Leases

9 Months Ended

Jun. 30, 2025

Note 18 — Leases

Finance Leases

The Company's finance lease assets and liabilities are attributed to its manufacturing site in Holdrege, Nebraska, which has an initial term of ten years and an option for the Company to extend the lease term for an additional period of up to five years. This lease is classified as a finance lease because the present value of the sum of the lease payments associated with the lease exceeds substantially all of the fair value of the manufacturing site.

Operating Leases

The Company's operating leases primarily relate to its real estate leases that are not classified as finance leases.

Aggregate Lease Information

The Company's leases are included in its Condensed Consolidated Balance Sheets as follows:


	June 30, 2025			September 30, 2024
Finance Leases
Property, Plant, and Equipment, Net	$	28.9		$	30.8
Total Finance Lease Assets	$	28.9		$	30.8

Current finance lease liabilities	$	3.4		$	3.4
Non Current Finance Lease Liabilities	29.1			30.2
Total Finance Lease Liabilities	$	32.5		$	33.6

Weighted-average remaining lease term (years)	11.8			12.5
Weighted-average discount rate	6.8		%	6.8		%

Operating Leases
Other Assets	$	20.3		$	22.6
Total Operating Lease Assets	$	20.3		$	22.6

Accrued expenses	$	6.1		$	6.0
Deferred Income Taxes and Other Liabilities	10.7			11.9
Total Operating Lease Liabilities	$	16.8		$	17.9

Weighted-average remaining lease term (years)	6.0			6.3
Weighted-average discount rate	6.8		%	6.5		%

Supplemental cash flow information related to leases for the nine months ended June 30, 2025 and 2024 were as follows:


	June 30, 2025		June 30, 2024
Right of use assets obtained in exchange for lease liabilities

Operating Leases	$	2.2	$	1.5


	June 30, 2025		June 30, 2024
Cash used for amounts included in the measurement of lease liabilities
Operating cash flows from Operating Leases	$	4.4	$	5.0
Financing cash flows from Finance Lease	1.0		1.0
Operating cash flows from Finance Lease	1.7		2.0

Maturities of the Company's finance and operating lease liabilities as of June 30, 2025 by fiscal year are as follows:


	Finance Leases		Operating Leases		Total
2025	$	0.9	$	1.8	$	2.7
2026	3.7		3.6		7.3
2027	3.8		2.0		5.8
2028	3.9		2.0		5.9
2029	3.9		1.8		5.7
Thereafter	32.3		7.5		39.8
Total lease payments	$	48.5	$	18.7	$	67.2
Less: amount representing interest	16.0		1.9		17.9
Present value of lease liabilities	$	32.5	$	16.8	$	49.3

Leases

Embecta Corp. 10-Q