XML 51 R35.htm IDEA: XBRL DOCUMENT
v3.20.2

Leases, Codification Topic 842 | 12 Months Ended
--- | ---
Sep. 30, 2020
Leases [Abstract] |
Leases of Lessee Disclosure | Leases We adopted the new leasing standard utilizing the modified retrospective approach on October 1, 2019. Adoption of the new standard resulted in an increase to total assets and liabilities due to the recording of lease right-of-use assets (“ROU”) and lease liabilities related to our operating lease portfolio. We elected the package of three practical expedients for transition, which include the carry forward of our leases without reassessing whether any contracts are leases or contain leases, lease classification and initial direct costs and applying hindsight when determining the lease term and when assessing impairment of right-of-use assets at the adoption date. This allows us to update our assessments according to new information and changes in facts and circumstances that have occurred since lease inception. Presentation of Leases We lease certain office, warehouse, manufacturing, distribution, and research and development facilities and equipment under operating leases. Our leases have remaining lease terms of up to 13 years. The terms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we have elected the practical expedient to account for any non-lease components in the contract together with the related lease component in the same unit of account. ROU assets and lease liabilities are recognized in our consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. As most of our operating leases do not provide an implicit rate, we apply our incremental borrowing rate to determine the present value of remaining lease payments. Our incremental borrowing rate is determined based on information available at the commencement date of the lease. For all classes of leased assets, we have applied an accounting policy election to exclude short-term leases from recognition in our consolidated balance sheets. A short-term lease has a lease term of 12 months or less at the commencement date and does not include a purchase option that is reasonably certain of exercise. We recognize short-term lease expense in our condensed consolidated statements of operations on a straight-line basis over the lease term. Our short-term lease expense for the year ended September 30, 2020 and short-term lease commitments at September 30, 2020 are immaterial. We have certain lease contracts with terms and conditions that provide for variability in the payment amount based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our condensed consolidated statements of operations as the obligation is incurred. At September 30, 2020, any legally-binding minimum lease payments for operating leases signed but not yet commenced, subleases, leases that imposed significant restrictions or covenants, related party leases or sale-leaseback arrangements were immaterial. The components of lease cost are presented below.
| Year ended September 30,
| 2020 |  | 2019 |  | 2018
| (in millions)
Operating lease cost | $ | 6.3 |  |  | $ | 5.8 |  |  | $ | 6.4 |
Finance lease cost | 1.3 |  |  | 1.0 |  |  | 0.8 |
Total lease expense | $ | 7.6 |  |  | $ | 6.8 |  |  | $ | 7.2 |
Supplemental cash flow information related to leases for the year ended September 30, 2020 is presented below, in millions.
Operating cash used for operating leases | $ | 6.1 |
Financing cash used for finance leases | $ | 1.3 |
Supplemental information describing where lease-related assets and liabilities are reflected in the Condensed Consolidated Balance Sheet at September 30, 2020 is presented below, in millions.
Right of use assets: |  |  |  |
Operating leases |  | Other noncurrent assets |  | $ | 25.6 |
Finance leases |  | Plant, property and equipment |  | 2.5 |
Total right of use assets |  |  |  | $ | 28.1 |
Lease liabilities: |  |  |  |
Operating leases - current |  | Other current liabilities |  | $ | 4.0 |
Operating leases - noncurrent |  | Other noncurrent liabilities |  | 23.3 |
Finance leases - current |  | Current portion of long-term debt |  | 1.1 |
Finance leases - noncurrent |  | Long-term debt |  | 1.4 |
Total lease liabilities |  |  |  | $ | 29.8 |
Supplemental information related to lease terms and discount rates at September 30, 2020 is presented below.
Weighted-average remaining lease term (years): |
Operating leases | 7.87
Finance leases | 2.52
Weighted-average interest rate: |
Operating leases | 5.64 | %
Finance leases | 4.96 | %
Total lease liabilities at September 30, 2020 have scheduled maturities as follows:
| Operating Leases |  | Finance Leases
| (in millions)
2021 | $ | 5.5 |  |  | $ | 1.2 |
2022 | 4.8 |  |  | 0.9 |
2023 | 4.3 |  |  | 0.5 |
2024 | 4.1 |  |  | 0.1 |
2025 | 3.7 |  |  | — |
Thereafter | 12.5 |  |  | — |
Total lease payments | 34.9 |  |  | 2.7 |
Less: imputed interest | 7.6 |  |  | 0.2 |
Present value of lease liabilities | $ | 27.3 |  |  | $ | 2.5 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration