Accrued Liabilities

9 Months Ended

Jun. 30, 2015

Note 14. Accrued liabilities



	June 30,		September 30,
	2015		2014
Salaries and other member benefits	$	56,609	$	95,031
Warranties		13,690		16,916
Interest payable		6,241		12,487
Current portion of acquired performance obligations and unfavorable contracts (1)		8,417		16,432
Accrued retirement benefits		2,261		2,286
Deferred revenues		10,040		6,108
Taxes, other than income		6,535		8,557
Other		10,527		14,914
	$	114,320	$	172,731

(1)

In connection with Woodward’s acquisition of GE Aviation Systems LLC’s (the “Seller”) thrust reverse actuation systems business located in Duarte, California (the “Duarte Business”) in fiscal year 2013, Woodward assumed current and long-term performance obligations for contractual commitments that are expected to result in future economic losses. In addition, Woodward assumed current and long-term performance obligations for services to be provided to the Seller, offset by current and long-term assets related to contractual payments due from the Seller. The current portion of both obligations is included in Accrued liabilities.

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:



	Nine-Months Ended June 30,
		2015		2014
Warranties, beginning of period	$	16,916	$	15,224
Expense		6,651		7,006
Reductions for settling warranties		(9,245)		(5,552)
Foreign currency exchange rate changes		(632)		118
Warranties, end of period	$	13,690	$	16,796