Finance Obligation

12 Months Ended

Dec. 31, 2022

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, 2022 was $312.1 million, $55.4 million and $256.6 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, 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 amount is amortized using the effective interest method. Interest expense recorded related to finance obligations for the year ended December 31, 2022 and 2021 was $29.7 million and $21.0 million, respectively. The fair value of this finance obligation approximated the carrying value as of both December 31, 2022 and 2021.

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, 2022 was $17.2 million, $3.5 million and $13.7 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, 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 fair value of this finance obligation approximated the carrying value as of both December 31, 2022 and December 31, 2021.

Future minimum payments under finance obligations notes above as of December 31, 2022 were as follows (in thousands):

					Total
	Sale of future		Sale/leaseback		Finance
	revenue - debt		financings		Obligations
2023	$	88,161	$	4,468	$	92,629
2024		88,161		10,223		98,384
2025		82,904		1,319		84,223
2026		66,181		1,319		67,500
2027		49,610		1,319		50,929
2028 and thereafter		34,634		1,345		35,979
Total future minimum payments		409,651		19,993		429,644
Less imputed interest		(97,577)		(2,827)		(100,404)
Total	$	312,074	$	17,166	$	329,240

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

	Year ended		Year ended
	December 31, 2022		December 31, 2021
Cash payments (in thousands)	$	72,377	$	57,016
Weighted average remaining term (years)		4.84		5.03
Weighted average discount rate		11.1%		10.8%