Leases

12 Months Ended

Sep. 30, 2023

The Company leases certain facilities, office space, vehicles and equipment. As of September 30, 2023, operating leases under Topic 842 were included in (i) operating lease right-of use assets, (ii) current portion of operating lease liabilities and (iii) operating lease liabilities, net of current portion on the Consolidated Balance Sheets in the amounts of $14.5 million, $2.3 million and $12.6 million, respectively. As of September 30, 2023, the Company did not have any lease contracts that had not yet commenced but had created significant rights and obligations.

The components of lease expense were as follows for the periods presented (in thousands):


	For the Fiscal Year Ended September 30,
	2023		2022		2021
Operating lease cost	$	3,150	$	2,568	$	2,475
Short-term lease cost	22,631		21,177		13,346
Total lease expense	25,781		23,745		15,821

Short-term leases (those with terms of 12 months or less) are not capitalized but are expensed on a straight-line basis over the lease term. The majority of the Company’s short-term leases relate to equipment used on construction projects. These leases are entered into at periodic rental rates for an unspecified duration and typically have a termination for convenience provision.

As of September 30, 2023, the weighted-average remaining term of the Company’s operating leases was 8.0 years, and the weighted-average discount rate was 3.36%. As of September 30, 2023, the lease liability was equal to the present value of the remaining lease payments, discounted using the incremental borrowing rate on the Company’s secured debt using a single maturity discount rate, as such rate is not materially different from the discount rate applied to each of the leases in the portfolio.

The following table summarizes the Company’s undiscounted lease liabilities outstanding as of September 30, 2023 (in thousands):


Fiscal Year	Amount
2024	$	2,793
2025	2,389
2026	2,240
2027	2,018
2028	1,712
Thereafter	6,117
Total future minimum lease payments	$	17,269
Less: imputed interest	2,282
Total	$	14,987