In fiscal year 2016, Woodward and GE, consummated the formation of a strategic joint venture (the “JV”). For purposes of the JV, GE has been acting through GE Aerospace since April 2024. The JV was formed to develop, manufacture, and support fuel systems for specified existing and all future GE commercial aircraft engines that produce thrust in excess of fifty thousand pounds. Woodward is accounting for its 50% ownership interest in the JV using the equity method of accounting. The JV is a related party to Woodward and transactions between Woodward and the JV are included in our Aerospace segment.

Unamortized deferred revenue from material rights in connection with the JV formation included:


	June 30, 2025		September 30, 2024
Accrued liabilities	$	7,119	$	6,580
Other liabilities		232,173		232,164

Amortization of the deferred revenue (material right) recognized as an increase to sales were $1,717 for the three months and $4,347 for the nine months ended June 30, 2025, and $1,570 for the three months and $4,407 for the nine months ended June 30, 2024.

Other income related to Woodward’s equity interest in the earnings of the JV were as follows:


	Three Months Ended June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
Other income	$	11,221	$	10,788	$	32,763	$	29,644

As part of the JV formation, GE pays contingent consideration to Woodward consisting of fifteen annual payments of $4,894 per year, which began in the second quarter of fiscal year 2017, subject to certain claw-back conditions. Woodward received its annual payments of $4,894 during the three months ended March 31, 2025 and 2024, which were recorded as deferred income and included in “Net cash provided by operating activities” on the Condensed Consolidated Statements of Cash Flows.

Cash distributions to Woodward from the JV, recognized in “Other, net” in “Net cash provided by operating activities” on the Condensed Consolidated Statements of Cash Flows, were as follows:


	Three Months Ended June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
Cash distributions	$	9,000	$	8,000	$	30,000	$	26,500

Net sales to the JV were as follows:


	Three Months Ended June 30,				Nine Months Ended June 30,
	2025		2024		2025		2024
Net sales	$	22,551	$	19,465	$	67,517	$	61,817

Woodward net sales includes a reduction of $18,723 for the three months and $53,892 for the nine months ended June 30, 2025, compared to $14,606 for the three months and $44,137 for the nine months ended June 30, 2024 related to royalties owed to the JV by Woodward on sales by Woodward directly to third party aftermarket customers.

The Condensed Consolidated Balance Sheets include “Accounts receivable” related to amounts the JV owed Woodward, “Accounts payable” related to amounts Woodward owed the JV, and “Other assets” related to Woodward’s net investment in the JV, as follows:


	June 30, 2025		September 30, 2024
Accounts receivable	$	4,630	$	5,205
Accounts payable		5,781		11,378
Other assets		21,982		19,219