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Leases | 3 Months Ended
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Mar. 31, 2020
Leases [Abstract] |
Leases | Leases We lease office facilities for use in our operations, as well as transportation and other equipment. Most of our leases are non-cancelable operating lease agreements and they expire from one year to eight years. Some of these leases include options to extend for up to 10 years. We had no finance leases and no related party lease agreements as of March 31, 2020. Operating lease costs were approximately $2.6 million for the three months ended March 31, 2020, and $2.1 million for the three months ended March 31, 2019. The components of operating lease expense were as follows:
Lease Costs |  | Financial Statement Classification |  | Three Months Ended March 31, |  |  |
|  |  |  | 2020 |  | 2019 |
Operating lease cost |  | Selling, general and administrative expenses |  | $ | 1,666 |  |  | $ | 1,370 |  |
Short-term lease cost |  | Selling, general and administrative expenses |  | 574 |  |  | 570 |  |
Variable lease cost |  | Selling, general and administrative expenses |  | 394 |  |  | 163 |  |
Net lease cost |  |  |  | $ | 2,634 |  |  | $ | 2,103 |  |
As of March 31, 2020, Right-of-use ("ROU") lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheet as follows:
|  | March 31, 2020 |  | December 31, 2019
Assets: |  |  |  |
Operating lease right-of-use assets |  | $ | 17,992 |  |  | $ | 18,992 |
Liabilities: |  |  |  |
Operating leases, short-term |  | 6,373 |  |  | 6,387 |
Operating leases, long-term |  | 15,548 |  |  | 16,822 |
Total lease liabilities |  | $ | 21,921 |  |  | $ | 23,209 |
Supplemental information related to leases was as follows:
Other Information |  | Three Months Ended March 31, |  |
|  | 2020 |  | 2019
Cash flows: |  |  |  |
Cash paid amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash outflows from operating leases |  | $ | 1,873 |  |  | $ | 1,530 |
Right-of-use assets obtained in exchange for lease obligations (non-cash): |  |  |  |
Operating leases |  | $ | 457 |  |  | $ | 431 |
Lease term and discount rate: |  |  |  |
Weighted average remaining lease term (years) |  | 4 |  | 5
Weighted average discount rate |  | 4.00 | % |  | 4.00 | %
As of March 31, 2020, maturities of lease liabilities were as follows:
Year ending December 31, |  | Amount
2020 (Remaining 2020) |  | $ | 5,845 |
2021 |  | 6,340 |
2022 |  | 4,021 |
2023 |  | 2,989 |
2024 |  | 2,545 |
Thereafter |  | 2,133 |
Total lease payments |  | 23,873 |
Less: Interest |  | (1,952) |
Present value of operating lease liabilities |  | $ | 21,921 |
Rental Income from third parties We own office buildings in Bangor, Falmouth and Yarmouth, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; and Moraine, Ohio. We lease space in some of these buildings to third-party tenants. The property we lease to others under operating leases consists primarily of specific facilities where one tenant obtains substantially all of the economic benefit from the asset and has the right to direct the use of the asset. These non-cancelable leases expire between 2020 and 2025, and some have options to extend the lease for up to five years. We determine if an arrangement is a lease at inception. None of our leases allow the lessee to purchase the leased asset. Rental income from third-party tenants for the three months ended March 31, 2020, totaled $274,000 and for the three months ended March 31, 2019, totaled $284,000. Rental income is included in Hardware and other revenue on the condensed consolidated statements of income. Future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31, |  | Amount
2020 (Remaining 2020) |  | $ | 1,009 |
2021 |  | 1,372 |
2022 |  | 1,402 |
2023 |  | 1,432 |
2024 |  | 1,462 |
Thereafter |  | 857 |
Total |  | $ | 7,534 |
As of March 31, 2020, we had no additional significant operating or finance leases that had not yet commenced.
Leases | Leases We lease office facilities for use in our operations, as well as transportation and other equipment. Most of our leases are non-cancelable operating lease agreements and they expire from one year to eight years. Some of these leases include options to extend for up to 10 years. We had no finance leases and no related party lease agreements as of March 31, 2020. Operating lease costs were approximately $2.6 million for the three months ended March 31, 2020, and $2.1 million for the three months ended March 31, 2019. The components of operating lease expense were as follows:
Lease Costs |  | Financial Statement Classification |  | Three Months Ended March 31, |  |  |
|  |  |  | 2020 |  | 2019 |
Operating lease cost |  | Selling, general and administrative expenses |  | $ | 1,666 |  |  | $ | 1,370 |  |
Short-term lease cost |  | Selling, general and administrative expenses |  | 574 |  |  | 570 |  |
Variable lease cost |  | Selling, general and administrative expenses |  | 394 |  |  | 163 |  |
Net lease cost |  |  |  | $ | 2,634 |  |  | $ | 2,103 |  |
As of March 31, 2020, Right-of-use ("ROU") lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheet as follows:
|  | March 31, 2020 |  | December 31, 2019
Assets: |  |  |  |
Operating lease right-of-use assets |  | $ | 17,992 |  |  | $ | 18,992 |
Liabilities: |  |  |  |
Operating leases, short-term |  | 6,373 |  |  | 6,387 |
Operating leases, long-term |  | 15,548 |  |  | 16,822 |
Total lease liabilities |  | $ | 21,921 |  |  | $ | 23,209 |
Supplemental information related to leases was as follows:
Other Information |  | Three Months Ended March 31, |  |
|  | 2020 |  | 2019
Cash flows: |  |  |  |
Cash paid amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash outflows from operating leases |  | $ | 1,873 |  |  | $ | 1,530 |
Right-of-use assets obtained in exchange for lease obligations (non-cash): |  |  |  |
Operating leases |  | $ | 457 |  |  | $ | 431 |
Lease term and discount rate: |  |  |  |
Weighted average remaining lease term (years) |  | 4 |  | 5
Weighted average discount rate |  | 4.00 | % |  | 4.00 | %
As of March 31, 2020, maturities of lease liabilities were as follows:
Year ending December 31, |  | Amount
2020 (Remaining 2020) |  | $ | 5,845 |
2021 |  | 6,340 |
2022 |  | 4,021 |
2023 |  | 2,989 |
2024 |  | 2,545 |
Thereafter |  | 2,133 |
Total lease payments |  | 23,873 |
Less: Interest |  | (1,952) |
Present value of operating lease liabilities |  | $ | 21,921 |
Rental Income from third parties We own office buildings in Bangor, Falmouth and Yarmouth, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; and Moraine, Ohio. We lease space in some of these buildings to third-party tenants. The property we lease to others under operating leases consists primarily of specific facilities where one tenant obtains substantially all of the economic benefit from the asset and has the right to direct the use of the asset. These non-cancelable leases expire between 2020 and 2025, and some have options to extend the lease for up to five years. We determine if an arrangement is a lease at inception. None of our leases allow the lessee to purchase the leased asset. Rental income from third-party tenants for the three months ended March 31, 2020, totaled $274,000 and for the three months ended March 31, 2019, totaled $284,000. Rental income is included in Hardware and other revenue on the condensed consolidated statements of income. Future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31, |  | Amount
2020 (Remaining 2020) |  | $ | 1,009 |
2021 |  | 1,372 |
2022 |  | 1,402 |
2023 |  | 1,432 |
2024 |  | 1,462 |
Thereafter |  | 857 |
Total |  | $ | 7,534 |
As of March 31, 2020, we had no additional significant operating or finance leases that had not yet commenced.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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