Segment Information

9 Months Ended

Jun. 30, 2019

Note 22. Segment information

Woodward serves the aerospace and industrial markets through its two reportable segments - Aerospace and Industrial. When appropriate, Woodward’s reportable segments are aggregations of Woodward’s operating segments. Woodward uses operating segment information internally to manage its business, including the assessment of operating segment performance and decisions for the allocation of resources between operating segments. Woodward L’Orange has been included in Woodward’s Industrial segment results since the Closing.

The accounting policies of the reportable segments are the same as those of the Company. Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period. In connection with that assessment, Woodward generally excludes matters such as certain charges for restructuring, interest income and expense, certain gains and losses from asset dispositions, or other non-recurring and/or non-operationally related expenses.

A summary of consolidated net sales and earnings by segment follows:



	Three-Months Ended				Nine-Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Segment external net sales:
Aerospace	$	498,775	$	404,612	$	1,374,616	$	1,096,860
Industrial		253,230		183,505		789,044		509,654
Total consolidated net sales	$	752,005	$	588,117	$	2,163,660	$	1,606,514
Segment earnings:
Aerospace	$	103,238	$	83,887	$	277,814	$	203,784
Industrial		26,240		10,943		82,537		41,411
Nonsegment expenses		(26,714)		(30,699)		(83,211)		(78,069)
Interest expense, net		(10,450)		(9,714)		(33,143)		(26,575)
Consolidated earnings before income taxes	$	92,314	$	54,417	$	243,997	$	140,551

Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets follows:



	June 30, 2019		September 30, 2018
Segment assets:
Aerospace	$	1,918,353	$	1,805,892
Industrial		1,691,629		1,642,462
Unallocated corporate property, plant and equipment, net		84,321		102,083
Other unallocated assets		321,300		240,212
Consolidated total assets	$	4,015,603	$	3,790,649