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LEASES
 12 Months Ended
Sep. 30, 2025
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 warehousing and information technology services arrangements and recognized right of use assets identified in the arrangements as part of Operating Lease Assets on the Consolidated Statements of Financial Position. We elected to exclude certain supply chain contracts that may 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 leases recognized on the Consolidated Statements of Financial Position as of September 30, 2025 and 2024:
(in millions)Line Item20252024
Assets
OperatingOperating lease assets$73.5 $101.9 
FinanceProperty, plant and equipment, net56.7 61.0 
Total leased assets$130.2 $162.9 
Liabilities
Current
OperatingShort-term operating lease liabilities$31.8 $31.3 
FinanceCurrent portion of long-term debt11.7 9.4 
Long-term
OperatingLong-term operating lease liabilities54.5 87.0 
FinanceLong-term debt, net of current portion73.6 72.2 
Total lease liabilities$171.6 $199.9 
As of September 30, 2025, the Company has unrecognized commitments of approximately $14.0 million related to a distribution center with a third party logistics service provider that has not yet commenced. The lease is expected to commence in February 2026.
The components of lease costs recognized in the Consolidated Statements of Income for the year ended September 30, 2025, 2024, and 2023 are as follows:
(in millions)202520242023
Operating lease cost$33.3 $34.6 $37.0 
Finance lease cost
Amortization of leased assets10.0 10.3 10.2 
Interest on lease liability4.4 4.5 4.8 
Variable lease cost15.1 13.0 12.4 
Total lease cost$62.8 $62.4 $64.4 
During the year ended September 30, 2025, the Company recognized a $7.8 million impairment charge on its finance lease for office space in Middleton, WI following the Company's exit from transition service agreements from previous divestitures and lack of sufficient sublease income to mitigate outgoing cash flow on unused components. During the year ended September 30, 2024, the Company recognized a $5.1 million impairment charge on a right of use operating lease asset for a HPC distribution center having a maturity of February 2025, due to the early exit of operations from the facility and the inability to sub-lease to a third-party prior to the maturity. During the year ended September 30, 2023, the Company recognized a $5.2 million impairment charge on a right of use operating lease asset for a GPC warehouse having a maturity date of December 2029, due to the exit of operations from the facility and the intention to sub-lease to a third-party. The impairments were measured using projected discounted cash flow for the facility, including assumed sub-lease income, when applicable, at sub-lease rental rates comparable to current market conditions and included within Selling, General & Administrative Expense on the Consolidated Statements of Income.
The following summarizes income attributable to sub-leases for the years ended September 30, 2025, 2024, and 2023, respectively, recognized as Other Non-Operating Expense, Net on the Consolidated Statements of Income.
(in millions)202520242023
Sub-lease income$2.9 $2.4 $2.4 
NOTE 10 LEASES (continued)
The following is a summary of cash paid for amounts included in the measurement of lease liabilities recognized in the Consolidated Statements of Cash Flow, including supplemental non-cash activity related to operating leases, for the years ended September 30, 2025, 2024, and 2023:
(in millions)202520242023
Operating cash flow from operating leases$36.0 $35.5 $30.3 
Operating cash flows from finance leases4.5 4.5 4.8 
Financing cash flows from finance leases10.8 10.1 9.5 
Supplemental non-cash flow disclosure
Acquisition of operating lease asset through lease obligations5.4 25.2 66.9 
The following is a summary of weighted-average lease term and discount rate at September 30, 2025 and 2024.
20252024
Weighted average remaining lease term
Operating leases3.0 years4.0 years
Finance leases6.8 years8.0 years
Weighted average discount rate
Operating leases6.3 % 6.0 %
Finance leases5.6 % 5.4 %
At September 30, 2025, future lease payments under operating and finance leases were as follows.
(in millions)Finance LeasesOperating Leases
2026$15.6 $36.1 
202716.4 28.3 
202816.1 23.8 
202915.5 5.6 
203012.3 0.6 
Thereafter26.2 — 
Total lease payments102.1 94.4 
Amount representing interest16.8 8.1 
Total minimum lease payments$85.3 $86.3 
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 warehousing and information technology services arrangements and recognized right of use assets identified in the arrangements as part of Operating Lease Assets on the Consolidated Statements of Financial Position. We elected to exclude certain supply chain contracts that may 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 leases recognized on the Consolidated Statements of Financial Position as of September 30, 2025 and 2024:
(in millions)Line Item20252024
Assets
OperatingOperating lease assets$73.5 $101.9 
FinanceProperty, plant and equipment, net56.7 61.0 
Total leased assets$130.2 $162.9 
Liabilities
Current
OperatingShort-term operating lease liabilities$31.8 $31.3 
FinanceCurrent portion of long-term debt11.7 9.4 
Long-term
OperatingLong-term operating lease liabilities54.5 87.0 
FinanceLong-term debt, net of current portion73.6 72.2 
Total lease liabilities$171.6 $199.9 
As of September 30, 2025, the Company has unrecognized commitments of approximately $14.0 million related to a distribution center with a third party logistics service provider that has not yet commenced. The lease is expected to commence in February 2026.
The components of lease costs recognized in the Consolidated Statements of Income for the year ended September 30, 2025, 2024, and 2023 are as follows:
(in millions)202520242023
Operating lease cost$33.3 $34.6 $37.0 
Finance lease cost
Amortization of leased assets10.0 10.3 10.2 
Interest on lease liability4.4 4.5 4.8 
Variable lease cost15.1 13.0 12.4 
Total lease cost$62.8 $62.4 $64.4 
During the year ended September 30, 2025, the Company recognized a $7.8 million impairment charge on its finance lease for office space in Middleton, WI following the Company's exit from transition service agreements from previous divestitures and lack of sufficient sublease income to mitigate outgoing cash flow on unused components. During the year ended September 30, 2024, the Company recognized a $5.1 million impairment charge on a right of use operating lease asset for a HPC distribution center having a maturity of February 2025, due to the early exit of operations from the facility and the inability to sub-lease to a third-party prior to the maturity. During the year ended September 30, 2023, the Company recognized a $5.2 million impairment charge on a right of use operating lease asset for a GPC warehouse having a maturity date of December 2029, due to the exit of operations from the facility and the intention to sub-lease to a third-party. The impairments were measured using projected discounted cash flow for the facility, including assumed sub-lease income, when applicable, at sub-lease rental rates comparable to current market conditions and included within Selling, General & Administrative Expense on the Consolidated Statements of Income.
The following summarizes income attributable to sub-leases for the years ended September 30, 2025, 2024, and 2023, respectively, recognized as Other Non-Operating Expense, Net on the Consolidated Statements of Income.
(in millions)202520242023
Sub-lease income$2.9 $2.4 $2.4 
NOTE 10 LEASES (continued)
The following is a summary of cash paid for amounts included in the measurement of lease liabilities recognized in the Consolidated Statements of Cash Flow, including supplemental non-cash activity related to operating leases, for the years ended September 30, 2025, 2024, and 2023:
(in millions)202520242023
Operating cash flow from operating leases$36.0 $35.5 $30.3 
Operating cash flows from finance leases4.5 4.5 4.8 
Financing cash flows from finance leases10.8 10.1 9.5 
Supplemental non-cash flow disclosure
Acquisition of operating lease asset through lease obligations5.4 25.2 66.9 
The following is a summary of weighted-average lease term and discount rate at September 30, 2025 and 2024.
20252024
Weighted average remaining lease term
Operating leases3.0 years4.0 years
Finance leases6.8 years8.0 years
Weighted average discount rate
Operating leases6.3 % 6.0 %
Finance leases5.6 % 5.4 %
At September 30, 2025, future lease payments under operating and finance leases were as follows.
(in millions)Finance LeasesOperating Leases
2026$15.6 $36.1 
202716.4 28.3 
202816.1 23.8 
202915.5 5.6 
203012.3 0.6 
Thereafter26.2 — 
Total lease payments102.1 94.4 
Amount representing interest16.8 8.1 
Total minimum lease payments$85.3 $86.3