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Leases
 12 Months Ended
Dec. 31, 2024
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 73 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 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)Classification20242023
Operating lease cost
Operating lease costOperating and SG&A expenses$20,486 $50,118 
Variable lease costOperating and SG&A expenses14,861 12,612 
Short-term lease costOperating and SG&A expenses5,473 8,649 
Total operating lease cost$40,820 $71,379 
Finance lease cost
Amortization of leased assetsDepreciation and amortization$1,562 $475 
Interest on lease liabilitiesInterest expense, net287 89 
Total finance lease cost$1,849 $564 
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
(In thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used under operating lease agreements$22,507 $50,605 
Operating cash flows used under finance lease agreements191 87 
Financing cash flows used under finance lease agreements1,283 527 
Supplemental balance sheet information related to leases was as follows:
December 31,
(In thousands)20242023
Operating leases
Operating lease right-of-use assets, gross (1)
$92,784 $92,481 
Accumulated amortization (1)
(14,317)(13,085)
Operating lease right-of-use assets, net$78,467 $79,396 
Current portion of operating leases (1)
$15,128 $13,745 
Non-current operating leases(1)
78,328 81,325 
Total operating lease liabilities$93,456 $95,070 
Finance leases
Property and equipment, gross$8,954 $5,719 
Accumulated depreciation(4,932)(3,594)
Property and equipment, net$4,022 $2,125 
Current portion of finance leases$1,308 $158 
Non-current finance leases2,335 1,533 
Total finance lease liabilities$3,643 $1,691 
(1)The Company made a short-term lease accounting policy election and does not recognize ROU assets or liabilities for operating leases with terms of 12 months or less.
The following presents additional information related to the Company’s leases as of December 31, 2024:
December 31,
20242023
Weighted average remaining lease term
Operating leases8.9 years7.3 years
Finance leases3.6 years23.5 years
Weighted average discount rate
Operating leases6.4 %6.3 %
Finance leases3.9 %6.8 %
Maturities of Lease Liabilities
As of December 31, 2024, maturities of lease liabilities were as follows:
(In thousands)Operating LeasesFinance LeasesTotal
2025$20,530 $1,420 $21,950 
202618,792 1,420 20,212 
202715,764 283 16,047 
202812,994 182 13,176 
20299,615 182 9,797 
Thereafter47,765 394 48,159 
Total lease payments125,460 3,881 129,341 
Amount of interest(32,004)(238)(32,242)
Present value of lease liabilities$93,456 $3,643 $97,099 
As of December 31, 2024, the Company had two lease agreements related to the Nevada Taverns segment that had not commenced yet.
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 one to ten 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)202420232022
Minimum rental income$8,014 $8,234 $7,380 
Contingent rental income2,810 3,298 4,071 
Total rental income$10,824 $11,532 $11,451 
Future minimum rent payments to be received under operating leases are as follows (in thousands):
Year Ending December 31,Amount
2025$5,250 
20264,265 
20271,504 
20281,000 
2029862 
Thereafter1,361 
Total future minimum rent payments$14,242 
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 73 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 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)Classification20242023
Operating lease cost
Operating lease costOperating and SG&A expenses$20,486 $50,118 
Variable lease costOperating and SG&A expenses14,861 12,612 
Short-term lease costOperating and SG&A expenses5,473 8,649 
Total operating lease cost$40,820 $71,379 
Finance lease cost
Amortization of leased assetsDepreciation and amortization$1,562 $475 
Interest on lease liabilitiesInterest expense, net287 89 
Total finance lease cost$1,849 $564 
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
(In thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used under operating lease agreements$22,507 $50,605 
Operating cash flows used under finance lease agreements191 87 
Financing cash flows used under finance lease agreements1,283 527 
Supplemental balance sheet information related to leases was as follows:
December 31,
(In thousands)20242023
Operating leases
Operating lease right-of-use assets, gross (1)
$92,784 $92,481 
Accumulated amortization (1)
(14,317)(13,085)
Operating lease right-of-use assets, net$78,467 $79,396 
Current portion of operating leases (1)
$15,128 $13,745 
Non-current operating leases(1)
78,328 81,325 
Total operating lease liabilities$93,456 $95,070 
Finance leases
Property and equipment, gross$8,954 $5,719 
Accumulated depreciation(4,932)(3,594)
Property and equipment, net$4,022 $2,125 
Current portion of finance leases$1,308 $158 
Non-current finance leases2,335 1,533 
Total finance lease liabilities$3,643 $1,691 
(1)The Company made a short-term lease accounting policy election and does not recognize ROU assets or liabilities for operating leases with terms of 12 months or less.
The following presents additional information related to the Company’s leases as of December 31, 2024:
December 31,
20242023
Weighted average remaining lease term
Operating leases8.9 years7.3 years
Finance leases3.6 years23.5 years
Weighted average discount rate
Operating leases6.4 %6.3 %
Finance leases3.9 %6.8 %
Maturities of Lease Liabilities
As of December 31, 2024, maturities of lease liabilities were as follows:
(In thousands)Operating LeasesFinance LeasesTotal
2025$20,530 $1,420 $21,950 
202618,792 1,420 20,212 
202715,764 283 16,047 
202812,994 182 13,176 
20299,615 182 9,797 
Thereafter47,765 394 48,159 
Total lease payments125,460 3,881 129,341 
Amount of interest(32,004)(238)(32,242)
Present value of lease liabilities$93,456 $3,643 $97,099 
As of December 31, 2024, the Company had two lease agreements related to the Nevada Taverns segment that had not commenced yet.
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 one to ten 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)202420232022
Minimum rental income$8,014 $8,234 $7,380 
Contingent rental income2,810 3,298 4,071 
Total rental income$10,824 $11,532 $11,451 
Future minimum rent payments to be received under operating leases are as follows (in thousands):
Year Ending December 31,Amount
2025$5,250 
20264,265 
20271,504 
20281,000 
2029862 
Thereafter1,361 
Total future minimum rent payments$14,242