Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of the Group's financial assets, financial liabilities and redeemable non-controlling interests

The following tables set forth the fair value of the

Group’s financial assets

, financial liabilities and redeemable

non-controlling

interests measured at fair value based on the three-tier fair value hierarchy:


	As of March 31, 2024
($ in millions)	Level 1		Level 2		Level 3			Total
Financial assets measured at fair value:
Available for sale – Player deposits – investments	$	143	$	30	$	—		$	173
Equity securities		—		—		7			7
Derivative financial assets		—		19		—			19

Total		143		49		7			199

Financial liabilities measured at fair value:
Derivative financial liabilities		—		155		—			155
Fox Option Liability		—		—		580			580
Contingent consideration		—		—		19			19

Total		—		155		599			754

Redeemable non-controlling interests at fair value	$	—	$	—	$	(1,304	)	$	(1,304	)


	As of December 31, 2023
($ in millions)	Level 1		Level 2		Level 3		Total
Financial assets measured at fair value:
Available for sale – Player deposits – investments	$	33	$	139	$	—	$	172
Equity securities		—		—		9		9

Total		33		139		9		181

Financial liabilities measured at fair value:
Derivative financial liabilities		—		178		—		178
Fox Option Liability		—		—		400		400
Contingent consideration		—		—		20		20

Total		—		178		420		598

Redeemable non-controlling interests at fair value	$	—	$	—	$	1,100	$	1,100
Pokerstars trademark held and used 1	$	—	$	—	$	368	$	368

Total nonrecurring fair value measurement	$	—	$	—	$	368	$	368

In accordance with subtopic

360-10,

Pokerstars trademark held and used with a carrying amount of $1,093 million was written down to its fair value of $368 million, in the fourth quarter of 2023 resulting in an impairment of $725 million, which was included in sales and marketing expenses. The Group utilized the relief from royalty method under the income approach to estimate the fair value. Assumptions inherent in estimating the fair value included revenue forecast, royalty rate of 5.0%, income tax rate of 12.5%, and discount rate of 12.5%. The Group selected the assumptions used in the financial forecasts of cash flows specific to the remaining useful life of the trademark using historical data, supplemented by current and anticipated market conditions and estimated growth rates. Financial forecasts beyond the period covered by the plans were estimated by extrapolating the forecasts based on the plans using a steady growth in line with the long-term average growth for the countries in which the trademark is used. As the fair value measurements were based on significant inputs not observable in the market, they represented Level 3 measurements within the fair value hierarchy.

Schedule of financial assets and liabilities carried at fair value

The movements in respect of the financial assets and liabilities carried at fair value are as follows:


($ in millions)	Contingent consideration			Equity securities			Fox Option liability			Total			Redeemable non- controlling interest at fair value


Balance at December 31, 2023	$	(20	)	$	9		$	(400	)	$	(411	)	$	(1,100	)
Total gains or losses for the period:
Included in earnings		—			(2	)		(184	)		(186	)		—
Included in other comprehensive income		1			—			4			5			—
Attribution of net loss and other comprehensive income:
Net loss attributable to redeemable non-controlling interest		—			—			—			—			1
Other comprehensive income attributable to redeemable non-controlling interest		—			—			—			—			11
Adjustment of redeemable non-controlling interest to redemption at fair value		—			—			—			—			(216	)

Balance at March 31, 2024		(19	)		7			(580	)		(592	)		(1,304	)

Change in unrealized gains or losses for the period included in earnings		—			(2	)		(184	)		(186	)		—

Change in unrealized gains or losses for the period included in other comprehensive income	$	—		$	—		$	4		$	4		$	—


($ in millions)	Contingent consideration			Equity securities		Fox Option liability			Total			Redeemable non- controlling interest at fair value


Balance at December 31, 2022	$	(22	)	$	11	$	(220	)	$	(231	)	$	(781	)
Total gains or losses for the period:
Included in earnings		—			—		(64	)		(64	)		—
Included in other comprehensive income		2			—		(6	)		(4	)		—
Attribution of net loss and other comprehensive income:
Net loss attributable to redeemable non-controlling interest		—			—		—			—			4
Other comprehensive income attributable to redeemable non-controlling interest		—			—		—			—			(17	)
Adjustment of redeemable non-controlling interest to redemption at fair value		—			—		—			—			(125	)

Balance at March 31, 2023		(20	)		11		(290	)		(299	)		(919	)

Change in unrealized gains or losses for the period included in earnings		—			—		(64	)		(64	)		—

Change in unrealized gains or losses for the period included in other comprehensive income	$	—		$	—	$	(6	)	$	(6	)	$	—