Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Items Measured at Fair Value on a Recurring Basis



(In millions)	Balance		Level 1		Level 2		Level 3
December 31, 2018
Assets
Government bonds	$	15	$	—	$	15	$	—
Derivative instruments - interest rate swaps	6		—		6		—
Total assets at fair value	$	21	$	—	$	21	$	—
Liabilities
Derivative instruments - interest rate swaps	$	22	$	—	$	22	$	—
Derivative instruments - CEC Convertible Notes	324		—		324		—
Disputed claims liability	45		—		45		—
Total liabilities at fair value	$	391	$	—	$	391	$	—

December 31, 2017
Assets
Equity securities	$	8	$	8	$	—	$	—
Government bonds	25		—		25		—
Total assets at fair value	$	33	$	8	$	25	$	—
Liabilities
Derivative instruments - CEC Convertible Notes	$	1,016	$	—	$	—	$	1,016
Disputed claims liability	112		—		—		112
Total liabilities at fair value	$	1,128	$	—	$	—	$	1,128

Changes in Level 3 Fair Value Measurements

Changes in Level 3 Fair Value Measurements

(In millions)	CEC Convertible Notes ⁽¹⁾			VICI Call Right ⁽²⁾			Derivative Instruments ⁽¹⁾			Disputed Claims Liability
Balance as of January 1, 2017	$	1,600		$	131		$	—		$	—
Restructuring of CEOC and other	640			46			—			—
Settlement of Restructuring Support and Forbearance Agreement Accrual	(2,240		)	(177		)	1,080			112
Change in fair value recorded in Other income/(loss)	—			—			(64		)	—
Balance as of December 31, 2017	—			—			1,016			112
Change in fair value recorded in Other income/(loss)	—			—			(282		)	(10		)
Change due to resolved claims in Disputed claims liability	—			—			4			(29		)
Transfer to Level 2 on October 1, 2018 ⁽³⁾	—			—			(738		)	(73		)
Balance as of December 31, 2018	$	—		$	—		$	—		$	—

____________________


⁽¹⁾	The CEC Convertible Notes were remeasured at fair value and issued on the Effective Date with a debt component and a derivative liability component. See Note 12 for further details on the debt portion of the CEC Convertible Notes. The derivative portion of the CEC Convertible Notes is a recurring fair value measurement, see below.


⁽²⁾	The VICI Call Right was remeasured at fair value and then transferred to Accrued expenses and other current liabilities on the Balance Sheet upon settlement on the Effective Date because it is an option related to real estate and not a derivative. See Note 9.

⁽³⁾

Due to a change in valuation methodology of the CEC Convertible Notes on October 1, 2018, the derivative liability of the CEC Convertible Notes and the Disputed claims liability were transferred to Level 2.

Major Terms of Interest Rate Swap Agreements



Effective Date	Notional Amount (In millions)	Fixed Rate Paid	Variable Rate Received as of December 31, 2018	Maturity Date
12/31/2018	250	2.274%	2.522%	12/31/2022
12/31/2018	200	2.828%	2.522%	12/31/2022
12/31/2018	600	2.739%	2.522%	12/31/2022
1/1/2019	250	2.153%	N/A	12/31/2020
1/1/2019	250	2.196%	N/A	12/31/2021
1/1/2019	400	2.788%	N/A	12/31/2021
1/1/2019	200	2.828%	N/A	12/31/2022
1/2/2019	250	2.172%	N/A	12/31/2020
1/2/2019	200	2.731%	N/A	12/31/2020
1/2/2019	400	2.707%	N/A	12/31/2021