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Related Party Transactions
12 Months Ended
Dec. 31, 2020
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
As of December 31, 2020, the Company leased its office headquarters building from a company 33% beneficially owned by Blake L. Sartini, 5% owned by a trust for the benefit of Mr. Sartini’s immediate family members (including Blake L. Sartini, II) for which Mr. Sartini serves as trustee, and 3% beneficially owned by Stephen A. Arcana. The lease for the Company’s office headquarters building expires on December 31, 2030. The rent expense for the office headquarters building was $1.6 million for the year ended December 31, 2020 and $1.3 million for each of the years ended December 31, 2019 and 2018. No amount was owed to the Company, and no amount was due and payable by the Company, under this lease arrangement as of December 31, 2020 and 2019. Additionally, a portion of the office headquarters building was sublet to Sartini Enterprises, Inc., a company controlled by Mr. Sartini. Rental income during each of the years ended December 31, 2020, 2019 and 2018 for the sublet portion of the office headquarters building was insignificant. No amount was owed to the Company under such sublease as of December 31, 2020 and 2019. In addition, Golden and Sartini Enterprises, Inc. participate in certain cost-sharing arrangements. The amount due and payable by the Company under such arrangements was insignificant as of December 31, 2020 and no amount was due and payable by the Company as of December 31, 2019. Mr. Sartini serves as the Chairman of the Board and Chief Executive Officer of the Company and is co-trustee of the Sartini Trust, which is a significant shareholder of the Company. Mr. Arcana serves as the Executive Vice President and Chief Operating Officer of the Company.
In November 2018, the Company entered into a lease agreement for office space in a building adjacent to the Company’s office headquarters building to be constructed and owned by a company 33% beneficially owned by Mr. Sartini, 5% owned by a trust for the benefit of Mr. Sartini’s immediate family members (including Blake L. Sartini, II) for which Mr. Sartini serves as trustee, and 3% beneficially owned by Mr. Arcana. The lease commenced in August 2020 and expires on December 31, 2030. The rent expense for the space was $0.1 million for the year ended December 31, 2020. Additionally, the lease agreement includes a right of first refusal for additional space on the second floor of the building.
One tavern location that the Company had previously leased from a related party was sold in the second quarter of 2019 to an unrelated third party. As a result, the Company did not incur any rent expense for such tavern location for the year ended December 31, 2020 and the rent expense for such tavern was $0.2 million (for the period within which it was leased by a related party) and $0.4 million for the years ended December 31, 2019 and 2018, respectively. No tavern locations were leased from related parties as of December 31, 2020 and 2019.
From time to time, the Company’s executive officers and employees use for Company business a private aircraft that is owned by or leased to Sartini Enterprises, Inc., pursuant to aircraft timesharing, co-user and cost-sharing agreements between the Company and Sartini Enterprises, Inc. that have been approved by the Audit Committee of the Board of Directors. The aircraft timesharing, co-user and cost-sharing agreements specify the maximum expense reimbursement that Sartini Enterprises, Inc. can charge the Company under the applicable regulations of the Federal Aviation Administration for the use of the aircraft and flight crew. Such costs include fuel, landing fees, hangar and tie-down costs away from the aircraft’s operating base, flight planning and weather contract services, crew costs and other related expenses. The Company’s compliance department regularly reviews these reimbursements. The Company paid $0.5 million for the year ended December 31, 2020 and $0.6 million for each of the years ended December 31, 2019 and 2018 under these arrangements. No amount was due and payable by the Company and no amount was owed to the Company under these agreements as of December 31, 2020 and 2019.
One of the distributed gaming locations at which the Company’s slots are located was owned in part by Sean T. Higgins, who previously served as Executive Vice President of Government Affairs of the Company. This agreement was in place prior to Mr. Higgins’s joining the Company on March 28, 2016. Net revenues recorded by the Company from the use of the Company’s slots at this location were $0.8 million for the year ended December 31, 2020 and $1.0 million for each of the years ended December 31, 2019 and 2018. Gaming expenses related to this location were $0.7 million for the year ended December 31, 2020 and $0.9 million for each of the years ended December 31, 2019 and 2018. An insignificant amount was owed to the Company and due and payable by the Company related to this arrangement as of December 31, 2020 and 2019.
In connection with the Sartini Gaming merger, Lyle A. Berman, an independent non-employee member of the Company’s Board of Directors, entered into a three-year consulting agreement with the Company pursuant to which the Company paid his wholly-owned consulting firm $200,000 annually, plus reimbursements for certain health insurance, administrative assistant and office costs. The consulting agreement expired on July 31, 2018 and as such, there were no expenses incurred by the Company for the agreement for the years ended December 31, 2020 and 2019. The Company recorded less than $0.1 million under this consulting arrangement with Mr. Berman for the year ended December 31, 2018.
On December 22, 2020, the Company repurchased 50,000 shares of its common stock from Mr. Berman pursuant to its share repurchase program at a price of $19.00 per share, resulting in a charge to accumulated deficit for $1.0 million. This transaction was approved by the Audit Committee of the Board of Directors prior to being executed.