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Leases

3 Months Ended

Dec. 31, 2020

12. Leases

The Company leases certain facilities and equipment under operating leases. Total lease expense, under ASC 842, was included in selling, general and administrative expenses in our unaudited condensed consolidated statement of income, except for sublease income which was included in other revenue, for the three months ended December 31, 2020 and 2019 as follows (in thousands):

Schedule of Lease Expense

	Three Months Ended December 31, 2020			Three Months Ended December 31, 2019
Operating lease expense – fixed payments	$	829		$	842
Variable lease expense		64			65
Short-term equipment and other lease expense (includes $57 and $146 recorded in advertising and marketing, and $88 and $125 recorded in repairs and maintenance for the three months ended December 31, 2020 and 2019, respectively; see Note 5)		229			394
Sublease income		(2	)		(2	)
Total lease expense, net	$	1,120		$	1,299

Other information:
Operating cash outflows from operating leases	$	1,091		$	1,255
Weighted average remaining lease term		12 years			13 years
Weighted average discount rate		6.1	%		6.1	%

Future maturities of ASC 842 lease liabilities as of December 31, 2020 are as follows (in thousands):

	Principal Payments		Interest Payments		Total Payments
January - December 2021	$	1,658	$	1,569	$	3,227
January - December 2022		1,756		1,465		3,221
January - December 2023		1,673		1,361		3,034
January - December 2024		1,817		1,256		3,073
January - December 2025		2,003		1,142		3,145
Thereafter		17,768		5,147		22,915
	$	26,675	$	11,940	$	38,615

Included in lease expense in our unaudited condensed consolidated statements of income (see Note 5) were lease payments for a house that the Company’s CEO rented to the Company for corporate housing for its out-of-town Bombshells management and trainers, of which lease expense totaled $19,500 for the three months ended December 31, 2019. This lease terminated on December 31, 2019.