Segment Information

9 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

Note 19. Segment information

Woodward has four operating business segments — Turbine Systems, Airframe Systems, Electrical Power Systems, and Engine Systems. Woodward uses segment information internally to manage its business, including the assessment of business segment performance and making decisions on the allocation of resources between segments.

The Company's four operating business segments are strategic business units separately identified by the products and services they offer and by the markets in which they operate. Intersegment sales and transfers are made at established intersegment selling prices generally intended to approximate selling prices to unrelated parties. The Chief Executive Officer evaluates segment profit or loss based on internal performance measures for each business in a given period. In connection with that assessment, the Chief Executive Officer 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 by segment follows:

	Three-Months Ending				Nine-Months Ending
	June 30,				June 30,
	2011		2010		2011		2010
Segment net sales:
Turbine Systems
External net sales	$	187,944	$	148,623	$	505,797	$	433,553
Intersegment sales		3,010		2,545		8,744		7,144
Total segment net sales		190,954		151,168		514,541		440,697
Airframe Systems
External net sales		102,354		93,518		282,065		274,827
Intersegment sales		603		609		1,988		1,900
Total segment net sales		102,957		94,127		284,053		276,727
Electrical Power Systems
External net sales		54,875		36,147		160,254		128,692
Intersegment sales		17,052		11,133		46,180		29,918
Total segment net sales		71,927		47,280		206,434		158,610
Engine Systems
External net sales		93,294		78,079		274,292		207,955
Intersegment sales		10,825		7,987		30,049		24,213
Total segment net sales		104,119		86,066		304,341		232,168
Consolidated
External net sales		438,467		356,367		1,222,408		1,045,027
Intersegment sales		31,490		22,274		86,961		63,175
Total segment net sales	$	469,957	$	378,641	$	1,309,369	$	1,108,202

A summary of consolidated earnings follows:

	Three-Months Ending						Nine-Months Ending
	June 30,						June 30,
	2011			2010			2011			2010
Segment earnings:
Turbine Systems	$	46,067		$	35,934		$	123,151		$	100,363
Airframe Systems		5,512			2,852			4,535			10,237
Electrical Power Systems		3,241			3,072			13,437			15,254
Engine Systems		9,833			9,131			28,129			18,513
Total segment earnings		64,653			50,989			169,252			144,367
Nonsegment expenses		(7,554	)		(6,085	)		(21,599	)		(16,810	)
Interest expense, net		(6,244	)		(6,852	)		(18,836	)		(22,197	)
Consolidated earnings before income taxes	$	50,855		$	38,052		$	128,817		$	105,360

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,		September 30,
	2011		2010
Segment assets:
Turbine Systems	$	381,815	$	347,188
Airframe Systems		745,270		748,297
Electrical Power Systems		231,097		156,788
Engine Systems		229,998		204,495
Total segment assets		1,588,180		1,456,768
Unallocated corporate property, plant and equipment, net		6,853		6,111
Other unallocated assets		167,467		200,354
Consolidated total assets	$	1,762,500	$	1,663,233