Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.21.2
LEASES
9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
LEASES LEASES
Leases primarily pertain to certain controlled aircraft, corporate headquarters, and operational facilities, including aircraft hangars, which are all accounted for as operating leases.
Our leases do not contain residual value guarantees, covenants, or other associated restrictions. We have certain variable lease agreements with aircraft owners that contain payment terms based on an hourly lease rate multiplied by the number of flight hours during a month. Variable lease payments were $3.2 million and $12.1 million for the three and nine months ended September 30, 2021, respectively, and $2.7 million and $7.9 million for the three and nine months ended September 30, 2020, respectively.
The components of net lease cost are as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Operating lease costs $ 12,643  $ 6,043  $ 29,900  $ 15,435 
Short-term lease costs 3,331  3,907  16,139  12,085 
Total lease costs $ 15,974  $ 9,950  $ 46,039  $ 27,520 
Costs related to leased aircraft and operational facilities were $14.4 million and $41.1 million for the three and nine months ended September 30, 2021, respectively, and $8.1 million and $22.4 million for the three and nine months ended September 30, 2020, respectively, and are included in cost of revenue in the condensed consolidated statements of operations. Costs related to leased corporate headquarters and other office space including expenses for non-lease components were $1.6 million and $4.7 million for the three and nine months ended September 30, 2021, respectively, and $1.8 million and $5.0 million for the three and nine months ended September 30, 2020, respectively, and are included in general and administrative expense in the condensed consolidated statements of operations.
Supplemental cash flow information related to leases are as follows (in thousands):
Nine Months Ended September 30,
2021 2020
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows paid for operating leases $ 27,773  $ 20,072 
Right-of-use assets obtained in exchange for operating lease obligations $ 62,856  $ 51,519 
Supplemental balance sheet information related to leases are as follows:
September 30, 2021 December 31, 2020
Weighted-average remaining lease term (in years):
Operating leases 6.5 7.5
Weighted-average discount rate:
Operating leases 9.5  % 9.5  %
Maturities of lease liabilities, as of September 30, 2021, are as follows (in thousands):
Year ending December 31, Operating Leases
2021 $ 9,991 
2022 36,555 
2023 30,948 
2024 19,356 
2025 14,695 
Thereafter 51,498 
Total lease payments 163,043 
Less: Imputed interest (43,641)
Total lease obligations $ 119,402