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Leases
 6 Months Ended
Jun. 30, 2022
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 10 years from the execution date. Some of these leases include options to extend for up to five years. We have no finance leases and no related party lease agreements as of June 30, 2022. Right-of-use lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheets.
The components of operating lease expense were as follows:
Lease CostsThree Months Ended June 30,Six Months Ended June 30,
2022202120222021
Operating lease cost$2,586 $4,388 $6,008 $6,110 
Short-term lease cost488 731 994 1,212 
Variable lease cost204 496 574 927 
Net lease cost$3,278 $5,615 $7,576 $8,249 
Supplemental information related to leases is as follows:
Other InformationSix Months Ended June 30,
20222021
Cash flows:
Cash amounts paid included in the measurement of lease liabilities:
Operating cash outflows from operating leases$7,238 $6,203 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$6,606 $2,961 
Lease term and discount rate:
Weighted average remaining lease term (years)5.83.9
Weighted average discount rate1.64 %2.51 %
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 2022 and 2027, and some have options to extend the lease for up to 10 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, 2022 totaled $493,000 and $798,000, respectively, and for the three and six months ended June 30, 2021 totaled $296,000 and $590,000, respectively. Rental income is included in hardware and other revenue in the condensed consolidated statements of income. As of June 30, 2022, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2022 (Remaining)$914 
20231,858 
20241,898 
20251,363 
2026408 
Thereafter131 
Total $6,572 
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 10 years from the execution date. Some of these leases include options to extend for up to five years. We have no finance leases and no related party lease agreements as of June 30, 2022. Right-of-use lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheets.
The components of operating lease expense were as follows:
Lease CostsThree Months Ended June 30,Six Months Ended June 30,
2022202120222021
Operating lease cost$2,586 $4,388 $6,008 $6,110 
Short-term lease cost488 731 994 1,212 
Variable lease cost204 496 574 927 
Net lease cost$3,278 $5,615 $7,576 $8,249 
Supplemental information related to leases is as follows:
Other InformationSix Months Ended June 30,
20222021
Cash flows:
Cash amounts paid included in the measurement of lease liabilities:
Operating cash outflows from operating leases$7,238 $6,203 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$6,606 $2,961 
Lease term and discount rate:
Weighted average remaining lease term (years)5.83.9
Weighted average discount rate1.64 %2.51 %
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 2022 and 2027, and some have options to extend the lease for up to 10 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, 2022 totaled $493,000 and $798,000, respectively, and for the three and six months ended June 30, 2021 totaled $296,000 and $590,000, respectively. Rental income is included in hardware and other revenue in the condensed consolidated statements of income. As of June 30, 2022, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2022 (Remaining)$914 
20231,858 
20241,898 
20251,363 
2026408 
Thereafter131 
Total $6,572