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Segment Information | 12 Months Ended
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Sep. 30, 2019
Segment Information |
Segment Information | Note 22. Segment information Woodward serves the aerospace and industrial markets through its two reportable segments - Aerospace and Industrial. When appropriate, Woodward’s reportable segments are aggregations of Woodward’s operating segments. Woodward uses operating segment information internally to manage its business, including the assessment of operating segment performance and decisions for the allocation of resources between operating segments. Woodward L’Orange has been included in Woodward’s Industrial segment results since the Closing. The accounting policies of the reportable segments are the same as those of the Company. Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period. In connection with that assessment, Woodward generally excludes matters such as certain charges for restructuring, interest income and expense, certain gains and losses from asset dispositions, or other non-recurring and/or non-operationally related expenses. A summary of consolidated net sales and earnings by segment follows:
| Year Ended September 30,
| 2019 |  | 2018 |  | 2017
Segment external net sales: |  |  |  |  |  |  |  |
Aerospace | $ | 1,880,520 |  | $ | 1,557,988 |  | $ | 1,342,339
Industrial |  | 1,019,677 |  |  | 767,885 |  |  | 756,346
Total consolidated net sales | $ | 2,900,197 |  | $ | 2,325,873 |  | $ | 2,098,685
Segment earnings: |  |  |  |  |  |  |  |
Aerospace (2) | $ | 389,126 |  | $ | 308,553 |  | $ | 264,362
Industrial (2) |  | 93,521 |  |  | 49,894 |  |  | 80,659
Nonsegment expenses (1)(2) |  | (119,447) |  |  | (100,078) |  |  | (58,359)
Interest Expense, net (2) |  | (42,588) |  |  | (38,791) |  |  | (33,915)
Consolidated earnings before income taxes | $ | 320,612 |  | $ | 219,578 |  | $ | 252,747
(1)Nonsegment expenses for the fiscal year ended September 30, 2018 includes restructuring charges of $17,013. See Note 15, Accrued liabilities for further details. (2)Segment earnings includes the impact of retrospectively applying ASU 2017-07. See Note 2, New Accounting Standards for further details. Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets, consolidated depreciation and amortization, and consolidated capital expenditures follows:
| Year Ended September 30,
| 2019 |  | 2018 |  | 2017
Segment assets: |  |  |  |  |  |  |  |
Aerospace | $ | 1,900,657 |  | $ | 1,805,892 |  | $ | 1,722,789
Industrial |  | 1,561,441 |  |  | 1,642,462 |  |  | 695,264
Unallocated corporate property, plant and equipment, net |  | 114,887 |  |  | 102,083 |  |  | 104,755
Other unallocated assets |  | 379,541 |  |  | 240,212 |  |  | 234,301
Consolidated total assets | $ | 3,956,526 |  | $ | 3,790,649 |  | $ | 2,757,109
Segment depreciation and amortization: |  |  |  |  |  |  |  |
Aerospace | $ | 60,710 |  | $ | 54,828 |  | $ | 47,277
Industrial |  | 71,173 |  |  | 51,695 |  |  | 24,421
Unallocated corporate amounts |  | 10,121 |  |  | 9,608 |  |  | 9,219
Consolidated depreciation and amortization | $ | 142,004 |  | $ | 116,131 |  | $ | 80,917
Segment capital expenditures: |  |  |  |  |  |  |  |
Aerospace | $ | 56,525 |  | $ | 98,358 |  | $ | 62,812
Industrial |  | 30,195 |  |  | 17,109 |  |  | 12,189
Unallocated corporate amounts |  | 12,346 |  |  | 11,673 |  |  | 17,335
Consolidated capital expenditures | $ | 99,066 |  | $ | 127,140 |  | $ | 92,336
Sales to The Boeing Company (“Boeing”) were made by Woodward’s Aerospace segment and totaled approximately 15% of net sales in fiscal year 2019, 12% of net sales in fiscal year 2018, and 11% of net sales in fiscal year 2017. Sales to GE were made by both of Woodward’s reportable segments and totaled approximately 14% of net sales in fiscal year 2019, and 16% of net sales in both fiscal years 2018 and 2017. Accounts receivable from Boeing totaled approximately 14% of accounts receivable at September 30, 2019 and 14% of accounts receivable at September 30, 2018. Accounts receivable from GE totaled approximately 8% of accounts receivable at both September 30, 2019 and September 30, 2018. U.S. Government related sales from Woodward’s reportable segments were as follows:
| Direct U.S. Government Sales |  | Indirect U.S. Government Sales |  | Total U.S. Government Related Sales
Fiscal year ended September 30, 2019 |  |  |  |  |  |  |  |
Aerospace | $ | 118,334 |  | $ | 545,306 |  | $ | 663,640
Industrial |  | 4,491 |  |  | 13,810 |  |  | 18,301
Total net external sales | $ | 122,825 |  | $ | 559,116 |  | $ | 681,941
Percentage of total net sales |  | 4% |  |  | 19% |  |  | 23%
Fiscal year ended September 30, 2018 |  |  |  |  |  |  |  |
Aerospace | $ | 84,252 |  | $ | 429,386 |  | $ | 513,638
Industrial |  | 2,547 |  |  | 8,658 |  |  | 11,205
Total net external sales | $ | 86,799 |  | $ | 438,044 |  | $ | 524,843
Percentage of total net sales |  | 4% |  |  | 19% |  |  | 23%
Fiscal year ended September 30, 2017 |  |  |  |  |  |  |  |
Aerospace | $ | 106,685 |  | $ | 362,536 |  | $ | 469,221
Industrial |  | 3,726 |  |  | 10,814 |  |  | 14,540
Total net external sales | $ | 110,411 |  | $ | 373,350 |  | $ | 483,761
Percentage of total net sales |  | 5% |  |  | 18% |  |  | 23%
Accounts receivable from the U.S. Government totaled approximately 5% of accounts receivable at September 30, 2019 and 3% of accounts receivable at September 30, 2018. For net sales by geographical area for the year ended September 30, 2019, refer to Note 3, Revenue. Net sales by geographical area for the years ended September 30, 2018 and 2017, as determined by the location of the customer invoiced, were as follows:
| Year Ended September 30,
| 2018 |  | 2017
United States | $ | 1,350,708 |  | $ | 1,211,902
Germany |  | 230,834 |  |  | 173,180
Europe, excluding Germany |  | 323,109 |  |  | 305,545
Asia |  | 283,031 |  |  | 288,252
Other countries |  | 138,191 |  |  | 119,806
Consolidated net sales | $ | 2,325,873 |  | $ | 2,098,685
Property, plant, and equipment, net by geographical area, as determined by the physical location of the assets, were as follows:
| At September 30,
| 2019 |  | 2018
United States | $ | 926,370 |  | $ | 922,734
Germany |  | 107,975 |  |  | 111,595
Other countries |  | 24,430 |  |  | 25,676
Consolidated property, plant and equipment, net | $ | 1,058,775 |  | $ | 1,060,005

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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