A large portion of the Company’s revenues are generated on cruise ships. The Company has entered into agreements of varying terms with the cruise lines under which services and products are paid for by cruise passengers. These agreements provide for the Company to pay the cruise line commissions for use of their shipboard facilities, as well as fees for staff shipboard meals and accommodations. These commissions are based on a percentage of revenue, a minimum annual amount, or a combination of both. Some of the minimum commissions are calculated as a flat dollar amount while others are based upon minimum passenger per diems for passengers actually embarked on each cruise of the respective vessel. Staff shipboard meals and accommodations are charged by the cruise lines on a per staff per day basis. The Company recognizes all expenses related to cruise line commissions, minimum guarantees, and staff shipboard meals and accommodations, generally, as they are incurred and includes such expenses in cost of revenues and operating expenses in the accompanying consolidated and combined statements of operations. For cruises in process at period end, an accrual is made to record such expenses in a manner that approximates a pro-rata basis. In addition, staff-related expenses such as shipboard employee commissions are recognized in the same manner.

Pursuant to agreements that provide for minimum commissions, the Company guaranteed total minimum payments to cruise line (excluding payments based on minimum amounts per passenger per day of a cruise applicable to certain ships served by us. As of December 31, 2020, there were no minimum payment guarantee amounts as a result of our cruise lines partners cessation in guest cruise operations during 2020.

Revenues from passengers of each of the following cruise line companies accounted for more than ten percent of the Company’s total revenues in 2020 and 2019 periods from March 20, 2019 to December 31, 2019 (Successor), January 1, 2019 to March 19, 2019 (Predecessor) and the year ended December 31, 2018 (Predecessor), respectively: Carnival (including Carnival, Carnival Australia, Costa, Holland America, P&O, Princess and Seabourn cruise lines): 43.4%, 46.7%, 46.7%, and 48.5% ; Royal Caribbean (including Royal Caribbean, Pullmantur, Celebrity, Azamara and Silversea cruise lines): 20.9%, 22.7%, 24.6% and 21.0% ; and Norwegian Cruise Line (including Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises) 16.3%, 15.2%, 12.9% and 13.8%.

The Company leases office and warehouse space, as well as office equipment and automobiles, under operating leases. The Company also makes certain payments to the owners of the venues where destination resort health and wellness centers are located. Destination resort health and wellness centers generally require rent based on a percentage of revenues, with some locations having escalating percentages at different revenue amounts. In addition, as part of the rental arrangements for some of the destination resort health and wellness centers, the Company is required to pay a minimum annual rental regardless of whether such amount would be required to be paid under the percentage rent arrangement. Substantially all of these arrangements include renewal options ranging from three to five years.

Successor					Predecessor
Consolidated					Combined

	Year Ended December 31, 2020		March 20, 2019 to December 31, 2019		January 1, 2019 to March 19, 2019		Year Ended December 31, 2018

Minimum rentals	$	3,791	$	5,173	$	1,573	$	7,087
Contingent rentals		1,703		2,039		689		2,450
	$	5,494	$	7,212	$	2,262	$	9,537

Minimum annual commitments under operating leases at December 31, 2020 are as follows (in thousands):

Year	Amount
2021	$	3,194
2022		2,867
2023		2,506
2024		2,560
2025		2,619
Thereafter		9,370
	$	23,116