Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.2
Leases
9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases

5.   Leases

In April 2020, the FASB issued interpretive guidance relating to the accounting for lease concessions provided as a result of COVID-19. In this guidance, entities can elect not to apply lease modification accounting with respect to such lease concessions and instead, treat the concession as if it was a part of the existing contract. The Company has elected to not evaluate leases under the lease modification accounting framework for concessions that result from effects of the COVID-19 pandemic. In relation to our rights to use port facilities, we have elected the approach consistent with resolving a contingency, which allows us to remeasure the lease liability and recognize the amount of change in the lease liability as an adjustment to the carrying amount of the associated right-of-use asset. As of September 30, 2020, our port facilities were remeasured with a downward adjustment of $9.4 million to both other long-term assets and accrued expenses and other liabilities. As the full amount of the concession will not be determinable until the force majeure period under the related arrangements have ended, further remeasurements will be required. During the contingency period, we are recognizing lease expense for these port facilities as incurred.

Lease balances were as follows (in thousands):

    

Balance Sheet location

    

September 30, 2020

 

December 31, 2019

Operating leases

 

  

 

  

  

Right-of-use assets

 

Other long-term assets

$

217,072

$

236,604

Current operating lease liabilities

 

Accrued expenses and other liabilities

23,574

39,126

Non-current operating lease liabilities

 

Other long-term liabilities

187,135

207,243

Finance leases

 

  

  

Right-of-use assets

 

Property and equipment, net

12,412

13,873

Current finance lease liabilities

 

Current portion of long-term debt

4,951

6,419

Non-current finance lease liabilities

 

Long-term debt

5,949

8,812