Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Note 16: Commitments and Contingencies

The Company leases office facilities and certain equipment necessary to maintain its information technology infrastructure. Rent expense, net of sublease income, under the Company’s operating lease agreements was $2.2 million, $2.5 million and $2.6 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company also leases automobiles under capital leases expiring at various dates through 2021. The Company assesses these leases as they come due as to whether it should purchase, enter into new capital leases, or enter into operating leases.

Assets held under capital leases are included in Property and equipment, net on the Consolidated Balance Sheets and include the following:


Dollars in thousands	December 31, 2021		December 31, 2020
Gross property and equipment	$	11,380	$	10,677
Accumulated depreciation		(7,285)		(5,204)
Net property and equipment	$	4,095	$	5,473

As of December 31, 2021, the Company’s future minimum lease payments under contractual lease obligations are as follows:


	Capital		Operating
Dollars in thousands	Leases		Leases(1)
2022	$	2,116	$	3,527
2023		1,010		3,045
2024		387		2,244
2025		144		1,687
2026 & Thereafter		—		—
Total minimum lease commitments	$	3,657	$	10,503
Less: Current portion of capital lease obligations		(2,116)
Long-term portion of capital lease obligations	$	1,541

(1)	Includes all operating leases having an initial or remaining non-cancelable lease term in excess of one year.

Content License Agreements

The Company licenses minimum quantities of theatrical and direct-to-video titles under licensing agreements with certain movie content providers.

Total estimated movie content commitments under the terms of the Company’s content license agreements in effect as of December 31, 2021 is presented in the following table:


Dollars in thousands	Total		2022		2023
Minimum estimated movie content commitments	$	23,969	$	19,860	$	4,109

Legal Matters

From time to time the Company is involved in legal proceedings incidental to the conduct of its business. The Company does not believe that any liability that may result from these proceedings will have a material adverse effect on its consolidated financial statements. During 2020, the Company received $7.0 million in connection with a class action settlement specific to credit card fees, which were included in Direct Operating expenses in the Consolidated Statements of Operations.