Segment Information

12 Months Ended

Sep. 30, 2022

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,
	2022			2021			2020
Segment external net sales:
Aerospace	$	1,519,322		$	1,404,117		$	1,590,963
Industrial		863,468			841,715			904,702
Total consolidated net sales	$	2,382,790		$	2,245,832		$	2,495,665
Segment earnings:
Aerospace	$	230,933		$	234,356		$	310,137
Industrial		82,788			108,672			100,321
Nonsegment expenses		(81,092	)		(64,442	)		(94,530	)
Interest Expense, net		(32,731	)		(32,787	)		(34,047	)
Consolidated earnings before income taxes	$	199,898		$	245,799		$	281,881

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,
	2022		2021		2020
Segment assets:
Aerospace	$	1,773,854	$	1,698,833	$	1,752,516
Industrial		1,380,446		1,453,423		1,529,411
Unallocated corporate property, plant and equipment, net		111,760		106,014		106,380
Other unallocated assets		540,386		832,734		515,029
Consolidated total assets	$	3,806,446	$	4,091,004	$	3,903,336
Segment depreciation and amortization:
Aerospace	$	60,176	$	62,075	$	63,530
Industrial		50,584		56,885		57,444
Unallocated corporate amounts		9,868		10,564		10,184
Consolidated depreciation and amortization	$	120,628	$	129,524	$	131,158
Segment capital expenditures:
Aerospace	$	23,253	$	17,303	$	26,148
Industrial		12,399		15,164		10,631
Unallocated corporate amounts		17,216		5,222		10,308
Consolidated capital expenditures	$	52,868	$	37,689	$	47,087

Sales to Raytheon Technologies were made by Woodward’s Aerospace segment and totaled approximately 11% of net sales in fiscal year 2022, 9% of net sales in fiscal years 2021 and 2020. Sales to GE were made by both of Woodward’s reportable segments and totaled approximately 11% of net sales in fiscal year 2022, 2021, and 2020.  

Accounts receivable from Raytheon Technologies totaled approximately 6% of accounts receivable at September 30, 2022 and 5% of accounts receivable at September 30, 2021. Accounts receivable from GE totaled approximately 10% of accounts receivable at September 30, 2022 and September 30, 2021.  

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, 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	%
Fiscal year ended September 30, 2020
Aerospace	$	149,416		$	536,424		$	685,840
Industrial		5,867			17,473			23,340
Total net external sales	$	155,283		$	553,897		$	709,180
Percentage of total net sales		6	%		22	%		28	%