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LEASES

3 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

LEASES

The Company leases certain property and equipment from third parties under various non-cancelable lease agreements, including industrial, commercial and office properties and equipment that support the management, manufacturing, distribution and research and development of products marketed and sold by the Company. The lease agreements generally require that the Company pay taxes, insurance and maintenance expenses related to the leased assets. At December 31, 2022, the Company had entered into operating leases that were yet to commence with a combined total expected lease liability of $49.8. From time to time, the Company will sublease portions of its facilities, resulting in sublease income. Sublease income and the related cash flows were not material to the condensed consolidated financial statements for the three months ended December 31, 2022 and January 1, 2022.

The Company leases certain vehicles (primarily cars and light trucks) under agreements that are cancellable after the first year, but typically continue on a month-to-month basis until canceled by the Company. The vehicle leases and certain other non-cancelable operating leases contain residual value guarantees that create a contingent obligation on the part of the Company to compensate the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. If all such vehicle leases had been canceled as of December 31, 2022, the Company’s residual value guarantee would have approximated $3.9.

Supplemental balance sheet information related to the Company’s leases was as follows:

			Balance Sheet Location						December 31, 2022						January 1, 2022						September 30, 2022
Operating leases:
Right-of-use assets			Other assets						$	281.2					$	294.4					$	288.9
Current lease liabilities			Other current liabilities						76.5						70.2						76.2
Non-current lease liabilities			Other liabilities						216.4						232.8						223.2
Total operating lease liabilities									$	292.9					$	303.0					$	299.4
Finance leases:
Right-of-use assets			Property, plant and equipment, net						$	16.4					$	29.8					$	26.4
Current lease liabilities			Current portion of debt						1.9						5.9						6.4
Non-current lease liabilities			Long-term debt						16.6						26.0						22.5
Total finance lease liabilities									$	18.5					$	31.9					$	28.9

Components of lease cost were as follows:

			Three Months Ended
			December 31, 2022						January 1, 2022
Operating lease cost (a)			$	22.2					$	20.9
Variable lease cost			6.5						9.7
Finance lease cost
Amortization of right-of-use assets			1.4						1.6
Interest on lease liabilities			0.3						0.3
Total finance lease cost			$	1.7					$	1.9

(a)Operating lease cost includes amortization of right-of-use assets of $19.0 and $17.6 for the three months ended December 31, 2022 and January 1, 2022, respectively. Short-term lease expense is excluded from operating lease cost and is not material.

Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows:

									Three Months Ended
															December 31, 2022						January 1, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net															$	22.2					$	20.2
Operating cash flows from finance leases															0.3						0.3
Financing cash flows from finance leases															1.3						1.4
Right-of-use assets obtained in exchange for lease obligations:
Operating leases															$	16.5					$	20.6

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows:

			December 31, 2022
Weighted-average remaining lease term (in years):
Operating leases			4.7
Finance leases			9.9
Weighted-average discount rate:
Operating leases			3.6		%
Finance leases			4.4		%

Maturities of lease liabilities by fiscal year for the Company’s leases as of December 31, 2022 were as follows:

Year						Operating Leases						Finance Leases
2023 (remainder of the year)						$	65.3					$	2.0
2024						80.7						2.6
2025						63.9						2.6
2026						44.1						2.2
2027						20.4						1.9
Thereafter						47.3						11.8
Total lease payments						321.7						23.1
Less: Imputed interest						(28.8)						(4.6)
Total lease liabilities						$	292.9					$	18.5

LEASES

LEASES

The Company leases certain property and equipment from third parties under various non-cancelable lease agreements, including industrial, commercial and office properties and equipment that support the management, manufacturing, distribution and research and development of products marketed and sold by the Company. The lease agreements generally require that the Company pay taxes, insurance and maintenance expenses related to the leased assets. At December 31, 2022, the Company had entered into operating leases that were yet to commence with a combined total expected lease liability of $49.8. From time to time, the Company will sublease portions of its facilities, resulting in sublease income. Sublease income and the related cash flows were not material to the condensed consolidated financial statements for the three months ended December 31, 2022 and January 1, 2022.

The Company leases certain vehicles (primarily cars and light trucks) under agreements that are cancellable after the first year, but typically continue on a month-to-month basis until canceled by the Company. The vehicle leases and certain other non-cancelable operating leases contain residual value guarantees that create a contingent obligation on the part of the Company to compensate the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the conclusion of the lease term. If all such vehicle leases had been canceled as of December 31, 2022, the Company’s residual value guarantee would have approximated $3.9.

Supplemental balance sheet information related to the Company’s leases was as follows:

			Balance Sheet Location						December 31, 2022						January 1, 2022						September 30, 2022
Operating leases:
Right-of-use assets			Other assets						$	281.2					$	294.4					$	288.9
Current lease liabilities			Other current liabilities						76.5						70.2						76.2
Non-current lease liabilities			Other liabilities						216.4						232.8						223.2
Total operating lease liabilities									$	292.9					$	303.0					$	299.4
Finance leases:
Right-of-use assets			Property, plant and equipment, net						$	16.4					$	29.8					$	26.4
Current lease liabilities			Current portion of debt						1.9						5.9						6.4
Non-current lease liabilities			Long-term debt						16.6						26.0						22.5
Total finance lease liabilities									$	18.5					$	31.9					$	28.9

Components of lease cost were as follows:

			Three Months Ended
			December 31, 2022						January 1, 2022
Operating lease cost (a)			$	22.2					$	20.9
Variable lease cost			6.5						9.7
Finance lease cost
Amortization of right-of-use assets			1.4						1.6
Interest on lease liabilities			0.3						0.3
Total finance lease cost			$	1.7					$	1.9

(a)Operating lease cost includes amortization of right-of-use assets of $19.0 and $17.6 for the three months ended December 31, 2022 and January 1, 2022, respectively. Short-term lease expense is excluded from operating lease cost and is not material.

Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows:

									Three Months Ended
															December 31, 2022						January 1, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net															$	22.2					$	20.2
Operating cash flows from finance leases															0.3						0.3
Financing cash flows from finance leases															1.3						1.4
Right-of-use assets obtained in exchange for lease obligations:
Operating leases															$	16.5					$	20.6

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows:

			December 31, 2022
Weighted-average remaining lease term (in years):
Operating leases			4.7
Finance leases			9.9
Weighted-average discount rate:
Operating leases			3.6		%
Finance leases			4.4		%

Maturities of lease liabilities by fiscal year for the Company’s leases as of December 31, 2022 were as follows:

Year						Operating Leases						Finance Leases
2023 (remainder of the year)						$	65.3					$	2.0
2024						80.7						2.6
2025						63.9						2.6
2026						44.1						2.2
2027						20.4						1.9
Thereafter						47.3						11.8
Total lease payments						321.7						23.1
Less: Imputed interest						(28.8)						(4.6)
Total lease liabilities						$	292.9					$	18.5

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI https://asc.fasb.org/subtopic&trid=77888251

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X

- 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 https://asc.fasb.org/subtopic&trid=77888251

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