Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Leases Leases
The Company leases certain facilities, office space, vehicles and equipment. As of March 31, 2021, operating leases under ASC Topic 842, Leases, were included in (i) operating lease right-of use assets, (ii) current portion of operating lease liabilities and (iii) operating lease liabilities, net of current portion on the Company’s Consolidated Balance Sheets in the amounts of $6.8 million, $1.7 million and $5.3 million, respectively. As of March 31, 2021, the Company had no lease contracts that had not yet commenced but had created significant rights and obligations.

The components of lease expense were as follows for the periods presented (in thousands):

For the Three Months Ended March 31,
2021 2020
(unaudited) (unaudited)
Operating lease cost $ 553  $ 914 
Short-term lease cost 2,635  3,644 
Total lease expense $ 3,188  $ 4,558 

For the Six Months Ended March 31,
2021 2020
(unaudited) (unaudited)
Operating lease cost $ 1,353  $ 1,777 
Short-term lease cost 5,125  7,363 
Total lease expense $ 6,478  $ 9,140 

Short-term leases (i.e., those with terms of 12 months or less) are not capitalized but are expensed on a straight-line basis over the lease term. The majority of the Company's short-term leases relate to equipment used on construction projects. These leases are entered into
at periodic rental rates for an unspecified duration and typically have a termination for convenience provision. Short-term lease cost includes leases with terms of one month or less.

As of March 31, 2021, the weighted-average remaining term of the Company’s leases was 9.3 years, and the weighted-average discount rate was 3.96%. As of March 31, 2021, the lease liability was equal to the present value of the remaining lease payments, discounted using the incremental borrowing rate on the Company’s secured debt using a single maturity discount rate, as such rate is not materially different from the discount rate applied to each of the leases in the portfolio.

The following table summarizes the Company’s undiscounted lease liabilities outstanding as of March 31, 2021 (in thousands):

Fiscal Year Amount (unaudited)
Remainder of 2021 $ 1,008 
2022 1,368 
2023 930 
2024 827 
2025 663 
2026 and thereafter 3,698 
Total future minimum lease payments $ 8,494 
Less: imputed interest 1,523 
Total $ 6,971 

The Company has lease agreements associated with quarry facilities under which the Company makes royalty payments. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue was $0.2 million for the three months ended March 31, 2021 and 2020 and $0.4 million for the six months ended March 31, 2021 and 2020.