Leases (Tables)

12 Months Ended

Sep. 30, 2022

Lease-related assets and liabilities follows:

	Classification on the Consolidated Balance Sheets	September 30, 2022		September 30, 2021
Assets:
Operating lease assets	Other assets	$	25,144	$	19,370
Finance lease assets	Property, plant and equipment, net		5,474		781
Total lease assets			30,618		20,151

Current liabilities:
Operating lease liabilities	Accrued liabilities		4,587		5,260
Finance lease liabilities	Current portion of long-term debt		856		728
Noncurrent liabilities:
Operating lease liabilities	Other liabilities		21,443		14,770
Finance lease liabilities	Long-term debt, less current portion		4,405		475
Total lease liabilities		$	31,291	$	21,233

Supplemental Lease-Related Information

Supplemental lease-related information follows:

	September 30, 2022			September 30, 2021
Weighted average remaining lease term
Operating leases	8.3 years			4.3 years
Finance leases	9.7 years			1.7 years
Weighted average discount rate
Operating leases		3.6	%		3.2	%
Finance leases		3.4	%		2.8	%

Lease-Related Expenses

Lease-related expenses were as follows:

	Year Ended September 30,
	2022			2021			2020
Operating lease expense	$	6,335		$	6,559		$	6,164
Amortization of financing lease assets		454			425			476
Interest on financing lease liabilities		51			58			87
Variable lease expense		929			1,495			1,101
Short-term lease expense		190			283			466
Sublease income¹		(192	)		(680	)		(697	)
Total lease expense	$	7,767		$	8,140		$	7,597

(1)

Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois. During fiscal year 2022, these subleases were terminated.

Lease-related supplemental cash flow information was as follows:

	Year Ended September 30,
	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	5,303	$	5,707	$	5,622
Operating cash flows for finance leases		51		58		87
Financing cash flows for finance leases		796		1,639		1,590
Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases		14,678		6,871		6,501
Finance leases		4,046		35		1,244

Maturities of Lease Liabilities

Maturities of lease liabilities were as follows:

Year Ending September 30:	Operating Leases			Finance Leases
2023	$	5,383		$	1,032
2024		4,695			1,002
2025		3,768			870
2026		3,156			870
2027		2,592			868
Thereafter		10,959			1,919
Total lease payments		30,553			6,561
Less: imputed interest		(4,523	)		(1,300	)
Total lease obligations	$	26,030		$	5,261

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” at the Consolidated Balance Sheets, follows:

	September 30, 2022			September 30, 2021
Property, plant and equipment leased to others through embedded leasing arrangements	$	44,912		$	93,732
Less accumulated depreciation		(25,508	)		(35,733	)
Property, plant and equipment leased to others through embedded leasing arrangements, net	$	19,404		$	57,999