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Leases
 6 Months Ended
Jun. 30, 2023
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 maturities between one to 11 years. Some of these leases include options to extend for up to six years. We have no finance leases and one related party lessor agreement (see Note 16, "Related party transactions") as of June 30, 2023. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the condensed consolidated balance sheets. During the three and six months ended June 30, 2023, we incurred lease restructuring costs, resulting in zero and $1.4 million of operating lease costs. During the three and six months ended June 30, 2022, we incurred lease restructuring costs of zero and $1.0 million of operating lease costs.
The components of operating lease expense were as follows:
Lease CostsThree Months Ended June 30,Six Months Ended June 30,
2023202220232022
Operating lease cost$3,119 $2,586 $7,510 $6,008 
Short-term lease cost513 488 1,036 994 
Variable lease cost216 204 536 574 
Net lease cost$3,848 $3,278 $9,082 $7,576 
Supplemental information related to leases is as follows:
Other InformationSix Months Ended June 30,
20232022
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$5,873 $7,238 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$2,391 $6,606 
Lease term and discount rate:
Weighted average remaining lease term (years)6.95.8
Weighted average discount rate1.60 %1.64 %
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 2023 and 2028, 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 and six months ended June 30, 2023 totaled $545,000 and $1.0 million, respectively, and for the three and six months ended June 30, 2022 totaled $493,000 and $798,000, respectively. As of June 30, 2023, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2023 (Remaining)$1,133 
20243,049 
20252,317 
20261,171 
2027913 
Thereafter733 
Total $9,316 
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 maturities between one to 11 years. Some of these leases include options to extend for up to six years. We have no finance leases and one related party lessor agreement (see Note 16, "Related party transactions") as of June 30, 2023. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the condensed consolidated balance sheets. During the three and six months ended June 30, 2023, we incurred lease restructuring costs, resulting in zero and $1.4 million of operating lease costs. During the three and six months ended June 30, 2022, we incurred lease restructuring costs of zero and $1.0 million of operating lease costs.
The components of operating lease expense were as follows:
Lease CostsThree Months Ended June 30,Six Months Ended June 30,
2023202220232022
Operating lease cost$3,119 $2,586 $7,510 $6,008 
Short-term lease cost513 488 1,036 994 
Variable lease cost216 204 536 574 
Net lease cost$3,848 $3,278 $9,082 $7,576 
Supplemental information related to leases is as follows:
Other InformationSix Months Ended June 30,
20232022
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$5,873 $7,238 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$2,391 $6,606 
Lease term and discount rate:
Weighted average remaining lease term (years)6.95.8
Weighted average discount rate1.60 %1.64 %
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 2023 and 2028, 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 and six months ended June 30, 2023 totaled $545,000 and $1.0 million, respectively, and for the three and six months ended June 30, 2022 totaled $493,000 and $798,000, respectively. As of June 30, 2023, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2023 (Remaining)$1,133 
20243,049 
20252,317 
20261,171 
2027913 
Thereafter733 
Total $9,316