Other Liabilities

9 Months Ended

Jun. 30, 2015

Note 15. Other liabilities



	June 30,		September 30,
	2015		2014
Net accrued retirement benefits, less amounts recognized within accrued liabilities	$	38,039	$	38,850
Total unrecognized tax benefits, net of offsetting adjustments		16,013		14,707
Acquired performance obligations and unfavorable contracts (1)		4,712		12,792
Deferred economic incentives (2)		19,107		18,408
Other		17,670		16,454
	$	95,541	$	101,211

(1)

In connection with Woodward’s acquisition of the Duarte Business in fiscal year 2013, Woodward assumed current and long-term performance obligations for contractual commitments that are expected to result in future economic losses. In addition, Woodward assumed current and long-term performance obligations for services to be provided to the Seller, offset by current and long-term assets related to contractual payments due from the Seller. The long-term portion of both obligations is included in “Other liabilities” as of September 30, 2014. As of June 30, 2015, “Other liabilities” includes the long-term portion of the acquired unfavorable contracts as only a current portion of the acquired performance obligations remains.

(2)

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 will be recognized as a reduction to non-income tax expense over the economic lives of the related capital expansion projects.