Investments and Related Matters

12 Months Ended

Dec. 31, 2018

Investments and Related Matters [Abstract]

Investments and Related Matters.

Investment

Investments and securities sold, not yet purchased consist of equities, bonds, bank debt and other corporate obligations, all of which are reported at fair value in our consolidated balance sheets. These investments are considered trading securities. In addition, our Investment segment has certain derivative transactions which are discussed in Note 6, “Financial Instruments." The carrying value and detail by security type, including business sector for equity securities, with respect to investments and securities sold, not yet purchased held by our Investment segment consist of the following:



	December 31,
	2018		2017
Assets	(in millions)
Investments:
Equity securities:
Basic materials	$	414	$	1,170
Consumer, non-cyclical	2,161		2,551
Consumer, cyclical	1,161		777
Energy	1,598		1,489
Financial	167		2,185
Technology	1,040		833
Other	145		372
	6,686		9,377
Corporate debt securities	181		155
	$	6,867	$	9,532
Liabilities
Securities sold, not yet purchased, at fair value:
Equity securities:
Consumer, non-cyclical	$	57	$	101
Consumer, cyclical	106		667
Energy	305		110
Industrial	—		110
	468		988
Corporate debt securities	—		35
	$	468	$	1,023

The portion of unrealized (losses) gains that relates to securities still held by our Investment segment, primarily equity securities, was $(800) million, $1,413 million and $340 million for the years ended December 31, 2018, 2017 and 2016, respectively.

As of December 31, 2018, the Investment Funds owned approximately 27.9% of the outstanding common stock of Hertz. Our Investment segment recorded net (losses) gains of $(197) million, $13 million and $(389) million for the years ended December 31, 2018, 2017 and 2016, respectively, with respect to its investment in Hertz. As of December 31, 2018 and 2017, the aggregate fair value of our Investment segment's investment in Hertz was $320 million and $517 million, respectively.

The Investment Funds also owned approximately 18.1% of the outstanding common stock of Herbalife Ltd. ("Herbalife") as of December 31, 2018. We are deemed to have significant influence with respect to our investment in Herbalife after considering the collective ownership in Herbalife by us and affiliates of Mr. Icahn, as well as our collective representation on the board of directors of Herbalife. Our Investment segment recorded net gains (losses) of $864 million, $357 million and $(113) million for the years ended December 31, 2018, 2017 and 2016, respectively, with respect to its investment in Herbalife. As of December 31, 2018 and 2017, the aggregate fair value of our Investment segment's investment in Herbalife was approximately $1.7 billion and $1.2 billion, respectively.

Herbalife and Hertz each file annual, quarterly and current reports and proxy and information statements with the SEC, which are publicly available.

Other Segments and Holding Company

With the exception of certain equity method investments at our operating subsidiaries, our investments are measured at fair value in our consolidated balance sheets. The carrying value of investments held by our Other segments and our Holding Company consist of the following:



	December 31,
	2018		2017
	(in millions)
Equity method investments	$	143	$	83
Other investments (measured at fair value)	1,327		400
	$	1,470	$	483

The portion of unrealized (losses) gains that relates to equity securities still held by our Other segments and Holding Company was $(339) million, $67 million and $0 million for the years ended December 31, 2018, 2017 and 2016, respectively.