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Leases
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases Leases
The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $927 and $991 for the three months ended June 30, 2021 and 2020, respectively, and was $1,904 and $2,253 for the six months ended June 30, 2021 and 2020, respectively. Short-term operating lease costs were $58 and $62 for the three months ended June 30, 2021 and 2020, respectively, and were $115 and $123 for the six months ended June 30, 2021 and 2020, respectively. Sublease income was $33 for both the three months ended June 30, 2021 and 2020 and was $67 for both the six months ended June 30, 2021 and 2020. Maturities of lease liabilities as of June 30, 2021 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2021$1,832 
20221,663 
2023762 
2024421 
2025 and thereafter260 
Total minimum lease payments$4,938 
Less amount representing interest$(319)
Present value of net minimum operating lease payments$4,619 
Less current installments of obligation under current-operating lease liabilities$2,505 
Obligations under long-term operating lease liabilities, excluding current installments$2,114 
Weighted-average remaining lease term - operating leases (years)2.25
Weighted-average discount rate - operating leases5.50 %

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 June 30, 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 $619, 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 assets was $46 for both the three months ended June 30, 2021 and 2020 and was $91 for both the six months ended June 30, 2021 and 2020.
The future minimum lease payments under this financing lease as of June 30, 2021 are:
Remainder of 2021$132 
2022264 
202322 
Total minimum lease payments$418 
Less amount representing interest$(5)
Present value of net minimum financing lease payments$413 
Less current installments of obligation under accrued other$260 
Obligations under other long-term liabilities, excluding current installments$153 
Weighted-average remaining lease term - finance leases (years)1.67
Weighted-average discount rate - finance leases1.53 %

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 $3,924 as of June 30, 2021 and the non-current portion of the net investment in these leases was $7,186 as of June 30, 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 $221 and $452 during the three and six months ended June 30, 2021, respectively, and was $203 and $400 during the three and six months ended June 30, 2020.

The future undiscounted cash flows from these leases as of June 30, 2021 are:
Remainder of 2021$2,730 
20223,721 
20233,126 
20242,197 
2025835 
202671
Total undiscounted cash flows$12,680 
Present value of lease payments$11,110 
Difference between undiscounted cash flows and discounted cash flows $1,570 
In 2021, the Company entered into three-year leases for its TracPhone mini-VSAT systems, in which ownership of the hardware does not transfer to the lessee by the end of the lease term. As a result, and in light of other factors indicated in ASC 842, these leases are classified as operating leases.

As of June 30, 2021, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $672 and $45, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $31 and $45 for the three and six months ended June 30, 2021, respectively.

Lease revenue recognized was $49 and $73 for the three and six months ended June 30, 2021, respectively.

As of June 30, 2021, minimum future lease payments to be received on the operating leases are as follows:
2021$106 
2022213 
2023212 
202433 
Total $564 
Leases Leases
The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $927 and $991 for the three months ended June 30, 2021 and 2020, respectively, and was $1,904 and $2,253 for the six months ended June 30, 2021 and 2020, respectively. Short-term operating lease costs were $58 and $62 for the three months ended June 30, 2021 and 2020, respectively, and were $115 and $123 for the six months ended June 30, 2021 and 2020, respectively. Sublease income was $33 for both the three months ended June 30, 2021 and 2020 and was $67 for both the six months ended June 30, 2021 and 2020. Maturities of lease liabilities as of June 30, 2021 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2021$1,832 
20221,663 
2023762 
2024421 
2025 and thereafter260 
Total minimum lease payments$4,938 
Less amount representing interest$(319)
Present value of net minimum operating lease payments$4,619 
Less current installments of obligation under current-operating lease liabilities$2,505 
Obligations under long-term operating lease liabilities, excluding current installments$2,114 
Weighted-average remaining lease term - operating leases (years)2.25
Weighted-average discount rate - operating leases5.50 %

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 June 30, 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 $619, 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 assets was $46 for both the three months ended June 30, 2021 and 2020 and was $91 for both the six months ended June 30, 2021 and 2020.
The future minimum lease payments under this financing lease as of June 30, 2021 are:
Remainder of 2021$132 
2022264 
202322 
Total minimum lease payments$418 
Less amount representing interest$(5)
Present value of net minimum financing lease payments$413 
Less current installments of obligation under accrued other$260 
Obligations under other long-term liabilities, excluding current installments$153 
Weighted-average remaining lease term - finance leases (years)1.67
Weighted-average discount rate - finance leases1.53 %

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 $3,924 as of June 30, 2021 and the non-current portion of the net investment in these leases was $7,186 as of June 30, 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 $221 and $452 during the three and six months ended June 30, 2021, respectively, and was $203 and $400 during the three and six months ended June 30, 2020.

The future undiscounted cash flows from these leases as of June 30, 2021 are:
Remainder of 2021$2,730 
20223,721 
20233,126 
20242,197 
2025835 
202671
Total undiscounted cash flows$12,680 
Present value of lease payments$11,110 
Difference between undiscounted cash flows and discounted cash flows $1,570 
In 2021, the Company entered into three-year leases for its TracPhone mini-VSAT systems, in which ownership of the hardware does not transfer to the lessee by the end of the lease term. As a result, and in light of other factors indicated in ASC 842, these leases are classified as operating leases.

As of June 30, 2021, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $672 and $45, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $31 and $45 for the three and six months ended June 30, 2021, respectively.

Lease revenue recognized was $49 and $73 for the three and six months ended June 30, 2021, respectively.

As of June 30, 2021, minimum future lease payments to be received on the operating leases are as follows:
2021$106 
2022213 
2023212 
202433 
Total $564 
Leases Leases
The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $927 and $991 for the three months ended June 30, 2021 and 2020, respectively, and was $1,904 and $2,253 for the six months ended June 30, 2021 and 2020, respectively. Short-term operating lease costs were $58 and $62 for the three months ended June 30, 2021 and 2020, respectively, and were $115 and $123 for the six months ended June 30, 2021 and 2020, respectively. Sublease income was $33 for both the three months ended June 30, 2021 and 2020 and was $67 for both the six months ended June 30, 2021 and 2020. Maturities of lease liabilities as of June 30, 2021 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2021$1,832 
20221,663 
2023762 
2024421 
2025 and thereafter260 
Total minimum lease payments$4,938 
Less amount representing interest$(319)
Present value of net minimum operating lease payments$4,619 
Less current installments of obligation under current-operating lease liabilities$2,505 
Obligations under long-term operating lease liabilities, excluding current installments$2,114 
Weighted-average remaining lease term - operating leases (years)2.25
Weighted-average discount rate - operating leases5.50 %

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 June 30, 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 $619, 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 assets was $46 for both the three months ended June 30, 2021 and 2020 and was $91 for both the six months ended June 30, 2021 and 2020.
The future minimum lease payments under this financing lease as of June 30, 2021 are:
Remainder of 2021$132 
2022264 
202322 
Total minimum lease payments$418 
Less amount representing interest$(5)
Present value of net minimum financing lease payments$413 
Less current installments of obligation under accrued other$260 
Obligations under other long-term liabilities, excluding current installments$153 
Weighted-average remaining lease term - finance leases (years)1.67
Weighted-average discount rate - finance leases1.53 %

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 $3,924 as of June 30, 2021 and the non-current portion of the net investment in these leases was $7,186 as of June 30, 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 $221 and $452 during the three and six months ended June 30, 2021, respectively, and was $203 and $400 during the three and six months ended June 30, 2020.

The future undiscounted cash flows from these leases as of June 30, 2021 are:
Remainder of 2021$2,730 
20223,721 
20233,126 
20242,197 
2025835 
202671
Total undiscounted cash flows$12,680 
Present value of lease payments$11,110 
Difference between undiscounted cash flows and discounted cash flows $1,570 
In 2021, the Company entered into three-year leases for its TracPhone mini-VSAT systems, in which ownership of the hardware does not transfer to the lessee by the end of the lease term. As a result, and in light of other factors indicated in ASC 842, these leases are classified as operating leases.

As of June 30, 2021, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $672 and $45, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $31 and $45 for the three and six months ended June 30, 2021, respectively.

Lease revenue recognized was $49 and $73 for the three and six months ended June 30, 2021, respectively.

As of June 30, 2021, minimum future lease payments to be received on the operating leases are as follows:
2021$106 
2022213 
2023212 
202433 
Total $564