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Leases

12 Months Ended

Dec. 31, 2021

25. Leases

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


Year ended December 31,	2021		2020
Operating lease cost	$	17,932	$	16,927
Finance lease cost
Amortization of leased assets		10,804		9,268
Interest on lease liabilities		814		915
Short-term lease cost		10,046		9,799
Sublease income		(76)		(429)
	$	39,520	$	36,480

The lease expenditure charged to earnings during the year ended December 31, 2021 was $27,978,000 (2020: $26,726,000; 2019: $26,968,000).

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 18 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:


2022		16,493
2023		14,425
2024		10,742
2025		10,613
2026		10,264
Thereafter		97,460
Total future minimum lease payments	$	159,997
less: imputed interest		(37,941)
Total operating lease liability	$	122,056
less: operating lease liability - current		(12,174)
Total operating lease liability - non-current	$	109,882

At December 31, 2021, the weighted average remaining lease term for operating leases is 14.0 years and the weighted average discount rate is 3.7%. In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totaled $2.5 million at December 31, 2021.

25. 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 December 31, 2021, the net carrying amount of computer and yard equipment and other assets under finance leases is $22,238,000 (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 December 31, 2021	Cost		depreciation		value
Auto equipment	$	16,380	$	(6,279)	$	10,101
Computer equipment		13,920		(7,728)		6,192
Yard and others		16,628		(10,683)		5,945
	$	46,928	$	(24,690)	$	22,238


			Accumulated		Net book
As at December 31, 2020	Cost		depreciation		value
Auto equipment	$	13,207	$	(3,439)		9,768
Computer equipment		16,597		(8,317)	$	8,280
Yard and others		15,027		(7,426)		7,601
	$	44,831	$	(19,182)	$	25,649

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


2022	$	9,541
2023		7,276
2024		4,710
2025		1,682
2026		449
Thereafter		—
Total future minimum lease payments	$	23,658
less: imputed interest		(773)
Total finance lease liability	$	22,885
less: finance lease liability - current		(8,902)
Total finance lease liability - non-current	$	13,983

At December 31, 2021, the weighted average remaining lease term for finance leases is 2.9 years and the weighted average discount rate is 3.5%.

Subleases

As at December 31, 2021, the total future minimum sublease payments expected to be received under non-cancellable subleases is $nil (2020: $69,000; 2019: $616,000).