Leases

12 Months Ended

Sep. 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 year ended September 30, 2020 (in thousands):


Lease Cost	2020
Operating lease cost	$	2,389
Less: sublease income	(555)
Variable lease cost(1)	351
Short-term lease cost(2)	677
Total lease cost	$	2,862

(1) Variable lease cost represents common area maintenance charges related to our Canadian office space lease.
(2) Short-term lease cost includes leases and rentals with initial terms of one year or less.

For the years ended September 30, 2019 and 2018, rent expense related to operating leases was $3.5 million and $3.4 million; however, these amounts did not include rent expense related to leases and rentals with initial terms of one year or less, which are included in short-term cost in the table above. For the years ended September 30, 2019 and 2018, sublease income from third parties was $1.3 million and $1.5 million; however, these amounts included common area maintenance charges, which are included in variable lease cost in the table above.

In Fiscal 2019, we recorded additional lease expense of $0.7 million related to certain facility leases in Canada that are no longer utilized in our operations. In Fiscal 2018, we incurred approximately $0.8 million due to anticipated losses on the sublet of a Canadian facility we exited in a prior period.

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 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 Consolidated Balance Sheets as of September 30, 2020 (in thousands):


Operating Leases	September 30, 2020
Assets:
Operating lease assets, net	$	5,217

Liabilities:
Current operating lease liabilities	2,352
Long-term operating lease liabilities	3,434
Total lease liabilities	$	5,786

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


	Operating Leases
2021	$	2,581
2022	2,231
2023	1,187
2024	85
2025	—
Thereafter	—
Total future minimum lease payments	$	6,084
Less: present value discount (imputed interest)	(298)
Present value of lease liabilities	$	5,786

The weighted average discount rate as of September 30, 2020 was 4.19%. The weighted average remaining lease term was 2.55 years at September 30, 2020.