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LEASES | 6 Months Ended
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Mar. 31, 2024
LEASES |
LEASES | 13. 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 | ​ | Three Months Ended
​ | ​ | March 31, | ​ | March 31,
(Dollars in thousands) |  | 2024 |  | 2023
Finance lease cost | ​ | ​ | ​ | ​ | ​ | ​
Amortization of right-of-use assets | ​ | $ | 372 | ​ | $ | 393
Interest on lease liabilities | ​ | ​ | 216 | ​ | ​ | 233
Operating lease cost | ​ | ​ | 1,874 | ​ | ​ | 1,853
Total lease costs | ​ | $ | 2,462 | ​ | $ | 2,479
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six Months Ended | ​ | Six Months Ended
​ | ​ | March 31, | ​ | ​ | March 31,
(Dollars in thousands) |  | 2024 |  | ​ | 2023
Finance lease cost | ​ | ​ | ​ | ​ | ​ | ​
Amortization of right-of-use assets | ​ | $ | 765 | ​ | $ | 786
Interest on lease liabilities | ​ |  | 439 | ​ | ​ | 469
Operating lease cost | ​ |  | 3,738 | ​ | ​ | 3,498
Total lease costs | ​ | $ | 4,942 | ​ | $ | 4,753
​ Additional information related to leases are shown below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Three Months Ended
​ | ​ | March 31, | ​ | March 31,
(Dollars in thousands) |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities | ​ | ​ | ​ | ​ | ​ | ​
Operating cash flows from operating leases | ​ | $ | 1,824 | ​ | $ | 1,779
Operating cash flows from finance leases | ​ | ​ | 216 | ​ | ​ | 233
Financing cash flows from finance leases | ​ | ​ | 328 | ​ | ​ | 330
Right-of-use assets obtained in exchange for operating lease liabilities | ​ | ​ | 1,679 | ​ | ​ | 618
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Six Months Ended |  | Six Months Ended
​ | ​ | March 31, | ​ | March 31,
(Dollars in thousands) | ​ | 2024 | ​ | 2023
Cash paid for amounts included in the measurement of lease liabilities |  | ​ |  |  | ​ |
Operating cash flows from operating leases | ​ | $ | 3,643 | ​ | $ | 3,380
Operating cash flows from finance leases | ​ |  | 439 | ​ |  | 469
Financing cash flows from finance leases | ​ |  | 683 | ​ |  | 658
Right-of-use assets obtained in exchange for operating lease liabilities | ​ |  | 1,679 | ​ |  | 14,582
​
​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, 2024 |  | March 31, 2023 | ​
Weighted-average remaining lease term | ​ |  | ​ |  | ​
Operating leases |  | 10.8 | years | 11.5 | years
Finance leases |  | 11.1 | years | 11.5 | years
Weighted-average discount rate |  |  |  |  |
Operating leases |  | 4.55 | % | 4.40 | %
Finance leases |  | 4.68 | % | 4.61 | %
​ 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 March 31, 2024: ​
​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) | ​ | Operating |  | Finance
Years Ending September 30: |  | Leases |  | Leases
2024 (excluding the six months ended March 31, 2024) | ​ | $ | 3,389 | ​ | 1,090
2025 | ​ | ​ | 6,014 | ​ | 2,233
2026 | ​ | ​ | 4,729 | ​ | 2,297
2027 | ​ | ​ | 4,479 | ​ | 2,357
2028 and thereafter | ​ | ​ | 33,206 | ​ | 16,470
Total minimum lease payments | ​ | ​ | 51,817 | ​ | 24,447
Less: amounts representing interest | ​ | ​ | 11,540 | ​ | 5,795
Present value of net minimum lease payments | ​ | $ | 40,277 | ​ | 18,652
Less: current portion of lease obligations | ​ | ​ | 4,833 | ​ | 1,375
Non-current portion of lease obligations | ​ | ​ | 35,444 | ​ | 17,277
​ | ​ | ​ | ​ | ​ | ​
ROU assets | ​ | $ | 38,322 | ​ | 14,427
​ Operating lease liabilities are included in the Consolidated Balance Sheet in accrued other expenses (current portion) and as a caption on the Consolidated Balance Sheet (long-term portion). Finance lease liabilities are included on the Consolidated Balance Sheet in accrued other expenses (current portion) and other liabilities (long-term portion). 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 sheet.

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