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LEASES | 3 Months Ended
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Dec. 31, 2019
LEASES |
LEASES | 16. LEASES As described in Note 3, effective October 1, 2019, the Company adopted ASC 842, Leases. The Company determines at lease inception whether an arrangement that provides control over the use of an asset is a lease. The Company recognizes at lease commencement a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term. The Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. Certain of the Company’s leases include options to extend the term of the lease for up to 20 years. When it is reasonably certain that the Company will exercise the option, Management includes the impact of the option in the lease term for purposes of determining total future lease payments. As most of the Company’s lease agreements do not explicitly state the discount rate implicit in the lease, Management uses the Company’s incremental borrowing rate on the commencement date to calculate the present value of future payments based on the tenor of each arrangement. The Company’s leases for real estate commonly include escalating payments. These variable lease payments are included in the calculation of the ROU asset and lease liability. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. Non-lease components are excluded from our ROU assets and lease liabilities and expensed as incurred. The Company’s leases are for office space, manufacturing facilities, and machinery and equipment. The components of lease costs are shown below: ​
​ | ​ | ​ | ​
​ |  | Three Months
​ | ​ | Ended
​ | ​ | December 31,
(Dollars in thousands) |  | 2019
Finance lease cost |  | ​ |
Amortization of right-of-use assets | ​ | $ | 622
Interest on lease liabilities | ​ |  | 328
Operating lease cost | ​ |  | 1,419
Total lease costs | ​ | $ | 2,369
​ Additional information related to leases are shown below: ​
​ | ​ | ​ | ​ | ​
​ |  | Three Months |
​ | ​ | Ended |
​ | ​ | December 31, |
(Dollars in thousands) |  | 2019 |
Cash paid for amounts included in the measurement of lease liabilities |  | ​ |  | ​
Operating cash flows from operating leases | ​ | $ | 1,408 | ​
Operating cash flows from finance leases | ​ |  | 138 | ​
Financing cash flows from finance leases | ​ |  | 351 | ​
Right-of-use assets obtained in exchange for lease liabilities | ​ |  |  | ​
Operating leases | ​ | $ | 22,014 | ​
Weighted-average remaining lease term | ​ |  |  | ​
Operating leases | ​ |  | 6.51 years | ​
Finance leases | ​ |  | 13.16 years | ​
Weighted-average discount rate | ​ |  |  | ​
Operating leases | ​ |  | 3.14 | %
Finance leases | ​ |  | 4.28 | %
​ The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on our Consolidated Balance Sheet on December 31, 2019: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) | ​ |  | Operating |  | Finance
Years Ending September 30: |  | Leases |  | Leases
2020 (excluding the three months ended December 31, 2019) | ​ | $ | 3,887 |  | ​ | 2,029
2021 | ​ |  | 4,451 |  | ​ | 2,930
2022 | ​ |  | 3,787 |  | ​ | 3,011
2023 | ​ |  | 2,968 |  | ​ | 3,094
2024 and thereafter | ​ |  | 7,808 |  | ​ | 31,481
Total minimum lease payments | ​ |  | 22,901 |  | ​ | 42,545
Less: amounts representing interest | ​ |  | 2,321 |  |  | 11,144
Present value of net minimum lease payments | ​ | $ | 20,580 |  | ​ | 31,401
Less: current portion of lease obligations | ​ |  | 4,571 |  | ​ | 1,866
Non-current portion of lease obligations | ​ |  | 16,009 |  | ​ | 29,535
ROU assets | ​ | $ | 20,209 |  | ​ | 28,619
​ Operating lease liabilities are included in the Consolidated Balance Sheet in accrued other expenses and operating lease liabilities. Finance lease liabilities are included in accrued other expenses and other liabilities. Operating lease ROU assets are included as a caption on the Consolidated Balance Sheet and finance lease ROU assets are included in Property, plant and equipment on the Consolidated Balance sheets. As the Company has not restated prior-year information for the adoption of ASC 842, the following presents the Company’s future minimum lease payments for operating and capital leases under ASC 840 for continuing operations as of September 30, 2019: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | Operating |  | Finance
Years Ending September 30: |  | Leases |  | Leases
2020 | ​ | $ | 5,574 |  | ​ | 2,518
2021 | ​ |  | 4,558 |  | ​ | 2,930
2022 | ​ |  | 3,950 |  | ​ | 3,012
2023 | ​ |  | 3,270 |  | ​ | 3,094
2024 and thereafter | ​ |  | 8,443 |  | ​ | 31,499
Total minimum lease payments | ​ | $ | 25,795 |  | ​ | 43,053
Less: amounts representing interest | ​ |  | * |  | ​ | 11,241
Present value of net minimum lease payments | ​ |  | * |  | ​ | 31,812
Less: Current portion of lease obligations | ​ |  | * |  | ​ | 1,832
Non-current portion of lease obligations | ​ |  | * |  | ​ | 29,980
​ | ​ |  |  |  | ​ |
​ | ​ | ​ | ​ | ​ | ​ | ​
* Not applicable for operating leases

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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