Leases and Other

12 Months Ended

Dec. 31, 2023

Note 21. Leases and Other

The balance sheet presentation of our operating and finance leases is as follows:


		December 31,
(in thousands)	Classification on the Consolidated Balance Sheet	2023		2022
Assets:
Operating lease assets	Operating lease ROU assets	$	109,774	$	102,777
Finance lease assets	Property and equipment, net		57,120		57,534
Total lease assets		$	166,894	$	160,311

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	17,334	$	13,463
Finance lease obligations	Current portion of debt and finance obligations		2,742		2,978
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		106,109		101,297
Finance lease obligations	Long-term debt and finance obligations		61,187		61,751
Total lease liabilities		$	187,372	$	179,489

The components of lease expense consisted of the following:


	Year Ended December 31,
(in thousands)	2023		2022
Finance lease cost:
Amortization of ROU assets	$	4,250	$	4,264
Interest on lease liabilities		5,677		5,817
Operating lease cost		26,235		24,850
Short-term lease cost		3,564		2,545
Variable lease cost		5,291		5,566
Total lease cost, net	$	45,017	$	43,042

Other information related to operating and finance leases are as follows:


	Year Ended December 31,
(in thousands)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	25,775	$	23,024
Operating cash flows from finance leases	$	6,192	$	6,089
Financing cash flows from finance leases	$	3,185	$	3,845
ROU assets obtained in exchange for lease obligations:
Operating leases	$	24,226	$	24,050
Finance leases (1)	$	1,807	$	5,139

(1)

Includes terminations of equipment finance leases during 2023.


	December 31,
	2023			2022
Weighted-average remaining lease term (years):
Operating leases		7.64			8.51
Finance leases		33.47			34.07
Weighted-average discount rate:
Operating leases		7.88	%		7.25	%
Finance leases		9.17	%		9.12	%

As of December 31, 2023, the estimated future minimum lease payments under non-cancellable leases, excluding variable leases and variable non-lease components, are as follows:


(in thousands)	Operating Leases			Finance Leases			Total
2024	$	26,110		$	8,370		$	34,480
2025		25,432			7,537			32,969
2026		24,461			6,839			31,300
2027		20,874			6,429			27,303
2028		15,017			6,094			21,111
Thereafter		56,181			175,047			231,228
Total future lease payments		168,075			210,316			378,391
Less: Amount representing interest		(44,632	)		(146,387	)		(191,019	)
Present value of minimum lease payments		123,443			63,929			187,372
Current portion		17,334			2,742			20,076
Long-term portion	$	106,109		$	61,187		$	167,296

As of December 31, 2023, the estimated future minimum rental income under non-cancellable leases, which includes rental income from facilities that we own, are as follows:


(in thousands)
2024	$	2,842
2025		1,856
2026		1,605
2027		948
2028		771
Thereafter		2,081
Total minimum rents	$	10,103

Lease Not Yet Commenced

As of December 31, 2023, we had executed a facility lease for which we did not have control of the underlying assets. Accordingly, we did not record the lease liability and ROU asset on our Consolidated Balance Sheets. This lease is for a new FlyOver attraction, FlyOver Canada Toronto. The lease commencement date was originally planned for 2023, however, it has been postponed due to permitting and other related delays. Upon commencement date, it will have a lease term of 20 years.