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Leases | 12 Months Ended
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Sep. 30, 2020
Leases [Abstract] |
Leases | 12. Leases The Company leases certain real estate, information technology equipment, warehouse equipment, vehicles and other equipment almost exclusively through operating leases. The Company determines whether an arrangement contains a lease at inception. A lease liability and corresponding right of use asset are recognized for qualifying leased assets based on the present value of fixed and certain index-based lease payments at lease commencement. Variable payments, which are generally determined based on the usage rate of the underlying asset, are excluded from the present value of lease payments and are recognized in the period in which the payment is made. To determine the present value of lease payments, the Company uses the stated interest rate in the lease, when available, or more commonly a secured incremental borrowing rate that reflects risk, term and economic environment in which the lease is denominated. The incremental borrowing rate is determined using a portfolio approach based on the current rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company has elected not to separate payments for lease components from payments for non-lease components in contracts that contain both components. Lease agreements may include options to extend or terminate the lease. Those options that are reasonably certain of exercise at lease commencement have been included in the term of the lease used to recognize the right of use assets and lease liabilities. The lease terms of the Company’s real estate and equipment leases extend up to 29 years and 16 years, respectively. The Company has elected not to recognize ROU assets or lease liabilities for leases with a term of twelve months or less. Expense is recognized on a straight-line basis over the lease term for operating leases. In September 2020, the Company entered into a new real estate lease for a warehouse in the Access Equipment segment with a lease term of 15 years. The estimated initial right of use asset and lease liability of approximately $35 million will be recorded at lease commencement, which is expected to be in the third quarter of fiscal 2021. The components of lease costs were as follows (in millions):
|  | Year Ended September 30, 2020 |
Operating lease cost |  | $ | 57.4 |
Variable lease cost |  |  | 46.1 |
Short-term lease cost |  |  | 8.4 |
Supplemental information related to leases was as follows (in millions):
|  |  |  | September 30, 2020 |
|  | Balance Sheet Classification |  | Finance leases |  |  | Operating leases |  |  | Total |
Lease right of use assets |  | Other long-term assets |  | $ | 13.2 |  |  | $ | 149.0 |  |  | $ | 162.2 |
Current lease liabilities |  | Other current liabilities |  |  | 3.6 |  |  |  | 43.5 |  |  |  | 47.1 |
Long-term lease liabilities |  | Other long-term liabilities |  |  | 9.7 |  |  |  | 109.1 |  |  |  | 118.8 |
Weighted average remaining lease term |  |  |  | 4.0 years |  |  | 5.5 years |  |  |  |  |
Weighted average discount rates |  |  |  |  | 2.4 | % |  |  | 2.9 | % |  |  |  |
The table below presents the right of use asset balance for operating leases disaggregated by segment and type of lease (in millions):
|  | September 30, 2020 |
|  | Access Equipment |  |  | Defense |  |  | Fire & Emergency |  |  | Commercial |  |  | Corporate and intersegment eliminations |  |  | Total |
Real estate leases |  | $ | 61.4 |  |  | $ | 28.2 |  |  | $ | 6.5 |  |  | $ | 17.9 |  |  | $ | 7.0 |  |  | $ | 121.0 |
Equipment leases |  |  | 7.3 |  |  |  | 4.2 |  |  |  | 2.2 |  |  |  | 1.9 |  |  |  | 12.4 |  |  |  | 28.0 |
|  | $ | 68.7 |  |  | $ | 32.4 |  |  | $ | 8.7 |  |  | $ | 19.8 |  |  | $ | 19.4 |  |  | $ | 149.0 |
Maturities of operating lease liabilities at September 30, 2020 and minimum payments for operating leases (under ASC 842) having initial or remaining non-cancelable terms in excess of one year were as follows (in millions):
Amounts due in |  |  |  |
2021 |  | $ | 47.7 |
2022 |  |  | 34.9 |
2023 |  |  | 23.7 |
2024 |  |  | 16.0 |
2025 |  |  | 11.5 |
Thereafter |  |  | 31.3 |
Total lease payments |  |  | 165.1 |
Less: imputed interest |  |  | (12.5 | )
Present value of lease liability |  | $ | 152.6 |
At September 30, 2019, future minimum operating lease payments (under ASC 840) were as follows (in millions):
Amounts due in |  |  |  |
2020 |  | $ | 34.0 |
2021 |  |  | 26.7 |
2022 |  |  | 15.9 |
2023 |  |  | 11.3 |
2024 |  |  | 7.1 |
Thereafter |  |  | 11.7 |

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- References No definition available. + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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