9. Leases

The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of 0 to 6 years, with a weighted-average remaining lease term of 3 years at March 31, 2019. Some operating leases include options to extend the leases for up to 5 years. At January 1, 2019, upon implementation of ASU 2016-02, the liability for the Company’s operating leases was discounted to present value using a weighted-average discount rate of 3.5%. The components of lease costs for the three months ended March 31, 2019 were as follows:


		Three Months Ended March 31,
	Classification	2019
Operating lease cost (1)	Cost of revenues	$	486
Operating lease cost	Selling, general and administrative		53
Rental revenues	Other (income) expense		(12)
Net lease cost		$	527

(1)Includes the costs of leases with a term of 12 months or less.

As of March 31, 2019, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows:



2019 (excluding the three months ended March 31, 2019)	$	1,194
2020		1,315
2021		1,074
2022		437
2023		150
Thereafter		138
Total future minimum lease payments		4,308
Less imputed interest		(239)
Present value of lease liabilities	$	4,069

Supplemental cash flow information pertaining to the Company’s leasing activity for the three months ended March 31, 2019 was as follows:


	Three Months Ended March 31,
	2019
Cash payments for operating lease liabilities	$	375
Right-of-use assets obtained in exchange for operating lease obligations	$	484