LEASES

6 Months Ended

Mar. 31, 2020

LEASESEffective October 1, 2019, the Company adopted the new lease accounting guidance which requires the recognition of a right of use asset and a corresponding lease liability for operating leases. As part of the adoption, the Company elected to apply provisions of the guidance to operating leases with terms of more than twelve months for all lease classes except for real estate leases for which the guidance is applied to all leases. Additionally, the Company elected to account for non-lease components and lease components together as a single lease component for all asset classes. The Company’s lease transactions primarily consist of leases for facilities, equipment and vehicles under operating leases. The Company does not have any material finance leases. The weighted average remaining lease term for operating leases included in the lease liability was approximately seven years, as of March 31, 2020. Certain of the Company’s leases have an option to extend the lease term and the renewal period is included in determining the lease term for leases where the renewal option is reasonably certain to be exercised.

Total lease cost for the Company for the three months ended March 31, 2020 was $2,320, which included $1,903 related to operating lease cost and $417 related to short-term and variable lease costs. Total lease cost for the Company for the six months ended March 31, 2020 was $4,806, which included $3,886 related to operating lease cost and $920 related to short-term and variable lease costs. The right of use asset related to operating leases as of March 31, 2020 was $29,715 and was recorded in Other long-term assets. As of March 31, 2020, the current portion of the lease liability for operating leases was $5,498 and was included in Accrued expenses, income taxes payable and other current liabilities, and the long-term portion was $25,390 and was included in Other long-term liabilities. The weighted average discount rate for operating leases as of March 31, 2020 was 3.02%, and was determined based on the secured incremental borrowing rate of the Company and its subsidiaries as the implicit rate is not readily determinable.

Future maturities of operating lease liabilities for the years ended September 30 are as follows:


Fiscal Year	Amount
Remainder of 2020	$	3,356
2021	5,538
2022	5,185
2023	4,728
2024	4,068
2025 and future years	11,544
Total future lease payments	34,419
Less: Imputed interest	3,531
Operating lease liability	30,888
Less: Current portion of operating lease liability	5,498
Long-term portion of operating lease liability	$	25,390

As of September 30, 2019, minimum lease payments under operating leases with noncancelable terms in excess of one are as follows:


Fiscal Year	Amount
2020	$	6,984
2021	4,941
2022	4,291
2023	4,122
2024	3,710
Thereafter	12,010
Total future minimum lease payments	$	36,058