XML 62 R44.htm IDEA: XBRL DOCUMENT

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	1,624.0	$	1,624.0	$	1,624.0	$	—	$	—
Equity securities	$	17.1	$	17.1	$	—	$	17.1	$	—
Held-to-maturity securities	$	6.7	$	6.7	$	—	$	6.7	$	—
Promissory notes	$	7.9	$	7.9	$	—	$	7.9	$	—
Financial liabilities:
Long-term debt
Amended Credit Facilities	$	1,503.6	$	1,514.7	$	1,514.7	$	—	$	—
5.625% Notes	$	399.7	$	371.0	$	371.0	$	—	$	—
4.125% Notes	$	393.8	$	327.0	$	327.0	$	—	$	—
Convertible Notes	$	324.3	$	550.8	$	550.8	$	—	$	—
Other long-term obligations	$	156.1	$	154.4	$	—	$	36.4	$	118.0
Other liabilities	$	9.9	$	9.6	$	—	$	2.4	$	7.2
Puts and calls related to certain Barstool shares	$	0.4	$	0.4	$	—	$	0.4	$	—


	December 31, 2021
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	1,863.9	$	1,863.9	$	1,863.9	$	—	$	—
Equity securities	$	84.3	$	84.3	$	—	$	84.3	$	—
Held-to-maturity securities	$	6.7	$	6.7	$	—	$	6.7	$	—
Promissory notes	$	15.1	$	15.1	$	—	$	15.1	$	—
Puts and calls related to certain Barstool shares	$	1.9	$	1.9	$	—	$	1.9	$	—
Financial liabilities:
Long-term debt
Senior Secured Credit Facilities	$	1,544.5	$	1,559.6	$	1,559.6	$	—	$	—
5.625% Notes	$	399.6	$	411.5	$	411.5	$	—	$	—
4.125% Notes	$	392.9	$	389.3	$	389.5	$	—	$	—
Convertible Notes	$	253.5	$	780.0	$	780.0	$	—	$	—
Other long-term obligations	$	146.3	$	144.3	$	—	$	53.9	$	90.4
Other liabilities	$	13.3	$	13.2	$	—	$	2.7	$	10.5

Summary 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:


(in millions)	Other Liabilities
Balance as of January 1, 2020	$	17.5

Payments	(9.1)
Included in loss (1)	(1.1)
Balance as of December 31, 2020	7.3
Additions	75.5
Interest	17.9
Payments	(1.7)
Included in earnings (1)	1.9
Balance as of December 31, 2021	100.9

Interest	27.6
Payments	(2.7)
Included in earnings (1)	(0.6)
Balance as of December 31, 2022	$	125.2

(1)The expense is included in “General and administrative” within our Consolidated Statements 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 as of December 31, 2022, which pertained to our Northeast segment. There were no impairment charges to goodwill, gaming licenses, and trademarks for the year ended December 31, 2021.


(in millions)	Valuation Date	Valuation Technique	Level 1		Level 2		Level 3		Total Balance		Total Reduction in Fair Value Recorded
Gaming licenses	10/1/2022	Discounted cash flow	$	—	$	—	$	74.0	$	74.0	$	13.6
Goodwill (1)	9/30/2022	Discounted cash flow and market approach	$	—	$	—	$	30.0	$	30.0	$	37.4
Gaming licenses (1)	9/30/2022	Discounted cash flow	$	—	$	—	$	101.0	$	101.0	$	65.4

(1)During the third quarter of 2022, we identified an indicator of impairment on our goodwill and other intangible assets. See Note 9, “Goodwill and Other Intangible Assets,” for more information.

Summary of significant unobservable inputs used in fair value calculations

The following table summarizes the significant unobservable inputs used in calculating fair value for our Level 3 liabilities on a recurring basis as of December 31, 2022:

Valuation Technique

Unobservable Input

Discount Rate

Other long-term obligation

Discounted cash flow

Discount rate

27.0%

Contingent purchase price - Plainridge Park Casino

Discounted cash flow

Discount rate

7.8%

As discussed in Note 9, “Goodwill and Other Intangible Assets,” we recorded impairments on goodwill and our gaming licenses, which are indefinite-lived intangible assets, at the Hollywood Casino at Greektown reporting unit as a result of the third quarter of 2022 interim assessment for impairment. Our annual assessment for impairment as of October 1, 2022, resulted in an additional impairment charge on the gaming license at PNRC. 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 Value		Valuation Technique	Unobservable Input	Range or Amount
As of December 31, 2022
Gaming licenses	$	74.0	Discounted cash flow	Discount rate	13.0	%
				Long-term revenue growth rate	2.0	%
As of September 30, 2022
Gaming licenses	$	101.0	Discounted cash flow	Discount rate	13.0	%
				Long-term revenue growth rate	2.0	%