Aggregate fair value

CAESARS ENTERTAINMENT, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)expenses and, in the case of certain property positions, general and administrative expenses in the Company’s Statements of Operations.Restricted Stock Unit ActivityDuring the year ended December 31, 2021, as part of the annual incentive program, the Company granted RSUs to employees of the Company with an aggregate fair value of $79 million. Each RSU represents the right to receive payment in respect of one share of the Company’s Common Stock. A summary of the RSUs activity for the year ended December 31, 2021 is presented in the following table:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | Units |  | Weighted Average Grant Date Fair Value (a) |
| Unvested outstanding as of December 31, 2020 | 2,414,111  |  |  | $ | 42.55  |  |
| Granted (b) | 927,016  |  |  | 86.37  |  |
|  |  |  |  |
| Vested | (1,136,673) |  |  | 33.49  |  |
| Forfeited | (113,847) |  |  | 54.34  |  |
| Unvested outstanding as of December 31, 2021 | 2,090,607  |  |  | 61.47  |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(a)Represents the weighted-average grant date fair value of RSUs, which is the share price of our common stock on the grant date.(b)Included are 23,139 RSUs granted to non-employee members of the Board during the year ended December 31, 2021.Performance Stock Unit ActivityDuring the year ended December 31, 2021, the Company granted approximately 81 thousand PSUs that are scheduled to vest in three years from the grant date. On the vesting date, recipients will receive between 0% and 200% of the target number of PSUs granted, in the form of Company Common Stock, based on the achievement of specified performance conditions. The fair value of the PSUs is based on the market price of our common stock when a mutual understanding of the key terms and conditions of the awards between the Company and recipient is achieved. The awards are remeasured each period until such an understanding is reached. The aggregate value of PSUs granted during the year ended December 31, 2021 was $9 million.A summary of the PSUs activity for the year ended December 31, 2021 is presented in the following table:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | Units |  | Weighted Average Grant Date Fair Value (a) |
| Unvested outstanding as of December 31, 2020 (b) | 500,483  |  |  | $ | 48.32  |  |
| Granted | 81,006  |  |  | 112.28  |  |
|  |  |  |  |
| Vested | (161,556) |  |  | 37.49  |  |
| Forfeited | (2,864) |  |  | 73.21  |  |
| Unvested outstanding as of December 31, 2021 | 417,069  |  |  | 62.20  |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(a)Grant date fair value, for which compensation expense of these unvested awards is measured, has not been achieved. This represents the quoted market price of our common stock on the dated indicated. (b)PSUs were presented with RSUs as of December 31, 2020 in the 2020 Annual Report.Market-Based Stock Unit ActivityDuring the year ended December 31, 2021, the Company granted approximately 147 thousand MSUs that are scheduled to cliff vest in three years from the grant date. On the vesting date, recipients will receive between 0% and 200% of the granted MSUs in the form of Company Common Stock based on the achievement of specified market and service conditions. Based on the terms and conditions of the awards, the grant date fair value of the MSUs was determined using a Monte Carlo simulation model. Key assumptions for the Monte Carlo simulation model are the risk-free interest rate, expected volatility, expected dividends and correlation coefficient. The effect of market conditions is considered in determining the grant date fair value, which is not subsequently revised based on actual performance. The aggregate value of MSUs granted during the year ended December 31, 2021 was $15 million.[Table of Contents](#i37dfc5eabc12461dbfc5ef573d80947e_7)105
