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Accrued Liabilities | 9 Months Ended
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Jun. 30, 2020
Accrued Liabilities Current [Abstract] |
Accrued Liabilities | Note 16. Accrued liabilities
|  | June 30, |  |  | September 30, |
|  | 2020 |  |  | 2019 |
Salaries and other member benefits |  | $ | 53,094 |  |  | $ | 115,649 |
Warranties |  |  | 21,380 |  |  |  | 27,309 |
Interest payable |  |  | 6,182 |  |  |  | 13,808 |
Accrued retirement benefits |  |  | 3,617 |  |  |  | 3,587 |
Current portion of loss reserve on contractual lease commitments (1) |  |  | — |  |  |  | 1,245 |
Restructuring charges |  |  | 4,978 |  |  |  | 507 |
Taxes, other than income |  |  | 16,001 |  |  |  | 15,708 |
Net current contract liabilities (Note 3) |  |  | 30,222 |  |  |  | 27,891 |
Other |  |  | 26,821 |  |  |  | 22,423 |
|  | $ | 162,295 |  |  | $ | 228,127 |
| (1) | See Note 17, Other liabilities, for more information on loss reserve on contractual lease commitments.
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 June 30, |  |  | Nine-Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Warranties, beginning of period |  | $ | 21,770 |  |  | $ | 21,790 |  |  | $ | 27,309 |  |  | $ | 20,130 |
Impact from adoption of ASC 606 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 704 |
Expense, net of recoveries |  |  | 2,407 |  |  |  | 4,268 |  |  |  | 6,189 |  |  |  | 10,035 |
Reductions for settlement of previous warranty liabilities |  |  | (2,874 | ) |  |  | (3,315 | ) |  |  | (12,328 | ) |  |  | (7,864 | )
Foreign currency exchange rate changes |  |  | 77 |  |  |  | 105 |  |  |  | 210 |  |  |  | (157 | )
Warranties, end of period |  | $ | 21,380 |  |  | $ | 22,848 |  |  | $ | 21,380 |  |  | $ | 22,848 |
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. During the third quarter of fiscal year 2020, the Company committed to a plan of termination (the “Termination Plan”) in response to the ongoing global economic challenges resulting from the COVID-19 pandemic and its impact on the Company’s business. The Termination Plan involved the termination and/or furlough of employees and contractors at certain of the Company’s operating facilities, primarily in the United States. As a result of the Termination Plan, the Company incurred $19,040 of restructuring charges related to employee severance and benefits costs as of June 30, 2020, with the majority of the cash expenditures being paid by June 30, 2020. All of the restructuring charges recorded during the nine-months ended June 30, 2020 were recorded as nonsegment expenses. The summary of activity in accrued restructuring charges during the nine-months ended June 30, 2020 and June 30, 2019 are as follows:
|  |  |  |  |  | Period Activity |  |  |  |  |
|  | Balances as of October 1, 2019 |  |  | Charges (reductions) |  |  | Cash receipts (payments) |  |  | Foreign currency exchange rate changes |  |  | Non-cash activity |  |  | Balances as of June 30, 2020 |
Workforce management costs associated with: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Duarte plant relocation |  | $ | 440 |  |  | $ | — |  |  | $ | (440 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |
Industrial turbomachinery business realignment |  |  | 67 |  |  |  | — |  |  |  | (67 | ) |  |  | — |  |  |  | — |  |  |  | — |
COVID-19 pandemic |  |  | — |  |  |  | 19,040 |  |  |  | (14,052 | ) |  |  | (10 | ) |  |  | — |  |  |  | 4,978 |
Total |  | $ | 507 |  |  | $ | 19,040 |  |  | $ | (14,559 | ) |  | $ | (10 | ) |  | $ | — |  |  | $ | 4,978 |
|  |  |  |  |  | Period Activity |  |  |  |  |
|  | Balances as of October 1, 2018 |  |  | Charges (reductions) |  |  | Cash receipts (payments) |  |  | Foreign currency exchange rate changes |  |  | Non-cash activity |  |  | Balances as of June 30, 2019 |
Workforce management costs associated with: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Duarte plant relocation |  | $ | 12,504 |  |  | $ | — |  |  | $ | (7,908 | ) |  | $ | — |  |  | $ | — |  |  | $ | 4,596 |
Industrial turbomachinery business realignment |  |  | 4,018 |  |  |  | — |  |  |  | (3,251 | ) |  |  | — |  |  |  | — |  |  |  | 767 |
Total |  | $ | 16,522 |  |  | $ | — |  |  | $ | (11,159 | ) |  | $ | — |  |  | $ | — |  |  | $ | 5,363 |

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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://fasb.org/us-gaap/role/ref/legacyRef -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=120391452&loc=d3e13212-122682 + Details
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