Quarterly report pursuant to Section 13 or 15(d)

Commitments

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Commitments
 6 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments Commitments
Letters of Credit
Under the Revolving Credit Facility, the Company has a total capacity of $225.0 million that may be used for a combination of cash borrowings and letter of credit issuances. At March 31, 2022, the Company had aggregate letters of credit outstanding in the amount of $11.3 million, primarily related to certain insurance policies.
Purchase Commitments
As of March 31, 2022, the Company had unconditional purchase commitments for diesel fuel and natural gas in the normal course of business in the aggregate amount of $5.6 million and $2.1 million, respectively. Management does not expect any significant changes in the market value of these goods during the commitment period that would have a material adverse effect on the financial condition, results of operations and cash flows of the Company. As of March 31, 2022, our purchase commitments annually thereafter are as follows (in thousands):
Fiscal Year Amount
Remainder of 2022 $ 3,164 
2023 3,781 
2024 780 
Total $ 7,725 
Minimum Royalties

The Company has lease agreements associated with aggregates facilities under which the Company makes royalty payments. These agreements are outside the scope of Topic 842. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. The Company has commitments in the form of minimum royalties as of March 31, 2022 in the amount of $2.6 million, due as follows (in thousands):

Fiscal Year Amount
Remainder of 2022 $ 89 
2023 230 
2024 220 
2025 184 
2026 157 
Thereafter 1,760 
Total $ 2,640 

Royalty expense recorded in cost of revenue was $0.5 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively, and $0.8 million and $0.5 million for the six months ended March 31, 2022 and 2021, respectively.