Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Oct. 31, 2021 | Mar. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BECN | ||
Entity Registrant Name | BEACON ROOFING SUPPLY, INC. | ||
Entity Central Index Key | 0001124941 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 70,112,948 | ||
Entity Shell Company | false | ||
Entity File Number | 000-50924 | ||
Entity Tax Identification Number | 36-4173371 | ||
Entity Address, Address Line One | 505 Huntmar Park Drive | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Herndon | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 20170 | ||
City Area Code | 571 | ||
Local Phone Number | 323-3939 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 2,900 | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | The information required by Part III (Items 10, 11, 12, 13 and 14) will be incorporated by reference from the Registrant’s definitive proxy statement for its 2022 Annual Meeting of Stockholders, which will be filed pursuant to Regulation 14A with the United States Securities and Exchange Commission (“SEC”) within 120 days after the end of the fiscal year to which this report relates. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 260 | $ 624.6 |
Accounts receivable, less allowance of $16.3 and $17.9 as of September 30, 2021 and 2020, respectively | 978.3 | 885.2 |
Inventories, net | 1,084.5 | 871.4 |
Prepaid expenses and other current assets | 345.9 | 351.8 |
Current assets held for sale | 243.8 | |
Total current assets | 2,668.7 | 2,976.8 |
Property and equipment, net | 236.6 | 207.8 |
Goodwill | 1,760.9 | 1,756.1 |
Intangibles, net | 414.8 | 518 |
Operating lease assets | 399.2 | 376.2 |
Deferred income taxes, net | 64.5 | |
Other assets, net | 9.8 | 2.1 |
Non-current assets held for sale | 1,120.5 | |
Total assets | 5,554.5 | 6,957.5 |
Current liabilities: | ||
Accounts payable | 812.9 | 885.8 |
Accrued expenses | 546.7 | 507.3 |
Current operating lease liabilities | 88.5 | 84 |
Current finance lease liabilities | 5 | 2.4 |
Current portions of long-term debt/obligations | 10 | 12.3 |
Current liabilities held for sale | 139.4 | |
Total current liabilities | 1,463.1 | 1,631.2 |
Borrowings under revolving lines of credit, net | 251.1 | |
Long-term debt, net | 1,614.5 | 2,494.2 |
Deferred income taxes, net | 0.7 | 71.8 |
Non-current operating lease liabilities | 311.3 | 290.5 |
Non-current finance lease liabilities | 22.9 | 5.2 |
Non-current liabilities held for sale | 53.4 | |
Total liabilities | 3,412.5 | 4,797.4 |
Commitments and contingencies (Note 10) | ||
Convertible Preferred Stock; $0.01 par value; aggregate liquidation preference $400.0; 0.4 shares authorized, issued and outstanding as of September 30, 2021 and 2020 (Note 5) | 399.2 | 399.2 |
Stockholders' equity: | ||
Common stock (voting); $0.01 par value; 100.0 shares authorized; 00.0 and 69.0 shares issued and outstanding as of September 30, 2021 and 2020, respectively | 0.7 | 0.7 |
Undesignated preferred stock; 5.0 shares authorized, none issued or outstanding | 0 | 0 |
Additional paid-in capital | 1,145 | 1,100.6 |
Retained earnings | 620.5 | 694.3 |
Accumulated other comprehensive income (loss) | (23.4) | (34.7) |
Total stockholders' equity | 1,742.8 | 1,760.9 |
Total liabilities and stockholders' equity | $ 5,554.5 | $ 6,957.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 16.3 | $ 17.9 |
Convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Convertible preferred stock. aggregate liquidation preference | $ 400 | $ 400 |
Convertible preferred stock, shares authorized | 400,000 | 400,000 |
Convertible preferred stock, shares issued | 400,000 | 400,000 |
Convertible preferred stock, shares outstanding | 400,000 | 400,000 |
Common stock (voting), par value | $ 0.01 | $ 0.01 |
Common stock (voting), shares authorized | 100,000,000 | 100,000,000 |
Common Stock (voting), issued | 70,100,000 | 69,000,000 |
Common Stock (voting), outstanding | 70,100,000 | 69,000,000 |
Undesignated Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Undesignated Preferred Stock, issued | 0 | 0 |
Undesignated Preferred Stock, outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Income Statement [Abstract] | |||||
Net sales | $ 6,642 | $ 5,916.7 | $ 5,996.1 | ||
Cost of products sold | 4,884.3 | 4,496.2 | 4,568.5 | ||
Gross profit | 1,757.7 | 1,420.5 | 1,427.6 | ||
Operating expense: | |||||
Selling, general and administrative | 1,138.7 | 1,065.5 | 1,092.8 | ||
Depreciation | 58.9 | 58.1 | 60.5 | ||
Amortization | 103.3 | 261.9 | 142.9 | ||
Total operating expense | 1,300.9 | 1,385.5 | 1,296.2 | ||
Income (loss) from operations | 456.8 | 35 | 131.4 | ||
Interest expense, financing costs, and other | 98.1 | 128.6 | 153.5 | ||
Loss on debt extinguishment | 60.2 | 14.7 | |||
Income (loss) from continuing operations before income taxes | 298.5 | (108.3) | (22.1) | ||
Provision for (benefit from) income taxes | 77.3 | (27) | (3.2) | ||
Net income (loss) from continuing operations | 221.2 | (81.3) | (18.9) | ||
Net income (loss) from discontinued operations | [1] | (266.7) | 0.4 | 8.3 | |
Net income (loss) | (45.5) | (80.9) | (10.6) | ||
Dividends on Preferred Stock | 24 | [2] | 24 | 24 | |
Net income (loss) attributable to common stockholders | $ (69.5) | $ (104.9) | $ (34.6) | ||
Weighted-average common stock outstanding: | |||||
Basic | [3] | 69,700,000 | 68,800,000 | 68,400,000 | |
Diluted | [3] | 80,500,000 | 68,800,000 | 68,400,000 | |
Net income (loss) per share: | |||||
Basic - Continuing operations | [3] | $ 2.83 | $ (1.53) | $ (0.63) | |
Basic - Discontinued operations | [3] | (3.83) | 0.01 | 0.12 | |
Basic net income (loss) per share | [3] | (1) | (1.52) | (0.51) | |
Diluted - Continuing operations | [3] | 2.75 | (1.53) | (0.63) | |
Diluted - Discontinued operations | [3] | (3.32) | 0.01 | 0.12 | |
Diluted net income (loss) per share | [3] | $ (0.57) | $ (1.52) | $ (0.51) | |
[1] | See Note 3 for detailed calculations and further discussion. | ||||
[2] | The hypothetical conversion of the Preferred Stock became dilutive for the year ended September 30, 2021, primarily stemming from the significant income from continuing operations and offsetting loss from discontinued operations in 2021, and their combined effect on the Company’s calculation of diluted net income (loss) per share. | ||||
[3] | See Note 5 for detailed calculations and further discussion. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ (45.5) | $ (80.9) | $ (10.6) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 4 | (0.7) | (1.7) |
Unrealized gain (loss) due to change in fair value of derivatives, net of tax | 7.3 | (13.4) | (1.6) |
Total other comprehensive income (loss) | 11.3 | (14.1) | (3.3) |
Comprehensive income (loss) | $ (34.2) | $ (95) | $ (13.9) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | APIC [Member] | [1] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | AOCI [Member] | [2] |
Balance at Sep. 30, 2018 | $ 1,884.2 | $ 0.7 | $ 1,067 | $ 833.8 | $ (17.3) | ||||
Balance (in shares) at Sep. 30, 2018 | 68,100,000 | ||||||||
Issuance of common stock, net of shares withheld for taxes | (0.4) | (0.4) | |||||||
Issuance of common stock, net of shares withheld for taxes (Shares) | 500,000 | ||||||||
Stock-based compensation | 16.4 | 16.4 | |||||||
Other comprehensive income (loss) | (3.3) | (3.3) | |||||||
Net income (loss) | (10.6) | (10.6) | |||||||
Dividends on Preferred Stock | (24) | (24) | |||||||
Balance at Sep. 30, 2019 | 1,862.3 | $ 0.7 | 1,083 | 799.2 | (20.6) | ||||
Balance (in shares) at Sep. 30, 2019 | 68,600,000 | ||||||||
Issuance of common stock, net of shares withheld for taxes | 0.4 | 0.4 | |||||||
Issuance of common stock, net of shares withheld for taxes (Shares) | 400,000 | ||||||||
Stock-based compensation | 17.2 | 17.2 | |||||||
Other comprehensive income (loss) | (14.1) | (14.1) | |||||||
Net income (loss) | (80.9) | (80.9) | |||||||
Dividends on Preferred Stock | (24) | (24) | |||||||
Balance at Sep. 30, 2020 | 1,760.9 | $ (4.3) | $ 0.7 | 1,100.6 | 694.3 | $ (4.3) | (34.7) | ||
Balance (in shares) at Sep. 30, 2020 | 69,000,000 | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update201613 [Member] | Accounting Standards Update201613 [Member] | |||||||
Issuance of common stock, net of shares withheld for taxes | 21.8 | 21.8 | |||||||
Issuance of common stock, net of shares withheld for taxes (Shares) | 1,100,000 | ||||||||
Stock-based compensation | 22.6 | 22.6 | |||||||
Other comprehensive income (loss) | 11.3 | 11.3 | |||||||
Net income (loss) | (45.5) | (45.5) | |||||||
Dividends on Preferred Stock | (24) | (24) | |||||||
Balance at Sep. 30, 2021 | $ 1,742.8 | $ 0.7 | $ 1,145 | $ 620.5 | $ (23.4) | ||||
Balance (in shares) at Sep. 30, 2021 | 70,100,000 | ||||||||
[1] | Additional Paid-in Capital (“APIC”). | ||||||||
[2] | Accumulated Other Comprehensive Income (Loss) ("AOCI"). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Operating Activities | ||||
Net income (loss) | [1] | $ (45.5) | $ (80.9) | $ (10.6) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | [1] | 175.2 | 391.1 | 277.8 |
Stock-based compensation | [1] | 22.6 | 17.2 | 16.4 |
Certain interest expense and other financing costs | [1] | 8.7 | 11.5 | 12.1 |
Beneficial lease amortization | [1] | 2.3 | ||
Loss on debt extinguishment | [1] | 60.2 | 14.7 | |
Gain on sale of fixed assets and other | [1] | (3.8) | (3.5) | (3.8) |
Deferred income taxes | [1] | (139.2) | (25.6) | (2.6) |
Loss on sale of Interior Products | [1],[2] | 360.6 | ||
338(h)(10) election refund | [1] | (5.1) | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | [1] | (81.3) | 78.4 | (18.5) |
Inventories | [1] | (225) | 73.4 | (82.8) |
Prepaid expenses and other current assets | [1] | 9.6 | (73.6) | (70.8) |
Accounts payable and accrued expenses | [1] | (56) | 72.2 | 92.1 |
Other assets and liabilities | [1] | (8.1) | 9.5 | 1.1 |
Net cash provided by (used in) operating activities | [1] | 78 | 479.3 | 212.7 |
Investing Activities | ||||
Purchases of property and equipment | [1] | (66.5) | (48.5) | (57) |
Acquisition of businesses, net | [1] | 5.1 | (164) | |
Proceeds from sale of Interior Products | [1],[2] | 836 | ||
Proceeds from the sale of assets | [1] | 4.4 | 4.4 | 9.3 |
Net cash provided by (used in) investing activities | [1] | 773.9 | (39) | (211.7) |
Financing Activities | ||||
Borrowings under revolving lines of credit | [1] | 252.3 | 2,038 | 2,100.1 |
Payments under revolving lines of credit | [1] | (509.3) | (1,870) | (2,114) |
Borrowings under term loan | [1] | 1,000 | ||
Payments under term loan | [1] | (948.3) | (9.7) | (9.7) |
Borrowings under senior notes | [1] | 350 | 300 | |
Payment under senior notes | [1] | (1,300) | (309.6) | |
Payment of debt issuance costs | [1] | (20.3) | (4.3) | (0.8) |
Payment of call premium | [1] | (31.7) | ||
Payments under equipment financing facilities and finance leases | [1] | (6.5) | (8.6) | (10) |
Payment of dividends on Preferred Stock | [1] | (24) | (24) | (24) |
Proceeds from issuance of common stock related to equity awards | [1] | 26.3 | 3.3 | 3.3 |
Payment of taxes related to net share settlement of equity awards | [1] | (4.5) | (2.9) | (3.7) |
Net cash provided by (used in) financing activities | [1] | (1,216) | 112.2 | (58.8) |
Effect of exchange rate changes on cash and cash equivalents | [1] | (0.5) | (0.2) | 0.2 |
Net increase (decrease) in cash and cash equivalents | [1] | (364.6) | 552.3 | (57.6) |
Cash and cash equivalents, beginning of period | [1] | 624.6 | 72.3 | 129.9 |
Cash and cash equivalents, end of period | [1] | 260 | 624.6 | 72.3 |
Supplemental Cash Flow Information | ||||
Operating cash flows provided by (used in) discontinued operations | [1] | (28.2) | 84.9 | 12.9 |
Investing cash flows provided by (used in) discontinued operations | [1] | (2.5) | (7.5) | (7.6) |
Cash paid during the period for: | ||||
Interest | [1] | 120 | 130.3 | 146.4 |
Income taxes paid (received), net of refunds | [1],[3] | $ (85.2) | $ (5.4) | $ (8.5) |
[1] | Unless otherwise noted, amounts include both continuing and discontinued operations. | |||
[2] | See Note 3 for additional information. | |||
[3] | Year ended September 30, 2021 amount includes $63.3 million related to the Interior Products divestiture. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Income taxes paid (received), net of refunds | [1],[2] | $ (85.2) | $ (5.4) | $ (8.5) |
[1] | Unless otherwise noted, amounts include both continuing and discontinued operations. | |||
[2] | Year ended September 30, 2021 amount includes $63.3 million related to the Interior Products divestiture. |
Company Overview
Company Overview | 12 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Company Overview | 1. Company Overview Beacon Roofing Supply, Inc. (the “Company”) was incorporated in the state of Delaware on August 22, 1997 and is the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products in the United States and Canada. On February 10, 2021, the Company completed the sale of its interior products and insulation businesses (“Interior Products”) to Foundation Building Materials Holding Company LLC (“FBM”), pursuant to that certain Equity Purchase Agreement, dated as of December 20, 2020 (the “Purchase Agreement”), by and between the Company and ASP Sailor Acquisition Corp. (“ASP”), for approximately $ 850 million in cash (subject to a working capital and certain other adjustments as set forth in the Purchase Agreement). As of September 30, 2021, the adjusted purchase price for Interior Products was $ 842.7 million. On January 29, 2021, ASP assigned the Purchase Agreement to FBM. Unless otherwise noted, the Company has reflected Interior Products as discontinued operations for all periods presented. For additional information, see Notes 2 and 3. On January 15, 2020, the Company announced the rebranding of its exterior products branches with the trade name “Beacon Building Products” (the “Rebranding”). The new name, and a related logo, were adopted at substantially all of Beacon’s exterior products branches. The Company operates its business under regional and local trade names and services customers in all 50 states throughout the U.S. and six provinces in Canada. The Company’s material subsidiaries are Beacon Sales Acquisition, Inc. and Beacon Roofing Supply Canada Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company transactions have been eliminated. Beginning with the condensed consolidated financial statements for the three months ended December 31, 2020, the Company has reflected Interior Products as discontinued operations for all periods presented. Unless otherwise noted, amounts and disclosures throughout these Notes to Consolidated Financial Statements relate to the Company's continuing operations. Certain prior period amounts have been reclassified to conform to current period presentation. Use of Estimates The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Significant items subject to such estimates include inventories, purchase price allocations, recoverability of goodwill and intangibles, and income taxes. Assumptions made in the development of these estimates contemplate the impact of the novel coronavirus (“COVID‑19”) on the economy and the Company’s anticipated results; however, actual amounts could differ materially from these estimates. Fiscal Year Beacon uses a fiscal reporting calendar which begins on October 1 and ends on September 30. The fiscal years presented are the years ended September 30, 2021 (“2021”), September 30, 2020 (“2020”), and September 30, 2019 (“2019”). Each of the Company’s fiscal quarters ends on the last day of the calendar month. As announced on August 17, 2021, the Company will change its fiscal year end from September 30 to December 31, which will be effective beginning January 1, 2022, for the year ending December 31, 2022. The Company plans to file a transition report on Form 10‑QT for the transition period from October 1, 2021, to December 31, 2021. This change better aligns the Company’s financial reporting calendar with many of its industry peers and provides internal benefits by shifting the timing of the budgeting, physical inventory, and performance review cycles away from the Company’s busiest time of year. Segment Information Operating segments are defined as components of a business that can earn revenue and incur expenses for which discrete financial information is evaluated on a regular basis by the chief operating decision maker (“CODM”) in order to decide how to allocate resources and assess performance. The Company’s CODM, the Chief Executive Officer, reviews consolidated results of operations to make decisions, therefore the Company views its operations and manages its business as one operating segment. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents also include unsettled credit card transactions. Cash equivalents are composed of money market funds which invest primarily in commercial paper or bonds with a rating of A-1 or better, and bank certificates of deposit. Accounts Receivable Accounts receivable are derived from unpaid invoiced amounts and are recorded at their net realizable value. The allowance for doubtful accounts is calculated based on actual historical write-offs and current economic factors and represents the Company’s best estimate of its credit exposure. Each month the Company reviews its receivables on a customer-by-customer basis and any balances that are deemed uncollectible are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s accounts receivable are primarily from customers in the building industry located in the United States and Canada, and no single customer represented at least 10% of the Company’s revenue during the year ended September 30, 2021 or accounts receivable as of September 30, 2021 . Concentrations of Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents and accounts receivable. The Company maintains the majority of its cash and cash equivalents with one financial institution, which management believes to be financially sound and with minimal credit risk. The Company’s deposits typically exceed amounts guaranteed by the Federal Deposit Insurance Corporation. Inventories (Including Vendor Rebates) Inventories, consisting substantially of finished goods, are valued at the lower of cost or market (net realizable value). Cost is determined using the moving weighted-average cost method. The Company’s arrangements with vendors typically provide for rebates after it makes a special purchase and/or monthly, quarterly and/or annual rebates of a specified amount of consideration payable when a number of measures have been achieved. Annual rebates are generally related to a specified cumulative level of purchases on a calendar-year basis. The Company accounts for such rebates as a reduction of the inventory value until the product is sold, at which time such rebates reduce cost of products sold in the consolidated statements of operations. Throughout the year, the Company estimates the amount of the periodic rebates based upon the expected level of purchases. The Company continually revises these estimates to reflect actual rebates earned based on actual purchase levels. Amounts due from vendors under these arrangements are included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheets. Property and Equipment Property and equipment acquired in connection with acquisitions are recorded at fair value as of the date of the acquisition and depreciated utilizing the straight-line method over the estimated remaining lives. All other additions are recorded at cost, and depreciation is computed using the straight-line method. The Company reviews the estimated useful lives of its fixed assets on an ongoing basis and the following table summarizes the estimates currently used: Asset Class Estimated Useful Life Buildings and improvements 40 years Equipment 3 to 7 years Furniture and fixtures 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Goodwill and Indefinite-Lived Intangibles On an annual basis and at interim periods when circumstances require, the Company tests the recoverability of its goodwill and indefinite-lived intangible assets and reviews for indicators of impairment. Examples of such indicators include a significant change in the business climate, unexpected competition, loss of key personnel or a decline in the Company’s market capitalization below the Company’s net book value. The Company performs impairment assessments at the reporting unit level, which is defined as an operating segment or one level below an operating segment, also known as a component. The Company currently has three components which it evaluates for aggregation by examining the distribution methods, sales mix, and operating results of each component to determine if these characteristics will be sustained over a long-term basis. For purposes of this evaluation, the Company expects its components to exhibit similar economic characteristics 3 - 5 years after events such as an acquisition within the Company’s core roofing business or management/business restructuring. Components that exhibit similar economic characteristics are subsequently aggregated into a single reporting unit. Based on the Company’s most recent impairment assessment performed as of August 31, 2021, it was determined that all of the Company’s components exhibited similar economic characteristics, and therefore should be aggregated into a single reporting unit (collectively, the “Reporting Unit”). To test for the recoverability of goodwill and indefinite-lived intangible assets, the Company first performs a qualitative assessment based on economic, industry and company-specific factors for all or selected reporting units to determine whether the existence of events and circumstances indicates that it is more likely than not that the goodwill or indefinite-lived intangible asset is impaired. Based on the results of the qualitative assessment, two additional steps in the impairment assessment may be required. The first step would require a comparison of each reporting unit’s fair value to the respective carrying value. If the carrying value exceeds the fair value, a second step is performed to measure the amount of impairment loss on a relative fair value basis, if any. Based on the Company’s most recent qualitative impairment assessment performed as of August 31, 2021, the Company concluded that there were no indicators of impairment, and that therefore it was more likely than not that the fair value of the goodwill and indefinite-lived intangible assets exceeded their net carrying amount, and therefore the quantitative two-step impairment test was not required. The Company amortizes certain identifiable intangible assets that have finite lives, currently consisting of non-compete agreements, customer relationships and trade names. Non-compete agreements are amortized on a straight-line basis over the terms of the associated contractual agreements; customer relationship assets are amortized on an accelerated basis based on the expected cash flows generated by the existing customers; and trade names are amortized on an accelerated basis over a five or ten year period . Amortizable intangible assets are tested for impairment, when deemed necessary, based on undiscounted cash flows and, if impaired, are written down to fair value based on either discounted cash flows or appraised values. In connection with certain financing arrangements, the Company has debt issuance costs that are amortized over the lives of the associated financings. Evaluation of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is measured by comparing the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. Fair Value Measurement The Company applies fair value accounting for all financial assets and liabilities that are reported at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a defined three-tier hierarchy to classify and disclose the fair value of assets and liabilities on both the date of their initial measurement as well as all subsequent periods. The hierarchy prioritizes the inputs used to measure fair value by the lowest level of input that is available and significant to the fair value measurement. The three levels are described as follows: Level 1 : Observable inputs. Quoted prices in active markets for identical assets and liabilities; Level 2 : Observable inputs other than the quoted price. Includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets and amounts derived from valuation models where all significant inputs are observable in active markets; and Level 3 : Unobservable inputs. Includes amounts derived from valuation models where one or more significant inputs are unobservable and require the Company to develop relevant assumptions. The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification as of each reporting period. Financial Derivatives The Company has entered into interest rate swaps to minimize the risks and costs associated with financing activities, as well as to maintain an appropriate mix of fixed-rate and floating-rate debt. The swap agreements are contracts to exchange variable-rate for fixed-interest rate payments over the life of the agreements. The Company's derivative instruments are designated as cash flow hedges, for which the Company records changes in their fair value, net of tax, in other comprehensive income. Net Sales The Company records net sales when performance obligations with the customer are satisfied. A performance obligation is a promise to transfer a distinct good to the customer and is the unit of account. The transaction price is allocated to each distinct performance obligation and recognized as net sales when, or as, the performance obligation is satisfied. All contracts have a single performance obligation as the promise to transfer the individual good is not separately identifiable from other promises and is, therefore, not distinct. Performance obligations are satisfied at a point in time and net sales are recognized when the customer accepts the delivery of a product or takes possession of a product with rights and rewards of ownership. For goods shipped by third party carriers, the Company recognizes revenue upon shipment since the terms are generally FOB shipping point at which time control passes to the customer. The Company also arranges for certain products to be shipped directly from the manufacturer to the customer. The Company recognizes the gross revenue for these sales upon shipment as the terms are FOB shipping point at which time control passes to the customer. The Company enters into agreements with customers to offer rebates, generally based on achievement of specified sales levels and various marketing allowances that are common industry practice. Reductions to net sales for customer programs and incentive offerings, including promotions and other volume-based incentives, are estimated using the most likely amount method and recorded in the period in which the sale occurs. Provisions for early payment discounts are accrued in the same period in which the sale occurs. The Company does not have any material payment terms as payment is received shortly after the transfer of control of the products to the customer. Commissions to internal sales teams are paid to obtain contracts. As these contracts are less than one year, these costs are expensed as incurred. The Company includes shipping and handling costs billed to customers in net sales. Related costs are accounted for as fulfillment activities and are recognized as cost of products sold when control of the products transfers to the customer. Leases The Company mostly operates in leased facilities, which are accounted for as operating leases. The leases typically provide for a base rent plus real estate taxes and insurance. Certain of the leases provide for escalating rents over the lives of the leases, and rent expense is recognized over the terms of those leases on a straight-line basis. The real estate leases expire between 2021 and 2038 . In addition, the Company leases equipment such as trucks and forklifts. Equipment leases are accounted for as either operating or finance leases. The equipment leases expire between 2021 and 2028 . The Company determines if an arrangement is a lease at inception. Operating and finance lease assets and liabilities are included within the consolidated balance sheets, with finance lease assets included in property and equipment, net. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rates implicit in most of the leases are not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. Lease assets include any prepaid lease payments and lease incentives. The Company’s lease terms include periods under options to extend or terminate the lease when it is reasonably certain that those options will be exercised. The Company generally uses the base, non-cancelable lease term when determining the lease assets and liabilities. Operating lease expense is recognized on a straight-line basis over the lease term. For finance leases, the lease asset is depreciated over the lease term and interest expense is recorded using the effective interest method. The Company’s lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company has elected to combine fixed payments for non-lease components with lease payments and account for them together as a single lease component, which increases the lease assets and liabilities. Payments under the Company’s lease agreements are primarily fixed. However, certain lease agreements contain variable payments, which are expensed as incurred and are not included in the operating lease assets and liabilities. These amounts include payments affected by the Consumer Price Index and reimbursements to landlords for items such as property insurance and common area costs. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Stock-Based Compensation The Company applies the fair value method to recognize compensation expense for stock-based awards. Using this method, the estimated grant-date fair value of the award is recognized on a straight-line basis over the requisite service period based on the portion of the award that is expected to vest. The Company estimates forfeitures at the time of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For awards with a performance-based vesting condition, the Company accrues stock-based compensation expense if it is probable that the performance condition will be achieved. Stock-based compensation expense for restricted stock units is measured based on the fair value of the Company’s common stock on the grant date. The Company utilizes the Black-Scholes option pricing model to estimate the grant-date fair value of option awards. The exercise price of option awards is set to equal the estimated fair value of the common stock at the date of the grant. The following weighted-average assumptions are also used to calculate the estimated fair value of option awards: Expected volatility : The expected volatility of the Company’s shares is estimated using the historical stock price volatility over the most recent period commensurate with the estimated expected term of the awards. Expected term : For employee stock option awards, the Company determines the weighted average expected term equal to the weighted period between the vesting period and the contract life of all outstanding options. Dividend yield : The Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future and, accordingly, uses an expected dividend yield of zero . Risk-free interest rate : The Company bases the risk-free interest rate on the implied yield available on a U.S. Treasury note with a term equal to the estimated expected term of the awards. Foreign Currency Translation The Company’s operations located outside of the United States where the local currency is the functional currency are translated into U.S. dollars using the current rate method. Results of operations are translated at the average rate of exchange for the period. Assets and liabilities are translated at the closing rates on the period end date. Gains and losses on translation of these accounts are accumulated and reported as a separate component of equity and other comprehensive income (loss). Gains and losses on foreign currency transactions are recognized in the consolidated statements of operations as a component of interest expense, financing costs, and other. Income Taxes The Company accounts for income taxes using the liability method, which requires it to recognize a current tax liability or asset for current taxes payable or refundable and a deferred tax liability or asset for the estimated future tax effects of temporary differences between the financial statement and tax reporting bases of assets and liabilities to the extent that they are realizable. Deferred tax expense (benefit) results from the net change in deferred tax assets and liabilities during the year. FASB ASC Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Based on this guidance, the Company analyzes its filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. Tax benefits from uncertain tax positions are recognized if it is more likely than not that the position is sustainable based solely on its technical merits. Net Income (Loss) per Share Basic net income (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents or the conversion of Preferred Stock. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock unit awards. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common stockholders by the fully diluted weighted-average number of common shares outstanding during the period. Holders of Preferred Stock participate in dividends on an as-converted basis when declared on common shares. As a result, Preferred Stock is classified as a participating security and thereby requires the allocation of income that would have otherwise been available to common stockholders when calculating net income (loss) per share. Diluted net income (loss) per share is calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income (loss) attributable to common stockholders and the weighted-average common shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules. Recent Accounting Pronouncements—Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes – Simplifying the Accounting for Income Taxes.” This guidance is intended to simplify the accounting for income taxes by removing certain exceptions, clarifying existing guidance and improving consistent application of the guidance. The Company early adopted this standard for the year ended September 30, 2021. The adoption of the standard did not have a material impact on the Company’s financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13 , “ Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments .” This guidance is intended to introduce a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. This new standard became effective for the Company on October 1, 2020 . The adoption of the new standard was done using the modified-retrospective approach, through a cumulative-effect adjustment to retained earnings as of October 1, 2020. The most significant effect of the standard was an increase to the Company’s accounts receivable reserve and a corresponding retained earnings adjustment of approximately $ 4.3 million on October 1, 2020. In January 2017, the FASB issued ASU 2017-04 , “ Simplifying the Accounting for Goodwill Impairment.” This guidance is intended to introduce a simplified approach to measurement of goodwill impairment, eliminating the need for a hypothetical purchase price allocation and instead measuring impairment by the amount a reporting unit’s carrying value exceeds its fair value. This new standard became effective for the Company on October 1, 2020 . The adoption of this new guidance did not have a material impact on the Company’s financial statements and related disclosures. Recent Accounting Pronouncements—Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, “ Business Combinations – Accounting for Contract Assets and Contact Liabilities from Contracts with Customers .” The guidance is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. The guidance requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with Topic 606 as if they had originated the contracts, as opposed to at fair value on the acquisition date. The standard will be effective for business combinations that occur after January 1, 2023. Early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting .” The guidance provides optional practical expedients to ease the potential burden in accounting for contract modifications and hedge accounting related to reference rate reform. In January 2021, the FASB issued ASU 2021-01, “ Reference Rate Reform (Topic 848), Scope ,” to clarify the scope of the guidance and reduce potential diversity in practice. The standard is effective as of March 12, 2020 through December 31, 2022. However, the standard is not applicable to contract modifications made, and hedging relationships entered into or evaluated after, December 31, 2022. The Company will evaluate and disclose the impact of this guidance in the period of election, as well as the nature and reason for doing so. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations On February 10, 2021, the Company completed the sale of Interior Products to FBM pursuant to the Purchase Agreement for approximately $ 850 million in cash (subject to a working capital and certain other adjustments as set forth in the Purchase Agreement). As of September 30, 2021, the adjusted purchase price for Interior Products was $ 842.7 million. The Company completed this divestiture of net assets previously acquired as part of the Allied Acquisition in 2018 (see Note 5 for additional information) to reduce net leverage, strengthen its balance sheet, enhance leadership focus, and provide the financial flexibility to pursue strategic growth initiatives in its core exteriors business. The following table reconciles major line items constituting pretax income (loss) from discontinued operations to net income (loss) from discontinued operations as presented in the consolidated statements of operations (in millions): Year Ended September 30, 2021 2020 2019 Net sales $ 357.9 $ 1,027.2 $ 1,109.1 Cost of products sold ( 264.2 ) ( 748.5 ) ( 800.1 ) Selling, general and administrative ( 79.1 ) ( 207.5 ) ( 218.2 ) Depreciation and amortization ( 13.0 ) ( 71.1 ) ( 74.4 ) Other income (loss) 0.1 0.5 ( 5.1 ) Loss on sale ( 360.6 ) — — Pretax income (loss) from discontinued operations ( 358.9 ) 0.6 11.3 Provision for (benefit from) income taxes ( 92.2 ) 0.2 3.0 Net income (loss) from discontinued operations $ ( 266.7 ) $ 0.4 $ 8.3 The loss on sale of $ 360.6 million for the year ended September 30, 2021 was calculated by comparing the purchase price (as adjusted) to the carrying value of the net assets of Interior Products as of February 10, 2021, the closing date of the sale. As Interior Products represented a component of the Company’s single reporting unit, the carrying value of the net assets of Interior Products included an allocation of $ 730.9 million of the Company’s consolidated goodwill balance. The Company allocated consolidated goodwill based on the relative fair value of the component, which was determined using the purchase price (as adjusted) of Interior Products and the market capitalization of the Company as of February 10, 2021. The net result of this allocation attributed a higher amount of goodwill than that which was directly associated with the Interior Products portion of the Allied Acquisition, thereby having a significant influence on the loss on the Interior Products divestiture transaction. The loss on sale reflects the finalized transaction costs and net working capital adjustment. The following table reconciles the carrying amounts of major classes of assets and liabilities of discontinued operations to total assets and liabilities of discontinued operations that were classified as held for sale in the consolidated balance sheets (in millions): September 30, 2020 1 Carrying amounts of major classes of assets held for sale: Accounts receivable, net $ 144.1 Inventories, net 73.2 Prepaid expenses and other current assets 26.5 Total current assets 243.8 Property and equipment, net 35.9 Goodwill 734.3 Intangibles, net 283.2 Operating lease assets 67.1 Total non-current assets 1,120.5 Total assets held for sale $ 1,364.3 Carrying amounts of major classes of liabilities held for sale: Accounts payable $ 68.8 Accrued expenses 54.1 Current operating lease liabilities 16.5 Total current liabilities 139.4 Non-current operating lease liabilities 49.9 Other long-term liabilities 3.5 Total non-current liabilities 53.4 Total liabilities held for sale $ 192.8 ___________________________ 1. Amounts reflect balances that were recast as a result of the Interior Products divestiture. There were no assets or liabilities held for sale as of September 30, 2021. |
Net Sales
Net Sales | 12 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales | 4. Net Sales The following table presents the Company’s net sales by line of business and geography for each period presented (in millions): U.S. Canada Total Year Ended September 30, 2021 Residential roofing products $ 3,443.4 $ 72.8 $ 3,516.2 Non-residential roofing products 1,551.7 137.1 1,688.8 Complementary building products 1,426.5 10.5 1,437.0 Total net sales $ 6,421.6 $ 220.4 $ 6,642.0 Year Ended September 30, 2020 Residential roofing products $ 3,023.0 $ 56.4 $ 3,079.4 Non-residential roofing products 1,504.6 112.2 1,616.8 Complementary building products 1,211.5 9.0 1,220.5 Total net sales $ 5,739.1 $ 177.6 $ 5,916.7 Year Ended September 30, 2019 Residential roofing products $ 2,779.7 $ 56.4 $ 2,836.1 Non-residential roofing products 1,437.1 122.4 1,559.5 Complementary building products 1,592.6 7.9 1,600.5 Total net sales $ 5,809.4 $ 186.7 $ 5,996.1 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 5. Net Income (Loss) Per Share The following table presents the components and calculations of basic and diluted net income (loss) per share for each period presented (in millions, except per share amounts; certain amounts may not recalculate due to rounding): Year Ended September 30, 2021 2020 2019 Numerator: Net income (loss) from continuing operations $ 221.2 $ ( 81.3 ) $ ( 18.9 ) Dividends on Preferred Stock ( 24.0 ) ( 24.0 ) ( 24.0 ) Net income (loss) from continuing operations attributable to common stockholders - Basic 197.2 ( 105.3 ) ( 42.9 ) Add back: dividends on Preferred Stock 1 24.0 — — Net income (loss) from continuing operations attributable to common stockholders - Diluted 221.2 ( 105.3 ) ( 42.9 ) Net income (loss) from discontinued operations attributable to common stockholders - Basic and Diluted ( 266.7 ) 0.4 8.3 Net income (loss) attributable to common stockholders - Basic $ ( 69.5 ) $ ( 104.9 ) $ ( 34.6 ) Net income (loss) attributable to common stockholders - Diluted $ ( 45.5 ) $ ( 104.9 ) $ ( 34.6 ) Denominator: Weighted-average common shares outstanding - basic 69.7 68.8 68.4 Effect of common share equivalents 1.1 — — Effect of convertible Preferred Stock 1 9.7 — — Weighted-average common shares outstanding - diluted 80.5 68.8 68.4 Net income (loss) per share: Basic - Continuing operations $ 2.83 $ ( 1.53 ) $ ( 0.63 ) Basic - Discontinued operations ( 3.83 ) 0.01 0.12 Basic net income (loss) per share $ ( 1.00 ) $ ( 1.52 ) $ ( 0.51 ) Diluted - Continuing operations $ 2.75 $ ( 1.53 ) $ ( 0.63 ) Diluted - Discontinued operations ( 3.32 ) 0.01 0.12 Diluted net income (loss) per share $ ( 0.57 ) $ ( 1.52 ) $ ( 0.51 ) ____________________________ 1. The hypothetical conversion of the Preferred Stock became dilutive for the year ended September 30, 2021, primarily stemming from the significant income from continuing operations and offsetting loss from discontinued operations in 2021, and their combined effect on the Company’s calculation of diluted net income (loss) per share. The following table includes the number of shares that may be dilutive common shares in the future. These shares were not included in the computation of diluted net income (loss) per share because the effect was either anti-dilutive or the requisite performance conditions were not met (in millions): Year Ended September 30, 2021 2020 2019 Stock options 0.5 2.0 1.3 Restricted stock units — 0.3 0.1 Preferred Stock — 9.7 9.7 In connection with the acquisition of Allied Building Products Corp. (“Allied”) on January 2, 2018 (the “Allied Acquisition”), the Company completed the sale of 400,000 shares of Series A Cumulative Convertible Participating Preferred Stock, par value $ 0.01 per share (the “Preferred Stock”), with an aggregate liquidation preference of $ 400.0 million, at a purchase price of $ 1,000 per share, to CD&R Boulder Holdings, L.P. The Preferred Stock is convertible perpetual participating preferred stock of the Company, and conversion of the Preferred Stock into $ 0.01 par value shares of the Company’s common stock will be at a conversion price of $ 41.26 per share (or 9,694,619 shares of common stock). The Preferred Stock accumulates dividends at a rate of 6.0 % per annum (payable in cash or in-kind, subject to certain conditions). The Preferred Stock is not mandatorily redeemable; therefore, it is classified as mezzanine equity in the Company’s consolidated balance sheets. Holders of Preferred Stock participate in dividends on an as-converted basis when declared on common shares. As a result, Preferred Stock is classified as a participating security and thereby requires the allocation of net income (but not net loss) that would have otherwise been available to common stockholders when calculating net income (loss) per share. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 6. Stock-based Compensation On December 23, 2019, the Board of Directors of the Company approved the Beacon Roofing Supply, Inc. Second Amended and Restated 2014 Stock Plan (the “2014 Plan”). On February 11, 2020, the stockholders of the Company approved an additional 4,850,000 shares to be reserved for issuance under the 2014 Plan. The 2014 Plan, which was originally approved by the stockholders on February 12, 2014, provides for discretionary awards of stock options, stock awards, restricted stock units, and stock appreciation rights to selected employees and non-employee directors. The 2014 Plan mandates that all lapsed, forfeited, expired, terminated, cancelled and withheld shares, including those from the predecessor plan, be returned to the 2014 Plan and made available for issuance. As of September 30, 2021, there were 5,335,879 shares of common stock available for issuance. The 2014 Plan is the only plan maintained by the Company pursuant to which equity awards are granted. Equity awards granted in fiscal year 2015 and later contain a “double trigger” change in control mechanism. Unless an award is continued or assumed by a public company in an equitable manner, an award shall become fully vested immediately prior to a change in control (at 100 % of the grant target in the case of a performance-based restricted stock unit award). If an award is so continued or assumed, vesting will continue in accordance with the terms of the award, unless there is a qualifying termination within one-year following the change in control, in which event the award shall immediately become fully vested (at 100 % of the grant target in the case of a performance-based restricted stock unit award). Options granted prior to fiscal year 2015 vest immediately upon a change in control of the Company. Stock Options Non-qualified stock options generally expire 10 years after the grant date and, except under certain conditions, the options are subject to continued employment and vest in three annual installments over the three-year period following the grant dates. The fair values of the options granted for the year ended September 30, 2021 were estimated on the dates of grants using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended September 30, 2021 2020 2019 Risk-free interest rate 0.44 % 1.61 % 2.86 % Expected volatility 48.15 % 34.26 % 29.68 % Expected life (in years) 5.36 5.26 5.22 Dividend yield — — — The following table summarizes all stock option activity for the periods presented (in millions, except per share amounts and time periods): Options Weighted- Weighted- Aggregate 1 Balance as of September 30, 2020 2.5 $ 33.09 5.9 $ 6.9 Granted 0.3 35.78 Exercised ( 0.9 ) 29.88 Canceled/Forfeited ( 0.1 ) 40.32 Expired ( 0.0 ) 15.47 Balance as of September 30, 2021 1.8 $ 34.88 5.8 $ 24.9 Vested and expected to vest after September 30, 2021 1.8 $ 34.89 5.8 $ 24.5 Exercisable as of September 30, 2021 1.1 $ 36.35 4.5 $ 14.5 ________________________________________ 1. Aggregate intrinsic value represents the difference between the closing fair value of the underlying common stock and the exercise price of outstanding, in-the-money options on the date of measurement. During the years ended September 30, 2021, 2020, and 2019, the Company recorded stock-based compensation expense related to stock options of $ 4.4 million , $ 4.1 million , and $ 3.9 million , respectively. As of September 30, 2021, there was $ 4.3 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 1.7 years. The following table summarizes additional information on stock options for the periods presented (in millions, except per share amounts): Year Ended September 30, 2021 2020 2019 Weighted-average fair value of stock options granted $ 15.62 $ 10.35 $ 8.91 Total grant date fair value of stock options vested $ 5.6 $ 4.3 $ 3.9 Total intrinsic value of stock options exercised $ 15.7 $ 2.1 $ 2.8 Restricted Stock Units Restricted stock unit (“RSU”) awards granted to employees are subject to continued employment and generally vest on the third anniversary of the grant date. The Company also grants certain RSU awards to management that contain one or more additional vesting conditions tied directly to a defined performance metric for the Company (“PSUs”). The actual number of PSUs that will vest can range from 0 % to 200 % of the original grant amount, depending upon actual Company performance below or above the established performance metric targets. The Company estimates performance in relation to the defined targets when determining the projected number of PSUs that are expected to vest and calculating the related stock-based compensation expense. RSUs granted to non-employee directors are subject to continued service and vest on the first anniversary of the grant date (except under certain conditions). Generally, the common shares underlying the RSUs are not eligible for distribution until the non-employee director’s service on the Board has terminated, and for non-employee director RSU grants made prior to fiscal year 2014, the share distribution date is six months after the director’s termination of service on the board. Beginning in fiscal year 2016, the Company enacted a policy that allows any non-employee directors who have Beacon equity holdings (defined as common stock and outstanding vested equity awards) with a total fair value that is greater than or equal to five times the annual Board cash retainer to elect to have any future RSU grants settle simultaneously with vesting. The following table summarizes all restricted stock unit activity for the periods presented (in millions, except per share amounts): RSUs Weighted-Average Grant Date Fair Value Balance as of September 30, 2020 1.2 $ 33.55 Granted 0.4 38.18 Released ( 0.4 ) 41.50 Canceled/Forfeited ( 0.2 ) 29.87 Balance as of September 30, 2021 1.0 $ 33.76 Vested and expected to vest after September 30, 2021 1 1.1 $ 33.91 _________________________________________ 1. As of September 30, 2021, outstanding PSUs were expected to vest at greater than 100 % of their original grant amount. During the years ended September 30, 2021, 2020, and 2019, the Company recorded stock-based compensation expense related to RSUs of $ 14.0 million , $ 11.9 million , and $ 11.4 million , respectively. As of September 30, 2021, there was $ 15.3 million of total unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 1.8 years. The following table summarizes additional information on RSUs for the period presented (in millions, except per share amounts): Year Ended September 30, 2021 2020 2019 Weighted-average fair value of RSUs granted $ 38.18 $ 31.81 $ 28.02 Total grant date fair value of RSUs vested $ 16.5 $ 14.4 $ 16.1 Total intrinsic value of RSUs released $ 15.2 $ 9.8 $ 11.5 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Sep. 30, 2021 | |
Prepaid Expenses And Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 7. Prepaid Expenses and Other Current Assets The following table summarizes the significant components of prepaid expenses and other current assets (in millions): September 30, 2021 2020 Vendor rebates $ 289.5 $ 306.2 Other 56.4 45.6 Total prepaid expenses and other current assets $ 345.9 $ 351.8 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 8. Property and Equipment The following table provides a detailed breakout of property and equipment, by type (in millions): September 30, 2021 2020 Land and buildings $ 85.9 $ 76.5 Equipment 417.3 397.3 Furniture and fixtures 58.9 42.1 Finance lease assets 29.0 9.7 Total property and equipment 591.1 525.6 Accumulated depreciation ( 354.5 ) ( 317.8 ) Total property and equipment, net $ 236.6 $ 207.8 Depreciation expense for the years ended September 30, 2021, 2020, and 2019 was $ 58.9 million , $ 58.1 million , and $ 60.5 million , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 9. Goodwill and Intangible Assets Goodwill The following table sets forth the change in the carrying amount of goodwill during the years ended September 30, 2021 and 2020, respectively (in millions): Balance as of September 30, 2019 $ 1,756.3 Translation and other adjustments ( 0.2 ) Balance as of September 30, 2020 $ 1,756.1 Translation and other adjustments 4.8 Balance as of September 30, 2021 $ 1,760.9 The changes in the carrying amount of goodwill for the year ended September 30, 2021 were driven primarily by final purchase price adjustments related to the divestiture of Interior Products. Intangible Assets The following table summarizes intangible assets by category (in millions, except time period amounts): September 30, Weighted- 1 2021 2020 (Years) Amortizable intangible assets: Non-compete agreements $ 0.2 $ 0.2 0.7 Customer relationships 1,076.2 1,085.5 15.4 Beneficial lease arrangements — 3.7 — Total amortizable intangible assets 1,076.4 1,089.4 Accumulated amortization ( 671.4 ) ( 581.2 ) Total amortizable intangible assets, net $ 405.0 $ 508.2 Indefinite-lived trademarks 9.8 9.8 Total intangibles, net $ 414.8 $ 518.0 ___________________________________________ 1. As of September 30, 2021 . In the second quarter of fiscal year 2020, in connection with the Rebranding, the Company incurred non-cash accelerated intangible asset amortization of $ 142.6 million related to the write-off of certain trade names, primarily Allied (exterior products only), Roofing Supply Group and JGA. The Company used an income approach, specifically the relief from royalty method, to determine the fair value of remaining indefinite-lived trademarks. Various Level 3 fair value assumptions were used in the determination of the estimated fair value, including items such as sales growth rates, royalty rates, discount rates, and other prospective financial information. For the years ended September 30, 2021, 2020, and 2019, the Company recorded $ 103.3 million , $ 261.9 million , and $ 142.9 million , respectively, of amortization expense relating to the above-listed intangible assets. The intangible asset lives range from 5 to 20 years and the weighted-average remaining life was 15.4 years as of September 30, 2021. The following table summarizes the estimated future amortization expense for intangible assets (in millions): Year Ending September 30, 2022 $ 82.1 2023 66.2 2024 53.1 2025 42.8 2026 34.5 Thereafter 126.3 Total future amortization expense $ 405.0 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | 10. Financing Arrangements The following table summarizes all outstanding debt (presented net of unamortized debt issuance costs) and other financing arrangements from the respective periods presented (in millions): September 30, 2021 2020 Revolving Lines of Credit 2023 ABL: 2023 U.S. Revolver 1 $ — $ 251.1 2026 ABL: 2026 U.S. Revolver — — 2026 Canada Revolver — — Current portion — — Borrowings under revolving lines of credit, net $ — $ 251.1 Long-term Debt, net Term Loan: 2025 Term Loan 2 $ — $ 922.3 2028 Term Loan 3 981.7 — Current portion ( 10.0 ) ( 9.7 ) Long-term borrowings under term loan 971.7 912.6 Senior Notes: 2025 Senior Notes 4 — 1,285.7 2026 Senior Notes 5 296.6 295.9 2029 Senior Notes 6 346.2 — Current portion — — Long-term borrowings under senior notes 642.8 1,581.6 Long-term debt, net $ 1,614.5 $ 2,494.2 Equipment Financing Facilities, net Equipment financing facilities 7 $ — $ 2.6 Current portion — ( 2.6 ) Long-term obligations under equipment financing, net $ — $ — ___________________________________________________ 1. Effective rate on borrowings of 1.89 % as of September 30, 2020 . 2. Interest rate of 2.41 % as of September 30, 2020 . 3. Interest rate of 2.33 % as of September 30, 2021 . 4. Interest rate of 4.88 as of September 30, 2020 . 5. Interest rate of 4.50 % for all periods presented. 6. Interest rate of 4.125 % as of September 30, 2021 . 7. Fixed interest rates ranging from 2.33 % to 2.89 % as of September 30, 2020 . 2021 Debt Refinancing In May 2021, the Company entered into various financing arrangements to refinance certain debt instruments to take advantage of lower market interest rates (the “2021 Debt Refinancing”). The transactions included a new $ 350.0 million issuance of senior notes (the “2029 Senior Notes”). In addition, the Company entered into a second amended and restated credit agreement for its $ 1.30 billion asset-based revolving line of credit (the “2026 ABL”), and an amended and restated term loan credit agreement for a term loan of $ 1.00 billion (the “2028 Term Loan”), which together are defined as the “New Senior Secured Credit Facilities . ” On May 19, 2021, the Company used the net proceeds from the 2029 Senior Notes offering, together with cash on hand and borrowings under the New Senior Secured Credit Facilities, to redeem all $ 1.30 billion aggregate principal amount outstanding of the 2025 Senior Notes (as defined below) at a redemption price of 102.438 %, to refinance all outstanding borrowings under the 2025 Term Loan (as defined below), and to pay all related accrued interest, fees and expenses. The financing arrangements entered into in connection with the 2021 Debt Refinancing had certain lenders who also participated in previous financing arrangements entered into by the Company; therefore, portions of the transactions were accounted for as either debt extinguishments or debt modifications. The Company recognized a loss on debt extinguishment totaling $ 50.7 million. In addition, the Company capitalized debt issuance costs totaling $ 29.0 million related to the 2029 Senior Notes, 2026 ABL and 2028 Term Loan, which are being amortized over the terms of the financing arrangements. 2029 Senior Notes On May 10, 2021, the Company and certain subsidiaries of the Company as guarantors completed a private offering of $ 350.0 million aggregate principal amount of 4.125 % senior unsecured notes due 2029 at an issue price of 100.000 %. The 2029 Senior Notes mature on May 15, 2029 and bear interest at a rate of 4.125 % per annum, payable on May 15 and November 15 of each year, commencing on November 15, 2021 . The 2029 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company’s active United States subsidiaries. The 2029 Senior Notes and related subsidiary guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The 2029 Senior Notes and related subsidiary guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws. As of September 30, 2021, the outstanding balance on the 2029 Senior Notes, net of $ 3.8 million of unamortized debt issuance costs, was $ 346.2 million . 2026 ABL On May 19, 2021, the Company entered into a $ 1.30 billion senior secured asset-based revolving credit facility with Wells Fargo Bank, N.A. and a syndicate of other lenders. The 2026 ABL provides for revolving loan commitments in both the United States (“2026 U.S. Revolver”) in an amount up to $ 1.25 billion and Canada (“2026 Canada Revolver”) in an amount up to $ 50.0 million (as such amounts may be reallocated pursuant to the terms of the 2026 ABL). The 2026 ABL has a maturity date of May 19, 2026 . The 2026 ABL has various borrowing tranches with an interest rate based, at the Company’s option, on a base rate, plus an applicable margin, or a reserve adjusted LIBOR rate, plus an applicable margin. The applicable margin for borrowings is based on the Company’s quarterly average excess availability as determined by reference to a borrowing base and ranges from 0.25 % to 0.75 % per annum in the case of base rate borrowings and 1.25 % to 1.75 % per annum in the case of LIBOR borrowings. The current unused commitment fees on the 2026 ABL are 0.20 % per annum. The 2026 ABL contains a springing financial covenant that requires a minimum 1.00 : 1.00 Fixed Charge Coverage Ratio (consolidated EBITDA less capital expenditures to fixed charges, each as defined in the 2026 ABL credit agreement) as of the end of each fiscal quarter (in each case, calculated on a trailing four fiscal quarter basis). The covenant would become operative if the Company failed to maintain a specified minimum amount of availability to borrow under the 2026 ABL, which was not applicable to the Company as of September 30, 2021. In addition, the New Senior Secured Credit Facilities and the 2029 Senior Notes are subject to negative covenants that, among other things and subject to certain exceptions, limit the Company’s ability and the ability of its restricted subsidiaries to: (i) incur indebtedness (including guarantee obligations); (ii) incur liens; (iii) engage in mergers or other fundamental changes; (iv) dispose of certain property or assets; (v) make certain payments, dividends or other distributions; (vi) make certain acquisitions, investments, loans and advances; (vii) prepay certain indebtedness; (viii) change the nature of their business; (ix) engage in certain transactions with affiliates; (x) engage in sale-leaseback transactions; and (xi) enter into certain other restrictive agreements. The 2026 ABL is secured by a first priority lien over substantially all of the Company’s and each guarantor’s accounts and other receivables, chattel paper, deposit accounts (excluding any such account containing identifiable proceeds of Term Priority Collateral (as defined below)), inventory, and, to the extent related to the foregoing and other ABL Priority Collateral, general intangibles (excluding equity interests in any subsidiary of the Company and all intellectual property), instruments, investment property (but not equity interests in any subsidiary of the Company), commercial tort claims, letters of credit, supporting obligations and letter of credit rights, together with all books, records and documents related to, and all proceeds and products of, the foregoing, subject to certain customary exceptions (the “ABL Priority Collateral”), and a second priority lien over substantially all of the Company’s and each guarantor’s other assets, including all of the equity interests of any subsidiary held by the Company or any guarantor, subject to certain customary exceptions (the “Term Priority Collateral”). Beacon Sales Acquisition, Inc., a Delaware corporation and subsidiary of the Company, is a U.S. Borrower under the 2026 ABL and Beacon Roofing Supply Canada Company, an unlimited liability company organized under the laws of Nova Scotia and subsidiary of the Company, is a Canadian borrower under the 2026 ABL. The 2026 ABL is fully and unconditionally guaranteed, on a joint and several basis, by the Company’s active United States subsidiaries. As of September 30, 2021 , there was no balance outstanding on the 2026 ABL and there was $ 7.7 million of unamortized debt issuance costs included in the consolidated balance sheets in other assets, net. The Company also had outstanding standby letters of credit related to the 2026 U.S. Revolver in the amount of $ 12.5 million as of September 30, 2021. 2028 Term Loan On May 19, 2021, the Company entered into a $ 1.00 billion senior secured term loan B facility with Citibank, N.A. and a syndicate of other lenders. The 2028 Term Loan requires quarterly principal payments in the amount of $ 2.5 million, with the remaining outstanding principal to be paid on its May 19, 2028 maturity date. The interest rate is based, at the Company’s option, on a base rate, plus an applicable margin, or a reserve adjusted LIBOR rate, plus an applicable margin. The applicable margin for the 2028 Term Loan ranges, depending on the Company’s consolidated total leverage ratio (consolidated total indebtedness to consolidated EBITDA, each as defined in the 2028 Term Loan credit agreement), from 1.25 % to 1.50 % per annum in the case of base rate borrowings and 2.25 % to 2.50 % per annum in the case of LIBOR borrowings. The 2028 Term Loan is secured by a shared first-priority lien on the Term Priority Collateral and a shared second-priority lien on the ABL Priority Collateral. Certain excluded assets will not be included in the Term Priority Collateral and the ABL Priority Collateral. The 2028 Term Loan is fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company’s active United States subsidiaries. As of September 30, 2021, the outstanding balance on the 2028 Term Loan, net of $ 15.8 million of unamortized debt issuance costs, was $ 981.7 million . 2019 Debt Refinancing 2026 Senior Notes On October 9, 2019, the Company, and certain subsidiaries of the Company as guarantors, completed a private offering of $ 300.0 million aggregate principal amount of 4.50 % Senior Secured Notes due 2026 (the “2026 Senior Notes”) at an issue price of 100.000 %. The 2026 Senior Notes mature on November 15, 2026 and bear interest at a rate of 4.50 % per annum, payable on May 15 and November 15 of each year, commencing on May 15, 2020 . The 2026 Senior Notes and related subsidiary guarantees are secured by a shared first-priority lien on the Term Priority Collateral and a shared second-priority lien on the ABL Priority Collateral. Certain excluded assets will not be included in the Term Priority Collateral and the ABL Priority Collateral. The 2026 Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by certain of the Company’s active United States subsidiaries. The 2026 Senior Notes and related subsidiary guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act, to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The 2026 Senior Notes and related subsidiary guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws. On October 28, 2019, the Company used the net proceeds from the offering, together with cash on hand and available borrowings under the 2023 ABL (as defined below), to redeem all $ 300.0 million aggregate principal amount outstanding of the 2023 Senior Notes (as defined below) at a redemption price of 103.188 % and to pay all related accrued interest, fees and expenses. The intent of the transaction was to take advantage of lower market interest rates by refinancing the then-existing 6.375% Senior Notes due 2023 (the “2023 Senior Notes”) with the 2026 Senior Notes. The Company accounted for the refinance as a debt extinguishment of the 2023 Senior Notes and an issuance of the 2026 Senior Notes. As a result, the Company recorded a loss on debt extinguishment of $ 14.7 million in the year ended September 30, 2020. The Company has capitalized debt issuance costs of $ 4.7 million related to the 2026 Senior Notes, which are being amortized over the term of the financing arrangements. As of September 30, 2021, the outstanding balance on the 2026 Senior Notes, net of $ 3.4 million of unamortized debt issuance costs, was $ 296.6 million . Financing - Allied Acquisition In connection with the Allied Acquisition, the Company entered into various financing arrangements totaling $ 3.57 billion, including an asset-based revolving line of credit of $ 1.30 billion (“2023 ABL”), $ 525.0 million of which was drawn at closing, and a $ 970.0 million term loan (“2025 Term Loan”). The Company also raised an additional $ 1.30 billion through the issuance of senior notes (the “2025 Senior Notes”). The proceeds from these financing arrangements were used to finance the Allied Acquisition, to refinance or otherwise extinguish all third-party indebtedness, to pay fees and expenses associated with the acquisition, and to provide working capital and funds for other general corporate purposes. The Company capitalized new debt issuance costs totaling approximately $ 65.3 million related to the 2023 ABL, the 2025 Term Loan and the 2025 Senior Notes, which were being amortized over the term of the financing arrangements. 2023 ABL On January 2, 2018, the Company entered into a $ 1.30 billion asset-based revolving line of credit with Wells Fargo Bank, N.A. and a syndicate of other lenders. The 2023 ABL provided for revolving loans in both the United States (“2023 U.S. Revolver”) in an amount up to $ 1.25 billion and Canada in an amount up to $ 50.0 million. The 2023 ABL had an original maturity date of January 2, 2023 . The 2023 ABL had various borrowing tranches with an interest rate based, at the Company’s option, on a base rate, plus an applicable margin, or a reserve adjusted LIBOR rate, plus an applicable margin. On May 19, 2021, in conjunction with the 2021 Debt Refinancing, the Company wrote off $ 0.8 million of related debt issuance costs. There was no principal balance outstanding on the 2023 ABL at the time of the refinancing. 2025 Term Loan On January 2, 2018, the Company entered into a $ 970.0 million term loan with Citibank N.A., and a syndicate of other lenders. The 2025 Term Loan required quarterly principal payments in the amount of $ 2.4 million, with the remaining outstanding principal to be paid on its original maturity date of January 2, 2025 . The interest rate was based, at the Company’s option, on a base rate, plus an applicable margin, or a reserve adjusted LIBOR rate, plus an applicable margin. The applicable margin was 1.25 % per annum with respect to base rate borrowings and 2.25 % per annum with respect to LIBOR borrowings. The Company had the option of selecting a LIBOR period that determined the rate at which interest would accrue, as well as the period in which interest payments were made. In February 2021, the Company made an additional principal payment of $ 423.9 million and wrote off $ 9.5 million of related debt issuance costs, which is reflected in the loss on extinguishment in the consolidated statement of operations. On May 19, 2021, in conjunction with the 2021 Debt Refinancing, the Company paid the remaining $ 517.0 million balance of the 2025 Term Loan and wrote off $ 1.1 million of related debt issuance costs. 2025 Senior Notes On October 25, 2017, Beacon Escrow Corporation, a wholly owned subsidiary of the Company, completed a private offering of $ 1.30 billion aggregate principal amount of 4.875 % Senior Notes due 2025 at an issue price of 100.000 %. The 2025 Senior Notes were subsequently assumed by the Company. The 2025 Senior Notes had a coupon rate of 4.875 % per annum and were payable semi-annually in arrears, beginning May 1, 2018. There were early payment provisions in the indenture under which the Company would be subject to redemption premiums. On May 19, 2021, in conjunction with the 2021 Debt Refinancing, the Company redeemed all $ 1.30 billion aggregate principal amount outstanding of the 2025 Senior Notes at a redemption price of 102.438 % plus accrued interest and wrote off $ 12.5 million of related unamortized debt issuance costs. Other Information The following table presents annual principal payments for all outstanding financing arrangements for each of the next five years and thereafter (in millions): Year Ending September 30, 2026 ABL 2028 Term Loan Senior Notes 1 Total 2022 $ — $ 10.0 $ — $ 10.0 2023 — 10.0 — 10.0 2024 — 10.0 — 10.0 2025 — 10.0 — 10.0 2026 — 10.0 — 10.0 Thereafter — 947.5 650.0 1,597.5 Total debt — 997.5 650.0 1,647.5 Unamortized debt issuance costs — ( 15.8 ) ( 7.2 ) ( 23.0 ) Total debt, net $ — $ 981.7 $ 642.8 $ 1,624.5 __________________________________ 1. Represent principal amounts for 2026 Senior Notes and 2029 Senior Notes. Under the terms of the 2026 ABL, the 2028 Term Loan, the 2026 Senior Notes and the 2029 Senior Notes, the Company is limited in making certain restricted payments, including dividends on its common stock. Based on the provisions in the respective debt agreements and given the Company’s intention to not pay common stock dividends in the foreseeable future, the Company does not believe that the restrictions are significant. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 11. Leases The following table summarizes components of lease costs recognized in the consolidated statements of operations (in millions; amounts include both continuing and discontinued operations): Year Ended September 30, 2021 2020 Operating lease costs $ 106.1 $ 104.5 Finance lease costs: Amortization of right-of-use assets 5.2 4.4 Interest on lease obligations 0.5 0.1 Variable lease costs 9.2 8.6 Total lease costs $ 121.0 $ 117.6 The following table presents supplemental cash flow information related to the Company's leases (in millions): Year Ended September 30, 2021 2020 Cash paid for amounts included in measurement of lease obligations: Operating cash flows from operating leases $ 106.3 $ 118.7 Operating cash flows from finance leases $ 0.5 $ 0.2 Financing cash flows from finance leases $ 4.0 $ 4.3 Right-of-use assets obtained in exchange for new finance lease liabilities $ 29.1 $ 6.2 Right-of-use assets obtained in exchange for new operating lease liabilities $ 55.4 $ 26.0 As of September 30, 2021, the Company’s operating leases had a weighted-average remaining lease term of 5.9 years and a weighted-average discount rate of 3.57 % , and the Company’s finance leases had a weighted-average remaining lease term of 5.4 years and a weighted-average discount rate of 3.41 % . The following table summarizes future lease payments as of September 30, 2021 (in millions): Year Ending September 30, Operating Leases Finance Leases 2022 $ 100.9 $ 5.8 2023 87.8 5.8 2024 74.3 5.8 2025 52.3 5.8 2026 39.0 4.8 Thereafter 88.5 2.3 Total future lease payments 442.8 30.3 Imputed interest ( 43.0 ) ( 2.4 ) Total lease liabilities $ 399.8 $ 27.9 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies The Company is subject to loss contingencies pursuant to various federal, state and local environmental laws and regulations; however, the Company is not aware of any reasonably possible losses that would have a material impact on its results of operations, financial position, or liquidity. Potential loss contingencies include possible obligations to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical or other substances by the Company or by other parties. In connection with its acquisitions, the Company’s practice is to request indemnification for any and all known material liabilities of significance as of the respective dates of acquisition. Historically, environmental liabilities have not had a material impact on the Company’s results of operations, financial position or liquidity. The Company is subject to litigation from time to time in the ordinary course of business; however, the Company does not expect the results, if any, to have a material adverse impact on its results of operations, financial position or liquidity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 13. Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) is composed of certain gains and losses that are excluded from net income under GAAP and instead recorded as a separate element of stockholders’ equity. The following table summarizes the components of and changes in accumulated other comprehensive loss (in millions): Foreign Derivative Currency Financial AOCI Balance as of September 30, 2018 $ ( 17.3 ) $ — $ ( 17.3 ) Other comprehensive income (loss) before reclassifications ( 1.7 ) ( 1.6 ) ( 3.3 ) Reclassifications out of other comprehensive income (loss) — — — Balance as of September 30, 2019 $ ( 19.0 ) $ ( 1.6 ) $ ( 20.6 ) Other comprehensive income (loss) before reclassifications ( 0.7 ) ( 13.4 ) ( 14.1 ) Reclassifications out of other comprehensive income (loss) — — — Balance as of September 30, 2020 $ ( 19.7 ) $ ( 15.0 ) $ ( 34.7 ) Other comprehensive income (loss) before reclassifications 4.0 7.3 11.3 Reclassifications out of other comprehensive income (loss) — — — Balance as of September 30, 2021 $ ( 15.7 ) $ ( 7.7 ) $ ( 23.4 ) Gains (losses) on derivative instruments are recognized in the consolidated statements of operations in interest expense, financing costs, and other. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The Company recorded a provision for (benefit from) income taxes of $ 77.3 million , $(27.0) million and $(3.2) million for the years ended September 30, 2021, 2020 and 2019, respectively. The following table summarizes the components of the income tax provision (benefit) (in millions): Year Ended September 30, 2021 2020 2019 Current: Federal 1 $ 28.4 $ ( 1.5 ) $ ( 2.5 ) Foreign 3.6 1.4 0.6 State 13.3 0.5 1.0 Total current taxes 45.3 0.4 ( 0.9 ) Deferred: Federal 27.6 ( 21.0 ) ( 1.4 ) Foreign 0.1 0.2 — State 4.3 ( 6.6 ) ( 0.9 ) Total deferred taxes 32.0 ( 27.4 ) ( 2.3 ) Provision for (benefit from) income taxes $ 77.3 $ ( 27.0 ) $ ( 3.2 ) The following table is a reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the periods presented: Year Ended September 30, 2021 2020 2019 U.S. federal income taxes at statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.6 % 4.1 % 1.1 % Share-based payments ( 0.3 %) ( 0.5 %) ( 1.9 %) Deferred tax asset/liability remeasurement 1 0.0 % 0.6 % 0.0 % Repatriation transition tax 1 0.0 % 0.0 % 2.1 % Non-deductible meals and entertainment 0.2 % ( 0.8 %) ( 6.4 %) Other 0.4 % 0.5 % ( 1.4 %) Effective tax rate 25.9 % 24.9 % 14.5 % _____________________________ 1. 2020 includes the impact of carryback of NOLs to 2016 tax year and realization of 35 % statutory rate. Deferred income taxes reflect the tax consequences of temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax law. These temporary differences are determined according to ASC 740 Income Taxes. The following table presents temporary differences that give rise to deferred tax assets and liabilities for the periods presented (in millions): September 30, 2021 2020 Deferred tax assets: Deferred compensation $ 9.0 $ 10.4 Allowance for doubtful accounts 5.6 5.2 Accrued vacation and other 15.1 9.0 Inventory valuation 15.0 12.7 Tax loss carryforwards 1 0.8 3.1 Unrealized loss on financial derivatives 2.4 4.8 Lease liability 100.7 94.8 Excess tax over book depreciation and amortization 15.4 — Total deferred tax assets 164.0 140.0 Deferred tax liabilities: Excess tax over book depreciation and amortization — ( 115.3 ) Lease right-of-use asset ( 100.2 ) ( 96.5 ) Total deferred tax liabilities ( 100.2 ) ( 211.8 ) Net deferred income tax assets (liabilities) $ 63.8 $ ( 71.8 ) _____________________________ 1. Composed of net operating loss, foreign tax, and alternative minimum tax carryforwards. The Company acquired $ 135.3 million of federal and state net operating loss (“NOL”) carryforwards as part of its acquisition of Roofing Supply Group, LLC in fiscal year 2016. For the year ended September 30, 2021 , the Company utilized the remaining $ 25.4 million of federal NOLs. The Company’s non-domestic subsidiary, Beacon Roofing Supply Canada Company (“BRSCC”), is treated as a controlled foreign corporation. BRSCC’s taxable income, which reflects all of the Company’s Canadian operations, is being taxed only in Canada and would generally be taxed in the United States only upon an actual or deemed distribution. The Company expects that BRSCC’s earnings will be indefinitely reinvested for the foreseeable future; therefore, no United States deferred tax asset or liability for the differences between the book basis and the tax basis of BRSCC has been recorded as of September 30, 2021. Under the Tax Cuts and Jobs Act enacted in December 2017, future distributions from foreign subsidiaries will generally be subject to a federal dividends received deduction in the U.S. Should the earnings be remitted as dividends, the Company may be subject to additional foreign withholding and state income taxes. It is not practicable to estimate the amount of any additional taxes which may be payable on the undistributed earnings. As of September 30, 2021, the Company’s goodwill balance on its consolidated balance sheet was $ 1.76 billion , of which there remains an amortizable tax basis of $ 1.1 6 billion for income tax purposes. As of September 30, 2021 , there were no uncertain tax positions which, if recognized, would affect the Company’s effective tax rate. The Company’s accounting policy is to recognize any interest and penalties related to income tax matters in income tax expense in the consolidated statements of operations. The Company has operations in 50 U.S. states and six provinces in Canada. The Company is currently under audit in certain state and local jurisdictions for various years. These audits may involve complex issues, which may require an extended period of time to resolve. Additional taxes are reasonably possible; however, the amounts cannot be estimated at this time or would not be significant. The Company is no longer subject to U.S. federal income tax examinations for any fiscal years ended on or before September 30, 2017. For the majority of states, the Company is also no longer subject to tax examinations for any fiscal years ended on or before September 30, 2017. In Canada, the Company is no longer subject to tax examinations for any fiscal years ended on or before September 30, 2017. For the Canadian provinces, the Company is no longer subject to tax examinations for any fiscal years ended on or before September 30, 2017. |
Geographic Data
Geographic Data | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Geographic Data | 15. Geographic Data The following tables summarize certain geographic information for the periods presented (in millions): September 30, 2021 2020 Long-lived assets: U.S. $ 641.3 $ 708.2 Canada 10.1 9.9 Total long-lived assets $ 651.4 $ 718.1 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Sep. 30, 2021 | |
Allowance For Doubtful Accounts [Abstract] | |
Allowance for Doubtful Accounts | 16. Allowance for Doubtful Accounts The following table summarizes changes in the valuation of the allowance for doubtful accounts (in millions): Year Ended September 30, 2021 2020 2019 Beginning Balance $ 17.9 $ 12.5 $ 16.7 Charged to Operations 9.7 17.6 9.4 Write-offs ( 11.3 ) ( 12.2 ) ( 13.5 ) Ending Balance $ 16.3 $ 17.9 $ 12.5 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 17. Fair Value Measurement As of September 30, 2021, the carrying amount of cash and cash equivalents, accounts receivable, prepaid and other current assets, accounts payable and accrued expenses approximated fair value because of the short-term nature of these instruments. The Company measures its cash equivalents at amortized cost, which approximates fair value based upon quoted market prices (Level 1). As of September 30, 2021 , based upon recent trading prices (Level 2), the fair value of the Company’s $ 300.0 million Senior Notes due in 2026 was $ 312.0 million and the fair value of the $ 350.0 million Senior Notes due in 2029 was $ 349.1 million . As of September 30, 2021 , the fair value of the Company’s term loan and revolving lines of credit approximated the amount outstanding. The Company estimates the fair value of its term loan and revolving lines of credit by discounting the future cash flows of each instrument using estimated market rates of debt instruments with similar maturities and credit profiles (Level 3). |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 18. Employee Benefit Plans The Company maintains defined contribution plans covering all full-time employees of the Company who have 90 days of service and are at least 21 years old. An eligible employee may elect to make a before-tax contribution of between 1 % and 100 % of his or her compensation through payroll deductions, not to exceed the annual limit set by law. The Company currently matches the first 50 % of participant contributions limited to 6 % of a participant’s gross compensation (maximum Company match is 3 %). The combined total expense for this plan and a similar plan for Canadian employees was $ 12.4 million , $ 12.1 million , and $ 11.7 million for the years ended September 30, 2021, 2020, and 2019, respectively. The Company sponsors an external pension fund for certain of its foreign employees who belong to a local union. Pension contributions are made to government-sponsored social security pension plans in accordance with local legal requirements. Annual contributions were $ 0.7 million , $ 1.7 million , and $ 1.0 million for the years ended September 30, 2021, 2020, and 2019, respectively. The Company also participates in multi-employer defined benefit plans for which it is not the sponsor. The aggregated expense for these plans was $ 2.1 million , $ 2.5 million , and $ 2.6 million for the years ended September 30, 2021, 2020, and 2019, respectively. Withdrawal from participation in one of these plans requires the Company to make a lump-sum contribution to the plan, and the Company’s withdrawal liability depends on the extent of the plan’s funding of vested benefits, among other factors. |
Financial Derivatives
Financial Derivatives | 12 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Derivatives | 19. Financial Derivatives The Company uses interest rate derivative instruments to manage the risk related to fluctuating cash flows from interest rate changes by converting a portion of its variable-rate borrowings into fixed-rate borrowings. On September 11, 2019, the Company entered into two interest rate swap agreements to manage the interest rate risk associated with the variable rate on the 2025 Term Loan. Each swap agreement has a notional amount of $ 250.0 million. As part of the 2021 Debt Refinancing, Beacon refinanced the 2025 Term Loan, resulting in the issuance of the 2028 Term Loan; the two interest rate swaps were designed and executed such that they continue to hedge against a total notional amount of $ 500.0 million related to the refinanced 2028 Term Loan. One agreement (the “ 5 -year swap”) will expire on August 30, 2024 and swaps the thirty-day LIBOR with a fixed-rate of 1.49 %. The second agreement (the “ 3 -year swap”) will expire on August 30, 2022 and swaps the thirty-day LIBOR with a fixed-rate of 1.50 %. At the inception of the swap agreements, the Company determined that both swaps qualified for cash flow hedge accounting under ASC 815. Therefore, changes in the fair value of the swaps, net of taxes, will be recognized in other comprehensive income each period, then reclassified into the consolidated statements of operations as a component of interest expense, financing costs, and other in the period in which the hedged transaction affects earnings. The effectiveness of the swaps are assessed qualitatively by the Company during the lives of the hedges by a) comparing the current terms of the hedges with the related hedged debt to assure they continue to coincide and b) evaluating the ability of the counterparty to the hedges to honor their obligations under the hedges. The Company performed a qualitative analysis as of September 30, 2021 and concluded that the swap agreements continue to meet the requirements under ASC 815 to qualify for cash flow hedge accounting. As of September 30, 2021, the fair value of the 3-year and 5-year swaps, net of tax, were $ 2.4 million and $ 5.3 million , respectively, both in favor of the counterparty. These amounts are included in accrued expenses in the accompanying consolidated balance sheets. The Company records any differences paid or received on its interest rate hedges to interest expense, financing costs and other. The following table summarizes the combined fair values, net of tax, of the interest rate derivative instruments (in millions): Assets/(Liabilities) as of September 30, Instrument Fair Value Hierarchy 2021 2020 Designated interest rate swaps 1 Level 2 $ ( 7.7 ) $ ( 15.0 ) _______________________ 1. Assets are included in the consolidated balance sheets in prepaid expenses and other current assets, while liabilities are included in accrued expenses. The fair value of the interest rate swaps is determined through the use of a pricing model, which utilizes verifiable inputs such as market interest rates that are observable at commonly quoted intervals (generally referred to as the “LIBOR Curve”) for the full terms of the hedge agreements. These values reflect a Level 2 measurement under the applicable fair value hierarchy. The following table summarizes the amounts of gain (loss) on the interest rate derivative instruments recognized in other comprehensive income (in millions): Year Ended September 30, Instrument 2021 2020 2019 Designated interest rate swaps $ 7.3 $ ( 13.4 ) $ ( 1.6 ) |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Sep. 30, 2021 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | 2 0. Quarterly Financial Data The following table sets forth certain unaudited quarterly data for 2021 and 2020 which, in the opinion of management, reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of this data. Results of any one or more quarters are not necessarily indicative of results for an entire fiscal year or of continuing trends (in millions, except per share amounts): 2021 2020 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Net sales $ 1,875.4 $ 1,872.1 $ 1,318.0 $ 1,576.5 $ 1,755.0 $ 1,549.3 $ 1,197.1 $ 1,415.3 % of fiscal year’s net sales 28.2 % 28.2 % 19.8 % 23.7 % 29.7 % 26.2 % 20.2 % 23.9 % Gross profit $ 507.8 $ 517.4 $ 332.8 $ 399.7 $ 441.3 $ 368.7 $ 270.4 $ 340.1 % of fiscal year’s gross profit 28.9 % 29.4 % 18.9 % 22.7 % 31.1 % 26.0 % 19.0 % 23.9 % Net income (loss) from continuing operations $ 104.5 $ 79.8 $ ( 10.5 ) $ 47.4 $ 68.2 $ ( 4.1 ) $ ( 121.4 ) $ ( 24.0 ) Net income (loss) $ 104.8 $ 76.5 $ ( 6.3 ) $ ( 220.5 ) $ 71.9 $ ( 6.8 ) $ ( 122.6 ) $ ( 23.4 ) Net income (loss) attributable to common stockholders $ 98.8 $ 70.5 $ ( 12.3 ) $ ( 226.5 ) $ 65.9 $ ( 12.8 ) $ ( 128.6 ) $ ( 29.4 ) Net income (loss) from continuing operations per share - basic $ 1.23 $ 0.93 $ ( 0.24 ) $ 0.60 $ 0.79 $ ( 0.14 ) $ ( 1.85 ) $ ( 0.44 ) Net income (loss) per share - basic $ 1.24 $ 0.89 $ ( 0.18 ) $ ( 3.27 ) $ 0.84 $ ( 0.18 ) $ ( 1.87 ) $ ( 0.43 ) Net income (loss) from continuing operations per share - diluted $ 1.21 $ 0.91 $ ( 0.24 ) $ 0.59 $ 0.78 $ ( 0.14 ) $ ( 1.85 ) $ ( 0.44 ) Net income (loss) per share - diluted $ 1.22 $ 0.87 $ ( 0.18 ) $ ( 3.24 ) $ 0.83 $ ( 0.18 ) $ ( 1.87 ) $ ( 0.43 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events On November 1, 2021, the Company announced the acquisition of Midway Sales & Distributing, Inc., a leading Midwest distributor of residential and commercial exterior building and roofing supplies with 10 branches across Kansas, Missouri and Nebraska and annual sales of approximately $ 130 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company transactions have been eliminated. Beginning with the condensed consolidated financial statements for the three months ended December 31, 2020, the Company has reflected Interior Products as discontinued operations for all periods presented. Unless otherwise noted, amounts and disclosures throughout these Notes to Consolidated Financial Statements relate to the Company's continuing operations. Certain prior period amounts have been reclassified to conform to current period presentation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Significant items subject to such estimates include inventories, purchase price allocations, recoverability of goodwill and intangibles, and income taxes. Assumptions made in the development of these estimates contemplate the impact of the novel coronavirus (“COVID‑19”) on the economy and the Company’s anticipated results; however, actual amounts could differ materially from these estimates. |
Fiscal Year | Fiscal Year Beacon uses a fiscal reporting calendar which begins on October 1 and ends on September 30. The fiscal years presented are the years ended September 30, 2021 (“2021”), September 30, 2020 (“2020”), and September 30, 2019 (“2019”). Each of the Company’s fiscal quarters ends on the last day of the calendar month. As announced on August 17, 2021, the Company will change its fiscal year end from September 30 to December 31, which will be effective beginning January 1, 2022, for the year ending December 31, 2022. The Company plans to file a transition report on Form 10‑QT for the transition period from October 1, 2021, to December 31, 2021. This change better aligns the Company’s financial reporting calendar with many of its industry peers and provides internal benefits by shifting the timing of the budgeting, physical inventory, and performance review cycles away from the Company’s busiest time of year. |
Segment Information | Segment Information Operating segments are defined as components of a business that can earn revenue and incur expenses for which discrete financial information is evaluated on a regular basis by the chief operating decision maker (“CODM”) in order to decide how to allocate resources and assess performance. The Company’s CODM, the Chief Executive Officer, reviews consolidated results of operations to make decisions, therefore the Company views its operations and manages its business as one operating segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents also include unsettled credit card transactions. Cash equivalents are composed of money market funds which invest primarily in commercial paper or bonds with a rating of A-1 or better, and bank certificates of deposit. |
Accounts Receivable | Accounts Receivable Accounts receivable are derived from unpaid invoiced amounts and are recorded at their net realizable value. The allowance for doubtful accounts is calculated based on actual historical write-offs and current economic factors and represents the Company’s best estimate of its credit exposure. Each month the Company reviews its receivables on a customer-by-customer basis and any balances that are deemed uncollectible are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s accounts receivable are primarily from customers in the building industry located in the United States and Canada, and no single customer represented at least 10% of the Company’s revenue during the year ended September 30, 2021 or accounts receivable as of September 30, 2021 . |
Concentrations of Risk | Concentrations of Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents and accounts receivable. The Company maintains the majority of its cash and cash equivalents with one financial institution, which management believes to be financially sound and with minimal credit risk. The Company’s deposits typically exceed amounts guaranteed by the Federal Deposit Insurance Corporation. |
Inventories | Inventories, consisting substantially of finished goods, are valued at the lower of cost or market (net realizable value). Cost is determined using the moving weighted-average cost method. The Company’s arrangements with vendors typically provide for rebates after it makes a special purchase and/or monthly, quarterly and/or annual rebates of a specified amount of consideration payable when a number of measures have been achieved. Annual rebates are generally related to a specified cumulative level of purchases on a calendar-year basis. The Company accounts for such rebates as a reduction of the inventory value until the product is sold, at which time such rebates reduce cost of products sold in the consolidated statements of operations. Throughout the year, the Company estimates the amount of the periodic rebates based upon the expected level of purchases. The Company continually revises these estimates to reflect actual rebates earned based on actual purchase levels. Amounts due from vendors under these arrangements are included in “prepaid expenses and other current assets” in the accompanying consolidated balance sheets. |
Property and Equipment | Property and Equipment Property and equipment acquired in connection with acquisitions are recorded at fair value as of the date of the acquisition and depreciated utilizing the straight-line method over the estimated remaining lives. All other additions are recorded at cost, and depreciation is computed using the straight-line method. The Company reviews the estimated useful lives of its fixed assets on an ongoing basis and the following table summarizes the estimates currently used: Asset Class Estimated Useful Life Buildings and improvements 40 years Equipment 3 to 7 years Furniture and fixtures 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Goodwill and Indefinite-Lived Intangibles |
Goodwill and Intangibles | On an annual basis and at interim periods when circumstances require, the Company tests the recoverability of its goodwill and indefinite-lived intangible assets and reviews for indicators of impairment. Examples of such indicators include a significant change in the business climate, unexpected competition, loss of key personnel or a decline in the Company’s market capitalization below the Company’s net book value. The Company performs impairment assessments at the reporting unit level, which is defined as an operating segment or one level below an operating segment, also known as a component. The Company currently has three components which it evaluates for aggregation by examining the distribution methods, sales mix, and operating results of each component to determine if these characteristics will be sustained over a long-term basis. For purposes of this evaluation, the Company expects its components to exhibit similar economic characteristics 3 - 5 years after events such as an acquisition within the Company’s core roofing business or management/business restructuring. Components that exhibit similar economic characteristics are subsequently aggregated into a single reporting unit. Based on the Company’s most recent impairment assessment performed as of August 31, 2021, it was determined that all of the Company’s components exhibited similar economic characteristics, and therefore should be aggregated into a single reporting unit (collectively, the “Reporting Unit”). To test for the recoverability of goodwill and indefinite-lived intangible assets, the Company first performs a qualitative assessment based on economic, industry and company-specific factors for all or selected reporting units to determine whether the existence of events and circumstances indicates that it is more likely than not that the goodwill or indefinite-lived intangible asset is impaired. Based on the results of the qualitative assessment, two additional steps in the impairment assessment may be required. The first step would require a comparison of each reporting unit’s fair value to the respective carrying value. If the carrying value exceeds the fair value, a second step is performed to measure the amount of impairment loss on a relative fair value basis, if any. Based on the Company’s most recent qualitative impairment assessment performed as of August 31, 2021, the Company concluded that there were no indicators of impairment, and that therefore it was more likely than not that the fair value of the goodwill and indefinite-lived intangible assets exceeded their net carrying amount, and therefore the quantitative two-step impairment test was not required. The Company amortizes certain identifiable intangible assets that have finite lives, currently consisting of non-compete agreements, customer relationships and trade names. Non-compete agreements are amortized on a straight-line basis over the terms of the associated contractual agreements; customer relationship assets are amortized on an accelerated basis based on the expected cash flows generated by the existing customers; and trade names are amortized on an accelerated basis over a five or ten year period . Amortizable intangible assets are tested for impairment, when deemed necessary, based on undiscounted cash flows and, if impaired, are written down to fair value based on either discounted cash flows or appraised values. In connection with certain financing arrangements, the Company has debt issuance costs that are amortized over the lives of the associated financings. |
Evaluation of Long-Lived Assets | Evaluation of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is measured by comparing the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. |
Fair Value Measurement | Fair Value Measurement The Company applies fair value accounting for all financial assets and liabilities that are reported at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a defined three-tier hierarchy to classify and disclose the fair value of assets and liabilities on both the date of their initial measurement as well as all subsequent periods. The hierarchy prioritizes the inputs used to measure fair value by the lowest level of input that is available and significant to the fair value measurement. The three levels are described as follows: Level 1 : Observable inputs. Quoted prices in active markets for identical assets and liabilities; Level 2 : Observable inputs other than the quoted price. Includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets and amounts derived from valuation models where all significant inputs are observable in active markets; and Level 3 : Unobservable inputs. Includes amounts derived from valuation models where one or more significant inputs are unobservable and require the Company to develop relevant assumptions. The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification as of each reporting period. |
Financial Derivatives | Financial Derivatives The Company has entered into interest rate swaps to minimize the risks and costs associated with financing activities, as well as to maintain an appropriate mix of fixed-rate and floating-rate debt. The swap agreements are contracts to exchange variable-rate for fixed-interest rate payments over the life of the agreements. The Company's derivative instruments are designated as cash flow hedges, for which the Company records changes in their fair value, net of tax, in other comprehensive income. |
Net Sales | Net Sales The Company records net sales when performance obligations with the customer are satisfied. A performance obligation is a promise to transfer a distinct good to the customer and is the unit of account. The transaction price is allocated to each distinct performance obligation and recognized as net sales when, or as, the performance obligation is satisfied. All contracts have a single performance obligation as the promise to transfer the individual good is not separately identifiable from other promises and is, therefore, not distinct. Performance obligations are satisfied at a point in time and net sales are recognized when the customer accepts the delivery of a product or takes possession of a product with rights and rewards of ownership. For goods shipped by third party carriers, the Company recognizes revenue upon shipment since the terms are generally FOB shipping point at which time control passes to the customer. The Company also arranges for certain products to be shipped directly from the manufacturer to the customer. The Company recognizes the gross revenue for these sales upon shipment as the terms are FOB shipping point at which time control passes to the customer. The Company enters into agreements with customers to offer rebates, generally based on achievement of specified sales levels and various marketing allowances that are common industry practice. Reductions to net sales for customer programs and incentive offerings, including promotions and other volume-based incentives, are estimated using the most likely amount method and recorded in the period in which the sale occurs. Provisions for early payment discounts are accrued in the same period in which the sale occurs. The Company does not have any material payment terms as payment is received shortly after the transfer of control of the products to the customer. Commissions to internal sales teams are paid to obtain contracts. As these contracts are less than one year, these costs are expensed as incurred. The Company includes shipping and handling costs billed to customers in net sales. Related costs are accounted for as fulfillment activities and are recognized as cost of products sold when control of the products transfers to the customer. |
Leases | Leases The Company mostly operates in leased facilities, which are accounted for as operating leases. The leases typically provide for a base rent plus real estate taxes and insurance. Certain of the leases provide for escalating rents over the lives of the leases, and rent expense is recognized over the terms of those leases on a straight-line basis. The real estate leases expire between 2021 and 2038 . In addition, the Company leases equipment such as trucks and forklifts. Equipment leases are accounted for as either operating or finance leases. The equipment leases expire between 2021 and 2028 . The Company determines if an arrangement is a lease at inception. Operating and finance lease assets and liabilities are included within the consolidated balance sheets, with finance lease assets included in property and equipment, net. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rates implicit in most of the leases are not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. Lease assets include any prepaid lease payments and lease incentives. The Company’s lease terms include periods under options to extend or terminate the lease when it is reasonably certain that those options will be exercised. The Company generally uses the base, non-cancelable lease term when determining the lease assets and liabilities. Operating lease expense is recognized on a straight-line basis over the lease term. For finance leases, the lease asset is depreciated over the lease term and interest expense is recorded using the effective interest method. The Company’s lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company has elected to combine fixed payments for non-lease components with lease payments and account for them together as a single lease component, which increases the lease assets and liabilities. Payments under the Company’s lease agreements are primarily fixed. However, certain lease agreements contain variable payments, which are expensed as incurred and are not included in the operating lease assets and liabilities. These amounts include payments affected by the Consumer Price Index and reimbursements to landlords for items such as property insurance and common area costs. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. |
Stock-Based Compensation | Stock-Based Compensation The Company applies the fair value method to recognize compensation expense for stock-based awards. Using this method, the estimated grant-date fair value of the award is recognized on a straight-line basis over the requisite service period based on the portion of the award that is expected to vest. The Company estimates forfeitures at the time of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For awards with a performance-based vesting condition, the Company accrues stock-based compensation expense if it is probable that the performance condition will be achieved. Stock-based compensation expense for restricted stock units is measured based on the fair value of the Company’s common stock on the grant date. The Company utilizes the Black-Scholes option pricing model to estimate the grant-date fair value of option awards. The exercise price of option awards is set to equal the estimated fair value of the common stock at the date of the grant. The following weighted-average assumptions are also used to calculate the estimated fair value of option awards: Expected volatility : The expected volatility of the Company’s shares is estimated using the historical stock price volatility over the most recent period commensurate with the estimated expected term of the awards. Expected term : For employee stock option awards, the Company determines the weighted average expected term equal to the weighted period between the vesting period and the contract life of all outstanding options. Dividend yield : The Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future and, accordingly, uses an expected dividend yield of zero . Risk-free interest rate : The Company bases the risk-free interest rate on the implied yield available on a U.S. Treasury note with a term equal to the estimated expected term of the awards. |
Foreign Currency Translation | Foreign Currency Translation The Company’s operations located outside of the United States where the local currency is the functional currency are translated into U.S. dollars using the current rate method. Results of operations are translated at the average rate of exchange for the period. Assets and liabilities are translated at the closing rates on the period end date. Gains and losses on translation of these accounts are accumulated and reported as a separate component of equity and other comprehensive income (loss). Gains and losses on foreign currency transactions are recognized in the consolidated statements of operations as a component of interest expense, financing costs, and other. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method, which requires it to recognize a current tax liability or asset for current taxes payable or refundable and a deferred tax liability or asset for the estimated future tax effects of temporary differences between the financial statement and tax reporting bases of assets and liabilities to the extent that they are realizable. Deferred tax expense (benefit) results from the net change in deferred tax assets and liabilities during the year. FASB ASC Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Based on this guidance, the Company analyzes its filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. Tax benefits from uncertain tax positions are recognized if it is more likely than not that the position is sustainable based solely on its technical merits. |
Net Income (Loss) per Share | Net Income (Loss) per Share Basic net income (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents or the conversion of Preferred Stock. Common share equivalents consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock unit awards. Diluted net income (loss) per common share is calculated by dividing net income (loss) attributable to common stockholders by the fully diluted weighted-average number of common shares outstanding during the period. Holders of Preferred Stock participate in dividends on an as-converted basis when declared on common shares. As a result, Preferred Stock is classified as a participating security and thereby requires the allocation of income that would have otherwise been available to common stockholders when calculating net income (loss) per share. Diluted net income (loss) per share is calculated by utilizing the most dilutive result of the if-converted and two-class methods. In both methods, net income (loss) attributable to common stockholders and the weighted-average common shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules. |
Recent Accounting Pronouncements - Adopted and Not Yet Adopted | Recent Accounting Pronouncements—Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes – Simplifying the Accounting for Income Taxes.” This guidance is intended to simplify the accounting for income taxes by removing certain exceptions, clarifying existing guidance and improving consistent application of the guidance. The Company early adopted this standard for the year ended September 30, 2021. The adoption of the standard did not have a material impact on the Company’s financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13 , “ Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments .” This guidance is intended to introduce a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. This new standard became effective for the Company on October 1, 2020 . The adoption of the new standard was done using the modified-retrospective approach, through a cumulative-effect adjustment to retained earnings as of October 1, 2020. The most significant effect of the standard was an increase to the Company’s accounts receivable reserve and a corresponding retained earnings adjustment of approximately $ 4.3 million on October 1, 2020. In January 2017, the FASB issued ASU 2017-04 , “ Simplifying the Accounting for Goodwill Impairment.” This guidance is intended to introduce a simplified approach to measurement of goodwill impairment, eliminating the need for a hypothetical purchase price allocation and instead measuring impairment by the amount a reporting unit’s carrying value exceeds its fair value. This new standard became effective for the Company on October 1, 2020 . The adoption of this new guidance did not have a material impact on the Company’s financial statements and related disclosures. Recent Accounting Pronouncements—Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, “ Business Combinations – Accounting for Contract Assets and Contact Liabilities from Contracts with Customers .” The guidance is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. The guidance requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with Topic 606 as if they had originated the contracts, as opposed to at fair value on the acquisition date. The standard will be effective for business combinations that occur after January 1, 2023. Early adoption is permitted. The Company is currently evaluating the impact that this guidance may have on its financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting .” The guidance provides optional practical expedients to ease the potential burden in accounting for contract modifications and hedge accounting related to reference rate reform. In January 2021, the FASB issued ASU 2021-01, “ Reference Rate Reform (Topic 848), Scope ,” to clarify the scope of the guidance and reduce potential diversity in practice. The standard is effective as of March 12, 2020 through December 31, 2022. However, the standard is not applicable to contract modifications made, and hedging relationships entered into or evaluated after, December 31, 2022. The Company will evaluate and disclose the impact of this guidance in the period of election, as well as the nature and reason for doing so. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Property and Equipment Estimated Useful Life | All other additions are recorded at cost, and depreciation is computed using the straight-line method. The Company reviews the estimated useful lives of its fixed assets on an ongoing basis and the following table summarizes the estimates currently used: Asset Class Estimated Useful Life Buildings and improvements 40 years Equipment 3 to 7 years Furniture and fixtures 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Goodwill and Indefinite-Lived Intangibles |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Reconciliation of Major Line Items Constituting Pretax Income (Loss) from Discontinued Operations to Net Income (Loss) from Discontinued Operations | The following table reconciles major line items constituting pretax income (loss) from discontinued operations to net income (loss) from discontinued operations as presented in the consolidated statements of operations (in millions): Year Ended September 30, 2021 2020 2019 Net sales $ 357.9 $ 1,027.2 $ 1,109.1 Cost of products sold ( 264.2 ) ( 748.5 ) ( 800.1 ) Selling, general and administrative ( 79.1 ) ( 207.5 ) ( 218.2 ) Depreciation and amortization ( 13.0 ) ( 71.1 ) ( 74.4 ) Other income (loss) 0.1 0.5 ( 5.1 ) Loss on sale ( 360.6 ) — — Pretax income (loss) from discontinued operations ( 358.9 ) 0.6 11.3 Provision for (benefit from) income taxes ( 92.2 ) 0.2 3.0 Net income (loss) from discontinued operations $ ( 266.7 ) $ 0.4 $ 8.3 |
Schedule of Reconciliation of Carrying Amounts of Major Classes of Assets and Liabilities of Discontinued Operations to Total Assets | The following table reconciles the carrying amounts of major classes of assets and liabilities of discontinued operations to total assets and liabilities of discontinued operations that were classified as held for sale in the consolidated balance sheets (in millions): September 30, 2020 1 Carrying amounts of major classes of assets held for sale: Accounts receivable, net $ 144.1 Inventories, net 73.2 Prepaid expenses and other current assets 26.5 Total current assets 243.8 Property and equipment, net 35.9 Goodwill 734.3 Intangibles, net 283.2 Operating lease assets 67.1 Total non-current assets 1,120.5 Total assets held for sale $ 1,364.3 Carrying amounts of major classes of liabilities held for sale: Accounts payable $ 68.8 Accrued expenses 54.1 Current operating lease liabilities 16.5 Total current liabilities 139.4 Non-current operating lease liabilities 49.9 Other long-term liabilities 3.5 Total non-current liabilities 53.4 Total liabilities held for sale $ 192.8 ___________________________ 1. Amounts reflect balances that were recast as a result of the Interior Products divestiture. There were no assets or liabilities held for sale as of September 30, 2021. |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Net Sales by Product Line and Geography | The following table presents the Company’s net sales by line of business and geography for each period presented (in millions): U.S. Canada Total Year Ended September 30, 2021 Residential roofing products $ 3,443.4 $ 72.8 $ 3,516.2 Non-residential roofing products 1,551.7 137.1 1,688.8 Complementary building products 1,426.5 10.5 1,437.0 Total net sales $ 6,421.6 $ 220.4 $ 6,642.0 Year Ended September 30, 2020 Residential roofing products $ 3,023.0 $ 56.4 $ 3,079.4 Non-residential roofing products 1,504.6 112.2 1,616.8 Complementary building products 1,211.5 9.0 1,220.5 Total net sales $ 5,739.1 $ 177.6 $ 5,916.7 Year Ended September 30, 2019 Residential roofing products $ 2,779.7 $ 56.4 $ 2,836.1 Non-residential roofing products 1,437.1 122.4 1,559.5 Complementary building products 1,592.6 7.9 1,600.5 Total net sales $ 5,809.4 $ 186.7 $ 5,996.1 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Components and Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the components and calculations of basic and diluted net income (loss) per share for each period presented (in millions, except per share amounts; certain amounts may not recalculate due to rounding): Year Ended September 30, 2021 2020 2019 Numerator: Net income (loss) from continuing operations $ 221.2 $ ( 81.3 ) $ ( 18.9 ) Dividends on Preferred Stock ( 24.0 ) ( 24.0 ) ( 24.0 ) Net income (loss) from continuing operations attributable to common stockholders - Basic 197.2 ( 105.3 ) ( 42.9 ) Add back: dividends on Preferred Stock 1 24.0 — — Net income (loss) from continuing operations attributable to common stockholders - Diluted 221.2 ( 105.3 ) ( 42.9 ) Net income (loss) from discontinued operations attributable to common stockholders - Basic and Diluted ( 266.7 ) 0.4 8.3 Net income (loss) attributable to common stockholders - Basic $ ( 69.5 ) $ ( 104.9 ) $ ( 34.6 ) Net income (loss) attributable to common stockholders - Diluted $ ( 45.5 ) $ ( 104.9 ) $ ( 34.6 ) Denominator: Weighted-average common shares outstanding - basic 69.7 68.8 68.4 Effect of common share equivalents 1.1 — — Effect of convertible Preferred Stock 1 9.7 — — Weighted-average common shares outstanding - diluted 80.5 68.8 68.4 Net income (loss) per share: Basic - Continuing operations $ 2.83 $ ( 1.53 ) $ ( 0.63 ) Basic - Discontinued operations ( 3.83 ) 0.01 0.12 Basic net income (loss) per share $ ( 1.00 ) $ ( 1.52 ) $ ( 0.51 ) Diluted - Continuing operations $ 2.75 $ ( 1.53 ) $ ( 0.63 ) Diluted - Discontinued operations ( 3.32 ) 0.01 0.12 Diluted net income (loss) per share $ ( 0.57 ) $ ( 1.52 ) $ ( 0.51 ) ____________________________ 1. The hypothetical conversion of the Preferred Stock became dilutive for the year ended September 30, 2021, primarily stemming from the significant income from continuing operations and offsetting loss from discontinued operations in 2021, and their combined effect on the Company’s calculation of diluted net income (loss) per share. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table includes the number of shares that may be dilutive common shares in the future. These shares were not included in the computation of diluted net income (loss) per share because the effect was either anti-dilutive or the requisite performance conditions were not met (in millions): Year Ended September 30, 2021 2020 2019 Stock options 0.5 2.0 1.3 Restricted stock units — 0.3 0.1 Preferred Stock — 9.7 9.7 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Values of Options, Black-Scholes Option-Pricing Model, Weighted-Average Assumptions | The fair values of the options granted for the year ended September 30, 2021 were estimated on the dates of grants using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended September 30, 2021 2020 2019 Risk-free interest rate 0.44 % 1.61 % 2.86 % Expected volatility 48.15 % 34.26 % 29.68 % Expected life (in years) 5.36 5.26 5.22 Dividend yield — — — |
Stock Options Outstanding and Activity During the Period | The following table summarizes all stock option activity for the periods presented (in millions, except per share amounts and time periods): Options Weighted- Weighted- Aggregate 1 Balance as of September 30, 2020 2.5 $ 33.09 5.9 $ 6.9 Granted 0.3 35.78 Exercised ( 0.9 ) 29.88 Canceled/Forfeited ( 0.1 ) 40.32 Expired ( 0.0 ) 15.47 Balance as of September 30, 2021 1.8 $ 34.88 5.8 $ 24.9 Vested and expected to vest after September 30, 2021 1.8 $ 34.89 5.8 $ 24.5 Exercisable as of September 30, 2021 1.1 $ 36.35 4.5 $ 14.5 ________________________________________ 1. Aggregate intrinsic value represents the difference between the closing fair value of the underlying common stock and the exercise price of outstanding, in-the-money options on the date of measurement. |
Stock Option Grants, Vesting, and Exercises | The following table summarizes additional information on stock options for the periods presented (in millions, except per share amounts): Year Ended September 30, 2021 2020 2019 Weighted-average fair value of stock options granted $ 15.62 $ 10.35 $ 8.91 Total grant date fair value of stock options vested $ 5.6 $ 4.3 $ 3.9 Total intrinsic value of stock options exercised $ 15.7 $ 2.1 $ 2.8 |
Restricted Shares and Units Outstanding and Activity During the Period | The following table summarizes all restricted stock unit activity for the periods presented (in millions, except per share amounts): RSUs Weighted-Average Grant Date Fair Value Balance as of September 30, 2020 1.2 $ 33.55 Granted 0.4 38.18 Released ( 0.4 ) 41.50 Canceled/Forfeited ( 0.2 ) 29.87 Balance as of September 30, 2021 1.0 $ 33.76 Vested and expected to vest after September 30, 2021 1 1.1 $ 33.91 _________________________________________ 1. As of September 30, 2021, outstanding PSUs were expected to vest at greater than 100 % of their original grant amount. |
Schedule Of Restricted Stock Units Additional Information | The following table summarizes additional information on RSUs for the period presented (in millions, except per share amounts): Year Ended September 30, 2021 2020 2019 Weighted-average fair value of RSUs granted $ 38.18 $ 31.81 $ 28.02 Total grant date fair value of RSUs vested $ 16.5 $ 14.4 $ 16.1 Total intrinsic value of RSUs released $ 15.2 $ 9.8 $ 11.5 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Prepaid Expenses And Other Current Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | The following table summarizes the significant components of prepaid expenses and other current assets (in millions): September 30, 2021 2020 Vendor rebates $ 289.5 $ 306.2 Other 56.4 45.6 Total prepaid expenses and other current assets $ 345.9 $ 351.8 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | The following table provides a detailed breakout of property and equipment, by type (in millions): September 30, 2021 2020 Land and buildings $ 85.9 $ 76.5 Equipment 417.3 397.3 Furniture and fixtures 58.9 42.1 Finance lease assets 29.0 9.7 Total property and equipment 591.1 525.6 Accumulated depreciation ( 354.5 ) ( 317.8 ) Total property and equipment, net $ 236.6 $ 207.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in goodwill | The following table sets forth the change in the carrying amount of goodwill during the years ended September 30, 2021 and 2020, respectively (in millions): Balance as of September 30, 2019 $ 1,756.3 Translation and other adjustments ( 0.2 ) Balance as of September 30, 2020 $ 1,756.1 Translation and other adjustments 4.8 Balance as of September 30, 2021 $ 1,760.9 |
Summary of Intangible Assets | The following table summarizes intangible assets by category (in millions, except time period amounts): September 30, Weighted- 1 2021 2020 (Years) Amortizable intangible assets: Non-compete agreements $ 0.2 $ 0.2 0.7 Customer relationships 1,076.2 1,085.5 15.4 Beneficial lease arrangements — 3.7 — Total amortizable intangible assets 1,076.4 1,089.4 Accumulated amortization ( 671.4 ) ( 581.2 ) Total amortizable intangible assets, net $ 405.0 $ 508.2 Indefinite-lived trademarks 9.8 9.8 Total intangibles, net $ 414.8 $ 518.0 ___________________________________________ 1. As of September 30, 2021 . |
Summary of Estimated Future Amortization | The following table summarizes the estimated future amortization expense for intangible assets (in millions): Year Ending September 30, 2022 $ 82.1 2023 66.2 2024 53.1 2025 42.8 2026 34.5 Thereafter 126.3 Total future amortization expense $ 405.0 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt Presented Net of Unamortized debt Issuance Costs and Other Financing Arrangements | The following table summarizes all outstanding debt (presented net of unamortized debt issuance costs) and other financing arrangements from the respective periods presented (in millions): September 30, 2021 2020 Revolving Lines of Credit 2023 ABL: 2023 U.S. Revolver 1 $ — $ 251.1 2026 ABL: 2026 U.S. Revolver — — 2026 Canada Revolver — — Current portion — — Borrowings under revolving lines of credit, net $ — $ 251.1 Long-term Debt, net Term Loan: 2025 Term Loan 2 $ — $ 922.3 2028 Term Loan 3 981.7 — Current portion ( 10.0 ) ( 9.7 ) Long-term borrowings under term loan 971.7 912.6 Senior Notes: 2025 Senior Notes 4 — 1,285.7 2026 Senior Notes 5 296.6 295.9 2029 Senior Notes 6 346.2 — Current portion — — Long-term borrowings under senior notes 642.8 1,581.6 Long-term debt, net $ 1,614.5 $ 2,494.2 Equipment Financing Facilities, net Equipment financing facilities 7 $ — $ 2.6 Current portion — ( 2.6 ) Long-term obligations under equipment financing, net $ — $ — ___________________________________________________ 1. Effective rate on borrowings of 1.89 % as of September 30, 2020 . 2. Interest rate of 2.41 % as of September 30, 2020 . 3. Interest rate of 2.33 % as of September 30, 2021 . 4. Interest rate of 4.88 as of September 30, 2020 . 5. Interest rate of 4.50 % for all periods presented. 6. Interest rate of 4.125 % as of September 30, 2021 . 7. Fixed interest rates ranging from 2.33 % to 2.89 % as of September 30, 2020 . |
Schedule of Maturities of Long-term Debt | The following table presents annual principal payments for all outstanding financing arrangements for each of the next five years and thereafter (in millions): Year Ending September 30, 2026 ABL 2028 Term Loan Senior Notes 1 Total 2022 $ — $ 10.0 $ — $ 10.0 2023 — 10.0 — 10.0 2024 — 10.0 — 10.0 2025 — 10.0 — 10.0 2026 — 10.0 — 10.0 Thereafter — 947.5 650.0 1,597.5 Total debt — 997.5 650.0 1,647.5 Unamortized debt issuance costs — ( 15.8 ) ( 7.2 ) ( 23.0 ) Total debt, net $ — $ 981.7 $ 642.8 $ 1,624.5 __________________________________ 1. Represent principal amounts for 2026 Senior Notes and 2029 Senior Notes. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Components of Operating Lease Costs Recognized in Consolidated Statements of Operations Amounts Include Both Continuing and Discontinued Operations | The following table summarizes components of lease costs recognized in the consolidated statements of operations (in millions; amounts include both continuing and discontinued operations): Year Ended September 30, 2021 2020 Operating lease costs $ 106.1 $ 104.5 Finance lease costs: Amortization of right-of-use assets 5.2 4.4 Interest on lease obligations 0.5 0.1 Variable lease costs 9.2 8.6 Total lease costs $ 121.0 $ 117.6 |
Summary of Supplemental Cash Flow Information Related to Leases | The following table presents supplemental cash flow information related to the Company's leases (in millions): Year Ended September 30, 2021 2020 Cash paid for amounts included in measurement of lease obligations: Operating cash flows from operating leases $ 106.3 $ 118.7 Operating cash flows from finance leases $ 0.5 $ 0.2 Financing cash flows from finance leases $ 4.0 $ 4.3 Right-of-use assets obtained in exchange for new finance lease liabilities $ 29.1 $ 6.2 Right-of-use assets obtained in exchange for new operating lease liabilities $ 55.4 $ 26.0 |
Summary of Future Lease Payments | The following table summarizes future lease payments as of September 30, 2021 (in millions): Year Ending September 30, Operating Leases Finance Leases 2022 $ 100.9 $ 5.8 2023 87.8 5.8 2024 74.3 5.8 2025 52.3 5.8 2026 39.0 4.8 Thereafter 88.5 2.3 Total future lease payments 442.8 30.3 Imputed interest ( 43.0 ) ( 2.4 ) Total lease liabilities $ 399.8 $ 27.9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the components of and changes in accumulated other comprehensive loss (in millions): Foreign Derivative Currency Financial AOCI Balance as of September 30, 2018 $ ( 17.3 ) $ — $ ( 17.3 ) Other comprehensive income (loss) before reclassifications ( 1.7 ) ( 1.6 ) ( 3.3 ) Reclassifications out of other comprehensive income (loss) — — — Balance as of September 30, 2019 $ ( 19.0 ) $ ( 1.6 ) $ ( 20.6 ) Other comprehensive income (loss) before reclassifications ( 0.7 ) ( 13.4 ) ( 14.1 ) Reclassifications out of other comprehensive income (loss) — — — Balance as of September 30, 2020 $ ( 19.7 ) $ ( 15.0 ) $ ( 34.7 ) Other comprehensive income (loss) before reclassifications 4.0 7.3 11.3 Reclassifications out of other comprehensive income (loss) — — — Balance as of September 30, 2021 $ ( 15.7 ) $ ( 7.7 ) $ ( 23.4 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Income Tax Provision (Benefit) | The following table summarizes the components of the income tax provision (benefit) (in millions): Year Ended September 30, 2021 2020 2019 Current: Federal 1 $ 28.4 $ ( 1.5 ) $ ( 2.5 ) Foreign 3.6 1.4 0.6 State 13.3 0.5 1.0 Total current taxes 45.3 0.4 ( 0.9 ) Deferred: Federal 27.6 ( 21.0 ) ( 1.4 ) Foreign 0.1 0.2 — State 4.3 ( 6.6 ) ( 0.9 ) Total deferred taxes 32.0 ( 27.4 ) ( 2.3 ) Provision for (benefit from) income taxes $ 77.3 $ ( 27.0 ) $ ( 3.2 ) |
Principal Reason for the Difference Between Effective Income Tax Rate and the Statutory Federal Income | The following table is a reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the periods presented: Year Ended September 30, 2021 2020 2019 U.S. federal income taxes at statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.6 % 4.1 % 1.1 % Share-based payments ( 0.3 %) ( 0.5 %) ( 1.9 %) Deferred tax asset/liability remeasurement 1 0.0 % 0.6 % 0.0 % Repatriation transition tax 1 0.0 % 0.0 % 2.1 % Non-deductible meals and entertainment 0.2 % ( 0.8 %) ( 6.4 %) Other 0.4 % 0.5 % ( 1.4 %) Effective tax rate 25.9 % 24.9 % 14.5 % _____________________________ 1. 2020 includes the impact of carryback of NOLs to 2016 tax year and realization of 35 % statutory rate. |
Components of the Company's Deferred Taxes | The following table presents temporary differences that give rise to deferred tax assets and liabilities for the periods presented (in millions): September 30, 2021 2020 Deferred tax assets: Deferred compensation $ 9.0 $ 10.4 Allowance for doubtful accounts 5.6 5.2 Accrued vacation and other 15.1 9.0 Inventory valuation 15.0 12.7 Tax loss carryforwards 1 0.8 3.1 Unrealized loss on financial derivatives 2.4 4.8 Lease liability 100.7 94.8 Excess tax over book depreciation and amortization 15.4 — Total deferred tax assets 164.0 140.0 Deferred tax liabilities: Excess tax over book depreciation and amortization — ( 115.3 ) Lease right-of-use asset ( 100.2 ) ( 96.5 ) Total deferred tax liabilities ( 100.2 ) ( 211.8 ) Net deferred income tax assets (liabilities) $ 63.8 $ ( 71.8 ) _____________________________ 1. Composed of net operating loss, foreign tax, and alternative minimum tax carryforwards. |
Geographic Data (Tables)
Geographic Data (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Geographic Information | The following tables summarize certain geographic information for the periods presented (in millions): September 30, 2021 2020 Long-lived assets: U.S. $ 641.3 $ 708.2 Canada 10.1 9.9 Total long-lived assets $ 651.4 $ 718.1 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Allowance For Doubtful Accounts [Abstract] | |
Allowance for Doubtful Accounts | The following table summarizes changes in the valuation of the allowance for doubtful accounts (in millions): Year Ended September 30, 2021 2020 2019 Beginning Balance $ 17.9 $ 12.5 $ 16.7 Charged to Operations 9.7 17.6 9.4 Write-offs ( 11.3 ) ( 12.2 ) ( 13.5 ) Ending Balance $ 16.3 $ 17.9 $ 12.5 |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Combined Fair Values, Net of Tax of Interest Rate Derivative Instruments | The Company records any differences paid or received on its interest rate hedges to interest expense, financing costs and other. The following table summarizes the combined fair values, net of tax, of the interest rate derivative instruments (in millions): Assets/(Liabilities) as of September 30, Instrument Fair Value Hierarchy 2021 2020 Designated interest rate swaps 1 Level 2 $ ( 7.7 ) $ ( 15.0 ) _______________________ 1. Assets are included in the consolidated balance sheets in prepaid expenses and other current assets, while liabilities are included in accrued expenses. |
Summary of Amounts of Gain (Loss) on Interest Rate Derivative Instruments Recognized in Other Comprehensive Income | The following table summarizes the amounts of gain (loss) on the interest rate derivative instruments recognized in other comprehensive income (in millions): Year Ended September 30, Instrument 2021 2020 2019 Designated interest rate swaps $ 7.3 $ ( 13.4 ) $ ( 1.6 ) |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Quarterly Financial Data [Abstract] | |
Summary of Unaudited Quarterly Data | The following table sets forth certain unaudited quarterly data for 2021 and 2020 which, in the opinion of management, reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of this data. Results of any one or more quarters are not necessarily indicative of results for an entire fiscal year or of continuing trends (in millions, except per share amounts): 2021 2020 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Net sales $ 1,875.4 $ 1,872.1 $ 1,318.0 $ 1,576.5 $ 1,755.0 $ 1,549.3 $ 1,197.1 $ 1,415.3 % of fiscal year’s net sales 28.2 % 28.2 % 19.8 % 23.7 % 29.7 % 26.2 % 20.2 % 23.9 % Gross profit $ 507.8 $ 517.4 $ 332.8 $ 399.7 $ 441.3 $ 368.7 $ 270.4 $ 340.1 % of fiscal year’s gross profit 28.9 % 29.4 % 18.9 % 22.7 % 31.1 % 26.0 % 19.0 % 23.9 % Net income (loss) from continuing operations $ 104.5 $ 79.8 $ ( 10.5 ) $ 47.4 $ 68.2 $ ( 4.1 ) $ ( 121.4 ) $ ( 24.0 ) Net income (loss) $ 104.8 $ 76.5 $ ( 6.3 ) $ ( 220.5 ) $ 71.9 $ ( 6.8 ) $ ( 122.6 ) $ ( 23.4 ) Net income (loss) attributable to common stockholders $ 98.8 $ 70.5 $ ( 12.3 ) $ ( 226.5 ) $ 65.9 $ ( 12.8 ) $ ( 128.6 ) $ ( 29.4 ) Net income (loss) from continuing operations per share - basic $ 1.23 $ 0.93 $ ( 0.24 ) $ 0.60 $ 0.79 $ ( 0.14 ) $ ( 1.85 ) $ ( 0.44 ) Net income (loss) per share - basic $ 1.24 $ 0.89 $ ( 0.18 ) $ ( 3.27 ) $ 0.84 $ ( 0.18 ) $ ( 1.87 ) $ ( 0.43 ) Net income (loss) from continuing operations per share - diluted $ 1.21 $ 0.91 $ ( 0.24 ) $ 0.59 $ 0.78 $ ( 0.14 ) $ ( 1.85 ) $ ( 0.44 ) Net income (loss) per share - diluted $ 1.22 $ 0.87 $ ( 0.18 ) $ ( 3.24 ) $ 0.83 $ ( 0.18 ) $ ( 1.87 ) $ ( 0.43 ) |
Company Overview - Additional I
Company Overview - Additional Information (Detail) $ in Millions | Feb. 10, 2021USD ($) | Sep. 30, 2021USD ($)ProvinceState | |
Company Overview [Line Items] | |||
Date of incorporation | Aug. 22, 1997 | ||
Proceeds from sale of business | [1],[2] | $ 836 | |
Stock Purchase Agreement [Member] | Interior Products [Member] | ASP Sailor Acquisition Corp [Member] | |||
Company Overview [Line Items] | |||
Proceeds from sale of business | $ 850 | ||
Adjusted purchase price | $ 842.7 | ||
U.S. [Member] | |||
Company Overview [Line Items] | |||
Number of states in which entity operates | State | 50 | ||
Canada [Member] | |||
Company Overview [Line Items] | |||
Number of provinces in which entity operates | Province | 6 | ||
[1] | See Note 3 for additional information. | ||
[2] | Unless otherwise noted, amounts include both continuing and discontinued operations. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | Oct. 01, 2020USD ($) | Sep. 30, 2021USD ($)SegmentCustomer | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Significant Accounting Policies [Line Items] | |||||
Number of operating segments | Segment | 1 | ||||
Number of customers, with at least 10% of revenue | Customer | 0 | ||||
Number of customers, with at least 10% of accounts receivable | Customer | 0 | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||
Accounts receivable reserve | $ 16.3 | $ 17.9 | $ 12.5 | $ 16.7 | |
Accounting Standards Update 2016-13 [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Change in accounting principle accounting standards update, adopted [true false] | true | ||||
Change in accounting principle, accounting standards update, adoption date | Oct. 1, 2020 | ||||
Accounting Standards Update 2016-13 [Member] | Restatement Adjustment [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Accounts receivable reserve | $ 4.3 | ||||
Retained earnings adjustment | $ 4.3 | ||||
Accounting Standards Update 2017-04 [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Change in accounting principle accounting standards update, adopted [true false] | true | ||||
Change in accounting principle, accounting standards update, adoption date | Oct. 1, 2020 | ||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||
Trade Names [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Finite-lived intangible assets, amortization method | accelerated basis over a five or ten year period | ||||
Minimum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Amortization period | 5 years | ||||
Minimum [Member] | Real Estate Property [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Operating lease expiration year | 2021 | ||||
Minimum [Member] | Equipment [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Operating lease expiration year | 2021 | ||||
Minimum [Member] | Trade Names [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Amortization period | 5 years | ||||
Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Amortization period | 20 years | ||||
Maximum [Member] | Real Estate Property [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Operating lease expiration year | 2038 | ||||
Maximum [Member] | Equipment [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Operating lease expiration year | 2028 | ||||
Maximum [Member] | Trade Names [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Amortization period | 10 years | ||||
Major Supplier Concentration Risk [Member] | Minimum [Member] | Cost of Goods, Total [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Goodwill impairment test period | 3 years | ||||
Major Supplier Concentration Risk [Member] | Maximum [Member] | Cost of Goods, Total [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Goodwill impairment test period | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Property and Equipment Estimated Useful Life (Detail) | 12 Months Ended |
Sep. 30, 2021 | |
Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 40 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions | Feb. 10, 2021 | Sep. 30, 2021 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Proceeds from sale of business | [1],[2] | $ 836 | |
Interior Products [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Loss on sale | 360.6 | ||
Consolidated goodwill balance included in carrying value of net assets | 730.9 | ||
Stock Purchase Agreement [Member] | Interior Products [Member] | FBM [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Proceeds from sale of business | $ 850 | ||
Adjusted purchase price | $ 842.7 | ||
[1] | See Note 3 for additional information. | ||
[2] | Unless otherwise noted, amounts include both continuing and discontinued operations. |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Reconciliation of Major Line Items Constituting Pretax Income (Loss) from Discontinued Operations to Net Income (Loss) from Discontinued Operations (Detail) - Interior Products [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disposal Group Including Discontinued Operation Income Statement Disclosures [Line Items] | |||
Net sales | $ 357.9 | $ 1,027.2 | $ 1,109.1 |
Cost of products sold | (264.2) | (748.5) | (800.1) |
Selling, general and administrative | (79.1) | (207.5) | (218.2) |
Depreciation and amortization | (13) | (71.1) | (74.4) |
Other income (loss) | 0.1 | 0.5 | (5.1) |
Loss on sale | (360.6) | ||
Pretax income (loss) from discontinued operations | (358.9) | 0.6 | 11.3 |
Provision for (benefit from) income taxes | (92.2) | 0.2 | 3 |
Net income (loss) from discontinued operations | $ (266.7) | $ 0.4 | $ 8.3 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Reconciliation of Carrying Amounts of Major Classes of Assets and Liabilities of Discontinued Operations to Total Assets (Detail) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | |
Carrying amounts of major classes of assets held for sale: | |||
Total current assets | $ 243,800,000 | ||
Total non-current assets | 1,120,500,000 | ||
Total assets held for sale | $ 0 | ||
Carrying amounts of major classes of liabilities held for sale: | |||
Total current liabilities | 139,400,000 | ||
Total non-current liabilities | 53,400,000 | ||
Total liabilities held for sale | $ 0 | ||
Interior Products [Member] | Discontinued Operations, Held-for-sale [Member] | |||
Carrying amounts of major classes of assets held for sale: | |||
Accounts receivable, net | [1] | 144,100,000 | |
Inventories, net | [1] | 73,200,000 | |
Prepaid expenses and other current assets | [1] | 26,500,000 | |
Total current assets | [1] | 243,800,000 | |
Property and equipment, net | [1] | 35,900,000 | |
Goodwill | [1] | 734,300,000 | |
Intangibles, net | [1] | 283,200,000 | |
Operating lease assets | [1] | 67,100,000 | |
Total non-current assets | [1] | 1,120,500,000 | |
Total assets held for sale | [1] | 1,364,300,000 | |
Carrying amounts of major classes of liabilities held for sale: | |||
Accounts payable | [1] | 68,800,000 | |
Accrued expenses | [1] | 54,100,000 | |
Current operating lease liabilities | [1] | 16,500,000 | |
Total current liabilities | [1] | 139,400,000 | |
Non-current operating lease liabilities | [1] | 49,900,000 | |
Other long-term liabilities | [1] | 3,500,000 | |
Total non-current liabilities | [1] | 53,400,000 | |
Total liabilities held for sale | [1] | $ 192,800,000 | |
[1] | Amounts reflect balances that were recast as a result of the Interior Products divestiture. There were no assets or liabilities held for sale as of September 30, 2021. |
Discontinued Operations - Sch_3
Discontinued Operations - Schedule of Reconciliation of Carrying Amounts of Major Classes of Assets and Liabilities of Discontinued Operations to Total Assets (Parenthetical) (Detail) | Sep. 30, 2021USD ($) |
Assets Of Disposal Group Including Discontinued Operation Current [Abstract] | |
Assets held for sale | $ 0 |
Liabilities held for sale | $ 0 |
Net Sales - Summary of Net Sale
Net Sales - Summary of Net Sales by Product Line and Geography (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | $ 1,875.4 | $ 1,872.1 | $ 1,318 | $ 1,576.5 | $ 1,755 | $ 1,549.3 | $ 1,197.1 | $ 1,415.3 | $ 6,642 | $ 5,916.7 | $ 5,996.1 |
Residential Roofing Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 3,516.2 | 3,079.4 | 2,836.1 | ||||||||
Non-Residential Roofing Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 1,688.8 | 1,616.8 | 1,559.5 | ||||||||
Complementary Building Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 1,437 | 1,220.5 | 1,600.5 | ||||||||
U.S. [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 6,421.6 | 5,739.1 | 5,809.4 | ||||||||
U.S. [Member] | Residential Roofing Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 3,443.4 | 3,023 | 2,779.7 | ||||||||
U.S. [Member] | Non-Residential Roofing Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 1,551.7 | 1,504.6 | 1,437.1 | ||||||||
U.S. [Member] | Complementary Building Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 1,426.5 | 1,211.5 | 1,592.6 | ||||||||
Canada [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 220.4 | 177.6 | 186.7 | ||||||||
Canada [Member] | Residential Roofing Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 72.8 | 56.4 | 56.4 | ||||||||
Canada [Member] | Non-Residential Roofing Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 137.1 | 112.2 | 122.4 | ||||||||
Canada [Member] | Complementary Building Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | $ 10.5 | $ 9 | $ 7.9 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Detail) - USD ($) | Jan. 02, 2018 | Sep. 30, 2021 | Sep. 30, 2020 |
Preferred stock, issuance | 0 | 0 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Allied Acquisition [Member] | Investment Agreement [Member] | Series A Cumulative Convertible Participating Preferred Stock [Member] | |||
Preferred stock, issuance | 400,000 | ||
Preferred stock, par value | $ 0.01 | ||
Preferred stock, liquidation preference value | $ 400,000,000 | ||
Preferred stock, liquidation purchase price per share | $ 1,000 | ||
Preferred stock conversion price per share | $ 41.26 | ||
Preferred stock dividend rate | 6.00% | ||
Common stock to be issued upon conversion of convertible preferred stock | 9,694,619 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Components and Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |||||
Numerator: | |||||||||||||||
Net income (loss) from continuing operations | $ 104.5 | $ 79.8 | $ (10.5) | $ 47.4 | $ 68.2 | $ (4.1) | $ (121.4) | $ (24) | $ 221.2 | $ (81.3) | $ (18.9) | ||||
Dividends on Preferred Stock | (24) | [1] | (24) | (24) | |||||||||||
Net income (loss) from continuing operations attributable to common stockholders - Basic | 197.2 | (105.3) | (42.9) | ||||||||||||
Dividends on Preferred Stock | 24 | [1] | 24 | 24 | |||||||||||
Net income (loss) from continuing operations attributable to common stockholders - Diluted | 221.2 | (105.3) | (42.9) | ||||||||||||
Net income (loss) from discontinued operations attributable to common stockholders - Basic and Diluted | (266.7) | 0.4 | 8.3 | ||||||||||||
Net income (loss) attributable to common stockholders - Basic | (69.5) | (104.9) | (34.6) | ||||||||||||
Net income (loss) attributable to common stockholders - Diluted | $ (45.5) | $ (104.9) | $ (34.6) | ||||||||||||
Denominator: | |||||||||||||||
Weighted-average common shares outstanding - basic | [2] | 69,700,000 | 68,800,000 | 68,400,000 | |||||||||||
Effect of common share equivalents | 1,100,000 | ||||||||||||||
Effect of convertible Preferred Stock | [1] | 9,700,000 | |||||||||||||
Weighted-average common shares outstanding - diluted | [2] | 80,500,000 | 68,800,000 | 68,400,000 | |||||||||||
Net income (loss) per share: | |||||||||||||||
Basic - Continuing operations | $ 1.23 | $ 0.93 | $ (0.24) | $ 0.60 | $ 0.79 | $ (0.14) | $ (1.85) | $ (0.44) | $ 2.83 | [2] | $ (1.53) | [2] | $ (0.63) | [2] | |
Basic - Discontinued operations | [2] | (3.83) | 0.01 | 0.12 | |||||||||||
Basic net income (loss) per share | 1.24 | 0.89 | (0.18) | (3.27) | 0.84 | (0.18) | (1.87) | (0.43) | (1) | [2] | (1.52) | [2] | (0.51) | [2] | |
Diluted - Continuing operations | 1.21 | 0.91 | (0.24) | 0.59 | 0.78 | (0.14) | (1.85) | (0.44) | 2.75 | [2] | (1.53) | [2] | (0.63) | [2] | |
Diluted - Discontinued operations | [2] | (3.32) | 0.01 | 0.12 | |||||||||||
Diluted net income (loss) per share | $ 1.22 | $ 0.87 | $ (0.18) | $ (3.24) | $ 0.83 | $ (0.18) | $ (1.87) | $ (0.43) | $ (0.57) | [2] | $ (1.52) | [2] | $ (0.51) | [2] | |
[1] | The hypothetical conversion of the Preferred Stock became dilutive for the year ended September 30, 2021, primarily stemming from the significant income from continuing operations and offsetting loss from discontinued operations in 2021, and their combined effect on the Company’s calculation of diluted net income (loss) per share. | ||||||||||||||
[2] | See Note 5 for detailed calculations and further discussion. |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Preferred Stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share | 9,700,000 | 9,700,000 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share | 500,000 | 2,000,000 | 1,300,000 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net income (loss) per share | 300,000 | 100,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Millions | Feb. 11, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation number of additional shares authorized | 4,850,000 | |||
Stock-based compensation number of shares authorized | 5,335,879 | |||
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares that will vest | 100.00% | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-qualified options granted expiration period | 10 years | |||
Vesting period | 3 years | |||
Allocated stock-based compensation expense | $ 4.4 | $ 4.1 | $ 3.9 | |
Unrecognized compensation cost related to unvested stock | $ 4.3 | |||
Unrecognized compensation cost related to unvested stock, expected weighted-average period of recognition | 1 year 8 months 12 days | |||
Phantom Share Units (PSUs) [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares that will vest | 0.00% | |||
Phantom Share Units (PSUs) [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares that will vest | 200.00% | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated stock-based compensation expense | $ 14 | $ 11.9 | $ 11.4 | |
Unrecognized compensation cost related to unvested stock | $ 15.3 | |||
Unrecognized compensation cost related to unvested stock, expected weighted-average period of recognition | 1 year 9 months 18 days |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Values of Options, Black-Scholes Option-Pricing Model, Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 0.44% | 1.61% | 2.86% |
Expected volatility | 48.15% | 34.26% | 29.68% |
Expected life (in years) | 5 years 4 months 9 days | 5 years 3 months 3 days | 5 years 2 months 19 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock-based compensation - Stoc
Stock-based compensation - Stock Options Outstanding and Activity During the Period (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Options Outstanding | ||
Balance as of September 30, 2020 | 2,500,000 | |
Granted | 300,000 | |
Exercised | (900,000) | |
Canceled/Forfeited | (100,000) | |
Expired | 0 | |
Balance as of September 30, 2021 | 1,800,000 | 2,500,000 |
Vested and expected to vest after September 30, 2021 | 1,800,000 | |
Exercisable as of September 30, 2021 | 1,100,000 | |
Weighted-Average Exercise Price | ||
Beginning Balance | $ 33.09 | |
Granted | 35.78 | |
Exercised | 29.88 | |
Canceled/Forfeited | 40.32 | |
Expired | 15.47 | |
Ending Balance | 34.88 | $ 33.09 |
Vested and expected to vest after September 30, 2021 | 34.89 | |
Exercisable as of September 30, 2021 | $ 36.35 | |
Weighted-Average Remaining Contractual Life | ||
Balance | 5 years 9 months 18 days | 5 years 10 months 24 days |
Vested and expected to vest after September 30, 2021 | 5 years 9 months 18 days | |
Exercisable as of September 30, 2021 | 4 years 6 months | |
Aggregate Intrinsic Value | ||
Balance | $ 24.9 | $ 6.9 |
Vested and expected to vest after September 30, 2021 | 24.5 | |
Exercisable as of September 30, 2021 | $ 14.5 |
Stock-based compensation - St_2
Stock-based compensation - Stock Option Grants, Vesting, and Exercises (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Weighted-average fair value of stock options granted | $ 15.62 | $ 10.35 | $ 8.91 |
Total grant date fair value of stock options vested | $ 5.6 | $ 4.3 | $ 3.9 |
Total intrinsic value of stock options exercised | $ 15.7 | $ 2.1 | $ 2.8 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Shares and Units Outstanding and Activity During the Period (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Weighted - Average Grant Date Fair Value | |||
Granted | $ 38.18 | $ 31.81 | $ 28.02 |
Restricted Stock Units (RSUs) [Member] | |||
Outstanding | |||
Balance as of September 30, 2020 | 1,200,000 | ||
Granted | 400,000 | ||
Released | (400,000) | ||
Canceled/Forfeited | (200,000) | ||
Balance as of September 30, 2021 | 1,000,000 | 1,200,000 | |
Vested and expected to vest after September 30, 2021 | 1,100,000 | ||
Weighted - Average Grant Date Fair Value | |||
Balance as of September 30, 2020 | $ 33.55 | ||
Granted | 38.18 | ||
Released | 41.50 | ||
Canceled/Forfeited | 29.87 | ||
Balance as of September 30, 2021 | 33.76 | $ 33.55 | |
Vested and expected to vest after September 30, 2021 | $ 33.91 |
Stock-based Compensation - Re_2
Stock-based Compensation - Restricted Shares and Units Outstanding and Activity During the Period (Parenthetical) (Detail) | Sep. 30, 2021 |
Phantom Share Units (PSUs) [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of shares expected to be vested | 100.00% |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule Of Restricted Stock Units Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Weighted-average fair value of RSUs granted | $ 38.18 | $ 31.81 | $ 28.02 |
Total grant date fair value of RSUs vested | $ 16.5 | $ 14.4 | $ 16.1 |
Total intrinsic value of RSUs released | $ 15.2 | $ 9.8 | $ 11.5 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Prepaid Expenses And Other Current Assets [Abstract] | ||
Vendor rebates | $ 289.5 | $ 306.2 |
Other | 56.4 | 45.6 |
Total prepaid expenses and other current assets | $ 345.9 | $ 351.8 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment, net (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 591.1 | $ 525.6 |
Accumulated depreciation | (354.5) | (317.8) |
Total property and equipment, net | 236.6 | 207.8 |
Land and Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 85.9 | 76.5 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 417.3 | 397.3 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 58.9 | 42.1 |
Finance Lease Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 29 | $ 9.7 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 58.9 | $ 58.1 | $ 60.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Changes in goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 1,756.1 | $ 1,756.3 |
Translation and other adjustments | 4.8 | (0.2) |
Ending balance | $ 1,760.9 | $ 1,756.1 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | $ 1,076.4 | $ 1,089.4 | |
Accumulated amortization | (671.4) | (581.2) | |
Total amortizable intangible assets, net | 405 | 508.2 | |
Indefinite-lived trademarks | 9.8 | 9.8 | |
Total intangibles, net | $ 414.8 | 518 | |
Weighted Average [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years 4 months 24 days | ||
Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Maximum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Noncompete Agreements [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | $ 0.2 | 0.2 | |
Noncompete Agreements [Member] | Weighted Average [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | [1] | 8 months 12 days | |
Customer Relationships [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | $ 1,076.2 | 1,085.5 | |
Customer Relationships [Member] | Weighted Average [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | [1] | 15 years 4 months 24 days | |
Beneficial Lease Arrangements [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets | $ 3.7 | ||
[1] | As of September 30, 2021 . |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Goodwill And Intangible Assets [Line Items] | |||||
Amortization | $ 103.3 | $ 261.9 | $ 142.9 | ||
Minimum [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Maximum [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||
Weighted Average [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years 4 months 24 days | ||||
Customer Relationships [Member] | Weighted Average [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | [1] | 15 years 4 months 24 days | |||
Allied Acquisition [Member] | Tradenames [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Amortization | $ 142.6 | ||||
[1] | As of September 30, 2021 . |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Estimated Future Amortization (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2022 | $ 82.1 | |
2023 | 66.2 | |
2024 | 53.1 | |
2025 | 42.8 | |
2026 | 34.5 | |
Thereafter | 126.3 | |
Total amortizable intangible assets, net | $ 405 | $ 508.2 |
Financing Arrangements - Long-t
Financing Arrangements - Long-term Debt Instruments (Detail) - USD ($) | Sep. 30, 2021 | May 31, 2021 | Sep. 30, 2020 | Jan. 02, 2018 | |||
Debt Instrument [Line Items] | |||||||
Borrowings under revolving lines of credit/term loans, net | $ 251,100,000 | ||||||
Current portion | $ 0 | 0 | |||||
Long-term borrowings under senior notes | 642,800,000 | 1,581,600,000 | |||||
Long-term debt, net | 1,614,500,000 | 2,494,200,000 | |||||
Equipment financing facilities | [1] | 2,600,000 | |||||
2025 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior Notes | [2] | 1,285,700,000 | |||||
2026 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior Notes | [3] | 296,600,000 | 295,900,000 | ||||
2029 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior Notes | [4] | 346,200,000 | |||||
Equipment Financing Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Current portion | (2,600,000) | ||||||
Revolving Lines of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings under revolving lines of credit/term loans, net | 251,100,000 | ||||||
Revolving Lines of Credit [Member] | 2023 Revolver | U.S. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total Borrowings under revolving lines of credit/term loans | [5] | 251,100,000 | |||||
Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Current portion | (10,000,000) | (9,700,000) | |||||
Borrowings under revolving lines of credit/term loans, net | 971,700,000 | 912,600,000 | |||||
Term Loan [Member] | 2025 Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total Borrowings under revolving lines of credit/term loans | $ 922,300,000 | [6] | $ 970,000,000 | ||||
Term Loan [Member] | 2028 Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total Borrowings under revolving lines of credit/term loans | $ 981,700,000 | [7] | $ 1,000,000,000 | ||||
[1] | Fixed interest rates ranging from 2.33 % to 2.89 % as of September 30, 2020 . | ||||||
[2] | Interest rate of 4.88 as of September 30, 2020 . | ||||||
[3] | Interest rate of 4.50 % for all periods presented. | ||||||
[4] | Interest rate of 4.125 % as of September 30, 2021 . | ||||||
[5] | Effective rate on borrowings of 1.89 % as of September 30, 2020 . | ||||||
[6] | Interest rate of 2.41 % as of September 30, 2020 . | ||||||
[7] | Interest rate of 2.33 % as of September 30, 2021 . |
Financing Arrangements - Long_2
Financing Arrangements - Long-term Debt Instruments (Parenthetical) (Detail) | May 10, 2021 | Jan. 02, 2018 | Sep. 30, 2021 | Sep. 30, 2020 |
Equipment Financing Facilities [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Equipment financing facilities, fixed interest rate percentage | 2.33% | 2.33% | ||
Equipment Financing Facilities [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Equipment financing facilities, fixed interest rate percentage | 2.89% | 2.89% | ||
2025 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate at period end | 4.88% | |||
Debt instrument maturity year | 2025 | |||
2026 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate at period end | 4.50% | 4.50% | ||
Debt instrument maturity date | Nov. 15, 2026 | Nov. 15, 2026 | ||
2029 Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate at period end | 4.125% | 4.125% | ||
Debt instrument maturity date | May 15, 2029 | May 15, 2029 | ||
Revolving Lines of Credit [Member] | 2023 ABL [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date | Jan. 2, 2023 | |||
Revolving Lines of Credit [Member] | 2023 ABL [Member] | U.S. [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, interest rate at period end | 1.89% | |||
Line of credit facility, expiration date | Jan. 2, 2018 | |||
Term Loan [Member] | Term Loan, Matures January 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate at period end | 2.41% | |||
Debt instrument maturity date | Jan. 2, 2025 | Jan. 2, 2025 | ||
Term Loan [Member] | 2028 Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate at period end | 2.33% | |||
Debt instrument maturity date | May 19, 2028 |
Financing Arrangements - 2021 D
Financing Arrangements - 2021 Debt Refinancing - Additional Information (Detail) - USD ($) | May 19, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | May 31, 2021 | May 10, 2021 | Jan. 02, 2018 | |
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 3,570,000,000 | ||||||
Loss on extinguishment of debt | $ (50,700,000) | $ (60,200,000) | $ (14,700,000) | ||||
Capitalized debt issuance costs | 29,000,000 | ||||||
Senior Notes, Matures May 2029 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 350,000,000 | $ 350,000,000 | |||||
Redemption of senior debt | $ 1,300,000,000 | ||||||
Debt redemption price percentage of principal amount | 102.438% | ||||||
Debt instrument, redemption description | On May 19, 2021, the Company used the net proceeds from the 2029 Senior Notes offering, together with cash on hand and borrowings under the New Senior Secured Credit Facilities, to redeem all $1.30 billion aggregate principal amount outstanding of the 2025 Senior Notes (as defined below) at a redemption price of 102.438%, to refinance all outstanding borrowings under the 2025 Term Loan | ||||||
2026 ABL Facility [Member] | Revolving Lines of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 1,300,000,000 | 1,300,000,000 | |||||
2028 Term Loan [Member] | Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term line of credit | $ 981,700,000 | [1] | $ 1,000,000,000 | ||||
[1] | Interest rate of 2.33 % as of September 30, 2021 . |
Financing Arrangements - 2029 S
Financing Arrangements - 2029 Senior Notes - Additional Information (Detail) - USD ($) | May 10, 2021 | Sep. 30, 2021 | May 31, 2021 | |
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | $ 23,000,000 | |||
Senior Notes, Matures May 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, aggregate principal amount | $ 350,000,000 | $ 350,000,000 | ||
Debt instrument interest rate | 4.125% | 4.125% | ||
Debt instrument, issue price percentage | 100.00% | |||
Debt instrument maturity date | May 15, 2029 | May 15, 2029 | ||
Debt instrument, interest payable commencement date | Nov. 15, 2021 | |||
Unamortized debt issuance costs | $ 3,800,000 | |||
Senior notes payable | [1] | $ 346,200,000 | ||
[1] | Interest rate of 4.125 % as of September 30, 2021 . |
Financing Arrangements - 2026 A
Financing Arrangements - 2026 ABL - Additional Information (Detail) - USD ($) | May 19, 2021 | Sep. 30, 2021 | May 31, 2021 | Sep. 30, 2020 | Jan. 02, 2018 |
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 3,570,000,000 | ||||
Borrowings under revolving lines of credit/term loans, net | $ 251,100,000 | ||||
Unamortized debt issuance costs | $ 23,000,000 | ||||
2026 ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | $ 0 | ||||
Revolving Lines of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings under revolving lines of credit/term loans, net | $ 251,100,000 | ||||
Revolving Lines of Credit [Member] | 2026 ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,300,000,000 | $ 1,300,000,000 | |||
Debt instrument maturity date | May 19, 2026 | ||||
Line of credit facility, unused fees | 0.20% | ||||
Fixed charge coverage ratio | 100.00% | ||||
Debt instrument covenant compliance | The 2026 ABL contains a springing financial covenant that requires a minimum 1.00 : 1.00 Fixed Charge Coverage Ratio (consolidated EBITDA less capital expenditures to fixed charges, each as defined in the 2026 ABL credit agreement) as of the end of each fiscal quarter (in each case, calculated on a trailing four fiscal quarter basis). The covenant would become operative if the Company failed to maintain a specified minimum amount of availability to borrow under the 2026 ABL, which was not applicable to the Company as of September 30, 2021. | ||||
Borrowings under revolving lines of credit/term loans, net | $ 0 | ||||
Unamortized debt issuance costs | 7,700,000 | ||||
Revolving Lines of Credit [Member] | U.S. [Member] | 2026 ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | ||||
Standby letters of credit outstanding | $ 12,500,000 | ||||
Revolving Lines of Credit [Member] | Canada [Member] | 2026 ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||||
Base Rate [Member] | Revolving Lines of Credit [Member] | Minimum [Member] | 2026 ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 0.25% | ||||
Base Rate [Member] | Revolving Lines of Credit [Member] | Maximum [Member] | 2026 ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 0.75% | ||||
LIBOR [Member] | Revolving Lines of Credit [Member] | Minimum [Member] | 2026 ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 1.25% | ||||
LIBOR [Member] | Revolving Lines of Credit [Member] | Maximum [Member] | 2026 ABL Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings | 1.75% |
Financing Arrangements - 2028 T
Financing Arrangements - 2028 Term Loan - Additional Information (Detail) - USD ($) $ in Millions | May 19, 2021 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 23 | |
Term Loan, Matures 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | 15.8 | |
Term Loan [Member] | Term Loan, Matures 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 1,000 | 981.7 |
Debt instrument, frequency of periodic payment | quarterly | |
Debt Instrument, Periodic Payment | $ 2.5 | |
Debt instrument maturity date | May 19, 2028 | |
Unamortized debt issuance costs | $ 15.8 | |
Term Loan [Member] | Term Loan, Matures 2028 [Member] | Base Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Base rate borrowings | 1.25% | |
Term Loan [Member] | Term Loan, Matures 2028 [Member] | Base Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Base rate borrowings | 1.50% | |
Term Loan [Member] | Term Loan, Matures 2028 [Member] | LIBOR [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Base rate borrowings | 2.25% | |
Term Loan [Member] | Term Loan, Matures 2028 [Member] | LIBOR [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Base rate borrowings | 2.50% |
Financing Arrangements - 2026 S
Financing Arrangements - 2026 Senior Notes - Additional Information (Detail) - USD ($) | May 19, 2021 | Oct. 28, 2019 | Oct. 09, 2019 | Jan. 02, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | [1] | |||
Debt Instrument [Line Items] | |||||||||||
Loss on debt extinguishment | $ 50,700,000 | $ 60,200,000 | $ 14,700,000 | ||||||||
Payments of debt issuance costs | $ 65,300,000 | 20,300,000 | [1] | $ 4,300,000 | [1] | $ 800,000 | |||||
Unamortized debt issuance costs | $ 23,000,000 | ||||||||||
Senior Notes, Matures November 2026 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 4.50% | 4.50% | |||||||||
Debt instrument maturity date | Nov. 15, 2026 | Nov. 15, 2026 | |||||||||
Redemption of senior debt | $ 300,000,000 | ||||||||||
Debt redemption price percentage of principal amount | 103.188% | ||||||||||
Debt instrument, redemption description | On October 28, 2019, the Company used the net proceeds from the offering, together with cash on hand and available borrowings under the 2023 ABL (as defined below), to redeem all $300.0 million aggregate principal amount outstanding of the 2023 Senior Notes (as defined below) at a redemption price of 103.188% | ||||||||||
Payments of debt issuance costs | $ 4,700,000 | ||||||||||
Unamortized debt issuance costs | $ 3,400,000 | ||||||||||
Senior notes payable | [2] | $ 296,600,000 | $ 295,900,000 | ||||||||
Senior Notes, Matures October 2023 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, aggregate principal amount | $ 300,000,000 | ||||||||||
Debt instrument interest rate | 4.50% | ||||||||||
Debt instrument, issue price percentage | 100.00% | ||||||||||
Debt instrument maturity date | Nov. 15, 2026 | ||||||||||
Debt instrument, interest payable commencement date | May 15, 2020 | ||||||||||
Refinancing the Existing 2023 Senior Notes with Issuance of 2026 Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loss on debt extinguishment | $ 14,700,000 | ||||||||||
[1] | Unless otherwise noted, amounts include both continuing and discontinued operations. | ||||||||||
[2] | Interest rate of 4.50 % for all periods presented. |
Financing Arrangements - Financ
Financing Arrangements - Financing - Allied Acquisition - Additional Information (Detail) - USD ($) | Jan. 02, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | [1] | |||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 3,570,000,000 | |||||||
Borrowings under senior notes | [1] | $ 350,000,000 | $ 300,000,000 | |||||
Payments of debt issuance costs | 65,300,000 | $ 20,300,000 | [1] | 4,300,000 | [1] | $ 800,000 | ||
Senior Notes, Matures 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings under senior notes | 1,300,000,000 | |||||||
Revolving Lines of Credit [Member] | 2023 ABL [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 1,300,000,000 | |||||||
Proceeds from Lines of Credit | 525,000,000 | |||||||
Term Loan [Member] | Term Loan, Matures January 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term line of credit | $ 970,000,000 | $ 922,300,000 | [2] | |||||
[1] | Unless otherwise noted, amounts include both continuing and discontinued operations. | |||||||
[2] | Interest rate of 2.41 % as of September 30, 2020 . |
Financing Arrangements - 2023 A
Financing Arrangements - 2023 ABL - Additional Information (Detail) - USD ($) | Jan. 02, 2018 | Sep. 30, 2021 | May 19, 2021 |
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 3,570,000,000 | ||
Unamortized debt issuance costs | $ 23,000,000 | ||
Revolving Lines of Credit [Member] | 2023 ABL [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,300,000,000 | ||
Debt instrument maturity date | Jan. 2, 2023 | ||
Unamortized debt issuance costs | $ 800,000 | ||
Standby letters of credit outstanding | $ 0 | ||
Revolving Lines of Credit [Member] | U.S. [Member] | 2023 ABL [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | ||
Revolving Lines of Credit [Member] | Canada [Member] | 2023 ABL [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 |
Financing Arrangements - 2025 T
Financing Arrangements - 2025 Term Loan - Additional Information (Detail) - USD ($) | Jan. 02, 2018 | Feb. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | May 19, 2021 | ||
Debt Instrument [Line Items] | ||||||||
Additional principal payment | [1] | $ 509,300,000 | $ 1,870,000,000 | $ 2,114,000,000 | ||||
Unamortized debt issuance costs | $ 23,000,000 | |||||||
Term Loan [Member] | Term Loan, Matures January 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term line of credit | $ 970,000,000 | $ 922,300,000 | [2] | |||||
Debt instrument, frequency of periodic payment | quarterly | |||||||
Debt Instrument, Periodic Payment | $ 2,400,000 | |||||||
Debt instrument maturity date | Jan. 2, 2025 | Jan. 2, 2025 | ||||||
Additional principal payment | $ 423,900,000 | |||||||
Unamortized debt issuance costs | $ 9,500,000 | $ 1,100,000 | ||||||
Debt instrument, Remaining principal payment | $ 517,000,000 | |||||||
Term Loan [Member] | Term Loan, Matures January 2025 [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Base rate borrowings | 1.25% | |||||||
Term Loan [Member] | Term Loan, Matures January 2025 [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Base rate borrowings | 2.25% | |||||||
[1] | Unless otherwise noted, amounts include both continuing and discontinued operations. | |||||||
[2] | Interest rate of 2.41 % as of September 30, 2020 . |
Financing Arrangements - 2025 S
Financing Arrangements - 2025 Senior Notes - Additional Information (Detail) - USD ($) $ in Millions | May 19, 2021 | Sep. 30, 2021 | Oct. 25, 2017 |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 23 | ||
Senior Notes, Matures 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, aggregate principal amount | $ 1,300 | ||
Debt instrument interest rate | 4.875% | ||
Debt instrument, issue price percentage | 100.00% | ||
Debt instrument, redemption description | On May 19, 2021, in conjunction with the 2021 Debt Refinancing, the Company redeemed all $1.30 billion aggregate principal amount outstanding of the 2025 Senior Notes at a redemption price of 102.438% plus accrued interest | ||
Redemption of senior debt | $ 1,300 | ||
Debt redemption price percentage of principal amount | 102.438% | ||
Unamortized debt issuance costs | $ 12.5 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Maturities of Long-term Debt (Detail) $ in Millions | Sep. 30, 2021USD ($) | |
Debt Instrument [Line Items] | ||
2022 | $ 10 | |
2023 | 10 | |
2024 | 10 | |
2025 | 10 | |
2026 | 10 | |
Thereafter | 1,597.5 | |
Total debt | 1,647.5 | |
Unamortized debt issuance costs | (23) | |
Total debt, net | 1,624.5 | |
2026 ABL [Member] | ||
Debt Instrument [Line Items] | ||
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total debt | 0 | |
Unamortized debt issuance costs | 0 | |
Total debt, net | 0 | |
2028 Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
2022 | 10 | |
2023 | 10 | |
2024 | 10 | |
2025 | 10 | |
2026 | 10 | |
Thereafter | 947.5 | |
Total debt | 997.5 | |
Unamortized debt issuance costs | (15.8) | |
Total debt, net | 981.7 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
2022 | 0 | [1] |
2023 | 0 | [1] |
2024 | 0 | [1] |
2025 | 0 | [1] |
2026 | 0 | [1] |
Thereafter | 650 | [1] |
Total debt | 650 | [1] |
Unamortized debt issuance costs | (7.2) | [1] |
Total debt, net | $ 642.8 | [1] |
[1] | Represent principal amounts for 2026 Senior Notes and 2029 Senior Notes. |
Leases - Components of Operatin
Leases - Components of Operating Lease Costs Recognized in Consolidated Statements of Operations Amounts Include Both Continuing and Discontinued Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Operating lease costs | $ 106.1 | $ 104.5 |
Amortization of right-of-use assets | 5.2 | 4.4 |
Interest on lease obligations | 0.5 | 0.1 |
Variable lease costs | 9.2 | 8.6 |
Total lease costs | $ 121 | $ 117.6 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in measurement of lease obligations: | ||
Operating cash flows from operating leases | $ 106.3 | $ 118.7 |
Operating cash flows from finance leases | 0.5 | 0.2 |
Financing cash flows from finance leases | 4 | 4.3 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 29.1 | 6.2 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 55.4 | $ 26 |
Leases - Additional Information
Leases - Additional Information (Detail) | Sep. 30, 2021 |
Leases [Abstract] | |
Operating lease, weighted-average remaining lease term | 5 years 10 months 24 days |
Operating lease, weighted-average discount rate | 3.57% |
Financing lease, weighted-average remaining lease term | 5 years 4 months 24 days |
Financing lease, weighted-average discount rate | 3.41% |
Leases - Summary of Future Leas
Leases - Summary of Future Lease Payments (Detail) $ in Millions | Sep. 30, 2021USD ($) |
Operating Leases | |
2022 | $ 100.9 |
2023 | 87.8 |
2024 | 74.3 |
2025 | 52.3 |
2026 | 39 |
Thereafter | 88.5 |
Total future lease payments | 442.8 |
Imputed interest | (43) |
Total lease liabilities | 399.8 |
Finance Leases | |
2022 | 5.8 |
2023 | 5.8 |
2024 | 5.8 |
2025 | 5.8 |
2026 | 4.8 |
Thereafter | 2.3 |
Total future lease payments | 30.3 |
Imputed interest | (2.4) |
Total lease liabilities | $ 27.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 1,760.9 | $ 1,862.3 | $ 1,884.2 | |
Other comprehensive income (loss) before reclassifications | 11.3 | (14.1) | (3.3) | |
Balance | 1,742.8 | 1,760.9 | 1,862.3 | |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (19.7) | (19) | (17.3) | |
Other comprehensive income (loss) before reclassifications | 4 | (0.7) | (1.7) | |
Balance | (15.7) | (19.7) | (19) | |
Derivative Financial Instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (15) | (1.6) | ||
Other comprehensive income (loss) before reclassifications | 7.3 | (13.4) | (1.6) | |
Balance | (7.7) | (15) | (1.6) | |
AOCI [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | [1] | (34.7) | (20.6) | (17.3) |
Other comprehensive income (loss) before reclassifications | 11.3 | (14.1) | (3.3) | |
Balance | [1] | $ (23.4) | $ (34.7) | $ (20.6) |
[1] | Accumulated Other Comprehensive Income (Loss) ("AOCI"). |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | Dec. 31, 2017 | Sep. 30, 2021USD ($)ProvinceState | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2016USD ($) |
Operating Loss Carryforwards [Line Items] | |||||
Provision for (benefit from) income taxes | $ 77,300,000 | $ (27,000,000) | $ (3,200,000) | ||
U.S. federal income taxes at statutory rate | 35.00% | 21.00% | 21.00% | 21.00% | |
Operating loss carryforwards | $ 135,300,000 | ||||
Net operating loss carryforward utilized | $ 25,400,000 | ||||
Goodwill | 1,760,900,000 | $ 1,756,100,000 | $ 1,756,300,000 | ||
Goodwill amortizable for income tax | 1,100,000,000 | ||||
Uncertain tax positions | $ 0 | ||||
U.S. [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Number of states in which entity operates | State | 50 | ||||
Canada [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Number of provinces in which entity operates | Province | 6 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Current: | |||
Federal | $ 28.4 | $ (1.5) | $ (2.5) |
Foreign | 3.6 | 1.4 | 0.6 |
State | 13.3 | 0.5 | 1 |
Total current taxes | 45.3 | 0.4 | (0.9) |
Deferred: | |||
Federal | 27.6 | (21) | (1.4) |
Foreign | 0.1 | 0.2 | 0 |
State | 4.3 | (6.6) | (0.9) |
Total deferred taxes | 32 | (27.4) | (2.3) |
Provision for (benefit from) income taxes | $ 77.3 | $ (27) | $ (3.2) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Detail) | Dec. 31, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Income Tax Disclosure [Abstract] | ||||
U.S. federal income taxes at statutory rate | 35.00% | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 4.60% | 4.10% | 1.10% | |
Share-based payments | (0.30%) | (0.50%) | (1.90%) | |
Deferred tax asset/liability remeasurement | 0.00% | 0.60% | 0.00% | |
Repatriation transition tax | 0.00% | 0.00% | 2.10% | |
Non-deductible meals and entertainment | 0.20% | (0.80%) | (6.40%) | |
Other | 0.40% | 0.50% | (1.40%) | |
Effective tax rate | 25.90% | 24.90% | 14.50% |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Parenthetical) (Detail) | Dec. 31, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Income Tax Disclosure [Abstract] | ||||
U.S. federal income taxes at statutory rate | 35.00% | 21.00% | 21.00% | 21.00% |
Income Taxes - Schedule of Temp
Income Taxes - Schedule of Temporary Differences That Give Rise to Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Deferred compensation | $ 9 | $ 10.4 |
Allowance for doubtful accounts | 5.6 | 5.2 |
Accrued vacation and other | 15.1 | 9 |
Inventory valuation | 15 | 12.7 |
Tax loss carryforwards | 0.8 | 3.1 |
Unrealized loss on financial derivatives | 2.4 | 4.8 |
Lease liability | 100.7 | 94.8 |
Excess tax over book depreciation and amortization | 15.4 | |
Total deferred tax assets | 164 | 140 |
Deferred tax liabilities: | ||
Excess tax over book depreciation and amortization | (115.3) | |
Lease right-of-use asset | (100.2) | (96.5) |
Total deferred tax liabilities | (211.8) | (100.2) |
Net deferred income tax liabilities | $ (71.8) | |
Net deferred income tax assets | $ 63.8 |
Geographic Data - Schedule Of G
Geographic Data - Schedule Of Geographic Information (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 651.4 | $ 718.1 |
U.S. [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 641.3 | 708.2 |
Canada [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 10.1 | $ 9.9 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Allowance For Doubtful Accounts [Abstract] | |||
Balance at beginning of Year | $ 17.9 | $ 12.5 | $ 16.7 |
Charged to Operations | 9.7 | 17.6 | 9.4 |
Write-offs | (11.3) | (12.2) | (13.5) |
Balance at end of year | $ 16.3 | $ 17.9 | $ 12.5 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) $ in Millions | 12 Months Ended |
Sep. 30, 2021USD ($) | |
2025 Senior Notes [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Debt instrument maturity year | 2025 |
Fair Value, Inputs, Level 2 [Member] | 2026 Senior Notes [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Debt instrument maturity year | 2026 |
Fair Value, Inputs, Level 2 [Member] | 2029 Senior Notes [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Debt instrument maturity year | 2029 |
Carrying Value [Member] | Fair Value, Inputs, Level 2 [Member] | 2026 Senior Notes [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Senior notes | $ 300 |
Carrying Value [Member] | Fair Value, Inputs, Level 2 [Member] | 2029 Senior Notes [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Senior notes | 350 |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | 2026 Senior Notes [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Senior notes | 312 |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | 2029 Senior Notes [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Senior notes | $ 349.1 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021USD ($)Age | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan Service Period | 90 days | ||
Description of Defined Contribution Pension and Other Postretirement Plans | The Company currently matches the first 50% of participant contributions limited to 6% of a participant’s gross compensation (maximum Company match is 3%). | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 100.00% | ||
Defined Contribution Plan Minimum Annual Contributions Per Employee Percent | 1.00% | ||
Defined First 50% of Participant Contribution Plan | 50.00% | ||
Defined Contribution Plan, Cost Recognized | $ 12.4 | $ 12.1 | $ 11.7 |
Pension Contributions | 0.7 | 1.7 | 1 |
Multi-employer defined benefit plans aggregated expense | $ 2.1 | $ 2.5 | $ 2.6 |
Minimum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan Qualifying Age | Age | 21 | ||
Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 3.00% |
Financial Derivatives - Additio
Financial Derivatives - Additional Information (Detail) | Sep. 11, 2019USD ($)Agreement | Sep. 30, 2021USD ($) |
Derivative [Line Items] | ||
Number of interest rate swap agreements | Agreement | 2 | |
5-Year Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 250,000,000 | |
Term of derivative agreement | 5 years | |
Derivative, maturity date | Aug. 30, 2024 | |
Derivative, fixed interest rate | 1.49% | |
Derivative fair value, net of tax | $ 5,300,000 | |
3-Year Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 250,000,000 | |
Term of derivative agreement | 3 years | |
Derivative, maturity date | Aug. 30, 2022 | |
Derivative, fixed interest rate | 1.50% | |
Derivative fair value, net of tax | $ 2,400,000 | |
2028 Term Loan [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 500,000,000 |
Financial Derivatives - Summary
Financial Derivatives - Summary of Combined Fair Values, Net of Tax of Interest Rate Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 | |
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Derivative [Line Items] | |||
Derivative fair value, net of tax | [1] | $ (7.7) | $ (15) |
[1] | Assets are included in the consolidated balance sheets in prepaid expenses and other current assets, while liabilities are included in accrued expenses. |
Financial Derivatives - Summa_2
Financial Derivatives - Summary of Amounts of Gain (Loss) on Interest Rate Derivative Instruments Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative [Line Items] | |||
Gain (loss) on interest rate derivative instruments recognized in other comprehensive income | $ 7.3 | $ (13.4) | $ (1.6) |
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Gain (loss) on interest rate derivative instruments recognized in other comprehensive income | $ 7.3 | $ (13.4) | $ (1.6) |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summary of Unaudited Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Net sales | $ 1,875.4 | $ 1,872.1 | $ 1,318 | $ 1,576.5 | $ 1,755 | $ 1,549.3 | $ 1,197.1 | $ 1,415.3 | $ 6,642 | $ 5,916.7 | $ 5,996.1 | |||
% of fiscal year's net sales | 28.20% | 28.20% | 19.80% | 23.70% | 29.70% | 26.20% | 20.20% | 23.90% | ||||||
Gross profit | $ 507.8 | $ 517.4 | $ 332.8 | $ 399.7 | $ 441.3 | $ 368.7 | $ 270.4 | $ 340.1 | 1,757.7 | 1,420.5 | 1,427.6 | |||
% of fiscal year's gross profit | 28.90% | 29.40% | 18.90% | 22.70% | 31.10% | 26.00% | 19.00% | 23.90% | ||||||
Net income (loss) from continuing operations | $ 104.5 | $ 79.8 | $ (10.5) | $ 47.4 | $ 68.2 | $ (4.1) | $ (121.4) | $ (24) | 221.2 | (81.3) | (18.9) | |||
Net income (loss) | 104.8 | 76.5 | (6.3) | (220.5) | 71.9 | (6.8) | (122.6) | (23.4) | (45.5) | (80.9) | (10.6) | |||
Net income (loss) attributable to common stockholders | $ 98.8 | $ 70.5 | $ (12.3) | $ (226.5) | $ 65.9 | $ (12.8) | $ (128.6) | $ (29.4) | $ (69.5) | $ (104.9) | $ (34.6) | |||
Net income (loss) from continuing operations per share - basic | $ 1.23 | $ 0.93 | $ (0.24) | $ 0.60 | $ 0.79 | $ (0.14) | $ (1.85) | $ (0.44) | $ 2.83 | [1] | $ (1.53) | [1] | $ (0.63) | [1] |
Net income (loss) per share - basic | 1.24 | 0.89 | (0.18) | (3.27) | 0.84 | (0.18) | (1.87) | (0.43) | (1) | [1] | (1.52) | [1] | (0.51) | [1] |
Net income (loss) from continuing operations per share - diluted | 1.21 | 0.91 | (0.24) | 0.59 | 0.78 | (0.14) | (1.85) | (0.44) | 2.75 | [1] | (1.53) | [1] | (0.63) | [1] |
Net income (loss) per share - diluted | $ 1.22 | $ 0.87 | $ (0.18) | $ (3.24) | $ 0.83 | $ (0.18) | $ (1.87) | $ (0.43) | $ (0.57) | [1] | $ (1.52) | [1] | $ (0.51) | [1] |
[1] | See Note 5 for detailed calculations and further discussion. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Midway Sales & Distributing, Inc. [Member] $ in Millions | Nov. 01, 2021USD ($)Location |
Subsequent Event [Line Items] | |
Number of business locations acquired | Location | 10 |
Business acquisition, sales reported by acquired entity for last annual period | $ | $ 130 |