XML 29 R17.htm IDEA: XBRL DOCUMENT v3.20.4
LEASES
 12 Months Ended
Dec. 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 in 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 December 31, 2020. Operating lease costs were approximately $10.2 million in 2020, $9.9 million in 2019, and $7.4 million in 2018.
The components of operating lease expense were as follows (in thousands):
Lease CostsFinancial Statement ClassificationFor the year endedFor the year ended
20202019
Operating lease costSelling, general and administrative expenses$6,524 $6,379 
Short-term lease costSelling, general and administrative expenses1,940 2,269 
Variable lease costSelling, general and administrative expenses1,760 1,274 
Net lease cost$10,224 $9,922 
As of December 31, ROU lease assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows (in thousands):
20202019
Assets:
Operating lease right-of-use assets$18,734 $18,992 
Liabilities:
Operating leases, short-term5,904 6,387 
Operating leases, long-term16,279 16,822 
Total lease liabilities$22,183 $23,209 
Supplemental information related to leases was as follows:
Other InformationFor the year endedFor the year ended
20202019
Cash Flows (in thousands):
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$8,131 $7,267 
    Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$5,524 $3,466 
Lease Term and Discount Rate:
Weighted average remaining lease term (years)34
Weighted average discount rate3.28 %4.00 %
As of December 31, 2020, maturities of lease liabilities were as follows (in thousands):
Year ending December 31,Amount
2021$7,015 
20224,853 
20233,826 
20243,337 
20252,198 
Thereafter2,537 
Total lease payments23,766 
Less: Interest(1,583)
Present value of operating lease liabilities$22,183 

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 2021 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 from third-party tenants was $1.1 million in 2020, $1.1 million in 2019, and $1.2 million in 2018. Rental income is included in hardware and other revenue on the consolidated statements of comprehensive income. Future minimum operating rental income based on contractual agreements is as follows (in thousands):
Year ending December 31,Amount
2021$1,372 
20221,402 
20231,432 
20241,462 
2025858 
Thereafter— 
Total $6,526 
As of December 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 in 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 December 31, 2020. Operating lease costs were approximately $10.2 million in 2020, $9.9 million in 2019, and $7.4 million in 2018.
The components of operating lease expense were as follows (in thousands):
Lease CostsFinancial Statement ClassificationFor the year endedFor the year ended
20202019
Operating lease costSelling, general and administrative expenses$6,524 $6,379 
Short-term lease costSelling, general and administrative expenses1,940 2,269 
Variable lease costSelling, general and administrative expenses1,760 1,274 
Net lease cost$10,224 $9,922 
As of December 31, ROU lease assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows (in thousands):
20202019
Assets:
Operating lease right-of-use assets$18,734 $18,992 
Liabilities:
Operating leases, short-term5,904 6,387 
Operating leases, long-term16,279 16,822 
Total lease liabilities$22,183 $23,209 
Supplemental information related to leases was as follows:
Other InformationFor the year endedFor the year ended
20202019
Cash Flows (in thousands):
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$8,131 $7,267 
    Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$5,524 $3,466 
Lease Term and Discount Rate:
Weighted average remaining lease term (years)34
Weighted average discount rate3.28 %4.00 %
As of December 31, 2020, maturities of lease liabilities were as follows (in thousands):
Year ending December 31,Amount
2021$7,015 
20224,853 
20233,826 
20243,337 
20252,198 
Thereafter2,537 
Total lease payments23,766 
Less: Interest(1,583)
Present value of operating lease liabilities$22,183 

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 2021 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 from third-party tenants was $1.1 million in 2020, $1.1 million in 2019, and $1.2 million in 2018. Rental income is included in hardware and other revenue on the consolidated statements of comprehensive income. Future minimum operating rental income based on contractual agreements is as follows (in thousands):
Year ending December 31,Amount
2021$1,372 
20221,402 
20231,432 
20241,462 
2025858 
Thereafter— 
Total $6,526 
As of December 31, 2020, we had no additional significant operating or finance leases that had not yet commenced.