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Leases

9 Months Ended

Sep. 30, 2021

20. Leases

The Company’s breakdown of lease expense is as follows:


	Three months ended				Nine months ended
	September 30,				September 30,
	2021		2020		2021		2020
Operating lease cost	$	4,592	$	4,310	$	13,584	$	12,780
Finance lease cost
Amortization of leased assets		2,693		2,355		8,096		6,664
Interest on lease liabilities		196		219		622		680
Short-term lease cost		2,845		2,115		7,428		7,146
Sublease income		(15)		(110)		(45)		(406)
	$	10,311	$	8,889	$	29,685	$	26,864

Operating leases

The Company has entered into commercial leases for various auction sites and offices located in North America, Europe, the Middle East, Australia and Asia. The majority of these leases are non-cancellable. The Company also has further operating leases for computer equipment, certain motor vehicles and small office equipment where it is not in the best interest of the Company to purchase these assets.

The majority of the Company’s operating leases have a fixed term with a remaining life between one month and 20 years, with renewal options included in the contracts. The leases have varying contract terms, escalation clauses and renewal options. Generally, there are no restrictions placed upon the lessee by entering into these leases, other than restrictions on use of property, sub-letting and alterations. At the inception of a lease, the Company determines whether it is reasonably certain to exercise a renewal option and includes the options in the determination of the lease term and the lease liability where it is reasonably certain to exercise the option. If the Company’s intention is to exercise an option subsequent to the commencement of the lease, the Company will re-assess the lease term. The Company has included certain renewal options in its operating lease liabilities for key property leases for locations that have strategic importance to the Company, such as its Corporate Head Office. The Company has not included any purchase options available within its operating lease portfolio in its determination of its operating lease liability.

The future aggregate minimum lease payments under non-cancellable operating leases are as follows:


Remainder of 2021	$	3,878
2022		16,285
2023		14,499
2024		11,004
2025		10,871
Thereafter		108,595
Total future minimum lease payments	$	165,132
less: imputed interest		(38,981)
Total operating lease liability	$	126,151
less: operating lease liability - current		(12,083)
Total operating lease liability - non-current	$	114,068

At September 30, 2021, the weighted average remaining lease term for operating leases is 14.1 years and the weighted average discount rate is 3.7%.

20. Leases (continued)

Finance leases

The Company has entered into finance lease arrangements for certain vehicles, computer and yard equipment and office furniture. The majority of the leases have a fixed term with a remaining life of one month to six years with renewal options included in the contracts. In certain of these leases, the Company has the option to purchase the leased asset at fair market value or a stated residual value at the end of the lease term. For certain leases such as vehicle leases, the Company has included renewal options in the determination of its lease liabilities.

As at September 30, 2021, the net carrying amount of computer and yard equipment and other assets under capital leases is $23,531,000 (December 31, 2020: $25,649,000), and is included in the total property, plant and equipment as disclosed on the consolidated balance sheets.

Assets recorded under finance leases are as follows:


			Accumulated		Net book
As at September 30, 2021	Cost		depreciation		value
Computer equipment	$	14,558	$	(7,942)	$	6,616
Yard and others		32,314		(15,399)		16,915
	$	46,872	$	(23,341)	$	23,531


			Accumulated		Net book
As at December 31, 2020	Cost		depreciation		value
Computer equipment	$	16,597	$	(8,317)	$	8,280
Yard and others		28,234		(10,865)		17,369
	$	44,831	$	(19,182)	$	25,649

The future aggregate minimum lease payments under non-cancellable finance leases are as follows:


Remainder of 2021	$	2,651
2022		9,292
2023		6,988
2024		4,434
2025		1,482
Thereafter		281
Total future minimum lease payments	$	25,128
less: imputed interest		(1,163)
Total finance lease liability	$	23,965
less: finance lease liability - current		(9,156)
Total finance lease liability - non-current	$	14,809

At September 30, 2021, the weighted average remaining lease term for finance leases is 3.0 years and the weighted average discount rate is 3.5%.