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Leases | 12 Months Ended
--- | ---
Dec. 31, 2023
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, prior to the sale of the Company’s distributed gaming operations, slot placement contracts in the form of space lease agreements at chain stores were accounted for as operating leases. The Company’s slot machine lease agreements with gaming equipment manufacturers were 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 were under fixed fee payment structure. The leases have remaining lease terms of less than 1 year and up to 74 years, some of which include options to extend the leases for an additional 1 to 25 years. The Company’s equipment leases include options to terminate the lease with 30 day 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 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 14 — 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 non-current 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 branded tavern locations. The components of lease expense were as follows:
|  |  | Year Ended December 31,
(In thousands) | Classification |  | 2023 |  | 2022
Operating lease cost |  |  |  |  |
Operating lease cost | Operating and SG&A expenses |  | $ | 50,118 |  |  | $ | 55,907 |
Variable lease cost | Operating and SG&A expenses |  | 12,612 |  |  | 17,943 |
Short-term lease cost | Operating and SG&A expenses |  | 8,649 |  |  | 4,796 |
Total operating lease cost |  |  | $ | 71,379 |  |  | $ | 78,646 |
Finance lease cost |  |  |  |  |
Amortization of leased assets | Depreciation and amortization |  | $ | 475 |  |  | $ | 934 |
Interest on lease liabilities | Interest expense, net |  | 89 |  |  | 114 |
Total finance lease cost |  |  | $ | 564 |  |  | $ | 1,048 |
Supplemental cash flow information related to leases was as follows:
| Year Ended December 31,
(In thousands) | 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows used under operating lease agreements | $ | 50,605 |  |  | $ | 55,846 |
Operating cash flows used under finance lease agreements | 87 |  |  | 109 |
Financing cash flows used under finance lease agreements | 527 |  |  | 541 |
Supplemental balance sheet information related to leases was as follows:
| December 31,
(In thousands) | 2023 |  | 2022
Operating leases |  |  |
Operating lease right-of-use assets, gross | $ | 92,481 |  |  | $ | 193,565 |
Accumulated amortization | (13,085) |  |  | (45,672) |
Operating lease right-of-use assets, net | $ | 79,396 |  |  | $ | 147,893 |
Current portion of operating leases | $ | 13,745 |  |  | $ | 42,200 |
Non-current operating leases | 81,325 |  |  | 121,979 |
Total operating lease liabilities | $ | 95,070 |  |  | $ | 164,179 |
Finance leases |  |  |
Property and equipment, gross | $ | 5,719 |  |  | $ | 5,719 |
Accumulated depreciation | (3,594) |  |  | (3,341) |
Property and equipment, net | $ | 2,125 |  |  | $ | 2,378 |
Current portion of finance leases | $ | 158 |  |  | $ | 465 |
Non-current finance leases | 1,533 |  |  | 1,692 |
Total finance lease liabilities | $ | 1,691 |  |  | $ | 2,157 |
The following presents additional information related to the Company’s leases as of December 31, 2023:
| December 31,
| 2023 |  | 2022
Weighted Average Remaining Lease Term |  |  |
Operating leases | 7.3 years |  | 7.5 years
Finance leases | 23.5 years |  | 18.0 years
Weighted Average Discount Rate |  |  |
Operating leases | 6.3 | % |  | 5.9 | %
Finance leases | 6.8 | % |  | 6.4 | %
Maturities of Lease Liabilities As of December 31, 2023, maturities of lease liabilities were as follows:
(In thousands) | Operating Leases |  | Finance Leases |  | Total
2024 | $ | 19,485 |  |  | $ | 227 |  |  | $ | 19,712 |
2025 | 18,914 |  |  | 200 |  |  | 19,114 |
2026 | 17,187 |  |  | 200 |  |  | 17,387 |
2027 | 14,129 |  |  | 214 |  |  | 14,343 |
2028 | 11,389 |  |  | 217 |  |  | 11,606 |
Thereafter | 52,844 |  |  | 2,997 |  |  | 55,841 |
Total lease payments | 133,948 |  |  | 4,055 |  |  | 138,003 |
Amount of interest | (38,878) |  |  | (2,364) |  |  | (41,242) |
Present value of lease liabilities | $ | 95,070 |  |  | $ | 1,691 |  |  | $ | 96,761 |
As of December 31, 2023, the Company had one lease agreement that had not yet commenced but created significant rights and obligations. Specifically, the Company’s three-year $3.6 million finance lease agreement for certain equipment at The STRAT commenced on January 1, 2024. Company as Lessor The Company leases space to third-party tenants under 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, gaming machines and automated teller machines within its casino properties and branded 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) | 2023 |  | 2022 |  | 2021
Minimum rental income | $ | 8,234 |  |  | $ | 7,380 |  |  | $ | 6,041 |
Contingent rental income | 3,298 |  |  | 4,071 |  |  | 3,169 |
Total rental income | $ | 11,532 |  |  | $ | 11,451 |  |  | $ | 9,210 |
Future minimum rent payments to be received under operating leases are as follows (in thousands):
Year Ending December 31, | Amount
2024 | $ | 5,160 |
2025 | 4,792 |
2026 | 4,061 |
2027 | 1,300 |
2028 | 857 |
Thereafter | 1,555 |
Total future minimum rent payments | $ | 17,725 |
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, prior to the sale of the Company’s distributed gaming operations, slot placement contracts in the form of space lease agreements at chain stores were accounted for as operating leases. The Company’s slot machine lease agreements with gaming equipment manufacturers were 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 were under fixed fee payment structure. The leases have remaining lease terms of less than 1 year and up to 74 years, some of which include options to extend the leases for an additional 1 to 25 years. The Company’s equipment leases include options to terminate the lease with 30 day 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 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 14 — 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 non-current 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 branded tavern locations. The components of lease expense were as follows:
|  |  | Year Ended December 31,
(In thousands) | Classification |  | 2023 |  | 2022
Operating lease cost |  |  |  |  |
Operating lease cost | Operating and SG&A expenses |  | $ | 50,118 |  |  | $ | 55,907 |
Variable lease cost | Operating and SG&A expenses |  | 12,612 |  |  | 17,943 |
Short-term lease cost | Operating and SG&A expenses |  | 8,649 |  |  | 4,796 |
Total operating lease cost |  |  | $ | 71,379 |  |  | $ | 78,646 |
Finance lease cost |  |  |  |  |
Amortization of leased assets | Depreciation and amortization |  | $ | 475 |  |  | $ | 934 |
Interest on lease liabilities | Interest expense, net |  | 89 |  |  | 114 |
Total finance lease cost |  |  | $ | 564 |  |  | $ | 1,048 |
Supplemental cash flow information related to leases was as follows:
| Year Ended December 31,
(In thousands) | 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows used under operating lease agreements | $ | 50,605 |  |  | $ | 55,846 |
Operating cash flows used under finance lease agreements | 87 |  |  | 109 |
Financing cash flows used under finance lease agreements | 527 |  |  | 541 |
Supplemental balance sheet information related to leases was as follows:
| December 31,
(In thousands) | 2023 |  | 2022
Operating leases |  |  |
Operating lease right-of-use assets, gross | $ | 92,481 |  |  | $ | 193,565 |
Accumulated amortization | (13,085) |  |  | (45,672) |
Operating lease right-of-use assets, net | $ | 79,396 |  |  | $ | 147,893 |
Current portion of operating leases | $ | 13,745 |  |  | $ | 42,200 |
Non-current operating leases | 81,325 |  |  | 121,979 |
Total operating lease liabilities | $ | 95,070 |  |  | $ | 164,179 |
Finance leases |  |  |
Property and equipment, gross | $ | 5,719 |  |  | $ | 5,719 |
Accumulated depreciation | (3,594) |  |  | (3,341) |
Property and equipment, net | $ | 2,125 |  |  | $ | 2,378 |
Current portion of finance leases | $ | 158 |  |  | $ | 465 |
Non-current finance leases | 1,533 |  |  | 1,692 |
Total finance lease liabilities | $ | 1,691 |  |  | $ | 2,157 |
The following presents additional information related to the Company’s leases as of December 31, 2023:
| December 31,
| 2023 |  | 2022
Weighted Average Remaining Lease Term |  |  |
Operating leases | 7.3 years |  | 7.5 years
Finance leases | 23.5 years |  | 18.0 years
Weighted Average Discount Rate |  |  |
Operating leases | 6.3 | % |  | 5.9 | %
Finance leases | 6.8 | % |  | 6.4 | %
Maturities of Lease Liabilities As of December 31, 2023, maturities of lease liabilities were as follows:
(In thousands) | Operating Leases |  | Finance Leases |  | Total
2024 | $ | 19,485 |  |  | $ | 227 |  |  | $ | 19,712 |
2025 | 18,914 |  |  | 200 |  |  | 19,114 |
2026 | 17,187 |  |  | 200 |  |  | 17,387 |
2027 | 14,129 |  |  | 214 |  |  | 14,343 |
2028 | 11,389 |  |  | 217 |  |  | 11,606 |
Thereafter | 52,844 |  |  | 2,997 |  |  | 55,841 |
Total lease payments | 133,948 |  |  | 4,055 |  |  | 138,003 |
Amount of interest | (38,878) |  |  | (2,364) |  |  | (41,242) |
Present value of lease liabilities | $ | 95,070 |  |  | $ | 1,691 |  |  | $ | 96,761 |
As of December 31, 2023, the Company had one lease agreement that had not yet commenced but created significant rights and obligations. Specifically, the Company’s three-year $3.6 million finance lease agreement for certain equipment at The STRAT commenced on January 1, 2024. Company as Lessor The Company leases space to third-party tenants under 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, gaming machines and automated teller machines within its casino properties and branded 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) | 2023 |  | 2022 |  | 2021
Minimum rental income | $ | 8,234 |  |  | $ | 7,380 |  |  | $ | 6,041 |
Contingent rental income | 3,298 |  |  | 4,071 |  |  | 3,169 |
Total rental income | $ | 11,532 |  |  | $ | 11,451 |  |  | $ | 9,210 |
Future minimum rent payments to be received under operating leases are as follows (in thousands):
Year Ending December 31, | Amount
2024 | $ | 5,160 |
2025 | 4,792 |
2026 | 4,061 |
2027 | 1,300 |
2028 | 857 |
Thereafter | 1,555 |
Total future minimum rent payments | $ | 17,725 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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