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Leases | 3 Months Ended
--- | ---
Mar. 31, 2021
Leases [Abstract] |
Leases | Note 3. Leases The Company leases office space, manufacturing plants, warehouses, distribution centers, Company-operated Topgolf venues, vehicles, and equipment, as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the apparel business in Japan. The Company also enters into non-cancellable agreements with driving ranges and hospitality and entertainment venues to license Toptracer software and hardware, which are classified as sales-type leases. Deemed Landlord Financing Leases As of March 31, 2021, the Company accounted for two deemed landlord financing leases that did not meet the sale-leaseback criteria upon the completion of construction in accordance with ASC 842. As of March 31, 2021, the Company was the accounting owner of ten landlord buildings under deemed landlord financing contracts. As of March 31, 2021, the net book value included in property, plant and equipment related to these buildings on the consolidated condensed balance sheet totaled $280,864,000. The Company depreciates these properties over the initial lease term of 20 years or over their estimated useful life, whichever is shorter. Sales-Type Leases Leasing revenue attributed to sales-type leases was $3,893,000 for the three months ended March 31, 2021, which was included in services revenues within the consolidated condensed statement of operations. Leasing receivables related to the Company’s net investment in sales-type leases are as follows (in thousands):
| Balance Sheet Location |  | March 31, 2021
Leasing receivables, net - current | Other current assets |  | $ | 8,957 |
Leasing receivables - long-term | Other assets |  | 29,903 |
|  |  | $ | 38,860 |
Operating Leases In response to the COVID-19 pandemic, the Company received certain rent concessions in the form of deferments and abatement on a few of its operating leases. The Company opted to not modify these leases in accordance with the FASB Staff Q&A-Topic 842 and Topic 840: "Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic" issued in April 2020, and account for these concessions as if they were made under the enforceable rights included in the original agreement. Rent deferments were recorded as a payable and paid at a later negotiated date. Rent abatements were recognized as reductions in rent expense over the periods covered by the abatement period. As of March 31, 2021 and December 31, 2020 the Company recorded rent deferments of $3,425,000 and $687,000, respectively, which were recorded in accrued expenses, and $9,345,000 other long-term liabilities in the consolidated condensed balance sheets as of March 31, 2021. Of the rent deferments recorded as of March 31, 2021, $12,770,000 was recorded in connection with the Topgolf merger in March 2021. There were no rent abatements recorded for the three months ended March 31, 2021 or 2020. Supplemental balance sheet information related to leases is as follows (in thousands):
| Balance Sheet Location |  | March 31, 2021 |  | December 31, 2020
Operating Leases |  |  |  |  |
ROU assets, net | Operating lease ROU assets, net |  | $ | 1,041,395 |  |  | $ | 194,776 |
Lease liabilities, short-term | Operating lease liabilities, short-term |  | $ | 51,510 |  |  | $ | 29,579 |
Lease liabilities, long-term | Operating lease liabilities, long-term |  | $ | 1,155,551 |  |  | $ | 177,996 |
Deemed Landlord Financing |  |  |  |  |
Lease liabilities, short-term | Accrued expenses |  | $ | 1,567 |  |  | $ | — |
Lease liabilities, long-term | Deemed landlord financing, long-term |  | $ | 221,618 |  |  | $ | — |
Finance Leases |  |  |  |  |
ROU assets, net, | Other assets |  | $ | 2,761 |  |  | $ | 1,003 |
Lease liabilities, short-term | Accrued expenses |  | $ | 1,090 |  |  | $ | 252 |
Lease liabilities, long-term | Long-term other |  | $ | 1,903 |  |  | $ | 447 |
The components of lease expense are as follows (in thousands):
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Operating lease costs |  |  |  |  | $ | 20,497 |  |  | $ | 11,022 |
Financing lease costs: |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  | 322 |  |  | 167 |
Interest on lease liabilities |  |  |  |  | 20 |  |  | 11 |
Total financing lease costs |  |  |  |  | 342 |  |  | 178 |
Variable lease costs |  |  |  |  | 579 |  |  | 1,296 |
Total lease costs |  |  |  |  | $ | 21,418 |  |  | $ | 12,496 |
Other information related to leases was as follows (in thousands):
|  | Three Months Ended March 31,
Supplemental Cash Flows Information |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 18,852 |  |  | $ | 9,331 |
Operating cash flows from finance leases |  | $ | 9 |  |  | $ | 11 |
Financing cash flows from finance leases |  | $ | 95 |  |  | $ | 109 |
Lease liabilities arising from new ROU assets: |  |  |  |
Operating leases |  | $ | 28,419 |  |  | $ | 51,851 |
Finance leases |  | $ | 29 |  |  | $ | 22 |
| March 31, 2021 |  | December 31, 2020
Weighted average remaining lease term (years): |  |  |
Operating leases | 14.6 |  | 9.8
Finance leases | 2.8 |  | 3.0
Weighted average discount rate: |  |  |
Operating leases | 8.2 | % |  | 5.3 | %
Finance leases | 5.3 | % |  | 3.9 | %
Future minimum lease obligations as of March 31, 2021 were as follows (in thousands):
| Operating Leases |  | DLF Leases |  | Finance Leases
Remainder of 2021 | $ | 111,570 |  |  | $ | 13,253 |  |  | $ | 902 |
2022 | 146,151 |  |  | 20,026 |  |  | 1,171 |
2023 | 143,834 |  |  | 19,862 |  |  | 736 |
2024 | 141,171 |  |  | 20,054 |  |  | 352 |
2025 | 139,169 |  |  | 20,380 |  |  | 26 |
Thereafter | 1,464,450 |  |  | 355,973 |  |  | 9 |
Total future lease payments | 2,146,345 |  |  | 449,548 |  |  | 3,196 |
Less: imputed interest | 939,284 |  |  | 226,363 |  |  | 203 |
Total | $ | 1,207,061 |  |  | $ | 223,185 |  |  | $ | 2,993 |
Lease payments exclude $828,530,000 related to 14 non-cancellable leases that have been signed as of March 31, 2021 but have not yet commenced. Of the 14 leases, five are scheduled to commence in 2021. The Company's minimum capital commitment related to these leases was approximately $75,000,000 as of March 31, 2021. As the Company is actively involved in the construction of these properties, the Company recorded $58,103,000 in construction costs within property, plant and equipment as of March 31, 2021. In addition, the Company recorded $54,874,000 in advances from the landlord in connection with properties under construction as of March 31, 2021. The Company will determine the lease classification for properties currently under construction at the end of the construction period. The initial base term upon the commencement of these leases is generally 20 years.
Leases | Note 3. Leases The Company leases office space, manufacturing plants, warehouses, distribution centers, Company-operated Topgolf venues, vehicles, and equipment, as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the apparel business in Japan. The Company also enters into non-cancellable agreements with driving ranges and hospitality and entertainment venues to license Toptracer software and hardware, which are classified as sales-type leases. Deemed Landlord Financing Leases As of March 31, 2021, the Company accounted for two deemed landlord financing leases that did not meet the sale-leaseback criteria upon the completion of construction in accordance with ASC 842. As of March 31, 2021, the Company was the accounting owner of ten landlord buildings under deemed landlord financing contracts. As of March 31, 2021, the net book value included in property, plant and equipment related to these buildings on the consolidated condensed balance sheet totaled $280,864,000. The Company depreciates these properties over the initial lease term of 20 years or over their estimated useful life, whichever is shorter. Sales-Type Leases Leasing revenue attributed to sales-type leases was $3,893,000 for the three months ended March 31, 2021, which was included in services revenues within the consolidated condensed statement of operations. Leasing receivables related to the Company’s net investment in sales-type leases are as follows (in thousands):
| Balance Sheet Location |  | March 31, 2021
Leasing receivables, net - current | Other current assets |  | $ | 8,957 |
Leasing receivables - long-term | Other assets |  | 29,903 |
|  |  | $ | 38,860 |
Operating Leases In response to the COVID-19 pandemic, the Company received certain rent concessions in the form of deferments and abatement on a few of its operating leases. The Company opted to not modify these leases in accordance with the FASB Staff Q&A-Topic 842 and Topic 840: "Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic" issued in April 2020, and account for these concessions as if they were made under the enforceable rights included in the original agreement. Rent deferments were recorded as a payable and paid at a later negotiated date. Rent abatements were recognized as reductions in rent expense over the periods covered by the abatement period. As of March 31, 2021 and December 31, 2020 the Company recorded rent deferments of $3,425,000 and $687,000, respectively, which were recorded in accrued expenses, and $9,345,000 other long-term liabilities in the consolidated condensed balance sheets as of March 31, 2021. Of the rent deferments recorded as of March 31, 2021, $12,770,000 was recorded in connection with the Topgolf merger in March 2021. There were no rent abatements recorded for the three months ended March 31, 2021 or 2020. Supplemental balance sheet information related to leases is as follows (in thousands):
| Balance Sheet Location |  | March 31, 2021 |  | December 31, 2020
Operating Leases |  |  |  |  |
ROU assets, net | Operating lease ROU assets, net |  | $ | 1,041,395 |  |  | $ | 194,776 |
Lease liabilities, short-term | Operating lease liabilities, short-term |  | $ | 51,510 |  |  | $ | 29,579 |
Lease liabilities, long-term | Operating lease liabilities, long-term |  | $ | 1,155,551 |  |  | $ | 177,996 |
Deemed Landlord Financing |  |  |  |  |
Lease liabilities, short-term | Accrued expenses |  | $ | 1,567 |  |  | $ | — |
Lease liabilities, long-term | Deemed landlord financing, long-term |  | $ | 221,618 |  |  | $ | — |
Finance Leases |  |  |  |  |
ROU assets, net, | Other assets |  | $ | 2,761 |  |  | $ | 1,003 |
Lease liabilities, short-term | Accrued expenses |  | $ | 1,090 |  |  | $ | 252 |
Lease liabilities, long-term | Long-term other |  | $ | 1,903 |  |  | $ | 447 |
The components of lease expense are as follows (in thousands):
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Operating lease costs |  |  |  |  | $ | 20,497 |  |  | $ | 11,022 |
Financing lease costs: |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  | 322 |  |  | 167 |
Interest on lease liabilities |  |  |  |  | 20 |  |  | 11 |
Total financing lease costs |  |  |  |  | 342 |  |  | 178 |
Variable lease costs |  |  |  |  | 579 |  |  | 1,296 |
Total lease costs |  |  |  |  | $ | 21,418 |  |  | $ | 12,496 |
Other information related to leases was as follows (in thousands):
|  | Three Months Ended March 31,
Supplemental Cash Flows Information |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 18,852 |  |  | $ | 9,331 |
Operating cash flows from finance leases |  | $ | 9 |  |  | $ | 11 |
Financing cash flows from finance leases |  | $ | 95 |  |  | $ | 109 |
Lease liabilities arising from new ROU assets: |  |  |  |
Operating leases |  | $ | 28,419 |  |  | $ | 51,851 |
Finance leases |  | $ | 29 |  |  | $ | 22 |
| March 31, 2021 |  | December 31, 2020
Weighted average remaining lease term (years): |  |  |
Operating leases | 14.6 |  | 9.8
Finance leases | 2.8 |  | 3.0
Weighted average discount rate: |  |  |
Operating leases | 8.2 | % |  | 5.3 | %
Finance leases | 5.3 | % |  | 3.9 | %
Future minimum lease obligations as of March 31, 2021 were as follows (in thousands):
| Operating Leases |  | DLF Leases |  | Finance Leases
Remainder of 2021 | $ | 111,570 |  |  | $ | 13,253 |  |  | $ | 902 |
2022 | 146,151 |  |  | 20,026 |  |  | 1,171 |
2023 | 143,834 |  |  | 19,862 |  |  | 736 |
2024 | 141,171 |  |  | 20,054 |  |  | 352 |
2025 | 139,169 |  |  | 20,380 |  |  | 26 |
Thereafter | 1,464,450 |  |  | 355,973 |  |  | 9 |
Total future lease payments | 2,146,345 |  |  | 449,548 |  |  | 3,196 |
Less: imputed interest | 939,284 |  |  | 226,363 |  |  | 203 |
Total | $ | 1,207,061 |  |  | $ | 223,185 |  |  | $ | 2,993 |
Lease payments exclude $828,530,000 related to 14 non-cancellable leases that have been signed as of March 31, 2021 but have not yet commenced. Of the 14 leases, five are scheduled to commence in 2021. The Company's minimum capital commitment related to these leases was approximately $75,000,000 as of March 31, 2021. As the Company is actively involved in the construction of these properties, the Company recorded $58,103,000 in construction costs within property, plant and equipment as of March 31, 2021. In addition, the Company recorded $54,874,000 in advances from the landlord in connection with properties under construction as of March 31, 2021. The Company will determine the lease classification for properties currently under construction at the end of the construction period. The initial base term upon the commencement of these leases is generally 20 years.
Leases | Note 3. Leases The Company leases office space, manufacturing plants, warehouses, distribution centers, Company-operated Topgolf venues, vehicles, and equipment, as well as retail and/or outlet locations related to the TravisMathew and Jack Wolfskin businesses and the apparel business in Japan. The Company also enters into non-cancellable agreements with driving ranges and hospitality and entertainment venues to license Toptracer software and hardware, which are classified as sales-type leases. Deemed Landlord Financing Leases As of March 31, 2021, the Company accounted for two deemed landlord financing leases that did not meet the sale-leaseback criteria upon the completion of construction in accordance with ASC 842. As of March 31, 2021, the Company was the accounting owner of ten landlord buildings under deemed landlord financing contracts. As of March 31, 2021, the net book value included in property, plant and equipment related to these buildings on the consolidated condensed balance sheet totaled $280,864,000. The Company depreciates these properties over the initial lease term of 20 years or over their estimated useful life, whichever is shorter. Sales-Type Leases Leasing revenue attributed to sales-type leases was $3,893,000 for the three months ended March 31, 2021, which was included in services revenues within the consolidated condensed statement of operations. Leasing receivables related to the Company’s net investment in sales-type leases are as follows (in thousands):
| Balance Sheet Location |  | March 31, 2021
Leasing receivables, net - current | Other current assets |  | $ | 8,957 |
Leasing receivables - long-term | Other assets |  | 29,903 |
|  |  | $ | 38,860 |
Operating Leases In response to the COVID-19 pandemic, the Company received certain rent concessions in the form of deferments and abatement on a few of its operating leases. The Company opted to not modify these leases in accordance with the FASB Staff Q&A-Topic 842 and Topic 840: "Accounting For Lease Concessions Related to the Effects of the COVID-19 Pandemic" issued in April 2020, and account for these concessions as if they were made under the enforceable rights included in the original agreement. Rent deferments were recorded as a payable and paid at a later negotiated date. Rent abatements were recognized as reductions in rent expense over the periods covered by the abatement period. As of March 31, 2021 and December 31, 2020 the Company recorded rent deferments of $3,425,000 and $687,000, respectively, which were recorded in accrued expenses, and $9,345,000 other long-term liabilities in the consolidated condensed balance sheets as of March 31, 2021. Of the rent deferments recorded as of March 31, 2021, $12,770,000 was recorded in connection with the Topgolf merger in March 2021. There were no rent abatements recorded for the three months ended March 31, 2021 or 2020. Supplemental balance sheet information related to leases is as follows (in thousands):
| Balance Sheet Location |  | March 31, 2021 |  | December 31, 2020
Operating Leases |  |  |  |  |
ROU assets, net | Operating lease ROU assets, net |  | $ | 1,041,395 |  |  | $ | 194,776 |
Lease liabilities, short-term | Operating lease liabilities, short-term |  | $ | 51,510 |  |  | $ | 29,579 |
Lease liabilities, long-term | Operating lease liabilities, long-term |  | $ | 1,155,551 |  |  | $ | 177,996 |
Deemed Landlord Financing |  |  |  |  |
Lease liabilities, short-term | Accrued expenses |  | $ | 1,567 |  |  | $ | — |
Lease liabilities, long-term | Deemed landlord financing, long-term |  | $ | 221,618 |  |  | $ | — |
Finance Leases |  |  |  |  |
ROU assets, net, | Other assets |  | $ | 2,761 |  |  | $ | 1,003 |
Lease liabilities, short-term | Accrued expenses |  | $ | 1,090 |  |  | $ | 252 |
Lease liabilities, long-term | Long-term other |  | $ | 1,903 |  |  | $ | 447 |
The components of lease expense are as follows (in thousands):
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Operating lease costs |  |  |  |  | $ | 20,497 |  |  | $ | 11,022 |
Financing lease costs: |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  | 322 |  |  | 167 |
Interest on lease liabilities |  |  |  |  | 20 |  |  | 11 |
Total financing lease costs |  |  |  |  | 342 |  |  | 178 |
Variable lease costs |  |  |  |  | 579 |  |  | 1,296 |
Total lease costs |  |  |  |  | $ | 21,418 |  |  | $ | 12,496 |
Other information related to leases was as follows (in thousands):
|  | Three Months Ended March 31,
Supplemental Cash Flows Information |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 18,852 |  |  | $ | 9,331 |
Operating cash flows from finance leases |  | $ | 9 |  |  | $ | 11 |
Financing cash flows from finance leases |  | $ | 95 |  |  | $ | 109 |
Lease liabilities arising from new ROU assets: |  |  |  |
Operating leases |  | $ | 28,419 |  |  | $ | 51,851 |
Finance leases |  | $ | 29 |  |  | $ | 22 |
| March 31, 2021 |  | December 31, 2020
Weighted average remaining lease term (years): |  |  |
Operating leases | 14.6 |  | 9.8
Finance leases | 2.8 |  | 3.0
Weighted average discount rate: |  |  |
Operating leases | 8.2 | % |  | 5.3 | %
Finance leases | 5.3 | % |  | 3.9 | %
Future minimum lease obligations as of March 31, 2021 were as follows (in thousands):
| Operating Leases |  | DLF Leases |  | Finance Leases
Remainder of 2021 | $ | 111,570 |  |  | $ | 13,253 |  |  | $ | 902 |
2022 | 146,151 |  |  | 20,026 |  |  | 1,171 |
2023 | 143,834 |  |  | 19,862 |  |  | 736 |
2024 | 141,171 |  |  | 20,054 |  |  | 352 |
2025 | 139,169 |  |  | 20,380 |  |  | 26 |
Thereafter | 1,464,450 |  |  | 355,973 |  |  | 9 |
Total future lease payments | 2,146,345 |  |  | 449,548 |  |  | 3,196 |
Less: imputed interest | 939,284 |  |  | 226,363 |  |  | 203 |
Total | $ | 1,207,061 |  |  | $ | 223,185 |  |  | $ | 2,993 |
Lease payments exclude $828,530,000 related to 14 non-cancellable leases that have been signed as of March 31, 2021 but have not yet commenced. Of the 14 leases, five are scheduled to commence in 2021. The Company's minimum capital commitment related to these leases was approximately $75,000,000 as of March 31, 2021. As the Company is actively involved in the construction of these properties, the Company recorded $58,103,000 in construction costs within property, plant and equipment as of March 31, 2021. In addition, the Company recorded $54,874,000 in advances from the landlord in connection with properties under construction as of March 31, 2021. The Company will determine the lease classification for properties currently under construction at the end of the construction period. The initial base term upon the commencement of these leases is generally 20 years.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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