Finance Obligation

3 Months Ended

Mar. 31, 2024

Finance Obligation

Finance Obligation

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 March 31, 2024 was $333.0 million, $75.7 million and $257.3 million of which was classified as short-term and long-term, respectively, on the unaudited interim condensed consolidated balance sheet. 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 unaudited interim condensed consolidated balance sheet. The amount is amortized using the effective interest method. Interest expense recorded related to finance obligations for the three months ended March 31, 2024 and 2023 was $10.0 million and $9.2 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 finance obligations related to sale/leaseback transactions at March 31, 2024 was $16.8 million, $9.5 million and $7.3 million of which was classified as short-term and long-term, respectively, on the unaudited interim condensed consolidated balance sheet. 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 unaudited interim condensed consolidated balance sheet.

Future minimum payments under finance obligations notes above as of March 31, 2024 were as follows (in thousands):

					Total
	Sale of Future		Sale/Leaseback		Finance
	Revenue - Debt		Financings		Obligations
Remainder of 2024	$	82,353	$	9,924	$	92,277
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		422,668		19,757		442,425
Less imputed interest		(89,647)		(2,993)		(92,640)
Total	$	333,021	$	16,764	$	349,785

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

	Three months ended		Three months ended
	March 31, 2024		March 31, 2023
Cash payments (in thousands)	$	28,660	$	24,311
Weighted average remaining term (years)		4.27		4.76
Weighted average discount rate		11.3%		11.2%

The fair value of the Company’s total finance obligations approximated their carrying value as of March 31, 2024 and December 31, 2023.