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Leases | 9 Months Ended
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Jun. 30, 2022
Leases [Abstract] |
Leases | Note 4: Leases The Company leases retail stores, warehouse facilities, and office space. These assets and properties are generally leased under noncancelable agreements that expire at various dates through 2042 with various renewal options for additional periods. The agreements, which have been classified as operating leases, generally provide for minimum—and in some cases percentage—rent, and require us to pay all insurance, taxes, and other maintenance costs. As a result, the Company recognizes assets and liabilities for all leases with lease terms greater than 12 months. The amounts that are recognized reflect the present value of remaining lease payments for all leases. The discount rate used is an estimate of the Company’s blended incremental borrowing rate, based on information available associated with each subsidiary’s debt outstanding at lease commencement. In considering the lease asset value, the Company considers fixed and variable payment terms, prepayments, and options to extend, terminate, or purchase. Renewal, termination, or purchase options only affect the lease term used for determining lease asset value if the option is reasonably certain to be exercised. As discussed in Note 3 above, on June 28, 2022, Precision acquired all of the capital stock of Kinetic and certain Real Estate assets used in its operations. As of the date of execution of the Real Estate purchase, Precision sold the Real Estate, in exchange for which Precision entered into a 20-year lease, with two options to renew for an additional five years each. This transaction is being treated as a sales and leaseback arrangement for accounting purposes, as described in ASC 842 “Leases”. As of June 30, 2022, the weighted average remaining lease term is 16.9 years and our weighted average discount rate is 5.82%. Total cash payments for the nine months ended June 30, 2022 and 2021 were approximately $7.2 million and $2.1 million, respectively. Additionally, we obtained right-of-use assets in exchange for lease liabilities of approximately $7.6 million and $8.6 million upon commencement of finance and operating leases, respectively, during the nine months ended June 30, 2022. The following table details our right of use assets and lease liabilities as of June 30, 2022 and September 30, 2021 (in $000’s):
|  | June 30, 2022 |  | September 30, 2021 |
Right of use asset - operating leases |  | $ | 31,487 |  | $ | 30,466 |
Lease liabilities: |  |  |  |  |
Current - operating |  |  | 7,293 |  |  | 7,202 |
Current - finance |  |  | 376 |  |  | — |
Long term - operating |  |  | 31,014 |  |  | 29,343 |
Long term - finance |  |  | 7,803 |  |  | — |
Total present value of future lease payments as of June 30, 2022 (in $000’s):
Twelve months ended June 30, |  |  |
2023 |  | $ | 9,883 |
2024 |  |  | 8,171 |
2025 |  |  | 6,322 |
2026 |  |  | 4,738 |
2027 |  |  | 3,838 |
Thereafter |  |  | 40,548 |
Total |  |  | 73,500 |
Less implied interest |  |  | (27,014 | )
Present value of payments |  | $ | 46,486 |
During the nine months ended June 30, 2022 and 2021, the Company recorded no gain or loss settlements, no r did it record impairment charges relating to any of its leases.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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