Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.21.2
LEASES
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
LEASES LEASES
The Company's commitments under lease arrangements are primarily ground leases, in the case of our Drive Shack brand, and commercial leases, in the case of our Puttery brand, 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 (see Note 13 for additional detail). 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 three and six months ended June 30, 2021, and June 30, 2020, are as follows:
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Finance lease cost
Amortization of right-of-use assets $ 1,280  $ 1,485  $ 2,747  $ 3,016 
Interest on lease liabilities 296  246  622  587 
Total finance lease cost 1,576  1,731  3,369  3,603 
Operating lease cost
Operating lease cost 7,666  9,002  16,570  18,269 
Short-term lease cost 170  421  510  848 
Variable lease cost 5,622  1,541  9,630  4,331 
Total operating lease cost 13,458  10,964  26,710  23,448 
Total lease cost $ 15,034  $ 12,695  $ 30,079  $ 27,051 
Other information related to leases included on the Consolidated Balance Sheet as of and for the six months ended June 30, 2021 are as follows:
Operating Leases Financing Leases
Right-of-use assets $ 187,870  $ 16,081 
Lease liabilities $ 189,997  $ 15,996 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows $ 15,242  $ 296 
Financing cash flows $ —  $ 3,082 
Right-of-use assets obtained in exchange for lease liabilities $ 7,002  $ 495 
Weighted average remaining lease term 14.3 years 3.4 years
Weighted average discount rate 8.3  % 6.3  %

Future minimum lease payments under non-cancellable leases as of June 30, 2021 are as follows:
Operating Leases Financing Leases
July 1, 2021 - December 31, 2021 $ 19,522  $ 3,406 
2022 30,662  5,641 
2023 30,514  4,642 
2024 24,536  2,472 
2025 21,555  1,264 
Thereafter 183,074  330 
Total minimum lease payments 309,863  17,755 
Less: imputed interest 119,866  1,759 
Total lease liabilities $ 189,997  $ 15,996 
LEASES LEASES
The Company's commitments under lease arrangements are primarily ground leases, in the case of our Drive Shack brand, and commercial leases, in the case of our Puttery brand, 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 (see Note 13 for additional detail). 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 three and six months ended June 30, 2021, and June 30, 2020, are as follows:
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Finance lease cost
Amortization of right-of-use assets $ 1,280  $ 1,485  $ 2,747  $ 3,016 
Interest on lease liabilities 296  246  622  587 
Total finance lease cost 1,576  1,731  3,369  3,603 
Operating lease cost
Operating lease cost 7,666  9,002  16,570  18,269 
Short-term lease cost 170  421  510  848 
Variable lease cost 5,622  1,541  9,630  4,331 
Total operating lease cost 13,458  10,964  26,710  23,448 
Total lease cost $ 15,034  $ 12,695  $ 30,079  $ 27,051 
Other information related to leases included on the Consolidated Balance Sheet as of and for the six months ended June 30, 2021 are as follows:
Operating Leases Financing Leases
Right-of-use assets $ 187,870  $ 16,081 
Lease liabilities $ 189,997  $ 15,996 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows $ 15,242  $ 296 
Financing cash flows $ —  $ 3,082 
Right-of-use assets obtained in exchange for lease liabilities $ 7,002  $ 495 
Weighted average remaining lease term 14.3 years 3.4 years
Weighted average discount rate 8.3  % 6.3  %

Future minimum lease payments under non-cancellable leases as of June 30, 2021 are as follows:
Operating Leases Financing Leases
July 1, 2021 - December 31, 2021 $ 19,522  $ 3,406 
2022 30,662  5,641 
2023 30,514  4,642 
2024 24,536  2,472 
2025 21,555  1,264 
Thereafter 183,074  330 
Total minimum lease payments 309,863  17,755 
Less: imputed interest 119,866  1,759 
Total lease liabilities $ 189,997  $ 15,996