Accrued Liabilities

3 Months Ended

Dec. 31, 2022

Accrued Liabilities Current [Abstract]

Accrued Liabilities

Note 16. Accrued liabilities

	December 31, 2022		September 30, 2022
Salaries and other member benefits	$	68,830	$	75,665
Product warranties and related liabilities(1)		49,526		40,042
Interest payable		4,807		13,481
Accrued retirement benefits		2,869		2,779
Net current contract liabilities		29,281		30,663
Current portion of restructuring charges		—		1,083
Taxes, other than income		17,892		21,159
Other		18,178		21,411
	$	191,383	$	206,283

(1) Product warranties and related liabilities includes estimates related to product liabilities expected to be fully recoverable from insurance.

Product warranties and related liabilities

Provisions of Woodward’s sales agreements include product warranties customary to these types of agreements. Accruals are established for specifically identified warranty issues and related liabilities for which are probable to result in future costs. Warranty costs are accrued as revenue is recognized on a non-specific basis whenever past experience indicates a normal and predictable pattern exists.

Changes in accrued product warranties and related liabilities were as follows:

	Three-Months Ended December 31,
	2022			2021
Beginning of period	$	40,042		$	17,481
Additions (reductions), net of recoveries		17,010			(762	)
Reductions for settlement		(7,702	)		(3,479	)
Foreign currency exchange rate changes		176			(37	)
End of period	$	49,526		$	13,203

Restructuring charges

In fiscal year 2022, the Company determined to implement a streamlined Aerospace and Industrial organizational and leadership structure designed to enhance the sales experience for customers, simplify operations, and increase profitability through improved execution. In connection with leadership changes arising from such reorganization, we recorded $1,083 of restructuring charges as nonsegment expenses, which were paid as of December 31, 2022.

In fiscal year 2021, the Company recorded aggregate restructuring charges totaling $5,008 as nonsegment expenses for two separate workforce management actions, one in our hydraulics systems business and one in our engine systems business. In fiscal year 2022, we experienced a challenging operating environment that included the ongoing impact of global supply chain and labor disruptions, along with high inflation, which resulted in changed business conditions compared to when we initially recorded the restructuring charges in fiscal year 2021. We are adapting to the changed business conditions by, among other initiatives, (i) developing and implementing plans to insource select machined components, (ii) redeploying talent and adding indirect resources to our factories to stabilize the production environment, and (iii) determining to retain employees that otherwise would have been impacted by the planned restructuring activities to support a stable workforce and effectively manage through attrition. As such, the previously remaining unpaid accrued restructuring charges, which amounted to $4,503, were no longer needed and were reversed in fiscal year 2022.

The summary of activity in accrued restructuring charges are as follows:

			Period Activity
	Balances as of September 30, 2022		Charges		Payments			Non-cash activity		Balances as of December 31, 2022
Workforce management costs associated with:
Aerospace	$	139	$	—	$	(139	)	$	—	$	—
Industrial		944		—		(944	)		—		—
Total	$	1,083	$	—	$	(1,083	)	$	—	$	—

			Period Activity
	Balances as of September 30, 2021		Charges		Payments			Non-cash activity		Balances as of December 31, 2021
Workforce management costs associated with:
Hydraulics Systems Realignment	$	3,758	$	—	$	(505	)	$	—	$	3,253
Engine Systems Realignment		1,250		—		—			—		1,250
Total	$	5,008	$	—	$	(505	)	$	—	$	4,503