Net Income Per LP Unit

3 Months Ended

Mar. 31, 2016

Net Income Per LP Unit.

The following table sets forth the allocation of net income attributable to Icahn Enterprises allocable to limited partners and the computation of basic and diluted income per LP unit of Icahn Enterprises for the periods indicated:



	Three Months Ended March 31,
	2016			2015
	(in millions, except per unit data)
Net (loss) income attributable to Icahn Enterprises	$	(837	)	$	161
Net (loss) income attributable to Icahn Enterprises allocable to limited partners (98.01% allocation)	$	(820	)	$	158

Basic (loss) income per LP unit	$	(6.21	)	$	1.28
Basic weighted average LP units outstanding	132			123

Dilutive effect of unit distribution declared:
Income				$	—
Units				1

Diluted (loss) income per LP unit	$	(6.21	)	$	1.27
Diluted weighted average LP units outstanding	132			124

LP Unit Issuance

As disclosed in Note 3, "Related Party Transactions," pursuant to a certain contribution agreement, on February 29, 2016, we contributed 685,367 newly issued depositary units of Icahn Enterprises to IRL in exchange for the remaining 25% economic interest in ARL.

LP Unit Distributions

On February 23, 2016, Icahn Enterprises declared a quarterly distribution in the amount of $1.50 per depositary unit in which each depositary unit holder had the option to make an election to receive either cash or additional depositary units. As a result, on April 12, 2016, Icahn Enterprises distributed an aggregate 2,824,186 depositary units to unit holders electing to receive depositary units in connection with this distribution.

Mr. Icahn and his affiliates elected to receive a majority of their proportionate share of these distributions in depositary units. As of May 5, 2016, Mr. Icahn and his affiliates owned 89.3% of Icahn Enterprises outstanding depositary units.

Because the depositary unit holder has the election to receive the distribution either in cash or additional depositary units, we recorded a unit distribution liability of $202 million on our condensed consolidated balance sheets as the unit distribution had not been made as of March 31, 2016. In addition, the unit distribution liability, which is included in accrued expenses and other liabilities in the condensed consolidated balance sheets, is considered a potentially dilutive security and is considered in the calculation of diluted income per LP unit as disclosed above. However, as their effect would be anti-dilutive, 1 million weighted average units have been excluded from the calculation of diluted income per LP unit for the three months ended March 31, 2016. Any difference between the liability recorded and the amount representing the aggregate value of the number of depositary units distributed and cash paid would be charged to equity.