We have entered into a number of facility leases to support our research and development activities, sales operations, and other corporate and administrative functions in North America, Europe, and Asia, which qualify as operating leases under GAAP. We also have a limited number of equipment leases that also qualify as operating leases. We determine if contracts with vendors represent a lease or have a lease component under GAAP at contract inception. As part of our acquisition of Voicebox Technologies (“Voicebox”), we assumed certain leases for various equipment, which we have accounted for as finance leases. Our leases have remaining terms ranging from less than one year to eight years. Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.

Operating lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. As our leases generally do not provide an implicit rate, we use an estimated incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular location and currency environment.

The following table presents certain information related to lease term and incremental borrowing rates for leases as of March 31, 2020:

	March 31, 2020
Weighted-average remaining lease term (in months):
Operating leases		55.8
Finance leases		8.0
Weighted-average discount rate:
Operating leases		8.0	%
Finance leases		8.4	%

The following table presents the lease-related assets and liabilities reported in the consolidated balance sheet as of March 31, 2020 (in thousands):

	Classification	March 31, 2020
Assets
Operating lease assets	Operating lease right of use assets	$	18,593
Finance lease assets	Property and equipment, net		220
Total lease assets		$	18,813

Liabilities
Current
Operating	Short-term operating lease liabilities	$	5,270
Finance	Accrued expenses and other current liabilities		106
Noncurrent
Operating	Long-term operating lease liabilities	$	15,669
Finance	Other liabilities		—
Total lease liability		$	21,045

Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. For operating leases, costs are included within research and development, marketing and selling, and general and administrative lines on the consolidated statements of operations. For financing leases, amortization of the finance right-of-use assets is included within research and development, marketing and selling, and general and administrative lines on the consolidated statements of operations, and interest expense is included within the other income (expense), net.

The following table presents lease expense for the three and six months ended March 31, 2020 (in thousands):

	Three months ended March 31, 2020			Six months ended March 31, 2020
Finance lease costs:
Amortization of right-of-use asset	$	33		$	69
Interest on lease liability		2			2
Operating lease cost		1,960			3,850
Short-term lease cost		-			-
Variable lease cost		365			674
Sublease income		(55	)		(110	)
Total lease cost	$	2,305		$	4,485

For operating leases, the related cash payments are included in the operating cash flows on the consolidated statements of cash flows. For the three and six months ended March 31, 2020, cash payments related to operating leases were $1.9 million and $3.6 million, respectively. For financing leases, the related cash payments for the principal portion of the lease liability are included in the financing cash flows on the consolidated statement of cash flows and the related cash payments for the interest portion of the lease liability are included within the operating section of the consolidated statement of cash flows. For the three months ended March 31, 2020, cash payments related to financing leases were immaterial. For the six months ended March 31, 2020, cash payments related to financing leases were $0.1 million, of which an immaterial amount related to the interest portion of the lease liability.

The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases with terms of more than one year to the total lease liabilities recognized on the consolidated balance sheets as of March 31, 2020 (in thousands):

Year Ending September 30,	Operating Leases			Financing Leases
2020 (excluding six months ended March 31, 2020)	$	3,581		$	91
2021		6,065			20
2022		5,078			—
2023		3,624			—
2024		3,225			—
Thereafter		3,716			—
Total future minimum lease payments	$	25,289		$	111
Less effects of discounting		(4,350	)		(5	)
Total lease liabilities	$	20,939		$	106
Reported as of March 31, 2020
Short-term lease liabilities	$	5,270		$	106
Long-term lease liabilities		15,669			—
Total lease liabilities	$	20,939		$	106

The future minimum lease commitments under non-cancelable leases at September 30, 2019 were as follows (in thousands):

Year Ending September 30,
2020	$	6,323
2021		5,421
2022		4,493
2023		3,237
2024		2,922
Thereafter		4,039
Total	$	26,435