Leases (Tables)

3 Months Ended

Mar. 31, 2024

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

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	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

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

Schedule of Maturities of Sales-Type Lease Receivables

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

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 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	%

Future Minimum Operating Lease Obligations

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.

Future Minimum Financing Lease Obligations

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.