v3.25.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS:
 
Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value. The following is a brief description of those three levels:
 
•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
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 March 31, 2025As of December 31, 2024
 Face ValueFair ValueFace ValueFair Value
Level 1:
Investments in equity securitiesN/A$5 N/A$19 
Money market fundsN/A487 N/A601 
Deferred compensation assetsN/A46 N/A47 
Deferred compensation liabilitiesN/A41 N/A46 
Level 2:
Investments in equity securities (a)N/A142 N/A141 
Interest rate swap (b)N/A1 N/A1 
STG (c):
9.750% Second Lien Senior Secured Notes due 2033 (d)
$431 445 $— — 
8.125% First-Out First Lien Secured Notes due 2033 (d)
1,430 1,411 — — 
5.500% Senior Notes due 2030
485 361 485 328 
5.125% Senior Notes due 2027 (d)
170 161 274 249 
4.375% Second-Out First Lien Secured Notes due 2032 (d)
239 149 — — 
4.125% Senior Secured Notes due 2030 (d)
— — 737 546 
4.125% Unsecured Notes due 2030 (d)
5 3 — — 
Term Loan B-2, due September 30, 2026 (d)— — 1,175 1,160 
Term Loan B-3, due April 1, 2028 (d)3 2 714 575 
Term Loan B-4, due April 21, 2029 (d)— — 731 589 
Term Loan B-6, due December 31, 2029 (d)711 592 — — 
Term Loan B-7, due December 31, 2030 (d)731 609 — — 
Debt of variable interest entities (c)6 6 7 7 
Level 3:
Investments in equity securities (e)N/A2 N/A68 
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)The fair value of the interest rate swap was an asset as of both March 31, 2025 and December 31, 2024. 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 and deferred financing cost, which are excluded in the above table, of $59 million and $36 million as of March 31, 2025 and December 31, 2024, respectively.
(d)STG completed a series of financing transactions, including a new money financing and debt recapitalization, during the three months ended March 31, 2025. For further information, see Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.
(e)Amounts as of December 31, 2024 primarily related to warrants and options to acquire common equity in Bally’s. We recorded fair value adjustment losses of $8 million and $1 million for the three months ended March 31, 2025 and 2024, respectively. The fair value of the warrants was primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options was derived utilizing the Black Scholes valuation model. The most significant inputs included the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share. During the three months ended March 31, 2025, all outstanding awards to acquire common equity in Bally’s were converted to warrants and transferred to Level 2.
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 months ended March 31, 2025 and 2024 (in millions):
Options and Warrants
Three Months Ended March 31, 2025
Fair value at December 31, 2024$68 
Transfer to Level 2(58)
Measurement adjustments(8)
Fair value at March 31, 2025$2 
Options and Warrants
Three Months Ended March 31, 2024
Fair value at December 31, 2023$46 
Measurement adjustments(1)
Fair value at March 31, 2024$45