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Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

Leases

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $991 and $1,267 for the three months ended June 30, 2020 and 2019, respectively, and was $2,253 and $2,532 for the six months ended June 30, 2020 and 2019, respectively. Short-term operating lease costs was $62 and $47 for the three months ended June 30, 2020 and 2019, respectively, and was $123 and $95 for the six months ended June 30, 2020 and 2019, respectively. Sublease income was $33 and $32 for the three months ended June 30, 2020 and 2019, respectively, and was $67 and $66 for the six months ended June 30, 2020 and 2019, respectively. The future minimum lease payments under our operating leases as of June 30, 2020 are:

Remainder of 2020			$	815
2021			1,395
2022			1,300
2023			465
2024 and thereafter			595
Total minimum lease payments			$	4,570
Less amount representing interest			$	(428)
Present value of net minimum operating lease payments			$	4,142
Less current installments of obligation under current-operating lease liabilities			$	1,339
Obligations under long-term operating lease liabilities, excluding current installments			$	2,803
Weighted-average remaining lease term - operating leases (years)			3.46
Weighted-average discount rate - operating leases			5.50		%

During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. As of June 30, 2020, the gross costs and accumulated amortization associated with this lease are included in revenue generating assets and amounted to $3,068 and $1,065, respectively. Property and equipment under capital leases are stated at the present value of minimum lease payments.

The property and equipment held under this financing lease are amortized on a straight-line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for these capital assets was $109 for both the three months ended June 30, 2020 and 2019 and was $219 for both the six months ended June 30, 2020 and 2019.

The future minimum lease payments under this financing lease as of June 30, 2020 are:

Remainder of 2020			$	312
2021			624
2022			624
2023			45
Total minimum lease payments			$	1,605
Less amount representing interest			$	(14)
Present value of net minimum financing lease payments			$	1,591
Less current installments of obligation under accrued other			$	616
Obligations under other long-term liabilities, excluding current installments			$	975
Weighted-average remaining lease term - finance leases (years)			2.67
Weighted-average discount rate - finance leases			1.53		%

Lessor

The Company enters into leases with certain customers primarily of the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three to five years) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets.

The current portion of the net investment in these leases was $4,322 as of June 30, 2020 and the non-current portion of the net investment in these leases was $7,229 as of June 30, 2020. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $203 and $400 during the three and six months ended June 30, 2020, respectively, and was $163 and $331 during the three and six months ended June 30, 2019.

The future undiscounted cash flows from these leases as of June 30, 2020 are:

Remainder of 2020			$	3,036
2021			3,694
2022			2,776
2023			2,152
2024			1,380
2025			$	206
Total undiscounted cash flows			$	13,244
Present value of lease payments			$	11,551
Difference between undiscounted cash flows and discounted cash flows			$	1,693

Leases

Leases

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $991 and $1,267 for the three months ended June 30, 2020 and 2019, respectively, and was $2,253 and $2,532 for the six months ended June 30, 2020 and 2019, respectively. Short-term operating lease costs was $62 and $47 for the three months ended June 30, 2020 and 2019, respectively, and was $123 and $95 for the six months ended June 30, 2020 and 2019, respectively. Sublease income was $33 and $32 for the three months ended June 30, 2020 and 2019, respectively, and was $67 and $66 for the six months ended June 30, 2020 and 2019, respectively. The future minimum lease payments under our operating leases as of June 30, 2020 are:

Remainder of 2020			$	815
2021			1,395
2022			1,300
2023			465
2024 and thereafter			595
Total minimum lease payments			$	4,570
Less amount representing interest			$	(428)
Present value of net minimum operating lease payments			$	4,142
Less current installments of obligation under current-operating lease liabilities			$	1,339
Obligations under long-term operating lease liabilities, excluding current installments			$	2,803
Weighted-average remaining lease term - operating leases (years)			3.46
Weighted-average discount rate - operating leases			5.50		%

During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. As of June 30, 2020, the gross costs and accumulated amortization associated with this lease are included in revenue generating assets and amounted to $3,068 and $1,065, respectively. Property and equipment under capital leases are stated at the present value of minimum lease payments.

The property and equipment held under this financing lease are amortized on a straight-line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for these capital assets was $109 for both the three months ended June 30, 2020 and 2019 and was $219 for both the six months ended June 30, 2020 and 2019.

The future minimum lease payments under this financing lease as of June 30, 2020 are:

Remainder of 2020			$	312
2021			624
2022			624
2023			45
Total minimum lease payments			$	1,605
Less amount representing interest			$	(14)
Present value of net minimum financing lease payments			$	1,591
Less current installments of obligation under accrued other			$	616
Obligations under other long-term liabilities, excluding current installments			$	975
Weighted-average remaining lease term - finance leases (years)			2.67
Weighted-average discount rate - finance leases			1.53		%

Lessor

The Company enters into leases with certain customers primarily of the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three to five years) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets.

The current portion of the net investment in these leases was $4,322 as of June 30, 2020 and the non-current portion of the net investment in these leases was $7,229 as of June 30, 2020. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $203 and $400 during the three and six months ended June 30, 2020, respectively, and was $163 and $331 during the three and six months ended June 30, 2019.

The future undiscounted cash flows from these leases as of June 30, 2020 are:

Remainder of 2020			$	3,036
2021			3,694
2022			2,776
2023			2,152
2024			1,380
2025			$	206
Total undiscounted cash flows			$	13,244
Present value of lease payments			$	11,551
Difference between undiscounted cash flows and discounted cash flows			$	1,693

Leases

Leases

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $991 and $1,267 for the three months ended June 30, 2020 and 2019, respectively, and was $2,253 and $2,532 for the six months ended June 30, 2020 and 2019, respectively. Short-term operating lease costs was $62 and $47 for the three months ended June 30, 2020 and 2019, respectively, and was $123 and $95 for the six months ended June 30, 2020 and 2019, respectively. Sublease income was $33 and $32 for the three months ended June 30, 2020 and 2019, respectively, and was $67 and $66 for the six months ended June 30, 2020 and 2019, respectively. The future minimum lease payments under our operating leases as of June 30, 2020 are:

Remainder of 2020			$	815
2021			1,395
2022			1,300
2023			465
2024 and thereafter			595
Total minimum lease payments			$	4,570
Less amount representing interest			$	(428)
Present value of net minimum operating lease payments			$	4,142
Less current installments of obligation under current-operating lease liabilities			$	1,339
Obligations under long-term operating lease liabilities, excluding current installments			$	2,803
Weighted-average remaining lease term - operating leases (years)			3.46
Weighted-average discount rate - operating leases			5.50		%

During the first quarter of 2018, the Company entered into a five-year financing lease for three satellite hubs for its HTS network. As of June 30, 2020, the gross costs and accumulated amortization associated with this lease are included in revenue generating assets and amounted to $3,068 and $1,065, respectively. Property and equipment under capital leases are stated at the present value of minimum lease payments.

The property and equipment held under this financing lease are amortized on a straight-line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for these capital assets was $109 for both the three months ended June 30, 2020 and 2019 and was $219 for both the six months ended June 30, 2020 and 2019.

The future minimum lease payments under this financing lease as of June 30, 2020 are:

Remainder of 2020			$	312
2021			624
2022			624
2023			45
Total minimum lease payments			$	1,605
Less amount representing interest			$	(14)
Present value of net minimum financing lease payments			$	1,591
Less current installments of obligation under accrued other			$	616
Obligations under other long-term liabilities, excluding current installments			$	975
Weighted-average remaining lease term - finance leases (years)			2.67
Weighted-average discount rate - finance leases			1.53		%

Lessor

The Company enters into leases with certain customers primarily of the TracPhone mini-VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three to five years) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets.

The current portion of the net investment in these leases was $4,322 as of June 30, 2020 and the non-current portion of the net investment in these leases was $7,229 as of June 30, 2020. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $203 and $400 during the three and six months ended June 30, 2020, respectively, and was $163 and $331 during the three and six months ended June 30, 2019.

The future undiscounted cash flows from these leases as of June 30, 2020 are:

Remainder of 2020			$	3,036
2021			3,694
2022			2,776
2023			2,152
2024			1,380
2025			$	206
Total undiscounted cash flows			$	13,244
Present value of lease payments			$	11,551
Difference between undiscounted cash flows and discounted cash flows			$	1,693

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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- Definition

The entire disclosure of lessor's sales-type leases.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 30
-URI http://asc.fasb.org/subtopic&trid=77888252

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