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v3.22.2.2

Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2022
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:
| September 30, 2022
(in millions) | Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,728.4 |  |  | $ | 1,728.4 |  |  | $ | 1,728.4 |  |  | $ | — |  |  | $ | — |
Equity securities | $ | 20.6 |  |  | $ | 20.6 |  |  | $ | — |  |  | $ | 20.6 |  |  | $ | — |
Held-to-maturity securities | $ | 6.7 |  |  | $ | 6.7 |  |  | $ | — |  |  | $ | 6.7 |  |  | $ | — |
Promissory notes | $ | 7.9 |  |  | $ | 7.9 |  |  | $ | — |  |  | $ | 7.9 |  |  | $ | — |
Financial liabilities: |  |  |  |  |  |  |  |  |
Long-term debt |  |  |  |  |  |  |  |  |
Senior Secured Credit Facilities | $ | 1,511.7 |  |  | $ | 1,491.1 |  |  | $ | 1,491.1 |  |  | $ | — |  |  | $ | — |
5.625% Notes | $ | 399.6 |  |  | $ | 353.6 |  |  | $ | 353.6 |  |  | $ | — |  |  | $ | — |
4.125% Notes | $ | 393.6 |  |  | $ | 306.6 |  |  | $ | 306.6 |  |  | $ | — |  |  | $ | — |
Convertible Notes | $ | 323.9 |  |  | $ | 457.8 |  |  | $ | 457.8 |  |  | $ | — |  |  | $ | — |
Other long-term obligations | $ | 157.2 |  |  | $ | 155.4 |  |  | $ | — |  |  | $ | 45.0 |  |  | $ | 110.4 |
Other liabilities | $ | 9.7 |  |  | $ | 9.4 |  |  | $ | — |  |  | $ | 2.5 |  |  | $ | 6.9 |
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 |  |  | $ | 389.5 |  |  | $ | 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 |
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:
(in millions) | Other Liabilities
Balance as of January 1, 2022 | $ | 100.9 |
Interest | 20.0 |
Payment installments | (2.7) |
Included in earnings (1) | (0.9) |
Balance as of September 30, 2022 | $ | 117.3 |
(1)The expense is included in “General and administrative” within our unaudited Consolidated Statements of Operations.
Schedule of the Changes in Fair Value of Assets Measured on Non Recurring Basis | The following table sets forth the assets measured at fair value on a non-recurring basis as of September 30, 2022, which were all at the Hollywood Casino at Greektown reporting unit:
(in millions) | Valuation Date |  | Valuation Technique |  | Level 1 |  | Level 2 |  | Level 3 |  | Total Balance |  | Total Reduction in Fair Value Recorded
Goodwill | 9/30/2022 |  | Discounted cash flow and market approach |  | $ | — |  |  | $ | — |  |  | $ | 199.2 |  |  | $ | 199.2 |  |  | $ | 37.4 |
Gaming licenses | 9/30/2022 |  | Discounted cash flow |  | $ | — |  |  | $ | — |  |  | $ | 101.1 |  |  | $ | 101.1 |  |  | $ | 65.4 |
Trademarks | 9/30/2022 |  | Discounted cash flow |  | $ | — |  |  | $ | — |  |  | $ | 42.7 |  |  | $ | 42.7 |  |  | $ | — |
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 September 30, 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 |  | 8.9%
As discussed in Note 7, “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. 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 September 30, 2022 |  |  |  |  |  |  |
Goodwill | $ | 199.2 |  |  | Discounted cash flow |  | Discount rate |  | 12.0 | %
|  |  |  |  | Long-term revenue growth rate |  | 2.0 | %
Gaming licenses | $ | 101.1 |  |  | Discounted cash flow |  | Discount rate |  | 13.0 | %
|  |  |  |  | Long-term revenue growth rate |  | 2.0 | %

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