Accrued Liabilities

9 Months Ended

Jun. 30, 2011

Accrued Liabilities

Accrued Liabilities

Note 12. Accrued liabilities

	June 30,		September 30,
	2011		2010
Salaries and other member benefits	$	57,300	$	43,598
Current portion of restructuring and other charges		2,740		4,862
Warranties		14,522		10,851
Interest payable		5,689		11,925
Accrued retirement benefits		2,735		2,748
Deferred revenues		7,242		12,376
Taxes, other than income		1,956		4,618
Other		17,542		18,074
	$	109,726	$	109,052

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:

Warranties, September 30, 2010	$	10,851
Increases to accruals related to warranties during the period		4,070
Increases due to acquisition of IDS		2,250
Settlements of amounts accrued		(3,226	)
Foreign currency exchange rate changes		577
Warranties, June 30, 2011	$	14,522

Restructuring and other charges

The main components of accrued non-acquisition related restructuring charges include workforce management costs associated with the early retirement and the involuntary separation of employees in connection with a strategic realignment of global workforce capacity. Restructuring charges related to business acquisitions include a number of items such as those associated with integrating similar operations, workforce management, vacating certain facilities, and the cancellation of some contracts.

During the three-months ending December 31, 2010, 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. The resulting benefit of $103 was recorded as a non-cash charge to restructuring and a reduction to goodwill previously established at the time of the acquisition of MPC. During the three-months ending December 31, 2010, Woodward also modified its exit plan related to its Pacoima, California location. As a result, the Company intends to occupy and continue operating from the Pacoima location for a longer period than originally anticipated. Accordingly, Woodward has reduced the anticipated exit costs by $1,513 for the Pacoima location.

The summary of the activity in accrued restructuring charges during the three and nine-months ending June 30, 2011 is as follows:

	Three-Months Ending
	June 30, 2011
	Restructuring			Business
	Charges			Acquisitions			Total
Accrued restructuring charges, March 31, 2011	$	497		$	3,253		$	3,750
Payments		(63	)		(5	)		(68	)
Non-cash adjustments		3			(453	)		(450	)
Foreign currency exchange rates		3			—			3
Accrued restructuring charges, June 30, 2011	$	440		$	2,795		$	3,235

	Nine-Months Ending
	June 30, 2011
	Restructuring			Business
	Charges			Acquisitions			Total
Accrued restructuring charges, September 30, 2010	$	667		$	5,446		$	6,113
Payments		(208	)		(705	)		(913	)
Non-cash adjustments		(28	)		(1,946	)		(1,974	)
Foreign currency exchange rates		9			—			9
Accrued restructuring charges, June 30, 2011	$	440		$	2,795		$	3,235

Other liabilities included the following amounts of accrued restructuring charges not expected to be settled within twelve months:

	June 30,		September 30,
	2011		2010
Non-current accrued restructuring charges	$	495	$	1,251