XML 68 R54.htm IDEA: XBRL DOCUMENT v3.20.2

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

Income taxes consisted of the following:

		Year Ended September 30,
		2020				2019				2018
Current:
Federal		$	15,976			$	40,173			$	39,979
State			1,383				2,402				3,697
Foreign			22,588				34,660				25,968
Deferred:
Federal			10,784				(2,015	)			(10,519	)
State			(547	)			(2,948	)			(3,784	)
Foreign			(8,698	)			(11,262	)			(16,141	)
		$	41,486			$	61,010			$	39,200

Earnings Before Income Taxes by Geographical Area

Earnings before income taxes by geographical area consisted of the following:

		Year Ended September 30,
		2020				2019				2018
United States		$	180,753			$	211,267			$	181,671
Other countries			101,128				109,345				37,907
		$	281,881			$	320,612			$	219,578

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred income taxes presented in the Consolidated Balance Sheets are related to the following:

		At September 30,
		2020				2019
Deferred tax assets:
Defined benefit plans, other postretirement		$	6,238			$	6,535
Foreign net operating loss carryforwards			6,106				6,836
Inventory			53,867				51,740
Stock-based and other compensation			35,919				45,839
Defined benefit plans, pension			5,624				11,399
Deferred revenue net of unbilled receivables			39,990				32,310
Other reserves			10,119				11,571
Tax credits and incentives			14,340				13,580
Lease obligations			5,764				—
Other			9,223				5,611
Valuation allowance			(1,833	)			(3,638	)
Total deferred tax assets, net of valuation allowance			185,357				181,783
Deferred tax liabilities:
Goodwill and intangibles - net			(218,900	)			(212,926	)
Property, plant and equipment			(107,862	)			(97,469	)
Right of use assets			(4,837	)			—
Other			(2,673	)			(4,589	)
Total deferred tax liabilities			(334,272	)			(314,984	)
Net deferred tax liabilities		$	(148,915	)		$	(133,201	)

Reconciliation of U.S. Statutory Tax Rate to Effective Tax Rate

The following is a reconciliation of the U.S. Federal statutory tax 21% in the fiscal year ended September 30, 2020, 21.0% in fiscal year ended September 30, 2019 and 24.5% in the fiscal year ended September 30, 2018 to Woodward’s effective income tax rate:

		Year Ending September 30,
		2020				2019				2018
Percent of pretax earnings
Statutory tax rate			21.0	%			21.0	%			24.5	%
State income taxes, net of federal tax benefit			0.3				(0.1	)			(0.5	)
Taxes on international activities			(2.1	)			0.2				(1.8	)
Research credit			(3.6	)			(3.3	)			(4.8	)
Net excess income tax benefit from stock-based compensation			(2.8	)			(3.5	)			(1.4	)
Domestic production activities deduction			—			–					(1.6	)
Adjustments of prior period tax items			1.0				0.9				(5.0	)
Effect of U.S. federal corporate rate reduction on net beginning U.S. deferred tax liability			—			–					(5.0	)
Transition Tax			—				3.3				6.2
Increased deferred tax liability associated with anticipated repatriation taxes			—			–					3.7
Effect of U.S. federal corporate rate reduction on net current year U.S. deferred tax activity			—			–					2.0
Other items, net			0.9				0.5				1.6
Effective tax rate			14.7	%			19.0	%			17.9	%

Reconciliation of the Beginning and Ending Amounts of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows:

		Year Ending September 30,
		2020				2019				2018
Beginning balance		$	10,305			$	8,364			$	20,132
Additions to current year tax positions			1,890				1,930				2,675
Reductions to prior year tax positions			(2,415	)		–					(14,458	)
Additions to prior year tax positions			71				11				15
Lapse of applicable statute of limitations			—			–				–
Ending balance		$	9,851			$	10,305			$	8,364

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI http://asc.fasb.org/extlink&oid=121610041&loc=d3e36027-109320

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration