Leases

6 Months Ended

Mar. 31, 2024

The Company leases certain facilities, office space, vehicles and equipment. As of March 31, 2024, operating leases under ASC Topic 842, Leases (“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 Company’s Consolidated Balance Sheets in the amounts of $26.7 million, $5.6 million and $21.7 million, respectively. As of March 31, 2024, 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 (unaudited, in thousands):


	For the Three Months Ended March 31,
	2024		2023
Operating lease cost	$	1,471	$	788
Short-term lease cost	5,906		4,733
Total lease expense	$	7,377	$	5,521


	For the Six Months Ended March 31,
	2024		2023
Operating lease cost	$	2,374	$	1,514
Short-term lease cost	11,282		10,768
Total lease expense	$	13,656	$	12,282

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 March 31, 2024, the weighted-average remaining term of the Company’s leases was 5.9 years, and the weighted-average discount rate was 5.09%. As of March 31, 2024, 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 March 31, 2024 (unaudited, in thousands):


Fiscal Year	Amount
Remainder of 2024	$	3,450
2025	6,530
2026	6,234
2027	5,486
2028	3,150
2029 and thereafter	6,277
Total future minimum lease payments	$	31,128
Less: imputed interest	3,846
Total	$	27,282