XML 62 R42.htm IDEA: XBRL DOCUMENT
v3.20.4

Fair Value Measurements (Tables) | 12 Months Ended
--- | ---
Dec. 31, 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:
| December 31, 2020
(in millions) | Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,853.8 |  |  | $ | 1,853.8 |  |  | $ | 1,853.8 |  |  | $ | — |  |  | $ | — |
Equity securities | $ | 143.1 |  |  | $ | 143.1 |  |  | $ | — |  |  | $ | 143.1 |  |  | $ | — |
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 | $ | 1,600.3 |  |  | $ | 1,609.3 |  |  | $ | 1,609.3 |  |  | $ | — |  |  | $ | — |
5.625% Notes | $ | 399.5 |  |  | $ | 418.0 |  |  | $ | 418.0 |  |  | $ | — |  |  | $ | — |
Convertible Notes | $ | 239.8 |  |  | $ | 1,274.5 |  |  | $ | 1,274.5 |  |  | $ | — |  |  | $ | — |
Other long-term obligations | $ | 73.0 |  |  | $ | 72.8 |  |  | $ | — |  |  | $ | 72.8 |  |  | $ | — |
Other liabilities | $ | 10.1 |  |  | $ | 10.1 |  |  | $ | — |  |  | $ | 2.8 |  |  | $ | 7.3 |
Puts and calls related to certain Barstool Sports shares | $ | 0.3 |  |  | $ | 0.3 |  |  | $ | — |  |  | $ | 0.3 |  |  | $ | — |
| December 31, 2019
(in millions) | Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 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 |
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:
| Other Liabilities
(in millions) | Contingent Purchase Price
Balance as of January 1, 2018 | $ | 22.7 |
Payments | (4.2) |
Included in earnings (1) | 0.5 |
Balance as of December 31, 2018 | 19.0 |
Payments | (8.5) |
Included in earnings (1) | 7.0 |
Balance as of December 31, 2019 | 17.5 |
Payments | (9.1) |
Included in loss (1) | (1.1) |
Balance as of December 31, 2020 | $ | 7.3 |
(1)The expense is included in “General and administrative” within our Consolidated Statements of Operations and Comprehensive Income (Loss).
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, 2020 and 2019:
(in millions) | Valuation Date |  | Valuation Technique |  | Level 1 |  | Level 2 |  | Level 3 |  | Total Balance |  | Total Reduction in Fair Value Recorded
Property and equipment (1) | 12/31/2020 |  | Discounted cash flow |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (7.3) |
Goodwill (2) | 3/31/2020 |  | Discounted cash flow and market approach |  | $ | — |  |  | $ | — |  |  | $ | 160.5 |  |  | $ | 160.5 |  |  | $ | (113.0) |
Gaming licenses (2) | 3/31/2020 |  | Discounted cash flow |  | $ | — |  |  | $ | — |  |  | $ | 568.0 |  |  | $ | 568.0 |  |  | $ | (437.0) |
Trademarks (2) | 3/31/2020 |  | Discounted cash flow |  | $ | — |  |  | $ | — |  |  | $ | 216.5 |  |  | $ | 216.5 |  |  | $ | (61.5) |
Goodwill | 10/1/2019 |  | Discounted cash flow and market approach |  | $ | — |  |  | $ | — |  |  | $ | 161.1 |  |  | $ | 161.1 |  |  | $ | (88.0) |
Gaming licenses | 10/1/2019 |  | Discounted cash flow |  | $ | — |  |  | $ | — |  |  | $ | 290.0 |  |  | $ | 290.0 |  |  | $ | (62.6) |
Trademarks | 10/1/2019 |  | Discounted cash flow |  | $ | — |  |  | $ | — |  |  | $ | 87.5 |  |  | $ | 87.5 |  |  | $ | (20.0) |
(1)The fair value, which was concluded to be zero, of our property and equipment associated with Tropicana was determined using Level 3 inputs. See Note 8, “Property and Equipment,” for more information. (2)During the first quarter of 2020, we identified an indicator of impairment on our goodwill and other intangible assets due to the COVID-19 pandemic. 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, 2020:
| Valuation Technique |  | Unobservable Input |  | Discount Rate
Contingent purchase price - Plainridge Park Casino | Discounted cash flow |  | Discount rate |  | 5.05%
(in millions) | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range or Amount
As of March 31, 2020 |  |  |  |  |  |  |
Gaming licenses | $ | 568.0 |  |  | Discounted cash flow |  | Discount rate |  | 13.25% - 14.00%
|  |  |  |  | Long-term revenue growth rate |  | 2.0 | %
Trademarks | $ | 216.5 |  |  | Discounted cash flow |  | Discount rate |  | 13.25% - 14.00%
|  |  |  |  | Long-term revenue growth rate |  | 2.0 | %
|  |  |  |  | Pretax royalty rate |  | 1.0% - 2.0%

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=121572278&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 + Details
Name: | us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration