Annual report pursuant to Section 13 and 15(d)

Leases

v3.22.2.2
Leases
 12 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases Leases
The Company leases certain facilities, office space, vehicles and equipment. As of September 30, 2022, operating leases under Topic 842 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 $14.0 million, $2.2 million and $12.1 million, respectively. As of September 30, 2022, the Company did not have any lease contracts that had not yet commenced but had created significant rights and obligations.

The components of lease expense were as follows (in thousands):

For the Fiscal Year Ended September 30,
2022 2021 2020
Operating lease cost $ 2,568  $ 2,475  $ 3,498 
Short-term lease cost 21,177  13,346  13,374 
Total lease expense 23,745  15,821  16,872 

Short-term leases (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 our 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.

As of September 30, 2022, the weighted-average remaining term of the Company’s operating leases was 8.5 years, and the weighted-average discount rate was 3.19%. As of September 30, 2022, 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 September 30, 2022 (in thousands):
Fiscal Year Amount
2023 $ 2,621 
2024 2,213 
2025 1,833 
2026 1,816 
2027 1,709 
Thereafter 6,304 
Total future minimum lease payments $ 16,496 
Less: imputed interest 2,228 
Total $ 14,268