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Segment Reporting
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure
Segment Reporting
We view each casino property as an operating segment and aggregate such casino properties into three regionally-focused reportable segments: (i) Las Vegas, (ii) Other U.S. and (iii) All Other, which is consistent with how we manage the business.
The results of each reportable segment presented below are consistent with the way management assesses these results and allocates resources, which is a consolidated view that adjusts for the effect of certain transactions between reportable segments within Caesars. We recast previously reported segment amounts to conform to the way management assesses results and allocates resources for the current year.
“All Other” includes managed, international and other properties as well as parent and other adjustments to reconcile to consolidated Caesars results.
Condensed Statements of Operations - By Segment
 
Three Months Ended June 30, 2018
(In millions)
Las Vegas
 
Other U.S.
 
All Other
 
Elimination
 
Caesars
Net revenues
$
992

 
$
982

 
$
147

 
$
(2
)
 
$
2,119

Depreciation and amortization
132

 
121

 
15

 

 
268

Income/(loss) from operations
246

 
131

 
(95
)
 

 
282

Interest expense
(80
)
 
(139
)
 
(115
)
 

 
(334
)
Restructuring and support expenses and other (1)
(2
)
 

 
47

 

 
45

Income tax benefit (2)

 

 
36

 

 
36

 
Three Months Ended June 30, 2017
(In millions)
Las Vegas
 
Other U.S.
 
All Other
 
Elimination
 
Caesars
Net revenues
$
684

 
$
307

 
$
18

 
$
(1
)
 
$
1,008

Depreciation and amortization
74

 
21

 
1

 

 
96

Income/(loss) from operations
156

 
47

 
(54
)
 

 
149

Interest expense
(3
)
 
(7
)
 
(132
)
 

 
(142
)
Restructuring and support expenses and other (1)
(3
)
 

 
(1,404
)
 

 
(1,407
)
Income tax provision (2)

 

 
(32
)
 

 
(32
)
 
Six Months Ended June 30, 2018
(In millions)
Las Vegas
 
Other U.S.
 
All Other
 
Elimination
 
Caesars
Net revenues
$
1,894

 
$
1,908

 
$
294

 
$
(5
)
 
$
4,091

Depreciation and amortization
274

 
242

 
32

 

 
548

Income/(loss) from operations
394

 
217

 
(204
)
 

 
407

Interest expense
(158
)
 
(277
)
 
(229
)
 

 
(664
)
Restructuring and support expenses and other (1)

 
2

 
227

 

 
229

Income tax benefit (2)

 

 
23

 

 
23

 
Six Months Ended June 30, 2017
(In millions)
Las Vegas
 
Other U.S.
 
All Other
 
Elimination
 
Caesars
Net revenues
$
1,355

 
$
586

 
$
34

 
$
(1
)
 
$
1,974

Depreciation and amortization
153

 
42

 
3

 

 
198

Income/(loss) from operations
308

 
76

 
(85
)
 

 
299

Interest expense
(8
)
 
(14
)
 
(267
)
 

 
(289
)
Restructuring and support expenses and other (1)
(3
)
 

 
(1,868
)
 

 
(1,871
)
Income tax provision (2)

 

 
(79
)
 

 
(79
)

____________________
(1) 
2018 amount primarily represents a change in fair value of our derivative liability related to the conversion option of the CEC Convertible Notes; 2017 amount primarily represents CEC’s costs in connection with the restructuring of CEOC.
(2) 
Taxes are recorded at the consolidated level and not estimated or recorded to our Las Vegas and Other U.S. segments.
Adjusted EBITDA - By Segment
Adjusted EBITDA is presented as a measure of the Company’s performance. Adjusted EBITDA is defined as revenues less 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.
In evaluating Adjusted 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 Adjusted EBITDA should not be construed as an inference that future results will be unaffected by unusual or unexpected items.
Adjusted 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). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies within the industry. Adjusted EBITDA is included because management uses Adjusted EBITDA to measure performance and allocate resources, and believes that Adjusted EBITDA provides investors with additional information consistent with that used by management.
 
Three Months Ended June 30, 2018
(In millions)
Las Vegas
 
Other U.S.
 
All Other
 
Elimination
 
Caesars
Net income/(loss) attributable to Caesars
$
164

 
$
(9
)
 
$
(126
)
 
$

 
$
29

Net income/(loss) attributable to noncontrolling interests

 
1

 
(1
)
 

 

Income tax benefit (1)

 

 
(36
)
 

 
(36
)
Restructuring and support expenses and other (2)
2

 

 
(47
)
 

 
(45
)
Interest expense
80

 
139

 
115

 

 
334

Depreciation and amortization
132

 
121

 
15

 

 
268

Other operating costs (3)
1

 
1

 
30

 
1

 
33

Stock-based compensation expense
2

 
3

 
15

 

 
20

Other items (4)
2

 
2

 
17

 
(1
)
 
20

Adjusted EBITDA
$
383

 
$
258

 
$
(18
)
 
$

 
$
623

 
Three Months Ended June 30, 2017
(In millions)
Las Vegas
 
Other U.S.
 
All Other
 
Elimination
 
Caesars
Net income/(loss) attributable to Caesars
$
150

 
$
40

 
$
(1,622
)
 
$

 
$
(1,432
)
Income tax provision (1)

 

 
32

 

 
32

Restructuring and support expenses and other (2)
3

 

 
1,404

 

 
1,407

Interest expense
3

 
7

 
132

 

 
142

Depreciation and amortization
74

 
21

 
1

 

 
96

Other operating costs (3)
9

 
1

 
8

 

 
18

Stock-based compensation expense

 
1

 
8

 

 
9

Other items (4)
3

 
1

 
14

 

 
18

Adjusted EBITDA
$
242

 
$
71

 
$
(23
)
 
$

 
$
290

 
Six Months Ended June 30, 2018
(In millions)
Las Vegas
 
Other U.S.
 
All Other
 
Elimination
 
Caesars
Net income/(loss) attributable to Caesars
$
236

 
$
(59
)
 
$
(182
)
 
$

 
$
(5
)
Net income/(loss) attributable to noncontrolling interests

 
1

 
(1
)
 

 

Income tax benefit (1)

 

 
(23
)
 

 
(23
)
Restructuring and support expenses and other (2)

 
(2
)
 
(227
)
 

 
(229
)
Interest expense
158

 
277

 
229

 

 
664

Depreciation and amortization
274

 
242

 
32

 

 
548

Other operating costs (3)
29

 
7

 
62

 
1

 
99

Stock-based compensation expense
4

 
5

 
29

 

 
38

Other items (4)
3

 
3

 
44

 
(1
)
 
49

Adjusted EBITDA
$
704

 
$
474

 
$
(37
)
 
$

 
$
1,141

 
Six Months Ended June 30, 2017
(In millions)
Las Vegas
 
Other U.S.
 
All Other
 
Elimination
 
Caesars
Net income/(loss) attributable to Caesars
$
297

 
$
63

 
$
(2,299
)
 
$

 
$
(1,939
)
Net loss attributable to noncontrolling interests

 
(1
)
 

 

 
(1
)
Income tax provision (1)

 

 
79

 

 
79

Restructuring and support expenses and other (2)
3

 

 
1,868

 

 
1,871

Interest expense
8

 
14

 
267

 

 
289

Depreciation and amortization
153

 
42

 
3

 

 
198

Other operating costs (3)
15

 
2

 

 

 
17

Stock-based compensation expense
1

 
1

 
16

 

 
18

Other items (4)
4

 
2

 
27

 

 
33

Adjusted EBITDA
$
481

 
$
123

 
$
(39
)
 
$

 
$
565

____________________
(1) 
Taxes are recorded at the consolidated level and not estimated or recorded to our Las Vegas and Other U.S. segments.
(2) 
2018 amount primarily represents a change in fair value of our derivative liability related to the conversion option of the CEC Convertible Notes; 2017 amount primarily represents CEC’s costs in connection with the restructuring of CEOC.
(3) 
Amounts primarily represent costs incurred in connection with costs associated with the development activities and reorganization activities, and/or recoveries associated with such items.
(4) 
Other items includes other add-backs and deductions to arrive at Adjusted EBITDA but not separately identified such as litigation awards and settlements, costs associated with CEOC’s restructuring and related litigation, severance and relocation costs, sign-on and retention bonuses, permit remediation costs, and business optimization expenses.
Condensed Balance Sheets - By Segment
 
June 30, 2018
(In millions)
Las Vegas
 
Other U.S.
 
All Other
 
Elimination
 
Caesars
Total assets
$
14,100

 
$
6,660

 
$
7,401

 
$
(3,007
)
 
$
25,154

Total liabilities
5,294

 
4,990

 
11,431

 
133

 
21,848


 
December 31, 2017
(In millions)
Las Vegas
 
Other U.S.
 
All Other
 
Elimination
 
Caesars
Total assets
$
14,145

 
$
6,865

 
$
7,458

 
$
(3,032
)
 
$
25,436

Total liabilities
5,239

 
5,012

 
11,780

 
108

 
22,139