Finance Obligation

12 Months Ended

Dec. 31, 2021

Finance Obligation

Finance Obligation

13.  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 December 31, 2021 was $236.6 million, $37.5 million and $199.1 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, $24.7 million and $132.9 million of which was classified as short-term and long-term, respectively, on the accompanying consolidated balance sheet. The amount is amortized using the effective interest method. The fair value of this finance obligation approximated the carrying value as of both December 31, 2021 and 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 this obligation at December 31, 2021 was $17.0 million, $4.5 million and $12.5 million of which was classified as short-term and long-term, respectively on the accompanying consolidated balance sheet. The outstanding balance of finance obligations related to sale/leaseback transactions 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 sheet. The fair value of this finance obligation approximated the carrying value as of both December 31, 2021 and December 31, 2020.

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

					Total
		Sale of Future		Sale/leaseback	Finance
		revenue - debt		financings	Obligations
2022	$	62,080	$	5,219	$	67,299
2023		62,080		3,392		65,472
2024		62,080		9,148		71,228
2025		56,824		244		57,068
2026		40,100		244		40,344
2027 and thereafter		28,518		325		28,843
Total future minimum payments		311,682		18,572		330,254
Less imputed interest		(74,991)		(1,579)		(76,570)
Total	$	236,691	$	16,993	$	253,684

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

		Year ended		Year ended
		December 31, 2021		December 31, 2020
Cash payments (in thousands)	$	57,016	$	44,245
Weighted average remaining term (years)		5.03		5.00
Weighted average discount rate		10.8%		11.3%