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Leases | 12 Months Ended
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Sep. 30, 2022
Leases [Abstract] |
Leases | NOTE 12: LEASES The table below presents balances of our lease assets and liabilities and there balance sheet locations for both operating and financing leases:
(in thousands) | Balance Sheet Location | September 30, 2022 |  | September 30, 2021
Lease assets: |  |  |  |
Operating lease right-of-use assets | Right-of-use assets, net | $ | 221,405 |  |  | $ | 200,990 |
Financing lease assets | Right-of-use assets, net | 181 |  |  | — |
Total lease assets |  | $ | 221,586 |  |  | $ | 200,990 |
Lease liabilities: |  |  |  |
Current: |  |  |  |
Operating lease liabilities | Operating lease liabilities, current | $ | 52,334 |  |  | $ | 52,263 |
Financing lease liabilities | Accounts payable, accrued expenses and other current liabilities | 37 |  |  | — |
Total current lease liabilities |  | 52,371 |  |  | 52,263 |
Non-current: |  |  |  |
Operating Lease liabilities | Operating lease liabilities | 180,756 |  |  | 161,330 |
Financing lease liabilities | Other long-term liabilities | 148 |  |  | — |
Total non-current lease liabilities |  | 180,904 |  |  | 161,330 |
Total lease liabilities |  | $ | 233,275 |  |  | $ | 213,593 |
The table below provides major components of our lease costs:
| Fiscal Year Ended September 30,
(in thousands) | 2022 |  | 2021 |  |
Operating lease cost: |  |  |  |  |
Operating lease cost * | $ | 67,414 |  |  | $ | 61,980 |  |  |
Variable lease cost | 15,229 |  |  | 13,000 |  |  |
Total operating lease cost | 82,643 |  |  | $ | 74,980 |  |  |
Financing lease cost: |  |  |  |  |
Amortization of financing lease assets | 3 |  |  | — |  |  |
Interest on financing lease liabilities | 1 |  |  | — |  |  |
Total financing lease cost | 4 |  |  | — |  |  |
Total lease cost | $ | 82,647 |  |  | $ | 74,980 |  |  |
* Includes a reduction for sublease rental income of $3.6 million and $3.4 million for fiscal years ending September 2022 and 2021, respectively. Lease expense is recognized on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in “Store expenses” and “General and administrative” expense, based on the underlying lease use. Cash paid for operating leases are $72.3 million and $61.9 million for the fiscal years ended September 30, 2022 and 2021, respectively. The weighted- average term and discount rates for leases are as follows:
| Fiscal Year Ended September 30,
| 2022 |  | 2021
Weighted-average remaining lease term (years): |  |  |
Operating leases | 5.12 |  | 5.08
Financing leases | 4.10 |  | —
Weighted-average discount rate: |  |  |
Operating leases | 8.32 | % |  | 5.92 | %
Financing leases | 11.14 | % |  | — | %
As of September 30, 2022, maturities of lease liabilities under ASC 842 by fiscal year were as follows (in thousands):
| Operating Leases |  | Financing Leases
Fiscal 2023 | $ | 69,106 |  |  | $ | 63 |
Fiscal 2024 | 59,734 |  |  | 56 |
Fiscal 2025 | 49,924 |  |  | 56 |
Fiscal 2026 | 39,621 |  |  | 55 |
Fiscal 2027 | 27,107 |  |  | 5 |
Thereafter | 40,681 |  |  | — |
Total lease liabilities | 286,173 |  |  | 235 |
Less: portion representing Imputed interest | 53,083 |  |  | 50 |
Total net lease liabilities | 233,090 |  |  | 185 |
Less: current portion | 52,334 |  |  | 37 |
Total long term net lease liabilities | $ | 180,756 |  |  | $ | 148 |
In December 2014, we entered into a non-cancelable 13-year operating lease for our corporate offices, with rent payments beginning February 2016 and ending March 2029. Annual rent, net of square footage subsequently terminated as a result of negotiations with the landlord, escalate from $2.5 million at lease inception to $3.9 million in the terminal year of the lease. The lease includes two five-year extension options at the end of the initial lease term. The estimated minimum future rental payments under the lease are approximately $24.4 million as of September 30, 2022. During fiscal 2017 and 2016, we initiated subleases for a portion of our corporate operating office lease for estimated minimum future sublease payments of approximately $12.2 million. In addition to the above subleases, during fiscal 2018 we entered into an amendment to the operating lease surrendering another 15% of the initial leased premises. As a result, sublease payments were expected to fully offset our original operating lease obligations through August 2022, with renewal options available until the end of the master operating lease in March 2029. During the second quarter of fiscal 2015, we entered into cancellable subleases for our Miami office for an estimated minimum future sublease payment of approximately $2.9 million. Sublease payments are expected to offset substantially all of our original operating lease obligations over the nine-year period beginning March 2015 and ending September 2024. During the fourth quarter of fiscal 2022, the Miami office lease and sublease were terminated with no fees, and the deposit to the subtenant was returned. As a result of the COVID-19 pandemic, we believe there was a significant adverse change in the business climate that impacted the office leasing market and a significant decrease in the market prices of an asset or asset group that affected the value of the right of use asset for our corporate office. We determined the undiscounted cash flows of the subleases did not exceed the net book value of the right of use asset. We then determined the discounted cash flows of the subleases did not exceed the book value of the right of use asset, and an impairment charge of $5.0 million was recorded in fiscal year 2020 to “Impairment of goodwill, intangible and other assets” in the Consolidated Statements of Operations. We recorded $69.4 million and $62.8 million in non-cash additions to our right of use assets and lease liabilities for the fiscal year ended September 30, 2022 and 2021, respectively.
Leases | NOTE 12: LEASES The table below presents balances of our lease assets and liabilities and there balance sheet locations for both operating and financing leases:
(in thousands) | Balance Sheet Location | September 30, 2022 |  | September 30, 2021
Lease assets: |  |  |  |
Operating lease right-of-use assets | Right-of-use assets, net | $ | 221,405 |  |  | $ | 200,990 |
Financing lease assets | Right-of-use assets, net | 181 |  |  | — |
Total lease assets |  | $ | 221,586 |  |  | $ | 200,990 |
Lease liabilities: |  |  |  |
Current: |  |  |  |
Operating lease liabilities | Operating lease liabilities, current | $ | 52,334 |  |  | $ | 52,263 |
Financing lease liabilities | Accounts payable, accrued expenses and other current liabilities | 37 |  |  | — |
Total current lease liabilities |  | 52,371 |  |  | 52,263 |
Non-current: |  |  |  |
Operating Lease liabilities | Operating lease liabilities | 180,756 |  |  | 161,330 |
Financing lease liabilities | Other long-term liabilities | 148 |  |  | — |
Total non-current lease liabilities |  | 180,904 |  |  | 161,330 |
Total lease liabilities |  | $ | 233,275 |  |  | $ | 213,593 |
The table below provides major components of our lease costs:
| Fiscal Year Ended September 30,
(in thousands) | 2022 |  | 2021 |  |
Operating lease cost: |  |  |  |  |
Operating lease cost * | $ | 67,414 |  |  | $ | 61,980 |  |  |
Variable lease cost | 15,229 |  |  | 13,000 |  |  |
Total operating lease cost | 82,643 |  |  | $ | 74,980 |  |  |
Financing lease cost: |  |  |  |  |
Amortization of financing lease assets | 3 |  |  | — |  |  |
Interest on financing lease liabilities | 1 |  |  | — |  |  |
Total financing lease cost | 4 |  |  | — |  |  |
Total lease cost | $ | 82,647 |  |  | $ | 74,980 |  |  |
* Includes a reduction for sublease rental income of $3.6 million and $3.4 million for fiscal years ending September 2022 and 2021, respectively. Lease expense is recognized on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in “Store expenses” and “General and administrative” expense, based on the underlying lease use. Cash paid for operating leases are $72.3 million and $61.9 million for the fiscal years ended September 30, 2022 and 2021, respectively. The weighted- average term and discount rates for leases are as follows:
| Fiscal Year Ended September 30,
| 2022 |  | 2021
Weighted-average remaining lease term (years): |  |  |
Operating leases | 5.12 |  | 5.08
Financing leases | 4.10 |  | —
Weighted-average discount rate: |  |  |
Operating leases | 8.32 | % |  | 5.92 | %
Financing leases | 11.14 | % |  | — | %
As of September 30, 2022, maturities of lease liabilities under ASC 842 by fiscal year were as follows (in thousands):
| Operating Leases |  | Financing Leases
Fiscal 2023 | $ | 69,106 |  |  | $ | 63 |
Fiscal 2024 | 59,734 |  |  | 56 |
Fiscal 2025 | 49,924 |  |  | 56 |
Fiscal 2026 | 39,621 |  |  | 55 |
Fiscal 2027 | 27,107 |  |  | 5 |
Thereafter | 40,681 |  |  | — |
Total lease liabilities | 286,173 |  |  | 235 |
Less: portion representing Imputed interest | 53,083 |  |  | 50 |
Total net lease liabilities | 233,090 |  |  | 185 |
Less: current portion | 52,334 |  |  | 37 |
Total long term net lease liabilities | $ | 180,756 |  |  | $ | 148 |
In December 2014, we entered into a non-cancelable 13-year operating lease for our corporate offices, with rent payments beginning February 2016 and ending March 2029. Annual rent, net of square footage subsequently terminated as a result of negotiations with the landlord, escalate from $2.5 million at lease inception to $3.9 million in the terminal year of the lease. The lease includes two five-year extension options at the end of the initial lease term. The estimated minimum future rental payments under the lease are approximately $24.4 million as of September 30, 2022. During fiscal 2017 and 2016, we initiated subleases for a portion of our corporate operating office lease for estimated minimum future sublease payments of approximately $12.2 million. In addition to the above subleases, during fiscal 2018 we entered into an amendment to the operating lease surrendering another 15% of the initial leased premises. As a result, sublease payments were expected to fully offset our original operating lease obligations through August 2022, with renewal options available until the end of the master operating lease in March 2029. During the second quarter of fiscal 2015, we entered into cancellable subleases for our Miami office for an estimated minimum future sublease payment of approximately $2.9 million. Sublease payments are expected to offset substantially all of our original operating lease obligations over the nine-year period beginning March 2015 and ending September 2024. During the fourth quarter of fiscal 2022, the Miami office lease and sublease were terminated with no fees, and the deposit to the subtenant was returned. As a result of the COVID-19 pandemic, we believe there was a significant adverse change in the business climate that impacted the office leasing market and a significant decrease in the market prices of an asset or asset group that affected the value of the right of use asset for our corporate office. We determined the undiscounted cash flows of the subleases did not exceed the net book value of the right of use asset. We then determined the discounted cash flows of the subleases did not exceed the book value of the right of use asset, and an impairment charge of $5.0 million was recorded in fiscal year 2020 to “Impairment of goodwill, intangible and other assets” in the Consolidated Statements of Operations. We recorded $69.4 million and $62.8 million in non-cash additions to our right of use assets and lease liabilities for the fiscal year ended September 30, 2022 and 2021, respectively.

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