XML 30 R16.htm IDEA: XBRL DOCUMENT v3.22.2.2
Leasing Arrangements
12 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leasing Arrangements
(9)
Leasing Arrangements
The Company is party to several operating leases, the majority of which are related to office, warehouse and manufacturing space. The related operating lease assets and obligations are reflected within right-of-use assets, net, current operating lease obligations and long-term operating lease obligations on the Consolidated Balance Sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred.
The lease costs for these operating leases reflected in our Consolidated Statements of Operations, as well as the right-of-use assets, net obtained during these periods in exchange for operating lease liabilities, are as follows:
 
Year Ended September 30,
  
2022
     2021  
Lease costs within cost of sales
  
$
905
     $ 795  
Lease costs within operating expenses
  
 
1,406
       1,542  
Right-of-use assets, net obtained in exchange for operating lease liabilities
  
 
3,068
       1,073  
    
 
 
    
 
 
 
In addition, the Company periodically enters into other short-term operating leases, generally with an initial term of twelve months or less. These leases are not recorded on the Consolidated Balance Sheets and the related lease expense is immaterial for fiscal 2022, 2021 and 2020.
The Company often has options to renew lease terms, with the exercise of lease renewal options generally at the Company’s sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The discount rate implicit within our leases is generally not determinable and, therefore, the Company uses its incremental borrowing rate as the basis for its discount rate. The weighted average remaining lease term for our operating leases and the weighted average discount rate used to measure our operating leases were as follows:
 
As of September 30,
  
2022
    2021  
Weighted average remaining lease term
  
 
3.9 yrs.
 
    3.6 yrs.  
Average discount rate
  
 
3.5
% 
    3.2 % 
    
 
 
   
 
 
 
Maturities of lease liabilities by fiscal year for the Company’s operating lease liabilities were as follows as of September 30, 2022:
 
2023
   $  1,952  
2024
     1,614  
2025
     1,343  
2026
     780  
2027
     536  
Thereafter
     135  
    
 
 
 
Total lease payments
     6,360  
Less amount of lease payment representing interest
     (403 ) 
    
 
 
 
Total present value of lease payments
   $ 5,957  
    
 
 
 
 
Supplemental Cash Flow Information (Cash Paid for Amounts Included in Measurement of Lease Liabilities)
 
Year Ended September 30,
  
2022
 
  
2021
 
  
2020
 
Cash paid for amounts included in the measurement of lease liabilities:
                          
Operating cash flows from operating leases
  
$
2,338
     $ 2,228      $ 1,693