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Leases
 9 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases Leases
The Company leases retail stores, warehouse facilities, and office space. These assets and properties are generally leased under noncancelable agreements that expire at various future dates with many agreements containing renewal options for additional periods. The agreements, which have been classified as either operating or finance leases, generally provide for minimum rent and, in some cases, percentage rent, and require the Company to pay all insurance, taxes, and other maintenance costs. As a result, the Company recognizes assets and liabilities for all leases with lease terms greater than 12 months. The amounts recognized reflect the present value of remaining lease payments for all leases. The discount rate used is an estimate of the Company’s blended incremental borrowing rate based on information available associated with each subsidiary’s debt outstanding at lease commencement. In considering the lease asset value, the Company considers fixed and variable payment terms, prepayments and options to extend, terminate, or purchase. Renewal, termination, or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised.
The following table details the Company's right of use assets and lease liabilities as of June 30, 2025 and September 30, 2024 (in $000's):
June 30, 2025September 30, 2024
Right of use asset - operating leases$55,168 $55,701 
Lease liabilities:
Current - operating12,385 12,885 
Current - finance562 368 
Long term - operating47,457 50,111 
Long term - finance42,265 41,677 
As of June 30, 2025, the weighted average remaining lease term for operating leases is 9.5 years. The Company's weighted average discount rate for operating leases is 9.8%. Total cash payments for operating leases for the nine months ended June 30, 2025 and 2024 were approximately $14.5 million and $13.8 million, respectively. Additionally, the Company recognized approximately $12.8 million in right of use assets and liabilities upon commencement of operating leases during the nine months ended June 30, 2025.
Total present value of future lease payments of operating leases as of June 30, 2025 (in $000's):
Twelve months ended June 30,
2026$17,238 
202714,270 
202811,633 
20298,842 
20305,746 
Thereafter27,981 
Total85,710 
Less implied interest(25,868)
Present value of payments$59,842 
As of June 30, 2025, the weighted average remaining lease term for finance leases is 26.4 years. The Company's weighted average discount rate for finance leases is 11.3%. Total cash payments for finance leases for the nine months ended June 30, 2025 and 2024 were approximately $2.7 million and $2.5 million, respectively. Additionally, the Company recognized no right of use assets and liabilities upon commencement of finance leases during the nine months ended June 30, 2025.
The Company records finance lease right-of-use assets as property and equipment. The balance, as of June 30, 2025 and September 30, 2024 is as follows (in $000’s):
June 30, 2025September 30, 2024
Property and equipment, at cost$27,102 $26,495 
Accumulated depreciation$(2,018)$(1,662)
Property and equipment, net$25,084 $24,833 
Total present value of future lease payments of finance leases as of June 30, 2025 (in $000's):
Twelve months ended June 30,
2026$4,172 
20274,251 
20284,363 
20294,491 
20304,532 
Thereafter122,833 
Total144,642 
Less implied interest(101,815)
Present value of payments$42,827 
Leases Leases
The Company leases retail stores, warehouse facilities, and office space. These assets and properties are generally leased under noncancelable agreements that expire at various future dates with many agreements containing renewal options for additional periods. The agreements, which have been classified as either operating or finance leases, generally provide for minimum rent and, in some cases, percentage rent, and require the Company to pay all insurance, taxes, and other maintenance costs. As a result, the Company recognizes assets and liabilities for all leases with lease terms greater than 12 months. The amounts recognized reflect the present value of remaining lease payments for all leases. The discount rate used is an estimate of the Company’s blended incremental borrowing rate based on information available associated with each subsidiary’s debt outstanding at lease commencement. In considering the lease asset value, the Company considers fixed and variable payment terms, prepayments and options to extend, terminate, or purchase. Renewal, termination, or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised.
The following table details the Company's right of use assets and lease liabilities as of June 30, 2025 and September 30, 2024 (in $000's):
June 30, 2025September 30, 2024
Right of use asset - operating leases$55,168 $55,701 
Lease liabilities:
Current - operating12,385 12,885 
Current - finance562 368 
Long term - operating47,457 50,111 
Long term - finance42,265 41,677 
As of June 30, 2025, the weighted average remaining lease term for operating leases is 9.5 years. The Company's weighted average discount rate for operating leases is 9.8%. Total cash payments for operating leases for the nine months ended June 30, 2025 and 2024 were approximately $14.5 million and $13.8 million, respectively. Additionally, the Company recognized approximately $12.8 million in right of use assets and liabilities upon commencement of operating leases during the nine months ended June 30, 2025.
Total present value of future lease payments of operating leases as of June 30, 2025 (in $000's):
Twelve months ended June 30,
2026$17,238 
202714,270 
202811,633 
20298,842 
20305,746 
Thereafter27,981 
Total85,710 
Less implied interest(25,868)
Present value of payments$59,842 
As of June 30, 2025, the weighted average remaining lease term for finance leases is 26.4 years. The Company's weighted average discount rate for finance leases is 11.3%. Total cash payments for finance leases for the nine months ended June 30, 2025 and 2024 were approximately $2.7 million and $2.5 million, respectively. Additionally, the Company recognized no right of use assets and liabilities upon commencement of finance leases during the nine months ended June 30, 2025.
The Company records finance lease right-of-use assets as property and equipment. The balance, as of June 30, 2025 and September 30, 2024 is as follows (in $000’s):
June 30, 2025September 30, 2024
Property and equipment, at cost$27,102 $26,495 
Accumulated depreciation$(2,018)$(1,662)
Property and equipment, net$25,084 $24,833 
Total present value of future lease payments of finance leases as of June 30, 2025 (in $000's):
Twelve months ended June 30,
2026$4,172 
20274,251 
20284,363 
20294,491 
20304,532 
Thereafter122,833 
Total144,642 
Less implied interest(101,815)
Present value of payments$42,827