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Accrued Liabilities | 9 Months Ended
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Jun. 30, 2018
Accrued Liabilities |
Accrued Liabilities | Note 15. Accrued liabilities ﻿ ﻿
﻿ |  |  |  |  |
﻿ |  |  |  |  |
﻿ | June 30, |  | September 30,
﻿ | 2018 |  | 2017
﻿Salaries and other member benefits | $ | 63,743 |  | $ | 91,285
﻿Warranties |  | 19,802 |  |  | 13,597
﻿Interest payable |  | 8,856 |  |  | 9,626
﻿Current portion of acquired performance obligations and unfavorable contracts (1) |  | 1,627 |  |  | 1,627
﻿Accrued retirement benefits |  | 3,529 |  |  | 2,413
﻿Current portion of loss reserve on contractual lease commitments |  | 1,245 |  |  | 1,343
﻿Current portion of deferred income from JV formation (Note 5) |  | 6,414 |  |  | 6,451
﻿Deferred revenues |  | 2,689 |  |  | 4,625
﻿Restructuring charges |  | 16,574 |  |  | -
﻿Taxes, other than income |  | 18,012 |  |  | 14,401
﻿Other |  | 19,720 |  |  | 9,704
﻿ | $ | 162,211 |  | $ | 155,072
﻿
| (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” in the Condensed Consolidated Balance Sheets.
﻿ 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: ﻿ ﻿
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﻿ |  |  |  |  |  |  |  |  |  |  |
﻿ | Three-Months Ended June 30, |  | Nine-Months Ended June 30,
﻿ |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017
﻿Warranties, beginning of period | $ | 13,283 |  | $ | 15,041 |  | $ | 13,597 |  | $ | 15,993
﻿Increases due to acquisition of L'Orange |  | 6,045 |  |  | - |  |  | 6,045 |  |  | -
﻿Expense, net of recoveries |  | 2,696 |  |  | 2,746 |  |  | 3,000 |  |  | 6,808
﻿Reductions for settling warranties |  | (1,838) |  |  | (3,746) |  |  | (2,670) |  |  | (8,528)
﻿Foreign currency exchange rate changes |  | (384) |  |  | 257 |  |  | (170) |  |  | 25
﻿Warranties, end of period | $ | 19,802 |  | $ | 14,298 |  | $ | 19,802 |  | $ | 14,298
﻿ ﻿ ﻿ 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 and recognized a loss reserve against the estimated remaining contractual lease commitments, less anticipated sublease income. Changes in the loss reserve were as follows: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |
﻿ | Three-Months Ended June 30, |  | Nine-Months Ended June 30,
﻿ |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017
﻿Loss reserve on contractual lease commitments, beginning of period | $ | 4,478 |  | $ | 8,395 |  | $ | 5,270 |  | $ | 9,242
﻿Payments, net of sublease income |  | (267) |  |  | (382) |  |  | (1,059) |  |  | (1,229)
﻿Non-cash adjustments |  | - |  |  | (2,322) |  |  | - |  |  | (2,322)
﻿Loss reserve on contractual lease commitments, end of period | $ | 4,211 |  | $ | 5,691 |  | $ | 4,211 |  | $ | 5,691
Other liabilities included $2,966 and $3,927 of accrued loss reserve on contractual lease commitments as of June 30, 2018 and September 30, 2017, respectively, which are not expected to be settled or paid within twelve months of the respective balance sheet date. Restructuring charges In the second quarter of fiscal year 2018, the Company recorded restructuring charges totaling $17,013, the majority of which relate to the Company’s decision to relocate its Duarte, California operations to the Company’s newly renovated Drake Campus in Fort Collins, Colorado. The Duarte facility, which manufactures thrust reverser actuation systems, is part of the Company’s Aerospace segment. The remaining restructuring charges recognized during the first nine months of fiscal year 2018 consist of workforce management costs related to aligning the Company’s industrial turbomachinery business, which is part of the Company’s Industrial segment, with current market conditions. All of the restructuring charges recorded in the second quarter and first nine months of fiscal year 2018 were recorded as nonsegment expenses and are expected to be paid within one year of the balance sheet date. The summary of activity in accrued restructuring charges during the nine-months ended June 30, 2018 is as follows: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  | Period Activity |  |  |
﻿ | Balances as of October 1, 2017 |  |  | Charges (gains) |  | Cash receipts (payments) |  | Non-cash activity |  | Balances as of June 30, 2018
﻿Workforce management costs associated with: |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Duarte plant relocation | $ | - |  | $ | 12,504 |  | $ | - |  | $ | - |  | $ | 12,504
﻿Industrial turbomachinery business realignment |  | - |  |  | 4,509 |  |  | (439) |  |  | - |  |  | 4,070
﻿Total | $ | - |  | $ | 17,013 |  | $ | (439) |  | $ | - |  | $ | 16,574
In addition to the restructuring charges recognized in the first nine months of fiscal year 2018, the Company anticipates incurring additional costs associated with the relocation from Duarte to the Drake campus such as expenses associated with equipment relocation, employee training, accelerated depreciation, and increased labor expenses over the coming year. The Company anticipates these additional expenses will vary by quarter, but are expected to be approximately $12,000 in total. Although the Company plans to sell the Duarte facility’s land, building and building improvements, it is currently still occupying the Duarte facility and has recorded these as assets held for sale as of June 30, 2018 (see Note 11, Property, plant and equipment).

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- Definition The entire disclosure for accounts payable and accrued liabilities at the end of the reporting period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19(a),20,24) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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