Lucky Strike Entertainment CorpLUCK
Lucky Strike Entertainment Corp Leases Disclosure
Leases
The following table summarizes the components of the net lease cost:
Fiscal Year | ||||||||||||||||||||||||||
| Lease Costs: | Location on Consolidated Statements of Operations | June 29, 2025 | June 30, 2024 | July 2, 2023 | ||||||||||||||||||||||
Operating Lease Costs: (1) | ||||||||||||||||||||||||||
| Operating lease costs associated with master leases for locations | Primarily Location operating costs | $ | 17,709 | $ | 17,711 | $ | 21,357 | |||||||||||||||||||
| Operating lease costs associated with non-master leases for locations | Primarily Location operating costs | 61,856 | 52,355 | 36,815 | ||||||||||||||||||||||
Percentage rental costs for locations (2) | Primarily Location operating costs | 6,650 | 7,041 | 7,984 | ||||||||||||||||||||||
Equipment and other operating lease costs (3) | Primarily Location operating costs | 4,832 | 6,983 | 4,421 | ||||||||||||||||||||||
| Total Operating Lease Costs: | 91,047 | 84,090 | 70,577 | |||||||||||||||||||||||
| Finance Lease Costs: | ||||||||||||||||||||||||||
| Amortization of right-of-use assets | Depreciation and amortization | 17,446 | 17,160 | 12,743 | ||||||||||||||||||||||
| Interest expense | Interest expense, net | 49,653 | 49,198 | 42,378 | ||||||||||||||||||||||
| Total Finance Lease Costs: | 67,099 | 66,358 | 55,121 | |||||||||||||||||||||||
| Financing Obligation Costs: | ||||||||||||||||||||||||||
| Interest expense | Interest expense, net | 40,742 | 28,333 | 223 | ||||||||||||||||||||||
| Total Financing Obligation Costs: | 40,742 | 28,333 | 223 | |||||||||||||||||||||||
| Other Costs, Net: | ||||||||||||||||||||||||||
Variable occupancy costs (4) | Primarily Location operating costs | 68,443 | 60,189 | 47,141 | ||||||||||||||||||||||
| Gains from modifications to operating leases | Other operating (income) expense, net | (903) | (499) | (871) | ||||||||||||||||||||||
| Gains from modifications to finance leases | Primarily Location operating costs | — | — | (3,320) | ||||||||||||||||||||||
| Gains from modifications to financing obligations | Interest expense, net | — | — | (1,309) | ||||||||||||||||||||||
Other lease costs (5) | Primarily Location operating costs | 811 | 6,866 | 4,654 | ||||||||||||||||||||||
Sublease income (6) | Revenues - Amusement & other | (4,748) | (5,071) | (5,116) | ||||||||||||||||||||||
| Total Other Costs, Net | 63,603 | 61,485 | $ | 41,179 | ||||||||||||||||||||||
| Total Lease Costs, Net | $ | 262,491 | $ | 240,266 | $ | 167,100 | ||||||||||||||||||||
(1)Operating lease costs includes both cash and non-cash expenses for operating leases. The operating lease costs associated with our locations are recognized evenly over the lease term, therefore, the timing of the expense may differ from the timing of actual cash payments. Cash payments and lease costs can differ due to (a) the timing of cash payments relative to the level expense, (b)
non-cash adjustments as a result of purchase accounting, and (c) various other non-cash adjustments to lease costs. Please see the table below for cash paid for amounts included within our lease liabilities.
(2)Percentage rental costs for our locations primarily represents leases where we pay an extra rental amount based on a percentage of revenue in excess of predetermined revenue thresholds.
(3)Equipment and other operating lease costs primarily represents operating leases costs for equipment leases, common area maintenance charges, and other variable lease costs for operating leases where the lease payments escalate based on an index or rate.
(4)Variable occupancy costs primarily represents utilities, property insurance, and real estate taxes.
(5)Other lease costs primarily includes short-term lease costs and other variable payments for various equipment leases.
(6)Sublease income primarily represents short-term leases with pro-shops and various retail tenants.
Cash Paid for amounts included in the measurement of lease liabilities was as follows:
Fiscal Year | ||||||||||||||
| June 29, 2025 | June 30, 2024 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities (1) | ||||||||||||||
| Operating leases: | ||||||||||||||
| Operating cash flows paid for operating leases | $ | 65,781 | $ | 65,694 | ||||||||||
| Total cash paid for operating lease liabilities | 65,781 | 65,694 | ||||||||||||
| Finance leases: | ||||||||||||||
| Operating cash flows paid for interest portion of finance leases | 47,234 | 45,141 | ||||||||||||
| Financing cash flows paid for principal portion of finance leases | 1,615 | 6,298 | ||||||||||||
| Total cash paid for finance lease liabilities | 48,849 | 51,439 | ||||||||||||
| Financing Obligations: | ||||||||||||||
| Operating cash flows paid for interest portion of financing obligations | 32,402 | 22,644 | ||||||||||||
| Financing cash flows paid for principal portion of finance obligations | — | 24 | ||||||||||||
| Total cash paid for financing obligations: | 32,402 | 22,668 | ||||||||||||
Total cash amounts paid that are included in the measurement of lease liabilities:(2) | $ | 147,032 | $ | 139,801 | ||||||||||
(1)This table includes cash paid for amounts included in the measurement of our lease liabilities. Since the lease liability only includes amounts that are contractually fixed, this table excludes cash paid for amounts that are variable in nature, such as utilities, common area maintenance, property insurance, real estate taxes, and percentage rent.
(2)The total cash amounts within the above table include deferred repayments of $2,013 for operating leases and $4,341 for finance leases for the fiscal year ended June 29, 2025, and $4,249 for operating leases and $9,163 for finance leases for the fiscal year ended June 30, 2024 . As of June 29, 2025, there were no deferred payments remaining.
Other supplemental cash flow information related to leases was as follows:
Fiscal Year | ||||||||||||||
| June 29, 2025 | June 30, 2024 | |||||||||||||
| Supplemental Cash flow Information: | ||||||||||||||
Operating Cash Flows from landlord contributions | $ | 10,519 | $ | 2,400 | ||||||||||
Financing Cash Flows from landlord contributions | 417 | — | ||||||||||||
Other Non-cash Lease activities(1): | ||||||||||||||
Lease liabilities arising from operating lease assets | 75,336 | 157,373 | ||||||||||||
Lease liabilities arising from finance lease assets | 1,008 | 24,301 | ||||||||||||
(1)The change in lease assets is substantially the same as the change in lease liabilities
Supplemental balance sheet information related to leases was as follows:
| Balance Sheet Location | June 29, 2025 | June 30, 2024 | ||||||||||||||||||
| Operating leases: | ||||||||||||||||||||
| ROU Assets | Operating lease right of use assets | $ | 588,594 | $ | 559,168 | |||||||||||||||
Lease liabilities, Short-term(1) | Current obligations of operating lease liabilities | 33,103 | 28,460 | |||||||||||||||||
| Lease liabilities, Long-term | Long-term obligations of operating lease liabilities | 606,692 | 561,916 | |||||||||||||||||
| Finance leases: | ||||||||||||||||||||
| ROU Assets, net | Finance lease right of use assets, net | 507,701 | 524,392 | |||||||||||||||||
Lease liabilities, Short-term(1) | 780 | 1,954 | ||||||||||||||||||
| Lease liabilities, Long-term | Long-term obligations of finance lease liabilities | 683,161 | 680,213 | |||||||||||||||||
| Financing Obligations: | ||||||||||||||||||||
| Financing obligation, long-term | Long-term financing obligations | 449,215 | 440,875 | |||||||||||||||||
(1)Lease incentive receivables from landlords of $3,975 and $15,311 as of June 29, 2025 and June 30, 2024, respectively, are reflected as a reduction of the operating and finance lease liability
The following table summarizes the weighted average remaining lease term and weighted average remaining discount rate:
| Weighted average remaining lease terms in years | June 29, 2025 | June 30, 2024 | ||||||||||||
| Operating leases | 18.26 | 19.12 | ||||||||||||
| Finance leases | 29.91 | 30.90 | ||||||||||||
| Financing obligations | 52.91 | 53.90 | ||||||||||||
| Weighted average discount rate | ||||||||||||||
| Operating leases | 7.50 | % | 7.62 | % | ||||||||||
| Finance leases | 7.56 | % | 7.57 | % | ||||||||||
| Financing obligations | 9.53 | % | 9.53 | % | ||||||||||
The following table summarizes the maturity of our operating leases, finance leases, and financing obligations as of June 29, 2025:
| Operating leases | Finance leases | Financing obligations | ||||||||||||||||||
| 2026 | $ | 72,581 | $ | 44,407 | $ | 32,981 | ||||||||||||||
| 2027 | 76,090 | 47,436 | 33,659 | |||||||||||||||||
| 2028 | 81,773 | 52,390 | 37,218 | |||||||||||||||||
| 2029 | 69,484 | 48,496 | 35,074 | |||||||||||||||||
| 2030 | 59,913 | 46,697 | 32,773 | |||||||||||||||||
| Thereafter: | 881,751 | 1,604,482 | 3,347,202 | |||||||||||||||||
| Total lease payments | 1,241,592 | 1,843,908 | 3,518,907 | |||||||||||||||||
| Less: imputed interest | (601,797) | (1,159,967) | (3,069,692) | |||||||||||||||||
| Present value of lease liability: | $ | 639,795 | $ | 683,941 | $ | 449,215 | ||||||||||||||
Leases that have yet to commence
The Company has leases with build-out provisions for which the Company is generally not deemed to control the asset under construction. Therefore, the Company will determine the lease classification upon lease commencement. Our future lease obligations for these are $— and $14,668 as of June 29, 2025 and June 30, 2024, respectively.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 28, 2025 | Showing above |
| 2024 | Sep 5, 2024 | |
| 2023 | Sep 11, 2023 | |
| 2022 | Sep 15, 2022 | |
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.