XML 55 R26.htm IDEA: XBRL DOCUMENT
v3.22.2.2

LEASES | 12 Months Ended
--- | ---
Sep. 30, 2022
Leases [Abstract] |
LEASES | LEASES The Company has leases primarily pertaining to manufacturing facilities, distribution centers, office space, warehouses, automobiles, machinery, computers, and office equipment that expire at various times through June 2035. We have embedded operating leases within certain third-party logistic agreements for certain warehousing and information technology services arrangements and recognized right of use assets identified in the arrangements as part of Operating Lease Assets on the Company’s Consolidated Statement of Financial Position. 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 consolidated financial statements. The following is a summary of the Company’s leases recognized on the Company’s Consolidated Statement of Financial Position as of September 30, 2022 and 2021:
(in millions) |  | Line Item |  | 2022 |  | 2021
Assets |  |  |  |  |  |
Operating |  | Operating lease assets |  | $ | 82.5 |  |  | $ | 56.5 |
Finance |  | Property, plant and equipment, net |  | 73.4 |  |  | 84.2 |
Total leased assets |  |  |  | $ | 155.9 |  |  | $ | 140.7 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating |  | Other current liabilities |  | $ | 25.8 |  |  | $ | 17.4 |
Finance |  | Current portion of long-term debt |  | 8.3 |  |  | 7.9 |
Long-term |  |  |  |  |  |
Operating |  | Long-term operating lease liabilities |  | 56.0 |  |  | 44.5 |
Finance |  | Long-term debt, net of current portion |  | 84.4 |  |  | 94.0 |
Total lease liabilities |  |  |  | $ | 174.5 |  |  | $ | 163.8 |
As of September 30, 2022, the Company had no significant commitments related to leases executed that have not yet commenced. The Company records its operating lease and amortization of finance lease ROU assets within Cost of Goods Sold or Operating Expenses in the 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 Consolidated Statement of Income. The components of lease costs recognized in the Consolidated Statement of Income for the year ended September 30, 2022, 2021, and 2020 are as follows:
(in millions) |  | 2022 |  | 2021 |  | 2020
Operating lease cost |  | $ | 26.3 |  |  | $ | 19.8 |  |  | $ | 15.6 |
Finance lease cost |  |  |  |  |  |
Amortization of leased assets |  | 10.5 |  |  | 11.3 |  |  | 11.8 |
Interest on lease liability |  | 5.2 |  |  | 5.3 |  |  | 5.7 |
Variable lease cost |  | 10.8 |  |  | 9.8 |  |  | 9.8 |
Total lease cost |  | $ | 52.8 |  |  | $ | 46.2 |  |  | $ | 42.9 |
During the year ended September 30, 2022, 2021, and 2020 the Company recognized income attributable to leases and sub-leases of $2.7 million, $2.3 million, and $2.1 million, respectively. Income from leases and sub-leases is recognized as Other Non-Operating Income on the 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 Consolidated Statement of Cash Flow, including supplemental non-cash activity related to operating leases, for the year ended September 30, 2022, 2021, and 2020:
(in millions) |  | 2022 |  | 2021 |  | 2020
Operating cash flow from operating leases |  | $ | 25.3 |  |  | $ | 20.7 |  |  | $ | 16.1 |
Operating cash flows from finance leases |  | 5.1 |  |  | 5.4 |  |  | 5.7 |
Financing cash flows from finance leases |  | 8.9 |  |  | 12.0 |  |  | 10.6 |
Supplemental non-cash flow disclosure |  |  |  |  |  |
Acquisition of operating lease asset through lease obligations |  | 30.4 |  |  | 15.3 |  |  | 23.6 |
The following is a summary of weighted-average lease term and discount rate at September 30, 2022 and 2021:
|  | 2022 |  | 2021
Weighted average remaining lease term |  |  |  |
Operating leases |  | 4.5 years |  | 4.6 years
Finance leases |  | 9.7 years |  | 10.4 years
Weighted average discount rate |  |  |  |
Operating leases |  | 3.8 | % |  | 4.3 | %
Finance leases |  | 5.1 | % |  | 4.9 | %
At September 30, 2022, future lease payments under operating and finance leases were as follows:
(in millions) |  | Finance Leases |  | Operating Leases
2023 |  | $ | 12.5 |  |  | $ | 28.4 |
2024 |  | 13.2 |  |  | 18.5 |
2025 |  | 11.9 |  |  | 14.8 |
2026 |  | 11.6 |  |  | 10.2 |
2027 |  | 11.7 |  |  | 6.6 |
Thereafter |  | 57.9 |  |  | 11.4 |
Total lease payments |  | 118.8 |  |  | 89.9 |
Amount representing interest |  | (26.1) |  |  | (8.1) |
Total minimum lease payments |  | $ | 92.7 |  |  | $ | 81.8 |
LEASES | LEASES The Company has leases primarily pertaining to manufacturing facilities, distribution centers, office space, warehouses, automobiles, machinery, computers, and office equipment that expire at various times through June 2035. We have embedded operating leases within certain third-party logistic agreements for certain warehousing and information technology services arrangements and recognized right of use assets identified in the arrangements as part of Operating Lease Assets on the Company’s Consolidated Statement of Financial Position. 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 consolidated financial statements. The following is a summary of the Company’s leases recognized on the Company’s Consolidated Statement of Financial Position as of September 30, 2022 and 2021:
(in millions) |  | Line Item |  | 2022 |  | 2021
Assets |  |  |  |  |  |
Operating |  | Operating lease assets |  | $ | 82.5 |  |  | $ | 56.5 |
Finance |  | Property, plant and equipment, net |  | 73.4 |  |  | 84.2 |
Total leased assets |  |  |  | $ | 155.9 |  |  | $ | 140.7 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating |  | Other current liabilities |  | $ | 25.8 |  |  | $ | 17.4 |
Finance |  | Current portion of long-term debt |  | 8.3 |  |  | 7.9 |
Long-term |  |  |  |  |  |
Operating |  | Long-term operating lease liabilities |  | 56.0 |  |  | 44.5 |
Finance |  | Long-term debt, net of current portion |  | 84.4 |  |  | 94.0 |
Total lease liabilities |  |  |  | $ | 174.5 |  |  | $ | 163.8 |
As of September 30, 2022, the Company had no significant commitments related to leases executed that have not yet commenced. The Company records its operating lease and amortization of finance lease ROU assets within Cost of Goods Sold or Operating Expenses in the 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 Consolidated Statement of Income. The components of lease costs recognized in the Consolidated Statement of Income for the year ended September 30, 2022, 2021, and 2020 are as follows:
(in millions) |  | 2022 |  | 2021 |  | 2020
Operating lease cost |  | $ | 26.3 |  |  | $ | 19.8 |  |  | $ | 15.6 |
Finance lease cost |  |  |  |  |  |
Amortization of leased assets |  | 10.5 |  |  | 11.3 |  |  | 11.8 |
Interest on lease liability |  | 5.2 |  |  | 5.3 |  |  | 5.7 |
Variable lease cost |  | 10.8 |  |  | 9.8 |  |  | 9.8 |
Total lease cost |  | $ | 52.8 |  |  | $ | 46.2 |  |  | $ | 42.9 |
During the year ended September 30, 2022, 2021, and 2020 the Company recognized income attributable to leases and sub-leases of $2.7 million, $2.3 million, and $2.1 million, respectively. Income from leases and sub-leases is recognized as Other Non-Operating Income on the 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 Consolidated Statement of Cash Flow, including supplemental non-cash activity related to operating leases, for the year ended September 30, 2022, 2021, and 2020:
(in millions) |  | 2022 |  | 2021 |  | 2020
Operating cash flow from operating leases |  | $ | 25.3 |  |  | $ | 20.7 |  |  | $ | 16.1 |
Operating cash flows from finance leases |  | 5.1 |  |  | 5.4 |  |  | 5.7 |
Financing cash flows from finance leases |  | 8.9 |  |  | 12.0 |  |  | 10.6 |
Supplemental non-cash flow disclosure |  |  |  |  |  |
Acquisition of operating lease asset through lease obligations |  | 30.4 |  |  | 15.3 |  |  | 23.6 |
The following is a summary of weighted-average lease term and discount rate at September 30, 2022 and 2021:
|  | 2022 |  | 2021
Weighted average remaining lease term |  |  |  |
Operating leases |  | 4.5 years |  | 4.6 years
Finance leases |  | 9.7 years |  | 10.4 years
Weighted average discount rate |  |  |  |
Operating leases |  | 3.8 | % |  | 4.3 | %
Finance leases |  | 5.1 | % |  | 4.9 | %
At September 30, 2022, future lease payments under operating and finance leases were as follows:
(in millions) |  | Finance Leases |  | Operating Leases
2023 |  | $ | 12.5 |  |  | $ | 28.4 |
2024 |  | 13.2 |  |  | 18.5 |
2025 |  | 11.9 |  |  | 14.8 |
2026 |  | 11.6 |  |  | 10.2 |
2027 |  | 11.7 |  |  | 6.6 |
Thereafter |  | 57.9 |  |  | 11.4 |
Total lease payments |  | 118.8 |  |  | 89.9 |
Amount representing interest |  | (26.1) |  |  | (8.1) |
Total minimum lease payments |  | $ | 92.7 |  |  | $ | 81.8 |

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 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 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration