Leases and Other (Tables)

3 Months Ended

Mar. 31, 2021

Summary of Balance Sheet Presentation of Operating and Finance Leases

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

		March 31,		December 31,
(in thousands)	Classification on the Condensed Consolidated Balance Sheet	2021		2020
Assets:
Operating lease assets	Operating lease ROU assets	$	81,488	$	82,739
Finance lease assets ⁽¹⁾	Property and equipment, net		63,934		23,366
Total lease assets		$	145,422	$	106,105

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	14,684	$	15,697
Finance lease obligations	Current portion of debt and finance lease obligations		2,519		2,514
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		72,878		70,150
Finance lease obligations ⁽¹⁾	Long-term debt and finance lease obligations		62,681		20,627
Total lease liabilities		$	152,762	$	108,988

⁽¹⁾	The increase in finance lease assets and obligations is primarily due to the commencement of Pursuit’s new Sky Lagoon attraction in Iceland during the first quarter of 2021, which has a 46-year lease term.

Components of Lease Expense

The components of lease expense consisted of the following:

	Three Months Ended
	March 31,
(in thousands)	2021		2020
Finance lease cost:
Amortization of ROU assets	$	1,070	$	918
Interest on lease liabilities		1,315		417
Operating lease cost		6,270		6,727
Short-term lease cost		261		310
Variable lease cost		942		1,699
Total lease cost, net	$	9,858	$	10,071

Schedule of Other Information Related to Operating and Finance Leases

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

	Three Months Ended
	March 31,
(in thousands)	2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,153		$	6,529
Operating cash flows from finance leases	$	274		$	160
Financing cash flows from finance leases	$	710		$	777
ROU assets obtained in exchange for lease obligations:
Operating leases	$	6,299		$	779
Finance leases		42,907		$	730

	March 31,			December 31,
	2021			2020
Weighted-average remaining lease term (years):
Operating leases		8.21			8.39
Finance leases		35.44			13.97
Weighted-average discount rate:
Operating leases		7.02	%		6.93	%
Finance leases		9.04	%		7.99	%

Schedule of Estimated Future Minimum Lease Payments Under Non-cancellable Leases Excluding Variable Leases and Variable Non-lease Components

As of March 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
Remainder of 2021	$	16,616		$	5,948		$	22,564
2022		16,932			7,927			24,859
2023		13,847			7,407			21,254
2024		11,982			6,735			18,717
2025		10,689			6,204			16,893
Thereafter		52,037			189,245			241,282
Total future lease payments		122,103			223,466			345,569
Less: Amount representing interest		(34,541	)		(158,266	)		(192,807	)
Present value of minimum lease payments		87,562			65,200			152,762
Current portion		14,684			2,519			17,203
Long-term portion	$	72,878		$	62,681		$	135,559

Schedule of Estimated Future Minimum Rentals Under Non-cancellable Leases

As of March 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)
Remainder of 2021	$	1,180
2022		1,088
2023		869
2024		646
2025		493
Thereafter		1,333
Total minimum rents	$	5,609