Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36629 | |
Entity Registrant Name | CAESARS ENTERTAINMENT, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-3657681 | |
Entity Address, Address Line One | 100 West Liberty Street | |
Entity Address, Address Line Two | 12th Floor | |
Entity Address, City or Town | Reno | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89501 | |
City Area Code | 775 | |
Local Phone Number | 328-0100 | |
Title of 12(b) Security | Common Stock, $0.00001 par value | |
Trading Symbol | CZR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 215,710,686 | |
Entity Central Index Key | 0001590895 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 841 | $ 1,038 |
Restricted cash | 130 | 131 |
Accounts receivable, net | 555 | 611 |
Inventories | 45 | 59 |
Prepayments and other current assets | 289 | 263 |
Total current assets | 1,860 | 2,102 |
Investments in and advances to unconsolidated affiliates | 91 | 94 |
Property and equipment, net | 14,700 | 14,598 |
Goodwill | 11,004 | 11,004 |
Intangible assets other than goodwill | 4,640 | 4,714 |
Deferred tax asset | 50 | 0 |
Other assets, net | 884 | 1,015 |
Total assets | 33,229 | 33,527 |
CURRENT LIABILITIES: | ||
Accounts payable | 371 | 314 |
Accrued interest | 246 | 318 |
Accrued other liabilities | 1,879 | 1,928 |
Current portion of long-term debt | 65 | 108 |
Total current liabilities | 2,561 | 2,668 |
Long-term financing obligations | 12,725 | 12,610 |
Long-term debt | 12,230 | 12,659 |
Deferred tax liability | 99 | 987 |
Other long-term liabilities | 872 | 852 |
Total liabilities | 28,487 | 29,776 |
Commitments and contingencies (Note 7) | ||
STOCKHOLDERS’ EQUITY: | ||
Caesars stockholders’ equity | 4,604 | 3,713 |
Noncontrolling interests | 138 | 38 |
Total stockholders’ equity | 4,742 | 3,751 |
Total liabilities and stockholders’ equity | $ 33,229 | $ 33,527 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
REVENUES: | ||||
Net revenues | $ 2,994 | $ 2,887 | $ 8,703 | $ 8,000 |
EXPENSES: | ||||
General and administrative | 528 | 529 | 1,536 | 1,545 |
Corporate | 74 | 63 | 239 | 208 |
Depreciation and amortization | 320 | 304 | 943 | 910 |
Transaction and other costs, net | (13) | 7 | 36 | (14) |
Total operating expenses | 2,270 | 2,228 | 6,767 | 6,749 |
Operating income | 724 | 659 | 1,936 | 1,251 |
OTHER EXPENSE: | ||||
Interest expense, net | (581) | (569) | (1,761) | (1,680) |
Loss on extinguishment of debt | (3) | (33) | (200) | (33) |
Other income (loss) | (1) | 4 | 5 | 53 |
Total other expense | (585) | (598) | (1,956) | (1,660) |
Income (loss) from continuing operations before income taxes | 139 | 61 | (20) | (409) |
Benefit (provision) for income taxes | (47) | (8) | 904 | 47 |
Income (loss) from continuing operations, net of income taxes | 92 | 53 | 884 | (362) |
Discontinued operations, net of income taxes | 0 | 0 | 0 | (386) |
Net income (loss) | 92 | 53 | 884 | (748) |
Net income attributable to noncontrolling interests | (18) | (1) | (26) | (3) |
Net income (loss) attributable to Caesars | $ 74 | $ 52 | $ 858 | $ (751) |
Net income (loss) per share - Basic | ||||
Basic income (loss) per share from continuing operations (in dollars per share) | $ 0.34 | $ 0.24 | $ 3.99 | $ (1.70) |
Basic loss per share from discontinued operations (in dollars per share) | 0 | 0 | 0 | (1.80) |
Basic income (loss) per share (in dollars per share) | 0.34 | 0.24 | 3.99 | (3.50) |
Net income (loss) per share - Diluted | ||||
Diluted income (loss) per share from continuing operations (in dollars per share) | 0.34 | 0.24 | 3.97 | (1.70) |
Diluted loss per share from discontinued operations (in dollar per shares) | 0 | 0 | 0 | (1.80) |
Diluted income (loss) per share (in dollars per share) | $ 0.34 | $ 0.24 | $ 3.97 | $ (3.50) |
Weighted average number of shares outstanding: | ||||
Weighted average basic shares outstanding (in shares) | 215 | 214 | 215 | 214 |
Weighted average diluted shares outstanding (in shares) | 216 | 215 | 216 | 214 |
Casino | ||||
REVENUES: | ||||
Net revenues | $ 1,620 | $ 1,605 | $ 4,789 | $ 4,446 |
EXPENSES: | ||||
Cost of goods and services | 831 | 838 | 2,476 | 2,727 |
Food and beverage | ||||
REVENUES: | ||||
Net revenues | 443 | 411 | 1,305 | 1,172 |
EXPENSES: | ||||
Cost of goods and services | 266 | 240 | 775 | 684 |
Hotel | ||||
REVENUES: | ||||
Net revenues | 553 | 544 | 1,581 | 1,446 |
EXPENSES: | ||||
Cost of goods and services | 146 | 142 | 426 | 391 |
Other | ||||
REVENUES: | ||||
Net revenues | 378 | 327 | 1,028 | 936 |
EXPENSES: | ||||
Cost of goods and services | $ 118 | $ 105 | $ 336 | $ 298 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 92 | $ 53 | $ 884 | $ (748) |
Foreign currency translation adjustments | 0 | 110 | 1 | 33 |
Change in fair market value of interest rate swaps, net of tax | 0 | 3 | 0 | 23 |
Other | (1) | 0 | 4 | 1 |
Other comprehensive income (loss), net of tax | (1) | 113 | 5 | 57 |
Comprehensive income (loss) | 91 | 166 | 889 | (691) |
Comprehensive income attributable to noncontrolling interests | (18) | (1) | (26) | (3) |
Comprehensive income (loss) attributable to Caesars | $ 73 | $ 165 | $ 863 | $ (694) |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2021 | 0 | |||||||
Beginning balance at Dec. 31, 2021 | $ 4,541 | $ 0 | $ 0 | $ 6,877 | $ (2,410) | $ 36 | $ (23) | $ 61 |
Beginning balance (in shares) at Dec. 31, 2021 | 214 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 25 | 25 | ||||||
Net income (loss) | (680) | (680) | ||||||
Other comprehensive (loss) income, net of tax | (20) | (20) | ||||||
Shares withheld related to net share settlement of stock awards | (20) | (20) | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 0 | |||||||
Ending balance at Mar. 31, 2022 | 3,846 | $ 0 | $ 0 | 6,882 | (3,090) | 16 | (23) | 61 |
Ending balance (in shares) at Mar. 31, 2022 | 214 | |||||||
Beginning balance (in shares) at Dec. 31, 2021 | 0 | |||||||
Beginning balance at Dec. 31, 2021 | 4,541 | $ 0 | $ 0 | 6,877 | (2,410) | 36 | (23) | 61 |
Beginning balance (in shares) at Dec. 31, 2021 | 214 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (748) | |||||||
Other comprehensive (loss) income, net of tax | 57 | |||||||
Ending balance (in shares) at Sep. 30, 2022 | 0 | |||||||
Ending balance at Sep. 30, 2022 | 3,892 | $ 0 | $ 0 | 6,929 | (3,161) | 93 | (23) | 54 |
Ending balance (in shares) at Sep. 30, 2022 | 215 | |||||||
Beginning balance (in shares) at Mar. 31, 2022 | 0 | |||||||
Beginning balance at Mar. 31, 2022 | 3,846 | $ 0 | $ 0 | 6,882 | (3,090) | 16 | (23) | 61 |
Beginning balance (in shares) at Mar. 31, 2022 | 214 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 26 | 26 | ||||||
Net income (loss) | (121) | (123) | 2 | |||||
Other comprehensive (loss) income, net of tax | (36) | (36) | ||||||
Shares withheld related to net share settlement of stock awards | (3) | (3) | ||||||
Transactions with noncontrolling interests | (1) | (1) | ||||||
Ending balance (in shares) at Jun. 30, 2022 | 0 | |||||||
Ending balance at Jun. 30, 2022 | 3,711 | $ 0 | $ 0 | 6,905 | (3,213) | (20) | (23) | 62 |
Ending balance (in shares) at Jun. 30, 2022 | 214 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation (in shares) | 1 | |||||||
Stock-based compensation | 27 | 27 | ||||||
Net income (loss) | 53 | 52 | 1 | |||||
Other comprehensive (loss) income, net of tax | 113 | 113 | ||||||
Shares withheld related to net share settlement of stock awards | (3) | (3) | ||||||
Transactions with noncontrolling interests | (9) | (9) | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 0 | |||||||
Ending balance at Sep. 30, 2022 | 3,892 | $ 0 | $ 0 | 6,929 | (3,161) | 93 | (23) | 54 |
Ending balance (in shares) at Sep. 30, 2022 | 215 | |||||||
Beginning balance (in shares) at Dec. 31, 2022 | 0 | |||||||
Beginning balance at Dec. 31, 2022 | 3,751 | $ 0 | $ 0 | 6,953 | (3,309) | 92 | (23) | 38 |
Beginning balance (in shares) at Dec. 31, 2022 | 215 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 27 | 27 | ||||||
Net income (loss) | (136) | (136) | ||||||
Other comprehensive (loss) income, net of tax | 6 | 6 | ||||||
Shares withheld related to net share settlement of stock awards | (13) | (13) | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 0 | |||||||
Ending balance at Mar. 31, 2023 | 3,635 | $ 0 | $ 0 | 6,967 | (3,445) | 98 | (23) | 38 |
Ending balance (in shares) at Mar. 31, 2023 | 215 | |||||||
Beginning balance (in shares) at Dec. 31, 2022 | 0 | |||||||
Beginning balance at Dec. 31, 2022 | 3,751 | $ 0 | $ 0 | 6,953 | (3,309) | 92 | (23) | 38 |
Beginning balance (in shares) at Dec. 31, 2022 | 215 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 884 | |||||||
Other comprehensive (loss) income, net of tax | 5 | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 0 | |||||||
Ending balance at Sep. 30, 2023 | 4,742 | $ 0 | $ 0 | 6,981 | (2,451) | 97 | (23) | 138 |
Ending balance (in shares) at Sep. 30, 2023 | 216 | |||||||
Beginning balance (in shares) at Mar. 31, 2023 | 0 | |||||||
Beginning balance at Mar. 31, 2023 | 3,635 | $ 0 | $ 0 | 6,967 | (3,445) | 98 | (23) | 38 |
Beginning balance (in shares) at Mar. 31, 2023 | 215 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 29 | 29 | ||||||
Net income (loss) | 928 | 920 | 8 | |||||
Shares withheld related to net share settlement of stock awards | (1) | (1) | ||||||
Transactions with noncontrolling interests | 76 | 76 | ||||||
Ending balance (in shares) at Jun. 30, 2023 | 0 | |||||||
Ending balance at Jun. 30, 2023 | 4,667 | $ 0 | $ 0 | 6,995 | (2,525) | 98 | (23) | 122 |
Ending balance (in shares) at Jun. 30, 2023 | 215 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation (in shares) | 1 | |||||||
Stock-based compensation | 26 | 26 | ||||||
Net income (loss) | 92 | 74 | 18 | |||||
Other comprehensive (loss) income, net of tax | (1) | (1) | ||||||
Shares withheld related to net share settlement of stock awards | (11) | (11) | ||||||
Transactions with noncontrolling interests | (31) | (29) | (2) | |||||
Ending balance (in shares) at Sep. 30, 2023 | 0 | |||||||
Ending balance at Sep. 30, 2023 | $ 4,742 | $ 0 | $ 0 | $ 6,981 | $ (2,451) | $ 97 | $ (23) | $ 138 |
Ending balance (in shares) at Sep. 30, 2023 | 216 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 884 | $ (748) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Loss from discontinued operations | 0 | 386 |
Depreciation and amortization | 943 | 910 |
Amortization of deferred financing costs and discounts | 155 | 234 |
Provision for doubtful accounts | 29 | 14 |
Loss on extinguishment of debt | 200 | 33 |
Non-cash lease amortization | 45 | 42 |
(Gain) loss on investments | (2) | 48 |
Stock compensation expense | 82 | 77 |
Loss on sale of business and disposal of property and equipment | 12 | 8 |
Deferred income taxes | (904) | (47) |
Gain on derivatives | 0 | (73) |
Other non-cash adjustments to net income (loss) | 22 | (70) |
Change in operating assets and liabilities: | ||
Accounts receivable | (17) | (63) |
Prepaid expenses and other assets | 11 | (43) |
Income taxes payable | (24) | (4) |
Accounts payable, accrued expenses and other liabilities | (135) | (235) |
Net cash provided by operating activities | 1,301 | 469 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (895) | (717) |
Acquisition of gaming rights and trademarks | (30) | (11) |
Proceeds from sale of business, property and equipment, net of cash sold | 1 | 21 |
Proceeds from the sale of investments | 3 | 121 |
Proceeds from insurance related to property damage | 0 | 36 |
Other | 40 | 0 |
Net cash used in investing activities | (881) | (550) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from long-term debt and revolving credit facilities | 5,300 | 750 |
Repayments of long-term debt and revolving credit facilities | (5,930) | (1,761) |
Financing obligation payments | (7) | (1) |
Debt issuance and extinguishment costs | (79) | 0 |
Payments to acquire ownership interest in subsidiary | (66) | 0 |
Contributions from noncontrolling interest owners | 100 | 0 |
Distributions to noncontrolling interest | (1) | 0 |
Taxes paid related to net share settlement of equity awards | (25) | (26) |
Net cash used in financing activities | (708) | (1,038) |
CASH FLOWS FROM DISCONTINUED OPERATIONS: | ||
Cash flows from operating activities | 0 | (18) |
Cash flows from investing activities | 0 | 386 |
Cash flows from financing activities | 0 | 0 |
Net cash from discontinued operations | 0 | 368 |
Effect of foreign currency exchange rates on cash | 0 | (29) |
Decrease in cash, cash equivalents and restricted cash | (288) | (780) |
Cash, cash equivalents and restricted cash, beginning of period | 1,303 | 2,021 |
Cash, cash equivalents and restricted cash, end of period | 1,015 | 1,241 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO AMOUNTS REPORTED WITHIN THE CONSOLIDATED CONDENSED BALANCE SHEETS: | ||
Cash and cash equivalents | 841 | 944 |
Restricted cash | 130 | 136 |
Restricted and escrow cash included in other assets, net | 44 | 161 |
Total cash, cash equivalents and restricted cash | 1,015 | 1,241 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash interest paid for debt | 749 | 679 |
Cash interest paid for rent related to financing obligations | 959 | 892 |
Income taxes paid, net | 23 | 18 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Payables for capital expenditures | $ 193 | $ 118 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Organization The Company is a geographically diversified gaming and hospitality company that was founded in 1973 by the Carano family with the opening of the Eldorado Hotel Casino in Reno, Nevada. Beginning in 2005, the Company grew through a series of acquisitions, including the acquisition of MTR Gaming Group, Inc. in 2014, Isle of Capri Casinos, Inc. in 2017, Tropicana Entertainment, Inc. in 2018, Caesars Entertainment Corporation in 2020 and William Hill PLC on April 22, 2021. The Company’s ticker symbol on the NASDAQ Stock Market is “CZR.” Description of Business The Company owns, leases, brands or manages an aggregate of 53 domestic properties in 18 states with approximately 52,500 slot machines, video lottery terminals and e-tables, approximately 2,700 table games and approximately 46,900 hotel rooms as of September 30, 2023. The Company operates and conducts sports wagering across 30 jurisdictions in North America, 24 of which offer mobile sports betting, and operates regulated online real money gaming businesses in six jurisdictions in North America. In addition, we have other domestic and international properties that are authorized to use the brands and marks of Caesars Entertainment, Inc., as well as other non-gaming properties. The Company’s primary source of revenue is generated by our casino properties’ gaming operations, retail and online sports betting, online gaming, and the Company utilizes its hotels, restaurants, bars, entertainment, racing, retail shops and other services to attract customers to its properties. The Company’s operations for retail and mobile sports betting, online casino, and online poker are included under the Caesars Digital segment. As part of the Caesars Digital segment, the Company has made significant investments into the interactive business in recent years, including the acquisition of William Hill PLC and strategic expansions into new markets as legalization permits. The Company has utilized significant marketing campaigns with distinguished actors, athletes and media personalities promoting the Caesars Sportsbook app. The Company expects to continue to expand its operations in the Caesars Digital segment as new jurisdictions legalize retail and online gaming and sports betting. Divestitures We periodically divest of assets in order to raise capital, as a result of a determination that the assets are not core to our business, or due to regulatory requirements. A summary of recently completed divestitures of our properties as of September 30, 2023 is as follows: Segment Property Date Sold Sales Price Regional Belle of Baton Rouge Casino & Hotel (“Baton Rouge”) May 5, 2022 * Discontinued operations: N/A William Hill International July 1, 2022 £2.0 billion ____________________ * Not meaningful. The following information presents the net revenues and net loss of recently completed divestitures: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (In millions) Baton Rouge William Hill International Baton Rouge William Hill International Net revenues $ — $ — $ 6 $ 820 Net loss — — (1) (448) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Financial Statements contain all adjustments, all of which are normal and recurring, considered necessary for a fair presentation. The results of operations for these interim periods are not necessarily indicative of the operating results for other quarters, for the full year or any future period. Additionally, certain reclassifications of prior year presentations have been made to conform to the current period presentation. The presentation of financial information herein for the periods before the Company’s divestitures of various properties is not fully comparable to the periods after the sale dates. Consolidation of Subsidiaries and Variable Interest Entities Our Financial Statements include the accounts of Caesars Entertainment, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions. We consolidate all subsidiaries in which we have a controlling financial interest and variable interest entities (“VIEs”) for which we or one of our consolidated subsidiaries is the primary beneficiary. Control generally equates to ownership percentage, whereby (i) affiliates that are more than 50% owned are consolidated; (ii) investments in affiliates of 50% or less but greater than 20% are generally accounted for using the equity method where we have determined that we have significant influence over the entities; and (iii) investments in affiliates of 20% or less are generally accounted for as investments in equity securities. We consider ourselves the primary beneficiary of a VIE when we have both the power to direct the activities that most significantly affect the results of the VIE and the right to receive benefits or the obligation to absorb losses of the entity that could be potentially significant to the VIE. We review investments for VIE consideration if a reconsideration event occurs to determine if the investment qualifies, or continues to qualify, as a VIE. If we determine an investment qualifies, or no longer qualifies, as a VIE, there may be a material effect to our Financial Statements. Transactions with Horseshoe Baltimore On July 10, 2023, we completed the acquisition of the remaining 24.2% equity ownership in Horseshoe Baltimore, utilizing cash on hand, for a total of $66 million. Cash and Cash Equivalents Cash equivalents include highly-liquid investments with original maturities of three months or less at the date of purchase including investments in money market funds that can be redeemed immediately at the current net asset value per share. A money market fund is a mutual fund whose investments are primarily in short-term debt securities designed to maximize current income with liquidity and capital preservation, usually maintaining per share net asset value at a constant amount, such as one dollar. Cash and cash equivalents also include cash maintained for gaming operations. The carrying amounts approximate the fair value because of the short maturity of those instruments (Level 1). Restricted Cash Restricted cash includes certificates of deposit and similar instruments that are subject to remeasurement on a recurring basis, as well as cash deposits which are restricted under certain operating agreements, regulatory requirement, or for future capital expenditures in the normal course of business. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Advertising Advertising costs are expensed in the period the advertising first occurs. Advertising costs for the three months ended September 30, 2023 and 2022 were $65 million and $114 million, respectively, and for the nine months ended September 30, 2023 and 2022 totaled $185 million and $490 million, respectively, and are included within operating expenses. Advertising costs for the nine months ended September 30, 2022 included significant television, radio and internet marketing campaigns promoting our Caesars Sportsbook. Advertising costs related to the Caesars Digital segment are primarily recorded in Casino expense. Interest Expense, Net Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Interest expense $ 597 $ 580 $ 1,798 $ 1,707 Capitalized interest (13) (8) (27) (19) Interest income (3) (3) (10) (8) Total interest expense, net $ 581 $ 569 $ 1,761 $ 1,680 Recently Issued Accounting Pronouncements Pronouncements to Be Implemented in Future Periods In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-06 Disclosure Improvements: Codification Amendments In Response to the SEC’s Disclosure Update and Simplification Initiative to clarify or improve disclosure and presentation requirements on a variety of topics and align the requirements in the FASB accounting standard codification with the Securities and Exchange Commission regulations. This guidance is effective for the Company no later than June 30, 2027. We do not expect the amendments in this update to have a material impact on our Financial Statements. |
Investments in and Advances to
Investments in and Advances to Unconsolidated Affiliates | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in and Advances to Unconsolidated Affiliates | Investments in and Advances to Unconsolidated Affiliates Pompano Joint Venture In April 2018, the Company entered into a joint venture with Cordish Companies (“Cordish”) to plan and develop a mixed-use entertainment and hospitality destination expected to be located on unused land adjacent to the casino at the Company’s Pompano property. As the managing member, Cordish will operate the business and manage the development, construction, financing, marketing, leasing, maintenance and day-to-day operation of the various phases of the project. Additionally, Cordish will be responsible for the development of the master plan for the project with the Company’s input and will submit it for the Company’s review and approval. While the Company holds a 50% variable interest in the joint venture, it is not the primary beneficiary; as such, the investment in the joint venture is accounted for using the equity method. The Company participates evenly with Cordish in the profits and losses of the joint venture, which are included in Transaction and other costs, net on the Statements of Operations. As of both September 30, 2023 and December 31, 2022, the Company’s investment in the joint venture was $80 million and is recorded in Investments in and advances to unconsolidated affiliates on the Balance Sheets. The Company has no further obligation to contribute additional real estate or cash as of September 30, 2023. NeoGames The Company held an investment in NeoGames S.A., a global leader of iLottery solutions and services to national and state-regulated lotteries, and other investments. On March 14, 2022, the Company sold its investment at fair value for $26 million and recorded a loss of $34 million during the nine months ended September 30, 2022, which is included within Other income (loss) on the Statements of Operations. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment (In millions) September 30, 2023 December 31, 2022 Land $ 2,088 $ 2,092 Buildings, riverboats, and leasehold and land improvements 13,365 13,094 Furniture, fixtures, and equipment 2,352 2,054 Construction in progress 682 351 Total property and equipment 18,487 17,591 Less: accumulated depreciation (3,787) (2,993) Total property and equipment, net $ 14,700 $ 14,598 A portion of our property and equipment is subject to various operating leases for which we are the lessor. Leased property includes our hotel rooms, convention space and retail space through various short-term and long-term operating leases. Depreciation Expense Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Depreciation expense $ 284 $ 260 $ 835 $ 758 Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the related lease. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets 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. Changes in Carrying Value of Goodwill and Other Intangible Assets Non-Amortizing Intangible Assets (In millions) Amortizing Intangible Assets Goodwill Other Balances as of December 31, 2022 $ 1,060 $ 11,004 $ 3,654 Amortization expense (108) — — Acquisition of gaming rights and trademarks 30 — 4 Balances as of September 30, 2023 $ 982 $ 11,004 $ 3,658 Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill September 30, 2023 December 31, 2022 (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 $ (339) $ 248 $ 587 $ (276) $ 311 Gaming rights and other 10 - 34 years 242 (25) 217 212 (16) 196 Trademarks 15 years 313 (87) 226 313 (73) 240 Reacquired rights 24 years 250 (25) 225 250 (17) 233 Technology 6 years 110 (44) 66 110 (30) 80 $ 1,502 $ (520) 982 $ 1,472 $ (412) 1,060 Non-amortizing intangible assets other than Goodwill Trademarks 1,998 1,998 Gaming rights 1,137 1,133 Caesars Rewards 523 523 3,658 3,654 Total amortizing and non-amortizing intangible assets other than Goodwill, net $ 4,640 $ 4,714 Amortization expense with respect to intangible assets for the three months ended September 30, 2023 and 2022 totaled $36 million and $44 million, respectively, and for the nine months ended September 30, 2023 and 2022 totaled $108 million and $152 million, respectively, which is included in Depreciation and amortization in the Statements of Operations. Estimated Five-Year Amortization Remaining 2023 Years Ended December 31, (In millions) 2024 2025 2026 2027 2028 Estimated annual amortization expense $ 36 $ 130 $ 122 $ 122 $ 80 $ 43 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Items Measured at Fair Value on a Recurring Basis The following table sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, in the Balance Sheets: September 30, 2023 (In millions) Level 1 Level 2 Level 3 Total Assets: Marketable securities $ 2 $ — $ — $ 2 Total assets at fair value $ 2 $ — $ — $ 2 December 31, 2022 (In millions) Level 1 Level 2 Level 3 Total Assets: Marketable securities $ 2 $ 2 $ — $ 4 Total assets at fair value $ 2 $ 2 $ — $ 4 Marketable Securities Marketable securities consist primarily of trading securities held by the Company’s captive insurance subsidiary and deferred compensation plans. The estimated fair values of the Company’s marketable securities are determined on an individual asset basis based upon quoted prices of identical assets available in active markets (Level 1), quoted prices of identical assets in inactive markets, or quoted prices for similar assets in active and inactive markets (Level 2), and represent the amounts the Company would expect to receive if the Company sold these marketable securities. Restricted Cash The estimated fair values of the Company’s restricted cash are based upon quoted prices available in active markets (Level 1) or quoted prices for similar assets in active and inactive markets (Level 2) and represent the amounts the Company would expect to receive if the Company sold the instruments classified as restricted cash. Restricted cash classified as Level 1 includes cash equivalents held in short-term certificate of deposit accounts or money market type funds. Restricted cash that is not subject to remeasurement on a recurring basis is not included in the table above. Derivative Instruments The Company does not purchase or hold any derivative financial instruments for trading purposes. Forward Contracts T he Company entered into several foreign exchange forward contracts with third parties to hedge the risk of fluctuations in the foreign exchange rates between USD and GBP. During the nine months ended September 30, 2022, the Company recorded gains of $76 million related to forward contracts, which have been recorded in Other income (loss) on the Statements of Operations. All forward contracts were settled as of July 1, 2022. Interest Rate Swap Derivatives The Company used interest rate swaps to manage the mix of debt between fixed and variable rate instruments. The term of the last interest rate swaps ended on December 31, 2022. Accumulated Other Comprehensive Income (Loss) The changes in Accumulated other comprehensive income (loss) by component, net of tax, for the periods through September 30, 2023 and 2022 are shown below. (In millions) Unrealized Net Gains on Derivative Instruments Foreign Currency Translation Adjustments Other Total Balances as of December 31, 2021 $ 73 $ (36) $ (1) $ 36 Other comprehensive income (loss) before reclassifications 5 (33) — (28) Amounts reclassified from accumulated other comprehensive income 8 — — 8 Total other comprehensive income (loss), net of tax 13 (33) — (20) Balances as of March 31, 2022 $ 86 $ (69) $ (1) $ 16 Other comprehensive income (loss) before reclassifications 1 (44) 1 (42) Amounts reclassified from accumulated other comprehensive income 6 — — 6 Total other comprehensive income (loss), net of tax 7 (44) 1 (36) Balances as of June 30, 2022 $ 93 $ (113) $ — $ (20) Other comprehensive income before reclassifications 1 110 — 111 Amounts reclassified from accumulated other comprehensive income 2 — — 2 Total other comprehensive income, net of tax 3 110 — 113 Balances as of September 30, 2022 $ 96 $ (3) $ — $ 93 Balances as of December 31, 2022 $ 94 $ (1) $ (1) $ 92 Other comprehensive income before reclassifications — 2 4 6 Total other comprehensive income, net of tax — 2 4 6 Balances as of March 31, 2023 $ 94 $ 1 $ 3 $ 98 Other comprehensive income (loss) before reclassifications — (1) 1 — Total other comprehensive income (loss), net of tax — (1) 1 — Balances as of June 30, 2023 $ 94 $ — $ 4 $ 98 Other comprehensive loss before reclassifications — — (1) (1) Total other comprehensive loss, net of tax — — (1) (1) Balances as of September 30, 2023 $ 94 $ — $ 3 $ 97 |
Litigation, Commitments and Con
Litigation, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Commitments and Contingencies | Litigation, Commitments and Contingencies Litigation General We are party to various legal proceedings, which have arisen in the normal course of our business. Such proceedings can be costly, time consuming and unpredictable and, therefore, no assurance can be given that the final outcome of such proceedings will not materially impact our consolidated financial condition or results of operations. Estimated losses are accrued for these proceedings when the loss is probable and can be estimated. While we maintain insurance coverage that we believe is adequate to mitigate the risks of such proceedings, no assurance can be given that the amount or scope of existing insurance coverage will be sufficient to cover losses arising from such matters. The current liability for the estimated losses associated with these proceedings is not material to our consolidated financial condition and those estimated losses are not expected to have a material impact on our results of operations. COVID-19 Insurance Claims The COVID-19 public health emergency had a significant impact on the Company’s business and employees, as well as the communities where the Company operates and serves. The Company purchased broad property insurance coverage to protect against “all risk of physical loss or damage” and resulting business interruption, unless specifically excluded by policies. The Company submitted claims for losses incurred as a result of the COVID-19 public health emergency which exceed $2 billion. The insurance carriers under the Company’s insurance policies have asserted that the policies do not cover losses incurred by the Company as a result of the COVID-19 public health emergency and have refused to make payments under the applicable policies. In March of 2021, the Company filed a lawsuit against certain of its insurance carriers in the state court in Clark County, Nevada relating to insurance policies that were potentially governed by Nevada law. The Company’s lawsuit was stayed pending the outcome of a separate but similar lawsuit pending in the Nevada Supreme Court. In September of 2023, the Nevada Supreme Court issued an adverse ruling in the separate but similar lawsuit. The Nevada Supreme Court decision negatively affects the Company’s claims in its Nevada lawsuit and will likely result in a dismissal of the Company’s claims with respect to insurance policies that are governed by Nevada law. There are other insurance policies issued to the Company that are governed by other state laws, including, but not limited to, New York and New Jersey. The viability of potential claims under those policies will depend on the result of decisions from the courts in those jurisdictions in lawsuits brought by other claimants. There can be no assurance as to the outcome of any such proceedings. Cybersecurity Incident On September 14, 2023, we announced that an unauthorized actor had gained access to our information technology network as a result of a social engineering attack on an outsourced IT support vendor used by the Company, and acquired a copy of, among other data, our loyalty program database (“Data Incident”). As a result of the Data Incident, we have become subject to multiple lawsuits. Between September 15 and October 26, 2023, thirteen class actions have been filed against us in U.S. federal and state courts in Nevada, New Jersey, and California, purporting to represent various classes of persons whose personal information was affected by the Data Incident. These class actions assert a variety of common law and statutory claims based on allegations that the Company failed to use reasonable security procedures and practices to safeguard customers’ personal information, and seek monetary and statutory damages, injunctive relief and other related relief. Caesars is seeking consolidation of the cases that have been filed into a single case. In addition, the Company has received inquiries from state regulators related to the Data Incident. We are responding to these inquiries and cooperating fully with regulators. While we believe it is reasonably possible that we may incur losses associated with the above described proceedings, it is not possible to estimate the amount of loss or range of loss, if any, that might result from adverse judgments, settlements, or other resolution given the stage of these proceedings, the absence of specific allegations regarding the alleged damages, the uncertainty as to the certification of a class or classes and the size of any certified class, if applicable, and/or the lack of resolution of significant factual and legal issues. Additional lawsuits and claims related to the Data Incident may be asserted by or on behalf of customers, shareholders or others seeking damages or other related relief, and governmental agencies may open additional inquiries or investigations into the Data Incident. The Company is pursuing insurance coverage in relation to costs and liabilities incurred due to the Data Incident. We have incurred, and may continue to incur, certain expenses related to the Data Incident, including expenses to respond to, remediate and investigate this matter. The full scope of the costs and related impacts of this incident, including the extent to which these costs will be offset by our cybersecurity insurance or potential indemnification claims against third parties, has not been determined. We are unable to predict the full impact of this incident and its impact on guest behavior in the future, including whether a change in our guests’ behavior could negatively impact our financial condition and results of operations on an ongoing basis. As of the date of this report, there has not been a material effect on the Company’s financial condition and results of operations and we currently do not expect that it will have such an effect in the future. Contractual Commitments Capital Commitments Harrah’s New Orleans In April 2020, the Company and the State of Louisiana, by and through the Louisiana Gaming Control Board, entered into an Amended and Restated Casino Operating Contract. Additionally, the Company, New Orleans Building Corporation and the City entered into a Second Amended and Restated Lease Agreement. Based on these amendments related to Harrah’s New Orleans, the Company is required to make a capital investment of $325 million on or around Harrah’s New Orleans by July 15, 2024. The capital investment will involve the rebranding of the property to Caesars New Orleans which includes a renovation and full interior and exterior redesign, updated casino floor, new culinary experiences and a new 340-room hotel tower. The project has a current capital plan of approximately $430 million, and as of September 30, 2023, total capital expenditures have been $239 million since the project began. Atlantic City As required by the New Jersey Gaming Control Board, in 2020, the Company funded $400 million in escrow to provide funds for a three year capital expenditure plan in the state of New Jersey. The capital plan includes significant room renovations at both Caesars Atlantic City and Harrah’s Atlantic City, as well as the addition of new restaurants with celebrity partners. As of September 30, 2023 and December 31, 2022, the restricted cash balance remaining in the escrow account was $21 million and $118 million, respectively. This amount is currently included in restricted cash in Other assets, net. Sports Sponsorship/Partnership Obligations The Company has agreements with certain professional sports leagues and teams, sporting event facilities and media companies for tickets, suites, advertising, marketing, promotional and sponsorship opportunities including communication with partner customer databases. Additionally, a selection of such partnerships provides Caesars with exclusivity to access the aforementioned rights within the casino and/or sports betting category. As of September 30, 2023 and December 31, 2022 , obligations related to these agreements were $639 million and $898 million, respectively, with contracts extending through 2040. These obligations include leasing of event suites that are generally considered short-term leases for which the Company does not record a right of use asset or lease liability. The Company recognizes expenses in the period services are received in accordance with the various agreements. In addition, assets or liabilities may be recorded related to the timing of payments as required by the respective agreement. Self-Insurance The Company is self-insured for workers compensation and other risk insurance, as well as health insurance and general liability. The Company’s total estimated self-insurance liability as of September 30, 2023 and December 31, 2022, was $208 million and $203 million, respectively, which is included in Accrued other liabilities in our Balance Sheets. The assumptions utilized by our actuaries are subject to significant uncertainty and if outcomes differ from these assumptions or events develop or progress in a negative manner, the Company could experience a material adverse effect and additional liabilities may be recorded in the future. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt September 30, 2023 December 31, 2022 (Dollars in millions) Final Maturity Rates Face Value Book Value Book Value Secured Debt CEI Revolving Credit Facility 2028 variable $ — $ — $ — CEI Term Loan A 2028 variable 722 719 747 CEI Term Loan B 2030 variable 2,487 2,437 — CRC Senior Secured Notes 2025 5.75% 989 982 979 CEI Senior Secured Notes due 2025 2025 6.25% 3,399 3,370 3,360 CEI Senior Secured Notes due 2030 2030 7.00% 2,000 1,978 — Baltimore Revolving Credit Facility N/A N/A — — — Baltimore Term Loan N/A N/A — — 262 Convention Center Mortgage Loan N/A N/A — — 400 CRC Incremental Term Loan N/A N/A — — 972 CRC Term Loan N/A N/A — — 3,243 Unsecured Debt CEI Senior Notes due 2027 2027 8.125% 1,611 1,592 1,589 CEI Senior Notes due 2029 2029 4.625% 1,200 1,187 1,186 Special Improvement District Bonds 2037 4.30% 45 45 47 Long-term notes and other payables 2 2 2 Total debt 12,455 12,312 12,787 Current portion of long-term debt (65) (65) (108) Deferred finance charges associated with the CEI Revolving Credit Facility — (17) (20) Long-term debt $ 12,390 $ 12,230 $ 12,659 Unamortized discounts and deferred finance charges $ 160 $ 318 Fair value $ 12,167 Annual Estimated Debt Service Requirements as of September 30, 2023 Remaining Years Ended December 31, (In millions) 2023 2024 2025 2026 2027 Thereafter Total Annual maturities of long-term debt $ 16 $ 65 $ 4,453 $ 65 $ 1,676 $ 6,180 $ 12,455 Estimated interest payments 100 870 830 540 530 820 3,690 Total debt service obligation (a) $ 116 $ 935 $ 5,283 $ 605 $ 2,206 $ 7,000 $ 16,145 ____________________ (a) Debt principal payments are estimated amounts based on contractual maturity and scheduled repayment dates. Interest payments are estimated based on the forward-looking SOFR curve, where applicable. Actual payments may differ from these estimates. Current Portion of Long-Term Debt The current portion of long-term debt as of September 30, 2023 includes the principal payments on the term loans, other unsecured borrowings, and special improvement district bonds that are contractually due within 12 months. The Company may, from time to time, seek to repurchase or prepay its outstanding indebtedness. Any such purchases or repayments may be funded by existing cash balances or the incurrence of debt. The amount and timing of any repurchase will be based on business and market conditions, capital availability, compliance with debt covenants and other considerations. Debt Discounts or Premiums and Deferred Finance Charges Debt discounts or premiums and deferred finance charges incurred in connection with the issuance of debt are amortized to interest expense based on the related debt agreements primarily using the effective interest method. Unamortized discounts are written off and included in our gain or loss calculations to the extent we extinguish debt prior to the original maturity or scheduled payment dates. Fair Value The fair value of debt has been calculated primarily based on the borrowing rates available as of September 30, 2023 and based on market quotes of our publicly traded debt. We classify the fair value of debt within Level 1 and Level 2 in the fair value hierarchy. Terms of Outstanding Debt CEI Term Loans and CEI Revolving Credit Facility CEI is party to a credit agreement, dated as of July 20, 2020, with JPMorgan Chase Bank, N.A., as administrative agent, U.S. Bank National Association, as collateral agent, and certain banks and other financial institutions and lenders party thereto (the “CEI Credit Agreement”), which, as amended, provides for the CEI Revolving Credit Facility in an aggregate principal amount of $2.25 billion (the “CEI Revolving Credit Facility”). The CEI Revolving Credit Facility contains reserves of $40 million which are available only for certain permitted uses. On October 5, 2022, Caesars entered into a third amendment to the CEI Credit Agreement (the “Third Amendment”) pursuant to which the Company (a) incurred a senior secured term loan in an aggregate principal amount of $750 million (the “CEI Term Loan A”) as a new term loan under the credit agreement, (b) amended and extended the CEI Revolving Credit Facility under the CEI Credit Agreement (the CEI Revolving Credit Facility, as so amended, the “Amended CEI Revolving Credit Facility” and, together with the CEI Term Loan A, the “Senior Credit Facilities”), (c) increased the aggregate principal amount of the CEI Revolving Credit Facility to $2.25 billion, and (d) made certain other amendments to the CEI Credit Agreement. Both the Amended CEI Revolving Credit Facility and the new CEI Term Loan A mature on January 31, 2028, subject to a springing maturity in the event certain other long-term debt of Caesars is not extended or repaid. The Amended CEI Revolving Credit Facility includes a letter of credit sub-facility of $388 million. The CEI Term Loan A requires scheduled quarterly payments in amounts equal to 1.25% of the original aggregate principal amount of the CEI Term Loan A, with the balance payable at maturity. The Company may make voluntary prepayments of the CEI Term Loan A at any time prior to maturity at par. Borrowings under the Senior Credit Facilities bear interest, paid monthly, at a rate equal to, at the Company’s option, either (a) a forward-looking term rate based on Secured Overnight Financing Rate (“SOFR”) for the applicable interest period plus an adjustment of 0.10% per annum (“Adjusted Term SOFR”), subject to a floor of 0% or (b) a base rate (the “Base Rate”) determined by reference to the highest of (i) the rate of interest per annum last quoted by The Wall Street Journal as the “Prime Rate” in the United States, (ii) the federal funds rate plus 0.50% per annum and (iii) the one-month Adjusted Term SOFR plus 1.00% per annum, in each case, plus an applicable margin. Such applicable margin is 2.25% per annum in the case of any Adjusted Term SOFR loan and 1.25% per annum in the case of any Base Rate loan, subject to three 0.25% step-downs based on the Company’s net total leverage ratio. In addition, on a quarterly basis, the Company is required to pay each lender under the Amended CEI Revolving Credit Facility a commitment fee in respect of any unused commitments under the Amended CEI Revolving Credit Facility in the amount of 0.35% per annum of the principal amount of the unused commitments of such lender, subject to three 0.05% step-downs based on the Company’s net total leverage ratio. On February 6, 2023, Caesars entered into an Incremental Assumption Agreement No. 2 pursuant to which the Company incurred a new senior secured term loan facility in an aggregate principal amount of $2.5 billion (the “CEI Term Loan B” and, together with the CEI Term Loan A, the “CEI Term Loans”) as a new term loan under the CEI Credit Agreement. The CEI Term Loan B requires scheduled quarterly amortization payments in amounts equal to 0.25% of the original aggregate principal amount of the CEI Term Loan B, with the balance payable at maturity. Borrowings under the CEI Term Loan B bear interest, paid monthly, at a rate equal to, at the Company’s option, either (a) a forward-looking term rate based on the Adjusted Term SOFR, subject to a floor of 0.50% or (b) a base rate (the “Base Rate”) determined by reference to the highest of (i) the Prime Rate in the United States, (ii) the federal funds rate plus 0.50% per annum and (iii) the one-month Adjusted Term SOFR plus 1.00% per annum, in each case, plus an applicable margin. Such applicable margin is 3.25% per annum in the case of any Adjusted Term SOFR loan and 2.25% per annum in the case of any Base Rate loan, subject to one 0.25% step-down based on the Company’s net total leverage ratio. The CEI Term Loan B was issued at a price of 99.0% of the principal amount and will mature in February 2030. The net proceeds from the CEI Term Loan B, along with the net proceeds from the issuance of the CEI Senior Secured Notes due 2030 described below, were used to repay the outstanding principal balance, including accrued and unpaid interest, of both the CRC Term Loan and the CRC Incremental Term Loan. During the nine months ended September 30, 2023, the Company utilized and fully repaid the CEI Revolving Credit Facility. Such activity is presented in the financing section in the Statements of Cash Flows. As of September 30, 2023, the Company had $2.1 billion of available borrowing capacity under the CEI Revolving Credit Facility, after consideration of $71 million in outstanding letters of credit, $46 million committed for regulatory purposes, and the reserves described above. CRC Senior Secured Notes due 2025 On July 6, 2020, Colt Merger Sub, Inc. (the “Escrow Issuer”) issued $1.0 billion in aggregate principal amount of 5.75% Senior Secured Notes due 2025 pursuant to an indenture, dated July 6, 2020 (the “CRC Senior Secured Notes”), by and among the Escrow Issuer, U.S. Bank National Association, as trustee and Credit Suisse AG, Cayman Islands Branch, as collateral agent. The CRC Senior Secured Notes rank equally with all existing and future first priority lien obligations of CRC, CRC Finco, Inc. and the subsidiary guarantors. The CRC Senior Secured Notes will mature on July 1, 2025, with interest payable semi-annually in cash in arrears on January 1 and July 1 of each year. CEI Senior Secured Notes due 2025 On July 6, 2020, the Escrow Issuer issued $3.4 billion in aggregate principal amount of 6.25% Senior Secured Notes due 2025 pursuant to an indenture dated July 6, 2020 (the “CEI Senior Secured Notes due 2025”), by and among the Escrow Issuer, U.S. Bank National Association, as trustee, and U.S. Bank National Association, as collateral agent. The CEI Senior Secured Notes due 2025 rank equally with all existing and future first-priority lien obligations of the Company and the subsidiary guarantors. The CEI Senior Secured Notes due 2025 will mature on July 1, 2025, with interest payable semi-annually in cash in arrears on January 1 and July 1 of each year. On April 5, 2023, the Company purchased $1 million in principal amount of the CEI Senior Secured Notes due 2025. CEI Senior Secured Notes due 2030 On February 6, 2023, concurrently with the issuance of the CEI Term Loan B, the Company issued $2.0 billion in aggregate principal amount of 7.00% senior secured notes (the “CEI Senior Secured Notes due 2030”) pursuant to an indenture by and among the Company, the subsidiary guarantors party thereto from time to time, U.S. Bank Trust Company, National Association, as trustee, and U.S. Bank National Association, as collateral agent. The CEI Senior Secured Notes due 2030 rank equally with all existing and future first-priority lien obligations of the Company and the subsidiary guarantors. The CEI Senior Secured Notes due 2030 will mature in February 2030, with interest paid semi-annually on February 15 and August 15 of each year, commencing August 15, 2023. Baltimore Term Loan and Baltimore Revolving Credit Facility On July 17, 2023, following the acquisition of the remaining 24.2% equity interest in Horseshoe Baltimore, the Company permanently repaid the outstanding principal balance of Horseshoe Baltimore’s senior secured term loan facility (the “Baltimore Term Loan”) by utilizing the CEI Revolving Credit Facility, which was also repaid as of September 30, 2023. In connection with the repayment, the Company recognized a $3 million loss on the early extinguishment of debt. The Baltimore Term Loan was subject to a variable rate of interest calculated as London Interbank Offered Rate (“LIBOR”) plus 4.00% until May 1, 2023, when the Baltimore Term Loan’s benchmark interest rate was amended from LIBOR to the Adjusted Term SOFR plus an applicable adjustment for the applicable period. In addition, Horseshoe Baltimore’s senior secured revolving credit facility (the “Baltimore Revolving Credit Facility”) matured on July 7, 2023. The Baltimore Revolving Credit Facility had borrowing capacity of up to $10 million, subject to a variable rate of interest calculated as Term SOFR plus 4.00%. Convention Center Mortgage Loan On September 18, 2020, the Company entered into a loan agreement with a subsidiary of VICI Properties L.P., a Delaware limited partnership (“VICI”), to borrow a 5-year, $400 million Forum Convention Center mortgage loan (the “Mortgage Loan”). The Mortgage Loan bears interest at a rate of, initially, 7.7% per annum, which escalates annually on the anniversary of the closing date to a maximum interest rate of 8.3% per annum. On May 1, 2023, the Company elected to prepay the outstanding $400 million Mortgage Loan utilizing cash on hand. In connection with the repayment, the Company extended VICI’s call right relating to the CAESARS FORUM convention center from December 31, 2026 to December 31, 2028. CRC Term Loan and CRC Incremental Term Loan Caesars Resort Collection (“CRC”) was party to a credit agreement, dated as of December 22, 2017 (as amended, the “CRC Credit Agreement”), which provided for, among other things, an initial $4.7 billion seven-year senior secured term loan (the “CRC Term Loan”), and an incremental $1.8 billion five-year senior secured term loan (the “CRC Incremental Term Loan”). The CRC Term Loan and the CRC Incremental Term Loan were subject to the terms described below prior to repayment. The Company repaid the $3.4 billion outstanding principal amount of the CRC Term Loan and the $1.0 billion outstanding principal amount of the CRC Incremental Term Loan on February 6, 2023, with proceeds from a new CEI Term Loan B and new CEI Senior Secured Notes due 2030, both of which are described above. Upon the termination of the CRC Term Loan and the CRC Incremental Term Loan, the Company recorded a loss on extinguishment of debt of $197 million. Borrowings under the CRC Credit Agreement were subject to interest at a rate equal to either (a) LIBOR adjusted for certain additional costs, subject to a floor of 0% or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate as determined by Credit Suisse AG, Cayman Islands Branch, as administrative agent under the CRC Credit Agreement and (iii) the one-month adjusted LIBOR rate plus 1.00%, in each case plus an applicable margin. Such applicable margin shall be (a) with respect to the CRC Term Loan, 2.75% per annum in the case of any LIBOR loan or 1.75% per annum in the case of any base rate loan and (b) with respect to the CRC Incremental Term Loan, 3.50% per annum in the case of any LIBOR loan or 2.50% in the case of any base rate loan. CEI Senior Notes due 2027 On July 6, 2020, the Escrow Issuer issued $1.8 billion in aggregate principal amount of 8.125% Senior Notes due 2027 pursuant to an indenture, dated July 6, 2020 (the “CEI Senior Notes due 2027”), by and between the Escrow Issuer and U.S. Bank National Association, as trustee. The CEI Senior Notes due 2027 rank equally with all existing and future senior unsecured indebtedness of the Company and the subsidiary guarantors. The CEI Senior Notes due 2027 will mature on July 1, 2027, with interest payable semi-annually in cash in arrears on January 1 and July 1 of each year. CEI Senior Notes due 2029 On September 24, 2021, the Company issued $1.2 billion in aggregate principal amount of 4.625% Senior Notes due 2029 (the “CEI Senior Notes due 2029”) pursuant to an indenture dated as of September 24, 2021, between the Company and U.S. Bank National Association, as trustee. The CEI Senior Notes due 2029 rank equally with all existing and future senior unsecured indebtedness of the Company and the subsidiary guarantors. The CEI Senior Notes due 2029 will mature on October 15, 2029, with interest payable on April 15 and October 15 of each year. Debt Covenant Compliance The Senior Credit Facilities, the CEI Term Loan B, and the indentures governing the CRC Senior Secured Notes, the CEI Senior Secured Notes due 2025, the CEI Senior Secured Notes due 2030, the CEI Senior Notes due 2027, and the CEI Senior Notes due 2029 contain covenants which are standard and customary for these types of agreements. These include negative covenants, which, subject to certain exceptions and baskets, limit the Company’s and its subsidiaries’ ability to (among other items) incur additional indebtedness, make investments, make restricted payments, including dividends, grant liens, sell assets and make acquisitions. Following the Third Amendment, the Amended CEI Revolving Credit Facility and the CEI Term Loan A include a maximum net total leverage ratio financial covenant of 7.25:1 until December 31, 2024 and 6.50:1 from and after December 31, 2024. In addition, the Amended CEI Revolving Credit Facility and the CEI Term Loan A include a minimum fixed charge coverage ratio financial covenant of 1.75:1 until December 31, 2024 and 2.0:1 from and after December 31, 2024. From and after the repayment of the CEI Term Loan A, the financial covenants applicable to the Amended CEI Revolving Credit Facility will be tested solely to the extent that certain testing conditions are satisfied. Failure to comply with such covenants could result in an acceleration of the maturity of indebtedness outstanding under the relevant debt document. As of September 30, 2023, the Company was in compliance with all of the applicable financial covenants described above. Guarantees The Senior Credit Facilities, the CEI Term Loan B, the CEI Senior Secured Notes due 2025 and the CEI Senior Secured Notes due 2030 are guaranteed on a senior secured basis by each existing and future material wholly-owned domestic subsidiary of the Company (subject to certain exceptions including CRC and its subsidiaries) and are secured by substantially all of the existing and future property and assets of the Company and its subsidiary guarantors (subject to certain exceptions). The CEI Senior Notes due 2027 and the CEI Senior Notes due 2029 are guaranteed on a senior unsecured basis by such subsidiaries. The CRC Senior Secured Notes are guaranteed on a senior secured basis by each existing and future material wholly-owned domestic subsidiary of CRC (subject to certain exceptions) and are secured by substantially all of the existing and future property and assets of CRC and its subsidiary guarantors (subject to certain exceptions). The CRC Senior Secured Notes are also guaranteed on a senior unsecured basis by the Company. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company’s Statements of Operations present net revenue disaggregated by type or nature of the good or service. A summary of net revenues disaggregated by type of revenue and reportable segment is presented below. Refer to Note 14 for additional information on the Company’s reportable segments. Three Months Ended September 30, 2023 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total Casino $ 323 $ 1,111 $ 186 $ — $ — $ 1,620 Food and beverage 285 158 — — — 443 Hotel 341 212 — — — 553 Other 171 84 29 98 (4) 378 Net revenues $ 1,120 $ 1,565 $ 215 $ 98 $ (4) $ 2,994 Three Months Ended September 30, 2022 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total Casino $ 323 $ 1,096 $ 187 $ — $ (1) $ 1,605 Food and beverage 264 147 — — — 411 Hotel 335 209 — — — 544 Other 155 78 25 70 (1) 327 Net revenues $ 1,077 $ 1,530 $ 212 $ 70 $ (2) $ 2,887 Nine Months Ended September 30, 2023 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total Casino $ 945 $ 3,247 $ 599 $ — $ (2) $ 4,789 Food and beverage 868 437 — — — 1,305 Hotel 1,067 514 — — — 1,581 Other 499 217 70 239 3 1,028 Net revenues $ 3,379 $ 4,415 $ 669 $ 239 $ 1 $ 8,703 Nine Months Ended September 30, 2022 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total Casino $ 929 $ 3,264 $ 255 $ — $ (2) $ 4,446 Food and beverage 775 397 — — — 1,172 Hotel 959 487 — — — 1,446 Other 470 200 56 210 — 936 Net revenues $ 3,133 $ 4,348 $ 311 $ 210 $ (2) $ 8,000 Accounts Receivable, Net (In millions) September 30, 2023 December 31, 2022 Casino $ 215 $ 259 Food and beverage and hotel 137 144 Other 203 208 Accounts receivable, net $ 555 $ 611 Contract and Contract-Related Liabilities The Company records contract or contract-related liabilities related to differences between the timing of cash receipts from the customer and the recognition of revenue. The Company generally has three types of liabilities related to contracts with customers: (1) outstanding chip liability, which represents the amounts owed in exchange for gaming chips held by customers, (2) Caesars Rewards player loyalty program obligations, which represent the deferred allocation of revenue relating to reward credits granted to Caesars Rewards members based on certain types of customer spend, including online and retail gaming, hotel, dining, retail shopping, and player loyalty program incentives earned, and (3) customer deposits and other deferred revenue, which primarily represents funds deposited by customers related to gaming play and advance payments received for goods and services yet to be provided (such as advance ticket sales, deposits on rooms and convention space, unpaid wagers, iGaming deposits, or future sports bets). These liabilities are generally expected to be recognized as revenue within one year of being purchased, earned, or deposited and are recorded within Accrued other liabilities on the Company’s Balance Sheets. Liabilities expected to be recognized as revenue beyond one year of being purchased, earned, or deposited are recorded within Other long-term liabilities on the Company’s Balance Sheets. The following table summarizes the activity related to contract and contract-related liabilities: Outstanding Chip Liability Caesars Rewards Customer Deposits and Other Deferred Revenue (In millions) 2023 2022 2023 2022 2023 2022 Balance at January 1 $ 45 $ 48 $ 87 $ 91 $ 693 $ 560 Balance at September 30 38 40 93 95 661 662 Increase / (decrease) $ (7) $ (8) $ 6 $ 4 $ (32) $ 102 Lease Revenue 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 September 30, 2023 and 2022, we recognized approximately $553 million and $544 million, respectively, and during the nine months ended September 30, 2023 and 2022, we recognized approximately $1.6 billion and $1.4 billion, respectively, which is included in Hotel revenues in the Statements 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 Statements of Operations and during the three months ended September 30, 2023 and 2022, lease revenue related to conventions was approximately $5 million and $4 million, respectively, and during the nine months ended September 30, 2023 and 2022, lease revenue related to conventions was approximately $31 million and $23 million, respectively. Real Estate Operating Leases Real estate lease revenue is included in Other revenue in the Statements of Operations. During the three months ended September 30, 2023 and 2022, we recognized approximately $42 million for both periods, and during the nine months ended September 30, 2023 and 2022, we recognized approximately $122 million and $125 million, respectively, of real estate lease revenue. Real estate lease revenue includes $14 million and $17 million of variable rental income for the three months ended September 30, 2023 and 2022, and $44 million and $45 million for the nine months ended September 30, 2023 and 2022, respectively. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table illustrates the reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share computations for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share data) 2023 2022 2023 2022 Net income (loss) from continuing operations attributable to Caesars, net of income taxes $ 74 $ 52 $ 858 $ (365) Discontinued operations, net of income taxes — — — (386) Net income (loss) attributable to Caesars $ 74 $ 52 $ 858 $ (751) Shares outstanding: Weighted average shares outstanding – basic 215 214 215 214 Effect of dilutive securities: Stock-based compensation awards 1 1 1 — Weighted average shares outstanding – diluted 216 215 216 214 Basic income (loss) per share from continuing operations $ 0.34 $ 0.24 $ 3.99 $ (1.70) Basic loss per share from discontinued operations — — — (1.80) Net income (loss) per common share attributable to common stockholders – basic: $ 0.34 $ 0.24 $ 3.99 $ (3.50) Diluted income (loss) per share from continuing operations $ 0.34 $ 0.24 $ 3.97 $ (1.70) Diluted loss per share from discontinued operations — — — (1.80) Net income (loss) per common share attributable to common stockholders – diluted: $ 0.34 $ 0.24 $ 3.97 $ (3.50) For a period in which the Company generated a net loss from continuing operations, the Weighted average shares outstanding - basic was used in calculating Diluted loss per share because using diluted shares would have been anti-dilutive to loss per share. Weighted-Average Number of Anti-Dilutive Shares Excluded from the Calculation of Earnings per Share Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Stock-based compensation awards 1 2 1 3 Total anti-dilutive common stock 1 2 1 3 |
Stock-Based Compensation and St
Stock-Based Compensation and Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Stockholders’ Equity | Stock-Based Compensation and Stockholders’ Equity Stock-Based Awards The Company maintains long-term incentive plans which allow for granting stock-based compensation awards to directors, employees, officers, and consultants or advisers who render services to the Company or its subsidiaries, based on Company Common Stock, including stock options, restricted stock, restricted stock units (“RSUs”), performance stock units (“PSUs”), market-based performance stock units (“MSUs”), stock appreciation rights, and other stock-based awards or dividend equivalents. Forfeitures are recognized in the period in which they occur. Total stock-based compensation expense in the accompanying Statements of Operations totaled $26 million during both of the three months ended September 30, 2023 and 2022 and $82 million and $77 million during the nine months ended September 30, 2023 and 2022, respectively. These amounts are included in Corporate expense in the Company’s Statements of Operations. 2015 Equity Incentive Plan (“2015 Plan”) During the nine months ended September 30, 2023, as part of the annual incentive program, the Company granted 1.5 million RSUs to eligible participants with an aggregate fair value of $76 million and a ratable vesting period of one During the nine months ended September 30, 2023, the Company also granted 192 thousand PSUs that are scheduled to cliff vest over a period of two In addition, during the nine months ended September 30, 2023, the Company granted 379 thousand MSUs that are scheduled to cliff vest over a period of one During the nine months ended September 30, 2023, there were no grants of stock options and 88 stock options were exercised. In addition, during the nine months ended September 30, 2023, 1.1 million, 243 thousand and 140 thousand of RSUs, PSUs and MSUs, respectively, vested under the 2015 Plan. Outstanding at End of Period September 30, 2023 December 31, 2022 Quantity Wtd-Avg (a) Quantity Wtd-Avg (a) Stock options — $ — 88 $ 30.63 Restricted stock units 2,148,409 60.64 1,863,481 66.87 Performance stock units 327,835 46.35 383,157 51.73 Market-based stock units 871,284 85.11 741,803 83.24 ____________________ (a) Represents the weighted-average exercise price for stock options, weighted-average grant date fair value for RSUs, weighted-average grant date fair value for PSUs where the grant date has been achieved, the price of CEI common stock as of the balance sheet date for PSUs where a grant date has not been achieved, and the grant date fair value of the MSUs determined using the Monte-Carlo simulation model. Share Repurchase Program In November 2018, the Company’s Board of Directors authorized a $150 million common stock repurchase program (the “Share Repurchase Program”) pursuant to which the Company may, from time to time, repurchase shares of common stock on the open market (either with or without a 10b5-1 plan) or through privately negotiated transactions. The Share Repurchase Program has no time limit and may be suspended or discontinued at any time without notice. There is no minimum number of shares of common stock that the Company is required to repurchase under the Share Repurchase Program. As of September 30, 2023, the Company has acquired 223,823 shares of common stock under the Share Repurchase Program at an aggregate value of $9 million and an average of $40.80 per share. No shares were repurchased during the nine months ended September 30, 2023 and 2022. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s provision for income taxes during interim reporting periods has historically been calculated by applying an estimate of the annual effective tax rate for the full year to “ordinary” income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. However, the Company utilized a discrete effective tax rate method, as allowed by ASC 740-270 “Income Taxes, Interim Reporting,” to calculate taxes for the three and nine months ended September 30, 2023. The Company determined that small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate, and therefore, the historical method would not provide a reliable estimate for the three and nine months ended September 30, 2023. Income Tax Allocation Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Income (loss) from continuing operations before income taxes $ 139 $ 61 $ (20) $ (409) Benefit (provision) for income taxes (47) (8) 904 47 Effective tax rate 33.8 % 13.1 % * 11.5 % ____________________ * Not meaningful. The Company classifies accruals for uncertain tax positions within Other long-term liabilities on the Balance Sheets, separate from any related income tax payable or deferred income taxes. Reserve amounts relate to any potential income tax liabilities resulting from uncertain tax positions as well as potential interest or penalties associated with those liabilities. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use existing deferred tax assets. During the second quarter of 2023, the Company evaluated its forecasted adjusted taxable income and objectively verifiable evidence and placed substantial weight on its 2022 and 2023 quarterly earnings, adjusted for non-recurring items, including the interest expense disallowed under current tax law. Accordingly, the Company determined it was more likely than not that a portion of the federal and state deferred tax assets will be realized and, as a result, during the second quarter of 2023, the Company reversed the valuation allowance related to these deferred tax assets and recorded an income tax benefit of $940 million. The Company is still carrying a valuation allowance on certain federal and state deferred tax assets that are not more likely than not to be realized in the future. The Company has assessed the changes to the valuation allowance, including realization of the disallowed interest expense deferred tax asset, using the integrated approach. The income tax provision for the three months ended September 30, 2023 differed from the expected income tax provision based on the federal tax rate of 21% primarily due to an increase in federal and state valuation allowances against the deferred tax assets for excess business interest expense. The income tax benefit for the nine months ended September 30, 2023 differed from the expected income tax benefit based on the federal tax rate of 21% primarily due to the partial release of federal and state valuation allowances. The income tax benefit for the three months ended September 30, 2022 differed from the expected income tax provision based on the federal tax rate of 21% primarily due to a decrease in the state deferred tax liabilities as a result of a reduction in tax rates in Pennsylvania and Iowa. The income tax benefit for the nine months ended September 30, 2022 differed from the expected income tax benefit based on the federal tax rate of 21% primarily due to a deferred tax adjustment related to the tax impact of the settlement of preexisting relationships upon the acquisition of William Hill PLC in 2021 and nondeductible expenses. The Company, including its subsidiaries, files tax returns with federal, state, and foreign jurisdictions. The Company does not have tax sharing agreements with the other members within its consolidated group. The Company is subject to exam by various state and foreign tax authorities. With few exceptions, the Company is no longer subject to US federal or state and local tax assessments by tax authorities for years before 2019, and it is possible that the amount of the liability for unrecognized tax benefits could change during the next 12 months. |
Related Affiliates
Related Affiliates | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Affiliates | Related Affiliates REI As of September 30, 2023, Recreational Enterprises, Inc. (“REI”) owned approximately 4.0% of the outstanding common stock of the Company. The directors of REI are the Company’s Executive Chairman of the Board, Gary L. Carano, its Chief Executive Officer and Board member, Thomas R. Reeg, and its Vice President of Player Development, Gene Carano. In addition, Gary L. Carano also serves as the Vice President of REI and Gene Carano also serves as the Secretary and Treasurer of REI. Members of the Carano family, including Gary L. Carano and Gene Carano, own the equity interests in REI. During the nine months ended September 30, 2023 and 2022, there were no related party transactions between the Company and the Carano family other than compensation, including salary and equity incentives, and the CSY Lease listed below. C. S. & Y. Associates The Company owns the entire parcel on which Eldorado Reno is located, except for approximately 30,000 square feet which is leased from C. S. & Y. Associates (“CSY”) which is an entity partially owned by REI (the “CSY Lease”). The CSY Lease expires on June 30, 2057. Annual rent pursuant to the CSY Lease is currently $0.6 million, paid monthly. Annual rent is subject to periodic rent escalations through the term of the lease. As of September 30, 2023 and December 31, 2022, there were no amounts due to or from CSY. C VA Holdco, LLC In May 2023, the Company entered into a joint venture, CVA Holdco, LLC, with the Eastern Band of Cherokee Indians (“EBCI”) and an additional minority partner, to construct, own and operate a gaming facility in Danville, Virginia (“Caesars Virginia”). Caesars Virginia opened in a temporary facility on May 15, 2023 which will be replaced by a permanent facility that is currently under construction and is estimated to open in late 2024. As the managing member, the Company will operate the business and manage the development, construction, financing, marketing, leasing, maintenance and day-to-day operation of the various phases of the project. While the Company holds a 49.5% variable interest in the joint venture, it is the primary beneficiary; as such, the joint venture’s operations are included in the Financial Statements, with a minority interest recorded reflecting the operations attributed to the other partners. The Company participates ratably, based on ownership percentage, with the partners in the profits and losses of the joint venture. As of September 30, 2023, the Company has received $100 million in contributions for the project and EBCI and the other minority partners are obligated to contribute additional cash totaling $24 million to the joint venture. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationThe 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 4 and Note 5 for a discussion of any impairment of intangible assets 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, 2023: Las Vegas Regional Managed and Branded Caesars Palace Las Vegas Caesars Atlantic City Harveys Lake Tahoe Managed The Cromwell Caesars Virginia (b) Horseshoe Baltimore Harrah’s Ak-Chin Flamingo Las Vegas Circus Circus Reno Horseshoe Black Hawk Harrah’s Cherokee Harrah’s Las Vegas Eldorado Gaming Scioto Downs Horseshoe Bossier City Harrah’s Cherokee Valley River Horseshoe Las Vegas Eldorado Resort Casino Reno Horseshoe Council Bluffs Harrah’s Resort Southern California The LINQ Hotel & Casino Grand Victoria Casino Horseshoe Hammond Caesars Windsor Paris Las Vegas Harrah’s Atlantic City Horseshoe Indianapolis Caesars Dubai (d) Planet Hollywood Resort & Casino Harrah’s Columbus Nebraska (c) Horseshoe Lake Charles Branded Rio All-Suite Hotel & Casino (a) Harrah’s Council Bluffs Horseshoe St. Louis Caesars Southern Indiana Harrah’s Gulf Coast Horseshoe Tunica Harrah’s Northern California Caesars Digital Harrah’s Hoosier Park Racing & Casino Isle Casino Bettendorf Caesars Digital Harrah’s Joliet Isle of Capri Casino Boonville Harrah’s Lake Tahoe Isle of Capri Casino Lula Harrah’s Laughlin Isle Casino Waterloo Harrah’s Metropolis Lady Luck Casino - Black Hawk Harrah’s New Orleans Silver Legacy Resort Casino Harrah’s North Kansas City Trop Casino Greenville Harrah’s Philadelphia Tropicana Atlantic City Harrah’s Pompano Beach Tropicana Laughlin Hotel & Casino ____________________ (a) As of October 2, 2023, Caesars no longer operates the Rio All-Suite Hotel & Casino and all operations were assumed by the lessor. (b) Temporary gaming facility opened on May 15, 2023. The construction of the permanent facility of Caesars Virginia is expected to be completed in late 2024. (c) Temporary gaming facility opened on June 12, 2023. The construction of the permanent facility of Harrah’s Columbus Nebraska is expected to be completed in the first half of 2024. (d) On November 16, 2023, the Company expects to exit the management agreement associated with Caesars Dubai and the property will be renamed under new ownership. 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, 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 convention 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, in addition to Corporate and Other: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Las Vegas: Net revenues $ 1,120 $ 1,077 $ 3,379 $ 3,133 Adjusted EBITDA 482 480 1,527 1,427 Regional: Net revenues 1,565 1,530 4,415 4,348 Adjusted EBITDA 575 570 1,531 1,542 Caesars Digital: Net revenues 215 212 669 311 Adjusted EBITDA 2 (38) 9 (661) Managed and Branded: Net revenues 98 70 239 210 Adjusted EBITDA 20 22 58 64 Corporate and Other: Net revenues (4) (2) 1 (2) Adjusted EBITDA (36) (22) (117) (86) Reconciliation of Net Income (Loss) Attributable to Caesars to Adjusted EBITDA by Segment 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) 2023 2022 2023 2022 Net income (loss) attributable to Caesars $ 74 $ 52 $ 858 $ (751) Net income attributable to noncontrolling interests 18 1 26 3 Net loss from discontinued operations — — — 386 (Benefit) provision for income taxes 47 8 (904) (47) Other (income) loss (a) 1 (4) (5) (53) Loss on extinguishment of debt 3 33 200 33 Interest expense, net 581 569 1,761 1,680 Depreciation and amortization 320 304 943 910 Transaction costs and other, net (b) (27) 23 47 48 Stock-based compensation expense 26 26 82 77 Adjusted EBITDA $ 1,043 $ 1,012 $ 3,008 $ 2,286 Adjusted EBITDA by Segment: Las Vegas $ 482 $ 480 $ 1,527 $ 1,427 Regional 575 570 1,531 1,542 Caesars Digital 2 (38) 9 (661) Managed and Branded 20 22 58 64 Corporate and Other (36) (22) (117) (86) ____________________ (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 changes in the fair value of a disputed claim liability. (b) Transaction costs and other, net for the three and nine months ended September 30, 2023 primarily includes (i) net proceeds received in exchange for participation rights in a potential insurance recovery, (ii) proceeds received for the termination of the Caesars Dubai management agreement and (iii) costs related to non-cash losses on the write down and disposal of assets, pre-opening costs in connection with new temporary facility openings and non-cash changes in equity method investments. Transaction costs and other, net for the three and nine months ended September 30, 2022 primarily represents professional services for integration activities and various contract exit or termination costs partially offset by a gain resulting from insurance proceeds received in excess of the respective carrying value of damaged assets associated with the Lake Charles property. Total Assets - By Segment (In millions) September 30, 2023 December 31, 2022 Las Vegas $ 23,965 $ 23,547 Regional 15,206 14,908 Caesars Digital 1,086 1,200 Managed and Branded 206 140 Corporate and Other (a) (7,234) (6,268) Total $ 33,229 $ 33,527 ____________________ (a) Includes eliminations of transactions among segments, to reconcile to the Company’s consolidated results. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) attributable to Caesars | $ 74 | $ 52 | $ 858 | $ (751) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation of Subsidiaries and Variable Interest Entities | Basis of Presentation The accompanying unaudited Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Financial Statements contain all adjustments, all of which are normal and recurring, considered necessary for a fair presentation. The results of operations for these interim periods are not necessarily indicative of the operating results for other quarters, for the full year or any future period. Additionally, certain reclassifications of prior year presentations have been made to conform to the current period presentation. The presentation of financial information herein for the periods before the Company’s divestitures of various properties is not fully comparable to the periods after the sale dates. Consolidation of Subsidiaries and Variable Interest Entities Our Financial Statements include the accounts of Caesars Entertainment, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions. We consolidate all subsidiaries in which we have a controlling financial interest and variable interest entities (“VIEs”) for which we or one of our consolidated subsidiaries is the primary beneficiary. Control generally equates to ownership percentage, whereby (i) affiliates that are more than 50% owned are consolidated; (ii) investments in affiliates of 50% or less but greater than 20% are generally accounted for using the equity method where we have determined that we have significant influence over the entities; and (iii) investments in affiliates of 20% or less are generally accounted for as investments in equity securities. We consider ourselves the primary beneficiary of a VIE when we have both the power to direct the activities that most significantly affect the results of the VIE and the right to receive benefits or the obligation to absorb losses of the entity that could be potentially significant to the VIE. We review investments for VIE consideration if a reconsideration event occurs to determine if the investment qualifies, or continues to qualify, as a VIE. If we determine an investment qualifies, or no longer qualifies, as a VIE, there may be a material effect to our Financial Statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include highly-liquid investments with original maturities of three months or less at the date of purchase including investments in money market funds that can be redeemed immediately at the current net asset value per share. A money market fund is a mutual fund whose investments are primarily in short-term debt securities designed to maximize current income with liquidity and capital preservation, usually maintaining per share net asset value at a constant amount, such as one dollar. Cash and cash equivalents also include cash maintained for gaming operations. The carrying amounts approximate the fair value because of the short maturity of those instruments (Level 1). |
Restricted Cash | Restricted Cash Restricted cash includes certificates of deposit and similar instruments that are subject to remeasurement on a recurring basis, as well as cash deposits which are restricted under certain operating agreements, regulatory requirement, or for future capital expenditures in the normal course of business. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Advertising | AdvertisingAdvertising costs are expensed in the period the advertising first occurs.Advertising costs for the nine months ended September 30, 2022 included significant television, radio and internet marketing campaigns promoting our Caesars Sportsbook. Advertising costs related to the Caesars Digital segment are primarily recorded in Casino expense. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Pronouncements to Be Implemented in Future Periods In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-06 Disclosure Improvements: Codification Amendments In Response to the SEC’s Disclosure Update and Simplification Initiative to clarify or improve disclosure and presentation requirements on a variety of topics and align the requirements in the FASB accounting standard codification with the Securities and Exchange Commission regulations. This guidance is effective for the Company no later than June 30, 2027. We do not expect the amendments in this update to have a material impact on our Financial Statements. |
Organization and Description _2
Organization and Description of Business (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Recently Completed Divestitures of Our Properties | A summary of recently completed divestitures of our properties as of September 30, 2023 is as follows: Segment Property Date Sold Sales Price Regional Belle of Baton Rouge Casino & Hotel (“Baton Rouge”) May 5, 2022 * Discontinued operations: N/A William Hill International July 1, 2022 £2.0 billion ____________________ * Not meaningful. The following information presents the net revenues and net loss of recently completed divestitures: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (In millions) Baton Rouge William Hill International Baton Rouge William Hill International Net revenues $ — $ — $ 6 $ 820 Net loss — — (1) (448) |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Interest Expense, Net | Interest Expense, Net Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Interest expense $ 597 $ 580 $ 1,798 $ 1,707 Capitalized interest (13) (8) (27) (19) Interest income (3) (3) (10) (8) Total interest expense, net $ 581 $ 569 $ 1,761 $ 1,680 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | (In millions) September 30, 2023 December 31, 2022 Land $ 2,088 $ 2,092 Buildings, riverboats, and leasehold and land improvements 13,365 13,094 Furniture, fixtures, and equipment 2,352 2,054 Construction in progress 682 351 Total property and equipment 18,487 17,591 Less: accumulated depreciation (3,787) (2,993) Total property and equipment, net $ 14,700 $ 14,598 Depreciation Expense Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Depreciation expense $ 284 $ 260 $ 835 $ 758 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Value of Goodwill and Other Intangible Assets | Changes in Carrying Value of Goodwill and Other Intangible Assets Non-Amortizing Intangible Assets (In millions) Amortizing Intangible Assets Goodwill Other Balances as of December 31, 2022 $ 1,060 $ 11,004 $ 3,654 Amortization expense (108) — — Acquisition of gaming rights and trademarks 30 — 4 Balances as of September 30, 2023 $ 982 $ 11,004 $ 3,658 |
Schedule of Finite-Lived Intangible Assets | Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill September 30, 2023 December 31, 2022 (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 $ (339) $ 248 $ 587 $ (276) $ 311 Gaming rights and other 10 - 34 years 242 (25) 217 212 (16) 196 Trademarks 15 years 313 (87) 226 313 (73) 240 Reacquired rights 24 years 250 (25) 225 250 (17) 233 Technology 6 years 110 (44) 66 110 (30) 80 $ 1,502 $ (520) 982 $ 1,472 $ (412) 1,060 Non-amortizing intangible assets other than Goodwill Trademarks 1,998 1,998 Gaming rights 1,137 1,133 Caesars Rewards 523 523 3,658 3,654 Total amortizing and non-amortizing intangible assets other than Goodwill, net $ 4,640 $ 4,714 |
Schedule of Indefinite-Lived Intangible Assets | Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill September 30, 2023 December 31, 2022 (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 $ (339) $ 248 $ 587 $ (276) $ 311 Gaming rights and other 10 - 34 years 242 (25) 217 212 (16) 196 Trademarks 15 years 313 (87) 226 313 (73) 240 Reacquired rights 24 years 250 (25) 225 250 (17) 233 Technology 6 years 110 (44) 66 110 (30) 80 $ 1,502 $ (520) 982 $ 1,472 $ (412) 1,060 Non-amortizing intangible assets other than Goodwill Trademarks 1,998 1,998 Gaming rights 1,137 1,133 Caesars Rewards 523 523 3,658 3,654 Total amortizing and non-amortizing intangible assets other than Goodwill, net $ 4,640 $ 4,714 |
Schedule of Estimated Annual Amortization Expense | Estimated Five-Year Amortization Remaining 2023 Years Ended December 31, (In millions) 2024 2025 2026 2027 2028 Estimated annual amortization expense $ 36 $ 130 $ 122 $ 122 $ 80 $ 43 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, in the Balance Sheets: September 30, 2023 (In millions) Level 1 Level 2 Level 3 Total Assets: Marketable securities $ 2 $ — $ — $ 2 Total assets at fair value $ 2 $ — $ — $ 2 December 31, 2022 (In millions) Level 1 Level 2 Level 3 Total Assets: Marketable securities $ 2 $ 2 $ — $ 4 Total assets at fair value $ 2 $ 2 $ — $ 4 |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The changes in Accumulated other comprehensive income (loss) by component, net of tax, for the periods through September 30, 2023 and 2022 are shown below. (In millions) Unrealized Net Gains on Derivative Instruments Foreign Currency Translation Adjustments Other Total Balances as of December 31, 2021 $ 73 $ (36) $ (1) $ 36 Other comprehensive income (loss) before reclassifications 5 (33) — (28) Amounts reclassified from accumulated other comprehensive income 8 — — 8 Total other comprehensive income (loss), net of tax 13 (33) — (20) Balances as of March 31, 2022 $ 86 $ (69) $ (1) $ 16 Other comprehensive income (loss) before reclassifications 1 (44) 1 (42) Amounts reclassified from accumulated other comprehensive income 6 — — 6 Total other comprehensive income (loss), net of tax 7 (44) 1 (36) Balances as of June 30, 2022 $ 93 $ (113) $ — $ (20) Other comprehensive income before reclassifications 1 110 — 111 Amounts reclassified from accumulated other comprehensive income 2 — — 2 Total other comprehensive income, net of tax 3 110 — 113 Balances as of September 30, 2022 $ 96 $ (3) $ — $ 93 Balances as of December 31, 2022 $ 94 $ (1) $ (1) $ 92 Other comprehensive income before reclassifications — 2 4 6 Total other comprehensive income, net of tax — 2 4 6 Balances as of March 31, 2023 $ 94 $ 1 $ 3 $ 98 Other comprehensive income (loss) before reclassifications — (1) 1 — Total other comprehensive income (loss), net of tax — (1) 1 — Balances as of June 30, 2023 $ 94 $ — $ 4 $ 98 Other comprehensive loss before reclassifications — — (1) (1) Total other comprehensive loss, net of tax — — (1) (1) Balances as of September 30, 2023 $ 94 $ — $ 3 $ 97 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | September 30, 2023 December 31, 2022 (Dollars in millions) Final Maturity Rates Face Value Book Value Book Value Secured Debt CEI Revolving Credit Facility 2028 variable $ — $ — $ — CEI Term Loan A 2028 variable 722 719 747 CEI Term Loan B 2030 variable 2,487 2,437 — CRC Senior Secured Notes 2025 5.75% 989 982 979 CEI Senior Secured Notes due 2025 2025 6.25% 3,399 3,370 3,360 CEI Senior Secured Notes due 2030 2030 7.00% 2,000 1,978 — Baltimore Revolving Credit Facility N/A N/A — — — Baltimore Term Loan N/A N/A — — 262 Convention Center Mortgage Loan N/A N/A — — 400 CRC Incremental Term Loan N/A N/A — — 972 CRC Term Loan N/A N/A — — 3,243 Unsecured Debt CEI Senior Notes due 2027 2027 8.125% 1,611 1,592 1,589 CEI Senior Notes due 2029 2029 4.625% 1,200 1,187 1,186 Special Improvement District Bonds 2037 4.30% 45 45 47 Long-term notes and other payables 2 2 2 Total debt 12,455 12,312 12,787 Current portion of long-term debt (65) (65) (108) Deferred finance charges associated with the CEI Revolving Credit Facility — (17) (20) Long-term debt $ 12,390 $ 12,230 $ 12,659 Unamortized discounts and deferred finance charges $ 160 $ 318 Fair value $ 12,167 |
Schedule of Maturities of Long-Term Debt | Annual Estimated Debt Service Requirements as of September 30, 2023 Remaining Years Ended December 31, (In millions) 2023 2024 2025 2026 2027 Thereafter Total Annual maturities of long-term debt $ 16 $ 65 $ 4,453 $ 65 $ 1,676 $ 6,180 $ 12,455 Estimated interest payments 100 870 830 540 530 820 3,690 Total debt service obligation (a) $ 116 $ 935 $ 5,283 $ 605 $ 2,206 $ 7,000 $ 16,145 ____________________ (a) Debt principal payments are estimated amounts based on contractual maturity and scheduled repayment dates. Interest payments are estimated based on the forward-looking SOFR curve, where applicable. Actual payments may differ from these estimates. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Net Revenues Disaggregated by Type of Revenue and Reportable Segment | The Company’s Statements of Operations present net revenue disaggregated by type or nature of the good or service. A summary of net revenues disaggregated by type of revenue and reportable segment is presented below. Refer to Note 14 for additional information on the Company’s reportable segments. Three Months Ended September 30, 2023 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total Casino $ 323 $ 1,111 $ 186 $ — $ — $ 1,620 Food and beverage 285 158 — — — 443 Hotel 341 212 — — — 553 Other 171 84 29 98 (4) 378 Net revenues $ 1,120 $ 1,565 $ 215 $ 98 $ (4) $ 2,994 Three Months Ended September 30, 2022 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total Casino $ 323 $ 1,096 $ 187 $ — $ (1) $ 1,605 Food and beverage 264 147 — — — 411 Hotel 335 209 — — — 544 Other 155 78 25 70 (1) 327 Net revenues $ 1,077 $ 1,530 $ 212 $ 70 $ (2) $ 2,887 Nine Months Ended September 30, 2023 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total Casino $ 945 $ 3,247 $ 599 $ — $ (2) $ 4,789 Food and beverage 868 437 — — — 1,305 Hotel 1,067 514 — — — 1,581 Other 499 217 70 239 3 1,028 Net revenues $ 3,379 $ 4,415 $ 669 $ 239 $ 1 $ 8,703 Nine Months Ended September 30, 2022 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total Casino $ 929 $ 3,264 $ 255 $ — $ (2) $ 4,446 Food and beverage 775 397 — — — 1,172 Hotel 959 487 — — — 1,446 Other 470 200 56 210 — 936 Net revenues $ 3,133 $ 4,348 $ 311 $ 210 $ (2) $ 8,000 |
Schedule of Accounts Receivable, Net | Accounts Receivable, Net (In millions) September 30, 2023 December 31, 2022 Casino $ 215 $ 259 Food and beverage and hotel 137 144 Other 203 208 Accounts receivable, net $ 555 $ 611 |
Schedule of Activity Related to Contract and Contract-Related Liabilities | The following table summarizes the activity related to contract and contract-related liabilities: Outstanding Chip Liability Caesars Rewards Customer Deposits and Other Deferred Revenue (In millions) 2023 2022 2023 2022 2023 2022 Balance at January 1 $ 45 $ 48 $ 87 $ 91 $ 693 $ 560 Balance at September 30 38 40 93 95 661 662 Increase / (decrease) $ (7) $ (8) $ 6 $ 4 $ (32) $ 102 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerators and Denominators of the Basic and Diluted Net Income (Loss) Per Share Computations | The following table illustrates the reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share computations for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share data) 2023 2022 2023 2022 Net income (loss) from continuing operations attributable to Caesars, net of income taxes $ 74 $ 52 $ 858 $ (365) Discontinued operations, net of income taxes — — — (386) Net income (loss) attributable to Caesars $ 74 $ 52 $ 858 $ (751) Shares outstanding: Weighted average shares outstanding – basic 215 214 215 214 Effect of dilutive securities: Stock-based compensation awards 1 1 1 — Weighted average shares outstanding – diluted 216 215 216 214 Basic income (loss) per share from continuing operations $ 0.34 $ 0.24 $ 3.99 $ (1.70) Basic loss per share from discontinued operations — — — (1.80) Net income (loss) per common share attributable to common stockholders – basic: $ 0.34 $ 0.24 $ 3.99 $ (3.50) Diluted income (loss) per share from continuing operations $ 0.34 $ 0.24 $ 3.97 $ (1.70) Diluted loss per share from discontinued operations — — — (1.80) Net income (loss) per common share attributable to common stockholders – diluted: $ 0.34 $ 0.24 $ 3.97 $ (3.50) |
Schedule of Weighted-Average Number of Anti-Dilutive Shares Excluded from the Calculation of Earnings Per Share | Weighted-Average Number of Anti-Dilutive Shares Excluded from the Calculation of Earnings per Share Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Stock-based compensation awards 1 2 1 3 Total anti-dilutive common stock 1 2 1 3 |
Stock-Based Compensation and _2
Stock-Based Compensation and Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Payment Arrangement, Activity | September 30, 2023 December 31, 2022 Quantity Wtd-Avg (a) Quantity Wtd-Avg (a) Stock options — $ — 88 $ 30.63 Restricted stock units 2,148,409 60.64 1,863,481 66.87 Performance stock units 327,835 46.35 383,157 51.73 Market-based stock units 871,284 85.11 741,803 83.24 ____________________ (a) Represents the weighted-average exercise price for stock options, weighted-average grant date fair value for RSUs, weighted-average grant date fair value for PSUs where the grant date has been achieved, the price of CEI common stock as of the balance sheet date for PSUs where a grant date has not been achieved, and the grant date fair value of the MSUs determined using the Monte-Carlo simulation model. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Income Tax Allocation Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Income (loss) from continuing operations before income taxes $ 139 $ 61 $ (20) $ (409) Benefit (provision) for income taxes (47) (8) 904 47 Effective tax rate 33.8 % 13.1 % * 11.5 % ____________________ * Not meaningful. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Data for Reportable Segments | The following table sets forth certain information regarding our properties (listed by segment in which each property is reported) as of September 30, 2023: Las Vegas Regional Managed and Branded Caesars Palace Las Vegas Caesars Atlantic City Harveys Lake Tahoe Managed The Cromwell Caesars Virginia (b) Horseshoe Baltimore Harrah’s Ak-Chin Flamingo Las Vegas Circus Circus Reno Horseshoe Black Hawk Harrah’s Cherokee Harrah’s Las Vegas Eldorado Gaming Scioto Downs Horseshoe Bossier City Harrah’s Cherokee Valley River Horseshoe Las Vegas Eldorado Resort Casino Reno Horseshoe Council Bluffs Harrah’s Resort Southern California The LINQ Hotel & Casino Grand Victoria Casino Horseshoe Hammond Caesars Windsor Paris Las Vegas Harrah’s Atlantic City Horseshoe Indianapolis Caesars Dubai (d) Planet Hollywood Resort & Casino Harrah’s Columbus Nebraska (c) Horseshoe Lake Charles Branded Rio All-Suite Hotel & Casino (a) Harrah’s Council Bluffs Horseshoe St. Louis Caesars Southern Indiana Harrah’s Gulf Coast Horseshoe Tunica Harrah’s Northern California Caesars Digital Harrah’s Hoosier Park Racing & Casino Isle Casino Bettendorf Caesars Digital Harrah’s Joliet Isle of Capri Casino Boonville Harrah’s Lake Tahoe Isle of Capri Casino Lula Harrah’s Laughlin Isle Casino Waterloo Harrah’s Metropolis Lady Luck Casino - Black Hawk Harrah’s New Orleans Silver Legacy Resort Casino Harrah’s North Kansas City Trop Casino Greenville Harrah’s Philadelphia Tropicana Atlantic City Harrah’s Pompano Beach Tropicana Laughlin Hotel & Casino ____________________ (a) As of October 2, 2023, Caesars no longer operates the Rio All-Suite Hotel & Casino and all operations were assumed by the lessor. (b) Temporary gaming facility opened on May 15, 2023. The construction of the permanent facility of Caesars Virginia is expected to be completed in late 2024. (c) Temporary gaming facility opened on June 12, 2023. The construction of the permanent facility of Harrah’s Columbus Nebraska is expected to be completed in the first half of 2024. (d) On November 16, 2023, the Company expects to exit the management agreement associated with Caesars Dubai and the property will be renamed under new ownership. The following table sets forth, for the periods indicated, certain operating data for the Company’s four reportable segments, in addition to Corporate and Other: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Las Vegas: Net revenues $ 1,120 $ 1,077 $ 3,379 $ 3,133 Adjusted EBITDA 482 480 1,527 1,427 Regional: Net revenues 1,565 1,530 4,415 4,348 Adjusted EBITDA 575 570 1,531 1,542 Caesars Digital: Net revenues 215 212 669 311 Adjusted EBITDA 2 (38) 9 (661) Managed and Branded: Net revenues 98 70 239 210 Adjusted EBITDA 20 22 58 64 Corporate and Other: Net revenues (4) (2) 1 (2) Adjusted EBITDA (36) (22) (117) (86) Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Net income (loss) attributable to Caesars $ 74 $ 52 $ 858 $ (751) Net income attributable to noncontrolling interests 18 1 26 3 Net loss from discontinued operations — — — 386 (Benefit) provision for income taxes 47 8 (904) (47) Other (income) loss (a) 1 (4) (5) (53) Loss on extinguishment of debt 3 33 200 33 Interest expense, net 581 569 1,761 1,680 Depreciation and amortization 320 304 943 910 Transaction costs and other, net (b) (27) 23 47 48 Stock-based compensation expense 26 26 82 77 Adjusted EBITDA $ 1,043 $ 1,012 $ 3,008 $ 2,286 Adjusted EBITDA by Segment: Las Vegas $ 482 $ 480 $ 1,527 $ 1,427 Regional 575 570 1,531 1,542 Caesars Digital 2 (38) 9 (661) Managed and Branded 20 22 58 64 Corporate and Other (36) (22) (117) (86) ____________________ (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 changes in the fair value of a disputed claim liability. (b) Transaction costs and other, net for the three and nine months ended September 30, 2023 primarily includes (i) net proceeds received in exchange for participation rights in a potential insurance recovery, (ii) proceeds received for the termination of the Caesars Dubai management agreement and (iii) costs related to non-cash losses on the write down and disposal of assets, pre-opening costs in connection with new temporary facility openings and non-cash changes in equity method investments. Transaction costs and other, net for the three and nine months ended September 30, 2022 primarily represents professional services for integration activities and various contract exit or termination costs partially offset by a gain resulting from insurance proceeds received in excess of the respective carrying value of damaged assets associated with the Lake Charles property. |
Schedule of Balance Sheet Information for Reportable Segments | Total Assets - By Segment (In millions) September 30, 2023 December 31, 2022 Las Vegas $ 23,965 $ 23,547 Regional 15,206 14,908 Caesars Digital 1,086 1,200 Managed and Branded 206 140 Corporate and Other (a) (7,234) (6,268) Total $ 33,229 $ 33,527 ____________________ (a) Includes eliminations of transactions among segments, to reconcile to the Company’s consolidated results. |
Organization and Description _3
Organization and Description of Business - Narrative (Details) | Sep. 30, 2023 state hotel_room machine game property |
Variable Interest Entity [Line Items] | |
Total number of properties | property | 53 |
Number of slot machines and video lottery terminals | machine | 52,500 |
Number of table games | game | 2,700 |
Number of room in hotel | hotel_room | 46,900 |
Domestic Gaming and Hospitality Properties | |
Variable Interest Entity [Line Items] | |
Number of states in which the company operates | 18 |
Sports Wagering | |
Variable Interest Entity [Line Items] | |
Number of states in which the company operates | 30 |
Mobile Sports Betting | |
Variable Interest Entity [Line Items] | |
Number of states in which the company operates | 24 |
Online Real Money Gaming Businesses | |
Variable Interest Entity [Line Items] | |
Number of states in which the company operates | 6 |
Organization and Description _4
Organization and Description of Business - Schedule of Recently Completed Divestitures of Our Properties (Details) - Discontinued Operations, Disposed of by Sale $ in Millions, £ in Billions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jul. 01, 2022 GBP (£) | |
Baton Rouge | |||
Variable Interest Entity [Line Items] | |||
Net revenues | $ 0 | $ 6 | |
Net loss | 0 | (1) | |
William Hill International | |||
Variable Interest Entity [Line Items] | |||
Discontinued operations | £ | £ 2 | ||
Net revenues | 0 | 820 | |
Net loss | $ 0 | $ (448) |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 10, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | |||||
Advertising expense | $ 65 | $ 114 | $ 185 | $ 490 | |
Horseshoe Baltimore | |||||
Business Acquisition [Line Items] | |||||
Percentage of outstanding shares owned | 24.20% | ||||
Total purchase consideration | $ 66 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Interest expense | $ 597 | $ 580 | $ 1,798 | $ 1,707 |
Capitalized interest | (13) | (8) | (27) | (19) |
Interest income | (3) | (3) | (10) | (8) |
Total interest expense, net | $ 581 | $ 569 | $ 1,761 | $ 1,680 |
Investments in and Advances t_2
Investments in and Advances to Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Mar. 14, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Investment in Unconsolidated Affiliates | ||||
Investment in joint venture | $ 91 | $ 94 | ||
Pompano Joint Venture | ||||
Investment in Unconsolidated Affiliates | ||||
Percentage of equity stake | 50% | |||
Investment in joint venture | $ 80 | $ 80 | ||
Neo Games S.A | ||||
Investment in Unconsolidated Affiliates | ||||
Proceeds from sale of equity securities | $ 26 | |||
Equity securities, loss | $ 34 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | $ 18,487 | $ 18,487 | $ 17,591 | ||
Less: accumulated depreciation | (3,787) | (3,787) | (2,993) | ||
Total property and equipment, net | 14,700 | 14,700 | 14,598 | ||
Depreciation expense | 284 | $ 260 | 835 | $ 758 | |
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 2,088 | 2,088 | 2,092 | ||
Buildings, riverboats, and leasehold and land improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 13,365 | 13,365 | 13,094 | ||
Furniture, fixtures, and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | 2,352 | 2,352 | 2,054 | ||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment | $ 682 | $ 682 | $ 351 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, net - Schedule of Changes in Carrying Value of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Amortizing Intangible Assets | ||||
Finite-lived intangible assets, net, beginning balance | $ 1,060 | |||
Amortization expense | $ (36) | $ (44) | (108) | $ (152) |
Acquisition of gaming rights and trademarks | 30 | |||
Finite-lived intangible assets, net, ending balance | 982 | 982 | ||
Goodwill | ||||
Goodwill, gross, beginning balance | 11,004 | |||
Acquisition of gaming rights and trademarks | 0 | |||
Goodwill, gross, ending balance | 11,004 | 11,004 | ||
Other | ||||
Indefinite-lived intangible assets (excluding goodwill), beginning balance | 3,654 | |||
Acquisition of gaming rights and trademarks | 4 | |||
Indefinite-lived intangible assets (excluding goodwill), ending balance | $ 3,658 | $ 3,658 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, net - Schedule of Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Gross Carrying Amount | $ 1,502 | $ 1,472 |
Accumulated Amortization | (520) | (412) |
Net Carrying Amount | 982 | 1,060 |
Non-amortizing intangible assets other than Goodwill | 3,658 | 3,654 |
Total amortizing and non-amortizing intangible assets other than Goodwill, net | 4,640 | 4,714 |
Trademarks | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Non-amortizing intangible assets other than Goodwill | 1,998 | 1,998 |
Gaming rights | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Non-amortizing intangible assets other than Goodwill | 1,137 | 1,133 |
Caesars Rewards | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Non-amortizing intangible assets other than Goodwill | 523 | 523 |
Customer relationships | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Gross Carrying Amount | 587 | 587 |
Accumulated Amortization | (339) | (276) |
Net Carrying Amount | $ 248 | 311 |
Customer relationships | Minimum | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Useful Life | 3 years | |
Customer relationships | Maximum | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Useful Life | 7 years | |
Gaming rights and other | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Gross Carrying Amount | $ 242 | 212 |
Accumulated Amortization | (25) | (16) |
Net Carrying Amount | $ 217 | 196 |
Gaming rights and other | Minimum | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Useful Life | 10 years | |
Gaming rights and other | Maximum | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Useful Life | 34 years | |
Trademarks | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Useful Life | 15 years | |
Gross Carrying Amount | $ 313 | 313 |
Accumulated Amortization | (87) | (73) |
Net Carrying Amount | $ 226 | 240 |
Reacquired rights | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Useful Life | 24 years | |
Gross Carrying Amount | $ 250 | 250 |
Accumulated Amortization | (25) | (17) |
Net Carrying Amount | $ 225 | 233 |
Technology | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Useful Life | 6 years | |
Gross Carrying Amount | $ 110 | 110 |
Accumulated Amortization | (44) | (30) |
Net Carrying Amount | $ 66 | $ 80 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 36 | $ 44 | $ 108 | $ 152 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, net - Schedule of Estimated Annual Amortization Expense (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remaining 2023 | $ 36 |
2024 | 130 |
2025 | 122 |
2026 | 122 |
2027 | 80 |
2028 | $ 43 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value Recurring Basis - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Marketable securities | $ 2 | $ 4 |
Total assets at fair value | 2 | 4 |
Level 1 | ||
Assets: | ||
Marketable securities | 2 | 2 |
Total assets at fair value | 2 | 2 |
Level 2 | ||
Assets: | ||
Marketable securities | 0 | 2 |
Total assets at fair value | 0 | 2 |
Level 3 | ||
Assets: | ||
Marketable securities | 0 | 0 |
Total assets at fair value | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Derivative instruments - FX forward | Not Designated as Hedging Instrument | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unrealized gain on derivatives | $ 76 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 4,667 | $ 3,635 | $ 3,751 | $ 3,711 | $ 3,846 | $ 4,541 |
Other comprehensive income (loss) before reclassifications | (1) | 0 | 6 | 111 | (42) | (28) |
Amounts reclassified from accumulated other comprehensive income | 2 | 6 | 8 | |||
Total other comprehensive income (loss), net of tax | (1) | 0 | 6 | 113 | (36) | (20) |
Ending balance | 4,742 | 4,667 | 3,635 | 3,892 | 3,711 | 3,846 |
Accumulated Other Comprehensive Income (Loss) | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | 98 | 98 | 92 | (20) | 16 | 36 |
Ending balance | 97 | 98 | 98 | 93 | (20) | 16 |
Unrealized Net Gains on Derivative Instruments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | 94 | 94 | 94 | 93 | 86 | 73 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 1 | 1 | 5 |
Amounts reclassified from accumulated other comprehensive income | 2 | 6 | 8 | |||
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 3 | 7 | 13 |
Ending balance | 94 | 94 | 94 | 96 | 93 | 86 |
Foreign Currency Translation Adjustments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | 0 | 1 | (1) | (113) | (69) | (36) |
Other comprehensive income (loss) before reclassifications | 0 | (1) | 2 | 110 | (44) | (33) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | |||
Total other comprehensive income (loss), net of tax | 0 | (1) | 2 | 110 | (44) | (33) |
Ending balance | 0 | 0 | 1 | (3) | (113) | (69) |
Other | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Beginning balance | 4 | 3 | (1) | 0 | (1) | (1) |
Other comprehensive income (loss) before reclassifications | (1) | 1 | 4 | 0 | 1 | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | |||
Total other comprehensive income (loss), net of tax | (1) | 1 | 4 | 0 | 1 | 0 |
Ending balance | $ 3 | $ 4 | $ 3 | $ 0 | $ 0 | $ (1) |
Litigation, Commitments and C_2
Litigation, Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 26, 2023 lawsuit | Sep. 30, 2023 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Apr. 30, 2020 USD ($) hotel_room | |
Loss Contingencies [Line Items] | |||||
Self insurance reserve | $ 208 | $ 203 | |||
Atlantic City | |||||
Loss Contingencies [Line Items] | |||||
Escrow deposit | $ 400 | ||||
Capital expenditure term | 3 years | ||||
Restricted cash | 21 | 118 | |||
Casino Operating Contract and Ground Lease for Harrah’s New Orleans | |||||
Loss Contingencies [Line Items] | |||||
Net investment in lease | 430 | $ 325 | |||
Number of hotel rooms in new tower | hotel_room | 340 | ||||
Capital expenditures | 239 | ||||
Sports Sponsorship and Partnership Obligations | |||||
Loss Contingencies [Line Items] | |||||
Indefinite-lived license agreements | 639 | $ 898 | |||
Insurance Carrier | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought, value | $ 2,000 | ||||
Cybersecurity Incident | Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Number of putative class action lawsuits filed | lawsuit | 13 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Feb. 06, 2023 | Dec. 31, 2022 | Sep. 24, 2021 | Jul. 06, 2020 |
Long-term debt | |||||
Interest rate | 4.30% | ||||
Total debt | $ 12,455 | ||||
Current portion of long-term debt | (65) | $ (108) | |||
Long-term debt | 12,230 | 12,659 | |||
Face Value | |||||
Long-term debt | |||||
Special Improvement District Bonds | 45 | ||||
Long-term notes and other payables | 2 | ||||
Total debt | 12,455 | ||||
Current portion of long-term debt | (65) | ||||
Deferred finance charges associated with the CEI Revolving Credit Facility | 0 | ||||
Long-term debt | 12,390 | ||||
Fair value | 12,167 | ||||
Book Value | |||||
Long-term debt | |||||
Special Improvement District Bonds | 45 | 47 | |||
Long-term notes and other payables | 2 | 2 | |||
Total debt | 12,312 | 12,787 | |||
Current portion of long-term debt | (65) | (108) | |||
Deferred finance charges associated with the CEI Revolving Credit Facility | (17) | (20) | |||
Long-term debt | 12,230 | 12,659 | |||
Unamortized discounts and deferred finance charges | 160 | 318 | |||
CEI Revolving Credit Facility | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term line of credit | 0 | ||||
CEI Revolving Credit Facility | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term line of credit | 0 | 0 | |||
CEI Term Loan A | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | 722 | ||||
CEI Term Loan A | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | 719 | 747 | |||
CEI Term Loan B | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | 2,487 | ||||
CEI Term Loan B | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 2,437 | 0 | |||
CRC Senior Secured Notes | Senior Notes | |||||
Long-term debt | |||||
Long-term debt, gross | $ 1,000 | ||||
Interest rate | 5.75% | 5.75% | |||
CRC Senior Secured Notes | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 989 | ||||
CRC Senior Secured Notes | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 982 | 979 | |||
CEI Senior Secured Notes due 2025 | Senior Notes | |||||
Long-term debt | |||||
Long-term debt, gross | $ 3,400 | ||||
Interest rate | 6.25% | 6.25% | |||
CEI Senior Secured Notes due 2025 | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 3,399 | ||||
CEI Senior Secured Notes due 2025 | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 3,370 | 3,360 | |||
CEI Senior Secured Notes due 2030 | Senior Notes | |||||
Long-term debt | |||||
Long-term debt, gross | $ 2,000 | ||||
Interest rate | 7% | 7% | |||
CEI Senior Secured Notes due 2030 | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 2,000 | ||||
CEI Senior Secured Notes due 2030 | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | 1,978 | 0 | |||
Baltimore Revolving Credit Facility | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | 0 | ||||
Baltimore Revolving Credit Facility | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | 0 | 0 | |||
Baltimore Term Loan | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | 0 | ||||
Baltimore Term Loan | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | 0 | 262 | |||
Convention Center Mortgage Loan | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | 0 | ||||
Convention Center Mortgage Loan | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | 0 | 400 | |||
CRC Incremental Term Loan | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | 0 | ||||
CRC Incremental Term Loan | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | 0 | 972 | |||
CRC Term Loan | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | 0 | ||||
CRC Term Loan | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 0 | 3,243 | |||
CEI Senior Notes due 2027 | Senior Notes | |||||
Long-term debt | |||||
Long-term debt, gross | $ 1,800 | ||||
Interest rate | 8.125% | 8.125% | |||
CEI Senior Notes due 2027 | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 1,611 | ||||
CEI Senior Notes due 2027 | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 1,592 | 1,589 | |||
CEI Senior Notes due 2029 | Senior Notes | |||||
Long-term debt | |||||
Long-term debt, gross | $ 1,200 | ||||
Interest rate | 4.625% | 4.625% | |||
CEI Senior Notes due 2029 | Senior Notes | Face Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 1,200 | ||||
CEI Senior Notes due 2029 | Senior Notes | Book Value | |||||
Long-term debt | |||||
Long-term debt, gross | $ 1,187 | $ 1,186 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-Term Debt (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Annual maturities of long-term debt | |
Remaining 2023 | $ 16 |
2024 | 65 |
2025 | 4,453 |
2026 | 65 |
2027 | 1,676 |
Thereafter | 6,180 |
Total debt | 12,455 |
Estimated interest payments | |
Remaining 2023 | 100 |
2024 | 870 |
2025 | 830 |
2026 | 540 |
2027 | 530 |
Thereafter | 820 |
Debt estimate interest payment, due | 3,690 |
Total debt service obligation | |
Remaining 2023 | 116 |
2024 | 935 |
2025 | 5,283 |
2026 | 605 |
2027 | 2,206 |
Thereafter | 7,000 |
Debt service obligation | $ 16,145 |
Long-Term Debt - CEI Term Loans
Long-Term Debt - CEI Term Loans and CEI Revolving Credit Facility (Narrative) (Details) | Feb. 06, 2023 USD ($) stepdown | Oct. 05, 2022 USD ($) stepdown | Sep. 30, 2023 USD ($) | Jul. 20, 2020 USD ($) |
Long-term debt | ||||
Interest rate | 4.30% | |||
Senior Notes | CEI Term Loan B | ||||
Long-term debt | ||||
Debt instrument, face amount | $ 2,500,000,000 | |||
Number of stepdowns | stepdown | 1 | |||
Leverage ratio stepdown | 0.25% | |||
Percentage of original principal amount amortization | 0.25% | |||
Percentage of principal amount issued | 99% | |||
Senior Notes | CEI Term Loan B | SOFR | Component One | Minimum | ||||
Long-term debt | ||||
Spread on variable rate | 0.50% | |||
Senior Notes | CEI Term Loan B | SOFR | Component Two | ||||
Long-term debt | ||||
Spread on variable rate | 1% | |||
Senior Notes | CEI Term Loan B | Fed Funds Effective Rate Overnight Index Swap Rate | Component Two | ||||
Long-term debt | ||||
Spread on variable rate | 0.50% | |||
Senior Notes | CEI Term Loan B | Base rate | ||||
Long-term debt | ||||
Spread on variable rate | 2.25% | |||
Senior Notes | CEI Term Loan B | Applicable Margin | ||||
Long-term debt | ||||
Spread on variable rate | 3.25% | |||
CEI Revolving Credit Facility | ||||
Long-term debt | ||||
Available borrowing capacity | $ 2,100,000,000 | |||
CEI Revolving Credit Facility | Line of Credit | ||||
Long-term debt | ||||
Credit facility | $ 2,250,000,000 | |||
Amount outstanding | 71,000,000 | |||
CEI Revolving Credit Facility, Permitted Use Reserves | ||||
Long-term debt | ||||
Accordion feature | $ 40,000,000 | |||
CEI Revolving Credit Facility, Regulatory Purpose | ||||
Long-term debt | ||||
Amount outstanding | $ 46,000,000 | |||
Line of Credit | ||||
Long-term debt | ||||
Line of credit facility, commitment fee percentage | 0.35% | |||
Line of Credit | SOFR | ||||
Long-term debt | ||||
Spread on variable rate | 2.25% | |||
Line of Credit | SOFR | Component One | ||||
Long-term debt | ||||
Spread on variable rate | 0.10% | |||
Line of Credit | SOFR | Component One | Minimum | ||||
Long-term debt | ||||
Spread on variable rate | 0% | |||
Line of Credit | SOFR | Component Two | ||||
Long-term debt | ||||
Spread on variable rate | 1% | |||
Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate | Component Two | ||||
Long-term debt | ||||
Spread on variable rate | 0.50% | |||
Line of Credit | Base rate | ||||
Long-term debt | ||||
Spread on variable rate | 1.25% | |||
Line of Credit | Secured Debt | ||||
Long-term debt | ||||
Debt instrument, face amount | $ 750,000,000 | |||
Interest rate | 1.25% | |||
Number of stepdowns | stepdown | 3 | |||
Leverage ratio stepdown | 0.25% | |||
Line of Credit | Revolving Credit Facility | ||||
Long-term debt | ||||
Credit facility | $ 2,250,000,000 | |||
Number of stepdowns | stepdown | 3 | |||
Leverage ratio stepdown | 0.05% | |||
Line of Credit | Letter of Credit | ||||
Long-term debt | ||||
Credit facility | $ 388,000,000 |
Long-Term Debt - CRC Senior Sec
Long-Term Debt - CRC Senior Secured Notes due 2025 (Narrative) (Details) - USD ($) $ in Billions | Sep. 30, 2023 | Jul. 06, 2020 |
Long-term debt | ||
Interest rate | 4.30% | |
CRC Senior Secured Notes | Senior Notes | ||
Long-term debt | ||
Long-term debt, gross | $ 1 | |
Interest rate | 5.75% | 5.75% |
Long-Term Debt - CEI Senior Sec
Long-Term Debt - CEI Senior Secured Notes due 2025 (Narrative) (Details) - USD ($) $ in Millions | Apr. 05, 2023 | Sep. 30, 2023 | Jul. 06, 2020 |
Long-term debt | |||
Interest rate | 4.30% | ||
CEI Senior Secured Notes due 2025 | Senior Notes | |||
Long-term debt | |||
Long-term debt, gross | $ 3,400 | ||
Interest rate | 6.25% | 6.25% | |
Repayments of debt | $ 1 |
Long-Term Debt - CEI Senior S_2
Long-Term Debt - CEI Senior Secured Notes due 2030 (Narrative) (Details) - USD ($) $ in Billions | Sep. 30, 2023 | Feb. 06, 2023 |
Long-term debt | ||
Interest rate | 4.30% | |
CEI Senior Secured Notes due 2030 | Senior Notes | ||
Long-term debt | ||
Long-term debt, gross | $ 2 | |
Interest rate | 7% | 7% |
Long-Term Debt - Baltimore Term
Long-Term Debt - Baltimore Term Loan and Baltimore Revolving Credit Facility (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jul. 17, 2023 | Jul. 07, 2023 | Apr. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Long-term debt | |||||||
Loss on extinguishment | $ 3 | $ 33 | $ 200 | $ 33 | |||
Baltimore Term Loan | Secured Debt | |||||||
Long-term debt | |||||||
Loss on extinguishment | $ 3 | ||||||
Baltimore Term Loan | Secured Debt | LIBOR | |||||||
Long-term debt | |||||||
Spread on variable rate | 4% | ||||||
Baltimore Revolving Credit Facility | Revolving Credit Facility | SOFR | |||||||
Long-term debt | |||||||
Spread on variable rate | 4% | ||||||
Horseshoe Baltimore | |||||||
Long-term debt | |||||||
Subsequent acquisition percentage | 24.20% | ||||||
Horseshoe Baltimore | Baltimore Revolving Credit Facility | Revolving Credit Facility | |||||||
Long-term debt | |||||||
Horseshoe baltimore’s senior secured revolving credit facility | $ 10 |
Long-Term Debt - Convention Cen
Long-Term Debt - Convention Center Mortgage Loan (Narrative) (Details) - USD ($) $ in Millions | May 01, 2023 | Sep. 18, 2020 | Sep. 30, 2023 |
Long-term debt | |||
Interest rate | 4.30% | ||
Convention Center Mortgage Loan | VICI Properties | |||
Long-term debt | |||
Interest rate | 7.70% | ||
Debt instrument, interest rate, maximum | 8.30% | ||
Convention Center Mortgage Loan | Senior Notes | |||
Long-term debt | |||
Prepayment of debt | $ 400 | ||
Convention Center Mortgage Loan | Estimate of Fair Value Measurement | Senior Notes | |||
Long-term debt | |||
Long-term debt, gross | $ 0 | ||
VICI Properties | Convention Center Mortgage Loan | Senior Notes | |||
Long-term debt | |||
Long-term debt, term | 5 years | ||
VICI Properties | Convention Center Mortgage Loan | Estimate of Fair Value Measurement | Senior Notes | |||
Long-term debt | |||
Long-term debt, gross | $ 400 |
Long-Term Debt - CRC Term Loan
Long-Term Debt - CRC Term Loan and CRC Incremental Term Loan (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Feb. 06, 2023 | Dec. 22, 2017 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Long-term debt | ||||||
Loss on extinguishment | $ 3 | $ 33 | $ 200 | $ 33 | ||
CRC Term Loan | Base rate | ||||||
Long-term debt | ||||||
Spread on variable rate | 1.75% | |||||
CRC Term Loan | LIBOR | ||||||
Long-term debt | ||||||
Spread on variable rate | 2.75% | |||||
CRC Incremental Term Loan | Base rate | ||||||
Long-term debt | ||||||
Spread on variable rate | 2.50% | |||||
CRC Incremental Term Loan | LIBOR | ||||||
Long-term debt | ||||||
Spread on variable rate | 3.50% | |||||
CRC Credit Agreement | Base rate | ||||||
Long-term debt | ||||||
Spread on variable rate | 0% | |||||
CRC Credit Agreement | Fed Funds Effective Rate Overnight Index Swap Rate | ||||||
Long-term debt | ||||||
Spread on variable rate | 0.50% | |||||
CRC Credit Agreement | LIBOR | ||||||
Long-term debt | ||||||
Spread on variable rate | 1% | |||||
Line of Credit | CRC Term Loan | ||||||
Long-term debt | ||||||
Debt instrument, face amount | $ 4,700 | |||||
Debt instrument, term | 7 years | |||||
Repayments of debt | $ 3,400 | |||||
Line of Credit | CRC Incremental Term Loan | ||||||
Long-term debt | ||||||
Debt instrument, face amount | $ 1,800 | |||||
Debt instrument, term | 5 years | |||||
Repayments of debt | 1,000 | |||||
Line of Credit | CRC Term Loan and CRC Incremental Term Loan | ||||||
Long-term debt | ||||||
Loss on extinguishment | $ 197 |
Long-Term Debt - CEI Senior Not
Long-Term Debt - CEI Senior Notes due 2027 (Narrative) (Details) - USD ($) $ in Billions | Sep. 30, 2023 | Jul. 06, 2020 |
Long-term debt | ||
Interest rate | 4.30% | |
CEI Senior Notes due 2027 | Senior Notes | ||
Long-term debt | ||
Long-term debt, gross | $ 1.8 | |
Interest rate | 8.125% | 8.125% |
Long-Term Debt - CEI Senior N_2
Long-Term Debt - CEI Senior Notes due 2029 (Narrative) (Details) - USD ($) $ in Billions | Sep. 30, 2023 | Sep. 24, 2021 |
Long-term debt | ||
Interest rate | 4.30% | |
CEI Senior Notes due 2029 | Senior Notes | ||
Long-term debt | ||
Long-term debt, gross | $ 1.2 | |
Interest rate | 4.625% | 4.625% |
Long-Term Debt - Debt Covenant
Long-Term Debt - Debt Covenant Compliance (Narrative) (Details) - CEI Revolving Credit Facility and CEI Term Loan A | Sep. 30, 2023 |
Period One | |
Long-term debt | |
Leverage ratio, maximum | 7.25 |
Debt instrument, covenant, fixed charge coverage ratio, minimum | 1.75 |
Period Two | |
Long-term debt | |
Leverage ratio, maximum | 6.50 |
Debt instrument, covenant, fixed charge coverage ratio, minimum | 2 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Net Revenues Disaggregated by Type of Revenue and Reportable Segment and Accounts Receivable, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Net revenues | $ 2,994 | $ 2,887 | $ 8,703 | $ 8,000 | |
Accounts receivable, net | 555 | 555 | $ 611 | ||
Casino | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 1,620 | 1,605 | 4,789 | 4,446 | |
Accounts receivable, net | 215 | 215 | 259 | ||
Food and beverage | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 443 | 411 | 1,305 | 1,172 | |
Hotel | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 553 | 544 | 1,581 | 1,446 | |
Food and beverage and hotel | |||||
Disaggregation of Revenue [Line Items] | |||||
Accounts receivable, net | 137 | 137 | 144 | ||
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 378 | 327 | 1,028 | 936 | |
Accounts receivable, net | 203 | 203 | $ 208 | ||
Corporate and Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | (4) | (2) | 1 | (2) | |
Corporate and Other | Casino | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 0 | (1) | (2) | (2) | |
Corporate and Other | Food and beverage | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 0 | 0 | 0 | 0 | |
Corporate and Other | Hotel | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 0 | 0 | 0 | 0 | |
Corporate and Other | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | (4) | (1) | 3 | 0 | |
Las Vegas | Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 1,120 | 1,077 | 3,379 | 3,133 | |
Las Vegas | Operating Segment | Casino | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 323 | 323 | 945 | 929 | |
Las Vegas | Operating Segment | Food and beverage | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 285 | 264 | 868 | 775 | |
Las Vegas | Operating Segment | Hotel | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 341 | 335 | 1,067 | 959 | |
Las Vegas | Operating Segment | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 171 | 155 | 499 | 470 | |
Regional | Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 1,565 | 1,530 | 4,415 | 4,348 | |
Regional | Operating Segment | Casino | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 1,111 | 1,096 | 3,247 | 3,264 | |
Regional | Operating Segment | Food and beverage | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 158 | 147 | 437 | 397 | |
Regional | Operating Segment | Hotel | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 212 | 209 | 514 | 487 | |
Regional | Operating Segment | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 84 | 78 | 217 | 200 | |
Caesars Digital | Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 215 | 212 | 669 | 311 | |
Caesars Digital | Operating Segment | Casino | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 186 | 187 | 599 | 255 | |
Caesars Digital | Operating Segment | Food and beverage | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 0 | 0 | 0 | 0 | |
Caesars Digital | Operating Segment | Hotel | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 0 | 0 | 0 | 0 | |
Caesars Digital | Operating Segment | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 29 | 25 | 70 | 56 | |
Managed and Branded | Operating Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 98 | 70 | 239 | 210 | |
Managed and Branded | Operating Segment | Casino | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 0 | 0 | 0 | 0 | |
Managed and Branded | Operating Segment | Food and beverage | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 0 | 0 | 0 | 0 | |
Managed and Branded | Operating Segment | Hotel | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 0 | 0 | 0 | 0 | |
Managed and Branded | Operating Segment | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | $ 98 | $ 70 | $ 239 | $ 210 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Activity Related to Contract and Contract-Related Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Outstanding Chip Liability | ||
Disaggregation of Revenue [Line Items] | ||
Contract and contract-related liabilities, beginning balance | $ 45 | $ 48 |
Contract and contract-related liabilities, ending balance | 38 | 40 |
Increase / (decrease) | (7) | (8) |
Caesars Rewards | ||
Disaggregation of Revenue [Line Items] | ||
Contract and contract-related liabilities, beginning balance | 87 | 91 |
Contract and contract-related liabilities, ending balance | 93 | 95 |
Increase / (decrease) | 6 | 4 |
Customer Deposits and Other Deferred Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Contract and contract-related liabilities, beginning balance | 693 | 560 |
Contract and contract-related liabilities, ending balance | 661 | 662 |
Increase / (decrease) | $ (32) | $ 102 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lessor, Lease, Description [Line Items] | ||||
Net revenues | $ 2,994 | $ 2,887 | $ 8,703 | $ 8,000 |
Variable lease income | 14 | 17 | 44 | 45 |
Hotel | ||||
Lessor, Lease, Description [Line Items] | ||||
Net revenues | 553 | 544 | 1,581 | 1,446 |
Food and beverage | ||||
Lessor, Lease, Description [Line Items] | ||||
Net revenues | 443 | 411 | 1,305 | 1,172 |
Food and beverage | Convention Arrangements | ||||
Lessor, Lease, Description [Line Items] | ||||
Net revenues | 5 | 4 | 31 | 23 |
Real Estate | ||||
Lessor, Lease, Description [Line Items] | ||||
Net revenues | $ 42 | $ 42 | $ 122 | $ 125 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Reconciliation of the Numerators and Denominators of the Basic and Diluted Net Income (Loss) Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) from continuing operations attributable to Caesars, net of income taxes | $ 74 | $ 52 | $ 858 | $ (365) |
Discontinued operations, net of income taxes | 0 | 0 | 0 | (386) |
Net income (loss) attributable to Caesars | $ 74 | $ 52 | $ 858 | $ (751) |
Shares outstanding: | ||||
Weighted average shares outstanding – basic (in shares) | 215 | 214 | 215 | 214 |
Effect of dilutive securities: | ||||
Stock-based compensation awards (in shares) | 1 | 1 | 1 | 0 |
Weighted average shares outstanding - diluted (in shares) | 216 | 215 | 216 | 214 |
Net loss per share - Basic | ||||
Basic income (loss) per share from continuing operations (in dollars per share) | $ 0.34 | $ 0.24 | $ 3.99 | $ (1.70) |
Basic loss per share from discontinued operations (in dollars per share) | 0 | 0 | 0 | (1.80) |
Basic income (loss) per share (in dollars per share) | 0.34 | 0.24 | 3.99 | (3.50) |
Net loss per share - Diluted | ||||
Diluted income (loss) per share from continuing operations (in dollars per share) | 0.34 | 0.24 | 3.97 | (1.70) |
Diluted loss per share from discontinued operations (in dollar per shares) | 0 | 0 | 0 | (1.80) |
Diluted income (loss) per share (in dollars per share) | $ 0.34 | $ 0.24 | $ 3.97 | $ (3.50) |
Earnings per Share - Schedule_2
Earnings per Share - Schedule of Weighted-Average Number of Anti-Dilutive Shares Excluded from the Calculation of Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Total anti-diluted common stock (in shares) | 1 | 2 | 1 | 3 |
Stock-based compensation awards | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Total anti-diluted common stock (in shares) | 1 | 2 | 1 | 3 |
Stock-Based Compensation and _3
Stock-Based Compensation and Stockholders' Equity - Stock-Based Awards (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock compensation expense | $ 26 | $ 26 | $ 82 | $ 77 |
Stock-Based Compensation and _4
Stock-Based Compensation and Stockholders' Equity - 2015 Equity Incentive Plan (“2015 Plan”) (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted (in shares) | 0 |
Exercise of stock options (in shares) | 88 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 1,500,000 |
Equity instruments other than options, fair value | $ | $ 76 |
Share conversion (in shares) | 1 |
Vested (in shares) | 1,100,000 |
Restricted stock units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 1 year |
Restricted stock units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 192,000 |
Aggregate intrinsic value, nonvested | $ | $ 9 |
Vested (in shares) | 243,000 |
Performance Shares | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 2 years |
Percentage of target payout range | 0% |
Performance Shares | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Percentage of target payout range | 200% |
Market-based stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 379,000 |
Aggregate intrinsic value, nonvested | $ | $ 31 |
Vested (in shares) | 140,000 |
Market-based stock units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 1 year |
Percentage of target payout range | 0% |
Market-based stock units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Percentage of target payout range | 200% |
Stock-Based Compensation and _5
Stock-Based Compensation and Stockholders' Equity - Schedule of Share-Based Payment Arrangement, Activity (Details) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 0 | 88 |
Stock options weighted average exercise price (in dollars per share) | $ 0 | $ 30.63 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 2,148,409 | 1,863,481 |
Weighted average exercise price (in dollars per share) | $ 60.64 | $ 66.87 |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 327,835 | 383,157 |
Weighted average exercise price (in dollars per share) | $ 46.35 | $ 51.73 |
Market-based stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 871,284 | 741,803 |
Weighted average exercise price (in dollars per share) | $ 85.11 | $ 83.24 |
Stock-Based Compensation and _6
Stock-Based Compensation and Stockholders' Equity - Share Repurchase Program (Narrative) (Details) - Common Stock - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Nov. 30, 2018 | |
Class of Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 150 | ||
Treasury stock (in shares) | 223,823 | ||
Common stock acquired value | $ 9 | ||
Common stock acquired average price per share (in dollars per share) | $ 40.80 | ||
Common stock shares acquired (in shares) | 0 | 0 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) from continuing operations before income taxes | $ 139 | $ 61 | $ (20) | $ (409) |
Benefit (provision) for income taxes | $ (47) | $ (8) | $ 904 | $ 47 |
Effective tax rate | 33.80% | 13.10% | 11.50% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Income Tax Disclosure [Abstract] | |
Income tax benefit related to change in deferred tax asset valuation allowance | $ 940 |
Related Affiliates (Details)
Related Affiliates (Details) ft² in Thousands | 9 Months Ended | ||
Sep. 30, 2023 USD ($) ft² | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Related affiliates | |||
Accounts receivable, net | $ 555,000,000 | $ 611,000,000 | |
Accounts payable | 371,000,000 | 314,000,000 | |
Corporate Joint Venture | CVA Holdco, LLC | Eastern Bank of Cherokee Indians and Minority Partners | |||
Related affiliates | |||
Outstanding cash obligation | 24,000,000 | ||
Corporate Joint Venture | VIEs | CVA Holdco, LLC | |||
Related affiliates | |||
Related party transactions | $ 100,000,000 | ||
Variable interest entity, ownership percentage | 49.50% | ||
Gary Carano Family | Related Party | |||
Related affiliates | |||
Related party transactions | $ 0 | $ 0 | |
C. S. & Y. Associates | Related Party | |||
Related affiliates | |||
Area of real property leased | ft² | 30 | ||
Annual rent payable | $ 600,000 | ||
Accounts receivable, net | 0 | 0 | |
Accounts payable | $ 0 | $ 0 | |
REI | |||
Related affiliates | |||
Percentage of outstanding shares owned | 4% |
Segment Information - Narrative
Segment Information - Narrative (Details) ft² in Thousands | 9 Months Ended |
Sep. 30, 2023 ft² ft segment ballroom | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 4 |
Observation wheel height | ft | 550 |
Area of room | 300 |
Number of ballrooms | ballroom | 2 |
Conference Center | |
Segment Reporting Information [Line Items] | |
Area of real property leased | 550 |
Segment Information - Schedule
Segment Information - Schedule of Operating Data for Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 2,994 | $ 2,887 | $ 8,703 | $ 8,000 |
Adjusted EBITDA | 1,043 | 1,012 | 3,008 | 2,286 |
Operating Segment | Las Vegas | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,120 | 1,077 | 3,379 | 3,133 |
Adjusted EBITDA | 482 | 480 | 1,527 | 1,427 |
Operating Segment | Regional | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,565 | 1,530 | 4,415 | 4,348 |
Adjusted EBITDA | 575 | 570 | 1,531 | 1,542 |
Operating Segment | Caesars Digital | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 215 | 212 | 669 | 311 |
Adjusted EBITDA | 2 | (38) | 9 | (661) |
Operating Segment | Managed and Branded | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 98 | 70 | 239 | 210 |
Adjusted EBITDA | 20 | 22 | 58 | 64 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | (4) | (2) | 1 | (2) |
Adjusted EBITDA | $ (36) | $ (22) | $ (117) | $ (86) |
Segment Information - Schedul_2
Segment Information - Schedule of Adjusted EBITDA by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net income (loss) attributable to Caesars | $ 74 | $ 52 | $ 858 | $ (751) |
Net income attributable to noncontrolling interests | 18 | 1 | 26 | 3 |
Net loss from discontinued operations | 0 | 0 | 0 | 386 |
(Benefit) provision for income taxes | 47 | 8 | (904) | (47) |
Other (income) loss | 1 | (4) | (5) | (53) |
Loss on extinguishment of debt | 3 | 33 | 200 | 33 |
Interest expense, net | 581 | 569 | 1,761 | 1,680 |
Depreciation and amortization | 320 | 304 | 943 | 910 |
Transaction costs and other, net | (27) | 23 | 47 | 48 |
Stock-based compensation expense | 26 | 26 | 82 | 77 |
Adjusted EBITDA | 1,043 | 1,012 | 3,008 | 2,286 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (36) | (22) | (117) | (86) |
Las Vegas | Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 482 | 480 | 1,527 | 1,427 |
Regional | Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 575 | 570 | 1,531 | 1,542 |
Caesars Digital | Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 2 | (38) | 9 | (661) |
Managed and Branded | Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 20 | $ 22 | $ 58 | $ 64 |
Segment Information - Schedul_3
Segment Information - Schedule of Balance Sheet Information for Reportable Segment (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Assets | $ 33,229 | $ 33,527 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Assets | (7,234) | (6,268) |
Las Vegas | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 23,965 | 23,547 |
Regional | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 15,206 | 14,908 |
Caesars Digital | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,086 | 1,200 |
Managed and Branded | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 206 | $ 140 |