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Leases
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases LeasesWe 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 and 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 September 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 nine months ended September 30, 2023, we incurred lease restructuring costs, resulting in $3.1 million and $4.5 million of operating lease costs. During both the three and nine months ended September 30, 2022, we incurred lease restructuring costs resulting $1.4 million of operating lease costs.
The components of operating lease expense were as follows:
Lease CostsThree Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Operating lease cost$6,306 $4,601 $13,816 $10,609 
Short-term lease cost540 578 1,576 1,572 
Variable lease cost233 276 769 850 
Net lease cost$7,079 $5,455 $16,161 $13,031 
Supplemental information related to leases is as follows:
Other InformationNine Months Ended September 30,
20232022
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$9,118 $10,247 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$3,108 $23,821 
Lease term and discount rate:
Weighted average remaining lease term (years)6.97.3
Weighted average discount rate1.66 %1.57 %
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 nine months ended September 30, 2023, totaled $552,000 and $1.6 million, respectively, and for the three and nine months ended September 30, 2022 totaled $456,000 and $1.2 million, respectively. As of September 30, 2023, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2023 (Remaining)$592 
20243,049 
20252,317 
20261,171 
2027913 
Thereafter733 
Total $8,775 
Leases LeasesWe 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 and 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 September 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 nine months ended September 30, 2023, we incurred lease restructuring costs, resulting in $3.1 million and $4.5 million of operating lease costs. During both the three and nine months ended September 30, 2022, we incurred lease restructuring costs resulting $1.4 million of operating lease costs.
The components of operating lease expense were as follows:
Lease CostsThree Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Operating lease cost$6,306 $4,601 $13,816 $10,609 
Short-term lease cost540 578 1,576 1,572 
Variable lease cost233 276 769 850 
Net lease cost$7,079 $5,455 $16,161 $13,031 
Supplemental information related to leases is as follows:
Other InformationNine Months Ended September 30,
20232022
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$9,118 $10,247 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$3,108 $23,821 
Lease term and discount rate:
Weighted average remaining lease term (years)6.97.3
Weighted average discount rate1.66 %1.57 %
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 nine months ended September 30, 2023, totaled $552,000 and $1.6 million, respectively, and for the three and nine months ended September 30, 2022 totaled $456,000 and $1.2 million, respectively. As of September 30, 2023, future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2023 (Remaining)$592 
20243,049 
20252,317 
20261,171 
2027913 
Thereafter733 
Total $8,775