In fiscal year 2016, Woodward and General Electric Company (“GE”), consummated the formation of a strategic joint venture (the “JV”). GE has been acting through GE Aerospace since April 2024. The JV was formed 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. Woodward is accounting for its 50% ownership interest in the JV using the equity method of accounting. The JV is a related party to Woodward and transactions between Woodward and the JV are included in our Aerospace segment.

Unamortized deferred revenue from material rights in connection with the JV formation included:


	December 31, 2024		September 30, 2024
Accrued liabilities	$	6,760	$	6,580
Other liabilities		230,962		232,164

Amortization of the deferred revenue (material right) recognized as an increase to sales was $1,023 for the three months ended December 31, 2024, and $1,335 for the three months ended December 31, 2023.

Other income related to Woodward’s equity interest in the earnings of the JV was as follows:


	Three Months Ended December 31,
	2024		2023
Other income	$	10,156	$	10,155

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 December 31,
	2024		2023
Cash distributions	$	11,000	$	6,500

Net sales to the JV were as follows:


	Three Months Ended December 31,
	2024		2023
Net sales	$	20,696	$	20,272

Woodward net sales includes a reduction of $16,011 for the three months ended December 31, 2024, compared to $14,539 for the three months ended December 31, 2023 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers.

The Condensed Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows:


	December 31, 2024		September 30, 2024
Accounts receivable	$	3,745	$	5,205
Accounts payable		6,155		11,378
Other assets		18,375		19,219