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Leases
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Leases Leases
Sales-Type Leases
We enter into non-cancellable license agreements that provide software and hardware to driving ranges, hospitality venues, and entertainment venues. These license agreements are classified as sales-type leases.
Leasing revenue from sales-type leases is included in service revenues within the condensed consolidated statements of operations. Leasing revenue from sales-type leases consists of the selling price and interest income as follows (in millions):
Three Months Ended March 31,
20232022
Sales-type lease selling price(1)
$8.2 $7.1 
Cost of underlying assets(3.4)(3.3)
Operating profit$4.8 $3.8 
Interest income$1.3 $0.9 
Leasing revenue attributable to sales-type leases$9.5 $8.0 
(1) Selling price is equal to the present value of lease payments over the non-cancellable term of the licensing agreement.
Leasing receivables related to our net investment in sales-type leases are as follows (in millions):
Balance Sheet LocationMarch 31, 2023December 31, 2022
Leasing receivables, net—short-termOther current assets$20.1 $17.5 
Leasing receivables, net—long-termOther assets59.8 57.5 
Total Leasing receivables$79.9 $75.0 

As of March 31, 2023, net maturities of sales-type lease receivables for the next five years and thereafter were as follows (in millions):
Sales-type Leases
Remainder of 2023$19.3 
202424.5 
202520.3 
202613.6 
20276.8 
Thereafter4.2 
Total future lease proceeds88.7 
Less: imputed interest8.8 
Total$79.9 
Operating and Finance Leases
As a lessee, we lease office spaces, manufacturing plants, warehouses, distribution centers, company-operated Topgolf venues, vehicles and equipment, as well as retail and outlet locations.
Supplemental balance sheet information related to leases is as follows (in millions):
Balance Sheet LocationMarch 31, 2023December 31, 2022
Operating Leases
Right-of-use (“ROU”) assets, netOperating lease ROU assets, net$1,411.3 $1,419.1 
Lease liabilities, short-termOperating lease liabilities, short-term$80.0 $76.4 
Lease liabilities, long-termOperating lease liabilities, long-term$1,430.9 $1,437.5 
Finance Leases
ROU assets, netOther assets$231.9 $215.7 
Lease liabilities, short-termAccounts payable and accrued expenses$1.6 $1.7 
Lease liabilities, long-termOther long-term liabilities $245.3 $225.9 
The components of lease expense are as follows (in millions):
Three Months Ended March 31,
20232022
Operating lease costs$44.0 $37.4 
Financing lease costs:
Amortization of right-of-use assets1.9 0.6 
Interest on lease liabilities3.6 2.1 
Total financing lease costs5.5 2.7 
Variable lease costs2.5 1.9 
Total lease costs$52.0 $42.0 
Other information related to leases (in millions):
Three Months Ended March 31,
Supplemental Cash Flows Information20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$38.0 $39.8 
Operating cash flows from finance leases$1.2 $2.1 
Financing cash flows from finance leases$1.0 $0.1 
Lease liabilities arising from new ROU assets:
Operating leases$9.7 $— 
Finance leases$17.6 $30.0 
March 31, 2023December 31, 2022
Weighted average remaining lease term (years):
Operating leases16.416.6
Finance leases36.636.5
Weighted average discount rate:
Operating leases5.6 %5.6 %
Finance leases6.1 %6.1 %
Future minimum lease obligations as of March 31, 2023 were as follows (in millions):
Operating LeasesFinance Leases
Remainder of 2023$108.3 $8.0 
2024155.9 14.4 
2025151.0 14.9 
2026146.7 15.0 
2027145.6 15.2 
Thereafter1,723.6 567.1 
Total future lease payments2,431.1 634.6 
Less: imputed interest920.2 387.7 
Total$1,510.9 $246.9 
Deemed Landlord Financing Obligations (“DLF” Obligations)
We work with third-party developers or real estate financing partners to acquire rights to land and fund the construction associated with certain venues under build-to-suit arrangements. While we seek to use financing partners, in certain instances, we typically fund a portion of the construction ourselves, and in some cases, all of the construction costs. In certain build-to-suit arrangements, we are deemed to have control of the underlying assets under construction and are therefore considered the accounting owner of these assets. Upon the completion of construction, we determine whether control has transferred to the financing partner. If control has not been transferred to our financing partners, we reverse the construction advance accumulated during the construction phase and record a DLF obligation. When land is acquired directly or venue construction is self-financed, we may enter into arrangements to sell those assets and lease back from a financing partner. In these cases, if control is not transferred upon the closing of the transaction and the commencement of the subsequent leaseback, we will record a DLF obligation associated with the cash proceeds.
The net book value of assets under DLF obligations included in property, plant and equipment, including the portion of the assets that we funded, was $852.9 million and $813.2 million, as of March 31, 2023 and December 31, 2022, respectively. Buildings capitalized in conjunction with these DLF obligations are depreciated, less their residual value, over the shorter period of 40 years or the lease term.
Supplemental balance sheet information related to DLF obligations is as follows (in millions):
Balance Sheet LocationMarch 31, 2023December 31, 2022
DLF obligations, short-termAccounts payable and accrued expenses$0.9 $2.4 
DLF obligations, long-termDeemed landlord financing obligations, long-term$707.5 $658.0 
The components of DLF obligation expenses are as follows (in millions):
Three Months Ended March 31,
20232022
Amortization of DLF obligations$5.1 $3.2 
Interest on DLF obligations15.2 10.1 
Total DLF contract expenses$20.3 $13.3 
Other information related to DLF obligations was as follows (in millions):
Three Months Ended March 31,
Supplemental Cash Flows Information20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from DLF obligations$8.6 $9.6 
Financing cash flows from DLF obligations$4.4 $— 
DLF obligations arising from new properties$45.7 $2.6 

March 31, 2023December 31, 2022
Weighted average remaining lease term (years)38.438.5
Weighted average discount rate8.9 %8.8 %
Future minimum financing obligations related to DLF obligations as of March 31, 2023 were as follows (in millions):
Remainder of 2023$36.6 
202456.4 
202556.8 
202657.8 
202759.0 
Thereafter2,708.4 
Total future lease payments2,975.0 
Less: imputed interest2,266.6 
Total$708.4 
Leases Under Construction
Our minimum capital commitment for leases under construction, net of amounts reimbursed by third-party real estate financing partners, was approximately $63.0 million as of March 31, 2023. As we are actively involved in the construction of these properties, we recorded $145.0 million in construction costs within property, plant and equipment as of March 31, 2023. Additionally, as of March 31, 2023, we recorded $51.2 million in construction advances from the landlords in connection with these properties. We 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. In addition, as of March 31, 2023, we had $1,005.5 million of future lease obligations related to 10 venues subject to non-cancellable leases that have been signed but have not yet commenced.
Leases Leases
Sales-Type Leases
We enter into non-cancellable license agreements that provide software and hardware to driving ranges, hospitality venues, and entertainment venues. These license agreements are classified as sales-type leases.
Leasing revenue from sales-type leases is included in service revenues within the condensed consolidated statements of operations. Leasing revenue from sales-type leases consists of the selling price and interest income as follows (in millions):
Three Months Ended March 31,
20232022
Sales-type lease selling price(1)
$8.2 $7.1 
Cost of underlying assets(3.4)(3.3)
Operating profit$4.8 $3.8 
Interest income$1.3 $0.9 
Leasing revenue attributable to sales-type leases$9.5 $8.0 
(1) Selling price is equal to the present value of lease payments over the non-cancellable term of the licensing agreement.
Leasing receivables related to our net investment in sales-type leases are as follows (in millions):
Balance Sheet LocationMarch 31, 2023December 31, 2022
Leasing receivables, net—short-termOther current assets$20.1 $17.5 
Leasing receivables, net—long-termOther assets59.8 57.5 
Total Leasing receivables$79.9 $75.0 

As of March 31, 2023, net maturities of sales-type lease receivables for the next five years and thereafter were as follows (in millions):
Sales-type Leases
Remainder of 2023$19.3 
202424.5 
202520.3 
202613.6 
20276.8 
Thereafter4.2 
Total future lease proceeds88.7 
Less: imputed interest8.8 
Total$79.9 
Operating and Finance Leases
As a lessee, we lease office spaces, manufacturing plants, warehouses, distribution centers, company-operated Topgolf venues, vehicles and equipment, as well as retail and outlet locations.
Supplemental balance sheet information related to leases is as follows (in millions):
Balance Sheet LocationMarch 31, 2023December 31, 2022
Operating Leases
Right-of-use (“ROU”) assets, netOperating lease ROU assets, net$1,411.3 $1,419.1 
Lease liabilities, short-termOperating lease liabilities, short-term$80.0 $76.4 
Lease liabilities, long-termOperating lease liabilities, long-term$1,430.9 $1,437.5 
Finance Leases
ROU assets, netOther assets$231.9 $215.7 
Lease liabilities, short-termAccounts payable and accrued expenses$1.6 $1.7 
Lease liabilities, long-termOther long-term liabilities $245.3 $225.9 
The components of lease expense are as follows (in millions):
Three Months Ended March 31,
20232022
Operating lease costs$44.0 $37.4 
Financing lease costs:
Amortization of right-of-use assets1.9 0.6 
Interest on lease liabilities3.6 2.1 
Total financing lease costs5.5 2.7 
Variable lease costs2.5 1.9 
Total lease costs$52.0 $42.0 
Other information related to leases (in millions):
Three Months Ended March 31,
Supplemental Cash Flows Information20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$38.0 $39.8 
Operating cash flows from finance leases$1.2 $2.1 
Financing cash flows from finance leases$1.0 $0.1 
Lease liabilities arising from new ROU assets:
Operating leases$9.7 $— 
Finance leases$17.6 $30.0 
March 31, 2023December 31, 2022
Weighted average remaining lease term (years):
Operating leases16.416.6
Finance leases36.636.5
Weighted average discount rate:
Operating leases5.6 %5.6 %
Finance leases6.1 %6.1 %
Future minimum lease obligations as of March 31, 2023 were as follows (in millions):
Operating LeasesFinance Leases
Remainder of 2023$108.3 $8.0 
2024155.9 14.4 
2025151.0 14.9 
2026146.7 15.0 
2027145.6 15.2 
Thereafter1,723.6 567.1 
Total future lease payments2,431.1 634.6 
Less: imputed interest920.2 387.7 
Total$1,510.9 $246.9 
Deemed Landlord Financing Obligations (“DLF” Obligations)
We work with third-party developers or real estate financing partners to acquire rights to land and fund the construction associated with certain venues under build-to-suit arrangements. While we seek to use financing partners, in certain instances, we typically fund a portion of the construction ourselves, and in some cases, all of the construction costs. In certain build-to-suit arrangements, we are deemed to have control of the underlying assets under construction and are therefore considered the accounting owner of these assets. Upon the completion of construction, we determine whether control has transferred to the financing partner. If control has not been transferred to our financing partners, we reverse the construction advance accumulated during the construction phase and record a DLF obligation. When land is acquired directly or venue construction is self-financed, we may enter into arrangements to sell those assets and lease back from a financing partner. In these cases, if control is not transferred upon the closing of the transaction and the commencement of the subsequent leaseback, we will record a DLF obligation associated with the cash proceeds.
The net book value of assets under DLF obligations included in property, plant and equipment, including the portion of the assets that we funded, was $852.9 million and $813.2 million, as of March 31, 2023 and December 31, 2022, respectively. Buildings capitalized in conjunction with these DLF obligations are depreciated, less their residual value, over the shorter period of 40 years or the lease term.
Supplemental balance sheet information related to DLF obligations is as follows (in millions):
Balance Sheet LocationMarch 31, 2023December 31, 2022
DLF obligations, short-termAccounts payable and accrued expenses$0.9 $2.4 
DLF obligations, long-termDeemed landlord financing obligations, long-term$707.5 $658.0 
The components of DLF obligation expenses are as follows (in millions):
Three Months Ended March 31,
20232022
Amortization of DLF obligations$5.1 $3.2 
Interest on DLF obligations15.2 10.1 
Total DLF contract expenses$20.3 $13.3 
Other information related to DLF obligations was as follows (in millions):
Three Months Ended March 31,
Supplemental Cash Flows Information20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from DLF obligations$8.6 $9.6 
Financing cash flows from DLF obligations$4.4 $— 
DLF obligations arising from new properties$45.7 $2.6 

March 31, 2023December 31, 2022
Weighted average remaining lease term (years)38.438.5
Weighted average discount rate8.9 %8.8 %
Future minimum financing obligations related to DLF obligations as of March 31, 2023 were as follows (in millions):
Remainder of 2023$36.6 
202456.4 
202556.8 
202657.8 
202759.0 
Thereafter2,708.4 
Total future lease payments2,975.0 
Less: imputed interest2,266.6 
Total$708.4 
Leases Under Construction
Our minimum capital commitment for leases under construction, net of amounts reimbursed by third-party real estate financing partners, was approximately $63.0 million as of March 31, 2023. As we are actively involved in the construction of these properties, we recorded $145.0 million in construction costs within property, plant and equipment as of March 31, 2023. Additionally, as of March 31, 2023, we recorded $51.2 million in construction advances from the landlords in connection with these properties. We 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. In addition, as of March 31, 2023, we had $1,005.5 million of future lease obligations related to 10 venues subject to non-cancellable leases that have been signed but have not yet commenced.
Leases Leases
Sales-Type Leases
We enter into non-cancellable license agreements that provide software and hardware to driving ranges, hospitality venues, and entertainment venues. These license agreements are classified as sales-type leases.
Leasing revenue from sales-type leases is included in service revenues within the condensed consolidated statements of operations. Leasing revenue from sales-type leases consists of the selling price and interest income as follows (in millions):
Three Months Ended March 31,
20232022
Sales-type lease selling price(1)
$8.2 $7.1 
Cost of underlying assets(3.4)(3.3)
Operating profit$4.8 $3.8 
Interest income$1.3 $0.9 
Leasing revenue attributable to sales-type leases$9.5 $8.0 
(1) Selling price is equal to the present value of lease payments over the non-cancellable term of the licensing agreement.
Leasing receivables related to our net investment in sales-type leases are as follows (in millions):
Balance Sheet LocationMarch 31, 2023December 31, 2022
Leasing receivables, net—short-termOther current assets$20.1 $17.5 
Leasing receivables, net—long-termOther assets59.8 57.5 
Total Leasing receivables$79.9 $75.0 

As of March 31, 2023, net maturities of sales-type lease receivables for the next five years and thereafter were as follows (in millions):
Sales-type Leases
Remainder of 2023$19.3 
202424.5 
202520.3 
202613.6 
20276.8 
Thereafter4.2 
Total future lease proceeds88.7 
Less: imputed interest8.8 
Total$79.9 
Operating and Finance Leases
As a lessee, we lease office spaces, manufacturing plants, warehouses, distribution centers, company-operated Topgolf venues, vehicles and equipment, as well as retail and outlet locations.
Supplemental balance sheet information related to leases is as follows (in millions):
Balance Sheet LocationMarch 31, 2023December 31, 2022
Operating Leases
Right-of-use (“ROU”) assets, netOperating lease ROU assets, net$1,411.3 $1,419.1 
Lease liabilities, short-termOperating lease liabilities, short-term$80.0 $76.4 
Lease liabilities, long-termOperating lease liabilities, long-term$1,430.9 $1,437.5 
Finance Leases
ROU assets, netOther assets$231.9 $215.7 
Lease liabilities, short-termAccounts payable and accrued expenses$1.6 $1.7 
Lease liabilities, long-termOther long-term liabilities $245.3 $225.9 
The components of lease expense are as follows (in millions):
Three Months Ended March 31,
20232022
Operating lease costs$44.0 $37.4 
Financing lease costs:
Amortization of right-of-use assets1.9 0.6 
Interest on lease liabilities3.6 2.1 
Total financing lease costs5.5 2.7 
Variable lease costs2.5 1.9 
Total lease costs$52.0 $42.0 
Other information related to leases (in millions):
Three Months Ended March 31,
Supplemental Cash Flows Information20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$38.0 $39.8 
Operating cash flows from finance leases$1.2 $2.1 
Financing cash flows from finance leases$1.0 $0.1 
Lease liabilities arising from new ROU assets:
Operating leases$9.7 $— 
Finance leases$17.6 $30.0 
March 31, 2023December 31, 2022
Weighted average remaining lease term (years):
Operating leases16.416.6
Finance leases36.636.5
Weighted average discount rate:
Operating leases5.6 %5.6 %
Finance leases6.1 %6.1 %
Future minimum lease obligations as of March 31, 2023 were as follows (in millions):
Operating LeasesFinance Leases
Remainder of 2023$108.3 $8.0 
2024155.9 14.4 
2025151.0 14.9 
2026146.7 15.0 
2027145.6 15.2 
Thereafter1,723.6 567.1 
Total future lease payments2,431.1 634.6 
Less: imputed interest920.2 387.7 
Total$1,510.9 $246.9 
Deemed Landlord Financing Obligations (“DLF” Obligations)
We work with third-party developers or real estate financing partners to acquire rights to land and fund the construction associated with certain venues under build-to-suit arrangements. While we seek to use financing partners, in certain instances, we typically fund a portion of the construction ourselves, and in some cases, all of the construction costs. In certain build-to-suit arrangements, we are deemed to have control of the underlying assets under construction and are therefore considered the accounting owner of these assets. Upon the completion of construction, we determine whether control has transferred to the financing partner. If control has not been transferred to our financing partners, we reverse the construction advance accumulated during the construction phase and record a DLF obligation. When land is acquired directly or venue construction is self-financed, we may enter into arrangements to sell those assets and lease back from a financing partner. In these cases, if control is not transferred upon the closing of the transaction and the commencement of the subsequent leaseback, we will record a DLF obligation associated with the cash proceeds.
The net book value of assets under DLF obligations included in property, plant and equipment, including the portion of the assets that we funded, was $852.9 million and $813.2 million, as of March 31, 2023 and December 31, 2022, respectively. Buildings capitalized in conjunction with these DLF obligations are depreciated, less their residual value, over the shorter period of 40 years or the lease term.
Supplemental balance sheet information related to DLF obligations is as follows (in millions):
Balance Sheet LocationMarch 31, 2023December 31, 2022
DLF obligations, short-termAccounts payable and accrued expenses$0.9 $2.4 
DLF obligations, long-termDeemed landlord financing obligations, long-term$707.5 $658.0 
The components of DLF obligation expenses are as follows (in millions):
Three Months Ended March 31,
20232022
Amortization of DLF obligations$5.1 $3.2 
Interest on DLF obligations15.2 10.1 
Total DLF contract expenses$20.3 $13.3 
Other information related to DLF obligations was as follows (in millions):
Three Months Ended March 31,
Supplemental Cash Flows Information20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from DLF obligations$8.6 $9.6 
Financing cash flows from DLF obligations$4.4 $— 
DLF obligations arising from new properties$45.7 $2.6 

March 31, 2023December 31, 2022
Weighted average remaining lease term (years)38.438.5
Weighted average discount rate8.9 %8.8 %
Future minimum financing obligations related to DLF obligations as of March 31, 2023 were as follows (in millions):
Remainder of 2023$36.6 
202456.4 
202556.8 
202657.8 
202759.0 
Thereafter2,708.4 
Total future lease payments2,975.0 
Less: imputed interest2,266.6 
Total$708.4 
Leases Under Construction
Our minimum capital commitment for leases under construction, net of amounts reimbursed by third-party real estate financing partners, was approximately $63.0 million as of March 31, 2023. As we are actively involved in the construction of these properties, we recorded $145.0 million in construction costs within property, plant and equipment as of March 31, 2023. Additionally, as of March 31, 2023, we recorded $51.2 million in construction advances from the landlords in connection with these properties. We 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. In addition, as of March 31, 2023, we had $1,005.5 million of future lease obligations related to 10 venues subject to non-cancellable leases that have been signed but have not yet commenced.