Leases

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Sales-type lease selling price	$	10.9	$	8.2	$	18.4	$	16.4
Cost of underlying assets	(4.1)		(4.5)		(6.1)		(7.9)
Operating profit	$	6.8	$	3.7	$	12.3	$	8.5
Interest income	$	1.8	$	1.4	$	3.5	$	2.7
Total revenue attributable to sales-type leases	$	12.7	$	9.6	$	21.9	$	19.1

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

	Balance Sheet Location	June 30, 2024		December 31, 2023
Leasing receivables, net—short-term	Other current assets	$	34.2	$	26.9
Leasing receivables, net—long-term	Other assets	66.5		65.1
Total leasing receivables		$	100.7	$	92.0

Net maturities of sales-type lease receivables for the next five years and thereafter as of June 30, 2024 are as follows (in millions):

Remainder of 2024	$	23.8
2025	32.0
2026	25.8
2027	17.2
2028	10.4
Thereafter	5.3
Total future lease proceeds	114.5
Less: imputed interest	13.8
Total	$	100.7

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	June 30, 2024		December 31, 2023
Assets
Operating lease ROU assets, net	Operating lease ROU assets, net	$	1,380.1	$	1,410.1
Financing lease ROU assets, net	Other assets, net	$	248.4	$	257.4
Liabilities
Current
Operating lease liabilities, short-term	Operating lease liabilities, short-term	$	87.3	$	86.4
Financing lease liabilities, short-term	Accounts payable and accrued expenses	$	1.5	$	1.4
DLF obligations, short-term	Accounts payable and accrued expenses	$	0.9	$	0.1
Non-current
Operating lease liabilities, long-term	Operating lease liabilities, long-term	$	1,414.4	$	1,433.4
Financing lease liabilities, long-term	Other long-term liabilities	$	284.2	$	287.9
DLF obligations, long-term	Deemed landlord financing obligations	$	1,095.7	$	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 $70.0 million as of June 30, 2024. As we are actively involved in the construction of these properties, we recorded $72.0 million in construction costs within property, plant and equipment and $15.6 million in construction advances from the landlords in connection with these properties as of June 30, 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 June 30, 2024, we had $310.8 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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Operating lease costs	$	45.4	$	41.3	$	90.5	$	85.3
Total operating lease costs	45.4		41.3		90.5		85.3
Financing lease costs:
Amortization of ROU assets	1.8		2.0		3.7		3.9
Interest on lease liabilities	3.9		3.7		8.2		7.3
Total financing lease costs	5.7		5.7		11.9		11.2
DLF obligation costs:
Depreciation of DLF assets	9.2		5.3		18.2		10.4
Interest on DLF obligations	25.0		16.2		49.0		31.4
Total DLF obligation costs	34.2		21.5		67.2		41.8
Variable lease costs	2.9		2.2		6.4		4.7
Total lease costs	$	88.2	$	70.7	$	176.0	$	143.0

Other information related to leases (in millions):

	Six Months Ended June 30,
Supplemental Cash Flows Information	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	83.1	$	77.1
Operating cash flows for finance leases	$	5.4	$	3.2
Operating cash flows for DLF obligations	$	33.3	$	21.8
Financing cash flows for finance leases	$	1.9	$	1.7
Financing cash flows for DLF obligations	$	6.9	$	5.1
Lease liabilities arising from new ROU assets:
Operating leases	$	28.6	$	42.2
Financing leases	$	0.1	$	17.4
DLF obligations	$	108.9	$	101.6

	June 30, 2024		December 31, 2023
Weighted average remaining lease term (years):
Operating leases	15.6		15.9
Financing leases	36.4		36.8
DLF obligations	37.0		38.1
Weighted average discount rate:
Operating leases	5.4	%	5.8	%
Financing leases	6.3	%	6.3	%
DLF obligations	9.4	%	10.0	%

As of June 30, 2024, our future minimum lease obligations were as follows (in millions):

	Operating Leases		Financing Leases		DLF Obligations(1)		Total
Remainder of 2024	$	74.2	$	6.7	$	36.3	$	117.2
2025	165.2		16.2		88.1		269.5
2026	160.4		16.5		91.6		268.5
2027	157.6		16.6		92.9		267.1
2028	153.9		17.0		95.1		266.0
Thereafter	1,694.1		737.0		4,176.1		6,607.2
Total future lease payments	2,405.4		810.0		4,580.1		7,795.5
Less: imputed interest	903.7		524.3		3,483.5		4,911.5
Total	$	1,501.7	$	285.7	$	1,096.6	$	2,884.0
(1) Future lease payments for DLF Obligations include approximately $25.7 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of June 30, 2024. Imputed interest includes approximately $100.5 million related to these unfunded DLF Obligations as of June 30, 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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Sales-type lease selling price	$	10.9	$	8.2	$	18.4	$	16.4
Cost of underlying assets	(4.1)		(4.5)		(6.1)		(7.9)
Operating profit	$	6.8	$	3.7	$	12.3	$	8.5
Interest income	$	1.8	$	1.4	$	3.5	$	2.7
Total revenue attributable to sales-type leases	$	12.7	$	9.6	$	21.9	$	19.1

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

	Balance Sheet Location	June 30, 2024		December 31, 2023
Leasing receivables, net—short-term	Other current assets	$	34.2	$	26.9
Leasing receivables, net—long-term	Other assets	66.5		65.1
Total leasing receivables		$	100.7	$	92.0

Net maturities of sales-type lease receivables for the next five years and thereafter as of June 30, 2024 are as follows (in millions):

Remainder of 2024	$	23.8
2025	32.0
2026	25.8
2027	17.2
2028	10.4
Thereafter	5.3
Total future lease proceeds	114.5
Less: imputed interest	13.8
Total	$	100.7

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	June 30, 2024		December 31, 2023
Assets
Operating lease ROU assets, net	Operating lease ROU assets, net	$	1,380.1	$	1,410.1
Financing lease ROU assets, net	Other assets, net	$	248.4	$	257.4
Liabilities
Current
Operating lease liabilities, short-term	Operating lease liabilities, short-term	$	87.3	$	86.4
Financing lease liabilities, short-term	Accounts payable and accrued expenses	$	1.5	$	1.4
DLF obligations, short-term	Accounts payable and accrued expenses	$	0.9	$	0.1
Non-current
Operating lease liabilities, long-term	Operating lease liabilities, long-term	$	1,414.4	$	1,433.4
Financing lease liabilities, long-term	Other long-term liabilities	$	284.2	$	287.9
DLF obligations, long-term	Deemed landlord financing obligations	$	1,095.7	$	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 $70.0 million as of June 30, 2024. As we are actively involved in the construction of these properties, we recorded $72.0 million in construction costs within property, plant and equipment and $15.6 million in construction advances from the landlords in connection with these properties as of June 30, 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 June 30, 2024, we had $310.8 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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Operating lease costs	$	45.4	$	41.3	$	90.5	$	85.3
Total operating lease costs	45.4		41.3		90.5		85.3
Financing lease costs:
Amortization of ROU assets	1.8		2.0		3.7		3.9
Interest on lease liabilities	3.9		3.7		8.2		7.3
Total financing lease costs	5.7		5.7		11.9		11.2
DLF obligation costs:
Depreciation of DLF assets	9.2		5.3		18.2		10.4
Interest on DLF obligations	25.0		16.2		49.0		31.4
Total DLF obligation costs	34.2		21.5		67.2		41.8
Variable lease costs	2.9		2.2		6.4		4.7
Total lease costs	$	88.2	$	70.7	$	176.0	$	143.0

Other information related to leases (in millions):

	Six Months Ended June 30,
Supplemental Cash Flows Information	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	83.1	$	77.1
Operating cash flows for finance leases	$	5.4	$	3.2
Operating cash flows for DLF obligations	$	33.3	$	21.8
Financing cash flows for finance leases	$	1.9	$	1.7
Financing cash flows for DLF obligations	$	6.9	$	5.1
Lease liabilities arising from new ROU assets:
Operating leases	$	28.6	$	42.2
Financing leases	$	0.1	$	17.4
DLF obligations	$	108.9	$	101.6

	June 30, 2024		December 31, 2023
Weighted average remaining lease term (years):
Operating leases	15.6		15.9
Financing leases	36.4		36.8
DLF obligations	37.0		38.1
Weighted average discount rate:
Operating leases	5.4	%	5.8	%
Financing leases	6.3	%	6.3	%
DLF obligations	9.4	%	10.0	%

As of June 30, 2024, our future minimum lease obligations were as follows (in millions):

	Operating Leases		Financing Leases		DLF Obligations(1)		Total
Remainder of 2024	$	74.2	$	6.7	$	36.3	$	117.2
2025	165.2		16.2		88.1		269.5
2026	160.4		16.5		91.6		268.5
2027	157.6		16.6		92.9		267.1
2028	153.9		17.0		95.1		266.0
Thereafter	1,694.1		737.0		4,176.1		6,607.2
Total future lease payments	2,405.4		810.0		4,580.1		7,795.5
Less: imputed interest	903.7		524.3		3,483.5		4,911.5
Total	$	1,501.7	$	285.7	$	1,096.6	$	2,884.0
(1) Future lease payments for DLF Obligations include approximately $25.7 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of June 30, 2024. Imputed interest includes approximately $100.5 million related to these unfunded DLF Obligations as of June 30, 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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Sales-type lease selling price	$	10.9	$	8.2	$	18.4	$	16.4
Cost of underlying assets	(4.1)		(4.5)		(6.1)		(7.9)
Operating profit	$	6.8	$	3.7	$	12.3	$	8.5
Interest income	$	1.8	$	1.4	$	3.5	$	2.7
Total revenue attributable to sales-type leases	$	12.7	$	9.6	$	21.9	$	19.1

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

	Balance Sheet Location	June 30, 2024		December 31, 2023
Leasing receivables, net—short-term	Other current assets	$	34.2	$	26.9
Leasing receivables, net—long-term	Other assets	66.5		65.1
Total leasing receivables		$	100.7	$	92.0

Net maturities of sales-type lease receivables for the next five years and thereafter as of June 30, 2024 are as follows (in millions):

Remainder of 2024	$	23.8
2025	32.0
2026	25.8
2027	17.2
2028	10.4
Thereafter	5.3
Total future lease proceeds	114.5
Less: imputed interest	13.8
Total	$	100.7

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	June 30, 2024		December 31, 2023
Assets
Operating lease ROU assets, net	Operating lease ROU assets, net	$	1,380.1	$	1,410.1
Financing lease ROU assets, net	Other assets, net	$	248.4	$	257.4
Liabilities
Current
Operating lease liabilities, short-term	Operating lease liabilities, short-term	$	87.3	$	86.4
Financing lease liabilities, short-term	Accounts payable and accrued expenses	$	1.5	$	1.4
DLF obligations, short-term	Accounts payable and accrued expenses	$	0.9	$	0.1
Non-current
Operating lease liabilities, long-term	Operating lease liabilities, long-term	$	1,414.4	$	1,433.4
Financing lease liabilities, long-term	Other long-term liabilities	$	284.2	$	287.9
DLF obligations, long-term	Deemed landlord financing obligations	$	1,095.7	$	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 $70.0 million as of June 30, 2024. As we are actively involved in the construction of these properties, we recorded $72.0 million in construction costs within property, plant and equipment and $15.6 million in construction advances from the landlords in connection with these properties as of June 30, 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 June 30, 2024, we had $310.8 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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Operating lease costs	$	45.4	$	41.3	$	90.5	$	85.3
Total operating lease costs	45.4		41.3		90.5		85.3
Financing lease costs:
Amortization of ROU assets	1.8		2.0		3.7		3.9
Interest on lease liabilities	3.9		3.7		8.2		7.3
Total financing lease costs	5.7		5.7		11.9		11.2
DLF obligation costs:
Depreciation of DLF assets	9.2		5.3		18.2		10.4
Interest on DLF obligations	25.0		16.2		49.0		31.4
Total DLF obligation costs	34.2		21.5		67.2		41.8
Variable lease costs	2.9		2.2		6.4		4.7
Total lease costs	$	88.2	$	70.7	$	176.0	$	143.0

Other information related to leases (in millions):

	Six Months Ended June 30,
Supplemental Cash Flows Information	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	83.1	$	77.1
Operating cash flows for finance leases	$	5.4	$	3.2
Operating cash flows for DLF obligations	$	33.3	$	21.8
Financing cash flows for finance leases	$	1.9	$	1.7
Financing cash flows for DLF obligations	$	6.9	$	5.1
Lease liabilities arising from new ROU assets:
Operating leases	$	28.6	$	42.2
Financing leases	$	0.1	$	17.4
DLF obligations	$	108.9	$	101.6

	June 30, 2024		December 31, 2023
Weighted average remaining lease term (years):
Operating leases	15.6		15.9
Financing leases	36.4		36.8
DLF obligations	37.0		38.1
Weighted average discount rate:
Operating leases	5.4	%	5.8	%
Financing leases	6.3	%	6.3	%
DLF obligations	9.4	%	10.0	%

As of June 30, 2024, our future minimum lease obligations were as follows (in millions):

	Operating Leases		Financing Leases		DLF Obligations(1)		Total
Remainder of 2024	$	74.2	$	6.7	$	36.3	$	117.2
2025	165.2		16.2		88.1		269.5
2026	160.4		16.5		91.6		268.5
2027	157.6		16.6		92.9		267.1
2028	153.9		17.0		95.1		266.0
Thereafter	1,694.1		737.0		4,176.1		6,607.2
Total future lease payments	2,405.4		810.0		4,580.1		7,795.5
Less: imputed interest	903.7		524.3		3,483.5		4,911.5
Total	$	1,501.7	$	285.7	$	1,096.6	$	2,884.0
(1) Future lease payments for DLF Obligations include approximately $25.7 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of June 30, 2024. Imputed interest includes approximately $100.5 million related to these unfunded DLF Obligations as of June 30, 2024.