WOODWARD, INC. AND SUBSIDIARIES

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

For the years ended September 30, 2017, 2016, and 2015

(in thousands)



Column A	Column B		Column C				Column D		Column E
			Additions
Description	Balance at Beginning of Year		Charged to Costs and Expenses		Charged to Other Accounts (a)		Deductions (b)		Balance at End of Year
Fiscal year 2017
Allowance for uncollectible accounts	$	2,540	$	1,063	$	449	$	(276)	$	3,776
Deferred tax asset valuation allowance		3,317		77		-		320		3,714
Fiscal year 2016
Allowance for uncollectible accounts		3,841		255		233		(1,789)		2,540
Deferred tax asset valuation allowance		6,804		53		-		(3,540)		3,317
Fiscal year 2015
Allowance for uncollectible accounts		7,078		364		487		(4,088)		3,841
Deferred tax asset valuation allowance		9,486		209		-		(2,891)		6,804

Notes:

(a)

Includes recoveries of accounts previously written off.

(b)

Represents accounts receivable written off against the allowance for collectible accounts and releases of valuation reserves to income tax expense. Also included are foreign currency exchange rate adjustments. Currency translation adjustments resulted in an increase in the reserves of $64 in fiscal year 2017, an increase in the reserve of $77 in fiscal year 2016, and a decrease in the reserve of $934 in fiscal year 2015.