Segment Reporting

We view each casino property as an operating segment and currently aggregate all such casino properties into two reportable segments: CERP and CGP.

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 effect of certain transactions between reportable segments within Caesars, as described below. Accordingly, the results of certain reportable segments presented in this filing differ from the financial statement information presented in their standalone filings.

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

Condensed Statements of Operations - By Segment

	Three Months Ended September 30, 2017
(In millions)	CERP			CGP			Other			Elimination			Caesars
Other revenues	$	88		$	66		$	2		$	(6	)	$	150
Net revenues	582			409			1			(6		)	986
Depreciation and amortization	86			64			—			—			150
Income/(loss) from operations	83			31			(28		)	—			86
Interest expense	(84		)	(36		)	—			—			(120		)
Restructuring of CEOC and other	1			25			(472		)	—			(446		)
Income tax benefit	5			—			15			—			20



	Three Months Ended September 30, 2016
(In millions)	CERP			CGP			Other			Elimination			Caesars
Other revenues	$	85		$	59		$	—		$	(4	)	$	140
Net revenues	569			422			(1		)	(4		)	986
Depreciation and amortization	63			48			1			—			112
Income/(loss) from operations	104			(109		)	(39		)	—			(44		)
Interest expense	(99		)	(49		)	1			—			(147		)
Restructuring of CEOC and other	1			1			(3,072		)	—			(3,070		)
Income tax benefit/(provision)	—			2			(29		)	—			(27		)



	Nine Months Ended September 30, 2017
(In millions)	CERP			CGP			Other			Elimination			Caesars
Other revenues	$	254		$	185		$	5		$	(16	)	$	428
Net revenues	1,698			1,265			4			(16		)	2,951
Depreciation and amortization	196			152			—			—			348
Income/(loss) from operations	311			149			(59		)	—			401
Interest expense	(273		)	(131		)	(5		)	—			(409		)
Restructuring of CEOC and other	(1		)	30			(2,348		)	—			(2,319		)
Income tax provision	(11		)	—			(72		)	—			(83		)



	Nine Months Ended September 30, 2016
(In millions)	CERP			CGP			Other			Elimination			Caesars
Other revenues	$	243		$	167		$	3		$	(15	)	$	398
Net revenues	1,659			1,283			1			(15		)	2,928
Depreciation and amortization	196			131			—			—			327
Income/(loss) from operations	293			(22		)	(116		)	—			155
Interest expense	(297		)	(149		)	(2		)	—			(448		)
Restructuring of CEOC and other	—			2			(5,335		)	—			(5,333		)
Income tax benefit/(provision)	2			6			(45		)	—			(37		)

Property EBITDA - by Segment

Property earnings before interest, taxes, depreciation and amortization (“EBITDA”) is presented as a measure of the Company’s performance. Property EBITDA is defined as revenues less property operating expenses and is comprised of net income/(loss) before (i) interest expense, net of interest capitalized and interest income, (ii) income tax (benefit)/provision, (iii) depreciation and amortization, (iv) corporate expenses, and (v) certain items that we do not consider indicative of its ongoing operating performance at an operating property level. As a result of the sale of the SMG Business (see Note 1), we have determined that CIE stock-based compensation expense should be excluded from Property EBITDA as management no longer considers such expense to be indicative of Caesars Entertainment’s ongoing consolidated or segment operating performance. Therefore, Property EBITDA has been recast for prior periods to be consistent to the current year presentation.

In evaluating Property EBITDA you should be aware that, in the future, we may incur expenses that are the same or similar to some of the adjustments in this presentation. The presentation of Property EBITDA should not be construed as an inference that future results will be unaffected by unusual or unexpected items.

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



	Three Months Ended September 30, 2017
(In millions)	CERP			CGP			Other			Elimination			Caesars
Net income/(loss) attributable to company	$	5		$	26		$	(499	)	$	—		$	(468	)
Net income/(loss) attributable to noncontrolling interests	—			(6		)	14			—			8
Income tax benefit	(5		)	—			(15		)	—			(20		)
Restructuring of CEOC and other	(1		)	(25		)	472			—			446
Interest expense	84			36			—			—			120
Depreciation and amortization	86			64			—			—			150
Corporate expense	11			7			22			(1		)	39
Other operating costs	16			10			10			—			36
Property EBITDA	$	196		$	112		$	4		$	(1	)	$	311



	Three Months Ended September 30, 2016
(In millions)	CERP			CGP			Other			Elimination			Caesars
Net income/(loss) attributable to company	$	6		$	3,897		$	(4,546	)	$	—		$	(643	)
Net income/(loss) attributable to noncontrolling interests	—			(33		)	681			—			648
Discontinued operations, net of income taxes	—			(4,019		)	726			—			(3,293		)
Income tax (benefit)/provision	—			(2		)	29			—			27
Restructuring of CEOC and other	(1		)	(1		)	3,072			—			3,070
Interest expense	99			49			(1		)	—			147
Depreciation and amortization	63			48			1			—			112
Corporate expense	11			6			23			(1		)	39
Other operating costs	—			16			19			—			35
CIE stock-based compensation	—			145			—			—			145
Property EBITDA	$	178		$	106		$	4		$	(1	)	$	287



	Nine Months Ended September 30, 2017
(In millions)	CERP		CGP			Other			Elimination			Caesars
Net income/(loss) attributable to company	$	26	$	55		$	(2,537	)	$	—		$	(2,456	)
Net income/(loss) attributable to noncontrolling interests	—		(7		)	53			—			46
Income tax provision	11		—			72			—			83
Restructuring of CEOC and other	1		(30		)	2,348			—			2,319
Interest expense	273		131			5			—			409
Depreciation and amortization	196		152			—			—			348
Corporate expense	34		23			57			(2		)	112
Other operating costs	18		26			7			—			51
Property EBITDA	$	559	$	350		$	5		$	(2	)	$	912



	Nine Months Ended September 30, 2016
(In millions)	CERP			CGP			Other			Elimination			Caesars
Net income/(loss) attributable to company	$	(2	)	$	3,940		$	(6,966	)	$	—		$	(3,028	)
Net income/(loss) attributable to noncontrolling interests	—			(26		)	742			—			716
Discontinued operations, net of income taxes	—			(4,077		)	726			—			(3,351		)
Income tax (benefit)/provision	(2		)	(6		)	45			—			37
Restructuring of CEOC and other	—			(2		)	5,335			—			5,333
Interest expense	297			149			2			—			448
Depreciation and amortization	196			131			—			—			327
Corporate expense	32			21			69			(2		)	120
Other operating costs	5			19			53			—			77
CIE stock-based compensation	—			188			—			—			188
Property EBITDA	$	526		$	337		$	6		$	(2	)	$	867

Condensed Balance Sheets - By Segment

	September 30, 2017
(In millions)	CERP		CGP		Other		Elimination			Caesars
Total assets	$	7,025	$	6,694	$	1,104	$	(470	)	$	14,353
Total liabilities	5,855		2,250		10,154		(91		)	18,168



	December 31, 2016
(In millions)	CERP		CGP		Other		Elimination			Caesars
Total assets	$	6,941	$	7,353	$	1,246	$	(646	)	$	14,894
Total liabilities	5,903		2,709		7,758		(58		)	16,312