Segment Information

12 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

Note 23. 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.

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:

	Year Ended September 30,
	2023			2022			2021
Segment external net sales:
Aerospace	$	1,768,103		$	1,519,322		$	1,404,117
Industrial		1,146,463			863,468			841,715
Total consolidated net sales	$	2,914,566		$	2,382,790		$	2,245,832
Segment earnings:
Aerospace	$	290,104		$	230,933		$	234,356
Industrial		161,622			82,788			108,672
Nonsegment expenses		(130,811	)		(81,092	)		(64,442	)
Interest Expense, net		(45,147	)		(32,731	)		(32,787	)
Consolidated earnings before income taxes	$	275,768		$	199,898		$	245,799

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

	Year Ended September 30,
	2023			2022		2021
Segment assets:
Aerospace	$	1,829,410		$	1,773,854	$	1,698,833
Industrial		1,490,341			1,380,446		1,453,423
Unallocated corporate property, plant and equipment, net		104,962			111,760		106,014
Other unallocated assets		585,490			540,386		832,734
Consolidated total assets	$	4,010,203		$	3,806,446	$	4,091,004
Segment depreciation and amortization:
Aerospace	$	59,880		$	60,176	$	62,075
Industrial		51,167			50,584		56,885
Unallocated corporate amounts		8,696			9,868		10,564
Consolidated depreciation and amortization	$	119,743		$	120,628	$	129,524
Segment capital expenditures:
Aerospace	$	56,913		$	23,253	$	17,303
Industrial		21,855			12,399		15,164
Unallocated corporate amounts		(2,268	)		17,216		5,222
Consolidated capital expenditures	$	76,500		$	52,868	$	37,689

Sales to RTX Corporation were made by Woodward’s Aerospace segment and totaled approximately 10% of net sales in fiscal year 2023, 11% of net sales in fiscal year 2022, and 9% of net sales in fiscal year 2021. Sales to GE were made by both of Woodward’s reportable segments and totaled approximately 12% of net sales in fiscal year 2023 and 11% of net sales in fiscal year 2022 and 2021.

Accounts receivable from RTX Corporation totaled approximately 4% of accounts receivable at September 30, 2023 and 6% of accounts receivable at September 30, 2022. Accounts receivable from GE totaled approximately 7% of accounts receivable at September 30, 2023 and 10% of accounts receivable at September 30, 2022.

U.S. Government related sales from Woodward’s reportable segments were as follows:

	Direct U.S. Government Sales			Indirect U.S. Government Sales			Total U.S. Government Related Sales
Fiscal year ended September 30, 2023
Aerospace	$	99,848		$	363,835		$	463,683
Industrial		7,524			14,840			22,364
Total net external sales	$	107,372		$	378,675		$	486,047
Percentage of total net sales		4	%		13	%		17	%
Fiscal year ended September 30, 2022
Aerospace	$	93,266		$	433,646		$	526,912
Industrial		4,759			6,052			10,811
Total net external sales	$	98,025		$	439,698		$	537,723
Percentage of total net sales		4	%		19	%		23	%
Fiscal year ended September 30, 2021
Aerospace	$	116,832		$	526,118		$	642,950
Industrial		7,732			2,442			10,174
Total net external sales	$	124,564		$	528,560		$	653,124
Percentage of total net sales		6	%		23	%		29	%