Fair Value Measurements

3 Months Ended

Mar. 31, 2016

Investments

(In millions)	Balance		Level 1		Level 2		Level 3
March 31, 2016
Assets:
Equity securities	$	3	$	3	$	—	$	—
Government bonds	49		—		49		—
Total assets at fair value	$	52	$	3	$	49	$	—

December 31, 2015
Assets:
Equity securities	$	4	$	4	$	—	$	—
Government bonds	67		—		67		—
Total assets at fair value	$	71	$	4	$	67	$	—

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 March 31, 2016 and December 31, 2015, gross unrealized gains and losses on marketable securities were not material.

Derivative Instruments

CEOC had eight interest rate swap agreements that expired, which we settled for $17 million during the first quarter of 2015. Interest expense related to the derivatives was $7 million in the first quarter of 2015. We have not entered into any additional derivative transactions since these swaps expired.