Leases (Tables)

9 Months Ended

Jun. 30, 2022

Lease-related assets and liabilities were as follows:

	Classification on the Condensed Consolidated Balance Sheets	June 30, 2022		September 30, 2021
Assets:
Operating lease assets	Other assets	$	24,108	$	19,370
Finance lease assets	Property, plant and equipment, net		1,733		781
Total lease assets			25,841		20,151

Current liabilities:
Operating lease liabilities	Accrued liabilities		4,896		5,260
Finance lease liabilities	Current portion of long-term debt		458		728
Noncurrent liabilities:
Operating lease liabilities	Other liabilities		19,844		14,770
Finance lease liabilities	Long-term debt, less current portion		1,303		475
Total lease liabilities		$	26,501	$	21,233

Lease-Related Expenses

Lease-related expenses were as follows:

	Three-Months Ended June 30,					Nine-Months Ended June 30,
	2022		2021			2022			2021
Operating lease expense	$	1,549	$	1,729		$	4,809		$	4,897
Amortization of finance lease assets		116		102			290			322
Interest on finance lease liabilities		14		13			30			48
Variable lease expense		226		282			832			1,100
Short-term lease expense		44		75			134			233
Sublease (income)¹		—		(104	)		(192	)		(486	)
Total lease expense	$	1,949	$	2,097		$	5,903		$	6,114

(1)

Relates to two separate subleases Woodward entered into for a leased manufacturing building in Niles, Illinois. During the nine-months ended June 30, 2022, these subleases were terminated.

Lease-related supplemental cash flow information was as follows:

	Nine-Months Ended June 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	4,136	$	4,229
Operating cash flows for finance leases		30		48
Financing cash flows for finance leases		690		1,236
Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases		9,997		6,759
Finance leases		1,260		35

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:

	June 30, 2022			September 30, 2021
Property, plant and equipment leased to others through embedded leasing arrangements	$	48,968		$	93,732
Less accumulated depreciation		(25,742	)		(35,733	)
Property, plant and equipment leased to others through embedded leasing arrangements, net	$	23,226		$	57,999