Segment and Geographic Reporting

12 Months Ended

Dec. 31, 2018

Segment and Geographic Reporting.

We report segment information based on the various industries in which our businesses operate and how we manage those businesses in accordance with our investment strategies, which may include: identifying and acquiring undervalued assets and businesses, often through the purchase of distressed securities; increasing value through management, financial or other operational changes; and managing complex legal, regulatory or financial issues, which may include bankruptcy or insolvency, environmental, zoning, permitting and licensing issues. Therefore, although many of our businesses are operated under separate local management, certain of our businesses are grouped together when they operate within a similar industry, comprising similarities in products, customers, production processes and regulatory environments, and when such businesses, when considered together, may be managed in accordance with one or more investment strategies specific to those businesses. Among other measures, we assess and measure segment operating results based on net income from continuing operations attributable to Icahn Enterprises and Icahn Enterprises Holdings. Certain terms of financings for certain of our businesses impose restrictions on the business' ability to transfer funds to us, including restrictions on dividends, distributions, loans and other transactions.

Condensed Statements of Operations

Icahn Enterprises' condensed statements of operations by reporting segment are presented below. Icahn Enterprises Holdings' condensed statements of operations are substantially the same, with immaterial differences relating to our Holding Company's interest expense.



	Year Ended December 31, 2018
	Investment			Energy			Automotive			Food Packaging			Metals			Real Estate			Home Fashion			Mining			Railcar			Holding Company			Consolidated
	(in millions)
Revenues:
Net sales	$	—		$	7,124		$	2,295		$	395		$	466		$	22		$	171		$	103		$	—		$	—		$	10,576
Other revenues from operations	—			—			563			—			—			84			—			—			—			—			647
Net gain (loss) from investment activities	635			—			—			—			—			—			—			—			—			(313		)	322
Interest and dividend income	104			2			—			1			—			16			—			1			—			24			148
(Loss) gain on disposition of assets, net	—			(6		)	(1		)	—			—			89			—			(3		)	5			—			84
Other (loss) income, net	(2		)	15			(1		)	(17		)	1			1			—			5			—			(2		)	—
	737			7,135			2,856			379			467			212			171			106			5			(291		)	11,777
Expenses:
Cost of goods sold	—			6,453			1,502			316			441			18			144			73			—			—			8,947
Other expenses from operations	—			—			474			—			—			54			—			—			1			—			529
Selling, general and administrative	12			138			1,051			57			19			22			34			27			1			25			1,386
Restructuring, net	—			5			5			9			—			—			2			—			—			—			21
Impairment	—			—			90			—			1			—			1			—			—			—			92
Interest expense	46			104			16			16			—			1			1			3			—			337			524
	58			6,700			3,138			398			461			95			182			103			2			362			11,499
Income (loss) from continuing operations before income tax (expense) benefit	679			435			(282		)	(19		)	6			117			(11		)	3			3			(653		)	278
Income tax (expense) benefit	—			(56		)	52			4			(1		)	(5		)	—			(2		)	(2		)	14			4
Net income (loss) from continuing operations	679			379			(230		)	(15		)	5			112			(11		)	1			1			(639		)	282
Less: net income (loss) from continuing operations attributable to non-controlling interests	360			141			—			(3		)	—			—			—			(2		)	—			(1		)	495
Net income (loss) from continuing operations attributable to Icahn Enterprises	$	319		$	238		$	(230	)	$	(12	)	$	5		$	112		$	(11	)	$	3		$	1		$	(638	)	$	(213	)

Supplemental information:
Capital expenditures	$	—		$	102		$	66		$	25		$	21		$	13		$	5		$	40		$	—		$	—		$	272
Depreciation and amortization	$	—		$	278		$	92		$	26		$	18		$	19		$	8		$	6		$	—		$	—		$	447



	Year Ended December 31, 2017
	Investment			Energy			Automotive			Food Packaging			Metals			Real Estate		Home Fashion			Mining			Railcar			Holding Company			Consolidated
	(in millions)
Revenues:
Net sales	$	—		$	5,988		$	2,225		$	392		$	409		$	15	$	183		$	94		$	—		$	—		$	9,306
Other revenues from operations	—			—			498			—			—			72		—			—			173			—			743
Net gain from investment activities	241			—			—			—			—			—		—			—			—			61			302
Interest and dividend income	106			1			—			—			—			7		—			1			—			12			127
(Loss) gain on disposition of assets, net	—			(3		)	5			—			—			496		—			—			1,664			1			2,163
Other (loss) income, net	(50		)	2			—			(3		)	(1		)	38		—			(2		)	—			(6		)	(22		)
	297			5,988			2,728			389			408			628		183			93			1,837			68			12,619
Expenses:
Cost of goods sold	—			5,799			1,540			297			389			11		162			60			—			—			8,258
Other expenses from operations	—			—			438			—			—			46		—			—			34			—			518
Selling, general and administrative	13			143			919			61			19			18		39			14			10			33			1,269
Restructuring, net	—			—			—			2			1			—		1			—			—			—			4
Impairment	—			—			15			1			—			2		1			—			68			—			87
Interest expense	166			109			13			13			—			2		—			6			23			323			655
	179			6,051			2,925			374			409			79		203			80			135			356			10,791
Income (loss) from continuing operations before income tax benefit (expense)	118			(63		)	(197		)	15			(1		)	549		(20		)	13			1,702			(288		)	1,828
Income tax benefit (expense)	—			338			146			(21		)	(43		)	—		—			(3		)	(531		)	643			529
Net income (loss) from continuing operations	118			275			(51		)	(6		)	(44		)	549		(20		)	10			1,171			355			2,357
Less: net income (loss) from continuing operations attributable to non-controlling interests	38			46			—			(1		)	—			—		—			1			—			—			84
Net income (loss) from continuing operations attributable to Icahn Enterprises	$	80		$	229		$	(51	)	$	(5	)	$	(44	)	$	549	$	(20	)	$	9		$	1,171		$	355		$	2,273

Supplemental information:
Capital expenditures	$	—		$	120		$	86		$	26		$	30		$	9	$	5		$	38		$	2		$	—		$	316
Depreciation and amortization	$	—		$	278		$	111		$	25		$	20		$	20	$	8		$	5		$	7		$	—		$	474



	Year Ended December 31, 2016
	Investment			Energy			Automotive			Food Packaging			Metals			Real Estate		Home Fashion			Mining			Railcar		Holding Company			Consolidated
	(in millions)
Revenues:
Net sales	$	—		$	4,782		$	2,079		$	329		$	267		$	17	$	195		$	71		$	—	$	—		$	7,740
Other revenues from operations	—			—			422			—			—			71		—			—			347		—			840
Net (loss) gain from investment activities	(1,388		)	5			—			—			—			—		—			—			—		10			(1,373		)
Interest and dividend income	112			1			—			—			—			—		—			2			—		9			124
Gain on disposition of assets, net	—			—			1			—			1			1		—			—			3		—			6
Other income (loss), net	53			(5		)	1			(1		)	1			—		1			(10		)	—		2			42
	(1,223		)	4,783			2,503			328			269			89		196			63			350		21			7,379
Expenses:
Cost of goods sold	—			4,637			1,430			249			284			13		168			56			—		—			6,837
Other expenses from operations	—			—			430			—			—			46		—			—			155		—			631
Selling, general and administrative	34			138			648			48			18			18		38			22			16		21			1,001
Restructuring	—			—			—			3			2			—		—			—			—		—			5
Impairment	—			574			1			—			1			5		2			—			—		3			586
Interest expense	230			83			7			12			—			2		—			7			62		289			692
	264			5,432			2,516			312			305			84		208			85			233		313			9,752
(Loss) income from continuing operations before income tax benefit (expense)	(1,487		)	(649		)	(13		)	16			(36		)	5		(12		)	(22		)	117		(292		)	(2,373		)
Income tax benefit (expense)	—			45			32			(8		)	16			—		—			(2		)	—		5			88
Net (loss) income from continuing operations	(1,487		)	(604		)	19			8			(20		)	5		(12		)	(24		)	117		(287		)	(2,285		)
Less: net (loss) income from continuing operations attributable to non-controlling interests	(883		)	(277		)	—			2			—			—		—			(5		)	5		—			(1,158		)
Net (loss) income from continuing operations attributable to Icahn Enterprises	$	(604	)	$	(327	)	$	19		$	6		$	(20	)	$	5	$	(12	)	$	(19	)	$	112	$	(287	)	$	(1,127	)

Supplemental information:
Capital expenditures	$	—		$	133		$	37		$	18		$	5		$	1	$	11		$	22		$	20	$	—		$	247
Depreciation and amortization	$	—		$	258		$	98		$	20		$	22		$	22	$	8		$	6		$	92	$	—		$	526

Disaggregation of Revenue

In addition to the condensed statements of operations by reporting segment above, we provide additional disaggregated revenue information for certain reportable segments below. Refer to Note 2, "Basis of Presentation and Summary of Significant Accounting Policies," for certain revenue recognition policies with respect to the following reporting segments.

Energy

Disaggregated revenue for our Energy segment net sales is presented below:



	Year Ended December 31,
	2018		2017		2016
	(in millions)
Petroleum products	$	6,773	$	5,657	$	4,426
Nitrogen fertilizer products	351		331		356
	$	7,124	$	5,988	$	4,782

Automotive

Disaggregated revenue for our Automotive segment net sales and other revenues from operations is presented below:



	Year Ended December 31,
	2018		2017		2016
	(in millions)
Automotive services	$	1,321	$	1,186	$	998
Aftermarket parts sales	1,537		1,537		1,503
	$	2,858	$	2,723	$	2,501

As discussed in Note 1, "Description of Business," we adopted FASB ASC Topic 606 effective January 1, 2018 which affected the revenue recognized on the of sale of goods on a drop ship basis. Beginning in 2018, revenue from drop ship sales is recorded on a net basis and for prior periods was recorded on a gross basis. Prior periods were not adjusted for the adoption of FASB ASC Topic 606 in our consolidated financial statements. For the year ended December 31, 2018, aftermarket parts sales (which is included in net sales in our consolidated statements of operations) and cost of goods sold would each have been higher by $62 million under prior accounting principles.

Condensed Balance Sheets

Icahn Enterprises' condensed balance sheets by reporting segment are presented below. Icahn Enterprises Holdings' condensed balance sheets are substantially the same, with immaterial differences relating to our Holding Company's other assets, debt and equity attributable to Icahn Enterprises Holdings.



	December 31, 2018
	Investment		Energy		Automotive		Food Packaging		Metals		Real Estate		Home Fashion		Mining		Railcar		Holding Company			Consolidated
	(in millions)
ASSETS
Cash and cash equivalents	$	5	$	668	$	43	$	46	$	20	$	39	$	1	$	—	$	—	$	1,834		$	2,656
Cash held at consolidated affiliated partnerships and restricted cash	2,648		—		—		1		1		26		2		—		—		4			2,682
Investments	6,867		84		59		—		—		15		—		—		—		1,312			8,337
Accounts receivable, net	—		169		149		74		48		3		31		—		—		—			474
Inventories, net	—		380		1,203		93		39		—		64		—		—		—			1,779
Property, plant and equipment, net	—		3,042		941		169		115		367		69		—		—		—			4,703
Goodwill and intangible assets, net	—		278		412		32		2		24		—		—		—		—			748
Assets held for sale	—		33		—		—		1		—		—		299		—		—			333
Other assets	1,230		84		217		96		7		34		5		—		—		11			1,684
Total assets	$	10,750	$	4,738	$	3,024	$	511	$	233	$	508	$	172	$	299	$	—	$	3,161		$	23,396
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other liabilities	$	40	$	1,025	$	905	$	164	$	56	$	41	$	35	$	—	$	—	$	178		$	2,444
Securities sold, not yet purchased, at fair value	468		—		—		—		—		—		—		—		—		—			468
Due to brokers	141		—		—		—		—		—		—		—		—		—			141
Liabilities held for sale	—		—		—		—		—		—		—		112		—		—			112
Debt	—		1,170		372		273		—		2		4		—		—		5,505			7,326
Total liabilities	649		2,195		1,277		437		56		43		39		112		—		5,683			10,491

Equity attributable to Icahn Enterprises	5,066		1,243		1,747		55		177		465		133		165		—		(2,522		)	6,529
Equity attributable to non-controlling interests	5,035		1,300		—		19		—		—		—		22		—		—			6,376
Total equity	10,101		2,543		1,747		74		177		465		133		187		—		(2,522		)	12,905
Total liabilities and equity	$	10,750	$	4,738	$	3,024	$	511	$	233	$	508	$	172	$	299	$	—	$	3,161		$	23,396



	December 31, 2017
	Investment		Energy		Automotive		Food Packaging		Metals		Real Estate		Home Fashion		Mining		Railcar		Holding Company			Discontinued Operations		Consolidated
	(in millions)
ASSETS
Cash and cash equivalents	$	17	$	482	$	52	$	16	$	24	$	32	$	—	$	15	$	—	$	526		$	—	$	1,164
Cash held at consolidated affiliated partnerships and restricted cash	734		—		—		2		5		2		4		—		—		—			—		747
Investments	9,532		83		—		—		—		16		—		—		—		384			—		10,015
Accounts receivable, net	—		179		128		78		40		3		35		10		—		—			—		473
Inventories, net	—		364		1,145		92		33		—		66		30		—		—			—		1,730
Property, plant and equipment, net	—		3,234		958		170		110		454		72		188		—		—			—		5,186
Goodwill and intangible assets, net	—		298		505		36		3		29		—		—		—		—			—		871
Assets held for sale	—		—		—		—		2		—		—		—		14		—			10,247		10,263
Other assets	516		60		223		93		9		395		6		22		—		28			—		1,352
Total assets	$	10,799	$	4,700	$	3,011	$	487	$	226	$	931	$	183	$	265	$	14	$	938		$	10,247	$	31,801
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other liabilities	$	1,302	$	1,125	$	944	$	172	$	43	$	63	$	34	$	45	$	—	$	243		$	—	$	3,971
Securities sold, not yet purchased, at fair value	1,023		—		—		—		—		—		—		—		—		—			—		1,023
Due to brokers	1,057		—		—		—		—		—		—		—		—		—			—		1,057
Liabilities held for sale	—		—		—		—		—		—		—		—		—		—			7,010		7,010
Debt	—		1,166		340		273		1		22		5		58		—		5,507			—		7,372
Total liabilities	3,382		2,291		1,284		445		44		85		39		103		—		5,750			7,010		20,433

Equity attributable to Icahn Enterprises	3,052		1,098		1,727		28		182		846		144		138		14		(4,821		)	2,698		5,106
Equity attributable to non-controlling interests	4,365		1,311		—		14		—		—		—		24		—		9			539		6,262
Total equity	7,417		2,409		1,727		42		182		846		144		162		14		(4,812		)	3,237		11,368
Total liabilities and equity	$	10,799	$	4,700	$	3,011	$	487	$	226	$	931	$	183	$	265	$	14	$	938		$	10,247	$	31,801

Geographic Information

The following table presents our consolidated geographic net sales from external customers, other revenues from operations and property, plant and equipment, net for the periods indicated:



	Net Sales						Other Revenues From Operations						Property, Plant and Equipment, Net
	Year Ended December 31,						Year Ended December 31,						December 31,
	2018		2017		2016		2018		2017		2016		2018		2017
	(in millions)
United States	$	10,172	$	8,893	$	7,412	$	629	$	716	$	791	$	4,432	$	4,776
International	404		413		328		18		27		49		271		410
	$	10,576	$	9,306	$	7,740	$	647	$	743	$	840	$	4,703	$	5,186

Geographic locations for net sales and other revenues from operations are based on locations of the customers and geographic locations for property, plant, and equipment are based on the locations of the assets.