Finance Obligation

3 Months Ended

Mar. 31, 2021

Finance Obligation

Finance Obligation

18. Finance Obligation  

The Company has sold future services to be performed associated with certain sale/leaseback transactions and recorded the balance as a finance obligation.  The outstanding balance of this obligation at March 31, 2021 was $161.0 million, $24.7 million and $136.3 million of which was classified as short-term and long-term, respectively, on the accompanying consolidated balance sheet. The outstanding balance of this obligation at December 31, 2020 was $157.7 million, $24.2 million and $133.5 million of which was classified as short-term and long-term, respectively. The amount is amortized using the effective interest method. The fair value of this finance obligation approximated the carrying value as of March 31, 2021 and December 31, 2020.

In prior periods, the Company entered into sale/leaseback transactions that were accounted for as financing transactions and reported as part of finance obligations. The outstanding balance of finance obligations related to sale/leaseback transactions at March 31, 2021 was $21.8 million, $7.4 million and $14.4 million of which was classified as short-term and long-term, respectively on the accompanying consolidated balance sheet.  The outstanding balance of this obligation at December 31, 2020 was $23.9 million, $8.0 million and $15.9 million of which was classified as short-term and long-term, respectively on the accompanying consolidated balance sheets.  The fair value of this finance obligation approximated the carrying value as of both March 31, 2021 and December 31, 2020.

Future minimum payments under finance obligations notes above as of March 31, 2021 were as follows (in thousands):

					Total
		Sale of Future		Sale/leaseback	Finance
		revenue - debt		financings	Obligations
Remainder of 2021	$	31,738	$	6,795	$	38,533
2022		41,554		4,976		46,530
2023		41,554		3,149		44,703
2024		41,554		16,154		57,708
2025 and thereafter		59,449		—		59,449
Total future minimum payments		215,849		31,074		246,923
Less imputed interest		(54,827)		(9,305)		(64,132)
Total	$	161,022	$	21,769	$	182,791

Other information related to the above finance obligations are presented in the following table:

		Three months ended		Three months ended
		March 31, 2021		March 31, 2020
Cash payments (in thousands)	$	12,816	$	9,879
Weighted average remaining term (years)		4.9		4.3
Weighted average discount rate		11.2%		11.1%