Finance Obligation

9 Months Ended

Sep. 30, 2022

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 September 30, 2022 was $287.3 million, $49.9 million and $237.4 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, 2021 was $236.6 million, $37.5 million and $199.1 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 September 30, 2022 and 2021 was $7.4 million and $5.3 million, respectively. Interest expense recorded related to finance obligations for the nine months ended September 30, 2022 and 2021 was $21.1 million and $15.0 million, respectively. The fair value of this finance obligation approximated the carrying value as of September 30, 2022 and December 31, 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 finance obligations related to sale/leaseback transactions at September 30, 2022 was $16.3 million, $3.4 million and $12.9 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 $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 sheets. The fair value of this finance obligation approximated the carrying value as of both September 30, 2022 and December 31, 2021.

Future minimum payments under finance obligations notes above as of September 30, 2022 were as follows (in thousands):

					Total
	Sale of future		Sale/leaseback		Finance
	revenue - debt		financings		Obligations
Remainder of 2022	$	20,008	$	1,057	$	21,065
2023		80,034		4,091		84,125
2024		80,034		9,846		89,880
2025		74,777		942		75,719
2026		58,054		942		58,996
2027 and thereafter		64,686		1,759		66,445
Total future minimum payments		377,593		18,637		396,230
Less imputed interest		(90,266)		(2,370)		(92,636)
Total	$	287,327	$	16,267	$	303,594

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

	Nine months ended		Nine months ended
	September 30, 2022		September 30, 2021
Cash payments (in thousands)	$	51,609	$	41,325
Weighted average remaining term (years)		4.86		4.88
Weighted average discount rate		11.1%		11.3%