LEASES

9 Months Ended

Jun. 30, 2020

Effective 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 six years as of June 30, 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 June 30, 2020 was $2,221, which included $1,868 related to operating lease cost and $353 related to short-term and variable lease costs. Total lease cost for the Company for the nine months ended June 30, 2020 was $7,027, which included $5,754 related to operating lease cost and $1,273 related to short-term and variable lease costs. The weighted average discount rate for operating leases as of June 30, 2020 was 3.06%, 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	$	1,865
2021	6,709
2022	6,234
2023	5,263
2024	4,179
2025 and future years	11,626
Total future lease payments	35,876
Less: Imputed interest	3,197
Operating lease liability	32,679
Less: Current portion of operating lease liability	6,313
Long-term portion of operating lease liability recorded in Other long-term liabilities	$	26,366

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