Leases

12 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Leases

We adopted the provisions of the new lease accounting standard beginning on October 1, 2019, using the optional transition method, which allowed us to apply the provisions of the new standard to all leases that existed as of the date of adoption. Therefore, results for reporting periods beginning on October 1, 2019 are presented under the new lease accounting standard and prior periods are presented under the former lease accounting standard.

We are the lessee for substantially all of our leasing activity, which primarily includes operating leases for office and warehouse space, tower space, vehicles and heavy equipment used in our operations. We are also a lessee in finance leases for service centers.

The following table presents our weighted average remaining lease term for our leases.

	September 30, 2021	September 30, 2020
Weighted average remaining lease term (years)
Finance leases	19.0	19.1
Operating leases	10.2	10.6

The following table represents our weighted average discount rate:

	September 30, 2021		September 30, 2020
Weighted average discount rate
Finance leases	5.7	%	8.0	%
Operating leases	2.8	%	2.9	%

Lease costs for the year ended September 30, 2021 and 2020 are presented in the table below. These costs include both amounts recognized in expense and amounts capitalized. For the year ended September 30, 2021 and 2020 we did not have material short-term lease costs or variable lease costs.

	September 30, 2021		September 30, 2020
	(In thousands)
Finance lease cost	$	1,334	$	622
Operating lease cost	42,349		40,887
Total lease cost	$	43,683	$	41,509

Our ROU assets and lease liabilities are presented as follows on the consolidated balance sheets:

	Balance Sheet Classification	September 30, 2021		September 30, 2020
		(In thousands)
Assets
Finance leases	Net Property, Plant and Equipment	$	18,252	$	8,480
Operating leases	Deferred charges and other assets	222,446		227,146
Total right-of-use assets		$	240,698	$	235,626
Liabilities
Current
Finance leases	Current maturities of long-term debt	$	452	$	165
Operating leases	Other current liabilities	37,688		35,716
Noncurrent
Finance leases	Long-term debt	18,287		8,466
Operating leases	Deferred credits and other liabilities	194,745		201,071
Total lease liabilities		$	251,172	$	245,418

Finance leases for two service centers are expected to commence in the first quarter of fiscal 2022 that impact our future lease payments. The total future lease payments for these leases are $46.5 million.

Other pertinent information related to leases was as follows. During the year ended September 30, 2021 and 2020, amounts paid in cash for our finance leases were not material.

	September 30, 2021		September 30, 2020
	(In thousands)
Cash paid amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	42,013	$	37,758
Right-of-use assets obtained in exchange for lease obligations
Finance leases	$	10,333	$	6,083
Operating leases	$	25,690	$	34,169

Maturities of our lease liabilities as of September 30, 2021 were as follows:

	Total		Finance Leases		Operating Leases
	(In thousands)
2022	$	43,164	$	1,342	$	41,822
2023	38,690		1,365		37,325
2024	32,106		1,388		30,718
2025	23,927		1,411		22,516
2026	18,278		1,435		16,843
Thereafter	144,718		22,868		121,850
Total lease payments	300,883		29,809		271,074
Less: Imputed interest	49,711		11,070		38,641
Total	$	251,172	$	18,739	$	232,433
Reported as of September 30, 2021
Short-term lease liabilities	$	38,140	$	452	$	37,688
Long-term lease liabilities	213,032		18,287		194,745
Total lease liabilities	$	251,172	$	18,739	$	232,433

Disclosures Related to Periods Prior to Adoption of ASC 842

Consolidated lease and rental expense amounted to $40.4 million for fiscal 2019.

Leases

Leases

We adopted the provisions of the new lease accounting standard beginning on October 1, 2019, using the optional transition method, which allowed us to apply the provisions of the new standard to all leases that existed as of the date of adoption. Therefore, results for reporting periods beginning on October 1, 2019 are presented under the new lease accounting standard and prior periods are presented under the former lease accounting standard.

We are the lessee for substantially all of our leasing activity, which primarily includes operating leases for office and warehouse space, tower space, vehicles and heavy equipment used in our operations. We are also a lessee in finance leases for service centers.

The following table presents our weighted average remaining lease term for our leases.

	September 30, 2021	September 30, 2020
Weighted average remaining lease term (years)
Finance leases	19.0	19.1
Operating leases	10.2	10.6

The following table represents our weighted average discount rate:

	September 30, 2021		September 30, 2020
Weighted average discount rate
Finance leases	5.7	%	8.0	%
Operating leases	2.8	%	2.9	%

Lease costs for the year ended September 30, 2021 and 2020 are presented in the table below. These costs include both amounts recognized in expense and amounts capitalized. For the year ended September 30, 2021 and 2020 we did not have material short-term lease costs or variable lease costs.

	September 30, 2021		September 30, 2020
	(In thousands)
Finance lease cost	$	1,334	$	622
Operating lease cost	42,349		40,887
Total lease cost	$	43,683	$	41,509

Our ROU assets and lease liabilities are presented as follows on the consolidated balance sheets:

	Balance Sheet Classification	September 30, 2021		September 30, 2020
		(In thousands)
Assets
Finance leases	Net Property, Plant and Equipment	$	18,252	$	8,480
Operating leases	Deferred charges and other assets	222,446		227,146
Total right-of-use assets		$	240,698	$	235,626
Liabilities
Current
Finance leases	Current maturities of long-term debt	$	452	$	165
Operating leases	Other current liabilities	37,688		35,716
Noncurrent
Finance leases	Long-term debt	18,287		8,466
Operating leases	Deferred credits and other liabilities	194,745		201,071
Total lease liabilities		$	251,172	$	245,418

Finance leases for two service centers are expected to commence in the first quarter of fiscal 2022 that impact our future lease payments. The total future lease payments for these leases are $46.5 million.

Other pertinent information related to leases was as follows. During the year ended September 30, 2021 and 2020, amounts paid in cash for our finance leases were not material.

	September 30, 2021		September 30, 2020
	(In thousands)
Cash paid amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	42,013	$	37,758
Right-of-use assets obtained in exchange for lease obligations
Finance leases	$	10,333	$	6,083
Operating leases	$	25,690	$	34,169

Maturities of our lease liabilities as of September 30, 2021 were as follows:

	Total		Finance Leases		Operating Leases
	(In thousands)
2022	$	43,164	$	1,342	$	41,822
2023	38,690		1,365		37,325
2024	32,106		1,388		30,718
2025	23,927		1,411		22,516
2026	18,278		1,435		16,843
Thereafter	144,718		22,868		121,850
Total lease payments	300,883		29,809		271,074
Less: Imputed interest	49,711		11,070		38,641
Total	$	251,172	$	18,739	$	232,433
Reported as of September 30, 2021
Short-term lease liabilities	$	38,140	$	452	$	37,688
Long-term lease liabilities	213,032		18,287		194,745
Total lease liabilities	$	251,172	$	18,739	$	232,433

Disclosures Related to Periods Prior to Adoption of ASC 842

Consolidated lease and rental expense amounted to $40.4 million for fiscal 2019.