Note 15. Accrued liabilities



	March 31,		September 30,
	2019		2018
Salaries and other member benefits	$	75,344	$	88,643
Warranties		21,680		20,130
Interest payable		15,174		18,611
Accrued retirement benefits		3,551		3,571
Current portion of loss reserve on contractual lease commitments		1,245		1,245
Restructuring charges		13,625		16,522
Taxes, other than income		23,764		21,128
Net current contract liabilities (Note 3)		30,531		9,659
Other		19,672		15,004
	$	204,586	$	194,513

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 as revenue is recognized 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 March 31,				Six-Months Ended March 31,
		2019		2018		2019		2018
Warranties, beginning of period	$	20,156	$	13,017	$	20,130	$	13,597
Impact from adoption of ASC 606 (Note 3)		-		-		594		-
Expense, net of recoveries		3,695		2,334		5,767		304
Reductions for settlement of previous warranty liabilities		(2,012)		(2,209)		(4,549)		(832)
Foreign currency exchange rate changes		(159)		141		(262)		214
Warranties, end of period	$	21,680	$	13,283	$	21,680	$	13,283

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 March 31,				Six-Months Ended March 31,
		2019		2018		2019		2018
Loss reserve on contractual lease commitments, beginning of period	$	3,814	$	4,717	$	3,931	$	5,270
Payments, net of sublease income		(432)		(239)		(549)		(792)
Loss reserve on contractual lease commitments, end of period	$	3,382	$	4,478	$	3,382	$	4,478

Other liabilities included $2,137 and $2,686 of accrued loss reserve on contractual lease commitments as of March 31, 2019 and September 30, 2018, 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 fiscal year ended September 30, 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 the then current market conditions. All of the restructuring charges recorded during the fiscal year ended September 30, 2018 were recorded as nonsegment expenses and are expected to be paid within one year of the balance sheet date, of which $491 was paid during fiscal year 2018 related to the Company’s industrial turbomachinery business realignment.

The summary of activity in accrued restructuring charges during the six-months ended March 31, 2019 is as follows:


				Period Activity
	Balances as of October 1, 2018			Charges (gains)	Cash receipts (payments)		Non-cash activity		Balances as of March 31, 2019
Workforce management costs associated with:
Duarte plant relocation	$	12,504	$	-	$	(648)	$	-	$	11,856
Industrial turbomachinery business realignment		4,018		-		(2,249)		-		1,769
Total	$	16,522	$	-	$	(2,897)	$	-	$	13,625