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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2024
Income Tax Disclosure [Abstract] |
Components of Income Tax Expense (Benefit) | Income taxes consisted of the following:
|  | Year Ended September 30, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 46,102 |  |  | $ | 41,195 |  |  | $ | 21,869 |
State |  |  | 4,841 |  |  |  | 2,641 |  |  |  | 2,310 |
Foreign |  |  | 74,663 |  |  |  | 39,719 |  |  |  | 27,577 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (18,888 | ) |  |  | (38,136 | ) |  |  | (13,216 | )
State |  |  | (7,341 | ) |  |  | (10,006 | ) |  |  | (8,623 | )
Foreign |  |  | (18,377 | ) |  |  | 7,987 |  |  |  | (1,717 | )
|  | $ | 81,000 |  |  | $ | 43,400 |  |  | $ | 28,200 |
Earnings Before Income Taxes by Geographical Area | Earnings before income taxes by geographical area consisted of the following:
|  | Year Ended September 30, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
United States |  | $ | 244,320 |  |  | $ | 122,389 |  |  | $ | 99,427 |
Other countries |  |  | 209,651 |  |  |  | 153,379 |  |  |  | 100,471 |
|  | $ | 453,971 |  |  | $ | 275,768 |  |  | $ | 199,898 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred income taxes presented in the Consolidated Balance Sheets are related to the following:
|  | September 30, 2024 |  |  | September 30, 2023 |
Deferred tax assets: |  |  |  |  |  |
Defined benefit plans, other postretirement |  | $ | 3,695 |  |  | $ | 3,769 |
Foreign net operating loss carryforwards |  |  | 6,547 |  |  |  | 3,748 |
Inventory |  |  | 77,013 |  |  |  | 68,034 |
Stock-based and other compensation |  |  | 48,360 |  |  |  | 51,099 |
Deferred revenue net of unbilled receivables |  |  | 43,400 |  |  |  | 46,283 |
Other reserves |  |  | 7,850 |  |  |  | 8,244 |
Tax credits and incentives |  |  | 30,886 |  |  |  | 28,319 |
Lease obligations |  |  | 6,851 |  |  |  | 6,103 |
Other |  |  | 4,622 |  |  |  | 4,476 |
Capitalized research and development costs |  |  | 63,080 |  |  |  | 37,328 |
Valuation allowance |  |  | (5,983 | ) |  |  | (3,827 | )
Total deferred tax assets, net of valuation allowance |  |  | 286,321 |  |  |  | 253,576 |
Deferred tax liabilities: |  |  |  |  |  |
Goodwill and intangibles - net |  |  | (198,012 | ) |  |  | (194,891 | )
Property, plant and equipment |  |  | (97,340 | ) |  |  | (99,547 | )
Right of use assets |  |  | (6,691 | ) |  |  | (5,948 | )
Defined benefit plans, pension |  |  | (13,133 | ) |  |  | (9,892 | )
Other |  |  | (8,612 | ) |  |  | (17,568 | )
Total deferred tax liabilities |  |  | (323,788 | ) |  |  | (327,846 | )
Net deferred tax liabilities |  | $ | (37,467 | ) |  | $ | (74,270 | )
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 years ended September 30, 2024, September 30, 2023, and September 30, 2022 to Woodward’s effective income tax rate:
|  | Year Ending September 30, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Percent of pretax earnings |  |  |  |  |  |  |  |  |
Statutory tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal tax benefit |  |  | (0.4 | ) |  |  | (1.6 | ) |  |  | (2.5 | )
Taxes on international activities |  |  | (0.8 | ) |  |  | (0.6 | ) |  |  | 0.8 |
Research credit |  |  | (2.1 | ) |  |  | (3.9 | ) |  |  | (4.5 | )
Net excess income tax benefit from stock-based compensation |  |  | (3.0 | ) |  |  | (3.7 | ) |  |  | (2.5 | )
Adjustments of prior period tax items |  |  | 0.9 |  |  |  | (1.3 | ) |  |  | — |
Compensation and benefits |  |  | 0.8 |  |  |  | 0.6 |  |  |  | 0.3 |
Distributable foreign earnings |  |  | 1.4 |  |  |  | 4.6 |  |  |  | — |
Other items, net |  |  | — |  |  |  | 0.6 |  |  |  | 1.5 |
Effective tax rate |  |  | 17.8 | % |  |  | 15.7 | % |  |  | 14.1 | %
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, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Beginning balance |  | $ | 11,112 |  |  | $ | 11,938 |  |  | $ | 15,199 |
Additions to current year tax positions |  |  | 5,673 |  |  |  | 3,933 |  |  |  | 1,783 |
Reductions to prior year tax positions |  |  | (99 | ) |  |  | (141 | ) |  |  | (963 | )
Additions to prior year tax positions |  |  | 180 |  |  |  | — |  |  |  | 112 |
Lapse of applicable statute of limitations |  |  | (2,592 | ) |  |  | (4,618 | ) |  |  | (4,193 | )
Ending balance |  | $ | 14,274 |  |  | $ | 11,112 |  |  | $ | 11,938 |

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