Leases (Tables)

3 Months Ended

Dec. 31, 2021

Lease-related assets and liabilities follows:

	Classification on the Condensed Consolidated Balance Sheets	December 31, 2021		September 30, 2021
Assets:
Operating lease assets	Other assets	$	20,871	$	19,370
Finance lease assets	Property, plant and equipment, net		690		781
Total lease assets			21,561		20,151

Current liabilities:
Operating lease liabilities	Accrued liabilities		5,270		5,260
Finance lease liabilities	Current portion of long-term debt		424		728
Noncurrent liabilities:
Operating lease liabilities	Other liabilities		16,294		14,770
Finance lease liabilities	Long-term debt, less current portion		388		475
Total lease liabilities		$	22,376	$	21,233

Lease-Related Expenses

Lease-related expenses were as follows:

	Three-Months Ended December 31,
	2021			2020
Operating lease expense	$	1,607		$	1,553
Amortization of finance lease assets		79			126
Interest on finance lease liabilities		8			18
Variable lease expense		403			322
Short-term lease expense		40			82
Sublease income¹		(192	)		(168	)
Total lease expense	$	1,945		$	1,933

(1)

Relates to two separate subleases Woodward has entered into for a leased manufacturing building in Niles, Illinois.

Lease-related supplemental cash flow information was as follows:

	Three-Months Ended December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,343	$	1,151
Operating cash flows for finance leases		8		18
Financing cash flows for finance leases		382		396
Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases		3,082		1,130
Finance leases		—		12

Property, Plant and Equipment Leased to Others through Embedded Leasing Arrangements

The carrying amount of property, plant and equipment leased to others through embedded leasing arrangements, included in “Property, plant and equipment, net” on the Condensed Consolidated Balance Sheets, follows:

	December 31, 2021			September 30, 2021
Property, plant and equipment leased to others through embedded leasing arrangements	$	71,958		$	93,732
Less accumulated depreciation		(27,070	)		(35,733	)
Property, plant and equipment leased to others through embedded leasing arrangements, net	$	44,888		$	57,999