Leases

12 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

The following table summarizes lease balances presented on our consolidated balance sheets at September 30, 2023 and 2022 (in thousands):

	2023		2022
Operating lease right-of-use assets (a)	$	9,656	$	16,851
Operating lease liabilities, current	$	3,463	$	2,235
Operating lease liabilities, long-term	15,908		16,461
Operating lease liabilities	$	19,371	$	18,696

(a) Impairment loss of long-lived assets is a loss associated with a reduction of the fair value of an asset prompted by a triggering event. During the fourth quarter of fiscal 2023, DLH reduced its leased office space requirement by consolidating underutilized premises as part of an ongoing facility rationalization effort, to accurately reflect the operational needs of the business. As a result, the Company has determined that its Right of Use Assets experienced a reduction in fair value below its associated carrying value and recorded a $7.7 million loss of fair value.

For the years ended September 30, 2023 and 2022, total lease costs for our operating leases are as follows (in thousands):

	2023		2022
Operating	$	3,911	$	3,548
Short-term	287		114
Variable	95		120
Sublease income (a)	(282)		(258)
Lease costs	$	4,011	$	3,524

(a): The Company subleases a portion of one of its leased facilities. The sublease is classified as an operating lease with respect to the underlying asset. The sublease term is 5 years and includes two additional 1-year term extension options.

The Company's future minimum lease payments as of September 30, 2023 are as follows (in thousands):

For the Fiscal Year Ending September 30,
2024	$	4,612
2025	3,928
2026	3,700
2027	2,627
2028	2,377
Thereafter	6,295
Total future minimum lease payments	$	23,539
Less: imputed interest	(4,168)
Present value of future minimum lease payments	$	19,371
Less: current portion of operating lease liabilities	(3,463)
Long-term operating lease liabilities	$	15,908

At September 30, 2023, the weighted-average remaining lease term and weighted-average discount rate are 6.3 years and 6.3%, respectively. The calculation of the weighted-average discount rate was determined based on borrowing terms from our secured term loan.

Other information related to our leases is as follows for the years ending September 30, 2023 and 2022 (in thousands):

	2023		2022
Cash paid for amounts included in the measurement of lease liabilities	$	4,468	$	3,411
New lease liabilities, net of new right-of-use-assets	120		—
Other lease information	$	4,588	$	3,411