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Segment Information
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The executive decision maker of the Company reviews operating results, assesses performance and makes decisions on a “significant market” basis. Management views each of the Company’s casinos as an operating segment. Operating segments are aggregated based on their similar economic characteristics, types of customers, types of services and products provided, and their management and reporting structure. The Company’s principal operating activities occur in four reportable segments. The reportable segments are based on the similar characteristics of the operating segments with the way management assesses these results and allocates resources, which is a consolidated view that adjusts for the effect of certain transactions between these reportable segments within Caesars: (1) Las Vegas, (2) Regional, (3) Caesars Digital, and (4) Managed and Branded, in addition to Corporate and Other. See table below for a summary of these segments. Also, see Note 3 and Note 6 for a discussion of any impairment of intangibles or long-lived assets related to certain segments, when applicable.
The following table sets forth certain information regarding our properties (listed by segment in which each property is reported) as of September 30, 2022:
Las VegasRegionalManaged and Branded
Bally’s Las Vegas
Caesars Atlantic CityHorseshoe Bossier CityManaged
Caesars Palace Las Vegas
Circus Circus Reno
Horseshoe Council Bluffs
Harrah’s Ak-Chin
The Cromwell
Eldorado Gaming Scioto Downs
Horseshoe Hammond
Harrah’s Cherokee
Flamingo Las Vegas
Eldorado Resort Casino Reno
Horseshoe Indianapolis
Harrah’s Cherokee Valley River
Harrah’s Las Vegas
Grand Victoria CasinoHorseshoe St. Louis
Harrah’s Resort Southern California
The LINQ Hotel & Casino
Harrah’s Atlantic City
Horseshoe Tunica
Caesars Windsor
Paris Las Vegas
Harrah’s Council Bluffs
Isle Casino Bettendorf
Caesars Dubai
Planet Hollywood Resort & Casino
Harrah’s Gulf Coast
Isle of Capri Casino BoonvilleBranded
Rio All-Suite Hotel & Casino
Harrah’s Hoosier Park Racing & Casino
Horseshoe Lake Charles (b)
Caesars Southern Indiana (c)
Harrah’s Joliet
Isle of Capri Casino Lula
Harrah’s Northern California
Caesars Digital
Harrah’s Lake Tahoe
Horseshoe Black Hawk
Caesars Digital
Harrah’s Laughlin
Isle Casino Pompano Park
Harrah’s Metropolis
Isle Casino Waterloo
Harrah’s New Orleans
Lady Luck Casino - Black Hawk
Harrah’s North Kansas City
Silver Legacy Resort Casino
Harrah’s Philadelphia
Trop Casino Greenville
Harveys Lake Tahoe
Tropicana Atlantic City
Horseshoe Baltimore (a)
Tropicana Laughlin Hotel & Casino
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(a)On August 26, 2021, the Company increased its ownership interest in Horseshoe Baltimore to 75.8% and began to consolidate the property in our Regional segment following the change in ownership. Management fees prior to the consolidation of Horseshoe Baltimore have been reflected in the Managed and Branded segment.
(b)Isle of Capri Casino Hotel Lake Charles has been temporarily closed since the end of August 2020 due to damage from Hurricane Laura and the new land-based casino, Horseshoe Lake Charles, will open on December 12, 2022.
(c)The sale of Caesars Southern Indiana closed on September 3, 2021 and the Company entered into a license agreement with the Eastern Band of Cherokee Indians for the continued use of the Caesars brand and the Caesars Rewards loyalty program at Caesars Southern Indiana. Caesars Southern Indiana was previously reported within the Regional segment and subsequent to the sale, as a result of the license agreement, is reported within the Managed and Branded segment.
The properties listed above exclude the discontinued operations, including previous international properties which have been sold. The sale of Caesars UK Group closed on July 16, 2021, in which the buyer assumed all liabilities associated with the Caesars UK Group. Additionally, on September 8, 2021, the Company entered into an agreement to sell William Hill International, which closed on July 1, 2022.
Certain of our properties operate off-track betting locations, including Harrah’s Hoosier Park Racing & Casino, which operates Winner’s Circle Indianapolis and Winner’s Circle New Haven, and Horseshoe Indianapolis (formerly “Indiana Grand”), which operates Winner’s Circle Clarksville. The LINQ Promenade is an open-air dining, entertainment, and retail promenade located on the east side of the Las Vegas Strip next to The LINQ Hotel & Casino (the “LINQ”) that features the High Roller, a 550-foot observation wheel, and the Fly LINQ Zipline attraction. We also own the CAESARS FORUM conference center, which is a 550,000 square feet conference center with 300,000 square feet of flexible meeting space, two of the largest pillarless ballrooms in the world and direct access to the LINQ.
“Corporate and Other” includes certain unallocated corporate overhead costs and other adjustments, including eliminations of transactions among segments, to reconcile to the Company’s consolidated results.
The following table sets forth, for the periods indicated, certain operating data for the Company’s four reportable segments.
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2022202120222021
Las Vegas:
Net revenues$1,077 $1,017 $3,133 $2,369 
Adjusted EBITDA480 500 1,427 1,085 
Regional:
Net revenues1,530 1,492 4,348 4,173 
Adjusted EBITDA570 554 1,542 1,549 
Caesars Digital:
Net revenues212 96 311 221 
Adjusted EBITDA(38)(164)(661)(171)
Managed and Branded:
Net revenues70 79 210 206 
Adjusted EBITDA22 22 64 69 
Corporate and Other:
Net revenues(2)1 (2)10 
Adjusted EBITDA(22)(42)(86)(123)
Reconciliation of Adjusted EBITDA - By Segment to Net Income (Loss) Attributable to Caesars
Adjusted EBITDA is presented as a measure of the Company’s performance. Adjusted EBITDA is defined as revenues less certain operating expenses and is comprised of net income (loss) before (i) interest income and interest expense, net of interest capitalized, (ii) income tax (benefit) provision, (iii) depreciation and amortization, and (iv) certain items that we do not consider indicative of our 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 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 September 30,Nine Months Ended September 30,
(In millions)2022202120222021
Adjusted EBITDA by Segment:
Las Vegas$480 $500 $1,427 $1,085 
Regional570 554 1,542 1,549 
Caesars Digital(38)(164)(661)(171)
Managed and Branded22 22 64 69 
Corporate and Other(22)(42)(86)(123)
1,012 870 2,286 2,409 
Reconciliation to net income (loss) attributable to Caesars:
Net income attributable to noncontrolling interests(1)(2)(3)(2)
Net loss from discontinued operations— (4)(386)(38)
Benefit (provision) for income taxes(8)90 47 167 
Other income (loss) (a)
4 (153)53 (176)
Loss on extinguishment of debt(33)(117)(33)(140)
Interest expense, net(569)(579)(1,680)(1,734)
Depreciation and amortization(304)(276)(910)(842)
Transaction and other operating costs, net (b)
(7)(21)14 (113)
Stock-based compensation expense(26)(21)(77)(64)
Other items (c)
(16)(20)(62)(52)
Net income (loss) attributable to Caesars$52 $(233)$(751)$(585)
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(a)Other income (loss) for the three and nine months ended September 30, 2022 primarily represents the net change in fair value of investments held by the Company, foreign exchange forward contracts, and the changes in the disputed claims liability related to Former Caesars’ bankruptcy prior to the Merger. Other income (loss) for the three and nine months ended September 30, 2021 primarily represents a loss on the change in fair value of investments held by the Company and a loss on the change in fair value of the derivative liability related to the 5% Convertible Notes.
(b)Transaction and other operating costs, net for the three and nine months ended September 30, 2022 primarily represents a gain resulting from insurance proceeds received in excess of the respective carrying value of the assets damaged at Lake Charles by Hurricane Laura partially offset by various contract or lease termination exit costs. Transaction and other operating costs, net for the three and nine months ended September 30, 2021 primarily represents costs related to the William Hill Acquisition and the Merger, various contract or license termination exit costs, professional services, other acquisition costs and severance costs.
(c)Other items primarily represent certain consulting and legal fees, rent for non-operating assets, relocation expenses, retention bonuses and business optimization expenses.
Total Assets - By Segment
(In millions)September 30, 2022December 31, 2021
Las Vegas$23,164 $22,374 
Regional14,912 14,419 
Caesars Digital1,236 1,878 
Managed and Branded (a)
119 3,527 
Corporate and Other (b)
(5,837)(4,167)
Total$33,594 $38,031 
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(a)Assets held for sale associated with William Hill International were divested on July 1, 2022.
(b)Includes eliminations of transactions among segments, to reconcile to the Company’s consolidated results.