Leases

9 Months Ended

Sep. 30, 2022

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, 2022, the maturity of lease liabilities under Topic 842 "Leases" are as follows:

Year	Operating Leases		Financing Leases		Total
	(in thousands)
2022 (Remaining three months)	$	987	$	47	$	1,034
2023	3,633		158		3,791
2024	2,360		133		2,493
2025	1,749		19		1,768
2026	1,047		—		1,047
Thereafter	1,505		—		1,505
Total	11,281		357		11,638
Less: present value discount*	(1,397)		(20)		(1,417)
Present value of lease liabilities	9,884		337		10,221
Less: current portion of lease liabilities	(3,313)		(156)		(3,469)
Total long-term lease liabilities	$	6,571	$	181	$	6,752
* 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 $9.6 million and $10.1 million as of September 30, 2022, and December 31, 2021, respectively. The lease cost is recognized in our condensed consolidated statements of income in the category of general and administrative and is summarized as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)				(in thousands)
Operating Lease Cost	$	1,001	$	1,109	$	2,980	$	3,873
Finance Lease Cost:
Amortization of Lease Assets	41		48		135		146
Interest on Lease Liabilities	5		8		18		27
Finance Lease Cost	46		56		153		173
Sublease Income	(23)		(34)		(69)		(95)
Total Net Lease Cost	$	1,024	$	1,131	$	3,064	$	3,951

    Other information about lease amounts recognized in our condensed consolidated statement of income is summarized as follows:

	September 30, 2022
Weighted Average Lease Term - Operating Leases	4.1 years
Weighted Average Lease Term - Finance Leases	2.2 years
Weighted Average Discount Rate - Operating Leases	7.9	%
Weighted Average Discount Rate - Finance Leases	6.0	%

    At September 30, 2022, our lease liability of $10.2 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 $19.4 million as follows:

Year	Commitments
	(in thousands)
2022 (Remaining three months)	$	3,924
2023	15,497
Thereafter	—
Total	$	19,421

    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, 2022 and 2021 was $11.9 million and $7.3 million, respectively. During the third quarter of 2022, the airport leases remain subject to concessional rent abatements/reductions until the Company fully restarts its airport operations. The concessional rent abatements/reductions has been granted on the basis of low passenger traffic counts, which is due to various restrictions resulting from COVID-19. It remains uncertain when and under what conditions each payment abatement/reduction 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, 2022, the maturity of lease liabilities under Topic 842 "Leases" are as follows:

Year	Operating Leases		Financing Leases		Total
	(in thousands)
2022 (Remaining three months)	$	987	$	47	$	1,034
2023	3,633		158		3,791
2024	2,360		133		2,493
2025	1,749		19		1,768
2026	1,047		—		1,047
Thereafter	1,505		—		1,505
Total	11,281		357		11,638
Less: present value discount*	(1,397)		(20)		(1,417)
Present value of lease liabilities	9,884		337		10,221
Less: current portion of lease liabilities	(3,313)		(156)		(3,469)
Total long-term lease liabilities	$	6,571	$	181	$	6,752
* 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 $9.6 million and $10.1 million as of September 30, 2022, and December 31, 2021, respectively. The lease cost is recognized in our condensed consolidated statements of income in the category of general and administrative and is summarized as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)				(in thousands)
Operating Lease Cost	$	1,001	$	1,109	$	2,980	$	3,873
Finance Lease Cost:
Amortization of Lease Assets	41		48		135		146
Interest on Lease Liabilities	5		8		18		27
Finance Lease Cost	46		56		153		173
Sublease Income	(23)		(34)		(69)		(95)
Total Net Lease Cost	$	1,024	$	1,131	$	3,064	$	3,951

    Other information about lease amounts recognized in our condensed consolidated statement of income is summarized as follows:

	September 30, 2022
Weighted Average Lease Term - Operating Leases	4.1 years
Weighted Average Lease Term - Finance Leases	2.2 years
Weighted Average Discount Rate - Operating Leases	7.9	%
Weighted Average Discount Rate - Finance Leases	6.0	%

    At September 30, 2022, our lease liability of $10.2 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 $19.4 million as follows:

Year	Commitments
	(in thousands)
2022 (Remaining three months)	$	3,924
2023	15,497
Thereafter	—
Total	$	19,421

    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, 2022 and 2021 was $11.9 million and $7.3 million, respectively. During the third quarter of 2022, the airport leases remain subject to concessional rent abatements/reductions until the Company fully restarts its airport operations. The concessional rent abatements/reductions has been granted on the basis of low passenger traffic counts, which is due to various restrictions resulting from COVID-19. It remains uncertain when and under what conditions each payment abatement/reduction will end.