v3.22.2.2
LEASES
 12 Months Ended
Sep. 30, 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 September 30, 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 consolidated financial statements for fiscal 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 September 30, 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 LocationSeptember 30, 2022September 30, 2021
Operating leases:
Right-of-use assetsOther assets$288.9 $293.0 
Current lease liabilitiesOther current liabilities76.2 66.4 
Non-current lease liabilitiesOther liabilities223.2 234.4 
Total operating lease liabilities$299.4 $300.8 
Finance leases:
Right-of-use assetsProperty, plant and equipment, net$26.4 $31.3 
Current lease liabilitiesCurrent portion of debt6.4 5.9 
Non-current lease liabilitiesLong-term debt22.5 27.5 
Total finance lease liabilities$28.9 $33.4 
Components of lease cost were as follows:
Year Ended September 30,
20222021
Operating lease cost (a)
$86.7 $70.3 
Variable lease cost35.9 29.4 
Finance lease cost
Amortization of right-of-use assets6.4 6.0 
Interest on lease liabilities1.2 1.4 
Total finance lease cost$7.6 $7.4 

(a)Operating lease cost includes amortization of ROU assets of $75.3 and $62.3 for fiscal 2022 and fiscal 2021, respectively. Short-term lease expense is excluded from operating lease cost and was $19.1 and $22.8 for fiscal 2022 and fiscal 2021, respectively.
Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows:
Year Ended September 30,
20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net$83.9 $66.9 
Operating cash flows from finance leases1.2 1.4 
Financing cash flows from finance leases5.9 5.3 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$71.9 $200.0 
Finance leases1.5 2.6 
Weighted-average remaining lease term and discount rate for the Company’s leases were as follows:
September 30, 2022
Weighted-average remaining lease term (in years):
Operating leases 4.9
Finance leases7.3
Weighted-average discount rate:
Operating leases3.5 %
Finance leases4.3 %
Maturities of lease liabilities by fiscal year for the Company’s leases as of September 30, 2022 were as follows:
YearOperating LeasesFinance Leases
2023$85.2 $7.5 
202478.0 7.5 
202561.2 3.3 
202642.2 2.2 
202718.9 1.9 
Thereafter40.5 11.8 
Total lease payments326.0 34.2 
Less: Imputed interest(26.6)(5.3)
Total lease liabilities$299.4 $28.9 
On September 21, 2022, the Company completed an asset sale-leaseback transaction relating to a facility in Vancouver, Washington. The Company received proceeds of $44.7, net of selling costs, and the asset had a carrying value of $36.7, resulting in a $8.0 gain on the transaction which was recorded in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations. The leaseback has a term of 3 years and is accounted for as an operating lease.
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 September 30, 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 consolidated financial statements for fiscal 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 September 30, 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 LocationSeptember 30, 2022September 30, 2021
Operating leases:
Right-of-use assetsOther assets$288.9 $293.0 
Current lease liabilitiesOther current liabilities76.2 66.4 
Non-current lease liabilitiesOther liabilities223.2 234.4 
Total operating lease liabilities$299.4 $300.8 
Finance leases:
Right-of-use assetsProperty, plant and equipment, net$26.4 $31.3 
Current lease liabilitiesCurrent portion of debt6.4 5.9 
Non-current lease liabilitiesLong-term debt22.5 27.5 
Total finance lease liabilities$28.9 $33.4 
Components of lease cost were as follows:
Year Ended September 30,
20222021
Operating lease cost (a)
$86.7 $70.3 
Variable lease cost35.9 29.4 
Finance lease cost
Amortization of right-of-use assets6.4 6.0 
Interest on lease liabilities1.2 1.4 
Total finance lease cost$7.6 $7.4 

(a)Operating lease cost includes amortization of ROU assets of $75.3 and $62.3 for fiscal 2022 and fiscal 2021, respectively. Short-term lease expense is excluded from operating lease cost and was $19.1 and $22.8 for fiscal 2022 and fiscal 2021, respectively.
Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows:
Year Ended September 30,
20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net$83.9 $66.9 
Operating cash flows from finance leases1.2 1.4 
Financing cash flows from finance leases5.9 5.3 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$71.9 $200.0 
Finance leases1.5 2.6 
Weighted-average remaining lease term and discount rate for the Company’s leases were as follows:
September 30, 2022
Weighted-average remaining lease term (in years):
Operating leases 4.9
Finance leases7.3
Weighted-average discount rate:
Operating leases3.5 %
Finance leases4.3 %
Maturities of lease liabilities by fiscal year for the Company’s leases as of September 30, 2022 were as follows:
YearOperating LeasesFinance Leases
2023$85.2 $7.5 
202478.0 7.5 
202561.2 3.3 
202642.2 2.2 
202718.9 1.9 
Thereafter40.5 11.8 
Total lease payments326.0 34.2 
Less: Imputed interest(26.6)(5.3)
Total lease liabilities$299.4 $28.9 
On September 21, 2022, the Company completed an asset sale-leaseback transaction relating to a facility in Vancouver, Washington. The Company received proceeds of $44.7, net of selling costs, and the asset had a carrying value of $36.7, resulting in a $8.0 gain on the transaction which was recorded in the “Impairment, restructuring and other” line in the Consolidated Statements of Operations. The leaseback has a term of 3 years and is accounted for as an operating lease.