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LEASES
 6 Months Ended
Mar. 31, 2022
Leases [Abstract]  
LEASES LEASES
The Company recognizes right-of-use ("ROU") assets and lease liabilities on the balance sheet, with the exception of leases with a term of twelve months or less. The Company determines if an arrangement is a lease at inception. The ROU assets and short and long-term liabilities associated with our Operating leases are shown as separate line items on our Condensed Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, net, other accrued liabilities, and other non-current liabilities. The Company's finance leases are immaterial. ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments primarily include rent and insurance costs (lease components). The Company's leases also include non-lease components such as real estate taxes and common-area maintenance costs. The Company elected the practical expedient to account for lease and non-lease components as a single component. In certain of the Company's leases, the non-lease components are variable and in accordance with the standard are therefore excluded from lease payments to determine the ROU asset. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases and impaired operating leases, the ROU asset is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less (a "Short-term" lease), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Condensed Consolidated Balance Sheets.Variable lease cost for both operating and finance leases, if any, is recognized as incurred. Components of operating lease costs are as follows:
For the Three Months Ended March 31,For the Six Months Ended March 31,
2022202120222021
Fixed$9,906 $9,686 $19,653 $19,177 
Variable (a), (b)
1,684 1,919 3,536 3,813 
Short-term (b)
1,486 985 2,835 2,055 
Total$13,076 $12,590 $26,024 $25,045 
(a) Primarily relates to common-area maintenance and property taxes.
(b) Not recorded on the balance sheet.
Supplemental cash flow information were as follows:
For the Six Months Ended March 31,
20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$22,510 $21,223 
Financing cash flows from finance leases1,401 1,865 
Total$23,911 $23,088 

Supplemental Condensed Consolidated Balance Sheet information related to leases were as follows:
March 31, 2022September 30, 2021
Operating Leases:
Right of use assets:
Operating right-of-use assets$149,587 $144,598 
Lease Liabilities:
Current portion of operating lease liabilities$32,210 $29,881 
Long-term operating lease liabilities122,488 119,315 
Total operating lease liabilities$154,698 $149,196 
Finance Leases:
Property, plant and equipment, net(1)
$15,113 $16,466 
Lease Liabilities:
Notes payable and current portion of long-term debt$2,329 $2,347 
Long-term debt, net13,019 14,120 
Total financing lease liabilities$15,348 $16,467 
(1) Finance lease assets are recorded net of accumulated depreciation of $4,488 and $6,136 as of March 31, 2022 and September 30, 2021, respectively.
Griffon has one finance lease outstanding for real estate located in Ocala, Florida. The lease matures in 2025 and bears interest at a fixed rate of approximately 5.6%. The Ocala, Florida lease contains two five-year renewal options. At March 31, 2022, $13,757 was outstanding, net of issuance costs. During the six months ended March 31, 2022, the financing lease on the Troy, Ohio location expired. The lease bore interest at a rate of approximately 5.0%, was secured by a mortgage on the real estate, which was guaranteed by Griffon, and had a one dollar buyout at the end of the lease. Griffon exercised the one dollar buyout option in November 2021.

The aggregate future maturities of lease payments for operating leases and finance leases as of March 31, 2022 are as follows (in thousands):
Operating LeasesFinance Leases
2022(a)
$20,230 $1,541 
202334,959 2,893 
202426,530 2,322 
202523,775 2,128 
202615,566 2,106 
202711,677 2,074 
Thereafter54,552 5,703 
Total lease payments$187,289 $18,767 
Less: Imputed Interest(32,591)(3,419)
Present value of lease liabilities$154,698 $15,348 
(a) Excluding the six months ended March 31, 2022.

Average lease terms and discount rates at March 31, 2022 were as follows:
Weighted-average remaining lease term (years)
Operating leases7.6
Finance Leases7.8
Weighted-average discount rate
Operating Leases4.36 %
Finance Leases5.49 %
LEASES LEASES
The Company recognizes right-of-use ("ROU") assets and lease liabilities on the balance sheet, with the exception of leases with a term of twelve months or less. The Company determines if an arrangement is a lease at inception. The ROU assets and short and long-term liabilities associated with our Operating leases are shown as separate line items on our Condensed Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, net, other accrued liabilities, and other non-current liabilities. The Company's finance leases are immaterial. ROU assets, along with any other related long-lived assets, are periodically evaluated for impairment.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments primarily include rent and insurance costs (lease components). The Company's leases also include non-lease components such as real estate taxes and common-area maintenance costs. The Company elected the practical expedient to account for lease and non-lease components as a single component. In certain of the Company's leases, the non-lease components are variable and in accordance with the standard are therefore excluded from lease payments to determine the ROU asset. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

For operating leases, fixed lease payments are recognized as operating lease cost on a straight-line basis over the lease term. For finance leases and impaired operating leases, the ROU asset is depreciated on a straight-line basis over the remaining lease term, along with recognition of interest expense associated with accretion of the lease liability. For leases with a lease term of 12 months or less (a "Short-term" lease), any fixed lease payments are recognized on a straight-line basis over such term, and are not recognized on the Condensed Consolidated Balance Sheets.Variable lease cost for both operating and finance leases, if any, is recognized as incurred. Components of operating lease costs are as follows:
For the Three Months Ended March 31,For the Six Months Ended March 31,
2022202120222021
Fixed$9,906 $9,686 $19,653 $19,177 
Variable (a), (b)
1,684 1,919 3,536 3,813 
Short-term (b)
1,486 985 2,835 2,055 
Total$13,076 $12,590 $26,024 $25,045 
(a) Primarily relates to common-area maintenance and property taxes.
(b) Not recorded on the balance sheet.
Supplemental cash flow information were as follows:
For the Six Months Ended March 31,
20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$22,510 $21,223 
Financing cash flows from finance leases1,401 1,865 
Total$23,911 $23,088 

Supplemental Condensed Consolidated Balance Sheet information related to leases were as follows:
March 31, 2022September 30, 2021
Operating Leases:
Right of use assets:
Operating right-of-use assets$149,587 $144,598 
Lease Liabilities:
Current portion of operating lease liabilities$32,210 $29,881 
Long-term operating lease liabilities122,488 119,315 
Total operating lease liabilities$154,698 $149,196 
Finance Leases:
Property, plant and equipment, net(1)
$15,113 $16,466 
Lease Liabilities:
Notes payable and current portion of long-term debt$2,329 $2,347 
Long-term debt, net13,019 14,120 
Total financing lease liabilities$15,348 $16,467 
(1) Finance lease assets are recorded net of accumulated depreciation of $4,488 and $6,136 as of March 31, 2022 and September 30, 2021, respectively.
Griffon has one finance lease outstanding for real estate located in Ocala, Florida. The lease matures in 2025 and bears interest at a fixed rate of approximately 5.6%. The Ocala, Florida lease contains two five-year renewal options. At March 31, 2022, $13,757 was outstanding, net of issuance costs. During the six months ended March 31, 2022, the financing lease on the Troy, Ohio location expired. The lease bore interest at a rate of approximately 5.0%, was secured by a mortgage on the real estate, which was guaranteed by Griffon, and had a one dollar buyout at the end of the lease. Griffon exercised the one dollar buyout option in November 2021.

The aggregate future maturities of lease payments for operating leases and finance leases as of March 31, 2022 are as follows (in thousands):
Operating LeasesFinance Leases
2022(a)
$20,230 $1,541 
202334,959 2,893 
202426,530 2,322 
202523,775 2,128 
202615,566 2,106 
202711,677 2,074 
Thereafter54,552 5,703 
Total lease payments$187,289 $18,767 
Less: Imputed Interest(32,591)(3,419)
Present value of lease liabilities$154,698 $15,348 
(a) Excluding the six months ended March 31, 2022.

Average lease terms and discount rates at March 31, 2022 were as follows:
Weighted-average remaining lease term (years)
Operating leases7.6
Finance Leases7.8
Weighted-average discount rate
Operating Leases4.36 %
Finance Leases5.49 %