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Leases
 3 Months Ended
Mar. 31, 2020
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 eight 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, 2020. Operating lease costs were approximately $2.6 million for the three months ended March 31, 2020, and $2.1 million for the three months ended March 31, 2019.
The components of operating lease expense were as follows:
Lease CostsFinancial Statement ClassificationThree Months Ended March 31,
20202019
Operating lease costSelling, general and administrative expenses$1,666  $1,370  
Short-term lease costSelling, general and administrative expenses574  570  
Variable lease costSelling, general and administrative expenses394  163  
Net lease cost$2,634  $2,103  
As of March 31, 2020, Right-of-use ("ROU") lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheet as follows:
March 31, 2020December 31, 2019
Assets:
Operating lease right-of-use assets$17,992  $18,992  
Liabilities:
Operating leases, short-term6,373  6,387  
Operating leases, long-term15,548  16,822  
Total lease liabilities$21,921  $23,209  
Supplemental information related to leases was as follows:
Other InformationThree Months Ended March 31,
20202019
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$1,873  $1,530  
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$457  $431  
Lease term and discount rate:
Weighted average remaining lease term (years)45
Weighted average discount rate4.00 %4.00 %
As of March 31, 2020, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2020 (Remaining 2020)$5,845  
20216,340  
20224,021  
20232,989  
20242,545  
Thereafter2,133  
Total lease payments23,873  
Less: Interest(1,952) 
Present value of operating lease liabilities$21,921  
Rental Income from third parties
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 2020 and 2025, and some 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 from third-party tenants for the three months ended March 31, 2020, totaled $274,000 and for the three months ended March 31, 2019, totaled $284,000. Rental income is included in Hardware and other revenue on the condensed consolidated statements of income. Future minimum operating rental income based on contractual agreements is as follows:

Year ending December 31,Amount
2020 (Remaining 2020)$1,009  
20211,372  
20221,402  
20231,432  
20241,462  
Thereafter857  
Total $7,534  
As of March 31, 2020, 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 eight 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, 2020. Operating lease costs were approximately $2.6 million for the three months ended March 31, 2020, and $2.1 million for the three months ended March 31, 2019.
The components of operating lease expense were as follows:
Lease CostsFinancial Statement ClassificationThree Months Ended March 31,
20202019
Operating lease costSelling, general and administrative expenses$1,666  $1,370  
Short-term lease costSelling, general and administrative expenses574  570  
Variable lease costSelling, general and administrative expenses394  163  
Net lease cost$2,634  $2,103  
As of March 31, 2020, Right-of-use ("ROU") lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheet as follows:
March 31, 2020December 31, 2019
Assets:
Operating lease right-of-use assets$17,992  $18,992  
Liabilities:
Operating leases, short-term6,373  6,387  
Operating leases, long-term15,548  16,822  
Total lease liabilities$21,921  $23,209  
Supplemental information related to leases was as follows:
Other InformationThree Months Ended March 31,
20202019
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$1,873  $1,530  
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$457  $431  
Lease term and discount rate:
Weighted average remaining lease term (years)45
Weighted average discount rate4.00 %4.00 %
As of March 31, 2020, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2020 (Remaining 2020)$5,845  
20216,340  
20224,021  
20232,989  
20242,545  
Thereafter2,133  
Total lease payments23,873  
Less: Interest(1,952) 
Present value of operating lease liabilities$21,921  
Rental Income from third parties
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 2020 and 2025, and some 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 from third-party tenants for the three months ended March 31, 2020, totaled $274,000 and for the three months ended March 31, 2019, totaled $284,000. Rental income is included in Hardware and other revenue on the condensed consolidated statements of income. Future minimum operating rental income based on contractual agreements is as follows:

Year ending December 31,Amount
2020 (Remaining 2020)$1,009  
20211,372  
20221,402  
20231,432  
20241,462  
Thereafter857  
Total $7,534  
As of March 31, 2020, we had no additional significant operating or finance leases that had not yet commenced.