Company: ACEL
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001698991-25-000011
Chunk: 86

Company: Accel Entertainment, Inc.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 86
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 provides a roll-forward of the fair value of recurring Level 3 fair value measurements for liabilities for the years ended December 31, (in thousands):20242023Liabilities:Contingent consideration:Beginning of year balance$5,484 $9,543 Issuance of contingent consideration in connection with acquisitions2,449 262 Payment of contingent consideration(1,347)(4,828)Fair value adjustments7,342 507 Ending balance$13,928 $5,484 There were no transfers in or out of Level 3 assets or liabilities for the periods presented.

F-34

Table of ContentsAccel Entertainment, Inc. and SubsidiariesNotes to Consolidated Financial Statements — (Continued)

Note 13. Leases

The Company's lease portfolio has both operating and finance leases but is primarily comprised of operating leases for buildings and vehicles. The Company's leases have remaining lease terms that range from less than 1 to 13 years, some of which also include options to extend or terminate the lease. Most leases contain both fixed and variable payments. Variable costs consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. Lease expense for the years ended December 31 included within general and administrative expenses in the consolidated statements of operations and comprehensive income is follows (in thousands):202420232022Operating lease costsShort-term lease expense$667 $789 $600 Operating lease expense3,284 2,875 1,586 Variable lease expense150 316 368 Total operating lease expense$4,101 $3,980 $2,554 Total expense related to finance leases was $0.3 million and less than $0.1 million for the years ended December 31, 2024 and 2023, respectively. There were no finance leases for the year ended December 31, 2022.Amounts recognized in the consolidated balance sheets related to the Company's lease portfolio as of December 31 are as follows (in thousands):Lease componentClassification20242023Operating lease ROU assetOther assets$8,526 $7,862 Finance lease ROU assetOther assets1,115 1,388 Current operating lease liabilityAccounts payable and other accrued expenses2,721 2,269 Current finance lease liabilityAccounts payable and other accrued expenses245 221