Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Jan. 23, 2017 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | WOODWARD, INC. | |
Entity Central Index Key | 108,312 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 61,439,846 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Earnings | ||
Net sales | $ 442,894 | $ 445,110 |
Costs and expenses: | ||
Cost of goods sold | 327,194 | 333,377 |
Selling, general and administrative expenses | 33,796 | 40,782 |
Research and development costs | 26,540 | 31,597 |
Amortization of intangible assets | 6,458 | 6,946 |
Interest expense | 6,840 | 6,908 |
Interest income | (405) | (447) |
Other (income) expense, net (Note 15) | (4,588) | (2,009) |
Total costs and expenses | 395,835 | 417,154 |
Earnings before income taxes | 47,059 | 27,956 |
Income tax expense | 511 | 2,136 |
Net earnings | $ 46,548 | $ 25,820 |
Earnings per share (Note 3): | ||
Basic earnings per share | $ 0.76 | $ 0.41 |
Diluted earnings per share | $ 0.73 | $ 0.40 |
Weighted Average Common Shares Outstanding (Note 3): | ||
Basic | 61,559 | 63,054 |
Diluted | 63,671 | 64,452 |
Cash dividends per share paid to Woodward common stockholders | $ 0.11 | $ 0.10 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Comprehensive earnings | ||
Net earnings | $ 46,548 | $ 25,820 |
Other comprehensive earnings: | ||
Foreign currency translation adjustments | (18,635) | (10,254) |
Gain on foreign currency transactions designated as hedges of net investments in a foreign subsidiaries | 3,830 | 862 |
Taxes on changes in foreign currency translation adjustments | (306) | 306 |
Foreign currency translation and transactions adjustments, net of tax | (15,111) | (9,086) |
Reclassification of net realized (gains) losses on derivatives to earnings | (18) | 29 |
Taxes on changes in derivative transactions | 7 | (11) |
Derivative adjustments, net of tax | (11) | 18 |
Minimum retirement benefit liability adjustments: | ||
Amortization of net prior service cost (benefit) | 56 | 56 |
Amortization of net loss | 641 | 427 |
Foreign currency exchange rate changes on minimum retirement benefit liabilities | 1,255 | 284 |
Taxes on changes on minimum retirement benefit liability adjustments, net of foreign currency exchange rate changes | (693) | (286) |
Pension and other postretirement benefit plan adjustments, net of tax | 1,259 | 481 |
Total comprehensive earnings | $ 32,685 | $ 17,233 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 80,885 | $ 81,090 |
Accounts receivable, less allowance for uncollectible amounts of $2,641 and $2,540, respectively | 252,761 | 343,768 |
Inventories | 493,764 | 461,683 |
Income taxes receivable | 23,129 | 20,358 |
Other current assets | 34,257 | 37,525 |
Total current assets | 884,796 | 944,424 |
Property, plant and equipment, net | 877,077 | 876,350 |
Goodwill | 553,300 | 555,684 |
Intangible assets, net | 190,933 | 197,650 |
Deferred income tax assets | 18,963 | 20,194 |
Other assets | 51,146 | 48,060 |
Total assets | 2,576,215 | 2,642,362 |
Current liabilities: | ||
Short-term borrowings and current portion of long-term debt | 150,000 | 150,000 |
Accounts payable | 149,280 | 169,439 |
Income taxes payable | 1,374 | 4,547 |
Accrued liabilities | 115,823 | 156,627 |
Total current liabilities | 416,477 | 480,613 |
Long-term debt, less current portion | 569,878 | 577,153 |
Deferred income tax liabilities | 9,063 | 3,777 |
Other liabilities | 358,429 | 368,224 |
Total liabilities | 1,353,847 | 1,429,767 |
Commitments and contingencies (Note 19) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.003 per share, 10,000 shares authorized, no shares issued | 0 | 0 |
Common stock, par value $0.001455 per share, 150,000 shares authorized, 72,960 shares issued | 106 | 106 |
Additional paid-in capital | 142,664 | 141,570 |
Accumulated other comprehensive losses | (79,568) | (65,705) |
Deferred compensation | 6,889 | 5,089 |
Retained earnings | 1,689,275 | 1,649,506 |
Stockholders' equity excluding treasury stock | 1,759,366 | 1,730,566 |
Treasury stock at cost, 11,559 shares and 11,374 shares, respectively | (530,109) | (512,882) |
Treasury stock held for deferred compensation, at cost, 183 shares and 157 shares, respectively | (6,889) | (5,089) |
Total Stockholders' Equity | 1,222,368 | 1,212,595 |
Total liabilities and stockholders' equity | $ 2,576,215 | $ 2,642,362 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Current assets: | ||
Allowance, accounts receivable | $ 2,641 | $ 2,540 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.003 | $ 0.003 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001455 | $ 0.001455 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 72,960,000 | 72,960,000 |
Treasury stock, shares | 11,374,000 | 11,374,000 |
Treasury stock held for deferred compensation, shares | 157,000 | 157,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 46,548 | $ 25,820 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 18,913 | 17,062 |
Net (gain) loss on sales of assets | (3,699) | (1,602) |
Stock-based compensation | 1,261 | 8,451 |
Deferred income taxes | 4,777 | 9,768 |
(Gain) loss on derivatives reclassified from accumulated comprehensive earnings into earnings | (18) | 29 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 87,615 | 74,717 |
Inventories | (37,632) | (25,091) |
Accounts payable and accrued liabilities | (54,563) | (56,816) |
Current income taxes | (5,731) | (10,517) |
Retirement benefit obligations | (897) | (874) |
Other | (4,223) | (3,587) |
Net cash provided by operating activities | 52,351 | 37,360 |
Cash flows from investing activities: | ||
Payments for purchase of property, plant and equipment | (21,058) | (33,131) |
Net proceeds from sale of assets | 3,682 | 1,852 |
Proceeds from sales of short-term investments | 758 | 0 |
Net cash used in investing activities | (16,618) | (31,279) |
Cash flows from financing activities: | ||
Cash dividends paid | (6,779) | (6,321) |
Proceeds from sales of treasury stock | 4,843 | 1,252 |
Payments for repurchases of common stock | (24,004) | (30,712) |
Borrowings on revolving lines of credit and short-term borrowings | 316,650 | 220,000 |
Payments on revolving lines of credit and short-term borrowings | (312,800) | (135,598) |
Payments of long-term debt and capital lease obligations | (102) | (50,000) |
Net cash provided by (used in) financing activities | (22,192) | (1,379) |
Effect of exchange rate changes on cash and cash equivalents | (13,746) | (2,482) |
Net change in cash and cash equivalents | (205) | 2,220 |
Cash and cash equivalents at beginning of year | 81,090 | 82,202 |
Cash and cash equivalents at end of period | $ 80,885 | $ 84,422 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total stockholders equity | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Total Accumulated Other Comprehensive (Loss) Earnings [Member] | Foreign Currency Translation Adjustments [Member] | Unrealized Derivative Gains (Losses) [Member] | Minimum Retirement Benefit Liability Adjustments [Member] | Deferred Compensation in Equity [Member] | Retained Earnings [Member] | Treasury Stock at Cost [Member] | Treasury Stock Held for Deferred Compensaton [Member] | Total |
Balances at Sep. 30, 2015 | $ 1,153,104 | $ 106 | $ 131,231 | $ (51,458) | $ (21,610) | $ 166 | $ (30,014) | $ 4,322 | $ 1,495,274 | $ (422,049) | $ (4,322) | ||
Balance, Preferred Stock, shares at Sep. 30, 2015 | 0 | ||||||||||||
Balance, Common Stock, shares at Sep. 30, 2015 | 72,960,000 | ||||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2015 | (9,763,000) | ||||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2015 | (173,000) | ||||||||||||
Net earnings | 25,820 | 25,820 | $ 25,820 | ||||||||||
Other comprehensive income (loss), net of tax | (8,587) | (8,587) | (9,086) | 18 | 481 | ||||||||
Cash dividends paid | (6,321) | (6,321) | |||||||||||
Purchases of treasury stock | (30,712) | $ (30,712) | |||||||||||
Purchases of treasury stock, shares | (624,000) | ||||||||||||
Sales of treasury stock | 1,252 | (406) | $ 1,658 | ||||||||||
Sales of treasury stock, shares | 49,000 | ||||||||||||
Common shares issued from treasury stock to settle employee liabilities | 0 | ||||||||||||
Stock-based compensation | 8,451 | 8,451 | |||||||||||
Purchases of stock by deferred compensation plan | 1,027 | $ (1,027) | |||||||||||
Purchases of stock by deferred compensation plan, shares | (21,000) | ||||||||||||
Distribution of stock from deferred compensation plan | (4) | $ 4 | |||||||||||
Distribution of stock from deferred compensation plan, shares | (1,000) | ||||||||||||
Balances at Dec. 31, 2015 | 1,143,007 | $ 106 | 139,276 | (60,045) | (30,696) | 184 | (29,533) | 5,345 | 1,514,773 | $ (451,103) | $ (5,345) | ||
Balance, Preferred Stock, shares at Dec. 31, 2015 | 0 | ||||||||||||
Balance, Common Stock, shares at Dec. 31, 2015 | 72,960,000 | ||||||||||||
Balance, Treasury Stock, shares at Dec. 31, 2015 | (10,338,000) | ||||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Dec. 31, 2015 | (195,000) | ||||||||||||
Balances at Sep. 30, 2016 | 1,212,595 | $ 106 | 141,570 | (65,705) | (25,971) | 179 | (39,913) | 5,089 | 1,649,506 | $ (512,882) | $ (5,089) | $ 1,212,595 | |
Balance, Preferred Stock, shares at Sep. 30, 2016 | 0 | 0 | |||||||||||
Balance, Common Stock, shares at Sep. 30, 2016 | 72,960,000 | 72,960,000 | |||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2016 | (11,374,000) | (11,374,000) | |||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Sep. 30, 2016 | (157,000) | (157,000) | |||||||||||
Net earnings | 46,548 | 46,548 | $ 46,548 | ||||||||||
Other comprehensive income (loss), net of tax | (13,863) | (13,863) | (15,111) | (11) | 1,259 | ||||||||
Cash dividends paid | (6,779) | (6,779) | |||||||||||
Purchases of treasury stock | (24,004) | $ (24,004) | |||||||||||
Purchases of treasury stock, shares | (350,000) | ||||||||||||
Sales of treasury stock | 4,843 | (907) | $ 5,750 | ||||||||||
Sales of treasury stock, shares | 139,000 | ||||||||||||
Common shares issued from treasury stock to settle employee liabilities | 1,767 | 740 | 1,767 | $ 1,027 | $ (1,767) | 1,767 | |||||||
Common shares issued from treasury stock to settle employee liabilities, shares | 26,000 | (26,000) | |||||||||||
Stock-based compensation | 1,261 | 1,261 | |||||||||||
Purchases of stock by deferred compensation plan | 37 | $ (37) | |||||||||||
Distribution of stock from deferred compensation plan | (4) | $ 4 | |||||||||||
Distribution of stock from deferred compensation plan, shares | 0 | ||||||||||||
Balances at Dec. 31, 2016 | $ 1,222,368 | $ 106 | $ 142,664 | $ (79,568) | $ (41,082) | $ 168 | $ (38,654) | $ 6,889 | $ 1,689,275 | $ (530,109) | $ (6,889) | $ 1,222,368 | |
Balance, Preferred Stock, shares at Dec. 31, 2016 | 0 | 0 | |||||||||||
Balance, Common Stock, shares at Dec. 31, 2016 | 72,960,000 | 72,960,000 | |||||||||||
Balance, Treasury Stock, shares at Dec. 31, 2016 | (11,559,000) | (11,374,000) | |||||||||||
Balance, Treasury stock held for deferred compensation, Shares at Dec. 31, 2016 | (183,000) | (157,000) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Stockholders Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.11 | $ 0.10 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2016 | |
Basis of Presentation | |
Basis of Presentation | WOODWARD, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In thousands, except per share amounts) (Unaudited) Note 1. Basis of presentation The Condensed Consolidated Financial Statements of Woodward, Inc. (“Woodward” or the “Company”) as of December 31, 2016 and for the three-months ended December 31, 2016 and December 31, 2015, included herein, have not been audited by an independent registered public accounting firm. These Condensed Consolidated Financial Statements reflect all normal recurring adjustments that, in the opinion of management, are necessary to present fairly Woodward’s financial position as of December 31, 2016, and the statements of earnings, comprehensive earnings, cash flows, and changes in stockholders’ equity for the periods presented herein. The results of operations for the three-months ended December 31, 2016 are not necessarily indicative of the operating results to be expected for other interim periods or for the full fiscal year. Dollar and share amounts contained in these Condensed Consolidated Financial Statements are in thousands, except per share amounts. The Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in Woodward’s most recent Annual Report on Form 10-K filed with the SEC and other financial information filed with the SEC. Management is required to use estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures, in the preparation of the Condensed Consolidated Financial Statements included herein. Significant estimates in these Condensed Consolidated Financial Statements include allowances for uncollectible amounts, net realizable value of inventories, customer rebates earned and payable, warranty reserves, useful lives of property and identifiable intangible assets, the evaluation of impairments of property, the provision for income tax and related valuation reserves, assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans, the valuation of stock compensation instruments granted to employees and board members, and contingencies. Actual results could vary from Woodward’s estimates. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Dec. 31, 2016 | |
Recent Accounting Pronouncements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 2. New accounting standards From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”). In October 2016, the FASB issued ASU 2016-16, “Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory.” ASU 2016-16 eliminates the current U.S. GAAP exception deferring the tax effects of intercompany asset transfers (other than inventory) until the transferred asset is sold to a third party or otherwise recovered through use. After adoption of ASU 2016-16, Woodward will recognize the tax consequences of intercompany asset transfers in the buyer’s and seller’s tax jurisdictions when the transfer occurs, even though the pre-tax effects of these transactions are eliminated in consolidation. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017 (fiscal year 2019 for Woodward), including interim periods within the year of adoption. Early adoption is allowed only in the first quarter of fiscal year 2017 or the first quarter of fiscal year 2018. Modified retrospective adoption is required with any cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. Woodward is currently assessing the impact this guidance may have on its Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Los ses on Financial Instruments.” ASU 2016-13 adds a current expected credit loss (“CECL”) impairment model to U.S. GAAP that is based on expected losses rather than incurred losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 (fiscal year 2021 for Woodward), including interim periods within the year of adoption. Early adoption is permitted for fiscal years beginning after December 15, 2018 (fiscal year 2020 for Woodward), including interim periods within those fiscal years. Woodward has not determined in which period it will adopt the new guidance but does not expect the application of the CECL impairment model to have a significant impact on Woodward’s allowance for uncollectible amounts for accounts receivable and notes receivable from municipalities. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The purpose of ASU 2016-02 is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (fiscal year 2020 for Woodward), including interim periods within the year of adoption. In transition, Woodward will be required to recognize and measure leases beginning in the earliest period presented using a modified retrospective approach; therefore, Woodward anticipates restating its Consolidated Financial Statements for the two fiscal years prior to the year of adoption. Early adoption is permitted. Woodward has not determined in which period it will adopt the new guidance and is currently assessing the impact this guidance may have on its Consolidated Financial Statements, including which of its existing operating leases will be impacted by the new guidance. Rent expense for all operating leases in fiscal year 2016, none of which was recognized on the balance sheet , was $7,359 . As of September 30, 2016, f uture minimum rental payments required under operating leases, none of which were recognized on the balance sheet, were $15,612 . In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” and has subsequently issued several supplemental and/or clarifying ASUs (collectively “ASC 606”). ASC 606 prescribes a single common revenue standard that replaces most existing U.S. GAAP revenue recognition guidance. ASC 606 outlines a five-step model, under which Woodward will recognize revenue as performance obligations within a c ustomer contract are satisfied. ASC 606 is intended to provide more consistent interpretation and application of the principles outlined in the standard across filers in multiple industries and within the same industries compared to current practices, whic h should improve comparability. Adoption of ASC 606 is required for annual reporting periods beginning after December 15, 2017 (fiscal year 2019 for Woodward), including interim perio ds within the reporting period. Woodward may elect to adopt ASC 606 in fiscal year 2018 , but does not expect to do so. Upon adoption, Woodward must elect to adopt either retrospectively to each prior reporting period presented or using the cumulative effect transition method with the cumulative effect of initial adoption recognized at t he date of initial application. Woodward has not determined what transition method it will use. Woodward is currently assessing the impact that the future adoption of ASC 606 may have on its Consolidated Financial Statements by analyzing its current portfolio of customer contracts, including a review of historical accounting policies and practices to identify potential differences in applying the guidance of ASC 606. Based on Woodward’s preliminary review of its customer contracts, Woodward expects that revenue on the majority of its customer contracts will continue to be recognized at a point in time, generally upon shipment of products, consistent with Woodward’s current revenue recognition model. Upon adoption of ASC 606, however, Woodward also believes some of its revenue s from sales of products and services to customers will be recognized over time, rather than at a point in time, due to the terms of certain customer contracts . Related to recognizing some revenue over time, inventory levels and accounts receivable balances will be impacted . As such, Woodward believes the adoption of ASC 606 may have an impact on both the timing of revenue recognition and various line items within the Consolidated Balance Sheet. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share | |
Earnings Per Share | Note 3. Earnings per share Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options and restricted stock. The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share: Three-Months Ended December 31, 2016 2015 Numerator: Net earnings $ 46,548 $ 25,820 Denominator: Basic shares outstanding 61,559 63,054 Dilutive effect of stock options and restricted stock 2,112 1,398 Diluted shares outstanding 63,671 64,452 Income per common share: Basic earnings per share $ 0.76 $ 0.41 Diluted earnings per share $ 0.73 $ 0.40 There were no stock option grants outstanding during the three-months ended December 3 1 , 2016 or 2015 that were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive . The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following: Three-Months Ended December 31, 2016 2015 Weighted-average treasury stock shares held for deferred compensation obligations 170 184 |
Joint Venture
Joint Venture | 3 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture | Note 4. Joint venture On January 4, 2016, Woodward and General Electric Company (“GE”), acting through its GE Aviation business unit, consummated the formation of a strategic joint venture between Woodward and GE (the “JV”). The JV designs, develops and sources the fuel system for specified existing and all future GE commercial aircraft engines that produce thrust in excess of fifty thousand pounds. As part of the JV formation, Woodward contributed to the JV certain contractual rights and intellectual property applicable to the existing GE commercial aircraft engine programs within the scope of the JV. Woodward has no initial cost basis in the JV because Woodward had no cost basis in the contractual rights and intellectual property contributed to the JV. GE purchased from Woodward a 50% ownership interest in the JV for a $250,000 cash payment to Woodward. In addition, GE will pay contingent consideration to Woodward consisting of fifteen annual payments of $4,894 per year beginning January 4, 2017 subject to certain claw-back conditions. Neither Woodward nor GE contributed any tangible assets to the JV. Woodward determined that the JV formation was not the culmination of an earnings event because Woodward has significant performance obligations to support the future operations of the JV. Therefore, Woodward recorded the $250,000 consideration received from GE , in January of 2016, for its purchase of a 50% equity interest in the JV as deferred income. The $250,000 deferred income will be recognized as an increase to net sales in proportion to revenue realized on sales of applicable fuel systems within the scope of the JV in a particular period as a percentage of total revenue expected to be realized by Woodward over the estimated remaining lives of the underlying commercial aircraft engine programs assigned to the JV. Unamortized deferred income realized upon the JV formation included accrued liabilities o f $6,452 as of December 31, 2016 and $6,552 as of September 30, 2016 , and other liabilities of $236,791 as of December 31, 2016 and $238,187 as of September 30, 2016. Amortization of the deferred income recognized as an increase to sales was $1,496 for the three-months ended December 31, 2016. Woodward and GE jointly manage the JV and any significant decisions and/or actions of the JV require the mutual consent of both parties. Neither Woodward nor GE has a controlling financial interest in the JV, but both Woodward and GE do have the ability to significantly influence the operating and financial decisions of the JV. Therefore, Woodward is accounting for its 50% ownership interest in the JV using the equity method of accounting. The JV is a related party to Woodward. Other income includes $68 4 for the three -months ended December 3 1 , 2016 related to Woodward’s equity interest in the earnings of the JV. During the three -months ended December 31 , 2016, Woodward received no cash distributions from the JV . Woodward’s net investment in the JV , which is included in other assets, was $6,888 as of December 3 1 , 2016. During the three -months ended December 3 1 , 2016, Woodward ’s n et sales include $15,302 of sales to the JV and a reduction to sales of $5,403 related to royalties paid to the JV by Woodward on sales by Woodward directly to third party aftermarket customers. The Condensed Consolidated Balance Sheets , included “Accounts receivable” of $5,145 a t December 3 1, 2016 and $5,326 at September 30, 2016 related to amounts the JV owed Woodward , and included “Accounts payable” of $5,012 at December 31, 2016 and $3,926 at September 30, 2016 related to amounts Woodward owed the JV. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Dec. 31, 2016 | |
Financial Instruments and Fair Value Measurments | |
Financial Instruments and Fair Value Measurements | Note 5. Financial instruments and fair value measurements Financial assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are categorized based upon a fair value hierarchy established by U.S. GAAP, which prioritizes the inputs used to measure fair value into the following levels: Level 1: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. Level 2: Quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data. Level 3: Inputs that reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. The table below presents information about Woodward’s financial assets that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value. Woodward had no financial liabilities required to be measured at fair value on a recurring basis as of December 3 1 , 2016 or September 30, 201 6 . At December 31, 2016 At September 30, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Cash $ 71,894 $ - $ - $ 71,894 $ 80,959 $ - $ - $ 80,959 Investments in money market funds - - - - 48 - - 48 Investments in reverse repurchase agreements 313 - - 313 83 - - 83 Investments in term deposits with foreign banks 8,678 - - 8,678 7,136 - - 7,136 Equity securities 14,603 - - 14,603 12,491 - - 12,491 Total financial assets $ 95,488 $ - $ - $ 95,488 $ 100,717 $ - $ - $ 100,717 Investments in money market funds: Woodward sometimes invests excess cash in money market funds not insured by the Federal Depository Insurance Corporation (“FDIC”). Woodward believes that the investments in money market funds are on deposit with creditworthy financial institutions and that the funds are highly liquid. The investments in money market funds are reported in “Cash and cash equivalents” at fair value, with realized gains from interest income recognized in earnings . The fair values of Woodward’s investments in money market funds are based on the quoted market prices for the net asset value of the various money market funds. Investments in reverse repurchase agreements: Woodward sometimes invests excess cash in reverse repurchase agreements. Under the terms of Woodward’s reverse repurchase agreements, Woodward purchases an interest in a pool of securities and is granted a security interest in those securities by the counterparty to the reverse repurchase agreement. At an agreed upon date, generally the next business day, the counterparty repurchases Woodward’s interest in the pool of securities at a price equal to what Woodward paid to the counterparty plus a rate of return determined daily per the terms of the reverse repurchase agreement. Woodward believes that the investments in these reverse repurchase agreements are with creditworthy financial institutions and that the funds invested are highly liquid. The investments in reverse repurchase agreements are reported at fair value, with realized gains from interest income recognized in earnings, and are included in “Cash and cash equivalents.” Since the investments are generally overnight, the carrying value is considered to be equal to the fair value as the amount is deemed to be a cash deposit with no risk of change in value as of the end of each fiscal quarter. Investments in term deposits with foreign banks : Woodward ’s foreign subsidiaries sometimes invest excess cash in various highly liquid financial instruments that Woodward believes are wit h creditworthy financial institutions. Such investments are reported in “Cash and cash equivalents” at fair value, with realized gains from inter est income recognized in earnings. The carrying value of Woodward’s investments in term deposits with foreign banks are considered equal to the fair value given the highly liquid nature of the investments . Equity securities: Woodward holds marketable equity securities, through investments in various mutual funds, related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net.” The trading securities are included in “Other assets.” The fair values of Woodward’s trading securities are based on the quoted market prices for the net asset value of the various mutual funds. Accounts receivable, accounts payable, the current portion of long-term debt, and short-term debt are not remeasured to fair value, as the carrying cost of each approximates its respective fair value. The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Condensed Consolidated Balance Sheets were as follows: At December 31, 2016 At September 30, 2016 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 $ 16,201 $ 15,229 $ 17,501 $ 15,849 Investments in short-term time deposits 2 4,065 4,084 4,882 4,918 Liabilities: Short-term borrowings 2 (150,000) (150,000) (150,000) (150,000) Long-term debt, excluding current portion 2 $ (590,556) $ (571,852) $ (617,857) $ (579,244) In fiscal years 2014 and 2013, Woodward received lon g-term notes from municipalities within the state s of Illinois and Colorado in connection with certain economic incentives related to Woodward’s development of a second campus in the greater-Rockford, Illinois area for its Aerospace segment and Woodward’s development of a new campus at its corporate headquarters in Fort Collins, Colorado. The fair value of the long-term notes was estimated based on a model that discounted future principal and interest payments received at an interest rate available to the Company at the end of the period for similarly rated municipal notes of similar maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the long-term notes were 2.9 % at December 31, 2016 and 2.2% at September 30, 2016. From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. The fair value of the investments in short-term time deposits was estimated based on a model that discounted future principal and interest payments to be received at an interest rate available to the foreign subsidiary entering into the investment fo r similar short-term time deposits of similar maturity. This is determined to be a level 2 input as defined by the U.S. GAAP fair valu e hierarchy. The interest rate used to estimate the fair value of the short-term time deposits was 6.6% at December 31, 2016 and 6.9 % at September 30, 2016 . The fair value of long-term debt was estimated based on a model that discounted future principal and interest payments at interest rates available to the Company at the end of the period for similar debt of the same maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The weighted-average interest rates used to estimate the fair value of long-term debt were 2.4 % at December 31, 2016 and 1.9% at September 30, 2016 . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 6. Derivative instruments and hedging activities Woodward has exposures related to global market risks, including the effect of changes in interest rates, foreign currency exchange rates, changes in certain commodity prices and fluctuations in various producer indices. From time to time, Woodward enters into derivative instruments for risk management purposes only, including derivatives designated as accounting hedges and/or those utilized as economic hedges. Woodward uses interest rate related derivative instruments to manage its exposure to fluctuations of interest rates. Woodward does not enter into or issue derivatives for trading or speculative purposes. By using derivative and/or hedging instruments to manage its risk exposure, Woodward is subject, from time to time, to credit risk and market risk on those derivative instruments. Credit risk arises from the potential failure of the counterparty to perform under the terms of the derivative and/or hedging instrument. When the fair value of a derivative contract is positive, the counterparty owes Woodward, which creates credit risk for Woodward. Woodward mitigates this credit risk by entering into transactions with only creditworthy counterparties. Market risk arises from the potential adverse effects on the value of derivative and/or hedging instruments that result from a change in interest rates, commodity prices, or foreign currency exchange rates. Woodward minimizes this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. Woodward did not enter into any derivatives or hedging transactions during the three-months ended December 31, 2016. The remaining unrecognized gains and losses in Woodward’s Condensed Consolidated Balance Sheets associated with derivative instruments that were previously entered into by Woodward, which are classified in accumulated other comprehensive ( losses ) earnings (“accumulated OCI”), were net gains of $27 2 as of December 3 1 , 2016 and $290 as of September 30, 2016 . The following table discloses the impact of derivative instruments in cash flow hedging relationships on Woodward’s Condensed Consolidated Statements of Earnings, recognized in interest expense: Three-Months Ended December 31, 2016 2015 Amount of (income) expense recognized in earnings on derivative $ (18) $ 29 Amount of (gain) loss recognized in accumulated OCI on derivative - - Amount of (gain) loss reclassified from accumulated OCI into earnings (18) 29 Based on the carrying value of the realized but unrecognized gains on terminated derivative instruments designated as cash flow hedges as of December 3 1 , 2016, Woodward expects to reclassify $ 72 of net unrecognized gains on terminated derivative instruments from accumulated other comprehensive (losses) earnings to earnings during the next twelve months. On September 23, 2016 , Woodward and Woodward International Holding B.V., a wholly owned subsidiary of Woodward organized under the laws of The Netherlands (the “BV Subsidiary”), each entered into a note purchase agreement (the “2016 Note Purchase Agreements”) relating to the sale by Woodward and the BV Subsidiary of an aggregate principal amount of €160,000 of senior unsecured notes in a series of private placement transactions. Woodward issued €40,000 aggregate principal amount of Woodward’s Series M Senior Notes due September 23, 2026. Woodward designated the €40,000 Series M Notes as a hedge of a foreign currency exposure of Woodward’s net investment in its Euro denominated functional currency subsidiaries. A foreign exchange gain on the Series M Notes of $2,814 for the three-months ended December 31, 2016 is included in foreign currency translation adjustments within total comprehensive (losses) earnings. In June 2015, Woodward designated an intercompany loan of 160,000 Renminbi (“ RMB ”) between two wholly owned subsidiaries as a hedge of a foreign currency exposure of the net investment of the borrower in the lender. Unrealized foreign exchange gains on the loan of $862 is included in foreign currency translation adjustments within total comprehensive earnings for the three-months ended December 31, 2015. In June 2016, the intercompany loan was repaid . In July 2016, Woodward designated a new intercompany loan of 160,000 RMB between two wholly owned subsidiaries as a hedge of a foreign currency exposure of the net investment of the borrower in the lender. Unrealized f oreign exchange gains on the loan of $1,016 for the three-months ended December 3 1 , 2016 are included in foreign currency translation adjustments within total comprehensive (losses) earnings. |
Supplemental Statements of Cash
Supplemental Statements of Cash Flows Information | 3 Months Ended |
Dec. 31, 2016 | |
Supplemental Statements of Cash Flows Information | |
Supplemental Statements of Cash Flows Information | Note 7. Supplemental statement of cash flows information Three-Months Ended December 31, 2016 2015 Interest paid, net of amounts capitalized $ 10,317 $ 14,878 Income taxes paid 6,047 3,667 Income tax refunds received 59 913 Non-cash activities: Purchases of property, plant and equipment on account 6,130 26,666 Common shares issued from treasury to settle employee liabilities 1,767 - |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2016 | |
Inventories | |
Inventories | Note 8 . Inventories December 31, September 30, 2016 2016 Raw materials $ 58,064 $ 54,246 Work in progress 111,908 109,756 Component parts (1) 269,456 249,307 Finished goods 54,336 48,374 $ 493,764 $ 461,683 (1) Component parts include items that can be sold separately as finished goods or included in the manufacture of other products. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 3 Months Ended |
Dec. 31, 2016 | |
Property, Plant, and Equipment, Net | |
Property, Plant and Equipment, Net | Note 9. Property, plant, and equipment December 31, September 30, 2016 2016 Land and land improvements $ 87,294 $ 87,696 Buildings and building improvements 525,710 527,704 Leasehold improvements 14,662 15,213 Machinery and production equipment 481,041 484,315 Computer equipment and software 122,418 117,984 Office furniture and equipment 29,133 29,344 Other 19,121 18,969 Construction in progress 92,516 88,909 1,371,895 1,370,134 Less accumulated depreciation (494,818) (493,784) Property, plant, and equipment, net $ 877,077 $ 876,350 I ncluded in “Office furniture and equipment” and “Other” is $1,653 at December 31, 2016 and September 30, 2016, of gross a ssets acquired on capital leases, and accumulated depreciation included $425 at December 31, 2016 and $322 at September 30, 2016 of amortization associated with the capital lease assets. In fiscal year 2015, Woodward completed and placed into service a manufacturing and office building on a second campus in the greater-Rockford, Illinois area and has occupied the new facility in anticipation of beginning serial production of new narrow-body product lines beginning in fiscal year 2017 for its Aerospace segment. This campus is intended to support Woodward’s expected growth in its Aerospace segment over the next ten years and beyond, required as a result of Woodward being awarded a substantial number of new system platforms, particularly on narrow-body aircraft. Included in “Construction in progress” are costs of $34,207 at December 3 1 , 201 6 and $26,741 at September 30, 2016 associated with new equipment purchases for the second campus. For the three-months ended December 3 1 , 2016 and 201 5 , Woodward had depreciation expense as follows: Three-Months Ended December 31, 2016 2015 Depreciation expense $ 12,455 $ 10,116 F or the three-months ended December 3 1 , 2016 and 201 5 , Woodward capitalized interest that would have otherwise been included in interest expense of the following: Three-Months Ended December 31, 2016 2015 Capitalized interest $ 472 $ 1,873 |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 2016 | |
Goodwill Disclosure | |
Goodwill | Note 1 0 . Goodwill September 30, 2016 Effects of Foreign Currency Translation December 31, 2016 Aerospace $ 455,423 $ - $ 455,423 Industrial 100,261 (2,384) 97,877 Consolidated $ 555,684 $ (2,384) $ 553,300 Woodward tests goodwill for impairment at the reporting unit level on an annual basis and more often if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Woodward completed its annual goodwill imp airment test as of July 31, 2016 during the quarter e nded September 30, 2016. Woodward determined it was appropriate to aggregate certain components of the same operating segment into a single reporting unit. The fair value of each of Woodward’s reporting units was determined using a discounted cash flow method. This method represents a level 3 input and incorporates various estimates and assumptions, the most significant being projected revenue growth rates, earnings margins, future tax rates, and the present value, based on an estimated weighted-average cost of capital (or the discount rate) and terminal growth rate, of forecasted cash flows. Management projects revenue growth rates, earnings margins and cash flows based on each reporting unit’s current operational results, expected performance and operational strategies over a ten-year period. These projections are adjusted to reflect current economic conditions and demand for certain products, and require considerable management judgment. Forecasted cash flows used in the July 31, 2016 impairment test were discounted using weighted-average cost of capital assumptions ranging from 8.91% to 11.49% . The terminal values of the forecasted cash flows were calculated using the Gordon Growth Model and assumed an annual compound growth rate after ten years of 3.71% . These inputs, which are unobservable in the market, represent management’s best estimate of what market participants would use in determining the present value of the Company’s forecasted cash flows. Changes in these estimates and assumptions can have a significant impact on the fair value of forecasted cash flows. Woodward evaluated the reasonableness of the reporting units’ resulting fair values utilizing a market multiple method. The results of Woodward’s goodwill impairment tests performed as of July 31, 2016 did not indicate impairment of any of Woodward’s reporting units. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Net | |
Intangible Assets, Net | Note 11 . Intangible assets, net December 31, 2016 September 30, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Customer relationships and contracts: Aerospace $ 282,225 $ (138,408) $ 143,817 $ 282,225 $ (134,158) $ 148,067 Industrial 40,693 (33,530) 7,163 40,969 (33,509) 7,460 Total $ 322,918 $ (171,938) $ 150,980 $ 323,194 $ (167,667) $ 155,527 Intellectual property: Aerospace $ - $ - $ - $ - $ - $ - Industrial 19,156 (17,734) 1,422 19,435 (17,876) 1,559 Total $ 19,156 $ (17,734) $ 1,422 $ 19,435 $ (17,876) $ 1,559 Process technology: Aerospace $ 76,605 $ (44,703) $ 31,902 $ 76,605 $ (43,229) $ 33,376 Industrial 22,596 (16,344) 6,252 22,965 (16,200) 6,765 Total $ 99,201 $ (61,047) $ 38,154 $ 99,570 $ (59,429) $ 40,141 Other intangibles: Aerospace $ - $ - $ - $ - $ - $ - Industrial 1,168 (791) 377 1,246 (823) 423 Total $ 1,168 $ (791) $ 377 $ 1,246 $ (823) $ 423 Total intangibles: Aerospace $ 358,830 $ (183,111) $ 175,719 $ 358,830 $ (177,387) $ 181,443 Industrial 83,613 (68,399) 15,214 84,615 (68,408) 16,207 Consolidated Total $ 442,443 $ (251,510) $ 190,933 $ 443,445 $ (245,795) $ 197,650 For the three-months ended December 31, 2016 and 2015, Woodward recorded amortization expense associated with intangibles of the following: Three-Months Ended December 31, 2016 2015 Amortization expense $ 6,458 $ 6,946 Future amortization expense associated with intangibles is expected to be: Year Ending September 30: 2017 (remaining) $ 19,279 2018 24,907 2019 23,071 2020 20,332 2021 18,393 Thereafter 84,951 $ 190,933 |
Credit Facilities, Short-term B
Credit Facilities, Short-term Borrowings and Long-term Debt | 3 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure | |
Credit Facilities, Short-term Borrowings and Long-term Debt | Note 12. Credit facilities, short-term borrowings and long-term debt Revolving credit facility Woodward maintains a $1,000,000 revolving credit facility established under a revolving credit agreement among Woodward, a syndicate of lenders and Wells Fargo Bank, National Association, as administrative agent (the “Revolving Credit Agreement”). The Revolving Credit Agreement provides for the option to increase available borrowings to up to $1,200,000 , subject to lenders’ participation. Borrowings under the Revolving Credit Agreement generally bear interest at LIBOR plus 0.85% to 1.65% . The Revolving Credit Agreement matures in April 2020 . Under the Revolving Credit Agreement, there were $160,550 in principal amount of borrowings outstanding as of December 3 1 , 2016, at an effective interest rate of 1.66% and $156,700 in principal amount of borrowings outstanding as of September 3 0 , 201 6 , at an effective interest rate of 1.77% . As of December 3 1 , 2016, $150,000 of the borrowings under the Revolving Credit Agreement were classified as short-term based on Woodward’s intent and ability to pay this amount in the next twelve months. Short-term borrowings As of December 31, 2016, a Chinese subsidiary of Woodward has a local uncommitted credit facility with the Hong Kong and Shanghai Banking Company under which it has the ability to borrow up to either $ 22,700 , or the local currency equivalent of $22,700 , up to the amount of a parent guarantee from Woodward. The Chinese subsidiary may utilize the local facility for cash borrowings to support its operating cash needs. Local currency borrowings on the Chinese credit facility are charged interest at the prevailing interest rate offered by the People’s Bank of China on the date of borrowing, plus a margin equal to 15% of that prevailing rate . U.S. dollar borrowings on the credit facility are charged interest at the lender’s cost of borrowing rate at the date of borrowing, plus 3% . The Chinese subsidiary had no outstanding cash borrowings against the local credit facility at December 31, 2016 and September 30, 2016. A s of December 31, 2016, the Brazilian s ubsidiary of Woodward had a local uncommitted credit facility with the Banco J.P . Morgan S.A. under which it had the ability to borrow up to 52,000 Brazilian Real. Any cash borrowings under the local Brazilian credit facility are secured by a parent guarantee from Woodward. The Brazilian subsidiary may utilize the local facility to support its operating cash needs. Local currency borrowings on the Brazilian credit facility are charged interest at the lender’s cost of borrowing rate at the date of borrowing, plus 1.75% . On January 5, 2017, the Brazilian subsidiary of Woodward entered into an amendment to the original credit facility to extend the maturity date until July 14, 2017 and decrease the maximum borrowing capacity to 1,000 Brazilian Real. The Brazilian subsidiary had no outstanding cash borrowings against the local credit facility at December 31, 2016 and September 30, 2016. Woodward also has other foreign lines of credit and foreign overdraft facilities at various financial institutions, which are generally reviewed annually for renewal and are subject to the usual terms and conditions applied by the financial institutions. Pursuant to the terms of the related facility agreements, Woodward’s foreign performance guarantee facilities are limited in use to providing performance guarantees to third parties. There were no borrowings outstanding as of December 31, 2016 and September 30, 2016 on Woodward’s other foreign lines of credit and foreign overdraft facilities. Long-term debt December 31, September 30, 2016 2016 Revolving credit facility - Floating rate (LIBOR plus 0.85% - 1.65% ), due April 2020 , unsecured $ 160,550 $ 156,700 Series D notes – 6.39%, due October 2018; unsecured 100,000 100,000 Series F notes – 8.24%, due April 2019; unsecured 43,000 43,000 Series G notes – 3.42%, due November 2020; unsecured 50,000 50,000 Series H notes – 4.03%, due November 2023; unsecured 25,000 25,000 Series I notes – 4.18%, due November 2025; unsecured 25,000 25,000 Series J notes – Floating rate (LIBOR plus 1.25%), due November 2020; unsecured 50,000 50,000 Series K notes – 4.03%, due November 2023; unsecured 50,000 50,000 Series L notes – 4.18%, due November 2025; unsecured 50,000 50,000 Series M notes – 1.12% due September 2026; unsecured 42,076 44,886 Series N notes – 1.31% due September 2028; unsecured 80,995 86,406 Series O notes – 1.57% due September 2031; unsecured 45,231 48,252 Total debt 721,852 729,244 Less: Current portion of long-term debt (150,000) (150,000) Unamortized debt issuance costs (1,974) (2,091) Long-term debt, less current portion $ 569,878 $ 577,153 The Notes In October 2008 , Woodward entered into a note purchase agreement relating to the Series D Notes (the “2008 Notes”). In April 2009 , Woodward entered into a note purchase agreement relating to the Series F Notes (the “2009 Notes”). On October 1, 2013 , Woodward entered into a note purchase agreement relating to the sale by Woodward of an aggregate principal amount of $250,000 of its senior unsecured notes in a series of pr ivate placement transactions. Woodward issued the Series G, H and I Notes (the “First Closing Notes”) on October 1, 2013 . Woodward issued the Series J, K and L Notes (the “Second Closing Notes” , and together with the 2008 Notes, 2009 Notes and the First Closing Notes, the “USD Notes”) on November 15, 2013 . On September 23, 2016 , Woodward and the BV Subsidiary each entered into note purchase agreements relating to the sale by Woodward and the BV Subsidiary of an aggregate principal amount of €160,000 of senior unsecured notes in a series of private placement transactions. Woodward issued €40,000 aggregate principal amount of Woodward’s Series M Senior Notes (the “Series M Notes”). The BV Subsidiary issued (a) €77,000 aggregate principal amount of the BV Subsidiary’s Series N Senior Notes (the “Series N Notes”) and (b) €43,000 aggregate principal amount of the BV Subsidiary’s Series O Senior Notes (the “Series O Notes” and together with the Series M Notes and the Series N Notes, the “2016 Notes”, and together with the USD Notes, collectively, the “Notes”). Interest on the 2008 Notes, the First Closing Notes, and the Series K and L Notes is payable semi-annually on April 1 and October 1 of each year until all principal is paid. Interest on the 2009 Notes is payable semi-annually on April 15 and October 15 of each year until all principal is paid. Interest on the 2016 Notes will be payable semi-annually on March 23 and September 23 of each year, commencing on March 23, 2017, until all principal is paid. Interest on the Series J Notes is payable quarterly on January 1, April 1, July 1 and October 1 of each year until al l principal is paid. As of December 3 1 , 2016, the Series J Notes bore interest at an effective rate of 2.16% . Debt Issuance Costs Unamortized debt issuance costs associated with the Notes of $1,974 as of December 31, 2016 and $2,091 as of September 30, 2016 were recorded as a reduction in “Long-term debt, less current portion” in the Condensed Consolidated Balance Sheets. Unamortized debt issuance costs of $2,915 associated with the Revolving Credit Agreement as of December 31, 2016 and $3,134 as of September 30, 2016 were recorded as “Other assets” in the Condensed Consolidated Balance Sheets. Amortization of debt issuance costs is included in operating activities in the Condensed Consolidated Statements of Cash Flows. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities | |
Accrued Liabilities | Note 1 3 . Accrued liabilities December 31, September 30, 2016 2016 Salaries and other member benefits $ 47,677 $ 87,197 Warranties 15,528 15,993 Interest payable 5,789 9,071 Current portion of acquired performance obligations and unfavorable contracts (1) 2,910 2,910 Accrued retirement benefits 2,503 2,505 Current portion of loss reserve on contractual lease commitments 1,840 1,840 Current portion of deferred income from JV formation (Note 4) 6,452 6,552 Deferred revenues 7,577 5,779 Taxes, other than income 9,289 14,580 Other 16,258 10,200 $ 115,823 $ 156,627 (1) In connection with Woodward’s acquisition of GE Aviation Systems LLC’s (the “Seller”) thrust reverser actuation systems business located in Duarte, California (the “Duarte Acquisition”) 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 and others, partially 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: Three-Months Ended December 31, 2016 2015 Warranties, beginning of period $ 15,993 $ 13,741 Expense, net of recoveries 1,923 3,236 Reductions for settling warranties (2,032) (3,469) Foreign currency exchange rate changes (356) (138) Warranties, end of period $ 15,528 $ 13,370 Loss reserve on contractual lease commitments In connection with the construction of a new production facility in Niles, Illinois, Woodward vacated a leased facility in Skokie, Illinois. During the first quarter of fiscal year 2016 Woodward fully vacated the Skokie facility and therefore recorded a charge of $8,165 to recognize a loss reserve against the estimated remaining contractual lease commitments, less anticipated sublease income. The summary for the activity in the loss reserve during the three -months ended December 3 1 , 2016 is as follows: Three-Months Ended December 31, 2016 2015 Loss reserve on contractual lease commitments, beginning of period $ 9,242 $ 2,464 Additions - 8,165 Payments (402) - Loss reserve on contractual lease commitments, end of period $ 8,840 $ 10,629 Other liabilities included $7,000 of accrued loss reserve on contractual lease commitments that are not expected to be settled or paid within twelve months as of December 3 1 , 2016. |
Other Liabilities
Other Liabilities | 3 Months Ended |
Dec. 31, 2016 | |
Other Liabilities | |
Other Liabilities | Note 14 . Other liabilities December 31, September 30, 2016 2016 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 70,549 $ 70,479 Noncurrent portion of deferred income from JV formation (1) 236,791 238,187 Total unrecognized tax benefits, net of offsetting adjustments (Note 16) 12,541 17,239 Acquired unfavorable contracts (2) 2,859 3,148 Deferred economic incentives (3) 15,685 16,196 Loss reserve on contractual lease commitments (4) 7,000 7,402 Other 13,004 15,573 $ 358,429 $ 368,224 (1) See Note 4, Joint venture for more information on the deferred income from JV formation. (2) In connection with the Duarte business acquisition in fiscal year 2013, Woodward assumed current and long-term performance obligations for contractual commitments that are expected to result in future economic losses. The long-term portion of the acquired unfavorable contracts is included in Other liabilities. (3) Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects. (4) See Note 13, Accrued liabilit i es for more information on the loss reserve on contractual lease commitments. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 3 Months Ended |
Dec. 31, 2016 | |
Other (Income) Expense, Net | |
Other (Income) Expense, Net | Note 15 . Other (income) expense, net Three-Months Ended December 31, 2016 2015 Equity interest in the earnings of the JV (Note 4) $ (684) $ - Net gain on sales of assets (3,699) (1,602) Rent income (73) (101) Net gains on investments in deferred compensation program (24) (304) Other (108) (2) $ (4,588) $ (2,009) |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income Taxes | Note 1 6 . Income taxes U.S. GAAP requires that the interim period tax provision be determined as follows: · At the end of each quarter, Woodward estimates the tax that will be provided for the current fiscal year stated as a percentage of estimated “ordinary income.” The term ordinary income refers to earnings from continuing operations before income taxes, excluding significant unusual or infrequently occurring items. The estimated annual effective rate is applied to the year-to-date ordinary income at the end of each quarter to compute the estimated year-to-date tax applicable to ordinary income. The tax expense or benefit related to ordinary income in each quarter is the difference between the most recent year-to-date and the prior quarter year-to-date computations. · The tax effects of significant unusual or infrequently occurring items are recognized as discrete items in the interim period in which the events occur. The impact of changes in tax laws or rates on deferred tax amounts, the effects of changes in judgment about beginning of the year valuation allowances, and changes in tax reserves resulting from the finalization of tax audits or reviews are examples of significant unusual or infrequently occurring items that are recognized as discrete items in the interim period in which the event occurs. The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income of Woodward in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, as a global commercial enterprise, Woodward’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, changes in the estimate of the amount of undistributed foreign earnings that Woodward considers indefinitely reinvested, and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. On December 7, 2016, the U.S. Treasury issued regulations under Internal Revenue Code Section 9 87 (“Section 987 Regulations”) which clarify how companies calculate foreign currency translation gains and losses for income tax purposes for branches whose accounting records are kept in a currency other than the currency of the company . The issuance of these Section 987 Regulations had no significant impact on Woodward’s Condensed Consolidated Financial Statements for the three months ended December 31, 2016. The following table sets forth the tax expense and the effective tax rate for Woodward’s earnings before income taxes: Three-Months Ended December 31, 2016 2015 Earnings before income taxes $ 47,059 $ 27,956 Income tax expense 511 2,136 Effective tax rate 1.1% 7.6% The decrease in the year-over-year effective tax rate for the three-months ended December 31, 2016 is primarily attributable to the impact in the quarter of the repatriation to the U.S. of certain net foreign profits and losses. The U.S. foreign tax credits available as a result of the repatriation of the foreign net earnings is greater than the U.S. taxes payable on these net foreign earnings. The excess U.S. foreign tax credits are expected to be used to offset U.S. taxes on other foreign source income. The decrease in the year-over-year effective tax rate caused by the repatriated earnings was partially offset by the retroactive benefit of the U.S. research and experimentation credit (“R&E credit”) pursuant to the December 18, 2015 enactment of the Protecting Americans from Tax Hikes (PATH) Act of 2015, which was included in the effective tax rate for the first quarter of fiscal year 2016 but did not repeat in the first quarter of fiscal year 2017. Gross unrecognized tax benefits were $18,579 as of December 31, 2016, and $23,526 as of September 30, 2016. Included in the balance of unrecognized tax benefits were $11,460 as of December 31, 2016 and $11,426 as of September 30, 2016 of tax benefits that, if recognized, would affect the effective tax rate. At this time, Woodward estimates that it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $3,373 in the next twelve months due to the completion of reviews by tax authorities , lapses of statutes, and the settlement of tax positions. Woodward accrues for potential interest and penalties related to unrecognized tax benefits and all other interest and penalties related to tax payments in tax expense. Woodward had accrued gross interest and penalties of $1,460 as of December 31, 2016 and $1,273 as of September 30, 2016. Woodward’s tax returns are subject to audits by U.S. federal, state, and foreign tax authorities, and these audits are at various stages of completion at any given time. Reviews of tax matters by authorities and lapses of the applicable statutes of limitations may result in changes to tax expense. Fiscal years remaining open to examination in significant foreign jurisdictions include 2008 and thereafter. Woodward’s fiscal years remaining open to examination in the United States include fiscal years 2013 and thereafter . Woodward is currently under examination by the Internal Revenue Service for fiscal year 2014 . Woodward has concluded U.S. federal income tax examinations through fiscal year 2012. Woodward is generally subject to U.S. state income tax examinations for fiscal years 2012 and the periods thereafter. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Dec. 31, 2016 | |
Retirement Benefits - General | |
Retirement Benefits | Note 1 7 . Retirement benefits Woodward provides various retirement benefits to eligible members of the Company, including contributions to various defined contribution plans, pension benefits associated with defined benefit plans, postretirement medical benefits and postretirement life insurance benefits. Eligibility requirements and benefit levels vary depending on employee location. Defined contribution plans Most of the Company’s U.S. employees are eligible to participate in the U.S. defined contribution plan. The U.S. defined contribution plan allows employees to defer part of their annual income for income tax purposes into their personal 401(k) accounts. The Company makes matching contributions to eligible employee accounts, which are also deferred for employee personal income tax purposes. Certain foreign employees are also eligible to participate in foreign plans. The amount of expense associated with defined contribution plans was as follows: Three-Months Ended December 31, 2016 2015 Company costs $ 7,249 $ 8,004 Defined benefit plans Woodward has defined benefit plans that provide pension benefits for certain retired employees in the United States, the United Kingdom, and Japan. Woodward also provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees and their covered dependents and beneficiaries in the United States and the United Kingdom. Life insurance benefits are provided to certain retirees in the United States under frozen plans, which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for all of Woodward’s defined benefit pension and other postretirement benefit plans. U.S. GAAP requires that, for obligations outstanding as of September 30, 2016, the funded status reported in interim periods shall be the same asset or liability recognized in the previous year end statement of financial position adjusted for (a) subsequent accruals of net periodic benefit cost that exclude the amortization of amounts previously recognized in other comprehensive income (for example, subsequent accruals of service cost, interest cost, and return on plan assets) and (b) contributions to a funded plan or benefit payments. During the third quarter of fiscal year 2016, Woodward opened a lump-sum buy-out window for certain former U.S. employees and/or their dependents eligible to receive postretirement defined benefit pension payments for past employment services to the Company. Eligible pension plan participants may elect to receive a one-time lump-sum payment or an immediate annuity in lieu of future pension benefit payments. Pension benefit payments paid from available pension plan assets under the lump-sum buy-out options were $ 670 during the first quarter of fiscal year 2017. Woodward expects to make no further pension benefit payments under the lump-sum buy-out options. The components of the net periodic retirement pension costs recognized are as follows: Three-Months Ended December 31, United States Other Countries Total 2016 2015 2016 2015 2016 2015 Service cost $ 419 $ 674 $ 192 $ 186 $ 611 $ 860 Interest cost 1,439 1,317 296 435 1,735 1,752 Expected return on plan assets (2,632) (2,542) (641) (697) (3,273) (3,239) Amortization of: Net actuarial loss 464 323 127 65 591 388 Prior service cost 96 96 - - 96 96 Net periodic retirement pension benefit $ (214) $ (132) $ (26) $ (11) $ (240) $ (143) Contributions paid $ - $ - $ 365 $ 389 $ 365 $ 389 The components of the net periodic other postretirement benefit costs recognized are as follows: Three-Months Ended December 31, 2016 2015 Service cost $ 4 $ 5 Interest cost 311 262 Amortization of: Net actuarial loss 50 39 Prior service benefit (40) (40) Net periodic other postretirement cost $ 325 $ 266 Contributions paid $ 615 $ 381 The amount of cash contributions made to these plans in any year is dependent upon a number of factors, including minimum funding requirements in the jurisdictions in which Woodward operates and arrangements made with trustees of certain foreign plans. As a result, the actual funding in fiscal year 2017 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2017 will be as follows: Retirement pension benefits: United States $ - United Kingdom 323 Japan - Other postretirement benefits 3,424 Multiemployer defined benefit plans Woodward operates two multiemployer defined benefit plans for certain employees in the Netherlands and Japan. The amounts of contributions associated with the multiemployer plans were as follows: Three-Months Ended December 31, 2016 2015 Company contributions $ 68 $ 130 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity and Stock-Based Compensation [Abstract] | |
Stockholders' Equity | Note 18 . Stockholders’ equity Stock repurchase program In the first quarter of fiscal year 2017, Woodward’s Board of Directors terminated the Company’s prior stock repurchase program and replaced it with a new program for the repurchase of up to $500,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three -year period that will end in 2019 (the “2016 Authorization”). Under the 2016 Authorization, i n the first quarter of fiscal year 2017, Woodward purchased 350 shares of its common stock for $24,004 pursuant to a 10b5-1 plan. In the first quarter of fiscal year 2016, Woodward executed a 10b5-1 plan to repurchase up to $125,000 of its common stock for a period that ended on April 20, 2016. During the first quarter of fiscal year 2016, Woodward purchased 624 shares of its common stock for $30,712 pursuant to the 10b5-1 plan under the prior stock repurchase program, which was terminated in November 2016 . Stock -based compensation Provisions governing outstanding stock option awards are included in the 2006 Omnibus Incentive Plan (the “2006 Plan”) and the 2002 Stock Option Plan (the “2002 Plan”). The 2002 Plan provided that no further grants would be made after December 31, 2006. The 2006 Plan, which was approved by Woodward’s stockholders and became effective January 25, 2006, expired in fiscal year 2016. No further grants will be made under either the 2002 Plan or the 2006 Plan. Woodward’s stockholders approved a successor plan to the 2006 Plan (the “2017 Plan”) at the January 25, 2017 Annual Stockholder Meeting. As of September 14, 2016 , the effective date of the 2017 Plan, Board of Directors delegated authority to administer the 2017 Plan to the compensation committee of the board (the “Committee”), including, but not limited to, the power to determine the recipients of awards and the terms of those awards. The Committee approved issuance of options under the 2017 Plan, with an award date of October 3, 2016 conditional and subject to approval of the 2017 Plan by the stockholders. The stock options conditionally awarded under the 2017 Plan were not granted or outstanding for accounting purposes prior to stockholder approval of the 2017 Plan, and as such no stock based compensation expense was recognized on these stock options during the three months ended December 31, 2016. As of December 31, 2016, 773 stock options awards were approved but not granted. Stock options Woodward granted no stock options in the first quarter of fiscal year 2017. Previous stock options granted under the 2006 Plan were granted with an exercise price equal to the market price of Woodward’s stock at the date of grant, a ten - year term, and generally a four -year vesting schedule at a rate of 25 % per year. The following is a summary of the activity for stock option awards during the three-months ended December 3 1 , 2016: Three-Months Ended December 31, 2016 Number of options Weighted-Average Exercise Price per Share Options, beginning balance 4,944 $ 35.35 Options granted - n/a Options exercised (139) 34.83 Options forfeited (13) 42.19 Options, ending balance 4,792 35.35 Changes in non-vested stock options during the three-months ended December 3 1 , 2016 were as follows: Three-Months Ended December 31, 2016 Number of options Weighted-Average Grant Date Fair Value Per Share Options outstanding, beginning balance 2,075 $ 14.90 Options granted - n/a Options vested (758) 15.24 Options forfeited (13) 14.47 Options outstanding, ending balance 1,304 14.70 Information about stock options that have vested, or are expected to vest, and are exercisable at December 31 , 2016 was as follows: Number Weighted- Average Exercise Price Weighted- Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 4,792 $ 35.35 5.9 $ 161,511 Options vested and exercisable 3,488 32.83 5.0 126,348 Options vested and expected to vest 4,719 35.25 5.8 159,525 Restricted Stock In the first quarter of fiscal year 2014, Woodward granted an award of 24 shares of restricted stock to its Chief Executive Officer and President, Thomas A. Gendron. Subject to Mr. Gendron’s continued employment by the Company, 100% of these shares of restricted stock will vest following the end of the Company’s fiscal year 2017 if a specified cumulative earnings per share (“EPS”) target is met or exceeded for fiscal years 2014 through 2017 . If this EPS target is not met, all shares of restricted stock will be forfeited by Mr. Gendron. The shares of restricted stock were awarded to Mr. Gendron pursuant to a form restricted stock agreement approved by Woodward’s Compensation Committee of the Board of Directors. A summary of the activity for restricted stock awards in the three-months ended December 3 1 , 2016 follows: Three-Months Ended December 31, 2016 Number Fair Value per Share Beginning balance 24 $ 39.43 Shares granted - n/a Shares vested - n/a Shares forfeited - n/a Ending balance 24 39.43 Stock-based compensation cost Woodward recognizes stock compensation expense on a straight-line basis over the requisite service period. Pursuant to form stock option agreements used by the Company, the requisite service period can be less than the four-year vesting period based on grantee’s retirement eligibility . As such, the recognition of stock-based compensation expense associated with some stock option grants can be accelerated to a period of less than four years, including immediate recognition of stock-based compensation on the date of grant. At December 31 , 2016, there was approximately $6,820 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, both stock options and restricted stock awards, granted under the 2002 Plan and the 2006 Plan (for which no further grants will be made under either plan). The pre-vesting forfeiture rates for purposes of determining stock-based compensation cost recognized were estimated to be 0% for members of Woodward’s board of directors and 9% for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 2.1 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure | |
Commitments and Contingencies | Note 19. Commitments and contingencies Woodward is currently involved in claims, pending or threatened litigation or other legal proceedings, investigations and/or regulatory proceedings arising in the normal course of business, including, among others, those relating to product liability claims, employment matters, worker’s compensation claims, contractual disputes, product warranty claims and alleged violations of various laws and regulations. Woodward accrues for known individual matters where it believes that it is probable the matter will result in a loss when ultimately resolved using estimates of the most likely amount of loss. Legal costs are expensed as incurred and are classified in “Selling, general and administrative expenses” on the Condensed Consolidated Statements of Earnings. Woodward is partially self-insured in the United States for healthcare and worker’s compensation up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of these claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities. While the outcome of pending claims, legal and regulatory proceedings, and investigations cannot be predicted with certainty, management believes that any liabilities that may result from these claims, proceedings and investigations will not have a material effect on Woodward's liquidity, financial condition, or results of operations. In the event of a change in control of Woodward, as defined in change-in-control agreements with its current corporate officers, Woodward may be required to pay termination benefits to such officers. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2016 | |
Segment Information | |
Segment Information | Note 20 . Segment information Woodward serves the aerospace, industrial and energy 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 costs, 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: Three-Months Ended December 31, 2016 2015 Segment external net sales: Aerospace $ 266,680 $ 268,599 Industrial 176,214 176,511 Total consolidated net sales $ 442,894 $ 445,110 Segment earnings: Aerospace $ 46,877 $ 43,486 Industrial 17,998 21,551 Total segment earnings 64,875 65,037 Nonsegment expenses (11,381) (30,620) Interest expense, net (6,435) (6,461) Consolidated earnings before income taxes $ 47,059 $ 27,956 Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets by segment follows: December 31, 2016 September 30, 2016 Segment assets: Aerospace $ 1,611,306 $ 1,637,522 Industrial 663,886 705,169 Total segment assets 2,275,192 2,342,691 Unallocated corporate property, plant and equipment, net 89,990 89,988 Other unallocated assets 211,033 209,683 Consolidated total assets $ 2,576,215 $ 2,642,362 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share | |
Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted | Three-Months Ended December 31, 2016 2015 Numerator: Net earnings $ 46,548 $ 25,820 Denominator: Basic shares outstanding 61,559 63,054 Dilutive effect of stock options and restricted stock 2,112 1,398 Diluted shares outstanding 63,671 64,452 Income per common share: Basic earnings per share $ 0.76 $ 0.41 Diluted earnings per share $ 0.73 $ 0.40 |
Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding | Three-Months Ended December 31, 2016 2015 Weighted-average treasury stock shares held for deferred compensation obligations 170 184 |
Financial Instruments and Fai30
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Financial Instruments and Fair Value Measurments | |
Financial Assets that are Measured at Fair Value on a Recurring Basis | At December 31, 2016 At September 30, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Cash $ 71,894 $ - $ - $ 71,894 $ 80,959 $ - $ - $ 80,959 Investments in money market funds - - - - 48 - - 48 Investments in reverse repurchase agreements 313 - - 313 83 - - 83 Investments in term deposits with foreign banks 8,678 - - 8,678 7,136 - - 7,136 Equity securities 14,603 - - 14,603 12,491 - - 12,491 Total financial assets $ 95,488 $ - $ - $ 95,488 $ 100,717 $ - $ - $ 100,717 |
Estimated Fair Values of Financial Instruments | At December 31, 2016 At September 30, 2016 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 $ 16,201 $ 15,229 $ 17,501 $ 15,849 Investments in short-term time deposits 2 4,065 4,084 4,882 4,918 Liabilities: Short-term borrowings 2 (150,000) (150,000) (150,000) (150,000) Long-term debt, excluding current portion 2 $ (590,556) $ (571,852) $ (617,857) $ (579,244) |
Derivative Instruments and He31
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities | |
Impact of Derivative Instruments on Earnings | Three-Months Ended December 31, 2016 2015 Amount of (income) expense recognized in earnings on derivative $ (18) $ 29 Amount of (gain) loss recognized in accumulated OCI on derivative - - Amount of (gain) loss reclassified from accumulated OCI into earnings (18) 29 |
Supplemental Statements of Ca32
Supplemental Statements of Cash Flows Information (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Supplemental Statements of Cash Flows Information | |
Schedule of Cash Flow Supplemental Disclosures | Three-Months Ended December 31, 2016 2015 Interest paid, net of amounts capitalized $ 10,317 $ 14,878 Income taxes paid 6,047 3,667 Income tax refunds received 59 913 Non-cash activities: Purchases of property, plant and equipment on account 6,130 26,666 Common shares issued from treasury to settle employee liabilities 1,767 - |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Inventories | |
Schedule of Inventories | December 31, September 30, 2016 2016 Raw materials $ 58,064 $ 54,246 Work in progress 111,908 109,756 Component parts (1) 269,456 249,307 Finished goods 54,336 48,374 $ 493,764 $ 461,683 |
Property, Plant, and Equipmen34
Property, Plant, and Equipment, Net (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Property, Plant, and Equipment, Net | |
Schedule of Property Plant and Equipment, Net | December 31, September 30, 2016 2016 Land and land improvements $ 87,294 $ 87,696 Buildings and building improvements 525,710 527,704 Leasehold improvements 14,662 15,213 Machinery and production equipment 481,041 484,315 Computer equipment and software 122,418 117,984 Office furniture and equipment 29,133 29,344 Other 19,121 18,969 Construction in progress 92,516 88,909 1,371,895 1,370,134 Less accumulated depreciation (494,818) (493,784) Property, plant, and equipment, net $ 877,077 $ 876,350 |
Schedule of Depreciation Expense | Three-Months Ended December 31, 2016 2015 Depreciation expense $ 12,455 $ 10,116 |
Schedule of Capitalized Interest | Three-Months Ended December 31, 2016 2015 Capitalized interest $ 472 $ 1,873 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Goodwill Disclosure | |
Schedule of Goodwill | September 30, 2016 Effects of Foreign Currency Translation December 31, 2016 Aerospace $ 455,423 $ - $ 455,423 Industrial 100,261 (2,384) 97,877 Consolidated $ 555,684 $ (2,384) $ 553,300 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Net | |
Schedule of Finite-Lived Intangible Assets by Major Class | December 31, 2016 September 30, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount Customer relationships and contracts: Aerospace $ 282,225 $ (138,408) $ 143,817 $ 282,225 $ (134,158) $ 148,067 Industrial 40,693 (33,530) 7,163 40,969 (33,509) 7,460 Total $ 322,918 $ (171,938) $ 150,980 $ 323,194 $ (167,667) $ 155,527 Intellectual property: Aerospace $ - $ - $ - $ - $ - $ - Industrial 19,156 (17,734) 1,422 19,435 (17,876) 1,559 Total $ 19,156 $ (17,734) $ 1,422 $ 19,435 $ (17,876) $ 1,559 Process technology: Aerospace $ 76,605 $ (44,703) $ 31,902 $ 76,605 $ (43,229) $ 33,376 Industrial 22,596 (16,344) 6,252 22,965 (16,200) 6,765 Total $ 99,201 $ (61,047) $ 38,154 $ 99,570 $ (59,429) $ 40,141 Other intangibles: Aerospace $ - $ - $ - $ - $ - $ - Industrial 1,168 (791) 377 1,246 (823) 423 Total $ 1,168 $ (791) $ 377 $ 1,246 $ (823) $ 423 Total intangibles: Aerospace $ 358,830 $ (183,111) $ 175,719 $ 358,830 $ (177,387) $ 181,443 Industrial 83,613 (68,399) 15,214 84,615 (68,408) 16,207 Consolidated Total $ 442,443 $ (251,510) $ 190,933 $ 443,445 $ (245,795) $ 197,650 |
Schedule of Finite-Lived Intangible Assets Amortization Expense | Three-Months Ended December 31, 2016 2015 Amortization expense $ 6,458 $ 6,946 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Year Ending September 30: 2017 (remaining) $ 19,279 2018 24,907 2019 23,071 2020 20,332 2021 18,393 Thereafter 84,951 $ 190,933 |
Credit Facilities, Short-term37
Credit Facilities, Short-term Borrowings and Long-term Debt (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure | |
Schedule of Long-term Debt | December 31, September 30, 2016 2016 Revolving credit facility - Floating rate (LIBOR plus 0.85% - 1.65% ), due April 2020 , unsecured $ 160,550 $ 156,700 Series D notes – 6.39%, due October 2018; unsecured 100,000 100,000 Series F notes – 8.24%, due April 2019; unsecured 43,000 43,000 Series G notes – 3.42%, due November 2020; unsecured 50,000 50,000 Series H notes – 4.03%, due November 2023; unsecured 25,000 25,000 Series I notes – 4.18%, due November 2025; unsecured 25,000 25,000 Series J notes – Floating rate (LIBOR plus 1.25%), due November 2020; unsecured 50,000 50,000 Series K notes – 4.03%, due November 2023; unsecured 50,000 50,000 Series L notes – 4.18%, due November 2025; unsecured 50,000 50,000 Series M notes – 1.12% due September 2026; unsecured 42,076 44,886 Series N notes – 1.31% due September 2028; unsecured 80,995 86,406 Series O notes – 1.57% due September 2031; unsecured 45,231 48,252 Total debt 721,852 729,244 Less: Current portion of long-term debt (150,000) (150,000) Unamortized debt issuance costs (1,974) (2,091) Long-term debt, less current portion $ 569,878 $ 577,153 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities | December 31, September 30, 2016 2016 Salaries and other member benefits $ 47,677 $ 87,197 Warranties 15,528 15,993 Interest payable 5,789 9,071 Current portion of acquired performance obligations and unfavorable contracts (1) 2,910 2,910 Accrued retirement benefits 2,503 2,505 Current portion of loss reserve on contractual lease commitments 1,840 1,840 Current portion of deferred income from JV formation (Note 4) 6,452 6,552 Deferred revenues 7,577 5,779 Taxes, other than income 9,289 14,580 Other 16,258 10,200 $ 115,823 $ 156,627 |
Warranties | Three-Months Ended December 31, 2016 2015 Warranties, beginning of period $ 15,993 $ 13,741 Expense, net of recoveries 1,923 3,236 Reductions for settling warranties (2,032) (3,469) Foreign currency exchange rate changes (356) (138) Warranties, end of period $ 15,528 $ 13,370 |
Loss Reserve On Contractual Lease Commitments [Member] | |
Loss Reserve Activity | Three-Months Ended December 31, 2016 2015 Loss reserve on contractual lease commitments, beginning of period $ 9,242 $ 2,464 Additions - 8,165 Payments (402) - Loss reserve on contractual lease commitments, end of period $ 8,840 $ 10,629 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Other Liabilities | |
Schedule of Other Liabilities | December 31, September 30, 2016 2016 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 70,549 $ 70,479 Noncurrent portion of deferred income from JV formation (1) 236,791 238,187 Total unrecognized tax benefits, net of offsetting adjustments (Note 16) 12,541 17,239 Acquired unfavorable contracts (2) 2,859 3,148 Deferred economic incentives (3) 15,685 16,196 Loss reserve on contractual lease commitments (4) 7,000 7,402 Other 13,004 15,573 $ 358,429 $ 368,224 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Other (Income) Expense, Net | |
Schedule of Other (Income) Expense, Net | Three-Months Ended December 31, 2016 2015 Equity interest in the earnings of the JV (Note 4) $ (684) $ - Net gain on sales of assets (3,699) (1,602) Rent income (73) (101) Net gains on investments in deferred compensation program (24) (304) Other (108) (2) $ (4,588) $ (2,009) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Tax Expense and Effective Tax Rate | Three-Months Ended December 31, 2016 2015 Earnings before income taxes $ 47,059 $ 27,956 Income tax expense 511 2,136 Effective tax rate 1.1% 7.6% |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Schedule of Estimated Remaining Cash Contributions | Retirement pension benefits: United States $ - United Kingdom 323 Japan - Other postretirement benefits 3,424 |
Pension Plans, Defined Benefit [Member] | |
Schedule of Net Periodic Benefit Costs | Three-Months Ended December 31, United States Other Countries Total 2016 2015 2016 2015 2016 2015 Service cost $ 419 $ 674 $ 192 $ 186 $ 611 $ 860 Interest cost 1,439 1,317 296 435 1,735 1,752 Expected return on plan assets (2,632) (2,542) (641) (697) (3,273) (3,239) Amortization of: Net actuarial loss 464 323 127 65 591 388 Prior service cost 96 96 - - 96 96 Net periodic retirement pension benefit $ (214) $ (132) $ (26) $ (11) $ (240) $ (143) Contributions paid $ - $ - $ 365 $ 389 $ 365 $ 389 |
Multiemployer Plan [Member] | |
Schedule of Costs of Retirement Plans | Three-Months Ended December 31, 2016 2015 Company contributions $ 68 $ 130 |
Defined Contribution Plan [Member] | |
Schedule of Costs of Retirement Plans | Three-Months Ended December 31, 2016 2015 Company costs $ 7,249 $ 8,004 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |
Schedule of Net Periodic Benefit Costs | Three-Months Ended December 31, 2016 2015 Service cost $ 4 $ 5 Interest cost 311 262 Amortization of: Net actuarial loss 50 39 Prior service benefit (40) (40) Net periodic other postretirement cost $ 325 $ 266 Contributions paid $ 615 $ 381 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Activity for Stock Option Awards | Three-Months Ended December 31, 2016 Number of options Weighted-Average Exercise Price per Share Options, beginning balance 4,944 $ 35.35 Options granted - n/a Options exercised (139) 34.83 Options forfeited (13) 42.19 Options, ending balance 4,792 35.35 |
Stock Options Vested, Or Expected to Vest and Are Exercisable | Number Weighted- Average Exercise Price Weighted- Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 4,792 $ 35.35 5.9 $ 161,511 Options vested and exercisable 3,488 32.83 5.0 126,348 Options vested and expected to vest 4,719 35.25 5.8 159,525 |
Changes in Restricted Stock Awards | Three-Months Ended December 31, 2016 Number Fair Value per Share Beginning balance 24 $ 39.43 Shares granted - n/a Shares vested - n/a Shares forfeited - n/a Ending balance 24 39.43 |
Stock Options [Member] | |
Changes in Nonvested Stock Options | Three-Months Ended December 31, 2016 Number of options Weighted-Average Grant Date Fair Value Per Share Options outstanding, beginning balance 2,075 $ 14.90 Options granted - n/a Options vested (758) 15.24 Options forfeited (13) 14.47 Options outstanding, ending balance 1,304 14.70 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Segment Information | |
Consolidated Net Sales and Earnings by Segment | Three-Months Ended December 31, 2016 2015 Segment external net sales: Aerospace $ 266,680 $ 268,599 Industrial 176,214 176,511 Total consolidated net sales $ 442,894 $ 445,110 Segment earnings: Aerospace $ 46,877 $ 43,486 Industrial 17,998 21,551 Total segment earnings 64,875 65,037 Nonsegment expenses (11,381) (30,620) Interest expense, net (6,435) (6,461) Consolidated earnings before income taxes $ 47,059 $ 27,956 |
Consolidated Total Assets by Segment | December 31, 2016 September 30, 2016 Segment assets: Aerospace $ 1,611,306 $ 1,637,522 Industrial 663,886 705,169 Total segment assets 2,275,192 2,342,691 Unallocated corporate property, plant and equipment, net 89,990 89,988 Other unallocated assets 211,033 209,683 Consolidated total assets $ 2,576,215 $ 2,642,362 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Narrative) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Recent Accounting Pronouncements | |
Rent expense for all operating leases | $ 7,359 |
Future minimum rental payments required under operating leases | $ 15,612 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) shares in Thousands | 15 Months Ended |
Dec. 31, 2016shares | |
Stock Options [Member] | |
Options | 0 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share | ||
Net earnings | $ 46,548 | $ 25,820 |
Basic shares outstanding | 61,559 | 63,054 |
Dilutive effect of stock options and restricted stock | 2,112 | 1,398 |
Diluted shares outstanding | 63,671 | 64,452 |
Basic earnings per share | $ 0.76 | $ 0.41 |
Diluted earnings per share | $ 0.73 | $ 0.40 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding) (Details) - shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share | ||
Weighted-average treasury stock shares held for deferred compensation obligations | 170 | 184 |
Joint Ventures (Narrative) (Det
Joint Ventures (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Jan. 04, 2016 | |
Current portion of deferred income recorded in connection with joint venture | $ 6,452 | $ 6,552 | ||||
Noncurrent portion of deferred income recorded in connection with joint venture | 236,791 | 238,187 | ||||
Income taxes payable | 1,374 | $ 4,547 | ||||
Equity interest in earnings of joint venture | 684 | $ 0 | ||||
Woodward and General Electric Joint Venture [Member] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Cash received from formation of joint venture | $ 250,000 | |||||
Cash to be received annually from formation of joint venture | $ 4,894 | |||||
Amount of deferred income recorded in connection with joint venture | $ 250,000 | |||||
Current portion of deferred income recorded in connection with joint venture | 6,452 | $ 6,552 | ||||
Noncurrent portion of deferred income recorded in connection with joint venture | 236,791 | 238,187 | ||||
Equity interest in earnings of joint venture | 684 | |||||
Cash distributions from joint venture | 0 | |||||
Net investment in joint venture | 6,888 | |||||
Accounts receivable from related party | 5,145 | 5,326 | ||||
Accounts payable to related party | 5,012 | $ 3,926 | ||||
Woodward and General Electric Joint Venture [Member] | Sales [Member] | ||||||
Amortization of deferred income recognized as an increase to sales | 1,496 | |||||
Sales to related party | 15,302 | |||||
Reduction to sales related to royalties paid to joint venture | $ 5,403 |
Financial Instruments and Fai50
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Sep. 30, 2016 | |
Financial liability on recurring basis | $ 0 | $ 0 |
Investments in Short-Term Time Deposits [Member] | ||
Interest rate used to estimate fair value | 6.60% | 6.90% |
Long Term Notes Receivable From Municipalities [Member] | ||
Interest rate used to estimate fair value | 2.90% | 2.20% |
Borrowings [Member] | ||
Interest rate used to estimate fair value | 2.40% | 1.90% |
Financial Instruments and Fai51
Financial Instruments and Fair Value Measurements (Financial Assets that are Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Total financial assets | $ 95,488 | $ 100,717 |
Fair Value, Inputs, Level 1 [Member] | ||
Total financial assets | 95,488 | 100,717 |
Fair Value, Inputs, Level 2 [Member] | ||
Total financial assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Total financial assets | 0 | 0 |
Cash [Member] | ||
Cash and cash equivalents | 71,894 | 80,959 |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 71,894 | 80,959 |
Cash [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Cash [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments in Money Market Funds [Member] | ||
Cash and cash equivalents | 0 | 48 |
Investments in Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 0 | 48 |
Investments in Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments in Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments in Reverse Repurchase Agreements [Member] | ||
Cash and cash equivalents | 313 | 83 |
Investments in Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 313 | 83 |
Investments in Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments in Reverse Repurchase Agreements [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments in Term Deposits with Foreign Banks [Member] | ||
Cash and cash equivalents | 8,678 | 7,136 |
Investments in Term Deposits with Foreign Banks [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 8,678 | 7,136 |
Investments in Term Deposits with Foreign Banks [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments in Term Deposits with Foreign Banks [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | 0 | 0 |
Equity Securities [Member] | ||
Equity securities | 14,603 | 12,491 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity securities | 14,603 | 12,491 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Equity securities | 0 | 0 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Equity securities | $ 0 | $ 0 |
Financial Instruments and Fai52
Financial Instruments and Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Notes receivable from municipalities, Carrying Cost | $ 15,229 | $ 15,849 |
Investments in short-term time deposits, Carrying Cost | 4,084 | 4,918 |
Short-term borrowings, Carrying Cost | (150,000) | (150,000) |
Long-term debt, excluding current portion, Carrying Cost | (571,852) | (579,244) |
Fair Value, Inputs, Level 2 [Member] | ||
Notes receivable from municipalities, Estimated Fair Value | 16,201 | 17,501 |
Investments in short-term time deposits, Estimated Fair Value | 4,065 | 4,882 |
Short-term borrowings, Estimated Fair Value | (150,000) | (150,000) |
Long-term debt, excluding current portion, Estimated Fair Value | $ (590,556) | $ (617,857) |
Derivative Instruments and He53
Derivative Instruments and Hedging Activities (Narrative) (Details) € in Thousands, ¥ in Thousands, $ in Thousands | 3 Months Ended | ||||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | |
Net unrecognized gains on terminated derivative instruments expected to be reclassified to earnings | $ 72 | ||||||
Term of gain or loss recognition in interest expense on terminated derivatives recorded in OCI | 12 months | ||||||
EUR Denominated Loan [Member] | |||||||
Gain (loss) on foreign currency transaction designated as a hedge of a net investment in a foreign subsidiary | $ 2,814 | ||||||
Intercompany Loan [Member] | |||||||
Gain (loss) on foreign currency transaction designated as a hedge of a net investment in a foreign subsidiary | 1,016 | $ 862 | |||||
Value of Net Investment Hedging Instruments Used | ¥ | ¥ 160,000 | ¥ 160,000 | |||||
Derivatives in Cash Flow Hedging Relationships [Member] | |||||||
Amount of Gain (Loss) Recognized in Accumulated OCI on Derivative | $ 0 | $ 0 | |||||
Total Accumulated Other Comprehensive (Loss) Earnings [Member] | |||||||
Unrecognized gains (loss) | $ 272 | $ 290 | |||||
2008 Note Purchase Agreement [Member] | |||||||
Issuance Date | Oct. 1, 2008 | ||||||
2009 Note Purchase Agreement [Member] | |||||||
Issuance Date | Apr. 1, 2009 | ||||||
2013 Note Purchase Agreement [Member] | |||||||
Issuance Date | Oct. 1, 2013 | ||||||
Face Amount | $ 250,000 | ||||||
First Closing Notes [Member] | |||||||
Issuance Date | Oct. 1, 2013 | ||||||
Second Closing Notes [Member] | |||||||
Issuance Date | Nov. 15, 2013 | Nov. 15, 2013 | |||||
2016 Note Purchase Agreements [Member] | |||||||
Issuance Date | Sep. 23, 2016 | ||||||
Face Amount | € | € 160,000 | ||||||
Series O Notes [Member] | |||||||
Face Amount | € | 43,000 | ||||||
Series N Notes [Member] | |||||||
Face Amount | € | 77,000 | ||||||
Series M Notes [Member] | |||||||
Value of Net Investment Hedging Instruments Used | € | 40,000 | ||||||
Face Amount | € | € 40,000 |
Derivative Instruments and He54
Derivative Instruments and Hedging Activities (Impact of Derivative Instruments on Earnings) (Details) - Derivatives in Cash Flow Hedging Relationships [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Amount of (Income) Expense Recognized in Earnings on Derivative | $ (18) | $ 29 |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | 0 | 0 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ (18) | $ 29 |
Supplemental Statements of Ca55
Supplemental Statements of Cash Flows Information (Schedule of Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Statements of Cash Flows Information | ||
Interest paid, net of amounts capitalized | $ 10,317 | $ 14,878 |
Income taxes paid | 6,047 | 3,667 |
Income tax refunds received | 59 | 913 |
Purchases of property, plant and equipment on account | 6,130 | 26,666 |
Common shares issued from treasury stock to settle employee liabilities | $ 1,767 | $ 0 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Inventories | ||
Raw Materials | $ 58,064 | $ 54,246 |
Work in progress | 111,908 | 109,756 |
Component Parts | 269,456 | 249,307 |
Finished Goods | 54,336 | 48,374 |
Inventory, net | $ 493,764 | $ 461,683 |
Property, Plant, and Equipmen57
Property, Plant, and Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Construction in progress | $ 92,516 | $ 88,909 | |
Depreciation expense | 12,455 | $ 10,116 | |
Second Campus Rockford Illinois [Member] | |||
Construction in progress | 34,207 | 26,741 | |
Office furniture and equipment [Member] | |||
Gross assets acquired on capital leases | 1,653 | ||
Accumulated depreciation on capital lease assets | $ 425 | $ 322 |
Property, Plant, and Equipmen58
Property, Plant, and Equipment, Net (Property, Plant, and Equipment - Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Property, Plant, and Equipment, Net | |||
Land and Land Improvements | $ 87,294 | $ 87,696 | |
Buildings and improvements | 525,710 | 527,704 | |
Leasehold improvements | 14,662 | 15,213 | |
Machinery and production equipment | 481,041 | 484,315 | |
Computer equipment and software | 122,418 | 117,984 | |
Office furniture and equipment | 29,133 | 29,344 | |
Other | 19,121 | 18,969 | |
Construction in progress | 92,516 | 88,909 | |
Property, Plant and Equipment, Gross, Total | 1,371,895 | 1,370,134 | |
Less accumulated depreciation | (494,818) | (493,784) | |
Property, Plant and Equipment, Net, Total | 877,077 | $ 876,350 | |
Depreciation expense | 12,455 | $ 10,116 | |
Capitalized interest | $ 472 | $ 1,873 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2016 | |
Assumed annual compound growth rate after five or ten years | 3.71% |
Minimum [Member] | |
Weighted average cost of capital assumption | 8.91% |
Maximum [Member] | |
Weighted average cost of capital assumption | 11.49% |
Goodwill (Goodwill) (Details)
Goodwill (Goodwill) (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill, Beginning Balance | $ 555,684 |
Effects of Currency Translation | (2,384) |
Goodwill, Ending Balance | 553,300 |
Aerospace [Member] | |
Goodwill, Beginning Balance | 455,423 |
Effects of Currency Translation | 0 |
Goodwill, Ending Balance | 455,423 |
Industrial [Member] | |
Goodwill, Beginning Balance | 100,261 |
Effects of Currency Translation | (2,384) |
Goodwill, Ending Balance | $ 97,877 |
Intangible Assets, Net (Schedul
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Gross Carrying Value | $ 442,443 | $ 443,445 | |
Accumulated Amortization | (251,510) | (245,795) | |
Net Carrying Amount | 190,933 | 197,650 | |
Amortization expense | 6,458 | $ 6,946 | |
Process Technology [Member] | |||
Gross Carrying Value | 99,201 | 99,570 | |
Accumulated Amortization | (61,047) | (59,429) | |
Net Carrying Amount | 38,154 | 40,141 | |
Customer Relationships [Member] | |||
Gross Carrying Value | 322,918 | 323,194 | |
Accumulated Amortization | (171,938) | (167,667) | |
Net Carrying Amount | 150,980 | 155,527 | |
Intellectual Property [Member] | |||
Gross Carrying Value | 19,156 | 19,435 | |
Accumulated Amortization | (17,734) | (17,876) | |
Net Carrying Amount | 1,422 | 1,559 | |
Other Intangibles [Member] | |||
Gross Carrying Value | 1,168 | 1,246 | |
Accumulated Amortization | (791) | (823) | |
Net Carrying Amount | 377 | 423 | |
Aerospace [Member] | |||
Gross Carrying Value | 358,830 | 358,830 | |
Accumulated Amortization | (183,111) | (177,387) | |
Net Carrying Amount | 175,719 | 181,443 | |
Aerospace [Member] | Process Technology [Member] | |||
Gross Carrying Value | 76,605 | 76,605 | |
Accumulated Amortization | (44,703) | (43,229) | |
Net Carrying Amount | 31,902 | 33,376 | |
Aerospace [Member] | Customer Relationships [Member] | |||
Gross Carrying Value | 282,225 | 282,225 | |
Accumulated Amortization | (138,408) | (134,158) | |
Net Carrying Amount | 143,817 | 148,067 | |
Aerospace [Member] | Intellectual Property [Member] | |||
Gross Carrying Value | 0 | 0 | |
Accumulated Amortization | 0 | 0 | |
Net Carrying Amount | 0 | 0 | |
Aerospace [Member] | Other Intangibles [Member] | |||
Gross Carrying Value | 0 | 0 | |
Accumulated Amortization | 0 | 0 | |
Net Carrying Amount | 0 | 0 | |
Industrial [Member] | |||
Gross Carrying Value | 83,613 | 84,615 | |
Accumulated Amortization | (68,399) | (68,408) | |
Net Carrying Amount | 15,214 | 16,207 | |
Industrial [Member] | Process Technology [Member] | |||
Gross Carrying Value | 22,596 | 22,965 | |
Accumulated Amortization | (16,344) | (16,200) | |
Net Carrying Amount | 6,252 | 6,765 | |
Industrial [Member] | Customer Relationships [Member] | |||
Gross Carrying Value | 40,693 | 40,969 | |
Accumulated Amortization | (33,530) | (33,509) | |
Net Carrying Amount | 7,163 | 7,460 | |
Industrial [Member] | Intellectual Property [Member] | |||
Gross Carrying Value | 19,156 | 19,435 | |
Accumulated Amortization | (17,734) | (17,876) | |
Net Carrying Amount | 1,422 | 1,559 | |
Industrial [Member] | Other Intangibles [Member] | |||
Gross Carrying Value | 1,168 | 1,246 | |
Accumulated Amortization | (791) | (823) | |
Net Carrying Amount | $ 377 | $ 423 |
Intangible Assets, Net (Sched62
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Intangible Assets, Net | ||
2017 Remaining | $ 19,279 | |
2,018 | 24,907 | |
2,019 | 23,071 | |
2,020 | 20,332 | |
2,021 | 18,393 | |
Thereafter | 84,951 | |
Finite-Lived Intangible Assets, Net, Total | $ 190,933 | $ 197,650 |
Credit Facilities, Short-term63
Credit Facilities, Short-term Borrowings and Long-term Debt (Narrative) (Details) € in Thousands, BRL in Thousands, $ in Thousands | Jan. 23, 2017BRL | Dec. 31, 2016USD ($) | Dec. 31, 2015 | Sep. 30, 2016USD ($) | Dec. 31, 2016BRL | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) |
Short-term borrowings | $ 150,000 | $ 150,000 | |||||
Balance of unamortized debt issuance costs | $ 2,091 | 1,974 | |||||
Other Foreign Short-term Borrowings [Member] | |||||||
Outstanding borrowings | 0 | ||||||
Revolving Credit Agreement [Member] | |||||||
Maximum borrowing capacity | 1,000,000 | ||||||
Option to increase maximum borrowings to this amount | $ 1,200,000 | ||||||
Line of Credit Facility, Expiration Date | Apr. 1, 2020 | ||||||
Variable Rate Basis | LIBOR | ||||||
Credit facility effective interest rate on outstanding borrowing | 1.77% | 1.66% | 1.66% | 1.66% | |||
Outstanding borrowings | $ 156,700 | $ 160,550 | |||||
Current portion of outstanding borrowings | $ 150,000 | 150,000 | |||||
Balance of unamortized debt issuance costs, line of credit | 3,134 | 2,915 | |||||
Chinese Credit Facility [Member] | |||||||
Maximum borrowing capacity | $ 22,700 | 22,700 | |||||
Outstanding borrowings | 0 | ||||||
Chinese Credit Facility, RMB Denominated Loan [Member] | |||||||
Variable Rate Basis | prevailing interest rate offered by the People's Bank of China on the date of borrowing, plus a margin equal to 15% of that prevailing rate | interest at the prevailing interest rate offered by the People's Bank of China on the date of borrowing, plus a margin equal to 15% of that prevailing rate | |||||
Chinese Credit Facility, USD Denominated Loan [Member] | |||||||
Variable Rate Basis | lender's cost of borrowing rate at the date of borrowing, plus 3% | interest at the lender's cost of borrowing rate at the date of borrowing, plus 3% | |||||
Brazil Credit Facility BRL Denominated Loan [Member] | |||||||
Maximum borrowing capacity | BRL | BRL 1,000 | BRL 52,000 | |||||
Line of Credit Facility, Expiration Date | Jul. 14, 2017 | ||||||
Variable Rate Basis | interest at the lender's cost of borrowing rate at the date of borrowing, plus 1.75% | ||||||
Basis Spread On Variable Rate | 1.75% | ||||||
Outstanding borrowings | 0 | ||||||
Minimum [Member] | Revolving Credit Agreement [Member] | |||||||
Basis Spread On Variable Rate | 0.85% | ||||||
Maximum [Member] | Revolving Credit Agreement [Member] | |||||||
Basis Spread On Variable Rate | 1.65% | ||||||
The Notes [Member] | |||||||
Balance of unamortized debt issuance costs | $ 2,091 | 1,974 | |||||
2008 Note Purchase Agreement [Member] | |||||||
Issuance Date | Oct. 1, 2008 | ||||||
2009 Note Purchase Agreement [Member] | |||||||
Issuance Date | Apr. 1, 2009 | ||||||
2013 Note Purchase Agreement [Member] | |||||||
Issuance Date | Oct. 1, 2013 | ||||||
Face Amount | $ 250,000 | ||||||
First Closing Notes [Member] | |||||||
Issuance Date | Oct. 1, 2013 | ||||||
Second Closing Notes [Member] | |||||||
Issuance Date | Nov. 15, 2013 | Nov. 15, 2013 | |||||
Series J Notes [Member] | |||||||
Variable interest rate | 2.16% | 2.16% | 2.16% | ||||
2016 Note Purchase Agreements [Member] | |||||||
Issuance Date | Sep. 23, 2016 | ||||||
Face Amount | € | € 160,000 | ||||||
Series M Notes [Member] | |||||||
Face Amount | € | 40,000 | ||||||
Series N Notes [Member] | |||||||
Face Amount | € | 77,000 | ||||||
Series O Notes [Member] | |||||||
Face Amount | € | € 43,000 |
Long-term Debt (Schedule of Lon
Long-term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Sep. 30, 2016 | |
Total debt | $ 721,852 | $ 729,244 |
Current portion of long-term debt | (150,000) | (150,000) |
Unamortized debt issuance costs | (1,974) | (2,091) |
Long-term debt, less current portion | $ 569,878 | $ 577,153 |
Series D Notes [Member] | Notes Payable to Banks [Member] | ||
Interest rate | 6.39% | 6.39% |
Maturity date | Oct. 1, 2018 | Oct. 1, 2018 |
Total debt | $ 100,000 | $ 100,000 |
Series F Notes [Member] | Notes Payable to Banks [Member] | ||
Interest rate | 8.24% | 8.24% |
Maturity date | Apr. 3, 2019 | Apr. 3, 2019 |
Total debt | $ 43,000 | $ 43,000 |
Series J Notes [Member] | ||
Variable interest rate | 2.16% | |
Series J Notes [Member] | Notes Payable to Banks [Member] | ||
Basis Spread On Variable Rate | 1.25% | 1.25% |
Maturity date | Nov. 15, 2020 | Nov. 15, 2020 |
Total debt | $ 50,000 | $ 50,000 |
Series G Notes [Member] | Notes Payable to Banks [Member] | ||
Interest rate | 3.42% | 3.42% |
Maturity date | Nov. 15, 2020 | Nov. 15, 2020 |
Total debt | $ 50,000 | $ 50,000 |
Series H Notes [Member] | Notes Payable to Banks [Member] | ||
Interest rate | 4.03% | 4.03% |
Maturity date | Nov. 15, 2023 | Nov. 15, 2023 |
Total debt | $ 25,000 | $ 25,000 |
Series I Notes [Member] | Notes Payable to Banks [Member] | ||
Interest rate | 4.18% | 4.18% |
Maturity date | Nov. 15, 2025 | Nov. 15, 2025 |
Total debt | $ 25,000 | $ 25,000 |
Series K Notes [Member] | Notes Payable to Banks [Member] | ||
Interest rate | 4.03% | 4.03% |
Maturity date | Nov. 15, 2023 | Nov. 15, 2023 |
Total debt | $ 50,000 | $ 50,000 |
Series L Notes [Member] | Notes Payable to Banks [Member] | ||
Interest rate | 4.18% | 4.18% |
Maturity date | Nov. 15, 2025 | Nov. 15, 2025 |
Total debt | $ 50,000 | $ 50,000 |
Series M Notes [Member] | Notes Payable to Banks [Member] | ||
Interest rate | 1.12% | 1.12% |
Maturity date | Sep. 23, 2026 | Sep. 23, 2026 |
Total debt | $ 42,076 | $ 44,886 |
Series N Notes [Member] | Notes Payable to Banks [Member] | ||
Interest rate | 1.31% | 1.31% |
Maturity date | Sep. 23, 2028 | Sep. 23, 2028 |
Total debt | $ 80,995 | $ 86,406 |
Series O Notes [Member] | Notes Payable to Banks [Member] | ||
Interest rate | 1.57% | 1.57% |
Maturity date | Sep. 23, 2031 | Sep. 23, 2031 |
Total debt | $ 45,231 | $ 48,252 |
Revolving Credit Agreement [Member] | ||
Variable Rate Basis | LIBOR | |
Credit facility effective interest rate on outstanding borrowing | 1.66% | 1.77% |
Revolving Credit Agreement [Member] | Domestic Line Of Credit [Member] | ||
Total debt | $ 160,550 | $ 156,700 |
Revolving Credit Agreement [Member] | Minimum [Member] | ||
Basis Spread On Variable Rate | 0.85% | |
Revolving Credit Agreement [Member] | Maximum [Member] | ||
Basis Spread On Variable Rate | 1.65% | |
Chinese Credit Facility, RMB Denominated Loan [Member] | ||
Variable Rate Basis | prevailing interest rate offered by the People's Bank of China on the date of borrowing, plus a margin equal to 15% of that prevailing rate | interest at the prevailing interest rate offered by the People's Bank of China on the date of borrowing, plus a margin equal to 15% of that prevailing rate |
Chinese Credit Facility, USD Denominated Loan [Member] | ||
Variable Rate Basis | lender's cost of borrowing rate at the date of borrowing, plus 3% | interest at the lender's cost of borrowing rate at the date of borrowing, plus 3% |
Accrued Liabilities (Narrative)
Accrued Liabilities (Narrative) (Details) - Loss Reserve On Contractual Lease Commitments [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Loss reserve against the estimated remaining contractual lease commitments, less anticipated sublease income | $ 0 | $ 8,165 | |
Loss reserve, noncurrent portion | $ 7,000 | $ 7,402 |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Salaries and other member benefits | $ 47,677 | $ 87,197 | ||
Warranties | 15,528 | 15,993 | $ 13,370 | $ 13,741 |
Interest payable | 5,789 | 9,071 | ||
Current portion of acquired performance obligations and unfavorable contracts | 2,910 | 2,910 | ||
Accrued retirement benefits | 2,503 | 2,505 | ||
Current portion of deferred income from JV formation (Note 4) | 6,452 | 6,552 | ||
Deferred revenues | 7,577 | 5,779 | ||
Taxes, other than income | 9,289 | 14,580 | ||
Other | 16,258 | 10,200 | ||
Accrued liabilities | 115,823 | 156,627 | ||
Loss Reserve On Contractual Lease Commitments [Member] | ||||
Current portion of loss reserve | $ 1,840 | $ 1,840 |
Accrued Liabilities (Warranties
Accrued Liabilities (Warranties) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accrued Liabilities | ||
Warranties, beginning of period | $ 15,993 | $ 13,741 |
Warranty Expense, net of recoveries | 1,923 | 3,236 |
Reductions for settling warranties | (2,032) | (3,469) |
Foreign currency exchange rate changes | (356) | (138) |
Warranties, end of period | $ 15,528 | $ 13,370 |
Accrued Liabilities (Loss Reser
Accrued Liabilities (Loss Reserve Activity) (Details) - Loss Reserve On Contractual Lease Commitments [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loss reserve on contractual lease commitments, beginning of period | $ 9,242 | $ 2,464 |
Additions | 0 | 8,165 |
Payments | (402) | 0 |
Loss reserve on contractual lease commitments, end of period | $ 8,840 | $ 10,629 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Net accrued retirement benefits, less amounts recognized within accrued liabilities | $ 70,549 | $ 70,479 |
Noncurrent portion of deferred income from JV formation | 236,791 | 238,187 |
Total unrecognized tax benefits, net of offsetting adjustments | 12,541 | 17,239 |
Acquired unfavorable contracts | 2,859 | 3,148 |
Deferred economic incentives | 15,685 | 16,196 |
Other | 13,004 | 15,573 |
Other liabilities | 358,429 | 368,224 |
Loss Reserve On Contractual Lease Commitments [Member] | ||
Loss reserve | $ 7,000 | $ 7,402 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other (Income) Expense, Net | ||
Equity interest in earnings of the JV (Note 4) | $ (684) | $ 0 |
Net (gain) loss on sales of assets | (3,699) | (1,602) |
Rent income | (73) | (101) |
Net (gain) loss on investments in deferred compensation program | (24) | (304) |
Other | (108) | (2) |
Other (income) expense, net | $ (4,588) | $ (2,009) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Income Taxes | ||
Unrecognized Tax Benefits | $ 18,579 | $ 23,526 |
Estimated decrease in liability for unrecognized tax benefits | 3,373 | |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 11,460 | 11,426 |
Accrued interest and penalties | $ 1,460 | $ 1,273 |
Income Taxes (Tax Expense and E
Income Taxes (Tax Expense and Effective Tax Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes | ||
Earnings before income taxes | $ 47,059 | $ 27,956 |
Income tax expense | $ 511 | $ 2,136 |
Effective tax rate | 1.10% | 7.60% |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans, Defined Benefit [Member] | ||
Net periodic retirement (benefit) cost | $ (240) | $ (143) |
United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Defined Benefit, Lump Sum Buyout Benefits Paid, Current Year | 670 | |
Net periodic retirement (benefit) cost | (214) | (132) |
Foreign Pension Plans, Defined Benefit [Member] | ||
Net periodic retirement (benefit) cost | (26) | (11) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Net periodic retirement (benefit) cost | 325 | $ 266 |
Scenario, Forecast [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Defined Benefit, Lump Sum Buyout Benefits Paid, Expected | $ 0 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Costs of Retirement Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Multiemployer Plan [Member] | ||
Company Costs | $ 68 | $ 130 |
Defined Contribution Plan [Member] | ||
Company Costs | $ 7,249 | $ 8,004 |
Retirement Benefits (Schedule75
Retirement Benefits (Schedule of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans, Defined Benefit [Member] | ||
Service cost | $ 611 | $ 860 |
Interest cost | 1,735 | 1,752 |
Expected return on plan assets | (3,273) | (3,239) |
Amortization of: Net (gains) losses | 591 | 388 |
Amortization of: Prior service (benefit) cost | 96 | 96 |
Net periodic retirement (benefit) cost | (240) | (143) |
Contributions paid - pensions | 365 | 389 |
United States Pension Plans of US Entity, Defined Benefit [Member] | ||
Service cost | 419 | 674 |
Interest cost | 1,439 | 1,317 |
Expected return on plan assets | (2,632) | (2,542) |
Amortization of: Net (gains) losses | 464 | 323 |
Amortization of: Prior service (benefit) cost | 96 | 96 |
Net periodic retirement (benefit) cost | (214) | (132) |
Contributions paid - pensions | 0 | 0 |
Foreign Pension Plans, Defined Benefit [Member] | ||
Service cost | 192 | 186 |
Interest cost | 296 | 435 |
Expected return on plan assets | (641) | (697) |
Amortization of: Net (gains) losses | 127 | 65 |
Amortization of: Prior service (benefit) cost | 0 | 0 |
Net periodic retirement (benefit) cost | (26) | (11) |
Contributions paid - pensions | 365 | 389 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Service cost | 4 | 5 |
Interest cost | 311 | 262 |
Amortization of: Net (gains) losses | 50 | 39 |
Amortization of: Prior service (benefit) cost | (40) | (40) |
Net periodic retirement (benefit) cost | 325 | 266 |
Contributions paid - other postretirement plans | $ 615 | $ 381 |
Retirement Benefits (Schedule76
Retirement Benefits (Schedule of estimated remaining cash contributions) (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2016USD ($) | |
United States Pension Plans of US Entity, Defined Benefit [Member] | |
Estimated future employer contributions in the currect fiscal year | $ 0 |
United Kingdom Plan, Defined Benefit [Member] | |
Estimated future employer contributions in the currect fiscal year | 323 |
Japan Plan, Defined Benefit [Member] | |
Estimated future employer contributions in the currect fiscal year | 0 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |
Estimated future employer contributions in the currect fiscal year | $ 3,424 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | Jan. 25, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 |
Payments for repurchases of common stock | $ 24,004 | $ 30,712 | ||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 6,820 | |||
Unrecognized compensation cost is expected to be recognized over a weighted-average period | 2 years 1 month 6 days | |||
Forfeiture rate, Board of Directors | 0.00% | |||
Forfeiture rate, non-Board of Directors | 9.00% | |||
Stock Options [Member] | ||||
Vested contractual term, in years | 10 years | |||
Vesting rate | 25.00% | |||
Shares granted, Number of Shares | 0 | |||
Vesting period, in years | 4 years | |||
Restricted Stock Award [Member] | ||||
Shares granted, Number of Shares | 0 | |||
Restricted stock awards granted | 24 | |||
Vesting period, in years | 4 years | |||
Service period for restricted stock award | 4 years | |||
2017 Plan [Member] | ||||
Stock-based compensation award date | Oct. 3, 2016 | |||
Stock-based compensation effective date | Sep. 14, 2016 | |||
Stock-based compensation, number of shares awarded, not granted | 773 | |||
Subsequent Event [Member] | 2017 Plan [Member] | ||||
Subsequent event, date | Jan. 25, 2017 | |||
2016 Authorization [Member] | ||||
Authorized repurchase amount | $ 500,000 | |||
Payments for repurchases of common stock | $ 24,004 | |||
Repurchase period in years | 3 years | |||
Purchases of treasury stock, number of shares | 350 | |||
10b5-1 Plan [Member] | ||||
Authorized repurchase amount | 125,000 | |||
Payments for repurchases of common stock | $ 30,712 | |||
Purchases of treasury stock, number of shares | 624 |
Stockholders' Equity (Activity
Stockholders' Equity (Activity for Stock Option Awards) (Details) shares in Thousands | 3 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stock-Based Compensation | |
Number of options, beginning balance | 4,944 |
Weighted Average Exercise Price Per Share, beginning balance | $ / shares | $ 35.35 |
Options granted, Number of options | 0 |
Options exercised, Number of options | (139) |
Options exercised, Weighted Average Exercise Price Per Share | $ / shares | $ 34.83 |
Options forfeited, Number of options | (13) |
Options forfeited, Weighted Average Exercise Price Per Share | $ / shares | $ 42.19 |
Number of options, ending balance | 4,792 |
Weighted Average Exercise Price Per Share, ending balance | $ / shares | $ 35.35 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Nonvested Stock Options) (Details) shares in Thousands | 3 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stock-Based Compensation | |
Number of Options, beginning balance | 2,075 |
Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ / shares | $ 14.90 |
Options granted, Number of options | 0 |
Options vested, Number of options | (758) |
Options vested, Weighted-Average Grant Date Fair Value Per Share | $ / shares | $ 15.24 |
Options forfeited, Number of options | (13) |
Options forfeited, Weighted-Average Grant Date Fair Value Per Share | $ / shares | $ 14.47 |
Number of Options, ending balance | 1,304 |
Weighted-Average Grant Date Fair Value Per Share, ending balance | $ / shares | $ 14.70 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Options Vested, Or Expected to Vest and Are Exercisable) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | |
Stock-Based Compensation | ||
Options outstanding, Number of options | 4,792 | 4,944 |
Options outstanding, Weighted-Average Exercise Price | $ 35.35 | $ 35.35 |
Options outstanding, Weighted-Average Remaining Life in Years | 5 years 10 months 24 days | |
Options outstanding, Aggregate Intrinsic Value | $ 161,511 | |
Options vested and exercisable, Number of options | 3,488 | |
Options vested and exercisable, Weighted-Average Exercise Price Per Share | $ 32.83 | |
Options vested and exercisable, Weighted-Average Remaining Life in Years | 5 years | |
Options vested and exercisable, Aggregate Intrinsic Value | $ 126,348 | |
Options vested and expected to vest, Number of options | 4,719 | |
Options vested and expected to vest, Weighted-Average Exercise Price Per Share | $ 35.25 | |
Options vested and to expected vest, Weighted-Average Remaining Life in Years | 5 years 9 months 18 days | |
Options vested and expected to vest, Aggregate Intrinsic Value | $ 159,525 |
Stockholders' Equity (Changes81
Stockholders' Equity (Changes in Restricted Stock Awards) (Details) shares in Thousands | 3 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stock Options [Member] | |
Shares granted, Number of Shares | 0 |
Restricted Stock Award [Member] | |
Number of shares, beginning balance | 24 |
Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ / shares | $ 39.43 |
Shares granted, Number of Shares | 0 |
Shares vested, Number of Shares | 0 |
Shares forfeited, Number of Shares | 0 |
Number of shares, ending balance | 24 |
Weighted-Average Grant Date Fair Value Per Share, ending balance | $ / shares | $ 39.43 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2016segment | |
Segment Information | |
Number of Reportable Segments | 2 |
Segment Information (Consolidat
Segment Information (Consolidated Net Sales and Earnings by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 442,894 | $ 445,110 |
Interest expense, net | (6,435) | (6,461) |
Consolidated earnings before income taxes | 47,059 | 27,956 |
Aerospace [Member] | ||
Net sales | 266,680 | 268,599 |
Segment earnings (loss) | 46,877 | 43,486 |
Industrial [Member] | ||
Net sales | 176,214 | 176,511 |
Segment earnings (loss) | 17,998 | 21,551 |
Total of Reporting Segments [Member] | ||
Segment earnings (loss) | 64,875 | 65,037 |
Unallocated Corporate [Member] | ||
Segment earnings (loss) | $ (11,381) | $ (30,620) |
Segment Information (Consolid84
Segment Information (Consolidated Total Assets by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Assets | $ 2,576,215 | $ 2,642,362 |
Other unallocated assets | 211,033 | 209,683 |
Property, plant and equipment, net | 877,077 | 876,350 |
Aerospace [Member] | ||
Assets | 1,611,306 | 1,637,522 |
Industrial [Member] | ||
Assets | 663,886 | 705,169 |
Total of Reporting Segments [Member] | ||
Assets | 2,275,192 | 2,342,691 |
Unallocated Corporate [Member] | ||
Property, plant and equipment, net | $ 89,990 | $ 89,988 |