Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
9 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases Leases
The Company’s lease portfolio is comprised of operating leases primarily for manufacturing facilities, offices, vehicles, and certain equipment. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on whether the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Leases are classified as operating or finance leases at the commencement date of the lease. Operating leases are recorded within operating lease right-of-use assets, net, other current liabilities, and operating lease liabilities in the Consolidated Balance Sheets. The Company’s finance leases were insignificant as of June 30, 2021 and September 30, 2020. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. We have elected an accounting policy to combine lease and non-lease components for all leases.

Operating lease right-of-use assets, net and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the implicit rate is generally not readily determinable for most leases, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate reflects the estimated rate of interest that the Company would pay to borrow on a collateralized basis over a similar term in a similar economic environment. Lease expense for operating leases is recognized on a straight-line basis over the lease term.

Leases may include renewal options, and the renewal option is included in the lease term if the Company concludes that it is reasonably certain that the option will be exercised. A certain number of the Company’s leases contain rent escalation clauses, either fixed or adjusted periodically for inflation of market rates, that are factored into the calculation of lease payments to the extent they are fixed and determinable at lease inception. The Company also has variable lease payments that do not depend on a rate or index, primarily for items such as common area maintenance and real estate taxes, which are recorded as variable costs when incurred.

For the three and nine months ended June 30, 2021 and 2020, the Company recognized $9.0 and $26.6, and $9.2 and $27.0 respectively, of operating lease expense, including short-term lease expense and variable lease costs, which were immaterial in each period.
The following table presents supplemental Consolidated Balance Sheet information related to the Company’s operating leases:
June 30, 2021 September 30, 2020
Operating lease right-of-use assets, net $ 146.3 $ 154.4 
Other current liabilities 31.9 $ 31.2 
Operating lease liabilities 112.8 120.9 
Total operating lease liabilities $ 144.7 $ 152.1
Weighted-average remaining lease term (in years) 7.4 7.6
Weighted-average discount rate 2.1  % 2.5  %

As of June 30, 2021, the maturities of the Company’s operating lease liabilities were as follows:
2021 (excluding the nine months ended June 30, 2021)
$ 9.2 
2022 32.5 
2023 27.0 
2024 18.8 
2025 12.3 
Thereafter 54.8 
Total lease payments 154.6 
Less: imputed interest (9.9)
Total present value of lease payments $ 144.7 

Supplemental Consolidated Statements of Cash Flow information is as follows:
Nine Months Ended June 30,
2021 2020
Cash paid for amounts included in the measurement of operating lease liabilities $ 28.9  $ 28.0 
Operating lease right-of-use assets, net obtained in exchange for new operating lease liabilities 16.2  22.2