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Intangible Assets, Net | 12 Months Ended
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Sep. 30, 2022
Intangible Assets Net Excluding Goodwill [Abstract] |
Intangible Assets, Net | Note 14. Intangible assets, net
|  | September 30, 2022 |  |  | September 30, 2021 |
|  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Intangible assets with finite lives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships and contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace |  | $ | 281,683 |  |  | $ | (223,565 | ) |  | $ | 58,118 |  |  | $ | 281,683 |  |  | $ | (210,380 | ) |  | $ | 71,303 |
Industrial |  |  | 352,917 |  |  |  | (66,812 | ) |  |  | 286,105 |  |  |  | 404,179 |  |  |  | (56,515 | ) |  |  | 347,664 |
Total |  | $ | 634,600 |  |  | $ | (290,377 | ) |  | $ | 344,223 |  |  | $ | 685,862 |  |  | $ | (266,895 | ) |  | $ | 418,967 |
Intellectual property: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Industrial |  |  | 12,361 |  |  |  | (12,361 | ) |  |  | — |  |  |  | 15,806 |  |  |  | (15,806 | ) |  |  | — |
Total |  | $ | 12,361 |  |  | $ | (12,361 | ) |  | $ | — |  |  | $ | 15,806 |  |  | $ | (15,806 | ) |  | $ | — |
Process technology: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace |  | $ | 76,370 |  |  | $ | (69,471 | ) |  | $ | 6,899 |  |  | $ | 76,370 |  |  | $ | (67,177 | ) |  | $ | 9,193 |
Industrial |  |  | 78,524 |  |  |  | (27,464 | ) |  |  | 51,060 |  |  |  | 90,008 |  |  |  | (26,124 | ) |  |  | 63,884 |
Total |  | $ | 154,894 |  |  | $ | (96,935 | ) |  | $ | 57,959 |  |  | $ | 166,378 |  |  | $ | (93,301 | ) |  | $ | 73,077 |
Other intangibles: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Industrial |  |  | 1,560 |  |  |  | — |  |  |  | 1,560 |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 1,560 |  |  | $ | — |  |  | $ | 1,560 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Intangible asset with indefinite life: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade name: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Industrial |  |  | 56,838 |  |  |  | — |  |  |  | 56,838 |  |  |  | 67,245 |  |  |  | — |  |  |  | 67,245 |
Total |  | $ | 56,838 |  |  | $ | — |  |  | $ | 56,838 |  |  | $ | 67,245 |  |  | $ | — |  |  | $ | 67,245 |
Total intangibles: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace |  | $ | 358,053 |  |  | $ | (293,036 | ) |  | $ | 65,017 |  |  | $ | 358,053 |  |  | $ | (277,557 | ) |  | $ | 80,496 |
Industrial |  |  | 502,200 |  |  |  | (106,637 | ) |  |  | 395,563 |  |  |  | 577,238 |  |  |  | (98,445 | ) |  |  | 478,793 |
Consolidated Total |  | $ | 860,253 |  |  | $ | (399,673 | ) |  | $ | 460,580 |  |  | $ | 935,291 |  |  | $ | (376,002 | ) |  | $ | 559,289 |
Indefinite lived intangible assets The Woodward L’Orange trade name intangible asset is tested for impairment on an annual basis and more often if an event occurs or circumstances change that indicate the fair value of the Woodward L’Orange intangible asset may be below its carrying amount. The impairment test consists of comparing the fair value of the Woodward L’Orange trade name intangible asset, determined using discounted cash flows based on the relief from royalty method under the income approach, with its carrying amount. If the carrying amount of the Woodward L’Orange trade name intangible asset exceeds its fair value, an impairment loss would be recognized to reduce the carrying amount to its fair value. Woodward has not recognized any impairment charges for this asset. During the fourth quarter, Woodward completed its annual impairment test of the Woodward L’Orange trade name intangible asset as of July 31, 2022 for the fiscal year ended September 30, 2022. The fair value of the Woodward L’Orange trade name intangible assets was determined using discounted cash flows based on the relief from royalty method under the income approach. This method represents a Level 3 input (based upon a fair value hierarchy established by U.S. GAAP) and incorporates various estimates and assumptions, the most significant being projected revenue growth rates, royalty rates, future tax rates and the present value, based on an estimated weighted-average cost of capital (or the discount rate) and terminal growth rate, of the forecasted cash flow. Management projects revenue growth rates and cash flows based on Woodward L’Orange’s current operational results, expected performance and operational strategies over a five year period. These projections are adjusted to reflect current economic conditions and demand for certain products, and require considerable management judgment. The forecasted cash flow used in the July 31, 2022 impairment test was discounted using weighted-average cost of capital assumption of 9.70%. The terminal value of the forecasted cash flow was calculated using the Gordon Growth Model and assumed an annual compound growth rate after five years of 3.95%. These inputs, which are unobservable in the market, represent management’s best estimate of what market participants would use in determining the present value of the Company’s forecasted cash flows. Changes in these estimates and assumptions can have a significant impact on the fair value of the forecasted cash flow. The results of impairment test performed as of July 31, 2022 indicated the estimated fair value of the Woodward L’Orange trade name intangible asset was in excess of its carrying value, and accordingly, no impairment existed. Finite-lived intangible assets During the first quarter of fiscal year 2020, Woodward determined that the approved plan to divest of the disposal group represented a triggering event requiring the long-lived assets attributable to the disposal group be assessed for impairment. Given the facts and circumstances at that time, Woodward determined that the remaining value of the intangible assets of the disposal group was not recoverable and a $200 non-cash impairment charge was recorded for the fiscal year ended September 30, 2020. Woodward recorded amortization expense associated with intangibles of the following:
|  | Year Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Amortization expense |  | $ | 37,609 |  |  | $ | 41,893 |  |  | $ | 39,458 |
Future amortization expense associated with intangibles is expected to be:
Year Ending September 30: |  |  |  |
2023 |  | $ | 35,885 |
2024 |  |  | 32,014 |
2025 |  |  | 26,852 |
2026 |  |  | 26,816 |
2027 |  |  | 26,750 |
Thereafter |  |  | 255,425 |
|  | $ | 403,742 |

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -URI https://asc.fasb.org/subtopic&trid=2144471 + Details
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