XML 27 R13.htm IDEA: XBRL DOCUMENT v3.25.3
Leases
 12 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Leases Leases
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 eight years. The terms and conditions of our leases may include options to extend or terminate the lease early. These factors are considered at lease inception or at the time of the amendment 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.
Right-of-Use (“ROU”) assets and lease liabilities are recognized in our consolidated balance sheets at the lease commencement date based on the present value of the 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 our remaining lease payments. Our incremental borrowing rate is determined based on information available at the lease commencement date.
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 term of 12 months or less at the commencement date and does not include a purchase or extension option that is reasonably certain of exercise. We recognize short-term lease cost in our consolidated statements of operations on a straight-line basis over the lease term.
Our short-term lease cost for the year ended September 30, 2025 was $2.6 million. Short-term lease cost for the years ended September 30, 2024, and 2023 were immaterial. Our short-term lease commitments as of September 30, 2025, and 2024 are immaterial.
We have certain lease contracts with terms and conditions that include variable payments based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our consolidated statements of operations as the obligation is incurred.
As of September 30, 2025, any legally-binding minimum lease payments for operating leases signed but not yet commenced, subleases, or leases that impose significant restrictions or covenants, were immaterial. We did not have any related-party leases or sale-leaseback arrangements as of September 30, 2025, or September 30, 2024.
The components of lease cost are presented below:
Year ended September 30,
202520242023
(in millions)
Operating lease cost$7.5 $6.9 $6.3 
Finance lease cost1.3 0.9 1.1 
Total lease cost
$8.8 $7.8 $7.4 
Supplemental cash flow information related to leases is presented below:
Year ended September 30,
20252024
(in millions)
Operating cash used for operating leases$7.5 $7.0 
Financing cash used for finance leases$1.3 $0.9 
Supplemental information regarding our lease assets and liabilities is presented below:
September 30,
20252024
(in millions)
Right-of-use assets:
Operating leasesOther noncurrent assets$27.3 $26.9 
Finance leasesPlant, property and equipment4.1 2.7 
Total right-of-use assets $31.4 $29.6 
Lease liabilities:
Operating leases - currentOther current liabilities$6.4 $5.5 
Operating leases - noncurrentOther noncurrent liabilities22.0 22.5 
Finance leases - currentCurrent portion of long-term debt1.2 0.8 
Finance leases - noncurrentLong-term debt2.9 1.9 
Total lease liabilities$32.5 $30.7 
Supplemental information related to lease terms and discount rates is presented below.
Year ended September 30,
20252024
Weighted-average remaining lease term (years):
Operating leases5.516.14
Finance leases3.363.64
Weighted-average interest rate:
Operating leases5.44 %5.48 %
Finance leases7.24 %7.10 %

Scheduled maturities for our lease liabilities as of September 30, 2025 are as follows:
Operating LeasesFinance Leases
(in millions)
2026$7.8 $1.5 
20277.0 1.3 
20285.4 1.3 
20293.5 0.5 
20302.5 0.1 
Thereafter6.6 — 
Total lease payments32.8 4.7 
Less: imputed interest(4.4)(0.6)
Present value of lease liabilities$28.4 $4.1 
Leases Leases
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 eight years. The terms and conditions of our leases may include options to extend or terminate the lease early. These factors are considered at lease inception or at the time of the amendment 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.
Right-of-Use (“ROU”) assets and lease liabilities are recognized in our consolidated balance sheets at the lease commencement date based on the present value of the 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 our remaining lease payments. Our incremental borrowing rate is determined based on information available at the lease commencement date.
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 term of 12 months or less at the commencement date and does not include a purchase or extension option that is reasonably certain of exercise. We recognize short-term lease cost in our consolidated statements of operations on a straight-line basis over the lease term.
Our short-term lease cost for the year ended September 30, 2025 was $2.6 million. Short-term lease cost for the years ended September 30, 2024, and 2023 were immaterial. Our short-term lease commitments as of September 30, 2025, and 2024 are immaterial.
We have certain lease contracts with terms and conditions that include variable payments based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our consolidated statements of operations as the obligation is incurred.
As of September 30, 2025, any legally-binding minimum lease payments for operating leases signed but not yet commenced, subleases, or leases that impose significant restrictions or covenants, were immaterial. We did not have any related-party leases or sale-leaseback arrangements as of September 30, 2025, or September 30, 2024.
The components of lease cost are presented below:
Year ended September 30,
202520242023
(in millions)
Operating lease cost$7.5 $6.9 $6.3 
Finance lease cost1.3 0.9 1.1 
Total lease cost
$8.8 $7.8 $7.4 
Supplemental cash flow information related to leases is presented below:
Year ended September 30,
20252024
(in millions)
Operating cash used for operating leases$7.5 $7.0 
Financing cash used for finance leases$1.3 $0.9 
Supplemental information regarding our lease assets and liabilities is presented below:
September 30,
20252024
(in millions)
Right-of-use assets:
Operating leasesOther noncurrent assets$27.3 $26.9 
Finance leasesPlant, property and equipment4.1 2.7 
Total right-of-use assets $31.4 $29.6 
Lease liabilities:
Operating leases - currentOther current liabilities$6.4 $5.5 
Operating leases - noncurrentOther noncurrent liabilities22.0 22.5 
Finance leases - currentCurrent portion of long-term debt1.2 0.8 
Finance leases - noncurrentLong-term debt2.9 1.9 
Total lease liabilities$32.5 $30.7 
Supplemental information related to lease terms and discount rates is presented below.
Year ended September 30,
20252024
Weighted-average remaining lease term (years):
Operating leases5.516.14
Finance leases3.363.64
Weighted-average interest rate:
Operating leases5.44 %5.48 %
Finance leases7.24 %7.10 %

Scheduled maturities for our lease liabilities as of September 30, 2025 are as follows:
Operating LeasesFinance Leases
(in millions)
2026$7.8 $1.5 
20277.0 1.3 
20285.4 1.3 
20293.5 0.5 
20302.5 0.1 
Thereafter6.6 — 
Total lease payments32.8 4.7 
Less: imputed interest(4.4)(0.6)
Present value of lease liabilities$28.4 $4.1