Finance Obligation

9 Months Ended

Sep. 30, 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 September 30, 2023 was $355.2 million, $75.0 million and $280.2 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 September 30, 2023 and 2022 was $10.4 million and $7.4 million, respectively. Interest expense recorded related to finance obligations for the nine months ended September 30, 2023 and 2022 was $29.4 million and $21.1 million, respectively. The fair value of this finance obligation approximated the carrying value as of September 30, 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 September 30, 2023 was $17.2 million, $10.4 million and $6.8 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 $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 September 30, 2023 and December 31, 2022.

Future minimum payments under finance obligations notes above as of September 30, 2023 were as follows (in thousands):

					Total
	Sale of Future		Sale/Leaseback		Finance
	Revenue - Debt		Financings		Obligations
Remainder of 2023	$	26,835	$	1,158	$	27,993
2024		107,341		10,801		118,142
2025		102,084		1,897		103,981
2026		85,361		1,897		87,258
2027		68,790		1,897		70,687
2028 and thereafter		70,678		2,362		73,040
Total future minimum payments		461,089		20,012		481,101
Less imputed interest		(105,893)		(2,797)		(108,690)
Total	$	355,196	$	17,215	$	372,411