Leasing Arrangements

12 Months Ended

Sep. 30, 2020

(5)	Leasing Arrangements

The Company is party to a number of 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, current operating lease obligations and long-term operating lease obligations on the Consolidated Balance Sheet.

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. Our Consolidated Statement of Operations for fiscal 2020 reflect

lease costs for these operating leases of $

597

and $

1,286

within cost of sales and operating expenses, respectively.

The amounts charged to expense under operating leases in fiscal 2019 and 2018 total $2,372 and $2,457, respectively.

Right-of-use assets obtained during fiscal 2020 in exchange for operating lease liabilities totaled $1,600.

In addition, the Company has periodically entered into other short-term operating leases, generally with an initial term of twelve months or less. These leases are not recorded on the balance sheet and the related lease expense is immaterial for fiscal 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 weighted average remaining lease term for our operating leases as of September 30, 2020 was 4.2 years.

The discount rate implicit within our leases is generally not determinable and, therefore, the Company determines the discount rate using its incremental borrowing rate. The weighted average discount rate used to measure our operating leases as of September 30, 2020 was 3.7%.

Maturities of lease liabilities by fiscal year for the Company’s operating lease liabilities were as follows as of

September

30, 2020:


	September 30, 2020
	September 30, 2020
2021	$	2,002
2022		1,744
2023		1,271
2024		978
2025		691
Thereafter		282

Total lease payments		6,968
Less amount of lease payment representing interest		(501	)

Total present value of lease payments	$	6,467

As of September 30, 2019, future minimum lease payments under noncancelable operating leases were as follows:


	September 30, 2019
	September 30, 2019
2020	$	1,528
2021		1,451
2022		1,293
2023		967
2024		712
Thereafter		616

Total	$	6,567

Supplemental Cash Flow Information (Cash Paid for Amounts Included in Measurement of Lease Liabilities)

Operating cash flows from operating lease payments totaled $1,693 in fiscal 2020.