Accrued Liabilities

3 Months Ended

Dec. 31, 2020

Accrued Liabilities Current [Abstract]

Accrued Liabilities

Note 16.  Accrued liabilities

	December 31,		September 30,
	2020		2020
Salaries and other member benefits	$	40,392	$	50,850
Warranties		21,079		18,972
Interest payable		5,501		15,281
Accrued retirement benefits		3,063		3,051
Restructuring charges		1,596		3,395
Taxes, other than income		26,432		13,925
Net current contract liabilities (Note 3)		29,385		24,620
Other		28,484		21,700
	$	155,932	$	151,794

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 as revenue is recognized on a non-specific basis whenever past experience indicates a normal and predictable pattern exists.  

Changes in accrued product warranties were as follows:

	Three-Months Ended December 31,
	2020		2019
Warranties, beginning of period	$	18,972	$	27,309
Expense, net of recoveries		1,389		(4,333	)
Reductions for settlement of previous warranty liabilities		392		(4,277	)
Foreign currency exchange rate changes		326		228
Warranties, end of period	$	21,079	$	18,927

Restructuring charges

During the third quarter of fiscal year 2020, the Company committed to a plan of termination (the “Termination Plan”) in response to the ongoing global economic challenges resulting from the COVID-19 pandemic and its impact on the Company’s business. The Termination Plan involved the termination and/or furlough of employees and contractors at certain of the Company’s operating facilities, primarily in the United States. As a result of the Termination Plan, the Company incurred $23,673 of restructuring charges related to employee severance and benefits costs as of September 30, 2020.  All of the restructuring charges recorded during the fiscal year ended September 30, 2020 were recorded as nonsegment expenses.

The summary of activity in accrued restructuring charges during the three-months ended December 31, 2020 and December 31, 2019 are as follows:

			Period Activity
	Balances as of September 30, 2020		Charges (reductions)		Cash receipts (payments)			Foreign currency exchange rate changes		Non-cash activity			Balances as of December 31, 2020
Workforce management costs associated with:
COVID-19 pandemic	$	3,395	$	—	$	(1,742	)	$	45	$	(102	)	$	1,596
Total	$	3,395	$	—	$	(1,742	)	$	45	$	(102	)	$	1,596

			Period Activity
	Balances as of September 30, 2019		Charges (reductions)		Cash receipts (payments)			Foreign currency exchange rate changes		Non-cash activity			Balances as of December 31, 2019
Workforce management costs associated with:
Duarte plant relocation	$	440	$	—	$	(228	)	$	—	$	—		$	212
Industrial turbomachinery business realignment		67		—		—			—		(24	)		43
Total	$	507	$	—	$	(228	)	$	—	$	(24	)	$	255