Capital Lease Obligation

12 Months Ended

Sep. 30, 2016

Note 18. Capital Lease Obligation

On January 1, 2015, the company entered into a capital lease agreement for the building that houses the assets and operations of LaPorte Custom Metal Processing (LCMP). The capital asset and obligation are recorded at the present value of the minimum lease payments. The asset is included in Property, plant and equipment, net on the Consolidated Balance Sheet and is depreciated over the 20 year lease term. The long term component of the capital lease obligation is included in Long term obligations.

As of September 30, 2016, future minimum lease rental payments applicable to the capital lease were as follows.


2017	$	534
2018		539
2019		544
2020		551
2021		556
Thereafter		7,499
Total minimum capital lease payments		10,223
Less amounts representing interest		(5,892)
Present value of net minimum capital lease payments		4,331
Less current obligation		(383)
Total long term capital lease obligation	$	3,948

The capital lease obligation is included in Long-term obligations (less current portion) on the Consolidated Balance Sheet.


	September 30,
	2015		2016
Future capital lease rental payments	$	4,380	$	4,331
Build-to-suit liability		—		3,700
Environmental post-closure monitoring and maintenance activities		749		683
Less amounts due within one year		(555)		(458)
Long-term obligations (less current portion)		4,574		8,256

In connection with the expansion, the Company has entered into a twenty-year “Build-to-suit” lease that will begin once the Company takes occupancy, which is expected to occur in the first quarter of fiscal 2017. The Company has retained substantially all of the construction risk and is deemed to be the owner of the facility for accounting purposes, even though it is not the legal owner. Construction costs incurred relative to the buildout of the facility are approximately $3,700 and are included in property, plant and equipment and in Build-to-suit liability.