LEASES

12 Months Ended

Sep. 30, 2021

NOTE 5 LEASES

Lease Position


(in thousands)	September 30, 2021		September 30, 2020
Operating lease commitments, including probable extensions1	$	56,667	$	48,695

Discounted using the lessee's incremental borrowing rate at the date of initial application	$	52,372	$	46,706
(Less): short-term leases recognized on a straight-line basis as expense	$	(1,761)	(1,456)
(Less): Low value lease contracts	$	(123)	—
Lease liability recognized	$	50,488	$	45,250

Of which:
Current lease liabilities	$	12,624	$	11,364
Non-current lease liabilities	$	37,864	33,886

(1)Our future minimal rental payments exclude optional extensions that have not been exercised but are probable to be exercised in the future, those probable extensions are included in the operating lease liability balance.

The recognized right-of-use assets relate to the following types of assets:


(in thousands)	September 30, 2021		September 30, 2020
Properties	$	48,176	$	42,448
Equipment	935		1,394
Other	76		741
Total right-of-use assets	$	49,187	$	44,583

Lease Costs

The following table presents certain information related to the lease costs for our operating leases:


	Year ended September 30,
(in thousands)	2021		2020
Operating lease cost	$	13,686	$	16,953
Short-term lease cost	$	3,580	1,693
Total lease cost	$	17,266	$	18,646

Lease Terms and Discount Rates

The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases as of September 30, 2021.


	September 30, 2021		September 30, 2020
Weighted average remaining lease term	6.7		4.9
Weighted average discount rate	2.5	%	2.7	%

Lease Obligations

Future minimum rental payments required under operating leases having initial or remaining non-cancelable lease terms in excess of one year at September 30, 2021 (in thousands) are as follows:


Fiscal Year	Amount
2022	$	10,596
2023	8,660
2024	7,391
2025	4,332
2026	1,876
Thereafter	7,008
Total1	$	39,863

Total rent expense was $17.3 million, $18.6 million and $15.5 million for the fiscal years ended September 30, 2021, 2020 and 2019, respectively. The future minimum lease payments for our Tulsa corporate office and our Tulsa industrial facility represent a material portion of the amounts shown in the table above. The lease agreement for our Tulsa corporate office commenced on May 30, 2003 and has subsequently been amended, most recently on April 1, 2021. The agreement will expire on January 31, 2025; however, we have two five-year renewal options, which were not recognized as part of our right-of-use assets and lease liabilities. The lease agreement for our Tulsa industrial facility, where we perform maintenance and assembly of FlexRig® components commenced on December 21, 2018 and will expire on June 30, 2025; however, we have two two-year renewal options which were recognized as part of our right-of-use assets and lease liabilities.

During the fiscal year ended September 30, 2021, we downsized and relocated our Houston assembly facility to a new location. Refer to Note 18—Restructuring Charges for additional details. As a result, and during fiscal year 2021, we entered into a lease agreement for a new assembly facility located in Galena Park, Texas. This lease agreement commenced on January 1, 2021 and will expire on December 31, 2030; however, we have one unpriced renewal option for a minimum of five years and a maximum of 10 years, which was not recognized as part of our right-of-use assets and lease liabilities. This contract was accounted for as an operating lease resulting in an operating lease right-of-use asset of $16.0 million and minimum lease liability of $16.2 million as of September 30, 2021.