XML 41 R15.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Goodwill and Intangible Assets, net | 12 Months Ended
--- | ---
Dec. 31, 2021
Other And Intangible Assets Net Disclosure [Abstract] |
Goodwill and Intangible Assets, net | Goodwill and Intangible Assets, net The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The Company determines the estimated fair values after review and consideration of relevant information including discounted cash flows, quoted market prices, and estimates made by management. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is recorded as goodwill. Goodwill and indefinite-lived intangible assets must be reviewed for impairment at least annually and between annual test dates in certain circumstances. The Company performs its annual impairment tests as of October 1 of each fiscal year. The Company performs this assessment more frequently if impairment indicators exist. We utilized an income approach using a discounted cash flow method to determine the fair value of our goodwill. The Company performed the annual goodwill impairment test by comparing the fair value of each reporting unit with its carrying amount. The Company determines the estimated fair value of each reporting unit based on a combination of earnings before interest, taxes, depreciation and amortization (“EBITDA”), valuation multiples, and estimated future cash flows discounted at rates commensurate with the capital structure and cost of capital of comparable market participants, giving appropriate consideration to the prevailing borrowing rates within the casino industry in general. The Company also evaluates the aggregate fair value of all of its reporting units and other non-operating assets in comparison to its aggregate debt and equity market capitalization at the test date. EBITDA multiples and discounted cash flows are common measures used to value businesses in the industry. Indefinite-lived intangible assets consist primarily of trademarks and expenditures associated with obtaining racing and gaming licenses. Indefinite-lived intangible assets are not subject to amortization but are subject to an annual impairment test. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess amount. Gaming rights represent intangible assets acquired from the purchase of a gaming entity located in a gaming jurisdiction where competition is limited, such as when only a limited number of gaming operators are allowed to operate in the jurisdiction. These gaming license rights are not subject to amortization as the Company has determined that they have indefinite useful lives. For gaming jurisdictions with high barriers of renewal of the gaming rights, such as material costs of renewal, the gaming rights are deemed to have a finite useful life and are amortized over the expected useful life. We used the Excess Earnings Method and a Cost Approach for estimating fair value for these gaming rights. Finite-lived intangible assets consist of trade names and customer relationships acquired in business combinations. Amortization is recorded using the straight-line method over the estimated useful life of the asset. The Company evaluates for impairment whenever indicators of impairment exist. When indicators are noted, the Company then compares estimated future cash flows, undiscounted, to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value, no impairment is recorded. In December 2021, the Company approved a capital plan which included the planned rebranding of certain of our properties, which is expected to be substantially complete by December 31, 2022. The Company utilized an income approach to determine the fair value of the trademarks subject to rebranding based on their expected future cash flows, which resulted in an impairment charge of $102 million. The adjusted carrying values of these trademarks, previously considered to have indefinite lives, have begun to be amortized over their respective remaining useful lives. During 2020, the Company recognized impairment charges in our Regional segment related to goodwill and trade names totaling $100 million and $16 million, respectively, due to declines in recent performance and the expected impact on future cash flows as a result of COVID-19. When assets are deemed to be held for sale, any associated intangible assets, including goodwill, are reclassified to Assets held for sale on our Balance Sheets (see Note 4).
Changes in Carrying Value of Goodwill by Segment |  |  |  |  |  |  |  |
(In millions) | Las Vegas |  | Regional |  | Caesars Digital |  | Managed and Branded |  | CEI Total
Gross Goodwill: |  |  |  |  |  |  |  |  |
Balance as of January 1, 2020 | $ | — |  |  | $ | 922 |  |  | $ | — |  |  | $ | — |  |  | $ | 922 |
Transferred to assets held for sale | — |  |  | (18) |  |  | — |  |  | — |  |  | (18) |
Acquired (a) | 6,873 |  |  | 2,141 |  |  | 50 |  |  | — |  |  | 9,064 |
Balance as of December 31, 2020 | 6,873 |  |  | 3,045 |  |  | 50 |  |  | — |  |  | 9,968 |
Accumulated Impairment: |  |  |  |  |  |  |  |  |
Balance as of January 1, 2020 | — |  |  | (12) |  |  | — |  |  | — |  |  | (12) |
Impairment | — |  |  | (100) |  |  | — |  |  | — |  |  | (100) |
Transferred to assets held for sale | — |  |  | 8 |  |  | — |  |  | — |  |  | 8 |
Balance as of December 31, 2020 | — |  |  | (104) |  |  | — |  |  | — |  |  | (104) |
Net carrying value, as of December 31, 2020 | $ | 6,873 |  |  | $ | 2,941 |  |  | $ | 50 |  |  | $ | — |  |  | $ | 9,864 |
Gross Goodwill: |  |  |  |  |  |  |  |  |
Balance as of January 1, 2021 | $ | 6,873 |  |  | $ | 3,045 |  |  | $ | 50 |  |  | $ | — |  |  | $ | 9,968 |
Acquired (a) | — |  |  | 63 |  |  | 1,148 |  |  | — |  |  | 1,211 |
Other | 16 |  |  | (15) |  |  | — |  |  | — |  |  | 1 |
Balance as of December 31, 2021 | 6,889 |  |  | 3,093 |  |  | 1,198 |  |  | — |  |  | 11,180 |
Accumulated Impairment: |  |  |  |  |  |  |  |  |
Balance as of January 1, 2021 | — |  |  | (104) |  |  | — |  |  | — |  |  | (104) |
Balance as of December 31, 2021 | — |  |  | (104) |  |  | — |  |  | — |  |  | (104) |
Net carrying value, as of December 31, 2021 (b) | $ | 6,889 |  |  | $ | 2,989 |  |  | $ | 1,198 |  |  | $ | — |  |  | $ | 11,076 |
____________________ (a)See Note 3 for further detail. (b)$352 million of goodwill within our Regional segment is associated with reporting units with zero or negative carrying value.
Changes in Carrying Value of Intangible Assets Other than Goodwill
| Amortizing |  | Non-Amortizing |  | Total
(In millions) | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020
Balance as of January 1 | $ | 501 |  |  | $ | 53 |  |  | $ | 3,782 |  |  | $ | 1,058 |  |  | $ | 4,283 |  |  | $ | 1,111 |
Impairment | — |  |  | — |  |  | (102) |  |  | (22) |  |  | (102) |  |  | (22) |
Amortization expense | (139) |  |  | (56) |  |  | — |  |  | — |  |  | (139) |  |  | (56) |
Transferred to assets held for sale | — |  |  | (5) |  |  | — |  |  | (174) |  |  | — |  |  | (179) |
Acquired (a) | 575 |  |  | 489 |  |  | 43 |  |  | 2,905 |  |  | 618 |  |  | 3,394 |
Acquisition of gaming rights and trademarks (b) | 253 |  |  | 20 |  |  | 50 |  |  | 15 |  |  | 303 |  |  | 35 |
Other | 19 |  |  | — |  |  | (62) |  |  | — |  |  | (43) |  |  | — |
Balance as of December 31 | $ | 1,209 |  |  | $ | 501 |  |  | $ | 3,711 |  |  | $ | 3,782 |  |  | $ | 4,920 |  |  | $ | 4,283 |
____________________ (a)See Note 3 for further detail. (b)Includes acquired royalty-free license of Planet Hollywood Trademark with an estimated useful life of 15 years and other gaming rights.
Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill
| December 31, 2021 |  | December 31, 2020
(Dollars in millions) | Useful Life |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Amortizing intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships | 3 - 7 years |  | $ | 587 |  |  | $ | (187) |  |  | $ | 400 |  |  | $ | 510 |  |  | $ | (92) |  |  | $ | 418 |
Gaming rights and others | 20 - 34 years |  | 174 |  |  | (7) |  |  | 167 |  |  | 84 |  |  | (1) |  |  | 83 |
Trademarks | 15 years |  | 322 |  |  | (21) |  |  | 301 |  |  | — |  |  | — |  |  | — |
Reacquired rights | 24 years |  | 250 |  |  | (7) |  |  | 243 |  |  | — |  |  | — |  |  | — |
Technology | 6 years |  | 110 |  |  | (12) |  |  | 98 |  |  | — |  |  | — |  |  | — |
|  |  | $ | 1,443 |  |  | $ | (234) |  |  | 1,209 |  |  | $ | 594 |  |  | $ | (93) |  |  | 501 |
Non-amortizing intangible assets |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  |  |  |  |  |  | 1,998 |  |  |  |  |  |  | 2,161 |
Gaming rights |  |  |  |  |  |  | 1,190 |  |  |  |  |  |  | 1,098 |
Caesars Rewards |  |  |  |  |  |  | 523 |  |  |  |  |  |  | 523 |
|  |  |  |  |  |  | 3,711 |  |  |  |  |  |  | 3,782 |
Total amortizing and non-amortizing intangible assets, net |  | $ | 4,920 |  |  |  |  |  |  | $ | 4,283 |
Amortization expense with respect to intangible assets for the years ended December 31, 2021, 2020 and 2019 totaled $139 million, $56 million and $30 million, respectively, which is included in depreciation and amortization in the Statements of Operations.
Estimated Five-Year Amortization
| Years Ended December 31,
(In millions) | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026
Estimated annual amortization expense | $ | 184 |  |  | $ | 138 |  |  | $ | 123 |  |  | $ | 116 |  |  | $ | 116 |

X
- Definition Other and Intangible Assets, net + References No definition available. + Details
Name: | czr_OtherAndIntangibleAssetsNetDisclosureAbstract
Namespace Prefix: | czr_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration