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Leases (Notes) | 3 Months Ended
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Dec. 31, 2019
Leases [Abstract] |
Leases of Lessee Disclosure [Text Block] | Note 2 – Leases The Company currently leases office space under non-cancelable operating leases with third parties as of December 31, 2019. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Certain office space leases include one or more options to renew, with renewal terms that can extend the lease term from three to ten years, and some of which include the Company’s option to terminate the leases within two years of the balance sheet date. The Company has not considered any renewal options in the lease terms of its office space leases as the Company does not believe it is reasonably certain that any of the rights will be exercised. In determining the term of certain office space leases, the Company has not included the periods covered by an option to terminate if the Company believes it is reasonably certain to do so. As the office space leases do not provide an implicit rate, the Company applies a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company applied a collateralized incremental borrowing rate as of October 1, 2019 for operating leases that commenced prior to that date. For office space leases executed by subsidiaries, including foreign subsidiaries, the Company has applied the incremental borrowing rate of the parent company. The Company believes this is a reasonable approach as its subsidiaries either do not have their own treasury functions or the credit facilities available to its subsidiaries do not permit the financing of right-of-use assets. Additionally, in certain instances, the parent company provides a guarantee of the lease payments to the lessor under office space leases executed by its subsidiaries. As such, the Company believes that the pricing of subsidiary leases is more significantly influenced by the credit standing of the parent company than that of its subsidiaries. Certain office space leases contain variable lease payments related to fair market rent adjustments and local inflation index measures. The Company estimates variable lease payments based upon information available at the lease commencement date in determining the present value of lease payments. The Company applied information available as of October 1, 2019 for operating leases that commenced prior to that date. The Company has elected to not separate lease components from nonlease components for all office space leases. The Company does not have any financing leases as of December 31, 2019. Operating lease expense is recognized on a straight-line basis over the lease term and is reported within ‘occupancy and equipment rental’ on the condensed consolidated statement of income. As of December 31, 2019, the Company recorded operating lease right-of-use assets and operating lease liabilities of $33.1 million and $36.2 million, respectively. The following table presents operating lease costs and other information as of and for the three months ended December 31, 2019 (in millions, except as stated):
Operating lease costs (1) | $ | 3.5 |
Lease term and discount rate information: |
Weighted average remaining lease term (years) | 4.39 |
Weighted average discount rate | 5.1 | %
Supplemental cash flow information and non-cash activity: |
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 2.7 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 34.6 |
(1) Includes short-term leases and variable lease costs, which are immaterial. The maturities of the lease liabilities are as follows as of December 31, 2019 (in millions):
Remainder of 2020 | $ | 8.5 |
2021 | 10.4 |
2022 | 7.7 |
2023 | 6.2 |
2024 | 4.4 |
After 2024 | 3.0 |
Total lease payments (1) | 40.2 |
Less: interest | 4.0 |
Present value of lease liabilities | $ | 36.2 |
(1) Total lease payments excludes $80.9 million of legally binding lease payments for leases signed and that will commence after December 31, 2019. In accordance with the disclosure requirements for the adoption of Topic 842, the Company is presenting its operating lease commitment table as of September 30, 2019, which was previously disclosed in Note 12 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2019 (in millions):
2020 | 11.2 |
2021 | 9.9 |
2022 | 7.5 |
2023 | 6.2 |
2024 | 5.8 |
Thereafter | 2.6 |
| 43.2 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + 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 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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