Company: ACEL
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001698991-25-000023
Chunk: 14

Company: Accel Entertainment, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 1
Chunk 14
---
in thousands):March 31,2025December 31,2024Gaming terminals, software and equipment$429,700 $415,003 Amusement, ATM and other equipment29,203 29,174 Office equipment and furniture4,440 4,281 Computer equipment and software23,282 23,136 Leasehold improvements10,315 10,151 Vehicles22,936 22,974 Buildings and improvements30,430 30,105 Land7,718 7,718 Construction in progress13,653 4,453 Total property and equipment571,677 546,995 Less accumulated depreciation and amortization(249,875)(238,998)Total property and equipment, net$321,802 $307,997 Depreciation and amortization of property and equipment was $12.3 million and $10.4 million for the three months ended March 31, 2025 and 2024, respectively.

Note 6. Route and Customer Acquisition Costs

The Company enters into contracts with third parties and its gaming locations to install and operate gaming terminals. Payments are due when gaming operations commence and then on a periodic basis for a specified period of time thereafter. Gross payments due, based on the number of live locations, were approximately $11.6 million and $11.2 million as of March 31, 2025 and December 31, 2024, respectively. Payments are due over varying terms of the individual agreements and are discounted at the Company’s incremental borrowing rate associated with its long-term debt at the time the contract is acquired. The net present value of payments due was $9.7 million and $9.4 million as of March 31, 2025 and December 31, 2024, respectively, of which approximately $2.2 million was included in current liabilities in the accompanying condensed consolidated balance sheets as of 

9

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

both March 31, 2025 and December 31, 2024, respectively. The route and customer acquisition cost asset was comprised of upfront payments made on the contracts of $22.7 million and $22.3 million as of March 31, 2025 and December 31, 2024, respectively. The Company has upfront payments of commissions paid to the third parties for the acquisition of