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LEASES
 12 Months Ended
Dec. 31, 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 12 years. Some of these leases include options to extend for up to six years. We have no finance leases and no related party lease agreements as of December 31, 2022. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the consolidated balance sheets. During 2022, we incurred lease restructuring costs, resulting in an additional $1.7 million of operating lease costs.
The components of operating lease expense were as follows:
Lease CostsYears ended December 31,
202220212020
Operating lease cost$14,743 $11,095 $6,524 
Short-term lease cost2,166 2,308 1,940 
Variable lease cost1,047 1,659 1,760 
Net lease cost$17,956 $15,062 $10,224 
Supplemental information related to leases is as follows:
Other InformationYears ended December 31,
20222021
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$13,562 $11,432 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$25,171 $20,140 
Lease term and discount rate:
Weighted average remaining lease term (years)76
Weighted average discount rate1.57 %1.81 %
As of December 31, 2022, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2023$11,054 
202410,878 
20258,942 
20267,022 
20275,943 
Thereafter17,876 
Total lease payments61,715 
Less: Interest(2,930)
Present value of operating lease liabilities$58,785 
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 2023 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 was $1.7 million in 2022, $1.2 million in 2021, and $1.1 million in 2020. Rental income is included in hardware and other revenue on the consolidated statements of income. Future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2023$1,881 
20241,904 
20251,363 
2026408 
2027131 
Thereafter— 
Total $5,687 
As of December 31, 2022, 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 12 years. Some of these leases include options to extend for up to six years. We have no finance leases and no related party lease agreements as of December 31, 2022. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the consolidated balance sheets. During 2022, we incurred lease restructuring costs, resulting in an additional $1.7 million of operating lease costs.
The components of operating lease expense were as follows:
Lease CostsYears ended December 31,
202220212020
Operating lease cost$14,743 $11,095 $6,524 
Short-term lease cost2,166 2,308 1,940 
Variable lease cost1,047 1,659 1,760 
Net lease cost$17,956 $15,062 $10,224 
Supplemental information related to leases is as follows:
Other InformationYears ended December 31,
20222021
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$13,562 $11,432 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$25,171 $20,140 
Lease term and discount rate:
Weighted average remaining lease term (years)76
Weighted average discount rate1.57 %1.81 %
As of December 31, 2022, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2023$11,054 
202410,878 
20258,942 
20267,022 
20275,943 
Thereafter17,876 
Total lease payments61,715 
Less: Interest(2,930)
Present value of operating lease liabilities$58,785 
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 2023 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 was $1.7 million in 2022, $1.2 million in 2021, and $1.1 million in 2020. Rental income is included in hardware and other revenue on the consolidated statements of income. Future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2023$1,881 
20241,904 
20251,363 
2026408 
2027131 
Thereafter— 
Total $5,687 
As of December 31, 2022, we had no additional significant operating or finance leases that had not yet commenced.