Annual report pursuant to Section 13 and 15(d)

LEASES

v3.20.4
LEASES
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
LEASES LEASES
On January 1, 2019, the Company adopted ASU 2016-02 using a modified retrospective approach, resulting in the recognition of operating lease right-of-use assets and operating lease liabilities of $225.6 million and $205.9 million, respectively, with the difference primarily due to reclassifications of leasehold intangibles and an adjustment to accumulated deficit.
The Company's commitments under lease arrangements are primarily ground leases for Entertainment Golf venues and Traditional Golf properties and related facilities, office leases and leases for golf carts and equipment. The majority of lease terms for our Entertainment Golf venues and Traditional Golf properties and related facilities initially range from 10 to 20 years and include up to eight 5-year renewal options. In addition to minimum payments, certain leases require payment of the excess of various percentages of gross revenue or net operating income over the minimum rental payments. The leases generally require the payment of taxes assessed against the leased property and the cost of insurance and maintenance. Certain leases include scheduled increases or decreases in minimum rental payments at various times during the term of the lease.
Equipment and golf cart leases initially range between 24 to 66 months and typically contain renewal options which may be on a month-to-month basis.
An option to renew a lease is included in the determination of the ROU asset and lease liability when it is reasonably certain that the renewal option will be exercised.
Lease related costs recognized in the Consolidated Statements of Operations for the year ended December 31, 2020 and 2019 are as follows:
Year Ended December 31, 2020 Year Ended December 31, 2019
Finance lease cost
Amortization of right-of-use assets $ 6,062  $ 6,305 
Interest on lease liabilities 1,142  1,313 
Total finance lease cost 7,204  7,618 
Operating lease cost
Operating lease cost 36,003  36,236 
Short-term lease cost 1,396  2,288 
Variable lease cost 11,087  16,667 
Total operating lease cost 48,486  55,191 
Total lease cost $ 55,690  $ 62,809 
Other information related to leases included on the Consolidated Balance Sheet as of and for the year ended December 31, 2020 is as follows:
Operating Leases Financing Leases
Right-of-use assets $ 192,828  $ 19,043 
Lease liabilities $ 187,732  $ 19,021 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows $ 24,025  $ 1,142 
Financing cash flows —  $ 5,591 
Right-of-use assets obtained in exchange for lease liabilities $ 679  $ 6,068 
Weighted average remaining lease term 12.5 years 3.5 years
Weighted average discount rate 8.38  % 6.72  %

Future minimum lease payments under non-cancellable leases as of December 31, 2020 are as follows:
Operating Leases Financing Leases
2021 $ 34,152  $ 7,136 
2022 29,102  5,675 
2023 28,941  4,613 
2024 22,789  2,423 
2025 20,161  1,177 
Thereafter 177,666  313 
Total minimum lease payments 312,811  21,337 
Less: imputed interest 125,079  2,316 
Total lease liabilities $ 187,732  $ 19,021 
LEASES LEASES
On January 1, 2019, the Company adopted ASU 2016-02 using a modified retrospective approach, resulting in the recognition of operating lease right-of-use assets and operating lease liabilities of $225.6 million and $205.9 million, respectively, with the difference primarily due to reclassifications of leasehold intangibles and an adjustment to accumulated deficit.
The Company's commitments under lease arrangements are primarily ground leases for Entertainment Golf venues and Traditional Golf properties and related facilities, office leases and leases for golf carts and equipment. The majority of lease terms for our Entertainment Golf venues and Traditional Golf properties and related facilities initially range from 10 to 20 years and include up to eight 5-year renewal options. In addition to minimum payments, certain leases require payment of the excess of various percentages of gross revenue or net operating income over the minimum rental payments. The leases generally require the payment of taxes assessed against the leased property and the cost of insurance and maintenance. Certain leases include scheduled increases or decreases in minimum rental payments at various times during the term of the lease.
Equipment and golf cart leases initially range between 24 to 66 months and typically contain renewal options which may be on a month-to-month basis.
An option to renew a lease is included in the determination of the ROU asset and lease liability when it is reasonably certain that the renewal option will be exercised.
Lease related costs recognized in the Consolidated Statements of Operations for the year ended December 31, 2020 and 2019 are as follows:
Year Ended December 31, 2020 Year Ended December 31, 2019
Finance lease cost
Amortization of right-of-use assets $ 6,062  $ 6,305 
Interest on lease liabilities 1,142  1,313 
Total finance lease cost 7,204  7,618 
Operating lease cost
Operating lease cost 36,003  36,236 
Short-term lease cost 1,396  2,288 
Variable lease cost 11,087  16,667 
Total operating lease cost 48,486  55,191 
Total lease cost $ 55,690  $ 62,809 
Other information related to leases included on the Consolidated Balance Sheet as of and for the year ended December 31, 2020 is as follows:
Operating Leases Financing Leases
Right-of-use assets $ 192,828  $ 19,043 
Lease liabilities $ 187,732  $ 19,021 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows $ 24,025  $ 1,142 
Financing cash flows —  $ 5,591 
Right-of-use assets obtained in exchange for lease liabilities $ 679  $ 6,068 
Weighted average remaining lease term 12.5 years 3.5 years
Weighted average discount rate 8.38  % 6.72  %

Future minimum lease payments under non-cancellable leases as of December 31, 2020 are as follows:
Operating Leases Financing Leases
2021 $ 34,152  $ 7,136 
2022 29,102  5,675 
2023 28,941  4,613 
2024 22,789  2,423 
2025 20,161  1,177 
Thereafter 177,666  313 
Total minimum lease payments 312,811  21,337 
Less: imputed interest 125,079  2,316 
Total lease liabilities $ 187,732  $ 19,021