ 155 |
Allowance for Trade Receivables [Member] | |||
Balance at Beginning of Year | 7,078 | 8,872 | 7,217 |
Additions: Charged to Costs and Expenses | 364 | 1,283 | 3,408 |
Additions: Charged to Other Accounts | 487 | 916 | 5 |
Deductions | (4,088) | (3,993) | (1,758) |
Balance at End of Year | 3,841 | 7,078 | 8,872 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Balance at Beginning of Year | 9,486 | 11,783 | 2,752 |
Additions: Charged to Costs and Expenses | 209 | 271 | 9,031 |
Additions: Charged to Other Accounts | 0 | 0 | |
Deductions | (2,891) | (2,568) | 0 |
Balance at End of Year | $ 6,804 | $ 9,486 | $ 11,783 |
Uncategorized Items - wwd-20150
Label | Element | Value |
Amended Revolving Credit Agreement [Member] | ||
Debt Covenant, Leverage Ratio Next Two Succeeding Fiscal Quarters Following Material Acquisition, Maximum | wwd_DebtCovenantRatioOfConsolidatedNetDebtToDebtCovenantEbitdaNextTwoSucceedingFiscalQuartersFollowingMaterialAcquisitionMaximum | 3.75 to 1.0 |
Line of Credit Facility, Covenant Terms, Cross Default Provision | wwd_LineOfCreditFacilityCovenantTermsCrossDefaultProvision | $ 60,000 |
Deferred Finance Costs, Gross | us-gaap_DeferredFinanceCostsGross | 2,359 |
Line of Credit Facility, Option To Increase Maximum Borrowing Capacity | wwd_LineOfCreditFacilityOptionToIncreaseMaximumBorrowingCapacity | 1,200,000 |
Brazil Credit Facility Brl Denominated Loan [Member] | ||
Outstanding borrowings | us-gaap_LineOfCreditFacilityFairValueOfAmountOutstanding | $ 2,430 |
Line of Credit Facility, Maximum Borrowing Capacity | us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity | $ 52,000 |
Debt Instrument, Description of Variable Rate Basis | us-gaap_DebtInstrumentDescriptionOfVariableRateBasis | interest at the lender's cost of borrowing rate at the date of borrowing, plus 1.75% |
Brazil Credit Facility [Member] | ||
Line of Credit Facility, Expiration Date | us-gaap_LineOfCreditFacilityExpirationDate1 | Jan. 1, 2016 |
Revolving Credit Agreement [Member] | ||
Deferred Finance Costs, Gross | us-gaap_DeferredFinanceCostsGross | $ 2,014 |