CZR filing — read by section

Item 8. Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 
 
 
 
 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS OF 
 CAESARS ENTERTAINMENT, INC. 
 
 Page 
 Report of Independent Registered Public Accounting Firm 
 60 
 
 Consolidated Balance Sheets 
 62 
 
 Consolidated Statements of Operations 
 63 
 
 Consolidated Statements of Comprehensive Income (Loss) 
 64 
 
 Consolidated Statements of Stockholders’ Equity 
 65 
 
 Consolidated Statements of Cash Flows 
 66 
 
 Notes to Consolidated Financial Statements 
 68 
 

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 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 
 To the stockholders and the Board of Directors of Caesars Entertainment, Inc. 
 Opinion on the Financial Statements 
 We have audited the accompanying consolidated balance sheets of Caesars Entertainment, Inc. and subsidiaries (the “Company”) as of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flow for each of the three years in the period ended December 31, 2022, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America. 
 We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 21, 2023, expressed an unqualified opinion on the Company’s internal control over financial reporting. 
 Basis for Opinion 
 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. 
 Critical Audit Matter 
 The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating a critical audit matter, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 
 Goodwill and Indefinite-lived Intangible Assets – Refer to Note 7 to the Financial Statements 
 Critical Audit Matter Description 
 The Company reviews goodwill and indefinite-lived intangible assets for impairment at least annually and between annual test dates in certain circumstances. The Company performs its impairment test by comparing the fair value of each reporting unit with the carrying amount. The Company determines the estimated fair value of each reporting unit based on a combination of earnings before interest, taxes, depreciation and amortization (“EBITDA”), valuation multiples, and estimated future cash flows discounted at rates commensurate with the capital structure and cost of capital of comparable market participants, giving appropriate consideration to the prevailing borrowing rates within the casino industry in general. The Company also evaluates the aggregate fair value of all the reporting units and other non-operating assets in comparison to its aggregate debt and equity market capitalization at the test date. 
 Indefinite-lived intangible assets consist primarily of trademarks, expenditures associated with obtaining racing and gaming licenses, and Caesars Rewards. The Company uses the Excess Earnings Method and Cost Approach to determine the estimated fair value of gaming rights and uses the relief from royalty method to determine the estimated fair value of trademarks and Caesars Rewards. 
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 The Company performed its annual impairment assessment as of October 1, 2022. The Company’s goodwill balance was $11,004 million as of December 31, 2022, of which $625 million and $1.1 billion was related to one reporting unit in the Las Vegas segment and four reporting units in the Regional segment, respectively, which had estimated fair values that did not significantly exceed their respective carrying values. 
 The Company’s indefinite-lived intangibles balance was $3,654 million as of December 31, 2022, of which trademarks totaling $286 million and $180 million in the Las Vegas and Caesars Digital segments, respectively, and gaming rights totaling $173 million in the Regional segment, had estimated fair values that do not significantly exceed their respective carrying values. 
 The determination of fair value of its reporting units and indefinite-lived intangible assets requires management to make significant assumptions and estimates around forecasts and the selection of discount rates. Therefore, our audit procedures to evaluate the reasonableness of management’s forecasts required a higher degree of auditor judgment as well as an increased level of audit effort and the need to use more experienced audit professionals. In addition, the selection of discount rates involved a higher degree of auditor judgment and subjectivity as well as an increased level of audit effort, including the involvement of valuation specialists. 
 How the Critical Audit Matter Was Addressed in the Audit 
 Our audit procedures related to management’s forecasts and the selection of discount rates used by management to determine the fair value of the Company’s reporting units and indefinite-lived intangible assets included the following, among others: 
 • We tested the effectiveness of the Company’s internal controls over the forecasts and the selection of discount rates. 
 • We evaluated management’s ability t o accurately forecast by comparing actual results to management’s historical forecasts. 
 • We evaluated the assumptions and estimates included in management’s forecasts by: 1) comparing the forecasts to information included in the Company’s communications to the Board of Directors, gaming industry reports, and analyst reports for the Company and certain of its peer companies; 2) conducting inquiries with property management; 3) considering the impact of changes in the competitive and regulatory environment on management’s projections; 4) assessing the reasonableness of strategic plans incorporated by management into the projections and 5) evaluating management’s estimate of the impact of any related expansion of gaming activities by analyzing historical information. 
 • With the assistance of our valuation specialists, we evaluated the discount rates selected by management, including assessing the impact of the uncertainty in the forecasts on the discount rates, testing the market-based source information underlying the selection of the discount rates and the mathematical accuracy of the discount rate calculations, and developing a range of independent estimates and comparing those to the discount rates selected by management. 
 
 
 /s/ DELOITTE & TOUCHE LLP 
 Las Vegas, Nevada 
 February 21, 2023 
 We have served as the Company’s auditor since 2020. 
 
 
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 CAESARS ENTERTAINMENT, INC. 
 CONSOLIDATED BALANCE SHEETS 
 
 (Dollars in millions, except par value) December 31,
2022 December 31,
2021 
 ASSETS 
 CURRENT ASSETS: 
 Cash and cash equivalents $ 1,038 $ 1,070 
 Restricted cash 131 319 
 Accounts receivable, net 611 472 
 
 Inventories 59 42 
 Prepayments and other current assets 263 290 
 Assets held for sale — 3,771 
 Total current assets 2,102 5,964 
 Investments in and advances to unconsolidated affiliates 94 158 
 Property and equipment, net 14,598 14,601 
 Gaming rights and other intangibles, net 4,714 4,920 
 Goodwill 11,004 11,076 
 Other assets, net 1,015 1,312 
 
 Total assets $ 33,527 $ 38,031 
 LIABILITIES AND STOCKHOLDERS’ EQUITY 
 CURRENT LIABILITIES: 
 Accounts payable $ 314 $ 254 
 Accrued interest 318 320 
 Accrued other liabilities 1,928 1,973 
 Current portion of long-term debt 108 70 
 Liabilities related to assets held for sale — 2,680 
 Total current liabilities 2,668 5,297 
 Long-term financing obligation 12,610 12,424 
 Long-term debt 12,659 13,722 
 Deferred income taxes 987 1,111 
 Other long-term liabilities 852 936 
 Total liabilities 29,776 33,490 
 Commitments and contingencies (Note 11) 
 
 STOCKHOLDERS' EQUITY: 
 Preferred stock, $ 0.00001 par value, 150,000,000 shares authorized, no shares issued and outstanding 
 — — 
 Common stock, $ 0.00001 par value, 500,000,000 shares authorized, 214,671,754 and 213,779,848 issued and outstanding, net of treasury shares 
 — — 
 Paid-in capital 6,953 6,877 
 Accumulated deficit ( 3,309 ) ( 2,410 ) 
 Treasury stock at cost, 363,016 and 363,016 shares held 
 ( 23 ) ( 23 ) 
 Accumulated other comprehensive income 92 36 
 Caesars stockholders' equity 3,713 4,480 
 Noncontrolling interests 38 61 
 Total stockholders’ equity 3,751 4,541 
 Total liabilities and stockholders’ equity $ 33,527 $ 38,031 

 
 
 The accompanying notes are an integral part of these consolidated financial statements. 
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 CAESARS ENTERTAINMENT, INC. 
 CONSOLIDATED STATEMENTS OF OPERATIONS 
 
 Years Ended December 31, 
 (In millions, except per share data) 
 2022 2021 2020 
 REVENUES: 
 Casino $ 5,997 $ 5,827 $ 2,482 
 Food and beverage 1,596 1,140 342 
 Hotel 1,957 1,551 450 
 Other 1,271 1,052 354 
 Net revenues 10,821 9,570 3,628 
 EXPENSES: 
 Casino 3,526 3,129 1,271 
 Food and beverage 935 707 265 
 Hotel 529 438 170 
 Other 411 373 140 
 General and administrative 2,068 1,782 902 
 Corporate 286 309 195 
 Impairment charges 108 102 215 
 Depreciation and amortization 1,205 1,126 583 
 Transaction and other costs 14 144 270 
 Total operating expenses 9,082 8,110 4,011 
 
 
 
 Operating income (loss) 1,739 1,460 ( 383 ) 
 OTHER EXPENSE: 
 Interest expense, net ( 2,265 ) ( 2,295 ) ( 1,202 ) 
 Loss on extinguishment of debt ( 85 ) ( 236 ) ( 197 ) 
 Other income (loss) 46 ( 198 ) 176 
 Total other expense ( 2,304 ) ( 2,729 ) ( 1,223 ) 
 Loss from continuing operations before income taxes ( 565 ) ( 1,269 ) ( 1,606 ) 
 Benefit (provision) for income taxes 41 283 ( 132 ) 
 Loss from continuing operations, net of income taxes ( 524 ) ( 986 ) ( 1,738 ) 
 Discontinued operations, net of income taxes ( 386 ) ( 30 ) ( 20 ) 
 Net loss ( 910 ) ( 1,016 ) ( 1,758 ) 
 Net (income) loss attributable to noncontrolling interests 11 ( 3 ) 1 
 Net loss attributable to Caesars $ ( 899 ) $ ( 1,019 ) $ ( 1,757 ) 
 Net loss per share - basic and diluted: 
 Basic loss per share from continuing operations $ ( 2.39 ) $ ( 4.69 ) $ ( 13.35 ) 
 Basic loss per share from discontinued operations ( 1.80 ) ( 0.14 ) ( 0.15 ) 
 Basic loss per share $ ( 4.19 ) $ ( 4.83 ) $ ( 13.50 ) 
 Diluted loss per share from continuing operations $ ( 2.39 ) $ ( 4.69 ) $ ( 13.35 ) 
 Diluted loss per share from discontinued operations ( 1.80 ) ( 0.14 ) ( 0.15 ) 
 Diluted loss per share $ ( 4.19 ) $ ( 4.83 ) $ ( 13.50 ) 
 Weighted average basic shares outstanding 214 211 130 
 Weighted average diluted shares outstanding 214 211 130 

 
 
 The accompanying notes are an integral part of these consolidated financial statements. 
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 CAESARS ENTERTAINMENT, INC. 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 
 
 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 Net loss $ ( 910 ) $ ( 1,016 ) $ ( 1,758 ) 
 Foreign currency translation adjustments 34 ( 45 ) 9 
 Change in fair market value of interest rate swaps, net of tax 21 47 26 
 Other — ( 1 ) — 
 Other comprehensive income, net of tax 55 1 35 
 Comprehensive loss ( 855 ) ( 1,015 ) ( 1,723 ) 
 Amounts attributable to noncontrolling interests: 
 Net (income) loss attributable to noncontrolling interests 11 ( 3 ) 1 
 Foreign currency translation adjustments 1 1 ( 1 ) 
 Comprehensive (income) loss attributable to noncontrolling interests 12 ( 2 ) — 
 Comprehensive loss attributable to Caesars $ ( 843 ) $ ( 1,017 ) $ ( 1,723 ) 

 
 
 The accompanying notes are an integral part of these consolidated financial statements. 
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 CAESARS ENTERTAINMENT, INC. 
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 
 
 Caesars Stockholders' Equity 
 Preferred Stock Common Stock Treasury Stock 
 (In millions) Shares Amount Shares Amount Paid-in Capital Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive Income Amount Noncontrolling interests Total Stockholders' Equity 
 Balance, January 1, 2020 — $ — 78 $ — $ 760 $ 366 $ — $ ( 9 ) $ — $ 1,117 
 Stock-based compensation — — 1 — 72 — — — — 72 
 Issuance of common stock, net — — 67 — 3,172 — — — — 3,172 
 Net loss — — — — — ( 1,757 ) — — ( 1 ) ( 1,758 ) 
 Shares issued to Former Caesars shareholders — — 62 — 2,381 — — — — 2,381 
 Former Caesars replacement awards — — — — 24 — — — — 24 
 Other comprehensive income, net of tax — — — — — — 34 — 1 35 
 Shares withheld related to net share settlement of stock awards — — — — ( 16 ) — — — — ( 16 ) 
 Acquired noncontrolling interests — — — — ( 18 ) — — — 18 — 
 Other — — — — 7 — — — — 7 
 Balance, December 31, 2020 — — 208 — 6,382 ( 1,391 ) 34 ( 9 ) 18 5,034 
 Stock-based compensation — — 1 — 83 — — — — 83 
 Issuance of common stock, net — — 5 — 456 — — ( 14 ) — 442 
 Net income (loss) — — — — — ( 1,019 ) — — 3 ( 1,016 ) 
 Other comprehensive income, net of tax — — — — — — 2 — ( 1 ) 1 
 Shares withheld related to net share settlement of stock awards — — — — ( 44 ) — — — — ( 44 ) 
 Transactions with noncontrolling interests — — — — — — — — 41 41 
 Balance, December 31, 2021 — — 214 — 6,877 ( 2,410 ) 36 ( 23 ) 61 4,541 
 Stock-based compensation — — 1 — 102 — — — — 102 
 
 Net loss — — — — — ( 899 ) — — ( 11 ) ( 910 ) 
 Other comprehensive income, net of tax — — — — — — 56 — ( 1 ) 55 
 Shares withheld related to net share settlement of stock awards — — — — ( 26 ) — — — — ( 26 ) 
 Transactions with noncontrolling interests — — — — — — — — ( 11 ) ( 11 ) 
 Balance, December 31, 2022 — — 215 $ — $ 6,953 $ ( 3,309 ) $ 92 $ ( 23 ) $ 38 $ 3,751 

 
 
 The accompanying notes are an integral part of these consolidated financial statements. 
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 CAESARS ENTERTAINMENT, INC. 
 CONSOLIDATED STATEMENTS OF CASH FLOWS 
 
 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 CASH FLOWS FROM OPERATING ACTIVITIES: 
 Net loss $ ( 910 ) $ ( 1,016 ) $ ( 1,758 ) 
 Adjustments to reconcile net loss to net cash provided by operating activities: 
 Loss from discontinued operations 386 30 20 
 Depreciation and amortization 1,205 1,126 583 
 Amortization of deferred financing costs and discounts 297 347 156 
 Provision for doubtful accounts 25 26 29 
 Deferred revenue ( 2 ) ( 4 ) ( 11 ) 
 
 Loss on extinguishment of debt 85 236 197 
 Non-cash lease amortization 54 39 14 
 (Gain) loss on investments 54 107 ( 34 ) 
 Stock compensation expense 101 82 79 
 (Gain) loss on sale of businesses and disposal of property and equipment 5 11 ( 7 ) 
 Impairment charges 108 102 215 
 (Benefit) provision for deferred income taxes ( 41 ) ( 283 ) 176 
 (Gain) loss on derivatives ( 73 ) 127 ( 9 ) 
 Foreign currency transaction gain — ( 21 ) ( 129 ) 
 Other non-cash adjustments to net loss ( 57 ) ( 8 ) ( 2 ) 
 Change in operating assets and liabilities: 
 Accounts receivable ( 143 ) ( 135 ) ( 70 ) 
 Prepaid expenses and other assets ( 15 ) ( 67 ) 9 
 Income taxes (receivable) payable ( 7 ) 13 ( 40 ) 
 Accounts payable, accrued expenses and other liabilities ( 80 ) 486 25 
 Other 1 1 ( 4 ) 
 Net cash provided by (used in) operating activities 993 1,199 ( 561 ) 
 
 CASH FLOWS FROM INVESTING ACTIVITIES: 
 Purchase of property and equipment, net ( 952 ) ( 520 ) ( 164 ) 
 Former Caesars acquisition, net of cash acquired — — ( 6,314 ) 
 Acquisition of William Hill, net of cash acquired — ( 1,581 ) — 
 Purchase of additional interest in Horseshoe Baltimore, net of cash consolidated — ( 5 ) — 
 Acquisition of gaming rights and trademarks ( 11 ) ( 312 ) ( 35 ) 
 
 Proceeds from sale of businesses, property and equipment, net of cash sold 39 726 366 
 Proceeds from the sale of investments 126 239 25 
 
 Proceeds from insurance related to property damage 36 44 17 
 Investments in unconsolidated affiliates — ( 39 ) ( 1 ) 
 Other ( 6 ) — 6 
 Net cash used in investing activities ( 768 ) ( 1,448 ) ( 6,100 ) 
 
 CASH FLOWS FROM FINANCING ACTIVITIES: 
 Proceeds from long-term debt and revolving credit facilities 1,500 1,308 9,765 
 Repayments of long-term debt and revolving credit facilities ( 2,738 ) ( 1,977 ) ( 3,742 ) 
 Proceeds from sale-leaseback financing arrangement — — 3,224 
 Financing obligation payments ( 3 ) ( 5 ) ( 49 ) 
 Debt issuance and extinguishment costs ( 12 ) ( 56 ) ( 356 ) 
 Proceeds from issuance of common stock 1 3 2,718 
 Cash paid to settle convertible notes — ( 367 ) ( 903 ) 
 Taxes paid related to net share settlement of equity awards ( 27 ) ( 45 ) ( 16 ) 
 
 Distributions to noncontrolling interest ( 3 ) ( 2 ) — 
 Net cash provided by (used in) financing activities ( 1,282 ) ( 1,141 ) 10,641 

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 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 CASH FLOWS FROM DISCONTINUED OPERATIONS: 
 Cash flows from operating activities ( 18 ) ( 27 ) ( 21 ) 
 Cash flows from investing activities 386 ( 1,475 ) ( 5 ) 
 Cash flows from financing activities — 591 — 
 Net cash from discontinued operations 368 ( 911 ) ( 26 ) 
 Change in cash, cash equivalents, and restricted cash classified as assets held for sale — 10 ( 20 ) 
 Effect of foreign currency exchange rates on cash ( 29 ) 32 129 
 Increase (decrease) in cash, cash equivalents and restricted cash ( 718 ) ( 2,259 ) 4,063 
 Cash, cash equivalents and restricted cash, beginning of period 2,021 4,280 217 
 Cash, cash equivalents and restricted cash, end of period $ 1,303 $ 2,021 $ 4,280 
 
 RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO AMOUNTS REPORTED WITHIN THE CONSOLIDATED BALANCE SHEETS: 
 Cash and cash equivalents $ 1,038 $ 1,070 $ 1,776 
 Restricted cash 131 319 2,021 
 Restricted and escrow cash included in other noncurrent assets 134 323 437 
 Cash and cash equivalents and restricted cash in discontinued operations — 309 46 
 Total cash, cash equivalents and restricted cash $ 1,303 $ 2,021 $ 4,280 
 
 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: 
 Interest paid $ 2,010 $ 1,923 $ 892 
 Income taxes (refunded) paid, net 22 9 ( 7 ) 
 NON-CASH INVESTING AND FINANCING ACTIVITIES: 
 Payables for capital expenditures 145 100 40 
 Exchange for sale-leaseback financing obligation 
 — — 246 
 Convertible notes settled with shares — 440 454 
 Land contributed to joint venture — 61 — 
 Shares issued to Former Caesars shareholders — — 2,381 

 
 
 The accompanying notes are an integral part of these consolidated financial statements. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
 
 The accompanying consolidated financial statements include the accounts of Caesars Entertainment, Inc., a Delaware corporation, and its consolidated subsidiaries which may be referred to as the “Company,” “CEI,” “Caesars,” “we,” “our,” “us,” or the “Registrant” within these financial statements. 
 We also refer to (i) our Consolidated Financial Statements as our “Financial Statements,” (ii) our Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) as our “Statements of Operations,” (iii) our Consolidated Balance Sheets as our “Balance Sheets,” and (iv) our Consolidated Statements of Cash Flows as our “Statements of Cash Flows,” which are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). References to numbered “Notes” refer to Notes to our Consolidated Financial Statements included herein. 
 Note 1. Organization and Basis of Presentation 
 Organization 
 The Company is a geographically diversified gaming and hospitality company that was founded in 1973 by the Carano family with the opening of the Eldorado Hotel Casino in Reno, Nevada. Beginning in 2005, the Company grew through a series of acquisitions, including the acquisition of MTR Gaming Group, Inc. in 2014, Isle of Capri Casinos, Inc. in 2017, Tropicana Entertainment, Inc. in 2018 and a merger with Caesars Entertainment Corporation (“Former Caesars”) on July 20, 2020, pursuant to which Former Caesars became a wholly-owned subsidiary of the Company (the “Merger”) and the Company changed the Company’s ticker symbol on the NASDAQ Stock Market from “ERI” to “CZR”. 
 On April 22, 2021, the Company completed the acquisition of William Hill PLC (the “William Hill Acquisition”). See below for further discussion of the William Hill Acquisition. 
 The Company owns, leases, brands or manages an aggregate of 51 domestic properties in 16 states with approximately 52,800 slot machines, video lottery terminals and e-tables, approximately 2,800 table games and approximately 47,200 hotel rooms as of December 31, 2022. The Company operates and conducts sports wagering across 28 jurisdictions in North America, 20 of which are mobile for sports betting, and operates regulated online real money gaming businesses in six jurisdictions in North America. In addition, we have other domestic and international properties that are authorized to use the brands and marks of Caesars Entertainment, Inc., as well as other non-gaming properties. The Company’s primary source of revenue is generated by our casino properties’ gaming operations, including retail and online sports betting, as well as online gaming, and the Company utilizes its hotels, restaurants, bars, entertainment, racing, retail shops and other services to attract customers to its properties. 
 The Company’s operations for retail and mobile sports betting, online casino, and online poker are included under the Caesars Digital segment. The Company has made significant investments into the interactive business in recent years with the completion of the Merger, the William Hill Acquisition, and strategic expansion into new markets as legalization permits. The Company utilized significant marketing campaigns with distinguished actors, athletes and media personalities promoting the launch of the Caesars Sportsbook app. The app offers numerous pre-match and live markets, extensive odds and flexible limits, player props, and same-game parlays. Caesars Sportsbook has partnerships with the NFL, NBA, NHL and MLB while being the exclusive odds provider for ESPN and CBS Sports. The Company has continued to create new partnerships among professional sports teams and, in 2021, entered into a 20 -year exclusive naming-rights partnership branding the Caesars Superdome in New Orleans. The Company expects to continue to expand its operations in the Caesars Digital segment as new jurisdictions legalize retail and online gaming and sports betting. 
 The Company has divested certain properties and other assets, including non-core properties and divestitures required by regulatory agencies. See Note 4 for a discussion of properties recently sold and Note 19 for segment information. 
 William Hill Acquisition 
 On September 30, 2020, the Company announced that it had reached an agreement with William Hill PLC on the terms of a recommended cash acquisition pursuant to which the Company would acquire the entire issued and to be issued share capital (other than shares owned by the Company or held in treasury) of William Hill PLC, in an all-cash transaction. On the acquisition date, the Company’s intent was to divest William Hill PLC’s non-U.S. operations, including the United Kingdom and international online divisions and the retail betting shops (collectively, “William Hill International”), all of which were held for sale as of the date of the closing of the William Hill Acquisition with such operations reflected within discontinued operations. On April 22, 2021, the Company completed the acquisition of William Hill PLC for £ 2.9 billion, or approximately $ 3.9 billion . See Note 3. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 On September 8, 2021, the Company entered into an agreement to sell William Hill International to 888 Holdings Plc for approximately £ 2.2 billion. On April 7, 2022, the Company amended the agreement to sell William Hill International to 888 Holdings Plc for a revised enterprise value of approximately £ 2.0 billion. The amended agreement reflected a £ 250 million reduction in consideration payable at closing and up to £ 100 million in deferred consideration to be paid to the Company, subject to 888 Holdings Plc meeting certain 2023 financial targets. During the year ended December 31, 2022, the Company recorded impairments to assets held for sale of $ 503 million within discontinued operations based on the revised and final sales prices. 
 On July 1, 2022, the Company completed the sale of William Hill International to 888 Holdings Plc and outstanding borrowings under the Bridge Credit Agreement between the Company and certain lenders party thereto and Deutsche Bank AG, London Branch, as administrative agent and collateral agent, were immediately repaid. After the repayment of the Bridge Credit Agreement, other permitted leakage, and the settlement of related forward contracts, Caesars received net proceeds of $ 730 million. Including open market repurchases and repayments, the Company utilized all $ 730 million to reduce the Company’s outstanding debt. See Note 12. 
 Basis of Presentation 
 Our Financial Statements are prepared in accordance with accounting principles generally accepted in the United States, which requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities. Management believes the accounting estimates are appropriate and reasonably determined. Actual amounts could materially differ from those estimates. 
 The presentation of financial information herein for the periods after the Company’s acquisitions or before divestitures of various properties is not fully comparable to the periods prior to their respective purchase or after the sale dates. See Note 3 for further discussion of the acquisitions and related transactions and Note 4 for properties recently sold. 
 Consolidation of Subsidiaries and Variable Interest Entities 
 Our Financial Statements include the accounts of Caesars Entertainment, Inc. and its subsidiaries after elimination of all intercompany accounts and transactions. 
 We consolidate all subsidiaries in which we have a controlling financial interest and variable interest entities (“VIEs”) for which we or one of our consolidated subsidiaries is the primary beneficiary. Control generally equates to ownership percentage, whereby (i) affiliates that are more than 50% owned are consolidated; (ii) investments in affiliates of 50% or less but greater than 20% are generally accounted for using the equity method where we have determined that we have significant influence over the entities; and (iii) investments in affiliates of 20% or less are generally accounted for as investments in equity securities. 
 We consider ourselves the primary beneficiary of a VIE when we have both the power to direct the activities that most significantly affect the results of the VIE and the right to receive benefits or the obligation to absorb losses of the entity that could be potentially significant to the VIE. We review investments for VIE consideration if a reconsideration event occurs to determine if the investment qualifies, or continues to qualify, as a VIE. If we determine an investment qualifies, or no longer qualifies, as a VIE, there may be a material effect to our Financial Statements. 
 Developments Related to COVID-19 
 Despite the resurgence of the COVID-19 Omicron variant at the beginning of the year, operations at many of our properties experienced positive trends during much of the year ended December 31, 2022, including higher hotel occupancy, particularly in Las Vegas, and increased gaming and food and beverage volumes. The reduction in mandates and restrictions, combined with pent up consumer demand and supplemental discretionary spend from governmental stimulus, resulted in strong results across our properties during 2021. Future variants, mandates or restrictions imposed by various regulatory bodies are uncertain and could have a significant impact on our future operations. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Note 2. Summary of Significant Accounting Policies 
 Additional significant accounting policy disclosures are provided within the applicable Notes to the Financial Statements. 
 Cash and Cash Equivalents 
 Cash equivalents include investments in money market funds that can be redeemed immediately at the current net asset value per share. A money market fund is a mutual fund whose investments are primarily in short-term debt securities designed to maximize current income with liquidity and capital preservation, usually maintaining per share net asset value at a constant amount, such as one dollar. Cash and cash equivalents also include cash maintained for gaming operations. The carrying amounts approximate the fair value because of the short maturity of those instruments (Level 1). 
 Restricted Cash 
 Restricted cash includes certificates of deposit and similar instruments that are subject to remeasurement on a recurring basis (see Note 8) and cash deposits which are restricted under certain operating agreements or restricted for future capital expenditures in the normal course of business. 
 Advertising 
 Advertising costs are expensed in the period the advertising initially takes place. Advertising costs were $ 571 million, $ 518 million and $ 64 million for the years ended December 31, 2022, 2021 and 2020, respectively, and are included within operating expenses. During the years ended December 31, 2022 and 2021, the Company launched significant television, radio and internet marketing campaigns promoting the Caesars Sportsbook. Advertising costs related to the Caesars Digital segment are primarily recorded in Casino expense. 
 Interest Expense, Net 
 
 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 Interest expense $ 2,303 $ 2,320 $ 1,213 
 Capitalized interest ( 26 ) ( 9 ) ( 1 ) 
 Interest income ( 12 ) ( 16 ) ( 10 ) 
 Total interest expense, net $ 2,265 $ 2,295 $ 1,202 

 Recently Issued Accounting Pronouncements 
 Pronouncements Implemented in 2022 
 Effective January 1, 2022, we adopted Accounting Standards Update 2020-04 (amended through December 2022), Reference Rate Reform. We will apply this guidance to applicable contracts and instruments if, and when, they are modified. Such application is not expected to have a material effect on our Financial Statements. 
 
 Note 3. Acquisitions, Purchase Price Accounting and Pro forma Information 
 Acquisition of William Hill 
 On April 22, 2021, we completed the acquisition of William Hill PLC for cash consideration of approximately £ 2.9 billion , or approximately $ 3.9 billion , based on the GBP to USD exchange rate on the closing date. 
 We acquired William Hill PLC and its U.S. subsidiary, William Hill U.S. Holdco (“William Hill US” and together with William Hill PLC, “William Hill”) to better position the Company to address the extensive usage of digital platforms, continued legalization in additional states and jurisdictions, and growing bettor demand, which are driving the market for online sports betting platforms in the U.S. In addition, we continue to leverage the World Series of Poker (“WSOP”) brand, and license the WSOP trademarks for a variety of products and services across these digital platforms. At the time that the William Hill Acquisition was consummated, the Company’s intent was to divest William Hill International. 
 On September 8, 2021, the Company entered into an agreement to sell William Hill International to 888 Holdings Plc for approximately £ 2.2 billion. On April 7, 2022, the Company amended the agreement to sell William Hill International to 888 Holdings Plc for a revised enterprise value of approximately £ 2.0 billion. During the year ended December 31, 2022, the Company recorded impairments to assets held for sale of $ 503 million within discontinued operations based on the revised and final sales prices. On July 1, 2022, the Company completed the sale of William Hill International to 888 Holdings Plc. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Prior to the acquisition, the Company accounted for its investment in William Hill PLC as an investment in equity securities and William Hill US as an equity method investment. Accordingly, the acquisition was accounted for as a business combination achieved in stages, or a “step acquisition.” 
 As mentioned above, the total purchase consideration for William Hill was approximately $ 3.9 billion . The purchase consideration in the acquisition was determined with reference to its acquisition date fair value. 
 
 (In millions) Consideration 
 Cash for outstanding William Hill common stock (a) 
 $ 3,909 
 Fair value of William Hill equity awards 30 
 Settlement of preexisting relationships (net of receivable/payable) 7 
 Settlement of preexisting relationships (net of previously held equity investment and off-market settlement) ( 34 ) 
 Total purchase consideration $ 3,912 

 ____________________ 
 (a) William Hill common stock of approximately 1.0 billion shares as of the acquisition date was paid at £ 2.72 per share, or approximately $ 3.77 per share using the GBP to USD exchange rate on the acquisition date. 
 Final Purchase Price Allocation 
 The fair values are based on management’s analysis, including work performed by third-party valuation specialists, and were finalized over the one-year measurement period. The following table summarizes the allocation of the purchase consideration to the identifiable assets acquired and liabilities assumed of William Hill, with the excess recorded as goodwill as of December 31, 2022: 
 
 (In millions) Fair Value 
 Other current assets $ 164 
 Assets held for sale 4,337 
 Property and equipment, net 55 
 Goodwill 1,154 
 Intangible assets (a) 
 565 
 Other noncurrent assets 317 
 Total assets $ 6,592 
 
 Other current liabilities $ 242 
 Liabilities related to assets held for sale (b) 
 2,142 
 Deferred income taxes 251 
 Other noncurrent liabilities 35 
 Total liabilities 2,670 
 Noncontrolling interests 10 
 Net assets acquired $ 3,912 

 ____________________ 
 (a) Intangible assets consist of gaming rights valued at $ 80 million, trademarks valued at $ 27 million, developed technology valued at $ 110 million, reacquired rights valued at $ 280 million and user relationships valued at $ 68 million. 
 (b) Includes the fair value of debt of $ 1.1 billion related to William Hill International at the acquisition date. 
 The fair values of the assets acquired and liabilities assumed were determined using the market, income, and cost approaches, or a combination. Valuation methodologies under both a market and income approach used for the identifiable net assets acquired in the William Hill Acquisition make use of Level 3 inputs, such as expected cash flows and projected financial results. The market approach indicates value for a subject asset based on available market pricing for comparable assets. 
 Trade receivables and payables and other current and noncurrent assets and liabilities were valued at the existing carrying values as they represented the estimated fair value of those items at the William Hill acquisition date. 
 Assets and liabilities held for sale substantially represented William Hill International which was valued using a combination of approaches including a market approach based on valuation multiples and EBITDA, the relief from royalty method and the replacement cost method. In addition to the approaches described, our estimates were updated to reflect the sale price of William Hill International in the sale to 888 Holdings Plc, described above. 
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 71 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 The acquired net assets of William Hill included certain investments in common stock. Investments with a publicly available share price were valued using the share price on the acquisition date. Investments without publicly available share data were valued at their carrying value, which approximated fair value. 
 Other personal property assets such as furniture, equipment, computer hardware, and fixtures were valued using a cost approach which determined that the carrying values represented fair value of those items at the William Hill acquisition date. 
 Trademarks and developed technology were valued using the relief from royalty method, which presumes that without ownership of such trademarks or technology, the Company would have to make a series of payments to the assets’ owner in return for the right to use their brand or technology. By virtue of their ownership of the respective intangible assets, the Company avoids any such payments and records the related intangible value. The estimated useful lives of the trademarks and developed technology were approximately 15 years and six years , respectively, from the acquisition date. 
 Online user relationships are valued using a cost approach based on the estimated marketing and promotional cost to acquire the new active user base if the user relationships were not already in place and needed to be replaced. We estimated the useful life of the user relationships to be approximately three years from the acquisition date. 
 Operating agreements with non-Caesars entities allowed William Hill to operate retail and online sportsbooks as well as online gaming within certain states. These agreements were valued using the excess earnings method, estimating the projected profits of the business attributable to the rights afforded through the agreements, adjusted for returns of other assets that contribute to the generation of this profit, such as working capital, fixed assets and other intangible assets. We estimated the useful life of these operating agreements to be approximately 20 years from the acquisition date and have included them within amortizing gaming rights. 
 The reacquired rights intangible asset represents the estimated fair value of the Company’s share of William Hill’s forecasted profits arising from the prior contractual arrangement with the Company to operate retail and online sportsbooks and online gaming. This fair value estimate was determined using the excess earnings method, an income-based approach that reflects the present value of the future profit William Hill expected to earn over the remaining term of the contract, adjusted for returns of other assets that contribute to the generation of this profit, such as working capital, fixed assets and other intangible assets. The forecasted profit used within the valuation was adjusted for the settlement of the preexisting relationship in order to avoid double counting of the settlement. Reacquired rights are amortizable over the remaining contractual period of the contract in which the rights were granted and estimated to be approximately 24 years from the acquisition date. 
 Goodwill is the result of expected synergies from the operations of the combined company and future customer relationships including the brand names and strategic partner relationships of Caesars and the technology and assembled workforce of William Hill. The goodwill acquired will not generate amortization deductions for income tax purposes. 
 The fair value of long-term debt assumed was calculated based on market quotes. 
 The Company recognized acquisition-related transaction costs of $ 21 million, $ 68 million and $ 8 million for the years ended December 31, 2022, 2021 and 2020, respectively, excluding additional transaction costs associated with sale of William Hill International. These costs were associated with legal, professional services, and certain severance and retention costs and were primarily recorded in Transaction and other costs in our Statements of Operations. 
 For the period of April 22, 2021 through December 31, 2021, the operations of William Hill generated net revenues of $ 183 million, excluding discontinued operations (see Note 4), and a net loss of $ 415 million. 
 Unaudited Pro Forma Financial Information 
 The following unaudited pro forma financial information is presented to illustrate the estimated effects of the William Hill Acquisition as if it had occurred on January 1, 2020. The pro forma amounts include the historical operating results of the Company and William Hill prior to the acquisition, with adjustments directly attributable to the acquisition. The pro forma results include adjustments and consequential tax effects to reflect incremental amortization expense to be incurred based on preliminary fair values of the identifiable intangible assets acquired, eliminate gains and losses related to certain investments and adjustments to the timing of acquisition related costs and expenses incurred during the year ended December 31, 2021. The unaudited pro forma financial information is not necessarily indicative of the financial position or results that would have occurred had the William Hill Acquisition been consummated as of the dates indicated, nor is it indicative of any future results. In addition, the unaudited pro forma financial information does not reflect the expected realization of any synergies or cost savings associated with the acquisition. 
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 72 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 Years Ended December 31, 
 (In millions) 2021 2020 
 Net revenues $ 9,696 $ 3,834 
 Net loss ( 893 ) ( 1,991 ) 
 Net loss attributable to Caesars ( 896 ) ( 1,989 ) 

 
 Consolidation of Horseshoe Baltimore 
 On August 26, 2021 (the “Consolidation Date”), the Company increased its ownership interest in Horseshoe Baltimore, a property which it also manages, to approximately 75.8 % for cash consideration of $ 55 million. Our previously held investment was remeasured as of the date of the change in ownership and the Company recognized a gain of $ 40 million during the year ended December 31, 2021. Subsequent to the change in ownership, the Company was determined to have a controlling financial interest and began to consolidate the operations of Horseshoe Baltimore. 
 Prior to the purchase, the Company held an interest in Horseshoe Baltimore of approximately 44.3 % which was accounted for as an equity method investment. 
 
 (In millions) Consideration 
 Cash for additional ownership interest $ 55 
 Preexisting relationships (net of receivable/payable) 18 
 Preexisting relationships (net of previously held equity investment) 81 
 Total purchase consideration $ 154 

 
 Final Purchase Price Allocation 
 The fair values are based on management’s analysis, including work performed by a third-party valuation specialist, and were finalized over the one-year measurement period. The following table summarizes the allocation of the purchase consideration to the identifiable assets and liabilities of Horseshoe Baltimore, with excess recorded as goodwill as of December 31, 2022: 
 
 (In millions) Fair Value 
 Current assets $ 60 
 Property and equipment, net 317 
 Goodwill 63 
 Intangible assets (a) 
 53 
 Other noncurrent assets 183 
 Total assets $ 676 
 
 Current liabilities $ 26 
 Long-term debt 272 
 Other long-term liabilities 182 
 Total liabilities 480 
 Noncontrolling interests 42 
 Net assets acquired $ 154 

 ____________________ 
 (a) Intangible assets consist of gaming rights valued at $ 43 million and customer relationships valued at $ 10 million. 
 The fair values of the assets acquired and liabilities assumed were determined using the market, income, and cost approaches, or a combination. Valuation methodologies under both a market and income approach used for the identifiable net assets of Horseshoe Baltimore on the Consolidation Date make use of Level 3 inputs, such as expected cash flows and projected financial results. The market approach indicates value for a subject asset based on available market pricing for comparable assets. 
 Trade receivables and payables and other current and noncurrent assets and liabilities were valued at the existing carrying values as they represented the estimated fair value of those items on the Consolidation Date. 
 Other personal property assets such as furniture, equipment, computer hardware, and fixtures were valued at the existing carrying values as they closely represented the estimated fair value of those items on the Consolidation Date. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 The fair value of the buildings and improvements were estimated via the income approach. The remaining estimated useful life of the buildings and improvements on the Consolidation Date is 40 years. 
 The right of use asset and operating lease liability related to a ground lease for the site on which Horseshoe Baltimore is located was recorded at fair value and will be amortized over the estimated remaining useful life due to changes in the underlying fair value and estimated remaining useful life of the building and improvements. Renewal options are considered to be reasonably certain. The income approach was used to determine fair value, based on the estimated present value of the future lease payments over the lease term, including renewal options, using an incremental borrowing rate of approximately 7.6 %. 
 Customer relationships are valued using an income approach, comparing the prospective cash flows with and without the customer relationships in place to estimate the fair value of the customer relationships, with the fair value assumed to be equal to the discounted cash flows of the business that would be lost if the customer relationships were not in place and needed to be replaced. We estimate the useful life of these customer relationships to be approximately seven years from the Consolidation Date. 
 The fair value of the gaming rights was determined using the excess earnings method, which is an income approach methodology that estimates the projected cash flows of the business attributable to the gaming license intangible asset, which is net of charges for the use of other identifiable assets of the business including working capital, fixed assets and other intangible assets. The acquired gaming rights are considered to have an indefinite life. 
 The goodwill acquired will generate amortization deductions for income tax purposes. 
 The fair value of long-term debt has been calculated based on market quotes. 
 For the period of August 26, 2021 through December 31, 2021, the operations of Horseshoe Baltimore generated net revenues of $ 72 million, and a net income of $ 4 million. 
 Unaudited Pro Forma Financial Information 
 The following unaudited pro forma financial information is presented to illustrate the estimated effects of the Horseshoe Baltimore consolidation as if it had occurred on January 1, 2020. The pro forma amounts include the historical operating results of the Company and Horseshoe Baltimore prior to the consolidation. The pro forma results include adjustments and consequential tax effects to reflect incremental amortization expense to be incurred based on preliminary fair values of the identifiable intangible assets acquired and the adjustments to eliminate certain revenues and expenses which are considered intercompany activities. The unaudited pro forma financial information is not necessarily indicative of the financial results that would have occurred had the consolidation of Horseshoe Baltimore occurred as of the dates indicated, nor is it indicative of any future results. In addition, the unaudited pro forma financial information does not reflect the expected realization of any synergies or cost savings associated with the consolidation. 
 
 Years Ended December 31, 
 (In millions) 2021 2020 
 Net revenues $ 9,693 $ 3,764 
 Net loss ( 1,049 ) ( 1,784 ) 
 Net loss attributable to Caesars ( 1,056 ) ( 1,778 ) 

 Merger with Caesars Entertainment Corporation 
 On July 20, 2020, the Merger was consummated and Former Caesars became a wholly-owned subsidiary of the Company. The strategic rationale for the Merger includes, but is not limited to, the following: 
 • Creation of the largest owner, operator and manager of domestic gaming assets 
 • Diversification of the Company’s domestic footprint 
 • Access to iconic brands, rewards programs and new gaming opportunities expected to enhance customer experience 
 • Realization of significant identified synergies 
 The total purchase consideration for Former Caesars was $ 10.9 billion. The estimated purchase consideration in the acquisition was determined with reference to its acquisition date fair value. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 (In millions) Consideration 
 Cash consideration paid $ 6,090 
 Shares issued to Former Caesars shareholders (a) 
 2,381 
 Cash paid to retire Former Caesars debt 2,356 
 Other consideration paid 48 
 Total purchase consideration $ 10,875 

 ____________________ 
 (a) Former Caesars common stock was converted into the right to receive approximately 0.3085 shares of the Company’s Common Stock, with a value equal to approximately $ 12.41 in cash (based on the volume weighted average price per share of the Company’s Common Stock for the ten trading days ending on July 16, 2020). 
 Final Purchase Price Allocation 
 The fair values are based on management’s analysis including work performed by third party valuation specialists, which were finalized over the one-year measurement period. The following table summarizes the allocation of the purchase consideration to the identifiable assets acquired and liabilities assumed of Former Caesars, with the excess recorded as goodwill as of December 31, 2021: 
 
 (In millions) Fair Value 
 Current and other assets $ 3,540 
 Property and equipment 13,096 
 
 Goodwill 9,064 
 Intangible assets (a) 
 3,394 
 Other noncurrent assets 710 
 Total assets $ 29,804 
 
 Current liabilities $ 1,771 
 Financing obligation 8,149 
 Long-term debt 6,591 
 Noncurrent liabilities 2,400 
 Total liabilities 18,911 
 Noncontrolling interests 18 
 Net assets acquired $ 10,875 

 ____________________ 
 (a) Intangible assets consist of gaming rights valued at $ 396 million, trade names valued at $ 2.1 billion, the Caesars Rewards programs valued at $ 523 million and customer relationships valued at $ 425 million. 
 The fair values of the assets acquired and liabilities assumed were determined using the market, income, and cost approaches, or a combination. Valuation methodologies under both a market and income approach used for the identifiable net assets acquired in the Former Caesars acquisition make use of Level 3 inputs, such as expected cash flows and projected financial results. The market approach indicates value for a subject asset based on available market pricing for comparable assets. 
 Trade receivables and payables and other current and noncurrent assets and liabilities were valued at the existing carrying values as they represented the estimated fair value of those items at the Former Caesars acquisition date. Assets and liabilities held for sale are recorded at fair value, less costs to sell, based on the agreements reached as of the acquisition date, or an income approach. 
 Certain financial assets acquired were determined to have experienced more than insignificant deterioration of credit quality since origination. A reconciliation of the difference between the purchase price of financial assets, including acquired markers, and the face value of the assets is as follows: 
 
 (In millions) 
 Purchase price of financial assets $ 95 
 Allowance for credit losses at the acquisition date based on the acquirer’s assessment 
 89 
 Discount attributable to other factors 2 
 Face value of financial assets $ 186 

 
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 75 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 The fair value of land was determined using the sales comparable approach. The market data is then adjusted for any significant differences, to the extent known, between the identified comparable sites and the site being valued. The value of building and site improvements was estimated via the income approach. Other personal property assets such as furniture, gaming and computer equipment, fixtures, computer software, and restaurant equipment were valued using the cost approach which is based on replacement or reproduction costs of the asset. The cost approach is an estimation of fair value developed by computing the current cost of replacing a property and subtracting any depreciation resulting from one or more of the following factors: physical deterioration, functional obsolescence, and/or economic obsolescence. 
 Non-amortizing intangible assets acquired primarily include trademarks, Caesars Rewards and gaming rights. The fair value for these intangible assets was determined using either the relief from royalty method and excess earnings method under the income approach or a replacement cost market approach. 
 Trademarks and Caesars Rewards were valued using the relief from royalty method, which presumes that without ownership of such trademarks or loyalty program, the Company would have to make a stream of payments to a brand or franchise owner in return for the right to use their name or program. By virtue of this asset, the Company avoids any such payments and records the related intangible value of the Company’s ownership of the brand name or program. The acquired trademarks, including Caesars Rewards, are indefinite lived intangible assets. 
 Customer relationships are valued using an income approach, comparing the prospective cash flows with and without the customer relationships in place to estimate the fair value of the customer relationships, with the fair value assumed to be equal to the discounted cash flows of the business that would be lost if the customer relationships were not in place and needed to be replaced. We estimated the useful life of these customer relationships to be approximately seven years from the Merger date. 
 Gaming rights include our gaming licenses in various jurisdictions and may have indefinite lives or an estimated useful life. The fair value of the gaming rights was determined using the excess earnings or replacement cost methodology, based on whether the license resides in gaming jurisdictions where competition is limited to a specified number of licensed gaming operators. The excess earnings methodology is an income approach methodology that estimates the projected cash flows of the business attributable to the gaming license intangible asset, which is net of charges for the use of other identifiable assets of the business including working capital, fixed assets and other intangible assets. The replacement cost of the gaming license was used as an indicator of fair value. The acquired gaming rights have indefinite lives, with the exception of one jurisdiction in which we estimated the useful life of the license to be approximately 34 years from the Merger date. 
 Goodwill is the result of expected synergies from the operations of the combined company and the assembled workforce of Former Caesars. The final assignment of goodwill to reporting units has not been completed. The goodwill acquired will not generate amortization deductions for income tax purposes. 
 The fair value of long-term debt has been calculated based on market quotes. The fair value of the financing obligations was calculated as the net present value of both the fixed base rent payments and the forecasted variable payments plus the expected residual value of the land and building returned at the end of the expected usage period. 
 The Company recognized acquisition-related transaction costs of $ 30 million and $ 160 million for the years ended December 31, 2021, and 2020, respectively, in connection with the Merger. Transaction costs were associated with legal, IT costs, internal labor and professional services and were recorded in Transaction and other costs in our Statements of Operations. 
 For the period of July 20, 2020 through December 31, 2020, the properties of Former Caesars generated net revenues of $ 2.1 billion, excluding discontinued operations, and a net loss of $ 1.2 billion. 
 Unaudited Pro Forma Financial Information 
 The following unaudited pro forma financial information is presented to illustrate the estimated effects of the acquisition of Former Caesars as if it had occurred on January 1, 2019. The pro forma amounts include the historical operating results of the Company and Former Caesars prior to the acquisition, with adjustments directly attributable to the acquisition. The pro forma results include adjustments and consequential tax effects to reflect incremental depreciation and amortization expense to be incurred based on preliminary fair values of the identifiable property and equipment and intangible assets acquired, the incremental interest expense associated with the issuance of debt to finance the acquisition and the adjustments to exclude acquisition related costs incurred during the year ended December 31, 2020 as if incurred on January 1, 2019. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations of the combined company were, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition. 
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 76 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 (In millions) Year Ended December 31, 2020 
 Net revenues $ 5,926 
 Net loss ( 2,738 ) 
 Net loss attributable to Caesars ( 2,670 ) 

 
 
 Note 4. Assets and Liabilities Held for Sale 
 The Company periodically divests assets to raise capital or, in previous cases, to comply with conditions, terms, obligations or restrictions imposed by antitrust, gaming and other regulatory entities. The carrying value of the net assets held for sale are compared to the expected selling price and any expected losses are recorded immediately. Gains or losses associated with the disposal of assets held for sale are recorded within other operating costs, unless the assets represent a discontinued operation. 
 Held for sale - Sold 
 Baton Rouge, Evansville, MontBleu, Shreveport, Kansas City and Vicksburg Divestitures 
 On December 1, 2020, the Company entered into a definitive agreement to sell the operations of Belle of Baton Rouge Casino & Hotel (“Baton Rouge”) to CQ Holding Company, Inc. As a result, an impairment charge totaling $ 50 million was recorded during the year ended December 31, 2020 due to the carrying value exceeding the estimated net sales proceeds. On May 5, 2022, the Company consummated the sale of the equity interests of Baton Rouge to CQ Holding Company, Inc., resulting in a loss of $ 3 million. 
 On June 3, 2021, the Company consummated the sale of the real property and equity interests of Tropicana Evansville (“Evansville”) to Gaming and Leisure Properties, Inc. (“GLPI”) and Bally’s Corporation, respectively, for $ 480 million, resulting in a gain of $ 12 million. 
 On April 24, 2020, the Company entered into a definitive agreement to sell the equity interests of MontBleu Casino Resort & Spa (“MontBleu”) to Bally’s Corporation. As a result, an impairment charge totaling $ 45 million was recorded during the year ended December 31, 2020 due to the carrying value exceeding the estimated net sales proceeds. On April 6, 2021, the Company consummated the sale of the equity interests of MontBleu to Bally’s Corporation for $ 15 million, resulting in a gain of less than $ 1 million. The Company received the payment in full on April 5, 2022. 
 On December 23, 2020, the Company consummated the sale of Eldorado Shreveport (“Shreveport”) to Bally's Corporation for $ 140 million resulting in a gain of $ 29 million. On July 1, 2020, the Company consummated the sale of the equity interests of the entities that hold Lady Luck Casino Vicksburg (“Vicksburg”) and Isle of Capri Kansas City (“Kansas City”) to Bally’s Corporation (formerly Twin River Worldwide Holdings, Inc.) for $ 230 million resulting in a gain of $ 8 million. 
 Prior to their respective closing dates, Baton Rouge, Evansville, MontBleu, Shreveport, Kansas City and Vicksburg, met the requirements for presentation as assets held for sale. However, they did not meet the requirements for presentation as discontinued operations. All properties were previously reported in the Regional segment. 
 The following information presents the net revenues and net income (loss) of previously held for sale properties, which were recently sold: 
 
 Year Ended December 31, 2022 
 (In millions) Baton Rouge 
 Net revenues $ 6 
 Net loss ( 1 ) 

 
 
 Year Ended December 31, 2021 
 (In millions) Baton Rouge Evansville MontBleu 
 Net revenues $ 17 $ 58 $ 11 
 Net income (loss) ( 2 ) 26 4 

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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 Year Ended December 31, 2020 
 (In millions) Baton Rouge Evansville MontBleu Shreveport Kansas City Vicksburg 
 Net revenues $ 15 $ 98 $ 31 $ 68 $ 18 $ 7 
 Net income (loss) ( 70 ) ( 5 ) ( 42 ) 12 3 ( 1 ) 

 The assets and liabilities held for sale were as follows as of December 31, 2021: 
 
 
 (In millions) Baton Rouge 
 Assets: 
 Cash $ 3 
 Property and equipment, net 2 
 
 
 Other assets, net 1 
 Assets held for sale $ 6 
 Liabilities: 
 Current liabilities $ 3 
 Other long-term liabilities 1 
 Liabilities related to assets held for sale $ 4 

 Held for sale - Discontinued operations 
 On the closing date of the Merger, Harrah’s Louisiana Downs, Caesars Southern Indiana and Caesars UK Group, which included Emerald Resort & Casino, met held for sale criteria. The operations of these properties, until their respective date of divestiture, have been presented within discontinued operations. In addition, at the time that the William Hill Acquisition was consummated, the Company’s intent was to divest William Hill International. Accordingly, the assets and liabilities of these reporting units were classified as held for sale with operations presented within discontinued operations. 
 On September 3, 2020, the Company and VICI Properties L.P., a Delaware limited partnership (“VICI”) entered into an agreement to sell the equity interests of Harrah’s Louisiana Downs to Rubico Acquisition Corp. for $ 22 million. On November 1, 2021, the sale of Harrah’s Louisiana Downs was completed and proceeds were split between the Company and VICI. The annual base rent payments under the Regional Master Lease between Caesars and VICI remained unchanged. 
 On December 24, 2020, the Company entered into an agreement to sell the equity interests of Caesars Southern Indiana to the Eastern Band of Cherokee Indians (“EBCI”) for $ 250 million, subject to customary purchase price adjustments. On September 3, 2021, the Company completed the sale of Caesars Southern Indiana, resulting in a gain of $ 12 million. In connection with this transaction, the Company’s annual base rent payments to VICI under the Regional Master Lease were reduced by $ 33 million. Additionally, the Company and EBCI entered into a 10-year brand license agreement, for the continued use of the Caesars brand and Caesars Rewards loyalty program at Caesars Southern Indiana. The agreement contains cancellation rights in exchange for a termination fee at the buyer’s discretion following the fifth anniversary of the agreement. 
 On July 16, 2021, the Company completed the sale of Caesars UK Group, in which the buyer assumed all liabilities associated with the Caesars UK Group, and recorded an impairment of $ 14 million within discontinued operations. 
 The following information presents the net revenues and net income (loss) for the Company’s properties that are part of discontinued operations for the year ended December 31, 2022 and 2021: 
 
 
 Year Ended December 31, 2022 
 (In millions) William Hill International 
 Net revenues $ 820 
 Net loss ( 448 ) 

 
 
 Year Ended December 31, 2021 
 (In millions) Harrah’s Louisiana Downs Caesars UK Group Caesars Southern Indiana William Hill International 
 Net revenues $ 48 $ 30 $ 155 $ 1,221 
 Net income (loss) 10 ( 30 ) 27 ( 18 ) 

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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 As of December 31, 2021, assets and liabilities held for sale of $ 3.8 billion and $ 2.7 billion, respectively, related to William Hill International and included $ 617 million of debt related to a Bridge Credit Agreement, which was repaid upon the sale of William Hill International on July 1, 2022. In addition, $ 850 million of debt was held for sale related to two trust deeds assumed in the William Hill Acquisition. One trust deed related to £ 350 million aggregate principal amount of 4.750 % Senior Notes due 2026, and the other trust deed related to £ 350 million aggregate principal amount of 4.875 % Senior Notes due 2023. The Bridge Credit Agreement was repaid and the two trust deeds were divested with the completion of the sale of William Hill International on July 1, 2022 and the Company is no longer subject to the related covenants or guarantees. 
 
 Note 5. Investments in and Advances to Unconsolidated Affiliates 
 NeoGames 
 The acquired net assets of William Hill included an investment in NeoGames S.A. (“NeoGames”), a global leader of iLottery solutions and services to national and state-regulated lotteries, and other investments. On September 16, 2021, the Company sold a portion of its shares of NeoGames common stock for $ 136 million which decreased its ownership interest from 24.5 % to approximately 8.4 %. Additionally, on March 14, 2022 the Company sold its remaining 2 million shares at fair value for $ 26 million. During the years ended December 31, 2022 and 2021, the Company recorded losses related to the investment in NeoGames of $ 34 million and $ 54 million, respectively, which is included within Other income (loss) on the Statements of Operations. 
 Pompano Joint Venture 
 In April 2018, the Company entered into a joint venture with Cordish Companies (“Cordish”) to plan and develop a mixed-use entertainment and hospitality destination expected to be located on unused land adjacent to the casino and racetrack at the Company’s Pompano property. As the managing member, Cordish will operate the business and manage the development, construction, financing, marketing, leasing, maintenance and day-to-day operation of the various phases of the project. Additionally, Cordish will be responsible for the development of the master plan for the project with the Company’s input and will submit it for the Company’s review and approval. In June 2021, the joint venture issued a capital call and we contributed $ 3 million, for a total of $ 4 million in cash contributions since inception of the joint venture. On February 12, 2021, the Company contributed 186 acres to the joint venture with a fair value of $ 61 million. Total contributions of approximately 206 acres of land have been made with a fair value of approximately $ 69 million, and the Company has no further obligation to contribute additional real estate or cash. 
 While the Company holds a 50 % variable interest in the joint venture, it is not the primary beneficiary; as such the investment in the joint venture is accounted for using the equity method. The Company participates evenly with Cordish in the profits and losses of the joint venture, which are included in Transaction and other costs on the Statements of Operations. 
 As of December 31, 2022 and 2021, the Company’s investment in the joint venture is recorded in Investment in and advances to unconsolidated affiliates on the Balance Sheets. 
 
 Note 6. Property and Equipment 
 Property and equipment are stated at cost, except for assets acquired in our business combinations which were adjusted for fair value under Accounting Standards Codification (“ASC”) 805. Internal use software costs are capitalized during the application development stage. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful life of the asset as noted in the table below, or the term of the lease, whichever is less. Gains or losses on the disposal of property and equipment are included in operating income. Useful lives of each asset class are generally as follows: 
 
 Buildings and improvements 3 to 40 years 
 
 Land improvements 12 to 40 years 
 
 Furniture, fixtures and equipment 3 to 15 years 
 
 Riverboats 30 years 
 

 
 A portion of our property and equipment is subject to various operating leases for which we are the lessor. Leased property includes our hotel rooms, convention space and retail space through various short-term and long-term operating leases. See Note 10 for further discussion of our leases. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 The Company evaluates its property and equipment and other long-lived assets for impairment whenever indicators of impairment exist. The Company compares the estimated future cash flows of the asset, on an undiscounted basis, to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, then an impairment charge may be recorded for any difference between fair value and the carrying value. All recognized impairment losses are recorded as operating expenses, unless the assets represent a discontinued operation. For the year ended December 31, 2020, we recorded a tangible asset impairment of $ 4 million related to the sale of a corporate airplane. See Note 4 for further discussion of impairment on assets held for sale. 
 
 Property and Equipment, Net 
 December 31, 
 (In millions) 2022 2021 
 Land $ 2,092 $ 2,125 
 Buildings, riverboats, and leasehold and land improvements 13,094 12,433 
 Furniture, fixtures, and equipment 2,054 1,650 
 Construction in progress 351 395 
 Total property and equipment 17,591 16,603 
 Less: accumulated depreciation ( 2,993 ) ( 2,002 ) 
 Total property and equipment, net $ 14,598 $ 14,601 
 
 

 
 Depreciation Expense 
 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 Depreciation expense $ 1,018 $ 987 $ 527 
 

 Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the related lease. 
 
 Note 7. Goodwill and Intangible Assets, net 
 The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The Company determines the estimated fair values after review and consideration of relevant information including discounted cash flows, quoted market prices, and estimates made by management. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is recorded as goodwill. 
 Goodwill and indefinite-lived intangible assets must be reviewed for impairment at least annually and between annual test dates in certain circumstances. The Company performs its annual impairment tests as of October 1 of each fiscal year. The Company performs this assessment more frequently if impairment indicators exist. We utilized an income approach using a discounted cash flow method to determine the fair value of our goodwill. The Company performed the annual goodwill impairment test by comparing the fair value of each reporting unit with its carrying amount. The Company determines the estimated fair value of each reporting unit based on a combination of earnings before interest, taxes, depreciation and amortization (“EBITDA”), valuation multiples, and estimated future cash flows discounted at rates commensurate with the capital structure and cost of capital of comparable market participants, giving appropriate consideration to the prevailing borrowing rates within the casino industry in general, and expected sales proceeds. The Company also evaluates the aggregate fair value of all of its reporting units and other non-operating assets in comparison to its aggregate debt and equity market capitalization at the test date. EBITDA multiples and discounted cash flows are common measures used to value businesses in the industry. 
 Indefinite-lived intangible assets consist primarily of trademarks, Caesars Rewards and expenditures associated with obtaining racing and gaming licenses. Indefinite-lived intangible assets are not subject to amortization but are subject to an annual impairment test. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess amount. 
 Trademarks and Caesars Rewards were valued using the relief from royalty method, which presumes that without ownership of such trademarks or loyalty program, the Company would have to make a stream of payments to a brand or franchise owner in return for the right to use their name or program. By virtue of this asset, the Company avoids any such payments and records the related intangible value of the Company’s ownership of the brand name or program. 
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 80 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Gaming rights represent intangible assets acquired from the purchase of a gaming entity located in a gaming jurisdiction where competition is limited, such as when only a limited number of gaming operators are allowed to operate in the jurisdiction. These gaming license rights are not subject to amortization as the Company has determined that they have indefinite useful lives. For gaming jurisdictions with high barriers of renewal of the gaming rights, such as material costs of renewal, the gaming rights are deemed to have a finite useful life and are amortized over the expected useful life. We used the Excess Earnings Method and a Cost Approach for estimating fair value for these gaming rights. 
 Finite-lived intangible assets consist of trade names and customer relationships acquired in business combinations. Amortization is recorded using the straight-line method over the estimated useful life of the asset. The Company evaluates for impairment whenever indicators of impairment exist. When indicators are noted, the Company then compares estimated future cash flows, undiscounted, to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value, no impairment is recorded. Impairment charges are presented on the statements of operations. 
 As a result of the finalized and approved capital and operating plans and the completion of the annual impairment testing, the Company recognized impairment charges in our Regional segment primarily due to an increase in the related discount rates, which represents the higher required cost of capital as a result of the macroeconomic environment and projected outlook. The Company identified one property, where the estimated fair value of the associated gaming rights was less than the carrying value and recorded an impairment of $ 30 million. In addition, the Company identified two reporting units with which the estimated fair value of the respective reporting unit was below the carrying value and we recorded a total impairment of $ 78 million to goodwill. 
 In December 2021, the Company approved a capital plan which included the planned rebranding of certain of our properties. The Company utilized an income approach to determine the fair value of the trademarks subject to rebranding based on their expected future cash flows, which resulted in an impairment charge of $ 102 million during the year ended December 31, 2021. The adjusted carrying values of these trademarks were amortized over their respective useful lives. 
 During the year ended December 31, 2020, the Company recognized impairment charges in our Regional segment related to goodwill and trade names totaling $ 100 million and $ 16 million, respectively, due to declines in recent performance and the expected impact on future cash flows as a result of COVID-19. 
 When assets are deemed to be held for sale, any associated intangible assets, including goodwill, are reclassified to Assets held for sale on our Balance Sheets (see Note 4). 
 
 Changes in Carrying Value of Goodwill by Segment 
 (In millions) Las Vegas Regional Caesars Digital Managed and Branded CEI Total 
 Gross Goodwill: 
 Balance as of January 1, 2021 
 $ 6,873 $ 3,045 $ 50 $ — $ 9,968 
 Acquired (a) 
 — 63 1,148 — 1,211 
 Other 16 ( 15 ) — — 1 
 Balance as of December 31, 2021 
 6,889 3,093 1,198 — 11,180 
 Accumulated Impairment: 
 Balance as of January 1, 2021 
 — ( 104 ) — — ( 104 ) 
 Balance as of December 31, 2021 
 — ( 104 ) — — ( 104 ) 
 Net carrying value, as of December 31, 2021 
 $ 6,889 $ 2,989 $ 1,198 $ — $ 11,076 
 
 Gross Goodwill: 
 Balance as of January 1, 2022 
 $ 6,889 $ 3,093 $ 1,198 $ — $ 11,180 
 
 Other (a) 
 — — 6 — 6 
 Balance as of December 31, 2022 
 6,889 3,093 1,204 — 11,186 
 Accumulated Impairment: 
 Balance as of January 1, 2022 
 — ( 104 ) — — ( 104 ) 
 Impairment — ( 78 ) — — ( 78 ) 
 
 Balance as of December 31, 2022 
 — ( 182 ) — — ( 182 ) 
 
 Net carrying value, as of December 31, 2022 (b) 
 $ 6,889 $ 2,911 $ 1,204 $ — $ 11,004 

 ____________________ 
 (a) See Note 3 for further detail. Purchase price allocation finalized in 2022. 
 (b) $ 468 million of goodwill within our Regional segment is associated with reporting units with zero or negative carrying value. 
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 81 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 Changes in Carrying Value of Intangible Assets Other than Goodwill 
 Amortizing Non-Amortizing Total 
 (In millions) 2022 2021 2022 2021 2022 2021 
 Balance as of January 1 $ 1,209 $ 501 $ 3,711 $ 3,782 $ 4,920 $ 4,283 
 Impairment — — ( 30 ) ( 102 ) ( 30 ) ( 102 ) 
 Amortization expense ( 187 ) ( 139 ) — — ( 187 ) ( 139 ) 
 
 Acquired (a) 
 — 575 — 43 — 618 
 Acquisition of gaming rights and trademarks 10 253 1 50 11 303 
 
 Other 28 19 ( 28 ) ( 62 ) — ( 43 ) 
 Balance as of December 31 $ 1,060 $ 1,209 $ 3,654 $ 3,711 $ 4,714 $ 4,920 

 ____________________ 
 (a) See Note 3 for further detail. 
 
 Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill 
 December 31, 2022 December 31, 2021 
 (Dollars in millions) Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount 
 Amortizing intangible assets 
 Customer relationships 3 - 7 years 
 $ 587 $ ( 276 ) $ 311 $ 587 $ ( 187 ) $ 400 
 Gaming rights and other 10 - 34 years 
 212 ( 16 ) 196 174 ( 7 ) 167 
 Trademarks 15 years 
 313 ( 73 ) 240 322 ( 21 ) 301 
 Reacquired rights 24 years 
 250 ( 17 ) 233 250 ( 7 ) 243 
 Technology 6 years 
 110 ( 30 ) 80 110 ( 12 ) 98 
 $ 1,472 $ ( 412 ) 1,060 $ 1,443 $ ( 234 ) 1,209 
 
 Non-amortizing intangible assets 
 Trademarks 1,998 1,998 
 Gaming rights 1,133 1,190 
 Caesars Rewards 523 523 
 3,654 3,711 
 Total amortizing and non-amortizing intangible assets, net $ 4,714 $ 4,920 

 
 Amortization expense with respect to intangible assets for the years ended December 31, 2022, 2021 and 2020 totaled $ 187 million, $ 139 million and $ 56 million, respectively, which is included in depreciation and amortization in the Statements of Operations. 
 
 Estimated Five-Year Amortization 
 Years Ended December 31, 
 (In millions) 2023 2024 2025 2026 2027 
 Estimated annual amortization expense $ 141 $ 126 $ 119 $ 119 $ 76 

 
 
 Note 8. Fair Value Measurements 
 Items Measured at Fair Value on a Recurring Basis 
 The following table sets forth the assets and liabilities, where applicable, measured at fair value on a recurring basis, by input level, in the Balance Sheets at December 31, 2022 and 2021: 
 
 (In millions) December 31, 2022 
 Assets: Level 1 Level 2 Level 3 Total 
 
 Marketable securities 2 2 — 4 
 
 Total assets at fair value $ 2 $ 2 $ — $ 4 
 
 
 
 
 

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 82 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 (In millions) December 31, 2021 
 Assets: Level 1 Level 2 Level 3 Total 
 Restricted cash $ 1 $ 1 $ — $ 2 
 Marketable securities 69 9 — 78 
 Derivative instruments - FX forward — 1 — 1 
 Total assets at fair value $ 70 $ 11 $ — $ 81 
 Liabilities: 
 Derivative instruments - interest rate swaps $ — $ 28 $ — $ 28 
 Derivative instruments - FX forwards — 16 — 16 
 Total liabilities at fair value $ — $ 44 $ — $ 44 

 
 
 Change in restricted investments using Level 3 inputs 
 (In millions) Level 3 Investment 
 Fair value of investment at December 31, 2020 
 $ 44 
 Change in fair value 7 
 Acquisition of William Hill ( 51 ) 
 
 Fair value of investment at December 31, 2021 
 $ — 
 
 
 
 

 
 Restricted Cash 
 The estimated fair values of the Company’s restricted cash are based upon quoted prices available in active markets (Level 1), or quoted prices for similar assets in active and inactive markets (Level 2) and represent the amounts the Company would expect to receive if the Company sold instruments classified as restricted cash. Restricted cash includes cash equivalents held in short-term certificate of deposit accounts or money market type funds. Restricted cash that is not subject to remeasurement on a recurring basis is not included in the table above. 
 Marketable Securities 
 Marketable securities consist primarily of trading securities held by the Company’s captive insurance subsidiary, deferred compensation plans and investments acquired in the William Hill Acquisition. The estimated fair values of the Company’s marketable securities are determined on an individual asset basis based upon quoted prices of identical assets available in active markets (Level 1), quoted prices of identical assets in inactive markets, or quoted prices for similar assets in active and inactive markets (Level 2), and represent the amounts the Company would expect to receive if the Company sold these marketable securities. 
 The Company held common shares of Flutter Entertainment PLC, which is a publicly traded company with a readily determinable share price. During the year ended December 31, 2020, the Company sold a portion of these shares for $ 24 million and recorded a gain of $ 14 million. On July 7, 2021, the Company sold the remaining shares for $ 9 million and recorded a loss of $ 1 million on the sale date. Gains and losses have been included in Other income (loss) on the Statements of Operations. 
 Derivative Instruments 
 The Company does not purchase or hold any derivative financial instruments for trading purposes. 
 Forward contracts 
 T he Company entered into several foreign exchange forward contracts with third parties to hedge the risk of fluctuations in the foreign exchange rates between USD and GBP. During the years ended December 31, 2022 and 2021, the Company recorded a gain of $ 73 million and $ 23 million, respectively , related to forward contracts, which was recorded in the Other income (loss) on the Statements of Operations. All forward contracts have been settled as of July 1, 2022. 
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 83 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Interest Rate Swap Derivatives 
 We assumed Former Caesars’ interest rate swaps to manage the mix of assumed debt between fixed and variable rate instruments. During the year ended December 31, 2022, we had four interest rate swap agreements to fix the interest rate on $ 1.3 billion of variable rate debt related to the CRC Credit Agreement. The interest rate swaps were designated as cash flow hedging instruments. The difference to be paid or received under the terms of the interest rate swap agreements was accrued as interest rates changed and recognized as an adjustment to interest expense at settlement. The term of the interest rate swaps ended on December 31, 2022. 
 Valuation Methodology 
 The estimated fair values of our interest rate swap derivative instruments were derived from market prices obtained from dealer quotes for similar, but not identical, assets or liabilities. Such quotes represented the estimated amounts we would receive or pay to terminate the contracts. The interest rate swap derivative instruments were included in either Other assets, net or Other long-term liabilities on our Balance Sheets. Our derivatives were recorded at their fair values, adjusted for the credit rating of the counterparty if the derivative was an asset, or adjusted for the credit rating of the Company if the derivative was a liability. None of our derivative instruments were offset and all were classified as Level 2. 
 Financial Statement Effect 
 The effect of interest rate swaps designated as hedging instruments on the Balance Sheets for amounts transferred into Accumulated other comprehensive income (loss) (“AOCI”) before tax was a gain of $ 28 million and $ 62 million, during the years ended December 31, 2022 and 2021, respectively. AOCI reclassified to Interest expense on the Statements of Operations was $ 12 million and $ 59 million, for years ended December 31, 2022 and 2021, respectively. As of December 31, 2021, the interest rate swaps derivative liability was $ 28 million. Net settlement of these interest rate swaps resulted in the reclassification of deferred gains and losses within AOCI to be reclassified to the income statement as a component of interest expense as settlement occurred. 
 Accumulated Other Comprehensive Income 
 The changes in AOCI by component, net of tax, for the periods through December 31, 2022 and 2021 are shown below. 
 
 
 (In millions) Unrealized Net Gains on Derivative Instruments Foreign Currency Translation Adjustments Other Total 
 Balances as of December 31, 2020 $ 26 $ 8 $ — $ 34 
 Other comprehensive loss before reclassifications ( 12 ) ( 44 ) ( 1 ) ( 57 ) 
 Amounts reclassified from accumulated other comprehensive income 59 — — 59 
 Total other comprehensive income (loss), net of tax 47 ( 44 ) ( 1 ) 2 
 Balances as of December 31, 2021 $ 73 $ ( 36 ) $ ( 1 ) $ 36 
 
 
 
 
 
 
 
 
 Other comprehensive income before reclassifications 9 35 — 44 
 Amounts reclassified from accumulated other comprehensive income 12 — — 12 
 Total other comprehensive income , net of tax 21 35 — 56 
 Balances as of December 31, 2022 $ 94 $ ( 1 ) $ ( 1 ) $ 92 

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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Note 9. Accrued Other Liabilities 
 Accrued other liabilities consisted of the following: 
 
 December 31, 
 (In millions) 2022 2021 
 Contract and contract related liabilities (See Note 13) 
 $ 747 $ 614 
 Accrued payroll and other related liabilities 283 377 
 Self-insurance claims and reserves (See Note 11) 
 203 221 
 Accrued taxes 195 183 
 Operating lease liability 50 49 
 Disputed claims liability 26 50 
 Accrued marketing 20 159 
 Exit cost accrual 13 12 
 Other accruals 391 308 
 Total accrued other liabilities $ 1,928 $ 1,973 

 Disputed Claims Liability and Exit Cost Accrual 
 The disputed claims liability and exit cost accrual were assumed liabilities of Former Caesars. The disputed claims liability represents certain remaining unsecured claims related to Former Caesars bankruptcy for which we have estimated the fair value of the remaining liability. Exit costs are related to the unbundling of electric service provided by NV Energy which we assumed from the Merger. 
 
 Note 10. Leases 
 The Company has operating and finance leases for various real estate and equipment. Certain of the Company’s lease agreements include rental payments based on a percentage of sales over specified contractual amounts, rental payments adjusted periodically for inflation and rental payments based on usage. The Company’s leases include options to extend the lease term one month to 75 years. The Company’s lease agreements do not contain any material restrictive covenants, other than those described below. 
 Lessee Arrangements 
 Operating Leases 
 We lease real estate and equipment used in our operations from third parties. As of December 31, 2022, the remaining term of our operating leases ranged from 1 to 69 years with various extension options available, if we elect to exercise them. However, our remaining terms only include extension options that we have determined are reasonably certain as of December 31, 2022. In addition to minimum rental commitments, certain of our operating leases provide for contingent rentals based on a percentage of revenues in excess of specified amounts. We do not include costs associated with our non-lease components in our lease costs disclosed in the table below. During the years ended December 31, 2022 and 2021, we obtained $ 43 million and $ 13 million, respectively, of right-of-use (“ROU”) assets in exchange for new lease liabilities. During the year ended December 31, 2022, we disposed of $ 12 million of ROU assets and lease liabilities. 
 Leases recorded on the balance sheet consist of the following: 
 
 December 31, 
 (In millions) Classification on the Balance Sheet 2022 2021 
 Assets: 
 Operating lease ROU assets (a) 
 Other assets, net $ 639 $ 662 
 
 Liabilities: 
 Current operating lease liabilities (a) 
 Accrued other liabilities 50 49 
 
 Non-current operating lease liabilities (a) 
 Other long-term liabilities 710 726 
 

 ___________________ 
 (a) As noted above, we have elected the short-term lease measurement and recognition exemption and do not establish ROU assets or liabilities for operating leases with terms of 12 months or less. 
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 85 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 Lease Terms and Discount Rate December 31, 
 2022 2021 
 Weighted Average Remaining Lease Term (in years) 32.2 28.8 
 
 
 Weighted Average Discount Rate 8.3 % 8.1 % 
 
 

 
 
 Components of Lease Expense 
 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 Operating lease expense $ 132 $ 128 $ 53 
 Short-term and variable lease expense 138 104 50 
 Total operating lease costs $ 270 $ 232 $ 103 

 
 Supplemental cash flow information related to leases is as follows: 
 
 Cash payments included in the measurement of lease liabilities 
 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 
 Operating cash flows for operating leases $ 110 $ 96 49 
 

 
 Maturities of Lease Liabilities 
 (In millions) Operating Leases 
 
 2023 $ 109 
 2024 75 
 2025 73 
 2026 71 
 2027 72 
 Thereafter 1,975 
 Total future minimum lease payments 2,375 
 Less: present value factor ( 1,615 ) 
 Total lease liability $ 760 

 
 Finance Leases 
 We have finance leases for certain equipment and real estate. As of December 31, 2022, our finance leases had remaining lease terms of up to approximately 36 years, some of which include options to extend the lease terms in one month increments. Our finance lease ROU assets and liabilities were $ 73 million and $ 78 million as of December 31, 2022, respectively, and $ 40 million and $ 43 million as of December 31, 2021, respectively. 
 Financing Obligations 
 VICI Leases & Golf Course Use Agreement 
 The fair value of the real estate assets and the related failed sale-leaseback financing obligations were estimated based on the present value of the estimated future lease payments over the lease term of 15 years, plus renewal options, using an imputed discount rate of approximately 11.01 %. 
 CEI leases certain real property assets from VICI under the following agreements: (i) for a portfolio of properties located throughout the United States (the “Regional Lease”), (ii) for Caesars Palace Las Vegas and Harrah’s Las Vegas (the “Las Vegas Lease”), and (iii) for Harrah’s Joliet Hotel & Casino (the “Joliet Lease”), (collectively, “VICI Leases”). The lease agreements, inclusive of all amendments, include (i) a 15-year initial term with four five-year renewal options, (ii) annual fixed rent payments of $ 1.1 billion, subject to annual escalation provisions based on the Consumer Price Index (“CPI”) and a 2 % floor which commenced in lease year two of the initial terms and (iii) a variable element based on net revenues of the underlying leased properties, commencing in lease year eight of the initial term. 
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 86 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 The Regional Lease includes a put-call option whereby the Company may require VICI to purchase and lease back (as lessor) or whereby VICI may require the Company to sell to VICI and lease back (as lessee) the real estate components of the gaming and racetrack facilities of Harrah’s Hoosier Park Racing & Casino and Indiana Grand (“Centaur properties”). Election to exercise the option by either party must be made during the election period beginning January 1, 2022 and ending December 31, 2024. Upon either party exercising their option, the Centaur properties would be sold at a price in accordance with the agreement and leased back to CEI in accordance to the pre-existing terms of the Regional Lease. 
 The Golf Course Use Agreement between the Company and VICI, encompassing four golf courses in three states, has a 35-year term (inclusive of all renewal periods), whereby the Company agrees to pay (i) an annual membership fee of $ 11 million, subject to annual escalation provisions based on the CPI and a 2 % floor (ii) annual use fees of $ 3 million, including escalation provisions based on the CPI and a 2 % floor commencing on the second lease year through and including the final lease year and (iii) certain per-round fees, as set forth in the agreement. Furthermore, the term of the Golf Course Use Agreement was extended such that there will be 15 years remaining until the expiration of the initial term. 
 GLPI Leases 
 The fair value of the real estate assets and the related failed sale-leaseback financing obligations were estimated based on the present value of the estimated future lease payments over the lease term of 35 years, including renewal options, using an imputed discount rate of approximately 9.75 %. The value of the failed sale-leaseback financing obligations is dependent upon assumptions regarding the amount of the lease payments and the estimated discount rate of the lease payments required by a market participant. 
 CEI leases certain real property assets from GLPI under the Master Lease (as amended, the “GLPI Master Lease”). The GLPI Master Lease, encompassing a portfolio of properties within the United States, provides for the lease of land, buildings, structures and other improvements on the land, easements and similar appurtenances to the land and improvements relating to the operation of the leased properties. The GLPI Master Lease, inclusive of all amendments, provides for (i) an initial term of 20 years (through September 2038), with four five-year renewals at the Company’s option, (ii) annual land and building base rent of $ 24 million and $ 63 million, respectively, (iii) escalating provisions of building base rent equal to 101.25 % of the rent for the preceding year for lease years five and six , 101.75 % for lease years seven and eight and 102 % for each lease year thereafter and (iv) relief from the operating, capital expenditure and financial covenants in the event of involuntary closures. The GLPI Master Lease does not provide the Company with an option to purchase the leased property or the ability to terminate its obligations under the GLPI Master Lease prior to its expiration without GLPI’s consent. 
 The Lumière Lease was entered into by the Company and GLPI, whereby the Company sold the real estate underlying Horseshoe St. Louis, formerly known as Lumière, to GLPI and leased back the property under a long-term financing obligation. The Lumière Lease, inclusive of all amendments, provides for (i) an initial term commencing on September 29, 2020 and ending on October 31, 2033, (ii) four five-year renewal options, (iii) annual rent payments of $ 23 million, (iv) escalation provisions commencing in lease year two equal to 101.25 % of the rent for the preceding year for lease years two through five , 101.75 % for lease years six and seven and 102 % for each lease year thereafter, (v) maintaining a minimum of 1.20 :1 adjusted revenue to rent ratio and (vi) certain relief under the financial covenant in the event of involuntary closures. 
 The Company continues to reflect the real estate assets related to the failed sale-lease back transactions on the Balance Sheets in Property and equipment, net as if the Company was the legal owner, and continues to recognize depreciation expense over their estimated useful lives. 
 The future minimum payments related to the GLPI Leases, including the Lumière Lease, and VICI Leases financing obligation, as amended, at December 31, 2022 were as follows: 
 
 (In millions) GLPI Leases VICI Leases 
 2023 $ 111 $ 1,166 
 2024 112 1,188 
 2025 113 1,204 
 2026 115 1,221 
 2027 117 1,242 
 Thereafter 4,487 44,616 
 Total future payments 5,055 50,637 
 Less: Amounts representing interest ( 4,050 ) ( 40,236 ) 
 Plus: Residual values 240 893 
 Financing obligation $ 1,245 $ 11,294 

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 87 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Cash payments made relating to our long-term financing obligations during the years ended December 31, 2022, 2021 and 2020 were as follows: 
 
 GLPI Leases (a) 
 VICI Leases (a) 
 
 December 31, December 31, 
 (In millions) 2022 2021 2020 2022 2021 2020 
 Cash paid for principal $ — $ — $ — $ 1 $ 1 $ 49 
 Cash paid for interest 110 109 93 1,095 983 472 

 ____________________ 
 (a) For the initial periods of the VICI and GLPI Leases, cash payments are less than the interest expense recognized, which causes the failed-sale leaseback obligation to increase during the initial years of the lease term. 
 Lease Covenants 
 The GLPI Leases and VICI Leases contain certain covenants requiring minimum capital expenditures based on a percentage of net revenues along with maintaining certain financial ratios. The Company was in compliance with all applicable covenants as of December 31, 2022. 
 Lessor Arrangements 
 Lodging Arrangements 
 Lodging arrangements are considered short-term and generally consist of lease and nonlease components. The lease component is the predominant component of the arrangement and consists of the fees charged for lodging. The nonlease components primarily consist of resort fees and other miscellaneous items. As the timing and pattern of transfer of both the lease and nonlease components are over the course of the lease term, we have elected to combine the revenue generated from lease and nonlease components into a single lease component based on the predominant component in the arrangement. During the years ended December 31, 2022, 2021 and 2020, we recognized $ 2.0 billion, $ 1.6 billion and $ 450 million, respectively, in lease revenue related to lodging arrangements, which is included in Hotel revenues in the Statements of Operations. 
 Conventions 
 Convention arrangements are considered short-term and generally consist of lease and nonlease components. The lease component is the predominant component of the arrangement and consists of fees charged for the use of meeting space. The nonlease components primarily consist of food and beverage and audio/visual services. Revenue from conventions is included in Other revenue in the Statement of Operations, and during the years ended December 31, 2022, 2021 and 2020, we recognized $ 34 million, $ 7 million and $ 3 million, respectively, in lease revenue related to conventions. 
 Real Estate Operating Leases 
 We enter into long-term real estate leasing arrangements with third-party lessees at our properties. As of December 31, 2022, the remaining terms of these operating leases ranged from 1 to 83 years, some of which include options to extend the lease term for up to five years . In addition to minimum rental commitments, certain of our operating leases provide for contingent payments including contingent rentals based on a percentage of revenues in excess of specified amounts and reimbursements for common area maintenance and utilities charges. As the timing and pattern of transfer of both the lease and nonlease components are over the course of the lease term, we have elected to combine the revenue generated from lease and nonlease components into a single lease component based on the predominant component in the arrangement. In addition, to maintain the value of our leased assets, certain leases include specific maintenance requirements of the lessees or maintenance is performed by the Company on behalf of the lessees. During the years ended December 31, 2022, 2021 and 2020, we recognized $ 168 million, $ 149 million and $ 41 million, respectively, of real estate lease revenue, which is included in Other revenue in the Statement of Operations. Real estate lease revenue includes $ 64 million, $ 45 million and $ 13 million, respectively, of variable rental income for the years ended December 31, 2022, 2021 and 2020. 
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 88 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 Maturities of Lease Receivables 
 
 (In millions) Operating Leases 
 2023 $ 73 
 2024 66 
 2025 60 
 2026 58 
 2027 52 
 Thereafter 703 
 Total $ 1,012 

 
 
 Note 11. Litigation, Commitments and Contingencies 
 Litigation 
 General 
 We are a party to various legal proceedings, which have arisen in the normal course of our business. Such proceedings can be costly, time consuming and unpredictable and, therefore, no assurance can be given that the final outcome of such proceedings will not materially impact our consolidated financial condition or results of operations. Estimated losses are accrued for these proceedings when the loss is probable and can be estimated. While we maintain insurance coverage that we believe is adequate to mitigate the risks of such proceedings, no assurance can be given that the amount or scope of existing insurance coverage will be sufficient to cover losses arising from such matters. The current liability for the estimated losses associated with these proceedings is not material to our consolidated financial condition and those estimated losses are not expected to have a material impact on our results of operations. 
 COVID-19 Insurance Claims 
 The COVID-19 public health emergency had a significant impact on the Company’s business and employees, as well as the communities where the Company operates and serves. The Company purchased broad property insurance coverage to protect against “all risk of physical loss or damage” and resulting business interruption, unless specifically excluded by policies. The Company submitted claims for losses incurred as a result of the COVID-19 public health emergency which exceed $ 2 billion. The insurance carriers under the Company’s insurance policies have asserted that the policies do not cover losses incurred by the Company as a result of the COVID-19 public health emergency and have refused to make payments under the applicable policies. Therefore, on March 19, 2021, the Company filed a lawsuit against its insurance carriers in the state court in Clark County, Nevada. On June 8, 2021, the Company filed an amended complaint. Litigation is proceeding and there can be no assurance as to the outcome of the litigation. 
 Contractual Commitments 
 Capital Commitments 
 Harrah’s New Orleans 
 In April 2020, the Company and the State of Louisiana, by and through the Louisiana Gaming Control Board, entered into an Amended and Restated Casino Operating Contract. Additionally, the Company, New Orleans Building Corporation and the City entered into a Second Amended and Restated Lease Agreement. Based on these amendments related to Harrah’s New Orleans, the Company is required to make a capital investment of $ 325 million on or around Harrah’s New Orleans by July 15, 2024. The capital investment will include a renovation and full interior and exterior redesign, updated casino floor, new culinary experiences and a new 340 room hotel tower as part of the project to rebrand the property to Caesars New Orleans. As of December 31, 2022, total capital expenditures on the project have been $ 112 million. 
 Atlantic City 
 As required by the New Jersey Gaming Control Board in connection with its approval of the Merger, we funded $ 400 million in escrow to provide funds for a three year capital expenditure plan in the state of New Jersey. This amount is currently included in restricted cash in Other assets, net. As of December 31, 2022 and 2021, our restricted cash balance in the escrow account was $ 118 million and $ 297 million, respectively, for future capital expenditures in New Jersey. 
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 89 

 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Sports Sponsorship/Partnership Obligations 
 We have agreements with certain professional sports leagues and teams, sporting event facilities and media companies for tickets, suites, and advertising, marketing, promotional and sponsorship opportunities including communication with partner customer databases. Additionally, a selection of such partnerships provide Caesars with exclusivity to access the aforementioned rights within the casino and/or sports betting category. In connection with the launch of the Caesars Sportsbook app, we entered into a significant marketing campaign with distinguished actors, former athletes and other media personalities. As of December 31, 2022 and 2021 , obligations related to these agreements were $ 898 million and $ 997 million, respectively, which include obligations assumed in the William Hill Acquisition, with contracts extending through 2040. These obligations include leasing of event suites that are generally considered short term leases for which we do not record a right of use asset or lease liability. We recognize expenses in the period services are received in accordance with the various agreements. In addition, assets or liabilities may be recorded related to the timing of payments as required by the respective agreement. 
 Self-Insurance 
 We are self-insured for workers compensation and other risk insurance, as well as health insurance and general liability. Our total estimated self-insurance liability was $ 203 million and $ 221 million as of December 31, 2022 and 2021, respectively, which is included in Accrued other liabilities on our Balance Sheets. 
 The assumptions utilized by our actuaries are subject to significant uncertainty and if outcomes differ from these assumptions or events develop or progress in a negative manner, the Company could experience a material adverse effect and additional liabilities may be recorded in the future. 
 Contingencies 
 Weather Disruption - Lake Charles 
 On August 27, 2020 , Hurricane Laura made landfall on Lake Charles as a Category 4 storm severely damaging the Isle of Capri Casino Lake Charles (“Lake Charles”). During the year ended December 31, 2022, the Company reached a final settlement agreement with the insurance carriers for a total amount of $ 128 million, before our insurance deductible of $ 25 million. The Company has received a total of $ 103 million related to damaged fixed assets, remediation costs and business interruption. 
 The Company recorded gains of $ 38 million and $ 21 million during the years ended December 31, 2022 and 2021 , respectively, which are included in Transaction and other costs, net in our Statements of Operations, as proceeds received for the cost to replace damaged property were in excess of respective carrying value of the assets. The construction of our new land-based casino, Horseshoe Lake Charles, was completed and reopened in December 2022. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Note 12. Long-Term Debt 
 
 December 31, 2022 December 31, 2021 
 (Dollars in millions) Final Maturity Rates Face Value Book Value Book Value 
 Secured Debt 
 
 Baltimore Revolving Credit Facility 2023 variable $ — $ — $ — 
 Baltimore Term Loan 2024 variable 267 262 275 
 CRC Term Loan (a) 
 2024 variable 3,415 3,243 4,190 
 CRC Incremental Term Loan (a) 
 2025 variable 1,004 972 1,705 
 CEI Revolving Credit Facility 2028 variable — — — 
 CEI Term Loan A 2028 variable 750 747 — 
 CRC Senior Secured Notes 2025 5.75 % 989 979 985 
 CEI Senior Secured Notes 2025 6.25 % 3,400 3,360 3,346 
 Convention Center Mortgage Loan 2025 8.01 % 400 400 399 
 Unsecured Debt 
 CEI Senior Notes due 2027 
 2027 8.125 % 1,611 1,589 1,673 
 CEI Senior Notes due 2029 
 2029 4.625 % 1,200 1,186 1,183 
 Special Improvement District Bonds 2037 4.30 % 47 47 49 
 Long-term notes and other payables 2 2 2 
 Total debt 13,085 12,787 13,807 
 Current portion of long-term debt ( 108 ) ( 108 ) ( 70 ) 
 Deferred finance charges associated with the CEI Revolving Credit Facility 
 — ( 20 ) ( 15 ) 
 Long-term debt $ 12,977 $ 12,659 $ 13,722 
 
 Unamortized discounts and deferred finance charges $ 318 $ 531 
 Fair value $ 12,675 

 ____________________ 
 (a) Refer to “Subsequent Amendment to the CEI Credit Agreement and issuance of New Senior Secured Notes” for a discussion of the repayment of these term loans. 
 
 Annual Estimated Debt Service Requirements 
 Years Ended December 31, 
 (In millions) 2023 2024 (a) 
 2025 (a) 
 2026 2027 Thereafter (a) 
 Total 
 Annual maturities of long-term debt $ 108 $ 3,690 $ 5,797 $ 40 $ 1,651 $ 1,799 $ 13,085 
 Estimated interest payments 920 830 560 220 220 120 2,870 
 Total debt service obligation (b) 
 $ 1,028 $ 4,520 $ 6,357 $ 260 $ 1,871 $ 1,919 $ 15,955 

 ____________________ 
 (a) Maturities of $ 3.4 billion in 2024 and $ 1.0 billion in 2025 were repaid with the net proceeds of the $ 2.5 billion CEI Term Loan B and the $ 2.0 billion CEI Senior Secured Notes, due 2030. See “Subsequent Amendment to the CEI Credit Agreement and issuance of New Senior Secured Notes” below. 
 (b) Debt principal payments are estimated amounts based on contractual maturity and scheduled repayment dates. Interest payments are estimated based on the forward-looking LIBOR and SOFR curve, where applicable. Actual payments may differ from these estimates. 
 Current Portion of Long-Term Debt 
 The current portion of long-term debt as of December 31, 2022 includes the principal payments on the term loans, other unsecured borrowings, and special improvement district bonds that are contractually due within 12 months. The Company may, from time to time, seek to repurchase its outstanding indebtedness. Any such purchases may be funded by existing cash balances or the incurrence of debt. The amount and timing of any repurchase will be based on business and market conditions, capital availability, compliance with debt covenants and other considerations. 
 Debt Discounts or Premiums and Deferred Finance Charges 
 Debt discounts or premiums and deferred finance charges incurred in connection with the issuance of debt are amortized to interest expense based on the related debt agreements primarily using the effective interest method. Unamortized discounts are written off and included in our gain or loss calculations to the extent we extinguish debt prior to the original maturity or payment dates. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Net amortization of the debt issuance costs and the discount and/or premium associated with the Company’s indebtedness totaled $ 139 million, $ 177 million and $ 80 million for the years ended December 31, 2022, 2021 and 2020, respectively. Amortization of debt issuance costs is computed using the effective interest method and is included in interest expense. 
 Fair Value 
 The fair value of debt has been calculated primarily based on the borrowing rates available as of December 31, 2022 and based on market quotes of our publicly traded debt. We classify the fair value of debt within Level 1 and Level 2 in the fair value hierarchy. 
 Terms of Outstanding Debt 
 Baltimore Term Loan and Baltimore Revolving Credit Facility 
 As a result of the increased ownership interest in Horseshoe Baltimore, the Company began to consolidate the aggregate principal amount of Horseshoe Baltimore’s senior secured term loan facility (the “Baltimore Term Loan”) and amount outstanding, if any, under Horseshoe Baltimore’s senior secured revolving credit facility (the “Baltimore Revolving Credit Facility”). The Baltimore Term Loan matures in July 2024 and is subject to a variable rate of interest calculated as LIBOR plus 4.00 %. The Baltimore Revolving Credit Facility has borrowing capacity of up to $ 10 million, subject to a variable rate of interest calculated as Term SOFR plus 4.00 % subject to one 0.25 % step-down based on senior secured leverage ratio, the ratio of first lien senior secured net debt to adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). On June 24, 2022, the Company entered into an amendment related to the Baltimore Revolving Credit Facility to extend the maturity date to July 7, 2023. As of December 31, 2022, there was $ 10 million of available borrowing capacity under the Baltimore Revolving Credit Facility. On November 14, 2022, the Company made partial prepayment of $ 10 million of the outstanding principal balance of the Baltimore Term Loan. 
 CRC Term Loans and CRC Revolving Credit Facility 
 The CRC Term Loan, the CRC Incremental Term Loan and the CRC Revolving Credit Facility were subject to the terms described below prior to termination or repayment. The CRC Revolving Credit Facility was terminated in October 2022 and on February 6, 2023, the Company repaid the CRC Term Loan and the CRC Incremental Term Loan with proceeds from a new CEI Term Loan B and new CEI Senior Secured Notes, due 2030. See “Subsequent Amendment to the CEI Credit Agreement and issuance of New Senior Secured Notes” below. 
 CRC was party to a credit agreement, dated as of December 22, 2017 (as amended, the “CRC Credit Agreement”), which provided for a $ 1.0 billion five-year revolving credit facility (the “CRC Revolving Credit Facility”), an initial $ 4.7 billion seven-year senior secured term loan (the “CRC Term Loan”), and an incremental $ 1.8 billion five-year senior secured term loan that was incurred in connection with the Merger (the “CRC Incremental Term Loan”). 
 The CRC Term Loan had a maturity date in December 2024 and the CRC Incremental Term Loan had a maturity date in July 2025. The CRC Term Loan and the CRC Incremental Term Loan required scheduled quarterly principal payments in amounts equal to 0.25 % of the original aggregate principal amount, with the balances due at maturity. The CRC Credit Agreement also included customary voluntary and mandatory prepayment provisions, subject to certain exceptions. 
 The CRC Revolving Credit Facility contained a maturity date in December 2022 and included a $ 400 million letter of credit sub-facility. 
 Borrowings under the CRC Credit Agreement were subject to interest at a rate equal to either (a) LIBOR adjusted for certain additional costs, subject to a floor of 0 % or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50 %, (ii) the prime rate as determined by Credit Suisse AG, Cayman Islands Branch, as administrative agent under the CRC Credit Agreement and (iii) the one-month adjusted LIBOR rate plus 1.00 %, in each case plus an applicable margin. Such applicable margin shall be (a) with respect to the CRC Term Loan, 2.75 % per annum in the case of any LIBOR loan or 1.75 % per annum in the case of any base rate loan and (b) with respect to the CRC Incremental Term Loan, 3.50 % per annum in the case of any LIBOR loan or 2.50 % in the case of any base rate loan. The CRC Term Loan and the CRC Incremental Term Loan were LIBOR based loans as of December 31, 2022. 
 During the year ended December 31, 2022, the Company utilized and fully repaid borrowings on the CRC Revolving Credit Facility, prior to its termination. Additionally, the Company made several partial prepayments of outstanding principal of the CRC Term Loan utilizing operating cash flows totaling $ 300 million, excluding the prepayments resulting from the proceeds of the CEI Term Loan A described below, and recognized a related $ 16 million loss on the early extinguishment of debt during the year ended December 31, 2022. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Following the closing of the sale of William Hill International, the Company utilized the proceeds from the sale, as well as cash on hand to make partial prepayments totaling $ 755 million of the outstanding principal of the CRC Incremental Term Loan and recognized a $ 27 million loss on the early extinguishment of debt during the year ended December 31, 2022. 
 On October 5, 2022, in connection with the Third Amendment (as defined below) to the CEI Credit Agreement, the Company utilized the entire proceeds of a new $ 750 million CEI Term Loan A (as defined below) to make a partial prepayment of the outstanding principal of the CRC Term Loan, as well as terminate the CRC Revolving Credit Facility. As a result of the partial prepayment, the Company recognized a $ 41 million loss on the early extinguishment of debt. See below. 
 CEI Term Loan A and CEI Revolving Credit Facility 
 CEI is party to a credit agreement, dated as of July 20, 2020, with JPMorgan Chase Bank, N.A., as administrative agent, U.S. Bank National Association, as collateral agent, and certain banks and other financial institutions and lenders party thereto (the “CEI Credit Agreement”), which provided for a five-year CEI Revolving Credit Facility in an aggregate principal amount of $ 1.2 billion (the “CEI Revolving Credit Facility”). The CEI Revolving Credit Facility contained reserves of $ 190 million which are available only for certain permitted uses. On May 23, 2022, the Company obtained approval for a reduction of $ 150 million in required reserves. Prior to further amendment, described below, the CEI Revolving Credit Facility was scheduled to mature in July 2025 and included a letter of credit sub-facility of $ 250 million. 
 Prior to the Third Amendment (as defined below) of the CEI Credit Agreement on October 5, 2022, the interest rate per annum applicable under the CEI Revolving Credit Facility, at the Company’s option was either (a) LIBOR adjusted for certain additional costs, subject to a floor of 0 % or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50 %, (ii) the rate of interest per annum last quoted by The Wall Street Journal as the “Prime Rate” in the United States and (iii) the one-month adjusted LIBOR rate plus 1.00 %, in each case plus an applicable margin. Such applicable margin was 3.25 % per annum in the case of any LIBOR loan and 2.25 % per annum in the case of any base rate loan, subject to three 0.25 % step-downs based on the Company’s net total leverage ratio. 
 Additionally, prior to the Third Amendment (as defined below) of the CEI Credit Agreement, the Company was required to pay a commitment fee in respect of any unused commitments under the CEI Revolving Credit Facility in the amount of 0.50 % per annum, subject to a step-down to 0.375 % per annum based upon the Company’s net total leverage ratio. The Company was also required to pay customary agency fees as well as letter of credit participation fees computed at a rate per annum equal to the applicable margin for LIBOR borrowings on the dollar equivalent of the daily stated amount of outstanding letters of credit, plus such letter of credit issuer’s customary documentary and processing fees and charges and a fronting fee in an amount equal to 0.125 % per annum of the daily stated amount of such letter of credit. 
 On October 5, 2022, Caesars entered into a third amendment to the CEI Credit Agreement (the “Third Amendment”) pursuant to which the Company (a) incurred a senior secured term loan in an aggregate principal amount of $ 750 million (the “CEI Term Loan A”) as a new term loan under the credit agreement, (b) amended and extended the CEI Revolving Credit Facility under the CEI Credit Agreement (the CEI Revolving Credit Facility, as so amended, the “Amended CEI Revolving Credit Facility” and, together with the CEI Term Loan A, the “Senior Credit Facilities”), (c) increased the aggregate principal amount of the CEI Revolving Credit Facility to $ 2.25 billion, and (d) made certain other amendments to the CEI Credit Agreement. Both the Amended CEI Revolving Credit Facility and the new CEI Term Loan A mature on January 31, 2028, subject to a springing maturity in the event certain other long-term debt of Caesars is not extended or repaid. The Amended CEI Revolving Credit Facility includes a letter of credit sub-facility of $ 388 million. The CEI Term Loan A requires scheduled quarterly payments in amounts equal to 1.25 % of the original aggregate principal amount of the CEI Term Loan A, with the balance payable at maturity. The Company may make voluntary prepayments of the CEI Term Loan A at any time prior to maturity at par. 
 Borrowings under the Senior Credit Facilities bear interest at a rate equal to, at the Company’s option, either (a) a forward-looking term rate based on the secured overnight financing rate (“SOFR”) for the applicable interest period plus an adjustment of 0.10 % per annum (“Adjusted Term SOFR”), subject to a floor of 0 % or (b) a base rate (the “Base Rate”) determined by reference to the highest of (i) the rate of interest per annum last quoted by The Wall Street Journal as the “Prime Rate” in the United States, (ii) the federal funds rate plus 0.50 % per annum and (iii) the one-month Adjusted Term SOFR plus 1.00 % per annum, in each case, plus an applicable margin. Such applicable margin is 2.25 % per annum in the case of any Adjusted Term SOFR loan and 1.25 % per annum in the case of any Base Rate loan, subject to three 0.25 % step-downs based on the Company’s net total leverage ratio. In addition, on a quarterly basis, the Company is required to pay each lender under the Amended CEI Revolving Credit Facility a commitment fee in respect of any unused commitments under the Amended CEI Revolving Credit Facility in the amount of 0.35 % per annum of the principal amount of the unused commitments of such lender, subject to three 0.05 % step-downs based on the Company’s net total leverage ratio. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 As of December 31, 2022, the Company had $ 2.1 billion of available borrowing capacity under the Amended CEI Revolving Credit Facility, after consideration of $ 82 million in outstanding letters of credit, $ 48 million committed for regulatory purposes and the reserves described above. 
 Subsequent Amendment to the CEI Credit Agreement and issuance of New Senior Secured Notes 
 On February 6, 2023, the Company issued $ 2.0 billion in aggregate principal amount of 7.00 % senior secured notes (the “CEI Senior Secured Notes due 2030”) pursuant to an indenture by and among the Company, the subsidiary guarantors party thereto from time to time, U.S. Bank Trust Company, National Association, as trustee, and U.S. Bank National Association, as collateral agent. The CEI Senior Secured Notes due 2030 rank equally with all existing and future first-priority lien obligations of the Company and the subsidiary guarantors. The CEI Senior Secured Notes due 2030 will mature in February 2030, with interest paid semi-annually on February 15 and August 15 of each year, commencing August 15, 2023. 
 Additionally, on February 6, 2023, Caesars entered into an Incremental Assumption Agreement No. 2 pursuant to which the Company incurred a new senior secured term loan facility in an aggregate principal amount of $ 2.5 billion (the “CEI Term Loan B”) as a new term loan under the CEI Credit Agreement. The CEI Term Loan B requires scheduled quarterly amortization payments in amounts equal to 0.25 % of the original aggregate principal amount of the CEI Term Loan B, with the balance payable at maturity. Borrowings under the CEI Term Loan B bear interest at a rate equal to, at the Company’s option, either (a) a forward-looking term rate based on the secured overnight financing rate for the applicable interest period plus an adjustment of 0.10 % per annum (“Adjusted Term SOFR”), subject to a floor of 0.50 % or (b) a base rate (the “Base Rate”) determined by reference to the highest of (i) the rate of interest per annum last quoted by The Wall Street Journal as the “Prime Rate” in the United States, (ii) the federal funds rate plus 0.50 % per annum and (iii) the one-month Adjusted Term SOFR plus 1.00 % per annum, in each case, plus an applicable margin. Such applicable margin is 3.25 % per annum in the case of any Adjusted Term SOFR loan and 2.25 % per annum in the case of any Base Rate loan, subject to one 0.25 % step-down based on the Company’s net total leverage ratio. The CEI Term Loan B was issued at a price of 99.0 % of the principal amount and will mature in February 2030. 
 The net proceeds from the issuance of the CEI Senior Secured Notes due 2030 and the net proceeds from the CEI Term Loan B, were used to repay the outstanding principal balance, including accrued and unpaid interest, of both the CRC Term Loan and the CRC Incremental Term Loan. The remaining net proceeds were to be used to pay related fees, or for general corporate use. Upon the termination of the CRC Term Loan and the CRC Incremental Term Loan, the Company recorded a loss on extinguishment of debt of approximately $ 200 million. 
 CRC Senior Secured Notes due 2025 
 On July 6, 2020, Colt Merger Sub, Inc. (the “Escrow Issuer”) issued $ 1.0 billion in aggregate principal amount of 5.75 % Senior Secured Notes due 2025 pursuant to an indenture, dated July 6, 2020 (the “CRC Senior Secured Notes”), by and among the Escrow Issuer, U.S. Bank National Association, as trustee and Credit Suisse AG, Cayman Islands Branch, as collateral agent. In connection with the consummation of the Merger, CRC assumed the rights and obligations under the CRC Senior Secured Notes and the indenture governing such notes. The CRC Senior Secured Notes rank equally with all existing and future first priority lien obligations of CRC, CRC Finco, Inc. and the subsidiary guarantors. The CRC Senior Secured Notes will mature on July 1, 2025 with interest payable semi-annually in cash in arrears on January 1 and July 1 of each year. During the year ended December 31, 2022, the Company purchased a total of $ 11 million in principal amount of the CRC Senior Secured Notes. 
 CEI Senior Secured Notes due 2025 
 On July 6, 2020, the Escrow Issuer issued $ 3.4 billion in aggregate principal amount of 6.25 % Senior Secured Notes due 2025 pursuant to an indenture dated July 6, 2020 (the “CEI Senior Secured Notes”), by and among the Escrow Issuer, U.S. Bank National Association, as trustee, and U.S. Bank National Association, as collateral agent. The Company assumed the rights and obligations under the CEI Senior Secured Notes and the indenture governing such notes on July 20, 2020. The CEI Senior Secured Notes rank equally with all existing and future first-priority lien obligations of the Company and the subsidiary guarantors. The CEI Senior Secured Notes will mature on July 1, 2025 with interest payable semi-annually in cash in arrears on January 1 and July 1 of each year. 
 Convention Center Mortgage Loan 
 On September 18, 2020, the Company entered into a loan agreement with VICI to borrow a 5-year , $ 400 million Forum Convention Center mortgage loan (the “Mortgage Loan”). The Mortgage Loan bears interest at a rate of, initially, 7.7 % per annum, which escalates annually on the anniversary of the closing date to a maximum interest rate of 8.3 % per annum. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 CEI Senior Notes due 2027 
 On July 6, 2020, the Escrow Issuer issued $ 1.8 billion in aggregate principal amount of 8.125 % Senior Notes due 2027 pursuant to an indenture, dated July 6, 2020 (the “CEI Senior Notes due 2027”), by and between the Escrow Issuer and U.S. Bank National Association, as trustee. The Company assumed the rights and obligations under the CEI Senior Notes due 2027 and the indenture governing such notes on July 20, 2020. The CEI Senior Notes due 2027 rank equally with all existing and future senior unsecured indebtedness of the Company and the subsidiary guarantors. The CEI Senior Notes due 2027 will mature on July 1, 2027 with interest payable semi-annually in cash in arrears on January 1 and July 1 of each year. During the year ended December 31, 2022, the Company purchased a total of $ 89 million in principal amount of the CEI Senior Notes due 2027. 
 CEI Senior Notes due 2029 
 On September 24, 2021, the Company issued $ 1.2 billion in aggregate principal amount of 4.625 % Senior Notes due 2029 (the “CEI Senior Notes due 2029”) pursuant to an indenture dated as of September 24, 2021 between the Company and U.S. Bank National Association, as Trustee. The CEI Senior Notes due 2029 rank equally with all existing and future senior unsecured indebtedness of the Company and the subsidiary guarantors. The CEI Senior Notes due 2029 will mature on October 15, 2029 with interest payable on April 15 and October 15 of each year, which began on April 15, 2022. 
 
 Summary of Debt and Revolving Credit Facility Cash Flows from Financing Activities in 2022 
 
 (In millions) Proceeds Repayments (a) 
 
 
 CRC Revolving Credit Facility $ 750 $ 750 
 CEI Term Loan A 750 — 
 CEI Senior Notes due 2027 — 89 
 CRC Term Loan — 1,097 
 
 CRC Incremental Term Loan — 773 
 CRC Senior Secured Notes — 11 
 
 
 Baltimore Term Loan — 16 
 Special Improvement District Bonds — 2 
 Total $ 1,500 $ 2,738 

 ____________________ 
 (a) Includes contractually scheduled repayments as well as voluntary accelerated repayments. 
 Debt Covenant Compliance 
 The CRC Credit Agreement, the Senior Credit Facilities, the Baltimore Term Loan, the Baltimore Revolving Credit Facility and the indentures governing the CEI Senior Secured Notes, the CEI Senior Notes due 2027, the CEI Senior Notes due 2029, and the CRC Senior Secured Notes contain covenants which are standard and customary for these types of agreements. These include negative covenants, which, subject to certain exceptions and baskets, limit the Company’s and its subsidiaries’ ability to (among other items) incur additional indebtedness, make investments, make restricted payments, including dividends, grant liens, sell assets and make acquisitions. 
 Following the Third Amendment, the Amended CEI Revolving Credit Facility and the CEI Term Loan A include a maximum net total leverage ratio financial covenant of 7.25 :1 until December 31, 2024 and 6.50 :1 from and after December 31, 2024. In addition, the Amended CEI Revolving Credit Facility and the CEI Term Loan A include a minimum fixed charge coverage ratio financial covenant of 1.75 :1 until December 31, 2024 and 2.00 :1 from and after December 31, 2024. From and after the repayment of the CEI Term Loan A, the financial covenants applicable to the Amended CEI Revolving Credit Facility will be tested solely to the extent that certain testing conditions are satisfied. The Baltimore Revolving Credit Facility includes a net senior secured leverage ratio financial covenant of 5.0 :1. Failure to comply with such covenants could result in an acceleration of the maturity of indebtedness outstanding under the relevant debt document. 
 As of December 31, 2022, the Company was in compliance with all of the applicable financial covenants described above. 
 Guarantees 
 The Senior Credit Facilities, the CEI Senior Secured Notes and the CEI Senior Secured Notes are guaranteed on a senior secured basis by each existing and future material wholly-owned domestic subsidiary of the Company (subject to certain exceptions including CRC and its subsidiaries) and are secured by substantially all of the existing and future property and assets of the Company and its subsidiary guarantors (subject to certain exceptions). The CEI Senior Notes due 2027 and the CEI Senior Notes due 2029 are guaranteed on a senior unsecured basis by such subsidiaries. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 The CRC Credit Agreement and the CRC Senior Secured Notes are guaranteed on a senior secured basis by each existing and future material wholly-owned domestic subsidiary of CRC (subject to certain exceptions) and are secured by substantially all of the existing and future property and assets of CRC and its subsidiary guarantors (subject to certain exceptions). The CRC Credit Agreement and the CRC Senior Secured Notes are also guaranteed on a senior unsecured basis by the Company. 
 
 Note 13. Revenue Recognition 
 Accounting Policies 
 Casino Revenues 
 Our casino revenues consists of gaming wagers, pari-mutuel commissions, sports betting and iGaming wagers. The Company recognizes as casino revenue the net win from these gaming activities, which is the difference between gaming wins and losses, not the total amount wagered. Progressive jackpots are accrued and charged to revenue at the time the obligation to pay the jackpot is established. Gaming revenues are recognized net of free bets, free play, matched deposits, and other similar incentives to its customers. During significant promotional periods, such as entering new jurisdictions with our Caesars Sportsbook or Caesars Racebook apps, such activity could result in negative net gaming revenue. Such periods are not expected to be long in duration as our level of investment during these promotional periods is within our discretion. Pari-mutuel commissions consist of commissions earned from thoroughbred and harness racing and importing of simulcast signals from other race tracks and are recognized at the time wagers are made. Such commissions are a designated portion of the wagering handle as determined by state racing commissions and are shown net of the taxes assessed by state and local agencies, as well as purses and other contractual amounts paid to horsemen associations. The Company recognizes revenues from fees earned through the exporting of simulcast signals to other race tracks at the time wagers are made, which are recorded on a gross basis. Such fees are based upon a predetermined percentage of handle as contracted with the other race tracks. 
 Non-gaming Revenues 
 Hotel, food and beverage, and other operating revenues are recognized as services are performed and is the net amount collected from the customer for such goods and services. Hotel, food and beverage services have been determined to be separate, stand-alone performance obligations and are recorded as revenue as the good or service is transferred to the customer over the customer’s stay at the hotel or when the delivery is made for the food and beverage. Advance deposits for future hotel occupancy, convention space or food and beverage services contract are recorded as deferred income until revenue recognition criteria has been met. The Company also provides goods and services that may include multiple performance obligations, such as for packages, for which revenues are allocated on a pro rata basis based on each service’s stand-alone selling price. 
 Sales and other taxes collected from customers on behalf of governmental authorities are accounted for on a net basis and are not included in net revenues or operating expenses. 
 The Company’s Statement of Operations presents net revenue disaggregated by type or nature of the good or service. A summary of net revenues disaggregated by type of revenue and reportable segment is presented below. Refer to Note 1 and Note 19 for additional information on the Company’s reportable segments. 
 
 Year Ended December 31, 2022 
 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total 
 Casino $ 1,247 $ 4,291 $ 462 $ — $ ( 3 ) $ 5,997 
 Food and beverage 1,063 533 — — — 1,596 
 Hotel 1,341 616 — — — 1,957 
 Other 636 264 86 282 3 1,271 
 
 
 Net revenues $ 4,287 $ 5,704 $ 548 $ 282 $ — $ 10,821 

 
 Year Ended December 31, 2021 
 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total 
 Casino $ 1,226 $ 4,305 $ 296 $ — $ — $ 5,827 
 Food and beverage 702 438 — — — 1,140 
 Hotel 968 583 — — — 1,551 
 Other 513 211 41 278 9 1,052 
 Net revenues $ 3,409 $ 5,537 $ 337 $ 278 $ 9 $ 9,570 

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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 Year Ended December 31, 2020 
 (In millions) Las Vegas Regional Caesars Digital Managed and Branded Corporate and Other Total 
 Casino $ 319 $ 2,079 $ 84 $ — $ — $ 2,482 
 Food and beverage 130 211 — 1 — 342 
 Hotel 186 264 — — — 450 
 Other 116 106 11 106 15 354 
 
 
 Net revenues $ 751 $ 2,660 $ 95 $ 107 $ 15 $ 3,628 

 
 Accounts Receivable and Credit Risk 
 We issue credit to approved casino customers following investigations of creditworthiness. Business or economic conditions or other significant events could affect the collectability of these receivables. Accounts receivable are non-interest bearing and are initially recorded at cost. 
 Marker play represents a meaningful portion of our overall table games volume. We maintain strict controls over the issuance of markers and aggressively pursue collection from those customers who fail to pay their marker balances timely. These collection efforts include the mailing of statements and delinquency notices, personal contacts, the use of outside collection agencies and civil litigation. Markers are generally legally enforceable instruments in the United States. Markers are not legally enforceable instruments in some foreign countries, but the United States assets of foreign customers may be reached to satisfy judgments entered in the United States. We consider the likelihood and difficulty of enforceability, among other factors, when we issue credit to customers who are not residents of the United States. 
 Trade receivables, including casino and hotel receivables, are typically non-interest bearing. Accounts are written off when management deems the account to be uncollectible. Recoveries of accounts previously written off are recorded when received. Management believes that as of December 31, 2022 and 2021, no significant concentrations of credit risk related to receivables existed. 
 Reserve for Uncollectible Accounts Receivable 
 An estimated allowance for doubtful accounts is maintained to reduce the Company’s receivables to their carrying amount, which approximates fair value. The allowance is estimated based on specific review of customer accounts, historical collection experience and reasonable forecasts which consider current economic and business conditions. As with many estimates, management must make judgments about potential actions by third parties in establishing and evaluating our reserves for bad debts. 
 
 Accounts Receivable, Net 
 December 31, 
 (In millions) 2022 2021 
 Casino $ 259 $ 168 
 Food and beverage and hotel 144 100 
 Other 208 204 
 Accounts receivable, net $ 611 $ 472 

 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 Allowance for Doubtful Accounts 
 (In millions) Contracts Other (a) 
 Total 
 Balance as of January 1, 2020 
 $ 4 $ 1 $ 5 
 Former Caesars consolidation 95 35 130 
 Provision for doubtful accounts 18 11 29 
 Write-offs less recoveries 3 ( 29 ) ( 26 ) 
 Balance as of December 31, 2020 
 120 18 138 
 Provision for doubtful accounts 16 10 26 
 Write-offs less recoveries ( 26 ) ( 8 ) ( 34 ) 
 Balance as of December 31, 2021 
 110 20 130 
 Provision for doubtful accounts 13 12 25 
 Write-offs less recoveries ( 22 ) ( 15 ) ( 37 ) 
 Balance as of December 31, 2022 
 $ 101 $ 17 $ 118 

 ____________________ 
 (a) “Other” includes allowance associated with lease receivables under ASC 842. See Note 10 for further details. 
 Contract and Contract Related Liabilities 
 The Company records contract or contract-related liabilities related to differences between the timing of cash receipts from the customer and the recognition of revenue. The Company generally has three types of liabilities related to contracts with customers: (1) outstanding chip liability, which represents the amounts owed in exchange for gaming chips held by a customer,(2) Caesars Rewards player loyalty program obligations, which represent the deferred allocation of revenue relating to reward credits granted to Caesars Rewards members based on certain types of customer spend, including online and retail gaming, hotel, dining, retail shopping, and player loyalty program incentives earned, and (3) customer deposits and other deferred revenue, which primarily represents funds deposited by customers related to gaming play, advance payments received for goods and services yet to be provided (such as advance ticket sales, deposits on rooms and convention space, unpaid wagers, iGaming deposits, or future sports bets). These liabilities are generally expected to be recognized as revenue within one year of being purchased, earned, or deposited and are recorded within accrued other liabilities on the Company’s Balance Sheets. Liabilities expected to be recognized as revenue beyond one year of being purchased, earned, or deposited are recorded within other long-term liabilities on the Company’s Balance Sheets. 
 Outstanding Chip Liability 
 The Company recognizes the impact on gaming revenues on an annual basis to reflect an estimate of the change in the value of outstanding chips that are not expected to be redeemed. This estimate is determined by measuring the difference between the total value of chips placed in service less the value of chips under our control. This measurement is performed on an annual basis utilizing a methodology in which a consistent formula is applied to estimate the percentage of chips not in our custody that are not expected to be redeemed. In addition to the formula, certain judgments are made with regard to various denominations and souvenir chips. The outstanding chip liability is included in accrued other liabilities on the Balance Sheets. 
 Caesars Rewards Loyalty Program 
 Caesars Rewards grants Reward Credits to Caesars Rewards Members based on various types of consumer spend, including online and retail gaming, hotel, dining, and retail shopping at Caesars-affiliated properties. Members may redeem Reward Credits for complimentary or discounted goods and services such as rooms, food and beverages, merchandise, free play, entertainment, and travel accommodations. Members are able to accumulate Reward Credits over time that they may redeem at their discretion under the terms of the program. A member’s Reward Credit balance is forfeited if the member does not earn at least one Reward Credit during a continuous six-month period. 
 Because of the significance of the Caesars Rewards program and the ability for customers to accumulate Reward Credits based on their past play, we have determined that Reward Credits granted in conjunction with other earning activity represent a performance obligation. As a result, for transactions in which Reward Credits are earned, we allocate a portion of the transaction price to the Reward Credits that are earned based upon the relative standalone selling prices (“SSP”) of the goods and services involved. When the activity underlying the “earning” of the Reward Credits has a wide range of selling prices and is highly variable, such as in the case of gaming activities, we use the residual approach in this allocation by computing the value of the Reward Credits as described below and allocating the residual amount to the gaming activity. This allocation results in a significant portion of the transaction price being deferred and presented as a Contract liability on our accompanying Balance Sheets. Any amounts allocated to Contract liabilities are recognized as revenue when the Reward Credits are redeemed in accordance with the specific recognition policy of the activity for which the credits are redeemed. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Our Caesars Rewards loyalty program includes various tiers that offer different benefits, and members are able to earn credits towards tier status, which generally enables them to receive discounts similar to those provided as complimentaries described below. We have determined that any such discounts received as a result of tier status do not represent material rights, and therefore, we do not account for them as distinct performance obligations. 
 We have determined the SSP of a Reward Credit by computing the redemption value of credits expected to be redeemed. Because Reward Credits are not otherwise independently sold, we analyzed all Reward Credit redemption activity over the preceding calendar year and determined the redemption value based on the fair market value of the goods and services for which the Reward Credits were redeemed. We have applied the practical expedient under the portfolio approach to our Reward Credit transactions because of the similarity of gaming and other transactions and the homogeneity of Reward Credits. 
 As part of determining the SSP for Reward Credits, we also determined that there is generally an amount of Reward Credits that is not redeemed, which is considered “breakage.” We recognize the expected breakage proportionally with the pattern of revenue recognized related to the redemption of Reward Credits. We periodically reassess our customer behaviors and revise our expectations as deemed necessary on a prospective basis. 
 The following table summarizes the activity related to contract and contract-related liabilities: 
 
 Outstanding Chip Liability Caesars Rewards Customer Deposits and Other Deferred Revenue 
 (In millions) 2022 2021 2022 2021 2022 2021 
 Balance at January 1 $ 48 $ 34 $ 91 $ 94 $ 560 $ 310 
 Balance at December 31 45 48 87 91 693 560 
 Increase (decrease) $ ( 3 ) $ 14 $ ( 4 ) $ ( 3 ) $ 133 $ 250 

 The table above excludes liabilities related to assets held for sale as of December 31, 2021 (see Note 4). Customer deposits and other deferred revenues have increased primarily due to our expansion in the Caesars Digital segment with the legalization of retail and online sports betting in new states. 
 Complimentaries 
 The Company offers discretionary coupons and other discretionary complimentaries to customers outside of the loyalty program such as matching deposits, free bets and free play. Such complimentaries are provided in conjunction with other revenue‑earning activities and are generally provided to encourage additional customer spending on those activities. Accordingly, the Company allocates a portion of the transaction price received from such customers to the complimentary goods and services. The Company performs this allocation based on the SSP of the underlying goods and services, which is determined based upon the weighted-average cash sales prices received for similar services at similar points during the year. The retail value of complimentary food, beverage, hotel rooms and other services provided to customers is recognized as a reduction of revenues for the department which issued the complimentary and revenue for the department redeemed. Complimentaries provided by third parties at the discretion and under the control of the Company is recorded as an expense when incurred. 
 The Company’s revenues included complimentaries and loyalty point redemptions totaling $ 1.2 billion, $ 1.0 billion and $ 406 million for the years ended December 31, 2022, 2021 and 2020, respectively. 
 
 Note 14. Earnings per Share 
 Basic earnings per share (“EPS”) is computed by dividing net income (loss) by the weighted average shares outstanding during the reporting period. Diluted EPS is computed similarly to basic EPS except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of stock options and the assumed vesting of restricted share units, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options were exercised, that outstanding restricted share units were released and that the proceeds from such activities were used to acquire shares of common stock at the average market price during the reporting period. 
 For a period in which the Company generated a net loss from continuing operations, the weighted average shares outstanding - basic was used in calculating diluted loss per share because using diluted shares would have been anti-dilutive to loss per share. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 The following table illustrates the required disclosure of the reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share computations during the years ended December 31, 2022, 2021 and 2020: 
 
 Years Ended December 31, 
 (In millions, except per share amounts) 2022 2021 2020 
 Net loss from continuing operations attributable to Caesars, net of income taxes $ ( 513 ) $ ( 989 ) $ ( 1,737 ) 
 Discontinued operations, net of income taxes ( 386 ) ( 30 ) ( 20 ) 
 Net loss attributable to Caesars $ ( 899 ) $ ( 1,019 ) $ ( 1,757 ) 
 Shares outstanding: 
 Weighted average shares outstanding – basic 214 211 130 
 Effect of dilutive securities: 
 Stock-based compensation awards — — — 
 Weighted average shares outstanding – diluted 214 211 130 
 
 Basic loss per share from continuing operations $ ( 2.39 ) $ ( 4.69 ) $ ( 13.35 ) 
 Basic loss per share from discontinued operations ( 1.80 ) ( 0.14 ) ( 0.15 ) 
 Net loss per common share attributable to common stockholders – basic: $ ( 4.19 ) $ ( 4.83 ) $ ( 13.50 ) 
 
 Diluted loss per share from continuing operations $ ( 2.39 ) $ ( 4.69 ) $ ( 13.35 ) 
 Diluted loss per share from discontinued operations ( 1.80 ) ( 0.14 ) ( 0.15 ) 
 Net loss per common share attributable to common stockholders – diluted: $ ( 4.19 ) $ ( 4.83 ) $ ( 13.50 ) 

 
 Weighted-Average Number of Anti-Dilutive Shares Excluded from Calculation of EPS 
 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 
 Stock-based compensation awards 3 3 9 
 
 5% Convertible notes — — 4 
 Total anti-dilutive common stock 3 3 13 

 
 
 Note 15. Stock-Based Compensation and Stockholders’ Equity 
 Stock-Based Awards 
 The Company maintains long-term incentive plans which allow for granting stock-based compensation awards for directors, employees, officers, and consultants or advisers who render services to the Company or its subsidiaries, based on Company Common Stock, including stock options, restricted stock, restricted stock units (“RSUs”), performance stock units (“PSUs”), market-based performance stock units (“MSUs”), stock appreciation rights, and other stock-based awards or dividend equivalents. Forfeitures are recognized in the period in which they occur. 
 Performance Incentive Plans 
 In 2015, the Board of Directors (“Board”) adopted, and the Company’s stockholders approved, the 2015 Equity Incentive Plan (“2015 Plan”). In 2019, the Company’s Board approved, and the Company’s stockholders approved, the amended and restated 2015 Plan. The amendment to the 2015 Plan allows for 3 million shares available for grant, plus the number of shares available for issuance under the 2015 Plan on the date the Company’s stockholders approved the amendment. As of December 31, 2022, the Company had 5 million shares available for grant under the 2015 Plan. 
 Equity awards granted to employees and executive officers generally vest within one to three years from the grant date either ratably on each anniversary, or entirely at the end of the service period. Awards may also contain performance conditions in addition to time based vesting conditions. Performance awards relate to the achievement of defined levels of performance and will vest and become payable at the end of the vesting period. Performance awards may contain targeted performance levels, which may ultimately vest within a range of 0 % to 200 % of the target award, based on defined operating metrics or market performance as compared to a peer group. RSUs granted to non-employee directors generally vest immediately and are issued on the vesting date, or may be deferred. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Total stock-based compensation expense in the accompanying Statements of Operations was $ 101 million, $ 82 million and $ 79 million during the years ended December 31, 2022, 2021 and 2020, respectively. These amounts are included in corporate expenses and, in the case of certain property positions, general and administrative expenses in the Company’s Statements of Operations. 
 Restricted Stock Unit Activity 
 During the year ended December 31, 2022, as part of the annual incentive program, the Company granted RSUs to employees of the Company with an aggregate fair value of $ 56 million. Each RSU represents the right to receive payment in respect of one share of the Company’s Common Stock. 
 A summary of the RSUs activity for the year ended December 31, 2022 is presented in the following table: 
 
 Units Weighted Average Grant Date Fair Value (a) 
 
 Unvested outstanding as of December 31, 2021 
 2,090,607 $ 61.47 
 Granted (b) 
 773,778 70.58 
 Vested ( 907,764 ) 55.88 
 Forfeited ( 93,140 ) 67.12 
 Unvested outstanding as of December 31, 2022 
 1,863,481 66.87 

 ____________________ 
 (a) Represents the weighted-average grant date fair value of RSUs, which is the share price of our common stock on the grant date. 
 (b) Included are 23,956 RSUs granted to non-employee members of the Board during the year ended December 31, 2022. 
 Performance Stock Unit Activity 
 During the year ended December 31, 2022, the Company granted approximately 80 thousand PSUs that are scheduled to vest over a period of one to three years from the grant date. On the vesting date, recipients will receive between 0 % and 200 % of the target number of PSUs granted, in the form of Company Common Stock, based on the achievement of specified performance conditions. The fair value of the PSUs is based on the market price of our common stock when a mutual understanding of the key terms and conditions of the awards between the Company and recipient is achieved. The awards are remeasured each period until such an understanding is reached. The aggregate value of PSUs granted during the year was $ 3 million as of December 31, 2022. 
 A summary of the PSUs activity for the year ended December 31, 2022 is presented in the following table: 
 
 Units Weighted Average Grant Date Fair Value (a) 
 
 Unvested outstanding as of December 31, 2021 
 417,069 $ 62.20 
 Granted 80,420 41.60 
 Performance Adjustment 80,030 
 Vested ( 191,279 ) 45.39 
 Forfeited ( 3,083 ) 53.60 
 Unvested outstanding as of December 31, 2022 
 383,157 51.73 

 ____________________ 
 (a) This represents the weighted-average grant date fair value for PSUs where the grant date has been achieved or the price of our common stock as of the balance sheet date for PSUs where a grant date has not been achieved. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Market-Based Stock Unit Activity 
 During the year ended December 31, 2022, the Company granted approximately 428 thousand MSUs that are scheduled to cliff vest over a period of one to three years from the grant date. On the vesting date, recipients will receive between 0 % and 200 % of the granted MSUs in the form of Company Common Stock based on the achievement of specified market and service conditions. Based on the terms and conditions of the awards, the grant date fair value of the MSUs was determined using a Monte Carlo simulation model. Key assumptions for the Monte Carlo simulation model are the risk-free interest rate, expected volatility, expected dividends and correlation coefficient. The effect of market conditions is considered in determining the grant date fair value, which is not subsequently revised based on actual performance. Included in the MSUs granted during the period is an award for the Company’s CEO in the amount of 225,000 MSUs, with a grant date fair value of $ 16 million which is eligible to be earned based on the achievement of certain stock prices over a three-year period. The stock-based compensation expense associated with this award was recognized over the derived service period ending December 31, 2022. The aggregate value of MSUs granted during the year ended December 31, 2022 was $ 36 million. 
 A summary of the MSUs activity for the year ended December 31, 2022 is presented in the following table: 
 
 Units Weighted- Average Fair Value (a) 
 
 Unvested outstanding as of December 31, 2021 
 381,923 $ 77.09 
 Granted 428,153 82.96 
 Performance Adjustment 56,591 
 Vested ( 117,149 ) 37.88 
 Forfeited ( 7,715 ) 102.76 
 Unvested outstanding as of December 31, 2022 
 741,803 83.24 

 ____________________ 
 (a) Represents the grant date fair value determined using a Monte Carlo simulation model. 
 
 Stock Option Activity 
 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value
(in millions) 
 Outstanding as of December 31, 2021 
 43,905 $ 20.69 1.05 $ 3 
 Exercised ( 43,384 ) 20.63 
 
 Expired ( 433 ) 26.65 
 Outstanding as of December 31, 2022 
 88 30.63 0.14 — 
 Vested and expected to vest as of December 31, 2022 
 88 30.63 0.14 — 
 Exercisable as of December 31, 2022 
 88 30.63 0.14 — 

 
 Stock Option Exercises 
 Years Ended December 31, 
 (Dollars in millions) 2022 2021 2020 
 
 
 
 
 
 Option Exercises: 
 Number of options exercised 43,384 114,884 70,608 
 Cash received for options exercised $ 1 $ 3 $ 1 
 Aggregate intrinsic value of options exercised $ 2 $ 9 $ 5 
 
 
 

 Unrecognized Compensation Cost 
 As of December 31, 2022, the Company had $ 92 million of unrecognized compensation expense, which is expected to be recognized over a weighted-average period of 1.2 years. 
 Common Stock 
 On June 19, 2020, the Company completed the public offering of 20,700,000 shares (including the shares sold pursuant to the underwriters’ overallotment option) of Company Common Stock, at an offering price of $ 39.00 per share, which provided $ 772 million of proceeds, net of fees and estimated expenses of $ 35 million. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 On October 1, 2020, the Company completed the public offering of 35,650,000 shares (including the shares sold pursuant to the underwriters’ overallotment option) of Company Common Stock, at an offering price of $ 56.00 per share, which provided $ 1.9 billion of proceeds, net of fees and estimated expenses of $ 50 million. 
 On June 17, 2021, following receipt of required shareholder approvals, the Company amended its Certificate of Incorporation to increase the number of authorized shares of common stock from 300 million to 500 million. 
 Preferred Stock 
 On June 17, 2021, following receipt of required shareholder approvals, the Company amended its Certificate of Incorporation to authorize the issuance of up to 150 million shares of preferred stock. 
 Share Repurchase Program 
 In November 2018, the Board authorized a $ 150 million common stock repurchase program (the “Share Repurchase Program”) pursuant to which the Company may, from time to time, repurchase shares of common stock on the open market (either with or without a 10b5-1 plan) or through privately negotiated transactions. The Share Repurchase Program has no time limit and may be suspended or discontinued at any time without notice. There is no minimum number of shares of common stock that the Company is required to repurchase under the Share Repurchase Program. 
 As of December 31, 2022, the Company has acquired 223,823 shares of common stock at an aggregate value of $ 9 million and an average of $ 40.80 per share. No shares were repurchased during the years ended December 31, 2022 or 2021. 
 
 Note 16. Employee Benefit Plans 
 401(k) Plans 
 The Company offers several savings and retirement plans to substantially all employees who are not covered by collective bargaining agreements, who meet certain eligibility requirements, namely terms of service. All existing savings and retirement plans merged into the Caesars Entertainment, Inc. 401(k) Plan. Under the 401(k) plan, the Company matches contributions equal to 50 % of the first 6 % as outlined per plan documents. 
 The Company’s matching contribution expense totaled $ 29 million, $ 27 million and $ 11 million for the years ended December 31, 2022, 2021 and 2020, respectively. 
 Defined-Benefit Plans 
 Scioto Downs sponsors a noncontributory defined-benefit plan covering all full-time employees meeting certain age and service requirements. On May 31, 2001, the plan was amended to freeze eligibility, accrual of years of service and benefits. As of December 31, 2022, the fair value of the plan assets and benefit obligation was $ 1 million. The plan assets are comprised primarily of money market and mutual funds whose values are determined based on quoted market prices and are classified in Level 1 of the fair value hierarchy. We did not make cash contributions to the Scioto Downs pension plan during 2022, 2021 and 2020. 
 In addition, the Company also sponsors a defined-benefit plan for certain Tropicana Atlantic City employees under a Variable Annuity Pension Plan. As of December 31, 2022, the fair value of the plan assets was $ 21 million and benefit obligations was $ 15 million. Contributions to the plan were $ 2 million for the year ended December 31, 2022 and less than $ 1 million for the year ended December 31, 2021. 
 Deferred Compensation Plans 
 CEI assumed Former Caesars deferred compensation plans, the Caesars Entertainment Corporation Executive Supplemental Savings Plan III (“ESSP III”) and the Caesars Entertainment Corporation Outside Director Deferred Compensation Plan. These plans are unfunded, non-qualified deferred compensation plans. Payment obligations pursuant to the plans are unsecured general obligations of the Company and affiliates of the Company employing participants in the ESSP III. The liability as of December 31, 2022 and 2021 was $ 2 million and $ 3 million, respectively, which was recorded in Other long-term liabilities on the Balance Sheets. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 As of December 31, 2022, certain current and former employees of Caesars, and our subsidiaries and affiliates, have balances under: (i) the Harrah’s Entertainment, Inc. Executive Supplemental Savings Plan, (ii) the Harrah’s Entertainment, Inc. Executive Supplemental Savings Plan II, (iii) the Park Place Entertainment Corporation Executive Deferred Compensation Plan, (iv) the Harrah’s Entertainment, Inc. Deferred Compensation Plan, and (v) the Harrah’s Entertainment, Inc. Executive Deferred Compensation Plan (collectively, the “existing deferred compensation plans”). 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. The total liability recorded in Other long-term liabilities on the Balance Sheets for these plans was $ 33 million and $ 43 million as of December 31, 2022 and 2021, respectively. 
 Trust Assets 
 CEI is a party to a trust agreement (the “Trust Agreement”) and an escrow agreement with respect to all five of the existing deferred compensation plans (the “Escrow Agreement”), each structured as a so-called “rabbi trust” arrangement, which holds assets that may be used to satisfy obligations under the existing deferred compensation plans above. Amounts held pursuant to the Trust Agreement and the Escrow Agreement were $ 60 million and $ 87 million, respectively, as of December 31, 2022 and 2021 and have been reflected within Other assets, net on the Balance Sheets. 
 Multi-employer Pension Plans 
 As a result of the Merger, the Company continues to contribute to a number of multi-employer defined benefit pension plans under the terms of collective bargaining agreements that cover union-represented employees of Former Caesars. Prior to the Merger, no significant contributions were made to such plans. The risks of participating in these multi-employer plans are different from a single-employer plan in the following respects: 
 i. Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. 
 ii. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. 
 iii. If the Company chooses to stop participating in some of its multi-employer plans, the Company may be required to pay those plans an amount based on the underfunding of the plan, referred to as a “withdrawal liability.” 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 Multi-employer Pension Plan Participation 
 Pension Protection Act Zone Status (a) 
 Contributions 
 (In millions) 
 
 Pension Fund EIN/Pension Plan Number 2022 FIP/RP Status (b) 
 2022 2021 2020 Surcharge Imposed Expiration Date of Collective Bargaining Agreement (c) 
 
 Southern Nevada Culinary and Bartenders Pension Plan (d)(e) 
 88-6016617/ 001 
 Green No $ 24 $ 18 $ 5 No May 31, 2023 
 Legacy Plan of the UNITE HERE Retirement Fund (d)(e)(f) 
 82-0994119/ 001 
 Red Yes 9 9 4 No Various up to May 31, 2026 
 
 Central Pension Fund of the IUOE & Participating Employers 36-6052390/ 001 
 Green No 7 6 — N/A March 31, 2024 
 Western Conference of Teamsters Pension Plan 91-6145047/ 001 
 Green No 6 5 — N/A March 31, 2024 
 
 Local 68 Engineers Union Pension Plan (g) 
 51-0176618/ 001 
 Yellow Yes 1 1 — No April 30, 2027 
 Painters IUPAT 52-6073909/ 001 
 Yellow Yes 1 1 — No Various up to June 30, 2026 
 
 Other Funds 2 1 5 
 Total Contributions $ 50 $ 41 $ 14 

 ____________________ 
 (a) Represents the Pension Protection Act zone status for applicable plan year beginning January 1, except where noted otherwise. The zone status is based on information that the Company received from the plan administrator and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are between 65% and less than 80% funded, and plans in the green zone are at least 80% funded. All plans detailed in the table above utilized extended amortization provisions to calculate zone status. 
 (b) Indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. 
 (c) The terms of the current agreement continue indefinitely until either party provides appropriate notice of intent to terminate the contract. 
 (d) The Company provided more than 5 % of the total contributions for the plan year ended December 31, 2020. 
 (e) The Company provided more than 5 % of the total contributions for the plan year ended December 31, 2021 and as of the date the financial statements were issued, Forms 5500 were not available for the 2022 plan year. 
 (f) The HEREIU Pension Fund consists of two separate plans, the Legacy Plan of the HEREIU Pension Fund and the Adjustable Plan of the HEREIU Pension Fund. CEI makes a single contribution to the HEREIU Pension Fund, the Trustees of which allocate such contribution between the Legacy Plan and the Adjustable Plan. The contribution amount reflected to the Legacy Plan is the aggregate contribution made to the HEREIU Pension Fund before such allocation between the Legacy Plan and the Adjustable Plan of the HEREIU Pension Fund. 
 (g) Plan years begin July 1. 
 
 Note 17. Income Taxes 
 The components of the Company’s provision for income taxes for the years ended December 31, 2022, 2021 and 2020 are presented below. 
 
 Components of Income (Loss) Before Income Taxes Years Ended December 31, 
 (In millions) 2022 2021 2020 
 United States $ ( 590 ) $ ( 1,272 ) $ ( 1,608 ) 
 Outside of the U.S. 25 3 2 
 $ ( 565 ) $ ( 1,269 ) $ ( 1,606 ) 

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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 Income Tax Provision (Benefit) Years Ended December 31, 
 (In millions) 2022 2021 2020 
 United States 
 Current 
 Federal $ — $ ( 1 ) $ ( 43 ) 
 State & Local 7 ( 2 ) ( 24 ) 
 Deferred 
 Federal ( 57 ) ( 219 ) 208 
 State & Local 2 ( 106 ) ( 11 ) 
 Outside of the U.S. 
 Current 7 2 2 
 Deferred — 43 — 
 $ ( 41 ) $ ( 283 ) $ 132 

 
 Allocation of Income Tax Provision (Benefit) Years Ended December 31, 
 (In millions) 2022 2021 2020 
 Income tax provision (benefit) applicable to: 
 Income from operations $ ( 41 ) $ ( 283 ) $ 132 
 Discontinued operations ( 50 ) 19 ( 9 ) 
 Other comprehensive income ( 30 ) 3 8 

 The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2022, 2021 and 2020: 
 
 Effective Income Tax Rate Reconciliation Years Ended December 31, 
 2022 2021 2020 
 Federal statutory rate 21.0 % 21.0 % 21.0 % 
 State and local taxes ( 0.2 ) % 4.2 % 5.4 % 
 Nondeductible compensation and benefits ( 2.3 ) % ( 0.2 ) % ( 0.2 ) % 
 Goodwill disposition and impairment ( 0.6 ) % — % ( 1.6 ) % 
 Transaction expenses — % — % ( 0.5 ) % 
 Nondeductible convertible notes costs — % ( 3.3 ) % ( 1.0 ) % 
 Decrease in uncertain tax positions 0.1 % 0.4 % 0.9 % 
 Change in tax rates from change in tax law before valuation allowance ( 15.3 ) % ( 1.2 ) % — % 
 Foreign taxes ( 1.1 ) % 0.1 % 1.0 % 
 Deferred tax adjustment related to William Hill acquisition ( 5.3 ) % — % — % 
 Minority interests ( 0.5 ) % — % — % 
 Valuation allowance 9.8 % 2.6 % ( 33.9 ) % 
 Tax credits 1.8 % 0.4 % 0.1 % 
 Deferred tax recognition on life insurance — % ( 1.3 ) % — % 
 Other ( 0.2 ) % ( 0.4 ) % 0.6 % 
 Effective income tax rate 7.2 % 22.3 % ( 8.2 ) % 

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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred taxes at December 31, 2022 and 2021 are as follows: 
 
 As of December 31, 
 (In millions) 2022 2021 
 Deferred tax assets: 
 Loss carryforwards $ 779 $ 1,006 
 Excess business interest expense 288 180 
 Credit carryforwards 126 114 
 Financing obligation 2,534 2,517 
 Long-term lease obligation 160 161 
 Other 272 330 
 4,159 4,308 
 Deferred tax liabilities: 
 Identified intangibles ( 803 ) ( 1,111 ) 
 Foreign investment - held for sale — ( 139 ) 
 Fixed assets ( 2,243 ) ( 2,212 ) 
 Right-of-use assets ( 128 ) ( 131 ) 
 Other ( 163 ) ( 138 ) 
 ( 3,337 ) ( 3,731 ) 
 Valuation allowance ( 1,809 ) ( 1,840 ) 
 Net deferred tax liabilities $ ( 987 ) $ ( 1,263 ) 

 The net deferred tax liabilities above are presented in the Balance Sheets as follows: 
 
 As of December 31, 
 (In millions) 2022 2021 
 Deferred income taxes $ ( 987 ) $ ( 1,111 ) 
 Assets held for sale — 7 
 Liabilities related to assets held for sale — ( 159 ) 
 Net deferred tax liabilities $ ( 987 ) $ ( 1,263 ) 

 As a result of the Merger, the Company assumed $ 767 million of additional net deferred tax liabilities, net of valuation allowances, plus $ 24 million in additional accruals for uncertain tax positions including accrued interest. As a result of the William Hill Acquisition, the Company assumed $ 381 million of additional net deferred tax liabilities net of valuation allowances, plus $ 34 million in additional accruals for uncertain tax positions including accrued interest. Of the deferred tax liabilities and uncertain tax positions recorded due to the William Hill Acquisition, $ 132 million and $ 34 million, respectively, have been presented in Liabilities related to assets held for sale. 
 A valuation allowance is recognized if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax asset will not be realized. Management must analyze all available positive and negative evidence regarding realization of the deferred tax assets and make an assessment of the likelihood of sufficient future taxable income. We have provided a valuation allowance on certain federal, state, and foreign deferred tax assets that were not deemed realizable based upon estimates of future taxable income. 
 As of December 31, 2022, the Company had federal and state net operating loss carryforwards of $ 1.9 billion and $ 9.2 billion, respectively and federal general business tax credit and research tax credit carryforwards of $ 129 million, which will expire on various dates as follows: 
 
 Year of Expiration Net Operating Losses Tax Credits 
 (In millions) Federal States Federal 
 2023-2027 — 530 — 
 2028-2032 914 1,376 39 
 2033-2042 589 5,030 90 
 Do not expire 437 2,219 — 
 $ 1,940 $ 9,155 $ 129 

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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 In general, Section 382 of the Internal Revenue Code provides an annual limitation with respect to the ability of a corporation to utilize its net operating loss carryovers, as well as certain built-in losses, against future taxable income in the event of a change in ownership. The Merger in July 2020 and the William Hill Acquisition in April 2021 resulted in a change in ownership for purposes of Section 382, making its provisions applicable to the Company. However, it is unlikely that the annual limitation on tax attribute usage resulting from the acquisition will adversely affect the Company’s ability to utilize its net operating loss carryovers against its future taxable income. 
 
 Reconciliation of Unrecognized Tax Benefits Years Ended December 31, 
 (In millions) 2022 2021 2020 
 Balance as of beginning of year $ 157 $ 137 $ — 
 Acquisition of Caesars Entertainment Corporation — — 152 
 Acquisition of William Hill — 32 — 
 Sale of William Hill International ( 24 ) — — 
 Additions based on tax positions related to the current year 3 4 — 
 Additions for tax positions of prior years 1 5 1 
 Reductions for tax positions for prior years ( 8 ) ( 8 ) — 
 Settlements — — ( 4 ) 
 Expiration of statutes ( 1 ) ( 13 ) ( 12 ) 
 Balance as of end of year $ 128 $ 157 $ 137 

 
 We classify reserves for tax uncertainties within Other long-term liabilities in our Balance Sheets, separate from any related income tax payable or Deferred income taxes. Reserve amounts relate to any potential income tax liabilities resulting from uncertain tax positions as well as potential interest or penalties associated with those liabilities. 
 We accrue interest and penalties related to unrecognized tax benefits in income tax expense. During 2022, we decreased our accrual by $ 29 million, primarily due to the sale of William Hill International. During 2021, we increased our accrual by $ 20 million, primarily due to the William Hill Acquisition. During 2020, we increased our accrual by $ 137 million, primarily as a result of the Merger. There was no accrual for the payment of interest and penalties as of December 31, 2022 and an accrual of $ 2 million as of December 31, 2021. Included in the balances of unrecognized tax benefits as of December 31, 2022 and December 31, 2021 was $ 115 million and $ 117 million, respectively, of unrecognized tax benefits that, if recognized, would impact the effective tax rate. 
 The Company, including its subsidiaries, files tax returns with federal, state and foreign jurisdictions. The Company does not have tax sharing agreements with the other members within the consolidated group. With few exceptions, the Company is no longer subject to US federal or state and local tax assessments by tax authorities for years before 2019. We believe that it is reasonably possible that the unrecognized tax benefits liability will not materially change within the next 12 months. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. Although we believe that adequate provision has been made for such issues, there is the possibility that the ultimate resolution of such issues could have an adverse effect on our earnings. Conversely, if these issues are resolved favorably in the future, the related provision would be reduced, thus having a favorable impact on earnings. 
 
 Note 18. Related Parties 
 REI 
 As of December 31, 2022, Recreational Enterprises, Inc. (“REI”) owned approximately 4.0 % of outstanding common stock of the Company. The directors of REI are the Company’s Executive Chairman of the Board, Gary L. Carano, its Chief Executive Officer and Board member, Thomas R. Reeg, and its Vice President of Player Development, Gene Carano. In addition, Gary L. Carano also serves as the Vice President of REI and Gene Carano also serves as the Secretary and Treasurer of REI. Members of the Carano family, including Gary L. Carano and Gene Carano, own the equity interests in REI. For each of the years ended December 31, 2022, 2021 and 2020, there were no related party transactions between the Company and the Carano family other than compensation, including salary and equity incentives and the CSY Lease listed below. 
 C. S. & Y. Associates 
 The Company owns the entire parcel on which Eldorado Reno is located, except for approximately 30,000 square feet which is leased from C. S. & Y. Associates (“CSY”) which is an entity partially owned by REI (the “CSY Lease”). The CSY Lease expires on June 30, 2057. Annual rent pursuant to the CSY Lease is currently $ 0.6 million, paid monthly. Annual rent is subject to periodic rent escalations through the term of the lease. As of December 31, 2022 and 2021 there were no amounts due to or from CSY. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Transactions with Horseshoe Baltimore 
 The Company held an interest in Horseshoe Baltimore of approximately 44.3 %, which was accounted for as an equity method investment, prior to our acquisition of an additional interest and subsequent consolidation on August 26, 2021. These related party transactions included items such as casino management fees, reimbursement of various costs incurred on behalf of Horseshoe Baltimore, and the allocation of other general corporate expenses. 
 Transactions with NeoGames 
 The Company held an interest in NeoGames (see Note 5). NeoGames provides the player account management system to our wholly-owned Liberty platform. We have a dedicated team of programmers at NeoGames working on enhancements to our player account management system on our behalf, for which NeoGames is compensated under a services agreement. 
 
 Note 19. Segment Information 
 The executive decision maker of the Company reviews operating results, assesses performance and makes decisions on a “significant market” basis. Management views each of the Company’s casinos as an operating segment. Operating segments are aggregated based on their similar economic characteristics, types of customers, types of services and products provided, and their management and reporting structure. The Company’s principal operating activities occur in four reportable segments. The reportable segments are based on the similar characteristics of the operating segments with the way management assesses these results and allocates resources, which is a consolidated view that adjusts for the effect of certain transactions between these reportable segments within Caesars: (1) Las Vegas, (2) Regional, (3) Caesars Digital, and (4) Managed and Branded, in addition to Corporate and Other. See table below for a summary of these segments. Also, see Note 4, Note 6 and Note 7 for a discussion of the impairment of intangibles and long-lived assets related to certain segments. 
 The following table sets forth certain information regarding our properties (listed by segment in which each property is reported) as of December 31, 2022: 
 
 Las Vegas Regional Managed and Branded 
 Caesars Palace Las Vegas 
 Caesars Atlantic City Horseshoe Black Hawk (a) 
 Managed 
 The Cromwell 
 Circus Circus Reno Horseshoe Bossier City Harrah’s Ak-Chin 
 
 Flamingo Las Vegas 
 Eldorado Gaming Scioto Downs Horseshoe Council Bluffs Harrah’s Cherokee 
 
 Harrah’s Las Vegas 
 Eldorado Resort Casino Reno Horseshoe Hammond Harrah’s Cherokee Valley River 
 
 Horseshoe Las Vegas (a) 
 Grand Victoria Casino Horseshoe Indianapolis (a) 
 Harrah’s Resort Southern California 
 
 The LINQ Hotel & Casino 
 Harrah’s Atlantic City 
 Horseshoe Lake Charles (b) 
 Caesars Windsor 
 
 Paris Las Vegas 
 Harrah’s Council Bluffs 
 Horseshoe St. Louis (a) 
 Caesars Dubai 
 
 Planet Hollywood Resort & Casino 
 Harrah’s Gulf Coast 
 Horseshoe Tunica Branded 
 Rio All-Suite Hotel & Casino 
 Harrah’s Hoosier Park Racing & Casino 
 Isle Casino Bettendorf Caesars Southern Indiana 
 
 Harrah’s Joliet 
 Isle of Capri Casino Boonville Harrah’s Northern California 
 
 Caesars Digital Harrah’s Lake Tahoe 
 Isle of Capri Casino Lula 
 Caesars Digital Harrah’s Laughlin 
 Isle Casino Waterloo 
 Harrah’s Metropolis 
 Lady Luck Casino - Black Hawk 
 Harrah’s New Orleans 
 Silver Legacy Resort Casino 
 Harrah’s North Kansas City 
 Trop Casino Greenville 
 Harrah’s Philadelphia 
 Tropicana Atlantic City 
 Harrah’s Pompano Beach (a) 
 Tropicana Laughlin Hotel & Casino 
 Harveys Lake Tahoe 
 
 Horseshoe Baltimore 
 

 ___________________ 
 (a) During the year ended December 31, 2022, Bally’s Las Vegas was rebranded as Horseshoe Las Vegas, Isle Casino Hotel - Black Hawk was rebranded as Horseshoe Black Hawk, Indiana Grand was rebranded as Horseshoe Indianapolis, Isle Casino Racing Pompano Park was rebranded as Harrah’s Pompano Beach, and Lumière Place Casino was rebranded as Horseshoe St. Louis. 
 (b) Isle of Capri Casino Hotel Lake Charles temporarily closed at the end of August 2020 due to damage from Hurricane Laura and reopened in December 2022 as Horseshoe Lake Charles, the new land-based casino. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 Certain of our properties operate off-track betting locations, including Harrah’s Hoosier Park Racing & Casino, which operates Winner’s Circle Indianapolis and Winner’s Circle New Haven; and Horseshoe Indianapolis (formerly “Indiana Grand”), which operates Winner’s Circle Clarksville. The LINQ Promenade is an open-air dining, entertainment, and retail promenade located on the east side of the Las Vegas Strip next to The LINQ Hotel & Casino that features the High Roller, a 550 -foot observation wheel, and the Fly LINQ Zipline attraction. We also own the CAESARS FORUM conference center, which is a 550,000 square feet conference center with 300,000 square feet of flexible meeting space, two of the largest pillarless ballrooms in the world and direct access to the LINQ. 
 “Corporate and Other” includes certain unallocated corporate overhead costs and other adjustments, including eliminations of transactions among segments, to reconcile to the Company’s consolidated results. 
 The following table sets forth, for the periods indicated, certain operating data for the Company’s four reportable segments, in addition to Corporate and Other. 
 
 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 Las Vegas: 
 Net revenues $ 4,287 $ 3,409 $ 751 
 Adjusted EBITDA 1,964 1,568 133 
 Regional: 
 Net revenues 5,704 5,537 2,660 
 Adjusted EBITDA 1,985 1,979 711 
 Caesars Digital: 
 Net revenues 548 337 95 
 Adjusted EBITDA ( 666 ) ( 476 ) 26 
 Managed and Branded: 
 Net revenues 282 278 107 
 Adjusted EBITDA 84 87 25 
 Corporate and Other: 
 Net revenues — 9 15 
 Adjusted EBITDA ( 124 ) ( 168 ) ( 101 ) 

 Reconciliation of Net Income (Loss) Attributable to Caesars to Adjusted EBITDA by Segment 
 Adjusted EBITDA is presented as a measure of the Company’s performance. Adjusted EBITDA is defined as revenues less certain operating expenses and is comprised of net income (loss) before (i) interest income and interest expense, net of interest capitalized, (ii) income tax (benefit) provision, (iii) depreciation and amortization, and (iv) certain items that we do not consider indicative of our ongoing operating performance at an operating property level. 
 In evaluating Adjusted EBITDA you should be aware that, in the future, we may incur expenses that are the same or similar to some of the adjustments in this presentation. The presentation of Adjusted EBITDA should not be construed as an inference that future results will be unaffected by unusual or unexpected items. 
 Adjusted EBITDA is a financial measure commonly used in our industry and should not be construed as an alternative to net income (loss) as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies within the industry. Adjusted EBITDA is included because management uses Adjusted EBITDA to measure performance and allocate resources, and believes that Adjusted EBITDA provides investors with additional information consistent with that used by management. 
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 CAESARS ENTERTAINMENT, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 

 
 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 Net loss attributable to Caesars $ ( 899 ) $ ( 1,019 ) $ ( 1,757 ) 
 Net income (loss) attributable to noncontrolling interests ( 11 ) 3 ( 1 ) 
 Net loss from discontinued operations 386 30 20 
 (Benefit) provision for income taxes ( 41 ) ( 283 ) 132 
 Other (income) loss (a) 
 ( 46 ) 198 ( 176 ) 
 Loss on extinguishment of debt 85 236 197 
 Interest expense, net 2,265 2,295 1,202 
 Depreciation and amortization 1,205 1,126 583 
 Impairment charges 108 102 215 
 Transaction costs and other (b) 
 90 220 300 
 Stock-based compensation expense 101 82 79 
 Adjusted EBITDA $ 3,243 $ 2,990 $ 794 
 
 Adjusted EBITDA by Segment: 
 Las Vegas $ 1,964 $ 1,568 $ 133 
 Regional 1,985 1,979 711 
 Caesars Digital ( 666 ) ( 476 ) 26 
 Managed and Branded 84 87 25 
 Corporate and Other ( 124 ) ( 168 ) ( 101 ) 

 ____________________ 
 (a) Other (income) loss primarily includes the net changes in fair value of (i) investments held by the Company (ii) foreign exchange forward contracts (iii) the disputed claims liability related to Former Caesars’ bankruptcy prior to the Merger, and (iv) the derivative liability related to the 5 % Convertible Notes, which were fully converted during the year ended December 31, 2021, and the change in the foreign exchange rate associated with restricted cash held in GBP associated with our acquisition of William Hill. 
 (b) Transaction costs and other primarily includes costs related to the William Hill Acquisition, the Merger, various contract or license termination exit costs, professional services for integration activities and non-cash changes in equity method investments partially offset by gains resulting from insurance proceeds received in excess of the respective carrying value of the assets damaged at Lake Charles by Hurricane Laura. 
 
 Capital Expenditures, Net - By Segment 
 Years Ended December 31, 
 (In millions) 2022 2021 2020 
 Las Vegas $ 165 $ 85 $ 32 
 Regional 597 327 104 
 Caesars Digital 106 67 — 
 
 Corporate and Other 84 39 33 
 Total (a) 
 $ 952 $ 518 $ 169 

 ____________________ 
 (a) Includes capital expenditures associated with our discontinued operations, where applicable. 
 
 Total Assets - By Segment 
 December 31, 
 (In millions) 2022 2021 
 Las Vegas $ 23,547 $ 22,374 
 Regional 14,908 14,419 
 Caesars Digital 1,200 1,878 
 Managed and Branded (a) 
 140 3,527 
 Corporate and Other (b) 
 ( 6,268 ) ( 4,167 ) 
 Total $ 33,527 $ 38,031 

 ____________________ 
 (a) Assets held for sale associated with William Hill International were divested on July 1, 2022. 
 (b) Includes eliminations of transactions among segments, to reconcile to the Company’s consolidated results. 
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 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 
 None.
Caesars Entertainment, Inc. 10-K

Item 8. Financial Statements and Supplementary Data
