We lease certain of our real estate, machinery, equipment, and vehicles under non-cancelable operating lease agreements.

We recognize expenses under our operating lease assets and liabilities at the commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit interest rate. We use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Our lease agreements do not require material variable lease payments, residual value guarantees, or restrictive covenants. For operating leases, we recognize expense on a straight-line basis over the lease term. Tenant improvement allowances are recorded as an offsetting adjustment included in our calculation of the respective right-of-use asset.

Many of our leases include renewal options that enable us to extend the lease term. The execution of those renewal options is at our sole discretion and are reflected in the lease term when they are reasonably certain to be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term.

The amounts of assets and liabilities related to our operating and financing leases as of October 31, 2020 were as follows (in thousands):

	Balance Sheet Caption	October 31, 2020
Operating Leases
Right-of-use assets		$	7,074
Accumulated amortization			(1,921	)
Right-of-use assets, net	Other assets	$	5,153

Current liabilities	Accrued expenses and deferred revenue	$	1,284
Non-current liabilities	Other non-current liabilities		4,055
Total operating lease liabilities		$	5,339
Finance Leases
Right-of-use assets		$	40,986
Accumulated depreciation			(3,181	)
Right-of-use assets, net	Property, plant, and equipment, net	$	37,805

Current liabilities	Accrued expenses and deferred revenue		1,047
Non-current liabilities	Finance lease payable, net of current portion		39,343
Total finance lease liabilities		$	40,390

For the three months ended October 31, 2020, we recorded $444,000 of operating lease costs, of which $49,000 related to short-term leases and not recorded as right-of-use assets. We recorded $525,000 of financing lease amortization and $507,000 of financing lease interest expense for the three months ended October 31, 2020. For the six months ended October 31, 2020, we recorded $918,000 of operating lease costs, of which $130,000 related to short-term leases and not recorded as right-of-use assets. We recorded $1.0 million of financing lease amortization and $1.0 million of financing lease interest expense for the six months ended October 31, 2020. As of October 31, 2020, our weighted average lease term and weighted average discount rate for our operating leases was 4.4 years and 4.6%, respectively. As of October 31, 2020, our weighted average lease term and weighted average discount rate for our financing leases were 18.0 years and 5.0%, respectively, and consisted primarily of our national logistics facility located in Columbia, Missouri. The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight-line basis over the life of the lease.

With the completion of the Separation, we entered into a sublease for 59.0% of our national logistics facility under the same terms as the master lease. For the six months ended October 31, 2020, we have recorded $303,000 of income related to this sublease agreement, which is recorded in other income/(expense) in our condensed consolidated statements of income/(loss) and comprehensive income/(loss).

Future lease payments for all our operating and finance leases for succeeding fiscal years is as follows (in thousands):

	Operating			Financing			Total
2021	$	803		$	1,521		$	2,324
2022		1,488			3,056			4,544
2023		1,496			3,071			4,567
2024		1,488			3,125			4,613
2025		268			3,180			3,448
Thereafter		679			48,784			49,463
Total future lease payments		6,222			62,737			68,959
Less amounts representing interest		(883	)		(22,347	)		(23,230	)
Present value of lease payments		5,339			40,390			45,729
Less current maturities of lease liabilities		(1,284	)		(1,047	)		(2,331	)
Long-term maturities of lease liabilities	$	4,055		$	39,343		$	43,398

For the three and six months ended October 31, 2020, the cash paid for amounts included in the measurement of the liabilities and the operating cash flows was $1.1 million and $2.5 million, respectively.