Leases and Other

12 Months Ended

Dec. 31, 2021

Note 20. Leases and Other

The balance sheet presentation of our operating and finance leases is as follows:


		December 31,
(in thousands)	Classification on the Consolidated Balance Sheet	2021		2020
Assets:
Operating lease assets	Operating lease ROU assets	$	95,915	$	82,739
Finance lease assets(1)	Property and equipment, net		61,022		23,366
Total lease assets		$	156,937	$	106,105

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	12,451	$	15,697
Finance lease obligations	Current portion of debt and finance obligations		2,928		2,514
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		93,406		70,150
Finance lease obligations(1)	Long-term debt and finance obligations		60,473		20,627
Total lease liabilities		$	169,258	$	108,988

(1)

The increase in finance lease assets and obligations is primarily due to the commencement of Pursuit’s Sky Lagoon attraction in Iceland during the first quarter of 2021, which has a 46-year lease term.

The components of lease expense consisted of the following:


	Year Ended December 31,
(in thousands)	2021		2020
Finance lease cost:
Amortization of ROU assets	$	4,280	$	3,662
Interest on lease liabilities		5,580		1,668
Operating lease cost		23,129		27,259
Short-term lease cost		1,444		701
Variable lease cost		4,372		5,672
Total lease cost, net	$	38,805	$	38,962

Other information related to operating and finance leases are as follows:


	Year Ended December 31,
(in thousands)	2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	23,320		$	26,250
Operating cash flows from finance leases	$	3,926		$	1,948
Financing cash flows from finance leases	$	3,223		$	3,543
ROU assets obtained in exchange for lease obligations:
Operating leases	$	38,838		$	659
Finance leases	$	43,241		$	2,141



	December 31,
	2021			2020
Weighted-average remaining lease term (years):
Operating leases		8.54			8.39
Finance leases		34.95			13.97
Weighted-average discount rate:
Operating leases		6.86	%		6.93	%
Finance leases		9.06	%		7.99	%

As of December 31, 2021, the estimated future minimum lease payments under non-cancellable leases, excluding variable leases and variable non-lease components, are as follows:


(in thousands)	Operating Leases			Finance Leases			Total
2022	$	21,393		$	8,445		$	29,838
2023		18,880			7,926			26,806
2024		17,215			6,858			24,073
2025		15,715			6,179			21,894
2026		15,208			5,971			21,179
Thereafter		57,297			183,142			240,439
Total future lease payments		145,708			218,521			364,229
Less: Amount representing interest		(39,851	)		(155,120	)		(194,971	)
Present value of minimum lease payments		105,857			63,401			169,258
Current portion		12,451			2,928			15,379
Long-term portion	$	93,406		$	60,473		$	153,879

As of December 31, 2021, the estimated future minimum rental income under non-cancellable leases, which includes rental income from facilities that we own, are as follows:


(in thousands)
2022	$	1,295
2023		1,074
2024		850
2025		696
2026		535
Thereafter		924
Total minimum rents	$	5,374

Leases Not Yet Commenced

As of December 31, 2021, we had executed two facility leases for which we did not have control of the underlying assets. Accordingly, we did not record the lease liabilities and ROU assets on our Consolidated Balance Sheets. These leases are for two new FlyOver attractions in development, FlyOver Chicago and FlyOver Canada Toronto. We expect the lease commencement dates to begin in fiscal year 2022 with a lease term of 20 years for both leases.