LEASES
The Company leases office space, certain warehouses and equipment primarily through operating lease agreements. The Company has no finance lease agreements. Leases have remaining terms which range from less than 1 year to 12 years and most leases provide the Company with the option to exercise one or more renewal terms.
The following table presents the balance sheet location of the Company’s operating leases.
September 30,
20252024
ROU assets:
   Other assets$26.2 $5.8 
Lease liabilities:
   Other current liabilities$2.6 $2.2 
   Other liabilities26.9 4.3 
      Total liabilities$29.5 $6.5 
Future minimum payments of the Company’s operating lease liabilities as of September 30, 2025 are presented in the following table.
Fiscal 2026$3.2 
Fiscal 20274.1 
Fiscal 20285.3 
Fiscal 20295.4 
Fiscal 20305.5 
Thereafter34.8 
   Total future minimum payments58.3 
   Less: Implied interest19.2 
   Less: Tenant improvement allowance
9.6 
      Total lease liabilities$29.5 
The following table presents supplemental information related to the Company’s operating leases.
Year Ended September 30,
202520242023
Total operating lease expense
$3.9$3.4$3.1
Variable lease expense1.31.00.9
Weighted-average remaining lease term
10 years4 years4 years
Weighted-average incremental borrowing rate
7.0%4.9%4.8%
Operating cash flows for amounts included in the measurement of the Company’s operating lease liabilities for the years ended September 30, 2025, 2024 and 2023 were $2.5, $2.5 and $2.4, respectively. Short-term lease expense for the years ended September 30, 2025, 2024 and 2023 was immaterial. ROU assets obtained in exchange for operating lease liabilities were $22.4 during the year ended September 30, 2025. ROU assets obtained in exchange for operating lease liabilities during the years ended September 30, 2024 and 2023 were immaterial.

Historical Timeline

Fiscal YearFiled
2025Nov 18, 2025Showing above
2024Nov 19, 2024
2023Nov 21, 2023
2022Nov 17, 2022
2021Nov 19, 2021

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.