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Leases

9 Months Ended

Sep. 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 $435 and $1,264 for the three months ended September 30, 2020 and 2019, respectively, and was $2,688 and $3,796 for the nine months ended September 30, 2020 and 2019, respectively. Short-term operating lease costs was $65 and $42 for the three months ended September 30, 2020 and 2019, respectively, and was $188 and $137 for the nine months ended September 30, 2020 and 2019, respectively. Sublease income was $34 and $32 for the three months ended September 30, 2020 and 2019, respectively, and was $101 and $98 for the nine months ended September 30, 2020 and 2019, respectively. The future minimum lease payments under our operating leases as of September 30, 2020 are:

Remainder of 2020			$	409
2021			1,430
2022			1,335
2023			495
2024 and thereafter			612
Total minimum lease payments			$	4,281
Less amount representing interest			$	(385)
Present value of net minimum operating lease payments			$	3,896
Less current installments of obligation under current-operating lease liabilities			$	1,316
Obligations under long-term operating lease liabilities, excluding current installments			$	2,580
Weighted-average remaining lease term - operating leases (years)			3.43
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 September 30, 2020, the gross costs and accumulated amortization associated with this lease are included in revenue generating assets and amounted to $3,068 and $1,174, respectively. The obligation 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 $110 for both the three months ended September 30, 2020 and 2019 and was $329 for both the nine months ended September 30, 2020 and 2019.

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

Remainder of 2020			$	156
2021			624
2022			624
2023			45
Total minimum lease payments			$	1,449
Less amount representing interest			$	(11)
Present value of net minimum financing lease payments			$	1,438
Less current installments of obligation under accrued other			$	617
Obligations under other long-term liabilities, excluding current installments			$	821
Weighted-average remaining lease term - finance leases (years)			2.42
Weighted-average discount rate - finance leases			1.53		%

Lessor

The Company enters into leases with certain customers primarily for 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 $4,308 as of September 30, 2020 and the non-current portion of the net investment in these leases was $7,844 as of September 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 $223 and $623 during the three and nine months ended September 30, 2020, respectively, and was $177 and $508 during the three and nine months ended September 30, 2019.

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

Remainder of 2020			$	1,858
2021			4,106
2022			3,196
2023			2,577
2024			1,793
2025			472
Total undiscounted cash flows			$	14,002
Present value of lease payments			$	12,152
Difference between undiscounted cash flows and discounted cash flows			$	1,850

Leases

Leases

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $435 and $1,264 for the three months ended September 30, 2020 and 2019, respectively, and was $2,688 and $3,796 for the nine months ended September 30, 2020 and 2019, respectively. Short-term operating lease costs was $65 and $42 for the three months ended September 30, 2020 and 2019, respectively, and was $188 and $137 for the nine months ended September 30, 2020 and 2019, respectively. Sublease income was $34 and $32 for the three months ended September 30, 2020 and 2019, respectively, and was $101 and $98 for the nine months ended September 30, 2020 and 2019, respectively. The future minimum lease payments under our operating leases as of September 30, 2020 are:

Remainder of 2020			$	409
2021			1,430
2022			1,335
2023			495
2024 and thereafter			612
Total minimum lease payments			$	4,281
Less amount representing interest			$	(385)
Present value of net minimum operating lease payments			$	3,896
Less current installments of obligation under current-operating lease liabilities			$	1,316
Obligations under long-term operating lease liabilities, excluding current installments			$	2,580
Weighted-average remaining lease term - operating leases (years)			3.43
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 September 30, 2020, the gross costs and accumulated amortization associated with this lease are included in revenue generating assets and amounted to $3,068 and $1,174, respectively. The obligation 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 $110 for both the three months ended September 30, 2020 and 2019 and was $329 for both the nine months ended September 30, 2020 and 2019.

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

Remainder of 2020			$	156
2021			624
2022			624
2023			45
Total minimum lease payments			$	1,449
Less amount representing interest			$	(11)
Present value of net minimum financing lease payments			$	1,438
Less current installments of obligation under accrued other			$	617
Obligations under other long-term liabilities, excluding current installments			$	821
Weighted-average remaining lease term - finance leases (years)			2.42
Weighted-average discount rate - finance leases			1.53		%

Lessor

The Company enters into leases with certain customers primarily for 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 $4,308 as of September 30, 2020 and the non-current portion of the net investment in these leases was $7,844 as of September 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 $223 and $623 during the three and nine months ended September 30, 2020, respectively, and was $177 and $508 during the three and nine months ended September 30, 2019.

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

Remainder of 2020			$	1,858
2021			4,106
2022			3,196
2023			2,577
2024			1,793
2025			472
Total undiscounted cash flows			$	14,002
Present value of lease payments			$	12,152
Difference between undiscounted cash flows and discounted cash flows			$	1,850

Leases

Leases

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $435 and $1,264 for the three months ended September 30, 2020 and 2019, respectively, and was $2,688 and $3,796 for the nine months ended September 30, 2020 and 2019, respectively. Short-term operating lease costs was $65 and $42 for the three months ended September 30, 2020 and 2019, respectively, and was $188 and $137 for the nine months ended September 30, 2020 and 2019, respectively. Sublease income was $34 and $32 for the three months ended September 30, 2020 and 2019, respectively, and was $101 and $98 for the nine months ended September 30, 2020 and 2019, respectively. The future minimum lease payments under our operating leases as of September 30, 2020 are:

Remainder of 2020			$	409
2021			1,430
2022			1,335
2023			495
2024 and thereafter			612
Total minimum lease payments			$	4,281
Less amount representing interest			$	(385)
Present value of net minimum operating lease payments			$	3,896
Less current installments of obligation under current-operating lease liabilities			$	1,316
Obligations under long-term operating lease liabilities, excluding current installments			$	2,580
Weighted-average remaining lease term - operating leases (years)			3.43
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 September 30, 2020, the gross costs and accumulated amortization associated with this lease are included in revenue generating assets and amounted to $3,068 and $1,174, respectively. The obligation 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 $110 for both the three months ended September 30, 2020 and 2019 and was $329 for both the nine months ended September 30, 2020 and 2019.

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

Remainder of 2020			$	156
2021			624
2022			624
2023			45
Total minimum lease payments			$	1,449
Less amount representing interest			$	(11)
Present value of net minimum financing lease payments			$	1,438
Less current installments of obligation under accrued other			$	617
Obligations under other long-term liabilities, excluding current installments			$	821
Weighted-average remaining lease term - finance leases (years)			2.42
Weighted-average discount rate - finance leases			1.53		%

Lessor

The Company enters into leases with certain customers primarily for 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 $4,308 as of September 30, 2020 and the non-current portion of the net investment in these leases was $7,844 as of September 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 $223 and $623 during the three and nine months ended September 30, 2020, respectively, and was $177 and $508 during the three and nine months ended September 30, 2019.

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

Remainder of 2020			$	1,858
2021			4,106
2022			3,196
2023			2,577
2024			1,793
2025			472
Total undiscounted cash flows			$	14,002
Present value of lease payments			$	12,152
Difference between undiscounted cash flows and discounted cash flows			$	1,850

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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