Leases and Other (Tables)

6 Months Ended

Jun. 30, 2021

Summary of Balance Sheet Presentation of Operating and Finance Leases

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

		June 30,		December 31,
(in thousands)	Classification on the Condensed Consolidated Balance Sheet	2021		2020
Assets:
Operating lease assets	Operating lease ROU assets	$	84,175	$	82,739
Finance lease assets ⁽¹⁾	Property and equipment, net		64,197		23,366
Total lease assets		$	148,372	$	106,105

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	11,422	$	15,697
Finance lease obligations	Current portion of debt and finance lease obligations		2,502		2,514
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		81,727		70,150
Finance lease obligations ⁽¹⁾	Long-term debt and finance lease obligations		63,733		20,627
Total lease liabilities		$	159,384	$	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				Six Months Ended
	June 30,				June 30,
(in thousands)	2021		2020		2021		2020
Finance lease cost:
Amortization of ROU assets	$	1,068	$	923	$	2,138	$	1,841
Interest on lease liabilities		1,473		412		2,788		829
Operating lease cost		5,893		6,912		12,163		13,639
Short-term lease cost		198		32		459		342
Variable lease cost		1,092		1,359		2,034		3,058
Total lease cost, net	$	9,724	$	9,638	$	19,582	$	19,709

Schedule of Other Information Related to Operating and Finance Leases

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2021		2020		2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,460	$	6,095	$	12,613		$	12,624
Operating cash flows from finance leases	$	933	$	706	$	1,207		$	866
Financing cash flows from finance leases	$	684	$	793	$	1,394		$	1,570
ROU assets obtained in exchange for lease obligations:
Operating leases	$	12,636	$	3,298	$	18,935		$	4,077
Finance leases	$	—	$	1,038	$	41,709		$	1,768

					June 30,			December 31,
					2021			2020
Weighted-average remaining lease term (years):
Operating leases						8.79			8.39
Finance leases						35.21			13.97
Weighted-average discount rate:
Operating leases						7.22	%		6.93	%
Finance leases						9.05	%		7.99	%

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

As of June 30, 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	$	9,658		$	4,231		$	13,889
2022		17,683			7,987			25,670
2023		15,618			7,468			23,086
2024		13,806			6,789			20,595
2025		12,550			6,252			18,802
Thereafter		63,932			191,984			255,916
Total future lease payments		133,247			224,711			357,958
Less: Amount representing interest		(40,098	)		(158,476	)		(198,574	)
Present value of minimum lease payments		93,149			66,235			159,384
Current portion		11,422			2,502			13,924
Long-term portion	$	81,727		$	63,733		$	145,460

Schedule of Estimated Future Minimum Rentals Under Non-cancellable Leases

As of June 30, 2021, the estimated future minimum rental income under non-cancellable leases, which includes rental income from facilities that we own, is as follows:

(in thousands)
Remainder of 2021	$	761
2022		1,115
2023		890
2024		662
2025		506
Thereafter		1,369
Total minimum rents	$	5,303