Long-term Obligations

6 Months Ended

Mar. 31, 2017

Note 14. Long-term Obligations

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.

The Company entered into a twenty-year “Build-to-suit” lease for a building that will house the assets and operations of the service center to be located in LaPorte, Indiana that is being relocated from Lebanon, Indiana (See Note 16). During the first quarter of fiscal 2017, the Company took occupancy of the building. The Company retained substantially all of the construction risk and was 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 of approximately $4,100 are included in Property, plant and equipment, net on the Consolidated Balance Sheet and will be depreciated over the 20-year lease term. The Company accounts for the related build-to-suit liability as a financing obligation.

As of March 31, 2017, future minimum lease rental payments during each fiscal year applicable to the lease obligations were as follows.


2017	$	489
2018		982
2019		989
2020		994
2021		1,001
Thereafter		14,609
Total minimum lease payments		19,064
Less amounts representing interest		(10,753)
Present value of net minimum lease payments		8,311
Less current obligation		(925)
Total long-term lease obligation	$	7,386

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


	September 30,		March 31,
	2016		2017
Capital lease rental payments	$	4,331	$	4,303
Finance lease rental payments		3,700		4,008
Environmental post-closure monitoring and maintenance activities		683		683
Less amounts due within one year		(458)		(1,000)
Long-term obligations (less current portion)	$	8,256	$	7,994