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Leases

12 Months Ended

Dec. 31, 2023

(3) 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 7 years, with a weighted-average remaining lease term of 4 years at December 31, 2023. Some operating leases include options to extend the leases for up to 5 years. The Company’s lease calculations include the impact of options to extend when it is reasonably certain the Company will exercise the option. The Company used a weighted-average discount rate of 6.2% and 3.0% for leases entered into during 2023 and 2022, respectively. The components of net operating lease costs for 2023, 2022, and 2021 were as follows (in thousands):


		Year Ended December 31,
	Classification	2023		2022		2021
Operating lease costs⁽¹⁾	Cost of revenues	$	3,090	$	2,374	$	1,552
Operating lease costs⁽¹⁾	Selling, general and administrative expenses		216		275		243
Rental revenues	Revenues		(470)		(419)		(137)
Rental revenues	Other (income) expense, net		(91)		(70)		(89)
Net operating lease costs		$	2,745	$	2,160	$	1,569

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

As of December 31, 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):



2024	$	1,721
2025		1,386
2026		1,337
2027		924
2028		404
Thereafter		100
Total future minimum lease payments		5,872
Less imputed interest		(371)
Present value of lease liabilities	$	5,501

Supplemental cash flow information pertaining to the Company’s leasing activity for the years ended December 31, 2023, 2022 and 2021 was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Cash payments for lease liabilities included in operating cash flows	$	1,641	$	1,660	$	1,420
Right-of-use assets obtained in exchange for operating lease obligations	$	1,286	$	3,456	$	2,377