(9) Leases

Lessee

The Company has entered into various non-cancelable office space leases with original lease periods expiring between 2019 and 2024. As of June 30, 2019, operating lease ROU assets of $2.4 million were reported in other non-current assets in the consolidated balance sheets. As of June 30, 2019, total operating lease liabilities were $3.0 million, of which $1.2 million are due within one year and $1.8 million are due beyond one year and were recorded in accrued expenses and other current liabilities and other non-current liabilities, respectively, in the consolidated balance sheets.

Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. Lease expense for lease payments is recognized on a straight-line basis over the lease term and is reported in administrative expenses in the consolidated statements of income.

The following table summarizes the components of lease expense (in thousands):


	Three months		Six months
	ended June 30,		ended June 30,
	2019		2019
Operating lease cost	$	586	$	1,186
Short-term lease cost		16		31
Variable lease cost		84		157
Total lease cost	$	686	$	1,374

The weighted-average remaining term of the Company’s operating leases was 3.2 years and the weighted-average discount rate used to measure the present value of the Company’s operating lease liabilities was 4.2% as of June 30, 2019.

Maturities of the Company’s operating lease liabilities, which do not include short-term leases, as of June 30, 2019 were as follows (in thousands):



2020	$	1,309
2021		692
2022		565
2023		429
2024		221
2025 and thereafter		-
Total lease payments		3,216
Less imputed interest		(213)
Total operating lease liabilities	$	3,003

Cash paid for operating leases was $1.2 million during the six months ended June 30, 2019.

As of June 30, 2019, the Company has $6.1 million of undiscounted future payments under additional operating leases that have not yet commenced, which are excluded from the table above. These operating leases are expected to commence in the third quarter of 2019 with lease terms between 3 and 6 years.

Lessor

The Company leases its rental equipment on either short-term operating leases through master lease agreements, long-term non-cancelable operating leases, or finance leases. The following table summarizes the components of lease revenue (in thousands):


	Three months		Six months
	ended June 30,		ended June 30,
	2019		2019
Lease revenue - sales-type and direct financing leases
Profit at lease commencement	$	-	$	-
Interest income on lease receivable		10,934		22,324
		10,934		22,324
Lease revenue - operating leases		61,146		122,462
Other revenue		3,100		5,905
Interest income on financing receivable		594		594
Total lease revenue	$	75,774	$	151,285

The following represents future minimum rents receivable under long-term non-cancelable operating leases (in thousands):


	As of
	June 30, 2019
2020	$	161,298
2021		139,138
2022		120,972
2023		93,681
2024		52,921
2025 and thereafter		95,453
Total	$	663,463


	As of
	December 31, 2018
2019	$	158,252
2020		129,740
2021		112,111
2022		96,964
2023		66,864
2024 and thereafter		107,346
Total	$	671,277

See Note 6 for contractual maturities of the Company’s gross sales-type and finance lease receivables.