Leases

9 Months Ended

Jun. 30, 2022

The Company leases certain facilities and equipment under operating leases. In relation to an acquisition that was completed on October 18, 2021 (see Note 4), the Company entered into leases with third parties for certain clubs where the real estate locations were not part of the acquisition.

Total lease expense included in selling, general and administrative expenses in our unaudited condensed consolidated statements of income for the three and nine months ended June 30, 2022 and 2021 is as follows (in thousands):


	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021		Nine Months Ended June 30, 2022			Nine Months Ended June 30, 2021
Operating lease expense – fixed payments	$	1,215	$	828	$	3,482		$	2,485
Variable lease expense	404		47		971			155
Short-term and other lease expense (includes $53 and $73 recorded in advertising and marketing for the three months ended June 30, 2022 and 2021, respectively, and $183 and $232 for the nine months ended June 30, 2022 and 2021, respectively; and $120 and $106 recorded in repairs and maintenance for the three months ended June 30, 2022 and 2021, respectively, and $310 and $310 for the nine months ended June 30, 2022 and 2021, respectively; see Note 6)	290		296		988			843
Sublease income	(1)		(2)		(4)			(5)
Total lease expense, net	$	1,908	$	1,169	$	5,437		$	3,478

Other information:
Operating cash outflows from operating leases	$	1,855	$	1,147	$	5,294		$	3,400
Weighted average remaining lease term – operating leases					11 years			12 years
Weighted average discount rate – operating leases					5.6		%	6.0		%

Future maturities of operating lease liabilities as of June 30, 2022 are as follows (in thousands):


	Principal Payments		Interest Payments		Total Payments
July 2022 - June 2023	$	2,730	$	2,141	$	4,871
July 2023 - June 2024	2,952		1,979		4,931
July 2024 - June 2025	3,194		1,808		5,002
July 2025 - June 2026	3,457		1,622		5,079
July 2026 - June 2027	3,569		1,423		4,992
Thereafter	23,547		5,571		29,118
	$	39,449	$	14,544	$	53,993