Leases

3 Months Ended

Mar. 31, 2022

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 with original maturities between one to 10 years from the execution date. Some of these leases include options to extend for up to 10 years. We have no finance leases and no related party lease agreements as of March 31, 2022. Right-of-use lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheets.

The components of operating lease expense were as follows:

Lease Costs	Three Months Ended March 31,
	2022		2021
Operating lease cost	$	3,422	$	1,722
Short-term lease cost	506		481
Variable lease cost	370		431
Net lease cost	$	4,298	$	2,634

Supplemental information related to leases is as follows:

Other Information	Three Months Ended March 31,
	2022			2021
Cash flows:
Cash amounts paid included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3,613		$	1,829
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases	$	4,980		$	2,005
Lease term and discount rate:
Weighted average remaining lease term (years)	5.4			4.6
Weighted average discount rate	1.72		%	2.69		%

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 2022 and 2027, and some have options to extend the lease for up to 10 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, 2022 totaled $305,000 and for the three months ended March 31, 2021 totaled $294,000. Rental income is included in hardware and other revenue in the condensed consolidated statements of income. As of March 31, 2022, future minimum operating rental income based on contractual agreements is as follows:

Year ending December 31,	Amount
2022 (Remaining)	$	1,332
2023	1,858
2024	1,898
2025	1,363
2026	408
Thereafter	130
Total	$	6,989

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 with original maturities between one to 10 years from the execution date. Some of these leases include options to extend for up to 10 years. We have no finance leases and no related party lease agreements as of March 31, 2022. Right-of-use lease assets and lease liabilities for our operating leases were recorded in the condensed consolidated balance sheets.

The components of operating lease expense were as follows:

Lease Costs	Three Months Ended March 31,
	2022		2021
Operating lease cost	$	3,422	$	1,722
Short-term lease cost	506		481
Variable lease cost	370		431
Net lease cost	$	4,298	$	2,634

Supplemental information related to leases is as follows:

Other Information	Three Months Ended March 31,
	2022			2021
Cash flows:
Cash amounts paid included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	3,613		$	1,829
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases	$	4,980		$	2,005
Lease term and discount rate:
Weighted average remaining lease term (years)	5.4			4.6
Weighted average discount rate	1.72		%	2.69		%

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 2022 and 2027, and some have options to extend the lease for up to 10 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, 2022 totaled $305,000 and for the three months ended March 31, 2021 totaled $294,000. Rental income is included in hardware and other revenue in the condensed consolidated statements of income. As of March 31, 2022, future minimum operating rental income based on contractual agreements is as follows:

Year ending December 31,	Amount
2022 (Remaining)	$	1,332
2023	1,858
2024	1,898
2025	1,363
2026	408
Thereafter	130
Total	$	6,989