Accounts Receivable Facility |
6 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Transfers and Servicing [Abstract] | |
| Accounts receivable facility | Accounts Receivable Facilities The Company participates in accounts receivable facility programs both in the United States and Japan. These receivable agreements are between the Company and MUFG Bank, LTD (“MUFG”), and the subsidiaries of both parties. Transfers under the accounts receivable repurchase agreements are accounted for as sales of accounts receivables, resulting in the receivables being derecognized from the Condensed Consolidated Balance Sheets. MUFG, as the purchaser assumes the credit risk at the time of sale and has the right at any time to assign, transfer, or participate any of its rights under the purchased receivables to another bank or financial institution. The purchase and sale of receivables under accounts receivable repurchase agreements is intended to be an absolute and irrevocable transfer without recourse by the purchaser to the Company for the creditworthiness of any obligor. The Company has considered its performance obligation to collect and service the receivables sold in the United States and Japan and has determined that the costs associated with such services are not material. The Company has deemed the compensation received acceptable servicing compensation and as such, the Company does not recognize a servicing asset or liability. Accounts receivables sold were $300.7 and $524.6 for the three and six months ended March 31, 2025, respectively, and $316.4 and $532.5 for the three and six months ended March 31, 2024, respectively. The trade receivables sold that remained outstanding as of March 31, 2025 and September 30, 2024 were $132.9 and $88.6, respectively. The net proceeds received were included in both Cash provided by operating activities and Cash used by investing activities on the Condensed Consolidated Statements of Cash Flows. The subsequent cash collections and remittances of cash to the MUFG for receivables serviced by the Company are considered financing cash flow activity and are presented net for the period. The difference between the carrying amount of the trade receivables sold and the sum of the cash received is recorded as a loss on sale of receivables in Other (income) expense, net in the Condensed Consolidated Statements of Earnings and Comprehensive (Loss) Income. The loss on sale of trade receivables was $1.3 and $2.4 for the three and six months ended March 31, 2025, respectively. The loss on sale of trade receivables was $1.6 and $2.8 for the three and six months ended March 31, 2024, respectively.
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