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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to
Commission file number: 1-08325
_____________________________________________________________
MYR GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware36-3158643
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
12150 East 112th Avenue
Henderson,CO80640
(Address of principal executive offices)(Zip Code)
(303) 286-8000
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)
_____________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueMYRGThe Nasdaq Stock Market, LLC
(Nasdaq Global Market)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ¨
Accelerated filer
x
Non-accelerated filer ¨
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No x
As of October 22, 2021, there were 16,869,947 outstanding shares of the registrant’s $0.01 par value common stock.



Table of Contents

INDEX
Page
Consolidated Balance Sheets as of September 30, 2021 (unaudited) and December 31, 2020
Throughout this report, references to “MYR Group,” the “Company,” “we,” “us” and “our” refer to MYR Group Inc. and its consolidated subsidiaries, except as otherwise indicated or as the context otherwise requires.
1

Table of Contents
PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
MYR GROUP INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)September 30,
2021
December 31,
2020
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents$73,006 $22,668 
Accounts receivable, net of allowances of $2,166 and $1,696, respectively
362,032 385,938 
Contract assets, net of allowances of $376 and $359, respectively
219,445 185,803 
Current portion of receivable for insurance claims in excess of deductibles10,639 11,859 
Refundable income taxes8,934 1,534 
Other current assets26,579 28,882 
Total current assets700,635 636,684 
Property and equipment, net of accumulated depreciation of $313,999 and $294,366, respectively
184,863 185,114 
Operating lease right-of-use assets21,447 22,291 
Goodwill66,065 66,065 
Intangible assets, net of accumulated amortization of $16,201 and $14,467, respectively
49,632 51,365 
Receivable for insurance claims in excess of deductibles33,536 27,043 
Investment in joint ventures3,786 3,040 
Other assets3,863 4,257 
Total assets$1,063,827 $995,859 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt$1,025 $4,381 
Current portion of operating lease obligations7,451 6,612 
Current portion of finance lease obligations 318 
Accounts payable193,218 162,580 
Contract liabilities149,847 158,396 
Current portion of accrued self-insurance23,945 24,395 
Other current liabilities80,215 86,718 
Total current liabilities455,701 443,400 
Deferred income tax liabilities19,682 18,339 
Long-term debt3,986 25,039 
Accrued self-insurance51,449 45,428 
Operating lease obligations, net of current maturities14,015 15,730 
Other liabilities22,814 18,631 
Total liabilities567,647 566,567 
Commitments and contingencies
Stockholders’ equity:
Preferred stock—$0.01 par value per share; 4,000,000 authorized shares; none issued and outstanding at September 30, 2021 and December 31, 2020
  
Common stock—$0.01 par value per share; 100,000,000 authorized shares; 16,869,947 and 16,734,239 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively
168 167 
Additional paid-in capital161,593 158,618 
Accumulated other comprehensive income100 23 
Retained earnings334,315 270,480 
Total stockholders’ equity attributable to MYR Group Inc.496,176 429,288 
Noncontrolling interest4 4 
Total stockholders’ equity496,180 429,292 
Total liabilities and stockholders’ equity$1,063,827 $995,859 
The accompanying notes are an integral part of these consolidated financial statements.
2

Table of Contents
MYR GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Three months ended
September 30,
Nine months ended
September 30,
(in thousands, except per share data)2021202020212020
Contract revenues$610,182 $607,901 $1,852,241 $1,639,422 
Contract costs526,259 531,429 1,610,343 1,440,013 
Gross profit83,923 76,472 241,898 199,409 
Selling, general and administrative expenses53,072 51,443 154,609 137,688 
Amortization of intangible assets578 578 1,734 3,009 
Gain on sale of property and equipment(679)(478)(2,473)(1,967)
Income from operations30,952 24,929 88,028 60,679 
Other income (expense):
Interest income23  51 6 
Interest expense(305)(1,113)(1,458)(3,941)
Other income (expense), net69 18 190 (556)
Income before provision for income taxes30,739 23,834 86,811 56,188 
Income tax expense7,568 6,542 22,493 15,579 
Net income$23,171 $17,292 $64,318 $40,609 
Income per common share:
—Basic$1.37 $1.04 $3.82 $2.44 
—Diluted$1.35 $1.02 $3.75 $2.42 
Weighted average number of common shares and potential common shares outstanding:
—Basic16,868 16,698 16,828 16,670 
—Diluted17,167 16,882 17,132 16,798 
Net income$23,171 $17,292 $64,318 $40,609 
Other comprehensive income (loss):
Foreign currency translation adjustment(589)(5)77 43 
Other comprehensive income (loss):(589)(5)77 43 
Total comprehensive income$22,582 $17,287 $64,395 $40,652 
The accompanying notes are an integral part of these consolidated financial statements.
3

Table of Contents
MYR GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

PreferredCommon StockAdditional
Paid-In
Accumulated
Other
Comprehensive
RetainedMYR
Group Inc.
Stockholders’
Noncontrolling
(in thousands)StockSharesAmountCapitalIncome (Loss)EarningsEquityInterestTotal
Balance at December 31, 2019 16,649 $166 $152,532 $(446)$212,219 $364,471 $4 $364,475 
Net income— — — — — 9,932 9,932 — 9,932 
Adjustment to adopt ASC 326— — — — — (268)(268)— (268)
Stock issued under compensation plans, net— 55 — 82 — — 82 — 82 
Stock-based compensation expense— — — 1,080 — — 1,080 — 1,080 
Shares repurchased— (20)— (241)— (185)(426)— (426)
Other comprehensive income— — — — 87 — 87 — 87 
Stock issued - other— 1 — 24 — — 24 — 24 
Balance at March 31, 2020 16,685 166 153,477 (359)221,698 374,982 4 374,986 
Net income— — — — — 13,385 13,385 — 13,385 
Stock issued under compensation plans, net— 23 1 — — — 1 — 1 
Stock-based compensation expense — — — 1,093 — — 1,093 — 1,093 
Other comprehensive loss— — — — (39)— (39)— (39)
Stock issued - other— 1 — 24 — — 24 — 24 
Balance at June 30, 2020 16,709 167 154,594 (398)235,083 389,446 4 389,450 
Net income— — — — — 17,292 17,292 — 17,292 
Stock issued under compensation plans, net— 10 — 224 — — 224 — 224 
Stock-based compensation expense— — — 1,631 — — 1,631 — 1,631 
Other comprehensive income— — — — (5)— (5)— (5)
Stock issued - other— — — 12 — — 12 — 12 
Balance at September 30, 2020$ 16,719 $167 $156,461 $(403)$252,375 $408,600 $4 $408,604 
Balance at December 31, 2020 16,734 $167 $158,618 $23 $270,480 $429,288 $4 $429,292 
Net income— — — — — 19,928 19,928 — 19,928 
Stock issued under compensation plans, net— 123 1 109 — — 110 — 110 
Stock-based compensation expense— — — 1,487 — — 1,487 — 1,487 
Shares repurchased— (41)— (2,231)— (387)(2,618)— (2,618)
Other comprehensive income— — — — 253 — 253 — 253 
Stock issued - other— 1 — 12 — — 12 — 12 
Balance at March 31, 2021 16,817 168 157,995 276 290,021 448,460 4 448,464 
Net income— — — — — 21,219 21,219 — 21,219 
Stock issued under compensation plans, net— 60 1 318 — — 319 — 319 
Stock-based compensation expense — — — 1,948 — — 1,948 — 1,948 
Shares repurchased— (10)(1)(637)— (96)(734)— (734)
Other comprehensive income— — — — 413 — 413 — 413 
Balance at June 30, 2021 16,867 168 159,624 689 311,144 471,625 4 471,629 
Net income— — — — — 23,171 23,171 — 23,171 
Stock issued under compensation plans, net— 3 — 54 — — 54 — 54 
Stock-based compensation expense— — — 1,915 — — 1,915 — 1,915 
Other comprehensive income— — — — (589)— (589)— (589)
Balance at September 30, 2021$ 16,870 $168 $161,593 $100 $334,315 $496,176 $4 $496,180 
The accompanying notes are an integral part of these consolidated financial statements.
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MYR GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended
September 30,
(in thousands)20212020
Cash flows from operating activities:
Net income$64,318 $40,609 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization of property and equipment32,884 32,021 
Amortization of intangible assets1,734 3,009 
Stock-based compensation expense5,350 3,804 
Deferred income taxes1,364 712 
Gain on sale of property and equipment(2,473)(1,967)
Other non-cash items1,171 654 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net23,929 (12,869)
Contract assets, net(33,642)(4,754)
Receivable for insurance claims in excess of deductibles(5,273)3,103 
Other assets(5,786)7,074 
Accounts payable29,874 7,596 
Contract liabilities(8,515)20,161 
Accrued self insurance5,571 (2,257)
Other liabilities(2,291)31,730 
Net cash flows provided by operating activities108,215 128,626 
Cash flows from investing activities:
Proceeds from sale of property and equipment2,489 2,147 
Purchases of property and equipment(32,701)(27,470)
Net cash flows used in investing activities(30,212)(25,323)
Cash flows from financing activities:
Net repayments under revolving lines of credit (65,189)
Payment of principal obligations under equipment notes(24,409)(30,441)
Payment of principal obligations under finance leases(336)(914)
Proceeds from exercise of stock options483 306 
Repurchase of common shares(3,352)(426)
Other financing activities11 60 
Net cash flows used in financing activities(27,603)(96,604)
Effect of exchange rate changes on cash(62)(150)
Net increase in cash and cash equivalents50,338 6,549 
Cash and cash equivalents:
Beginning of period22,668 12,397 
End of period$73,006 $18,946 
The accompanying notes are an integral part of these consolidated financial statements.
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MYR GROUP INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. Organization, Business and Basis of Presentation
Organization and Business
MYR Group Inc. (the “Company”) is a holding company of specialty electrical construction service providers and is currently conducting operations through wholly owned subsidiaries, including: The L. E. Myers Co., a Delaware corporation; Harlan Electric Company, a Michigan corporation; Great Southwestern Construction, Inc., a Colorado corporation; Sturgeon Electric Company, Inc., a Michigan corporation; MYR Energy Services, Inc., a Delaware corporation; E.S. Boulos Company, a Delaware corporation; High Country Line Construction, Inc., a Nevada corporation; Sturgeon Electric California, LLC, a Delaware limited liability company; GSW Integrated Services, LLC, a Delaware limited liability company; Huen Electric, Inc., a Delaware corporation; CSI Electrical Contractors, Inc., a Delaware corporation; MYR Transmission Services Canada, Ltd., a British Columbia corporation; Northern Transmission Services, Ltd., a British Columbia corporation and Western Pacific Enterprises Ltd., a British Columbia corporation.
The Company performs construction services in two business segments: Transmission and Distribution (“T&D”), and Commercial and Industrial (“C&I”). T&D customers include investor-owned utilities, cooperatives, private developers, government-funded utilities, independent power producers, independent transmission companies, industrial facility owners and other contractors. T&D provides a broad range of services, which include design, engineering, procurement, construction, upgrade, maintenance and repair services, with a particular focus on construction, maintenance and repair. C&I customers include general contractors, commercial and industrial facility owners, government agencies and developers. C&I provides a broad range of services, which include the design, installation, maintenance and repair of commercial and industrial wiring, the installation of traffic networks and the installation of bridge, roadway and tunnel lighting.
Basis of Presentation
Interim Consolidated Financial Information
The accompanying unaudited consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company believes that the disclosures made are adequate to make the information presented not misleading. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations, comprehensive income, stockholders’ equity and cash flows with respect to the interim consolidated financial statements, have been included. Certain reclassifications were made to prior year amounts to conform to the current year presentation. The consolidated balance sheet as of December 31, 2020 has been derived from the audited financial statements as of that date. The results of operations and comprehensive income are not necessarily indicative of the results for the full year or the results for any future periods. These financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on March 3, 2021 (the "2020 Annual Report").
Joint Ventures and Noncontrolling Interests
The Company accounts for investments in joint ventures using the proportionate consolidation method for income statement reporting and under the equity method for balance sheet reporting, unless the Company has a controlling interest causing the joint venture to be consolidated with equity owned by other joint venture partners recorded as noncontrolling interests. Under the proportionate consolidation method, joint venture activity is allocated to the appropriate line items found on the consolidated statements of operations in proportion to the percentage of participation the Company has in the joint venture. Under the equity method the net investment in joint ventures is stated as a single item on the Company’s consolidated balance sheets. If an investment in a joint venture contains a recourse or unfunded commitments to provide additional equity, distributions and/or losses in excess of the investment, a liability is recorded in other current liabilities on the Company’s consolidated balance sheets.
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For joint ventures in which the Company does not have a controlling interest, the Company’s share of any profits and assets and its share of any losses and liabilities are recognized based on the Company’s stated percentage partnership interest in the joint venture, and are normally recorded by the Company one month in arrears. The investments in joint ventures are recorded at cost and the carrying amounts are adjusted to recognize the Company’s proportionate share of cumulative income or loss, additional contributions made and dividends and capital distributions received. The Company records the effect of any impairment or any other-than-temporary decrease in the value of the joint venture investment as incurred, which may or may not be one month in arrears, depending on when the Company obtains the joint venture activity information. Additionally, the Company continually assesses the fair value of its investment in unconsolidated joint ventures despite using information that is one month in arrears for regular reporting purposes. The Company includes only its percentage ownership of each joint venture in its backlog.
The Company is the majority controlling interest in a joint venture. As a result, the Company has consolidated the carrying value of the joint ventures’ assets and liabilities and results of operations in the Company’s consolidated financial statements. The equity owned by the other joint venture partners has been recorded as noncontrolling interest in the Company’s consolidated balance sheets, consolidated statements of stockholders’ equity, and their portions, if material, of net income (loss) and other comprehensive income shown as net income or other comprehensive income attributable to noncontrolling interest in the Company’s consolidated statements of operations and other comprehensive income. Additionally, the joint venture associated with the Company’s noncontrolling interest is a partnership, and consequently, the tax effect of only the Company’s share of the joint venture income is recognized by the Company. The majority controlled joint venture made no distributions to its partners, and the Company made no capital contributions to the joint venture, during the three and nine months ended September 30, 2021. Additionally, there have been no changes in ownership during the three and nine months ended September 30, 2021. The project associated with this joint venture was substantially completed in 2019.
Foreign Currency
The functional currency for the Company’s Canadian operations is the Canadian dollar. Assets and liabilities denominated in Canadian dollars are translated into U.S. dollars at the end-of-period exchange rate. Revenues and expenses are translated using average exchange rates for the periods reported. Equity accounts are translated at historical rates. Cumulative translation adjustments are included as a separate component of accumulated other comprehensive income in shareholders’ equity. Foreign currency transaction gains and losses, arising primarily from changes in exchange rates on short-term monetary assets and liabilities, and ineffective long-term monetary assets and liabilities are recorded in the “other income, net” line on the Company’s consolidated statements of operations. Foreign currency losses, recorded in other income, net, for the nine months ended September 30, 2021 were $0.1 million. Foreign currency gains, recorded in other income, net, for the nine months ended September 30, 2020 were not significant. Effective foreign currency transaction gains and losses, arising primarily from long-term monetary assets and liabilities, are recorded in the foreign currency translation adjustment line on the Company’s consolidated statements of comprehensive income.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Actual results could differ from those estimates.
The most significant estimates are related to estimates of costs to complete contracts, pending change orders and claims, shared savings, insurance reserves, income tax reserves, estimates surrounding stock-based compensation, the recoverability of goodwill and intangibles and allowance for doubtful accounts. The Company estimates a cost accrual every quarter that represents costs incurred but not invoiced for services performed or goods delivered during the period, and estimates revenue from the contract cost portion of these accruals based on current gross margin rates to be consistent with its cost method of revenue recognition.
As of September 30, 2021 and 2020, the Company had recognized revenues of $4.0 million and $19.1 million, respectively, related to significant change orders and/or claims that had been included as contract price adjustments on certain contracts, some of which are multi-year projects. These change orders and/or claims are in the process of being negotiated in the normal course of business, and a portion of these recognized revenues had been included in multiple periods.
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The cost-to-cost method of accounting requires the Company to make estimates about the expected revenue and gross profit on each of its contracts in process. During the three months ended September 30, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 1.4%, which resulted in increases in operating income of $8.2 million, net income of $5.9 million and diluted earnings per common share of $0.35. During the nine months ended September 30, 2021, changes in estimates pertaining to certain projects increased consolidated gross margin by 0.4%, which resulted in increases in operating income of $7.2 million, net income of $5.2 million and diluted earnings per common share of $0.30.
During the three months ended September 30, 2020, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.3%, which resulted in decreases in operating income of $1.9 million, net income of $1.5 million and diluted earnings per common share of $0.09. During the nine months ended September 30, 2020, changes in estimates pertaining to certain projects decreased consolidated gross margin by 0.4%, which resulted in decreases in operating income of $7.6 million, net income of $5.5 million and diluted earnings per common share of $0.33.
Recent Accounting Pronouncements
Changes to U.S. GAAP are typically established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. The Company, based on its assessment, determined that any recently issued or proposed ASUs not listed below are either not applicable to the Company or adoption will have minimal impact on its consolidated financial statements.
Recently Adopted Accounting Pronouncements
In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistent application among reporting entities. The Company adopted this ASU in January 2021 and there was no effect on the consolidated financial statements or disclosures.
2. Contract Assets and Liabilities
Contracts with customers usually stipulate the timing of payment, which is defined by the terms found within the various contracts under which work was performed during the period. Therefore, contract assets and liabilities are created when the timing of costs incurred on work performed does not coincide with the billing terms, which frequently include retention provisions contained in each contract.
The Company’s consolidated balance sheets present contract assets, which contain unbilled revenue and contract retainages associated with contract work that has been completed and billed but not paid by customers, pursuant to retainage provisions, that are generally due once the job is completed and approved. The allowance for doubtful accounts associated with contract assets was $0.4 million as of September 30, 2021 and December 31, 2020.
Contract assets consisted of the following:
(in thousands)September 30,
2021
December 31,
2020
Change
Unbilled revenue, net$132,599 $97,543 $35,056 
Contract retainages, net86,846 88,260 (1,414)
Contract assets, net$219,445 $185,803 $33,642 
The Company’s consolidated balance sheets present contract liabilities which contain deferred revenue and an accrual for contracts in a loss provision.
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Contract liabilities consisted of the following:
(in thousands)September 30,
2021
December 31,
2020
Change
Deferred revenue$146,604 $155,570 $(8,966)
Accrued loss provision3,243 2,826 417 
Contract liabilities$149,847 $158,396 $(8,549)
The following table provides information about contract assets and contract liabilities from contracts with customers:
(in thousands)September 30,
2021
December 31,
2020
Change
Contract assets, net$219,445 $185,803 $33,642 
Contract liabilities(149,847)(158,396)8,549 
Net contract assets (liabilities)$69,598 $27,407 $42,191 
The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing of the Company’s billings in relation to its performance of work. The amounts of revenue recognized in the period that were included in the opening contract liability balances were $13.8 million and $98.0 million for the three and nine months ended September 30, 2021, respectively. The amounts of revenue recognized in the period that were included in the opening contract liability balances were $31.3 million and $57.7 million for the three and nine months ended September 30, 2020, respectively. This revenue consists primarily of work performed on previous billings to customers.
The net asset position for contracts in process consisted of the following:
(in thousands)September 30,
2021
December 31,
2020
Costs and estimated earnings on uncompleted contracts$3,969,565 $3,921,376 
Less: billings to date3,983,570 3,979,403 
$(14,005)$(58,027)
The net asset position for contracts in process is included within the contract asset and contract liability in the accompanying consolidated balance sheets as follows:
(in thousands)September 30,
2021
December 31,
2020
Unbilled revenue $132,599 $97,543 
Deferred revenue (146,604)(155,570)
$(14,005)$(58,027)

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3. Lease Obligations
From time-to-time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to six years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At September 30, 2021, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease.
The following is a summary of the lease-related assets and liabilities recorded:
September 30,
2021
December 31,
2020
(in thousands)Classification on the Consolidated Balance Sheet
Assets
Operating lease right-of-use assetsOperating lease right-of-use assets$21,447 $22,291 
Finance lease right-of-use assetsProperty and equipment, net of accumulated depreciation 390 
Total right-of-use lease assets$21,447 $22,681 
Liabilities
Current
Operating lease obligationsCurrent portion of operating lease obligations$7,451 $6,612 
Finance lease obligationsCurrent portion of finance lease obligations 318 
Total current obligations7,451 6,930 
Non-current
Operating lease obligationsOperating lease obligations, net of current maturities14,015 15,730 
Total non-current obligations14,015 15,730 
Total lease obligations$21,466 $22,660 
The following is a summary of the lease terms and discount rates:
September 30,
2021
December 31,
2020
Weighted-average remaining lease term - finance leaseszero years0.4 years
Weighted-average remaining lease term - operating leases3.0 years3.4 years
Weighted-average discount rate - finance leases %2.6 %
Weighted-average discount rate - operating leases3.9 %3.9 %
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The following is a summary of certain information related to the lease costs for finance and operating leases:
(in thousands)Three months ended
September 30,
Nine months ended
September 30,
2021202020212020
Lease cost:
Finance lease cost:
Amortization of right-of-use assets$11 $240 $386 $737 
Interest on lease liabilities 7  27 
Operating lease cost2,515 2,327 7,474 6,875 
Variable lease costs78 106 233 259 
Total lease cost$2,604 $2,680 $8,093 $7,898 
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
Nine months ended September 30,
(in thousands)20212020
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$7,635 $6,676 
Right-of-use asset obtained in exchange for new operating lease obligations$5,687 $5,592 
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets under operating leases, less imputed interest, as of September 30, 2021 were as follows:
(in thousands)Operating Lease
Obligations
Remainder of 2021
$2,642 
20229,430 
20236,953 
20243,847 
20251,685 
2026977 
Thereafter10 
Total minimum lease payments25,544 
Financing component(4,078)
Net present value of minimum lease payments21,466 
Less: current portion of finance and operating lease obligations(7,451)
Long-term finance and operating lease obligations$14,015