Leases

The Company has operating leases for the use of real estate, machinery, and office equipment. The majority of our leases have a lease term of 2 to 5 years; however, we have certain leases with longer terms of up to 30 years. Many of our leases include options to extend the lease for an additional period.

The lease term for all of the Company’s leases includes the non-cancellable period of the lease, plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise, or an option to extend the lease controlled by the lessor that is considered likely to be exercised.

Payments due under the lease contracts include fixed payments plus, for some of our leases, variable payments. Variable payments are typically operating costs associated with the underlying asset and are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Our leases do not contain residual value guarantees.

The Company has elected to combine lease and non-lease components as a single component and not to recognize leases on the balance sheet with an initial term of one year or less.

The interest rate implicit in lease contracts is typically not readily determinable, and as such the Company utilizes the incremental borrowing rate to calculate lease liabilities, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

The components of lease cost for the quarter ended are as follows:



	Three Months Ended June 30, 2019
Operating lease cost	$	819,854
Short-term lease cost	274,156
Variable lease cost	135,613
Sublease income	—
Total lease cost	$	1,229,623

Amounts reported in the consolidated balance sheets for leases where we are the lessee as of the quarter ended June 30, 2019 were as follows:



	June 30, 2019
Operating leases
Operating lease right-of-use assets	$	10,071,405
Operating lease liabilities	10,558,383

Weighted-average remaining lease term	12.08 years
Operating leases

Weighted-average discount rate	4.51		%
Operating leases

Maturities of lease liabilities under non-cancellable leases where we are the lessee as of the quarter ended June 30, 2019 are as follows:



	Operating Leases
2020 (excluding the three months ended June 30, 2019)	(2,267,538	)
2021	(2,122,870	)
2022	(1,621,902	)
2023	(1,268,783	)
2024	(691,886	)
2025	(457,798	)
Thereafter	(5,809,603	)
Total undiscounted lease payments	(14,240,380	)
Less: Interest	(3,023,181	)
Less: Discount	(658,816	)
Total lease liabilities	(10,558,383	)

At March 31, 2019, future minimum annual lease payments (foreign currency amounts translated using applicable March 31, 2019 exchange rates) are as follows:



Year ended March 31,
2020	3,133,000
2021	2,115,000
2022	1,625,000
2023	1,241,000
2024	692,000
Thereafter	6,267,000
Total minimum lease payments	15,073,000