Leases

9 Months Ended

Jun. 30, 2021

Leases [Abstract]

LEASES

NOTE 7: LEASES

We determine if a contract contains a lease at inception. Our lease portfolio consists primarily of operating leases for pawn store locations and corporate offices with lease terms ranging from three to ten years.

The information below provides a summary of our leasing activities. See Note 12 in our 2020 Annual Report for additional information about our leasing activities.

The table below presents balances of our operating leases:

(in thousands)	June 30, 2021		June 30, 2020		September 30, 2020
Right-of-use asset	$	185,467	$	204,591	$	183,809
Lease liability, current	$	47,241	$	48,840	$	49,742
Lease liability, non-current	149,342		167,716		153,040
Total lease liability	$	196,583	$	216,556	$	202,782

The table below provides the composition of our lease costs:

	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands)	2021		2020		2021		2020
Operating lease expense	$	15,699	$	15,624	$	47,237	$	47,603
Variable lease expense	3,601		3,025		9,768		8,925
Other (1)	(845)		—		(2,570)		—
Total lease expense	$	18,455	$	18,649	$	54,435	$	56,528
(1) Includes sublease rental income.

Lease expense is recognized on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in "Store" and "General and Administrative" expense, based on the underlying lease use.

Other supplemental information includes the following for our operating leases:

	Nine Months Ended June 30,
	2021		2020
Weighted-average remaining contractual lease term (years)	5.21		5.58
Weighted-average incremental borrowing rate	7.86	%	8.25	%

Maturities of lease liabilities as of June 30, 2021 were as follows (in thousands):

Remaining 2021	$	14,491
Fiscal 2022	59,908
Fiscal 2023	47,637
Fiscal 2024	35,724
Fiscal 2025	24,970
Thereafter	57,358
Total lease payments	$	240,088
Less: Portion representing interest	43,505
Present value of operating lease liabilities	$	196,583
Less: Current portion	47,241
Non-current portion	$	149,342

We recorded $33.5 million and $10.1 million in non-cash additions to our right of use assets and lease liabilities for the nine months ended June 30, 2021 and June 30, 2020, respectively.