Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

EVERTEC is a defendant in a number of legal proceedings arising in the ordinary course of business. Based on the opinion of legal counsel, management believes that the final disposition of these matters will not have a material adverse effect on the business, results of operations or financial condition of the Company. The Company has identified certain claims in which a loss may be incurred, but in the aggregate the loss would be minimal. For other claims, where the proceedings are in an initial phase, the Company is unable to estimate the range of possible loss for such legal proceedings. However, the Company at this time believes that any loss related to these latter claims will not be material.

Leases

The Company has operating leases for certain office facilities, buildings, telecommunications and other equipment; and finance leases for certain equipment. The Company’s lease contracts have remaining terms ranging from 1 year to 8 years, some of which may include options to extend the leases for up to 5 years, and some which may include the option to terminate the lease within 1 year.

Total lease cost consisted of the following:

	Years ended December 31,
(in thousands)	2021		2020
Operating lease cost	$	6,948	$	7,025
Variable lease cost	2,472		3,182
Total lease costs	$	9,420	$	10,207

Other Balance Sheet information related to operating leases was as follows:

	December 31,
(In thousands)	2021	2020
Right-of-use assets obtained in exchange for operating lease obligations	178	$	3,496
Weighted average remaining lease term, in years	4	5
Weighted Average Discount Rate	2.3%	2.8%

The following table presents the balance of Operating lease obligations:

	December 31,
(In thousands)	2021		2020
Operating lease liability - current	5,580		5,830
Operating lease liability - long-term	16,456		22,402
Total operating lease liabilities	$	22,036	$	28,232

Future minimum operating lease payments at December 31, 2021 were as follows:

(In thousands)
2022	6,387
2023	6,036
2024	5,123
2025	4,072
2026	871
Thereafter	1,617
Total future minimum lease payments	24,106
Less: imputed interest	(2,070)
Total	$	22,036