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Leases
 3 Months Ended
Mar. 31, 2024
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 remaining terms of one to 11 years. Some of these leases include options to extend for up to six years. We have no finance leases and one related party lessor agreement (see Note 16, "Related party transactions") as of March 31, 2024. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the condensed consolidated balance sheets. During the three months ended March 31, 2024, we had no lease restructuring costs, and during the three months ended March 31, 2023, we incurred lease restructuring costs resulting in an additional $1.4 million of operating lease costs.
The components of operating lease expense were as follows:
Lease CostsThree Months Ended March 31,
20242023
Operating lease cost$2,165 $4,391 
Short-term lease cost551 523 
Variable lease cost238 320 
Net lease cost$2,954 $5,234 
Supplemental information related to leases is as follows:
Other InformationThree Months Ended March 31,
20242023
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$3,185 $2,510 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$1,389 $1,406 
Lease term and discount rate:
Weighted average remaining lease term (years)6.67.1
Weighted average discount rate1.67 %1.59 %
Rental income from third parties
We own office buildings in Bangor, Falmouth, and Yarmouth, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; Moraine, Ohio; and Kingston Springs, Tennessee. 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 2024 and 2028, 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 months ended March 31, 2024, totaled $761,000, and for the three months ended March 31, 2023, totaled $466,000. Rental income is included in hardware and other revenue on the consolidated statements of income. As of March 31, 2024, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2024 (Remaining)$2,418 
20252,450 
20261,171 
2027913 
2028734 
Thereafter— 
Total $7,686 
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 remaining terms of one to 11 years. Some of these leases include options to extend for up to six years. We have no finance leases and one related party lessor agreement (see Note 16, "Related party transactions") as of March 31, 2024. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the condensed consolidated balance sheets. During the three months ended March 31, 2024, we had no lease restructuring costs, and during the three months ended March 31, 2023, we incurred lease restructuring costs resulting in an additional $1.4 million of operating lease costs.
The components of operating lease expense were as follows:
Lease CostsThree Months Ended March 31,
20242023
Operating lease cost$2,165 $4,391 
Short-term lease cost551 523 
Variable lease cost238 320 
Net lease cost$2,954 $5,234 
Supplemental information related to leases is as follows:
Other InformationThree Months Ended March 31,
20242023
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$3,185 $2,510 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$1,389 $1,406 
Lease term and discount rate:
Weighted average remaining lease term (years)6.67.1
Weighted average discount rate1.67 %1.59 %
Rental income from third parties
We own office buildings in Bangor, Falmouth, and Yarmouth, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; Moraine, Ohio; and Kingston Springs, Tennessee. 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 2024 and 2028, 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 months ended March 31, 2024, totaled $761,000, and for the three months ended March 31, 2023, totaled $466,000. Rental income is included in hardware and other revenue on the consolidated statements of income. As of March 31, 2024, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2024 (Remaining)$2,418 
20252,450 
20261,171 
2027913 
2028734 
Thereafter— 
Total $7,686