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 8 years, with a weighted-average remaining lease term of 3 years at June 30, 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- and six-months ended June 30, 2019 were as follows (in thousands):


		Three Months Ended June 30,		Six Months Ended June 30,
	Classification	2019		2019
Operating lease costs (1)	Cost of revenues	$	555	$	1,040
Operating lease costs	Selling, general and administrative expenses		54		107
Rental revenues	Other (income) expense		(13)		(25)
Net lease cost		$	596	$	1,122

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

As of June 30, 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 (in thousands):



2019 (excluding the six months ended June 30, 2019)	$	813
2020		1,388
2021		1,124
2022		480
2023		187
Thereafter		264
Total future minimum lease payments		4,256
Less imputed interest		(244)
Present value of lease liabilities	$	4,012

Supplemental cash flow information pertaining to the Company’s leasing activity for the six months ended June 30, 2019 was as follows (in thousands):


	Six Months Ended June 30,
	2019
Cash payments for operating lease liabilities	$	950
Right-of-use assets obtained in exchange for operating lease obligations	$	857