Leases and Other

9 Months Ended

Sep. 30, 2023

Note 21. Leases and Other

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


		September 30,		December 31,
(in thousands)	Classification on the Condensed Consolidated Balance Sheet	2023		2022
Assets:
Operating lease ROU assets	Operating lease ROU assets	$	112,763	$	102,777
Finance lease ROU assets	Property and equipment, net		56,468		57,534
Total lease ROU assets		$	169,231	$	160,311

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	14,854	$	13,463
Finance lease obligations	Current portion of debt and finance obligations		2,680		2,978
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		110,067		101,297
Finance lease obligations	Long-term debt and finance obligations		60,826		61,751
Total lease liabilities		$	188,427	$	179,489

The components of lease expense consisted of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2023		2022		2023		2022
Finance lease cost:
Amortization of ROU assets	$	1,092	$	1,060	$	3,196	$	3,156
Interest on lease liabilities		1,430		1,478		4,267		4,380
Operating lease cost		6,753		6,426		19,546		18,452
Short-term lease cost		1,431		968		2,816		2,081
Variable lease cost		1,220		1,420		3,958		3,966
Total lease cost, net	$	11,926	$	11,352	$	33,783	$	32,035

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2023		2022		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,862	$	5,480	$	20,183	$	17,347
Operating cash flows from finance leases	$	1,512	$	1,551	$	4,564	$	4,517
Financing cash flows from finance leases	$	687	$	854	$	2,415	$	2,451
ROU assets obtained in exchange for lease obligations:
Operating leases	$	5,803	$	8,095	$	23,390	$	18,806
Finance leases(1)	$	433	$	805	$	796	$	5,129

(1)

Includes terminations of equipment finance leases that occurred during the first quarter of 2023.


	September 30,			December 31,
	2023			2022
Weighted-average remaining lease term (years):
Operating leases		7.80			8.51
Finance leases		33.94			34.07
Weighted-average discount rate:
Operating leases		7.87	%		7.25	%
Finance leases		9.16	%		9.12	%

As of September 30, 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	$	3,983		$	2,136		$	6,119
2024		27,391			8,052			35,443
2025		25,157			7,227			32,384
2026		24,255			6,552			30,807
2027		20,752			6,250			27,002
Thereafter		70,664			180,718			251,382
Total future lease payments		172,202			210,935			383,137
Less: Amount representing interest		(47,281	)		(147,429	)		(194,710	)
Present value of minimum lease payments		124,921			63,506			188,427
Current portion		(14,854	)		(2,680	)		(17,534	)
Long-term portion	$	110,067		$	60,826		$	170,893

As of September 30, 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	$	869
2024		1,925
2025		1,722
2026		1,562
2027		918
Thereafter		2,838
Total minimum rents	$	9,834

Lease Not Yet Commenced

As of September 30, 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.