Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

25. Leases

The Company as Lessee

The Company is party to leases with third parties with respect to various real estate and vehicles. Real estate leases typically include a lease (of the property) and a non-lease (provision of services) component which are accounted for separately. Where lease costs are variable due to future rent reviews, these are treated as part of the lease asset and lease liabilities as they are considered to qualify as variable lease costs which are subject to an index or rate. These costs are included at the amount prior to any reviews, as it is not permitted to estimate future rent reviews. Where real estate leases contain an option to terminate, any period beyond the option date is only included as part of the lease term if the Company is reasonably certain not to exercise the option. Vehicle leases typically contain a lease (of the vehicle) and a non-lease (provision of services) component which are accounted for separately.

The leases have remaining terms of 1 to 20 years.

At December 31, 2019 the Company is party to an agreement that grants it the right to enter into a formal 12.5 year lease on a property once practical completion of certain works at the property has been achieved. Related to this, the Company is paying for fit out works at the property and has recognized an asset in the course of construction as part of Property and Equipment amounting to $0.8 million.

The components of lease expense were as follows:

	Year Ended December 31,		Three Months Ended December 31,		Year Ended September 30,
	2019		2018		2018
	(in millions)
Operating lease costs	$	2.1	$	0.6	$	1.6
Short-term lease costs		0.9		—		—
Variable lease costs		0.7		—		—
Total	$	3.7	$	0.6	$	1.6

Weighted average remaining lease term	22.4 months
Weighted average discount rate		8.3	%

Future minimum lease payments as of December 31, 2019 were as follows:

Year ending December 31, (in millions)
2020	$	3.8
2021		2.7
2022		1.4
2023		0.8
2024		0.6
Thereafter		1.1
Total future minimum lease payments		10.4
Less: imputed interest		(1.6	)
Total	$	8.8

The Company as Lessor

The Company is party to leases with third parties with respect to various gaming machines. Gaming machine leases typically include a lease (of the machine) and a non-lease (provision of software services) component.

The leases have remaining terms of 1 to 3 years.

As of December 31, 2019, assets recorded under operating leases were $4.1 million and accumulated depreciation associated with finance leases was $0.3 million. Depreciation expense for the year ended December 31, 2019 amounted to $0.3 million.

The components of lease income were as follows:

	Year Ended December 31,		Three Months Ended December 31,	Year Ended September 30,
	2019		2018	2018
	(in millions)
Interest receivable from sales type leases	$	0.1	$	$
Operating lease income		0.9
Variable income from sales type leases		0.3
Total	$	1.3	$	$

Future minimum sales type lease receivables as of December 31, 2019 were as follows:

Year ending December 31, (in millions)
2020	$	1.5
2021		0.6
2022		0.4
2023		0.1
Total future minimum lease receivables		2.6
Less: imputed interest		(0.1	)
Total	$	2.5

Future minimum operating lease receivables as of December 31, 2019 were as follows:

Year ending December 31, (in millions)
2020	$	3.9
2021		3.7
2022		1.4
Total future minimum lease receivables	$	9.0