| Retirement Benefits | Note 20. Retirement benefits Woodward provides various retirement benefits to eligible members of the Company, including contributions to various defined contribution plans, pension benefits associated with defined benefit plans, postretirement medical benefits and postretirement life insurance benefits. Eligibility requirements and benefit levels vary depending on employee location. Defined contribution plans Most of the Company’s U.S. employees are eligible to participate in the U.S. defined contribution plan. The U.S. defined contribution plan allows employees to defer part of their annual income for income tax purposes into their personal 401(k) accounts. The Company makes matching contributions to eligible employee accounts, which are also deferred for employee personal income tax purposes. Certain non-U.S. employees are also eligible to participate in similar non-U.S. plans. Prior to January 1, 2021 most of Woodward’s U.S. employees with at least two years of qualifying service (such two years of service, the “Initial Period of Service”) received an annual contribution of Woodward stock, generally equal to 5% of their eligible prior year wages, to their personal Woodward Retirement Savings Plan accounts (the “Stock Contribution”). Effective as of January 1, 2021, the Board amended the Woodward Retirement Savings Plan to eliminate the Initial Period Service for purposes of the Stock Contribution. Eligible U.S. employees are now generally eligible to receive the Stock Contribution if they are employed by the Company on the last day of the applicable calendar year without regard to service time. The first Company Stock Contribution under the amended contribution rules were made during the second quarter of fiscal year 2022. In the second quarters of fiscal years 2022, 2021, and 2020, Woodward fulfilled its annual Woodward stock contribution obligation using shares held in treasury stock by issuing a total of 150 shares of common stock for a value of $17,132 in fiscal year 2022, 128 total shares of common stock for a value of $14,900 in fiscal year 2021, and 124 shares of common stock for a value of $14,748 in fiscal year 2020. The Woodward Retirement Savings Plan (the “WRS Plan”) held 2,553 shares of Woodward stock as of September 30, 2022 and 2,760 shares as of September 30, 2021. The shares held in the WRS Plan participate in dividends and are considered issued and outstanding for purposes of calculating basic and diluted earnings per share. Accrued liabilities included obligations to contribute shares of Woodward common stock to the WRS Plan in the amount of $14,769 as of September 30, 2022 and $11,588 as of September 30, 2021. The amount of expense associated with defined contribution plans was as follows:
Year Ended September 30,
2022
2021
2020
Company costs
$
40,898
$
33,717
$
33,769
Defined benefit plans Woodward has defined benefit plans that provide pension benefits for certain retired employees in the United States, the United Kingdom, Japan, and Germany. Woodward also provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees and their covered dependents and beneficiaries in the United States and the United Kingdom. Life insurance benefits are provided to certain retirees in the United States under frozen plans, which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for all of Woodward’s defined benefit pension and other postretirement benefit plans. Excluding the Woodward HRT Plan, which is only partially frozen to salaried participants, the defined benefit plans in the United States were frozen in fiscal year 2007 and no additional employees may participate in the U.S. plans and no additional service costs will be incurred. Pension Plans The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of retirement pension benefits were as follows:
At September 30,
2022
2021
2020
United States:
Weighted-average assumptions to determine benefit obligation:
Discount rate
5.70%
3.05%
2.75%
Weighted-average assumptions to determine periodic benefit costs:
Discount rate
3.05
2.75
3.25
Long-term rate of return on plan assets
5.00
7.15
7.39
The discount rate assumption is intended to reflect the rate at which the retirement benefits could be effectively settled based upon the assumed timing of the benefit payments. In the United States, Woodward uses a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding to determine the benefit obligations at year end.
At September 30,
2022
2021
2020
United Kingdom:
Weighted-average assumptions to determine benefit obligation:
Discount rate
5.35%
2.05%
1.62%
Rate of compensation increase
4.00
3.80
3.30
Weighted-average assumptions to determine periodic benefit costs:
Discount rate - service cost
2.15
1.71
1.79
Discount rate - interest cost
1.83
1.41
1.59
Rate of compensation increase
4.00
3.30
3.50
Long-term rate of return on plan assets
3.80
4.00
4.75
At September 30,
2022
2021
2020
Japan:
Weighted-average assumptions to determine benefit obligation:
Discount rate
1.60%
0.92%
1.10
%
Rate of compensation increase
2.00
2.00
2.00
Weighted-average assumptions to determine periodic benefit costs:
Discount rate - service cost
1.13
1.33
0.72
Discount rate - interest cost
0.65
0.74
0.31
Rate of compensation increase
2.25
2.00
2.00
Long-term rate of return on plan assets
2.00
2.00
2.50
At September 30,
2022
2021
2020
Germany:
Weighted-average assumptions to determine benefit obligation:
Discount rate
3.97
%
1.36
%
0.97
%
Rate of compensation increase
2.50
2.50
2.50
Weighted-average assumptions to determine periodic benefit costs:
Discount rate - service cost
1.54
1.11
1.01
Discount rate - interest cost
1.06
0.76
0.56
Rate of compensation increase
2.50
2.50
2.50
In the United Kingdom, Germany and Japan, Woodward uses a high-quality corporate bond yield curve matched with separate cash flows to develop a single rate to determine the single rate equivalent to settle the entire benefit obligations in each jurisdiction. For the fiscal years ended September 30, 2022 and 2021, the discount rate used to determine periodic service cost and interest cost components of the overall benefit costs was based on spot rates derived from the same high-quality corporate bond yield curve used to determine the September 30, 2021 and 2020 benefit obligation, respectively, matched with separate cash flows for each future year. Compensation increase assumptions, where applicable, are based upon historical experience and anticipated future management actions. In determining the long-term rate of return on plan assets, Woodward assumes that the historical long-term compound growth rates of equity and fixed-income securities will predict the future returns of similar investments in the plan portfolio. Investment management and other fees paid out of the plan assets are factored into the determination of asset return assumptions. Mortality assumptions are based on published mortality studies developed primarily based on past experience of the broad population and modified for projected longevity trends. The projected benefit obligations in the United States as of September 30, 2022 and September 30, 2021 were based on the Society of Actuaries (“SOA”) Pri-2012 Mortality Tables Report using the SOA’s Mortality Improvement Scale MP-2019 (“MP-2019”) and projected forward using a custom projection scale based on MP-2019 with a 5-year convergence period and a long-term rate of 0.75%. As of September 30, 2022 and September 30, 2021, mortality assumptions in Japan were based on the Standard rates 2020 and mortality assumptions for the United Kingdom pension scheme were based on the Self-administered pension scheme (“SAPS”) S3 “all” tables with a projected 1.5% annual improvement rate. As of September 30, 2022, and September 30, 2021, mortality assumptions in Germany were based on the Heubeck 2018 G mortality tables. Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statement of Earnings:
Year Ended September 30,
United States
Other Countries
Total
2022
2021
2020
2022
2021
2020
2022
2021
2020
Service cost
$
1,554
$
1,729
$
1,659
$
2,339
$
2,922
$
2,865
$
3,893
$
4,651
$
4,524
Interest cost
5,281
4,957
5,590
1,612
1,361
1,278
6,893
6,318
6,868
Expected return on plan assets
(10,853
)
(14,144
)
(12,346
)
(2,434
)
(2,482
)
(2,827
)
(13,287
)
(16,626
)
(15,173
)
Amortization of:
Net losses
259
541
1,430
555
931
1,046
814
1,472
2,476
Net prior service cost
981
969
936
23
25
23
1,004
994
959
Net periodic (benefit) cost
$
(2,778
)
$
(5,948
)
$
(2,731
)
$
2,095
$
2,757
$
2,385
$
(683
)
$
(3,191
)
$
(346
) The following tables provide a reconciliation of the changes in the projected benefit obligation and fair value of assets for the defined benefit pension plans:
At or for the Year Ended September 30,
United States
Other Countries
Total
2022
2021
2022
2021
2022
2021
Changes in projected benefit obligation:
Projected benefit obligation at beginning of year
$
177,346
$
184,077
$
122,018
$
123,546
$
299,364
$
307,623
Plan amendment
—
611
—
—
—
611
Service cost
1,554
1,729
2,339
2,922
3,893
4,651
Interest cost
5,281
4,957
1,612
1,361
6,893
6,318
Net actuarial losses (gains)
(43,639
)
(6,496
)
(40,968
)
(3,459
)
(84,607
)
(9,955
)
Contribution by participants
—
—
10
10
10
10
Benefits paid
(8,098
)
(7,532
)
(3,487
)
(3,782
)
(11,585
)
(11,314
)
Foreign currency exchange rate changes
—
—
(16,047
)
1,420
(16,047
)
1,420
Projected benefit obligation at end of year
$
132,444
$
177,346
$
65,477
$
122,018
$
197,921
$
299,364
Changes in fair value of plan assets:
Fair value of plan assets at beginning of year
$
221,263
$
201,555
$
69,844
$
65,154
$
291,107
$
266,709
Actual return on plan assets
(58,684
)
27,240
(9,822
)
4,675
(68,506
)
31,915
Contributions by the Company
—
—
2,370
2,185
2,370
2,185
Contributions by plan participants
—
—
10
10
10
10
Benefits paid
(8,098
)
(7,532
)
(3,487
)
(3,782
)
(11,585
)
(11,314
)
Foreign currency exchange rate changes
—
—
(11,336
)
1,602
(11,336
)
1,602
Fair value of plan assets at end of year
$
154,481
$
221,263
$
47,579
$
69,844
$
202,060
$
291,107
Net over/(under) funded status at end of year
$
22,037
$
43,917
$
(17,898
)
$
(52,174
)
$
4,139
$
(8,257
) At September 30, 2022, the Company’s defined benefit pension plans in the United Kingdom, Japan and Germany represented $30,788, $6,976 and $27,713 of the total projected benefit obligation, respectively. At September 30, 2022, the United Kingdom and Japan pension plan assets represented $39,096 and $8,483 of the total fair value of all plan assets, respectively. The German pension plans are unfunded and have no plan assets. The largest contributor to the net actuarial gains affecting the funded status for the defined benefit pension plans in the United States is due to an increase in the discount rate. The largest contributor to the net actuarial gains affecting the benefit obligation for the defined benefit pension plans in the United Kingdom, Japan, and Germany is due to an increase in the discount rate. The accumulated benefit obligations of the Company’s defined benefit pension plans at September 30, 2022 was $132,444 in the United States, $30,342 in the United Kingdom, $6,432 in Japan, and $27,707 in Germany, and at September 30, 2021 was $177,346 in the United States, $60,690 in the United Kingdom, $8,958 in Japan, and $50,402 in Germany.
Plans with accumulated benefit obligation in excess of plan assets
Plans with accumulated benefit obligation less than plan assets
At September 30,
At September 30,
2022
2021
2022
2021
Projected benefit obligation
$
(48,371
)
$
(112,302
)
$
(149,550
)
$
(187,062
)
Accumulated benefit obligation
(48,354
)
(111,151
)
(148,571
)
(186,245
)
Fair value of plan assets
18,459
57,945
183,601
233,161
The following tables provide the amounts recognized in the statement of financial position and accumulated other comprehensive losses for the defined benefit pension plans:
Year Ended September 30,
United States
Other Countries
Total
2022
2021
2022
2021
2022
2021
Amounts recognized in statement of financial position consist of:
Other non-current assets
$
24,159
$
43,917
$
9,892
$
2,182
$
34,051
$
46,099
Accrued liabilities
—
—
(976
)
(1,017
)
(976
)
(1,017
)
Other non-current liabilities
(2,122
)
—
(26,814
)
(53,339
)
(28,936
)
(53,339
)
Net over/(under) funded status at end of year
$
22,037
$
43,917
$
(17,898
)
$
(52,174
)
$
4,139
$
(8,257
)
Amounts recognized in accumulated other comprehensive income consist of:
Unrecognized net prior service cost
$
3,475
$
4,455
$
462
$
584
$
3,937
$
5,039
Unrecognized net losses (gains)
14,822
(10,816
)
(5,459
)
24,860
9,363
14,044
Total amounts recognized
18,297
(6,361
)
(4,997
)
25,444
13,300
19,083
Deferred taxes
(7,801
)
(1,691
)
(697
)
(7,785
)
(8,498
)
(9,476
)
Amounts recognized in accumulated other comprehensive income
$
10,496
$
(8,052
)
$
(5,694
)
$
17,659
$
4,802
$
9,607
The following table reconciles the changes in accumulated other comprehensive losses for the defined benefit pension plans:
Year Ended September 30,
United States
Other Countries
Total
2022
2021
2022
2021
2022
2021
Accumulated other comprehensive losses at beginning of year
$
(6,361
)
$
14,131
$
25,444
$
31,377
$
19,083
$
45,508
Net loss (gain)
25,898
(19,593
)
(28,712
)
(5,832
)
(2,814
)
(25,425
)
Prior service cost due to plan amendment
—
611
—
—
—
611
Amortization of:
Net losses
(259
)
(541
)
(555
)
(931
)
(814
)
(1,472
)
Prior service cost
(981
)
(969
)
(23
)
(25
)
(1,004
)
(994
)
Foreign currency exchange rate changes
—
—
(1,151
)
855
(1,151
)
855
Accumulated other comprehensive losses at end of year
$
18,297
$
(6,361
)
$
(4,997
)
$
25,444
$
13,300
$
19,083
Pension benefit payments are made from the assets of the pension plans. The German pension plans are unfunded; therefore, benefit payments are made from Company contributions into these plans as required to meet the payment obligations. Using foreign exchange rates as of September 30, 2022 and expected future service assumptions, it is anticipated that the future benefit payments will be as follows:
Year Ending September 30,
United States
Other Countries
Total
2023
$
8,839
$
3,184
$
12,023
2024
9,310
3,083
12,393
2025
9,673
3,060
12,733
2026
9,967
3,069
13,036
2027
10,235
3,180
13,415
2028 – 2032
52,807
19,239
72,046
Woodward expects its pension plan contributions in fiscal year 2023 will be $1,044 in the United Kingdom, $134 in Japan and $990 in Germany. Woodward expects to have no pension plan contributions in fiscal year 2023 in the United States. Pension plan assets The overall investment objective of the pension plan assets is to earn a rate of return over time which, when combined with Company contributions, satisfies the benefit obligations of the pension plans and maintains sufficient liquidity to pay benefits. As the timing and nature of the plan obligations varies for each Company sponsored pension plan, investment strategies have been individually designed for each pension plan with a common focus on maintaining diversified investment portfolios that provide for long-term growth while minimizing the risk to principal associated with short-term market behavior. The strategy for each of the plans balances the requirements to generate returns, using investments expected to produce higher returns, such as equity securities, with the need to control risk within the pension plans using less volatile investment assets, such as debt securities. A strategy of more equity-oriented allocation is adopted for those plans which have a longer-term investment plan based on the timing of the associated benefit obligations. Risks associated with the plan assets include interest rate fluctuation risk, market fluctuation risk, risk of default by debt issuers and liquidity risk. To manage these risks, the assets are managed by established, professional investment firms and performance is evaluated regularly by the Company’s pension oversight committee against specific benchmarks and each plan’s investment objectives. Liability management and asset class diversification are central to the Company’s risk management approach and overall investment strategy. The assets of the U.S. plans are invested in actively managed mutual funds. The assets of the plans in the United Kingdom and Japan are invested in actively managed pooled investment funds. Each individual mutual fund or pooled investment fund has been selected based on the investment strategy of the related plan, which mirrors a specific asset class within the associated target allocation. The plans in Germany are unfunded and have no plan assets. Pension plan assets at September 30, 2022 and 2021 do not include any direct investment in Woodward’s common stock. The asset allocations are monitored and rebalanced regularly by investment managers assigned to the individual pension plans. The actual allocations of pension plan assets and target allocation ranges by asset class, are as follows:
At September 30,
2022
2021
Percentage of Plan Assets
Target Allocation Ranges
Percentage of Plan Assets
Target Allocation Ranges
United States:
Asset Class
Equity Securities
29.5%
2.4%
—
51.2%
30.7%
2.5%
—
51.2%
Debt Securities
69.0%
58.8%
—
87.6%
67.7%
58.8%
—
87.5%
Other
1.5%
0.0%
1.6%
0.0%
100.0%
100.0%
United Kingdom:
Asset Class
Equity Securities
46.2%
50.0%
—
90.0%
42.3%
50.0%
—
90.0%
Debt Securities
52.3%
45.0%
—
70.0%
57.3%
45.0%
—
70.0%
Other
1.5%
0.0%
0.4%
0.0%
100.0%
100.0%
Japan:
Asset Class
Equity Securities
39.9%
36.0%
—
44.0%
40.3%
36.0%
—
44.0%
Debt Securities
60.1%
55.0%
—
63.0%
58.8%
55.0%
—
63.0%
Other
0.0%
0.0%
—
2.0%
0.9%
0.0%
—
2.0%
100.0%
100.0%
Actual allocations to each asset class can vary from target allocations due to periodic market value fluctuations, investment strategy changes, and the timing of benefit payments and contributions. The following tables present Woodward’s pension plan assets using the fair value hierarchy established by U.S. GAAP:
At September 30, 2022
Level 1
Level 2
Level 3
United States
Other Countries
United States
Other Countries
United States
Other Countries
Total
Asset Category:
Cash and cash equivalents
$
2,265
$
467
$
—
$
—
$
—
$
—
$
2,732
Mutual funds:
U.S. corporate bond fund
106,653
—
—
—
—
—
106,653
U.S. equity large cap fund
28,088
—
—
—
—
—
28,088
International equity large cap growth fund
17,475
—
—
—
—
—
17,475
Pooled funds:
Japanese equity securities
—
—
—
1,775
—
—
1,775
International equity securities
—
—
—
1,610
—
—
1,610
Japanese fixed income securities
—
—
—
3,875
—
—
3,875
International fixed income securities
—
—
—
1,325
—
—
1,325
Global target return equity/bond fund
—
—
—
11,533
—
—
11,533
Index linked U.K. equity fund
—
—
—
2,253
—
—
2,253
Index linked international equity fund
—
—
—
4,271
—
—
4,271
Index linked U.K. corporate bonds fund
—
—
—
12,124
—
—
12,124
Index linked U.K. government securities fund
—
—
—
3,701
—
—
3,701
Index linked U.K. long-term government securities fund
—
—
—
4,645
—
—
4,645
Total assets
$
154,481
$
467
$
—
$
47,112
$
—
$
—
$
202,060
At September 30, 2021
Level 1
Level 2
Level 3
United States
Other Countries
United States
Other Countries
United States
Other Countries
Total
Asset Category:
Cash and cash equivalents
$
3,508
$
324
$
—
$
—
$
—
$
—
$
3,832
Mutual funds:
U.S. corporate bond fund
149,727
—
—
—
—
—
149,727
U.S. equity large cap fund
41,988
—
—
—
—
—
41,988
International equity large cap growth fund
26,040
—
—
—
—
—
26,040
Pooled funds:
Japanese equity securities
—
—
—
2,610
—
—
2,610
International equity securities
—
—
—
2,180
—
—
2,180
Japanese fixed income securities
—
—
—
5,224
—
—
5,224
International fixed income securities
—
—
—
1,775
—
—
1,775
Global target return equity/bond fund
—
—
—
15,201
—
—
15,201
Index linked U.K. equity fund
—
—
—
3,236
—
—
3,236
Index linked international equity fund
—
—
—
6,093
—
—
6,093
Index linked U.K. corporate bonds fund
—
—
—
18,438
—
—
18,438
Index linked U.K. government securities fund
—
—
—
6,047
—
—
6,047
Index linked U.K. long-term government securities fund
—
—
—
8,716
—
—
8,716
Total assets
$
221,263
$
324
$
—
$
69,520
$
—
$
—
$
291,107
Cash and cash equivalents : Cash and cash equivalents held by the Company’s pension plans are held on deposit with creditworthy financial institutions. The fair value of the cash and cash equivalents are based on the quoted market price of the respective currency in which the cash is maintained. Pension assets invested in mutual funds : The assets of the Company’s U.S. pension plans are invested in various mutual funds which invest in both equity and debt securities. The fair value of the mutual funds is determined based on the quoted market price of each fund. Pension assets invested in pooled funds : The assets of the Company’s Japan and United Kingdom pension plans are invested in pooled investment funds, which include both equity and debt securities. The assets of the United Kingdom pension plan are invested in index-linked pooled funds which aim to replicate the movements of an underlying market index to which the fund is linked. Fair value of the pooled funds is based on the net asset value of shares held by the plan as reported by the fund sponsors. All pooled funds held by plans outside of the United States are considered to be invested in international equity and debt securities. Although the underlying securities may be largely domestic to the plan holding the investment assets, the underlying assets are considered international from the perspective of the Company. There were no transfers into or out of Level 3 assets in fiscal years 2022 or 2021. Other postretirement benefit plans Woodward provides other postretirement benefits to its employees including postretirement medical benefits and life insurance benefits. Postretirement medical benefits are provided to certain current and retired employees and their covered dependents and beneficiaries in the United States. Benefits include the option to elect company provided medical insurance coverage to age 65 and a Medicare supplemental plan after age 65. Life insurance benefits are also provided to certain retirees in the United States under frozen plans which are no longer available to current employees. A September 30 measurement date is utilized to value plan assets and obligations for Woodward’s other postretirement benefit plans. The postretirement medical benefit plans, other than the plan assumed in an acquisition in fiscal year 2009, were frozen in fiscal year 2006 and no additional employees may participate in the plans. Generally, employees who had attained age 55 and had rendered 10 or more years of service before the plans were frozen were eligible for these postretirement medical benefits. Certain participating retirees are required to contribute to the plans in order to maintain coverage. The plans provide postretirement medical benefits for approximately 7 retired employees and their covered dependents and beneficiaries and may provide future benefits to 401 active employees and their covered dependents and beneficiaries, upon retirement, if the employees elect to participate. All the postretirement medical plans are fully insured for retirees who have attained age 65. The actuarial assumptions used in measuring the net periodic benefit cost and plan obligations of postretirement benefits were as follows:
At September 30,
2022
2021
2020
Weighted-average discount rate used to determine benefit obligation
5.70
%
2.80
%
2.45
%
Weighted-average discount rate used to determine net periodic benefit cost
2.80
2.45
3.05
The discount rate assumption is intended to reflect the rate at which the postretirement benefits could be effectively settled based upon the assumed timing of the benefit payments. Woodward used a bond portfolio matching analysis based on recently traded, non-callable bonds rated AA or better that have at least $50 million outstanding to determine the benefit obligations at year end. Mortality assumptions are based on published mortality studies developed primarily based on past experience of the broad population and modified for projected longevity trends. The projected benefit obligations in the United States as of September 30, 2022 and September 30, 2021 were based on the SOA Pri-2012 Mortality Tables Report using the SOA’s MP-2019 and projected forward using a custom projection scale based on MP-2019 with a 5-year convergence period and a long-term rate of 0.75%. Assumed healthcare cost trend rates at September 30, were as follows:
2022
2021
Health care cost trend rate assumed for next year
6.00
%
6.00
%
Rate to which the cost trend rate is assumed to decline
(the ultimate trend rate)
5.00
%
5.00
%
Year that the rate reaches the ultimate trend rate
2027
2027
Net periodic benefit costs consist of the following components reflected as expense in Woodward’s Consolidated Statements of Earnings:
Year Ended September 30,
2022
2021
2020
Service cost
$
1
$
1
$
2
Interest cost
577
599
782
Amortization of:
Net (gain) loss
(94
)
30
47
Net prior service cost (benefit)
—
1
3
Net periodic cost
$
484
$
631
$
834
The following table provides a reconciliation of the changes in the accumulated postretirement benefit obligation and fair value of assets for the postretirement benefits:
Year Ended September 30,
2022
2021
Changes in accumulated postretirement benefit obligation:
Accumulated postretirement benefit obligation at beginning of year
$
21,544
$
25,445
Service cost
1
1
Interest cost
577
599
Premiums paid by plan participants
923
993
Net actuarial gains
(3,504
)
(2,422
)
Benefits paid
(2,744
)
(3,072
)
Accumulated postretirement benefit obligation at end of year
$
16,797
$
21,544
Changes in fair value of plan assets:
Fair value of plan assets at beginning of year
$
—
$
—
Contributions by the company
1,821
2,079
Premiums paid by plan participants
923
993
Benefits paid
(2,744
)
(3,072
)
Fair value of plan assets at end of year
$
—
$
—
Funded status at end of year
$
(16,797
)
$
(21,544
) The following tables provide the amounts recognized in the statement of financial position and accumulated other comprehensive losses for the postretirement plans:
Year Ended September 30,
2022
2021
Amounts recognized in statement of financial position consist of:
Accrued liabilities
$
(1,803
)
$
(1,808
)
Other non-current liabilities
(14,994
)
(19,736
)
Funded status at end of year
$
(16,797
)
$
(21,544
)
Amounts recognized in accumulated other comprehensive income consist of:
Unrecognized net prior service cost (benefit)
$
-
$
-
Unrecognized net gains
(6,225
)
(2,815
)
Total amounts recognized
(6,225
)
(2,815
)
Deferred taxes
1,247
289
Amounts recognized in accumulated other comprehensive income
$
(4,978
)
$
(2,526
) Woodward pays plan benefits from its general funds; therefore, there are no segregated plan assets as of September 30, 2022 or September 30, 2021. The accumulated benefit obligations of the Company’s postretirement plans were $16,797 at September 30, 2022 and $21,544 at September 30, 2021. The largest contributor to the actuarial gains affecting the Company’s postretirement plans accumulated benefit obligations were the claims experience being lower than expected and increase in discount rate. The following table reconciles the changes in accumulated other comprehensive losses for the other postretirement benefit plans:
Year Ended September 30,
2022
2021
Accumulated other comprehensive losses at beginning of year
$
(2,815
)
$
(362
)
Net gain
(3,504
)
(2,422
)
Amortization of:
Net gains (losses)
94
(30
)
Prior service cost
—
(1
)
Accumulated other comprehensive losses at end of year
$
(6,225
)
$
(2,815
) Using expected future service, it is anticipated that the future Company contributions to pay benefits for other postretirement benefit plans, excluding participate contributions, will be as follows:
Year Ending September 30,
2023
$
2,816
2024
2,765
2025
2,691
2026
2,602
2027
2,490
2028 – 2032
10,659 |
