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Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
We lease office facilities, transportation, and other equipment for use in our operations. Most of our leases are non-cancelable operating lease agreements with remaining terms of one to 10 years. Some of these leases include options to extend for up to six years. We have no finance leases as of June 30, 2024. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the condensed consolidated balance sheets. During the three and six months ended June 30, 2024, we had no lease restructuring costs, and during the six months ended June 30, 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 June 30,Six Months Ended June 30,
2024202320242023
Operating lease cost$2,246 $3,119 $4,411 $7,510 
Short-term lease cost522 513 1,073 1,036 
Variable lease cost136 216 374 536 
Net lease cost$2,904 $3,848 $5,858 $9,082 
Supplemental information related to leases is as follows:
Other InformationSix Months Ended June 30,
20242023
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$6,310 $5,873 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$2,428 $2,391 
Lease term and discount rate:
Weighted average remaining lease term (years)6.56.9
Weighted average discount rate1.63 %1.60 %
Rental income from third parties
We own office buildings in Bangor, Falmouth, Yarmouth, and Orono, 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, one of which was formerly a related party (see Note 16, "Related Party Transactions"). 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 and six months ended June 30, 2024, totaled $791,000 and $1.6 million, respectively, and for the three and six months ended June 30, 2023, totaled $545,000 and $1.0 million, respectively. Rental income is included in hardware and other revenue on the consolidated statements of income. As of June 30, 2024, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2024 (Remaining)$1,599 
20252,221 
20261,141 
2027882 
2028704 
Thereafter— 
Total $6,547 
Leases Leases
We lease office facilities, transportation, and other equipment for use in our operations. Most of our leases are non-cancelable operating lease agreements with remaining terms of one to 10 years. Some of these leases include options to extend for up to six years. We have no finance leases as of June 30, 2024. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the condensed consolidated balance sheets. During the three and six months ended June 30, 2024, we had no lease restructuring costs, and during the six months ended June 30, 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 June 30,Six Months Ended June 30,
2024202320242023
Operating lease cost$2,246 $3,119 $4,411 $7,510 
Short-term lease cost522 513 1,073 1,036 
Variable lease cost136 216 374 536 
Net lease cost$2,904 $3,848 $5,858 $9,082 
Supplemental information related to leases is as follows:
Other InformationSix Months Ended June 30,
20242023
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$6,310 $5,873 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$2,428 $2,391 
Lease term and discount rate:
Weighted average remaining lease term (years)6.56.9
Weighted average discount rate1.63 %1.60 %
Rental income from third parties
We own office buildings in Bangor, Falmouth, Yarmouth, and Orono, 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, one of which was formerly a related party (see Note 16, "Related Party Transactions"). 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 and six months ended June 30, 2024, totaled $791,000 and $1.6 million, respectively, and for the three and six months ended June 30, 2023, totaled $545,000 and $1.0 million, respectively. Rental income is included in hardware and other revenue on the consolidated statements of income. As of June 30, 2024, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2024 (Remaining)$1,599 
20252,221 
20261,141 
2027882 
2028704 
Thereafter— 
Total $6,547