XML 46 R35.htm IDEA: XBRL DOCUMENT v3.20.2
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
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:
June 30, 2020
(in millions)Carrying AmountFair ValueLevel 1Level 2Level 3
Financial assets:
Cash and cash equivalents$1,244.3  $1,244.3  $1,244.3  $—  $—  
Equity securities$48.3  $48.3  $—  $48.3  $—  
Held-to-maturity securities$6.7  $6.7  $—  $6.7  $—  
Promissory notes$15.1  $15.3  $—  $15.3  $—  
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities$2,403.1  $2,345.4  $2,345.4  $—  $—  
5.625% Notes
$399.4  $375.3  $375.3  $—  $—  
Convertible Notes$233.6  $497.1  $497.1  $—  $—  
Other long-term obligations$80.8  $81.1  $—  $81.1  $—  
Other liabilities$10.6  $10.6  $—  $2.8  $7.8  
December 31, 2019
(in millions)Carrying AmountFair ValueLevel 1Level 2Level 3
Financial assets:
Cash and cash equivalents$437.4  $437.4  $437.4  $—  $—  
Equity securities$40.5  $40.5  $—  $40.5  $—  
Held-to-maturity securities$6.7  $6.7  $—  $6.7  $—  
Promissory notes$15.1  $15.1  $—  $15.1  $—  
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities$1,896.5  $1,930.6  $1,930.6  $—  $—  
5.625% Notes
$399.4  $426.0  $426.0  $—  $—  
Other long-term obligations$89.2  $89.7  $—  $89.7  $—  
Other liabilities$20.3  $20.3  $—  $2.8  $17.5  
Schedule of the Changes in Fair Value of Level 3 Liabilities
The following table summarizes the changes in fair value of our Level 3 liabilities measured on a recurring basis:
 Other Liabilities
(in millions)Contingent Purchase Price
Balance as of January 1, 2020$17.5  
Payments(8.3) 
Included in loss (1)
(1.4) 
Balance as of June 30, 2020$7.8  
(1)The reduction in expense is included in “General and administrative” within our unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).
Schedule of Assets Measured at Fair Value on a Nonrecurring
The following table sets forth the assets measured at fair value on a non-recurring basis during the six months ended June 30, 2020:
(in millions)Valuation DateValuation TechniqueLevel 1Level 2Level 3Total BalanceTotal Reduction in Fair Value
Recorded
Goodwill3/31/2020Discounted cash flow and market approach$—  $—  $160.5  $160.5  $(113.0) 
Gaming licenses3/31/2020Discounted cash flow$—  $—  $568.0  $568.0  $(437.0) 
Trademarks3/31/2020Discounted cash flow$—  $—  $216.5  $216.5  $(61.5) 
Schedule 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 on a recurring basis as of June 30, 2020:
 Valuation TechniqueUnobservable InputDiscount Rate
Contingent purchase price - Plainridge Park CasinoDiscounted cash flowDiscount rate8.09%
The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements of other indefinite-lived intangible assets as of the valuation date below:
(in millions)Fair ValueValuation TechniqueUnobservable InputRange or Amount
As of March 31, 2020
Gaming licenses$568.0  Discounted cash flowDiscount rate
13.25% - 14.0%
Long-term revenue growth rate2.0 %
Trademarks$216.5  Discounted cash flowDiscount rate
13.25% - 14.0%
Long-term revenue growth rate2.0 %
Pretax royalty rate
1.0% - 2.0%