Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Feb. 06, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-08408 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | WOODWARD, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Central Index Key | 0000108312 | |
Entity Tax Identification Number | 36-1984010 | |
Entity Address, Address Line One | 1081 Woodward Way | |
Entity Address, City or Town | Fort Collins | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80524 | |
City Area Code | 970 | |
Local Phone Number | 482-5811 | |
Title of 12(b) Security | Common Stock, par value $0.001455 per share | |
Trading Symbol | WWD | |
Security Exchange Name | NASDAQ | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,216,267 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Consolidated Statements of Earnings | ||
Net sales | $ 720,355 | $ 652,811 |
Costs and expenses: | ||
Cost of goods sold | 534,917 | 492,174 |
Selling, general and administrative expenses | 62,045 | 51,927 |
Research and development costs | 36,846 | 38,867 |
Impairment of assets held for sale (Note 10) | 37,902 | |
Interest expense | 9,009 | 11,878 |
Interest income | (487) | (371) |
Other (income) expense, net (Note 18) | (21,425) | (3,179) |
Total costs and expenses | 658,807 | 591,296 |
Earnings before income taxes | 61,548 | 61,515 |
Income tax expense | 8,175 | 12,395 |
Net earnings | $ 53,373 | $ 49,120 |
Earnings per share (Note 4): | ||
Basic earnings per share | $ 0.86 | $ 0.79 |
Diluted earnings per share | $ 0.83 | $ 0.77 |
Weighted Average Common Shares Outstanding (Note 4): | ||
Basic | 61,991 | 61,818 |
Diluted | 64,673 | 64,059 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Consolidated Statements of Comprehensive Earnings | ||
Net earnings | $ 53,373 | $ 49,120 |
Other comprehensive earnings: | ||
Foreign currency translation adjustments | 11,153 | (1,734) |
Net (loss) gain on foreign currency transactions designated as hedges of net investments in foreign subsidiaries (Note 8) | (1,045) | 649 |
Taxes on changes on foreign currency translation adjustments | (340) | 383 |
Foreign currency translation and transactions adjustments, net of tax | 9,768 | (702) |
Unrealized (loss) gain on fair value adjustment of derivative instruments (Note 8) | (11,294) | 18,563 |
Reclassification of net realized (gain) loss on derivatives to earnings (Note 8) | 11,656 | (7,826) |
Taxes on changes on derivative transactions | 18 | (208) |
Derivative adjustments, net of tax | 380 | 10,529 |
Amortization of pension and other postretirement plan: | ||
Net prior service cost | 241 | 176 |
Net loss | 631 | 239 |
Foreign currency exchange rate changes on pension and other postretirement benefit plan liabilities | (1,502) | 303 |
Taxes on changes in pension and other postretirement benefit plan liability adjustments, net of foreign currency exchange rate changes | 240 | (209) |
Pension and other postretirement benefit plan adjustments, net of tax | (390) | 509 |
Total comprehensive earnings | $ 63,131 | $ 59,456 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents, including restricted cash of $2,630 and $1,500, respectively | $ 148,008 | $ 99,073 |
Accounts receivable, less allowance for uncollectible amounts of $3,813 and $7,908, respectively | 572,443 | 591,529 |
Inventories | 520,266 | 516,836 |
Income taxes receivable | 8,743 | 8,099 |
Other current assets | 79,737 | 55,691 |
Total current assets | 1,329,197 | 1,271,228 |
Property, plant and equipment, net | 1,033,578 | 1,058,775 |
Goodwill | 795,781 | 797,853 |
Intangible assets, net | 613,135 | 611,992 |
Deferred income tax assets | 18,315 | 18,161 |
Other assets | 217,163 | 198,517 |
Total assets | 4,007,169 | 3,956,526 |
Current liabilities: | ||
Short-term borrowings | 283,168 | 220,000 |
Current portion of long-term debt | 101,598 | |
Accounts payable | 218,486 | 240,460 |
Income taxes payable | 20,704 | 18,849 |
Accrued liabilities | 168,089 | 228,127 |
Total current liabilities | 792,045 | 707,436 |
Long-term debt, less current portion | 729,176 | 864,899 |
Deferred income tax liabilities | 154,563 | 151,362 |
Other liabilities | 532,782 | 506,088 |
Total liabilities | 2,208,566 | 2,229,785 |
Commitments and contingencies (Note 22) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.003 per share, 10,000 shares authorized, no shares issued | ||
Common stock, par value $0.001455 per share, 150,000 shares authorized, 72,960 shares issued | 106 | 106 |
Additional paid-in capital | 216,158 | 207,120 |
Accumulated other comprehensive losses | (93,548) | (103,306) |
Deferred compensation | 9,911 | 9,382 |
Retained earnings | 2,268,483 | 2,224,919 |
Stockholders' equity | 2,401,110 | 2,338,221 |
Treasury stock at cost, 10,814 shares and 11,040 shares, respectively | (592,596) | (602,098) |
Treasury stock held for deferred compensation, at cost, 215 shares and 211 shares, respectively | (9,911) | (9,382) |
Total stockholders' equity | 1,798,603 | 1,726,741 |
Total liabilities and stockholders' equity | $ 4,007,169 | $ 3,956,526 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets: | ||
Restricted cash | $ 2,630 | $ 1,500 |
Allowance, accounts receivable | $ 3,813 | $ 7,908 |
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 | 10,814,000 | 11,040,000 |
Treasury stock held for deferred compensation, shares | 215,000 | 211,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flows from operating activities: | |||
Net earnings | $ 53,373 | $ 49,120 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 32,451 | 38,642 | |
Impairment of assets held for sale | 37,902 | ||
Net loss (gain) on sales of assets | [1] | (13,547) | 79 |
Stock-based compensation | 10,982 | 10,851 | |
Deferred income taxes | (47) | (4,181) | |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 37,652 | 52,851 | |
Unbilled receivables (contract assets) | (33,150) | (4,705) | |
Costs to fulfill a contract | (6,401) | (7,293) | |
Inventories | (17,065) | (32,393) | |
Accounts payable and accrued liabilities | (79,535) | (38,145) | |
Contract liabilities | (144) | 10,050 | |
Income taxes | 1,001 | 8,581 | |
Retirement benefit obligations | (1,490) | (926) | |
Other | 5,463 | 2,181 | |
Net cash provided by operating activities | 27,445 | 84,712 | |
Cash flows from investing activities: | |||
Payments for purchase of property, plant, and equipment | (17,232) | (31,346) | |
Proceeds from sale of assets | 18,809 | 249 | |
Proceeds from sales of short-term investments | 27 | ||
Payments for purchases of short-term investments | (2) | (947) | |
Net cash provided by (used in) investing activities | 1,575 | (32,017) | |
Cash flows from financing activities: | |||
Cash dividends paid | (10,064) | (8,808) | |
Proceeds from sales of treasury stock | 7,558 | 3,384 | |
Borrowings on revolving lines of credit and short-term borrowings | 461,633 | 542,847 | |
Payments on revolving lines of credit and short-term borrowings | (441,500) | (501,218) | |
Payments of long-term debt and finance lease obligations | (439) | (100,132) | |
Net cash provided by (used in) financing activities | 17,188 | (63,927) | |
Effect of exchange rate changes on cash and cash equivalents | 2,727 | (728) | |
Net change in cash and cash equivalents | 48,935 | (11,960) | |
Cash and cash equivalents, including restricted cash, at beginning of year | 99,073 | 83,594 | |
Cash and cash equivalents, including restricted cash, at end of year | $ 148,008 | $ 71,634 | |
[1] | Included in net (gain) loss on sale of assets for the first quarter of fiscal year 2020 was the pre-tax gain on sale of Duarte real property in the amount of $ 13,522 . |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | 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 [Member] | Retained Earnings [Member] | Treasury Stock at Cost [Member] | Treasury Stock Held for Deferred Compensaton [Member] | Total |
Balances at Sep. 30, 2018 | $ 106 | $ 185,705 | $ (74,942) | $ (39,794) | $ (20,942) | $ (14,206) | $ 8,431 | $ 1,966,643 | $ (539,408) | $ (8,431) | $ 1,538,104 |
Balance, Common Stock, shares at Sep. 30, 2018 | 72,960 | ||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2018 | (11,203) | ||||||||||
Balance, Treasury stock held for deferred compensation, shares at Sep. 30, 2018 | (202) | ||||||||||
Net earnings | 49,120 | 49,120 | |||||||||
Other comprehensive earnings (loss), net of tax | 10,336 | (702) | 10,529 | 509 | 10,336 | ||||||
Cash dividends paid | (8,808) | (8,808) | |||||||||
Sales of treasury stock | (662) | $ 4,046 | 3,384 | ||||||||
Sales of treasury stock, shares | 107 | ||||||||||
Stock-based compensation | 10,851 | 10,851 | |||||||||
Purchases and transfers of stock by/to deferred compensation plan | 591 | $ (591) | |||||||||
Purchases and transfer of stock by/to deferred compensation plan, shares | (8) | ||||||||||
Distribution of stock from deferred compensation plan | (7) | $ 7 | |||||||||
Distribution of stock from deferred compensation plan, shares | 1 | ||||||||||
Balances at Dec. 31, 2018 | $ 106 | 195,894 | (64,651) | (40,541) | (10,413) | (13,697) | 9,015 | 2,044,695 | $ (535,362) | $ (9,015) | 1,640,682 |
Balance, Common Stock, shares at Dec. 31, 2018 | 72,960 | ||||||||||
Balance, Treasury Stock, shares at Dec. 31, 2018 | (11,096) | ||||||||||
Balance, Treasury stock held for deferred compensation, shares at Dec. 31, 2018 | (209) | ||||||||||
Cumulative effect from adoption | ASC 606 [Member] | (45) | (45) | 38,745 | 38,700 | |||||||
Cumulative effect from adoption | ASU 2016-16 [Member] | (1,005) | (1,005) | |||||||||
Balances at Sep. 30, 2019 | $ 106 | 207,120 | (103,306) | (53,235) | (4,955) | (45,116) | 9,382 | 2,224,919 | $ (602,098) | $ (9,382) | $ 1,726,741 |
Balance, Common Stock, shares at Sep. 30, 2019 | 72,960 | 72,960 | |||||||||
Balance, Treasury Stock, shares at Sep. 30, 2019 | (11,040) | (11,040) | |||||||||
Balance, Treasury stock held for deferred compensation, shares at Sep. 30, 2019 | (211) | (211) | |||||||||
Net earnings | 53,373 | $ 53,373 | |||||||||
Other comprehensive earnings (loss), net of tax | 9,758 | 9,768 | 380 | (390) | 9,758 | ||||||
Cash dividends paid | (10,064) | (10,064) | |||||||||
Sales of treasury stock | (1,944) | $ 9,502 | 7,558 | ||||||||
Sales of treasury stock, shares | 226 | ||||||||||
Stock-based compensation | 10,982 | 10,982 | |||||||||
Purchases and transfers of stock by/to deferred compensation plan | 543 | $ (543) | |||||||||
Purchases and transfer of stock by/to deferred compensation plan, shares | (5) | ||||||||||
Distribution of stock from deferred compensation plan | (14) | $ 14 | |||||||||
Distribution of stock from deferred compensation plan, shares | 1 | ||||||||||
Balances at Dec. 31, 2019 | $ 106 | $ 216,158 | $ (93,548) | $ (43,467) | $ (4,575) | $ (45,506) | $ 9,911 | 2,268,483 | $ (592,596) | $ (9,911) | $ 1,798,603 |
Balance, Common Stock, shares at Dec. 31, 2019 | 72,960 | 72,960 | |||||||||
Balance, Treasury Stock, shares at Dec. 31, 2019 | (10,814) | (10,814) | |||||||||
Balance, Treasury stock held for deferred compensation, shares at Dec. 31, 2019 | (215) | (215) | |||||||||
Cumulative effect from adoption | ASC 842 [Member] | $ 255 | $ 255 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Consolidated Statements of Stockholders' Equity | ||
Cash dividends per share | $ 0.1625 | $ 0.1425 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation | |
Basis of Presentation | Note 1. Basis of presentation The Condensed Consolidated Financial Statements of Woodward, Inc. (“Woodward” or the “Company”) as of December 31, 2019 and for the three-months ended December 31, 2019 and December 31, 2018, included herein, have not been audited by an independent registered public accounting firm. These Condensed Consolidated Financial Statements reflect all normal recurring adjustments that, in the opinion of management, are necessary to present fairly Woodward’s financial position as of December 31, 2019, and the statements of earnings, comprehensive earnings, cash flows, and changes in stockholders’ equity for the periods presented herein. The results of operations for the three-months ended December 31, 2019 are not necessarily indicative of the operating results to be expected for other interim periods or for the full fiscal year. Dollar and share amounts contained in these Condensed Consolidated Financial Statements are in thousands, except per share amounts. The Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in Woodward’s most recent Annual Report on Form 10-K filed with the SEC and other financial information filed with the SEC. Management is required to use estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures, in the preparation of the Condensed Consolidated Financial Statements included herein. Significant estimates in these Condensed Consolidated Financial Statements include allowances for uncollectible amounts, net realizable value of inventories, variable consideration including customer rebates earned and payable and early payment discounts, warranty reserves, useful lives of property and identifiable intangible assets, the evaluation of impairments of property and goodwill, the provision for income tax and related valuation reserves, the valuation of derivative instruments, 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, board members and any other eligible recipients, estimates of incremental borrowing rates used when estimating the present value of future lease payments, assumptions used when including renewal options or non-exercise of termination options in lease terms, estimates of total lifetime sales used in the recognition of revenue of deferred material rights and balance sheet classification of the related contract liability, estimates of total sales contract costs when recognizing revenue under the cost-to-cost method, and contingencies. Actual results could vary from Woodward’s estimates. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Dec. 31, 2019 | |
New Accounting Standards | |
New Accounting Standards | 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”). In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 amends ASC 740 to simplify the accounting for income taxes by removing certain exceptions for investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in the accounting standard under the FASB’s simplification initiative. ASU 2019-12 is effective for public entities for fiscal years beginning after December 15, 2020 (fiscal year 2022 for Woodward). Upon adoption, the amendments in ASU 2019-12 should be applied on a prospective basis to all periods presented. Early adoption is permitted. Woodward is currently assessing the impact of the adoption of the new guidance. Woodward expects to adopt the new guidance under ASU 2019-12 in fiscal year 2022. In August 2018, the FASB issued ASU 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Topic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU 2018-14 amends ASC 715 to add, remove, and modify disclosure requirements related to defined benefit pension and other postretirement plans. The ASU’s changes to disclosures aim to improve the effectiveness of ASC 715’s disclosure requirements under the FASB’s disclosure framework project. ASU 2018-14 is effective for public entities for fiscal years beginning after December 15, 2020 (fiscal year 2022 for Woodward). ASU 2018-14 does not impact the interim disclosure requirements of ASC 715. Upon adoption, the amendments in ASU 2018-14 should be applied on a retrospective basis to all periods presented. Early adoption is permitted. Woodward expects to adopt the new and modified disclosures requirements of this new guidance in fiscal year 2022. In February 2018, the FASB issued ASU 2018-02, “Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the enactment of tax reform under H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Tax Act”) (also known as “The Tax Cuts and Jobs Act”), and provides guidance on the disclosure requirements regarding the stranded tax effects. Woodward adopted ASU 2018-02 on October 1, 2019 and has elected not to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 adds a current expected credit loss (“CECL”) impairment model to U.S. GAAP that is based on expected losses rather than incurred losses. Modified retrospective adoption is required with any cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 (fiscal year 2021 for Woodward), including interim periods within the year of adoption. Early adoption is permitted for fiscal years beginning after December 15, 2018 (fiscal year 2020 for Woodward), including interim periods within those fiscal years. Woodward expects to adopt ASU 2016-13 in fiscal year 2021. Woodward does not expect the application of the CECL impairment model to have a significant impact on Woodward’s allowance for uncollectible amounts for accounts receivable and notes receivable from municipalities and unbilled receivables. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief,” which provides transition relief for entities adopting ASU 2016-13. Specifically, ASU 2019-05 amends ASU 2016-13 to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-05 are effective for fiscal years beginning after December 15, 2019, including interim periods therein. Woodward expects to adopt ASU 2019-05 in fiscal year 2021. Woodward does not expect to elect the fair value option for its financial instruments upon the adoption of both ASU 2016-13 and ASU 2019-05. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and has subsequently issued supplemental and/or clarifying ASUs (collectively “ASC 842”). The purpose of ASC 842 is to increase transparency and comparability among organizations by recognizing lease right-of-use (“ROU”) assets and lease liabilities for substantially all leases on the balance sheet, and provide additional disclosure information about leasing arrangements. ASC 842 modifies the definition of a lease to clarify that an arrangement contains a lease when such arrangement conveys the right to control the use of an identified asset. Woodward adopted ASC 842 on October 1, 2019 using the modified retrospective transition method under which prior periods were not restated and the cumulative effect of initial adoption was recognized in retained earnings on the date of initial application, October 1, 2019. Consequently, financial information will not be updated and the disclosures required under ASC 842 will not be provided for dates and periods before October 1, 2019. The new guidance under ASC 842 provides a number of optional practical expedients in transition. Woodward elected the "package of practical expedients," which allowed Woodward not to reassess under the new guidance our prior conclusions about lease identification, lease classification and initial direct costs. Accordingly, Woodward carried forward its existing conclusions on lease classification for leases existing as of the adoption date. Additionally, embedded lease arrangements were assessed under the prior guidance of ASC 840 lease framework for transition on October 1, 2019 in accordance with the leases policy outlined below. The new lease accounting guidance under ASC 842 has been applied for all arrangements commencing or modified on or after October 1, 2019. Woodward also elected as a practical expedient to not record qualifying short-term leases with a term of twelve months or less (inclusive of reasonably certain renewals and termination options) at the inception of the contract on the balance sheet and instead recognizes those lease payments in the Condensed Consolidated Statements of Comprehensive Earnings on a straight-line basis over the lease term. This practical expedient may not be applied to short-term leases that contain a purchase option that is reasonably certain of exercise. Woodward has also elected the practical expedient to not separate lease and non-lease components for its lease arrangements when it is the lessee. The application of this practical expedient is discussed at Note 5, Leases . The adoption of ASC 842 resulted in recognition of additional operating ROU assets and operating lease liabilities on the Condensed Consolidated Balance Sheets as of October 1, 2019 of $ 18,894 and $ 18,851 , respectively. See Note 5, Leases , for disclosures and further information related to implementation and adoption of ASC 842. |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2019 | |
Revenue | |
Revenue | Note 3. Revenue Sales of Products Revenue from manufactured products and from maintenance, repair and overhaul (“MRO”) represented 87 % and 12 %, respectively, of Woodward’s net sales for the three-months ended December 31, 2019, and 87 % and 11 %, respectively, of Woodward’s net sales for the three-months ended December 31, 2018. The amount of revenue recognized as point in time or over time follows: Three-Months Ended December 31, 2019 Three-Months Ended December 31, 2018 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Point in time $ 187,515 $ 167,942 $ 355,457 $ 164,014 $ 172,162 $ 336,176 Over time 286,410 78,488 364,898 228,873 87,762 316,635 Total net sales $ 473,925 $ 246,430 $ 720,355 $ 392,887 $ 259,924 $ 652,811 Contract assets Customer receivables include amounts billed and currently due from customers as well as unbilled amounts (contract assets) and are included in “Accounts receivable” in Woodward’s Condensed Consolidated Balance Sheets. Amounts are billed in accordance with contractual terms, which are generally tied to shipment of the products to the customer, or as work progresses in accordance with contractual terms. Billed accounts receivable are typically due within 60 days. Unbilled amounts arise when the timing of billing differs from the timing of revenue recognized, such as when contract provisions require revenue to be recognized over time rather than at a point in time. Unbilled amounts primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to payment in accordance with contractual terms. Unbilled amounts are recorded as a contract asset when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Woodward’s contracts with customers generally have no financing components. Accounts receivable consisted of the following: December 31, 2019 September 30, 2019 Billed receivables Trade accounts receivable $ 354,152 $ 381,942 Other (Chinese financial institutions) 16,635 42,171 Less: Allowance for uncollectible amounts ( 3,813 ) ( 7,908 ) Net billed receivables 366,974 416,205 Current unbilled receivables (contract assets), net 205,469 175,324 Total accounts receivable, net $ 572,443 $ 591,529 In addition, as of December 31, 2019 “Other assets” on the Condensed Consolidated Balance Sheets includes $ 1,562 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $ 1,573 as of September 30 , 2019. Contract liabilities Contract liabilities consisted of the following: December 31, 2019 September 30, 2019 Current Noncurrent Current Noncurrent Deferred revenue from material rights from GE joint venture formation $ 8,186 $ 229,011 $ 8,317 $ 230,588 Deferred revenue from advance invoicing and/or prepayments from customers 4,200 139 4,554 141 Liability related to customer supplied inventory 10,298 - 13,396 - Deferred revenue from material rights related to engineering and development funding 2,277 111,858 1,624 106,436 Net contract liabilities $ 24,961 $ 341,008 $ 27,891 $ 337,165 Woodward recognized revenue of $ 3,970 in the three-months ended December 31, 2019 from contract liabilities balances recorded as of October 1, 2019, compared to $ 9,760 in the three-months ended December 31, 2018 from contract liabilities balances recorded as of October 1, 2018. Remaining performance obligations Remaining performance obligations related to the aggregate amount of the total contract transaction price of firm orders for which the performance obligation has not yet been recognized in revenue as of December 31, 2019 was $ 1,562,813 , compared to $ 1,527,437 as of September 30, 2019 the majority of which relate to Woodward’s Aerospace segment. Woodward expects to recognize almost all of these remaining performance obligations within two year s after December 31, 2019. Remaining performance obligations related to material rights that have not yet been recognized in revenue as of December 31, 2019 was $ 434,437 , of which $ 9,781 is expected to be recognized in the remainder of fiscal year 2020 , $ 11,204 is expected to be recognized in fiscal year 2021 , and the balance is expected to be recognized thereafter. Woodward expects to recognize revenue from performance obligations related to material rights over the life of the underlying programs, which may be as long as forty year s. Disaggregation of Revenue Woodward designs, produces and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in markets throughout the world. Woodward reports financial results for each of its Aerospace and Industrial reportable segments. Woodward further disaggregates its revenue from contracts with customers by primary market and by geographical area as Woodward believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Revenue by primary market for the Aerospace reportable segment was as follows: Three-Months Ended December 31, 2019 2018 Commercial OEM $ 158,666 $ 140,508 Commercial aftermarket 125,928 111,348 Defense OEM 140,926 101,836 Defense aftermarket 48,405 39,195 Total Aerospace segment net sales $ 473,925 $ 392,887 Revenue by primary market for the Industrial reportable segment was as follows: Three-Months Ended December 31, 2019 2018 Reciprocating engines $ 174,653 $ 196,130 Industrial turbines 51,500 49,512 Renewables 20,277 14,282 Total Industrial segment net sales $ 246,430 $ 259,924 The customers who account for approximately 10% or more of net sales to each of Woodward’s reportable segments for the three-months ended December 31, 2019 are as follows: Customer Aerospace The Boeing Company, General Electric Company, United Technologies Corporation Industrial Rolls-Royce PLC, Weichai Westport Net sales by geographic area, as determined based on the location of the customer, were as follows: Three-Months Ended December 31, 2019 Three-Months Ended December 31, 2018 Aerospace Industrial Consolidated Aerospace Industrial Consolidated United States $ 363,912 $ 51,092 $ 415,004 $ 286,745 $ 49,892 $ 336,637 Germany 17,278 51,438 68,716 12,749 63,364 76,113 Europe, excluding Germany 38,987 50,501 89,488 39,612 59,348 98,960 China 10,212 53,876 64,088 15,638 50,251 65,889 Asia, excluding China 6,981 31,912 38,893 8,368 29,167 37,535 Other countries 36,555 7,611 44,166 29,775 7,902 37,677 Total net sales $ 473,925 $ 246,430 $ 720,355 $ 392,887 $ 259,924 $ 652,811 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share | |
Earnings Per Share | Note 4. 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: Three-Months Ended December 31, 2019 2018 Numerator: Net earnings $ 53,373 $ 49,120 Denominator: Basic shares outstanding 61,991 61,818 Dilutive effect of stock options and restricted stock 2,682 2,241 Diluted shares outstanding 64,673 64,059 Income per common share: Basic earnings per share $ 0.86 $ 0.79 Diluted earnings per share $ 0.83 $ 0.77 The following stock option grants were outstanding during the three-months ended December 31, 2019 and 2018, but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive. Three-Months Ended December 31, 2019 2018 Options 653 1,426 Weighted-average option price $ 104.40 $ 79.22 The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following: Three-Months Ended December 31, 2019 2018 Weighted-average treasury stock shares held for deferred compensation obligations 213 206 |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 5. Leases Woodward adopted ASC 842 on October 1, 2019 using the modified retrospective transition method under which prior periods were not restated and the cumulative effect of initial adoption was recognized in retained earnings on the date of initial application, October 1, 2019. Woodward is primarily a lessee in lease arrangements but has some embedded lessor arrangements. Lessee arrangements 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, maintenance costs, or other similar costs in addition to rental payments. Woodward has also entered into finance leases for equipment with terms in excess of one year under agreements that expire at various dates. Woodward determines if an arrangement for the use of property, plant and equipment is a lease at inception. Under ASC 842, an arrangement contains a lease if the arrangement conveys the right to control the use of plant, property or equipment (identified asset) for a period of time in exchange for consideration. For arrangements determined to be a lease under this criteria, Woodward assesses lease classification as either an operating or finance lease whenever the new lease is executed or an existing lease requires reclassification based on changes in the lease’s terms and conditions. Lease classification impacts the treatment of the lease on the income statement and amortization of the lease ROU asset. In determining lease classification, Woodward considers both qualitative and quantitative factors when performing the following classification tests: (i) transfer of ownership at the end of the lease term, (ii) existence of a bargain purchase option, (iii) the lease term, (iv) minimum lease payments, and (v) whether the leased asset is so customized to Woodward’s needs as to effectively have utility only to Woodward. Woodward applies the following thresholds when performing the classification tests: (i) 75% or greater is considered to be the majority of the asset’s remaining economic life, (ii) the exercise of the renewal option or the non-exercise of a termination option is reasonably certain if it has at least a 75% likelihood of occurring (in arriving at the percentage likelihood, Woodward considers its plans as to whether to renew the lease and the economic factors that may impact the decision to renew and Woodward will include a renewal option or non-exercise of a termination option in the lease term only if the Company has an economic incentive to extend the lease), (iii) the present value of the future minimum lease payments is considered to exceed substantially all of the fair value of the underlying asset if the payments exceed 90% of the asset’s fair value. Woodward considers the exercise of the option to purchase a leased asset as reasonably certain if it has at least a 75% likelihood of being exercised or, among other things, a significant economic incentive exists for exercising the option. Lease components are elements of an arrangement that provide the customer with the right to use an identified asset. The right to use an underlying asset is a separate lease component if: (i) the lessee can benefit from the right to use the underlying asset either on its own or together with other resources that are readily available, and (ii) the right to use the underlying asset is neither highly dependent on nor highly interrelated with other rights to use other underlying assets in the arrangement. Woodward may enter into lessee arrangements that contain a lease component but also contain other non-lease components. When the non-lease component in an arrangement relates to inventory, as inventory is outside the scope of ASC 842, the payment Woodward makes for inventory is accounted for and expensed separately and apart from lease expense, rather than as a lease component. For all other classes of underlying assets in lessee arrangements, Woodward has elected to combine lease and non-lease components and to account for them as lease expense. ROU assets represent Woodward’s right to use an underlying asset for the lease term, and lease liabilities represent Woodward’s obligation to make lease payments arising from the lease. ROU assets include any initial direct costs (incremental costs of a lease that would not have been incurred had the lease not been executed) and lease prepayments made, and are reduced by any lease incentives received. Leases with an initial term of 12 months or less and leases with only variable lease payments are not recorded on the balance sheet. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the remaining fixed lease payments over the lease term. In determining the estimated present value of lease payments, Woodward discounts the fixed lease payments using the rate implicit in the agreement or, if the implicit rate is not known, using the incremental borrowing rate. As of December 31, 2019, none of Woodward’s leases have been discounted using the implicit rate as it could not be readily determined. Woodward’s incremental borrowing rate is based on the information available at the lease commencement date, with consideration given to Woodward’s recent debt issuances as well as publicly available data for instruments with similar characteristics. When measuring lease liabilities, Woodward only uses lease payments remaining throughout the remainder of the lease term and only includes the amount that is probable of being owed under significant residual value guarantees, if any. Lease liabilities are subject to the same considerations as Woodward’s debt instruments in classifying them as current or noncurrent in the Condensed Consolidated Balance Sheets. For operating leases, lease expense is recognized over the expected lease term and classified as a cost of goods sold or selling, general and administrative expense based on the nature of the underlying leased asset. For finance leases, the ROU asset is recognized over the shorter of the useful life of the asset, consistent with Woodward’s normal depreciation policy, or the lease term, and is classified as a cost of goods sold, selling, general and administrative expense, or research and development expense, based on the nature and use of the underlying leased asset. Interest expense is recorded in connection with the finance lease liability using the effective interest rate method and is classified as interest expense. Certain of Woodward’s operating lease agreements include variable payments that are passed through by the landlord, such as insurance, taxes, and common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. Pass-through charges, payments due to changes in usage of the asset, and payments due to changes in indexation are included within variable rent expense and are recognized in the period in which the variable obligation for the payments was incurred. None of Woodward’s lease agreements contain significant residual value guarantees, restrictions, or covenants. As of December 31, 2019, Woodward has not entered into any lease arrangements that have not yet commenced but would create significant rights and obligations. Woodward does not have any lease transactions between related parties. Lease-related assets and liabilities follows: Classification on the Condensed Consolidated Balance Sheets December 31, 2019 Assets: Operating lease assets Other assets $ 20,293 Finance lease assets Property, plant and equipment, net 1,519 Total lease assets 21,812 Current liabilities: Operating lease liabilities Accrued liabilities 4,804 Finance lease liabilities Current portion of long-term debt 1,598 Noncurrent liabilities: Operating lease liabilities Other liabilities 16,305 Finance lease liabilities Long-term debt, less current portion 2,339 Total lease liabilities $ 25,046 In the first quarter of fiscal year 2020, Woodward determined that the approved plan to divest of the renewable power systems portfolio (see Note 10, Impairment of assets held for sale ) represented a triggering event requiring the long-lived assets attributable to the renewable power systems portfolio be assessed for impairment. Given the current facts and circumstances, Woodward determined that the remaining value of the ROU assets of the renewable power systems portfolio were not recoverable and a $ 1,136 non-cash impairment charge was recorded in the first quarter of fiscal year 2020. Supplemental lease-related information follows: December 31, 2019 Weighted average remaining lease term Operating leases 6.1 years Finance leases 2.6 years Weighted average discount rate Operating leases 3.3 % Finance leases 3.0 % Lease-related expenses were as follows: Three-Months Ended December 31, 2019 Operating lease expense $ 1,519 Amortization of finance lease assets 147 Interest on finance lease liabilities 20 Variable lease expense 307 Short-term lease expense 175 Sublease income (1) ( 125 ) Total lease expense $ 2,043 (1) Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois. Lease-related supplemental cash flow information for the three-months ended December 31, 2019 follows: Three-Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1,254 Operating cash flows for finance leases 20 Financing cash flows for finance leases 439 Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases 3,540 Finance leases 1,211 Maturities of lease liabilities as of December 31, 2019 follows: Year Ending September 30: Operating Leases Finance Leases 2020 (remaining) 4,159 1,264 2021 4,531 1,678 2022 3,552 734 2023 2,840 321 2024 2,171 81 Thereafter 6,127 - Total lease payments 23,380 4,078 Less: imputed interest ( 2,271 ) ( 141 ) Total lease obligations $ 21,109 $ 3,937 Comparable future minimum rental payment under operating and finance leases that have initial or remaining non-cancelable lease terms in excess of one year as previously disclosed under ASC 840 as of September 30, 2019 follows: Year Ending September 30: Operating Leases Finance Leases 2020 (full twelve months) $ 6,667 $ 213 2021 5,119 98 2022 3,823 33 2023 2,899 3 2024 2,378 - Thereafter 6,033 - Total minimum lease payments under ASC 840 $ 26,919 $ 347 Total rental payments charged to expense for operating leases under ASC 840 were $ 2,287 in the three-months ended December 31, 2018. Lessor arrangements Woodward enters into various customer supply agreements, customer sales agreements, and/or product development agreements (collectively, “manufacturing contracts”) with customers to provide highly specialized products. In certain of these manufacturing contracts, the property, plant and equipment used to manufacture the products is used only for the benefit of one customer. This is primarily driven by the demand for customer products, which can be so great that it is economically beneficial to dedicate the plant and equipment to just one customer. Additionally, this can be driven by the set-up of the property, plant and equipment required to produce specified product and/or the specialized nature of the property, plant and equipment such that it is not economically feasible to use the plant, property and equipment to manufacture other products. Woodward has assessed its manufacturing contracts and concluded that certain of the contracts for the manufacture of customer products met the criteria to be considered a leasing arrangement (“embedded leases”) with Woodward as the lessor. The specific manufacturing contracts that met the criteria were those that utilized Woodward property, plant and equipment and which is substantially (more than 90%) dedicated to the manufacturing of the product(s) for a single customer. Woodward has dedicated manufacturing lines with two of its customers representing embedded leases, both of which qualified as operating leases with undefined quantities of future customer purchase commitments. Woodward’s customers for which embedded lessor arrangements have been identified do not have contractual long-term commitments to purchase specified quantities of related products or services from Woodward, although Woodward expects to continue selling to such customers into the future and is presently unaware of any economic penalties, or other factors, which would further define a lease term on such arrangements. Although Woodward expects to allocate some portion of future net sales to these customers to embedded lessor arrangements, it cannot provide expected future undiscounted lease payments from property, plant and equipment leased to customers as of December 31, 2019. If in the future customers reduce purchases of related products from Woodward, the Company believes it will derive additional value from the underlying equipment by repurposing its use to support other customer arrangements. Woodward will continue to assess its future manufacturing contracts and monitor its current manufacturing contracts for changes which may trigger additional embedded leases under ASC 842. A manufacturing contract with a customer that contains an embedded lease will generally include lease components, such as the equipment, and non-lease components, such as other inputs used in the manufacture of the customer’s product. In evaluating its embedded leases, Woodward first identified and separated its lease and non-lease components. Woodward has determined that for its current embedded leases, the property, plant and equipment used by Woodward represents lease components and all other inputs that Woodward uses to develop, manufacture and sell the customer product represents non-lease components. Woodward allocates revenue from contracts with customers between lease and non-lease components by imputing a reasonable rate of return based on the estimated fair value of the dedicated property, plant and equipment. Under ASC 842, consistent with the previous guidance, Woodward will continue to recognize property, plant and equipment in embedded lessor arrangements on its Condensed Consolidated Balance Sheets in property, plant and equipment, net. The property, plant and equipment will continue to be depreciated as normal. Woodward recognizes revenue from the embedded lessor arrangements based on the value of the underlying dedicated property, plant, and equipment. There are no fixed payments that the customers under the embedded lessor arrangements are obligated to pay. Therefore, all the customer payments under the embedded lessor arrangements are considered variable with the associated leasing revenue recognized when the revenue from underlying product sale related to variable lease payment is recognized. Revenue from contracts with customers that included embedded operating leases, which is included in “Net sales” at the Condensed Consolidated Statements of Other Comprehensive Earnings, was $ 1,564 for the three-months ended December 31, 2019. Other than the embedded leases identified, Woodward is not the lessor in any other leasing arrangements. None of the embedded leases identified by Woodward qualify as a sales-type or direct finance lease. None of the operating leases for which Woodward is the lessor include options for the lessee to purchase the underlying asset at the end of the lease term or residual value guarantees, nor are any such operating leases with related parties. The carrying amount of property, plant and equipment leased to others through embedded leasing arrangements, included in “Property, plant and equipment, net” at the Condensed Consolidated Balance Sheets, follows: December 31, 2019 Property, plant and equipment leased to others through embedded leasing arrangements $ 38,612 Less accumulated depreciation ( 21,618 ) Property, plant and equipment leased to others through embedded leasing arrangements, net $ 16,994 |
Joint Venture
Joint Venture | 3 Months Ended |
Dec. 31, 2019 | |
Joint Venture | |
Joint Venture | Note 6. Joint venture On January 4, 2016 , Woodward and General Electric Company (“GE”), acting through its GE Aviation business unit, consummated the formation of a strategic joint venture between Woodward and GE (the “JV”) to develop, manufacture and support fuel systems for specified existing and all future GE commercial aircraft engines that produce thrust in excess of fifty thousand pounds. Unamortized deferred revenue from material rights in connection with the JV formation included: December 31, 2019 September 30, 2019 Accrued liabilities $ 8,186 $ 8,317 Other liabilities 229,011 230,588 Amortization of the deferred income (material right) recognized as an increase to sales was $ 1,708 for the three-months ended December 31, 2019 and $ 1,777 for the three-months ended December 31, 2018. Woodward and GE jointly manage the JV and any significant decisions and/or actions of the JV require the mutual consent of both parties. Neither Woodward nor GE has a controlling financial interest in the JV, but both Woodward and GE do have the ability to significantly influence the operating and financial decisions of the JV. Therefore, Woodward is accounting for its 50 % ownership interest in the JV using the equity method of accounting. The JV is a related party to Woodward. For the three-months ended December 31, 2019 and 2018, other income related to Woodward’s equity interest in the earnings of the JV: Three-Months Ended December 31, 2019 2018 Other income $ 3,212 $ 1,465 For the three-months ended December 31, 2019 and 2018, cash distributions, recognized in Net cash provided by operating activities on the Consolidated Statements of Cash Flows, from the JV include: Three-Months Ended December 31, 2019 2018 Cash distributions $ 3,000 $ 4,500 For the three-months ended December 31, 2019 and 2018 net sales to the JV were as follows: Three-Months Ended December 31, 2019 2018 Net sales (1) $ 14,878 $ 12,833 (1) Woodward recorded a reduction to sales of $ 7,234 for the three-months ended December 31, 2019 related to royalties paid to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $ 9,182 for the three-months ended December 31, 2018. The Condensed Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows: December 31, 2019 September 30, 2019 Accounts receivable $ 5,442 $ 5,906 Accounts payable 2,504 4,270 Other assets 7,755 7,543 Woodward recognized revenue for the JV’s engineering and development projects as an increase to contract liabilities in “Other liabilities” and costs recognized as costs to fulfill a contract as an increase in “Other assets.” Woodward’s contract liabilities included in “Other liabilities” as of December 31, 2019 were $ 71,364 compared to $ 69,079 as of fiscal year ended September 30, 2019. Woodward’s costs to fulfill a contract included in “Other assets” were $ 71,364 as of December 31, 2019 and $ 69,079 as of fiscal year ended September 30, 2019. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
Financial Instruments and Fair Value Measurments | |
Financial Instruments and Fair Value Measurements | Note 7. Financial instruments and fair value measurements Financial assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are categorized based upon a fair value hierarchy established by U.S. GAAP, which prioritizes the inputs used to measure fair value into the following levels: Level 1: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. Level 2: Quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data. Level 3: Inputs that 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 are significant to the valuation of the instruments. The table below presents information about Woodward’s financial assets that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value. At December 31, 2019 At September 30, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Cash $ 85,366 $ - $ - $ 85,366 $ 52,971 $ - $ - $ 52,971 Investments in reverse repurchase agreements 271 - - 271 886 - - 886 Investments in term deposits with foreign banks 62,371 - - 62,371 45,216 - - 45,216 Equity securities 23,636 - - 23,636 20,504 - - 20,504 Net assets held for sale (Note 10) - - 11,950 11,950 - - - - Cross currency interest rate swaps - 13,474 - 13,474 - 24,758 - 24,758 Total financial assets $ 171,644 $ 13,474 $ 11,950 $ 197,068 $ 119,577 $ 24,758 $ - $ 144,335 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 recognized in earnings, and are included in “Cash and cash equivalents” in the Condensed Consolidated Balance Sheets. 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. Investments in term deposits with foreign banks: Woodward’s foreign subsidiaries sometimes invest excess cash in various highly liquid financial instruments that Woodward believes are with creditworthy financial institutions. Such investments are reported in “Cash and cash equivalents” at fair value, with realized gains from interest income recognized in earnings. The carrying value of Woodward’s investments in term deposits with foreign banks are considered equal to the fair value given the highly liquid nature of the investments. 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” on the Condensed Consolidated Statements of Earnings. The trading securities are included in “Other assets” in the Condensed Consolidated Balance Sheets. 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. Cross-currency interest rate swaps: Woodward holds cross-currency interest rate swaps, which are accounted for at fair value. The swaps in an asset position are included in “Other assets,” and swaps in a liability position are included in “Other liabilities” in the Condensed Consolidated Balance Sheets. The fair values of Woodward’s cross-currency interest rate swaps are determined using a market approach that is based on observable inputs other than quoted market prices, including contract terms, interest rates, currency rates, and other market factors. As of December 31, 2019, swaps in an asset position in the amount of $ 13,474 were included in “Other assets” in the Condensed Consolidated Balance Sheets, compared to $ 24,758 as of September 30, 2019. As of December 31, 2019 and September 30, 2019, there were no swaps in a liability position that were included in “Other liabilities” in the Condensed Consolidated Balance Sheets. Trade accounts receivable, accounts payable, and short-term borrowings 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 Condensed Consolidated Balance Sheets were as follows: At December 31, 2019 At September 30, 2019 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 $ 12,868 $ 12,020 $ 13,100 $ 12,346 Investments in short-term time deposits 2 13,371 13,386 13,468 13,509 Liabilities: Long-term debt 2 $ ( 887,834 ) $ ( 833,172 ) $ ( 928,618 ) $ ( 867,377 ) 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 and Woodward’s development of a new campus at its corporate headquarters in Fort Collins, Colorado, Woodward received long-term notes from municipalities within the states of Illinois and Colorado. 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 Woodward 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 1.8 % at December 31, 2019 and 1.7 % at September 30, 2019. From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. The fair value of the investments in short-term time deposits was estimated based on a model that discounted future principal and interest payments to be received at an interest rate available to the foreign subsidiary entering into the investment for similar short-term time deposits of similar maturity. This was determined to be 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 short-term time deposits were 4.9 % at December 31, 2019 and 5.7 % at September 30, 2019. 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 Woodward 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 rate used to estimate the fair value of long-term debt was 2.5 % at both December 31, 2019 and September 30, 2019. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 8. Derivative instruments and hedging activities Derivative instruments not designated or qualifying as hedging instruments In May 2018, Woodward entered into cross-currency interest rate swap agreements that synthetically convert $ 167,420 of floating-rate debt under Woodward’s then existing revolving credit agreement to Euro denominated floating-rate debt in conjunction with the L’Orange acquisition (the “Floating-Rate Cross-Currency Swap”). Also in May 2018, Woodward entered into cross-currency interest rate swap agreements that synthetically convert an aggregate principal amount of $ 400,000 of fixed-rate debt associated with the 2018 Note Purchase Agreement (as defined in Note 15, Credit facilities short-term borrowings and long-term debt ) to Euro denominated fixed-rate debt (the “Fixed-Rate Cross-Currency Swaps”). The cross-currency interest rate swaps, which effectively reduce the interest rate on the underlying fixed and floating-rate debt under the 2018 Notes (as defined in Note 15, Credit facilities short-term borrowings and long-term debt ) and Woodward’s then existing revolving credit agreement, respectively, is recorded as a reduction to “Interest expense” in Woodward’s Condensed Consolidated Statements of Earnings. Derivatives instruments in fair value hedging relationships Concurrent with the entry into the Floating-Rate Cross-Currency Swap, a corresponding Euro denominated intercompany loan receivable with identical terms and notional amount as the underlying Euro denominated floating-rate debt, with a reciprocal cross-currency interest rate swap, was entered into by Woodward Barbados Financing SRL (“Barbados”), a wholly owned subsidiary of Woodward, and is designated as a fair value hedge under the criteria prescribed in ASC Topic 815, “ Derivatives and Hedging ” (“ASC 815”). The objective of the derivative instrument is to hedge against the foreign currency exchange risk attributable to the spot remeasurement of the Euro denominated intercompany loan. Only the change in the fair value related to the cross-currency basis spread, or excluded component, of the derivative instrument is recognized in accumulated other comprehensive (losses) earnings (“accumulated OCI”). The remaining change in the fair value of the derivative instrument is recognized in foreign currency transaction gain or loss included in “Selling, general and administrative costs” in Woodward’s Condensed Consolidated Statements of Earnings. The change in the fair value of the derivative instrument in foreign currency transaction gain or loss offsets the change in the spot remeasurement of the intercompany Euro denominated loan. Hedge effectiveness is assessed based on the fair value changes of the derivative instrument, after excluding any fair value changes related to the cross-currency basis spread. The initial cost of the cross-currency basis spread is recorded in earnings each period through the swap accrual process. There are no credit-risk-related contingent features associated with the floating-rate cross-currency interest rate swap. Derivative instruments in cash flow hedging relationships In conjunction with the entry into the Fixed-Rate Cross-Currency Swaps, five corresponding intercompany loans receivable, with identical terms and amounts of each tranche of the underlying aggregate principal amount of $ 400,000 of fixed-rate debt, and reciprocal cross-currency interest rate swaps were entered into by Barbados, which are designated as cash flow hedges under the criteria prescribed in ASC 815. The objective of these derivative instruments is to hedge the risk of variability in cash flows attributable to the foreign currency exchange risk of cash flows for future principal and interest payments associated with the Euro denominated intercompany loans over a fifteen-year period. Changes in the fair values of the derivative instruments are recognized in accumulated OCI and reclassified to foreign currency transaction gain or loss included in “Selling, general and administrative costs” in Woodward’s Condensed Consolidated Statements of Earnings. Reclassifications out of accumulated OCI of the change in fair value occur each reporting period based upon changes in the spot rate remeasurement of the Euro denominated intercompany loans, including associated interest. Hedge effectiveness is assessed based on the fair value changes of the derivative instruments and deemed to be highly effective in offsetting exposure to variability in foreign exchange rates. There are no credit-risk-related contingent features associated with these fixed-rate cross-currency interest rate swaps. Derivatives instruments in net investment hedging relationships On September 23, 2016 , Woodward and Woodward International Holding B.V., a wholly owned subsidiary of Woodward organized under the laws of The Netherlands (the “BV Subsidiary”), each entered into a note purchase agreement (the “2016 Note Purchase Agreement”) relating to the sale by Woodward and the BV Subsidiary of an aggregate principal amount of € 160,000 of senior unsecured notes in a series of private placement transactions. Woodward issued € 40,000 aggregate principal amount of Woodward’s Series M Senior Notes due September 23, 2026 (the “Series M Notes”). Woodward designated the Series M Notes as a hedge of a foreign currency exposure of Woodward’s net investment in its Euro denominated functional currency subsidiaries. Related to the Series M Notes, included in foreign currency translation adjustments within total comprehensive (losses) earnings are net foreign exchange losses of $ 1,045 for the three-months ended December 31, 2019, compared to net foreign exchange gains of $ 649 for the three-months ended December 31, 2018. Impact of derivative instruments designated as qualifying hedging instruments The following table discloses the impact of derivative instruments designated as qualifying hedging instruments on Woodward’s Condensed Consolidated Statements of Earnings: Three-Months Ended December 31, 2019 Derivatives in: Location 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 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ 2,276 $ 3,598 $ 2,683 Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses 8,991 7,696 8,991 Treasury lock agreement designated as cash flow hedge Interest expense ( 18 ) - ( 18 ) $ 11,249 $ 11,294 $ 11,656 Three-Months Ended December 31, 2018 Derivatives in: Location 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 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ ( 2,389 ) $ ( 2,505 ) $ ( 2,252 ) Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses ( 5,556 ) ( 16,058 ) ( 5,556 ) Treasury lock agreement designated as cash flow hedge Interest expense ( 18 ) - ( 18 ) $ ( 7,963 ) $ ( 18,563 ) $ ( 7,826 ) 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 OCI, were net losses of $ 4,642 as of December 31, 2019 and $ 5,004 as of September 30, 2019. |
Supplemental Statement of Cash
Supplemental Statement of Cash Flows Information | 3 Months Ended |
Dec. 31, 2019 | |
Supplemental Statement of Cash Flows Information | |
Supplemental Statement of Cash Flows Information | Note 9. Supplemental statement of cash flows information Three-Months Ended December 31, 2019 2018 Interest paid, net of amounts capitalized $ 10,749 $ 16,754 Income taxes paid 7,086 15,858 Income tax refunds received 12 444 Non-cash activities: Purchases of property, plant and equipment on account 2,551 4,580 Impact of the adoption of ASC 606 - 38,700 Impact of the adoption of ASC 842 (Note 5) 255 - Impact of the adoption of ASU 2016-16 - 1,005 |
Impairment of Assets Held for S
Impairment of Assets Held for Sale | 3 Months Ended |
Dec. 31, 2019 | |
Impairment Of Assets Held For Sale [Abstract] | |
Impairment of Assets Held for Sale | Note 10. Impairment of assets held for sale In the first quarter of fiscal year 2020, Woodward’s board of directors approved a plan to divest Woodward’s renewable power systems business and related other businesses (the “renewable power systems portfolio”). Woodward determined that the approved plan to divest the renewable power systems portfolio represented a triggering event requiring the long-lived assets attributable to the renewable power systems portfolio be assessed for impairment. Given the current facts and circumstances, Woodward determined that the value of the long-lived assets of the renewable power systems portfolio, including goodwill, intangible assets, ROU assets and property, plant, and equipment, were not recoverable and a $ 23,464 non-cash impairment charge was recorded in the first quarter of fiscal year 2020. The non-cash impairment charge removed all the goodwill, intangible assets, ROU assets and property, plant, and equipment associated with the renewable power systems portfolio from the Condensed Consolidated Balance Sheets as of December 31, 2019. Further, on the approval of the divestiture plan and subsequent marketing of the renewable power systems portfolio, Woodward determined that based on the current market conditions, the carrying value of the renewable power systems’ remaining held for sale net assets disposal group exceeded the fair value. As a result, Woodward recorded a valuation allowance to reduce the carrying value of the net asset disposal group to its fair value. In determining the amount by which the carrying value of the renewable power systems’ remaining net asset disposal group exceeded the fair value, Woodward considered primarily the market value of the assets held for sale based on negotiations it had entered into with affiliates of the AURELIUS Group for the sale of the majority of the net asset group. On January 31, 2020, Woodward entered into definitive agreements to sell the majority of the renewable power systems portfolio to affiliates of the AURELIUS Group for $ 23,400 , subject to customary purchase price adjustments (see Note 24, Subsequent events ). The $ 11,950 estimated fair value of the net assets held for sale as shown in the table below was based on the estimated selling price pursuant to the definitive agreements reduced by the estimated working capital adjustments, transaction costs, and anticipated losses on assets held for sale that were not included in the net assets to be sold to the AURELIUS Group, which are level 3 inputs as defined by the U.S. GAAP far value hierarchy. Based on this estimate of the fair market value of the renewable powers systems portfolio net asset disposal group, Woodward recorded a valuation allowance against the assets and liabilities held for sale as follows: December 31, 2019 Assets: Accounts receivable $ 18,140 Inventories 17,929 Other current assets 363 Other assets 142 Total assets 36,574 Valuation, allowance ( 14,438 ) Total assets, net 22,136 Liabilities: Accounts payable 1,962 Accrued liabilities 7,733 Other liabilities 491 Total liabilities $ 10,186 The total assets held for sale, net of valuation allowance, associated with the renewable power systems portfolio in the amount of $ 22,136 are included in “Other current assets” at the Condensed Consolidated Balance Sheet as of December 31, 2019. The total liabilities held for sale associated with the renewable power systems portfolio in the amount of $ 10,186 are included in “Accrued liabilities” at the Condensed Consolidated Balance Sheet as of December 31, 2019. The total non-cash charge of $ 37,902 consisting of the valuation allowance recognized for the renewable power systems portfolio assets held for sale and the charge recognized for the impairment of the goodwill, intangibles, ROU assets and property, plant and equipment associated with the renewable power systems portfolio has been recorded as “Impairment of assets held for sale” in the Condensed Consolidated Statements of Earnings for the three-months ended December 31, 2019. [Insert Table X] |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Inventories | Note 11. Inventories December 31, September 30, 2019 2019 Raw materials $ 142,911 $ 134,878 Work in progress 136,873 133,885 Component parts (1) 285,792 287,128 Finished goods 72,483 59,051 Customer supplied inventory 10,298 13,396 On-hand inventory for which control has transferred to the customer ( 128,091 ) ( 111,502 ) $ 520,266 $ 516,836 (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 | 3 Months Ended |
Dec. 31, 2019 | |
Property, Plant, and Equipment | |
Property, Plant and Equipment | Note 12. Property, plant, and equipment December 31, September 30, 2019 2019 Land and land improvements $ 89,483 $ 94,976 Buildings and building improvements 575,988 587,541 Leasehold improvements 17,810 17,446 Machinery and production equipment 733,995 731,159 Computer equipment and software 123,187 124,201 Office furniture and equipment 40,002 39,934 Other 19,162 19,346 Construction in progress 49,228 57,624 1,648,855 1,672,227 Less accumulated depreciation ( 615,277 ) ( 613,452 ) Property, plant, and equipment, net $ 1,033,578 $ 1,058,775 In the second quarter of fiscal year 2018, the Company announced its decision to relocate its Duarte, California operations to the Company’s newly renovated Drake Campus in Fort Collins, Colorado, and in fiscal year 2019, Woodward finalized the relocation. On December 30, 2019 the Company closed on the sale of one of two parcels of real property at Woodward’s former Duarte operations and recorded a pre-tax gain on sale of assets of $ 13,522 (see Note 18, Other (income) expense, net ). The carrying value of the remaining parcel of Duarte real property is $ 2,520 as of December 31, 2019, all of which the Company has identified as an asset held for sale and is included in “Land and land improvements”. The asset held for sale is included in unallocated corporate property, plant, and equipment. Based on an existing real property purchase agreement and current market conditions, the Company expects to record an additional gain on the subsequent sale of the remaining parcel of real property, which is expected to close by June 30, 2020. The Company assessed whether the decision to relocate from its Duarte facility could indicate a potential impairment of the assets at the Duarte facility and concluded that the assets were not impaired as of December 31, 2019. In the first quarter of fiscal year 2020, Woodward determined that the approved plan to divest of the renewable power systems portfolio (see Note 10, Impairment of assets held for sale ) represented a triggering event requiring the long-lived assets attributable to the renewable power systems portfolio be assessed for impairment. Given the current facts and circumstances, Woodward determined that the remaining value of the plant, property and equipment of the renewable power systems portfolio was not recoverable and a $ 13,158 non-cash impairment charge was recorded in the first quarter of fiscal year 2020. For the three-months ended December 31, 2019 and 2018, Woodward had depreciation expense as follows: Three-Months Ended December 31, 2019 2018 Depreciation expense $ 22,546 $ 21,169 For the three-months ended December 31, 2019 and 2018, Woodward capitalized interest that would have otherwise been included in interest expense of the following: Three-Months Ended December 31, 2019 2018 Capitalized interest $ 34 $ 227 |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill [Abstract] | |
Goodwill | Note 13. Goodwill September 30, 2019 Impairment Charges Effects of Foreign Currency Translation December 31, 2019 Aerospace $ 455,423 $ - $ - $ 455,423 Industrial 342,430 ( 8,777 ) 6,705 340,358 Consolidated $ 797,853 $ ( 8,777 ) $ 6,705 $ 795,781 Woodward tests goodwill for impairment during the fourth quarter of each fiscal year, and at any time there is an indication goodwill is more-likely-than-not impaired, commonly referred to as triggering events. Woodward’s fourth quarter of fiscal year 2019 impairment test resulted in no impairment. In the first quarter of fiscal year 2020, Woodward determined that the approved plan to divest of the renewable power systems portfolio (see Note 10, Impairment of assets held for sale ) represented a triggering event requiring the long-lived assets attributable to the renewable power systems portfolio be assessed for impairment. Given the current facts and circumstances, Woodward determined that the remaining value of the goodwill of the renewable power systems portfolio was not recoverable and an $ 8,777 non-cash impairment charge was recorded in the first quarter of fiscal year 2020. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net [Abstract] | |
Intangible Assets, Net | Note 14. Intangible assets, net December 31, 2019 September 30, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Intangible assets with finite lives: Customer relationships and contracts: Aerospace $ 281,683 $ ( 185,626 ) $ 96,057 $ 281,683 $ ( 181,995 ) $ 99,688 Industrial 411,436 ( 43,619 ) 367,817 407,683 ( 43,986 ) 363,697 Total $ 693,119 $ ( 229,245 ) $ 463,874 $ 689,366 $ ( 225,981 ) $ 463,385 Intellectual property: Aerospace $ - $ - $ - $ - $ - $ - Industrial 15,790 ( 15,513 ) 277 19,201 ( 18,705 ) 496 Total $ 15,790 $ ( 15,513 ) $ 277 $ 19,201 $ ( 18,705 ) $ 496 Process technology: Aerospace $ 76,371 $ ( 60,924 ) $ 15,447 $ 76,371 $ ( 59,913 ) $ 16,458 Industrial 87,500 ( 19,042 ) 68,458 92,820 ( 24,926 ) 67,894 Total $ 163,871 $ ( 79,966 ) $ 83,905 $ 169,191 $ ( 84,839 ) $ 84,352 Backlog: Aerospace $ - $ - $ - $ - $ - $ - Industrial 41,456 ( 41,456 ) - 40,500 ( 40,500 ) - Total $ 41,456 $ ( 41,456 ) $ - $ 40,500 $ ( 40,500 ) $ - Other intangibles: Aerospace $ - $ - $ - $ - $ - $ - Industrial 224 ( 118 ) 106 1,541 ( 1,249 ) 292 Total $ 224 $ ( 118 ) $ 106 $ 1,541 $ ( 1,249 ) $ 292 Intangible asset with indefinite life: Tradename: Aerospace $ - $ - $ - $ - $ - $ - Industrial 64,973 - 64,973 63,467 - 63,467 Total $ 64,973 $ - $ 64,973 $ 63,467 $ - $ 63,467 Total intangibles: Aerospace $ 358,054 $ ( 246,550 ) $ 111,504 $ 358,054 $ ( 241,908 ) $ 116,146 Industrial 621,379 ( 119,748 ) 501,631 625,212 ( 129,366 ) 495,846 Consolidated Total $ 979,433 $ ( 366,298 ) $ 613,135 $ 983,266 $ ( 371,274 ) $ 611,992 Woodward tests the indefinite lived tradename intangible asset for impairment during the fourth quarter of each fiscal year, or at any time there is an indication the indefinite lived tradename intangible asset is more-likely-than-not impaired, commonly referred to as triggering events. Woodward’s fourth quarter of fiscal year 2019 impairment test resulted in no impairment. In the first quarter of fiscal year 2020, Woodward determined that the approved plan to divest of the renewable power systems portfolio (see Note 10, Impairment of assets held for sale ) represented a triggering event requiring the long-lived assets attributable to the renewable power systems portfolio be assessed for impairment. Given the current facts and circumstances, Woodward determined that the remaining value of the intangible assets of the renewable power systems portfolio was not recoverable and a $ 392 non-cash impairment charge was recorded in the first quarter of fiscal year 2020. For the three-months ended December 31, 2019 and 2018, Woodward recorded amortization expense associated with intangibles of the following: Three-Months Ended December 31, 2019 2018 Amortization expense $ 9,905 $ 17,472 Future amortization expense associated with intangibles is expected to be: Year Ending September 30: 2020 (remaining) $ 29,344 2021 40,390 2022 38,279 2023 37,228 2024 33,451 Thereafter 369,470 $ 548,162 |
Credit Facilities, Short-term B
Credit Facilities, Short-term Borrowings and Long-term Debt | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure | |
Credit Facilities, Short-term Borrowings and Long-term Debt | Note 15. Credit facilities, short-term borrowings and long-term debt Revolving credit facility Woodward maintains a $ 1,000,000 revolving credit facility established under a revolving credit agreement among Woodward, a syndicate of lenders and Wells Fargo Bank, National Association, as administrative agent (the “Revolving Credit Agreement”). The Revolving Credit Agreement provides for the option to increase available borrowings up to $ 1,500,000 , subject to lenders’ participation. Borrowings under the Revolving Credit Agreement can be made by Woodward and certain of its foreign subsidiaries in U.S. dollars or in foreign currencies other than the U.S. dollar and generally bear interest at LIBOR plus 0.875 % to 1.75 %. The Revolving Credit Agreement matures on June 19, 2024 . Under the Revolving Credit Agreement, there were $ 283,168 in principal amount of borrowings outstanding as of December 31, 2019, at an effective interest rate of 2.67 %, and $ 262,297 in principal amount of borrowings outstanding as of September 30, 2019, at an effective interest rate of 3.01 %. As of December 31, 2019, the entire amount of borrowings under the Revolving Credit Agreement were classified as short-term borrowings based on Woodward’s intent and ability to pay this amount in the next twelve months. As of September 30, 2019, $ 220,000 of the borrowings under the Revolving Credit Agreement were classified as short-term borrowings. Short-term borrowings Woodward 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 on Woodward’s foreign lines of credit and foreign overdraft facilities as of both December 31, 2019 and September 30, 2019. Long-term debt December 31, September 30, 2019 2019 Long-term portion of revolving credit facility - Floating rate (LIBOR plus 0.875 % - 1.75 %), due June 19, 2024 ; unsecured $ - $ 42,297 Series G notes – 3.42 %, due November 15, 2020 ; unsecured 50,000 50,000 Series H notes – 4.03 %, due November 15, 2023 ; unsecured 25,000 25,000 Series I notes – 4.18 %, due November 15, 2025 ; unsecured 25,000 25,000 Series J notes – Floating rate (LIBOR plus 1.25 %), due November 15, 2020 ; unsecured 50,000 50,000 Series K notes – 4.03 %, due November 15, 2023 ; unsecured 50,000 50,000 Series L notes – 4.18 %, due November 15, 2025 ; unsecured 50,000 50,000 Series M notes – 1.12 % due September 23, 2026 ; unsecured 44,809 43,770 Series N notes – 1.31 % due September 23, 2028 ; unsecured 86,257 84,257 Series O notes – 1.57 % due September 23, 2031 ; unsecured 48,169 47,053 Series P notes – 4.27 % due May 30, 2025 ; unsecured 85,000 85,000 Series Q notes – 4.35 % due May 30, 2027 ; unsecured 85,000 85,000 Series R notes – 4.41 % due May 30, 2029 ; unsecured 75,000 75,000 Series S notes – 4.46 % due May 30, 2030 ; unsecured 75,000 75,000 Series T notes – 4.61 % due May 30, 2033 ; unsecured 80,000 80,000 Finance leases (Note 5) 3,937 - Unamortized debt issuance costs ( 2,398 ) ( 2,478 ) Total long-term debt 830,774 864,899 Less: Current portion of long-term debt 101,598 - Long-term debt, less current portion $ 729,176 $ 864,899 The Notes On October 1, 2013, Woodward entered into a note purchase agreement 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 First Closing Notes, collectively the “USD Notes”) on November 15, 2013. The current portion of long-term debt as of December 31, 2019 includes the aggregate principal amount of the Series G and Series J notes, both of which mature on November 15, 2020 , and the current portion of finance lease liabilities. On September 23, 2016, Woodward and the BV Subsidiary each entered into note purchase agreements (the “2016 Note Purchase Agreements”) relating to the sale by Woodward and the BV Subsidiary of an aggregate principal amount of € 160,000 of senior unsecured notes in a series of private placement transactions. Woodward issued € 40,000 Series M Notes. The BV Subsidiary issued (a) € 77,000 aggregate principal amount of the BV Subsidiary’s Series N Senior Notes (the “Series N Notes”) and (b) € 43,000 aggregate principal amount of the BV Subsidiary’s Series O Senior Notes (the “Series O Notes” and together with the Series M Notes and the Series N Notes, the “2016 Notes”). On May 31, 2018, Woodward entered into a note purchase agreement (the “2018 Note Purchase Agreement”) relating to the sale by Woodward of an aggregate principal amount of $ 400,000 of senior unsecured notes comprised of (a) $ 85,000 aggregate principal amount of its Series P Senior Notes (the “Series P Notes”), (b) $ 85,000 aggregate principal amount of its Series Q Senior Notes (the “Series Q Notes”), (c) $ 75,000 aggregate principal amount of its Series R Senior Notes (the “Series R Notes”), (d) $ 75,000 aggregate principal amount of its Series S Senior Notes (the “Series S Notes”), and (e) $ 80,000 aggregate principal amount of its Series T Senior Notes (the “Series T Notes”, and together with the Series P Notes, the Series Q Notes, the Series R Notes, and the Series S Notes, the “2018 Notes,” and, together with the USD Notes and 2016 Notes, the “Notes”), in a series of private placement transactions. In connection with the issuance of the 2018 Notes, the Company entered into cross-currency swap transactions in respect of each tranche of the 2018 Notes, which effectively reduced the interest rates on the Series P Notes to 1.82 % per annum, the Series Q Notes to 2.15 % per annum, the Series R Notes to 2.42 % per annum, the Series S Notes to 2.55 % per annum and the Series T Notes to 2.90 % per annum (see Note 8, Derivative instruments and hedging activities ). Interest on 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 Series F Notes is payable semi-annually on April 15 and October 15 of each year until all principal is paid. Interest on the 2016 Notes is payable semi-annually on March 23 and September 23 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 December 31, 2019, the Series J Notes bore interest at an effective rate of 3.15 %. Interest on the 2018 Notes is payable semi-annually on May 30 and November 30 of each year until all principal is paid. Debt Issuance Costs Unamortized debt issuance costs associated with the Notes of $ 2,398 as of December 31, 2019 and $ 2,478 as of September 30, 2019 were recorded as a reduction in “Long-term debt, less current portion” in the Condensed Consolidated Balance Sheets. Unamortized debt issuance costs associated with Woodward’s existing and previous revolving credit agreements of $ 2,791 as of December 31, 2019 and $ 2,840 as of September 30, 2019 were recorded as “Other assets” in the Condensed Consolidated Balance Sheets. Amortization of debt issuance costs is included in operating activities in the Condensed Consolidated Statements of Cash Flows. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | Note 16. Accrued liabilities December 31, September 30, 2019 2019 Salaries and other member benefits $ 62,352 $ 115,649 Warranties 18,927 27,309 Interest payable 5,807 13,808 Accrued retirement benefits 3,608 3,587 Current portion of loss reserve on contractual lease commitments (1) - 1,245 Restructuring charges 255 507 Taxes, other than income 17,763 15,708 Net current contract liabilities (Note 3) 24,961 27,891 Liabilities held for sale (Note 10) 10,186 - Other 24,230 22,423 $ 168,089 $ 228,127 (1) See Note 17, Other liabilities , for more information on loss reserve on contractual lease commitments. 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 as revenue is recognized on a non-specific basis whenever past experience indicates a normal and predictable pattern exists. Changes in accrued product warranties were as follows: Three-Months Ended December 31, 2019 2018 Warranties, beginning of period $ 27,309 $ 20,130 Impact from adoption of ASC 606 - 594 Expense, net of recoveries ( 4,333 ) 2,072 Reductions for settlement of previous warranty liabilities ( 4,277 ) ( 2,537 ) Foreign currency exchange rate changes 228 ( 103 ) Warranties, end of period $ 18,927 $ 20,156 Restructuring charges In the second quarter of fiscal year 2018, the Company recorded restructuring charges totaling $ 17,013 , the majority of which relate to the Company’s decision to relocate its Duarte, California operations to the Company’s newly renovated Drake Campus in Fort Collins, Colorado. The Duarte facility, which manufactures thrust reverser actuation systems, is part of the Company’s Aerospace segment. The remaining restructuring charges recognized during the fiscal year ended September 30, 2018 consist of workforce management costs related to aligning the Company’s industrial turbomachinery business, which is part of the Company’s Industrial segment, with the then current market conditions. All of the restructuring charges recorded during the fiscal year ended September 30, 2018 were recorded as nonsegment expenses. The summary of activity in accrued restructuring charges during the three-months ended December 31, 2019 and December 31, 2018 are as follows: Period Activity Balances as of October 1, 2019 Charges (reductions) Cash receipts (payments) Non-cash activity Balances as of December 31, 2019 Workforce management costs associated with: Duarte plant relocation $ 440 $ - $ ( 228 ) $ - $ 212 Industrial turbomachinery business realignment 67 - - ( 24 ) 43 Total $ 507 $ - $ ( 228 ) $ ( 24 ) $ 255 Period Activity Balances as of October 1, 2018 Charges (reductions) Cash receipts (payments) Non-cash activity Balances as of December 31, 2018 Workforce management costs associated with: Duarte plant relocation $ 12,504 $ - $ - $ - $ 12,504 Industrial turbomachinery business realignment 4,018 - ( 679 ) - 3,339 Total $ 16,522 $ - $ ( 679 ) $ - $ 15,843 |
Other Liabilities
Other Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Other Liabilities [Abstract] | |
Other Liabilities | Note 17. Other liabilities December 31, September 30, 2019 2019 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 114,739 $ 111,257 Total unrecognized tax benefits 11,004 10,644 Noncurrent income taxes payable 20,251 20,251 Deferred economic incentives (1) 9,728 11,535 Loss reserve on contractual lease commitments (3) - 1,754 Net noncurrent contract liabilities (2) 341,008 337,165 Other 36,052 13,482 $ 532,782 $ 506,088 (1) 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 are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects. (2) See Note 3, Revenue , for more information on net noncurrent contract liabilities. (3) In connection with the construction of a new production facility in Niles, Illinois, Woodward vacated a lease facility in Skokie, Illinois, and recorded a loss reserve on the estimated remaining contractual lease commitment, net of anticipated sublease income. As of September 30, 2019, the current portion of the accrued loss reserve on contractual lease commitments was included in “accrued liabilities” (see Note 16, Accrued liabilities ). Woodward adopted ASC 842 on October 1, 2019, which requires that any pre-adoption liabilities related to exit or disposal cost obligations reduce the amount of the ROU asset recognized upon adoption. Accordingly, as of October 1, 2019, Woodward recognized a finance lease liability of $ 2,688 consisting of the future lease component payments, with no corresponding ROU asset recognized, and reduced the current and noncurrent portions of the loss reserve on contractual lease commitments to zero. The amount of the finance lease liability will be reduced in an amount equal to the lease payments made over the remaining term of the lease, which ends in 2022. Future non-lease component payments on the lease and future sublease income received will be recognized in the periods in which they are earned. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 3 Months Ended |
Dec. 31, 2019 | |
Other (Income) Expense, Net [Abstract] | |
Other (Income) Expense, Net | Note 18. Other (income) expense, net Three-Months Ended December 31, 2019 2018 Equity interest in the earnings of the JV (Note 6) $ ( 3,212 ) $ ( 1,465 ) Net (gain) loss on sales of assets (1) ( 13,547 ) 79 Rent income ( 251 ) ( 67 ) Net (gain) loss on investments in deferred compensation program ( 1,244 ) 1,729 Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense ( 3,047 ) ( 3,243 ) Other ( 124 ) ( 212 ) $ ( 21,425 ) $ ( 3,179 ) (1) Included in net (gain) loss on sale of assets for the first quarter of fiscal year 2020 was the pre-tax gain on sale of Duarte real property in the amount of $ 13,522 . |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 19. Income taxes U.S. GAAP requires the interim tax provision be determined as follows: At the end of each quarter, Woodward estimates the tax that will be provided for the current fiscal year stated as a percentage of estimated “ordinary income.” The term ordinary income refers to earnings from continuing operations before income taxes, excluding significant unusual or infrequently occurring items. The estimated annual effective rate is applied to the year-to-date ordinary income at the end of each quarter to compute the estimated year-to-date tax applicable to ordinary income. The tax expense or benefit related to ordinary income in each quarter is equal to the difference between the most recent year-to-date and the prior quarter year-to-date computations. The tax effects of significant unusual or infrequently occurring items are recognized as discrete items in the interim period in which the events occur. The impact of changes in tax laws or rates on deferred tax amounts, the effects of changes in judgment about beginning of the year valuation allowances, and changes in tax reserves resulting from the finalization of tax audits or reviews are examples of significant unusual or infrequently occurring items that are recognized as discrete items in the interim period in which the events occur. The determination of the annual effective tax rate is based upon a number of significant estimates and judgments. In addition, as a global commercial enterprise, Woodward’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, changes in the estimate of the amount of undistributed foreign earnings that Woodward considers indefinitely reinvested, and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. Within the calculation of Woodward’s annual effective tax rate, Woodward has used assumptions and estimates that may change as a result of future guidance, interpretation, and rule-making from the IRS, the SEC, and the FASB and/or various other tax jurisdictions. Changes in corporate tax rates, the net deferred tax assets and/or liabilities relating to Woodward’s U.S. operations, the taxation of foreign earnings, and the deductibility of expenses contained in the Tax Act or other future tax reform legislation could have a material impact on Woodward’s future income tax expense. The following table sets forth the tax expense and the effective tax rate for Woodward’s earnings before income taxes: Three-Months Ended December 31, 2019 2018 Earnings before income taxes $ 61,548 $ 61,515 Income tax expense 8,175 12,395 Effective tax rate 13.3 % 20.1 % The decrease in the effective tax rate for the three-months ended December 31, 2019, compared to the three-months ended December 31, 2018 is primarily attributable to a larger favorable increase in the net excess income tax benefits from stock-based compensation, the tax benefit associated with the impairment of assets held for sale, and smaller unfavorable adjustment to prior period tax items. This decrease is partially offset by increased earnings in higher taxed jurisdictions and the impact of increased pre-tax earnings when compared to tax incentives, such as the research credit. Gross unrecognized tax benefits were $ 10,631 as of December 31, 2019, and $ 10,305 as of September 30, 2019. At December 31, 2019, the amount of the liability for unrecognized tax benefits that, if recognized, would impact Woodward’s effective tax rate was $ 4,582 . At this time, Woodward does not believe it is reasonably possible that the liability for unrecognized tax benefits will decrease in the next twelve months. Woodward accrues for potential interest and penalties related to unrecognized tax benefits and all other interest and penalties related to tax payments in tax expense. Woodward had accrued gross interest and penalties of $ 481 as of December 31, 2019 and $ 437 as of September 30, 2019. 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 limitation may result in changes to tax expense. Woodward’s fiscal years remaining open to examination for U.S. Federal income taxes include fiscal years 2017 and thereafter. Woodward is currently under examination by the Internal Revenue Service for fiscal year 2017 , which included a foreign tax credit carryback to fiscal year 2016. Woodward’s fiscal years remaining open to examination for significant U.S. state income tax jurisdictions include fiscal years 2015 and thereafter. Woodward’s fiscal years remaining open to examination in significant foreign jurisdictions include 2016 and thereafter. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Note 20. Retirement benefits Woodward provides various retirement 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 matching contributions to eligible employee accounts, which are also deferred for employee personal income tax purposes. Certain non-U.S. employees are also eligible to participate in similar non-U.S. plans. The amount of expense associated with defined contribution plans was as follows: Three-Months Ended December 31, 2019 2018 Company costs $ 8,704 $ 8,371 Defined benefit plans Woodward has defined benefit plans that provide pension benefits for certain retired employees in the United States, the United Kingdom, Japan, and Germany. 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 dependents 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. On October 26, 2018, the High Court of Justice in the United Kingdom (the “High Court”) issued a ruling (the “Court Ruling”) requiring defined benefit plan sponsors in the United Kingdom to equalize benefits payable to men and women under its United Kingdom defined benefit pension plans by amending those plans to increase the pension benefits payable to participants that accrued such benefits during the period from 1990 to 1997. In the Court Ruling, the High Court also provided details on acceptable alternative methods of amending plans to equalize the pension benefits. Although final guidance around the appropriate equalization methodology to be used has not yet been issued, Woodward has concluded that Court Ruling is applicable to its defined benefit pension plan in the United Kingdom and has made the necessary plan amendments. Woodward’s current estimate of the impact of the Court Ruling in the amount of $ 601 has been reflected in the United Kingdom defined benefit pension plan’s obligation and assets as of September 30, 2019 and will be amortized as a net prior service cost beginning in fiscal year 2020. Woodward does not expect that any changes to the estimate resulting from final guidance around the appropriate equalization methodology to be used will be material to the United Kingdom defined benefit pension plan’s obligation. U.S. GAAP requires that, for obligations outstanding as of September 30, 2019, the funded status reported in interim periods shall be the same asset or liability recognized in the previous year end statement of financial position adjusted for (a) subsequent accruals of net periodic benefit cost that exclude the amortization of amounts previously recognized in other comprehensive income (for example, subsequent accruals of service cost, interest cost, and return on plan assets) and (b) contributions to a funded plan or benefit payments. The components of the net periodic retirement pension costs recognized are as follows: Three-Months Ended December 31, United States Other Countries Total 2019 2018 2019 2018 2019 2018 Service cost $ 415 $ 363 $ 710 $ 512 $ 1,125 $ 875 Interest cost 1,398 1,596 321 480 1,719 2,076 Expected return on plan assets ( 3,087 ) ( 2,996 ) ( 832 ) ( 662 ) ( 3,919 ) ( 3,658 ) Amortization of: Net actuarial loss 358 154 261 71 619 225 Prior service cost 234 177 6 - 240 177 Net periodic retirement pension (benefit) cost $ ( 682 ) $ ( 706 ) $ 466 $ 401 $ ( 216 ) $ ( 305 ) Contributions paid $ - $ - $ 1,131 $ 554 $ 1,131 $ 554 The components of net periodic retirement pension costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net” in the Condensed Consolidated Statements of Earnings. The interest cost component is include in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings. The components of the net periodic other postretirement benefit costs recognized are as follows: Three-Months Ended December 31, 2019 2018 Service cost $ 1 $ 1 Interest cost 195 288 Amortization of: Net actuarial loss 12 14 Prior service cost (benefit) 1 ( 1 ) Net periodic other postretirement cost $ 209 $ 302 Contributions paid $ 345 $ 373 The components of net periodic other postretirement benefit costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net” in the Condensed Consolidated Statements of Earnings. The interest cost component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings. The amount of cash contributions made to these plans in any year is dependent upon a number of factors, including minimum funding requirements in the jurisdictions in which Woodward operates and arrangements made with trustees of certain foreign plans. As a result, the actual funding in fiscal year 2020 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2020 will be as follows: Retirement pension benefits: United States $ - United Kingdom 370 Japan - Germany 911 Other postretirement benefits 2,892 Multiemployer defined benefit plans Woodward operates multiemployer defined benefit plans for certain employees in both the Netherlands and Japan. The amounts of contributions associated with the multiemployer defined benefit plans were as follows: Three-Months Ended December 31, 2019 2018 Company contributions $ 70 $ 77 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity and Stock-Based Compensation [Abstract] | |
Stockholders' Equity | Note 21. Stockholders’ equity Stock repurchase program In the first quarter of fiscal year 2017, Woodward’s board of directors terminated the Company’s prior stock repurchase program and replaced it with a new program for the repurchase of up to $ 500,000 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 November 2019 (the “2017 Authorization”). Effective upon the expiration of the 2017 Authorization in November 2019, Woodward’s board of directors approved a new program for the repurchase of up to $ 500,000 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 2022 (the “2019 Authorization”). In the first three-months of fiscal year 2020, Woodward purchased no shares of its common stock under the 2019 Authorization. Woodward repurchased no common stock under the 2017 Authorization in the first three-months of fiscal years 2019. Pursuant to the terms of the Merger Agreement with Hexcel Corporation (see Note 24 – Subsequent events ), Woodward is prohibited from making any further common share repurchases prior to the close of the Merger, except as to a prior specific determination to repurchase approximately $ 17,000 of shares. Stock-based compensation Provisions governing outstanding stock option awards are included in the 2017 Omnibus Incentive Plan, as amended from time to time (the “2017 Plan”) and the 2006 Omnibus Incentive Plan (the “2006 Plan”), as applicable. The 2017 Plan was approved by Woodward’s stockholders in January 2017 and is a successor plan to the 2006 Plan. As of September 14, 2016, the effective date of the 2017 Plan, Woodward’s board of directors delegated authority to administer the 2017 Plan to the compensation committee of the board of directors (the “Committee”), including, but not limited to, the power to determine the recipients of awards and the terms of those awards. On January 30, 2019, Woodward’s stockholders approved an additional 1,400 shares of Woodward’s common stock to be made available for future grants. Under the 2017 Plan, there were approximately 1,178 shares of Woodward’s common stock available for future grants as of December 31, 2019 and 1,783 shares as of September 30, 2019. Stock options Woodward believes that stock options align the interests of its employees and directors with the interests of its stockholders. Stock option awards are granted with an exercise price equal to the market price of Woodward’s stock at the date the grants are awarded, a ten year term, and generally have a four year vesting schedule at a rate of 25 % per year. The fair value of options granted is estimated as of the grant date using the Black-Scholes-Merton option-valuation model using the assumptions in the following table. Woodward calculates the expected term, which represents the average period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant. Three-Months Ended December 31, 2019 2018 Weighted-average exercise price per share $ 104.82 $ 79.79 Weighted-average grant date market value of Woodward stock $ 104.82 $ 79.79 Expected term (years) 6.4 - 8.7 6.5 - 8.7 Estimated volatility 25.7 % - 30.1 % 25.7 % - 31.0 % Estimated dividend yield 0.6 % 0.7 % - 0.8 % Risk-free interest rate 1.6 % - 1.7 % 2.7 % - 3.1 % The following is a summary of the activity for stock option awards during the three-months ended December 31, 2019: Three-Months Ended December 31, 2019 Number of options Weighted-Average Exercise Price per Share Options, beginning balance 5,387 $ 53.73 Options granted 626 104.82 Options exercised ( 226 ) 33.42 Options forfeited ( 21 ) 81.53 Options, ending balance 5,766 59.97 Changes in non-vested stock options during the three-months ended December 31, 2019 were as follows: Three-Months Ended December 31, 2019 Number of options Weighted-Average Grant Date Fair Value per Share Non-vested options outstanding, beginning balance 2,068 $ 23.43 Options granted 626 28.55 Options vested ( 768 ) 21.43 Options forfeited ( 21 ) 25.19 Non-vested options outstanding, ending balance 1,905 25.90 Information about stock options that have vested, or are expected to vest, and are exercisable at December 31, 2019 was as follows: Number Weighted- Average Exercise Price Weighted- Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 5,766 $ 59.97 6.2 $ 337,161 Options vested and exercisable 3,862 47.06 4.9 275,645 Options vested and expected to vest 5,640 59.30 6.1 333,494 Restricted stock units Restricted stock units have been granted to certain employees of L’Orange (at acquisition) and other current Woodward members in key management positions. Each restricted stock unit entitles the holder to one share of the Company’s common stock upon vesting. The restricted stock units were granted with a two year vesting schedule and vest on the one and two year anniversaries of the grant date at a rate of 50 % per year. The restricted stock units do not participate in dividends during the vesting period. The fair value of restricted stock units granted were estimated using the closing price of Woodward common stock on the grant date. A summary of the activity for restricted stock units for the three-months ended December 31, 2019: Three-Months Ended December 31, 2019 Number Weighted-Average Grant Date Fair Value per Unit Beginning balance 9 $ 91.55 Units granted - - Units vested - - Units forfeited - - Ending balance 9 91.55 Stock-based compensation expense Woodward recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Pursuant to form stock option agreements used by the Company, with terms approved by the administrator of the applicable plan, the requisite service period can be less than the four year vesting period based on grantee’s retirement eligibility. As such, the recognition of stock-based compensation expense associated with some stock option grants can be accelerated to a period of less than four years, including immediate recognition of stock-based compensation expense on the date of grant. At December 31, 2019, there was approximately $ 10,982 of total unrecognized compensation expense related to non-vested stock-based compensation arrangements, including both stock options and restricted stock awards. The pre-vesting forfeiture rates for purposes of determining stock-based compensation expense recognized were estimated to be 0 % for members of Woodward’s board of directors and 9 % for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 2.4 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 22. Commitments and contingencies 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 using estimates of the most likely amount of loss where it believes that it is probable the matter will result in a loss when ultimately resolved and such loss is reasonably estimable. 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 related claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities. While the outcome of pending claims, legal and regulatory proceedings, and investigations cannot be predicted with certainty, management believes that any liabilities that may result from these claims, proceedings and investigations will not have a material effect on Woodward’s liquidity, financial condition, or results of operations. In the event of a change in control of Woodward, as defined in change-in-control agreements with its current corporate officers, Woodward may be required to pay termination benefits to any such officer if such officer’s employment is terminated within two year s following the change of control. The consummation of the anticipated merger with Hexcel Corporation would constitute a change in control as defined in such agreements (see Note 24 – Subsequent events ). |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information | Note 23. Segment information Woodward serves the aerospace and industrial markets through its two reportable segments – Aerospace and Industrial. When appropriate, Woodward’s reportable segments are aggregations of Woodward’s operating segments. Woodward uses operating segment information internally to manage its business, including the assessment of operating segment performance and decisions for the allocation of resources between operating segments. The accounting policies of the reportable segments are the same as those of the Company. Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period. In connection with that assessment, Woodward generally excludes matters such as certain charges for restructuring, interest income and expense, certain gains and losses from asset dispositions, or other non-recurring and/or non-operationally related expenses. A summary of consolidated net sales and earnings by segment follows: Three-Months Ended December 31, 2019 2018 Segment external net sales: Aerospace $ 473,925 $ 392,887 Industrial 246,430 259,924 Total consolidated net sales $ 720,355 $ 652,811 Segment earnings: Aerospace $ 92,911 $ 72,854 Industrial 28,230 29,169 Nonsegment expenses ( 51,071 ) ( 29,001 ) Interest expense, net ( 8,522 ) ( 11,507 ) Consolidated earnings before income taxes $ 61,548 $ 61,515 Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets follows: December 31, 2019 September 30, 2019 Segment assets: Aerospace $ 1,905,846 $ 1,900,657 Industrial 1,520,687 1,561,441 Unallocated corporate property, plant and equipment, net 108,669 114,887 Other unallocated assets 471,967 379,541 Consolidated total assets $ 4,007,169 $ 3,956,526 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 24. Subsequent events Proposed Merger with Hexcel On January 12, 2020, Woodward entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Hexcel Corporation (“Hexcel”) and Genesis Merger Sub, Inc., a wholly owned subsidiary of Woodward (“Merger Sub”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into Hexcel (the “Merger”), with Hexcel surviving the Merger as a wholly owned subsidiary of Woodward. Upon the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of common stock, par value $ 0.01 per share, of Hexcel (the “Hexcel Common Stock”) issued and outstanding immediately prior to the Effective Time, other than certain shares that may be owned by Hexcel, Woodward or Merger Sub, will be converted into the right to receive 0.6250 shares of common stock of Woodward. Holders of Hexcel Common Stock will receive cash in lieu of fractional shares. In anticipation of entering into the Merger Agreement, on January 11, 2020, the Woodward board of directors approved an amendment to certain Woodward options and Woodward restricted stock units that would be outstanding on January 12, 2020, and through the time as of immediately before the Effective Time to provide that if on or within 24 months following the Effective Time, the award holder’s employment is terminated without “cause” or the award holder terminates employment for “good reason,” such equity awards will become fully vested (the “Double-Trigger Vesting”). The Double-Trigger Vesting applies to such awards held by Woodward employees, but excludes any such award that as of immediately before the Effective Time, is held by the Chief Executive Officer of Woodward or any other employee who qualifies for post-termination continued vesting pursuant to its terms. As of January 12, 2020, awards held by certain named executive officers, Jonathan W. Thayer, Thomas G. Cromwell and Sagar A. Patel, would be eligible to receive the Double-Trigger Vesting. On January 11, 2020, the Woodward board of directors also approved that at the Effective Time, each award granted under the cash component of Woodward’s long-term incentive program, including such awards held by each of the named executive officers of Woodward, Thomas A. Gendron, Robert F. Weber, Jr., and Messrs. Thayer, Cromwell and Patel, that is outstanding as of immediately prior to the Effective Time, will be converted into the right to receive a cash amount, based on the greater of target or actual performance and prorated based on the portion of the applicable performance period that is completed through the Effective Time. The consummation of the Merger is subject to the approval of the shareholders of both Woodward and Hexcel and the issuance of shares of Woodward common stock in the Merger is subject to the approval of Woodward shareholders, as well as other customary closing conditions, including required regulatory approvals. The parties expect the Merger to close in the third calendar quarter of 2020, subject to satisfaction of these conditions. Transaction-related costs associated with the Merger will be expensed as incurred. For further information on the Merger, refer to the Form 8-K filed by Woodward with the SEC on January 13, 2020. Dividend Declared On January 29, 2020 , Woodward’s board of directors declared a quarterly cash dividend of $ 0.28 per share, payable on March 3, 2020 , to stockholders of record as of February 18, 2020 . Sale of renewable power systems portfolio On January 31, 2020, Woodward entered into definitive agreements to sell certain assets related to Woodward’s renewable power systems and protective relays businesses to affiliates of AURELIUS Group for $ 23,400 , subject to customary purchase price adjustments, consisting of cash and a $ 6,000 promissory note. The assets are primarily located in Germany, Poland and Bulgaria and accounted for approximately $ 80,000 of sales in fiscal 2019. The transaction is subject to customary closing conditions and is expected to close early in the third quarter of fiscal year 2020. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue | |
Schedule of Revenue Recognition Time | Three-Months Ended December 31, 2019 Three-Months Ended December 31, 2018 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Point in time $ 187,515 $ 167,942 $ 355,457 $ 164,014 $ 172,162 $ 336,176 Over time 286,410 78,488 364,898 228,873 87,762 316,635 Total net sales $ 473,925 $ 246,430 $ 720,355 $ 392,887 $ 259,924 $ 652,811 |
Schedule of Accounts Receivable | December 31, 2019 September 30, 2019 Billed receivables Trade accounts receivable $ 354,152 $ 381,942 Other (Chinese financial institutions) 16,635 42,171 Less: Allowance for uncollectible amounts ( 3,813 ) ( 7,908 ) Net billed receivables 366,974 416,205 Current unbilled receivables (contract assets), net 205,469 175,324 Total accounts receivable, net $ 572,443 $ 591,529 |
Schedule of Contract Liability | December 31, 2019 September 30, 2019 Current Noncurrent Current Noncurrent Deferred revenue from material rights from GE joint venture formation $ 8,186 $ 229,011 $ 8,317 $ 230,588 Deferred revenue from advance invoicing and/or prepayments from customers 4,200 139 4,554 141 Liability related to customer supplied inventory 10,298 - 13,396 - Deferred revenue from material rights related to engineering and development funding 2,277 111,858 1,624 106,436 Net contract liabilities $ 24,961 $ 341,008 $ 27,891 $ 337,165 |
Schedule of Disaggregation of Revenue | Three-Months Ended December 31, 2019 2018 Commercial OEM $ 158,666 $ 140,508 Commercial aftermarket 125,928 111,348 Defense OEM 140,926 101,836 Defense aftermarket 48,405 39,195 Total Aerospace segment net sales $ 473,925 $ 392,887 Revenue by primary market for the Industrial reportable segment was as follows: Three-Months Ended December 31, 2019 2018 Reciprocating engines $ 174,653 $ 196,130 Industrial turbines 51,500 49,512 Renewables 20,277 14,282 Total Industrial segment net sales $ 246,430 $ 259,924 The customers who account for approximately 10% or more of net sales to each of Woodward’s reportable segments for the three-months ended December 31, 2019 are as follows: Customer Aerospace The Boeing Company, General Electric Company, United Technologies Corporation Industrial Rolls-Royce PLC, Weichai Westport Net sales by geographic area, as determined based on the location of the customer, were as follows: Three-Months Ended December 31, 2019 Three-Months Ended December 31, 2018 Aerospace Industrial Consolidated Aerospace Industrial Consolidated United States $ 363,912 $ 51,092 $ 415,004 $ 286,745 $ 49,892 $ 336,637 Germany 17,278 51,438 68,716 12,749 63,364 76,113 Europe, excluding Germany 38,987 50,501 89,488 39,612 59,348 98,960 China 10,212 53,876 64,088 15,638 50,251 65,889 Asia, excluding China 6,981 31,912 38,893 8,368 29,167 37,535 Other countries 36,555 7,611 44,166 29,775 7,902 37,677 Total net sales $ 473,925 $ 246,430 $ 720,355 $ 392,887 $ 259,924 $ 652,811 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share | |
Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted | Three-Months Ended December 31, 2019 2018 Numerator: Net earnings $ 53,373 $ 49,120 Denominator: Basic shares outstanding 61,991 61,818 Dilutive effect of stock options and restricted stock 2,682 2,241 Diluted shares outstanding 64,673 64,059 Income per common share: Basic earnings per share $ 0.86 $ 0.79 Diluted earnings per share $ 0.83 $ 0.77 |
Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share | Three-Months Ended December 31, 2019 2018 Options 653 1,426 Weighted-average option price $ 104.40 $ 79.22 |
Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding | Three-Months Ended December 31, 2019 2018 Weighted-average treasury stock shares held for deferred compensation obligations 213 206 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease-Related Assets and Liabilities | Classification on the Condensed Consolidated Balance Sheets December 31, 2019 Assets: Operating lease assets Other assets $ 20,293 Finance lease assets Property, plant and equipment, net 1,519 Total lease assets 21,812 Current liabilities: Operating lease liabilities Accrued liabilities 4,804 Finance lease liabilities Current portion of long-term debt 1,598 Noncurrent liabilities: Operating lease liabilities Other liabilities 16,305 Finance lease liabilities Long-term debt, less current portion 2,339 Total lease liabilities $ 25,046 |
Supplemental Lease-Related Information | December 31, 2019 Weighted average remaining lease term Operating leases 6.1 years Finance leases 2.6 years Weighted average discount rate Operating leases 3.3 % Finance leases 3.0 % |
Lease-Related Expenses | Three-Months Ended December 31, 2019 Operating lease expense $ 1,519 Amortization of finance lease assets 147 Interest on finance lease liabilities 20 Variable lease expense 307 Short-term lease expense 175 Sublease income (1) ( 125 ) Total lease expense $ 2,043 (1) Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois. |
Lease-Related Supplemental Cash Flow Information | Three-Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1,254 Operating cash flows for finance leases 20 Financing cash flows for finance leases 439 Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases 3,540 Finance leases 1,211 |
Maturities of Lease Liabilities | Year Ending September 30: Operating Leases Finance Leases 2020 (remaining) 4,159 1,264 2021 4,531 1,678 2022 3,552 734 2023 2,840 321 2024 2,171 81 Thereafter 6,127 - Total lease payments 23,380 4,078 Less: imputed interest ( 2,271 ) ( 141 ) Total lease obligations $ 21,109 $ 3,937 |
Future Minimum Lease Payments | Year Ending September 30: Operating Leases Finance Leases 2020 (full twelve months) $ 6,667 $ 213 2021 5,119 98 2022 3,823 33 2023 2,899 3 2024 2,378 - Thereafter 6,033 - Total minimum lease payments under ASC 840 $ 26,919 $ 347 |
Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements | December 31, 2019 Property, plant and equipment leased to others through embedded leasing arrangements $ 38,612 Less accumulated depreciation ( 21,618 ) Property, plant and equipment leased to others through embedded leasing arrangements, net $ 16,994 |
Joint Venture (Tables)
Joint Venture (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Joint Venture | |
Unamortized Deferred Revenue from JV | December 31, 2019 September 30, 2019 Accrued liabilities $ 8,186 $ 8,317 Other liabilities 229,011 230,588 |
Other Income Related JV | Three-Months Ended December 31, 2019 2018 Other income $ 3,212 $ 1,465 |
Cash Distribution from JV | Three-Months Ended December 31, 2019 2018 Cash distributions $ 3,000 $ 4,500 |
Net Sales to the JV | Three-Months Ended December 31, 2019 2018 Net sales (1) $ 14,878 $ 12,833 (1) Woodward recorded a reduction to sales of $ 7,234 for the three-months ended December 31, 2019 related to royalties paid to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $ 9,182 for the three-months ended December 31, 2018. |
Accounts Receivable, Accounts Payable, and Other Assets Related to JV | December 31, 2019 September 30, 2019 Accounts receivable $ 5,442 $ 5,906 Accounts payable 2,504 4,270 Other assets 7,755 7,543 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Financial Instruments and Fair Value Measurments | |
Financial Assets that are Measured at Fair Value on a Recurring Basis | At December 31, 2019 At September 30, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Cash $ 85,366 $ - $ - $ 85,366 $ 52,971 $ - $ - $ 52,971 Investments in reverse repurchase agreements 271 - - 271 886 - - 886 Investments in term deposits with foreign banks 62,371 - - 62,371 45,216 - - 45,216 Equity securities 23,636 - - 23,636 20,504 - - 20,504 Net assets held for sale (Note 10) - - 11,950 11,950 - - - - Cross currency interest rate swaps - 13,474 - 13,474 - 24,758 - 24,758 Total financial assets $ 171,644 $ 13,474 $ 11,950 $ 197,068 $ 119,577 $ 24,758 $ - $ 144,335 |
Estimated Fair Values of Financial Instruments | At December 31, 2019 At September 30, 2019 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 $ 12,868 $ 12,020 $ 13,100 $ 12,346 Investments in short-term time deposits 2 13,371 13,386 13,468 13,509 Liabilities: Long-term debt 2 $ ( 887,834 ) $ ( 833,172 ) $ ( 928,618 ) $ ( 867,377 ) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities | |
Impact of Derivative Instruments on Earnings | Three-Months Ended December 31, 2019 Derivatives in: Location 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 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ 2,276 $ 3,598 $ 2,683 Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses 8,991 7,696 8,991 Treasury lock agreement designated as cash flow hedge Interest expense ( 18 ) - ( 18 ) $ 11,249 $ 11,294 $ 11,656 Three-Months Ended December 31, 2018 Derivatives in: Location 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 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ ( 2,389 ) $ ( 2,505 ) $ ( 2,252 ) Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses ( 5,556 ) ( 16,058 ) ( 5,556 ) Treasury lock agreement designated as cash flow hedge Interest expense ( 18 ) - ( 18 ) $ ( 7,963 ) $ ( 18,563 ) $ ( 7,826 ) |
Supplemental Statement of Cas_2
Supplemental Statement of Cash Flows Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Supplemental Statement of Cash Flows Information | |
Schedule of Supplemental Statement of Cash Flows Information | Three-Months Ended December 31, 2019 2018 Interest paid, net of amounts capitalized $ 10,749 $ 16,754 Income taxes paid 7,086 15,858 Income tax refunds received 12 444 Non-cash activities: Purchases of property, plant and equipment on account 2,551 4,580 Impact of the adoption of ASC 606 - 38,700 Impact of the adoption of ASC 842 (Note 5) 255 - Impact of the adoption of ASU 2016-16 - 1,005 |
Impairment of Assets Held for_2
Impairment of Assets Held for Sale (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Impairment Of Assets Held For Sale [Abstract] | |
Valuation Allowance against Assets and Liabilities Held for Sale | December 31, 2019 Assets: Accounts receivable $ 18,140 Inventories 17,929 Other current assets 363 Other assets 142 Total assets 36,574 Valuation, allowance ( 14,438 ) Total assets, net 22,136 Liabilities: Accounts payable 1,962 Accrued liabilities 7,733 Other liabilities 491 Total liabilities $ 10,186 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Schedule of Inventories | December 31, September 30, 2019 2019 Raw materials $ 142,911 $ 134,878 Work in progress 136,873 133,885 Component parts (1) 285,792 287,128 Finished goods 72,483 59,051 Customer supplied inventory 10,298 13,396 On-hand inventory for which control has transferred to the customer ( 128,091 ) ( 111,502 ) $ 520,266 $ 516,836 (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 (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Property, Plant, and Equipment | |
Schedule of Property Plant and Equipment, Net | December 31, September 30, 2019 2019 Land and land improvements $ 89,483 $ 94,976 Buildings and building improvements 575,988 587,541 Leasehold improvements 17,810 17,446 Machinery and production equipment 733,995 731,159 Computer equipment and software 123,187 124,201 Office furniture and equipment 40,002 39,934 Other 19,162 19,346 Construction in progress 49,228 57,624 1,648,855 1,672,227 Less accumulated depreciation ( 615,277 ) ( 613,452 ) Property, plant, and equipment, net $ 1,033,578 $ 1,058,775 |
Schedule of Depreciation Expense | Three-Months Ended December 31, 2019 2018 Depreciation expense $ 22,546 $ 21,169 |
Schedule of Capitalized Interest | Three-Months Ended December 31, 2019 2018 Capitalized interest $ 34 $ 227 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill [Abstract] | |
Schedule of Goodwill | September 30, 2019 Impairment Charges Effects of Foreign Currency Translation December 31, 2019 Aerospace $ 455,423 $ - $ - $ 455,423 Industrial 342,430 ( 8,777 ) 6,705 340,358 Consolidated $ 797,853 $ ( 8,777 ) $ 6,705 $ 795,781 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net [Abstract] | |
Schedule of Finite-lived and Indefinite-lived Intangible Assets by Major Class | December 31, 2019 September 30, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Intangible assets with finite lives: Customer relationships and contracts: Aerospace $ 281,683 $ ( 185,626 ) $ 96,057 $ 281,683 $ ( 181,995 ) $ 99,688 Industrial 411,436 ( 43,619 ) 367,817 407,683 ( 43,986 ) 363,697 Total $ 693,119 $ ( 229,245 ) $ 463,874 $ 689,366 $ ( 225,981 ) $ 463,385 Intellectual property: Aerospace $ - $ - $ - $ - $ - $ - Industrial 15,790 ( 15,513 ) 277 19,201 ( 18,705 ) 496 Total $ 15,790 $ ( 15,513 ) $ 277 $ 19,201 $ ( 18,705 ) $ 496 Process technology: Aerospace $ 76,371 $ ( 60,924 ) $ 15,447 $ 76,371 $ ( 59,913 ) $ 16,458 Industrial 87,500 ( 19,042 ) 68,458 92,820 ( 24,926 ) 67,894 Total $ 163,871 $ ( 79,966 ) $ 83,905 $ 169,191 $ ( 84,839 ) $ 84,352 Backlog: Aerospace $ - $ - $ - $ - $ - $ - Industrial 41,456 ( 41,456 ) - 40,500 ( 40,500 ) - Total $ 41,456 $ ( 41,456 ) $ - $ 40,500 $ ( 40,500 ) $ - Other intangibles: Aerospace $ - $ - $ - $ - $ - $ - Industrial 224 ( 118 ) 106 1,541 ( 1,249 ) 292 Total $ 224 $ ( 118 ) $ 106 $ 1,541 $ ( 1,249 ) $ 292 Intangible asset with indefinite life: Tradename: Aerospace $ - $ - $ - $ - $ - $ - Industrial 64,973 - 64,973 63,467 - 63,467 Total $ 64,973 $ - $ 64,973 $ 63,467 $ - $ 63,467 Total intangibles: Aerospace $ 358,054 $ ( 246,550 ) $ 111,504 $ 358,054 $ ( 241,908 ) $ 116,146 Industrial 621,379 ( 119,748 ) 501,631 625,212 ( 129,366 ) 495,846 Consolidated Total $ 979,433 $ ( 366,298 ) $ 613,135 $ 983,266 $ ( 371,274 ) $ 611,992 |
Schedule of Finite-Lived Intangible Assets Amortization Expense | Three-Months Ended December 31, 2019 2018 Amortization expense $ 9,905 $ 17,472 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Year Ending September 30: 2020 (remaining) $ 29,344 2021 40,390 2022 38,279 2023 37,228 2024 33,451 Thereafter 369,470 $ 548,162 |
Credit Facilities, Short-term_2
Credit Facilities, Short-term Borrowings and Long-term Debt (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure | |
Schedule of Long-term Debt | December 31, September 30, 2019 2019 Long-term portion of revolving credit facility - Floating rate (LIBOR plus 0.875 % - 1.75 %), due June 19, 2024 ; unsecured $ - $ 42,297 Series G notes – 3.42 %, due November 15, 2020 ; unsecured 50,000 50,000 Series H notes – 4.03 %, due November 15, 2023 ; unsecured 25,000 25,000 Series I notes – 4.18 %, due November 15, 2025 ; unsecured 25,000 25,000 Series J notes – Floating rate (LIBOR plus 1.25 %), due November 15, 2020 ; unsecured 50,000 50,000 Series K notes – 4.03 %, due November 15, 2023 ; unsecured 50,000 50,000 Series L notes – 4.18 %, due November 15, 2025 ; unsecured 50,000 50,000 Series M notes – 1.12 % due September 23, 2026 ; unsecured 44,809 43,770 Series N notes – 1.31 % due September 23, 2028 ; unsecured 86,257 84,257 Series O notes – 1.57 % due September 23, 2031 ; unsecured 48,169 47,053 Series P notes – 4.27 % due May 30, 2025 ; unsecured 85,000 85,000 Series Q notes – 4.35 % due May 30, 2027 ; unsecured 85,000 85,000 Series R notes – 4.41 % due May 30, 2029 ; unsecured 75,000 75,000 Series S notes – 4.46 % due May 30, 2030 ; unsecured 75,000 75,000 Series T notes – 4.61 % due May 30, 2033 ; unsecured 80,000 80,000 Finance leases (Note 5) 3,937 - Unamortized debt issuance costs ( 2,398 ) ( 2,478 ) Total long-term debt 830,774 864,899 Less: Current portion of long-term debt 101,598 - Long-term debt, less current portion $ 729,176 $ 864,899 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities [Line Items] | |
Accrued Liabilities | December 31, September 30, 2019 2019 Salaries and other member benefits $ 62,352 $ 115,649 Warranties 18,927 27,309 Interest payable 5,807 13,808 Accrued retirement benefits 3,608 3,587 Current portion of loss reserve on contractual lease commitments (1) - 1,245 Restructuring charges 255 507 Taxes, other than income 17,763 15,708 Net current contract liabilities (Note 3) 24,961 27,891 Liabilities held for sale (Note 10) 10,186 - Other 24,230 22,423 $ 168,089 $ 228,127 (1) See Note 17, Other liabilities , for more information on loss reserve on contractual lease commitments. |
Changes in Accrued Product Warranties | Three-Months Ended December 31, 2019 2018 Warranties, beginning of period $ 27,309 $ 20,130 Impact from adoption of ASC 606 - 594 Expense, net of recoveries ( 4,333 ) 2,072 Reductions for settlement of previous warranty liabilities ( 4,277 ) ( 2,537 ) Foreign currency exchange rate changes 228 ( 103 ) Warranties, end of period $ 18,927 $ 20,156 |
Employee Severance [Member] | |
Accrued Liabilities [Line Items] | |
Loss Reserve & Restructuring Reserve Activity | Period Activity Balances as of October 1, 2019 Charges (reductions) Cash receipts (payments) Non-cash activity Balances as of December 31, 2019 Workforce management costs associated with: Duarte plant relocation $ 440 $ - $ ( 228 ) $ - $ 212 Industrial turbomachinery business realignment 67 - - ( 24 ) 43 Total $ 507 $ - $ ( 228 ) $ ( 24 ) $ 255 Period Activity Balances as of October 1, 2018 Charges (reductions) Cash receipts (payments) Non-cash activity Balances as of December 31, 2018 Workforce management costs associated with: Duarte plant relocation $ 12,504 $ - $ - $ - $ 12,504 Industrial turbomachinery business realignment 4,018 - ( 679 ) - 3,339 Total $ 16,522 $ - $ ( 679 ) $ - $ 15,843 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | December 31, September 30, 2019 2019 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 114,739 $ 111,257 Total unrecognized tax benefits 11,004 10,644 Noncurrent income taxes payable 20,251 20,251 Deferred economic incentives (1) 9,728 11,535 Loss reserve on contractual lease commitments (3) - 1,754 Net noncurrent contract liabilities (2) 341,008 337,165 Other 36,052 13,482 $ 532,782 $ 506,088 (1) 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 are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects. (2) See Note 3, Revenue , for more information on net noncurrent contract liabilities. (3) In connection with the construction of a new production facility in Niles, Illinois, Woodward vacated a lease facility in Skokie, Illinois, and recorded a loss reserve on the estimated remaining contractual lease commitment, net of anticipated sublease income. As of September 30, 2019, the current portion of the accrued loss reserve on contractual lease commitments was included in “accrued liabilities” (see Note 16, Accrued liabilities ). Woodward adopted ASC 842 on October 1, 2019, which requires that any pre-adoption liabilities related to exit or disposal cost obligations reduce the amount of the ROU asset recognized upon adoption. Accordingly, as of October 1, 2019, Woodward recognized a finance lease liability of $ 2,688 consisting of the future lease component payments, with no corresponding ROU asset recognized, and reduced the current and noncurrent portions of the loss reserve on contractual lease commitments to zero. The amount of the finance lease liability will be reduced in an amount equal to the lease payments made over the remaining term of the lease, which ends in 2022. Future non-lease component payments on the lease and future sublease income received will be recognized in the periods in which they are earned. |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Other (Income) Expense, Net [Abstract] | |
Schedule of Other (Income) Expense, Net | Three-Months Ended December 31, 2019 2018 Equity interest in the earnings of the JV (Note 6) $ ( 3,212 ) $ ( 1,465 ) Net (gain) loss on sales of assets (1) ( 13,547 ) 79 Rent income ( 251 ) ( 67 ) Net (gain) loss on investments in deferred compensation program ( 1,244 ) 1,729 Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense ( 3,047 ) ( 3,243 ) Other ( 124 ) ( 212 ) $ ( 21,425 ) $ ( 3,179 ) (1) Included in net (gain) loss on sale of assets for the first quarter of fiscal year 2020 was the pre-tax gain on sale of Duarte real property in the amount of $ 13,522 . |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Tax Expense and Effective Tax Rate | Three-Months Ended December 31, 2019 2018 Earnings before income taxes $ 61,548 $ 61,515 Income tax expense 8,175 12,395 Effective tax rate 13.3 % 20.1 % |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Line Items] | |
Schedule of Amount of Expense Associated with Defined Contribution Plans | Three-Months Ended December 31, 2019 2018 Company costs $ 8,704 $ 8,371 |
Schedule of Estimated Remaining Cash Contributions | Retirement pension benefits: United States $ - United Kingdom 370 Japan - Germany 911 Other postretirement benefits 2,892 |
Schedule of Amounts of Contributions Associated with Multiemployer Defined Benefit Plans | Three-Months Ended December 31, 2019 2018 Company contributions $ 70 $ 77 |
Defined Benefit Pension Plan [Member] | |
Retirement Benefits [Line Items] | |
Schedule of Net Periodic Benefit Costs | Three-Months Ended December 31, United States Other Countries Total 2019 2018 2019 2018 2019 2018 Service cost $ 415 $ 363 $ 710 $ 512 $ 1,125 $ 875 Interest cost 1,398 1,596 321 480 1,719 2,076 Expected return on plan assets ( 3,087 ) ( 2,996 ) ( 832 ) ( 662 ) ( 3,919 ) ( 3,658 ) Amortization of: Net actuarial loss 358 154 261 71 619 225 Prior service cost 234 177 6 - 240 177 Net periodic retirement pension (benefit) cost $ ( 682 ) $ ( 706 ) $ 466 $ 401 $ ( 216 ) $ ( 305 ) Contributions paid $ - $ - $ 1,131 $ 554 $ 1,131 $ 554 |
Other Postretirement Benefit Plans [Member] | |
Retirement Benefits [Line Items] | |
Schedule of Net Periodic Benefit Costs | Three-Months Ended December 31, 2019 2018 Service cost $ 1 $ 1 Interest cost 195 288 Amortization of: Net actuarial loss 12 14 Prior service cost (benefit) 1 ( 1 ) Net periodic other postretirement cost $ 209 $ 302 Contributions paid $ 345 $ 373 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards | Three-Months Ended December 31, 2019 2018 Weighted-average exercise price per share $ 104.82 $ 79.79 Weighted-average grant date market value of Woodward stock $ 104.82 $ 79.79 Expected term (years) 6.4 - 8.7 6.5 - 8.7 Estimated volatility 25.7 % - 30.1 % 25.7 % - 31.0 % Estimated dividend yield 0.6 % 0.7 % - 0.8 % Risk-free interest rate 1.6 % - 1.7 % 2.7 % - 3.1 % |
Summary of Activity for Stock Option Awards | Three-Months Ended December 31, 2019 Number of options Weighted-Average Exercise Price per Share Options, beginning balance 5,387 $ 53.73 Options granted 626 104.82 Options exercised ( 226 ) 33.42 Options forfeited ( 21 ) 81.53 Options, ending balance 5,766 59.97 |
Changes in Non-vested Stock Options | Three-Months Ended December 31, 2019 Number of options Weighted-Average Grant Date Fair Value per Share Non-vested options outstanding, beginning balance 2,068 $ 23.43 Options granted 626 28.55 Options vested ( 768 ) 21.43 Options forfeited ( 21 ) 25.19 Non-vested options outstanding, ending balance 1,905 25.90 |
Stock Options Vested, or Expected to Vest and Exercisable | Number Weighted- Average Exercise Price Weighted- Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 5,766 $ 59.97 6.2 $ 337,161 Options vested and exercisable 3,862 47.06 4.9 275,645 Options vested and expected to vest 5,640 59.30 6.1 333,494 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Activity for Restricted Stock Units | Three-Months Ended December 31, 2019 Number Weighted-Average Grant Date Fair Value per Unit Beginning balance 9 $ 91.55 Units granted - - Units vested - - Units forfeited - - Ending balance 9 91.55 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Summary of Consolidated Net Sales and Earnings by Segment | Three-Months Ended December 31, 2019 2018 Segment external net sales: Aerospace $ 473,925 $ 392,887 Industrial 246,430 259,924 Total consolidated net sales $ 720,355 $ 652,811 Segment earnings: Aerospace $ 92,911 $ 72,854 Industrial 28,230 29,169 Nonsegment expenses ( 51,071 ) ( 29,001 ) Interest expense, net ( 8,522 ) ( 11,507 ) Consolidated earnings before income taxes $ 61,548 $ 61,515 |
Summary of Consolidated Total Assets by Segment | December 31, 2019 September 30, 2019 Segment assets: Aerospace $ 1,905,846 $ 1,900,657 Industrial 1,520,687 1,561,441 Unallocated corporate property, plant and equipment, net 108,669 114,887 Other unallocated assets 471,967 379,541 Consolidated total assets $ 4,007,169 $ 3,956,526 |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
Operating right-of-use assets | $ 20,293 | |
Operating lease liabilities | $ 21,109 | |
ASC 842 [Member] | ||
Operating right-of-use assets | $ 18,894 | |
Operating lease liabilities | $ 18,851 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Billed accounts receivable due within | 60 days | ||
Noncurrent unbilled receivables | $ 1,562 | $ 1,573 | |
Revenue from contract liabilities | 3,970 | $ 9,760 | |
Remaining performance obligation amount | $ 1,562,813 | $ 1,527,437 | |
Woodward and General Electric Joint Venture [Member] | |||
Ownership interest, joint venture | 50.00% | ||
Material Rights [Member] | |||
Remaining performance obligation amount | $ 434,437 | ||
Net Sales [Member] | Manufactured Products [Member] | |||
Percentage of attributable to revenue | 87.00% | 87.00% | |
Net Sales [Member] | MRO Products [Member] | |||
Percentage of attributable to revenue | 12.00% | 11.00% |
Revenue (Narrative - Performanc
Revenue (Narrative - Performance Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Remaining performance obligation amount | $ 1,562,813 | $ 1,527,437 |
Material Rights [Member] | ||
Remaining performance obligation amount | 434,437 | |
Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | ||
Remaining performance obligation amount | $ 9,781 | |
Remaining performance obligation, expected timing of satisfaction, year | 2020 | |
Period of remaining performance obligation, expected timing of satisfaction | 9 months | |
Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | ||
Remaining performance obligation amount | $ 11,204 | |
Remaining performance obligation, expected timing of satisfaction, year | 2021 | |
Period of remaining performance obligation, expected timing of satisfaction | 1 year 9 months | |
Maximum [Member] | Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 40 years | |
Aerospace [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 2 years |
Revenue (Schedule of Revenue Re
Revenue (Schedule of Revenue Recognition Time) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 720,355 | $ 652,811 |
Point In Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 355,457 | 336,176 |
Over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 364,898 | 316,635 |
Aerospace [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 473,925 | 392,887 |
Aerospace [Member] | Point In Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 187,515 | 164,014 |
Aerospace [Member] | Over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 286,410 | 228,873 |
Industrial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 246,430 | 259,924 |
Industrial [Member] | Point In Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 167,942 | 172,162 |
Industrial [Member] | Over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 78,488 | $ 87,762 |
Revenue (Schedule of Accounts R
Revenue (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Contract With Customer Asset [Line Items] | ||
Less: Allowance for uncollectible amounts | $ (3,813) | $ (7,908) |
Net billed receivables | 366,974 | 416,205 |
Current unbilled receivables (contract assets), net | 205,469 | 175,324 |
Total accounts receivable, net | 572,443 | 591,529 |
Trade Accounts Receivable [Member] | ||
Contract With Customer Asset [Line Items] | ||
Billed receivables | 354,152 | 381,942 |
Other (Chinese Financial Institutions) [Member] | ||
Contract With Customer Asset [Line Items] | ||
Billed receivables | $ 16,635 | $ 42,171 |
Revenue (Schedule of Contract L
Revenue (Schedule of Contract Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | |
Contract With Customer Liability [Line Items] | |||
Current contract liabilities | $ 24,961 | $ 27,891 | |
Noncurrent contract liabilities | [1] | 341,008 | 337,165 |
Deferred Revenue From Material Rights From GE Joint Venture Formation [Member] | |||
Contract With Customer Liability [Line Items] | |||
Current contract liabilities | 8,186 | 8,317 | |
Noncurrent contract liabilities | 229,011 | 230,588 | |
Deferred Revenue From Advance Invoicing And/Or Prepayments From Customers [Member] | |||
Contract With Customer Liability [Line Items] | |||
Current contract liabilities | 4,200 | 4,554 | |
Noncurrent contract liabilities | 139 | 141 | |
Liability Related To Customer Supplied Inventory [Member] | |||
Contract With Customer Liability [Line Items] | |||
Current contract liabilities | 10,298 | 13,396 | |
Deferred Revenue From Material Rights Related To Engineering And Development Funding [Member] | |||
Contract With Customer Liability [Line Items] | |||
Current contract liabilities | 2,277 | 1,624 | |
Noncurrent contract liabilities | $ 111,858 | $ 106,436 | |
[1] | See Note 3, Revenue , for more information on net noncurrent contract liabilities. |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 720,355 | $ 652,811 |
United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 415,004 | 336,637 |
Germany [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 68,716 | 76,113 |
Europe, excluding Germany [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 89,488 | 98,960 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 64,088 | 65,889 |
Asia, excluding China [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 38,893 | 37,535 |
Other Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 44,166 | 37,677 |
Aerospace [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 473,925 | 392,887 |
Aerospace [Member] | United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 363,912 | 286,745 |
Aerospace [Member] | Germany [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 17,278 | 12,749 |
Aerospace [Member] | Europe, excluding Germany [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 38,987 | 39,612 |
Aerospace [Member] | China | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 10,212 | 15,638 |
Aerospace [Member] | Asia, excluding China [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 6,981 | 8,368 |
Aerospace [Member] | Other Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 36,555 | 29,775 |
Aerospace [Member] | Commercial OEM [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 158,666 | 140,508 |
Aerospace [Member] | Commercial Aftermarket [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 125,928 | 111,348 |
Aerospace [Member] | Defense OEM [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 140,926 | 101,836 |
Aerospace [Member] | Defense Aftermarket [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 48,405 | 39,195 |
Industrial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 246,430 | 259,924 |
Industrial [Member] | United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 51,092 | 49,892 |
Industrial [Member] | Germany [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 51,438 | 63,364 |
Industrial [Member] | Europe, excluding Germany [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 50,501 | 59,348 |
Industrial [Member] | China | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 53,876 | 50,251 |
Industrial [Member] | Asia, excluding China [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 31,912 | 29,167 |
Industrial [Member] | Other Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 7,611 | 7,902 |
Industrial [Member] | Reciprocating Engines [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 174,653 | 196,130 |
Industrial [Member] | Industrial Turbines [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 51,500 | 49,512 |
Industrial [Member] | Renewables [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 20,277 | $ 14,282 |
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 | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||
Net earnings | $ 53,373 | $ 49,120 |
Denominator: | ||
Basic shares outstanding | 61,991 | 61,818 |
Dilutive effect of stock options and restricted stock | 2,682 | 2,241 |
Diluted shares outstanding | 64,673 | 64,059 |
Income per common share: | ||
Basic earnings per share | $ 0.86 | $ 0.79 |
Diluted earnings per share | $ 0.83 | $ 0.77 |
Earnings Per Share (Anti-diluti
Earnings Per Share (Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share) (Details) - Stock Options [Member] - $ / shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options | 653 | 1,426 |
Weighted-average option price | $ 104.40 | $ 79.22 |
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 | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share | ||
Weighted-average treasury stock shares held for deferred compensation obligations | 213 | 206 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Lease initial term | 12 months | |
Total rental payments | $ 2,287 | |
Revenue included embedded operating leases | $ 1,564 | |
Renewable Power Systems [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Non-cash impairment charge | $ 1,136 |
Leases (Lease-Related Assets an
Leases (Lease-Related Assets and Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Assets: | |
Operating lease assets | $ 20,293 |
Finance lease assets | 1,519 |
Total lease assets | 21,812 |
Current liabilities: | |
Operating lease liabilities | 4,804 |
Finance lease liabilities | 1,598 |
Noncurrent liabilities: | |
Operating lease liabilities | 16,305 |
Finance lease liabilities | 2,339 |
Total lease liabilities | $ 25,046 |
Leases (Supplemental Lease-Rela
Leases (Supplemental Lease-Related Information) (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term, Operating leases | 6 years 1 month 6 days |
Weighted average remaining lease term, Finance leases | 2 years 7 months 6 days |
Weighted average discount rate, Operating leases | 3.30% |
Weighted average discount rate, Finance leases | 3.00% |
Leases (Lease-Related Expenses)
Leases (Lease-Related Expenses) (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019USD ($) | ||
Leases [Abstract] | ||
Operating lease expense | $ 1,519 | |
Amortization of finance lease assets | 147 | |
Interest on finance lease liabilities | 20 | |
Variable lease expense | 307 | |
Short-term lease expense | 175 | |
Sublease income | (125) | [1] |
Total lease expense | $ 2,043 | |
[1] | Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois. |
Leases (Lease-Related Supplemen
Leases (Lease-Related Supplemental Cash Flow Information) (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases | $ 1,254 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases | 20 |
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases | 439 |
Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases | 3,540 |
Right-of-use assets obtained in exchange for recorded lease obligations: Finance leases | $ 1,211 |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Year Ending September 30: | |
Operating Leases, 2020 (remaining) | $ 4,159 |
Operating Leases, 2021 | 4,531 |
Operating Leases, 2022 | 3,552 |
Operating Leases, 2023 | 2,840 |
Operating Leases, 2024 | 2,171 |
Operating Leases, Thereafter | 6,127 |
Operating Leases, Total lease payments | 23,380 |
Operating Leases, Less: imputed interest | (2,271) |
Operating Leases, Total lease obigations | 21,109 |
Year Ending September 30: | |
Finance Leases, 2020 (remaining) | 1,264 |
Finance Leases, 2021 | 1,678 |
Finance Leases, 2022 | 734 |
Finance Leases, 2023 | 321 |
Finance Leases, 2024 | 81 |
Finance Leases, Thereafter | |
Finance Leases, Total lease payments | 4,078 |
Finance Leases, Less: imputed interest | (141) |
Finance Leases, Total lease obigations | $ 3,937 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Year Ending September 30: | |
Operating Leases, 2020 (full twelve months) | $ 6,667 |
Operating Leases, 2021 | 5,119 |
Operating Leases, 2022 | 3,823 |
Operating Leases, 2023 | 2,899 |
Operating Leases, 2024 | 2,378 |
Operating Leases, Thereafter | 6,033 |
Operating Leases, Total minimum lease payments under ASC 840 | 26,919 |
Year Ending September 30: | |
Finance Leases, 2020 (full twelve months) | 213 |
Finance Leases, 2021 | 98 |
Finance Leases, 2022 | 33 |
Finance Leases, 2023 | 3 |
Finance Leases, 2024 | |
Finance Leases, Thereafter | |
Finance Leases, Total minimum lease payments under ASC 840 | $ 347 |
Leases (Property, Plant and Equ
Leases (Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Property, plant and equipment leased to others through embedded leasing arrangements | $ 38,612 |
Less accumulated depreciation | (21,618) |
Property, plant and equipment leased to others through embedded leasing arrangements, net | $ 16,994 |
Joint Venture (Narrative) (Deta
Joint Venture (Narrative) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Agreement to Form Joint Venture, Execution Date | Jan. 4, 2016 | ||
Ownership interest, joint venture | 50.00% | ||
Other Liabilities [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Contract liabilities | $ 71,364 | $ 69,079 | |
Other Assets [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Costs to fulfill a contract | 71,364 | $ 69,079 | |
Sales [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Amortization of deferred income recognized as an increase to sales | 1,708 | $ 1,777 | |
Reduction to sales related to royalties paid to joint venture | $ 7,234 | $ 9,182 |
Joint Venture (Unamortized Defe
Joint Venture (Unamortized Deferred Revenue from JV) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Accrued liabilities | $ 8,186 | $ 8,317 |
Other liabilities | $ 229,011 | $ 230,588 |
Joint Venture (Net Sales to the
Joint Venture (Net Sales to the JV) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Woodward and General Electric Joint Venture [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Net sales | [1] | $ 14,878 | $ 12,833 |
[1] | Woodward recorded a reduction to sales of $ 7,234 for the three-months ended December 31, 2019 related to royalties paid to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $ 9,182 for the three-months ended December 31, 2018. |
Joint Venture (Other Income Rel
Joint Venture (Other Income Related JV) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Other income | $ 3,212 | $ 1,465 |
Woodward and General Electric Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other income | $ 3,212 | $ 1,465 |
Joint Venture (Cash Distributio
Joint Venture (Cash Distribution from JV) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Woodward and General Electric Joint Venture [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Cash distributions | $ 3,000 | $ 4,500 |
Joint Venture (Accounts Receiva
Joint Venture (Accounts Receivable, Accounts Payable, and Other Assets Related to JV) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable | $ 5,442 | $ 5,906 |
Accounts payable | 2,504 | 4,270 |
Other assets | $ 7,755 | $ 7,543 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Narrative) (Details) $ in Thousands | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Investments in Short-Term Time Deposits [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate used to measure short-term time deposits | 4.9 | 5.7 |
Long Term Notes Receivable From Municipalities [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate used to measure municipal notes | 1.8 | 1.7 |
Long-Term Debt [Member] | Measurement Input, Discount Rate [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate used to measure long-term debt | 2.5 | 2.5 |
Cross Currency Interest Rate Swaps [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cross currency interest rate swaps, assets | $ 13,474 | $ 24,758 |
Cross Currency Interest Rate Swaps [Member] | Other Assets [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cross currency interest rate swaps, assets | 13,474 | 24,758 |
Cross Currency Interest Rate Swaps [Member] | Other Liabilities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Cross currency interest rate swaps, liabilities |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Financial Assets that are Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 197,068 | $ 144,335 |
Cross Currency Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross currency interest rate swaps, assets | 13,474 | 24,758 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 171,644 | 119,577 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 13,474 | 24,758 |
Level 2 [Member] | Cross Currency Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cross currency interest rate swaps, assets | 13,474 | 24,758 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 11,950 | |
Cash [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 85,366 | 52,971 |
Cash [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 85,366 | 52,971 |
Investments in Reverse Repurchase Agreements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 271 | 886 |
Investments in Reverse Repurchase Agreements [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 271 | 886 |
Investments in Term Deposits with Foreign Banks [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 62,371 | 45,216 |
Investments in Term Deposits with Foreign Banks [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 62,371 | 45,216 |
Equity Securities [Member} | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 23,636 | 20,504 |
Equity Securities [Member} | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 23,636 | $ 20,504 |
Net Assets Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net assets held for sale (Note 10) | 11,950 | |
Net Assets Held for Sale [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net assets held for sale (Note 10) | $ 11,950 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable from municipalities, Carrying Cost | $ 12,020 | $ 12,346 |
Investments in short-term time deposits, Carrying Cost | 13,386 | 13,509 |
Long-term debt, Carrying Cost | (833,172) | (867,377) |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable from municipalities, Estimated Fair Value | 12,868 | 13,100 |
Investments in short-term time deposits, Estimated Fair Value | 13,371 | 13,468 |
Long-term debt, Estimated Fair Value | $ (887,834) | $ (928,618) |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Thousands | 3 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | May 31, 2018USD ($)loan | Sep. 23, 2016EUR (€) | |
Total Accumulated Other Comprehensive (Loss) Earnings [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Remaining unrecognzied gains (losses) associated with derivative instruments included in AOCI | $ 4,642 | $ 5,004 | |||
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, number of instruments | loan | 5 | ||||
Derivative, notional amount | $ 400,000 | ||||
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | 400,000 | ||||
Floating-Rate Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, notional amount | $ 167,420 | ||||
2016 Note Purchase Agreements [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Issuance date | Sep. 23, 2016 | ||||
Face amount | € | € 160,000,000 | ||||
Series M Notes [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) on foreign currency transaction designated as a hedge of a net investment in a foreign subsidiary | $ (1,045) | $ 649 | |||
Face amount | € | € 40,000,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Impact of Derivative Instruments on Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Income) Expense Recognized in Earnings on Derivative | $ 11,249 | $ (7,963) |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | 11,294 | (18,563) |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | 11,656 | (7,826) |
Floating-Rate Cross Currency Interest Rate Contract [Member] | Selling, General and Administrative Expenses [Member] | Derivatives in Fair Value Hedging Relationships [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Income) Expense Recognized in Earnings on Derivative | 2,276 | (2,389) |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | 3,598 | (2,505) |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | 2,683 | (2,252) |
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Selling, General and Administrative Expenses [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Income) Expense Recognized in Earnings on Derivative | 8,991 | (5,556) |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | 7,696 | (16,058) |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | 8,991 | (5,556) |
Treasury Lock [Member] | Interest Expense [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Income) Expense Recognized in Earnings on Derivative | (18) | (18) |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ (18) | $ (18) |
Supplemental Statement of Cas_3
Supplemental Statement of Cash Flows Information (Schedule of Supplemental Statement of Cash Flows Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Statement of Cash Flows Information | ||
Interest paid, net of amounts capitalized | $ 10,749 | $ 16,754 |
Income taxes paid | 7,086 | 15,858 |
Income tax refunds received | 12 | 444 |
Non-cash activities: | ||
Purchases of property, plant and equipment on account | 2,551 | 4,580 |
Impact of the adoption of ASC 606 | 38,700 | |
Impact of the adoption of ASC 842 (Note 5) | $ 255 | |
Impact of the adoption of ASU 2016-16 | $ 1,005 |
Impairment of Assets Held for_3
Impairment of Assets Held for Sale (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Impairment of assets held for sale | $ 37,902 | |
Renewable Power Systems [Member] | ||
Non-cash impairment charge | 23,464 | |
Total assets held for sale, net of valuation allowance | 22,136 | |
Total liabilities held for sale | 10,186 | |
Impairment of assets held for sale | 37,902 | |
Renewable Power Systems [Member] | Level 3 [Member] | ||
Net assets held for sale | $ 11,950 | |
Renewable Power Systems [Member] | AURELIUS Group [Member] | Subsequent Event [Member] | ||
Purchase price | $ 23,400 |
Impairment of Assets Held for_4
Impairment of Assets Held for Sale (Valuation Allowance against Assets and Liabilities Held for Sale) (Details) - Renewable Power Systems [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Assets: | |
Accounts receivable | $ 18,140 |
Inventories | 17,929 |
Other current assets | 363 |
Other assets | 142 |
Total assets | 36,574 |
Valuation, allowance | (14,438) |
Total assets, net | 22,136 |
Liabilities: | |
Accounts payable | 1,962 |
Accrued liabilities | 7,733 |
Other liabilities | 491 |
Total liabilities | $ 10,186 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | |
Inventories | |||
Raw materials | $ 142,911 | $ 134,878 | |
Work in progress | 136,873 | 133,885 | |
Component parts | [1] | 285,792 | 287,128 |
Finished goods | 72,483 | 59,051 | |
Customer supplied inventory | 10,298 | 13,396 | |
On-hand inventory for which control has transferred to the customer | (128,091) | (111,502) | |
Inventory, net | $ 520,266 | $ 516,836 | |
[1] | Component parts include items that can be sold separately as finished goods or included in the manufacture of other products. |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Property, Plant and Equipment [Line Items] | |||
Net (gain) loss on sales of assets | [1] | $ (13,547) | $ 79 |
Impairment of assets held for sale | 37,902 | ||
Duarte Facility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Net (gain) loss on sales of assets | (13,522) | ||
Renewable Power Systems [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of assets held for sale | 37,902 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Duarte Facility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment remaining | 2,520 | ||
Plant, Property and Equipment [Member] | Renewable Power Systems [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of assets held for sale | $ 13,158 | ||
[1] | Included in net (gain) loss on sale of assets for the first quarter of fiscal year 2020 was the pre-tax gain on sale of Duarte real property in the amount of $ 13,522 . |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment (Schedule of Property Plant and Equipment, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 1,648,855 | $ 1,672,227 |
Less accumulated depreciation | (615,277) | (613,452) |
Property, plant, and equipment, net | 1,033,578 | 1,058,775 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 89,483 | 94,976 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 575,988 | 587,541 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 17,810 | 17,446 |
Machinery and Production Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 733,995 | 731,159 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 123,187 | 124,201 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 40,002 | 39,934 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 19,162 | 19,346 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 49,228 | $ 57,624 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment (Schedule of Depreciation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant, and Equipment | ||
Depreciation expense | $ 22,546 | $ 21,169 |
Property, Plant, and Equipmen_5
Property, Plant, and Equipment (Schedule of Capitalized Interest) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant, and Equipment | ||
Capitalized interest | $ 34 | $ 227 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Goodwill [Line Items] | ||
Impairment charge | $ 8,777 | $ 0 |
Aerospace [Member] | ||
Goodwill [Line Items] | ||
Impairment charge | ||
Industrial [Member] | ||
Goodwill [Line Items] | ||
Impairment charge | 8,777 | |
Renewable Power Systems [Member] | ||
Goodwill [Line Items] | ||
Impairment charge | $ 8,777 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 797,853 | |
Impairment Charges | (8,777) | $ 0 |
Effects of Foreign Currency Translation | 6,705 | |
Goodwill, Ending Balance | 795,781 | 797,853 |
Aerospace [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 455,423 | |
Impairment Charges | ||
Effects of Foreign Currency Translation | ||
Goodwill, Ending Balance | 455,423 | 455,423 |
Industrial [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 342,430 | |
Impairment Charges | (8,777) | |
Effects of Foreign Currency Translation | 6,705 | |
Goodwill, Ending Balance | $ 340,358 | $ 342,430 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Intangible Assets, Net [Line Items] | ||
Impairment of intangible assets, Indefinite-lived | $ 0 | |
Renewable Power Systems [Member] | ||
Intangible Assets, Net [Line Items] | ||
Impairment of intangible assets, Indefinite-lived | $ 392 |
Intangible Assets, Net (Schedul
Intangible Assets, Net (Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross, Total | $ 979,433 | $ 983,266 |
Accumulated Amortization of Finite-Lived Intangible | (366,298) | (371,274) |
Net Carrying Amount - Finite-Lived Intangible | 548,162 | |
Intangible Assets, Net, Total | 613,135 | 611,992 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 64,973 | 63,467 |
Customer Relationships And Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 693,119 | 689,366 |
Accumulated Amortization of Finite-Lived Intangible | (229,245) | (225,981) |
Net Carrying Amount - Finite-Lived Intangible | 463,874 | 463,385 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 15,790 | 19,201 |
Accumulated Amortization of Finite-Lived Intangible | (15,513) | (18,705) |
Net Carrying Amount - Finite-Lived Intangible | 277 | 496 |
Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 163,871 | 169,191 |
Accumulated Amortization of Finite-Lived Intangible | (79,966) | (84,839) |
Net Carrying Amount - Finite-Lived Intangible | 83,905 | 84,352 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 41,456 | 40,500 |
Accumulated Amortization of Finite-Lived Intangible | (41,456) | (40,500) |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 224 | 1,541 |
Accumulated Amortization of Finite-Lived Intangible | (118) | (1,249) |
Net Carrying Amount - Finite-Lived Intangible | 106 | 292 |
Aerospace [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross, Total | 358,054 | 358,054 |
Accumulated Amortization of Finite-Lived Intangible | (246,550) | (241,908) |
Intangible Assets, Net, Total | 111,504 | 116,146 |
Aerospace [Member] | Customer Relationships And Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 281,683 | 281,683 |
Accumulated Amortization of Finite-Lived Intangible | (185,626) | (181,995) |
Net Carrying Amount - Finite-Lived Intangible | 96,057 | 99,688 |
Aerospace [Member] | Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 76,371 | 76,371 |
Accumulated Amortization of Finite-Lived Intangible | (60,924) | (59,913) |
Net Carrying Amount - Finite-Lived Intangible | 15,447 | 16,458 |
Industrial [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross, Total | 621,379 | 625,212 |
Accumulated Amortization of Finite-Lived Intangible | (119,748) | (129,366) |
Intangible Assets, Net, Total | 501,631 | 495,846 |
Industrial [Member] | Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 64,973 | 63,467 |
Industrial [Member] | Customer Relationships And Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 411,436 | 407,683 |
Accumulated Amortization of Finite-Lived Intangible | (43,619) | (43,986) |
Net Carrying Amount - Finite-Lived Intangible | 367,817 | 363,697 |
Industrial [Member] | Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 15,790 | 19,201 |
Accumulated Amortization of Finite-Lived Intangible | (15,513) | (18,705) |
Net Carrying Amount - Finite-Lived Intangible | 277 | 496 |
Industrial [Member] | Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 87,500 | 92,820 |
Accumulated Amortization of Finite-Lived Intangible | (19,042) | (24,926) |
Net Carrying Amount - Finite-Lived Intangible | 68,458 | 67,894 |
Industrial [Member] | Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 41,456 | 40,500 |
Accumulated Amortization of Finite-Lived Intangible | (41,456) | (40,500) |
Net Carrying Amount - Finite-Lived Intangible | 0 | 0 |
Industrial [Member] | Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 224 | 1,541 |
Accumulated Amortization of Finite-Lived Intangible | (118) | (1,249) |
Net Carrying Amount - Finite-Lived Intangible | $ 106 | $ 292 |
Intangible Assets, Net (Sched_2
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets, Net [Abstract] | ||
Amortization expense | $ 9,905 | $ 17,472 |
Intangible Assets, Net (Sched_3
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Intangible Assets, Net [Abstract] | |
2020 (remaining) | $ 29,344 |
2021 | 40,390 |
2022 | 38,279 |
2023 | 37,228 |
2024 | 33,451 |
Thereafter | 369,470 |
Total Finite-Lived Intangible Assets, Net | $ 548,162 |
Credit Facilities, Short-term_3
Credit Facilities, Short-term Borrowings and Long-term Debt (Narrative) (Details) | 3 Months Ended | ||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | May 31, 2018USD ($) | Sep. 23, 2016EUR (€) | Oct. 01, 2013USD ($) | |
Debt Instrument [Line Items] | |||||
Balance of unamortized debt issuance costs | $ 2,398,000 | $ 2,478,000 | |||
Short-term borrowings | 283,168,000 | 220,000,000 | |||
The Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Balance of unamortized debt issuance costs | $ 2,398,000 | 2,478,000 | |||
2013 Note Purchase Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 250,000,000 | ||||
Series J Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Nov. 15, 2020 | ||||
Effective interest rate | 3.15% | ||||
Series J Notes [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
2016 Note Purchase Agreements [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance date | Sep. 23, 2016 | ||||
Face amount | € | € 160,000,000 | ||||
Series M Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | € | 40,000,000 | ||||
Maturity date | Sep. 23, 2026 | ||||
Series N Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | € | 77,000,000 | ||||
Maturity date | Sep. 23, 2028 | ||||
Series O Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | € | € 43,000,000 | ||||
Maturity date | Sep. 23, 2031 | ||||
2018 Note Purchase Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 400,000,000 | ||||
Series P Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | 85,000,000 | 85,000,000 | |||
Maturity date | May 30, 2025 | ||||
Series Q Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | 85,000,000 | ||||
Maturity date | May 30, 2027 | ||||
Series R Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | 75,000,000 | ||||
Maturity date | May 30, 2029 | ||||
Series S Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | 75,000,000 | ||||
Maturity date | May 30, 2030 | ||||
Series T Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 80,000,000 | ||||
Maturity date | May 30, 2033 | ||||
Series G And J Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Nov. 15, 2020 | ||||
Foreign Lines of Credit And Overdraft Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 0 | 0 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Jun. 19, 2024 | ||||
Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.875% | ||||
Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Revolving Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Balance of unamortized debt issuance costs, line of credit | $ 2,791,000 | $ 2,840,000 | |||
Cross Currency Interest Rate Swaps [Member] | Series P Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 1.82% | ||||
Cross Currency Interest Rate Swaps [Member] | Series Q Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 2.15% | ||||
Cross Currency Interest Rate Swaps [Member] | Series R Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 2.42% | ||||
Cross Currency Interest Rate Swaps [Member] | Series S Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 2.55% | ||||
Cross Currency Interest Rate Swaps [Member] | Series T Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 2.90% |
Credit Facilities, Short-term_4
Credit Facilities, Short-term Borrowings and Long-term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (2,398) | $ (2,478) |
Long-term debt | 830,774 | 864,899 |
Less: Current portion of long-term debt | 101,598 | |
Long-term debt, less current portion | $ 729,176 | 864,899 |
Series G Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.42% | |
Maturity date | Nov. 15, 2020 | |
Series G Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50,000 | 50,000 |
Series H Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.03% | |
Maturity date | Nov. 15, 2023 | |
Series H Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 25,000 | 25,000 |
Series I Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.18% | |
Maturity date | Nov. 15, 2025 | |
Series I Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 25,000 | 25,000 |
Series J Notes [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 3.15% | |
Maturity date | Nov. 15, 2020 | |
Series J Notes [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Series J Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50,000 | 50,000 |
Series K Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.03% | |
Maturity date | Nov. 15, 2023 | |
Series K Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50,000 | 50,000 |
Series L Notes [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 4.18% | |
Maturity date | Nov. 15, 2025 | |
Series L Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50,000 | 50,000 |
Series M Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.12% | |
Maturity date | Sep. 23, 2026 | |
Series M Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 44,809 | 43,770 |
Series N Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.31% | |
Maturity date | Sep. 23, 2028 | |
Series N Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 86,257 | 84,257 |
Series O Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.57% | |
Maturity date | Sep. 23, 2031 | |
Series O Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 48,169 | 47,053 |
Series P Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.27% | |
Maturity date | May 30, 2025 | |
Series P Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 85,000 | 85,000 |
Series Q Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.35% | |
Maturity date | May 30, 2027 | |
Series Q Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 85,000 | 85,000 |
Series R Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.41% | |
Maturity date | May 30, 2029 | |
Series R Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 75,000 | 75,000 |
Series S Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.46% | |
Maturity date | May 30, 2030 | |
Series S Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 75,000 | 75,000 |
Series T Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.61% | |
Maturity date | May 30, 2033 | |
Series T Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 80,000 | 80,000 |
Finance Leases [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,937 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 19, 2024 | |
Long-term debt | $ 42,297 | |
Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.875% | |
Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% |
Accrued Liabilities (Narrative)
Accrued Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | |||
Duarte Relocation Restructuring Charge Reserve | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 17,013 |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Accrued Liabilities [Abstract] | |||||
Salaries and other member benefits | $ 62,352 | $ 115,649 | |||
Warranties | 18,927 | 27,309 | $ 20,156 | $ 20,130 | |
Interest payable | 5,807 | 13,808 | |||
Accrued retirement benefits | 3,608 | 3,587 | |||
Current portion of loss reserve on contractual lease commitments | [1] | 1,245 | |||
Restructuring charges | 255 | 507 | |||
Taxes, other than income | 17,763 | 15,708 | |||
Net current contract liabilities (Note 3) | 24,961 | 27,891 | |||
Liabilities held for sale (Note 10) | 10,186 | ||||
Other | 24,230 | 22,423 | |||
Accrued liabilities | $ 168,089 | $ 228,127 | |||
[1] | See Note 17, Other liabilities , for more information on loss reserve on contractual lease commitments. |
Accrued Liabilities (Changes in
Accrued Liabilities (Changes in Accrued Product Warranties) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accrued Liabilities [Abstract] | ||
Warranties, beginning of period | $ 27,309 | $ 20,130 |
Impact from adoption of ASC 606 | 594 | |
Expense, net of recoveries | 2,072 | |
Expense, net of recoveries | (4,333) | |
Reductions for settling warranties | (4,277) | (2,537) |
Foreign currency exchange rate changes | 228 | (103) |
Warranties, end of period | $ 18,927 | $ 20,156 |
Accrued Liabilities (Changes _2
Accrued Liabilities (Changes in Restructuring Reserve Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges, beginning of period | $ 507 | $ 16,522 |
Charges (reductions) | ||
Cash receipts (payments) | (228) | (679) |
Non-cash adjustments | (24) | |
Restructuring charges, end of period | 255 | 15,843 |
Duarte Relocation Restructuring Charge Reserve | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges, beginning of period | 440 | 12,504 |
Charges (reductions) | ||
Cash receipts (payments) | (228) | |
Non-cash adjustments | ||
Restructuring charges, end of period | 212 | 12,504 |
Industrial Turbomachinery Business Realignment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges, beginning of period | 67 | 4,018 |
Charges (reductions) | ||
Cash receipts (payments) | (679) | |
Non-cash adjustments | (24) | |
Restructuring charges, end of period | $ 43 | $ 3,339 |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 | Sep. 30, 2019 | |
Other Liabilities [Line Items] | ||||
Net accrued retirement benefits, less amounts recognized within accrued liabilities | $ 114,739 | $ 111,257 | ||
Total unrecognized tax benefits | 11,004 | 10,644 | ||
Noncurrent income taxes payable | 20,251 | 20,251 | ||
Deferred economic incentives | [1] | 9,728 | 11,535 | |
Loss reserve on contractual lease commitments | [2] | 1,754 | ||
Net noncurrent contract liabilities | [3] | 341,008 | 337,165 | |
Other | 36,052 | 13,482 | ||
Other liabilities | 532,782 | $ 506,088 | ||
Finance lease liability | $ 3,937 | |||
Loss Reserve On Contractual Lease Commitments [Member] | ||||
Other Liabilities [Line Items] | ||||
Finance lease liability | $ 2,688 | |||
[1] | 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 are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects. | |||
[2] | In connection with the construction of a new production facility in Niles, Illinois, Woodward vacated a lease facility in Skokie, Illinois, and recorded a loss reserve on the estimated remaining contractual lease commitment, net of anticipated sublease income. As of September 30, 2019, the current portion of the accrued loss reserve on contractual lease commitments was included in “accrued liabilities” (see Note 16, Accrued liabilities ). Woodward adopted ASC 842 on October 1, 2019, which requires that any pre-adoption liabilities related to exit or disposal cost obligations reduce the amount of the ROU asset recognized upon adoption. Accordingly, as of October 1, 2019, Woodward recognized a finance lease liability of $ 2,688 consisting of the future lease component payments, with no corresponding ROU asset recognized, and reduced the current and noncurrent portions of the loss reserve on contractual lease commitments to zero. The amount of the finance lease liability will be reduced in an amount equal to the lease payments made over the remaining term of the lease, which ends in 2022. Future non-lease component payments on the lease and future sublease income received will be recognized in the periods in which they are earned. | |||
[3] | See Note 3, Revenue , for more information on net noncurrent contract liabilities. |
Other (Income) Expense, Net (Sc
Other (Income) Expense, Net (Schedule of Other (Income) Expense, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Equity interest in the earnings of the JV (Note 6) | $ (3,212) | $ (1,465) | |
Net (gain) loss on sales of assets | [1] | (13,547) | 79 |
Rent income | (251) | (67) | |
Net (gain) loss on investments in deferred compensation program | (1,244) | 1,729 | |
Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense | (3,047) | (3,243) | |
Other | (124) | (212) | |
Other (income) expense, net | (21,425) | $ (3,179) | |
Duarte Facility [Member] | |||
Net (gain) loss on sales of assets | $ (13,522) | ||
[1] | Included in net (gain) loss on sale of assets for the first quarter of fiscal year 2020 was the pre-tax gain on sale of Duarte real property in the amount of $ 13,522 . |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Income Taxes [Line Items] | ||
Gross unrecognized tax benefits | $ 10,631 | $ 10,305 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 4,582 | |
Accrued interest and penalties | $ 481 | $ 437 |
Domestic Tax Authority [Member] | ||
Income Taxes [Line Items] | ||
Year remaining open to tax examination | 2017 | |
Internal Revenue Service (IRS) [Member] | ||
Income Taxes [Line Items] | ||
Year under examination | 2017 | |
State and Local Jurisdiction [Member] | ||
Income Taxes [Line Items] | ||
Year remaining open to tax examination | 2015 | |
Foreign Jurisdiction [Member] | ||
Income Taxes [Line Items] | ||
Year remaining open to tax examination | 2016 |
Income Taxes (Tax Expense and E
Income Taxes (Tax Expense and Effective Tax Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Earnings before income taxes | $ 61,548 | $ 61,515 |
Income tax expense | $ 8,175 | $ 12,395 |
Effective tax rate | 13.30% | 20.10% |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
UK High Court Ruling Amendment | $ 601 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Amount of Expense Associated with Defined Contribution Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Company costs | $ 8,704 | $ 8,371 |
Retirement Benefits (Schedule_2
Retirement Benefits (Schedule of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,125 | $ 875 |
Interest cost | 1,719 | 2,076 |
Expected return on plan assets | (3,919) | (3,658) |
Amortization of: Net actuarial loss | 619 | 225 |
Amortization of: Prior service cost (benefit) | 240 | 177 |
Net periodic retirement pension (benefit) cost | (216) | (305) |
Contributions paid | 1,131 | 554 |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 195 | 288 |
Amortization of: Net actuarial loss | 12 | 14 |
Amortization of: Prior service cost (benefit) | 1 | (1) |
Net periodic retirement pension (benefit) cost | 209 | 302 |
Contributions paid - other postretirement plans | 345 | 373 |
United States [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 415 | 363 |
Interest cost | 1,398 | 1,596 |
Expected return on plan assets | (3,087) | (2,996) |
Amortization of: Net actuarial loss | 358 | 154 |
Amortization of: Prior service cost (benefit) | 234 | 177 |
Net periodic retirement pension (benefit) cost | (682) | (706) |
Other Countries [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 710 | 512 |
Interest cost | 321 | 480 |
Expected return on plan assets | (832) | (662) |
Amortization of: Net actuarial loss | 261 | 71 |
Amortization of: Prior service cost (benefit) | 6 | |
Net periodic retirement pension (benefit) cost | 466 | 401 |
Contributions paid | $ 1,131 | $ 554 |
Retirement Benefits (Schedule_3
Retirement Benefits (Schedule of Estimated Remaining Cash Contributions) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Other Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the currect fiscal year | $ 2,892 |
United States [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the currect fiscal year | |
United Kingdom | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the currect fiscal year | 370 |
Japan | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the currect fiscal year | |
Germany [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the currect fiscal year | $ 911 |
Retirement Benefits (Schedule_4
Retirement Benefits (Schedule of Amounts of Contributions Associated with Multiemployer Defined Benefit Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Multiemployer Plans [Abstract] | ||
Company contributions | $ 70 | $ 77 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | Jan. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 10,982 | |||||
Forfeiture rate, Board of Directors | 0.00% | |||||
Forfeiture rate, non-Board of Directors | 9.00% | |||||
Unrecognized compensation cost is expected to be recognized over a weighted-average period | 2 years 4 months 24 days | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested contractual term, in years | 10 years | |||||
Vesting period, in years | 4 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, in years | 2 years | |||||
2017 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of additional shares available for future grants | 1,400 | |||||
Share-based Payment Arrangement, Tranche One [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rate | 25.00% | |||||
Share-based Payment Arrangement, Tranche One [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rate | 50.00% | |||||
2017 Authorization [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Repurchase period in years | 3 years | |||||
Shares of common stock repurchased | 0 | |||||
2017 Authorization [Member] | 2017 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for future grants | 1,178 | 1,783 | ||||
2019 Authorization [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Repurchase period in years | 3 years | |||||
Shares of common stock repurchased | 0 | |||||
Hexcel Merger [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount of prior share repurchase allowable | $ 17,000 | |||||
Maximum [Member] | 2017 Authorization [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program authorized amount | $ 500,000 | |||||
Maximum [Member] | 2019 Authorization [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program authorized amount | $ 500,000 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards) (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 6 years 4 months 24 days | 6 years 6 months |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 8 years 8 months 12 days | 8 years 8 months 12 days |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average exercise price per share | $ 104.82 | $ 79.79 |
Weighted-average grant date market value of Woodward stock | $ 104.82 | 79.79 |
Estimated dividend yield | 0.60% | |
Stock Options [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average exercise price per share | 79.79 | |
Weighted-average grant date market value of Woodward stock | $ 79.79 | |
Estimated volatility | 25.70% | 25.70% |
Estimated dividend yield | 0.60% | 0.70% |
Risk-free interest rate | 1.60% | 2.70% |
Stock Options [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated volatility | 30.10% | 31.00% |
Estimated dividend yield | 0.80% | |
Risk-free interest rate | 1.70% | 3.10% |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Activity for Stock Option Awards) (Details) - Stock Options [Member] shares in Thousands | 3 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options, beginning balance | shares | 5,387 |
Weighted Average Exercise Price Per Share, beginning balance | $ / shares | $ 53.73 |
Options granted, Number of options | shares | 626 |
Options granted, Weighted Average Exercise Price Per Share | $ / shares | $ 104.82 |
Options exercised, Number of options | shares | (226) |
Options exercised, Weighted Average Exercise Price Per Share | $ / shares | $ 33.42 |
Options forfeited, Number of options | shares | (21) |
Options forfeited, Weighted Average Exercise Price Per Share | $ / shares | $ 81.53 |
Number of options, ending balance | shares | 5,766 |
Weighted Average Exercise Price Per Share, ending balance | $ / shares | $ 59.97 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Non-vested Stock Options) (Details) - Stock Options [Member] shares in Thousands | 3 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options, beginning balance | shares | 2,068 |
Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ / shares | $ 23.43 |
Options granted, Number of options | shares | 626 |
Options granted, Weighted-Average Grant Date Fair Value Per Share | $ / shares | $ 28.55 |
Options vested, Number of options | shares | (768) |
Options vested, Weighted-Average Grant Date Fair Value Per Share | $ / shares | $ 21.43 |
Options forfeited, Number of options | shares | (21) |
Options forfeited, Weighted-Average Grant Date Fair Value Per Share | $ / shares | $ 25.19 |
Number of Options, ending balance | shares | 1,905 |
Weighted-Average Grant Date Fair Value Per Share, ending balance | $ / shares | $ 25.90 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Options Vested, or Expected to Vest and Exercisable) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding, Number of options | 5,766 | 5,387 |
Options outstanding, Weighted-Average Exercise Price | $ 59.97 | $ 53.73 |
Options outstanding, Weighted-Average Remaining Life in Years | 6 years 2 months 12 days | |
Options outstanding, Aggregate Intrinsic Value | $ 337,161 | |
Options vested and exercisable, Number of options | 3,862 | |
Options vested and exercisable, Weighted-Average Exercise Price Per Share | $ 47.06 | |
Options vested and exercisable, Weighted-Average Remaining Life in Years | 4 years 10 months 24 days | |
Options vested and exercisable, Aggregate Intrinsic Value | $ 275,645 | |
Options vested and expected to vest, Number of options | 5,640 | |
Options vested and expected to vest, Weighted-Average Exercise Price Per Share | $ 59.30 | |
Options vested and expected to vest, Weighted-Average Remaining Life in Years | 6 years 1 month 6 days | |
Options vested and expected to vest, Aggregate Intrinsic Value | $ 333,494 |
Stockholders' Equity (Summary_2
Stockholders' Equity (Summary of Activity for Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 3 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units, beginning balance | shares | 9 |
Weighted-Average Grant Date Fair Value Per Unit, beginning balance | $ / shares | $ 91.55 |
Units granted, Number | shares | |
Units granted, Weighted-Average Grant Date Fair Value Per Unit | $ / shares | |
Units vested, Number | shares | |
Units vested, Weighted-Average Grant Date Fair Value Per Unit | $ / shares | |
Units forfeited, Number | shares | |
Units forfeited, Weighted-Average Grant Date Fair Per Unit | $ / shares | |
Number of units, ending balance | shares | 9 |
Weighted-Average Grant Date Fair Value Per Unit, ending balance | $ / shares | $ 91.55 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2019 | |
Officer [Member] | |
Loss Contingencies [Line Items] | |
Period in which payments of termination benefits required for employment terminated following change of control | 2 years |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2019segment | |
Segment Information [Abstract] | |
Number of Reportable Segments | 2 |
Segment Information (Summary of
Segment Information (Summary of Consolidated Net Sales and Earnings by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Consolidated net sales | $ 720,355 | $ 652,811 |
Interest expense, net | (8,522) | (11,507) |
Consolidated earnings before income taxes | 61,548 | 61,515 |
Aerospace [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated net sales | 473,925 | 392,887 |
Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated net sales | 246,430 | 259,924 |
Operating Segments [Member] | Aerospace [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated net sales | 473,925 | 392,887 |
Segment earnings (loss) | 92,911 | 72,854 |
Operating Segments [Member] | Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated net sales | 246,430 | 259,924 |
Segment earnings (loss) | 28,230 | 29,169 |
Unallocated Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment earnings (loss) | $ (51,071) | $ (29,001) |
Segment Information (Summary _2
Segment Information (Summary of Consolidated Total Assets by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 4,007,169 | $ 3,956,526 |
Property, plant and equipment, net | 1,033,578 | 1,058,775 |
Other assets | 217,163 | 198,517 |
Unallocated Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 108,669 | 114,887 |
Other assets | 471,967 | 379,541 |
Aerospace [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 1,905,846 | 1,900,657 |
Industrial [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 1,520,687 | $ 1,561,441 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Jan. 31, 2020 | Jan. 29, 2020 |
Subsequent Event [Line Items] | ||||||
Par value per share | $ 0.001455 | $ 0.001455 | ||||
Dividend, declared date | Jan. 29, 2020 | |||||
Dividend, payable date | Mar. 3, 2020 | |||||
Dividend, record date | Feb. 18, 2020 | |||||
Net sales | $ 720,355 | $ 652,811 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividend per share | $ 0.28 | |||||
Hexcel Merger [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares converted of common stock of Woodward | 0.6250 | |||||
Hexcel Merger [Member] | Hexcel Common Stock [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Par value per share | $ 0.01 | |||||
Renewable Power Systems [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Net sales | $ 80,000 | |||||
AURELIUS Group [Member] | Renewable Power Systems [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Purchase price | $ 23,400 | |||||
Promissory note | $ 6,000 |
Uncategorized Items - wwd-20191
Label | Element | Value |
Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | ||
Line Of Credit Facility Maximum Borrowing Capacity Extension | wwd_LineOfCreditFacilityMaximumBorrowingCapacityExtension | $ 1,500,000,000 |
Line of Credit Facility, Maximum Borrowing Capacity | us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity | 1,000,000,000 |
Revolving Credit Facility [Member] | Revolving Credit Agreement [Member] | ||
Short-term Debt | us-gaap_ShortTermBorrowings | 220,000,000 |
Outstanding borrowings | us-gaap_LineOfCreditFacilityFairValueOfAmountOutstanding | 283,168,000 |
Outstanding borrowings | us-gaap_LineOfCreditFacilityFairValueOfAmountOutstanding | $ 262,297,000 |
Variable interest rate | us-gaap_DebtInstrumentInterestRateEffectivePercentage | 2.67% |
Variable interest rate | us-gaap_DebtInstrumentInterestRateEffectivePercentage | 3.01% |
Debt Instrument, Maturity Date | us-gaap_DebtInstrumentMaturityDate | Jun. 19, 2024 |
Revolving Credit Facility [Member] | Revolving Credit Agreement [Member] | Minimum [Member] | London Interbank Offered Rate L I B O R [Member] | ||
Variable interest rate | us-gaap_DebtInstrumentInterestRateEffectivePercentage | 0.875% |
Revolving Credit Facility [Member] | Revolving Credit Agreement [Member] | Maximum [Member] | London Interbank Offered Rate L I B O R [Member] | ||
Variable interest rate | us-gaap_DebtInstrumentInterestRateEffectivePercentage | 1.75% |