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Supplemental Quarterly Financial Data
 12 Months Ended
Sep. 30, 2020
Quarterly Financial Information Disclosure [Abstract]  
Supplemental Quarterly Financial Data

Note 25.  Supplemental quarterly financial data (unaudited)

Quarterly results for the fiscal years ended September 30, 2020 and September 30, 2019 follow:

 

 

 

2020 Fiscal Quarters

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

Net sales

 

$

720,355

 

 

$

720,220

 

 

$

523,826

 

 

$

531,264

 

Gross margin (1)

 

 

185,438

 

 

 

202,706

 

 

 

128,315

 

 

 

123,784

 

Earnings before income taxes (2)(3)(4)(5)

 

 

61,548

 

 

 

107,199

 

 

 

45,016

 

 

 

68,118

 

Net earnings (2)(3)(4)(5)

 

 

53,373

 

 

 

91,318

 

 

 

38,465

 

 

 

57,239

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share (2)(3)(4)(5)

 

 

0.86

 

 

 

1.47

 

 

 

0.62

 

 

 

0.92

 

Diluted earnings per share (2)(3)(4)(5)

 

 

0.83

 

 

 

1.41

 

 

 

0.61

 

 

 

0.89

 

Cash dividends per share

 

 

0.1625

 

 

 

0.2800

 

 

 

0.0813

 

 

 

0.0813

 

 

 

 

2019 Fiscal Quarters

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

Net sales

 

$

652,811

 

 

$

758,844

 

 

$

752,005

 

 

$

736,537

 

Gross margin (1)(6)(7)

 

 

160,637

 

 

 

192,003

 

 

 

189,489

 

 

 

165,414

 

Earnings before income taxes (6)(7)(8)

 

 

61,515

 

 

 

90,168

 

 

 

92,314

 

 

 

76,615

 

Net earnings (6)(7)(8)(9)

 

 

49,120

 

 

 

77,579

 

 

 

66,107

 

 

 

66,796

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share (6)(7)(8)(9)

 

 

0.79

 

 

 

1.25

 

 

 

1.07

 

 

 

1.08

 

Diluted earnings per share (6)(7)(8)(9)

 

 

0.77

 

 

 

1.20

 

 

 

1.02

 

 

 

1.03

 

Cash dividends per share

 

 

0.1425

 

 

 

0.1625

 

 

 

0.1625

 

 

 

0.1625

 

 

Notes:

 

1.

Gross margin represents net sales less cost of goods sold.

 

2.

Associated with our decision to relocate our Duarte, California operations to the newly renovated Drake Campus in Fort Collins, Colorado, we closed on the sale of our Duarte real property and recorded a pre-tax gain on sale of assets in the amount of $13,522 in the first quarter of fiscal year 2020 and $8,801 in the fourth quarter of fiscal year 2020.

 

3.

In the first quarter of fiscal year 2020, Woodward approved a plan to divest the disposal group, which resulted in the recognition of the associated assets and liabilities as held for sale.  Concurrently, Woodward determined that the assets held for sale, net of any liabilities held for sale, were impaired and recognized a non-cash impairment charge of $37,902, representing the write down of the associated net assets held for sale to their fair market value as of December 31, 2019.  

 

4.

Results in the third and fourth quarter of fiscal year 2020 include pre-tax restructuring charges totaling $19,040 and $3,176, respectively, which relate to the Company’s response to the ongoing global economic challenges resulting from the COVID-19 pandemic and its impact on the Company’s business.

 

5.

In the third quarter of fiscal year 2020, as a result of the COVID-19 pandemic and future cash flow uncertainties, Woodward elected to terminate and settle its existing cross-currency interest rate swap derivative instruments.  Concurrent with settlement of the derivative instruments, Woodward discontinued the related foreign currency hedging relationships associated with the instruments.  As a result of the termination of the instruments, and related hedging relationships, a pre-tax gain of $30,481 and swap breakage fee of $3,000 were recorded.

 

6.

Results for the fourth quarter of fiscal year 2019 include pre-tax, non-cash charges of $12,601 related to the impairment of receivables, inventory and certain other assets in connection with Senvion, a significant customer of Woodward renewables business, which declared insolvency in fiscal year 2019.

 

7.

Results for the first through third quarters of fiscal year 2019 include pre-tax non-cash charges of $9,511, $8,985, $2,604, respectively. These costs are associated with the purchase accounting impacts related to the revaluation of the L’Orange inventory recognized in cost of goods sold and the amortization of the backlog intangible.

 

8.

Results for the first through fourth quarters of fiscal year 2019 include, pre-tax Duarte move related costs of $6,963, $9,161, $7,035, and $3,930, respectively.    

 

9.

In the third quarter of fiscal year 2019, Woodward recognized additional income tax expense of $10,588 related to the repatriation tax on deferred foreign income related to the December 2017 U.S. Tax legislation.

 

 

 

 

2020 Fiscal Quarters

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

Segment external net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

473,925

 

 

$

474,236

 

 

$

306,494

 

 

$

336,308

 

Industrial

 

 

246,430

 

 

 

245,984

 

 

 

217,332

 

 

 

194,956

 

Total

 

$

720,355

 

 

$

720,220

 

 

$

523,826

 

 

$

531,264

 

Segment earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

92,911

 

 

$

117,638

 

 

$

41,096

 

 

$

58,492

 

Industrial

 

 

28,230

 

 

 

25,972

 

 

 

27,438

 

 

 

18,681

 

Nonsegment expenses (1)(2)(3)(4)

 

 

(51,071

)

 

 

(28,131

)

 

 

(15,158

)

 

 

(170

)

Interest expense, net

 

 

(8,522

)

 

 

(8,280

)

 

 

(8,360

)

 

 

(8,885

)

Consolidated earnings before income taxes

 

$

61,548

 

 

$

107,199

 

 

$

45,016

 

 

$

68,118

 

 

 

 

2019 Fiscal Quarters

 

 

 

First

 

 

Second

 

 

Third

 

 

Fourth

 

Segment external net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

392,887

 

 

$

482,954

 

 

$

498,775

 

 

$

505,904

 

Industrial (5)

 

 

259,924

 

 

 

275,890

 

 

 

253,230

 

 

 

230,633

 

Total

 

$

652,811

 

 

$

758,844

 

 

$

752,005

 

 

$

736,537

 

Segment earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

72,854

 

 

$

101,722

 

 

$

103,238

 

 

$

111,312

 

Industrial (5)

 

 

29,169

 

 

 

27,128

 

 

 

26,240

 

 

 

10,984

 

Nonsegment expenses (6)(7)

 

 

(29,001

)

 

 

(27,496

)

 

 

(26,713

)

 

 

(36,237

)

Interest expense, net

 

 

(11,507

)

 

 

(11,186

)

 

 

(10,451

)

 

 

(9,444

)

Consolidated earnings before income taxes

 

$

61,515

 

 

$

90,168

 

 

$

92,314

 

 

$

76,615

 

 

Notes:

 

1.

Nonsegment expenses for the first quarter and fourth quarter of fiscal year 2020 include a pre-tax gain on the sale of assets of $13,522 and $8,801, respectively, associated with our decision to relocate our Duarte, California operations to the newly renovated Drake Campus in Fort Collins, Colorado.

 

2.

Nonsegment expenses in the first quarter of fiscal year 2020, include a non-cash impairment charge of $37,902, representing the write down of the associated net assets held for sale to their fair market value as of December 31, 2019 related to Woodward’s approved a plan to divest the disposal group.

 

3.

Nonsegment expenses in the third quarter of fiscal year 2020 include a pre-tax gain of $30,481 and a swap breakage fee of $3,000, as a result of terminating and settling our existing cross-currency interest rate swap derivative instruments.

 

4.

Nonsegment expenses in the third quarter and fourth quarter of fiscal year 2020 include a pre-tax restructuring charges totaling $19,040 and $3,176, respectively, which relate to the Company’s response to the ongoing global economic challenges resulting from the COVID-19 pandemic and its impact on the Company’s business.

 

5.

Industrial segment earnings for the first through third quarters of fiscal year 2019 include pre-tax non-cash charges of $9,511, $8,985, $2,604, respectively.  These costs are associated with the purchase accounting impacts related to the revaluation of the L’Orange inventory recognized in cost of goods sold and the amortization of the backlog intangible.

 

6.

Nonsegment expenses for the fourth quarter of fiscal year 2019 include pre-tax, non-cash charges of $12,601 related to the impairment of receivables, inventory and certain other assets in connection with Senvion.

 

7.

Nonsegment expenses for the first through fourth quarters of fiscal year 2019 include, pre-tax Duarte move related costs of $6,963, $9,161, $7,035, and $3,930, respectively.