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Leases | 6 Months Ended
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Mar. 29, 2020
Leases [Abstract] |
Leases | NOTE 11 – LEASES The Company has leases primarily pertaining to manufacturing facilities, distribution centers, office space, warehouses, automobiles, machinery, computer and office equipment that expire at various times through February 28, 2047. We have identified embedded operating leases within certain logistic agreements for warehouses and IT services arrangements and recognized assets identified in the arrangements as part of operating ROU assets on the Company’s Condensed Consolidated Statement of Financial Position as of March 29, 2020. We elected to exclude certain supply chain contracts that contain embedded leases for manufacturing facilities or dedicated manufacturing lines from our ROU asset and liability calculation based on the insignificant impact to our financial statements. The following is a summary of the Company’s leases recognized on the Company’s Condensed Consolidated Statement of Financial Position as of March 29, 2020:
(in millions) |  | Line Item |  | March 29, 2020
Assets |  |  |  |  |
Operating |  | Operating lease assets |  | $ | 93.6
Finance |  | Property, plant and equipment, net |  |  | 139.0
Total leased assets |  |  |  | $ | 232.6
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating |  | Other current liabilities |  | $ | 19.6
Finance |  | Current portion of long-term debt |  |  | 10.0
Long-term |  |  |  |  |
Operating |  | Long-term operating lease liabilities |  |  | 79.7
Finance |  | Long-term debt, net of current portion |  |  | 153.0
Total lease liabilities |  |  |  | $ | 262.3
‎ NOTE 11 – LEASES (continued) As of March 29, 2020, we have operating leases with an obligation and corresponding ROU assets of $1.7 million that was not recognized and will commence in April, 20 20. The Company records its operating lease and amortization of finance lease ROU assets within Cost of Goods Sold or Operating Expenses in the Condensed Consolidated Statement of Income depending on the nature and use of the underlying asset. The Company records its finance interest cost within interest expense in the Condensed Consolidated Statement of Income. The components of lease costs recognized in the Condensed Consolidated Statement of Income for the three and six month periods ending March 29, 2020 are as follows:
|  | Three Month Period Ended |  | Six Month Period Ended
(in millions) |  | March 29, 2020 |  | March 29, 2020
Operating lease cost |  | $ | 6.1 |  | $ | 12.6
Finance lease cost |  |  |  |  |  |
Amortization of leased assets |  |  | 3.4 |  |  | 7.0
Interest on lease liability |  |  | 2.2 |  |  | 4.5
Variable lease cost |  |  | 3.3 |  |  | 5.8
Total lease cost |  | $ | 15.0 |  | $ | 29.9
During the three month and six month periods ended March 29, 2020, the Company recognized income attributable to leases and sub-leases of $0.5 million and $1.0 million, respectively, including $0.3 million and $0.6 million, respectively, from the sublease of the Company’s Corporate Headquarters in Middleton, Wisconsin with a related party, Energizer. Income from leases and sub-leases is recognized as Other Non-Operating Income on the Condensed Consolidated Statement of Income. The following is a summary of the Company’s cash paid for amounts included in the measurement of lease liabilities recognized in the Condensed Consolidated Statement of Cash Flow, including supplemental non-cash activity related to operating leases, for the three and six month periods ending March 29, 2020:
|  | Three Month Period Ended |  | Six Month Period Ended
(in millions) |  | March 29, 2020 |  | March 29, 2020
Operating cash flow from operating leases |  | $ | 5.4 |  | $ | 11.8
Operating cash flows from finance leases |  |  | 2.3 |  |  | 4.6
Financing cash flows from finance leases |  |  | 3.5 |  |  | 6.9
Supplemental non-cash flow disclosure |  |  |  |  |  |
Acquisition of operating lease asset through lease obligations |  |  | 1.8 |  |  | 4.3
The following is a summary of weighted-average lease term and discount rate at March 29, 2020:
Weighted average remaining lease term |  |  |
Operating leases |  | 6.4 | years
Finance leases |  | 15.7 | years
Weighted average discount rate |  |  |
Operating leases |  | 4.57 | %
Finance leases |  | 5.59 | %
At March 29, 2020, future lease payments under operating and finance leases were as follows:
(in millions) |  | Finance Leases |  | Operating Leases
2020 remaining balance |  | $ | 8.8 |  | $ | 11.9
2021 |  |  | 20.8 |  |  | 23.2
2022 |  |  | 17.6 |  |  | 18.8
2023 |  |  | 16.5 |  |  | 16.9
2024 |  |  | 16.2 |  |  | 10.6
Thereafter |  |  | 180.6 |  |  | 35.0
Total lease payments |  |  | 260.5 |  |  | 116.4
Amount representing interest |  |  | (97.5) |  |  | (17.1)
Total minimum lease payments |  | $ | 163.0 |  | $ | 99.3
As of September 30, 2019, minimum commitments under the Company’s leases, as required under prior lease guidance, were as follows:
(in millions) |  | Finance Leases |  | Operating Leases
2020 | $ | 17.5 |  | $ | 25.0
2021 |  |  | 19.7 |  |  | 23.2
2022 |  |  | 16.5 |  |  | 20.6
2023 |  |  | 15.5 |  |  | 17.8
2024 |  |  | 15.4 |  |  | 10.8
Thereafter |  |  | 179.9 |  |  | 37.5
Total lease payments |  |  | 264.5 |  |  | 134.9
Amount representing interest |  |  | (98.9) |  |  | —
Total minimum lease payments |  | $ | 165.6 |  | $ | 134.9

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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://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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