Leases and Other

3 Months Ended

Mar. 31, 2023

Note 21. Leases and Other

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


		March 31,		December 31,
(in thousands)	Classification on the Condensed Consolidated Balance Sheet	2023		2022
Assets:
Operating lease assets	Operating lease ROU assets	$	101,699	$	102,777
Finance lease assets	Property and equipment, net		57,915		57,534
Total lease assets		$	159,614	$	160,311

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	14,723	$	13,463
Finance lease obligations	Current portion of debt and finance obligations		3,052		2,978
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		98,981		101,297
Finance lease obligations	Long-term debt and finance obligations		61,486		61,751
Total lease liabilities		$	178,242	$	179,489

The components of lease expense consisted of the following:


	Three Months Ended
	March 31,
(in thousands)	2023		2022
Finance lease cost:
Amortization of ROU assets	$	1,056	$	1,051
Interest on lease liabilities		1,410		1,435
Operating lease cost		6,207		5,822
Short-term lease cost		435		364
Variable lease cost		1,228		1,014
Total lease cost, net	$	10,336	$	9,686

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


	Three Months Ended
	March 31,
(in thousands)	2023			2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,652		$	5,798
Operating cash flows from finance leases	$	1,517		$	1,467
Financing cash flows from finance leases	$	605		$	724
ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,016		$	9,331
Finance leases(1)	$	(13	)	$	3,107

(1)

Includes terminations of equipment finance leases.


	March 31,			December 31,
	2023			2022
Weighted-average remaining lease term (years):
Operating leases		8.35			8.51
Finance leases		34.02			34.07
Weighted-average discount rate:
Operating leases		7.32	%		7.25	%
Finance leases		9.13	%		9.12	%

As of March 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
Remainder of 2023	$	16,543		$	6,615		$	23,158
2024		22,308			7,751			30,059
2025		20,190			6,927			27,117
2026		19,353			6,418			25,771
2027		15,836			6,255			22,091
Thereafter		64,052			180,776			244,828
Total future lease payments		158,282			214,742			373,024
Less: Amount representing interest		(44,578	)		(150,204	)		(194,782	)
Present value of minimum lease payments		113,704			64,538			178,242
Current portion		(14,723	)		(3,052	)		(17,775	)
Long-term portion	$	98,981		$	61,486		$	160,467

As of March 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)
Remainder of 2023	$	1,326
2024		1,548
2025		1,342
2026		1,105
2027		465
Thereafter		593
Total minimum rents	$	6,379

Lease Not Yet Commenced

As of March 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 Condensed 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.