Finance Obligation

3 Months Ended

Mar. 31, 2023

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, 2023 was $324.9 million, $59.9 million and $265.0 million of which was classified as short-term and long-term, respectively, on the accompanying unaudited interim condensed consolidated balance sheet. 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. The amount is amortized using the effective interest method. Interest expense recorded related to finance obligations for the three months ended March 31, 2023 and 2022 was $9.2 million and $6.7 million, respectively. The fair value of this finance obligation approximated the carrying value as of March 31, 2023 and December 31, 2022.

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, 2023 was $17.9 million, $3.5 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, 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 sheets. The fair value of this finance obligation approximated the carrying value as of March 31, 2023 and December 31, 2022.

Future minimum payments under finance obligations notes above as of March 31, 2023 were as follows (in thousands):

					Total
	Sale of future		Sale/leaseback		Finance
	revenue - debt		financings		Obligations
Remainder of 2023	$	70,471	$	3,591	$	74,062
2024		93,961		10,589		104,550
2025		88,705		1,686		90,391
2026		71,333		1,686		73,019
2027		54,831		1,686		56,517
2028 and thereafter		44,364		1,955		46,319
Total future minimum payments		423,665		21,193		444,858
Less imputed interest		(98,767)		(3,277)		(102,044)
Total	$	324,898	$	17,916	$	342,814