Commitments

3 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Letters of Credit

Under the Revolving Credit Facility, the Company has a total capacity of $225.0 million that may be used for a combination of cash borrowings and letter of credit issuances. At December 31, 2021, the Company had aggregate letters of credit outstanding in the amount of $11.3 million, primarily related to certain insurance policies as described in Note 2 - Significant Accounting Policies.

Purchase Commitments

As of December 31, 2021, the Company had unconditional purchase commitments for diesel fuel in the normal course of business in the aggregate amount of $3.4 million. Management does not expect any significant changes in the market value of these goods during the commitment period that would have a material adverse effect on the financial condition, results of operations and cash flows of the Company. As of December 31, 2021, our purchase commitments annually thereafter are as follows (in thousands):


Fiscal Year	Amount
Remainder of 2022	$	1,969
2023	1,453
Total	$	3,422

Minimum Royalties

The Company has lease agreements associated with aggregates facilities under which the Company makes royalty payments. These agreements are outside the scope of Topic 842. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. The Company has commitments in the form of minimum royalties as of December 31, 2021 in the amount of $2.3 million, due as follows (in thousands):


Fiscal Year	Amount
Remainder of 2022	$	234
2023	196
2024	189
2025	137
2026	124
Thereafter	1,460
Total	$	2,340

Royalty expense recorded in cost of revenue during the three months ended December 31, 2021 and 2020 was $0.3 million and $0.2 million, respectively.