Goodwill and Intangible Assets, net

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, netThe 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.


Changes in Carrying Value of Goodwill and Other Intangible Assets
			Non-Amortizing Intangible Assets
(In millions)	Amortizing Intangible Assets		Goodwill		Other
December 31, 2021	$	1,209	$	11,076	$	3,711
Amortization	(152)		—		—

Acquisition of gaming rights	10		—		1
Other (a)	28		6		(28)
September 30, 2022	$	1,095	$	11,082	$	3,684

____________________

(a)Reclassification of gaming rights, with a value of $28 million, from non-amortizing to amortizing and a purchase price adjustment to Goodwill related to the William Hill Acquisition.


Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill
	September 30, 2022							December 31, 2021
(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	$	(255)	$	332	$	587	$	(187)	$	400
Gaming rights and other	10 - 34 years	212		(14)		198		174		(7)		167
Trademarks	15 years	307		(62)		245		322		(21)		301
Reacquired rights	24 years	250		(15)		235		250		(7)		243
Technology	6 years	110		(25)		85		110		(12)		98
		$	1,466	$	(371)	1,095		$	1,443	$	(234)	1,209

Non-amortizing intangible assets
Trademarks						1,998						1,998
Gaming rights						1,163						1,190
Caesars Rewards						523						523

						3,684						3,711
Total amortizing and non-amortizing intangible assets, net						$	4,779					$	4,920

Amortization expense with respect to intangible assets for the three months ended September 30, 2022 and 2021 totaled $44 million and $39 million, respectively, and for the nine months ended September 30, 2022 and 2021 totaled $152 million and $96 million, respectively, which is included in depreciation and amortization in the Statements of Operations.


Estimated Five-Year Amortization
	Remaining 2022		Years Ended December 31,
(In millions)			2023		2024		2025		2026		2027
Estimated annual amortization expense	$	35	$	141	$	126	$	119	$	119	$	76