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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

X

- References

No definition available.

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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

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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

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