Leases

3 Months Ended

Mar. 31, 2019

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 and they expire from one year to seven years. Some of these leases include options to extend for up to 10 years.We had no finance leases and no related party lease agreements as of March 31, 2019. Operating lease cost was approximately $2.1 million for the three months ended March 31, 2019 and $1.6 million for the three months ended March 31, 2018.

The components of operating lease expense were as follows (in thousands):

Lease Costs	Financial Statement Classification	Three Months Ended March 31,
		2019
Operating lease cost	Selling, general and administrative expenses	$	1,370
Short-term lease cost	Selling, general and administrative expenses	570
Variable lease cost	Selling, general and administrative expenses	163
Net lease cost		$	2,103

As of March 31, 2019, ROU lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheet as follows (in thousands):

	March 31, 2019
	2019
Assets:
Operating lease right-of-use assets	$	20,067
Liabilities:
Operating leases, short-term	5,777
Operating leases, long-term	18,956
Total lease liabilities	$	24,733

Supplemental information related to leases was as follows (in thousands):

Other Information	Three Months Ended March 31,
	2019
Cash Flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,530
Lease Term and Discount Rate:
Weighted average remaining lease term (years)	5
Weighted average discount rate	4.00		%

As of March 31, 2019, maturities of lease liabilities were as follows (in thousands):

Year ending December 31,	Amount
2019 (Remaining 2019)	$	5,316
2020	6,579
2021	5,293
2022	3,375
2023	2,716
Thereafter	3,989
Total lease payments	27,268
Less: Interest	(2,535		)
Present value of operating lease liabilities	$	24,733

As of December 31, 2018, the future minimum lease commitments related to lease agreements under Topic 840, the predecessor of Topic 842, were as follows (in thousands):

Year ending December 31,	Amount
2019	$	5,994
2020	5,146
2021	3,976
2022	1,925
2023	1,164
Thereafter	2,132
Total	$	20,337

We own office buildings in Bangor, Falmouth and Yarmouth, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; and Moraine, Ohio. 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 2019 and 2025, some of which have options to extend the lease for up to five 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 for the three months ended March 31, 2019 totaled $284,000 and for the three months ended March 31, 2018 totaled $357,000. Rental income is included in Other revenue on the condensed consolidated statement of income. Future minimum operating rental income based on contractual agreements are as follows (in thousands):

Year ending December 31,	Amount
2019 (Remaining 2019)	$	998
2020	1,341
2021	1,372
2022	1,402
2023	1,432
Thereafter	2,395
Total	$	8,940

As of March 31, 2019, we had no additional significant operating or finance leases that had not yet commenced.

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 and they expire from one year to seven years. Some of these leases include options to extend for up to 10 years.We had no finance leases and no related party lease agreements as of March 31, 2019. Operating lease cost was approximately $2.1 million for the three months ended March 31, 2019 and $1.6 million for the three months ended March 31, 2018.

The components of operating lease expense were as follows (in thousands):

Lease Costs	Financial Statement Classification	Three Months Ended March 31,
		2019
Operating lease cost	Selling, general and administrative expenses	$	1,370
Short-term lease cost	Selling, general and administrative expenses	570
Variable lease cost	Selling, general and administrative expenses	163
Net lease cost		$	2,103

As of March 31, 2019, ROU lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheet as follows (in thousands):

	March 31, 2019
	2019
Assets:
Operating lease right-of-use assets	$	20,067
Liabilities:
Operating leases, short-term	5,777
Operating leases, long-term	18,956
Total lease liabilities	$	24,733

Supplemental information related to leases was as follows (in thousands):

Other Information	Three Months Ended March 31,
	2019
Cash Flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,530
Lease Term and Discount Rate:
Weighted average remaining lease term (years)	5
Weighted average discount rate	4.00		%

As of March 31, 2019, maturities of lease liabilities were as follows (in thousands):

Year ending December 31,	Amount
2019 (Remaining 2019)	$	5,316
2020	6,579
2021	5,293
2022	3,375
2023	2,716
Thereafter	3,989
Total lease payments	27,268
Less: Interest	(2,535		)
Present value of operating lease liabilities	$	24,733

As of December 31, 2018, the future minimum lease commitments related to lease agreements under Topic 840, the predecessor of Topic 842, were as follows (in thousands):

Year ending December 31,	Amount
2019	$	5,994
2020	5,146
2021	3,976
2022	1,925
2023	1,164
Thereafter	2,132
Total	$	20,337

We own office buildings in Bangor, Falmouth and Yarmouth, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; and Moraine, Ohio. 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 2019 and 2025, some of which have options to extend the lease for up to five 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 for the three months ended March 31, 2019 totaled $284,000 and for the three months ended March 31, 2018 totaled $357,000. Rental income is included in Other revenue on the condensed consolidated statement of income. Future minimum operating rental income based on contractual agreements are as follows (in thousands):

Year ending December 31,	Amount
2019 (Remaining 2019)	$	998
2020	1,341
2021	1,372
2022	1,402
2023	1,432
Thereafter	2,395
Total	$	8,940

As of March 31, 2019, we had no additional significant operating or finance leases that had not yet commenced.