Leases (Tables)

6 Months Ended

Mar. 31, 2022

Lease-related assets and liabilities follows:

	Classification on the Condensed Consolidated Balance Sheets	March 31, 2022		September 30, 2021
Assets:
Operating lease assets	Other assets	$	23,417	$	19,370
Finance lease assets	Property, plant and equipment, net		1,854		781
Total lease assets			25,271		20,151

Current liabilities:
Operating lease liabilities	Accrued liabilities		4,930		5,260
Finance lease liabilities	Current portion of long-term debt		459		728
Noncurrent liabilities:
Operating lease liabilities	Other liabilities		19,125		14,770
Finance lease liabilities	Long-term debt, less current portion		1,419		475
Total lease liabilities		$	25,933	$	21,233

Lease-Related Expenses

Lease-related expenses were as follows:

	Three-Months Ended March 31,					Six-Months Ended March 31,
	2022		2021			2022			2021
Operating lease expense	$	1,653	$	1,615		$	3,260		$	3,168
Amortization of finance lease assets		95		94			174			220
Interest on finance lease liabilities		8		17			16			35
Variable lease expense		203		496			606			818
Short-term lease expense		50		76			90			158
Sublease (income)¹		—		(214	)		(192	)		(382	)
Total lease expense	$	2,009	$	2,084		$	3,954		$	4,017

(1)

Relates to two separate subleases Woodward entered into for a leased manufacturing building in Niles, Illinois. During the three-months ended March 31, 2022, these subleases were terminated.

Lease-related supplemental cash flow information was as follows:

	Six-Months Ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	2,776	$	2,671
Operating cash flows for finance leases		16		35
Financing cash flows for finance leases		574		835
Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases		7,999		5,070
Finance leases		1,260		12

Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements

The carrying amount of property, plant and equipment leased to others through embedded leasing arrangements, included in “Property, plant and equipment, net” on the Condensed Consolidated Balance Sheets, follows:

	March 31, 2022			September 30, 2021
Property, plant and equipment leased to others through embedded leasing arrangements	$	71,554		$	93,732
Less accumulated depreciation		(28,027	)		(35,733	)
Property, plant and equipment leased to others through embedded leasing arrangements, net	$	43,527		$	57,999