Icahn Enterprises(US:IEP)2024-11-08 21:25Equity and Financial Position - Equity attributable to Icahn Enterprises decreased from $3,208 million in December 2023 to $2,645 million in September 2024[9] - Total equity decreased from $6,073 million in December 2023 to $4,827 million in September 2024[9] - Total liabilities and equity decreased from $20,858 million in December 2023 to $17,443 million in September 2024[9] - Total equity attributable to Icahn Enterprises as of September 30, 2024, was $4,827 million, with a balance of $2,645 million in limited partners' equity and $2,182 million in non-controlling interests[16] - Total assets increased from $17.443 billion in 2023 to $20.858 billion in 2024, reflecting a growth of 19.6%[149][150] - Cash and cash equivalents rose from $2.294 billion in 2023 to $2.951 billion in 2024, a 28.6% increase[149][150] - Investments grew from $2.585 billion in 2023 to $3.012 billion in 2024, up 16.5%[149][150] - Total liabilities increased from $12.616 billion in 2023 to $14.785 billion in 2024, a 17.2% rise[149][150] - Debt rose from $6.447 billion in 2023 to $7.207 billion in 2024, up 11.8%[149][150] - Equity attributable to Icahn Enterprises increased from $2.645 billion in 2023 to $3.208 billion in 2024, a 21.3% growth[149][150] - Property, plant, and equipment net value grew from $3.865 billion in 2023 to $3.969 billion in 2024, up 2.7%[149][150] - Goodwill and intangible assets net value increased from $712 million in 2023 to $754 million in 2024, up 5.9%[149][150] - Inventories net value rose from $883 million in 2023 to $1.047 billion in 2024, a 18.6% increase[149][150] - Accounts receivable net value increased from $476 million in 2023 to $485 million in 2024, up 1.9%[149][150] Revenue and Net Income - Net sales for the three months ended September 30, 2024, were $2,221 million, compared to $2,991 million for the same period in 2023[10] - Net income (loss) attributable to Icahn Enterprises for the three months ended September 30, 2024, was $58 million, compared to a loss of $24 million for the same period in 2023[10] - Basic and diluted income (loss) per LP unit for the three months ended September 30, 2024, was $0.05, compared to a loss of $0.01 for the same period in 2023[10] - Comprehensive income (loss) attributable to Icahn Enterprises for the three months ended September 30, 2024, was $28 million, compared to a loss of $12 million for the same period in 2023[12] - Net income for the period ending September 30, 2024, was $80 million, with $22 million from operations and $58 million from other sources[16] - Net income (loss) attributable to Icahn Enterprises for September 2024 was $22 million, compared to a loss of $6 million in September 2023[130] - Basic and diluted income (loss) per LP unit for September 2024 was $0.05, compared to a loss of $0.01 in September 2023[130] - Net sales for the Energy segment reached $1.834 billion, contributing significantly to the total consolidated net sales of $2.221 billion[140] - The Automotive segment reported net sales of $206 million and other revenues from operations of $168 million, totaling $374 million in revenues[140] - Net gain from investment activities was $257 million, primarily driven by the Investment segment[140] - Net income attributable to Icahn Enterprises was $22 million, with the Investment segment contributing $192 million in net income[140] - Net sales for the Energy segment were $2.522 billion, contributing significantly to the consolidated net sales of $2.991 billion[141] - The Automotive segment reported other revenues from operations of $180 million, adding to the total other revenues of $203 million[141] - Net loss from investment activities was $332 million, impacting the overall financial performance[141] - Net loss attributable to Icahn Enterprises was $6 million, with the Energy segment showing a net income of $235 million[141] - Net sales for the nine months ended September 30, 2024, were $6.827 billion, with the Energy segment contributing $5.663 billion and the Automotive segment contributing $637 million[143] - Other revenues from operations totaled $566 million, with the Automotive segment contributing $504 million and the Real Estate segment contributing $59 million[143] - Net loss from investment activities was $318 million, primarily driven by the Investment segment[143] - Net loss attributable to Icahn Enterprises was $347 million, with the Holding Company contributing a loss of $207 million and the Investment segment contributing a loss of $88 million[143] - Consolidated net sales totaled $8,433 million, with Energy contributing $7,045 million and Automotive contributing $799 million[144] - Net loss from investment activities was $(1,275) million, significantly impacting overall performance[144] - Energy segment's petroleum products revenue for the nine months ended September 30, 2024, was $5,277 million, down from $6,505 million in 2023[146] - Automotive segment's total revenue from customers for the nine months ended September 30, 2024, was $1,096 million, compared to $1,283 million in 2023[147] - Net loss attributable to Icahn Enterprises was $(545) million, driven by a $(462) million loss in the Holding Company segment[144] - The Investment segment reported revenues of $334 million for the three months ended September 30, 2024, compared to $224 million in the same period in 2023[193] - The Energy segment reported a net loss of $134 million for the three months ended September 30, 2024, compared to a net income of $342 million in the same period in 2023[193] - Consolidated net income attributable to Icahn Enterprises was $22 million for the three months ended September 30, 2024, compared to a net loss of $6 million in the same period in 2023[193] - Investment Funds' net income for the three months ended September 30, 2024, was $296 million, compared to a loss of $297 million in 2023[201] Cash Flow and Financing Activities - Net cash provided by operating activities for the nine months ended September 30, 2024, was $588 million, compared to $3,621 million for the same period in 2023[21] - Net cash used in investing activities for the nine months ended September 30, 2024, was $226 million, primarily due to capital expenditures of $192 million[21] - Net cash used in financing activities for the nine months ended September 30, 2024, was $1,573 million, including $511 million in distributions to non-controlling interests[21] - The company's cash and cash equivalents decreased by $1,212 million to $4,734 million as of September 30, 2024, compared to $6,112 million as of September 30, 2023[21] - Cash held at consolidated affiliated partnerships was $808 million as of September 30, 2024, down from $1,068 million at December 31, 2023[48] - Restricted cash balance was $1,632 million as of September 30, 2024, compared to $1,927 million at December 31, 2023[49] - The company issued $750 million in aggregate principal amount of 9.000% senior unsecured notes due 2030 in May 2024, using the proceeds to redeem the remaining 6.375% senior unsecured notes due 2025[123] - During the three months ended September 30, 2024, the company sold 233,000 depositary units, generating $4 million in gross proceeds[135] - During the nine months ended September 30, 2024, the company sold 5,806,986 depositary units, generating $102 million in gross proceeds[135] - As of September 30, 2024, the company had repurchased $269 million worth of senior notes under the Repurchase Program[136] - The company is authorized to repurchase up to an additional $500 million worth of senior notes and $500 million of depositary units under the reapproved Repurchase Program[136] - Icahn Enterprises commenced an exchange offer for $700 million in senior notes due 2029 and $750 million in senior notes due 2030, which expired on October 17, 2024[181] Segment Performance - The Investment segment had interests with a fair value of approximately $2.7 billion as of September 30, 2024, compared to $3.2 billion as of December 31, 2023[26] - CVR Energy, part of the Energy segment, held approximately 66% of the total outstanding common stock of CVR Energy as of September 30, 2024[27] - Viskase, part of the Food Packaging segment, was approximately 91% owned by the company as of September 30, 2024[30] - The Automotive segment deconsolidated Auto Plus due to bankruptcy filings on January 31, 2023, impacting the segment's operations[29] - Pharma segment operates through Vivus LLC, which has two approved therapies and four product candidates in development[33] - Energy segment had $9 million of remaining performance obligations for contracts with durations over one year, with $1 million expected to be recognized by end of 2024[53] - Energy segment's deferred revenue was $68 million as of September 30, 2024, up from $49 million at December 31, 2023[54] - Automotive segment's deferred revenue for extended warranty plans was $39 million as of September 30, 2024, down from $45 million at December 31, 2023[55] - Auto Plus bankruptcy resulted in a non-cash charge of $246 million during the nine months ended September 30, 2023[62] - Investment Funds' fair market value of investments by Mr. Icahn and affiliates was $1.5 billion as of September 30, 2024, representing 35% of assets under management[64] - $14 million and $10 million were allocated to the Investment Funds for the nine months ended September 30, 2024 and 2023, respectively, based on the expense-sharing arrangement[65] - Total lease revenues from Auto Plus for the Automotive segment were $3 million for the eight months from January 31, 2023 to September 30, 2023[68] - Total inventory purchases from Auto Plus for the Automotive segment were $4 million for the eight months from January 31, 2023 to September 30, 2023[68] - Total lease revenues from Auto Plus for the Real Estate segment were $3 million for the eight months from January 31, 2023 to September 30, 2023[69] - AEP PLC acquired $10 million of assets, mostly Aftermarket Parts inventory, during the year ended December 31, 2023[70] - Brett Icahn had net redemptions of $4 million during the nine months ended September 30, 2024, and $9 million in the same period in 2023[71] - The fair market value of Brett Icahn's investments in the Investment Funds was $17 million as of September 30, 2024, compared to $28 million as of December 31, 2023[71] - The carrying value of investments and securities sold, not yet purchased, was $2,476 million as of September 30, 2024, compared to $2,898 million as of December 31, 2023[73] - The unrealized losses related to securities still held by the Investment segment were $(229) million for the nine months ended September 30, 2024, compared to $(286) million for the same period in 2023[73] - The estimated fair value of the company's note receivable from Auto Plus was $7 million at September 30, 2024[82] - The Investment Funds' equity contracts had a long notional exposure of $1,782 million and a short notional exposure of $1,912 million as of September 30, 2024, compared to $1,882 million and $2,350 million respectively as of December 31, 2023[92] - The short notional exposure for credit default swap positions was $0.8 billion as of September 30, 2024, down from $2.5 billion as of December 31, 2023, with downside exposure limited to $0.15 billion and $0.4 billion respectively[92] - The Investment Funds' derivative assets totaled $27 million as of September 30, 2024, down from $39 million as of December 31, 2023, while derivative liabilities decreased to $678 million from $979 million over the same period[94] - CVR Energy had swap positions for crack spreads that offset to zero as of September 30, 2024, compared to 11 million barrels outstanding as of December 31, 2023[99] - CVR Energy had open fixed-price commitments to purchase a net 27 million RINs as of September 30, 2024[99] - The Energy segment's derivative liabilities with credit-risk-related contingent features had an aggregate fair value of $5 million as of September 30, 2024, with $3 million in collateral posted[102] - Gains recognized on derivatives for the Energy segment were $2 million for the three months ended September 30, 2024, compared to losses of $106 million for the same period in 2023[103] - Related party notes receivable, net decreased to $7 million as of September 30, 2024 from $19 million as of December 31, 2023, with an allowance for expected credit losses of $12 million[104] - Inventories, net decreased to $883 million as of September 30, 2024 from $1,047 million as of December 31, 2023, driven by reductions in raw materials and finished goods[105] - The company's net carrying value of goodwill and intangible assets remained stable at $289 million as of September 30, 2024 compared to $288 million as of December 31, 2023[107] - Intangible assets, net decreased from $466 million as of December 31, 2023 to $423 million as of September 30, 2024, primarily due to amortization of definite-lived intangible assets[108][109] - Operating lease right-of-use assets decreased from $526 million as of December 31, 2023 to $520 million as of September 30, 2024, while lease liabilities decreased from $531 million to $524 million[111][113] - Total debt decreased from $7,207 million as of December 31, 2023 to $6,447 million as of September 30, 2024, driven by debt repurchases and redemptions[121][124][126] - The company repurchased $177 million aggregate principal amount of senior unsecured notes in August and September 2024 for total cash paid of $168 million[124] - CVR Energy's total availability under its ABL credit facilities increased to $329 million as of September 30, 2024, up from $275 million previously[127] - Lease cost for the nine months ended September 30, 2024 was $132 million for operating leases, $6 million for amortization of financing lease right-of-use assets, and $5 million for interest expense on financing lease liabilities[116] - The Automotive segment accounted for $106 million of total lease cost for the nine months ended September 30, 2024, down from $108 million in the prior year period[117] - Revenues from operating leases in the Automotive segment were $45 million for the nine months ended September 30, 2024, up from $43 million in the prior year period[118] - The Real Estate segment's revenue from operating leases decreased to $7 million for the nine months ended September 30, 2024, down from $15 million in the prior year period[119] - The company incurred a total interest expense of $130 million, with the Holding Company segment accounting for $80 million of this expense[140] - Capital expenditures totaled $58 million, with the Energy segment accounting for $34 million of this amount[140] - Depreciation and amortization expenses were $126 million, with the Energy segment contributing $90 million[140] - The company reported a net loss of $134 million in the Energy segment, partially offset by a net income of $296 million in the Investment segment[140] - The Real Estate segment generated $6 million in net sales and $23 million in other revenues from operations, totaling $30 million in revenues[140] - The Pharma segment reported net sales of $27 million and other income of $1 million, contributing $29 million to the consolidated revenues[140] - Cost of goods sold for the Energy segment was $2.048 billion, making up a large portion of the total cost of goods sold of $2.377 billion[141] - Selling, general, and administrative expenses amounted to $209 million, with the Automotive segment accounting for $116 million[141] - Capital expenditures for the Energy segment were $50 million, contributing to the total capital expenditures of $70 million[141] - Capital expenditures totaled $192 million, with the Energy segment accounting for $124 million and the Automotive segment accounting for $40 million[143] - Depreciation and amortization expenses were $382 million, with the Energy segment accounting for $272 million and the Automotive segment accounting for $56 million[143] - Capital expenditures for the period were $201 million, with Energy accounting for $150 million[144] - Depreciation and amortization expenses totaled $384 million, with Energy contributing $269 million[144] - Selling, general, and administrative expenses were $653 million, with Automotive accounting for $362 million[144] - Investment segment's fair market value decreased from $3.2 billion in 2023 to $2.7 billion in 2024[195] - Investment Funds' returns for the three months ended September 30, 2024, were 7.6%, compared to (4.4)% in 2023