XML 30 R14.htm IDEA: XBRL DOCUMENT v3.24.0.1

Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

Sales-Type Leases

We enter into non-cancelable license agreements primarily related to Toptracer and Swing Suite (see Note 10) of which certain of these agreements are classified as sales-type leases. Revenue from sales-type leases (see Note 2) is included in services revenues within our consolidated statements of operations is as follows (in millions):

			Year Ended December 31,
			2023						2022						2021
Sales-type lease selling price(1)			$	30.3					$	36.3					$	29.8
Cost of underlying assets			(13.8)						(17.6)						(11.9)
Operating profit			$	16.5					$	18.7					$	17.9
Interest income			$	6.1					$	4.5					$	4.3
Leasing revenue attributable to sales-type leases			$	36.4					$	40.8					$	34.1
(1) Selling price is equal to the present value of lease payments over the non-cancelable term of the licensing agreement.

Leasing receivables related to our net investment in sales-type leases are as follows (in millions):

									December 31,
			Balance Sheet Location						2023						2022
Leasing receivables, net—short-term			Other current assets						$	26.9					$	17.5
Leasing receivables, net—long-term			Other assets, net						65.1						57.5
Total leasing receivables									$	92.0					$	75.0

Net maturities of sales-type lease receivables for the next five years and thereafter as of December 31, 2023, are as follows (in millions):

			Sales-Type Leases
2024			$	33.5
2025			28.2
2026			21.0
2027			12.4
2028			5.7
Thereafter			2.8
Total future lease payments			103.6
Less: imputed interest			11.6
Total			$	92.0

Operating Leases, Financing Leases and DLF Obligations

Supplemental balance sheet information related to our operating and financing ROU assets and lease liabilities and DLF assets and obligations is as follows (in millions):

									December 31,
			Balance Sheet Location						2023						2022
Assets
Operating lease ROU assets, net			Operating lease ROU assets, net						$	1,410.1					$	1,419.1
Financing lease ROU assets, net			Other assets						$	257.4					$	215.7
DLF assets, net			Property, plant & equipment, net						$	917.3					$	813.2
Liabilities
Current
Operating lease liabilities, short-term			Operating lease liabilities, short-term						$	86.4					$	76.4
Financing lease liabilities, short-term			Accounts payable and accrued expenses						$	1.4					$	1.7
DLF obligations, short-term			Accounts payable and accrued expenses						$	0.1					$	2.4
Non-current
Operating lease liabilities, long-term			Operating lease liabilities, long-term						$	1,433.4					$	1,437.5
Financing lease liabilities, long-term			Other long-term liabilities						$	287.9					$	225.9
DLF obligations, long-term			Deemed landlord financing obligations						$	980.0					$	658.0

Leases Under Construction

Our minimum capital commitment for leases under construction, net of reimbursements from third-party real estate financing partners, was approximately $107.0 million as of December 31, 2023. As we are actively involved in the construction of these properties, we recorded $127.5 million in construction costs within property, plant and equipment and $59.3 million in construction advances from the landlords in connection with these properties as of December 31, 2023. We determine the lease classification for these properties at the end of the construction period. Upon lease commencement, the initial base term of these leases is generally 20 years, with most having options to extend for additional terms of up to 20 years. As of December 31, 2023, we had $364.9 million of future lease obligations related to four venues subject to non-cancellable leases that have been signed but have not yet commenced.

The components of lease expense included in our consolidated statements of operations for the periods presented below are as follows (in millions):

						Year Ended December 31,
						2023						2022						2021
Operating lease costs:
Amortization of ROU assets						$	176.1					$	172.7					$	146.3
Total operating lease costs						176.1						172.7						146.3
Financing lease costs:
Amortization of ROU assets						7.8						6.4						3.2
Interest on lease liabilities						15.4						9.3						4.5
Total financing lease costs						23.2						15.7						7.7
DLF obligation costs:
Depreciation of DLF assets						25.8						14.5						5.7
Interest on DLF obligations						70.0						46.7						28.0
Total DLF obligation costs						95.8						61.2						33.7
Variable lease costs						11.8						10.2						6.5
Total lease costs						$	306.9					$	259.8					$	194.2

Other information related to leases (in millions):

						December 31,
Supplemental Cash Flows Information						2023						2022						2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	156.4					$	157.0					$	123.6
Operating cash flows from finance leases						$	8.5					$	5.2					$	2.8
Operating cash flows from DLF obligations						$	54.6					$	36.9					$	17.7
Financing cash flows from finance leases						$	2.8					$	2.7					$	0.8
Financing cash flows from DLF obligations						$	6.9					$	4.8					$	—
Lease liabilities arising from new ROU assets:
Operating leases						$	83.5					$	51.9					$	19.6
Finance leases						$	27.0					$	92.0					$	52.7
DLF obligations(1)						$	311.3					$	193.8					$	171.4
(1) During the course of the construction of our venues, certain financing partners remit funds directly to our construction vendors on our behalf rather than providing the construction advances directly to us. These funds are presented as non-cash investing and financing activities within our consolidated statement of cash flows. For the year ended December 31, 2023, the amount contributed by these financing partners, in addition to accrued capitalized interest for these contributions was $60.6 million. For the years ended December 31, 2022 and December 31, 2021, the amount contributed by these financing partners, in addition to accrued capitalized interest for these contributions was $30.6 million and $37.7 million, respectively, which were corrected from $163.2 million and $107.1 million, respectively, as previously reported.

			December 31,
			2023						2022
Weighted average remaining lease term (years):
Operating leases			15.9						16.6
Finance leases			36.8						36.5
DLF obligations			38.1						38.5
Weighted average discount rate:
Operating leases			5.8		%				5.6		%
Finance leases			6.3		%				6.1		%
DLF obligations			10.0		%				8.8		%

As of December 31, 2023, our future minimum lease obligations were as follows (in millions):

			Operating Leases						Finance Leases						DLF Obligations(1)						Total
2024			$	155.6					$	14.9					$	72.9					$	243.4
2025			162.1						17.1						80.7						259.9
2026			156.9						17.4						84.2						258.5
2027			154.3						17.4						85.5						257.2
2028			150.0						15.3						87.7						253.0
Thereafter			1,677.5						739.7						3,978.8						6,396.0
Total future lease payments			2,456.4						821.8						4,389.8						7,668.0
Less: imputed interest			936.6						532.5						3,409.7						4,878.8
Total			$	1,519.8					$	289.3					$	980.1					$	2,789.2
(1) Future lease payments for DLF Obligations include approximately $44.9 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of December 31, 2023. Imputed interest includes approximately $175.6 million related to these unfunded DLF Obligations as of December 31, 2023.

Leases

Leases

Sales-Type Leases

We enter into non-cancelable license agreements primarily related to Toptracer and Swing Suite (see Note 10) of which certain of these agreements are classified as sales-type leases. Revenue from sales-type leases (see Note 2) is included in services revenues within our consolidated statements of operations is as follows (in millions):

			Year Ended December 31,
			2023						2022						2021
Sales-type lease selling price(1)			$	30.3					$	36.3					$	29.8
Cost of underlying assets			(13.8)						(17.6)						(11.9)
Operating profit			$	16.5					$	18.7					$	17.9
Interest income			$	6.1					$	4.5					$	4.3
Leasing revenue attributable to sales-type leases			$	36.4					$	40.8					$	34.1
(1) Selling price is equal to the present value of lease payments over the non-cancelable term of the licensing agreement.

Leasing receivables related to our net investment in sales-type leases are as follows (in millions):

									December 31,
			Balance Sheet Location						2023						2022
Leasing receivables, net—short-term			Other current assets						$	26.9					$	17.5
Leasing receivables, net—long-term			Other assets, net						65.1						57.5
Total leasing receivables									$	92.0					$	75.0

Net maturities of sales-type lease receivables for the next five years and thereafter as of December 31, 2023, are as follows (in millions):

			Sales-Type Leases
2024			$	33.5
2025			28.2
2026			21.0
2027			12.4
2028			5.7
Thereafter			2.8
Total future lease payments			103.6
Less: imputed interest			11.6
Total			$	92.0

Operating Leases, Financing Leases and DLF Obligations

Supplemental balance sheet information related to our operating and financing ROU assets and lease liabilities and DLF assets and obligations is as follows (in millions):

									December 31,
			Balance Sheet Location						2023						2022
Assets
Operating lease ROU assets, net			Operating lease ROU assets, net						$	1,410.1					$	1,419.1
Financing lease ROU assets, net			Other assets						$	257.4					$	215.7
DLF assets, net			Property, plant & equipment, net						$	917.3					$	813.2
Liabilities
Current
Operating lease liabilities, short-term			Operating lease liabilities, short-term						$	86.4					$	76.4
Financing lease liabilities, short-term			Accounts payable and accrued expenses						$	1.4					$	1.7
DLF obligations, short-term			Accounts payable and accrued expenses						$	0.1					$	2.4
Non-current
Operating lease liabilities, long-term			Operating lease liabilities, long-term						$	1,433.4					$	1,437.5
Financing lease liabilities, long-term			Other long-term liabilities						$	287.9					$	225.9
DLF obligations, long-term			Deemed landlord financing obligations						$	980.0					$	658.0

Leases Under Construction

Our minimum capital commitment for leases under construction, net of reimbursements from third-party real estate financing partners, was approximately $107.0 million as of December 31, 2023. As we are actively involved in the construction of these properties, we recorded $127.5 million in construction costs within property, plant and equipment and $59.3 million in construction advances from the landlords in connection with these properties as of December 31, 2023. We determine the lease classification for these properties at the end of the construction period. Upon lease commencement, the initial base term of these leases is generally 20 years, with most having options to extend for additional terms of up to 20 years. As of December 31, 2023, we had $364.9 million of future lease obligations related to four venues subject to non-cancellable leases that have been signed but have not yet commenced.

The components of lease expense included in our consolidated statements of operations for the periods presented below are as follows (in millions):

						Year Ended December 31,
						2023						2022						2021
Operating lease costs:
Amortization of ROU assets						$	176.1					$	172.7					$	146.3
Total operating lease costs						176.1						172.7						146.3
Financing lease costs:
Amortization of ROU assets						7.8						6.4						3.2
Interest on lease liabilities						15.4						9.3						4.5
Total financing lease costs						23.2						15.7						7.7
DLF obligation costs:
Depreciation of DLF assets						25.8						14.5						5.7
Interest on DLF obligations						70.0						46.7						28.0
Total DLF obligation costs						95.8						61.2						33.7
Variable lease costs						11.8						10.2						6.5
Total lease costs						$	306.9					$	259.8					$	194.2

Other information related to leases (in millions):

						December 31,
Supplemental Cash Flows Information						2023						2022						2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	156.4					$	157.0					$	123.6
Operating cash flows from finance leases						$	8.5					$	5.2					$	2.8
Operating cash flows from DLF obligations						$	54.6					$	36.9					$	17.7
Financing cash flows from finance leases						$	2.8					$	2.7					$	0.8
Financing cash flows from DLF obligations						$	6.9					$	4.8					$	—
Lease liabilities arising from new ROU assets:
Operating leases						$	83.5					$	51.9					$	19.6
Finance leases						$	27.0					$	92.0					$	52.7
DLF obligations(1)						$	311.3					$	193.8					$	171.4
(1) During the course of the construction of our venues, certain financing partners remit funds directly to our construction vendors on our behalf rather than providing the construction advances directly to us. These funds are presented as non-cash investing and financing activities within our consolidated statement of cash flows. For the year ended December 31, 2023, the amount contributed by these financing partners, in addition to accrued capitalized interest for these contributions was $60.6 million. For the years ended December 31, 2022 and December 31, 2021, the amount contributed by these financing partners, in addition to accrued capitalized interest for these contributions was $30.6 million and $37.7 million, respectively, which were corrected from $163.2 million and $107.1 million, respectively, as previously reported.

			December 31,
			2023						2022
Weighted average remaining lease term (years):
Operating leases			15.9						16.6
Finance leases			36.8						36.5
DLF obligations			38.1						38.5
Weighted average discount rate:
Operating leases			5.8		%				5.6		%
Finance leases			6.3		%				6.1		%
DLF obligations			10.0		%				8.8		%

As of December 31, 2023, our future minimum lease obligations were as follows (in millions):

			Operating Leases						Finance Leases						DLF Obligations(1)						Total
2024			$	155.6					$	14.9					$	72.9					$	243.4
2025			162.1						17.1						80.7						259.9
2026			156.9						17.4						84.2						258.5
2027			154.3						17.4						85.5						257.2
2028			150.0						15.3						87.7						253.0
Thereafter			1,677.5						739.7						3,978.8						6,396.0
Total future lease payments			2,456.4						821.8						4,389.8						7,668.0
Less: imputed interest			936.6						532.5						3,409.7						4,878.8
Total			$	1,519.8					$	289.3					$	980.1					$	2,789.2
(1) Future lease payments for DLF Obligations include approximately $44.9 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of December 31, 2023. Imputed interest includes approximately $175.6 million related to these unfunded DLF Obligations as of December 31, 2023.

X

- References

No definition available.

+ Details

Name:	us-gaap_LeasesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-20/tableOfContent

+ Details

Name:	us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-20/tableOfContent

+ Details

Name:	us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration