Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2020 | Feb. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
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 $0.001455 per share | |
Trading Symbol | WWD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,044,002 | |
Amendment Flag | false | |
Entity Central Index Key | 0000108312 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 537,619 | $ 720,355 |
Costs and expenses: | ||
Cost of goods sold | 401,640 | 534,917 |
Selling, general and administrative expenses | 56,111 | 62,045 |
Research and development costs | 31,996 | 36,846 |
Impairment of assets sold | 37,902 | |
Interest expense | 8,906 | 9,009 |
Interest income | (495) | (487) |
Other (income) expense, net | (8,123) | (21,425) |
Total costs and expenses | 490,035 | 658,807 |
Earnings before income taxes | 47,584 | 61,548 |
Income tax expense | 6,014 | 8,175 |
Net earnings | $ 41,570 | $ 53,373 |
Earnings per share: | ||
Basic earnings per share | $ 0.66 | $ 0.86 |
Diluted earnings per share | $ 0.64 | $ 0.83 |
Weighted Average Common Shares Outstanding: | ||
Basic | 62,812 | 61,991 |
Diluted | 64,892 | 64,673 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Consolidated Statements of Comprehensive Earnings | ||
Net earnings | $ 41,570 | $ 53,373 |
Other comprehensive earnings: | ||
Foreign currency translation adjustments | 21,782 | 11,153 |
Net loss on foreign currency transactions designated as hedges of net investments in foreign subsidiaries | (2,227) | (1,045) |
Taxes on changes in foreign currency translation adjustments | 1,684 | (340) |
Foreign currency translation and transactions adjustments, net of tax | 21,239 | 9,768 |
Unrealized loss on fair value adjustment of derivative instruments | (30,658) | (11,294) |
Reclassification of net realized loss on derivatives to earnings | 20,960 | 11,656 |
Taxes on changes in derivative transactions | (1,340) | 18 |
Derivative adjustments, net of tax | (11,038) | 380 |
Amortization of pension and other postretirement plan: | ||
Net prior service cost | 248 | 241 |
Net loss | 370 | 631 |
Foreign currency exchange rate changes on pension and other postretirement benefit plan liabilities | (1,697) | (1,502) |
Taxes on changes in pension and other postretirement benefit plan liability adjustments, net of foreign currency exchange rate changes | 356 | 240 |
Pension and other postretirement benefit plan adjustments, net of tax | (723) | (390) |
Total comprehensive earnings | $ 51,048 | $ 63,131 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents, including restricted cash of $1,908 and $3,497, respectively | $ 201,881 | $ 153,270 |
Accounts receivable, less allowance for uncollectible amounts of $7,499 and $8,359, respectively | 509,721 | 537,987 |
Inventories | 445,463 | 437,943 |
Income taxes receivable | 34,092 | 28,879 |
Other current assets | 55,397 | 52,786 |
Total current assets | 1,246,554 | 1,210,865 |
Property, plant and equipment, net | 986,030 | 997,415 |
Goodwill | 821,609 | 808,252 |
Intangible assets, net | 619,721 | 606,711 |
Deferred income tax assets | 13,970 | 14,658 |
Other assets | 271,621 | 265,435 |
Total assets | 3,959,505 | 3,903,336 |
Current liabilities: | ||
Current portion of long-term debt | 1,623 | 101,634 |
Accounts payable | 158,568 | 134,242 |
Income taxes payable | 11,987 | 4,662 |
Accrued liabilities | 155,932 | 151,794 |
Total current liabilities | 328,110 | 392,332 |
Long-term debt, less current portion | 745,464 | 736,849 |
Deferred income tax liabilities | 168,181 | 163,573 |
Other liabilities | 654,288 | 617,905 |
Total liabilities | 1,896,043 | 1,910,659 |
Commitments and contingencies (Note 22) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.003 per share, 10,000 shares authorized, no shares issued | ||
Common stock, par value $0.001455 per share, 150,000 shares authorized, 72,960 shares issued | 106 | 106 |
Additional paid-in capital | 244,394 | 231,936 |
Accumulated other comprehensive losses | (80,316) | (89,794) |
Deferred compensation | 9,485 | 9,222 |
Retained earnings | 2,464,373 | 2,427,905 |
Stockholders' equity | 2,638,042 | 2,579,375 |
Treasury stock at cost, 9,992 shares and 10,277 shares, respectively | (565,095) | (577,476) |
Treasury stock held for deferred compensation, at cost, 201 shares and 199 shares, respectively | (9,485) | (9,222) |
Total stockholders' equity | 2,063,462 | 1,992,677 |
Total liabilities and stockholders' equity | $ 3,959,505 | $ 3,903,336 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets: | ||
Restricted cash | $ 1,908 | $ 3,497 |
Allowance for uncollectible amounts, accounts receivable | $ 7,499 | $ 8,359 |
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 | 9,992,000 | 10,277,000 |
Treasury stock held for deferred compensation, shares | 201,000 | 199,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash flows from operating activities: | |||
Net earnings | $ 41,570 | $ 53,373 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 33,077 | 32,451 | |
Impairment of assets sold | 37,902 | ||
Net gain on sales of assets and businesses | [1] | (588) | (13,547) |
Stock-based compensation | 13,469 | 10,982 | |
Deferred income taxes | 1,332 | (47) | |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 57,001 | 37,652 | |
Unbilled receivables (contract assets) | (17,468) | (33,150) | |
Costs to fulfill a contract | (5,321) | (6,401) | |
Inventories | (2,528) | (17,065) | |
Accounts payable and accrued liabilities | 22,725 | (79,535) | |
Contract liabilities | 8,509 | (144) | |
Income taxes | 1,795 | 1,001 | |
Retirement benefit obligations | (1,317) | (1,490) | |
Other | (5,531) | 5,463 | |
Net cash provided by operating activities | 146,725 | 27,445 | |
Cash flows from investing activities: | |||
Payments for purchase of property, plant, and equipment | (7,263) | (17,232) | |
Proceeds from sale of assets | 48 | 18,809 | |
Payments for purchases of short-term investments | (2,740) | (2) | |
Net cash (used in) provided by investing activities | (9,955) | 1,575 | |
Cash flows from financing activities: | |||
Cash dividends paid | (5,102) | (10,064) | |
Proceeds from sales of treasury stock | 10,855 | 7,558 | |
Borrowings on revolving lines of credit and short-term borrowings | 74,400 | 461,633 | |
Payments on revolving lines of credit and short-term borrowings | (74,400) | (441,500) | |
Payments of long-term debt and finance lease obligations | (100,395) | (439) | |
Net cash (used in) provided by financing activities | (94,642) | 17,188 | |
Effect of exchange rate changes on cash and cash equivalents | 6,483 | 2,727 | |
Net change in cash and cash equivalents | 48,611 | 48,935 | |
Cash and cash equivalents, including restricted cash, at beginning of year | 153,270 | 99,073 | |
Cash and cash equivalents, including restricted cash, at end of period | $ 201,881 | $ 148,008 | |
[1] | Included in net gain on sale and businesses for the three-months ended December 31, 2019 was the pre-tax gain on sale of Duarte real property in the amount of $13,522. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock at Cost [Member] | Treasury Stock Held for Deferred Compensaton [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, 2019 | $ 1,726,741 | $ 106 | $ (602,098) | $ (9,382) | $ 207,120 | $ (53,235) | $ (4,955) | $ (45,116) | $ (103,306) | $ 9,382 | $ 2,224,919 |
Balance, Common Stock, shares at Sep. 30, 2019 | 72,960,000 | ||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2019 | (11,040,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, shares at Sep. 30, 2019 | (211,000) | ||||||||||
Net earnings | 53,373 | 53,373 | |||||||||
Other comprehensive earnings (loss), net of tax | 9,758 | 9,768 | 380 | (390) | 9,758 | ||||||
Cash dividends paid | (10,064) | (10,064) | |||||||||
Sales of treasury stock | 7,558 | $ 9,502 | (1,944) | ||||||||
Sales of treasury stock, shares | 226,000 | ||||||||||
Stock-based compensation | 10,982 | 10,982 | |||||||||
Purchases/transfers of stock by/to deferred compensation plan | $ (543) | 543 | |||||||||
Purchases and transfer of stock by/to deferred compensation plan, shares | (5,000) | ||||||||||
Distribution of stock from deferred compensation plan | $ 14 | (14) | |||||||||
Distribution of stock from deferred compensation plan, shares | 1,000 | ||||||||||
Balances at Dec. 31, 2019 | 1,798,603 | $ 106 | $ (592,596) | $ (9,911) | 216,158 | (43,467) | (4,575) | (45,506) | (93,548) | 9,911 | 2,268,483 |
Balance, Common Stock, shares at Dec. 31, 2019 | 72,960,000 | ||||||||||
Balance, Treasury Stock, shares at Dec. 31, 2019 | (10,814,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, shares at Dec. 31, 2019 | (215,000) | ||||||||||
Cumulative effect from adoption | ASC 842 [Member] | 255 | 255 | |||||||||
Balances at Sep. 30, 2020 | $ 1,992,677 | $ 106 | $ (577,476) | $ (9,222) | 231,936 | (40,691) | (20,457) | (28,646) | (89,794) | 9,222 | 2,427,905 |
Balance, Common Stock, shares at Sep. 30, 2020 | 72,960,000 | 72,960,000 | |||||||||
Balance, Treasury Stock, shares at Sep. 30, 2020 | (10,277,000) | (10,277,000) | |||||||||
Balance, Treasury stock held for deferred compensation, shares at Sep. 30, 2020 | (199,000) | (199,000) | |||||||||
Net earnings | $ 41,570 | 41,570 | |||||||||
Other comprehensive earnings (loss), net of tax | 9,478 | 21,239 | (11,038) | (723) | 9,478 | ||||||
Cash dividends paid | (5,102) | (5,102) | |||||||||
Sales of treasury stock | 11,370 | $ 12,381 | (1,011) | ||||||||
Sales of treasury stock, shares | 285,000 | ||||||||||
Stock-based compensation | 13,469 | 13,469 | |||||||||
Purchases/transfers of stock by/to deferred compensation plan | $ (276) | 276 | |||||||||
Purchases and transfer of stock by/to deferred compensation plan, shares | (3,000) | ||||||||||
Distribution of stock from deferred compensation plan | $ 13 | (13) | |||||||||
Distribution of stock from deferred compensation plan, shares | 1,000 | ||||||||||
Balances at Dec. 31, 2020 | $ 2,063,462 | $ 106 | $ (565,095) | $ (9,485) | $ 244,394 | $ (19,452) | $ (31,495) | $ (29,369) | $ (80,316) | $ 9,485 | $ 2,464,373 |
Balance, Common Stock, shares at Dec. 31, 2020 | 72,960,000 | 72,960,000 | |||||||||
Balance, Treasury Stock, shares at Dec. 31, 2020 | (9,992,000) | (9,992,000) | |||||||||
Balance, Treasury stock held for deferred compensation, shares at Dec. 31, 2020 | (201,000) | (201,000) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends per share | $ 0.08125 | $ 0.1625 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of presentation The Condensed Consolidated Financial Statements of Woodward, Inc. (“Woodward” or the “Company”) as of December 31, 2020 and for the three-months ended December 31, 2020 and 2019, included herein, have not been audited by an independent registered public accounting firm. These unaudited Condensed Consolidated Financial Statements reflect all normal recurring adjustments that, in the opinion of management, are necessary to present fairly Woodward’s financial position as of December 31, 2020, and the statements of earnings, comprehensive earnings, cash flows, and changes in stockholders’ equity for the periods presented herein. The results of operations for the three-months ended December 31, 2020 and 2019 are not necessarily indicative of the operating results to be expected for other interim periods or for the full fiscal year. Dollar and share amounts contained in these Condensed Consolidated Financial Statements are in thousands, except per share amounts, unless otherwise noted. The unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in Woodward’s most recent Annual Report on Form 10-K filed with the SEC and other financial information filed with the SEC. Management is required to use estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures, in the preparation of the unaudited Condensed Consolidated Financial Statements included herein. Significant estimates in these unaudited Condensed Consolidated Financial Statements include allowances for credit losses; net realizable value of inventories; variable consideration including customer rebates earned and payable and early payment discounts; warranty reserves; useful lives of property and identifiable intangible assets; the evaluation of impairments of property, intangible assets, and goodwill; the provision for income tax and related valuation reserves; the valuation of derivative instruments; 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, board members and any other eligible recipients; estimates of incremental borrowing rates used when estimating the present value of future lease payments; assumptions used when including renewal options or non-exercise of termination options in lease terms; In March 2020, the World Health Organization (“WHO”) declared the novel coronavirus ("COVID-19") outbreak a global pandemic. When combined with the various measures enacted by governments and private organizations to contain COVID-19 or slow its spread, the pandemic has adversely impacted global activity and contributed to significant declines and volatility in financial markets; and the Company has likewise been significantly impacted by the global COVID-19 pandemic. The COVID-19 pandemic could continue to have a material adverse impact on economic and market conditions and presents uncertainty and risk with respect to the Company and its performance and financial results, including estimates and assumptions used by management for the reported amount of assets and liabilities. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Dec. 31, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [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 March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The purpose of ASU 2020-04 is to provide optional guidance for a limited time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. In response to concerns about structural risks of interbank offered rates, and, in particular, the risk of cessation of the London Interbank Offered Rate (LIBOR), reference rate reform refers to a global initiative to identify alternative reference rates that are more observable or transaction-based and less susceptible to manipulation. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments in ASU 2020-04 for contract modifications by topic or industry subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a topic or an industry subtopic, the amendments in ASU 2020-04 must be applied prospectively for all eligible contract modifications for that topic or industry subtopic. Woodward is currently assessing the accounting and financial impact of reference rate reform, particularly the impact it may have on its hedging relationships, and will consider applying the optional guidance of ASU 2020-04 accordingly. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 amends ASC 740 to simplify the accounting for income taxes by removing certain exceptions for investments, intraperiod allocations and interim calculations, and adding guidance to reduce complexity in the accounting standard under the FASB’s simplification initiative. ASU 2019-12 is effective for public entities for fiscal years beginning after December 15, 2020 (fiscal year 2022 for Woodward). Upon adoption, the amendments in ASU 2019-12 should be applied on a prospective basis to all periods presented. Early adoption is permitted. Woodward is currently assessing the impact of the adoption of the new guidance and expects to adopt the new guidance under ASU 2019-12 in fiscal year 2022. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 adds a current expected credit loss (“CECL”) impairment model to U.S. GAAP that is based on expected losses rather than incurred losses. Modified retrospective adoption is required with any cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 (fiscal year 2021 for Woodward), including interim periods within the year of adoption. Woodward adopted ASU 2016-13, and all applicable amendments, on October 1, 2020 using the modified retrospective adoption method. Based on the nature of the Company’s financial instruments included within the scope of this standard, the adoption did not have a material effect on the Condensed Consolidated Financial Statements. As a result of the adoption of ASU 2016-13, Woodward will utilize current and historical collection data, and will continue to monitor economic conditions in order to assess and determine expected credit losses on a prospective basis. See details of the Company’s allowance for uncollectible amounts and change in expected credit losses for billed receivables and unbilled receivables (contract assets) at Note 3, Revenue |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 3. Revenue Sales of Products Revenue from manufactured products; maintenance, repair and overhaul (“MRO”); and services represented 87%, 12%, and 1%, respectively, of Woodward’s net sales for the three-months ended December 31, 2020, and for the three-months ended December 31, 2019. The amount of revenue recognized as point in time or over time follows: Three-Months Ended December 31, 2020 Three-Months Ended December 31, 2019 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Point in time $ 106,967 $ 154,195 $ 261,162 $ 187,515 $ 167,942 $ 355,457 Over time 214,700 61,757 276,457 286,410 78,488 364,898 Total net sales $ 321,667 $ 215,952 $ 537,619 $ 473,925 $ 246,430 $ 720,355 Accounts Receivable Accounts receivable consisted of the following: December 31, 2020 September 30, 2020 Billed receivables Trade accounts receivable $ 265,732 $ 307,914 Other (Chinese financial institutions) 46,896 56,640 Total billed receivables 312,628 364,554 Current unbilled receivables (contract assets) 204,592 181,792 Less: Allowance for uncollectible amounts (7,499 ) (8,359 ) Total accounts receivable, net $ 509,721 $ 537,987 As of December 31, 2020, “Other assets” on the Condensed Consolidated Balance Sheets includes $12,053 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $16,751 as of September 30, 2020. Unbilled receivables not expected to be invoiced and collected within a period of twelve months are primarily attributable to customer delays for deliveries on firm orders in the Aerospace segment due to the impacts of the COVID-19 pandemic. Accounts receivable in Woodward’s Condensed Consolidated Financial Statements represent the net amount expected to be collected, and an allowance for uncollectible amounts related to credit losses is established based on expected losses in accordance with FASB ASC Topic 326, “Financial Instruments – Credit Losses” The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following: Three-Months Ended December 31, 2020 Balance, beginning $ 8,359 Charged to costs and expenses 88 Deductions (1,171 ) Other additions 1 223 Balance, ending $ 7,499 (1) Includes effects of foreign exchange rate changes during the period. Contract liabilities Contract liabilities consisted of the following: December 31, 2020 September 30, 2020 Current Noncurrent Current Noncurrent Deferred revenue from material rights from GE joint venture formation $ 4,242 $ 232,882 $ 4,066 $ 234,240 Deferred revenue from advanced invoicing and/or prepayments from customers 4,182 1,338 3,239 85 Liability related to customer supplied inventory 16,885 — 14,955 — Deferred revenue from material rights related to engineering and development funding 4,076 136,804 2,360 132,317 Net contract liabilities $ 29,385 $ 371,024 $ 24,620 $ 366,642 Woodward recognized revenue of $6,528 in the three-months ended December 31, 2020 from contract liabilities balances recorded as of October 1, 2020, compared to $3,970 in the three-months ended December 31, 2019 from contract liabilities balances recorded as of October 1, 2019. 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 December 31, 2020 was $1,274,218, compared to $1,454,406 as of September 30, 2020, the majority of which relate in both periods relate to Woodward’s Aerospace segment. Woodward expects to recognize almost all of these remaining performance obligations within two years after December 31, 2020. Remaining performance obligations related to material rights that have not yet been recognized in revenue as of December 31, 2020 was $464,296, compared to $465,668 as of September 30, 2020, of which $8,952 is expected to be recognized in the remainder of fiscal year 2021, $10,625 is expected to be recognized in fiscal year 2022, and the balance is expected to be recognized thereafter. Woodward expects to recognize revenue from performance obligations related to material rights over the life of the underlying programs, which may be as long as forty years. Disaggregation of Revenue Woodward designs, produces and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in markets throughout the world. Woodward reports financial results for each of its Aerospace and Industrial reportable segments. Woodward further disaggregates its revenue from contracts with customers by primary market and by geographical area as Woodward believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Revenue by primary market for the Aerospace reportable segment was as follows: Three-Months Ended December 31, 2020 2019 Commercial OEM $ 76,081 $ 158,666 Commercial aftermarket 65,515 125,928 Defense OEM 131,263 140,926 Defense aftermarket 48,808 48,405 Total Aerospace segment net sales $ 321,667 $ 473,925 Revenue by primary market for the Industrial reportable segment was as follows: Three-Months Ended December 31, 2020 2019 Reciprocating engines $ 164,922 $ 174,653 Industrial turbines 51,030 51,500 Renewables 1 — 20,277 Total Industrial segment net sales $ 215,952 $ 246,430 (1) Sales in the renewables market were discontinued as of May 1, 2020 following the closing of the divestiture of the renewable power systems business and other related businesses (as described more fully in Note 10, Sale of businesses , and defined therein as the “disposal group”) . The customers who account for approximately 10% or more of net sales of each of Woodward’s reportable segments for the three-months ended December 31, 2020 are as follows: Customer Aerospace The Boeing Company, General Electric Company, Raytheon Technologies Industrial Rolls-Royce PLC, Weichai Westport, General Electric Company Net sales by geographic area, as determined based on the location of the customer, were as follows: Three-Months Ended December 31, 2020 Three-Months Ended December 31, 2019 Aerospace Industrial Consolidated Aerospace Industrial Consolidated United States $ 257,546 $ 43,153 $ 300,699 $ 363,912 $ 51,092 $ 415,004 Germany 7,506 29,642 37,148 17,278 51,438 68,716 Europe, excluding Germany 20,940 43,068 64,008 38,987 50,501 89,488 China 8,964 65,983 74,947 10,212 53,876 64,088 Asia, excluding China 4,480 28,635 33,115 6,981 31,912 38,893 Other countries 22,231 5,471 27,702 36,555 7,611 44,166 Total net sales $ 321,667 $ 215,952 $ 537,619 $ 473,925 $ 246,430 $ 720,355 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2020 | |
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 and restricted stock. The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share: Three-Months Ended December 31, 2020 2019 Numerator: Net earnings $ 41,570 $ 53,373 Denominator: Basic shares outstanding 62,812 61,991 Dilutive effect of stock options and restricted stock 2,080 2,682 Diluted shares outstanding 64,892 64,673 Income per common share: Basic earnings per share $ 0.66 $ 0.86 Diluted earnings per share $ 0.64 $ 0.83 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. Three-Months Ended December 31, 2020 2019 Options 587 653 Weighted-average option price $ 104.99 $ 104.40 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: Three-Months Ended December 31, 2020 2019 Weighted-average treasury stock shares held for deferred compensation obligations 200 213 |
Leases
Leases | 3 Months Ended |
Dec. 31, 2020 | |
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. Lease-related assets and liabilities follows: Classification on the Condensed Consolidated Balance Sheets December 31, 2020 September 30, 2020 Assets: Operating lease assets Other assets $ 20,061 $ 18,918 Finance lease assets Property, plant and equipment, net 1,094 1,201 Total lease assets 21,155 20,119 Current liabilities: Operating lease liabilities Accrued liabilities 4,950 4,925 Finance lease liabilities Current portion of long-term debt 1,623 1,634 Noncurrent liabilities: Operating lease liabilities Other liabilities 15,683 14,569 Finance lease liabilities Long-term debt, less current portion 802 1,173 Total lease liabilities $ 23,058 $ 22,301 During the three-months ended December 31, 2019, Woodward determined that the approved plan to divest of the renewable power systems business and other related businesses (as described more fully in Note 10, Sale of businesses Lease-related expenses were as follows: Three-Months Ended Three-Months Ended December 31, 2020 December 31, 2019 Operating lease expense $ 1,553 $ 1,519 Amortization of finance lease assets 126 147 Interest on finance lease liabilities 18 20 Variable lease expense 322 307 Short-term lease expense 82 175 Sublease income 1 (168 ) (125 ) Total lease expense $ 1,933 $ 2,043 (1) Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois. Lease-related supplemental cash flow information was as follows: Three-Months Ended December 31, 2020 Three-Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1,151 $ 1,254 Operating cash flows for finance leases 18 20 Financing cash flows for finance leases 396 439 Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases 1,130 3,540 Finance leases 12 1,211 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 three 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 December 31, 2020. 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. Revenue from contracts with customers that included embedded operating leases, which is included in “Net sales” at the Condensed Consolidated Statements of Earnings, was $1,798 for the three-months ended December 31, 2020 and $1,564 for the three-months ended December 31, 2019. The carrying amount of property, plant and equipment December 31, 2020 September 30, 2020 Property, plant and equipment leased to others through embedded leasing arrangements $ 78,176 $ 76,655 Less accumulated depreciation (31,714 ) (29,819 ) Property, plant and equipment leased to others through embedded leasing arrangements, net $ 46,462 $ 46,836 |
Joint Venture
Joint Venture | 3 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Joint Venture | Note 6. Joint venture On January 4, 2016, Woodward and General Electric Company (“GE”), acting through its GE Aviation business unit, consummated the formation of a strategic joint venture between Woodward and GE (the “JV”) to develop, manufacture and support fuel systems for specified existing and all future GE commercial aircraft engines that produce thrust in excess of fifty thousand pounds. Unamortized deferred revenue from material rights in connection with the JV formation included: December 31, 2020 September 30, 2020 Accrued liabilities $ 4,242 $ 4,066 Other liabilities 232,882 234,240 Amortization of the deferred revenue (material right) recognized as an increase to sales was $1,182 for the three-months ended December 31, 2020, and $1,708 for the three-months ended December 31, 2019. Other income related to Woodward’s equity interest in the earnings of the JV was as follows: Three-Months Ended December 31, 2020 2019 Other income $ 2,386 $ 3,212 Cash distributions to Woodward from the JV, recognized in Net cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows, were as follows: Three-Months Ended December 31, 2020 2019 Cash distributions $ 3,500 $ 3,000 Net sales to the JV were as follows: Three-Months Ended December 31, 2020 2019 Net sales 1 $ 10,059 $ 14,878 (1) Net sales included a reduction of $4,420 for the three-months ended December 31, 2020 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $7,234 for the three-months ended December 31, 2019. The Condensed 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: December 31, 2020 September 30, 2020 Accounts receivable $ 2,892 $ 3,062 Accounts payable 1,478 1,502 Other assets 8,009 9,123 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. Woodward’s contract liabilities classified as “Other liabilities” included amounts invoiced to the JV as of December 31, 2020 of $70,697 compared to $70,618 as of fiscal year ended September 30, 2020. Woodward’s costs to fulfill a contract included in “Other assets” related to JV activities were $70,697 as of December 31, 2020 and $70,618 as of fiscal year ended September 30, 2020. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Dec. 31, 2020 | |
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 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 as defined by the U.S. GAAP fair value hierarchy. At December 31, 2020 At September 30, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Cash $ 188,104 $ — $ — $ 188,104 $ 112,817 $ — $ — $ 112,817 Investments in term deposits with foreign banks 13,777 — — 13,777 40,453 — — 40,453 Equity securities 28,526 — — 28,526 25,381 — — 25,381 Total financial assets $ 230,407 $ — $ — $ 230,407 $ 178,651 $ — $ — $ 178,651 Financial liabilities: Cross-currency interest rate swaps $ — $ 83,137 $ — $ 83,137 $ — $ 51,387 $ — $ 51,387 Total financial liabilities $ — $ 83,137 $ — $ 83,137 $ — $ 51,387 $ — $ 51,387 Investments in term deposits with foreign banks: Woodward’s foreign 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 term deposits with foreign banks 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 Condensed Consolidated Statements of Earnings. The trading securities are included in “Other assets” in the Condensed 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. In the Condensed Consolidated Balance Sheets, the swaps in an asset position are included in “Other assets,” and swaps in a liability position are included in “Other liabilities”. 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. 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 Condensed Consolidated Balance Sheets were as follows: At December 31, 2020 At September 30, 2020 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 $ 13,579 $ 10,941 $ 13,413 $ 11,846 Note receivable from sale of disposal group 2 6,341 6,111 6,341 6,061 Investments in short-term time deposits 2 16,537 16,521 13,678 13,671 Liabilities: Long-term debt 2 $ 853,830 $ 749,172 $ 935,610 $ 840,654 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 a new campus at 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 Woodward 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 1.0% at December 31, 2020 and 1.2% at September 30, 2020. In connection with the sale of the renewable power systems business and other related businesses (as described more fully in Note 10, Sale of businesses 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 were 3.9% at December 31, 2020 and 4.4% at September 30, 2020. 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 Woodward 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 rate used to estimate the fair value of long-term debt was 1.3% at December 31, 2020 and 1.5% at September 30, 2020. Woodward does not have expected credit losses related to any financial assets that are not required to be remeasured at fair value. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedges [Abstract] | |
Derivative Instruments and Hedging Activities | Note 8. Derivative instruments and hedging activities Derivative instruments not designated or qualifying as hedging instruments In May 2018, Woodward entered into cross-currency interest rate swap agreements that synthetically converted $167,420 of floating-rate debt under Woodward’s then existing revolving credit agreement to Euro denominated floating-rate debt in conjunction with the L’Orange acquisition (the “Floating-Rate Cross-Currency Swap”). Also in May 2018, Woodward entered into cross-currency interest rate swap agreements that synthetically converted an aggregate principal amount of $400,000 of fixed-rate debt associated with the 2018 Note Purchase Agreement (as defined in Note 16, Credit Facilities, short-term borrowings and long-term debt Credit Facilities, short-term borrowings and long-term debt In May 2020, Woodward terminated and settled its Floating-Rate Cross-Currency Swap and Fixed-Rate Cross-Currency Swaps and entered into a new 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 and Woodward’s 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 Condensed Consolidated Statements of Earnings. As of December 31, 2020, the total notional value of the 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps was $37,500 and $400,000, respectively. See Note 7, Financial Instruments and fair value measurements Derivatives instruments in fair value hedging relationships Concurrent with the entry into the Floating-Rate Cross-Currency Swap, a corresponding Euro denominated intercompany loan receivable with identical terms and notional amount as the underlying Euro denominated floating-rate debt, with a reciprocal cross-currency interest rate swap, was entered into by Woodward Barbados Financing SRL (“Barbados”), a wholly owned subsidiary of Woodward, and is designated as a fair value hedge under the criteria prescribed in ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). The objective of the derivative instrument is to hedge against the foreign currency exchange risk attributable to the spot remeasurement of the Euro denominated intercompany loan. In May 2020, Woodward settled the Euro denominated intercompany loan receivable with identical terms and notional value to the Floating-Rate Cross-Currency Swap and reciprocal intercompany cross-currency interest rate swap. The fair value hedge designated on these instruments was discontinued at the date of settlement. Concurrent with settlement of the Floating-Rate Cross-Currency Swap and discontinuation of the previous fair value hedging relationship, 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, was 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 is 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 Condensed 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 conjunction with the entry into the Fixed-Rate Cross-Currency Swaps, five corresponding intercompany loans receivable, with identical terms and amounts of each tranche of the underlying aggregate principal amount of $400,000 of fixed-rate debt, and reciprocal cross-currency interest rate swaps were entered into by Barbados, which 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 Euro denominated intercompany loans over a fifteen-year period. In May 2020, Woodward settled the Euro denominated intercompany loans receivable with identical terms and notional value to the Fixed-Rate Cross-Currency Swaps and reciprocal cross-currency interest rate swaps. The cash flow hedges designated on these instruments were discontinued at the date of settlement. Concurrent with settlement of the Fixed-Rate Cross-Currency Swaps and the discontinuation of the previous cash flow hedging relationships, five corresponding 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 were entered into by Euro Barbados, which 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 Condensed 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 $2,227 for the three-months ended December 31, 2020, compared to net foreign exchange losses of $1,045 for the three-months ended December 31, 2019. Impact of derivative instruments designated as qualifying hedging instruments The following table discloses the impact of derivative instruments designated as qualifying hedging instruments on Woodward’s Condensed Consolidated Statements of Earnings: Three-Months Ended December 31, 2020 Derivatives in: Location Amount of (Income) Expense Recognized in Earnings on Derivative Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings Cross currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ 1,850 $ 1,663 $ 1,850 Cross currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses 19,110 28,995 19,110 $ 20,960 $ 30,658 $ 20,960 Three-Months Ended December 31, 2019 Derivatives in: Location Amount of (Income) Expense Recognized in Earnings on Derivative Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings Cross currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ 2,276 $ 3,598 $ 2,683 Cross currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses 8,991 7,696 8,991 Treasury lock agreement designated as cash flow hedge Interest expense (18 ) — (18 ) $ 11,249 $ 11,294 $ 11,656 The remaining unrecognized gains and losses in Woodward’s Condensed Consolidated Balance Sheets associated with derivative instruments that were previously entered into by Woodward, which are classified in accumulated OCI, were net losses of $30,830 as of December 31, 2020 and $21,132 as of September 30, 2020. |
Supplemental Statement of Cash
Supplemental Statement of Cash Flows Information | 3 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Statement of Cash Flows Information | Note 9. Supplemental statement of cash flows information Three-Months Ended December 31, 2020 2019 Interest paid, net of amounts capitalized $ 12,280 $ 10,749 Income taxes paid 4,002 7,086 Income tax refunds received — 12 Non-cash activities: Purchases of property, plant and equipment on account 1,699 2,551 Impact of the adoption of ASC 842 — 255 |
Sale of businesses
Sale of businesses | 3 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Sale of businesses | Note 10. Sale of businesses In fiscal year 2020, Woodward’s board of directors (“the Board”) approved a plan to divest Woodward’s renewable power systems business, protective relays business, and other businesses within the Company’s Industrial segment (collectively, the “disposal group”). Woodward determined that the approved plan to divest the disposal group represented a triggering event requiring (i) the net assets of the disposal group to be classified as held for sale and (ii) the long-lived assets attributable to the disposal group be assessed for impairment. Given the facts and circumstances at that time, Woodward determined that the value of the long-lived assets of the disposal group, including goodwill, intangible assets, ROU assets and property, plant, and equipment, were not recoverable and a $22,900 non-cash impairment charge was recorded during fiscal year 2020. The non-cash impairment charge removed all the goodwill, intangible assets, ROU assets and property, plant, and equipment associated with the disposal group from the Condensed Consolidated Balance Sheets as of December 31, 2019. Further, on the approval of the divestiture plan and subsequent marketing of the disposal group, Woodward determined that based on the current market conditions, the carrying value of the disposal group’s remaining held for sale net assets exceeded the fair value. As a result, Woodward recorded a valuation allowance to reduce the carrying value of the net assets of the disposal group to their fair value. The non-cash impairment charge associated with the long-lived assets, and related valuation allowance for the other remaining net assets attributable to the disposal group, resulted in a total impairment charge of $37,902. |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2020 | |
Inventory Net [Abstract] | |
Inventories | Note 11. Inventories December 31, September 30, 2020 2020 Raw materials $ 124,900 $ 123,626 Work in progress 93,652 92,934 Component parts (1) 266,018 255,980 Finished goods 66,712 66,889 Customer supplied inventory 16,885 14,955 On-hand inventory for which control has transferred to the customer (122,704 ) (116,441 ) $ 445,463 $ 437,943 (1) Component parts include items that can be sold separately as finished goods or included in the manufacture of other products. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 3 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment Net [Abstract] | |
Property, Plant and Equipment | Note 12. Property, plant, and equipment December 31, September 30, 2020 2020 Land and land improvements $ 83,606 $ 83,095 Buildings and building improvements 553,274 551,540 Leasehold improvements 19,577 18,610 Machinery and production equipment 786,343 776,884 Computer equipment and software 124,290 123,903 Office furniture and equipment 41,825 41,177 Other 19,849 19,814 Construction in progress 36,034 36,367 1,664,798 1,651,390 Less accumulated depreciation (678,768 ) (653,975 ) Property, plant, and equipment, net $ 986,030 $ 997,415 During the three-months ended December 31, 2019, the Company closed on the sale of one of two parcels of real property at Woodward’s former Duarte operations and recorded a pre-tax gain on sale of assets of $13,522. During the three-months ended December 31, 2019, Woodward determined that the approved plan to divest of the disposal group represented a triggering event requiring the long-lived assets attributable to the disposal group be assessed for impairment. Given the facts and circumstances at that time, Woodward determined that the remaining value of the plant, property and equipment of the disposal group was not recoverable and a $13,421 non-cash impairment charge was recorded during fiscal year 2020. For the three-months ended December 31, 2020 and 2019, Woodward had depreciation expense as follows: Three-Months Ended December 31, 2020 2019 Depreciation expense $ 22,608 $ 22,546 |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 13. Goodwill September 30, 2020 Effects of Foreign Currency Translation December 31, 2020 Aerospace $ 455,423 $ — $ 455,423 Industrial 352,829 13,357 366,186 Consolidated $ 808,252 $ 13,357 $ 821,609 Woodward tests goodwill for impairment during the fourth quarter of each fiscal year, and at any time there is an indication goodwill is more-likely-than-not impaired, commonly referred to as triggering events. Woodward’s fourth quarter of fiscal year 2020 impairment test resulted in no impairment. During the three-months ended December 31, 2019, Woodward determined that the approved plan to divest of the disposal group represented a triggering event requiring the long-lived assets attributable to the disposal group be assessed for impairment. Given the facts and circumstances at the time, Woodward determined that the remaining value of the goodwill of the disposal group was not recoverable, and an $8,640 non-cash impairment charge was recorded during fiscal year 2020. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Dec. 31, 2020 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible Assets, Net | Note 14. Intangible assets, net December 31, 2020 September 30, 2020 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 $ (199,985 ) $ 81,698 $ 281,683 $ (196,520 ) $ 85,163 Industrial 447,664 (63,492 ) 384,172 429,249 (57,045 ) 372,204 Total $ 729,347 $ (263,477 ) $ 465,870 $ 710,932 $ (253,565 ) $ 457,367 Intellectual property: Aerospace $ — $ — $ — $ — $ — $ — Industrial 15,816 (15,724 ) 92 15,778 (15,640 ) 138 Total $ 15,816 $ (15,724 ) $ 92 $ 15,778 $ (15,640 ) $ 138 Process technology: Aerospace $ 76,370 $ (64,760 ) $ 11,610 $ 76,371 $ (63,956 ) $ 12,415 Industrial 94,506 (23,711 ) 70,795 90,945 (22,300 ) 68,645 Total $ 170,876 $ (88,471 ) $ 82,405 $ 167,316 $ (86,256 ) $ 81,060 Other intangibles: Aerospace $ — $ — $ — $ — $ — $ — Industrial 245 (212 ) 33 235 (183 ) 52 Total $ 245 $ (212 ) $ 33 $ 235 $ (183 ) $ 52 Intangible asset with indefinite life: Tradename: Aerospace $ — $ — $ — $ — $ — $ — Industrial 71,321 — 71,321 68,094 — 68,094 Total $ 71,321 $ — $ 71,321 $ 68,094 $ — $ 68,094 Total intangibles: Aerospace $ 358,053 $ (264,745 ) $ 93,308 $ 358,054 $ (260,476 ) $ 97,578 Industrial 629,552 (103,139 ) 526,413 647,738 (138,605 ) 509,133 Consolidated Total $ 987,605 $ (367,884 ) $ 619,721 $ 1,005,792 $ (399,081 ) $ 606,711 Woodward tests the indefinite lived tradename intangible asset for impairment during the fourth quarter of each fiscal year, or at any time there is an indication the indefinite lived tradename intangible asset is more-likely-than-not impaired commonly referred to as triggering events. Woodward’s fourth quarter of fiscal year 2020 impairment test resulted in no impairment. During the three-months ended December 31, 2019, Woodward determined that the approved plan to divest of the disposal group represented a triggering event requiring the long-lived assets attributable to the disposal group be assessed for impairment. Given the facts and circumstances at that time, Woodward determined that the remaining value of the intangible assets of the disposal group was not recoverable, and a $200 non-cash impairment charge was recorded during fiscal year 2020. For the three-months ended December 31, 2020 and 2019, Woodward recorded amortization expense associated with intangibles of the following: Three-Months Ended December 31, 2020 2019 Amortization expense $ 10,469 $ 9,905 Future amortization expense associated with intangibles is expected to be: Year Ending September 30: 2021 (remaining) $ 31,888 2022 39,683 2023 38,632 2024 34,880 2025 29,665 Thereafter 373,652 $ 548,400 |
Credit Facilities, Short-term B
Credit Facilities, Short-term Borrowings and Long-term Debt | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facilities, Short-term Borrowings and Long-term Debt | Note 15. Credit facilities, short-term borrowings and long-term debt 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 (the “Revolving Credit Agreement”). The Revolving Credit Agreement provides for the option to increase available borrowings up to $1,500,000, subject to lenders’ participation. Borrowings under the 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 LIBOR plus 0.875% to 1.75%. The Revolving Credit Agreement matures on June 19, 2024. Under the Revolving Credit Agreement, there were no borrowings outstanding as of December 31, 2020 and September 30, 2020. 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. There were no borrowings outstanding on Woodward’s foreign lines of credit and foreign overdraft facilities as of December 31, 2020 and September 30, 2020. Long-term debt On November 15, 2020, Woodward paid the entire principal balance of $100,000 on its Series G and J Notes using cash on hand and proceeds from borrowings under its existing revolving credit facility. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 16. Accrued liabilities December 31, September 30, 2020 2020 Salaries and other member benefits $ 40,392 $ 50,850 Warranties 21,079 18,972 Interest payable 5,501 15,281 Accrued retirement benefits 3,063 3,051 Restructuring charges 1,596 3,395 Taxes, other than income 26,432 13,925 Net current contract liabilities (Note 3) 29,385 24,620 Other 28,484 21,700 $ 155,932 $ 151,794 Warranties Provisions of Woodward’s sales agreements include product warranties customary to these types of agreements. Accruals are established for specifically identified warranty issues that are probable to result in future costs. Warranty costs are accrued as revenue is recognized on a non-specific basis whenever past experience indicates a normal and predictable pattern exists. Changes in accrued product warranties were as follows: Three-Months Ended December 31, 2020 2019 Warranties, beginning of period $ 18,972 $ 27,309 Expense, net of recoveries 1,389 (4,333 ) Reductions for settlement of previous warranty liabilities 392 (4,277 ) Foreign currency exchange rate changes 326 228 Warranties, end of period $ 21,079 $ 18,927 Restructuring charges During the third quarter of fiscal year 2020, the Company committed to a plan of termination (the “Termination Plan”) in response to the ongoing global economic challenges resulting from the COVID-19 pandemic and its impact on the Company’s business. The Termination Plan involved the termination and/or furlough of employees and contractors at certain of the Company’s operating facilities, primarily in the United States. As a result of the Termination Plan, the Company incurred $23,673 of restructuring charges related to employee severance and benefits costs as of September 30, 2020. All of the restructuring charges recorded during the fiscal year ended September 30, 2020 were recorded as nonsegment expenses. The summary of activity in accrued restructuring charges during the three-months ended December 31, 2020 and December 31, 2019 are as follows: Period Activity Balances as of September 30, 2020 Charges (reductions) Cash receipts (payments) Foreign currency exchange rate changes Non-cash activity Balances as of December 31, 2020 Workforce management costs associated with: COVID-19 pandemic $ 3,395 $ — $ (1,742 ) $ 45 $ (102 ) $ 1,596 Total $ 3,395 $ — $ (1,742 ) $ 45 $ (102 ) $ 1,596 Period Activity Balances as of September 30, 2019 Charges (reductions) Cash receipts (payments) Foreign currency exchange rate changes Non-cash activity Balances as of December 31, 2019 Workforce management costs associated with: Duarte plant relocation $ 440 $ — $ (228 ) $ — $ — $ 212 Industrial turbomachinery business realignment 67 — — — (24 ) 43 Total $ 507 $ — $ (228 ) $ — $ (24 ) $ 255 |
Other Liabilities
Other Liabilities | 3 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Noncurrent [Abstract] | |
Other Liabilities | Note 17. Other liabilities December 31, September 30, 2020 2020 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 120,313 $ 114,013 Total unrecognized tax benefits 10,602 10,230 Noncurrent income taxes payable 18,322 18,322 Deferred economic incentives (1) 8,852 9,105 Cross-currency swap derivative liability 83,137 51,387 Noncurrent operating lease liabilities 15,683 14,569 Net noncurrent contract liabilities 371,024 366,642 Other 26,355 33,637 $ 654,288 $ 617,905 (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. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 3 Months Ended |
Dec. 31, 2020 | |
Nonoperating Income Expense [Abstract] | |
Other (Income) Expense, Net | Note 18. Other (income) expense, net Three-Months Ended December 31, 2020 2019 Equity interest in the earnings of the JV (Note 6) $ (2,386 ) $ (3,212 ) Net gain on sales of assets and businesses (1) (588 ) (13,547 ) Rent income (350 ) (251 ) Net gain on investments in deferred compensation program (983 ) (1,244 ) Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense (3,650 ) (3,047 ) Other (166 ) (124 ) $ (8,123 ) $ (21,425 ) (1) Included in net gain on sale and businesses for the three-months ended December 31, 2019 was the pre-tax gain on sale of Duarte real property in the amount of $13,522. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 19. Income taxes The determination of the estimated annual effective tax rate is based upon a number of significant estimates and judgments. In addition, as a global commercial enterprise, Woodward’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, changes in the estimate of the amount of undistributed foreign earnings that Woodward considers indefinitely reinvested, issuance of future guidance, interpretation, and rule-making, and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. The following table sets forth the tax expense and the effective tax rate for Woodward’s earnings before income taxes: Three-Months Ended December 31, 2020 2019 Earnings before income taxes $ 47,584 $ 61,548 Income tax expense 6,014 8,175 Effective tax rate 12.6 % 13.3 % The decrease in the effective tax rate for the three-months ended December 31, 2020 compared to the three-months ended December 31, 2019 is primarily attributable to the impact of decreased projected full-year earnings for fiscal year 2021 relative to the expected tax benefits from the research credit, net excess income tax benefit from stock-based compensation, and various state income tax credits. This decrease was partially offset by the tax benefit associated with the impairment of assets held for sale in the first quarter of fiscal year 2020 that did not repeat in the current quarter and increased taxes on combined foreign earnings. Gross unrecognized tax benefits were $ 10,194 as of December 31, 2020 , and $ 9,851 as of September 30, 2020 . At December 31, 2020 , the amount of the liability for unrecognized tax benefits that, if recognized, would impact Woodward’s effective tax rate was $ 4,948 . At this time, Woodward believes it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $ 1,884 in the next twelve months due to the completion of review by tax authorities, lapses of statutes, and the settlement of tax positions . Woodward ’s tax expense includes accru al s for potential interest and penalties related to unrecognized tax benefits and all other interest and penalties related to tax payments. 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 2018 and thereafter. Woodward’s fiscal years remaining open to examination for significant U.S. state income tax jurisdictions include fiscal years 2016 and thereafter. Woodward’s fiscal years remaining open to examination in significant foreign jurisdictions include 2016 and thereafter. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [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. The amount of expense associated with defined contribution plans was as follows: Three-Months Ended December 31, 2020 2019 Company costs $ 8,036 $ 8,704 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. U.S. GAAP requires that, for obligations outstanding as of September 30, 2020, the funded status reported in interim periods shall be the same asset or liability recognized in the previous year end statement of financial position adjusted for (a) subsequent accruals of net periodic benefit cost that exclude the amortization of amounts previously recognized in other comprehensive income (for example, subsequent accruals of service cost, interest cost, and return on plan assets) and (b) contributions to a funded plan or benefit payments. The components of the net periodic retirement pension costs recognized are as follows: Three-Months Ended December 31, United States Other Countries Total 2020 2019 2020 2019 2020 2019 Service cost $ 432 $ 415 $ 729 $ 710 $ 1,161 $ 1,125 Interest cost 1,239 1,398 333 321 1,572 1,719 Expected return on plan assets (3,536 ) (3,087 ) (602 ) (832 ) (4,138 ) (3,919 ) Amortization of: Net actuarial loss 135 358 228 261 363 619 Prior service cost 242 234 6 6 248 240 Net periodic retirement pension (benefit) cost $ (1,488 ) $ (682 ) $ 694 $ 466 $ (794 ) $ (216 ) Contributions paid $ — $ — $ 543 $ 1,131 $ 543 $ 1,131 The components of net periodic retirement pension costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net” in the Condensed Consolidated Statements of Earnings. The interest cost component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings. The components of the net periodic other postretirement benefit costs recognized are as follows: Three-Months Ended December 31, 2020 2019 Service cost $ — $ 1 Interest cost 150 195 Amortization of: Net actuarial loss 7 12 Prior service cost (benefit) — 1 Net periodic other postretirement cost $ 157 $ 209 Contributions paid $ 38 $ 345 The components of net periodic other postretirement benefit costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net” in the Condensed Consolidated Statements of Earnings. The interest cost component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings. The amount of cash contributions made to these plans in any year is dependent upon a number of factors, including minimum funding requirements in the jurisdictions in which Woodward operates and arrangements made with trustees of certain foreign plans. As a result, the actual funding in fiscal year 2021 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2021 will be as follows: Retirement pension benefits: United States $ — United Kingdom 512 Japan — Germany 868 Other postretirement benefits 3,075 Multiemployer defined benefit plans Woodward operates multiemployer defined benefit plans for certain employees in both the Netherlands and Japan. The amounts of contributions associated with the multiemployer defined benefit plans were as follows: Three-Months Ended December 31, 2020 2019 Company contributions $ 68 $ 70 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 21. Stockholders’ equity Stock repurchase program In the first quarter of fiscal year 2017, the Board terminated the Company’s prior stock repurchase program and replaced it with a new 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 ended in November 2019 (the “2017 Authorization”). Effective upon the expiration of the 2017 Authorization in November 2019, Woodward’s board of directors approved a new 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 will end in 2022 (the “2019 Authorization”). Stock-based compensation Provisions governing outstanding stock option awards are included in the 2017 Omnibus Incentive Plan, as amended from time to time (the “2017 Plan”) and the 2006 Omnibus Incentive Plan (the “2006 Plan”), as applicable. 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 compensation committee of the Board (the “Committee”), including, but not limited to, the power to determine the recipients of awards and the terms of those awards. On January 29, 2020, Woodward’s stockholders approved an additional 1,000 shares of Woodward’s common stock to be made available for future grants. Under the 2017 Plan, there were approximately 1,228 shares of Woodward’s common stock available for future grants as of December 31, 2020 and 1,972 shares as of September 30, 2020. Stock options Woodward believes that stock options align the interests of its employees and directors with the interests of its stockholders. 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. Three-Months Ended December 31, 2020 2019 Weighted-average exercise price per share $ 81.06 $ 104.82 Weighted-average grant date market value of Woodward stock $ 81.06 $ 104.82 Expected term (years) 6.5 - 8.7 6.4 - 8.7 Estimated volatility 33.3% - 36.1% 25.7% - 30.1% Estimated dividend yield 0.3% - 0.4% 0.6% Risk-free interest rate 0.4% - 0.6% 1.6% - 1.7% The following is a summary of the activity for stock option awards during the three-months ended December 31, 2020: Three-Months Ended December 31, 2020 Number of options Weighted-Average Exercise Price per Share Options, beginning balance 5,443 $ 62.00 Options granted 747 81.06 Options exercised (286 ) 39.82 Options forfeited (3 ) 87.38 Options, ending balance 5,901 65.47 Changes in non-vested stock options during the three-months ended December 31, 2020 were as follows: Three-Months Ended December 31, 2020 Number of options Weighted-Average Grant Date Fair Value per Share Non-vested options outstanding, beginning balance 2,078 $ 24.69 Options granted 747 27.73 Options vested (652 ) 25.81 Options forfeited (3 ) 25.18 Non-vested options outstanding, ending balance 2,170 25.40 Information about stock options that have vested, or are expected to vest, and are exercisable at December 31, 2020 was as follows: Number Weighted-Average Exercise Price Weighted-Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 5,901 $ 65.47 6.4 $ 330,818 Options vested and exercisable 3,731 55.73 5.0 245,492 Options vested and expected to vest 5,797 65.20 6.3 326,577 Stock-based compensation expense Woodward recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Pursuant to form stock option 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 stock option 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. At December 31, 2020, there was approximately $16,759 of total unrecognized compensation expense related to non-vested stock-based compensation arrangements, including both stock options and restricted stock awards. The pre-vesting forfeiture rates for purposes of determining stock-based compensation expense recognized were estimated to be 0% for members of the Board and 7.3% for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 2.3 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 22. Commitments and contingencies 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 Condensed 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 such officers. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2020 | |
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: Three-Months Ended December 31, 2020 2019 Segment external net sales: Aerospace $ 321,667 $ 473,925 Industrial 215,952 246,430 Total consolidated net sales $ 537,619 $ 720,355 Segment earnings: Aerospace $ 46,466 $ 92,911 Industrial 32,888 28,230 Nonsegment expenses (23,359 ) (51,071 ) Interest expense, net (8,411 ) (8,522 ) Consolidated earnings before income taxes $ 47,584 $ 61,548 Segment assets consist of accounts receivable; inventories; property, plant, and equipment, net; goodwill; and other intangibles, net. A summary of consolidated total assets by segment follows: December 31, 2020 September 30, 2020 Segment assets: Aerospace $ 1,717,820 $ 1,752,516 Industrial 1,560,889 1,529,411 Unallocated corporate property, plant and equipment, net 103,830 106,380 Other unallocated assets 576,966 515,029 Consolidated total assets $ 3,959,505 $ 3,903,336 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 24. Subsequent events On January 27, 2021, the Board approved a cash dividend of $0.1625 per share for the quarter, payable on March 8, 2021, for stockholders of record as of February 22, 2021. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenue Recognition Time | The amount of revenue recognized as point in time or over time follows: Three-Months Ended December 31, 2020 Three-Months Ended December 31, 2019 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Point in time $ 106,967 $ 154,195 $ 261,162 $ 187,515 $ 167,942 $ 355,457 Over time 214,700 61,757 276,457 286,410 78,488 364,898 Total net sales $ 321,667 $ 215,952 $ 537,619 $ 473,925 $ 246,430 $ 720,355 |
Schedule of Accounts Receivable | Accounts receivable consisted of the following: December 31, 2020 September 30, 2020 Billed receivables Trade accounts receivable $ 265,732 $ 307,914 Other (Chinese financial institutions) 46,896 56,640 Total billed receivables 312,628 364,554 Current unbilled receivables (contract assets) 204,592 181,792 Less: Allowance for uncollectible amounts (7,499 ) (8,359 ) Total accounts receivable, net $ 509,721 $ 537,987 |
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: Three-Months Ended December 31, 2020 Balance, beginning $ 8,359 Charged to costs and expenses 88 Deductions (1,171 ) Other additions 1 223 Balance, ending $ 7,499 |
Schedule of Contract Liability | Contract liabilities consisted of the following: December 31, 2020 September 30, 2020 Current Noncurrent Current Noncurrent Deferred revenue from material rights from GE joint venture formation $ 4,242 $ 232,882 $ 4,066 $ 234,240 Deferred revenue from advanced invoicing and/or prepayments from customers 4,182 1,338 3,239 85 Liability related to customer supplied inventory 16,885 — 14,955 — Deferred revenue from material rights related to engineering and development funding 4,076 136,804 2,360 132,317 Net contract liabilities $ 29,385 $ 371,024 $ 24,620 $ 366,642 |
Schedule of Disaggregation of Revenue | Revenue by primary market for the Aerospace reportable segment was as follows: Three-Months Ended December 31, 2020 2019 Commercial OEM $ 76,081 $ 158,666 Commercial aftermarket 65,515 125,928 Defense OEM 131,263 140,926 Defense aftermarket 48,808 48,405 Total Aerospace segment net sales $ 321,667 $ 473,925 Revenue by primary market for the Industrial reportable segment was as follows: Three-Months Ended December 31, 2020 2019 Reciprocating engines $ 164,922 $ 174,653 Industrial turbines 51,030 51,500 Renewables 1 — 20,277 Total Industrial segment net sales $ 215,952 $ 246,430 (1) Sales in the renewables market were discontinued as of May 1, 2020 following the closing of the divestiture of the renewable power systems business and other related businesses (as described more fully in Note 10, Sale of businesses , and defined therein as the “disposal group”) . The customers who account for approximately 10% or more of net sales of each of Woodward’s reportable segments for the three-months ended December 31, 2020 are as follows: Customer Aerospace The Boeing Company, General Electric Company, Raytheon Technologies Industrial Rolls-Royce PLC, Weichai Westport, General Electric Company Net sales by geographic area, as determined based on the location of the customer, were as follows: Three-Months Ended December 31, 2020 Three-Months Ended December 31, 2019 Aerospace Industrial Consolidated Aerospace Industrial Consolidated United States $ 257,546 $ 43,153 $ 300,699 $ 363,912 $ 51,092 $ 415,004 Germany 7,506 29,642 37,148 17,278 51,438 68,716 Europe, excluding Germany 20,940 43,068 64,008 38,987 50,501 89,488 China 8,964 65,983 74,947 10,212 53,876 64,088 Asia, excluding China 4,480 28,635 33,115 6,981 31,912 38,893 Other countries 22,231 5,471 27,702 36,555 7,611 44,166 Total net sales $ 321,667 $ 215,952 $ 537,619 $ 473,925 $ 246,430 $ 720,355 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
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: Three-Months Ended December 31, 2020 2019 Numerator: Net earnings $ 41,570 $ 53,373 Denominator: Basic shares outstanding 62,812 61,991 Dilutive effect of stock options and restricted stock 2,080 2,682 Diluted shares outstanding 64,892 64,673 Income per common share: Basic earnings per share $ 0.66 $ 0.86 Diluted earnings per share $ 0.64 $ 0.83 |
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. Three-Months Ended December 31, 2020 2019 Options 587 653 Weighted-average option price $ 104.99 $ 104.40 |
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: Three-Months Ended December 31, 2020 2019 Weighted-average treasury stock shares held for deferred compensation obligations 200 213 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease-Related Assets and Liabilities | Lease-related assets and liabilities follows: Classification on the Condensed Consolidated Balance Sheets December 31, 2020 September 30, 2020 Assets: Operating lease assets Other assets $ 20,061 $ 18,918 Finance lease assets Property, plant and equipment, net 1,094 1,201 Total lease assets 21,155 20,119 Current liabilities: Operating lease liabilities Accrued liabilities 4,950 4,925 Finance lease liabilities Current portion of long-term debt 1,623 1,634 Noncurrent liabilities: Operating lease liabilities Other liabilities 15,683 14,569 Finance lease liabilities Long-term debt, less current portion 802 1,173 Total lease liabilities $ 23,058 $ 22,301 |
Lease-Related Expenses | Lease-related expenses were as follows: Three-Months Ended Three-Months Ended December 31, 2020 December 31, 2019 Operating lease expense $ 1,553 $ 1,519 Amortization of finance lease assets 126 147 Interest on finance lease liabilities 18 20 Variable lease expense 322 307 Short-term lease expense 82 175 Sublease income 1 (168 ) (125 ) Total lease expense $ 1,933 $ 2,043 (1) Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois. |
Lease-Related Supplemental Cash Flow Information | Lease-related supplemental cash flow information was as follows: Three-Months Ended December 31, 2020 Three-Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1,151 $ 1,254 Operating cash flows for finance leases 18 20 Financing cash flows for finance leases 396 439 Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases 1,130 3,540 Finance leases 12 1,211 |
Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements | The carrying amount of property, plant and equipment December 31, 2020 September 30, 2020 Property, plant and equipment leased to others through embedded leasing arrangements $ 78,176 $ 76,655 Less accumulated depreciation (31,714 ) (29,819 ) Property, plant and equipment leased to others through embedded leasing arrangements, net $ 46,462 $ 46,836 |
Joint Venture (Tables)
Joint Venture (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
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: December 31, 2020 September 30, 2020 Accrued liabilities $ 4,242 $ 4,066 Other liabilities 232,882 234,240 |
Other Income Related JV | Other income related to Woodward’s equity interest in the earnings of the JV was as follows: Three-Months Ended December 31, 2020 2019 Other income $ 2,386 $ 3,212 |
Cash Distribution from JV | Cash distributions to Woodward from the JV, recognized in Net cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows, were as follows: Three-Months Ended December 31, 2020 2019 Cash distributions $ 3,500 $ 3,000 |
Net Sales to the JV | Net sales to the JV were as follows: Three-Months Ended December 31, 2020 2019 Net sales 1 $ 10,059 $ 14,878 |
Accounts Receivable, Accounts Payable, and Other Assets Related to JV | The Condensed 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: December 31, 2020 September 30, 2020 Accounts receivable $ 2,892 $ 3,062 Accounts payable 1,478 1,502 Other assets 8,009 9,123 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets that are Measured at Fair Value on a Recurring Basis | The table below presents information about Woodward’s financial assets 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 as defined by the U.S. GAAP fair value hierarchy. At December 31, 2020 At September 30, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Cash $ 188,104 $ — $ — $ 188,104 $ 112,817 $ — $ — $ 112,817 Investments in term deposits with foreign banks 13,777 — — 13,777 40,453 — — 40,453 Equity securities 28,526 — — 28,526 25,381 — — 25,381 Total financial assets $ 230,407 $ — $ — $ 230,407 $ 178,651 $ — $ — $ 178,651 Financial liabilities: Cross-currency interest rate swaps $ — $ 83,137 $ — $ 83,137 $ — $ 51,387 $ — $ 51,387 Total financial liabilities $ — $ 83,137 $ — $ 83,137 $ — $ 51,387 $ — $ 51,387 |
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 Condensed Consolidated Balance Sheets were as follows: At December 31, 2020 At September 30, 2020 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 $ 13,579 $ 10,941 $ 13,413 $ 11,846 Note receivable from sale of disposal group 2 6,341 6,111 6,341 6,061 Investments in short-term time deposits 2 16,537 16,521 13,678 13,671 Liabilities: Long-term debt 2 $ 853,830 $ 749,172 $ 935,610 $ 840,654 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedges [Abstract] | |
Impact of Derivative Instruments on Earnings | The following table discloses the impact of derivative instruments designated as qualifying hedging instruments on Woodward’s Condensed Consolidated Statements of Earnings: Three-Months Ended December 31, 2020 Derivatives in: Location Amount of (Income) Expense Recognized in Earnings on Derivative Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings Cross currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ 1,850 $ 1,663 $ 1,850 Cross currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses 19,110 28,995 19,110 $ 20,960 $ 30,658 $ 20,960 Three-Months Ended December 31, 2019 Derivatives in: Location Amount of (Income) Expense Recognized in Earnings on Derivative Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings Cross currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ 2,276 $ 3,598 $ 2,683 Cross currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses 8,991 7,696 8,991 Treasury lock agreement designated as cash flow hedge Interest expense (18 ) — (18 ) $ 11,249 $ 11,294 $ 11,656 |
Supplemental Statement of Cas_2
Supplemental Statement of Cash Flows Information (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Statement of Cash Flows Information | Three-Months Ended December 31, 2020 2019 Interest paid, net of amounts capitalized $ 12,280 $ 10,749 Income taxes paid 4,002 7,086 Income tax refunds received — 12 Non-cash activities: Purchases of property, plant and equipment on account 1,699 2,551 Impact of the adoption of ASC 842 — 255 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Inventory Net [Abstract] | |
Schedule of Inventories | December 31, September 30, 2020 2020 Raw materials $ 124,900 $ 123,626 Work in progress 93,652 92,934 Component parts (1) 266,018 255,980 Finished goods 66,712 66,889 Customer supplied inventory 16,885 14,955 On-hand inventory for which control has transferred to the customer (122,704 ) (116,441 ) $ 445,463 $ 437,943 (1) Component parts include items that can be sold separately as finished goods or included in the manufacture of other products. |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment Net [Abstract] | |
Schedule of Property Plant and Equipment, Net | December 31, September 30, 2020 2020 Land and land improvements $ 83,606 $ 83,095 Buildings and building improvements 553,274 551,540 Leasehold improvements 19,577 18,610 Machinery and production equipment 786,343 776,884 Computer equipment and software 124,290 123,903 Office furniture and equipment 41,825 41,177 Other 19,849 19,814 Construction in progress 36,034 36,367 1,664,798 1,651,390 Less accumulated depreciation (678,768 ) (653,975 ) Property, plant, and equipment, net $ 986,030 $ 997,415 |
Schedule of Depreciation Expense | For the three-months ended December 31, 2020 and 2019, Woodward had depreciation expense as follows: Three-Months Ended December 31, 2020 2019 Depreciation expense $ 22,608 $ 22,546 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | September 30, 2020 Effects of Foreign Currency Translation December 31, 2020 Aerospace $ 455,423 $ — $ 455,423 Industrial 352,829 13,357 366,186 Consolidated $ 808,252 $ 13,357 $ 821,609 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Schedule of Finite-lived and Indefinite-lived Intangible Assets by Major Class | December 31, 2020 September 30, 2020 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 $ (199,985 ) $ 81,698 $ 281,683 $ (196,520 ) $ 85,163 Industrial 447,664 (63,492 ) 384,172 429,249 (57,045 ) 372,204 Total $ 729,347 $ (263,477 ) $ 465,870 $ 710,932 $ (253,565 ) $ 457,367 Intellectual property: Aerospace $ — $ — $ — $ — $ — $ — Industrial 15,816 (15,724 ) 92 15,778 (15,640 ) 138 Total $ 15,816 $ (15,724 ) $ 92 $ 15,778 $ (15,640 ) $ 138 Process technology: Aerospace $ 76,370 $ (64,760 ) $ 11,610 $ 76,371 $ (63,956 ) $ 12,415 Industrial 94,506 (23,711 ) 70,795 90,945 (22,300 ) 68,645 Total $ 170,876 $ (88,471 ) $ 82,405 $ 167,316 $ (86,256 ) $ 81,060 Other intangibles: Aerospace $ — $ — $ — $ — $ — $ — Industrial 245 (212 ) 33 235 (183 ) 52 Total $ 245 $ (212 ) $ 33 $ 235 $ (183 ) $ 52 Intangible asset with indefinite life: Tradename: Aerospace $ — $ — $ — $ — $ — $ — Industrial 71,321 — 71,321 68,094 — 68,094 Total $ 71,321 $ — $ 71,321 $ 68,094 $ — $ 68,094 Total intangibles: Aerospace $ 358,053 $ (264,745 ) $ 93,308 $ 358,054 $ (260,476 ) $ 97,578 Industrial 629,552 (103,139 ) 526,413 647,738 (138,605 ) 509,133 Consolidated Total $ 987,605 $ (367,884 ) $ 619,721 $ 1,005,792 $ (399,081 ) $ 606,711 |
Schedule of Finite-Lived Intangible Assets Amortization Expense | For the three-months ended December 31, 2020 and 2019, Woodward recorded amortization expense associated with intangibles of the following: Three-Months Ended December 31, 2020 2019 Amortization expense $ 10,469 $ 9,905 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization expense associated with intangibles is expected to be: Year Ending September 30: 2021 (remaining) $ 31,888 2022 39,683 2023 38,632 2024 34,880 2025 29,665 Thereafter 373,652 $ 548,400 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities [Line Items] | |
Accrued Liabilities | December 31, September 30, 2020 2020 Salaries and other member benefits $ 40,392 $ 50,850 Warranties 21,079 18,972 Interest payable 5,501 15,281 Accrued retirement benefits 3,063 3,051 Restructuring charges 1,596 3,395 Taxes, other than income 26,432 13,925 Net current contract liabilities (Note 3) 29,385 24,620 Other 28,484 21,700 $ 155,932 $ 151,794 |
Changes in Accrued Product Warranties | Changes in accrued product warranties were as follows: Three-Months Ended December 31, 2020 2019 Warranties, beginning of period $ 18,972 $ 27,309 Expense, net of recoveries 1,389 (4,333 ) Reductions for settlement of previous warranty liabilities 392 (4,277 ) Foreign currency exchange rate changes 326 228 Warranties, end of period $ 21,079 $ 18,927 |
Employee Severance [Member] | |
Accrued Liabilities [Line Items] | |
Loss Reserve & Restructuring Reserve Activity | The summary of activity in accrued restructuring charges during the three-months ended December 31, 2020 and December 31, 2019 are as follows: Period Activity Balances as of September 30, 2020 Charges (reductions) Cash receipts (payments) Foreign currency exchange rate changes Non-cash activity Balances as of December 31, 2020 Workforce management costs associated with: COVID-19 pandemic $ 3,395 $ — $ (1,742 ) $ 45 $ (102 ) $ 1,596 Total $ 3,395 $ — $ (1,742 ) $ 45 $ (102 ) $ 1,596 Period Activity Balances as of September 30, 2019 Charges (reductions) Cash receipts (payments) Foreign currency exchange rate changes Non-cash activity Balances as of December 31, 2019 Workforce management costs associated with: Duarte plant relocation $ 440 $ — $ (228 ) $ — $ — $ 212 Industrial turbomachinery business realignment 67 — — — (24 ) 43 Total $ 507 $ — $ (228 ) $ — $ (24 ) $ 255 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Noncurrent [Abstract] | |
Schedule of Other Liabilities | December 31, September 30, 2020 2020 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 120,313 $ 114,013 Total unrecognized tax benefits 10,602 10,230 Noncurrent income taxes payable 18,322 18,322 Deferred economic incentives (1) 8,852 9,105 Cross-currency swap derivative liability 83,137 51,387 Noncurrent operating lease liabilities 15,683 14,569 Net noncurrent contract liabilities 371,024 366,642 Other 26,355 33,637 $ 654,288 $ 617,905 (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. |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Nonoperating Income Expense [Abstract] | |
Schedule of Other (Income) Expense, Net | Three-Months Ended December 31, 2020 2019 Equity interest in the earnings of the JV (Note 6) $ (2,386 ) $ (3,212 ) Net gain on sales of assets and businesses (1) (588 ) (13,547 ) Rent income (350 ) (251 ) Net gain on investments in deferred compensation program (983 ) (1,244 ) Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense (3,650 ) (3,047 ) Other (166 ) (124 ) $ (8,123 ) $ (21,425 ) (1) Included in net gain on sale and businesses for the three-months ended December 31, 2019 was the pre-tax gain on sale of Duarte real property in the amount of $13,522. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Tax Expense and Effective Tax Rate | The following table sets forth the tax expense and the effective tax rate for Woodward’s earnings before income taxes: Three-Months Ended December 31, 2020 2019 Earnings before income taxes $ 47,584 $ 61,548 Income tax expense 6,014 8,175 Effective tax rate 12.6 % 13.3 % |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
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: Three-Months Ended December 31, 2020 2019 Company costs $ 8,036 $ 8,704 |
Schedule of Estimated Remaining Cash Contributions | Woodward estimates its remaining cash contributions in fiscal year 2021 will be as follows: Retirement pension benefits: United States $ — United Kingdom 512 Japan — Germany 868 Other postretirement benefits 3,075 |
Schedule of Amounts of Contributions Associated with Multiemployer Defined Benefit Plans | The amounts of contributions associated with the multiemployer defined benefit plans were as follows: Three-Months Ended December 31, 2020 2019 Company contributions $ 68 $ 70 |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Periodic Benefit Costs | The components of the net periodic retirement pension costs recognized are as follows: Three-Months Ended December 31, United States Other Countries Total 2020 2019 2020 2019 2020 2019 Service cost $ 432 $ 415 $ 729 $ 710 $ 1,161 $ 1,125 Interest cost 1,239 1,398 333 321 1,572 1,719 Expected return on plan assets (3,536 ) (3,087 ) (602 ) (832 ) (4,138 ) (3,919 ) Amortization of: Net actuarial loss 135 358 228 261 363 619 Prior service cost 242 234 6 6 248 240 Net periodic retirement pension (benefit) cost $ (1,488 ) $ (682 ) $ 694 $ 466 $ (794 ) $ (216 ) Contributions paid $ — $ — $ 543 $ 1,131 $ 543 $ 1,131 |
Other Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Periodic Benefit Costs | The components of the net periodic other postretirement benefit costs recognized are as follows: Three-Months Ended December 31, 2020 2019 Service cost $ — $ 1 Interest cost 150 195 Amortization of: Net actuarial loss 7 12 Prior service cost (benefit) — 1 Net periodic other postretirement cost $ 157 $ 209 Contributions paid $ 38 $ 345 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) - Stock Options [Member] | 3 Months Ended |
Dec. 31, 2020 | |
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. Three-Months Ended December 31, 2020 2019 Weighted-average exercise price per share $ 81.06 $ 104.82 Weighted-average grant date market value of Woodward stock $ 81.06 $ 104.82 Expected term (years) 6.5 - 8.7 6.4 - 8.7 Estimated volatility 33.3% - 36.1% 25.7% - 30.1% Estimated dividend yield 0.3% - 0.4% 0.6% Risk-free interest rate 0.4% - 0.6% 1.6% - 1.7% |
Summary of Activity for Stock Option Awards | The following is a summary of the activity for stock option awards during the three-months ended December 31, 2020: Three-Months Ended December 31, 2020 Number of options Weighted-Average Exercise Price per Share Options, beginning balance 5,443 $ 62.00 Options granted 747 81.06 Options exercised (286 ) 39.82 Options forfeited (3 ) 87.38 Options, ending balance 5,901 65.47 |
Changes in Non-vested Stock Options | Changes in non-vested stock options during the three-months ended December 31, 2020 were as follows: Three-Months Ended December 31, 2020 Number of options Weighted-Average Grant Date Fair Value per Share Non-vested options outstanding, beginning balance 2,078 $ 24.69 Options granted 747 27.73 Options vested (652 ) 25.81 Options forfeited (3 ) 25.18 Non-vested options outstanding, ending balance 2,170 25.40 |
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 December 31, 2020 was as follows: Number Weighted-Average Exercise Price Weighted-Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 5,901 $ 65.47 6.4 $ 330,818 Options vested and exercisable 3,731 55.73 5.0 245,492 Options vested and expected to vest 5,797 65.20 6.3 326,577 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Consolidated Net Sales and Earnings by Segment | A summary of consolidated net sales and earnings by segment follows: Three-Months Ended December 31, 2020 2019 Segment external net sales: Aerospace $ 321,667 $ 473,925 Industrial 215,952 246,430 Total consolidated net sales $ 537,619 $ 720,355 Segment earnings: Aerospace $ 46,466 $ 92,911 Industrial 32,888 28,230 Nonsegment expenses (23,359 ) (51,071 ) Interest expense, net (8,411 ) (8,522 ) Consolidated earnings before income taxes $ 47,584 $ 61,548 |
Summary of Consolidated Total Assets 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 by segment follows: December 31, 2020 September 30, 2020 Segment assets: Aerospace $ 1,717,820 $ 1,752,516 Industrial 1,560,889 1,529,411 Unallocated corporate property, plant and equipment, net 103,830 106,380 Other unallocated assets 576,966 515,029 Consolidated total assets $ 3,959,505 $ 3,903,336 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Noncurrent unbilled receivables | $ 12,053 | $ 16,751 | |
Revenue from contract liabilities | $ 6,528 | $ 3,970 | |
Net Sales [Member] | Manufactured Products [Member] | |||
Percentage of attributable to revenue | 87.00% | 87.00% | |
Net Sales [Member] | MRO Products [Member] | |||
Percentage of attributable to revenue | 12.00% | 12.00% | |
Net Sales [Member] | Service [Member] | |||
Percentage of attributable to revenue | 1.00% | 1.00% |
Revenue (Schedule of Revenue Re
Revenue (Schedule of Revenue Recognition Time) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 537,619 | $ 720,355 |
Aerospace [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 321,667 | 473,925 |
Industrial [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 215,952 | 246,430 |
Point In Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 261,162 | 355,457 |
Point In Time [Member] | Aerospace [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 106,967 | 187,515 |
Point In Time [Member] | Industrial [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 154,195 | 167,942 |
Over Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 276,457 | 364,898 |
Over Time [Member] | Aerospace [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 214,700 | 286,410 |
Over Time [Member] | Industrial [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 61,757 | $ 78,488 |
Revenue (Schedule of Accounts R
Revenue (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Contract With Customer Asset [Line Items] | ||
Total billed receivables | $ 312,628 | $ 364,554 |
Current unbilled receivables (contract assets) | 204,592 | 181,792 |
Less: Allowance for uncollectible amounts | (7,499) | (8,359) |
Total accounts receivable, net | 509,721 | 537,987 |
Trade Accounts Receivable [Member] | ||
Contract With Customer Asset [Line Items] | ||
Billed receivables | 265,732 | 307,914 |
Other (Chinese Financial Institutions) [Member] | ||
Contract With Customer Asset [Line Items] | ||
Billed receivables | $ 46,896 | $ 56,640 |
Revenue (Schedule of Uncollecti
Revenue (Schedule of Uncollectible Amounts And Change in Expected Allowance for Credit Losses for Trade Accounts Receivable and Unbilled Receivables) (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020USD ($) | ||
Revenue From Contract With Customer [Abstract] | ||
Balance, beginning | $ 8,359 | |
Charged to costs and expenses | 88 | |
Deductions | (1,171) | |
Other additions | 223 | [1] |
Balance, ending | $ 7,499 | |
[1] | Includes effects of foreign exchange rate changes during the period. |
Revenue (Schedule of Contract L
Revenue (Schedule of Contract Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | $ 29,385 | $ 24,620 |
Noncurrent contract liabilities | 371,024 | 366,642 |
Deferred Revenue From Material Rights From GE Joint Venture Formation [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 4,242 | 4,066 |
Noncurrent contract liabilities | 232,882 | 234,240 |
Deferred Revenue From Advance Invoicing And/Or Prepayments From Customers [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 4,182 | 3,239 |
Noncurrent contract liabilities | 1,338 | 85 |
Liability Related To Customer Supplied Inventory [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 16,885 | 14,955 |
Deferred Revenue From Material Rights Related To Engineering And Development Funding [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 4,076 | 2,360 |
Noncurrent contract liabilities | $ 136,804 | $ 132,317 |
Revenue (Narrative - Performanc
Revenue (Narrative - Performance Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Remaining performance obligation amount | $ 1,274,218 | $ 1,454,406 |
Material Rights [Member] | ||
Remaining performance obligation amount | $ 464,296 | $ 465,668 |
Revenue (Narrative - Performa_2
Revenue (Narrative - Performance Obligations) (Details1) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Remaining performance obligation amount | $ 1,274,218 | $ 1,454,406 |
Material Rights [Member] | ||
Remaining performance obligation amount | $ 464,296 | $ 465,668 |
Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 9 months | |
Remaining performance obligation amount | $ 8,952 | |
Remaining performance obligation, expected timing of satisfaction, year | 2021 | |
Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 1 year 9 months | |
Remaining performance obligation amount | $ 10,625 | |
Remaining performance obligation, expected timing of satisfaction, year | 2022 | |
Aerospace [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 2 years | |
Maximum [Member] | Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 40 years |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | $ 537,619 | $ 720,355 | |
United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 300,699 | 415,004 | |
Germany [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 37,148 | 68,716 | |
Europe, excluding Germany [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 64,008 | 89,488 | |
China | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 74,947 | 64,088 | |
Asia, excluding China [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 33,115 | 38,893 | |
Other Countries [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 27,702 | 44,166 | |
Aerospace [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 321,667 | 473,925 | |
Aerospace [Member] | United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 257,546 | 363,912 | |
Aerospace [Member] | Germany [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 7,506 | 17,278 | |
Aerospace [Member] | Europe, excluding Germany [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 20,940 | 38,987 | |
Aerospace [Member] | China | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 8,964 | 10,212 | |
Aerospace [Member] | Asia, excluding China [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 4,480 | 6,981 | |
Aerospace [Member] | Other Countries [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 22,231 | 36,555 | |
Aerospace [Member] | Commercial OEM [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 76,081 | 158,666 | |
Aerospace [Member] | Commercial Aftermarket [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 65,515 | 125,928 | |
Aerospace [Member] | Defense OEM [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 131,263 | 140,926 | |
Aerospace [Member] | Defense Aftermarket [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 48,808 | 48,405 | |
Industrial [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 215,952 | 246,430 | |
Industrial [Member] | United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 43,153 | 51,092 | |
Industrial [Member] | Germany [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 29,642 | 51,438 | |
Industrial [Member] | Europe, excluding Germany [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 43,068 | 50,501 | |
Industrial [Member] | China | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 65,983 | 53,876 | |
Industrial [Member] | Asia, excluding China [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 28,635 | 31,912 | |
Industrial [Member] | Other Countries [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 5,471 | 7,611 | |
Industrial [Member] | Reciprocating Engines [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | 164,922 | 174,653 | |
Industrial [Member] | Industrial Turbines [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | $ 51,030 | 51,500 | |
Industrial [Member] | Renewables [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total net sales | [1] | $ 20,277 | |
[1] | (1) Sales in the renewables market were discontinued as of May 1, 2020 following the closing of the divestiture of the renewable power systems business and other related businesses (as described more fully in Note 10, Sale of businesses , and defined therein as the “disposal group”) . |
Earnings Per Share (Reconciliat
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 | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||
Net earnings | $ 41,570 | $ 53,373 |
Denominator: | ||
Basic shares outstanding | 62,812 | 61,991 |
Dilutive effect of stock options and restricted stock | 2,080 | 2,682 |
Diluted shares outstanding | 64,892 | 64,673 |
Income per common share: | ||
Basic earnings per share | $ 0.66 | $ 0.86 |
Diluted earnings per share | $ 0.64 | $ 0.83 |
Earnings Per Share (Anti-diluti
Earnings Per Share (Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share) (Details) - Stock Options [Member] - $ / shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Options | 587 | 653 |
Weighted-average option price | $ 104.99 | $ 104.40 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding) (Details) - shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Weighted-average treasury stock shares held for deferred compensation obligations | 200 | 213 |
Leases (Lease-Related Assets an
Leases (Lease-Related Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Assets: | ||
Operating lease assets | $ 20,061 | $ 18,918 |
Finance lease assets | 1,094 | 1,201 |
Total lease assets | 21,155 | 20,119 |
Current liabilities: | ||
Operating lease liabilities | 4,950 | 4,925 |
Finance lease liabilities | 1,623 | 1,634 |
Noncurrent liabilities: | ||
Operating lease liabilities | 15,683 | 14,569 |
Finance lease liabilities | 802 | 1,173 |
Total lease liabilities | $ 23,058 | $ 22,301 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee Lease Description [Line Items] | ||
Revenue included embedded operating leases | $ 1,798 | $ 1,564 |
Disposal Groups [Member] | ||
Lessee Lease Description [Line Items] | ||
Non-cash impairment charge | $ 639 |
Leases (Lease-Related Expenses)
Leases (Lease-Related Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | |||
Operating lease expense | $ 1,553 | $ 1,519 | |
Amortization of finance lease assets | 126 | 147 | |
Interest on finance lease liabilities | 18 | 20 | |
Variable lease expense | 322 | 307 | |
Short-term lease expense | 82 | 175 | |
Sublease income | [1] | (168) | (125) |
Total lease expense | $ 1,933 | $ 2,043 | |
[1] | Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois. |
Leases (Lease-Related Supplemen
Leases (Lease-Related Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases | $ 1,151 | $ 1,254 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases | 18 | 20 |
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases | 396 | 439 |
Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases | 1,130 | 3,540 |
Right-of-use assets obtained in exchange for recorded lease obligations: Finance leases | $ 12 | $ 1,211 |
Leases (Property, Plant and Equ
Leases (Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Leases [Abstract] | ||
Property, plant and equipment leased to others through embedded leasing arrangements | $ 78,176 | $ 76,655 |
Less accumulated depreciation | (31,714) | (29,819) |
Property, plant and equipment leased to others through embedded leasing arrangements, net | $ 46,462 | $ 46,836 |
Joint Venture (Narrative) (Deta
Joint Venture (Narrative) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Schedule Of Equity Method Investments [Line Items] | |||
Agreement to Form Joint Venture, Execution Date | Jan. 4, 2016 | ||
Other Liabilities [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Contract liabilities | $ 70,697 | $ 70,618 | |
Other Assets [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Costs to fulfill a contract | 70,697 | $ 70,618 | |
Sales [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Amortization of deferred income recognized as an increase to sales | 1,182 | $ 1,708 | |
Reduction to sales related to royalties owed to joint venture | $ 4,420 | $ 7,234 |
Joint Venture (Unamortized Defe
Joint Venture (Unamortized Deferred Revenue from JV) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Schedule Of Equity Method Investments [Line Items] | ||
Accrued liabilities | $ 4,242 | $ 4,066 |
Other liabilities | $ 232,882 | $ 234,240 |
Joint Venture (Other Income Rel
Joint Venture (Other Income Related JV) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | ||
Other income | $ 2,386 | $ 3,212 |
Woodward and General Electric Joint Venture [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Other income | $ 2,386 | $ 3,212 |
Joint Venture (Cash Distributio
Joint Venture (Cash Distribution from JV) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Woodward and General Electric Joint Venture [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Cash distributions | $ 3,500 | $ 3,000 |
Joint Venture (Net Sales to the
Joint Venture (Net Sales to the JV) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Woodward and General Electric Joint Venture [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Net sales | [1] | $ 10,059 | $ 14,878 |
[1] | Net sales included a reduction of $4,420 for the three-months ended December 31, 2020 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $7,234 for the three-months ended December 31, 2019. |
Joint Venture (Accounts Receiva
Joint Venture (Accounts Receivable, Accounts Payable, and Other Assets Related to JV) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Schedule Of Equity Method Investments [Line Items] | ||
Accounts receivable | $ 2,892 | $ 3,062 |
Accounts payable | 1,478 | 1,502 |
Other assets | $ 8,009 | $ 9,123 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Financial Assets that are Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Financial assets: | ||
Total financial assets | $ 230,407 | $ 178,651 |
Financial liabilities: | ||
Total financial liabilities | 83,137 | 51,387 |
Cross Currency Interest Rate Swaps [Member] | ||
Financial liabilities: | ||
Cross-currency interest rate swaps | 83,137 | 51,387 |
Level 1 [Member] | ||
Financial assets: | ||
Total financial assets | 230,407 | 178,651 |
Level 2 [Member] | ||
Financial liabilities: | ||
Total financial liabilities | 83,137 | 51,387 |
Level 2 [Member] | Cross Currency Interest Rate Swaps [Member] | ||
Financial liabilities: | ||
Cross-currency interest rate swaps | 83,137 | 51,387 |
Cash [Member] | ||
Financial assets: | ||
Cash | 188,104 | 112,817 |
Cash [Member] | Level 1 [Member] | ||
Financial assets: | ||
Cash | 188,104 | 112,817 |
Investments in Term Deposits with Foreign Banks [Member] | ||
Financial assets: | ||
Investments | 13,777 | 40,453 |
Investments in Term Deposits with Foreign Banks [Member] | Level 1 [Member] | ||
Financial assets: | ||
Investments | 13,777 | 40,453 |
Equity Securities [Member] | ||
Financial assets: | ||
Equity securities | 28,526 | 25,381 |
Equity Securities [Member] | Level 1 [Member] | ||
Financial assets: | ||
Equity securities | $ 28,526 | $ 25,381 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - Level 2 [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
ASSETS | ||
Investments in short-term time deposits, Estimated Fair Value | $ 16,537 | $ 13,678 |
Liabilities: | ||
Long-term debt, Estimated Fair Value | 853,830 | 935,610 |
Investments in short-term time deposits, Carrying Cost | 16,521 | 13,671 |
Long-term debt, Carrying Cost | 749,172 | 840,654 |
Long Term Notes Receivable from Municipalities [Member] | ||
ASSETS | ||
Notes receivable, Estimated Fair Value | 13,579 | 13,413 |
Liabilities: | ||
Notes receivable, Carrying Cost | 10,941 | 11,846 |
Long Term Notes Receivable from Sale of Disposal Groups [Member] | ||
ASSETS | ||
Notes receivable, Estimated Fair Value | 6,341 | 6,341 |
Liabilities: | ||
Notes receivable, Carrying Cost | $ 6,111 | $ 6,061 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Narrative) (Details) - Measurement Input, Discount Rate [Member] | Dec. 31, 2020 | Sep. 30, 2020 |
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 | 1.3 | 1.5 |
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 | 1 | 1.2 |
Interest rate used to measure promissory notes | 2.3 | |
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 | 3.9 | 4.4 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Thousands | 3 Months Ended | ||||
Dec. 31, 2020USD ($)Swaploan | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | May 31, 2018USD ($)loan | Sep. 23, 2016EUR (€) | |
Derivative Instruments Gain Loss [Line Items] | |||||
Derivative, notional amount | $ 37,500 | ||||
Remaining unrecognzied gains (losses) associated with derivative instruments included in AOCI | $ (30,830) | $ (21,132) | |||
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 | $ (2,227) | $ (1,045) | |||
Floating-Rate Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Derivative, notional amount | $ 167,420 | ||||
2020 Fixed-Rate Cross-Currency Swaps [Member] | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Derivative, notional amount | $ 400,000 | ||||
2020 Fixed-Rate Cross-Currency Swaps [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Derivative, notional amount | 400,000 | ||||
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] | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Derivative, notional amount | $ 400,000 | ||||
Derivative, number of instruments | loan | 5 | 5 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Impact of Derivative Instruments on Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (Income) Expense Recognized in Earnings on Derivative | $ 20,960 | $ 11,249 |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | 30,658 | 11,294 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | 20,960 | 11,656 |
Floating-Rate Cross Currency Interest Rate Contract [Member] | Derivatives in Fair Value Hedging Relationships [Member] | Selling, General and Administrative Expenses [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (Income) Expense Recognized in Earnings on Derivative | 1,850 | 2,276 |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | 1,663 | 3,598 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | 1,850 | 2,683 |
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Cash Flow Hedging | Selling, General and Administrative Expenses [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (Income) Expense Recognized in Earnings on Derivative | 19,110 | 8,991 |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | 28,995 | 7,696 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ 19,110 | 8,991 |
Treasury Lock | Cash Flow Hedging | Interest Expense | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (Income) Expense Recognized in Earnings on Derivative | (18) | |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ (18) |
Supplemental Statement of Cas_3
Supplemental Statement of Cash Flows Information (Schedule of Supplemental Statement of Cash Flows Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid, net of amounts capitalized | $ 12,280 | $ 10,749 |
Income taxes paid | 4,002 | 7,086 |
Income tax refunds received | 12 | |
Non-cash activities: | ||
Purchases of property, plant and equipment on account | $ 1,699 | 2,551 |
Impact of the adoption of ASC 842 | $ 255 |
Sale of businesses (Narrative)
Sale of businesses (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Impairment of assets sold | $ 37,902 | ||
Disposal Groups [Member] | |||
Non-cash impairment charge | $ 22,900 | ||
Impairment of assets sold | $ 37,902 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | |
Inventory Net [Abstract] | |||
Raw materials | $ 124,900 | $ 123,626 | |
Work in progress | 93,652 | 92,934 | |
Component parts | [1] | 266,018 | 255,980 |
Finished goods | 66,712 | 66,889 | |
Customer supplied inventory | 16,885 | 14,955 | |
On-hand inventory for which control has transferred to the customer | 122,704 | 116,441 | |
Inventory, net | $ 445,463 | $ 437,943 | |
[1] | Component parts include items that can be sold separately as finished goods or included in the manufacture of other products. |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Schedule of Property Plant and Equipment, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 1,664,798 | $ 1,651,390 |
Less accumulated depreciation | (678,768) | (653,975) |
Property, plant, and equipment, net | 986,030 | 997,415 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 83,606 | 83,095 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 553,274 | 551,540 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 19,577 | 18,610 |
Machinery and Production Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 786,343 | 776,884 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 124,290 | 123,903 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 41,825 | 41,177 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 19,849 | 19,814 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 36,034 | $ 36,367 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Property, Plant and Equipment [Line Items] | |||
Net (gain) loss on sales of assets | [1] | $ 588 | $ 13,547 |
Impairment of assets held for sale | 37,902 | ||
Duarte Facility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Net (gain) loss on sales of assets | $ (13,522) | ||
Disposal Groups [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of assets held for sale | 37,902 | ||
Disposal Groups [Member] | Plant, Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of assets held for sale | $ 13,421 | ||
[1] | Included in net gain on sale and businesses for the three-months ended December 31, 2019 was the pre-tax gain on sale of Duarte real property in the amount of $13,522. |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment (Schedule of Depreciation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment Net [Abstract] | ||
Depreciation expense | $ 22,608 | $ 22,546 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 808,252 |
Effects of Foreign Currency Translation | 13,357 |
Goodwill, Ending Balance | 821,609 |
Aerospace [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 455,423 |
Goodwill, Ending Balance | 455,423 |
Industrial [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 352,829 |
Effects of Foreign Currency Translation | 13,357 |
Goodwill, Ending Balance | $ 366,186 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Disposal Groups [Member] | |
Goodwill [Line Items] | |
Impairment charge | $ 8,640 |
Intangible Assets, Net (Schedul
Intangible Assets, Net (Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization of Finite-Lived Intangible | $ (367,884) | $ (399,081) |
Net Carrying Amount - Finite-Lived Intangible | 548,400 | |
Intangible Assets, Gross, Total | 987,605 | 1,005,792 |
Intangible Assets, Net, Total | 619,721 | 606,711 |
Customer Relationships And Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 729,347 | 710,932 |
Accumulated Amortization of Finite-Lived Intangible | (263,477) | (253,565) |
Net Carrying Amount - Finite-Lived Intangible | 465,870 | 457,367 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 15,816 | 15,778 |
Accumulated Amortization of Finite-Lived Intangible | (15,724) | (15,640) |
Net Carrying Amount - Finite-Lived Intangible | 92 | 138 |
Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 170,876 | 167,316 |
Accumulated Amortization of Finite-Lived Intangible | (88,471) | (86,256) |
Net Carrying Amount - Finite-Lived Intangible | 82,405 | 81,060 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 245 | 235 |
Accumulated Amortization of Finite-Lived Intangible | (212) | (183) |
Net Carrying Amount - Finite-Lived Intangible | 33 | 52 |
Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 71,321 | 68,094 |
Aerospace [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization of Finite-Lived Intangible | (264,745) | (260,476) |
Intangible Assets, Gross, Total | 358,053 | 358,054 |
Intangible Assets, Net, Total | 93,308 | 97,578 |
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 | (199,985) | (196,520) |
Net Carrying Amount - Finite-Lived Intangible | 81,698 | 85,163 |
Aerospace [Member] | Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 76,370 | 76,371 |
Accumulated Amortization of Finite-Lived Intangible | (64,760) | (63,956) |
Net Carrying Amount - Finite-Lived Intangible | 11,610 | 12,415 |
Industrial [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization of Finite-Lived Intangible | (103,139) | (138,605) |
Intangible Assets, Gross, Total | 629,552 | 647,738 |
Intangible Assets, Net, Total | 526,413 | 509,133 |
Industrial [Member] | Customer Relationships And Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 447,664 | 429,249 |
Accumulated Amortization of Finite-Lived Intangible | (63,492) | (57,045) |
Net Carrying Amount - Finite-Lived Intangible | 384,172 | 372,204 |
Industrial [Member] | Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 15,816 | 15,778 |
Accumulated Amortization of Finite-Lived Intangible | (15,724) | (15,640) |
Net Carrying Amount - Finite-Lived Intangible | 92 | 138 |
Industrial [Member] | Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 94,506 | 90,945 |
Accumulated Amortization of Finite-Lived Intangible | (23,711) | (22,300) |
Net Carrying Amount - Finite-Lived Intangible | 70,795 | 68,645 |
Industrial [Member] | Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 245 | 235 |
Accumulated Amortization of Finite-Lived Intangible | (212) | (183) |
Net Carrying Amount - Finite-Lived Intangible | 33 | 52 |
Industrial [Member] | Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | $ 71,321 | $ 68,094 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Disposal Groups [Member] | |
Intangible Assets, Net [Line Items] | |
Impairment of intangible assets, Indefinite-lived | $ 200 |
Intangible Assets, Net (Sched_2
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Amortization expense | $ 10,469 | $ 9,905 |
Intangible Assets, Net (Sched_3
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Intangible Assets Net Excluding Goodwill [Abstract] | |
2021 (remaining) | $ 31,888 |
2022 | 39,683 |
2023 | 38,632 |
2024 | 34,880 |
2025 | 29,665 |
Thereafter | 373,652 |
Net Carrying Amount - Finite-Lived Intangible | $ 548,400 |
Credit Facilities, Short-term_2
Credit Facilities, Short-term Borrowings and Long-term Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Nov. 25, 2020 | Sep. 30, 2020 | |
Notes Payable to Banks [Member] | Series J Notes [Member] | |||
Debt Instrument [Line Items] | |||
Borrowings principal payment | $ 100,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,000,000 | ||
Line of credit facility, maximum borrowing capacity extension | 1,500,000 | ||
Outstanding borrowings | 0 | $ 0 | |
Foreign Lines of Credit And Overdraft Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Short-term borrowings | $ 0 | $ 0 | |
Minimum [Member] | LIBOR [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.875% | ||
Maximum [Member] | LIBOR [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Accrued Liabilities Current [Abstract] | |||||
Salaries and other member benefits | $ 40,392 | $ 50,850 | |||
Warranties | 21,079 | 18,972 | $ 18,972 | $ 18,927 | $ 27,309 |
Interest payable | 5,501 | 15,281 | |||
Accrued retirement benefits | 3,063 | 3,051 | |||
Restructuring charges | 1,596 | 3,395 | |||
Taxes, other than income | 26,432 | 13,925 | |||
Net current contract liabilities (Note 3) | 29,385 | 24,620 | |||
Other | 28,484 | 21,700 | |||
Accrued liabilities | $ 155,932 | $ 151,794 |
Accrued Liabilities (Changes in
Accrued Liabilities (Changes in Accrued Product Warranties) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accrued Liabilities Current [Abstract] | ||
Warranties, beginning of period | $ 18,972 | |
Expense, net of recoveries | 1,389 | $ (4,333) |
Reductions for settlement of previous warranty liabilities | 392 | (4,277) |
Foreign currency exchange rate changes | 326 | 228 |
Warranties, end of period | $ 21,079 | $ 18,927 |
Accrued Liabilities (Narrative)
Accrued Liabilities (Narrative) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Termination Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related charges | $ 23,673 |
Accrued Liabilities (Changes _2
Accrued Liabilities (Changes in Restructuring Reserve Activity) (Details) - Employee Severance [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges, beginning of period | $ 3,395 | $ 507 |
Cash receipts (payments) | 1,742 | 228 |
Foreign currency exchange rate changes | 45 | |
Non-cash activity | (102) | (24) |
Restructuring charges, end of period | 1,596 | 255 |
Duarte Relocation Restructuring Charge Reserve | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges, beginning of period | 440 | |
Cash receipts (payments) | 228 | |
Restructuring charges, end of period | 212 | |
Industrial Turbomachinery Business Realignment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges, beginning of period | 67 | |
Non-cash activity | (24) | |
Restructuring charges, end of period | $ 43 | |
Covid-19 Pandemic [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges, beginning of period | 3,395 | |
Cash receipts (payments) | 1,742 | |
Foreign currency exchange rate changes | 45 | |
Non-cash activity | (102) | |
Restructuring charges, end of period | $ 1,596 |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | |
Other Liabilities Noncurrent [Abstract] | |||
Net accrued retirement benefits, less amounts recognized within accrued liabilities | $ 120,313 | $ 114,013 | |
Total unrecognized tax benefits | 10,602 | 10,230 | |
Noncurrent income taxes payable | 18,322 | 18,322 | |
Deferred economic incentives | [1] | 8,852 | 9,105 |
Cross-currency swap derivative liability | 83,137 | 51,387 | |
Operating lease liabilities | 15,683 | 14,569 | |
Net noncurrent contract liabilities | 371,024 | 366,642 | |
Other | 26,355 | 33,637 | |
Other liabilities | $ 654,288 | $ 617,905 | |
[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. |
Other (Income) Expense, Net (Sc
Other (Income) Expense, Net (Schedule of Other (Income) Expense, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Nonoperating Income Expense [Abstract] | |||
Equity interest in the earnings of the JV (Note 6) | $ (2,386) | $ (3,212) | |
Net gain on sales of assets and businesses | [1] | (588) | (13,547) |
Rent income | (350) | (251) | |
Net gain on investments in deferred compensation program | (983) | (1,244) | |
Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense | (3,650) | (3,047) | |
Other | (166) | (124) | |
Other (income) expense, net | $ (8,123) | $ (21,425) | |
[1] | Included in net gain on sale and businesses for the three-months ended December 31, 2019 was the pre-tax gain on sale of Duarte real property in the amount of $13,522. |
Other (Income) Expense, Net (_2
Other (Income) Expense, Net (Schedule of Other (Income) Expense, Net) (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Net (gain) loss on sales of assets | [1] | $ 588 | $ 13,547 |
Duarte Facility [Member] | |||
Net (gain) loss on sales of assets | $ (13,522) | ||
[1] | Included in net gain on sale and businesses for the three-months ended December 31, 2019 was the pre-tax gain on sale of Duarte real property in the amount of $13,522. |
Income Taxes (Tax Expense and E
Income Taxes (Tax Expense and Effective Tax Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Earnings before income taxes | $ 47,584 | $ 61,548 |
Income tax expense | $ 6,014 | $ 8,175 |
Effective tax rate | 12.60% | 13.30% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Income Taxes [Line Items] | ||
Gross unrecognized tax benefits | $ 10,194 | $ 9,851 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 4,948 | |
Possible decrease in unrecognized tax benefits liability | $ 1,884 | |
Domestic Tax Authority [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 | 2016 | |
Foreign Jurisdiction [Member] | ||
Income Taxes [Line Items] | ||
Year remaining open to tax examination | 2016 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Amount of Expense Associated with Defined Contribution Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||
Company costs | $ 8,036 | $ 8,704 |
Retirement Benefits (Schedule_2
Retirement Benefits (Schedule of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,161 | $ 1,125 |
Interest cost | 1,572 | 1,719 |
Expected return on plan assets | (4,138) | (3,919) |
Amortization of: Net actuarial loss | 363 | 619 |
Amortization of: Prior service cost (benefit) | 248 | 240 |
Net periodic retirement pension (benefit) cost | (794) | (216) |
Contributions paid | 543 | 1,131 |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | |
Interest cost | 150 | 195 |
Amortization of: Net actuarial loss | 7 | 12 |
Amortization of: Prior service cost (benefit) | 1 | |
Net periodic retirement pension (benefit) cost | 157 | 209 |
Contributions paid - other postretirement plans | 38 | 345 |
United States [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 432 | 415 |
Interest cost | 1,239 | 1,398 |
Expected return on plan assets | (3,536) | (3,087) |
Amortization of: Net actuarial loss | 135 | 358 |
Amortization of: Prior service cost (benefit) | 242 | 234 |
Net periodic retirement pension (benefit) cost | (1,488) | (682) |
Other Countries [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 729 | 710 |
Interest cost | 333 | 321 |
Expected return on plan assets | (602) | (832) |
Amortization of: Net actuarial loss | 228 | 261 |
Amortization of: Prior service cost (benefit) | 6 | 6 |
Net periodic retirement pension (benefit) cost | 694 | 466 |
Contributions paid | $ 543 | $ 1,131 |
Retirement Benefits (Schedule_3
Retirement Benefits (Schedule of Estimated Remaining Cash Contributions) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Other Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the currect fiscal year | $ 3,075 |
United Kingdom | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the currect fiscal year | 512 |
Germany [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the currect fiscal year | $ 868 |
Retirement Benefits (Schedule_4
Retirement Benefits (Schedule of Amounts of Contributions Associated with Multiemployer Defined Benefit Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||
Company contributions | $ 68 | $ 70 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | Jan. 29, 2020 | Dec. 31, 2020 | Sep. 30, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 16,759 | ||
Forfeiture rate, Board of Directors | 0.00% | ||
Forfeiture rate, non-Board of Directors | 7.30% | ||
Unrecognized compensation cost is expected to be recognized over a weighted-average period | 2 years 3 months 18 days | ||
2017 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of additional shares available for future grants | 1,000 | ||
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vested contractual term, in years | 10 years | ||
Vesting period, in years | 4 years | ||
Stock Options [Member] | Share-based Payment Arrangement, Tranche One [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting rate | 25.00% | ||
2017 Authorization [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Repurchase period in years | 3 years | ||
2017 Authorization [Member] | 2017 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares available for future grants | 1,228 | 1,972 | |
2019 Authorization [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Repurchase period in years | 3 years | ||
Maximum [Member] | 2017 Authorization [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock repurchase program authorized amount | $ 500,000 | ||
Maximum [Member] | 2019 Authorization [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock repurchase program authorized amount | $ 500,000 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards) (Details) - Stock Options [Member] - $ / shares | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted-average exercise price per share | $ 81.06 | $ 104.82 |
Weighted-average grant date market value of Woodward stock | $ 81.06 | $ 104.82 |
Estimated dividend yield | 0.60% | |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (years) | 6 years 6 months | 6 years 4 months 24 days |
Estimated volatility | 33.30% | 25.70% |
Estimated dividend yield | 0.30% | |
Risk-free interest rate | 0.40% | 1.60% |
Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (years) | 8 years 8 months 12 days | 8 years 8 months 12 days |
Estimated volatility | 36.10% | 30.10% |
Estimated dividend yield | 0.40% | |
Risk-free interest rate | 0.60% | 1.70% |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Activity for Stock Option Awards) (Details) - Stock Options [Member] shares in Thousands | 3 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of options, beginning balance | shares | 5,443 |
Options granted, Number of options | shares | 747 |
Options exercised, Number of options | shares | (286) |
Options forfeited, Number of options | shares | (3) |
Number of options, ending balance | shares | 5,901 |
Weighted Average Exercise Price Per Share, beginning balance | $ / shares | $ 62 |
Options granted, Weighted Average Exercise Price Per Share | $ / shares | 81.06 |
Options exercised, Weighted Average Exercise Price Per Share | $ / shares | 39.82 |
Options forfeited, Weighted Average Exercise Price Per Share | $ / shares | 87.38 |
Weighted Average Exercise Price Per Share, ending balance | $ / shares | $ 65.47 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Non-vested Stock Options) (Details) - Stock Options [Member] shares in Thousands | 3 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Options, beginning balance | shares | 2,078 |
Options granted, Number of options | shares | 747 |
Options vested, Number of options | shares | (652) |
Options forfeited, Number of options | shares | (3) |
Number of Options, ending balance | shares | 2,170 |
Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ / shares | $ 24.69 |
Options granted, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 27.73 |
Options vested, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 25.81 |
Options forfeited, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 25.18 |
Weighted-Average Grant Date Fair Value Per Share, ending balance | $ / shares | $ 25.40 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Options Vested, or Expected to Vest and Exercisable) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options outstanding, Number of options | 5,901 | 5,443 |
Options vested and exercisable, Number of options | 3,731 | |
Options vested and expected to vest, Number of options | 5,797 | |
Options outstanding, Weighted-Average Exercise Price | $ 65.47 | $ 62 |
Options vested and exercisable, Weighted-Average Exercise Price Per Share | 55.73 | |
Options vested and expected to vest, Weighted-Average Exercise Price Per Share | $ 65.20 | |
Options outstanding, Weighted-Average Remaining Life in Years | 6 years 4 months 24 days | |
Options vested and exercisable, Weighted-Average Remaining Life in Years | 5 years | |
Options vested and expected to vest, Weighted-Average Remaining Life in Years | 6 years 3 months 18 days | |
Options outstanding, Aggregate Intrinsic Value | $ 330,818 | |
Options vested and exercisable, Aggregate Intrinsic Value | 245,492 | |
Options vested and expected to vest, Aggregate Intrinsic Value | $ 326,577 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Information (Summary of
Segment Information (Summary of Consolidated Net Sales and Earnings by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total net sales | $ 537,619 | $ 720,355 |
Interest expense, net | (8,411) | (8,522) |
Consolidated earnings before income taxes | 47,584 | 61,548 |
Aerospace [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 321,667 | 473,925 |
Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 215,952 | 246,430 |
Operating Segments [Member] | Aerospace [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 321,667 | 473,925 |
Segment earnings (loss) | 46,466 | 92,911 |
Operating Segments [Member] | Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 215,952 | 246,430 |
Segment earnings (loss) | 32,888 | 28,230 |
Unallocated Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment earnings (loss) | $ (23,359) | $ (51,071) |
Segment Information (Summary _2
Segment Information (Summary of Consolidated Total Assets by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 3,959,505 | $ 3,903,336 |
Property, plant and equipment, net | 986,030 | 997,415 |
Other assets | 271,621 | 265,435 |
Unallocated Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 103,830 | 106,380 |
Other assets | 576,966 | 515,029 |
Aerospace [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 1,717,820 | 1,752,516 |
Industrial [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 1,560,889 | $ 1,529,411 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] | Jan. 27, 2021$ / shares |
Subsequent Event [Line Items] | |
Dividend per share | $ 0.1625 |
Dividend, payable date | Mar. 8, 2021 |
Dividend, record date | Feb. 22, 2021 |