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Investments

3 Months Ended

Mar. 31, 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:


	March 31,		December 31,
	2020		2019
	(in millions)
Assets
Investments:
Equity securities:
Basic materials	$	181	$	281
Consumer, non-cyclical		1,478		2,085
Consumer, cyclical		1,881		2,427
Energy		1,758		1,717
Technology		2,061		2,425
Industrial		61		127
		7,420		9,062
Corporate debt securities		99		145
	$	7,519	$	9,207
Liabilities
Securities sold, not yet purchased, at fair value:
Equity securities:
Basic materials	$	23	$	209
Consumer, non-cyclical		—		29
Consumer, cyclical		188		379
Energy		—		124
Financial		84		152
Technology		138		217
Communication		26		80
	$	459	$	1,190

The portion of unrealized (losses) gains that relates to securities still held by our Investment segment, primarily equity securities, was $(4,170) million and $558 million for three months ended March 31, 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 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
	March 31,	March 31,		December 31,		Three Months Ended March 31,
	2020	2020		2019		2020		2019
		(in millions)
Herbalife Nutrition Ltd.	23.9%	$	1,027	$	1,343	$	(515)	$	(168)
Hertz Global Holdings, Inc.	38.9%		342		551		(335)		95
Caesars Entertainment Corporation	16.7%		772		1,243		(595)		26
		$	2,141	$	3,137	$	(1,445)	$	(47)

Each of these investees file annual, quarterly and current reports, and proxy and information statements with the SEC. During the second quarter of 2019, we agreed to vote our Caesars’ shares in favor of the proposed merger between Caesars and Eldorado Resorts, Inc. (“Eldorado”). Pursuant to the merger, Caesars will merge into a subsidiary of Eldorado and Caesars stockholders will have the right, subject to certain allocation limitations, to elect to receive cash, stock in Eldorado, or a combination of cash and stock. Upon consummation of the merger, depending on what consideration we and other stockholders elect, we expect to receive a combination of cash and Eldorado shares. The transaction has not yet been consummated as of March 31, 2020.

The following table contains summarized financial information for Herbalife Nutrition Ltd., which is a significant investee as defined by SEC Regulations, as if such investee was 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.


	Three Months Ended March 31,
	2020		2019
	(in millions)
Net sales	$	1,262	$	1,172
Cost of goods sold		246		242
Net income (loss)		46		96
Net income (loss) attributable to shareholders		46		96

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:


	March 31,		December 31,
	2020		2019
	(in millions)
Equity method investments	$	199	$	201
Other investments (measured at fair value)		479		537
	$	678	$	738

The portion of unrealized losses that relates to equity securities still held by our other segments and Holding Company was $312 million and $154 million for the three months ended March 31, 2020 and 2019, respectively.