Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Jul. 17, 2015 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | WOODWARD, INC. | |
Entity Central Index Key | 108,312 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 63,580,865 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Consolidated Statements of Earnings | ||||
Net sales | $ 494,810 | $ 524,284 | $ 1,475,678 | $ 1,435,793 |
Costs and expenses: | ||||
Cost of goods sold | 351,421 | 372,571 | 1,050,783 | 1,028,065 |
Selling, general and administrative expenses | 39,305 | 40,468 | 117,598 | 113,079 |
Research and development costs | 33,555 | 34,990 | 97,912 | 100,219 |
Amortization of intangible assets | 7,224 | 8,357 | 22,026 | 25,498 |
Interest expense | 6,077 | 5,972 | 17,355 | 18,219 |
Interest income | (219) | (73) | (567) | (189) |
Other (income) expense, net (Note 16) | (112) | (469) | (1,651) | (1,266) |
Total costs and expenses | 437,251 | 461,816 | 1,303,456 | 1,283,625 |
Earnings before income taxes | 57,559 | 62,468 | 172,222 | 152,168 |
Income tax expense | 13,806 | 16,467 | 40,830 | 37,986 |
Net earnings | $ 43,753 | $ 46,001 | $ 131,392 | $ 114,182 |
Earnings per share (Note 3): | ||||
Basic earnings per share | $ 0.68 | $ 0.70 | $ 2.02 | $ 1.71 |
Diluted earnings per share | $ 0.66 | $ 0.69 | $ 1.98 | $ 1.68 |
Weighted Average Common Shares Outstanding (Note 3): | ||||
Basic | 64,781 | 65,845 | 65,088 | 66,736 |
Diluted | 66,227 | 67,147 | 66,504 | 68,030 |
Cash dividends per share paid to Woodward common stockholders | $ 0.10 | $ 0.08 | $ 0.28 | $ 0.24 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Comprehensive earnings | ||||
Net earnings | $ 43,753 | $ 46,001 | $ 131,392 | $ 114,182 |
Other comprehensive earnings: | ||||
Foreign currency translation adjustments | 6,990 | (72) | (27,955) | 4,159 |
Taxes on changes on foreign currency translation adjustments | 240 | 74 | 1,500 | 368 |
Foreign currency translation adjustments, net of tax | 7,230 | 2 | (26,455) | 4,527 |
Reclassification of net realized losses on derivatives to earnings | 25 | 24 | 74 | 73 |
Taxes on changes on derivative transactions | (10) | (9) | (28) | (27) |
Derivative adjustments, net of tax | 15 | 15 | 46 | 46 |
Minimum retirement benefit liability adjustments (Note 18): | ||||
Net gain (loss) arising during the period | 0 | 1,193 | 0 | 1,193 |
Curtailment arising during the period | 0 | (915) | 0 | (915) |
Amortization of prior service cost (benefit) | 56 | (22) | 169 | (66) |
Amortization of net loss | 128 | 199 | 385 | 588 |
Foreign currency exchange rate changes on minimum retirement benefit liabilities | (604) | (263) | 454 | (483) |
Taxes on changes on minimum retirement benefit liability adjustments, net of foreign currency exchange rate changes | 141 | 31 | (368) | (14) |
Minimum retirement benefit liability adjustments, net of tax | (279) | 223 | 640 | 303 |
Total comprehensive earnings | $ 50,719 | $ 46,241 | $ 105,623 | $ 119,058 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 87,384 | $ 115,287 |
Accounts receivable, less allowance for uncollectible amounts of $5,127 and $7,078, respectively | 274,902 | 346,858 |
Inventories | 485,903 | 451,944 |
Income taxes receivable | 24,529 | 6,574 |
Deferred income tax assets | 49,653 | 40,774 |
Other current assets | 47,003 | 47,207 |
Total current assets | 969,374 | 1,008,644 |
Property, plant and equipment, net | 688,336 | 513,279 |
Goodwill | 558,439 | 559,724 |
Intangible assets, net | 232,617 | 254,772 |
Deferred income tax assets | 10,306 | 6,292 |
Other assets | 52,664 | 54,491 |
Total assets | 2,511,736 | 2,397,202 |
Current liabilities: | ||
Short-term borrowings | 3,186 | 0 |
Accounts payable | 188,280 | 160,683 |
Income taxes payable | 8,483 | 6,130 |
Deferred income tax liabilities | 428 | 472 |
Accrued liabilities | 114,320 | 172,731 |
Total current liabilities | 314,697 | 340,016 |
Long-term debt, less current portion | 875,000 | 710,000 |
Deferred income tax liabilities | 99,227 | 85,031 |
Other liabilities | 95,541 | 101,211 |
Total liabilities | $ 1,384,465 | $ 1,236,258 |
Commitments and contingencies (Note 20) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.003 per share, 10,000 shares authorized, no shares issued | $ 0 | $ 0 |
Common stock, par value $0.001455 per share, 150,000 shares authorized, 72,960 shares issued | 106 | 106 |
Additional paid-in capital | 127,737 | 112,491 |
Accumulated other comprehensive earnings (losses) | (29,302) | (3,533) |
Deferred compensation | 4,314 | 3,915 |
Retained earnings | 1,451,575 | 1,338,468 |
Stockholders' equity excluding treasury stock | 1,554,430 | 1,451,447 |
Treasury stock at cost, 9,380 shares and 7,397 shares, respectively | (422,845) | (286,588) |
Treasury stock held for deferred compensation, at cost, 173 shares and 198 shares, respectively | (4,314) | (3,915) |
Total stockholders' equity | 1,127,271 | 1,160,944 |
Total liabilities and stockholders' equity | $ 2,511,736 | $ 2,397,202 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Allowance, accounts receivable | $ 5,127 | $ 7,078 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.003 | $ 0.003 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001455 | $ 0.001455 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 72,960,000 | 72,960,000 |
Treasury stock, shares | 9,380,000 | 7,397,000 |
Treasury stock held for deferred compensation, shares | 173,000 | 198,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net earnings | $ 131,392 | $ 114,182 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 55,754 | 57,680 |
Net (gain) loss on sales of assets | (766) | 116 |
Stock-based compensation | 11,086 | 8,739 |
Excess tax benefits from stock-based compensation | (4,170) | (2,638) |
Deferred income taxes | 1,623 | (5,749) |
Loss on derivatives reclassified from accumulated comprehensive earnings into earnings | 74 | 73 |
Changes in operating assets and liabilities, net of business acquisitions: | ||
Accounts receivable | 65,345 | 57,151 |
Inventories | (44,630) | (38,860) |
Accounts payable and accrued liabilities | (41,868) | (6,434) |
Current income taxes | (10,897) | 16,130 |
Retirement benefit obligations | (3,365) | (2,676) |
Other | 7,742 | (13,824) |
Net cash provided by operating activities | 167,320 | 183,890 |
Cash flows from investing activities: | ||
Payments for purchase of property, plant and equipment | (190,865) | (104,530) |
Proceeds from sale of assets | 2,486 | 258 |
Net cash used in investing activities | (188,379) | (104,272) |
Cash flows from financing activities: | ||
Cash dividends paid | (18,285) | (16,021) |
Proceeds from sales of treasury stock | 7,936 | 8,380 |
Payments for repurchases of common stock | (157,118) | (141,488) |
Excess tax benefits from stock compensation | 4,170 | 2,638 |
Borrowings on revolving lines of credit and short-term borrowings | 869,970 | 356,071 |
Payments on revolving lines of credit and short-term borrowings | (701,610) | (191,069) |
Proceeds from issuance of long-term debt | 0 | 250,000 |
Payments of long-term debt | 0 | (300,000) |
Payments of debt financing costs | (2,359) | (1,297) |
Net cash provided by (used in) financing activities | 2,704 | (32,786) |
Effect of exchange rate changes on cash and cash equivalents | (9,548) | 454 |
Net change in cash and cash equivalents | (27,903) | 47,286 |
Cash and cash equivalents at beginning of period | 115,287 | 48,556 |
Cash and cash equivalents at end of period | $ 87,384 | $ 95,842 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ 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 in Equity [Member] | Retained Earnings [Member] | Treasury Stock at Cost [Member] | Treasury Stock Held for Deferred Compensaton [Member] | Total |
Balances at Sep. 30, 2013 | $ 106 | $ 101,147 | $ 15,115 | $ 25,742 | $ 43 | $ (10,670) | $ 4,007 | $ 1,193,887 | $ (167,710) | $ (4,007) | $ 1,142,545 |
Balance, Common Stock, shares at Sep. 30, 2013 | 72,960,000 | ||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2013 | (4,883,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2013 | (232,000) | ||||||||||
Net earnings | 114,182 | 114,182 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | 4,876 | 4,527 | 46 | 303 | 4,876 | ||||||
Cash dividends paid | (16,021) | (16,021) | |||||||||
Purchases of treasury stock | $ (143,073) | (143,073) | |||||||||
Purchases of treasury stock, shares | (3,309,000) | ||||||||||
Sales of treasury stock | (4,949) | $ 14,042 | 9,093 | ||||||||
Sales of treasury stock, shares | 455,000 | ||||||||||
Common shares issued from treasury stock for benefit plans | 2,837 | $ 8,356 | 11,193 | ||||||||
Common shares issued from treasury stock for benefit plans, shares | 260,000 | ||||||||||
Tax benefit attributable to exercise of stock options | 2,463 | 2,463 | |||||||||
Stock-based compensation | 8,739 | 8,739 | |||||||||
Purchases of stock by deferred compensation plan | 324 | $ (324) | |||||||||
Purchases of stock by deferred compensation plan, shares | (7,000) | ||||||||||
Distribution of stock from deferred compensation plan | (453) | $ 453 | |||||||||
Distribution of stock from deferred compensation plan, shares | 41,000 | ||||||||||
Balances at Jun. 30, 2014 | $ 106 | 110,237 | 19,991 | 30,269 | 89 | (10,367) | 3,878 | 1,292,048 | $ (288,385) | $ (3,878) | 1,133,997 |
Balance, Common Stock, shares at Jun. 30, 2014 | 72,960,000 | ||||||||||
Balance, Treasury Stock, shares at Jun. 30, 2014 | (7,477,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Jun. 30, 2014 | (198,000) | ||||||||||
Balances at Sep. 30, 2014 | $ 106 | 112,491 | (3,533) | 10,819 | 105 | (14,457) | 3,915 | 1,338,468 | $ (286,588) | $ (3,915) | $ 1,160,944 |
Balance, Preferred Stock, shares at Sep. 30, 2014 | 0 | ||||||||||
Balance, Common Stock, shares at Sep. 30, 2014 | 72,960,000 | 72,960,000 | |||||||||
Balance, Treasury Stock, shares at Sep. 30, 2014 | (7,397,000) | (7,397,000) | |||||||||
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2014 | (198,000) | (198,000) | |||||||||
Net earnings | 131,392 | $ 131,392 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | (25,769) | (26,455) | 46 | 640 | (25,769) | ||||||
Cash dividends paid | (18,285) | (18,285) | |||||||||
Purchases of treasury stock | $ (157,118) | (157,118) | |||||||||
Purchases of treasury stock, shares | (2,670,000) | ||||||||||
Sales of treasury stock | (4,841) | $ 12,777 | 7,936 | ||||||||
Sales of treasury stock, shares | 428,000 | ||||||||||
Common shares issued from treasury stock for benefit plans | 4,490 | $ 8,084 | 12,574 | ||||||||
Common shares issued from treasury stock for benefit plans, shares | 259,000 | ||||||||||
Tax benefit attributable to exercise of stock options | 4,511 | 4,511 | |||||||||
Stock-based compensation | 11,086 | 11,086 | |||||||||
Purchases of stock by deferred compensation plan | 876 | $ (876) | |||||||||
Purchases of stock by deferred compensation plan, shares | (18,000) | ||||||||||
Distribution of stock from deferred compensation plan | (477) | $ 477 | |||||||||
Distribution of stock from deferred compensation plan, shares | 43,000 | ||||||||||
Balances at Jun. 30, 2015 | $ 106 | $ 127,737 | $ (29,302) | $ (15,636) | $ 151 | $ (13,817) | $ 4,314 | $ 1,451,575 | $ (422,845) | $ (4,314) | $ 1,127,271 |
Balance, Preferred Stock, shares at Jun. 30, 2015 | 0 | ||||||||||
Balance, Common Stock, shares at Jun. 30, 2015 | 72,960,000 | 72,960,000 | |||||||||
Balance, Treasury Stock, shares at Jun. 30, 2015 | (9,380,000) | (9,380,000) | |||||||||
Balance, Treasury stock held for deferred compensation, Shares at Jun. 30, 2015 | (173,000) | (173,000) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation | |
Basis of Presentation | WOODWARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In thousands, except per share amounts) (Unaudited) Note 1. Basis of Presentation The Condensed Consolidated Financial Statements of Woodward, Inc. (“Woodward” or the “Company”) as of June 30, 2015 and for the three and nine-months ended June 30, 2015 and June 30, 2014, 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 June 30, 2015, and the statements of earnings, comprehensive earnings, cash flows, and changes in stockholders’ equity for the periods presented herein. The Condensed Consolidated Balance Sheet as of September 30, 2014 was derived from Woodward’s Annual Report on Form 10-K for the fiscal year then ended. The results of operations for the three and nine-months ended June 30, 2015 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, customer rebates earned, warranty reserves, useful lives of property and identifiable intangible assets, the evaluation of impairments of property, valuation of identifiable intangible assets and goodwill, the provision for income tax and related valuation reserves, the valuation of assets and liabilities acquired in business combinations, assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans, the valuation of stock compensation instruments granted to employees and board members, and contingencies. Actual results could vary materially from Woodward’s estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jun. 30, 2015 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 2. Recent accounting pronouncements From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”). In April 2015, the FASB issued ASU 2015-03, “Simplifying the Present ation of Debt Issuance Costs.” Under ASU 2015-03 Woodward will present debt issuance costs in the balance sheet as a reduction from the related debt liability rather than as an asset. Amortization of such costs will continue to be reported as interest expense. ASU 2015-03 is effective for fiscal years − and interim per iods within those fiscal years − beginning after December 15, 2015 (fiscal year 2017 for Woodward), but early adoption is allowed. Woodward has not determined in which period it will adopt the new guidance. Retrospective adoption is required. Woodward had unamortized debt issuance costs of $ 5,834 as of June 30 , 2015 and $4,276 as of September 30 2014 . These costs will be reclassified from other assets to long-term debt upon adoption. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The purpose of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The amendments (i) remove inconsistencies and weaknesses in revenue requirements, (ii) provide a more robust framework for addressing revenue issues, (iii) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (iv) provide more useful information to users of financial statements through improved disclosure requirements, and (v) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. In July 2015, the FASB delayed the effective date for the adoption of ASU 2014-09 by one year, and as a result, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 (fiscal year 2019 for Woodward), including interim periods within the reporting period. Early adoption is not permitted. An entity should adopt the amendments using one of the following methods: retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. Woodward has not determined what transition method it will use and is currently assessing the impact that this guidance may have on its Consolidated Financial Statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share | |
Earnings Per Share | Note 3. Earnings per share Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options and restricted stock. The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share: Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net earnings $ $ $ $ Denominator: Basic shares outstanding Dilutive effect of stock options and restricted stock Diluted shares outstanding Income per common share: Basic earnings per share $ $ $ $ Diluted earnings per share $ $ $ $ On June 2, 2015 , Woodward entered into an accelerated share repurchase agreement (the “ ASR Agreement ”) with Goldman, Sachs & Co. (“Goldman”) under which Woodward repurchase d shares of its common stock for an aggregate purchase price of $125,000 . Upon execution of the ASR Agreement, Goldman initially delivered to Woodward 2,048 shares of common stock . The number of shares of common stock to be ultimately repurchased by Woodward under the ASR program , which is expected to be completed before December 31, 2015 , will be based generally on the average daily volume-weighted average price of Woodward stock during the term of the ASR Agreement . The 2 , 048 shares of common stock delivered by Goldman to Woodward upon execution of the ASR Agreement are reflected in the calculation of basic shares outstanding used in the calculation of earnings per share. The following stock option grants were outstanding during the three and nine-months ended June 30, 2015 and 201 4 , but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive: Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Options - Weighted-average option price $ n/a $ $ $ 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 Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Weighted-average treasury stock shares held for deferred compensation obligations |
Joint Venture
Joint Venture | 9 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture | Note 4. Joint venture On May 20, 2015 , Woodward and General Electric Company (“GE”) , acting through its GE Aviation business unit , entered into a binding agreement to form a strategic joint venture between Woodward and GE (the “JV”). The JV will design, develop, source, supply and service the fuel system (including components from the fu el inlet up to the fuel nozzle) for specified existing and all future GE commercial aircraft engines that produce thrust in excess of 50,000 pounds. Upon formation of the JV, Woodward will assign certain contractual rights to the JV in exchange for a payment from GE of $250,000 (subject to certain normal and customary adjustments). In addition, GE will pay Woodward fifteen annual payments of approximately $4,900 each per year. Because the contractual rights have no cost basis in Woodward’s financial records, Woodward expects to account for the fair value of the proceeds received as a deferred gain that will be recognized over the economic lives of the assigned contractual rights. Closing is subject to obtaining regulatory approvals in various global jurisdictions. Woodward will own 50% of the JV, which will be jointly managed by Woodward and GE , and any significant decisions and/or actions of the JV will require mutual consent of both Woodward and GE. Woodward expects to account for the JV using the equity method, as neither Woodward nor GE will exercise operating control over the JV. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Jun. 30, 2015 | |
Financial Instruments and Fair Value Measurments | |
Financial Instruments and Fair Value Measurements | Note 5 . Financial instruments and fair value measurements Financial assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are categorized based upon a fair value hierarchy established by U.S. GAAP, which prioritizes the inputs used to measure fair value into the following levels: Level 1: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. Level 2: Quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data. Level 3: Inputs reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. The table below presents information about Woodward’s financial assets that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value. Woodward had no financial liabilities required to be measured at fair value on a recurring basis as of June 30 , 201 5 or September 30, 201 4 . At June 30, 2015 At September 30, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Cash $ $ - $ - $ $ $ - $ - $ Investments in money market funds - - - - Investments in reverse repurchase agreements - - - - Equity securities - - - - Total financial assets $ $ - $ - $ $ $ - $ - $ Investments in money market funds: Woodward sometimes invests excess cash in money market funds not insured by the Federal Depository Insurance Corporation (“FDIC”). Woodward believes that the investments in money market funds are on deposit with creditworthy financial institutions and that the funds are highly liquid. The investments in money market funds are reported at fair value, with realized gains from interest income realized in earnings and are included in “Cash and cash equivalents.” The fair values of Woodward’s investments in money market funds are based on the quoted market prices for the net asset value of the various money market funds. Investments in reverse repurchase agreements: Woodward sometimes invests excess cash in reverse repurchase agreements. Under the terms of Woodward’s reverse repurchase agreements, Woodward purchases an interest in a pool of securities and is granted a security interest in those securities by the counterparty to the reverse repurchase agreement. At an agreed upon date, generally the next business day, the counterparty repurchases Woodward’s interest in the pool of securities at a price equal to what Woodward paid to the counterparty plus a rate of return determined daily per the terms of the reverse repurchase agreement. Woodward believes that the investments in these reverse repurchase agreements are with creditworthy financial institutions and that the funds invested are highly liquid. The investments in reverse repurchase agreements are reported at fair value, with realized gains from interest income realized in earnings, and are included in “Cash and cash equivalents.” Since the investments are generally overnight, the carrying value is considered to be equal to the fair value as the amount is deemed to be a cash deposit with no risk of change in value as of the end of each fiscal quarter. Equity securities: Woodward holds marketable equity securities, through investments in various mutual funds, related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net.” The trading securities are included in “Other assets.” The fair values of Woodward’s trading securities are based on the quoted market prices for the net asset value of the various mutual funds. Accounts receivable, accounts payable and short-term debt are not remeasured to fair value, as the carrying cost of each approximates its respective fair value. The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Condensed Consolidated Balance Sheets were as follows: At June 30, 2015 At September 30, 2014 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 Liabilities: Long-term debt, including current portion 2 In fiscal years 2014 and 2013, Woodward received long-term notes from a municipality within the state of Illinois in connection with certain economic incentives related to Woodward’s development of a second campus in the greater-Rockford, Illinois area for its Aerospace segment. The fair value of the long-term notes was estimated based on a model that discounted future principal and interest payments received at an interest rate available to the Company at the end of the period for similarly rated municipal notes of similar maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the long-term notes were 3.3 % at June 30 , 201 5 and 3.2% at September 30, 201 4 . In fiscal year 2013, Woodward received a long-term note from a municipality within the state of Colorado in connection with certain economic incentives related to Woodward’s development of a new campus at its corporate headquarters in Fort Collins, Colorado. The fair value of the long-term note was estimated based on a model that discounted future principal and interest payments received at an interest rate available to the Company at the end of the period for similarly rated municipal notes of similar maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the long-term note were 3.3% at June 30 , 201 5 and 3.2% at September 30, 2014. The fair value of long-term debt was estimated based on a model that discounted future principal and interest payments at interest rates available to the Company at the end of the period for similar debt of the same maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The weighted-average interest rates used to estimate the fair value of long-term debt were 2.6 % at June 30 , 201 5 and 2.4 % at September 30, 201 4 . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 6 . Derivative instruments and hedging activities Woodward is exposed to global market risks, including the effect of changes in interest rates, foreign currency exchange rates, changes in certain commodity prices and fluctuations in various producer indices. From time to time, Woodward enters into derivative instruments for risk management purposes only, including derivatives designated as accounting hedges and/or those utilized as economic hedges. Woodward uses interest rate related derivative instruments to manage its exposure to fluctuations of interest rates. Woodward does not enter into or issue derivatives for trading or speculative purposes. By using derivative and/or hedging instruments to manage its risk exposure, Woodward is subject, from time to time, to credit risk and market risk on those derivative instruments. Credit risk arises from the potential failure of the counterparty to perform under the terms of the derivative and/or hedging instrument. When the fair value of a derivative contract is positive, the counterparty owes Woodward, which creates credit risk for Woodward. Woodward mitigates this credit risk by entering into transactions with only creditworthy counterparties. Market risk arises from the potential adverse effects on the value of derivative and/or hedging instruments that result from a change in interest rates, commodity prices, or foreign currency exchange rates. Woodward minimizes this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. In June 2015, Woodward designated an intercompany loan of 160,000 RMB between two wholly owned subsidiaries as a hedge of a foreign currency exposure of the net investment of the borrower in the lender. A foreign exchange gain on the loan of $ 11 , net of taxes, is included in foreign currency translation adjustments within total comprehensive earnings for the three and nine- months ended June 30, 2015. Woodward did not enter into any derivatives or hedging transactions during the three or nine-months ended June 30 , 2014. The remaining unrecognized gains and losses in Woodward’s Condensed Consolidated Balance Sheets associated with derivative instruments that were previously entered into by Woodward, which are classified in accumulated other comprehensive losses (“accumulated OCI”), were net gains of $244 as of June 30 , 2015 and $ 170 as of September 30, 2014. The following table discloses the impact of derivative instruments in cash flow hedging relationships on Woodward’s Condensed Consolidated Statements of Earnings, recognized in interest expense: Three-Months Ended June 30, Nine-Months Ended June 30, 2015 2014 2015 2014 Amount of (income) expense recognized in earnings on derivative $ $ $ $ Amount of (gain) loss recognized in accumulated OCI on derivative - - - - Amount of (gain) loss reclassified from accumulated OCI into earnings Based on the carrying value of the realized but unrecognized gains and losses on terminated derivative instruments designated as cash flow hedges as of June 30 , 2015, Woodward expects to reclassify $ 64 of net unrecognized losses on terminated derivative instruments from accumulated other comprehensive earnings to earnings during the next twelve months. |
Supplemental Statements of Cash
Supplemental Statements of Cash Flows Information | 9 Months Ended |
Jun. 30, 2015 | |
Supplemental Statements of Cash Flows Information | |
Supplemental Statements of Cash Flows Information | Note 7 . Supplemental statement of cash flows information Nine-Months Ended June 30, 2015 2014 Interest paid, net of amounts capitalized $ $ Income taxes paid Income tax refunds received Non-cash activities: Purchases of property, plant and equipment on account Common shares issued from treasury for benefit plans (Note 18) Notes receivable from municipalities for economic development incentives - Cashless exercise of stock options - Settlement of receivable through cashless acquisition of treasury shares in connection with the cashless exercise of stock options - |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Jun. 30, 2015 | |
Accounts Receivable Disclosure | |
Accounts Receivable | Note 8 . Accounts receivable Almost all of Woodward’s sales are made on credit and result in accounts receivable, which are recorded at the amount invoiced. In the normal course of business, not all accounts receivable are collected and, therefore, an allowance for losses of accounts receivable is provided equal to the amount that Woodward believes ultimately will not be collected. In establishing the amount of the allowance, customer-specific information is considered related to delinquent accounts, past loss experience, bankruptcy filings, deterioration in the customer’s operating results or financial position, and current economic conditions. Accounts receivable losses are deducted from the allowance, and the related accounts receivable balances are written off when the receivables are deemed uncollectible. Recoveries of accounts receivable previously written off are recognized when received. Consistent with business practice common in China, Woodward’s Chinese subsidiary accepts from Chinese customers, in settlement of certain customer accounts receivable, bankers’ acceptance notes issued by creditworthy Chinese banks. Bankers’ acceptance notes are financial instruments issued by Chinese financial institutions as part of financing arrangements between the financial institution and a customer of the financial institution. Bankers’ acceptance notes represent a commitment by the issuing financial institution to pay a certain amount of money at a specified future maturity date to the legal owner of the bankers’ acceptance note as of the maturity date. The maturity date of bankers’ acceptance notes varies, but it is Woodward’s policy to only accept bankers’ acceptance notes with maturity dates no more than 180 days from the date of Woodward’s receipt of such draft. The issuing financial institution is the obligor, not Woodward’s customers. Upon Woodward’s acceptance of a bankers’ acceptance note from a customer, such customer has no further obligation to pay Woodward for the related accounts receivable balance. Woodward only accepts bankers’ acceptance notes issued by creditworthy banks as to which the credit risk associated with the bankers acceptance note is assessed to be minimal. The composition of Woodward’s accounts receivable at June 30 , 2015 and September 30, 2014 follows: June 30, September 30, 2015 2014 Accounts receivable from: Customers $ $ Other (Chinese financial institutions) Allowance for uncollectible customer amounts $ $ |
Inventories
Inventories | 9 Months Ended |
Jun. 30, 2015 | |
Inventories | |
Inventories | Note 9 . Inventories June 30, September 30, 2015 2014 Raw materials $ $ Work in progress Component parts (1) Finished goods $ $ (1) Component parts include items that can be sold separately as finished goods or included in the manufacture of other products. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 9 Months Ended |
Jun. 30, 2015 | |
Property, Plant, and Equipment, Net | |
Property, Plant and Equipment, Net | Note 10 . Property, plant, and equipment June 30, September 30, 2015 2014 Land and land improvements $ $ Buildings and improvements Leasehold improvements Machinery and production equipment Computer equipment and software Office furniture and equipment Other Construction in progress Less accumulated depreciation Property, plant and equipment, net $ $ Included in “Land and land improvements” and “Buildings and improvements” are assets held for sale of $692 at June 30 , 2015 and $2,465 at September 30, 2014. During the quarter ended March 31, 2015, Woodward completed the sale of certain of the assets held for sale. Woodward is developing a second campus in the greater-Rockford, Illinois area for its Aerospace segment in order to address the growth expected over the next ten years and beyond and to support a substantial number of recently awarded new system platforms, particularly on narrow-body aircraft. Included in “Construction in progress” are costs of $27,633 at June 30 , 2015 and $85,283 at September 30, 2014, associated with the construction of the second campus and new equipment purchases, including capitalized interest of $430 at June 30, 2015 and $2,963 at September 30, 2014. Approximately $120,000 of assets were placed in service during the nine -months ended June 30 , 2015, and were recorded to “Buildings and improvements.” Woodward is also developing a new campus at its corporate headquarters in Fort Collins, Colorado to support the continued growth of its Energy segment by supplementing its existing Colorado manufacturing facilities and corporate headquarters. Included in “Construction in progress” are costs of $117,882 at June 30 , 2015 and $37,268 at September 30, 2014, associated with the construction of the new campus, including capitalized interest of $3,996 at June 30 , 2015 and $2,392 at September 30, 2014. In addition, in September 2013, Woodward invested in a building site in Niles, Illinois. Woodward has completed a new facility on this site for its Aerospace segment and is relocating most of its operations formerly residing in nearby Skokie, Illinois to this new facility. Included in “Construction in progress” are costs of $4,960 at June 30 , 2015 and $55,629 at September 30, 2014 , associated with the construction of the building in Niles and new equipment purchases . Approximately $ 72,00 0 of assets were placed in service during the nine -months ended June 30 , 2015, and were recorded to “Buildings and improvements” and “Office furniture and equipment.” For the three and nine -months ended June 30 , 2015 and June 30 , 2014, Woodward had depreciation expense of the following: Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Depreciation expense $ $ $ $ For the three and nine -months ended June 30 , 2015 and June 30 , 2014, Woodward capitalized interest that would have otherwise been included in interest expense of the following: Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Capitalized interest $ $ $ $ |
Goodwill
Goodwill | 9 Months Ended |
Jun. 30, 2015 | |
Goodwill Disclosure | |
Goodwill | Note 11 . Goodwill September 30, 2014 Effects of Foreign Currency Translation June 30, 2015 Aerospace $ $ - $ Energy Consolidated $ $ $ Woodward tests goodwill for impairment at the reporting unit level on an annual basis and more often if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Based on the relevant U.S. GAAP authoritative guidance, Woodward aggregates components of a single operating segment into a reporting unit, if appropriate. The impairment tests consist of comparing the implied fair value of each reporting unit with its carrying amount including goodwill. If the carrying amount of the reporting unit exceeds its implied fair value, Woodward compares the implied fair value of goodwill with the recorded carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value of goodwill, an impairment loss would be recognized to reduce the carrying amount to its implied fair value. Woodward completed its annual goodwill impairment test as of July 31, 2014 during the quarter ended September 30, 2014. At that date, Woodward determined it was appropriate to aggregate certain components of the same operating segment into a single aggregated reporting unit. The fair value of each of Woodward’s reporting units was determined using a discounted cash flow method. This method represents a Level 3 input and incorporates various estimates and assumptions, the most significant being projected revenue growth rates, earnings margins, future tax rates, and the present value, based on an estimated weighted-average cost of capital (or the discount rate) and terminal growth rate, of forecasted cash flows. Management projects revenue growth rates, earnings margins and cash flows based on each reporting unit’s current operational results, expected performance and operational strategies over a five or ten-year period. These projections are adjusted to reflect current economic conditions and demand for certain products, and require considerable management judgment. Forecasted cash flows used in the July 31, 2014 impairment test were discounted using weighted-average cost of capital assumptions ranging from 8.93% to 11.04% . The terminal values of the forecasted cash flows were calculated using the Gordon Growth Model and assumed an annual compound growth rate after five or ten years of 4.20% . These inputs , which are unobservable in the market, represent management’s best estimate of what market participants would use in determining the present value of the Company’s forecasted cash flows. Changes in these estimates and assumptions can have a significant impact on the fair value of forecasted cash flows. Woodward evaluated the reasonableness of the reporting units’ resulting fair values utilizing a market multiple method. The results of Woodward’s goodwill impairment tests performed as of July 31, 2014 indicated the estimated fair value of each reporting unit was substantially in excess of its carrying value, and accordingly, no impairment existed. During the three and nine-months ended June 30, 2015 there were no events or changes in operation that triggered a need to assess goodwill for possible impairment. As part of the Company’s ongoing efforts to assess goodwill for possible indications of impairment, Woodward continues to consider a wide variety of factors, including but not limited to the global economic environment and its potential impact on Woodward’s business. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Jun. 30, 2015 | |
Intangible Assets, Net | |
Intangible Assets, Net | Note 12 . Intangible assets, net June 30, 2015 September 30, 2014 Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Customer relationships and contracts: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Intellectual property: Aerospace $ - $ - $ - $ - $ - $ - Energy Total $ $ $ $ $ $ Process technology: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Other intangibles: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Total intangibles: Aerospace $ $ $ $ $ $ Energy Consolidated Total $ $ $ $ $ $ For the three and nine-months ended June 30, 2015 and June 30, 2014, Woodward recorded amortization expense associated with intangibles of the following : Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Amortization expense $ $ $ $ Future amortization expense associated with intangibles is expected to be: Year Ending September 30: 2015 (remaining) $ 2016 2017 2018 2019 Thereafter $ |
Credit Facilities, Short-term B
Credit Facilities, Short-term Borrowings and Long-term Debt | 9 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure | |
Credit Facilities, Short-term Borrowings and Long-term Debt | Note 1 3 . Credit facilities, short-term borrowings and long-term debt Short-term borrowings A Chinese subsidiary of Woodward has a local credit facility with the Hong Kong and Shanghai Banking Company under which it has the ability to borrow up to either $22,700 , or the local currency equivalent of $22,700. Any cash borrowings under the local Chinese credit facility are secured by a parent guarantee from Woodward. The Chinese subsidiary may utilize the local facility for cash borrowings to support its operating cash needs. Local currency borrowings on the Chinese credit facility are charged interest at the prevailing interest rate offered by the People’s Bank of China on the date of borrowing, plus a margin equal to 25% of that prevailing rate . U.S. dollar borrowings on the credit facility are charged interest at the lender’s cost of borrowing rate at the date of borrowing, plus 3% . The Chinese subsidiary had no outstanding cash borrowings against the local credit facility at June 30 , 2015 and September 30, 2014. In the second quarter of fiscal year 2015, a Brazilian subsidiary of Woodward arranged a local uncommitted credit facility with the Banco J.P. Morgan S.A. under which it has the ability to borrow up to 26,000 Brazilian Real. Any cash borrowings under the local Brazilian credit facility will be secured by a parent guarantee from Woodward. The Brazilian subsidiary may utilize the local facility to support its operating cash needs. Local currency borrowings on the Brazilian credit facility are charged interest at the lender’s cost of borrowing rate at the date of borrowing, plus 1.75% . The Brazilian subsidiary had $3,186 outstanding cash borrowings against the local credit facility at June 30 , 2015. Woodward also has other foreign lines of credit and foreign overdraft facilities at various financial institutions, which are generally reviewed annually for renewal and are subject to the usual terms and conditions applied by the financial institutions. Pursuant to the terms of the related facility agreements, Woodward’s foreign performance guarantee facilities are limited in use to providing performance guarantees to third parties. There were no borro wings outstanding as of June 30 , 2015 and September 30, 2014 on Woodward’s other foreign lines of credit and foreign overdraft facilities. Long -term debt June 30, September 30, 2015 2014 Revolving credit facility - Floating rate ( LIBOR plus 0.85% - 1.65% ), due April 2020 , unsecured Series C notes – 5.92%, due October 2015; unsecured Series D notes – 6.39%, due October 2018; unsecured Series E notes – 7.81%, due April 2016; unsecured Series F notes – 8.24%, due April 2019; unsecured Series G notes – 3.42%, due November 2020; unsecured Series H notes – 4.03%, due November 2023; unsecured Series I notes – 4.18%, due November 2025; unsecured Series J notes – Floating rate ( LIBOR plus 1.25% ), due November 2020; unsecured Series K notes – 4.03%, due November 2023; unsecured Series L notes – 4.18%, due November 2025; unsecured Total long-term debt $ $ Revolving credit facility Woodward maintains a revolving credit facility established under a revolving credit agreement between Woodward and a syndicate of lenders led by Wells Fargo Bank, National Association, as administrative agent (the “Revolving Credit Agreement”). On April 28, 2015 , Woodward amended the Revolving Credit Agreement to increase its borrowing capacity from $600,000 to $1,000,000 (the “Amended Revolving Credit Agreement”). The terms and conditions of the Amended Revolving Credit Agreement are similar to the prior credit agreement. The Amended Revolving Credit Agreement matures in April 2020 . The Amended Revolving Credit Agreement provides for the option to increase available borrowings to up to $1,200,000 , su bject to lenders’ participation . Borrowings under the Amended Revolving Credit Agreement generally bear interest at LIBOR plus 0.85% to 1.65% . Under the Amended Revolving Credit Agreement, there were $375,000 in principal amount of borrowings outstanding as of June 30 , 2015, at an effective interest rate of 1.24% . Under the prior Revolving Credit Agreement, there were $210,000 in principal amount of borrowings outstanding as of September 30, 2014, at an effective interest rate of 1.21% . As of June 30 , 2015 and September 30, 2014, the entire outstanding balance on both the Amended Revolving Credit Agreement and the prior Revolving Credit Agreement was classified as long-term debt. The Amended Revolving Credit Agreement contains certain covenants customary with such agreements, which are generally consistent with the covenants applicable to Woodward’s long-term debt agreements, and contains customary events of default, including certain cross default provisions related to Woodward’s other outstanding debt arrangements in excess of $60,000 , the occurrence of which would permit the lenders to accelerate the amounts due thereunder. In addition, the Amended Revolving Credit Agreement includes the following financial covenants: (i) a maximum permitted leverage ratio of consolidated net debt to consolidated earnings before interest, taxes, depreciation, stock-based compensation, and amortization, plus any usual non-cash charges to the extent deducted in computing net income minus any usual non-cash gains to the extent added in computing net income (“Leverage Ratio”) for Woodward and its consolidated subsidiaries of 3.5 to 1.0 , which ratio, subject to certain restrictions, may increase to 4.0 to 1.0 for the fiscal quarter (and the immediately following fiscal quarter) during which a permitted acquisition occurs and to 3.75 to 1.0 for the following two succeeding fiscal quarters, and (ii) a minimum consolidated net worth of $800,000 plus (a) 50% of Woodward’s positive net income for the prior fiscal year and (b) 50% of Woodward’s net cash proceeds resulting from certain issuances of stock, subject to certain adjustments. Woodward’s obligations under the Amended Revolving Credit Agreement are guaranteed by Woodward FST, Inc., Woodward MPC, Inc., and Woodward HRT, Inc., each of which is a wholly owned subsidiary of Woodward. In connection with the Amended Revolving Credit Agreement, Woodward incurred $2,359 in financial costs, which are deferred and are being amortized using the straight-line method over the life of the agreement. As of April 28, 2015, Woodward also had $2,014 remaining of deferred financing costs incurred in connection with the Revolving Credit Agreement, which have been combined with the financing costs associated with the Amended Revolving Credit Agreement and are being amortized using the straight-line method over the lift of the Amended Revolving Credit Agreement. The Notes In October 2008 , Woodward entered into a note purchase agreement (the “2008 Note Purchase Agreement”) relating to the Series B, C, and D Notes (the “2008 Notes”). In April 2009 , Woodward entered into a note purchase agreement (the “2009 Note Purchase Agreement”) relating to the Series E and F Notes (the “2009 Notes”). On October 1, 2013 , Woodward entered into a note purchase agreement (the “2013 Note Purchase Agreement” and, together with the 2008 Note Purchase Agreement and the 2009 Note Purchase Agreement, the “Note Purchase Agreements”) relating to the sale by Woodward of an aggregate principal amount of $250,000 of its senior unsecured notes in a series of private placement transactions. Woodward issued the Series G, H and I Notes (the “First Closing Notes”) on October 1, 2013 . Woodward issued the Series J, K and L Notes (the “Second Closing Notes” and, together with the 2008 Notes, 2009 Notes and First Closing Notes, the “Notes”) on November 15, 2013. Interest on the 2008 Notes, the First Closing Notes, and the Series K and L Notes is payable semi-annually on April 1 and October 1 of each year until all principal is paid. Interest on the 2009 Notes is payable semi-annually on April 15 and October 15 of each year until all principal is paid. Interest on the Series J Notes is payable quarterly on January 1, April 1, July 1 and October 1 of each year until all principal is paid. As of June 30 , 2015, the Series J Notes bore interest at an effective rate of 1.53% . Principal payment of the Series C Notes is due on October 1, 2015. This payment is classified as long-term based on Woodward’s intent and ability to refinance this debt for a longer term either through the issuance of new long-term debt or payment of the principal amount with its existing revolving line of credit, which does not mature until July 20 20 . In connection with the 2013 Note Purchase Agreement, in fiscal year 2014, Woodward incurred $1,297 in financing costs, which are deferred and will be amortized using the straight-line method over the life of the agreement. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities | |
Accrued Liabilities | N ote 1 4 . Accrued liabilities June 30, September 30, 2015 2014 Salaries and other member benefits $ $ Warranties Interest payable Current portion of acquired performance obligations and unfavorable contracts (1) Accrued retirement benefits Deferred revenues Taxes, other than income Other $ $ (1) In connection with Woodward’s acquisition of GE Aviation Systems LLC’s (the “Seller”) thrust reverse actuation systems business located in Duarte, California (the “Duarte Business”) in fiscal year 2013, Woodward assumed current and long-term performance obligations for contractual commitments that are expected to result in future economic losses. In addition, Woodward assumed current and long-term performance obligations for services to be provided to the Seller, offset by current and long-term assets related to contractual payments due from the Seller. The current portion of both obligations is included in Accrued liabilities. Warranties Provisions of Woodward’s sales agreements include product warranties customary to these types of agreements. Accruals are established for specifically identified warranty issues that are probable to result in future costs. Warranty costs are accrued on a non-specific basis whenever past experience indicates a normal and predictable pattern exists. Changes in accrued product warranties were as follows: Nine-Months Ended June 30, 2015 2014 Warranties, beginning of period $ $ Expense Reductions for settling warranties Foreign currency exchange rate changes Warranties, end of period $ $ |
Other Liabilities
Other Liabilities | 9 Months Ended |
Jun. 30, 2015 | |
Other Liabilities | |
Other Liabilities | Note 1 5 . Other liabilities June 30, September 30, 2015 2014 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ $ Total unrecognized tax benefits, net of offsetting adjustments Acquired performance obligations and unfavorable contracts (1) Deferred economic incentives (2) Other $ $ (1) In connection with Woodward’s acquisition of the Duarte Business in fiscal year 2013, Woodward assumed current and long-term performance obligations for contractual commitments that are expected to result in future economic losses. In addition, Woodward assumed current and long-term performance obligations for services to be provided to the Seller, offset by current and long-term assets related to contractual payments due from the Seller. The long-term portion of both obligations is included in “Other liabilities ” as of September 30, 2014 . As of June 30, 2015, “Other liabilities” includes the long-term portion of the acquired unfavorable contracts as only a current portion of the acquired performance obligations remains. (2) Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and will be recognized as a reduction to non-income tax expense over the economic lives of the related capital expansion projects. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 9 Months Ended |
Jun. 30, 2015 | |
Other (Income) Expense, Net | |
Other (Income) Expense, Net | Note 1 6. Other (income) expense, net Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Net (gain) loss on sales of assets $ $ $ $ Rent income Net gain on investments in deferred compensation program Other $ $ $ $ |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2015 | |
Income Taxes | |
Income Taxes | Note 17 . Income taxes U.S. GAAP requires that the interim period tax provision be determined as follows: · At the end of each quarter, Woodward estimates the tax that will be provided for the current fiscal year stated as a percentage of estimated “ordinary income.” The term ordinary income refers to earnings from continuing operations before income taxes, excluding significant unusual or infrequently occurring items. The estimated annual effective rate is applied to the year-to-date ordinary income at the end of each quarter to compute the estimated year-to-date tax applicable to ordinary income. The tax expense or benefit related to ordinary income in each quarter is the difference between the most recent year-to-date and the prior quarter year-to-date computations. · The tax effects of significant unusual or infrequently occurring items are recognized as discrete items in the interim period in which the events occur. The impact of changes in tax laws or rates on deferred tax amounts, the effects of changes in judgment about beginning of the year valuation allowances, and changes in tax reserves resulting from the finalization of tax audits or reviews are examples of significant unusual or infrequently occurring items that are recognized as discrete items in the interim period in which the event occurs. The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income of Woodward in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, as a global commercial enterprise, Woodward’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, changes in the estimate of the amount of undistributed foreign earnings that Woodward considers indefinitely reinvested, as well as other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. The following table sets forth the tax expense and the effective tax rate for Woodward’s income from operations: Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Earnings before income taxes $ $ $ $ Income tax expense Effective tax rate The decrease in the year-over-year effective tax rate for the three-months ended June 30, 2015, is primarily attributable to a favorable net valuation increase in deferred tax assets in the current quarter that was partially offset by smaller net favorable resolutions of foreign tax matters in the current quarter compared to the prior year’s quarter. The decrease in the effective tax rate for the nine-months ended June 30, 2015 included both the quarterly decrease and the retroactive extension of the U.S. research and experimentation tax credit for calendar year 2014, which was enacted in December 2014, and was partially offset by smaller net favorable resolutions of foreign tax matters in the current year compared to the prior year . Gross unrecognized tax benefits were $23,769 as of June 30, 2015 and $22,687 as of September 30, 2014. Included in the balance of unrecognized tax benefits were $14,249 as of June 30, 2015 and $12,807 as of September 30, 2014, of tax benefits that, if recognized, would affect the effective tax rate. At this time, Woodward estimates that it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $3,105 in the next twelve months due to the completion of reviews by tax authorities and the expiration of certain statutes of limitations. Woodward accrues for potential interest and penalties related to unrecognized tax benefits in tax expense. Woodward had accrued gross interest and penalties of $1,468 as of June 30, 2015 and $1,158 as of September 30, 2014. Woodward’s tax returns are subject to audits by U.S., state, and foreign tax authorities, and these audits are at various stages of completion at any given time. Reviews of tax matters by authorities and lapses of the applicable statutes of limitations may result in changes to tax expense. With a few exceptions, Woodward’s fiscal years remaining open to examination in the United States include fiscal years 201 2 and thereafter, and fiscal years remaining open to examination in significant foreign jurisdictions include 2005 and thereafter. |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Jun. 30, 2015 | |
Retirement Benefits - General | |
Retirement Benefits | Note 1 8 . Retirement benefits Woodward provides various benefits to eligible members of the Company, including contributions to various defined contribution plans, pension benefits associated with defined benefit plans, postretirement medical benefits and postretirement life insurance benefits. Eligibility requirements and benefit levels vary depending on employee location. Defined contribution plans Most of the Company’s U.S. employees are eligible to participate in the U.S. defined contribution plan. The U.S. defined contribution plan allows employees to defer part of their annual income for income tax purposes into their personal 401(k) accounts. The Company makes contributions to eligible employee accounts, which are also deferred for employee personal income tax purposes. Certain foreign employees are also eligible to participate in foreign plans. Most of Woodward’s U.S. employees with at least two years of service receive an annual contribution of Woodward stock, equal to 5% of their eligible prior year wages, to their personal Woodward Retirement Savings Plan accounts. In the second quarter of fiscal years 2015 and 2014, Woodward fulfilled its annual Woodward stock contribution obligation using shares held in treasury stock by issuing 259 shares of common stock for a total value of $12,574 in fiscal year 2015, and 260 shares of common stock for a total value of $11,193 in fiscal year 2014. The amount of expense associated with defined contribution plans was as follows: Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Company costs $ $ $ $ Defined benefit plans Woodward has defined benefit plans that provide pension benefits for certain retired employees in the United States, the United Kingdom, and Japan. During the third quarter of fiscal year 2014, Woodward terminated its defined benefit pension plan in Switzerland due to workforce reductions related to the closure of Woodward’s Swiss facility in connection with the realignment of the renewable power business that occurred in the third quarter of fiscal year 2013. Woodward also provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees and their covered 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. U.S. GAAP requires that, for obligations outstanding as of September 30, 2014, 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. Effective June 30, 2015, the Company terminated the defined benefit pension plan for employees at its Duarte, California manufacturing facility. The plan, which was established in fiscal year 2013 in connection with the December 2012 acquisition of the Duarte business, was amended in fiscal year 2014 to cease all future benefit accruals under the plan and was closed to new entrants. Cash payout of benefits will occur after regulatory approval of the plan termination. In exchange for the freeze and termination of the plan, which were agreed upon through negotiations with the applicable employee union, the employees were provided replacement benefits through full participation in the Woodward U.S. defined contribution plan. Woodward does not expect future cash payouts to the beneficiaries of the terminated plan to be significantly different from the approximately $80 liability reflected in Woodward’s statement of financial position as of June 30, 2015. The components of the net periodic retirement pension costs recognized are as follows: Three-Months Ended June 30, United States Other Countries Total 2015 2014 2015 2014 2015 2014 Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets Amortization of: Net actuarial (gain) loss Prior service cost (benefit) - Curtailment (gain) loss - - - - Net periodic retirement pension (benefit) cost $ $ $ $ $ $ Contributions paid $ - $ $ $ $ $ Nine-Months Ended June 30, United States Other Countries Total 2015 2014 2015 2014 2015 2014 Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets Amortization of: Net actuarial (gain) loss Prior service cost (benefit) - Curtailment (gain) loss - - - - Net periodic retirement pension (benefit) cost $ $ $ $ $ $ Contributions paid $ - $ $ $ $ $ The components of the net periodic other postretirement benefit costs recognized are as follows: Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Amortization of: Net actuarial (gain) loss Prior service cost (benefit) Net periodic other postretirement (benefit) cost $ $ $ $ Contributions paid $ $ $ $ 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 2015 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2015 will be as follows: Retirement pension benefits: United States $ United Kingdom Japan - Other postretirement benefits Multiemployer defined benefit plans Woodward operates two multiemployer defined benefit plans for certain employees in the Netherlands and Japan. The company has been notified by the Japanese plan administrator that the plan for employees in Japan is being reorganized. Woodward anticipates that assets of the Japanese plan will be converted into a similar plan and is currently evaluating the potential cost of such conversion. The amounts of contributions associated with the multiemployer plans were as follows: Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Company contributions $ $ $ $ |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2015 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 1 9. Stock-based compensation Stock options Woodward’s 2006 Omnibus Incentive Plan (the “2006 Plan”), which has been approved by Woodward’s stockholders, provides for the grant of up to 7,410 stock options to its employees and directors. Woodward believes that these stock options align the interests of its employees and directors with those of its stockholders. Stock option awards are granted with an exercise price equal to the market price of Woodward’s stock at the date of grant, a ten - year term, and generally a four -year vesting schedule at a rate of 25 % per year. The fair value of options granted was estimated on the date of grant using the Black-Scholes-Merton option-valuation model using the assumptions in the following table. Woodward calculates the expected term, which represents the period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant. Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Expected term (years) n/a n/a - 8.8 - 8.6 Estimated volatility n/a n/a 36.5% 38.5% Estimated dividend yield n/a n/a 0.7% 0.8% Risk-free interest rate n/a n/a - 2.3% - 2.5% The following is a summary of the activity for stock option awards during the three and six-months ended June 30 , 201 5 : Three-Months Ended Nine-Months Ended June 30, 2015 June 30, 2015 Number of options Weighted-Average Exercise Price per Share Number of options Weighted-Average Exercise Price per Share Options, beginning balance $ $ Options granted - n/a Options exercised Options forfeited Options, ending balance Changes in non-vested stock options during the three and nine-months ended June 30 , 201 5 were as follows: Three-Months Ended Nine-Months Ended June 30, 2015 June 30, 2015 Number of options Weighted-Average Exercise Price per Share Number of options Weighted-Average Exercise Price per Share Options, beginning balance $ $ Options granted - n/a Options vested Options forfeited Options, ending balance Information about stock options that have vested, or are expected to vest, and are exercisable at June 30, 2015 was as follows: Number Weighted- Average Exercise Price Weighted- Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 4,784 $ 5.8 $ Options vested and exercisable 3,055 4.3 Options vested and expected to vest 4,682 5.7 Restricted Stock In the first quarter of fiscal year 2014, Woodward granted an award of 24 shares of restricted stock to its Chief Executive Officer and President, Thomas A. Gendron. Subject to Mr. Gendron’s continued employment by the Company, these shares of restricted stock will vest 100% following the end of the Company’s fiscal year 2017 if a specified cumulative earnings per share (“EPS”) target is met or exceeded for fiscal years 2014 through 2017 . If this EPS target is not met, all shares of restricted stock will be forfeited by Mr. Gendron. The shares of restricted stock were awarded to Mr. Gendron pursuant to a form restricted stock agreement approved by Woodward’s Compensation Committee . Woodward recognizes stock compensation expense on a straight-line basis over the requisite service period. A summary of the activity for restricted stock awards in the three and nine-months ended June 30, 2015 follows: Three-Months Ended Nine-Months Ended June 30, 2015 June 30, 2015 Number Fair Value per Share Number Fair Value per Share Beginning balance $ $ Shares granted - n/a - n/a Shares vested - n/a - n/a Shares forfeited - n/a - n/a Ending balance At June 30 , 201 5 , there was approximately $12,201 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, both stock options and restricted stock awards, granted under the 2002 Plan (for which no further grants will be made) and the 2006 Plan. The pre-vesting forfeiture rates for purposes of determining stock-based compensation cost recognized were estimated to be 0% for members of Woodward’s board of directors and 9% for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 1.5 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure | |
Commitments and Contingencies | Note 20 . 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 accrue s for known individual matters where it believe s that it is probable the matter will result in a loss when ultimately resolved using estimates of the most likely amount of loss. Legal costs are expensed as incurred and are classified in “Selling, general and administrative expenses” on the Condensed Consolidated Statements of Earnings. Woodward is partially self-insured in the United States for healthcare and worker’s compensation up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of these claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities. While the outcome of pending claims, legal and regulatory proceedings , and investigations cannot be predicted with certainty, managemen t 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, W oodward may be required to pay termination benefits to such officers. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2015 | |
Segment Information | |
Segment Information | Note 2 1 . Segment information Woodward serves the aerospace market and the energy market through its two reportable segments - Aerospace and Energy. Woodward’s reportable segments are aggregations of Woodward’s operating segments. Woodward uses reportable segment information internally to manage its business, including the assessment of business segment performance and decisions for the allocation of resources between segments. The accounting policies of the reportable segments are the same as those of the Company. Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period. In connection with that assessment, Woodward excludes matters such as charges for restructuring costs, interest income and expense, and certain gains and losses from asset dispositions. A summary of consolidated net sales and earnings by segment follows: Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Segment external net sales: Aerospace $ $ $ $ Energy Total consolidated net sales $ $ $ $ Segment earnings: Aerospace $ $ $ $ Energy Total segment earnings Nonsegment expenses Interest expense, net Consolidated earnings before income taxes $ $ $ $ Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets by segment follows: June 30, 2015 September 30, 2014 Segment assets: Aerospace $ $ Energy Total segment assets Unallocated corporate property, plant and equipment, net Other unallocated assets Consolidated total assets $ $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share | |
Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net earnings $ $ $ $ Denominator: Basic shares outstanding Dilutive effect of stock options and restricted stock Diluted shares outstanding Income per common share: Basic earnings per share $ $ $ $ Diluted earnings per share $ $ $ $ |
Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Options - Weighted-average option price $ n/a $ $ $ |
Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Weighted-average treasury stock shares held for deferred compensation obligations |
Financial Instruments and Fai30
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Financial Instruments and Fair Value Measurments | |
Financial Assets that are Measured at Fair Value on a Recurring Basis | At June 30, 2015 At September 30, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Cash $ $ - $ - $ $ $ - $ - $ Investments in money market funds - - - - Investments in reverse repurchase agreements - - - - Equity securities - - - - Total financial assets $ $ - $ - $ $ $ - $ - $ |
Estimated Fair Values of Financial Instruments | At June 30, 2015 At September 30, 2014 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 Liabilities: Long-term debt, including current portion 2 |
Derivative Instruments and He31
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities | |
Impact of Derivative Instruments on Earnings | Three-Months Ended June 30, Nine-Months Ended June 30, 2015 2014 2015 2014 Amount of (income) expense recognized in earnings on derivative $ $ $ $ Amount of (gain) loss recognized in accumulated OCI on derivative - - - - Amount of (gain) loss reclassified from accumulated OCI into earnings |
Supplemental Statements of Ca32
Supplemental Statements of Cash Flows Information (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Supplemental Statements of Cash Flows Information | |
Schedule of Cash Flow Supplemental Disclosures | Nine-Months Ended June 30, 2015 2014 Interest paid, net of amounts capitalized $ $ Income taxes paid Income tax refunds received Non-cash activities: Purchases of property, plant and equipment on account Common shares issued from treasury for benefit plans (Note 18) Notes receivable from municipalities for economic development incentives - Cashless exercise of stock options - Settlement of receivable through cashless acquisition of treasury shares in connection with the cashless exercise of stock options - |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Accounts Receivable Disclosure | |
Schedule of Accounts Receivable | June 30, September 30, 2015 2014 Accounts receivable from: Customers $ $ Other (Chinese financial institutions) Allowance for uncollectible customer amounts $ $ |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Inventories | |
Schedule of Inventories | June 30, September 30, 2015 2014 Raw materials $ $ Work in progress Component parts (1) Finished goods $ $ |
Property, Plant, and Equipmen35
Property, Plant, and Equipment, Net (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Property, Plant, and Equipment, Net | |
Schedule of Property Plant and Equipment, Net | June 30, September 30, 2015 2014 Land and land improvements $ $ Buildings and improvements Leasehold improvements Machinery and production equipment Computer equipment and software Office furniture and equipment Other Construction in progress Less accumulated depreciation Property, plant and equipment, net $ $ |
Schedule of Depreciation Expense | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Depreciation expense $ $ $ $ |
Schedule of Capitalized Interest | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Capitalized interest $ $ $ $ |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Goodwill Disclosure | |
Schedule of Goodwill | September 30, 2014 Effects of Foreign Currency Translation June 30, 2015 Aerospace $ $ - $ Energy Consolidated $ $ $ |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Intangible Assets, Net | |
Schedule of Finite-Lived Intangible Assets by Major Class | June 30, 2015 September 30, 2014 Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Customer relationships and contracts: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Intellectual property: Aerospace $ - $ - $ - $ - $ - $ - Energy Total $ $ $ $ $ $ Process technology: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Other intangibles: Aerospace $ $ $ $ $ $ Energy Total $ $ $ $ $ $ Total intangibles: Aerospace $ $ $ $ $ $ Energy Consolidated Total $ $ $ $ $ $ |
Schedule of Finite-Lived Intangible Assets Amortization Expense | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Amortization expense $ $ $ $ |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Year Ending September 30: 2015 (remaining) $ 2016 2017 2018 2019 Thereafter $ |
Credit Facilities, Short-term38
Credit Facilities, Short-term Borrowings and Long-term Debt (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure | |
Schedule of Long-term Debt Instruments [Table Text Block] | June 30, September 30, 2015 2014 Revolving credit facility - Floating rate ( LIBOR plus 0.85% - 1.65% ), due April 2020 , unsecured Series C notes – 5.92%, due October 2015; unsecured Series D notes – 6.39%, due October 2018; unsecured Series E notes – 7.81%, due April 2016; unsecured Series F notes – 8.24%, due April 2019; unsecured Series G notes – 3.42%, due November 2020; unsecured Series H notes – 4.03%, due November 2023; unsecured Series I notes – 4.18%, due November 2025; unsecured Series J notes – Floating rate ( LIBOR plus 1.25% ), due November 2020; unsecured Series K notes – 4.03%, due November 2023; unsecured Series L notes – 4.18%, due November 2025; unsecured Total long-term debt $ $ |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities | |
Accrued Liabilities | June 30, September 30, 2015 2014 Salaries and other member benefits $ $ Warranties Interest payable Current portion of acquired performance obligations and unfavorable contracts (1) Accrued retirement benefits Deferred revenues Taxes, other than income Other $ $ |
Warranties | Nine-Months Ended June 30, 2015 2014 Warranties, beginning of period $ $ Expense Reductions for settling warranties Foreign currency exchange rate changes Warranties, end of period $ $ |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Other Liabilities | |
Schedule of Other Liabilities | June 30, September 30, 2015 2014 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ $ Total unrecognized tax benefits, net of offsetting adjustments Acquired performance obligations and unfavorable contracts (1) Deferred economic incentives (2) Other $ $ |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Other (Income) Expense, Net | |
Schedule of Other (Income) Expense, Net | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Net (gain) loss on sales of assets $ $ $ $ Rent income Net gain on investments in deferred compensation program Other $ $ $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Income Taxes | |
Tax Expense and Effective Tax Rate | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Earnings before income taxes $ $ $ $ Income tax expense Effective tax rate |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Schedule of Estimated Remaining Cash Contributions | Retirement pension benefits: United States $ United Kingdom Japan - Other postretirement benefits |
Pension Plans, Defined Benefit [Member] | |
Schedule of Net Periodic Benefit Costs | Three-Months Ended June 30, United States Other Countries Total 2015 2014 2015 2014 2015 2014 Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets Amortization of: Net actuarial (gain) loss Prior service cost (benefit) - Curtailment (gain) loss - - - - Net periodic retirement pension (benefit) cost $ $ $ $ $ $ Contributions paid $ - $ $ $ $ $ Nine-Months Ended June 30, United States Other Countries Total 2015 2014 2015 2014 2015 2014 Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets Amortization of: Net actuarial (gain) loss Prior service cost (benefit) - Curtailment (gain) loss - - - - Net periodic retirement pension (benefit) cost $ $ $ $ $ $ Contributions paid $ - $ $ $ $ $ |
Multiemployer Plan [Member] | |
Schedule of Costs of Retirement Plans | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Company contributions $ $ $ $ |
Defined Contribution Plan [Member] | |
Schedule of Costs of Retirement Plans | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Company costs $ $ $ $ |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |
Schedule of Net Periodic Benefit Costs | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Amortization of: Net actuarial (gain) loss Prior service cost (benefit) Net periodic other postretirement (benefit) cost $ $ $ $ Contributions paid $ $ $ $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Stock-Based Compensation | |
Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Expected term (years) n/a n/a - 8.8 - 8.6 Estimated volatility n/a n/a 36.5% 38.5% Estimated dividend yield n/a n/a 0.7% 0.8% Risk-free interest rate n/a n/a - 2.3% - 2.5% |
Activity for Stock Option Awards | Three-Months Ended Nine-Months Ended June 30, 2015 June 30, 2015 Number of options Weighted-Average Exercise Price per Share Number of options Weighted-Average Exercise Price per Share Options, beginning balance $ $ Options granted - n/a Options exercised Options forfeited Options, ending balance |
Changes in Nonvested Stock Options | Three-Months Ended Nine-Months Ended June 30, 2015 June 30, 2015 Number of options Weighted-Average Exercise Price per Share Number of options Weighted-Average Exercise Price per Share Options, beginning balance $ $ Options granted - n/a Options vested Options forfeited Options, ending balance |
Stock Options Vested, Or Expected to Vest and Are Exercisable | Number Weighted- Average Exercise Price Weighted- Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 4,784 $ 5.8 $ Options vested and exercisable 3,055 4.3 Options vested and expected to vest 4,682 5.7 |
Changes in Restricted Stock Awards | Three-Months Ended Nine-Months Ended June 30, 2015 June 30, 2015 Number Fair Value per Share Number Fair Value per Share Beginning balance $ $ Shares granted - n/a - n/a Shares vested - n/a - n/a Shares forfeited - n/a - n/a Ending balance |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Segment Information | |
Consolidated Net Sales and Earnings by Segment | Three-Months Ended Nine-Months Ended June 30, June 30, 2015 2014 2015 2014 Segment external net sales: Aerospace $ $ $ $ Energy Total consolidated net sales $ $ $ $ Segment earnings: Aerospace $ $ $ $ Energy Total segment earnings Nonsegment expenses Interest expense, net Consolidated earnings before income taxes $ $ $ $ |
Consolidated Total Assets by Segment | June 30, 2015 September 30, 2014 Segment assets: Aerospace $ $ Energy Total segment assets Unallocated corporate property, plant and equipment, net Other unallocated assets Consolidated total assets $ $ |
Recent Accounting Pronounceme46
Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Recent Accounting Pronouncements | ||
Balance of unamortized debt issuance costs | $ 5,834 | $ 4,276 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Payments for Repurchase of Common Stock | $ 157,118 | $ 141,488 | |
Goldman Sachs Accelerated Share Repurchase Program [Member] | |||
Accelerated Share Repurchase Program, Execution Date | Jun. 2, 2015 | ||
Payments for Repurchase of Common Stock | $ 125,000 | ||
Purchases of treasury stock, shares | 2,048 | ||
Stock Repurchase Program Expiration Date | Dec. 31, 2015 | ||
Dilutive effect of Accelerated Stock Repurchase shares | 2,048 |
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 | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share | ||||
Net earnings | $ 43,753 | $ 46,001 | $ 131,392 | $ 114,182 |
Basic shares outstanding | 64,781 | 65,845 | 65,088 | 66,736 |
Dilutive effect of stock options and restricted stock | 1,446 | 1,302 | 1,416 | 1,294 |
Diluted shares outstanding | 66,227 | 67,147 | 66,504 | 68,030 |
Basic earnings per share | $ 0.68 | $ 0.70 | $ 2.02 | $ 1.71 |
Diluted earnings per share | $ 0.66 | $ 0.69 | $ 1.98 | $ 1.68 |
Earnings Per Share (Anti-diluti
Earnings Per Share (Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share) (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share | ||||
Options | 0 | 677 | 699 | 236 |
Weighted-average option price | $ 40.99 | $ 46.55 | $ 41.05 |
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 | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share | ||||
Weighted-average treasury stock shares held for deferred compensation obligations | 182 | 206 | 194 | 220 |
Joint Venture (Narrative) (Deta
Joint Venture (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Proceeds from Sale of Productive Assets | $ 2,486 | $ 258 | |
Woodward and General Electric Joint Venture [Member] | |||
Agreement to Form Joint Venture, Execution Date | May 20, 2015 | ||
Woodward and General Electric Joint Venture [Member] | Scenario, Forecast [Member] | |||
Proceeds from Sale of Productive Assets | $ 250,000 | ||
Proceeds from Sale of Productive Assets, Annual Payments | $ 4,900 | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Financial Instruments and Fai52
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Financial liability on recurring basis | $ 0 | $ 0 |
Long Term Note Receivable From Municipality Within The State Of Illinois [Member] | ||
Interest rate used to estimate fair value | 3.30% | 3.20% |
Long Term Note Receivable From Municipality Within The State Of Colorado [Member] | ||
Interest rate used to estimate fair value | 3.30% | 3.20% |
Borrowings [Member] | ||
Interest rate used to estimate fair value | 2.60% | 2.40% |
Financial Instruments and Fai53
Financial Instruments and Fair Value Measurements (Financial Assets that are Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Equity securities | $ 10,399 | $ 9,645 |
Total financial assets | 97,783 | 124,932 |
Fair Value, Inputs, Level 1 [Member] | ||
Equity securities | 10,399 | 9,645 |
Total financial assets | 97,783 | 124,932 |
Fair Value, Inputs, Level 2 [Member] | ||
Equity securities | 0 | 0 |
Total financial assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Equity securities | 0 | 0 |
Total financial assets | 0 | 0 |
Cash [Member] | ||
Cash and cash equivalents | 77,855 | 92,590 |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 77,855 | 92,590 |
Cash [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Cash [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments in Money Market Funds [Member] | ||
Cash and cash equivalents | 4,117 | 11,210 |
Investments in Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 4,117 | 11,210 |
Investments in Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments in Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments in Reverse Repurchase Agreements [Member] | ||
Cash and cash equivalents | 5,412 | 11,487 |
Investments in Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 5,412 | 11,487 |
Investments in Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments in Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Financial Instruments and Fai54
Financial Instruments and Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Notes receivable from municipalities, Carrying Cost | $ 15,631 | $ 15,228 |
Short-term borrowings, Carrying Cost | (3,186) | 0 |
Long-term debt, including current portion, Carrying Cost | (875,000) | (710,000) |
Fair Value, Inputs, Level 2 [Member] | ||
Notes receivable from municipalities, Estimated Fair Value | 15,723 | 15,988 |
Long-term debt, including current portion, Estimated Fair Value | $ (901,979) | $ (752,513) |
Derivative Instruments and He55
Derivative Instruments and Hedging Activities (Narrative) (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015CNY (¥) | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Net unrecognized losses on terminated derivative instruments expected to be reclassified to earnings | $ 64 | ||||||
Term of gain or loss recognition in interest expense on terminated derivatives recorded in OCI | 12 months | ||||||
Description of Net Investment Hedge Activity | In June 2015, Woodward designated an intercompany loan of 160,000 RMB between two wholly owned subsidiaries as a hedge of a foreign currency exposure of the net investment of the borrower in the lender. A foreign exchange gain on the loan of $11, net of taxes, is included in foreign currency translation adjustments within total comprehensive earnings for the three and nine-months ended June 30, 2015. | ||||||
Intercompany Loan [Member] | |||||||
Foreign exchange gain/loss on loan to hedge foreign currency exposure | $ 11 | ||||||
Value of Net Investment Hedging Instruments Used | ¥ | ¥ 160,000 | ||||||
Interest Expense [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | |||||||
Amount of Gain/Loss Recognized in Accumulated OCI on Derivative | $ 0 | $ 0 | $ 0 | $ 0 | |||
Total Accumulated Other Comprehensive (Loss) Earnings [Member] | |||||||
Unrecognized gains (loss) | $ 244 | $ 170 |
Derivative Instruments and He56
Derivative Instruments and Hedging Activities (Impact of Derivative Instruments on Earnings) (Details) - Interest Expense [Member] - Derivatives in Cash Flow Hedging Relationships [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amount of (Income) Expense Recognized in Earnings on Derivative | $ 25 | $ 24 | $ 74 | $ 73 |
Amount of Gain/Loss Recognized in Accumulated OCI on Derivative | 0 | 0 | 0 | 0 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ 25 | $ 24 | $ 74 | $ 73 |
Supplemental Statements of Ca57
Supplemental Statements of Cash Flows Information (Schedule of Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental Statements of Cash Flows Information | ||
Interest paid, net of amounts capitalized | $ 30,090 | $ 26,619 |
Income taxes paid | 48,801 | 36,345 |
Income tax refunds received | 426 | 1,617 |
Purchases of property, plant and equipment on account | 39,122 | 19,193 |
Common shares issued from treasury for benefit plans (Note 18) | 12,574 | 11,193 |
Notes receivable from municipalities for economic development incentives | 0 | 6,596 |
Cashless exercise of stock options | 0 | 715 |
Settlement of receivable through cashless acquisition of treasury shares in connection with the cashless exercise of stock options | $ 0 | $ 871 |
Accounts Receivable (Schedule o
Accounts Receivable (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Accounts receivable | $ 274,902 | $ 346,858 |
Allowance for uncollectible customer amounts | (5,127) | (7,078) |
Trade Accounts Receivable [Member] | ||
Accounts Receivable, Gross | 266,422 | 291,584 |
Accounts Receivable from Chinese Financial Institution [Member] | ||
Accounts Receivable, Gross | $ 13,607 | $ 62,352 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Inventories | ||
Raw Materials | $ 70,878 | $ 60,442 |
Work in progress | 99,493 | 93,836 |
Component Parts | 263,410 | 247,299 |
Finished Goods | 52,122 | 50,367 |
Inventory, net | $ 485,903 | $ 451,944 |
Property, Plant, and Equipmen60
Property, Plant, and Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
Construction in progress | $ 216,021 | $ 223,958 |
Property, Plant and Equipment, Net | 688,336 | 513,279 |
Second Campus Rockford Illinois [Member] | ||
Construction in progress | 27,633 | 85,283 |
Capitalized interest | 430 | 2,963 |
New Campus Fort Collins Colorado [Member] | ||
Construction in progress | 117,882 | 37,268 |
Capitalized interest | 3,996 | 2,392 |
Building Site Niles Illinois [Member] | ||
Construction in progress | 4,960 | 55,629 |
Building and Building Improvements [Member] | Second Campus Rockford Illinois [Member] | ||
Contruction in progress placed into service | 120,000 | |
Buildings and improvements and Office furniture and equipment [Member] | Building Site Niles Illinois [Member] | ||
Contruction in progress placed into service | 72,000 | |
Assets Held-for-sale [Member] | Land and Building [Member] | ||
Property, Plant and Equipment, Net | $ 692 | $ 2,465 |
Property, Plant, and Equipmen61
Property, Plant, and Equipment, Net (Property, Plant, and Equipment - Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Property, Plant, and Equipment, Net | |||||
Land and Land Improvements | $ 63,626 | $ 63,626 | $ 66,303 | ||
Buildings and improvements | 375,068 | 375,068 | 197,587 | ||
Leasehold improvements | 17,696 | 17,696 | 20,026 | ||
Machinery and production equipment | 338,531 | 338,531 | 326,403 | ||
Computer equipment and software | 105,715 | 105,715 | 103,852 | ||
Office furniture and equipment | 23,906 | 23,906 | 20,992 | ||
Other | 18,466 | 18,466 | 18,839 | ||
Construction in progress | 216,021 | 216,021 | 223,958 | ||
Property, Plant and Equipment, Gross, Total | 1,159,029 | 1,159,029 | 977,960 | ||
Less accumulated depreciation | (470,693) | (470,693) | (464,681) | ||
Property, Plant and Equipment, Net, Total | 688,336 | 688,336 | $ 513,279 | ||
Depreciation expense | 11,280 | $ 10,489 | 33,727 | $ 32,183 | |
Capitalized interest | $ 2,544 | $ 1,676 | $ 7,310 | $ 3,965 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - 3 months ended Sep. 30, 2014 - USD ($) | Total |
Impairment | $ 0 |
Assumed annual compound growth rate after five or ten years | 4.20% |
Minimum [Member] | |
Weighted average cost of capital assumption | 8.93% |
Maximum [Member] | |
Weighted average cost of capital assumption | 11.04% |
Goodwill (Goodwill) (Details)
Goodwill (Goodwill) (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill, Beginning Balance | $ 559,724 |
Effects of Currency Translation | (1,285) |
Goodwill, Ending Balance | 558,439 |
Aerospace [Member] | |
Goodwill, Beginning Balance | 455,423 |
Effects of Currency Translation | 0 |
Goodwill, Ending Balance | 455,423 |
Energy [Member] | |
Goodwill, Beginning Balance | 104,301 |
Effects of Currency Translation | (1,285) |
Goodwill, Ending Balance | $ 103,016 |
Intangible Assets, Net (Schedul
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Gross Carrying Value | $ 453,609 | $ 453,609 | $ 454,187 | ||
Accumulated Amortization | (220,992) | (220,992) | (199,415) | ||
Net Carrying Amount | 232,617 | 232,617 | 254,772 | ||
Amortization expense | 7,224 | $ 8,357 | 22,026 | $ 25,498 | |
Process Technology [Member] | |||||
Gross Carrying Value | 99,885 | 99,885 | 99,683 | ||
Accumulated Amortization | (50,401) | (50,401) | (44,860) | ||
Net Carrying Amount | 49,484 | 49,484 | 54,823 | ||
Customer Relationships [Member] | |||||
Gross Carrying Value | 323,791 | 323,791 | 323,931 | ||
Accumulated Amortization | (144,192) | (144,192) | (129,313) | ||
Net Carrying Amount | 179,599 | 179,599 | 194,618 | ||
Intellectual Property [Member] | |||||
Gross Carrying Value | 19,473 | 19,473 | 19,954 | ||
Accumulated Amortization | (16,616) | (16,616) | (15,938) | ||
Net Carrying Amount | 2,857 | 2,857 | 4,016 | ||
Other Intangibles [Member] | |||||
Gross Carrying Value | 10,460 | 10,460 | 10,619 | ||
Accumulated Amortization | (9,783) | (9,783) | (9,304) | ||
Net Carrying Amount | 677 | 677 | 1,315 | ||
Aerospace [Member] | |||||
Gross Carrying Value | 367,930 | 367,930 | 367,930 | ||
Accumulated Amortization | (156,434) | (156,434) | (137,465) | ||
Net Carrying Amount | 211,496 | 211,496 | 230,465 | ||
Aerospace [Member] | Process Technology [Member] | |||||
Gross Carrying Value | 76,605 | 76,605 | 76,605 | ||
Accumulated Amortization | (35,989) | (35,989) | (31,719) | ||
Net Carrying Amount | 40,616 | 40,616 | 44,886 | ||
Aerospace [Member] | Customer Relationships [Member] | |||||
Gross Carrying Value | 282,225 | 282,225 | 282,225 | ||
Accumulated Amortization | (111,495) | (111,495) | (97,281) | ||
Net Carrying Amount | 170,730 | 170,730 | 184,944 | ||
Aerospace [Member] | Intellectual Property [Member] | |||||
Gross Carrying Value | 0 | 0 | 0 | ||
Accumulated Amortization | 0 | 0 | 0 | ||
Net Carrying Amount | 0 | 0 | 0 | ||
Aerospace [Member] | Other Intangibles [Member] | |||||
Gross Carrying Value | 9,100 | 9,100 | 9,100 | ||
Accumulated Amortization | (8,950) | (8,950) | (8,465) | ||
Net Carrying Amount | 150 | 150 | 635 | ||
Energy [Member] | |||||
Gross Carrying Value | 85,679 | 85,679 | 86,257 | ||
Accumulated Amortization | (64,558) | (64,558) | (61,950) | ||
Net Carrying Amount | 21,121 | 21,121 | 24,307 | ||
Energy [Member] | Process Technology [Member] | |||||
Gross Carrying Value | 23,280 | 23,280 | 23,078 | ||
Accumulated Amortization | (14,412) | (14,412) | (13,141) | ||
Net Carrying Amount | 8,868 | 8,868 | 9,937 | ||
Energy [Member] | Customer Relationships [Member] | |||||
Gross Carrying Value | 41,566 | 41,566 | 41,706 | ||
Accumulated Amortization | (32,697) | (32,697) | (32,032) | ||
Net Carrying Amount | 8,869 | 8,869 | 9,674 | ||
Energy [Member] | Intellectual Property [Member] | |||||
Gross Carrying Value | 19,473 | 19,473 | 19,954 | ||
Accumulated Amortization | (16,616) | (16,616) | (15,938) | ||
Net Carrying Amount | 2,857 | 2,857 | 4,016 | ||
Energy [Member] | Other Intangibles [Member] | |||||
Gross Carrying Value | 1,360 | 1,360 | 1,519 | ||
Accumulated Amortization | (833) | (833) | (839) | ||
Net Carrying Amount | $ 527 | $ 527 | $ 680 |
Intangible Assets, Net (Sched65
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Intangible Assets, Net | ||
2015 (remaining) | $ 7,230 | |
2,016 | 27,568 | |
2,017 | 25,861 | |
2,018 | 25,037 | |
2,019 | 23,201 | |
Thereafter | 123,720 | |
Finite-Lived Intangible Assets, Net, Total | $ 232,617 | $ 254,772 |
Credit Facilities, Short-term66
Credit Facilities, Short-term Borrowings (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
Short-term borrowings | $ 3,186 | $ 0 |
Foreign Lines of Credit And Overdraft Facilities [Member] | ||
Outstanding borrowings | $ 0 | |
Revolving Credit Facility [Member] | ||
Variable Rate Basis | LIBOR | |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Basis Spread On Variable Rate | 0.85% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Basis Spread On Variable Rate | 1.65% | |
Amended Revolving Credit Agreement [Member] | ||
Variable Rate Basis | LIBOR |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2015 | Dec. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Sep. 30, 2014 | |
Debt financing costs | $ 2,359 | $ 1,297 | ||||
Balance of unamortized debt issuance costs | $ 5,834 | $ 5,834 | $ 4,276 | |||
2008 Note Purchase Agreement [Member] | ||||||
Issuance Date | Oct. 1, 2008 | |||||
2009 Note Purchase Agreement [Member] | ||||||
Issuance Date | Apr. 1, 2009 | |||||
2013 Note Purchase Agreement [Member] | ||||||
Issuance Date | Oct. 1, 2013 | |||||
Face Amount | $ 250,000 | $ 250,000 | ||||
Debt financing costs | $ 1,297 | |||||
Series J Notes [Member] | ||||||
Variable Rate Basis | LIBOR | |||||
Basis Spread On Variable Rate | 1.25% | |||||
Variable interest rate | 1.53% | 1.53% | ||||
First Closing Notes [Member] | ||||||
Issuance Date | Oct. 1, 2013 | |||||
Second Closing Notes [Member] | ||||||
Issuance Date | Nov. 15, 2013 | |||||
Foreign Lines of Credit And Overdraft Facilities [Member] | ||||||
Outstanding borrowings | $ 0 | $ 0 | ||||
Revolving Credit Facility [Member] | ||||||
Variable Rate Basis | LIBOR | |||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||
Basis Spread On Variable Rate | 0.85% | |||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Basis Spread On Variable Rate | 1.65% | |||||
Chinese Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 22,700 | $ 22,700 | 22,700 | |||
Outstanding borrowings | $ 0 | $ 0 | ||||
Chinese Credit Facility, RMB Denominated Loan [Member] | ||||||
Variable Rate Basis | interest at the prevailing interest rate offered by the People's Bank of China on the date of borrowing, plus a margin equal to 25% of that prevailing rate | |||||
Chinese Credit Facility, USD Denominated Loan [Member] | ||||||
Variable Rate Basis | interest at the lender's cost of borrowing rate at the date of borrowing, plus 3% | |||||
Revolving Credit Agreement [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 600,000 | |||||
Outstanding borrowings | $ 210,000 | |||||
Credit facility effective interest rate on outstanding borrowing | 1.21% | |||||
Amended Revolving Credit Agreement [Member] | ||||||
Variable interest rate | 1.24% | 1.24% | ||||
Debt Covenant, Leverage Ratio, Maximum | ||||||
Debt Covenant, Minimum Consolidated Net Worth Calculation, Base Value | $ 800,000 | $ 800,000 | ||||
Debt Covenant, Minimum Consolidated Net Worth Calculation, Percentage of Net Income | 50.00% | 50.00% | ||||
Debt Covenant, Minimum Consolidated Net Worth Calculation, Percentage of Net Proceeds of Issuance of Capital Stock | 50.00% | 50.00% | ||||
Debt Covenant, Leverage Ratio During Material Acquisition Period, Maximum | ||||||
Line of Credit Facility, Initiation Date | Apr. 28, 2015 | |||||
Line of Credit Facility, Expiration Date | Apr. 28, 2020 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | $ 1,000,000 | ||||
Outstanding borrowings | $ 375,000 | $ 375,000 | ||||
Credit facility effective interest rate on outstanding borrowing | 1.24% | 1.24% | ||||
Amended Revolving Credit Agreement [Member] | Minimum [Member] | ||||||
Basis Spread On Variable Rate | 0.85% | |||||
Amended Revolving Credit Agreement [Member] | Maximum [Member] | ||||||
Basis Spread On Variable Rate | 1.65% |
Long-term Debt (Schedule of Lon
Long-term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Long-term debt balance | $ 875,000 | $ 710,000 |
Short-term Debt | 3,186 | 0 |
Series C Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 50,000 | $ 50,000 |
Interest rate | 5.92% | 5.92% |
Maturity date | Oct. 1, 2015 | Oct. 1, 2015 |
Series D Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 100,000 | $ 100,000 |
Interest rate | 6.39% | 6.39% |
Maturity date | Oct. 1, 2018 | Oct. 1, 2018 |
Series E Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 57,000 | $ 57,000 |
Interest rate | 7.81% | 7.81% |
Maturity date | Apr. 3, 2016 | Apr. 3, 2016 |
Series F Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 43,000 | $ 43,000 |
Interest rate | 8.24% | 8.24% |
Maturity date | Apr. 3, 2019 | Apr. 3, 2019 |
Series J Notes [Member] | ||
Variable interest rate | 1.53% | |
Variable Rate Basis | LIBOR | |
Basis Spread On Variable Rate | 1.25% | |
Series J Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 50,000 | $ 50,000 |
Basis Spread On Variable Rate | 1.25% | 1.25% |
Maturity date | Nov. 15, 2020 | Nov. 15, 2020 |
Series G Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 50,000 | $ 50,000 |
Interest rate | 3.42% | 3.42% |
Maturity date | Nov. 15, 2020 | Nov. 15, 2020 |
Series H Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 25,000 | $ 25,000 |
Interest rate | 4.03% | 4.03% |
Maturity date | Nov. 15, 2023 | Nov. 15, 2023 |
Series I Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 25,000 | $ 25,000 |
Interest rate | 4.18% | 4.18% |
Maturity date | Nov. 15, 2025 | Nov. 15, 2025 |
Series K Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 50,000 | $ 50,000 |
Interest rate | 4.03% | 4.03% |
Maturity date | Nov. 15, 2023 | Nov. 15, 2023 |
Series L Notes [Member] | Notes Payable to Banks [Member] | ||
Long-term debt balance | $ 50,000 | $ 50,000 |
Interest rate | 4.18% | 4.18% |
Maturity date | Nov. 15, 2025 | Nov. 15, 2025 |
Revolving Credit Facility [Member] | ||
Long-term debt balance | $ 375,000 | $ 210,000 |
Variable Rate Basis | LIBOR | |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Basis Spread On Variable Rate | 0.85% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Basis Spread On Variable Rate | 1.65% | |
Revolving Credit Agreement [Member] | ||
Credit facility effective interest rate on outstanding borrowing | 1.21% | |
Amended Revolving Credit Agreement [Member] | ||
Variable interest rate | 1.24% | |
Credit facility effective interest rate on outstanding borrowing | 1.24% | |
Maturity date | Apr. 1, 2020 | |
Amended Revolving Credit Agreement [Member] | Minimum [Member] | ||
Basis Spread On Variable Rate | 0.85% | |
Amended Revolving Credit Agreement [Member] | Maximum [Member] | ||
Basis Spread On Variable Rate | 1.65% | |
Chinese Credit Facility, RMB Denominated Loan [Member] | ||
Variable Rate Basis | interest at the prevailing interest rate offered by the People's Bank of China on the date of borrowing, plus a margin equal to 25% of that prevailing rate | |
Chinese Credit Facility, USD Denominated Loan [Member] | ||
Variable Rate Basis | interest at the lender's cost of borrowing rate at the date of borrowing, plus 3% |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
Accrued Liabilities | ||||
Salaries and other member benefits | $ 56,609 | $ 95,031 | ||
Warranties | 13,690 | 16,916 | $ 16,796 | $ 15,224 |
Interest payable | 6,241 | 12,487 | ||
Current portion of acquired performance obligations and unfavorable contracts | 8,417 | 16,432 | ||
Accrued retirement benefits | 2,261 | 2,286 | ||
Deferred revenues | 10,040 | 6,108 | ||
Taxes, other than income | 6,535 | 8,557 | ||
Other | 10,527 | 14,914 | ||
Accrued liabilities | $ 114,320 | $ 172,731 |
Accrued Liabilities (Warranties
Accrued Liabilities (Warranties) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accrued Liabilities | ||
Warranties, beginning of period | $ 16,916 | $ 15,224 |
Warranty Expense | 6,651 | 7,006 |
Reductions for settling warranties | (9,245) | (5,552) |
Foreign currency exchange rate changes | (632) | 118 |
Warranties, end of period | $ 13,690 | $ 16,796 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Other Liabilities | ||
Net accrued retirement benefits, less amounts recognized within accrued liabilities | $ 38,039 | $ 38,850 |
Total unrecognized tax benefits, net of offsetting adjustments | 16,013 | 14,707 |
Acquired performance obligations and unfavorable contracts | 4,712 | 12,792 |
Deferred economic incentives | 19,107 | 18,408 |
Other | 17,670 | 16,454 |
Other liabilities | $ 95,541 | $ 101,211 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other (Income) Expense, Net | ||||
Net (gain) loss on sales of assets | $ (48) | $ (20) | $ (766) | $ 116 |
Rent income | (105) | (124) | (365) | (418) |
Net gain on investments in deferred compensation program | 10 | (306) | (480) | (879) |
Other | 31 | (19) | (40) | (85) |
Other (income) expense, net | $ (112) | $ (469) | $ (1,651) | $ (1,266) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Income Taxes | ||
Estimated decrease in liability for unrecognized tax benefits | $ 3,105 | |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 14,249 | $ 12,807 |
Accrued interest and penalties | 1,468 | 1,158 |
Unrecognized Tax Benefits | $ 23,769 | $ 22,687 |
Income Taxes (Tax Expense and E
Income Taxes (Tax Expense and Effective Tax Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes | ||||
Earnings before income taxes | $ 57,559 | $ 62,468 | $ 172,222 | $ 152,168 |
Income tax expense | $ 13,806 | $ 16,467 | $ 40,830 | $ 37,986 |
Effective tax rate | 24.00% | 26.40% | 23.70% | 25.00% |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Value of Company Stock Contributed to Defined Contribution Benefit Plans | $ 12,574 | $ 11,193 | $ 12,574 | $ 11,193 |
Treasury Stock Issued During Period, Shares, Employee Benefit Plans | 259 | 260 | ||
Business Acquisition, Acquiree - Duarte Business [Member] | ||||
Pension and Other Postretirement Defined Benefit Plans Liabilities | 80 | |||
Treasury Stock at Cost [Member] | ||||
Value of Company Stock Contributed to Defined Contribution Benefit Plans | $ 8,084 | $ 8,356 | ||
Treasury Stock Issued During Period, Shares, Employee Benefit Plans | 259 | 260 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Costs of Retirement Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Multiemployer Plan [Member] | ||||
Company Contributions | $ 142 | $ 180 | $ 452 | $ 555 |
Defined Contribution Plan [Member] | ||||
Company Costs | $ 7,908 | $ 5,537 | $ 23,034 | $ 16,219 |
Retirement Benefits (Schedule77
Retirement Benefits (Schedule of Net Perioodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Plans, Defined Benefit [Member] | ||||
Service cost | $ 697 | $ 1,135 | $ 2,103 | $ 3,400 |
Interest cost | 2,016 | 2,218 | 6,070 | 6,631 |
Expected return on plan assets | (3,413) | (3,213) | (10,268) | (9,607) |
Amortization of: Net actuarial (gain) loss | 146 | 249 | 439 | 738 |
Amortization of: Prior service (benefit) cost | 96 | 18 | 288 | 53 |
Curtailment (gain) loss | 0 | (915) | 0 | (915) |
Net periodic retirement pension (beneift) cost | (458) | (508) | (1,368) | 300 |
Contributions paid | 143 | 276 | 1,365 | 2,743 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ||||
Service cost | 504 | 872 | 1,513 | 2,616 |
Interest cost | 1,489 | 1,602 | 4,475 | 4,815 |
Expected return on plan assets | (2,662) | (2,432) | (7,994) | (7,299) |
Amortization of: Net actuarial (gain) loss | 99 | 83 | 297 | 248 |
Amortization of: Prior service (benefit) cost | 96 | 19 | 288 | 56 |
Curtailment (gain) loss | 0 | 0 | 0 | 0 |
Net periodic retirement pension (beneift) cost | (474) | 144 | (1,421) | 436 |
Contributions paid | 0 | 100 | 0 | 400 |
Foreign Pension Plans, Defined Benefit [Member] | ||||
Service cost | 193 | 263 | 590 | 784 |
Interest cost | 527 | 616 | 1,595 | 1,816 |
Expected return on plan assets | (751) | (781) | (2,274) | (2,308) |
Amortization of: Net actuarial (gain) loss | 47 | 166 | 142 | 490 |
Amortization of: Prior service (benefit) cost | 0 | (1) | 0 | (3) |
Curtailment (gain) loss | 0 | (915) | 0 | (915) |
Net periodic retirement pension (beneift) cost | 16 | (652) | 53 | (136) |
Contributions paid | 143 | 176 | 1,365 | 2,343 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Service cost | 7 | 11 | 22 | 35 |
Interest cost | 308 | 358 | 925 | 1,074 |
Amortization of: Net actuarial (gain) loss | (18) | (50) | (54) | (150) |
Amortization of: Prior service (benefit) cost | (40) | (40) | (119) | (119) |
Net periodic retirement pension (beneift) cost | 257 | 279 | 774 | 840 |
Contributions paid | $ 570 | $ 481 | $ 1,471 | $ 1,849 |
Retirement Benefits (Schedule78
Retirement Benefits (Schedule of estimated remaining cash contributions) (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2015USD ($) | |
United States Pension Plans of US Entity, Defined Benefit [Member] | |
Estimated future employer contributions in the currect fiscal year | $ 21 |
United Kingdom Plan, Defined Benefit [Member] | |
Estimated future employer contributions in the currect fiscal year | 274 |
Japan Plan, Defined Benefit [Member] | |
Estimated future employer contributions in the currect fiscal year | 0 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |
Estimated future employer contributions in the currect fiscal year | $ 2,307 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2013 | Jun. 30, 2015 | |
Number of stock shares authorized for grants | 7,410 | 7,410 | |
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 12,201 | $ 12,201 | |
Unrecognized compensation cost is expected to be recognized over a weighted-average period | 1 year 6 months | ||
Forfeiture rate, Board of Directors | 0.00% | 0.00% | |
Forfeiture rate, non-Board of Directors | 9.00% | 9.00% | |
Stock Options [Member] | |||
Vesting period, in years | 4 years | ||
Vesting rate | 25.00% | ||
Vested contractual term, in years | 10 years | ||
Restricted Stock Award [Member] | |||
Vesting period, in years | 4 years | ||
Shares granted, Number of Shares | 0 | 24 | 0 |
Service period for restricted stock award | 4 years |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards) (Details) | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Estimated volatility | 36.50% | 38.50% |
Estimated dividend yield | 0.70% | 0.80% |
Minimum [Member] | ||
Expected term | 6 years 2 months 12 days | 5 years 9 months 18 days |
Risk-free interest rate | 2.00% | 1.70% |
Maximum [Member] | ||
Expected term | 8 years 9 months 18 days | 8 years 7 months 6 days |
Risk-free interest rate | 2.30% | 2.50% |
Stock-Based Compensation (Activ
Stock-Based Compensation (Activity for Stock Option Awards) (Details) - Jun. 30, 2015 - $ / shares shares in Thousands | Total | Total |
Stock-Based Compensation | ||
Number of options, beginning balance | 5,111 | 4,501 |
Weighted Average Exercise Price Per Share, beginning balance | $ 30.86 | $ 28.08 |
Options granted, Number of options | 0 | 751 |
Options granted, Weighted Average Exercise Price Per Share | $ 46.55 | |
Options exercised, Number of options | (320) | (428) |
Options exercised, Weighted Average Exercise Price Per Share | $ 17.19 | $ 18.55 |
Options forfeited, Number of options | (7) | (40) |
Options forfeited, Weighted Average Exercise Price Per Share | $ 41.11 | $ 37.80 |
Number of options, ending balance | 4,784 | 4,784 |
Weighted Average Exercise Price Per Share, ending balance | $ 31.76 | $ 31.76 |
Stock-Based Compensation (Chang
Stock-Based Compensation (Changes in Nonvested Stock Options) (Details) - Jun. 30, 2015 - $ / shares shares in Thousands | Total | Total |
Stock-Based Compensation | ||
Number of Options, beginning balance | 1,747 | 1,679 |
Weighted-Average Exercise Price Per Share, beginning balance | $ 40.50 | $ 34.83 |
Options granted, Number of options | 0 | 751 |
Options granted, Weighted-Average Exercise Price Per Share | $ 46.55 | |
Options vested, Number of options | (10) | (661) |
Options vested, Weighted-Average Exercise Price Per Share | $ 34.04 | $ 33.06 |
Options forfeited, Number of options | (7) | (39) |
Options forfeited, Weighted-Average Exercise Price Per Share | $ 41.11 | $ 37.80 |
Number of Options, ending balance | 1,730 | 1,730 |
Weighted-Average Exercise Price Per Share, ending balance | $ 40.53 | $ 40.53 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options Vested, Or Expected to Vest and Are Exercisable) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | ||
Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | |
Stock-Based Compensation | |||
Options outstanding, Number of options | 4,784 | 5,111 | 4,501 |
Options outstanding, Weighted-Average Exercise Price | $ 31.76 | $ 30.86 | $ 28.08 |
Options outstanding, Weighted-Average Remaining Life in Years | 5 years 9 months 18 days | ||
Options outstanding, Aggregate Intrinsic Value | $ 111,163 | ||
Options vested and exercisable, Number of options | 3,055 | ||
Options vested and exercisable, Weighted-Average Exercise Price Per Share | $ 26.79 | ||
Options vested and exercisable, Weighted-Average Remaining Life in Years | 4 years 3 months 18 days | ||
Options vested and exercisable, Aggregate Intrinsic Value | $ 86,162 | ||
Options vested and expected to vest, Number of options | 4,682 | ||
Options vested and expected to vest, Weighted-Average Exercise Price Per Share | $ 31.50 | ||
Options vested and to expected vest, Weighted-Average Remaining Life in Years | 5 years 8 months 12 days | ||
Options vested and expected to vest, Aggregate Intrinsic Value | $ 109,961 |
Stock-Based Compensation (Cha84
Stock-Based Compensation (Changes in Restricted Stock Awards) (Details) - Restricted Stock Award [Member] - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2013 | Jun. 30, 2015 | |
Number of shares, beginning balance | 24 | 24 | |
Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ 39.43 | $ 39.43 | |
Shares granted, Number of Shares | 0 | 24 | 0 |
Shares vested, Number of Shares | 0 | 0 | |
Shares forfeited, Number of Shares | 0 | 0 | |
Number of shares, ending balance | 24 | 24 | |
Weighted-Average Grant Date Fair Value Per Share, ending balance | $ 39.43 | $ 39.43 |
Segment Information (Consolidat
Segment Information (Consolidated Net Sales and Earnings by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 494,810 | $ 524,284 | $ 1,475,678 | $ 1,435,793 |
Interest expense, net | (5,858) | (5,899) | (16,788) | (18,030) |
Consolidated earnings before income taxes | 57,559 | 62,468 | 172,222 | 152,168 |
Total of Reporting Segments [Member] | ||||
Net sales | 494,810 | 524,284 | 1,475,678 | 1,435,793 |
Segment earnings (loss) | 76,981 | 79,560 | 224,894 | 201,357 |
Aerospace [Member] | ||||
Net sales | 288,480 | 274,923 | 825,676 | 765,816 |
Segment earnings (loss) | 46,362 | 39,357 | 127,783 | 102,195 |
Energy [Member] | ||||
Net sales | 206,330 | 249,361 | 650,002 | 669,977 |
Segment earnings (loss) | 30,619 | 40,203 | 97,111 | 99,162 |
Unallocated Corporate [Member] | ||||
Segment earnings (loss) | $ (13,564) | $ (11,193) | $ (35,884) | $ (31,159) |
Segment Information (Consolid86
Segment Information (Consolidated Total Assets by Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Assets | $ 2,511,736 | $ 2,397,202 |
Property, plant and equipment, net | 688,336 | 513,279 |
Aerospace [Member] | ||
Assets | 1,529,882 | 1,440,355 |
Energy [Member] | ||
Assets | 628,995 | 610,345 |
Unallocated Corporate [Member] | ||
Assets | 274,430 | 273,510 |
Property, plant and equipment, net | 78,429 | 72,992 |
Total of Reporting Segments [Member] | ||
Assets | $ 2,158,877 | $ 2,050,700 |
Uncategorized Items - wwd-20150
Label | Element | Value |
Amended Revolving Credit Agreement [Member] | ||
Line of Credit Facility, Option To Increase Maximum Borrowing Capacity | wwd_LineOfCreditFacilityOptionToIncreaseMaximumBorrowingCapacity | $ 1,200,000 |
Debt Covenant, Leverage Ratio Next Two Succeeding Fiscal Quarters Following Material Acquisition, Maximum | wwd_DebtCovenantRatioOfConsolidatedNetDebtToDebtCovenantEbitdaNextTwoSucceedingFiscalQuartersFollowingMaterialAcquisitionMaximum | 3.75 to 1.0 |
Deferred Finance Costs, Gross | us-gaap_DeferredFinanceCostsGross | $ 2,359 |
Line of Credit Facility, Covenant Terms, Cross Default Provision | wwd_LineOfCreditFacilityCovenantTermsCrossDefaultProvision | $ 60,000 |
Brazil Credit Facility Brl Denominated Loan [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity | $ 26,000 |
Outstanding borrowings | us-gaap_LineOfCreditFacilityFairValueOfAmountOutstanding | $ 3,186 |
Debt Instrument, Description of Variable Rate Basis | us-gaap_DebtInstrumentDescriptionOfVariableRateBasis | interest at the lender's cost of borrowing rate at the date of borrowing, plus 1.75% |
Revolving Credit Agreement [Member] | ||
Deferred Finance Costs, Gross | us-gaap_DeferredFinanceCostsGross | $ 2,014 |