XML 33 R18.htm IDEA: XBRL DOCUMENT
v3.20.4

Leases | 12 Months Ended
--- | ---
Sep. 30, 2020
Leases [Abstract] |
Leases | Leases The adoption of Topic 842 requires lessees to recognize a ROU asset and a lease liability on the consolidated balance sheet, with the exception of short-term leases. The Company primarily leases its manufacturing buildings, specifically at its Orange location, machinery and office equipment. The Company determines if a contract contains a lease based on whether the contract conveys the right to control the use of identified assets for a period in exchange for consideration. Upon identification and commencement of a lease, the Company establishes a ROU asset and a lease liability. Operating leases are included in ROU assets, short-term operating lease liabilities, and long-term operating lease liabilities on the consolidated balance sheets. Finance leases are included in property, plant, and equipment, current maturities of long-term debt and long-term debt on the consolidated balance sheets. The Company has remaining lease terms ranging from one to 16 years, some of which include options to renew the lease. The total lease term is determined by considering the initial lease term per the lease agreement, which is adjusted to include any renewal options that the Company is reasonably certain to exercise as well as any period that the Company has control before the stated initial term of the agreement. If the Company determines there exists a reasonable certainty of exercising termination or early buyout options, then the lease terms are adjusted to account for these facts. A portion of our real estate leases include rents that are generally subject to annual changes in the Consumer Price Index ("CPI"). Such changes to the CPI are treated as variable lease payments. The Company elected the package of practical expedients permitted under the transition guidance within the new standard which, among other things, allowed the Company to carry forward the historical lease classification. The Company has made an accounting policy election to not separate non-lease components from lease components when allocating consideration for the buildings and machinery and equipment ROU asset classes. The election was made to reduce the administrative burden that would be imposed on the Company. ROU assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date and duration of the lease term in determining the present value of the future payments. Lease expense for operating leases is recognized on a straight-line basis over the lease term, while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. A lease asset and lease liability are not recorded for leases with an initial term of 12 months or less and the lease expense related to these leases is recognized as incurred over the lease term. The components of lease expense were as follows:
| Year Ended September 30, 2020
Lease expense |
Finance lease expense: |
Amortization of right-of use assets on finance leases | $ | 55 |
Interest on lease liabilities | 5
Operating lease expense: | 2,173 |
Variable lease cost: | 157
Total lease expense | $ | 2,390 |
The following table presents the impact of leasing on the consolidated balance sheet at September 30:
| Classification to the consolidated balance sheets |  | 2020
Assets: |  |  |
Finance lease assets | Property, plant and equipment, net |  | $ | 89 |
Operating lease assets | Operating lease right-of-use assets, net |  | 17,021 |
Total lease assets |  |  | $ | 17,110 |
Current liabilities: |  |  |
Finance lease liabilities | Current maturities of long-term debt |  | $ | 58 |
Operating lease liabilities | Short-term operating lease liabilities |  | 991 |
Non-current liabilities: |  |  |
Finance lease liabilities | Long-term debt, net of current maturities |  | 22 |
Operating lease liabilities | Long-term operating lease liabilities, net of short-term |  | 16,188 |
Total lease liabilities |  |  | $ | 17,259 |
Supplemental cash flow and other information related to leases were as follows:
| September 30, 2020
Other Information |
Cash paid for amounts included in measurement of liabilities: |
Operating cash flows from operating leases | $ | 2,173 |
Operating cash flows from finance leases | 5
Financing cash flows from finance leases | 57
Right-of-use assets obtained in exchange for new lease liabilities: |
Operating leases | $ | 278 |
| September 30, 2020
Weighted-average remaining lease term (years): |
Finance leases | 1.64
Operating leases | 15.15
Weighted-average discount rate: |
Finance leases | 4.84 | %
Operating leases | 5.89 | %
Future minimum lease payments under non-cancellable leases as of September 30, 2020 were as follows:
Year ending September 30, | Finance Leases |  | Operating Leases
2021 | $ | 55 |  |  | $ | 1,939 |
2022 | 21 |  |  | 1,687 |
2023 | 6 |  |  | 1,624 |
2024 | — |  |  | 1,639 |
2025 | — |  | 1,635 |
Thereafter | — |  | 17,515 |
Total lease payments | $ | 82 |  |  | $ | 26,039 |
Less: Imputed interest | (2) |  |  | (8,860) |
Present value of lease liabilities | $ | 80 |  |  | $ | 17,179 |
As previously disclosed in the Company's 2019 Annual Report on Form 10-K, the Company recorded rent expense of $2,391 in fiscal 2019 and under the previous lease accounting standard, future minimum lease payments under initial or remaining non-cancellable lease terms in excess of one year would have been as follows:
Year ending September 30, | Finance Leases |  | Operating Leases
2020 | $ | 61 |  |  | $ | 2,172 |
2021 | 61 |  |  | 1,865 |
2022 | 21 |  |  | 1,583 |
2023 | 6 |  |  | 1,502 |
2024 | — |  |  | 1,498 |
Thereafter | — |  |  | 16,711 |
Total lease payments | $ | 149 |  |  | $ | 25,331 |
Less: Interest | (11) |  |  |
Present value of lease liabilities | $ | 138 |  |  |
Leases | Leases The adoption of Topic 842 requires lessees to recognize a ROU asset and a lease liability on the consolidated balance sheet, with the exception of short-term leases. The Company primarily leases its manufacturing buildings, specifically at its Orange location, machinery and office equipment. The Company determines if a contract contains a lease based on whether the contract conveys the right to control the use of identified assets for a period in exchange for consideration. Upon identification and commencement of a lease, the Company establishes a ROU asset and a lease liability. Operating leases are included in ROU assets, short-term operating lease liabilities, and long-term operating lease liabilities on the consolidated balance sheets. Finance leases are included in property, plant, and equipment, current maturities of long-term debt and long-term debt on the consolidated balance sheets. The Company has remaining lease terms ranging from one to 16 years, some of which include options to renew the lease. The total lease term is determined by considering the initial lease term per the lease agreement, which is adjusted to include any renewal options that the Company is reasonably certain to exercise as well as any period that the Company has control before the stated initial term of the agreement. If the Company determines there exists a reasonable certainty of exercising termination or early buyout options, then the lease terms are adjusted to account for these facts. A portion of our real estate leases include rents that are generally subject to annual changes in the Consumer Price Index ("CPI"). Such changes to the CPI are treated as variable lease payments. The Company elected the package of practical expedients permitted under the transition guidance within the new standard which, among other things, allowed the Company to carry forward the historical lease classification. The Company has made an accounting policy election to not separate non-lease components from lease components when allocating consideration for the buildings and machinery and equipment ROU asset classes. The election was made to reduce the administrative burden that would be imposed on the Company. ROU assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date and duration of the lease term in determining the present value of the future payments. Lease expense for operating leases is recognized on a straight-line basis over the lease term, while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. A lease asset and lease liability are not recorded for leases with an initial term of 12 months or less and the lease expense related to these leases is recognized as incurred over the lease term. The components of lease expense were as follows:
| Year Ended September 30, 2020
Lease expense |
Finance lease expense: |
Amortization of right-of use assets on finance leases | $ | 55 |
Interest on lease liabilities | 5
Operating lease expense: | 2,173 |
Variable lease cost: | 157
Total lease expense | $ | 2,390 |
The following table presents the impact of leasing on the consolidated balance sheet at September 30:
| Classification to the consolidated balance sheets |  | 2020
Assets: |  |  |
Finance lease assets | Property, plant and equipment, net |  | $ | 89 |
Operating lease assets | Operating lease right-of-use assets, net |  | 17,021 |
Total lease assets |  |  | $ | 17,110 |
Current liabilities: |  |  |
Finance lease liabilities | Current maturities of long-term debt |  | $ | 58 |
Operating lease liabilities | Short-term operating lease liabilities |  | 991 |
Non-current liabilities: |  |  |
Finance lease liabilities | Long-term debt, net of current maturities |  | 22 |
Operating lease liabilities | Long-term operating lease liabilities, net of short-term |  | 16,188 |
Total lease liabilities |  |  | $ | 17,259 |
Supplemental cash flow and other information related to leases were as follows:
| September 30, 2020
Other Information |
Cash paid for amounts included in measurement of liabilities: |
Operating cash flows from operating leases | $ | 2,173 |
Operating cash flows from finance leases | 5
Financing cash flows from finance leases | 57
Right-of-use assets obtained in exchange for new lease liabilities: |
Operating leases | $ | 278 |
| September 30, 2020
Weighted-average remaining lease term (years): |
Finance leases | 1.64
Operating leases | 15.15
Weighted-average discount rate: |
Finance leases | 4.84 | %
Operating leases | 5.89 | %
Future minimum lease payments under non-cancellable leases as of September 30, 2020 were as follows:
Year ending September 30, | Finance Leases |  | Operating Leases
2021 | $ | 55 |  |  | $ | 1,939 |
2022 | 21 |  |  | 1,687 |
2023 | 6 |  |  | 1,624 |
2024 | — |  |  | 1,639 |
2025 | — |  | 1,635 |
Thereafter | — |  | 17,515 |
Total lease payments | $ | 82 |  |  | $ | 26,039 |
Less: Imputed interest | (2) |  |  | (8,860) |
Present value of lease liabilities | $ | 80 |  |  | $ | 17,179 |
As previously disclosed in the Company's 2019 Annual Report on Form 10-K, the Company recorded rent expense of $2,391 in fiscal 2019 and under the previous lease accounting standard, future minimum lease payments under initial or remaining non-cancellable lease terms in excess of one year would have been as follows:
Year ending September 30, | Finance Leases |  | Operating Leases
2020 | $ | 61 |  |  | $ | 2,172 |
2021 | 61 |  |  | 1,865 |
2022 | 21 |  |  | 1,583 |
2023 | 6 |  |  | 1,502 |
2024 | — |  |  | 1,498 |
Thereafter | — |  |  | 16,711 |
Total lease payments | $ | 149 |  |  | $ | 25,331 |
Less: Interest | (11) |  |  |
Present value of lease liabilities | $ | 138 |  |  |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration