Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Nov. 17, 2022 | Mar. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2022 | ||
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 Public Float | $ 5,399,170 | ||
Entity Common Stock, Shares Outstanding | 59,763,750 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000108312 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Document Fiscal Year Focus | 2022 | ||
ICFR Auditor Attestation Flag | false | ||
Documents Incorporated by Reference | Portions of our proxy statement for the Annual Meeting of Stockholders to be held virtually on January 25, 2023, are incorporated by reference into Parts II and III of this Form 10-K, to the extent indicated. | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | Denver, Colorado | ||
Auditor Firm ID | 34 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 2,382,790 | $ 2,245,832 | $ 2,495,665 |
Costs and expenses: | |||
Cost of goods sold | 1,857,485 | 1,694,774 | 1,855,422 |
Selling, general and administrative expenses | 203,005 | 186,866 | 217,710 |
Research and development costs | 119,782 | 117,091 | 133,134 |
Impairment of assets sold | 37,902 | ||
Restructuring activities | (3,420) | 5,008 | 22,216 |
Gain on cross-currency interest rate swaps, net | (30,481) | ||
Interest expense | 34,545 | 34,282 | 35,811 |
Interest income | (1,814) | (1,495) | (1,764) |
Other (income) expense, net | (26,691) | (36,493) | (56,166) |
Total costs and expenses | 2,182,892 | 2,000,033 | 2,213,784 |
Earnings before income taxes | 199,898 | 245,799 | 281,881 |
Income tax expense | 28,200 | 37,150 | 41,486 |
Net earnings | $ 171,698 | $ 208,649 | $ 240,395 |
Earnings per share: | |||
Basic earnings per share | $ 2.79 | $ 3.30 | $ 3.86 |
Diluted earnings per share | $ 2.71 | $ 3.18 | $ 3.74 |
Weighted Average Common Shares Outstanding: | |||
Basic | 61,517 | 63,287 | 62,267 |
Diluted | 63,254 | 65,555 | 64,209 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consolidated Statements of Comprehensive Earnings | |||
Net earnings | $ 171,698 | $ 208,649 | $ 240,395 |
Other comprehensive earnings: | |||
Foreign currency translation adjustments | (63,026) | 8,628 | 15,668 |
Net gain (loss) on foreign currency transactions designated as hedges of net investments in foreign subsidiaries | 7,206 | 592 | (3,199) |
Taxes on changes on foreign currency translation adjustments | 2,230 | (1,433) | 75 |
Foreign currency translation and transactions adjustments, net of tax | (53,590) | 7,787 | 12,544 |
Unrealized gain (loss) on fair value adjustment of derivative instruments | 89,048 | (1,672) | (18,262) |
Reclassification of net realized (gains) losses on derivatives to earnings | (68,880) | (3,702) | 2,134 |
Taxes on changes on derivative transactions | (786) | 234 | 626 |
Derivative adjustments, net of tax | 19,382 | (5,140) | (15,502) |
Minimum retirement benefit liability adjustments: | |||
Net gain arising during the period | 6,318 | 27,809 | 20,179 |
Prior service cost arising during the period | (611) | ||
Amortization of: | |||
Prior service cost | 1,004 | 995 | 962 |
Net loss | 720 | 1,502 | 2,523 |
Foreign currency exchange rate changes on minimum retirement benefit liabilities | 1,158 | (855) | (1,672) |
Taxes on changes on minimum retirement benefit liability adjustments | (1,936) | (7,312) | (5,522) |
Pension and other postretirement benefit plan adjustments, net of tax | 7,264 | 21,528 | 16,470 |
Total comprehensive earnings | $ 144,754 | $ 232,824 | $ 253,907 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Current assets: | ||
Cash and cash equivalents, including restricted cash of $0 and $1,907, respectively | $ 107,844 | $ 448,462 |
Accounts receivable, less allowance for uncollectible amounts of $3,922 and $3,664, respectively | 609,964 | 523,051 |
Inventories | 514,287 | 419,971 |
Income taxes receivable | 5,179 | 12,071 |
Other current assets | 74,695 | 61,168 |
Total current assets | 1,311,969 | 1,464,723 |
Property, plant and equipment, net | 910,472 | 950,569 |
Goodwill | 772,559 | 805,333 |
Intangible assets, net | 460,580 | 559,289 |
Deferred income tax assets | 23,447 | 14,066 |
Other assets | 327,419 | 297,024 |
Total assets | 3,806,446 | 4,091,004 |
Current liabilities: | ||
Short-term debt | 66,800 | |
Current portion of long-term debt | 856 | 728 |
Accounts payable | 230,519 | 170,909 |
Income taxes payable | 34,655 | 11,481 |
Accrued liabilities | 206,283 | 183,139 |
Total current liabilities | 539,113 | 366,257 |
Long-term debt, less current portion | 709,760 | 734,122 |
Deferred income tax liabilities | 127,195 | 157,936 |
Other liabilities | 529,256 | 617,908 |
Total liabilities | 1,905,324 | 1,876,223 |
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 | 293,540 | 261,735 |
Accumulated other comprehensive losses | (92,563) | (65,619) |
Deferred compensation | 6,781 | 7,949 |
Retained earnings | 2,727,233 | 2,600,513 |
Stockholders' equity | 2,935,097 | 2,804,684 |
Treasury stock at cost, 13,207 shares and 9,702 shares, respectively | (1,027,194) | (581,954) |
Treasury stock held for deferred compensation, at cost, 139 shares and 167 shares, respectively | (6,781) | (7,949) |
Total stockholders' equity | 1,901,122 | 2,214,781 |
Total liabilities and stockholders' equity | $ 3,806,446 | $ 4,091,004 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Current assets: | ||
Restricted cash | $ 0 | $ 1,907 |
Allowance, accounts receivable | $ 3,922 | $ 3,664 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.003 | $ 0.003 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001455 | $ 0.001455 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 72,960,000 | 72,960,000 |
Treasury stock, shares | 13,207,000 | 9,702,000 |
Treasury stock held for deferred compensation, shares | 139,000 | 167,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | |||
Net earnings | $ 171,698 | $ 208,649 | $ 240,395 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 120,628 | 129,524 | 131,158 |
Impairment of assets sold | 37,902 | ||
Net (gain) on sales of assets and businesses | (1,775) | (4,452) | (23,598) |
Gain on cross-currency interest rate swaps, net | (30,481) | ||
Stock-based compensation | 20,109 | 21,475 | 22,902 |
Deferred income taxes | (23,226) | (11,964) | 1,311 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (54,380) | 41,241 | 52,095 |
Unbilled receivables (contract assets) | (44,451) | (16,491) | (22,028) |
Costs to fulfill a contract | (17,118) | (19,761) | (27,446) |
Inventories | (110,196) | 18,871 | 61,019 |
Accounts payable and accrued liabilities | 122,963 | 61,793 | (153,318) |
Contract liabilities | 12,466 | 24,848 | 25,882 |
Income taxes | 29,644 | 21,509 | (37,099) |
Retirement benefit obligations | (4,424) | (6,848) | (3,777) |
Other | (28,300) | (3,725) | 74,574 |
Net cash provided by operating activities | 193,638 | 464,669 | 349,491 |
Cash flows from investing activities: | |||
Payments for purchase of property, plant, and equipment | (52,868) | (37,689) | (47,087) |
Proceeds from sale of assets | 43 | 154 | 30,173 |
Payments for business acquisition, net of cash acquired | (21,549) | ||
Proceeds from business divestiture | 6,000 | 10,443 | |
Proceeds from sales of short-term investments | 12,557 | 16,575 | 12,700 |
Payments for purchases of short-term investments | (9,632) | (14,337) | (13,109) |
Net cash used in investing activities | (65,449) | (35,297) | (6,880) |
Cash flows from financing activities: | |||
Cash dividends paid | (44,978) | (36,041) | (37,664) |
Proceeds from sales of treasury stock | 21,897 | 34,706 | 24,969 |
Payments for repurchases of common stock | (485,300) | (33,344) | (13,346) |
Borrowings on revolving lines of credit and short-term borrowings | 952,000 | 74,400 | 1,248,135 |
Payments on revolving lines of credit and short-term borrowings | (885,200) | (74,400) | (1,510,746) |
Payments of long-term debt and finance lease obligations | (797) | (101,639) | (1,590) |
Net cash used in financing activities | (442,378) | (136,318) | (290,242) |
Effect of exchange rate changes on cash and cash equivalents | (26,429) | 2,138 | 1,828 |
Net change in cash and cash equivalents | (340,618) | 295,192 | 54,197 |
Cash and cash equivalents, including restricted cash, at beginning of year | 448,462 | 153,270 | 99,073 |
Cash and cash equivalents, including restricted cash, at end of year | $ 107,844 | $ 448,462 | $ 153,270 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock at Cost [Member] | Treasury Stock Held for Deferred Compensation [Member] | Additional Paid-in Capital [Member] | Foreign Currency Translation Adjustments [Member] | Unrealized Derivative Gains (Losses) [Member] | Minimum Retirement Benefit Liability Adjustments [Member] | Total Accumulated Other Comprehensive (Loss) Earnings [Member] | Deferred Compensation [Member] | Retained Earnings [Member] |
Balances at Sep. 30, 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) | ||||||||||
Cumulative effect from adoption (Accounting Standards Update 2014-09) at Sep. 30, 2019 | 255 | 255 | |||||||||
Net earnings | 240,395 | 240,395 | |||||||||
Other comprehensive earnings (loss), net of tax | 13,512 | 12,544 | (15,502) | 16,470 | 13,512 | ||||||
Cash dividends paid | (37,664) | (37,664) | |||||||||
Purchases of treasury stock | (13,346) | $ (13,346) | |||||||||
Purchases of treasury stock, shares | (124,000) | ||||||||||
Sales of treasury stock | 25,134 | $ 32,640 | (7,506) | ||||||||
Sales of treasury stock, shares | 763,000 | ||||||||||
Common shares issued from treasury stock for benefit plans | 14,748 | $ 5,328 | 9,420 | ||||||||
Common shares issued from treasury stock for benefit plans, shares | 124,000 | ||||||||||
Stock-based compensation | 22,902 | 22,902 | |||||||||
Purchases and transfers of stock by/to deferred compensation plan | $ (681) | 681 | |||||||||
Purchases and transfer of stock by/to deferred compensation plan, shares | (6,000) | ||||||||||
Distribution of stock from deferred compensation plan | $ 841 | (841) | |||||||||
Distribution of stock from deferred compensation plan, shares | 18,000 | ||||||||||
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 | ||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2020 | (10,277,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, shares at Sep. 30, 2020 | (199,000) | ||||||||||
Net earnings | 208,649 | 208,649 | |||||||||
Other comprehensive earnings (loss), net of tax | 24,175 | 7,787 | (5,140) | 21,528 | 24,175 | ||||||
Cash dividends paid | (36,041) | (36,041) | |||||||||
Purchases of treasury stock | (45,860) | $ (45,860) | |||||||||
Purchases of treasury stock, shares | (404,000) | ||||||||||
Sales of treasury stock | 34,806 | $ 36,024 | (1,218) | ||||||||
Sales of treasury stock, shares | 851,000 | ||||||||||
Common shares issued from treasury stock for benefit plans | 14,900 | $ 5,358 | 9,542 | ||||||||
Common shares issued from treasury stock for benefit plans, shares | 128,000 | ||||||||||
Stock-based compensation | 21,475 | 21,475 | |||||||||
Purchases and transfers of stock by/to deferred compensation plan | $ (393) | 393 | |||||||||
Purchases and transfer of stock by/to deferred compensation plan, shares | (3,000) | ||||||||||
Distribution of stock from deferred compensation plan | $ 1,666 | (1,666) | |||||||||
Distribution of stock from deferred compensation plan, shares | 35,000 | ||||||||||
Balances at Sep. 30, 2021 | $ 2,214,781 | $ 106 | $ (581,954) | $ (7,949) | 261,735 | (32,904) | (25,597) | (7,118) | (65,619) | 7,949 | 2,600,513 |
Balance, Common Stock, shares at Sep. 30, 2021 | 72,960,000 | 72,960,000 | |||||||||
Balance, Treasury Stock, shares at Sep. 30, 2021 | (9,702,000) | (9,702,000) | |||||||||
Balance, Treasury stock held for deferred compensation, shares at Sep. 30, 2021 | (167,000) | (167,000) | |||||||||
Net earnings | $ 171,698 | 171,698 | |||||||||
Other comprehensive earnings (loss), net of tax | (26,944) | (53,590) | 19,382 | 7,264 | (26,944) | ||||||
Cash dividends paid | (44,978) | (44,978) | |||||||||
Purchases of treasury stock | (472,784) | $ (472,784) | |||||||||
Purchases of treasury stock, shares | (4,123,000) | ||||||||||
Sales of treasury stock | 22,108 | $ 20,977 | 1,131 | ||||||||
Sales of treasury stock, shares | 468,000 | ||||||||||
Common shares issued from treasury stock for benefit plans | 17,132 | $ 6,567 | 10,565 | ||||||||
Common shares issued from treasury stock for benefit plans, shares | 150,000 | ||||||||||
Stock-based compensation | 20,109 | 20,109 | |||||||||
Purchases and transfers of stock by/to deferred compensation plan | $ (252) | 252 | |||||||||
Purchases and transfer of stock by/to deferred compensation plan, shares | (3,000) | ||||||||||
Distribution of stock from deferred compensation plan | $ 1,420 | (1,420) | |||||||||
Distribution of stock from deferred compensation plan, shares | 31,000 | ||||||||||
Balances at Sep. 30, 2022 | $ 1,901,122 | $ 106 | $ (1,027,194) | $ (6,781) | $ 293,540 | $ (86,494) | $ (6,215) | $ 146 | $ (92,563) | $ 6,781 | $ 2,727,233 |
Balance, Common Stock, shares at Sep. 30, 2022 | 72,960,000 | 72,960,000 | |||||||||
Balance, Treasury Stock, shares at Sep. 30, 2022 | (13,207,000) | (13,207,000) | |||||||||
Balance, Treasury stock held for deferred compensation, shares at Sep. 30, 2022 | (139,000) | (139,000) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends per share | $ 0.7325 | $ 0.5688 | $ 0.6050 |
Operations and Summary of Signi
Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Operations and Summary of Significant Accounting Policies | Note 1. Operations and summary of significant accounting policies Basis of presentation The Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Woodward, Inc. and its subsidiaries (collectively “Woodward” or “the Company”). Dollar amounts contained in these Consolidated Financial Statements are in thousands, except per share amounts. Nature of operations Woodward is an independent designer, manufacturer, and service provider of energy control and optimization solutions. Woodward designs, produces and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in challenging environments. Woodward has significant production and assembly facilities primarily in the United States, Europe and Asia, and promotes its products and services through its worldwide locations. Woodward’s strategic focus is providing energy control and optimization solutions for the aerospace and industrial markets. The precise and efficient control of energy, including motion, fluid, combustion and electrical energy, is a growing requirement in the markets Woodward serves. Woodward’s customers look to it to optimize the efficiency, emissions and operation of power equipment in both commercial and defense operations. Woodward’s core technologies leverage well across its markets and customer applications, enabling it to develop and integrate cost-effective and state-of-the-art fuel, combustion, fluid, actuation and electronic systems. Woodward focuses its solutions and services primarily on serving original equipment manufacturers (“OEMs”) and equipment packagers, partnering with them to bring superior component and system solutions to their demanding applications. Woodward also provides aftermarket repair, maintenance, replacement and other service support for its installed products. Woodward’s components and integrated systems optimize performance of commercial aircraft, defense aircraft, military ground vehicles and other equipment, gas and steam turbines, industrial diesel, gas, biodiesel and dual-fuel reciprocating engines, and electrical power systems. Woodward’s innovative motion, fluid, combustion and electrical energy control systems help its customers offer more cost-effective, cleaner, and more reliable equipment. Global Business Conditions We continue to monitor a variety of external issues impacting our business, including ongoing global supply chain and labor disruptions and rising labor and material inflation which together have led to a challenging industry-wide operating environment. In fiscal year 2022 we experienced strong demand for our products and services, although our financial performance during fiscal year 2022 was adversely impacted by these issues. We are actively implementing strategies to mitigate our supply chain risk to better position us for future success. We also continue to assess the environment and are taking appropriate price actions in response to rising costs; however, the timing of many price increases can be delayed due to various pre-existing contractual arrangements. We remain focused on operational excellence initiatives, talent development and innovation to help drive the company forward and create value for our stockholders. We are unable to predict the full extent to which these issues will continue to adversely impact our business, including our operational performance, results of operations, cash flows, financial position, and the achievement of our strategic objectives. Such uncertainty may affect our ability to accurately predict our future performance and financial results. We may take further actions to alter our business operations if we determine such actions are in the best interests of our stockholders, employees, customers and other stakeholders as appropriate. It is not currently clear what the potential effects of any such alterations or modifications may have on our business in future periods, including the effects on our customers, employees and prospects, or on our financial results. Summary of significant accounting policies Principles of consolidation: These Consolidated Financial Statements are prepared in accordance with U.S. GAAP and include the accounts of Woodward and its wholly and majority-owned subsidiaries. Transactions within and between these companies are eliminated. Use of estimates: The preparation of the Consolidated Financial Statements requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, at the date of the financial statements and the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures. Significant estimates include allowances for uncollectible amounts, net realizable value of inventories, customer rebates earned, useful lives of property and identifiable intangible assets, the evaluation of impairments of property, identifiable intangible assets and goodwill, the provision for income tax and related valuation reserves, the valuation of assets and liabilities acquired in business combinations, assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans, the valuation of stock compensation instruments granted to employees, and contingencies. Actual results could differ from those estimates. Foreign currency exchange rates: The assets and liabilities of substantially all subsidiaries outside the United States are translated at fiscal year-end rates of exchange, and earnings and cash flow statements are translated at weighted-average rates of exchange. The exchange rate in effect at the time of the cash flow is used for significant or infrequent cash flows, such as payments for a business acquisition, for which the use of weighted-average rates of exchange would result in a substantially different cash flow. Translation adjustments are accumulated with other comprehensive (losses) earnings as a separate component of stockholders’ equity and are presented net of tax effects in the Consolidated Statements of Stockholders’ Equity. The effects of changes in foreign currency exchange rates on loans between consolidated subsidiaries that are considered permanent in nature are also accumulated with other comprehensive earnings, net of tax. The Company is exposed to market risks related to fluctuations in foreign currency exchange rates because some sales transactions, and certain assets and liabilities of its domestic and foreign subsidiaries, are denominated in foreign currencies. Selling, general, and administrative expenses include a net foreign currency gain of $1,450 in fiscal year 2022, a net foreign currency loss of $1,986 in fiscal year 2021, and a net foreign currency gain of $194 in fiscal year 2020. Revenue recognition: Revenue is recognized on contracts with customers for arrangements in which quantities and pricing are fixed and/or determinable and are generally based on customer purchase orders, often within the framework of a long-term supply arrangement with the customer. Woodward has determined that it is the principal in its sales transactions, as Woodward is primarily responsible for fulfilling the promised performance obligations, has discretion to establish the selling price, and generally assumes the inventory risk. Woodward recognizes revenue for performance obligations within a customer contract when control of the associated product or service is transferred to the customer. Some of Woodward’s contracts with customers contain a single performance obligation, while other contracts contain multiple performance obligations. Each product within a contract generally represents a separate performance obligation as Woodward does not provide significant installation and integration services, the products do not customize each other, and the products can function independently of each other. A contract's transaction price is allocated to each performance obligation and recognized as revenue when, or as, the customer obtains control of the associated product or service. When there are multiple performance obligations within a contract, Woodward generally uses the observable standalone sales price for each distinct product or service within the contract to allocate the transaction price to the distinct products or services. In instances when a standalone sales price for each product or service is not observable within the contract, Woodward allocates the transaction price to each performance obligation using an estimate of the standalone selling price for each product or service, which is generally based on incurred costs plus a reasonable margin, for each distinct product or service in the contract. When determining the transaction price of each contract, Woodward considers contractual consideration payable by the customer and variable consideration that may affect the total transaction price. Variable consideration, consisting of early payment discounts, rebates and other sources of price variability, are included in the estimated transaction price based on both customer-specific information as well as historical experience. Customers sometimes trade in used products in exchange for new or refurbished products. In addition, Woodward’s customers sometimes provide inventory to Woodward which will be integrated into final products sold to those customers. Woodward obtains control of these exchanged products and customer provided inventory, and therefore, both are forms of noncash consideration. Noncash consideration paid by customers on overall sales transactions is additive to the transaction price. Woodward’s net sales and cost of goods sold include the value of such noncash consideration for the same amount, with no resulting impact to earnings before income taxes. Upon receipt of such inventory, Woodward recognizes an inventory asset and a contract liability. Point in time and over time revenue recognition: Control of the products generally transfers to the customer at a point in time, as the customer does not control the products as they are produced. Performance obligations are satisfied and revenue is recognized over time if: (i) the customer receives the benefits as Woodward performs work, if the customer controls the asset as it is being enhanced, or if the product being produced for the customer has no alternative use to Woodward; and (ii) Woodward has an enforceable right to payment with a profit. For products being produced for the customer that have no alternative use to Woodward and Woodward has an enforceable right to payment with a profit, and where the products are substantially the same and have the same pattern of transfer to the customer, revenue is recognized as a series of distinct products. As Woodward satisfies manufacturing, repair and overhaul (“MRO”) performance obligations, revenue is recognized over time, as the customer, rather than Woodward, controls the asset being enhanced . When services are provided, revenue from those services is recognized over time because control is transferred continuously to customers as Woodward performs the work . For services that are not short-term in nature, MRO, and sales of products that have no alternative use to Woodward and an enforceable right to payment with a profit, Woodward uses an actual cost input measure to determine the extent of progress towards completion of the performance obligation. For these revenue streams, revenue is recognized over time as work is performed based on the relationship between actual costs incurred to-date for each contract and the total estimated costs for such contract at completion of the performance obligation (the cost-to-cost method). Woodward has concluded that this measure of progress best depicts the transfer of assets to the customer, because incurred costs are integral to Woodward’s completion of the performance obligation under the specific customer contract and correlate directly to the transfer of control to the customer. Contract costs include labor, material and overhead. Contract cost estimates are based on various assumptions to project the outcome of future events. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, Woodward recognizes provisions for estimated losses on uncompleted contracts in the period in which such losses are determined. In situations where the creditworthiness of a customer becomes in doubt, Woodward ceases to recognize the over-time revenue on the associated customer contract. Occasionally, Woodward sells maintenance or service arrangements, extended warranties, or other stand ready services. Woodward recognizes revenue from such arrangements as a series of performance obligations over the time period in which the services are available to the customer. Purchase accounting : Business combinations are accounted for using the purchase method of accounting. Under this method, assets and liabilities, including intangible assets, are recorded at their fair values as of the acquisition date. Acquisition costs in excess of amounts assigned to assets acquired and liabilities assumed are recorded as goodwill. Transaction-related costs associated with business combinations are expensed as incurred. Material Rights and Costs to Fulfill a Contract : Customers sometimes pay consideration to Woodward for product engineering and development activities that do not result in the immediate transfer of distinct products or services to the customer. There is an implicit assumption that without the customer making such advance payments to Woodward, Woodward’s future sales of products or services to the customer would be at a higher selling price; therefore, such payments create a “material right” to the customer that effectively gives the customer an option to acquire future products or services, at a discount, that are dependent upon the product engineering and development. Material rights are recorded as contract liabilities and will be recognized when control of the related products or services are transferred to the customer. Woodward capitalizes costs of product engineering and development identified as material rights up to the amount of customer funding as costs to fulfill a contract because the costs incurred up to the amount of the customer funding commitment are recoverable. Due to the uncertainty of the product success and/or demand, fulfillment costs in excess of the customer funding are expensed as incurred. Woodward recognizes the deferred material rights as revenue based on a percentage of actual sales to total estimated lifetime sales of the related developed products as the customers exercise their option to acquire additional products or services at a discount. Woodward amortizes the capitalized costs to fulfill a contract as cost of goods sold proportionally to the recognition of the associated deferred material rights. Estimated total lifetime sales are reviewed at least annually and more frequently when circumstances warrant a modification to the previous estimate. Woodward does not capitalize incremental costs of obtaining a contract, as Woodward does not pay sales commissions or incur other incremental costs related to contracts with Woodward’s customers for arrangements in which quantities and pricing are fixed and/or determinable. Contract liabilities: Advance payments and billings in excess of revenue recognized represent contract liabilities and are recorded as deferred revenues when customers remit contractual cash payments in advance of Woodward satisfying performance obligations under contractual arrangements, including those with performance obligations satisfied over time. Woodward generally receives advance payments from customers related to maintenance or service arrangements, extended warranties, or other stand ready services, which it recognizes over the performance period. Contract liabilities are satisfied when revenue is recognized and the performance obligation is satisfied. Advance payments and billings in excess of revenue recognized are included in deferred revenue, which is classified as current or noncurrent based on the timing of when Woodward expects to recognize revenue. Customer payments : Woodward occasionally agrees to make payments to certain customers in order to participate in anticipated sales activity. Payments made to customers are accounted for as a reduction of revenue unless they are made in exchange for identifiable goods or services with fair values that can be reasonably estimated. Reductions in revenue associated with these customer payments are recognized immediately to the extent that the payments cannot be attributed to anticipated future sales, and are recognized in future periods to the extent that the payments relate to anticipated future sales. Such determinations are based on the facts and circumstances underlying each payment. Stock-based compensation: Compensation cost relating to stock-based payment awards made to employees and directors is recognized in the financial statements using a fair value method. Non-qualified stock option awards and restricted stock awards are issued under Woodward’s stock-based compensation plans. The cost of such awards, measured at the grant date, is based on the estimated fair value of the award. Forfeitures are estimated at the time of each grant in order to estimate the portion of the award that will ultimately vest. The estimate is based on Woodward’s historical rates of forfeitures and is updated periodically. The portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods, which is generally the vesting period of the awards. Research and development costs: Company funded expenditures related to new product development, and significant product enhancement and/or upgrade activities are expensed as incurred and are separately reported in the Consolidated Statements of Earnings Income taxes: Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of Woodward’s assets, liabilities, and certain unrecognized gains and losses recorded in accumulated other comprehensive (losses) earnings. Woodward provides for taxes that may be payable if undistributed earnings of overseas subsidiaries were to be remitted to the United States, except for those earnings that it considers to be indefinitely invested Cash equivalents: Highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. Accounts receivable: Almost all of Woodward’s sales are made on credit and result in accounts receivable, which are recorded at the amount invoiced and are generally not collateralized. In the normal course of business, not all accounts receivable are collected and, therefore, an allowance for uncollectible amounts is provided equal to the amount that Woodward believes ultimately will not be collected, either from credit risk or other adjustments to the original selling price or anticipated cash discounts. In establishing the amount of the allowance related to the credit risk of accounts receivable, customer-specific information is considered related to delinquent accounts, past loss experience, bankruptcy filings, deterioration in the customer’s operating results or financial position, current and forecasted economic conditions, and other relevant factors. Bad debt losses are deducted from the allowance, and the related accounts receivable balances are written off when the receivables are deemed uncollectible. Recoveries of accounts receivable previously written off are recognized when received. The allowance associated with anticipated other adjustments to the selling price or cash discounts is also established and is included in the allowance for uncollectible amounts. In establishing this amount, both customer-specific information as well as historical experience is considered. In coordination with its customers and when terms are considered favorable to Woodward, Woodward from time-to-time transfers ownership to collect amounts due to Woodward for outstanding accounts receivable to third parties in exchange for cash. When the transfer of accounts receivable meets the criteria of Financial Accounting Standards Board (“FASB”) ASC Topic 860-10, “Transfers and Servicing,” and are without recourse, it is recognized as a sale and the accounts receivable is derecognized. Unbilled receivables (contract assets) arise when the timing of billing differs from the timing of revenue recognized, such as when contract provisions require revenue to be recognized over time rather than at a point in time. Unbilled receivables primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to payment in accordance with contractual terms. Unbilled receivables are recorded as a contract asset when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Consistent with common business practice in China, Woodward’s Chinese subsidiaries accept bankers’ acceptance notes from Chinese customers in settlement of certain customer billed accounts receivable. Bankers’ acceptance notes are financial instruments issued by Chinese financial institutions as part of financing arrangements between the financial institution and a customer of the financial institution. Bankers’ acceptance notes represent a commitment by the issuing financial institution to pay a certain amount of money at a specified future maturity date to the legal owner of the bankers’ acceptance note as of the maturity date. The maturity date of bankers’ acceptance notes varies, but it is Woodward’s policy to only accept bankers’ acceptance notes with maturity dates no more than 180 days from the date of Woodward’s receipt of such draft. Woodward has elected to adopt the practical expedient to not adjust the promised amounts of consideration for the effects of a significant financing component at contract inception as the financing component associated with accepting bankers’ acceptance notes has a duration of less than one year. Woodward’s contracts with customers generally have no other financing components. For composition of accounts receivable, see Note 3, Revenue. Inventories: Inventories are valued at the lower of cost or net realizable value, with cost being determined using methods that approximate a first-in, first-out basis. Short-term investments: From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. Amounts with maturities of less than 365 days are classified as “Other current assets.” Property, plant, and equipment: Property, plant, and equipment are recorded at cost and are depreciated over the estimated useful lives of the assets. Assets are generally depreciated using the straight-line method. Assets are tested for recoverability whenever events or circumstances indicate the carrying value may not be recoverable. Estimated lives over which fixed assets are generally depreciated at September 30, 2022 were as follows: Land improvements 3 – 20 years Buildings and improvements 3 – 40 years Leasehold improvements 1 – 10 years Machinery and production equipment 3 – 20 years Computer equipment and software 1 – 10 years Office furniture and equipment 3 – 10 years Other 3 – 10 years Included in computer equipment and software are Woodward’s enterprise resource planning (“ERP”) systems, which have an estimated useful life of 15 years. All other computer equipment and software is generally depreciated over three years to five years. Leases: Right-of-use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the remaining fixed lease payments over the lease term. In determining the estimated present value of lease payments, Woodward discounts the fixed lease payments using the rate implicit in the agreement or, if the implicit rate is not known, using the incremental borrowing rate. Woodward’s incremental borrowing rate is based on the information available at the lease commencement date, with consideration given to Woodward’s recent debt issuances as well as publicly available data for instruments with similar characteristics. For operating leases, lease expense is recognized over the expected lease term and classified as a cost of goods sold or selling, general and administrative expense based on the nature of the underlying leased asset. For finance leases, the ROU asset is recognized over the shorter of the useful life of the asset, consistent with Woodward’s normal depreciation policy, or the lease term, and is classified as a cost of goods sold, selling, general and administrative expense, or research and development expense, based on the nature and use of the underlying leased asset. Certain of Woodward’s operating lease agreements include variable payments that are passed through by the landlord, such as insurance, taxes, and common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. Pass-through charges, payments due to changes in usage of the asset, and payments due to changes in indexation are included within variable rent expense and are recognized in the period in which the variable obligation for the payments was incurred. Goodwill: Woodward tests goodwill for impairment at the reporting unit level on an annual basis and more often if an event occurs or circumstances change that indicates the fair value of a reporting unit may be below its carrying amount. Based on the relevant U.S. GAAP authoritative guidance, Woodward aggregates components of a single operating segment into a reporting unit, if appropriate. The impairment test consists of comparing the implied fair value of each reporting unit with its carrying amount that includes goodwill. If the carrying amount of the reporting unit exceeds its implied fair value, Woodward compares the implied fair value of goodwill with the recorded carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value of goodwill, an impairment loss would be recognized to reduce the carrying amount to its implied fair value. Based on the results of Woodward’s annual goodwill impairment testing, no impairment charges were recorded in the year ended September 30, 2022 or since the goodwill was originally recorded due to the annual goodwill impairment test. Other intangibles: Other intangibles are recognized apart from goodwill whenever an acquired intangible asset arises from contractual or other legal rights, or whenever it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset, or liability. Woodward amortizes the cost of other intangibles over their useful lives unless such lives are deemed indefinite. The cost of finite-lived other intangibles are amortized over their respective useful life using patterns that reflect the periods over which the economic benefits of the assets are expected to be realized. Amortization expense is allocated to cost of goods sold and selling, general, and administrative expenses based on the nature of the intangible asset. Finite-lived other intangible assets are reviewed for impairment whenever an event occurs or circumstances change indicating that the related carrying amount of the other intangible asset may not be recoverable. Impairment losses are recognized if the carrying amount of an intangible is both not recoverable and exceeds its fair value. Woodward has recorded no impairment charges related to its other intangibles as of September 30, 2022. Estimated lives over which intangible assets are amortized at September 30, 2022 were as follows: Customer relationships and contracts 11 – 30 years Intellectual property 15 – 17 years Process technology 10 – 30 years Other 5 – 5 years Woodward has one indefinitely lived intangible asset consisting of the Woodward L’Orange trade name. The Woodward L’Orange trade name intangible asset is tested for impairment on an annual basis and more often if an event occurs or circumstances change that indicate the fair value of the Woodward L’Orange intangible asset may be below its carrying amount. The impairment test consists of comparing the fair value of the Woodward L’Orange trade name intangible asset, determined using discounted cash flows, with its carrying amount. If the carrying amount of the Woodward L’Orange intangible asset exceeds its fair value, an impairment loss would be recognized to reduce the carrying amount to its fair value. Woodward has not recorded any impairment charges. Impairment of long-lived assets: Woodward reviews the carrying amount of its long-lived assets or asset groups to be used in operations whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, the Company would assess the recoverability of an asset group by determining if the carrying amount of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying amount of the asset group is not recoverable, the Company will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group’s carrying amount and its estimated fair value. Investment in marketable equity securities: Woodward holds marketable equity securities related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net.” The trading securities are included in “Other assets.” The associated obligation to provide benefits under the deferred compensation program is included in “Other liabilities.” Investments in unconsolidated subsidiaries: Investments in, and operating results of, entities in which Woodward does not have a controlling financial interest or the ability to exercise significant influence over the operations are included in the financial statements using the cost method of accounting. Investments and operating results of entities in which Woodward does not have a controlling interest but does have the ability to exercise significant influence over operations are included in the financial statements using the equity method of accounting. Deferred compensation: The Company maintains a deferred compensation plan, or “rabbi trust,” as part of its overall compensation package for certain employees. Deferred compensation obligations will be settled either by delivery of a fixed number of shares of Woodward’s common stock (in accordance with certain eligible members’ irrevocable elections) or in cash. Woodward has contributed shares of its common stock into a trust established for the future settlement of deferred compensation oblig |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Sep. 30, 2022 | |
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”). Recently adopted or anticipated impacts of significant future ASU’s are described below, as applicable. 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. 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 has assessed the accounting and financial impact of ASU 2020-04, and concluded no financial assets or liabilities, including those involved in hedging relationships, will be materially impacted as a result of the cessation of LIBOR. Accordingly, Woodward will not elect to apply the amendments in ASU 2020-04 for contract modifications. 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. Woodward elected to early adopt the new guidance effective January 1, 2021, which did not have a material effect on the Consolidated Financial Statements. 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 Consolidated Financial Statements. 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 | 12 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 3. Revenue Sales of Products Woodward primarily generates revenue through the manufacture and sale of engineered aerospace and industrial products, including revenue derived from MRO performance obligations performed on products originally manufactured by Woodward and subsequently returned by OEM or other end-user customers. The majority of Woodward’s costs incurred to satisfy MRO performance obligations are related to replacing and/or refurbishing component parts of the returned products to restore the units back to a condition generally comparable to that of the unit upon its initial sale to an OEM customer. Therefore, Woodward considers almost all of its revenue to be derived from product sales, including those related to MRO. Year Ended September 30, 2022 2021 2020 Manufactured products 84 % 86 % 86 % MRO 14 % 13 % 12 % Services 2 % 1 % 2 % Point in time and over time revenue recognition The amount of revenue recognized as point in time or over time follows: For the Year Ended September 30, 2022 2021 2020 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Aerospace Industrial Consolidated Point in time $ 593,233 $ 509,737 $ 1,102,970 $ 481,422 $ 527,233 $ 1,008,655 $ 590,817 $ 592,157 $ 1,182,974 Over time 926,089 353,731 1,279,820 922,695 314,482 1,237,177 1,000,146 312,545 1,312,691 Total net sales $ 1,519,322 $ 863,468 $ 2,382,790 $ 1,404,117 $ 841,715 $ 2,245,832 $ 1,590,963 $ 904,702 $ 2,495,665 Material Rights and Costs to Fulfill a Contract Amounts recognized related to changes in estimated total lifetime sales for material rights and costs to fulfill contracts with customers follows: Year Ended September 30, 2022 2021 2020 Revenue $ 1,514 $ 2,671 $ 6,784 Cost of goods sold 667 1,961 6,638 Amounts recognized related to amortization of costs to fulfill contracts and contract liabilities, which were not related to changes in estimate, follows: Year Ended September 30, 2022 2021 2020 Revenue $ 4,107 $ 4,455 $ 1,664 Cost of goods sold 3,077 3,466 1,241 As of September 30, 2022, “Other assets” on the Consolidated Balance Sheets included $167,610 of capitalized costs to fulfill contracts with customers, compared to $152,885 as of September 30, 2021. Accounts Receivable and Contract assets Customer receivables include amounts billed and currently due from customers as well as unbilled amounts (contract assets) and are included in “Accounts receivable” in Woodward’s Consolidated Balance Sheets. Amounts are billed in accordance with contractual terms, which are generally tied to shipment of the products to the customer, or as work progresses in accordance with contractual terms. Billed accounts receivable are typically due within 60 days. Woodward’s contracts with customers generally have no financing components. Accounts receivable consisted of the following: September 30, 2022 September 30, 2021 Billed receivables Trade accounts receivable $ 359,364 $ 298,951 Other (Chinese financial institutions) 9,405 23,168 Total billed receivables 368,769 322,119 Current unbilled receivables (contract assets) 245,117 204,596 Total accounts receivable 613,886 526,715 Less: Allowance for uncollectible amounts (3,922 ) (3,664 ) Total accounts receivable, net $ 609,964 $ 523,051 As of September 30, 2022, “Other assets” on the Consolidated Balance Sheets includes $6,649 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $9,424 as of September 30, 2021. 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 global supply chain and labor disruptions. Billed and unbilled accounts receivable from the U.S. Government were less than 10% The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following: Year Ended September 30, 2022 2021 2020 Balance, beginning $ 3,664 $ 8,359 $ 8,936 Charged to costs and expenses, or sales allowance 1,866 2,382 4,735 Deductions (1,587 ) (7,255 ) (5,342 ) Other (deductions)/additions 1 (21 ) 178 30 Balance, ending $ 3,922 $ 3,664 $ 8,359 (1) Includes effects of foreign exchange rate changes during the period. Woodward adopted ASU 2016-13 on October 1, 2021. The change in the allowance for uncollectible amounts during the fiscal year ended September 30, 2020, is based on incurred losses rather than expected credit losses per the CECL impairment model. Contract liabilities Contract liabilities consisted of the following: September 30, 2022 September 30, 2021 Current Noncurrent Current Noncurrent Deferred revenue from material rights from GE joint venture formation $ 5,754 $ 234,516 $ 4,771 $ 234,237 Deferred revenue from advanced invoicing and/or prepayments from customers 4,120 38 4,192 290 Liability related to customer supplied inventory 12,442 — 14,169 — Deferred revenue from material rights related to engineering and development funding 8,347 161,791 6,395 151,797 Net contract liabilities $ 30,663 $ 396,345 $ 29,527 $ 386,324 The current portion of contract liabilities is included in “Accrued liabilities” and the noncurrent portion is included in “Other liabilities” of Woodward’s Consolidated Balance Sheets. Woodward recognized revenue of $22,313 in the year ended September 30, 2022 from contract liabilities balances recorded as of September 30, 2021, compared to $19,925 in the year ended September 30, 2021 from contract liabilities balances recorded as of September 30, 2020. Woodward recognized revenue of $65,702 for the fiscal year ended September 30, 2022, compared to $71,517 for the fiscal year ended September 30, 2021 and $79,569 for the fiscal year ended September 30, 2020, related to noncash consideration received from customers. The Aerospace segment recognized $63,358 for the fiscal year ended September 30, 2022, compared to $69,195 for the fiscal year ended September 30, 2021 and $78,179 for the fiscal year ended September 30, 2020, while the Industrial segment recognized $2,343 for the fiscal year ended September 30, 2022 compared to $2,322 for the fiscal year ended September 30, 2021 and $1,390 for the fiscal year ended September 30, 2020. Remaining performance obligations Remaining performance obligations related to the aggregate amount of the total contract transaction price of firm orders for which the performance obligation has not yet been recognized in revenue as of September 30, 2022 was $1,558,588, compared to $1,283,311 as of September 30, 2021, the majority of which in both periods relate to Woodward’s Aerospace segment. Woodward expects to recognize almost all of these remaining performance obligations within two years after September 30, 2022. Remaining performance obligations related to material rights that have not yet been recognized in revenue as of September 30, 2022 was $448,370, of which $12,718 is expected to be recognized in fiscal year 2023, and the balance is expected to be recognized thereafter. Woodward expects to recognize revenue from performance obligations related to material rights over the life of the underlying programs, which may be as long as forty years. Disaggregation of Revenue Woodward designs, produces and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in markets throughout the world. Woodward reports financial results for each of its Aerospace and Industrial reportable segments. Woodward further disaggregates its revenue from contracts with customers by primary market and by geographical area as Woodward believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Revenue by primary market for the Aerospace reportable segment was as follows: Year Ended September 30, 2022 2021 2020 Commercial OEM $ 499,438 $ 386,543 $ 434,306 Commercial aftermarket 420,881 306,547 399,843 Defense OEM 422,016 509,815 526,264 Defense aftermarket 176,987 201,212 230,550 Total Aerospace segment net sales $ 1,519,322 $ 1,404,117 $ 1,590,963 Revenue by primary market for the Industrial reportable segment was as follows: Year Ended September 30, 2022 2021 2020 Reciprocating engines $ 636,866 $ 639,946 $ 632,555 Industrial turbines 226,602 201,769 222,366 Renewables 1 — — 49,781 Total Industrial segment net sales $ 863,468 $ 841,715 $ 904,702 (1) Sales in the renewables market were discontinued as of May 1, 2020 following the closing of the divestiture of the disposal group (see Note 10, Acquisitions and Divestitures ). The customers who account for approximately 10% or more of net sales of each of Woodward’s reportable segments are as follows: For the Year Ended September 30, 2022 2021 Aerospace Raytheon Technologies, The Boeing Company, GE The Boeing Company, Raytheon Technologies, GE Industrial Rolls-Royce PLC, Wärtsilä, Caterpillar Rolls-Royce PLC, Weichai Westport, GE Net sales by geographic area, as determined based on the location of the customer, were as follows: Year Ended September 30, 2022 2021 2020 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Aerospace Industrial Consolidated United States $ 1,105,860 $ 205,740 $ 1,311,600 $ 1,103,373 $ 174,750 $ 1,278,123 $ 1,231,004 $ 195,450 $ 1,426,454 Germany 57,840 174,216 232,056 31,005 152,691 183,696 52,635 181,330 233,965 Europe, excluding Germany 128,719 234,795 363,514 95,984 195,957 291,941 122,938 214,033 336,971 China 49,407 86,972 136,379 35,286 178,983 214,269 38,359 171,526 209,885 Asia, excluding China 23,334 128,855 152,189 23,363 114,137 137,500 27,068 113,001 140,069 Other countries 154,162 32,890 187,052 115,106 25,197 140,303 118,959 29,362 148,321 Total net sales $ 1,519,322 $ 863,468 $ 2,382,790 $ 1,404,117 $ 841,715 $ 2,245,832 $ 1,590,963 $ 904,702 $ 2,495,665 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2022 | |
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: Year Ended September 30, 2022 2021 2020 Numerator: Net earnings $ 171,698 $ 208,649 $ 240,395 Denominator: Basic shares outstanding 61,517 63,287 62,267 Dilutive effect of stock options and restricted stock units 1,737 2,268 1,942 Diluted shares outstanding 63,254 65,555 64,209 Income per common share: Basic earnings per share $ 2.79 $ 3.30 $ 3.86 Diluted earnings per share $ 2.71 $ 3.18 $ 3.74 The following stock option grants were outstanding during the fiscal years ended September 30, 2022, 2021 and 2020, but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive. Year Ended September 30, 2022 2021 2020 Options 1,019 41 660 Weighted-average option price $ 110.71 $ 116.38 $ 104.45 The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following: Year Ended September 30, 2022 2021 2020 Weighted-average treasury stock shares held for deferred compensation obligations 151 186 211 |
Leases
Leases | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 5. Leases Woodward is primarily a lessee in lease arrangements but has some embedded lessor arrangements. Lessee arrangements Woodward has entered into operating leases for certain facilities and equipment with terms in excess of one year under agreements that expire at various dates. Some leases require the payment of property taxes, insurance, maintenance costs, or other similar costs in addition to rental payments. Woodward has also entered into finance leases for equipment with terms in excess of one year under agreements that expire at various dates. None of Woodward’s lease agreements contain significant residual value guarantees, restrictions, or covenants. As of September 30, 2022, Woodward has not entered into any lease arrangements that have not yet commenced but would create significant rights and obligations. Woodward does not have any lease transactions between related parties. Lease-related assets and liabilities follows: Classification on the Consolidated Balance Sheets September 30, 2022 September 30, 2021 Assets: Operating lease assets Other assets $ 25,144 $ 19,370 Finance lease assets Property, plant and equipment, net 5,474 781 Total lease assets 30,618 20,151 Current liabilities: Operating lease liabilities Accrued liabilities 4,587 5,260 Finance lease liabilities Current portion of long-term debt 856 728 Noncurrent liabilities: Operating lease liabilities Other liabilities 21,443 14,770 Finance lease liabilities Long-term debt, less current portion 4,405 475 Total lease liabilities $ 31,291 $ 21,233 In the first quarter of fiscal year 2020, 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, Acquisitions and Divestitures Supplemental lease-related information follows: September 30, 2022 September 30, 2021 Weighted average remaining lease term Operating leases 8.3 years 4.3 years Finance leases 9.7 years 1.7 years Weighted average discount rate Operating leases 3.6 % 3.2 % Finance leases 3.4 % 2.8 % Lease-related expenses were as follows: Year Ended September 30, 2022 2021 2020 Operating lease expense $ 6,335 $ 6,559 $ 6,164 Amortization of financing lease assets 454 425 476 Interest on financing lease liabilities 51 58 87 Variable lease expense 929 1,495 1,101 Short-term lease expense 190 283 466 Sublease income 1 (192 ) (680 ) (697 ) Total lease expense $ 7,767 $ 8,140 $ 7,597 (1) Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois. During fiscal year 2022, these subleases were terminated. Lease-related supplemental cash flow information was as follows: Year Ended September 30, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 5,303 $ 5,707 $ 5,622 Operating cash flows for finance leases 51 58 87 Financing cash flows for finance leases 796 1,639 1,590 Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases 14,678 6,871 6,501 Finance leases 4,046 35 1,244 Maturities of lease liabilities were as follows: Year Ending September 30: Operating Leases Finance Leases 2023 $ 5,383 $ 1,032 2024 4,695 1,002 2025 3,768 870 2026 3,156 870 2027 2,592 868 Thereafter 10,959 1,919 Total lease payments 30,553 6,561 Less: imputed interest (4,523 ) (1,300 ) Total lease obligations $ 26,030 $ 5,261 Lessor arrangements Woodward has assessed its manufacturing contracts and concluded that certain of the contracts for the manufacture Although Woodward expects to allocate some portion of future net sales to these customers to embedded lessor arrangements, it cannot provide expected future undiscounted lease payments from property, plant and equipment leased to customers as of September 30, 2022. If, in the future, customers reduce purchases of related products from Woodward, the Company believes it will derive additional value from the underlying equipment by repurposing its use to support other customer arrangements. Woodward recognizes revenue from the embedded lessor arrangements based on the value of the underlying dedicated property, plant, and equipment. There are no fixed payments that the customers under the embedded lessor arrangements are obligated to pay. Therefore, all the customer payments under the embedded lessor arrangements are considered variable with the associated leasing revenue recognized when the revenue from underlying product sale related to variable lease payment is recognized . The carrying amount of property, plant and equipment September 30, 2022 September 30, 2021 Property, plant and equipment leased to others through embedded leasing arrangements $ 44,912 $ 93,732 Less accumulated depreciation (25,508 ) (35,733 ) Property, plant and equipment leased to others through embedded leasing arrangements, net $ 19,404 $ 57,999 |
Joint Venture
Joint Venture | 12 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Joint Venture | Note 6. Joint venture In fiscal year 2016, Woodward and 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: September 30, 2022 September 30, 2021 Accrued liabilities $ 5,754 $ 4,771 Other liabilities 234,516 234,237 Amortization of the deferred revenue (material right) recognized as an increase to sales was $3,633 for the fiscal year ended September 30, 2022, $4,191 for the fiscal year ended September 30, 2021, and $5,493 for the fiscal year ended September 30, 2020. Woodward and GE jointly manage the JV and any significant decisions and/or actions of the JV require the mutual consent of both parties. Neither Woodward nor GE has a controlling financial interest in the JV, but both Woodward and GE do have the ability to significantly influence the operating and financial decisions of the JV. Therefore, Woodward is accounting for its 50% ownership interest in the JV using the equity method of accounting. The JV is a related party to Woodward. In addition, GE will continue to pay contingent consideration to Woodward consisting of fifteen annual payments of $4,894 each, which began on January 4, 2017, subject to certain claw-back conditions. Woodward received its fifth and six annual payments of $4,894 during the three-months ended March 31, 2021 and March 31, 2022, respectively, which were recorded as deferred income and included in Net cash provided by operating activities on the Consolidated Statements of Cash Flows. Neither Woodward nor GE contributed any tangible assets to the JV. Other income related to Woodward’s equity interest in the earnings of the JV was as follows: For the Year Ended September 30, 2022 2021 2020 Other income $ 18,193 $ 11,366 $ 15,580 Cash distributions to Woodward from the JV, recognized in Net cash provided by operating activities on the Consolidated Statements of Cash Flows, from the JV include: Year Ended September 30, 2022 2021 2020 Cash distributions $ 17,000 $ 13,500 $ 14,000 Net sales to the JV were as follows: For the Year Ended September 30, 2022 2021 2020 Net sales 1 $ 28,100 $ 35,957 $ 48,222 (1) Net sales include a reduction of $28,054 for the fiscal year ended September 30, 2022, $21,101 for the fiscal year ended September 30, 2021, and $23,904 for the fiscal year ended September 30, 2020 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers The Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows: September 30, 2022 September 30, 2021 Accounts receivable $ 4,172 $ 3,639 Accounts payable 4,069 2,823 Other assets 8,181 6,988 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 September 30, 2022 of $79,257 compared to $73,657 as of fiscal year ended September 30, 2021. Woodward’s costs to fulfill a contract included in “Other assets” related to JV activities were $79,257 as of September 30, 2022 and $73,657 as of fiscal year ended September 30, 2021. In the fiscal year ended September 30, 2022, Woodward recognized a $1,146 reduction in the contract liability in “Other liabilities” and a $1,146 reduction in costs to fulfill a contract in “Other assets” related to the recognition of revenue and cost of goods sold that was included in the contract liability and contract asset, respectively, at the beginning of the fiscal year. In the fiscal year ended September 30, 2021, Woodward recognized a $2,072 reduction in the contract liability in “Other liabilities” and a $2,072 reduction in costs to fulfill a contract in “Other assets” related to the termination of a JV engineering and development project previously recognized as a material right. No reductions in costs to fulfill a contract or contract liabilities were recorded during the fiscal years ended September 30, 2022 and September 30, 2021 as a result of the termination of joint venture engineering and development projects. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Note 7. Financial instruments and fair value measurements The table below presents information about Woodward’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value. At September 30, 2022 At September 30, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Investments in term deposits with foreign banks $ 37,605 — — $ 37,605 $ 13,187 — — $ 13,187 Equity securities 22,800 — — 22,800 29,714 — — 29,714 Cross currency interest rate swaps — 38,168 — 38,168 — — — — Total financial assets $ 60,405 $ 38,168 $ — $ 98,573 $ 42,901 $ — $ — $ 42,901 Financial liabilities: Cross currency interest rate swaps $ — $ — $ — $ — $ — $ 50,185 $ — $ 50,185 Total financial liabilities $ — $ — $ — $ — $ — $ 50,185 $ — $ 50,185 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 Consolidated Statements of Earnings. The trading securities are included in “Other assets” in the Consolidated Balance Sheets. The fair values of Woodward’s trading securities are based on the quoted market prices for the net asset value of the various mutual funds. Cross-currency interest rate swaps: Woodward holds cross currency interest rate swaps, which are accounted for at fair value. The swaps in an asset position are included in “Other current assets” and “Other assets,” and swaps in a liability position are included in “Accrued liabilities” and “Other liabilities” in the Consolidated Balance Sheets. The fair values of Woodward’s cross currency interest rate swaps are determined using a market approach that is based on observable inputs other than quoted market prices, including contract terms, interest rates, currency rates, and other market factors. Cash, trade accounts receivable, accounts payable, and short-term borrowings are not remeasured to fair value, as the carrying cost of each approximates its respective fair value. The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Consolidated Balance Sheets were as follows : At September 30, 2022 At September 30, 2021 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 $ 9,010 $ 8,992 $ 11,413 $ 10,193 Note receivable from sale of disposal group 2 — — 6,288 6,061 Investments in short-term time deposits 2 8,026 7,893 11,587 11,580 Liabilities: Long-term debt 2 $ 646,696 $ 712,054 $ 812,866 $ 736,706 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 the Company at the end of the period for similarly rated municipal notes of similar maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the long-term notes were 3.5% at September 30, 2022 and 1.3% at September 30, 2021. In connection with the sale of the disposal group (See Note 10, Acquisitions and Divestitures From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. The fair value of the investments in short-term time deposits was estimated based on a model that discounted future principal and interest payments to be received at an interest rate available to the foreign subsidiary entering into the investment for similar short-term time deposits of similar maturity. This was determined to be a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the short-term time deposits was 6.1% at September 30, 2022 and 3.3% at September 30, 2021. The fair value of long-term debt was estimated based on a model that discounted future principal and interest payments at interest rates available to the Company at the end of the period for similar debt of the same maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The weighted-average interest rates used to estimate the fair value of long-term debt were 5.6% at September 30, 2022 and 1.6% at September 30, 2021. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Sep. 30, 2022 | |
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 15, Credit facilities short-term borrowings and long-term debt Credit facilities short-term borrowings and long-term debt In May 2020, as a result of the COVID-19 pandemic and uncertainties in future cash flows, Woodward terminated the Floating-Rate Cross-Currency Swap and Fixed-Rate Cross-Currency Swaps. At the date of settlement, the total notional value of the Floating-Rate Cross-Currency Swap and Fixed-Rate Cross-Currency Swaps was $108,823 and $400,000, respectively. Woodward received net cash proceeds of $59,571, which includes $58,191 related to the fair value of the derivative assets and $ 4,380 of net accrued interest, less payment of $ 3,000 for fees to terminate the swap agreements . The proceeds received for the fair value of the instruments is recorded in “Other”, while net accrued interest is recorded in “Other” and “Accrued liabilities”, respectively, in cash flows provided by operating activities of Woodward’s Consolidated Statements of Cash Flows . The fees to terminate the swap agreements were expensed as incurred and presented in the line item “Selling, general and administrative” expenses in Woodward’s Consolidated Statements of Earnings. Upon termination and settlement of the instruments, Woodward 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 reduce the interest rates on the underlying fixed and floating-rate debt under the 2018 Notes and Woodward’s existing revolving credit agreement, respectively. The net interest income of the cross-currency interest rate swaps is recorded as a reduction to “Interest expense” in Woodward’s Consolidated Statements of Earnings. As of September 30, 2022, the total notional value of the 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps was $11,250 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 in May 2018, 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 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 and resulted in a reclassification of $1,719 of previously unrecognized losses from accumulated OCI into earnings. The loss on discontinuation of the fair value hedging relationship is recognized in “Gain on cross-currency interest rate swaps, net” in Woodward’s Consolidated Statements of Earnings. 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 OCI. The remaining change in the fair value of the derivative instrument is recognized in foreign currency transaction gain or loss included in “Selling, general and administrative costs” in Woodward’s Consolidated Statements of Earnings. The change in the fair value of the derivative instrument in foreign currency transaction gain or loss offsets the change in the spot remeasurement of the intercompany Euro and US dollar denominated loans. Hedge effectiveness is assessed based on the fair value changes of the derivative instrument, after excluding any fair value changes related to the cross-currency basis spread. The initial cost of the cross-currency basis spread is recorded in earnings each period through the swap accrual process. There are no credit-risk-related contingent features associated with the intercompany floating-rate cross-currency interest rate swap. Derivative instruments in cash flow hedging relationships In conjunction with the entry into the Fixed-Rate Cross Currency Swaps in May 2018, 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 and resulted in a reclassification of $32,200 of previously unrecognized gains from accumulated OCI into earnings. The gain on discontinuation of the cash flow hedging relationships is recognized in “Gain on cross-currency interest rate swaps, net” in Woodward’s Consolidated Statements of Earnings. 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 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 gains of $7,206 for the fiscal year ended September 30, 2022 September 30, 2021 Impact of derivative instruments designated as qualifying hedging instruments The following table discloses the amount of (income) expense recognized in earnings on derivative instruments designated as qualifying hedging instruments: Year Ended September 30, Derivatives in: Location 2022 2021 2020 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ (2,844 ) $ 23 $ 4,592 Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses (66,036 ) (3,725 ) (3,190 ) Treasury lock agreement designated as cash flow hedge Interest expense — — (72 ) $ (68,880 ) $ (3,702 ) $ 1,330 The following table discloses the amount of (gain) loss recognized in accumulated OCI on derivative instruments designated as qualifying hedging instruments: Year Ended September 30, Derivatives in: Location 2022 2021 2020 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ (2,854 ) $ 60 $ 4,832 Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses (86,194 ) 1,612 13,430 $ (89,048 ) $ 1,672 $ 18,262 The following table discloses the amount of (gain) loss reclassified in accumulated OCI on derivative instruments designated as qualifying hedging instruments: Year Ended September 30, Derivatives in: Location 2022 2021 2020 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ (2,844 ) $ 23 $ 5,396 Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses (66,036 ) (3,725 ) (3,190 ) Treasury lock agreement designated as cash flow hedge Interest expense — — (72 ) $ (68,880 ) $ (3,702 ) $ 2,134 The remaining unrecognized gains and losses in Woodward’s Consolidated Balance Sheets associated with derivative instruments that were previously entered into by Woodward, which are classified in accumulated OCI were net losses of $6,338 as of September 30, 2022 September 30, 2021 |
Supplemental Statement of Cash
Supplemental Statement of Cash Flows Information | 12 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Statement of Cash Flows Information | Note 9. Supplemental statement of cash flows information Year Ended September 30, 2022 2021 2020 Interest paid, net of amounts capitalized $ 27,435 $ 27,574 $ 27,148 Income taxes paid 29,560 38,949 94,088 Income tax refunds received 7,481 14,044 17,653 Non-cash activities: Purchases of property, plant and equipment on account 6,452 7,771 3,076 Impact of the adoption of ASC 842 — — 255 Common shares issued from treasury to settle benefit obligations 17,132 14,900 14,748 Purchases of treasury stock on account — 12,516 — |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Sep. 30, 2022 | |
Acquisitions And Divestitures [Abstract] | |
Acquisitions and Divestitures | Note 10. Acquisitions and Divestitures Acquisitions On August 2, 2022, we entered into a series of Purchase Agreements with one of our Asia pacific channel partners, PM Control PLC (the “PM Agreements”). Pursuant to the PM Agreements, we agreed to acquire business assets and shares of stock of PM Control PLC and its affiliates (collectively, “PM Control”), for a total consideration (excluding cash acquired from the acquisition and including the settlement of pre-existing relationships) of $22,299 (the “PM Acquisition”). The PM Acquisition closed on August 31, 2022 (the “PM Closing”) and PM Control PLC became a wholly owned subsidiary of the Company. ASC Topic 805, “Business Combinations” (“ASC 805”), provides a framework to account for acquisition transactions under U.S. GAAP. The purchase price of PM Control, prepared consistent with the required ASC 805 framework, is allocated as follows: Cash paid to Sellers $ 22,890 Less acquired cash and restricted cash (1,341 ) Plus settlement of pre-existing relationships 750 Total purchase price $ 22,299 The allocation of the purchase price to the assets acquired and liabilities assumed was recorded as of the end of business on August 31, 2022 using the purchase method of accounting in accordance with ASC 805. Assets acquired and liabilities assumed in the transaction were recorded at their acquisition date fair values, while transaction costs associated with the acquisition were expensed as incurred. Woodward’s allocation was based on an evaluation of the appropriate fair values and represents management’s best estimate. The following table summarizes, as of August 31, 2022, the estimated fair values of the assets acquired and liabilities assumed at the PM Closing. Accounts receivable $ 4,334 Inventories 2,464 Other current assets 386 Property, plant, and equipment 2,488 Goodwill 8,526 Intangible assets 9,916 Total assets acquired 28,114 Other current liabilities (2,688 ) Deferred income tax liabilities (1,842 ) Other noncurrent liabilities (1,285 ) Total liabilities assumed (5,815 ) Net assets acquired $ 22,299 The preliminary purchase price allocation resulted in the recognition of $8,526 of goodwill, which is expected to be non-deductible for tax purposes. The Company has included all the goodwill in its Industrial segment. The goodwill represents the estimated value of potential expansion with new customers, the opportunity to further develop sales opportunities with new customers, other synergies expected to be achieved through the integration of PM Control with Woodward’s Industrial segment. A summary of the intangible assets acquired, weighted-average useful lives, and amortization methods follows: Estimated Amounts Weighted- Average Useful Life Amortization Method Intangible assets with finite lives: Customer relationships and contracts $ 8,332 11 years Straight-line Trade name 1,584 5 years Straight-line Total $ 9,916 Future amortization expense associated with the acquired intangibles as of September 30, 2022, is expected to be $1,074 for the next five years ended. Due to the timing of the acquisition, we are still finalizing valuations of intangible assets and related tax impacts. The final determination of the fair value of assets and liabilities will be completed within the one-year measurement period as permitted by ASC 805. We have not presented pro forma results because the PM Acquisition was not deemed significant at the date of PM Closing. Divestitures In the first quarter of 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 the fiscal year ended September 30, 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 Consolidated Balance Sheets as of June 30, 2020. 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. In determining the amount by which the carrying value of the disposal group’s remaining net assets exceeded their fair value, Woodward considered primarily the market value of the assets held for sale based on negotiations it had entered into with affiliates of the AURELIUS Group for the sale of the majority of the disposal group. On January 31, 2020, Woodward entered into a definitive agreement to sell the majority of the disposal group to affiliates of the AURELIUS Group for $23,400, subject to customary purchase price adjustments, consisting of cash and a $6,000 promissory note, which was due by April 30, 2022. The assets were primarily located in Germany, Poland and Bulgaria and accounted for approximately $88,000 of sales in fiscal year 2019. The valuation reserve recorded to reduce the carrying value of the net assets held for sale was based on the estimated selling price pursuant to the definitive agreement reduced by the estimated working capital adjustments, transaction costs, and anticipated losses on assets held for sale that were not included in the disposal group to be sold to the AURELIUS Group. The transactions consummating the sale of the disposal group were completed on April 30, 2020. The carrying value of the assets and liabilities sold were as follows: June 30, 2020 Assets: Accounts receivable $ 17,637 Inventories 441 Other current assets 796 Other assets 51 Total assets 18,925 Liabilities: Accounts payable 7,633 Accrued liabilities 2,998 Other liabilities 450 Total liabilities $ 11,081 |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2022 | |
Inventory Net [Abstract] | |
Inventories | Note 11. Inventories September 30, 2022 September 30, 2021 Raw materials $ 126,264 $ 107,412 Work in progress 123,005 95,846 Component parts (1) 329,962 260,244 Finished goods 70,019 63,109 Customer supplied inventory 12,442 14,169 On-hand inventory for which control has transferred to the customer (147,405 ) (120,809 ) $ 514,287 $ 419,971 (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 | 12 Months Ended |
Sep. 30, 2022 | |
Property Plant And Equipment Net [Abstract] | |
Property, Plant and Equipment | Note 12. Property, plant, and equipment September 30, 2022 September 30, 2021 Land and land improvements $ 84,057 $ 86,051 Buildings and building improvements 555,387 553,693 Leasehold improvements 19,392 19,159 Machinery and production equipment 779,514 795,128 Computer equipment and software 122,670 124,444 Office furniture and equipment 39,749 39,987 Other 20,162 20,012 Construction in progress 58,789 38,317 1,679,720 1,676,791 Less accumulated depreciation (769,248 ) (726,222 ) Property, plant, and equipment, net $ 910,472 $ 950,569 In the second quarter of fiscal year 2018, the Company announced its decision to relocate its Duarte, California operations to the Company’s newly renovated Drake Campus in Fort Collins, Colorado, and in fiscal year 2019, finalized the relocation. On December 30, 2019, the Company closed on the sale of one of two parcels of real property at the Duarte facility and recorded a pre-tax gain on sale of assets of $13,522. On August 11, 2020, the Company closed on the sale of the final parcel of real property at the Duarte facility and recorded a pre-tax gain on sale of assets of $8,801. In the first quarter of fiscal year 2020, Woodward determined that the approved plan to divest of the disposal group (see Note 10, Acquisitions and Divestitures On September 25, 2020, the Company closed on the sale of its Loveland, Colorado campus with a concurrent purchase of a new property in Windsor, Colorado for future operations, resulting in recognition of a pre-tax gain on sale of assets of $2,330. For the fiscal years ended September 30, 2022 Year Ended September 30, 2022 2021 2020 Depreciation expense $ 83,019 $ 87,631 $ 91,700 |
Goodwill
Goodwill | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 13. Goodwill September 30, 2021 Additions Effects of Foreign Currency Translation September 30, 2022 Aerospace $ 455,423 $ — $ — $ 455,423 Industrial 349,910 8,526 (41,300 ) 317,136 Consolidated $ 805,333 $ 8,526 $ (41,300 ) $ 772,559 September 30, 2020 Additions Effects of Foreign Currency Translation September 30, 2021 Aerospace $ 455,423 $ — $ — $ 455,423 Industrial 352,829 — (2,919 ) 349,910 Consolidated $ 808,252 $ — $ (2,919 ) $ 805,333 On August 31, 2022, Woodward completed the acquisition of PM Control (see Note 10, Acquisitions and Divestitures During the first quarter of fiscal year 2020 , 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 the fiscal year ended September 30, 2020 . Woodward tests goodwill for impairment at the reporting unit level on an annual basis or at any time there is an indication goodwill may be impaired, commonly referred to as triggering events. Woodward completed its annual goodwill impairment test as of July 31, 2022 during the quarter ended September 30, 2022 Forecasted cash flows used in the July 31, 2022 impairment test were discounted using weighted-average cost of capital assumptions ranging from 8.93% to 17.43%. The terminal values of the forecasted cash flows were calculated using the Gordon Growth Model and assumed an annual compound growth rate after five years of 3.95%. These inputs, which are unobservable in the market, represent management’s best estimate of what market participants would use in determining the present value of the Company’s forecasted cash flows. Changes in these estimates and assumptions can have a significant impact on the fair value of forecasted cash flows. Woodward evaluated the reasonableness of the reporting units’ resulting fair values utilizing a market multiple method. The results of Woodward’s goodwill impairment test performed as of July 31, 2022 did not indicate impairment of any of Woodward’s reporting units. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Sep. 30, 2022 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible Assets, Net | Note 14. Intangible assets, net September 30, 2022 September 30, 2021 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 $ (223,565 ) $ 58,118 $ 281,683 $ (210,380 ) $ 71,303 Industrial 352,917 (66,812 ) 286,105 404,179 (56,515 ) 347,664 Total $ 634,600 $ (290,377 ) $ 344,223 $ 685,862 $ (266,895 ) $ 418,967 Intellectual property: Aerospace $ — $ — $ — $ — $ — $ — Industrial 12,361 (12,361 ) — 15,806 (15,806 ) — Total $ 12,361 $ (12,361 ) $ — $ 15,806 $ (15,806 ) $ — Process technology: Aerospace $ 76,370 $ (69,471 ) $ 6,899 $ 76,370 $ (67,177 ) $ 9,193 Industrial 78,524 (27,464 ) 51,060 90,008 (26,124 ) 63,884 Total $ 154,894 $ (96,935 ) $ 57,959 $ 166,378 $ (93,301 ) $ 73,077 Other intangibles: Aerospace $ — $ — $ — $ — $ — $ — Industrial 1,560 — 1,560 — — — Total $ 1,560 $ — $ 1,560 $ — $ — $ — Intangible asset with indefinite life: Trade name: Aerospace $ — $ — $ — $ — $ — $ — Industrial 56,838 — 56,838 67,245 — 67,245 Total $ 56,838 $ — $ 56,838 $ 67,245 $ — $ 67,245 Total intangibles: Aerospace $ 358,053 $ (293,036 ) $ 65,017 $ 358,053 $ (277,557 ) $ 80,496 Industrial 502,200 (106,637 ) 395,563 577,238 (98,445 ) 478,793 Consolidated Total $ 860,253 $ (399,673 ) $ 460,580 $ 935,291 $ (376,002 ) $ 559,289 Indefinite lived intangible assets The Woodward L’Orange trade name intangible asset is tested for impairment on an annual basis and more often if an event occurs or circumstances change that indicate the fair value of the Woodward L’Orange intangible asset may be below its carrying amount. The impairment test consists of comparing the fair value of the Woodward L’Orange trade name intangible asset, determined using discounted cash flows based on the relief from royalty method under the income approach, with its carrying amount. If the carrying amount of the Woodward L’Orange trade name intangible asset exceeds its fair value, an impairment loss would be recognized to reduce the carrying amount to its fair value. Woodward has not recognized any impairment charges for this asset. During the fourth quarter, Woodward completed its annual impairment test of the Woodward L’Orange trade name intangible asset as of July 31, 2022 for the fiscal year ended September 30, 2022. The fair value of the Woodward L’Orange trade name intangible assets was determined using discounted cash flows based on the relief from royalty method under the income approach. This method represents a Level 3 input (based upon a fair value hierarchy established by U.S. GAAP) and incorporates various estimates and assumptions, the most significant being projected revenue growth rates, royalty rates, future tax rates and the present value, based on an estimated weighted-average cost of capital (or the discount rate) and terminal growth rate, of the forecasted cash flow. Management projects revenue growth rates and cash flows based on Woodward L’Orange’s current operational results, expected performance and operational strategies over a five year period. These projections are adjusted to reflect current economic conditions and demand for certain products, and require considerable management judgment. The forecasted cash flow used in the July 31, 2022 impairment test was discounted using weighted-average cost of capital assumption of 9.70%. The terminal value of the forecasted cash flow was calculated using the Gordon Growth Model and assumed an annual compound growth rate after five years of 3.95%. These inputs, which are unobservable in the market, represent management’s best estimate of what market participants would use in determining the present value of the Company’s forecasted cash flows. Changes in these estimates and assumptions can have a significant impact on the fair value of the forecasted cash flow. The results of impairment test performed as of July 31, 2022 indicated the estimated fair value of the Woodward L’Orange trade name intangible asset was in excess of its carrying value, and accordingly, no impairment existed. Finite-lived intangible assets During the first quarter of fiscal year 2020, 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 for the fiscal year ended September 30, 2020. Woodward recorded amortization expense associated with intangibles of the following: Year Ended September 30, 2022 2021 2020 Amortization expense $ 37,609 $ 41,893 $ 39,458 Future amortization expense associated with intangibles is expected to be: Year Ending September 30: 2023 $ 35,885 2024 32,014 2025 26,852 2026 26,816 2027 26,750 Thereafter 255,425 $ 403,742 |
Credit Facilities, Short-term B
Credit Facilities, Short-term Borrowings and Long-term Debt | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Credit Facilities, Short-term Borrowings and Long-term Debt | Note 15. Credit facilities, short-term borrowings and long-term debt As of September 30, 2022 Total availability Outstanding letters of credit and guarantees Outstanding borrowings Remaining availability Revolving credit facility $ 1,000,000 $ (9,694 ) $ (66,800 ) $ 923,506 Foreign lines of credit and overdraft facilities 27,266 — — 27,266 Foreign performance guarantee facilities 418 (196 ) — 222 $ 1,027,684 $ (9,890 ) $ (66,800 ) $ 950,994 Revolving credit facility Woodward is a party to the Second Amended and Restated Revolving Credit Agreement (as defined below) with certain foreign subsidiaries party thereto from time to time as borrowers, a syndicate of lenders and Wells Fargo bank, National Association, as administrative agent. Pursuant to the Second Amended and Restated Revolving Credit Agreement, the lenders party thereto have agreed to extend revolving loans and letters of credit to Woodward and certain of its foreign subsidiaries in an aggregate amount not to exceed $1,000,000. The Second Amended and Restated Revolving Credit Agreement provides for the option to increase available borrowings up to $1,500,000, in the aggregate, subject to lenders’ participation. As of October 1, 2021, Woodward maintained a revolving credit agreement dated as of June 19, 2019 (the “2019 Revolving Credit Agreement”). On November 24, 2021, Woodward amended the 2019 Revolving Credit Agreement (such amended agreement, the “Amended and Restated Revolving Credit Agreement”) to, among other things, (i) replace the Euro London Interbank Offered Rate (“LIBOR”), the British pound sterling LIBOR, and the Japanese yen LIBOR rates with the Euro Interbank Offered Rate (“Euribor”), Sterling Overnight Index Average (“SONIA”), and Tokyo Interbank Offered Rate (“TIBOR”) rates, respectively, and (ii) replace the US LIBOR with the Secured Overnight Financing Rate (“SOFR”). The Amended and Restated Revolving Credit Agreement was set to mature on June 19, 2024. As of September 30, 2022, there were $66,800 in principal amount of borrowings outstanding, at an effective interest rate of 4.24% under the Amended and Restated Revolving Credit Agreement. As of September 30, 2022, all of borrowings outstanding were classified as short-term borrowings based on Woodward’s intent and ability to pay this amount in the next twelve months. As of September 30, 2021, there were no borrowings outstanding. On October 21, 2022, Woodward amended and restated the Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”). Effective as of October 21, 2022, the Second Amended and Restated Credit Agreement, extended the termination date of the revolving loan commitments of all the lenders from June 19, 2024 to October 21, 2027; removed the covenants restricting investments, acquisitions, dividends and distributions; and, subject to removal from the Company’s existing note purchase agreements or the termination or maturation of such note purchase agreements, removed the minimum consolidated net worth covenant. Borrowings under the Amended and Restated Revolving Credit Agreement could, and borrowings under the Second Amended and Restated Revolving Credit Agreement can, be made by Woodward and certain of its foreign subsidiaries in U.S. dollars or in foreign currencies other than the U.S. dollar and generally bear interest at the new base rates listed above plus 0.875% to 1.75%. The revolving credit agreements described in this Note 15 all contain (or contained, as applicable) certain covenants customary with such agreements, which are generally consistent with the covenants applicable to Woodward’s long-term debt agreements, and contains customary events of default, including certain cross default provisions related to Woodward’s other outstanding material debt arrangements, the occurrence of which would permit the lenders to accelerate the amounts due thereunder. In addition, the Revolving Credit Agreement includes the following financial covenants: (i) a maximum permitted leverage ratio of consolidated net debt to consolidated earnings before interest, taxes, depreciation, stock-based compensation, and amortization, plus any usual non-cash charges to the extent deducted in computing net income and transaction costs associated with permitted acquisitions (incurred within six-months of the permitted acquisition), minus any usual non-cash gains to the extent added in computing net income (“Leverage Ratio”) for Woodward and its consolidated subsidiaries of 3.5 to 1.0, which ratio, subject to certain restrictions, may increase to 4.0 to 1.0 for each period of four consecutive quarters during which a permitted acquisition occurs, and (ii) a minimum consolidated net worth of $1,156,000 plus (a) 50% of Woodward’s positive net income for the prior fiscal year and (b) 50% of Woodward’s net cash proceeds resulting from certain issuances of stock, subject to certain adjustments. The obligations of Woodward and from time-to-time certain of Woodward’s foreign subsidiaries, under the Second Amended and Restated Revolving Credit Agreement are guaranteed by Woodward MPC , Inc., Woodward HRT, Inc., or in case of obligations with any foreign subsidiaries of Woodward that are borrowers thereunder, Woodward L’Orange GmbH, each of which is a wholly owned subsidiary of Woodward. Short-term borrowings Woodward has other foreign lines of credit and foreign overdraft facilities at various financial institutions, which are generally reviewed annually for renewal and are subject to the usual terms and conditions applied by the financial institutions. Pursuant to the terms of the related facility agreements, Woodward’s foreign performance guarantee facilities are limited in use to providing performance guarantees to third parties. There were no borrowings outstanding on Woodward’s foreign lines of credit and foreign overdraft facilities as of both September 30, 2022 September 30, 2021 Long-term debt September 30, 2022 September 30, 2021 Series H notes – 4.03%, due November 15, 2023; unsecured $ 25,000 $ 25,000 Series I notes – 4.18%, due November 15, 2025; unsecured 25,000 25,000 Series K notes – 4.03%, due November 15, 2023; unsecured 50,000 50,000 Series L notes – 4.18%, due November 15, 2025; unsecured 50,000 50,000 Series M notes – 1.12% due September 23, 2026; unsecured 39,198 46,376 Series N notes – 1.31% due September 23, 2028; unsecured 75,457 89,273 Series O notes – 1.57% due September 23, 2031; unsecured 42,138 49,854 Series P notes – 4.27% due May 30, 2025; unsecured 85,000 85,000 Series Q notes – 4.35% due May 30, 2027; unsecured 85,000 85,000 Series R notes – 4.41% due May 30, 2029; unsecured 75,000 75,000 Series S notes – 4.46% due May 30, 2030; unsecured 75,000 75,000 Series T notes – 4.61% due May 30, 2033; unsecured 80,000 80,000 Finance leases (Note 5) 5,261 1,203 Unamortized debt issuance costs (1,438 ) (1,856 ) Total long-term debt 710,616 734,850 Less: Current portion of long-term debt 856 728 Long-term debt, less current portion $ 709,760 $ 734,122 The Notes On September 23, 2016, Woodward and the BV Subsidiary each entered into note purchase agreements (the “2016 Note Purchase Agreements”) relating to the sale by Woodward and the BV Subsidiary of an aggregate principal amount of €160,000 of senior unsecured notes in a series of private placement transactions. Woodward issued €40,000 Series M Notes. The BV Subsidiary issued (a) €77,000 aggregate principal amount of the BV Subsidiary’s Series N Senior Notes (the “Series N Notes”) and (b) €43,000 aggregate principal amount of the BV Subsidiary’s Series O Senior Notes (the “Series O Notes” and together with the Series M Notes and the Series N Notes, the “2016 Notes”). On May 31, 2018, Woodward entered into a note purchase agreement (the “2018 Note Purchase Agreement”) relating to the sale by Woodward of an aggregate principal amount of $400,000 of senior unsecured notes comprised of (a) $85,000 aggregate principal amount of its Series P Senior Notes (the “Series P Notes”), (b) $85,000 aggregate principal amount of its Series Q Senior Notes (the “Series Q Notes”), (c) $75,000 aggregate principal amount of its Series R Senior Notes (the “Series R Notes”), (d) $75,000 aggregate principal amount of its Series S Senior Notes (the “Series S Notes”), and (e) $80,000 aggregate principal amount of its Series T Senior Notes (the “Series T Notes”, and together with the Series P Notes, the Series Q Notes, the Series R Notes, and the Series S Notes, the “2018 Notes,” and, together with the USD Notes and 2016 Notes, the “Notes”), in a series of private placement transactions. In connection with the issuance of the 2018 Notes, the Company entered into cross currency swap transactions in respect of each tranche of the 2018 Notes, which effectively reduced the interest rates on the Series P Notes to 1.82% per annum, the Series Q Notes to 2.15% per annum, the Series R Notes to 2.42% per annum, the Series S Notes to 2.55% per annum and the Series T Notes to 2.90% per annum. Following the termination and settlement of the Floating-Rate Cross-Currency Swap and Fixed-Rate Cross-Currency Swaps entered into in 2018, the Company entered into the 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps, which effectively resulted in the interest rates on the Series P Notes being 3.44% per annum, the Series Q Notes to 3.44% per annum, the Series R Notes to 3.45% per annum, the Series S Notes to 3.50 % per annum and the Series T Notes to 3.62 % per annum (see Note 8, Derivative instruments and hedging activities) . Interest on the remaining First Closing Notes, and the Series K and L Notes is payable semi-annually on April 1 and October 1 of each year until all principal is paid. Interest on the 2016 Notes is payable semi-annually on March 23 and September 23 of each year, until all principal is paid. None of the Notes were registered under the Securities Act of 1933 and they may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Holders of the Notes do not have any registration rights. All of the issued Notes are held by multiple institutions. Woodward’s payment and performance obligations under the Notes, including without limitation the obligations for payment of all principal, interest and any applicable prepayment compensation amount, are guaranteed by (i) Woodward FST, Inc., Woodward MPC, Inc., and Woodward HRT, Inc., each of which is a wholly owned subsidiary of Woodward, and (ii) in the case of the BV Subsidiary’s Series N and O Notes, by Woodward. Woodward’s obligations under the Notes rank equal in right of payment with all of Woodward’s other unsecured unsubordinated debt, including its outstanding debt under its revolving credit facility. The Notes contain restrictive covenants customary for such financings, including, among other things, covenants that place limits on Woodward’s ability to incur liens on assets, incur additional debt (including a leverage or coverage-based maintenance test), transfer or sell Woodward’s assets, merge or consolidate with other persons and enter into material transactions with affiliates. Under the financial covenants contained in the note purchase agreement governing each series of the Notes, Woodward’s priority debt may not exceed, at any time, 25% of its consolidated net worth. Woodward’s Leverage Ratio cannot exceed 4.0 to 1.0 during any material acquisition period, or 3.5 to 1.0 at any other time on a rolling four quarter basis. In the event that Woodward’s Leverage Ratio exceeds 3.5 to 1.0 during any material acquisition period, the interest rate on each series of Notes will increase. The minimum consolidated net worth, prior year positive net income, and net cash proceeds resulting from certain issuances of stock for satisfaction of Woodward’s leverage ratio are consistent between the Notes and Revolving Credit Agreement. Required future principal payments of the Notes as of September 30, 2022 Year Ending September 30: 2023 $ — 2024 75,000 2025 85,000 2026 114,198 2027 85,000 Thereafter 347,595 $ 706,793 Certain financial and other covenants under Woodward’s debt agreements contain customary restrictions on the operation of its business. Management believes that Woodward was in compliance with the covenants under the long-term debt agreements at September 30, 2022 Debt Issuance Costs Amounts recognized as interest expense from the amortization of debt issuance costs were $917 in fiscal year 2022, $922 in fiscal year 2021, and $892 in fiscal year 2020. Unamortized debt issuance costs associated with the Notes of $1,438 as of September 30, 2022 and $1,856 as of September 30, 2021 were recorded as a reduction in “Long-term debt, less current portion” in the Consolidated Balance Sheets. Unamortized debt issuance costs associated with Woodward’s Revolving Credit Agreements of $1,046 as of September 30, 2022 and $1,644 as of September 30, 2021 were recorded as “Other assets” in the Consolidated Balance Sheets. Amortization of debt issuance costs is included in operating activities in the Consolidated Statements of Cash Flows. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 16. Accrued liabilities September 30, 2022 September 30, 2021 Salaries and other member benefits $ 75,665 $ 54,497 Product warranties and related liabilities ( 1 ) 40,042 17,481 Interest payable 13,481 14,822 Accrued retirement benefits 2,779 2,825 Net current contract liabilities (Note 3) 30,663 29,527 Current portion of accrued restructuring charges ( 2 ) 1,083 4,495 Taxes, other than income 21,159 19,453 Purchase of treasury stock in transit — 12,516 Other 21,411 27,523 $ 206,283 $ 183,139 (1) In fiscal year 2022, product warranties and related liabilities include estimates related to product liabilities expected to be fully recoverable from insurance. (2) In fiscal year 2021, other liabilities included $513 of accrued restructuring charges. Product warranties and related liabilities Provisions of Woodward’s sales agreements include product warranties customary to these types of agreements. Accruals are established for specifically identified warranty issues and related liabilities that are probable to result in future costs. Warranty costs are accrued as revenue is recognized on a non-specific basis whenever past experience indicates a normal and predictable pattern exists. Changes in accrued product warranties and related liabilities were as follows: Year Ended September 30, 2022 2021 2020 Beginning of period $ 17,481 $ 18,972 $ 27,309 Additions, net of recoveries 29,827 1,164 8,687 Reductions for settlement (6,937 ) (2,718 ) (17,422 ) Foreign currency exchange rate changes (329 ) 63 398 End of period $ 40,042 $ 17,481 $ 18,972 Restructuring charges In fiscal year 2022, the Company determined to implement a streamlined Aerospace and Industrial organizational and leadership structure designed to enhance the sales experience for customers, simplify operations, and increase profitability through improved execution. In connection with leadership changes arising from such reorganization, we recorded $1,083 of restructuring charges as nonsegment expenses, the majority of which are expected to be paid within twelve months. In fiscal year 2021, the Company recorded aggregate restructuring charges totaling $5,008 as nonsegment expenses for two separate workforce management actions, one in our hydraulics systems business and one in our engine systems business. In fiscal year 2022, we experienced a challenging operating environment that included the ongoing impact of global supply chain and labor disruptions, along with high inflation, which resulted in changed business conditions as compared to when we initially recorded the restructuring charges in fiscal year 2021. We adapted to the changed business conditions by, among other initiatives, (i) developing and implementing plans to insource select machined components, (ii) redeploying talent and adding indirect resources to our factories to stabilize the production environment, and (iii) determining to retain employees that otherwise would have been impacted by the planned restructuring activities to support a stable workforce and effectively manage through attrition. As such, the remaining unpaid accrued restructuring charges, which amounted to $4,503, were no longer needed and were reversed. In fiscal year 2020, the Company committed to a plan of termination (the “COVID-19 Termination Plan”), as well as other cost savings actions, in response to the ongoing global economic challenges resulting from the COVID-19 pandemic and its impact on the Company’s business. The COVID-19 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 COVID-19 Termination Plan and other related actions, the Company incurred $23,673 of restructuring charges for employee severance and benefits costs as of September 30, 2020, with the majority of the cash expenditures being paid by September 30, 2020. All of the restructuring charges recorded during the fiscal year ended September 30, 2020 were (i) recorded as nonsegment expenses and (ii) were paid or reversed, as appropriate, as of September 30, 2021. The summary of activity in accrued restructuring charges during the fiscal years ended September 30, 2022 Period Activity Balances as of September 30, 2021 Charges Payments Foreign currency exchange rate changes Non-cash activity Balances as of September 30, 2022 Workforce management costs associated with: Hydraulics Systems Realignment $ 3,758 $ — $ (505 ) $ — $ (3,253 ) $ — Engine Systems Realignment 1,250 — — — (1,250 ) — Aerospace — 139 — — — 139 Industrial — 944 — — — 944 Total $ 5,008 $ 1,083 $ (505 ) $ — $ (4,503 ) $ 1,083 Period Activity Balances as of September 30, 2020 Charges Payments Foreign currency exchange rate changes Non-cash activity Balances as of September 30, 2021 Workforce management costs associated with: Hydraulics Systems Realignment $ — $ 3,758 $ — $ — $ — $ 3,758 Engine Systems Realignment — 1,250 — — — 1,250 COVID-19 pandemic 3,395 — (2,409 ) 180 (1,166 ) — Total $ 3,395 $ 5,008 $ (2,409 ) $ 180 $ (1,166 ) $ 5,008 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Noncurrent [Abstract] | |
Other Liabilities | Note 17. Other liabilities September 30, 2022 September 30, 2021 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 70,168 $ 107,074 Total unrecognized tax benefits 9,757 13,412 Noncurrent income taxes payable 14,329 16,257 Deferred economic incentives (1) 7,029 8,173 Cross-currency swap derivative liability — 50,185 Noncurrent operating lease liabilities 21,443 14,770 Net noncurrent contract liabilities 396,345 386,324 Other 10,185 21,713 $ 529,256 $ 617,908 (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 | 12 Months Ended |
Sep. 30, 2022 | |
Nonoperating Income Expense [Abstract] | |
Other (Income) Expense, Net | Note 18. Other (income) expense, net Year Ended September 30, 2022 2021 2020 Equity interest in the earnings of the JV (Note 6) $ (18,193 ) $ (11,366 ) $ (15,580 ) Net gain on sales of assets and businesses (1) (1,775 ) (4,452 ) (23,598 ) Rent income (672 ) (1,355 ) (1,403 ) Net loss (gain) on investments in deferred compensation program 6,295 (4,929 ) (3,376 ) Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense (11,572 ) (14,127 ) (11,809 ) Other (774 ) (264 ) (400 ) $ (26,691 ) $ (36,493 ) $ (56,166 ) (1) Included in net gain on sale of assets and businesses for the fiscal year ended September 30, 2020 was the pre-tax gain on sale of Duarte real property in the amount of $22,323 and the pre-tax gain on sale of the Loveland campus of $2,330 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 19. Income taxes Income taxes consisted of the following: Year Ended September 30, 2022 2021 2020 Current: Federal $ 21,869 $ 15,109 $ 15,976 State 2,310 853 1,383 Foreign 27,577 34,354 22,588 Deferred: Federal (13,216 ) (8,369 ) 10,784 State (8,623 ) (2,658 ) (547 ) Foreign (1,717 ) (2,139 ) (8,698 ) $ 28,200 $ 37,150 $ 41,486 Earnings before income taxes by geographical area consisted of the following: Year Ended September 30, 2022 2021 2020 United States $ 99,427 $ 136,280 $ 180,753 Other countries 100,471 109,519 101,128 $ 199,898 $ 245,799 $ 281,881 Significant components of deferred income taxes presented in the Consolidated Balance Sheets are related to the following: September 30, 2022 September 30, 2021 Deferred tax assets: Defined benefit plans, other postretirement $ 4,144 $ 5,364 Foreign net operating loss carryforwards 3,449 2,110 Inventory 57,102 51,011 Stock-based and other compensation 42,428 36,343 Deferred revenue net of unbilled receivables 49,491 46,002 Other reserves 8,017 10,619 Tax credits and incentives 25,623 22,756 Lease obligations 7,150 5,818 Other 3,402 7,936 Valuation allowance (2,537 ) (4,138 ) Total deferred tax assets, net of valuation allowance 198,269 183,821 Deferred tax liabilities: Goodwill and intangibles - net (187,988 ) (210,911 ) Property, plant and equipment (100,215 ) (105,724 ) Right of use assets (7,013 ) (5,497 ) Defined benefit plans, pension (3,969 ) (2,837 ) Other (2,832 ) (2,722 ) Total deferred tax liabilities (302,017 ) (327,691 ) Net deferred tax liabilities $ (103,748 ) $ (143,870 ) Woodward has recorded a net operating loss (“NOL”) deferred tax asset of $3,449 as of September 30, 2022 and $2,110 as of September 30, 2021. The majority of the NOL carryforwards as of September 30, 2022 expire at various times beginning in fiscal years 2023 through 2029. Woodward has recorded tax credits and incentives deferred tax assets of $25,623 as of September 30, 2022 and $22,756 as of September 30, 2021. The majority of the tax credit and incentive carryforwards as of September 30, 2022 expire at various times beginning in fiscal year 2023 through 2034. Deferred tax assets are reduced by a valuation allowance when the realization of the deferred tax asset is less than 50 percent likely. Both positive and negative evidence are considered in forming Woodward’s judgment as to whether a valuation allowance is appropriate, and more weight is given to evidence that can be objectively verified. Valuation allowances are reassessed whenever there are changes in circumstances that may cause a change in judgment. The change in the valuation allowance was primarily the result of releasing a valuation allowance related to certain state tax credit carryforwards that we determined are now more likely than not realizable. At September 30, 2022, Woodward has not provided for taxes on undistributed foreign earnings of $346,000 that it considered indefinitely reinvested. These earnings could become subject to income taxes if they are remitted as dividends, are loaned to Woodward or any of Woodward’s subsidiaries located in the United States, or if Woodward sells its stock in the foreign subsidiaries. Any additional U.S. taxes could be offset, in part or in whole, by foreign tax credits. The amount of such taxes and application of tax credits would be dependent on the income tax laws and other circumstances at the time these amounts are repatriated. Based on these variables, it is impractical to determine the income tax liability that might be incurred if these funds were to be repatriated. The following is a reconciliation of the U.S. Federal statutory tax 21% in the fiscal years ended September 30, 2022, September 30, 2021 and September 30, 2020 to Woodward’s effective income tax rate: Year Ending September 30, 2022 2021 2020 Percent of pretax earnings Statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit (2.5 ) (0.5 ) 0.3 Taxes on international activities 0.8 (0.1 ) (2.1 ) Research credit (4.5 ) (3.1 ) (3.6 ) Net excess income tax benefit from stock-based compensation (2.5 ) (4.2 ) (2.8 ) Adjustments of prior period tax items — 0.4 1.0 Compensation and benefits 0.3 0.5 0.4 Other items, net 1.5 1.1 0.5 Effective tax rate 14.1 % 15.1 % 14.7 % In determining the tax amounts in Woodward’s financial statements, estimates are sometimes used that are subsequently adjusted in the actual filing of tax returns or by updated calculations. In addition, Woodward occasionally has resolutions of tax items with tax authorities related to prior years due to the conclusion of audits and the lapse of applicable statutes of limitations. Such adjustments are included in the “Adjustments of prior period tax items” line in the above table. The decrease in the effective tax rate for fiscal year 2022 compared to fiscal year 2021 is primarily attributable to a partial release of valuation allowance related to state credits and increased Research and Development Credit in the current fiscal year when compared to the prior fiscal year. This decrease was partially offset by a smaller stock-based compensation tax benefit in the current fiscal year when compared to the prior fiscal year. A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows: Year Ending September 30, 2022 2021 2020 Beginning balance $ 15,199 $ 9,851 $ 10,305 Additions to current year tax positions 1,783 2,289 1,890 Reductions to prior year tax positions (963 ) — (2,415 ) Additions to prior year tax positions 112 3,166 71 Lapse of applicable statute of limitations (4,193 ) (107 ) — Ending balance $ 11,938 $ 15,199 $ 9,851 Included in the balance of unrecognized tax benefits were $8,092 as of September 30, 2022 and $8,724 as of September 30, 2021 of tax benefits that, if recognized, would affect the effective tax rate. At this time, Woodward estimates that it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $4,203 in the next twelve months due to the completion of review by tax authorities, lapses of statutes, and the settlement of tax positions. Woodward accrues for potential interest and penalties related to unrecognized tax benefits and all other interest and penalties related to tax payments in tax expense. Woodward’s tax returns are subject to audits by U.S. federal, state, and foreign tax authorities, and these audits are at various stages of completion at any given time. Reviews of tax matters by authorities and lapses of the applicable statutes of limitation may result in changes to tax expense. Woodward’s fiscal years remaining open to examination for U.S. Federal income taxes include fiscal years 2019 and thereafter. In fiscal year 2020, Woodward concluded its U.S. Federal income tax examination through fiscal year 2017, which included a foreign tax carryback to fiscal year 2016. Woodward’s fiscal years remaining open to examination for significant U.S. state income tax jurisdictions include fiscal years 2018 and thereafter. Woodward’s, fiscal years remaining open to examination in significant foreign jurisdictions include 2017 and thereafter. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Sep. 30, 2022 | |
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. Prior to January 1, 2021 most of Woodward’s U.S. employees with at least two years of qualifying service (such two years of service, the “Initial Period of Service”) received an annual contribution of Woodward stock, generally equal to 5% of their eligible prior year wages, to their personal Woodward Retirement Savings Plan accounts (the “Stock Contribution”). Effective as of January 1, 2021, the Board amended the Woodward Retirement Savings Plan to eliminate the Initial Period Service for purposes of the Stock Contribution. Eligible U.S. employees are now generally eligible to receive the Stock Contribution if they are employed by the Company on the last day of the applicable calendar year without regard to service time. The first Company Stock Contribution under the amended contribution rules were made during the second quarter of fiscal year 2022. In the second quarters of fiscal years 2022, 2021, and 2020, Woodward fulfilled its annual Woodward stock contribution obligation using shares held in treasury stock by issuing a total of 150 shares of common stock for a value of $17,132 in fiscal year 2022, 128 total shares of common stock for a value of $14,900 in fiscal year 2021, and 124 shares of common stock for a value of $14,748 in fiscal year 2020. The Woodward Retirement Savings Plan (the “WRS Plan”) held 2,553 shares of Woodward stock as of September 30, 2022 and 2,760 shares as of September 30, 2021. The shares held in the WRS Plan participate in dividends and are considered issued and outstanding for purposes of calculating basic and diluted earnings per share. Accrued liabilities included obligations to contribute shares of Woodward common stock to the WRS Plan in the amount of $14,769 as of September 30, 2022 and $11,588 as of September 30, 2021. The amount of expense associated with defined contribution plans was as follows: Year Ended September 30, 2022 2021 2020 Company costs $ 40,898 $ 33,717 $ 33,769 Defined benefit plans Woodward has defined benefit plans that provide pension benefits for certain retired employees in the United States, the United Kingdom, Japan, and Germany. Woodward also provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees and their covered dependents and beneficiaries in the United States and the United Kingdom. Life insurance benefits are provided to certain retirees in the United States under frozen plans, which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for all of Woodward’s defined benefit pension and other postretirement benefit plans. Excluding the Woodward HRT Plan, which is only partially frozen to salaried participants, the defined benefit plans in the United States were frozen in fiscal year 2007 and no additional employees may participate in the U.S. plans and no additional service costs will be incurred. Pension Plans The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of retirement pension benefits were as follows: At September 30, 2022 2021 2020 United States: Weighted-average assumptions to determine benefit obligation: Discount rate 5.70% 3.05% 2.75% Weighted-average assumptions to determine periodic benefit costs: Discount rate 3.05 2.75 3.25 Long-term rate of return on plan assets 5.00 7.15 7.39 The discount rate assumption is intended to reflect the rate at which the retirement benefits could be effectively settled based upon the assumed timing of the benefit payments. In the United States, Woodward uses a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding to determine the benefit obligations at year end. At September 30, 2022 2021 2020 United Kingdom: Weighted-average assumptions to determine benefit obligation: Discount rate 5.35% 2.05% 1.62% Rate of compensation increase 4.00 3.80 3.30 Weighted-average assumptions to determine periodic benefit costs: Discount rate - service cost 2.15 1.71 1.79 Discount rate - interest cost 1.83 1.41 1.59 Rate of compensation increase 4.00 3.30 3.50 Long-term rate of return on plan assets 3.80 4.00 4.75 At September 30, 2022 2021 2020 Japan: Weighted-average assumptions to determine benefit obligation: Discount rate 1.60% 0.92% 1.10 % Rate of compensation increase 2.00 2.00 2.00 Weighted-average assumptions to determine periodic benefit costs: Discount rate - service cost 1.13 1.33 0.72 Discount rate - interest cost 0.65 0.74 0.31 Rate of compensation increase 2.25 2.00 2.00 Long-term rate of return on plan assets 2.00 2.00 2.50 At September 30, 2022 2021 2020 Germany: Weighted-average assumptions to determine benefit obligation: Discount rate 3.97 % 1.36 % 0.97 % Rate of compensation increase 2.50 2.50 2.50 Weighted-average assumptions to determine periodic benefit costs: Discount rate - service cost 1.54 1.11 1.01 Discount rate - interest cost 1.06 0.76 0.56 Rate of compensation increase 2.50 2.50 2.50 In the United Kingdom, Germany and Japan, Woodward uses a high-quality corporate bond yield curve matched with separate cash flows to develop a single rate to determine the single rate equivalent to settle the entire benefit obligations in each jurisdiction. For the fiscal years ended September 30, 2022 and 2021, the discount rate used to determine periodic service cost and interest cost components of the overall benefit costs was based on spot rates derived from the same high-quality corporate bond yield curve used to determine the September 30, 2021 and 2020 benefit obligation, respectively, matched with separate cash flows for each future year. Compensation increase assumptions, where applicable, are based upon historical experience and anticipated future management actions. In determining the long-term rate of return on plan assets, Woodward assumes that the historical long-term compound growth rates of equity and fixed-income securities will predict the future returns of similar investments in the plan portfolio. Investment management and other fees paid out of the plan assets are factored into the determination of asset return assumptions. Mortality assumptions are based on published mortality studies developed primarily based on past experience of the broad population and modified for projected longevity trends. The projected benefit obligations in the United States as of September 30, 2022 and September 30, 2021 were based on the Society of Actuaries (“SOA”) Pri-2012 Mortality Tables Report using the SOA’s Mortality Improvement Scale MP-2019 (“MP-2019”) and projected forward using a custom projection scale based on MP-2019 with a 5-year convergence period and a long-term rate of 0.75%. As of September 30, 2022 and September 30, 2021, mortality assumptions in Japan were based on the Standard rates 2020 and mortality assumptions for the United Kingdom pension scheme were based on the Self-administered pension scheme (“SAPS”) S3 “all” tables with a projected 1.5% annual improvement rate. As of September 30, 2022, and September 30, 2021, mortality assumptions in Germany were based on the Heubeck 2018 G mortality tables. Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statement of Earnings: Year Ended September 30, United States Other Countries Total 2022 2021 2020 2022 2021 2020 2022 2021 2020 Service cost $ 1,554 $ 1,729 $ 1,659 $ 2,339 $ 2,922 $ 2,865 $ 3,893 $ 4,651 $ 4,524 Interest cost 5,281 4,957 5,590 1,612 1,361 1,278 6,893 6,318 6,868 Expected return on plan assets (10,853 ) (14,144 ) (12,346 ) (2,434 ) (2,482 ) (2,827 ) (13,287 ) (16,626 ) (15,173 ) Amortization of: Net losses 259 541 1,430 555 931 1,046 814 1,472 2,476 Net prior service cost 981 969 936 23 25 23 1,004 994 959 Net periodic (benefit) cost $ (2,778 ) $ (5,948 ) $ (2,731 ) $ 2,095 $ 2,757 $ 2,385 $ (683 ) $ (3,191 ) $ (346 ) The following tables provide a reconciliation of the changes in the projected benefit obligation and fair value of assets for the defined benefit pension plans: At or for the Year Ended September 30, United States Other Countries Total 2022 2021 2022 2021 2022 2021 Changes in projected benefit obligation: Projected benefit obligation at beginning of year $ 177,346 $ 184,077 $ 122,018 $ 123,546 $ 299,364 $ 307,623 Plan amendment — 611 — — — 611 Service cost 1,554 1,729 2,339 2,922 3,893 4,651 Interest cost 5,281 4,957 1,612 1,361 6,893 6,318 Net actuarial losses (gains) (43,639 ) (6,496 ) (40,968 ) (3,459 ) (84,607 ) (9,955 ) Contribution by participants — — 10 10 10 10 Benefits paid (8,098 ) (7,532 ) (3,487 ) (3,782 ) (11,585 ) (11,314 ) Foreign currency exchange rate changes — — (16,047 ) 1,420 (16,047 ) 1,420 Projected benefit obligation at end of year $ 132,444 $ 177,346 $ 65,477 $ 122,018 $ 197,921 $ 299,364 Changes in fair value of plan assets: Fair value of plan assets at beginning of year $ 221,263 $ 201,555 $ 69,844 $ 65,154 $ 291,107 $ 266,709 Actual return on plan assets (58,684 ) 27,240 (9,822 ) 4,675 (68,506 ) 31,915 Contributions by the Company — — 2,370 2,185 2,370 2,185 Contributions by plan participants — — 10 10 10 10 Benefits paid (8,098 ) (7,532 ) (3,487 ) (3,782 ) (11,585 ) (11,314 ) Foreign currency exchange rate changes — — (11,336 ) 1,602 (11,336 ) 1,602 Fair value of plan assets at end of year $ 154,481 $ 221,263 $ 47,579 $ 69,844 $ 202,060 $ 291,107 Net over/(under) funded status at end of year $ 22,037 $ 43,917 $ (17,898 ) $ (52,174 ) $ 4,139 $ (8,257 ) At September 30, 2022, the Company’s defined benefit pension plans in the United Kingdom, Japan and Germany represented $30,788, $6,976 and $27,713 of the total projected benefit obligation, respectively. At September 30, 2022, the United Kingdom and Japan pension plan assets represented $39,096 and $8,483 of the total fair value of all plan assets, respectively. The German pension plans are unfunded and have no plan assets. The largest contributor to the net actuarial gains affecting the funded status for the defined benefit pension plans in the United States is due to an increase in the discount rate. The largest contributor to the net actuarial gains affecting the benefit obligation for the defined benefit pension plans in the United Kingdom, Japan, and Germany is due to an increase in the discount rate. The accumulated benefit obligations of the Company’s defined benefit pension plans at September 30, 2022 was $132,444 in the United States, $30,342 in the United Kingdom, $6,432 in Japan, and $27,707 in Germany, and at September 30, 2021 was $177,346 in the United States, $60,690 in the United Kingdom, $8,958 in Japan, and $50,402 in Germany. Plans with accumulated benefit obligation in excess of plan assets Plans with accumulated benefit obligation less than plan assets At September 30, At September 30, 2022 2021 2022 2021 Projected benefit obligation $ (48,371 ) $ (112,302 ) $ (149,550 ) $ (187,062 ) Accumulated benefit obligation (48,354 ) (111,151 ) (148,571 ) (186,245 ) Fair value of plan assets 18,459 57,945 183,601 233,161 The following tables provide the amounts recognized in the statement of financial position and accumulated other comprehensive losses for the defined benefit pension plans: Year Ended September 30, United States Other Countries Total 2022 2021 2022 2021 2022 2021 Amounts recognized in statement of financial position consist of: Other non-current assets $ 24,159 $ 43,917 $ 9,892 $ 2,182 $ 34,051 $ 46,099 Accrued liabilities — — (976 ) (1,017 ) (976 ) (1,017 ) Other non-current liabilities (2,122 ) — (26,814 ) (53,339 ) (28,936 ) (53,339 ) Net over/(under) funded status at end of year $ 22,037 $ 43,917 $ (17,898 ) $ (52,174 ) $ 4,139 $ (8,257 ) Amounts recognized in accumulated other comprehensive income consist of: Unrecognized net prior service cost $ 3,475 $ 4,455 $ 462 $ 584 $ 3,937 $ 5,039 Unrecognized net losses (gains) 14,822 (10,816 ) (5,459 ) 24,860 9,363 14,044 Total amounts recognized 18,297 (6,361 ) (4,997 ) 25,444 13,300 19,083 Deferred taxes (7,801 ) (1,691 ) (697 ) (7,785 ) (8,498 ) (9,476 ) Amounts recognized in accumulated other comprehensive income $ 10,496 $ (8,052 ) $ (5,694 ) $ 17,659 $ 4,802 $ 9,607 The following table reconciles the changes in accumulated other comprehensive losses for the defined benefit pension plans: Year Ended September 30, United States Other Countries Total 2022 2021 2022 2021 2022 2021 Accumulated other comprehensive losses at beginning of year $ (6,361 ) $ 14,131 $ 25,444 $ 31,377 $ 19,083 $ 45,508 Net loss (gain) 25,898 (19,593 ) (28,712 ) (5,832 ) (2,814 ) (25,425 ) Prior service cost due to plan amendment — 611 — — — 611 Amortization of: Net losses (259 ) (541 ) (555 ) (931 ) (814 ) (1,472 ) Prior service cost (981 ) (969 ) (23 ) (25 ) (1,004 ) (994 ) Foreign currency exchange rate changes — — (1,151 ) 855 (1,151 ) 855 Accumulated other comprehensive losses at end of year $ 18,297 $ (6,361 ) $ (4,997 ) $ 25,444 $ 13,300 $ 19,083 Pension benefit payments are made from the assets of the pension plans. The German pension plans are unfunded; therefore, benefit payments are made from Company contributions into these plans as required to meet the payment obligations. Using foreign exchange rates as of September 30, 2022 and expected future service assumptions, it is anticipated that the future benefit payments will be as follows: Year Ending September 30, United States Other Countries Total 2023 $ 8,839 $ 3,184 $ 12,023 2024 9,310 3,083 12,393 2025 9,673 3,060 12,733 2026 9,967 3,069 13,036 2027 10,235 3,180 13,415 2028 – 2032 52,807 19,239 72,046 Woodward expects its pension plan contributions in fiscal year 2023 will be $1,044 in the United Kingdom, $134 in Japan and $990 in Germany. Woodward expects to have no pension plan contributions in fiscal year 2023 in the United States. Pension plan assets The overall investment objective of the pension plan assets is to earn a rate of return over time which, when combined with Company contributions, satisfies the benefit obligations of the pension plans and maintains sufficient liquidity to pay benefits. As the timing and nature of the plan obligations varies for each Company sponsored pension plan, investment strategies have been individually designed for each pension plan with a common focus on maintaining diversified investment portfolios that provide for long-term growth while minimizing the risk to principal associated with short-term market behavior. The strategy for each of the plans balances the requirements to generate returns, using investments expected to produce higher returns, such as equity securities, with the need to control risk within the pension plans using less volatile investment assets, such as debt securities. A strategy of more equity-oriented allocation is adopted for those plans which have a longer-term investment plan based on the timing of the associated benefit obligations. Risks associated with the plan assets include interest rate fluctuation risk, market fluctuation risk, risk of default by debt issuers and liquidity risk. To manage these risks, the assets are managed by established, professional investment firms and performance is evaluated regularly by the Company’s pension oversight committee against specific benchmarks and each plan’s investment objectives. Liability management and asset class diversification are central to the Company’s risk management approach and overall investment strategy. The assets of the U.S. plans are invested in actively managed mutual funds. The assets of the plans in the United Kingdom and Japan are invested in actively managed pooled investment funds. Each individual mutual fund or pooled investment fund has been selected based on the investment strategy of the related plan, which mirrors a specific asset class within the associated target allocation. The plans in Germany are unfunded and have no plan assets. Pension plan assets at September 30, 2022 and 2021 do not include any direct investment in Woodward’s common stock. The asset allocations are monitored and rebalanced regularly by investment managers assigned to the individual pension plans. The actual allocations of pension plan assets and target allocation ranges by asset class, are as follows: At September 30, 2022 2021 Percentage of Plan Assets Target Allocation Ranges Percentage of Plan Assets Target Allocation Ranges United States: Asset Class Equity Securities 29.5% 2.4% — 51.2% 30.7% 2.5% — 51.2% Debt Securities 69.0% 58.8% — 87.6% 67.7% 58.8% — 87.5% Other 1.5% 0.0% 1.6% 0.0% 100.0% 100.0% United Kingdom: Asset Class Equity Securities 46.2% 50.0% — 90.0% 42.3% 50.0% — 90.0% Debt Securities 52.3% 45.0% — 70.0% 57.3% 45.0% — 70.0% Other 1.5% 0.0% 0.4% 0.0% 100.0% 100.0% Japan: Asset Class Equity Securities 39.9% 36.0% — 44.0% 40.3% 36.0% — 44.0% Debt Securities 60.1% 55.0% — 63.0% 58.8% 55.0% — 63.0% Other 0.0% 0.0% — 2.0% 0.9% 0.0% — 2.0% 100.0% 100.0% Actual allocations to each asset class can vary from target allocations due to periodic market value fluctuations, investment strategy changes, and the timing of benefit payments and contributions. The following tables present Woodward’s pension plan assets using the fair value hierarchy established by U.S. GAAP: At September 30, 2022 Level 1 Level 2 Level 3 United States Other Countries United States Other Countries United States Other Countries Total Asset Category: Cash and cash equivalents $ 2,265 $ 467 $ — $ — $ — $ — $ 2,732 Mutual funds: U.S. corporate bond fund 106,653 — — — — — 106,653 U.S. equity large cap fund 28,088 — — — — — 28,088 International equity large cap growth fund 17,475 — — — — — 17,475 Pooled funds: Japanese equity securities — — — 1,775 — — 1,775 International equity securities — — — 1,610 — — 1,610 Japanese fixed income securities — — — 3,875 — — 3,875 International fixed income securities — — — 1,325 — — 1,325 Global target return equity/bond fund — — — 11,533 — — 11,533 Index linked U.K. equity fund — — — 2,253 — — 2,253 Index linked international equity fund — — — 4,271 — — 4,271 Index linked U.K. corporate bonds fund — — — 12,124 — — 12,124 Index linked U.K. government securities fund — — — 3,701 — — 3,701 Index linked U.K. long-term government securities fund — — — 4,645 — — 4,645 Total assets $ 154,481 $ 467 $ — $ 47,112 $ — $ — $ 202,060 At September 30, 2021 Level 1 Level 2 Level 3 United States Other Countries United States Other Countries United States Other Countries Total Asset Category: Cash and cash equivalents $ 3,508 $ 324 $ — $ — $ — $ — $ 3,832 Mutual funds: U.S. corporate bond fund 149,727 — — — — — 149,727 U.S. equity large cap fund 41,988 — — — — — 41,988 International equity large cap growth fund 26,040 — — — — — 26,040 Pooled funds: Japanese equity securities — — — 2,610 — — 2,610 International equity securities — — — 2,180 — — 2,180 Japanese fixed income securities — — — 5,224 — — 5,224 International fixed income securities — — — 1,775 — — 1,775 Global target return equity/bond fund — — — 15,201 — — 15,201 Index linked U.K. equity fund — — — 3,236 — — 3,236 Index linked international equity fund — — — 6,093 — — 6,093 Index linked U.K. corporate bonds fund — — — 18,438 — — 18,438 Index linked U.K. government securities fund — — — 6,047 — — 6,047 Index linked U.K. long-term government securities fund — — — 8,716 — — 8,716 Total assets $ 221,263 $ 324 $ — $ 69,520 $ — $ — $ 291,107 Cash and cash equivalents : Cash and cash equivalents held by the Company’s pension plans are held on deposit with creditworthy financial institutions. The fair value of the cash and cash equivalents are based on the quoted market price of the respective currency in which the cash is maintained. Pension assets invested in mutual funds : The assets of the Company’s U.S. pension plans are invested in various mutual funds which invest in both equity and debt securities. The fair value of the mutual funds is determined based on the quoted market price of each fund. Pension assets invested in pooled funds : The assets of the Company’s Japan and United Kingdom pension plans are invested in pooled investment funds, which include both equity and debt securities. The assets of the United Kingdom pension plan are invested in index-linked pooled funds which aim to replicate the movements of an underlying market index to which the fund is linked. Fair value of the pooled funds is based on the net asset value of shares held by the plan as reported by the fund sponsors. All pooled funds held by plans outside of the United States are considered to be invested in international equity and debt securities. Although the underlying securities may be largely domestic to the plan holding the investment assets, the underlying assets are considered international from the perspective of the Company. There were no transfers into or out of Level 3 assets in fiscal years 2022 or 2021. Other postretirement benefit plans Woodward provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees and their covered dependents and beneficiaries in the United States. Benefits include the option to elect company provided medical insurance coverage to age 65 and a Medicare supplemental plan after age 65. Life insurance benefits are also provided to certain retirees in the United States under frozen plans which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for Woodward’s other postretirement benefit plans. The postretirement medical benefit plans, other than the plan assumed in an acquisition in fiscal year 2009, were frozen in fiscal year 2006 and no additional employees may participate in the plans. Generally, employees who had attained age 55 and had rendered 10 or more years of service before the plans were frozen were eligible for these postretirement medical benefits. Certain participating retirees are required to contribute to the plans in order to maintain coverage. The plans provide postretirement medical benefits for approximately 7 retired employees and their covered dependents and beneficiaries and may provide future benefits to 401 active employees and their covered dependents and beneficiaries, upon retirement, if the employees elect to participate. All the postretirement medical plans are fully insured for retirees who have attained age 65. The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of postretirement benefits were as follows: At September 30, 2022 2021 2020 Weighted-average discount rate used to determine benefit obligation 5.70 % 2.80 % 2.45 % Weighted-average discount rate used to determine net periodic benefit cost 2.80 2.45 3.05 The discount rate assumption is intended to reflect the rate at which the postretirement benefits could be effectively settled based upon the assumed timing of the benefit payments. Woodward used a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding to determine the benefit obligations at year end. Mortality assumptions are based on published mortality studies developed primarily based on past experience of the broad population and modified for projected longevity trends. The projected benefit obligations in the United States as of September 30, 2022 and September 30, 2021 were based on the SOA Pri-2012 Mortality Tables Report using the SOA’s MP-2019 and projected forward using a custom projection scale based on MP-2019 with a 5-year convergence period and a long-term rate of 0.75%. Assumed healthcare cost trend rates at September 30, were as follows: 2022 2021 Health care cost trend rate assumed for next year 6.00 % 6.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2027 2027 Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statements of Earnings: Year Ended September 30, 2022 2021 2020 Service cost $ 1 $ 1 $ 2 Interest cost 577 599 782 Amortization of: Net (gain) loss (94 ) 30 47 Net prior service cost (benefit) — 1 3 Net periodic cost $ 484 $ 631 $ 834 The following table provides a reconciliation of the changes in the accumulated postretirement benefit obligation and fair value of assets for the postretirement benefits: Year Ended September 30, 2022 2021 Changes in accumulated postretirement benefit obligation: Accumulated postretirement benefit obligation at beginning of year $ 21,544 $ 25,445 Service cost 1 1 Interest cost 577 599 Premiums paid by plan participants 923 993 Net actuarial gains (3,504 ) (2,422 ) Benefits paid (2,744 ) (3,072 ) Accumulated postretirement benefit obligation at end of year $ 16,797 $ 21,544 Changes in fair value of plan assets: Fair value of plan assets at beginning of year $ — $ — Contributions by the company 1,821 2,079 Premiums paid by plan participants 923 993 Benefits paid (2,744 ) (3,072 ) Fair value of plan assets at end of year $ — $ — Funded status at end of year $ (16,797 ) $ (21,544 ) The following tables provide the amounts recognized in the statement of financial position and accumulated other comprehensive losses for the postretirement plans: Year Ended September 30, 2022 2021 Amounts recognized in statement of financial position consist of: Accrued liabilities $ (1,803 ) $ (1,808 ) Other non-current liabilities (14,994 ) (19,736 ) Funded status at end of year $ (16,797 ) $ (21,544 ) Amounts recognized in accumulated other comprehensive income consist of: Unrecognized net prior service cost (benefit) $ - $ - Unrecognized net gains (6,225 ) (2,815 ) Total amounts recognized (6,225 ) (2,815 ) Deferred taxes 1,247 289 Amounts recognized in accumulated other comprehensive income $ (4,978 ) $ (2,526 ) Woodward pays plan benefits from its general funds; therefore, there are no segregated plan assets as of September 30, 2022 or September 30, 2021. The accumulated benefit obligations of the Company’s postretirement plans were $16,797 at September 30, 2022 and $21,544 at September 30, 2021. The largest contributor to the actuarial gains affecting the Company’s postretirement plans accumulated benefit obligations were the claims experience being lower than expected and increase in discount rate. The following table reconciles the changes in accumulated other comprehensive losses for the other postretirement benefit plans: Year Ended September 30, 2022 2021 Accumulated other comprehensive losses at beginning of year $ (2,815 ) $ (362 ) Net gain (3,504 ) (2,422 ) Amortization of: Net gains (losses) 94 (30 ) Prior service cost — (1 ) Accumulated other comprehensive losses at end of year $ (6,225 ) $ (2,815 ) Using expected future service, it is anticipated that the future Company contributions to pay benefits for other postretirement benefit plans, excluding participate contributions, will be as follows: Year Ending September 30, 2023 $ 2,816 2024 2,765 2025 2,691 2026 2,602 2027 2,490 2028 – 2032 10,659 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Note 21. Stockholders’ equity Common Stock Holders of Woodward’s common stock are entitled to receive dividends when and as declared by the Board and have the right to one vote per share on all matters requiring stockholder approval. Dividends declared and paid were as follows: Year Ended September 30, 2022 2021 2020 Dividends declared and paid $ 44,978 $ 36,041 $ 37,664 Dividend per share amount 0.7325 0.5688 0.6050 Stock repurchase program In November 2019, the Board had authorized a program for the repurchase of up to $500,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year In January 2022, the Board terminated the 2019 Authorization and concurrently authorized a program for the repurchase of up to $800,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a two-year period ending in January 2024 (the “2022 Authorization”). During fiscal year 2022, we repurchased 3,890 shares of our common stock for $446,042 under the 2022 Authorization. Stock-based compensation Non-qualified stock option awards and restricted stock awards are granted to key management members and directors of the Company. The grant date for these awards is used for the measurement date. Vesting would be accelerated in the event of retirement, disability, or death of a participant, or change in control of the Company, as defined in the individual stock option agreements. These awards are valued as of the measurement date and are amortized on a straight-line basis over the requisite vesting period for all awards, including awards with graded vesting. Stock for exercised stock options and for restricted stock awards is issued from treasury stock shares. 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 of directors (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 2,938 shares of Woodward’s common stock available for future grants as of September 30, 2022 In connection with Thomas A. Gendron’s retirement, Charles (“Chip”) Blankenship, Jr. was appointed as Chief Executive Officer and President of the Company effective May 9, 2022. Mr. Blankenship received a one-time grant of restricted stock units ("RSUs") on his employment start date with a target delivered value of $3,400,000, all of which is scheduled to vest on the third anniversary of the grant date, generally subject to his continued employment. He also received a non-qualified stock option grant on his employment start date with a targeted delivered value of $2,200,000, the exercise price of which was equal to the closing price of the Company’s stock on the Nasdaq Stock Market on the date of grant and which is scheduled to vest over four years at a rate of 25% per year subject to his continued employment. 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 four-year The fair value of options granted is estimated as of the grant date using the Black-Scholes-Merton option-valuation model using the assumptions in the following table. Woodward calculates the expected term, which represents the average period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant. Year Ended September 30, 2022 2021 2020 Weighted-average exercise price per share $ 115.30 $ 82.46 $ 90.52 Expected term (years) 6.6 - 8.7 6.5 - 8.7 6.4 - 8.7 Estimated volatility 33.8 % - 36.4 % 33.3 % - 36.2 % 25.7 % - 35.1 % Estimated dividend yield 0.6 % - 0.8 % 0.3 % - 0.6 % 0.4 % - 0.9 % Risk-free interest rate 1.1 % - 3.5 % 0.4 % - 1.0 % 0.4 % - 1.7 % The weighted average grant date fair value of options granted follows: Year Ended September 30, 2022 2021 2020 Weighted-average grant date fair value of options $ 41.78 $ 28.22 $ 25.41 The following is a summary of the activity for stock option awards during the fiscal year ended September 30, 2022: Number Weighted- Average Exercise Price Per Share Balance at September 30, 2021 5,339 $ 68.21 Options granted 514 115.30 Options exercised (468 ) 47.23 Options forfeited (44 ) 88.65 Options expired (2 ) 93.79 Balance at September 30, 2022 5,339 74.40 Exercise prices of stock options outstanding as of September 30, 2022 range from $33.64 to $104.77. Changes in non-vested stock options during the fiscal year ended September 30, 2022 were as follows: Number Weighted- Average Grant Date Fair Value Per Share Balance at September 30, 2021 2,063 $ 25.77 Options granted 514 41.78 Options vested (721 ) 26.25 Options forfeited (44 ) 29.53 Balance at September 30, 2022 1,812 30.03 Information about stock options that have vested, or are expected to vest, and are exercisable at September 30, 2022 was as follows: Number Weighted- Average Exercise Price Weighted- Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 5,339 $ 74.40 5.6 $ 64,895 Options vested and exercisable 3,528 65.83 4.4 58,726 Options vested and expected to vest 5,290 74.17 5.6 64,786 Other information follows: Year Ended September 30, 2022 2021 2020 Total fair value of stock options vested $ 18,945 $ 19,324 $ 17,423 Total intrinsic value of options exercised 32,709 63,667 50,059 Cash received from exercises of stock options 21,897 34,748 24,969 Excess tax benefit realized from exercise of stock options 6,472 12,364 9,399 Restricted Stock During fiscal year 2022, Woodward granted 54 restricted stock units (“RSUs”) under its long-term incentive program as part of recent recruiting activities. The RSUs granted under this program have a weighted average grant date fair value of $99.15 per unit and are generally scheduled to vest on the third or fourth anniversary of the respective grant dates, generally subject to recipients’ continued employment. Stock-based compensation expense Woodward recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Pursuant to the 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. Stock-based compensation expense recognized was as follows: Year Ended September 30, 2022 2021 2020 Employee stock-based compensation expense $ 20,109 $ 21,475 $ 22,903 At September 30, 2022 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 22. Commitments and contingencies Woodward enters into unconditional purchase obligation arrangements (i.e., issuance of purchase orders, obligations to transfer funds in the future for fixed or minimum quantities of goods or services at fixed or minimum prices, such as "take-or-pay" contracts) in the normal course of business to ensure that adequate levels of sourced product are available to Woodward. Future minimum unconditional purchase obligations are as follows: Year Ending September 30, 2023 $ 464,073 2024 29,887 2025 1,305 2026 2,156 2027 — Thereafter 662 Total $ 498,083 The U.S. Government, and other governments, may terminate any of Woodward’s government contracts (and, in general, subcontracts) at their convenience, as well as for default based on specified performance measurements. If any of Woodward’s government contracts were to be terminated for convenience, the Company generally would be entitled to receive payment for work completed and allowable termination or cancellation costs. If any of Woodward’s government contracts were to be terminated for Woodward’s default, the U.S. Government generally would pay only for the work accepted, and could require Woodward to pay the difference between the original contract price and the cost to re-procure the contract items, net of the work accepted from the original contract. The U.S. Government could also hold Woodward liable for damages resulting from the default. Woodward is currently involved in claims, pending or threatened litigation or other legal proceedings, investigations and/or regulatory proceedings arising in the normal course of business, including, among others, those relating to product liability claims, employment matters, worker’s compensation claims, contractual disputes, product warranty claims and alleged violations of various laws and regulations. Woodward accrues for known individual matters using estimates of the most likely amount of loss where it believes that it is probable the matter will result in a loss when ultimately resolved and such loss is reasonably estimable. Legal costs are expensed as incurred and are classified in “Selling, general and administrative expenses” on the Consolidated Statements of Earnings. Woodward is partially self-insured in the United States for healthcare and worker’s compensation up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of related claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities. While the outcome of pending claims, legal and regulatory proceedings, and investigations cannot be predicted with certainty, management believes that any liabilities that may result from these claims, proceedings and investigations will not have a material effect on Woodward’s liquidity, financial condition, or results of operations. In the event of a change in control of Woodward, as defined in change-in-control agreements with its current corporate officers, Woodward may be required to pay termination benefits to any such officer if such officer’s employment is terminated within two years following the change of control. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 23. Segment information Woodward serves the aerospace and industrial markets through its two reportable segments - Aerospace and Industrial. When appropriate, Woodward’s reportable segments are aggregations of Woodward’s operating segments. Woodward uses operating segment information internally to manage its business, including the assessment of operating segment performance and decisions for the allocation of resources between operating segments. The accounting policies of the reportable segments are the same as those of the Company. Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period. In connection with that assessment, Woodward generally excludes matters such as certain charges for restructuring, interest income and expense, certain gains and losses from asset dispositions, or other non-recurring and/or non-operationally related expenses. A summary of consolidated net sales and earnings by segment follows: Year Ended September 30, 2022 2021 2020 Segment external net sales: Aerospace $ 1,519,322 $ 1,404,117 $ 1,590,963 Industrial 863,468 841,715 904,702 Total consolidated net sales $ 2,382,790 $ 2,245,832 $ 2,495,665 Segment earnings: Aerospace $ 230,933 $ 234,356 $ 310,137 Industrial 82,788 108,672 100,321 Nonsegment expenses (81,092 ) (64,442 ) (94,530 ) Interest Expense, net (32,731 ) (32,787 ) (34,047 ) Consolidated earnings before income taxes $ 199,898 $ 245,799 $ 281,881 Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets, consolidated depreciation and amortization, and consolidated capital expenditures follows: Year Ended September 30, 2022 2021 2020 Segment assets: Aerospace $ 1,773,854 $ 1,698,833 $ 1,752,516 Industrial 1,380,446 1,453,423 1,529,411 Unallocated corporate property, plant and equipment, net 111,760 106,014 106,380 Other unallocated assets 540,386 832,734 515,029 Consolidated total assets $ 3,806,446 $ 4,091,004 $ 3,903,336 Segment depreciation and amortization: Aerospace $ 60,176 $ 62,075 $ 63,530 Industrial 50,584 56,885 57,444 Unallocated corporate amounts 9,868 10,564 10,184 Consolidated depreciation and amortization $ 120,628 $ 129,524 $ 131,158 Segment capital expenditures: Aerospace $ 23,253 $ 17,303 $ 26,148 Industrial 12,399 15,164 10,631 Unallocated corporate amounts 17,216 5,222 10,308 Consolidated capital expenditures $ 52,868 $ 37,689 $ 47,087 Sales to Raytheon Technologies were made by Woodward’s Aerospace segment and totaled approximately 11% of net sales in fiscal year 2022, 9% of net sales in fiscal years 2021 and 2020. Sales to GE were made by both of Woodward’s reportable segments and totaled approximately 11% of net sales in fiscal year 2022, 2021, and 2020. Accounts receivable from Raytheon Technologies totaled approximately 6% of accounts receivable at September 30, 2022 and 5% of accounts receivable at September 30, 2021. Accounts receivable from GE totaled approximately 10% U.S. Government related sales from Woodward’s reportable segments were as follows: Direct U.S. Government Sales Indirect U.S. Government Sales Total U.S. Government Related Sales Fiscal year ended September 30, 2022 Aerospace $ 93,266 $ 433,646 $ 526,912 Industrial 4,759 6,052 10,811 Total net external sales $ 98,025 $ 439,698 $ 537,723 Percentage of total net sales 4 % 19 % 23 % Fiscal year ended September 30, 2021 Aerospace $ 116,832 $ 526,118 $ 642,950 Industrial 7,732 2,442 10,174 Total net external sales $ 124,564 $ 528,560 $ 653,124 Percentage of total net sales 6 % 23 % 29 % Fiscal year ended September 30, 2020 Aerospace $ 149,416 $ 536,424 $ 685,840 Industrial 5,867 17,473 23,340 Total net external sales $ 155,283 $ 553,897 $ 709,180 Percentage of total net sales 6 % 22 % 28 % |
Operations and Summary of Sig_2
Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of Woodward, Inc. and its subsidiaries (collectively “Woodward” or “the Company”). Dollar amounts contained in these Consolidated Financial Statements are in thousands, except per share amounts. |
Nature of operations | Nature of operations Woodward is an independent designer, manufacturer, and service provider of energy control and optimization solutions. Woodward designs, produces and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in challenging environments. Woodward has significant production and assembly facilities primarily in the United States, Europe and Asia, and promotes its products and services through its worldwide locations. Woodward’s strategic focus is providing energy control and optimization solutions for the aerospace and industrial markets. The precise and efficient control of energy, including motion, fluid, combustion and electrical energy, is a growing requirement in the markets Woodward serves. Woodward’s customers look to it to optimize the efficiency, emissions and operation of power equipment in both commercial and defense operations. Woodward’s core technologies leverage well across its markets and customer applications, enabling it to develop and integrate cost-effective and state-of-the-art fuel, combustion, fluid, actuation and electronic systems. Woodward focuses its solutions and services primarily on serving original equipment manufacturers (“OEMs”) and equipment packagers, partnering with them to bring superior component and system solutions to their demanding applications. Woodward also provides aftermarket repair, maintenance, replacement and other service support for its installed products. Woodward’s components and integrated systems optimize performance of commercial aircraft, defense aircraft, military ground vehicles and other equipment, gas and steam turbines, industrial diesel, gas, biodiesel and dual-fuel reciprocating engines, and electrical power systems. Woodward’s innovative motion, fluid, combustion and electrical energy control systems help its customers offer more cost-effective, cleaner, and more reliable equipment. |
Global Business Conditions | Global Business Conditions We continue to monitor a variety of external issues impacting our business, including ongoing global supply chain and labor disruptions and rising labor and material inflation which together have led to a challenging industry-wide operating environment. In fiscal year 2022 we experienced strong demand for our products and services, although our financial performance during fiscal year 2022 was adversely impacted by these issues. We are actively implementing strategies to mitigate our supply chain risk to better position us for future success. We also continue to assess the environment and are taking appropriate price actions in response to rising costs; however, the timing of many price increases can be delayed due to various pre-existing contractual arrangements. We remain focused on operational excellence initiatives, talent development and innovation to help drive the company forward and create value for our stockholders. We are unable to predict the full extent to which these issues will continue to adversely impact our business, including our operational performance, results of operations, cash flows, financial position, and the achievement of our strategic objectives. Such uncertainty may affect our ability to accurately predict our future performance and financial results. We may take further actions to alter our business operations if we determine such actions are in the best interests of our stockholders, employees, customers and other stakeholders as appropriate. It is not currently clear what the potential effects of any such alterations or modifications may have on our business in future periods, including the effects on our customers, employees and prospects, or on our financial results. |
Principles of consolidation | Principles of consolidation: These Consolidated Financial Statements are prepared in accordance with U.S. GAAP and include the accounts of Woodward and its wholly and majority-owned subsidiaries. Transactions within and between these companies are eliminated. |
Use of estimates | Use of estimates: The preparation of the Consolidated Financial Statements requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, at the date of the financial statements and the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures. Significant estimates include allowances for uncollectible amounts, net realizable value of inventories, customer rebates earned, useful lives of property and identifiable intangible assets, the evaluation of impairments of property, identifiable intangible assets and goodwill, the provision for income tax and related valuation reserves, the valuation of assets and liabilities acquired in business combinations, assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans, the valuation of stock compensation instruments granted to employees, and contingencies. Actual results could differ from those estimates. |
Foreign currency exchange rates | Foreign currency exchange rates: The assets and liabilities of substantially all subsidiaries outside the United States are translated at fiscal year-end rates of exchange, and earnings and cash flow statements are translated at weighted-average rates of exchange. The exchange rate in effect at the time of the cash flow is used for significant or infrequent cash flows, such as payments for a business acquisition, for which the use of weighted-average rates of exchange would result in a substantially different cash flow. Translation adjustments are accumulated with other comprehensive (losses) earnings as a separate component of stockholders’ equity and are presented net of tax effects in the Consolidated Statements of Stockholders’ Equity. The effects of changes in foreign currency exchange rates on loans between consolidated subsidiaries that are considered permanent in nature are also accumulated with other comprehensive earnings, net of tax. The Company is exposed to market risks related to fluctuations in foreign currency exchange rates because some sales transactions, and certain assets and liabilities of its domestic and foreign subsidiaries, are denominated in foreign currencies. Selling, general, and administrative expenses include a net foreign currency gain of $1,450 in fiscal year 2022, a net foreign currency loss of $1,986 in fiscal year 2021, and a net foreign currency gain of $194 in fiscal year 2020. |
Revenue recognition | Revenue recognition: Revenue is recognized on contracts with customers for arrangements in which quantities and pricing are fixed and/or determinable and are generally based on customer purchase orders, often within the framework of a long-term supply arrangement with the customer. Woodward has determined that it is the principal in its sales transactions, as Woodward is primarily responsible for fulfilling the promised performance obligations, has discretion to establish the selling price, and generally assumes the inventory risk. Woodward recognizes revenue for performance obligations within a customer contract when control of the associated product or service is transferred to the customer. Some of Woodward’s contracts with customers contain a single performance obligation, while other contracts contain multiple performance obligations. Each product within a contract generally represents a separate performance obligation as Woodward does not provide significant installation and integration services, the products do not customize each other, and the products can function independently of each other. A contract's transaction price is allocated to each performance obligation and recognized as revenue when, or as, the customer obtains control of the associated product or service. When there are multiple performance obligations within a contract, Woodward generally uses the observable standalone sales price for each distinct product or service within the contract to allocate the transaction price to the distinct products or services. In instances when a standalone sales price for each product or service is not observable within the contract, Woodward allocates the transaction price to each performance obligation using an estimate of the standalone selling price for each product or service, which is generally based on incurred costs plus a reasonable margin, for each distinct product or service in the contract. When determining the transaction price of each contract, Woodward considers contractual consideration payable by the customer and variable consideration that may affect the total transaction price. Variable consideration, consisting of early payment discounts, rebates and other sources of price variability, are included in the estimated transaction price based on both customer-specific information as well as historical experience. |
Point in time and over time revenue recognition | Point in time and over time revenue recognition: Control of the products generally transfers to the customer at a point in time, as the customer does not control the products as they are produced. Performance obligations are satisfied and revenue is recognized over time if: (i) the customer receives the benefits as Woodward performs work, if the customer controls the asset as it is being enhanced, or if the product being produced for the customer has no alternative use to Woodward; and (ii) Woodward has an enforceable right to payment with a profit. For products being produced for the customer that have no alternative use to Woodward and Woodward has an enforceable right to payment with a profit, and where the products are substantially the same and have the same pattern of transfer to the customer, revenue is recognized as a series of distinct products. As Woodward satisfies manufacturing, repair and overhaul (“MRO”) performance obligations, revenue is recognized over time, as the customer, rather than Woodward, controls the asset being enhanced . When services are provided, revenue from those services is recognized over time because control is transferred continuously to customers as Woodward performs the work . For services that are not short-term in nature, MRO, and sales of products that have no alternative use to Woodward and an enforceable right to payment with a profit, Woodward uses an actual cost input measure to determine the extent of progress towards completion of the performance obligation. For these revenue streams, revenue is recognized over time as work is performed based on the relationship between actual costs incurred to-date for each contract and the total estimated costs for such contract at completion of the performance obligation (the cost-to-cost method). Woodward has concluded that this measure of progress best depicts the transfer of assets to the customer, because incurred costs are integral to Woodward’s completion of the performance obligation under the specific customer contract and correlate directly to the transfer of control to the customer. Contract costs include labor, material and overhead. Contract cost estimates are based on various assumptions to project the outcome of future events. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, Woodward recognizes provisions for estimated losses on uncompleted contracts in the period in which such losses are determined. In situations where the creditworthiness of a customer becomes in doubt, Woodward ceases to recognize the over-time revenue on the associated customer contract. Occasionally, Woodward sells maintenance or service arrangements, extended warranties, or other stand ready services. Woodward recognizes revenue from such arrangements as a series of performance obligations over the time period in which the services are available to the customer. |
Purchase Accounting | Purchase accounting : Business combinations are accounted for using the purchase method of accounting. Under this method, assets and liabilities, including intangible assets, are recorded at their fair values as of the acquisition date. Acquisition costs in excess of amounts assigned to assets acquired and liabilities assumed are recorded as goodwill. Transaction-related costs associated with business combinations are expensed as incurred. |
Material Rights and Costs to Fulfill a Contract | Material Rights and Costs to Fulfill a Contract : Customers sometimes pay consideration to Woodward for product engineering and development activities that do not result in the immediate transfer of distinct products or services to the customer. There is an implicit assumption that without the customer making such advance payments to Woodward, Woodward’s future sales of products or services to the customer would be at a higher selling price; therefore, such payments create a “material right” to the customer that effectively gives the customer an option to acquire future products or services, at a discount, that are dependent upon the product engineering and development. Material rights are recorded as contract liabilities and will be recognized when control of the related products or services are transferred to the customer. Woodward capitalizes costs of product engineering and development identified as material rights up to the amount of customer funding as costs to fulfill a contract because the costs incurred up to the amount of the customer funding commitment are recoverable. Due to the uncertainty of the product success and/or demand, fulfillment costs in excess of the customer funding are expensed as incurred. Woodward recognizes the deferred material rights as revenue based on a percentage of actual sales to total estimated lifetime sales of the related developed products as the customers exercise their option to acquire additional products or services at a discount. Woodward amortizes the capitalized costs to fulfill a contract as cost of goods sold proportionally to the recognition of the associated deferred material rights. Estimated total lifetime sales are reviewed at least annually and more frequently when circumstances warrant a modification to the previous estimate. Woodward does not capitalize incremental costs of obtaining a contract, as Woodward does not pay sales commissions or incur other incremental costs related to contracts with Woodward’s customers for arrangements in which quantities and pricing are fixed and/or determinable. |
Contract Liabilities | Contract liabilities: Advance payments and billings in excess of revenue recognized represent contract liabilities and are recorded as deferred revenues when customers remit contractual cash payments in advance of Woodward satisfying performance obligations under contractual arrangements, including those with performance obligations satisfied over time. Woodward generally receives advance payments from customers related to maintenance or service arrangements, extended warranties, or other stand ready services, which it recognizes over the performance period. Contract liabilities are satisfied when revenue is recognized and the performance obligation is satisfied. Advance payments and billings in excess of revenue recognized are included in deferred revenue, which is classified as current or noncurrent based on the timing of when Woodward expects to recognize revenue. |
Customer Payments | Customer payments : Woodward occasionally agrees to make payments to certain customers in order to participate in anticipated sales activity. Payments made to customers are accounted for as a reduction of revenue unless they are made in exchange for identifiable goods or services with fair values that can be reasonably estimated. Reductions in revenue associated with these customer payments are recognized immediately to the extent that the payments cannot be attributed to anticipated future sales, and are recognized in future periods to the extent that the payments relate to anticipated future sales. Such determinations are based on the facts and circumstances underlying each payment. |
Stock-based compensation | Stock-based compensation: Compensation cost relating to stock-based payment awards made to employees and directors is recognized in the financial statements using a fair value method. Non-qualified stock option awards and restricted stock awards are issued under Woodward’s stock-based compensation plans. The cost of such awards, measured at the grant date, is based on the estimated fair value of the award. Forfeitures are estimated at the time of each grant in order to estimate the portion of the award that will ultimately vest. The estimate is based on Woodward’s historical rates of forfeitures and is updated periodically. The portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods, which is generally the vesting period of the awards. |
Research and development costs | Research and development costs: Company funded expenditures related to new product development, and significant product enhancement and/or upgrade activities are expensed as incurred and are separately reported in the Consolidated Statements of Earnings |
Income taxes | Income taxes: Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of Woodward’s assets, liabilities, and certain unrecognized gains and losses recorded in accumulated other comprehensive (losses) earnings. Woodward provides for taxes that may be payable if undistributed earnings of overseas subsidiaries were to be remitted to the United States, except for those earnings that it considers to be indefinitely invested |
Cash equivalents | Cash equivalents: Highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. |
Accounts receivable | Accounts receivable: Almost all of Woodward’s sales are made on credit and result in accounts receivable, which are recorded at the amount invoiced and are generally not collateralized. In the normal course of business, not all accounts receivable are collected and, therefore, an allowance for uncollectible amounts is provided equal to the amount that Woodward believes ultimately will not be collected, either from credit risk or other adjustments to the original selling price or anticipated cash discounts. In establishing the amount of the allowance related to the credit risk of accounts receivable, customer-specific information is considered related to delinquent accounts, past loss experience, bankruptcy filings, deterioration in the customer’s operating results or financial position, current and forecasted economic conditions, and other relevant factors. Bad debt losses are deducted from the allowance, and the related accounts receivable balances are written off when the receivables are deemed uncollectible. Recoveries of accounts receivable previously written off are recognized when received. The allowance associated with anticipated other adjustments to the selling price or cash discounts is also established and is included in the allowance for uncollectible amounts. In establishing this amount, both customer-specific information as well as historical experience is considered. In coordination with its customers and when terms are considered favorable to Woodward, Woodward from time-to-time transfers ownership to collect amounts due to Woodward for outstanding accounts receivable to third parties in exchange for cash. When the transfer of accounts receivable meets the criteria of Financial Accounting Standards Board (“FASB”) ASC Topic 860-10, “Transfers and Servicing,” and are without recourse, it is recognized as a sale and the accounts receivable is derecognized. Unbilled receivables (contract assets) arise when the timing of billing differs from the timing of revenue recognized, such as when contract provisions require revenue to be recognized over time rather than at a point in time. Unbilled receivables primarily relate to performance obligations satisfied over time when the cost-to-cost method is utilized and the revenue recognized exceeds the amount billed to the customer as there is not yet a right to payment in accordance with contractual terms. Unbilled receivables are recorded as a contract asset when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the terms of the contract. Consistent with common business practice in China, Woodward’s Chinese subsidiaries accept bankers’ acceptance notes from Chinese customers in settlement of certain customer billed accounts receivable. Bankers’ acceptance notes are financial instruments issued by Chinese financial institutions as part of financing arrangements between the financial institution and a customer of the financial institution. Bankers’ acceptance notes represent a commitment by the issuing financial institution to pay a certain amount of money at a specified future maturity date to the legal owner of the bankers’ acceptance note as of the maturity date. The maturity date of bankers’ acceptance notes varies, but it is Woodward’s policy to only accept bankers’ acceptance notes with maturity dates no more than 180 days from the date of Woodward’s receipt of such draft. Woodward has elected to adopt the practical expedient to not adjust the promised amounts of consideration for the effects of a significant financing component at contract inception as the financing component associated with accepting bankers’ acceptance notes has a duration of less than one year. Woodward’s contracts with customers generally have no other financing components. For composition of accounts receivable, see Note 3, Revenue. |
Inventories | Inventories: Inventories are valued at the lower of cost or net realizable value, with cost being determined using methods that approximate a first-in, first-out basis. |
Short-term investments | Short-term investments: From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. Amounts with maturities of less than 365 days are classified as “Other current assets.” |
Property, plant and equipment | Property, plant, and equipment: Property, plant, and equipment are recorded at cost and are depreciated over the estimated useful lives of the assets. Assets are generally depreciated using the straight-line method. Assets are tested for recoverability whenever events or circumstances indicate the carrying value may not be recoverable. Estimated lives over which fixed assets are generally depreciated at September 30, 2022 were as follows: Land improvements 3 – 20 years Buildings and improvements 3 – 40 years Leasehold improvements 1 – 10 years Machinery and production equipment 3 – 20 years Computer equipment and software 1 – 10 years Office furniture and equipment 3 – 10 years Other 3 – 10 years Included in computer equipment and software are Woodward’s enterprise resource planning (“ERP”) systems, which have an estimated useful life of 15 years. All other computer equipment and software is generally depreciated over three years to five years. |
Leases | Leases: Right-of-use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the remaining fixed lease payments over the lease term. In determining the estimated present value of lease payments, Woodward discounts the fixed lease payments using the rate implicit in the agreement or, if the implicit rate is not known, using the incremental borrowing rate. Woodward’s incremental borrowing rate is based on the information available at the lease commencement date, with consideration given to Woodward’s recent debt issuances as well as publicly available data for instruments with similar characteristics. For operating leases, lease expense is recognized over the expected lease term and classified as a cost of goods sold or selling, general and administrative expense based on the nature of the underlying leased asset. For finance leases, the ROU asset is recognized over the shorter of the useful life of the asset, consistent with Woodward’s normal depreciation policy, or the lease term, and is classified as a cost of goods sold, selling, general and administrative expense, or research and development expense, based on the nature and use of the underlying leased asset. Certain of Woodward’s operating lease agreements include variable payments that are passed through by the landlord, such as insurance, taxes, and common area maintenance, payments based on the usage of the asset, and rental payments adjusted periodically for inflation. Pass-through charges, payments due to changes in usage of the asset, and payments due to changes in indexation are included within variable rent expense and are recognized in the period in which the variable obligation for the payments was incurred. Woodward is primarily a lessee in lease arrangements but has some embedded lessor arrangements. |
Goodwill | Goodwill: Woodward tests goodwill for impairment at the reporting unit level on an annual basis and more often if an event occurs or circumstances change that indicates the fair value of a reporting unit may be below its carrying amount. Based on the relevant U.S. GAAP authoritative guidance, Woodward aggregates components of a single operating segment into a reporting unit, if appropriate. The impairment test consists of comparing the implied fair value of each reporting unit with its carrying amount that includes goodwill. If the carrying amount of the reporting unit exceeds its implied fair value, Woodward compares the implied fair value of goodwill with the recorded carrying amount of goodwill. If the carrying |
Other intangibles | Other intangibles: Other intangibles are recognized apart from goodwill whenever an acquired intangible asset arises from contractual or other legal rights, or whenever it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged, either individually or in combination with a related contract, asset, or liability. Woodward amortizes the cost of other intangibles over their useful lives unless such lives are deemed indefinite. The cost of finite-lived other intangibles are amortized over their respective useful life using patterns that reflect the periods over which the economic benefits of the assets are expected to be realized. Amortization expense is allocated to cost of goods sold and selling, general, and administrative expenses based on the nature of the intangible asset. Finite-lived other intangible assets are reviewed for impairment whenever an event occurs or circumstances change indicating that the related carrying amount of the other intangible asset may not be recoverable. Impairment losses are recognized if the carrying amount of an intangible is both not recoverable and exceeds its fair value. Woodward has recorded no impairment charges related to its other intangibles as of September 30, 2022. Estimated lives over which intangible assets are amortized at September 30, 2022 were as follows: Customer relationships and contracts 11 – 30 years Intellectual property 15 – 17 years Process technology 10 – 30 years Other 5 – 5 years Woodward has one indefinitely lived intangible asset consisting of the Woodward L’Orange trade name. The Woodward L’Orange trade name intangible asset is tested for impairment on an annual basis and more often if an event occurs or circumstances change that indicate the fair value of the Woodward L’Orange intangible asset may be below its carrying amount. The impairment test consists of comparing the fair value of the Woodward L’Orange trade name intangible asset, determined using discounted cash flows, with its carrying amount. If the carrying amount of the Woodward L’Orange intangible asset exceeds its fair value, an impairment loss would be recognized to reduce the carrying amount to its fair value. Woodward has not recorded any impairment charges. |
Impairment of long-lived assets | Impairment of long-lived assets: Woodward reviews the carrying amount of its long-lived assets or asset groups to be used in operations whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, the Company would assess the recoverability of an asset group by determining if the carrying amount of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying amount of the asset group is not recoverable, the Company will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group’s carrying amount and its estimated fair value. |
Investments in marketable equity securities | Investment in marketable equity securities: Woodward holds marketable equity securities related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net.” The trading securities are included in “Other assets.” The associated obligation to provide benefits under the deferred compensation program is included in “Other liabilities.” |
Investments in unconsolidated subsidiaries | Investments in unconsolidated subsidiaries: Investments in, and operating results of, entities in which Woodward does not have a controlling financial interest or the ability to exercise significant influence over the operations are included in the financial statements using the cost method of accounting. Investments and operating results of entities in which Woodward does not have a controlling interest but does have the ability to exercise significant influence over operations are included in the financial statements using the equity method of accounting. |
Deferred compensation | Deferred compensation: The Company maintains a deferred compensation plan, or “rabbi trust,” as part of its overall compensation package for certain employees. Deferred compensation obligations will be settled either by delivery of a fixed number of shares of Woodward’s common stock (in accordance with certain eligible members’ irrevocable elections) or in cash. Woodward has contributed shares of its common stock into a trust established for the future settlement of deferred compensation obligations that are payable in shares of Woodward’s common stock. Common stock held by the trust is reflected in the Consolidated Balance Sheets as “Treasury stock held for deferred compensation” and the related deferred compensation obligation is reflected as a separate component of equity in amounts equal to the fair value of the common stock at the dates of contribution. These accounts are not adjusted for subsequent changes in the fair value of the common stock. Deferred compensation obligations that will be settled in cash are accounted for on an accrual basis in accordance with the terms of the underlying contract and are reflected in the Consolidated Balance Sheet as “Other liabilities.” |
Financial instruments | Financial instruments: The Company’s financial instruments include cash and cash equivalents, short-term investments, investments in the deferred compensation program, notes receivable from municipalities, investments in term deposits, cross-currency interest rate swaps and debt. Because of their short-term maturity, the carrying amount of cash and cash equivalents, and short-term debt approximate fair value. Financial assets and liabilities recorded at fair value in the Consolidated Balance Sheets are categorized based upon a fair value hierarchy established by U.S. GAAP, which prioritizes the inputs used to measure fair value into the following levels: Level 1: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. Level 2: Quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable and can be corroborated by observable market data. Level 3: Inputs reflect management’s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. Further information on the fair value of financial instruments can be found at Note 7, Financial instruments and fair value measurements |
Derivatives | Derivatives: The Company is exposed to various global market risks, including the effect of changes in interest rates, foreign currency exchange rates, changes in certain commodity prices and fluctuations in various producer indices. From time to time, Woodward enters into derivative instruments for risk management purposes only, including derivatives designated as accounting hedges and/or those utilized as economic hedges. Woodward uses interest rate related derivative instruments to manage its exposure to fluctuations of interest rates. Woodward does not enter into or issue derivatives for trading or speculative purposes. By using derivative and/or hedging instruments to manage its risk exposure, Woodward is subject, from time to time, to credit risk and market risk on those derivative instruments. Credit risk arises from the potential failure of the counterparty to perform under the terms of the derivative and/or hedging instrument. When the fair value of a derivative contract is positive, the counterparty owes Woodward, which creates credit risk for Woodward. Woodward mitigates this credit risk by entering into transactions only with counterparties that are believed to be creditworthy. Market risk arises from the potential adverse effects on the value of derivative and/or hedging instruments that result from a change in interest rates, commodity prices, or foreign currency exchange rates. Woodward minimizes this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. From time to time, in order to hedge against foreign currency exposure, Woodward designates certain non-derivative financial instrument loans as net investment hedges. Foreign exchange gains or losses on these loans are recognized in foreign currency translation adjustments within total comprehensive (losses) earnings. Also, to hedge against the foreign currency exposure attributable to non-functional currency denominated intercompany loans, Woodward has entered into derivative instruments in fair value hedging relationships and cash flow hedging relationships. Further information on net investment hedges and derivative instruments in fair value and cash flow hedging relationships, including the Company’s policy in accounting for these derivatives, can be found at Note 8 , Derivative instruments and hedging activities . |
Postretirement benefits | Postretirement benefits: The Company provides various benefits to certain current and former employees through defined benefit pension and postretirement plans. For financial reporting purposes, net periodic benefits expense and related obligations are calculated using a number of significant actuarial assumptions. Changes in net periodic expense and funding status may occur in the future due to changes in these assumptions. The funded status of defined pension and postretirement plans recognized in the statement of financial position is measured as the difference between the fair market value of the plan assets and the benefit obligation. For a defined benefit pension plan, the benefit obligation is the projected benefit obligation; for any other defined benefit postretirement plan, such as a retiree health care plan, the benefit obligation is the accumulated benefit obligation. Any over-funded status is recognized as an asset and any underfunded status is recognized as a liability. Projected benefit obligation is the actuarial present value as of the measurement date of all benefits attributed by the plan benefit formula to employee service rendered before the measurement date using assumptions as to future compensation levels if the plan benefit formula is based on those future compensation levels. The accumulated benefit obligation is the actuarial present value of benefits (whether vested or unvested) attributed by the plan benefit formula to employee service rendered before the measurement date and based on employee service and compensation, if applicable, prior to that date. The accumulated benefit obligation differs from the projected benefit obligation in that it includes no assumption about future compensation levels. |
Operations and Summary of Sig_3
Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Property, Plant and Equipment Useful Lives | Estimated lives over which fixed assets are generally depreciated at September 30, 2022 were as follows: Land improvements 3 – 20 years Buildings and improvements 3 – 40 years Leasehold improvements 1 – 10 years Machinery and production equipment 3 – 20 years Computer equipment and software 1 – 10 years Office furniture and equipment 3 – 10 years Other 3 – 10 years |
Schedule of Finite-Lived Intangible Assets Useful Lives | Estimated lives over which intangible assets are amortized at September 30, 2022 were as follows: Customer relationships and contracts 11 – 30 years Intellectual property 15 – 17 years Process technology 10 – 30 years Other 5 – 5 years |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Derived from Product Sales | Year Ended September 30, 2022 2021 2020 Manufactured products 84 % 86 % 86 % MRO 14 % 13 % 12 % Services 2 % 1 % 2 % |
Schedule of Revenue Recognition Time | The amount of revenue recognized as point in time or over time follows: For the Year Ended September 30, 2022 2021 2020 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Aerospace Industrial Consolidated Point in time $ 593,233 $ 509,737 $ 1,102,970 $ 481,422 $ 527,233 $ 1,008,655 $ 590,817 $ 592,157 $ 1,182,974 Over time 926,089 353,731 1,279,820 922,695 314,482 1,237,177 1,000,146 312,545 1,312,691 Total net sales $ 1,519,322 $ 863,468 $ 2,382,790 $ 1,404,117 $ 841,715 $ 2,245,832 $ 1,590,963 $ 904,702 $ 2,495,665 |
Summary of Amounts Recognized Related to Changes in Estimated Total Lifetime Sales for Material Rights and Costs to Fulfill Contracts With Customers | Amounts recognized related to changes in estimated total lifetime sales for material rights and costs to fulfill contracts with customers follows: Year Ended September 30, 2022 2021 2020 Revenue $ 1,514 $ 2,671 $ 6,784 Cost of goods sold 667 1,961 6,638 |
Summary of Amounts Recognized Related to Amortization of Costs to Fulfill Contracts and Contract Liabilities Not Related to Changes in Estimate | Amounts recognized related to amortization of costs to fulfill contracts and contract liabilities, which were not related to changes in estimate, follows: Year Ended September 30, 2022 2021 2020 Revenue $ 4,107 $ 4,455 $ 1,664 Cost of goods sold 3,077 3,466 1,241 |
Schedule of Accounts Receivable | Accounts receivable consisted of the following: September 30, 2022 September 30, 2021 Billed receivables Trade accounts receivable $ 359,364 $ 298,951 Other (Chinese financial institutions) 9,405 23,168 Total billed receivables 368,769 322,119 Current unbilled receivables (contract assets) 245,117 204,596 Total accounts receivable 613,886 526,715 Less: Allowance for uncollectible amounts (3,922 ) (3,664 ) Total accounts receivable, net $ 609,964 $ 523,051 |
Schedule of Uncollectible Amounts And Change in Expected Allowance for Credit Losses for Trade Accounts Receivable and Unbilled Receivables | The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following: Year Ended September 30, 2022 2021 2020 Balance, beginning $ 3,664 $ 8,359 $ 8,936 Charged to costs and expenses, or sales allowance 1,866 2,382 4,735 Deductions (1,587 ) (7,255 ) (5,342 ) Other (deductions)/additions 1 (21 ) 178 30 Balance, ending $ 3,922 $ 3,664 $ 8,359 (1) Includes effects of foreign exchange rate changes during the period. |
Schedule of Contract Liability | Contract liabilities consisted of the following: September 30, 2022 September 30, 2021 Current Noncurrent Current Noncurrent Deferred revenue from material rights from GE joint venture formation $ 5,754 $ 234,516 $ 4,771 $ 234,237 Deferred revenue from advanced invoicing and/or prepayments from customers 4,120 38 4,192 290 Liability related to customer supplied inventory 12,442 — 14,169 — Deferred revenue from material rights related to engineering and development funding 8,347 161,791 6,395 151,797 Net contract liabilities $ 30,663 $ 396,345 $ 29,527 $ 386,324 |
Schedule of Disaggregation of Revenue | Revenue by primary market for the Aerospace reportable segment was as follows: Year Ended September 30, 2022 2021 2020 Commercial OEM $ 499,438 $ 386,543 $ 434,306 Commercial aftermarket 420,881 306,547 399,843 Defense OEM 422,016 509,815 526,264 Defense aftermarket 176,987 201,212 230,550 Total Aerospace segment net sales $ 1,519,322 $ 1,404,117 $ 1,590,963 Revenue by primary market for the Industrial reportable segment was as follows: Year Ended September 30, 2022 2021 2020 Reciprocating engines $ 636,866 $ 639,946 $ 632,555 Industrial turbines 226,602 201,769 222,366 Renewables 1 — — 49,781 Total Industrial segment net sales $ 863,468 $ 841,715 $ 904,702 The customers who account for approximately 10% or more of net sales of each of Woodward’s reportable segments are as follows: For the Year Ended September 30, 2022 2021 Aerospace Raytheon Technologies, The Boeing Company, GE The Boeing Company, Raytheon Technologies, GE Industrial Rolls-Royce PLC, Wärtsilä, Caterpillar Rolls-Royce PLC, Weichai Westport, GE Net sales by geographic area, as determined based on the location of the customer, were as follows: Year Ended September 30, 2022 2021 2020 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Aerospace Industrial Consolidated United States $ 1,105,860 $ 205,740 $ 1,311,600 $ 1,103,373 $ 174,750 $ 1,278,123 $ 1,231,004 $ 195,450 $ 1,426,454 Germany 57,840 174,216 232,056 31,005 152,691 183,696 52,635 181,330 233,965 Europe, excluding Germany 128,719 234,795 363,514 95,984 195,957 291,941 122,938 214,033 336,971 China 49,407 86,972 136,379 35,286 178,983 214,269 38,359 171,526 209,885 Asia, excluding China 23,334 128,855 152,189 23,363 114,137 137,500 27,068 113,001 140,069 Other countries 154,162 32,890 187,052 115,106 25,197 140,303 118,959 29,362 148,321 Total net sales $ 1,519,322 $ 863,468 $ 2,382,790 $ 1,404,117 $ 841,715 $ 2,245,832 $ 1,590,963 $ 904,702 $ 2,495,665 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted | The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share: Year Ended September 30, 2022 2021 2020 Numerator: Net earnings $ 171,698 $ 208,649 $ 240,395 Denominator: Basic shares outstanding 61,517 63,287 62,267 Dilutive effect of stock options and restricted stock units 1,737 2,268 1,942 Diluted shares outstanding 63,254 65,555 64,209 Income per common share: Basic earnings per share $ 2.79 $ 3.30 $ 3.86 Diluted earnings per share $ 2.71 $ 3.18 $ 3.74 |
Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share | The following stock option grants were outstanding during the fiscal years ended September 30, 2022, 2021 and 2020, but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive. Year Ended September 30, 2022 2021 2020 Options 1,019 41 660 Weighted-average option price $ 110.71 $ 116.38 $ 104.45 |
Schedule of Treasury Stock Shares Held for Deferred Compensation Included in Basic and Diluted Shares Outstanding | The weighted-average shares of common stock outstanding for basic and diluted earnings per share included the weighted-average treasury stock shares held for deferred compensation obligations of the following: Year Ended September 30, 2022 2021 2020 Weighted-average treasury stock shares held for deferred compensation obligations 151 186 211 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lease-Related Assets and Liabilities | Lease-related assets and liabilities follows: Classification on the Consolidated Balance Sheets September 30, 2022 September 30, 2021 Assets: Operating lease assets Other assets $ 25,144 $ 19,370 Finance lease assets Property, plant and equipment, net 5,474 781 Total lease assets 30,618 20,151 Current liabilities: Operating lease liabilities Accrued liabilities 4,587 5,260 Finance lease liabilities Current portion of long-term debt 856 728 Noncurrent liabilities: Operating lease liabilities Other liabilities 21,443 14,770 Finance lease liabilities Long-term debt, less current portion 4,405 475 Total lease liabilities $ 31,291 $ 21,233 |
Supplemental Lease-Related Information | Supplemental lease-related information follows: September 30, 2022 September 30, 2021 Weighted average remaining lease term Operating leases 8.3 years 4.3 years Finance leases 9.7 years 1.7 years Weighted average discount rate Operating leases 3.6 % 3.2 % Finance leases 3.4 % 2.8 % |
Lease-Related Expenses | Lease-related expenses were as follows: Year Ended September 30, 2022 2021 2020 Operating lease expense $ 6,335 $ 6,559 $ 6,164 Amortization of financing lease assets 454 425 476 Interest on financing lease liabilities 51 58 87 Variable lease expense 929 1,495 1,101 Short-term lease expense 190 283 466 Sublease income 1 (192 ) (680 ) (697 ) Total lease expense $ 7,767 $ 8,140 $ 7,597 (1) Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois. During fiscal year 2022, these subleases were terminated. |
Lease-Related Supplemental Cash Flow Information | Lease-related supplemental cash flow information was as follows: Year Ended September 30, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 5,303 $ 5,707 $ 5,622 Operating cash flows for finance leases 51 58 87 Financing cash flows for finance leases 796 1,639 1,590 Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases 14,678 6,871 6,501 Finance leases 4,046 35 1,244 |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows: Year Ending September 30: Operating Leases Finance Leases 2023 $ 5,383 $ 1,032 2024 4,695 1,002 2025 3,768 870 2026 3,156 870 2027 2,592 868 Thereafter 10,959 1,919 Total lease payments 30,553 6,561 Less: imputed interest (4,523 ) (1,300 ) Total lease obligations $ 26,030 $ 5,261 |
Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements | The carrying amount of property, plant and equipment September 30, 2022 September 30, 2021 Property, plant and equipment leased to others through embedded leasing arrangements $ 44,912 $ 93,732 Less accumulated depreciation (25,508 ) (35,733 ) Property, plant and equipment leased to others through embedded leasing arrangements, net $ 19,404 $ 57,999 |
Joint Venture (Tables)
Joint Venture (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Unamortized Deferred Revenue from JV | Unamortized deferred revenue from material rights in connection with the JV formation included: September 30, 2022 September 30, 2021 Accrued liabilities $ 5,754 $ 4,771 Other liabilities 234,516 234,237 |
Other Income Related JV | Other income related to Woodward’s equity interest in the earnings of the JV was as follows: For the Year Ended September 30, 2022 2021 2020 Other income $ 18,193 $ 11,366 $ 15,580 |
Cash Distribution from JV | Cash distributions to Woodward from the JV, recognized in Net cash provided by operating activities on the Consolidated Statements of Cash Flows, from the JV include: Year Ended September 30, 2022 2021 2020 Cash distributions $ 17,000 $ 13,500 $ 14,000 |
Net Sales to the JV | Net sales to the JV were as follows: For the Year Ended September 30, 2022 2021 2020 Net sales 1 $ 28,100 $ 35,957 $ 48,222 |
Accounts Receivable, Accounts Payable, and Other Assets Related to JV | The Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows: September 30, 2022 September 30, 2021 Accounts receivable $ 4,172 $ 3,639 Accounts payable 4,069 2,823 Other assets 8,181 6,988 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | The table below presents information about Woodward’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value. At September 30, 2022 At September 30, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Investments in term deposits with foreign banks $ 37,605 — — $ 37,605 $ 13,187 — — $ 13,187 Equity securities 22,800 — — 22,800 29,714 — — 29,714 Cross currency interest rate swaps — 38,168 — 38,168 — — — — Total financial assets $ 60,405 $ 38,168 $ — $ 98,573 $ 42,901 $ — $ — $ 42,901 Financial liabilities: Cross currency interest rate swaps $ — $ — $ — $ — $ — $ 50,185 $ — $ 50,185 Total financial liabilities $ — $ — $ — $ — $ — $ 50,185 $ — $ 50,185 |
Estimated Fair Values of Financial Instruments | The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Consolidated Balance Sheets were as follows At September 30, 2022 At September 30, 2021 Fair Value Hierarchy Level Estimated Fair Value Carrying Cost Estimated Fair Value Carrying Cost Assets: Notes receivable from municipalities 2 $ 9,010 $ 8,992 $ 11,413 $ 10,193 Note receivable from sale of disposal group 2 — — 6,288 6,061 Investments in short-term time deposits 2 8,026 7,893 11,587 11,580 Liabilities: Long-term debt 2 $ 646,696 $ 712,054 $ 812,866 $ 736,706 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments And Hedges [Abstract] | |
Impact of Derivative Instruments on Earnings | The following table discloses the amount of (income) expense recognized in earnings on derivative instruments designated as qualifying hedging instruments: Year Ended September 30, Derivatives in: Location 2022 2021 2020 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ (2,844 ) $ 23 $ 4,592 Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses (66,036 ) (3,725 ) (3,190 ) Treasury lock agreement designated as cash flow hedge Interest expense — — (72 ) $ (68,880 ) $ (3,702 ) $ 1,330 The following table discloses the amount of (gain) loss recognized in accumulated OCI on derivative instruments designated as qualifying hedging instruments: Year Ended September 30, Derivatives in: Location 2022 2021 2020 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ (2,854 ) $ 60 $ 4,832 Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses (86,194 ) 1,612 13,430 $ (89,048 ) $ 1,672 $ 18,262 The following table discloses the amount of (gain) loss reclassified in accumulated OCI on derivative instruments designated as qualifying hedging instruments: Year Ended September 30, Derivatives in: Location 2022 2021 2020 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ (2,844 ) $ 23 $ 5,396 Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses (66,036 ) (3,725 ) (3,190 ) Treasury lock agreement designated as cash flow hedge Interest expense — — (72 ) $ (68,880 ) $ (3,702 ) $ 2,134 |
Supplemental Statement of Cas_2
Supplemental Statement of Cash Flows Information (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Statement of Cash Flows Information | Year Ended September 30, 2022 2021 2020 Interest paid, net of amounts capitalized $ 27,435 $ 27,574 $ 27,148 Income taxes paid 29,560 38,949 94,088 Income tax refunds received 7,481 14,044 17,653 Non-cash activities: Purchases of property, plant and equipment on account 6,452 7,771 3,076 Impact of the adoption of ASC 842 — — 255 Common shares issued from treasury to settle benefit obligations 17,132 14,900 14,748 Purchases of treasury stock on account — 12,516 — |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Acquisitions And Divestitures [Abstract] | |
Schedule of Purchase Price Consideration | The purchase price of PM Control, prepared consistent with the required ASC 805 framework, is allocated as follows: Cash paid to Sellers $ 22,890 Less acquired cash and restricted cash (1,341 ) Plus settlement of pre-existing relationships 750 Total purchase price $ 22,299 |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes, as of August 31, 2022, the estimated fair values of the assets acquired and liabilities assumed at the PM Closing. Accounts receivable $ 4,334 Inventories 2,464 Other current assets 386 Property, plant, and equipment 2,488 Goodwill 8,526 Intangible assets 9,916 Total assets acquired 28,114 Other current liabilities (2,688 ) Deferred income tax liabilities (1,842 ) Other noncurrent liabilities (1,285 ) Total liabilities assumed (5,815 ) Net assets acquired $ 22,299 |
Schedule of Finite-Lived Intangible Assets Acquired | A summary of the intangible assets acquired, weighted-average useful lives, and amortization methods follows: Estimated Amounts Weighted- Average Useful Life Amortization Method Intangible assets with finite lives: Customer relationships and contracts $ 8,332 11 years Straight-line Trade name 1,584 5 years Straight-line Total $ 9,916 |
Carrying Value of the Assets and Liabilities Sold | The transactions consummating the sale of the disposal group were completed on April 30, 2020. The carrying value of the assets and liabilities sold were as follows: June 30, 2020 Assets: Accounts receivable $ 17,637 Inventories 441 Other current assets 796 Other assets 51 Total assets 18,925 Liabilities: Accounts payable 7,633 Accrued liabilities 2,998 Other liabilities 450 Total liabilities $ 11,081 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Inventory Net [Abstract] | |
Schedule of Inventories | September 30, 2022 September 30, 2021 Raw materials $ 126,264 $ 107,412 Work in progress 123,005 95,846 Component parts (1) 329,962 260,244 Finished goods 70,019 63,109 Customer supplied inventory 12,442 14,169 On-hand inventory for which control has transferred to the customer (147,405 ) (120,809 ) $ 514,287 $ 419,971 (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) | 12 Months Ended |
Sep. 30, 2022 | |
Property Plant And Equipment Net [Abstract] | |
Schedule of Property Plant and Equipment, Net | September 30, 2022 September 30, 2021 Land and land improvements $ 84,057 $ 86,051 Buildings and building improvements 555,387 553,693 Leasehold improvements 19,392 19,159 Machinery and production equipment 779,514 795,128 Computer equipment and software 122,670 124,444 Office furniture and equipment 39,749 39,987 Other 20,162 20,012 Construction in progress 58,789 38,317 1,679,720 1,676,791 Less accumulated depreciation (769,248 ) (726,222 ) Property, plant, and equipment, net $ 910,472 $ 950,569 |
Schedule of Depreciation Expense | For the fiscal years ended September 30, 2022 Year Ended September 30, 2022 2021 2020 Depreciation expense $ 83,019 $ 87,631 $ 91,700 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | September 30, 2021 Additions Effects of Foreign Currency Translation September 30, 2022 Aerospace $ 455,423 $ — $ — $ 455,423 Industrial 349,910 8,526 (41,300 ) 317,136 Consolidated $ 805,333 $ 8,526 $ (41,300 ) $ 772,559 September 30, 2020 Additions Effects of Foreign Currency Translation September 30, 2021 Aerospace $ 455,423 $ — $ — $ 455,423 Industrial 352,829 — (2,919 ) 349,910 Consolidated $ 808,252 $ — $ (2,919 ) $ 805,333 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Schedule of Finite-lived and Indefinite-lived Intangible Assets by Major Class | September 30, 2022 September 30, 2021 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 $ (223,565 ) $ 58,118 $ 281,683 $ (210,380 ) $ 71,303 Industrial 352,917 (66,812 ) 286,105 404,179 (56,515 ) 347,664 Total $ 634,600 $ (290,377 ) $ 344,223 $ 685,862 $ (266,895 ) $ 418,967 Intellectual property: Aerospace $ — $ — $ — $ — $ — $ — Industrial 12,361 (12,361 ) — 15,806 (15,806 ) — Total $ 12,361 $ (12,361 ) $ — $ 15,806 $ (15,806 ) $ — Process technology: Aerospace $ 76,370 $ (69,471 ) $ 6,899 $ 76,370 $ (67,177 ) $ 9,193 Industrial 78,524 (27,464 ) 51,060 90,008 (26,124 ) 63,884 Total $ 154,894 $ (96,935 ) $ 57,959 $ 166,378 $ (93,301 ) $ 73,077 Other intangibles: Aerospace $ — $ — $ — $ — $ — $ — Industrial 1,560 — 1,560 — — — Total $ 1,560 $ — $ 1,560 $ — $ — $ — Intangible asset with indefinite life: Trade name: Aerospace $ — $ — $ — $ — $ — $ — Industrial 56,838 — 56,838 67,245 — 67,245 Total $ 56,838 $ — $ 56,838 $ 67,245 $ — $ 67,245 Total intangibles: Aerospace $ 358,053 $ (293,036 ) $ 65,017 $ 358,053 $ (277,557 ) $ 80,496 Industrial 502,200 (106,637 ) 395,563 577,238 (98,445 ) 478,793 Consolidated Total $ 860,253 $ (399,673 ) $ 460,580 $ 935,291 $ (376,002 ) $ 559,289 |
Schedule of Finite-Lived Intangible Assets Amortization Expense | Woodward recorded amortization expense associated with intangibles of the following: Year Ended September 30, 2022 2021 2020 Amortization expense $ 37,609 $ 41,893 $ 39,458 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization expense associated with intangibles is expected to be: Year Ending September 30: 2023 $ 35,885 2024 32,014 2025 26,852 2026 26,816 2027 26,750 Thereafter 255,425 $ 403,742 |
Credit Facilities, Short-term_2
Credit Facilities, Short-term Borrowings and Long-term Debt (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Availability Under Various Short-term Credit Facilities | As of September 30, 2022 Total availability Outstanding letters of credit and guarantees Outstanding borrowings Remaining availability Revolving credit facility $ 1,000,000 $ (9,694 ) $ (66,800 ) $ 923,506 Foreign lines of credit and overdraft facilities 27,266 — — 27,266 Foreign performance guarantee facilities 418 (196 ) — 222 $ 1,027,684 $ (9,890 ) $ (66,800 ) $ 950,994 |
Schedule of Long-term Debt | September 30, 2022 September 30, 2021 Series H notes – 4.03%, due November 15, 2023; unsecured $ 25,000 $ 25,000 Series I notes – 4.18%, due November 15, 2025; unsecured 25,000 25,000 Series K notes – 4.03%, due November 15, 2023; unsecured 50,000 50,000 Series L notes – 4.18%, due November 15, 2025; unsecured 50,000 50,000 Series M notes – 1.12% due September 23, 2026; unsecured 39,198 46,376 Series N notes – 1.31% due September 23, 2028; unsecured 75,457 89,273 Series O notes – 1.57% due September 23, 2031; unsecured 42,138 49,854 Series P notes – 4.27% due May 30, 2025; unsecured 85,000 85,000 Series Q notes – 4.35% due May 30, 2027; unsecured 85,000 85,000 Series R notes – 4.41% due May 30, 2029; unsecured 75,000 75,000 Series S notes – 4.46% due May 30, 2030; unsecured 75,000 75,000 Series T notes – 4.61% due May 30, 2033; unsecured 80,000 80,000 Finance leases (Note 5) 5,261 1,203 Unamortized debt issuance costs (1,438 ) (1,856 ) Total long-term debt 710,616 734,850 Less: Current portion of long-term debt 856 728 Long-term debt, less current portion $ 709,760 $ 734,122 |
Schedule of Future Principal Payments of Long-term Debt | Required future principal payments of the Notes as of September 30, 2022 Year Ending September 30: 2023 $ — 2024 75,000 2025 85,000 2026 114,198 2027 85,000 Thereafter 347,595 $ 706,793 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities [Line Items] | |
Accrued Liabilities | September 30, 2022 September 30, 2021 Salaries and other member benefits $ 75,665 $ 54,497 Product warranties and related liabilities ( 1 ) 40,042 17,481 Interest payable 13,481 14,822 Accrued retirement benefits 2,779 2,825 Net current contract liabilities (Note 3) 30,663 29,527 Current portion of accrued restructuring charges ( 2 ) 1,083 4,495 Taxes, other than income 21,159 19,453 Purchase of treasury stock in transit — 12,516 Other 21,411 27,523 $ 206,283 $ 183,139 (1) In fiscal year 2022, product warranties and related liabilities include estimates related to product liabilities expected to be fully recoverable from insurance. (2) In fiscal year 2021, other liabilities included $513 of accrued restructuring charges. |
Changes in Accrued Product Warranties and Related Liabilities | Changes in accrued product warranties and related liabilities were as follows: Year Ended September 30, 2022 2021 2020 Beginning of period $ 17,481 $ 18,972 $ 27,309 Additions, net of recoveries 29,827 1,164 8,687 Reductions for settlement (6,937 ) (2,718 ) (17,422 ) Foreign currency exchange rate changes (329 ) 63 398 End of period $ 40,042 $ 17,481 $ 18,972 |
Employee Severance [Member] | |
Accrued Liabilities [Line Items] | |
Loss Reserve & Restructuring Reserve Activity | The summary of activity in accrued restructuring charges during the fiscal years ended September 30, 2022 Period Activity Balances as of September 30, 2021 Charges Payments Foreign currency exchange rate changes Non-cash activity Balances as of September 30, 2022 Workforce management costs associated with: Hydraulics Systems Realignment $ 3,758 $ — $ (505 ) $ — $ (3,253 ) $ — Engine Systems Realignment 1,250 — — — (1,250 ) — Aerospace — 139 — — — 139 Industrial — 944 — — — 944 Total $ 5,008 $ 1,083 $ (505 ) $ — $ (4,503 ) $ 1,083 Period Activity Balances as of September 30, 2020 Charges Payments Foreign currency exchange rate changes Non-cash activity Balances as of September 30, 2021 Workforce management costs associated with: Hydraulics Systems Realignment $ — $ 3,758 $ — $ — $ — $ 3,758 Engine Systems Realignment — 1,250 — — — 1,250 COVID-19 pandemic 3,395 — (2,409 ) 180 (1,166 ) — Total $ 3,395 $ 5,008 $ (2,409 ) $ 180 $ (1,166 ) $ 5,008 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Noncurrent [Abstract] | |
Schedule of Other Liabilities | September 30, 2022 September 30, 2021 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 70,168 $ 107,074 Total unrecognized tax benefits 9,757 13,412 Noncurrent income taxes payable 14,329 16,257 Deferred economic incentives (1) 7,029 8,173 Cross-currency swap derivative liability — 50,185 Noncurrent operating lease liabilities 21,443 14,770 Net noncurrent contract liabilities 396,345 386,324 Other 10,185 21,713 $ 529,256 $ 617,908 (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) | 12 Months Ended |
Sep. 30, 2022 | |
Nonoperating Income Expense [Abstract] | |
Schedule of Other (Income) Expense, Net | Year Ended September 30, 2022 2021 2020 Equity interest in the earnings of the JV (Note 6) $ (18,193 ) $ (11,366 ) $ (15,580 ) Net gain on sales of assets and businesses (1) (1,775 ) (4,452 ) (23,598 ) Rent income (672 ) (1,355 ) (1,403 ) Net loss (gain) on investments in deferred compensation program 6,295 (4,929 ) (3,376 ) Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense (11,572 ) (14,127 ) (11,809 ) Other (774 ) (264 ) (400 ) $ (26,691 ) $ (36,493 ) $ (56,166 ) (1) Included in net gain on sale of assets and businesses for the fiscal year ended September 30, 2020 was the pre-tax gain on sale of Duarte real property in the amount of $22,323 and the pre-tax gain on sale of the Loveland campus of $2,330 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | Income taxes consisted of the following: Year Ended September 30, 2022 2021 2020 Current: Federal $ 21,869 $ 15,109 $ 15,976 State 2,310 853 1,383 Foreign 27,577 34,354 22,588 Deferred: Federal (13,216 ) (8,369 ) 10,784 State (8,623 ) (2,658 ) (547 ) Foreign (1,717 ) (2,139 ) (8,698 ) $ 28,200 $ 37,150 $ 41,486 |
Earnings Before Income Taxes by Geographical Area | Earnings before income taxes by geographical area consisted of the following: Year Ended September 30, 2022 2021 2020 United States $ 99,427 $ 136,280 $ 180,753 Other countries 100,471 109,519 101,128 $ 199,898 $ 245,799 $ 281,881 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred income taxes presented in the Consolidated Balance Sheets are related to the following: September 30, 2022 September 30, 2021 Deferred tax assets: Defined benefit plans, other postretirement $ 4,144 $ 5,364 Foreign net operating loss carryforwards 3,449 2,110 Inventory 57,102 51,011 Stock-based and other compensation 42,428 36,343 Deferred revenue net of unbilled receivables 49,491 46,002 Other reserves 8,017 10,619 Tax credits and incentives 25,623 22,756 Lease obligations 7,150 5,818 Other 3,402 7,936 Valuation allowance (2,537 ) (4,138 ) Total deferred tax assets, net of valuation allowance 198,269 183,821 Deferred tax liabilities: Goodwill and intangibles - net (187,988 ) (210,911 ) Property, plant and equipment (100,215 ) (105,724 ) Right of use assets (7,013 ) (5,497 ) Defined benefit plans, pension (3,969 ) (2,837 ) Other (2,832 ) (2,722 ) Total deferred tax liabilities (302,017 ) (327,691 ) Net deferred tax liabilities $ (103,748 ) $ (143,870 ) |
Reconciliation of U.S. Statutory Tax Rate to Effective Tax Rate | The following is a reconciliation of the U.S. Federal statutory tax 21% in the fiscal years ended September 30, 2022, September 30, 2021 and September 30, 2020 to Woodward’s effective income tax rate: Year Ending September 30, 2022 2021 2020 Percent of pretax earnings Statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit (2.5 ) (0.5 ) 0.3 Taxes on international activities 0.8 (0.1 ) (2.1 ) Research credit (4.5 ) (3.1 ) (3.6 ) Net excess income tax benefit from stock-based compensation (2.5 ) (4.2 ) (2.8 ) Adjustments of prior period tax items — 0.4 1.0 Compensation and benefits 0.3 0.5 0.4 Other items, net 1.5 1.1 0.5 Effective tax rate 14.1 % 15.1 % 14.7 % |
Reconciliation of the Beginning and Ending Amounts of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows: Year Ending September 30, 2022 2021 2020 Beginning balance $ 15,199 $ 9,851 $ 10,305 Additions to current year tax positions 1,783 2,289 1,890 Reductions to prior year tax positions (963 ) — (2,415 ) Additions to prior year tax positions 112 3,166 71 Lapse of applicable statute of limitations (4,193 ) (107 ) — Ending balance $ 11,938 $ 15,199 $ 9,851 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Amount of Expense Associated with Defined Contribution Plans | The amount of expense associated with defined contribution plans was as follows: Year Ended September 30, 2022 2021 2020 Company costs $ 40,898 $ 33,717 $ 33,769 |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Periodic Benefit Costs | Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statement of Earnings: Year Ended September 30, United States Other Countries Total 2022 2021 2020 2022 2021 2020 2022 2021 2020 Service cost $ 1,554 $ 1,729 $ 1,659 $ 2,339 $ 2,922 $ 2,865 $ 3,893 $ 4,651 $ 4,524 Interest cost 5,281 4,957 5,590 1,612 1,361 1,278 6,893 6,318 6,868 Expected return on plan assets (10,853 ) (14,144 ) (12,346 ) (2,434 ) (2,482 ) (2,827 ) (13,287 ) (16,626 ) (15,173 ) Amortization of: Net losses 259 541 1,430 555 931 1,046 814 1,472 2,476 Net prior service cost 981 969 936 23 25 23 1,004 994 959 Net periodic (benefit) cost $ (2,778 ) $ (5,948 ) $ (2,731 ) $ 2,095 $ 2,757 $ 2,385 $ (683 ) $ (3,191 ) $ (346 ) |
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following tables provide a reconciliation of the changes in the projected benefit obligation and fair value of assets for the defined benefit pension plans: At or for the Year Ended September 30, United States Other Countries Total 2022 2021 2022 2021 2022 2021 Changes in projected benefit obligation: Projected benefit obligation at beginning of year $ 177,346 $ 184,077 $ 122,018 $ 123,546 $ 299,364 $ 307,623 Plan amendment — 611 — — — 611 Service cost 1,554 1,729 2,339 2,922 3,893 4,651 Interest cost 5,281 4,957 1,612 1,361 6,893 6,318 Net actuarial losses (gains) (43,639 ) (6,496 ) (40,968 ) (3,459 ) (84,607 ) (9,955 ) Contribution by participants — — 10 10 10 10 Benefits paid (8,098 ) (7,532 ) (3,487 ) (3,782 ) (11,585 ) (11,314 ) Foreign currency exchange rate changes — — (16,047 ) 1,420 (16,047 ) 1,420 Projected benefit obligation at end of year $ 132,444 $ 177,346 $ 65,477 $ 122,018 $ 197,921 $ 299,364 Changes in fair value of plan assets: Fair value of plan assets at beginning of year $ 221,263 $ 201,555 $ 69,844 $ 65,154 $ 291,107 $ 266,709 Actual return on plan assets (58,684 ) 27,240 (9,822 ) 4,675 (68,506 ) 31,915 Contributions by the Company — — 2,370 2,185 2,370 2,185 Contributions by plan participants — — 10 10 10 10 Benefits paid (8,098 ) (7,532 ) (3,487 ) (3,782 ) (11,585 ) (11,314 ) Foreign currency exchange rate changes — — (11,336 ) 1,602 (11,336 ) 1,602 Fair value of plan assets at end of year $ 154,481 $ 221,263 $ 47,579 $ 69,844 $ 202,060 $ 291,107 Net over/(under) funded status at end of year $ 22,037 $ 43,917 $ (17,898 ) $ (52,174 ) $ 4,139 $ (8,257 ) |
Schedule of Accumulated Benefit Obligations In Excess of and Less Than Fair Value of Plan Assets | Plans with accumulated benefit obligation in excess of plan assets Plans with accumulated benefit obligation less than plan assets At September 30, At September 30, 2022 2021 2022 2021 Projected benefit obligation $ (48,371 ) $ (112,302 ) $ (149,550 ) $ (187,062 ) Accumulated benefit obligation (48,354 ) (111,151 ) (148,571 ) (186,245 ) Fair value of plan assets 18,459 57,945 183,601 233,161 |
Schedule of Amounts Recognized in Balance Sheet and Other Comprehensive Income (Loss) | The following tables provide the amounts recognized in the statement of financial position and accumulated other comprehensive losses for the defined benefit pension plans: Year Ended September 30, United States Other Countries Total 2022 2021 2022 2021 2022 2021 Amounts recognized in statement of financial position consist of: Other non-current assets $ 24,159 $ 43,917 $ 9,892 $ 2,182 $ 34,051 $ 46,099 Accrued liabilities — — (976 ) (1,017 ) (976 ) (1,017 ) Other non-current liabilities (2,122 ) — (26,814 ) (53,339 ) (28,936 ) (53,339 ) Net over/(under) funded status at end of year $ 22,037 $ 43,917 $ (17,898 ) $ (52,174 ) $ 4,139 $ (8,257 ) Amounts recognized in accumulated other comprehensive income consist of: Unrecognized net prior service cost $ 3,475 $ 4,455 $ 462 $ 584 $ 3,937 $ 5,039 Unrecognized net losses (gains) 14,822 (10,816 ) (5,459 ) 24,860 9,363 14,044 Total amounts recognized 18,297 (6,361 ) (4,997 ) 25,444 13,300 19,083 Deferred taxes (7,801 ) (1,691 ) (697 ) (7,785 ) (8,498 ) (9,476 ) Amounts recognized in accumulated other comprehensive income $ 10,496 $ (8,052 ) $ (5,694 ) $ 17,659 $ 4,802 $ 9,607 |
Schedule of Changes in Plan Assets and Benefit Obligations Recorded in Other Comprehensive Income (Loss) | The following table reconciles the changes in accumulated other comprehensive losses for the defined benefit pension plans: Year Ended September 30, United States Other Countries Total 2022 2021 2022 2021 2022 2021 Accumulated other comprehensive losses at beginning of year $ (6,361 ) $ 14,131 $ 25,444 $ 31,377 $ 19,083 $ 45,508 Net loss (gain) 25,898 (19,593 ) (28,712 ) (5,832 ) (2,814 ) (25,425 ) Prior service cost due to plan amendment — 611 — — — 611 Amortization of: Net losses (259 ) (541 ) (555 ) (931 ) (814 ) (1,472 ) Prior service cost (981 ) (969 ) (23 ) (25 ) (1,004 ) (994 ) Foreign currency exchange rate changes — — (1,151 ) 855 (1,151 ) 855 Accumulated other comprehensive losses at end of year $ 18,297 $ (6,361 ) $ (4,997 ) $ 25,444 $ 13,300 $ 19,083 |
Schedule of Expected Benefit Payments | Pension benefit payments are made from the assets of the pension plans. The German pension plans are unfunded; therefore, benefit payments are made from Company contributions into these plans as required to meet the payment obligations. Using foreign exchange rates as of September 30, 2022 and expected future service assumptions, it is anticipated that the future benefit payments will be as follows: Year Ending September 30, United States Other Countries Total 2023 $ 8,839 $ 3,184 $ 12,023 2024 9,310 3,083 12,393 2025 9,673 3,060 12,733 2026 9,967 3,069 13,036 2027 10,235 3,180 13,415 2028 – 2032 52,807 19,239 72,046 |
Schedule of Allocation of Plan Assets, Actual and Target Allocations | The asset allocations are monitored and rebalanced regularly by investment managers assigned to the individual pension plans. The actual allocations of pension plan assets and target allocation ranges by asset class, are as follows: At September 30, 2022 2021 Percentage of Plan Assets Target Allocation Ranges Percentage of Plan Assets Target Allocation Ranges United States: Asset Class Equity Securities 29.5% 2.4% — 51.2% 30.7% 2.5% — 51.2% Debt Securities 69.0% 58.8% — 87.6% 67.7% 58.8% — 87.5% Other 1.5% 0.0% 1.6% 0.0% 100.0% 100.0% United Kingdom: Asset Class Equity Securities 46.2% 50.0% — 90.0% 42.3% 50.0% — 90.0% Debt Securities 52.3% 45.0% — 70.0% 57.3% 45.0% — 70.0% Other 1.5% 0.0% 0.4% 0.0% 100.0% 100.0% Japan: Asset Class Equity Securities 39.9% 36.0% — 44.0% 40.3% 36.0% — 44.0% Debt Securities 60.1% 55.0% — 63.0% 58.8% 55.0% — 63.0% Other 0.0% 0.0% — 2.0% 0.9% 0.0% — 2.0% 100.0% 100.0% |
Schedule of Allocation of Plan Assets, Fair Value Hierarchy | The following tables present Woodward’s pension plan assets using the fair value hierarchy established by U.S. GAAP: At September 30, 2022 Level 1 Level 2 Level 3 United States Other Countries United States Other Countries United States Other Countries Total Asset Category: Cash and cash equivalents $ 2,265 $ 467 $ — $ — $ — $ — $ 2,732 Mutual funds: U.S. corporate bond fund 106,653 — — — — — 106,653 U.S. equity large cap fund 28,088 — — — — — 28,088 International equity large cap growth fund 17,475 — — — — — 17,475 Pooled funds: Japanese equity securities — — — 1,775 — — 1,775 International equity securities — — — 1,610 — — 1,610 Japanese fixed income securities — — — 3,875 — — 3,875 International fixed income securities — — — 1,325 — — 1,325 Global target return equity/bond fund — — — 11,533 — — 11,533 Index linked U.K. equity fund — — — 2,253 — — 2,253 Index linked international equity fund — — — 4,271 — — 4,271 Index linked U.K. corporate bonds fund — — — 12,124 — — 12,124 Index linked U.K. government securities fund — — — 3,701 — — 3,701 Index linked U.K. long-term government securities fund — — — 4,645 — — 4,645 Total assets $ 154,481 $ 467 $ — $ 47,112 $ — $ — $ 202,060 At September 30, 2021 Level 1 Level 2 Level 3 United States Other Countries United States Other Countries United States Other Countries Total Asset Category: Cash and cash equivalents $ 3,508 $ 324 $ — $ — $ — $ — $ 3,832 Mutual funds: U.S. corporate bond fund 149,727 — — — — — 149,727 U.S. equity large cap fund 41,988 — — — — — 41,988 International equity large cap growth fund 26,040 — — — — — 26,040 Pooled funds: Japanese equity securities — — — 2,610 — — 2,610 International equity securities — — — 2,180 — — 2,180 Japanese fixed income securities — — — 5,224 — — 5,224 International fixed income securities — — — 1,775 — — 1,775 Global target return equity/bond fund — — — 15,201 — — 15,201 Index linked U.K. equity fund — — — 3,236 — — 3,236 Index linked international equity fund — — — 6,093 — — 6,093 Index linked U.K. corporate bonds fund — — — 18,438 — — 18,438 Index linked U.K. government securities fund — — — 6,047 — — 6,047 Index linked U.K. long-term government securities fund — — — 8,716 — — 8,716 Total assets $ 221,263 $ 324 $ — $ 69,520 $ — $ — $ 291,107 |
Other Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Actuarial Assumptions Used | The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of postretirement benefits were as follows: At September 30, 2022 2021 2020 Weighted-average discount rate used to determine benefit obligation 5.70 % 2.80 % 2.45 % Weighted-average discount rate used to determine net periodic benefit cost 2.80 2.45 3.05 |
Schedule of Net Periodic Benefit Costs | Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statements of Earnings: Year Ended September 30, 2022 2021 2020 Service cost $ 1 $ 1 $ 2 Interest cost 577 599 782 Amortization of: Net (gain) loss (94 ) 30 47 Net prior service cost (benefit) — 1 3 Net periodic cost $ 484 $ 631 $ 834 |
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following table provides a reconciliation of the changes in the accumulated postretirement benefit obligation and fair value of assets for the postretirement benefits: Year Ended September 30, 2022 2021 Changes in accumulated postretirement benefit obligation: Accumulated postretirement benefit obligation at beginning of year $ 21,544 $ 25,445 Service cost 1 1 Interest cost 577 599 Premiums paid by plan participants 923 993 Net actuarial gains (3,504 ) (2,422 ) Benefits paid (2,744 ) (3,072 ) Accumulated postretirement benefit obligation at end of year $ 16,797 $ 21,544 Changes in fair value of plan assets: Fair value of plan assets at beginning of year $ — $ — Contributions by the company 1,821 2,079 Premiums paid by plan participants 923 993 Benefits paid (2,744 ) (3,072 ) Fair value of plan assets at end of year $ — $ — Funded status at end of year $ (16,797 ) $ (21,544 ) |
Schedule of Amounts Recognized in Balance Sheet and Other Comprehensive Income (Loss) | The following tables provide the amounts recognized in the statement of financial position and accumulated other comprehensive losses for the postretirement plans: Year Ended September 30, 2022 2021 Amounts recognized in statement of financial position consist of: Accrued liabilities $ (1,803 ) $ (1,808 ) Other non-current liabilities (14,994 ) (19,736 ) Funded status at end of year $ (16,797 ) $ (21,544 ) Amounts recognized in accumulated other comprehensive income consist of: Unrecognized net prior service cost (benefit) $ - $ - Unrecognized net gains (6,225 ) (2,815 ) Total amounts recognized (6,225 ) (2,815 ) Deferred taxes 1,247 289 Amounts recognized in accumulated other comprehensive income $ (4,978 ) $ (2,526 ) |
Schedule of Changes in Plan Assets and Benefit Obligations Recorded in Other Comprehensive Income (Loss) | The following table reconciles the changes in accumulated other comprehensive losses for the other postretirement benefit plans: Year Ended September 30, 2022 2021 Accumulated other comprehensive losses at beginning of year $ (2,815 ) $ (362 ) Net gain (3,504 ) (2,422 ) Amortization of: Net gains (losses) 94 (30 ) Prior service cost — (1 ) Accumulated other comprehensive losses at end of year $ (6,225 ) $ (2,815 ) |
Schedule of Health Care Cost Trend Rates | Assumed healthcare cost trend rates at September 30, were as follows: 2022 2021 Health care cost trend rate assumed for next year 6.00 % 6.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2027 2027 |
Schedule of Future Postretirement Company Contributions | Using expected future service, it is anticipated that the future Company contributions to pay benefits for other postretirement benefit plans, excluding participate contributions, will be as follows: Year Ending September 30, 2023 $ 2,816 2024 2,765 2025 2,691 2026 2,602 2027 2,490 2028 – 2032 10,659 |
United States [Member] | Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Actuarial Assumptions Used | The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of retirement pension benefits were as follows: At September 30, 2022 2021 2020 United States: Weighted-average assumptions to determine benefit obligation: Discount rate 5.70% 3.05% 2.75% Weighted-average assumptions to determine periodic benefit costs: Discount rate 3.05 2.75 3.25 Long-term rate of return on plan assets 5.00 7.15 7.39 |
United Kingdom | Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Actuarial Assumptions Used | At September 30, 2022 2021 2020 United Kingdom: Weighted-average assumptions to determine benefit obligation: Discount rate 5.35% 2.05% 1.62% Rate of compensation increase 4.00 3.80 3.30 Weighted-average assumptions to determine periodic benefit costs: Discount rate - service cost 2.15 1.71 1.79 Discount rate - interest cost 1.83 1.41 1.59 Rate of compensation increase 4.00 3.30 3.50 Long-term rate of return on plan assets 3.80 4.00 4.75 |
Japan | Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Actuarial Assumptions Used | At September 30, 2022 2021 2020 Japan: Weighted-average assumptions to determine benefit obligation: Discount rate 1.60% 0.92% 1.10 % Rate of compensation increase 2.00 2.00 2.00 Weighted-average assumptions to determine periodic benefit costs: Discount rate - service cost 1.13 1.33 0.72 Discount rate - interest cost 0.65 0.74 0.31 Rate of compensation increase 2.25 2.00 2.00 Long-term rate of return on plan assets 2.00 2.00 2.50 |
Germany [Member] | Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Actuarial Assumptions Used | At September 30, 2022 2021 2020 Germany: Weighted-average assumptions to determine benefit obligation: Discount rate 3.97 % 1.36 % 0.97 % Rate of compensation increase 2.50 2.50 2.50 Weighted-average assumptions to determine periodic benefit costs: Discount rate - service cost 1.54 1.11 1.01 Discount rate - interest cost 1.06 0.76 0.56 Rate of compensation increase 2.50 2.50 2.50 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Dividends Declared and Paid | Dividends declared and paid were as follows: Year Ended September 30, 2022 2021 2020 Dividends declared and paid $ 44,978 $ 36,041 $ 37,664 Dividend per share amount 0.7325 0.5688 0.6050 |
Stock-based Compensation Expense Recognized | Stock-based compensation expense recognized was as follows: Year Ended September 30, 2022 2021 2020 Employee stock-based compensation expense $ 20,109 $ 21,475 $ 22,903 |
Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards | The fair value of options granted is estimated as of the grant date using the Black-Scholes-Merton option-valuation model using the assumptions in the following table. Woodward calculates the expected term, which represents the average period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant. Year Ended September 30, 2022 2021 2020 Weighted-average exercise price per share $ 115.30 $ 82.46 $ 90.52 Expected term (years) 6.6 - 8.7 6.5 - 8.7 6.4 - 8.7 Estimated volatility 33.8 % - 36.4 % 33.3 % - 36.2 % 25.7 % - 35.1 % Estimated dividend yield 0.6 % - 0.8 % 0.3 % - 0.6 % 0.4 % - 0.9 % Risk-free interest rate 1.1 % - 3.5 % 0.4 % - 1.0 % 0.4 % - 1.7 % |
Weighted Average Grant Date Fair Value of Options Granted | The weighted average grant date fair value of options granted follows: Year Ended September 30, 2022 2021 2020 Weighted-average grant date fair value of options $ 41.78 $ 28.22 $ 25.41 |
Summary of Activity for Stock Option Awards | The following is a summary of the activity for stock option awards during the fiscal year ended September 30, 2022: Number Weighted- Average Exercise Price Per Share Balance at September 30, 2021 5,339 $ 68.21 Options granted 514 115.30 Options exercised (468 ) 47.23 Options forfeited (44 ) 88.65 Options expired (2 ) 93.79 Balance at September 30, 2022 5,339 74.40 |
Changes in Non-vested Stock Options | Changes in non-vested stock options during the fiscal year ended September 30, 2022 were as follows: Number Weighted- Average Grant Date Fair Value Per Share Balance at September 30, 2021 2,063 $ 25.77 Options granted 514 41.78 Options vested (721 ) 26.25 Options forfeited (44 ) 29.53 Balance at September 30, 2022 1,812 30.03 |
Stock Options Vested, or Expected to Vest and Exercisable | Information about stock options that have vested, or are expected to vest, and are exercisable at September 30, 2022 was as follows: Number Weighted- Average Exercise Price Weighted- Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 5,339 $ 74.40 5.6 $ 64,895 Options vested and exercisable 3,528 65.83 4.4 58,726 Options vested and expected to vest 5,290 74.17 5.6 64,786 |
Other Stock Option Information | Other information follows: Year Ended September 30, 2022 2021 2020 Total fair value of stock options vested $ 18,945 $ 19,324 $ 17,423 Total intrinsic value of options exercised 32,709 63,667 50,059 Cash received from exercises of stock options 21,897 34,748 24,969 Excess tax benefit realized from exercise of stock options 6,472 12,364 9,399 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Unconditional Purchase Obligations | Future minimum unconditional purchase obligations are as follows: Year Ending September 30, 2023 $ 464,073 2024 29,887 2025 1,305 2026 2,156 2027 — Thereafter 662 Total $ 498,083 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Entity Wide Revenue Major Customer [Line Items] | |
Summary of Consolidated Net Sales and Earnings by Segment | A summary of consolidated net sales and earnings by segment follows: Year Ended September 30, 2022 2021 2020 Segment external net sales: Aerospace $ 1,519,322 $ 1,404,117 $ 1,590,963 Industrial 863,468 841,715 904,702 Total consolidated net sales $ 2,382,790 $ 2,245,832 $ 2,495,665 Segment earnings: Aerospace $ 230,933 $ 234,356 $ 310,137 Industrial 82,788 108,672 100,321 Nonsegment expenses (81,092 ) (64,442 ) (94,530 ) Interest Expense, net (32,731 ) (32,787 ) (34,047 ) Consolidated earnings before income taxes $ 199,898 $ 245,799 $ 281,881 |
Summary of Consolidated Total Assets, Depreciation and Amortization, and Capital Expenditures by Segment | Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets, consolidated depreciation and amortization, and consolidated capital expenditures follows: Year Ended September 30, 2022 2021 2020 Segment assets: Aerospace $ 1,773,854 $ 1,698,833 $ 1,752,516 Industrial 1,380,446 1,453,423 1,529,411 Unallocated corporate property, plant and equipment, net 111,760 106,014 106,380 Other unallocated assets 540,386 832,734 515,029 Consolidated total assets $ 3,806,446 $ 4,091,004 $ 3,903,336 Segment depreciation and amortization: Aerospace $ 60,176 $ 62,075 $ 63,530 Industrial 50,584 56,885 57,444 Unallocated corporate amounts 9,868 10,564 10,184 Consolidated depreciation and amortization $ 120,628 $ 129,524 $ 131,158 Segment capital expenditures: Aerospace $ 23,253 $ 17,303 $ 26,148 Industrial 12,399 15,164 10,631 Unallocated corporate amounts 17,216 5,222 10,308 Consolidated capital expenditures $ 52,868 $ 37,689 $ 47,087 |
U.S. Government Related [Member] | |
Entity Wide Revenue Major Customer [Line Items] | |
U.S. Government Related Sales by Segment | U.S. Government related sales from Woodward’s reportable segments were as follows: Direct U.S. Government Sales Indirect U.S. Government Sales Total U.S. Government Related Sales Fiscal year ended September 30, 2022 Aerospace $ 93,266 $ 433,646 $ 526,912 Industrial 4,759 6,052 10,811 Total net external sales $ 98,025 $ 439,698 $ 537,723 Percentage of total net sales 4 % 19 % 23 % Fiscal year ended September 30, 2021 Aerospace $ 116,832 $ 526,118 $ 642,950 Industrial 7,732 2,442 10,174 Total net external sales $ 124,564 $ 528,560 $ 653,124 Percentage of total net sales 6 % 23 % 29 % Fiscal year ended September 30, 2020 Aerospace $ 149,416 $ 536,424 $ 685,840 Industrial 5,867 17,473 23,340 Total net external sales $ 155,283 $ 553,897 $ 709,180 Percentage of total net sales 6 % 22 % 28 % |
Operations and Summary of Sig_4
Operations and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Selling, general, and administrative expenses include net foreign currency transaction gain (loss) | $ 1,450,000 | $ (1,986,000) | $ 194,000 |
Additional asset impairment charges | 0 | ||
Additional asset impairment charges, intangible assets | $ 0 |
Operations and Summary of Sig_5
Operations and Summary of Significant Accounting Policies (Schedule of Property, Plant and Equipment Useful Lives) (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Land Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Land Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Building and Building Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Leasehold Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Machinery and Production Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Machinery and Production Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Computer Equipment and Software [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Computer Equipment and Software [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Office furniture and equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office furniture and equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Other [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Other [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Computer Equipment and Software, Excluding ERP system [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Equipment and Software, Excluding ERP system [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Enterprise Resource Planning system [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Operations and Summary of Sig_6
Operations and Summary of Significant Accounting Policies (Schedule of Finite-Lived Intangible Assets Useful Lives) (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Customer Relationships And Contracts [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 11 years |
Customer Relationships And Contracts [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Intellectual Property [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Intellectual Property [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 17 years |
Process Technology [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Process Technology [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Other [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Other [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Allowance for uncollectible accounts receivable | $ 3,922 | $ 3,664 |
Operating right-of-use assets | 25,144 | $ 19,370 |
Operating lease liabilities | $ 26,030 |
Revenue - Revenue Derived from
Revenue - Revenue Derived from Product Sales (Details) - Net Sales [Member] - Product Concentration Risk [Member] | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Manufacture [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of attributable to revenue | 84% | 86% | 86% |
MRO [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of attributable to revenue | 14% | 13% | 12% |
Service [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of attributable to revenue | 2% | 1% | 2% |
Revenue (Schedule of Revenue Re
Revenue (Schedule of Revenue Recognition Time) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 2,382,790 | $ 2,245,832 | $ 2,495,665 |
Aerospace [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,519,322 | 1,404,117 | 1,590,963 |
Industrial [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 863,468 | 841,715 | 904,702 |
Point In Time [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,102,970 | 1,008,655 | 1,182,974 |
Point In Time [Member] | Aerospace [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 593,233 | 481,422 | 590,817 |
Point In Time [Member] | Industrial [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 509,737 | 527,233 | 592,157 |
Over Time [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 1,279,820 | 1,237,177 | 1,312,691 |
Over Time [Member] | Aerospace [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 926,089 | 922,695 | 1,000,146 |
Over Time [Member] | Industrial [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 353,731 | $ 314,482 | $ 312,545 |
Revenue (Summary of Amounts Rec
Revenue (Summary of Amounts Recognized Related to Changes in Estimated Total Lifetime Sales for Material Rights and Costs to Fulfill Contracts With Customers) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Change In Contract With Customer Asset And Liability [Abstract] | |||
Revenue | $ 1,514 | $ 2,671 | $ 6,784 |
Cost of goods sold | $ 667 | $ 1,961 | $ 6,638 |
Revenue (Summary of Amounts R_2
Revenue (Summary of Amounts Recognized Related to Amortization of Costs to Fulfill Contracts and Contract Liabilities Not Related to Changes in Estimate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Change In Contract With Customer Asset And Liability [Abstract] | |||
Revenue | $ 4,107 | $ 4,455 | $ 1,664 |
Cost of goods sold | $ 3,077 | $ 3,466 | $ 1,241 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Capitalized cost | $ 167,610 | $ 152,885 | |
Billed accounts receivable due within | 60 days | ||
Noncurrent unbilled receivables | $ 6,649 | $ 9,424 | |
Percent of total billed and unbilled accounts receivable from U.S. Government | 10% | 10% | |
Revenue from contract liabilities | $ 22,313 | $ 19,925 | |
Revenue related to noncash consideration | 65,702 | 71,517 | $ 79,569 |
Aerospace [Member] | |||
Revenue related to noncash consideration | 63,358 | 69,195 | 78,179 |
Industrial [Member] | |||
Revenue related to noncash consideration | $ 2,343 | $ 2,322 | $ 1,390 |
Revenue (Schedule of Accounts R
Revenue (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Contract With Customer Asset [Line Items] | ||
Total billed receivables | $ 368,769 | $ 322,119 |
Current unbilled receivables (contract assets) | 245,117 | 204,596 |
Total accounts receivable | 613,886 | 526,715 |
Less: Allowance for uncollectible amounts | (3,922) | (3,664) |
Total accounts receivable, net | 609,964 | 523,051 |
Trade Accounts Receivable [Member] | ||
Contract With Customer Asset [Line Items] | ||
Billed receivables | 359,364 | 298,951 |
Other (Chinese Financial Institutions) [Member] | ||
Contract With Customer Asset [Line Items] | ||
Billed receivables | $ 9,405 | $ 23,168 |
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) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Revenue From Contract With Customer [Abstract] | ||||
Balance, beginning | $ 3,664 | $ 8,359 | $ 8,936 | |
Charged to costs and expenses, or sales allowance | 1,866 | 2,382 | 4,735 | |
Deductions | (1,587) | (7,255) | (5,342) | |
Other (deductions)/additions | [1] | (21) | 178 | 30 |
Balance, ending | $ 3,922 | $ 3,664 | $ 8,359 | |
[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 | Sep. 30, 2022 | Sep. 30, 2021 |
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | $ 30,663 | $ 29,527 |
Noncurrent contract liabilities | 396,345 | 386,324 |
Deferred Revenue From Material Rights From GE Joint Venture Formation [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 5,754 | 4,771 |
Noncurrent contract liabilities | 234,516 | 234,237 |
Deferred Revenue From Advance Invoicing And/Or Prepayments From Customers [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 4,120 | 4,192 |
Noncurrent contract liabilities | 38 | 290 |
Liability Related To Customer Supplied Inventory [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 12,442 | 14,169 |
Deferred Revenue From Material Rights Related To Engineering And Development Funding [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 8,347 | 6,395 |
Noncurrent contract liabilities | $ 161,791 | $ 151,797 |
Revenue (Narrative - Performanc
Revenue (Narrative - Performance Obligations) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Remaining performance obligation amount | $ 1,558,588 | $ 1,283,311 |
Material Rights [Member] | ||
Remaining performance obligation amount | $ 448,370 |
Revenue (Narrative - Performa_2
Revenue (Narrative - Performance Obligations) (Details1) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Remaining performance obligation amount | $ 1,558,588 | $ 1,283,311 |
Material Rights [Member] | ||
Remaining performance obligation amount | $ 448,370 | |
Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 1 year | |
Remaining performance obligation amount | $ 12,718 | |
Remaining performance obligation, expected timing of satisfaction, year | 2023 | |
Maximum [Member] | Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 40 years | |
Aerospace [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 2 years |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 2,382,790 | $ 2,245,832 | $ 2,495,665 | |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 1,311,600 | 1,278,123 | 1,426,454 | |
Germany [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 232,056 | 183,696 | 233,965 | |
Europe, excluding Germany [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 363,514 | 291,941 | 336,971 | |
China [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 136,379 | 214,269 | 209,885 | |
Asia, excluding China [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 152,189 | 137,500 | 140,069 | |
Other Countries [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 187,052 | 140,303 | 148,321 | |
Aerospace [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 1,519,322 | 1,404,117 | 1,590,963 | |
Aerospace [Member] | United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 1,105,860 | 1,103,373 | 1,231,004 | |
Aerospace [Member] | Germany [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 57,840 | 31,005 | 52,635 | |
Aerospace [Member] | Europe, excluding Germany [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 128,719 | 95,984 | 122,938 | |
Aerospace [Member] | China [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 49,407 | 35,286 | 38,359 | |
Aerospace [Member] | Asia, excluding China [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 23,334 | 23,363 | 27,068 | |
Aerospace [Member] | Other Countries [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 154,162 | 115,106 | 118,959 | |
Aerospace [Member] | Commercial OEM [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 499,438 | 386,543 | 434,306 | |
Aerospace [Member] | Commercial Aftermarket [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 420,881 | 306,547 | 399,843 | |
Aerospace [Member] | Defense OEM [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 422,016 | 509,815 | 526,264 | |
Aerospace [Member] | Defense Aftermarket [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 176,987 | 201,212 | 230,550 | |
Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 863,468 | 841,715 | 904,702 | |
Industrial [Member] | United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 205,740 | 174,750 | 195,450 | |
Industrial [Member] | Germany [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 174,216 | 152,691 | 181,330 | |
Industrial [Member] | Europe, excluding Germany [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 234,795 | 195,957 | 214,033 | |
Industrial [Member] | China [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 86,972 | 178,983 | 171,526 | |
Industrial [Member] | Asia, excluding China [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 128,855 | 114,137 | 113,001 | |
Industrial [Member] | Other Countries [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 32,890 | 25,197 | 29,362 | |
Industrial [Member] | Reciprocating Engines [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 636,866 | 639,946 | 632,555 | |
Industrial [Member] | Industrial Turbines [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 226,602 | $ 201,769 | 222,366 | |
Industrial [Member] | Renewables [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | [1] | $ 49,781 | ||
[1] Sales in the renewables market were discontinued as of May 1, 2020 following the closing of the divestiture of the disposal group (see Note 10, Acquisitions and Divestitures ). |
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 | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | |||
Net earnings | $ 171,698 | $ 208,649 | $ 240,395 |
Denominator: | |||
Basic shares outstanding | 61,517 | 63,287 | 62,267 |
Dilutive effect of stock options and restricted stock units | 1,737 | 2,268 | 1,942 |
Diluted shares outstanding | 63,254 | 65,555 | 64,209 |
Income per common share: | |||
Basic earnings per share | $ 2.79 | $ 3.30 | $ 3.86 |
Diluted earnings per share | $ 2.71 | $ 3.18 | $ 3.74 |
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 | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Options | 1,019 | 41 | 660 |
Weighted-average option price | $ 110.71 | $ 116.38 | $ 104.45 |
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 | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |||
Weighted-average treasury stock shares held for deferred compensation obligations | 151 | 186 | 211 |
Leases (Lease-Related Assets an
Leases (Lease-Related Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Assets: | ||
Operating lease assets | $ 25,144 | $ 19,370 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Finance lease assets | $ 5,474 | $ 781 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Total lease assets | $ 30,618 | $ 20,151 |
Current liabilities: | ||
Operating lease liabilities | $ 4,587 | $ 5,260 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Finance lease liabilities | $ 856 | $ 728 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt |
Noncurrent liabilities: | ||
Operating lease liabilities | $ 21,443 | $ 14,770 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Finance lease liabilities | $ 4,405 | $ 475 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt, less current portion | Long-term debt, less current portion |
Total lease liabilities | $ 31,291 | $ 21,233 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lessee Lease Description [Line Items] | |||
Revenue included embedded operating leases | $ 5,528 | $ 6,305 | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net sales | Net sales | |
Disposal Groups [Member] | |||
Lessee Lease Description [Line Items] | |||
Non-cash impairment charge | $ 639 |
Leases (Supplemental Lease-Rela
Leases (Supplemental Lease-Related Information) (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term, Operating leases | 8 years 3 months 18 days | 4 years 3 months 18 days |
Weighted average remaining lease term, Finance leases | 9 years 8 months 12 days | 1 year 8 months 12 days |
Weighted average discount rate, Operating leases | 3.60% | 3.20% |
Weighted average discount rate, Finance leases | 3.40% | 2.80% |
Leases (Lease-Related Expenses)
Leases (Lease-Related Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Leases [Abstract] | ||||
Operating lease expense | $ 6,335 | $ 6,559 | $ 6,164 | |
Amortization of financing lease assets | 454 | 425 | 476 | |
Interest on financing lease liabilities | 51 | 58 | 87 | |
Variable lease expense | 929 | 1,495 | 1,101 | |
Short-term lease expense | 190 | 283 | 466 | |
Sublease income | [1] | (192) | (680) | (697) |
Total lease expense | $ 7,767 | $ 8,140 | $ 7,597 | |
[1]Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois. During fiscal year 2022, these subleases were terminated. |
Leases (Lease-Related Supplemen
Leases (Lease-Related Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases | $ 5,303 | $ 5,707 | $ 5,622 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases | 51 | 58 | 87 |
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases | 796 | 1,639 | 1,590 |
Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases | 14,678 | 6,871 | 6,501 |
Right-of-use assets obtained in exchange for recorded lease obligations: Finance leases | $ 4,046 | $ 35 | $ 1,244 |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Year Ending September 30: | |
Operating Leases, 2023 | $ 5,383 |
Operating Leases, 2024 | 4,695 |
Operating Leases, 2025 | 3,768 |
Operating Leases, 2026 | 3,156 |
Operating Leases, 2027 | 2,592 |
Operating Leases, Thereafter | 10,959 |
Operating Leases, Total lease payments | 30,553 |
Operating Leases, Less: imputed interest | (4,523) |
Operating lease liabilities | 26,030 |
Year Ending September 30: | |
Finance Leases, 2023 | 1,032 |
Finance Leases, 2024 | 1,002 |
Finance Leases, 2025 | 870 |
Finance Leases, 2026 | 870 |
Finance Leases, 2027 | 868 |
Finance Leases, Thereafter | 1,919 |
Finance Leases, Total lease payments | 6,561 |
Finance Leases, Less: imputed interest | (1,300) |
Finance Leases, Total lease obigations | $ 5,261 |
Leases (Property, Plant and Equ
Leases (Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
Property, plant and equipment leased to others through embedded leasing arrangements | $ 44,912 | $ 93,732 |
Less accumulated depreciation | (25,508) | (35,733) |
Property, plant and equipment leased to others through embedded leasing arrangements, net | $ 19,404 | $ 57,999 |
Joint Venture (Unamortized Defe
Joint Venture (Unamortized Deferred Revenue from JV) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule Of Equity Method Investments [Line Items] | ||
Accrued liabilities | $ 5,754 | $ 4,771 |
Other liabilities | $ 234,516 | $ 234,237 |
Joint Venture (Narrative) (Deta
Joint Venture (Narrative) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Ownership interest, joint venture | 50% | ||||
Cash received annually from formation of joint venture | $ 4,894 | $ 4,894 | $ 4,894 | ||
Other Liabilities [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Contract liabilities | 79,257 | $ 73,657 | |||
Reduction in contract liabilities and costs to fulfill contract | 1,146 | 2,072 | |||
Other Assets [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Costs to fulfill a contract | 79,257 | 73,657 | |||
Reduction in contract assets and costs to fulfill contract | 1,146 | 2,072 | |||
Sales [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Amortization of deferred income recognized as an increase to sales | 3,633 | 4,191 | $ 5,493 | ||
Reduction to sales related to royalties owed to joint venture | $ 28,054 | $ 21,101 | $ 23,904 |
Joint Venture (Other Income Rel
Joint Venture (Other Income Related JV) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule Of Equity Method Investments [Line Items] | |||
Other income | $ 18,193 | $ 11,366 | $ 15,580 |
Woodward and General Electric Joint Venture [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Other income | $ 18,193 | $ 11,366 | $ 15,580 |
Joint Venture (Cash Distributio
Joint Venture (Cash Distribution from JV) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Woodward and General Electric Joint Venture [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Cash distributions | $ 17,000 | $ 13,500 | $ 14,000 |
Joint Venture (Net Sales to the
Joint Venture (Net Sales to the JV) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Woodward and General Electric Joint Venture [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Net sales | [1] | $ 28,100 | $ 35,957 | $ 48,222 |
[1] Net sales include a reduction of $28,054 for the fiscal year ended September 30, 2022, $21,101 for the fiscal year ended September 30, 2021, and $23,904 for the fiscal year ended September 30, 2020 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers |
Joint Venture (Accounts Receiva
Joint Venture (Accounts Receivable, Accounts Payable, and Other Assets Related to JV) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Schedule Of Equity Method Investments [Line Items] | ||
Accounts receivable | $ 4,172 | $ 3,639 |
Accounts payable | 4,069 | 2,823 |
Other assets | $ 8,181 | $ 6,988 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Financial assets: | ||
Total financial assets | $ 98,573 | $ 42,901 |
Financial liabilities: | ||
Total financial liabilities | 50,185 | |
Cross Currency Interest Rate Swaps [Member] | ||
Financial assets: | ||
Cross currency interest rate swaps | 38,168 | |
Financial liabilities: | ||
Cross currency interest rate swaps | 50,185 | |
Investments in Term Deposits with Foreign Banks [Member] | ||
Financial assets: | ||
Investments | 37,605 | 13,187 |
Equity Securities [Member] | ||
Financial assets: | ||
Equity securities | 22,800 | 29,714 |
Level 1 [Member] | ||
Financial assets: | ||
Total financial assets | 60,405 | 42,901 |
Level 1 [Member] | Investments in Term Deposits with Foreign Banks [Member] | ||
Financial assets: | ||
Investments | 37,605 | 13,187 |
Level 1 [Member] | Equity Securities [Member] | ||
Financial assets: | ||
Equity securities | 22,800 | 29,714 |
Level 2 [Member] | ||
Financial assets: | ||
Total financial assets | 38,168 | |
Financial liabilities: | ||
Total financial liabilities | 50,185 | |
Level 2 [Member] | Cross Currency Interest Rate Swaps [Member] | ||
Financial assets: | ||
Cross currency interest rate swaps | $ 38,168 | |
Financial liabilities: | ||
Cross currency interest rate swaps | $ 50,185 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Narrative) (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) |
Measurement Input, Discount Rate [Member] | 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 | 5.6 | 1.6 |
Long Term Notes Receivable from Municipalities [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Interest rate used to measure municipal notes | 3.5 | 1.3 |
Investments in Short-Term Time Deposits [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Interest rate used to measure short-term time deposits | 6.1 | 3.3 |
Cross Currency Interest Rate Swaps [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Cross currency interest rate swaps | $ 38,168 | |
Cross currency interest rate swaps | $ 50,185 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - Level 2 [Member] - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
ASSETS | ||
Investments in short-term time deposits, Estimated Fair Value | $ 8,026 | $ 11,587 |
Liabilities: | ||
Long-term debt, Estimated Fair Value | 646,696 | 812,866 |
Investments in short-term time deposits, Carrying Cost | 7,893 | 11,580 |
Long-term debt, Carrying Cost | 712,054 | 736,706 |
Long Term Notes Receivable from Municipalities [Member] | ||
ASSETS | ||
Notes receivable, Estimated Fair Value | 9,010 | 11,413 |
Liabilities: | ||
Notes receivable, Carrying Cost | $ 8,992 | 10,193 |
Long Term Notes Receivable from Sale of Disposal Groups [Member] | ||
ASSETS | ||
Notes receivable, Estimated Fair Value | 6,288 | |
Liabilities: | ||
Notes receivable, Carrying Cost | $ 6,061 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
May 31, 2020 USD ($) | Sep. 30, 2022 USD ($) Swap loan | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2022 EUR (€) Swap loan | May 31, 2018 USD ($) loan | Sep. 23, 2016 EUR (€) | |
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | $ 11,250 | ||||||
Proceed from net interest accrued on swap contracts settlement | 613,886 | $ 526,715 | |||||
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | 68,880 | 3,702 | $ (2,134) | ||||
Remaining unrecognized gains (losses) associated with derivative instruments included in AOCI | $ (6,338) | (26,506) | |||||
2016 Note Purchase Agreements [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Issuance date | Sep. 23, 2016 | ||||||
Face amount | € | € 160,000,000 | € 160,000,000 | |||||
Series M Notes [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Face amount | € | € 40,000,000 | € 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 | $ 7,206 | (592) | 3,199 | ||||
Floating-Rate Cross Currency Interest Rate Contract [Member] | Derivatives in Fair Value Hedging Relationships [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | 2,844 | (23) | (5,396) | ||||
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 | ||||||
Floating-Rate Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument | Derivatives in Fair Value Hedging Relationships [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ 1,719 | ||||||
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 | 5 | |||||
Floating Rate Cross Currency Swap [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | 108,823 | ||||||
Fixed Rate Cross Currency Swap [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | 400,000 | ||||||
Floating-Rate Cross-Currency Swap and Fixed-Rate Cross-Currency Swap [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Proceeds from swap contracts settlement | 59,571 | ||||||
Derivative asset, fair value | 58,191 | ||||||
Proceed from net interest accrued on swap contracts settlement | 4,380 | ||||||
Floating-Rate Cross-Currency Swap and Fixed-Rate Cross-Currency Swap [Member] | Selling, General and Administrative Expense [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Swap termination fee | 3,000 | ||||||
2020 Floating-Rate Cross-Currency Swap [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | $ 45,000 | ||||||
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ 66,036 | $ 3,725 | $ 3,190 | ||||
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 | 5 | ||||
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ 32,200 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Impact of Derivative Instruments on Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | |||
Amount of (Income) Expense Recognized in Earnings on Derivative | $ (68,880) | $ (3,702) | $ 1,330 |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | (89,048) | 1,672 | 18,262 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | (68,880) | (3,702) | 2,134 |
Floating-Rate Cross Currency Interest Rate Contract [Member] | Derivatives in Fair Value Hedging Relationships [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of (Income) Expense Recognized in Earnings on Derivative | $ (2,844) | $ 23 | $ 4,592 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | $ (2,854) | $ 60 | $ 4,832 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ (2,844) | $ 23 | $ 5,396 |
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of (Income) Expense Recognized in Earnings on Derivative | $ (66,036) | $ (3,725) | $ (3,190) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | $ (86,194) | $ 1,612 | $ 13,430 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ (66,036) | $ (3,725) | $ (3,190) |
Treasury Lock | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of (Income) Expense Recognized in Earnings on Derivative | $ (72) | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | Interest expense |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | Interest expense |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ (72) |
Supplemental Statement of Cas_3
Supplemental Statement of Cash Flows Information (Schedule of Supplemental Statement of Cash Flows Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid, net of amounts capitalized | $ 27,435 | $ 27,574 | $ 27,148 |
Income taxes paid | 29,560 | 38,949 | 94,088 |
Income tax refunds received | 7,481 | 14,044 | 17,653 |
Non-cash activities: | |||
Purchases of property, plant and equipment on account | 6,452 | 7,771 | 3,076 |
Impact of the adoption of ASC 842 | 255 | ||
Common shares issued from treasury to settle benefit obligations | $ 17,132 | 14,900 | $ 14,748 |
Purchases of treasury stock on account | $ 12,516 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2020 | Aug. 31, 2022 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 808,252 | $ 772,559 | $ 805,333 | |||
Future amortization expense associated with the acquired intangibles | 403,742 | |||||
Impairment of assets sold | 37,902 | |||||
Promissory note, due date | Apr. 30, 2022 | |||||
Disposal Groups [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Non-cash impairment charge | 22,900 | |||||
Impairment of assets sold | $ 37,902 | |||||
Disposal Groups [Member] | AURELIUS Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 23,400 | |||||
Promissory note | $ 6,000 | |||||
Disposal Groups [Member] | AURELIUS Group [Member] | Germany, Poland And Bulgaria [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Sales | $ 88,000 | |||||
P M Controls [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total cash consideration | $ 22,890 | |||||
Goodwill | 8,526 | |||||
Future amortization expense associated with the acquired intangibles | $ 1,074 | |||||
P M Agreements [Member] | P M Controls [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total cash consideration | $ 22,299 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures (Schedule of Purchase Price Consideration) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Aug. 31, 2022 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | ||
Total purchase price | $ 21,549 | |
P M Controls [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid to Sellers | $ 22,890 | |
Less acquired cash and restricted cash | (1,341) | |
Plus settlement of pre-existing relationships | 750 | |
Total purchase price | $ 22,299 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures (Schedule of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Aug. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 772,559 | $ 805,333 | $ 808,252 | |
P M Controls [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 4,334 | |||
Inventories | 2,464 | |||
Other current assets | 386 | |||
Property, plant, and equipment | 2,488 | |||
Goodwill | 8,526 | |||
Intangible assets | 9,916 | |||
Total assets acquired | 28,114 | |||
Other current liabilities | (2,688) | |||
Deferred income tax liabilities | (1,842) | |||
Other noncurrent liabilities | (1,285) | |||
Total liabilities assumed | (5,815) | |||
Net assets acquired | $ 22,299 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures (Schedule of Finite-Lived Intangible Assets Acquired) (Details) - P M Controls [Member] $ in Thousands | 1 Months Ended |
Aug. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Intangible assets | $ 9,916 |
Customer Relationships And Contracts [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 8,332 |
Weighted- Average Useful Life | 11 years |
Amortization Method | Straight-line |
Trade Name [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 1,584 |
Weighted- Average Useful Life | 5 years |
Amortization Method | Straight-line |
Acquisitions and Divestitures_6
Acquisitions and Divestitures (Carrying Value of the Assets and Liabilities Sold) (Details) $ in Thousands | Jun. 30, 2020 USD ($) |
Assets: | |
Accounts receivable | $ 17,637 |
Inventories | 441 |
Other current assets | 796 |
Other assets | 51 |
Total assets | 18,925 |
Liabilities: | |
Accounts payable | 7,633 |
Accrued liabilities | 2,998 |
Other liabilities | 450 |
Total liabilities | $ 11,081 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | |
Inventory Net [Abstract] | |||
Raw materials | $ 126,264 | $ 107,412 | |
Work in progress | 123,005 | 95,846 | |
Component parts | [1] | 329,962 | 260,244 |
Finished goods | 70,019 | 63,109 | |
Customer supplied inventory | 12,442 | 14,169 | |
On-hand inventory for which control has transferred to the customer | (147,405) | (120,809) | |
Inventory, net | $ 514,287 | $ 419,971 | |
[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 | Sep. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 1,679,720 | $ 1,676,791 |
Less accumulated depreciation | (769,248) | (726,222) |
Property, plant, and equipment, net | 910,472 | 950,569 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 84,057 | 86,051 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 555,387 | 553,693 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 19,392 | 19,159 |
Machinery and Production Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 779,514 | 795,128 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 122,670 | 124,444 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 39,749 | 39,987 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 20,162 | 20,012 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 58,789 | $ 38,317 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 25, 2020 | Aug. 11, 2020 | Dec. 30, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||||||
Net gain (loss) on sales of assets | $ 1,775 | $ 4,452 | $ 23,598 | |||
Impairment of assets held for sale | 37,902 | |||||
Duarte Facility [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Net gain (loss) on sales of assets | $ 8,801 | $ 13,522 | 22,323 | |||
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 | |||||
Loveland Facility [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Net gain (loss) on sales of assets | $ 2,330 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment (Schedule of Depreciation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property Plant And Equipment Net [Abstract] | |||
Depreciation expense | $ 83,019 | $ 87,631 | $ 91,700 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 805,333 | $ 808,252 |
Additions | 8,526 | |
Effects of Foreign Currency Translation | (41,300) | (2,919) |
Goodwill, Ending Balance | 772,559 | 805,333 |
Aerospace [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 455,423 | 455,423 |
Goodwill, Ending Balance | 455,423 | 455,423 |
Industrial [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 349,910 | 352,829 |
Additions | 8,526 | |
Effects of Foreign Currency Translation | (41,300) | (2,919) |
Goodwill, Ending Balance | $ 317,136 | $ 349,910 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jul. 31, 2022 | Jul. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2022 | Aug. 31, 2022 | Sep. 30, 2021 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 808,252 | $ 772,559 | $ 805,333 | |||
Assumed annual compound growth rate after five years | 3.95% | 3.95% | ||||
Minimum [Member] | ||||||
Goodwill [Line Items] | ||||||
Weighted average cost of capital assumption | 8.93% | |||||
Maximum [Member] | ||||||
Goodwill [Line Items] | ||||||
Weighted average cost of capital assumption | 17.43% | |||||
Disposal Groups [Member] | ||||||
Goodwill [Line Items] | ||||||
Impairment charge | 8,640 | |||||
Industrial [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 352,829 | $ 317,136 | $ 349,910 | |||
P M Controls [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 8,526 | |||||
P M Controls [Member] | Industrial [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 8,526 |
Intangible Assets, Net (Schedul
Intangible Assets, Net (Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization of Finite-Lived Intangible | $ (399,673) | $ (376,002) |
Net Carrying Amount - Finite-Lived Intangible | 403,742 | |
Intangible Assets, Gross, Total | 860,253 | 935,291 |
Intangible Assets, Net, Total | 460,580 | 559,289 |
Customer Relationships And Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 634,600 | 685,862 |
Accumulated Amortization of Finite-Lived Intangible | (290,377) | (266,895) |
Net Carrying Amount - Finite-Lived Intangible | 344,223 | 418,967 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 12,361 | 15,806 |
Accumulated Amortization of Finite-Lived Intangible | (12,361) | (15,806) |
Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 154,894 | 166,378 |
Accumulated Amortization of Finite-Lived Intangible | (96,935) | (93,301) |
Net Carrying Amount - Finite-Lived Intangible | 57,959 | 73,077 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
September 30, 2022 | 56,838 | 67,245 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 1,560 | |
Net Carrying Amount - Finite-Lived Intangible | 1,560 | |
Aerospace [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization of Finite-Lived Intangible | (293,036) | (277,557) |
Intangible Assets, Gross, Total | 358,053 | 358,053 |
Intangible Assets, Net, Total | 65,017 | 80,496 |
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 | (223,565) | (210,380) |
Net Carrying Amount - Finite-Lived Intangible | 58,118 | 71,303 |
Aerospace [Member] | Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 76,370 | 76,370 |
Accumulated Amortization of Finite-Lived Intangible | (69,471) | (67,177) |
Net Carrying Amount - Finite-Lived Intangible | 6,899 | 9,193 |
Industrial [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization of Finite-Lived Intangible | (106,637) | (98,445) |
Intangible Assets, Gross, Total | 502,200 | 577,238 |
Intangible Assets, Net, Total | 395,563 | 478,793 |
Industrial [Member] | Customer Relationships And Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 352,917 | 404,179 |
Accumulated Amortization of Finite-Lived Intangible | (66,812) | (56,515) |
Net Carrying Amount - Finite-Lived Intangible | 286,105 | 347,664 |
Industrial [Member] | Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 12,361 | 15,806 |
Accumulated Amortization of Finite-Lived Intangible | (12,361) | (15,806) |
Industrial [Member] | Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 78,524 | 90,008 |
Accumulated Amortization of Finite-Lived Intangible | (27,464) | (26,124) |
Net Carrying Amount - Finite-Lived Intangible | 51,060 | 63,884 |
Industrial [Member] | Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
September 30, 2022 | 56,838 | $ 67,245 |
Industrial [Member] | Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 1,560 | |
Net Carrying Amount - Finite-Lived Intangible | $ 1,560 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Sep. 30, 2020 | |
Intangible Assets, Net [Line Items] | |||
Weighted average cost of capital assumption | 9.70% | ||
Assumed annual compound growth rate after five years | 3.95% | 3.95% | |
Assumed annual compound growth rate period | 5 years | ||
Disposal Groups [Member] | |||
Intangible Assets, Net [Line Items] | |||
Impairment of intangible assets, Indefinite-lived | $ 200 | ||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of assets sold |
Intangible Assets, Net (Sched_2
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |||
Amortization expense | $ 37,609 | $ 41,893 | $ 39,458 |
Intangible Assets, Net (Sched_3
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Intangible Assets Net Excluding Goodwill [Abstract] | |
2023 | $ 35,885 |
2024 | 32,014 |
2025 | 26,852 |
2026 | 26,816 |
2027 | 26,750 |
Thereafter | 255,425 |
Net Carrying Amount - Finite-Lived Intangible | $ 403,742 |
Credit Facilities, Short-term_3
Credit Facilities, Short-term Borrowings and Long-term Debt (Short-term Borrowings and Availability Under Various Short-term Credit Facilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Line Of Credit Facility [Line Items] | ||
Total availability | $ 1,027,684 | |
Outstanding letters of credit and guarantees | (9,890) | |
Outstanding borrowings | (66,800) | |
Remaining availability | 950,994 | |
Revolving Credit Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Total availability | 1,000,000 | |
Outstanding letters of credit and guarantees | (9,694) | |
Outstanding borrowings | (66,800) | $ 0 |
Remaining availability | 923,506 | |
Foreign Lines of Credit and Overdraft Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Total availability | 27,266 | |
Remaining availability | 27,266 | |
Foreign Performance Guarantee Facilities [Member] | ||
Line Of Credit Facility [Line Items] | ||
Total availability | 418 | |
Outstanding letters of credit and guarantees | (196) | |
Remaining availability | $ 222 |
Credit Facilities, Short-term_4
Credit Facilities, Short-term Borrowings and Long-term Debt (Narrative) (Details) | 12 Months Ended | |||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2022 EUR (€) | May 31, 2018 USD ($) | Sep. 23, 2016 EUR (€) | |
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,027,684,000 | |||||
Outstanding borrowings | 66,800,000 | |||||
Short-term debt | 66,800,000 | |||||
Amortization of debt financing costs recognized as interest expense | 917,000 | $ 922,000 | $ 892,000 | |||
Unamortized debt issuance costs | $ 1,438,000 | 1,856,000 | ||||
The Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Covenant Description | The Notes contain restrictive covenants customary for such financings, including, among other things, covenants that place limits on Woodward’s ability to incur liens on assets, incur additional debt (including a leverage or coverage-based maintenance test), transfer or sell Woodward’s assets, merge or consolidate with other persons and enter into material transactions with affiliates. Under the financial covenants contained in the note purchase agreement governing each series of the Notes, Woodward’s priority debt may not exceed, at any time, 25% of its consolidated net worth. Woodward’s Leverage Ratio cannot exceed 4.0 to 1.0 during any material acquisition period, or 3.5 to 1.0 at any other time on a rolling four quarter basis. In the event that Woodward’s Leverage Ratio exceeds 3.5 to 1.0 during any material acquisition period, the interest rate on each series of Notes will increase. The minimum consolidated net worth, prior year positive net income, and net cash proceeds resulting from certain issuances of stock for satisfaction of Woodward’s leverage ratio are consistent between the Notes and Revolving Credit Agreement. | |||||
Percent of debt not exceed net worth | 25% | |||||
Unamortized debt issuance costs | $ 1,438,000 | 1,856,000 | ||||
The Notes [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio | 3.5 | 3.5 | ||||
The Notes [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio | 4 | 4 | ||||
Amended And Restated Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Percentage of Positive Net Income as Part of Amended and Restated Revolving Credit Agreement | 50% | |||||
Line Of Credit Facility, Percentage of Net Cash Proceeds as Part of Amended And Restated | 50% | |||||
Line Of Credit Facility, Minimum Consolidated Net Worth Covenant | $ 1,156,000,000 | |||||
Debt Instrument, Covenant Description | The revolving credit agreements described in this Note 15 all contain (or contained, as applicable) certain covenants customary with such agreements, which are generally consistent with the covenants applicable to Woodward’s long-term debt agreements, and contains customary events of default, including certain cross default provisions related to Woodward’s other outstanding material debt arrangements, the occurrence of which would permit the lenders to accelerate the amounts due thereunder. In addition, the Revolving Credit Agreement includes the following financial covenants: (i) a maximum permitted leverage ratio of consolidated net debt to consolidated earnings before interest, taxes, depreciation, stock-based compensation, and amortization, plus any usual non-cash charges to the extent deducted in computing net income and transaction costs associated with permitted acquisitions (incurred within six-months of the permitted acquisition), minus any usual non-cash gains to the extent added in computing net income (“Leverage Ratio”) for Woodward and its consolidated subsidiaries of 3.5 to 1.0, which ratio, subject to certain restrictions, may increase to 4.0 to 1.0 for each period of four consecutive quarters during which a permitted acquisition occurs, and (ii) a minimum consolidated net worth of $1,156,000 plus (a) 50% of Woodward’s positive net income for the prior fiscal year and (b) 50% of Woodward’s net cash proceeds resulting from certain issuances of stock, subject to certain adjustments. | |||||
Amended And Restated Revolving Credit Agreement [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio | 3.5 | 3.5 | ||||
Amended And Restated Revolving Credit Agreement [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio | 4 | 4 | ||||
2016 Note Purchase Agreements [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | € | € 160,000,000 | € 160,000,000 | ||||
Series M Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | € | € 40,000,000 | 40,000,000 | ||||
Series N Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | € | 77,000,000 | |||||
Series M Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | € | € 43,000,000 | |||||
2018 Note Purchase Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 400,000,000 | |||||
Series P Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 85,000,000 | |||||
Series P Notes [Member] | Cross Currency Interest Rate Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 1.82% | 1.82% | ||||
Series P Notes [Member] | 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.44% | 3.44% | ||||
Series Q Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 85,000,000 | |||||
Series Q Notes [Member] | Cross Currency Interest Rate Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 2.15% | 2.15% | ||||
Series Q Notes [Member] | 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.44% | 3.44% | ||||
Series R Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 75,000,000 | |||||
Series R Notes [Member] | Cross Currency Interest Rate Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 2.42% | 2.42% | ||||
Series R Notes [Member] | 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.45% | 3.45% | ||||
Series S Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 75,000,000 | |||||
Series S Notes [Member] | Cross Currency Interest Rate Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 2.55% | 2.55% | ||||
Series S Notes [Member] | 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.50% | 3.50% | ||||
Series T Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 80,000,000 | |||||
Series T Notes [Member] | Cross Currency Interest Rate Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 2.90% | 2.90% | ||||
Series T Notes [Member] | 2020 Floating-Rate Cross-Currency Swap and 2020 Fixed-Rate Cross-Currency Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.62% | 3.62% | ||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||
Line of credit facility, maximum borrowing capacity extension | 1,500,000,000 | |||||
Principal amount borrowing outstanding | $ 66,800,000 | |||||
Effective interest rate | 0.0424 | |||||
Outstanding borrowings | $ 66,800,000 | 0 | ||||
Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.875% | |||||
Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Foreign Lines of Credit and Overdraft Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 27,266,000 | |||||
Short-term debt | 0 | 0 | ||||
Revolving Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Balance of unamortized debt issuance costs, line of credit | $ 1,046,000 | $ 1,644,000 |
Credit Facilities, Short-term_5
Credit Facilities, Short-term Borrowings and Long-term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 710,616 | $ 734,850 |
Unamortized debt issuance costs | (1,438) | (1,856) |
Less: Current portion of long-term debt | 856 | 728 |
Long-term debt, less current portion | 709,760 | 734,122 |
Series H Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 25,000 | 25,000 |
Interest rate | 4.03% | |
Maturity date | Nov. 15, 2023 | |
Series I Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 25,000 | 25,000 |
Interest rate | 4.18% | |
Maturity date | Nov. 15, 2025 | |
Series K Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50,000 | 50,000 |
Interest rate | 4.03% | |
Maturity date | Nov. 15, 2023 | |
Series L Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50,000 | 50,000 |
Interest rate | 4.18% | |
Maturity date | Nov. 15, 2025 | |
Series M Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Sep. 23, 2026 | |
Series M Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 39,198 | 46,376 |
Interest rate | 1.12% | |
Maturity date | Sep. 23, 2026 | |
Series N Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 75,457 | 89,273 |
Interest rate | 1.31% | |
Maturity date | Sep. 23, 2028 | |
Series M Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 42,138 | 49,854 |
Interest rate | 1.57% | |
Maturity date | Sep. 23, 2031 | |
Series P Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 85,000 | 85,000 |
Interest rate | 4.27% | |
Maturity date | May 30, 2025 | |
Series Q Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 85,000 | 85,000 |
Interest rate | 4.35% | |
Maturity date | May 30, 2027 | |
Series R Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 75,000 | 75,000 |
Interest rate | 4.41% | |
Maturity date | May 30, 2029 | |
Series S Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 75,000 | 75,000 |
Interest rate | 4.46% | |
Maturity date | May 30, 2030 | |
Finance Leases [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,261 | 1,203 |
Series T Notes [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 80,000 | $ 80,000 |
Interest rate | 4.61% | |
Maturity date | May 30, 2033 |
Credit Facilities, Short-term_6
Credit Facilities, Short-term Borrowings and Long-term Debt (Schedule of Future Principal Payments of Long-term Debt) (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 75,000 |
2025 | 85,000 |
2026 | 114,198 |
2027 | 85,000 |
Thereafter | 347,595 |
Long-term debt balance | $ 706,793 |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Accrued Liabilities Current [Abstract] | ||||
Salaries and other member benefits | $ 75,665 | $ 54,497 | ||
Product warranties and related liabilities (1) | 40,042 | 17,481 | $ 18,972 | $ 27,309 |
Interest payable | 13,481 | 14,822 | ||
Accrued retirement benefits | 2,779 | 2,825 | ||
Net current contract liabilities (Note 3) | 30,663 | 29,527 | ||
Current portion of accrued restructuring charges (2) | 1,083 | 4,495 | ||
Taxes, other than income | 21,159 | 19,453 | ||
Purchase of treasury stock in transit | 12,516 | |||
Other | 21,411 | 27,523 | ||
Accrued liabilities | $ 206,283 | $ 183,139 |
Accrued Liabilities (Accrued _2
Accrued Liabilities (Accrued Liabilities) (Parenthetical) (Details) $ in Thousands | Sep. 30, 2021 USD ($) |
Accrued Liabilities Current [Abstract] | |
Accrued restructuring charges | $ 513 |
Accrued Liabilities (Changes in
Accrued Liabilities (Changes in Accrued Product Warranties and Related Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accrued Liabilities Current [Abstract] | |||
Beginning of period | $ 17,481 | $ 18,972 | $ 27,309 |
Additions, net of recoveries | 29,827 | 1,164 | 8,687 |
Reductions for settlement | (6,937) | (2,718) | (17,422) |
Foreign currency exchange rate changes | (329) | 63 | 398 |
End of period | $ 40,042 | $ 17,481 | $ 18,972 |
Accrued Liabilities (Narrative)
Accrued Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ (3,420) | $ 5,008 | $ 22,216 |
Restructuring activities | (3,420) | 5,008 | 22,216 |
Termination Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related charges | $ 23,673 | ||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring activities | ||
Hydraulics Systems and Engine Systems [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 1,083 | 5,008 | |
Restructuring charges expected payment term | 12 months | ||
Restructuring Reserve, Accrual Adjustment | $ 4,503 | ||
Restructuring activities | $ 1,083 | $ 5,008 |
Accrued Liabilities (Changes _2
Accrued Liabilities (Changes in Restructuring Reserve Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Charges | $ (3,420) | $ 5,008 | $ 22,216 |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, beginning of period | 5,008 | 3,395 | |
Charges | 1,083 | 5,008 | |
Payments | (505) | (2,409) | |
Foreign currency exchange rate changes | 180 | ||
Non-cash activity | (4,503) | (1,166) | |
Restructuring charges, end of period | 1,083 | 5,008 | 3,395 |
Employee Severance [Member] | Covid-19 Pandemic [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, beginning of period | 3,395 | ||
Payments | (2,409) | ||
Foreign currency exchange rate changes | 180 | ||
Non-cash activity | (1,166) | ||
Restructuring charges, end of period | $ 3,395 | ||
Employee Severance [Member] | Hydraulics Systems Realignment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, beginning of period | 3,758 | ||
Charges | 3,758 | ||
Payments | (505) | ||
Non-cash activity | (3,253) | ||
Restructuring charges, end of period | 3,758 | ||
Employee Severance [Member] | Engine Systems Realignment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, beginning of period | 1,250 | ||
Charges | 1,250 | ||
Non-cash activity | (1,250) | ||
Restructuring charges, end of period | $ 1,250 | ||
Employee Severance [Member] | Aerospace [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | 139 | ||
Restructuring charges, end of period | 139 | ||
Employee Severance [Member] | Industrial [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | 944 | ||
Restructuring charges, end of period | $ 944 |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Liabilities Noncurrent [Abstract] | |||
Net accrued retirement benefits, less amounts recognized within accrued liabilities | $ 70,168 | $ 107,074 | |
Total unrecognized tax benefits | 9,757 | 13,412 | |
Noncurrent income taxes payable | 14,329 | 16,257 | |
Deferred economic incentives | [1] | 7,029 | 8,173 |
Cross-currency swap derivative liability | 50,185 | ||
Operating lease liabilities | 21,443 | 14,770 | |
Net noncurrent contract liabilities | 396,345 | 386,324 | |
Other | 10,185 | 21,713 | |
Other liabilities | $ 529,256 | $ 617,908 | |
[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 | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity interest in the earnings of the JV (Note 6) | $ (18,193) | $ (11,366) | $ (15,580) |
Net (gain) on sales of assets and businesses | (1,775) | (4,452) | (23,598) |
Rent income | (672) | (1,355) | (1,403) |
Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense | (11,572) | (14,127) | (11,809) |
Other | (774) | (264) | (400) |
Other (income) expense, net | (26,691) | (36,493) | (56,166) |
Gain (Loss) on Investments in Deferred Compensation Program [Member] | |||
Net loss (gain) on investments in deferred compensation program | $ 6,295 | $ (4,929) | $ (3,376) |
Other (Income) Expense, Net (_2
Other (Income) Expense, Net (Schedule of Other (Income) Expense, Net) (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Aug. 11, 2020 | Dec. 30, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net (gain) loss on sales of assets | $ 1,775 | $ 4,452 | $ 23,598 | ||
Duarte Facility [Member] | |||||
Net (gain) loss on sales of assets | $ 8,801 | $ 13,522 | 22,323 | ||
Loveland Campus [Member] | |||||
Net (gain) loss on sales of assets | $ 2,330 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Current: | |||
Federal | $ 21,869 | $ 15,109 | $ 15,976 |
State | 2,310 | 853 | 1,383 |
Foreign | 27,577 | 34,354 | 22,588 |
Deferred: | |||
Federal | (13,216) | (8,369) | 10,784 |
State | (8,623) | (2,658) | (547) |
Foreign | (1,717) | (2,139) | (8,698) |
Income tax expense | $ 28,200 | $ 37,150 | $ 41,486 |
Income Taxes (Earnings Before I
Income Taxes (Earnings Before Income Taxes by Geographical Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 99,427 | $ 136,280 | $ 180,753 |
Other countries | 100,471 | 109,519 | 101,128 |
Earnings before income taxes | $ 199,898 | $ 245,799 | $ 281,881 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred tax assets: | ||
Defined benefit plans, other postretirement | $ 4,144 | $ 5,364 |
Foreign net operating loss carryforwards | 3,449 | 2,110 |
Inventory | 57,102 | 51,011 |
Stock-based and other compensation | 42,428 | 36,343 |
Deferred revenue net of unbilled receivables | 49,491 | 46,002 |
Other reserves | 8,017 | 10,619 |
Tax credits and incentives | 25,623 | 22,756 |
Lease obligations | 7,150 | 5,818 |
Other | 3,402 | 7,936 |
Valuation allowance | (2,537) | (4,138) |
Total deferred tax assets, net of valuation allowance | 198,269 | 183,821 |
Deferred tax liabilities: | ||
Goodwill and intangibles - net | (187,988) | (210,911) |
Property, plant and equipment | (100,215) | (105,724) |
Right of use assets | (7,013) | (5,497) |
Defined benefit plans, pension | (3,969) | (2,837) |
Other | (2,832) | (2,722) |
Total deferred tax liabilities | (302,017) | (327,691) |
Net deferred tax liabilities | $ (103,748) | $ (143,870) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 21 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2022 | |
Income Taxes [Line Items] | ||||
Statutory tax rate | 21% | 21% | 21% | 21% |
Net operating loss deferred tax asset, foreign | $ 3,449 | $ 2,110 | $ 3,449 | |
Tax credits and incentives | 25,623 | 22,756 | 25,623 | |
Undistributed foreign earnings not provided for taxes | 346,000 | 346,000 | ||
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 8,092 | $ 8,724 | 8,092 | |
Possible decrease in unrecognized tax benefits liability | $ 4,203 | $ 4,203 | ||
Domestic Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Year remaining open to tax examination | 2019 | |||
Internal Revenue Service (IRS) [Member] | ||||
Income Taxes [Line Items] | ||||
Year remaining open to tax examination | 2017 | |||
Foreign Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Year remaining open to tax examination | 2017 | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Year remaining open to tax examination | 2018 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of U.S Statutory Rate to Effective Tax Rate) (Details) | 12 Months Ended | 21 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Statutory tax rate | 21% | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | (0.50%) | 0.30% | (2.50%) | |
Taxes on international activities | (0.10%) | (2.10%) | 0.80% | |
Research credit | (3.10%) | (3.60%) | (4.50%) | |
Net excess income tax benefit from stock-based compensation | (4.20%) | (2.80%) | (2.50%) | |
Adjustments of prior period tax items | 0.40% | 1% | ||
Compensation and benefits | 0.50% | 0.40% | 0.30% | |
Other items, net | 1.10% | 0.50% | 1.50% | |
Effective tax rate | 15.10% | 14.70% | 14.10% |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of the Beginning and Ending Amounts of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | $ 15,199 | $ 9,851 | $ 10,305 |
Additions to current year tax positions | 1,783 | 2,289 | 1,890 |
Reductions to prior year tax positions | (963) | (2,415) | |
Additions to prior year tax positions | 112 | 3,166 | 71 |
Lapse of applicable statute of limitations | (4,193) | (107) | |
Ending Balance | $ 11,938 | $ 15,199 | $ 9,851 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2022 USD ($) yr shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2020 USD ($) shares | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of annual contribution equal to eligible prior year wages | 5% | |||
Number of years of service | 2 years | |||
Common shares issued from treasury stock for benefit plans | $ 17,132 | $ 14,900 | $ 14,748 | |
Shares of woodward stock held in woodward retirement savings plan | shares | 2,553 | 2,760 | ||
Accrued liabilities | $ 14,769 | $ 11,588 | ||
Treasury Stock at Cost [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Common shares issued from treasury stock for benefit plans | $ 6,567 | $ 5,358 | $ 5,328 | |
Common shares issued from treasury stock for benefit plans, shares | shares | 150 | 128 | 124 | |
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current portion of pension obligation | $ 976 | $ 1,017 | ||
Net periodic retirement (benefit) cost | (683) | (3,191) | $ (346) | |
Projected benefit obligation | 197,921 | 299,364 | 307,623 | |
Fair value of plan assets | 202,060 | 291,107 | 266,709 | |
Defined Benefit Pension Plan [Member] | Cash and Cash Equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2,732 | 3,832 | ||
Defined Benefit Pension Plan [Member] | Pooled funds: Index linked U.K. government securities fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3,701 | 6,047 | ||
Defined Benefit Pension Plan [Member] | Pooled funds: Index linked U.K. long-term government securities fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4,645 | 8,716 | ||
Defined Benefit Pension Plan [Member] | United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic retirement (benefit) cost | $ (2,778) | (5,948) | (2,731) | |
Discount rate support/source data | In the United States, Woodward uses a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding to determine the benefit obligations at year end | |||
Convergence period | 5 years | |||
Long term rate | 0.75 | |||
Projected benefit obligation | $ 132,444 | 177,346 | 184,077 | |
Fair value of plan assets | 154,481 | 221,263 | 201,555 | |
Accumulated benefit obligation | 132,444 | |||
Estimated future employer contributions in the next fiscal year | 0 | |||
Defined Benefit Pension Plan [Member] | Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current portion of pension obligation | 976 | 1,017 | ||
Net periodic retirement (benefit) cost | $ 2,095 | 2,757 | 2,385 | |
Discount rate support/source data | In the United Kingdom, Germany and Japan, Woodward uses a high-quality corporate bond yield curve matched with separate cash flows to develop a single rate to determine the single rate equivalent to settle the entire benefit obligations in each jurisdiction. For the fiscal years ended September 30, 2022 and 2021, the discount rate used to determine periodic service cost and interest cost components of the overall benefit costs was based on spot rates derived from the same high-quality corporate bond yield curve used to determine the September 30, 2021 and 2020 benefit obligation, respectively, matched with separate cash flows for each future year | |||
Projected benefit obligation | $ 65,477 | 122,018 | 123,546 | |
Fair value of plan assets | 47,579 | 69,844 | 65,154 | |
Defined Benefit Pension Plan [Member] | United Kingdom | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 30,788 | |||
Fair value of plan assets | 39,096 | |||
Accumulated benefit obligation | 30,342 | |||
Estimated future employer contributions in the next fiscal year | 1,044 | |||
Defined Benefit Pension Plan [Member] | Japan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 6,976 | |||
Fair value of plan assets | 8,483 | |||
Accumulated benefit obligation | 6,432 | |||
Estimated future employer contributions in the next fiscal year | 134 | |||
Defined Benefit Pension Plan [Member] | Germany [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 27,713 | |||
Fair value of plan assets | 0 | |||
Accumulated benefit obligation | 27,707 | |||
Estimated future employer contributions in the next fiscal year | $ 990 | |||
Defined Benefit Pension Plan [Member] | Japan And United Kingdom [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Annual improvement rate | 1.5 | |||
Other Postretirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current portion of pension obligation | $ 1,803 | 1,808 | ||
Net periodic retirement (benefit) cost | 484 | 631 | $ 834 | |
Accumulated benefit obligation | $ 16,797 | 21,544 | ||
Option to elect company provided medical insurance coverage up to this age and a Medicare supplemental plan after this age | yr | 65 | |||
Age employees were eligible to participate in plan | yr | 55 | |||
Defined benefit plan, minimum years of service required for employees to be eligible for benefits | 10 years | |||
Approximate number of retired employees and their covered dependents and beneficiaries currently providing postretirement benefits | 7 | |||
Approximate number of active employees and their covered dependants and beneficiaries who may receive postretirement benefits in the future | 401 | |||
As a result of a plan amendment, all postretirement medical benefits are fully insured for retirees who have attained this age | 65 | |||
Other Postretirement Benefit Plans [Member] | United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate support/source data | Woodward used a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding to determine the benefit obligations at year end | |||
Convergence period | 5 years | |||
Long term rate | 0.75 | |||
Woodward Retirement Savings Plan [Member] | United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | 177,346 | |||
Woodward Retirement Savings Plan [Member] | United Kingdom | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | 60,690 | |||
Woodward Retirement Savings Plan [Member] | Japan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | 8,958 | |||
Woodward Retirement Savings Plan [Member] | Germany [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $ 50,402 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Amount of Expense Associated with Defined Contribution Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |||
Company costs | $ 40,898 | $ 33,717 | $ 33,769 |
Retirement Benefits (Schedule_2
Retirement Benefits (Schedule of Assumptions Used) (Details) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Pension Plan [Member] | United States [Member] | |||
Weighted-average assumptions to determine benefit obligation: | |||
Discount rate | 5.70% | 3.05% | 2.75% |
Weighted-average assumptions to determine periodic benefit costs: | |||
Discount rate | 3.05% | 2.75% | 3.25% |
Long-term rate of return on plan assets | 5% | 7.15% | 7.39% |
Defined Benefit Pension Plan [Member] | United Kingdom | |||
Weighted-average assumptions to determine benefit obligation: | |||
Discount rate | 5.35% | 2.05% | 1.62% |
Rate of compensation increase | 4% | 3.80% | 3.30% |
Weighted-average assumptions to determine periodic benefit costs: | |||
Long-term rate of return on plan assets | 3.80% | 4% | 4.75% |
Discount rate - service cost | 2.15% | 1.71% | 1.79% |
Discount rate - interest cost | 1.83% | 1.41% | 1.59% |
Rate of compensation increase | 4% | 3.30% | 3.50% |
Defined Benefit Pension Plan [Member] | Japan | |||
Weighted-average assumptions to determine benefit obligation: | |||
Discount rate | 1.60% | 0.92% | 1.10% |
Rate of compensation increase | 2% | 2% | 2% |
Weighted-average assumptions to determine periodic benefit costs: | |||
Long-term rate of return on plan assets | 2% | 2% | 2.50% |
Discount rate - service cost | 1.13% | 1.33% | 0.72% |
Discount rate - interest cost | 0.65% | 0.74% | 0.31% |
Rate of compensation increase | 2.25% | 2% | 2% |
Defined Benefit Pension Plan [Member] | Germany [Member] | |||
Weighted-average assumptions to determine benefit obligation: | |||
Discount rate | 3.97% | 1.36% | 0.97% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Weighted-average assumptions to determine periodic benefit costs: | |||
Discount rate - service cost | 1.54% | 1.11% | 1.01% |
Discount rate - interest cost | 1.06% | 0.76% | 0.56% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Other Postretirement Benefit Plans [Member] | |||
Weighted-average assumptions to determine benefit obligation: | |||
Discount rate | 5.70% | 2.80% | 2.45% |
Weighted-average assumptions to determine periodic benefit costs: | |||
Discount rate | 2.80% | 2.45% | 3.05% |
Retirement Benefits (Schedule_3
Retirement Benefits (Schedule of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 3,893 | $ 4,651 | $ 4,524 |
Interest cost | $ 6,893 | $ 6,318 | $ 6,868 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Expected return on plan assets | $ (13,287) | $ (16,626) | $ (15,173) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of: Net losses | $ 814 | $ 1,472 | $ 2,476 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of: Prior service cost (benefit) | $ 1,004 | $ 994 | $ 959 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Net periodic (benefit) cost | $ (683) | $ (3,191) | $ (346) |
Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1 | 2 |
Interest cost | 577 | 599 | 782 |
Amortization of: Net losses | (94) | 30 | 47 |
Amortization of: Prior service cost (benefit) | 1 | 3 | |
Net periodic (benefit) cost | 484 | 631 | 834 |
United States [Member] | Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1,554 | 1,729 | 1,659 |
Interest cost | $ 5,281 | $ 4,957 | $ 5,590 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Expected return on plan assets | $ (10,853) | $ (14,144) | $ (12,346) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of: Net losses | $ 259 | $ 541 | $ 1,430 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of: Prior service cost (benefit) | $ 981 | $ 969 | $ 936 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Net periodic (benefit) cost | $ (2,778) | $ (5,948) | $ (2,731) |
Foreign Plan | Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2,339 | 2,922 | 2,865 |
Interest cost | $ 1,612 | $ 1,361 | $ 1,278 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Expected return on plan assets | $ (2,434) | $ (2,482) | $ (2,827) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of: Net losses | $ 555 | $ 931 | $ 1,046 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Amortization of: Prior service cost (benefit) | $ 23 | $ 25 | $ 23 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income Expense | Other Nonoperating Income Expense | Other Nonoperating Income Expense |
Net periodic (benefit) cost | $ 2,095 | $ 2,757 | $ 2,385 |
Retirement Benefits (Schedule_4
Retirement Benefits (Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Pension Plan [Member] | |||
Changes in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | $ 299,364 | $ 307,623 | |
Plan amendment | 611 | ||
Service cost | 3,893 | 4,651 | $ 4,524 |
Interest cost | 6,893 | 6,318 | 6,868 |
Net actuarial losses (gains) | (84,607) | (9,955) | |
Contribution by participants | 10 | 10 | |
Benefits paid | (11,585) | (11,314) | |
Foreign currency exchange rate changes | (16,047) | 1,420 | |
Projected benefit obligation at end of year | 197,921 | 299,364 | 307,623 |
Changes in fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 291,107 | 266,709 | |
Actual return on plan assets | (68,506) | 31,915 | |
Contributions by the Company | 2,370 | 2,185 | |
Contribution by participants | 10 | 10 | |
Benefits paid | (11,585) | (11,314) | |
Foreign currency exchange rate changes | (11,336) | 1,602 | |
Fair value of plan assets at end of year | 202,060 | 291,107 | 266,709 |
Net over/(under) funded status at end of year | 4,139 | (8,257) | |
United States [Member] | Defined Benefit Pension Plan [Member] | |||
Changes in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 177,346 | 184,077 | |
Plan amendment | 611 | ||
Service cost | 1,554 | 1,729 | 1,659 |
Interest cost | 5,281 | 4,957 | 5,590 |
Net actuarial losses (gains) | (43,639) | (6,496) | |
Benefits paid | (8,098) | (7,532) | |
Projected benefit obligation at end of year | 132,444 | 177,346 | 184,077 |
Changes in fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 221,263 | 201,555 | |
Actual return on plan assets | (58,684) | 27,240 | |
Benefits paid | (8,098) | (7,532) | |
Fair value of plan assets at end of year | 154,481 | 221,263 | 201,555 |
Net over/(under) funded status at end of year | 22,037 | 43,917 | |
Foreign Plan | Defined Benefit Pension Plan [Member] | |||
Changes in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 122,018 | 123,546 | |
Service cost | 2,339 | 2,922 | 2,865 |
Interest cost | 1,612 | 1,361 | 1,278 |
Net actuarial losses (gains) | (40,968) | (3,459) | |
Contribution by participants | 10 | 10 | |
Benefits paid | (3,487) | (3,782) | |
Foreign currency exchange rate changes | (16,047) | 1,420 | |
Projected benefit obligation at end of year | 65,477 | 122,018 | 123,546 |
Changes in fair value of plan assets: | |||
Fair value of plan assets at beginning of year | 69,844 | 65,154 | |
Actual return on plan assets | (9,822) | 4,675 | |
Contributions by the Company | 2,370 | 2,185 | |
Contribution by participants | 10 | 10 | |
Benefits paid | (3,487) | (3,782) | |
Foreign currency exchange rate changes | (11,336) | 1,602 | |
Fair value of plan assets at end of year | 47,579 | 69,844 | 65,154 |
Net over/(under) funded status at end of year | (17,898) | (52,174) | |
Other Postretirement Benefit Plans [Member] | |||
Changes in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 21,544 | 25,445 | |
Service cost | 1 | 1 | |
Interest cost | 577 | 599 | |
Net actuarial losses (gains) | (3,504) | (2,422) | |
Contribution by participants | 923 | 993 | |
Benefits paid | (2,744) | (3,072) | |
Projected benefit obligation at end of year | 16,797 | 21,544 | $ 25,445 |
Changes in fair value of plan assets: | |||
Contributions by the Company | 1,821 | 2,079 | |
Contribution by participants | 923 | 993 | |
Benefits paid | (2,744) | (3,072) | |
Net over/(under) funded status at end of year | $ (16,797) | $ (21,544) |
Retirement Benefits (Schedule_5
Retirement Benefits (Schedule of Accumulated Benefit Obligations In Excess of and Less Than Fair Value of Plan Assets) (Details) - Defined Benefit Pension Plan [Member] - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Plans with accumulated benefit obligation in excess of plan assets | ||
Projected benefit obligation, plans with ABO in excess of plan assets | $ (48,371) | $ (112,302) |
Accumulated benefit obligation, plans with ABO in excess of plan assets | (48,354) | (111,151) |
Fair value of plan assets, plans with ABO in excess of plan assets | 18,459 | 57,945 |
Plans with accumulated benefit obligation less than plan assets | ||
Projected benefit obligation, plans with ABO less than plan assets | (149,550) | (187,062) |
Accumulated benefit obligation, plans with ABO less than plan assets | (148,571) | (186,245) |
Fair value of plan assets, plans with ABO less than plan assets | $ 183,601 | $ 233,161 |
Retirement Benefits (Schedule_6
Retirement Benefits (Schedule of Amounts Recognized in Balance Sheet and Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Defined Benefit Pension Plan [Member] | |||
Amounts recognized in statement of financial position consist of: | |||
Other non-current assets | $ 34,051 | $ 46,099 | |
Accrued liabilities | (976) | (1,017) | |
Other non-current liabilities | (28,936) | (53,339) | |
Net over/(under) funded status at end of year | 4,139 | (8,257) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Unrecognized net prior service cost (benefit) | 3,937 | 5,039 | |
Unrecognized net losses (gains) | 9,363 | 14,044 | |
Total amounts recognized | 13,300 | 19,083 | $ 45,508 |
Deferred taxes | (8,498) | (9,476) | |
Amounts recognized in accumulated other comprehensive income | 4,802 | 9,607 | |
Other Postretirement Benefit Plans [Member] | |||
Amounts recognized in statement of financial position consist of: | |||
Accrued liabilities | (1,803) | (1,808) | |
Other non-current liabilities | (14,994) | (19,736) | |
Net over/(under) funded status at end of year | (16,797) | (21,544) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Unrecognized net losses (gains) | (6,225) | (2,815) | |
Total amounts recognized | (6,225) | (2,815) | (362) |
Deferred taxes | 1,247 | 289 | |
Amounts recognized in accumulated other comprehensive income | (4,978) | (2,526) | |
United States [Member] | Defined Benefit Pension Plan [Member] | |||
Amounts recognized in statement of financial position consist of: | |||
Other non-current assets | 24,159 | 43,917 | |
Other non-current liabilities | (2,122) | ||
Net over/(under) funded status at end of year | 22,037 | 43,917 | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Unrecognized net prior service cost (benefit) | 3,475 | 4,455 | |
Unrecognized net losses (gains) | 14,822 | (10,816) | |
Total amounts recognized | 18,297 | (6,361) | 14,131 |
Deferred taxes | (7,801) | (1,691) | |
Amounts recognized in accumulated other comprehensive income | 10,496 | (8,052) | |
Foreign Plan | Defined Benefit Pension Plan [Member] | |||
Amounts recognized in statement of financial position consist of: | |||
Other non-current assets | 9,892 | 2,182 | |
Accrued liabilities | (976) | (1,017) | |
Other non-current liabilities | (26,814) | (53,339) | |
Net over/(under) funded status at end of year | (17,898) | (52,174) | |
Amounts recognized in accumulated other comprehensive income consist of: | |||
Unrecognized net prior service cost (benefit) | 462 | 584 | |
Unrecognized net losses (gains) | (5,459) | 24,860 | |
Total amounts recognized | (4,997) | 25,444 | $ 31,377 |
Deferred taxes | (697) | (7,785) | |
Amounts recognized in accumulated other comprehensive income | $ (5,694) | $ 17,659 |
Retirement Benefits (Schedule_7
Retirement Benefits (Schedule of Changes in Plan Assets and Benefit Obligations Recorded in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net gain arising during the period | $ 6,318 | $ 27,809 | $ 20,179 |
Prior service cost due to plan amendment | 611 | ||
Amortization of: Net losses | (720) | (1,502) | (2,523) |
Prior service (cost) benefit | (1,004) | (995) | (962) |
Foreign currency exchange rate changes on minimum retirement benefit liabilities | 1,158 | (855) | (1,672) |
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive losses at beginning of year | 19,083 | 45,508 | |
Net gain arising during the period | (2,814) | (25,425) | |
Prior service cost due to plan amendment | 611 | ||
Amortization of: Net losses | (814) | (1,472) | |
Prior service (cost) benefit | (1,004) | (994) | |
Foreign currency exchange rate changes on minimum retirement benefit liabilities | (1,151) | 855 | |
Accumulated other comprehensive losses at end of year | 13,300 | 19,083 | 45,508 |
Defined Benefit Pension Plan [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive losses at beginning of year | (6,361) | 14,131 | |
Net gain arising during the period | 25,898 | (19,593) | |
Prior service cost due to plan amendment | 611 | ||
Amortization of: Net losses | (259) | (541) | |
Prior service (cost) benefit | (981) | (969) | |
Accumulated other comprehensive losses at end of year | 18,297 | (6,361) | 14,131 |
Defined Benefit Pension Plan [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive losses at beginning of year | 25,444 | 31,377 | |
Net gain arising during the period | (28,712) | (5,832) | |
Amortization of: Net losses | (555) | (931) | |
Prior service (cost) benefit | (23) | (25) | |
Foreign currency exchange rate changes on minimum retirement benefit liabilities | (1,151) | 855 | |
Accumulated other comprehensive losses at end of year | (4,997) | 25,444 | 31,377 |
Other Postretirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive losses at beginning of year | (2,815) | (362) | |
Net gain arising during the period | (3,504) | (2,422) | |
Amortization of: Net losses | 94 | (30) | |
Prior service (cost) benefit | (1) | ||
Accumulated other comprehensive losses at end of year | $ (6,225) | $ (2,815) | $ (362) |
Retirement Benefits (Schedule_8
Retirement Benefits (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 12,023 |
2024 | 12,393 |
2025 | 12,733 |
2026 | 13,036 |
2027 | 13,415 |
2028 – 2032 | 72,046 |
Other Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 2,816 |
2024 | 2,765 |
2025 | 2,691 |
2026 | 2,602 |
2027 | 2,490 |
2028 – 2032 | 10,659 |
United States [Member] | Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 8,839 |
2024 | 9,310 |
2025 | 9,673 |
2026 | 9,967 |
2027 | 10,235 |
2028 – 2032 | 52,807 |
Foreign Plan | Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 3,184 |
2024 | 3,083 |
2025 | 3,060 |
2026 | 3,069 |
2027 | 3,180 |
2028 – 2032 | $ 19,239 |
Retirement Benefits (Schedule_9
Retirement Benefits (Schedule of Allocation of Plan Assets, Actual and Target Allocations) (Details) - Defined Benefit Pension Plan [Member] | Sep. 30, 2022 | Sep. 30, 2021 |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100% | 100% |
United States [Member] | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 29.50% | 30.70% |
United States [Member] | Equity Securities | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 2.40% | 2.50% |
United States [Member] | Equity Securities | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 51.20% | 51.20% |
United States [Member] | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 69% | 67.70% |
United States [Member] | Debt Securities | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 58.80% | 58.80% |
United States [Member] | Debt Securities | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 87.60% | 87.50% |
United States [Member] | Other Investment Asset | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 1.50% | 1.60% |
Target Allocation Ranges | 0% | 0% |
United States [Member] | Other Investment Asset | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 0% | 0% |
United States [Member] | Other Investment Asset | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 0% | 0% |
United Kingdom | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100% | 100% |
United Kingdom | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 46.20% | 42.30% |
United Kingdom | Equity Securities | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 50% | 50% |
United Kingdom | Equity Securities | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 90% | 90% |
United Kingdom | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 52.30% | 57.30% |
United Kingdom | Debt Securities | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 45% | 45% |
United Kingdom | Debt Securities | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 70% | 70% |
United Kingdom | Other Investment Asset | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 1.50% | 0.40% |
Target Allocation Ranges | 0% | 0% |
United Kingdom | Other Investment Asset | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 0% | 0% |
United Kingdom | Other Investment Asset | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 0% | 0% |
Japan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100% | 100% |
Japan | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 39.90% | 40.30% |
Japan | Equity Securities | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 36% | 36% |
Japan | Equity Securities | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 44% | 44% |
Japan | Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 60.10% | 58.80% |
Japan | Debt Securities | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 55% | 55% |
Japan | Debt Securities | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 63% | 63% |
Japan | Other Investment Asset | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 0% | 0.90% |
Japan | Other Investment Asset | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 0% | 0% |
Japan | Other Investment Asset | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Ranges | 2% | 2% |
Retirement Benefits (Schedul_10
Retirement Benefits (Schedule of Allocation of Plan Assets, Fair Value Hierarchy) (Details) - Defined Benefit Pension Plan [Member] - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 202,060 | $ 291,107 | $ 266,709 |
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 154,481 | 221,263 | 201,555 |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47,579 | 69,844 | $ 65,154 |
Level 1 [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 154,481 | 221,263 | |
Level 1 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 467 | 324 | |
Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47,112 | 69,520 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,732 | 3,832 | |
Cash and Cash Equivalents | Level 1 [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,265 | 3,508 | |
Cash and Cash Equivalents | Level 1 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 467 | 324 | |
Debt Security, Corporate, US | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 106,653 | 149,727 | |
Debt Security, Corporate, US | Level 1 [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 106,653 | 149,727 | |
Domestic Equity Large Cap Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28,088 | 41,988 | |
Domestic Equity Large Cap Fund | Level 1 [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28,088 | 41,988 | |
International Equity Large Cap Growth Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17,475 | 26,040 | |
International Equity Large Cap Growth Fund | Level 1 [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17,475 | 26,040 | |
Private Equity Funds Foreign Japan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,775 | 2,610 | |
Private Equity Funds Foreign Japan | Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,775 | 2,610 | |
Private Equity Funds Pooled Funds Foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,610 | 2,180 | |
Private Equity Funds Pooled Funds Foreign | Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,610 | 2,180 | |
Fixed Income Funds Japan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,875 | 5,224 | |
Fixed Income Funds Japan | Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,875 | 5,224 | |
Fixed Income Funds Foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,325 | 1,775 | |
Fixed Income Funds Foreign | Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,325 | 1,775 | |
Global Target Return Equity Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,533 | 15,201 | |
Global Target Return Equity Bond Fund | Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,533 | 15,201 | |
United Kingdom Index Linked Equity Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,253 | 3,236 | |
United Kingdom Index Linked Equity Fund | Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,253 | 3,236 | |
Index linked international equity fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,271 | 6,093 | |
Index linked international equity fund | Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,271 | 6,093 | |
Corporate Debt Securities United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,124 | 18,438 | |
Corporate Debt Securities United Kingdom | Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,124 | 18,438 | |
Pooled funds: Index linked U.K. government securities fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,701 | 6,047 | |
Pooled funds: Index linked U.K. government securities fund [Member] | Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,701 | 6,047 | |
Pooled funds: Index linked U.K. long-term government securities fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,645 | 8,716 | |
Pooled funds: Index linked U.K. long-term government securities fund [Member] | Level 2 [Member] | Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 4,645 | $ 8,716 |
Retirement Benefits (Schedul_11
Retirement Benefits (Schedule of Health Care Cost Trend Rates) (Details) - Other Postretirement Benefit Plans [Member] | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year | 6% | 6% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5% | 5% |
Year that the rate reaches the ultimate trend rate | 2027 | 2027 |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends Declared and Paid) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | |||
Dividends declared and paid | $ 44,978 | $ 36,041 | $ 37,664 |
Cash dividends per share | $ 0.7325 | $ 0.5688 | $ 0.6050 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jan. 29, 2020 | Nov. 30, 2019 | Sep. 30, 2022 | Jan. 22, 2022 | Sep. 30, 2021 | 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 | $ 16,261,000 | |||||
Forfeiture rate, Board of Directors | 0% | |||||
Forfeiture rate, non-Board of Directors | 7.30% | |||||
Unrecognized compensation cost is expected to be recognized over a weighted-average period | 1 year 9 months 18 days | |||||
Chief Executive Officer [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period, in years | 4 years | |||||
2017 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of additional shares available for future grants | 1,000,000 | |||||
RSU [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares issued | 54,000 | |||||
Weighted-average exercise price | $ 99.15 | |||||
RSU [Member] | Chief Executive Officer [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number shares grant, value | $ 3,400,000 | |||||
Non Qualified stock Option [Member] | Chief Executive Officer [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number shares grant, value | $ 2,200,000 | |||||
Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period, in years | 4 years | |||||
Vested contractual term, in years | 10 years | |||||
Exercise prices of stock options outstanding | $ 74.40 | $ 68.21 | ||||
Weighted-average exercise price | $ 115.30 | |||||
Stock Options [Member] | ShareBasedC ompensation Award Tranche One [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting rate | 25% | |||||
2017 Authorization [Member] | 2017 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares available for future grants | 2,938,000 | |||||
2019 Authorization [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock repurchase program authorized amount | $ 26,742,000 | $ 45,860,000 | $ 13,346,000 | |||
Repurchase period in years | 3 years | |||||
Stock repurchase program, number of shares authorized to be repurchased | 233,000 | 404,000 | 124,000 | |||
Stock repurchase program, number of shares authorized to be repurchased in-transit | 110,000 | |||||
Stock repurchase program authorized in-transit amount | $ 12,516,000 | |||||
2022 Authorization [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock repurchase program authorized amount | $ 446,042,000 | |||||
Stock repurchase program, number of shares authorized to be repurchased | 3,890,000 | |||||
Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise prices of stock options outstanding | $ 104.77 | |||||
Maximum [Member] | 2019 Authorization [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock repurchase program authorized amount | $ 500,000,000 | |||||
Maximum [Member] | 2022 Authorization [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock repurchase program authorized amount | $ 800,000,000 | |||||
Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise prices of stock options outstanding | $ 33.64 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Assumptions Used in Estimate of Fair Value of Stock Option Awards) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average exercise price per share | $ 115.30 | $ 82.46 | $ 90.52 |
Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (years) | 6 years 6 months | 6 years 6 months | 6 years 4 months 24 days |
Estimated volatility | 33.80% | 33.30% | 25.70% |
Estimated dividend yield | 0.60% | 0.30% | 0.40% |
Risk-free interest rate | 1.10% | 0.40% | 0.40% |
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 | 8 years 8 months 12 days |
Estimated volatility | 36.40% | 36.20% | 35.10% |
Estimated dividend yield | 0.80% | 0.60% | 0.90% |
Risk-free interest rate | 3.50% | 1% | 1.70% |
Stockholders' Equity (Weighted
Stockholders' Equity (Weighted Average Grant Date Fair Value of Options Granted) (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant date fair value of options | $ 41.78 | $ 28.22 | $ 25.41 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Activity for Stock Option Awards) (Details) - Stock Options [Member] shares in Thousands | 12 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of options, beginning balance | shares | 5,339 |
Options granted, Number of options | shares | 514 |
Options exercised, Number of options | shares | (468) |
Options forfeited, Number of options | shares | (44) |
Options expired, Number of options | shares | (2) |
Number of options, ending balance | shares | 5,339 |
Weighted Average Exercise Price Per Share, beginning balance | $ / shares | $ 68.21 |
Options granted, Weighted Average Exercise Price Per Share | $ / shares | 115.30 |
Options exercised, Weighted Average Exercise Price Per Share | $ / shares | 47.23 |
Options forfeited, Weighted Average Exercise Price Per Share | $ / shares | 88.65 |
Options expired, Weighted Average Exercise Price Per Share | $ / shares | 93.79 |
Weighted Average Exercise Price Per Share, ending balance | $ / shares | $ 74.40 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Non-vested Stock Options) (Details) - Stock Options [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Options, beginning balance | 2,063 | ||
Options granted, Number of options | 514 | ||
Options vested, Number of options | (721) | ||
Options forfeited, Number of options | (44) | ||
Number of Options, ending balance | 1,812 | 2,063 | |
Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ 25.77 | ||
Options granted, Weighted-Average Grant Date Fair Value Per Share | 41.78 | $ 28.22 | $ 25.41 |
Options vested, Weighted-Average Grant Date Fair Value Per Share | 26.25 | ||
Options forfeited, Weighted-Average Grant Date Fair Value Per Share | 29.53 | ||
Weighted-Average Grant Date Fair Value Per Share, ending balance | $ 30.03 | $ 25.77 |
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 | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options outstanding, Number of options | 5,339 | 5,339 |
Options vested and exercisable, Number of options | 3,528 | |
Options vested and expected to vest, Number of options | 5,290 | |
Options outstanding, Weighted-Average Exercise Price | $ 74.40 | $ 68.21 |
Options vested and exercisable, Weighted-Average Exercise Price Per Share | 65.83 | |
Options vested and expected to vest, Weighted-Average Exercise Price Per Share | $ 74.17 | |
Options outstanding, Weighted-Average Remaining Life in Years | 5 years 7 months 6 days | |
Options vested and exercisable, Weighted-Average Remaining Life in Years | 4 years 4 months 24 days | |
Options vested and expected to vest, Weighted-Average Remaining Life in Years | 5 years 7 months 6 days | |
Options outstanding, Aggregate Intrinsic Value | $ 64,895 | |
Options vested and exercisable, Aggregate Intrinsic Value | 58,726 | |
Options vested and expected to vest, Aggregate Intrinsic Value | $ 64,786 |
Stockholders' Equity (Other Sto
Stockholders' Equity (Other Stock Option Information) (Details) - Stock Options [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total fair value of stock options vested | $ 18,945 | $ 19,324 | $ 17,423 |
Total intrinsic value of options exercised | 32,709 | 63,667 | 50,059 |
Cash received from exercises of stock options | 21,897 | 34,748 | 24,969 |
Excess tax benefit realized from exercise of stock options | $ 6,472 | $ 12,364 | $ 9,399 |
Stockholders' Equity (Stock-bas
Stockholders' Equity (Stock-based Compensation Expense Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation [Abstract] | |||
Employee stock-based compensation expense | $ 20,109 | $ 21,475 | $ 22,903 |
Commitments and Contingencies_2
Commitments and Contingencies (Future Minimum Unconditional Purchase Obligations) (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2023 | $ 464,073 |
2024 | 29,887 |
2025 | 1,305 |
2026 | 2,156 |
Thereafter | 662 |
Total | $ 498,083 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Officer [Member] | |
Loss Contingencies [Line Items] | |
Period in which payments of termination benefits required for employment terminated following change of control | 2 years |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - segment | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Entity Wide Revenue Major Customer [Line Items] | ||
Number of Reportable Segments | 2 | |
General Electric [Member] | Sales [Member] | Product Concentration Risk [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Percentage of total attributable to major customer | 11% | 11% |
General Electric [Member] | Trade Accounts Receivable [Member] | Product Concentration Risk [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Percentage of total attributable to major customer | 10% | 10% |
Raytheon Technologies [Member] | Sales [Member] | Product Concentration Risk [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Percentage of total attributable to major customer | 11% | 9% |
Raytheon Technologies [Member] | Trade Accounts Receivable [Member] | Product Concentration Risk [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Percentage of total attributable to major customer | 6% | 5% |
Segment Information (Summary of
Segment Information (Summary of Consolidated Net Sales and Earnings by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Consolidated net sales | $ 2,382,790 | $ 2,245,832 | $ 2,495,665 |
Interest Expense, net | (32,731) | (32,787) | (34,047) |
Consolidated earnings before income taxes | 199,898 | 245,799 | 281,881 |
Aerospace [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated net sales | 1,519,322 | 1,404,117 | 1,590,963 |
Industrial [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated net sales | 863,468 | 841,715 | 904,702 |
Operating Segments [Member] | Aerospace [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated net sales | 1,519,322 | 1,404,117 | 1,590,963 |
Segment earnings (loss) | 230,933 | 234,356 | 310,137 |
Operating Segments [Member] | Industrial [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated net sales | 863,468 | 841,715 | 904,702 |
Segment earnings (loss) | 82,788 | 108,672 | 100,321 |
Unallocated Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment earnings (loss) | $ (81,092) | $ (64,442) | $ (94,530) |
Segment Information (Summary _2
Segment Information (Summary of Consolidated Total Assets, Depreciation and Amortization, and Capital Expenditures by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Consolidated total assets | $ 3,806,446 | $ 4,091,004 | $ 3,903,336 |
Property, plant and equipment, net | 910,472 | 950,569 | |
Other assets | 327,419 | 297,024 | |
Depreciation and amortization | 120,628 | 129,524 | 131,158 |
Capital expenditures | 52,868 | 37,689 | 47,087 |
Unallocated Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 111,760 | 106,014 | 106,380 |
Other assets | 540,386 | 832,734 | 515,029 |
Depreciation and amortization | 9,868 | 10,564 | 10,184 |
Capital expenditures | 17,216 | 5,222 | 10,308 |
Aerospace [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated total assets | 1,773,854 | 1,698,833 | 1,752,516 |
Depreciation and amortization | 60,176 | 62,075 | 63,530 |
Capital expenditures | 23,253 | 17,303 | 26,148 |
Industrial [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated total assets | 1,380,446 | 1,453,423 | 1,529,411 |
Depreciation and amortization | 50,584 | 56,885 | 57,444 |
Capital expenditures | $ 12,399 | $ 15,164 | $ 10,631 |
Segment Information (U.S. Gover
Segment Information (U.S. Government Related Sales by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | $ 2,382,790 | $ 2,245,832 | $ 2,495,665 |
Aerospace [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | 1,519,322 | 1,404,117 | 1,590,963 |
Industrial [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | 863,468 | 841,715 | 904,702 |
Direct Sales to U.S. Government [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | 98,025 | 124,564 | 155,283 |
Direct Sales to U.S. Government [Member] | Aerospace [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | 93,266 | 116,832 | 149,416 |
Direct Sales to U.S. Government [Member] | Industrial [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | $ 4,759 | $ 7,732 | $ 5,867 |
Direct Sales to U.S. Government [Member] | Sales [Member] | Product Concentration Risk [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage of attributable to revenue | 4% | 6% | 6% |
Indirect Sales to U.S. Government [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | $ 439,698 | $ 528,560 | $ 553,897 |
Indirect Sales to U.S. Government [Member] | Aerospace [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | 433,646 | 526,118 | 536,424 |
Indirect Sales to U.S. Government [Member] | Industrial [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | $ 6,052 | $ 2,442 | $ 17,473 |
Indirect Sales to U.S. Government [Member] | Sales [Member] | Product Concentration Risk [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage of attributable to revenue | 19% | 23% | 22% |
U.S. Government Related [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | $ 537,723 | $ 653,124 | $ 709,180 |
U.S. Government Related [Member] | Aerospace [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | 526,912 | 642,950 | 685,840 |
U.S. Government Related [Member] | Industrial [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Net sales | $ 10,811 | $ 10,174 | $ 23,340 |
U.S. Government Related [Member] | Sales [Member] | Product Concentration Risk [Member] | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Percentage of attributable to revenue | 23% | 29% | 28% |