Leases

12 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

10. Leases

The Company has operating leases for real estate and non-real estate and finance leases for non-real estate in North America, Europe, and Asia. Non-real estate leases are primarily related to vehicles and office equipment. Lease expiration dates range between 2023 and 2043.

The components of operating lease expense for fiscal years 2023 and 2022 were as follows (in thousands):

	Year Ended September 30,
	2023		2022
Operating lease costs	$	12,435	$	9,396
Finance lease costs:
Amortization of assets		620		182
Interest on lease liabilities		40		5
Total finance lease costs		660		187
Total operating and finance lease costs		13,095		9,583
Variable lease costs		3,251		3
Short-term lease costs		1,920		1,411
Total lease costs	$	18,266	$	10,997

Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):

	September 30, 2023			September 30, 2022
Operating Leases:
Operating lease right-of-use assets	$	66,580		$	54,059
Accrued expenses and other current liabilities	$	9,499		$	6,924
Long-term operating lease liabilities		60,436			49,227
Total operating lease liabilities	$	69,935		$	56,151
Finance Leases:
Property, plant and equipment, at cost	$	4,718		$	2,476
Accumulated amortization		(2,780)			(2,276)
Property, plant and equipment, net	$	1,938		$	200
Accrued expenses and other current liabilities	$	677		$	96
Other long-term liabilities		1,361			98
Total finance lease liabilities	$	2,038		$	194
Weighted average remaining lease term (in years):
Operating leases		10.92			10.82
Finance leases		3.41			2.19
Weighted average discount rate:
Operating leases		4.26	%		3.93	%
Finance leases		2.76	%		1.29	%

Supplemental cash flow information related to leases is as follows (in thousands):

	Year Ended September 30,
	2023		2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows - operating leases	$	10,949	$	7,977
Operating cash flows - finance leases	$	40	$	5
Financing cash flows - finance leases	$	578	$	393
ROU assets obtained in exchange for lease liabilities:
Operating leases	$	15,038	$	10,842
Finance leases	$	1,813	$	68

Future lease payments for operating leases as of September 30, 2023 were as follows for the subsequent five fiscal years and thereafter (in thousands):

		Finance Leases	Operating Leases
2024	$	724	$	12,175
2025		635		11,838
2026		474		8,238
2027		238		7,807
2028		57		7,482
Thereafter		9		42,531
Total future lease payments		2,137		90,071
Less imputed interest		(99)		(20,136)
Total lease liability balance	$	2,038	$	69,935

As of September 30, 2023, in addition to the amounts disclosed above, the Company has lease commitments of approximately $4.2 million for leases where the Company has not taken possession of the underlying asset, and anticipates lease commencement in the first quarter of fiscal year 2024. As such, the related ROU assets and lease liabilities have not been recognized in the Company’s Consolidated Balance Sheet as of September 30, 2023.