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Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Leases

Sales-Type Leases

We enter into non-cancellable license agreements primarily related to Toptracer and Swing Suite. Certain of these license agreements are classified as sales-type leases.

Revenue from sales-type leases is included in service revenues within the condensed consolidated statements of operations and consists of the following for the periods presented (in millions):

									Three Months Ended March 31,
															2024						2023
Sales-type lease selling price															$	7.5					$	8.2
Cost of underlying assets															(2.0)						(3.4)
Operating profit															$	5.5					$	4.8
Interest income															$	1.7					$	1.3
Total revenue attributable to sales-type leases															$	9.2					$	9.5

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

			Balance Sheet Location						March 31, 2024						December 31, 2023
Leasing receivables, net—short-term			Other current assets						$	27.7					$	26.9
Leasing receivables, net—long-term			Other assets						64.1						65.1
Total leasing receivables									$	91.8					$	92.0

Net maturities of sales-type lease receivables for the next five years and thereafter as of March 31, 2024 are as follows (in millions):

Remainder of 2024			$	26.4
2025			30.0
2026			23.4
2027			14.7
2028			7.9
Thereafter			3.6
Total future lease proceeds			106.0
Less: imputed interest			14.2
Total			$	91.8

Operating Leases, Financing Leases and DLF Obligations

Supplemental balance sheet information related to our operating and financing right-of-use (“ROU”) assets and lease liabilities and deemed landlord financing (“DLF”) assets and obligations is as follows (in millions):

			Balance Sheet Location						March 31, 2024						December 31, 2023
Assets
Operating lease ROU assets, net			Operating lease ROU assets, net						$	1,402.8					$	1,410.1
Financing lease ROU assets, net			Other assets						$	255.1					$	257.4
DLF assets, net			Property, plant & equipment, net						$	927.2					$	917.3
Liabilities
Current
Operating lease liabilities, short-term			Operating lease liabilities, short-term						$	86.7					$	86.4
Financing lease liabilities, short-term			Accounts payable and accrued expenses						$	1.6					$	1.4
DLF obligations, short-term			Accounts payable and accrued expenses						$	0.1					$	0.1
Non-current
Operating lease liabilities, long-term			Operating lease liabilities, long-term						$	1,430.7					$	1,433.4
Financing lease liabilities, long-term			Other long-term liabilities						$	288.9					$	287.9
DLF obligations, long-term			Deemed landlord financing obligations						$	1,013.7					$	980.0

Leases Under Construction

Our minimum capital commitment for leases under construction, net of reimbursements from third-party real estate financing partners, was approximately $126.0 million as of March 31, 2024. As we are actively involved in the construction of these properties, we recorded $165.0 million in construction costs within property, plant and equipment and $61.8 million in construction advances from the landlords in connection with these properties as of March 31, 2024. 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 normally 20 years, with most having options to extend for additional terms of up to 20 years. As of March 31, 2024, we had $396.7 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 condensed consolidated statement of operations for the periods presented below are as follows for the periods presented (in millions):

									Three Months Ended March 31,
															2024						2023
Operating lease costs:
Amortization of ROU assets															$	45.1					$	44.0
Total operating lease costs															45.1						44.0
Financing lease costs:
Amortization of ROU assets															1.9						1.9
Interest on lease liabilities															4.3						3.6
Total financing lease costs															6.2						5.5
DLF obligation costs:
Depreciation of DLF assets															9.0						5.1
Interest on DLF obligations															24.0						15.2
Total DLF obligation costs															33.0						20.3
Variable lease costs															3.5						2.5
Total lease costs															$	87.8					$	72.3

Other information related to leases (in millions):

						Three Months Ended March 31,
Supplemental Cash Flows Information						2024						2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	41.1					$	38.0
Operating cash flows from finance leases						$	2.2					$	1.2
Operating cash flows from DLF obligations						$	13.0					$	8.6
Financing cash flows from finance leases						$	1.5					$	1.0
Financing cash flows from DLF obligations						$	6.6					$	4.4
Lease liabilities arising from new ROU assets:
Operating leases						$	19.0					$	9.7
Financing leases						$	0.1					$	17.6
DLF obligations (1)						$	30.6					$	45.7
(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 condensed consolidated statement of cash flows. For the three months ended March 31, 2024, the amount contributed by these financing partners was $2.3 million. For the three months ended March 31, 2023, the amount contributed by these financing partners was $5.4 million, which was corrected from $35.8 million, as previously reported.

			March 31, 2024						December 31, 2023
Weighted average remaining lease term (years):
Operating leases			15.7						15.9
Financing leases			36.6						36.8
DLF obligations			37.9						38.1
Weighted average discount rate:
Operating leases			5.8		%				5.8		%
Financing leases			6.3		%				6.3		%
DLF obligations			9.7		%				10.0		%

As of March 31, 2024, our future minimum lease obligations were as follows (in millions):

			Operating Leases						Financing Leases						DLF Obligations(1)						Total
Remainder of 2024			$	115.3					$	11.0					$	52.9					$	179.2
2025			164.2						17.1						81.3						262.6
2026			160.0						17.3						84.9						262.2
2027			157.1						17.3						86.2						260.6
2028			153.3						17.6						88.4						259.3
Thereafter			1,689.5						739.5						4,014.0						6,443.0
Total future lease payments			2,439.4						819.8						4,407.7						7,666.9
Less: imputed interest			922.0						529.3						3,393.9						4,845.2
Total			$	1,517.4					$	290.5					$	1,013.8					$	2,821.7
(1) Future lease payments for DLF Obligations include approximately $37.3 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of March 31, 2024. Imputed interest includes approximately $138.7 million related to these unfunded DLF Obligations as of March 31, 2024.

Leases

Leases

Sales-Type Leases

We enter into non-cancellable license agreements primarily related to Toptracer and Swing Suite. Certain of these license agreements are classified as sales-type leases.

Revenue from sales-type leases is included in service revenues within the condensed consolidated statements of operations and consists of the following for the periods presented (in millions):

									Three Months Ended March 31,
															2024						2023
Sales-type lease selling price															$	7.5					$	8.2
Cost of underlying assets															(2.0)						(3.4)
Operating profit															$	5.5					$	4.8
Interest income															$	1.7					$	1.3
Total revenue attributable to sales-type leases															$	9.2					$	9.5

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

			Balance Sheet Location						March 31, 2024						December 31, 2023
Leasing receivables, net—short-term			Other current assets						$	27.7					$	26.9
Leasing receivables, net—long-term			Other assets						64.1						65.1
Total leasing receivables									$	91.8					$	92.0

Net maturities of sales-type lease receivables for the next five years and thereafter as of March 31, 2024 are as follows (in millions):

Remainder of 2024			$	26.4
2025			30.0
2026			23.4
2027			14.7
2028			7.9
Thereafter			3.6
Total future lease proceeds			106.0
Less: imputed interest			14.2
Total			$	91.8

Operating Leases, Financing Leases and DLF Obligations

Supplemental balance sheet information related to our operating and financing right-of-use (“ROU”) assets and lease liabilities and deemed landlord financing (“DLF”) assets and obligations is as follows (in millions):

			Balance Sheet Location						March 31, 2024						December 31, 2023
Assets
Operating lease ROU assets, net			Operating lease ROU assets, net						$	1,402.8					$	1,410.1
Financing lease ROU assets, net			Other assets						$	255.1					$	257.4
DLF assets, net			Property, plant & equipment, net						$	927.2					$	917.3
Liabilities
Current
Operating lease liabilities, short-term			Operating lease liabilities, short-term						$	86.7					$	86.4
Financing lease liabilities, short-term			Accounts payable and accrued expenses						$	1.6					$	1.4
DLF obligations, short-term			Accounts payable and accrued expenses						$	0.1					$	0.1
Non-current
Operating lease liabilities, long-term			Operating lease liabilities, long-term						$	1,430.7					$	1,433.4
Financing lease liabilities, long-term			Other long-term liabilities						$	288.9					$	287.9
DLF obligations, long-term			Deemed landlord financing obligations						$	1,013.7					$	980.0

Leases Under Construction

Our minimum capital commitment for leases under construction, net of reimbursements from third-party real estate financing partners, was approximately $126.0 million as of March 31, 2024. As we are actively involved in the construction of these properties, we recorded $165.0 million in construction costs within property, plant and equipment and $61.8 million in construction advances from the landlords in connection with these properties as of March 31, 2024. 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 normally 20 years, with most having options to extend for additional terms of up to 20 years. As of March 31, 2024, we had $396.7 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 condensed consolidated statement of operations for the periods presented below are as follows for the periods presented (in millions):

									Three Months Ended March 31,
															2024						2023
Operating lease costs:
Amortization of ROU assets															$	45.1					$	44.0
Total operating lease costs															45.1						44.0
Financing lease costs:
Amortization of ROU assets															1.9						1.9
Interest on lease liabilities															4.3						3.6
Total financing lease costs															6.2						5.5
DLF obligation costs:
Depreciation of DLF assets															9.0						5.1
Interest on DLF obligations															24.0						15.2
Total DLF obligation costs															33.0						20.3
Variable lease costs															3.5						2.5
Total lease costs															$	87.8					$	72.3

Other information related to leases (in millions):

						Three Months Ended March 31,
Supplemental Cash Flows Information						2024						2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	41.1					$	38.0
Operating cash flows from finance leases						$	2.2					$	1.2
Operating cash flows from DLF obligations						$	13.0					$	8.6
Financing cash flows from finance leases						$	1.5					$	1.0
Financing cash flows from DLF obligations						$	6.6					$	4.4
Lease liabilities arising from new ROU assets:
Operating leases						$	19.0					$	9.7
Financing leases						$	0.1					$	17.6
DLF obligations (1)						$	30.6					$	45.7
(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 condensed consolidated statement of cash flows. For the three months ended March 31, 2024, the amount contributed by these financing partners was $2.3 million. For the three months ended March 31, 2023, the amount contributed by these financing partners was $5.4 million, which was corrected from $35.8 million, as previously reported.

			March 31, 2024						December 31, 2023
Weighted average remaining lease term (years):
Operating leases			15.7						15.9
Financing leases			36.6						36.8
DLF obligations			37.9						38.1
Weighted average discount rate:
Operating leases			5.8		%				5.8		%
Financing leases			6.3		%				6.3		%
DLF obligations			9.7		%				10.0		%

As of March 31, 2024, our future minimum lease obligations were as follows (in millions):

			Operating Leases						Financing Leases						DLF Obligations(1)						Total
Remainder of 2024			$	115.3					$	11.0					$	52.9					$	179.2
2025			164.2						17.1						81.3						262.6
2026			160.0						17.3						84.9						262.2
2027			157.1						17.3						86.2						260.6
2028			153.3						17.6						88.4						259.3
Thereafter			1,689.5						739.5						4,014.0						6,443.0
Total future lease payments			2,439.4						819.8						4,407.7						7,666.9
Less: imputed interest			922.0						529.3						3,393.9						4,845.2
Total			$	1,517.4					$	290.5					$	1,013.8					$	2,821.7
(1) Future lease payments for DLF Obligations include approximately $37.3 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of March 31, 2024. Imputed interest includes approximately $138.7 million related to these unfunded DLF Obligations as of March 31, 2024.

Leases

Leases

Sales-Type Leases

We enter into non-cancellable license agreements primarily related to Toptracer and Swing Suite. Certain of these license agreements are classified as sales-type leases.

Revenue from sales-type leases is included in service revenues within the condensed consolidated statements of operations and consists of the following for the periods presented (in millions):

									Three Months Ended March 31,
															2024						2023
Sales-type lease selling price															$	7.5					$	8.2
Cost of underlying assets															(2.0)						(3.4)
Operating profit															$	5.5					$	4.8
Interest income															$	1.7					$	1.3
Total revenue attributable to sales-type leases															$	9.2					$	9.5

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

			Balance Sheet Location						March 31, 2024						December 31, 2023
Leasing receivables, net—short-term			Other current assets						$	27.7					$	26.9
Leasing receivables, net—long-term			Other assets						64.1						65.1
Total leasing receivables									$	91.8					$	92.0

Net maturities of sales-type lease receivables for the next five years and thereafter as of March 31, 2024 are as follows (in millions):

Remainder of 2024			$	26.4
2025			30.0
2026			23.4
2027			14.7
2028			7.9
Thereafter			3.6
Total future lease proceeds			106.0
Less: imputed interest			14.2
Total			$	91.8

Operating Leases, Financing Leases and DLF Obligations

Supplemental balance sheet information related to our operating and financing right-of-use (“ROU”) assets and lease liabilities and deemed landlord financing (“DLF”) assets and obligations is as follows (in millions):

			Balance Sheet Location						March 31, 2024						December 31, 2023
Assets
Operating lease ROU assets, net			Operating lease ROU assets, net						$	1,402.8					$	1,410.1
Financing lease ROU assets, net			Other assets						$	255.1					$	257.4
DLF assets, net			Property, plant & equipment, net						$	927.2					$	917.3
Liabilities
Current
Operating lease liabilities, short-term			Operating lease liabilities, short-term						$	86.7					$	86.4
Financing lease liabilities, short-term			Accounts payable and accrued expenses						$	1.6					$	1.4
DLF obligations, short-term			Accounts payable and accrued expenses						$	0.1					$	0.1
Non-current
Operating lease liabilities, long-term			Operating lease liabilities, long-term						$	1,430.7					$	1,433.4
Financing lease liabilities, long-term			Other long-term liabilities						$	288.9					$	287.9
DLF obligations, long-term			Deemed landlord financing obligations						$	1,013.7					$	980.0

Leases Under Construction

Our minimum capital commitment for leases under construction, net of reimbursements from third-party real estate financing partners, was approximately $126.0 million as of March 31, 2024. As we are actively involved in the construction of these properties, we recorded $165.0 million in construction costs within property, plant and equipment and $61.8 million in construction advances from the landlords in connection with these properties as of March 31, 2024. 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 normally 20 years, with most having options to extend for additional terms of up to 20 years. As of March 31, 2024, we had $396.7 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 condensed consolidated statement of operations for the periods presented below are as follows for the periods presented (in millions):

									Three Months Ended March 31,
															2024						2023
Operating lease costs:
Amortization of ROU assets															$	45.1					$	44.0
Total operating lease costs															45.1						44.0
Financing lease costs:
Amortization of ROU assets															1.9						1.9
Interest on lease liabilities															4.3						3.6
Total financing lease costs															6.2						5.5
DLF obligation costs:
Depreciation of DLF assets															9.0						5.1
Interest on DLF obligations															24.0						15.2
Total DLF obligation costs															33.0						20.3
Variable lease costs															3.5						2.5
Total lease costs															$	87.8					$	72.3

Other information related to leases (in millions):

						Three Months Ended March 31,
Supplemental Cash Flows Information						2024						2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	41.1					$	38.0
Operating cash flows from finance leases						$	2.2					$	1.2
Operating cash flows from DLF obligations						$	13.0					$	8.6
Financing cash flows from finance leases						$	1.5					$	1.0
Financing cash flows from DLF obligations						$	6.6					$	4.4
Lease liabilities arising from new ROU assets:
Operating leases						$	19.0					$	9.7
Financing leases						$	0.1					$	17.6
DLF obligations (1)						$	30.6					$	45.7
(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 condensed consolidated statement of cash flows. For the three months ended March 31, 2024, the amount contributed by these financing partners was $2.3 million. For the three months ended March 31, 2023, the amount contributed by these financing partners was $5.4 million, which was corrected from $35.8 million, as previously reported.

			March 31, 2024						December 31, 2023
Weighted average remaining lease term (years):
Operating leases			15.7						15.9
Financing leases			36.6						36.8
DLF obligations			37.9						38.1
Weighted average discount rate:
Operating leases			5.8		%				5.8		%
Financing leases			6.3		%				6.3		%
DLF obligations			9.7		%				10.0		%

As of March 31, 2024, our future minimum lease obligations were as follows (in millions):

			Operating Leases						Financing Leases						DLF Obligations(1)						Total
Remainder of 2024			$	115.3					$	11.0					$	52.9					$	179.2
2025			164.2						17.1						81.3						262.6
2026			160.0						17.3						84.9						262.2
2027			157.1						17.3						86.2						260.6
2028			153.3						17.6						88.4						259.3
Thereafter			1,689.5						739.5						4,014.0						6,443.0
Total future lease payments			2,439.4						819.8						4,407.7						7,666.9
Less: imputed interest			922.0						529.3						3,393.9						4,845.2
Total			$	1,517.4					$	290.5					$	1,013.8					$	2,821.7
(1) Future lease payments for DLF Obligations include approximately $37.3 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of March 31, 2024. Imputed interest includes approximately $138.7 million related to these unfunded DLF Obligations as of March 31, 2024.

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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.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
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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
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The entire disclosure of lessor's direct financing leases.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 30
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-30/tableOfContent

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