Note 9Commitments and Contingencies Global Xpress (GX) Dispute Inmarsat plc (Inmarsat), a satellite telecommunications company , filed arbitration with the International Centre for Dispute Resolution tribunal (the panel) in October 2016 concerning a January 2014 take-or-pay agreement to purchase up to $65.0 million, under certain conditions, of GX capacity from Inmarsat over several years. In June 2019, the Company announced that it reached a settlement with Inmarsat plc that concludes the GX Dispute. Pursuant to the settlement the Company paid $45.0 million in June 2019 and paid $5.0 million in July 2019 and will pay $0.8 million in the third quarter of 2020. The Company had an accrued liability of $0.8 million as of December 31, 2019. The Company incurred cost of $3.9 million in GX Dispute Phase II legal costs for the year ended December 31, 2019. The Company incurred legal expenses of $2.2 million in connection with the GX Dispute for the year ended December 31, 2018. Other Litigation The Company, in the ordinary course of business, is a claimant or a defendant in various legal proceedings, including proceedings as to which the Company has no insurance coverage and those that may involve the filing of liens against the Company or its assets. Sales Tax Audit The Company is undergoing a routine sales tax audit from a state where the Company has operations. The audit can cover up to a four-year period. The Company is in the early stages of the audit, and does not have any estimates of further exposure, if any, for the tax years under review. Operating Leases The Company adopted the new lease accounting standard effective with the first quarter of 2019 and has used the optional transition method permitted under ASU 2018-11. Accordingly, prior year amounts have not been adjusted and continue to be reflected in accordance with the Companys historical accounting. The Companys leasing activities primarily consist of leases of real-estate including office space under lease agreements expiring on various dates through 2025. For the year ended December 31, 2019, 2018 and 2017, the Company recognized expense under operating leases, which approximates cash paid and includes short-term leases, of $2.5 million, $2.8 million and $4.0 million, respectively. As of December 31, 2019, future undiscounted minimum lease obligation maturities were as follows (in thousands): 2020 2,053 2021 1,358 2022 1,207 2023 1,176 2024 1,198 Thereafter 3,020 Total lease payments $ 10,012 Less present value discount (1,599 ) Amounts recognized in Balance Sheet $ 8,413 Amounts recognized in Balance Sheet Deferred revenue and other current liabilities 2,084 Right-of-use lease liability - long-term portion 6,329 Total right-to-use lease liability $ 8,413 Operating lease right-of-use assets for leases were $6.8 million as of December 31, 2019. The right-of-use assets and liabilities for leases were discounted at a weighted-average discount rate of 5.1%. The weighted-average remaining lease term as of December 31, 2019 was 7.1 years. In December 2019, we completed the sale transaction of certain towers. The Company received $4.9 million in proceeds from the sale, resulting in a gain of $4.9 million which is recognized in gain on the sales of property plant and equipment. We leaseback certain communications license agreements that allows us to operate radio communications equipment on a portion of these towers. The initial term on the lease is ten years, and is recognized as an operating lease. As of December 31, 2018, future undiscounted minimum lease obligation maturities were as follows (in thousands): 2019 1,822 2020 1,115 2021 780 2022 692 2023 659 Thereafter 1,044 $ 6,112 Commercial Commitments The Company enters into contracts for satellite bandwidth and other network services with certain providers. As of December 31, 2019, the Company had the following commercial commitments related to satellite and network services (in thousands): 2020 20,206 2021 9,953 2022 4,527 $ 34,686