Spectrum Brands Holdings, Inc.SPB
Spectrum Brands Holdings, Inc. Leases Disclosure
LEASES
During the year ended September 30, 2025, the Company recognized a $7.8 million impairment charge on its finance lease for office space in Middleton, WI following the Company's exit from transition service agreements from previous divestitures and lack of sufficient sublease income to mitigate outgoing cash flow on unused components. During the year ended September 30, 2024, the Company recognized a $5.1 million impairment charge on a right of use operating lease asset for a HPC distribution center having a maturity of February 2025, due to the early exit of operations from the facility and the inability to sub-lease to a third-party prior to the maturity. During the year ended September 30, 2023, the Company recognized a $5.2 million impairment charge on a right of use operating lease asset for a GPC warehouse having a maturity date of December 2029, due to the exit of operations from the facility and the intention to sub-lease to a third-party. The impairments were measured using projected discounted cash flow for the facility, including assumed sub-lease income, when applicable, at sub-lease rental rates comparable to current market conditions and included within Selling, General & Administrative Expense on the Consolidated Statements of Income.
The Company has leases primarily pertaining to manufacturing facilities, distribution centers, office space, warehouses, automobiles, machinery, computers, and office equipment that expire at various times through June 2035. We have embedded operating leases within certain third-party logistic agreements for warehousing and information technology services arrangements and recognized right of use assets identified in the arrangements as part of Operating Lease Assets on the Consolidated Statements of Financial Position. We elected to exclude certain supply chain contracts that may contain embedded leases for manufacturing facilities or dedicated manufacturing lines from our ROU asset and liability calculation based on the insignificant impact to our consolidated financial statements.
The following is a summary of leases recognized on the Consolidated Statements of Financial Position as of September 30, 2025 and 2024:
| (in millions) | Line Item | 2025 | 2024 | |||||||||||||||||
| Assets | ||||||||||||||||||||
| Operating | Operating lease assets | $ | 73.5 | $ | 101.9 | |||||||||||||||
| Finance | Property, plant and equipment, net | 56.7 | 61.0 | |||||||||||||||||
| Total leased assets | $ | 130.2 | $ | 162.9 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Current | ||||||||||||||||||||
| Operating | Short-term operating lease liabilities | $ | 31.8 | $ | 31.3 | |||||||||||||||
| Finance | 11.7 | 9.4 | ||||||||||||||||||
| Long-term | ||||||||||||||||||||
| Operating | Long-term operating lease liabilities | 54.5 | 87.0 | |||||||||||||||||
| Finance | 73.6 | 72.2 | ||||||||||||||||||
| Total lease liabilities | $ | 171.6 | $ | 199.9 | ||||||||||||||||
As of September 30, 2025, the Company has unrecognized commitments of approximately $14.0 million related to a distribution center with a third party logistics service provider that has not yet commenced. The lease is expected to commence in February 2026.
The components of lease costs recognized in the Consolidated Statements of Income for the year ended September 30, 2025, 2024, and 2023 are as follows:
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Operating lease cost | $ | 33.3 | $ | 34.6 | $ | 37.0 | ||||||||||||||
| Finance lease cost | ||||||||||||||||||||
| Amortization of leased assets | 10.0 | 10.3 | 10.2 | |||||||||||||||||
| Interest on lease liability | 4.4 | 4.5 | 4.8 | |||||||||||||||||
| Variable lease cost | 15.1 | 13.0 | 12.4 | |||||||||||||||||
| Total lease cost | $ | 62.8 | $ | 62.4 | $ | 64.4 | ||||||||||||||
The following summarizes income attributable to sub-leases for the years ended September 30, 2025, 2024, and 2023, respectively, recognized as Other Non-Operating Expense, Net on the Consolidated Statements of Income.
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Sub-lease income | $ | 2.9 | $ | 2.4 | $ | 2.4 | ||||||||||||||
NOTE 10 LEASES (continued)
The following is a summary of cash paid for amounts included in the measurement of lease liabilities recognized in the Consolidated Statements of Cash Flow, including supplemental non-cash activity related to operating leases, for the years ended September 30, 2025, 2024, and 2023:
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Operating cash flow from operating leases | $ | 36.0 | $ | 35.5 | $ | 30.3 | ||||||||||||||
| Operating cash flows from finance leases | 4.5 | 4.5 | 4.8 | |||||||||||||||||
| Financing cash flows from finance leases | 10.8 | 10.1 | 9.5 | |||||||||||||||||
| Supplemental non-cash flow disclosure | ||||||||||||||||||||
| Acquisition of operating lease asset through lease obligations | 5.4 | 25.2 | 66.9 | |||||||||||||||||
The following is a summary of weighted-average lease term and discount rate at September 30, 2025 and 2024.
| 2025 | 2024 | |||||||||||||
| Weighted average remaining lease term | ||||||||||||||
| Operating leases | 3.0 years | 4.0 years | ||||||||||||
| Finance leases | 6.8 years | 8.0 years | ||||||||||||
| Weighted average discount rate | ||||||||||||||
| Operating leases | 6.3 % | 6.0 | % | |||||||||||
| Finance leases | 5.6 % | 5.4 | % | |||||||||||
At September 30, 2025, future lease payments under operating and finance leases were as follows.
| (in millions) | Finance Leases | Operating Leases | ||||||||||||
| 2026 | $ | 15.6 | $ | 36.1 | ||||||||||
| 2027 | 16.4 | 28.3 | ||||||||||||
| 2028 | 16.1 | 23.8 | ||||||||||||
| 2029 | 15.5 | 5.6 | ||||||||||||
| 2030 | 12.3 | 0.6 | ||||||||||||
| Thereafter | 26.2 | — | ||||||||||||
| Total lease payments | 102.1 | 94.4 | ||||||||||||
| Amount representing interest | 16.8 | 8.1 | ||||||||||||
| Total minimum lease payments | $ | 85.3 | $ | 86.3 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 18, 2025 | Showing above |
| 2024 | Nov 15, 2024 | |
| 2023 | Nov 21, 2023 | |
| 2022 | Nov 22, 2022 | |
| 2021 | Nov 23, 2021 | |
| 2020 | Nov 18, 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.