Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Receivables, net

(In millions)	March 31, 2020		December 31, 2019
Casino	$	166	$	186
Food and beverage and rooms ⁽¹⁾	59		65
Entertainment and other	47		82
Contract receivables, net	272		333
Real estate leases	12		16
Other	105		88
Receivables, net	$	389	$	437

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⁽¹⁾	A portion of this balance relates to lease receivables associated with revenue generated from the lease components of lodging arrangements and conventions. See “Lessor Arrangements” discussion below for further details.

Contract Liabilities

(In millions)	Caesars Rewards			Customer Advance Deposits			Total
Balance as of December 31, 2019 ⁽¹⁾⁽²⁾	$	70		$	126		$	196
Amount recognized during the period ⁽³⁾	(28		)	(163		)	(191		)
Amount deferred during the period	31			141			172
Balance as of March 31, 2020 ⁽²⁾⁽⁴⁾	$	73		$	104		$	177

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⁽¹⁾	$18 million included within Deferred credits and other liabilities as of December 31, 2019.


⁽²⁾	Includes lodging arrangement and convention contract liabilities. See “Lessor Arrangements” discussion below for further details.


⁽³⁾	Includes $17 million for Caesars Rewards and $59 million for Customer Advances recognized from the December 31, 2019 Contract liability balances.


⁽⁴⁾	$24 million included within Deferred credits and other liabilities as of March 31, 2020.

Due to closure directives from various governmental and tribal bodies and travel restrictions resulting from the COVID-19 public health emergency, all hotel room reservations affected by the property closures have been automatically canceled, with full refunds. In addition, convention reservations during the closure period have been automatically postponed. We have worked with our customers to reschedule these reservations timely following our return to operation. Shows at our entertainment venues have been canceled or postponed. Purchased tickets have been refunded for canceled shows or are available for use on the rescheduled date of the show.

Lessor Arrangements

Lodging Arrangements

Lodging arrangements are considered short-term and generally consist of lease and nonlease components. The lease component is the predominant component of the arrangement and consists of the fees charged for lodging. The nonlease components primarily consist of resort fees and other miscellaneous items. As the timing and pattern of transfer of both the lease and nonlease components are over the course of the lease term, we have elected to combine the revenue generated from lease and nonlease components into a single lease component based on the predominant component in the arrangement. During the three months ended March 31, 2020 and 2019, we recognized approximately $317 million and $386 million, respectively, in lease revenue related to lodging arrangements, which is included in Rooms revenue in the Statement of Operations.

Conventions

Convention arrangements are considered short-term and generally consist of lease and nonlease components. The lease component is the predominant component of the arrangement and consists of fees charged for the use of meeting space. The nonlease components primarily consist of food and beverage and audio/visual services. Revenue from conventions is included in Food and beverage

revenue in the Statement of Operations, and during both the three months ended March 31, 2020 and 2019, we recognized approximately $15 million in lease revenue related to conventions.