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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
Company as Lessee
The Company is a lessee under non-cancelable operating and finance leases for offices, taverns, land, vehicles, slot machines and equipment. In addition, slot placement contracts in the form of space lease agreements at chain stores are accounted for as operating leases. Under chain store space lease agreements, the Company pays fixed monthly rental fees for the right to install, maintain and operate its slot machines at business locations, which are recorded in gaming expenses. The Company’s slot machine lease agreements with gaming equipment manufacturers are short-term in nature with the majority of such leases being under variable rent structure, with amounts determined based on the performance of the leased machines. Certain other short-term slot machine lease agreements are under fixed fee payment structure.
The leases have remaining lease terms of less than 1 year to 76 years, some of which include options to extend the leases for an additional 1 to 25 years. Some equipment leases and space lease agreements include options to terminate the lease with 60 days to 1 year notice. The Company assesses the options to extend or terminate the lease using a threshold of reasonably certain. For leases the Company is reasonably certain to renew, those option periods are included within the lease term and, therefore, the measurement of the ROU asset and lease liability.
The Company’s lease agreements for land, buildings and taverns with lease and non-lease components are accounted for separately. The lease and non-lease components of certain vehicle and equipment leases are accounted for as a single lease component. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants.
Lease expense for arrangements with a fixed fee payment structure is recognized on a straight-line basis over the lease term. Lease expense for arrangements under a variable rent structure is recognized in the period in which the obligation for the payment is incurred.
The Company leases approximately 4.5 acres of undeveloped land in Carson City. Upon the adoption of ASC 842, the Company wrote off the associated ROU asset for this land lease of $9.4 million with a charge to its beginning balance of retained earnings as of January 1, 2019. The Company is also lessee for several taverns and locations subject to space lease agreements that it does not plan to develop, operate, or sub-lease. The Company wrote off the associated ROU asset for these leases of $2.9 million with a charge to its beginning balance of retained earnings as of January 1, 2019.
The Company historically leased its office headquarters building and leases the office space in a building adjacent to the Company’s office headquarters building from a related party. Refer to “Note 13 — Related Party Transactions” for more detail.
The current and non-current obligations under finance leases are included in “Current portion of long-term debt and finance leases” and “Long-term debt, net and finance leases” in the Company’s consolidated balance sheets, respectively. The finance leases relate to equipment for the Company’s casino properties and buildings for certain casino and tavern locations.
The components of lease expense were as follows:
Year Ended December 31,
(In thousands)Classification20212020
Operating lease cost
Operating lease costOperating and SG&A expenses$54,131 $46,082 
Variable lease costOperating and SG&A expenses20,449 12,095 
Short-term lease costOperating and SG&A expenses4,862 4,964 
Total operating lease cost$79,442 $63,141 
Finance lease cost
Amortization of leased assetsDepreciation and amortization$1,693 $2,376 
Interest on lease liabilitiesInterest expense, net300 627 
Total finance lease cost$1,993 $3,003 
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
(In thousands)20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$53,527 $44,774 
Operating cash flows from finance leases293 491 
Financing cash flows from finance leases6,179 2,588 
Supplemental balance sheet information related to leases was as follows:
December 31,
(In thousands)20212020
Operating leases
Operating lease right-of-use assets, gross$221,732 $214,548 
Accumulated amortization(42,481)(33,995)
Operating lease right-of-use assets, net$179,251 $180,553 
Current portion of operating leases$40,151 $35,725 
Non-current operating leases155,098 160,248 
Total operating lease liabilities$195,249 $195,973 
Finance leases
Property and equipment, gross$6,278 $16,404 
Accumulated depreciation(2,407)(3,807)
Property and equipment, net$3,871 $12,597 
Current portion of finance leases$546 $3,507 
Non-current finance leases2,459 5,675 
Total finance lease liabilities$3,005 $9,182 
The following presents additional information related to the Company’s leases as of December 31, 2021:
December 31,
20212020
Weighted Average Remaining Lease Term
Operating leases7.8 years8.6 years
Finance leases16.4 years7.0 years
Weighted Average Discount Rate
Operating leases5.7 %6.0 %
Finance leases6.1 %6.5 %
Maturities of Lease Liabilities
As of December 31, 2021, maturities of lease liabilities were as follows:
(In thousands)Operating LeasesFinance LeasesTotal
2022$49,570 $629 $50,199 
202343,477 632 44,109 
202441,081 338 41,419 
202524,594 306 24,900 
202615,948 200 16,148 
Thereafter75,650 3,410 79,060 
Total lease payments250,320 5,515 255,835 
Amount of interest(55,071)(2,510)(57,581)
Present value of lease liabilities$195,249 $3,005 $198,254 
As of December 31, 2021, the Company did not have any leases that have not yet commenced but that create significant rights and obligations.
Company as Lessor
The Company leases space to third-party tenants under non-cancelable operating leases primarily for retail and food and beverage outlets within its casino properties. Golden also enters into operating lease agreements with certain equipment providers for placement of amusement devices and automated teller machines within its casino properties and taverns. The leases have remaining lease terms of 1 to 10 years, some of which include options to extend the leases for an additional 1 to 15 years.
Lease payments from tenants generally include minimum base rent, adjusted for contractual escalations as applicable, and/or contingent rental clauses based on a percentage of net sales exceeding minimum base rent. The Company records revenue on a straight-line basis over the term of the lease and recognizes revenue for contingent rentals when the contingency has been resolved. The Company combines lease and non-lease components for the purpose of measuring lease revenue, which is recorded in “Other revenue” in the Company’s consolidated statements of operations.
Minimum and contingent operating lease income was as follows:
Year Ended December 31,
(In thousands)202120202019
Minimum rental income$6,041 $3,913 $7,479 
Contingent rental income3,169 1,840 1,527 
Total rental income$9,210 $5,753 $9,006 
Future minimum rent payments to be received under operating leases are as follows (in thousands):
Year Ending December 31,Amount
2022$4,932 
20234,235 
20243,298 
20253,292 
20262,470 
Thereafter1,601 
Total future minimum rent payments$19,828 
Leases Leases
Company as Lessee
The Company is a lessee under non-cancelable operating and finance leases for offices, taverns, land, vehicles, slot machines and equipment. In addition, slot placement contracts in the form of space lease agreements at chain stores are accounted for as operating leases. Under chain store space lease agreements, the Company pays fixed monthly rental fees for the right to install, maintain and operate its slot machines at business locations, which are recorded in gaming expenses. The Company’s slot machine lease agreements with gaming equipment manufacturers are short-term in nature with the majority of such leases being under variable rent structure, with amounts determined based on the performance of the leased machines. Certain other short-term slot machine lease agreements are under fixed fee payment structure.
The leases have remaining lease terms of less than 1 year to 76 years, some of which include options to extend the leases for an additional 1 to 25 years. Some equipment leases and space lease agreements include options to terminate the lease with 60 days to 1 year notice. The Company assesses the options to extend or terminate the lease using a threshold of reasonably certain. For leases the Company is reasonably certain to renew, those option periods are included within the lease term and, therefore, the measurement of the ROU asset and lease liability.
The Company’s lease agreements for land, buildings and taverns with lease and non-lease components are accounted for separately. The lease and non-lease components of certain vehicle and equipment leases are accounted for as a single lease component. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants.
Lease expense for arrangements with a fixed fee payment structure is recognized on a straight-line basis over the lease term. Lease expense for arrangements under a variable rent structure is recognized in the period in which the obligation for the payment is incurred.
The Company leases approximately 4.5 acres of undeveloped land in Carson City. Upon the adoption of ASC 842, the Company wrote off the associated ROU asset for this land lease of $9.4 million with a charge to its beginning balance of retained earnings as of January 1, 2019. The Company is also lessee for several taverns and locations subject to space lease agreements that it does not plan to develop, operate, or sub-lease. The Company wrote off the associated ROU asset for these leases of $2.9 million with a charge to its beginning balance of retained earnings as of January 1, 2019.
The Company historically leased its office headquarters building and leases the office space in a building adjacent to the Company’s office headquarters building from a related party. Refer to “Note 13 — Related Party Transactions” for more detail.
The current and non-current obligations under finance leases are included in “Current portion of long-term debt and finance leases” and “Long-term debt, net and finance leases” in the Company’s consolidated balance sheets, respectively. The finance leases relate to equipment for the Company’s casino properties and buildings for certain casino and tavern locations.
The components of lease expense were as follows:
Year Ended December 31,
(In thousands)Classification20212020
Operating lease cost
Operating lease costOperating and SG&A expenses$54,131 $46,082 
Variable lease costOperating and SG&A expenses20,449 12,095 
Short-term lease costOperating and SG&A expenses4,862 4,964 
Total operating lease cost$79,442 $63,141 
Finance lease cost
Amortization of leased assetsDepreciation and amortization$1,693 $2,376 
Interest on lease liabilitiesInterest expense, net300 627 
Total finance lease cost$1,993 $3,003 
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
(In thousands)20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$53,527 $44,774 
Operating cash flows from finance leases293 491 
Financing cash flows from finance leases6,179 2,588 
Supplemental balance sheet information related to leases was as follows:
December 31,
(In thousands)20212020
Operating leases
Operating lease right-of-use assets, gross$221,732 $214,548 
Accumulated amortization(42,481)(33,995)
Operating lease right-of-use assets, net$179,251 $180,553 
Current portion of operating leases$40,151 $35,725 
Non-current operating leases155,098 160,248 
Total operating lease liabilities$195,249 $195,973 
Finance leases
Property and equipment, gross$6,278 $16,404 
Accumulated depreciation(2,407)(3,807)
Property and equipment, net$3,871 $12,597 
Current portion of finance leases$546 $3,507 
Non-current finance leases2,459 5,675 
Total finance lease liabilities$3,005 $9,182 
The following presents additional information related to the Company’s leases as of December 31, 2021:
December 31,
20212020
Weighted Average Remaining Lease Term
Operating leases7.8 years8.6 years
Finance leases16.4 years7.0 years
Weighted Average Discount Rate
Operating leases5.7 %6.0 %
Finance leases6.1 %6.5 %
Maturities of Lease Liabilities
As of December 31, 2021, maturities of lease liabilities were as follows:
(In thousands)Operating LeasesFinance LeasesTotal
2022$49,570 $629 $50,199 
202343,477 632 44,109 
202441,081 338 41,419 
202524,594 306 24,900 
202615,948 200 16,148 
Thereafter75,650 3,410 79,060 
Total lease payments250,320 5,515 255,835 
Amount of interest(55,071)(2,510)(57,581)
Present value of lease liabilities$195,249 $3,005 $198,254 
As of December 31, 2021, the Company did not have any leases that have not yet commenced but that create significant rights and obligations.
Company as Lessor
The Company leases space to third-party tenants under non-cancelable operating leases primarily for retail and food and beverage outlets within its casino properties. Golden also enters into operating lease agreements with certain equipment providers for placement of amusement devices and automated teller machines within its casino properties and taverns. The leases have remaining lease terms of 1 to 10 years, some of which include options to extend the leases for an additional 1 to 15 years.
Lease payments from tenants generally include minimum base rent, adjusted for contractual escalations as applicable, and/or contingent rental clauses based on a percentage of net sales exceeding minimum base rent. The Company records revenue on a straight-line basis over the term of the lease and recognizes revenue for contingent rentals when the contingency has been resolved. The Company combines lease and non-lease components for the purpose of measuring lease revenue, which is recorded in “Other revenue” in the Company’s consolidated statements of operations.
Minimum and contingent operating lease income was as follows:
Year Ended December 31,
(In thousands)202120202019
Minimum rental income$6,041 $3,913 $7,479 
Contingent rental income3,169 1,840 1,527 
Total rental income$9,210 $5,753 $9,006 
Future minimum rent payments to be received under operating leases are as follows (in thousands):
Year Ending December 31,Amount
2022$4,932 
20234,235 
20243,298 
20253,292 
20262,470 
Thereafter1,601 
Total future minimum rent payments$19,828