Leases

3 Months Ended

Dec. 31, 2020

LeasesLease 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 equipment which serve management and support functions are expensed through "selling, general and administrative expenses." Costs recorded in the three months ended December 31, 2020 and 2019, are summarized below.


	Three Months Ended December 31,
(in thousands)	2020		2019
Operating lease cost	$	27,734	$	25,250
Short-term lease cost	1,889		2,110
Variable lease cost	3,015		3,334
Total operating lease costs	$	32,638	$	30,694

Future minimum lease payments for noncancelable operating leases as of December 31, 2020, are shown below.


(in thousands)	Office space		Equipment		Total
For the years ended September 30
Remainder of 2021	$	52,375	$	6,661	$	59,036
2022	56,388		3,701		60,089
2023	31,731		537		32,268
2024	14,715		54		14,769
2025	9,788		9		9,797
Thereafter	2,219		—		2,219
Total minimum lease payments	$	167,216	$	10,962	$	178,178
Less: imputed interest	(9,748)		(270)		(10,018)
Total lease liabilities	$	157,468	$	10,692	$	168,160

Other information related to leases was as follows:


	December 31, 2020
Weighted average remaining lease term (in years)	2.8
Weighted average incremental borrowing rate	3.81	%

Supplemental cash flow information related to leases was as follows:


	Three Months Ended December 31,
(in thousands)	2020		2019
Cash payments included in the measurement of lease liabilities	$	28,513	$	28,100
Operating lease liabilities arising from new or remeasured right-of-use assets	9,004		17,300