Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2023 | Aug. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-08408 | |
Entity Registrant Name | WOODWARD, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-1984010 | |
Entity Address, Address Line One | 1081 Woodward Way | |
Entity Address, City or Town | Fort Collins | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80524 | |
City Area Code | 970 | |
Local Phone Number | 482-5811 | |
Title of 12(b) Security | Common Stock, par value $0.001455 per share | |
Trading Symbol | WWD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,417,600 | |
Amendment Flag | false | |
Entity Central Index Key | 0000108312 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 800,663 | $ 614,332 | $ 2,137,496 | $ 1,742,757 |
Costs and expenses: | ||||
Cost of goods sold | 596,251 | 480,403 | 1,649,473 | 1,352,979 |
Selling, general and administrative expenses | 64,983 | 46,490 | 203,748 | 152,920 |
Research and development costs | 35,033 | 32,224 | 100,034 | 90,000 |
Restructuring charges | 5,172 | |||
Interest expense | 12,175 | 8,533 | 36,162 | 25,036 |
Interest income | (516) | (353) | (1,390) | (1,494) |
Other (income) expense, net | (13,001) | (3,252) | (33,431) | (18,813) |
Total costs and expenses | 694,925 | 564,045 | 1,959,768 | 1,600,628 |
Earnings before income taxes | 105,738 | 50,287 | 177,728 | 142,129 |
Income tax expense | 21,139 | 10,841 | 28,012 | 24,472 |
Net earnings | $ 84,599 | $ 39,446 | $ 149,716 | $ 117,657 |
Earnings per share: | ||||
Basic earnings per share | $ 1.41 | $ 0.65 | $ 2.50 | $ 1.90 |
Diluted earnings per share | $ 1.37 | $ 0.64 | $ 2.44 | $ 1.84 |
Weighted Average Common Shares Outstanding: | ||||
Basic | 60,056 | 60,506 | 59,843 | 62,052 |
Diluted | 61,591 | 62,088 | 61,250 | 63,937 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Condensed Consolidated Statements of Comprehensive Earnings | ||||
Net earnings | $ 84,599 | $ 39,446 | $ 149,716 | $ 117,657 |
Other comprehensive earnings: | ||||
Foreign currency translation adjustments | (5,654) | (27,648) | 33,068 | (34,707) |
Net gain (loss) on foreign currency transactions designated as hedges of net investments in foreign subsidiaries | 139 | 2,887 | (4,293) | 4,631 |
Taxes on changes in foreign currency translation adjustments | (353) | (2,424) | 1,919 | (3,873) |
Foreign currency translation and transactions adjustments, net of tax | (5,868) | (27,185) | 30,694 | (33,949) |
Unrealized (loss) gain on fair value adjustment of derivative instruments | (9,389) | 34,207 | (44,073) | 58,987 |
Reclassification of net realized loss (gain) on derivatives to earnings | (1,429) | (26,968) | 44,377 | (43,299) |
Taxes on changes in derivative transactions | 433 | (254) | 99 | (549) |
Derivative adjustments, net of tax | (10,385) | 6,985 | 403 | 15,139 |
Amortization of pension and other postretirement plan: | ||||
Net prior service cost | 179 | 252 | 539 | 754 |
Net (gain) loss | (212) | 177 | (615) | 551 |
Foreign currency exchange rate changes on pension and other postretirement benefit plan liabilities | (116) | 1,834 | 395 | 2,456 |
Taxes on changes in pension and other postretirement benefit plan liability adjustments, net of foreign currency exchange rate changes | 92 | (668) | 219 | (1,074) |
Pension and other postretirement benefit plan adjustments, net of tax | (57) | 1,595 | 538 | 2,687 |
Total comprehensive earnings | $ 68,289 | $ 20,841 | $ 181,351 | $ 101,534 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 114,107 | $ 107,844 |
Accounts receivable, less allowance for uncollectible amounts of $8,700 and $3,922, respectively | 732,805 | 609,964 |
Inventories | 531,834 | 514,287 |
Income taxes receivable | 37,973 | 5,179 |
Other current assets | 73,758 | 74,695 |
Total current assets | 1,490,477 | 1,311,969 |
Property, plant and equipment, net | 910,544 | 910,472 |
Goodwill | 798,575 | 772,559 |
Intangible assets, net | 472,894 | 460,580 |
Deferred income tax assets | 25,133 | 23,447 |
Other assets | 311,940 | 327,419 |
Total assets | 4,009,563 | 3,806,446 |
Current liabilities: | ||
Short-term debt | 23,500 | 66,800 |
Current portion of long-term debt | 75,914 | 856 |
Accounts payable | 223,091 | 230,519 |
Income taxes payable | 43,220 | 34,655 |
Accrued liabilities | 220,934 | 206,283 |
Total current liabilities | 586,659 | 539,113 |
Long-term debt, less current portion | 651,443 | 709,760 |
Deferred income tax liabilities | 138,180 | 127,195 |
Other liabilities | 547,491 | 529,256 |
Total liabilities | 1,923,773 | 1,905,324 |
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 | 326,712 | 293,540 |
Accumulated other comprehensive losses | (60,928) | (92,563) |
Deferred compensation | 2,817 | 6,781 |
Retained earnings | 2,839,187 | 2,727,233 |
Stockholders' equity | 3,107,894 | 2,935,097 |
Treasury stock at cost, 12,754 shares and 13,207 shares, respectively | (1,019,287) | (1,027,194) |
Treasury stock held for deferred compensation, at cost, 56 shares and, 139 shares, respectively | (2,817) | (6,781) |
Total stockholders' equity | 2,085,790 | 1,901,122 |
Total liabilities and stockholders' equity | $ 4,009,563 | $ 3,806,446 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Current assets: | ||
Allowance, accounts receivable | $ 8,700 | $ 3,922 |
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 | 12,754,000 | 13,207,000 |
Treasury stock held for deferred compensation, shares | 56,000 | 139,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 149,716 | $ 117,657 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 89,301 | 91,258 |
Net loss (gain) on sales of assets and businesses | 672 | (1,545) |
Stock-based compensation | 19,369 | 17,136 |
Deferred income taxes | 545 | (56) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (69,628) | (6,745) |
Unbilled receivables (contract assets) | (49,890) | (64,892) |
Costs to fulfill a contract | (9,279) | (13,541) |
Inventories | (7,443) | (93,818) |
Accounts payable and accrued liabilities | 23,303 | 36,117 |
Contract liabilities | 15,229 | 8,420 |
Income taxes | (29,635) | 5,277 |
Retirement benefit obligations | (779) | (3,442) |
Other | 24,149 | (5,810) |
Net cash provided by operating activities | 155,630 | 86,016 |
Cash flows from investing activities: | ||
Payments for purchase of property, plant, and equipment | (57,142) | (37,105) |
Proceeds from sale of assets | 477 | 4 |
Proceeds from sale of the renewable power systems business and other related business | 6,000 | |
Business acquisition, net of cash acquired | 878 | |
Payments for short-term investments | (6,109) | (9,619) |
Proceeds from sales of short-term investments | 7,692 | 11,305 |
Net cash (used in) investing activities | (54,204) | (29,415) |
Cash flows from financing activities: | ||
Cash dividends paid | (37,762) | (33,572) |
Proceeds from sales of treasury stock | 26,888 | 20,283 |
Payments for repurchases of common stock | (26,369) | (440,233) |
Borrowings on revolving lines of credit and short-term borrowings | 1,538,900 | 477,400 |
Payments on revolving lines of credit and short-term borrowings | (1,582,200) | (428,200) |
Payments of debt financing costs | (2,236) | |
Payments of long-term debt and finance lease obligations | (536) | (644) |
Net cash (used in) financing activities | (83,315) | (404,966) |
Effect of exchange rate changes on cash and cash equivalents | (11,848) | (396) |
Net change in cash and cash equivalents | 6,263 | (348,761) |
Cash and cash equivalents, including restricted cash, at beginning of year | 107,844 | 448,462 |
Cash and cash equivalents, including restricted cash, at end of period | $ 114,107 | $ 99,701 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock at Cost [Member] | Treasury Stock Held for Deferred Compensaton [Member] | Additional Paid-in Capital [Member] | Foreign Currency Translation Adjustments [Member] | Unrealized Derivative Gains (Losses) [Member] | Minimum Retirement Benefit Liability Adjustments [Member] | Total Accumulated Other Comprehensive (Loss) Earnings [Member] | Deferred Compensation [Member] | Retained Earnings [Member] |
Balances at Sep. 30, 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 | ||||||||||
Balance, Treasury Stock, shares at Sep. 30, 2021 | (9,702,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, shares at Sep. 30, 2021 | (167,000) | ||||||||||
Net earnings | 117,657 | 117,657 | |||||||||
Other comprehensive earnings (loss), net of tax | (16,123) | (33,949) | 15,139 | 2,687 | (16,123) | ||||||
Cash dividends paid | (33,572) | (33,572) | |||||||||
Sales of treasury stock | 20,283 | $ 18,855 | 1,428 | ||||||||
Sales of treasury stock, shares | 423,000 | ||||||||||
Common shares issued for benefit plans | 17,168 | $ 6,567 | 10,601 | ||||||||
Common shares issued for benefit plans, shares | 150,000 | ||||||||||
Purchases of treasury stock | (427,717) | $ (427,717) | |||||||||
Purchases of treasury stock, shares | (3,674,000) | ||||||||||
Stock-based compensation | 17,136 | 17,136 | |||||||||
Purchases/transfers of stock by/to deferred compensation | $ (183) | 183 | |||||||||
Purchases and transfer of stock by/to deferred compensation, shares | (2,000) | ||||||||||
Distribution of stock from deferred compensation plan | $ 1,371 | (1,371) | |||||||||
Distribution of stock from deferred compensation plan, shares | 29,000 | ||||||||||
Balances at Jun. 30, 2022 | 1,909,613 | $ 106 | $ (984,249) | $ (6,761) | 290,900 | (66,853) | (10,458) | (4,431) | (81,742) | 6,761 | 2,684,598 |
Balance, Common Stock, shares at Jun. 30, 2022 | 72,960,000 | ||||||||||
Balance, Treasury Stock, shares at Jun. 30, 2022 | (12,803,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, shares at Jun. 30, 2022 | (140,000) | ||||||||||
Balances at Mar. 31, 2022 | 2,051,879 | $ 106 | $ (829,446) | $ (6,678) | 287,766 | (39,668) | (17,443) | (6,026) | (63,137) | 6,678 | 2,656,590 |
Balance, Common Stock, shares at Mar. 31, 2022 | 72,960,000 | ||||||||||
Balance, Treasury Stock, shares at Mar. 31, 2022 | (11,427,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, shares at Mar. 31, 2022 | (140,000) | ||||||||||
Net earnings | 39,446 | 39,446 | |||||||||
Other comprehensive earnings (loss), net of tax | 18,605 | (27,185) | 6,985 | 1,595 | (18,605) | ||||||
Cash dividends paid | (11,438) | (11,438) | |||||||||
Sales of treasury stock | 770 | $ 815 | (45) | ||||||||
Sales of treasury stock, shares | 18,000 | ||||||||||
Purchases of treasury stock | (155,618) | $ (155,618) | |||||||||
Purchases of treasury stock, shares | (1,394,000) | ||||||||||
Stock-based compensation | 3,179 | 3,179 | |||||||||
Purchases/transfers of stock by/to deferred compensation | $ (68) | 68 | |||||||||
Purchases and transfer of stock by/to deferred compensation, shares | (1,000) | ||||||||||
Distribution of stock from deferred compensation plan | $ (15) | 15 | |||||||||
Distribution of stock from deferred compensation plan, shares | 1,000 | ||||||||||
Balances at Jun. 30, 2022 | 1,909,613 | $ 106 | $ (984,249) | $ (6,761) | 290,900 | (66,853) | (10,458) | (4,431) | (81,742) | 6,761 | 2,684,598 |
Balance, Common Stock, shares at Jun. 30, 2022 | 72,960,000 | ||||||||||
Balance, Treasury Stock, shares at Jun. 30, 2022 | (12,803,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, shares at Jun. 30, 2022 | (140,000) | ||||||||||
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) | |||||||||
Net earnings | $ 149,716 | 149,716 | |||||||||
Other comprehensive earnings (loss), net of tax | 31,635 | 30,694 | 403 | 538 | 31,635 | ||||||
Cash dividends paid | (37,762) | 37,762 | |||||||||
Sales of treasury stock | 28,612 | $ 25,752 | 2,860 | ||||||||
Sales of treasury stock, shares | 538,000 | ||||||||||
Common shares issued for benefit plans | 19,467 | $ 8,524 | 10,943 | ||||||||
Common shares issued for benefit plans, shares | 189,000 | ||||||||||
Purchases of treasury stock | (26,369) | $ (26,369) | |||||||||
Purchases of treasury stock, shares | (274,000) | ||||||||||
Stock-based compensation | 19,369 | 19,369 | |||||||||
Purchases/transfers of stock by/to deferred compensation | $ (146) | 146 | |||||||||
Purchases and transfer of stock by/to deferred compensation, shares | (1,000) | ||||||||||
Distribution of stock from deferred compensation plan | $ 4,110 | (4,110) | |||||||||
Distribution of stock from deferred compensation plan, shares | 84,000 | ||||||||||
Balances at Jun. 30, 2023 | $ 2,085,790 | $ 106 | $ (1,019,287) | $ (2,817) | 326,712 | (55,800) | (5,812) | 684 | (60,928) | 2,817 | 2,839,187 |
Balance, Common Stock, shares at Jun. 30, 2023 | 72,960,000 | 72,960,000 | |||||||||
Balance, Treasury Stock, shares at Jun. 30, 2023 | (12,754,000) | (12,754,000) | |||||||||
Balance, Treasury stock held for deferred compensation, shares at Jun. 30, 2023 | (56,000) | (56,000) | |||||||||
Balances at Mar. 31, 2023 | $ 2,012,054 | $ 106 | $ (1,032,688) | $ (3,319) | 321,441 | (49,932) | 4,573 | 741 | (44,618) | 3,319 | 2,767,813 |
Balance, Common Stock, shares at Mar. 31, 2023 | 72,960,000 | ||||||||||
Balance, Treasury Stock, shares at Mar. 31, 2023 | (13,022,000) | ||||||||||
Balance, Treasury stock held for deferred compensation, shares at Mar. 31, 2023 | (67,000) | ||||||||||
Net earnings | 84,599 | 84,599 | |||||||||
Other comprehensive earnings (loss), net of tax | (16,310) | (5,868) | (10,385) | (57) | (16,310) | ||||||
Cash dividends paid | (13,225) | (13,225) | |||||||||
Sales of treasury stock | 14,841 | $ 13,401 | 1,440 | ||||||||
Sales of treasury stock, shares | 268,000 | ||||||||||
Stock-based compensation | 3,831 | 3,831 | |||||||||
Purchases/transfers of stock by/to deferred compensation | $ (34) | 34 | |||||||||
Distribution of stock from deferred compensation plan | $ 536 | (536) | |||||||||
Distribution of stock from deferred compensation plan, shares | 11,000 | ||||||||||
Balances at Jun. 30, 2023 | $ 2,085,790 | $ 106 | $ (1,019,287) | $ (2,817) | $ 326,712 | $ (55,800) | $ (5,812) | $ 684 | $ (60,928) | $ 2,817 | $ 2,839,187 |
Balance, Common Stock, shares at Jun. 30, 2023 | 72,960,000 | 72,960,000 | |||||||||
Balance, Treasury Stock, shares at Jun. 30, 2023 | (12,754,000) | (12,754,000) | |||||||||
Balance, Treasury stock held for deferred compensation, shares at Jun. 30, 2023 | (56,000) | (56,000) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement Of Stockholders Equity [Abstract] | ||||
Cash dividends per share | $ 0.2200 | $ 0.1900 | $ 0.6300 | $ 0.5425 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of presentation The Condensed Consolidated Financial Statements of Woodward, Inc. (“Woodward” or the “Company”) as of June 30, 2023 and for the three and nine months ended June 30, 2023 and 2022, included herein, have not been audited by an independent registered public accounting firm. These unaudited Condensed Consolidated Financial Statements reflect all normal recurring adjustments that, in the opinion of management, are necessary to present fairly Woodward’s financial position as of June 30, 2023, and the statements of earnings, comprehensive earnings, cash flows, and changes in stockholders’ equity for the periods presented herein. The results of operations for the three and nine months ended June 30, 2023 and 2022 are not necessarily indicative of the operating results to be expected for other interim periods or for the full fiscal year. Dollar and share amounts contained in these unaudited Condensed Consolidated Financial Statements are in thousands, except per share amounts, unless otherwise noted. The unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in Woodward’s most recent Annual Report on Form 10-K filed with the SEC and other financial information filed with the SEC. Management is required to use estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures, in the preparation of the unaudited Condensed Consolidated Financial Statements included herein. Significant estimates in these unaudited Condensed Consolidated Financial Statements include allowances for credit losses; net realizable value of inventories; variable consideration including customer rebates earned and payable and early payment discounts; warranty reserves; useful lives of property and identifiable intangible assets; the evaluation of impairments of property, intangible assets, and goodwill; the provision for income tax and related valuation reserves; the valuation of derivative instruments; assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans; the valuation of stock compensation instruments granted to employees, board members and any other eligible recipients; estimates of incremental borrowing rates used when estimating the present value of future lease payments; assumptions used when including renewal options or non-exercise of termination options in lease terms; estimates of total lifetime sales used in the recognition of revenue of deferred material rights and balance sheet classification of the related contract liability; estimates of total sales contract costs when recognizing revenue under the cost-to-cost method; and contingencies. Actual results could vary from Woodward’s estimates. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Jun. 30, 2023 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
New Accounting Standards | Note 2. New accounting standards From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”). In the time since the Company filed its most recent Annual Report on Form 10-K for the fiscal year ended September 30, 2022 , no new accounting standards have been issued, or are pending issuance, that are expected to have a material impact on the Condensed Consolidated Financial Statements upon adoption. |
Revenue
Revenue | 9 Months Ended |
Jun. 30, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 3. Revenue The amount of revenue recognized as point in time or over time follows: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Point in time $ 194,807 $ 208,597 $ 403,404 $ 154,323 $ 119,808 $ 274,131 Over time 285,724 111,535 397,259 247,389 92,812 340,201 Total net sales $ 480,531 $ 320,132 $ 800,663 $ 401,712 $ 212,620 $ 614,332 Nine Months Ended June 30, 2023 Nine Months Ended June 30, 2022 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Point in time $ 552,895 $ 526,096 $ 1,078,991 $ 428,212 $ 367,019 $ 795,231 Over time 760,338 298,167 1,058,505 682,692 264,834 947,526 Total net sales $ 1,313,233 $ 824,263 $ 2,137,496 $ 1,110,904 $ 631,853 $ 1,742,757 Accounts Receivable Accounts receivable consisted of the following: June 30, 2023 September 30, 2022 Billed receivables Trade accounts receivable $ 408,601 $ 359,364 Other (Chinese financial institutions) 38,098 9,405 Total billed receivables 446,699 368,769 Current unbilled receivables (contract assets) 294,806 245,117 Total accounts receivable 741,505 613,886 Less: Allowance for uncollectible amounts ( 8,700 ) ( 3,922 ) Total accounts receivable, net $ 732,805 $ 609,964 As of June 30, 2023, “Other assets” on the Condensed Consolidated Balance Sheets includes $ 10,099 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $ 6,649 as of September 30, 2022. Accounts receivable in Woodward’s Condensed Consolidated Financial Statements represent the net amount expected to be collected, and an allowance for uncollectible amounts related to credit losses is established based on expected losses. Expected losses are estimated by reviewing specific customer accounts, taking into consideration accounts receivable aging, credit risk of the customers, and historical payment history, as well as current and forecasted economic conditions and other relevant factors. The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Balance, beginning $ 9,949 $ 3,141 $ 3,922 $ 3,664 Changes in estimates 77 356 6,463 783 Write-offs ( 1,271 ) — ( 1,601 ) ( 43 ) Other 1 ( 55 ) ( 454 ) ( 84 ) ( 1,361 ) Balance, ending $ 8,700 $ 3,043 $ 8,700 $ 3,043 (1) Includes effects of foreign exchange rate changes during the period. Contract liabilities Contract liabilities consisted of the following: June 30, 2023 September 30, 2022 Current Noncurrent Current Noncurrent Deferred revenue from material rights from GE joint venture formation $ 6,049 $ 235,686 $ 5,754 $ 234,516 Deferred revenue from advanced invoicing and/or prepayments from customers 4,771 3,277 4,120 38 Liability related to customer supplied inventory 12,841 — 12,442 — Deferred revenue from material rights related to engineering and development funding 7,906 173,645 8,347 161,791 Net contract liabilities $ 31,567 $ 412,608 $ 30,663 $ 396,345 Woodward recognized revenue of $ 4,645 in the three months and $ 18,829 in the nine months ended June 30, 2023 from contract liabilities balances recorded as of October 1, 2022, compared to $ 5,140 in the three months ended and $ 18,359 in the nine months ended June 30, 2022 from contract liabilities balances recorded as of October 1, 2021. Remaining performance obligations Remaining performance obligations related to the aggregate amount of the total contract transaction price of firm orders for which the performance obligation has not yet been recognized in revenue as of June 30, 2023 was $ 2,120,096 , compared to $ 1,558,588 as of September 30, 2022 , the majority of which relates to Woodward’s Aerospace segment in both periods. Woodward expects to recognize almost all of these remaining performance obligations within two years after June 30, 2023. Remaining performance obligations related to material rights that have not yet been recognized in revenue as of June 30, 2023 was $ 481,417 , compared to $ 448,370 as of September 30, 2022, of which $ 4,594 is expected to be recognized in the rem ainder of fiscal year 2023 , $ 15,510 is expected to be rec ognized in fiscal year 2024 , and the remaining 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 as Woodward believes this best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. Revenue by primary market for the Aerospace reportable segment was as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Commercial OEM $ 186,173 $ 131,968 $ 484,319 $ 359,683 Commercial aftermarket 139,518 108,695 405,606 303,335 Defense OEM 101,008 115,205 278,577 318,392 Defense aftermarket 53,832 45,844 144,731 129,494 Total Aerospace segment net sales $ 480,531 $ 401,712 $ 1,313,233 $ 1,110,904 Revenue by primary market for the Industrial reportable segment was as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Reciprocating engines $ 242,040 $ 154,090 $ 612,655 $ 469,087 Industrial turbines 78,092 58,530 211,608 162,766 Total Industrial segment net sales $ 320,132 $ 212,620 $ 824,263 $ 631,853 The customers who each account for approximately 10% or more of net sales of each of Woodward’s reportable segments are as follows: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Aerospace Raytheon Technologies, General Electric Company, The Boeing Company, Raytheon Technologies, Industrial Weichai Westport, Rolls-Royce PLC, Caterpillar, Inc. Rolls-Royce PLC, Wartsila, Caterpillar, Inc. Nine Months Ended June 30, 2023 Nine Months Ended June 30, 2022 Aerospace Raytheon Technologies, General Electric Company, Raytheon Technologies, The Boeing Company, Industrial Rolls-Royce PLC, Caterpillar, Inc. Rolls-Royce PLC, Wartsila, Caterpillar, Inc. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4. Earnings per share Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share reflects the weighted-average number of shares outstanding after consideration of the dilutive effect of stock options and restricted stock. The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Numerator: Net earnings $ 84,599 $ 39,446 $ 149,716 $ 117,657 Denominator: Basic shares outstanding 60,056 60,506 59,843 62,052 Dilutive effect of stock options and restricted stock 1,535 1,582 1,407 1,885 Diluted shares outstanding 61,591 62,088 61,250 63,937 Income per common share: Basic earnings per share $ 1.41 $ 0.65 $ 2.50 $ 1.90 Diluted earnings per share $ 1.37 $ 0.64 $ 2.44 $ 1.84 The following stock option grants were outstanding but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Options 564 1,048 1,554 479 Weighted-average option price $ 114.70 $ 110.49 $ 102.06 $ 117.45 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: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Weighted-average treasury stock shares held for deferred compensation obligations 62 140 96 154 |
Leases
Leases | 9 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease | Note 5. Leases Lessee arrangements Woodward has entered into operating leases for certain facilities and equipment with terms in excess of one year under agreements that expire at various dates. Some leases require the payment of property taxes, insurance, maintenance costs, or other similar costs in addition to rental payments. Woodward has also entered into finance leases for equipment with terms in excess of one year under agreements that expire at various dates. Lease-related assets and liabilities were as follows: Classification on the Condensed Consolidated Balance Sheets June 30, 2023 September 30, 2022 Assets: Operating lease Other assets $ 25,100 $ 25,144 Finance lease Property, plant and equipment, net 4,396 5,474 Total lease assets $ 29,496 $ 30,618 Current liabilities: Operating lease Accrued liabilities $ 4,764 $ 4,587 Finance lease Current portion of long-term debt 914 856 Noncurrent liabilities: Operating lease Other liabilities 20,924 21,443 Finance lease Long-term debt, less current portion 3,770 4,405 Total lease liabilities $ 30,372 $ 31,291 Lease-related expenses were as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Operating lease expense $ 1,563 $ 1,549 $ 4,636 $ 4,809 Amortization of finance lease assets 251 116 663 290 Interest on finance lease liabilities 43 14 117 30 Variable lease expense 225 226 680 832 Short-term lease expense 44 44 152 134 Sublease (income) 1 — — — ( 192 ) Total lease expense $ 2,126 $ 1,949 $ 6,248 $ 5,903 (1) Relates to two separate subleases Woodward entered into for a leased manufacturing building in Niles, Illinois, each of which expired during fiscal year 2022. Lease-related supplemental cash flow information was as follows: Nine Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 3,879 $ 4,136 Operating cash flows for finance leases 117 30 Financing cash flows for finance leases 535 690 Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases 1,841 9,997 Finance leases 48 1,260 Lessor arrangements Woodward has assessed its manufacturing contracts and concluded that certain of the contracts for the manufacture of customer products met the criteria to be considered a leasing arrangement (“embedded leases”) with Woodward as the lessor. The specific manufacturing contracts that met the criteria were those that utilized Woodward property, plant, and equipment and which are substantially (more than 90%) dedicated to the manufacturing of the product(s) for a single customer. Woodward has dedicated manufacturing lines with four of its customers representing embedded leases, all of which qualified as operating leases with undefined quantities of future customer purchase commitments. Although Woodward expects to allocate some portion of future net sales to these customers to embedded lessor arrangements, it cannot provide expected future undiscounted lease payments from property, plant, and equipment leased to customers as of June 30, 2023. If, in the future, customers reduce purchases of related products from Woodward, the Company believes it will derive additional value from the underlying equipment by repurposing its use to support other customer arrangements. Revenue from contracts with customers that included embedded operating leases, which is included in “Net sales” in the Condensed Consolidated Statements of Earnings, was $ 1,466 for the three months and $ 4,252 for the nine months ended June 30, 2023, compared to $ 1,303 for the three months and $ 3,969 for the nine months ended June 30, 2022. The carrying amount of property, plant, and equipment leased to others through embedded leasing arrangements, included in “Property, plant, and equipment, net” on the Condensed Consolidated Balance Sheets, follows: June 30, 2023 September 30, 2022 Property, plant and equipment leased through embedded leasing arrangements $ 46,916 $ 44,912 Less accumulated depreciation ( 28,249 ) ( 25,508 ) Property, plant and equipment leased through embedded leasing arrangements, net $ 18,667 $ 19,404 |
Joint Venture
Joint Venture | 9 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Joint Venture | Note 6. Joint venture In fiscal year 2016, Woodward and General Electric Company (“GE”), acting through its GE Aviation business unit, consummated the formation of a strategic joint venture between Woodward and GE (the “JV”) to develop, manufacture, and support fuel systems for specified existing and all future GE commercial aircraft engines that produce thrust in excess of fifty thousand pounds. Unamortized deferred revenue from material rights in connection with the JV formation included: June 30, 2023 September 30, 2022 Accrued liabilities $ 6,049 $ 5,754 Other liabilities 235,686 234,516 Amortization of the deferred revenue (material right) recognized as an increase to sales was $ 1,395 for the three months and $ 3,429 for the nine months ended June 30, 2023, and $ 905 for the three months and $ 2,632 for the nine months ended June 30, 2022. As part of the JV formation, GE pays contingent consideration to Woodward consisting of fifteen annual payments of $ 4,894 per year, which began in the third quarter of fiscal year 2017, subject to certain claw-back conditions. Woodward received its annual payments of $ 4,894 during the three months ended March 31, 2023 and 2022, which were recorded as deferred income and included in “Net cash provided by operating activities” on the Condensed Consolidated Statements of Cash Flows. Other income related to Woodward’s equity interest in the earnings of the JV was as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Other income $ 8,836 $ 3,860 $ 21,877 $ 12,675 Cash distributions to Woodward from the JV, recognized in “Other, net” in “Net cash provided by operating activities” on the Condensed Consolidated Statements of Cash Flows, were as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Cash distributions $ 9,000 $ 4,000 $ 19,000 $ 13,000 Net sales to the JV were as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Net sales 1 $ 11,568 $ 6,698 $ 25,365 $ 19,245 (1) Net sales included a reduction of $ 14,396 for the three months and $ 34,854 for the nine months ended June 30, 2023 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $ 7,912 for the three months and $ 21,058 for the nine months ended June 30, 2022 . The Condensed Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows: June 30, 2023 September 30, 2022 Accounts receivable $ 6,756 $ 4,172 Accounts payable 5,092 4,069 Other assets 11,059 8,181 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Note 7. Financial instruments and fair value measurements The table below presents information about Woodward’s financial assets that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value as defined by the U.S. GAAP fair value hierarchy. At June 30, 2023 At September 30, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Investments in term deposits with foreign banks $ 28,313 $ — $ — $ 28,313 $ 37,605 $ — $ — $ 37,605 Equity securities 26,549 — — 26,549 22,800 — — 22,800 Cross-currency interest rate swaps — — — — — 38,168 — 38,168 Total financial assets $ 54,862 $ — $ — $ 54,862 $ 60,405 $ 38,168 $ — $ 98,573 Financial liabilities: Cross-currency interest rate swaps $ — $ 1,987 $ — $ 1,987 $ — $ — $ — $ — Total financial liabilities $ — $ 1,987 $ — $ 1,987 $ — $ — $ — $ — Investments in term deposits with foreign banks: Woodward’s foreign subsidiaries sometimes invest excess cash in various highly liquid financial instruments that Woodward believes are with creditworthy financial institutions. Such investments are reported in “Cash and cash equivalents” at fair value, with realized gains from interest income recognized in earnings. The carrying value of Woodward’s investments in term deposits with foreign banks are considered equal to the fair value given the highly liquid nature of the investments. Equity securities: Woodward holds marketable equity securities, through investments in various mutual funds, related to its deferred compensation program. Based on Woodward’s intentions regarding these instruments, marketable equity securities are classified as trading securities. The trading securities are reported at fair value, with realized gains and losses recognized in “Other (income) expense, net” on the Condensed Consolidated Statements of Earnings. The trading securities are included in “Other assets” in the Condensed Consolidated Balance Sheets. The fair values of Woodward’s trading securities are based on the quoted market prices for the net asset value of the various mutual funds. Cross-currency interest rate swaps: Woodward holds cross-currency interest rate swaps, which are accounted for at fair value. The swaps in an asset position are included in “Other current assets” and “Other assets,” and swaps in a liability position are included in “Accrued liabilities” and “Other liabilities” in the Condensed Consolidated Balance Sheets. The fair values of Woodward’s cross-currency interest rate swaps are determined using a market approach that is based on observable inputs other than quoted market prices, including contract terms, interest rates, currency rates, and other market factors. Cash, trade accounts receivable, accounts payable, and short-term borrowings are not remeasured to fair value, as the carrying cost of each approximates its respective fair value. The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Condensed Consolidated Balance Sheets were as follows: At June 30, 2023 At September 30, 2022 Fair Value Estimated Carrying Estimated Carrying Assets: Notes receivable from municipalities 2 $ 8,974 $ 8,794 $ 9,010 $ 8,992 Investments in short-term time deposits 2 6,159 6,189 8,026 7,893 Liabilities: Long-term debt 2 674,844 728,590 646,696 712,054 In connection with certain economic incentives related to Woodward’s development of a second campus in the greater-Rockford, Illinois area for its Aerospace segment and Woodward’s development of a new campus at its corporate headquarters in Fort Collins, Colorado, Woodward received long-term notes from municipalities within the states of Illinois and Colorado. The fair value of the long-term notes was estimated based on a model that discounted future principal and interest payments received at an interest rate available to Woodward at the end of the period for similarly rated municipal notes of similar maturity, which is a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the long-term notes were 2.7 % at June 30, 2023 and 3.5 % at September 30, 2022. From time to time, certain of Woodward’s foreign subsidiaries will invest excess cash in short-term time deposits with a fixed maturity date of longer than three months but less than one year from the date of the deposit. Woodward believes that the investments are with creditworthy financial institutions. The fair value of the investments in short-term time deposits was estimated based on a model that discounted future principal and interest payments to be received at an interest rate available to the foreign subsidiary entering into the investment for similar short-term time deposits of similar maturity. This was determined to be a level 2 input as defined by the U.S. GAAP fair value hierarchy. The interest rates used to estimate the fair value of the short-term time deposits were 7.0 % at June 30, 2023 and 6.1 % at September 30, 2022. The fair value of long-term debt was estimated based on the prices of debt of comparable type and maturity available to Woodward at the end of the period, 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 June 30, 2023 and September 30, 2022. Woodward does not have expected credit losses related to any financial assets that are not required to be remeasured at fair value. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Jun. 30, 2023 | |
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 2020, Woodward entered into a floating-rate cross-currency interest rate swap (the “2020 Floating-Rate Cross-Currency Swap”), with a notional value of $ 45,000 , and five fixed-rate cross-currency interest rate swap agreements (the “2020 Fixed-Rate Cross-Currency Swaps”), with an aggregate notional value of $ 400,000 , which effectively reduced the interest rates on the underlying fixed and floating-rate debt, respectively, under the 2018 Notes (as defined in Note 15, Credit Facilities, short-term borrowings and long-term debt, in the Notes to the Consolidated Financial Statements included in Part II, Item 8 of Woodward’s most recently filed Form 10-K) and Woodward’s then existing revolving credit agreement. The net interest income of the cross-currency interest rate swaps is recorded as a reduction to “Interest expense” in Woodward’s Condensed Consolidated Statements of Earnings. The 2020 Floating-Rate Cross-Currency Swap expired on May 31, 2023 and, as such, is no longer recorded on the Condensed Consolidated Balance Sheets. During the nine months ended June 30, 2023, $ 63 was reclassified from Accumulated other comprehensive losses to interest expense on the Condensed Consolidated Statement of Earnings. As of June 30, 2023 , the total notional value of the 2020 Fixed-Rate Cross-Currency Swaps was $ 400,000 . See Note 7, Financial Instruments and fair value measurements for the related fair value of the derivative instruments as of June 30, 2023. Derivatives instruments in fair value hedging relationships In May 2020, Woodward entered into a US dollar denominated intercompany loan payable with identical terms and notional value as the 2020 Floating-Rate Cross-Currency Swap, together with a reciprocal intercompany floating-rate cross-currency interest rate swap. The agreements were entered into by Woodward Barbados Euro Financing SRL (“Euro Barbados”), a wholly owned subsidiary of Woodward. The US dollar denominated intercompany loan and reciprocal intercompany floating-rate cross-currency interest rate swap are designated as a fair value hedge under the criteria prescribed in ASC 815. The objective of the derivative instrument is to hedge against the foreign currency exchange risk attributable to the spot remeasurement of the US dollar denominated intercompany loan, as Euro Barbados maintains a Euro functional currency. For each floating-rate intercompany cross-currency interest rate swap, only the change in the fair value related to the cross-currency basis spread, or excluded component, of the derivative instrument is recognized in accumulated other comprehensive income (“OCI”). The remaining change in the fair value of the derivative instrument is recognized in foreign currency transaction gain or loss included in “Selling, general and administrative costs” in Woodward’s Condensed Consolidated Statements of Earnings. The change in the fair value of the derivative instrument in foreign currency transaction gain or loss offsets the change in the spot remeasurement of the intercompany Euro and US dollar denominated loans. Hedge effectiveness is assessed based on the fair value changes of the derivative instrument, after excluding any fair value changes related to the cross-currency basis spread. The initial cost of the cross-currency basis spread is recorded in earnings each period through the swap accrual process. There are no credit-risk-related contingent features associated with the intercompany floating-rate cross-currency interest rate swap. Derivative instruments in cash flow hedging relationships In May 2020, Woodward entered into five US dollar intercompany loans payable, with identical terms and notional values of each tranche of the 2020 Fixed-Rate Cross-Currency Swaps, together with reciprocal fixed-rate intercompany cross-currency interest rate swaps. The agreements were entered into by Euro Barbados and are designated as cash flow hedges under the criteria prescribed in ASC 815. The objective of these derivative instruments is to hedge the risk of variability in cash flows attributable to the foreign currency exchange risk of cash flows for future principal and interest payments associated with the US dollar denominated intercompany loans over a thirteen-year period, as Euro Barbados maintains a Euro functional currency. For each of the fixed-rate intercompany cross-currency interest rate swaps, changes in the fair values of the derivative instruments are recognized in accumulated OCI and reclassified to foreign currency transaction gain or loss included in “Selling, general and administrative costs” in Woodward’s Condensed Consolidated Statements of Earnings. Reclassifications out of accumulated OCI of the change in fair value occur each reporting period based upon changes in the spot rate remeasurement of the Euro and US dollar denominated intercompany loans, including associated interest. Hedge effectiveness is assessed based on the fair value changes of the derivative instruments and such hedges are deemed to be highly effective in offsetting exposure to variability in foreign exchange rates. There are no credit-risk-related contingent features associated with these fixed-rate cross-currency interest rate swaps. Derivatives instruments in net investment hedging relationships On September 23, 2016 , Woodward and Woodward International Holding B.V., a wholly owned subsidiary of Woodward organized under the laws of The Netherlands (the “BV Subsidiary”), each entered into a note purchase agreement (the “2016 Note Purchase Agreement”) relating to the sale by Woodward and the BV Subsidiary of an aggregate principal amount of € 160,000 of senior unsecured notes in a series of private placement transactions. Woodward issued € 40,000 aggregate principal amount of Woodward’s Series M Senior Notes due September 23, 2026 (the “Series M Notes”). Woodward designated the Series M Notes as a hedge of a foreign currency exposure of Woodward’s net investment in its Euro denominated functional currency subsidiaries. Related to the Series M Notes, included in foreign currency translation adjustments within total comprehensive (losses) earnings are net foreign exchange gains of $ 139 for the three months and net foreign exchange losses of $ 4,293 for the nine months ended June 30, 2023, compared to net foreign exchange gains of $ 2,887 for the three months and $ 4,631 for the nine months ended June 30, 2022. Impact of derivative instruments designated as qualifying hedging instruments The following table discloses the amount of (income) expense recognized in earnings on derivative instruments designated as qualifying hedging instruments: Three months ended June 30, Nine months ended June 30, Derivatives in: Location 2023 2022 2023 2022 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ 2 $ ( 1,087 ) $ 939 $ ( 2,006 ) Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses ( 1,431 ) ( 25,881 ) 43,438 ( 41,293 ) $ ( 1,429 ) $ ( 26,968 ) $ 44,377 $ ( 43,299 ) The following table discloses the amount of (gain) loss recognized in accumulated OCI on derivative instruments designated as qualifying hedging instruments: Three months ended June 30, Nine months ended June 30, Derivatives in: Location 2023 2022 2023 2022 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ ( 42 ) $ ( 903 ) $ 875 $ ( 1,960 ) Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses 9,431 ( 33,304 ) 43,198 ( 57,027 ) $ 9,389 $ ( 34,207 ) $ 44,073 $ ( 58,987 ) The following table discloses the amount of (gain) loss reclassified from accumulated OCI into earnings on derivative instruments designated as qualifying hedging instruments: Three months ended June 30, Nine months ended June 30, Derivatives in: Location 2023 2022 2023 2022 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ 2 $ ( 1,087 ) $ 939 $ ( 2,006 ) Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses ( 1,431 ) ( 25,881 ) 43,438 ( 41,293 ) $ ( 1,429 ) $ ( 26,968 ) $ 44,377 $ ( 43,299 ) The remaining unrecognized gains and losses in Woodward’s Condensed Consolidated Balance Sheets associated with derivative instruments that were previously entered into by Woodward, which are classified in accumulated OCI, were net losses of $ 6,034 as of June 30, 2023 and $ 6,338 as of September 30, 2022 . |
Supplemental Statement of Cash
Supplemental Statement of Cash Flows Information | 9 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Statement of Cash Flows Information | Note 9. Supplemental statement of cash flows information Nine Months Ended June 30, 2023 2022 Interest paid, net of amounts capitalized $ 31,116 $ 23,509 Income taxes paid 60,334 25,625 Income tax refunds received 1,459 7,240 Non-cash activities: Purchases of property, plant and equipment on account 2,612 4,386 Common shares issued from treasury to settle benefit obligations 19,467 17,168 |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | Note 10. Acquisitions On August 2, 2022, we entered into a series of Purchase Agreements with one of our Asia pacific channel partners, PM Control PLC (the “PM Agreements”). Pursuant to the PM Agreements, we agreed to acquire business assets and shares of stock of PM Control PLC and its affiliates (collectively, “PM Control”), for a total consideration (net of a working capital adjustment, excluding cash acquired from the acquisition, and including the settlement of pre‐existing relationships) of $ 21,421 (the “PM Acquisition”). The PM Acquisition closed on August 31, 2022 (the “PM Closing”), and PM Control PLC became a wholly owned subsidiary of the Company at that time. ASC Topic 805, “Business Combinations” (“ASC 805”), provides a framework to account for acquisition transactions under U.S. GAAP. The purchase price of PM Control, prepared consistent with the required ASC 805 framework, is allocated as follows: Cash paid to Sellers $ 22,890 Working capital adjustment ( 878 ) Less acquired cash and restricted cash ( 1,341 ) Plus settlement of pre-existing relationships 750 Total purchase price $ 21,421 The allocation of the purchase price to the assets acquired and liabilities assumed was finalized as of June 30, 2023 using the purchase method of accounting in accordance with ASC 805. Assets acquired and liabilities assumed in the transaction were recorded at their acquisition date fair values, while transaction costs associated with the acquisition were expensed as incurred. Woodward’s allocation was based on an evaluation of the appropriate fair values and represents management’s best estimate. The following table summarizes, which is final as of June 30, 2023, 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 8,705 Intangible assets 8,874 Total assets acquired 27,251 Other current liabilities ( 2,703 ) Deferred income tax liabilities ( 1,842 ) Other noncurrent liabilities ( 1,285 ) Total liabilities assumed ( 5,830 ) Net assets acquired $ 21,421 During the first quarter of fiscal year 2023, we made certain measurement period adjustments to the acquired assets and the assumed liabilities due to clarification of information utilized to determine fair value during the measurement period. The measurement period adjustment was related to the PM Control trade name. Management determined that the PM Control trade name would no longer be used after calendar year 2023, thus resulting in a measurement period adjustment of $ 1,042 , which reduced intangible assets and increased goodwill. Additionally, in the first quarter of 2023, a working capital adjustment was made that resulted in a reduction of goodwill of $ 863 . The final purchase price allocation resulted in the recognition of $ 8,705 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, and 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 Weighted- Amortization Intangible assets with finite lives: Customer relationships and contracts $ 8,332 11 years Straight-line Trade name 542 15 months Straight-line Total $ 8,874 Future amortization expense associated with the acquired intangibles for the fiscal year ended September 30, 2023, is expected to be $ 1,191 , $ 865 for the fiscal year ended September 30, 2024, and $ 757 for the next three fiscal years ended September 30, 2025, 2026, and 2027. We have not presented pro forma results because the PM Acquisition was not deemed significant at the date of PM Closing. |
Inventories
Inventories | 9 Months Ended |
Jun. 30, 2023 | |
Inventory Net [Abstract] | |
Inventories | Note 11. Inventories June 30, 2023 September 30, 2022 Raw materials $ 145,513 $ 126,264 Work in progress 129,080 123,005 Component parts (1) 337,004 329,962 Finished goods 80,194 70,019 Customer supplied inventory 12,841 12,442 On-hand inventory for which control has transferred to the customer ( 172,798 ) ( 147,405 ) $ 531,834 $ 514,287 (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 | 9 Months Ended |
Jun. 30, 2023 | |
Property Plant And Equipment Net [Abstract] | |
Property, Plant and Equipment | Note 12. Property, plant, and equipment June 30, 2023 September 30, 2022 Land and land improvements $ 86,213 $ 84,057 Buildings and building improvements 588,298 555,387 Leasehold improvements 20,488 19,392 Machinery and production equipment 802,907 779,514 Computer equipment and software 119,484 122,670 Office furniture and equipment 41,838 39,749 Other 20,125 20,162 Construction in progress 53,741 58,789 1,733,094 1,679,720 Less accumulated depreciation ( 822,550 ) ( 769,248 ) Property, plant, and equipment, net $ 910,544 $ 910,472 Woodward had depreciation expense as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Depreciation expense $ 20,551 $ 20,618 $ 61,212 $ 62,674 |
Goodwill
Goodwill | 9 Months Ended |
Jun. 30, 2023 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 13. Goodwill September 30, Additions Effects of Foreign June 30, Aerospace $ 455,423 $ — $ — $ 455,423 Industrial 317,136 180 25,836 343,152 Consolidated $ 772,559 $ 180 $ 25,836 $ 798,575 Woodward tests goodwill for impairment during the fourth quarter of each fiscal year and at any time there is an indication that goodwill is more-likely-than-not impaired (commonly referred to as a triggering event). Woodward’s goodwill impairment test in the fourth quarter of fiscal year 2022 resulted in no impairment. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Jun. 30, 2023 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible Assets, Net | Note 14. Intangible assets, net June 30, 2023 September 30, 2022 Gross Accumulated Net Gross Accumulated Net Intangible assets with finite lives: Customer relationships and contracts: Aerospace $ 281,683 $ ( 233,002 ) $ 48,681 $ 281,683 $ ( 223,565 ) $ 58,118 Industrial 388,771 ( 87,293 ) 301,478 352,917 ( 66,812 ) 286,105 Total $ 670,454 $ ( 320,295 ) $ 350,159 $ 634,600 $ ( 290,377 ) $ 344,223 Intellectual property: Aerospace $ — $ — $ — $ — $ — $ — Industrial 11,794 ( 11,794 ) — 12,361 ( 12,361 ) — Total $ 11,794 $ ( 11,794 ) $ — $ 12,361 $ ( 12,361 ) $ — Process technology: Aerospace $ 76,370 $ ( 70,880 ) $ 5,490 $ 76,370 $ ( 69,471 ) $ 6,899 Industrial 85,370 ( 31,335 ) 54,035 78,524 ( 27,464 ) 51,060 Total $ 161,740 $ ( 102,215 ) $ 59,525 $ 154,894 $ ( 96,935 ) $ 57,959 Other intangibles: Aerospace $ — $ — $ — $ — $ — $ — Industrial 561 ( 392 ) 169 1,560 — 1,560 Total $ 561 $ ( 392 ) $ 169 $ 1,560 $ — $ 1,560 Intangible asset with indefinite life: Trade name: Aerospace $ — $ — $ — $ — $ — $ — Industrial 63,041 — 63,041 56,838 — 56,838 Total $ 63,041 $ — $ 63,041 $ 56,838 $ — $ 56,838 Total intangibles: Aerospace $ 358,053 $ ( 303,882 ) $ 54,171 $ 358,053 $ ( 293,036 ) $ 65,017 Industrial 549,537 ( 130,814 ) 418,723 502,200 ( 106,637 ) 395,563 Consolidated Total $ 907,590 $ ( 434,696 ) $ 472,894 $ 860,253 $ ( 399,673 ) $ 460,580 Woodward tests the indefinite lived trade name intangible asset for impairment during the fourth quarter of each fiscal year and at any time there is an indication the indefinite lived trade name intangible asset is more-likely-than-not impaired (commonly referred to as a triggering event). Woodward’s impairment test for the indefinite lived trade name intangible asset in the fourth quarter of fiscal year 2022 resulted in no impairment. Woodward recorded amortization expense associated with intangibles of the following: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Amortization expense $ 9,493 $ 9,309 $ 28,089 $ 28,584 Future amortization expense associated with intangibles is expected to be: Year Ending September 30: 2023 (remaining) $ 10,019 2024 32,919 2025 27,806 2026 27,745 2027 27,670 Thereafter 283,694 $ 409,853 |
Credit Facilities, Short-term B
Credit Facilities, Short-term Borrowings and Long-term Debt | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Credit Facilities, Short-term Borrowings and Long-term Debt | Note 15. Credit facilities, short-term borrowings and long-term debt Revolving credit facility Woodward maintains a $ 1,000,000 revolving credit facility established under a revolving credit agreement among Woodward, a syndicate of lenders and Wells Fargo Bank, National Association, as administrative agent, which provides for the option to increase available borrowings up to $ 1,500,000 , subject to lenders’ participation (as amended in November 2021, the “Amended and Restated Revolving Credit Agreement”). On October 21, 2022, Woodward amended the Amended and Restated Revolving Credit Agreement (the “Second Amended and Restated Revolving Credit Agreement”) to, among other things, (i) extend the termination date of the revolving loan commitments of all the lenders from June 19, 2024 to October 21, 2027, (ii) remove the covenants restricting investments, acquisitions, dividends, and distributions, and (iii) subject to removal from the Company’s existing note purchase agreements or the termination or maturation of such note purchase agreements, remove the minimum consolidated net worth covenant. Borrowings under the Second Amended and Restated Revolving Credit Agreement can be made by Woodward and certain of its foreign subsidiaries in U.S. dollars or in foreign currencies other than the U.S. dollar and generally bear interest at the Euro Interbank Offered Rate (“Euribor”), Sterling Overnight Index Average (“SONIA”), Tokyo Interbank Offered Rate (“TIBOR”), and Secured Overnight Financing Rate (“SOFR”) base rates plus 0.875 % to 1.75 %. Under the Second Amended and Restated Revolving Credit Agreement, there were $ 23,500 in principal amount of borrowings outstanding as of June 30, 2023 at an effective interest rate of 6.33 % . As of June 30, 2023, all of the 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, 2022 , there were $ 66,800 in principal amount of borrowings outstanding under the Amended and Restated Revolving Credit Agreement at an effective interest rate of 4.24 %. 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 June 30, 2023 and September 30, 2022. Debt issuance costs In connection with the Second Amended and Restated Revolving Credit Agreement, Woodward incurred $ 2,236 in debt issuance costs, which are deferred and are being amortized using the straight-line method over the life of the agreement. As of June 30, 2023 , Woodward also had $ 1,046 of deferred debt issuance costs remaining that were incurred in connection with the Amended and Restated Credit Agreement, which have been combined with the deferred debt issuance costs associated with the Second Amended and Restated Revolving Credit Agreement and are being amortized using the straight-line method over the life of the Second Amended and Restated Revolving Credit Agreement. Unamortized debt issuance costs of $ 1,233 associated with these revolving credit agreements as of June 30, 2023 and $ 1,046 as of September 30, 2022 were recorded as “Other current assets” and “Other assets” in the Condensed Consolidated Balance Sheets. Amortization of debt issuance costs is included in operating activities in the Condensed Consolidated Statements of Cash Flows. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 16. Accrued liabilities June 30, 2023 September 30, 2022 Salaries and other member benefits $ 95,752 $ 75,665 Product warranties and related liabilities (1) 39,424 40,042 Interest payable 4,955 13,481 Accrued retirement benefits 2,886 2,779 Net current contract liabilities 31,567 30,663 Current portion of restructuring charges 1,566 1,083 Taxes, other than income 17,913 21,159 Other 26,871 21,411 $ 220,934 $ 206,283 (1) Product warranties and related liabilities includes estimates related to product liabilities expected to be fully recoverable from insurance. 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 for which 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: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Beginning of period $ 46,492 $ 12,984 $ 40,042 $ 17,481 Additions, net of recoveries 2,424 3,021 22,847 3,243 Reductions for settlement ( 9,433 ) ( 1,239 ) ( 23,636 ) ( 5,908 ) Foreign currency exchange rate changes ( 59 ) ( 121 ) 171 ( 171 ) End of period $ 39,424 $ 14,645 $ 39,424 $ 14,645 Restructuring charges During the second quarter of fiscal year 2023, the Company committed to a cost reduction plan ("Cost Reduction Plan") to better align the cost structure, and recorded $ 5,172 of restructuring charges. The charges recognized under the Cost Reduction Plan consist of workforce management costs primarily related to aligning the cost structure of the Company’s Industrial segment with the current market conditions. All of the restructuring charges were recorded as nonsegment expenses and are expected to be paid within twelve months. 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, which were paid as of December 31, 2022. 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 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 who otherwise would have been impacted by the planned restructuring activities to support a stable workforce and effectively manage through attrition. As such, the previously remaining unpaid accrued restructuring charges, which amounted to $ 4,503 , were no longer needed and were reversed in fiscal year 2022. The summary of activity in accrued restructuring charges are as follows: Period Activity Balances as of September 30, 2022 Charges Payments Non-cash Balances as of June 30, 2023 Workforce management costs associated with: Cost reduction plan $ — $ 5,172 $ ( 3,594 ) $ ( 12 ) $ 1,566 Aerospace 139 — ( 139 ) — — Industrial 944 — ( 944 ) — — Total $ 1,083 $ 5,172 $ ( 4,677 ) $ ( 12 ) $ 1,566 Period Activity Balances as of September 30, 2021 Charges Payments Non-cash Balances as of June 30, 2022 Workforce management costs associated with: Hydraulics Systems Realignment $ 3,758 $ — $ ( 505 ) $ — $ 3,253 Engine Systems Realignment 1,250 — — — 1,250 Total $ 5,008 $ — $ ( 505 ) $ — $ 4,503 |
Other Liabilities
Other Liabilities | 9 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Noncurrent [Abstract] | |
Other Liabilities | Note 17. Other liabilities June 30, 2023 September 30, 2022 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 76,839 $ 70,168 Total unrecognized tax benefits 8,156 9,757 Noncurrent income taxes payable 10,714 14,329 Deferred economic incentives (1) 6,100 7,029 Noncurrent operating lease liabilities 20,924 21,443 Net noncurrent contract liabilities 412,608 396,345 Other 12,150 10,185 $ 547,491 $ 529,256 (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 | 9 Months Ended |
Jun. 30, 2023 | |
Nonoperating Income Expense [Abstract] | |
Other (Income) Expense, Net | Note 18. Other (income) expense, net Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Equity interest in the earnings of the JV $ ( 8,836 ) $ ( 3,860 ) $ ( 21,877 ) $ ( 12,675 ) Net (gain) loss on sales of assets and businesses ( 218 ) ( 4 ) 672 ( 1,545 ) Rent income ( 92 ) ( 168 ) ( 273 ) ( 580 ) Net (gain) loss on investments in deferred compensation program ( 1,257 ) 3,840 ( 4,127 ) 5,216 Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense ( 2,521 ) ( 2,884 ) ( 7,681 ) ( 8,720 ) Other ( 77 ) ( 176 ) ( 145 ) ( 509 ) $ ( 13,001 ) $ ( 3,252 ) $ ( 33,431 ) $ ( 18,813 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 19. Income taxes The determination of the estimated annual effective tax rate is based upon a number of significant estimates and judgments. In addition, as a global commercial enterprise, Woodward’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, changes in the estimate of the amount of undistributed foreign earnings that Woodward considers indefinitely reinvested, issuance of future guidance, interpretation, and rule-making, and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. The following table sets forth the tax expense and the effective tax rate for Woodward’s earnings before income taxes: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Earnings before income taxes $ 105,738 $ 50,287 $ 177,728 $ 142,129 Income tax expense 21,139 10,841 28,012 24,472 Effective tax rate 20.0 % 21.6 % 15.8 % 17.2 % The decrease in the effective tax rate for the three months ended June 30, 2023 compared to the three months ended June 30, 2022 is primarily attributable to a larger stock-based compensation tax benefit in the quarter and larger state income tax credits. The decrease in the effective tax rate for the nine months ended June 30, 2023 compared to the nine months ended June 30, 2022 is primarily attributable to the release of uncertain tax positions and larger state income tax credits, partially offset by a smaller year-to-date stock-based compensation tax benefit. Gross unrecognized tax benefits were $ 10,533 as of June 30, 2023 , and $ 11,938 as of September 30, 2022. At June 30, 2023 , the amount of the liability for unrecognized tax benefits that, if recognized, would impact Woodward’s effective tax rate was $ 6,781 . At this time, Woodward believes it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $ 2,522 in the next twelve months due to the completion of review by tax authorities, lapses of statutes, and the settlement of tax positions. Woodward’s tax expense includes accruals for potential interest and penalties related to unrecognized tax benefits and all other interest and penalties related to tax payments. Woodward’s tax returns are subject to audits by U.S. federal, state, and foreign tax authorities, and these audits are at various stages of completion at any given time. Reviews of tax matters by authorities and lapses of the applicable statutes of limitation may result in changes to tax expense. Generally, Woodward’s fiscal years remaining open to examination for U.S. Federal income taxes include fiscal years 2019 and thereafter. Woodward’s fiscal years remaining open to examination for significant U.S. state income tax jurisdictions include fiscal years 2018 and thereafter. Woodward’s fiscal years remaining open to examination in significant foreign jurisdictions include 2017 and thereafter. |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Jun. 30, 2023 | |
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. Woodward’s U.S. employees receive an annual contribution of Woodward stock, equal to 5 % of their eligible prior year wages, to their personal Woodward Retirement Savings Plan accounts. Woodward fulfilled its annual Woodward stock contribution obligation using shares held in treasury stock by issuing a total of 187 shares of common stock for a value of $ 19,307 in the second quarter of fiscal year 2023, compared to a total of 150 shares of common stock for a value of $ 17,168 in the second quarter of fiscal year 2022. The amount of expense associated with defined contribution plans was as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Company costs $ 11,602 $ 10,132 $ 33,542 $ 30,582 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, their covered dependents, and beneficiaries in the United States. Life insurance benefits are provided to certain retirees in the United States under frozen plans, which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for all of Woodward’s defined benefit pension and other postretirement benefit plans. U.S. GAAP requires that, for obligations outstanding as of September 30, 2022, the funded status reported in interim periods shall be the same asset or liability recognized in the previous year end statement of financial position adjusted for (a) subsequent accruals of net periodic benefit cost that exclude the amortization of amounts previously recognized in other comprehensive income (for example, subsequent accruals of service cost, interest cost, and return on plan assets) and (b) contributions to a funded plan or benefit payments. The components of the net periodic retirement pension costs recognized are as follows: Three Months Ended June 30, United States Other Countries Total 2023 2022 2023 2022 2023 2022 Service cost $ 223 $ 389 $ 344 $ 573 $ 567 $ 962 Interest cost 1,824 1,320 805 395 2,629 1,715 Expected return on plan assets ( 2,074 ) ( 2,713 ) ( 586 ) ( 596 ) ( 2,660 ) ( 3,309 ) Amortization of: Net actuarial loss (gain) 73 65 ( 161 ) 136 ( 88 ) 201 Prior service cost 174 246 5 6 179 252 Net periodic retirement pension cost (benefit) $ 220 $ ( 693 ) $ 407 $ 514 $ 627 $ ( 179 ) Contributions paid $ — $ — $ 470 $ 434 $ 470 $ 434 Nine Months Ended June 30, United States Other Countries Total 2023 2022 2023 2022 2023 2022 Service cost $ 670 $ 1,166 $ 996 $ 1,803 $ 1,666 $ 2,969 Interest cost 5,473 3,961 2,333 1,243 7,806 5,204 Expected return on plan assets ( 6,223 ) ( 8,140 ) ( 1,710 ) ( 1,881 ) ( 7,933 ) ( 10,021 ) Amortization of: Net actuarial loss (gain) 219 194 ( 462 ) 428 ( 243 ) 622 Prior service cost 523 736 16 18 539 754 Net periodic retirement pension cost (benefit) $ 662 $ ( 2,083 ) $ 1,173 $ 1,611 $ 1,835 $ ( 472 ) Contributions paid $ — $ — $ 1,763 $ 1,933 $ 1,763 $ 1,933 The components of net periodic retirement pension costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net”, and the interest component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings. The components of the net periodic other postretirement benefit costs recognized are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 226 144 678 433 Amortization of: Net actuarial gain ( 124 ) ( 24 ) ( 372 ) ( 71 ) Prior service cost — — — — Net periodic other postretirement cost $ 103 $ 121 $ 307 $ 363 Contributions paid $ 415 $ 451 $ 1,300 $ 1,379 The components of net periodic other postretirement benefit costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net”, and the interest cost component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings. The amount of cash contributions made to these plans in any year is dependent upon a number of factors, including minimum funding requirements in the jurisdictions in which Woodward operates and arrangements made with trustees of certain foreign plans. As a result, the actual funding in fiscal year 2023 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2023 will be as follows: Retirement pension benefits: United States $ — United Kingdom 186 Japan — Germany 226 Other postretirement benefits 1,516 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Note 21. Stockholders’ equity Stock repurchase program In November 2019, the Woodward board of directors (the “Board”) had authorized a program for the repurchase of up to $ 500,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year period that was scheduled to expire in November 2022 (the “2019 Authorization”). During the first nine months of fiscal year 2022, Woodward repurchased 233 shares of its common stock for $ 26,742 under the 2019 Authorization. In January 2022, the Board terminated the 2019 Authorization and concurrently authorized a new 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 the first nine months of fiscal year 2023, Woodward repurchased 274 shares of its common stock for $ 26,369 under the 2022 Authorization, compared to 3,441 shares of its common stock for $ 400,975 during the first nine months of fiscal year 2022. Stock-based compensation Provisions governing outstanding stock option awards are included in the 2017 Omnibus Incentive Plan, as amended from time to time (the “2017 Plan”) and the 2006 Omnibus Incentive Plan (the “2006 Plan”), as applicable. The 2017 Plan was first approved by Woodward’s stockholders in January 2017 and is the 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, including, but not limited to, the power to determine the recipients of awards and the terms of those awards. On January 26, 2022 and January 25, 2023, Woodward’s stockholders approved an additional 800 and 500 shares, respectively, of Woodward’s common stock to be made available for future grants. Under the 2017 Plan, there were approximately 2,711 shares of Woodward’s common stock available for future grants as of June 30, 2023 and 2,938 shares as of September 30, 2022. Stock options Woodward believes that stock options align the interests of its employees and directors with the interests of its stockholders. Stock option awards are granted with an exercise price equal to the market price of Woodward’s stock at the date the grants are awarded, a ten-year term, and generally have a four-year vesting schedule at a rate of 25 % per year. The fair value of options granted is estimated as of the grant date using the Black-Scholes-Merton option-valuation model. 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. The following is a summary of the activity for stock option awards: Three Months Ended June 30, 2023 Nine Months Ended June 30, 2023 Number of options Weighted-Average Exercise Price per Share Number of options Weighted-Average Exercise Price per Share Beginning balance 5,574 $ 76.35 5,339 $ 74.40 Granted 4 102.36 526 83.88 Exercised ( 268 ) 55.43 ( 538 ) 53.27 Forfeited ( 8 ) 97.69 ( 25 ) 93.60 Ending balance 5,302 $ 77.39 5,302 $ 77.39 Changes in non-vested stock options were as follows: Three Months Ended June 30, 2023 Nine Months Ended June 30, 2023 Number of options Weighted-Average Grant Date Fair Value per Share Number of options Weighted-Average Grant Date Fair Value Per Share Beginning balance 1,675 $ 31.39 1,812 $ 30.03 Granted 4 42.82 526 33.74 Exercised ( 282 ) 19.77 ( 925 ) 26.23 Forfeited ( 6 ) 34.92 ( 22 ) 33.69 Ending balance 1,391 $ 33.76 1,391 $ 33.76 Information about stock options that have vested, or are expected to vest, and are exercisable at June 30, 2023 was as follows: Number of options Weighted-Average Exercise Price Weighted-Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 5,302 $ 77.39 5.5 $ 220,265 Options vested and exercisable 3,911 71.50 4.6 185,525 Options vested and expected to vest 5,250 77.25 5.5 218,835 Restricted stock The Company has granted restricted stock units (“RSUs”) to certain employees under its form attraction and retention RSU agreement (the “Form Attraction and Retention RSU Agreement”), which is generally used for new hires and specific retention purposes, and under its form RSU agreement (the “Standard Form RSU Agreement”), which is generally used for annual grants and promotional awards. The RSUs granted under the Form Attraction and Retention Agreement are generally scheduled to fully vest on the third or fourth anniversary o f the respective grant dates, and in each case, subject to continued employment. The RSUs granted under the Standard Form RSU Agreement generally have a four-year vesting schedule at a rate of 25 % per year, generally subject to continued employment. A summary of the activity for restricted stock units: Three Months Ended June 30, 2023 Nine Months Ended June 30, 2023 Number of units Weighted-Average Grant Date Fair Value Number of units Weighted-Average Grant Date Fair Value Beginning balance 171 $ 92.19 59 $ 98.29 Granted 2 94.42 115 89.00 Forfeited ( 1 ) 83.24 ( 2 ) 83.24 Ending balance 172 $ 92.26 172 $ 92.26 Stock-based compensation expense Woodward recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Pursuant to form stock option agreements and form RSU 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 and RSU 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. In connection with an executive separation and release agreement entered into by the Company, Woodward recognized an additional $ 1,265 of stock-based compensation expense, before tax, during the nine months ended June 30, 2023. At June 30, 2023 , there was approximately $ 23,418 of total unrecognized compensation expense related to non-vested stock-based compensation arrangements, including both stock options and RSUs. The pre-vesting forfeiture rates for purposes of determining stock-based compensation expense recognized were estimated to be 0.0 % for members of the Board and 7.3 % for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 1.9 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2023 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 22. Commitments and contingencies Woodward is currently involved in claims, pending or threatened litigation or other legal proceedings, investigations and/or regulatory proceedings arising in the normal course of business, including, among others, those relating to product liability claims, employment matters, worker’s compensation claims, contractual disputes, product warranty claims, and alleged violations of various laws and regulations. Woodward accrues for known individual matters using estimates of the most likely amount of loss where it believes that it is probable the matter will result in a loss when ultimately resolved and such loss is reasonably estimable. Legal costs are expensed as incurred and are classified in “Selling, general and administrative expenses” on the Condensed Consolidated Statements of Earnings. Woodward is partially self-insured in the United States for healthcare and worker’s compensation up to predetermined amounts, above which third party insurance applies. Management regularly reviews the probable outcome of related claims and proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and the established accruals for liabilities. While the outcome of pending claims, legal and regulatory proceedings, and investigations cannot be predicted with certainty, management believes that any liabilities that may result from these claims, proceedings, and investigations will not have a material effect on Woodward’s liquidity, financial condition, or results of operations. Under the Company’s severance and change in control agreements with its current corporate officers, Woodward would be required to pay termination benefits to any such officer if such officer’s employment is terminated without Cause (as defined therein). The amount of such benefits would vary depending on whether such termination occurs during a specified period within a change of control. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 23. Segment information Woodward serves the aerospace and industrial markets through its two reportable segments – Aerospace and Industrial. When appropriate, Woodward’s reportable segments are aggregations of Woodward’s operating segments. Woodward uses operating segment information internally to manage its business, including the assessment of operating segment performance and decisions for the allocation of resources between operating segments. The accounting policies of the reportable segments are the same as those of the Company. Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period. In connection with that assessment, Woodward generally excludes matters such as certain charges for restructuring, interest income and expense, certain gains and losses from asset dispositions, or other non-recurring and/or non-operationally related expenses. A summary of consolidated net sales and earnings by segment follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Segment external net sales: Aerospace $ 480,531 $ 401,712 $ 1,313,233 $ 1,110,904 Industrial 320,132 212,620 824,263 631,853 Total consolidated net sales $ 800,663 $ 614,332 $ 2,137,496 $ 1,742,757 Segment earnings: Aerospace $ 83,075 $ 56,566 $ 211,823 $ 167,458 Industrial 58,197 21,102 107,170 62,029 Nonsegment expenses ( 23,875 ) ( 19,201 ) ( 106,493 ) ( 63,816 ) Interest expense, net ( 11,659 ) ( 8,180 ) ( 34,772 ) ( 23,542 ) Consolidated earnings before income taxes $ 105,738 $ 50,287 $ 177,728 $ 142,129 Segment assets consist of accounts receivable; inventories; property, plant, and equipment, net; goodwill; and other intangibles, net. A summary of consolidated total assets by segment follows: June 30, 2023 September 30, 2022 Segment assets: Aerospace $ 1,819,068 $ 1,773,854 Industrial 1,523,239 1,380,446 Unallocated corporate property, plant and equipment, net 104,417 111,760 Other unallocated assets 562,839 540,386 Consolidated total assets $ 4,009,563 $ 3,806,446 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 24. Subsequent events On July 26, 2023, the Board approved a cash dividend of $ 0.22 per share for the quarter, payable on August 28,2023 , for stockholders of record as of August 14, 2023 . |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenue Recognition Time | The amount of revenue recognized as point in time or over time follows: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Point in time $ 194,807 $ 208,597 $ 403,404 $ 154,323 $ 119,808 $ 274,131 Over time 285,724 111,535 397,259 247,389 92,812 340,201 Total net sales $ 480,531 $ 320,132 $ 800,663 $ 401,712 $ 212,620 $ 614,332 Nine Months Ended June 30, 2023 Nine Months Ended June 30, 2022 Aerospace Industrial Consolidated Aerospace Industrial Consolidated Point in time $ 552,895 $ 526,096 $ 1,078,991 $ 428,212 $ 367,019 $ 795,231 Over time 760,338 298,167 1,058,505 682,692 264,834 947,526 Total net sales $ 1,313,233 $ 824,263 $ 2,137,496 $ 1,110,904 $ 631,853 $ 1,742,757 |
Schedule of Accounts Receivable | Accounts receivable consisted of the following: June 30, 2023 September 30, 2022 Billed receivables Trade accounts receivable $ 408,601 $ 359,364 Other (Chinese financial institutions) 38,098 9,405 Total billed receivables 446,699 368,769 Current unbilled receivables (contract assets) 294,806 245,117 Total accounts receivable 741,505 613,886 Less: Allowance for uncollectible amounts ( 8,700 ) ( 3,922 ) Total accounts receivable, net $ 732,805 $ 609,964 |
Schedule of Uncollectible Amounts And Change in Expected Allowance for Credit Losses for Trade Accounts Receivable and Unbilled Receivables | The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Balance, beginning $ 9,949 $ 3,141 $ 3,922 $ 3,664 Changes in estimates 77 356 6,463 783 Write-offs ( 1,271 ) — ( 1,601 ) ( 43 ) Other 1 ( 55 ) ( 454 ) ( 84 ) ( 1,361 ) Balance, ending $ 8,700 $ 3,043 $ 8,700 $ 3,043 (1) Includes effects of foreign exchange rate changes during the period. |
Schedule of Contract Liability | Contract liabilities consisted of the following: June 30, 2023 September 30, 2022 Current Noncurrent Current Noncurrent Deferred revenue from material rights from GE joint venture formation $ 6,049 $ 235,686 $ 5,754 $ 234,516 Deferred revenue from advanced invoicing and/or prepayments from customers 4,771 3,277 4,120 38 Liability related to customer supplied inventory 12,841 — 12,442 — Deferred revenue from material rights related to engineering and development funding 7,906 173,645 8,347 161,791 Net contract liabilities $ 31,567 $ 412,608 $ 30,663 $ 396,345 |
Schedule of Disaggregation of Revenue | Revenue by primary market for the Aerospace reportable segment was as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Commercial OEM $ 186,173 $ 131,968 $ 484,319 $ 359,683 Commercial aftermarket 139,518 108,695 405,606 303,335 Defense OEM 101,008 115,205 278,577 318,392 Defense aftermarket 53,832 45,844 144,731 129,494 Total Aerospace segment net sales $ 480,531 $ 401,712 $ 1,313,233 $ 1,110,904 Revenue by primary market for the Industrial reportable segment was as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Reciprocating engines $ 242,040 $ 154,090 $ 612,655 $ 469,087 Industrial turbines 78,092 58,530 211,608 162,766 Total Industrial segment net sales $ 320,132 $ 212,620 $ 824,263 $ 631,853 The customers who each account for approximately 10% or more of net sales of each of Woodward’s reportable segments are as follows: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Aerospace Raytheon Technologies, General Electric Company, The Boeing Company, Raytheon Technologies, Industrial Weichai Westport, Rolls-Royce PLC, Caterpillar, Inc. Rolls-Royce PLC, Wartsila, Caterpillar, Inc. Nine Months Ended June 30, 2023 Nine Months Ended June 30, 2022 Aerospace Raytheon Technologies, General Electric Company, Raytheon Technologies, The Boeing Company, Industrial Rolls-Royce PLC, Caterpillar, Inc. Rolls-Royce PLC, Wartsila, Caterpillar, Inc. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted | The following is a reconciliation of net earnings to basic earnings per share and diluted earnings per share: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Numerator: Net earnings $ 84,599 $ 39,446 $ 149,716 $ 117,657 Denominator: Basic shares outstanding 60,056 60,506 59,843 62,052 Dilutive effect of stock options and restricted stock 1,535 1,582 1,407 1,885 Diluted shares outstanding 61,591 62,088 61,250 63,937 Income per common share: Basic earnings per share $ 1.41 $ 0.65 $ 2.50 $ 1.90 Diluted earnings per share $ 1.37 $ 0.64 $ 2.44 $ 1.84 |
Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share | The following stock option grants were outstanding but were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Options 564 1,048 1,554 479 Weighted-average option price $ 114.70 $ 110.49 $ 102.06 $ 117.45 |
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: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Weighted-average treasury stock shares held for deferred compensation obligations 62 140 96 154 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease-Related Assets and Liabilities | Lease-related assets and liabilities were as follows: Classification on the Condensed Consolidated Balance Sheets June 30, 2023 September 30, 2022 Assets: Operating lease Other assets $ 25,100 $ 25,144 Finance lease Property, plant and equipment, net 4,396 5,474 Total lease assets $ 29,496 $ 30,618 Current liabilities: Operating lease Accrued liabilities $ 4,764 $ 4,587 Finance lease Current portion of long-term debt 914 856 Noncurrent liabilities: Operating lease Other liabilities 20,924 21,443 Finance lease Long-term debt, less current portion 3,770 4,405 Total lease liabilities $ 30,372 $ 31,291 |
Lease-Related Expenses | Lease-related expenses were as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Operating lease expense $ 1,563 $ 1,549 $ 4,636 $ 4,809 Amortization of finance lease assets 251 116 663 290 Interest on finance lease liabilities 43 14 117 30 Variable lease expense 225 226 680 832 Short-term lease expense 44 44 152 134 Sublease (income) 1 — — — ( 192 ) Total lease expense $ 2,126 $ 1,949 $ 6,248 $ 5,903 (1) Relates to two separate subleases Woodward entered into for a leased manufacturing building in Niles, Illinois, each of which expired during fiscal year 2022. |
Lease-Related Supplemental Cash Flow Information | Lease-related supplemental cash flow information was as follows: Nine Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 3,879 $ 4,136 Operating cash flows for finance leases 117 30 Financing cash flows for finance leases 535 690 Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases 1,841 9,997 Finance leases 48 1,260 |
Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements | The carrying amount of property, plant, and equipment leased to others through embedded leasing arrangements, included in “Property, plant, and equipment, net” on the Condensed Consolidated Balance Sheets, follows: June 30, 2023 September 30, 2022 Property, plant and equipment leased through embedded leasing arrangements $ 46,916 $ 44,912 Less accumulated depreciation ( 28,249 ) ( 25,508 ) Property, plant and equipment leased through embedded leasing arrangements, net $ 18,667 $ 19,404 |
Joint Venture (Tables)
Joint Venture (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
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: June 30, 2023 September 30, 2022 Accrued liabilities $ 6,049 $ 5,754 Other liabilities 235,686 234,516 |
Other Income Related JV | Other income related to Woodward’s equity interest in the earnings of the JV was as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Other income $ 8,836 $ 3,860 $ 21,877 $ 12,675 |
Cash Distribution from JV | Cash distributions to Woodward from the JV, recognized in “Other, net” in “Net cash provided by operating activities” on the Condensed Consolidated Statements of Cash Flows, were as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Cash distributions $ 9,000 $ 4,000 $ 19,000 $ 13,000 |
Net Sales to the JV | Net sales to the JV were as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Net sales 1 $ 11,568 $ 6,698 $ 25,365 $ 19,245 (1) Net sales included a reduction of $ 14,396 for the three months and $ 34,854 for the nine months ended June 30, 2023 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $ 7,912 for the three months and $ 21,058 for the nine months ended June 30, 2022 . |
Accounts Receivable, Accounts Payable, and Other Assets Related to JV | The Condensed Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows: June 30, 2023 September 30, 2022 Accounts receivable $ 6,756 $ 4,172 Accounts payable 5,092 4,069 Other assets 11,059 8,181 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Assets that are Measured at Fair Value on a Recurring Basis | The table below presents information about Woodward’s financial assets that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques Woodward utilized to determine such fair value as defined by the U.S. GAAP fair value hierarchy. At June 30, 2023 At September 30, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets: Investments in term deposits with foreign banks $ 28,313 $ — $ — $ 28,313 $ 37,605 $ — $ — $ 37,605 Equity securities 26,549 — — 26,549 22,800 — — 22,800 Cross-currency interest rate swaps — — — — — 38,168 — 38,168 Total financial assets $ 54,862 $ — $ — $ 54,862 $ 60,405 $ 38,168 $ — $ 98,573 Financial liabilities: Cross-currency interest rate swaps $ — $ 1,987 $ — $ 1,987 $ — $ — $ — $ — Total financial liabilities $ — $ 1,987 $ — $ 1,987 $ — $ — $ — $ — |
Estimated Fair Values of Financial Instruments | The estimated fair values and carrying costs of other financial instruments that are not required to be remeasured at fair value in the Condensed Consolidated Balance Sheets were as follows: At June 30, 2023 At September 30, 2022 Fair Value Estimated Carrying Estimated Carrying Assets: Notes receivable from municipalities 2 $ 8,974 $ 8,794 $ 9,010 $ 8,992 Investments in short-term time deposits 2 6,159 6,189 8,026 7,893 Liabilities: Long-term debt 2 674,844 728,590 646,696 712,054 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
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: Three months ended June 30, Nine months ended June 30, Derivatives in: Location 2023 2022 2023 2022 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ 2 $ ( 1,087 ) $ 939 $ ( 2,006 ) Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses ( 1,431 ) ( 25,881 ) 43,438 ( 41,293 ) $ ( 1,429 ) $ ( 26,968 ) $ 44,377 $ ( 43,299 ) The following table discloses the amount of (gain) loss recognized in accumulated OCI on derivative instruments designated as qualifying hedging instruments: Three months ended June 30, Nine months ended June 30, Derivatives in: Location 2023 2022 2023 2022 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ ( 42 ) $ ( 903 ) $ 875 $ ( 1,960 ) Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses 9,431 ( 33,304 ) 43,198 ( 57,027 ) $ 9,389 $ ( 34,207 ) $ 44,073 $ ( 58,987 ) The following table discloses the amount of (gain) loss reclassified from accumulated OCI into earnings on derivative instruments designated as qualifying hedging instruments: Three months ended June 30, Nine months ended June 30, Derivatives in: Location 2023 2022 2023 2022 Cross-currency interest rate swap agreement designated as fair value hedges Selling, general and administrative expenses $ 2 $ ( 1,087 ) $ 939 $ ( 2,006 ) Cross-currency interest rate swap agreements designated as cash flow hedges Selling, general and administrative expenses ( 1,431 ) ( 25,881 ) 43,438 ( 41,293 ) $ ( 1,429 ) $ ( 26,968 ) $ 44,377 $ ( 43,299 ) |
Supplemental Statement of Cas_2
Supplemental Statement of Cash Flows Information (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Statement of Cash Flows Information | Nine Months Ended June 30, 2023 2022 Interest paid, net of amounts capitalized $ 31,116 $ 23,509 Income taxes paid 60,334 25,625 Income tax refunds received 1,459 7,240 Non-cash activities: Purchases of property, plant and equipment on account 2,612 4,386 Common shares issued from treasury to settle benefit obligations 19,467 17,168 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Consideration | The purchase price of PM Control, prepared consistent with the required ASC 805 framework, is allocated as follows: Cash paid to Sellers $ 22,890 Working capital adjustment ( 878 ) Less acquired cash and restricted cash ( 1,341 ) Plus settlement of pre-existing relationships 750 Total purchase price $ 21,421 |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes, which is final as of June 30, 2023, 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 8,705 Intangible assets 8,874 Total assets acquired 27,251 Other current liabilities ( 2,703 ) Deferred income tax liabilities ( 1,842 ) Other noncurrent liabilities ( 1,285 ) Total liabilities assumed ( 5,830 ) Net assets acquired $ 21,421 |
Schedule of Finite-Lived Intangible Assets Acquired | A summary of the intangible assets acquired, weighted‐average useful lives, and amortization methods follows: Estimated Weighted- Amortization Intangible assets with finite lives: Customer relationships and contracts $ 8,332 11 years Straight-line Trade name 542 15 months Straight-line Total $ 8,874 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Inventory Net [Abstract] | |
Schedule of Inventories | June 30, 2023 September 30, 2022 Raw materials $ 145,513 $ 126,264 Work in progress 129,080 123,005 Component parts (1) 337,004 329,962 Finished goods 80,194 70,019 Customer supplied inventory 12,841 12,442 On-hand inventory for which control has transferred to the customer ( 172,798 ) ( 147,405 ) $ 531,834 $ 514,287 (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) | 9 Months Ended |
Jun. 30, 2023 | |
Property Plant And Equipment Net [Abstract] | |
Schedule of Property Plant and Equipment, Net | June 30, 2023 September 30, 2022 Land and land improvements $ 86,213 $ 84,057 Buildings and building improvements 588,298 555,387 Leasehold improvements 20,488 19,392 Machinery and production equipment 802,907 779,514 Computer equipment and software 119,484 122,670 Office furniture and equipment 41,838 39,749 Other 20,125 20,162 Construction in progress 53,741 58,789 1,733,094 1,679,720 Less accumulated depreciation ( 822,550 ) ( 769,248 ) Property, plant, and equipment, net $ 910,544 $ 910,472 |
Schedule of Depreciation Expense | Woodward had depreciation expense as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Depreciation expense $ 20,551 $ 20,618 $ 61,212 $ 62,674 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | September 30, Additions Effects of Foreign June 30, Aerospace $ 455,423 $ — $ — $ 455,423 Industrial 317,136 180 25,836 343,152 Consolidated $ 772,559 $ 180 $ 25,836 $ 798,575 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Schedule of Finite-lived and Indefinite-lived Intangible Assets by Major Class | June 30, 2023 September 30, 2022 Gross Accumulated Net Gross Accumulated Net Intangible assets with finite lives: Customer relationships and contracts: Aerospace $ 281,683 $ ( 233,002 ) $ 48,681 $ 281,683 $ ( 223,565 ) $ 58,118 Industrial 388,771 ( 87,293 ) 301,478 352,917 ( 66,812 ) 286,105 Total $ 670,454 $ ( 320,295 ) $ 350,159 $ 634,600 $ ( 290,377 ) $ 344,223 Intellectual property: Aerospace $ — $ — $ — $ — $ — $ — Industrial 11,794 ( 11,794 ) — 12,361 ( 12,361 ) — Total $ 11,794 $ ( 11,794 ) $ — $ 12,361 $ ( 12,361 ) $ — Process technology: Aerospace $ 76,370 $ ( 70,880 ) $ 5,490 $ 76,370 $ ( 69,471 ) $ 6,899 Industrial 85,370 ( 31,335 ) 54,035 78,524 ( 27,464 ) 51,060 Total $ 161,740 $ ( 102,215 ) $ 59,525 $ 154,894 $ ( 96,935 ) $ 57,959 Other intangibles: Aerospace $ — $ — $ — $ — $ — $ — Industrial 561 ( 392 ) 169 1,560 — 1,560 Total $ 561 $ ( 392 ) $ 169 $ 1,560 $ — $ 1,560 Intangible asset with indefinite life: Trade name: Aerospace $ — $ — $ — $ — $ — $ — Industrial 63,041 — 63,041 56,838 — 56,838 Total $ 63,041 $ — $ 63,041 $ 56,838 $ — $ 56,838 Total intangibles: Aerospace $ 358,053 $ ( 303,882 ) $ 54,171 $ 358,053 $ ( 293,036 ) $ 65,017 Industrial 549,537 ( 130,814 ) 418,723 502,200 ( 106,637 ) 395,563 Consolidated Total $ 907,590 $ ( 434,696 ) $ 472,894 $ 860,253 $ ( 399,673 ) $ 460,580 |
Schedule of Finite-Lived Intangible Assets Amortization Expense | Woodward recorded amortization expense associated with intangibles of the following: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Amortization expense $ 9,493 $ 9,309 $ 28,089 $ 28,584 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization expense associated with intangibles is expected to be: Year Ending September 30: 2023 (remaining) $ 10,019 2024 32,919 2025 27,806 2026 27,745 2027 27,670 Thereafter 283,694 $ 409,853 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities [Line Items] | |
Accrued Liabilities | June 30, 2023 September 30, 2022 Salaries and other member benefits $ 95,752 $ 75,665 Product warranties and related liabilities (1) 39,424 40,042 Interest payable 4,955 13,481 Accrued retirement benefits 2,886 2,779 Net current contract liabilities 31,567 30,663 Current portion of restructuring charges 1,566 1,083 Taxes, other than income 17,913 21,159 Other 26,871 21,411 $ 220,934 $ 206,283 (1) Product warranties and related liabilities includes estimates related to product liabilities expected to be fully recoverable from insurance. |
Changes in Accrued Product Warranties and Related Liabilities | Changes in accrued product warranties and related liabilities were as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Beginning of period $ 46,492 $ 12,984 $ 40,042 $ 17,481 Additions, net of recoveries 2,424 3,021 22,847 3,243 Reductions for settlement ( 9,433 ) ( 1,239 ) ( 23,636 ) ( 5,908 ) Foreign currency exchange rate changes ( 59 ) ( 121 ) 171 ( 171 ) End of period $ 39,424 $ 14,645 $ 39,424 $ 14,645 |
Employee Severance [Member] | |
Accrued Liabilities [Line Items] | |
Loss Reserve & Restructuring Reserve Activity | The summary of activity in accrued restructuring charges are as follows: Period Activity Balances as of September 30, 2022 Charges Payments Non-cash Balances as of June 30, 2023 Workforce management costs associated with: Cost reduction plan $ — $ 5,172 $ ( 3,594 ) $ ( 12 ) $ 1,566 Aerospace 139 — ( 139 ) — — Industrial 944 — ( 944 ) — — Total $ 1,083 $ 5,172 $ ( 4,677 ) $ ( 12 ) $ 1,566 Period Activity Balances as of September 30, 2021 Charges Payments Non-cash Balances as of June 30, 2022 Workforce management costs associated with: Hydraulics Systems Realignment $ 3,758 $ — $ ( 505 ) $ — $ 3,253 Engine Systems Realignment 1,250 — — — 1,250 Total $ 5,008 $ — $ ( 505 ) $ — $ 4,503 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Noncurrent [Abstract] | |
Schedule of Other Liabilities | June 30, 2023 September 30, 2022 Net accrued retirement benefits, less amounts recognized within accrued liabilities $ 76,839 $ 70,168 Total unrecognized tax benefits 8,156 9,757 Noncurrent income taxes payable 10,714 14,329 Deferred economic incentives (1) 6,100 7,029 Noncurrent operating lease liabilities 20,924 21,443 Net noncurrent contract liabilities 412,608 396,345 Other 12,150 10,185 $ 547,491 $ 529,256 (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) | 9 Months Ended |
Jun. 30, 2023 | |
Nonoperating Income Expense [Abstract] | |
Schedule of Other (Income) Expense, Net | Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Equity interest in the earnings of the JV $ ( 8,836 ) $ ( 3,860 ) $ ( 21,877 ) $ ( 12,675 ) Net (gain) loss on sales of assets and businesses ( 218 ) ( 4 ) 672 ( 1,545 ) Rent income ( 92 ) ( 168 ) ( 273 ) ( 580 ) Net (gain) loss on investments in deferred compensation program ( 1,257 ) 3,840 ( 4,127 ) 5,216 Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense ( 2,521 ) ( 2,884 ) ( 7,681 ) ( 8,720 ) Other ( 77 ) ( 176 ) ( 145 ) ( 509 ) $ ( 13,001 ) $ ( 3,252 ) $ ( 33,431 ) $ ( 18,813 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Tax Expense and Effective Tax Rate | The following table sets forth the tax expense and the effective tax rate for Woodward’s earnings before income taxes: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Earnings before income taxes $ 105,738 $ 50,287 $ 177,728 $ 142,129 Income tax expense 21,139 10,841 28,012 24,472 Effective tax rate 20.0 % 21.6 % 15.8 % 17.2 % |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Amount of Expense Associated with Defined Contribution Plans | The amount of expense associated with defined contribution plans was as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Company costs $ 11,602 $ 10,132 $ 33,542 $ 30,582 |
Schedule of Estimated Remaining Cash Contributions | Woodward estimates its remaining cash contributions in fiscal year 2023 will be as follows: Retirement pension benefits: United States $ — United Kingdom 186 Japan — Germany 226 Other postretirement benefits 1,516 |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Periodic Benefit Costs | The components of the net periodic retirement pension costs recognized are as follows: Three Months Ended June 30, United States Other Countries Total 2023 2022 2023 2022 2023 2022 Service cost $ 223 $ 389 $ 344 $ 573 $ 567 $ 962 Interest cost 1,824 1,320 805 395 2,629 1,715 Expected return on plan assets ( 2,074 ) ( 2,713 ) ( 586 ) ( 596 ) ( 2,660 ) ( 3,309 ) Amortization of: Net actuarial loss (gain) 73 65 ( 161 ) 136 ( 88 ) 201 Prior service cost 174 246 5 6 179 252 Net periodic retirement pension cost (benefit) $ 220 $ ( 693 ) $ 407 $ 514 $ 627 $ ( 179 ) Contributions paid $ — $ — $ 470 $ 434 $ 470 $ 434 Nine Months Ended June 30, United States Other Countries Total 2023 2022 2023 2022 2023 2022 Service cost $ 670 $ 1,166 $ 996 $ 1,803 $ 1,666 $ 2,969 Interest cost 5,473 3,961 2,333 1,243 7,806 5,204 Expected return on plan assets ( 6,223 ) ( 8,140 ) ( 1,710 ) ( 1,881 ) ( 7,933 ) ( 10,021 ) Amortization of: Net actuarial loss (gain) 219 194 ( 462 ) 428 ( 243 ) 622 Prior service cost 523 736 16 18 539 754 Net periodic retirement pension cost (benefit) $ 662 $ ( 2,083 ) $ 1,173 $ 1,611 $ 1,835 $ ( 472 ) Contributions paid $ — $ — $ 1,763 $ 1,933 $ 1,763 $ 1,933 |
Other Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Periodic Benefit Costs | The components of the net periodic other postretirement benefit costs recognized are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 226 144 678 433 Amortization of: Net actuarial gain ( 124 ) ( 24 ) ( 372 ) ( 71 ) Prior service cost — — — — Net periodic other postretirement cost $ 103 $ 121 $ 307 $ 363 Contributions paid $ 415 $ 451 $ 1,300 $ 1,379 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Activity for Restricted Stock Units | A summary of the activity for restricted stock units: Three Months Ended June 30, 2023 Nine Months Ended June 30, 2023 Number of units Weighted-Average Grant Date Fair Value Number of units Weighted-Average Grant Date Fair Value Beginning balance 171 $ 92.19 59 $ 98.29 Granted 2 94.42 115 89.00 Forfeited ( 1 ) 83.24 ( 2 ) 83.24 Ending balance 172 $ 92.26 172 $ 92.26 |
Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Activity for Stock Option Awards | The following is a summary of the activity for stock option awards: Three Months Ended June 30, 2023 Nine Months Ended June 30, 2023 Number of options Weighted-Average Exercise Price per Share Number of options Weighted-Average Exercise Price per Share Beginning balance 5,574 $ 76.35 5,339 $ 74.40 Granted 4 102.36 526 83.88 Exercised ( 268 ) 55.43 ( 538 ) 53.27 Forfeited ( 8 ) 97.69 ( 25 ) 93.60 Ending balance 5,302 $ 77.39 5,302 $ 77.39 |
Changes in Non-vested Stock Options | Changes in non-vested stock options were as follows: Three Months Ended June 30, 2023 Nine Months Ended June 30, 2023 Number of options Weighted-Average Grant Date Fair Value per Share Number of options Weighted-Average Grant Date Fair Value Per Share Beginning balance 1,675 $ 31.39 1,812 $ 30.03 Granted 4 42.82 526 33.74 Exercised ( 282 ) 19.77 ( 925 ) 26.23 Forfeited ( 6 ) 34.92 ( 22 ) 33.69 Ending balance 1,391 $ 33.76 1,391 $ 33.76 |
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 June 30, 2023 was as follows: Number of options Weighted-Average Exercise Price Weighted-Average Remaining Life in Years Aggregate Intrinsic Value Options outstanding 5,302 $ 77.39 5.5 $ 220,265 Options vested and exercisable 3,911 71.50 4.6 185,525 Options vested and expected to vest 5,250 77.25 5.5 218,835 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Consolidated Net Sales and Earnings by Segment | A summary of consolidated net sales and earnings by segment follows: Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 Segment external net sales: Aerospace $ 480,531 $ 401,712 $ 1,313,233 $ 1,110,904 Industrial 320,132 212,620 824,263 631,853 Total consolidated net sales $ 800,663 $ 614,332 $ 2,137,496 $ 1,742,757 Segment earnings: Aerospace $ 83,075 $ 56,566 $ 211,823 $ 167,458 Industrial 58,197 21,102 107,170 62,029 Nonsegment expenses ( 23,875 ) ( 19,201 ) ( 106,493 ) ( 63,816 ) Interest expense, net ( 11,659 ) ( 8,180 ) ( 34,772 ) ( 23,542 ) Consolidated earnings before income taxes $ 105,738 $ 50,287 $ 177,728 $ 142,129 |
Summary of Consolidated Total Assets by Segment | Segment assets consist of accounts receivable; inventories; property, plant, and equipment, net; goodwill; and other intangibles, net. A summary of consolidated total assets by segment follows: June 30, 2023 September 30, 2022 Segment assets: Aerospace $ 1,819,068 $ 1,773,854 Industrial 1,523,239 1,380,446 Unallocated corporate property, plant and equipment, net 104,417 111,760 Other unallocated assets 562,839 540,386 Consolidated total assets $ 4,009,563 $ 3,806,446 |
Revenue (Schedule of Revenue Re
Revenue (Schedule of Revenue Recognition Time) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 800,663 | $ 614,332 | $ 2,137,496 | $ 1,742,757 |
Aerospace [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 480,531 | 401,712 | 1,313,233 | 1,110,904 |
Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 320,132 | 212,620 | 824,263 | 631,853 |
Point In Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 403,404 | 274,131 | 1,078,991 | 795,231 |
Point In Time [Member] | Aerospace [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 194,807 | 154,323 | 552,895 | 428,212 |
Point In Time [Member] | Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 208,597 | 119,808 | 526,096 | 367,019 |
Over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 397,259 | 340,201 | 1,058,505 | 947,526 |
Over Time [Member] | Aerospace [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 285,724 | 247,389 | 760,338 | 682,692 |
Over Time [Member] | Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 111,535 | $ 92,812 | $ 298,167 | $ 264,834 |
Revenue (Schedule of Accounts R
Revenue (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Contract With Customer Asset [Line Items] | ||
Total billed receivables | $ 446,699 | $ 368,769 |
Current unbilled receivables (contract assets) | 294,806 | 245,117 |
Total accounts receivable | 741,505 | 613,886 |
Less: Allowance for uncollectible amounts | (8,700) | (3,922) |
Total accounts receivable, net | 732,805 | 609,964 |
Trade Accounts Receivable [Member] | ||
Contract With Customer Asset [Line Items] | ||
Billed receivables | 408,601 | 359,364 |
Other (Chinese Financial Institutions) [Member] | ||
Contract With Customer Asset [Line Items] | ||
Billed receivables | $ 38,098 | $ 9,405 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |||||
Noncurrent unbilled receivables | $ 10,099 | $ 10,099 | $ 6,649 | ||
Revenue from contract liabilities | $ 4,645 | $ 5,140 | $ 18,829 | $ 18,359 |
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 | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenue From Contract With Customer [Abstract] | |||||
Balance, beginning | $ 9,949 | $ 3,141 | $ 3,922 | $ 3,664 | |
Changes in estimates | 77 | 356 | 6,463 | 783 | |
Write-offs | (1,271) | (1,601) | (43) | ||
Other | [1] | (55) | (454) | (84) | (1,361) |
Balance, ending | $ 8,700 | $ 3,043 | $ 8,700 | $ 3,043 | |
[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 | Jun. 30, 2023 | Sep. 30, 2022 |
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | $ 31,567 | $ 30,663 |
Noncurrent contract liabilities | 412,608 | 396,345 |
Deferred Revenue From Material Rights From GE Joint Venture Formation [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 6,049 | 5,754 |
Noncurrent contract liabilities | 235,686 | 234,516 |
Deferred Revenue From Advance Invoicing And/Or Prepayments From Customers [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 4,771 | 4,120 |
Noncurrent contract liabilities | 3,277 | 38 |
Liability Related To Customer Supplied Inventory [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 12,841 | 12,442 |
Deferred Revenue From Material Rights Related To Engineering And Development Funding [Member] | ||
Contract With Customer Liability [Line Items] | ||
Current contract liabilities | 7,906 | 8,347 |
Noncurrent contract liabilities | $ 173,645 | $ 161,791 |
Revenue (Narrative - Performanc
Revenue (Narrative - Performance Obligations) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Remaining performance obligation amount | $ 2,120,096 | $ 1,558,588 |
Material Rights [Member] | ||
Remaining performance obligation amount | $ 481,417 | $ 448,370 |
Revenue (Narrative - Performa_2
Revenue (Narrative - Performance Obligations) (Details1) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Remaining performance obligation amount | $ 2,120,096 | $ 1,558,588 |
Material Rights [Member] | ||
Remaining performance obligation amount | $ 481,417 | $ 448,370 |
Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 6 months | |
Remaining performance obligation amount | $ 4,594 | |
Remaining performance obligation, expected timing of satisfaction, year | 2023 | |
Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 1 year | |
Remaining performance obligation amount | $ 15,510 | |
Remaining performance obligation, expected timing of satisfaction, year | 2024 | |
Aerospace [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 2 years | |
Maximum [Member] | Material Rights [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-10-01 | ||
Period of remaining performance obligation, expected timing of satisfaction | 40 years |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 800,663 | $ 614,332 | $ 2,137,496 | $ 1,742,757 |
Aerospace [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 480,531 | 401,712 | 1,313,233 | 1,110,904 |
Aerospace [Member] | Commercial OEM [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 186,173 | 131,968 | 484,319 | 359,683 |
Aerospace [Member] | Commercial Aftermarket [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 139,518 | 108,695 | 405,606 | 303,335 |
Aerospace [Member] | Defense OEM [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 101,008 | 115,205 | 278,577 | 318,392 |
Aerospace [Member] | Defense Aftermarket [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 53,832 | 45,844 | 144,731 | 129,494 |
Industrial [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 320,132 | 212,620 | 824,263 | 631,853 |
Industrial [Member] | Reciprocating Engines [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | 242,040 | 154,090 | 612,655 | 469,087 |
Industrial [Member] | Industrial Turbines [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net sales | $ 78,092 | $ 58,530 | $ 211,608 | $ 162,766 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation of Net Earnings to Net Earnings Per Share Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net earnings | $ 84,599 | $ 39,446 | $ 149,716 | $ 117,657 |
Denominator: | ||||
Basic shares outstanding | 60,056 | 60,506 | 59,843 | 62,052 |
Dilutive effect of stock options and restricted stock | 1,535 | 1,582 | 1,407 | 1,885 |
Diluted shares outstanding | 61,591 | 62,088 | 61,250 | 63,937 |
Income per common share: | ||||
Basic earnings per share | $ 1.41 | $ 0.65 | $ 2.50 | $ 1.90 |
Diluted earnings per share | $ 1.37 | $ 0.64 | $ 2.44 | $ 1.84 |
Earnings Per Share (Anti-diluti
Earnings Per Share (Anti-dilutive Stock Options Excluded from Computation of Earnings Per Share) (Details) - Stock Options [Member] - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Options | 564 | 1,048 | 1,554 | 479 |
Weighted-average option price | $ 114.70 | $ 110.49 | $ 102.06 | $ 117.45 |
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 | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Weighted-average treasury stock shares held for deferred compensation obligations | 62 | 140 | 96 | 154 |
Leases (Lease-Related Assets an
Leases (Lease-Related Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Assets: | ||
Operating lease | $ 25,100 | $ 25,144 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets Noncurrent | Other Assets Noncurrent |
Finance lease | $ 4,396 | $ 5,474 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property Plant And Equipment Net | Property Plant And Equipment Net |
Total lease assets | $ 29,496 | $ 30,618 |
Current liabilities: | ||
Operating lease | $ 4,764 | $ 4,587 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities Current | Accrued Liabilities Current |
Finance lease | $ 914 | $ 856 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long Term Debt Current | Long Term Debt Current |
Noncurrent liabilities: | ||
Operating lease | $ 20,924 | $ 21,443 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Noncurrent | Other Liabilities Noncurrent |
Finance lease | $ 3,770 | $ 4,405 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long Term Debt Noncurrent | Long Term Debt Noncurrent |
Total lease liabilities | $ 30,372 | $ 31,291 |
Leases (Lease-Related Expenses)
Leases (Lease-Related Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Leases [Abstract] | |||||
Operating lease expense | $ 1,563 | $ 1,549 | $ 4,636 | $ 4,809 | |
Amortization of finance lease assets | 251 | 116 | 663 | 290 | |
Interest on finance lease liabilities | 43 | 14 | 117 | 30 | |
Variable lease expense | 225 | 226 | 680 | 832 | |
Short-term lease expense | 44 | 44 | 152 | 134 | |
Sublease (income) | [1] | (192) | |||
Total lease expense | $ 2,126 | $ 1,949 | $ 6,248 | $ 5,903 | |
[1] Relates to two separate subleases Woodward entered into for a leased manufacturing building in Niles, Illinois, each of which expired during fiscal year 2022. |
Leases (Lease-Related Supplemen
Leases (Lease-Related Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases | $ 3,879 | $ 4,136 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases | 117 | 30 |
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for finance leases | 535 | 690 |
Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases | 1,841 | 9,997 |
Right-of-use assets obtained in exchange for recorded lease obligations: Finance leases | $ 48 | $ 1,260 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Revenue included embedded operating leases | $ 1,466 | $ 1,303 | $ 4,252 | $ 3,969 |
Leases (Property, Plant and Equ
Leases (Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Leases [Abstract] | ||
Property, plant and equipment leased through embedded leasing arrangements | $ 46,916 | $ 44,912 |
Less accumulated depreciation | (28,249) | (25,508) |
Property, plant and equipment leased through embedded leasing arrangements, net | $ 18,667 | $ 19,404 |
Joint Venture (Unamortized Defe
Joint Venture (Unamortized Deferred Revenue from JV) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Schedule Of Equity Method Investments [Line Items] | ||
Accrued liabilities | $ 6,049 | $ 5,754 |
Other liabilities | $ 235,686 | $ 234,516 |
Joint Venture (Narrative) (Deta
Joint Venture (Narrative) (Details) - Woodward and General Electric Joint Venture [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule Of Equity Method Investments [Line Items] | ||||||
Cash received annually from formation of joint venture | $ 4,894 | $ 4,894 | $ 4,894 | |||
Sales [Member] | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Amortization of deferred income recognized as an increase to sales | $ 1,395 | $ 905 | 3,429 | $ 2,632 | ||
Reduction to sales related to royalties owed to joint venture | $ 14,396 | $ 7,912 | $ 34,854 | $ 21,058 |
Joint Venture (Other Income Rel
Joint Venture (Other Income Related JV) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Other income | $ 8,836 | $ 3,860 | $ 21,877 | $ 12,675 |
Woodward and General Electric Joint Venture [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Other income | $ 8,836 | $ 3,860 | $ 21,877 | $ 12,675 |
Joint Venture (Cash Distributio
Joint Venture (Cash Distribution from JV) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Woodward and General Electric Joint Venture [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Cash distributions | $ 9,000 | $ 4,000 | $ 19,000 | $ 13,000 |
Joint Venture (Net Sales to the
Joint Venture (Net Sales to the JV) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Woodward and General Electric Joint Venture [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Net sales | [1] | $ 11,568 | $ 6,698 | $ 25,365 | $ 19,245 |
[1] Net sales included a reduction of $ 14,396 for the three months and $ 34,854 for the nine months ended June 30, 2023 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers, compared to a reduction to sales of $ 7,912 for the three months and $ 21,058 for the nine months ended June 30, 2022 . |
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 | Jun. 30, 2023 | Sep. 30, 2022 |
Schedule Of Equity Method Investments [Line Items] | ||
Accounts receivable | $ 6,756 | $ 4,172 |
Accounts payable | 5,092 | 4,069 |
Other assets | $ 11,059 | $ 8,181 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Financial Assets that are Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Financial assets: | ||
Total financial assets | $ 54,862 | $ 98,573 |
Financial liabilities: | ||
Total financial liabilities | 1,987 | |
Cross Currency Interest Rate Swaps [Member] | ||
Financial assets: | ||
Cross-currency interest rate swaps | 38,168 | |
Financial liabilities: | ||
Cross-currency interest rate swaps | 1,987 | |
Level 1 [Member] | ||
Financial assets: | ||
Total financial assets | 54,862 | 60,405 |
Level 2 [Member] | ||
Financial assets: | ||
Total financial assets | 38,168 | |
Financial liabilities: | ||
Total financial liabilities | 1,987 | |
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 | 1,987 | |
Investments in Term Deposits with Foreign Banks [Member] | ||
Financial assets: | ||
Investments | 28,313 | 37,605 |
Investments in Term Deposits with Foreign Banks [Member] | Level 1 [Member] | ||
Financial assets: | ||
Investments | 28,313 | 37,605 |
Equity Securities [Member] | ||
Financial assets: | ||
Equity securities | 26,549 | 22,800 |
Equity Securities [Member] | Level 1 [Member] | ||
Financial assets: | ||
Equity securities | $ 26,549 | $ 22,800 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - Level 2 [Member] - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
ASSETS | ||
Investments in short-term time deposits, Estimated Fair Value | $ 6,159 | $ 8,026 |
Liabilities: | ||
Long-term debt, Estimated Fair Value | 674,844 | 646,696 |
Investments in short-term time deposits, Carrying Cost | 6,189 | 7,893 |
Long-term debt, Carrying Cost | 728,590 | 712,054 |
Long Term Notes Receivable from Municipalities [Member] | ||
ASSETS | ||
Notes receivable, Estimated Fair Value | 8,974 | 9,010 |
Liabilities: | ||
Notes receivable, Carrying Cost | $ 8,794 | $ 8,992 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Narrative) (Details) - Measurement Input, Discount Rate [Member] | Jun. 30, 2023 | Sep. 30, 2022 |
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 | |
Long Term Notes Receivable from Municipalities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Interest rate used to measure municipal notes | 2.7 | 3.5 |
Investments in Short-Term Time Deposits [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Interest rate used to measure short-term time deposits | 7 | 6.1 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | May 31, 2020 USD ($) Swap Loan | Sep. 23, 2016 EUR (€) | |
Derivative Instruments Gain Loss [Line Items] | |||||||
Remaining unrecognized gains (losses) associated with derivative instruments included in AOCI | $ 6,034 | $ 6,034 | $ (6,338) | ||||
Amount reclassified from accumulated other comprehensive losses to interest expense | $ 63 | ||||||
Derivative Instrument, Gain Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | ||||||
2016 Note Purchase Agreements [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Issuance date | Sep. 23, 2016 | ||||||
Face amount | € | € 160,000,000 | ||||||
Series M Notes [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Face amount | € | € 40,000,000 | ||||||
Maturity date | Sep. 23, 2026 | ||||||
Gain (Loss) on foreign currency transaction designated as a hedge of a net investment in a foreign subsidiary | 139 | $ 2,887 | $ (4,293) | $ 4,631 | |||
2020 Fixed-Rate Cross-Currency Swaps [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | $ 400,000 | $ 400,000 | $ 400,000 | ||||
2020 Fixed-Rate Cross-Currency Swaps [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, number of instruments | Swap | 5 | ||||||
2020 Floating-Rate Cross-Currency Swap [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, notional amount | $ 45,000 | ||||||
Fixed-Rate Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative, number of instruments | Loan | 5 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Impact of Derivative Instruments on Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of (Income) Expense Recognized in Earnings on Derivative | $ (1,429) | $ (26,968) | $ 44,377 | $ (43,299) |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | 9,389 | (34,207) | 44,073 | (58,987) |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | 1,429 | (26,968) | 44,377 | (43,299) |
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 | $ (1,087) | $ 939 | $ (2,006) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling General And Administrative Expense | Selling General And Administrative Expense | Selling General And Administrative Expense | Selling General And Administrative Expense |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | $ (42) | $ (903) | $ 875 | $ (1,960) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling General And Administrative Expense | Selling General And Administrative Expense | Selling General And Administrative Expense | Selling General And Administrative Expense |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ 2 | $ (1,087) | $ 939 | $ (2,006) |
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 | $ (1,431) | $ (25,881) | $ 43,438 | $ (41,293) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling General And Administrative Expense | Selling General And Administrative Expense | Selling General And Administrative Expense | Selling General And Administrative Expense |
Amount of (Gain) Loss Recognized in Accumulated OCI on Derivative | $ 9,431 | $ (33,304) | $ 43,198 | $ (57,027) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling General And Administrative Expense | Selling General And Administrative Expense | Selling General And Administrative Expense | Selling General And Administrative Expense |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Earnings | $ (1,431) | $ (25,881) | $ 43,438 | $ (41,293) |
Supplemental Statement of Cas_3
Supplemental Statement of Cash Flows Information (Schedule of Supplemental Statement of Cash Flows Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | ||||
Interest paid, net of amounts capitalized | $ 31,116 | $ 23,509 | ||
Income taxes paid | 60,334 | 25,625 | ||
Income tax refunds received | 1,459 | 7,240 | ||
Non-cash activities: | ||||
Purchases of property, plant and equipment on account | 2,612 | 4,386 | ||
Common shares issued from treasury to settle benefit obligations | $ 19,307 | $ 17,168 | $ 19,467 | $ 17,168 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2022 | Dec. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 798,575 | $ 772,559 | ||
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2023 | 10,019 | |||
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2024 | 32,919 | |||
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2025 | 27,806 | |||
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2026 | 27,745 | |||
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2027 | 27,670 | |||
P M Controls [Member] | ||||
Business Acquisition [Line Items] | ||||
Total cash consideration | $ 22,890 | |||
Measurement period adjustment reduced intangible assets | $ (1,042) | |||
Working capital adjustment resulting in reduction of goodwill | $ (863) | |||
Goodwill | 8,705 | 8,705 | ||
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2023 | 1,191 | |||
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2024 | 865 | |||
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2025 | 757 | |||
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2026 | 757 | |||
Future amortization expense associated with the acquired intangibles for fiscal year ended September 30, 2027 | $ 757 | |||
P M Agreements [Member] | P M Controls [Member] | ||||
Business Acquisition [Line Items] | ||||
Total cash consideration | $ 21,421 |
Acquisitions (Schedule of Purch
Acquisitions (Schedule of Purchase Price Consideration) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Aug. 31, 2022 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | ||
Total purchase price | $ (878) | |
P M Controls [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid to Sellers | $ 22,890 | |
Working capital adjustment | (878) | |
Less acquired cash and restricted cash | (1,341) | |
Plus settlement of pre-existing relationships | 750 | |
Total purchase price | $ 21,421 |
Acquisitions (Schedule of Asset
Acquisitions (Schedule of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Aug. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 798,575 | $ 772,559 | |
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 | 8,705 | $ 8,705 | |
Intangible assets | 8,874 | $ 8,874 | |
Total assets acquired | 27,251 | ||
Other current liabilities | (2,703) | ||
Deferred income tax liabilities | (1,842) | ||
Other noncurrent liabilities | (1,285) | ||
Total liabilities assumed | (5,830) | ||
Net assets acquired | $ 21,421 |
Acquisitions (Schedule of Finit
Acquisitions (Schedule of Finite-Lived Intangible Assets Acquired) (Details) - P M Controls [Member] - USD ($) $ in Thousands | 1 Months Ended | |
Aug. 31, 2022 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | ||
Intangible assets | $ 8,874 | $ 8,874 |
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 | $ 542 | |
Weighted- Average Useful Life | 15 months | |
Amortization Method | Straight-line |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | |
Inventory Net [Abstract] | |||
Raw materials | $ 145,513 | $ 126,264 | |
Work in progress | 129,080 | 123,005 | |
Component parts | [1] | 337,004 | 329,962 |
Finished goods | 80,194 | 70,019 | |
Customer supplied inventory | 12,841 | 12,442 | |
On-hand inventory for which control has transferred to the customer | (172,798) | (147,405) | |
Inventory, net | $ 531,834 | $ 514,287 | |
[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 | Jun. 30, 2023 | Sep. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 1,733,094 | $ 1,679,720 |
Less accumulated depreciation | (822,550) | (769,248) |
Property, plant, and equipment, net | 910,544 | 910,472 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 86,213 | 84,057 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 588,298 | 555,387 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 20,488 | 19,392 |
Machinery and Production Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 802,907 | 779,514 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 119,484 | 122,670 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 41,838 | 39,749 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | 20,125 | 20,162 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, gross | $ 53,741 | $ 58,789 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment (Schedule of Depreciation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property Plant And Equipment Net [Abstract] | ||||
Depreciation expense | $ 20,551 | $ 20,618 | $ 61,212 | $ 62,674 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 772,559 |
Additions | 180 |
Effects of Foreign Currency Translation | 25,836 |
Goodwill, Ending Balance | 798,575 |
Aerospace [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 455,423 |
Goodwill, Ending Balance | 455,423 |
Industrial [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 317,136 |
Additions | 180 |
Effects of Foreign Currency Translation | 25,836 |
Goodwill, Ending Balance | $ 343,152 |
Intangible Assets, Net (Schedul
Intangible Assets, Net (Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization of Finite-Lived Intangible | $ (434,696) | $ (399,673) |
Net Carrying Amount - Finite-Lived Intangible | 409,853 | |
Intangible Assets, Gross, Total | 907,590 | 860,253 |
Intangible Assets, Net, Total | 472,894 | 460,580 |
Customer Relationships And Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 670,454 | 634,600 |
Accumulated Amortization of Finite-Lived Intangible | (320,295) | (290,377) |
Net Carrying Amount - Finite-Lived Intangible | 350,159 | 344,223 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 11,794 | 12,361 |
Accumulated Amortization of Finite-Lived Intangible | (11,794) | (12,361) |
Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 161,740 | 154,894 |
Accumulated Amortization of Finite-Lived Intangible | (102,215) | (96,935) |
Net Carrying Amount - Finite-Lived Intangible | 59,525 | 57,959 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 561 | 1,560 |
Accumulated Amortization of Finite-Lived Intangible | (392) | |
Net Carrying Amount - Finite-Lived Intangible | 169 | 1,560 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 63,041 | 56,838 |
Aerospace [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization of Finite-Lived Intangible | (303,882) | (293,036) |
Intangible Assets, Gross, Total | 358,053 | 358,053 |
Intangible Assets, Net, Total | 54,171 | 65,017 |
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 | (233,002) | (223,565) |
Net Carrying Amount - Finite-Lived Intangible | 48,681 | 58,118 |
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 | (70,880) | (69,471) |
Net Carrying Amount - Finite-Lived Intangible | 5,490 | 6,899 |
Industrial [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization of Finite-Lived Intangible | (130,814) | (106,637) |
Intangible Assets, Gross, Total | 549,537 | 502,200 |
Intangible Assets, Net, Total | 418,723 | 395,563 |
Industrial [Member] | Customer Relationships And Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 388,771 | 352,917 |
Accumulated Amortization of Finite-Lived Intangible | (87,293) | (66,812) |
Net Carrying Amount - Finite-Lived Intangible | 301,478 | 286,105 |
Industrial [Member] | Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 11,794 | 12,361 |
Accumulated Amortization of Finite-Lived Intangible | (11,794) | (12,361) |
Industrial [Member] | Process Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 85,370 | 78,524 |
Accumulated Amortization of Finite-Lived Intangible | (31,335) | (27,464) |
Net Carrying Amount - Finite-Lived Intangible | 54,035 | 51,060 |
Industrial [Member] | Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value - Finite-Lived Intangible | 561 | 1,560 |
Accumulated Amortization of Finite-Lived Intangible | (392) | |
Net Carrying Amount - Finite-Lived Intangible | 169 | 1,560 |
Industrial [Member] | Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | $ 63,041 | $ 56,838 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Disposal Group [Member] | |
Intangible Assets, Net [Line Items] | |
Impairment of intangible assets, Indefinite-lived | $ 0 |
Intangible Assets, Net (Sched_2
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||||
Amortization expense | $ 9,493 | $ 9,309 | $ 28,089 | $ 28,584 |
Intangible Assets, Net (Sched_3
Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Intangible Assets Net Excluding Goodwill [Abstract] | |
2023 (remaining) | $ 10,019 |
2024 | 32,919 |
2025 | 27,806 |
2026 | 27,745 |
2027 | 27,670 |
Thereafter | 283,694 |
Net Carrying Amount - Finite-Lived Intangible | $ 409,853 |
Credit Facilities, Short-term_2
Credit Facilities, Short-term Borrowings and Long-term Debt (Narrative) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Short-term debt | $ 23,500 | $ 66,800 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 1,000,000 | |
Line of credit facility, maximum borrowing capacity extension | 1,500,000 | |
Principal amount borrowing outstanding | $ 23,500 | $ 66,800 |
Effective interest rate | 0.0633 | 0.0424 |
Foreign Lines of Credit and Overdraft Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | $ 0 | $ 0 |
Second Amended And Restated Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | 2,236 | |
Deferred debt issuance costs remaining | 1,046 | |
Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Balance of unamortized debt issuance costs, line of credit | $ 1,233 | $ 1,046 |
Minimum [Member] | SOFR [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.875% | |
Maximum [Member] | SOFR [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | ||
Accrued Liabilities Current [Abstract] | ||||||||
Salaries and other member benefits | $ 95,752 | $ 75,665 | ||||||
Product warranties and related liabilities | 39,424 | [1] | $ 46,492 | 40,042 | [1] | $ 14,645 | $ 12,984 | $ 17,481 |
Interest payable | 4,955 | 13,481 | ||||||
Accrued retirement benefits | 2,886 | 2,779 | ||||||
Net current contract liabilities | 31,567 | 30,663 | ||||||
Current portion of restructuring charges | 1,566 | 1,083 | ||||||
Taxes, other than income | 17,913 | 21,159 | ||||||
Other | 26,871 | 21,411 | ||||||
Accrued liabilities | $ 220,934 | $ 206,283 | ||||||
[1] Product warranties and related liabilities includes estimates related to product liabilities expected to be fully recoverable from insurance. |
Accrued Liabilities (Changes in
Accrued Liabilities (Changes in Accrued Product Warranties and Related Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Accrued Liabilities Current [Abstract] | ||||||
Beginning of period | $ 46,492 | $ 12,984 | $ 40,042 | [1] | $ 17,481 | |
Additions, net of recoveries | 2,424 | 3,021 | 22,847 | 3,243 | ||
Reductions for settlement | (9,433) | (1,239) | (23,636) | (5,908) | ||
Foreign currency exchange rate changes | (59) | (121) | 171 | (171) | ||
End of period | $ 39,424 | [1] | $ 14,645 | $ 39,424 | [1] | $ 14,645 |
[1] Product warranties and related liabilities includes estimates related to product liabilities expected to be fully recoverable from insurance. |
Accrued Liabilities (Narrative)
Accrued Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 5,172 | |||
Restructuring Charges | $ 5,172 | |||
Hydraulics Systems and Engine Systems [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1,083 | $ 5,008 | ||
Restructuring Reserve, Accrual Adjustment | $ 4,503 |
Accrued Liabilities (Changes _2
Accrued Liabilities (Changes in Restructuring Reserve Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 5,172 | |||
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, beginning of period | $ 1,083 | $ 5,008 | $ 5,008 | |
Restructuring Charges | 5,172 | |||
Payments | (4,677) | (505) | ||
Non-cash activity | (12) | |||
Restructuring charges, end of period | 1,566 | 4,503 | 1,083 | |
Employee Severance [Member] | Aerospace [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, beginning of period | 139 | |||
Payments | (139) | |||
Restructuring charges, end of period | 139 | |||
Employee Severance [Member] | Cost Reduction Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 5,172 | |||
Payments | (3,594) | |||
Non-cash activity | (12) | |||
Restructuring charges, end of period | 1,566 | |||
Employee Severance [Member] | Industrial [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, beginning of period | 944 | |||
Payments | $ (944) | |||
Restructuring charges, end of period | 944 | |||
Employee Severance [Member] | Hydraulics Systems Realignment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, beginning of period | 3,758 | 3,758 | ||
Payments | (505) | |||
Restructuring charges, end of period | 3,253 | |||
Employee Severance [Member] | Engine Systems Realignment [member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, beginning of period | 1,250 | $ 1,250 | ||
Restructuring charges, end of period | $ 1,250 |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | |
Other Liabilities Noncurrent [Abstract] | |||
Net accrued retirement benefits, less amounts recognized within accrued liabilities | $ 76,839 | $ 70,168 | |
Total unrecognized tax benefits | 8,156 | 9,757 | |
Noncurrent income taxes payable | 10,714 | 14,329 | |
Deferred economic incentives | [1] | 6,100 | 7,029 |
Noncurrent operating lease liabilities | 20,924 | 21,443 | |
Net noncurrent contract liabilities | 412,608 | 396,345 | |
Other | 12,150 | 10,185 | |
Other liabilities | $ 547,491 | $ 529,256 | |
[1] Woodward receives certain economic incentives from various state and local authorities related to capital expansion projects. Such amounts are initially recorded as deferred credits and are being recognized as a reduction to pre-tax expense over the economic lives of the related capital expansion projects. |
Other (Income) Expense, Net (Sc
Other (Income) Expense, Net (Schedule of Other (Income) Expense, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity interest in the earnings of the JV | $ (8,836) | $ (3,860) | $ (21,877) | $ (12,675) |
Net loss (gain) on sales of assets and businesses | (218) | (4) | 672 | (1,545) |
Rent income | (92) | (168) | (273) | (580) |
Other components of net periodic pension and other postretirement benefit, excluding service cost and interest expense | (2,521) | (2,884) | (7,681) | (8,720) |
Other | (77) | (176) | (145) | (509) |
Other (income) expense, net | (13,001) | (3,252) | (33,431) | (18,813) |
(Gain) Loss on Investments in Deferred Compensation Program [Member] | ||||
Net (gain) loss on investments in deferred compensation program | $ (1,257) | $ 3,840 | $ (4,127) | $ 5,216 |
Income Taxes (Tax Expense and E
Income Taxes (Tax Expense and Effective Tax Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Earnings before income taxes | $ 105,738 | $ 50,287 | $ 177,728 | $ 142,129 |
Income tax expense | $ 21,139 | $ 10,841 | $ 28,012 | $ 24,472 |
Effective tax rate | 20% | 21.60% | 15.80% | 17.20% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2022 | |
Income Taxes [Line Items] | ||
Gross unrecognized tax benefits | $ 10,533 | $ 11,938 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 6,781 | |
Possible decrease in unrecognized tax benefits liability | $ 2,522 | |
Domestic Tax Authority [Member] | ||
Income Taxes [Line Items] | ||
Year remaining open to tax examination | 2019 | |
State and Local Jurisdiction [Member] | ||
Income Taxes [Line Items] | ||
Year remaining open to tax examination | 2018 | |
Foreign Jurisdiction [Member] | ||
Income Taxes [Line Items] | ||
Year remaining open to tax examination | 2017 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of annual contribution equal to eligible prior year wages | 5% | |||
Common shares issued for benefit plans | $ 19,307 | $ 17,168 | $ 19,467 | $ 17,168 |
Treasury Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Common shares issued from treasury stock for benefit plans, shares | 187 | 150 | 189 | 150 |
Common shares issued for benefit plans | $ 8,524 | $ 6,567 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Amount of Expense Associated with Defined Contribution Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Company costs | $ 11,602 | $ 10,132 | $ 33,542 | $ 30,582 |
Retirement Benefits (Schedule_2
Retirement Benefits (Schedule of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 567 | $ 962 | $ 1,666 | $ 2,969 |
Interest cost | 2,629 | 1,715 | 7,806 | 5,204 |
Expected return on plan assets | (2,660) | (3,309) | (7,933) | (10,021) |
Amortization of: Net actuarial loss (gain) | (88) | 201 | (243) | 622 |
Amortization of: Prior service cost | 179 | 252 | 539 | 754 |
Net periodic retirement pension cost (benefit) | 627 | (179) | 1,835 | (472) |
Contributions paid | 470 | 434 | 1,763 | 1,933 |
Other Postretirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 1 | 1 |
Interest cost | 226 | 144 | 678 | 433 |
Amortization of: Net actuarial loss (gain) | (124) | (24) | (372) | (71) |
Net periodic retirement pension cost (benefit) | 103 | 121 | 307 | 363 |
Contributions paid - other postretirement plans | 415 | 451 | 1,300 | 1,379 |
United States [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 223 | 389 | 670 | 1,166 |
Interest cost | 1,824 | 1,320 | 5,473 | 3,961 |
Expected return on plan assets | (2,074) | (2,713) | (6,223) | (8,140) |
Amortization of: Net actuarial loss (gain) | 73 | 65 | 219 | 194 |
Amortization of: Prior service cost | 174 | 246 | 523 | 736 |
Net periodic retirement pension cost (benefit) | 220 | (693) | 662 | (2,083) |
Other Countries [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 344 | 573 | 996 | 1,803 |
Interest cost | 805 | 395 | 2,333 | 1,243 |
Expected return on plan assets | (586) | (596) | (1,710) | (1,881) |
Amortization of: Net actuarial loss (gain) | (161) | 136 | (462) | 428 |
Amortization of: Prior service cost | 5 | 6 | 16 | 18 |
Net periodic retirement pension cost (benefit) | 407 | 514 | 1,173 | 1,611 |
Contributions paid | $ 470 | $ 434 | $ 1,763 | $ 1,933 |
Retirement Benefits (Schedule_3
Retirement Benefits (Schedule of Estimated Remaining Cash Contributions) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Other Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the current fiscal year | $ 1,516 |
United Kingdom [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the current fiscal year | 186 |
Germany [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in the current fiscal year | $ 226 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jan. 25, 2023 | Jan. 31, 2022 | Jan. 26, 2022 | Nov. 30, 2019 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2024 | Sep. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of additional shares available for future grants | 500,000 | |||||||
Stock-based compensation expense, before tax | $ 1,265 | |||||||
Total unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 23,418 | $ 23,418 | ||||||
Forfeiture rate, Board of Directors | 0% | 0% | ||||||
Forfeiture rate, non-Board of Directors | 7.30% | 7.30% | ||||||
Unrecognized compensation cost is expected to be recognized over a weighted-average period | 1 year 10 months 24 days | |||||||
2017 Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of additional shares available for future grants | 800,000 | |||||||
Stock Options [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vested contractual term, in years | 10 years | |||||||
Vesting period, in years | 4 years | |||||||
Weighted-average exercise price | $ 102.36 | $ 83.88 | ||||||
Stock Options [Member] | Share-based Compensation Award Tranche One [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting rate | 25% | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period, in years | 4 years | |||||||
Vesting rate | 25% | |||||||
2019 Authorization [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock repurchase program authorized amount | $ 500,000 | $ 26,742 | $ 26,742 | |||||
Repurchase period in years | 3 years | |||||||
Stock repurchase program, number of shares authorized to be repurchased | 233,000 | 233,000 | ||||||
2022 Authorization [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock repurchase program authorized amount | $ 800,000 | $ 400,975 | $ 400,975 | |||||
Repurchase period in years | 2 years | |||||||
Stock repurchase program, number of shares authorized to be repurchased | 3,441,000 | 3,441,000 | ||||||
2022 Authorization [Member] | Scenario Forecast [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock repurchase program authorized amount | $ 26,369 | |||||||
Stock repurchase program, number of shares authorized to be repurchased | 274,000 | |||||||
2017 Authorization [Member] | 2017 Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares available for future grants | 2,711,000 | 2,711,000 | 2,938,000 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Activity for Stock Option Awards) (Details) - Stock Options [Member] - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options, Beginning balance | 5,574 | 5,339 |
Granted, Number of options | 4 | 526 |
Exercised, Number of options | (268) | (538) |
Forfeited, Number of options | (8) | (25) |
Number of options, Ending balance | 5,302 | 5,302 |
Weighted Average Exercise Price Per Share, Beginning balance | $ 76.35 | $ 74.40 |
Granted, Weighted Average Exercise Price Per Share | 102.36 | 83.88 |
Exercised, Weighted Average Exercise Price Per Share | 55.43 | 53.27 |
Forfeited, Weighted Average Exercise Price Per Share | 97.69 | 93.60 |
Weighted Average Exercise Price Per Share, Ending balance | $ 77.39 | $ 77.39 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Non-vested Stock Options) (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted-Average Grant Date Fair Value Per Share, Ending balance | $ 33.76 | $ 33.76 |
Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Options, Beginning balance | 1,675 | 1,812 |
Granted, Number of options | 4 | 526 |
Exercised, Number of options | shares | 282 | (925) |
Forfeited, Number of options | (6) | (22) |
Number of Options, Ending balance | 1,391 | 1,391 |
Weighted-Average Grant Date Fair Value Per Share, Beginning balance | $ 31.39 | $ 30.03 |
Granted, Weighted-Average Grant Date Fair Value Per Share | 42.82 | 33.74 |
Exercised, Weighted-Average Grant Date Fair Value Per Share | 19.77 | 26.23 |
Forfeited, Weighted-Average Grant Date Fair Value Per Share | $ 34.92 | $ 33.69 |
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 | 9 Months Ended | ||
Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options outstanding, Number of options | 5,302 | 5,574 | 5,339 |
Options vested and exercisable, Number of options | 3,911 | ||
Options vested and expected to vest, Number of options | 5,250 | ||
Options outstanding, Weighted-Average Exercise Price | $ 77.39 | $ 76.35 | $ 74.40 |
Options vested and exercisable, Weighted-Average Exercise Price Per Share | 71.50 | ||
Options vested and expected to vest, Weighted-Average Exercise Price Per Share | $ 77.25 | ||
Options outstanding, Weighted-Average Remaining Life in Years | 5 years 6 months | ||
Options vested and exercisable, Weighted-Average Remaining Life in Years | 4 years 7 months 6 days | ||
Options vested and expected to vest, Weighted-Average Remaining Life in Years | 5 years 6 months | ||
Options outstanding, Aggregate Intrinsic Value | $ 220,265 | ||
Options vested and exercisable, Aggregate Intrinsic Value | 185,525 | ||
Options vested and expected to vest, Aggregate Intrinsic Value | $ 218,835 |
Stockholders' Equity (Summary_2
Stockholders' Equity (Summary of Activity for Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units, Beginning balance | 171 | 59 |
Granted, Number of units | 2 | 115 |
Forfeited, Number of units | (1) | (2) |
Number of units, Ending balance | 172 | 172 |
Weighted-Average Grant Date Fair Value, Beginning balance | $ 92.19 | $ 98.29 |
Granted, Weighted-Average Grant Date Fair Value | 94.42 | 89 |
Forfeited, Weighted-Average Grant Date Fair Value | 83.24 | 83.24 |
Weighted-Average Grant Date Fair Value, Ending balance | $ 92.26 | $ 92.26 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Jun. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Information (Summary of
Segment Information (Summary of Consolidated Net Sales and Earnings by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 800,663 | $ 614,332 | $ 2,137,496 | $ 1,742,757 |
Interest expense, net | (11,659) | (8,180) | (34,772) | (23,542) |
Consolidated earnings before income taxes | 105,738 | 50,287 | 177,728 | 142,129 |
Aerospace [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 480,531 | 401,712 | 1,313,233 | 1,110,904 |
Segment earnings (loss) | 83,075 | 56,566 | 211,823 | 167,458 |
Industrial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 320,132 | 212,620 | 824,263 | 631,853 |
Segment earnings (loss) | 58,197 | 21,102 | 107,170 | 62,029 |
Unallocated Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment earnings (loss) | $ (23,875) | $ (19,201) | $ (106,493) | $ (63,816) |
Segment Information (Summary _2
Segment Information (Summary of Consolidated Total Assets by Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 |
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 4,009,563 | $ 3,806,446 |
Property, plant and equipment, net | 910,544 | 910,472 |
Other assets | 311,940 | 327,419 |
Unallocated Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 104,417 | 111,760 |
Other assets | 562,839 | 540,386 |
Aerospace [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | 1,819,068 | 1,773,854 |
Industrial [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated total assets | $ 1,523,239 | $ 1,380,446 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] | Jul. 26, 2023 $ / shares |
Subsequent Event [Line Items] | |
Dividend per share | $ 0.22 |
Dividend, payable date | Aug. 28, 2023 |
Dividend, record date | Aug. 14, 2023 |