Segment Information

3 Months Ended

Dec. 31, 2011

Segment Information - WWD

Segment Information

Note 20. Segment information

Woodward serves two significant markets — the aerospace market and the energy market. In order to better serve these markets, Woodward completed a realignment of its reportable segments in September 2011 and now reports its financial results through two reportable segments — Aerospace and Energy. The Aerospace segment combines the aircraft propulsion portion of the former Turbine Systems business group, now referred to as the Aircraft Turbine Systems business group, with the Airframe Systems business group. The Energy segment combines the industrial turbine portion of the former Turbine Systems business group, now referred to as the Industrial Turbomachinery Systems business group, with the Engine Systems and Electrical Power Systems business groups.

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 Ending
	December 31,
	2011			2010
Segment external net sales:
Aerospace	$	193,226		$	181,144
Energy		214,670			183,931
Total consolidated net sales	$	407,896		$	365,075
Segment earnings:
Aerospace	$	27,060		$	19,914
Energy		26,725			24,503
Total segment earnings		53,785			44,417
Nonsegment expenses		(7,427	)		(6,564	)
Interest expense, net		(6,182	)		(6,378	)
Consolidated earnings before income taxes	$	40,176		$	31,475

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:

	December 31,		September 30,
	2011		2011
Segment assets:
Aerospace	$	1,020,158	$	1,036,797
Energy		554,219		569,929
Total segment assets		1,574,377		1,606,726
Unallocated corporate property, plant and equipment, net		11,099		8,556
Other unallocated assets		150,887		166,152
Consolidated total assets	$	1,736,363	$	1,781,434

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