LEASES

12 Months Ended

Sep. 30, 2023

NOTE 4 LEASES

Lease Position


(in thousands)	September 30, 2023		September 30, 2022
Operating lease commitments, including probable extensions1	$	65,970	$	44,769

Discounted using the lessee's incremental borrowing rate	$	55,894	$	41,002
(Less): short-term leases recognized on a straight-line basis as expense	(877)		(1,052)
(Less): other	(207)		(218)
Lease liability recognized	$	54,810	$	39,732

Of which:
Current lease liabilities	$	13,772	$	12,382
Non-current lease liabilities	41,038		27,350

(1)Our future minimal rental payments exclude optional extensions that have not been exercised but are probable to be exercised in the future, those probable extensions are included in the operating lease liability balance.

The recognized right-of-use assets relate to the following types of assets:


(in thousands)	September 30, 2023		September 30, 2022
Properties	$	50,080	$	38,925
Equipment	318		125
Other	2		14
Total right-of-use assets	$	50,400	$	39,064

Lease Costs

The following table presents certain information related to the lease costs for our operating leases:


	Year ended September 30,
(in thousands)	2023		2022
Operating lease cost	$	11,004	$	9,687
Short-term lease cost	1,437		1,546
Total lease cost	$	12,441	$	11,233

Lease Terms and Discount Rates

The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases:


	September 30, 2023		September 30, 2022
Weighted average remaining lease term	7.6		5.9
Weighted average discount rate	3.6	%	2.5	%

Lease Obligations

Total rent expense was $12.4 million, $11.2 million and $17.3 million for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.

Future minimum rental payments required under operating leases having initial or remaining non-cancelable lease terms in excess of one year at September 30, 2023 (in thousands) are as follows:


Fiscal Year	Amount
2024	$	10,534
2025	7,552
2026	5,390
2027	5,055
2028	4,499
Thereafter	21,391
Total1	$	54,421

During the fiscal year ended September 30, 2023, we entered into a lease agreement to relocate our Tulsa corporate headquarters to a new office space. This lease commenced during the fourth fiscal quarter of 2023 and resulted in a $17.6 million increase to right-of-use assets and lease liability on our Consolidated Balance Sheets. In addition, we began amortizing the right of use asset over the initial lease term of approximately 12 years. We also have two unpriced five-year extension options that were not recognized as part of the right-of-use asset and lease liability. The future minimum lease payments for the new office space represent a material portion of the amounts shown in the table above.

Additionally, the future minimum lease payments for our legacy Tulsa corporate office and our Tulsa industrial facility represent a material portion of the amounts shown in the table above. The lease agreement for our legacy Tulsa corporate office commenced on May 30, 2003 and was subsequently amended, most recently on April 1, 2021. The agreement will expire on January 31, 2025; however, we have two five-year renewal options that will not be exercised, thus were not recognized as part of our right-of-use assets and lease liabilities. The lease agreement for our Tulsa industrial facility, where we perform maintenance and assembly of FlexRig® components, commenced on December 21, 2018 and will expire on June 30, 2025; however, we have two two-year renewal options which were recognized as part of our right-of-use assets and lease liabilities.