Net Income Per LP Unit

12 Months Ended

Dec. 31, 2020

Earnings Per Unit [Abstract]

Net Income Per LP Unit

12. Net Income Per LP Unit

The components of the computation of basic and diluted income (loss) per LP unit from continuing and discontinued operations of Icahn Enterprises are as follows:

	Year Ended December 31,
	2020		2019		2018
	(in millions, except per unit amounts)
Net loss attributable to Icahn Enterprises from continuing operations	$	(1,653)	$	(1,066)	$	(238)
Net loss attributable to Icahn Enterprises from continuing operations allocated to limited partners (98.01% allocation)	$	(1,620)	$	(1,045)	$	(233)
Net (loss) income attributable to Icahn Enterprises from discontinued operations	$	—	$	(32)	$	1,720
Less: net loss attributable to Icahn Enterprises from discontinued operations allocated 100% to general partner		—		—		598
Net (loss) income attributable to Icahn Enterprises from discontinued operations allocable to limited partners	$	—	$	(32)	$	2,318
Net loss (income) attributable to Icahn Enterprises from discontinued operations allocated to limited partners (98.01% allocation)	$	—	$	(31)	$	2,272
Basic and diluted (loss) income per LP unit:
Continuing operations	$	(7.33)	$	(5.23)	$	(1.29)
Discontinued operations		—		(0.15)		12.62
Basic and diluted (loss) income per LP unit	$	(7.33)	$	(5.38)	$	11.33
Basic and diluted weighted average LP units outstanding		221		200		180

GP Allocation

As disclosed in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies - Acquisition, Investments and Disposition of Entities under Common Control,” upon the sale of common control entities, such as Federal-Mogul and ARI, a portion of the gain or loss on the sale is first allocated to the general partner in order to restore the general partners’ capital account for cumulative charges or credits relating to periods prior to our obtaining a controlling interest in such entities from Mr. Icahn and his affiliates. After such general partner allocation, the remaining gain is allocated among our general partner and limited partners, in accordance with their respective ownership percentages.

LP Unit Transactions

The following table summarizes the changes in Icahn Enterprises outstanding depositary units during each of the years ended December 31, 2020, 2019 and 2018.

	Mr. Icahn and	Public
	Affiliates	Unitholders	Total
December 31, 2017	157,898,582	15,665,725	173,564,307
Unit distributions	17,543,006	235,944	17,778,950
2017 Incentive Plan	—	22,840	22,840
December 31, 2018	175,441,588	15,924,509	191,366,097
Unit distributions	21,608,064	290,789	21,898,853
2017 Incentive Plan	—	19,259	19,259
2019 at-the-market offering	—	794,349	794,349
December 31, 2019	197,049,652	17,028,906	214,078,558
Unit distributions	24,902,568	449,610	25,352,178
2019 at-the-market offering	—	1,908,099	1,908,099
Sale to Brett Icahn	(202,758)	202,758	—
December 31, 2020	221,749,462	19,589,373	241,338,835

Unit Distributions

During each of the years ended December 31, 2020, 2019 and 2018, we declared four quarterly distributions. Depositary unitholders were given the option to make an election to receive the distributions in either cash or additional depositary units. If a holder did not make an election, it was automatically deemed to have elected to receive the distributions in cash. In connection with these distributions, during 2020, aggregate cash distributions to all depositary unitholders was $516 million, of which $422 million relates to the distribution declared in the first quarter of 2020. Mr. Icahn and his affiliates have historically elected to receive their distributions in additional units; however, in the first quarter of 2020, they received their distribution in cash. For the distributions declared in the second, third and fourth quarters of 2020, Mr. Icahn and his affiliates elected to receive their distributions in additional units and cash distributions paid to other depositary unitholders was $30 million, $31 million and $33 million, respectively. Mr. Icahn and his affiliates may in the future elect to receive all or a portion of their distributions in cash or in additional depositary units.

2019 At-The-Market Offering

On May 2, 2019, Icahn Enterprises announced the commencement of its “at-the-market” offering pursuant to its Open Market Sale Agreement, pursuant to which Icahn Enterprises may sell its depositary units, from time to time, for up to $400 million in aggregate sale proceeds. During the years ended December 31, 2020 and 2019, we received gross proceeds of $101 million and $55 million, respectively, in connection with this offering. As of December 31, 2020, Icahn Enterprises may sell its depositary units for up to an additional $244 million in aggregate sale proceeds pursuant to this agreement. No assurance can be made that any or all amounts will be sold during the term of the program.

2017 Incentive Plan

During the years ended December 31, 2020, 2019 and 2018, Icahn Enterprises distributed depositary units, net of payroll withholdings, with respect to certain restricted depositary units and deferred unit awards that vested during the respective periods in connection with the Icahn Enterprises L.P. 2017 Long Term Incentive Plan (the “2017 Incentive Plan”). The aggregate impact of the 2017 Incentive Plan is not material with respect to our consolidated financial statements, including the calculation of potentially dilutive units and diluted income per LP unit.