ENERGIZER HOLDINGS, INC.ENR
ENERGIZER HOLDINGS, INC. Leases Disclosure
Leases
The Company determines whether an arrangement contains a lease at the inception of the contract by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Energizer's portfolio of leases contains certain real estate, equipment, vehicles and office equipment leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Additionally, the Company's leases do not contain material residual value guarantees or material restrictive covenants.
Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company does not account for lease components separately from non-lease components. The discount rate used to calculate present value for both operating and financing leases is Energizer's incremental borrowing rate based on information available at the commencement date, or if available, the rate implicit in the lease. The incremental borrowing rate used is determined based on fully secured borrowings at the time of lease commencement. Many of these agreements contain options to renew or terminate the lease. For calculating lease liabilities, the Company includes these options within the lease term when it is reasonably certain that the Company will execute such options. Some of the leases include variable payments, which primarily are tied to asset usage or sales rather than an index or rate. As such, these variable payments are not included in the calculation of the Company's lease assets and liabilities.
As of September 30, 2025 and 2024 the amounts for leases included on our Consolidated Balance Sheet include:
| Balance Sheet Location | September 30, 2025 | September 30, 2024 | |||||||||
| Operating Leases: | |||||||||||
| Operating lease assets | $ | 93.2 | $ | 94.7 | |||||||
| Operating lease liabilities - current | 16.2 | 18.2 | |||||||||
| Operating lease liabilities | 84.8 | 82.4 | |||||||||
| Total Operating Lease Liabilities | $ | 101.0 | $ | 100.6 | |||||||
| Weighted-average remaining lease term (in years) | 16.4 | 16.1 | |||||||||
| Weighted-average discount rate | 3.9 | % | 4.0 | % | |||||||
| Finance Leases: | |||||||||||
| $ | 45.5 | $ | 46.0 | ||||||||
| Current portion of finance leases | 1.5 | 0.6 | |||||||||
| 48.8 | 48.6 | ||||||||||
| Total Finance Lease Liabilities | $ | 50.3 | $ | 49.2 | |||||||
| Weighted Average remaining lease term (in years) | 18.7 | 20.0 | |||||||||
| Weighted-average discount rate | 6.2 | % | 6.2 | % | |||||||
The following table presents the components of lease expense:
| For the Years Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating lease costs | $ | 22.2 | $ | 20.6 | $ | 19.9 | |||||||||||
| Finance lease costs: | |||||||||||||||||
| Amortization of assets | 2.7 | 2.2 | 1.2 | ||||||||||||||
| Interest on lease liabilities | 3.0 | 3.0 | 2.1 | ||||||||||||||
| Variable lease costs | 3.7 | 1.2 | 1.3 | ||||||||||||||
| Total lease costs | $ | 31.6 | $ | 27.0 | $ | 24.5 | |||||||||||
Supplemental cash and non-cash information related to leases:
| For the Years Ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 22.6 | $ | 22.0 | $ | 20.5 | |||||||||||
| Operating cash flows from finance leases | 2.9 | 3.0 | 2.1 | ||||||||||||||
| Financing cash flows from finance leases | 1.2 | 1.0 | 0.3 | ||||||||||||||
| Non-cash increase in lease assets and lease liabilities: | |||||||||||||||||
| Operating leases (1) | $ | 19.3 | $ | 11.4 | $ | 13.0 | |||||||||||
(1) The fiscal 2025 increase in operating lease assets and liabilities was primarily driven by new operating leases that were acquired as part of the APS NV Acquisition (See Note 4, Acquisitions, for additional information), as well as other normal lease activity occurring through the normal course of business. The fiscal 2024 increase in operating lease assets and liabilities was primarily related to the headquarters relocation in St. Louis, MO, as well as other normal lease activity occurring through normal course of business. The fiscal 2023 increase in operating lease assets and liabilities was primarily driven by the Project Momentum network reorganization and real estate optimization programs, as well as normal lease renewals occurring through normal course of business.
Minimum lease payments under operating and finance leases with non-cancellable terms in excess of one year as of September 30, 2025 are as follows:
| Operating Leases | Finance Leases | ||||||||||
| 2026 | $ | 19.7 | $ | 4.6 | |||||||
| 2027 | 13.5 | 4.6 | |||||||||
| 2028 | 12.5 | 4.7 | |||||||||
| 2029 | 11.7 | 4.4 | |||||||||
| 2030 | 9.0 | 4.3 | |||||||||
| Thereafter | 79.2 | 66.4 | |||||||||
| Total lease payments | 145.6 | 89.0 | |||||||||
| Less: Imputed interest | (44.6) | (38.7) | |||||||||
| Present value of lease liabilities | $ | 101.0 | $ | 50.3 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 18, 2025 | Showing above |
| 2024 | Nov 19, 2024 | |
| 2023 | Nov 14, 2023 | |
| 2022 | Nov 15, 2022 | |
| 2021 | Nov 16, 2021 | |
| 2020 | Nov 17, 2020 | |
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.