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v3.25.3

Leases | 9 Months Ended
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Sep. 30, 2025
Leases [Abstract] |
Leases | Leases Sales-Type Leases We enter into non-cancellable license agreements primarily related to Toptracer and Swing Suite of which certain of these 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 September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Sales-type lease selling price(1) | $ | 10.0 |  |  | $ | 12.8 |  |  | $ | 31.1 |  |  | $ | 31.2 |
Cost of underlying assets | (3.3) |  |  | (5.7) |  |  | (10.5) |  |  | (11.8) |
Operating profit | $ | 6.7 |  |  | $ | 7.1 |  |  | $ | 20.6 |  |  | $ | 19.4 |
Interest income | $ | 2.1 |  |  | $ | 1.7 |  |  | $ | 6.2 |  |  | $ | 5.2 |
Total revenue attributable to sales-type leases | $ | 12.1 |  |  | $ | 14.5 |  |  | $ | 37.3 |  |  | $ | 36.4 |
(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 Location |  | September 30, 2025 |  | December 31, 2024
Leasing receivables, net—short-term | Other current assets |  | $ | 37.5 |  |  | $ | 33.9 |
Leasing receivables, net—long-term | Other assets |  | 76.9 |  |  | 71.2 |
Total leasing receivables |  |  | $ | 114.4 |  |  | $ | 105.1 |
Net maturities of sales-type lease receivables for the next five years and thereafter as of September 30, 2025 are as follows (in millions):
Remainder of 2025 | $ | 15.0 |
2026 | 37.7 |
2027 | 31.0 |
2028 | 23.8 |
2029 | 15.9 |
Thereafter | 6.9 |
Total future lease proceeds | 130.3 |
Less: imputed interest | 15.9 |
Total | $ | 114.4 |
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 |  | September 30, 2025 |  | December 31, 2024
Assets |  |  |  |  |
Operating lease ROU assets, net | Operating lease ROU assets, net |  | $ | 1,242.5 |  |  | $ | 1,339.2 |
Financing lease ROU assets, net | Other assets, net |  | $ | 257.2 |  |  | $ | 261.4 |
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating lease liabilities, short-term | Operating lease liabilities, short-term |  | $ | 80.8 |  |  | $ | 89.3 |
Financing lease liabilities, short-term | Accounts payable and accrued expenses |  | $ | 1.1 |  |  | $ | 1.4 |
DLF obligations, short-term | Accounts payable and accrued expenses |  | $ | 1.1 |  |  | $ | 1.0 |
Non-current |  |  |  |  |
Operating lease liabilities, long-term | Operating lease liabilities, long-term |  | $ | 1,299.0 |  |  | $ | 1,377.1 |
Financing lease liabilities, long-term | Financing lease liabilities, long-term |  | $ | 306.2 |  |  | $ | 301.9 |
DLF obligations, long-term | Deemed landlord financing obligations |  | $ | 1,254.2 |  |  | $ | 1,194.8 |
Lease Termination Incentive During the first quarter of 2025, we signed an agreement with the landlord of our Japanese subsidiary’s headquarters to terminate a lease prior to its original end date in exchange for a cash incentive of 1,800.0 million Yen (approximately $12.0 million). As a result, we recognized a $12.0 million gain on lease termination, which was recorded in other receivables within other current assets on our condensed consolidated balance sheet, and recognized within selling, general and administrative expenses on our condensed consolidated statement of operations. Leases Under Construction As we are actively involved in the construction of Topgolf venues, we recorded $97.3 million in construction costs within property, plant and equipment and $40.2 million in construction advances from the landlords in connection with these properties as of September 30, 2025. 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 September 30, 2025, we had $598.0 million of future lease obligations related to five venues subject to non-cancellable leases that have been signed but have not yet commenced. As of September 30, 2025, expected reimbursements from third-party real estate financing partners exceeded our expected committed capital expenditures. 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 September 30, |  | Nine Months Ended September 30,
2025 |  | 2024 |  | 2025 |  | 2024
Operating lease costs: | $ | 40.8 |  |  | $ | 46.8 |  |  | $ | 126.8 |  |  | $ | 137.3 |
Financing lease costs: |  |  |  |  |  |  |
Amortization of ROU assets | 2.0 |  |  | 2.0 |  |  | 5.9 |  |  | 5.7 |
Interest on lease liabilities | 4.9 |  |  | 4.6 |  |  | 14.4 |  |  | 12.8 |
Total financing lease costs | 6.9 |  |  | 6.6 |  |  | 20.3 |  |  | 18.5 |
DLF obligation costs: |  |  |  |  |  |  |
Depreciation of DLF assets | 11.6 |  |  | 10.1 |  |  | 34.3 |  |  | 28.3 |
Interest on DLF obligations | 28.6 |  |  | 25.7 |  |  | 84.2 |  |  | 74.7 |
Total DLF obligation costs | 40.2 |  |  | 35.8 |  |  | 118.5 |  |  | 103.0 |
Variable lease costs | 1.2 |  |  | 2.2 |  |  | 5.6 |  |  | 8.6 |
Total lease costs | $ | 89.1 |  |  | $ | 91.4 |  |  | $ | 271.2 |  |  | $ | 267.4 |
Other information related to leases (in millions):
|  | Nine Months Ended September 30, |  |  |
Supplemental Cash Flows Information |  | 2025 |  | 2024 |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 120.8 |  |  | $ | 125.8 |  |  |  |
Operating cash flows from finance leases |  | $ | 10.4 |  |  | $ | 8.9 |  |  |  |
Operating cash flows from DLF obligations |  | $ | 61.5 |  |  | $ | 54.9 |  |  |  |
Financing cash flows from finance leases |  | $ | 2.5 |  |  | $ | 3.0 |  |  |  |
Financing cash flows from DLF obligations |  | $ | 10.0 |  |  | $ | 8.0 |  |  |  |
Lease liabilities arising from new ROU assets: |  |  |  |  |  |  |
Operating leases |  | $ | 39.9 |  |  | $ | 33.9 |  |  |  |
Financing leases |  | $ | 6.9 |  |  | $ | 3.7 |  |  |  |
DLF obligations |  | $ | 50.2 |  |  | $ | 158.2 |  |  |  |
| September 30, 2025 |  | December 31, 2024
Weighted-average remaining lease term (years): |  |  |
Operating leases | 15.1 |  | 15.2
Financing leases | 35.6 |  | 36.2
DLF obligations | 36.2 |  | 36.8
Weighted-average discount rate: |  |  |
Operating leases | 5.9 | % |  | 5.8 | %
Financing leases | 6.9 | % |  | 6.5 | %
DLF obligations | 9.5 | % |  | 9.4 | %
As of September 30, 2025, our future minimum lease obligations were as follows (in millions):
| Operating Leases |  | Financing Leases |  | DLF Obligations(1) |  | Total
Remainder of 2025 | $ | 29.4 |  |  | $ | 2.9 |  |  | $ | 16.2 |  |  | $ | 48.5 |
2026 | 154.5 |  |  | 18.5 |  |  | 103.1 |  |  | 276.1 |
2027 | 155.4 |  |  | 19.2 |  |  | 104.4 |  |  | 279.0 |
2028 | 155.2 |  |  | 19.6 |  |  | 106.6 |  |  | 281.4 |
2029 | 155.1 |  |  | 20.1 |  |  | 109.0 |  |  | 284.2 |
Thereafter | 1,556.2 |  |  | 843.0 |  |  | 4,676.9 |  |  | 7,076.1 |
Total future lease payments | 2,205.8 |  |  | 923.3 |  |  | 5,116.2 |  |  | 8,245.3 |
Less: imputed interest | 826.0 |  |  | 616.0 |  |  | 3,860.9 |  |  | 5,302.9 |
Total | $ | 1,379.8 |  |  | $ | 307.3 |  |  | $ | 1,255.3 |  |  | $ | 2,942.4 |
(1) Future lease payments for DLF Obligations include approximately $21.2 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of September 30, 2025. Imputed interest includes approximately $72.2 million related to these unfunded DLF Obligations as of September 30, 2025.
Leases | Leases Sales-Type Leases We enter into non-cancellable license agreements primarily related to Toptracer and Swing Suite of which certain of these 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 September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Sales-type lease selling price(1) | $ | 10.0 |  |  | $ | 12.8 |  |  | $ | 31.1 |  |  | $ | 31.2 |
Cost of underlying assets | (3.3) |  |  | (5.7) |  |  | (10.5) |  |  | (11.8) |
Operating profit | $ | 6.7 |  |  | $ | 7.1 |  |  | $ | 20.6 |  |  | $ | 19.4 |
Interest income | $ | 2.1 |  |  | $ | 1.7 |  |  | $ | 6.2 |  |  | $ | 5.2 |
Total revenue attributable to sales-type leases | $ | 12.1 |  |  | $ | 14.5 |  |  | $ | 37.3 |  |  | $ | 36.4 |
(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 Location |  | September 30, 2025 |  | December 31, 2024
Leasing receivables, net—short-term | Other current assets |  | $ | 37.5 |  |  | $ | 33.9 |
Leasing receivables, net—long-term | Other assets |  | 76.9 |  |  | 71.2 |
Total leasing receivables |  |  | $ | 114.4 |  |  | $ | 105.1 |
Net maturities of sales-type lease receivables for the next five years and thereafter as of September 30, 2025 are as follows (in millions):
Remainder of 2025 | $ | 15.0 |
2026 | 37.7 |
2027 | 31.0 |
2028 | 23.8 |
2029 | 15.9 |
Thereafter | 6.9 |
Total future lease proceeds | 130.3 |
Less: imputed interest | 15.9 |
Total | $ | 114.4 |
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 |  | September 30, 2025 |  | December 31, 2024
Assets |  |  |  |  |
Operating lease ROU assets, net | Operating lease ROU assets, net |  | $ | 1,242.5 |  |  | $ | 1,339.2 |
Financing lease ROU assets, net | Other assets, net |  | $ | 257.2 |  |  | $ | 261.4 |
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating lease liabilities, short-term | Operating lease liabilities, short-term |  | $ | 80.8 |  |  | $ | 89.3 |
Financing lease liabilities, short-term | Accounts payable and accrued expenses |  | $ | 1.1 |  |  | $ | 1.4 |
DLF obligations, short-term | Accounts payable and accrued expenses |  | $ | 1.1 |  |  | $ | 1.0 |
Non-current |  |  |  |  |
Operating lease liabilities, long-term | Operating lease liabilities, long-term |  | $ | 1,299.0 |  |  | $ | 1,377.1 |
Financing lease liabilities, long-term | Financing lease liabilities, long-term |  | $ | 306.2 |  |  | $ | 301.9 |
DLF obligations, long-term | Deemed landlord financing obligations |  | $ | 1,254.2 |  |  | $ | 1,194.8 |
Lease Termination Incentive During the first quarter of 2025, we signed an agreement with the landlord of our Japanese subsidiary’s headquarters to terminate a lease prior to its original end date in exchange for a cash incentive of 1,800.0 million Yen (approximately $12.0 million). As a result, we recognized a $12.0 million gain on lease termination, which was recorded in other receivables within other current assets on our condensed consolidated balance sheet, and recognized within selling, general and administrative expenses on our condensed consolidated statement of operations. Leases Under Construction As we are actively involved in the construction of Topgolf venues, we recorded $97.3 million in construction costs within property, plant and equipment and $40.2 million in construction advances from the landlords in connection with these properties as of September 30, 2025. 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 September 30, 2025, we had $598.0 million of future lease obligations related to five venues subject to non-cancellable leases that have been signed but have not yet commenced. As of September 30, 2025, expected reimbursements from third-party real estate financing partners exceeded our expected committed capital expenditures. 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 September 30, |  | Nine Months Ended September 30,
2025 |  | 2024 |  | 2025 |  | 2024
Operating lease costs: | $ | 40.8 |  |  | $ | 46.8 |  |  | $ | 126.8 |  |  | $ | 137.3 |
Financing lease costs: |  |  |  |  |  |  |
Amortization of ROU assets | 2.0 |  |  | 2.0 |  |  | 5.9 |  |  | 5.7 |
Interest on lease liabilities | 4.9 |  |  | 4.6 |  |  | 14.4 |  |  | 12.8 |
Total financing lease costs | 6.9 |  |  | 6.6 |  |  | 20.3 |  |  | 18.5 |
DLF obligation costs: |  |  |  |  |  |  |
Depreciation of DLF assets | 11.6 |  |  | 10.1 |  |  | 34.3 |  |  | 28.3 |
Interest on DLF obligations | 28.6 |  |  | 25.7 |  |  | 84.2 |  |  | 74.7 |
Total DLF obligation costs | 40.2 |  |  | 35.8 |  |  | 118.5 |  |  | 103.0 |
Variable lease costs | 1.2 |  |  | 2.2 |  |  | 5.6 |  |  | 8.6 |
Total lease costs | $ | 89.1 |  |  | $ | 91.4 |  |  | $ | 271.2 |  |  | $ | 267.4 |
Other information related to leases (in millions):
|  | Nine Months Ended September 30, |  |  |
Supplemental Cash Flows Information |  | 2025 |  | 2024 |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 120.8 |  |  | $ | 125.8 |  |  |  |
Operating cash flows from finance leases |  | $ | 10.4 |  |  | $ | 8.9 |  |  |  |
Operating cash flows from DLF obligations |  | $ | 61.5 |  |  | $ | 54.9 |  |  |  |
Financing cash flows from finance leases |  | $ | 2.5 |  |  | $ | 3.0 |  |  |  |
Financing cash flows from DLF obligations |  | $ | 10.0 |  |  | $ | 8.0 |  |  |  |
Lease liabilities arising from new ROU assets: |  |  |  |  |  |  |
Operating leases |  | $ | 39.9 |  |  | $ | 33.9 |  |  |  |
Financing leases |  | $ | 6.9 |  |  | $ | 3.7 |  |  |  |
DLF obligations |  | $ | 50.2 |  |  | $ | 158.2 |  |  |  |
| September 30, 2025 |  | December 31, 2024
Weighted-average remaining lease term (years): |  |  |
Operating leases | 15.1 |  | 15.2
Financing leases | 35.6 |  | 36.2
DLF obligations | 36.2 |  | 36.8
Weighted-average discount rate: |  |  |
Operating leases | 5.9 | % |  | 5.8 | %
Financing leases | 6.9 | % |  | 6.5 | %
DLF obligations | 9.5 | % |  | 9.4 | %
As of September 30, 2025, our future minimum lease obligations were as follows (in millions):
| Operating Leases |  | Financing Leases |  | DLF Obligations(1) |  | Total
Remainder of 2025 | $ | 29.4 |  |  | $ | 2.9 |  |  | $ | 16.2 |  |  | $ | 48.5 |
2026 | 154.5 |  |  | 18.5 |  |  | 103.1 |  |  | 276.1 |
2027 | 155.4 |  |  | 19.2 |  |  | 104.4 |  |  | 279.0 |
2028 | 155.2 |  |  | 19.6 |  |  | 106.6 |  |  | 281.4 |
2029 | 155.1 |  |  | 20.1 |  |  | 109.0 |  |  | 284.2 |
Thereafter | 1,556.2 |  |  | 843.0 |  |  | 4,676.9 |  |  | 7,076.1 |
Total future lease payments | 2,205.8 |  |  | 923.3 |  |  | 5,116.2 |  |  | 8,245.3 |
Less: imputed interest | 826.0 |  |  | 616.0 |  |  | 3,860.9 |  |  | 5,302.9 |
Total | $ | 1,379.8 |  |  | $ | 307.3 |  |  | $ | 1,255.3 |  |  | $ | 2,942.4 |
(1) Future lease payments for DLF Obligations include approximately $21.2 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of September 30, 2025. Imputed interest includes approximately $72.2 million related to these unfunded DLF Obligations as of September 30, 2025.

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