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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases

13. Leases

The Company leases certain real estate, information technology equipment, warehouse equipment, vehicles and other equipment through leases. The Company determines whether an arrangement contains a lease at inception. A lease liability and corresponding right of use ROU asset are recognized for qualifying leased assets based on the present value of fixed and certain index-based lease payments at lease commencement. Variable payments, which are generally determined based on the usage rate of the underlying asset, are excluded from the present value of lease payments and are recognized in the period in which the payment is made. To determine the present value of lease payments, the Company uses the stated interest rate in the lease, when available, or more commonly a secured incremental borrowing rate that reflects risk, term and economic environment in which the lease is denominated. The incremental borrowing rate is determined using a portfolio approach based on the current rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company has elected not to separate payments for lease components from payments for non-lease components in contracts that contain both components. Lease agreements may include options to extend or terminate the lease. Those options that are reasonably certain of exercise at lease commencement have been included in the term of the lease used to recognize the right of use assets and lease liabilities. The lease terms of the Company’s real estate and equipment leases extend up to 29 years and 19 years, respectively. The Company has elected not to recognize ROU assets or lease liabilities for leases with a term of twelve months or less. Expense is recognized on a straight-line basis over the lease term for operating leases.

The components of lease costs were as follows (in millions):

 

Year Ended
December 31,

 

 

(transition period)
Three Months Ended
December 31,

 

 

Year Ended
September 30,

 

 

2023

 

 

2022

 

 

2021

 

 

2021

 

Operating lease cost

$

58.6

 

 

$

54.0

 

 

$

13.9

 

 

$

53.3

 

Finance lease cost - amortization

 

13.8

 

 

 

9.9

 

 

 

2.1

 

 

 

5.4

 

Finance lease cost - interest

 

1.4

 

 

 

0.6

 

 

 

0.1

 

 

 

0.4

 

Variable lease cost

 

31.7

 

 

 

31.9

 

 

 

7.1

 

 

 

34.0

 

Short-term lease cost

 

11.1

 

 

 

11.1

 

 

 

2.5

 

 

 

9.5

 

Supplemental information related to leases was as follows (in millions):

 

 

 

 

December 31, 2023

 

 

 

Balance Sheet Classification

 

Operating leases

 

 

Finance leases

 

 

Total

 

Lease right of use assets

 

Other long-term assets

 

$

205.9

 

 

$

58.4

 

 

$

264.3

 

Current lease liabilities

 

Other current liabilities

 

 

38.6

 

 

 

15.4

 

 

 

54.0

 

Long-term lease liabilities

 

Other long-term liabilities

 

 

178.1

 

 

 

43.9

 

 

 

222.0

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term

 

 

 

7.2 years

 

 

5.7 years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average discount rates

 

 

 

 

3.8

%

 

 

3.9

%

 

 

 

 

 

 

 

 

December 31, 2022

 

 

Balance Sheet Classification

 

Operating leases

 

 

Finance leases

 

 

Total

 

Lease right of use assets

 

Other long-term assets

 

$

209.2

 

 

$

28.0

 

 

$

237.2

 

Current lease liabilities

 

Other current liabilities

 

 

44.6

 

 

 

9.9

 

 

 

54.5

 

Long-term lease liabilities

 

Other long-term liabilities

 

 

174.7

 

 

 

18.7

 

 

 

193.4

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term

 

 

 

7.9 years

 

 

4.0 years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average discount rates

 

 

 

 

3.4

%

 

 

2.5

%

 

 

 

 

The table below presents the right of use asset balance for leases disaggregated by segment and type of lease (in millions):

 

December 31, 2023

 

 

Access

 

 

Defense

 

 

Vocational

 

 

Corporate and
intersegment
eliminations

 

 

Total

 

Operating Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate leases

 

$

83.9

 

 

$

39.3

 

 

$

58.5

 

 

$

9.8

 

 

$

191.5

 

Equipment leases

 

 

6.4

 

 

 

1.0

 

 

 

2.1

 

 

 

4.9

 

 

 

14.4

 

 

$

90.3

 

 

$

40.3

 

 

$

60.6

 

 

$

14.7

 

 

$

205.9

 

Finance Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate leases

 

$

8.9

 

 

$

2.4

 

 

$

0.6

 

 

$

—

 

 

$

11.9

 

Equipment leases

 

 

4.9

 

 

 

5.6

 

 

 

2.3

 

 

 

33.7

 

 

 

46.5

 

 

$

13.8

 

 

$

8.0

 

 

$

2.9

 

 

$

33.7

 

 

$

58.4

 

 

 

 

December 31, 2022

 

 

Access

 

 

Defense

 

 

Vocational

 

 

Corporate and
intersegment
eliminations

 

 

Total

 

Operating Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate leases

 

$

77.2

 

 

$

45.7

 

 

$

62.9

 

 

$

9.6

 

 

$

195.4

 

Equipment leases

 

 

3.6

 

 

 

1.1

 

 

 

2.6

 

 

 

6.5

 

 

 

13.8

 

 

$

80.8

 

 

$

46.8

 

 

$

65.5

 

 

$

16.1

 

 

$

209.2

 

Finance Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate leases

 

$

4.1

 

 

$

2.8

 

 

$

—

 

 

$

—

 

 

$

6.9

 

Equipment leases

 

 

3.2

 

 

 

3.0

 

 

 

1.4

 

 

 

13.5

 

 

 

21.1

 

 

$

7.3

 

 

$

5.8

 

 

$

1.4

 

 

$

13.5

 

 

$

28.0

 

Maturities of lease liabilities at December 31, 2023 and minimum payments for leases having initial or remaining non-cancelable terms in excess of one year were as follows (in millions):

Amounts due in

 

Operating leases

 

 

Finance leases

 

 

Total

 

2024

 

$

48.7

 

 

$

17.4

 

 

$

66.1

 

2025

 

 

38.7

 

 

 

14.1

 

 

 

52.8

 

2026

 

 

32.0

 

 

 

10.7

 

 

 

42.7

 

2027

 

 

28.5

 

 

 

7.5

 

 

 

36.0

 

2028

 

 

25.3

 

 

 

3.8

 

 

 

29.1

 

Thereafter

 

 

75.8

 

 

 

13.2

 

 

 

89.0

 

Total lease payments

 

 

249.0

 

 

 

66.7

 

 

 

315.7

 

Less: imputed interest

 

 

(32.3

)

 

 

(7.4

)

 

 

(39.7

)

Present value of lease liability

 

$

216.7

 

 

$

59.3

 

 

$

276.0