Segment Reporting

Caesars Entertainment is primarily a holding company and operates through four reportable segments: Caesars Entertainment Operating Company, Inc. (“CEOC”), Caesars Entertainment Resort Properties, LLC (“CERP”), Caesars Growth Partners Casino Properties and Developments (“CGP LLC Casinos”), and Caesars Interactive Entertainment, Inc. (“CIE”).

We view each casino property and CIE as operating segments and aggregate all such casino properties and CIE into these four reportable segments based on management’s view of these properties, which aligns with their ownership and underlying credit structures. While the CEOC and CERP reportable segments each comprise all of the operations of these consolidated subsidiaries, our consolidated VIE, CGP LLC, is comprised of the CGP LLC Casinos and CIE reportable segments. We revised our presentation from one reportable segment to the four listed above effective October 1, 2014, in conjunction with CES commencing operations, as the way in which CEC management assesses results and allocates resources is aligned in accordance with these segments.

The results of each reportable segment presented below are consistent with the way CEC management assesses these results, which is a consolidated view that adjusts for the impact of certain transactions between reportable segments within Caesars, as described below. Accordingly, the results of certain reportable segments presented in this filing differ from the financial statement information presented in their stand-alone filings.

CEOC results for all periods presented exclude the impact of consolidating The LINQ and Octavius Tower subsequent to their sale from CEOC to CERP in 2013. On a stand-alone basis, CEOC accounts for this transaction as a financing in accordance with U.S. Generally Accepted Accounting Principles instead of as a completed real estate sale, which results in these properties being reported as part of both CEOC and CERP on a stand-alone basis for the period subsequent to their sale. In addition, CEOC completed the sale to CGP LLC of Planet Hollywood Resort & Casino in October 2013 and four properties (The Cromwell, Bally's Las Vegas, The LINQ Hotel, and Harrah's New Orleans) in May 2014. The financial results for these five properties are excluded from the CEOC financial results for all periods presented herein and, instead, are included in the results of CGP LLC Casinos.

As a result of transactions in 2013, certain CEC and CEOC properties are now owned by CERP; accordingly, the financial information herein includes the financial results for these properties as if they were combined into the CERP reporting entities for all periods presented.

“Other” includes consolidating adjustments, eliminating adjustments and other adjustments to reconcile to consolidated CEC results. For example, management fees paid to CEOC by CGP LLC Casinos related to Planet Hollywood are included in CEOC adjusted net revenues below and eliminated in Other.

Condensed Statements of Operations - By Segment

	Year Ended December 31, 2014
(In millions)	CEOC⁽¹⁾			CERP			CGP LLC Casinos			CIE ⁽²⁾			Parent/ Other			Elimination			CEC
Management fees	$	93		$	—		$	1		$	—		$	—		$	(36	)	$	58
Net revenues	4,812			2,065			1,281			587			101			(330		)	8,516
Depreciation and amortization	291			200			115			28			3			(1		)	636
Impairment of goodwill	251			289			155			—			—			—			695
Impairment of tangible and other intangible assets	308			(12		)	—			3			—			—			299
Income/(loss) from operations	(323		)	(32		)	(139		)	21			14			7			(452		)
Interest expense	(2,184		)	(389		)	(164		)	(6		)	(16		)	89			(2,670		)
Other gains/(losses)	(100		)	—			132			—			(31		)	(96		)	(95		)
Income tax benefit from continuing operations	264			28			214			(36		)	73			—			543

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⁽¹⁾	Includes foreign net revenues of $337 million.


⁽²⁾	Includes foreign net revenues of $434 million.



	Year Ended December 31, 2013
(In millions)	CEOC ⁽¹⁾			CERP			CGP LLC Casinos			CIE ⁽²⁾			Parent/ Other			Elimination			CEC
Management fees	$	74		$	—		$	—		$	—		$	—		$	(17	)	$	57
Net revenues	4,985			1,979			1,040			317			20			(121		)	8,220
Depreciation and amortization	384			216			83			18			—			—			701
Impairment of goodwill	104			—			—			—			—			—			104
Impairment of tangible and other intangible assets	1,668			1,059			—			—			—			—			2,727
Income/(loss) from operations	(1,344		)	(804		)	(3		)	(9		)	134			—			(2,026		)
Interest expense	(2,069		)	(246		)	(60		)	(3		)	(9		)	135			(2,252		)
Other gains/(losses)	34			15			28			(1		)	87			(135		)	28
Income tax benefit from continuing operations	651			384			(113		)	(2		)	597			—			1,517

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⁽¹⁾	Includes foreign net revenues of $356 million.


⁽²⁾	Includes foreign net revenues of $224 million.



	Year Ended December 31, 2012
(In millions)	CEOC ⁽¹⁾			CERP			CGP LLC Casinos			CIE⁽²⁾			Parent/ Other			Elimination			CEC
Management fees	$	63		$	—		$	—		$	—		$	—		$	(16	)	$	47
Net revenues	4,988			2,003			1,082			206			25			(118		)	8,186
Depreciation and amortization	497			252			84			11			—			—			844
Impairment of goodwill	195			—			—			—			—			—			195
Impairment of tangible and other intangible assets	427			3			—			—			—			—			430
Income/(loss) from operations	(159		)	161			173			35			(76		)	—			134
Interest expense	(1,952		)	(232		)	(51		)	(4		)	17			122			(2,100		)
Other gains/(losses)	21			136			1			1			125			(122		)	162
Income tax benefit from continuing operations	794			(22		)	(40		)	(11		)	(20		)	—			701

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⁽¹⁾	Includes foreign net revenues of $443 million.


⁽²⁾	Includes foreign net revenues of $192 million.

Property EBITDA - by Segment

Property EBITDA is defined as revenues less property operating expenses and is comprised of net income/(loss) before (i) interest expense, net of interest capitalized and interest income, (ii) (benefit)/provision for income taxes, (iii) depreciation and amortization, (iv) corporate expenses, and (v) certain items that we do not consider indicative of its ongoing operating performance at an operating property level. In evaluating Property EBITDA you should be aware that, in the future, we may incur expenses that are the same or similar to some of the adjustments in this presentation. The presentation of Property EBITDA should not be construed as an inference that future results will be unaffected by unusual or unexpected items.

Property EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net income/(loss) as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Property EBITDA may not be comparable to similarly titled measures reported by other companies within the industry. Property EBITDA is included because management uses Property EBITDA to measure performance and allocate resources, and believes that Property EBITDA provides investors with additional information consistent with that used by management.



	Year Ended December 31, 2014
(In millions)	CEOC			CERP			CGP LLC Casinos			CIE			Parent/ Other			Elimination			CEC
Income/(loss) from operations	$	(323	)	$	(32	)	$	(139	)	$	21		$	14		$	7		$	(452	)
Depreciation and amortization	291			200			115			28			3			(1		)	636
Write-downs, reserves, and project opening costs, net of recoveries	48			14			56			—			7			(5		)	120
Impairment of goodwill	251			289			155			—			—			—			695
Impairment of tangible and other intangible assets	308			(12		)	—			3			—			—			299
Corporate expense	189			60			23			—			13			(3		)	282
Acquisition and integration costs and other	58			1			55			33			(31		)	—			116
EBITDA attributable to discontinued operations	(6		)	—			—			(1		)	—			—			(7		)
Property EBITDA	$	816		$	520		$	265		$	84		$	6		$	(2	)	$	1,689



	Year Ended December 31, 2013
(In millions)	CEOC			CERP			CGP LLC Casinos			CIE			Parent/ Other			Elimination			CEC
Income/(loss) from operations	$	(1,344	)	$	(804	)	$	(3	)	$	(9	)	$	134		$	—		$	(2,026	)
Depreciation and amortization	384			216			83			18			—			—			701
Write-downs, reserves, and project opening costs, net of recoveries	72			15			15			—			2			—			104
Impairment of goodwill	104			—			—			—			—			—			104
Impairment of tangible and other intangible assets	1,668			1,059			—			—			—			—			2,727
Corporate expense	138			47			—			—			16			(40		)	161
Acquisition and integration costs and other	34			(3		)	153			53			(138		)	—			99
EBITDA attributable to discontinued operations	7			—			—			—			—			—			7
Property EBITDA	$	1,063		$	530		$	248		$	62		$	14		$	(40	)	$	1,877



	Year Ended December 31, 2012
(In millions)	CEOC			CERP			CGP LLC Casinos		CIE		Parent/ Other			Elimination			CEC
Income/(loss) from operations	$	(159	)	$	161		$	173	$	35	$	(76	)	$	—		$	134
Depreciation and amortization	497			252			84		11		—			—			844
Write-downs, reserves, and project opening costs, net of recoveries	59			22			3		—		15			—			99
Impairment of goodwill	195			—			—		—		—			—			195
Impairment of tangible and other intangible assets	427			3			—		—		—			—			430
Corporate expense	158			80			—		—		28			(71		)	195
Acquisition and integration costs and other	25			(1		)	—		—		(1		)	—			23
EBITDA attributable to discontinued operations	108			—			—		—		—			—			108
Property EBITDA	$	1,310		$	517		$	260	$	46	$	(34	)	$	(71	)	$	2,028

Condensed Balance Sheets - By Segment

	As of December 31, 2014
(In millions)	CEOC ⁽¹⁾		CERP		CGP LLC Casinos		CIE⁽²⁾		Parent/ Other			Elimination			CEC
Total assets	$	11,355	$	7,172	$	4,185	$	546	$	2,752		$	(2,475	)	$	23,535
Total liabilities	19,773		6,334		2,979		367		(583		)	(593		)	28,277

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⁽¹⁾	Includes foreign assets of $312 million and foreign liabilities of $183 million.


⁽²⁾	Includes foreign assets of $305 million and foreign liabilities of $172 million.



	As of December 31, 2013
(In millions)	CEOC ⁽¹⁾		CERP		CGP LLC Casinos		CIE ⁽²⁾		Parent/ Other		Elimination			CEC
Total assets	$	12,593	$	7,372	$	5,091	$	427	$	785	$	(1,579	)	$	24,689
Total liabilities	20,478		6,219		1,676		251		7,332		(9,363		)	26,593

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⁽¹⁾	Includes foreign assets of $301 million and foreign liabilities of $169 million.


⁽²⁾	Includes foreign assets of $183 million and foreign liabilities of $54 million.