XML 23 R13.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Financing receivables, net | 3 Months Ended
--- | ---
Dec. 31, 2024
Financing receivables, net |
Financing Receivables, net | 5. Financing receivables, net In the TS U.S. division, financing of goods and services is offered to certain customers. This involves amounts due reflecting sales whose payment terms exceed one year. This financing is separate from agreements with a leasing component, see Note 7 Leases for financing through leases. Determining whether to offer financing involves looking at the customer’s payment history, economic conditions, and capacity to pay. The Company assigns an internal risk rating to each customer at inception, which groups customers into a portfolio based off this risk rating. A risk rating is assigned by analyzing a customer’s financial statements and the latest Fitch rating if publicly available as well as recent payment activity. The credit quality of customers is continually monitored by these items. Accounts rated low risk have the equivalent of a Fitch rating of BBB– or higher, moderate risk accounts have the equivalent of BB, and high risk accounts have the equivalent of B. The risk characteristics of each customer are consistent with the Fitch rating or equivalent, which are defined by Fitch as the following: 'BBB' ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity. ’BB' ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists that supports the servicing of financial commitments. ‘B’ ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment. Financing receivables, net carry an average weighted interest rate of 9.6%, which reflects the approximate interest rate consistent with a separate financing transaction with the customer at the inception of the agreement. The amount of interest income earned from sales whose payment terms exceed one year for the three months ended December 31, 2024 and 2023 was $141 thousand and $193 thousand, respectively. Interest income from these agreements is recorded in Other income (expense), net on the Condensed Consolidated Statements of Operations. ​ ​ ​ The following table presents the components of the Company’s Financing receivables, net segregated by portfolio (risk rating) for the periods indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | As of December 31, 2024 | ​ | As of September 30, 2024
​ | ​ | Risk Rating | ​ | ​ | ​ | ​ | Risk Rating | ​ | ​ | ​
​ | ​ | ​ | Low | ​ | ​ | Moderate | ​ | ​ | High | ​ | ​ | Total | ​ | ​ | Low | ​ | ​ | Moderate | ​ | ​ | High | ​ | ​ | Total
​ | ​ | (Amounts in thousands)
Financing receivables, net: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financing receivables, gross | ​ | $ | 4,794 | ​ | $ | 780 | ​ | $ | 140 | ​ | $ | 5,714 | ​ | $ | 7,153 | ​ | $ | 874 | ​ | $ | - | ​ | $ | 8,027
Unearned interest income | ​ | ​ | (480) | ​ | ​ | (66) | ​ | ​ | (14) | ​ | ​ | (560) | ​ | ​ | (599) | ​ | ​ | (85) | ​ | ​ | - | ​ | ​ | (684)
Allowance for credit losses | ​ | ​ | (21) | ​ | ​ | (8) | ​ | ​ | (6) | ​ | ​ | (35) | ​ | ​ | (27) | ​ | ​ | (10) | ​ | ​ | - | ​ | ​ | (37)
Financing receivables, net | ​ | $ | 4,293 | ​ | $ | 706 | ​ | $ | 120 | ​ | $ | 5,119 | ​ | $ | 6,527 | ​ | $ | 779 | ​ | $ | - | ​ | $ | 7,306
Short-term | ​ | $ | 2,017 | ​ | $ | 424 | ​ | $ | 37 | ​ | $ | 2,478 | ​ | $ | 4,013 | ​ | $ | 371 | ​ | $ | - | ​ | $ | 4,384
Long-term | ​ | $ | 2,276 | ​ | $ | 282 | ​ | $ | 83 | ​ | $ | 2,641 | ​ | $ | 2,514 | ​ | $ | 408 | ​ | $ | - | ​ | $ | 2,922
​ The following table presents the changes in Allowance for credit losses for Financing receivables, net for the periods indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended
​ | ​ | December 31, 2024 | ​ | December 31, 2023
​ | ​ | Risk Rating | ​ | ​ | ​ | ​ | Risk Rating | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Low |  | Moderate |  | High | ​ | Total |  | Low |  | Moderate | ​ | High |  | Total
​ | ​ | (Amounts in thousands)
Allowance for credit losses for financing receivables: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balances at beginning of the period | ​ | $ | 27 | ​ | ​ | 10 | ​ | ​ | - | ​ | $ | 37 | ​ | $ | - | ​ | $ | - | ​ | $ | - | ​ | $ | -
Adjustment for adoption of new accounting standard | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 27 | ​ | ​ | 55 | ​ | ​ | - | ​ | ​ | 82
(Credit) provision charged to Consolidated Statements of Operations | ​ | ​ | (6) | ​ | ​ | (2) | ​ | ​ | 6 | ​ | ​ | (2) | ​ | ​ | (11) | ​ | ​ | 6 | ​ | ​ | - | ​ | ​ | (5)
Balances at end of the period | ​ | $ | 21 | ​ | $ | 8 | ​ | $ | 6 | ​ | $ | 35 | ​ | $ | 16 | ​ | $ | 61 | ​ | $ | - | ​ | $ | 77
​ The Company recognizes an allowance for credit losses for financing receivables in an amount equal to the probable losses net of recoveries. A probability method for calculating credit losses is used based on historical data of defaults of Fitch ratings and length of time. Various factors are also assessed in the allowance for credit losses including internal historical data as well as macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios. Macroeconomic conditions include the level of gross domestic product (“GDP”) growth and unemployment rates, which directly correlate with our historical credit losses. The expense associated with the allowance for expected credit losses is recognized in Selling, general, and administrative expenses in the Consolidated Statements of Operations. Financing receivables whose payment terms exceed one year are placed on non-accrual status, meaning interest income stops being recorded, when the customer has a past due amount in excess of 30 days or reasonable doubt exists in collecting all interest and principal. A payment due in excess of 30 days is considered delinquent. If a payment is received for a receivable on non-accrual status the payment is first applied to interest and then principal. Recording interest income resumes once no reasonable doubt exists regarding collecting all interest and principal. There were no financing receivables placed on non-accrual status as of December 31, 2024 or September 30, 2024. ​ The following table presents Financing receivables, gross, including accrued interest, by credit quality indicator segregated by risk rating and year of origination as of December 31, 2024: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2024
​ | ​ | Fiscal year of origination | ​ | ​ | ​
Risk Rating |  | 2025 |  | 2024 |  | 2023 |  | 2021 |  | Total
​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
High | ​ | $ | 140 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 140
Moderate |  | ​ | — | ​ | ​ | 495 | ​ | ​ | 285 | ​ | ​ | — | ​ | $ | 780
Low |  |  | — | ​ | ​ | 2,600 | ​ | ​ | 1,884 | ​ | ​ | 310 | ​ | ​ | 4,794
Total |  | $ | 140 | ​ | $ | 3,095 | ​ | $ | 2,169 | ​ | $ | 310 | ​ | $ | 5,714
​ Contractual maturities of outstanding financing receivables are as follows: ​
​ | ​ | ​ | ​
Fiscal year ending September 30: |  | (Amounts in thousands)
2025 | ​ | $ | 2,418
2026 | ​ | ​ | 2,384
2027 | ​ | ​ | 854
2028 | ​ | ​ | 58
Total payments | ​ | $ | 5,714
Less: unearned interest income | ​ | ​ | (560)
Less: allowance for credit losses | ​ | ​ | (35)
Total, net of unearned interest income and allowance for credit losses | ​ | $ | 5,119
​

X
- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147481933/310-10-55-12A Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-42 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 44 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-44 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-20/tableOfContent + Details
Name: | us-gaap_FinancingReceivablesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration