Leases

6 Months Ended

Jun. 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 June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Sales-type lease selling price(1)	$	11.8	$	10.9	$	21.1	$	18.4
Cost of underlying assets	(4.3)		(4.1)		(7.2)		(6.1)
Operating profit	$	7.5	$	6.8	$	13.9	$	12.3
Interest income	$	2.2	$	1.8	$	4.1	$	3.5
Total revenue attributable to sales-type leases	$	14.0	$	12.7	$	25.2	$	21.9
(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	June 30, 2025		December 31, 2024
Leasing receivables, net—short-term	Other current assets	$	38.6	$	33.9
Leasing receivables, net—long-term	Other assets	77.6		71.2
Total leasing receivables		$	116.2	$	105.1

Net maturities of sales-type lease receivables for the next five years and thereafter as of June 30, 2025 are as follows (in millions):

Remainder of 2025	$	26.8
2026	35.9
2027	29.0
2028	21.6
2029	13.8
Thereafter	5.3
Total future lease proceeds	132.4
Less: imputed interest	16.2
Total	$	116.2

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, 2025		December 31, 2024
Assets
Operating lease ROU assets, net	Operating lease ROU assets, net	$	1,266.8	$	1,339.2
Financing lease ROU assets, net	Other assets, net	$	249.1	$	261.4
Liabilities
Current
Operating lease liabilities, short-term	Operating lease liabilities, short-term	$	79.7	$	89.3
Financing lease liabilities, short-term	Accounts payable and accrued expenses	$	1.5	$	1.4
DLF obligations, short-term	Accounts payable and accrued expenses	$	1.0	$	1.0
Non-current
Operating lease liabilities, long-term	Operating lease liabilities, long-term	$	1,322.0	$	1,377.1
Financing lease liabilities, long-term	Other long-term liabilities	$	295.2	$	301.9
DLF obligations, long-term	Deemed landlord financing obligations	$	1,238.7	$	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

Our minimum capital commitment for leases under construction, net of reimbursements from third-party real estate financing partners, was approximately $46.0 million as of June 30, 2025. As we are actively involved in the construction of these properties, we recorded $81.8 million in construction costs within property, plant and equipment and $22.9 million in construction advances from the landlords in connection with these properties as of June 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 June 30, 2025, we had $603.5 million of future lease obligations related to five 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,
	2025		2024		2025		2024
Operating lease costs:	$	40.9	$	45.4	$	86.0	$	90.5
Financing lease costs:
Amortization of ROU assets	1.9		1.8		3.9		3.7
Interest on lease liabilities	4.8		3.9		9.5		8.2
Total financing lease costs	6.7		5.7		13.4		11.9
DLF obligation costs:
Depreciation of DLF assets	11.4		9.2		22.7		18.2
Interest on DLF obligations	27.9		25.0		55.6		49.0
Total DLF obligation costs	39.3		34.2		78.3		67.2
Variable lease costs	2.0		2.9		4.4		6.4
Total lease costs	$	88.9	$	88.2	$	182.1	$	176.0

Other information related to leases (in millions):

	Six Months Ended June 30,
Supplemental Cash Flows Information	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	82.7	$	83.1
Operating cash flows from finance leases	$	6.2	$	5.4
Operating cash flows from DLF obligations	$	37.8	$	33.3
Financing cash flows from finance leases	$	1.8	$	1.9
Financing cash flows from DLF obligations	$	7.7	$	6.9
Lease liabilities arising from new ROU assets:
Operating leases	$	37.8	$	28.6
Financing leases	$	0.2	$	0.1
DLF obligations	$	37.0	$	108.9

	June 30, 2025		December 31, 2024
Weighted-average remaining lease term (years):
Operating leases	15.3		15.2
Financing leases	35.7		36.2
DLF obligations	36.4		36.8
Weighted-average discount rate:
Operating leases	5.9	%	5.8	%
Financing leases	6.8	%	6.5	%
DLF obligations	9.3	%	9.4	%

As of June 30, 2025, our future minimum lease obligations were as follows (in millions):

	Operating Leases		Financing Leases		DLF Obligations(1)		Total
Remainder of 2025	$	67.8	$	7.2	$	41.6	$	116.6
2026	154.5		18.2		101.2		273.9
2027	155.4		18.3		102.4		276.1
2028	155.2		18.7		104.6		278.5
2029	155.1		19.2		107.1		281.4
Thereafter	1,570.6		806.0		4,583.2		6,959.8
Total future lease payments	2,258.6		887.6		5,040.1		8,186.3
Less: imputed interest	856.9		590.9		3,800.4		5,248.2
Total	$	1,401.7	$	296.7	$	1,239.7	$	2,938.1
(1) Future lease payments for DLF Obligations include approximately $14.0 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of June 30, 2025. Imputed interest includes approximately $36.6 million related to these unfunded DLF Obligations as of June 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 June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Sales-type lease selling price(1)	$	11.8	$	10.9	$	21.1	$	18.4
Cost of underlying assets	(4.3)		(4.1)		(7.2)		(6.1)
Operating profit	$	7.5	$	6.8	$	13.9	$	12.3
Interest income	$	2.2	$	1.8	$	4.1	$	3.5
Total revenue attributable to sales-type leases	$	14.0	$	12.7	$	25.2	$	21.9
(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	June 30, 2025		December 31, 2024
Leasing receivables, net—short-term	Other current assets	$	38.6	$	33.9
Leasing receivables, net—long-term	Other assets	77.6		71.2
Total leasing receivables		$	116.2	$	105.1

Net maturities of sales-type lease receivables for the next five years and thereafter as of June 30, 2025 are as follows (in millions):

Remainder of 2025	$	26.8
2026	35.9
2027	29.0
2028	21.6
2029	13.8
Thereafter	5.3
Total future lease proceeds	132.4
Less: imputed interest	16.2
Total	$	116.2

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, 2025		December 31, 2024
Assets
Operating lease ROU assets, net	Operating lease ROU assets, net	$	1,266.8	$	1,339.2
Financing lease ROU assets, net	Other assets, net	$	249.1	$	261.4
Liabilities
Current
Operating lease liabilities, short-term	Operating lease liabilities, short-term	$	79.7	$	89.3
Financing lease liabilities, short-term	Accounts payable and accrued expenses	$	1.5	$	1.4
DLF obligations, short-term	Accounts payable and accrued expenses	$	1.0	$	1.0
Non-current
Operating lease liabilities, long-term	Operating lease liabilities, long-term	$	1,322.0	$	1,377.1
Financing lease liabilities, long-term	Other long-term liabilities	$	295.2	$	301.9
DLF obligations, long-term	Deemed landlord financing obligations	$	1,238.7	$	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

Our minimum capital commitment for leases under construction, net of reimbursements from third-party real estate financing partners, was approximately $46.0 million as of June 30, 2025. As we are actively involved in the construction of these properties, we recorded $81.8 million in construction costs within property, plant and equipment and $22.9 million in construction advances from the landlords in connection with these properties as of June 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 June 30, 2025, we had $603.5 million of future lease obligations related to five 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,
	2025		2024		2025		2024
Operating lease costs:	$	40.9	$	45.4	$	86.0	$	90.5
Financing lease costs:
Amortization of ROU assets	1.9		1.8		3.9		3.7
Interest on lease liabilities	4.8		3.9		9.5		8.2
Total financing lease costs	6.7		5.7		13.4		11.9
DLF obligation costs:
Depreciation of DLF assets	11.4		9.2		22.7		18.2
Interest on DLF obligations	27.9		25.0		55.6		49.0
Total DLF obligation costs	39.3		34.2		78.3		67.2
Variable lease costs	2.0		2.9		4.4		6.4
Total lease costs	$	88.9	$	88.2	$	182.1	$	176.0

Other information related to leases (in millions):

	Six Months Ended June 30,
Supplemental Cash Flows Information	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	82.7	$	83.1
Operating cash flows from finance leases	$	6.2	$	5.4
Operating cash flows from DLF obligations	$	37.8	$	33.3
Financing cash flows from finance leases	$	1.8	$	1.9
Financing cash flows from DLF obligations	$	7.7	$	6.9
Lease liabilities arising from new ROU assets:
Operating leases	$	37.8	$	28.6
Financing leases	$	0.2	$	0.1
DLF obligations	$	37.0	$	108.9

	June 30, 2025		December 31, 2024
Weighted-average remaining lease term (years):
Operating leases	15.3		15.2
Financing leases	35.7		36.2
DLF obligations	36.4		36.8
Weighted-average discount rate:
Operating leases	5.9	%	5.8	%
Financing leases	6.8	%	6.5	%
DLF obligations	9.3	%	9.4	%

As of June 30, 2025, our future minimum lease obligations were as follows (in millions):

	Operating Leases		Financing Leases		DLF Obligations(1)		Total
Remainder of 2025	$	67.8	$	7.2	$	41.6	$	116.6
2026	154.5		18.2		101.2		273.9
2027	155.4		18.3		102.4		276.1
2028	155.2		18.7		104.6		278.5
2029	155.1		19.2		107.1		281.4
Thereafter	1,570.6		806.0		4,583.2		6,959.8
Total future lease payments	2,258.6		887.6		5,040.1		8,186.3
Less: imputed interest	856.9		590.9		3,800.4		5,248.2
Total	$	1,401.7	$	296.7	$	1,239.7	$	2,938.1
(1) Future lease payments for DLF Obligations include approximately $14.0 million of reimbursements which we expect to receive from third-party financing partners that were not yet received as of June 30, 2025. Imputed interest includes approximately $36.6 million related to these unfunded DLF Obligations as of June 30, 2025.