Embecta Corp. Leases Disclosure
| As of September 30, 2025 | As of September 30, 2024 | ||||||||||
Finance Lease | |||||||||||
| $ | 28.3 | $ | 30.8 | ||||||||
| Total Finance Lease Assets | $ | 28.3 | $ | 30.8 | |||||||
| Current finance lease liabilities | $ | 3.4 | $ | 3.4 | |||||||
| Non Current Finance Lease Liabilities | 28.7 | 30.2 | |||||||||
| Total Finance Lease Liabilities | $ | 32.1 | $ | 33.6 | |||||||
| Weighted-average remaining lease term (years) | 11.5 | 12.5 | |||||||||
| Weighted-average discount rate | 6.8 | % | 6.8 | % | |||||||
| Operating Leases | |||||||||||
| $ | 20.2 | $ | 22.6 | ||||||||
| Total Operating Lease Assets | $ | 20.2 | $ | 22.6 | |||||||
| $ | 6.9 | $ | 6.0 | ||||||||
| 10.2 | 11.9 | ||||||||||
| Total Operating Lease Liabilities | $ | 17.1 | $ | 17.9 | |||||||
| Weighted-average remaining lease term (years) | 5.6 | 6.3 | |||||||||
| Weighted-average discount rate | 6.6 | % | 6.5 | % | |||||||
| (in millions) | Classification | 2025 | 2024 | 2023 | ||||||||||||||||
| Operating lease expense | Selling and administrative and Research and Development expense | $ | 6.3 | $ | 7.5 | $ | 4.5 | |||||||||||||
| Finance lease cost: | ||||||||||||||||||||
| Depreciation of lease assets | Cost of products sold | 2.5 | 2.5 | 2.4 | ||||||||||||||||
| Interest on lease liabilities | Interest expense, net | 2.3 | 2.4 | 2.4 | ||||||||||||||||
| Total lease cost | $ | 11.1 | $ | 12.4 | $ | 9.3 | ||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Right of use assets obtained in exchange for lease liabilities | |||||||||||||||||
Finance Lease | $ | — | $ | — | $ | — | |||||||||||
| Operating Leases | 2.2 | 3.0 | 19.0 | ||||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2023 | |||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | |||||||||||||||||
Operating cash flows from Operating Leases | $ | 5.8 | $ | 6.4 | $ | 2.9 | |||||||||||
Financing cash flows from Finance Lease | 1.4 | 1.3 | 1.2 | ||||||||||||||
Operating cash flows from Finance Lease | 2.3 | 2.4 | 2.4 | ||||||||||||||
| Finance Leases | Operating Leases | Total | |||||||||||||||
| 2026 | $ | 3.7 | $ | 5.9 | $ | 9.6 | |||||||||||
| 2027 | 3.8 | 2.6 | 6.4 | ||||||||||||||
| 2028 | 3.9 | 2.0 | 5.9 | ||||||||||||||
| 2029 | 3.9 | 2.1 | 6.0 | ||||||||||||||
| 2030 | 4.0 | 1.8 | 5.8 | ||||||||||||||
| Thereafter | 28.3 | 5.7 | 34.0 | ||||||||||||||
| Total lease payments | $ | 47.6 | $ | 20.1 | $ | 67.7 | |||||||||||
| Less: amount representing interest | 15.5 | 3.0 | 18.5 | ||||||||||||||
| Present value of lease liabilities | $ | 32.1 | $ | 17.1 | $ | 49.2 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 25, 2025 | Showing above |
| 2024 | Dec 11, 2024 | |
| 2023 | Nov 29, 2023 | |
| 2022 | Dec 22, 2022 | |
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.