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Leases

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Leases

The Company has operating leases for office facilities, equipment, and certain satellite service capacity and related equipment. Lease expense was $977 and $1,262 for the three months ended March 31, 2021 and 2020, respectively. Short-term operating lease costs were $57 and $61 for the three months ended March 31, 2021 and 2020, respectively. Sublease income was $34 for both the three months ended March 31, 2021 and 2020. Maturities of lease liabilities as of March 31, 2021 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2021			$	2,758
2022			1,662
2023			762
2024			421
2025 and thereafter			261
Total minimum lease payments			$	5,864
Less amount representing interest			$	(391)
Present value of net minimum operating lease payments			$	5,473
Less current installments of obligation under current-operating lease liabilities			$	2,973
Obligations under long-term operating lease liabilities, excluding current installments			$	2,500
Weighted-average remaining lease term - operating leases (years)			2.34
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. During the first quarter of 2021, the terms of this lease were adjusted and the Company disposed of two satellite hubs in exchange for additional satellite service capacity. As of March 31, 2021, the gross cost and accumulated amortization associated with this lease for the remaining satellite hub is included in revenue generating assets and amounted to $1,268 and $574, 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 the remaining capital asset was $45 for both the three months ended March 31, 2021 and 2020.

The future minimum lease payments under this financing lease as of March 31, 2021 are:

Remainder of 2021			$	198
2022			264
2023			22
Total minimum lease payments			$	484
Less amount representing interest			$	(7)
Present value of net minimum financing lease payments			$	477
Less current installments of obligation under accrued other			$	259
Obligations under other long-term liabilities, excluding current installments			$	218
Weighted-average remaining lease term - finance leases (years)			1.92
Weighted-average discount rate - finance leases			1.53		%

Lessor

The Company enters into leases with certain customers primarily for the TracPhone mini-VSAT Broadband 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 $4,354 as of March 31, 2021 and the non-current portion of the net investment in these leases was $7,351 as of March 31, 2021. 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 $231 and $197 during the three months ended March 31, 2021 and 2020, respectively.

The future undiscounted cash flows from these leases as of March 31, 2021 are:

Remainder of 2021			$	4,153
2022			3,531
2023			2,926
2024			2,028
2025			693
2026			16
Total undiscounted cash flows			$	13,347
Present value of lease payments			$	11,705
Difference between undiscounted cash flows and discounted cash flows			$	1,642

Leases

Leases

The Company has operating leases for office facilities, equipment, and certain satellite service capacity and related equipment. Lease expense was $977 and $1,262 for the three months ended March 31, 2021 and 2020, respectively. Short-term operating lease costs were $57 and $61 for the three months ended March 31, 2021 and 2020, respectively. Sublease income was $34 for both the three months ended March 31, 2021 and 2020. Maturities of lease liabilities as of March 31, 2021 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2021			$	2,758
2022			1,662
2023			762
2024			421
2025 and thereafter			261
Total minimum lease payments			$	5,864
Less amount representing interest			$	(391)
Present value of net minimum operating lease payments			$	5,473
Less current installments of obligation under current-operating lease liabilities			$	2,973
Obligations under long-term operating lease liabilities, excluding current installments			$	2,500
Weighted-average remaining lease term - operating leases (years)			2.34
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. During the first quarter of 2021, the terms of this lease were adjusted and the Company disposed of two satellite hubs in exchange for additional satellite service capacity. As of March 31, 2021, the gross cost and accumulated amortization associated with this lease for the remaining satellite hub is included in revenue generating assets and amounted to $1,268 and $574, 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 the remaining capital asset was $45 for both the three months ended March 31, 2021 and 2020.

The future minimum lease payments under this financing lease as of March 31, 2021 are:

Remainder of 2021			$	198
2022			264
2023			22
Total minimum lease payments			$	484
Less amount representing interest			$	(7)
Present value of net minimum financing lease payments			$	477
Less current installments of obligation under accrued other			$	259
Obligations under other long-term liabilities, excluding current installments			$	218
Weighted-average remaining lease term - finance leases (years)			1.92
Weighted-average discount rate - finance leases			1.53		%

Lessor

The Company enters into leases with certain customers primarily for the TracPhone mini-VSAT Broadband 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 $4,354 as of March 31, 2021 and the non-current portion of the net investment in these leases was $7,351 as of March 31, 2021. 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 $231 and $197 during the three months ended March 31, 2021 and 2020, respectively.

The future undiscounted cash flows from these leases as of March 31, 2021 are:

Remainder of 2021			$	4,153
2022			3,531
2023			2,926
2024			2,028
2025			693
2026			16
Total undiscounted cash flows			$	13,347
Present value of lease payments			$	11,705
Difference between undiscounted cash flows and discounted cash flows			$	1,642

Leases

Leases

The Company has operating leases for office facilities, equipment, and certain satellite service capacity and related equipment. Lease expense was $977 and $1,262 for the three months ended March 31, 2021 and 2020, respectively. Short-term operating lease costs were $57 and $61 for the three months ended March 31, 2021 and 2020, respectively. Sublease income was $34 for both the three months ended March 31, 2021 and 2020. Maturities of lease liabilities as of March 31, 2021 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2021			$	2,758
2022			1,662
2023			762
2024			421
2025 and thereafter			261
Total minimum lease payments			$	5,864
Less amount representing interest			$	(391)
Present value of net minimum operating lease payments			$	5,473
Less current installments of obligation under current-operating lease liabilities			$	2,973
Obligations under long-term operating lease liabilities, excluding current installments			$	2,500
Weighted-average remaining lease term - operating leases (years)			2.34
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. During the first quarter of 2021, the terms of this lease were adjusted and the Company disposed of two satellite hubs in exchange for additional satellite service capacity. As of March 31, 2021, the gross cost and accumulated amortization associated with this lease for the remaining satellite hub is included in revenue generating assets and amounted to $1,268 and $574, 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 the remaining capital asset was $45 for both the three months ended March 31, 2021 and 2020.

The future minimum lease payments under this financing lease as of March 31, 2021 are:

Remainder of 2021			$	198
2022			264
2023			22
Total minimum lease payments			$	484
Less amount representing interest			$	(7)
Present value of net minimum financing lease payments			$	477
Less current installments of obligation under accrued other			$	259
Obligations under other long-term liabilities, excluding current installments			$	218
Weighted-average remaining lease term - finance leases (years)			1.92
Weighted-average discount rate - finance leases			1.53		%

Lessor

The Company enters into leases with certain customers primarily for the TracPhone mini-VSAT Broadband 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 $4,354 as of March 31, 2021 and the non-current portion of the net investment in these leases was $7,351 as of March 31, 2021. 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 $231 and $197 during the three months ended March 31, 2021 and 2020, respectively.

The future undiscounted cash flows from these leases as of March 31, 2021 are:

Remainder of 2021			$	4,153
2022			3,531
2023			2,926
2024			2,028
2025			693
2026			16
Total undiscounted cash flows			$	13,347
Present value of lease payments			$	11,705
Difference between undiscounted cash flows and discounted cash flows			$	1,642

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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