Leases

12 Months Ended

Sep. 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 on our consolidated balance sheet for leases with an initial term greater than 12 months based on the present value of the future minimum lease payments over the lease term using our estimated incremental borrowing rate. Minimum lease payments for leases with an initial term of 12 months or less are not recorded on our consolidated balance sheet. As of September 30, 2020, we had 31 leases that expire at various dates through 2030, the weighted average remaining lease term was 8.9 years and the determination of the present value of the remaining lease payments utilized a weighted average discount rate of 3.1%.

For the fiscal year ended September 30, 2020, operating lease costs for leases with an initial lease term greater than 12 months totaled $6,366, including variable lease payments of $660 and non-cash straight-line rent amounts of $154. Lease expense for leases with an initial term of 12 months or less was $68 for the fiscal year ended September 30, 2020. The cash portion for all of our operating leases totaled $6,280 for the fiscal year ended September 30, 2020. Lease expense recognized under the standard in effect prior to our adoption of ASU 2016-02 for the fiscal years ended September 30, 2019 and 2018 totaled $6,370 and $5,364.

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


2021	$	5,480
2022	5,555
2023	4,926
2024	4,428
2025	4,090
Thereafter	17,309
Total lease payments (1)	41,788
Less: imputed interest	(5,351)
Present value of operating lease liabilities	36,437
Less: current portion of operating lease liabilities	(4,407)
Operating lease liabilities, net of current portion	$	32,030

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

Some of the foregoing leases are with related parties. As of September 30, 2020, $37,284 of total lease payments and $5,198 of imputed interest are for our principal executive offices, which are leased from an affiliate of ABP Trust pursuant to a lease agreement that expires in 2030.