XML 34 R24.htm IDEA: XBRL DOCUMENT v3.22.1
Leases
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Leases Leases
Lessee

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $544 and $977 for the three months ended March 31, 2022 and 2021, respectively. Short-term operating lease costs were $55 and $57 for the three months ended March 31, 2022 and 2021, respectively. Sublease income was $35 and $34 for the three months ended March 31, 2022 and 2021, respectively. Maturities of lease liabilities as of March 31, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2022$1,456 
2023780 
2024392 
202514 
Total minimum lease payments$2,642 
Less amount representing interest$(130)
Present value of net minimum operating lease payments$2,512 
Less current installments of obligation under current-operating lease liabilities$1,571 
Obligations under long-term operating lease liabilities, excluding current installments$941 
Weighted-average remaining lease term - operating leases (years)1.74
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 discontinued use of two satellite hubs and was released from the related payment obligation in exchange for additional satellite service capacity. As of March 31, 2022, 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 $755, 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 $45 for both the three months ended March 31, 2022 and 2021.

The future minimum lease payments under this financing lease as of March 31, 2022 are:
Remainder of 2022$198 
202322 
Total minimum lease payments$220 
Less amount representing interest$(2)
Present value of net minimum financing lease payments$218 
Less current installments of obligation under accrued other$218 
Obligations under other long-term liabilities, excluding current installments$— 
Weighted-average remaining lease term - finance leases (years)0.92
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 product 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 $3,813 as of March 31, 2022 and the non-current portion of the net investment in these leases was $6,119 as of March 31, 2022. 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 $207 and $231 during the three months ended March 31, 2022 and 2021, respectively.

The future undiscounted cash flows from these leases as of March 31, 2022 are:
Remainder of 2022$3,487 
20233,526 
20242,598 
20251,214 
2026393 
20277
Total undiscounted cash flows$11,225 
Present value of lease payments$9,932 
Difference between undiscounted cash flows and discounted cash flows $1,293 

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 March 31, 2022, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $1,735 and $236, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $82 for the three months ended March 31, 2022.

Lease revenue recognized was $126 for the three months ended March 31, 2022.

As of March 31, 2022, minimum future lease payments to be recognized on the operating leases are as follows:
2022$396 
2023527 
2024321 
202513 
Total $1,257 
Leases Leases
Lessee

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $544 and $977 for the three months ended March 31, 2022 and 2021, respectively. Short-term operating lease costs were $55 and $57 for the three months ended March 31, 2022 and 2021, respectively. Sublease income was $35 and $34 for the three months ended March 31, 2022 and 2021, respectively. Maturities of lease liabilities as of March 31, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2022$1,456 
2023780 
2024392 
202514 
Total minimum lease payments$2,642 
Less amount representing interest$(130)
Present value of net minimum operating lease payments$2,512 
Less current installments of obligation under current-operating lease liabilities$1,571 
Obligations under long-term operating lease liabilities, excluding current installments$941 
Weighted-average remaining lease term - operating leases (years)1.74
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 discontinued use of two satellite hubs and was released from the related payment obligation in exchange for additional satellite service capacity. As of March 31, 2022, 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 $755, 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 $45 for both the three months ended March 31, 2022 and 2021.

The future minimum lease payments under this financing lease as of March 31, 2022 are:
Remainder of 2022$198 
202322 
Total minimum lease payments$220 
Less amount representing interest$(2)
Present value of net minimum financing lease payments$218 
Less current installments of obligation under accrued other$218 
Obligations under other long-term liabilities, excluding current installments$— 
Weighted-average remaining lease term - finance leases (years)0.92
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 product 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 $3,813 as of March 31, 2022 and the non-current portion of the net investment in these leases was $6,119 as of March 31, 2022. 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 $207 and $231 during the three months ended March 31, 2022 and 2021, respectively.

The future undiscounted cash flows from these leases as of March 31, 2022 are:
Remainder of 2022$3,487 
20233,526 
20242,598 
20251,214 
2026393 
20277
Total undiscounted cash flows$11,225 
Present value of lease payments$9,932 
Difference between undiscounted cash flows and discounted cash flows $1,293 

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 March 31, 2022, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $1,735 and $236, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $82 for the three months ended March 31, 2022.

Lease revenue recognized was $126 for the three months ended March 31, 2022.

As of March 31, 2022, minimum future lease payments to be recognized on the operating leases are as follows:
2022$396 
2023527 
2024321 
202513 
Total $1,257 
Leases Leases
Lessee

The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense was $544 and $977 for the three months ended March 31, 2022 and 2021, respectively. Short-term operating lease costs were $55 and $57 for the three months ended March 31, 2022 and 2021, respectively. Sublease income was $35 and $34 for the three months ended March 31, 2022 and 2021, respectively. Maturities of lease liabilities as of March 31, 2022 under operating leases having an initial or remaining non-cancelable term of one year or more are as follows:

Remainder of 2022$1,456 
2023780 
2024392 
202514 
Total minimum lease payments$2,642 
Less amount representing interest$(130)
Present value of net minimum operating lease payments$2,512 
Less current installments of obligation under current-operating lease liabilities$1,571 
Obligations under long-term operating lease liabilities, excluding current installments$941 
Weighted-average remaining lease term - operating leases (years)1.74
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 discontinued use of two satellite hubs and was released from the related payment obligation in exchange for additional satellite service capacity. As of March 31, 2022, 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 $755, 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 $45 for both the three months ended March 31, 2022 and 2021.

The future minimum lease payments under this financing lease as of March 31, 2022 are:
Remainder of 2022$198 
202322 
Total minimum lease payments$220 
Less amount representing interest$(2)
Present value of net minimum financing lease payments$218 
Less current installments of obligation under accrued other$218 
Obligations under other long-term liabilities, excluding current installments$— 
Weighted-average remaining lease term - finance leases (years)0.92
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 product 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 $3,813 as of March 31, 2022 and the non-current portion of the net investment in these leases was $6,119 as of March 31, 2022. 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 $207 and $231 during the three months ended March 31, 2022 and 2021, respectively.

The future undiscounted cash flows from these leases as of March 31, 2022 are:
Remainder of 2022$3,487 
20233,526 
20242,598 
20251,214 
2026393 
20277
Total undiscounted cash flows$11,225 
Present value of lease payments$9,932 
Difference between undiscounted cash flows and discounted cash flows $1,293 

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 March 31, 2022, the gross costs and accumulated depreciation associated with these operating leases are included in revenue generating assets and amounted to $1,735 and $236, respectively. They are depreciated on a straight-line basis over a five-year estimated useful life. Depreciation expense for these assets was $82 for the three months ended March 31, 2022.

Lease revenue recognized was $126 for the three months ended March 31, 2022.

As of March 31, 2022, minimum future lease payments to be recognized on the operating leases are as follows:
2022$396 
2023527 
2024321 
202513 
Total $1,257