Retirement Benefits

6 Months Ended

Mar. 31, 2022

Compensation And Retirement Disclosure [Abstract]

Retirement Benefits

Note 19.  Retirement benefits

Woodward provides various retirement 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 matching contributions to eligible employee accounts, which are also deferred for employee personal income tax purposes.  Certain non-U.S. employees are also eligible to participate in similar non-U.S. plans.

Woodward’s U.S. employees receive an annual contribution of Woodward stock, equal to 5% of their eligible prior year wages, to their personal Woodward Retirement Savings Plan accounts. Woodward fulfilled its annual Woodward stock contribution obligation using shares held in treasury stock by issuing a total of 150 shares of common stock for a value of $17,168 in the second quarter of fiscal year 2021, compared to a total of 128 shares of common stock for a value of $14,900 in the second quarter of fiscal year 2021.

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

	Three-Months Ended March 31,				Six-Months Ended March 31,
	2022		2021		2022		2021
Company costs	$	9,499	$	8,497	$	20,450	$	16,533

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 Germany.  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 dependents and beneficiaries in the United States.  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.

U.S. GAAP requires that, for obligations outstanding as of September 30, 2021, 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 March 31,
	United States						Other Countries						Total
	2022			2021			2022			2021			2022			2021
Service cost	$	388		$	432		$	609		$	736		$	997		$	1,168
Interest cost		1,321			1,239			422			343			1,743			1,582
Expected return on plan assets		(2,714	)		(3,536	)		(640	)		(625	)		(3,354	)		(4,161	)
Amortization of:
Net actuarial loss		64			135			146			234			210			369
Prior service cost		245			243			6			6			251			249
Net periodic retirement pension (benefit) cost	$	(696	)	$	(1,487	)	$	543		$	694		$	(153	)	$	(793	)
Contributions paid	$	—		$	—		$	811		$	675		$	811		$	675
	Six-Months Ended March 31,
	United States						Other Countries						Total
	2022			2021			2022			2021			2022			2021
Service cost	$	777		$	864		$	1,230		$	1,465		$	2,007		$	2,329
Interest cost		2,641			2,478			848			676			3,489			3,154
Expected return on plan assets		(5,427	)		(7,072	)		(1,285	)		(1,227	)		(6,712	)		(8,299	)
Amortization of:
Net actuarial loss		129			270			292			462			421			732
Prior service cost		490			485			12			12			502			497
Net periodic retirement pension (benefit) cost	$	(1,390	)	$	(2,975	)	$	1,097		$	1,388		$	(293	)	$	(1,587	)
Contributions paid	$	—		$	—		$	1,499		$	1,218		$	1,499		$	1,218

The components of net periodic retirement pension costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net”, and the interest component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings.  

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

	Three-Months Ended March 31,					Six-Months Ended March 31,
	2022			2021		2022			2021
Service cost	$	—		$	1	$	—		$	1
Interest cost		145			149		289			299
Amortization of:
Net actuarial (gain) loss		(23	)		8		(47	)		15
Prior service cost		—			1		—			1
Net periodic other postretirement cost	$	122		$	159	$	242		$	316
Contributions paid	$	457		$	940	$	928		$	978

The components of net periodic other postretirement benefit costs other than the service cost and interest cost components are included in the line item “Other (income) expense, net”, and the interest cost component is included in the line item “Interest expense” in the Condensed Consolidated Statements of Earnings.  

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 2022 may differ from the current estimate.  Woodward estimates its remaining cash contributions in fiscal year 2022 will be as follows:

Retirement pension benefits:
United States	$	—
United Kingdom		627
Japan		—
Germany		348
Other postretirement benefits		1,871