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LEASES
 12 Months Ended
Dec. 31, 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 December 31, 2024. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the consolidated balance sheets. We incurred no lease restructuring costs during 2024, $6.4 million in 2023 and $1.7 million in 2022, respectively.
The components of operating lease expense were as follows:
Lease CostsYears ended December 31,
202420232022
Operating lease cost$9,166 $19,468 $14,743 
Short-term lease cost2,124 2,121 2,166 
Variable lease cost768 1,009 1,047 
Net lease cost$12,058 $22,598 $17,956 
Supplemental information related to leases is as follows:
Other InformationYears ended December 31,
202420232022
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$12,578 $12,555 $13,562 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$4,404 $3,383 $25,171 
Lease term and discount rate:
Weighted average remaining lease term (years)677
Weighted average discount rate3.22 %1.59 %1.57 %
As of December 31, 2024, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2025$10,675 
20268,387 
20277,458 
20284,624 
20293,698 
Thereafter10,742 
Total lease payments45,584 
Less: Interest(5,150)
Present value of operating lease liabilities$40,434 
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 18, “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 2025 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 was $3.2 million in 2024, $2.1 million in 2023, and $1.7 million in 2022. 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
2025$2,270 
20261,274 
2027982 
2028704 
2029— 
Total $5,230 
As of December 31, 2024, we had no additional significant operating or finance leases that had not yet commenced.
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 December 31, 2024. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the consolidated balance sheets. We incurred no lease restructuring costs during 2024, $6.4 million in 2023 and $1.7 million in 2022, respectively.
The components of operating lease expense were as follows:
Lease CostsYears ended December 31,
202420232022
Operating lease cost$9,166 $19,468 $14,743 
Short-term lease cost2,124 2,121 2,166 
Variable lease cost768 1,009 1,047 
Net lease cost$12,058 $22,598 $17,956 
Supplemental information related to leases is as follows:
Other InformationYears ended December 31,
202420232022
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$12,578 $12,555 $13,562 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$4,404 $3,383 $25,171 
Lease term and discount rate:
Weighted average remaining lease term (years)677
Weighted average discount rate3.22 %1.59 %1.57 %
As of December 31, 2024, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2025$10,675 
20268,387 
20277,458 
20284,624 
20293,698 
Thereafter10,742 
Total lease payments45,584 
Less: Interest(5,150)
Present value of operating lease liabilities$40,434 
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 18, “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 2025 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 was $3.2 million in 2024, $2.1 million in 2023, and $1.7 million in 2022. 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
2025$2,270 
20261,274 
2027982 
2028704 
2029— 
Total $5,230 
As of December 31, 2024, we had no additional significant operating or finance leases that had not yet commenced.