WOODWARD, INC., 10-K filed on 11/26/2024
Annual Report
v3.24.3
Document and Entity Information - USD ($)
 12 Months Ended
Sep. 30, 2024
Nov. 25, 2024
Mar. 31, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Sep. 30, 2024    
Document Transition Report false    
Entity File Number 000-08408    
Entity Registrant Name WOODWARD, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 36-1984010    
Entity Address, Address Line One 1081 Woodward Way    
Entity Address, City or Town Fort Collins    
Entity Address, State or Province CO    
Entity Address, Postal Zip Code 80524    
City Area Code 970    
Local Phone Number 482-5811    
Title of 12(b) Security Common Stock, par value $0.001455 per share    
Trading Symbol WWD    
Security Exchange Name NASDAQ    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 6,154,360
Entity Common Stock, Shares Outstanding   59,130,924  
Amendment Flag false    
Entity Central Index Key 0000108312    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --09-30    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Document Fiscal Year Focus 2024    
ICFR Auditor Attestation Flag true    
Documents Incorporated by Reference

Portions of our proxy statement for the Annual Meeting of Stockholders to be held virtually on January 29, 2025, are incorporated by reference into Parts II and III of this Form 10-K, to the extent indicated.

    
Auditor Name Deloitte & Touche LLP    
Auditor Location Denver, Colorado    
Auditor Firm ID 34    
Auditor Opinion [Text Block]

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Woodward, Inc. and subsidiaries (the "Company") as of September 30, 2024 and 2023, the related consolidated statements of earnings, comprehensive earnings, cash flows, and stockholders' equity for each of the three years in the period ended September 30, 2024, and the related notes (collectively referred to as the "financial statements"). We also have audited the Company’s internal control over financial reporting as of September 30, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of September 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended September 30, 2024, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

Basis for Opinions

The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded

as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Intangible Assets, net – Trade name — Refer to Notes 1 and 14 to the financial statements

Critical Audit Matter Description

The Company has one indefinite-lived intangible asset consisting of the Woodward L’Orange trade name (“trade name”). As of September 30, 2024, the carrying value of the trade name is $64.8 million. The trade name is tested for impairment on an annual basis and more often if an event occurs or circumstances change that indicate the fair value of the trade name may be below its carrying amount. The Company completed its annual impairment test of the trade name as of July 31, 2024. The results of the impairment test indicated the estimated fair value of the trade name was in excess of its carrying value and, accordingly, no impairment existed.

The fair value of the trade name was determined using discounted cash flows based on the relief from royalty method under the income approach. This method incorporates various estimates and assumptions, the most significant being projected revenue growth rates, royalty rates and the present value of the forecasted cash flows based on the discount rate and terminal growth rate. The Company projects revenue growth rates and cash flows based on Woodward L’Orange’s current operational results, expected performance and operational strategies over a five-year period. The terminal growth rate of the expected cash flow is applied after five years. These projections are adjusted to reflect current economic conditions and demand for certain products and require considerable management judgment. Changes in these estimates and assumptions can have a significant impact on the fair value.

We identified the fair value of the trade name as a critical audit matter because of the significant judgments and assumptions management makes related to the projection of revenue growth rates and the selection of the discount rate, terminal growth rate, and royalty rate. This required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s projection of revenue growth rates and selection of the discount rate, terminal growth rate and royalty rate.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the projection of revenue growth rates and selection of the discount rate, terminal growth rate, and royalty rate used in determining the fair value of the trade name included the following, among others:

•
We tested the effectiveness of controls over the fair value of the trade name, including those over the projection of revenue growth rates and the selection of the discount rate, terminal growth rate, and royalty rate.
•
With the assistance of our fair value specialists, we evaluated the reasonableness of the discount rate, terminal growth rate, and royalty rate by:
o
Testing the source information underlying the determination of the discount rate, terminal growth rate, and royalty rate and recalculating the mathematical accuracy of management’s calculation of the discount rate
o
Developing a range of independent estimates of the discount rate and terminal growth rate based on market inputs and comparing those to the discount and terminal growth rates selected by management
o
Comparing the royalty rate from comparable licensing agreements to the rate selected by management
•
Searching for any events which could adversely impact the fair value of the brand.
•
We evaluated the reasonableness of management’s projected revenue growth rates by:
o
Comparing management’s projections to:
▪
Historical revenue results for Woodward L’Orange
▪
Internal communications to management and the board of directors
▪
Analyst and industry reports
▪
Peer company forecasts
o
Considering the impact of changes in management’s projections from the July 31, 2024 annual assessment date to September 30, 2024 by comparing actual results for the period to management projections within the original valuation model.
•
We evaluated whether a triggering event existed subsequent to management’s impairment testing date through the balance sheet date.
    
v3.24.3
Consolidated Statements of Earnings - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Income Statement [Abstract]      
Net sales $ 3,324,249 $ 2,914,566 $ 2,382,790
Costs and expenses:      
Cost of goods sold 2,447,770 2,236,983 1,857,485
Selling, general and administrative expenses 307,499 269,692 203,005
Research and development costs 140,676 132,095 119,782
Restructuring activities 0 5,172 (3,420)
Interest expense 47,959 47,898 34,545
Interest income (6,458) (2,751) (1,814)
Other (income) expense, net (67,168) (50,291) (26,691)
Total costs and expenses 2,870,278 2,638,798 2,182,892
Earnings before income taxes 453,971 275,768 199,898
Income tax expense 81,000 43,400 28,200
Net earnings $ 372,971 $ 232,368 $ 171,698
Earnings per share:      
Basic earnings per share $ 6.21 $ 3.88 $ 2.79
Diluted earnings per share $ 6.01 $ 3.78 $ 2.71
Weighted Average Common Shares Outstanding:      
Basic 60,076 59,908 61,517
Diluted 62,084 61,482 63,254
v3.24.3
Consolidated Statements of Comprehensive Earnings - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Consolidated Statements of Comprehensive Earnings      
Net earnings $ 372,971 $ 232,368 $ 171,698
Other comprehensive earnings:      
Foreign currency translation adjustments 30,311 21,180 (63,026)
Net (loss) gain on foreign currency transactions designated as hedges of net investments (2,381) (3,090) 7,206
Taxes on changes on foreign currency translation adjustments 334 1,011 2,230
Foreign currency translation and transactions adjustments, net of tax 28,264 19,101 (53,590)
Unrealized (loss) gain on fair value adjustment of derivative instruments (18,551) (36,587) 89,048
Reclassification of net realized losses (gains) on derivatives to earnings 23,093 33,224 (68,880)
Taxes on changes on derivative transactions 0 (141) (786)
Derivative adjustments, net of tax 4,542 (3,504) 19,382
Minimum retirement benefit liability adjustments:      
Net gain arising during the period 7,826 9,401 6,318
Prior service cost arising during the period (1,121) 0 0
Amortization of:      
Prior service cost 721 720 1,004
Net (gain) loss (1,049) (823) 720
Foreign currency exchange rate changes on minimum retirement benefit liabilities 110 247 1,158
Taxes on changes on minimum retirement benefit liability adjustments (1,320) (3,250) (1,936)
Pension and other postretirement benefit plan adjustments, net of tax 5,167 6,295 7,264
Total comprehensive earnings $ 410,944 $ 254,260 $ 144,754
v3.24.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Current assets:    
Cash and cash equivalents $ 282,270 $ 137,447
Accounts receivable, less allowance for uncollectible amounts of $7,738 and $5,847, respectively 770,066 749,859
Inventories 609,092 517,843
Income taxes receivable 22,016 14,120
Other current assets 60,167 50,183
Total current assets 1,743,611 1,469,452
Property, plant and equipment, net 940,715 913,094
Goodwill 806,643 791,468
Intangible assets, net 440,419 452,363
Deferred income tax assets 84,392 58,550
Other assets 353,135 325,276
Total assets 4,368,915 4,010,203
Current liabilities:    
Short-term debt 217,000 0
Current portion of long-term debt 85,719 75,817
Accounts payable 287,457 234,328
Income taxes payable 40,692 44,435
Accrued liabilities 292,642 262,616
Total current liabilities 923,510 617,196
Long-term debt, less current portion 569,751 645,709
Deferred income tax liabilities 121,858 132,819
Other liabilities 577,380 543,490
Total liabilities 2,192,499 1,939,214
Commitments and contingencies (Note 22)
Stockholders' equity:    
Preferred stock, par value $0.003 per share, 10,000 shares authorized, no shares issued 0 0
Common stock, par value $0.001455 per share, 150,000 shares authorized, 72,960 shares issued 106 106
Additional paid-in capital 396,554 327,941
Accumulated other comprehensive losses (32,698) (70,671)
Deferred compensation 2,662 2,776
Retained earnings 3,223,259 2,908,574
Stockholders' equity 3,589,883 3,168,726
Treasury stock at cost, 13,787 shares and 13,070 shares, respectively (1,410,805) (1,094,961)
Treasury stock held for deferred compensation, at cost, 45 shares and 55 shares, respectively (2,662) (2,776)
Total stockholders' equity 2,176,416 2,070,989
Total liabilities and stockholders' equity $ 4,368,915 $ 4,010,203
v3.24.3
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Current assets:    
Allowance, accounts receivable $ 7,738 $ 5,847
Stockholders' equity:    
Preferred stock, par value $ 0.003 $ 0.003
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Common stock, par value $ 0.001455 $ 0.001455
Common stock, shares authorized 150,000,000 150,000,000
Common stock, shares issued 72,960,000 72,960,000
Treasury stock, shares 13,787,000 13,070,000
Treasury stock held for deferred compensation, shares 45,000 55,000
v3.24.3
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Cash flows from operating activities:      
Net earnings $ 372,971 $ 232,368 $ 171,698
Adjustments to reconcile net earnings to net cash provided by operating activities:      
Depreciation and amortization 116,170 119,743 120,628
Net (gain) loss on sales of assets and businesses (457) 1,491 (1,775)
Stock-based compensation 33,052 23,383 20,109
Deferred income taxes (44,606) (40,155) (23,226)
Changes in operating assets and liabilities:      
Trade accounts receivable 35,799 (113,119) (54,380)
Unbilled receivables (contract assets) (51,168) (23,879) (44,451)
Costs to fulfill a contract (3,718) (11,544) (17,118)
Inventories (84,944) 3,234 (110,196)
Accounts payable and accrued liabilities 63,655 67,447 122,963
Contract liabilities 31,538 20,115 12,466
Income taxes (18,069) (3,652) 29,644
Retirement benefit obligations (1,837) (909) (4,424)
Other (9,297) 34,020 (28,300)
Net cash provided by operating activities 439,089 308,543 193,638
Cash flows from investing activities:      
Payments for purchase of property, plant, and equipment (96,280) (76,500) (52,868)
Proceeds from sale of assets 2,292 488 43
Proceeds from business divestiture 1,800   6,000
Payments for business acquisition, net of cash acquired   878 (21,549)
Proceeds from sales of short-term investments 9,738 7,692 12,557
Payments for purchases of short-term investments (6,767) (6,109) (9,632)
Net cash used in investing activities (89,217) (73,551) (65,449)
Cash flows from financing activities:      
Cash dividends paid (58,286) (51,027) (44,978)
Proceeds from sales of treasury stock 89,875 50,749 21,897
Payments for repurchases of common stock (390,819) (126,380) (485,300)
Borrowings on revolving lines of credit and short-term borrowings 2,962,800 2,323,500 952,000
Payments on revolving lines of credit and short-term borrowings (2,745,800) (2,390,300) (885,200)
Payments of debt financing costs   (2,236)  
Payments of long-term debt and finance lease obligations (75,817) (779) (797)
Net cash used in financing activities (218,047) (196,473) (442,378)
Effect of exchange rate changes on cash and cash equivalents 12,998 (8,916) (26,429)
Net change in cash and cash equivalents 144,823 29,603 (340,618)
Cash and cash equivalents at beginning of year 137,447 107,844 448,462
Cash and cash equivalents at end of year $ 282,270 $ 137,447 $ 107,844
v3.24.3
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Treasury Stock at Cost [Member]
Treasury Stock Held for Deferred Compensation [Member]
Additional Paid-in Capital [Member]
Foreign Currency Translation Adjustments [Member]
Unrealized Derivative Gains (Losses) [Member]
Minimum Retirement Benefit Liability Adjustments [Member]
Total Accumulated Other Comprehensive (Loss) Earnings [Member]
Deferred Compensation [Member]
Retained Earnings [Member]
Balances at Sep. 30, 2021 $ 2,214,781 $ 106 $ (581,954) $ (7,949) $ 261,735 $ (32,904) $ (25,597) $ (7,118) $ (65,619) $ 7,949 $ 2,600,513
Net Income (Loss) 171,698                   171,698
Other comprehensive earnings (loss), net of tax (26,944)         (53,590) 19,382 7,264 (26,944)    
Cash dividends paid (44,978)                   (44,978)
Purchases of treasury stock (472,784)   (472,784)                
Sales of treasury stock 22,108   20,977   1,131            
Common shares issued for benefit plans 17,132   6,567   10,565            
Stock-based compensation 20,109       20,109            
Purchases of stock by deferred compensation       (252)           252  
Distribution of stock from deferred compensation       1,420           (1,420)  
Balances at Sep. 30, 2022 1,901,122 106 (1,027,194) (6,781) 293,540 (86,494) (6,215) 146 (92,563) 6,781 2,727,233
Net Income (Loss) 232,368                   232,368
Other comprehensive earnings (loss), net of tax 21,892         19,101 (3,504) 6,295 21,892    
Cash dividends paid (51,027)                   (51,027)
Purchases of treasury stock (126,682)   (126,380)   (302)            
Sales of treasury stock 50,467   50,090   377            
Common shares issued for benefit plans 19,466   8,523   10,943            
Stock-based compensation 23,383       23,383            
Purchases of stock by deferred compensation       (178)           178  
Distribution of stock from deferred compensation       4,183           (4,183)  
Balances at Sep. 30, 2023 2,070,989 106 (1,094,961) (2,776) 327,941 (67,393) (9,719) 6,441 (70,671) 2,776 2,908,574
Net Income (Loss) 372,971                   372,971
Other comprehensive earnings (loss), net of tax 37,973         28,264 4,542 5,167 37,973    
Cash dividends paid (58,286)                   (58,286)
Purchases of treasury stock (393,593)   (390,819)   (2,774)            
Sales of treasury stock 91,421   67,053   24,368            
Common shares issued for benefit plans 21,889   7,922   13,967            
Stock-based compensation 33,052       33,052            
Purchases of stock by deferred compensation       (173)           173  
Distribution of stock from deferred compensation       287           (287)  
Balances at Sep. 30, 2024 $ 2,176,416 $ 106 $ (1,410,805) $ (2,662) $ 396,554 $ (39,129) $ (5,177) $ 11,608 $ (32,698) $ 2,662 $ 3,223,259
v3.24.3
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]      
Cash dividends per share $ 0.97 $ 0.85 $ 0.7325
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Pay vs Performance Disclosure      
Net Income (Loss) $ 372,971 $ 232,368 $ 171,698
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Operations and Summary of Significant Accounting Policies
 12 Months Ended
Sep. 30, 2024
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Operations and Summary of Significant Accounting Policies

Note 1. Operations and summary of significant accounting policies

Basis of presentation

The Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Woodward, Inc. and its subsidiaries (collectively “Woodward” or “the Company”).

Nature of operations

Woodward is an independent designer, manufacturer, and service provider of energy control and optimization solutions. Woodward designs, produces, and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in challenging environments. Woodward has significant production and assembly facilities primarily in the United States, Europe, and Asia, and promotes its products and services through its worldwide locations.

Woodward’s strategic focus is providing energy control and optimization solutions for the aerospace and industrial markets. The precise and efficient control of energy, including motion, fluid, combustion, and electrical energy, is a growing requirement in the markets Woodward serves. Woodward’s customers look to it to optimize the efficiency, emissions, and operation of power equipment in both commercial and defense operations. Woodward’s core technologies leverage well across its markets and customer applications, enabling it to develop and integrate cost-effective and state-of-the-art fuel, combustion, fluid, actuation, and electronic systems. Woodward focuses its solutions and services primarily on serving original equipment manufacturers (“OEMs”) and equipment packagers, partnering with them to bring superior component and system solutions to their demanding applications. Woodward also provides aftermarket repair, maintenance, replacement, and other service support for its installed products.

Woodward’s components and integrated systems optimize performance of commercial aircraft, defense aircraft, military ground vehicles and other equipment, gas and steam turbines, industrial diesel, gas, biodiesel and dual-fuel reciprocating engines, and electrical power systems. Woodward’s innovative motion, fluid, combustion, and electrical energy control systems help its customers offer more cost-effective, cleaner, and more reliable equipment.

Summary of significant accounting policies

Principles of consolidation: These Consolidated Financial Statements are prepared in accordance with U.S. GAAP and include the accounts of Woodward and its wholly and majority-owned subsidiaries. Transactions within and between these companies are eliminated.

Use of estimates: The preparation of the Consolidated Financial Statements requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, at the date of the financial statements and the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures. Significant estimates include allowances for uncollectible amounts, net realizable value of inventories, customer rebates earned, useful lives of property and identifiable intangible assets, the evaluation of impairments of property, identifiable intangible assets and goodwill, the provision for income tax and related valuation reserves, the valuation of assets and liabilities acquired in business combinations, assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans, the valuation of stock compensation instruments granted to employees, and contingencies. Actual results could differ from those estimates.

Foreign currency exchange rates: The assets and liabilities of substantially all subsidiaries outside the United States are translated at fiscal year-end rates of exchange, and earnings and cash flow statements are translated at weighted-average rates of exchange. The exchange rate in effect at the time of the cash flow is used for significant or infrequent cash flows, such as payments for a business acquisition, for which the use of weighted-average rates of exchange would result in a substantially different cash flow. Translation adjustments are accumulated with other comprehensive (losses) earnings as a separate component of stockholders’ equity and are presented net of tax effects in the Consolidated Statements of Stockholders’ Equity. The effects of changes in foreign currency exchange rates on loans between consolidated subsidiaries that are considered permanent in nature are also accumulated with other comprehensive earnings, net of tax.

The Company is exposed to market risks related to fluctuations in foreign currency exchange rates because some sales transactions, and certain assets and liabilities of its domestic and foreign subsidiaries, are denominated in foreign currencies. Selling, general, and administrative expenses include a net foreign currency loss of $8,369 in fiscal year 2024, a net foreign currency loss of $1,020 in fiscal year 2023, and a net foreign currency gain of $1,450 in fiscal year 2022.

Revenue recognition: Revenue is recognized on contracts with customers for arrangements in which quantities and pricing are fixed and/or determinable and are generally based on customer purchase orders, often within the framework of a long-term supply arrangement with the customer. Woodward has determined that it is the principal in its sales transactions, as Woodward is primarily responsible for fulfilling the promised performance obligations, has discretion to establish the selling price, and generally assumes the inventory risk. Woodward recognizes revenue for performance obligations within a customer contract when control of the associated product or service is transferred to the customer. Some of Woodward’s contracts with customers contain a single performance obligation, while other contracts contain multiple performance obligations. Each product within a contract generally represents a separate performance obligation as Woodward does not provide significant installation and integration services, the products do not customize each other, and the products can function independently of each other.

A contract's transaction price is allocated to each performance obligation and recognized as revenue when, or as, the customer obtains control of the associated product or service. When there are multiple performance obligations within a contract, Woodward generally uses the observable standalone sales price for each distinct product or service within the contract to allocate the transaction price to the distinct products or services. In instances when a standalone sales price for each product or service is not observable within the contract, Woodward allocates the transaction price to each performance obligation using an estimate of the standalone selling price for each product or service, which is generally based on incurred costs plus a reasonable margin, for each distinct product or service in the contract.

When determining the transaction price of each contract, Woodward considers contractual consideration payable by the customer and variable consideration that may affect the total transaction price. Variable consideration, consisting of early payment discounts, rebates, and other sources of price variability, are included in the estimated transaction price based on both customer-specific information as well as historical experience.

Customers sometimes trade in used products in exchange for new or refurbished products. In addition, Woodward’s customers sometimes provide inventory to Woodward which will be integrated into final products sold to those customers. Woodward obtains control of these exchanged products and customer provided inventory, and therefore, both are forms of noncash consideration. Noncash consideration paid by customers on overall sales transactions is additive to the transaction price. Woodward’s net sales and cost of goods sold include the value of such noncash consideration for the same amount, with no resulting impact to earnings before income taxes. Upon receipt of such inventory, Woodward recognizes an inventory asset and a contract liability.

Point in time and over time revenue recognition: Control of the products generally transfers to the customer at a point in time, if the customer does not control the products as they are produced. Performance obligations are satisfied and revenue is recognized over time if: (i) the customer receives the benefits as Woodward performs work, if the customer controls the asset as it is being enhanced, or if the product being produced for the customer has no alternative use to Woodward; and (ii) Woodward has an enforceable right to payment with a profit. For products being produced for the customer that have no alternative use to Woodward and Woodward has an enforceable right to payment with a profit, and where the products are substantially the same and have the same pattern of transfer to the customer, revenue is recognized as a series of distinct products. As Woodward satisfies MRO performance obligations, revenue is recognized over time, as the customer, rather than Woodward, controls the asset being enhanced. When services are provided, revenue from those services is recognized over time because control is transferred continuously to customers as Woodward performs the work.

For services that are not short-term in nature, MRO, and sales of products that have no alternative use to Woodward and an enforceable right to payment with a profit, Woodward uses an actual cost input measure to determine the extent of progress towards completion of the performance obligation. For these revenue streams, revenue is recognized over time as work is performed based on the relationship between actual costs incurred to-date for each contract and the total estimated costs for such contract at completion of the performance obligation (the cost-to-cost method). Woodward has concluded that this measure of progress best depicts the transfer of assets to the customer because incurred costs are integral to Woodward’s completion of the performance obligation under the specific customer contract and correlate directly to the transfer of control to the customer. Contract costs include labor, material, and overhead. Contract cost estimates are based on various assumptions to project the outcome of future events. These assumptions include labor

productivity, and availability; the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred.

If at any time the estimate of contract profitability indicates an anticipated loss on the contract, Woodward recognizes provisions for estimated losses on uncompleted contracts in the period in which such losses are determined. In situations where the creditworthiness of a customer becomes in doubt, Woodward ceases to recognize the over-time revenue on the associated customer contract.

Occasionally, Woodward sells maintenance or service arrangements, extended warranties, or other stand ready services. Woodward recognizes revenue from such arrangements as a series of performance obligations over the time period in which the services are available to the customer.

Material rights and costs to fulfill a contract: Customers sometimes pay consideration to Woodward for product engineering and development activities that do not result in the immediate transfer of distinct products or services to the customer. There is an implicit assumption that without the customer making such advance payments to Woodward, Woodward’s future sales of products or services to the customer would be at a higher selling price; therefore, such payments create a “material right” to the customer that effectively gives the customer an option to acquire future products or services, at a discount, that are dependent upon the product engineering and development. Material rights are recorded as contract liabilities and will be recognized when control of the related products or services are transferred to the customer.

Woodward capitalizes costs of product engineering and development identified as material rights up to the amount of customer funding as costs to fulfill a contract are incurred because the costs incurred up to the amount of the customer funding commitment are recoverable. Due to the uncertainty of the product success and/or demand, fulfillment costs in excess of the customer funding are expensed as incurred. Woodward recognizes the deferred material rights as revenue based on a percentage of actual sales to total estimated lifetime sales of the related developed products as the customers exercise their option to acquire additional products or services at a discount. Woodward amortizes the capitalized costs to fulfill a contract as cost of goods sold proportionally to the recognition of the associated deferred material rights. Estimated total lifetime sales are reviewed at least annually and more frequently when circumstances warrant a modification to the previous estimate.

Woodward does not capitalize incremental costs of obtaining a contract, as Woodward does not pay sales commissions or incur other incremental costs related to contracts with Woodward’s customers for arrangements in which quantities and pricing are fixed and/or determinable.

Contract liabilities: Advance payments and billings in excess of revenue recognized represent contract liabilities and are recorded as deferred revenues when customers remit contractual cash payments in advance of Woodward satisfying performance obligations under contractual arrangements, including those with performance obligations satisfied over time. Woodward generally receives advance payments from customers related to maintenance or service arrangements, extended warranties, or other stand ready services, which it recognizes over the performance period. Contract liabilities are satisfied when revenue is recognized and the performance obligation is satisfied. Advance payments and billings in excess of revenue recognized are included in deferred revenue, which is classified as current or noncurrent based on the timing of when Woodward expects to recognize revenue.

Customer payments: Woodward occasionally agrees to make payments to certain customers in order to participate in anticipated sales activity. Payments made to customers are accounted for as a reduction of revenue unless they are made in exchange for identifiable goods or services with fair values that can be reasonably estimated. Reductions in revenue associated with these customer payments are recognized immediately to the extent that the payments cannot be attributed to anticipated future sales, and are recognized in future periods to the extent that the payments relate to anticipated future sales. Such determinations are based on the facts and circumstances underlying each payment.

Purchase accounting: Business combinations are accounted for using the purchase method of accounting. Under this method, assets and liabilities, including intangible assets, are recorded at their fair values as of the acquisition date. Acquisition costs in excess of amounts assigned to assets acquired and liabilities assumed are recorded as goodwill. Transaction-related costs associated with business combinations are expensed as incurred.

Stock-based compensation: Compensation cost relating to stock-based payment awards made to employees and directors is recognized in the financial statements using a fair value method. Non-qualified stock option awards, restricted

stock units, and performance restricted stock units are issued under Woodward’s stock-based compensation plans. The cost of such awards, measured at the grant date, is based on the estimated fair value of the award.

Forfeitures are estimated at the time of each grant in order to estimate the portion of the award that will ultimately vest. The estimate is based on Woodward’s historical rates of forfeitures and is updated periodically. The portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods, which is generally the vesting period of the awards.

Research and development costs: Company funded expenditures related to new product development and significant product enhancement and/or upgrade activities are expensed as incurred and are separately reported in the Consolidated Statements of Earnings.

Income taxes: Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of Woodward’s assets, liabilities, and certain unrecognized gains and losses recorded in accumulated other comprehensive (losses) earnings. Woodward provides for taxes that may be payable if undistributed earnings of overseas subsidiaries were to be remitted to the United States, except for those earnings that it considers to be indefinitely invested.

Cash equivalents: Highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents.

Accounts receivable: Almost all of Woodward’s sales are made on credit and result in accounts receivable, which are recorded at the amount invoiced and are generally not collateralized. In the normal course of business, not all accounts receivable are collected and, therefore, an allowance for uncollectible amounts is provided equal to the amount that Woodward believes ultimately will not be collected, either from credit risk or other adjustments to the original selling price or anticipated cash discounts. In establishing the amount of the allowance related to the credit risk of accounts receivable, customer-specific information is considered related to delinquent accounts, past loss experience, bankruptcy filings, deterioration in the customer’s operating results or financial position, current and forecasted economic conditions, and other relevant factors. Bad debt losses are deducted from the allowance, and the related accounts receivable balances are written off when the receivables are deemed uncollectible. Recoveries of accounts receivable previously written off are recognized when received. The allowance associated with anticipated other adjustments to the selling price or cash discounts is also established and is included in the allowance for uncollectible amounts. In establishing this amount, both customer-specific information as well as historical experience is considered.

In coordination with its customers and when terms are considered favorable to Woodward, Woodward from time-to-time transfers ownership to collect amounts due to Woodward for outstanding accounts receivable to third parties in exchange for cash. When the transfer of accounts receivable meets the criteria of Financial Accounting Standards Board (“FASB”) ASC Topic 860-10, “Transfers and Servicing,” and are without recourse, it is recognized as a sale and the accounts receivable is derecognized, resulting in an increase of approximately $1,398 in cash provided by operating activities during fiscal year 2024, compared to an increase in cash provided by operating activities of approximately $26,273 during fiscal year 2023.

Unbilled receivables (contract assets) 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 receivables 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 receivables 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.

For composition of accounts receivable, see Note 3, Revenue.

Inventories: Inventories are valued at the lower of cost or net realizable value, with cost being determined using methods that approximate a first-in, first-out basis.

Short-term investments: From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. Amounts with maturities of less than 365 days are classified as “Other current assets.”

Property, plant, and equipment: Property, plant, and equipment are recorded at cost and are depreciated over the estimated useful lives of the assets. Assets are generally depreciated using the straight-line method. Assets are tested for recoverability whenever events or circumstances indicate the carrying value may not be recoverable.

Estimated lives over which fixed assets are generally depreciated at September 30, 2024 were as follows:

Land improvements

 

 

10

 

 

–

 

 

20

 

years

Buildings and improvements

 

 

10

 

 

–

 

 

40

 

years

Leasehold improvements

 

 

1

 

 

–

 

 

10

 

years

Machinery and production equipment

 

 

3

 

 

–

 

 

25

 

years

Computer equipment and software

 

 

3

 

 

–

 

 

10

 

years

Office furniture and equipment

 

 

3

 

 

–

 

 

15

 

years

Other

 

 

3

 

 

–

 

 

5

 

years

Included in computer equipment and software are Woodward’s enterprise resource planning (“ERP”) systems, which have an estimated useful life of 15 years. All other computer equipment and software is generally depreciated over three years to five years.

Leases: Right-of-use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the remaining fixed lease payments over the lease term. In determining the estimated present value of lease payments, Woodward discounts the fixed lease payments using the rate implicit in the agreement or, if the implicit rate is not known, using the incremental borrowing rate. Woodward’s incremental borrowing rate is based on the information available at the lease commencement date, with consideration given to Woodward’s recent debt issuances as well as publicly available data for instruments with similar characteristics.

For operating leases, lease expense is recognized over the expected lease term and classified as a cost of goods sold or selling, general, and administrative expense based on the nature of the underlying leased asset. For finance leases, the ROU asset is recognized over the shorter of the useful life of the asset, consistent with Woodward’s normal depreciation policy, or the lease term, and is classified as a cost of goods sold, selling, general, and administrative expense, or research and development expense, based on the nature and use of the underlying leased asset.

Certain of Woodward’s operating lease agreements include variable payments that are passed through by the landlord, such as insurance, taxes, and common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. Pass-through charges, payments due to changes in usage of the asset, and payments due to changes in indexation are included within variable rent expense and are recognized in the period in which the variable obligation for the payments was incurred.

Goodwill: Woodward tests goodwill for impairment at the reporting unit level on an annual basis and more often if an event occurs or circumstances change that indicates the fair value of a reporting unit may be below its carrying amount. Based on the relevant U.S. GAAP authoritative guidance, Woodward aggregates components of a single operating segment into a reporting unit, if appropriate. The impairment test consists of comparing the implied fair value of each reporting unit with its carrying amount that includes goodwill. If the carrying amount of the reporting unit exceeds its implied fair value, Woodward compares the implied fair value of goodwill with the recorded carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value of goodwill, an impairment loss would be recognized to reduce the carrying amount to its implied fair value.

Based on the results of Woodward’s annual goodwill impairment testing, no impairment charges were recorded in the year ended September 30, 2024, 2023, or 2022 or since the goodwill was originally recorded.

Other intangibles: Other intangibles are recognized apart from goodwill whenever an acquired intangible asset arises from contractual or other legal rights, or whenever it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset, or liability. Woodward amortizes the cost of other intangibles over their useful lives unless such lives are deemed indefinite. The cost of finite-lived other intangibles are amortized over their respective useful life using patterns that reflect the periods over which the economic benefits of the assets are expected to be realized. Amortization expense is allocated to cost of goods sold and selling, general, and administrative expenses based on the nature of the intangible asset. Finite-lived other intangible assets are reviewed for impairment whenever an event occurs or circumstances change indicating that the related carrying amount of the other intangible asset may not be recoverable. Impairment losses are recognized if the carrying amount of an intangible is both not recoverable and exceeds its fair value.

Woodward has recorded no impairment charges related to its other intangibles in the year ended September 30, 2024, 2023, or 2022.

Estimated lives over which intangible assets are amortized at September 30, 2024 were as follows:

 

Customer relationships and contracts

 

 

11

 

 

–

 

 

30

 

 

years

Intellectual property

 

17 years

Process technology

 

 

10

 

 

–

 

 

30

 

 

years

Other

 

1 year

Woodward has one indefinitely lived intangible asset consisting of the Woodward L’Orange trade name. The Woodward L’Orange trade name intangible asset is tested for impairment on an annual basis and more often if an event occurs or circumstances change that indicate the fair value of the Woodward L’Orange intangible asset may be below its carrying amount. The impairment test consists of comparing the fair value of the Woodward L’Orange trade name intangible asset, determined using discounted cash flows, with its carrying amount. If the carrying amount of the Woodward L’Orange intangible asset exceeds its fair value, an impairment loss would be recognized to reduce the carrying amount to its fair value. Woodward has not recorded any impairment charges against the L'Orange trade name intangible asset since it was acquired.

Impairment of long-lived assets: Woodward reviews the carrying amount of its long-lived assets or asset groups to be used in operations whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others.

If such facts indicate a potential impairment, the Company would assess the recoverability of an asset group by determining if the carrying amount of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying amount of the asset group is not recoverable, the Company will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group’s carrying amount and its estimated fair value.

Investment in marketable equity securities: Woodward holds marketable equity securities related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net.” The trading securities are included in “Other assets.” The associated obligation to provide benefits under the deferred compensation program is included in “Other liabilities.”

Investments in unconsolidated subsidiaries: Investments in, and operating results of, entities in which Woodward does not have a controlling financial interest or the ability to exercise significant influence over the operations are included in the financial statements using the cost method of accounting. Investments and operating results of entities in which Woodward does not have a controlling interest but does have the ability to exercise significant influence over operations are included in the financial statements using the equity method of accounting.

Deferred compensation: The Company maintains a deferred compensation plan, or “rabbi trust,” as part of its overall compensation package for certain employees.

Deferred compensation obligations will be settled either by delivery of a fixed number of shares of Woodward’s common stock (in accordance with certain eligible members’ irrevocable elections) or in cash. Woodward has contributed shares of its common stock into a trust established for the future settlement of deferred compensation obligations that are payable in shares of Woodward’s common stock. Common stock held by the trust is reflected in the Consolidated Balance

Sheets as “Treasury stock held for deferred compensation” and the related deferred compensation obligation is reflected as a separate component of equity in amounts equal to the fair value of the common stock at the dates of contribution. These accounts are not adjusted for subsequent changes in the fair value of the common stock. Deferred compensation obligations that will be settled in cash are accounted for on an accrual basis in accordance with the terms of the underlying contract and are reflected in the Consolidated Balance Sheet as “Other liabilities.”

Financial instruments: The Company’s financial instruments include cash and cash equivalents, short-term investments, investments in the deferred compensation program, notes receivable from municipalities, investments in term deposits, cross-currency interest rate swaps, and debt. Because of their short-term maturity, the carrying amount of cash and cash equivalents and short-term debt approximate fair value. Financial assets and liabilities recorded at fair value in the Consolidated Balance Sheets are categorized based upon a fair value hierarchy established by U.S. GAAP, which prioritizes the inputs used to measure fair value into the following levels:

Level 1: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date.

Level 2: Quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data.

Level 3: Inputs reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments.

Further information on the fair value of financial instruments can be found at Note 7, Financial instruments and fair value measurements.

Derivatives: The Company is exposed to various global market risks, including the effect of changes in interest rates, foreign currency exchange rates, changes in certain commodity prices, and fluctuations in various producer indices. From time to time, Woodward enters into derivative instruments for risk management purposes only, including derivatives designated as accounting hedges and/or those utilized as economic hedges. Woodward uses interest rate related derivative instruments to manage its exposure to fluctuations of interest rates. Woodward does not enter into or issue derivatives for trading or speculative purposes.

By using derivative and/or hedging instruments to manage its risk exposure, Woodward is subject, from time to time, to credit risk and market risk on those derivative instruments. Credit risk arises from the potential failure of the counterparty to perform under the terms of the derivative and/or hedging instrument. When the fair value of a derivative contract is positive, the counterparty owes Woodward, which creates credit risk for Woodward. Woodward mitigates this credit risk by entering into transactions only with counterparties that are believed to be creditworthy. Market risk arises from the potential adverse effects on the value of derivative and/or hedging instruments that result from a change in interest rates, commodity prices, or foreign currency exchange rates. Woodward minimizes this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.

From time to time, in order to hedge against foreign currency exposure, Woodward designates certain non-derivative financial instrument loans as net investment hedges. Foreign exchange gains or losses on these loans are recognized in foreign currency translation adjustments within total comprehensive (losses) earnings. Also, to hedge against the foreign currency exposure attributable to non-functional currency denominated intercompany loans, Woodward has entered into derivative instruments in fair value hedging relationships and cash flow hedging relationships.

Further information on net investment hedges and derivative instruments in fair value and cash flow hedging relationships, including the Company’s policy in accounting for these derivatives, can be found at Note 8, Derivative instruments and hedging activities.

Postretirement benefits: The Company provides various benefits to certain current and former employees through defined benefit pension and postretirement plans. For financial reporting purposes, net periodic benefits expense and related obligations are calculated using a number of significant actuarial assumptions. Changes in net periodic expense and funding status may occur in the future due to changes in these assumptions. The funded status of defined pension and postretirement plans recognized in the statement of financial position is measured as the difference between the fair market value of the plan assets and the benefit obligation. For a defined benefit pension plan, the benefit obligation is the projected benefit obligation; for any other defined benefit postretirement plan, such as a retiree health care plan, the

benefit obligation is the accumulated benefit obligation. Any over-funded status is recognized as an asset and any underfunded status is recognized as a liability.

Projected benefit obligation is the actuarial present value as of the measurement date of all benefits attributed by the plan benefit formula to employee service rendered before the measurement date using assumptions as to future compensation levels if the plan benefit formula is based on those future compensation levels. The accumulated benefit obligation is the actuarial present value of benefits (whether vested or unvested) attributed by the plan benefit formula to employee service rendered before the measurement date and based on employee service and compensation, if applicable, prior to that date. The accumulated benefit obligation differs from the projected benefit obligation in that it includes no assumption about future compensation levels.
v3.24.3
New Accounting Standards
 12 Months Ended
Sep. 30, 2024
Accounting Standards Update and Change in Accounting Principle [Abstract]  
New Accounting Standards

Note 2. New accounting standards

From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”).

In November 2023, the FASB issued ASU 2023-07, "Improvements to Reportable Segment Disclosures." The purpose of ASU 2023-07 is to provide enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 (fiscal year 2025 for Woodward), and interim periods within fiscal years beginning after December 15, 2024 (fiscal year 2026 for Woodward), with early adoption permitted, and are to be applied on a retrospective basis to all periods presented. Woodward is currently assessing the impact on its segment reporting disclosures.

In December 2023, the FASB issued ASU 2023-09, "Improvements to Income Tax Disclosures." The purpose of ASU 2023-09 is to provide enhanced disclosures surrounding income taxes by requiring consistent categories and greater disaggregation of information in the rate reconciliation, the disaggregation of income taxes paid by jurisdiction, as well as several other changes to the income tax disclosure. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 (fiscal year 2026 for Woodward), with early adoption permitted, and is required to be applied prospectively with the option of retrospective application. Woodward is currently assessing the impact on its income tax disclosures.

In November 2024, the FASB issued ASU 2024-03, "Disaggregation of Income Statement Expenses" the purpose of ASU 2024-03 is to provide enhanced disclosures about significant expenses on the Consolidated Statement of Earnings. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026 (fiscal year 2028 for Woodward), and interim periods within fiscal years beginning after December 15, 2027 (fiscal year 2029 for Woodward), with early adoption permitted, and are to be applied either on a prospective basis to financial statements issued for reporting periods after the effective date or on a retrospective basis to all periods presented. Woodward is currently assessing the impact on its Consolidated Statement of Earnings disclosures.

v3.24.3
Revenue
 12 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

Note 3. Revenue

Sales of products

Woodward primarily generates revenue through the manufacture and sale of engineered aerospace and industrial products, including revenue derived from MRO performance obligations performed on products originally manufactured by Woodward and subsequently returned by OEM or other end-user customers. The majority of Woodward’s costs incurred to satisfy MRO performance obligations are related to replacing and/or refurbishing component parts of the returned products to restore the units back to a condition generally comparable to that of the unit upon its initial sale to an OEM customer. Therefore, Woodward considers almost all of its revenue to be derived from product sales, including those related to MRO.

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Manufactured products

 

 

83

%

 

 

84

%

 

 

84

%

MRO

 

 

15

%

 

 

14

%

 

 

14

%

Services

 

 

2

%

 

 

2

%

 

 

2

%

 

Point in time and over time revenue recognition

The amount of revenue recognized as point in time or over time follows:

 

 

For the Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

Point in time

 

$

853,728

 

 

$

780,794

 

 

$

1,634,522

 

 

$

748,278

 

 

$

708,458

 

 

$

1,456,736

 

 

$

593,233

 

 

$

509,737

 

 

$

1,102,970

 

Over time

 

 

1,174,890

 

 

 

514,837

 

 

 

1,689,727

 

 

 

1,019,825

 

 

 

438,005

 

 

 

1,457,830

 

 

 

926,089

 

 

 

353,731

 

 

 

1,279,820

 

Total net sales

 

$

2,028,618

 

 

$

1,295,631

 

 

$

3,324,249

 

 

$

1,768,103

 

 

$

1,146,463

 

 

$

2,914,566

 

 

$

1,519,322

 

 

$

863,468

 

 

$

2,382,790

 

Material rights and costs to fulfill a contract

Amounts recognized related to changes in estimated total lifetime sales for material rights and costs to fulfill contracts with customers follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue

 

$

17,154

 

 

$

1,460

 

 

$

1,514

 

Cost of goods sold

 

 

15,486

 

 

 

1,736

 

 

 

667

 

Amounts recognized related to amortization of costs to fulfill contracts and contract liabilities, which were not related to changes in estimate, follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue

 

$

7,230

 

 

$

6,741

 

 

$

4,107

 

Cost of goods sold

 

 

3,112

 

 

 

5,559

 

 

 

3,077

 

As of September 30, 2024, “Other assets” on the Consolidated Balance Sheets included $185,102 of capitalized costs to fulfill contracts with customers, compared to $180,228 as of September 30, 2023.

Accounts receivable and 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 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. Woodward’s contracts with customers generally have no financing components.

Accounts receivable consisted of the following:

 

 

September 30, 2024

 

 

September 30, 2023

 

Billed receivables

 

 

 

 

 

 

Trade accounts receivable

 

$

455,831

 

 

$

434,287

 

Other (Chinese financial institutions)

 

 

1,403

 

 

 

50,940

 

Total billed receivables

 

 

457,234

 

 

 

485,227

 

Current unbilled receivables (contract assets)

 

 

320,570

 

 

 

270,479

 

Total accounts receivable

 

 

777,804

 

 

 

755,706

 

Less: Allowance for uncollectible amounts

 

 

(7,738

)

 

 

(5,847

)

Total accounts receivable, net

 

$

770,066

 

 

$

749,859

 

As of September 30, 2024, “Other assets” on the Consolidated Balance Sheets includes $11,237 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $7,332 as of September 30, 2023. Unbilled receivables not expected to be invoiced and collected within a period of twelve months are primarily attributable to the timing of revenue recognized in excess of billings in the Aerospace segment.

Billed and unbilled accounts receivable from the U.S. Government were less than 10% of total billed and unbilled accounts receivable at September 30, 2024 and September 30, 2023.

The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Balance, beginning

 

$

5,847

 

 

$

3,922

 

 

$

3,664

 

Changes in estimates

 

 

3,219

 

 

 

7,211

 

 

 

447

 

Write-offs

 

 

(586

)

 

 

(5,305

)

 

 

(46

)

Other1

 

 

(742

)

 

 

19

 

 

 

(143

)

Balance, ending

 

$

7,738

 

 

$

5,847

 

 

$

3,922

 
(1)
Includes effects of foreign exchange rate changes during the period.

Contract liabilities

Contract liabilities consisted of the following:

 

 

September 30, 2024

 

 

September 30, 2023

 

 

 

Current

 

 

Noncurrent

 

 

Current

 

 

Noncurrent

 

Deferred revenue from material rights from JV formation

 

$

6,580

 

 

$

232,164

 

 

$

6,147

 

 

$

233,997

 

Deferred revenue from advanced invoicing and/or prepayments from customers

 

 

23,706

 

 

 

6,437

 

 

 

6,868

 

 

 

2,196

 

Liability related to customer supplied inventory

 

 

20,563

 

 

 

—

 

 

 

14,543

 

 

 

—

 

Deferred revenue from material rights related to engineering and development funding

 

 

5,942

 

 

 

186,008

 

 

 

6,190

 

 

 

178,464

 

Net contract liabilities

 

$

56,791

 

 

$

424,609

 

 

$

33,748

 

 

$

414,657

 

The current portion of contract liabilities is included in “Accrued liabilities” and the noncurrent portion is included in “Other liabilities” of Woodward’s Consolidated Balance Sheets. Woodward recognized revenue of $44,398 in the year ended September 30, 2024 from contract liabilities balances recorded as of September 30, 2023, compared to $25,190 in the year ended September 30, 2023 from contract liabilities balances recorded as of September 30, 2022.

The amount of revenue recognized related to noncash consideration received from customers follows:

 

 

For the Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Aerospace

 

$

61,323

 

 

$

50,329

 

 

$

63,358

 

Industrial

 

 

4,974

 

 

 

1,939

 

 

 

2,343

 

Consolidated

 

$

66,297

 

 

$

52,268

 

 

$

65,701

 

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 September 30, 2024 was $2,932,793, compared to $2,325,533 as of September 30, 2023, 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 September 30, 2024.

Remaining performance obligations related to material rights that have not yet been recognized in revenue as of September 30, 2024 was $509,366, of which $14,788 is expected to be recognized in fiscal year 2025, 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:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Commercial OEM

 

$

738,394

 

 

$

651,275

 

 

$

499,438

 

Commercial aftermarket

 

 

640,823

 

 

 

547,625

 

 

 

420,881

 

Defense OEM

 

 

406,810

 

 

 

368,653

 

 

 

422,016

 

Defense aftermarket

 

 

242,591

 

 

 

200,550

 

 

 

176,987

 

Total Aerospace segment net sales

 

$

2,028,618

 

 

$

1,768,103

 

 

$

1,519,322

 

Revenue by primary market for the Industrial reportable segment was as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Power generation

 

$

423,872

 

 

$

382,536

 

 

$

317,026

 

Transportation

 

 

642,174

 

 

 

527,498

 

 

 

354,682

 

Oil and gas

 

 

229,585

 

 

 

236,429

 

 

 

191,760

 

Total Industrial segment net sales

 

$

1,295,631

 

 

$

1,146,463

 

 

$

863,468

 

During fiscal year 2023, for purposes of how we assess performance, we determined that certain revenue was better aligned with our markets consisting of power generation, transportation, and oil and gas, rather than the reciprocating engines and industrial turbines, how it was previously reported. For comparability, we have reclassified revenue for the year ended September 30, 2022 to conform to the new presentation. This reclassification of revenue had no impact on our consolidated financial results.

The customers who account for approximately 10% or more of net sales of each of Woodward’s reportable segments are as follows:

 

 

For the Year Ended September 30,

 

 

2024

 

2023

Aerospace

 

RTX Corporation, The Boeing Company

 

RTX Corporation, GE, The Boeing Company

Industrial

 

Weichai Power, Rolls-Royce PLC

 

Rolls-Royce PLC, Caterpillar Inc., Weichai Power

Net sales by geographic area, as determined based on the location of the customer, were as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

United States

 

$

1,404,223

 

 

$

294,033

 

 

$

1,698,256

 

 

$

1,254,954

 

 

$

283,121

 

 

$

1,538,075

 

 

$

1,105,860

 

 

$

205,740

 

 

$

1,311,600

 

Germany

 

 

72,583

 

 

 

196,775

 

 

 

269,358

 

 

 

80,450

 

 

 

193,392

 

 

 

273,842

 

 

 

57,840

 

 

 

174,216

 

 

 

232,056

 

Europe, excluding Germany

 

 

202,421

 

 

 

297,517

 

 

 

499,938

 

 

 

163,222

 

 

 

273,757

 

 

 

436,979

 

 

 

128,719

 

 

 

234,795

 

 

 

363,514

 

China

 

 

96,136

 

 

 

293,908

 

 

 

390,044

 

 

 

56,773

 

 

 

186,713

 

 

 

243,486

 

 

 

49,407

 

 

 

86,972

 

 

 

136,379

 

Asia, excluding China

 

 

59,103

 

 

 

163,603

 

 

 

222,706

 

 

 

37,107

 

 

 

162,922

 

 

 

200,029

 

 

 

23,334

 

 

 

128,855

 

 

 

152,189

 

Other countries

 

 

194,152

 

 

 

49,795

 

 

 

243,947

 

 

 

175,597

 

 

 

46,558

 

 

 

222,155

 

 

 

154,162

 

 

 

32,890

 

 

 

187,052

 

Total net sales

 

$

2,028,618

 

 

$

1,295,631

 

 

$

3,324,249

 

 

$

1,768,103

 

 

$

1,146,463

 

 

$

2,914,566

 

 

$

1,519,322

 

 

$

863,468

 

 

$

2,382,790

 
v3.24.3
Earnings Per Share
 12 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Earnings Per Share

Note 4. Earnings per share

Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Diluted earnings per share reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options, restricted stock units, and performance stock units.

The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

 

 

 

Net earnings

 

$

372,971

 

 

$

232,368

 

 

$

171,698

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

 

60,076

 

 

 

59,908

 

 

 

61,517

 

Dilutive effect of stock options; restricted and performance stock units

 

 

2,008

 

 

 

1,574

 

 

 

1,737

 

Diluted shares outstanding

 

 

62,084

 

 

 

61,482

 

 

 

63,254

 

Income per common share:

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

6.21

 

 

$

3.88

 

 

$

2.79

 

Diluted earnings per share

 

$

6.01

 

 

$

3.78

 

 

$

2.71

 

The following stock option grants were outstanding but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Options

 

 

63

 

 

 

561

 

 

 

1,019

 

Weighted-average option price

 

$

135.26

 

 

$

114.88

 

 

$

110.71

 

The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Weighted-average treasury stock shares held for deferred compensation obligations

 

 

51

 

 

 

88

 

 

 

151

 
v3.24.3
Leases
 12 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases

Note 5. Leases

Lessee arrangements

Woodward has entered into operating leases for certain facilities and equipment with terms in excess of one year under agreements that expire at various dates. Some leases require the payment of property taxes, insurance, maintenance costs, or other similar costs in addition to rental payments. Woodward has also entered into finance leases for equipment with terms in excess of one year under agreements that expire at various dates.

None of Woodward’s lease agreements contain significant residual value guarantees, restrictions, or covenants. As of September 30, 2024, Woodward has not entered into any lease arrangements that have not yet commenced but would create significant rights and obligations. Woodward does not have any lease transactions between related parties.

Lease-related assets and liabilities follows:

 

 

Classification on the Consolidated Balance Sheets

 

September 30, 2024

 

 

September 30, 2023

 

Assets:

 

 

 

 

 

 

 

 

Operating lease assets

 

Other assets

 

$

27,135

 

 

$

24,680

 

Finance lease assets

 

Property, plant, and equipment, net

 

 

2,516

 

 

 

3,337

 

Total lease assets

 

 

 

 

29,651

 

 

 

28,017

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Operating lease liabilities

 

Accrued liabilities

 

 

5,029

 

 

 

4,594

 

Finance lease liabilities

 

Current portion of long-term debt

 

 

719

 

 

 

817

 

Noncurrent liabilities:

 

 

 

 

 

 

 

 

Operating lease liabilities

 

Other liabilities

 

 

22,670

 

 

 

20,685

 

Finance lease liabilities

 

Long-term debt, less current portion

 

 

2,017

 

 

 

2,733

 

Total lease liabilities

 

 

 

$

30,435

 

 

$

28,829

 

 

Supplemental lease-related information follows:

 

 

September 30, 2024

 

 

September 30, 2023

 

Weighted average remaining lease term

 

 

 

 

 

 

Operating leases

 

8.1 years

 

 

8.6 years

 

Finance leases

 

3.8 years

 

 

4.6 years

 

Weighted average discount rate

 

 

 

 

 

 

Operating leases

 

 

4.4

%

 

 

4.0

%

Finance leases

 

 

4.6

%

 

 

4.6

%

Lease-related expenses were as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Operating lease expense

 

$

6,804

 

 

$

6,213

 

 

$

6,335

 

Amortization of financing lease assets

 

 

820

 

 

 

914

 

 

 

454

 

Interest on financing lease liabilities

 

 

138

 

 

 

157

 

 

 

51

 

Variable lease expense

 

 

1,299

 

 

 

917

 

 

 

929

 

Short-term lease expense

 

 

164

 

 

 

196

 

 

 

190

 

Sublease income1

 

 

—

 

 

 

—

 

 

 

(192

)

Total lease expense

 

$

9,225

 

 

$

8,397

 

 

$

7,767

 
(1)
Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois, each of which expired during fiscal year 2022.

Lease-related supplemental cash flow information was as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

5,375

 

 

$

5,151

 

 

$

5,303

 

Operating cash flows for finance leases

 

 

138

 

 

 

157

 

 

 

51

 

Financing cash flows for finance leases

 

 

818

 

 

 

779

 

 

 

796

 

Right-of-use assets obtained in exchange for recorded lease obligations:

 

 

 

 

 

 

 

 

 

Operating leases

 

 

6,117

 

 

 

2,230

 

 

 

14,678

 

Finance leases

 

 

—

 

 

 

48

 

 

 

4,046

 

Maturities of lease liabilities were as follows:

Year Ending September 30:

 

Operating Leases

 

 

Finance Leases

 

2025

 

$

5,997

 

 

$

823

 

2026

 

 

5,255

 

 

 

824

 

2027

 

 

4,338

 

 

 

822

 

2028

 

 

3,962

 

 

 

234

 

2029

 

 

3,219

 

 

 

182

 

Thereafter

 

 

10,241

 

 

 

75

 

Total lease payments

 

 

33,012

 

 

 

2,960

 

Less: imputed interest

 

 

(5,313

)

 

 

(224

)

Total lease obligations

 

$

27,699

 

 

$

2,736

 

Lessor arrangements

Woodward has assessed its manufacturing contracts and concluded that certain of the contracts for the manufacture of customer products met the criteria to be considered a leasing arrangement (“embedded leases”) with Woodward as the lessor. The specific manufacturing contracts that met the criteria were those that utilized Woodward property, plant, and equipment and which is substantially (more than 90%) dedicated to the manufacturing of the product(s) for a single customer. Woodward has dedicated manufacturing lines with four of its customers representing embedded leases, all of which qualified as operating leases with undefined quantities of future customer purchase commitments.

Although Woodward expects to allocate some portion of future net sales to these customers to embedded lessor arrangements, it cannot provide expected future undiscounted lease payments from property, plant, and equipment leased to customers as of September 30, 2024. If, in the future, customers reduce purchases of related products from Woodward, the Company believes it will derive additional value from the underlying equipment by repurposing its use to support other customer arrangements.

Woodward recognizes revenue from the embedded lessor arrangements based on the value of the underlying dedicated property, plant, and equipment. There are no fixed payments that the customers under the embedded lessor arrangements are obligated to pay. Therefore, all the customer payments under the embedded lessor arrangements are considered variable with the associated leasing revenue recognized when the revenue from underlying product sale related to variable lease payment is recognized. Revenue from contracts with customers that included embedded operating leases, which is included in “Net sales” at the Consolidated Statements of Earnings, was $5,486 for the fiscal year ended September 30, 2024, compared to $5,030 for the fiscal year ended September 30, 2023 and $5,528 for the fiscal year ended September 30, 2022.

The carrying amount of property, plant, and equipment leased to others through embedded leasing arrangements, included in “Property, plant, and equipment, net” at the Consolidated Balance Sheets, was as follows:

 

 

September 30, 2024

 

 

September 30, 2023

 

Property, plant, and equipment

 

$

48,495

 

 

$

45,766

 

Less accumulated depreciation

 

 

(32,994

)

 

 

(28,128

)

Property, plant, and equipment, net

 

$

15,501

 

 

$

17,638

 
v3.24.3
Joint Venture
 12 Months Ended
Sep. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Joint Venture

Note 6. Joint venture

In fiscal year 2016, Woodward and GE consummated the formation of the strategic JV to develop, manufacture, and support fuel systems for specified existing and all future GE Aerospace commercial aircraft engines that produce thrust in excess of fifty thousand pounds. Since the split at GE, GE has been acting though GE Aerospace.

Unamortized deferred revenue from material rights in connection with the JV formation included:

 

 

September 30, 2024

 

 

September 30, 2023

 

Accrued liabilities

 

$

6,580

 

 

$

6,147

 

Other liabilities

 

 

232,164

 

 

 

233,997

 

Amortization of the deferred revenue (material right) recognized as an increase to sales was $6,294 for the fiscal year ended September 30, 2024, $5,020 for the fiscal year ended September 30, 2023, and $3,633 for the fiscal year ended September 30, 2022.

Woodward and GE Aerospace jointly manage the JV and any significant decisions and/or actions of the JV require the mutual consent of both parties. Neither Woodward nor GE Aerospace has a controlling financial interest in the JV, but both Woodward and GE Aerospace do have the ability to significantly influence the operating and financial decisions of the JV. Therefore, Woodward is accounting for its 50% ownership interest in the JV using the equity method of accounting. The JV is a related party to Woodward. In addition, GE Aerospace will continue to pay contingent consideration to Woodward consisting of fifteen annual payments of $4,894 each, which began on January 4, 2017, subject to certain claw-back conditions. Woodward received its seventh and eighth annual payments of $4,894 during the three-months ended March 31, 2023 and March 31, 2024, respectively, which were recorded as deferred income and included in net cash provided by operating activities on the Consolidated Statements of Cash Flows. Neither Woodward nor GE at the time contributed any tangible assets to the JV.

Other income related to Woodward’s equity interest in the earnings of the JV was as follows:

 

 

For the Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Other income

 

$

41,191

 

 

$

36,846

 

 

$

18,193

 

Cash distributions to Woodward from the JV, recognized in net cash provided by operating activities on the Consolidated Statements of Cash Flows, include:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Cash distributions

 

$

38,000

 

 

$

29,000

 

 

$

17,000

 

 

Net sales to the JV were as follows:

 

 

For the Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Net sales1

 

$

80,708

 

 

$

47,607

 

 

$

28,100

 
(1)
Net sales include a reduction of $63,794 for the fiscal year ended September 30, 2024, $49,624 for the fiscal year ended September 30, 2023, and $28,054 for the fiscal year ended September 30, 2022 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers.

The Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows:

 

 

September 30, 2024

 

 

September 30, 2023

 

Accounts receivable

 

$

5,205

 

 

$

3,666

 

Accounts payable

 

 

11,378

 

 

 

6,276

 

Other assets

 

 

19,219

 

 

 

16,028

 

Woodward records in “Other liabilities” amounts invoiced to the JV for support of the JV’s engineering and development projects as an increase to contract liabilities and records in “Other assets” related incurred expenditures as costs to fulfill a contract. Contract liabilities and costs to fulfill a contract was as follows:

 

 

September 30, 2024

 

 

September 30, 2023

 

Contract liabilities

 

$

78,226

 

 

$

84,059

 

Costs to fulfill a contract

 

 

78,226

 

 

 

84,059

 

Woodward recognized revenue of $812 in the fiscal year ended September 30, 2024, from contract liabilities, recorded as of September 30, 2023, compared to $870 in the fiscal year ended September 30, 2023, from contract liabilities recorded as of September 30, 2022. Comparatively, Woodward recognized cost of goods sold of $1,236 in the fiscal year ended September 30, 2024, from contract assets, recorded as of September 30, 2023, compared to $870 in the fiscal year ended September 30, 2023, from contract assets recorded as of September 30, 2022.

In the fiscal year ended September 30, 2024, Woodward recognized a $9,680 reduction in the contract liability and a $9,680 reduction in costs to fulfill a contract related to the termination of a JV engineering and development project previously recognized as a material right. No reductions in costs to fulfill a contract or contract liabilities were recorded during the fiscal year ended September 30, 2023 as a result of the termination of joint venture engineering and development projects.
v3.24.3
Financial Instruments and Fair Value Measurements
 12 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Measurements

Note 7. Financial instruments and fair value measurements

The table below presents information about Woodward’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value.

 

 

At September 30, 2024

 

 

At September 30, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in banks and financial institutions

 

$

23,128

 

 

$

—

 

 

$

—

 

 

$

23,128

 

 

$

28,560

 

 

$

—

 

 

$

—

 

 

$

28,560

 

Equity securities

 

 

30,782

 

 

 

—

 

 

 

—

 

 

 

30,782

 

 

 

24,913

 

 

 

—

 

 

 

—

 

 

 

24,913

 

Cross-currency interest rate swaps

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,389

 

 

 

—

 

 

 

5,389

 

Total financial assets

 

$

53,910

 

 

$

—

 

 

$

—

 

 

$

53,910

 

 

$

53,473

 

 

$

5,389

 

 

$

—

 

 

$

58,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cross-currency interest rate swaps

 

$

—

 

 

$

12,004

 

 

$

—

 

 

$

12,004

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Total financial liabilities

 

$

—

 

 

$

12,004

 

 

$

—

 

 

$

12,004

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Investments in banks and financial institutions: Woodward’s and its subsidiaries sometimes invest excess cash in various highly liquid financial instruments that Woodward believes are with creditworthy financial institutions. Such investments are reported in “Cash and cash equivalents” at fair value, with realized gains from interest income recognized

in earnings. The carrying value of Woodward’s investments in banks and financial institutions are considered equal to the fair value given the highly liquid nature of the investments.

Equity securities: Woodward holds marketable equity securities, through investments in various mutual funds, related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net” on the Consolidated Statements of Earnings. The trading securities are included in “Other assets” in the Consolidated Balance Sheets. The fair values of Woodward’s trading securities are based on the quoted market prices for the net asset value of the various mutual funds.

Cross-currency interest rate swaps: Woodward holds cross-currency interest rate swaps, which are accounted for at fair value. The swaps in an asset position are included in “Other current assets” and “Other assets,” and swaps in a liability position are included in “Accrued liabilities” and “Other liabilities” in the Condensed Consolidated Balance Sheets. The fair values of Woodward’s cross-currency interest rate swaps are determined using a market approach that is based on observable inputs other than quoted market prices, including contract terms, interest rates, currency rates, and other market factors.

Cash, trade accounts receivable, accounts payable, and short-term borrowings are not remeasured to fair value, as the carrying cost of each approximates its respective fair value.

The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Consolidated Balance Sheets were as follows:

 

 

 

 

At September 30, 2024

 

 

At September 30, 2023

 

 

 

Fair Value
Hierarchy
Level

 

Estimated
Fair Value

 

 

Carrying
Cost

 

 

Estimated
Fair Value

 

 

Carrying
Cost

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes receivable from municipalities

 

2

 

$

6,961

 

 

$

6,514

 

 

$

7,794

 

 

$

7,688

 

Investments in short-term time deposits

 

2

 

 

3,064

 

 

 

3,064

 

 

 

6,095

 

 

 

6,107

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

2

 

$

634,071

 

 

$

656,360

 

 

$

661,507

 

 

$

722,671

 

In connection with certain economic incentives related to Woodward’s development of a second campus in the greater-Rockford, Illinois area for its Aerospace segment and Woodward’s development of its corporate headquarters in Fort Collins, Colorado, Woodward received long-term notes from municipalities within the states of Illinois and Colorado. The fair value of the long-term notes was estimated based on a model that discounted future principal and interest payments received at an interest rate available to the Company at the end of the period for similarly rated municipal notes of similar maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the long-term notes were 2.7% at September 30, 2024 and 3.6% at September 30, 2023.

From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. The fair value of the investments in short-term time deposits was estimated based on a model that discounted future principal and interest payments to be received at an interest rate available to the foreign subsidiary entering into the investment for similar short-term time deposits of similar maturity. This was determined to be a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the short-term time deposits was 6.8% at September 30, 2024 and at September 30, 2023.

The fair value of long-term debt was estimated based on a model that discounted future principal and interest payments at interest rates available to the Company at the end of the period for similar debt of the same maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The weighted-average interest rates used to estimate the fair value of long-term debt were 4.5% at September 30, 2024 and 5.9% at September 30, 2023.
v3.24.3
Derivative Instruments and Hedging Activities
 12 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedges, Assets [Abstract]  
Derivative Instruments and Hedging Activities

Note 8. Derivative instruments and hedging activities

Derivative instruments not designated or qualifying as hedging instruments

In May 2020, Woodward entered into a floating-rate cross-currency interest rate swap (the “2020 Floating-Rate Cross-Currency Swap”), with a notional value of $45,000, and five fixed-rate cross-currency interest rate swap agreements (the “2020 Fixed-Rate Cross-Currency Swaps”), with an aggregate notional value of $400,000, which effectively reduced the

interest rates on the underlying fixed and floating-rate debt, respectively, under the 2018 Notes (as defined in Note 15, Credit facilities, short-term borrowings and long-term debt) and Woodward’s then existing revolving credit agreement.

The net interest income of the cross-currency interest rate swaps is recorded as a reduction to “Interest expense” in Woodward’s Consolidated Statements of Earnings. The 2020 Floating-Rate Cross-Currency Swap expired on May 31, 2023 and, as such, is no longer recorded on the Consolidated Balance Sheets. As of September 30, 2024, the total notional value of the 2020 Fixed-Rate Cross-Currency Swaps was $400,000. See Note 7, Financial instruments and fair value measurements, for the related fair value of the derivative instruments as of September 30, 2024.

Derivatives instruments in fair value hedging relationships

In May 2020, Woodward entered into a US dollar denominated intercompany loan payable with identical terms and notional value as the 2020 Floating-Rate Cross-Currency Swap, together with a reciprocal intercompany floating-rate cross-currency interest rate swap. The agreements were entered into by Woodward Barbados Euro Financing SRL (“Euro Barbados”), a wholly owned subsidiary of Woodward. The US dollar denominated intercompany loan and reciprocal intercompany floating-rate cross-currency interest rate swap are designated as a fair value hedge under the criteria prescribed in ASC 815. The objective of the derivative instrument is to hedge against the foreign currency exchange risk attributable to the spot remeasurement of the US dollar denominated intercompany loan, as Euro Barbados maintains a Euro functional currency.

For each floating-rate intercompany cross-currency interest rate swap, only the change in the fair value related to the cross-currency basis spread, or excluded component, of the derivative instrument is recognized in accumulated other comprehensive income ("OCI"). The remaining change in the fair value of the derivative instrument is recognized in foreign currency transaction gain or loss included in “Selling, general, and administrative costs” in Woodward’s Consolidated Statements of Earnings. The change in the fair value of the derivative instrument in foreign currency transaction gain or loss offsets the change in the spot remeasurement of the intercompany Euro and US dollar denominated loans. Hedge effectiveness is assessed based on the fair value changes of the derivative instrument, after excluding any fair value changes related to the cross-currency basis spread. The initial cost of the cross-currency basis spread is recorded in earnings each period through the swap accrual process. There are no credit-risk-related contingent features associated with the intercompany floating-rate cross-currency interest rate swap.

Derivative instruments in cash flow hedging relationships

In May 2020, Woodward entered into five US dollar intercompany loans payable, with identical terms and notional values of each tranche of the 2020 Fixed-Rate Cross-Currency Swaps, together with reciprocal fixed-rate intercompany cross-currency interest rate swaps. The agreements were entered into by Euro Barbados and are designated as cash flow hedges under the criteria prescribed in ASC 815. The objective of these derivative instruments is to hedge the risk of variability in cash flows attributable to the foreign currency exchange risk of cash flows for future principal and interest payments associated with the US dollar denominated intercompany loans over a thirteen-year period, as Euro Barbados maintains a Euro functional currency.

For each of the fixed-rate intercompany cross-currency interest rate swaps, changes in the fair values of the derivative instruments are recognized in accumulated OCI and reclassified to foreign currency transaction gain or loss included in “Selling, general, and administrative costs” in Woodward’s Consolidated Statements of Earnings. Reclassifications out of accumulated OCI of the change in fair value occur each reporting period based upon changes in the spot rate remeasurement of the Euro and US dollar denominated intercompany loans, including associated interest. Hedge effectiveness is assessed based on the fair value changes of the derivative instruments and such hedges are deemed to be highly effective in offsetting exposure to variability in foreign exchange rates. There are no credit-risk-related contingent features associated with these fixed-rate cross-currency interest rate swaps.

Derivatives instruments in net investment hedging relationships

On September 23, 2016, Woodward and Woodward International Holding B.V., a wholly owned subsidiary of Woodward organized under the laws of The Netherlands (the “BV Subsidiary”), each entered into a note purchase agreement (the “2016 Note Purchase Agreement”) relating to the sale by Woodward and the BV Subsidiary of an aggregate principal amount of €160,000 of senior unsecured notes in a series of private placement transactions. Woodward issued €40,000 aggregate principal amount of Woodward’s Series M Senior Notes due September 23, 2026 (the “Series M Notes”). Woodward designated the Series M Notes as a hedge of a foreign currency exposure of Woodward’s net investment in its Euro denominated functional currency subsidiaries. Related to the Series M Notes, included in foreign currency translation adjustments within total comprehensive (losses) earnings are net foreign exchange losses of $2,381 for the fiscal year

ended September 30, 2024, compared to net foreign exchange losses of $3,090 for the fiscal year ended September 30, 2023, and net foreign exchange gains of $7,206 for the fiscal year ended September 30, 2022.

Impact of derivative instruments designated as qualifying hedging instruments

The following table discloses the amount of (income) expense recognized in earnings on derivative instruments designated as qualifying hedging instruments:

 

 

 

 

Year Ended September 30,

 

Derivatives in:

 

Location

 

2024

 

 

2023

 

 

2022

 

Cross-currency interest rate swap agreement designated as fair value hedges

 

Selling, general and administrative expenses

 

$

—

 

 

$

939

 

 

$

(2,844

)

Cross-currency interest rate swap agreements designated as cash flow hedges

 

Selling, general and administrative expenses

 

 

23,093

 

 

 

32,285

 

 

 

(66,036

)

 

 

 

$

23,093

 

 

$

33,224

 

 

$

(68,880

)

The following table discloses the amount of (gain) loss recognized in accumulated OCI on derivative instruments designated as qualifying hedging instruments:

 

 

 

 

Year Ended September 30,

 

Derivatives in:

 

Location

 

2024

 

 

2023

 

 

2022

 

Cross-currency interest rate swap agreement designated as fair value hedges

 

Selling, general and administrative expenses

 

$

—

 

 

$

875

 

 

$

(2,854

)

Cross-currency interest rate swap agreements designated as cash flow hedges

 

Selling, general and administrative expenses

 

 

18,551

 

 

 

35,712

 

 

 

(86,194

)

 

 

 

$

18,551

 

 

$

36,587

 

 

$

(89,048

)

The following table discloses the amount of (gain) loss reclassified from accumulated OCI on derivative instruments designated as qualifying hedging instruments:

 

 

 

 

Year Ended September 30,

 

Derivatives in:

 

Location

 

2024

 

 

2023

 

 

2022

 

Cross-currency interest rate swap agreement designated as fair value hedges

 

Selling, general and administrative expenses

 

$

—

 

 

$

939

 

 

$

(2,844

)

Cross-currency interest rate swap agreements designated as cash flow hedges

 

Selling, general and administrative expenses

 

 

23,093

 

 

 

32,285

 

 

 

(66,036

)

 

 

 

$

23,093

 

 

$

33,224

 

 

$

(68,880

)

The remaining unrecognized gains and losses in Woodward’s Consolidated Balance Sheets associated with derivative instruments that were previously entered into by Woodward, which are classified in accumulated OCI were net losses of $5,160 as of September 30, 2024 and $9,701 as of September 30, 2023.

v3.24.3
Supplemental Statement of Cash Flows Information
 12 Months Ended
Sep. 30, 2024
Supplemental Cash Flow Information [Abstract]  
Supplemental Statement of Cash Flows Information

Note 9. Supplemental statement of cash flows information

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Interest paid

 

$

36,700

 

 

$

35,306

 

 

$

27,435

 

Income taxes paid

 

 

152,049

 

 

 

92,509

 

 

 

29,560

 

Income tax refunds received

 

 

6,521

 

 

 

3,661

 

 

 

7,481

 

Non-cash activities:

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment on account

 

 

22,056

 

 

 

11,276

 

 

 

6,452

 

Common shares issued from treasury to settle benefit obligations

 

 

21,889

 

 

 

19,466

 

 

 

17,132

 
v3.24.3
Acquisitions
 12 Months Ended
Sep. 30, 2024
Acquisitions And Divestitures [Abstract]  
Acquisitions

Note 10. Acquisitions

On August 2, 2022, we entered into a series of Purchase Agreements with one of our Asia pacific channel partners, PM Control PLC (the “PM Agreements”). Pursuant to the PM Agreements, we agreed to acquire business assets and shares of stock of PM Control PLC and its affiliates (collectively, “PM Control”), for a total consideration (net of a working capital adjustment, excluding cash acquired from the acquisition, and including the settlement of pre-existing relationships) of $21,421 (the “PM Acquisition”). The PM Acquisition closed on August 31, 2022 (the “PM Closing”) and PM Control PLC became a wholly owned subsidiary of the Company.

ASC Topic 805, “Business Combinations” (“ASC 805”), provides a framework to account for acquisition transactions under U.S. GAAP. The purchase price of PM Control, prepared consistent with the required ASC 805 framework, is allocated as follows:

Cash paid to Sellers

 

$

22,890

 

Working capital adjustment

 

 

(878

)

Less acquired cash and restricted cash

 

 

(1,341

)

Plus settlement of pre-existing relationships

 

 

750

 

Total purchase price

 

$

21,421

 

The allocation of the purchase price to the assets acquired and liabilities assumed was finalized as of June 30, 2023 using the purchase method of accounting in accordance with ASC 805. Assets acquired and liabilities assumed in the transaction were recorded at their acquisition date fair values, while transaction costs associated with the acquisition were expensed as incurred. Woodward’s allocation was based on an evaluation of the appropriate fair values and represents management’s best estimate.
v3.24.3
Inventories
 12 Months Ended
Sep. 30, 2024
Inventory, Net [Abstract]  
Inventories

Note 11. Inventories

 

 

September 30, 2024

 

 

September 30, 2023

 

Raw materials

 

$

161,734

 

 

$

133,699

 

Work in progress

 

 

147,676

 

 

 

127,438

 

Component parts (1)

 

 

376,456

 

 

 

327,522

 

Finished goods

 

 

91,787

 

 

 

74,594

 

Customer supplied inventory

 

 

20,563

 

 

 

14,543

 

On-hand inventory for which control has transferred to the customer

 

 

(189,124

)

 

 

(159,953

)

 

$

609,092

 

 

$

517,843

 
(1)
Component parts include items that can be sold separately as finished goods or included in the manufacture of other products.
v3.24.3
Property, Plant, and Equipment
 12 Months Ended
Sep. 30, 2024
Property, Plant and Equipment, Net [Abstract]  
Property, Plant and Equipment

Note 12. Property, plant, and equipment

 

 

September 30, 2024

 

 

September 30, 2023

 

Land and land improvements

 

$

91,105

 

 

$

89,352

 

Buildings and building improvements

 

 

599,897

 

 

 

589,735

 

Leasehold improvements

 

 

22,022

 

 

 

21,079

 

Machinery and production equipment

 

 

849,595

 

 

 

807,244

 

Computer equipment and software

 

 

120,185

 

 

 

120,290

 

Office furniture and equipment

 

 

42,873

 

 

 

41,943

 

Other

 

 

33,392

 

 

 

20,073

 

Construction in progress

 

 

71,890

 

 

 

55,487

 

 

 

1,830,959

 

 

 

1,745,203

 

Less accumulated depreciation

 

 

(890,244

)

 

 

(832,109

)

Property, plant, and equipment, net

 

$

940,715

 

 

$

913,094

 

Woodward had depreciation expense as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Depreciation expense

 

$

82,578

 

 

$

82,154

 

 

$

83,019

 
v3.24.3
Goodwill
 12 Months Ended
Sep. 30, 2024
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill

Note 13. Goodwill

 

 

September 30, 2023

 

 

Effects of Foreign Currency Translation

 

 

September 30, 2024

 

Aerospace

 

$

455,423

 

 

$

—

 

 

$

455,423

 

Industrial

 

 

336,045

 

 

 

15,175

 

 

 

351,220

 

Consolidated

 

$

791,468

 

 

$

15,175

 

 

$

806,643

 

 

 

 

 

September 30, 2022

 

 

Effects of Foreign Currency Translation

 

 

September 30, 2023

 

Aerospace

 

$

455,423

 

 

$

—

 

 

$

455,423

 

Industrial

 

 

317,136

 

 

 

18,909

 

 

 

336,045

 

Consolidated

 

$

772,559

 

 

$

18,909

 

 

$

791,468

 

Woodward tests goodwill for impairment at the reporting unit level on an annual basis or at any time there is an indication goodwill may be impaired, commonly referred to as triggering events. Woodward completed its annual goodwill impairment test as of July 31, 2024 during the quarter ended September 30, 2024. The fair value of each of Woodward’s reporting units was determined using a discounted cash flow method. This method represents a Level 3 input and incorporates various estimates and assumptions, the most significant being projected revenue growth rates, earnings margins, future tax rates, and the present value, based on an estimated weighted-average cost of capital (or the discount rate) and terminal growth rate, of forecasted cash flows. Management projects revenue growth rates, earnings margins, and cash flows based on each reporting unit’s current operational results, expected performance, and operational strategies over a five-year period. These projections are adjusted to reflect current economic conditions and demand for certain products and require considerable management judgment.

Forecasted cash flows used in the July 31, 2024 impairment test were discounted using weighted-average cost of capital assumptions ranging from 10.31% to 10.33%. The terminal values of the forecasted cash flows were calculated using the Gordon Growth Model and assumed an annual compound growth rate after five years of 5.07%. These inputs, which are unobservable in the market and are Level 3 inputs, represent management’s best estimate of what market participants would use in determining the present value of the Company’s forecasted cash flows. Changes in these estimates and assumptions can have a significant impact on the fair value of forecasted cash flows. Woodward evaluated the reasonableness of the reporting units’ resulting fair values utilizing a market multiple method. The results of Woodward’s goodwill impairment test performed as of July 31, 2024 did not indicate impairment of any of Woodward’s reporting units.

v3.24.3
Intangible Assets, Net
 12 Months Ended
Sep. 30, 2024
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets, Net

Note 14. Intangible assets, net

 

 

September 30, 2024

 

 

September 30, 2023

 

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships and contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

281,683

 

 

$

(246,152

)

 

$

35,531

 

 

$

281,683

 

 

$

(236,143

)

 

$

45,540

 

Industrial

 

 

399,030

 

 

 

(114,391

)

 

 

284,639

 

 

 

378,804

 

 

 

(90,084

)

 

 

288,720

 

Total

 

$

680,713

 

 

$

(360,543

)

 

$

320,170

 

 

$

660,487

 

 

$

(326,227

)

 

$

334,260

 

Intellectual property:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Industrial

 

 

3,139

 

 

 

(3,139

)

 

 

—

 

 

 

3,139

 

 

 

(3,139

)

 

 

—

 

Total

 

$

3,139

 

 

$

(3,139

)

 

$

—

 

 

$

3,139

 

 

$

(3,139

)

 

$

—

 

Process technology:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

44,570

 

 

$

(40,346

)

 

$

4,224

 

 

$

44,570

 

 

$

(39,551

)

 

$

5,019

 

Industrial

 

 

87,257

 

 

 

(35,983

)

 

 

51,274

 

 

 

83,456

 

 

 

(31,709

)

 

 

51,747

 

Total

 

$

131,827

 

 

$

(76,329

)

 

$

55,498

 

 

$

128,026

 

 

$

(71,260

)

 

$

56,766

 

Other intangibles:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Industrial

 

 

592

 

 

 

(592

)

 

 

—

 

 

 

554

 

 

 

(524

)

 

 

30

 

Total

 

$

592

 

 

$

(592

)

 

$

—

 

 

$

554

 

 

$

(524

)

 

$

30

 

Intangible asset with indefinite life:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade name:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Industrial

 

 

64,751

 

 

 

—

 

 

 

64,751

 

 

 

61,307

 

 

 

—

 

 

 

61,307

 

Total

 

$

64,751

 

 

$

—

 

 

$

64,751

 

 

$

61,307

 

 

$

—

 

 

$

61,307

 

Total intangibles:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

326,253

 

 

$

(286,498

)

 

$

39,755

 

 

$

326,253

 

 

$

(275,694

)

 

$

50,559

 

Industrial

 

 

554,769

 

 

 

(154,105

)

 

 

400,664

 

 

 

527,260

 

 

 

(125,456

)

 

 

401,804

 

Consolidated Total

 

$

881,022

 

 

$

(440,603

)

 

$

440,419

 

 

$

853,513

 

 

$

(401,150

)

 

$

452,363

 

Indefinite lived intangible assets

The Woodward L’Orange trade name intangible asset is tested for impairment on an annual basis and more often if an event occurs or circumstances change that indicate the fair value of the Woodward L’Orange intangible asset may be below its carrying amount. The impairment test consists of comparing the fair value of the Woodward L’Orange trade name intangible asset, determined using discounted cash flows based on the relief from royalty method under the income approach, with its carrying amount. If the carrying amount of the Woodward L’Orange trade name intangible asset exceeds its fair value, an impairment loss would be recognized to reduce the carrying amount to its fair value. Woodward has not recognized any impairment charges for this asset.

During the fourth quarter, Woodward completed its annual impairment test of the Woodward L’Orange trade name intangible asset as of July 31, 2024 for the fiscal year ended September 30, 2024. The fair value of the Woodward L’Orange trade name intangible assets was determined using discounted cash flows based on the relief from royalty method under the income approach. This method represents a Level 3 input and incorporates various estimates and assumptions, the most significant being projected revenue growth rates, royalty rates, future tax rates, and the present value, based on an estimated weighted-average cost of capital (or the discount rate) and terminal growth rate, of the forecasted cash flow. Management projects revenue growth rates and cash flows based on Woodward L’Orange’s current operational results, expected performance, and operational strategies over a five year period. These projections are adjusted to reflect current economic conditions and demand for certain products and require considerable management judgment.

The forecasted cash flow used in the July 31, 2024 impairment test was discounted using weighted-average cost of capital assumption of 10.20%. The terminal value of the forecasted cash flow was calculated using the Gordon Growth Model and assumed an annual compound growth rate after five years of 5.07%. These inputs, which are unobservable in the market and are Level 3 inputs, represent management’s best estimate of what market participants would use in determining the present value of the Company’s forecasted cash flows. Changes in these estimates and assumptions can have a significant impact on the fair value of the forecasted cash flow. The results of impairment test performed as of July 31, 2024 indicated the estimated fair value of the Woodward L’Orange trade name intangible asset was in excess of its carrying value, and accordingly, no impairment existed.

Finite-lived intangible assets

Woodward recorded amortization expense associated with intangibles of the following:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Amortization expense

 

$

33,592

 

 

$

37,589

 

 

$

37,609

 

Future amortization expense associated with intangibles is expected to be:

Year Ending September 30:

 

 

 

2025

 

$

28,360

 

2026

 

 

28,350

 

2027

 

 

28,297

 

2028

 

 

27,704

 

2029

 

 

26,375

 

Thereafter

 

 

236,582

 

 

$

375,668

 
v3.24.3
Credit Facilities, Short-term Borrowings and Long-term Debt
 12 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Credit Facilities, Short-term Borrowings and Long-term Debt

Note 15. Credit facilities, short-term borrowings, and long-term debt

As of September 30, 2024, Woodward’s short-term borrowings and availability under its various short-term credit facilities follows:

 

 

Total availability

 

 

Outstanding
letters of credit
and guarantees

 

 

Banker acceptance notes issued

 

 

Outstanding
borrowings

 

 

Remaining
availability

 

Revolving credit facility

 

$

1,000,000

 

 

$

(7,864

)

 

$

—

 

 

$

(217,000

)

 

$

775,136

 

Foreign lines of credit and overdraft facilities

 

 

25,604

 

 

 

(244

)

 

 

(5,589

)

 

 

—

 

 

 

19,771

 

Foreign performance guarantee facilities

 

 

97

 

 

 

(59

)

 

 

—

 

 

 

—

 

 

 

38

 

 

 

$

1,025,701

 

 

$

(8,167

)

 

$

(5,589

)

 

$

(217,000

)

 

$

794,945

 

Revolving credit facility

Woodward maintains a $1,000,000 revolving credit facility established under a revolving credit agreement among Woodward, a syndicate of lenders and Wells Fargo Bank, National Association, as administrative agent, which provides for the option to increase available borrowings up to $1,500,000, subject to lenders' participation (as amended in October 2022, the "Second Amended and Restated Revolving Credit Agreement"). Borrowings under the Second Amended and Restated Revolving Credit Agreement can be made by Woodward and certain of its foreign subsidiaries in U.S. dollars or in foreign currencies other than the U.S. dollar and generally bear interest at the Euro Interbank Offered Rate ("Euribor"), Sterling Overnight Index Average ("SONIA"), Tokyo Interbank Offered Rate ("TIBOR"), and Secured Overnight Financing Rate ("SOFR") base rates plus 0.875% to 1.75%. The Second Amended and Restated Revolving Credit Agreement matures on October 21, 2027. Under the Second Amended and Restated Revolving Credit Agreement, there were $217,000 in principal borrowings outstanding as of September 30, 2024, at an effective interest rate of 5.82%, compared to no borrowings outstanding as of September 30, 2023.

The Second Amended and Restated Revolving Credit Agreement contains certain covenants customary with such agreements, which are generally consistent with the covenants applicable to Woodward’s long-term debt agreements, and contains customary events of default, including certain cross default provisions related to Woodward’s other outstanding material debt arrangements, the occurrence of which would permit the lenders to accelerate the amounts due thereunder. In addition, the Second Amended and Restated Revolving Credit Agreement includes the following financial covenants: (i) a maximum permitted leverage ratio of consolidated net debt to consolidated earnings before interest, taxes, depreciation,

stock-based compensation, and amortization, plus any unusual non-cash charges to the extent deducted in computing net income and transaction costs associated with permitted acquisitions (incurred within six-months of the permitted acquisition), minus any unusual non-cash gains to the extent added in computing net income (“Leverage Ratio”) for Woodward and its consolidated subsidiaries of 3.5 to 1.0, which ratio, subject to certain restrictions, may increase to 4.0 to 1.0 for each period of four consecutive quarters during which a permitted acquisition occurs, and (ii) a minimum consolidated net worth of $1,156,000 plus (a) 50% of Woodward’s positive net income for the prior fiscal year and (b) 50% of Woodward’s net cash proceeds resulting from certain issuances of stock, subject to certain adjustments.

The obligations of Woodward and from time-to-time certain of Woodward’s foreign subsidiaries, under the Second Amended and Restated Revolving Credit Agreement are guaranteed by Woodward MPC, Inc., Woodward HRT, Inc., or in case of obligations with any foreign subsidiaries of Woodward that are borrowers thereunder, Woodward L’Orange GmbH, each of which is a wholly owned subsidiary of Woodward.

Short-term borrowings

Woodward has other foreign lines of credit and foreign overdraft facilities at various financial institutions, which are generally reviewed annually for renewal and are subject to the usual terms and conditions applied by the financial institutions. Pursuant to the terms of the related facility agreements, Woodward’s foreign performance guarantee facilities are limited in use to providing performance guarantees to third parties.

Consistent with common business practice in China, Woodward's Chinese subsidiaries have issued bankers' acceptance notes ("Bank drafts") to Chinese suppliers in settlement of certain customer accounts payable. Bank drafts are financial instruments issued by Chinese financial institutions as part of financing arrangements between the financial institution and a customer of the financial institution. Bank drafts represent a commitment by the issuing financial institution to pay a certain amount of money at a specified future maturity date to the legal owner of the bankers' acceptance note as of the maturity date. Woodward has elected to adopt the practical expedient to not adjust the promised amounts of consideration at contract inception as the financing component associated with issuing bank drafts has a duration of less than one year. There were no borrowings outstanding on Woodward’s foreign lines of credit and foreign overdraft facilities as of both September 30, 2024 and September 30, 2023.

Long-term debt

 

 

September 30, 2024

 

 

September 30, 2023

 

Series H notes – 4.03%, due November 15, 2023; unsecured

 

$

—

 

 

$

25,000

 

Series I notes – 4.18%, due November 15, 2025; unsecured

 

 

25,000

 

 

 

25,000

 

Series K notes – 4.03%, due November 15, 2023; unsecured

 

 

—

 

 

 

50,000

 

Series L notes – 4.18%, due November 15, 2025; unsecured

 

 

50,000

 

 

 

50,000

 

Series M notes – 1.12% due September 23, 2026; unsecured

 

 

44,656

 

 

 

42,280

 

Series N notes – 1.31% due September 23, 2028; unsecured

 

 

85,963

 

 

 

81,390

 

Series O notes – 1.57% due September 23, 2031; unsecured

 

 

48,005

 

 

 

45,451

 

Series P notes – 4.27% due May 30, 2025; unsecured

 

 

85,000

 

 

 

85,000

 

Series Q notes – 4.35% due May 30, 2027; unsecured

 

 

85,000

 

 

 

85,000

 

Series R notes – 4.41% due May 30, 2029; unsecured

 

 

75,000

 

 

 

75,000

 

Series S notes – 4.46% due May 30, 2030; unsecured

 

 

75,000

 

 

 

75,000

 

Series T notes – 4.61% due May 30, 2033; unsecured

 

 

80,000

 

 

 

80,000

 

Finance leases (Note 5)

 

 

2,736

 

 

 

3,550

 

Unamortized debt issuance costs

 

 

(890

)

 

 

(1,145

)

Total long-term debt

 

 

655,470

 

 

 

721,526

 

Less: Current portion of long-term debt

 

 

85,719

 

 

 

75,817

 

Long-term debt, less current portion

 

$

569,751

 

 

$

645,709

 

The Notes

On October 1, 2013, Woodward entered into a note purchase agreement relating to the sale by Woodward of an aggregate principal amount of $250,000 of its senior unsecured notes in a series of private placement transactions. Woodward issued the Series H and I Notes (the “First Closing Notes”) on October 1, 2013. Woodward issued the Series K and L Notes (the “Second Closing Notes” and with the First Closing Notes, collectively the “USD Notes”) on November 15, 2013. On November 15, 2023, Woodward paid the entire principal balance of $75,000 on the Series H and K Notes using proceeds from borrowings under its existing revolving credit facility.

On September 23, 2016, Woodward and the BV Subsidiary each entered into note purchase agreements (the “2016 Note Purchase Agreements”) relating to the sale by Woodward and the BV Subsidiary of an aggregate principal amount of

€160,000 of senior unsecured notes in a series of private placement transactions. Woodward issued €40,000 Series M Notes. The BV Subsidiary issued (a) €77,000 aggregate principal amount of the BV Subsidiary’s Series N Senior Notes (the “Series N Notes”) and (b) €43,000 aggregate principal amount of the BV Subsidiary’s Series O Senior Notes (the “Series O Notes” and together with the Series M Notes and the Series N Notes, the “2016 Notes”).

On May 31, 2018, Woodward entered into a note purchase agreement (the “2018 Note Purchase Agreement”) relating to the sale by Woodward of an aggregate principal amount of $400,000 of senior unsecured notes comprised of (a) $85,000 aggregate principal amount of its Series P Senior Notes (the “Series P Notes”), (b) $85,000 aggregate principal amount of its Series Q Senior Notes (the “Series Q Notes”), (c) $75,000 aggregate principal amount of its Series R Senior Notes (the “Series R Notes”), (d) $75,000 aggregate principal amount of its Series S Senior Notes (the “Series S Notes”), and (e) $80,000 aggregate principal amount of its Series T Senior Notes (the “Series T Notes”, and together with the Series P Notes, the Series Q Notes, the Series R Notes, and the Series S Notes, the “2018 Notes,” and, together with the USD Notes and 2016 Notes, the “Notes”), in a series of private placement transactions.

In connection with the issuance of the 2018 Notes, the Company entered into cross-currency swap transactions in respect of each tranche of the 2018 Notes, which effectively reduced the interest rates on the Series P Notes to 1.82% per annum, the Series Q Notes to 2.15% per annum, the Series R Notes to 2.42% per annum, the Series S Notes to 2.55% per annum and the Series T Notes to 2.90% per annum. The Company entered into the 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps, which effectively resulted in the interest rates on the Series P Notes being 3.44% per annum, the Series Q Notes to 3.44% per annum, the Series R Notes to 3.45% per annum, the Series S Notes to 3.50% per annum and the Series T Notes to 3.62% per annum (see Note 8, Derivative instruments and hedging activities).

Interest on the USD Notes are payable semi-annually on April 1 and October 1 of each year until all principal is paid. Interest on the 2016 Notes is payable semi-annually on March 23 and September 23 of each year, until all principal is paid.

None of the Notes were registered under the Securities Act of 1933 and they may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Holders of the Notes do not have any registration rights. All of the issued Notes are held by multiple institutions.

Woodward’s payment and performance obligations under the Notes, including without limitation the obligations for payment of all principal, interest, and any applicable prepayment compensation amount, are guaranteed by (i) Woodward FST, Inc., Woodward MPC, Inc., and Woodward HRT, Inc., each of which is a wholly owned subsidiary of Woodward, and (ii) in the case of the BV Subsidiary’s Series N and O Notes, by Woodward. Woodward’s obligations under the Notes rank equal in right of payment with all of Woodward’s other unsecured unsubordinated debt, including its outstanding debt under its revolving credit facility.

The Notes contain restrictive covenants customary for such financings, including, among other things, covenants that place limits on Woodward’s ability to incur liens on assets, incur additional debt (including a leverage or coverage-based maintenance test), transfer or sell Woodward’s assets, merge or consolidate with other persons and enter into material transactions with affiliates. Under the financial covenants contained in the note purchase agreement governing each series of the Notes, Woodward’s priority debt may not exceed, at any time, 15% of its consolidated net worth. Woodward’s Leverage Ratio cannot exceed 4.0 to 1.0 during any material acquisition period, or 3.5 to 1.0 at any other time on a rolling four quarter basis. In the event that Woodward’s Leverage Ratio exceeds 3.5 to 1.0 during any material acquisition period, the interest rate on each series of Notes will increase. The minimum consolidated net worth, prior year positive net income, and net cash proceeds resulting from certain issuances of stock for satisfaction of Woodward’s leverage ratio are consistent between the Notes and Revolving Credit Agreement.

Required future principal payments of the Notes and financing leases as of September 30, 2024 are as follows:

Year Ending September 30:

 

 

 

2025

 

$

85,719

 

2026

 

 

119,658

 

2027

 

 

85,021

 

2028

 

 

87,209

 

2029

 

 

75,000

 

Thereafter

 

 

203,753

 

 

$

656,360

 

 

Certain financial and other covenants under Woodward’s debt agreements contain customary restrictions on the operation of its business. Management believes that Woodward was in compliance with the covenants under the long-term debt agreements at September 30, 2024.

Debt Issuance Costs

In connection with the Second Amended and Restated Revolving Credit Agreement, Woodward incurred $2,236 in debt issuance costs, which are deferred and are being amortized using the straight-line method over the life of the agreement. Amounts recognized as interest expense from the amortization of debt issuance costs were $929 in fiscal year 2024, $963 in fiscal year 2023, and $917 in fiscal year 2022. Unamortized debt issuance costs associated with the Notes of $890 as of September 30, 2024 and $1,145 as of September 30, 2023 were recorded as a reduction in “Long-term debt, less current portion” in the Consolidated Balance Sheets. Unamortized debt issuance costs associated with Woodward’s Revolving Credit Agreements of $1,977 as of September 30, 2024 and $2,636 as of September 30, 2023 were recorded as “Other assets” in the Consolidated Balance Sheets. Amortization of debt issuance costs is included in operating activities in the Consolidated Statements of Cash Flows.
v3.24.3
Accrued Liabilities
 12 Months Ended
Sep. 30, 2024
Accrued Liabilities, Current [Abstract]  
Accrued Liabilities

Note 16. Accrued liabilities

 

 

September 30, 2024

 

 

September 30, 2023

 

Salaries and other member benefits

 

$

151,921

 

 

$

146,713

 

Product warranties and related liabilities

 

 

18,844

 

 

 

18,162

 

Interest payable

 

 

12,163

 

 

 

13,611

 

Accrued retirement benefits

 

 

2,888

 

 

 

2,822

 

Net current contract liabilities

 

 

56,791

 

 

 

33,748

 

Taxes, other than income

 

 

15,884

 

 

 

13,436

 

Other

 

 

34,151

 

 

 

34,124

 

 

 

$

292,642

 

 

$

262,616

 

Product warranties and related liabilities

Provisions of Woodward’s sales agreements include product warranties customary to these types of agreements. Accruals are established for specifically identified warranty issues and related liabilities 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 and related liabilities were as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Beginning of period

 

$

18,162

 

 

$

40,042

 

 

$

17,481

 

Additions, net of recoveries

 

 

13,797

 

 

 

25,984

 

 

 

29,827

 

Reductions for settlement

 

 

(13,368

)

 

 

(47,949

)

 

 

(6,937

)

Foreign currency exchange rate changes

 

 

253

 

 

 

85

 

 

 

(329

)

End of period

 

$

18,844

 

 

$

18,162

 

 

$

40,042

 

Restructuring charges

During fiscal year 2023, the Company committed to a cost reduction plan ("Cost Reduction Plan") to better align the cost structure and recorded $5,172 of restructuring charges. The charges recognized under the Cost Reduction Plan consist of workforce management costs primarily related to aligning the cost structure of the Company's Industrial segment with the current market conditions. All of the restructuring charges were recorded as nonsegment expenses and were paid as of September 30, 2023.

In fiscal year 2022, the Company determined to implement a streamlined Aerospace and Industrial organizational and leadership structure designed to enhance the sales experience for customers, simplify operations, and increase profitability through improved execution. In connection with leadership changes arising from such reorganization, we recorded $1,083 of restructuring charges as nonsegment expenses and were paid as of September 30, 2023.

In fiscal year 2021, the Company recorded aggregate restructuring charges totaling $5,008 as nonsegment expenses for two separate workforce management actions, one in our hydraulics systems business and one in our engine systems business. In fiscal year 2022, we experienced a challenging operating environment that included the ongoing impact of global supply chain and labor disruptions, along with high inflation, which resulted in changed business conditions as compared to when we initially recorded the restructuring charges in fiscal year 2021. We adapted to the changed business conditions by, among other initiatives, (i) developing and implementing plans to insource select machined components, (ii)

redeploying talent and adding indirect resources to our factories to stabilize the production environment, and (iii) determining to retain employees that otherwise would have been impacted by the planned restructuring activities to support a stable workforce and effectively manage through attrition. As such, the remaining unpaid accrued restructuring charges, which amounted to $4,503, were no longer needed and were reversed.

The summary of activity in accrued restructuring charges is as follows:

 

 

 

 

 

Period Activity

 

 

 

 

 

 

September 30, 2022

 

 

Charges

 

 

Payments

 

 

Non-cash
activity

 

 

September 30, 2023

 

Workforce management costs associated with:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost reduction plan

 

$

—

 

 

$

5,172

 

 

$

(5,207

)

 

$

35

 

 

$

—

 

Aerospace

 

 

139

 

 

 

—

 

 

 

(139

)

 

 

—

 

 

 

—

 

Industrial

 

 

944

 

 

 

—

 

 

 

(944

)

 

 

—

 

 

 

—

 

Total

 

$

1,083

 

 

$

5,172

 

 

$

(6,290

)

 

$

35

 

 

$

—

 

There were no restructuring charges during the year ended September 30, 2024.
v3.24.3
Other Liabilities
 12 Months Ended
Sep. 30, 2024
Other Liabilities, Noncurrent [Abstract]  
Other Liabilities

Note 17. Other liabilities

 

 

September 30, 2024

 

 

September 30, 2023

 

Net accrued retirement benefits, less amounts recognized within accrued liabilities

 

$

83,094

 

 

$

72,570

 

Total unrecognized tax benefits

 

 

10,104

 

 

 

8,020

 

Noncurrent income taxes payable

 

 

5,894

 

 

 

10,714

 

Deferred economic incentives (1)

 

 

7,062

 

 

 

5,797

 

Noncurrent operating lease liabilities

 

 

22,670

 

 

 

20,685

 

Cross-currency swap derivative liability

 

 

10,562

 

 

 

—

 

Net noncurrent contract liabilities

 

 

424,609

 

 

 

414,657

 

Other

 

 

13,385

 

 

 

11,047

 

 

$

577,380

 

 

$

543,490

 
(1)
Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects.
v3.24.3
Other (Income) Expense, Net
 12 Months Ended
Sep. 30, 2024
Nonoperating Income (Expense) [Abstract]  
Other (Income) Expense, Net

Note 18. Other (income) expense, net

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Equity interest in the earnings of the JV

 

$

(41,191

)

 

$

(36,846

)

 

$

(18,193

)

Net (gain) loss on sales of assets and businesses

 

 

(457

)

 

 

1,491

 

 

 

(1,775

)

Gain on non-recurring matter related to a previous acquisition

 

 

(4,803

)

 

 

—

 

 

 

—

 

Rent income

 

 

(347

)

 

 

(360

)

 

 

(672

)

Net (gain) loss on investments in deferred compensation program

 

 

(6,571

)

 

 

(3,265

)

 

 

6,295

 

Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense

 

 

(11,764

)

 

 

(10,547

)

 

 

(11,572

)

Other

 

 

(2,035

)

 

 

(764

)

 

 

(774

)

 

$

(67,168

)

 

$

(50,291

)

 

$

(26,691

)
v3.24.3
Income Taxes
 12 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 19. Income taxes

Income taxes consisted of the following:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

46,102

 

 

$

41,195

 

 

$

21,869

 

State

 

 

4,841

 

 

 

2,641

 

 

 

2,310

 

Foreign

 

 

74,663

 

 

 

39,719

 

 

 

27,577

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(18,888

)

 

 

(38,136

)

 

 

(13,216

)

State

 

 

(7,341

)

 

 

(10,006

)

 

 

(8,623

)

Foreign

 

 

(18,377

)

 

 

7,987

 

 

 

(1,717

)

 

 

$

81,000

 

 

$

43,400

 

 

$

28,200

 

 

Earnings before income taxes by geographical area consisted of the following:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

United States

 

$

244,320

 

 

$

122,389

 

 

$

99,427

 

Other countries

 

 

209,651

 

 

 

153,379

 

 

 

100,471

 

 

 

$

453,971

 

 

$

275,768

 

 

$

199,898

 

Significant components of deferred income taxes presented in the Consolidated Balance Sheets are related to the following:

 

 

September 30, 2024

 

 

September 30, 2023

 

Deferred tax assets:

 

 

 

 

 

 

Defined benefit plans, other postretirement

 

$

3,695

 

 

$

3,769

 

Foreign net operating loss carryforwards

 

 

6,547

 

 

 

3,748

 

Inventory

 

 

77,013

 

 

 

68,034

 

Stock-based and other compensation

 

 

48,360

 

 

 

51,099

 

Deferred revenue net of unbilled receivables

 

 

43,400

 

 

 

46,283

 

Other reserves

 

 

7,850

 

 

 

8,244

 

Tax credits and incentives

 

 

30,886

 

 

 

28,319

 

Lease obligations

 

 

6,851

 

 

 

6,103

 

Other

 

 

4,622

 

 

 

4,476

 

Capitalized research and development costs

 

 

63,080

 

 

 

37,328

 

Valuation allowance

 

 

(5,983

)

 

 

(3,827

)

Total deferred tax assets, net of valuation allowance

 

 

286,321

 

 

 

253,576

 

Deferred tax liabilities:

 

 

 

 

 

 

Goodwill and intangibles - net

 

 

(198,012

)

 

 

(194,891

)

Property, plant and equipment

 

 

(97,340

)

 

 

(99,547

)

Right of use assets

 

 

(6,691

)

 

 

(5,948

)

Defined benefit plans, pension

 

 

(13,133

)

 

 

(9,892

)

Other

 

 

(8,612

)

 

 

(17,568

)

Total deferred tax liabilities

 

 

(323,788

)

 

 

(327,846

)

Net deferred tax liabilities

 

$

(37,467

)

 

$

(74,270

)

Woodward has recorded a net operating loss (“NOL”) deferred tax asset of $6,547 as of September 30, 2024 and $3,748 as of September 30, 2023. The majority of the NOL carryforwards as of September 30, 2024 expire at various times beginning in fiscal years 2027 through 2029.

Woodward has recorded tax credits and incentives deferred tax assets of $30,886 as of September 30, 2024 and $28,319 as of September 30, 2023. The majority of the tax credit and incentive carryforwards as of September 30, 2024 expire at various times beginning in fiscal year 2025 through 2035.

Deferred tax assets are reduced by a valuation allowance when the realization of the deferred tax asset is less than 50 percent likely. Both positive and negative evidence are considered in forming Woodward’s judgment as to whether a valuation allowance is appropriate, and more weight is given to evidence that can be objectively verified. Valuation allowances are reassessed whenever there are changes in circumstances that may cause a change in judgment.

The change in the valuation allowance was primarily the result of adjusting an existing valuation allowance for a current year foreign net operating loss that we assess is not realizable.

At September 30, 2024, Woodward has not provided for taxes on undistributed foreign earnings of $361,600 that it considered indefinitely reinvested. This balance has been reduced for foreign earnings that are now considered distributable and resulted in the booking of an associated net deferred tax liability of approximately $6,100 in the quarter. These earnings could become subject to income taxes if they are remitted as dividends, are loaned to Woodward or any of Woodward’s subsidiaries located in the United States, or if Woodward sells its stock in the foreign subsidiaries. Any additional U.S. taxes could be offset, in part or in whole, by foreign tax credits. The amount of such taxes and application of tax credits would be dependent on the income tax laws and other circumstances at the time these amounts are repatriated. Based on these variables, it is impractical to determine the income tax liability that might be incurred if these funds were to be repatriated.

The following is a reconciliation of the U.S. federal statutory tax 21% in the fiscal years ended September 30, 2024, September 30, 2023, and September 30, 2022 to Woodward’s effective income tax rate:

 

 

Year Ending September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Percent of pretax earnings

 

 

 

 

 

 

 

 

 

Statutory tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income taxes, net of federal tax benefit

 

 

(0.4

)

 

 

(1.6

)

 

 

(2.5

)

Taxes on international activities

 

 

(0.8

)

 

 

(0.6

)

 

 

0.8

 

Research credit

 

 

(2.1

)

 

 

(3.9

)

 

 

(4.5

)

Net excess income tax benefit from stock-based compensation

 

 

(3.0

)

 

 

(3.7

)

 

 

(2.5

)

Adjustments of prior period tax items

 

 

0.9

 

 

 

(1.3

)

 

 

—

 

Compensation and benefits

 

 

0.8

 

 

 

0.6

 

 

 

0.3

 

Distributable foreign earnings

 

 

1.4

 

 

 

4.6

 

 

 

—

 

Other items, net

 

 

—

 

 

 

0.6

 

 

 

1.5

 

Effective tax rate

 

 

17.8

%

 

 

15.7

%

 

 

14.1

%

In determining the tax amounts in Woodward’s financial statements, estimates are sometimes used that are subsequently adjusted in the actual filing of tax returns or by updated calculations. In addition, Woodward occasionally has resolutions of tax items with tax authorities related to prior years due to the conclusion of audits and the lapse of applicable statutes of limitations. Such adjustments are included in the “Adjustments of prior period tax items” line in the above table.

The increase in the effective tax rate for fiscal year 2024 compared to fiscal year 2023 is primarily attributable to a smaller research and development credit, smaller net excess income tax benefit from stock-based compensation as percent of current year earnings, fewer resolutions of tax items with taxing authorities in the current fiscal year, and increased return to provision items in the current fiscal year. This increase is partially offset by smaller current fiscal year projected future withholding taxes on unremitted earnings.

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows:

 

 

Year Ending September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Beginning balance

 

$

11,112

 

 

$

11,938

 

 

$

15,199

 

Additions to current year tax positions

 

 

5,673

 

 

 

3,933

 

 

 

1,783

 

Reductions to prior year tax positions

 

 

(99

)

 

 

(141

)

 

 

(963

)

Additions to prior year tax positions

 

 

180

 

 

 

—

 

 

 

112

 

Lapse of applicable statute of limitations

 

 

(2,592

)

 

 

(4,618

)

 

 

(4,193

)

Ending balance

 

$

14,274

 

 

$

11,112

 

 

$

11,938

 

Included in the balance of unrecognized tax benefits were $8,003 as of September 30, 2024 and $6,963 as of September 30, 2023 of tax benefits that, if recognized, would affect the effective tax rate. At this time, Woodward estimates that it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $1,909 in the next twelve months due to the completion of review by tax authorities, lapses of statutes, and the settlement of tax positions. Woodward accrues for potential interest and penalties related to unrecognized tax benefits and all other interest and penalties related to tax payments in tax expense.

Woodward’s tax returns are subject to audits by U.S. federal, state, and foreign tax authorities, and these audits are at various stages of completion at any given time. Reviews of tax matters by authorities and lapses of the applicable statutes of limitation may result in changes to tax expense. Woodward’s fiscal years remaining open to examination for U.S. federal income taxes include fiscal years 2021 and thereafter. Woodward’s fiscal years remaining open to examination for significant U.S. state income tax jurisdictions include fiscal years 2018 and thereafter. Woodward’s, fiscal years remaining open to examination in significant foreign jurisdictions include 2018 and thereafter.
v3.24.3
Retirement Benefits
 12 Months Ended
Sep. 30, 2024
Retirement Benefits [Abstract]  
Retirement Benefits

Note 20. Retirement benefits

Woodward provides various retirement benefits to eligible members of the Company, including contributions to various defined contribution plans, pension benefits associated with defined benefit plans, postretirement medical benefits, and postretirement life insurance benefits. Eligibility requirements and benefit levels vary depending on employee location.

Defined contribution plans

Most of the Company’s U.S. employees are eligible to participate in the U.S. defined contribution plan. The U.S. defined contribution plan allows employees to defer part of their annual income for income tax purposes into their personal 401(k) accounts. The Company makes matching contributions to eligible employee accounts, which are also deferred for employee personal income tax purposes. Certain non-U.S. employees are also eligible to participate in similar non-U.S. plans.

Most of Woodward's U.S. employees receive an annual contribution of Woodward stock, equal to 5% of their eligible prior year wages, to their personal Woodward Retirement Savings Plan accounts. In the second quarters of fiscal years 2024, 2023, and 2022, Woodward fulfilled its annual Woodward stock contribution obligation using shares held in treasury stock by issuing a total of 159 shares of common stock for a value of $21,889 in fiscal year 2024, 188 total shares of common stock for a value of $19,466 in fiscal year 2023, and 150 shares of common stock for a value of $17,132 in fiscal year 2022. The Woodward Retirement Savings Plan (the “WRS Plan”) held 2,222 shares of Woodward stock as of September 30, 2024 and 2,441 shares as of September 30, 2023. The shares held in the WRS Plan participate in dividends and are considered issued and outstanding for purposes of calculating basic and diluted earnings per share. Accrued liabilities included obligations to contribute shares of Woodward common stock to the WRS Plan in the amount of $19,532 as of September 30, 2024 and $16,634 as of September 30, 2023.

The amount of expense associated with defined contribution plans was as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Company costs

 

$

51,148

 

 

$

44,202

 

 

$

40,898

 

Defined benefit plans

Woodward has defined benefit plans that provide pension benefits for certain retired employees in the United States, the United Kingdom, Japan, and Germany. Woodward also provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees and their covered dependents and beneficiaries in the United States and the United Kingdom. Life insurance benefits are provided to certain retirees in the United States under frozen plans, which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for all of Woodward’s defined benefit pension and other postretirement benefit plans.

Excluding the Woodward HRT Plan, which is only partially frozen to salaried participants, the defined benefit plans in the United States were frozen in fiscal year 2007; no additional employees may participate in the U.S. plans, and no additional service costs will be incurred.

Pension Plans

The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of retirement pension benefits were as follows:

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

United States:

 

 

 

 

 

 

 

 

 

Weighted-average assumptions to determine benefit obligation:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

5.05

%

 

 

6.20

%

 

 

5.70

%

Weighted-average assumptions to determine periodic benefit costs:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

6.20

 

 

 

5.70

 

 

 

3.05

 

Long-term rate of return on plan assets

 

 

6.03

 

 

 

5.53

 

 

 

5.00

 

The discount rate assumption is intended to reflect the rate at which the retirement benefits could be effectively settled based upon the assumed timing of the benefit payments.

In the United States, Woodward uses a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding to determine the benefit obligations at year end.

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

United Kingdom:

 

 

 

 

 

 

 

 

 

Weighted-average assumptions to determine benefit obligation:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

5.28

%

 

 

5.85

%

 

 

5.35

%

Rate of compensation increase

 

 

3.40

 

 

 

3.60

 

 

 

4.00

 

Weighted-average assumptions to determine periodic benefit costs:

 

 

 

 

 

 

 

 

 

Discount rate - service cost

 

 

5.91

 

 

 

4.99

 

 

 

2.15

 

Discount rate - interest cost

 

 

5.84

 

 

 

5.71

 

 

 

1.83

 

Rate of compensation increase

 

 

3.60

 

 

 

4.00

 

 

 

4.00

 

Long-term rate of return on plan assets

 

 

4.90

 

 

 

4.80

 

 

 

3.80

 

 

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Japan:

 

 

 

 

 

 

 

 

 

Weighted-average assumptions to determine benefit obligation:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

1.92

%

 

 

2.01

%

 

 

1.60

%

Rate of compensation increase

 

 

3.00

 

 

 

2.00

 

 

 

2.00

 

Weighted-average assumptions to determine periodic benefit costs:

 

 

 

 

 

 

 

 

 

Discount rate - service cost

 

 

2.20

 

 

 

1.78

 

 

 

1.13

 

Discount rate - interest cost

 

 

1.58

 

 

 

1.17

 

 

 

0.65

 

Rate of compensation increase

 

 

2.00

 

 

 

2.00

 

 

 

2.25

 

Long-term rate of return on plan assets

 

 

3.25

 

 

 

2.75

 

 

 

2.00

 

 

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Germany:

 

 

 

 

 

 

 

 

 

Weighted-average assumptions to determine benefit obligation:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

3.58

%

 

 

4.27

%

 

 

3.97

%

Rate of compensation increase

 

 

2.50

 

 

 

2.50

 

 

 

2.50

 

Weighted-average assumptions to determine periodic benefit costs:

 

 

 

 

 

 

 

 

 

Discount rate - service cost

 

 

4.23

 

 

 

3.95

 

 

 

1.54

 

Discount rate - interest cost

 

 

4.29

 

 

 

3.91

 

 

 

1.06

 

Rate of compensation increase

 

 

2.50

 

 

 

2.50

 

 

 

2.50

 

In the United Kingdom, Germany, and Japan, Woodward uses a high-quality corporate bond yield curve matched with separate cash flows to develop a single rate to determine the single rate equivalent to settle the entire benefit obligations in each jurisdiction. For the fiscal years ended September 30, 2024 and 2023, the discount rate used to determine periodic service cost and interest cost components of the overall benefit costs was based on spot rates derived from the same high-quality corporate bond yield curve used to determine the September 30, 2023 and 2022 benefit obligation, respectively, matched with separate cash flows for each future year.

Compensation increase assumptions, where applicable, are based upon historical experience and anticipated future management actions.

In determining the long-term rate of return on plan assets, Woodward assumes that the historical long-term compound growth rates of equity and fixed-income securities will predict the future returns of similar investments in the plan portfolio. Investment management and other fees paid out of the plan assets are factored into the determination of asset return assumptions.

Mortality assumptions are based on published mortality studies developed primarily based on past experience of the broad population and modified for projected longevity trends. The projected benefit obligations in the United States as of September 30, 2024 and September 30, 2023 were based on the Society of Actuaries (“SOA”) Pri-2012 Mortality Tables Report using the SOA’s Mortality Improvement Scale MP-2019 (“MP-2019”) and projected forward using a custom projection scale based on MP-2019 with a 5-year convergence period and a long-term rate of 0.75%.

As of September 30, 2024 and September 30, 2023, mortality assumptions in Japan were based on the Standard rates 2020, and mortality assumptions for the United Kingdom pension scheme were based on the self-administered pension

scheme (“SAPS”) S3 “all” tables with a projected 1.5% annual improvement rate. As of September 30, 2024 and September 30, 2023, mortality assumptions in Germany were based on the Heubeck 2018 G mortality tables.

Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statement of Earnings:

 

 

Year Ended September 30,

 

 

 

United States

 

 

Other Countries

 

 

Total

 

 

 

2024

 

 

2023

 

 

2022

 

 

2024

 

 

2023

 

 

2022

 

 

2024

 

 

2023

 

 

2022

 

Service cost

 

$

775

 

 

$

893

 

 

$

1,554

 

 

$

1,244

 

 

$

1,333

 

 

$

2,339

 

 

$

2,019

 

 

$

2,226

 

 

$

3,893

 

Interest cost

 

 

7,598

 

 

 

7,297

 

 

 

5,281

 

 

 

3,213

 

 

 

3,137

 

 

 

1,612

 

 

 

10,811

 

 

 

10,434

 

 

 

6,893

 

Expected return on plan assets

 

 

(9,084

)

 

 

(8,297

)

 

 

(10,853

)

 

 

(2,406

)

 

 

(2,300

)

 

 

(2,434

)

 

 

(11,490

)

 

 

(10,597

)

 

 

(13,287

)

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss (gain)

 

 

226

 

 

 

292

 

 

 

259

 

 

 

(679

)

 

 

(620

)

 

 

555

 

 

 

(453

)

 

 

(328

)

 

 

814

 

Net prior service cost

 

 

698

 

 

 

698

 

 

 

981

 

 

 

23

 

 

 

22

 

 

 

23

 

 

 

721

 

 

 

720

 

 

 

1,004

 

Net periodic cost (benefit)

 

$

213

 

 

$

883

 

 

$

(2,778

)

 

$

1,395

 

 

$

1,572

 

 

$

2,095

 

 

$

1,608

 

 

$

2,455

 

 

$

(683

)

The following tables provide a reconciliation of the changes in the projected benefit obligation and fair value of assets for the defined benefit pension plans:

 

 

At or for the Year Ended September 30,

 

 

 

United States

 

 

Other Countries

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Changes in projected benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

 

$

127,222

 

 

$

132,444

 

 

$

67,263

 

 

$

65,477

 

 

$

194,485

 

 

$

197,921

 

Plan amendment

 

 

1,121

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,121

 

 

 

—

 

Service cost

 

 

775

 

 

 

893

 

 

 

1,244

 

 

 

1,333

 

 

 

2,019

 

 

 

2,226

 

Interest cost

 

 

7,598

 

 

 

7,297

 

 

 

3,213

 

 

 

3,137

 

 

 

10,811

 

 

 

10,434

 

Net actuarial losses (gains)

 

 

13,249

 

 

 

(4,946

)

 

 

4,128

 

 

 

(4,442

)

 

 

17,377

 

 

 

(9,388

)

Contribution by participants

 

 

—

 

 

 

—

 

 

 

12

 

 

 

11

 

 

 

12

 

 

 

11

 

Benefits paid

 

 

(9,010

)

 

 

(8,466

)

 

 

(3,647

)

 

 

(3,365

)

 

 

(12,657

)

 

 

(11,831

)

Foreign currency exchange rate changes

 

 

—

 

 

 

—

 

 

 

5,134

 

 

 

5,112

 

 

 

5,134

 

 

 

5,112

 

Projected benefit obligation at end of year

 

$

140,955

 

 

$

127,222

 

 

$

77,347

 

 

$

67,263

 

 

$

218,302

 

 

$

194,485

 

Changes in fair value of plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

155,370

 

 

$

154,481

 

 

$

50,775

 

 

$

47,579

 

 

$

206,145

 

 

$

202,060

 

Actual return on plan assets

 

 

33,382

 

 

 

9,355

 

 

 

3,866

 

 

 

573

 

 

 

37,248

 

 

 

9,928

 

Contributions by the Company

 

 

175

 

 

 

—

 

 

 

1,863

 

 

 

2,322

 

 

 

2,038

 

 

 

2,322

 

Contributions by plan participants

 

 

—

 

 

 

—

 

 

 

12

 

 

 

11

 

 

 

12

 

 

 

11

 

Benefits paid

 

 

(9,010

)

 

 

(8,466

)

 

 

(3,647

)

 

 

(3,365

)

 

 

(12,657

)

 

 

(11,831

)

Foreign currency exchange rate changes

 

 

—

 

 

 

—

 

 

 

4,607

 

 

 

3,655

 

 

 

4,607

 

 

 

3,655

 

Fair value of plan assets at end of year

 

$

179,917

 

 

$

155,370

 

 

$

57,476

 

 

$

50,775

 

 

$

237,393

 

 

$

206,145

 

Net over/(under) funded status at end of year

 

$

38,962

 

 

$

28,148

 

 

$

(19,871

)

 

$

(16,488

)

 

$

19,091

 

 

$

11,660

 

At September 30, 2024, the Company’s defined benefit pension plans in the United Kingdom, Japan, and Germany represented $34,220, $6,747, and $36,380 of the total projected benefit obligation, respectively. At September 30, 2024, the United Kingdom and Japan pension plan assets represented $48,098 and $9,378 of the total fair value of all plan assets, respectively. The German pension plans are unfunded and have no plan assets.

The largest contributor to the net actuarial losses affecting the funded status for the defined benefit pension plans in the United States, United Kingdom, Japan, and Germany is due to a decrease in the discount rates.

The accumulated benefit obligations of the Company’s defined benefit pension plans at September 30, 2024 was $140,955 in the United States, $33,766 in the United Kingdom, $5,958 in Japan, and $36,380 in Germany, and at September 30, 2023 was $127,222 in the United States, $30,067 in the United Kingdom, $5,790 in Japan, and $30,547 in Germany.

 

 

 

Plans with accumulated
benefit obligation in
excess of plan assets

 

 

Plans with accumulated
benefit obligation less
than plan assets

 

 

 

At September 30,

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Projected benefit obligation

 

$

(56,783

)

 

$

(49,726

)

 

$

(161,519

)

 

$

(144,759

)

Accumulated benefit obligation

 

 

(56,757

)

 

 

(49,711

)

 

 

(160,302

)

 

 

(143,914

)

Fair value of plan assets

 

 

20,053

 

 

 

18,047

 

 

 

217,340

 

 

 

188,098

 

The following tables provide the amounts recognized in the Consolidated Balance Sheets and accumulated other comprehensive (earnings) losses for the defined benefit pension plans:

 

 

Year Ended September 30,

 

 

 

United States

 

 

Other Countries

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Amounts recognized in the Consolidated Balance Sheets consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other non-current assets

 

$

39,148

 

 

$

29,172

 

 

$

16,673

 

 

$

14,167

 

 

$

55,821

 

 

$

43,339

 

Accrued liabilities

 

 

—

 

 

 

—

 

 

 

(1,166

)

 

 

(1,084

)

 

 

(1,166

)

 

 

(1,084

)

Other non-current liabilities

 

 

(186

)

 

 

(1,024

)

 

 

(35,378

)

 

 

(29,571

)

 

 

(35,564

)

 

 

(30,595

)

Net over/(under) funded status at end of year

 

$

38,962

 

 

$

28,148

 

 

$

(19,871

)

 

$

(16,488

)

 

$

19,091

 

 

$

11,660

 

Amounts recognized in accumulated other
comprehensive (earnings) losses consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrecognized net prior service cost

 

$

3,200

 

 

$

2,777

 

 

$

509

 

 

$

487

 

 

$

3,709

 

 

$

3,264

 

Unrecognized net losses (gains)

 

 

(2,749

)

 

 

8,527

 

 

 

(4,655

)

 

 

(7,847

)

 

 

(7,404

)

 

 

680

 

Total amounts recognized

 

 

451

 

 

 

11,304

 

 

 

(4,146

)

 

 

(7,360

)

 

 

(3,695

)

 

 

3,944

 

Deferred taxes

 

 

(3,499

)

 

 

(6,101

)

 

 

(191

)

 

 

808

 

 

 

(3,690

)

 

 

(5,293

)

Amounts recognized in accumulated other comprehensive (earnings) losses

 

$

(3,048

)

 

$

5,203

 

 

$

(4,337

)

 

$

(6,552

)

 

$

(7,385

)

 

$

(1,349

)

The following table reconciles the changes in accumulated other comprehensive (earnings) losses for the defined benefit pension plans:

 

 

Year Ended September 30,

 

 

 

United States

 

 

Other Countries

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Beginning of year

 

$

11,304

 

 

$

18,297

 

 

$

(7,360

)

 

$

(4,997

)

 

$

3,944

 

 

$

13,300

 

Net (gain) loss

 

 

(11,050

)

 

 

(6,003

)

 

 

2,668

 

 

 

(2,716

)

 

 

(8,382

)

 

 

(8,719

)

Prior service cost

 

 

1,121

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,121

 

 

 

—

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) gain

 

 

(226

)

 

 

(292

)

 

 

679

 

 

 

620

 

 

 

453

 

 

 

328

 

Prior service cost

 

 

(698

)

 

 

(698

)

 

 

(23

)

 

 

(22

)

 

 

(721

)

 

 

(720

)

Foreign currency exchange rate changes

 

 

—

 

 

 

—

 

 

 

(110

)

 

 

(245

)

 

 

(110

)

 

 

(245

)

End of year

 

$

451

 

 

$

11,304

 

 

$

(4,146

)

 

$

(7,360

)

 

$

(3,695

)

 

$

3,944

 

Pension benefit payments are made from the assets of the pension plans. The German pension plans are unfunded; therefore, benefit payments are made from Company contributions into these plans as required to meet the payment obligations. Using foreign exchange rates as of September 30, 2024 and expected future service assumptions, it is anticipated that the future benefit payments will be as follows:

Year Ending September 30,

 

United States

 

 

Other
Countries

 

 

Total

 

2025

 

$

9,637

 

 

$

3,553

 

 

$

13,190

 

2026

 

 

9,997

 

 

 

3,656

 

 

 

13,653

 

2027

 

 

10,253

 

 

 

3,768

 

 

 

14,021

 

2028

 

 

10,481

 

 

 

4,047

 

 

 

14,528

 

2029

 

 

10,655

 

 

 

4,097

 

 

 

14,752

 

2030-2034

 

 

53,308

 

 

 

24,350

 

 

 

77,658

 

 

Woodward expects its pension plan contributions in fiscal year 2025 will be $277 in the United Kingdom, $147 in Japan, and $1,185 in Germany. Woodward expects to have no pension plan contributions in fiscal year 2025 in the United States.

Pension plan assets

The overall investment objective of the pension plan assets is to earn a rate of return over time which, when combined with Company contributions, satisfies the benefit obligations of the pension plans and maintains sufficient liquidity to pay benefits.

As the timing and nature of the plan obligations varies for each Company sponsored pension plan, investment strategies have been individually designed for each pension plan with a common focus on maintaining diversified investment portfolios that provide for long-term growth while minimizing the risk to principal associated with short-term market behavior. The strategy for each of the plans balances the requirements to generate returns, using investments expected to produce higher returns, such as equity securities, with the need to control risk within the pension plans using less volatile investment assets, such as debt securities. A strategy of more equity-oriented allocation is adopted for those plans which have a longer-term investment plan based on the timing of the associated benefit obligations.

Risks associated with the plan assets include interest rate fluctuation risk, market fluctuation risk, risk of default by debt issuers, and liquidity risk. To manage these risks, the assets are managed by established, professional investment firms and performance is evaluated regularly by the Company’s investment committee against specific benchmarks and each plan’s investment objectives. Liability management and asset class diversification are central to the Company’s risk management approach and overall investment strategy.

The assets of the U.S. plans are invested in actively managed mutual funds. The assets of the plans in the United Kingdom and Japan are invested in actively managed pooled investment funds. Each individual mutual fund or pooled investment fund has been selected based on the investment strategy of the related plan, which mirrors a specific asset class within the associated target allocation. The plans in Germany are unfunded and have no plan assets. Pension plan assets at September 30, 2024 and 2023 do not include any direct investment in Woodward’s common stock.

The asset allocations are monitored and rebalanced regularly by investment managers assigned to the individual pension plans. The actual allocations of pension plan assets and target allocation ranges by asset class, are as follows:

 

 

At September 30,

 

 

2024

 

2023

 

 

Percentage of Plan
Assets

 

Target Allocation
Ranges

 

Percentage of Plan
Assets

 

Target Allocation
Ranges

United States:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Class

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities

 

30.5%

 

2.3%

 

 

—

 

 

51.1%

 

31.9%

 

2.3%

 

 

—

 

 

51.2%

Debt Securities

 

67.6%

 

58.9%

 

 

—

 

 

96.7%

 

66.6%

 

58.8%

 

 

—

 

 

96.5%

Other

 

1.9%

 

0.0%

 

1.5%

 

0.0%

 

 

100.0%

 

 

 

 

 

 

 

 

100.0%

 

 

 

 

 

 

 

United Kingdom:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Class

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities

 

0.0%

 

0.0%

 

20.7%

 

10.0%

 

 

—

 

 

30.0%

Debt Securities

 

95.8%

 

90.0%

 

 

—

 

 

100.0%

 

79.2%

 

70.0%

 

 

—

 

 

90.0%

Other

 

4.2%

 

0.0%

 

 

—

 

 

10.0%

 

0.1%

 

0.0%

 

 

100.0%

 

 

 

 

 

 

 

 

100.0%

 

 

 

 

 

 

 

Japan:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Class

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities

 

39.7%

 

36.0%

 

 

—

 

 

44.0%

 

40.0%

 

36.0%

 

 

—

 

 

44.0%

Debt Securities

 

59.4%

 

55.0%

 

 

—

 

 

63.0%

 

60.0%

 

55.0%

 

 

—

 

 

63.0%

Other

 

0.9%

 

0.0%

 

 

—

 

 

2.0%

 

0.0%

 

0.0%

 

 

—

 

 

2.0%

 

 

100.0%

 

 

 

 

 

 

 

 

100.0%

 

 

 

 

 

 

 

Actual allocations to each asset class can vary from target allocations due to periodic market value fluctuations, investment strategy changes, and the timing of benefit payments and contributions.

The following tables present Woodward’s pension plan assets using the fair value hierarchy established by U.S. GAAP:

 

 

At September 30, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

United
States

 

 

Other
Countries

 

 

United
States

 

 

Other
Countries

 

 

United
States

 

 

Other
Countries

 

 

Total

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,370

 

 

$

2,130

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,500

 

Mutual funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate bond fund

 

 

121,581

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

121,581

 

U.S. equity large cap fund

 

 

33,454

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,454

 

International equity large cap growth fund

 

 

21,512

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

21,512

 

Pooled funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japanese equity securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,939

 

 

 

—

 

 

 

—

 

 

 

1,939

 

International equity securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,786

 

 

 

—

 

 

 

—

 

 

 

1,786

 

Japanese fixed income securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,157

 

 

 

—

 

 

 

—

 

 

 

4,157

 

International fixed income securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,409

 

 

 

—

 

 

 

—

 

 

 

1,409

 

Index linked U.K. corporate bonds fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17,085

 

 

 

—

 

 

 

—

 

 

 

17,085

 

Index linked U.K. government securities fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,049

 

 

 

—

 

 

 

—

 

 

 

12,049

 

Index linked U.K. long-term government securities fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,924

 

 

 

—

 

 

 

—

 

 

 

14,924

 

Index U.K long-term government securities fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,997

 

 

 

—

 

 

 

—

 

 

 

1,997

 

Total assets

 

$

179,917

 

 

$

2,130

 

 

$

—

 

 

$

55,346

 

 

$

—

 

 

$

—

 

 

$

237,393

 

 

 

 

At September 30, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

United
States

 

 

Other
Countries

 

 

United
States

 

 

Other
Countries

 

 

United
States

 

 

Other
Countries

 

 

Total

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,385

 

 

$

149

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,534

 

Mutual funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate bond fund

 

 

103,401

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

103,401

 

U.S. equity large cap fund

 

 

31,136

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,136

 

International equity large cap growth fund

 

 

18,448

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,448

 

Pooled funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japanese equity securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,830

 

 

 

—

 

 

 

—

 

 

 

1,830

 

International equity securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,600

 

 

 

—

 

 

 

—

 

 

 

1,600

 

Japanese fixed income securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,785

 

 

 

—

 

 

 

—

 

 

 

3,785

 

International fixed income securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,287

 

 

 

—

 

 

 

—

 

 

 

1,287

 

Global target return equity/bond fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,719

 

 

 

—

 

 

 

—

 

 

 

8,719

 

Index linked U.K. corporate bonds fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,319

 

 

 

—

 

 

 

—

 

 

 

14,319

 

Index linked U.K. government securities fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,601

 

 

 

—

 

 

 

—

 

 

 

14,601

 

Index linked U.K. long-term government securities fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,485

 

 

 

—

 

 

 

—

 

 

 

4,485

 

Total assets

 

$

155,370

 

 

$

149

 

 

$

—

 

 

$

50,626

 

 

$

—

 

 

$

—

 

 

$

206,145

 

Cash and cash equivalents: Cash and cash equivalents held by the Company’s pension plans are held on deposit with creditworthy financial institutions. The fair value of the cash and cash equivalents are based on the quoted market price of the respective currency in which the cash is maintained.

Pension assets invested in mutual funds: The assets of the Company’s U.S. pension plans are invested in various mutual funds which invest in both equity and debt securities. The fair value of the mutual funds is determined based on the quoted market price of each fund.

Pension assets invested in pooled funds: The assets of the Company’s Japan and United Kingdom pension plans are invested in pooled investment funds, which include both equity and debt securities. The assets of the United Kingdom pension plan are invested in index-linked pooled funds which aim to replicate the movements of an underlying market index to which the fund is linked. Fair value of the pooled funds is based on the net asset value of shares held by the plan as reported by the fund sponsors. All pooled funds held by plans outside of the United States are considered to be invested in international equity and debt securities. Although the underlying securities may be largely domestic to the plan holding the investment assets, the underlying assets are considered international from the perspective of the Company.

There were no transfers into or out of Level 3 assets in fiscal years 2024 or 2023.

Other postretirement benefit plans

Woodward provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees and their covered dependents and beneficiaries in the United States. Benefits include the option to elect company provided medical insurance coverage to age 65 and a Medicare supplemental plan after age 65. Life insurance benefits are also provided to certain retirees in the United States under frozen plans which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for Woodward’s other postretirement benefit plans.

The postretirement medical benefit plans, other than the plan assumed in an acquisition in fiscal year 2009, were frozen in fiscal year 2006, and no additional employees may participate in the plans. Generally, employees who had attained age 55 and had rendered 10 or more years of service before the plans were frozen were eligible for these postretirement medical benefits.

Certain participating retirees are required to contribute to the plans in order to maintain coverage. The plans provide postretirement medical benefits for approximately 3 retired employees and their covered dependents and beneficiaries and may provide future benefits to 347 active employees and their covered dependents and beneficiaries, upon retirement, if the employees elect to participate. All the postretirement medical plans are fully insured for retirees who have attained age 65.

The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of postretirement benefits were as follows:

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Weighted-average discount rate used to determine benefit obligation

 

 

5.00

%

 

 

6.25

%

 

 

5.70

%

Weighted-average discount rate used to determine net periodic benefit cost

 

 

6.25

 

 

 

5.70

 

 

 

2.80

 

The discount rate assumption is intended to reflect the rate at which the postretirement benefits could be effectively settled based upon the assumed timing of the benefit payments.

Woodward used a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding to determine the benefit obligations at year end.

Mortality assumptions are based on published mortality studies developed primarily based on past experience of the broad population and modified for projected longevity trends. The projected benefit obligations in the United States as of September 30, 2024 and September 30, 2023 were based on the SOA Pri-2012 Mortality Tables Report using the SOA’s MP-2019 and projected forward using a custom projection scale based on MP-2019 with a 5-year convergence period and a long-term rate of 0.75%.

Assumed healthcare cost trend rates at September 30, were as follows:

 

 

2024

 

 

2023

 

Health care cost trend rate assumed for next year

 

 

6.00

%

 

 

6.00

%

Rate to which the cost trend rate is assumed to decline

 

 

 

 

 

 

(the ultimate trend rate)

 

 

5.00

%

 

 

5.00

%

Year that the rate reaches the ultimate trend rate

 

2030

 

 

2030

 

 

Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statements of Earnings:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Service cost

 

$

—

 

 

$

1

 

 

$

1

 

Interest cost

 

 

902

 

 

 

904

 

 

 

577

 

Amortization of:

 

 

 

 

 

 

 

 

 

Net gain

 

 

(555

)

 

 

(495

)

 

 

(94

)

Net periodic cost

 

$

347

 

 

$

410

 

 

$

484

 

The following table provides a reconciliation of the changes in the accumulated postretirement benefit obligation and fair value of assets for the postretirement benefits:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

Changes in accumulated postretirement benefit obligation:

 

 

 

 

 

 

Accumulated postretirement benefit obligation at beginning of year

 

$

15,336

 

 

$

16,797

 

Service cost

 

 

—

 

 

 

1

 

Interest cost

 

 

902

 

 

 

904

 

Premiums paid by plan participants

 

 

834

 

 

 

873

 

Net actuarial loss (gain)

 

 

597

 

 

 

(682

)

Benefits paid

 

 

(2,466

)

 

 

(2,557

)

Accumulated postretirement benefit obligation at end of year

 

$

15,203

 

 

$

15,336

 

Changes in fair value of plan assets:

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

—

 

 

$

—

 

Contributions by the company

 

 

1,632

 

 

 

1,684

 

Premiums paid by plan participants

 

 

834

 

 

 

873

 

Benefits paid

 

 

(2,466

)

 

 

(2,557

)

Fair value of plan assets at end of year

 

$

—

 

 

$

—

 

Funded status at end of year

 

$

(15,203

)

 

$

(15,336

)

The following tables provide the amounts recognized in the Consolidated Balance Sheets and accumulated other comprehensive (earnings) losses for the postretirement plans:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

Amounts recognized in Consolidated Balance Sheets consist of:

 

 

 

 

 

 

Accrued liabilities

 

$

(1,668

)

 

$

(1,739

)

Other non-current liabilities

 

 

(13,535

)

 

 

(13,597

)

Funded status at end of year

 

$

(15,203

)

 

$

(15,336

)

Amounts recognized in accumulated other comprehensive income consist of:

 

 

 

 

 

 

Unrecognized net prior service cost (benefit)

 

$

—

 

 

$

—

 

Unrecognized net gains

 

 

(5,260

)

 

 

(6,412

)

Total amounts recognized

 

 

(5,260

)

 

 

(6,412

)

Deferred taxes

 

 

1,009

 

 

 

1,292

 

Amounts recognized in accumulated other comprehensive (earnings)

 

$

(4,251

)

 

$

(5,120

)

Woodward pays plan benefits from its general funds; therefore, there are no segregated plan assets as of September 30, 2024 or September 30, 2023.

The accumulated benefit obligations of the Company’s postretirement plans were $15,203 at September 30, 2024 and $15,336 at September 30, 2023. The largest contributor to the actuarial loss affecting the Company’s postretirement plans accumulated benefit obligations was a decrease in the discount rate.

The following table reconciles the changes in accumulated other comprehensive (earnings) losses for the other postretirement benefit plans:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

Beginning of year

 

$

(6,412

)

 

$

(6,225

)

Net loss (gain)

 

 

597

 

 

 

(682

)

Amortization of:

 

 

 

 

 

 

Net gain

 

 

555

 

 

 

495

 

End of year

 

$

(5,260

)

 

$

(6,412

)

Using expected future service, it is anticipated that the future Company contributions to pay benefits for other postretirement benefit plans, excluding participate contributions, will be as follows:

Year Ending September 30,

 

 

 

2025

 

$

2,519

 

2026

 

 

2,447

 

2027

 

 

2,357

 

2028

 

 

2,267

 

2029

 

 

2,171

 

2030-2034

 

 

9,101

 
v3.24.3
Stockholders' Equity
 12 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Stockholders' Equity

Note 21. Stockholders’ equity

Common stock and treasury stock

Activity in common stock and treasury stock shares are as follows:

 

 

Common Stock

 

 

Treasury Stock

 

 

Treasury stock held for deferred compensation

 

Balances as of September 30, 2021

 

 

72,960

 

 

 

(9,702

)

 

 

(167

)

Purchase of treasury stock

 

 

—

 

 

 

(4,123

)

 

 

—

 

Sales of treasury stock

 

 

—

 

 

 

468

 

 

 

—

 

Common shares issued for benefit plans

 

 

—

 

 

 

150

 

 

 

—

 

Purchases of stock by deferred compensation

 

 

—

 

 

 

—

 

 

 

(3

)

Distribution of stock from deferred compensation

 

 

—

 

 

 

—

 

 

 

31

 

Balances as of September 30, 2022

 

 

72,960

 

 

 

(13,207

)

 

 

(139

)

 

 

 

 

 

 

 

 

 

Balances as of September 30, 2022

 

 

72,960

 

 

 

(13,207

)

 

 

(139

)

Purchase of treasury stock

 

 

—

 

 

 

(1,060

)

 

 

—

 

Sales of treasury stock

 

 

—

 

 

 

1,009

 

 

 

—

 

Common shares issued for benefit plans

 

 

—

 

 

 

188

 

 

 

—

 

Purchases of stock by deferred compensation

 

 

—

 

 

 

—

 

 

 

(2

)

Distribution of stock from deferred compensation

 

 

—

 

 

 

—

 

 

 

86

 

Balances as of September 30, 2023

 

 

72,960

 

 

 

(13,070

)

 

 

(55

)

 

 

 

 

 

 

 

 

 

Balances as of September 30, 2023

 

 

72,960

 

 

 

(13,070

)

 

 

(55

)

Purchase of treasury stock

 

 

—

 

 

 

(2,236

)

 

 

—

 

Sales of treasury stock

 

 

—

 

 

 

1,360

 

 

 

—

 

Common shares issued for benefit plans

 

 

—

 

 

 

159

 

 

 

—

 

Purchases of stock by deferred compensation

 

 

—

 

 

 

—

 

 

 

(1

)

Distribution of stock from deferred compensation

 

 

—

 

 

 

—

 

 

 

11

 

Balances as of September 30, 2024

 

 

72,960

 

 

 

(13,787

)

 

 

(45

)

Stock repurchase program

In November 2019, the Board had authorized a program for the repurchase of up to $500,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year period that was scheduled to expire in November 2022 (the “2019 Authorization”). During fiscal year 2022, we repurchased 233 shares of our common stock for $26,742 under the 2019 Authorization.

In January 2022, the Board terminated the 2019 Authorization and concurrently authorized a program for the repurchase of up to $800,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a two-year period ending in January 2024 (the “2022 Authorization”). During fiscal year 2023, we repurchased 1,060 shares of our common stock for $126,380 under the 2022 Authorization, as compared to 3,890 shares of our common stock for $446,042 under the 2022 Authorization during fiscal year 2022.

In January 2024, the Board terminated the 2022 Authorization, which was nearing expiration, and concurrently authorized a new program for the repurchase of up to $600,000 of Woodward's outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year period ending in January 2027 (the "2024 Authorization"). During fiscal year 2024, we repurchased 2,236 shares of our common stock for $390,819 under the 2024 Authorization.

Stock-based compensation

Provisions governing non-qualified stock option awards, restricted stock units ("RSUs"), and performance restricted stock units ("PSUs") are included in the 2017 Omnibus Incentive Plan, as amended from time to time (the “2017 Plan”) and with respect to outstanding stock options awarded in or prior to fiscal year 2016, the 2006 Omnibus Incentive Plan (the “2006 Plan”).

The 2017 Plan was approved by Woodward’s stockholders in January 2017 and is a successor plan to the 2006 Plan. As of September 14, 2016, the effective date of the 2017 Plan, the Board delegated authority to administer the 2017 Plan to the Human Capital & Compensation Committee of the Board, including, but not limited to, the power to determine the recipients of awards and the terms of those awards.

Stock options

Stock option awards are granted with an exercise price equal to the market price of Woodward's stock at the date the grants are awarded, a ten-year term, and generally have a four-year vesting schedule at a rate of 25% per year.

The fair value of options granted is estimated as of the grant date using the Black-Scholes-Merton option-valuation model using the assumptions in the following table. Woodward calculates the expected term, which represents the average period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant.

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Weighted-average exercise price per share

 

$

137.36

 

 

$

84.84

 

 

$

115.3

 

Expected term (years)

 

 

 

6.6

 

-

 

8.7

 

 

 

 

6.6

 

-

 

8.8

 

 

 

 

6.6

 

-

 

8.7

 

Estimated volatility

 

 

 

35.0

%

-

 

37.6

%

 

 

 

34.7

%

-

 

37.6

%

 

 

 

33.8

%

-

 

36.4

%

Estimated dividend yield

 

 

 

0.7

%

-

 

0.7

%

 

 

 

0.7

%

-

 

0.9

%

 

 

 

0.6

%

-

 

0.8

%

Risk-free interest rate

 

 

 

4.2

%

-

 

4.4

%

 

 

 

3.4

%

-

 

4.4

%

 

 

 

1.1

%

-

 

3.5

%

The weighted average grant date fair value of options granted follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Weighted-average grant date fair value of options

 

$

58.34

 

 

$

34.19

 

 

$

41.78

 

The following is a summary of the activity for stock option awards during the fiscal year ended September 30, 2024:

 

 

Number of options

 

 

Weighted-
Average Exercise
Price Per Share

 

Balance at September 30, 2023

 

 

4,842

 

 

$

80.48

 

Granted

 

 

87

 

 

 

137.36

 

Exercised

 

 

(1,340

)

 

 

69.23

 

Forfeited

 

 

(11

)

 

 

96.82

 

Balance at September 30, 2024

 

 

3,578

 

 

$

86.03

 

 

Changes in non-vested stock options during the fiscal year ended September 30, 2024 were as follows:

 

 

Number of options

 

 

Weighted-
Average Grant
Date Fair Value
Per Share

 

Balance at September 30, 2023

 

 

1,393

 

 

$

33.96

 

Granted

 

 

87

 

 

 

58.34

 

Vested

 

 

(572

)

 

 

32.36

 

Forfeited

 

 

(10

)

 

 

37.76

 

Balance at September 30, 2024

 

 

898

 

 

$

37.30

 

Information about stock options that have vested, or are expected to vest, and are exercisable at September 30, 2024 was as follows:

 

 

Number of options

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Life in Years

 

 

Aggregate
Intrinsic
Value

 

Options outstanding

 

 

3,578

 

 

$

86.03

 

 

 

5.3

 

 

$

305,872

 

Options vested and exercisable

 

 

2,680

 

 

 

82.14

 

 

 

4.5

 

 

 

239,541

 

Options vested and expected to vest

 

 

3,557

 

 

 

85.91

 

 

 

5.2

 

 

 

304,515

 

Other information follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Total fair value of stock options vested

 

$

18,527

 

 

$

24,388

 

 

$

18,945

 

Total intrinsic value of options exercised

 

 

115,198

 

 

 

67,203

 

 

 

32,709

 

Cash received from exercises of stock options

 

 

89,875

 

 

 

50,749

 

 

 

21,897

 

Excess tax benefit realized from exercise of stock options

 

 

17,939

 

 

 

12,595

 

 

 

6,472

 

Restricted stock units

The Company generally grants RSUs to eligible employees under its form RSU agreement for employees (the “Standard Form RSU Agreement”). RSUs granted under the Standard Form RSU Agreement prior to November 14, 2023, generally have a four-year vesting schedule at a rate of 25% per year, and RSUs granted after November 14, 2023 have a three-year vesting schedule at a rate of 33.3% per year, in each case generally subject to continued employment. The fair value of RSUs granted are estimated using the closing price of the Company’s stock on the grant date.

The Company has also granted RSUs to certain employees under its form attraction and retention RSU agreement (the “Form Attraction and Retention RSU Agreement”), which has from time to time been used for new hires and specific retention purposes. RSUs granted under the Form Attraction and Retention RSU Agreement are generally scheduled to fully vest on the third or fourth anniversary of the respective grant dates, and in each case, subject to continued employment.

A summary of the activity for RSUs:

 

 

Number of units

 

 

Weighted-Average Grant Date Fair Value

 

Balance at September 30, 2023

 

 

177

 

 

$

93.46

 

Granted

 

 

178

 

 

 

139.04

 

Vested

 

 

(30

)

 

 

88.97

 

Forfeited

 

 

(7

)

 

 

149.02

 

Balance at September 30, 2024

 

 

318

 

 

$

118.19

 

Performance restricted stock units

In November 2023, the Company granted PSUs to certain eligible employees under the form PSU agreement that generally will vest subject to a market condition and a service condition through the performance period. The market condition associated with the awards is based on the Company's relative total shareholder return ("TSR") compared to the TSR generated by the other companies that comprise the S&P 400 Midcap Index over a three-year performance period. Performance at target will result in vesting and issuance of the number of PSUs granted, equal to 100% payout.

Performance below or above target can result in an issuance of between 0% - 150% of the target number of PSUs granted. Expense is recognized based on the weighted average grant date fair value on a straight line basis over the service period, irrespective as to whether the market condition is achieved.

The fair value of the PSUs for the November 2023 grant was determined based upon a Monte Carlo valuation method. The assumptions used in the Monte Carlo method to value the PSUs granted, which includes the grant date fair value outcome from the Monte Carlo method, were as follows:

 

 

September 30, 2024

 

Expected volatility

 

 

30.2

%

Risk free interest rate

 

 

4.5

%

Expected life

 

3 years

 

Grant date fair value

 

$

146.47

 

The PSUs granted receive dividend equivalent units; therefore, no discount was applied for Woodward’s dividends.

A summary of the activity for PSUs:

 

 

Number of units

 

 

Weighted-Average Grant Date Fair Value

 

Beginning balance

 

 

—

 

 

$

—

 

Granted

 

 

66

 

 

 

146.47

 

Forfeited

 

 

(4

)

 

 

146.47

 

Ending balance

 

 

62

 

 

$

146.47

 

Stock-based compensation expense

Woodward recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Pursuant to the form agreements used by the Company, with terms approved by the administrator of the applicable plan, the requisite service period can be less than the four-year vesting period based on grantee’s retirement eligibility. As such, the recognition of stock-based compensation expense associated with some grants can be accelerated to a period of less than four years, including immediate recognition of stock-based compensation expense on the date of grant.

Stock-based compensation expense recognized was as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Employee stock-based compensation expense

 

$

33,052

 

 

$

23,958

 

 

$

20,109

 

In connection with an executive separation and release agreement entered into by the Company, Woodward recognized an additional $1,682 and $1,265 of stock-based compensation expense, before tax, during fiscal year 2024 and fiscal year 2023, respectively.

At September 30, 2024, there was approximately $26,694 of total unrecognized compensation expense related to non-vested stock-based compensation arrangements, including stock options, restricted stock, and performance stock awards. The pre-vesting forfeiture rates for purposes of determining stock-based compensation expense recognized were estimated to be 0.0% for members of Woodward’s Board and 7.4% for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 1.79 years.
v3.24.3
Commitments and Contingencies
 12 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 22. Commitments and contingencies

Woodward enters into unconditional purchase obligation arrangements (i.e., issuance of purchase orders, obligations to transfer funds in the future for fixed or minimum quantities of goods or services at fixed or minimum prices, such as

"take-or-pay" contracts) in the normal course of business to ensure that adequate levels of sourced product are available to Woodward. Future minimum unconditional purchase obligations are as follows:

Year Ending September 30:

 

 

 

2025

 

$

676,009

 

2026

 

 

179,213

 

2027

 

 

70,212

 

2028

 

 

1,542

 

2029

 

 

5

 

Thereafter

 

 

88

 

Total

 

$

927,069

 

The U.S. Government, and other governments, may terminate any of Woodward’s government contracts (and, in general, subcontracts) at their convenience, as well as for default based on specified performance measurements. If any of Woodward’s government contracts were to be terminated for convenience, the Company generally would be entitled to receive payment for work completed and allowable termination or cancellation costs. If any of Woodward’s government contracts were to be terminated for Woodward’s default, the U.S. Government generally would pay only for the work accepted and could require Woodward to pay the difference between the original contract price and the cost to re-procure the contract items, net of the work accepted from the original contract. The U.S. Government could also hold Woodward liable for damages resulting from the default.

Woodward is currently involved in claims, pending or threatened litigation or other legal proceedings, investigations, and/or regulatory proceedings arising in the normal course of business, including, among others, those relating to product liability claims, employment matters, worker’s compensation claims, contractual disputes, product warranty claims, and alleged violations of various laws and regulations. Woodward accrues for known individual matters using estimates of the most likely amount of loss where it believes that it is probable the matter will result in a loss when ultimately resolved and such loss is reasonably estimable. Legal costs are expensed as incurred and are classified in “Selling, general, and administrative expenses” on the Consolidated Statements of Earnings.

Woodward is partially self-insured in the United States for healthcare and worker’s compensation up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of related claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities.

While the outcome of pending claims, legal and regulatory proceedings, and investigations cannot be predicted with certainty, management believes that any liabilities that may result from these claims, proceedings, and investigations will not have a material effect on Woodward’s liquidity, financial condition, or results of operations.

In the event of a change in control of Woodward, as defined in change-in-control agreements with its current corporate officers, Woodward may be required to pay termination benefits to any such officer if such officer’s employment is terminated within two years following the change of control.
v3.24.3
Segment Information
 12 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information

Note 23. 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.

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,

 

 

 

2024

 

 

2023

 

 

2022

 

Segment external net sales:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

2,028,618

 

 

$

1,768,103

 

 

$

1,519,322

 

Industrial

 

 

1,295,631

 

 

 

1,146,463

 

 

 

863,468

 

Total consolidated net sales

 

$

3,324,249

 

 

$

2,914,566

 

 

$

2,382,790

 

Segment earnings:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

385,360

 

 

$

290,104

 

 

$

230,933

 

Industrial

 

 

229,857

 

 

 

161,622

 

 

 

82,788

 

Nonsegment expenses

 

 

(119,745

)

 

 

(130,811

)

 

 

(81,092

)

Interest Expense, net

 

 

(41,501

)

 

 

(45,147

)

 

 

(32,731

)

Consolidated earnings before income taxes

 

$

453,971

 

 

$

275,768

 

 

$

199,898

 

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,

 

 

 

2024

 

 

2023

 

 

2022

 

Segment assets:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

1,936,507

 

 

$

1,829,410

 

 

$

1,773,854

 

Industrial

 

 

1,509,495

 

 

 

1,490,341

 

 

 

1,380,446

 

Unallocated corporate property, plant and equipment, net

 

 

120,946

 

 

 

104,962

 

 

 

111,760

 

Other unallocated assets

 

 

801,967

 

 

 

585,490

 

 

 

540,386

 

Consolidated total assets

 

$

4,368,915

 

 

$

4,010,203

 

 

$

3,806,446

 

 

 

 

 

 

 

 

 

 

Segment depreciation and amortization:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

55,305

 

 

$

59,880

 

 

$

60,176

 

Industrial

 

 

49,779

 

 

 

51,167

 

 

 

50,584

 

Unallocated corporate amounts

 

 

11,086

 

 

 

8,696

 

 

 

9,868

 

Consolidated depreciation and amortization

 

$

116,170

 

 

$

119,743

 

 

$

120,628

 

 

 

 

 

 

 

 

 

 

Segment capital expenditures:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

55,989

 

 

$

56,913

 

 

$

23,253

 

Industrial

 

 

41,930

 

 

 

21,855

 

 

 

12,399

 

Unallocated corporate amounts

 

 

(1,639

)

 

 

(2,268

)

 

 

17,216

 

Consolidated capital expenditures

 

$

96,280

 

 

$

76,500

 

 

$

52,868

 

We had no customers who accounted for approximately 10% or more of our consolidated net sales for the fiscal year ended September 30, 2024. RTX Corporation was our largest customer during the fiscal year ended September 30, 2024. All sales were made by Woodward’s Aerospace segment and totaled approximately 9% of net sales in fiscal year 2024, 10% of net sales in fiscal year 2023, and 11% of net sales in fiscal year 2022.

Accounts receivable from RTX Corporation totaled approximately 6% of accounts receivable at September 30, 2024 and 4% of accounts receivable at September 30, 2023.

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, 2024

 

 

 

 

 

 

 

 

 

Aerospace

 

$

107,978

 

 

$

443,370

 

 

$

551,348

 

Industrial

 

 

9,039

 

 

 

10,273

 

 

 

19,312

 

Total net external sales

 

$

117,017

 

 

$

453,643

 

 

$

570,660

 

Percentage of total net sales

 

 

3

%

 

 

14

%

 

 

17

%

 

 

 

 

 

 

 

 

 

Fiscal year ended September 30, 2023

 

 

 

 

 

 

 

 

 

Aerospace

 

$

99,848

 

 

$

363,835

 

 

$

463,683

 

Industrial

 

 

7,524

 

 

 

14,840

 

 

 

22,364

 

Total net external sales

 

$

107,372

 

 

$

378,675

 

 

$

486,047

 

Percentage of total net sales

 

 

4

%

 

 

13

%

 

 

17

%

 

 

 

 

 

 

 

 

 

Fiscal year ended September 30, 2022

 

 

 

 

 

 

 

 

 

Aerospace

 

$

93,266

 

 

$

433,646

 

 

$

526,912

 

Industrial

 

 

4,759

 

 

 

6,052

 

 

 

10,811

 

Total net external sales

 

$

98,025

 

 

$

439,698

 

 

$

537,723

 

Percentage of total net sales

 

 

4

%

 

 

19

%

 

 

23

%
v3.24.3
Subsequent Events
 12 Months Ended
Sep. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events

Note 24. Subsequent events

On November 15, 2024, Woodward entered into an agreement to sell the Industrial heavy duty gas turbine combustion parts product line located in Greenville, South Carolina to GE Vernova, subject to customary purchase price adjustments. The agreement for the sale of the product line is expected to result in a gain and close later in fiscal year 2025.
v3.24.3
Operations and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Basis of presentation

Basis of presentation

The Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Woodward, Inc. and its subsidiaries (collectively “Woodward” or “the Company”).

Nature of operations

Nature of operations

Woodward is an independent designer, manufacturer, and service provider of energy control and optimization solutions. Woodward designs, produces, and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in challenging environments. Woodward has significant production and assembly facilities primarily in the United States, Europe, and Asia, and promotes its products and services through its worldwide locations.

Woodward’s strategic focus is providing energy control and optimization solutions for the aerospace and industrial markets. The precise and efficient control of energy, including motion, fluid, combustion, and electrical energy, is a growing requirement in the markets Woodward serves. Woodward’s customers look to it to optimize the efficiency, emissions, and operation of power equipment in both commercial and defense operations. Woodward’s core technologies leverage well across its markets and customer applications, enabling it to develop and integrate cost-effective and state-of-the-art fuel, combustion, fluid, actuation, and electronic systems. Woodward focuses its solutions and services primarily on serving original equipment manufacturers (“OEMs”) and equipment packagers, partnering with them to bring superior component and system solutions to their demanding applications. Woodward also provides aftermarket repair, maintenance, replacement, and other service support for its installed products.

Woodward’s components and integrated systems optimize performance of commercial aircraft, defense aircraft, military ground vehicles and other equipment, gas and steam turbines, industrial diesel, gas, biodiesel and dual-fuel reciprocating engines, and electrical power systems. Woodward’s innovative motion, fluid, combustion, and electrical energy control systems help its customers offer more cost-effective, cleaner, and more reliable equipment.
Principles of consolidation

Principles of consolidation: These Consolidated Financial Statements are prepared in accordance with U.S. GAAP and include the accounts of Woodward and its wholly and majority-owned subsidiaries. Transactions within and between these companies are eliminated.
Use of estimates

Use of estimates: The preparation of the Consolidated Financial Statements requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, at the date of the financial statements and the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures. Significant estimates include allowances for uncollectible amounts, net realizable value of inventories, customer rebates earned, useful lives of property and identifiable intangible assets, the evaluation of impairments of property, identifiable intangible assets and goodwill, the provision for income tax and related valuation reserves, the valuation of assets and liabilities acquired in business combinations, assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans, the valuation of stock compensation instruments granted to employees, and contingencies. Actual results could differ from those estimates.
Foreign currency exchange rates

Foreign currency exchange rates: The assets and liabilities of substantially all subsidiaries outside the United States are translated at fiscal year-end rates of exchange, and earnings and cash flow statements are translated at weighted-average rates of exchange. The exchange rate in effect at the time of the cash flow is used for significant or infrequent cash flows, such as payments for a business acquisition, for which the use of weighted-average rates of exchange would result in a substantially different cash flow. Translation adjustments are accumulated with other comprehensive (losses) earnings as a separate component of stockholders’ equity and are presented net of tax effects in the Consolidated Statements of Stockholders’ Equity. The effects of changes in foreign currency exchange rates on loans between consolidated subsidiaries that are considered permanent in nature are also accumulated with other comprehensive earnings, net of tax.

The Company is exposed to market risks related to fluctuations in foreign currency exchange rates because some sales transactions, and certain assets and liabilities of its domestic and foreign subsidiaries, are denominated in foreign currencies. Selling, general, and administrative expenses include a net foreign currency loss of $8,369 in fiscal year 2024, a net foreign currency loss of $1,020 in fiscal year 2023, and a net foreign currency gain of $1,450 in fiscal year 2022.
Revenue recognition

Revenue recognition: Revenue is recognized on contracts with customers for arrangements in which quantities and pricing are fixed and/or determinable and are generally based on customer purchase orders, often within the framework of a long-term supply arrangement with the customer. Woodward has determined that it is the principal in its sales transactions, as Woodward is primarily responsible for fulfilling the promised performance obligations, has discretion to establish the selling price, and generally assumes the inventory risk. Woodward recognizes revenue for performance obligations within a customer contract when control of the associated product or service is transferred to the customer. Some of Woodward’s contracts with customers contain a single performance obligation, while other contracts contain multiple performance obligations. Each product within a contract generally represents a separate performance obligation as Woodward does not provide significant installation and integration services, the products do not customize each other, and the products can function independently of each other.

A contract's transaction price is allocated to each performance obligation and recognized as revenue when, or as, the customer obtains control of the associated product or service. When there are multiple performance obligations within a contract, Woodward generally uses the observable standalone sales price for each distinct product or service within the contract to allocate the transaction price to the distinct products or services. In instances when a standalone sales price for each product or service is not observable within the contract, Woodward allocates the transaction price to each performance obligation using an estimate of the standalone selling price for each product or service, which is generally based on incurred costs plus a reasonable margin, for each distinct product or service in the contract.

When determining the transaction price of each contract, Woodward considers contractual consideration payable by the customer and variable consideration that may affect the total transaction price. Variable consideration, consisting of early payment discounts, rebates, and other sources of price variability, are included in the estimated transaction price based on both customer-specific information as well as historical experience.

Customers sometimes trade in used products in exchange for new or refurbished products. In addition, Woodward’s customers sometimes provide inventory to Woodward which will be integrated into final products sold to those customers. Woodward obtains control of these exchanged products and customer provided inventory, and therefore, both are forms of noncash consideration. Noncash consideration paid by customers on overall sales transactions is additive to the transaction price. Woodward’s net sales and cost of goods sold include the value of such noncash consideration for the same amount, with no resulting impact to earnings before income taxes. Upon receipt of such inventory, Woodward recognizes an inventory asset and a contract liability.
Point in time and over time revenue recognition

Point in time and over time revenue recognition: Control of the products generally transfers to the customer at a point in time, if the customer does not control the products as they are produced. Performance obligations are satisfied and revenue is recognized over time if: (i) the customer receives the benefits as Woodward performs work, if the customer controls the asset as it is being enhanced, or if the product being produced for the customer has no alternative use to Woodward; and (ii) Woodward has an enforceable right to payment with a profit. For products being produced for the customer that have no alternative use to Woodward and Woodward has an enforceable right to payment with a profit, and where the products are substantially the same and have the same pattern of transfer to the customer, revenue is recognized as a series of distinct products. As Woodward satisfies MRO performance obligations, revenue is recognized over time, as the customer, rather than Woodward, controls the asset being enhanced. When services are provided, revenue from those services is recognized over time because control is transferred continuously to customers as Woodward performs the work.

For services that are not short-term in nature, MRO, and sales of products that have no alternative use to Woodward and an enforceable right to payment with a profit, Woodward uses an actual cost input measure to determine the extent of progress towards completion of the performance obligation. For these revenue streams, revenue is recognized over time as work is performed based on the relationship between actual costs incurred to-date for each contract and the total estimated costs for such contract at completion of the performance obligation (the cost-to-cost method). Woodward has concluded that this measure of progress best depicts the transfer of assets to the customer because incurred costs are integral to Woodward’s completion of the performance obligation under the specific customer contract and correlate directly to the transfer of control to the customer. Contract costs include labor, material, and overhead. Contract cost estimates are based on various assumptions to project the outcome of future events. These assumptions include labor

productivity, and availability; the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred.

If at any time the estimate of contract profitability indicates an anticipated loss on the contract, Woodward recognizes provisions for estimated losses on uncompleted contracts in the period in which such losses are determined. In situations where the creditworthiness of a customer becomes in doubt, Woodward ceases to recognize the over-time revenue on the associated customer contract.

Occasionally, Woodward sells maintenance or service arrangements, extended warranties, or other stand ready services. Woodward recognizes revenue from such arrangements as a series of performance obligations over the time period in which the services are available to the customer.
Material rights and costs to fulfill a contract

Material rights and costs to fulfill a contract: Customers sometimes pay consideration to Woodward for product engineering and development activities that do not result in the immediate transfer of distinct products or services to the customer. There is an implicit assumption that without the customer making such advance payments to Woodward, Woodward’s future sales of products or services to the customer would be at a higher selling price; therefore, such payments create a “material right” to the customer that effectively gives the customer an option to acquire future products or services, at a discount, that are dependent upon the product engineering and development. Material rights are recorded as contract liabilities and will be recognized when control of the related products or services are transferred to the customer.

Woodward capitalizes costs of product engineering and development identified as material rights up to the amount of customer funding as costs to fulfill a contract are incurred because the costs incurred up to the amount of the customer funding commitment are recoverable. Due to the uncertainty of the product success and/or demand, fulfillment costs in excess of the customer funding are expensed as incurred. Woodward recognizes the deferred material rights as revenue based on a percentage of actual sales to total estimated lifetime sales of the related developed products as the customers exercise their option to acquire additional products or services at a discount. Woodward amortizes the capitalized costs to fulfill a contract as cost of goods sold proportionally to the recognition of the associated deferred material rights. Estimated total lifetime sales are reviewed at least annually and more frequently when circumstances warrant a modification to the previous estimate.

Woodward does not capitalize incremental costs of obtaining a contract, as Woodward does not pay sales commissions or incur other incremental costs related to contracts with Woodward’s customers for arrangements in which quantities and pricing are fixed and/or determinable.
Contract Liabilities

Contract liabilities: Advance payments and billings in excess of revenue recognized represent contract liabilities and are recorded as deferred revenues when customers remit contractual cash payments in advance of Woodward satisfying performance obligations under contractual arrangements, including those with performance obligations satisfied over time. Woodward generally receives advance payments from customers related to maintenance or service arrangements, extended warranties, or other stand ready services, which it recognizes over the performance period. Contract liabilities are satisfied when revenue is recognized and the performance obligation is satisfied. Advance payments and billings in excess of revenue recognized are included in deferred revenue, which is classified as current or noncurrent based on the timing of when Woodward expects to recognize revenue.
Customer Payments

Customer payments: Woodward occasionally agrees to make payments to certain customers in order to participate in anticipated sales activity. Payments made to customers are accounted for as a reduction of revenue unless they are made in exchange for identifiable goods or services with fair values that can be reasonably estimated. Reductions in revenue associated with these customer payments are recognized immediately to the extent that the payments cannot be attributed to anticipated future sales, and are recognized in future periods to the extent that the payments relate to anticipated future sales. Such determinations are based on the facts and circumstances underlying each payment.
Purchase Accounting

Purchase accounting: Business combinations are accounted for using the purchase method of accounting. Under this method, assets and liabilities, including intangible assets, are recorded at their fair values as of the acquisition date. Acquisition costs in excess of amounts assigned to assets acquired and liabilities assumed are recorded as goodwill. Transaction-related costs associated with business combinations are expensed as incurred.
Stock-based compensation

Stock-based compensation: Compensation cost relating to stock-based payment awards made to employees and directors is recognized in the financial statements using a fair value method. Non-qualified stock option awards, restricted

stock units, and performance restricted stock units are issued under Woodward’s stock-based compensation plans. The cost of such awards, measured at the grant date, is based on the estimated fair value of the award.

Forfeitures are estimated at the time of each grant in order to estimate the portion of the award that will ultimately vest. The estimate is based on Woodward’s historical rates of forfeitures and is updated periodically. The portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods, which is generally the vesting period of the awards.
Research and development costs

Research and development costs: Company funded expenditures related to new product development and significant product enhancement and/or upgrade activities are expensed as incurred and are separately reported in the Consolidated Statements of Earnings.

Income taxes

Income taxes: Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of Woodward’s assets, liabilities, and certain unrecognized gains and losses recorded in accumulated other comprehensive (losses) earnings. Woodward provides for taxes that may be payable if undistributed earnings of overseas subsidiaries were to be remitted to the United States, except for those earnings that it considers to be indefinitely invested.
Cash equivalents

Cash equivalents: Highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents.
Accounts receivable

Accounts receivable: Almost all of Woodward’s sales are made on credit and result in accounts receivable, which are recorded at the amount invoiced and are generally not collateralized. In the normal course of business, not all accounts receivable are collected and, therefore, an allowance for uncollectible amounts is provided equal to the amount that Woodward believes ultimately will not be collected, either from credit risk or other adjustments to the original selling price or anticipated cash discounts. In establishing the amount of the allowance related to the credit risk of accounts receivable, customer-specific information is considered related to delinquent accounts, past loss experience, bankruptcy filings, deterioration in the customer’s operating results or financial position, current and forecasted economic conditions, and other relevant factors. Bad debt losses are deducted from the allowance, and the related accounts receivable balances are written off when the receivables are deemed uncollectible. Recoveries of accounts receivable previously written off are recognized when received. The allowance associated with anticipated other adjustments to the selling price or cash discounts is also established and is included in the allowance for uncollectible amounts. In establishing this amount, both customer-specific information as well as historical experience is considered.

In coordination with its customers and when terms are considered favorable to Woodward, Woodward from time-to-time transfers ownership to collect amounts due to Woodward for outstanding accounts receivable to third parties in exchange for cash. When the transfer of accounts receivable meets the criteria of Financial Accounting Standards Board (“FASB”) ASC Topic 860-10, “Transfers and Servicing,” and are without recourse, it is recognized as a sale and the accounts receivable is derecognized, resulting in an increase of approximately $1,398 in cash provided by operating activities during fiscal year 2024, compared to an increase in cash provided by operating activities of approximately $26,273 during fiscal year 2023.

Unbilled receivables (contract assets) 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 receivables 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 receivables 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.

For composition of accounts receivable, see Note 3, Revenue.
Inventories

Inventories: Inventories are valued at the lower of cost or net realizable value, with cost being determined using methods that approximate a first-in, first-out basis.
Short-term investments Short-term investments: From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. Amounts with maturities of less than 365 days are classified as “Other current assets.”
Property, plant and equipment

Property, plant, and equipment: Property, plant, and equipment are recorded at cost and are depreciated over the estimated useful lives of the assets. Assets are generally depreciated using the straight-line method. Assets are tested for recoverability whenever events or circumstances indicate the carrying value may not be recoverable.

Estimated lives over which fixed assets are generally depreciated at September 30, 2024 were as follows:

Land improvements

 

 

10

 

 

–

 

 

20

 

years

Buildings and improvements

 

 

10

 

 

–

 

 

40

 

years

Leasehold improvements

 

 

1

 

 

–

 

 

10

 

years

Machinery and production equipment

 

 

3

 

 

–

 

 

25

 

years

Computer equipment and software

 

 

3

 

 

–

 

 

10

 

years

Office furniture and equipment

 

 

3

 

 

–

 

 

15

 

years

Other

 

 

3

 

 

–

 

 

5

 

years

Included in computer equipment and software are Woodward’s enterprise resource planning (“ERP”) systems, which have an estimated useful life of 15 years. All other computer equipment and software is generally depreciated over three years to five years.
Leases

Leases: Right-of-use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the remaining fixed lease payments over the lease term. In determining the estimated present value of lease payments, Woodward discounts the fixed lease payments using the rate implicit in the agreement or, if the implicit rate is not known, using the incremental borrowing rate. Woodward’s incremental borrowing rate is based on the information available at the lease commencement date, with consideration given to Woodward’s recent debt issuances as well as publicly available data for instruments with similar characteristics.

For operating leases, lease expense is recognized over the expected lease term and classified as a cost of goods sold or selling, general, and administrative expense based on the nature of the underlying leased asset. For finance leases, the ROU asset is recognized over the shorter of the useful life of the asset, consistent with Woodward’s normal depreciation policy, or the lease term, and is classified as a cost of goods sold, selling, general, and administrative expense, or research and development expense, based on the nature and use of the underlying leased asset.

Certain of Woodward’s operating lease agreements include variable payments that are passed through by the landlord, such as insurance, taxes, and common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. Pass-through charges, payments due to changes in usage of the asset, and payments due to changes in indexation are included within variable rent expense and are recognized in the period in which the variable obligation for the payments was incurred.

Goodwill Goodwill: Woodward tests goodwill for impairment at the reporting unit level on an annual basis and more often if an event occurs or circumstances change that indicates the fair value of a reporting unit may be below its carrying amount. Based on the relevant U.S. GAAP authoritative guidance, Woodward aggregates components of a single operating segment into a reporting unit, if appropriate. The impairment test consists of comparing the implied fair value of each reporting unit with its carrying amount that includes goodwill. If the carrying amount of the reporting unit exceeds its implied fair value, Woodward compares the implied fair value of goodwill with the recorded carrying amount of goodwill. If the carryingamount of goodwill exceeds the implied fair value of goodwill, an impairment loss would be recognized to reduce the carrying amount to its implied fair value.

Based on the results of Woodward’s annual goodwill impairment testing, no impairment charges were recorded in the year ended September 30, 2024, 2023, or 2022 or since the goodwill was originally recorded.
Other intangibles

Other intangibles: Other intangibles are recognized apart from goodwill whenever an acquired intangible asset arises from contractual or other legal rights, or whenever it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset, or liability. Woodward amortizes the cost of other intangibles over their useful lives unless such lives are deemed indefinite. The cost of finite-lived other intangibles are amortized over their respective useful life using patterns that reflect the periods over which the economic benefits of the assets are expected to be realized. Amortization expense is allocated to cost of goods sold and selling, general, and administrative expenses based on the nature of the intangible asset. Finite-lived other intangible assets are reviewed for impairment whenever an event occurs or circumstances change indicating that the related carrying amount of the other intangible asset may not be recoverable. Impairment losses are recognized if the carrying amount of an intangible is both not recoverable and exceeds its fair value.

Woodward has recorded no impairment charges related to its other intangibles in the year ended September 30, 2024, 2023, or 2022.

Estimated lives over which intangible assets are amortized at September 30, 2024 were as follows:

 

Customer relationships and contracts

 

 

11

 

 

–

 

 

30

 

 

years

Intellectual property

 

17 years

Process technology

 

 

10

 

 

–

 

 

30

 

 

years

Other

 

1 year

Woodward has one indefinitely lived intangible asset consisting of the Woodward L’Orange trade name. The Woodward L’Orange trade name intangible asset is tested for impairment on an annual basis and more often if an event occurs or circumstances change that indicate the fair value of the Woodward L’Orange intangible asset may be below its carrying amount. The impairment test consists of comparing the fair value of the Woodward L’Orange trade name intangible asset, determined using discounted cash flows, with its carrying amount. If the carrying amount of the Woodward L’Orange intangible asset exceeds its fair value, an impairment loss would be recognized to reduce the carrying amount to its fair value. Woodward has not recorded any impairment charges against the L'Orange trade name intangible asset since it was acquired.

Impairment of long-lived assets

Impairment of long-lived assets: Woodward reviews the carrying amount of its long-lived assets or asset groups to be used in operations whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others.

If such facts indicate a potential impairment, the Company would assess the recoverability of an asset group by determining if the carrying amount of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying amount of the asset group is not recoverable, the Company will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group’s carrying amount and its estimated fair value.
Investments in marketable equity securities

Investment in marketable equity securities: Woodward holds marketable equity securities related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net.” The trading securities are included in “Other assets.” The associated obligation to provide benefits under the deferred compensation program is included in “Other liabilities.”
Investments in unconsolidated subsidiaries

Investments in unconsolidated subsidiaries: Investments in, and operating results of, entities in which Woodward does not have a controlling financial interest or the ability to exercise significant influence over the operations are included in the financial statements using the cost method of accounting. Investments and operating results of entities in which Woodward does not have a controlling interest but does have the ability to exercise significant influence over operations are included in the financial statements using the equity method of accounting.
Deferred compensation

Deferred compensation: The Company maintains a deferred compensation plan, or “rabbi trust,” as part of its overall compensation package for certain employees.

Deferred compensation obligations will be settled either by delivery of a fixed number of shares of Woodward’s common stock (in accordance with certain eligible members’ irrevocable elections) or in cash. Woodward has contributed shares of its common stock into a trust established for the future settlement of deferred compensation obligations that are payable in shares of Woodward’s common stock. Common stock held by the trust is reflected in the Consolidated Balance

Sheets as “Treasury stock held for deferred compensation” and the related deferred compensation obligation is reflected as a separate component of equity in amounts equal to the fair value of the common stock at the dates of contribution. These accounts are not adjusted for subsequent changes in the fair value of the common stock. Deferred compensation obligations that will be settled in cash are accounted for on an accrual basis in accordance with the terms of the underlying contract and are reflected in the Consolidated Balance Sheet as “Other liabilities.”

Financial instruments

Financial instruments: The Company’s financial instruments include cash and cash equivalents, short-term investments, investments in the deferred compensation program, notes receivable from municipalities, investments in term deposits, cross-currency interest rate swaps, and debt. Because of their short-term maturity, the carrying amount of cash and cash equivalents and short-term debt approximate fair value. Financial assets and liabilities recorded at fair value in the Consolidated Balance Sheets are categorized based upon a fair value hierarchy established by U.S. GAAP, which prioritizes the inputs used to measure fair value into the following levels:

Level 1: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date.

Level 2: Quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data.

Level 3: Inputs reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments.

Further information on the fair value of financial instruments can be found at Note 7, Financial instruments and fair value measurements.
Derivatives

Derivatives: The Company is exposed to various global market risks, including the effect of changes in interest rates, foreign currency exchange rates, changes in certain commodity prices, and fluctuations in various producer indices. From time to time, Woodward enters into derivative instruments for risk management purposes only, including derivatives designated as accounting hedges and/or those utilized as economic hedges. Woodward uses interest rate related derivative instruments to manage its exposure to fluctuations of interest rates. Woodward does not enter into or issue derivatives for trading or speculative purposes.

By using derivative and/or hedging instruments to manage its risk exposure, Woodward is subject, from time to time, to credit risk and market risk on those derivative instruments. Credit risk arises from the potential failure of the counterparty to perform under the terms of the derivative and/or hedging instrument. When the fair value of a derivative contract is positive, the counterparty owes Woodward, which creates credit risk for Woodward. Woodward mitigates this credit risk by entering into transactions only with counterparties that are believed to be creditworthy. Market risk arises from the potential adverse effects on the value of derivative and/or hedging instruments that result from a change in interest rates, commodity prices, or foreign currency exchange rates. Woodward minimizes this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.

From time to time, in order to hedge against foreign currency exposure, Woodward designates certain non-derivative financial instrument loans as net investment hedges. Foreign exchange gains or losses on these loans are recognized in foreign currency translation adjustments within total comprehensive (losses) earnings. Also, to hedge against the foreign currency exposure attributable to non-functional currency denominated intercompany loans, Woodward has entered into derivative instruments in fair value hedging relationships and cash flow hedging relationships.

Further information on net investment hedges and derivative instruments in fair value and cash flow hedging relationships, including the Company’s policy in accounting for these derivatives, can be found at Note 8, Derivative instruments and hedging activities.
Postretirement benefits

Postretirement benefits: The Company provides various benefits to certain current and former employees through defined benefit pension and postretirement plans. For financial reporting purposes, net periodic benefits expense and related obligations are calculated using a number of significant actuarial assumptions. Changes in net periodic expense and funding status may occur in the future due to changes in these assumptions. The funded status of defined pension and postretirement plans recognized in the statement of financial position is measured as the difference between the fair market value of the plan assets and the benefit obligation. For a defined benefit pension plan, the benefit obligation is the projected benefit obligation; for any other defined benefit postretirement plan, such as a retiree health care plan, the

benefit obligation is the accumulated benefit obligation. Any over-funded status is recognized as an asset and any underfunded status is recognized as a liability.

Projected benefit obligation is the actuarial present value as of the measurement date of all benefits attributed by the plan benefit formula to employee service rendered before the measurement date using assumptions as to future compensation levels if the plan benefit formula is based on those future compensation levels. The accumulated benefit obligation is the actuarial present value of benefits (whether vested or unvested) attributed by the plan benefit formula to employee service rendered before the measurement date and based on employee service and compensation, if applicable, prior to that date. The accumulated benefit obligation differs from the projected benefit obligation in that it includes no assumption about future compensation levels.
v3.24.3
Operations and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Sep. 30, 2024
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Schedule of Property, Plant and Equipment Useful Lives

Estimated lives over which fixed assets are generally depreciated at September 30, 2024 were as follows:

Land improvements

 

 

10

 

 

–

 

 

20

 

years

Buildings and improvements

 

 

10

 

 

–

 

 

40

 

years

Leasehold improvements

 

 

1

 

 

–

 

 

10

 

years

Machinery and production equipment

 

 

3

 

 

–

 

 

25

 

years

Computer equipment and software

 

 

3

 

 

–

 

 

10

 

years

Office furniture and equipment

 

 

3

 

 

–

 

 

15

 

years

Other

 

 

3

 

 

–

 

 

5

 

years
Schedule of Finite-Lived Intangible Assets Useful Lives

Estimated lives over which intangible assets are amortized at September 30, 2024 were as follows:

 

Customer relationships and contracts

 

 

11

 

 

–

 

 

30

 

 

years

Intellectual property

 

17 years

Process technology

 

 

10

 

 

–

 

 

30

 

 

years

Other

 

1 year
v3.24.3
Revenue (Tables)
 12 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Derived from Product Sales

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Manufactured products

 

 

83

%

 

 

84

%

 

 

84

%

MRO

 

 

15

%

 

 

14

%

 

 

14

%

Services

 

 

2

%

 

 

2

%

 

 

2

%

 
Schedule of Revenue Recognition Time

The amount of revenue recognized as point in time or over time follows:

 

 

For the Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

Point in time

 

$

853,728

 

 

$

780,794

 

 

$

1,634,522

 

 

$

748,278

 

 

$

708,458

 

 

$

1,456,736

 

 

$

593,233

 

 

$

509,737

 

 

$

1,102,970

 

Over time

 

 

1,174,890

 

 

 

514,837

 

 

 

1,689,727

 

 

 

1,019,825

 

 

 

438,005

 

 

 

1,457,830

 

 

 

926,089

 

 

 

353,731

 

 

 

1,279,820

 

Total net sales

 

$

2,028,618

 

 

$

1,295,631

 

 

$

3,324,249

 

 

$

1,768,103

 

 

$

1,146,463

 

 

$

2,914,566

 

 

$

1,519,322

 

 

$

863,468

 

 

$

2,382,790

 
Summary of Amounts Recognized Related to Changes in Estimated Total Lifetime Sales for Material Rights and Costs to Fulfill Contracts With Customers

Amounts recognized related to changes in estimated total lifetime sales for material rights and costs to fulfill contracts with customers follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue

 

$

17,154

 

 

$

1,460

 

 

$

1,514

 

Cost of goods sold

 

 

15,486

 

 

 

1,736

 

 

 

667

 
Summary of Amounts Recognized Related to Amortization of Costs to Fulfill Contracts and Contract Liabilities Not Related to Changes in Estimate

Amounts recognized related to amortization of costs to fulfill contracts and contract liabilities, which were not related to changes in estimate, follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue

 

$

7,230

 

 

$

6,741

 

 

$

4,107

 

Cost of goods sold

 

 

3,112

 

 

 

5,559

 

 

 

3,077

 
Schedule of Accounts Receivable

Accounts receivable consisted of the following:

 

 

September 30, 2024

 

 

September 30, 2023

 

Billed receivables

 

 

 

 

 

 

Trade accounts receivable

 

$

455,831

 

 

$

434,287

 

Other (Chinese financial institutions)

 

 

1,403

 

 

 

50,940

 

Total billed receivables

 

 

457,234

 

 

 

485,227

 

Current unbilled receivables (contract assets)

 

 

320,570

 

 

 

270,479

 

Total accounts receivable

 

 

777,804

 

 

 

755,706

 

Less: Allowance for uncollectible amounts

 

 

(7,738

)

 

 

(5,847

)

Total accounts receivable, net

 

$

770,066

 

 

$

749,859

 
Schedule of Uncollectible Amounts And Change in Expected Allowance for Credit Losses for Trade Accounts Receivable and Unbilled Receivables

The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Balance, beginning

 

$

5,847

 

 

$

3,922

 

 

$

3,664

 

Changes in estimates

 

 

3,219

 

 

 

7,211

 

 

 

447

 

Write-offs

 

 

(586

)

 

 

(5,305

)

 

 

(46

)

Other1

 

 

(742

)

 

 

19

 

 

 

(143

)

Balance, ending

 

$

7,738

 

 

$

5,847

 

 

$

3,922

 
(1)
Includes effects of foreign exchange rate changes during the period.
Schedule of Contract Liability

Contract liabilities consisted of the following:

 

 

September 30, 2024

 

 

September 30, 2023

 

 

 

Current

 

 

Noncurrent

 

 

Current

 

 

Noncurrent

 

Deferred revenue from material rights from JV formation

 

$

6,580

 

 

$

232,164

 

 

$

6,147

 

 

$

233,997

 

Deferred revenue from advanced invoicing and/or prepayments from customers

 

 

23,706

 

 

 

6,437

 

 

 

6,868

 

 

 

2,196

 

Liability related to customer supplied inventory

 

 

20,563

 

 

 

—

 

 

 

14,543

 

 

 

—

 

Deferred revenue from material rights related to engineering and development funding

 

 

5,942

 

 

 

186,008

 

 

 

6,190

 

 

 

178,464

 

Net contract liabilities

 

$

56,791

 

 

$

424,609

 

 

$

33,748

 

 

$

414,657

 
Schedule of Revenue Recognized Related to Noncash Consideration

The amount of revenue recognized related to noncash consideration received from customers follows:

 

 

For the Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Aerospace

 

$

61,323

 

 

$

50,329

 

 

$

63,358

 

Industrial

 

 

4,974

 

 

 

1,939

 

 

 

2,343

 

Consolidated

 

$

66,297

 

 

$

52,268

 

 

$

65,701

 
Schedule of Disaggregation of Revenue

Revenue by primary market for the Aerospace reportable segment was as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Commercial OEM

 

$

738,394

 

 

$

651,275

 

 

$

499,438

 

Commercial aftermarket

 

 

640,823

 

 

 

547,625

 

 

 

420,881

 

Defense OEM

 

 

406,810

 

 

 

368,653

 

 

 

422,016

 

Defense aftermarket

 

 

242,591

 

 

 

200,550

 

 

 

176,987

 

Total Aerospace segment net sales

 

$

2,028,618

 

 

$

1,768,103

 

 

$

1,519,322

 
Revenue by primary market for the Industrial reportable segment was as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Power generation

 

$

423,872

 

 

$

382,536

 

 

$

317,026

 

Transportation

 

 

642,174

 

 

 

527,498

 

 

 

354,682

 

Oil and gas

 

 

229,585

 

 

 

236,429

 

 

 

191,760

 

Total Industrial segment net sales

 

$

1,295,631

 

 

$

1,146,463

 

 

$

863,468

 

The customers who account for approximately 10% or more of net sales of each of Woodward’s reportable segments are as follows:

 

 

For the Year Ended September 30,

 

 

2024

 

2023

Aerospace

 

RTX Corporation, The Boeing Company

 

RTX Corporation, GE, The Boeing Company

Industrial

 

Weichai Power, Rolls-Royce PLC

 

Rolls-Royce PLC, Caterpillar Inc., Weichai Power

Net sales by geographic area, as determined based on the location of the customer, were as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

 

Aerospace

 

 

Industrial

 

 

Consolidated

 

United States

 

$

1,404,223

 

 

$

294,033

 

 

$

1,698,256

 

 

$

1,254,954

 

 

$

283,121

 

 

$

1,538,075

 

 

$

1,105,860

 

 

$

205,740

 

 

$

1,311,600

 

Germany

 

 

72,583

 

 

 

196,775

 

 

 

269,358

 

 

 

80,450

 

 

 

193,392

 

 

 

273,842

 

 

 

57,840

 

 

 

174,216

 

 

 

232,056

 

Europe, excluding Germany

 

 

202,421

 

 

 

297,517

 

 

 

499,938

 

 

 

163,222

 

 

 

273,757

 

 

 

436,979

 

 

 

128,719

 

 

 

234,795

 

 

 

363,514

 

China

 

 

96,136

 

 

 

293,908

 

 

 

390,044

 

 

 

56,773

 

 

 

186,713

 

 

 

243,486

 

 

 

49,407

 

 

 

86,972

 

 

 

136,379

 

Asia, excluding China

 

 

59,103

 

 

 

163,603

 

 

 

222,706

 

 

 

37,107

 

 

 

162,922

 

 

 

200,029

 

 

 

23,334

 

 

 

128,855

 

 

 

152,189

 

Other countries

 

 

194,152

 

 

 

49,795

 

 

 

243,947

 

 

 

175,597

 

 

 

46,558

 

 

 

222,155

 

 

 

154,162

 

 

 

32,890

 

 

 

187,052

 

Total net sales

 

$

2,028,618

 

 

$

1,295,631

 

 

$

3,324,249

 

 

$

1,768,103

 

 

$

1,146,463

 

 

$

2,914,566

 

 

$

1,519,322

 

 

$

863,468

 

 

$

2,382,790

 
v3.24.3
Earnings Per Share (Tables)
 12 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted

The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Numerator:

 

 

 

 

 

 

 

 

 

Net earnings

 

$

372,971

 

 

$

232,368

 

 

$

171,698

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

 

60,076

 

 

 

59,908

 

 

 

61,517

 

Dilutive effect of stock options; restricted and performance stock units

 

 

2,008

 

 

 

1,574

 

 

 

1,737

 

Diluted shares outstanding

 

 

62,084

 

 

 

61,482

 

 

 

63,254

 

Income per common share:

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

6.21

 

 

$

3.88

 

 

$

2.79

 

Diluted earnings per share

 

$

6.01

 

 

$

3.78

 

 

$

2.71

 
Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share

The following stock option grants were outstanding but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Options

 

 

63

 

 

 

561

 

 

 

1,019

 

Weighted-average option price

 

$

135.26

 

 

$

114.88

 

 

$

110.71

 
Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding

The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Weighted-average treasury stock shares held for deferred compensation obligations

 

 

51

 

 

 

88

 

 

 

151

 
v3.24.3
Leases (Tables)
 12 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Lease-Related Assets and Liabilities

Lease-related assets and liabilities follows:

 

 

Classification on the Consolidated Balance Sheets

 

September 30, 2024

 

 

September 30, 2023

 

Assets:

 

 

 

 

 

 

 

 

Operating lease assets

 

Other assets

 

$

27,135

 

 

$

24,680

 

Finance lease assets

 

Property, plant, and equipment, net

 

 

2,516

 

 

 

3,337

 

Total lease assets

 

 

 

 

29,651

 

 

 

28,017

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Operating lease liabilities

 

Accrued liabilities

 

 

5,029

 

 

 

4,594

 

Finance lease liabilities

 

Current portion of long-term debt

 

 

719

 

 

 

817

 

Noncurrent liabilities:

 

 

 

 

 

 

 

 

Operating lease liabilities

 

Other liabilities

 

 

22,670

 

 

 

20,685

 

Finance lease liabilities

 

Long-term debt, less current portion

 

 

2,017

 

 

 

2,733

 

Total lease liabilities

 

 

 

$

30,435

 

 

$

28,829

 

 
Supplemental Lease-Related Information

Supplemental lease-related information follows:

 

 

September 30, 2024

 

 

September 30, 2023

 

Weighted average remaining lease term

 

 

 

 

 

 

Operating leases

 

8.1 years

 

 

8.6 years

 

Finance leases

 

3.8 years

 

 

4.6 years

 

Weighted average discount rate

 

 

 

 

 

 

Operating leases

 

 

4.4

%

 

 

4.0

%

Finance leases

 

 

4.6

%

 

 

4.6

%
Lease-Related Expenses

Lease-related expenses were as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Operating lease expense

 

$

6,804

 

 

$

6,213

 

 

$

6,335

 

Amortization of financing lease assets

 

 

820

 

 

 

914

 

 

 

454

 

Interest on financing lease liabilities

 

 

138

 

 

 

157

 

 

 

51

 

Variable lease expense

 

 

1,299

 

 

 

917

 

 

 

929

 

Short-term lease expense

 

 

164

 

 

 

196

 

 

 

190

 

Sublease income1

 

 

—

 

 

 

—

 

 

 

(192

)

Total lease expense

 

$

9,225

 

 

$

8,397

 

 

$

7,767

 
(1)
Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois, each of which expired during fiscal year 2022.
Lease-Related Supplemental Cash Flow Information

Lease-related supplemental cash flow information was as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

5,375

 

 

$

5,151

 

 

$

5,303

 

Operating cash flows for finance leases

 

 

138

 

 

 

157

 

 

 

51

 

Financing cash flows for finance leases

 

 

818

 

 

 

779

 

 

 

796

 

Right-of-use assets obtained in exchange for recorded lease obligations:

 

 

 

 

 

 

 

 

 

Operating leases

 

 

6,117

 

 

 

2,230

 

 

 

14,678

 

Finance leases

 

 

—

 

 

 

48

 

 

 

4,046

 
Maturities of Lease Liabilities

Maturities of lease liabilities were as follows:

Year Ending September 30:

 

Operating Leases

 

 

Finance Leases

 

2025

 

$

5,997

 

 

$

823

 

2026

 

 

5,255

 

 

 

824

 

2027

 

 

4,338

 

 

 

822

 

2028

 

 

3,962

 

 

 

234

 

2029

 

 

3,219

 

 

 

182

 

Thereafter

 

 

10,241

 

 

 

75

 

Total lease payments

 

 

33,012

 

 

 

2,960

 

Less: imputed interest

 

 

(5,313

)

 

 

(224

)

Total lease obligations

 

$

27,699

 

 

$

2,736

 
Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements

The carrying amount of property, plant, and equipment leased to others through embedded leasing arrangements, included in “Property, plant, and equipment, net” at the Consolidated Balance Sheets, was as follows:

 

 

September 30, 2024

 

 

September 30, 2023

 

Property, plant, and equipment

 

$

48,495

 

 

$

45,766

 

Less accumulated depreciation

 

 

(32,994

)

 

 

(28,128

)

Property, plant, and equipment, net

 

$

15,501

 

 

$

17,638

 
v3.24.3
Joint Venture (Tables)
 12 Months Ended
Sep. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Unamortized Deferred Revenue from JV

Unamortized deferred revenue from material rights in connection with the JV formation included:

 

 

September 30, 2024

 

 

September 30, 2023

 

Accrued liabilities

 

$

6,580

 

 

$

6,147

 

Other liabilities

 

 

232,164

 

 

 

233,997

 
Other Income Related JV

Other income related to Woodward’s equity interest in the earnings of the JV was as follows:

 

 

For the Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Other income

 

$

41,191

 

 

$

36,846

 

 

$

18,193

 
Cash Distribution from JV

Cash distributions to Woodward from the JV, recognized in net cash provided by operating activities on the Consolidated Statements of Cash Flows, include:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Cash distributions

 

$

38,000

 

 

$

29,000

 

 

$

17,000

 

 
Net Sales to the JV

Net sales to the JV were as follows:

 

 

For the Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Net sales1

 

$

80,708

 

 

$

47,607

 

 

$

28,100

 
(1)
Net sales include a reduction of $63,794 for the fiscal year ended September 30, 2024, $49,624 for the fiscal year ended September 30, 2023, and $28,054 for the fiscal year ended September 30, 2022 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers.
Accounts Receivable, Accounts Payable, and Other Assets Related to JV

The Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows:

 

 

September 30, 2024

 

 

September 30, 2023

 

Accounts receivable

 

$

5,205

 

 

$

3,666

 

Accounts payable

 

 

11,378

 

 

 

6,276

 

Other assets

 

 

19,219

 

 

 

16,028

 
Contract Liabilities and Costs to Fulfill a Contract Contract liabilities and costs to fulfill a contract was as follows:

 

 

September 30, 2024

 

 

September 30, 2023

 

Contract liabilities

 

$

78,226

 

 

$

84,059

 

Costs to fulfill a contract

 

 

78,226

 

 

 

84,059

 
v3.24.3
Financial Instruments and Fair Value Measurements (Tables)
 12 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The table below presents information about Woodward’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value.

 

 

At September 30, 2024

 

 

At September 30, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in banks and financial institutions

 

$

23,128

 

 

$

—

 

 

$

—

 

 

$

23,128

 

 

$

28,560

 

 

$

—

 

 

$

—

 

 

$

28,560

 

Equity securities

 

 

30,782

 

 

 

—

 

 

 

—

 

 

 

30,782

 

 

 

24,913

 

 

 

—

 

 

 

—

 

 

 

24,913

 

Cross-currency interest rate swaps

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,389

 

 

 

—

 

 

 

5,389

 

Total financial assets

 

$

53,910

 

 

$

—

 

 

$

—

 

 

$

53,910

 

 

$

53,473

 

 

$

5,389

 

 

$

—

 

 

$

58,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cross-currency interest rate swaps

 

$

—

 

 

$

12,004

 

 

$

—

 

 

$

12,004

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Total financial liabilities

 

$

—

 

 

$

12,004

 

 

$

—

 

 

$

12,004

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 
Estimated Fair Values of Financial Instruments The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Consolidated Balance Sheets were as follows

 

 

 

 

At September 30, 2024

 

 

At September 30, 2023

 

 

 

Fair Value
Hierarchy
Level

 

Estimated
Fair Value

 

 

Carrying
Cost

 

 

Estimated
Fair Value

 

 

Carrying
Cost

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes receivable from municipalities

 

2

 

$

6,961

 

 

$

6,514

 

 

$

7,794

 

 

$

7,688

 

Investments in short-term time deposits

 

2

 

 

3,064

 

 

 

3,064

 

 

 

6,095

 

 

 

6,107

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

2

 

$

634,071

 

 

$

656,360

 

 

$

661,507

 

 

$

722,671

 
v3.24.3
Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedges, Assets [Abstract]  
Impact of Derivative Instruments on Earnings

The following table discloses the amount of (income) expense recognized in earnings on derivative instruments designated as qualifying hedging instruments:

 

 

 

 

Year Ended September 30,

 

Derivatives in:

 

Location

 

2024

 

 

2023

 

 

2022

 

Cross-currency interest rate swap agreement designated as fair value hedges

 

Selling, general and administrative expenses

 

$

—

 

 

$

939

 

 

$

(2,844

)

Cross-currency interest rate swap agreements designated as cash flow hedges

 

Selling, general and administrative expenses

 

 

23,093

 

 

 

32,285

 

 

 

(66,036

)

 

 

 

$

23,093

 

 

$

33,224

 

 

$

(68,880

)

The following table discloses the amount of (gain) loss recognized in accumulated OCI on derivative instruments designated as qualifying hedging instruments:

 

 

 

 

Year Ended September 30,

 

Derivatives in:

 

Location

 

2024

 

 

2023

 

 

2022

 

Cross-currency interest rate swap agreement designated as fair value hedges

 

Selling, general and administrative expenses

 

$

—

 

 

$

875

 

 

$

(2,854

)

Cross-currency interest rate swap agreements designated as cash flow hedges

 

Selling, general and administrative expenses

 

 

18,551

 

 

 

35,712

 

 

 

(86,194

)

 

 

 

$

18,551

 

 

$

36,587

 

 

$

(89,048

)

The following table discloses the amount of (gain) loss reclassified from accumulated OCI on derivative instruments designated as qualifying hedging instruments:

 

 

 

 

Year Ended September 30,

 

Derivatives in:

 

Location

 

2024

 

 

2023

 

 

2022

 

Cross-currency interest rate swap agreement designated as fair value hedges

 

Selling, general and administrative expenses

 

$

—

 

 

$

939

 

 

$

(2,844

)

Cross-currency interest rate swap agreements designated as cash flow hedges

 

Selling, general and administrative expenses

 

 

23,093

 

 

 

32,285

 

 

 

(66,036

)

 

 

 

$

23,093

 

 

$

33,224

 

 

$

(68,880

)
v3.24.3
Supplemental Statement of Cash Flows Information (Tables)
 12 Months Ended
Sep. 30, 2024
Supplemental Cash Flow Information [Abstract]  
Schedule of Supplemental Statement of Cash Flows Information

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Interest paid

 

$

36,700

 

 

$

35,306

 

 

$

27,435

 

Income taxes paid

 

 

152,049

 

 

 

92,509

 

 

 

29,560

 

Income tax refunds received

 

 

6,521

 

 

 

3,661

 

 

 

7,481

 

Non-cash activities:

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment on account

 

 

22,056

 

 

 

11,276

 

 

 

6,452

 

Common shares issued from treasury to settle benefit obligations

 

 

21,889

 

 

 

19,466

 

 

 

17,132

 
v3.24.3
Acquisitions (Tables)
 12 Months Ended
Sep. 30, 2024
Acquisitions And Divestitures [Abstract]  
Schedule of Purchase Price Consideration The purchase price of PM Control, prepared consistent with the required ASC 805 framework, is allocated as follows:

Cash paid to Sellers

 

$

22,890

 

Working capital adjustment

 

 

(878

)

Less acquired cash and restricted cash

 

 

(1,341

)

Plus settlement of pre-existing relationships

 

 

750

 

Total purchase price

 

$

21,421

 
v3.24.3
Inventories (Tables)
 12 Months Ended
Sep. 30, 2024
Inventory, Net [Abstract]  
Schedule of Inventories

 

 

September 30, 2024

 

 

September 30, 2023

 

Raw materials

 

$

161,734

 

 

$

133,699

 

Work in progress

 

 

147,676

 

 

 

127,438

 

Component parts (1)

 

 

376,456

 

 

 

327,522

 

Finished goods

 

 

91,787

 

 

 

74,594

 

Customer supplied inventory

 

 

20,563

 

 

 

14,543

 

On-hand inventory for which control has transferred to the customer

 

 

(189,124

)

 

 

(159,953

)

 

$

609,092

 

 

$

517,843

 
(1)
Component parts include items that can be sold separately as finished goods or included in the manufacture of other products.
v3.24.3
Property, Plant, and Equipment (Tables)
 12 Months Ended
Sep. 30, 2024
Property, Plant and Equipment, Net [Abstract]  
Schedule of Property Plant and Equipment, Net

 

 

September 30, 2024

 

 

September 30, 2023

 

Land and land improvements

 

$

91,105

 

 

$

89,352

 

Buildings and building improvements

 

 

599,897

 

 

 

589,735

 

Leasehold improvements

 

 

22,022

 

 

 

21,079

 

Machinery and production equipment

 

 

849,595

 

 

 

807,244

 

Computer equipment and software

 

 

120,185

 

 

 

120,290

 

Office furniture and equipment

 

 

42,873

 

 

 

41,943

 

Other

 

 

33,392

 

 

 

20,073

 

Construction in progress

 

 

71,890

 

 

 

55,487

 

 

 

1,830,959

 

 

 

1,745,203

 

Less accumulated depreciation

 

 

(890,244

)

 

 

(832,109

)

Property, plant, and equipment, net

 

$

940,715

 

 

$

913,094

 
Schedule of Depreciation Expense

Woodward had depreciation expense as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Depreciation expense

 

$

82,578

 

 

$

82,154

 

 

$

83,019

 
v3.24.3
Goodwill (Tables)
 12 Months Ended
Sep. 30, 2024
Goodwill And Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill

 

 

September 30, 2023

 

 

Effects of Foreign Currency Translation

 

 

September 30, 2024

 

Aerospace

 

$

455,423

 

 

$

—

 

 

$

455,423

 

Industrial

 

 

336,045

 

 

 

15,175

 

 

 

351,220

 

Consolidated

 

$

791,468

 

 

$

15,175

 

 

$

806,643

 

 

 

 

 

September 30, 2022

 

 

Effects of Foreign Currency Translation

 

 

September 30, 2023

 

Aerospace

 

$

455,423

 

 

$

—

 

 

$

455,423

 

Industrial

 

 

317,136

 

 

 

18,909

 

 

 

336,045

 

Consolidated

 

$

772,559

 

 

$

18,909

 

 

$

791,468

 
v3.24.3
Intangible Assets, Net (Tables)
 12 Months Ended
Sep. 30, 2024
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Schedule of Finite-lived and Indefinite-lived Intangible Assets by Major Class

 

 

September 30, 2024

 

 

September 30, 2023

 

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships and contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

281,683

 

 

$

(246,152

)

 

$

35,531

 

 

$

281,683

 

 

$

(236,143

)

 

$

45,540

 

Industrial

 

 

399,030

 

 

 

(114,391

)

 

 

284,639

 

 

 

378,804

 

 

 

(90,084

)

 

 

288,720

 

Total

 

$

680,713

 

 

$

(360,543

)

 

$

320,170

 

 

$

660,487

 

 

$

(326,227

)

 

$

334,260

 

Intellectual property:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Industrial

 

 

3,139

 

 

 

(3,139

)

 

 

—

 

 

 

3,139

 

 

 

(3,139

)

 

 

—

 

Total

 

$

3,139

 

 

$

(3,139

)

 

$

—

 

 

$

3,139

 

 

$

(3,139

)

 

$

—

 

Process technology:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

44,570

 

 

$

(40,346

)

 

$

4,224

 

 

$

44,570

 

 

$

(39,551

)

 

$

5,019

 

Industrial

 

 

87,257

 

 

 

(35,983

)

 

 

51,274

 

 

 

83,456

 

 

 

(31,709

)

 

 

51,747

 

Total

 

$

131,827

 

 

$

(76,329

)

 

$

55,498

 

 

$

128,026

 

 

$

(71,260

)

 

$

56,766

 

Other intangibles:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Industrial

 

 

592

 

 

 

(592

)

 

 

—

 

 

 

554

 

 

 

(524

)

 

 

30

 

Total

 

$

592

 

 

$

(592

)

 

$

—

 

 

$

554

 

 

$

(524

)

 

$

30

 

Intangible asset with indefinite life:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade name:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Industrial

 

 

64,751

 

 

 

—

 

 

 

64,751

 

 

 

61,307

 

 

 

—

 

 

 

61,307

 

Total

 

$

64,751

 

 

$

—

 

 

$

64,751

 

 

$

61,307

 

 

$

—

 

 

$

61,307

 

Total intangibles:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

$

326,253

 

 

$

(286,498

)

 

$

39,755

 

 

$

326,253

 

 

$

(275,694

)

 

$

50,559

 

Industrial

 

 

554,769

 

 

 

(154,105

)

 

 

400,664

 

 

 

527,260

 

 

 

(125,456

)

 

 

401,804

 

Consolidated Total

 

$

881,022

 

 

$

(440,603

)

 

$

440,419

 

 

$

853,513

 

 

$

(401,150

)

 

$

452,363

 
Schedule of Finite-Lived Intangible Assets Amortization Expense

Woodward recorded amortization expense associated with intangibles of the following:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Amortization expense

 

$

33,592

 

 

$

37,589

 

 

$

37,609

 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Future amortization expense associated with intangibles is expected to be:

Year Ending September 30:

 

 

 

2025

 

$

28,360

 

2026

 

 

28,350

 

2027

 

 

28,297

 

2028

 

 

27,704

 

2029

 

 

26,375

 

Thereafter

 

 

236,582

 

 

$

375,668

 
v3.24.3
Credit Facilities, Short-term Borrowings and Long-term Debt (Tables)
 12 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Short-term Borrowings and Availability Under Various Short-term Credit Facilities

As of September 30, 2024, Woodward’s short-term borrowings and availability under its various short-term credit facilities follows:

 

 

Total availability

 

 

Outstanding
letters of credit
and guarantees

 

 

Banker acceptance notes issued

 

 

Outstanding
borrowings

 

 

Remaining
availability

 

Revolving credit facility

 

$

1,000,000

 

 

$

(7,864

)

 

$

—

 

 

$

(217,000

)

 

$

775,136

 

Foreign lines of credit and overdraft facilities

 

 

25,604

 

 

 

(244

)

 

 

(5,589

)

 

 

—

 

 

 

19,771

 

Foreign performance guarantee facilities

 

 

97

 

 

 

(59

)

 

 

—

 

 

 

—

 

 

 

38

 

 

 

$

1,025,701

 

 

$

(8,167

)

 

$

(5,589

)

 

$

(217,000

)

 

$

794,945

 
Schedule of Long-term Debt

 

 

September 30, 2024

 

 

September 30, 2023

 

Series H notes – 4.03%, due November 15, 2023; unsecured

 

$

—

 

 

$

25,000

 

Series I notes – 4.18%, due November 15, 2025; unsecured

 

 

25,000

 

 

 

25,000

 

Series K notes – 4.03%, due November 15, 2023; unsecured

 

 

—

 

 

 

50,000

 

Series L notes – 4.18%, due November 15, 2025; unsecured

 

 

50,000

 

 

 

50,000

 

Series M notes – 1.12% due September 23, 2026; unsecured

 

 

44,656

 

 

 

42,280

 

Series N notes – 1.31% due September 23, 2028; unsecured

 

 

85,963

 

 

 

81,390

 

Series O notes – 1.57% due September 23, 2031; unsecured

 

 

48,005

 

 

 

45,451

 

Series P notes – 4.27% due May 30, 2025; unsecured

 

 

85,000

 

 

 

85,000

 

Series Q notes – 4.35% due May 30, 2027; unsecured

 

 

85,000

 

 

 

85,000

 

Series R notes – 4.41% due May 30, 2029; unsecured

 

 

75,000

 

 

 

75,000

 

Series S notes – 4.46% due May 30, 2030; unsecured

 

 

75,000

 

 

 

75,000

 

Series T notes – 4.61% due May 30, 2033; unsecured

 

 

80,000

 

 

 

80,000

 

Finance leases (Note 5)

 

 

2,736

 

 

 

3,550

 

Unamortized debt issuance costs

 

 

(890

)

 

 

(1,145

)

Total long-term debt

 

 

655,470

 

 

 

721,526

 

Less: Current portion of long-term debt

 

 

85,719

 

 

 

75,817

 

Long-term debt, less current portion

 

$

569,751

 

 

$

645,709

 
Schedule of Future Principal Payments of Notes and Financing Leases

Required future principal payments of the Notes and financing leases as of September 30, 2024 are as follows:

Year Ending September 30:

 

 

 

2025

 

$

85,719

 

2026

 

 

119,658

 

2027

 

 

85,021

 

2028

 

 

87,209

 

2029

 

 

75,000

 

Thereafter

 

 

203,753

 

 

$

656,360

 

 
v3.24.3
Accrued Liabilities (Tables)
 12 Months Ended
Sep. 30, 2024
Accrued Liabilities [Line Items]  
Accrued Liabilities

 

 

September 30, 2024

 

 

September 30, 2023

 

Salaries and other member benefits

 

$

151,921

 

 

$

146,713

 

Product warranties and related liabilities

 

 

18,844

 

 

 

18,162

 

Interest payable

 

 

12,163

 

 

 

13,611

 

Accrued retirement benefits

 

 

2,888

 

 

 

2,822

 

Net current contract liabilities

 

 

56,791

 

 

 

33,748

 

Taxes, other than income

 

 

15,884

 

 

 

13,436

 

Other

 

 

34,151

 

 

 

34,124

 

 

 

$

292,642

 

 

$

262,616

 
Changes in Accrued Product Warranties and Related Liabilities Changes in accrued product warranties and related liabilities were as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Beginning of period

 

$

18,162

 

 

$

40,042

 

 

$

17,481

 

Additions, net of recoveries

 

 

13,797

 

 

 

25,984

 

 

 

29,827

 

Reductions for settlement

 

 

(13,368

)

 

 

(47,949

)

 

 

(6,937

)

Foreign currency exchange rate changes

 

 

253

 

 

 

85

 

 

 

(329

)

End of period

 

$

18,844

 

 

$

18,162

 

 

$

40,042

 
Employee Severance [Member]  
Accrued Liabilities [Line Items]  
Loss Reserve & Restructuring Reserve Activity

The summary of activity in accrued restructuring charges is as follows:

 

 

 

 

 

Period Activity

 

 

 

 

 

 

September 30, 2022

 

 

Charges

 

 

Payments

 

 

Non-cash
activity

 

 

September 30, 2023

 

Workforce management costs associated with:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost reduction plan

 

$

—

 

 

$

5,172

 

 

$

(5,207

)

 

$

35

 

 

$

—

 

Aerospace

 

 

139

 

 

 

—

 

 

 

(139

)

 

 

—

 

 

 

—

 

Industrial

 

 

944

 

 

 

—

 

 

 

(944

)

 

 

—

 

 

 

—

 

Total

 

$

1,083

 

 

$

5,172

 

 

$

(6,290

)

 

$

35

 

 

$

—

 
v3.24.3
Other Liabilities (Tables)
 12 Months Ended
Sep. 30, 2024
Other Liabilities, Noncurrent [Abstract]  
Schedule of Other Liabilities

 

 

September 30, 2024

 

 

September 30, 2023

 

Net accrued retirement benefits, less amounts recognized within accrued liabilities

 

$

83,094

 

 

$

72,570

 

Total unrecognized tax benefits

 

 

10,104

 

 

 

8,020

 

Noncurrent income taxes payable

 

 

5,894

 

 

 

10,714

 

Deferred economic incentives (1)

 

 

7,062

 

 

 

5,797

 

Noncurrent operating lease liabilities

 

 

22,670

 

 

 

20,685

 

Cross-currency swap derivative liability

 

 

10,562

 

 

 

—

 

Net noncurrent contract liabilities

 

 

424,609

 

 

 

414,657

 

Other

 

 

13,385

 

 

 

11,047

 

 

$

577,380

 

 

$

543,490

 
(1)
Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects.
v3.24.3
Other (Income) Expense, Net (Tables)
 12 Months Ended
Sep. 30, 2024
Nonoperating Income (Expense) [Abstract]  
Schedule of Other (Income) Expense, Net

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Equity interest in the earnings of the JV

 

$

(41,191

)

 

$

(36,846

)

 

$

(18,193

)

Net (gain) loss on sales of assets and businesses

 

 

(457

)

 

 

1,491

 

 

 

(1,775

)

Gain on non-recurring matter related to a previous acquisition

 

 

(4,803

)

 

 

—

 

 

 

—

 

Rent income

 

 

(347

)

 

 

(360

)

 

 

(672

)

Net (gain) loss on investments in deferred compensation program

 

 

(6,571

)

 

 

(3,265

)

 

 

6,295

 

Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense

 

 

(11,764

)

 

 

(10,547

)

 

 

(11,572

)

Other

 

 

(2,035

)

 

 

(764

)

 

 

(774

)

 

$

(67,168

)

 

$

(50,291

)

 

$

(26,691

)
v3.24.3
Income Taxes (Tables)
 12 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense (Benefit)

Income taxes consisted of the following:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

46,102

 

 

$

41,195

 

 

$

21,869

 

State

 

 

4,841

 

 

 

2,641

 

 

 

2,310

 

Foreign

 

 

74,663

 

 

 

39,719

 

 

 

27,577

 

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

(18,888

)

 

 

(38,136

)

 

 

(13,216

)

State

 

 

(7,341

)

 

 

(10,006

)

 

 

(8,623

)

Foreign

 

 

(18,377

)

 

 

7,987

 

 

 

(1,717

)

 

 

$

81,000

 

 

$

43,400

 

 

$

28,200

 

 
Earnings Before Income Taxes by Geographical Area

Earnings before income taxes by geographical area consisted of the following:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

United States

 

$

244,320

 

 

$

122,389

 

 

$

99,427

 

Other countries

 

 

209,651

 

 

 

153,379

 

 

 

100,471

 

 

 

$

453,971

 

 

$

275,768

 

 

$

199,898

 
Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred income taxes presented in the Consolidated Balance Sheets are related to the following:

 

 

September 30, 2024

 

 

September 30, 2023

 

Deferred tax assets:

 

 

 

 

 

 

Defined benefit plans, other postretirement

 

$

3,695

 

 

$

3,769

 

Foreign net operating loss carryforwards

 

 

6,547

 

 

 

3,748

 

Inventory

 

 

77,013

 

 

 

68,034

 

Stock-based and other compensation

 

 

48,360

 

 

 

51,099

 

Deferred revenue net of unbilled receivables

 

 

43,400

 

 

 

46,283

 

Other reserves

 

 

7,850

 

 

 

8,244

 

Tax credits and incentives

 

 

30,886

 

 

 

28,319

 

Lease obligations

 

 

6,851

 

 

 

6,103

 

Other

 

 

4,622

 

 

 

4,476

 

Capitalized research and development costs

 

 

63,080

 

 

 

37,328

 

Valuation allowance

 

 

(5,983

)

 

 

(3,827

)

Total deferred tax assets, net of valuation allowance

 

 

286,321

 

 

 

253,576

 

Deferred tax liabilities:

 

 

 

 

 

 

Goodwill and intangibles - net

 

 

(198,012

)

 

 

(194,891

)

Property, plant and equipment

 

 

(97,340

)

 

 

(99,547

)

Right of use assets

 

 

(6,691

)

 

 

(5,948

)

Defined benefit plans, pension

 

 

(13,133

)

 

 

(9,892

)

Other

 

 

(8,612

)

 

 

(17,568

)

Total deferred tax liabilities

 

 

(323,788

)

 

 

(327,846

)

Net deferred tax liabilities

 

$

(37,467

)

 

$

(74,270

)
Reconciliation of U.S. Statutory Tax Rate to Effective Tax Rate

The following is a reconciliation of the U.S. federal statutory tax 21% in the fiscal years ended September 30, 2024, September 30, 2023, and September 30, 2022 to Woodward’s effective income tax rate:

 

 

Year Ending September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Percent of pretax earnings

 

 

 

 

 

 

 

 

 

Statutory tax rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income taxes, net of federal tax benefit

 

 

(0.4

)

 

 

(1.6

)

 

 

(2.5

)

Taxes on international activities

 

 

(0.8

)

 

 

(0.6

)

 

 

0.8

 

Research credit

 

 

(2.1

)

 

 

(3.9

)

 

 

(4.5

)

Net excess income tax benefit from stock-based compensation

 

 

(3.0

)

 

 

(3.7

)

 

 

(2.5

)

Adjustments of prior period tax items

 

 

0.9

 

 

 

(1.3

)

 

 

—

 

Compensation and benefits

 

 

0.8

 

 

 

0.6

 

 

 

0.3

 

Distributable foreign earnings

 

 

1.4

 

 

 

4.6

 

 

 

—

 

Other items, net

 

 

—

 

 

 

0.6

 

 

 

1.5

 

Effective tax rate

 

 

17.8

%

 

 

15.7

%

 

 

14.1

%
Reconciliation of the Beginning and Ending Amounts of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows:

 

 

Year Ending September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Beginning balance

 

$

11,112

 

 

$

11,938

 

 

$

15,199

 

Additions to current year tax positions

 

 

5,673

 

 

 

3,933

 

 

 

1,783

 

Reductions to prior year tax positions

 

 

(99

)

 

 

(141

)

 

 

(963

)

Additions to prior year tax positions

 

 

180

 

 

 

—

 

 

 

112

 

Lapse of applicable statute of limitations

 

 

(2,592

)

 

 

(4,618

)

 

 

(4,193

)

Ending balance

 

$

14,274

 

 

$

11,112

 

 

$

11,938

 
v3.24.3
Retirement Benefits (Tables)
 12 Months Ended
Sep. 30, 2024
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Amount of Expense Associated with Defined Contribution Plans

The amount of expense associated with defined contribution plans was as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Company costs

 

$

51,148

 

 

$

44,202

 

 

$

40,898

 
Defined Benefit Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Net Periodic Benefit Costs

Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statement of Earnings:

 

 

Year Ended September 30,

 

 

 

United States

 

 

Other Countries

 

 

Total

 

 

 

2024

 

 

2023

 

 

2022

 

 

2024

 

 

2023

 

 

2022

 

 

2024

 

 

2023

 

 

2022

 

Service cost

 

$

775

 

 

$

893

 

 

$

1,554

 

 

$

1,244

 

 

$

1,333

 

 

$

2,339

 

 

$

2,019

 

 

$

2,226

 

 

$

3,893

 

Interest cost

 

 

7,598

 

 

 

7,297

 

 

 

5,281

 

 

 

3,213

 

 

 

3,137

 

 

 

1,612

 

 

 

10,811

 

 

 

10,434

 

 

 

6,893

 

Expected return on plan assets

 

 

(9,084

)

 

 

(8,297

)

 

 

(10,853

)

 

 

(2,406

)

 

 

(2,300

)

 

 

(2,434

)

 

 

(11,490

)

 

 

(10,597

)

 

 

(13,287

)

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss (gain)

 

 

226

 

 

 

292

 

 

 

259

 

 

 

(679

)

 

 

(620

)

 

 

555

 

 

 

(453

)

 

 

(328

)

 

 

814

 

Net prior service cost

 

 

698

 

 

 

698

 

 

 

981

 

 

 

23

 

 

 

22

 

 

 

23

 

 

 

721

 

 

 

720

 

 

 

1,004

 

Net periodic cost (benefit)

 

$

213

 

 

$

883

 

 

$

(2,778

)

 

$

1,395

 

 

$

1,572

 

 

$

2,095

 

 

$

1,608

 

 

$

2,455

 

 

$

(683

)
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

The following tables provide a reconciliation of the changes in the projected benefit obligation and fair value of assets for the defined benefit pension plans:

 

 

At or for the Year Ended September 30,

 

 

 

United States

 

 

Other Countries

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Changes in projected benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

 

$

127,222

 

 

$

132,444

 

 

$

67,263

 

 

$

65,477

 

 

$

194,485

 

 

$

197,921

 

Plan amendment

 

 

1,121

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,121

 

 

 

—

 

Service cost

 

 

775

 

 

 

893

 

 

 

1,244

 

 

 

1,333

 

 

 

2,019

 

 

 

2,226

 

Interest cost

 

 

7,598

 

 

 

7,297

 

 

 

3,213

 

 

 

3,137

 

 

 

10,811

 

 

 

10,434

 

Net actuarial losses (gains)

 

 

13,249

 

 

 

(4,946

)

 

 

4,128

 

 

 

(4,442

)

 

 

17,377

 

 

 

(9,388

)

Contribution by participants

 

 

—

 

 

 

—

 

 

 

12

 

 

 

11

 

 

 

12

 

 

 

11

 

Benefits paid

 

 

(9,010

)

 

 

(8,466

)

 

 

(3,647

)

 

 

(3,365

)

 

 

(12,657

)

 

 

(11,831

)

Foreign currency exchange rate changes

 

 

—

 

 

 

—

 

 

 

5,134

 

 

 

5,112

 

 

 

5,134

 

 

 

5,112

 

Projected benefit obligation at end of year

 

$

140,955

 

 

$

127,222

 

 

$

77,347

 

 

$

67,263

 

 

$

218,302

 

 

$

194,485

 

Changes in fair value of plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

155,370

 

 

$

154,481

 

 

$

50,775

 

 

$

47,579

 

 

$

206,145

 

 

$

202,060

 

Actual return on plan assets

 

 

33,382

 

 

 

9,355

 

 

 

3,866

 

 

 

573

 

 

 

37,248

 

 

 

9,928

 

Contributions by the Company

 

 

175

 

 

 

—

 

 

 

1,863

 

 

 

2,322

 

 

 

2,038

 

 

 

2,322

 

Contributions by plan participants

 

 

—

 

 

 

—

 

 

 

12

 

 

 

11

 

 

 

12

 

 

 

11

 

Benefits paid

 

 

(9,010

)

 

 

(8,466

)

 

 

(3,647

)

 

 

(3,365

)

 

 

(12,657

)

 

 

(11,831

)

Foreign currency exchange rate changes

 

 

—

 

 

 

—

 

 

 

4,607

 

 

 

3,655

 

 

 

4,607

 

 

 

3,655

 

Fair value of plan assets at end of year

 

$

179,917

 

 

$

155,370

 

 

$

57,476

 

 

$

50,775

 

 

$

237,393

 

 

$

206,145

 

Net over/(under) funded status at end of year

 

$

38,962

 

 

$

28,148

 

 

$

(19,871

)

 

$

(16,488

)

 

$

19,091

 

 

$

11,660

 
Schedule of Accumulated Benefit Obligations In Excess of and Less Than Fair Value of Plan Assets

 

 

Plans with accumulated
benefit obligation in
excess of plan assets

 

 

Plans with accumulated
benefit obligation less
than plan assets

 

 

 

At September 30,

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Projected benefit obligation

 

$

(56,783

)

 

$

(49,726

)

 

$

(161,519

)

 

$

(144,759

)

Accumulated benefit obligation

 

 

(56,757

)

 

 

(49,711

)

 

 

(160,302

)

 

 

(143,914

)

Fair value of plan assets

 

 

20,053

 

 

 

18,047

 

 

 

217,340

 

 

 

188,098

 
Schedule of Amounts Recognized in Balance Sheets and Accumulated Other Comprehensive (Earnings) Losses

The following tables provide the amounts recognized in the Consolidated Balance Sheets and accumulated other comprehensive (earnings) losses for the defined benefit pension plans:

 

 

Year Ended September 30,

 

 

 

United States

 

 

Other Countries

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Amounts recognized in the Consolidated Balance Sheets consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other non-current assets

 

$

39,148

 

 

$

29,172

 

 

$

16,673

 

 

$

14,167

 

 

$

55,821

 

 

$

43,339

 

Accrued liabilities

 

 

—

 

 

 

—

 

 

 

(1,166

)

 

 

(1,084

)

 

 

(1,166

)

 

 

(1,084

)

Other non-current liabilities

 

 

(186

)

 

 

(1,024

)

 

 

(35,378

)

 

 

(29,571

)

 

 

(35,564

)

 

 

(30,595

)

Net over/(under) funded status at end of year

 

$

38,962

 

 

$

28,148

 

 

$

(19,871

)

 

$

(16,488

)

 

$

19,091

 

 

$

11,660

 

Amounts recognized in accumulated other
comprehensive (earnings) losses consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrecognized net prior service cost

 

$

3,200

 

 

$

2,777

 

 

$

509

 

 

$

487

 

 

$

3,709

 

 

$

3,264

 

Unrecognized net losses (gains)

 

 

(2,749

)

 

 

8,527

 

 

 

(4,655

)

 

 

(7,847

)

 

 

(7,404

)

 

 

680

 

Total amounts recognized

 

 

451

 

 

 

11,304

 

 

 

(4,146

)

 

 

(7,360

)

 

 

(3,695

)

 

 

3,944

 

Deferred taxes

 

 

(3,499

)

 

 

(6,101

)

 

 

(191

)

 

 

808

 

 

 

(3,690

)

 

 

(5,293

)

Amounts recognized in accumulated other comprehensive (earnings) losses

 

$

(3,048

)

 

$

5,203

 

 

$

(4,337

)

 

$

(6,552

)

 

$

(7,385

)

 

$

(1,349

)
Schedule of Changes in Plan Assets and Benefit Obligations Recorded in Other Comprehensive (Earnings) Losses

The following table reconciles the changes in accumulated other comprehensive (earnings) losses for the defined benefit pension plans:

 

 

Year Ended September 30,

 

 

 

United States

 

 

Other Countries

 

 

Total

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Beginning of year

 

$

11,304

 

 

$

18,297

 

 

$

(7,360

)

 

$

(4,997

)

 

$

3,944

 

 

$

13,300

 

Net (gain) loss

 

 

(11,050

)

 

 

(6,003

)

 

 

2,668

 

 

 

(2,716

)

 

 

(8,382

)

 

 

(8,719

)

Prior service cost

 

 

1,121

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,121

 

 

 

—

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) gain

 

 

(226

)

 

 

(292

)

 

 

679

 

 

 

620

 

 

 

453

 

 

 

328

 

Prior service cost

 

 

(698

)

 

 

(698

)

 

 

(23

)

 

 

(22

)

 

 

(721

)

 

 

(720

)

Foreign currency exchange rate changes

 

 

—

 

 

 

—

 

 

 

(110

)

 

 

(245

)

 

 

(110

)

 

 

(245

)

End of year

 

$

451

 

 

$

11,304

 

 

$

(4,146

)

 

$

(7,360

)

 

$

(3,695

)

 

$

3,944

 
Schedule of Expected Benefit Payments

Pension benefit payments are made from the assets of the pension plans. The German pension plans are unfunded; therefore, benefit payments are made from Company contributions into these plans as required to meet the payment obligations. Using foreign exchange rates as of September 30, 2024 and expected future service assumptions, it is anticipated that the future benefit payments will be as follows:

Year Ending September 30,

 

United States

 

 

Other
Countries

 

 

Total

 

2025

 

$

9,637

 

 

$

3,553

 

 

$

13,190

 

2026

 

 

9,997

 

 

 

3,656

 

 

 

13,653

 

2027

 

 

10,253

 

 

 

3,768

 

 

 

14,021

 

2028

 

 

10,481

 

 

 

4,047

 

 

 

14,528

 

2029

 

 

10,655

 

 

 

4,097

 

 

 

14,752

 

2030-2034

 

 

53,308

 

 

 

24,350

 

 

 

77,658

 

 
Schedule of Allocation of Plan Assets, Actual and Target Allocations

The asset allocations are monitored and rebalanced regularly by investment managers assigned to the individual pension plans. The actual allocations of pension plan assets and target allocation ranges by asset class, are as follows:

 

 

At September 30,

 

 

2024

 

2023

 

 

Percentage of Plan
Assets

 

Target Allocation
Ranges

 

Percentage of Plan
Assets

 

Target Allocation
Ranges

United States:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Class

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities

 

30.5%

 

2.3%

 

 

—

 

 

51.1%

 

31.9%

 

2.3%

 

 

—

 

 

51.2%

Debt Securities

 

67.6%

 

58.9%

 

 

—

 

 

96.7%

 

66.6%

 

58.8%

 

 

—

 

 

96.5%

Other

 

1.9%

 

0.0%

 

1.5%

 

0.0%

 

 

100.0%

 

 

 

 

 

 

 

 

100.0%

 

 

 

 

 

 

 

United Kingdom:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Class

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities

 

0.0%

 

0.0%

 

20.7%

 

10.0%

 

 

—

 

 

30.0%

Debt Securities

 

95.8%

 

90.0%

 

 

—

 

 

100.0%

 

79.2%

 

70.0%

 

 

—

 

 

90.0%

Other

 

4.2%

 

0.0%

 

 

—

 

 

10.0%

 

0.1%

 

0.0%

 

 

100.0%

 

 

 

 

 

 

 

 

100.0%

 

 

 

 

 

 

 

Japan:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Class

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities

 

39.7%

 

36.0%

 

 

—

 

 

44.0%

 

40.0%

 

36.0%

 

 

—

 

 

44.0%

Debt Securities

 

59.4%

 

55.0%

 

 

—

 

 

63.0%

 

60.0%

 

55.0%

 

 

—

 

 

63.0%

Other

 

0.9%

 

0.0%

 

 

—

 

 

2.0%

 

0.0%

 

0.0%

 

 

—

 

 

2.0%

 

 

100.0%

 

 

 

 

 

 

 

 

100.0%

 

 

 

 

 

 

 
Schedule of Allocation of Plan Assets, Fair Value Hierarchy

The following tables present Woodward’s pension plan assets using the fair value hierarchy established by U.S. GAAP:

 

 

At September 30, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

United
States

 

 

Other
Countries

 

 

United
States

 

 

Other
Countries

 

 

United
States

 

 

Other
Countries

 

 

Total

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,370

 

 

$

2,130

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,500

 

Mutual funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate bond fund

 

 

121,581

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

121,581

 

U.S. equity large cap fund

 

 

33,454

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,454

 

International equity large cap growth fund

 

 

21,512

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

21,512

 

Pooled funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japanese equity securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,939

 

 

 

—

 

 

 

—

 

 

 

1,939

 

International equity securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,786

 

 

 

—

 

 

 

—

 

 

 

1,786

 

Japanese fixed income securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,157

 

 

 

—

 

 

 

—

 

 

 

4,157

 

International fixed income securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,409

 

 

 

—

 

 

 

—

 

 

 

1,409

 

Index linked U.K. corporate bonds fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17,085

 

 

 

—

 

 

 

—

 

 

 

17,085

 

Index linked U.K. government securities fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,049

 

 

 

—

 

 

 

—

 

 

 

12,049

 

Index linked U.K. long-term government securities fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,924

 

 

 

—

 

 

 

—

 

 

 

14,924

 

Index U.K long-term government securities fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,997

 

 

 

—

 

 

 

—

 

 

 

1,997

 

Total assets

 

$

179,917

 

 

$

2,130

 

 

$

—

 

 

$

55,346

 

 

$

—

 

 

$

—

 

 

$

237,393

 

 

 

 

At September 30, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

United
States

 

 

Other
Countries

 

 

United
States

 

 

Other
Countries

 

 

United
States

 

 

Other
Countries

 

 

Total

 

Asset Category:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,385

 

 

$

149

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,534

 

Mutual funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. corporate bond fund

 

 

103,401

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

103,401

 

U.S. equity large cap fund

 

 

31,136

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,136

 

International equity large cap growth fund

 

 

18,448

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,448

 

Pooled funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japanese equity securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,830

 

 

 

—

 

 

 

—

 

 

 

1,830

 

International equity securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,600

 

 

 

—

 

 

 

—

 

 

 

1,600

 

Japanese fixed income securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,785

 

 

 

—

 

 

 

—

 

 

 

3,785

 

International fixed income securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,287

 

 

 

—

 

 

 

—

 

 

 

1,287

 

Global target return equity/bond fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,719

 

 

 

—

 

 

 

—

 

 

 

8,719

 

Index linked U.K. corporate bonds fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,319

 

 

 

—

 

 

 

—

 

 

 

14,319

 

Index linked U.K. government securities fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,601

 

 

 

—

 

 

 

—

 

 

 

14,601

 

Index linked U.K. long-term government securities fund

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,485

 

 

 

—

 

 

 

—

 

 

 

4,485

 

Total assets

 

$

155,370

 

 

$

149

 

 

$

—

 

 

$

50,626

 

 

$

—

 

 

$

—

 

 

$

206,145

 
Other Postretirement Benefit Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Actuarial Assumptions Used

The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of postretirement benefits were as follows:

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Weighted-average discount rate used to determine benefit obligation

 

 

5.00

%

 

 

6.25

%

 

 

5.70

%

Weighted-average discount rate used to determine net periodic benefit cost

 

 

6.25

 

 

 

5.70

 

 

 

2.80

 
Schedule of Net Periodic Benefit Costs

Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statements of Earnings:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Service cost

 

$

—

 

 

$

1

 

 

$

1

 

Interest cost

 

 

902

 

 

 

904

 

 

 

577

 

Amortization of:

 

 

 

 

 

 

 

 

 

Net gain

 

 

(555

)

 

 

(495

)

 

 

(94

)

Net periodic cost

 

$

347

 

 

$

410

 

 

$

484

 
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

The following table provides a reconciliation of the changes in the accumulated postretirement benefit obligation and fair value of assets for the postretirement benefits:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

Changes in accumulated postretirement benefit obligation:

 

 

 

 

 

 

Accumulated postretirement benefit obligation at beginning of year

 

$

15,336

 

 

$

16,797

 

Service cost

 

 

—

 

 

 

1

 

Interest cost

 

 

902

 

 

 

904

 

Premiums paid by plan participants

 

 

834

 

 

 

873

 

Net actuarial loss (gain)

 

 

597

 

 

 

(682

)

Benefits paid

 

 

(2,466

)

 

 

(2,557

)

Accumulated postretirement benefit obligation at end of year

 

$

15,203

 

 

$

15,336

 

Changes in fair value of plan assets:

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

—

 

 

$

—

 

Contributions by the company

 

 

1,632

 

 

 

1,684

 

Premiums paid by plan participants

 

 

834

 

 

 

873

 

Benefits paid

 

 

(2,466

)

 

 

(2,557

)

Fair value of plan assets at end of year

 

$

—

 

 

$

—

 

Funded status at end of year

 

$

(15,203

)

 

$

(15,336

)
Schedule of Amounts Recognized in Balance Sheets and Accumulated Other Comprehensive (Earnings) Losses

The following tables provide the amounts recognized in the Consolidated Balance Sheets and accumulated other comprehensive (earnings) losses for the postretirement plans:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

Amounts recognized in Consolidated Balance Sheets consist of:

 

 

 

 

 

 

Accrued liabilities

 

$

(1,668

)

 

$

(1,739

)

Other non-current liabilities

 

 

(13,535

)

 

 

(13,597

)

Funded status at end of year

 

$

(15,203

)

 

$

(15,336

)

Amounts recognized in accumulated other comprehensive income consist of:

 

 

 

 

 

 

Unrecognized net prior service cost (benefit)

 

$

—

 

 

$

—

 

Unrecognized net gains

 

 

(5,260

)

 

 

(6,412

)

Total amounts recognized

 

 

(5,260

)

 

 

(6,412

)

Deferred taxes

 

 

1,009

 

 

 

1,292

 

Amounts recognized in accumulated other comprehensive (earnings)

 

$

(4,251

)

 

$

(5,120

)
Schedule of Changes in Plan Assets and Benefit Obligations Recorded in Other Comprehensive (Earnings) Losses

The following table reconciles the changes in accumulated other comprehensive (earnings) losses for the other postretirement benefit plans:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

Beginning of year

 

$

(6,412

)

 

$

(6,225

)

Net loss (gain)

 

 

597

 

 

 

(682

)

Amortization of:

 

 

 

 

 

 

Net gain

 

 

555

 

 

 

495

 

End of year

 

$

(5,260

)

 

$

(6,412

)
Schedule of Health Care Cost Trend Rates

Assumed healthcare cost trend rates at September 30, were as follows:

 

 

2024

 

 

2023

 

Health care cost trend rate assumed for next year

 

 

6.00

%

 

 

6.00

%

Rate to which the cost trend rate is assumed to decline

 

 

 

 

 

 

(the ultimate trend rate)

 

 

5.00

%

 

 

5.00

%

Year that the rate reaches the ultimate trend rate

 

2030

 

 

2030

 

 
Schedule of Future Postretirement Company Contributions

Using expected future service, it is anticipated that the future Company contributions to pay benefits for other postretirement benefit plans, excluding participate contributions, will be as follows:

Year Ending September 30,

 

 

 

2025

 

$

2,519

 

2026

 

 

2,447

 

2027

 

 

2,357

 

2028

 

 

2,267

 

2029

 

 

2,171

 

2030-2034

 

 

9,101

 
United States [Member] | Defined Benefit Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Actuarial Assumptions Used

The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of retirement pension benefits were as follows:

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

United States:

 

 

 

 

 

 

 

 

 

Weighted-average assumptions to determine benefit obligation:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

5.05

%

 

 

6.20

%

 

 

5.70

%

Weighted-average assumptions to determine periodic benefit costs:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

6.20

 

 

 

5.70

 

 

 

3.05

 

Long-term rate of return on plan assets

 

 

6.03

 

 

 

5.53

 

 

 

5.00

 
United Kingdom | Defined Benefit Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Actuarial Assumptions Used

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

United Kingdom:

 

 

 

 

 

 

 

 

 

Weighted-average assumptions to determine benefit obligation:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

5.28

%

 

 

5.85

%

 

 

5.35

%

Rate of compensation increase

 

 

3.40

 

 

 

3.60

 

 

 

4.00

 

Weighted-average assumptions to determine periodic benefit costs:

 

 

 

 

 

 

 

 

 

Discount rate - service cost

 

 

5.91

 

 

 

4.99

 

 

 

2.15

 

Discount rate - interest cost

 

 

5.84

 

 

 

5.71

 

 

 

1.83

 

Rate of compensation increase

 

 

3.60

 

 

 

4.00

 

 

 

4.00

 

Long-term rate of return on plan assets

 

 

4.90

 

 

 

4.80

 

 

 

3.80

 
Japan | Defined Benefit Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Actuarial Assumptions Used

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Japan:

 

 

 

 

 

 

 

 

 

Weighted-average assumptions to determine benefit obligation:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

1.92

%

 

 

2.01

%

 

 

1.60

%

Rate of compensation increase

 

 

3.00

 

 

 

2.00

 

 

 

2.00

 

Weighted-average assumptions to determine periodic benefit costs:

 

 

 

 

 

 

 

 

 

Discount rate - service cost

 

 

2.20

 

 

 

1.78

 

 

 

1.13

 

Discount rate - interest cost

 

 

1.58

 

 

 

1.17

 

 

 

0.65

 

Rate of compensation increase

 

 

2.00

 

 

 

2.00

 

 

 

2.25

 

Long-term rate of return on plan assets

 

 

3.25

 

 

 

2.75

 

 

 

2.00

 
Germany [Member] | Defined Benefit Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Actuarial Assumptions Used

 

 

At September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Germany:

 

 

 

 

 

 

 

 

 

Weighted-average assumptions to determine benefit obligation:

 

 

 

 

 

 

 

 

 

Discount rate

 

 

3.58

%

 

 

4.27

%

 

 

3.97

%

Rate of compensation increase

 

 

2.50

 

 

 

2.50

 

 

 

2.50

 

Weighted-average assumptions to determine periodic benefit costs:

 

 

 

 

 

 

 

 

 

Discount rate - service cost

 

 

4.23

 

 

 

3.95

 

 

 

1.54

 

Discount rate - interest cost

 

 

4.29

 

 

 

3.91

 

 

 

1.06

 

Rate of compensation increase

 

 

2.50

 

 

 

2.50

 

 

 

2.50

 
v3.24.3
Stockholders' Equity (Tables)
 12 Months Ended
Sep. 30, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of Activity in Common Stock and Treasury Stock Share

Activity in common stock and treasury stock shares are as follows:

 

 

Common Stock

 

 

Treasury Stock

 

 

Treasury stock held for deferred compensation

 

Balances as of September 30, 2021

 

 

72,960

 

 

 

(9,702

)

 

 

(167

)

Purchase of treasury stock

 

 

—

 

 

 

(4,123

)

 

 

—

 

Sales of treasury stock

 

 

—

 

 

 

468

 

 

 

—

 

Common shares issued for benefit plans

 

 

—

 

 

 

150

 

 

 

—

 

Purchases of stock by deferred compensation

 

 

—

 

 

 

—

 

 

 

(3

)

Distribution of stock from deferred compensation

 

 

—

 

 

 

—

 

 

 

31

 

Balances as of September 30, 2022

 

 

72,960

 

 

 

(13,207

)

 

 

(139

)

 

 

 

 

 

 

 

 

 

Balances as of September 30, 2022

 

 

72,960

 

 

 

(13,207

)

 

 

(139

)

Purchase of treasury stock

 

 

—

 

 

 

(1,060

)

 

 

—

 

Sales of treasury stock

 

 

—

 

 

 

1,009

 

 

 

—

 

Common shares issued for benefit plans

 

 

—

 

 

 

188

 

 

 

—

 

Purchases of stock by deferred compensation

 

 

—

 

 

 

—

 

 

 

(2

)

Distribution of stock from deferred compensation

 

 

—

 

 

 

—

 

 

 

86

 

Balances as of September 30, 2023

 

 

72,960

 

 

 

(13,070

)

 

 

(55

)

 

 

 

 

 

 

 

 

 

Balances as of September 30, 2023

 

 

72,960

 

 

 

(13,070

)

 

 

(55

)

Purchase of treasury stock

 

 

—

 

 

 

(2,236

)

 

 

—

 

Sales of treasury stock

 

 

—

 

 

 

1,360

 

 

 

—

 

Common shares issued for benefit plans

 

 

—

 

 

 

159

 

 

 

—

 

Purchases of stock by deferred compensation

 

 

—

 

 

 

—

 

 

 

(1

)

Distribution of stock from deferred compensation

 

 

—

 

 

 

—

 

 

 

11

 

Balances as of September 30, 2024

 

 

72,960

 

 

 

(13,787

)

 

 

(45

)
Summary of Activity for RSUs

A summary of the activity for RSUs:

 

 

Number of units

 

 

Weighted-Average Grant Date Fair Value

 

Balance at September 30, 2023

 

 

177

 

 

$

93.46

 

Granted

 

 

178

 

 

 

139.04

 

Vested

 

 

(30

)

 

 

88.97

 

Forfeited

 

 

(7

)

 

 

149.02

 

Balance at September 30, 2024

 

 

318

 

 

$

118.19

 
Stock-based Compensation Expense Recognized

Stock-based compensation expense recognized was as follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Employee stock-based compensation expense

 

$

33,052

 

 

$

23,958

 

 

$

20,109

 
Stock Options [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards

The fair value of options granted is estimated as of the grant date using the Black-Scholes-Merton option-valuation model using the assumptions in the following table. Woodward calculates the expected term, which represents the average period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant.

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Weighted-average exercise price per share

 

$

137.36

 

 

$

84.84

 

 

$

115.3

 

Expected term (years)

 

 

 

6.6

 

-

 

8.7

 

 

 

 

6.6

 

-

 

8.8

 

 

 

 

6.6

 

-

 

8.7

 

Estimated volatility

 

 

 

35.0

%

-

 

37.6

%

 

 

 

34.7

%

-

 

37.6

%

 

 

 

33.8

%

-

 

36.4

%

Estimated dividend yield

 

 

 

0.7

%

-

 

0.7

%

 

 

 

0.7

%

-

 

0.9

%

 

 

 

0.6

%

-

 

0.8

%

Risk-free interest rate

 

 

 

4.2

%

-

 

4.4

%

 

 

 

3.4

%

-

 

4.4

%

 

 

 

1.1

%

-

 

3.5

%
Weighted Average Grant Date Fair Value of Options Granted

The weighted average grant date fair value of options granted follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Weighted-average grant date fair value of options

 

$

58.34

 

 

$

34.19

 

 

$

41.78

 
Summary of Activity for Stock Option Awards

The following is a summary of the activity for stock option awards during the fiscal year ended September 30, 2024:

 

 

Number of options

 

 

Weighted-
Average Exercise
Price Per Share

 

Balance at September 30, 2023

 

 

4,842

 

 

$

80.48

 

Granted

 

 

87

 

 

 

137.36

 

Exercised

 

 

(1,340

)

 

 

69.23

 

Forfeited

 

 

(11

)

 

 

96.82

 

Balance at September 30, 2024

 

 

3,578

 

 

$

86.03

 

 
Changes in Non-vested Stock Options

Changes in non-vested stock options during the fiscal year ended September 30, 2024 were as follows:

 

 

Number of options

 

 

Weighted-
Average Grant
Date Fair Value
Per Share

 

Balance at September 30, 2023

 

 

1,393

 

 

$

33.96

 

Granted

 

 

87

 

 

 

58.34

 

Vested

 

 

(572

)

 

 

32.36

 

Forfeited

 

 

(10

)

 

 

37.76

 

Balance at September 30, 2024

 

 

898

 

 

$

37.30

 
Stock Options Vested, or Expected to Vest and Exercisable

Information about stock options that have vested, or are expected to vest, and are exercisable at September 30, 2024 was as follows:

 

 

Number of options

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Life in Years

 

 

Aggregate
Intrinsic
Value

 

Options outstanding

 

 

3,578

 

 

$

86.03

 

 

 

5.3

 

 

$

305,872

 

Options vested and exercisable

 

 

2,680

 

 

 

82.14

 

 

 

4.5

 

 

 

239,541

 

Options vested and expected to vest

 

 

3,557

 

 

 

85.91

 

 

 

5.2

 

 

 

304,515

 
Other Stock Option Information

Other information follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Total fair value of stock options vested

 

$

18,527

 

 

$

24,388

 

 

$

18,945

 

Total intrinsic value of options exercised

 

 

115,198

 

 

 

67,203

 

 

 

32,709

 

Cash received from exercises of stock options

 

 

89,875

 

 

 

50,749

 

 

 

21,897

 

Excess tax benefit realized from exercise of stock options

 

 

17,939

 

 

 

12,595

 

 

 

6,472

 
Performance Restricted Stock Units [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Schedule of Assumptions to Value PSUs Granted

The fair value of the PSUs for the November 2023 grant was determined based upon a Monte Carlo valuation method. The assumptions used in the Monte Carlo method to value the PSUs granted, which includes the grant date fair value outcome from the Monte Carlo method, were as follows:

 

 

September 30, 2024

 

Expected volatility

 

 

30.2

%

Risk free interest rate

 

 

4.5

%

Expected life

 

3 years

 

Grant date fair value

 

$

146.47

 
Summary of Activity for PSUs

A summary of the activity for PSUs:

 

 

Number of units

 

 

Weighted-Average Grant Date Fair Value

 

Beginning balance

 

 

—

 

 

$

—

 

Granted

 

 

66

 

 

 

146.47

 

Forfeited

 

 

(4

)

 

 

146.47

 

Ending balance

 

 

62

 

 

$

146.47

 
v3.24.3
Commitments and Contingencies (Tables)
 12 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Future Minimum Unconditional Purchase Obligations Future minimum unconditional purchase obligations are as follows:

Year Ending September 30:

 

 

 

2025

 

$

676,009

 

2026

 

 

179,213

 

2027

 

 

70,212

 

2028

 

 

1,542

 

2029

 

 

5

 

Thereafter

 

 

88

 

Total

 

$

927,069

 
v3.24.3
Segment Information (Tables)
 12 Months Ended
Sep. 30, 2024
Entity Wide Revenue Major Customer [Line Items]  
Summary of Consolidated Net Sales and Earnings by Segment

A summary of consolidated net sales and earnings by segment follows:

 

 

Year Ended September 30,

 

 

 

2024

 

 

2023

 

 

2022

 

Segment external net sales:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

2,028,618

 

 

$

1,768,103

 

 

$

1,519,322

 

Industrial

 

 

1,295,631

 

 

 

1,146,463

 

 

 

863,468

 

Total consolidated net sales

 

$

3,324,249

 

 

$

2,914,566

 

 

$

2,382,790

 

Segment earnings:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

385,360

 

 

$

290,104

 

 

$

230,933

 

Industrial

 

 

229,857

 

 

 

161,622

 

 

 

82,788

 

Nonsegment expenses

 

 

(119,745

)

 

 

(130,811

)

 

 

(81,092

)

Interest Expense, net

 

 

(41,501

)

 

 

(45,147

)

 

 

(32,731

)

Consolidated earnings before income taxes

 

$

453,971

 

 

$

275,768

 

 

$

199,898

 
Summary of Consolidated Total Assets, Depreciation and Amortization, and Capital Expenditures by Segment

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,

 

 

 

2024

 

 

2023

 

 

2022

 

Segment assets:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

1,936,507

 

 

$

1,829,410

 

 

$

1,773,854

 

Industrial

 

 

1,509,495

 

 

 

1,490,341

 

 

 

1,380,446

 

Unallocated corporate property, plant and equipment, net

 

 

120,946

 

 

 

104,962

 

 

 

111,760

 

Other unallocated assets

 

 

801,967

 

 

 

585,490

 

 

 

540,386

 

Consolidated total assets

 

$

4,368,915

 

 

$

4,010,203

 

 

$

3,806,446

 

 

 

 

 

 

 

 

 

 

Segment depreciation and amortization:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

55,305

 

 

$

59,880

 

 

$

60,176

 

Industrial

 

 

49,779

 

 

 

51,167

 

 

 

50,584

 

Unallocated corporate amounts

 

 

11,086

 

 

 

8,696

 

 

 

9,868

 

Consolidated depreciation and amortization

 

$

116,170

 

 

$

119,743

 

 

$

120,628

 

 

 

 

 

 

 

 

 

 

Segment capital expenditures:

 

 

 

 

 

 

 

 

 

Aerospace

 

$

55,989

 

 

$

56,913

 

 

$

23,253

 

Industrial

 

 

41,930

 

 

 

21,855

 

 

 

12,399

 

Unallocated corporate amounts

 

 

(1,639

)

 

 

(2,268

)

 

 

17,216

 

Consolidated capital expenditures

 

$

96,280

 

 

$

76,500

 

 

$

52,868

 
U.S. Government Related [Member]  
Entity Wide Revenue Major Customer [Line Items]  
U.S. Government Related Sales by Segment

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, 2024

 

 

 

 

 

 

 

 

 

Aerospace

 

$

107,978

 

 

$

443,370

 

 

$

551,348

 

Industrial

 

 

9,039

 

 

 

10,273

 

 

 

19,312

 

Total net external sales

 

$

117,017

 

 

$

453,643

 

 

$

570,660

 

Percentage of total net sales

 

 

3

%

 

 

14

%

 

 

17

%

 

 

 

 

 

 

 

 

 

Fiscal year ended September 30, 2023

 

 

 

 

 

 

 

 

 

Aerospace

 

$

99,848

 

 

$

363,835

 

 

$

463,683

 

Industrial

 

 

7,524

 

 

 

14,840

 

 

 

22,364

 

Total net external sales

 

$

107,372

 

 

$

378,675

 

 

$

486,047

 

Percentage of total net sales

 

 

4

%

 

 

13

%

 

 

17

%

 

 

 

 

 

 

 

 

 

Fiscal year ended September 30, 2022

 

 

 

 

 

 

 

 

 

Aerospace

 

$

93,266

 

 

$

433,646

 

 

$

526,912

 

Industrial

 

 

4,759

 

 

 

6,052

 

 

 

10,811

 

Total net external sales

 

$

98,025

 

 

$

439,698

 

 

$

537,723

 

Percentage of total net sales

 

 

4

%

 

 

19

%

 

 

23

%
v3.24.3
Operations and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($)
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]      
Selling, general, and administrative expenses include net foreign currency transaction gain (loss) $ 8,369,000 $ (1,020,000) $ 1,450,000
Additional asset impairment charges 0 0 0
Additional asset impairment charges, intangible assets 0 0 $ 0
Increase in cash provided by operating activities as result of factoring activities $ 1,398,000 $ 26,273,000  
v3.24.3
Operations and Summary of Significant Accounting Policies (Schedule of Property, Plant and Equipment Useful Lives) (Details)
Sep. 30, 2024
Land Improvements [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 10 years
Land Improvements [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 20 years
Building and Building Improvements [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 10 years
Building and Building Improvements [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 40 years
Leasehold Improvements [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 1 year
Leasehold Improvements [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 10 years
Machinery and Production Equipment [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Machinery and Production Equipment [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 25 years
Computer Equipment and Software [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Computer Equipment and Software [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 10 years
Office furniture and equipment [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Office furniture and equipment [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 15 years
Other [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Other [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Computer Equipment and Software, Excluding ERP system [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Computer Equipment and Software, Excluding ERP system [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Enterprise Resource Planning system [Member]  
Property Plant And Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 15 years
v3.24.3
Operations and Summary of Significant Accounting Policies (Schedule of Finite-Lived Intangible Assets Useful Lives) (Details)
Sep. 30, 2024
Customer Relationships And Contracts [Member] | Minimum [Member]  
Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 11 years
Customer Relationships And Contracts [Member] | Maximum [Member]  
Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 30 years
Intellectual Property [Member]  
Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 17 years
Process Technology [Member] | Minimum [Member]  
Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 10 years
Process Technology [Member] | Maximum [Member]  
Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 30 years
Other [Member]  
Finite Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 1 year
v3.24.3
Revenue - Revenue Derived from Product Sales (Details) - Net Sales [Member] - Product Concentration Risk [Member]
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Manufacture [Member]      
Disaggregation Of Revenue [Line Items]      
Percentage of attributable to revenue 83.00% 84.00% 84.00%
MRO [Member]      
Disaggregation Of Revenue [Line Items]      
Percentage of attributable to revenue 15.00% 14.00% 14.00%
Service [Member]      
Disaggregation Of Revenue [Line Items]      
Percentage of attributable to revenue 2.00% 2.00% 2.00%
v3.24.3
Revenue (Schedule of Revenue Recognition Time) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Disaggregation Of Revenue [Line Items]      
Net sales $ 3,324,249 $ 2,914,566 $ 2,382,790
Aerospace [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 2,028,618 1,768,103 1,519,322
Industrial [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,295,631 1,146,463 863,468
Point In Time [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,634,522 1,456,736 1,102,970
Point In Time [Member] | Aerospace [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 853,728 748,278 593,233
Point In Time [Member] | Industrial [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 780,794 708,458 509,737
Over Time [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,689,727 1,457,830 1,279,820
Over Time [Member] | Aerospace [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales 1,174,890 1,019,825 926,089
Over Time [Member] | Industrial [Member]      
Disaggregation Of Revenue [Line Items]      
Net sales $ 514,837 $ 438,005 $ 353,731
v3.24.3
Revenue (Summary of Amounts Recognized Related to Changes in Estimated Total Lifetime Sales for Material Rights and Costs to Fulfill Contracts With Customers) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Change in Contract with Customer, Asset and Liability [Abstract]      
Revenue $ 17,154 $ 1,460 $ 1,514
Cost of goods sold $ 15,486 $ 1,736 $ 667
v3.24.3
Revenue (Summary of Amounts Recognized Related to Amortization of Costs to Fulfill Contracts and Contract Liabilities Not Related to Changes in Estimate) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Change in Contract with Customer, Asset and Liability [Abstract]      
Revenue $ 7,230 $ 6,741 $ 4,107
Cost of goods sold $ 3,112 $ 5,559 $ 3,077
v3.24.3
Revenue (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Capitalized cost $ 185,102 $ 180,228
Billed accounts receivable due within 60 days  
Noncurrent unbilled receivables $ 11,237 $ 7,332
Percent of total billed and unbilled accounts receivable from U.S. Government 10.00% 10.00%
Revenue from contract liabilities $ 44,398 $ 25,190
v3.24.3
Revenue (Schedule of Accounts Receivable) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Contract With Customer Asset [Line Items]    
Total billed receivables $ 457,234 $ 485,227
Current unbilled receivables (contract assets) 320,570 270,479
Total accounts receivable 777,804 755,706
Less: Allowance for uncollectible amounts (7,738) (5,847)
Total accounts receivable, net 770,066 749,859
Trade Accounts Receivable [Member]    
Contract With Customer Asset [Line Items]    
Billed receivables 455,831 434,287
Other (Chinese Financial Institutions) [Member]    
Contract With Customer Asset [Line Items]    
Billed receivables $ 1,403 $ 50,940
v3.24.3
Revenue (Schedule of Uncollectible Amounts And Change in Expected Allowance for Credit Losses for Trade Accounts Receivable and Unbilled Receivables) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]      
Balance, beginning $ 5,847 $ 3,922 $ 3,664
Changes in estimates 3,219 7,211 447
Write-offs (586) (5,305) (46)
Other [1] (742) 19 (143)
Balance, ending $ 7,738 $ 5,847 $ 3,922
[1] Includes effects of foreign exchange rate changes during the period.
v3.24.3
Revenue (Schedule of Contract Liability) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Contract With Customer Liability [Line Items]    
Current contract liabilities $ 56,791 $ 33,748
Noncurrent contract liabilities 424,609 414,657
Deferred Revenue from Material Rights from JV Formation [Member]    
Contract With Customer Liability [Line Items]    
Current contract liabilities 6,580 6,147
Noncurrent contract liabilities 232,164 233,997
Deferred Revenue From Advance Invoicing And/Or Prepayments From Customers [Member]    
Contract With Customer Liability [Line Items]    
Current contract liabilities 23,706 6,868
Noncurrent contract liabilities 6,437 2,196
Liability Related To Customer Supplied Inventory [Member]    
Contract With Customer Liability [Line Items]    
Current contract liabilities 20,563 14,543
Deferred Revenue From Material Rights Related To Engineering And Development Funding [Member]    
Contract With Customer Liability [Line Items]    
Current contract liabilities 5,942 6,190
Noncurrent contract liabilities $ 186,008 $ 178,464
v3.24.3
Revenue (Schedule of Revenue Recognized Related to Noncash Consideration) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Contract With Customer Noncash Consideration [Line Items]      
Revenue recognized related to noncash consideration $ 66,297 $ 52,268 $ 65,701
Aerospace [Member]      
Contract With Customer Noncash Consideration [Line Items]      
Revenue recognized related to noncash consideration 61,323 50,329 63,358
Industrial [Member]      
Contract With Customer Noncash Consideration [Line Items]      
Revenue recognized related to noncash consideration $ 4,974 $ 1,939 $ 2,343
v3.24.3
Revenue (Narrative - Performance Obligations) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Remaining performance obligation amount $ 2,932,793 $ 2,325,533
Material Rights [Member]    
Remaining performance obligation amount $ 509,366  
v3.24.3
Revenue (Narrative - Performance Obligations) (Details1) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Remaining performance obligation amount $ 2,932,793 $ 2,325,533
Material Rights [Member]    
Remaining performance obligation amount $ 509,366  
Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01    
Period of remaining performance obligation, expected timing of satisfaction 1 year  
Remaining performance obligation amount $ 14,788  
Remaining performance obligation, expected timing of satisfaction, year 2025  
Maximum [Member] | Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01    
Period of remaining performance obligation, expected timing of satisfaction 40 years  
Aerospace [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01    
Period of remaining performance obligation, expected timing of satisfaction 2 years  
v3.24.3
Revenue (Schedule of Disaggregation of Revenue) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Disaggregation Of Revenue [Line Items]      
Total net sales $ 3,324,249 $ 2,914,566 $ 2,382,790
United States [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 1,698,256 1,538,075 1,311,600
Germany [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 269,358 273,842 232,056
Europe, excluding Germany [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 499,938 436,979 363,514
China [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 390,044 243,486 136,379
Asia, excluding China [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 222,706 200,029 152,189
Other Countries [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 243,947 222,155 187,052
Aerospace [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 2,028,618 1,768,103 1,519,322
Aerospace [Member] | United States [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 1,404,223 1,254,954 1,105,860
Aerospace [Member] | Germany [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 72,583 80,450 57,840
Aerospace [Member] | Europe, excluding Germany [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 202,421 163,222 128,719
Aerospace [Member] | China [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 96,136 56,773 49,407
Aerospace [Member] | Asia, excluding China [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 59,103 37,107 23,334
Aerospace [Member] | Other Countries [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 194,152 175,597 154,162
Aerospace [Member] | Commercial OEM [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 738,394 651,275 499,438
Aerospace [Member] | Commercial Aftermarket [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 640,823 547,625 420,881
Aerospace [Member] | Defense OEM [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 406,810 368,653 422,016
Aerospace [Member] | Defense Aftermarket [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 242,591 200,550 176,987
Industrial [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 1,295,631 1,146,463 863,468
Industrial [Member] | United States [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 294,033 283,121 205,740
Industrial [Member] | Germany [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 196,775 193,392 174,216
Industrial [Member] | Europe, excluding Germany [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 297,517 273,757 234,795
Industrial [Member] | China [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 293,908 186,713 86,972
Industrial [Member] | Asia, excluding China [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 163,603 162,922 128,855
Industrial [Member] | Other Countries [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 49,795 46,558 32,890
Industrial [Member] | Power Generation [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 423,872 382,536 317,026
Industrial [Member] | Transportation [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales 642,174 527,498 354,682
Industrial [Member] | Oil and Gas [Member]      
Disaggregation Of Revenue [Line Items]      
Total net sales $ 229,585 $ 236,429 $ 191,760
v3.24.3
Earnings Per Share (Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Numerator:      
Net earnings $ 372,971 $ 232,368 $ 171,698
Denominator:      
Basic shares outstanding 60,076 59,908 61,517
Dilutive effect of stock options; restricted and performance stock units 2,008 1,574 1,737
Diluted shares outstanding 62,084 61,482 63,254
Income per common share:      
Basic earnings per share $ 6.21 $ 3.88 $ 2.79
Diluted earnings per share $ 6.01 $ 3.78 $ 2.71
v3.24.3
Earnings Per Share (Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share) (Details) - Stock Options [Member] - $ / shares
shares in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Options 63 561 1,019
Weighted-average option price $ 135.26 $ 114.88 $ 110.71
v3.24.3
Earnings Per Share (Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding) (Details) - shares
shares in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Earnings Per Share [Abstract]      
Weighted-average treasury stock shares held for deferred compensation obligations 51 88 151
v3.24.3
Leases (Lease-Related Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Assets:    
Operating lease assets $ 27,135 $ 24,680
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets
Finance lease assets $ 2,516 $ 3,337
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property, plant and equipment, net Property, plant and equipment, net
Total lease assets $ 29,651 $ 28,017
Current liabilities:    
Operating lease liabilities $ 5,029 $ 4,594
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities
Finance lease liabilities $ 719 $ 817
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Current portion of long-term debt Current portion of long-term debt
Noncurrent liabilities:    
Operating lease liabilities $ 22,670 $ 20,685
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Finance lease liabilities $ 2,017 $ 2,733
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Long-term debt, less current portion Long-term debt, less current portion
Total lease liabilities $ 30,435 $ 28,829
v3.24.3
Leases (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Lessee Lease Description [Line Items]      
Revenue included embedded operating leases $ 5,486 $ 5,030 $ 5,528
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] Net sales Net sales Net sales
v3.24.3
Leases (Supplemental Lease-Related Information) (Details)
Sep. 30, 2024
Sep. 30, 2023
Leases [Abstract]    
Weighted average remaining lease term, Operating leases 8 years 1 month 6 days 8 years 7 months 6 days
Weighted average remaining lease term, Finance leases 3 years 9 months 18 days 4 years 7 months 6 days
Weighted average discount rate, Operating leases 4.40% 4.00%
Weighted average discount rate, Finance leases 4.60% 4.60%
v3.24.3
Leases (Lease-Related Expenses) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Leases [Abstract]      
Operating lease expense $ 6,804 $ 6,213 $ 6,335
Amortization of financing lease assets 820 914 454
Interest on financing lease liabilities 138 157 51
Variable lease expense 1,299 917 929
Short-term lease expense 164 196 190
Sublease income [1]     (192)
Total lease expense $ 9,225 $ 8,397 $ 7,767
[1] Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois, each of which expired during fiscal year 2022.
v3.24.3
Leases (Lease-Related Supplemental Cash Flow Information) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Leases [Abstract]      
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 5,375 $ 5,151 $ 5,303
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases 138 157 51
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases 818 779 796
Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases $ 6,117 2,230 14,678
Right-of-use assets obtained in exchange for recorded lease obligations: Finance leases   $ 48 $ 4,046
v3.24.3
Leases (Maturities of Lease Liabilities) (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Year Ending September 30:  
Operating Leases, 2025 $ 5,997
Operating Leases, 2026 5,255
Operating Leases, 2027 4,338
Operating Leases, 2028 3,962
Operating Leases, 2029 3,219
Operating Leases, Thereafter 10,241
Operating Leases, Total lease payments 33,012
Operating Leases, Less: imputed interest (5,313)
Operating lease liabilities 27,699
Year Ending September 30:  
Finance Leases, 2025 823
Finance Leases, 2026 824
Finance Leases, 2027 822
Finance Leases, 2028 234
Finance Leases, 2029 182
Finance Leases, Thereafter 75
Finance Leases, Total lease payments 2,960
Finance Leases, Less: imputed interest (224)
Finance Leases, Total lease obigations $ 2,736
v3.24.3
Leases (Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Leases [Abstract]    
Property, plant, and equipment $ 48,495 $ 45,766
Less accumulated depreciation (32,994) (28,128)
Property, plant, and equipment, net $ 15,501 $ 17,638
v3.24.3
Joint Venture (Unamortized Deferred Revenue from JV) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Schedule Of Equity Method Investments [Line Items]    
Accrued liabilities $ 6,580 $ 6,147
Other liabilities $ 232,164 $ 233,997
v3.24.3
Joint Venture (Narrative) (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Schedule Of Equity Method Investments [Line Items]          
Revenue from contract liabilities     $ 44,398,000 $ 25,190,000  
Cost of goods sold from contract assets     $ 2,447,770,000 2,236,983,000 $ 1,857,485,000
Woodward and General Electric Joint Venture [Member]          
Schedule Of Equity Method Investments [Line Items]          
Ownership interest, joint venture     50.00%    
Cash received annually from formation of joint venture $ 4,894,000 $ 4,894,000 $ 4,894,000    
Revenue from contract liabilities     812,000 870,000  
Cost of goods sold from contract assets     1,236,000 870,000  
Reduction in contract liability and costs to fulfill contract     9,680,000 0  
Reduction in costs to fulfill a contract related to the termination     9,680,000 0  
Woodward and General Electric Joint Venture [Member] | Other Liabilities [Member]          
Schedule Of Equity Method Investments [Line Items]          
Contract liabilities     78,226,000 84,059,000  
Woodward and General Electric Joint Venture [Member] | Other Assets [Member]          
Schedule Of Equity Method Investments [Line Items]          
Costs to fulfill a contract     78,226,000 84,059,000  
Woodward and General Electric Joint Venture [Member] | Sales [Member]          
Schedule Of Equity Method Investments [Line Items]          
Amortization of deferred income recognized as an increase to sales     6,294,000 5,020,000 3,633,000
Reduction to sales related to royalties owed to joint venture     $ 63,794,000 $ 49,624,000 $ 28,054,000
v3.24.3
Joint Venture (Other Income Related JV) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Schedule Of Equity Method Investments [Line Items]      
Other income $ 41,191 $ 36,846 $ 18,193
Woodward and General Electric Joint Venture [Member]      
Schedule Of Equity Method Investments [Line Items]      
Other income $ 41,191 $ 36,846 $ 18,193
v3.24.3
Joint Venture (Cash Distribution from JV) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Woodward and General Electric Joint Venture [Member]      
Schedule Of Equity Method Investments [Line Items]      
Cash distributions $ 38,000 $ 29,000 $ 17,000
v3.24.3
Joint Venture (Net Sales to the JV) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Woodward and General Electric Joint Venture [Member] | Related Party [Member]      
Schedule Of Equity Method Investments [Line Items]      
Net sales [1] $ 80,708 $ 47,607 $ 28,100
[1] Net sales include a reduction of $63,794 for the fiscal year ended September 30, 2024, $49,624 for the fiscal year ended September 30, 2023, and $28,054 for the fiscal year ended September 30, 2022 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers.
v3.24.3
Joint Venture (Accounts Receivable, Accounts Payable, and Other Assets Related to JV) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Schedule Of Equity Method Investments [Line Items]    
Accounts receivable $ 457,234 $ 485,227
Accounts payable 287,457 234,328
Woodward and General Electric Joint Venture [Member]    
Schedule Of Equity Method Investments [Line Items]    
Other assets 19,219 16,028
Woodward and General Electric Joint Venture [Member] | Related Party [Member]    
Schedule Of Equity Method Investments [Line Items]    
Accounts receivable 5,205 3,666
Accounts payable $ 11,378 $ 6,276
v3.24.3
Joint Venture (Contract Liabilities and Costs to Fulfill a Contract) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Other Liabilities [Member]    
Schedule of Equity Method Investments [Line Items]    
Contract liabilities $ 78,226 $ 84,059
Other Assets [Member]    
Schedule of Equity Method Investments [Line Items]    
Costs to fulfill a contract $ 78,226 $ 84,059
v3.24.3
Financial Instruments and Fair Value Measurements (Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Financial assets:    
Total financial assets $ 53,910 $ 58,862
Financial liabilities:    
Total financial liabilities 12,004  
Investments in Banks and Financial Institutions [Member]    
Financial assets:    
Investments in term deposits with foreign banks 23,128 28,560
Equity Securities [Member]    
Financial assets:    
Equity securities 30,782 24,913
Cross Currency Interest Rate Swaps [Member]    
Financial assets:    
Cross currency interest rate swaps   5,389
Financial liabilities:    
Cross currency interest rate swaps 12,004  
Level 1 [Member]    
Financial assets:    
Total financial assets 53,910 53,473
Level 1 [Member] | Investments in Banks and Financial Institutions [Member]    
Financial assets:    
Investments in term deposits with foreign banks 23,128 28,560
Level 1 [Member] | Equity Securities [Member]    
Financial assets:    
Equity securities 30,782 24,913
Level 2 [Member]    
Financial assets:    
Total financial assets   5,389
Financial liabilities:    
Total financial liabilities 12,004  
Level 2 [Member] | Cross Currency Interest Rate Swaps [Member]    
Financial assets:    
Cross currency interest rate swaps   $ 5,389
Financial liabilities:    
Cross currency interest rate swaps $ 12,004  
v3.24.3
Financial Instruments and Fair Value Measurements (Narrative) (Details) - Measurement Input, Discount Rate [Member]
Sep. 30, 2024
Sep. 30, 2023
Long-Term Debt [Member] | Weighted Average [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Interest rate used to measure long-term debt 4.5 5.9
Long Term Notes Receivable from Municipalities [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Interest rate used to measure municipal notes 2.7 3.6
Investments in Short-Term Time Deposits [Member]    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]    
Interest rate used to measure short-term time deposits 6.8 6.8
v3.24.3
Financial Instruments and Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - Level 2 [Member] - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
ASSETS    
Investments in short-term time deposits, Estimated Fair Value $ 3,064 $ 6,095
Liabilities:    
Long-term debt, Estimated Fair Value 634,071 661,507
Investments in short-term time deposits, Carrying Cost 3,064 6,107
Long-term debt, Carrying Cost 656,360 722,671
Long Term Notes Receivable from Municipalities [Member]    
ASSETS    
Notes receivable, Estimated Fair Value 6,961 7,794
Liabilities:    
Notes receivable, Carrying Cost $ 6,514 $ 7,688
v3.24.3
Derivative Instruments and Hedging Activities (Narrative) (Details)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
May 31, 2020
USD ($)
Swap
Loan
Sep. 23, 2016
EUR (€)
Derivative Instruments Gain Loss [Line Items]          
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings $ (23,093) $ (33,224) $ 68,880    
Remaining unrecognized gains (losses) associated with derivative instruments included in AOCI $ (5,160) (9,701)      
2016 Note Purchase Agreements [Member]          
Derivative Instruments Gain Loss [Line Items]          
Issuance date Sep. 23, 2016        
Face amount | €         € 160,000,000
Series M Notes [Member]          
Derivative Instruments Gain Loss [Line Items]          
Face amount | €         € 40,000,000
Maturity date Sep. 23, 2026        
Gain (Loss) on foreign currency transaction designated as a hedge of a net investment in a foreign subsidiary $ (2,381) (3,090) 7,206    
2020 Fixed-Rate Cross-Currency Swaps [Member]          
Derivative Instruments Gain Loss [Line Items]          
Derivative, notional amount 400,000     $ 400,000  
2020 Fixed-Rate Cross-Currency Swaps [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member]          
Derivative Instruments Gain Loss [Line Items]          
Derivative, number of instruments | Swap       5  
2020 Floating-Rate Cross-Currency Swap [Member]          
Derivative Instruments Gain Loss [Line Items]          
Derivative, notional amount       $ 45,000  
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Cash Flow Hedging          
Derivative Instruments Gain Loss [Line Items]          
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings $ (23,093) $ (32,285) $ 66,036    
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument | Cash Flow Hedging          
Derivative Instruments Gain Loss [Line Items]          
Derivative, number of instruments | Loan       5  
v3.24.3
Derivative Instruments and Hedging Activities (Impact of Derivative Instruments on Earnings) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Derivative Instruments Gain Loss [Line Items]      
Amount of (Income) Expense Recognized in Earnings on Derivative $ 23,093 $ 33,224 $ (68,880)
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative 18,551 36,587 (89,048)
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings 23,093 33,224 (68,880)
Floating-Rate Cross Currency Interest Rate Contract [Member] | Derivatives in Fair Value Hedging Relationships [Member]      
Derivative Instruments Gain Loss [Line Items]      
Amount of (Income) Expense Recognized in Earnings on Derivative $ 0 $ 939 $ (2,844)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative $ 0 $ 875 $ (2,854)
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings $ 0 $ 939 $ (2,844)
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Cash Flow Hedging      
Derivative Instruments Gain Loss [Line Items]      
Amount of (Income) Expense Recognized in Earnings on Derivative $ 23,093 $ 32,285 $ (66,036)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative $ 18,551 $ 35,712 $ (86,194)
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings $ 23,093 $ 32,285 $ (66,036)
v3.24.3
Supplemental Statement of Cash Flows Information (Schedule of Supplemental Statement of Cash Flows Information) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Supplemental Cash Flow Information [Abstract]      
Interest paid $ 36,700 $ 35,306 $ 27,435
Income taxes paid 152,049 92,509 29,560
Income tax refunds received 6,521 3,661 7,481
Non-cash activities:      
Purchases of property, plant and equipment on account 22,056 11,276 6,452
Common shares issued from treasury to settle benefit obligations $ 21,889 $ 19,466 $ 17,132
v3.24.3
Acquisitions (Narrative) (Details) - P M Controls [Member]
$ in Thousands
 1 Months Ended
Aug. 31, 2022
USD ($)
Business Acquisition [Line Items]  
Total cash consideration $ 22,890
P M Agreements [Member]  
Business Acquisition [Line Items]  
Total cash consideration $ 21,421
v3.24.3
Acquisitions (Schedule of Purchase Price Consideration) (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Aug. 31, 2022
Sep. 30, 2023
Sep. 30, 2022
Business Acquisition [Line Items]      
Total purchase price   $ (878) $ 21,549
P M Controls [Member]      
Business Acquisition [Line Items]      
Cash paid to Sellers $ 22,890    
Working capital adjustment (878)    
Less acquired cash and restricted cash (1,341)    
Plus settlement of pre-existing relationships 750    
Total purchase price $ 21,421    
v3.24.3
Inventories (Schedule of Inventories) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Inventory, Net [Abstract]    
Raw materials $ 161,734 $ 133,699
Work in progress 147,676 127,438
Component parts [1] 376,456 327,522
Finished goods 91,787 74,594
Customer supplied inventory 20,563 14,543
On-hand inventory for which control has transferred to the customer (189,124) (159,953)
Inventory, net $ 609,092 $ 517,843
[1] Component parts include items that can be sold separately as finished goods or included in the manufacture of other products.
v3.24.3
Property, Plant, and Equipment (Schedule of Property Plant and Equipment, Net) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross $ 1,830,959 $ 1,745,203
Less accumulated depreciation (890,244) (832,109)
Property, plant, and equipment, net 940,715 913,094
Land and Land Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 91,105 89,352
Building and Building Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 599,897 589,735
Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 22,022 21,079
Machinery and Production Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 849,595 807,244
Computer Equipment and Software [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 120,185 120,290
Office Furniture and Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 42,873 41,943
Other [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross 33,392 20,073
Construction in Progress [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment, gross $ 71,890 $ 55,487
v3.24.3
Property, Plant, and Equipment (Schedule of Depreciation Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Property, Plant and Equipment, Net [Abstract]      
Depreciation expense $ 82,578 $ 82,154 $ 83,019
v3.24.3
Goodwill (Schedule of Goodwill) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Goodwill [Line Items]    
Goodwill, Beginning Balance $ 791,468 $ 772,559
Effects of Foreign Currency Translation 15,175 18,909
Goodwill, Ending Balance 806,643 791,468
Aerospace [Member]    
Goodwill [Line Items]    
Goodwill, Beginning Balance 455,423 455,423
Goodwill, Ending Balance 455,423 455,423
Industrial [Member]    
Goodwill [Line Items]    
Goodwill, Beginning Balance 336,045 317,136
Effects of Foreign Currency Translation 15,175 18,909
Goodwill, Ending Balance $ 351,220 $ 336,045
v3.24.3
Goodwill (Narrative) (Details) - USD ($)
$ in Thousands
Jul. 31, 2024
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Goodwill [Line Items]        
Goodwill   $ 806,643 $ 791,468 $ 772,559
Assumed annual compound growth rate after five years 5.07%      
Minimum [Member]        
Goodwill [Line Items]        
Weighted average cost of capital assumption 10.31%      
Maximum [Member]        
Goodwill [Line Items]        
Weighted average cost of capital assumption 10.33%      
Industrial [Member]        
Goodwill [Line Items]        
Goodwill   $ 351,220 $ 336,045 $ 317,136
v3.24.3
Intangible Assets, Net (Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Finite-Lived Intangible Assets [Line Items]    
Accumulated Amortization of Finite-Lived Intangible $ (440,603) $ (401,150)
Net Carrying Amount - Finite-Lived Intangible 375,668  
Intangible Assets, Gross, Total 881,022 853,513
Intangible Assets, Net, Total 440,419 452,363
Customer Relationships And Contracts [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value - Finite-Lived Intangible 680,713 660,487
Accumulated Amortization of Finite-Lived Intangible (360,543) (326,227)
Net Carrying Amount - Finite-Lived Intangible 320,170 334,260
Intellectual Property [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value - Finite-Lived Intangible 3,139 3,139
Accumulated Amortization of Finite-Lived Intangible (3,139) (3,139)
Process Technology [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value - Finite-Lived Intangible 131,827 128,026
Accumulated Amortization of Finite-Lived Intangible (76,329) (71,260)
Net Carrying Amount - Finite-Lived Intangible 55,498 56,766
Trade Name [Member]    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-Lived Intangible Assets 64,751 61,307
Intangible Assets, Net, Total 64,751 61,307
Other [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value - Finite-Lived Intangible 592 554
Accumulated Amortization of Finite-Lived Intangible (592) (524)
Net Carrying Amount - Finite-Lived Intangible   30
Aerospace [Member]    
Finite-Lived Intangible Assets [Line Items]    
Accumulated Amortization of Finite-Lived Intangible (286,498) (275,694)
Intangible Assets, Gross, Total 326,253 326,253
Intangible Assets, Net, Total 39,755 50,559
Aerospace [Member] | Customer Relationships And Contracts [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value - Finite-Lived Intangible 281,683 281,683
Accumulated Amortization of Finite-Lived Intangible (246,152) (236,143)
Net Carrying Amount - Finite-Lived Intangible 35,531 45,540
Aerospace [Member] | Process Technology [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value - Finite-Lived Intangible 44,570 44,570
Accumulated Amortization of Finite-Lived Intangible (40,346) (39,551)
Net Carrying Amount - Finite-Lived Intangible 4,224 5,019
Industrial [Member]    
Finite-Lived Intangible Assets [Line Items]    
Accumulated Amortization of Finite-Lived Intangible (154,105) (125,456)
Intangible Assets, Gross, Total 554,769 527,260
Intangible Assets, Net, Total 400,664 401,804
Industrial [Member] | Customer Relationships And Contracts [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value - Finite-Lived Intangible 399,030 378,804
Accumulated Amortization of Finite-Lived Intangible (114,391) (90,084)
Net Carrying Amount - Finite-Lived Intangible 284,639 288,720
Industrial [Member] | Intellectual Property [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value - Finite-Lived Intangible 3,139 3,139
Accumulated Amortization of Finite-Lived Intangible (3,139) (3,139)
Industrial [Member] | Process Technology [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value - Finite-Lived Intangible 87,257 83,456
Accumulated Amortization of Finite-Lived Intangible (35,983) (31,709)
Net Carrying Amount - Finite-Lived Intangible 51,274 51,747
Industrial [Member] | Trade Name [Member]    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-Lived Intangible Assets 64,751 61,307
Intangible Assets, Net, Total 64,751 61,307
Industrial [Member] | Other [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value - Finite-Lived Intangible 592 554
Accumulated Amortization of Finite-Lived Intangible $ (592) (524)
Net Carrying Amount - Finite-Lived Intangible   $ 30
v3.24.3
Intangible Assets, Net (Narrative) (Details)
$ in Thousands
Jul. 31, 2024
USD ($)
Intangible Assets, Net [Line Items]  
Weighted average cost of capital assumption 10.20%
Assumed annual compound growth rate after five years 5.07%
Assumed annual compound growth rate period 5 years
Disposal Group [Member]  
Intangible Assets, Net [Line Items]  
Impairment of intangible assets, Indefinite-lived $ 0
v3.24.3
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets Amortization Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]      
Amortization expense $ 33,592 $ 37,589 $ 37,609
v3.24.3
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
2025 $ 28,360
2026 28,350
2027 28,297
2028 27,704
2029 26,375
Thereafter 236,582
Net Carrying Amount - Finite-Lived Intangible $ 375,668
v3.24.3
Credit Facilities, Short-term Borrowings and Long-term Debt (Short-term Borrowings and Availability Under Various Short-term Credit Facilities) (Details)
Sep. 30, 2024
USD ($)
Line Of Credit Facility [Line Items]  
Total availability $ 1,025,701,000
Outstanding letters of credit and guarantees (8,167,000)
Banker acceptance notes issued (5,589,000)
Outstanding borrowings (217,000,000)
Remaining availability 794,945,000
Revolving Credit Facility [Member]  
Line Of Credit Facility [Line Items]  
Total availability 1,000,000,000
Outstanding letters of credit and guarantees (7,864,000)
Outstanding borrowings (217,000,000)
Remaining availability 775,136,000
Foreign Lines of Credit and Overdraft Facilities [Member]  
Line Of Credit Facility [Line Items]  
Total availability 25,604,000
Outstanding letters of credit and guarantees (244,000)
Banker acceptance notes issued (5,589,000)
Remaining availability 19,771,000
Foreign Performance Guarantee Facilities [Member]  
Line Of Credit Facility [Line Items]  
Total availability 97,000
Outstanding letters of credit and guarantees (59,000)
Remaining availability $ 38,000
v3.24.3
Credit Facilities, Short-term Borrowings and Long-term Debt (Narrative) (Details)
 12 Months Ended
Nov. 15, 2023
USD ($)
Oct. 01, 2013
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
May 31, 2018
USD ($)
Sep. 23, 2016
EUR (€)
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity     $ 1,025,701,000        
Outstanding borrowings     217,000,000        
Short-term debt     217,000,000 $ 0      
Amortization of debt financing costs recognized as interest expense     929,000 963,000 $ 917,000    
Unamortized debt issuance costs     $ 890,000 1,145,000      
The Notes [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Covenant Description     The Notes contain restrictive covenants customary for such financings, including, among other things, covenants that place limits on Woodward’s ability to incur liens on assets, incur additional debt (including a leverage or coverage-based maintenance test), transfer or sell Woodward’s assets, merge or consolidate with other persons and enter into material transactions with affiliates. Under the financial covenants contained in the note purchase agreement governing each series of the Notes, Woodward’s priority debt may not exceed, at any time, 15% of its consolidated net worth. Woodward’s Leverage Ratio cannot exceed 4.0 to 1.0 during any material acquisition period, or 3.5 to 1.0 at any other time on a rolling four quarter basis. In the event that Woodward’s Leverage Ratio exceeds 3.5 to 1.0 during any material acquisition period, the interest rate on each series of Notes will increase. The minimum consolidated net worth, prior year positive net income, and net cash proceeds resulting from certain issuances of stock for satisfaction of Woodward’s leverage ratio are consistent between the Notes and Revolving Credit Agreement.        
Percent of debt not exceed net worth     5.00%        
Unamortized debt issuance costs     $ 890,000 1,145,000      
The Notes [Member] | Minimum [Member]              
Debt Instrument [Line Items]              
Leverage ratio     0.35        
The Notes [Member] | Maximum [Member]              
Debt Instrument [Line Items]              
Leverage ratio     0.4        
Second Amended And Restated Revolving Credit Agreement [Member]              
Debt Instrument [Line Items]              
Principal amount borrowing outstanding     $ 217,000,000        
Effective interest rate     0.0582        
Outstanding borrowings       $ 0      
Line of Credit Facility, Percentage of Positive Net Income as Part of Amended and Restated Revolving Credit Agreement     50.00%        
Line Of Credit Facility, Percentage of Net Cash Proceeds as Part of Amended And Restated       50.00%      
Line Of Credit Facility, Minimum Consolidated Net Worth Covenant     $ 1,156,000,000        
Debt Instrument, Covenant Description     The Second Amended and Restated Revolving Credit Agreement contains certain covenants customary with such agreements, which are generally consistent with the covenants applicable to Woodward’s long-term debt agreements, and contains customary events of default, including certain cross default provisions related to Woodward’s other outstanding material debt arrangements, the occurrence of which would permit the lenders to accelerate the amounts due thereunder. In addition, the Second Amended and Restated Revolving Credit Agreement includes the following financial covenants: (i) a maximum permitted leverage ratio of consolidated net debt to consolidated earnings before interest, taxes, depreciation, stock-based compensation, and amortization, plus any unusual non-cash charges to the extent deducted in computing net income and transaction costs associated with permitted acquisitions (incurred within six-months of the permitted acquisition), minus any unusual non-cash gains to the extent added in computing net income (“Leverage Ratio”) for Woodward and its consolidated subsidiaries of 3.5 to 1.0, which ratio, subject to certain restrictions, may increase to 4.0 to 1.0 for each period of four consecutive quarters during which a permitted acquisition occurs, and (ii) a minimum consolidated net worth of $1,156,000 plus (a) 50% of Woodward’s positive net income for the prior fiscal year and (b) 50% of Woodward’s net cash proceeds resulting from certain issuances of stock, subject to certain adjustments.        
Debt issuance costs     $ 2,236,000        
Second Amended And Restated Revolving Credit Agreement [Member] | Minimum [Member]              
Debt Instrument [Line Items]              
Leverage ratio     0.35        
Second Amended And Restated Revolving Credit Agreement [Member] | Maximum [Member]              
Debt Instrument [Line Items]              
Leverage ratio     0.4        
Note Purchase Agreement [Member]              
Debt Instrument [Line Items]              
Face amount   $ 250,000,000          
First Closing Notes [Member]              
Debt Instrument [Line Items]              
Issuance date   Oct. 01, 2013          
USD Notes [Member]              
Debt Instrument [Line Items]              
Issuance date   Nov. 15, 2013          
Series H and K Notes [Member]              
Debt Instrument [Line Items]              
Payment of principal balance $ 75,000,000            
2016 Note Purchase Agreements [Member]              
Debt Instrument [Line Items]              
Face amount | €             € 160,000,000
Issuance date     Sep. 23, 2016        
Series M Notes [Member]              
Debt Instrument [Line Items]              
Maturity date     Sep. 23, 2026        
Face amount | €             40,000,000
Series N Notes [Member]              
Debt Instrument [Line Items]              
Face amount | €             77,000,000
Series O Notes [Member]              
Debt Instrument [Line Items]              
Face amount | €             € 43,000,000
2018 Note Purchase Agreement [Member]              
Debt Instrument [Line Items]              
Face amount           $ 400,000,000  
Series P Notes [Member]              
Debt Instrument [Line Items]              
Face amount           85,000,000  
Series P Notes [Member] | Cross Currency Interest Rate Swaps [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Effective Percentage     1.82%        
Series P Notes [Member] | 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Effective Percentage     3.44%        
Series Q Notes [Member]              
Debt Instrument [Line Items]              
Face amount           85,000,000  
Series Q Notes [Member] | Cross Currency Interest Rate Swaps [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Effective Percentage     2.15%        
Series Q Notes [Member] | 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Effective Percentage     3.44%        
Series R Notes [Member]              
Debt Instrument [Line Items]              
Face amount           75,000,000  
Series R Notes [Member] | Cross Currency Interest Rate Swaps [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Effective Percentage     2.42%        
Series R Notes [Member] | 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Effective Percentage     3.45%        
Series S Notes [Member]              
Debt Instrument [Line Items]              
Face amount           75,000,000  
Series S Notes [Member] | Cross Currency Interest Rate Swaps [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Effective Percentage     2.55%        
Series S Notes [Member] | 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Effective Percentage     3.50%        
Series T Notes [Member]              
Debt Instrument [Line Items]              
Face amount           $ 80,000,000  
Series T Notes [Member] | Cross Currency Interest Rate Swaps [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Effective Percentage     2.90%        
Series T Notes [Member] | 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Interest Rate, Effective Percentage     3.62%        
Revolving Credit Facility [Member]              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity     $ 1,000,000,000        
Line of credit facility, maximum borrowing capacity extension     $ 1,500,000,000        
Maturity date     Oct. 21, 2027        
Outstanding borrowings     $ 217,000,000        
Revolving Credit Facility [Member] | Minimum [Member] | SOFR [Member]              
Debt Instrument [Line Items]              
Basis spread on variable rate     0.875%        
Revolving Credit Facility [Member] | Maximum [Member] | SOFR [Member]              
Debt Instrument [Line Items]              
Basis spread on variable rate     1.75%        
Foreign Lines of Credit and Overdraft Facilities [Member]              
Debt Instrument [Line Items]              
Line of credit facility, maximum borrowing capacity     $ 25,604,000        
Short-term debt     0 $ 0      
Revolving Credit Agreement [Member]              
Debt Instrument [Line Items]              
Balance of unamortized debt issuance costs, line of credit     $ 1,977,000 $ 2,636,000      
v3.24.3
Credit Facilities, Short-term Borrowings and Long-term Debt (Schedule of Long-term Debt) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Debt Instrument [Line Items]    
Long-term debt $ 655,470 $ 721,526
Unamortized debt issuance costs (890) (1,145)
Less: Current portion of long-term debt 85,719 75,817
Long-term debt, less current portion $ 569,751 645,709
Series H Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt   25,000
Interest rate 4.03%  
Maturity date Nov. 15, 2023  
Series I Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 25,000 25,000
Interest rate 4.18%  
Maturity date Nov. 15, 2025  
Series K Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt   50,000
Interest rate 4.03%  
Maturity date Nov. 15, 2023  
Series L Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 50,000 50,000
Interest rate 4.18%  
Maturity date Nov. 15, 2025  
Series M Notes [Member]    
Debt Instrument [Line Items]    
Maturity date Sep. 23, 2026  
Series M Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 44,656 42,280
Interest rate 1.12%  
Maturity date Sep. 23, 2026  
Series N Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 85,963 81,390
Interest rate 1.31%  
Maturity date Sep. 23, 2028  
Series O Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 48,005 45,451
Interest rate 1.57%  
Maturity date Sep. 23, 2031  
Series P Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 85,000 85,000
Interest rate 4.27%  
Maturity date May 30, 2025  
Series Q Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 85,000 85,000
Interest rate 4.35%  
Maturity date May 30, 2027  
Series R Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 75,000 75,000
Interest rate 4.41%  
Maturity date May 30, 2029  
Series S Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 75,000 75,000
Interest rate 4.46%  
Maturity date May 30, 2030  
Finance Leases [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 2,736 3,550
Series T Notes [Member] | Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 80,000 $ 80,000
Interest rate 4.61%  
Maturity date May 30, 2033  
v3.24.3
Credit Facilities, Short-term Borrowings and Long-term Debt (Schedule of Future Principal Payments of Notes and Financing Leases) (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Debt Disclosure [Abstract]  
2025 $ 85,719
2026 119,658
2027 85,021
2028 87,209
2029 75,000
Thereafter 203,753
Notes and financing leases $ 656,360
v3.24.3
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Accrued Liabilities, Current [Abstract]        
Salaries and other member benefits $ 151,921 $ 146,713    
Product warranties and related liabilities 18,844 18,162 $ 40,042 $ 17,481
Interest payable 12,163 13,611    
Accrued retirement benefits 2,888 2,822    
Net current contract liabilities 56,791 33,748    
Taxes, other than income 15,884 13,436    
Other 34,151 34,124    
Accrued liabilities $ 292,642 $ 262,616    
v3.24.3
Accrued Liabilities (Changes in Accrued Product Warranties and Related Liabilities) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Accrued Liabilities, Current [Abstract]      
Beginning of period $ 18,162 $ 40,042 $ 17,481
Additions, net of recoveries 13,797 25,984 29,827
Reductions for settlement (13,368) (47,949) (6,937)
Foreign currency exchange rate changes 253 85 (329)
End of period $ 18,844 $ 18,162 $ 40,042
v3.24.3
Accrued Liabilities (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ 0 $ 5,172 $ (3,420)  
Hydraulics Systems and Engine Systems [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges   $ 5,172 $ 1,083 $ 5,008
Restructuring Reserve, Accrual Adjustment $ 4,503      
v3.24.3
Accrued Liabilities (Changes in Restructuring Reserve Activity) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges $ 0 $ 5,172 $ (3,420)
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration]   Restructuring Charges Restructuring Charges
Employee Severance [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges, beginning of period   $ 1,083  
Restructuring Charges   5,172  
Payments   (6,290)  
Non-cash activity   35  
Restructuring charges, end of period     $ 1,083
Employee Severance [Member] | Cost Reduction Plan [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges   5,172  
Payments   (5,207)  
Non-cash activity   35  
Employee Severance [Member] | Aerospace [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges, beginning of period   139  
Payments   (139)  
Restructuring charges, end of period     139
Employee Severance [Member] | Industrial [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring charges, beginning of period   944  
Payments   $ (944)  
Restructuring charges, end of period     $ 944
v3.24.3
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Other Liabilities, Noncurrent [Abstract]    
Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 83,094 $ 72,570
Total unrecognized tax benefits 10,104 8,020
Noncurrent income taxes payable 5,894 10,714
Deferred economic incentives [1] 7,062 5,797
Noncurrent operating lease liabilities 22,670 20,685
Cross-currency swap derivative liability 10,562  
Net noncurrent contract liabilities 424,609 414,657
Other 13,385 11,047
Other liabilities $ 577,380 $ 543,490
[1] Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects.
v3.24.3
Other (Income) Expense, Net (Schedule of Other (Income) Expense, Net) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Equity interest in the earnings of the JV $ (41,191) $ (36,846) $ (18,193)
Net (gain) loss on sales of assets and businesses (457) 1,491 (1,775)
Gain on non-recurring matter related to a previous acquisition (4,803)    
Rent income (347) (360) (672)
Net (gain) loss on investments in deferred compensation program (6,571) (3,265) 6,295
Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense 11,764 10,547 11,572
Other (2,035) (764) (774)
Other (income) expense, net $ (67,168) $ (50,291) $ (26,691)
v3.24.3
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Current:      
Federal $ 46,102 $ 41,195 $ 21,869
State 4,841 2,641 2,310
Foreign 74,663 39,719 27,577
Deferred:      
Federal (18,888) (38,136) (13,216)
State (7,341) (10,006) (8,623)
Foreign (18,377) 7,987 (1,717)
Income tax expense $ 81,000 $ 43,400 $ 28,200
v3.24.3
Income Taxes (Earnings Before Income Taxes by Geographical Area) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Income Tax Disclosure [Abstract]      
United States $ 244,320 $ 122,389 $ 99,427
Other countries 209,651 153,379 100,471
Earnings before income taxes $ 453,971 $ 275,768 $ 199,898
v3.24.3
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Deferred tax assets:    
Defined benefit plans, other postretirement $ 3,695 $ 3,769
Foreign net operating loss carryforwards 6,547 3,748
Inventory 77,013 68,034
Stock-based and other compensation 48,360 51,099
Deferred revenue net of unbilled receivables 43,400 46,283
Other reserves 7,850 8,244
Tax credits and incentives 30,886 28,319
Lease obligations 6,851 6,103
Other 4,622 4,476
Valuation allowance (5,983) (3,827)
Capitalized research and development costs 63,080 37,328
Total deferred tax assets, net of valuation allowance 286,321 253,576
Deferred tax liabilities:    
Goodwill and intangibles - net (198,012) (194,891)
Property, plant and equipment (97,340) (99,547)
Right of use assets (6,691) (5,948)
Defined benefit plans, pension (13,133) (9,892)
Other (8,612) (17,568)
Total deferred tax liabilities (323,788) (327,846)
Net deferred tax liabilities $ (37,467) $ (74,270)
v3.24.3
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2020
Income Taxes [Line Items]        
Statutory tax rate 21.00% 21.00% 21.00%  
Net operating loss deferred tax asset, foreign $ 6,547 $ 3,748    
Tax credits and incentives 30,886 28,319    
Undistributed foreign earnings not provided for taxes 361,600      
Unrecognized tax benefits that, if recognized, would affect the effective tax rate 8,003 $ 6,963    
Possible decrease in unrecognized tax benefits liability 1,909      
Booking of associated net deferred tax liability $ 6,100      
Domestic Tax Authority [Member]        
Income Taxes [Line Items]        
Year remaining open to tax examination       2021
Foreign Jurisdiction [Member]        
Income Taxes [Line Items]        
Year remaining open to tax examination       2018
State and Local Jurisdiction [Member]        
Income Taxes [Line Items]        
Year remaining open to tax examination       2018
v3.24.3
Income Taxes (Reconciliation of U.S Statutory Rate to Effective Tax Rate) (Details)
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Income Tax Disclosure [Abstract]      
Statutory tax rate 21.00% 21.00% 21.00%
State income taxes, net of federal tax benefit (0.40%) (1.60%) (2.50%)
Taxes on international activities (0.80%) (0.60%) 0.80%
Research credit (2.10%) (3.90%) (4.50%)
Net excess income tax benefit from stock-based compensation (3.00%) (3.70%) (2.50%)
Adjustments of prior period tax items 0.90% (1.30%)  
Compensation and benefits 0.80% 0.60% 0.30%
Distributable foreign earnings 1.40% 4.60%  
Other items, net 0.00% 0.60% 1.50%
Effective tax rate 17.80% 15.70% 14.10%
v3.24.3
Income Taxes (Reconciliation of the Beginning and Ending Amounts of Gross Unrecognized Tax Benefits) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Income Tax Disclosure [Abstract]      
Beginning Balance $ 11,112 $ 11,938 $ 15,199
Additions to current year tax positions 5,673 3,933 1,783
Reductions to prior year tax positions (99) (141) (963)
Additions to prior year tax positions 180   112
Lapse of applicable statute of limitations (2,592) (4,618) (4,193)
Ending Balance $ 14,274 $ 11,112 $ 11,938
v3.24.3
Retirement Benefits (Narrative) (Details)
shares in Thousands, $ in Thousands
 12 Months Ended
Sep. 30, 2024
USD ($)
yr
shares
Sep. 30, 2023
USD ($)
shares
Sep. 30, 2022
USD ($)
shares
Defined Benefit Plan Disclosure [Line Items]      
Percentage of annual contribution equal to eligible prior year wages 5.00%    
Common shares issued from treasury to settle benefit obligations $ 21,889 $ 19,466 $ 17,132
Shares of woodward stock held in woodward retirement savings plan | shares 2,222 2,441  
Accrued liabilities $ 19,532 $ 16,634  
Treasury Stock [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Common shares issued from treasury to settle benefit obligations $ 7,922 $ 8,523 $ 6,567
Common shares issued from treasury stock for benefit plans, shares | shares 159 188 150
Defined Benefit Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Current portion of pension obligation $ 1,166 $ 1,084  
Projected benefit obligation 218,302 194,485 $ 197,921
Fair value of plan assets 237,393 206,145 202,060
Defined Benefit Pension Plan [Member] | Cash and Cash Equivalents      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 5,500 2,534  
Defined Benefit Pension Plan [Member] | Pooled funds: Index linked U.K. government securities fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 12,049 14,601  
Defined Benefit Pension Plan [Member] | Pooled funds: Index linked U.K. long-term government securities fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 14,924 4,485  
Defined Benefit Pension Plan [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Discount rate support/source data In the United States, Woodward uses a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding to determine the benefit obligations at year end    
Convergence period 5 years    
Long term rate 0.75    
Projected benefit obligation $ 140,955 127,222 132,444
Fair value of plan assets 179,917 155,370 154,481
Accumulated benefit obligation 140,955    
Estimated future employer contributions in the next fiscal year 0    
Defined Benefit Pension Plan [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Current portion of pension obligation $ 1,166 1,084  
Discount rate support/source data In the United Kingdom, Germany, and Japan, Woodward uses a high-quality corporate bond yield curve matched with separate cash flows to develop a single rate to determine the single rate equivalent to settle the entire benefit obligations in each jurisdiction. For the fiscal years ended September 30, 2024 and 2023, the discount rate used to determine periodic service cost and interest cost components of the overall benefit costs was based on spot rates derived from the same high-quality corporate bond yield curve used to determine the September 30, 2023 and 2022 benefit obligation, respectively, matched with separate cash flows for each future year    
Projected benefit obligation $ 77,347 67,263 65,477
Fair value of plan assets 57,476 50,775 47,579
Defined Benefit Pension Plan [Member] | United Kingdom      
Defined Benefit Plan Disclosure [Line Items]      
Projected benefit obligation 34,220    
Fair value of plan assets 48,098    
Accumulated benefit obligation 33,766    
Estimated future employer contributions in the next fiscal year 277    
Defined Benefit Pension Plan [Member] | Japan      
Defined Benefit Plan Disclosure [Line Items]      
Projected benefit obligation 6,747    
Fair value of plan assets 9,378    
Accumulated benefit obligation 5,958    
Estimated future employer contributions in the next fiscal year 147    
Defined Benefit Pension Plan [Member] | Germany [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Projected benefit obligation 36,380    
Fair value of plan assets 0    
Accumulated benefit obligation 36,380    
Estimated future employer contributions in the next fiscal year $ 1,185    
Defined Benefit Pension Plan [Member] | Japan And United Kingdom [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Annual improvement rate 1.5    
Other Postretirement Benefit Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Current portion of pension obligation $ 1,668 1,739  
Net periodic retirement (benefit) cost 347 410 484
Projected benefit obligation 15,203 15,336 $ 16,797
Accumulated benefit obligation $ 15,203 15,336  
Option to elect company provided medical insurance coverage up to this age and a Medicare supplemental plan after this age | yr 65    
Age employees were eligible to participate in plan | yr 55    
Defined benefit plan, minimum years of service required for employees to be eligible for benefits     10 years
Approximate number of retired employees and their covered dependents and beneficiaries currently providing postretirement benefits 3    
Approximate number of active employees and their covered dependants and beneficiaries who may receive postretirement benefits in the future 347    
As a result of a plan amendment, all postretirement medical benefits are fully insured for retirees who have attained this age 65    
Other Postretirement Benefit Plans [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Discount rate support/source data Woodward used a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding to determine the benefit obligations at year end    
Convergence period 5 years    
Long term rate 0.75    
Woodward Retirement Savings Plan [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated benefit obligation   127,222  
Woodward Retirement Savings Plan [Member] | United Kingdom      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated benefit obligation   30,067  
Woodward Retirement Savings Plan [Member] | Japan      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated benefit obligation   5,790  
Woodward Retirement Savings Plan [Member] | Germany [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated benefit obligation   $ 30,547  
v3.24.3
Retirement Benefits (Schedule of Amount of Expense Associated with Defined Contribution Plans) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Retirement Benefits [Abstract]      
Company costs $ 51,148 $ 44,202 $ 40,898
v3.24.3
Retirement Benefits (Schedule of Assumptions Used) (Details)
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Pension Plan [Member] | United States [Member]      
Weighted-average assumptions to determine benefit obligation:      
Discount rate 5.05% 6.20% 5.70%
Weighted-average assumptions to determine periodic benefit costs:      
Discount rate 6.20% 5.70% 3.05%
Long-term rate of return on plan assets 6.03% 5.53% 5.00%
Defined Benefit Pension Plan [Member] | United Kingdom      
Weighted-average assumptions to determine benefit obligation:      
Discount rate 5.28% 5.85% 5.35%
Rate of compensation increase 3.40% 3.60% 4.00%
Weighted-average assumptions to determine periodic benefit costs:      
Long-term rate of return on plan assets 4.90% 4.80% 3.80%
Discount rate - service cost 5.91% 4.99% 2.15%
Discount rate - interest cost 5.84% 5.71% 1.83%
Rate of compensation increase 3.60% 4.00% 4.00%
Defined Benefit Pension Plan [Member] | Japan      
Weighted-average assumptions to determine benefit obligation:      
Discount rate 1.92% 2.01% 1.60%
Rate of compensation increase 3.00% 2.00% 2.00%
Weighted-average assumptions to determine periodic benefit costs:      
Long-term rate of return on plan assets 3.25% 2.75% 2.00%
Discount rate - service cost 2.20% 1.78% 1.13%
Discount rate - interest cost 1.58% 1.17% 0.65%
Rate of compensation increase 2.00% 2.00% 2.25%
Defined Benefit Pension Plan [Member] | Germany [Member]      
Weighted-average assumptions to determine benefit obligation:      
Discount rate 3.58% 4.27% 3.97%
Rate of compensation increase 2.50% 2.50% 2.50%
Weighted-average assumptions to determine periodic benefit costs:      
Discount rate - service cost 4.23% 3.95% 1.54%
Discount rate - interest cost 4.29% 3.91% 1.06%
Rate of compensation increase 2.50% 2.50% 2.50%
Other Postretirement Benefit Plans [Member]      
Weighted-average assumptions to determine benefit obligation:      
Discount rate 5.00% 6.25% 5.70%
Weighted-average assumptions to determine periodic benefit costs:      
Discount rate 6.25% 5.70% 2.80%
v3.24.3
Retirement Benefits (Schedule of Net Periodic Benefit Costs) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 2,019 $ 2,226 $ 3,893
Interest cost 10,811 10,434 6,893
Expected return on plan assets (11,490) (10,597) (13,287)
Amortization of: Net loss (gain) (453) (328) 814
Amortization of: Net prior service cost 721 720 1,004
Net periodic cost (benefit) 1,608 2,455 (683)
Other Postretirement Benefit Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost   1 1
Interest cost 902 904 577
Amortization of: Net loss (gain) (555) (495) (94)
Net periodic cost (benefit) 347 410 484
United States [Member] | Defined Benefit Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 775 893 1,554
Interest cost 7,598 7,297 5,281
Expected return on plan assets (9,084) (8,297) (10,853)
Amortization of: Net loss (gain) 226 292 259
Amortization of: Net prior service cost 698 698 981
Net periodic cost (benefit) 213 883 (2,778)
Foreign Plan | Defined Benefit Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 1,244 1,333 2,339
Interest cost 3,213 3,137 1,612
Expected return on plan assets (2,406) (2,300) (2,434)
Amortization of: Net loss (gain) (679) (620) 555
Amortization of: Net prior service cost 23 22 23
Net periodic cost (benefit) $ 1,395 $ 1,572 $ 2,095
v3.24.3
Retirement Benefits (Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Pension Plan [Member]      
Changes in projected benefit obligation:      
Projected benefit obligation at beginning of year $ 194,485 $ 197,921  
Plan amendment 1,121    
Service cost 2,019 2,226  
Interest cost 10,811 10,434  
Net actuarial loss (gain) 17,377 (9,388)  
Contribution by participants 12 11  
Benefits paid (12,657) (11,831)  
Foreign currency exchange rate changes 5,134 5,112  
Projected benefit obligation at end of year 218,302 194,485 $ 197,921
Changes in fair value of plan assets:      
Fair value of plan assets at beginning of year 206,145 202,060  
Actual return on plan assets 37,248 9,928  
Contributions by the Company 2,038 2,322  
Contribution by participants 12 11  
Benefits paid (12,657) (11,831)  
Foreign currency exchange rate changes 4,607 3,655  
Fair value of plan assets at end of year 237,393 206,145 202,060
Net over/(under) funded status at end of year 19,091 11,660  
Other Postretirement Benefits Plan [Member]      
Changes in projected benefit obligation:      
Projected benefit obligation at beginning of year 15,336 16,797  
Service cost   1 1
Interest cost 902 904 577
Net actuarial loss (gain) 597 (682)  
Contribution by participants 834 873  
Benefits paid (2,466) (2,557)  
Projected benefit obligation at end of year 15,203 15,336 16,797
Changes in fair value of plan assets:      
Contributions by the Company 1,632 1,684  
Contribution by participants 834 873  
Benefits paid (2,466) (2,557)  
Net over/(under) funded status at end of year (15,203) (15,336)  
United States [Member] | Defined Benefit Pension Plan [Member]      
Changes in projected benefit obligation:      
Projected benefit obligation at beginning of year 127,222 132,444  
Plan amendment 1,121    
Service cost 775 893  
Interest cost 7,598 7,297  
Net actuarial loss (gain) 13,249 (4,946)  
Benefits paid (9,010) (8,466)  
Projected benefit obligation at end of year 140,955 127,222 132,444
Changes in fair value of plan assets:      
Fair value of plan assets at beginning of year 155,370 154,481  
Actual return on plan assets 33,382 9,355  
Contributions by the Company 175    
Benefits paid (9,010) (8,466)  
Fair value of plan assets at end of year 179,917 155,370 154,481
Net over/(under) funded status at end of year 38,962 28,148  
Foreign Plan | Defined Benefit Pension Plan [Member]      
Changes in projected benefit obligation:      
Projected benefit obligation at beginning of year 67,263 65,477  
Service cost 1,244 1,333  
Interest cost 3,213 3,137  
Net actuarial loss (gain) 4,128 (4,442)  
Contribution by participants 12 11  
Benefits paid (3,647) (3,365)  
Foreign currency exchange rate changes 5,134 5,112  
Projected benefit obligation at end of year 77,347 67,263 65,477
Changes in fair value of plan assets:      
Fair value of plan assets at beginning of year 50,775 47,579  
Actual return on plan assets 3,866 573  
Contributions by the Company 1,863 2,322  
Contribution by participants 12 11  
Benefits paid (3,647) (3,365)  
Foreign currency exchange rate changes 4,607 3,655  
Fair value of plan assets at end of year 57,476 50,775 $ 47,579
Net over/(under) funded status at end of year $ (19,871) $ (16,488)  
v3.24.3
Retirement Benefits (Schedule of Accumulated Benefit Obligations In Excess of and Less Than Fair Value of Plan Assets) (Details) - Defined Benefit Pension Plan [Member] - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Plans with accumulated benefit obligation in excess of plan assets    
Projected benefit obligation, plans with ABO in excess of plan assets $ (56,783) $ (49,726)
Accumulated benefit obligation, plans with ABO in excess of plan assets (56,757) (49,711)
Fair value of plan assets, plans with ABO in excess of plan assets 20,053 18,047
Plans with accumulated benefit obligation less than plan assets    
Projected benefit obligation, plans with ABO less than plan assets (161,519) (144,759)
Accumulated benefit obligation, plans with ABO less than plan assets (160,302) (143,914)
Fair value of plan assets, plans with ABO less than plan assets $ 217,340 $ 188,098
v3.24.3
Retirement Benefits (Schedule of Amounts Recognized in Balance Sheets and Accumulated Other Comprehensive (Earnings) Losses) (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Pension Plan [Member]      
Amounts recognized in the Consolidated Balance Sheets consist of:      
Other non-current assets $ 55,821 $ 43,339  
Accrued liabilities (1,166) (1,084)  
Other non-current liabilities (35,564) (30,595)  
Net over/(under) funded status at end of year 19,091 11,660  
Amounts recognized in accumulated other comprehensive (earnings) losses consist of:      
Unrecognized net prior service cost (benefit) 3,709 3,264  
Unrecognized net losses (gains) (7,404) 680  
Total amounts recognized (3,695) 3,944 $ 13,300
Deferred taxes (3,690) (5,293)  
Amounts recognized in accumulated other comprehensive (earnings) (7,385) (1,349)  
Other Postretirement Benefit Plans [Member]      
Amounts recognized in the Consolidated Balance Sheets consist of:      
Accrued liabilities (1,668) (1,739)  
Other non-current liabilities (13,535) (13,597)  
Net over/(under) funded status at end of year (15,203) (15,336)  
Amounts recognized in accumulated other comprehensive (earnings) losses consist of:      
Unrecognized net losses (gains) (5,260) (6,412)  
Total amounts recognized (5,260) (6,412) (6,225)
Deferred taxes 1,009 1,292  
Amounts recognized in accumulated other comprehensive (earnings) (4,251) (5,120)  
United States [Member] | Defined Benefit Pension Plan [Member]      
Amounts recognized in the Consolidated Balance Sheets consist of:      
Other non-current assets 39,148 29,172  
Other non-current liabilities (186) (1,024)  
Net over/(under) funded status at end of year 38,962 28,148  
Amounts recognized in accumulated other comprehensive (earnings) losses consist of:      
Unrecognized net prior service cost (benefit) 3,200 2,777  
Unrecognized net losses (gains) (2,749) 8,527  
Total amounts recognized 451 11,304 18,297
Deferred taxes (3,499) (6,101)  
Amounts recognized in accumulated other comprehensive (earnings) (3,048) 5,203  
Foreign Plan | Defined Benefit Pension Plan [Member]      
Amounts recognized in the Consolidated Balance Sheets consist of:      
Other non-current assets 16,673 14,167  
Accrued liabilities (1,166) (1,084)  
Other non-current liabilities (35,378) (29,571)  
Net over/(under) funded status at end of year (19,871) (16,488)  
Amounts recognized in accumulated other comprehensive (earnings) losses consist of:      
Unrecognized net prior service cost (benefit) 509 487  
Unrecognized net losses (gains) (4,655) (7,847)  
Total amounts recognized (4,146) (7,360) $ (4,997)
Deferred taxes (191) 808  
Amounts recognized in accumulated other comprehensive (earnings) $ (4,337) $ (6,552)  
v3.24.3
Retirement Benefits (Schedule of Changes in Plan Assets and Benefit Obligations Recorded in Other Comprehensive (Earnings) Losses) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]      
Net loss (gain) arising during the period $ (7,826) $ (9,401) $ (6,318)
Prior service cost 1,121 0 0
Amortization of: Net (loss) gain 1,049 823 (720)
Prior service (cost) benefit (721) (720) (1,004)
Foreign currency exchange rate changes on minimum retirement benefit liabilities 110 247 1,158
Defined Benefit Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Beginning of year 3,944 13,300  
Net loss (gain) arising during the period (8,382) (8,719)  
Prior service cost 1,121    
Amortization of: Net (loss) gain 453 328  
Prior service (cost) benefit (721) (720)  
Foreign currency exchange rate changes on minimum retirement benefit liabilities (110) (245)  
End of year (3,695) 3,944 13,300
Defined Benefit Pension Plan [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Beginning of year 11,304 18,297  
Net loss (gain) arising during the period (11,050) (6,003)  
Prior service cost 1,121    
Amortization of: Net (loss) gain (226) (292)  
Prior service (cost) benefit (698) (698)  
End of year 451 11,304 18,297
Defined Benefit Pension Plan [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Beginning of year (7,360) (4,997)  
Net loss (gain) arising during the period 2,668 (2,716)  
Amortization of: Net (loss) gain 679 620  
Prior service (cost) benefit (23) (22)  
Foreign currency exchange rate changes on minimum retirement benefit liabilities (110) (245)  
End of year (4,146) (7,360) (4,997)
Other Postretirement Benefit Plans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Beginning of year (6,412) (6,225)  
Net loss (gain) arising during the period 597 (682)  
Amortization of: Net (loss) gain 555 495  
End of year $ (5,260) $ (6,412) $ (6,225)
v3.24.3
Retirement Benefits (Schedule of Expected Benefit Payments) (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Defined Benefit Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2025 $ 13,190
2026 13,653
2027 14,021
2028 14,528
2029 14,752
2030-2034 77,658
Other Postretirement Benefit Plans [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2025 2,519
2026 2,447
2027 2,357
2028 2,267
2029 2,171
2030-2034 9,101
United States [Member] | Defined Benefit Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2025 9,637
2026 9,997
2027 10,253
2028 10,481
2029 10,655
2030-2034 53,308
Foreign Plan | Defined Benefit Pension Plan [Member]  
Defined Benefit Plan Disclosure [Line Items]  
2025 3,553
2026 3,656
2027 3,768
2028 4,047
2029 4,097
2030-2034 $ 24,350
v3.24.3
Retirement Benefits (Schedule of Allocation of Plan Assets, Actual and Target Allocations) (Details) - Defined Benefit Pension Plan [Member]
Sep. 30, 2024
Sep. 30, 2023
United States [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 100.00% 100.00%
United States [Member] | Equity Securities    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 30.50% 31.90%
United States [Member] | Equity Securities | Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 2.30% 2.30%
United States [Member] | Equity Securities | Maximum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 51.10% 51.20%
United States [Member] | Debt Securities    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 67.60% 66.60%
United States [Member] | Debt Securities | Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 58.90% 58.80%
United States [Member] | Debt Securities | Maximum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 96.70% 96.50%
United States [Member] | Other Investment Asset    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 1.90% 1.50%
United States [Member] | Other Investment Asset | Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 0.00% 0.00%
United Kingdom    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 100.00% 100.00%
United Kingdom | Equity Securities    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 0.00% 20.70%
United Kingdom | Equity Securities | Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 0.00% 10.00%
United Kingdom | Equity Securities | Maximum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges   30.00%
United Kingdom | Debt Securities    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 95.80% 79.20%
United Kingdom | Debt Securities | Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 90.00% 70.00%
United Kingdom | Debt Securities | Maximum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 100.00% 90.00%
United Kingdom | Other Investment Asset    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 4.20% 0.10%
United Kingdom | Other Investment Asset | Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 0.00% 0.00%
United Kingdom | Other Investment Asset | Maximum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 10.00%  
Japan    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 100.00% 100.00%
Japan | Equity Securities    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 39.70% 40.00%
Japan | Equity Securities | Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 36.00% 36.00%
Japan | Equity Securities | Maximum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 44.00% 44.00%
Japan | Debt Securities    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 59.40% 60.00%
Japan | Debt Securities | Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 55.00% 55.00%
Japan | Debt Securities | Maximum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 63.00% 63.00%
Japan | Other Investment Asset    
Defined Benefit Plan Disclosure [Line Items]    
Percentage of Plan Assets 0.90% 0.00%
Japan | Other Investment Asset | Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 0.00% 0.00%
Japan | Other Investment Asset | Maximum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Target Allocation Ranges 2.00% 2.00%
v3.24.3
Retirement Benefits (Schedule of Allocation of Plan Assets, Fair Value Hierarchy) (Details) - Defined Benefit Pension Plan [Member] - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 237,393 $ 206,145 $ 202,060
United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 179,917 155,370 154,481
Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 57,476 50,775 $ 47,579
Level 1 [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 179,917 155,370  
Level 1 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2,130 149  
Level 2 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 55,346 50,626  
Cash and Cash Equivalents      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 5,500 2,534  
Cash and Cash Equivalents | Level 1 [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3,370 2,385  
Cash and Cash Equivalents | Level 1 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2,130 149  
Debt Security, Corporate, US      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 121,581 103,401  
Debt Security, Corporate, US | Level 1 [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 121,581 103,401  
Domestic Equity Large Cap Fund      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 33,454 31,136  
Domestic Equity Large Cap Fund | Level 1 [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 33,454 31,136  
International Equity Large Cap Growth Fund      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 21,512 18,448  
International Equity Large Cap Growth Fund | Level 1 [Member] | United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 21,512 18,448  
Private Equity Funds Foreign Japan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,939 1,830  
Private Equity Funds Foreign Japan | Level 2 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,939 1,830  
Private Equity Funds Pooled Funds Foreign      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,786 1,600  
Private Equity Funds Pooled Funds Foreign | Level 2 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,786 1,600  
Fixed Income Funds Japan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 4,157 3,785  
Fixed Income Funds Japan | Level 2 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 4,157 3,785  
Fixed Income Funds Foreign      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,409 1,287  
Fixed Income Funds Foreign | Level 2 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,409 1,287  
Global Target Return Equity Bond Fund      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets   8,719  
Global Target Return Equity Bond Fund | Level 2 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets   8,719  
Corporate Debt Securities United Kingdom      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 17,085 14,319  
Corporate Debt Securities United Kingdom | Level 2 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 17,085 14,319  
Pooled funds: Index linked U.K. government securities fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 12,049 14,601  
Pooled funds: Index linked U.K. government securities fund [Member] | Level 2 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 12,049 14,601  
Pooled funds: Index linked U.K. long-term government securities fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 14,924 4,485  
Pooled funds: Index linked U.K. long-term government securities fund [Member] | Level 2 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 14,924 $ 4,485  
Pooled funds: Index U.K Long-term Government Securities Fund [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,997    
Pooled funds: Index U.K Long-term Government Securities Fund [Member] | Level 2 [Member] | Foreign Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 1,997    
v3.24.3
Retirement Benefits (Schedule of Health Care Cost Trend Rates) (Details) - Other Postretirement Benefit Plans [Member]
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Defined Benefit Plan Disclosure [Line Items]    
Health care cost trend rate assumed for next year 6.00% 6.00%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00% 5.00%
Year that the rate reaches the ultimate trend rate 2030 2030
v3.24.3
Stockholders' Equity (Summary of Activity in Common Stock and Treasury Stock Share) (Details) - shares
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Balance, Common Stock, shares 72,960,000    
Balance, Treasury Stock, shares (13,070,000)    
Balance, Treasury stock held for deferred compensation, shares (55,000)    
Balance, Common Stock, shares 72,960,000 72,960,000  
Balance, Treasury Stock, shares (13,787,000) (13,070,000)  
Balance, Treasury stock held for deferred compensation, shares (45,000) (55,000)  
Common Stock [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Balance, Common Stock, shares 72,960,000 72,960,000 72,960,000
Balance, Common Stock, shares 72,960,000 72,960,000 72,960,000
Treasury Stock at Cost [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Balance, Treasury Stock, shares (13,070,000) (13,207,000) (9,702,000)
Purchase of treasury stock, shares (2,236,000) (1,060,000) (4,123,000)
Sales of treasury stock, shares 1,360,000 1,009,000 468,000
Common shares issued for benefit plans, shares 159,000 188,000 150,000
Balance, Treasury Stock, shares (13,787,000) (13,070,000) (13,207,000)
Treasury Stock Held for Deferred Compensation [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Balance, Treasury stock held for deferred compensation, shares (55,000) (139,000) (167,000)
Purchases of stock by deferred compensation, shares (1,000) (2,000) (3,000)
Distribution of stock from deferred compensation, shares 11,000 86,000 31,000
Balance, Treasury stock held for deferred compensation, shares (45,000) (55,000) (139,000)
v3.24.3
Stockholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Jan. 31, 2024
Nov. 01, 2023
Jan. 31, 2022
Nov. 30, 2019
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Jan. 22, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements         $ 26,694      
Forfeiture rate, Board of Directors         0.00%      
Forfeiture rate, non-Board of Directors         7.40%      
Stock-based compensation expense, before tax         $ 33,052 $ 23,958 $ 20,109  
Unrecognized compensation cost is expected to be recognized over a weighted-average period         1 year 9 months 14 days      
Executive Separation and Release Agreement [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Stock-based compensation expense, before tax         $ 1,682 $ 1,265    
Restricted Stock Units (RSUs) [Member] | RSU Agreement prior to November 14, 2023 [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Vesting period, in years         4 years      
Vesting rate         25.00%      
Restricted Stock Units (RSUs) [Member] | RSUs Granted after November 14, 2023 [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Vesting period, in years         3 years      
Vesting rate         33.30%      
Stock Options [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Vesting period, in years         4 years      
Vested contractual term, in years         10 years      
Exercise prices of stock options outstanding         $ 86.03 $ 80.48    
Weighted-average exercise price         $ 137.36      
Stock Options [Member] | RSU Agreement prior to November 14, 2023 [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Vesting rate         25.00%      
Performance Restricted Stock Units [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Award performance period (in years)   3 years            
Performance based criteria plan payout percentage, target   100.00%            
Discount for dividends         0.00%      
Performance Restricted Stock Units [Member] | Maximum [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Performance based criteria plan payout percentage   150.00%            
Performance Restricted Stock Units [Member] | Minimum [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Performance based criteria plan payout percentage   0.00%            
2019 Authorization [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Stock repurchase program authorized amount             $ 26,742  
Repurchase period in years       3 years        
Stock repurchase program, number of shares authorized to be repurchased             233,000  
2019 Authorization [Member] | Maximum [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Stock repurchase program authorized amount       $ 500,000        
2022 Authorization [Member] | Maximum [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Stock repurchase program authorized amount               $ 800,000
2022 Authorization [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Stock repurchase program authorized amount           $ 126,380 $ 446,042  
Repurchase period in years     2 years          
Stock repurchase program, number of shares authorized to be repurchased           1,060,000 3,890,000  
2024 Authorization [Member]                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Stock repurchase program authorized amount $ 600,000       $ 390,819      
Repurchase period in years 3 years              
Stock repurchase program, number of shares authorized to be repurchased         2,236,000      
v3.24.3
Stockholders' Equity (Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards) (Details) - Stock Options [Member] - $ / shares
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Weighted-average exercise price per share $ 137.36 $ 84.84 $ 115.3
Minimum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (years) 6 years 7 months 6 days 6 years 7 months 6 days 6 years 7 months 6 days
Estimated volatility 35.00% 34.70% 33.80%
Estimated dividend yield 0.70% 0.70% 0.60%
Risk-free interest rate 4.20% 3.40% 1.10%
Maximum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected term (years) 8 years 8 months 12 days 8 years 9 months 18 days 8 years 8 months 12 days
Estimated volatility 37.60% 37.60% 36.40%
Estimated dividend yield 0.70% 0.90% 0.80%
Risk-free interest rate 4.40% 4.40% 3.50%
v3.24.3
Stockholders' Equity (Weighted Average Grant Date Fair Value of Options Granted) (Details) - $ / shares
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Stock Options [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Weighted-average grant date fair value of options $ 58.34 $ 34.19 $ 41.78
v3.24.3
Stockholders' Equity (Summary of Activity for Stock Option Awards) (Details) - Stock Options [Member]
shares in Thousands
 12 Months Ended
Sep. 30, 2024
$ / shares
shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Number of options, Beginning balance | shares 4,842
Granted, Number of options | shares 87
Exercised, Number of options | shares (1,340)
Exercised, Number of options | shares (11)
Number of options, Ending balance | shares 3,578
Weighted Average Exercise Price Per Share, Beginning balance | $ / shares $ 80.48
Granted, Weighted Average Exercise Price Per Share | $ / shares 137.36
Exercised, Weighted Average Exercise Price Per Share | $ / shares 69.23
Forfeited, Weighted Average Exercise Price Per Share | $ / shares 96.82
Weighted Average Exercise Price Per Share, Ending balance | $ / shares $ 86.03
v3.24.3
Stockholders' Equity (Changes in Non-vested Stock Options) (Details) - Stock Options [Member] - $ / shares
shares in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of Options, Beginning balance 1,393    
Granted, Number of options 87    
Vested, Number of options (572)    
Options forfeited, Number of options (10)    
Number of Options, Ending balance 898 1,393  
Weighted-Average Grant Date Fair Value Per Share, Beginning balance $ 33.96    
Options granted, Weighted-Average Grant Date Fair Value Per Share 58.34 $ 34.19 $ 41.78
Options vested, Weighted-Average Grant Date Fair Value Per Share 32.36    
Options forfeited, Weighted-Average Grant Date Fair Value Per Share 37.76    
Weighted-Average Grant Date Fair Value Per Share, Ending balance $ 37.3 $ 33.96  
v3.24.3
Stockholders' Equity (Stock Options Vested, or Expected to Vest and Exercisable) (Details) - Stock Options [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Options outstanding, Number of options 3,578 4,842
Options vested and exercisable, Number of options 2,680  
Options vested and expected to vest, Number of options 3,557  
Options outstanding, Weighted-Average Exercise Price $ 86.03 $ 80.48
Options vested and exercisable, Weighted-Average Exercise Price Per Share 82.14  
Options vested and expected to vest, Weighted-Average Exercise Price Per Share $ 85.91  
Options outstanding, Weighted-Average Remaining Life in Years 5 years 3 months 18 days  
Options vested and exercisable, Weighted-Average Remaining Life in Years 4 years 6 months  
Options vested and expected to vest, Weighted-Average Remaining Life in Years 5 years 2 months 12 days  
Options outstanding, Aggregate Intrinsic Value $ 305,872  
Options vested and exercisable, Aggregate Intrinsic Value 239,541  
Options vested and expected to vest, Aggregate Intrinsic Value $ 304,515  
v3.24.3
Stockholders' Equity (Other Stock Option Information) (Details) - Stock Options [Member] - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Total fair value of stock options vested $ 18,527 $ 24,388 $ 18,945
Total intrinsic value of options exercised 115,198 67,203 32,709
Cash received from exercises of stock options 89,875 50,749 21,897
Excess tax benefit realized from exercise of stock options $ 17,939 $ 12,595 $ 6,472
v3.24.3
Stockholders' Equity (Summary of Activity for RSUs) (Details) - Restricted Stock Units (RSUs) [Member]
shares in Thousands
 12 Months Ended
Sep. 30, 2024
$ / shares
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Number of units, Beginning balance | shares 177
Granted, Number of units | shares 178
Vested, Number of units | shares (30)
Forfeited, Number of units | shares (7)
Number of units, Ending balance | shares 318
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares $ 93.46
Granted, Weighted-Average Grant Date Fair Value | $ / shares 139.04
Vested, Weighted-Average Grant Date Fair Value | $ / shares 88.97
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares 149.02
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares $ 118.19
v3.24.3
Stockholders' Equity (Schedule of Assumptions to Value PSUs Granted ) (Details) - Performance Restricted Stock Units [Member]
 12 Months Ended
Sep. 30, 2024
$ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Expected volatility 30.20%
Risk free interest rate 4.50%
Expected life 3 years
Grant date fair value $ 146.47
v3.24.3
Stockholders' Equity (Summary of Activity for PSUs) (Details) - Performance Restricted Stock Units [Member]
shares in Thousands
 12 Months Ended
Sep. 30, 2024
$ / shares
shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Granted, Number of units | shares 66
Forfeited, Number of units | shares (4)
Number of units, Ending balance | shares 62
Granted, Weighted-Average Grant Date Fair Value | $ / shares $ 146.47
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares 146.47
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares $ 146.47
v3.24.3
Stockholders' Equity (Stock-based Compensation Expense Recognized) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Share Based Compensation [Abstract]      
Employee stock-based compensation expense $ 33,052 $ 23,958 $ 20,109
v3.24.3
Commitments and Contingencies (Future Minimum Unconditional Purchase Obligations) (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2025 $ 676,009
2026 179,213
2027 70,212
2028 1,542
2029 5
Thereafter 88
Total $ 927,069
v3.24.3
Commitments and Contingencies (Narrative) (Details)
 12 Months Ended
Sep. 30, 2024
Officer [Member]  
Loss Contingencies [Line Items]  
Period in which payments of termination benefits required for employment terminated following change of control 2 years
v3.24.3
Segment Information (Narrative) (Details) - Segment
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Entity Wide Revenue Major Customer [Line Items]      
Number of Reportable Segments 2    
RTX Corporation [Member] | Sales [Member] | Product Concentration Risk [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Percentage of total attributable to major customer 9.00% 10.00% 11.00%
RTX Corporation [Member] | Trade Accounts Receivable [Member] | Product Concentration Risk [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Percentage of total attributable to major customer 6.00% 4.00%  
v3.24.3
Segment Information (Summary of Consolidated Net Sales and Earnings by Segment) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Segment Reporting Information [Line Items]      
Net earnings $ 3,324,249 $ 2,914,566 $ 2,382,790
Interest Expense, net (41,501) (45,147) (32,731)
Consolidated earnings before income taxes 453,971 275,768 199,898
Aerospace [Member]      
Segment Reporting Information [Line Items]      
Net earnings 2,028,618 1,768,103 1,519,322
Industrial [Member]      
Segment Reporting Information [Line Items]      
Net earnings 1,295,631 1,146,463 863,468
Operating Segments [Member] | Aerospace [Member]      
Segment Reporting Information [Line Items]      
Net earnings 2,028,618 1,768,103 1,519,322
Segment earnings (loss) 385,360 290,104 230,933
Operating Segments [Member] | Industrial [Member]      
Segment Reporting Information [Line Items]      
Net earnings 1,295,631 1,146,463 863,468
Segment earnings (loss) 229,857 161,622 82,788
Unallocated Corporate [Member]      
Segment Reporting Information [Line Items]      
Segment earnings (loss) $ (119,745) $ (130,811) $ (81,092)
v3.24.3
Segment Information (Summary of Consolidated Total Assets, Depreciation and Amortization, and Capital Expenditures by Segment) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Segment Reporting Information [Line Items]      
Consolidated total assets $ 4,368,915 $ 4,010,203 $ 3,806,446
Property, plant and equipment, net 940,715 913,094  
Depreciation and amortization 116,170 119,743 120,628
Capital expenditures 96,280 76,500 52,868
Unallocated Corporate [Member]      
Segment Reporting Information [Line Items]      
Property, plant and equipment, net 120,946 104,962 111,760
Other assets 801,967 585,490 540,386
Depreciation and amortization 11,086 8,696 9,868
Capital expenditures (1,639) (2,268) 17,216
Aerospace [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Consolidated total assets 1,936,507 1,829,410 1,773,854
Depreciation and amortization 55,305 59,880 60,176
Capital expenditures 55,989 56,913 23,253
Industrial [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Consolidated total assets 1,509,495 1,490,341 1,380,446
Depreciation and amortization 49,779 51,167 50,584
Capital expenditures $ 41,930 $ 21,855 $ 12,399
v3.24.3
Segment Information (U.S. Government Related Sales by Segment) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Entity Wide Revenue Major Customer [Line Items]      
Net sales $ 3,324,249 $ 2,914,566 $ 2,382,790
Aerospace [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales 2,028,618 1,768,103 1,519,322
Industrial [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales 1,295,631 1,146,463 863,468
Direct Sales to U.S. Government [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales 117,017 107,372 98,025
Direct Sales to U.S. Government [Member] | Aerospace [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales 107,978 99,848 93,266
Direct Sales to U.S. Government [Member] | Industrial [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales $ 9,039 $ 7,524 $ 4,759
Direct Sales to U.S. Government [Member] | Sales [Member] | Product Concentration Risk [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Percentage of attributable to revenue 3.00% 4.00% 4.00%
Indirect Sales to U.S. Government [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales $ 453,643 $ 378,675 $ 439,698
Indirect Sales to U.S. Government [Member] | Aerospace [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales 443,370 363,835 433,646
Indirect Sales to U.S. Government [Member] | Industrial [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales $ 10,273 $ 14,840 $ 6,052
Indirect Sales to U.S. Government [Member] | Sales [Member] | Product Concentration Risk [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Percentage of attributable to revenue 14.00% 13.00% 19.00%
U.S. Government Related [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales $ 570,660 $ 486,047 $ 537,723
U.S. Government Related [Member] | Aerospace [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales 551,348 463,683 526,912
U.S. Government Related [Member] | Industrial [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Net sales $ 19,312 $ 22,364 $ 10,811
U.S. Government Related [Member] | Sales [Member] | Product Concentration Risk [Member]      
Entity Wide Revenue Major Customer [Line Items]      
Percentage of attributable to revenue 17.00% 17.00% 23.00%