— Fair Value Measurements

Our assessment of goodwill and other intangible assets for impairment includes an assessment using various Level 2 (EBITDA multiples and discount rate) and Level 3 (forecasted cash flows) inputs. See Note 9 for more information on the application of the use of fair value to measure goodwill and other intangible assets.

We have not elected the fair value measurement option available under GAAP for any of our assets or liabilities that meet the criteria for this option. The following financial and non-financial assets and liabilities of the Company are measured at fair value on a recurring basis.

Investments Measured at Fair Value on a Recurring Basis

(In millions)	Balance		Level 1		Level 2		Level 3
December 31, 2015
Assets:
Equity securities	$	4	$	4	$	—	$	—
Government bonds	67		—		67		—
Total assets at fair value	$	71	$	4	$	67	$	—

December 31, 2014
Assets:
Equity securities	$	15	$	15	$	—	$	—
Government bonds	70		—		70		—
Total assets at fair value	$	85	$	15	$	70	$	—

Investments primarily consist of equity and debt securities held by our captive insurance entities that are traded in active markets, have readily determined market values and have maturity dates of greater than three months from the date of purchase. The majority of these investments are primarily used as collateral for several escrow and trust agreements with third-party beneficiaries and are recorded in deferred charges and other in our balance sheets while a portion is included in prepayments and other current assets. As of December 31, 2015 and 2014, gross unrealized gains and losses on marketable securities were not material.

Derivative Instruments

As of December 31, 2014, CEOC had eight interest rate swap agreements that were not designated as accounting hedges and had notional amounts totaling $5.8 billion and a total fair value liability of $6 million. These interest rate swaps expired and were settled for $17 million during the first quarter of 2015. We did not renew the swap agreements or enter into any replacement instruments. The derivative settlements under the terms of the interest rate swap agreements were recognized as interest expense and were paid monthly or quarterly prior to their expiration in January 2015. The net periodic cash settlement amount for these derivatives totaled $177 million and $172 million for the years ended December 2014 and 2013, respectively. Interest expense related to the derivatives was $7 million, $17 million, and $34 million for the years ended December 31, 2015, 2014, and 2013, respectively.

For the year ended December 31, 2013, we reclassified $4 million from accumulated other comprehensive loss into net loss on derivatives designated as accounting hedges.

Items Measured at Fair Value on a Non-recurring Basis

As of December 31, 2015, the fair values of our intangible and tangible assets equaled or exceeded their carrying values, and therefore, we had no related assets measured at fair value. As of December 31, 2014, the total of our intangible and tangible assets that were required to be measured at fair value for our year end goodwill impairment and other intangible assets impairment assessment was $848 million, and we recorded impairment charges related to these assets totaling $642 million for the year then ended. Market and income approaches were used to value the intangible and tangible assets. Inputs included an expected range of market values, probability estimated by management that each value could be achieved, expected cash flows, recent comparable transactions, discounted cash flows, discount rate, royalty rate, growth rate, and tax rate.

We classify the items measured at fair value on a non-recurring basis within level 3 in the fair value hierarchy.