Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

The Company adopted ASU 2016-02, Leases (Topic 842) effective January 1, 2019, using a modified retrospective method and did not restate comparative periods. The Company elected to adopt the package of practical expedients; accordingly, the Company retained the lease classification and initial direct costs for any leases that existed prior to adoption and we did not revisit whether any existing or expired contracts contain leases. The Company has operating and finance leases for office space, retail, data centers and certain office equipment with expiration dates ranging through 2032, with various renewal options. Only renewal options that were reasonably assured to be exercised are included in the lease liability. As of December 31, 2022, the maturity of lease liabilities under Topic 842 are as follows:

Year	Operating Leases		Financing Leases		Total
	(In thousands)
2023	$	3,877	$	158	$	4,035
2024	2,612		133		2,745
2025	1,994		19		2,013
2026	1,292		—		1,292
2027	590		—		590
Thereafter	1,069		—		1,069
Total	11,434		310		11,744
Less: present value discount*	(1,467)		(16)		(1,483)
Present value of lease liabilities	9,967		294		10,261
Less: current portion of lease liabilities	(3,354)		(147)		(3,501)
Total long-term lease liabilities	$	6,612	$	147	$	6,759
* The discount rate used was the relevant incremental borrowing rate in each of the jurisdictions wherein the leased properties are located

The company's net assets recorded under operating and finance leases were $9.6 million as of December 31, 2022. The lease cost recognized in our consolidated statements of income in the category of general and administrative, is summarized as follows:

	Year Ended December 31,
(In thousands)	2022		2021
Operating Lease Cost	$	4,077	$	4,860
Finance Lease Cost:
Amortization of Lease Assets	175		194
Interest on Lease liabilities	23		35
Finance Lease Cost	198		229
Sublease Income	(93)		(118)
Total Net Lease Cost	$	4,182	$	4,971

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

	December 31, 2022
Weighted Average Lease Term - Operating Leases	4.08 years
Weighted Average Lease Term - Finance Leases	2.02 years
Weighted Average Discount Rate - Operating Leases	8.05	%
Weighted Average Discount Rate - Finance Leases	5.77	%

Commitments for minimum rentals under non-cancellable leases, under the legacy guidance in ASC 840 as of December 31, 2022 were as follows:

Year	Operating Leases		Financing Leases
	(In thousands)
2023	$	3,877	$	158
2024	2,612		133
2025	1,994		19
2026	1,292		—
2027	590		—
Thereafter	1,069		—
Total	$	11,434	$	310
Less: sublease income	(93)
Net lease payments	$	11,341
Less: amount representing interest			23
Present value of obligations under financing leases			$	333
Less: current portion			(147)
Long-term obligations			$	186

As of December 31, 2022, our lease liability of $10.3 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 $17.1 million as follows:

Year	Commitments
	(In thousands)
2023	$	12,593
2024	2,954
Thereafter	1,557
Total	$	17,104

    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 period ended December 31, 2022 and 2021 was

$18.6 million and $10.5 million, respectively. The year over year increase in this rent expense is a result the Company restarting more normal airport operations in India, including re-opening airport locations that were closed during the COVID-19 pandemic.

Leases

Leases

The Company adopted ASU 2016-02, Leases (Topic 842) effective January 1, 2019, using a modified retrospective method and did not restate comparative periods. The Company elected to adopt the package of practical expedients; accordingly, the Company retained the lease classification and initial direct costs for any leases that existed prior to adoption and we did not revisit whether any existing or expired contracts contain leases. The Company has operating and finance leases for office space, retail, data centers and certain office equipment with expiration dates ranging through 2032, with various renewal options. Only renewal options that were reasonably assured to be exercised are included in the lease liability. As of December 31, 2022, the maturity of lease liabilities under Topic 842 are as follows:

Year	Operating Leases		Financing Leases		Total
	(In thousands)
2023	$	3,877	$	158	$	4,035
2024	2,612		133		2,745
2025	1,994		19		2,013
2026	1,292		—		1,292
2027	590		—		590
Thereafter	1,069		—		1,069
Total	11,434		310		11,744
Less: present value discount*	(1,467)		(16)		(1,483)
Present value of lease liabilities	9,967		294		10,261
Less: current portion of lease liabilities	(3,354)		(147)		(3,501)
Total long-term lease liabilities	$	6,612	$	147	$	6,759
* The discount rate used was the relevant incremental borrowing rate in each of the jurisdictions wherein the leased properties are located

The company's net assets recorded under operating and finance leases were $9.6 million as of December 31, 2022. The lease cost recognized in our consolidated statements of income in the category of general and administrative, is summarized as follows:

	Year Ended December 31,
(In thousands)	2022		2021
Operating Lease Cost	$	4,077	$	4,860
Finance Lease Cost:
Amortization of Lease Assets	175		194
Interest on Lease liabilities	23		35
Finance Lease Cost	198		229
Sublease Income	(93)		(118)
Total Net Lease Cost	$	4,182	$	4,971

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

	December 31, 2022
Weighted Average Lease Term - Operating Leases	4.08 years
Weighted Average Lease Term - Finance Leases	2.02 years
Weighted Average Discount Rate - Operating Leases	8.05	%
Weighted Average Discount Rate - Finance Leases	5.77	%

Commitments for minimum rentals under non-cancellable leases, under the legacy guidance in ASC 840 as of December 31, 2022 were as follows:

Year	Operating Leases		Financing Leases
	(In thousands)
2023	$	3,877	$	158
2024	2,612		133
2025	1,994		19
2026	1,292		—
2027	590		—
Thereafter	1,069		—
Total	$	11,434	$	310
Less: sublease income	(93)
Net lease payments	$	11,341
Less: amount representing interest			23
Present value of obligations under financing leases			$	333
Less: current portion			(147)
Long-term obligations			$	186

As of December 31, 2022, our lease liability of $10.3 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 $17.1 million as follows:

Year	Commitments
	(In thousands)
2023	$	12,593
2024	2,954
Thereafter	1,557
Total	$	17,104

    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 period ended December 31, 2022 and 2021 was

$18.6 million and $10.5 million, respectively. The year over year increase in this rent expense is a result the Company restarting more normal airport operations in India, including re-opening airport locations that were closed during the COVID-19 pandemic.