Supplemental Statements of Cash Flows Information

9 Months Ended

Jun. 30, 2011

Supplemental Statements of Cash Flows Information

Supplemental Statements of Cash Flows Information

Note 7. Supplemental statements of cash flows information

	Nine-Months Ending
	June 30,
	2011		2010
Interest paid	$	25,596	$	27,627
Income taxes paid		33,549		27,104
Income tax refunds received		9,269		9,008
Non-cash activities:
Purchases of property, plant and equipment on account		1,881		751
Cashless exercise of stock options		1,124		—
Reduction of accounts receivable and short-term borrowing due to the settlement of accounts receivable previously sold with recourse		3,228		—
Reduction of accounts payable due to the assignment of accounts receivable with recourse		570		—
Reduction to goodwill due to favorable resolution of lease termination recorded in restructuring reserve		103		—
Payment of director fees through issuance of treasury stock		38		—

During the first quarter of fiscal 2011, Woodward negotiated a lease settlement that was favorable in comparison to the previously recorded restructuring accrual established in purchase accounting in connection with the fiscal year 2009 acquisition of MPC Products Corporation ("MPC Products") and Techni-Core, Inc. ("Techni-Core" and together with MPC Products "MPC"). The resulting benefit of $103 was recorded as a reduction to goodwill.

MPC Products, one of Woodward's subsidiaries acquired in fiscal year 2009, was previously subject to an investigation by the Department of Justice ("DOJ") regarding certain of its government contract pricing practices prior to June 2005. In the three-months ending December 31, 2009, MPC settled the criminal and civil claims related to the DOJ's investigation and paid $25,000 in compensation and fines. The purchase price Woodward paid in connection with the acquisition of MPC was reduced by $25,000 at the time of the acquisition, which represents the amounts discussed above. Payment of this amount during the nine-months ending June 30, 2010 is reflected as an investing activity in the accompanying Condensed Consolidated Statements of Cash Flows.