18. Finance Obligation

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The Company has sold future services to be performed associated with certain sale/leaseback transactions and recorded the balance as a finance obligation.  The outstanding balance of this obligation at June 30, 2023 was $358.7 million, $71.9 million and $286.8 million of which was classified as short-term and long-term, respectively, on the accompanying unaudited interim condensed consolidated balance sheet. The outstanding balance of this obligation at December 31, 2022 was $312.1 million, $55.4 million and $256.6 million of which was classified as short-term and long-term, respectively. The amount is amortized using the effective interest method. Interest expense recorded related to finance obligations for the three months ended June 30, 2023 and 2022 was $9.8 million and $6.9 million, respectively. Interest expense recorded related to finance obligations for the six months ended June 30, 2023 and 2022 was $19.0 million and $13.6 million, respectively. The fair value of this finance obligation approximated the carrying value as of June 30, 2023 and December 31, 2022.

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In prior periods, the Company entered into sale/leaseback transactions that were accounted for as financing transactions and reported as part of finance obligations. The outstanding balance of finance obligations related to sale/leaseback transactions at June 30, 2023 was $18.2 million, $14.7 million and $3.5 million of which was classified as short-term and long-term, respectively on the accompanying consolidated balance sheet. The outstanding balance of this obligation at December 31, 2022 was $17.2 million, $3.5 million and $13.7 million of which was classified as short-term and long-term, respectively on the accompanying consolidated balance sheets. The fair value of this finance obligation approximated the carrying value as of June 30, 2023 and December 31, 2022.

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Future minimum payments under finance obligations notes above as of June 30, 2023 were as follows (in thousands):

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