Anuvu Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

3 Months Ended

Mar. 31, 2019

The income on operating leases and sales-type lease for the three-months ended March 31, 2019 is presented in the foregoing table (in thousands):



	Three Months Ended March 31, 2019
Lease income from operating leases⁽¹⁾	$	32,724
Earned income on sales-type leases⁽²⁾	185
Total Licensing & Service Revenues -- Maritime & Land Connectivity	$	32,909

⁽¹⁾This is classified as Licensing and services revenue.

⁽²⁾This includes the customer equipment arrangement classified as sales-type lease as of March 31, 2019.

Schedule of Operating Assets and Liabilities

The following table summarizes the impact of the adoption of ASC 842 on the Company’s condensed consolidated balance sheet and consolidated statement of operations, including both our real estate leases and a customer equipment arrangement meeting the sales-type lease classification (in thousands):



	Impact of Change in Accounting Policy -- as of and for the quarter ended March 31, 2019
	As reported		ASC 842 Impact			Legacy GAAP
Right-of-use assets, net	$	21,939	$	(21,939	)	$	—
Other non-current assets (net lease investment)⁽¹⁾	333		(333		)	—
Property and equipment, net⁽²⁾	—		(148		)	(148		)
Lease liabilities -- Other current liabilities	4,197		(4,197		)	—
-- Other non-current liabilities	20,818		(20,818		)	—
Revenue - equipment⁽¹⁾	333		(333		)	—
Cost of sales - equipment⁽¹⁾	148		(148		)	—

⁽¹⁾This includes the customer equipment arrangement classified as sales-type lease as of March 31, 2019, with net impact to our gross margin of $185,000.

⁽²⁾Since we elected to adopt the package of practical expedients with the ASC 842 implementation as of January 1, 2019, all existing customer equipment arrangements continue to be classified as operating leases, except as described in preceding footnote. Any new arrangements or changes/modifications to existing contracts after January 1, 2019 adoption date are subject to lease classification assessment in accordance with ASC 842’s new lease accounting model.

Lease, Cost

The following table discloses the weighted-average remaining lease term and IBR for our operating real estate leases, as well as supplemental cash flow information (in thousands):



	Three Months Ended March 31, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of operating lease liabilities	$	1,436
Right-of-use-assets obtained in exchange for operating lease obligations	$	—
Weighted average remaining lease term -- operating leases	7.87 years
Weighted average IBR -- operating leases	9.68		%

Lessee, Operating Lease, Liability, Maturity

The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of March 31, 2019 (in thousands):



Years Ending December 31,	Amount
2019 (remaining nine months)	$	3,643
2020	4,781
2021	4,727
2022	4,428
2023	4,023
Thereafter	15,106
Total Future Lease Payments	$	36,708
Less: Imputed interest	(11,693		)
Present value of Lease Liabilities	$	25,015

Schedule of Future Minimum Rental Payments for Operating Leases

The following is a schedule of future MRCs arising from our contractual arrangements with Maritime & Land Connectivity customers as of December 31, 2018 (in thousands):



Years Ending December 31,	Amount
2019	$	89,111
2020	34,885
2021	20,594
2022	4,864
2023	2,396
Total M&L Monthly Recurring Charges	$	151,850

The following is a schedule of future minimum lease payments under operating leases as of December 31, 2018 (in thousands):



Years Ending December 31,	Amount
2019	$	4,941
2020	4,593
2021	4,359
2022	3,818
2023	3,541
Thereafter	13,115
Total minimum lease payments	$	34,367

Schedule of Future Payments to be Received, Maturity

As Lessor -- Maritime & Land Monthly Recurring Charges

The following is a schedule of future monthly recurring charges (“MRCs”) arising from our contractual arrangements with Maritime & Land Connectivity customers as of March 31, 2019 (in thousands):



Years Ending December 31,	Amount
2019 (remaining 9 months)	$	80,814
2020	51,332
2021	27,603
2022	4,497
2023	1,935
Total M&L Monthly Recurring Charges	$	166,181

Lessor, Operating Lease, Book Value of Assets Subject to Leases

The book value of the equipment held by customers under operating leases, which are classified as “Equipment” in Note 4 - Property & Equipment, follows:



	March 31, 2019			December 31, 2018
Equipment
Gross balance	$	58,465		62,012
Accumulated depreciation	(24,511		)	(25,232		)
Net Book Value	$	33,954		$	36,780