Leases

6 Months Ended

Jun. 30, 2023

Leases

Leases

8. Leases

The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of 0 to 6 years, with a weighted-average remaining lease term of 4 and 3 years at June 30, 2023 and December 31, 2022, respectively. Some operating leases include options to extend the leases for up to 5 years.

The components of lease costs for the three and six months ended June 30, 2023 and 2022 were as follows (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
	Classification	2023		2022		2023		2022
Operating lease costs(1)	Cost of revenues	$	808	$	618	$	1,577	$	1,139
Operating lease costs(1)	Selling, general and administrative expenses		40		67		80		140
Rental revenues	Revenues		(111)		(92)		(228)		(177)
Rental revenues	Interest and other income, net		(17)		(10)		(33)		(42)
Net operating lease costs		$	720	$	583	$	1,396	$	1,060

(1) Includes the costs of leases with a term of one year or less.

As of June 30, 2023, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows (in thousands):

2023 (excluding the six months ended June 30, 2023)	$	774
2024		1,529
2025		1,258
2026		1,174
2027		762
Thereafter		268
Total future minimum lease payments		5,765
Less imputed interest		(293)
Present value of lease liabilities	$	5,472

Supplemental cash flow information pertaining to the Company’s leasing activity for the six months ended June 30, 2023 and 2022 is as follows (in thousands):

	Six Months Ended June 30,
	2023		2022
Cash payments for lease liabilities included in operating cash flows	$	812	$	691
Right-of-use assets obtained in exchange for operating lease obligations	$	81	$	492