Leases

9 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

The Company has operating leases for its corporate offices, warehouses, vehicles and equipment. The operating leases have remaining terms of up to 5.0 years. Some of the leases have options to extend or terminate the leases. The exercise of such options is generally at the Company’s discretion. The lease agreements do not contain any significant residual value guarantees or restrictive covenants. The Company also subleases excess corporate office space. The Company's finance leases and related balances are not significant.

The components of lease expense are:

	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands)	2021		2020		2021		2020
Finance lease – lease asset amortization	$	18	$	16	$	50	$	53
Finance lease – interest on lease liabilities	4		6		14		18
Operating lease cost	1,218		1,310		3,873		3,990
Operating lease impairment expense	—		—		172		—
Short-term lease cost	45		48		166		92
Variable lease cost (1)	360		371		1,178		1,122
Sublease income	(34)		(61)		(141)		(200)
Total net lease cost	$	1,611	$	1,690	$	5,312	$	5,075

(1) Variable lease costs primarily relate to the Company's election to combine non-lease components such as common area maintenance, insurance and taxes related to its real estate leases. To a lesser extent, the Company's equipment leases have variable costs associated with usage and subsequent changes to costs based upon an index.

Maturities of lease liabilities are:

	June 30, 2021
(in thousands)	Operating Leases		Finance Leases
2021	$	1,284	$	26
2022	4,509		103
2023	3,602		103
2024	2,501		83
2025	1,852		55
Thereafter	822		50
Total lease payments (1)	$	14,570	$	420
Less: imputed interest (2)	(1,617)		(59)
Total lease liabilities	$	12,953	$	361

(1) The weighted average remaining lease term is 3.6 years for operating leases and 4.4 years for finance leases.

(2) The weighted average discount rate is 6.6% for operating leases and 7.0% for finance leases.

Additionally, the Company has approximately $4.8 million of future payment obligations related to executed warehouse lease agreements that have not yet commenced as of June 30, 2021.

Supplemental disclosures of cash flow information related to leases are:

	Nine Months Ended June 30,
(in thousands)	2021		2020
Cash paid for amounts included in operating lease liabilities	$	3,225	$	3,642
Cash paid for amounts included in finance lease liabilities	35		26
Non-cash: lease liabilities arising from new operating lease assets obtained (1)	885		12,188
Non-cash: lease liabilities arising from new finance lease assets obtained	130		10
Non-cash: adjustments to lease assets and liabilities	3,705		1,592

(1) Nine months ended June 30, 2020 amount includes $12.2 million of lease liabilities recognized upon the adoption of ASC 842 on October 1, 2019.

Leases

Leases

The Company has operating leases for its corporate offices, warehouses, vehicles and equipment. The operating leases have remaining terms of up to 5.0 years. Some of the leases have options to extend or terminate the leases. The exercise of such options is generally at the Company’s discretion. The lease agreements do not contain any significant residual value guarantees or restrictive covenants. The Company also subleases excess corporate office space. The Company's finance leases and related balances are not significant.

The components of lease expense are:

	Three Months Ended June 30,				Nine Months Ended June 30,
(in thousands)	2021		2020		2021		2020
Finance lease – lease asset amortization	$	18	$	16	$	50	$	53
Finance lease – interest on lease liabilities	4		6		14		18
Operating lease cost	1,218		1,310		3,873		3,990
Operating lease impairment expense	—		—		172		—
Short-term lease cost	45		48		166		92
Variable lease cost (1)	360		371		1,178		1,122
Sublease income	(34)		(61)		(141)		(200)
Total net lease cost	$	1,611	$	1,690	$	5,312	$	5,075

(1) Variable lease costs primarily relate to the Company's election to combine non-lease components such as common area maintenance, insurance and taxes related to its real estate leases. To a lesser extent, the Company's equipment leases have variable costs associated with usage and subsequent changes to costs based upon an index.

Maturities of lease liabilities are:

	June 30, 2021
(in thousands)	Operating Leases		Finance Leases
2021	$	1,284	$	26
2022	4,509		103
2023	3,602		103
2024	2,501		83
2025	1,852		55
Thereafter	822		50
Total lease payments (1)	$	14,570	$	420
Less: imputed interest (2)	(1,617)		(59)
Total lease liabilities	$	12,953	$	361

(1) The weighted average remaining lease term is 3.6 years for operating leases and 4.4 years for finance leases.

(2) The weighted average discount rate is 6.6% for operating leases and 7.0% for finance leases.

Additionally, the Company has approximately $4.8 million of future payment obligations related to executed warehouse lease agreements that have not yet commenced as of June 30, 2021.

Supplemental disclosures of cash flow information related to leases are:

	Nine Months Ended June 30,
(in thousands)	2021		2020
Cash paid for amounts included in operating lease liabilities	$	3,225	$	3,642
Cash paid for amounts included in finance lease liabilities	35		26
Non-cash: lease liabilities arising from new operating lease assets obtained (1)	885		12,188
Non-cash: lease liabilities arising from new finance lease assets obtained	130		10
Non-cash: adjustments to lease assets and liabilities	3,705		1,592

(1) Nine months ended June 30, 2020 amount includes $12.2 million of lease liabilities recognized upon the adoption of ASC 842 on October 1, 2019.