Leases and Other

6 Months Ended

Jun. 30, 2024

Note 20. Leases and Other

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


		June 30,		December 31,
(in thousands)	Classification on the Condensed Consolidated Balance Sheet	2024		2023
Assets:
Operating lease ROU assets	Operating lease ROU assets	$	102,997	$	109,774
Finance lease ROU assets	Property and equipment, net		53,800		57,120
Total lease ROU assets		$	156,797	$	166,894

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	17,326	$	17,334
Finance lease obligations	Current portion of debt and finance obligations		2,590		2,742
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		99,456		106,109
Finance lease obligations	Long-term debt and finance obligations		60,680		61,187
Total lease liabilities		$	180,052	$	187,372

The components of lease expense consisted of the following:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2024		2023		2024		2023
Finance lease cost:
Amortization of ROU assets	$	1,103	$	1,048	$	2,216	$	2,104
Interest on lease liabilities		1,424		1,427		2,860		2,837
Operating lease cost		6,824		6,586		13,687		12,793
Short-term lease cost		996		950		1,639		1,385
Variable lease cost		1,296		1,510		2,536		2,738
Total lease cost, net	$	11,643	$	11,521	$	22,938	$	21,857

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2024		2023		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,634	$	6,669	$	14,395	$	13,321
Operating cash flows from finance leases	$	1,601	$	1,535	$	3,167	$	3,052
Financing cash flows from finance leases	$	747	$	572	$	1,565	$	1,177
ROU assets obtained in exchange for lease obligations:
Operating leases	$	383	$	14,571	$	3,628	$	17,587
Finance leases(1)	$	500	$	376	$	1,242	$	363

(1)

Includes terminations of equipment finance leases during 2023.


	June 30,			December 31,
	2024			2023
Weighted-average remaining lease term (years):
Operating leases		7.35			7.64
Finance leases		33.15			33.47
Weighted-average discount rate:
Operating leases		7.93	%		7.88	%
Finance leases		9.19	%		9.17	%

As of June 30, 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	$	12,226		$	4,048		$	16,274
2025		26,203			7,827			34,030
2026		25,081			7,131			32,212
2027		21,480			6,693			28,173
2028		15,636			6,353			21,989
Thereafter		56,576			174,868			231,444
Total future lease payments		157,202			206,920			364,122
Less: Amount representing interest		(40,420	)		(143,650	)		(184,070	)
Present value of minimum lease payments		116,782			63,270			180,052
Current portion		(17,326	)		(2,590	)		(19,916	)
Long-term portion	$	99,456		$	60,680		$	160,136

As of June 30, 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	$	1,045
2025		1,879
2026		1,630
2027		947
2028		775
Thereafter		2,078
Total minimum rents	$	8,354

Lease Not Yet Commenced

As of June 30, 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 was for a new FlyOver attraction, FlyOver Canada Toronto. Effective August 6, 2024, this facility lease was terminated. Refer to Note 24 – Subsequent Events for additional information.