| Segment Reporting Disclosure |
Segment Reporting We view each casino property as an operating segment and currently aggregate all such casino properties into two reportable segments: CERP and CGP. Through June 30, 2016, we presented CGP as two separate reportable segments: CGP Casinos and CIE. Subsequent to the sale of the SMG Business (see Note 1) the remaining CIE business is not material. Therefore, we no longer consider CIE to be a separate reportable segment, and CGP Casinos and CIE have been combined for all periods presented as the CGP segment. Additionally, CEOC was a reportable segment until its deconsolidation effective January 15, 2015. The results of each reportable segment presented below are consistent with the way Caesars management assesses these results and allocates resources, 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 standalone filings. “Other” includes parent, consolidating, and other adjustments to reconcile to consolidated Caesars results. Condensed Statements of Operations - By Segment | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2016 | (In millions) | CERP | | CGP | | Other | | Elimination | | Caesars | Other revenues | $ | 83 |
| | $ | 57 |
| | $ | — |
| | $ | (4 | ) | | $ | 136 |
| Net revenues | 569 |
| | 422 |
| | (1 | ) | | (4 | ) | | 986 |
| Depreciation and amortization | 63 |
| | 47 |
| | 1 |
| | — |
| | 111 |
| Income/(loss) from operations | 104 |
| | (109 | ) | | (39 | ) | | — |
| | (44 | ) | Interest expense | 99 |
| | 49 |
| | (1 | ) | | — |
| | 147 |
| Deconsolidation and restructuring of CEOC and other | 1 |
| | 1 |
| | (3,072 | ) | | — |
| | (3,070 | ) | Income tax benefit/(provision) | — |
| | 2 |
| | (29 | ) | | — |
| | (27 | ) |
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2015 | (In millions) | CERP | | CGP | | Other | | Elimination | | Caesars | Other revenues | $ | 73 |
| | $ | 48 |
| | $ | 4 |
| | $ | (7 | ) | | $ | 118 |
| Net revenues | 542 |
| | 418 |
| | 4 |
| | (7 | ) | | 957 |
| Depreciation and amortization | 52 |
| | 39 |
| | — |
| | — |
| | 91 |
| Income/(loss) from operations | 98 |
| | 32 |
| | (46 | ) | | — |
| | 84 |
| Interest expense | 98 |
| | 50 |
| | (1 | ) | | — |
| | 147 |
| Deconsolidation and restructuring of CEOC and other | — |
| | 5 |
| | (940 | ) | | — |
| | (935 | ) | Income tax benefit/(provision) | — |
| | (2 | ) | | 208 |
| | — |
| | 206 |
|
| | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2016 | (In millions) | CERP | | CGP | | Other | | Elimination | | Caesars | Other revenues | $ | 235 |
| | $ | 162 |
| | $ | 3 |
| | $ | (15 | ) | | $ | 385 |
| Net revenues | 1,659 |
| | 1,283 |
| | 1 |
| | (15 | ) | | 2,928 |
| Depreciation and amortization | 195 |
| | 130 |
| | — |
| | — |
| | 325 |
| Income/(loss) from operations | 293 |
| | (22 | ) | | (116 | ) | | — |
| | 155 |
| Interest expense | 297 |
| | 149 |
| | 2 |
| | — |
| | 448 |
| Deconsolidation and restructuring of CEOC and other | — |
| | 2 |
| | (5,335 | ) | | — |
| | (5,333 | ) | Income tax benefit/(provision) | 2 |
| | 6 |
| | (45 | ) | | — |
| | (37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2015 | (In millions) | CEOC | | CERP | | CGP | | Other | | Elimination | | Caesars | Other revenues | $ | 24 |
| | $ | 224 |
| | $ | 132 |
| | $ | 21 |
| | $ | (31 | ) | | $ | 370 |
| Net revenues | 164 |
| | 1,637 |
| | 1,216 |
| | 22 |
| | (31 | ) | | 3,008 |
| Depreciation and amortization | 11 |
| | 151 |
| | 111 |
| | 1 |
| | — |
| | 274 |
| Income/(loss) from operations | 9 |
| | 332 |
| | 223 |
| | (259 | ) | | — |
| | 305 |
| Interest expense | 87 |
| | 299 |
| | 145 |
| | 1 |
| | (2 | ) | | 530 |
| Deconsolidation and restructuring of CEOC and other | — |
| | — |
| | 4 |
| | 6,160 |
| | (2 | ) | | 6,162 |
| Income tax benefit/(provision) | — |
| | (13 | ) | | 2 |
| | 60 |
| | — |
| | 49 |
|
Property EBITDA - by Segment Property earnings before interest, taxes, depreciation and amortization (“EBITDA”) is presented as a measure of the Company’s performance. 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) income tax (benefit)/provision, (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. As a result of the sale of the SMG Business (see Note 1), we have determined that CIE stock-based compensation expense should be excluded from Property EBITDA as management no longer considers such expense to be indicative of Caesars Entertainment’s ongoing consolidated or segment operating performance. Therefore, Property EBITDA has been recast for prior periods to be consistent to the current year presentation. 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. | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2016 | (In millions) | CERP | | CGP | | Other | | Elimination | | Caesars | Net income/(loss) attributable to company | $ | 6 |
| | $ | 3,897 |
| | $ | (4,546 | ) | | $ | — |
| | $ | (643 | ) | Net income/(loss) attributable to noncontrolling interests | — |
| | (33 | ) | | 681 |
| | — |
| | 648 |
| Discontinued operations, net of income taxes | — |
| | (4,019 | ) | | 726 |
| | — |
| | (3,293 | ) | Income tax (benefit)/provision | — |
| | (2 | ) | | 29 |
| | — |
| | 27 |
| Deconsolidation and restructuring of CEOC and other | (1 | ) | | (1 | ) | | 3,072 |
| | — |
| | 3,070 |
| Interest expense | 99 |
| | 49 |
| | (1 | ) | | — |
| | 147 |
| Depreciation and amortization | 63 |
| | 47 |
| | 1 |
| | — |
| | 111 |
| Corporate expense | 11 |
| | 7 |
| | 23 |
| | (1 | ) | | 40 |
| Other operating costs | — |
| | 16 |
| | 19 |
| | — |
| | 35 |
| CIE stock-based compensation | — |
| | 145 |
| | — |
| | — |
| | 145 |
| Property EBITDA | $ | 178 |
| | $ | 106 |
| | $ | 4 |
| | $ | (1 | ) | | $ | 287 |
|
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2015 | (In millions) | CERP | | CGP | | Other | | Elimination | | Caesars | Net income/(loss) attributable to company | $ | — |
| | $ | 19 |
| | $ | (810 | ) | | $ | — |
| | $ | (791 | ) | Net income attributable to noncontrolling interests | — |
| | 2 |
| | 33 |
| | — |
| | 35 |
| Discontinued operations, net of income taxes | — |
| | (36 | ) | | — |
| | — |
| | (36 | ) | Income tax (benefit)/provision | — |
| | 2 |
| | (208 | ) | | — |
| | (206 | ) | Deconsolidation and restructuring of CEOC and other | — |
| | (5 | ) | | 940 |
| | — |
| | 935 |
| Interest expense | 98 |
| | 50 |
| | (1 | ) | | — |
| | 147 |
| Depreciation and amortization | 52 |
| | 39 |
| | — |
| | — |
| | 91 |
| Corporate expense | 10 |
| | 8 |
| | 24 |
| | (2 | ) | | 40 |
| Other operating costs | 1 |
| | 9 |
| | 24 |
| | — |
| | 34 |
| CIE stock-based compensation | — |
| | 13 |
| | — |
| | — |
| | 13 |
| Property EBITDA | $ | 161 |
| | $ | 101 |
| | $ | 2 |
| | $ | (2 | ) | | $ | 262 |
|
| | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2016 | (In millions) | CERP | | CGP | | Other | | Elimination | | Caesars | Net income/(loss) attributable to company | $ | (2 | ) | | $ | 3,940 |
| | $ | (6,966 | ) | | $ | — |
| | $ | (3,028 | ) | Net income/(loss) attributable to noncontrolling interests | — |
| | (26 | ) | | 742 |
| | — |
| | 716 |
| Discontinued operations, net of income taxes | — |
| | (4,077 | ) | | 726 |
| | — |
| | (3,351 | ) | Income tax (benefit)/provision | (2 | ) | | (6 | ) | | 45 |
| | — |
| | 37 |
| Deconsolidation and restructuring of CEOC and other | — |
| | (2 | ) | | 5,335 |
| | — |
| | 5,333 |
| Interest expense | 297 |
| | 149 |
| | 2 |
| | — |
| | 448 |
| Depreciation and amortization | 195 |
| | 130 |
| | — |
| | — |
| | 325 |
| Corporate expense | 33 |
| | 22 |
| | 69 |
| | (2 | ) | | 122 |
| Other operating costs | 5 |
| | 19 |
| | 53 |
| | — |
| | 77 |
| CIE stock-based compensation | — |
| | 188 |
| | — |
| | — |
| | 188 |
| Property EBITDA | $ | 526 |
| | $ | 337 |
| | $ | 6 |
| | $ | (2 | ) | | $ | 867 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2015 | (In millions) | CEOC | | CERP | | CGP | | Other | | Elimination | | Caesars | Net income/(loss) attributable to company | $ | (85 | ) | | $ | 20 |
| | $ | 193 |
| | $ | 5,870 |
| | $ | — |
| | $ | 5,998 |
| Net income attributable to noncontrolling interests | — |
| | — |
| | 4 |
| | 90 |
| | — |
| | 94 |
| Discontinued operations, net of income taxes | 7 |
| | — |
| | (113 | ) | | — |
| | — |
| | (106 | ) | Income tax (benefit)/provision | — |
| | 13 |
| | (2 | ) | | (60 | ) | | — |
| | (49 | ) | Deconsolidation and restructuring of CEOC and other | — |
| | — |
| | (4 | ) | | (6,160 | ) | | 2 |
| | (6,162 | ) | Interest expense | 87 |
| | 299 |
| | 145 |
| | 1 |
| | (2 | ) | | 530 |
| Depreciation and amortization | 11 |
| | 151 |
| | 111 |
| | 1 |
| | — |
| | 274 |
| Corporate expense | 7 |
| | 32 |
| | 27 |
| | 76 |
| | (11 | ) | | 131 |
| Other operating costs | 4 |
| | 3 |
| | (98 | ) | | 197 |
| | — |
| | 106 |
| CIE stock-based compensation | — |
| | — |
| | 24 |
| | — |
| | — |
| | 24 |
| Property EBITDA | $ | 31 |
| | $ | 518 |
| | $ | 287 |
| | $ | 15 |
| | $ | (11 | ) | | $ | 840 |
|
Condensed Balance Sheets - By Segment | | | | | | | | | | | | | | | | | | | | | | As of September 30, 2016 | (In millions) | CERP | | CGP | | Other | | Elimination | | Caesars | Total assets | $ | 7,031 |
| | $ | 7,757 |
| | $ | 1,322 |
| | $ | (759 | ) | | $ | 15,351 |
| Total liabilities | 6,003 |
| | 3,042 |
| | 7,347 |
| | (70 | ) | | 16,322 |
|
| | | | | | | | | | | | | | | | | | | | | | As of December 31, 2015 | (In millions) | CERP | | CGP | | Other | | Elimination | | Caesars | Total assets | $ | 7,028 |
| | $ | 4,518 |
| | $ | 1,409 |
| | $ | (749 | ) | | $ | 12,206 |
| Total liabilities | 6,073 |
| | 2,798 |
| | 1,157 |
| | (55 | ) | | 9,973 |
|
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