Accrued Liabilities

3 Months Ended

Dec. 31, 2014

Note 13. Accrued liabilities



	December 31,		September 30,
	2014		2014
Salaries and other member benefits	$	48,437	$	95,031
Warranties		15,876		16,916
Interest payable		6,169		12,487
Current portion of acquired performance obligations and unfavorable contracts (1)		11,880		16,432
Accrued retirement benefits		2,279		2,286
Deferred revenues		9,276		6,108
Taxes, other than income		9,148		8,557
Other		13,505		14,914
	$	116,570	$	172,731

(1)

In connection with Woodward’s acquisition of GE Aviation Systems LLC’s (the “Seller”) thrust reverse actuation systems business located in Duarte, California (the “Duarte Business”) 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, 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,
		2014		2013
Warranties, beginning of period	$	16,916	$	15,224
Expense		2,283		2,520
Reductions for settling warranties		(2,959)		(1,703)
Foreign currency exchange rate changes		(364)		195
Warranties, end of period	$	15,876	$	16,236