Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases

    The Company has operating and finance leases for office space, retail, data centers and certain office equipment with expiration dates ranging through 2028, with various renewal options. Only renewal options that were reasonably assured to be exercised are included in the lease liability. At September 30, 2020, the maturity of lease liabilities under Topic 842 "Leases" are as follows:

Year	Operating Leases		Financing Leases		Total
	(in thousands)
2020 (Remaining six months)	$	1,492	$	48	$	1,540
2021	4,560		190		4,750
2022	3,357		160		3,517
2023	2,925		99		3,024
2024	1,562		77		1,639
Thereafter	1,662		—		1,662
Total	15,558		574		16,132
Less: present value discount*	(2,038)		(58)		(2,096)
Present value of lease liabilities	13,520		516		14,036
Less: current portion of lease liabilities	(4,392)		(161)		(4,553)
Total long-term lease liabilities	$	9,128	$	355	$	9,483
* The discount rate used was the incremental borrowing rates respective to the country where the assets are located.

    The Company's net assets recorded under operating and finance leases were $13.6 million and $19.5 million as of September 30, 2020, and December 31, 2019, respectively. The lease cost is recognized in our Condensed Consolidated Statement of Income in the category of General and Administrative and is summarized as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(in thousands)				(in thousands)
Operating Lease Cost	$	1,622	$	2,016	$	5,472	$	6,265
Finance Lease Cost:
Amortization of Lease Assets	41		32		128		76
Interest on Lease liabilities	9		9		30		24
Finance Lease Cost	50		41		158		100
Sublease Income	(113)		(99)		(338)		(521)
Total Net Lease Cost	$	1,559	$	1,958	$	5,292	$	5,844

    Other information about lease amounts recognized in our Condensed Consolidated Statement of Income is summarized as follows:

	September 30, 2020
Weighted Average Lease Term - Operating Leases	3.7 years
Weighted Average Lease Term - Finance Leases	3.4 years
Weighted Average Discount Rate - Operating Leases	8.2	%
Weighted Average Discount Rate - Finance Leases	7.2	%

    At September 30, 2020, our lease liability of $14.0 million does not include certain arrangements, which are primarily airport leases, that do not meet the definition of a lease under Topic 842. Such arrangements represent further commitments of approximately $70.0 million as follows:

Year	Commitments
	(in thousands)
2020 (Remaining six months)	$	6,084
2021	22,784
2022	20,821
2023	20,308
Thereafter	—
Total	$	69,997

    Finance leases range from three to five years and are primarily for office equipment. Rental expense for office and airport facilities and certain equipment subject to operating leases for the nine months ended September 30, 2020 and 2019 was $11.2 million and $28.0 million, respectively. During the third quarter of 2020, each of these airport leases remains subject to force majeure provisions resulting from COVID-19 and the cessation of the Company's airport operations. These monthly rent payments have been temporarily waived until the Company restarts airport operations. It remains uncertain when and under what conditions each payment abatement will end.

Leases

Leases

    The Company has operating and finance leases for office space, retail, data centers and certain office equipment with expiration dates ranging through 2028, with various renewal options. Only renewal options that were reasonably assured to be exercised are included in the lease liability. At September 30, 2020, the maturity of lease liabilities under Topic 842 "Leases" are as follows:

Year	Operating Leases		Financing Leases		Total
	(in thousands)
2020 (Remaining six months)	$	1,492	$	48	$	1,540
2021	4,560		190		4,750
2022	3,357		160		3,517
2023	2,925		99		3,024
2024	1,562		77		1,639
Thereafter	1,662		—		1,662
Total	15,558		574		16,132
Less: present value discount*	(2,038)		(58)		(2,096)
Present value of lease liabilities	13,520		516		14,036
Less: current portion of lease liabilities	(4,392)		(161)		(4,553)
Total long-term lease liabilities	$	9,128	$	355	$	9,483
* The discount rate used was the incremental borrowing rates respective to the country where the assets are located.

    The Company's net assets recorded under operating and finance leases were $13.6 million and $19.5 million as of September 30, 2020, and December 31, 2019, respectively. The lease cost is recognized in our Condensed Consolidated Statement of Income in the category of General and Administrative and is summarized as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(in thousands)				(in thousands)
Operating Lease Cost	$	1,622	$	2,016	$	5,472	$	6,265
Finance Lease Cost:
Amortization of Lease Assets	41		32		128		76
Interest on Lease liabilities	9		9		30		24
Finance Lease Cost	50		41		158		100
Sublease Income	(113)		(99)		(338)		(521)
Total Net Lease Cost	$	1,559	$	1,958	$	5,292	$	5,844

    Other information about lease amounts recognized in our Condensed Consolidated Statement of Income is summarized as follows:

	September 30, 2020
Weighted Average Lease Term - Operating Leases	3.7 years
Weighted Average Lease Term - Finance Leases	3.4 years
Weighted Average Discount Rate - Operating Leases	8.2	%
Weighted Average Discount Rate - Finance Leases	7.2	%

    At September 30, 2020, our lease liability of $14.0 million does not include certain arrangements, which are primarily airport leases, that do not meet the definition of a lease under Topic 842. Such arrangements represent further commitments of approximately $70.0 million as follows:

Year	Commitments
	(in thousands)
2020 (Remaining six months)	$	6,084
2021	22,784
2022	20,821
2023	20,308
Thereafter	—
Total	$	69,997

    Finance leases range from three to five years and are primarily for office equipment. Rental expense for office and airport facilities and certain equipment subject to operating leases for the nine months ended September 30, 2020 and 2019 was $11.2 million and $28.0 million, respectively. During the third quarter of 2020, each of these airport leases remains subject to force majeure provisions resulting from COVID-19 and the cessation of the Company's airport operations. These monthly rent payments have been temporarily waived until the Company restarts airport operations. It remains uncertain when and under what conditions each payment abatement will end.