Finance Obligations

6 Months Ended

Jun. 30, 2021

Finance Obligations

Finance Obligations

17. 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 June 30, 2021 was $176.3 million, $27.3 million and $149.0 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 June 30, 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 June 30, 2021 was $19.5 million, $6.5 million and $13.0 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 June 30, 2021 and December 31, 2020.

Future minimum payments under finance obligations notes above as of June 30, 2021 were as follows (in thousands):

					Total
		Sale of Future		Sale/leaseback	Finance
		revenue - debt		financings	Obligations
Remainder of 2021	$	23,525	$	4,212	$	27,737
2022		46,165		4,975		51,140

2023		46,165		3,148		49,313
2024		46,165		16,154		62,319
2025 and thereafter		72,708		—		72,708
Total future minimum payments		234,728		28,489		263,217
Less imputed interest		(58,461)		(8,951)		(67,412)
Total	$	176,267	$	19,538	$	195,805

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

		Six months ended		Six months ended
		June 30, 2021		June 30, 2020
Cash payments (in thousands)	$	26,508	$	20,148
Weighted average remaining term (years)		4.9		4.3
Weighted average discount rate		11.3%		11.2%