Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.4
Leases
3 Months Ended
Dec. 31, 2022
Leases  
Leases

6. Leases

 

The Company occasionally acquires equipment under finance leases including hardware and software used by our IT department to improve security and capacity, vehicles used by our Industrial Segment, and certain furniture for our offices. Terms for these leases generally range from two to six years.

 

Supplemental cash flow information related to finance leases consisted of the following:

 

 

 

Three Months Ended

December 31,

 

 

 

2022

 

 

2021

 

Cash paid for finance lease liabilities

 

$ 79

 

 

$ 36

 

Acquisition of equipment with finance lease

 

 

-

 

 

 

320

 

 

Supplemental balance sheet information related to finance leases consisted of the following:

 

 

 

December 31,

2022

 

 

September 30,

2022

 

Weighted average remaining lease term for finance leases

 

3.2 years

 

 

3.3 years

 

Weighted average discount rate for finance leases

 

 

7.1%

 

 

7.3%

 

The table below reconciles the undiscounted future minimum lease payments under non-cancelable finance lease agreements to the total finance lease liabilities recognized on the unaudited condensed consolidated balance sheets, included in other current liabilities and other long-term liabilities, as of December 31, 2022:

 

Remainder of Fiscal 2023

 

$ 171

 

Fiscal 2024

 

 

167

 

Fiscal 2025

 

 

108

 

Fiscal 2026

 

 

105

 

Fiscal 2027

 

 

21

 

Less: Imputed interest

 

 

(59)

Present value of finance lease liabilities (a)

 

$ 513

 

 

(a)

Includes current portion of $189 for finance leases.

 

The Company leases space for all its branch offices, which are generally located either in downtown or suburban business centers, and for its corporate headquarters. Branch offices are generally leased over periods ranging from three to five years. The corporate office lease expires in 2026. The Company’s leases generally provide for payment of basic rent plus a share of building real estate taxes, maintenance costs and utilities.

 

Operating lease expenses were $588 and $534 for the three-month periods ended December 31, 2022 and 2021, respectively.

Supplemental cash flow information related to operating leases consisted of the following:

 

 

 

Three Months Ended December 31,

 

 

 

2022

 

 

2021

 

Cash paid for operating lease liabilities

 

$ 473

 

 

$ 484

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

 

518

 

 

 

19

 

 

Supplemental balance sheet information related to operating leases consisted of the following:

 

 

 

December 31,

2022

 

 

September 30,

2022

 

Weighted average remaining lease term for operating leases

 

2.0 years

 

 

1.8 years

 

Weighted average discount rate for operating leases

 

 

5.8%

 

 

5.9%

 

The table below reconciles the undiscounted future minimum lease payments under non-cancelable lease agreements having initial terms in excess of one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheet as of December 31, 2022, including certain closed offices are as follows:

 

Remainder of Fiscal 2023

 

$ 1,100

 

Fiscal 2024

 

 

1,294

 

Fiscal 2025

 

 

727

 

Fiscal 2026

 

 

306

 

Fiscal 2027

 

 

66

 

Less: Imputed interest

 

 

(144)

Present value of operating lease liabilities (a)

 

$ 3,349

 

 

(a)

Includes current portion of $1,303 for operating leases.