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Stockholders' Equity | 6 Months Ended
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Mar. 31, 2017
Stockholders' Equity and Stock-Based Compensation [Abstract] |
Stockholders' Equity | Note 19. Stockholders’ equity Stock repurchase program In the first quarter of fiscal year 2017, Woodward’s Board of Directors terminated the Company’s prior stock repurchase program (the “Prior Repurchase Program”) and replaced it with a new program for the repurchase of up to $500,000 of Woodward’s outstanding shares of common stock on the open market or in privately negotiated transactions over a three-year period that will end in 2019 (the “2016 Authorization”). Under the 2016 Authorization, i n the first half of fiscal year 2017, Wo odward purchased 886 shares of its common stock for $61,229, of which 350 shares were purchased pursuant to a 10b5-1 plan and 536 shares were purchased pursuant to a 10b-18 plan. Under the Prior Repurchase Program, i n the first quarter of fiscal year 2016, Woodward executed a 10b5-1 plan to repurchase up to $125,000 of its common stock for a period that ended on April 20, 2016. During the first half of fiscal year 2016, Woodward purchased 2,523 shares of its common stock for $119,119. Stock-based compensation Provisions governing outstanding stock option awards are included in the 2006 Omnibus Incentive Plan (the “2006 Plan”) and the 2002 Stock Option Plan (the “2002 Plan”). The 2002 Plan provided that no further grants would be made after December 31, 2006. The 2006 Plan, which was approved by Woodward’s stockholders and became effective January 25, 2006, expired in fiscal year 2016. No further grants will be made under either the 2002 Plan or the 2006 Plan. Woodward’s stockholders approved a successor plan to the 2006 Plan (the “2017 Plan”) at the January 25, 2017 Annual Stockholder Meeting. As of September 14, 2016, the effective date of the 2017 Plan, Woodward’s Board of Directors delegated authority to administer the 2017 Plan to the compensation committee of the board (the “Committee”), including, but not limited to, the power to determine the recipients of awards and the terms of those awards. The Committee approved issuance of options under the 2017 Plan, with an award date of October 3, 2016 conditional and subject to approval of the 2017 Plan by the stockholders. The stock options conditionally awarded under the 2017 Plan were not granted or outstanding for accounting purposes prior to stockholder approval of the 2017 Plan, and as such no stock-based compensation expense was recognized on these stock options during the three-months ended December 31, 2016. Stock-based compensation expense recognized on these stock options for the three-months ended March 31, 2017 includes recognition of the elapsed service period of these stock options from October 3, 2016 through March 31, 2017. Stock options Woodward has reserved a total of 2,000 shares of Woodward’s common stock for issuance under the 2017 Plan, which was approved by Woodward’s stockholders in January 2017. To date equity awards under the 2017 Plan have consisted of grants of stock options to Woodward’s employees and directors. Woodward believes that these stock options align the interests of its employees and directors with the interests of its stockholders. Stock option awards are granted with an exercise price equal to the market price of Woodward’s stock at the date the grants are awarded, a ten-year term, and generally a four-year vesting schedule at a rate of 25% per year. The date of grant for stock options is the date when the grants become unconditionally awarded and an employer and grantee reach a mutual understanding of the key terms and conditions of the grant. Stock options awarded as of October 3, 2016 were conditional and subject to the approval of the 2017 Plan by the stockholders. As such, those awards have a date of grant for accounting purposes of January 25, 2017, the date the 2017 Plan was approved by stockholders. The fair value of options granted is estimated as of that same date using the Black-Scholes-Merton option-valuation model using the assumptions in the following table. Woodward calculates the expected term, which represents the average period of time that stock options granted are expected to be outstanding, based upon historical experience of plan participants. Expected volatility is based on historical volatility using daily stock price observations. The estimated dividend yield is based upon Woodward’s historical dividend practice and the market value of its common stock. The risk-free rate is based on the U.S. treasury yield curve, for periods within the contractual life of the stock option, at the time of grant. ﻿ ﻿
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﻿ | Three-Months Ended |  | Six-Months Ended
﻿ | March 31, |  | March 31,
﻿ | 2017 |  | 2016 |  | 2017 |  | 2016
﻿Weighted-average exercise price per share | $ | 62.64 |  |  |  | n/a |  |  | $ | 62.64 |  |  | $ | 40.26 |
﻿Weighted-average grant date market value of Woodward stock | $ | 69.45 |  |  |  | n/a |  |  | $ | 69.45 |  |  | $ | 40.26 |
﻿Expected term (years) |  | 6.0 | - | 8.7 |  |  |  | n/a |  |  |  | 6.0 | - | 8.7 |  |  |  | 6.3 | - | 8.7 |
﻿Estimated volatility |  | 31.5% | - | 33.7% |  |  |  | n/a |  |  |  | 31.5% | - | 33.7% |  |  |  | 34.5% | - | 35.1% |
﻿Estimated dividend yield |  | 0.7% |  |  |  | n/a |  |  |  | 0.7% |  |  |  | 1.0% |
﻿Risk-free interest rate |  | 2.2% | - | 2.5% |  |  |  | n/a |  |  |  | 2.2% | - | 2.5% |  |  |  | 1.7% | - | 2.0% |
﻿ ﻿ The following is a summary of the activity for stock option awards during the three and six-months ended March 3 1, 201 7: ﻿ ﻿
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﻿ |  | Three-Months Ended |  | Six-Months Ended
﻿ |  | March 31, 2017 |  | March 31, 2017
﻿ |  | Number of options |  | Weighted-Average Exercise Price per Share |  | Number of options |  | Weighted-Average Exercise Price per Share
﻿Options, beginning balance |  |  | 4,792 |  | $ | 35.35 |  |  | 4,944 |  | $ | 35.35
﻿Options granted |  |  | 780 |  |  | 62.64 |  |  | 780 |  |  | 62.64
﻿Options exercised |  |  | (236) |  |  | 33.21 |  |  | (375) |  |  | 33.81
﻿Options forfeited |  |  | (5) |  |  | 42.73 |  |  | (18) |  |  | 42.34
﻿Options, ending balance |  |  | 5,331 |  |  | 39.43 |  |  | 5,331 |  |  | 39.43
﻿ Changes in non-vested stock options during the three and six-months ended March 31, 201 7 were as follows: ﻿ ﻿
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﻿ |  | Three-Months Ended |  | Six-Months Ended
﻿ |  | March 31, 2017 |  | March 31, 2017
﻿ |  | Number of options |  | Weighted-Average Grant Date Fair Value per Share |  | Number of options |  | Weighted-Average Grant Date Fair Value per Share
﻿Options outstanding, beginning balance |  |  | 1,304 |  | $ | 14.70 |  |  | 2,075 |  | $ | 14.90
﻿Options granted |  |  | 780 |  |  | 25.05 |  |  | 780 |  |  | 25.05
﻿Options vested |  |  | (3) |  |  | 18.27 |  |  | (761) |  |  | 15.25
﻿Options forfeited |  |  | (5) |  |  | 14.77 |  |  | (18) |  |  | 14.56
﻿Options outstanding, ending balance |  |  | 2,076 |  |  | 18.58 |  |  | 2,076 |  |  | 18.58
﻿ Information about stock options that have vested, or are expected to vest, and are exercisable at March 31, 2017 was as follows: ﻿
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﻿ |  | Number |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Life in Years |  | Aggregate Intrinsic Value
﻿Options outstanding |  |  | 5,331 |  | $ | 39.43 |  |  | 6.4 |  | $ | 151,901
﻿Options vested and exercisable |  |  | 3,254 |  |  | 32.80 |  |  | 5.0 |  |  | 114,271
﻿Options vested and expected to vest |  |  | 5,224 |  |  | 39.18 |  |  | 6.3 |  |  | 150,155
﻿ Restricted Stock In the first quarter of fiscal year 2014, Woodward granted an award of 24 shares of restricted stock under the 2006 Plan to its Chief Executive Officer and President, Thomas A. Gendron. Subject to Mr. Gendron’s continued employment by the Company, 100% of these shares of restricted stock will vest following the end of the Company’s fiscal year 2017 if a specified cumulative earnings per share (“EPS”) target is met or exceeded for fiscal years 2014 through 2017. If this EPS target is not met for that period, all shares of restricted stock will be forfeited by Mr. Gendron. As of March 31, 2017, Woodward determined it is not probable that the restricted shares will vest. The shares of restricted stock were awarded to Mr. Gendron pursuant to a form restricted stock agreement approved by Woodward’s Compensation Committee of the Board of Directors. A summary of the activity for restricted stock awards in the three and six-months ended March 3 1, 201 7 follows: ﻿
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﻿ |  | Three-Months Ended |  | Six-Months Ended
﻿ |  | March 31, 2017 |  | March 31, 2017
﻿ |  |  | Number |  |  | Fair Value per Share |  |  | Number |  |  | Fair Value per Share
﻿Beginning balance |  |  | 24 |  | $ | 39.43 |  |  | 24 |  | $ | 39.43
﻿Shares granted |  |  | - |  |  | n/a |  |  | - |  |  | n/a
﻿Shares vested |  |  | - |  |  | n/a |  |  | - |  |  | n/a
﻿Shares forfeited |  |  | - |  |  | n/a |  |  | - |  |  | n/a
﻿Ending balance |  |  | 24 |  |  | 39.43 |  |  | 24 |  |  | 39.43
Stock-based compensation cost Woodward recognizes stock-based compensation expense on a straight-line basis over the requisite service period. Pursuant to form stock option agreements used by the Company, the requisite service period can be less than the four-year vesting period based on grantee’s retirement eligibility. As such, the recognition of stock-based compensation expense associated with some stock option grants can be accelerated to a period of less than four years, including immediate recognition of stock-based compensation on the date of grant. At March 31, 2017, there was approximately $12,622 of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, both stock options and restricted stock awards, granted under the 2006 Plan (for which no further grants will be made) and stock options granted under the 2017 Plan. The pre-vesting forfeiture rates for purposes of determining stock-based compensation cost recognized were estimated to be 0% for members of Woodward’s board of directors and 9% for all others. The remaining unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately 2.3 years.

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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + References No definition available. + Details
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- Definition Stockholders' Equity and Stock-Based Compensation + References No definition available. + Details
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