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FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended
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Jun. 30, 2024
Fair Value Disclosures [Abstract] |
Schedule of Carrying Value and Fair Value of Notes and Debentures | The following table sets forth the face value and fair value of our financial assets and liabilities for the periods presented (in millions):
| As of June 30, 2024 |  | As of December 31, 2023
| Face Value |  | Fair Value |  | Face Value |  | Fair Value
Level 1: |  |  |  |  |  |  |
Investments in equity securities | N/A |  | $ | — |  |  | N/A |  | $ | 6 |
Money market funds | N/A |  | $ | 256 |  |  | N/A |  | $ | 588 |
Deferred compensation assets | N/A |  | $ | 47 |  |  | N/A |  | $ | 45 |
Deferred compensation liabilities | N/A |  | $ | 45 |  |  | N/A |  | $ | 44 |
Level 2: |  |  |  |  |  |  |
Investments in equity securities (a) | N/A |  | $ | 94 |  |  | N/A |  | $ | 110 |
Interest rate swap (b) | N/A |  | $ | 7 |  |  | N/A |  | $ | 1 |
STG (c): |  |  |  |  |  |  |
5.500% Senior Notes due 2030 | $ | 485 |  |  | $ | 289 |  |  | $ | 485 |  |  | $ | 362 |
5.125% Senior Notes due 2027 | $ | 274 |  |  | $ | 244 |  |  | $ | 274 |  |  | $ | 248 |
4.125% Senior Secured Notes due 2030 | $ | 737 |  |  | $ | 491 |  |  | $ | 737 |  |  | $ | 521 |
Term Loan B-2, due September 30, 2026 | $ | 1,181 |  |  | $ | 1,099 |  |  | $ | 1,215 |  |  | $ | 1,124 |
Term Loan B-3, due April 1, 2028 | $ | 718 |  |  | $ | 499 |  |  | $ | 722 |  |  | $ | 595 |
Term Loan B-4, due April 21, 2029 | $ | 735 |  |  | $ | 489 |  |  | $ | 739 |  |  | $ | 602 |
Debt of variable interest entities (c) | $ | 7 |  |  | $ | 7 |  |  | $ | 7 |  |  | $ | 7 |
Debt of non-media subsidiaries (c) | $ | 15 |  |  | $ | 15 |  |  | $ | 15 |  |  | $ | 15 |
Level 3: |  |  |  |  |  |  |
Investments in equity securities (d) | N/A |  | $ | 42 |  |  | N/A |  | $ | 46 |
N/A - Not applicable (a)Consists of warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price. (b)We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. T he fair value of the interest rate swap was an asset as of June 30, 2024 and December 31, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing. (c)Amounts are carried in our consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $41 million and $46 million as of June 30, 2024 and December 31, 2023, respectively. (d)Amounts primarily relate to warrants and options to acquire common equity in Bally's. We recorded fair value adjustment losses of $7 million and $8 million during the three and six months ended June 30, 2024 and a loss of $17 million during both the three and six months ended June 30, 2023. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share.
Schedule of Changes in Level 3 Financial Liabilities Measured on Recurring Basis | The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and six months ended June 30, 2024 and 2023 (in millions):
Options and Warrants
Three Months Ended June 30, 2024 |  | Six Months Ended June 30, 2024
Fair value at March 31, 2024 | $ | 45 |  |  | Fair value at December 31, 2023 | $ | 46 |
Measurement adjustments | (3) |  |  | Measurement adjustments | (4) |
Fair value at June 30, 2024 | $ | 42 |  |  | Fair value at June 30, 2024 | $ | 42 |
Options and Warrants
Three Months Ended June 30, 2023 |  | Six Months Ended June 30, 2023
Fair value at March 31, 2023 | $ | 75 |  |  | Fair value at December 31, 2022 | $ | 75 |
Measurement adjustments | (17) |  |  | Measurement adjustments | (17) |
Fair value at June 30, 2023 | $ | 58 |  |  | Fair value at June 30, 2023 | $ | 58 |

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- 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://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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