Finance Obligations

12 Months Ended

Dec. 31, 2024

Finance Obligations

Finance Obligations

15. Finance Obligations

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 as of December 31, 2024 was $276.7 million, $77.5 million and $199.2 million of which was classified as short-term and long-term, respectively, on the accompanying consolidated balance sheets. The outstanding balance of this obligation as of 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 sheets. The amount is amortized using the effective interest method. Interest expense recorded related to finance obligations for the years ended December 31, 2024, 2023 and 2022 was $36.7 million, $39.6 million and $29.7 million, respectively.

During the year ended December 31, 2024, the Company entered into failed sale/leaseback transactions that were accounted for as financing obligations, resulting in $60.3 million of additional finance obligations. No gain or loss was recorded as a result of these transactions. The outstanding balance of the Company’s finance obligations related to sale/leaseback transactions as of December 31, 2024 was $70.7 million, $5.6 million and $65.1 million of which was classified as short-term and long-term, respectively on the accompanying consolidated balance sheets with a residual value of $37.7 million. The outstanding balance of the Company’s finance obligations related to sale/leaseback transactions as of 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 sheets with no residual value.

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

					Total
	Sale of Future		Sale/Leaseback		Finance
	Revenue - Debt		Financings		Obligations
2025	$	104,547	$	18,525	$	123,072
2026		87,824		14,698		102,522
2027		71,253		14,698		85,951
2028		51,188		14,484		65,672
2029		24,082		12,153		36,235
2030 and thereafter		1,421		11,742		13,163
Total future minimum payments		340,315		86,300		426,615
Less imputed interest		(63,606)		(53,297)		(116,903)
Total	$	276,709	$	33,003	$	309,712

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

	Year ended			Year ended			Year ended
	December 31, 2024			December 31, 2023			December 31, 2022
Cash payments (in thousands)	$	117,988		$	96,781		$	72,377
Weighted average remaining term (years)		4.10			4.49			4.84
Weighted average discount rate		12.3	%		11.3	%		11.1	%

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