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Revenue | 9 Months Ended
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Jun. 30, 2020
Revenue From Contract With Customer [Abstract] |
Revenue | Note 3. Revenue Sales of Products Revenue from manufactured products and from maintenance, repair and overhaul (“MRO”) represented 86% and 12%, respectively, of Woodward’s net sales for the three-months ended June 30, 2020, compared to 84% and 13%, respectively, for the three-months ended June 30, 2019. Revenue from manufactured products and from MRO represented 86% and 12%, respectively, of Woodward’s net sales for both the nine-months ended June 30, 2020 and June 30, 2019. The amount of revenue recognized as point in time or over time follows:
|  | Three-Months Ended June 30, 2020 |  |  | Three-Months Ended June 30, 2019 |
|  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |
Point in time |  | $ | 98,228 |  |  | $ | 138,504 |  |  | $ | 236,732 |  |  | $ | 191,516 |  |  | $ | 147,194 |  |  | $ | 338,710 |
Over time |  |  | 208,266 |  |  |  | 78,828 |  |  |  | 287,094 |  |  |  | 307,259 |  |  |  | 106,036 |  |  |  | 413,295 |
Total net sales |  | $ | 306,494 |  |  | $ | 217,332 |  |  | $ | 523,826 |  |  | $ | 498,775 |  |  | $ | 253,230 |  |  | $ | 752,005 |
|  | Nine-Months Ended June 30, 2020 |  |  | Nine-Months Ended June 30, 2019 |
|  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |
Point in time |  | $ | 464,068 |  |  | $ | 463,498 |  |  | $ | 927,566 |  |  | $ | 563,713 |  |  | $ | 482,979 |  |  | $ | 1,046,692 |
Over time |  |  | 790,587 |  |  |  | 246,248 |  |  |  | 1,036,835 |  |  |  | 810,903 |  |  |  | 306,065 |  |  |  | 1,116,968 |
Total net sales |  | $ | 1,254,655 |  |  | $ | 709,746 |  |  | $ | 1,964,401 |  |  | $ | 1,374,616 |  |  | $ | 789,044 |  |  | $ | 2,163,660 |
Contract assets Customer receivables include amounts billed and currently due from customers as well as unbilled amounts (contract assets) and are included in “Accounts receivable” in Woodward’s Condensed Consolidated Balance Sheets. Amounts are billed in accordance with contractual terms, which are generally tied to shipment of the products to the customer, or as work progresses in accordance with contractual terms. Billed accounts receivable are typically due within 60 days. Unbilled amounts arise when the timing of billing differs from the timing of revenue recognized, such as when contract provisions require revenue to be recognized over time rather than at a point in time. Unbilled amounts primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to payment in accordance with contractual terms. Unbilled amounts are recorded as a contract asset when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Woodward’s contracts with customers generally have no financing components. Accounts receivable consisted of the following:
|  | June 30, 2020 |  |  | September 30, 2019 |
Billed receivables |  |  |  |  |  |  |  |
Trade accounts receivable |  | $ | 294,113 |  |  | $ | 381,942 |
Other (Chinese financial institutions) |  |  | 47,863 |  |  |  | 42,171 |
Less: Allowance for uncollectible amounts |  |  | (7,180 | ) |  |  | (7,908 | )
Net billed receivables |  |  | 334,796 |  |  |  | 416,205 |
Current unbilled receivables (contract assets), net |  |  | 202,719 |  |  |  | 175,324 |
Total accounts receivable, net |  | $ | 537,515 |  |  | $ | 591,529 |
As of June 30, 2020, “Other assets” on the Condensed Consolidated Balance Sheets includes $28,278 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $1,573 as of September 30, 2019. Unbilled receivables not expected to be invoiced and collected within a period of twelve months are primarily attributable to customer delays for deliveries on firm orders in the Aerospace segment due to the impacts of the COVID-19 pandemic. In coordination with its customers and when terms are considered favorable, Woodward transfers ownership to collect amounts due for outstanding accounts receivable to third parties in exchange for cash. When the transfer of accounts receivable meets the criteria of FASB ASC Topic 860-10, “Transfers and Servicing”, and are without recourse, the transaction is recognized as a sale and the accounts receivable is derecognized. Contract liabilities Contract liabilities consisted of the following:
|  | June 30, 2020 |  |  | September 30, 2019 |
|  | Current |  |  | Noncurrent |  |  | Current |  |  | Noncurrent |
Deferred revenue from material rights from GE joint venture formation |  | $ | 3,866 |  |  | $ | 235,602 |  |  | $ | 8,317 |  |  | $ | 230,588 |
Deferred revenue from advanced invoicing and/or prepayments from customers |  |  | 6,869 |  |  |  | 106 |  |  |  | 4,554 |  |  |  | 141 |
Liability related to customer supplied inventory |  |  | 17,799 |  |  |  | — |  |  |  | 13,396 |  |  |  | — |
Deferred revenue from material rights related to engineering and development funding |  |  | 1,688 |  |  |  | 120,467 |  |  |  | 1,624 |  |  |  | 106,436 |
Net contract liabilities |  | $ | 30,222 |  |  | $ | 356,175 |  |  | $ | 27,891 |  |  | $ | 337,165 |
Woodward recognized revenue of $8,356 in the three-months ended June 30, 2020 and $28,288 in the nine-months ended June 30, 2020 from contract liabilities balances recorded as of October 1, 2019, compared to $6,147 in the three-months ended June 30, 2019 and $26,459 in the nine-months ended June 30, 2019 from contract liabilities balances recorded as of October 1, 2018. Remaining performance obligations Remaining performance obligations related to the aggregate amount of the total contract transaction price of firm orders for which the performance obligation has not yet been recognized in revenue as of June 30, 2020 was $1,587,816, compared to $1,527,437 as of September 30, 2019, the majority of which in both periods relate to Woodward’s Aerospace segment. Woodward expects to recognize almost all of these remaining performance obligations within two years after June 30, 2020. Remaining performance obligations related to material rights that have not yet been recognized in revenue as of June 30, 2020 was $454,585, of which $1,049 is expected to be recognized in the remainder of fiscal year 2020, $7,307 is expected to be recognized in fiscal year 2021, and the balance is expected to be recognized thereafter. Woodward expects to recognize revenue from performance obligations related to material rights over the life of the underlying programs, which may be as long as forty years. Disaggregation of Revenue Woodward designs, produces and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in markets throughout the world. Woodward reports financial results for each of its Aerospace and Industrial reportable segments. Woodward further disaggregates its revenue from contracts with customers by primary market and by geographical area as Woodward believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Revenue by primary market for the Aerospace reportable segment was as follows:
|  | Three-Months Ended June 30, |  |  | Nine-Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Commercial OEM |  | $ | 63,804 |  |  | $ | 174,077 |  |  | $ | 367,080 |  |  | $ | 488,928 |
Commercial aftermarket |  |  | 68,332 |  |  |  | 124,863 |  |  |  | 328,302 |  |  |  | 375,919 |
Defense OEM |  |  | 111,667 |  |  |  | 147,696 |  |  |  | 392,494 |  |  |  | 372,538 |
Defense aftermarket |  |  | 62,691 |  |  |  | 52,139 |  |  |  | 166,779 |  |  |  | 137,231 |
Total Aerospace segment net sales |  | $ | 306,494 |  |  | $ | 498,775 |  |  | $ | 1,254,655 |  |  | $ | 1,374,616 |
Revenue by primary market for the Industrial reportable segment was as follows:
|  | Three-Months Ended June 30, |  |  | Nine-Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Reciprocating engines |  | $ | 158,804 |  |  | $ | 185,523 |  |  | $ | 497,012 |  |  | $ | 590,910 |
Industrial turbines |  |  | 53,486 |  |  |  | 53,740 |  |  |  | 164,663 |  |  |  | 155,439 |
Renewables1 |  |  | 5,042 |  |  |  | 13,967 |  |  |  | 48,071 |  |  |  | 42,695 |
Total Industrial segment net sales |  | $ | 217,332 |  |  | $ | 253,230 |  |  | $ | 709,746 |  |  | $ | 789,044 |
| (1) | Sales in the renewables market were discontinued as of May 1, 2020 following the closing of the divestiture of the disposal group (see Note 10, Sale of businesses).
The customers who account for approximately 10% or more of net sales of each of Woodward’s reportable segments for the three and nine-months ended June 30, 2020 are as follows:
|  | Customer
Aerospace |  | The Boeing Company, General Electric Company, Raytheon Company
Industrial |  | Rolls-Royce PLC, Weichai Westport, General Electric Company
Net sales by geographic area, as determined based on the location of the customer, were as follows:
|  | Three-Months Ended June 30, 2020 |  |  | Three-Months Ended June 30, 2019 |
|  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |
United States |  | $ | 245,347 |  |  | $ | 48,600 |  |  | $ | 293,947 |  |  | $ | 386,136 |  |  | $ | 53,380 |  |  | $ | 439,516 |
Germany |  |  | 5,348 |  |  |  | 40,753 |  |  |  | 46,101 |  |  |  | 18,319 |  |  |  | 50,943 |  |  |  | 69,262 |
Europe, excluding Germany |  |  | 17,675 |  |  |  | 49,500 |  |  |  | 67,175 |  |  |  | 42,849 |  |  |  | 66,936 |  |  |  | 109,785 |
China |  |  | 9,018 |  |  |  | 47,592 |  |  |  | 56,610 |  |  |  | 11,506 |  |  |  | 40,119 |  |  |  | 51,625 |
Asia, excluding China |  |  | 4,438 |  |  |  | 24,934 |  |  |  | 29,372 |  |  |  | 7,402 |  |  |  | 33,737 |  |  |  | 41,139 |
Other countries |  |  | 24,668 |  |  |  | 5,953 |  |  |  | 30,621 |  |  |  | 32,563 |  |  |  | 8,115 |  |  |  | 40,678 |
Total net sales |  | $ | 306,494 |  |  | $ | 217,332 |  |  | $ | 523,826 |  |  | $ | 498,775 |  |  | $ | 253,230 |  |  | $ | 752,005 |
|  | Nine-Months Ended June 30, 2020 |  |  | Nine-Months Ended June 30, 2019 |
|  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |
United States |  | $ | 965,368 |  |  | $ | 152,600 |  |  | $ | 1,117,968 |  |  | $ | 1,024,644 |  |  | $ | 156,836 |  |  | $ | 1,181,480 |
Germany |  |  | 43,737 |  |  |  | 145,132 |  |  |  | 188,869 |  |  |  | 56,136 |  |  |  | 178,032 |  |  |  | 234,168 |
Europe, excluding Germany |  |  | 97,262 |  |  |  | 165,403 |  |  |  | 262,665 |  |  |  | 131,243 |  |  |  | 191,415 |  |  |  | 322,658 |
China |  |  | 30,716 |  |  |  | 139,016 |  |  |  | 169,732 |  |  |  | 36,646 |  |  |  | 144,267 |  |  |  | 180,913 |
Asia, excluding China |  |  | 22,001 |  |  |  | 86,514 |  |  |  | 108,515 |  |  |  | 29,560 |  |  |  | 94,470 |  |  |  | 124,030 |
Other countries |  |  | 95,571 |  |  |  | 21,081 |  |  |  | 116,652 |  |  |  | 96,387 |  |  |  | 24,024 |  |  |  | 120,411 |
Total net sales |  | $ | 1,254,655 |  |  | $ | 709,746 |  |  | $ | 1,964,401 |  |  | $ | 1,374,616 |  |  | $ | 789,044 |  |  | $ | 2,163,660 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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