Segment Reporting

We view each casino property and CIE as operating segments and currently aggregate all such casino properties and CIE into three reportable segments based on management’s view of these properties, which aligns with their ownership and underlying credit structures: CERP, CGP Casinos, and CIE. CGP Casinos is comprised of all subsidiaries of CGP excluding CIE. CIE is comprised of the subsidiaries that operate CGP’s social and mobile games operations and WSOP. CEOC remained a reportable segment; however, it was deconsolidated effective January 15, 2015 (see Note 4).

The results of each reportable segment presented below are consistent with the way Caesars 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.

“Other” includes parent, consolidating, and other adjustments to reconcile to consolidated Caesars results.



	Three Months Ended September 30, 2015
(In millions)	CERP		CGP Casinos		CIE ⁽¹⁾			Other			Elimination			Caesars
Management fees	$	—	$	—	$	—		$	2		$	(2	)	$	—
Net revenues	542		407		195			4			(7		)	1,141
Depreciation and amortization	52		39		7			—			—			98
Impairment of goodwill	—		—		—			—			—			—
Impairment of intangible and tangible assets	—		—		—			—			—			—
Income/(loss) from operations	99		44		43			(47		)	—			139
Interest expense	99		50		1			(2		)	(1		)	147
Deconsolidation and restructuring of CEOC and other	—		1		5			(940		)	(1		)	(935		)
Income tax benefit/(provision) from continuing operations	—		—		(21		)	208			—			187

____________________


⁽¹⁾	Includes foreign net revenues of $156 million



	Three Months Ended September 30, 2014
(In millions)	CEOC ⁽¹⁾			CERP			CGP Casinos			CIE ⁽²⁾			Other			Elimination			Caesars
Management fees	$	28		$	—		$	2		$	—		$	(1	)	$	(13	)	$	16
Net revenues	1,253			536			324			162			28			(91		)	2,212
Depreciation and amortization	80			48			31			7			(1		)	—			165
Impairment of goodwill	180			118			—			—			(9		)	—			289
Impairment of intangible and tangible assets	208			—			—			2			—			—			210
Income/(loss) from operations	(305		)	(49		)	60			21			(55		)	—			(328		)
Interest expense	579			99			42			2			—			(14		)	708
Deconsolidation and restructuring of CEOC and other	(101		)	—			55			—			(6		)	(14		)	(66		)
Income tax benefit/(provision) from continuing operations	170			(1		)	(1		)	(37		)	39			—			170

____________________


⁽¹⁾	Includes foreign net revenues of $86 million


⁽²⁾	Includes foreign net revenues of $121 million



	Nine Months Ended September 30, 2015
(In millions)	CEOC		CERP			CGP Casinos		CIE ⁽¹⁾			Other			Elimination			Caesars
Management fees	$	4	$	—		$	—	$	—		$	11		$	(13	)	$	2
Net revenues	164		1,637			1,186		557			22			(31		)	3,535
Depreciation and amortization	11		151			110		23			1			—			296
Impairment of goodwill	—		—			—		—			—			—			—
Impairment of intangible and tangible assets	—		—			—		—			—			—			—
Income/(loss) from operations	9		333			251		136			(260		)	—			469
Interest expense	87		299			144		4			1			(4		)	531
Deconsolidation and restructuring of CEOC and other	—		—			1		5			6,160			(4		)	6,162
Income tax benefit/(provision) from continuing operations	—		(13		)	—		(48		)	60			—			(1		)

____________________


⁽¹⁾	Includes foreign net revenues of $445 million



	Nine Months Ended September 30, 2014
(In millions)	CEOC ⁽¹⁾			CERP		CGP Casinos			CIE ⁽²⁾			Other			Elimination			Caesars
Management fees	$	68		$	—	$	2		$	—		$	(1	)	$	(24	)	$	45
Net revenues	3,663			1,566		910			431			89			(274		)	6,385
Depreciation and amortization	218			153		77			21			4			(2		)	471
Impairment of goodwill	164			118		—			—			7			—			289
Impairment of intangible and tangible assets	254			—		—			2			4			—			260
Income/(loss) from operations	(198		)	79		68			22			(27		)	6			(50		)
Interest expense	1,631			288		118			4			1			(88		)	1,954
Deconsolidation and restructuring of CEOC and other	(98		)	—		133			—			(35		)	(94		)	(94		)
Income tax benefit/(provision) from continuing operations	436			21		(13		)	(19		)	55			—			480

____________________


⁽¹⁾	Includes foreign net revenues of $241 million


⁽²⁾	Includes foreign net revenues of $316 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 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.



	Three Months Ended September 30, 2015
(In millions)	CERP		CGP Casinos		CIE		Other			Elimination			Caesars
Income/(loss) from operations	$	99	$	44	$	43	$	(47	)	$	—		$	139
Depreciation and amortization	52		39		7		—			—			98
Write-downs, reserves, and project opening costs, net of recoveries	1		2		—		29			—			32
Impairment of goodwill	—		—		—		—			—			—
Impairment of intangible and tangible assets	—		—		—		—			—			—
Corporate expense	10		8		—		24			(2		)	40
Acquisition and integration costs and other	—		7		—		(5		)	—			2
EBITDA attributable to discontinued operations	—		—		—		—			—			—
Property EBITDA	$	162	$	100	$	50	$	1		$	(2	)	$	311



	Three Months Ended September 30, 2014
(In millions)	CEOC			CERP			CGP Casinos			CIE		Other			Elimination		Caesars
Income/(loss) from operations	$	(305	)	$	(49	)	$	60		$	21	$	(55	)	$	—	$	(328	)
Depreciation and amortization	80			48			31			7		(1		)	—		165
Write-downs, reserves, and project opening costs, net of recoveries	3			5			10			—		1			—		19
Impairment of goodwill	180			118			—			—		(9		)	—		289
Impairment of intangible and tangible assets	208			—			—			2		—			—		210
Corporate expense	55			9			8			—		2			—		74
Acquisition and integration costs and other	11			—			(52		)	—		56			—		15
EBITDA attributable to discontinued operations	—			—			—			—		—			—		—
Property EBITDA	$	232		$	131		$	57		$	30	$	(6	)	$	—	$	444



	Nine Months Ended September 30, 2015
(In millions)	CEOC		CERP		CGP Casinos			CIE		Other			Elimination			Caesars
Income/(loss) from operations	$	9	$	333	$	251		$	136	$	(260	)	$	—		$	469
Depreciation and amortization	11		151		110			23		1			—			296
Write-downs, reserves, and project opening costs, net of recoveries	1		3		9			—		86			—			99
Impairment of goodwill	—		—		—			—		—			—			—
Impairment of intangible and tangible assets	—		—		—			—		—			—			—
Corporate expense	7		32		27			—		76			(11		)	131
Acquisition and integration costs and other	3		—		(107		)	—		111			—			7
EBITDA attributable to discontinued operations	—		—		—			—		—			—			—
Property EBITDA	$	31	$	519	$	290		$	159	$	14		$	(11	)	$	1,002



	Nine Months Ended September 30, 2014
(In millions)	CEOC			CERP		CGP Casinos		CIE			Other			Elimination			Caesars
Income/(loss) from operations	$	(198	)	$	79	$	68	$	22		$	(27	)	$	6		$	(50	)
Depreciation and amortization	218			153		77		21			4			(2		)	471
Write-downs, reserves, and project opening costs, net of recoveries	50			10		38		—			3			(6		)	95
Impairment of goodwill	164			118		—		—			7			—			289
Impairment of intangible and tangible assets	254			—		—		2			4			—			260
Corporate expense	133			43		14		—			4			(2		)	192
Acquisition and integration costs and other	27			—		2		33			18			—			80
EBITDA attributable to discontinued operations	(6		)	—		—		(1		)	—			—			(7		)
Property EBITDA	$	642		$	403	$	199	$	77		$	13		$	(4	)	$	1,330

Condensed Balance Sheets - By Segment

	As of September 30, 2015
(In millions)	CERP		CGP Casinos		CIE⁽¹⁾		Other		Elimination			Caesars
Total assets	$	7,140	$	4,228	$	468	$	1,730	$	(914	)	$	12,652
Total liabilities	6,185		2,858		285		1,213		(148		)	10,393

____________________


⁽¹⁾	Includes foreign assets of $272 million and foreign liabilities of $64 million



	As of December 31, 2014
(In millions)	CEOC ⁽¹⁾		CERP		CGP Casinos		CIE ⁽²⁾		Other			Elimination			Caesars
Total assets	$	11,185	$	7,152	$	4,171	$	546	$	2,752		$	(2,475	)	$	23,331
Total liabilities	19,603		6,314		2,965		367		(583		)	(593		)	28,073

____________________


⁽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