Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Leases Leases
Beginning October 1, 2019, we identify contracts which are, or contain, leases where a contract allows us the right to control identified property or equipment for a period of time in return for consideration. Our leases are typically for office space or facilities, as well as some equipment leases. Where contracts include both lease and non-lease components, we do not typically separate the non-lease components in our accounting.
At the inception of a lease, we recognize a liability for future minimum lease payments based upon the present value of those payments.
In identifying our future minimum lease payments, we do not include variable lease costs, such as those for maintenance or utilities. These are recorded as lease expenses in the period in which they are incurred.
In identifying future lease payments, we do not include short-term leases, identified as those with an initial term of twelve months or less.
Lease options are included within our lease liability only where it is reasonably certain that we will utilize those periods of the lease and incur the related costs.
In calculating the fair value of our lease liability, we utilize an estimate of our collateralized incremental borrowing rate. This estimate is based upon publicly-available information adjusted for company-specific, country-specific and lease-specific factors. The weighted average incremental borrowing rate utilized at March 31, 2020, is 3.7%.
Over the course of a lease, the lease liability is reduced as scheduled lease payments are made and increased as the implied interest charges are added.
Our right-of-use asset is based upon the lease liability at the contract inception but is adjusted over the life of the lease by lease prepayments, additional costs or lease incentives. The right-of-use asset is amortized on a straight-line basis over the lease term, offset by the interest accretion recorded on the lease liability.
Lease expense is recorded within our consolidated statements of operations based upon the nature of the assets. Where assets are used to directly serve our customers, such as facilities dedicated to customer contracts, lease costs are recorded in "cost of revenue." Facilities and assets which serve management and support functions are expensed through "selling, general and administrative expenses." Costs recorded in the three and six months ended March 31, 2020, are summarized below.
(dollars in thousands) Three Months Ended March 31, 2020 Six Months Ended March 31, 2020
Operating lease cost $ 23,437    $ 48,687   
Short-term lease cost 1,454    3,564   
Variable lease cost 1,954    5,288   
Total operating lease costs $ 26,845    $ 57,539   

Future minimum lease payments for noncancelable operating leases as of March 31, 2020 are shown below.
(dollars in thousands) Office space Equipment Total
For the years ended September 30,
Remainder of 2020 $ 42,136    $ 3,832    $ 45,968   
2021 60,372    6,295    66,667   
2022 39,752    2,353    42,105   
2023 26,490    98    26,588   
2024 11,193    40    11,233   
Thereafter 6,989    —    6,989   
Total minimum lease payments $ 186,932    $ 12,618    $ 199,550   
Less imputed interest (11,183)   (372)   (11,555)  
Total lease liabilities $ 175,749    $ 12,246    $ 187,995   
Our weighted average remaining lease term at March 31, 2020 is 3.0 years.
For the six months ended March 31, 2020, we made cash payments of $55.9 million for amounts included in our lease liabilities. New or amended leases resulted in additional right-of-use assets of $24.7 million.