<SEC-DOCUMENT>0000108312-14-000009.txt : 20140721
<SEC-HEADER>0000108312-14-000009.hdr.sgml : 20140721
<ACCEPTANCE-DATETIME>20140314143712
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000108312-14-000009
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20140314

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Woodward, Inc.
		CENTRAL INDEX KEY:			0000108312
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRICAL INDUSTRIAL APPARATUS [3620]
		IRS NUMBER:				361984010
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1000 EAST DRAKE ROAD
		CITY:			FORT COLLINS
		STATE:			CO
		ZIP:			80525
		BUSINESS PHONE:		970-482-5811

	MAIL ADDRESS:	
		STREET 1:		1000 EAST DRAKE ROAD
		CITY:			FORT COLLINS
		STATE:			CO
		ZIP:			80525

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	WOODWARD GOVERNOR CO
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<!--HTML document created with Crossfire by Rivet Software-->
<!--Rivet Edgarization Module Version: 5.8.101.0-->
<!--Created on: 3/14/2014 12:34:33 PM-->
<html>
	<head>
		<title>
			a3b476f2087c4be
		</title>
	</head>
	<body><div style="margin-left:72pt;margin-right:72pt;"><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:0pt;text-align:center;border-bottom:1pt none #D9D9D9 ;text-decoration:none;line-height:100%;font-family:Times New Roman;font-weight:bold;font-size: 12pt">
			<font style="display: inline;font-weight:normal;text-decoration:none;">March</font><font style="display: inline;font-weight:normal;text-decoration:none;"> 14</font><font style="display: inline;font-weight:normal;text-decoration:none;">, 2014</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-decoration:none;line-height:100%;font-family:Times New Roman;font-weight:bold;font-size: 12pt">
			<font style="display: inline;text-decoration:none;">&nbsp;</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;text-decoration:none;line-height:100%;font-family:Times New Roman;font-weight:bold;font-size: 12pt">
			<font style="display: inline;text-decoration:none;">&nbsp;</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;line-height:100%;text-decoration:underline;font-family:Times New Roman;font-weight:bold;font-size: 12pt">
			<a name="_DV_M2"></a><font style="display: inline;">BY EDGAR TRANSMISSION</font>
		</p>
		<p style="margin:0pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<a name="_DV_M4"></a><font style="display: inline;">Division of Corporation Finance</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<a name="_DV_M5"></a><font style="display: inline;">Securities and Exchange Commission</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<a name="_DV_M6"></a><font style="display: inline;">100 F Street N.E.</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<a name="_DV_M7"></a><font style="display: inline;">Washington, D.C.&nbsp;&nbsp;20549</font>
		</p>
		<p style="margin:0pt 0pt 12pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">Attention:&nbsp;&nbsp;Kevin L. Vaughn</font><br /><font style="display: inline;"></font>
		</p>
		<p style="margin:0pt 0pt 12pt 72pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;text-indent:-36pt;font-family:Times New Roman;font-weight:bold;font-size: 12pt">
			<a name="_DV_M8"></a><font style="display: inline;font-weight:normal;">Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="display: inline;font-weight:normal;">Woodward, Inc. </font><br /><font style="display: inline;font-weight:normal;">Form 10-K for the Fiscal Year Ended September 30, 2013</font><br /><font style="display: inline;font-weight:normal;">Filed November 14, 2013</font><br /><font style="display: inline;font-weight:normal;">File No. 000-08408</font>
		</p>
		<p style="margin:6pt 0pt;text-indent:0pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-weight:bold;font-size: 12pt">
			<a name="_DV_M9"></a><font style="display: inline;font-weight:normal;">Ladies and Gentlemen:</font>
		</p>
		<p style="margin:6pt 0pt;text-indent:36pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<a name="_DV_M10"></a><a name="_DV_M11"></a><font style="display: inline;font-size:12pt;">Set forth below are the responses of Woodward, Inc. (&#x201C;Woodward,&#x201D; the &#x201C;Company,&#x201D; &#x201C;we,&#x201D; &#x201C;us,&#x201D; or &#x201C;our&#x201D;) to the comments of the staff of the Division of Corporation Finance (the &#x201C;Staff&#x201D;), contained in your letter dated February 28, 2014, with respect to the Annual Report on Form 10-K for the fiscal year ended September 30, 2013, filed November 14, 2013.&nbsp;&nbsp;For your reference, we have repeated below in italics the Staff&#x2019;s comments immediately prior to the responses.</font>
		</p>
		<p style="margin:6pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-size:12pt;text-decoration:underline;">Form 10-K for the Fiscal Year Ended September 30, 2013 </font>
		</p>
		<p style="margin:6pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-size:12pt;text-decoration:underline;">Item 8. Financial Statements and Supplementary Data, page 55 </font>
		</p>
		<p style="margin:6pt 0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-size:12pt;text-decoration:underline;">Note 1. Operations and Summary of Significant Accounting Policies, page 61 </font>
		</p>
		<p style="margin:6pt 0pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-size:12pt;text-decoration:underline;">- Accounts Receivable, page 62</font>
		</p>
		<p style="margin:0pt;text-indent:36pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-style:italic;">1. </font><font style="display: inline;font-style:italic;">&nbsp;</font><font style="display: inline;font-style:italic;">We note your disclosures regarding your acceptance of bank drafts authorized by large Chinese banks in exchange for extended payment terms to certain customers. Please tell us more about the structure of these transactions, including a discussion of the underlying reasons for these transactions and the period of the payment extensions. Tell us who the obligor is in these arrangements and explain to us how you would collect amounts due should the customer not make required payments. Finally, explain how you have considered the extended payment arrangements in connection with your evaluation of the appropriate revenue recognition for transactions with these customers.</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 18pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Response:</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Our standard payment terms with certain Chinese customers allow for satisfaction of balances receivable by Woodward, when due to Woodward, by either payment of cash or by the transfer of one or more bank drafts to Woodward.&nbsp; </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Bank drafts are financial instruments issued by Chinese financial institutions as part of financing arrangements between the financial institution and a customer of the financial </font>
		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">1</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;;font-size: 12pt"><font style="display: inline;font-family:Times New Roman;font-size:12pt;">institution. Bank drafts represent a commitment by the issuing financial institution to pay a certain amount of money at a specified future maturity date to the legal owner of the bank draft as of the maturity date. The maturity date of bank drafts varies from the issuance date, but it is our policy to only acc</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">ept bank drafts with maturity dates up to 180 days from our receipt date. Bank draft</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">s</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> may be issued in hard-copy paper form or as an electronic document.</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Upon issuance, bank drafts </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">generally </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">are initially payable to the customer of the Chinese financial institution </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">that has an </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">arrangement with that financial institution. Thereafter, bank drafts may be transferred, by endorsement, from one holder to another, similar to </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">transfer of a check from one holder to another in the United States via endorsement of the check by the payee to another party. Multiple endorsements and transfers of the same bank draft may occur prior to maturity. Both paper and electronic bank drafts may be transferred via endorsement any number of times from one party to another.</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Woodward accepts bank drafts because</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> it is a common business practice in China for customers to pay outstanding amounts due to vendors, such as Woodward, with bank drafts. We also believe it is a common business practice in China for holders of bank drafts to both receive bank drafts as payment for amounts owed to them and to transfer the same or different bank drafts to third party vendors in payment for amounts owed by the holder. Accordingly</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> as we negotiate </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">commercial </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">terms with our customers</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> we have specifically provided for acceptance of bank drafts as a valid payment method. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The issuing financial institution is the obligor, not our customers. Upon </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">our </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">acceptance of a bank draft, our customer has no further obligation to pay us. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Woodward classifies bank drafts held as current accounts receivable, since the ultimate collection of the bank draft completes the revenue collection cycle with our customers and since in all cases, collection is expected to be received within one year of the revenue recognition date</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> as it is our policy to only accept bank drafts with maturity dates up to 180 days from our receipt date</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">. &nbsp;</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">We do not believe that the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">extended payment arrangements</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> created by our acceptance of bank drafts from certain customers impacts </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">revenue recognition for transactions with th</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">o</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">se customers.</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> Staff Accounting Bulletin 13, </font><font style="display: inline;font-family:Times New Roman;font-style:italic;font-size:12pt;">Revenue Recognition</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">, provides that revenue generally is realized or realizable and earned when all of the following criteria are met:</font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:54pt;"><p style="width:54pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
				<font style="margin:6pt 0pt 0pt;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> 1.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Persuasive evidence of an arrangement exists; </font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:54pt;"><p style="width:54pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
				<font style="margin:6pt 0pt 0pt;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> 2.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Delivery has occurred or services have been rendered; </font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:54pt;"><p style="width:54pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
				<font style="margin:6pt 0pt 0pt;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> 3.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The seller&#x2019;s price to the buyer is fixed or determinable; and </font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:54pt;"><p style="width:54pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
				<font style="margin:6pt 0pt 0pt;border-top:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> 4.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Collectability is reasonably assured. </font></p></td></tr></table></div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">

		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">2</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;;font-size: 12pt"><font style="display: inline;font-family:Times New Roman;font-size:12pt;">We concluded that the acceptance of bank drafts has no impact on any of these criteria. Specifically:</font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:54pt;"><p style="width:54pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
				<font style="margin:6pt 0pt 0pt;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> 1.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Persuasive evidence of an arrangement exists &#x2013; How payment will ultimately be received has no impact on whether persuasive evidence of an arrangement exists as we have firm purchase orders in place from our Chinese customers. </font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:54pt;"><p style="width:54pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
				<font style="margin:6pt 0pt 0pt;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> 2.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Delivery has occurred or services have been rendered &#x2013; How payment will ultimately be received has no impact on whether delivery has occurred or services have been rendered. </font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:54pt;"><p style="width:54pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
				<font style="margin:6pt 0pt 0pt;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> 3.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The seller&#x2019;s price to the buyer is fixed or determinable &#x2013;Our selling price to the customer is fixed and does not change depending on whether the customer will ultimately satisfy its obligation to Woodward by payment of cash or by transfer of a bank draft.</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:54pt;"><p style="width:54pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
				<font style="margin:6pt 0pt 0pt;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> 4.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Collectability is reasonably assured &#x2013; We believe we have </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">instituted </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">adequate controls to safeguard our bank draft assets</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> whether in paper or electronic form</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> and </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">have </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">never had an issue with collectability on the bank drafts. Woodward has an acceptance policy where each bank draft is reviewed for, among other things, the credit worthiness of the bank, to mitigate collection risks.&nbsp;&nbsp;We do not believe there is a </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">significantly</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> different level of credit risk associated with the acceptance of bank drafts </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">as </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">compared to requiring our customers to pay us cash.&nbsp; </font></p></td></tr></table></div>
		<p style="margin:6pt 0pt 0pt 72pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:6pt 0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-size:12pt;text-decoration:underline;">- Note 21</font><font style="display: inline;font-size:12pt;text-decoration:underline;">, Segment</font><font style="display: inline;font-size:12pt;text-decoration:underline;"> Information, page 104</font>
		</p>
		<p style="margin:0pt;text-indent:36pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-style:italic;">2.&nbsp; </font><font style="display: inline;font-style:italic;">We note that you aggregate your operating segments into two reportable segments-Aerospace and Energy. We further note from pages 43-44 and throughout the filing that you recorded $15.7 million of charges related to your renewable power business based upon your decision to realign this business to the current economic environment and foreseeable future. Further, we note that you present non-GAAP financial measures of revenue and earnings in your Energy segment excluding the effects of your renewable power business. You state that the non-GAAP measure is provided in part because discrete economic events occurred in the renewable power business which impacted the comparability of segment results. Please provide us with your analysis as to how you continue to meet the aggregation criteria outlined in FASB ASC paragraph 280-10-50-11 for your Energy reportable segment, which includes the renewable power business. Specifically address how your conclusions considered the economic conditions leading up to and following the realignment of your renewable power business.</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 18pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Response:</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;text-decoration:underline;">Identification of operating segments </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">As </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">previously communicated to the S</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">taff </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">in our letter dated March 7, 2013, </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">as of July 31, 2012, in accordance with FASB ASC 280 &#x2013; </font><font style="display: inline;font-family:Times New Roman;font-style:italic;font-size:12pt;">Segment Reporting</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">, management identified five operating segments: Airframe Systems (</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">AS</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">), Aircraft Turbine Systems (</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">ATS</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">), Engine Systems (</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">ES</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">), Industrial Turbomachinery Systems (</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">ITS</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">) and Electrical Power Systems (</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">EPS</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">). </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">

		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">3</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;;font-size: 12pt"><font style="display: inline;font-family:Times New Roman;font-size:12pt;">As of October 1, 2012, the EPS operating segment was eliminated and its operations </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">became part of both </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the ES and ITS operating segments. </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Specifically, as of July 31, 2012, in accordance with FASB ASC 350 &#x2013; </font><font style="display: inline;font-family:Times New Roman;font-style:italic;font-size:12pt;">Goodwill</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">and as previously communicated to the Staff in our letter dated March 7, 2013,</font><font style="display: inline;font-family:Times New Roman;font-style:italic;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the EPS operating segment had four components: Wind Power Systems (</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">WPS</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">), Power Conversion Systems (</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">PCS</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">), Power Generation and Distribution (</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">PG&amp;D</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">), and Power Solutions (</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">PS</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">).&nbsp;&nbsp;Effective October 1, 2012, when the EPS operating segment was eliminated, the WPS and PCS components became part of our ITS operating segment and became our renewable power business. At the same time the PG&amp;D and PS components became part of our ES operating segment.</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> The inclusion of the prior components of the EPS operating segment into the current ES and ITS operating segments was based on the ultimate end markets for the products produced by each operating segment.</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Therefore, as of September 30, 2013, in accordance with FASB ASC 280, management identified four operating segments: AS, ATS, ES, and ITS. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Following the guidance of FASB ASC paragraph 280-10-50-11, the four operating segments are aggregated within two reportable segments, Aerospace and Energy, based on the strategic market served by each. </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">The </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">ATS</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> and A</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">S</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> operating segments are aggregated into our Aerospace reportable segment</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">. The ES and ITS operating segments are aggregated into </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">our</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> Energy reportable segment. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;text-decoration:underline;">Identification of the renewable power business as a component of the ITS operating segment </font>
		</p>
		<p style="margin:6pt 0pt 6pt 36pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">FASB ASC paragraph 280-10-50-11 states that:</font>
		</p>
		<p style="margin:6pt 0pt 6pt 54pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;An operating segment is a component of a public entity that has all of the following criteria:</font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 22.00pt; display: inline;">
			<p style="border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-weight:normal;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Times New Roman;font-size:12pt;;"> a)</font>
			</p>
		</td><td style="width:14pt;"><p style="width:14pt;width:14pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;">It engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same public entity).</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 22.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-weight:normal;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Times New Roman;font-size:12pt;;"> b)</font>
			</p>
		</td><td style="width:14pt;"><p style="width:14pt;width:14pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;">Its operating results are regularly reviewed by the public entity&#x2019;s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 22.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-weight:normal;border-top:1pt none #D9D9D9;line-height:100%;font-family:Times New Roman;font-size:12pt;;"> c)</font>
			</p>
		</td><td style="width:14pt;"><p style="width:14pt;width:14pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;">Its discrete financial information is available.&#x201D;</font></p></td></tr></table></div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Effective October 1, 2012, the discrete financial information of our renewable power business is reviewed regularly by Mr. James Rudolph, the President of our ITS operating segment. Mr. Rudolph is not our chief operating decision maker (</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">CODM</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">) but reports to our CODM. The operating results of our renewable power business are not regularly reviewed by our CODM to make decisions about resources to be allocated </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">or</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> to assess the performance of the business. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">As circumstances dictate, but not on a regular basis</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">, the CODM may review lower level information relative to product </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">lines being impact</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">ed</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> by unusual economic, political or other factors,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> for example, in order to effectively allocate resources and/or assess the </font>
		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">4</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;;font-size: 12pt"><font style="display: inline;font-family:Times New Roman;font-size:12pt;">performance of our operating segm</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">ents. We do not believe this ad-</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">hoc exposure could reasonably be considered regular review of such information by the CODM. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Our Board of Directors is generally provided with financial information relative to ou</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">r Aerospace and Energy reportable</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> segments and </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">is</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> not regularly presented with detailed information at the operating segment level or at lower levels</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">, including the results of our renewable power business</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">. &nbsp;</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Accordingly, effective October 1, 2012 and continuing through September 30, 2013, based on the guidance of FASB ASC paragraph 280-10-50-1</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">1</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">, we concluded that our renewable power business is a component within the ITS operating segment and is not an operating segment.</font>
		</p>
		<p style="margin:6pt 0pt 6pt 36pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;text-decoration:underline;">Aggregation of our ES and ITS operating segments into our Energy reportable segment</font>
		</p>
		<p style="margin:6pt 0pt 6pt 36pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">As of September 30, 2013, we evaluated the aggregation criteria outlined in FASB ASC paragraph 280-10-50-11 for our Energy reportable segment and concluded that it was appropriate to aggregate the ES and ITS operating segments into the Energy reportable segment. Since the renewable power business is a component of the ITS operating segment, our aggregation analysis did not specifically consider the renewable power business. However, as discussed below, we do not believe that the realignment of our renewable power business impacted our conclusion that the ES and ITS operating segments should be aggregated into our Energy reportable segment. </font>
		</p>
		<p style="margin:6pt 0pt 6pt 36pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">FASB ASC paragraph 280-10-50-11 provides the following specific aggregation criteria:</font>
		</p>
		<p style="margin:6pt 0pt 6pt 72pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;Operating segments often exhibit similar long-term financial performance if they have similar economic characteristics. For example, similar long-term average gross margins for two operating segments would be expected if their economic characteristics were similar. Two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the objectives and basic principle of this Subtopic, if the segments have similar economic characteristics, and if the segments are similar in all of the following areas:</font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> a.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The nature of the products and services</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> b.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The nature of the production processes</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> c.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The type or class of customer for their products and services</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> d.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The methods used to distribute their products or provide their services</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;border-top:1pt none #D9D9D9;line-height:100%;font-family:Calibri;font-size:12pt;;"> e.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">If applicable, the nature of the regulatory environment, for example, banking, insurance, or public utilities.&#x201D; </font></p></td></tr></table></div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">In our </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">prior response</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> letter to the Staff dated February 22, 2012</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> &nbsp;w</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">e have previously provided to the Staff</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">a summary of the ES and ITS operating segments</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">. In our public letter to the Staff dated March 7, 2013, we provided </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">a &nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">summary </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">of the EPS </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">operating segment </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">components that have </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">become part of </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">our ES and ITS operating segments. </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Both our ES and ITS operating segments provide products used worldwide in electric power generation and distribution systems and to control engines and turbines in industrial, mobile and marine applications. Following the elimination of our EPS operating segment</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font>
		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">5</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;;font-size: 12pt"><font style="display: inline;font-family:Times New Roman;font-size:12pt;">our ES operating segment generally supports reciprocating engine markets </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">as well as</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> electrical power generation and distribution markets. Our ITS operating segment generally supports industrial turbine and compressor markets as well as renewable power markets.</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> &nbsp; &nbsp;</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;text-decoration:underline;">Quantitative evaluation</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;text-decoration:underline;"> of similar economic characteristics</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> - In our quantitative evaluation of the similar economic characteristics between the ES and ITS operating segments</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> as of September 30, 2013,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> we considered</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> the historical results of the ES and ITS operating segments, </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the impact of the changes in ITS sales volumes and related impacts to ITS operating earnings during fiscal year 2013, as well as the implications for future period results triggered by the underlying economic causes of those sales declines. </font>
		</p>
		<p style="margin:6pt 0pt 6pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">As noted in our annual report on Form 10-K for the year ended September 30, 2013, during fiscal year 2013, the sales levels of our renewable power business dropped from $210.6 million in fiscal year 2012 to $117.1 million in fiscal year 2013. Sales </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">from </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">our renewable power business were approximately 13% of our total Energy reportable segment sales and 30% of ITS operating segment sales in fiscal year 2013, down from approximately 22% and 42%, respectively, in fiscal year 2012. The drop in sales from fiscal year 2012 to fiscal year 2013 had a significant negative impact on ITS operating segment earnings. Excluding the specific charges of $15.7 million related to the realignment of our renewable power business, our renewable power bus</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">iness earnings decreased from </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">an</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> operating </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">gain</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> of $13.9 million in fiscal year 2012 to a</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">n</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">operating loss</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> of $5.5 million in fiscal year 2013, primarily driven by the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">effects of </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">lower sales volumes.</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Our quantitative evaluation of the similar economic characteristics between the ES and ITS operating segments</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">, which includes consideration of the fiscal </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">year </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">2013 sales decrease of our renewable power business and the associated impact on segment earnings,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">is attached as Exhibit A.</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Based on our quantitative evaluation, we concluded that the ES and ITS operating segments have similar economic characteristics.</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;text-decoration:underline;">Qualitative analysis</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> &#x2013; In our </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">prior response </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">letters to the Staff dated February 22, 2012 and March 21, 2012, we have previously provided to the Staff, as of September 30, 2011, a summary of our qualitative analysis of the similarities between our ES, ITS and prior EPS operating segments. Except for the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">elimination </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">of the EPS operating segment, there have been no significant changes to our ES and ITS operating segments that would impact our conclusions relative to the five qualitative aggregation criteria areas listed in FASB ASC paragraph 280-10-50-11. Specifically, we do not believe there have been any significant changes to </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">(a</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">) &nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the nature of the products and services</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">(</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">b</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">) &nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the nature of the production processes</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">(</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">c</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">) &nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the type or class of customer for their products and services</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">(d</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">) &nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the methods used to distribute their products or provide their services</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> or </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">(e</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">) &nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the nature of the regulatory environment. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Further</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">elimination of the EPS operating segment</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">did not change our overall evaluation of the similarities between the ES and ITS </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">and prior EPS </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">operating segments, as previousl</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">y communicated to the Staff. In addition,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> we believe the fact that two components of the EPS operating segment </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">became part of</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> the ES operating segment and</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font>
		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">6</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;;font-size: 12pt"><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the other</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> two components </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">became part of</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> the ITS operating segment demonstrate</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">s</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> how the ES and ITS operating segments continue to be </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">economically similar </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">from a qualitative standpoint. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">We also considered whether the realignment of our renewable power business</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">, which is a component of our ITS operating segment,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">impacted our conclusion that the ES and ITS operating segments should be aggregated into our Energy reportable segment. We concluded that the realignment of our renewable power business had no impact on our conclusion that our ES and ITS operating segments were similar. Specifically, we considered the following:</font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-family:Times New Roman;border-bottom:1pt none #D9D9D9;line-height:100%;font-size:12pt;;"> a.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The nature of the products and services &#x2013; We concluded that </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">realignment of our renewable power business internal cost structure</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> and re-evaluation of certain markets </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">did not impact the overall similarities between the ES and ITS products and services. This conclusion is consistent with the fact that the renewable power business</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> realignment did not substantially impact</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> mix of</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> products and services</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> provided by the business prior to the r</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">e</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">alignment.</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-family:Times New Roman;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-size:12pt;;"> b.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The nature of the production processes &#x2013; We concluded that </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the realignment of our renewable power business internal cost structure and re-evaluation of certain markets</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">did not impact the overall similarities between the ES and ITS production processes. This conclusion is consistent with the fact that the renewable power business </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">realignment did not substantially impact</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">mix of </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">products and services </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">provided by the business prior to the realignment.</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-family:Times New Roman;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-size:12pt;;"> c.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The type or class of customer for their products and services &#x2013; We concluded that the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">realignment of our renewable power business </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">internal cost structure and re-evaluation </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">of certain markets</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">did not impact the overall similarity</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> in the type or class of customers</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">. Both ES and ITS will continue to sell their products and services to similar customers globally.&nbsp; </font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-family:Times New Roman;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-size:12pt;;"> d.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">The methods used to distribute their products or provide their services &#x2013; We concluded that </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the realignment of our renewable power business internal cost structure and re-evaluation of certain markets</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">did not impact the overall similarity</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> in distribution methods</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">. Both ES and ITS will continue to sell their products and services to similar customers globally, using similar distribution methods.&nbsp; </font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:72pt;"><p style="width:72pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-family:Times New Roman;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-size:12pt;;"> e.</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">If applicable, the nature of the regulatory environment, for example, banking, insurance, or public utilities &#x2013; We concluded that </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the realignment of our renewable power business internal cost structure and re-evaluation of certain markets</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">did not impact the overall similarity</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> in the nature of the regulatory environment</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">. Both ES and ITS will continue to sell their products and services to similar customers globally, subject to similar regulatory oversight.&nbsp; </font></p></td></tr></table></div>
		<p style="margin:6pt 0pt 6pt 90pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:6pt 0pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">

		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">7</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:6pt 0pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;;font-size: 12pt"><font style="display: inline;font-size:12pt;text-decoration:underline;">-</font><font style="display: inline;font-size:12pt;text-decoration:underline;"> Item 11.&nbsp;&nbsp;Executive Compensation, page 113</font>
		</p>
		<p style="margin:6pt 0pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-size:12pt;text-decoration:underline;">Compensation Discussion and Analysis, page 113</font>
		</p>
		<p style="margin:0pt;text-indent:36pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-style:italic;">3.&nbsp;&nbsp;Please </font><font style="display: inline;font-style:italic;">tell us how you believe that your Compensation Discussion and Analysis is incorporated into this Form 10-K. Also, please show us how your disclosure is consistent with response 3 in your letter to us dated July 12, 2011, including how investors can tell the extent to which compensation deviated from the disclosed 50th percentile. From your current disclosure, it appears that you have concluded that compensation up to the 75th percentile is not a material deviation; if so, please provide us the basis for your conclusion and include in your response the extent to which compensation elements deviated from the 50th percentile.</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 18pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">Response:</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">We acknowledge the Staff&#x2019;s comment regarding the incorporation of our fiscal year 2013 Compensation Discussion and Analysis into</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> our Annual Report on</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> Form 10-K</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> for the fiscal year ended September 30, 2013</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">. While we correctly incorporated the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Compensation Committee Report on Compensation Discussion and Analysis</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> and </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Executive Compensation</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> sections, </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">including</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> each of the executive officer compensation tables required by Item 402 of Regulation S-K, we inadvertently </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">did not</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> specify that we are also incorporating the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Compensation Discussion and Analysis</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> from our proxy statement filed on December 13, 2013 (our &#x201C;2013 Proxy Statement&#x201D;).</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> We will include a clear reference to the &#x201C;Compensation Discussion and Analysis&#x201D; in our Annual Report on Form 10-K for the fiscal year ending September 30, 2014. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">In response to the Staff&#x2019;s comment regarding our Compensation </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Discussion</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> and Analysis disclosure,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> as more fully described on page 31 of our 2013 Proxy Statement under the headings &#x201C;Competitive</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> Comparisons&#x201D; and &#x201C;Compensation Decisions Compared to Market Data,&#x201D;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">we</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> note that while we look at 50th percentile statistics when analyzing external market data in making compensation decisions for our </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Named Executive Officers (&#x201C;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">NEO</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">s</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&#x201D;)</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">, we do not target the 50th percentile or any percentile as a specific objective. Rather, our compensation decisions are made based on many additional factors, including </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">nature and scope of </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">each</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> NEO&#x2019;s role, and the NEO&#x2019;s performance, knowledge, skills, abilities, and potential. Accordingly, </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">total </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">compensation opportunity for an NEO may be at, above, or below </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">50th percentile. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">As Woodward has experienced continued growth, and in anticipation of significant further growth, we have continued to revisit our compensation philosophy and strategy, taking into consideration the competition and the corresponding need to attract and retain executive management. The Compensation Committee of Woodward&#x2019;s Board of Directors (the &#x201C;Compensation Committee&#x201D;) engaged in a series of discussions with our compensation consultants over the past two years. While we had previously placed significant focus on the 50th percentile, we determined as a result of these discussions that a wider range &#x2013; of up to the 75th percentile &#x2013; is more appropriate for us to achieve our attraction and retention goals, recognizing that targeting median data is not always the most effective approach. Therefore, although we do not specifically target the 75th percentile as a default, where an NEO has a high level of knowledge, skills and abilities, Woodward deems </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">total </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">compensation of up to </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">75th percentile to be warranted. This is consistent with the philosophy described in our 2013 </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">P</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">roxy </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">S</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">tatement.&nbsp;&nbsp;(See</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">page</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> 31</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> of </font>
		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">8</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;;font-size: 12pt"><font style="display: inline;font-family:Times New Roman;font-size:12pt;">our 2013 </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">P</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">roxy </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">S</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">tatement</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">, &nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">under </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Compensation Discussion and Analysis</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">, Competitive Comparisons.</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">) &nbsp;</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">While Woodward does not specifically target any single percentile level as a specific </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">total </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">compensation objective, our internal compensation decision-making philosophy is premised on the notion that we are generally willing to compensate our NEOs in an amount that does not vary materially from the peer group, absent any unusual circumstances. Thus, in determining that </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">total </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">NEO compensation of up to the 75th percentile is appropriate, we have concluded &#x2013; in line with our compensation philosophy &#x2013; that such amount is not a material deviation from the benchmarking data.&nbsp; </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">For purposes of disclosure in our 2013 </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">P</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">roxy </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">S</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">tatement, we applied the same materiality standard as we do for our internal decision-making purposes, namely, that </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">total </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">compensation of up to the 75th percentile is not a material deviation from compensation for our NEOs&#x2019; peers. Additionally, Woodward generally believes that if at least one-half of the peer group is within the same compensation range as our NEOs, then we are situated within the majority of our peers, and mathematically, a range of 25th to 75th percentile accomplishes that. Therefore, Woodward believes that any point within that range is not a material deviation from the peer group. As Woodward&#x2019;s compensation practices and philosophy continue to evolve through discussions with our compensation consultants and otherwise, we will continue to evaluate our materiality threshold.&nbsp;&nbsp;In future filings, we will continue to disclose and discuss any material deviation from our compensation philosophy. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">W</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">e</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> acknowledge</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> that </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">i</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">n our pri</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">or response letter to the Staff</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> dated July 12, 2011 </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">and in our 2011 proxy statement</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> we applied</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> at the time</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> a materiality threshold compensation level of greater than 10% (not percentile) above the 50th percentile. This previous approach, however, is not in line with our current pay decision making philosophy, as we target compensation in varying amounts for each NEO based on multiple factors as discussed above, rather than any focus on the deviation (either by dollar or by percentage) from the 50th percentile. </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">In light of our materiality determination, we believe that Woodward&#x2019;s 2013 </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">P</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">roxy </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">S</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">tatement disclosure is generally consistent with the Staff&#x2019;s June 28, 2011 letter and our July 12, 2011 response thereto. </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">W</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">e believe </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">the</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> description of our compensation philosophy and decision-making process is in line with what we stated we would include in future filings. With respect to the Staff&#x2019;s request that Woodward revise future filings to disclose where the actual amounts of compensation paid fell in relation to the targeted amount, we provided in our subsequent proxy statement filings specific information on actual amounts paid to each NEO for both the Management Incentive Plan (&#x201C;MIP&#x201D;) and the Long-Term Incentive Plan (&#x201C;LTIP&#x201D;) relative to targeted amounts.&nbsp;&nbsp;(See</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> page 33 of our 2013 </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Proxy S</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">tatement, under</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;"> Compensation Discussion and Analysis, Annual Short-Term Incentive Compensation, </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">and page 35 of our 2013 </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">P</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">roxy </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">S</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">tatement under</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Compensation Discussion and Analysis</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">,</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Long-Term Management Incentive Compensation.)</font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">In response to the Staff&#x2019;s request to include in this response the extent to which compensation elements deviated from the 50th percentile, the table attached in </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Exhibit </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">B</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font>
		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">9</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;;font-size: 12pt"><font style="display: inline;font-family:Times New Roman;font-size:12pt;">reflects such information for each of our NEOs for fiscal year 2013. While we have provided this information in accordance with the Staff&#x2019;s request, please note that Woodward did not specifically target the 50th percentile, or any percentile as a specific objective, in </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">fiscal year </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">2013.&nbsp; </font>
		</p>
		<p style="margin:6pt 0pt 10pt 36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 10pt;text-align:center;font-family:Calibri;line-height:115%;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">* * * * *</font>
		</p>
		<p style="margin:0pt 0pt 12pt 36pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<a name="_DV_M191"></a><font style="display: inline;">In connection with its response to the Staff&#x2019;s comment letter, Woodward acknowledges that:</font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"><p style="width:36pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-family:Symbol;border-bottom:1pt none #D9D9D9;line-height:100%;font-size:12pt;;"> &#xB7;</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;">Woodward is responsible for the adequacy and accuracy of the disclosure in the filing;</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"><p style="width:36pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-family:Symbol;border-top:1pt none #D9D9D9;border-bottom:1pt none #D9D9D9;line-height:100%;font-size:12pt;;"> &#xB7;</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;">Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing; and</font></p></td></tr></table></div>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"><p style="width:36pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt; display: inline;">
			<p style="border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
				<font style="margin:6pt 0pt;font-family:Symbol;border-top:1pt none #D9D9D9;line-height:100%;font-size:12pt;;"> &#xB7;</font>
			</p>
		</td><td style="width:0pt;"><p style="width:0pt;width:0pt;font-size:0pt;"></p></td><td align="left" valign="top">
			<p style="border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt;margin:6pt 0pt;">
			<font style="display: inline;">Woodward may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.</font></p></td></tr></table></div>
		<p style="margin:0pt 0pt 12pt 36pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-size:12pt;">Please call me at (970) 498-3112 should you wish to discuss the matters addressed above or other issues relating to the subject Form 10-K. Thank you for your attention to this matter.</font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">Very truly yours,</font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<div style="width:100%"><table cellpadding="0" cellspacing="0" style="border-collapse:collapse;margin-left:234pt;line-height:100%;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;">
			<tr>
				<td valign="top" style="width:478.80pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt solid #000000 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">/s/ Robert F. Weber, Jr.</font></p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="width:478.80pt;border-top:1pt solid #000000 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">Robert F. Weber, Jr. </font></p>
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;font-style:italic;">Vice Chairman, Chief Financial Officer and Treasurer</font></p>
				</td>
			</tr>
		</table></div>
		<p style="margin:0pt 0pt 12pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<a name="_DV_M193"></a><font style="display: inline;font-size:12pt;">&nbsp;</font>
		</p>
		<div style="width:100%"><table cellpadding="0" cellspacing="0" style="border-collapse:collapse;margin-left:37.05pt;line-height:100%;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;">
			<tr>
				<td valign="top" style="width:35.85pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:1.00pt;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:normal;font-family:Calibri;height:1.00pt;overflow:hidden;font-size:0pt;">
						<font style="display: inline;font-size:1pt;">&nbsp;</font></p>
				</td>
				<td valign="top" style="width:405.90pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;height:1.00pt;padding:0pt 6.5pt">
					<p style="margin:0pt;font-family:Calibri;line-height:115%;height:1.00pt;overflow:hidden;font-size:0pt;">
						&nbsp;</p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="width:35.85pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">cc:</font></p>
				</td>
				<td valign="top" style="width:405.90pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">A. Christopher Fawzy</font></p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="width:35.85pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">&nbsp;</font></p>
				</td>
				<td valign="top" style="width:405.90pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;font-style:italic;">Woodward, Inc.</font></p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="width:35.85pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">&nbsp;</font></p>
				</td>
				<td valign="top" style="width:405.90pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						&nbsp;</p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="width:35.85pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">&nbsp;</font></p>
				</td>
				<td valign="top" style="width:405.90pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">Philip S. Stamatakos</font></p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="width:35.85pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">&nbsp;</font></p>
				</td>
				<td valign="top" style="width:405.90pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">Joel T. May</font></p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="width:35.85pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">&nbsp;</font></p>
				</td>
				<td valign="top" style="width:405.90pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;font-style:italic;">Jones Day</font></p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="width:35.85pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">&nbsp;</font></p>
				</td>
				<td valign="top" style="width:405.90pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						&nbsp;</p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="width:35.85pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">&nbsp;</font></p>
				</td>
				<td valign="top" style="width:405.90pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">Scott Ward</font></p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="width:35.85pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;">&nbsp;</font></p>
				</td>
				<td valign="top" style="width:405.90pt;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;font-style:italic;">Deloitte &amp; Touche LLP</font></p>
				</td>
			</tr>
		</table></div>
		<p style="margin:0pt;line-height:normal;font-family:Calibri;font-size: 11pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-style:italic;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 10pt;font-family:Calibri;line-height:115%;font-size: 11pt">

		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">10</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:0pt 0pt 10pt;font-family:Calibri;line-height:115%;;font-size: 11pt"><font style="display: inline;font-style:italic;"></font>
		</p></div><div style="margin-left:72pt;margin-right:72pt;">
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;text-align:right;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">Exhibit A</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">***</font><font style="display: inline;font-size:6pt;top:-4.8pt;position:relative;line-height:100%">1</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<div style="width:100%"><table cellpadding="0" cellspacing="0" style="border-collapse:collapse;margin-left:5.4pt;line-height:100%;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;">
			<tr>
				<td valign="top" style="border-right:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;width:103.50pt;height:1.00pt;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:normal;font-family:Calibri;height:1.00pt;overflow:hidden;font-size:0pt;">
						<font style="display: inline;font-size:1pt;">&nbsp;</font></p>
				</td>
				<td valign="top" style="border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;width:369.90pt;height:1.00pt;padding:0pt 6.5pt">
					<p style="margin:0pt;font-family:Calibri;line-height:115%;height:1.00pt;overflow:hidden;font-size:0pt;">
						&nbsp;</p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="border-right:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;width:103.50pt;border-bottom:1pt solid #000000 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;font-weight:bold;">&nbsp;</font></p>
				</td>
				<td valign="top" style="border-left:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;width:369.90pt;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						&nbsp;</p>
				</td>
			</tr>
		</table></div>
		<p style="margin:0pt;text-indent: -1.05pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-size:6pt;top:-4.8pt;position:relative;line-height:100%">1</font><font style="display: inline;">&nbsp;</font><font style="display: inline;">Exhibit A consists of six pages redacted and filed separately with the Commission pursuant to Woodward, Inc.&#x2019;s request for confidential treatment.</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 36pt;text-indent: -36pt;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">*** </font><font style="display: inline;font-family:Times New Roman;font-size:12pt;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 21.6pt 0pt 0pt;"></font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">INDICATES CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION (REF. WWD0001-WWD0006)</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 10pt;font-family:Calibri;line-height:115%;font-size: 11pt">

		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">A-1</font>

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr><p style="page-break-after:always">&nbsp;</p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-weight:bold;font-size:12pt;">CONFIDENTIAL TREATMENT REQUESTED BY WOODWARD, INC.</font>

		</p>

		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 11pt">

			&nbsp;

		</p>

</div>
		<p style="margin:0pt 0pt 10pt;font-family:Calibri;line-height:115%;;font-size: 11pt"><font style="display: inline;font-style:italic;"></font>
		</p></div><div style="margin-left:72pt;margin-right:72pt;">
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;text-align:right;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">Exhibit </font><font style="display: inline;font-weight:bold;">B</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">***</font><font style="display: inline;font-size:6pt;top:-4.8pt;position:relative;line-height:100%">2</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-weight:bold;">&nbsp;</font>
		</p>
		<div style="width:100%"><table cellpadding="0" cellspacing="0" style="border-collapse:collapse;margin-left:5.4pt;line-height:100%;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;">
			<tr>
				<td valign="top" style="border-right:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;width:103.50pt;height:1.00pt;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:normal;font-family:Calibri;height:1.00pt;overflow:hidden;font-size:0pt;">
						<font style="display: inline;font-size:1pt;">&nbsp;</font></p>
				</td>
				<td valign="top" style="border-left:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;width:369.90pt;height:1.00pt;padding:0pt 6.5pt">
					<p style="margin:0pt;font-family:Calibri;line-height:115%;height:1.00pt;overflow:hidden;font-size:0pt;">
						&nbsp;</p>
				</td>
			</tr>
			<tr>
				<td valign="top" style="border-right:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;border-left:1pt none #D9D9D9 ;width:103.50pt;border-bottom:1pt solid #000000 ;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						<font style="display: inline;font-weight:bold;">&nbsp;</font></p>
				</td>
				<td valign="top" style="border-left:1pt none #D9D9D9 ;border-top:1pt none #D9D9D9 ;border-right:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;width:369.90pt;padding:0pt 6.5pt">
					<p style="margin:0pt;line-height:100%;font-family:Times New Roman;font-size: 12pt">
						&nbsp;</p>
				</td>
			</tr>
		</table></div>
		<p style="margin:0pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 10pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;font-size:6pt;top:-4pt;position:relative;line-height:100%">2</font><font style="display: inline;">&nbsp;</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">Exhibit B consists of one page redacted and filed separately with the Commission pursuant to Woodward, Inc.&#x2019;s request for confidential treatment.</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 36pt;text-indent: -36pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Calibri;font-size: 12pt">
			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">***</font><font style="display: inline;font-family:Times New Roman;font-size:12pt;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 25.2pt 0pt 0pt;"></font><font style="display: inline;font-family:Times New Roman;font-size:12pt;">INDICATES CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION (REF. WWD0007)</font>
		</p>
		<p style="margin:0pt;text-indent: -1.05pt;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 37.05pt;text-indent: -1.05pt;text-align:right;border-top:1pt none #D9D9D9 ;border-bottom:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-style:italic;">&nbsp;</font>
		</p>
		<p style="margin:0pt;border-top:1pt none #D9D9D9 ;line-height:100%;font-family:Times New Roman;font-size: 12pt">
			<font style="display: inline;font-style:italic;">&nbsp;</font>
		</p>
		<p><font size="1"> </font></p><div style="width:100%">

		<p style="margin:0pt;text-align:center;line-height:100%;font-family:Calibri;font-size: 12pt">

			<font style="display: inline;font-family:Times New Roman;font-size:12pt;">B-1</font>

		</p>

</div><hr size="3" style="color:#999999" width="100%" align="center"></hr>
	</div></body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
