Leases and Other

3 Months Ended

Mar. 31, 2024

Note 20. 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	2024		2023
Assets:
Operating lease ROU assets	Operating lease ROU assets	$	107,546	$	109,774
Finance lease ROU assets	Property and equipment, net		55,677		57,120
Total lease ROU assets		$	163,223	$	166,894

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	17,762	$	17,334
Finance lease obligations	Current portion of debt and finance obligations		2,755		2,742
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		103,855		106,109
Finance lease obligations	Long-term debt and finance obligations		60,848		61,187
Total lease liabilities		$	185,220	$	187,372

The components of lease expense consisted of the following:


	Three Months Ended
	March 31,
(in thousands)	2024		2023
Finance lease cost:
Amortization of ROU assets	$	1,113	$	1,056
Interest on lease liabilities		1,436		1,410
Operating lease cost		6,863		6,207
Short-term lease cost		643		435
Variable lease cost		1,240		1,228
Total lease cost, net	$	11,295	$	10,336

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


	Three Months Ended
	March 31,
(in thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,761	$	6,652
Operating cash flows from finance leases	$	1,566	$	1,517
Financing cash flows from finance leases	$	818	$	605
ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,245	$	3,016
Finance leases(1)	$	742	$	(13	)

(1)

Includes terminations of equipment finance leases during 2023.


	March 31,			December 31,
	2024			2023
Weighted-average remaining lease term (years):
Operating leases		7.48			7.64
Finance leases		33.35			33.47
Weighted-average discount rate:
Operating leases		7.92	%		7.88	%
Finance leases		9.18	%		9.17	%

As of March 31, 2024, 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 2024	$	19,744		$	6,371		$	26,115
2025		26,026			7,678			33,704
2026		25,021			6,980			32,001
2027		21,421			6,557			27,978
2028		15,606			6,223			21,829
Thereafter		56,591			174,615			231,206
Total future lease payments		164,409			208,424			372,833
Less: Amount representing interest		(42,792	)		(144,821	)		(187,613	)
Present value of minimum lease payments		121,617			63,603			185,220
Current portion		(17,762	)		(2,755	)		(20,517	)
Long-term portion	$	103,855		$	60,848		$	164,703

As of March 31, 2024, 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 2024	$	1,820
2025		1,831
2026		1,581
2027		938
2028		764
Thereafter		2,075
Total minimum rents	$	9,009

Lease Not Yet Commenced

As of March 31, 2024, 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.