Revenue

12 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

4. Revenue

Disaggregation of revenue

The following table presents the Company’s reportable segment revenues, disaggregated by revenue type. The Company disaggregates revenue from contracts with customers into major services lines. The Company has determined that disaggregating revenue into these categories depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. As noted in the business segment reporting information in Note 15 "Segments", the Company’s reportable segments are Maintenance Services and Development Services.

	Fiscal Year Ended September 30,
	2024			2023			2022
Landscape Maintenance	$	1,743.2		$	1,857.5		$	1,825.7
Snow Removal		220.8			209.0			256.3
Maintenance Services		1,964.0			2,066.5			2,082.0
Development Services		808.8			758.0			698.8
Eliminations		(5.7	)		(8.5	)		(6.2	)
Net service revenues	$	2,767.1		$	2,816.0		$	2,774.6

Remaining Performance Obligations

Remaining performance obligations represent the estimated revenue expected to be recognized in the future related to performance obligations which are fully or partially unsatisfied at the end of the period.

As of September 30, 2024, the estimated future revenues for remaining performance obligations that are part of a contract that has an original expected duration of greater than one year was approximately $546.4. The Company expects to recognize revenue on 54% of the remaining performance obligations over the next 12 months and an additional 46% over the 12 months thereafter.

Contract Assets and Liabilities

When a contract results in revenue being recognized in excess of the amount the Company has invoiced or has the right to invoice to the customer, a contract asset is recognized. Contract assets are transferred to Accounts receivable, net when the rights to the consideration become unconditional. Contract assets are presented as Unbilled revenue on the Consolidated Balance Sheets.

There were $185.0 of amounts billed during the period and $179.3 of additions to our unbilled revenue balance during the twelve month period ended September 30, 2024.

Contract liabilities consist of payments received from customers, or such consideration that is contractually due, in advance of providing the product or performing services such that control has not passed to the customer. Contract liabilities are presented as Deferred revenue on the Consolidated Balance Sheets.

Changes in Deferred revenue for the fiscal year ended September 30, 2024 were as follows:

	Deferred Revenue
Balance, September 30, 2023	$	68.2
Recognition of revenue		(1,180.8	)
Deferral of revenue		1,197.2
Divestiture (Note 7)		(0.9	)
Balance, September 30, 2024	$	83.8

Practical Expedients and Exemptions

The Company offers certain interest-free contracts to customers where payments are received over a period not exceeding one year. Additionally, certain Maintenance Services and Development Services customers may pay in advance for services. The Company does not adjust the promised amount of consideration for the effects of these financing components. At contract inception, the period of time between the performance of services and the customer payment is one year or less.

As permitted under the practical expedient available under ASU No. 2014-09, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance and (iii) contracts for which the Company recognizes revenue at the amount which we have the right to invoice for services performed.