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Leases

6 Months Ended

Mar. 31, 2023

7. Leases

The Company has operating leases for real estate and non-real estate and finance leases for non-real estate in North America, Europe, and Asia. Non-real estate leases are primarily related to vehicles and office equipment. Lease expiration dates range between 2023 and 2042.

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


	Three Months Ended March 31,				Six Months Ended March 31,
	2023		2022		2023		2022

Operating lease costs	$	3,086	$	2,389	$	6,150	$	4,560
Finance lease costs:
Amortization of assets		151		54		242		129
Interest on lease liabilities		9		2		13		5
Total finance lease costs		160		56		255		134
Variable lease costs		-		755		2		1,272
Short-term lease costs		226		364		410		718
Sublease income		(2)		-		(4)		-
Total lease costs	$	3,470	$	3,564	$	6,813	$	6,684

Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):


	March 31, 2023			September 30, 2022
Operating Leases:
Operating lease right-of-use assets	$	63,122		$	54,059

Accrued expenses and other current liabilities	$	8,778		$	6,924
Long-term operating lease liabilities		57,137			49,227
Total operating lease liabilities	$	65,915		$	56,151

Finance Leases:
Property, plant and equipment, at cost	$	4,010		$	2,476
Accumulated amortization		(2,504)			(2,276)
Property, plant and equipment, net	$	1,506		$	200

Accrued expenses and other current liabilities	$	543		$	96
Other long-term liabilities		1,129			98
Total finance lease liabilities	$	1,672		$	194

Weighted average remaining lease term (in years):
Operating leases		10.10			10.82
Finance leases		3.46			2.19

Weighted average discount rate:
Operating leases		4.04	%		3.93	%
Finance leases		2.44	%		1.29	%

Supplemental cash flow information related to leases was as follows (in thousands, unaudited):


	Three Months Ended March 31,				Six Months Ended March 31,
	2023		2022		2023		2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	2,631	$	1950	$	5,200	$	3,599
Operating cash flows from finance leases		9		1		13		4
Financing cash flows from finance leases		139		127		226		312

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	7,230	$	7,327	$	6,464	$	7,490
Finance leases		270		-		1,060		-

Future lease payments for operating and finance leases as of March 31, 2023 were as follows for the remainder of fiscal year 2023, the subsequent four fiscal years and thereafter (in thousands):


		Finance Leases	Operating Leases

2023	$	298	$	5,779
2024		540		10,613
2025		450		10,316
2026		308		7,974
2027		135		7,552
Thereafter		17		39,860
Total future lease payments		1,748		82,094
Less imputed interest		(76)		(16,179)
Total lease liability balance	$	1,672	$	65,915

As of March 31, 2023, the Company did not have significant leases that have not commenced or not recorded in the accompanying unaudited Consolidated Balance Sheets.