Six Flags Entertainment Corporation/NEWFUN
Six Flags Entertainment Corporation/NEW Leases Disclosure
Leases:
The Company's most significant lease commitments are for amusement and water parks and land. Leased amusement and water parks include Frontier City, Six Flags Hurricane Harbor Oklahoma City, Six Flags Darien Lake, Six Flags Hurricane Harbor Concord, Six Flags Hurricane Harbor Phoenix, Six Flags Hurricane Harbor Splashtown and Six Flags Hurricane Harbor Rockford, all of which were acquired as part of the Mergers. These amusement and water park leases are for various lengths expiring between 2029 and 2037. Every five years, annual base rent increases by the lesser of three times CPI or 9% for all parks except for Six Flags Hurricane Harbor Concord which increases by the lesser of three times CPI or 8% and Six Flags Hurricane Harbor Rockford which is leased from a separate lessor. These amusement and water park leases include options to renew, which were not included in the calculation of the related right-of-use assets or lease liabilities.
Leased land includes the land under California's Great America, Schlitterbahn Waterpark Galveston, La Ronde, Six Flags Hurricane Harbor Oaxtepec and Six Flags Mexico. The land at California's Great America was sold in June 2022. Concurrently with the sale of the land, Cedar Fair entered into a lease contract that allows the Company to operate the park during a six-year term with an option to extend the term for an additional five years. The lease is subject to early termination by the buyer with at least two years' prior notice. Upon termination of the lease, the existing park operations will close and the rides and attractions will be removed from the land. The annual base rent under the lease liability initially was $12.2 million and increases by 2.5% per year. Upon commencement of the lease, Cedar Fair recognized a right-of-use asset and lease liability equal to the annual base rent for the initial six-year term and estimated lease payments totaling $12.8 million to dismantle and remove rides and attractions upon termination of the lease. The Company subleases a portion of the California's Great America parking lot to the Santa Clara Stadium Authority during Levi's Stadium events. The lease payments were prepaid, and the corresponding income is being recognized over the lease term, or through 2027. The annual lease income recognized is immaterial. The Schlitterbahn Waterpark Galveston land lease has renewal options at the Company's discretion through 2049, which were included in the calculation of the related right-of-use asset or lease liability. The La Ronde, Six Flags Hurricane Harbor Oaxtepec and Six Flags Mexico leases were acquired as part of the Mergers, and primarily include land, but these leases also include limited buildings and equipment. The La Ronde, Six Flags Hurricane Harbor Oaxtepec and Six Flags Mexico leases expire in 2065, 2036 and 2034, respectively.
Other significant lease commitments include corporate office space in Charlotte, North Carolina and Arlington, Texas. The corporate office space is generally leased through 2029 in Charlotte and 2035 in Arlington. The Company has also entered into various operating leases for office equipment, vehicles, storage and revenue-generating assets. The discount rate used to determine the present value of the future lease payments is generally the Company's incremental borrowing rate. All acquired leases were valued using the Company's incremental borrowing rate as of the Closing Date. As part of the valuation of assets acquired and liabilities assumed in the Mergers, the leases at Six Flags Hurricane Harbor Splashtown and Six Flags Hurricane Harbor Oklahoma City were determined to have unfavorable lease terms based upon a market rent analysis. This resulted in a reduction of the right-of-use assets and lease liabilities recorded for Six Flags Hurricane Harbor Splashtown and Six Flags Hurricane Harbor Oklahoma City of $19.2 million and $6.2 million, respectively, within the preliminary purchase price allocation.
Total lease cost and related supplemental information for the years ended December 31, 2025, 2024 and 2023 were as follows:
| Years Ended December 31, | ||||||||||||||||||||
| (In thousands, except for lease terms and discount rates) | 2025 | 2024 | 2023 | |||||||||||||||||
| Operating lease expense | $ | 42,014 | $ | 30,161 | $ | 19,422 | ||||||||||||||
| Variable lease expense | 3,248 | 4,321 | 382 | |||||||||||||||||
| Short-term lease expense | 15,239 | 13,354 | 9,580 | |||||||||||||||||
| Sublease income | (1,524) | (1,496) | (1,436) | |||||||||||||||||
| Finance lease expense | ||||||||||||||||||||
| Amortization of ROU assets | 1,273 | 650 | — | |||||||||||||||||
| Interest on lease liabilities | 97 | 85 | — | |||||||||||||||||
| Total lease cost | $ | 60,347 | $ | 47,075 | $ | 27,948 | ||||||||||||||
| Operating leases | ||||||||||||||||||||
| Weighted-average remaining lease term | 13.0 years | 13.2 years | 5.8 years | |||||||||||||||||
| Weighted-average discount rate | 6.6 | % | 6.3 | % | 3.9 | % | ||||||||||||||
| Cash flows for operating leases | $ | 39,575 | $ | 31,237 | $ | 16,046 | ||||||||||||||
| Leased assets obtained in exchange for new operating lease liabilities (non-cash activity) | $ | 1,698 | $ | 170,159 | $ | 4,306 | ||||||||||||||
| Finance leases | ||||||||||||||||||||
| Weighted-average remaining lease term | 2.1 years | 2.5 years | — | |||||||||||||||||
| Weighted-average discount rate | 5.8 | % | 6.1 | % | — | |||||||||||||||
| Cash flows for finance leases | $ | 1,250 | $ | 623 | — | |||||||||||||||
| Leased assets obtained in exchange for new finance lease liabilities (non-cash activity) | $ | — | $ | 3,152 | — | |||||||||||||||
Future undiscounted cash flows under operating and finance leases and a reconciliation to the operating and finance lease liabilities recognized as of December 31, 2025 are included below:
| (In thousands) | December 31, 2025 | |||||||||||||
| Operating Leases | Finance Leases | |||||||||||||
| Undiscounted cash flows | ||||||||||||||
| 2026 | $ | 39,954 | $ | 607 | ||||||||||
| 2027 | 39,909 | 221 | ||||||||||||
| 2028 | 48,051 | 105 | ||||||||||||
| 2029 | 24,708 | — | ||||||||||||
| 2030 | 23,139 | — | ||||||||||||
| Thereafter | 198,628 | — | ||||||||||||
| Total | $ | 374,389 | $ | 933 | ||||||||||
| Present value of cash flows | ||||||||||||||
| Current lease liability | $ | 26,321 | $ | 604 | ||||||||||
| Lease Liability | 218,989 | 301 | ||||||||||||
| Total | $ | 245,310 | $ | 905 | ||||||||||
| Difference between undiscounted cash flows and discounted cash flows | $ | 129,079 | $ | 28 | ||||||||||
The following table includes supplemental balance sheet information related to operating and finance leases for the periods presented.
| (In thousands) | Balance Sheet Location | December 31, 2025 | December 31, 2024 | ||||||||||||||
| Operating leases | |||||||||||||||||
| Right-of-use asset | Right-of-use asset | $ | 214,986 | $ | 227,284 | ||||||||||||
| Current lease liability | $ | 26,321 | $ | 25,817 | |||||||||||||
| Non-current lease liability | $ | 218,989 | $ | 229,072 | |||||||||||||
| Finance leases | |||||||||||||||||
| Right-of-use asset | Property and equipment, net | $ | 1,379 | $ | 2,481 | ||||||||||||
| Current lease liability | $ | 604 | $ | 1,143 | |||||||||||||
| Non-current lease liability | $ | 301 | $ | 1,371 | |||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.