Annual report pursuant to Section 13 and 15(d)

LEASES

v3.22.2.2
LEASES
 12 Months Ended
Dec. 31, 2021
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.
As of December 31, 2021, the Company has additional operating leases that have not yet commenced of $53.8 million.
Lease related costs recognized in the Consolidated Statements of Operations for the year ended December 31, 2021 and 2020 are as follows:
Year Ended December 31, 2021 Year Ended December 31, 2020
Finance lease cost
Amortization of right-of-use assets $ 5,512  $ 6,062 
Interest on lease liabilities 1,158  1,142 
Total finance lease cost 6,670  7,204 
Operating lease cost
Operating lease cost 30,195  36,003 
Short-term lease cost 255  1,396 
Variable lease cost 22,394  11,087 
Total operating lease cost 52,844  48,486 
Total lease cost $ 59,514  $ 55,690 
Other information related to leases included on the Consolidated Balance Sheet as of and for the year ended December 31, 2021 is as follows:
Operating Leases Financing Leases
Right-of-use assets $ 181,915  $ 14,283 
Lease liabilities 182,550  14,275 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows 34,810  1,158 
Financing cash flows —  6,350 
Right-of-use assets obtained in exchange for lease liabilities 9,806  1,955 
Weighted average remaining lease term 14.3 years 3.3 years
Weighted average discount rate 8.21  % 6.03  %

Future minimum lease payments under non-cancellable leases as of December 31, 2021 are as follows:
Operating Leases Financing Leases
2022 $ 31,246  $ 5,897 
2023 31,142  4,906 
2024 25,142  2,744 
2025 22,095  1,544 
2026 19,740  600 
Thereafter 166,982  14 
Total minimum lease payments 296,347  15,705 
Less: imputed interest 113,797  1,430 
Total lease liabilities $ 182,550  $ 14,275 
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.
As of December 31, 2021, the Company has additional operating leases that have not yet commenced of $53.8 million.
Lease related costs recognized in the Consolidated Statements of Operations for the year ended December 31, 2021 and 2020 are as follows:
Year Ended December 31, 2021 Year Ended December 31, 2020
Finance lease cost
Amortization of right-of-use assets $ 5,512  $ 6,062 
Interest on lease liabilities 1,158  1,142 
Total finance lease cost 6,670  7,204 
Operating lease cost
Operating lease cost 30,195  36,003 
Short-term lease cost 255  1,396 
Variable lease cost 22,394  11,087 
Total operating lease cost 52,844  48,486 
Total lease cost $ 59,514  $ 55,690 
Other information related to leases included on the Consolidated Balance Sheet as of and for the year ended December 31, 2021 is as follows:
Operating Leases Financing Leases
Right-of-use assets $ 181,915  $ 14,283 
Lease liabilities 182,550  14,275 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows 34,810  1,158 
Financing cash flows —  6,350 
Right-of-use assets obtained in exchange for lease liabilities 9,806  1,955 
Weighted average remaining lease term 14.3 years 3.3 years
Weighted average discount rate 8.21  % 6.03  %

Future minimum lease payments under non-cancellable leases as of December 31, 2021 are as follows:
Operating Leases Financing Leases
2022 $ 31,246  $ 5,897 
2023 31,142  4,906 
2024 25,142  2,744 
2025 22,095  1,544 
2026 19,740  600 
Thereafter 166,982  14 
Total minimum lease payments 296,347  15,705 
Less: imputed interest 113,797  1,430 
Total lease liabilities $ 182,550  $ 14,275