Leases

9 Months Ended

Jun. 30, 2020

Our leases consist primarily of office and manufacturing space, construction equipment and office equipment. All of our future lease obligations are related to non-cancelable operating leases. The most significant portion of our lease portfolio relates to leases of office and manufacturing facilities in Canada which we no longer occupy. We currently sublease the majority of these Canadian facilities. The following table provides a summary of lease cost components for the three and nine months ended June 30, 2020 (in thousands):



Lease Cost	Three months ended June 30, 2020			Nine months ended June 30, 2020
Operating lease cost	$	571		$	1,779
Less: sublease income	(156		)	(393		)
Variable lease cost⁽¹⁾	86			265
Short-term lease cost⁽²⁾	148			496
Total lease cost	$	649		$	2,147

⁽¹⁾ Variable lease cost represents common area maintenance charges related to our Canadian office space leases.

⁽²⁾ Short-term lease cost includes leases and rentals with initial terms of one year or less.

We recognize operating lease assets and operating lease liabilities representing the present value of the remaining lease payments for leases with initial terms greater than twelve months. Leases with initial terms of twelve months or less are not recorded in our Condensed Consolidated Balance Sheets. Our operating lease assets have been reduced by a lease accrual of $0.6 million related to certain unused facility leases in Canada. The following table provides a summary of the operating lease assets and operating lease liabilities included in our Condensed Consolidated Balance Sheets as of June 30, 2020 (in thousands):



Operating Leases	June 30, 2020
Assets:
Operating lease assets, net	$	5,542

Liabilities:
Current operating lease liabilities	2,306
Long-term operating lease liabilities	3,870
Total lease liabilities	$	6,176

The following table provides the maturities of our operating lease liabilities as of June 30, 2020 (in thousands):



	Operating Leases
Remainder of 2020	$	773
2021	2,414
2022	2,140
2023	1,109
2024	85
Thereafter	—
Total future minimum lease payments	6,521
Less: present value discount (imputed interest)	(345		)
Present value of lease liabilities	$	6,176

The weighted average discount rate as of June 30, 2020 was 4.22%. The weighted average remaining lease term was 2.7 years at June 30, 2020.