Zero or negative carrying amount of goodwill

CAESARS ENTERTAINMENT, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)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.In December 2021, the Company approved a capital plan which included the planned rebranding of certain of our properties, which is expected to be substantially complete by December 31, 2022. 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. The adjusted carrying values of these trademarks, previously considered to have indefinite lives, have begun to be amortized over their respective remaining useful lives.During 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).

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| 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, 2020 | $ | —  |  |  | $ | 922  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 922  |  |
|  |  |  |  |  |  |  |  |  |  |
| Transferred to assets held for sale | —  |  |  | (18) |  |  | —  |  |  | —  |  |  | (18) |  |
| Acquired (a) | 6,873  |  |  | 2,141  |  |  | 50  |  |  | —  |  |  | 9,064  |  |
| Balance as of December 31, 2020 | 6,873  |  |  | 3,045  |  |  | 50  |  |  | —  |  |  | 9,968  |  |
| Accumulated Impairment: |  |  |  |  |  |  |  |  |  |
| Balance as of January 1, 2020 | —  |  |  | (12) |  |  | —  |  |  | —  |  |  | (12) |  |
| Impairment | —  |  |  | (100) |  |  | —  |  |  | —  |  |  | (100) |  |
| Transferred to assets held for sale | —  |  |  | 8  |  |  | —  |  |  | —  |  |  | 8  |  |
| Balance as of December 31, 2020 | —  |  |  | (104) |  |  | —  |  |  | —  |  |  | (104) |  |
| Net carrying value, as of December 31, 2020  | $ | 6,873  |  |  | $ | 2,941  |  |  | $ | 50  |  |  | $ | —  |  |  | $ | 9,864  |  |
|  |  |  |  |  |  |  |  |  |  |
| 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 (b) | $ | 6,889  |  |  | $ | 2,989  |  |  | $ | 1,198  |  |  | $ | —  |  |  | $ | 11,076  |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(a)See Note 3 for further detail.(b)$352 million of goodwill within our Regional segment is associated with reporting units with zero or negative carrying value.[Table of Contents](#i37dfc5eabc12461dbfc5ef573d80947e_7)86
