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LEASES
 3 Months Ended
Jan. 02, 2022
Leases [Abstract]  
LEASES LEASES
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 30, 2035. We have identified embedded operating leases within certain logistic agreements for warehouses and information technology services arrangements and recognized assets identified in the arrangements as part of operating right-of-use ("ROU") assets on the Company’s Condensed Consolidated Statements of Financial Position as of January 2, 2022 and September 30, 2021. We elected to exclude certain supply agreements that contain embedded leases for manufacturing facilities or dedicated manufacturing lines from our ROU asset and liability calculation based on the insignificant impact to our financial statements.
The following is a summary of the leases recognized on the Company’s Condensed Consolidated Statements of Financial Position as of January 2, 2022 and September 30, 2021:
(in millions)Line ItemJanuary 2, 2022September 30, 2021
Assets
OperatingOperating lease assets$56.3 $56.5 
FinanceProperty, plant and equipment, net81.9 84.2 
Total leased assets$138.2 $140.7 
Liabilities
Current
OperatingOther current liabilities$19.1 $17.4 
FinanceCurrent portion of long-term debt8.1 7.9 
Long-term
OperatingLong-term operating lease liabilities42.6 44.5 
FinanceLong-term debt, net of current portion91.9 94.0 
Total lease liabilities$161.7 $163.8 
As of January 2, 2022, the Company had no commitments related to leases executed that have not yet commenced.
The Company records its operating lease expense and amortization of finance lease ROU assets within Cost of Goods Sold or Operating Expenses in the Condensed Consolidated Statements of Income depending on the nature and use of the underlying asset. The Company records its finance interest cost within Interest Expense in the Condensed Consolidated Statements of Income.
The components of lease costs recognized in the Condensed Consolidated Statements of Income for the three month periods ended January 2, 2022 and January 3, 2021 are as follows:
Three Month Periods Ended
(in millions)January 2, 2022January 3, 2021
Operating lease cost$5.2 $3.8 
Finance lease cost
Amortization of leased assets2.7 3.1 
Interest on lease liability1.3 1.5 
Variable lease cost2.3 2.3 
Total lease cost$11.5 $10.7 
During the three month periods ended January 2, 2022 and January 3, 2021, the Company recognized income attributable to leases and sub-leases of $0.5 million and $0.6 million, respectively. Income from leases and sub-leases is recognized as Other Non-Operating Income in the Condensed Consolidated Statements of Income.
The following is a summary of the Company’s cash paid for amounts included in the measurement of lease liabilities recognized in the Condensed Consolidated Statement of Cash Flow, including supplemental non-cash activity related to operating leases, for the three month periods ending January 2, 2022 and January 3, 2021:
Three Month Periods Ended
(in millions)January 2, 2022January 3, 2021
Operating cash flow from operating leases$5.4 $3.4 
Operating cash flows from finance leases1.3 1.5 
Financing cash flows from finance leases2.1 2.7 
Supplemental non-cash flow disclosure
Acquisition of operating lease asset through lease obligations4.8 7.3 
The following is a summary of weighted-average lease term and discount rate at January 2, 2022 and September 30, 2021:
January 2, 2022September 30, 2021
Weighted average remaining lease term
Operating leases4.4 years4.6 years
Finance leases10.2 years10.4 years
Weighted average discount rate
Operating leases4.1 %4.3 %
Finance leases5.1 %4.9 %
At January 2, 2022, future lease payments under operating and finance leases were as follows:
(in millions)Finance LeasesOperating Leases
2022 remaining balance$9.5 $16.0 
202313.5 19.9 
202413.3 10.6 
202511.9 7.5 
202611.7 5.2 
Thereafter70.2 8.8 
Total lease payments130.1 68.0 
Amount representing interest(30.1)(6.3)
Total minimum lease payments$100.0 $61.7 
LEASES LEASES
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 30, 2035. We have identified embedded operating leases within certain logistic agreements for warehouses and information technology services arrangements and recognized assets identified in the arrangements as part of operating right-of-use ("ROU") assets on the Company’s Condensed Consolidated Statements of Financial Position as of January 2, 2022 and September 30, 2021. We elected to exclude certain supply agreements that contain embedded leases for manufacturing facilities or dedicated manufacturing lines from our ROU asset and liability calculation based on the insignificant impact to our financial statements.
The following is a summary of the leases recognized on the Company’s Condensed Consolidated Statements of Financial Position as of January 2, 2022 and September 30, 2021:
(in millions)Line ItemJanuary 2, 2022September 30, 2021
Assets
OperatingOperating lease assets$56.3 $56.5 
FinanceProperty, plant and equipment, net81.9 84.2 
Total leased assets$138.2 $140.7 
Liabilities
Current
OperatingOther current liabilities$19.1 $17.4 
FinanceCurrent portion of long-term debt8.1 7.9 
Long-term
OperatingLong-term operating lease liabilities42.6 44.5 
FinanceLong-term debt, net of current portion91.9 94.0 
Total lease liabilities$161.7 $163.8 
As of January 2, 2022, the Company had no commitments related to leases executed that have not yet commenced.
The Company records its operating lease expense and amortization of finance lease ROU assets within Cost of Goods Sold or Operating Expenses in the Condensed Consolidated Statements of Income depending on the nature and use of the underlying asset. The Company records its finance interest cost within Interest Expense in the Condensed Consolidated Statements of Income.
The components of lease costs recognized in the Condensed Consolidated Statements of Income for the three month periods ended January 2, 2022 and January 3, 2021 are as follows:
Three Month Periods Ended
(in millions)January 2, 2022January 3, 2021
Operating lease cost$5.2 $3.8 
Finance lease cost
Amortization of leased assets2.7 3.1 
Interest on lease liability1.3 1.5 
Variable lease cost2.3 2.3 
Total lease cost$11.5 $10.7 
During the three month periods ended January 2, 2022 and January 3, 2021, the Company recognized income attributable to leases and sub-leases of $0.5 million and $0.6 million, respectively. Income from leases and sub-leases is recognized as Other Non-Operating Income in the Condensed Consolidated Statements of Income.
The following is a summary of the Company’s cash paid for amounts included in the measurement of lease liabilities recognized in the Condensed Consolidated Statement of Cash Flow, including supplemental non-cash activity related to operating leases, for the three month periods ending January 2, 2022 and January 3, 2021:
Three Month Periods Ended
(in millions)January 2, 2022January 3, 2021
Operating cash flow from operating leases$5.4 $3.4 
Operating cash flows from finance leases1.3 1.5 
Financing cash flows from finance leases2.1 2.7 
Supplemental non-cash flow disclosure
Acquisition of operating lease asset through lease obligations4.8 7.3 
The following is a summary of weighted-average lease term and discount rate at January 2, 2022 and September 30, 2021:
January 2, 2022September 30, 2021
Weighted average remaining lease term
Operating leases4.4 years4.6 years
Finance leases10.2 years10.4 years
Weighted average discount rate
Operating leases4.1 %4.3 %
Finance leases5.1 %4.9 %
At January 2, 2022, future lease payments under operating and finance leases were as follows:
(in millions)Finance LeasesOperating Leases
2022 remaining balance$9.5 $16.0 
202313.5 19.9 
202413.3 10.6 
202511.9 7.5 
202611.7 5.2 
Thereafter70.2 8.8 
Total lease payments130.1 68.0 
Amount representing interest(30.1)(6.3)
Total minimum lease payments$100.0 $61.7