Note 17. Retirement benefits

Woodward provides various 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 U.S. defined contribution plan allows employees to defer part of their annual income for income tax purposes into their personal 401(k) accounts. The Company makes contributions to eligible employee accounts, which are also deferred for employee personal income tax purposes. Certain foreign employees are also eligible to participate in foreign plans.

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

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 Switzerland. 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 and their covered dependants and beneficiaries in the United States and the United Kingdom. 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.

In connection with the acquisition of the Duarte Business, Woodward did not assume the Seller’s postretirement benefit obligations under the Duarte Business’ defined benefit pension plan as they existed at the time of closing of the transaction. Under the terms of the Asset Purchase Agreement, Woodward established a new defined benefit pension plan for the Duarte Business employees who were beneficiaries of the Seller’s defined benefit pension plan (the “Duarte Pension Plan”). Subsequently, Woodward and the Duarte Union agreed that, effective as of the close of business on July 31, 2013, the Duarte Pension Plan would be amended to cease all future benefit accruals to current participants in the plan. In addition, the Duarte Pension Plan was closed to new entrants as of July 31, 2013.

U.S. GAAP requires that, for obligations outstanding as of September 30, 2012, 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 December 31,
	United States				Other Countries				Total
	2013		2012		2013		2012		2013		2012
Service cost	$	872	$	1,107	$	259	$	281	$	1,131	$	1,388
Interest cost		1,610		1,392		595		548		2,205		1,940
Expected return on plan assets		(2,434)		(2,045)		(757)		(679)		(3,191)		(2,724)
Amortization of:
Net actuarial (gain) loss		83		344		161		124		244		468
Prior service cost (benefit)		19		19		(1)		(2)		18		17
Net periodic retirement pension (benefit) cost	$	150	$	817	$	257	$	272	$	407	$	1,089
Contributions paid	$	100	$	1,500	$	1,571	$	1,814	$	1,671	$	3,314

The components of the net periodic other postretirement benefit costs recognized are as follows:



	Three-Months Ended
	December 31,
	2013		2012
Service cost	$	12	$	18
Interest cost		358		311
Amortization of:
Net actuarial (gain) loss		(50)		(17)
Prior service cost (benefit)		(40)		(40)
Net periodic other postretirement (benefit) cost	$	280	$	272
Contributions paid	$	506	$	756

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 2014 may differ from the current estimate. Woodward estimates its remaining cash contributions in fiscal year 2014 will be as follows:



Retirement pension benefits:
United States	$	400
United Kingdom		1,402
Japan		-
Switzerland		187
Other postretirement benefits		3,448

Multiemployer defined benefit plans

Woodward operates two multiemployer defined benefit plans for certain employees in the Netherlands and Japan. The amounts of contributions associated with the multiemployer plans were as follows:

Three-Months Ended

December 31,

Company costs