Leases

9 Months Ended

Sep. 30, 2024

Leases

Leases

8. 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 7 years, with a weighted-average remaining lease term of 4 years at both September 30, 2024 and December 31, 2023. Some operating leases include options to extend the leases for up to 5 years and are only considered in the lease terms if the Company is reasonably certain it will exercise the option to extend.

The components of lease costs for the three- and nine-month periods ended September 30, 2024 and 2023 were as follows (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
	Classification	2024		2023		2024		2023
Operating lease costs(1)	Cost of revenues	$	700	$	823	$	1,948	$	2,400
Operating lease costs(1)	Selling, general and administrative expenses		76		51		229		131
Rental revenues	Revenues		(47)		(129)		(269)		(357)
Rental revenues	Other (income) expense, net		(13)		(23)		(74)		(59)
Net operating lease costs		$	716	$	722	$	1,834	$	2,115

(1) Includes the costs of leases with a term of one year or less.

As of September 30, 2024, 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):

2024 (excluding the nine months ended September 30, 2024)	$	468
2025		1,542
2026		1,456
2027		1,093
2028		508
Thereafter		599
Total future minimum lease payments		5,666
Less imputed interest		(502)
Present value of lease liabilities	$	5,164

Supplemental cash flow information pertaining to the Company’s leasing activity for the nine months ended September 30, 2024 and 2023 is as follows (in thousands):

	Nine Months Ended September 30,
	2024		2023
Cash payments for lease liabilities included in operating cash flows	$	1,450	$	1,227
Right-of-use assets obtained in exchange for operating lease obligations	$	827	$	511