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Revenue | 3 Months Ended
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Dec. 31, 2023
Revenue from Contract with Customer [Abstract] |
Revenue | Note 3. Revenue The amount of revenue recognized as point in time or over time follows:
|  | Three Months Ended December 31, 2023 |  |  | Three Months Ended December 31, 2022 |
|  | Aerospace |  |  | Industrial |  |  | Consolidated |  |  | Aerospace |  |  | Industrial |  |  | Consolidated |
Point in time |  | $ | 188,503 |  |  | $ | 186,630 |  |  | $ | 375,133 |  |  | $ | 169,840 |  |  | $ | 139,839 |  |  | $ | 309,679 |
Over time |  |  | 272,253 |  |  |  | 139,344 |  |  |  | 411,597 |  |  |  | 225,845 |  |  |  | 83,095 |  |  |  | 308,940 |
Total net sales |  | $ | 460,756 |  |  | $ | 325,974 |  |  | $ | 786,730 |  |  | $ | 395,685 |  |  | $ | 222,934 |  |  | $ | 618,619 |
Accounts Receivable Accounts receivable consisted of the following:
|  | December 31, 2023 |  |  | September 30, 2023 |
Billed receivables |  |  |  |  |  |
Trade accounts receivable |  | $ | 426,598 |  |  | $ | 434,287 |
Other (Chinese financial institutions) |  |  | 57,098 |  |  |  | 50,940 |
Total billed receivables |  |  | 483,696 |  |  |  | 485,227 |
Current unbilled receivables (contract assets) |  |  | 300,146 |  |  |  | 270,479 |
Total accounts receivable |  |  | 783,842 |  |  |  | 755,706 |
Less: Allowance for uncollectible amounts |  |  | (5,777 | ) |  |  | (5,847 | )
Total accounts receivable, net |  | $ | 778,065 |  |  | $ | 749,859 |
As of December 31, 2023, “Other assets” on the Condensed Consolidated Balance Sheets includes $6,945 of unbilled receivables not expected to be invoiced and collected within a period of twelve months, compared to $7,332 as of September 30, 2023. Accounts receivable in Woodward’s Condensed Consolidated Financial Statements represent the net amount expected to be collected, and an allowance for uncollectible amounts related to credit losses is established based on expected losses. Expected losses are estimated by reviewing specific customer accounts, taking into consideration accounts receivable aging, credit risk of the customers, and historical payment history, as well as current and forecasted economic conditions and other relevant factors. The allowance for uncollectible amounts and change in expected credit losses for trade accounts receivable and unbilled receivables (contract assets) consisted of the following:
|  | Three Months Ended December 31, |
|  | 2023 |  |  | 2022 |
Balance, beginning |  | $ | 5,847 |  |  | $ | 3,922 |
Changes in estimates |  |  | 298 |  |  |  | 344 |
Write-offs |  |  | (459 | ) |  |  | (83 | )
Other 1 |  |  | 91 |  |  |  | 20 |
Balance, ending |  | $ | 5,777 |  |  | $ | 4,203 |
(1) Includes effects of foreign exchange rate changes during the period. Contract liabilities Contract liabilities consisted of the following:
|  | December 31, 2023 |  |  | September 30, 2023 |
|  | Current |  |  | Noncurrent |  |  | Current |  |  | Noncurrent |
Deferred revenue from material rights from GE joint venture formation |  | $ | 6,255 |  |  | $ | 232,553 |  |  | $ | 6,147 |  |  | $ | 233,997 |
Deferred revenue from advanced invoicing and/or prepayments from customers |  |  | 9,638 |  |  |  | 4,196 |  |  |  | 6,868 |  |  |  | 2,196 |
Liability related to customer supplied inventory |  |  | 14,357 |  |  |  | — |  |  |  | 14,543 |  |  |  | — |
Deferred revenue from material rights related to engineering and development funding |  |  | 6,872 |  |  |  | 183,190 |  |  |  | 6,190 |  |  |  | 178,464 |
Net contract liabilities |  | $ | 37,122 |  |  | $ | 419,939 |  |  | $ | 33,748 |  |  | $ | 414,657 |
Woodward recognized revenue of $13,033 in the three months ended December 31, 2023 from contract liabilities balances recorded as of October 1, 2023, compared to $8,885 in the three months ended December 31, 2022 from contract liabilities balances recorded as of October 1, 2022. Remaining performance obligations Remaining performance obligations related to the aggregate amount of the total contract transaction price of firm orders for which the performance obligation has not yet been recognized in revenue as of December 31, 2023 was $2,435,837, compared to $2,325,533 as of September 30, 2023, the majority of which relates to Woodward’s Aerospace segment in both periods. Woodward expects to recognize almost all of these remaining performance obligations within two years after December 31, 2023. Remaining performance obligations related to material rights that have not yet been recognized in revenue as of December 31, 2023 was $472,957, compared to $457,391 as of September 30, 2023, of which $8,865 is expected to be recognized in the rem ainder of fiscal year 2024, $13,291 is expected to be rec ognized in fiscal year 2025, and the remaining balance is expected to be recognized thereafter. Woodward expects to recognize revenue from performance obligations related to material rights over the life of the underlying programs, which may be as long as forty years. Disaggregation of Revenue Woodward designs, produces, and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in markets throughout the world. Woodward reports financial results for each of its Aerospace and Industrial reportable segments. Woodward further disaggregates its revenue from contracts with customers by primary market as Woodward believes this best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. Revenue by primary market for the Aerospace reportable segment was as follows:
|  | Three Months Ended December 31, |
|  | 2023 |  |  | 2022 |
Commercial OEM |  | $ | 171,354 |  |  | $ | 138,875 |
Commercial aftermarket |  |  | 137,544 |  |  |  | 126,643 |
Defense OEM |  |  | 93,425 |  |  |  | 89,762 |
Defense aftermarket |  |  | 58,433 |  |  |  | 40,405 |
Total Aerospace segment net sales |  | $ | 460,756 |  |  | $ | 395,685 |
Revenue by primary market for the Industrial reportable segment was as follows:
|  | Three Months Ended December 31, |
|  | 2023 |  |  | 2022 |
Power generation |  | $ | 98,106 |  |  | $ | 81,577 |
Transportation |  |  | 174,469 |  |  |  | 88,915 |
Oil and gas |  |  | 53,399 |  |  |  | 52,442 |
Total Industrial segment net sales |  | $ | 325,974 |  |  | $ | 222,934 |
During fiscal year 2023, for purposes of how we assess performance, we determined that certain revenue was better aligned with our markets consisting of power generation, transportation, and oil and gas, rather than the reciprocating engines and industrial turbines, as previously reported. For comparability, we have reclassified revenue for the three months ended December 31, 2022 to conform to the new presentation. This reclassification of revenue had no impact on our consolidated financial results. The customers who each account for approximately 10% or more of net sales of each of Woodward’s reportable segments are as follows:
|  | Three Months Ended December 31, 2023 |  | Three Months Ended December 31, 2022
Aerospace |  | General Electric Company, RTX Corporation, The Boeing Company |  | RTX Corporation, General Electric Company, The Boeing Company
Industrial |  | Weichai Westport, Rolls-Royce PLC, Caterpillar, Inc. |  | Rolls-Royce PLC, Caterpillar, Inc., Wartsila, General Electric Company

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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