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LEASES | 12 Months Ended
--- | ---
Sep. 30, 2025
Leases [Abstract] |
LEASES | LEASES The Company recognizes right-of-use ("ROU") assets and lease liabilities on the balance sheet, with the exception of leases with a term of twelve months or less. The Company determines if an arrangement is a lease at inception. The ROU assets and short and long-term liabilities associated with our Operating leases are shown as separate line items on our Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, net, accrued liabilities, and other liabilities on our Consolidated Balance Sheets. The Company's finance leases are immaterial. ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments primarily include rent and insurance costs (lease components). The Company's leases also include non-lease components such as real estate taxes and common-area maintenance costs. The Company elected the practical expedient to account for lease and non-lease components as a single component. In certain of the Company's leases, the non-lease components are variable and in accordance with the standard are therefore excluded from lease payments to determine the ROU asset. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases and impaired operating leases, the ROU asset is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less (a "Short-term" lease), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Consolidated Balance Sheets. Variable lease cost for both operating and finance leases, if any, is recognized as incurred. Components of operating lease costs are as follows:
| For the Year Ended September 30,
| 2025 | 2024 | 2023
Fixed | $ | 46,995 |  | $ | 46,575 |  | $ | 45,993 |
Variable (a), (b) | 10,580 |  | 9,772 |  | 10,654 |
Short-term (b) | 5,163 |  | 4,997 |  | 7,717 |
Total | $ | 62,738 |  | $ | 61,344 |  | $ | 64,364 |
(a) Primarily related to common-area maintenance and property taxes. (b) Not recorded on the balance sheet. Supplemental cash flow information were as follows:
| For the Year Ended September 30,
| 2025 | 2024 | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 43,496 |  | $ | 45,439 |  | $ | 41,533 |
Financing cash flows from finance leases | 154 |  | 291 |  | 2,164 |
Total | $ | 43,650 |  | $ | 45,730 |  | $ | 43,697 |
Supplemental Consolidated Balance Sheet information related to leases were as follows:
| As of September 30,
| 2025 | 2024
Operating Leases: |  |
Right of use assets: |  |
Operating right-of-use assets | $ | 167,829 |  | $ | 171,211 |
Lease Liabilities: |  |
Current portion of operating lease liabilities | $ | 32,307 |  | $ | 35,065 |
Long-term operating lease liabilities | 147,203 |  | 147,369 |
Total operating lease liabilities | $ | 179,510 |  | $ | 182,434 |
Finance Leases: |  |
Right of use assets: |  |
Property, plant and equipment, net(1) | $ | 430 |  | $ | 808 |
Lease Liabilities: |  |
Notes payable and current portion of long-term debt | $ | 102 |  | $ | 155 |
Long-term debt, net | 149 |  | 255 |
Total financing lease liabilities | $ | 251 |  | $ | 410 |
(1) For the years ended September 30, 2025 and 2024, finance lease assets are recorded net of accumulated depreciation of $1,399 and $1,463, respectively. On September 28, 2023, the Company closed on the exercise of its lease purchase option, as permitted under the lease agreement, to acquire ownership of the manufacturing facility located in Ocala, Florida for a cash purchase price of $23,207. The Ocala lease had a maturity date in 2025 and bore interest at a fixed rate of approximately 5.6%. As a result of exercising the purchase option, the Company no longer has any future lease obligations related to this real estate. The remaining lease liability balance relates to finance equipment leases. The aggregate future maturities of lease payments for operating leases and finance leases as of September 30, 2025 are as follows (in thousands):
| Operating Leases | Finance Leases
2026 | $ | 41,883 |  | $ | 116 |
2027 | 38,045 |  | 54 |
2028 | 32,428 |  | 49 |
2029 | 27,195 |  | 50 |
2030 | 19,593 |  | 12 |
Thereafter | 60,825 |  | — |
Total lease payments | 219,969 |  | 281 |
Less: imputed interest | (40,459) |  | (30) |
Present value of lease liabilities | $ | 179,510 |  | $ | 251 |
Average lease terms and discount rates were as follows:
| As of September 30, |
| 2025 | 2024 |
Weighted-average remaining lease term (years) |  |  |
Operating Leases | 6.6 | 7.1 |
Finance Leases | 3.6 | 4.2 |
Weighted-average discount rate |  |  |
Operating Leases | 6.19% | 6.33% |
Finance Leases | 6.76% | 6.70% |
LEASES | LEASES The Company recognizes right-of-use ("ROU") assets and lease liabilities on the balance sheet, with the exception of leases with a term of twelve months or less. The Company determines if an arrangement is a lease at inception. The ROU assets and short and long-term liabilities associated with our Operating leases are shown as separate line items on our Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, net, accrued liabilities, and other liabilities on our Consolidated Balance Sheets. The Company's finance leases are immaterial. ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments primarily include rent and insurance costs (lease components). The Company's leases also include non-lease components such as real estate taxes and common-area maintenance costs. The Company elected the practical expedient to account for lease and non-lease components as a single component. In certain of the Company's leases, the non-lease components are variable and in accordance with the standard are therefore excluded from lease payments to determine the ROU asset. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases and impaired operating leases, the ROU asset is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less (a "Short-term" lease), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Consolidated Balance Sheets. Variable lease cost for both operating and finance leases, if any, is recognized as incurred. Components of operating lease costs are as follows:
| For the Year Ended September 30,
| 2025 | 2024 | 2023
Fixed | $ | 46,995 |  | $ | 46,575 |  | $ | 45,993 |
Variable (a), (b) | 10,580 |  | 9,772 |  | 10,654 |
Short-term (b) | 5,163 |  | 4,997 |  | 7,717 |
Total | $ | 62,738 |  | $ | 61,344 |  | $ | 64,364 |
(a) Primarily related to common-area maintenance and property taxes. (b) Not recorded on the balance sheet. Supplemental cash flow information were as follows:
| For the Year Ended September 30,
| 2025 | 2024 | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 43,496 |  | $ | 45,439 |  | $ | 41,533 |
Financing cash flows from finance leases | 154 |  | 291 |  | 2,164 |
Total | $ | 43,650 |  | $ | 45,730 |  | $ | 43,697 |
Supplemental Consolidated Balance Sheet information related to leases were as follows:
| As of September 30,
| 2025 | 2024
Operating Leases: |  |
Right of use assets: |  |
Operating right-of-use assets | $ | 167,829 |  | $ | 171,211 |
Lease Liabilities: |  |
Current portion of operating lease liabilities | $ | 32,307 |  | $ | 35,065 |
Long-term operating lease liabilities | 147,203 |  | 147,369 |
Total operating lease liabilities | $ | 179,510 |  | $ | 182,434 |
Finance Leases: |  |
Right of use assets: |  |
Property, plant and equipment, net(1) | $ | 430 |  | $ | 808 |
Lease Liabilities: |  |
Notes payable and current portion of long-term debt | $ | 102 |  | $ | 155 |
Long-term debt, net | 149 |  | 255 |
Total financing lease liabilities | $ | 251 |  | $ | 410 |
(1) For the years ended September 30, 2025 and 2024, finance lease assets are recorded net of accumulated depreciation of $1,399 and $1,463, respectively. On September 28, 2023, the Company closed on the exercise of its lease purchase option, as permitted under the lease agreement, to acquire ownership of the manufacturing facility located in Ocala, Florida for a cash purchase price of $23,207. The Ocala lease had a maturity date in 2025 and bore interest at a fixed rate of approximately 5.6%. As a result of exercising the purchase option, the Company no longer has any future lease obligations related to this real estate. The remaining lease liability balance relates to finance equipment leases. The aggregate future maturities of lease payments for operating leases and finance leases as of September 30, 2025 are as follows (in thousands):
| Operating Leases | Finance Leases
2026 | $ | 41,883 |  | $ | 116 |
2027 | 38,045 |  | 54 |
2028 | 32,428 |  | 49 |
2029 | 27,195 |  | 50 |
2030 | 19,593 |  | 12 |
Thereafter | 60,825 |  | — |
Total lease payments | 219,969 |  | 281 |
Less: imputed interest | (40,459) |  | (30) |
Present value of lease liabilities | $ | 179,510 |  | $ | 251 |
Average lease terms and discount rates were as follows:
| As of September 30, |
| 2025 | 2024 |
Weighted-average remaining lease term (years) |  |  |
Operating Leases | 6.6 | 7.1 |
Finance Leases | 3.6 | 4.2 |
Weighted-average discount rate |  |  |
Operating Leases | 6.19% | 6.33% |
Finance Leases | 6.76% | 6.70% |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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