Lease Obligations

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease Obligations

7. Lease Obligations

Effective January 1, 2019, the Company adopted Topic 842. Air Wisconsin leases property and training simulators under operating leases. For leases with durations longer than 12 months, the Company recorded the related operating lease right-of-use asset and operating lease liability at the present value of lease payments over the term. The Company used Air Wisconsin’s incremental borrowing rate to discount the lease payments based on information available at lease conception.

The Company has operating leases for facility space including office space and maintenance facilities. The remaining lease terms for facility space vary from 20 months to 13 years. The Company’s operating leases with lease rates that are variable based on operating costs, use of the facilities or other variable factors are excluded from the Company’s right-of-use assets and operating lease liabilities in accordance with accounting guidance.

As of December 31, 2020, the Company’s right-of-use assets were $8,582, the Company’s current maturities of operating lease liabilities were $1,361, and the Company’s noncurrent lease liabilities were $4,351. During the year ended December 31, 2020, the Company paid $5,398 in operating leases reflected as a reduction from operating cash flows.

The table below presents operating lease related terms and discount rates as of December 31, 2020:

Weighted-average remaining lease term	4.94 years
Weighted-average discount rate	6.99	%

Components of lease costs were as follows for the years ended December 31,

		2020			2019
Operating lease cost	$	9,326		$	27,624
Short-term lease cost		1,662			4,331
Variable lease cost		(994	)		182
Lease termination expense		1,299			19,353
Total lease cost	$	11,293		$	51,490

As of December 31, 2020, Air Wisconsin leased or subleased certain training simulators and facilities for terms of greater than 12 months. Rent expense recorded under these leases was $11,293 and $51,490 in the years ended December 31, 2020 and 2019, respectively. The following table summarizes the future minimum rental payments required under operating leases that had initial or remaining non-cancelable lease terms greater than one year as of December 31, 2020:

Fiscal Year	Amount
2021		1,766
2022		1,778
2023		1,513
2024		1,103
2025		390
Thereafter		579
Total lease payments		7,129
Less imputed interest		(1,417	)
Total lease liabilities	$	5,712