Segment Reporting

6 Months Ended

Jun. 30, 2019

Segment 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.



	Three Months Ended June 30, 2019
	Investment			Energy			Automotive			Food Packaging			Metals			Real Estate		Home Fashion			Mining			Holding Company			Consolidated
	(in millions)
Revenues:
Net sales	$	—		$	1,687		$	590		$	97		$	95		$	9	$	44		$	66		$	—		$	2,588
Other revenues from operations	—			—			154			—			—			18		—			—			—			172
Net loss from investment activities	(311		)	—			—			—			—			—		—			—			(326		)	(637		)
Interest and dividend income	40			1			—			—			—			—		—			—			17			58
Other income, net	—			12			1			1			1			—		—			—			—			15
	(271		)	1,700			745			98			96			27		44			66			(309		)	2,196
Expenses:
Cost of goods sold	—			1,486			406			75			93			7		39			23			—			2,129
Other expenses from operations	—			—			124			—			—			13		—			—			—			137
Selling, general and administrative	3			34			256			14			4			7		9			6			6			339
Restructuring, net	—			—			2			—			2			—		—			—			—			4
Impairment	—			—			—			1			—			—		—			—			—			1
Interest expense	21			27			5			5			—			—		—			1			92			151
	24			1,547			793			95			99			27		48			30			98			2,761
(Loss) income from continuing operations before income tax (expense) benefit	(295		)	153			(48		)	3			(3		)	—		(4		)	36			(407		)	(565		)
Income tax (expense) benefit	—			(37		)	10			(2		)	—			1		—			(1		)	21			(8		)
Net (loss) income from continuing operations	(295		)	116			(38		)	1			(3		)	1		(4		)	35			(386		)	(573		)
Less: net (loss) income from continuing operations attributable to non-controlling interests	(147		)	40			—			1			—			—		—			7			—			(99		)
Net (loss) income from continuing operations attributable to Icahn Enterprises	$	(148	)	$	76		$	(38	)	$	—		$	(3	)	$	1	$	(4	)	$	28		$	(386	)	$	(474	)

Supplemental information:
Capital expenditures	$	—		$	26		$	9		$	3		$	12		$	10	$	1		$	6		$	—		$	67
Depreciation and amortization	$	—		$	94		$	24		$	8		$	5		$	5	$	1		$	—		$	—		$	137



	Three Months Ended June 30, 2018
	Investment			Energy			Automotive			Food Packaging			Metals			Real Estate		Home Fashion			Mining			Railcar			Holding Company			Consolidated
	(in millions)
Revenues:
Net sales	$	—		$	1,914		$	592		$	104		$	132		$	6	$	45		$	26		$	—		$	—		$	2,819
Other revenues from operations	—			—			145			—			—			22		—			—			—			—			167
Net gain from investment activities	372			—			—			—			—			—		—			—			—			38			410
Interest and dividend income	28			1			—			—			—			5		—			—			—			2			36
Other (loss) income, net	(1		)	(4		)	—			(7		)	(1		)	—		1			5			—			(2		)	(9		)
	399			1,911			737			97			131			33		46			31			—			38			3,423
Expenses:
Cost of goods sold	—			1,778			383			80			124			4		39			19			—			—			2,427
Other expenses from operations	—			—			118			—			—			15		—			—			1			—			134
Selling, general and administrative	1			39			258			15			4			7		9			6			1			5			345
Restructuring, net	—			—			—			—			—			—		1			—			—			—			1
Impairment	—			—			3			—			—			—		—			—			—			—			3
Interest expense	1			27			5			3			—			—		—			—			—			83			119
	2			1,844			767			98			128			26		49			25			2			88			3,029
Income (loss) from continuing operations before income tax (expense) benefit	397			67			(30		)	(1		)	3			7		(3		)	6			(2		)	(50		)	394
Income tax (expense) benefit	—			(10		)	12			—			—			—		—			(1		)	(2		)	17			16
Net income (loss) from continuing operations	397			57			(18		)	(1		)	3			7		(3		)	5			(4		)	(33		)	410
Less: net income (loss) from continuing operations attributable to non-controlling interests	240			22			—			(1		)	—			—		—			1			—			—			262
Net (loss) income from continuing operations attributable to Icahn Enterprises	$	157		$	35		$	(18	)	$	—		$	3		$	7	$	(3	)	$	4		$	(4	)	$	(33	)	$	148

Supplemental information:
Capital expenditures	$	—		$	23		$	18		$	6		$	1		$	4	$	2		$	10		$	—		$	—		$	64
Depreciation and amortization	$	—		$	86		$	25		$	6		$	4		$	5	$	2		$	2		$	—		$	—		$	130



	Six Months Ended June 30, 2019
	Investment			Energy			Automotive			Food Packaging			Metals			Real Estate		Home Fashion			Mining			Holding Company			Consolidated
	(in millions)
Revenues:
Net sales	$	—		$	3,173		$	1,140		$	192		$	188		$	11	$	83		$	101		$	—		$	4,888
Other revenues from operations	—			—			297			—			—			37		—			—			—			334
Net loss from investment activities	(920		)	—			—			—			—			—		—			—			(391		)	(1,311		)
Interest and dividend income	82			1			—			—			—			—		—			1			38			122
Other (loss) income, net	(1		)	13			5			(2		)	1			2		—			—			—			18
	(839		)	3,187			1,442			190			189			50		83			102			(353		)	4,051
Expenses:
Cost of goods sold	—			2,789			781			150			185			9		72			43			—			4,029
Other expenses from operations	—			—			243			—			—			25		—			—			—			268
Selling, general and administrative	5			71			508			29			8			12		19			13			10			675
Restructuring, net	—			—			2			7			2			—		—			—			—			11
Impairment	—			—			—			1			—			—		—			—			—			1
Interest expense	39			53			10			9			—			—		—			3			176			290
	44			2,913			1,544			196			195			46		91			59			186			5,274
(Loss) income from continuing operations before income tax (expense) benefit	(883		)	274			(102		)	(6		)	(6		)	4		(8		)	43			(539		)	(1,223		)
Income tax (expense) benefit	—			(68		)	22			2			—			1		—			(2		)	31			(14		)
Net (loss) income from continuing operations	(883		)	206			(80		)	(4		)	(6		)	5		(8		)	41			(508		)	(1,237		)
Less: net (loss) income from continuing operations attributable to non-controlling interests	(440		)	64			—			(1		)	—			—		—			8			—			(369		)
Net (loss) income from continuing operations attributable to Icahn Enterprises	$	(443	)	$	142		$	(80	)	$	(3	)	$	(6	)	$	5	$	(8	)	$	33		$	(508	)	$	(868	)

Supplemental information:
Capital expenditures	$	—		$	55		$	22		$	10		$	17		$	16	$	2		$	10		$	—		$	132
Depreciation and amortization	$	—		$	177		$	48		$	14		$	9		$	9	$	3		$	—		$	—		$	260



	Six Months Ended June 30, 2018
	Investment			Energy			Automotive			Food Packaging			Metals		Real Estate		Home Fashion			Mining			Railcar			Holding Company			Consolidated
	(in millions)
Revenues:
Net sales	$	—		$	3,451		$	1,141		$	201		$	250	$	7	$	87		$	46		$	—		$	—		$	5,183
Other revenues from operations	—			—			282			—			—		43		—			—			—			—			325
Net gain from investment activities	782			—			—			—			—		—		—			—			—			60			842
Interest and dividend income	46			1			—			—			—		10		—			—			—			5			62
Other (loss) income, net	(1		)	(2		)	—			(13		)	—		—		1			5			5			(1		)	(6		)
	827			3,450			1,423			188			250		60		88			51			5			64			6,406
Expenses:
Cost of goods sold	—			3,163			744			157			234		5		75			36			—			—			4,414
Other expenses from operations	—			—			231			—			—		27		—			—			1			—			259
Selling, general and administrative	2			71			516			30			9		13		18			12			1			11			683
Restructuring, net	—			—			—			—			—		—		3			—			—			—			3
Impairment	—			—			3			—			—		—		—			—			—			—			3
Interest expense	27			54			8			7			—		1		—			2			—			167			266
	29			3,288			1,502			194			243		46		96			50			2			178			5,628
Income (loss) from continuing operations before income tax (expense) benefit	798			162			(79		)	(6		)	7		14		(8		)	1			3			(114		)	778
Income tax (expense) benefit	—			(24		)	27			2			—		—		—			(2		)	(2		)	(2		)	(1		)
Net income (loss) from continuing operations	798			138			(52		)	(4		)	7		14		(8		)	(1		)	1			(116		)	777
Less: net income (loss) from continuing operations attributable to non-controlling interests	480			53			—			(1		)	—		—		—			(1		)	—			—			531
Net income (loss) from continuing operations attributable to Icahn Enterprises	$	318		$	85		$	(52	)	$	(3	)	$	7	$	14	$	(8	)	$	—		$	1		$	(116	)	$	246

Supplemental information:
Capital expenditures	$	—		$	43		$	37		$	11		$	2	$	7	$	3		$	23		$	—		$	—		$	126
Depreciation and amortization	$	—		$	169		$	49		$	13		$	9	$	10	$	4		$	4		$	—		$	—		$	258

Disaggregation of Revenue

In addition to the condensed statements of operations by reporting segment above, we provide additional disaggregated revenue information for and Energy and Automotive segments below.

Energy

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(in millions)
Petroleum products	$	1,549	$	1,821	$	2,943	$	3,278
Nitrogen fertilizer products	138		93		230		173
	$	1,687	$	1,914	$	3,173	$	3,451

Automotive

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(in millions)
Automotive services	$	345	$	334	$	672	$	651
Aftermarket parts sales	399		403		765		772
	$	744	$	737	$	1,437	$	1,423

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.



	June 30, 2019
	Investment		Energy		Automotive		Food Packaging		Metals		Real Estate		Home Fashion		Mining		Holding Company			Consolidated
	(in millions)
ASSETS
Cash and cash equivalents	$	8	$	540	$	53	$	22	$	3	$	41	$	4	$	—	$	3,337		$	4,008
Cash held at consolidated affiliated partnerships and restricted cash	651		—		—		1		1		2		1		—		8			664
Investments	8,191		82		107		—		—		15		—		—		463			8,858
Accounts receivable, net	—		168		170		82		44		4		40		—		—			508
Inventories, net	—		390		1,231		111		39		—		80		—		—			1,851
Property, plant and equipment, net	—		2,950		939		166		124		382		69		—		—			4,630
Goodwill and intangible assets, net	—		268		388		31		14		19		22		—		—			742
Assets held for sale	—		6		—		—		1		—		—		393		—			400
Other assets	1,508		227		736		134		20		32		21		—		9			2,687
Total assets	$	10,358	$	4,631	$	3,624	$	547	$	246	$	495	$	237	$	393	$	3,817		$	24,348
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other liabilities	$	923	$	1,076	$	1,374	$	206	$	66	$	41	$	62	$	—	$	186		$	3,934
Securities sold, not yet purchased, at fair value	146		—		—		—		—		—		—		—		—			146
Liabilities held for sale	—		—		—		—		—		—		—		164		—			164
Debt	—		1,195		406		270		10		2		20		—		6,755			8,658
Total liabilities	1,069		2,271		1,780		476		76		43		82		164		6,941			12,902

Equity attributable to Icahn Enterprises	4,624		1,317		1,844		54		170		452		155		199		(3,124		)	5,691
Equity attributable to non-controlling interests	4,665		1,043		—		17		—		—		—		30		—			5,755
Total equity	9,289		2,360		1,844		71		170		452		155		229		(3,124		)	11,446
Total liabilities and equity	$	10,358	$	4,631	$	3,624	$	547	$	246	$	495	$	237	$	393	$	3,817		$	24,348



	December 31, 2018
	Investment		Energy		Automotive		Food Packaging		Metals		Real Estate		Home Fashion		Mining		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	—		3,027		941		169		115		367		69		—		—			4,688
Goodwill and intangible assets, net	—		278		412		32		2		24		—		—		—			748
Assets held for sale	—		33		—		—		1		—		—		299		—			333
Other assets	1,230		192		217		96		7		34		5		—		11			1,792
Total assets	$	10,750	$	4,831	$	3,024	$	511	$	233	$	508	$	172	$	299	$	3,161		$	23,489
LIABILITIES AND EQUITY
Accounts payable, accrued expenses and other liabilities	$	181	$	1,043	$	905	$	164	$	56	$	41	$	35	$	—	$	178		$	2,603
Securities sold, not yet purchased, at fair value	468		—		—		—		—		—		—		—		—			468
Liabilities held for sale	—		—		—		—		—		—		—		112		—			112
Debt	—		1,170		372		273		—		2		4		—		5,505			7,326
Total liabilities	649		2,213		1,277		437		56		43		39		112		5,683			10,509

Equity attributable to Icahn Enterprises	5,066		1,274		1,747		55		177		465		133		165		(2,522		)	6,560
Equity attributable to non-controlling interests	5,035		1,344		—		19		—		—		—		22		—			6,420
Total equity	10,101		2,618		1,747		74		177		465		133		187		(2,522		)	12,980
Total liabilities and equity	$	10,750	$	4,831	$	3,024	$	511	$	233	$	508	$	172	$	299	$	3,161		$	23,489