FINANCING LIABILITY

12 Months Ended

Dec. 31, 2023

We have operations at several properties that were previously sold and then leased back from the purchasers over a non-cancellable period of 20 years. The leases contain renewal options at lease termination, with three options to renew for 10 additional years each and contain a right of first offer in the event the property owner intends to sell any portion or all of the property to a third party. These rights and obligations constitute continuing involvement, which resulted in failed sale-leaseback (financing) accounting. The financing liabilities have implied interest rates ranging from 5.0% to 7.9% and have original expiration dates between September 1, 2024 and June 1, 2025. At the conclusion of the 20-year lease period, the financing liability residual will correspond to the carrying value of the land.

The Financing liability, net of debt discount, was follows:


	As of December 31,
(In thousands)	2023		2022
Financing liability	$	93,978	$	92,160
Debt discount	(104)		(109)
Financing liability, net of debt discount	93,874		92,051
Less: current portion	2,473		2,281
Financing liability, non-current portion	$	91,401	$	89,770

Principal and interest payments made were as follows:


	Year Ended December 31,
(In thousands)	2023		2022
Principal	$	2,177	$	2,212
Interest	6,021		7,029

On December 29, 2022, we repurchased real estate in Nashville, Tennessee and Elkhart, Indiana that was previously leased through two finance leases for $24.5 million. Upon the repurchase, the finance leases were terminated. There were no repurchases of leased properties during the year ended December 31, 2023.

Future minimum payments required by the arrangements are as follows (in thousands):


(In thousands)	Principal		Interest		Total Payment
2024	$	2,473	$	6,410	$	8,883
2025	2,826		6,231		9,057
2026	3,201		6,027		9,228
2027	3,616		5,797		9,413
2028	4,064		5,536		9,600
Thereafter	77,798		35,333		113,131
	$	93,978	$	65,334	$	159,312