Attached files
Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)
Exhibit. Supplemental Consolidating Financial Information
The following tables present the balance sheets as of December 31, 2020 and 2019, statements of operations for years ended December 31, 2020 and 2019, cash flows for years ended December 31, 2020 and 2019, and Adjusted EBITDA for the quarter and year ended December 31, 2020 of Caesars Resort Collection, LLC (“CRC”), as it consolidates into CEI as a wholly-owned subsidiary. “Other Operations, Eliminations” presents the operations of CEI’s other subsidiaries, including eliminations of intercompany transactions. CEI consolidated balance does not include CRC until the period starting from July 20, 2020.
The consolidating condensed balance sheets as of December 31, 2020 and 2019 are as follows:
____________________
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
| (In millions) | CRC (1) | Other Operations, Eliminations | CEI Consolidated | CRC (1) | Other Operations, Eliminations | CEI Consolidated | |||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||||||
| CURRENT ASSETS: | |||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 374 | $ | 1,384 | $ | 1,758 | $ | 1,393 | $ | (1,187) | $ | 206 | |||||||||||||||||||||||
| Restricted cash and investments | 9 | 2,012 | 2,021 | 17 | (13) | 4 | |||||||||||||||||||||||||||||
| Accounts receivable, net | 262 | 76 | 338 | 402 | (348) | 54 | |||||||||||||||||||||||||||||
| Due from affiliates | 613 | (569) | 44 | 487 | (483) | 4 | |||||||||||||||||||||||||||||
| Inventories | 30 | 14 | 44 | 35 | (17) | 18 | |||||||||||||||||||||||||||||
| Prepayments and other current assets | 157 | 93 | 250 | 147 | (81) | 66 | |||||||||||||||||||||||||||||
| Assets held for sale | 1,500 | 712 | 2,212 | 50 | 203 | 253 | |||||||||||||||||||||||||||||
| Total current assets | 2,945 | 3,722 | 6,667 | 2,531 | (1,926) | 605 | |||||||||||||||||||||||||||||
| Investments in and advances to unconsolidated affiliates | — | 173 | 173 | — | 136 | 136 | |||||||||||||||||||||||||||||
| Property and equipment, net | 11,763 | 2,570 | 14,333 | 14,294 | (11,679) | 2,615 | |||||||||||||||||||||||||||||
| Gaming licenses and other intangibles, net | 3,151 | 1,102 | 4,253 | 2,717 | (1,606) | 1,111 | |||||||||||||||||||||||||||||
| Goodwill | 8,872 | 851 | 9,723 | 4,012 | (3,102) | 910 | |||||||||||||||||||||||||||||
| Other assets, net | 1,412 | (176) | 1,236 | 750 | (486) | 264 | |||||||||||||||||||||||||||||
| Total assets | $ | 28,143 | $ | 8,242 | $ | 36,385 | $ | 24,304 | $ | (18,663) | $ | 5,641 | |||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||
| CURRENT LIABILITIES: | |||||||||||||||||||||||||||||||||||
| Current portion of long-term debt | $ | 67 | $ | — | $ | 67 | $ | 64 | $ | 182 | $ | 246 | |||||||||||||||||||||||
| Accounts payable | 110 | 55 | 165 | 271 | (209) | 62 | |||||||||||||||||||||||||||||
| Accrued interest | 46 | 183 | 229 | 20 | 16 | 36 | |||||||||||||||||||||||||||||
| Accrued other liabilities | 827 | 412 | 1,239 | 1,335 | (1,028) | 307 | |||||||||||||||||||||||||||||
| Due to affiliates | 12 | (12) | — | 4 | (4) | — | |||||||||||||||||||||||||||||
| Liabilities related to assets held for sale | 646 | 239 | 885 | 7 | 30 | 37 | |||||||||||||||||||||||||||||
| Total current liabilities | 1,708 | 877 | 2,585 | 1,701 | (1,013) | 688 | |||||||||||||||||||||||||||||
| Long-term financing obligation | 11,064 | 1,231 | 12,295 | 10,070 | (9,099) | 971 | |||||||||||||||||||||||||||||
| Long-term debt, less current portion | 8,304 | 5,769 | 14,073 | 7,420 | (5,095) | 2,325 | |||||||||||||||||||||||||||||
| Long-term debt to related party | 15 | (15) | — | 15 | (15) | — | |||||||||||||||||||||||||||||
| Deferred income taxes | 1,223 | (57) | 1,166 | 1,044 | (847) | 197 | |||||||||||||||||||||||||||||
| Other long-term liabilities | 610 | 622 | 1,232 | 931 | (588) | 343 | |||||||||||||||||||||||||||||
| Total liabilities | 22,924 | 8,427 | 31,351 | 21,181 | (16,657) | 4,524 | |||||||||||||||||||||||||||||
| STOCKHOLDERS' EQUITY: | |||||||||||||||||||||||||||||||||||
| Caesars stockholders’ equity | 5,202 | (186) | 5,016 | 3,109 | (1,992) | 1,117 | |||||||||||||||||||||||||||||
| Noncontrolling interests | 17 | 1 | 18 | 14 | (14) | — | |||||||||||||||||||||||||||||
| Total stockholders’ equity | 5,219 | (185) | 5,034 | 3,123 | (2,006) | 1,117 | |||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 28,143 | $ | 8,242 | $ | 36,385 | $ | 24,304 | $ | (18,663) | $ | 5,641 | |||||||||||||||||||||||
(1)In connection with the Merger, CEOC, LLC has been contributed to CRC and the results for the periods presented have been recast as the contribution was between entities under common control.
Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)
The consolidating condensed statements of operations for years ended December 31, 2020 and 2019 are as follows:
| Year Ended December 31, 2020 | Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||
| (In millions) | CRC (1) | Other Operations, Eliminations | CEI Consolidated | CRC (1) | Other Operations, Eliminations | CEI Consolidated | |||||||||||||||||||||||||||||
| REVENUES: | |||||||||||||||||||||||||||||||||||
| Casino and pari-mutuel commissions | $ | 2,574 | $ | (237) | $ | 2,337 | $ | 4,399 | $ | (2,591) | $ | 1,808 | |||||||||||||||||||||||
| Food and beverage | 591 | (254) | 337 | 1,613 | (1,312) | 301 | |||||||||||||||||||||||||||||
| Hotel | 686 | (236) | 450 | 1,581 | (1,281) | 300 | |||||||||||||||||||||||||||||
| Other | 610 | (260) | 350 | 1,144 | (1,025) | 119 | |||||||||||||||||||||||||||||
| Net revenues | 4,461 | (987) | 3,474 | 8,737 | (6,209) | 2,528 | |||||||||||||||||||||||||||||
| EXPENSES: | |||||||||||||||||||||||||||||||||||
| Casino and pari-mutuel commissions | 1,529 | (332) | 1,197 | 2,485 | (1,580) | 905 | |||||||||||||||||||||||||||||
| Food and beverage | 472 | (211) | 261 | 1,128 | (889) | 239 | |||||||||||||||||||||||||||||
| Hotel | 263 | (93) | 170 | 486 | (387) | 99 | |||||||||||||||||||||||||||||
| Other | 310 | (170) | 140 | 599 | (553) | 46 | |||||||||||||||||||||||||||||
| General and administrative | 1,145 | (263) | 882 | 1,520 | (1,017) | 503 | |||||||||||||||||||||||||||||
| Corporate | 224 | (29) | 195 | 258 | (192) | 66 | |||||||||||||||||||||||||||||
| Impairment charges | 68 | 147 | 215 | 468 | (467) | 1 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 938 | (355) | 583 | 1,019 | (797) | 222 | |||||||||||||||||||||||||||||
| Transaction costs and other operating costs | 169 | 99 | 268 | 91 | (54) | 37 | |||||||||||||||||||||||||||||
| Total operating expenses | 5,118 | (1,207) | 3,911 | 8,054 | (5,936) | 2,118 | |||||||||||||||||||||||||||||
| Operating (loss) income | (657) | 220 | (437) | 683 | (273) | 410 | |||||||||||||||||||||||||||||
| OTHER EXPENSE: | |||||||||||||||||||||||||||||||||||
| Interest expense, net | (1,437) | 263 | (1,174) | (1,297) | 1,011 | (286) | |||||||||||||||||||||||||||||
| Loss on extinguishment of debt | — | (197) | (197) | — | (8) | (8) | |||||||||||||||||||||||||||||
| Other (loss) income | (13) | 189 | 176 | (11) | 20 | 9 | |||||||||||||||||||||||||||||
| Total other expense | (1,450) | 255 | (1,195) | (1,308) | 1,023 | (285) | |||||||||||||||||||||||||||||
| (Loss) income from continuing operations before income taxes | (2,107) | 475 | (1,632) | (625) | 750 | 125 | |||||||||||||||||||||||||||||
| Benefit (provision) for income taxes | (162) | 36 | (126) | 66 | (110) | (44) | |||||||||||||||||||||||||||||
| Net (loss) income from continuing operations, net of income taxes | (2,269) | 511 | (1,758) | (559) | 640 | 81 | |||||||||||||||||||||||||||||
| Discontinued operations, net of income taxes | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Net (loss) income | (2,269) | 511 | (1,758) | (559) | 640 | 81 | |||||||||||||||||||||||||||||
| Net (loss) income attributable to noncontrolling interests | 5 | (4) | 1 | (1) | 1 | — | |||||||||||||||||||||||||||||
| Net (loss) income attributable to Caesars | $ | (2,264) | $ | 507 | $ | (1,757) | $ | (560) | $ | 641 | $ | 81 | |||||||||||||||||||||||
____________________
(1)In connection with the Merger, CEOC, LLC has been contributed to CRC and the results for the periods presented have been recast as the contribution was between entities under common control.
Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)
The consolidating condensed statements of cash flows for years ended December 31, 2020 and 2019 are as follows:
| Year Ended December 31, 2020 | Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||
| (In millions) | CRC (1) | Other Operations, Eliminations | CEI Consolidated | CRC (1) | Other Operations, Eliminations | CEI Consolidated | |||||||||||||||||||||||||||||
| Net cash (used in) provided by operating activities | (782) | 200 | (582) | 866 | (553) | 313 | |||||||||||||||||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||||||||||
| Purchase of property and equipment, net | (294) | 131 | (163) | (561) | 390 | (171) | |||||||||||||||||||||||||||||
| Former Caesars acquisition, net of cash acquired | — | (6,394) | (6,394) | — | — | — | |||||||||||||||||||||||||||||
| Acquisition of gaming rights | (80) | 45 | (35) | — | — | — | |||||||||||||||||||||||||||||
| Proceeds from sale of businesses, property and equipment, net of cash sold | 14 | 352 | 366 | 475 | 61 | 536 | |||||||||||||||||||||||||||||
| Proceeds from the sale of investments | — | 25 | 25 | — | 5 | 5 | |||||||||||||||||||||||||||||
| Proceeds from insurance related to property damage | — | 17 | 17 | 5 | (5) | — | |||||||||||||||||||||||||||||
| Investments in unconsolidated affiliates | — | (1) | (1) | — | (1) | (1) | |||||||||||||||||||||||||||||
| Other | — | 6 | 6 | — | — | — | |||||||||||||||||||||||||||||
| Net cash (used in) provided by investing activities | (360) | (5,819) | (6,179) | (81) | 450 | 369 | |||||||||||||||||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||||||||||||||
| Proceeds from long-term debt and revolving credit facilities | 3,938 | 5,827 | 9,765 | — | 33 | 33 | |||||||||||||||||||||||||||||
| Repayments of long-term debt and revolving credit facilities | (2,412) | (1,330) | (3,742) | (413) | (323) | (736) | |||||||||||||||||||||||||||||
| Proceeds from sale-leaseback financing arrangement | 3,219 | 5 | 3,224 | — | — | — | |||||||||||||||||||||||||||||
| Financing obligation payments | (58) | 9 | (49) | (21) | 21 | — | |||||||||||||||||||||||||||||
| Transactions with parent | (4,384) | 4,384 | — | 174 | (174) | — | |||||||||||||||||||||||||||||
| Debt issuance and extinguishment costs | (124) | (232) | (356) | — | (1) | (1) | |||||||||||||||||||||||||||||
| Proceeds from issuance of common stock | — | 2,718 | 2,718 | — | — | — | |||||||||||||||||||||||||||||
| Cash paid to settle convertible notes | — | (903) | (903) | — | — | — | |||||||||||||||||||||||||||||
| Taxes paid related to net share settlement of equity awards | — | (16) | (16) | — | (8) | (8) | |||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | — | — | — | (2) | 2 | — | |||||||||||||||||||||||||||||
| Net cash (used in) provided by financing activities | 179 | 10,462 | 10,641 | (262) | (450) | (712) | |||||||||||||||||||||||||||||
| CASH FLOWS FROM DISCONTINUED OPERATIONS: | |||||||||||||||||||||||||||||||||||
| Cash flows from operating activities | 11 | — | 11 | — | — | — | |||||||||||||||||||||||||||||
| Cash flows from investing activities | (6) | — | (6) | — | — | — | |||||||||||||||||||||||||||||
| Net cash from discontinued operations | 5 | — | 5 | — | — | — | |||||||||||||||||||||||||||||
| Change in cash, cash equivalents, and restricted cash classified as assets held for sale | (72) | 57 | (15) | (5) | 5 | — | |||||||||||||||||||||||||||||
| Effect of foreign currency exchange rates on cash | — | 129 | 129 | — | — | — | |||||||||||||||||||||||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | (1,030) | 5,029 | 3,999 | 518 | (548) | (30) | |||||||||||||||||||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 1,422 | (1,205) | 217 | 904 | (657) | 247 | |||||||||||||||||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 392 | $ | 3,824 | $ | 4,216 | $ | 1,422 | $ | (1,205) | $ | 217 | |||||||||||||||||||||||
____________________
(1)In connection with the Merger, CEOC, LLC has been contributed to CRC and the results for the periods presented have been recast as the contribution was between entities under common control.
Supplemental Consolidating Financial Information
Caesars Resort Collection, LLC
(Unaudited)
The reconciliations of net income/(loss) attributable to Caesars to Adjusted EBITDA for quarter and year ended December 31, 2020 are as follows:
| Three Months Ended December 31, 2020 | Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
| (In millions) | CRC (1) | Other Operations, Eliminations | CEI Consolidated | CRC (1) | Other Operations, Eliminations | CEI Consolidated | |||||||||||||||||||||||||||||
| Net income/(loss) attributable to Caesars | $ | (468) | $ | (87) | $ | (555) | $ | (2,264) | $ | 507 | $ | (1,757) | |||||||||||||||||||||||
| Net income/(loss) attributable to noncontrolling interests | (2) | — | (2) | (5) | 4 | (1) | |||||||||||||||||||||||||||||
| Net income from discontinued operations | (1) | — | (1) | — | — | — | |||||||||||||||||||||||||||||
| Income tax (benefit)/provision | 23 | 39 | 62 | 162 | (36) | 126 | |||||||||||||||||||||||||||||
| Other (income)/loss | (1) | (176) | (177) | 13 | (189) | (176) | |||||||||||||||||||||||||||||
| Loss on extinguishment of debt | — | 24 | 24 | — | 197 | 197 | |||||||||||||||||||||||||||||
| Interest expense | 391 | 175 | 566 | 1,437 | (263) | 1,174 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 216 | 45 | 261 | 938 | (355) | 583 | |||||||||||||||||||||||||||||
| Impairment charges | 3 | 51 | 54 | 68 | 147 | 215 | |||||||||||||||||||||||||||||
| Transaction costs and other operating costs | 15 | 11 | 26 | 169 | 99 | 268 | |||||||||||||||||||||||||||||
| Stock-based compensation expense | 16 | 7 | 23 | 68 | 10 | 78 | |||||||||||||||||||||||||||||
| Other items | 7 | 8 | 15 | 74 | (44) | 30 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 199 | $ | 97 | $ | 296 | $ | 660 | $ | 77 | $ | 737 | |||||||||||||||||||||||
____________________
(1)In connection with the Merger, CEOC, LLC has been contributed to CRC and the results for the periods presented have been recast as the contribution was between entities under common control.