XML 24 R14.htm IDEA: XBRL DOCUMENT v3.21.1
Joint Venture
6 Months Ended
Mar. 31, 2021
Equity Method Investments And Joint Ventures [Abstract]  
Joint Venture

Note 6.  Joint venture

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:

 

 

 

March 31, 2021

 

 

September 30, 2020

 

Accrued liabilities

 

$

4,419

 

 

$

4,066

 

Other liabilities

 

 

236,610

 

 

 

234,240

 

 

Amortization of the deferred revenue (material right) recognized as an increase to sales was $989 for the three-months and $2,171 for the six-months ended March 31, 2021, and $1,821 for the three-months and $3,529 for the six-months ended March 31, 2020.  

As part of the JV formation, GE pays contingent consideration to Woodward consisting of fifteen annual payments of $4,894 per year, which began in the second quarter of fiscal year 2017, subject to certain claw-back conditions.  Woodward received its annual payments of $4,894 during the three-months ended March 31, 2021 and 2020, which were recorded as deferred income and included in “Net cash provided by operating activities” on the Condensed Consolidated Statements of Cash Flows.

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

 

 

 

Three-Months Ended

March 31,

 

 

Six-Months Ended

March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Other income

 

$

3,779

 

 

$

4,681

 

 

$

6,165

 

 

$

7,893

 

 

Cash distributions to Woodward from the JV, recognized in “Net cash provided by operating activities” on the Condensed Consolidated Statements of Cash Flows, were as follows:

 

 

 

Three-Months Ended

March 31,

 

 

Six-Months Ended

March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cash distributions

 

$

3,500

 

 

$

-

 

 

$

7,000

 

 

$

3,000

 

 

Net sales to the JV were as follows:  

 

 

 

Three-Months Ended

March 31,

 

 

Six-Months Ended

March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net sales1

 

$

8,325

 

 

$

16,606

 

 

$

18,384

 

 

$

31,484

 

 

 

(1)

Net sales included a reduction of $6,635 for the three-months and $11,055 for the six-months ended March 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 $9,779 for the three-months and $17,013 for the six-months ended March 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:

 

 

 

March 31, 2021

 

 

September 30, 2020

 

Accounts receivable

 

$

3,526

 

 

$

3,062

 

Accounts payable

 

 

4,534

 

 

 

1,502

 

Other assets

 

 

8,288

 

 

 

9,123