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Accrued Liabilities
 12 Months Ended
Sep. 30, 2021
Accrued Liabilities Current [Abstract]  
Accrued Liabilities

Note 16.  Accrued liabilities

 

 

September 30, 2021

 

 

September 30, 2020

 

Salaries and other member benefits

 

$

54,497

 

 

$

50,850

 

Warranties

 

 

17,481

 

 

 

18,972

 

Interest payable

 

 

14,822

 

 

 

15,281

 

Accrued retirement benefits

 

 

2,825

 

 

 

3,051

 

Net current contract liabilities (Note 3)

 

 

29,527

 

 

 

24,620

 

Current portion of accrued restructuring charges

 

 

4,495

 

 

 

3,395

 

Taxes, other than income

 

 

19,453

 

 

 

13,925

 

Purchase of treasury stock in transit

 

 

12,516

 

 

 

—

 

Other

 

 

27,523

 

 

 

21,700

 

 

 

$

183,139

 

 

$

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:

 

 

 

Year Ended September 30,

 

 

 

2021

 

 

2020

 

 

2019

 

Warranties, beginning of period

 

$

18,972

 

 

$

27,309

 

 

$

20,130

 

Impact from adoption of ASC 606

 

 

—

 

 

 

—

 

 

 

705

 

Expense, net of recoveries

 

 

1,164

 

 

 

8,687

 

 

 

14,559

 

Reductions for settling warranties

 

 

(2,718

)

 

 

(17,422

)

 

 

(7,540

)

Foreign currency exchange rate changes

 

 

63

 

 

 

398

 

 

 

(545

)

Warranties, end of period

 

$

17,481

 

 

$

18,972

 

 

$

27,309

 

Restructuring charges

In fiscal year 2021, the Company recognized restructuring charges consisting of workforce management costs to align the Company’s hydraulics and engine systems businesses with current market conditions.  Restructuring charges of $5,008 were recorded during the fiscal year ended September 30, 2021 as nonsegment expenses, the majority of which are expected to be paid within twelve months.

In fiscal year 2020, the Company committed to a plan of termination (the “Termination Plan”), as well as other cost savings actions, 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 and other related actions, the Company incurred $23,673 of restructuring charges for employee severance and benefits costs as of September 30, 2020, with the majority of the cash expenditures being paid by September 30, 2020.  All of the restructuring charges recorded during the fiscal year ended September 30, 2020 were recorded as nonsegment expenses and were paid as of September 30, 2021.

The summary of activity in accrued restructuring charges during the fiscal years ended September 30, 2021 and September 30, 2020 is as follows:

 

 

 

 

 

 

Period Activity

 

 

 

 

 

 

 

Balances

as of

September 30,

2020

 

 

Charges

 

 

Payments

 

 

Foreign currency exchange rate changes

 

 

Non-cash

activity

 

 

Balances

as of

September 30,

2021

 

Workforce management costs associated with:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics Systems Realignment

 

$

—

 

 

$

3,758

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

3,758

 

Engine Systems Realignment

 

 

—

 

 

 

1,250

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,250

 

COVID-19 pandemic

 

 

3,395

 

 

 

—

 

 

 

(2,409

)

 

 

180

 

 

 

(1,166

)

 

 

—

 

Total

 

$

3,395

 

 

$

5,008

 

 

$

(2,409

)

 

$

180

 

 

$

(1,166

)

 

$

5,008

 

 

 

Other liabilities included $513 of accrued restructuring charges that are not expected to be settled or paid within twelve months as of September 30, 2021.

 

 

 

 

 

 

 

 

Period Activity

 

 

 

 

 

 

 

Balances

as of

September 30,

2019

 

 

Charges

 

 

Payments

 

 

Foreign currency exchange rate changes

 

 

Non-cash

activity

 

 

Balances

as of

September 30,

2020

 

Workforce management costs associated with:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Duarte plant relocation

 

$

440

 

 

$

—

 

 

$

(440

)

 

$

—

 

 

$

—

 

 

$

—

 

Industrial turbomachinery business realignment

 

 

67

 

 

 

—

 

 

 

(67

)

 

 

—

 

 

 

—

 

 

 

—

 

COVID-19 pandemic

 

 

—

 

 

 

23,673

 

 

 

(18,065

)

 

 

77

 

 

 

(2,290

)

 

 

3,395

 

Total

 

$

507

 

 

$

23,673

 

 

$

(18,572

)

 

$

77

 

 

$

(2,290

)

 

$

3,395