Note 21. Supplemental quarterly financial data (Unaudited)

Quarterly results for the fiscal years ended September 30, 2016 and September 30, 2015 follow:



	2016 Fiscal Quarters
	First (1)		Second		Third		Fourth
Net sales	$	445,110	$	479,382	$	507,664	$	590,922
Gross margin (2)		111,733		133,243		136,942		165,620
Earnings before income taxes		27,956		54,366		63,408		80,756
Net earnings		25,820		40,824		51,047		63,147
Earnings per share
Basic earnings per share		0.41		0.66		0.83		1.03
Diluted earnings per share		0.40		0.65		0.81		0.99
Cash dividends per share		0.10		0.11		0.11		0.11

	2015 Fiscal Quarters
	First		Second		Third		Fourth
Net sales	$	487,646	$	493,222	$	494,810	$	562,625
Gross margin (2)		143,886		137,620		143,389		159,690
Earnings before income taxes		57,072		57,591		57,559		68,727
Net earnings		43,784		43,855		43,753		50,060
Earnings per share
Basic earnings per share		0.67		0.67		0.68		0.79
Diluted earnings per share		0.66		0.66		0.66		0.77
Cash dividends per share		0.08		0.10		0.10		0.10

Notes:

Results for the first quarter of fiscal year 2016 include special charges totaling approximately $16,100 related to Woodward's efforts to consolidate facilities, reduce costs and address current market conditions.

Gross margin represents net sales less cost of goods sold excluding amortization expense.

Quarterly results by segment for the fiscal years ended September 30, 2016 and September 30, 2015 follow:



	2016 Fiscal Quarters
	First		Second		Third		Fourth
Segment external net sales:
Aerospace	$	268,599	$	290,690	$	308,582	$	365,305
Industrial		176,511		188,692		199,082		225,617
Total	$	445,110	$	479,382	$	507,664	$	590,922
Segment earnings:
Aerospace	$	43,486	$	50,578	$	57,726	$	80,376
Industrial		21,551		19,469		21,963		19,254
Total	$	65,037	$	70,047	$	79,689	$	99,630
Earnings reconciliation:
Total segment earnings	$	65,037	$	70,047	$	79,689	$	99,630
Nonsegment expenses (1)		(30,620)		(9,888)		(10,369)		(12,289)
Interest expense, net		(6,461)		(5,793)		(5,912)		(6,585)
Consolidated earnings before income taxes	$	27,956	$	54,366	$	63,408	$	80,756

	2015 Fiscal Quarters
	First		Second		Third		Fourth
Segment external net sales:
Aerospace	$	255,770	$	281,426	$	288,480	$	335,207
Industrial		231,876		211,796		206,330		227,418
Total	$	487,646	$	493,222	$	494,810	$	562,625
Segment earnings:
Aerospace	$	35,793	$	45,628	$	46,362	$	59,964
Industrial		39,268		27,224		30,619		29,530
Total	$	75,061	$	72,852	$	76,981	$	89,494
Earnings reconciliation:
Total segment earnings	$	75,061	$	72,852	$	76,981	$	89,494
Nonsegment expenses		(12,167)		(10,153)		(13,564)		(13,478)
Interest expense, net		(5,822)		(5,108)		(5,858)		(7,289)
Consolidated earnings before income taxes	$	57,072	$	57,591	$	57,559	$	68,727

Notes:

The results for Nonsegement expenses for the first quarter of fiscal year 2016 include special charges totaling approximately $16,100 related to Woodward's efforts to consolidate facilities, reduce costs and address current market conditions.