Finance Obligation

12 Months Ended

Dec. 31, 2023

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, 2023 was $350.8 million, $74.0 million and $276.8 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 $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 amount is amortized using the effective interest method. Interest expense recorded related to finance obligations for the years ended December 31, 2023, 2022 and 2021 was $39.6 million, $29.7 million and $21.0 million, respectively.

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, 2023 was $17.6 million, $10.0 million and $7.6 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, 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.

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

					Total
	Sale of Future		Sale/Leaseback		Finance
	Revenue - Debt		Financings		Obligations
2024	$	109,805	$	11,133	$	120,938
2025		104,547		2,229		106,776
2026		87,824		2,229		90,053
2027		71,253		2,229		73,482
2028		51,188		2,015		53,203
2029 and thereafter		25,503		1,131		26,634
Total future minimum payments		450,120		20,966		471,086
Less imputed interest		(99,367)		(3,325)		(102,692)
Total	$	350,753	$	17,641	$	368,394

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

	Year ended		Year ended
	December 31, 2023		December 31, 2022
Cash payments (in thousands)	$	96,781	$	72,377
Weighted average remaining term (years)		4.49		4.84
Weighted average discount rate		11.3%		11.1%

The fair value of the Company’s total finance obligations approximated their carrying value for the years ended December 31, 2023 and December 31, 2022.