Segment Reporting

We view each casino property and CIE as operating segments and currently aggregate all such casino properties and CIE into three reportable segments based on management’s view of these properties, which aligns with their ownership and underlying credit structures: CERP, Caesars Growth Partners Casino Properties and Developments (“CGP Casinos”), and CIE. CGP Casinos is comprised of all subsidiaries of CGP excluding CIE. CIE is comprised of the subsidiaries that operate CGP’s social and mobile games operations and WSOP. CEOC remained a reportable segment until its deconsolidation effective January 15, 2015 (see Note 3).

The results of each reportable segment presented below are consistent with the way Caesars management assesses these results and allocates resources, which is a consolidated view that adjusts for the impact of certain transactions between reportable segments within Caesars, as described below. Accordingly, the results of certain reportable segments presented in this filing differ from the financial statement information presented in their standalone filings.

“Other” includes parent, consolidating, and other adjustments to reconcile to consolidated Caesars results.

Condensed Statements of Operations - By Segment

	Year Ended December 31, 2015
(In millions)	CEOC			CERP			CGP Casinos			CIE ⁽¹⁾			Other			Elimination			CEC
Other revenues	$	12		$	297		$	163		$	—		$	26		$	(30	)	$	468
Net revenues	164			2,154			1,579			766			26			(35		)	4,654
Depreciation and amortization	11			210			150			30			—			—			401
Impairment of goodwill	—			—			—			—			—			—			—
Impairment of tangible and other intangible assets	—			—			1			—			—			—			1
Income/(loss) from operations	9			411			291			189			(328		)	1			573
Interest expense	(87		)	(399		)	(194		)	(5		)	(4		)	5			(684		)
Deconsolidation and restructuring of CEOC and other	—			—			2			5			6,113			(5		)	6,115
Income tax benefit/(provision) from continuing operations	—			(5		)	—			(62		)	122			—			55

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⁽¹⁾	Includes foreign net revenues of $616 million



	Year Ended December 31, 2014
(In millions)	CEOC ⁽¹⁾			CERP			CGP Casinos			CIE ⁽²⁾			Other			Elimination			CEC
Other revenues	$	324		$	300		$	154		$	—		$	112		$	(187	)	$	703
Net revenues	4,812			2,065			1,281			587			101			(330		)	8,516
Depreciation and amortization	291			200			115			28			3			(1		)	636
Impairment of goodwill	251			289			155			—			—			—			695
Impairment of tangible and other intangible assets	308			(12		)	—			3			—			—			299
Income/(loss) from operations	(323		)	(32		)	(139		)	21			14			7			(452		)
Interest expense	(2,184		)	(389		)	(164		)	(6		)	(17		)	90			(2,670		)
Deconsolidation and restructuring of CEOC and other	(100		)	—			132			—			(30		)	(97		)	(95		)
Income tax benefit/(provision) from continuing operations	264			28			214			(36		)	73			—			543

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⁽¹⁾	Includes foreign net revenues of $337 million


⁽²⁾	Includes foreign net revenues of $434 million



	Year Ended December 31, 2013
(In millions)	CEOC ⁽¹⁾			CERP			CGP Casinos			CIE⁽²⁾			Other			Elimination			CEC
Other revenues	$	354		$	231		$	96		$	—		$	22		$	(102	)	$	601
Net revenues	4,985			1,979			1,040			317			20			(121		)	8,220
Depreciation and amortization	384			216			83			18			—			—			701
Impairment of goodwill	104			—			—			—			—			—			104
Impairment of tangible and other intangible assets	1,668			1,059			—			—			—			—			2,727
Income/(loss) from operations	(1,344		)	(804		)	(3		)	(9		)	134			—			(2,026		)
Interest expense	(2,069		)	(246		)	(60		)	(3		)	(9		)	135			(2,252		)
Deconsolidation and restructuring of CEOC and other	34			15			28			(1		)	87			(135		)	28
Income tax benefit/(provision) from continuing operations	651			384			(113		)	(2		)	597			—			1,517

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⁽¹⁾	Includes foreign net revenues of $356 million


⁽²⁾	Includes foreign net revenues of $224 million

Property EBITDA - by Segment

Property EBITDA is defined as revenues less property operating expenses and is comprised of net income/(loss) before (i) interest expense, net of interest capitalized and interest income, (ii) (benefit)/provision for income taxes, (iii) depreciation and amortization, (iv) corporate expenses, and (v) certain items that we do not consider indicative of its ongoing operating performance at an operating property level. In evaluating Property EBITDA you should be aware that, in the future, we may incur expenses that are the same or similar to some of the adjustments in this presentation. The presentation of Property EBITDA should not be construed as an inference that future results will be unaffected by unusual or unexpected items.

Property EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net income/(loss) as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Property EBITDA may not be comparable to similarly titled measures reported by other companies within the industry. Property EBITDA is included because management uses Property EBITDA to measure performance and allocate resources, and believes that Property EBITDA provides investors with additional information consistent with that used by management.



	Year Ended December 31, 2015
(In millions)	CEOC			CERP		CGP Casinos			CIE			Other			Elimination			CEC
Net income/(loss) attributable to company	$	(85	)	$	7	$	113		$	107		$	5,777		$	1		$	5,920
Net income/(loss) attributable to noncontrolling interests	—			—		(14		)	20			126			—			132
Loss from discontinued operations, net of income taxes	7			—		—			—			—			—			7
Income tax (benefit)/provision	—			5		—			62			(122		)	—			(55		)
Deconsolidation and restructuring of CEOC and other	—			—		(2		)	(5		)	(6,113		)	5			(6,115		)
Interest expense	87			399		194			5			4			(5		)	684
Depreciation and amortization	11			210		150			30			—			—			401
Impairment of goodwill	—			—		—			—			—			—			—
Impairment of tangible and other intangible assets	—			—		1			—			—			—			1
Corporate expense	7			47		39			—			95			(12		)	176
Other operating costs	4			4		(105		)	—			249			—			152
EBITDA attributable to discontinued operations	—			—		—			—			—			—			—
Property EBITDA	$	31		$	672	$	376		$	219		$	16		$	(11	)	$	1,303



	Year Ended December 31, 2014
(In millions)	CEOC			CERP			CGP Casinos			CIE			Other			Elimination			CEC
Net income/(loss) attributable to company	$	(2,524	)	$	(393	)	$	71		$	(32	)	$	95		$	—		$	(2,783	)
Net income/(loss) attributable to noncontrolling interests	8			—			(28		)	(5		)	(58		)	—			(83		)
Loss from discontinued operations, net of income taxes	173			—			—			16			3			—			192
Income tax (benefit)/provision	(264		)	(28		)	(214		)	36			(73		)	—			(543		)
Deconsolidation and restructuring of CEOC and other	100			—			(132		)	—			30			97			95
Interest expense	2,184			389			164			6			17			(90		)	2,670
Depreciation and amortization	291			200			115			28			3			(1		)	636
Impairment of goodwill	251			289			155			—			—			—			695
Impairment of tangible and other intangible assets	308			(12		)	—			3			—			—			299
Corporate expense	189			60			23			—			13			(3		)	282
Other operating costs	106			15			111			33			(24		)	(5		)	236
EBITDA attributable to discontinued operations	(6		)	—			—			(1		)	—			—			(7		)
Property EBITDA	$	816		$	520		$	265		$	84		$	6		$	(2	)	$	1,689



	Year Ended December 31, 2013
(In millions)	CEOC			CERP			CGP Casinos			CIE			Other			Elimination			CEC
Net income/(loss) attributable to company	$	(2,939	)	$	(651	)	$	(146	)	$	(13	)	$	801		$	—		$	(2,948	)
Net income/(loss) attributable to noncontrolling interests	4			—			(2		)	(2		)	8			—			8
Loss from discontinued operations, net of income taxes	207			—			—			—			—			—			207
Income tax (benefit)/provision	(651		)	(384		)	113			2			(597		)	—			(1,517		)
Deconsolidation and restructuring of CEOC and other	(34		)	(15		)	(28		)	1			(87		)	135			(28		)
Interest expense	2,069			246			60			3			9			(135		)	2,252
Depreciation and amortization	384			216			83			18			—			—			701
Impairment of goodwill	104			—			—			—			—			—			104
Impairment of tangible and other intangible assets	1,668			1,059			—			—			—			—			2,727
Corporate expense	138			47			—			—			16			(40		)	161
Other operating costs	106			12			168			53			(136		)	—			203
EBITDA attributable to discontinued operations	7			—			—			—			—			—			7
Property EBITDA	$	1,063		$	530		$	248		$	62		$	14		$	(40	)	$	1,877

Condensed Balance Sheets - By Segment

	As of December 31, 2015
(In millions)	CERP		CGP Casinos		CIE⁽¹⁾		Other		Elimination			CEC
Total assets	$	7,028	$	4,174	$	485	$	1,409	$	(901	)	$	12,195
Total liabilities	6,073		2,583		269		1,155		(118		)	9,962

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⁽¹⁾	Includes foreign assets of $281 million and foreign liabilities of $57 million



	As of December 31, 2014
(In millions)	CEOC ⁽¹⁾		CERP		CGP Casinos		CIE ⁽²⁾		Other			Elimination			CEC
Total assets	$	11,185	$	7,152	$	4,171	$	546	$	2,749		$	(2,475	)	$	23,328
Total liabilities	19,603		6,314		2,965		367		(586		)	(593		)	28,070

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⁽¹⁾	Includes foreign assets of $312 million and foreign liabilities of $183 million


⁽²⁾	Includes foreign assets of $305 million and foreign liabilities of $172 million