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:

	December 31, 2021		September 30, 2021
Accrued liabilities	$	5,017	$	4,771
Other liabilities		233,055		234,237

Amortization of the deferred revenue (material right) recognized as an increase to sales was $936 for the three-months ended December 31, 2021, and $1,182 for the three-months ended December 31, 2020.

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

	Three-Months Ended December 31,
	2021		2020
Other income	$	4,675	$	2,386

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,
	2021		2020
Cash distributions	$	2,500	$	3,500

	Three-Months Ended December 31,
	2021		2020
Net sales¹	$	7,274	$	10,059

(1)

Net sales included a reduction of $5,946 for the three-months ended December 31, 2021 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 $4,420 for the three-months ended December 31, 2020.

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, 2021		September 30, 2021
Accounts receivable	$	3,445	$	3,639
Accounts payable		2,726		2,823
Other assets		9,163		6,988