Leases

9 Months Ended

Jun. 30, 2020

We enter into operating leases, as the lessee, for office space and determine if an arrangement is a lease at inception of the arrangement. Operating lease liabilities and right of use assets are recognized based on the present value of the future minimum lease payments over the lease term using our estimated incremental borrowing rate. Operating lease costs totaled $1,568 and $4,794 for the three and nine months ended June 30, 2020, respectively, including variable lease payments of $143 and $504, respectively, and straight-line rent amounts of $52 and $124, respectively. Minimum lease payments for leases with an initial term of twelve months or less are not recorded on our condensed consolidated balance sheet. Lease expense for leases with an initial term of twelve months or less was $11 and $44 for the three and nine months ended June 30, 2020, respectively. As of June 30, 2020, our operating leases expire on various dates through 2030, the weighted average remaining lease term was 9.1 years and the determination of the present value of the remaining lease payments utilized a weighted average discount rate of 3.1%.

The following table presents the undiscounted cash flows on an annual basis for our operating lease liabilities as of June 30, 2020:



2020	$	1,349
2021	5,480
2022	5,555
2023	4,926
2024	4,428
Thereafter	21,400
Total lease payments⁽¹⁾	43,138
Less: imputed interest	(5,639		)
Present value of operating lease liabilities	37,499
Less: current portion of operating lease liabilities	(4,343		)
Operating lease liabilities, net of current portion	$	33,156

(1)

Excludes $771 of lease payments for signed leases that have not yet commenced.