Income Taxes (Tables)

12 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

Income taxes consisted of the following:

	Year Ended September 30,
	2024			2023			2022
Current:
Federal	$	46,102		$	41,195		$	21,869
State		4,841			2,641			2,310
Foreign		74,663			39,719			27,577
Deferred:
Federal		(18,888	)		(38,136	)		(13,216	)
State		(7,341	)		(10,006	)		(8,623	)
Foreign		(18,377	)		7,987			(1,717	)
	$	81,000		$	43,400		$	28,200

Earnings Before Income Taxes by Geographical Area

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

	Year Ended September 30,
	2024		2023		2022
United States	$	244,320	$	122,389	$	99,427
Other countries		209,651		153,379		100,471
	$	453,971	$	275,768	$	199,898

Schedule of Deferred Tax Assets and Liabilities

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

	September 30, 2024			September 30, 2023
Deferred tax assets:
Defined benefit plans, other postretirement	$	3,695		$	3,769
Foreign net operating loss carryforwards		6,547			3,748
Inventory		77,013			68,034
Stock-based and other compensation		48,360			51,099
Deferred revenue net of unbilled receivables		43,400			46,283
Other reserves		7,850			8,244
Tax credits and incentives		30,886			28,319
Lease obligations		6,851			6,103
Other		4,622			4,476
Capitalized research and development costs		63,080			37,328
Valuation allowance		(5,983	)		(3,827	)
Total deferred tax assets, net of valuation allowance		286,321			253,576
Deferred tax liabilities:
Goodwill and intangibles - net		(198,012	)		(194,891	)
Property, plant and equipment		(97,340	)		(99,547	)
Right of use assets		(6,691	)		(5,948	)
Defined benefit plans, pension		(13,133	)		(9,892	)
Other		(8,612	)		(17,568	)
Total deferred tax liabilities		(323,788	)		(327,846	)
Net deferred tax liabilities	$	(37,467	)	$	(74,270	)

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

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

	Year Ending September 30,
	2024			2023			2022
Percent of pretax earnings
Statutory tax rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal tax benefit		(0.4	)		(1.6	)		(2.5	)
Taxes on international activities		(0.8	)		(0.6	)		0.8
Research credit		(2.1	)		(3.9	)		(4.5	)
Net excess income tax benefit from stock-based compensation		(3.0	)		(3.7	)		(2.5	)
Adjustments of prior period tax items		0.9			(1.3	)		—
Compensation and benefits		0.8			0.6			0.3
Distributable foreign earnings		1.4			4.6			—
Other items, net		—			0.6			1.5
Effective tax rate		17.8	%		15.7	%		14.1	%

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

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

	Year Ending September 30,
	2024			2023			2022
Beginning balance	$	11,112		$	11,938		$	15,199
Additions to current year tax positions		5,673			3,933			1,783
Reductions to prior year tax positions		(99	)		(141	)		(963	)
Additions to prior year tax positions		180			—			112
Lapse of applicable statute of limitations		(2,592	)		(4,618	)		(4,193	)
Ending balance	$	14,274		$	11,112		$	11,938