Retirement Benefits

9 Months Ended

Jun. 30, 2024

Retirement Benefits [Abstract]

Retirement Benefits

Note 19. 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 "Retirement Savings Plan"). The Retirement Savings 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, in 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 180 shares of common stock for a value of $22,937 in the nine months ended June 30, 2024, compared to a total of 189 shares of common stock for a value of $19,467 in the nine months ended June 30, 2023.

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

	Three Months Ended June 30,				Nine Months Ended June 30,
	2024		2023		2024		2023
Company costs	$	14,020	$	11,602	$	38,097	$	33,542

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, 2023, 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
	2024			2023			2024			2023			2024			2023
Service cost	$	193		$	223		$	307		$	344		$	500		$	567
Interest cost		1,899			1,824			799			805			2,698			2,629
Expected return on plan assets		(2,271	)		(2,074	)		(596	)		(586	)		(2,867	)		(2,660	)
Amortization of:
Net actuarial loss (gain)		57			73			(168	)		(161	)		(111	)		(88	)
Prior service cost		174			174			6			5			180			179
Net periodic retirement pension cost	$	52		$	220		$	348		$	407		$	400		$	627
Contributions paid	$	—		$	—		$	315		$	470		$	315		$	470
	Nine Months Ended June 30,
	United States						Other Countries						Total
	2024			2023			2024			2023			2024			2023
Service cost	$	581		$	670		$	928		$	996		$	1,509		$	1,666
Interest cost		5,698			5,473			2,395			2,333			8,093			7,806
Expected return on plan assets		(6,813	)		(6,223	)		(1,790	)		(1,710	)		(8,603	)		(7,933	)
Amortization of:
Net actuarial loss (gain)		170			219			(507	)		(462	)		(337	)		(243	)
Prior service cost		523			523			17			16			540			539
Net periodic retirement pension cost	$	159		$	662		$	1,043		$	1,173		$	1,202		$	1,835
Contributions paid	$	—		$	—		$	1,654		$	1,763		$	1,654		$	1,763

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,
	2024			2023			2024			2023
Service cost	$	—		$	1		$	—		$	1
Interest cost		226			226			677			678
Amortization of:
Net actuarial gain		(139	)		(124	)		(417	)		(372	)
Net periodic other postretirement cost	$	87		$	103		$	260		$	307
Contributions paid	$	409		$	415		$	1,234		$	1,300

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 2024 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2024 will be as follows:

Retirement pension benefits:
United States	$	—
United Kingdom		414
Japan		—
Germany		320
Other postretirement benefits		1,442