FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Carrying Value And Fair Value Of Notes And Debentures

The following table sets forth the carrying value and fair value of our financial assets and liabilities as of December 31, 2021 and 2020 (in millions):


	2021				2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
Level 1:
Investments in equity securities	$	5	$	5	$	68	$	68
STG:
Money market funds	265		265		448		448
Deferred compensation assets	48		48		42		42
Deferred compensation liabilities	38		38		36		36
DSG:
Money market funds	101		101		292		292

Level 2:
Investments in equity securities (a)	114		114		—		—
STG (b):
5.875% Senior Unsecured Notes due 2026	348		357		348		358

5.500% Senior Unsecured Notes due 2030	500		489		500		520
5.125% Senior Unsecured Notes due 2027	400		391		400		408
4.125% Senior Secured Notes due 2030	750		712		750		770
Term Loan B	379		373		1,119		1,107
Term Loan B-2	1,271		1,239		1,284		1,264
Term Loan B-3 (c)	736		722		—		—

DSG (b):
12.750% Senior Secured Notes due 2026	31		17		31		28
6.625% Senior Unsecured Notes due 2027	1,744		490		1,744		1,056
5.375% Senior Secured Notes due 2026	3,050		1,525		3,050		2,483
Term Loan	3,226		1,484		3,259		2,884
Accounts Receivable Securitization Facility	—		—		177		177
Debt of variable interest entities (b)	9		9		17		17
Debt of non-media subsidiaries (b)	17		17		17		17

Level 3:
Investments in equity securities (d)	282		282		332		332

(a)Consists of unrestricted warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price.

(b)Amounts are carried in our consolidated balance sheets net of debt discount, premium, and deferred financing costs, which are excluded in the above table, of $158 million and $183 million as of December 31, 2021 and 2020, respectively.

(c)On April 1, 2021, STG amended the STG Bank Credit Agreement to raise term loans in an aggregate principle amount of $740 million, the net proceeds of which were used to refinance a portion of the STG Term Loan B-1 maturing in January 2024. Note 7. Notes Payable and Commercial Bank Financing for additional information.

(d)On November 18, 2020, we entered into a commercial agreement with Bally's and received warrants and options to acquire common equity in the business. During the years ended December 31, 2021 and 2020 we recorded a fair value adjustment loss of $50 million and gain of $133 million, respectively, related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity adjusted for a 16% and 25% discount for lack of marketability (DLOM) as of December 31, 2021 and 2020, respectively. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock, the exercise price of the options, which range from $30 to $45 per share, and a DLOM of 16% and 25% as of December 31, 2021 and 2020, respectively. There are certain restrictions surrounding the sale and ownership of common stock through the second anniversary of the agreement. The Company is also precluded from owning more than 4.9% of the outstanding common shares of Bally's, inclusive of shares obtained through the exercise of the warrants and options described above. See Note 6. Other Assets for further discussion.

Schedule of Changes In Level 3 Financial Liabilities Measured on Recurring Basis

The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy (in millions):


	Options and Warrants
Fair value at December 31, 2019	$	—
Acquisition	199

Measurement adjustments	133
Fair value at December 31, 2020	$	332


Measurement adjustments	(50)
Fair value at December 31, 2021	$	282