Leases

9 Months Ended

Sep. 30, 2021

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, 2021, the maturity of lease liabilities under Topic 842 "Leases" are as follows:

Year	Operating Leases		Financing Leases		Total
	(in thousands)
2021 (Remaining three months)	$	909	$	57	$	966
2022	3,606		199		3,805
2023	3,215		139		3,354
2024	1,853		114		1,967
2025	1,242		4		1,246
Thereafter	1,564		—		1,564
Total	12,389		513		12,902
Less: present value discount*	(1,206)		(39)		(1,245)
Present value of lease liabilities	11,183		474		11,657
Less: current portion of lease liabilities	(3,172)		(192)		(3,364)
Total long-term lease liabilities	$	8,011	$	282	$	8,293
* 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 $11.0 million and $12.4 million as of September 30, 2021, and December 31, 2020, 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,
	2021		2020		2021		2020
	(in thousands)				(in thousands)
Operating Lease Cost	$	1,109	$	1,622	$	3,873	$	5,472
Finance Lease Cost:
Amortization of Lease Assets	48		41		146		128
Interest on Lease Liabilities	8		9		27		30
Finance Lease Cost	56		50		173		158
Sublease Income	(34)		(113)		(95)		(338)
Total Net Lease Cost	$	1,131	$	1,559	$	3,951	$	5,292

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

	September 30, 2021
Weighted Average Lease Term - Operating Leases	4.4 years
Weighted Average Lease Term - Finance Leases	2.8 years
Weighted Average Discount Rate - Operating Leases	7.1	%
Weighted Average Discount Rate - Finance Leases	6.6	%

    At September 30, 2021, our lease liability of $11.7 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 $39.3 million as follows:

Year	Commitments
	(in thousands)
2021 (Remaining three months)	$	4,484
2022	17,694
2023	17,081
Thereafter	—
Total	$	39,259

    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, 2021 and 2020 was $7.3 million and $11.2 million, respectively. During the third quarter of 2021, 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, 2021, the maturity of lease liabilities under Topic 842 "Leases" are as follows:

Year	Operating Leases		Financing Leases		Total
	(in thousands)
2021 (Remaining three months)	$	909	$	57	$	966
2022	3,606		199		3,805
2023	3,215		139		3,354
2024	1,853		114		1,967
2025	1,242		4		1,246
Thereafter	1,564		—		1,564
Total	12,389		513		12,902
Less: present value discount*	(1,206)		(39)		(1,245)
Present value of lease liabilities	11,183		474		11,657
Less: current portion of lease liabilities	(3,172)		(192)		(3,364)
Total long-term lease liabilities	$	8,011	$	282	$	8,293
* 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 $11.0 million and $12.4 million as of September 30, 2021, and December 31, 2020, 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,
	2021		2020		2021		2020
	(in thousands)				(in thousands)
Operating Lease Cost	$	1,109	$	1,622	$	3,873	$	5,472
Finance Lease Cost:
Amortization of Lease Assets	48		41		146		128
Interest on Lease Liabilities	8		9		27		30
Finance Lease Cost	56		50		173		158
Sublease Income	(34)		(113)		(95)		(338)
Total Net Lease Cost	$	1,131	$	1,559	$	3,951	$	5,292

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

	September 30, 2021
Weighted Average Lease Term - Operating Leases	4.4 years
Weighted Average Lease Term - Finance Leases	2.8 years
Weighted Average Discount Rate - Operating Leases	7.1	%
Weighted Average Discount Rate - Finance Leases	6.6	%

    At September 30, 2021, our lease liability of $11.7 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 $39.3 million as follows:

Year	Commitments
	(in thousands)
2021 (Remaining three months)	$	4,484
2022	17,694
2023	17,081
Thereafter	—
Total	$	39,259

    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, 2021 and 2020 was $7.3 million and $11.2 million, respectively. During the third quarter of 2021, 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.