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Accrued Liabilities
9 Months Ended
Jun. 30, 2022
Accrued Liabilities Current [Abstract]  
Accrued Liabilities

Note 15.  Accrued liabilities

 

 

 

June 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

Salaries and other member benefits

 

$

66,191

 

 

$

54,497

 

Warranties

 

 

14,645

 

 

 

17,481

 

Interest payable

 

 

5,568

 

 

 

14,822

 

Accrued retirement benefits

 

 

2,723

 

 

 

2,825

 

Net current contract liabilities

 

 

25,850

 

 

 

29,527

 

Current portion of restructuring charges

 

 

4,503

 

 

 

4,495

 

Taxes, other than income

 

 

19,563

 

 

 

19,453

 

Purchase of treasury stock in transit

 

 

 

 

 

12,516

 

Other

 

 

21,658

 

 

 

27,523

 

 

 

$

160,701

 

 

$

183,139

 

 

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,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Warranties, beginning of period

 

$

12,984

 

 

$

18,576

 

 

$

17,481

 

 

$

18,972

 

Expense, net of recoveries

 

 

3,021

 

 

 

(798

)

 

 

3,243

 

 

 

214

 

(Reductions) additions for settlement of previous warranty liabilities

 

 

(1,239

)

 

 

(477

)

 

 

(5,908

)

 

 

(1,928

)

Foreign currency exchange rate changes

 

 

(121

)

 

 

113

 

 

 

(171

)

 

 

156

 

Warranties, end of period

 

$

14,645

 

 

$

17,414

 

 

$

14,645

 

 

$

17,414

 

 

 

Restructuring charges

In fiscal year 2021, the Company recognized restructuring charges relating to workforce management costs to align the Company’s hydraulics and engine systems businesses with current market conditions.  During such fiscal year, restructuring charges of $5,008 were recorded as nonsegment expenses, the majority of which are expected to be paid within twelve months.

In fiscal year 2020, the Company committed to a plan of termination (the “Termination Plan”), as well as other cost savings actions, 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 and other related actions, the Company incurred $23,673 of restructuring charges for employee severance and benefits costs.  All of the restructuring charges recorded during the fiscal year ended September 30, 2020 were recorded as nonsegment expenses and were paid as of September 30, 2021.

The summary of activity in accrued restructuring charges during the nine-months ended June 30, 2022 and 2021 are as follows:

 

 

 

 

 

 

Period Activity

 

 

 

 

 

 

 

Balances as of September 30, 2021

 

 

Charges

 

 

Payments

 

 

Foreign currency exchange rate changes

 

 

Non-cash

activity

 

 

Balances as of June 30, 2022

 

Workforce management costs associated with:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics Systems Realignment

 

$

3,758

 

 

$

 

 

$

(505

)

 

$

 

 

$

 

 

$

3,253

 

Engine Systems Realignment

 

 

1,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,250

 

Total

 

$

5,008

 

 

$

 

 

$

(505

)

 

$

 

 

$

 

 

$

4,503

 

 

 

 

 

 

 

 

Period Activity

 

 

 

 

 

 

 

Balances as of September 30, 2020

 

 

Charges

 

 

Payments

 

 

Foreign currency exchange rate changes

 

 

Non-cash

activity

 

 

Balances as of June 30, 2021

 

Workforce management costs associated with:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19 pandemic

 

$

3,395

 

 

$

 

 

$

(2,409

)

 

$

180

 

 

$

(1,166

)

 

$

 

Total

 

$

3,395

 

 

$

 

 

$

(2,409

)

 

$

180

 

 

$

(1,166

)

 

$