Acquisitions and Discontinued Operations

Acquisitions

Pacific Interactive

In February 2014, CIE acquired Pacific Interactive UK Limited (“Pacific Interactive”) and the assets of various affiliates, a social and mobile games developer and owner of House of Fun Slots, which was not considered material. CIE recorded contingent consideration payable of approximately $29 million associated with this acquisition as of the acquisition date. This contingent consideration was subsequently adjusted to its estimated fair market value totaling $66 million as of December 31, 2014. The liabilities were paid during the first and second quarter of 2015.

Discontinued Operations

Discontinued operations primarily include properties owned by CEOC, which was deconsolidated effective January 15, 2015 (see Note 3).



	Years Ended December 31,
(In millions)	2015			2014			2013
Net revenues
Showboat Atlantic City	$	—		$	115		$	199
Harrah’s Tunica	—			46			130
Other	—			2			14
Total net revenues	$	—		$	163		$	343

Pre-tax loss from operations
Showboat Atlantic City	$	(6	)	$	(59	)	$	(66	)
Harrah’s Tunica	—			(120		)	(140		)
Other	(1		)	(34		)	(33		)
Total pre-tax loss from discontinued operations	$	(7	)	$	(213	)	$	(239	)

Loss, net of income taxes
Showboat Atlantic City	$	(6	)	$	(38	)	$	(83	)
Harrah’s Tunica	—			(120		)	(91		)
Other	(1		)	(34		)	(33		)
Total loss from discontinued operations, net of income taxes	$	(7	)	$	(192	)	$	(207	)

Tangible and intangible asset impairments
Showboat Atlantic City	$	—		$	10		$	69
Harrah’s Tunica	—			68			118
Other	—			17			12
Total impairments from discontinued operations	$	—		$	95		$	199

Showboat Atlantic City

CEOC closed its Showboat Atlantic City casino permanently effective August 2014 and subsequently sold it in December 2014 for $18 million. In 2014 we accrued severance and other exit costs totaling $26 million and recognized a tangible asset impairment of $10 million. As of December 31, 2014, this transaction had not met the requirements of a completed sale of real estate for accounting purposes. As a result, the $18 million in assets were classified as held for sale and the sale proceeds were recorded as a liability. In 2015, the requirements for recognition as a completed sale were met.

Harrah’s Tunica

CEOC closed its Harrah’s Tunica casino permanently effective June 2014 and recorded intangible and tangible asset impairment charges totaling $68 million and accrued exit costs of $16 million associated with the closure of this casino. Harrah’s Tunica was sold by CEOC in January 2016.