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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of carrying amounts and estimated fair values by input level

The carrying amounts and estimated fair values by input level of the Company’s financial instruments were as follows:



	December 31, 2018
(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	479,598	$	479,598	$	479,598	$	—	$	—
Held-to-maturity securities	$	7,466	$	7,879	$	—	$	7,879	$	—
Promissory notes	$	16,853	$	17,415	$	—	$	17,415	$	—
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	1,907,932	$	1,886,333	$	1,886,333	$	—	$	—
5.625% Notes	$	399,332	$	360,000	$	360,000	$	—	$	—
Other long-term obligations	$	104,583	$	96,338	$	—	$	96,338	$	—
Other liabilities	$	21,863	$	21,857	$	—	$	2,815	$	19,042



	December 31, 2017
(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	277,953	$	277,953	$	277,953	$	—	$	—
Loan to the JIVDC	$	20,900	$	16,533	$	—	$	—	$	16,533
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	730,787	$	760,456	$	760,456	$	—	$	—
5.625% Notes	$	399,249	$	412,000	$	412,000	$	—	$	—
Other long-term obligations	$	119,310	$	113,460	$	—	$	113,460	$	—
Other liabilities	$	22,696	$	22,696	$	—	$	—	$	22,696

Summary of the changes in fair value of Level 3 liabilities

The following table summarizes the changes in fair value of the Company’s Level 3 liabilities measured on a recurring basis:



	Other Liabilities
(in thousands)	Contingent Purchase Price
Balance at January 1, 2016	$	13,815
Additions	34,945
Payments	(1,793		)
Included in earnings⁽¹⁾	1,277
Balance at December 31, 2016	48,244
Additions	905
Payments	(19,613		)
Included in earnings⁽¹⁾	(6,840		)
Balance at December 31, 2017	22,696
Payments	(4,108		)
Included in earnings⁽¹⁾	454
Balance at December 31, 2018	$	19,042

(1)

The charge (benefit) is included within “General and administrative” within our Consolidated Statement of Operations.

Schedule of the assets measured at fair value on a non-recurring basis

The following table sets forth the assets measured at fair value on a non-recurring basis during the years ended December 31, 2018 and 2017:



(in thousands)	Valuation Date	Valuation Technique	Level 1		Level 2		Level 3		Total Balance		Total Reduction in Fair Value Recorded
Goodwill⁽¹⁾	9/30/2017	Discounted Cash Flow	$	—	$	—	$	598	$	598	$	(18,026	)
Property and equipment⁽²⁾	12/31/2018	Cost and Market Approach	$	—	$	—	$	—	$	—	$	(34,288	)


(1)	See Note 3, “Summary of Significant Accounting Policies” for a description of the inputs and the information used to develop the inputs in calculating the fair value measurements of goodwill and indefinite-lived intangible assets.

(2)

The fair value, which was concluded to be zero, of our property and equipment associated with Resorts Casino Tunica was determined using Level 2 inputs. See Note 7, “Property and Equipment” for more information.

Summary of significant unobservable inputs used in calculating Level 3 assets and liabilities

The following table summarizes the significant unobservable inputs used in calculating fair value for our Level 3 liabilities as of December 31, 2018:



	Valuation Technique	Unobservable Input	Discount Rate
Recurring basis:
Contingent purchase price - Plainridge Park Casino	Discounted cash flow	Discount rate	7.53%