Leases (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Sales-type lease selling price(1)	$	8.2	$	11.4	$	16.4	$	18.5
Cost of underlying assets	(4.5)		(5.4)		(7.9)		(8.7)
Operating profit	$	3.7	$	6.0	$	8.5	$	9.8

Interest income	$	1.4	$	0.9	$	2.7	$	1.8

Total revenue attributable to sales-type leases	$	9.6	$	12.3	$	19.1	$	20.3

(1) Selling price is equal to the present value of lease payments over the non-cancellable term of the licensing agreement.

Supplemental Balance Sheet Information Related to Leases

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


	Balance Sheet Location	June 30, 2023		December 31, 2022
Leasing receivables, net—short-term	Other current assets	$	22.0	$	17.5
Leasing receivables, net—long-term	Other assets	61.5		57.5
Total Leasing receivables		$	83.5	$	75.0

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


	Balance Sheet Location	June 30, 2023		December 31, 2022
Assets
Operating lease ROU assets, net	Operating lease ROU assets, net	$	1,427.6	$	1,419.1
Financing lease ROU assets, net	Other assets	$	230.7	$	215.7
DLF assets, net	Property, Plant & Equipment	$	925.7	$	813.2

Liabilities
Current
Operating lease liabilities, short-term	Operating lease liabilities, short-term	$	80.4	$	76.4
Financing lease liabilities, short-term	Accounts payable and accrued expenses	$	1.5	$	1.7
DLF obligations, short-term	Accounts payable and accrued expenses	$	0.7	$	2.4

Non-current
Operating lease liabilities, long-term	Operating lease liabilities, long-term	$	1,451.5	$	1,437.5
Financing lease liabilities, long-term	Other long-term liabilities	$	247.2	$	225.9
DLF obligations, long-term	Deemed landlord financing obligations	$	765.8	$	658.0

Schedule of Maturities of Sales-Type Lease Receivables

As of June 30, 2023, net maturities of sales-type lease receivables for the next five years and thereafter were as follows (in millions):



Remainder of 2023	$	14.1
2024	27.2
2025	23.0
2026	16.1
2027	8.8
Thereafter	5.5
Total future lease proceeds	94.7
Less: imputed interest	11.2
Total	$	83.5

Components of Lease Expense and Other Information Related to Leases

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operating lease costs:
Amortization of ROU assets	$	41.3	$	48.4	$	85.3	$	85.8
Total operating lease costs	41.3		48.4		85.3		85.8
Financing lease costs:
Amortization of ROU assets	2.0		3.0		3.9		3.6
Interest on lease liabilities	3.7		2.1		7.3		4.2
Total financing lease costs	5.7		5.1		11.2		7.8
DLF obligation costs:
Depreciation of DLF assets	5.3		3.2		10.4		6.4
Interest on DLF obligations	16.2		10.7		31.4		20.8
Total DLF obligation costs	21.5		13.9		41.8		27.2
Variable lease costs	2.2		2.9		4.7		4.8
Total lease costs	$	70.7	$	70.3	$	143.0	$	125.6

Other information related to leases (in millions):


	Six Months Ended June 30,
Supplemental Cash Flows Information	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	77.1	$	72.7
Operating cash flows from finance leases	$	3.2	$	3.1
Operating cash flows from DLF obligations	$	21.8	$	15.7
Financing cash flows from finance leases	$	1.7	$	0.2
Financing cash flows from DLF obligations	$	5.1	$	—

Lease liabilities arising from new ROU assets:
Operating leases	$	42.2	$	26.3
Financing leases	$	17.4	$	30.6
DLF obligations (1)	$	101.6	$	38.8

(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. During the six months ended June 30, 2023, the amount contributed by these financing partners, in addition to accrued capitalized interest was $26.7 million. During the six months ended June 30, 2022, the amount contributed by these financing partners, in addition to accrued capitalized interest, was $12.8 million, which was corrected from $26.1 million, as previously reported.


	June 30, 2023		December 31, 2022
Weighted average remaining lease term (years):
Operating leases	16.5		16.6
Financing leases	36.5		36.5
DLF obligations	38.2		38.5

Weighted average discount rate:
Operating leases	5.7	%	5.6	%
Financing leases	6.1	%	6.1	%
DLF obligations	8.9	%	8.8	%

Future Minimum Operating Lease Obligations

As of June 30, 2023, our future minimum lease obligations were as follows (in millions):


	Operating Leases		Financing Leases		DLF Obligations		Total
Remainder of 2023	$	69.7	$	5.3	$	25.1	$	100.1
2024	158.7		14.4		60.5		233.6
2025	155.8		14.9		60.9		231.6
2026	151.3		15.0		61.9		228.2
2027	149.9		15.3		63.1		228.3
Thereafter	1,825.2		568.6		2,923.3		5,317.1
Total future lease payments	2,510.6		633.5		3,194.8		6,338.9
Less: imputed interest	978.7		384.8		2,428.3		3,791.8
Total	$	1,531.9	$	248.7	$	766.5	$	2,547.1

Future Minimum Financing Lease Obligations

As of June 30, 2023, our future minimum lease obligations were as follows (in millions):


	Operating Leases		Financing Leases		DLF Obligations		Total
Remainder of 2023	$	69.7	$	5.3	$	25.1	$	100.1
2024	158.7		14.4		60.5		233.6
2025	155.8		14.9		60.9		231.6
2026	151.3		15.0		61.9		228.2
2027	149.9		15.3		63.1		228.3
Thereafter	1,825.2		568.6		2,923.3		5,317.1
Total future lease payments	2,510.6		633.5		3,194.8		6,338.9
Less: imputed interest	978.7		384.8		2,428.3		3,791.8
Total	$	1,531.9	$	248.7	$	766.5	$	2,547.1