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Fair Value Measurements
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Items Measured at Fair Value on a Recurring Basis
The following table sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, in the Balance Sheets:
September 30, 2022
(In millions)Level 1Level 2Level 3Total
Assets:
Marketable securities$2 $2 $— $4 
Derivative instruments - interest rate swaps— 3 — 3 
Total assets at fair value$2 $5 $— $7 
December 31, 2021
(In millions)Level 1Level 2Level 3Total
Assets:
Restricted cash$1 $1 $— $2 
Marketable securities69 9 — 78 
Derivative instruments - FX forward— 1 — 1 
Total assets at fair value$70 $11 $— $81 
Liabilities:
Derivative instruments - interest rate swaps$— $28 $— $28 
Derivative instruments - FX forward— 16 — 16 
Total liabilities at fair value$— $44 $— $44 
Restricted Cash
The estimated fair values of the Company’s restricted cash are based upon quoted prices available in active markets (Level 1), or quoted prices for similar assets in active and inactive markets (Level 2) and represent the amounts the Company would expect to receive if the Company sold the restricted cash. Restricted cash classified as Level 1 includes cash equivalents held in short-term certificate of deposit accounts or money market type funds. Restricted cash that is not subject to remeasurement on a recurring basis is not included in the table above.
Marketable Securities 
Marketable securities consist primarily of trading securities held by the Company’s captive insurance subsidiary and investments acquired in the William Hill Acquisition. See Note 4. These investments also include collateral for several escrow and trust agreements with third-party beneficiaries. The estimated fair values of the Company’s marketable securities are determined on an individual asset basis based upon quoted prices of identical assets available in active markets (Level 1), quoted prices of identical assets in inactive markets, or quoted prices for similar assets in active and inactive markets (Level 2), and represent the amounts the Company would expect to receive if the Company sold these marketable securities.
Derivative Instruments
The Company does not purchase or hold any derivative financial instruments for trading purposes.
Forward contracts
The Company entered into several foreign exchange forward contracts with third parties to hedge the risk of fluctuations in the foreign exchange rates between USD and GBP. During the three months ended September 30, 2021, the Company recorded a total gain of $16 million, and for the nine months ended September 30, 2022 and 2021 the Company recorded total gains of $76 million and $26 million, respectively, related to forward contracts, which have been recorded in the Other income (loss) on the Statements of Operations. All forward contracts have been settled as of July 1, 2022.
Interest Rate Swap Derivatives
We assumed Former Caesars’ interest rate swaps to manage the mix of assumed debt between fixed and variable rate instruments. As of September 30, 2022, we have four interest rate swap agreements to fix the interest rate on $1.3 billion of variable rate debt related to the Caesars Resort Collection (“CRC”) Credit Agreement. The interest rate swaps are designated as cash flow hedging instruments. The difference to be paid or received under the terms of the interest rate swap agreements is accrued as interest rates change and recognized as an adjustment to interest expense at settlement. Changes in the variable interest rates to be received pursuant to the terms of the interest rate swap agreements will have a corresponding effect on future cash flows.
The major terms of the interest rate swap agreements as of September 30, 2022 are as follows:
Effective Date
Notional Amount
(In millions)
Fixed Rate PaidVariable Rate Received as of
September 30, 2022		Maturity Date
1/1/20192502.274%2.5239%12/31/2022
1/1/20192002.828%2.5239%12/31/2022
1/1/20192002.828%2.5239%12/31/2022
1/1/20196002.739%2.5239%12/31/2022
Valuation Methodology
The estimated fair values of our interest rate swap derivative instruments are derived from market prices obtained from dealer quotes for similar, but not identical, assets or liabilities. Such quotes represent the estimated amounts we would receive or pay to terminate the contracts. The interest rate swap derivative instruments are included in either Other assets, net or Other long-term liabilities on our Balance Sheets. Our derivatives are recorded at their fair values, adjusted for the credit rating of the counterparty if the derivative is an asset, or adjusted for the credit rating of the Company if the derivative is a liability. None of our derivative instruments are offset and all were classified as Level 2.
Financial Statement Effect
The effect of derivative instruments designated as hedging instruments on the Balance Sheets for amounts transferred into Accumulated other comprehensive income (loss) (“AOCI”) before tax was a gain of $4 million and $15 million during the three months ended September 30, 2022 and 2021, respectively, and a gain of $31 million and $44 million during the nine months ended September 30, 2022 and 2021, respectively. AOCI reclassified to Interest expense on the Statements of Operations was $2 million and $15 million for the three months ended September 30, 2022 and 2021, respectively, and $16 million and $44 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, the interest rate swaps derivative asset of $3 million was recorded in Other assets, net, and as of December 31, 2021, the interest rate swaps derivative liability of $28 million was recorded in Other long-term liabilities. Net settlement of these interest rate swaps results in the reclassification of deferred gains and losses within AOCI to be reclassified to the income statement as a component of interest expense as settlements occur. The estimated amount of existing gains or losses that are reported in AOCI at the reporting date that are expected to be reclassified into earnings within the next 12 months is $3 million.
Accumulated Other Comprehensive Income
The changes in AOCI by component, net of tax, for the periods through September 30, 2022 and 2021 are shown below.
(In millions)Unrealized Net Gains on Derivative InstrumentsForeign Currency Translation Adjustments OtherTotal
Balances as of December 31, 2020
$26 $8 $— $34 
Other comprehensive loss before reclassifications(2)— (1)(3)
Amounts reclassified from accumulated other comprehensive income14 — — 14 
Total other comprehensive income (loss), net of tax12 — (1)11 
Balances as of March 31, 2021
$38 $8 $(1)$45 
Other comprehensive income (loss) before reclassifications(5)(11)3 (13)
Amounts reclassified from accumulated other comprehensive income15 — — 15 
Total other comprehensive income (loss), net of tax10 (11)3 2 
Balances as of June 30, 2021$48 $(3)$2 $47 
Other comprehensive loss before reclassifications(4)(33)(3)(40)
Amounts reclassified from accumulated other comprehensive income15 — — 15 
Total other comprehensive income (loss), net of tax11 (33)(3)(25)
Balances as of September 30, 2021
$59 $(36)$(1)$22 
Balances as of December 31, 2021
$73 $(36)$(1)$36 
Other comprehensive income (loss) before reclassifications5 (33)— (28)
Amounts reclassified from accumulated other comprehensive income8 — — 8 
Total other comprehensive income (loss), net of tax13 (33)— (20)
Balances as of March 31, 2022
$86 $(69)$(1)$16 
Other comprehensive income (loss) before reclassifications1 (44)1 (42)
Amounts reclassified from accumulated other comprehensive income6 — — 6 
Total other comprehensive income (loss), net of tax7 (44)1 (36)
Balances as of June 30, 2022$93 $(113)$— $(20)
Other comprehensive income before reclassifications1 110 — 111 
Amounts reclassified from accumulated other comprehensive income2 — — 2 
Total other comprehensive income, net of tax3 110 — 113 
Balances as of September 30, 2022
$96 $(3)$— $93