Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 01, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Entity Registrant Name | CAESARS ENTERTAINMENT Corp | |
Entity Central Index Key | 858,339 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 145,660,683 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Trading Symbol | CZR |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents ($1,015 and $1,060 attributable to our VIEs) | $ 1,444 | $ 1,338 |
Restricted cash ($4 and $4 attributable to our VIEs) | 57 | 59 |
Receivables, net ($129 and $123 attributable to our VIEs) | 201 | 193 |
Due from affiliates ($34 and $32 attributable to our VIEs) | 34 | 32 |
Prepayments and other current assets ($60 and $51 attributable to our VIEs) | 140 | 128 |
Inventories ($6 and $7 attributable to our VIEs) | 18 | 21 |
Total current assets | 1,894 | 1,771 |
Property and equipment, net ($2,597 and $2,620 attributable to our VIEs) | 7,560 | 7,598 |
Goodwill ($294 and $294 attributable to our VIEs) | 1,696 | 1,696 |
Intangible assets other than goodwill ($242 and $251 attributable to our VIEs) | 521 | 543 |
Restricted cash ($8 and $9 attributable to our VIEs) | 8 | 109 |
Deferred income taxes ($19 and $28 attributable to our VIEs) | 19 | 28 |
Deferred charges and other assets ($259 and $260 attributable to our VIEs) | 442 | 450 |
Total assets | 12,140 | 12,195 |
Current liabilities | ||
Accounts payable ($111 and $141 attributable to our VIEs) | 166 | 179 |
Due to affiliates ($15 and $15 attributable to our VIEs) | 16 | 16 |
Accrued expenses and other current liabilities ($219 and $272 attributable to our VIEs) | 547 | 588 |
Accrued restructuring and support expenses | 1,142 | 905 |
Interest payable ($52 and $37 attributable to our VIEs) | 195 | 131 |
Current portion of long-term debt ($39 and $70 attributable to our VIEs) | 150 | 187 |
Total current liabilities | 2,216 | 2,006 |
Long-term debt ($2,265 and $2,267 attributable to our VIEs) | 6,770 | 6,777 |
Deferred income taxes ($3 and $4 attributable to our VIEs) | 997 | 991 |
Deferred credits and other liabilities ($162 and $138 attributable to our VIEs) | 211 | 188 |
Total liabilities | $ 10,194 | $ 9,962 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Caesars stockholders’ equity | $ 673 | $ 987 |
Noncontrolling interests | 1,273 | 1,246 |
Total stockholders’ equity | 1,946 | 2,233 |
Total liabilities and stockholder's deficit | $ 12,140 | $ 12,195 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | $ 1,444 | $ 1,338 |
Restricted cash | 57 | 59 |
Receivables, net | 201 | 193 |
Due from affiliates | 34 | 32 |
Prepayments and other current assets | 140 | 128 |
Inventory | 18 | 21 |
Property and equipment, net | 7,560 | 7,598 |
Goodwill | 1,696 | 1,696 |
Intangible assets other than goodwill | 521 | 543 |
Restricted cash | 8 | 109 |
Deferred income taxes | 19 | 28 |
Deferred charges and other | 442 | 450 |
Accounts payable | 166 | 179 |
Due to affiliates | 16 | 16 |
Accrued expenses and other current liabilities | 547 | 588 |
Interest payable | 195 | 131 |
Current portion of long-term debt | 150 | 187 |
Long-term debt | 6,770 | 6,777 |
Deferred income taxes | 997 | 991 |
Deferred credits and other | 211 | 188 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash and cash equivalents | 1,015 | 1,060 |
Restricted cash | 4 | 4 |
Receivables, net | 129 | 123 |
Due from affiliates | 34 | 32 |
Prepayments and other current assets | 60 | 51 |
Inventory | 6 | 7 |
Property and equipment, net | 2,597 | 2,620 |
Goodwill | 294 | 294 |
Intangible assets other than goodwill | 242 | 251 |
Restricted cash | 8 | 9 |
Deferred income taxes | 19 | 28 |
Deferred charges and other | 259 | 260 |
Accounts payable | 111 | 141 |
Due to affiliates | 15 | 15 |
Accrued expenses and other current liabilities | 219 | 272 |
Interest payable | 52 | 37 |
Current portion of long-term debt | 39 | 70 |
Long-term debt | 2,265 | 2,267 |
Deferred income taxes | 3 | 4 |
Deferred credits and other | $ 162 | $ 138 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | ||
Casino | $ 530 | $ 660 |
Food and beverage | 206 | 225 |
Rooms | 229 | 222 |
Interactive entertainment | 228 | 177 |
Other revenue | 115 | 126 |
Less: casino promotional allowances | (140) | (157) |
Net revenues | 1,168 | 1,253 |
Direct | ||
Casino | 285 | 356 |
Food and beverage | 93 | 103 |
Rooms | 59 | 55 |
Platform fees | 64 | 49 |
Property, general, administrative, and other | 331 | 349 |
Depreciation and amortization | 119 | 102 |
Corporate expense | 41 | 47 |
Other operating costs | 22 | 48 |
Total operating expenses | 1,014 | 1,109 |
Income from operations | 154 | 144 |
Interest expense | (151) | (238) |
Deconsolidation and restructuring of CEOC and other | (237) | 7,090 |
Income/(loss) from continuing operations before income taxes | (234) | 6,996 |
Income tax provision | (40) | (192) |
Income/(loss) from continuing operations, net of income taxes | (274) | 6,804 |
Loss from discontinued operation, net of income taxes | 0 | (7) |
Net income/(loss) | (274) | 6,797 |
Net income attributable to noncontrolling interests | (34) | (25) |
Net income/(loss) attributable to Caesars | $ (308) | $ 6,772 |
Earnings/(loss) per share - basic and diluted | ||
Basic earnings/(loss) per share from continuing operations | $ (2.12) | $ 46.86 |
Basic loss per share from discontinued operations | 0 | (0.05) |
Basic earnings/(loss) per share | (2.12) | 46.81 |
Diluted earnings/(loss) per share from continuing operations | (2.12) | 46.17 |
Diluted loss per share from discontinued operations | 0 | (0.05) |
Diluted earnings/(loss) per share | $ (2.12) | $ 46.12 |
Weighted-average common shares outstanding - basic | 145 | 145 |
Weighted-average common shares outstanding - diluted | 145 | 147 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT) - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in- Capital | Accumulated Deficit | Accumulated Other Comprehensive Income/(Loss) | Total Caesars Stockholders’ Equity/(Deficit) | Noncontrolling Interests | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2014 | $ (4,742) | $ 1 | $ (19) | $ 8,140 | $ (13,104) | $ (15) | $ (4,997) | $ 255 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) attributable to company | 6,772 | 0 | 0 | 0 | 6,772 | 0 | 6,772 | ||
Net income attributable to noncontrolling interests | (25) | 25 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 6,797 | ||||||||
Share-based compensation | 9 | 0 | (2) | 13 | 0 | 0 | 11 | (2) | |
CIE stock transactions, net | (8) | 0 | 0 | (8) | 0 | 0 | (8) | 0 | |
Elimination of CEOC noncontrolling interest and deconsolidation (1) | [1] | 870 | 0 | 0 | 0 | 0 | 16 | 16 | 854 |
Decrease in noncontrolling interests, net of distributions and contributions | (10) | 0 | 0 | 0 | 0 | 0 | 0 | (10) | |
Other | 15 | 0 | 0 | (4) | 0 | 1 | (3) | 18 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2015 | 2,931 | 1 | (21) | 8,141 | (6,332) | 2 | 1,791 | 1,140 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2015 | 2,233 | 1 | (21) | 8,190 | (7,184) | 1 | 987 | 1,246 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income/(loss) attributable to company | (308) | 0 | 0 | 0 | (308) | 0 | (308) | ||
Net income attributable to noncontrolling interests | (34) | (34) | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (274) | ||||||||
Share-based compensation | 7 | 0 | (3) | 10 | 0 | 0 | 7 | 0 | |
CIE stock transactions, net | (18) | 0 | 0 | (13) | 0 | 0 | (13) | (5) | |
Other | (2) | 0 | 0 | 0 | 0 | 0 | 0 | (2) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2016 | $ 1,946 | $ 1 | $ (24) | $ 8,187 | $ (7,492) | $ 1 | $ 673 | $ 1,273 | |
[1] | The effect of the deconsolidation of CEOC. See Note 1. |
CONSOLIDATED CONDENSED STATEME6
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Cash Flows [Abstract] | ||
Cash flows provided by/(used in) operating activities | $ 117 | $ (102) |
Cash flows from investing activities | ||
Acquisitions of property and equipment, net of change in related payables | (50) | (100) |
Deconsolidation of CEOC cash | 0 | (958) |
Increase in restricted cash | (6) | (4) |
Decrease in restricted cash | 109 | 37 |
Proceeds from the sale and maturity of investments | 20 | 0 |
Payments to acquire investments | (3) | (3) |
Other | (1) | 4 |
Cash flows provided by/(used in) investing activities | 69 | (1,024) |
Cash flows from financing activities | ||
Proceeds from long-term debt and revolving credit facilities | 55 | 35 |
Repayments of long-term debt and revolving credit facilities | (104) | (94) |
Payment of contingent consideration | 0 | (30) |
Repurchase of CIE management shares | (28) | (27) |
Distributions to noncontrolling interest owners | (6) | (5) |
Other | 3 | 3 |
Cash flows used in financing activities | (80) | (118) |
Cash flows from discontinued operations | ||
Cash flows used in operating activities | 0 | (7) |
Cash used in discontinued operations | 0 | (7) |
Net increase/(decrease) in cash and cash equivalents | 106 | (1,251) |
Cash and cash equivalents, beginning of period | 1,338 | 2,806 |
Cash and cash equivalents, end of period | 1,444 | 1,555 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 80 | 188 |
Cash paid for income taxes | 24 | 20 |
Change in accrued capital expenditures | $ 9 | $ 27 |
Organization (Notes)
Organization (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Description of Business Organization CEC is primarily a holding company with no independent operations of its own. It owns Caesars Entertainment Resort Properties, LLC (“CERP”) and an interest in Caesars Growth Partners, LLC (“CGP”). We also consolidate the results of Caesars Interactive Entertainment, Inc. (“CIE”), a majority owned subsidiary of CGP that operates an online games business and owns the World Series of Poker (“WSOP”) tournaments and brand. As of March 31, 2016 , CERP and CGP owned a total of 12 casino properties in the United States, eight of which are in Las Vegas. These eight casino properties represented 53% of consolidated net revenues for the three months ended March 31, 2016 . CEC also holds a majority interest in Caesars Entertainment Operating Company, Inc. (“CEOC”). The results of CEOC and its subsidiaries are no longer consolidated with Caesars subsequent to CEOC and certain of its United States subsidiaries (the “Debtors”) voluntarily filing for reorganization under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) on January 15, 2015 . Caesars Enterprise Services, LLC Caesars Enterprise Services, LLC (“CES”) is a services joint venture formed by CERP, CEOC and Caesars Growth Properties Holdings, LLC (“CGPH”) (collectively, the “Members”). CES provides certain corporate and administrative services for the Members’ casino properties and related entities, including substantially all of the 28 casino properties owned by CEOC, and 9 casinos owned by unrelated third parties (including four Indian tribal casinos). CES manages certain assets for the casinos to which it provides services and the other assets it owns, licenses or controls, and employs certain of the corresponding employees. Under the terms of the joint venture and the Omnibus License and Enterprise Services Agreement, CEC and its operating subsidiaries continue to have access to the services historically provided to us by CEOC and its employees, its trademarks, and its programs despite the CEOC bankruptcy filing. Reportable Segments We view each casino property and CIE as operating segments and currently aggregate all such casino properties and CIE into three reportable segments based on management’s view, which aligns with their ownership and underlying credit structures: CERP, Caesars Growth Partners Casino Properties and Developments (“CGP Casinos”), and CIE. CGP Casinos is comprised of all subsidiaries of CGP excluding CIE. CEOC remained a reportable segment until its deconsolidation effective January 15, 2015 . Going Concern Overview We have identified the following circumstances that raise substantial doubt about CEC’s ability to continue as a going concern (which are described in more detail below): • we have limited cash available to meet financial commitments of CEC, primarily resulting from significant expenditures made to (1) defend against the litigation matters disclosed below and (2) support a plan of reorganization for CEOC (the “Restructuring”); • we have made material future commitments to support the Restructuring described below; and • we are a defendant in litigation relating to certain CEOC transactions dating back to 2010 and other legal matters (see Note 3 ) that could result in one or more adverse rulings against us. The completion of the merger of Caesars and Caesars Acquisition Company (“CAC”) is expected to aid CEC in meeting its previously disclosed financial commitments to support the Restructuring. While the cash forecast at CEC currently contemplates liquidity to be sufficient through the end of year, the CEC cash balance will be consumed by expenses associated with the Restructuring unless we identify additional sources of liquidity to meet CEC’s ongoing obligations as well as meet its commitments to support the Restructuring. We are evaluating whether we are able to obtain additional sources of cash. Furthermore, if the merger with CAC is not completed for any reason, CEC would still be liable for many of these obligations. Under the terms of the Restructuring, all related litigation is expected to be resolved. However, if CEC is unable to obtain additional sources of cash when needed, in the event of a material adverse ruling on one or all of the litigation matters disclosed below, or if CEOC does not emerge from bankruptcy on a timely basis on terms and under circumstances satisfactory to CEC, it is likely that CEC would seek reorganization under Chapter 11 of the Bankruptcy Code. We believe that CERP and CGP’s cash and cash equivalents, their cash flows from operations, and/or financing available under their separate revolving credit facilities will be sufficient to meet their normal operating requirements, to fund planned capital expenditures, and to fund debt service during the next 12 months and the foreseeable future. CEOC Reorganization CEC and the Debtors are party to the (a) Fifth Amended and Restated Restructuring Support and Forbearance Agreement dated October 7, 2015, with certain parties holding claims under CEOC’s first lien notes (the “First Lien Bond RSA”) and (b) Restructuring Support and Forbearance Agreement dated August 21, 2015, with certain parties holding claims under CEOC’s first lien credit agreement (the “First Lien Bank RSA” and, together with the First Lien Bond RSA, the “First Lien RSAs”). The “Effective Date” of the Restructuring (the material terms of which are contained in the First Lien RSAs as they may be modified by their terms) is the date upon which all required conditions of the Restructuring have been satisfied or waived and on which the CEOC reorganization and related transactions become effective. CEOC filed a plan of reorganization on October 7, 2015, (the “Initial Plan”) with the United States Bankruptcy Court for the Northern District of Illinois in Chicago (the “Bankruptcy Court”) that reflects the terms of the First Lien RSAs. On February 15, 2016, certain milestones under the First Lien RSAs were not met by CEOC, giving rise to the ability of two-thirds of each of CEOC’s first lien bondholders and first lien bank lenders to terminate their respective First Lien RSAs, although neither has done so. We, CEOC, and CEOC’s creditors continue to negotiate terms of the Restructuring. Because more than a majority of the first lien bondholders and first lien bank lenders approved the First Lien RSAs, we believe it is probable that certain amounts will ultimately be paid under the First Lien RSAs or otherwise, and therefore, we have accrued the items described in the table below in accrued restructuring and support expenses on the balance sheets. We believe that the Initial Plan serves as a low end of the potential settlement range. We are currently unable to determine either a best estimate or the high end of the estimated range, as negotiations between the various parties are ongoing and are ultimately subject to approval by the Bankruptcy Court and the receipt of required gaming regulatory approvals. On April 5, 2016, CEOC filed an amended plan of reorganization (the “Amended Plan”) on different terms than the Initial Plan, and therefore, different from the plan contemplated by the First Lien RSAs. CEC and CEOC’s creditors have not agreed to the Amended Plan and continue to assess it. Additionally, the Amended Plan has not been approved by the Bankruptcy Court. Summary of Restructuring and Support Expenses Accrued as of (Dollars in millions) Initial Plan Terms March 31, 2016 December 31, 2015 Amounts to First Lien Creditors (Accrued) Forbearance fees (“Fixed Payments”) in connection with the Restructuring (1) $ 406 $ 320 $ 320 Contingent payment to CEOC if there is insufficient liquidity at the Effective Date (2) $ 75 — — “Additional Consideration” for the period from February 1, 2016 through the Effective Date for the benefit of the First Lien Noteholders (3) $25 per month 325 162 “Upfront Payments” to certain First Lien Bank Lenders (4) $ 63 2 2 “Bank Guaranty Settlement” to purchase from the Settling First Lien Bank Lenders 100% of their respective First Lien Bank Obligations that survive the Effective Date (5) $ 460 460 386 Total accrued $ 1,107 $ 870 Amounts to First Lien Creditors (Due On or After Effective Date) (6) Purchase up to all of OpCo (7) equity pursuant to put rights $ 700 -- -- Purchase up to 14.8% of PropCo (8) equity pursuant to the put rights $ 269 -- -- Give PropCo a right of first refusal on all new domestic non-Las Vegas gaming facility opportunities, with CEC or OpCo leasing such properties -- -- -- Give PropCo a call right to purchase listed properties: Harrah’s Atlantic City and Harrah’s Laughlin -- -- -- Guarantee OpCo’s monetary obligations to PropCo under the leases -- -- -- Enter into a guaranty of collection of the OpCo debt received by the First Lien Bank Lenders and First Lien Noteholders -- -- -- Additional Potential Commitments (9) Principal amount of 5% convertible notes to be issued by CEC Up to $450 -- -- Up to 9.8% of PropCo equity purchased pursuant to the PropCo put rights and/or cash in an amount equal to the shortfall from 9.8% of PropCo equity (at Initial Plan value) if the PropCo put rights are not fully exercised -- -- -- The consideration CAC would have received under the Initial Plan on account of CEOC’s unsecured notes held by CAC -- -- -- Give PropCo a call right to purchase Harrah’s New Orleans -- -- -- ____________________ (1) $86 million was paid in fourth quarter of 2015. (2) Amount has not been accrued because CEOC currently has excess liquidity and is expected to maintain this position. (3) For the purposes of determining this amount, the Effective Date is estimated to be in the first quarter of 2017; however this date is outside of our control and is highly subject to change. (4) $61 million was paid in fourth quarter of 2015. (5) Amount payable on the Effective Date is subject to the excess cash held by CEOC at Emergence. (6) No amounts have been accrued because amounts are not a settlement of past actions, do not relate to any existing contingencies, and are not legally enforceable at this time. In addition, for certain items, CEC will receive valuable consideration in return and therefore these payments will not be expensed when incurred. We expect to accrue such items on or subsequent to the Effective Date. (7) “OpCo” refers to the proposed entity resulting from the Restructuring that will operate the CEOC Properties under a lease with PropCo. “CEOC Properties” refers to those properties owned by CEOC as of the Petition Date. Holders of over 85% of the First Lien Notes have already indicated their intent to put their OpCo equity to CEC once received. (8) “PropCo” refers to the proposed entity resulting from the Restructuring that will own the CEOC Properties as of the Effective Date. (9) Under the terms of the Initial Plan, CEC will pay amounts if certain classes of CEOC’s unsecured creditors vote in favor of the Initial Plan and if the Initial Plan is approved by the Bankruptcy Court. Payment to CEOC . In addition, and separate from the transactions and agreements described above, because there was not a comprehensive out of court restructuring of CEOC's debt securities or a prepackaged or prearranged in-court restructuring with requisite voting support from each of the first and second lien secured creditor classes by February 15, 2016, the agreement contemplates an additional payment to CEOC of $35 million from CEC, which CEOC has demanded. During the first quarter of 2015, we accrued this liability in accrued restructuring and support expenses on the consolidated balance sheet, and this amount is currently due and payable. CEC Liquidity Caesars Entertainment (which includes CEC and its consolidated subsidiaries and VIEs) is a highly-leveraged company and had $7.0 billion in consolidated debt outstanding as of March 31, 2016 . As a result, a significant portion of our liquidity needs are for debt service, including significant interest payments. As detailed in Note 9 , our consolidated estimated debt service (including principal and interest) for the remainder of 2016 is $538 million and $9.5 billion thereafter to maturity. See Note 9 for details of our debt outstanding and related restrictive covenants. This includes, among other information, details of our individual borrowings outstanding and each subsidiary’s annual maturities of long-term debt as of March 31, 2016 . Cash and Available Revolver Capacity March 31, 2016 (In millions) CERP CES CGP Other Cash and cash equivalents $ 211 $ 64 $ 951 $ 218 Revolver capacity 270 — 160 — Revolver capacity drawn or committed to letters of credit (75 ) — (15 ) — Total $ 406 $ 64 $ 1,096 $ 218 Consolidated cash and cash equivalents, excluding restricted cash, as shown in the table above include amounts held by CERP, CGP, and CES, which are not readily available to CEC. “Other” reflects CEC and certain of its direct subsidiaries, including its insurance captives. CEC is primarily a holding company with no independent operations, employees, or material debt issuances of its own. Its primary assets as of March 31, 2016 , consist of $218 million in cash and cash equivalents and its ownership interests in CEOC, CERP and CGP. CEC’s cash includes $96 million held by its insurance captives. Provisions included in certain debt arrangements entered into by CERP and CGP (and/or their respective subsidiaries) substantially restrict the ability of CERP, CGP, and their subsidiaries to provide dividends to CEC. In addition, CEC does not receive any financial benefit from CEOC during CEOC’s bankruptcy, as all earnings and cash flows are retained by CEOC for the benefit of its creditors. CEC has no requirement to fund the operations of CERP, CGP, or their subsidiaries. Accordingly, CEC cash outflows are primarily used for corporate development opportunities and other corporate-level activity, including defending itself in the litigation in which it has been named as a defendant (see Note 3 ). CEC is generally limited to raising additional capital through borrowings or equity transactions because it has no operations of its own and the restrictions on its subsidiaries under lending arrangements generally prevent the distribution of cash from the subsidiaries to CEC, except for certain restricted payments that CERP and CGPH are authorized to make in accordance with their lending arrangements. In the first quarter of 2016, CEC began to utilize $100 million that management had previously restricted for use in connection with a casino development project. Guarantee of Collection In 2014, CEOC amended its senior secured credit facilities (the “Bank Amendment”) resulting in, among other things, a modification of CEC’s guarantee under the senior secured credit facilities such that CEC’s guarantee was limited to a guarantee of collection (“CEC Collection Guarantee”) with respect to obligations owed to the lenders who consented to the Bank Amendment. The CEC Collection Guarantee requires the creditors to exhaust all rights and remedies at law and in equity that the creditors or their agents may have against CEOC or any of its subsidiaries and its and their respective property to collect, or obtain payment of, the guaranteed amounts. As part of the Bank Guaranty Settlement disclosed above, the CEOC creditors have agreed to eliminate the CEC Collection Guarantee, and we recorded $460 million as an estimate of the liability based on the terms of the Bank Guaranty Settlement agreement. Litigation In addition to financial commitments described above, we have the following outstanding uncertainties for which we have not accrued any amounts, all of which are described in Note 3 : • Litigation commenced by Wilmington Savings Fund Society, FSB on August 4, 2014 (the “Delaware Second Lien Lawsuit”); • Litigation commenced by parties on September 3, 2014 and October 2, 2014 (the “Senior Unsecured Lawsuits”); • Litigation commenced by UMB Bank on November 25, 2014 (the “Delaware First Lien Lawsuit”); • Demands for payment made by Wilmington Savings Fund Society, FSB on February 13, 2015 (the “February 13 Notice”); • Demands for payment made by BOKF, N.A., on February 18, 2015 (see “February 18 Notice”); • Litigation commenced by BOKF, N.A. on March 3, 2015 (the “New York Second Lien Lawsuit”); • Litigation commenced by UMB Bank on June 15, 2015 (the “New York First Lien Lawsuit”); • Litigation commenced by Wilmington Trust, National Association on October 20, 2015 (the “New York Senior Notes Lawsuit”); and • Litigation commenced by Trustees of the National Retirement Fund in January 2015 (“NRF Litigation”). Report of Bankruptcy Examiner The Bankruptcy Court previously engaged an examiner to investigate possible claims CEOC might have against CEC and/or other entities and individuals. On March 15, 2016, the examiner released his report, which identifies a variety of potential claims against CEC and certain individuals related to a number of transactions dating back to 2009. Most of the examiner’s findings are premised on his view that CEOC was “insolvent” at the time of the applicable transactions and that CEOC did not receive fair value for assets transferred. The examiner’s report includes his conclusions on the relative strengths of these possible claims, many of which are described in Note 3 . The examiner calculates an estimated range of potential damages for these potential claims from $3.6 billion to $5.1 billion , and such calculation does not account for probability of success, likelihood of collection, or the time or cost of litigation. While this report was prepared at the request of the Bankruptcy Court, none of the findings included therein are legally binding on the Bankruptcy Court or any party. CEC contests several of the examiner’s findings, including his findings that CEOC was insolvent at relevant times, that there were breaches of fiduciary duty, that CEOC did not receive fair value for assets transferred, that there were fraudulent transfers, and as to the calculation of damages. CEC believes that each of the challenged transactions was undertaken to provide CEOC with the liquidity and resources required to sustain it and provide time to recover from significant market challenges. CEC believes that the conclusion of the examination and the release of the report was a necessary step to facilitate ongoing settlement discussions in the CEOC bankruptcy proceedings. In April 2016, CEC, CEOC, and various other constituents began mediation with Joseph Farnan, the former chief judge of the United States District Court for the District of Delaware, seeking to reach a mutually agreeable plan of reorganization of CEOC. Despite its disagreements with the examiner’s conclusions, CEC has offered to provide substantial value to creditors in settlement as part of the plan of reorganization for CEOC. The mediation is ongoing, with further sessions scheduled over the next few weeks. CEC has been in regular, direct contact with both of CEOC’s official creditors’ committees, as well as other major creditor constituents, in an ongoing effort to arrive at a consensual plan providing for the timely emergence of CEOC from bankruptcy. |
Basis of Presentation and Conso
Basis of Presentation and Consolidation Basis of Presentation and Consolidation (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation and Consolidation Basis of Presentation The accompanying unaudited consolidated condensed financial statements of Caesars have been prepared under the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable for interim periods, and therefore, do not include all information and footnotes necessary for complete financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”). The results for the interim periods reflect all adjustments (consisting primarily of normal recurring adjustments) that management considers necessary for a fair presentation of financial position, results of operations, and cash flows. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2016 fiscal year. All amounts presented in these consolidated condensed financial statements and notes thereto exclude the operating results and cash flows of CEOC subsequent to January 15, 2015 , and the assets, liabilities, and equity of CEOC as of March 31, 2016 . Consolidation of Subsidiaries and Variable Interest Entities We consolidate into our financial statements the accounts of 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 (1) affiliates that are more than 50% owned are consolidated; (2) 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 (3) investments in affiliates of 20% or less are generally accounted for using the cost method. Consolidation of Caesars Growth Partners Because the equity holders in CGP receive returns disproportionate to their voting interests and substantially all the activities of CGP are related to Caesars, CGP has been determined to be a VIE. CAC is the sole voting member of CGP. Common control exists between CAC and Caesars through the majority beneficial ownership of both by Hamlet Holdings (as defined in Note 15 ). The assets held by CGP originally came from Caesars and continue to be intrinsically closely associated with Caesars through the nature of the business, as well as ongoing service and management agreements. Additionally, CEC is expected to receive the majority of the benefits or absorb the majority of the losses from its higher economic participation in CGP. Since CEC is more closely associated with CGP than CAC, we have determined that CEC is the primary beneficiary of CGP and is required to consolidate them. Neither CAC nor CGP guarantees any of CEC’s debt, and the creditors or beneficial holders of CGP have no recourse to the general credit of CEC. CGP generated net revenues of $643 million and $567 million for the three months ended March 31, 2016 and 2015, respectively. Net income attributable to Caesars related to CGP was $3 million compared with net loss of $2 million for the three months ended March 31, 2016 and March 31, 2015 , respectively. CGP was obligated to issue non-voting membership units to CEC in 2016 to the extent that the earnings from CIE’s social and mobile games business exceeded a specified threshold amount as of December 31, 2015 . In April 2016, CGP issued 32 million Class B non-voting units to CEC, resulting in CEC’s economic ownership in CGP increasing from 57.4% to 61.2% . However, there was no effect on our financial statements from this transaction. Consolidation of Caesars Enterprise Services A steering committee acts in the role of a board of managers for CES with each Member entitled to appoint one representative to the steering committee. Each Member, through its representative, is entitled to a single vote on the steering committee; accordingly, the voting power of the Members does not equate to their ownership percentages. Therefore, w hen CES was formed, we determined that it was a VIE, and we concluded that CERP was required to consolidate it. Effective January 1, 2016, we implemented the Financial Accounting Standard Board’s (the “FASB”) Accounting Standard Update (“ASU”) No. 2015-02, which amended Topic 810, Consolidations . Applying the amended guidance had no effect on our consolidated financial statements. Under the guidance in effect prior to ASU No. 2015-02, CERP was determined to be the primary beneficiary of CES, and we consolidated CES through our consolidation of CERP. Under the amended guidance, in determining whether an entity is the primary beneficiary of a VIE, the entity must evaluate whether it has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance through both its direct economic interests in the VIE and its indirect economic interests in the VIE held through related parties. Under the new criteria, when a decision maker exists that holds both power and benefits through its related parties and neither related party holds such power and benefits on their own, the decision maker is determined to be the primary beneficiary. Therefore, we concluded that CEC is the primary beneficiary because our combined economic interest in CES, through our subsidiaries, represents a controlling financial interest. Expenses incurred by CES are allocated to the casino properties directly or to the Members according to their allocation percentages, subject to annual review. Therefore, CES is a "pass-through" entity that serves as an agent on behalf of the Members at a cost-basis, and is contractually required to fully allocate its costs. CES is designed to have no operating cash flows of its own, and any net income or loss is generally immaterial and is typically subject to allocation to the Members in the subsequent period. Consolidation Considerations for Caesars Entertainment Operating Company CEOC’s filing for reorganization was a reconsideration event for Caesars Entertainment to reevaluate whether consolidation of CEOC continued to be appropriate. We concluded that CEOC is a VIE and that we are not the primary beneficiary of CEOC; therefore, we no longer consolidate CEOC. Transactions with CEOC are treated as related party transactions for Caesars Entertainment. These transactions include items such as casino management fees paid to CEOC, insurance expenses related to insurance coverage provided to CEOC by Caesars Entertainment, and rent payments by CEOC to CERP under the Octavius Tower lease agreement. See Note 15 for additional information on related party transactions and on the carrying amounts and classification of assets and liabilities that relate to our variable interest in CEOC. |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation Litigation Noteholder Disputes On August 4, 2014, Wilmington Savings Fund Society, FSB, solely in its capacity as successor Indenture Trustee for the 10.00% Second-Priority Senior Secured Notes due 2018 (the “10.00% Second-Priority Notes”), on behalf of itself and, it alleges, derivatively on behalf of CEOC, filed a lawsuit (the “Delaware Second Lien Lawsuit”) in the Court of Chancery in the State of Delaware against CEC and CEOC, CGP, CAC,CERP, CES, Eric Hession, Gary Loveman, Jeffrey D. Benjamin, David Bonderman, Kelvin L. Davis, Marc C. Rowan, David B. Sambur, and Eric Press. The lawsuit alleges claims for breach of contract, intentional and constructive fraudulent transfer, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and corporate waste. The lawsuit seeks (1) an award of money damages; (2) to void certain transfers, the earliest of which dates back to 2010; (3) an injunction directing the recipients of the assets in these transactions to return them to CEOC; (4) a declaration that CEC remains liable under the parent guarantee formerly applicable to the 10.00% Second-Priority Notes; (5) to impose a constructive trust or equitable lien on the transferred assets; and (6) an award to plaintiffs for their attorneys’ fees and costs. CEC believes this lawsuit is without merit and is defending itself vigorously. A motion to dismiss this action was filed by CEC and other defendants in September 2014, and the motion was argued in December 2014. During the pendency of its Chapter 11 bankruptcy proceedings, the action has been automatically stayed with respect to CEOC. The motion to dismiss with respect to CEC was denied on March 18, 2015. In a Verified Supplemental Complaint filed on August 3, 2015, the plaintiff stated that due to CEOC’s bankruptcy filing, the continuation of all claims was stayed pursuant to the bankruptcy except for Claims II, III, and X. These are claims against CEC only, for breach of contract in respect of the release of the parent guarantee formerly applicable to the CEOC 10.00% Second-Priority Notes, for declaratory relief in respect of the release of this guarantee, and for violations of the Trust Indenture Act in respect of the release of this guarantee. Fact discovery in the case is complete, and summary judgment briefing is underway. No trial date has been set. On September 3, 2014, holders of approximately $21 million of CEOC 6.50% Senior Unsecured Notes due 2016 and 5.75% Senior Unsecured Noted due 2017 (collectively, the “Senior Unsecured Notes”) filed suit in federal district court in Manhattan against CEC and CEOC, claiming broadly that an August 12, 2014 Note Purchase and Support Agreement between CEC and CEOC (on the one hand) and certain other holders of the Senior Unsecured Notes (on the other hand) impaired their own rights under the Trust Indenture Act of 1939 and the indentures governing the Senior Unsecured Notes. The lawsuit seeks both declaratory and monetary relief. On October 2, 2014, a holder of CEOC’s 6.50% Senior Unsecured Notes due 2016 purporting to represent a class of all persons who held these Notes from August 11, 2014 to the present filed a substantially similar suit in the same court, against the same defendants, relating to the same transactions. Both lawsuits (the “Senior Unsecured Lawsuits”) were assigned to the same judge. The claims against CEOC have been automatically stayed during its Chapter 11 bankruptcy proceedings. The court denied a motion to dismiss both lawsuits with respect to CEC. The parties have completed fact discovery with respect to both plaintiffs' claims against CEC. On October 23, 2015, plaintiffs in the Senior Unsecured Lawsuits moved for partial summary judgment, and on December 29, 2015, those motions were denied. On December 4, 2015, plaintiff in the action brought on behalf of holders of CEOC’s 6.50% Senior Unsecured Notes moved for class certification and briefing has been completed. The judge presiding over these cases recently retired, and a new judge has been appointed to preside over these lawsuits. That judge has set a new summary judgment briefing schedule for May and June of 2016 and has indicated his intention to rule on these summary judgment motions on or before July 22, 2016. Trial of remaining issues would take place beginning August 22, 2016. On November 25, 2014, UMB Bank (“UMB”), as successor indenture trustee for CEOC's 8.50% Senior Secured Notes due 2020 (the “8.50% Senior Secured Notes”), filed a verified complaint (the “Delaware First Lien Lawsuit”) in Delaware Chancery Court against CEC, CEOC, CERP, CAC, CGP, CES, and against individual past and present Board members Loveman, Benjamin, Bonderman, Davis, Press, Rowan, Sambur, Hession, Colvin, Kleisner, Swann, Williams, Housenbold, Cohen, Stauber, and Winograd, alleging generally that defendants improperly stripped CEOC of certain assets, wrongfully effected a release of CEC’s parent guarantee of the 8.50% Senior Secured Notes and committed other wrongs. Among other things, UMB asked the court to appoint a receiver over CEOC. In addition, the suit pleads claims for fraudulent conveyances/transfers, insider preferences, illegal dividends, declaratory judgment (for breach of contract as regards to the parent guarantee and also as to certain covenants in the bond indenture), tortious interference with contract, breach of fiduciary duty, usurpation of corporate opportunities, and unjust enrichment, and seeks monetary, equitable and declaratory relief. The lawsuit has been automatically stayed with respect to CEOC during its Chapter 11 bankruptcy process. Pursuant to the First Lien Bond RSA, the lawsuit also has been stayed in its entirety, with the consent of all of the parties to it. The consensual stay will expire upon the termination of the First Lien Bond RSA. On February 13, 2015, Caesars Entertainment received a Demand For Payment of Guaranteed Obligations (the “February 13 Notice”) from Wilmington Savings Fund Society, FSB, in its capacity as successor Trustee for CEOC’s 10.00% Second-Priority Notes. The February 13 Notice alleges that CEOC’s commencement of its voluntary Chapter 11 bankruptcy case constituted an event of default under the indenture governing the 10.00% Second-Priority Notes; that all amounts due and owing on the 10.00% Second-Priority Notes therefore immediately became payable; and that Caesars Entertainment is responsible for paying CEOC’s obligations on the 10.00% Second-Priority Notes, including CEOC’s obligation to timely pay all principal, interest, and any premium due on these notes, as a result of a parent guarantee provision contained in the indenture governing the notes that the February 13 Notice alleges is still binding. The February 13 Notice accordingly demands that Caesars Entertainment immediately pay Wilmington Savings Fund Society, FSB, cash in an amount of not less than $3.7 billion, plus accrued and unpaid interest (including without limitation the $184 million interest payment due December 15, 2014 that CEOC elected not to pay) and accrued and unpaid attorneys’ fees and other expenses. The February 13 Notice also alleges that the interest, fees and expenses continue to accrue. On February 18, 2015, Caesars Entertainment received a Demand For Payment of Guaranteed Obligations (the “February 18 Notice”) from BOKF, N.A. (“BOKF”), in its capacity as successor Trustee for CEOC’s 12.75% Second-Priority Senior Secured Notes due 2018 (the “12.75% Second-Priority Notes”). The February 18 Notice alleges that CEOC’s commencement of its voluntary Chapter 11 bankruptcy case constituted an event of default under the indenture governing the 12.75% Second-Priority Notes; that all amounts due and owing on the 12.75% Second-Priority Notes therefore immediately became payable; and that CEC is responsible for paying CEOC’s obligations on the 12.75% Second-Priority Notes, including CEOC’s obligation to timely pay all principal, interest and any premium due on these notes, as a result of a parent guarantee provision contained in the indenture governing the notes that the February 18 Notice alleges is still binding. The February 18 Notice therefore demands that CEC immediately pay BOKF cash in an amount of not less than $750 million, plus accrued and unpaid interest, accrued and unpaid attorneys’ fees, and other expenses. The February 18 Notice also alleges that the interest, fees and expenses continue to accrue. In accordance with the terms of the applicable indentures, CEC is not subject to the above-described guarantees. As a result, we believe the demands for payment are meritless. On March 3, 2015, BOKF filed a lawsuit (the “New York Second Lien Lawsuit”) against CEC in federal district court in Manhattan, in its capacity as successor trustee for CEOC’s 12.75% Second-Priority Notes. On June 15, 2015, UMB filed a lawsuit (the “New York First Lien Lawsuit”) against CEC, also in federal district court in Manhattan, in its capacity as successor trustee for CEOC’s 11.25% Senior Secured Notes due 2017, 8.50% Senior Secured Notes due 2020, and 9.00% Senior Secured Notes due 2020. Plaintiffs in these actions allege that CEOC’s filing of its voluntary Chapter 11 bankruptcy case constitutes an event of default under the indentures governing these notes, causing all principal and interest to become immediately due and payable, and that CEC is obligated to make those payments pursuant to parent guarantee provisions in the indentures governing these notes that plaintiffs allege are still binding. Both plaintiffs bring claims for violation of the Trust Indenture Act of 1939, breach of contract, breach of duty of good faith and fair dealing and for declaratory relief and BOKF brings an additional claim for intentional interference with contractual relations. The cases were both assigned to the same judge presiding over the other Parent Guarantee Lawsuits (as defined below) that are taking place in Manhattan. CEC filed its answer to the BOKF complaint on March 25, 2015, and to the UMB complaint on August 10, 2015. On June 25, 2015, and June 26, 2015, BOKF and UMB, respectively, moved for partial summary judgment, specifically on their claims alleging a violation of the Trust Indenture Act of 1939, seeking both declaratory relief and damages. On August 27, 2015, those motions were denied. The court, on its own motion, certified its order with respect to the interpretation of the Trust Indenture Act for interlocutory appeal to the United States Court of Appeals for the Second Circuit, and on December 22, 2015, the appellate court denied our motion for leave to appeal. On November 20, 2015, BOKF and UMB again moved for partial summary judgment. These motions likewise were denied. The judge presiding over these cases recently retired, and a new judge has been appointed to preside over these lawsuits. That judge has set a new summary judgment briefing schedule for May and June of 2016 and has indicated his intention to rule on these summary judgment motions on or before July 22, 2016. Trial of remaining issues would take place beginning August 22, 2016. On October 20, 2015, Wilmington Trust, National Association (“Wilmington Trust”), filed a lawsuit (the “New York Senior Notes Lawsuit” and, together with the Delaware Second Lien Lawsuit, the Delaware First Lien Lawsuit, the Senior Unsecured Lawsuits, the New York Second Lien Lawsuit, and the New York First Lien Lawsuit, the “Parent Guarantee Lawsuits”) against CEC in federal district court in Manhattan in its capacity as successor indenture trustee for CEOC’s 10.75% Senior Notes due 2016 (the “10.75% Senior Notes”). Plaintiff alleges that CEC is obligated to make payment of amounts due on the 10.75% Senior Notes pursuant to a parent guarantee provision in the indenture governing those notes that plaintiff alleges is still in effect. Plaintiff raises claims for violations of the Trust Indenture Act of 1939, breach of contract, breach of the implied duty of good faith and fair dealing, and for declaratory judgment, and seeks monetary and declaratory relief. CEC filed its answer to the complaint on November 23, 2015. As with the other parent guaranty lawsuits taking place in Manhattan, the judge presiding over these cases recently retired, and a new judge has been appointed to preside over these lawsuits. That judge has set a new summary judgment briefing schedule for May and June of 2016 and has indicated his intention to rule on these summary judgment motions on or before July 22, 2016. Trial of remaining issues would take place beginning August 22, 2016. On March 11, 2015, CEOC filed an adversary proceeding in bankruptcy court requesting that the Parent Guarantee Lawsuits be enjoined against all defendants through plan confirmation; in subsequent submissions, CEOC stated that it sought a temporary stay of those lawsuits until 60 days after the issuance of a final report by the Bankruptcy Examiner. CEOC argued that contemporaneous prosecution of related claims against CEC would impair the bankruptcy court’s jurisdiction over the Debtors’ reorganization by threatening the Debtors’ ability to recover estate property for the benefit of all creditors, diminishing the prospects of a successful reorganization, and depleting property of the estate. On July 22, 2015, the bankruptcy court denied CEOC’s request, and on October 6, 2015, this denial was affirmed by the United States District Court for the Northern District of Illinois. On December 23, 2015, the United States Court of Appeals for the Seventh Circuit vacated the denial of CEOC’s request to enjoin the Parent Guarantee Lawsuits and remanded the case for further proceedings. On February 26, 2016, the bankruptcy court granted CEOC’s motion for a temporary stay with respect to the New York Second Lien Lawsuit and the New York First Lien Lawsuit that had been scheduled to begin on March 14. The stay will remain in effect until May 9, 2016. None of the rulings on CEOC’s request to enjoin the Parent Guarantee Lawsuits addresses the merits of those actions. We believe that the claims and demands described above against CEC are without merit and we intend to defend the Company vigorously. The claims against CEOC have been stayed due to the Chapter 11 process and, except as described above, the actions against CEC have been allowed to continue. See additional disclosure relating to CEOC’s Chapter 11 filing in Note 1. We believe that the Noteholder Disputes and the Parent Guarantee Lawsuits have a reasonably possible likelihood of an adverse outcome. Should these matters ultimately be resolved through litigation outside of the financial restructuring of CEOC (the “Financial Restructuring”), and should a court find in favor of the claimants in some or all of the Noteholder Disputes, such determination would likely lead to a CEC reorganization under Chapter 11 of the Bankruptcy Code (see Note 1). We are not able to estimate a range of reasonably possible losses should any of the Noteholder Disputes ultimately be resolved against us, although they could potentially exceed $11 billion. CEC-CAC Merger Litigation On December 30, 2014, Nicholas Koskie, on behalf of himself and, he alleges, all others similarly situated, filed a lawsuit (the “Merger Lawsuit”) in the Clark County District Court in the State of Nevada against CAC, CEC and members of the CAC board of directors Marc Beilinson, Philip Erlanger, Dhiren Fonseca, Don Kornstein, Karl Peterson, Marc Rowan, and David Sambur (the individual defendants collectively, the “CAC Directors”). The Merger Lawsuit alleges claims for breach of fiduciary duty against the CAC Directors and aiding and abetting breach of fiduciary duty against CAC and CEC. It seeks (1) an order directing the CAC Directors to fulfill alleged fiduciary duties to CAC in connection with the proposed merger between CAC and CEC announced on December 22, 2014 (the “Proposed Merger”), specifically by announcing their intention to (a) cooperate with bona fide interested parties proposing alternative transactions, (b) ensure that no conflicts exist between the CAC Directors’ personal interests and their fiduciary duties to maximize shareholder value in the Proposed Merger, or resolve all such conflicts in favor of the latter, and (c) act independently to protect the interests of the shareholders; (2) an order directing the CAC Directors to account for all damages suffered or to be suffered by plaintiff and the putative class as a result of the Proposed Merger; and (3) an award to plaintiff for his costs and attorneys’ fees. It is unclear whether the Merger Lawsuit also seeks to enjoin the Proposed Merger. CEC believes that this lawsuit is without merit and will defend itself vigorously. The deadline to respond to the Merger Lawsuit has been adjourned without a date by agreement of the parties. Employee Benefit Obligations In December 1998, Hilton Hotels Corporation (“Hilton”) spun-off its gaming operations as Park Place Entertainment Corporation (“Park Place”). In connection with the spin-off, Hilton and Park Place entered into various agreements, including an Employee Benefits and Other Employment Allocation Agreement dated December 31, 1998 (the “Allocation Agreement”) whereby Park Place assumed or retained, as applicable, certain liabilities and excess assets, if any, related to the Hilton Hotels Retirement Plan (the “Hilton Plan”) based on the benefits of Hilton employees and Park Place employees. CEOC is the ultimate successor to this Allocation Agreement. In 2013, a lawsuit was settled related to the Hilton Plan, which retroactively and prospectively increased total benefits to be paid under the Hilton Plan. In 2009, we received a letter from Hilton, notifying us of a lawsuit related to the Hilton Plan that alleged that CEC had a potential liability for the additional claims under the terms of the Allocation Agreement. Based on conversations between our representative and a representative of the defendants, CEOC recorded a charge of $25 million during the second quarter 2010, representing the allocated share of the total damages estimate. In December 2013, we received a letter from Hilton notifying us that all final court rulings have been rendered in relation to this matter. We were subsequently informed that CEC’s obligation under the Allocation Agreement was approximately $54 million , and that approximately $19 million relates to contributions for historical periods and approximately $35 million relates to estimated future contributions. We met with Hilton representatives in March 2014 and had discussions subsequently. We cannot currently predict the ultimate outcome of this matter, but continue to believe that we may have various defenses against such claims, including defenses as to the amount of liabilities. On November 21, 2014, in response to a letter from Hilton, we agreed to attempt to mediate a resolution of the matter. On December 24, 2014, Hilton sued CEC and CEOC in federal court in Virginia primarily under the Employee Retirement Income Security Act (“ERISA”), and also under state contract and unjust enrichment law theories, for monetary and equitable relief in connection with this ongoing dispute. Hilton amended its lawsuit in January 2015 to remove CEOC as a defendant. We moved to dismiss the lawsuit in February 2015, and that motion was argued in March 2015. On April 14, 2015, the Court issued an Opinion dismissing with prejudice the unjust enrichment claim, and transferring the purported contract and ERISA claims to the Northern District of Illinois, as had been requested by CEC. The Northern District of Illinois subsequently referred the case to the Bankruptcy Court presiding over the CEOC bankruptcy. Hilton moved to have the Bankruptcy Court refer the matter back to the federal district court. Also, in early September 2015, CEC moved to dismiss the remaining ERISA and contract claims in their entirety. Hilton opposed that motion as to its ERISA claims on September 30, 2015 and volunteered to stipulate to the dismissal of the contract claims without prejudice. CEC will not consent to the dismissal of contract claims unless the dismissal is with prejudice. CEC filed a reply brief in further support of its motion to dismiss on October 21, 2015. Both motions are pending decisions. The matter pending in bankruptcy court is stayed until May 18, 2016, and the matters pending in federal district court are stayed until May 27, 2016. National Retirement Fund In January 2015, a majority of the Trustees of the National Retirement Fund (“NRF”), a multi-employer defined benefit pension plan, voted to expel the five indirect subsidiaries of CEC which were required to make contributions to the legacy plan of the NRF (the “Five Employers”). The NRF contended that the financial condition of the Five Employers’ controlled group (the “CEC Controlled Group”) and CEOC’s then-potential bankruptcy presented an “actuarial risk” to the plan because, depending on the outcome of any CEOC bankruptcy proceedings, CEC might no longer be liable to the plan for any partial or complete withdrawal liability. As a result, the NRF claimed that the expulsion of the Five Employers constituted a complete withdrawal of the CEC Controlled Group from the plan. CEOC, in its bankruptcy proceedings, has not rejected the contribution obligations of any of its subsidiary employers to the NRF, but we cannot make any prediction as to whether this will take place or not. The NRF has advised the CEC Controlled Group (which includes CERP) that the expulsion of the Five Employers has triggered a joint and several withdrawal liability with a present value of approximately $360 million, payable in 80 quarterly payments of about $6 million. Prior to the NRF’s vote to expel the Five Employers, the Five Employers reiterated their commitments to remain in the plan and not seek rejection of any collective bargaining agreement in which the obligation to contribute to NRF exists. The Five Employers were current with respect to pension contributions at the time of their expulsion, and are current with respect to pension contributions as of today pursuant to the Standstill Agreement referred to below. We have opposed the various NRF expulsion actions. On January 8, 2015, prior to the NRF’s vote to expel the Five Employers, CEC filed an action in the United States District Court for the Southern District of New York (the “S.D.N.Y.”) against the NRF and its Board of Trustees, seeking a declaratory judgment that they did not have the authority to expel the Five Employers and thus allegedly trigger withdrawal liability for the CEC Controlled Group (the “CEC Action”). On December 25, 2015, the District Judge entered an order dismissing the CEC Action on the ground that CEC’s claims in this action must first be arbitrated under ERISA. CEC has appealed this decision to the United States Court of Appeals for the Second Circuit. On March 6 and March 27, 2015, CEOC and certain of its subsidiaries filed in the CEOC bankruptcy proceedings two motions to void (a) the purported expulsion of the Five Employers and based thereon the alleged triggering of withdrawal liability for the non-debtor members of the CEC Controlled Group, and (b) a notice and payment demand for quarterly payments of withdrawal liability subsequently made by the NRF to certain non-debtor members of the CEC Controlled Group, respectively, on the ground that each of these actions violated the automatic stay (the “362 Motions”). On November 12, 2015, Bankruptcy Judge Goldgar issued a decision denying the 362 Motions on the ground that the NRF’s actions were directed at non-debtors and therefore did not violate the automatic stay. CEOC has appealed this decision to the federal district court in Chicago. On March 6, 2015, CEOC commenced an adversary proceeding against the NRF and its Board of Trustees in the Bankruptcy Court (the “Adversary Proceeding”). On March 11, 2015, CEOC filed a motion in that Adversary Proceeding to extend the automatic stay in the CEOC bankruptcy proceedings to apply to the NRF’s expulsion of the Five Employers (the “105 Motion”). Judge Goldgar has not yet decided the 105 Motion. On March 20, 2015, CEC, CEOC and CERP, on behalf of themselves and others, entered into a Standstill Agreement with the NRF and its Board of Trustees that, among other things, stayed each member of the CEC Controlled Group’s purported obligation to commence making quarterly payments of withdrawal liability and instead required the Five Employers to continue making monthly contribution payments to the NRF, unless and until each of the 362 Motions and the 105 Motion had been denied. As the 105 Motion has not yet been decided, the Standstill Agreement remains in effect. Also, on March 18, 2015, the NRF and its fund manager commenced a collection action in the S.D.N.Y. against CEC, CERP and all non-debtor members of the CEC Controlled Group for the payment of the first quarterly payment of withdrawal liability, which the NRF contended was due on March 15, 2015 (the “NRF Action”). On December 25, 2015, the District Judge denied the defendant’s motion to dismiss the NRF Action on the ground that the arguments raised by the defendants must first be arbitrated under ERISA. On February 26, 2016, the NRF and its fund manager filed a motion for summary judgment against CEC and CERP for payment of the first quarterly payment of withdrawal liability and for interest, liquidated damages, attorneys’ fees and costs. This motion and CEC and CERP’s opposition thereto has been fully briefed, but no decision has been rendered. We believe our legal arguments against the actions undertaken by NRF are strong and will pursue them vigorously, and will defend vigorously against the claims raised by the NRF in the NRF Action. Because legal proceedings with respect to this matter are at the preliminary stages, we cannot currently provide assurance as to the ultimate outcome of the matters at issue. Other Matters In recent years, governmental authorities have been increasingly focused on anti-money laundering (“AML”) policies and procedures, with a particular focus on the gaming industry. In October 2013, CEOC’s subsidiary, Desert Palace, Inc. (the owner of and referred to herein as Caesars Palace), received a letter from the Financial Crimes Enforcement Network of the United States Department of the Treasury (“FinCEN”), stating that FinCEN was investigating Caesars Palace for alleged violations of the Bank Secrecy Act to determine whether it is appropriate to assess a civil penalty and/or take additional enforcement action against Caesars Palace. Caesars Palace responded to FinCEN’s letter in January 2014. Additionally, we were informed in October 2013 that a federal grand jury investigation regarding anti-money laundering practices of the Company and its subsidiaries had been initiated. CEC and Caesars Palace have been cooperating with FinCEN, the Department of Justice and the Nevada Gaming Control Board (the “GCB”) on this matter. On September 8, 2015, FinCEN announced a settlement pursuant to which Caesars Palace agreed to an $8 million civil penalty for its violations of the Bank Secrecy Act, which penalty shall be treated as a general unsecured claim in Caesars Palace’s bankruptcy proceedings. In addition, Caesars Palace agreed to conduct periodic external audits and independent testing of its AML compliance program, report to FinCEN on mandated improvements, adopt a rigorous training regime, and engage in a “look-back” for suspicious transactions. The terms of the FinCEN settlement were approved by the bankruptcy court on October 19, 2015. CEOC and the GCB reached a settlement on the same facts as above, wherein CEC agreed to pay $1.5 million and provide to the GCB the same information that is reported to FinCEN and to resubmit its updated AML policies. On September 17, 2015, the settlement agreement was approved by the Nevada Gaming Commission. CEOC continues to cooperate with the Department of Justice in its investigation of this matter. Caesars is party to other ordinary and routine litigation incidental to our business. We do not expect the outcome of any such litigation to have a material effect on our consolidated financial position, results of operations, or cash flows, as we do not believe it is reasonably possible that we will incur material losses as a result of such litigation. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements During 2016, we adopted Account Standards Update No. 2015-02, Consolidation: Amendments to the Consolidation Analysis (see Note 2 ). The FASB issued the following authoritative guidance amending the FASB Accounting Standards Codification. Revenue Recognition - May 2014 (amended April 2016) : Created a new Topic 606, Revenue from Contracts with Customers . The new guidance is intended to clarify the principles for recognizing revenue and to develop a common revenue standard for United States GAAP applicable to revenue transactions. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Existing industry guidance will be eliminated, including revenue recognition guidance specific to the gaming industry. In addition, interim and annual disclosures will be substantially revised. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We currently anticipate adopting this standard effective January 1, 2017. We are currently assessing the impact the adoption of this standard will have on our financial statements; however, we expect that the accounting for the Total Rewards customer loyalty program and casino promotional allowances will be affected. Going Concern - August 2014 : Amended the existing requirements for disclosing information about an entity’s ability to continue as a going concern. This guidance explicitly requires management to assess an entity’s ability to continue as a going concern and to provide related footnote disclosure in certain circumstances. This guidance is effective for annual reporting periods ending after December 15, 2016, and for annual and interim reporting periods thereafter. Early adoption is permitted. We do not believe the adoption of this standard will have any effect on our financial statements, as we have concluded that we have substantial doubt regarding our ability to continue as a going concern, irrespective of the new requirements. Recognition and Measurement of Financial Instruments - January 2016 : Amended certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other things, they require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation) to be measured at fair value with any changes in fair value recognized in net income and simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted on certain provisions. We are currently assessing the effect the adoption of this standard will have on our financial statements. Leases - February 2016 : The new guidance requires lease obligations to be recognized on the balance sheet. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. We are currently assessing the effect the adoption of this standard will have on our financial statements. Stock Compensation - March 2016 : Amended the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted with certain provisions. We currently anticipate adopting the amended guidance for the second quarter of 2016. We are currently assessing the affect the adoption will have on our financial statements. |
Property and Equipment (Notes)
Property and Equipment (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment (In millions) March 31, 2016 December 31, 2015 Land and land improvements $ 3,584 $ 3,584 Buildings, riverboats, and improvements 4,153 4,134 Furniture, fixtures, and equipment 1,351 1,326 Construction in progress 73 59 Total property and equipment 9,161 9,103 Less: accumulated depreciation (1,601 ) (1,505 ) Total property and equipment, net $ 7,560 $ 7,598 Depreciation Expense and Capitalized Interest Three Months Ended March 31, (In millions) 2016 2015 Depreciation expense (1) $ 97 $ 75 Capitalized interest — 3 ____________________ (1) Included in depreciation and amortization and corporate expense. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in Carrying Value of Goodwill and other Intangible Assets Amortizing Intangible Assets Non-Amortizing Intangible Assets (In millions) Goodwill Other Balance as of December 31, 2015 $ 395 $ 1,696 $ 148 Amortization (22 ) — — Balance as of March 31, 2016 $ 373 $ 1,696 $ 148 Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill March 31, 2016 December 31, 2015 (Dollars in millions) Weighted Average Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Customer relationships 5.1 $ 917 $ (606 ) $ 311 $ 917 $ (589 ) $ 328 Contract rights 8.8 3 (1 ) 2 3 (1 ) 2 Developed technology 2.0 86 (53 ) 33 86 (49 ) 37 Gaming rights 8.1 52 (25 ) 27 52 (24 ) 28 $ 1,058 $ (685 ) 373 $ 1,058 $ (663 ) 395 Non-amortizing Gaming rights 22 22 Trademarks 126 126 148 148 Total intangible assets other than goodwill $ 521 $ 543 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Investments (In millions) Balance Level 1 Level 2 Level 3 March 31, 2016 Assets: Equity securities $ 3 $ 3 $ — $ — Government bonds 49 — 49 — Total assets at fair value $ 52 $ 3 $ 49 $ — December 31, 2015 Assets: Equity securities $ 4 $ 4 $ — $ — Government bonds 67 — 67 — Total assets at fair value $ 71 $ 4 $ 67 $ — Investments primarily consist of equity and debt securities held by our captive insurance entities that are traded in active markets, have readily determined market values and have maturity dates of greater than three months from the date of purchase. The majority of these investments are primarily used as collateral for several escrow and trust agreements with third-party beneficiaries and are recorded in deferred charges and other in our balance sheets while a portion is included in prepayments and other current assets. As of March 31, 2016 and December 31, 2015 , gross unrealized gains and losses on marketable securities were not material. Derivative Instruments CEOC had eight interest rate swap agreements that expired, which we settled for $17 million during the first quarter of 2015. Interest expense related to the derivatives was $7 million in the first quarter of 2015. We have not entered into any additional derivative transactions since these swaps expired. |
Contractual Commitments Contrac
Contractual Commitments Contractual Commitments (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Contractual Commitments and Contingent Liabilities Contractual Commitments Except as described in Note 1 , during the three months ended March 31, 2016 , we have not entered into any material contractual commitments outside of the ordinary course of business that have materially changed our contractual commitments as compared to December 31, 2015 . Contingent Liabilities Self-Insurance We are self-insured for workers compensation and other risk insurance with a total estimated self-insurance liability of $154 million , and estimated employee medical insurance claims of $11 million have been funded through CEOC as of March 31, 2016 . Deferred Compensation and Employee Benefits Deferred Compensation Plans As of March 31, 2016 , certain current and former employees of Caesars, and our subsidiaries and affiliates, have balances under the Harrah’s Entertainment, Inc. Executive Supplemental Savings Plan (“ESSP”), the Harrah’s Entertainment, Inc. Executive Supplemental Savings Plan II (“ESSP II”), the Park Place Entertainment Corporation Executive Deferred Compensation Plan, the Harrah’s Entertainment, Inc. Deferred Compensation Plan, and the Harrah’s Entertainment, Inc. Executive Deferred Compensation Plan (“EDCP”). These plans are deferred compensation plans that allow certain employees an opportunity to save for retirement and other purposes. Each of the plans is now frozen and is no longer accepting contributions. However, participants may still earn returns on existing plan balances based upon their selected investment alternatives, which are reflected in their deferral accounts. Plan obligations in respect of all of these plans were included in Caesars’ financial statements as liabilities prior to the deconsolidation of CEOC. As of March 31, 2016 , Caesars has recorded in the accompanying financial statements $43 million in liabilities, representing the estimate of its obligations under the ESSP and ESSP II and for certain former directors and employees who had employment agreements with Harrah’s Entertainment, Inc. (the predecessor to CEC) and participated in the EDCP. The additional liability in respect of the other plans described above that Caesars has not recorded is approximately $30 million , as we determined that this portion of the liability was attributable to CEOC. Trust Assets CEC is a party to a trust agreement and an escrow agreement, each structured as so-called “rabbi trust” arrangements, which hold assets that may be used to satisfy obligations under the deferred compensation plans above. Amounts held pursuant to the trust agreement and the escrow agreement were approximately $64 million and $54 million , respectively, as of March 31, 2016 . The assets held pursuant to the trust agreement have been reflected as long-term restricted assets on the accompanying balance sheets. The assets held pursuant to the escrow agreement have not been reflected on the accompanying balance sheets as we continue to assess the escrow agreement and the propriety of the funds that were contributed in accordance with the agreement. The amounts recorded as assets and liabilities are based upon Caesars’ current conclusions regarding ownership of assets and obligation to pay liabilities in respect of the plans and trust assets described above. These amounts may change as a result of many factors, including but not limited to the following: further analyses by Caesars, events occurring in connection with discussions with CEOC creditors, and CEOC’s Chapter 11 cases. Such changes, if they occur, could eliminate or reduce the assets or liabilities recorded on Caesars’ balance sheet, increase the asset for all or some portion of the assets held pursuant to the escrow agreement, or increase the liabilities not recorded. Caesars believes that it may have claims to all or some portion of the assets held pursuant to the escrow agreement. |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt March 31, 2016 December 31, 2015 (In millions) Face Value Book Value Book Value CERP $ 4,681 $ 4,617 $ 4,627 CGP 2,366 2,303 2,337 Total Debt 7,047 6,920 6,964 Current Portion of Long-Term Debt (150 ) (150 ) (187 ) Long-Term Debt $ 6,897 $ 6,770 $ 6,777 Unamortized discounts and deferred finance charges $ 127 $ 132 Fair value $ 6,273 Current Portion of Long-Term Debt The current portion of long-term debt is $150 million as of March 31, 2016 . For CERP, the current portion of long-term debt is $112 million , which includes the $75 million outstanding under CERP’s revolving credit facility as well as principal payments on its senior secured loan, other unsecured borrowings, and capitalized lease obligations. For CGP, the current portion of long-term debt is $38 million , which includes the $15 million outstanding under the CGPH revolving credit facility as well as principal payments on term loans, special improvement district bonds, and various capitalized lease obligations. Borrowings under the revolving credit facilities are each subject to separate note agreements executed based on the provisions of the applicable credit facility agreements, and each note has a contractual maturity of less than one year. The applicable credit facility agreements each have a contractual maturity of greater than one year, and we have the ability to rollover the outstanding principal balances on a long-term basis; however, we currently intend to repay the principal balances within the following 12 months. Amounts borrowed under the revolving credit facilities are intended to satisfy short term liquidity needs and are classified as current. Fair Value We estimated the fair value of debt based on borrowing rates available as of March 31, 2016 for debt with similar terms and maturities, 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. Annual Estimated Debt Service Requirements (In millions) Remaining 2016 2017 2018 2019 2020 Thereafter Total Principal CERP $ 30 $ 101 $ 25 $ 25 $ 3,350 $ 1,150 $ 4,681 CGP 18 36 25 201 300 1,786 2,366 Total principal 48 137 50 226 3,650 2,936 7,047 Estimated Interest CERP 340 380 380 380 390 130 2,000 CGP 150 180 180 180 160 150 1,000 Total interest 490 560 560 560 550 280 3,000 Principal and Interest CERP 370 481 405 405 3,740 1,280 6,681 CGP 168 216 205 381 460 1,936 3,366 Total principal and interest $ 538 $ 697 $ 610 $ 786 $ 4,200 $ 3,216 $ 10,047 CERP Debt March 31, 2016 December 31, 2015 (Dollars in millions) Final Maturity Rate(s) (1) Face Value Book Value Book Value CERP Credit Facility CERP Term Loan (2) 2020 7.00% $ 2,444 $ 2,399 $ 2,403 CERP Revolving Credit Facility (3) 2018 variable 75 75 80 CERP Notes CERP First Lien Notes 2020 8.00% 1,000 992 992 CERP Second Lien Notes 2021 11.00% 1,150 1,139 1,138 Capitalized Lease Obligations and other to 2017 various 12 12 14 Total CERP Debt 4,681 4,617 4,627 Current Portion of CERP Long-Term Debt (112 ) (112 ) (117 ) CERP Long-Term Debt $ 4,569 $ 4,505 $ 4,510 __________________________ (1) Interest rate is fixed, except where noted. (2) Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1% floor. The rate is set at the 1% floor as of March 31, 2016. (3) Variable interest rate for amounts currently borrowed is determined by adding LIBOR to a base rate of 6.00%. CGP Debt March 31, 2016 December 31, 2015 (Dollars in millions) Final Maturity Rate(s) (1) Face Value Book Value Book Value CGPH Credit Facilities CGPH Senior Secured Term Loan (2) 2021 6.25% $ 1,154 $ 1,124 $ 1,126 CGPH Senior Secured Revolving Credit Facility (3) 2019 variable 15 15 45 CGPH Notes 2022 9.38% 675 660 660 Horseshoe Baltimore Credit and FF&E Facilities Horseshoe Baltimore Credit Facility (4) 2020 8.25% 299 288 288 Horseshoe Baltimore Revolving Facility Loan (5) 2018 variable — — — Horseshoe Baltimore FF&E Facility (4) 2019 8.75% 26 26 27 Cromwell Credit Facility (4) 2019 11.00% 175 169 169 Other Secured Debt 2018 8.00% 5 4 4 Special Improvement District Bonds 2037 5.30% 14 14 14 Capital Lease Obligations and other 2016 to 2017 various 3 3 4 Total CGP Debt 2,366 2,303 2,337 Current Portion of CGP Long-Term Debt (38 ) (38 ) (70 ) CGP Long-Term Debt $ 2,328 $ 2,265 $ 2,267 ___________________ (1) Interest rate is fixed, except where noted. (2) Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1% floor. The rate is set at the 1% floor as of March 31, 2016. (3) Variable interest rate calculated as LIBOR plus 5.25%. (4) Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1.25% floor. The rate is set at the 1.25% floor as of March 31, 2016. (5) Variable interest rate calculated as LIBOR plus 7.00%. Terms of Outstanding Debt Restrictive Covenants The CERP Notes, CERP Credit Facilities, CGPH Senior Secured Term Loan, CGPH Notes, Horseshoe Baltimore Credit and FF&E Facilities, and Cromwell Credit Facility all include negative covenants, subject to certain exceptions, and contain affirmative covenants and events of default, subject to exceptions, baskets and thresholds (including equity cure provisions in the case of the CERP Credit Facilities, Horseshoe Baltimore Credit and FF&E Facilities, and the Cromwell Credit Facility), all of the preceding being customary in nature. The restrictive covenants also require that we maintain Senior Secured Leverage Ratios (“SSLR”) as shown in the table below. SSLR is defined as the ratio of first lien senior secured net debt to earnings before interest, taxes, depreciation and amortization, adjusted as defined. Credit Facility Covenant Type Effective Period Requirement CERP Credit Facilities CERP Maximum SSLR From inception 8.00 to 1.00 CGPH Senior Secured Term Loan CGPH Maximum SSLR From inception 6.00 to 1.00 Horseshoe Baltimore Credit and FF&E Facilities (1) CBAC Maximum SSLR Q1 - Q4 2016 7.50 to 1.00 CBAC Maximum SSLR Q1 - Q4 2017 6.00 to 1.00 CBAC Maximum SSLR Q1 2018 and thereafter 4.75 to 1.00 Cromwell Credit Facility Cromwell Maximum SSLR Q2 2015 - Q1 2016 5.25 to 1.00 Cromwell Maximum SSLR Q2 2016 - Q1 2017 5.00 to 1.00 Cromwell Maximum SSLR Q2 2017 and thereafter 4.75 to 1.00 ________________________________ (1) CBAC Borrower, LLC (“CBAC”) is a joint venture in which Caesars Baltimore Investment Company, LLC (“CBIC”) holds an interest. CBIC is a wholly owned subsidiary of CGP. Guarantees CERP has pledged a significant portion of its assets as collateral under the notes and facilities. The CERP Notes are co-issued, as well as fully and unconditionally guaranteed, jointly and severally, by Caesars Entertainment Resort Properties, LLC (parent entity) and each of its wholly-owned subsidiaries on a senior secured basis. The CGPH Senior Secured Term Loan is guaranteed by the direct parent of CGPH and certain subsidiaries of CGPH, and is secured by the direct parent’s equity interest in CGPH and substantially all of the existing and future assets of CGPH and the subsidiary guarantors. The CGPH Notes are secured by substantially all of the existing and future property and assets of CGPH and the subsidiary guarantors (subject to exceptions), and are guaranteed by CGPH and certain subsidiaries (subject to exceptions). The Horseshoe Baltimore Credit Facility is secured by substantially all material assets of CBAC and its wholly-owned domestic subsidiaries. The Horseshoe Baltimore FF&E Facility is secured by the FF&E that was purchased with the proceeds. The Cromwell Credit Facility is secured by the assets of the Cromwell. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic earnings per share is computed by dividing the applicable income amounts by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing the applicable income amounts by the sum of weighted-average number of shares of common shares outstanding and dilutive potential common shares. For periods in which Caesars generated net losses, the weighted-average basic shares outstanding was used in calculating diluted loss per share because using diluted shares would be anti-dilutive to loss per share. Basic and Dilutive Net Earnings Per Share Reconciliation Three Months Ended March 31, (In millions, except per share data) 2016 2015 Income/(loss) from continuing operation, net of income taxes $ (308 ) $ 6,779 Loss from discontinued operation, net of income taxes — (7 ) Net income/(loss) attributable to Caesars $ (308 ) $ 6,772 Weighted average common share outstanding 145 145 Dilutive potential common shares: Stock options — 2 Weighted average common shares and dilutive potential common shares 145 147 Basic income/(loss) per share from continuing operations $ (2.12 ) $ 46.86 Basic loss per share from discontinued operations — (0.05 ) Basic income/(loss) per share $ (2.12 ) $ 46.81 Diluted income/(loss) per share from continuing operations $ (2.12 ) $ 46.17 Diluted loss per share from discontinued operations — (0.05 ) Diluted income/(loss) per share $ (2.12 ) $ 46.12 Weighted-Average Number of Anti-Dilutive Shares Excluded from Calculation of EPS Three Months Ended March 31, (In millions) 2016 2015 Stock options 11 3 Restricted stock units and awards 6 1 Total anti-dilutive common shares 17 4 |
Casino Promotional Allowances
Casino Promotional Allowances | 3 Months Ended |
Mar. 31, 2016 | |
Promotional Allowance [Abstract] | |
Casino Promotional Allowances | Casino Promotional Allowances The retail value of accommodations, food and beverage, and other services furnished to guests without charge is included in gross revenues and then deducted as casino promotional allowances. The estimated cost of providing such casino promotional allowances is included in casino expenses. Estimated Retail Value of Casino Promotional Allowances Three Months Ended March 31, (In millions) 2016 2015 Food and Beverage $ 73 $ 84 Rooms 60 64 Other 7 9 $ 140 $ 157 Estimated Cost of Providing Casino Promotional Allowances Three Months Ended March 31, (In millions) 2016 2015 Food and Beverage $ 44 $ 52 Rooms 20 23 Other 3 5 $ 67 $ 80 |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Caesars Entertainment Stock-Based Compensation We maintain long-term incentive plans for management, other personnel, and key service providers. The plans allow for granting stock-based compensation awards, based on CEC common stock (NASDAQ symbol “CZR”), including time-based and performance-based stock options, restricted stock units, restricted stock awards, stock grants, or a combination of awards. Composition of Stock-Based Compensation Expense Three Months Ended March 31, (In millions) 2016 2015 Corporate expense $ 8 $ 14 Property, general, administrative, and other 2 1 Total stock-based compensation expense $ 10 $ 15 Stock Option Activity March 31, 2016 December 31, 2015 Options Wtd Avg Exercise Price Options Wtd Avg Exercise Price Outstanding at end of period 10,424,431 $ 11.75 10,638,219 $ 12.90 Restricted Stock Unit Activity March 31, 2016 December 31, 2015 Units Wtd Avg Fair Value Units Wtd Avg Fair Value Outstanding at end of period 10,127,034 $ 9.32 6,329,435 $ 12.06 Granted during 2016 5,052,202 6.27 N/A N/A CIE Stock-Based Compensation CIE grants stock-based compensation awards in CIE common stock to its employees, directors, service providers and consultants in accordance with the Caesars Interactive Entertainment, Inc. Amended and Restated Management Equity Incentive Plan which is intended to promote the interests of CIE and its shareholders by providing key employees, directors, service providers and consultants with an incentive to encourage their continued employment or service and improve the growth and profitability of CIE. CIE has granted stock options and warrants, restricted shares, and restricted stock units to its employees and service providers. These programs are classified as liability-based instruments and are re-measured at their fair value at each reporting date. Stock-based compensation expense attributable to CIE is recorded in property, general, administrative, and other expenses in the statements of operations and totaled $28 million and $13 million for the three months ended March 31, 2016 and 2015, respectively. As of the March 31, 2016 and December 31, 2015 , the liability related to CIE’s stock-based compensation awards was $124 million and $107 million , respectively. The current portion is recorded in accrued expenses and other current liabilities on our balance sheets, while the long-term portion is recorded in deferred credits and other liabilities. Stock Option Activity March 31, 2016 December 31, 2015 Options Wtd Avg Exercise Price Options Wtd Avg Exercise Price Outstanding at end of period 20,899 $ 9,805.35 21,057 $ 9,584.64 Granted during 2016 263 17,370.00 N/A N/A Restricted Stock Unit Activity March 31, 2016 December 31, 2015 Units Wtd Avg Fair Value Units Wtd Avg Fair Value Outstanding at end of period 4,418 $ 7,803.53 4,539 $ 7,827.24 Granted during 2016 58 15,740.00 N/A N/A |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Caesars’ provision for income taxes during the 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. We have utilized a discrete effective tax rate method, as allowed by ASC 740-270 “ Income Taxes, Interim Reporting, ” to calculate taxes for the three months ended March 31, 2016 and 2015. We determined that as small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate, the historical method would not provide a reliable estimate for the three months ended March 31, 2016 and 2015. Income Tax Allocation Three Months Ended March 31, (Dollars in millions) 2016 2015 Income/(loss) from continuing operations, before income taxes $ (234 ) $ 6,996 Income tax provision $ (40 ) $ (192 ) Effective tax rate (17.1 )% 2.7 % We classify reserves for tax uncertainties within accrued expenses and deferred credits and other in our consolidated condensed 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 and 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 the existing deferred tax assets. We have provided a valuation allowance on certain federal and state deferred tax assets that were not deemed realizable based upon estimates of future taxable income. The effective tax rate for the three months ended March 31, 2016 differed from the expected federal tax benefit of 35% primarily due to losses from continuing operations not tax benefitted. The tax expense giving rise to the negative effective tax rate for the three months ended March 31, 2016 was primarily due to the profitable operations of CIE which are not consolidated with CEC for federal, state, or foreign tax purposes. The effective tax rate for the three months ended March 31, 2015 differed from the expected federal tax benefit of 35% primarily due to the nontaxable portion of the gain on deconsolidation of CEOC. The amounts recorded as tax assets, tax liabilities, tax reserves and tax provision reflect CEC’s conclusion that certain challenged transactions identified in Note 1 were negotiated in good faith and the Caesars tax consolidated group received fair value for assets transferred. These amounts could change if litigation and potential claims related to the challenged transactions are resolved unfavorably. If that occurs, changes may be necessary to reduce tax assets and increase tax liabilities, tax reserves and the tax provision recorded in CEC’s financial statements. Such changes could be material. Management cannot predict the various potential outcomes of pending litigation and other potential claims, thus cannot estimate the reasonably possible amount or range of effects, if any, to the recorded tax accounts. We file income tax returns, including returns for our subsidiaries, with federal, state, and foreign jurisdictions. We are under regular and recurring audit by the Internal Revenue Service on open tax positions, and it is possible that the amount of the liability for unrecognized tax benefits could change during the next 12 months. |
Segment Reporting Segment Repor
Segment Reporting Segment Reporting (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | Segment Reporting We view each casino property and CIE as operating segments and currently aggregate all such casino properties and CIE into three reportable segments based on management’s view, which aligns with their ownership and underlying credit structures: CERP, CGP Casinos, and CIE. CGP Casinos is comprised of all subsidiaries of CGP excluding CIE. CIE is comprised of the subsidiaries that operate CGP’s social and mobile games operations and WSOP. CEOC remained a reportable segment until its deconsolidation effective January 15, 2015 (see Note 1 ). The results of each reportable segment presented below are consistent with the way Caesars management assesses these results and allocates resources, which is a consolidated view that adjusts for the impact of certain transactions between reportable segments within Caesars, as described below. Accordingly, the results of certain reportable segments presented in this filing differ from the financial statement information presented in their standalone filings. “Other” includes parent, consolidating, and other adjustments to reconcile to consolidated Caesars results. Condensed Statements of Operations - By Segment Three Months Ended March 31, 2016 (In millions) CERP CGP Casinos CIE (1) Other Elimination Caesars Other revenues $ 73 $ 46 $ — $ 1 $ (5 ) $ 115 Net revenues 528 416 228 1 (5 ) 1,168 Depreciation and amortization 73 39 7 — — 119 Income/(loss) from operations 78 63 54 (41 ) — 154 Interest expense 99 51 1 1 (1 ) 151 Deconsolidation and restructuring of CEOC and other (1 ) 1 — (236 ) (1 ) (237 ) Income tax benefit/(provision) 6 — (32 ) (14 ) — (40 ) ____________________ (1) Includes foreign net revenues of $188 million . Three Months Ended March 31, 2015 (In millions) CEOC CERP CGP Casinos CIE (1) Other Elimination Caesars Other revenues $ 24 $ 71 $ 37 $ — $ 4 $ (10 ) $ 126 Net revenues 164 528 390 177 8 (14 ) 1,253 Depreciation and amortization 11 49 34 7 1 — 102 Income/(loss) from operations 9 106 164 41 (176 ) — 144 Interest expense 87 101 46 2 2 — 238 Deconsolidation and restructuring of CEOC and other — — (2 ) — 7,092 — 7,090 Income tax provision — (2 ) — (13 ) (177 ) — (192 ) ____________________ (1) Includes foreign net revenues of $141 million . Property EBITDA - by Segment Property earnings before interest, taxes, depreciation and amortization (“EBITDA”) is presented as a supplemental measure of the Company’s performance. Property EBITDA is defined as revenues less property operating expenses and is comprised of net income/(loss) before (i) interest expense, net of interest capitalized and interest income, (ii) income tax (benefit)/provision, (iii) depreciation and amortization, (iv) corporate expenses, and (v) certain items that we do not consider indicative of its ongoing operating performance at an operating property level. In evaluating Property 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 Property EBITDA should not be construed as an inference that future results will be unaffected by unusual or unexpected items. Property EBITDA is a non-GAAP 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). Property EBITDA may not be comparable to similarly titled measures reported by other companies within the industry. Property EBITDA is included because management uses Property EBITDA to measure performance and allocate resources, and believes that Property EBITDA provides investors with additional information consistent with that used by management. Three Months Ended March 31, 2016 (In millions) CERP CGP Casinos CIE Other Elimination Caesars Net income/(loss) attributable to company $ (16 ) $ 13 $ 17 $ (322 ) $ — $ (308 ) Net income attributable to noncontrolling interests — — 4 30 — 34 Income tax (benefit)/provision (6 ) — 32 14 — 40 Deconsolidation and restructuring of CEOC and other 1 (1 ) — 236 1 237 Interest expense 99 51 1 1 (1 ) 151 Depreciation and amortization 73 39 7 — — 119 Corporate expense 11 7 — 24 (1 ) 41 Other operating costs 2 1 — 19 — 22 Property EBITDA $ 164 $ 110 $ 61 $ 2 $ (1 ) $ 336 Three Months Ended March 31, 2015 (In millions) CEOC CERP CGP Casinos CIE Other Elimination Caesars Net income/(loss) attributable to company $ (85 ) $ 3 $ 121 $ 21 $ 6,712 $ — $ 6,772 Net income/(loss) attributable to noncontrolling interests — — (5 ) 5 25 — 25 Loss from discontinued operations, net of income taxes 7 — — — — — 7 Income tax provision — 2 — 13 177 — 192 Deconsolidation and restructuring of CEOC and other — — 2 — (7,092 ) — (7,090 ) Interest expense 87 101 46 2 2 — 238 Depreciation and amortization 11 49 34 7 1 — 102 Corporate expense 7 12 7 — 21 — 47 Other operating costs 4 2 (114 ) — 157 (1 ) 48 Property EBITDA $ 31 $ 169 $ 91 $ 48 $ 3 $ (1 ) $ 341 Condensed Balance Sheets - By Segment As of March 31, 2016 (In millions) CERP CGP Casinos CIE (1) Other Elimination Caesars Total assets $ 7,062 $ 4,170 $ 472 $ 1,320 $ (884 ) $ 12,140 Total liabilities 6,105 2,571 252 1,355 (89 ) 10,194 ____________________ (1) Includes foreign assets of $276 million and foreign liabilities of $58 million . As of December 31, 2015 (In millions) CERP CGP Casinos CIE (1) Other Elimination Caesars Total assets $ 7,028 $ 4,174 $ 485 $ 1,409 $ (901 ) $ 12,195 Total liabilities 6,073 2,583 269 1,155 (118 ) 9,962 ____________________ (1) Includes foreign assets of $281 million and foreign liabilities of $57 million . |
Related Party Transactions (Not
Related Party Transactions (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Three Months Ended March 31, (In millions) 2016 2015 Transactions with Sponsors and their affiliates Reimbursements and expenses $ 6 $ 2 Expenses paid to Sponsors’ portfolio companies 1 2 Expenses paid on behalf of CAC 6 10 Transactions with CEOC Shared services allocated expenses to CEOC 91 75 Shared services allocated expenses from CEOC 25 15 Management fees incurred 10 9 Octavius Tower lease revenue 9 7 Other expenses incurred 7 3 Transactions with Sponsors and their Affiliates The members of Hamlet Holdings LLC (“Hamlet Holdings”) are comprised of individuals affiliated with Apollo Global Management, LLC and affiliates of TPG Capital LP (collectively, the “Sponsors”). As of March 31, 2016 , Hamlet Holdings beneficially owned a majority of CEC’s common stock pursuant to an irrevocable proxy providing Hamlet Holdings with sole voting and sole dispositive power over those shares, and, as a result, the Sponsors have the power to elect all of CEC’s directors. Reimbursements and Expenses CEC has a services agreement with the Sponsors relating to the provision of financial and strategic advisory services and consulting services. The Sponsors have granted an ongoing waiver of the monitoring fees for management services; however, we reimburse the Sponsors for expenses they incur related to these management services and certain legal expenses. The reimbursed expenses are included in corporate expense and are included in the table above. Sponsors’ Portfolio Companies We may engage in transactions with companies owned or controlled by affiliates of the Sponsors in the normal course of business. Amounts paid to the Sponsors’ portfolio companies are included in the table above and we believe such transactions are conducted at fair value. In addition, certain entities affiliated with or under the control of our Sponsors may from time to time transact in and hold our debt securities, and participate in any modifications of such instruments on terms available to any other holder of our debt. Caesars Acquisition Company As described in Note 2 , CAC is the sole voting member of CGP, our consolidated VIE, and common control exists between CAC and Caesars through the majority beneficial ownership of both by Hamlet Holdings. Pursuant to the operating agreement of CGP, CGP pays certain expenses on behalf of CAC. These expenses, which are included in the table above, commenced in 2013 and are reflected as distributions to a noncontrolling interest holder in the consolidated statements of equity. Transactions with CEOC As described in Note 2 , upon its filing for reorganization under Chapter 11 of the Bankruptcy Code and its subsequent deconsolidation, transactions with CEOC are no longer eliminated in consolidation and are considered related party transactions for Caesars. A summary of these transactions is provided in the table above. CEOC Shared Services Agreement Pursuant to a shared services agreement, CEOC provides Caesars with certain corporate and administrative services, and the costs of these services are allocated to Caesars. Certain services are now provided by CES (see Note 1 ). Prior to the deconsolidation of CEOC, we were self-insured for employee medical (health, dental and vision) and risk products, including workers compensation and surety bonds, and our insurance claims and reserves included accruals of estimated settlements for known claims, as well as accruals of actuarial estimates of incurred but not reported claims. We continue to be self-insured for workers compensation and other risk insurance as of March 31, 2016 . Caesars Entertainment provides insurance coverage to CEOC and receives insurance premiums on an installment basis, which are intended to cover claims processed on CEOC’s behalf. We prepay CEOC for estimated employee medical insurance claims. Services Joint Venture CES provides certain corporate and administrative services to its Members, and the costs of these services are allocated among the Members, which include CEOC. CEOC reimburses CES for the allocated costs. The CES allocated costs include amounts for insurance coverage (see Note 1 ). Management Fees CGP pays a management fee to CEOC for the CGP properties that are managed by CEOC or CES. Octavius Tower Lease Agreement Under the Octavius Tower lease agreement, CEOC leases the Octavius Tower at Caesars Palace from CERP and pays rent totaling $35 million annually through expiration in April 2026. LINQ Access and Parking Easement Lease Agreement Under the LINQ Access and Parking Easement lease agreement, CEOC leases the parking lot behind The LINQ promenade and The LINQ Hotel to CERP and CGP. Together, CERP and CGP pay approximately $2 million annually, subject to a 3% annual increase through expiration in April 2028. Amounts are included within other expenses incurred in the table above. Service Provider Fee CEOC, CERP and CGP have a shared services agreement under which CERP and CGP pay for certain indirect corporate support costs. CEOC is authorized to charge CERP and CGP for an amount equal to 21.8% and 12.8% , respectively, of unallocated corporate support costs. Amounts are included within other expenses incurred in the table above. Cross Marketing and Trademark License Agreement CIE and CEOC have a Cross Marketing and Trademark License Agreement in effect until December 31, 2026, unless terminated earlier pursuant to the terms of the agreement. The agreement grants CIE the exclusive right to use various brands of Caesars Entertainment in connection with social and mobile games and online real money gaming in exchange for a 3.0% royalty. This agreement also provides for cross-marketing and promotional activities between CIE and CEOC, including participation by CIE in Caesars’ Total Rewards loyalty program. CEOC also receives a revenue share from CIE for customer referrals. Amounts are included within other expenses incurred in the table above. Equity Incentive Awards Caesars maintains an equity incentive awards plan under which CEC may issue time-based and performance-based stock options, restricted stock units and restricted stock awards to CEOC employees. Although awards under the plan result in the issuance of shares of CEC, because CEOC is no longer a consolidated subsidiary of CEC, we have accounted for these awards as nonemployee awards subsequent to the date of deconsolidation. Employee Benefit Plans CEC maintains a defined contribution savings and retirement plan in which employees of CEOC may participate. The plan provides for, among other things, pre-tax and after-tax contributions by employees. Under the plan, participating employees may elect to contribute up to 50% of their eligible earnings (subject to certain IRS and plan limits). In addition, employees subject to collective bargaining agreements receive benefits through the multi-employer pension plans sponsored by the organization in which they are a member. The expenses related to contributions made to the plans on their behalf are allocated to the properties at which they are employed. Total Rewards Loyalty Program CEOC’s customer loyalty program, Total Rewards, offers incentives to customers from their spending related to on-property entertainment expenses, including gaming, hotel, dining, and retail shopping at our and CEOC’s resort properties located in the U.S. and Canada. Under the program, customers are able to accumulate, or bank, Reward Credits over time that they may redeem at their discretion under the terms of the program. The Reward Credit balance will be forfeited if the customer does not earn a Reward Credit over the prior six-month period. As a result of the ability of the customer to bank the Reward Credits, CEOC estimates the cost of fulfilling the redemption of Reward Credits, after consideration of estimated forfeitures (referred to as “breakage”) based upon the cost of historical redemptions. The estimated value of Reward Credits is expensed as the Reward Credits are earned by customers and is included in direct casino expense. The total estimated cost is accrued by CEOC, with the incremental charges related to our casino properties included in due to affiliates, net in the accompanying balance sheets. Due from/to Affiliates Amounts due to or from affiliates for each counterparty represent the net receivable or payable as of the end of the reporting period primarily resulting from the transactions described above and are settled on a net basis by each counterparty in accordance with the legal and contractual restrictions governing transactions by and among Caesars’ consolidated entities and CEOC. The amount due from CEOC represents the maximum exposure to loss as a result of Caesars’ involvement with CEOC. As of March 31, 2016 and December 31, 2015 , due from affiliates was $34 million and $32 million , respectively, and represented a receivable due to CES from CEOC for shared services performed on behalf of CEOC. As of both March 31, 2016 and December 31, 2015 , due to affiliates was $16 million and represented a payable due to CEOC primarily from CGP for shared services performed on their behalf. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events [OPEN] |
Accounting Policies Accounting
Accounting Policies Accounting Policies - (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated condensed financial statements of Caesars have been prepared under the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable for interim periods, and therefore, do not include all information and footnotes necessary for complete financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”). The results for the interim periods reflect all adjustments (consisting primarily of normal recurring adjustments) that management considers necessary for a fair presentation of financial position, results of operations, and cash flows. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2016 fiscal year. All amounts presented in these consolidated condensed financial statements and notes thereto exclude the operating results and cash flows of CEOC subsequent to January 15, 2015 , and the assets, liabilities, and equity of CEOC as of March 31, 2016 . |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | We consolidate into our financial statements the accounts of 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 (1) affiliates that are more than 50% owned are consolidated; (2) 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 (3) investments in affiliates of 20% or less are generally accounted for using the cost method. |
Revenue Recognition, Revenue Reductions [Policy Text Block] | The retail value of accommodations, food and beverage, and other services furnished to guests without charge is included in gross revenues and then deducted as casino promotional allowances. The estimated cost of providing such casino promotional allowances is included in casino expenses. |
Segment Reporting, Policy [Policy Text Block] | We view each casino property and CIE as operating segments and currently aggregate all such casino properties and CIE into three reportable segments based on management’s view, which aligns with their ownership and underlying credit structures: CERP, CGP Casinos, and CIE. CGP Casinos is comprised of all subsidiaries of CGP excluding CIE. CIE is comprised of the subsidiaries that operate CGP’s social and mobile games operations and WSOP. CEOC remained a reportable segment until its deconsolidation effective January 15, 2015 (see Note 1 ). The results of each reportable segment presented below are consistent with the way Caesars management assesses these results and allocates resources, which is a consolidated view that adjusts for the impact of certain transactions between reportable segments within Caesars, as described below. Accordingly, the results of certain reportable segments presented in this filing differ from the financial statement information presented in their standalone filings. |
Organization - Restructuring Ex
Organization - Restructuring Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Restructuring and Support Expenses | Summary of Restructuring and Support Expenses Accrued as of (Dollars in millions) Initial Plan Terms March 31, 2016 December 31, 2015 Amounts to First Lien Creditors (Accrued) Forbearance fees (“Fixed Payments”) in connection with the Restructuring (1) $ 406 $ 320 $ 320 Contingent payment to CEOC if there is insufficient liquidity at the Effective Date (2) $ 75 — — “Additional Consideration” for the period from February 1, 2016 through the Effective Date for the benefit of the First Lien Noteholders (3) $25 per month 325 162 “Upfront Payments” to certain First Lien Bank Lenders (4) $ 63 2 2 “Bank Guaranty Settlement” to purchase from the Settling First Lien Bank Lenders 100% of their respective First Lien Bank Obligations that survive the Effective Date (5) $ 460 460 386 Total accrued $ 1,107 $ 870 Amounts to First Lien Creditors (Due On or After Effective Date) (6) Purchase up to all of OpCo (7) equity pursuant to put rights $ 700 -- -- Purchase up to 14.8% of PropCo (8) equity pursuant to the put rights $ 269 -- -- Give PropCo a right of first refusal on all new domestic non-Las Vegas gaming facility opportunities, with CEC or OpCo leasing such properties -- -- -- Give PropCo a call right to purchase listed properties: Harrah’s Atlantic City and Harrah’s Laughlin -- -- -- Guarantee OpCo’s monetary obligations to PropCo under the leases -- -- -- Enter into a guaranty of collection of the OpCo debt received by the First Lien Bank Lenders and First Lien Noteholders -- -- -- Additional Potential Commitments (9) Principal amount of 5% convertible notes to be issued by CEC Up to $450 -- -- Up to 9.8% of PropCo equity purchased pursuant to the PropCo put rights and/or cash in an amount equal to the shortfall from 9.8% of PropCo equity (at Initial Plan value) if the PropCo put rights are not fully exercised -- -- -- The consideration CAC would have received under the Initial Plan on account of CEOC’s unsecured notes held by CAC -- -- -- Give PropCo a call right to purchase Harrah’s New Orleans -- -- -- ____________________ (1) $86 million was paid in fourth quarter of 2015. (2) Amount has not been accrued because CEOC currently has excess liquidity and is expected to maintain this position. (3) For the purposes of determining this amount, the Effective Date is estimated to be in the first quarter of 2017; however this date is outside of our control and is highly subject to change. (4) $61 million was paid in fourth quarter of 2015. (5) Amount payable on the Effective Date is subject to the excess cash held by CEOC at Emergence. (6) No amounts have been accrued because amounts are not a settlement of past actions, do not relate to any existing contingencies, and are not legally enforceable at this time. In addition, for certain items, CEC will receive valuable consideration in return and therefore these payments will not be expensed when incurred. We expect to accrue such items on or subsequent to the Effective Date. (7) “OpCo” refers to the proposed entity resulting from the Restructuring that will operate the CEOC Properties under a lease with PropCo. “CEOC Properties” refers to those properties owned by CEOC as of the Petition Date. Holders of over 85% of the First Lien Notes have already indicated their intent to put their OpCo equity to CEC once received. (8) “PropCo” refers to the proposed entity resulting from the Restructuring that will own the CEOC Properties as of the Effective Date. (9) Under the terms of the Initial Plan, CEC will pay amounts if certain classes of CEOC’s unsecured creditors vote in favor of the Initial Plan and if the Initial Plan is approved by the Bankruptcy Court. |
Liquidity | Cash and Available Revolver Capacity March 31, 2016 (In millions) CERP CES CGP Other Cash and cash equivalents $ 211 $ 64 $ 951 $ 218 Revolver capacity 270 — 160 — Revolver capacity drawn or committed to letters of credit (75 ) — (15 ) — Total $ 406 $ 64 $ 1,096 $ 218 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | (In millions) March 31, 2016 December 31, 2015 Land and land improvements $ 3,584 $ 3,584 Buildings, riverboats, and improvements 4,153 4,134 Furniture, fixtures, and equipment 1,351 1,326 Construction in progress 73 59 Total property and equipment 9,161 9,103 Less: accumulated depreciation (1,601 ) (1,505 ) Total property and equipment, net $ 7,560 $ 7,598 |
Depreciation Expense Table [Table Text Block] | Depreciation Expense and Capitalized Interest Three Months Ended March 31, (In millions) 2016 2015 Depreciation expense (1) $ 97 $ 75 Capitalized interest — 3 ____________________ (1) Included in depreciation and amortization and corporate expense |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Value of Goodwill and Other Intangible Assets | Changes in Carrying Value of Goodwill and other Intangible Assets Amortizing Intangible Assets Non-Amortizing Intangible Assets (In millions) Goodwill Other Balance as of December 31, 2015 $ 395 $ 1,696 $ 148 Amortization (22 ) — — Balance as of March 31, 2016 $ 373 $ 1,696 $ 148 |
Gross Carrying Value and Accumulated Amortization of Finite-Lived Intangible Assets Other Than Goodwill | Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill March 31, 2016 December 31, 2015 (Dollars in millions) Weighted Average Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Customer relationships 5.1 $ 917 $ (606 ) $ 311 $ 917 $ (589 ) $ 328 Contract rights 8.8 3 (1 ) 2 3 (1 ) 2 Developed technology 2.0 86 (53 ) 33 86 (49 ) 37 Gaming rights 8.1 52 (25 ) 27 52 (24 ) 28 $ 1,058 $ (685 ) 373 $ 1,058 $ (663 ) 395 Non-amortizing Gaming rights 22 22 Trademarks 126 126 148 148 Total intangible assets other than goodwill $ 521 $ 543 |
Gross Carrying Value and Accumulated Amortization of Indefinite-Lived Intangible Assets Other Than Goodwill | Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill March 31, 2016 December 31, 2015 (Dollars in millions) Weighted Average Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing Customer relationships 5.1 $ 917 $ (606 ) $ 311 $ 917 $ (589 ) $ 328 Contract rights 8.8 3 (1 ) 2 3 (1 ) 2 Developed technology 2.0 86 (53 ) 33 86 (49 ) 37 Gaming rights 8.1 52 (25 ) 27 52 (24 ) 28 $ 1,058 $ (685 ) 373 $ 1,058 $ (663 ) 395 Non-amortizing Gaming rights 22 22 Trademarks 126 126 148 148 Total intangible assets other than goodwill $ 521 $ 543 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Investments | Investments (In millions) Balance Level 1 Level 2 Level 3 March 31, 2016 Assets: Equity securities $ 3 $ 3 $ — $ — Government bonds 49 — 49 — Total assets at fair value $ 52 $ 3 $ 49 $ — December 31, 2015 Assets: Equity securities $ 4 $ 4 $ — $ — Government bonds 67 — 67 — Total assets at fair value $ 71 $ 4 $ 67 $ — |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Instrument [Line Items] | |
Summary of Debt by Financing Structure | March 31, 2016 December 31, 2015 (In millions) Face Value Book Value Book Value CERP $ 4,681 $ 4,617 $ 4,627 CGP 2,366 2,303 2,337 Total Debt 7,047 6,920 6,964 Current Portion of Long-Term Debt (150 ) (150 ) (187 ) Long-Term Debt $ 6,897 $ 6,770 $ 6,777 Unamortized discounts and deferred finance charges $ 127 $ 132 Fair value $ 6,273 |
Annual Estimated Debt Service Requirements | Annual Estimated Debt Service Requirements (In millions) Remaining 2016 2017 2018 2019 2020 Thereafter Total Principal CERP $ 30 $ 101 $ 25 $ 25 $ 3,350 $ 1,150 $ 4,681 CGP 18 36 25 201 300 1,786 2,366 Total principal 48 137 50 226 3,650 2,936 7,047 Estimated Interest CERP 340 380 380 380 390 130 2,000 CGP 150 180 180 180 160 150 1,000 Total interest 490 560 560 560 550 280 3,000 Principal and Interest CERP 370 481 405 405 3,740 1,280 6,681 CGP 168 216 205 381 460 1,936 3,366 Total principal and interest $ 538 $ 697 $ 610 $ 786 $ 4,200 $ 3,216 $ 10,047 |
Credit Facility | Credit Facility Covenant Type Effective Period Requirement CERP Credit Facilities CERP Maximum SSLR From inception 8.00 to 1.00 CGPH Senior Secured Term Loan CGPH Maximum SSLR From inception 6.00 to 1.00 Horseshoe Baltimore Credit and FF&E Facilities (1) CBAC Maximum SSLR Q1 - Q4 2016 7.50 to 1.00 CBAC Maximum SSLR Q1 - Q4 2017 6.00 to 1.00 CBAC Maximum SSLR Q1 2018 and thereafter 4.75 to 1.00 Cromwell Credit Facility Cromwell Maximum SSLR Q2 2015 - Q1 2016 5.25 to 1.00 Cromwell Maximum SSLR Q2 2016 - Q1 2017 5.00 to 1.00 Cromwell Maximum SSLR Q2 2017 and thereafter 4.75 to 1.00 ________________________________ (1) CBAC Borrower, LLC (“CBAC”) is a joint venture in which Caesars Baltimore Investment Company, LLC (“CBIC”) holds an interest. CBIC is a wholly owned subsidiary of CGP. |
Caesars Entertainment Resort Properties [Member] | |
Debt Instrument [Line Items] | |
Summary of Debt by Financing Structure | CERP Debt March 31, 2016 December 31, 2015 (Dollars in millions) Final Maturity Rate(s) (1) Face Value Book Value Book Value CERP Credit Facility CERP Term Loan (2) 2020 7.00% $ 2,444 $ 2,399 $ 2,403 CERP Revolving Credit Facility (3) 2018 variable 75 75 80 CERP Notes CERP First Lien Notes 2020 8.00% 1,000 992 992 CERP Second Lien Notes 2021 11.00% 1,150 1,139 1,138 Capitalized Lease Obligations and other to 2017 various 12 12 14 Total CERP Debt 4,681 4,617 4,627 Current Portion of CERP Long-Term Debt (112 ) (112 ) (117 ) CERP Long-Term Debt $ 4,569 $ 4,505 $ 4,510 __________________________ (1) Interest rate is fixed, except where noted. (2) Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1% floor. The rate is set at the 1% floor as of March 31, 2016. (3) Variable interest rate for amounts currently borrowed is determined by adding LIBOR to a base rate of 6.00%. |
Caesars Growth Partners, LLC [Member] | |
Debt Instrument [Line Items] | |
Summary of Debt by Financing Structure | CGP Debt March 31, 2016 December 31, 2015 (Dollars in millions) Final Maturity Rate(s) (1) Face Value Book Value Book Value CGPH Credit Facilities CGPH Senior Secured Term Loan (2) 2021 6.25% $ 1,154 $ 1,124 $ 1,126 CGPH Senior Secured Revolving Credit Facility (3) 2019 variable 15 15 45 CGPH Notes 2022 9.38% 675 660 660 Horseshoe Baltimore Credit and FF&E Facilities Horseshoe Baltimore Credit Facility (4) 2020 8.25% 299 288 288 Horseshoe Baltimore Revolving Facility Loan (5) 2018 variable — — — Horseshoe Baltimore FF&E Facility (4) 2019 8.75% 26 26 27 Cromwell Credit Facility (4) 2019 11.00% 175 169 169 Other Secured Debt 2018 8.00% 5 4 4 Special Improvement District Bonds 2037 5.30% 14 14 14 Capital Lease Obligations and other 2016 to 2017 various 3 3 4 Total CGP Debt 2,366 2,303 2,337 Current Portion of CGP Long-Term Debt (38 ) (38 ) (70 ) CGP Long-Term Debt $ 2,328 $ 2,265 $ 2,267 ___________________ (1) Interest rate is fixed, except where noted. (2) Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1% floor. The rate is set at the 1% floor as of March 31, 2016. (3) Variable interest rate calculated as LIBOR plus 5.25%. (4) Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1.25% floor. The rate is set at the 1.25% floor as of March 31, 2016. (5) Variable interest rate calculated as LIBOR plus 7.00%. |
Earnings Per Share Earnings P29
Earnings Per Share Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Dilutive Net Earnings Per Share Reconciliation | Basic and Dilutive Net Earnings Per Share Reconciliation Three Months Ended March 31, (In millions, except per share data) 2016 2015 Income/(loss) from continuing operation, net of income taxes $ (308 ) $ 6,779 Loss from discontinued operation, net of income taxes — (7 ) Net income/(loss) attributable to Caesars $ (308 ) $ 6,772 Weighted average common share outstanding 145 145 Dilutive potential common shares: Stock options — 2 Weighted average common shares and dilutive potential common shares 145 147 Basic income/(loss) per share from continuing operations $ (2.12 ) $ 46.86 Basic loss per share from discontinued operations — (0.05 ) Basic income/(loss) per share $ (2.12 ) $ 46.81 Diluted income/(loss) per share from continuing operations $ (2.12 ) $ 46.17 Diluted loss per share from discontinued operations — (0.05 ) Diluted income/(loss) per share $ (2.12 ) $ 46.12 |
Weighted-Average Number of Anti-Dilutive Shares Excluded from Calculation of EPS | Weighted-Average Number of Anti-Dilutive Shares Excluded from Calculation of EPS Three Months Ended March 31, (In millions) 2016 2015 Stock options 11 3 Restricted stock units and awards 6 1 Total anti-dilutive common shares 17 4 |
Casino Promotional Allowances (
Casino Promotional Allowances (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Promotional Allowance [Abstract] | |
Estimated Retail Value of Casino Promotional Allowances | Estimated Retail Value of Casino Promotional Allowances Three Months Ended March 31, (In millions) 2016 2015 Food and Beverage $ 73 $ 84 Rooms 60 64 Other 7 9 $ 140 $ 157 |
Estimated Cost of Providing Casino Promotional Allowances | Estimated Cost of Providing Casino Promotional Allowances Three Months Ended March 31, (In millions) 2016 2015 Food and Beverage $ 44 $ 52 Rooms 20 23 Other 3 5 $ 67 $ 80 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Caesars Interactive Entertainment [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Option Activity | Stock Option Activity March 31, 2016 December 31, 2015 Options Wtd Avg Exercise Price Options Wtd Avg Exercise Price Outstanding at end of period 20,899 $ 9,805.35 21,057 $ 9,584.64 Granted during 2016 263 17,370.00 N/A N/A |
Restricted Stock-Unit Activity | Restricted Stock Unit Activity March 31, 2016 December 31, 2015 Units Wtd Avg Fair Value Units Wtd Avg Fair Value Outstanding at end of period 4,418 $ 7,803.53 4,539 $ 7,827.24 Granted during 2016 58 15,740.00 N/A N/A |
Total Caesars Stockholders’ Equity/(Deficit) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Composition of Stock-Based Compensation Expense | Composition of Stock-Based Compensation Expense Three Months Ended March 31, (In millions) 2016 2015 Corporate expense $ 8 $ 14 Property, general, administrative, and other 2 1 Total stock-based compensation expense $ 10 $ 15 |
Stock Option Activity | Stock Option Activity March 31, 2016 December 31, 2015 Options Wtd Avg Exercise Price Options Wtd Avg Exercise Price Outstanding at end of period 10,424,431 $ 11.75 10,638,219 $ 12.90 |
Restricted Stock-Unit Activity | Restricted Stock Unit Activity March 31, 2016 December 31, 2015 Units Wtd Avg Fair Value Units Wtd Avg Fair Value Outstanding at end of period 10,127,034 $ 9.32 6,329,435 $ 12.06 Granted during 2016 5,052,202 6.27 N/A N/A |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Allocation | Income Tax Allocation Three Months Ended March 31, (Dollars in millions) 2016 2015 Income/(loss) from continuing operations, before income taxes $ (234 ) $ 6,996 Income tax provision $ (40 ) $ (192 ) Effective tax rate (17.1 )% 2.7 % |
Segment Reporting Segment Rep33
Segment Reporting Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Condensed Statements of Operations - By Segment | Condensed Statements of Operations - By Segment Three Months Ended March 31, 2016 (In millions) CERP CGP Casinos CIE (1) Other Elimination Caesars Other revenues $ 73 $ 46 $ — $ 1 $ (5 ) $ 115 Net revenues 528 416 228 1 (5 ) 1,168 Depreciation and amortization 73 39 7 — — 119 Income/(loss) from operations 78 63 54 (41 ) — 154 Interest expense 99 51 1 1 (1 ) 151 Deconsolidation and restructuring of CEOC and other (1 ) 1 — (236 ) (1 ) (237 ) Income tax benefit/(provision) 6 — (32 ) (14 ) — (40 ) ____________________ (1) Includes foreign net revenues of $188 million . Three Months Ended March 31, 2015 (In millions) CEOC CERP CGP Casinos CIE (1) Other Elimination Caesars Other revenues $ 24 $ 71 $ 37 $ — $ 4 $ (10 ) $ 126 Net revenues 164 528 390 177 8 (14 ) 1,253 Depreciation and amortization 11 49 34 7 1 — 102 Income/(loss) from operations 9 106 164 41 (176 ) — 144 Interest expense 87 101 46 2 2 — 238 Deconsolidation and restructuring of CEOC and other — — (2 ) — 7,092 — 7,090 Income tax provision — (2 ) — (13 ) (177 ) — (192 ) ____________________ (1) Includes foreign net revenues of $141 million . |
Property EBITDA - By Segment | Three Months Ended March 31, 2016 (In millions) CERP CGP Casinos CIE Other Elimination Caesars Net income/(loss) attributable to company $ (16 ) $ 13 $ 17 $ (322 ) $ — $ (308 ) Net income attributable to noncontrolling interests — — 4 30 — 34 Income tax (benefit)/provision (6 ) — 32 14 — 40 Deconsolidation and restructuring of CEOC and other 1 (1 ) — 236 1 237 Interest expense 99 51 1 1 (1 ) 151 Depreciation and amortization 73 39 7 — — 119 Corporate expense 11 7 — 24 (1 ) 41 Other operating costs 2 1 — 19 — 22 Property EBITDA $ 164 $ 110 $ 61 $ 2 $ (1 ) $ 336 Three Months Ended March 31, 2015 (In millions) CEOC CERP CGP Casinos CIE Other Elimination Caesars Net income/(loss) attributable to company $ (85 ) $ 3 $ 121 $ 21 $ 6,712 $ — $ 6,772 Net income/(loss) attributable to noncontrolling interests — — (5 ) 5 25 — 25 Loss from discontinued operations, net of income taxes 7 — — — — — 7 Income tax provision — 2 — 13 177 — 192 Deconsolidation and restructuring of CEOC and other — — 2 — (7,092 ) — (7,090 ) Interest expense 87 101 46 2 2 — 238 Depreciation and amortization 11 49 34 7 1 — 102 Corporate expense 7 12 7 — 21 — 47 Other operating costs 4 2 (114 ) — 157 (1 ) 48 Property EBITDA $ 31 $ 169 $ 91 $ 48 $ 3 $ (1 ) $ 341 Condensed Balance Sheets - By Segment As of March 31, 2016 (In millions) CERP CGP Casinos CIE (1) Other Elimination Caesars Total assets $ 7,062 $ 4,170 $ 472 $ 1,320 $ (884 ) $ 12,140 Total liabilities 6,105 2,571 252 1,355 (89 ) 10,194 |
Condensed Balance Sheets - By Segment | Condensed Balance Sheets - By Segment As of March 31, 2016 (In millions) CERP CGP Casinos CIE (1) Other Elimination Caesars Total assets $ 7,062 $ 4,170 $ 472 $ 1,320 $ (884 ) $ 12,140 Total liabilities 6,105 2,571 252 1,355 (89 ) 10,194 ____________________ (1) Includes foreign assets of $276 million and foreign liabilities of $58 million . As of December 31, 2015 (In millions) CERP CGP Casinos CIE (1) Other Elimination Caesars Total assets $ 7,028 $ 4,174 $ 485 $ 1,409 $ (901 ) $ 12,195 Total liabilities 6,073 2,583 269 1,155 (118 ) 9,962 ____________________ (1) Includes foreign assets of $281 million and foreign liabilities of $57 million . |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Three Months Ended March 31, (In millions) 2016 2015 Transactions with Sponsors and their affiliates Reimbursements and expenses $ 6 $ 2 Expenses paid to Sponsors’ portfolio companies 1 2 Expenses paid on behalf of CAC 6 10 Transactions with CEOC Shared services allocated expenses to CEOC 91 75 Shared services allocated expenses from CEOC 25 15 Management fees incurred 10 9 Octavius Tower lease revenue 9 7 Other expenses incurred 7 3 |
Organization - Restructuring 35
Organization - Restructuring Expenses (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Oct. 07, 2015 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Accrued restructuring and support expenses | $ 1,142 | $ 905 | ||
Caesars Entertainment Operating Company [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrued restructuring and support expenses | 1,107 | 870 | ||
Caesars Entertainment Operating Company [Member] | Other Restructuring [Member] | Nonoperating Income (Expense) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Restructuring Costs | [1] | 25 | ||
Payments for Restructuring | 86 | |||
Caesars Entertainment Operating Company [Member] | Other Restructuring [Member] | Restructuring Charges [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | 61 | |||
OpCo [Member] | Initial Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Commitment | [2],[3] | 700 | ||
PropCo [Member] | Initial Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Commitment | [2],[4] | $ 269 | ||
Business Restructuring Reserves [Member] | OpCo [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Equity Method Investment, Ownership Percentage | [3] | 100.00% | ||
Business Restructuring Reserves [Member] | PropCo [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Equity Method Investment, Ownership Percentage | [4] | 14.80% | ||
Fixed Costs [Member] | Caesars Entertainment Operating Company [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrued restructuring and support expenses | [5] | $ 320 | 320 | $ 406 |
Contingent Payments [Member] | Caesars Entertainment Operating Company [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrued restructuring and support expenses | [6] | 0 | 0 | 75 |
Additional Consideration [Member] | Caesars Entertainment Operating Company [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrued restructuring and support expenses | [1] | 325 | 162 | |
Upfront Payments [Member] | Caesars Entertainment Operating Company [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrued restructuring and support expenses | [7] | 2 | 2 | 63 |
Bank Guaranty Settlement [Member] | Caesars Entertainment Operating Company [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrued restructuring and support expenses | [8] | $ 460 | 386 | $ 460 |
Convertible Debt [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other Commitment | [9] | $ 450 | ||
[1] | For the purposes of determining this amount, the Effective Date is estimated to be in the first quarter of 2017; however this date is outside of our control and is highly subject to change. | |||
[2] | No amounts have been accrued because amounts are not a settlement of past actions, do not relate to any existing contingencies, and are not legally enforceable at this time. In addition, for certain items, CEC will receive valuable consideration in return and therefore these payments will not be expensed when incurred. We expect to accrue such items on or subsequent to the Effective Date. | |||
[3] | “OpCo” refers to the proposed entity resulting from the Restructuring that will operate the CEOC Properties under a lease with PropCo. “CEOC Properties” refers to those properties owned by CEOC as of the Petition Date. Holders of over 85% of the First Lien Notes have already indicated their intent to put their OpCo equity to CEC once received. | |||
[4] | “PropCo” refers to the proposed entity resulting from the Restructuring that will own the CEOC Properties as of the Effective Date. | |||
[5] | $86 million was paid in fourth quarter of 2015. | |||
[6] | Amount has not been accrued because CEOC currently has excess liquidity and is expected to maintain this position. | |||
[7] | $61 million was paid in fourth quarter of 2015. | |||
[8] | Amount payable on the Effective Date is subject to the excess cash held by CEOC at Emergence. | |||
[9] | Under the terms of the Initial Plan, CEC will pay amounts if certain classes of CEOC’s unsecured creditors vote in favor of the Initial Plan and if the Initial Plan is approved by the Bankruptcy Court. |
Organization Organization - Liq
Organization Organization - Liquidity (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,444 | $ 1,338 | $ 1,555 | $ 2,806 |
Caesars Entertainment Resort Properties [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 211 | |||
Line of Credit Facility, Maximum Borrowing Capacity | (270) | |||
Line Of Credit Outstanding Amount Committed To Letters Of Credit | 75 | |||
Liquidity, Total | 406 | |||
Caesars Enterprise Services [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 64 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 0 | |||
Line Of Credit Outstanding Amount Committed To Letters Of Credit | 0 | |||
Liquidity, Total | 64 | |||
Caesars Growth Partners, LLC [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 951 | |||
Line of Credit Facility, Maximum Borrowing Capacity | (160) | |||
Line Of Credit Outstanding Amount Committed To Letters Of Credit | 15 | |||
Liquidity, Total | 1,096 | |||
Parent Company [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 218 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 0 | |||
Line Of Credit Outstanding Amount Committed To Letters Of Credit | 0 | |||
Liquidity, Total | $ 218 |
Organization Organization - Add
Organization Organization - Additional Information (Details) $ in Millions | 3 Months Ended | |||||||||
Mar. 31, 2016USD ($)businessCasinos | Mar. 31, 2016USD ($)businessCasinos | Mar. 31, 2016USD ($)businessCasinos | Mar. 31, 2016USD ($)businessCasinosbusiness_segments | Mar. 31, 2016USD ($)businessCasinossegment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Oct. 07, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Substantial Doubt about Going Concern, Conditions or Events | We have identified the following circumstances that raise substantial doubt about CEC’s ability to continue as a going concern (which are described in more detail below): we have limited cash available to meet financial commitments of CEC, primarily resulting from significant expenditures made to (1) defend the Company against the litigation matters disclosed below and (2) support a plan of reorganization for CEOC (the “Restructuring”); we have made material future commitments to support the Restructuring described below; and we are a defendant in litigation relating to certain CEOC transactions dating back to 2010 and other legal matters (see Note 3) that could result in one or more adverse rulings against us. | |||||||||
Number of Reportable Segments | 3 | 3 | ||||||||
Notes Payable, Related Parties, Current | $ 35 | $ 35 | $ 35 | $ 35 | $ 35 | |||||
Long-term Debt, Gross | 7,047 | 7,047 | 7,047 | 7,047 | 7,047 | |||||
Contractual Obligation, Due in Next Fiscal Year | 538 | 538 | 538 | 538 | 538 | |||||
Contractual Obligation, Excluding Latest Fiscal Year | 9,500 | 9,500 | 9,500 | 9,500 | 9,500 | |||||
Cash and cash equivalents | 1,444 | 1,444 | 1,444 | 1,444 | 1,444 | $ 1,555 | $ 1,338 | $ 2,806 | ||
Decrease in restricted cash | 109 | $ 37 | ||||||||
Accrued restructuring and support expenses | 1,142 | 1,142 | 1,142 | 1,142 | 1,142 | 905 | ||||
Caesars Entertainment Operating Company [Member] | ||||||||||
Accrued restructuring and support expenses | 1,107 | 1,107 | 1,107 | 1,107 | 1,107 | 870 | ||||
Caesars Entertainment Operating Company [Member] | Bank Guaranty Settlement [Member] | ||||||||||
Accrued restructuring and support expenses | [1] | 460 | 460 | 460 | 460 | 460 | $ 386 | $ 460 | ||
Caesars Entertainment Operating Company [Member] | Minimum [Member] | Report of Bankruptcy Examiner [Member] | ||||||||||
Loss Contingency, Estimate of Possible Loss | 3,600 | 3,600 | 3,600 | 3,600 | 3,600 | |||||
Caesars Entertainment Operating Company [Member] | Maximum [Member] | Report of Bankruptcy Examiner [Member] | ||||||||||
Loss Contingency, Estimate of Possible Loss | $ 5,100 | 5,100 | $ 5,100 | $ 5,100 | $ 5,100 | |||||
Casino Properties and Development [Member] | ||||||||||
Decrease in restricted cash | $ 100 | |||||||||
Caesars Entertainment Operating Company [Member] | ||||||||||
Number Of Casinos Managed | business | 28 | 28 | 28 | 28 | 28 | |||||
Third Party [Member] | ||||||||||
Number Of Casinos Managed | Casinos | 9 | 9 | 9 | 9 | 9 | |||||
Parent Company [Member] | ||||||||||
Cash and cash equivalents | $ 218 | $ 218 | $ 218 | $ 218 | $ 218 | |||||
Parent Company [Member] | Affiliated Entity [Member] | ||||||||||
Cash and cash equivalents | $ 96 | $ 96 | $ 96 | $ 96 | $ 96 | |||||
UNITED STATES | ||||||||||
Number Of Casinos Operated Or Managed | Casinos | 12 | 12 | 12 | 12 | 12 | |||||
UNITED STATES | LAS VEGAS, NEVADA | Geographic Concentration Risk [Member] | ||||||||||
Number Of Casinos Operated Or Managed | Casinos | 8 | 8 | 8 | 8 | 8 | |||||
UNITED STATES | LAS VEGAS, NEVADA | Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||||||||
Concentration Risk, Percentage | 53.00% | |||||||||
Indian Land [Member] | Third Party [Member] | ||||||||||
Number Of Casinos Managed | Casinos | 4 | 4 | 4 | 4 | 4 | |||||
[1] | Amount payable on the Effective Date is subject to the excess cash held by CEOC at Emergence. |
Basis of Presentation and Con38
Basis of Presentation and Consolidation Basis of Presentation and Consolidation (Details) - USD ($) shares in Millions | 3 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Net revenues | $ 1,168,000,000 | $ 1,253,000,000 | |
Net income/(loss) attributable to company | $ (308,000,000) | 6,772,000,000 | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 57.40% | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | ||
Subsequent Event [Member] | |||
Variable Interest Entity [Line Items] | |||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 61.20% | ||
Caesars Growth Partners, LLC [Member] | Common Class B [Member] | Subsequent Event [Member] | |||
Variable Interest Entity [Line Items] | |||
Non-Voting Membership Units, Issued | 32 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Caesars Growth Partners, LLC [Member] | |||
Variable Interest Entity [Line Items] | |||
Net revenues | 643,000,000 | 567,000,000 | |
Net income/(loss) attributable to company | $ 3,000,000 | $ (2,000,000) |
Litigation - Additional Informa
Litigation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Jun. 30, 2010 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||||
Loss Contingency, Opinion of Counsel | We believe that the claims and demands described above against CEC are without merit and we intend to defend the Company vigorously. The claims against CEOC have been stayed due to the Chapter 11 process and, except as described above, the actions against CEC have been allowed to continue. See additional disclosure relating to CEOC’s Chapter 11 filing in Note 1. We believe that the Noteholder Disputes and the Parent Guarantee Lawsuits have a reasonably possible likelihood of an adverse outcome. Should these matters ultimately be resolved through litigation outside of the financial restructuring of CEOC (the “Financial Restructuring”), and should a court find in favor of the claimants in some or all of the Noteholder Disputes, such determination would likely lead to a CEC reorganization under Chapter 11 of the Bankruptcy Code (see Note 1). We are not able to estimate a range of reasonably possible losses should any of the Noteholder Disputes ultimately be resolved against us, although they could potentially exceed $11 billion. | ||||
Delaware Second Lien Lawsuit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Allegations | On August 4, 2014, Wilmington Savings Fund Society, FSB, solely in its capacity as successor Indenture Trustee for the 10.00% Second-Priority Senior Secured Notes due 2018 (the “10.00% Second-Priority Notes”), on behalf of itself and, it alleges, derivatively on behalf of CEOC, filed a lawsuit (the “Delaware Second Lien Lawsuit”) in the Court of Chancery in the State of Delaware against CEC and CEOC, CGP, CAC,CERP, CES, Eric Hession, Gary Loveman, Jeffrey D. Benjamin, David Bonderman, Kelvin L. Davis, Marc C. Rowan, David B. Sambur, and Eric Press. The lawsuit alleges claims for breach of contract, intentional and constructive fraudulent transfer, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and corporate waste. The lawsuit seeks (1) an award of money damages; (2) to void certain transfers, the earliest of which dates back to 2010; (3) an injunction directing the recipients of the assets in these transactions to return them to CEOC; (4) a declaration that CEC remains liable under the parent guarantee formerly applicable to the 10.00% Second-Priority Notes; (5) to impose a constructive trust or equitable lien on the transferred assets; and (6) an award to plaintiffs for their attorneys’ fees and costs. CEC believes this lawsuit is without merit and is defending itself vigorously. A motion to dismiss this action was filed by CEC and other defendants in September 2014, and the motion was argued in December 2014. During the pendency of its Chapter 11 bankruptcy proceedings, the action has been automatically stayed with respect to CEOC. The motion to dismiss with respect to CEC was denied on March 18, 2015. In a Verified Supplemental Complaint filed on August 3, 2015, the plaintiff stated that due to CEOC’s bankruptcy filing, the continuation of all claims was stayed pursuant to the bankruptcy except for Claims II, III, and X. These are claims against CEC only, for breach of contract in respect of the release of the parent guarantee formerly applicable to the CEOC 10.00% Second-Priority Notes, for declaratory relief in respect of the release of this guarantee, and for violations of the Trust Indenture Act in respect of the release of this guarantee. Fact discovery in the case is complete, and summary judgment briefing is underway. No trial date has been set. | ||||
Senior Unsecured Lawsuits [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Allegations | On September 3, 2014, holders of approximately $21 million of CEOC 6.50% Senior Unsecured Notes due 2016 and 5.75% Senior Unsecured Noted due 2017 (collectively, the “Senior Unsecured Notes”) filed suit in federal district court in Manhattan against CEC and CEOC, claiming broadly that an August 12, 2014 Note Purchase and Support Agreement between CEC and CEOC (on the one hand) and certain other holders of the Senior Unsecured Notes (on the other hand) impaired their own rights under the Trust Indenture Act of 1939 and the indentures governing the Senior Unsecured Notes. The lawsuit seeks both declaratory and monetary relief. On October 2, 2014, a holder of CEOC’s 6.50% Senior Unsecured Notes due 2016 purporting to represent a class of all persons who held these Notes from August 11, 2014 to the present filed a substantially similar suit in the same court, against the same defendants, relating to the same transactions. Both lawsuits (the “Senior Unsecured Lawsuits”) were assigned to the same judge. The claims against CEOC have been automatically stayed during its Chapter 11 bankruptcy proceedings. The court denied a motion to dismiss both lawsuits with respect to CEC. The parties have completed fact discovery with respect to both plaintiffs' claims against CEC. On October 23, 2015, plaintiffs in the Senior Unsecured Lawsuits moved for partial summary judgment, and on December 29, 2015, those motions were denied. On December 4, 2015, plaintiff in the action brought on behalf of holders of CEOC’s 6.50% Senior Unsecured Notes moved for class certification and briefing has been completed. The judge presiding over these cases recently retired, and a new judge has been appointed to preside over these lawsuits. That judge has set a new summary judgment briefing schedule for May and June of 2016 and has indicated his intention to rule on these summary judgment motions on or before July 22, 2016. Trial of remaining issues would take place beginning August 22, 2016. | ||||
February 13 Notice [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Allegations | On February 13, 2015, Caesars Entertainment received a Demand For Payment of Guaranteed Obligations (the “February 13 Notice”) from Wilmington Savings Fund Society, FSB, in its capacity as successor Trustee for CEOC’s 10.00% Second-Priority Notes. The February 13 Notice alleges that CEOC’s commencement of its voluntary Chapter 11 bankruptcy case constituted an event of default under the indenture governing the 10.00% Second-Priority Notes; that all amounts due and owing on the 10.00% Second-Priority Notes therefore immediately became payable; and that Caesars Entertainment is responsible for paying CEOC’s obligations on the 10.00% Second-Priority Notes, including CEOC’s obligation to timely pay all principal, interest, and any premium due on these notes, as a result of a parent guarantee provision contained in the indenture governing the notes that the February 13 Notice alleges is still binding. The February 13 Notice accordingly demands that Caesars Entertainment immediately pay Wilmington Savings Fund Society, FSB, cash in an amount of not less than $3.7 billion, plus accrued and unpaid interest (including without limitation the $184 million interest payment due December 15, 2014 that CEOC elected not to pay) and accrued and unpaid attorneys’ fees and other expenses. The February 13 Notice also alleges that the interest, fees and expenses continue to accrue. | ||||
February 18 Notice [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Allegations | On February 18, 2015, Caesars Entertainment received a Demand For Payment of Guaranteed Obligations (the “February 18 Notice”) from BOKF, N.A. (“BOKF”), in its capacity as successor Trustee for CEOC’s 12.75% Second-Priority Senior Secured Notes due 2018 (the “12.75% Second-Priority Notes”). The February 18 Notice alleges that CEOC’s commencement of its voluntary Chapter 11 bankruptcy case constituted an event of default under the indenture governing the 12.75% Second-Priority Notes; that all amounts due and owing on the 12.75% Second-Priority Notes therefore immediately became payable; and that CEC is responsible for paying CEOC’s obligations on the 12.75% Second-Priority Notes, including CEOC’s obligation to timely pay all principal, interest and any premium due on these notes, as a result of a parent guarantee provision contained in the indenture governing the notes that the February 18 Notice alleges is still binding. The February 18 Notice therefore demands that CEC immediately pay BOKF cash in an amount of not less than $750 million, plus accrued and unpaid interest, accrued and unpaid attorneys’ fees, and other expenses. The February 18 Notice also alleges that the interest, fees and expenses continue to accrue. | ||||
Merger Lawsuit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Allegations | On December 30, 2014, Nicholas Koskie, on behalf of himself and, he alleges, all others similarly situated, filed a lawsuit (the “Merger Lawsuit”) in the Clark County District Court in the State of Nevada against CAC, CEC and members of the CAC board of directors Marc Beilinson, Philip Erlanger, Dhiren Fonseca, Don Kornstein, Karl Peterson, Marc Rowan, and David Sambur (the individual defendants collectively, the “CAC Directors”). The Merger Lawsuit alleges claims for breach of fiduciary duty against the CAC Directors and aiding and abetting breach of fiduciary duty against CAC and CEC. It seeks (1) an order directing the CAC Directors to fulfill alleged fiduciary duties to CAC in connection with the proposed merger between CAC and CEC announced on December 22, 2014 (the “Proposed Merger”), specifically by announcing their intention to (a) cooperate with bona fide interested parties proposing alternative transactions, (b) ensure that no conflicts exist between the CAC Directors’ personal interests and their fiduciary duties to maximize shareholder value in the Proposed Merger, or resolve all such conflicts in favor of the latter, and (c) act independently to protect the interests of the shareholders; (2) an order directing the CAC Directors to account for all damages suffered or to be suffered by plaintiff and the putative class as a result of the Proposed Merger; and (3) an award to plaintiff for his costs and attorneys’ fees. It is unclear whether the Merger Lawsuit also seeks to enjoin the Proposed Merger. CEC believes that this lawsuit is without merit and will defend itself vigorously. The deadline to respond to the Merger Lawsuit has been adjourned without a date by agreement of the parties. | ||||
Hilton Matter [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Damages Awarded, Value | $ 54 | ||||
Loss Contingency, Estimate of Possible Loss | $ 19 | ||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 35 | ||||
Loss Contingency, Loss in Period | $ 25 | ||||
National Retirement Fund Lawsuit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Actions Taken by Plaintiff | Prior to the NRF’s vote to expel the Five Employers, the Five Employers reiterated their commitments to remain in the plan and not seek rejection of any collective bargaining agreement in which the obligation to contribute to NRF exists. The Five Employers were current with respect to pension contributions at the time of their expulsion, and are current with respect to pension contributions as of today pursuant to the Standstill Agreement referred to below. We have opposed the various NRF expulsion actions. On January 8, 2015, prior to the NRF’s vote to expel the Five Employers, CEC filed an action in the United States District Court for the Southern District of New York (the “S.D.N.Y.”) against the NRF and its Board of Trustees, seeking a declaratory judgment that they did not have the authority to expel the Five Employers and thus allegedly trigger withdrawal liability for the CEC Controlled Group (the “CEC Action”). On December 25, 2015, the District Judge entered an order dismissing the CEC Action on the ground that CEC’s claims in this action must first be arbitrated under ERISA. CEC has appealed this decision to the United States Court of Appeals for the Second Circuit. On March 6 and March 27, 2015, CEOC and certain of its subsidiaries filed in the CEOC bankruptcy proceedings two motions to void (a) the purported expulsion of the Five Employers and based thereon the alleged triggering of withdrawal liability for the non-debtor members of the CEC Controlled Group, and (b) a notice and payment demand for quarterly payments of withdrawal liability subsequently made by the NRF to certain non-debtor members of the CEC Controlled Group, respectively, on the ground that each of these actions violated the automatic stay (the “362 Motions”). On November 12, 2015, Bankruptcy Judge Goldgar issued a decision denying the 362 Motions on the ground that the NRF’s actions were directed at non-debtors and therefore did not violate the automatic stay. CEOC has appealed this decision to the federal district court in Chicago. On March 6, 2015, CEOC commenced an adversary proceeding against the NRF and its Board of Trustees in the Bankruptcy Court (the “Adversary Proceeding”). On March 11, 2015, CEOC filed a motion in that Adversary Proceeding to extend the automatic stay in the CEOC bankruptcy proceedings to apply to the NRF’s expulsion of the Five Employers (the “105 Motion”). Judge Goldgar has not yet decided the 105 Motion. On March 20, 2015, CEC, CEOC and CERP, on behalf of themselves and others, entered into a Standstill Agreement with the NRF and its Board of Trustees that, among other things, stayed each member of the CEC Controlled Group’s purported obligation to commence making quarterly payments of withdrawal liability and instead required the Five Employers to continue making monthly contribution payments to the NRF, unless and until each of the 362 Motions and the 105 Motion had been denied. As the 105 Motion has not yet been decided, the Standstill Agreement remains in effect. | ||||
Loss Contingency, Allegations | In January 2015, a majority of the Trustees of the National Retirement Fund (“NRF”), a multi-employer defined benefit pension plan, voted to expel the five indirect subsidiaries of CEC which were required to make contributions to the legacy plan of the NRF (the “Five Employers”). The NRF contended that the financial condition of the Five Employers’ controlled group (the “CEC Controlled Group”) and CEOC’s then-potential bankruptcy presented an “actuarial risk” to the plan because, depending on the outcome of any CEOC bankruptcy proceedings, CEC might no longer be liable to the plan for any partial or complete withdrawal liability. As a result, the NRF claimed that the expulsion of the Five Employers constituted a complete withdrawal of the CEC Controlled Group from the plan. CEOC, in its bankruptcy proceedings, has not rejected the contribution obligations of any of its subsidiary employers to the NRF, but we cannot make any prediction as to whether this will take place or not. The NRF has advised the CEC Controlled Group (which includes CERP) that the expulsion of the Five Employers has triggered a joint and several withdrawal liability with a present value of approximately $360 million, payable in 80 quarterly payments of about $6 million. | ||||
Loss Contingency, Actions Taken by Defendant | Also, on March 18, 2015, the NRF and its fund manager commenced a collection action in the S.D.N.Y. against CEC, CERP and all non-debtor members of the CEC Controlled Group for the payment of the first quarterly payment of withdrawal liability, which the NRF contended was due on March 15, 2015 (the “NRF Action”). | ||||
Loss Contingency, Actions Taken by Court, Arbitrator or Mediator | On December 25, 2015, the District Judge denied the defendant’s motion to dismiss the NRF Action on the ground that the arguments raised by the defendants must first be arbitrated under ERISA. On February 26, 2016, the NRF and its fund manager filed a motion for summary judgment against CEC and CERP for payment of the first quarterly payment of withdrawal liability and for interest, liquidated damages, attorneys’ fees and costs. This motion and CEC and CERP’s opposition thereto has been fully briefed, but no decision has been rendered. | ||||
Anti-Money Laundering Case [Member] | |||||
Loss Contingencies [Line Items] | |||||
Litigation Settlement, Amount | $ 1.5 | ||||
Loss Contingency, Allegations | In recent years, governmental authorities have been increasingly focused on anti-money laundering (“AML”) policies and procedures, with a particular focus on the gaming industry. In October 2013, CEOC’s subsidiary, Desert Palace, Inc. (the owner of and referred to herein as Caesars Palace), received a letter from the Financial Crimes Enforcement Network of the United States Department of the Treasury (“FinCEN”), stating that FinCEN was investigating Caesars Palace for alleged violations of the Bank Secrecy Act to determine whether it is appropriate to assess a civil penalty and/or take additional enforcement action against Caesars Palace. Caesars Palace responded to FinCEN’s letter in January 2014. Additionally, we were informed in October 2013 that a federal grand jury investigation regarding anti-money laundering practices of the Company and its subsidiaries had been initiated. CEC and Caesars Palace have been cooperating with FinCEN, the Department of Justice and the Nevada Gaming Control Board (the “GCB”) on this matter. On September 8, 2015, FinCEN announced a settlement pursuant to which Caesars Palace agreed to an $8 million civil penalty for its violations of the Bank Secrecy Act, which penalty shall be treated as a general unsecured claim in Caesars Palace’s bankruptcy proceedings. In addition, Caesars Palace agreed to conduct periodic external audits and independent testing of its AML compliance program, report to FinCEN on mandated improvements, adopt a rigorous training regime, and engage in a “look-back” for suspicious transactions. The terms of the FinCEN settlement were approved by the bankruptcy court on October 19, 2015. | ||||
Loss Contingency, Settlement Agreement, Terms | CEOC and the GCB reached a settlement on the same facts as above, wherein CEC agreed to pay $1.5 million and provide to the GCB the same information that is reported to FinCEN and to resubmit its updated AML policies. On September 17, 2015, the settlement agreement was approved by the Nevada Gaming Commission. | ||||
Guarantee Obligations [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Actions Taken by Court, Arbitrator or Mediator | On March 11, 2015, CEOC filed an adversary proceeding in bankruptcy court requesting that the Parent Guarantee Lawsuits be enjoined against all defendants through plan confirmation; in subsequent submissions, CEOC stated that it sought a temporary stay of those lawsuits until 60 days after the issuance of a final report by the Bankruptcy Examiner. CEOC argued that contemporaneous prosecution of related claims against CEC would impair the bankruptcy court’s jurisdiction over the Debtors’ reorganization by threatening the Debtors’ ability to recover estate property for the benefit of all creditors, diminishing the prospects of a successful reorganization, and depleting property of the estate. On July 22, 2015, the bankruptcy court denied CEOC’s request, and on October 6, 2015, this denial was affirmed by the United States District Court for the Northern District of Illinois. On December 23, 2015, the United States Court of Appeals for the Seventh Circuit vacated the denial of CEOC’s request to enjoin the Parent Guarantee Lawsuits and remanded the case for further proceedings. On February 26, 2016, the bankruptcy court granted CEOC’s motion for a temporary stay with respect to the New York Second Lien Lawsuit and the New York First Lien Lawsuit that had been scheduled to begin on March 14. The stay will remain in effect until May 9, 2016. None of the rulings on CEOC’s request to enjoin the Parent Guarantee Lawsuits addresses the merits of those actions. | ||||
Guarantee Obligations [Member] | Delaware First Lien Lawsuit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Allegations | On November 25, 2014, UMB Bank (“UMB”), as successor indenture trustee for CEOC's 8.50% Senior Secured Notes due 2020 (the “8.50% Senior Secured Notes”), filed a verified complaint (the “Delaware First Lien Lawsuit”) in Delaware Chancery Court against CEC, CEOC, CERP, CAC, CGP, CES, and against individual past and present Board members Loveman, Benjamin, Bonderman, Davis, Press, Rowan, Sambur, Hession, Colvin, Kleisner, Swann, Williams, Housenbold, Cohen, Stauber, and Winograd, alleging generally that defendants improperly stripped CEOC of certain assets, wrongfully effected a release of CEC’s parent guarantee of the 8.50% Senior Secured Notes and committed other wrongs. Among other things, UMB asked the court to appoint a receiver over CEOC. In addition, the suit pleads claims for fraudulent conveyances/transfers, insider preferences, illegal dividends, declaratory judgment (for breach of contract as regards to the parent guarantee and also as to certain covenants in the bond indenture), tortious interference with contract, breach of fiduciary duty, usurpation of corporate opportunities, and unjust enrichment, and seeks monetary, equitable and declaratory relief. The lawsuit has been automatically stayed with respect to CEOC during its Chapter 11 bankruptcy process. Pursuant to the First Lien Bond RSA, the lawsuit also has been stayed in its entirety, with the consent of all of the parties to it. The consensual stay will expire upon the termination of the First Lien Bond RSA. | ||||
Guarantee Obligations [Member] | New York Second Lien Lawsuit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Allegations | On March 3, 2015, BOKF filed a lawsuit (the “New York Second Lien Lawsuit”) against CEC in federal district court in Manhattan, in its capacity as successor trustee for CEOC’s 12.75% Second-Priority Notes. On June 15, 2015, UMB filed a lawsuit (the “New York First Lien Lawsuit”) against CEC, also in federal district court in Manhattan, in its capacity as successor trustee for CEOC’s 11.25% Senior Secured Notes due 2017, 8.50% Senior Secured Notes due 2020, and 9.00% Senior Secured Notes due 2020. Plaintiffs in these actions allege that CEOC’s filing of its voluntary Chapter 11 bankruptcy case constitutes an event of default under the indentures governing these notes, causing all principal and interest to become immediately due and payable, and that CEC is obligated to make those payments pursuant to parent guarantee provisions in the indentures governing these notes that plaintiffs allege are still binding. Both plaintiffs bring claims for violation of the Trust Indenture Act of 1939, breach of contract, breach of duty of good faith and fair dealing and for declaratory relief and BOKF brings an additional claim for intentional interference with contractual relations. The cases were both assigned to the same judge presiding over the other Parent Guarantee Lawsuits (as defined below) that are taking place in Manhattan. CEC filed its answer to the BOKF complaint on March 25, 2015, and to the UMB complaint on August 10, 2015. On June 25, 2015, and June 26, 2015, BOKF and UMB, respectively, moved for partial summary judgment, specifically on their claims alleging a violation of the Trust Indenture Act of 1939, seeking both declaratory relief and damages. On August 27, 2015, those motions were denied. The court, on its own motion, certified its order with respect to the interpretation of the Trust Indenture Act for interlocutory appeal to the United States Court of Appeals for the Second Circuit, and on December 22, 2015, the appellate court denied our motion for leave to appeal. On November 20, 2015, BOKF and UMB again moved for partial summary judgment. These motions likewise were denied. The judge presiding over these cases recently retired, and a new judge has been appointed to preside over these lawsuits. That judge has set a new summary judgment briefing schedule for May and June of 2016 and has indicated his intention to rule on these summary judgment motions on or before July 22, 2016. Trial of remaining issues would take place beginning August 22, 2016. | ||||
Guarantee Obligations [Member] | New York Senior Notes Lawsuit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Allegations | On October 20, 2015, Wilmington Trust, National Association (“Wilmington Trust”), filed a lawsuit (the “New York Senior Notes Lawsuit” and, together with the Delaware Second Lien Lawsuit, the Delaware First Lien Lawsuit, the Senior Unsecured Lawsuits, the New York Second Lien Lawsuit, and the New York First Lien Lawsuit, the “Parent Guarantee Lawsuits”) against CEC in federal district court in Manhattan in its capacity as successor indenture trustee for CEOC’s 10.75% Senior Notes due 2016 (the “10.75% Senior Notes”). Plaintiff alleges that CEC is obligated to make payment of amounts due on the 10.75% Senior Notes pursuant to a parent guarantee provision in the indenture governing those notes that plaintiff alleges is still in effect. Plaintiff raises claims for violations of the Trust Indenture Act of 1939, breach of contract, breach of the implied duty of good faith and fair dealing, and for declaratory judgment, and seeks monetary and declaratory relief. CEC filed its answer to the complaint on November 23, 2015. As with the other parent guaranty lawsuits taking place in Manhattan, the judge presiding over these cases recently retired, and a new judge has been appointed to preside over these lawsuits. That judge has set a new summary judgment briefing schedule for May and June of 2016 and has indicated his intention to rule on these summary judgment motions on or before July 22, 2016. Trial of remaining issues would take place beginning August 22, 2016. | ||||
Caesars Entertainment Operating Company [Member] | Anti-Money Laundering Case [Member] | |||||
Loss Contingencies [Line Items] | |||||
Litigation Settlement, Amount | $ 8 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 9,161 | $ 9,103 |
Less: accumulated depreciation | (1,601) | (1,505) |
Property and equipment, net | 7,560 | 7,598 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,584 | 3,584 |
Buildings, riverboats, and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4,153 | 4,134 |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,351 | 1,326 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 73 | $ 59 |
Property and Equipment - Deprec
Property and Equipment - Depreciation Expense and Capitalized Interest(Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Property, Plant and Equipment [Line Items] | |||
Capitalized Interest | $ 0 | $ 3 | |
Property, Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | [1] | $ 97 | $ 75 |
[1] | Included in depreciation and amortization and corporate expense |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Changes in Goodwill and Other Intangible Assets (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill and Other Intangible Assets [Roll Forward] | |
Amortizing Intangible Assets, Beginning Balance | $ 395 |
Amortizing Intangible Assets, Amortization expense | (22) |
Amortizing Intangible Assets, Ending Balance | 373 |
Goodwill, Beginning Balance | 1,696 |
Goodwill, Ending Balance | 1,696 |
Other Non-Amortizing Intangible Assets, Beginning Balance | 148 |
Other Non-Amortizing Intangible Assets, Ending Balance | $ 148 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets - Carrying Value and Accumulated Amortization for Each Major Class of Intangible Assets Other Than Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Gross Carrying Amount | $ 1,058 | $ 1,058 |
Accumulated Amortization | (685) | (663) |
Net Carrying Amount | 373 | 395 |
Non-amortizing intangible assets | 148 | 148 |
Intangible assets other than goodwill | 521 | 543 |
Gaming rights | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Non-amortizing intangible assets | 22 | 22 |
Trademarks [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Non-amortizing intangible assets | $ 126 | 126 |
Customer relationships [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 5 years 1 month | |
Gross Carrying Amount | $ 917 | 917 |
Accumulated Amortization | (606) | (589) |
Net Carrying Amount | $ 311 | 328 |
Contract rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 8 years 9 months | |
Gross Carrying Amount | $ 3 | 3 |
Accumulated Amortization | (1) | (1) |
Net Carrying Amount | $ 2 | 2 |
Developed technology rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 2 years | |
Gross Carrying Amount | $ 86 | 86 |
Accumulated Amortization | (53) | (49) |
Net Carrying Amount | $ 33 | 37 |
Gaming rights | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 8 years 1 month | |
Gross Carrying Amount | $ 52 | 52 |
Accumulated Amortization | (25) | (24) |
Net Carrying Amount | $ 27 | $ 28 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Financial Liabilities (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 52 | $ 71 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 3 | 4 |
US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 49 | 67 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 3 | 4 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 3 | 4 |
Fair Value, Inputs, Level 1 [Member] | US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 49 | 67 |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 49 | 67 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($)count | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 7 |
Caesars Entertainment Operating Company [Member] | Interest Rate Swap [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative, Number of Instruments Held | count | 8 |
Derivative, Notional Amount | $ 17 |
Contractual Commitments Contr46
Contractual Commitments Contractual Commitments (Details) $ in Millions | Mar. 31, 2016USD ($) |
Other Commitments [Line Items] | |
Deferred compensation liability | $ 43 |
Trust for Benefit of Employees [Member] | |
Other Commitments [Line Items] | |
Assets Held-in-trust | 64 |
Escrow for Benefit of Employees [Member] | |
Other Commitments [Line Items] | |
Assets Held-in-trust | 54 |
Caesars Entertainment Operating Company [Member] | |
Other Commitments [Line Items] | |
Other Deferred Compensation Arrangements, Liability, Classified, Noncurrent | 30 |
Other Insurance Product Line [Member] | |
Other Commitments [Line Items] | |
Self Insurance Reserve | 154 |
Health Insurance Product Line [Member] | |
Other Commitments [Line Items] | |
Self Insurance Reserve | $ 11 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 7,047 | ||
Long-term Debt | 6,920 | $ 6,964 | |
Current portion of long-term debt | (150) | (187) | |
Long Term Debt Non Current Face Value | 6,897 | ||
Long-term Debt, Excluding Current Maturities | 6,770 | 6,777 | |
Debt Instrument, Unamortized Discount | 127 | 132 | |
Long-term Debt, Fair Value | 6,273 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | (39) | (70) | |
Long-term Debt, Excluding Current Maturities | 2,265 | 2,267 | |
Caesars Entertainment Resort Properties [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 4,681 | ||
Long-term Debt | 4,617 | 4,627 | |
Current portion of long-term debt | (112) | (117) | |
Long Term Debt Non Current Face Value | 4,569 | ||
Long-term Debt, Excluding Current Maturities | $ 4,505 | 4,510 | |
Caesars Entertainment Resort Properties [Member] | Secured Debt [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1% floor. The rate is set at the 1% floor as of March 31, 2016. | ||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 7.00% | |
Long-term Debt, Gross | [2] | $ 2,444 | |
Long-term Debt | [2] | $ 2,399 | 2,403 |
Caesars Entertainment Resort Properties [Member] | Secured Debt [Member] | First Lien Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1] | 8.00% | |
Long-term Debt, Gross | $ 1,000 | ||
Long-term Debt | $ 992 | 992 | |
Caesars Entertainment Resort Properties [Member] | Secured Debt [Member] | Second Lien Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | [1] | 11.00% | |
Long-term Debt, Gross | $ 1,150 | ||
Long-term Debt | 1,139 | 1,138 | |
Caesars Entertainment Resort Properties [Member] | Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 12 | ||
Long-term Debt | $ 12 | 14 | |
Caesars Entertainment Resort Properties [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | Variable interest rate for amounts currently borrowed is determined by adding LIBOR to a base rate of 6.00%. | ||
Long-term Debt, Gross | [3] | $ 75 | |
Long-term Debt | [3] | 75 | 80 |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 2,366 | ||
Long-term Debt | 2,303 | 2,337 | |
Current portion of long-term debt | (38) | (70) | |
Long Term Debt Non Current Face Value | 2,328 | ||
Long-term Debt, Excluding Current Maturities | $ 2,265 | 2,267 | |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Secured Debt [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1% floor. The rate is set at the 1% floor as of March 31, 2016. | ||
Debt Instrument, Interest Rate, Stated Percentage | [4],[5] | 6.25% | |
Long-term Debt, Gross | [5] | $ 1,154 | |
Long-term Debt | [5] | $ 1,124 | 1,126 |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Secured Debt [Member] | CGPH Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | [4] | 9.38% | |
Long-term Debt, Gross | $ 675 | ||
Long-term Debt | $ 660 | 660 | |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Secured Debt [Member] | Horseshoe Baltimore Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1.25% floor. The rate is set at the 1.25% floor as of March 31, 2016. | ||
Debt Instrument, Interest Rate, Stated Percentage | [4],[6] | 8.25% | |
Long-term Debt, Gross | [6] | $ 299 | |
Long-term Debt | [6] | $ 288 | 288 |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Secured Debt [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | Variable interest rate calculated as LIBOR plus 5.25%. | ||
Long-term Debt, Gross | [7] | $ 15 | |
Long-term Debt | [7] | $ 15 | 45 |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Secured Debt [Member] | Horseshoe Baltimore FF&E Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | [4],[6] | 8.75% | |
Long-term Debt, Gross | [6] | $ 26 | |
Long-term Debt | [6] | $ 26 | 27 |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Secured Debt [Member] | Other Debt Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | [4] | 8.00% | |
Long-term Debt, Gross | $ 5 | ||
Long-term Debt | 4 | 4 | |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 3 | ||
Long-term Debt | $ 3 | 4 | |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Line of Credit [Member] | Horseshoe Baltimore Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | Variable interest rate calculated as LIBOR plus 7.00%. | ||
Long-term Debt, Gross | [8] | $ 0 | |
Long-term Debt | [8] | $ 0 | 0 |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Line of Credit [Member] | Cromwell Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | [4],[6] | 11.00% | |
Long-term Debt, Gross | [6] | $ 175 | |
Long-term Debt | [6] | $ 169 | 169 |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Unsecured Debt [Member] | Special Improvement District Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | [4] | 5.30% | |
Long-term Debt, Gross | $ 14 | ||
Long-term Debt | $ 14 | $ 14 | |
[1] | Interest rate is fixed, except where noted. | ||
[2] | Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1% floor. The rate is set at the 1% floor as of March 31, 2016. | ||
[3] | Variable interest rate for amounts currently borrowed is determined by adding LIBOR to a base rate of 6.00%. | ||
[4] | Interest rate is fixed, except where noted. | ||
[5] | Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1% floor. The rate is set at the 1% floor as of March 31, 2016. | ||
[6] | Variable interest rate calculated as a fixed rate plus the greater of LIBOR or a 1.25% floor. The rate is set at the 1.25% floor as of March 31, 2016. | ||
[7] | Variable interest rate calculated as LIBOR plus 5.25%. | ||
[8] | Variable interest rate calculated as LIBOR plus 7.00%. |
Debt - Annual Debt Service Requ
Debt - Annual Debt Service Requirement (Details) $ in Millions | Mar. 31, 2016USD ($) |
Other Commitments [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 48 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 137 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 50 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 226 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 3,650 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 2,936 |
Long-term debt, Maturities, Repayments of Principal, Total | 7,047 |
Contractual Obligation, Due in Next Fiscal Year | 538 |
Contractual Obligation, Due in Second Year | 697 |
Contractual Obligation, Due in Third Year | 610 |
Contractual Obligation, Due in Fourth Year | 786 |
Contractual Obligation, Due in Fifth Year | 4,200 |
Contractual Obligation, Due after Fifth Year | 3,216 |
Contractual Obligation | 10,047 |
Interest Expense [Member] | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | 490 |
Other Commitment, Due in Second Year | 560 |
Other Commitment, Due in Third Year | 560 |
Other Commitment, Due in Fourth Year | 560 |
Other Commitment, Due in Fifth Year | 550 |
Other Commitment, Due after Fifth Year | 280 |
Other Commitment | 3,000 |
Caesars Entertainment Resort Properties [Member] | |
Other Commitments [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 30 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 101 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 25 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 25 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 3,350 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 1,150 |
Long-term debt, Maturities, Repayments of Principal, Total | 4,681 |
Contractual Obligation, Due in Next Fiscal Year | 370 |
Contractual Obligation, Due in Second Year | 481 |
Contractual Obligation, Due in Third Year | 405 |
Contractual Obligation, Due in Fourth Year | 405 |
Contractual Obligation, Due in Fifth Year | 3,740 |
Contractual Obligation, Due after Fifth Year | 1,280 |
Contractual Obligation | 6,681 |
Caesars Entertainment Resort Properties [Member] | Interest Expense [Member] | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | 340 |
Other Commitment, Due in Second Year | 380 |
Other Commitment, Due in Third Year | 380 |
Other Commitment, Due in Fourth Year | 380 |
Other Commitment, Due in Fifth Year | 390 |
Other Commitment, Due after Fifth Year | 130 |
Other Commitment | 2,000 |
Caesars Growth Partners, LLC [Member] | |
Other Commitments [Line Items] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 18 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 36 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 25 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 201 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 300 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 1,786 |
Long-term debt, Maturities, Repayments of Principal, Total | 2,366 |
Contractual Obligation, Due in Next Fiscal Year | 168 |
Contractual Obligation, Due in Second Year | 216 |
Contractual Obligation, Due in Third Year | 205 |
Contractual Obligation, Due in Fourth Year | 381 |
Contractual Obligation, Due in Fifth Year | 460 |
Contractual Obligation, Due after Fifth Year | 1,936 |
Contractual Obligation | 3,366 |
Caesars Growth Partners, LLC [Member] | Interest Expense [Member] | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | 150 |
Other Commitment, Due in Second Year | 180 |
Other Commitment, Due in Third Year | 180 |
Other Commitment, Due in Fourth Year | 180 |
Other Commitment, Due in Fifth Year | 160 |
Other Commitment, Due after Fifth Year | 150 |
Other Commitment | $ 1,000 |
Debt - Credit Facilities (Detai
Debt - Credit Facilities (Details) - Maximum [Member] | Mar. 31, 2016 | |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Line of Credit [Member] | Horseshoe Baltimore Credit and FF&E Facilities [Member] | First Three Quarters [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio For Line Of Credit Facility | 7.50 | [1] |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Line of Credit [Member] | Horseshoe Baltimore Credit and FF&E Facilities [Member] | Following Four Quarters [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio For Line Of Credit Facility | 6 | [1] |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Line of Credit [Member] | Horseshoe Baltimore Credit and FF&E Facilities [Member] | Remainder of Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio For Line Of Credit Facility | 4.75 | [1] |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Line of Credit [Member] | Cromwell Credit Facility [Member] | First Three Quarters [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio For Line Of Credit Facility | 5.25 | |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Line of Credit [Member] | Cromwell Credit Facility [Member] | Following Four Quarters [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio For Line Of Credit Facility | 5 | |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Line of Credit [Member] | Cromwell Credit Facility [Member] | Remainder of Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio For Line Of Credit Facility | 4.75 | |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Secured Debt [Member] | Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio For Line Of Credit Facility | 6 | |
Caesars Entertainment Resort Properties [Member] | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio For Line Of Credit Facility | 8 | |
[1] | CBAC Borrower, LLC (“CBAC”) is a joint venture in which Caesars Baltimore Investment Company, LLC (“CBIC”) holds an interest. CBIC is a wholly owned subsidiary of CGP. |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Current portion of long-term debt | $ 150 | $ 187 | |
Long-term Debt | 6,920 | 6,964 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 39 | 70 | |
Caesars Entertainment Resort Properties [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 112 | 117 | |
Long-term Debt | 4,617 | 4,627 | |
Caesars Entertainment Resort Properties [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | [1] | 75 | 80 |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 38 | 70 | |
Long-term Debt | 2,303 | 2,337 | |
Caesars Growth Partners, LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Secured Debt [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | [2] | $ 15 | $ 45 |
[1] | Variable interest rate for amounts currently borrowed is determined by adding LIBOR to a base rate of 6.00%. | ||
[2] | Variable interest rate calculated as LIBOR plus 5.25%. |
Earnings Per Share Earnings P51
Earnings Per Share Earnings Per Share - Basic and Dilutive Net Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Income/(loss) from continuing operation, net of income taxes | $ (308) | $ 6,779 |
Loss from discontinued operation, net of income taxes | 0 | (7) |
Net income/(loss) attributable to Caesars | $ (308) | $ 6,772 |
Weighted-average common shares outstanding - basic | 145 | 145 |
Dilutive potential common shares: Stock options | 0 | 2 |
Weighted average common shares and dilutive potential common shares | 145 | 147 |
Basic income/(loss) per share from continuing operations | $ (2.12) | $ 46.86 |
Basic loss per share from discontinued operations | 0 | (0.05) |
Basic income/(loss) per share | (2.12) | 46.81 |
Diluted income/(loss) per share from continuing operations | (2.12) | 46.17 |
Diluted loss per share from discontinued operations | 0 | (0.05) |
Diluted income/(loss) per share | $ (2.12) | $ 46.12 |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Number of Anti-Dilutive Shares (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities [Line Items] | ||
Anti-dilutive potential common shares | 17 | 4 |
Stock options | ||
Antidilutive Securities [Line Items] | ||
Anti-dilutive potential common shares | 11 | 3 |
Restricted stock units and awards | ||
Antidilutive Securities [Line Items] | ||
Anti-dilutive potential common shares | 6 | 1 |
Casino Promotional Allowances53
Casino Promotional Allowances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Promotional Allowances | $ 140 | $ 157 |
Cost of Promotional Allowances | 67 | 80 |
Food and Beverage | ||
Promotional Allowances | 73 | 84 |
Cost of Promotional Allowances | 44 | 52 |
Rooms | ||
Promotional Allowances | 60 | 64 |
Cost of Promotional Allowances | 20 | 23 |
Other | ||
Promotional Allowances | 7 | 9 |
Cost of Promotional Allowances | $ 3 | $ 5 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Composition of Stock-Based Compensation (Detail) - Total Caesars Stockholders’ Equity/(Deficit) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 10 | $ 15 |
Corporate expense | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 8 | 14 |
Property, general, administrative, and other | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 2 | $ 1 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation - Options and Restricted Stock Units Granted and Outstanding (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Caesars Interactive Entertainment [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 20,899 | 21,057 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 9,805.35 | $ 9,584.64 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 263 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 17,370 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 4,418 | 4,539 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 7,803.53 | $ 7,827.24 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 58 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 15,740 | |
Total Caesars Stockholders’ Equity/(Deficit) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 10,424,431 | 10,638,219 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 11.75 | $ 12.90 |
Restricted stock units and awards | Total Caesars Stockholders’ Equity/(Deficit) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 10,127,034 | 6,329,435 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 9.32 | $ 12.06 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 5,052,202 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 6.27 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - Caesars Interactive Entertainment [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 28 | $ 13 | |
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | $ 124 | $ 107 |
Income Taxes - Allocation of To
Income Taxes - Allocation of Total Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Benefit/(Loss) Applicable To: [Abstract] | ||
Income/(loss) from continuing operations, before income taxes | $ (234) | $ 6,996 |
Income tax provision | $ (40) | $ (192) |
Effective tax rate | (17.10%) | 2.70% |
Segment Reporting Segment Rep58
Segment Reporting Segment Reporting Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Segment Reporting Information [Line Items] | ||||
Other revenue | $ 115 | $ 126 | ||
Net revenues | 1,168 | 1,253 | ||
Depreciation and amortization | 119 | 102 | ||
Income/(loss) from operations | 154 | 144 | ||
Interest expense | 151 | 238 | ||
Deconsolidation and restructuring of CEOC and other | (237) | 7,090 | ||
Income tax benefit/(provision) | (40) | (192) | ||
Caesars Interactive Entertainment [Member] | International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 188 | 141 | ||
Operating Segments [Member] | Caesars Entertainment Operating Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other revenue | 24 | |||
Net revenues | 164 | |||
Depreciation and amortization | 11 | |||
Income/(loss) from operations | 9 | |||
Interest expense | 87 | |||
Deconsolidation and restructuring of CEOC and other | 0 | |||
Income tax benefit/(provision) | 0 | |||
Operating Segments [Member] | Caesars Entertainment Resort Properties [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other revenue | 73 | 71 | ||
Net revenues | 528 | 528 | ||
Depreciation and amortization | 73 | 49 | ||
Income/(loss) from operations | 78 | 106 | ||
Interest expense | 99 | 101 | ||
Deconsolidation and restructuring of CEOC and other | (1) | 0 | ||
Income tax benefit/(provision) | 6 | (2) | ||
Operating Segments [Member] | Caesars Growth Partners Casinos [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other revenue | 46 | 37 | ||
Net revenues | 416 | 390 | ||
Depreciation and amortization | 39 | 34 | ||
Income/(loss) from operations | 63 | 164 | ||
Interest expense | 51 | 46 | ||
Deconsolidation and restructuring of CEOC and other | 1 | (2) | ||
Income tax benefit/(provision) | 0 | 0 | ||
Operating Segments [Member] | Caesars Interactive Entertainment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other revenue | 0 | [1] | 0 | [2] |
Net revenues | 228 | [1] | 177 | [2] |
Depreciation and amortization | 7 | [1] | 7 | [2] |
Income/(loss) from operations | 54 | [1] | 41 | [2] |
Interest expense | 1 | [1] | 2 | [2] |
Deconsolidation and restructuring of CEOC and other | 0 | [1] | 0 | [2] |
Income tax benefit/(provision) | (32) | [1] | (13) | [2] |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other revenue | 1 | 4 | ||
Net revenues | 1 | 8 | ||
Depreciation and amortization | 0 | 1 | ||
Income/(loss) from operations | (41) | (176) | ||
Interest expense | 1 | 2 | ||
Deconsolidation and restructuring of CEOC and other | (236) | 7,092 | ||
Income tax benefit/(provision) | (14) | (177) | ||
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other revenue | (5) | (10) | ||
Net revenues | (5) | (14) | ||
Depreciation and amortization | 0 | 0 | ||
Income/(loss) from operations | 0 | 0 | ||
Interest expense | (1) | 0 | ||
Deconsolidation and restructuring of CEOC and other | (1) | 0 | ||
Income tax benefit/(provision) | $ 0 | $ 0 | ||
[1] | Includes foreign net revenues of $188 million. | |||
[2] | Includes foreign net revenues of $141 million. |
Segment Reporting Segment Rep59
Segment Reporting Segment Reporting Property EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Segment Reporting Information [Line Items] | ||||
Net income/(loss) attributable to company | $ (308) | $ 6,772 | ||
Net income/(loss) attributable to noncontrolling interests | 34 | 25 | ||
Loss from discontinued operations, net of income taxes | 7 | |||
Income tax (benefit)/provision | 40 | 192 | ||
Deconsolidation and restructuring of CEOC and other | 237 | (7,090) | ||
Interest expense | 151 | 238 | ||
Depreciation and amortization | 119 | 102 | ||
Corporate expense | 41 | 47 | ||
Other operating costs | 22 | 48 | ||
Property EBITDA | 336 | 341 | ||
Operating Segments [Member] | Caesars Entertainment Operating Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income/(loss) attributable to company | (85) | |||
Net income/(loss) attributable to noncontrolling interests | 0 | |||
Loss from discontinued operations, net of income taxes | 7 | |||
Income tax (benefit)/provision | 0 | |||
Deconsolidation and restructuring of CEOC and other | 0 | |||
Interest expense | 87 | |||
Depreciation and amortization | 11 | |||
Corporate expense | 7 | |||
Other operating costs | 4 | |||
Property EBITDA | 31 | |||
Operating Segments [Member] | Caesars Entertainment Resort Properties [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income/(loss) attributable to company | (16) | 3 | ||
Net income/(loss) attributable to noncontrolling interests | 0 | 0 | ||
Loss from discontinued operations, net of income taxes | 0 | |||
Income tax (benefit)/provision | (6) | 2 | ||
Deconsolidation and restructuring of CEOC and other | 1 | 0 | ||
Interest expense | 99 | 101 | ||
Depreciation and amortization | 73 | 49 | ||
Corporate expense | 11 | 12 | ||
Other operating costs | 2 | 2 | ||
Property EBITDA | 164 | 169 | ||
Operating Segments [Member] | Caesars Growth Partners Casinos [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income/(loss) attributable to company | 13 | 121 | ||
Net income/(loss) attributable to noncontrolling interests | 0 | (5) | ||
Loss from discontinued operations, net of income taxes | 0 | |||
Income tax (benefit)/provision | 0 | 0 | ||
Deconsolidation and restructuring of CEOC and other | (1) | 2 | ||
Interest expense | 51 | 46 | ||
Depreciation and amortization | 39 | 34 | ||
Corporate expense | 7 | 7 | ||
Other operating costs | 1 | (114) | ||
Property EBITDA | 110 | 91 | ||
Operating Segments [Member] | Caesars Interactive Entertainment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income/(loss) attributable to company | 17 | 21 | ||
Net income/(loss) attributable to noncontrolling interests | 4 | 5 | ||
Loss from discontinued operations, net of income taxes | 0 | |||
Income tax (benefit)/provision | 32 | [1] | 13 | [2] |
Deconsolidation and restructuring of CEOC and other | 0 | [1] | 0 | [2] |
Interest expense | 1 | [1] | 2 | [2] |
Depreciation and amortization | 7 | [1] | 7 | [2] |
Corporate expense | 0 | 0 | ||
Other operating costs | 0 | 0 | ||
Property EBITDA | 61 | 48 | ||
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income/(loss) attributable to company | (322) | 6,712 | ||
Net income/(loss) attributable to noncontrolling interests | 30 | 25 | ||
Loss from discontinued operations, net of income taxes | 0 | |||
Income tax (benefit)/provision | 14 | 177 | ||
Deconsolidation and restructuring of CEOC and other | 236 | (7,092) | ||
Interest expense | 1 | 2 | ||
Depreciation and amortization | 0 | 1 | ||
Corporate expense | 24 | 21 | ||
Other operating costs | 19 | 157 | ||
Property EBITDA | 2 | 3 | ||
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income/(loss) attributable to company | 0 | 0 | ||
Net income/(loss) attributable to noncontrolling interests | 0 | 0 | ||
Loss from discontinued operations, net of income taxes | 0 | |||
Income tax (benefit)/provision | 0 | 0 | ||
Deconsolidation and restructuring of CEOC and other | 1 | 0 | ||
Interest expense | (1) | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Corporate expense | (1) | 0 | ||
Other operating costs | 0 | (1) | ||
Property EBITDA | $ (1) | $ (1) | ||
[1] | Includes foreign net revenues of $188 million. | |||
[2] | Includes foreign net revenues of $141 million. |
Segment Reporting Segment Rep60
Segment Reporting Segment Reporting Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | $ 12,140 | $ 12,195 | ||
Total liabilities | 10,194 | 9,962 | ||
Caesars Interactive Entertainment [Member] | International [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 276 | 281 | ||
Total liabilities | 58 | 57 | ||
Operating Segments [Member] | Caesars Entertainment Resort Properties [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 7,062 | 7,028 | ||
Total liabilities | 6,105 | 6,073 | ||
Operating Segments [Member] | Caesars Growth Partners Casinos [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 4,170 | 4,174 | ||
Total liabilities | 2,571 | 2,583 | ||
Operating Segments [Member] | Caesars Interactive Entertainment [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 472 | [1] | 485 | [2] |
Total liabilities | 252 | [1] | 269 | [2] |
Corporate, Non-Segment [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 1,320 | 1,409 | ||
Total liabilities | 1,355 | 1,155 | ||
Intersegment Eliminations [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | (884) | (901) | ||
Total liabilities | $ (89) | $ (118) | ||
[1] | Includes foreign assets of $276 million and foreign liabilities of $58 million. | |||
[2] | Includes foreign assets of $281 million and foreign liabilities of $57 million. |
Segment Reporting Segment Rep61
Segment Reporting Segment Reporting Additional (Details) - 3 months ended Mar. 31, 2016 | business_segments | segment |
Segment Reporting [Abstract] | ||
Number of Reportable Segments | 3 | 3 |
Related Party Transactions Re62
Related Party Transactions Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Affiliated Entity [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1 | $ 2 |
Affiliated Entity [Member] | Caesars Acquisition Company [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | 6 | 10 |
Majority Shareholder [Member] | Reimbursement to Counterparty [Member] | Hamlet Holdings LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | 6 | 2 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Caesars Entertainment Operating Company [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | 7 | 3 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Shared Services Allocation to Related Party [Member] | Caesars Entertainment Operating Company [Member] | ||
Related Party Transaction [Line Items] | ||
Shared services allocated expenses to CEOC | 91 | 75 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Shared Services Allocation from Related Party [Member] | Caesars Entertainment Operating Company [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | 25 | 15 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Management Fees [Member] | Caesars Entertainment Operating Company [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | 10 | 9 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Lease Agreements [Member] | Caesars Entertainment Operating Company [Member] | ||
Related Party Transaction [Line Items] | ||
Octavius Tower lease revenue | $ 9 | $ 7 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Due from affiliates | $ 34 | $ 32 |
Due to affiliates | 16 | $ 16 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Caesars Entertainment Operating Company [Member] | Lease Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
Operating Leases, Future Minimum Payments Receivable | 35 | |
Operating Leases, Future Minimum Payments Due | $ 2 | |
Majority-Owned Subsidiary, Unconsolidated [Member] | Caesars Entertainment Resort Properties [Member] | Caesars Entertainment Operating Company [Member] | Shared Services Allocation to CES Members [Member] | ||
Related Party Transaction [Line Items] | ||
Corporate Expense Allocation | 21.80% | |
Majority-Owned Subsidiary, Unconsolidated [Member] | Caesars Growth Properties Holdings, LLC [Member] | Caesars Entertainment Operating Company [Member] | Shared Services Allocation to CES Members [Member] | ||
Related Party Transaction [Line Items] | ||
Corporate Expense Allocation | 12.80% | |
Majority-Owned Subsidiary, Unconsolidated [Member] | Caesars Interactive Entertainment [Member] | Caesars Entertainment Operating Company [Member] | Cross Marketing and Trademark License Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Rate | 3.00% |