Leases

9 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

NOTE 5: 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: Leases in our 2021 Annual Report for additional information about our leasing activities. The table below presents balances of our operating leases:

(in thousands)	June 30, 2022		June 30, 2021		September 30, 2021
Right-of-use asset	$	217,506	$	185,467	$	200,990
Lease liability, current	$	53,358	$	47,241	$	52,263
Lease liability, non-current	175,489		149,342		161,330
Total lease liability	$	228,847	$	196,583	$	213,593

The table below provides the composition of our lease costs:

	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Operating lease expense*	$	17,264	$	14,854	$	50,415	$	44,667
Variable lease expense	3,824		3,601		11,200		9,768
Total lease expense	$	21,088	$	18,455	$	61,615	$	54,435
* Includes a reduction for 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,
	2022		2021
Weighted-average remaining contractual lease term (years)	5.14		5.21
Weighted-average incremental borrowing rate	8.20	%	7.86	%

Maturities of lease liabilities as of June 30, 2022 were as follows (in thousands):

Remaining 2022	$	17,427
Fiscal 2023	66,988
Fiscal 2024	55,727
Fiscal 2025	44,883
Fiscal 2026	34,908
Thereafter	60,419
Total lease payments	$	280,352
Less: Portion representing interest	51,505
Present value of operating lease liabilities	$	228,847
Less: Current portion	53,358
Non-current portion	$	175,489

We recorded $55.3 million and $33.5 million in non-cash additions to our right of use assets and lease liabilities for the nine months ended June 30, 2022 and June 30, 2021, respectively.