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Leases
 6 Months Ended
Jun. 30, 2021
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 with original maturities between one to seven years from the execution date. Some of these leases include options to extend for up to 10 years. We have no finance leases and no related party lease agreements as of June 30, 2021. Operating lease costs were approximately $5.6 million and $8.2 million for the three and six months ended June 30, 2021, respectively, and $2.5 million and $5.1 million for the three and six months ended June 30, 2020, respectively.
The components of operating lease expense were as follows:
Lease CostsFinancial Statement ClassificationThree Months Ended June 30,Six Months Ended June 30,
2021202020212020
Operating lease costSelling, general and administrative expenses$4,388 $1,606 $6,110 $3,272 
Short-term lease costSelling, general and administrative expenses731 447 1,212 1,021 
Variable lease costSelling, general and administrative expenses496 454 927 848 
Net lease cost$5,615 $2,507 $8,249 $5,141 
Right-of-use lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheets as follows:
June 30, 2021December 31, 2020
Assets:
Operating lease right-of-use assets$28,230 $18,734 
Liabilities:
Operating leases, short-term9,666 5,904 
Operating leases, long-term22,118 16,279 
Total lease liabilities$31,784 $22,183 
Supplemental information related to leases is as follows:
Other InformationSix Months Ended June 30,
20212020
Cash flows:
Cash amounts paid included in the measurement of lease liabilities:
Operating cash outflows from operating leases$6,203 $3,379 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$2,961 $510 
Lease term and discount rate:
Weighted average remaining lease term (years)3.854
Weighted average discount rate2.51 %4.00 %
As of June 30, 2021, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2021 (Remaining 2021)$6,060 
20229,161 
20236,570 
20245,225 
20253,410 
Thereafter2,849 
Total lease payments33,275 
Less: Interest(1,491)
Present value of operating lease liabilities$31,784 
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 2021 and 2025, and some have options to extend the lease for up to seven 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 and six months ended June 30, 2021, totaled $296,000 and $590,000 respectively, and for the three and six months ended June 30, 2020, totaled $292,000 and $566,000, respectively. Rental income is included in hardware and other revenue in the condensed consolidated statements of income. As of June 30, 2021, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2021 (Remaining 2021)$713 
20221,449 
20231,479 
20241,510 
2025966 
Thereafter— 
Total $6,117 
As of June 30, 2021, 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 with original maturities between one to seven years from the execution date. Some of these leases include options to extend for up to 10 years. We have no finance leases and no related party lease agreements as of June 30, 2021. Operating lease costs were approximately $5.6 million and $8.2 million for the three and six months ended June 30, 2021, respectively, and $2.5 million and $5.1 million for the three and six months ended June 30, 2020, respectively.
The components of operating lease expense were as follows:
Lease CostsFinancial Statement ClassificationThree Months Ended June 30,Six Months Ended June 30,
2021202020212020
Operating lease costSelling, general and administrative expenses$4,388 $1,606 $6,110 $3,272 
Short-term lease costSelling, general and administrative expenses731 447 1,212 1,021 
Variable lease costSelling, general and administrative expenses496 454 927 848 
Net lease cost$5,615 $2,507 $8,249 $5,141 
Right-of-use lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheets as follows:
June 30, 2021December 31, 2020
Assets:
Operating lease right-of-use assets$28,230 $18,734 
Liabilities:
Operating leases, short-term9,666 5,904 
Operating leases, long-term22,118 16,279 
Total lease liabilities$31,784 $22,183 
Supplemental information related to leases is as follows:
Other InformationSix Months Ended June 30,
20212020
Cash flows:
Cash amounts paid included in the measurement of lease liabilities:
Operating cash outflows from operating leases$6,203 $3,379 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$2,961 $510 
Lease term and discount rate:
Weighted average remaining lease term (years)3.854
Weighted average discount rate2.51 %4.00 %
As of June 30, 2021, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2021 (Remaining 2021)$6,060 
20229,161 
20236,570 
20245,225 
20253,410 
Thereafter2,849 
Total lease payments33,275 
Less: Interest(1,491)
Present value of operating lease liabilities$31,784 
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 2021 and 2025, and some have options to extend the lease for up to seven 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 and six months ended June 30, 2021, totaled $296,000 and $590,000 respectively, and for the three and six months ended June 30, 2020, totaled $292,000 and $566,000, respectively. Rental income is included in hardware and other revenue in the condensed consolidated statements of income. As of June 30, 2021, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2021 (Remaining 2021)$713 
20221,449 
20231,479 
20241,510 
2025966 
Thereafter— 
Total $6,117 
As of June 30, 2021, we had no additional significant operating or finance leases that had not yet commenced.