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Investments

6 Months Ended

Jun. 30, 2020

4. Investments.

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 condensed 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:


	June 30,		December 31,
	2020		2019

	(in millions)
Assets
Investments:
Equity securities:
Basic materials	$	—	$	281
Consumer, non-cyclical		1,724		2,085
Consumer, cyclical		3,037		2,427
Energy		2,634		1,717
Technology		1,115		2,425
Industrial		73		127
		8,583		9,062
Corporate debt securities		98		145
	$	8,681	$	9,207
Liabilities
Securities sold, not yet purchased, at fair value:
Equity securities:
Basic materials	$	—	$	209
Consumer, non-cyclical		716		29
Consumer, cyclical		831		379
Energy		123		124
Financial		—		152
Technology		149		217
Communication		—		80
	$	1,819	$	1,190

The portion of unrealized gains (losses) that relates to securities still held by our Investment segment, primarily equity securities, was $2,566 million and $(118) million for the three months ended June 30, 2020 and 2019, respectively, and $(1,066) million and $434 million for six months ended June 30, 2020 and 2019, respectively.

After considering specific facts and circumstances, including the collective ownership in entities by the Investment Funds and affiliates of Mr. Icahn, as well as their collective representation on each of the boards of directors, we have determined that we have/had the ability to exercise significant influence over the operating and financial policies of certain investees below. The following table summarizes our direct ownership in such investees as well as certain financial information with respect to such investees in our condensed consolidated financial statements during the respective periods in which we possessed the ability to exercise significant influence over the operating and financial policies of the investee.


	Voting	Fair Value of				Gains (Losses)
	Interests	Investment				Recognized in Income
	June 30,	June 30,		December 31,		Three Months Ended June 30,				Six Months Ended June 30,
	2020	2020		2019		2020		2019		2020		2019

		(in millions)
Herbalife Nutrition Ltd.	23.8%	$	1,585	$	1,343	$	557	$	(288)	$	42	$	(456)
Hertz Global Holdings, Inc.	0.0%		—		551		(302)		(27)		(637)		68
Caesars Entertainment Corporation	16.7%		1,386		1,243		613		249		18		275
		$	2,971	$	3,137	$	868	$	(66)	$	(577)	$	(113)

Each of these investees file annual, quarterly and current reports, and proxy and information statements with the SEC. During the second quarter of 2020, the Investment Funds sold their entire investment in Hertz. Prior to the sale of its investment in Hertz, the Investment Funds owned approximately 38.9% of the common stock of Hertz. In addition, during July 2020, the Investment Funds sold their entire investment in Caesars Entertainment Corporation (“Caesars”). Due to the nature of our Investment segment’s operations, the sales of Hertz and Caesars are deemed to be in the ordinary course of business.

The following table contains summarized financial information for Herbalife Nutrition Ltd. and Hertz, which were each significant investees as defined by SEC Regulations, as if such investees were consolidated in our financial statements during the respective periods in which we possessed the ability to exercise significant influence over the operating and financial policies of.

Herbalife Nutrition Ltd.


	Six Months Ended June 30,
	2020		2019

	(in millions)
Net sales	$	2,609	$	2,412
Cost of goods sold		518		485
Net income (loss)		161		173
Net income (loss) attributable to shareholders		161		173

Hertz Global Holdings, Inc.


	Six Months Ended June 30,
	2020		2019

	(in millions)
Other revenue from operations	$	2,755	$	4,618
Other expenses from operations		3,231		3,881
Net income (loss)		(1,209)		(107)
Net income (loss) attributable to shareholders		(1,203)		(108)

Other Segments and Holding Company

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


	June 30,		December 31,
	2020		2019

	(in millions)
Equity method investments	$	193	$	201
Other investments (measured at fair value)		624		537
	$	817	$	738

The portion of unrealized gains (losses) that relates to equity securities still held by our other segments and Holding Company was $146 million and $(326) million for the three months ended June 30, 2020 and 2019, respectively, and $(166) million and $(480) million for the six months ended June 30, 2020 and 2019, respectively.