Icahn Enterprises
Annual Report 2015

Plain-text annual report

ICAHN ENTERPRISES L.P. FORM 10-K (Annual Report) Filed 02/29/16 for the Period Ending 12/31/15 Address Telephone CIK Symbol SIC Code 767 FIFTH AVENUE SUITE 4600 NEW YORK, NY 10153 212-702-4300 0000813762 IEP 2911 - Petroleum Refining Industry Retail (Specialty) Sector Fiscal Year Services 12/31 http://www.edgar-online.com © Copyright 2016, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 10-KANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the Fiscal Year Ended December 31, 2015(Commission File Number)(Exact Name of Registrant as Specified in Its Charter)(Address of Principal Executive Offices) (Zip Code)(Telephone Number)(State or OtherJurisdiction ofIncorporation orOrganization)(IRS EmployerIdentification No.)001-09516ICAHN ENTERPRISES L.P.Delaware13-3398766 767 Fifth Avenue, Suite 4700 New York, NY 10153(212) 702-4300 333-118021-01ICAHN ENTERPRISES HOLDINGS L.P.Delaware13-3398767 767 Fifth Avenue, Suite 4700 New York, NY 10153(212) 702-4300 Securities registered pursuant to Section 12(b) of the Act:Title of Each Class Name of Each Exchange on Which RegisteredDepositary Units of Icahn Enterprises L.P.Representing Limited Partner Interests NASDAQ Global Select MarketSecurities registered pursuant to Section 12(g) of the Act: NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act.Icahn Enterprises L.P. Yes x No o Icahn Enterprises Holdings L.P. Yes o No xIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.Icahn Enterprises L.P. Yes o No x Icahn Enterprises Holdings L.P. Yes o No xIndicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or forsuch shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Icahn Enterprises L.P. Yes x No o Icahn Enterprises Holdings L.P. Yes x No oIndicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuantto Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Icahn Enterprises L.P. Yes x No o Icahn Enterprises Holdings L.P. Yes x No oIndicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, indefinitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. xIndicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer,”“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check One):Icahn Enterprises L.P. Icahn Enterprises Holdings L.P.Large Accelerated Filer xAccelerated Filer o Large Accelerated Filer oAccelerated Filer oNon-accelerated Filer oSmaller Reporting Company o Non-accelerated Filer xSmaller Reporting Company oIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Icahn Enterprises L.P. Yes o No x Icahn Enterprises Holdings L.P. Yes o No xThe aggregate market value of Icahn Enterprises' depositary units held by non-affiliates of the registrant as of June 30, 2015 , the last business day of the registrant's most recently completedsecond fiscal quarter, based upon the closing price of depositary units on the New York Stock Exchange Composite Tape on such date was $1,245 million .As of February 29, 2016 , there were 131,481,059 of Icahn Enterprises' depositary units outstanding.ICAHN ENTERPRISES L.P.ICAHN ENTERPRISES HOLDINGS L.P.TABLE OF CONTENTS PageNo . PART I Item 1.Business1Item 1A.Risk Factors23Item 1B.Unresolved Staff Comments92Item 2.Properties92Item 3.Legal Proceedings94Item 4.Mine Safety Disclosures95 PART II Item 5.Market for Registrant's Common Equity, Related Security Holder Matters and Issuer Purchases of Equity Securities96Item 6.Selected Financial Data97Item 7.Management's Discussion and Analysis of Financial Condition and Results of Operations100Item 7A.Quantitative and Qualitative Disclosures about Market Risk133Item 8.Financial Statements and Supplementary Data138Item 9.Changes In and Disagreements With Accountants on Accounting and Financial Disclosure231Item 9A.Controls and Procedures231Item 9B.Other Information233 PART III Item 10.Directors, Executive Officers and Corporate Governance234Item 11.Executive Compensation238Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Security Holder Matters243Item 13.Certain Relationships and Related Transactions, and Director Independence244Item 14.Principal Accountant Fees and Services249 PART IV Item 15.Exhibits and Financial Statement Schedules250iEXPLANATORY NOTEThis Annual Report on Form 10-K (this "Report") is a joint report being filed by Icahn Enterprises L.P. and Icahn Enterprises Holdings L.P. Each registranthereto is filing on its own behalf all of the information contained in this Report that relates to such registrant. Each registrant hereto is not filing any informationthat does not relate to such registrant, and therefore makes no representation as to any such information.PART IItem 1. Business.Business OverviewIcahn Enterprises L.P. (“Icahn Enterprises”) is a master limited partnership formed in Delaware on February 17, 1987. Icahn Enterprises Holdings L.P.(“Icahn Enterprises Holdings”) is a limited partnership formed in Delaware on February 17, 1987. References to "we," "our" or "us" herein include both IcahnEnterprises and Icahn Enterprises Holdings and their subsidiaries, unless the context otherwise requires.Icahn Enterprises owns a 99% limited partner interest in Icahn Enterprises Holdings. Icahn Enterprises G.P. Inc. (“Icahn Enterprises GP”), which is ownedand controlled by Mr. Carl C. Icahn, owns a 1% general partner interest in each of Icahn Enterprises and Icahn Enterprises Holdings. Icahn Enterprises Holdingsand its subsidiaries own substantially all of our assets and liabilities and conduct substantially all of our operations. Therefore, the financial results of IcahnEnterprises and Icahn Enterprises Holdings are substantially the same, with differences relating primarily to debt, as discussed further in Note 10 , " Debt ," to theconsolidated financial statements, and to the allocation of the general partner interest, which is reflected as an aggregate 1.99% general partner interest in thefinancial statements of Icahn Enterprises. In addition to the above, as of February 29, 2016 , Mr. Icahn and his affiliates owned 117,033,818 , or approximately89.0% , of Icahn Enterprises' outstanding depositary units.Mr. Icahn's estate has been designed to assure the stability and continuation of Icahn Enterprises with no need to monetize his interests for estate tax or otherpurposes. In the event of Mr. Icahn's death, control of Mr. Icahn's interests in Icahn Enterprises and its general partner will be placed in charitable and other trustsunder the control of senior Icahn Enterprises executives and family members.We are a diversified holding company owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Automotive,Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate and Home Fashion. Segment and geographic information for our reporting segments, as ofDecember 31, 2015 and 2014 and for each of the three years ended December 31, 2015 is presented in Note 13 , “ Segment and Geographic Reporting ,” to theconsolidated financial statements, included in Item 8 of this Report. Also, refer to Note 3 , “ Operating Units ,” for additional information for each of our reportingsegments.Business Strategy and Core StrengthsThe Icahn StrategyAcross all of our businesses, our success is based on a simple formula: we seek to find undervalued companies in the Graham & Dodd tradition, amethodology for valuing stocks that primarily looks for deeply depressed prices. However, while the typical Graham & Dodd value investor purchasesundervalued securities and waits for results, we often become actively involved in the companies we target. That activity may involve a broad range of approaches,from influencing the management of a target to take steps to improve shareholder value, to acquiring a controlling interest or outright ownership of the targetcompany in order to implement changes that we believe are required to improve its business, and then operating and expanding that business. This activism hasbrought about very strong returns over the years.Today, we are a diversified holding company owning subsidiaries engaged in the following operating businesses: Investment, Automotive, Energy, Metals,Railcar, Mining, Gaming, Food Packaging, Real Estate and Home Fashion. Through our Investment segment, as of December 31, 2015 , we have significantpositions in various investments, which include American International Group (AIG), Apple Inc. (AAPL), Cheniere Energy, Inc. (LNG), Chesapeake Energy(CHK), Freeport-McMoRan Inc. (FCX), Gannett Co., Inc. (GCI), Herbalife Ltd. (HLF), Hertz Global Holdings, Inc. (HTZ), Hologic Inc. (HOLX), NuanceCommunications, Inc. (NUAN), Navistar International Corp. (NAV), PayPal Holdings, Inc. (PYPL), Tegna Inc. (TGNA), Transocean Ltd. (RIG), Mentor GraphicsCorporation (MENT), Manitowoc Company Inc. (MTW), Seventy Seven Energy Inc. (SSE) and Xerox Corporation (XRX).Several of our operating businesses started out as investment positions in debt or equity securities, held either directly by our Investment segment or Mr.Icahn. Those positions ultimately resulted in control or complete ownership of the target1company. In 2012, we acquired a controlling interest in CVR Energy, Inc. (‘‘CVR’’) which started out as a position in our Investment segment and is now anoperating subsidiary that comprises our Energy segment.As of December 31, 2015 , based on the closing sale price of CVR stock and distributions since we acquired control, we had a gain of approximately $2.2billion. The acquisition of CVR, like our other operating subsidiaries, reflects our opportunistic approach to value creation, through which returns may be obtainedby, among other things, promoting change through minority positions at targeted companies in our Investment segment or by acquiring control of those targetcompanies that we believe we could run more profitably ourselves.In 2000, we began to expand our business beyond our traditional real estate activities, and to fully embrace our activist strategy. On January 1, 2000, theclosing sale price of our depositary units was $7.625 per depositary unit. On December 31, 2015 , our depositary units closed at $61.30 per depositary unit,representing an increase of approximately 1,024% since January 1, 2000 (including reinvestment of distributions into additional depositary units and taking intoaccount in-kind distributions of depositary units). Comparatively, the S&P 500, Dow Jones Industrial and Russell 2000 indices increased approximately 89%,122% and 178%, respectively, over the same period (including reinvestment of distributions into those indices).During the next several years, we see a favorable opportunity to follow an activist strategy that centers on the purchase of target stock and the subsequentremoval of any barriers that might interfere with a friendly purchase offer from a strong buyer. Alternatively, in appropriate circumstances, we or our subsidiariesmay become the buyer of target companies, adding them to our portfolio of operating subsidiaries, thereby expanding our operations through such opportunisticacquisitions. We believe that the companies that we target for our activist activities are undervalued for many reasons, often including inept management.Unfortunately for the individual investor, in particular, and the economy, in general, many poor management teams are often unaccountable and very difficult toremove.Unlike the individual investor, we have the wherewithal to purchase companies that we feel we can operate more effectively than incumbent management. Inaddition, through our Investment segment, we are in a position to pursue our activist strategy by purchasing stock or debt positions and trying to promulgatechange through a variety of activist approaches, ranging from speaking and negotiating with the board and CEO to proxy fights, tender offers and taking control.We work diligently to enhance value for all shareholders and we believe that the best way to do this is to make underperforming management teams and boardsaccountable or to replace them.The Chairman of the Board of our general partner, Carl C. Icahn, has been an activist investor since 1980. Mr. Icahn believes that the current environmentcontinues to be conducive to activism. Many major companies have substantial amounts of cash. We believe that they are hoarding cash, rather than spending it,because they do not believe investments in their business will translate to earnings.We believe that one of the best ways for many cash-rich companies to achieve increased earnings is to use their large amounts of excess cash, together withadvantageous borrowing opportunities, to purchase other companies in their industries and take advantage of the meaningful synergies that could result. In ouropinion, the CEOs and Boards of Directors of undervalued companies that would be acquisition targets are the major road blocks to this logical use of assets toincrease value, because we believe those CEOs and boards are not willing to give up their power and perquisites, even if they have done a poor job inadministering the companies they have been running. In addition, acquirers are often unwilling to undertake the arduous task of launching a hostile campaign. Thisis precisely the situation in which a strong activist catalyst is necessary.We believe that the activist catalyst adds value because, for companies with strong balance sheets, acquisition of their weaker industry rivals is oftenextremely compelling financially. We further believe that there are many transactions that make economic sense, even at a large premium over market. Acquirerscan use their excess cash, that is earning a very low return, and/or borrow at the advantageous interest rates now available, to acquire a target company. In eithercase, an acquirer can add the target company’s earnings and the income from synergies to the acquirer’s bottom line, at a relatively low cost. But for these potentialacquirers to act, the target company must be willing to at least entertain an offer. We believe that often the activist can step in and remove the obstacles that a targetmay seek to use to prevent an acquisition.It is our belief that our strategy will continue to produce strong results into the future, and that belief is reflected in the action of the board of directors of ourgeneral partner, which announced in March 2014, a decision to modify our distribution policy to increase our annual distribution to $6.00 per depositary unit. Webelieve that the strong cash flow and asset coverage from our operating segments will allow us to maintain a strong balance sheet and ample liquidity.In our view Icahn Enterprises is in a virtuous cycle. We believe that our depositary units will give us another powerful activist tool, allowing us both to useour depositary units as currency for tender offers and acquisitions (both hostile and friendly) where appropriate. All of these factors will, in our opinion, contributeto making our activism even more efficacious, which we expect to enhance our results and stock value.2Core StrengthsWe believe that our core strengths include: identifying and acquiring undervalued assets and businesses, often through the purchase of distressed securities;increasing value through management, financial or other operational changes; and managing complex legal, regulatory or financial issues, which may includebankruptcy or insolvency, environmental, zoning, permitting and licensing issues.The key elements of our business strategy include the following:Capitalize on Growth Opportunities in our Existing Businesses . We believe that we have developed a strong portfolio of businesses with experiencedmanagement teams. We may expand our existing businesses if appropriate opportunities are identified, as well as use our established businesses as a platform foradditional acquisitions in the same or related areas.Drive Accountability and Financial Discipline in the Management of our Business. Our Chief Executive Officer is accountable directly to our board ofdirectors, including the Chairman, and has day-to-day responsibility, in consultation with our Chairman, for general oversight of our business segments. Wecontinually evaluate our operating subsidiaries with a view towards maximizing value and cost efficiencies, bringing an owner's perspective to our operatingbusinesses. In each of these businesses, we assemble senior management teams with the expertise to run their businesses and boards of directors to oversee themanagement of those businesses. Each management team is responsible for the day-to-day operations of their businesses and directly accountable to its board ofdirectors.Seek to Acquire Undervalued Assets . We intend to continue to make investments in businesses that we believe are undervalued and have potential forgrowth. We also seek to capitalize on investment opportunities arising from market inefficiencies, economic or market trends that have not been identified andreflected in market value, or complex or special situations. Certain opportunities may arise from companies that experience disappointing financial results, liquidityor capital needs, lowered credit ratings, revised industry forecasts or legal complications. We may acquire businesses or assets directly or we may establish anownership position through the purchase of debt or equity securities in the open market or in privately negotiated transactions.Use Activism to Unlock Value. As described above, we become actively involved in companies in which we invest. Such activism may involve a broad rangeof activities, from trying to influence management in a proxy fight, to taking outright control of a company in order to bring about the change we think is requiredto unlock value. The key is flexibility, permanent capital and the willingness and ability to have a long-term investment horizon.InvestmentBackgroundOur Investment segment is comprised of various private investment funds, including Icahn Partners L.P. ("Icahn Partners"), Icahn Partners Master Fund LP,Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP (collectively, the "Master Funds", and together with Icahn Partners, the "InvestmentFunds"), through which we invest our proprietary capital. Effective January 1, 2014, Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP weremerged with and into Icahn Partners. We and certain of Mr. Icahn's wholly owned affiliates are the sole investors in the Investment Funds. Icahn Onshore LP andIcahn Offshore LP (together, the "General Partners") act as the general partner of Icahn Partners and the Master Funds, respectively. The General Partners provideinvestment advisory and certain administrative and back office services to the Investment Funds but do not provide such services to any other entities, individualsor accounts. Interests in the Investment Funds are not offered to outside investors.The Investment Funds returned all fee-paying capital to their investors during 2011. Payments were funded through cash on hand and borrowings underexisting credit lines.Investment StrategyThe investment strategy of the General Partners is set and led by Mr. Icahn. The Investment Funds seek to acquire securities in companies that trade at adiscount to inherent value as determined by various metrics, including replacement cost, break-up value, cash flow and earnings power and liquidation value.The General Partners utilize a process-oriented, research-intensive, value-based investment approach. This approach generally involves three critical steps: (i)fundamental credit, valuation and capital structure analysis; (ii) intense legal and tax analysis of fulcrum issues such as litigation and regulation that often affectvaluation; and (iii) combined business valuation analysis and legal and tax review to establish a strategy for gaining an attractive risk-adjusted investment position.This approach focuses on exploiting market dislocations or misjudgments that may result from market euphoria, litigation, complex contingent liabilities, corporatemalfeasance and weak corporate governance, general economic conditions or market cycles and complex and inappropriate capital structures.3The Investment Funds are often activist investors ready to take the steps necessary to seek to unlock value, including tender offers, proxy contests anddemands for management accountability. The Investment Funds may employ a number of strategies and are permitted to invest across a variety of industries andtypes of securities, including long and short equities, long and short bonds, bank debt and other corporate obligations, options, swaps and other derivativeinstruments thereof, risk arbitrage and capital structure arbitrage and other special situations. The Investment Funds invest a material portion of their capital inpublicly traded equity and debt securities of companies that the General Partners believe to be undervalued by the marketplace. The Investment Funds often takesignificant positions in the companies in which they invest.IncomeSince April 1, 2011, the results of our Investment segment have primarily been driven by the performance of the Investment Funds and our interests therein;the General Partners no longer receive special profits interest allocations or incentive allocations. Prior to March 31, 2011, income from our Investment segmentwas principally derived from three sources: (1) special profits interest allocations; (2) incentive allocations; and (3) gains and losses from our interests in theInvestment Funds.Prior to March 31, 2011, incentive allocations generally ranged from 15% to 25% of the net profits (both realized and unrealized) generated by fee-payinginvestors in the Investment Funds and were generally subject to a “high watermark," whereby the General Partners did not earn incentive allocations during aparticular year even though the fund had a positive return in such year until losses in prior periods were recovered. In general, these allocations had been calculatedand distributed to the General Partners annually other than incentive allocations earned as a result of investor redemption events during interim periods. For theperiod January 1, 2008 through March 31, 2011, the Investment Fund Limited Partnership Agreements provided that the applicable General Partner was eligible toreceive a special profits interest allocation at the end of each calendar year from each applicable fee-paying capital account maintained at the Investment Fund.Special profits interest allocations ranged from 1.5% to 2.5% per annum and were allocated to the General Partners to the extent the Investment Funds hadsufficient profits to cover such amounts.Affiliate InvestmentsWe and Mr. Icahn, along with the Investment Funds, have entered into a covered affiliate agreement, which was amended on March 31, 2011, pursuant towhich Mr. Icahn agreed (on behalf of himself and certain of his affiliates, excluding Icahn Enterprises, Icahn Enterprises Holdings and their subsidiaries) to bebound by certain restrictions on their investments in any assets that the General Partners deem suitable for the Investment Funds, other than government andagency bonds and cash equivalents, unless otherwise approved by our Audit Committee. In addition, Mr. Icahn and such affiliates continue to have the right to co-invest with the Investment Funds. We have no interest in, nor do we generate any income from, any such co-investments, which have been and may continue to besubstantial.EmployeesOur Investment segment is supported by an experienced team of 21 professionals as of December 31, 2015 , including an investment, legal and operationsgroup. In many cases, team members have worked together successfully and have provided business, investing and legal services for a number of years withrespect to the Investment Funds' operations.AutomotiveBackgroundWe conduct our Automotive segment through our majority ownership in Federal-Mogul Holdings Corporation ("Federal-Mogul"), our wholly ownedsubsidiary IEH Auto Parts Holding LLC ("IEH Auto"), effective June 1, 2015, and our wholly owned subsidiary Pep Boys - Manny, Moe and Jack ("Pep Boys"),effective February 3, 2016.On February 28, 2016, Icahn Enterprises issued a proposal to the board of directors of Federal-Mogul to purchase the shares of Federal-Mogul common stocknot owned by us in a merger transaction pursuant to which Federal-Mogul shareholders would receive $7.00 per share in cash for their Federal-Mogul shares.Federal-Mogul is operated independently from IEH Auto and Pep Boys. See below discussion regarding our business strategies for each of Federal-Mogul,IEH Auto and Pep Boys.On April 15, 2014, Federal-Mogul completed a holding company reorganization (the “Federal-Mogul Reorganization”). As a result of the Federal-MogulReorganization, the outstanding shares of Federal-Mogul Corporation common stock were automatically converted on a one-for-one basis into shares of Federal-Mogul Holdings Corporation common stock, and all of the stockholders of Federal-Mogul Corporation immediately prior to the Reorganization automaticallybecame stockholders of Federal-Mogul Holdings Corporation. References herein to “Federal-Mogul” are to Federal-Mogul Corporation for the period4prior to the effective time of the Federal-Mogul Reorganization on April 15, 2014 and to Federal-Mogul Holdings Corporation for the period after the effectivetime of the Federal-Mogul Reorganization. As of December 31, 2015 , we owned approximately 82.0% of the outstanding common stock of Federal-Mogul.On June 1, 2015, IEH Auto acquired substantially all of the auto parts assets in the United States of Uni-Select, Inc., a leading automotive parts distributor fordomestic and imported vehicles.On February 3, 2016, pursuant to a tender offer, Icahn Enterprises acquired a majority of the outstanding shares of Pep Boys - Manny, Moe & Jack ("PepBoys"), a leading aftermarket provider of automotive service, tires, parts and accessories across the United States and Puerto Rico. On February 4, 2016, IcahnEnterprises completed the acquisition of the remaining outstanding shares of Pep Boys and our wholly owned subsidiary, IEP Parts Acquisition LLC, merged withand into Pep Boys, with Pep Boys surviving the merger as a wholly owned subsidiary of Icahn Enterprises Holdings. The total value for the acquisition of PepBoys was approximately $1.2 billion , including the fair value of our equity interest in Pep-Boys just prior to our acquisition of a controlling interest.Refer to Note 3 , “ Operating Units - Automotive,” to the consolidated financial statements, included in Item 8 of this Report for further discussion of theseacquisitions.BusinessFederal-MogulFederal-Mogul is a leading global supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reduction and safetysystems. Federal-Mogul serves original equipment manufacturers (“OEM”) and servicers (“OES”) (collectively “OE”) of automotive, light, medium and heavy-duty commercial vehicles, off-road, agricultural, marine, rail, aerospace, power generation and industrial equipment, as well as the worldwide aftermarket. Federal-Mogul seeks to participate in both of these markets by leveraging its original equipment product engineering and development capability, manufacturing know-how, and expertise in managing a broad and deep range of replacement parts to service the aftermarket. Federal-Mogul is a leading technology supplier and amarket share leader in several product categories. As of December 31, 2015 , Federal-Mogul had current OEM products included on more than 300 global vehicleplatforms and more than 700 global powertrains used in light, medium and heavy-duty vehicles. Federal-Mogul offers premium brands, OE replacement andentry/mid level products for all aftermarket customers. Therefore, Federal-Mogul can be first to the aftermarket with new products, service expertise and customersupport.Federal-Mogul operates with two end-customer focused businesses. The Powertrain business focuses on original equipment powertrain products forautomotive, heavy-duty and industrial applications. The Motorparts business sells and distributes a broad portfolio of products in the global aftermarket, includingmore than 20 globally-recognized brands. Federal-Mogul also serves original equipment manufacturers with products including braking, wipers and a limited rangeof chassis. This organizational model allows for a strong product line focus benefiting both original equipment and aftermarket customers and enables Federal-Mogul to be responsive to customers’ needs for superior products and to promote greater identification with Federal-Mogul premium brands. Additionally, thisorganizational model enhances management focus to capitalize on opportunities for organic or acquisition growth, profit improvement, capital allocation andbusiness model optimization in line with the unique requirements of the two different customer bases and business models.Federal-Mogul has manufacturing facilities and distribution centers in 25 countries and, accordingly, Federal-Mogul’s businesses derive sales from bothdomestic and international markets. The attendant risks of Federal-Mogul’s international operations are primarily related to currency fluctuations, changes in localeconomic and political conditions, extraterritorial effects of United States laws such as the Foreign Corrupt Practices Act, and changes in laws and regulations.Federal-Mogul is a reporting company under the Securities Exchange Act of 1934, as amended, or the Exchange Act, and files annual, quarterly and currentreports, proxy statements and other information with the Securities and Exchange Commission (the "SEC") that are publicly available.IEH Auto and Pep BoysIEH Auto is a leading distributor of automotive replacement parts to the automotive aftermarket in the United States. IEH Auto has 34 distribution centersand satellite locations and 264 corporate-owned jobber stores in the United States and supports a network of more than 2,000 independent wholesalers.Pep Boys has 806 locations in the automotive aftermarket industry located throughout the United States and Puerto Rico. Pep Boys stores are organized into ahub and spoke network consisting of Supercenters and Service & Tire Centers. Supercenters average approximately 20,000 square feet and combine a parts andaccessories store with professional service centers that perform a full range of automotive maintenance and repair services. Most of the Pep Boys Supercenters alsohave a commercial sales program that provides prompt delivery of parts, tires and equipment to automotive repair shops and dealers.5Service & Tire Centers, which average approximately 6,000 square feet, provide automotive maintenance and repair services in neighborhood locations that areconveniently located where our customers live or work.AcquisitionsIn addition to the IEH Auto and Pep Boys acquisitions described above, Federal-Mogul acquired several businesses throughout 2014 and 2015. Thecombination of these acquisitions add new product lines to our Automotive segment, providing operating synergies, strengthening distribution channels andenhancing our Automotive segment's ability to better service its customers. Refer to Note 3 , “ Operating Units ,” to the consolidated financial statements, includedin Item 8 of this Report for further discussion.StrategyFederal-MogulFederal-Mogul's strategy is designed to create sustainable global profitable growth, by leveraging existing and developing new competitive advantages. Thisstrategy consists of the following primary elements:•Provide value-added products to customers in all markets served through leading technology and innovation;•Develop products to enable increased fuel economy and reduce vehicle emissions, plus enable the use of alternative energies;•Utilize Federal-Mogul's leading technology resources to develop advanced and innovative products, processes and manufacturing capabilities;•Extend Federal-Mogul's global reach to support its OE and aftermarket customers, furthering its relationships with leading Asian OEs and strengtheningmarket share with U.S. and European OEs;•Assess acquisition and investment opportunities that provide product line expansion, technological advancements, geographic positioning, penetration ofemerging markets (including India and China) and market share growth;•Invest in world-class distribution and online capabilities to meet delivery expectations of Federal-Mogul's customers by enhancing its distributionfootprint to improve its distribution capabilities, strengthen delivery performance and engage end customers;•Leverage the strength of Federal-Mogul's global aftermarket leading brand positions, product portfolio and range, marketing and selling expertise, anddistribution and logistics capabilities;•Expand Federal-Mogul's coverage in existing product lines and add new product lines which are critical to maintaining its leadership position andleveraging its distribution and sales network;•Continue to invest in product innovation to support Federal-Mogul's premium brands and to enhance its marketing initiatives to more effectivelycommunicate the value proposition of its branded products to end customers; and•Aggressively pursue cost competitiveness in all business segments by continuing to drive productivity in existing operations, consolidating and relocatingmanufacturing operations to best cost countries, utilizing Federal-Mogul's strategic joint ventures and alliances, and rationalizing business resources andinfrastructure.IEH Auto and Pep BoysThe automotive aftermarket industry is in the mature stage of its life cycle. Over the past decade, consumers have moved away from do-it-yourself (“DIY”)toward do-it-for-me (“DIFM”) due to increasing vehicle complexity and electronic content, as well as decreasing availability of diagnostic equipment and know-how. Consistent with this long-term trend, IEH Auto's and Pep Boys' long-term strategy is to grow their sales to DIFM distributors and DIFM serviceprofessionals, grow their automotive service business, and maintain their DIY customer bases by offering the newest and broadest product assortment in theautomotive aftermarket. IEH Auto and Pep Boys provide their customers with access to over two million replacement parts for domestic and imported vehiclesthrough an extensive network of suppliers. They seek to provide (i) an extensive selection of product offerings; (ii) competitive pricing; (iii) exceptional in-storeservice experience; and (iv) superior delivery to their customers.Research and DevelopmentFederal-Mogul’s research and development activities are conducted at its research and development locations. Within the United States, these centers arelocated in Skokie, Illinois; Ann Arbor, Michigan; Plymouth, Michigan; St. Louis, Missouri; Exton, Pennsylvania; and Waupun, Wisconsin. Internationally,Federal-Mogul's research and development centers are located in Araras, Brazil; Aubange, Belgium; Chapel-en-le-Frith, United Kingdom; Coventry, UnitedKingdom; Burscheid, Germany; Nuremberg, Germany; Wiesbaden, Germany; Bad Camberg, Germany; Glinde, Germany; Kostelec, Czech Republic; andShanghai, China.6Each of Federal-Mogul's business units is engaged in engineering, research and development efforts and works closely with customers to develop customsolutions to meet their needs. Total expenditures for research and development activities, including product engineering and validation costs, were $189 million ,$192 million and $177 million for the years ended December 31, 2015 , 2014 and 2013 , respectively.IEH Auto and Pep Boys do not conduct research and development.Restructuring ActivitiesFederal-Mogul's restructuring activities are undertaken as necessary to execute its strategy and streamline operations, consolidate and take advantage ofavailable capacity and resources, and ultimately to achieve net cost reductions and productivity improvements. These restructuring activities include efforts tointegrate and rationalize businesses and to relocate manufacturing operations to best cost markets.Federal-Mogul's restructuring activities are further discussed in Item 7, “Management's Discussion and Analysis of Financial Condition and Results ofOperations,” and in Note 3 , “ Operating Units ,” to the consolidated financial statements, included in Item 8 of this Report.IEH Auto and Pep Boys do not have restructuring activities.Products and ServicesFederal-Mogul is engaged in the manufacture and distribution of automotive parts. The following provides an overview of products manufactured anddistributed by Federal-Mogul by product group:•Powertrain. Federal-Mogul's Powertrain business primarily represents its OE business. The Powertrain business offers a diverse array of market-leadingproducts for OE applications, including pistons, piston rings, piston pins, cylinder liners, valve seats and guides, ignition products, dynamic seals, bondedpiston seals, combustion and exhaust gaskets, static gaskets and seals, rigid heat shields, engine bearings, industrial bearings, bushings and washers,element resistant systems protection sleeving products, acoustic shielding and flexible heat shields. Comprehensive design capability and an extensiveproduct portfolio enable effective delivery of a broad range of engine and driveline components as well as engineered solutions to improve fuel economy,reduce emissions or enhance vehicle performance and durability. The Powertrain business' products are used in automotive, motorcycle, light truck,heavy-duty, industrial, commercial equipment (construction, agricultural, power generation, marine and railway), aerospace, and small air-cooled engineapplications.•Motorparts. Federal-Mogul's Motorparts business sells and distributes a broad portfolio of products in the global vehicle aftermarket while also servingthe OE market with products including braking, wipers and chassis.. The Motorparts business’ products are utilized widely in vehicle braking systems andchassis, as well as in engine and sealing applications and general service. The Motorparts business operates 32 manufacturing sites in 15 countries and 35distribution centers and warehouses in 13 countries.IEH Auto and Pep Boys do not manufacture parts but are engaged in the distribution of automotive parts in the aftermarket. Pep Boys also providesautomotive services to its customers. Each service location performs a full range of automotive maintenance and repair services (except body work) and installstires, parts and accessories.CustomersThe automotive light vehicle market, as well as the medium duty/heavy duty commercial market, is comprised of two primary businesses: the OE market inwhich Federal-Mogul’s products are used in the manufacture of new vehicles and OE dealer service parts, and the global aftermarket, in which Federal-Mogul’s,IEH Auto's and Pep Boys' products are used as replacement parts for all vehicles in operation on the road, including all previous models.•The OE Market . Demand for component parts in the OE market is generally a function of the number of new vehicles produced. Although OE demand istied to planned vehicle production, parts suppliers also have the opportunity to grow through increasing their product content per vehicle, by increasingmarket share and by expanding into new or emerging markets. Companies with a global presence, leading technology and innovation, and advancedproduct engineering, manufacturing and customer support capabilities are best positioned to take advantage of these opportunities. Federal-Mogulsupplies OEs with a wide variety of technologically innovative parts, substantially all of which are manufactured by it. Federal-Mogul’s OE customersconsist of automotive and heavy-duty vehicle manufacturers as well as agricultural, off-highway, marine, railroad, aerospace, high performance andindustrial application manufacturers. Federal-Mogul has well-established relationships with substantially all major American, European and Asianautomotive OEs.7•The Aftermarket Business. Products for the global vehicle aftermarket are sold directly to a wide range of distributors, retail parts stores and massmerchants that distribute these products to professional service providers, “do-it-yourself” consumers and in some cases, directly to service chains.Demand for aftermarket products historically has been driven by three primary factors: (i) the number of vehicles in operation; (ii) the average age ofvehicles in operation; and (iii) vehicle usage trends. Federal-Mogul’s aftermarket customers include independent warehouse distributors who redistributeproducts to local parts suppliers, distributors of heavy-duty vehicular parts, engine rebuilders, retail parts stores and mass merchants. The breadth ofFederal-Mogul’s product lines, the strength of its leading brand names, marketing expertise, sizable sales force, and its distribution and logistics capabilityare central to the success of Federal-Mogul’s Motorparts operations. IEH Auto and Pep Boys distribute automotive parts in the aftermarket to commercialcustomers in the DIFM market as well as the retail and DIY markets. Pep Boys also provides automotive services to its customers.No individual customer accounted for more than 10% of Federal-Mogul’s net sales during 2015. Federal-Mogul's customers include IEH Auto and Pep Boys.No individual customer accounted for more than 6% of IEH Auto’s net sales during the period June 1, 2015 through December 31, 2015. No individual customeraccounted for more than 6% of Pep Boys' net sales during 2015.CompetitionThe global vehicular parts business is highly competitive. Federal-Mogul competes with many independent manufacturers and distributors of componentparts globally. In general, competition for sales is based on price, product quality, technology, delivery, customer service and the breadth of products offered by agiven supplier. Federal-Mogul is meeting these competitive challenges by developing leading technologies, efficiently integrating and expanding its manufacturingand distribution operations, widening its product coverage within its core businesses, restructuring its operations and transferring production to best cost countries,and utilizing its worldwide technical centers to develop and provide value-added solutions to its customers. A summary of Federal-Mogul's primary independentcompetitors by its businesses is set forth below.•Powertrain . Primary competitors include AGM Automotive, Art Metal, Bergmann, BinZou, Bleistahl, Bosch, Daido, Dana, Dana-Reinz, Delfingen,Denso, DongYang, ElringKlinger, FNOK, Freudenberg, Kaco/Sabo, Kolbenschmidt, Mahle, Miba, NGK, NOK, NPR, Relats, Sinteron, SKF, Taiho, andVitrica.•Motorparts . Primary competitors include Akebono Brake Corporation, Autolite, Brake Parts Inc., Bosch Group, Centric Parts, Crowne Group LLC,Delphi Automotive LLP, Denso Corporation, Dorman Products, Inc., GRI Engineering and Development LLC (MAT Holdings, Inc.), Mahle GmbH,Mevotech Inc., NGK Spark Plug Co., Ltd., NTN Bearing Corporation, Neapco Inc., Old World Industries, LLC, Phillips Industries, Pylon ManufacturingCorporation, Rain-X (ITW Global Brands), SKF Group, Osram Sylvania Ltd., The Timken Company, Trico Products Corporation, Valeo Group, DanaCorporation (Victor Reinz brand), and ZF TRW Automotive Holdings Corp. IEH Auto and Pep Boys operate in a highly competitive environment. IEH Auto and Pep Boys encounter competition from national and regional chains,automotive dealerships and from local independent service providers and merchants. Their competitors include general, full range and discount department storesand online retailers which carry automotive parts and accessories and/or have automotive service centers, as well as specialized automotive retailers. IEH Auto andPep Boys believe that their operations in both DIFM and DIY differentiate them from most of their competitors.Raw Materials and SuppliersFederal-Mogul purchases various raw materials and component parts for use in its manufacturing processes, including ferrous and non-ferrous metals, non-metallic raw materials, stampings, castings and forgings. Federal-Mogul has not experienced any significant shortages of raw materials, components or finishedparts and normally does not carry inventories of raw materials or finished parts in excess of those reasonably required to meet its production and shippingschedules. Federal-Mogul, along with IEH Auto and Pep Boys, also purchase parts manufactured by other manufacturers for sale in the aftermarket.In 2015, no outside supplier of Federal-Mogul provided products that accounted for more than 3% of Federal-Mogul’s annual purchases.For the period June 1, 2015 through December 31, 2015, IEH Auto's ten largest suppliers accounted for approximately 54% of the merchandise purchased.Federal-Mogul is a supplier to IEH Auto and individually accounted for 11% of the merchandise purchased.Historically, Pep Boys purchased a significant portion of its inventory from a limited number of suppliers. During fiscal 2015, Pep Boys' ten largest suppliersaccounted for approximately 45% of the merchandise purchased. Only one of Pep Boys' suppliers accounted for more than 10% of its purchases. Federal-Mogul isa supplier to Pep Boys.8SeasonalityFederal-Mogul’s business is moderately seasonal because many North American OE customers typically close assembly plants for two weeks in July formodel year changeovers, and for an additional week during the December holiday season. OE customers in Europe historically shut down vehicle productionduring portions of July and August and one week in December. Shut-down periods in the Rest of World generally vary by country. Our Automotive segments'aftermarket business experiences seasonal fluctuations in sales due to demands caused by weather and driving patterns. Historically, Federal-Mogul’s sales andoperating profits have been the strongest in the second quarter.In addition, IEH Auto's sales and operating profits have been the strongest in the second quarter. Pep Boys' sales and operating profits are earned evenlythroughout the year.Impact of Environmental RegulationsOur Automotive segments' operations, consistent with those of the manufacturing sector in general, are subject to numerous existing and proposed laws andgovernmental regulations designed to protect the environment, particularly regarding plant wastes and emissions and solid waste disposal. Capital expenditures forproperty, plant and equipment for environmental control activities did not have a material impact on our Automotive segments' financial position or cash flows in2015 and are not expected to have a material impact on its financial position or cash flows in 2016.Intellectual PropertyFederal-Mogul holds in excess of 6,300 patents and patent applications on a worldwide basis, of which more than 1,200 have been filed in the United States.Of the approximately 6,300 patents and patent applications, approximately 30% are in production use and/or are licensed to third parties, and the remaining 70%are being considered for future production use or provide a strategic technological benefit to Federal-Mogul.Federal-Mogul does not materially rely on any single patent, nor will the expiration of any single patent materially affect its business. Federal-Mogul’scurrent patents expire over various periods into the year 2036. Federal-Mogul is actively introducing and patenting new technology to replace formerly patentedtechnology before the expiration of the existing patents. In the aggregate, Federal-Mogul’s worldwide patent portfolio is materially important to its businessbecause it enables it to achieve technological differentiation from its competitors.Federal-Mogul also maintains more than 6,600 active trademark registrations and applications worldwide. Over 90% of these trademark registrations andapplications are in commercial use by Federal-Mogul or are licensed to third parties.IEH Auto and Pep Boys do not hold any patents.EmployeesOur Automotive segment had approximately 57,437 employees at December 31, 2015 , of which 53,700 were employed by Federal-Mogul and 3,737 wereemployed by IEH Auto. As of February 4, 2016, Pep Boys had approximately 17,000 employees.Various unions represent approximately 28% of Federal-Mogul's U.S. hourly employees and approximately 87% of Federal-Mogul's non-U.S. hourlyemployees. With the exception of two facilities in the United States, most of Federal-Mogul's unionized manufacturing facilities have their own contracts with theirown expiration dates, and as a result, no contract expiration date affects more than one facility.Neither IEH Auto nor Pep Boys had any union employees.EnergyBackgroundWe conduct our Energy segment through our majority ownership in CVR. We acquired a controlling interest in CVR on May 4, 2012.CVR is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries through its holdings inCVR Refining, LP (“CVR Refining”) and CVR Partners, LP (“CVR Partners”), respectively. CVR Refining is an independent petroleum refiner and marketer ofhigh value transportation fuels. CVR Partners produces nitrogen fertilizers in the form of urea ammonium nitrate ("UAN") and ammonia. As of December 31, 2015, CVR owned 100% of the general partners of CVR Refining and CVR Partners and approximately 66% of the outstanding common units of CVR Refining and53% of the outstanding common units of CVR Partners. Subsequent to the completion of the pending mergers as discussed below, it is estimated that CVR willhold approximately 34% of the outstanding common units of CVR Partners and 100% of the general partner interest.9On August 9, 2015, CVR Partners entered into an Agreement and Plan of Merger with Rentech Nitrogen Partners, L.P. ("Rentech Nitrogen") and RentechNitrogen GP, LLC ("Rentech Nitrogen GP"), pursuant to which CVR Partners would acquire Rentech Nitrogen and Rentech Nitrogen GP by merging two newly-created direct wholly-owned subsidiaries of CVR Partners with and into those entities with Rentech Nitrogen and Rentech Nitrogen GP continuing as survivingentities and wholly-owned subsidiaries of CVR Partners (together, the "CVR Partners Mergers"). Refer to Note 3 , " Operating Units - Energy," to the consolidatedfinancial statements for further discussion of the CVR Partners Mergers.CVR is a reporting company under the Exchange Act and files annual, quarterly and current reports, proxy statements and other information with the SECthat are publicly available.As of December 31, 2015 , Icahn Enterprises owned 82.0% of the total outstanding common stock of CVR. In addition, as of December 31, 2015 , we directlyowned approximately 4.0% of the total outstanding common units of CVR Refining.Petroleum BusinessThe petroleum business consists of our and CVR's interest in CVR Refining.CVR's petroleum business includes a 115,000 barrels per calendar day ("bpcd") rated capacity complex full coking medium-sour crude oil refinery inCoffeyville, Kansas and a 70,000 bpcd rated capacity complex crude oil refinery in Wynnewood, Oklahoma. The combined crude capacity representsapproximately 22% of the region's refining capacity. The Coffeyville refinery located in southeast Kansas is approximately 100 miles from Cushing, Oklahoma, amajor crude oil trading and storage hub. The Wynnewood refinery is located approximately 65 miles south of Oklahoma City, Oklahoma and approximately 130miles from Cushing, Oklahoma.The petroleum business also includes the following auxiliary operating assets:•Crude Oil Gathering System. The petroleum business owns and operates a crude oil gathering system serving Kansas, Nebraska, Oklahoma,Missouri, Colorado and Texas. The gathering system includes approximately 336 miles of active owned and leased pipelines and approximately 150crude oil transports and associated storage facilities, which allows it to gather crude oils from independent crude oil producers. The crude oilgathering system has a gathering capacity of over 65,000 barrels per day ("bpd"). Gathered crude oil provides an attractive and competitive basesupply of crude oil for the Coffeyville and Wynnewood refineries. During 2015, the petroleum business gathered an average of approximately 69,000bpd.•Pipelines and Storage Tanks. The petroleum business owns a proprietary pipeline system capable of transporting approximately 170,000 bpd ofcrude oil from its Broome Station facility located near Caney, Kansas to its Coffeyville refinery. Crude oils sourced outside of the proprietarygathering system are delivered by common carrier pipelines into various terminals in Cushing, Oklahoma, where they are blended and then deliveredto the Broome Station tank farm via a pipeline owned by Plains Pipeline L.P. ("Plains"). The petroleum business owns approximately (i) 1.5 millionbarrels of crude oil storage capacity that supports the gathering system and the Coffeyville refinery, (ii) 0.9 million barrels of crude oil storagecapacity at the Wynnewood refinery and (iii) 1.5 million barrels of crude oil storage capacity in Cushing, Oklahoma. The petroleum business alsoleases additional crude oil storage capacity of approximately (iv) 2.8 million barrels in Cushing, (v) 0.2 million barrels in Duncan, Oklahoma and (vi)0.1 million barrels at the Wynnewood refinery. In addition to crude oil storage, the petroleum business owns over 4.5 million barrels of combinedrefined products and feedstocks storage capacity.Crude and Feedstock SupplyThe Coffeyville refinery has the capability to process blends of a variety of crude oil ranging from heavy sour to light sweet crude oil. Currently, theCoffeyville refinery crude oil slate consists of a blend of mid-continent domestic grades and various Canadian medium and heavy sours, and it has recentlyintroduced North Dakota Bakken and other similarly sourced crudes into its crude slate. While crude oil has historically constituted over 90% of the Coffeyvillerefinery's total throughput over the last five years, other feedstock inputs include normal butane, natural gasoline, alkylation feeds, naphtha, gas oil and vacuumtower bottoms.The Wynnewood refinery has the capability to process blends of a variety of crude oil ranging from medium sour to light sweet crude oil, although isobutane,gasoline components, and normal butane are also typically used. Historically most of the Wynnewood refinery's crude oil has been acquired domestically, mainlyfrom Texas and Oklahoma, but the refinery can also access and process various light and medium Canadian grades.Crude oil is supplied to the Coffeyville and Wynnewood refineries through the wholly-owned gathering system and by pipeline. The petroleum business hascontinued to increase the number of barrels of crude oil supplied through its crude oil gathering system in 2015 and it now has the capacity of supplying over65,000 bpd of crude oil to the refineries. For the year10ended December 31, 2015, the gathering system supplied approximately 39% of both of the Coffeyville and Wynnewood refineries' crude oil demand.Crude Oil Supply AgreementOn August 31, 2012, Coffeyville Resources Refining and Marketing, LLC ("CRRM") and Vitol Inc. ("Vitol") entered into an Amended and Restated CrudeOil Supply Agreement (as amended, the "Vitol Agreement"). Under the Vitol Agreement, Vitol supplies the petroleum business with crude oil and intermediationlogistics, which helps the petroleum business to reduce its inventory position and mitigate crude oil pricing risk. The Vitol Agreement will automatically renew forsuccessive one-year terms (each such term, a "Renewal Term") unless either party provides the other with notice of nonrenewal at least 180 days prior to expirationof any Renewal Term. The Vitol Agreement currently extends through December 31, 2016.Marketing and DistributionThe petroleum business focuses its Coffeyville petroleum product marketing efforts in the central mid-continent area, because of its relative proximity to therefinery and pipeline access. Coffeyville also has access to the Rocky Mountain area. Coffeyville engages in rack marketing, which is the supply of productthrough tanker trucks directly to customers located in close geographic proximity to the refinery and to customers at throughput terminals on the refined productsdistribution systems of Magellan and NuStar. Coffeyville also makes bulk sales (sales into third-party pipelines) into the mid-continent markets and otherdestinations utilizing the product pipeline networks owned by Magellan Midstream Partners, L.P. ("Magellan"), Enterprise Products Partners, L.P. and NuStarEnergy, L.P. The outbound Enterprise Pipeline Red Line provides Coffeyville with access to the NuStar Refined Products Pipeline system. This allows gasolineand ULSD product sales from Kansas up into North Dakota.The Wynnewood refinery ships its finished product via pipeline, railcar, and truck. It focuses its efforts in the southern portion of the Magellan system whichcovers all of Oklahoma, parts of Arkansas as well as eastern Missouri, and all other Magellan terminals. The pipeline system is also able to flow in the oppositedirection, providing access to Texas markets as well as some adjoining states with pipeline connections. Wynnewood also sells jet fuel to the U.S. Department ofDefense via its segregated truck rack and can offer asphalts, solvents and other specialty products via both truck and rail.CustomersCustomers for the refined petroleum products primarily include retailers, railroads, and farm cooperatives and other refiners/marketers in Group 3 of thePADD II region because of their relative proximity to the refineries and pipeline access. The petroleum business sells bulk products to long-standing customers atspot market prices based on a Group 3 basis differential to prices quoted on the New York Mercantile Exchange ("NYMEX"), which are reported by industrymarket-related indices such as Platts and Oil Price Information Service.The petroleum business also has a rack marketing business supplying product through tanker trucks directly to customers located in proximity to theCoffeyville and Wynnewood refineries, as well as to customers located at throughput terminals on refined products distribution systems run by Magellan andNuStar. Rack sales are at posted prices that are influenced by competitor pricing and Group 3 spot market differentials. Additionally, the Wynnewood refinerysupplies jet fuel to the U.S. Department of Defense. For the year ended December 31, 2015, the two largest customers accounted for approximately 14% and 9% ofthe petroleum business net sales and approximately 53% of the petroleum business net sales were made to its ten largest customers.CompetitionThe petroleum business competes primarily on the basis of price, reliability of supply, availability of multiple grades of products and location. The principalcompetitive factors affecting its refining operations are cost of crude oil and other feedstock costs, refinery complexity, refinery efficiency, refinery product mixand product distribution and transportation costs. The location of the refineries provides the petroleum business with a reliable supply of crude oil and atransportation cost advantage over its competitors. The petroleum business primarily competes against five refineries operated in the mid-continent region. Inaddition to these refineries, the refineries compete against trading companies, as well as other refineries located outside the region that are linked to the mid-continent market through an extensive product pipeline system. These competitors include refineries located near the Gulf Coast and the Texas panhandle region.The petroleum business refinery competition also includes branded, integrated and independent oil refining companies, such as Phillips 66 Company, HollyFrontierCorporation, CHS Inc., Valero Energy Corporation and Flint Hills Resources LLC.SeasonalityThe petroleum business experiences seasonal effects as demand for gasoline products is generally higher during the summer months than during the wintermonths due to seasonal increases in highway traffic and road construction work. Demand for diesel fuel is higher during the planting and harvesting seasons. As aresult, the petroleum business' results of operations for the first and fourth calendar quarters are generally lower compared to its results for the second and thirdcalendar11quarters. In addition, unseasonably cool weather in the summer months and/or unseasonably warm weather in the winter months in the markets in which thepetroleum business sells its petroleum products can impact the demand for gasoline and diesel fuel. The demand for asphalt is also seasonal and is generally higherduring the months of March through October.Nitrogen Fertilizer BusinessCVR owns its nitrogen fertilizer business through its interest in CVR Partners. The nitrogen fertilizer business is the only nitrogen fertilizer plant in NorthAmerica that utilizes a pet coke gasification process to produce nitrogen fertilizer products, which are used primarily by farmers to improve the yield and quality oftheir crops. The nitrogen fertilizer facility includes a 1,300 ton-per-day ammonia unit, a 3,000 ton-per-day UAN unit and a gasifier complex having a capacity of89 million standard cubic feet per day of hydrogen. The nitrogen fertilizer business' principal products are UAN and ammonia which are manufactured at itsfacility in Coffeyville, Kansas and sold on a wholesale basis. The nitrogen fertilizer business' product sales are heavily weighted toward UAN.Raw Material Supply The nitrogen fertilizer facility's primary input is pet coke. In contrast, substantially all of the nitrogen fertilizer business' competitors use natural gas as theirprimary raw material feedstock. Historically, pet coke has been less expensive than natural gas on a per ton of fertilizer produced basis. The nitrogen fertilizerfacility's pet coke gasification process results in a significantly higher percentage of fixed costs than a natural gas-based fertilizer plant.During the past five years, over 70% of the nitrogen fertilizer business' pet coke requirements on average were supplied by CVR Refining's adjacent crude oilrefinery pursuant to a renewable long-term agreement. Historically the nitrogen fertilizer business has obtained the remainder of its pet coke requirements fromthird parties such as other Midwestern refineries or pet coke brokers at spot-prices. CVR Partners is party to a pet coke supply agreement with HollyFrontierCorporation. The term of this agreement expires in December 2016. If necessary, the gasification process can be modified to operate on coal as an alternative,which provides an additional raw material source. There are significant supplies of coal within a 60-mile radius of the nitrogen fertilizer plant.Distribution, Sales and MarketingThe primary geographic markets for the nitrogen fertilizer business' fertilizer products are Kansas, Missouri, Nebraska, Iowa, Illinois, Colorado and Texas.The nitrogen fertilizer business markets the UAN products to agricultural customers and the ammonia products to industrial and agricultural customers.UAN and ammonia are distributed by truck or by railcar. If delivered by truck, products are sold on a freight-on-board basis, and freight is normally arrangedby the customer. The nitrogen fertilizer business leases and owns a fleet of railcars for use in product delivery. The nitrogen fertilizer business operates eight railloading and two truck loading racks for UAN. It also operates four rail loading and two truck loading racks for ammonia.The nitrogen fertilizer business owns all of the truck and rail loading equipment at the nitrogen fertilizer facility. The nitrogen fertilizer business also utilizestwo separate UAN storage tanks and related truck and railcar load-out facilities. Each of these facilities, located in Phillipsburg and Dartmouth, Kansas, has a UANstorage tank that has a capacity of two million gallons, or approximately 10,000 tons. The Phillipsburg property that the terminal was constructed on is owned by asubsidiary of CVR Refining, which operates the terminal. The Dartmouth terminal is located on leased property owned by the Pawnee County CooperativeAssociation, which operates the terminal. The purpose of the UAN terminals is to collectively distribute approximately 40,000 tons of UAN fertilizer annually.The nitrogen fertilizer business markets agricultural products to destinations that produce strong margins. The UAN market is primarily located near theUnion Pacific Railroad lines or destinations that can be supplied by truck. The ammonia market is primarily located near the Burlington Northern Santa Fe orKansas City Southern Railroad lines or destinations that can be supplied by truck.The nitrogen fertilizer business often uses forward sales of fertilizer products to optimize its asset utilization, planning process and production scheduling.These sales are made by offering customers the opportunity to purchase product on a forward basis at prices and delivery dates that it proposes. The nitrogenfertilizer business uses this program to varying degrees during the year and between years depending on market conditions and has the flexibility to increase ordecrease forward sales depending on management's view as to whether price environments will be increasing or decreasing. Fixing the selling prices of nitrogenfertilizer products months in advance of their ultimate delivery to customers typically causes the nitrogen fertilizer business reported selling prices and margins todiffer from spot market prices and margins available at the time of shipment.CustomersThe nitrogen fertilizer business sells UAN products to retailers and distributors. In addition, it sells ammonia to agricultural and industrial customers. Some ofits larger customers include Crop Production Services, Inc., Gavilon12Fertilizer, LLC, Interchem, J.R. Simplot, Inc., MFA Incorporated and United Suppliers, Inc. Given the nature of its business, and consistent with industry practice,the nitrogen fertilizer business does not have long-term minimum purchase contracts with its UAN and ammonia customers.For the year ended December 31, 2015 , the top five customers of the nitrogen fertilizer business in the aggregate represented 39% of the nitrogen fertilizerbusiness' net sales. The nitrogen fertilizer business' top two customers accounted for approximately 14% and 10%, respectively, of the nitrogen fertilizer business'net sales.CompetitionCompetition in the nitrogen fertilizer industry is dominated by price considerations. However, during the spring and fall application seasons, farmingactivities intensify and delivery capacity is a significant competitive factor. The nitrogen fertilizer business maintains a large fleet of leased and owned railcars andseasonally adjusts inventory to enhance its manufacturing and distribution operations.The nitrogen fertilizer business' major competitors include Agrium, Inc.; Koch Nitrogen Company, LLC; Potash Corporation of Saskatchewan, Inc.; CFIndustries Holdings, Inc. and Terra Nitrogen Company, LP. Domestic competition is intense due to customers' sophisticated buying tendencies and competitorstrategies that focus on cost and service. The nitrogen fertilizer business also encounters competition from producers of fertilizer products manufactured in foreigncountries. In certain cases, foreign producers of fertilizer who export to the United States may be subsidized by their respective governments.Based on third-party expert data regarding total United States demand for UAN and ammonia, CVR Partners estimates that its nitrogen fertilizer plant's UANcapacity in 2015 represented approximately 7% of total U.S. UAN demand and that the net ammonia produced and marketed at its facility represented less than 1%of total U.S. ammonia demand.SeasonalityBecause the nitrogen fertilizer business primarily sells agricultural commodity products, its business is exposed to seasonal fluctuations in demand fornitrogen fertilizer products in the agricultural industry. As a result, the nitrogen fertilizer business typically generates greater net sales in the first half of eachcalendar year, which is referred to as the planting season, and its net sales tend to be lower during the second half of each calendar year, which is referred to as thefill season.Environmental MattersCVR's petroleum and nitrogen fertilizer businesses are subject to extensive and frequently changing federal, state and local, environmental and health andsafety laws and regulations governing the emission and release of hazardous substances into the environment, the treatment and discharge of waste water, thestorage, handling, use and transportation of petroleum and nitrogen products, and the characteristics and composition of gasoline and diesel fuels. These laws andregulations, their underlying regulatory requirements and the enforcement thereof impact the petroleum business and operations and the nitrogen fertilizer businessand operations by imposing:•restrictions on operations or the need to install enhanced or additional controls;•the need to obtain and comply with permits, licenses and authorizations;•requirements for the investigation and remediation of contaminated soil and groundwater at current and former facilities (if any) and liability for off-sitewaste disposal locations; and•specifications for the products marketed by the petroleum business and the nitrogen fertilizer business, primarily gasoline, diesel fuel, UAN and ammonia.CVR's operations require numerous permits, licenses and authorizations. Failure to comply with these permits or environmental laws and regulations couldresult in fines, penalties or other sanctions or a revocation of CVR's permits. In addition, the laws and regulations to which CVR is subject are often evolving andmany of them have become more stringent or have become subject to more stringent interpretation or enforcement by federal or state agencies. The ultimate impacton CVR's compliance with evolving laws and regulations is not always clearly known or determinable due in part to the fact that its operations may change overtime and certain implementing regulations for laws, such as the federal Clean Air Act, have not yet been finalized, are under governmental or judicial review or arebeing revised. These laws and regulations could result in increased capital, operating and compliance costs.Renewable Fuel StandardsRefer to Part I, Item 1A, Risk Factors-Energy, If sufficient renewable identification numbers ("RINs") are unavailable for purchase, if the petroleum businesshas to pay a significantly higher price for RINs or if the petroleum business is otherwise unable to meet the EPA's RFS mandates, the petroleum business' financialcondition and results of operations could be13materially adversely affected, and Note 17 , " Commitments and Contingencies -Energy," to the consolidated financial statements for further discussion ofRenewable Fuel Standards ("RFS") of the United States Environmental Protection Agency's ("EPA").Safety, Health and Security MattersCVR is subject to a number of federal and state laws and regulations related to safety, including the Occupational Safety and Health Act ("OSHA") andcomparable state statutes, the purpose of which are to protect the health and safety of workers. CVR is subject to OSHA Process Safety Management regulations,which are designed to prevent or minimize the consequences of catastrophic releases of toxic, reactive, flammable or explosive chemicals.CVR operates a comprehensive safety, health and security program, with participation by employees at all levels of the organization. CVR has developedcomprehensive safety programs aimed at preventing OSHA recordable incidents. Despite CVR's efforts to achieve excellence in its safety and health performance,there can be no assurances that there will not be accidents resulting in injuries or even fatalities. CVR routinely audits its programs and consider improvements inits management systems.The Wynnewood refinery has been the subject of a number of OSHA inspections since 2006. As a result of these inspections, the Wynnewood refineryentered into four OSHA settlement agreements in 2008, pursuant to which it has agreed to undertake certain studies, conduct abatement activities, and revise andenhance certain OSHA compliance programs. The remaining costs associated with implementing these studies, abatement activities and program revisions are notexpected to exceed $1 million.Refer to Note 17 , " Commitments and Contingencies -Energy," to the consolidated financial statements for further discussion of OSHA matters related to theWynnewood refinery boiler explosion.EmployeesAs of December 31, 2015 , our Energy segment had 968 employees.As of December 31, 2015 , approximately 54% of the employees at the Coffeyville refinery were covered by a collective bargaining agreement. Theseemployees are affiliated with five unions of the Metal Trades Department of the AFL-CIO ("Metal Trade Unions") and the United Steel, Paper and Forestry,Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC ("United Steelworkers"). The petroleum business is aparty to a collective bargaining agreement with the Metal Trade Unions covering union members who work directly at the Coffeyville refinery. The agreementexpires in March 2019. In addition, a collective bargaining agreement with the United Steelworkers, which covers the balance of the petroleum business' unionizedemployees who work in crude transportation expires in March 2017 and automatically renews on an annual basis thereafter unless a written notice is received sixtydays in advance of the relevant expiration date.As of December 31, 2015 , approximately 59% of the employees employed at the Wynnewood refinery were represented by the International Union ofOperating Engineers. The collective bargaining agreement with the International Union of Operating Engineers with respect to the Wynnewood refinery expires inJune 2017.MetalsBackgroundWe conduct our Metals segment through our indirect wholly owned subsidiary, PSC Metals, Inc. (“PSC Metals”).PSC Metals is principally engaged in the business of collecting, processing and selling ferrous and non-ferrous metals, as well as the processing anddistribution of steel pipe and plate products. PSC Metals collects industrial and obsolete scrap metal, processes it into reusable forms, and supplies the recycledmetals to its customers, including electric-arc furnace mills, integrated steel mills, foundries, secondary smelters and metals brokers. These services are providedthrough PSC Metals' recycling facilities located in eight states. PSC Metals also operates a steel products business that includes the supply of secondary plate andstructural grade pipe that is sold into niche markets for counterweights, piling and foundations, construction materials and infrastructure end-markets.The scrap market in which PSC Metals operates is highly dependent on overall economic conditions in the U.S. and other global markets. Economicconditions in the U.S. were mixed in 2015 as compared to 2014 with the first half of 2015 stronger in PSC Metals' markets and the second half of 2015 morechallenging. Deteriorating economic conditions outside the U.S. combined with a strong U.S. dollar, weakened an already depressed scrap export market, resultingin tons that would have previously been exported being offered to domestic consumers. The strong dollar also encouraged increased steel imports that put pressureon domestic steel mill capacity utilization and resulted in increasing domestic steel inventories in 2015. Also during 2015, iron ore prices dropped significantly,improving the economics of that alternative to processed scrap for steel14producers. The combined effect of these events on the scrap market was increased competition for decreasing domestic demand, and scrap prices falling by end of2015, to the lowest levels since 2009. On the supply side, competition for shredder feedstock remained intense and margins remained under pressure in 2015.Unstable, and decreasing market pricing throughout 2015 had the effect of reducing flows from peddlers and dealers while at the same time reducing margins. Wecannot predict whether, or how long, current market conditions will continue to persist.The Ferrous Scrap Metal BusinessPSC Metals' ferrous products include busheling, plate and structural, shredded, sheared and bundled scrap metal and other purchased scrap metal such asturnings (steel machining fragments), cast furnace iron and broken furnace iron. PSC Metals processes the scrap into a size, density and purity required bycustomers to meet their production needs.PSC Metals purchases processed and unprocessed ferrous scrap metal from various sources, including individuals and traditional scrap yards as well asindustrial manufacturers who recycle the scrap from their metal-forming processes and steel mills who look to PSC Metals to remarket secondary product theywould otherwise scrap. PSC Metals sets the price paid to its suppliers based on market factors such as the demand and price for processed material and theunderlying metal content of the scrap material being purchased. Changes in scrap prices could cause the collection rates of scrap to increase (when prices arehigher) or decrease (when prices are lower). The variation in prices and collection rates can have a significant effect on sales volumes through PSC Metals' scrapyards. Scrap material is processed in PSC Metals' recycling yards where it is shredded, cut, broken, sheared, sorted and classified for use as raw material in thesteel-making process. PSC Metals then sells processed ferrous scrap to end-users such as steel producing mini-mills and integrated steel makers and foundries, aswell as brokers who aggregate materials for other large users. Additionally, a significant amount of valuable, non-ferrous metal is also recovered as a by-product ofthe shredding process, which is sold separately as discussed below.The Non-ferrous Scrap Metal BusinessThe primary non-ferrous commodities that PSC Metals recycles are aluminum, copper, brass, stainless steel and other nickel-bearing metals. Non-ferrousproducts are a significant raw material in the production of aluminum and copper alloys used in manufacturing. The geographic markets for non-ferrous scrap tendto be larger than those for ferrous scrap due to the higher selling prices of non-ferrous metals relative to their weight, which justify the cost of shipping over greaterdistances. Non-ferrous scrap is typically sold on a spot basis, either directly or through brokers, to intermediate or end-users, which include smelters, foundries andaluminum sheet and ingot manufacturers. Prices for non-ferrous scrap are driven by demand for finished non-ferrous metal goods and by the general level ofeconomic activity, with prices generally related to the price of the primary metal on the London Metals Exchange, Chicago Mercantile Exchange or the New YorkCommodity Exchange.StrategyPSC Metals is focused on growing and diversifying its core ferrous business by improving operating efficiencies through better use of its assets, lowering itscost structure and continuing to expand its non-ferrous business through both acquisitions and organic growth. PSC Metals seeks to acquire companies that willenable it to increase and maintain a consistent supply of scrap and capture efficiencies associated with an appropriate level of vertical integration.Raw Materials/CompetitionThe scrap metal recycling industry is highly competitive, cyclical in nature, and commodity-based. Operating results tend to reflect and be amplified bychanges in general global economic conditions, which in turn drive domestic and overseas manufacturing and the consumption of scrap in the production of steeland foundry products. The demand for product and production activity of PSC Metals' scrap consumers drives market pricing levels in PSC Metals' ferrous andnon-ferrous scrap sales. Demand is driven by mill production schedules related to regional manufacturing requirements and service center stocking levels. Due tothe lower selling prices of ferrous metals relative to their weight, raw ferrous scrap is generally purchased locally. Ferrous scrap prices are local and regional innature. Where there are overlapping regional markets, however, prices do not tend to differ significantly between the regions due to the ability of companies to shipscrap metal from one region to another. The most significant limitation on the size of the geographic market for the procurement of ferrous scrap is transportationcost. This leads to significant fluctuations in demand and pricing for PSC Metals' products. The steel products business is less cyclical but is affected by the rate ofsecondary product generated by steel mills generating these products and the market demands in plate and pipe markets.CustomersOur Metals segment had two customers in 2015 that represented approximately 25% of its net sales, one of which individually accounted for approximately19% of its net sales. No other customer accounted for more than 6% of our Metals segment's net sales in 2015.15EmployeesAs of December 31, 2015 , PSC Metals had 666 employees, of which 115 employees were covered by collective bargaining agreements.RailcarBackgroundWe conduct our Railcar segment through our majority ownership interests in American Railcar Industries, Inc. ("ARI") and American Railcar Leasing, LLC("ARL").As discussed further in Note 3 , " Operating Units - Railcar," to the consolidated financial statements, pursuant to a contribution agreement (the "ARLContribution Agreement") dated September 20, 2013 and with a closing date on October 2, 2013 among AEP Rail Corp. ("AEP"), IRL Holding LLC ("IRL"), ARLand IEP Energy Holding LLC, we acquired a 75% economic interest in the newly capitalized ARL. ARL is considered an entity under common control thatrequires us to consolidate the financial results of ARL on an as-if-pooling basis.On August 17, 2012, AEP Leasing LLC ("AEP Leasing"), a wholly owned subsidiary of Icahn Enterprises, was formed for the purpose of leasing railcars.Pursuant to the ARL Contribution Agreement, we contributed AEP Leasing, including its fleet of railcars, to ARL.As of December 31, 2015 , we owned approximately 59.8% of the total outstanding common stock of ARI and had a 75.0% economic interest in ARL.BusinessARI is one of the leading North American designers and manufacturers of hopper and tank railcars. ARI provides its railcar customers with integratedsolutions through a comprehensive set of high-quality products and related services through its manufacturing, leasing and railcar services operations. ARI'smanufacturing consists of railcar manufacturing and railcar and industrial component manufacturing. ARI's Railcar services consist of railcar repair, engineeringand field services.ARL is engaged in the business of leasing railcars to customers with specific requirements whose products require specialized railcars dedicated totransporting, storing, and preserving the integrity of their products. These products are primarily in the energy, food and agriculture, chemical, minerals andpetrochemical industries.ARI’s and ARL’s railcar leasing business consists of railcars manufactured primarily by ARI and leased to third parties under operating leases. ARI’s leasingbusiness is operated under lease management agreements with ARL through which ARL markets ARI’s railcars for sale or lease and acts as ARI’s manager tolease railcars on ARI’s behalf for a fee.ARI is a reporting company under the Exchange Act and files annual, quarterly and current reports, proxy statements and other information with the SEC thatis publicly available.CustomersOur Railcar segment’s primary customers include those that use railcars for freight transport, or shippers, leasing companies, industrial companies and Class Irailroads. In servicing this customer base our Railcar segment believes its comprehensive railcar services offerings and its railcar components manufacturingoperations will help our Railcar segment to further penetrate the general railcar manufacturing and leasing market.Products and ServicesARI designs, manufactures and sells special, customized and general purpose railcars and a wide range of components primarily for the North Americanrailcar and industrial markets. ARI primarily manufactures two types of railcars, hopper and tank railcars, but has the ability to produce additional railcar types. Inaddition, ARI offers these same railcars for lease. ARI also supports the railcar industry by offering a variety of comprehensive railcar repair services, ranging fromfull to light repair, engineering and on-site repairs and maintenance through its various repair facilities, including mobile units and mini shops.ARI and ARL offer customers the option to lease their railcars through various leasing options, including full service leases. Maintenance of leased railcarscan be provided, in part, through ARI's railcar repair and refurbishment facilities. The railcars in ARI's and ARL's lease fleet are leased to shippers with lease termsgenerally ranging from two to ten years. Our Railcar segment's combined railcar lease fleet consists of 45,050 railcars as of December 31, 2015 .ARI's railcar services group focuses on railcar repair, engineering and field services. Its primary customers for services provided by this group are leasingcompanies and shippers of specialty hopper and tank railcars. ARI's railcar services provide it insight into its customers' railcar needs. ARI uses this knowledge toimprove its service and product offerings.16CompetitionThe railcar manufacturing industry has historically been extremely competitive. ARI competes primarily with Trinity Industries, Inc. ("Trinity"), TheGreenbrier Companies, Inc., Freight Car America Inc., National Steel Car Limited and Union Tank Car Company ("Union Tank"). Competitors have expanded andmay continue to expand their capabilities in ARI's core railcar markets.The railcar leasing industry has also been historically extremely competitive. Both ARI and ARL compete primarily with Wells Fargo Rail Corp., GATXCorp., CIT Group, Trinity and Union Tank in the railcar leasing market.EmployeesAs of December 31, 2015 , ARI had 2,407 full-time employees, of which approximately 7% were party to domestic collective bargaining agreements.As of December 31, 2015 , ARL had 57 full-time employees.GamingBackgroundWe conduct our Gaming segment through our majority ownership in Tropicana Entertainment Inc. ("Tropicana").Tropicana is a reporting company under the Exchange Act and files annual, quarterly and current reports, proxy statements and other information with theSEC that are publicly available.As of December 31, 2015 , we owned approximately 67.9% of the total outstanding common stock of Tropicana.BusinessTropicana is an owner and operator of regional casino and entertainment properties located in the United States and one casino resort development located onthe island of Aruba. On April 1, 2014, Tropicana acquired an additional casino resort in Missouri. Tropicana primarily caters to local and regional guests to providea fun and exciting gaming environment with high-quality and high-value lodging, dining, retail and entertainment amenities. Tropicana's properties offer a broadarray of gaming options specifically tailored for its patrons in each market. Tropicana's properties include the following casinos:•Tropicana Laughlin Hotel and Casino - Laughlin, Nevada ;•Lumiére Place Casino - St. Louis, Missouri;•Montbleu Casino Resort & Spa - South Lake Tahoe, Nevada;•Tropicana AC - Atlantic City, New Jersey;•Tropicana Evansville - Evansville, Indiana;•Belle of Baton Rouge Casino and Hotel - Baton Rouge, Louisiana;•Tropicana Greenville - Greenville, Mississippi; and•Tropicana Aruba - Palm Beach, Aruba.CompetitionTropicana owns land-based and riverboat casino facilities in six states and one casino resort located on the island of Aruba. Tropicana competes withnumerous casinos and casino hotels of varying quality and size in the markets in which its properties are located and with other forms of legalized gaming,including state-sponsored lotteries, racetracks, off-track wagering, video lottery, video poker terminals and card parlors. Tropicana also competes with other non-gaming resorts and vacation areas, and with various other entertainment businesses. The casino entertainment business is characterized by competitors that varyconsiderably by their size, quality of facilities, number of operations, brand identities, marketing and growth strategies, financial strength and capabilities, level ofamenities, management talent and geographic diversity.In most markets, Tropicana competes directly with other casino facilities operating in the immediate and surrounding market areas, including casinos locatedon Native American reservations. In some markets, Tropicana faces competition from nearby markets in addition to direct competition within its market areas.Tropicana believes competition in existing markets has intensified over the last several years, due to new markets opening for development, overallchallenging economic conditions and decreased spending on leisure activities. Many casino operators have invested in expanding existing facilities, developingnew facilities, and acquiring established facilities in existing markets. The expansion of casino entertainment at existing properties, the increase in the number ofproperties and the aggressive marketing strategies of many of our competitors has increased competition in many markets in which Tropicana competes, and itexpects this intense competition to continue.17Tropicana's operating results can be adversely affected by costs associated with advertising, promotions and complimentary services to patrons, the amountand timing of which may be affected by the advertising and complimentary policies and actions of its properties' competitors and its efforts to keep pace with them.If Tropicana's operating revenues are insufficient to allow it to match the promotions of competitors, the number of its casino patrons may decline, which may havea material adverse effect on our Gaming segment's financial performance. In addition, some of Tropicana's competitors have significantly greater financialresources than it does, and as a result Tropicana may not be able to successfully compete with them in the future.TrademarksTropicana uses a variety of trade names, service marks and trademarks and has all the rights and licenses necessary to conduct its continuing operations.Tropicana has registered several service marks and trademarks with the United States Patent and Trademark Office or otherwise acquired the licenses to use thosewhich are material to the conduct of its business. Tropicana owns the following federally registered trademarks or service marks that are material to its business:MontBleu, Aztar, Trop, Tropicana, Belle of Baton Rouge, Trop Advantage, the Quarter at Tropicana and Lumiére.Tropicana TrademarksTropicana along with certain entities that own Tropicana Las Vegas (“Tropicana LV”) are parties to a trademark Settlement Agreement (the “SettlementAgreement”) governing the respective rights of the parties to the “Tropicana” trademark. Pursuant to the Settlement Agreement, which became effective onSeptember 28, 2011, the Tropicana LV entities, subject to certain advertising exceptions and other terms and conditions set forth in the Settlement Agreement,have perpetual exclusive rights to use the names, trademarks, and/or service marks (the “Marks”) TROPICANA LAS VEGAS (or TROP LAS VEGAS) andTROPICANA LV (or TROP LV) (the “TLV Marks”, as defined in the Settlement Agreement) in conjunction with its services (“Services”, as defined in theSettlement Agreement) in the City of Las Vegas, Nevada and within a 50-mile radius of the front entrance of the Tropicana Las Vegas Hotel and Casino located at3801 Las Vegas Boulevard South, Las Vegas, Nevada (the “TLV Territory”) along with certain rights to use the TLV Marks on the Internet without geographiclimitation and to register the TLV Marks as domain names. Tropicana and its affiliates, subject to certain advertising exceptions and other terms and conditions setforth in the Settlement Agreement, have perpetual exclusive worldwide rights (excluding the TLV Territory) to use the TROPICANA and TROP Marks coupledwith either a pre-existing identifier of its Services (such as "TROPICANA ENTERTAINMENT" or "TROP ADVANTAGE") or an accurate geographic identifierof the location of a Tropicana Entertainment property (other than LAS VEGAS or the name of any city within the TLV Territory) (the “TE Marks”) along withcertain rights to use the TE Marks on the Internet without geographic limitation and to register the TE Marks as domain names.SeasonalityTropicana's cash flows from operating activities are seasonal in nature. Operating results are traditionally the strongest in the third quarter and traditionallythe weakest during the fourth quarter. Any excess cash flows achieved from operations during the peak seasons are used to subsidize non-peak seasons.Performance in non-peak seasons is usually dependent on favorable weather and a long-weekend holiday calendar. In the event that Tropicana is not able togenerate excess cash flows during the peak seasons, it may not be able to fully subsidize non-peak seasons.Governmental RegulationThe ownership and operation of Tropicana's gaming facilities are subject to pervasive regulation under the laws and regulations of each of the six states inwhich it operates as well as in Aruba where Tropicana operates a small casino. Gaming laws generally are based upon declarations of public policy designed toprotect gaming consumers and the viability and integrity of the gaming industry. Gaming laws also may be designed to protect and maximize state and localrevenues derived through taxes and licensing fees imposed on the gaming industry participants as well as to enhance economic development and tourism. Toaccomplish these public policy goals, gaming laws establish procedures to ensure that participants in the gaming industry meet certain standards of character andfitness.Typically, a jurisdiction's regulatory environment is established by statute and is administered by a regulatory agency with broad discretion to regulate,among other things, the affairs of owners, managers and persons with financial interests in gaming operations.LicensingGaming laws require Tropicana and certain of its subsidiaries, as well as its directors, officers (with respect to corporations), managers (with respect tolimited liability companies), and certain other key employees and, in some cases, certain of its shareholders (with respect to corporations), members (with respectto limited liability companies), and holders of debt securities, to obtain licenses, findings of suitability or other approvals from gaming authorities. Licenses orfindings of18suitability typically require a determination that the applicant is suitable or otherwise qualified to hold the license or the finding of suitability necessary to holdequity, debt securities or position with the gaming licensee or its affiliated entities. Where not mandated by statute, rule or regulation, gaming authorities generallyhave broad discretion in determining who must come forward for suitability and whether an applicant qualifies for licensing or should be deemed suitable orotherwise qualified.Other RegulationsTropicana is subject to various federal, state and local laws and regulations. These laws and regulations include, but are not limited to, restrictions andconditions concerning alcoholic beverages, environmental matters, currency transactions, employees, taxation, zoning and building codes, marketing andadvertising, vessels and permanently moored craft. Such laws and regulations could change or could be interpreted differently in the future, or new laws andregulations could be enacted. Material changes, new laws or regulations, or material differences in interpretations by courts or governmental authorities couldadversely affect Tropicana's business.EmployeesAs of December 31, 2015 , Tropicana had approximately 7,100 employees and had collective bargaining agreements with several unions coveringapproximately 2,700 of those employees, substantially all of whom are employed at Tropicana AC, Lumiére Place Casino, Belle of Baton Rouge and TropicanaEvansville. Tropicana periodically experiences challenges in negotiating collective bargaining agreements with certain unions. In September 2014, a collectivebargaining agreement with UNITE HERE Local 54 covering approximately 1,100 employees at Tropicana AC expired and Tropicana AC is presently operatingwithout an agreement with this union. MiningBackgroundWe conduct our Mining segment through our majority ownership in Ferrous Resources Ltd ("Ferrous Resources"). As discussed below, we obtained controlof and consolidated the results of Ferrous Resources during the second quarter of 2015.Ferrous Resources acquired certain rights to iron ore mineral resources in Brazil and develops mining operations and related infrastructure to produce and selliron ore products to the global steel industry. Ferrous Resources has acquired significant iron ore assets in the State of Minas Gerais, Brazil, known as Viga, VigaNorte, Esperança, Serrinha and Santanense. In addition, Ferrous Resources has acquired certain mineral rights near Jacuípe in the State of Bahia, Brazil. Of theassets acquired, Viga, Esperança and Santanense are already extracting and producing iron ore, while the other assets are at an early stage of exploration.In response to the current depressed iron ore price environment, Ferrous Resources decided to temporarily suspend Esperança's and Santanense's operationsduring the first quarter of 2015 in order to study alternatives to further reduce cost of production and improve product quality and therefore to improve profitabilityand margin per metric ton.AcquisitionOn April 25, 2015, IEP Ferrous Brazil LLC ("IEP Ferrous"), a wholly owned subsidiary of ours, entered into an agreement which provided that IEP Ferrouswould launch a tender offer to purchase any and all of the outstanding shares of Ferrous Resources for $0.36 per share and backstop a certain rights offering of upto $40 million. Prior to the tender offer, IEP Ferrous owned approximately 14.1% of the total outstanding shares of Ferrous Resources. As a result of the tender offer, IEPFerrous obtained control of Ferrous Resources through the purchase of additional shares of Ferrous Resources on June 8, 2015 (the acquisition date), and additionalshares of Ferrous Resources on June 26, 2015 for a combined aggregate tender consideration of $180 million. In addition, on June 26, 2015, pursuant to a certainrights offering, we purchased additional shares of Ferrous Resources for an aggregate consideration of $29 million.As of December 31, 2015 , we owned approximately 77.2% of the total outstanding common stock of Ferrous Resources.StrategyThe economic viability of Ferrous Resources' business is highly dependent on the market price of iron ore. Ferrous Resources' longer-term strategy is toproduce and sell iron ore products in the domestic Brazilian market, as well as to the export markets, principally China, Japan, Korea, the Middle East and alsopotentially Europe. Future revenues will depend on Brazilian and global demand levels for iron ore, iron ore international sales prices, the type of iron ore productit sells and the iron content of those products. Iron ore prices (including sale prices in Brazil) are largely driven by global demand for crude steel, the primarydriver for iron ore demand.19For Ferrous Resources, the key performance driver has historically been from demand for raw materials from Chinese steelmakers. For the period June 1,2015 through December 31, 2015, Ferrous Resources has been concentrating on sales in Brazil, where the best margins are being captured. During the fourthquarter of 2015, both domestic and global steel industries continued to show weakness as steel mills' utilization rates have not recovered and iron ore prices remainweak.CompetitionThe iron ore industry is characterized by intense competition and a high level of market concentration. Ferrous Resources competes with a number of largeinternational mining companies, many of which have mineral and financial resources substantially greater than those of Ferrous Resources.CustomersFerrous Resources currently sells its products in the domestic Brazilian market to two main customers, one of which accounted for 89% of our Miningsegment's net sales for the period June 1, 2015 through December 31, 2015.EmployeesAs of December 31, 2015 , Ferrous Resources had 935 employees.Food PackagingBackgroundWe conduct our Food Packaging segment through our majority ownership in Viskase Companies, Inc. ("Viskase"). As of December 31, 2015 , we ownedapproximately 73.3% of the total outstanding common stock of Viskase.BusinessViskase is a worldwide leader in the production and sale of cellulosic, fibrous and plastic casings for the processed meat and poultry industry. Viskaseoperates nine manufacturing facilities, six distribution centers and three service centers throughout North America, Europe, South America and Asia. Viskaseprovides value-added support services relating to these products for some of the world's largest global consumer products companies. Viskase believes it is one ofthe two largest worldwide producers of non-edible cellulosic casings for processed meats and one of the three largest manufacturers of non-edible fibrous casings.Business StrategyViskase's business strategy is to continue to improve operational efficiencies, product quality and throughput by upgrading existing production facilities andadding resources in high growth markets through new capital investments. Viskase has been successful in implementing production cost-savings initiatives andwill continue to pursue similar opportunities that enhance its profitability and competitive positioning as a leader in the casing market. Opportunities to reduceextrusion, shirring and printing waste are also feasible at several of Viskase's facilities through upgraded equipment and an ongoing effort to redefine product mix.InternationalViskase has seven manufacturing or finishing facilities located outside the continental United States: Monterrey, Mexico; Beauvais, France; Thâon-les-Vosges, France; Caronno, Italy; Warsaw, Poland; Clark Freeport Zone, Philippines; and Atibaia, Brazil. Viskase continues to explore opportunities to expand inemerging markets. Net sales from customers located outside the United States represented approximately 70% of its total net sales in 2015. Viskase's operations inFrance are responsible for distributing products, directly or through distributors, in Europe, Africa, the Middle East and parts of Asia. While overall consumptionof processed meat products in North America and Western Europe is stable, market growth is driven by increasing demand in Eastern Europe, South America andthe Asia Pacific region.EmployeesAs of December 31, 2015 , Viskase had 2,030 employees worldwide, of which 495 employees were covered under collective bargaining agreements.Real EstateBackgroundOur Real Estate operations consist of rental real estate, property development and associated club activities.20Our rental real estate operations consist primarily of retail, office and industrial properties leased to single corporate tenants. As of December 31, 2015 , weowned 15 commercial rental real estate properties. We sold 14 commercial rental properties during the year ended December 31, 2015 . Historically, substantiallyall of our real estate assets leased to others have been net-leased under long-term leases. With certain exceptions, these tenants are required to pay all expensesrelating to the leased property and, therefore, we are typically not responsible for payment of expenses, including maintenance, utilities, taxes, insurance or anycapital items associated with such properties.Our property development operations are run primarily through Bayswater Development LLC, a real estate investment, management and developmentsubsidiary that focuses primarily on the construction and sale of single-family and multi-family homes, lots in subdivisions and planned communities and raw landfor residential development. Our New Seabury development property in Cape Cod, Massachusetts and our Grand Harbor development property in Vero Beach,Florida include land for future residential development of approximately 239 and 1,128 units of residential housing, respectively. Both our developments operategolf and club operations as well. During the year ended December 31, 2015 , we sold the Oak Harbor development and operations in Vero Beach, Florida, whichwas historically operated as part of the Grand Harbor development property. Our long-term investment horizon and operational expertise allow us to acquireproperties with limited current income and complex entitlement and development issues.In addition, our Real Estate segment owns an unfinished development property and a partially developed casino, located on approximately 23 acres in LasVegas, Nevada, which is classified as assets held for sale and is located in other assets in our consolidated balance sheets as of December 31, 2015 .StrategyOur Real Estate business strategy is based on our long-term investment outlook. We maximize the value of our commercial lease portfolio through effectivemanagement of existing properties and disposal of assets on an opportunistic basis. We continue to market our remaining residential product and to build newhomes as market conditions warrant. In keeping with the Real Estate business' strategy of investing capital to grow existing operations, we actively pursue prudentacquisitions of additional commercial and residential properties at favorable prospective returns.SeasonalityResort operations are highly seasonal with peak activity in Cape Cod from June to September and in Florida from November to March. Sales activity for ourreal estate developments in Cape Cod typically peak in late winter and early spring, while in Florida our peak selling season is during the winter months.EmployeesAs of December 31, 2015 , our Real Estate segment had 135 employees. No employees are covered by collective bargaining agreements.Home FashionBackgroundWe conduct our Home Fashion segment through our indirect wholly owned subsidiary, WestPoint Home LLC (“WPH”).We acquired a controlling interest in WestPoint International, Inc. ("WPI") out of bankruptcy on August 8, 2005. In addition, we acquired certain preferredshares in WPI (the "Preferred Shares") during 2006. During 2011, we acquired additional shares of WPI common stock. On December 22, 2011, two of oursubsidiaries, which held WPI's common and Preferred Shares, merged with and into WPI with WPI surviving the merger. As a result of the merger, among otherthings, (i) we became the sole owner of WPI, (ii) the Preferred Shares ceased to exist, (iii) any subscription rights to purchase WPI common stock were cancelledand (iv) minority stockholders of WPI became entitled to receive $3.05 per share for their common stock of WPI.Effective as of March 1, 2012, pursuant to an internal reorganization, WestPoint Home, Inc. (a wholly owned indirect subsidiary of WPI, which hadpreviously comprised our Home Fashion business) merged into our newly created wholly owned indirect subsidiary (which was formed as a Delaware limitedliability company solely for the purposes of such merger) and continued its business as a limited liability company under the name WestPoint Home LLC. Inreferencing WPH, we refer to WestPoint Home Inc. and WestPoint Home LLC interchangeably because the business profile of our Home Fashion segment'sbusiness did not change as a result of this reorganization.BusinessWPH's business consists of manufacturing, sourcing, marketing, distributing and selling home fashion consumer products. WPH differentiates itself in thehome fashion textile industry based on its 200 plus-year heritage of providing its customers21with: (1) a full assortment of home fashion products; (2) good customer service; (3) a superior value proposition; and (4) branded and private label products withstrong consumer recognition. WPH markets a broad range of manufactured and sourced bed, bath, basic bedding and other textile products, including sheets,pillowcases, bedspreads, quilts, comforters and duvet covers, bath and beach towels, bath accessories, bed skirts, bed pillows, flocked blankets, woven blankets andthrows and mattress pads.WPH manufactures and sources its products in a wide assortment of colors and patterns from a variety of fabrics, including chambray, twill, sateen, and froma variety of fibers, including cotton, synthetics and cotton blends. WPH seeks to position its business as a single-source supplier to retailers of home fashionproducts, offering a broad assortment of products across multiple price points. WPH believes that product and price point breadth allows it to provide acomprehensive product offering for each major distribution channel.WPH transitioned the majority of its manufacturing to Bahrain , a low-cost country, and continues to maintain its corporate offices and certain distributionoperations in the United States.StrategyBeginning with its purchase of the assets of WestPoint Stevens in 2005, WPH has been focused on restructuring its business by reducing costs and improvingprofitability. WPH's restructuring process has taken several years and remains on-going. These actions have included moving manufacturing operations overseas,reducing labor costs, attempting to source goods at lower prices and addressing unfavorable licensing arrangements. WPH has also been focused on significantrestructuring in the United States, which has included streamlining its merchandising, sales, customer service, finance divisions and its distribution process.WPH believes its principal manufacturing facility in Bahrain allows it to benefit from competitive labor rates, attractive incentives, low energy costs and afavorable tax treaty. WPH currently has one non-U.S. manufacturing plant and one manufacturing plant and one distribution center in the United States. WPHregularly reviews the possibility of implementing additional cost-saving measures. Brands, Trademarks and LicensesWPH markets its products under trademarks, brand names and private labels, which it uses as merchandising tools to assist its customers in coordinating theirproduct offerings and differentiating their products from those of their competitors.WPH manufactures and sells its own branded line of home fashion products consisting of merchandise bearing registered trademarks that include WestPointHome, Grand Patrician, Martex, Luxor, Modern Living and Vellux.In addition, some of WPH's home fashion products are manufactured and sold pursuant to licensing agreements under designer and brand names that include,among others, IZOD, Southern Tide, Under the Canopy and Portico.Private label brands, also known as “store brands,” are controlled by individual retail customers through use of their own brands or through an exclusivelicense or other arrangement with brand owners. Private label brands provide retail customers with a way to promote consumer loyalty, as the brand is owned andcontrolled by WPH's retail customers and not by WPH. As WPH's customer base has experienced consolidation, there has been an increasing focus on proprietarybranding strategies.The percentage of WPH's net sales derived from the sale of private label branded and unbranded products for 2015 was approximately 39%. For 2015, thepercentage of WPH net sales derived from sales under brands it owns and controls was approximately 36%, and the percentage of WPH net sales derived fromsales under brands owned by third parties pursuant to licensing arrangements with WPH was approximately 25%.CustomersWPH sells its home fashion products to, chain stores, mass merchants, department stores, specialty stores and warehouse clubs, both domestically andinternationally. During 2015, WPH's top four customers accounted for approximately 64% of its net sales, one of which individually accounted for approximately25% of its net sales.CompetitionThe home fashion industry is fragmented and highly competitive. Future success will, to a large extent, depend on WPH's ability to be a competitive low-costproducer. WPH competes with both foreign and domestic companies on, among other factors, the basis of price, quality, design and customer service. WPH mayalso face competition in the future from companies that are currently third-party suppliers to WPH. Future success depends on the ability to remain competitive inthe areas of marketing, product development, price, quality, brand names, manufacturing capabilities, distribution and order processing.EmployeesAs of December 31, 2015 , WPH had 2,051 employees worldwide.22Holding CompanyWe seek to invest our available cash and cash equivalents in liquid investments with a view to enhancing returns as we continue to assess further acquisitionsof, or investments in, operating businesses.As of December 31, 2015 , we had investments with a fair market value of approximately $3.4 billion in the Investment Funds. We may redeem our directinvestment in the Investment Funds upon notice.We conduct our activities in a manner so as not to be deemed an investment company under the Investment Company Act of 1940, as amended, or theInvestment Company Act. Generally, this means that we do not invest or intend to invest in securities as our primary business and that no more than 40% of ourtotal assets will be invested in investment securities as such term is defined in the Investment Company Act. In addition, we intend to structure our investments soas to continue to be taxed as a partnership rather than as a corporation under the applicable publicly traded partnership rules of the Internal Revenue Code of 1986,as amended, or the Code.Available InformationIcahn Enterprises maintains a website at www.ielp.com . We provide access to our annual reports on Form 10-K, quarterly reports on Form 10-Q, currentreports on Form 8-K and all amendments to those reports free of charge through this website as soon as reasonably practicable after such material is electronicallyfiled with the SEC. Paper copies of annual and periodic reports filed with the SEC may be obtained free of charge upon written request by contacting ourheadquarters at the address located on the front cover of this report or under Investor Relations on our website. In addition, our corporate governance guidelines,including Code of Business Conduct and Ethics and Audit Committee Charter, are available on our website (under Corporate Governance) and are available inprint without charge to any stockholder requesting them. You may obtain and copy any document we furnish or file with the SEC at the SEC's public referenceroom at 100 F Street, NE, Room 1580, Washington, D.C. 20549. You may obtain information on the operation of the SEC's public reference facilities by callingthe SEC at 1-800-SEC-0330. The SEC maintains a website that contains reports, information statements, and other information regarding issuers like us who fileelectronically with the SEC. The SEC's website is located at www.sec.gov .Item 1A. Risk Factors.Risks Relating to Our StructureOur general partner and its control person could exercise their influence over us to your detriment.Mr. Icahn, through affiliates, owns 100% of Icahn Enterprises GP, the general partner of Icahn Enterprises and Icahn Enterprises Holdings, andapproximately 89.0% of Icahn Enterprises' outstanding depositary units as of February 29, 2016 , and, as a result, has the ability to influence many aspects of ouroperations and affairs.In addition, if Mr. Icahn were to sell, or otherwise transfer, some or all of his interests in us to an unrelated party or group, a change of control could bedeemed to have occurred under the terms of the indenture governing our senior notes, which would require us to offer to repurchase all outstanding senior notes at101% of their principal amount plus accrued and unpaid interest and liquidated damages, if any, to the date of repurchase. However, it is possible that we will nothave sufficient funds at the time of the change of control to make the required repurchase of notes.We have engaged, and in the future may engage, in transactions with our affiliates.We have invested and may in the future invest in entities in which Mr. Icahn also invests. We also have purchased and may in the future purchase entities orinvestments from him or his affiliates. Although Icahn Enterprises GP has never received fees in connection with our investments, our partnership agreementallows for the payment of these fees. Mr. Icahn may pursue other business opportunities in industries in which we compete and there is no requirement that anyadditional business opportunities be presented to us. We continuously identify, evaluate and engage in discussions concerning potential investments andacquisitions, including potential investments in and acquisitions of affiliates of Mr. Icahn. There cannot be any assurance that any potential transactions that weconsider will be completed.The market for our securities may be volatile.The market for Icahn Enterprises' equity securities may be subject to disruptions that could cause substantial volatility in their prices. In general, economiccrises have caused substantial market volatility and unrest. Any such disruptions or future volatility may adversely affect the value of your securities.23Future cash distributions to Icahn Enterprises' unitholders, if any, can be affected by numerous factors.While we made cash distributions to Icahn Enterprises' unitholders in each of the four quarters of 2015, the payment of future distributions will be determinedby the board of directors of Icahn Enterprises GP, our general partner, quarterly, based on a review of a number of factors, including those described below andother factors that it deems relevant at the time that declaration of a distribution is considered.Our ability to pay distributions will depend on numerous factors, including the availability of adequate cash flow from operations; the proceeds, if any, fromdivestitures; our capital requirements and other obligations; restrictions contained in our financing arrangements; and our issuances of additional equity and debtsecurities. The availability of cash flow in the future depends as well upon events and circumstances outside our control, including prevailing economic andindustry conditions and financial, business and similar factors. No assurance can be given that we will be able to make distributions or as to the timing of anydistribution. If distributions are made, there can be no assurance that holders of depositary units may not be required to recognize taxable income in excess of cashdistributions made in respect of the period in which a distribution is made.Holders of Icahn Enterprises' depositary units have limited voting rights, including rights to participate in our management.Our general partner manages and operates Icahn Enterprises. Unlike the holders of common stock in a corporation, holders of Icahn Enterprises' outstandingdepositary units have only limited voting rights on matters affecting our business. Holders of depositary units have no right to elect the general partner on anannual or other continuing basis, and our general partner generally may not be removed except pursuant to the vote of the holders of not less than 75% of theoutstanding depositary units. In addition, removal of the general partner may result in a default under our debt securities. As a result, holders of depositary unitshave limited say in matters affecting our operations and others may find it difficult to attempt to gain control or influence our activities.Holders of Icahn Enterprises' depositary units may not have limited liability in certain circumstances and may be personally liable for the return ofdistributions that cause our liabilities to exceed our assets.We conduct our businesses through Icahn Enterprises Holdings in several states. Maintenance of limited liability will require compliance with legalrequirements of those states. We are the sole limited partner of Icahn Enterprises Holdings. Limitations on the liability of a limited partner for the obligations of alimited partnership have not clearly been established in several states. If it were determined that Icahn Enterprises Holdings has been conducting business in anystate without compliance with the applicable limited partnership statute or the possession or exercise of the right by the partnership, as limited partner of IcahnEnterprises Holdings, to remove its general partner, to approve certain amendments to the Icahn Enterprises Holdings partnership agreement or to take other actionpursuant to the Icahn Enterprises Holdings partnership agreement, constituted “control” of Icahn Enterprises Holdings' business for the purposes of the statutes ofany relevant state, Icahn Enterprises and/or its unitholders, under certain circumstances, might be held personally liable for Icahn Enterprises Holdings' obligationsto the same extent as our general partner. Further, under the laws of certain states, Icahn Enterprises might be liable for the amount of distributions made to IcahnEnterprises by Icahn Enterprises Holdings.Holders of Icahn Enterprises' depositary units may also be required to repay Icahn Enterprises amounts wrongfully distributed to them. Under Delaware law,we may not make a distribution to holders of our depositary units if the distribution causes our liabilities to exceed the fair value of our assets. Liabilities topartners on account of their partnership interests and nonrecourse liabilities are not counted for purposes of determining whether a distribution is permitted.Delaware law provides that a limited partner who receives such a distribution and knew at the time of the distribution that the distribution violated Delaware lawwill be liable to the limited partnership for the distribution amount for three years from the distribution date.Additionally, under Delaware law an assignee who becomes a substituted limited partner of a limited partnership is liable for the obligations, if any, of theassignor to make contributions to the partnership. However, such an assignee is not obligated for liabilities unknown to him or her at the time he or she became alimited partner if the liabilities could not be determined from the partnership agreement.To service our indebtedness and pay distributions with respect to Icahn Enterprises' depositary units, we require a significant amount of cash. Our ability tomaintain our current cash position or generate cash depends on many factors beyond our control.Our ability to make payments on and to refinance our indebtedness, to pay distributions with respect to Icahn Enterprises' depositary units and to fundoperations depends on existing cash balances and our ability to generate cash in the future. This, to a certain extent, is subject to general economic, financial,competitive, regulatory and other factors that are beyond our control.Our current businesses and businesses that we acquire may not generate sufficient cash to service our debt. In addition, we may not generate sufficient cashflow from operations or investments and future borrowings may not be available to us in an amount sufficient to enable us to service our indebtedness or to fundour other liquidity needs. As of December 31, 2015 , approximately $2.0 billion of required payments will come due in the three-year period ending December 31,2018 with the24first maturity date occurring on March 15, 2017. This amount includes interest on our senior notes as well as principal and interest on mortgages payable. Becausecredit ratings are an important factor influencing our ability to access capital and the terms of any new indebtedness, including covenants and interest rates, ourability to refinance our indebtedness could be adversely affected if our credit ratings were downgraded. We may need to refinance all or a portion of ourindebtedness on or before maturity. We cannot assure you that we will be able to refinance any of our indebtedness on commercially reasonable terms or at all.We are a holding company and depend on the businesses of our subsidiaries to satisfy our obligations.We are a holding company. In addition to cash and cash equivalents, U.S. government and agency obligations and other short-term investments, our assetsconsist primarily of investments in our subsidiaries. Moreover, if we make significant investments in operating businesses, it is likely that we will reduce the liquidassets at Icahn Enterprises and Icahn Enterprises Holdings in order to fund those investments and the ongoing operations of our subsidiaries and in the InvestmentFunds. Consequently, our cash flow and our ability to meet our debt service obligations and make distributions with respect to depositary units likely will dependon the cash flow of our subsidiaries, returns on our interests in the Investment Funds and the payment of funds to us by our subsidiaries in the form of dividends,distributions, loans or otherwise.The operating results of our subsidiaries may not be sufficient to make distributions to us. In addition, our subsidiaries are not obligated to make fundsavailable to us and distributions and intercompany transfers from our subsidiaries to us may be restricted by applicable law or covenants contained in debtagreements and other agreements to which these subsidiaries may be subject or enter into in the future. The terms of certain debt agreements of our subsidiaries, orother entities in which we own equity, restrict dividends, distributions or loans to us. To the degree any distributions and transfers are impaired or prohibited, ourability to make payments on our debt and to make distributions on our depositary units will be limited.We or our subsidiaries may be able to incur substantially more debt.As of December 31, 2015 , we and our subsidiaries had debt of approximately $12.6 billion , of which approximately $5.5 billion pertained to our HoldingCompany.In the future, we and Icahn Enterprises Holdings may incur additional indebtedness if we comply with certain financial tests contained in the indentures thatgovern our senior notes. However, our subsidiaries other than Icahn Enterprises Holdings are not subject to any of the covenants contained in the indenturesgoverning our senior notes. If new debt is added to our and our subsidiaries' current levels, the related risks that we, and they, now face could intensify. In addition,under the indenture governing our senior notes, certain important events, such as leveraged recapitalizations that would increase the level of our indebtedness,would not constitute a change of control.As of December 31, 2015 , based on covenants in the indenture governing our senior notes, we were not permitted to incur additional indebtedness.Our failure to comply with the covenants contained under any of our debt instruments, including the indentures governing our outstanding senior notes,including our failure as a result of events beyond our control, could result in an event of default which would materially and adversely affect our financialcondition.If there were an event of default under one of our debt instruments, the holders of the defaulted debt could cause all amounts outstanding with respect to thatdebt to be due and payable immediately. In addition, any event of default or declaration of acceleration under one debt instrument could result in an event ofdefault under one or more of our other debt instruments. It is possible that, if the defaulted debt is accelerated, our assets and cash flow may not be sufficient tofully repay borrowings under our outstanding debt instruments and we cannot assure you that we would be able to refinance or restructure the payments on thosedebt securities.We may be subject to the pension liabilities of our affiliates.Mr. Icahn, through certain affiliates, owns 100% of Icahn Enterprises GP and approximately 89.0% of Icahn Enterprises' outstanding depositary units as ofFebruary 29, 2016 . Applicable pension and tax laws make each member of a “controlled group” of entities, generally defined as entities in which there is at leastan 80% common ownership interest, jointly and severally liable for certain pension plan obligations of any member of the controlled group. These pensionobligations include ongoing contributions to fund the plan, as well as liability for any unfunded liabilities that may exist at the time the plan is terminated. Inaddition, the failure to pay these pension obligations when due may result in the creation of liens in favor of the pension plan or the Pension Benefit GuarantyCorporation ("PBGC") against the assets of each member of the controlled group.As a result of the more than 80% ownership interest in us by Mr. Icahn’s affiliates, we and our subsidiaries are subject to the pension liabilities of entities inwhich Mr. Icahn has a direct or indirect ownership interest of at least 80%. As a result of our ownership of more than 80% in our subsidiaries, we and oursubsidiaries are subject to the pension liabilities of all entities in which Mr. Icahn has a direct or indirect ownership interest of at least 80%. ACF Industries LLC("ACF"), a related party in which Mr. Icahn has a direct ownership interest exceeding 80%, and Federal-Mogul are the sponsors of several pension plans.25ACF is a manufacturer and fabricator of specialty railcar parts and miscellaneous steel products from which certain of our subsidiaries purchase parts and steelproducts. All the minimum funding requirements of the Code and the Employee Retirement Income Security Act of 1974, as amended by the Pension ProtectionAct of 2006, for these plans have been met as of December 31, 2015 and 2014. If the plans were voluntarily terminated, they would be underfunded byapproximately $589 million and $474 million as of December 31, 2015 and 2014, respectively. These results are based on the most recent information provided bythe plans’ actuaries. These liabilities could increase or decrease, depending on a number of factors, including future changes in benefits, investment returns, and theassumptions used to calculate the liability. As members of the controlled group, we would be liable for any failure of ACF and Federal-Mogul to make ongoingpension contributions or to pay the unfunded liabilities upon a termination of the pension plans of ACF and Federal-Mogul. In addition, other entities now or in thefuture within the controlled group in which we are included may have pension plan obligations that are, or may become, underfunded and we would be liable forany failure of such entities to make ongoing pension contributions or to pay the unfunded liabilities upon termination of such plans.The current underfunded status of the pension plans of ACF and Federal-Mogul requires them to notify the PBGC of certain “reportable events,” such as ifwe cease to be a member of the ACF and Federal-Mogul controlled group, or if we make certain extraordinary dividends or stock redemptions. The obligation toreport could cause us to seek to delay or reconsider the occurrence of such reportable events.Starfire Holding Corporation ("Starfire"), which is 99.4% owned by Mr. Icahn, has undertaken to indemnify us and our subsidiaries from losses resultingfrom any imposition of certain pension funding or termination liabilities that may be imposed on us and our subsidiaries or our assets as a result of being a memberof the Icahn controlled group. The Starfire indemnity (which does not extend to pension liabilities of our subsidiaries that would be imposed on us as a result of ourinterest in these subsidiaries and not as a result of Mr. Icahn and his affiliates holding more than an 80% ownership interest in us, and as such would not extend tothe unfunded pension termination liability for Federal-Mogul) provides, among other things, that so long as such contingent liabilities exist and could be imposedon us, Starfire will not make any distributions to its stockholders that would reduce its net worth to below $250 million. Nonetheless, Starfire may not be able tofund its indemnification obligations to us.We are subject to the risk of becoming an investment company.Because we are a holding company and a significant portion of our assets may, from time to time, consist of investments in companies in which we own lessthan a 50% interest, we run the risk of inadvertently becoming an investment company that is required to register under the Investment Company Act. Registeredinvestment companies are subject to extensive, restrictive and potentially adverse regulations relating to, among other things, operating methods, management,capital structure, dividends and transactions with affiliates. Registered investment companies are not permitted to operate their business in the manner in which weoperate our business, nor are registered investment companies permitted to have many of the relationships that we have with our affiliated companies.In order not to become an investment company required to register under the Investment Company Act, we monitor the value of our investments and structuretransactions with an eye toward the Investment Company Act. As a result, we may structure transactions in a less advantageous manner than if we did not haveInvestment Company Act concerns, or we may avoid otherwise economically desirable transactions due to those concerns. In addition, events beyond our control,including significant appreciation or depreciation in the market value of certain of our publicly traded holdings or adverse developments with respect to ourownership of certain of our subsidiaries, could result in our inadvertently becoming an investment company. If it were established that we were an investmentcompany, there would be a risk, among other material adverse consequences, that we could become subject to monetary penalties or injunctive relief, or both, in anaction brought by the SEC, that we would be unable to enforce contracts with third parties or that third parties could seek to obtain rescission of transactions withus undertaken during the period it was established that we were an unregistered investment company.We may become taxable as a corporation.We believe that we have been and are properly treated as a partnership for federal income tax purposes. This allows us to pass through our income anddeductions to our partners. However, the Internal Revenue Service ("IRS") could challenge our partnership status and we could fail to qualify as a partnership forpast years as well as future years. Qualification as a partnership involves the application of highly technical and complex provisions of the Code. For example, apublicly traded partnership is generally taxable as a corporation unless 90% or more of its gross income is “qualifying” income, which includes interest, dividends,oil and gas revenues, real property rents, gains from the sale or other disposition of real property, gain from the sale or other disposition of capital assets held forthe production of interest or dividends, and certain other items. We believe that in all prior years of our existence at least 90% of our gross income was qualifyingincome and we intend to structure our business in a manner such that at least 90% of our gross income will constitute qualifying income this year and in the future.However, there can be no assurance that such structuring will be effective in all events to avoid the receipt of more than 10% of non-qualifying income. If less than90% of our gross income constitutes qualifying income, we may be subject to corporate tax26on our net income, at a Federal rate of up to 35% plus possible state taxes. Further, if less than 90% of our gross income constituted qualifying income for pastyears, we may be subject to corporate level tax plus interest and possibly penalties. In addition, if we register under the Investment Company Act, it is likely thatwe would be treated as a corporation for U.S. federal income tax purposes. The cost of paying federal and possibly state income tax, either for past years or goingforward could be a significant liability and would reduce our funds available to make distributions to holders of units, and to make interest and principal paymentson our debt securities. To meet the qualifying income test we may structure transactions in a manner which is less advantageous than if this were not aconsideration, or we may avoid otherwise economically desirable transactions.From time to time, legislative proposals have been introduced that, if enacted, could have a material and adverse effect on us. These proposals have includedtaxing publicly traded partnerships engaged in the Investment segment, such as us, as corporations and introducing substantive changes to the definition ofqualifying income, which could make it more difficult or impossible to for us to meet the exception that allows publicly traded partnerships generating qualifyingincome to be treated as partnerships (rather than corporations) for U.S. federal income tax purposes. It is unclear when or if such legislation would be introduced,whether or not such legislation would be enacted, what specific provisions would be included or what the effective date would be, and as a result the ultimateimpact on us of such legislation is uncertain. It is possible that if carried interest legislation were enacted we would be treated as an association, taxable as acorporation, which would materially increase our taxes. As an alternative, we might be required to restructure our operations, and possibly dispose of certainbusinesses, in order to avoid or mitigate the impact of any such legislation.Holders of depositary units may be required to pay tax on their share of our income even if they did not receive cash distributions from us.Because we are treated as a partnership for income tax purposes, holders of units are generally required to pay federal income tax, and, in some cases, state orlocal income tax, on the portion of our taxable income allocated to them, whether or not such income is distributed. Accordingly, it is possible that holders ofdepositary units may not receive cash distributions from us equal to their share of our taxable income, or even equal to their tax liability on the portion of ourincome allocated to them.If we discover significant deficiencies in our internal controls over financial reporting or at any recently acquired entity, it may adversely affect our ability toprovide timely and reliable financial information and satisfy our reporting obligations under federal securities laws, which also could affect the market price ofour depositary units or our ability to remain listed on the NASDAQ Global Select Market, or NASDAQ.Effective internal and disclosure controls are necessary for us to provide reliable financial reports and effectively prevent fraud and to operate successfully asa public company. If we cannot provide reliable financial reports or prevent fraud, our reputation and operating results would be harmed. A “significant deficiency”is a deficiency, or combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough tomerit attention of those responsible for oversight of our financial reporting.To the extent that any material weakness or significant deficiency exists in our consolidated subsidiaries' internal control over financial reporting, suchmaterial weakness or significant deficiency may adversely affect our ability to provide timely and reliable financial information necessary for the conduct of ourbusiness and satisfaction of our reporting obligations under federal securities laws, that could affect our ability to remain listed on NASDAQ. Ineffective internaland disclosure controls could cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price ofour depositary units or the rating of our debt.During the fourth quarter of the year ended December 31, 2015, management of Federal-Mogul determined that it had a material weakness in internal controlover financial reporting related to in the operating effectiveness of its information technology (IT) general controls. More specifically, Federal-Mogul was notconsistently following its processes and procedures during 2015 to execute and monitor change management controls or to restrict or monitor access to certain ofits IT systems. These processes and procedures are intended to ensure that access to financial applications and data is adequately restricted to appropriate personneland that all changes affecting the financial applications and underlying account records are identified, authorized, tested and implemented appropriately.Additionally, as a result of the deficiencies identified, there is a possibility that the effectiveness of business process controls that are dependent on the affected ITsystems or data and financial reports generated from the affected IT systems may be adversely affected.Since we are a limited partnership, you may not be able to pursue legal claims against us in U.S. federal courts.We are a limited partnership organized under the laws of the State of Delaware. Under the federal rules of civil procedure, you may not be able to sue us infederal court on claims other than those based solely on federal law, because of lack of complete diversity. Case law applying diversity jurisdiction deems us to bea citizen of each of our limited partners. Because we are a publicly traded limited partnership, it may not be possible for you to attempt to sue us in a federal courtbecause we have citizenship in all 50 U.S. states and operations in many states. Accordingly, you will be limited to bringing any claims in state court.27Certain members of our management team may be involved in other business activities that may involve conflicts of interest.Certain individual members of our management team may, from time to time, be involved in the management of other businesses, including those owned orcontrolled by Mr. Icahn and his affiliates. Accordingly, these individuals may focus a portion of their time and attention on managing these other businesses.Conflicts may arise in the future between our interests and the interests of the other entities and business activities in which such individuals are involved.We may not realize the potential benefits of our acquisitions.We may expand our existing businesses if appropriate opportunities are identified, as well as use our established businesses as a platform for additionalacquisitions in the same or related areas. Any such acquisition, if consummated, could involve risks not presently faced by us. In addition, we may not realize theanticipated benefits of any such acquisition.Risks Relating to Our BusinessGeneralIn addition to the following risk factors specific to each of our businesses, all of our businesses are subject to the effects of the following:•the threat of terrorism or war;•loss of any of our or our subsidiaries' key personnel;•the unavailability, as needed, of additional financing; and•the unavailability of insurance at acceptable rates.Global economic conditions may have adverse impacts on our businesses and financial condition.Changes in economic conditions could adversely affect our financial condition and results of operations. A number of economic factors, including, but notlimited to, consumer interest rates, consumer confidence and debt levels, retail trends, housing starts, sales of existing homes, the level and availability of mortgagerefinancing, and commodity prices, may generally adversely affect our businesses, financial condition and results of operations. Recessionary economic cycles,higher and protracted unemployment rates, increased fuel and other energy and commodity costs, rising costs of transportation and increased tax rates can have amaterial adverse impact on our businesses, and may adversely affect demand for sales of our businesses' products, or the costs of materials and services utilized intheir operations. These factors could have a material adverse effect on our revenues, income from operations and our cash flows.We and our subsidiaries are subject to cybersecurity risks and other cyber incidents resulting in disruption. Threats to information technology systems associated with cybersecurity risks and cyber incidents or attacks continue to grow. We and our subsidiariesdepend on information technology systems. In addition, certain of our subsidiaries, including in our Gaming segment, collect, process and retain sensitive andconfidential customer information in the normal course of business. Despite the security measures we have in place and any additional measures we mayimplement in the future, our facilities and systems, and those of our third-party service providers, could be vulnerable to security breaches, computer viruses, lostor misplaced data, programming errors, human errors, acts of vandalism or other events. Any disruption of our systems or security breach or event resulting in themisappropriation, loss or other unauthorized disclosure of confidential information, whether by us directly or our third-party service providers, could damage ourreputation, expose us to the risks of litigation and liability, disrupt our business or otherwise affect our results of operations.InvestmentOur Investment segment may be materially and negatively affected by adverse conditions in the global financial markets and the economy generally.There is significant risk that conditions in the global financial markets and the economy generally could deteriorate and experience volatility and illiquidityand these conditions could continue for a significant period of time. In the event that some or all of these conditions occur, the Investment Funds could bematerially and adversely affected in many different ways. Furthermore, difficult market conditions may also increase the risk of default with respect to debtinvestments held by the Investment Funds. Many other factors beyond the control of our Investment segment may adversely affect the Investment Funds,including, without limitation, rising interest rates, inflation, terrorism or political uncertainty.The historical financial information for our Investment segment is not necessarily indicative of its future performance.The financial results of our Investment segment are primarily driven by the performance of the Investment Funds and our interests therein. The historicalconsolidated financial information contained elsewhere in this Report is not indicative of the28future financial results of our Investment segment. In particular, with respect to the historical returns of our Investment segment:•past favorable market conditions and profitable investment opportunities may not occur in the future; and•future returns may be affected by the risks described elsewhere in this Report, including risks of the industries and businesses in which a particular fundinvests.Successful execution of the Investment Funds' activist investment activities involves many risks, certain of which are outside of our control.The success of the Investment Funds' investment strategy may require, among other things: (i) that our Investment segment properly identify companieswhose securities prices can be improved through corporate and/or strategic action or successful restructuring of their operations; (ii) that the Investment Fundsacquire sufficient securities of such companies at a sufficiently attractive price; (iii) that the Investment Funds avoid triggering anti-takeover and regulatoryobstacles while aggregating their positions; (iv) that management of portfolio companies and other security holders respond positively to our proposals; and (v)that the market price of portfolio companies' securities increases in response to any actions taken by the portfolio companies. We cannot assure you that any of theforegoing will succeed.The Investment Funds' investment strategy involves numerous and significant risks, including the risk that we may lose some or all of our investments in theInvestment Funds. This risk may be magnified due to concentration of investments and investments in undervalued securities.Our Investment segment's revenue depends on the investments made by the Investment Funds. There are numerous and significant risks associated with theseinvestments, certain of which are described in this risk factor and in other risk factors set forth herein.Certain investment positions held by the Investment Funds may be illiquid. The Investment Funds may own restricted or non-publicly traded securities andsecurities traded on foreign exchanges. These investments could prevent the Investment Funds from liquidating unfavorable positions promptly and subject theInvestment Funds to substantial losses.At any given time, the Investment Funds' assets may become highly concentrated within a particular company, industry, asset category, trading style orfinancial or economic market. In that event, the Investment Fund's investment portfolio will be more susceptible to fluctuations in value resulting from adverseeconomic conditions affecting the performance of that particular company, industry, asset category, trading style or economic market than a less concentratedportfolio would be. As a result, the Investment Funds' investment portfolio could become concentrated and its aggregate return may be volatile and may be affectedsubstantially by the performance of only one or a few holdings.The Investment Funds seek to invest in securities that are undervalued. The identification of investment opportunities in undervalued securities is a difficulttask, and there are no assurances that such opportunities will be successfully recognized or acquired. While investments in undervalued securities offer theopportunity for above-average capital appreciation, these investments involve a high degree of financial risk and can result in substantial losses. Returns generatedfrom the Investment Funds' investments may not adequately compensate for the business and financial risks assumed.From time to time, the Investment Funds may invest in bonds or other fixed income securities, such as commercial paper and higher yielding (and, therefore,higher risk) debt securities. It is likely that a major economic recession could severely disrupt the market for such securities and may have a material adverseimpact on the value of such securities. In addition, it is likely that any such economic downturn could adversely affect the ability of the issuers of such securities torepay principal and pay interest thereon and increase the incidence of default for such securities.For reasons not necessarily attributable to any of the risks set forth in this Report (for example, supply/demand imbalances or other market forces), the pricesof the securities in which the Investment Funds invest may decline substantially. In particular, purchasing assets at what may appear to be undervalued levels is noguarantee that these assets will not be trading at even more undervalued levels at a future time of valuation or at the time of sale.The prices of financial instruments in which the Investment Funds may invest can be highly volatile. Price movements of forward and other derivativecontracts in which the Investment Funds' assets may be invested are influenced by, among other things, interest rates, changing supply and demand relationships,trade, fiscal, monetary and exchange control programs and policies of governments, and national and international political and economic events and policies. TheInvestment Funds are subject to the risk of failure of any of the exchanges on which their positions trade or of their clearinghouses.29The use of leverage in investments by the Investment Funds may pose a significant degree of risk and may enhance the possibility of significant loss in thevalue of the investments in the Investment Funds.The Investment Funds may leverage their capital if their general partners believe that the use of leverage may enable the Investment Funds to achieve a higherrate of return. Accordingly, the Investment Funds may pledge its securities in order to borrow additional funds for investment purposes. The Investment Funds mayalso leverage its investment return with options, short sales, swaps, forwards and other derivative instruments. The amount of borrowings that the InvestmentFunds may have outstanding at any time may be substantial in relation to their capital. While leverage may present opportunities for increasing the InvestmentFunds' total return, leverage may increase losses as well. Accordingly, any event that adversely affects the value of an investment by the Investment Funds wouldbe magnified to the extent such fund is leveraged. The cumulative effect of the use of leverage by the Investment Funds in a market that moves adversely to theInvestment Funds' investments could result in a substantial loss to the Investment Funds that would be greater than if the Investment Funds were not leveraged.There is no assurance that leverage will be available on acceptable terms, if at all.In general, the use of short-term margin borrowings results in certain additional risks to the Investment Funds. For example, should the securities pledged tobrokers to secure any Investment Fund's margin accounts decline in value, the Investment Funds could be subject to a “margin call,” pursuant to which it musteither deposit additional funds or securities with the broker, or suffer mandatory liquidation of the pledged securities to compensate for the decline in value. In theevent of a sudden drop in the value of any of the Investment Funds' assets, the Investment Funds might not be able to liquidate assets quickly enough to satisfy itsmargin requirements.Any of the Investment Funds may enter into repurchase and reverse repurchase agreements. When the Investment Funds enters into a repurchase agreement,it “sells” securities issued by the U.S. or a non-U.S. government, or agencies thereof, to a broker-dealer or financial institution, and agrees to repurchase suchsecurities for the price paid by the broker-dealer or financial institution, plus interest at a negotiated rate. In a reverse repurchase transaction, the Investment Fund“buys” securities issued by the U.S. or a non-U.S. government, or agencies thereof, from a broker-dealer or financial institution, subject to the obligation of thebroker-dealer or financial institution to repurchase such securities at the price paid by the Investment Funds, plus interest at a negotiated rate. The use of repurchaseand reverse repurchase agreements by any of the Investment Funds involves certain risks. For example, if the seller of securities to the Investment Funds under areverse repurchase agreement defaults on its obligation to repurchase the underlying securities, as a result of its bankruptcy or otherwise, the Investment Funds willseek to dispose of such securities, which action could involve costs or delays. If the seller becomes insolvent and subject to liquidation or reorganization underapplicable bankruptcy or other laws, the Investment Funds' ability to dispose of the underlying securities may be restricted. Finally, if a seller defaults on itsobligation to repurchase securities under a reverse repurchase agreement, the Investment Funds may suffer a loss to the extent it is forced to liquidate its position inthe market, and proceeds from the sale of the underlying securities are less than the repurchase price agreed to by the defaulting seller.The financing used by the Investment Funds to leverage its portfolio will be extended by securities brokers and dealers in the marketplace in which theInvestment Funds invest. While the Investment Funds will attempt to negotiate the terms of these financing arrangements with such brokers and dealers, its abilityto do so will be limited. The Investment Funds are therefore subject to changes in the value that the broker-dealer ascribes to a given security or position, theamount of margin required to support such security or position, the borrowing rate to finance such security or position and/or such broker-dealer's willingness tocontinue to provide any such credit to the Investment Funds. Because the Investment Funds currently have no alternative credit facility which could be used tofinance its portfolio in the absence of financing from broker-dealers, it could be forced to liquidate its portfolio on short notice to meet its financing obligations.The forced liquidation of all or a portion of the Investment Funds' portfolios at distressed prices could result in significant losses to the Investment Funds.The possibility of increased regulation could result in additional burdens on our Investment segment. Changes in tax law could adversely affect us.The Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Reform Act, was enacted into law in July 2010, resulted in new regulationsaffecting almost every part of the financial services industry.The regulatory environment in which our Investment segment operates is subject to further regulation in addition to the rules already promulgated. OurInvestment segment may be adversely affected by the enactment of new or revised regulations, or changes in the interpretation or enforcement of rules andregulations imposed by the SEC, other U.S. or foreign governmental regulatory authorities or self-regulatory organizations that supervise the financial markets.Such changes may limit the scope of investment activities that may be undertaken by the Investment Funds' managers. Any such changes could increase the cost ofour Investment segment's doing business and/or materially adversely impact our profitability. Additionally, the securities and futures markets are subject tocomprehensive statutes, regulations and margin requirements. The SEC, other regulators and self-regulatory organizations and exchanges have taken and areauthorized to take extraordinary actions in the event of market emergencies. The regulation of derivatives transactions and funds that engage in such transactions isan30evolving area of law and is subject to modification by government and judicial action. The effect of any future regulatory change on the Investment Funds and theInvestment segment could be substantial and adverse.In addition, legislative proposals have been introduced that, if enacted, could have a material and adverse effect on us. These proposals have included taxingpublicly traded partnerships engaged in the Investment segment, such as us, as corporations and introducing substantive changes to the definition of qualifyingincome, which could make it more difficult or impossible to for us to meet the exception that allows publicly traded partnerships generating qualifying income tobe treated as partnerships (rather than corporations) of U.S. federal income tax purposes. It is unclear when or if such legislation would be introduced, whether ornot such legislation would be enacted, what specific provisions would be included or what the effective date would be, and as a result the ultimate impact on us ofany such legislation is uncertain. It is possible that if carried interest legislation were enacted we would be treated as an association, taxable as a corporation, whichwould materially increase our taxes. As an alternative, we might be required to restructure our operations, and possibly dispose of certain businesses, in order toavoid or mitigate the impact of any such legislation. We currently cannot predict the outcome of such legislative proposals, including, if enacted, their impact onour operations and financial position.The failure of Mr. Icahn to participate in the management of the Investment Funds could have a material adverse effect on the Investment Funds and on us.The success of the Investment Funds depends upon the ability of our Investment segment to develop and implement investment strategies that achieve theInvestment Funds' investment objectives. Subjective decisions made by employees of our Investment segment may cause the Investment Funds to incur losses or tomiss profit opportunities on which the Investment Funds would otherwise have capitalized. In the event that Mr. Icahn ceases to participate in the management ofthe Investment Funds, the consequences to the Investment Funds and our interest in them could be material and adverse and could lead to the prematuretermination of the Investment Funds. The loss of Mr. Icahn could, therefore, ultimately result in a loss of substantially all of the earnings of our Investmentsegment.The Investment Funds make investments in companies we do not control.Investments by the Investment Funds include investments in debt or equity securities of publicly traded companies that we do not control. Such investmentsmay be acquired by the Investment Funds through open market trading activities or through purchases of securities from the issuer. These investments will besubject to the risk that the company in which the investment is made may make business, financial or management decisions with which our Investment segmentdisagree or that the majority of stakeholders or the management of the company may take risks or otherwise act in a manner that does not serve the best interests ofthe Investment Funds. In addition, the Investment Funds may make investments in which it shares control over the investment with co-investors, which may makeit more difficult for it to implement its investment approach or exit the investment when it otherwise would. If any of the foregoing were to occur, the values of theinvestments by the Investment Funds could decrease and our Investment segment revenues could suffer as a result.The ability to hedge investments successfully is subject to numerous risks.The Investment Funds may utilize financial instruments, both for investment purposes and for risk management purposes in order to (i) protect againstpossible changes in the market value of the Investment Funds' investment portfolios resulting from fluctuations in the securities markets and changes in interestrates; (ii) protect the Investment Funds' unrealized gains in the value of its investment portfolios; (iii) facilitate the sale of any such investments; (iv) enhance orpreserve returns, spreads or gains on any investment in the Investment Funds' portfolio; (v) hedge the interest rate or currency exchange rate on any of theInvestment Funds' liabilities or assets; (vi) protect against any increase in the price of any securities our Investment segment anticipate purchasing at a later date; or(vii) for any other reason that our Investment segment deems appropriate.The success of any hedging activities will depend, in part, upon the degree of correlation between the performance of the instruments used in the hedgingstrategy and the performance of the portfolio investments being hedged. However, hedging techniques may not always be possible or effective in limiting potentialrisks of loss. Since the characteristics of many securities change as markets change or time passes, the success of our Investment segment's hedging strategy willalso be subject to the ability of our Investment segment to continually recalculate, readjust and execute hedges in an efficient and timely manner. While theInvestment Funds may enter into hedging transactions to seek to reduce risk, such transactions may result in a poorer overall performance for the Investment Fundsthan if it had not engaged in such hedging transactions. For a variety of reasons, the Investment Funds may not seek to establish a perfect correlation between thehedging instruments utilized and the portfolio holdings being hedged. Such an imperfect correlation may prevent the Investment Funds from achieving the intendedhedge or expose the Investment Funds to risk of loss. The Investment Funds do not intend to seek to hedge every position and may determine not to hedge against aparticular risk for various reasons, including, but not limited to, because they do not regard the probability of the risk occurring to be sufficiently high as to justifythe cost of the hedge. Our Investment segment may not foresee the occurrence of the risk and therefore may not hedge against all risks.31We are subject to third-party litigation risks attributable to our Investment segment that could result in significant liabilities that could adversely affect ourInvestment operations.Some of the tactics that the Investment Funds may use involve litigation. The Investment Funds could be a party to lawsuits that they initiate or that areinitiated by a company in which the Investment Funds invest, other shareholders, or state and federal governmental bodies. There can be no assurance thatlitigation, once begun, would be resolved in favor of the Investment Funds.In addition, we will be exposed to risk of litigation by third parties or government regulators if our Investment segment's management of the InvestmentFunds is alleged to constitute gross negligence, willful misconduct or dishonesty or breach of contract or organizational documents or to violate applicable law. Insuch actions, we would be obligated to bear legal, settlement and other costs (which may exceed our available insurance coverage). In addition, our rights toindemnification from the applicable Investment Funds may be challenged.The Investment Funds may invest in companies that are based outside of the United States, which may expose the Investment Funds to additional risks nottypically associated with investing in companies that are based in the United States.Investments in securities of non-U.S. issuers (including non-U.S. governments) and securities denominated or whose prices are quoted in non-U.S. currenciespose, to the extent not successfully hedged, currency exchange risks (including blockage, devaluation and non-exchangeability), as well as a range of otherpotential risks, which could include expropriation, confiscatory taxation, imposition of withholding or other taxes on dividends, interest, capital gains or otherincome, political or social instability, illiquidity, price volatility and market manipulation. In addition, less information may be available regarding securities ofnon-U.S. issuers, and non-U.S. issuers may not be subject to accounting, auditing and financial reporting standards and requirements comparable to, or as uniformas, those of U.S. issuers. Transaction costs of investing in non-U.S. securities markets are generally higher than in the United States. There is generally lessgovernment supervision and regulation of exchanges, brokers and issuers than there is in the United States. The Investment Funds may have greater difficultytaking appropriate legal action in non-U.S. courts. Non-U.S. markets also have different clearance and settlement procedures which in some markets have at timesfailed to keep pace with the volume of transactions, thereby creating substantial delays and settlement failures that could adversely affect the Investment Funds'performance. Investments in non-U.S. markets may result in imposition of non-U.S. taxes or withholding on income and gains recognized with respect to suchsecurities. There can be no assurance that adverse developments with respect to such risks will not materially adversely affect the Investment Funds' investmentsthat are held in certain countries or the returns from these investments.The Investment Funds invest in distressed securities, as well as bank loans, asset backed securities and mortgage backed securities.The Investment Funds may invest in securities of U.S. and non-U.S. issuers in weak financial condition, experiencing poor operating results, havingsubstantial capital needs or negative net worth, facing special competitive or product obsolescence problems, or that are involved in bankruptcy or reorganizationproceedings. Investments of this type may involve substantial financial, legal and business risks that can result in substantial, or at times even total, losses. Themarket prices of such securities are subject to abrupt and erratic market movements and above-average price volatility. It may take a number of years for themarket price of such securities to reflect their intrinsic value. In liquidation (both in and out of bankruptcy) and other forms of corporate insolvency andreorganization, there exists the risk that the reorganization either will be unsuccessful (due to, for example, failure to obtain requisite approvals), will be delayed(for example, until various liabilities, actual or contingent, have been satisfied) or will result in a distribution of cash, assets or a new security the value of whichwill be less than the purchase price to the Investment Funds of the security in respect to which such distribution was made and the terms of which may render suchsecurity illiquid.The Investment Funds' investments are subject to numerous additional risks including those described below.•Generally, there are few limitations set forth in the governing documents of the Investment Funds on the execution of their investment activities, whichare subject to the sole discretion of our Investment segment.•The Investment Funds may buy or sell (or write) both call options and put options, and when it writes options, it may do so on a covered or an uncoveredbasis. When the Investment Funds sell (or write) an option, the risk can be substantially greater than when it buys an option. The seller of an uncoveredcall option bears the risk of an increase in the market price of the underlying security above the exercise price. The risk is theoretically unlimited unlessthe option is covered. If it is covered, the Investment Funds would forego the opportunity for profit on the underlying security should the market price ofthe security rise above the exercise price. Swaps and certain options and other custom instruments are subject to the risk of non-performance by the swapcounterparty, including risks relating to the creditworthiness of the swap counterparty, market risk, liquidity risk and operations risk.32•The Investment Funds may engage in short-selling, which is subject to a theoretically unlimited risk of loss because there is no limit on how much theprice of a security may appreciate before the short position is closed out. The Investment Funds may be subject to losses if a security lender demandsreturn of the borrowed securities and an alternative lending source cannot be found or if the Investment Funds are otherwise unable to borrow securitiesthat are necessary to hedge its positions. There can be no assurance that the Investment Funds will be able to maintain the ability to borrow securities soldshort. There also can be no assurance that the securities necessary to cover a short position will be available for purchase at or near prices quoted in themarket.•The ability of the Investment Funds to execute a short selling strategy may be materially adversely impacted by temporary and/or new permanent rules,interpretations, prohibitions and restrictions adopted in response to adverse market events. Regulatory authorities may from time-to-time imposerestrictions that adversely affect the Investment Funds' ability to borrow certain securities in connection with short sale transactions. In addition,traditional lenders of securities might be less likely to lend securities under certain market conditions. As a result, the Investment Funds may not be ableto effectively pursue a short selling strategy due to a limited supply of securities available for borrowing.The Investment Funds may effect transactions through over-the-counter or interdealer markets. The participants in such markets are typically not subjectto credit evaluation and regulatory oversight as are members of exchange-based markets. This exposes the Investment Funds to the risk that acounterparty will not settle a transaction in accordance with its terms and conditions because of a dispute over the terms of the contract (whether or notbona fide) or because of a credit or liquidity problem, thus causing the Investment Fund to suffer a loss. Such “counterparty risk” is accentuated forcontracts with longer maturities where events may intervene to prevent settlement, or where the Investment Funds have concentrated its transactions witha single or small group of its counterparties. The Investment Funds are not restricted from dealing with any particular counterparty or from concentratingany or all of the Investment Funds' transactions with one counterparty.•Credit risk may arise through a default by one of several large institutions that are dependent on one another to meet their liquidity or operational needs,so that a default by one institution causes a series of defaults by other institutions. This systemic risk may materially adversely affect the financialintermediaries (such as prime brokers, clearing agencies, clearing houses, banks, securities firms and exchanges) with which the Investment Fundsinteract on a daily basis.•The efficacy of investment and trading strategies depends largely on the ability to establish and maintain an overall market position in a combination offinancial instruments. The Investment Funds' trading orders may not be executed in a timely and efficient manner due to various circumstances, includingsystems failures or human error. In such event, the Investment Funds might only be able to acquire some but not all of the components of the position, orif the overall positions were to need adjustment, the Investment Funds might not be able to make such adjustment. As a result, the Investment Funds maynot be able to achieve the market position selected by our Investment segment and might incur a loss in liquidating their position.•The Investment Funds assets may be held in one or more accounts maintained for the Investment Fund by its prime broker or at other brokers or custodianbanks, which may be located in various jurisdictions. The prime broker, other brokers (including those acting as sub-custodians) and custodian banks aresubject to various laws and regulations in the relevant jurisdictions in the event of their insolvency. Accordingly, the practical effect of these laws andtheir application to the Investment Funds' assets may be subject to substantial variations, limitations and uncertainties. The insolvency of any of the primebrokers, local brokers, custodian banks or clearing corporations may result in the loss of all or a substantial portion of the Investment Funds' assets or in asignificant delay in the Investment Funds having access to those assets.•The Investment Funds may invest in synthetic instruments with various counterparties. In the event of the insolvency of any counterparty, the InvestmentFunds' recourse will be limited to the collateral, if any, posted by the counterparty and, in the absence of collateral, the Investment Funds will be treated asa general creditor of the counterparty. While the Investment Funds expect that returns on a synthetic financial instrument may reflect those of each relatedreference security, as a result of the terms of the synthetic financial instrument and the assumption of the credit risk of the counterparty, a syntheticfinancial instrument may have a different expected return. The Investment Funds may also invest in credit default swaps.33AutomotiveFederal-Mogul has substantial indebtedness, which could restrict its business activities and could subject Federal-Mogul to significant interest rate risk.Federal-Mogul is permitted by the terms of its debt instruments to incur additional indebtedness, subject to the restrictions therein. Federal-Mogul’s inabilityto generate sufficient cash flow to satisfy its debt obligations, or to refinance its debt obligations on commercially reasonable terms, would have a material adverseeffect on our Automotive segment’s business, financial condition and results of operations. In addition, covenants in Federal-Mogul’s debt agreements could limitits ability to engage in certain transactions and pursue its business strategies, which could adversely affect its liquidity. See Part II, Item 8, Notes to ConsolidatedFinancial Statements, Note 10 , " Debt - Automotive" of this Report for further discussion.Federal-Mogul's indebtedness could:•limit Federal-Mogul’s ability to borrow money for working capital, capital expenditures, debt service requirements or other corporate purposes, guaranteeadditional debt or issue redeemable, convertible of preferred equity;•limit Federal-Mogul’s ability to make distributions or prepay its debt, incur liens, enter into agreements that restrict distributions from restrictedsubsidiaries, sell or otherwise dispose of assets (including capital stock of subsidiaries), enter into transactions with affiliates and merger, consolidate orsell substantially all of its assets;•require Federal-Mogul to dedicate a substantial portion of its cash flow to payments on indebtedness, which would reduce the amount of cash flowavailable to fund working capital, capital expenditures, product development and other corporate requirements;•increase Federal-Mogul’s vulnerability to general adverse economic and industry conditions; and•limit Federal-Mogul’s ability to respond to business opportunities.A significant portion of Federal-Mogul's indebtedness accrues interest at variable rates. To the extent market interest rates rise, the cost of Federal-Mogul'sdebt would increase, thereby adversely affecting our Automotive operations.Federal-Mogul’s restructuring activities and strategic initiatives may affect its short-term liquidity and may not result in the anticipated synergies and costsavings.Federal-Mogul is pursuing a number of organic and inorganic growth activities, restructuring plans, and strategic initiatives to increase and improve itsbusiness and profitability. Federal-Mogul's management believes these activities will enhance its long term shareholder value; however, the investment toeffectuate these activities may have an effect on Federal-Mogul's short term liquidity and may create the need for additional borrowing which may be at higherinterest rates given its current level of indebtedness. In addition, it is possible the achievement of expected synergies and cost savings associated with Federal-Mogul’s restructuring activities will require additional costs or charges to earnings in future periods. It is also possible the expected synergies or returns fromstrategic initiatives may not be achieved. Any costs or charges could adversely effect on Federal-Mogul's business, results of operations, liquidity, and financialcondition.Our Automotive segment may pursue acquisitions or other affiliations that involve inherent risks, any of which may cause it not to realize anticipated benefits,and it may have difficulty integrating the operations of any companies that may be acquired, which may adversely affect our Automotive segment’s operations.In the past, our Automotive segment has grown through acquisitions and may make additional acquisitions in the future as part of its business strategy. Thefull benefits of these acquisitions, however, require integration of manufacturing, administrative, financial, sales, and marketing approaches and personnel. If ourAutomotive segment is unable to successfully integrate its acquisitions, it may not realize the benefits of the acquisitions, its financial results may be negativelyaffected, or additional cash may be required to integrate such operations.In the future, our Automotive segment may not be able to successfully identify suitable acquisition or affiliation opportunities or complete any particularacquisition, combination, affiliation or other transaction on acceptable terms. Our Automotive segment's identification of suitable acquisition candidates andaffiliation opportunities and the integration of acquired business operations involve risks inherent in assessing the values, strengths, weaknesses, risks andprofitability of these opportunities. Such risks include the effects on our Automotive segment's business, diversion of management’s attention and risks associatedwith unanticipated problems or unforeseen liabilities, and may require significant financial resources that would otherwise be used for the ongoing development ofAutomotive segment's business.The difficulties of integration may be increased by the necessity of coordinating geographically dispersed organizations, integrating personnel with disparatebusiness backgrounds and combining different corporate cultures. These difficulties could be further increased to the extent our Automotive segment pursuesacquisition or affiliation opportunities internationally. Our34Automotive segment may not be effective in retaining key employees or customers of the combined businesses. Our Automotive segment may face integrationissues pertaining to the internal controls and operations functions of the acquired companies and also may not realize cost efficiencies or synergies that wereanticipated when selecting the acquisition candidates. Our Automotive segment may experience managerial or other conflicts with its affiliation partners. Any ofthese items could adversely affect our Automotive segment’s results of operations.Our Automotive segment’s failure to identify suitable acquisition or affiliation opportunities may restrict its ability to grow its business. If our Automotivesegment is successful in pursuing future acquisitions or affiliations, it may be required to expend significant funds, incur additional debt and/or issue additionalsecurities, which may materially adversely affect results of operations. If our Automotive segment spends significant funds or incurs additional debt, its ability toobtain financing for working capital or other purposes could decline and it may be more vulnerable to economic downturns and competitive pressures.Our Automotive segment depends on its relationships with its suppliers and a disruption of these relationships or of its suppliers' operations could have amaterial adverse effect on our Automotive segment's business and results of operations.Our Automotive segment's business depends on developing and maintaining productive relationships with its suppliers. Many factors outside our Automotivesegment's control may harm these relationships. For example, financial difficulties that some of our Automotive segment's suppliers may face could increase thecost of the products it purchases from them or might interrupt its source of supply. A disruption of our Automotive segment's supplier relationships or a disruptionin our Automotive segment's suppliers' operations could have a material adverse effect on our Automotive segment's business and results of operations.Adverse conditions in the automotive market adversely affect demand for our Automotive segment's products and expose it to credit risks of its customers.Our Automotive segment's revenues are closely tied to global OE automobile sales, production levels and independent aftermarket parts replacement activity.The OE market is characterized by short-term volatility, with overall expected long-term growth in global vehicle sales and production. Automotive production inthe local markets served by our Automotive segment can be affected by macro-economic factors such as interest rates, fuel prices, consumer confidence,employment trends, regulatory and legislative oversight requirements and trade agreements. A variation in the level of automobile production would affect not onlysales to OE customers but, depending on the reasons for the change, could impact demand from aftermarket customers. In addition, aftermarket demand is affectedby various factors, including the size and composition of the vehicle population and vehicle usage. Our Automotive operations could be adversely affected if theyfail to respond in a timely and appropriate manner to changes in the demand for their products or if they are not able to timely identify or address financial distressof their aftermarket customers.Accounts receivable potentially subject our Automotive segment to concentrations of credit risk. In particular, Federal-Mogul's customer base includesvirtually every significant global automotive manufacturer, numerous Tier 1 automotive suppliers and a large number of distributors and installers of automotiveaftermarket parts. Consolidation in the automotive aftermarket may lead to financial distress for financially weaker customers of our Automotive segment'soperations which, coupled with payment terms that are typically longer than in the OE market, could have a negative effect on Automotive segment's financialresults.Consolidation and market power of our Automotive segment's independent aftermarket customers could negatively affect its financial performance.Our Automotive segment's independent aftermarket customers are continuing to consolidate and gain purchasing power and the ability to demand extendedpayment terms and other pricing concessions. If these trends continue the financial results of our Automotive segment's aftermarket business could be negativelyaffected.Federal-Mogul's operations in foreign countries exposes our Automotive segment to risks related to economic and political conditions, currency fluctuationsand import/export restrictions.Federal-Mogul has manufacturing and distribution facilities in many countries. International operations are subject to certain risks including:•exposure to local economic conditions;•exposure to local political conditions (including the risk of seizure of assets by foreign governments);•currency exchange rate fluctuations (including, but not limited to, material exchange rate fluctuations, such as devaluations) and currency controls;•export and import restrictions;35•restrictions on ability to repatriate foreign earnings;•labor unrest; and•compliance with U.S. laws such as the Foreign Corrupt Practices Act, and local laws prohibiting inappropriate payments.The likelihood of such occurrences and their potential effect on our Federal-Mogul are unpredictable and vary from country to country.Certain of Federal-Mogul's operating entities report their financial condition and results of operations in currencies other than the U.S. dollar (including, butnot limited to Brazilian real, British pound, Chinese yuan renminbi, Czech crown, euro, Indian rupee, Mexican peso, Polish zloty, Russian ruble, South Koreanwon and Swedish krona). In reporting its consolidated statements of operations, Federal-Mogul translates the reported results of these entities into U.S. dollars atthe applicable exchange rates. As a result, fluctuations in the dollar against foreign currencies will affect the value at which the results of these entities are includedwithin Federal-Mogul's consolidated results.Federal-Mogul is exposed to a risk of gain or loss from changes in foreign exchange rates whenever Federal-Mogul, or one of its foreign subsidiaries, entersinto a purchase or sales agreement in a currency other than its functional currency. While Federal-Mogul reduces such exposure by matching most revenues andcosts within the same currency, changes in exchange rates could affect our Automotive operations.Federal-Mogul is subject to possible insolvency of financial counterparties.Federal-Mogul engages in numerous financial transactions and contracts including insurance policies, letters of credit, credit line agreements, financialderivatives, and investment management agreements involving various counterparties. Federal-Mogul is subject to the risk that one or more of these counterpartiesmay become insolvent and therefore be unable to discharge its obligations under such contracts.Federal-Mogul conducts operations through joint ventures which may contain various contractual restrictions and require approval for certain actions by itsjoint venture partners.Certain of Federal-Mogul's operations, including in BRIC growth markets, are conducted through joint ventures and strategic alliances. With respect to thesejoint ventures, Federal-Mogul may share ownership and management responsibilities with one or more partners that may not share the same goals and objectives.Operating a joint venture requires Federal-Mogul to operate the business pursuant to the terms of the agreement that was entered into with its joint venture partners,as well as to share information and decision making. Additional risks associated with joint ventures include one or more partners failing to satisfy contractualobligations, conflicts arising between the joint venture partners, a change in the ownership of any of the joint venture partners and limited ability to controlcompliance with applicable rules and regulations, including the Foreign Corrupt Practices Act and related rules and regulations. Additionally, Federal-Mogul'sability to sell its interest in a joint venture may be subject to contractual and other limitations. Accordingly, any such occurrences could adversely affect ourAutomotive segment's financial condition, operating results and cash flows.The automotive industry is highly competitive and our Automotive segment's success depends upon its ability to compete effectively in the market.Our Automotive segment operates in an extremely competitive industry, driven by global vehicle production volumes and part replacement trends. Businessis typically awarded to the supplier offering the most favorable combination of cost, quality, technology and service. In addition, customers continue to requireperiodic price reductions that require our Automotive segment to continually assess, redefine and improve its operations, products and manufacturing capabilitiesto maintain and improve profitability. In addition, our Automotive segment's competitors' efforts to increase their market share could exert additional downwardpressure on product pricing and margins. There can be no assurance that our Automotive segment will be able to compete effectively in the automotive market.Federal-Mogul's pension obligations and other post-employment benefits could adversely affect its operating margins and cash flows.The automotive industry, like other industries, continues to be affected by the rising cost of providing pension and other post-employment benefits. Inaddition, Federal-Mogul sponsors certain defined benefit plans worldwide that are underfunded and will require cash payments. If the performance of the assets inthe pension plans does not meet our expectations, or other actuarial assumptions are modified, Federal-Mogul's required contributions may be higher than itexpects.36Certain disruptions in supply of and changes in the competitive environment for raw materials could adversely affect Federal-Mogul's operating margins andcash flows.Federal-Mogul purchases a broad range of materials, components and finished parts. Federal-Mogul also uses a significant amount of energy, both electricityand natural gas, in the production of its products. A significant disruption in the supply of these materials, supplies and energy or the failure of a supplier withwhom Federal-Mogul has established a single source supply relationship could decrease production and shipping levels, materially increase operating costs andmaterially adversely affect profit margins. Shortages of materials or interruptions in transportation systems, labor strikes, work stoppages or other interruptions toor difficulties in the employment of labor or transportation in the markets where Federal-Mogul purchases material, components and supplies for the production ofproducts or where the products are produced, distributed or sold, whether as a result of labor strife, war, further acts of terrorism or otherwise, in each case mayadversely affect profitability.In recent periods there have been significant fluctuations in the prices of aluminum, copper, lead, nickel, platinum, resins, steel, other base metals and energythat have had and may continue to have an unfavorable effect on Federal-Mogul's business. Any continued fluctuations in the price or availability of energy andmaterials may have an adverse effect on our Automotive operations. To address increased costs associated with these market forces, a number of Federal-Mogul'ssuppliers have implemented surcharges on existing fixed price contracts. Without the surcharge, some suppliers claim they will be unable to provide adequatesupply. Competitive and marketing pressures may limit Federal-Mogul's ability to pass some of the supply and material cost increases onto its customers and mayprevent Federal-Mogul from doing so in the future. Furthermore, Federal-Mogul's customers are generally not obligated to accept price increases that Federal-Mogul may desire to pass along to them. This inability to pass on price increases to customers when material prices increase rapidly or to significantly higher thanhistoric levels could adversely affect its operating margins and cash flow, possibly resulting in lower operating income and profitability.Federal-Mogul's hedging activities to address commodity price fluctuations may not be successful in offsetting future increases in those costs or may reduce oreliminate the benefits of any decreases in those costs.In order to mitigate short-term variation in operating results due to the aforementioned commodity price fluctuations, Federal-Mogul hedges a portion of near-term exposure to certain raw materials used in production processes, primarily natural gas, copper, nickel, tin, zinc, high-grade aluminum and aluminum alloy. Theresults of Federal-Mogul's hedging practice could be positive, neutral or negative in any period depending on price changes in the hedged exposures.Federal-Mogul's hedging activities are not designed to mitigate long-term commodity price fluctuations and, therefore, will not protect from long-termcommodity price increases. Federal-Mogul's future hedging positions may not correlate to actual energy or raw materials costs, which would cause acceleration inthe recognition of unrealized gains and losses on hedging positions in operating results.Our Automotive segment is subject to a variety of environmental, health and safety laws and regulations and the cost of complying, or our Automotivesegment's failure to comply, with such requirements may have a material adverse effect on our Automotive operations.Our Automotive segment is subject to a variety of federal, state and local environmental laws and regulations relating to the release or discharge of materialsinto the environment, the management, use, processing, handling, storage, transport or disposal of hazardous waste materials, or otherwise relating to the protectionof public and employee health, safety and the environment. These laws and regulations expose our Automotive segment to liability for the environmental conditionof its current facilities, and also may expose it to liability for the conduct of others or for its actions that were in compliance with all applicable laws at the timethese actions were taken. These laws and regulations also may expose our Automotive segment to liability for claims of personal injury or property damage relatedto alleged exposure to hazardous or toxic materials in foreign countries. Despite our Automotive segment's intention to be in compliance with all such laws andregulations, we cannot guarantee that it will at all times be in compliance with all such requirements. The cost of complying with these requirements may alsoincrease substantially in future years. If our Automotive segment violates or fails to comply with these requirements, it could be fined or otherwise sanctioned byregulators. These requirements are complex, change frequently and may become more stringent over time, which could have a material adverse effect on itsbusiness.Our Automotive segment's failure to maintain and comply with environmental permits that it is required to maintain could result in fines or penalties or othersanctions and have a material adverse effect on its operations or results. Future events, such as new environmental regulations or changes in or modifiedinterpretations of existing laws and regulations or enforcement policies, newly discovered information or further investigation or evaluation of the potential healthhazards of products or business activities, may give rise to additional compliance and other costs that could have a material adverse effect on our Automotiveoperations.New regulations related to “conflict minerals” may force us to incur additional expenses and may make our Automotive segment's supply chain morecomplex. In August 2012 the SEC adopted annual disclosure and reporting requirements for those37companies who use certain minerals known as “conflict minerals” mined from the Democratic Republic of Congo and adjoining countries in their products. Thesenew requirements required due diligence efforts in 2013, with initial disclosure requirements beginning in 2014. There will be significant costs associated withcomplying with these disclosure requirements, including for diligence to determine the sources of conflict minerals used in our Automotive segment's products andother potential changes to products, processes or sources of supply as a consequence of such verification activities.A significant labor dispute involving Federal-Mogul or one or more of its customers or suppliers or that could otherwise affect our operations could adverselyaffect Federal-Mogul’s financial performance.A substantial number of Federal-Mogul’s employees and the employees of its largest customers and suppliers are members of industrial trade unions and areemployed under the terms of various labor agreements. Most of Federal-Mogul's unionized manufacturing facilities have their own contracts with their ownexpiration dates. There can be no assurances that future negotiations with the unions will be resolved favorably or that Federal-Mogul will not experience a workstoppage or disruption that could adversely affect its financial condition, operating results and cash flows. A labor dispute involving Federal-Mogul, any of itscustomers or suppliers or any other suppliers to Federal-Mogul’s customers or that otherwise affects Federal-Mogul’s operations, or the inability by it, any of itscustomers or suppliers or any other suppliers to its customers to negotiate, upon the expiration of a labor agreement, an extension of such agreement or a newagreement on satisfactory terms could adversely affect Federal-Mogul’s financial condition, operating results and cash flows. In addition, if any of Federal-Mogul’s significant customers experience a material work stoppage, the customer may halt or limit the purchase of its products. This could require Federal-Mogulto shut down or significantly reduce production at facilities relating to such products, which could adversely affect Federal-Mogul’s business and harm itsprofitability.Our Automotive segment is involved from time to time in legal proceedings and commercial or contractual disputes, which could have an adverse effect on itsprofitability and consolidated financial position.Our Automotive segment is involved in legal proceedings and commercial or contractual disputes that, from time to time, are significant. These are typicallyclaims that arise in the normal course of business including, without limitation, commercial or contractual disputes, including disputes with suppliers, intellectualproperty matters, personal injury claims, environmental issues, tax matters and employment matters. No assurances can be given that such proceedings and claimswill not have a material adverse effect on our Automotive operations.If Federal-Mogul is unable to protect its intellectual property and prevent its improper use by third parties, its ability to compete in the market may be harmed.Various patent, copyright, trade secret and trademark laws afford only limited protection and may not prevent Federal-Mogul's competitors from duplicatingits products or gaining access to its proprietary information and technology. These means also may not permit Federal-Mogul to gain or maintain a competitiveadvantage.Any of Federal-Mogul's patents may be challenged, invalidated, circumvented or rendered unenforceable. Federal-Mogul cannot guarantee that it will besuccessful should one or more of its patents be challenged for any reason and countries outside the United States may diminish the protection of its patents. IfFederal-Mogul's patent claims are rendered invalid or unenforceable, or narrowed in scope, the patent coverage afforded to Federal-Mogul's products could beimpaired, which could significantly impede Federal-Mogul's ability to market its products, negatively affect its competitive position and materially adversely affectour Automotive operations.Federal-Mogul's pending or future patent applications may not result in an issued patent. Additionally, newly issued patents may not provide Federal-Mogulwith meaningful protection against competitors or against competitive technologies. Courts in the United States and in other countries may invalidate Federal-Mogul's patents or find them unenforceable. Competitors may also be able to design around Federal-Mogul's patents. Other parties may develop and obtain patentprotection for more effective technologies, designs or methods. If these developments were to occur, it could have an adverse effect on its sales. If Federal-Mogul'sintellectual property rights are not adequately protected, it may not be able to commercialize its technologies, products or services and its competitors couldcommercialize its technologies, which could result in a decrease in Federal-Mogul's sales and market share, and could materially adversely affect our Automotiveoperations.Federal-Mogul's products could infringe the intellectual property rights of others, which may lead to litigation that could itself be costly, could result in thepayment of substantial damages or royalties, and could prevent Federal-Mogul from using technology that is essential to its products.Federal-Mogul cannot guarantee that its products, manufacturing processes or other methods do not infringe the patents or other intellectual property rights ofthird parties. Infringement and other intellectual property claims and proceedings brought against Federal-Mogul, whether successful or not, could result insubstantial costs and harm its reputation. Such claims and proceedings can also distract and divert management and key personnel from other tasks important to thesuccess of its business. In addition, intellectual property litigation or claims could force Federal-Mogul to do one or more of the following:38•cease selling or using any of products that incorporate the asserted intellectual property, which would adversely affect Federal-Mogul's revenue;•pay substantial damages for past use of the asserted intellectual property;•obtain a license from the holder of the asserted intellectual property, which license may not be available on reasonable terms, if at all; and•redesign or rename, in the case of trademark claims, products to avoid infringing the intellectual property rights of third parties, which may not bepossible and could be costly and time-consuming if it is possible to do.In the event of an adverse determination in an intellectual property suit or proceeding, or Federal-Mogul's failure to license essential technology, Federal-Mogul's sales could be harmed and its costs could increase, which could materially adversely affect our Automotive operations.Our Automotive segment may be exposed to certain regulatory and financial risks related to climate change.Climate change is continuing to receive ever increasing attention worldwide. Many scientists, legislators and others attribute climate change to increasedlevels of greenhouse gases, including carbon dioxide, which could lead to additional legislative and regulatory efforts to limit greenhouse gas emissions. The focuson emissions could increase costs associated with Automotive segment's operations, including costs for raw materials and transportation. Because the scope offuture laws in this area is uncertain, we cannot predict the potential effect of such laws on our Automotive segment's future financial condition, results ofoperations or cash flows.EnergyRisks Related to our Energy Segment as a WholeInstability and volatility in the capital, credit and commodity markets in the global economy could negatively impact our Energy segment's business, financialcondition, results of operations and cash flows.Our Energy segment's business, financial condition and results of operations could be negatively impacted by difficult conditions and volatility in the capital,credit and commodities markets and in the global economy. For example:•Although CVR believes the petroleum business has sufficient liquidity under its ABL credit facility and the intercompany credit facility to operate boththe Coffeyville and Wynnewood refineries, and that the nitrogen fertilizer business has sufficient liquidity under its revolving credit facility to run thenitrogen fertilizer business, under extreme market conditions there can be no assurance that such funds would be available or sufficient, and in such acase, CVR may not be able to successfully obtain additional financing on favorable terms, or at all. Furthermore, the nitrogen fertilizer business' creditfacility matures in April 2016 and there can be no assurance that it will be able to refinance its $125 million of outstanding term loan debt or obtain a newrevolving credit facility on similar terms or at all.•Market volatility could exert downward pressure on the price of CVR Refining's and CVR Partners' common units, which may make it more difficult foreither or both of them to raise additional capital and thereby limit their ability to grow, which could in turn cause CVR's stock price to drop.•The petroleum business' and nitrogen fertilizer business' credit facilities contain various covenants that must be complied with, and if either business isnot in compliance, there can be no assurance that either business would be able to successfully amend the agreement in the future. Further, any suchamendment may be expensive. In addition, any new credit facility the petroleum business or nitrogen fertilizer business may enter into may require themto agree to additional covenants.•Market conditions could result in significant customers experiencing financial difficulties. CVR is exposed to the credit risk of its customers, and theirfailure to meet their financial obligations when due because of bankruptcy, lack of liquidity, operational failure or other reasons could result in decreasedsales and earnings for CVR.39The refineries and nitrogen fertilizer facility face significant risks due to physical damage hazards, environmental liability risk exposure, and unplanned oremergency partial or total plant shutdowns resulting in business interruptions. CVR could incur potentially significant costs to the extent there are unforeseenevents which cause property damage and a material decline in production which are not fully insured. The commercial insurance industry engaged inunderwriting energy industry risk is specialized and there is finite capacity; therefore, the industry may limit or curtail coverage, may modify the coverageprovided or may substantially increase premiums in the future.If any of CVR’s production plants, logistics assets, key pipeline operations serving its plants, or key suppliers sustains a catastrophic loss and operations areshut down or significantly impaired, it would have a material adverse impact on our Energy segment’s operations, financial condition and cash flows. In addition,the risk exposures CVR has at the Coffeyville, Kansas plant complex are greater due to production facilities for refinery and fertilizer production, distribution andstorage being in relatively close proximity and potentially exposed to damage from one incident, such as resulting damages from the perils of explosion,windstorm, fire, or flood. Operations at either or both of the refineries and the nitrogen fertilizer plant could be curtailed, limited or completely shut down for anextended period of time as the result of one or more unforeseen events and circumstances, which may not be within our control, including:•major unplanned maintenance requirements;•catastrophic events caused by mechanical breakdown, electrical injury, pressure vessel rupture, explosion, contamination, fire, or natural disasters,including, floods, windstorms and other similar events;•labor supply shortages, or labor difficulties that result in a work stoppage or slowdown;•cessation or suspension of a plant or specific operations dictated by environmental authorities; and•an event or incident involving a large clean-up, decontamination, or the imposition of laws and ordinances regulating the cost and schedule of demolitionor reconstruction, which can cause significant delays in restoring property to its pre-loss condition.CVR has sustained losses over the past ten-year period at its plants, which are illustrative of the types of risks and hazards that exist. These losses or eventsresulted in costs assumed by us that were not fully insured due to policy retentions or applicable exclusions. These events were as follows:•June 2007: Coffeyville refinery and nitrogen fertilizer plant; flood;•September 2010: Nitrogen fertilizer plant; secondary urea reactor rupture;•December 2010: Coffeyville refinery; FCCU fire;•December 2010: Wynnewood refinery; hydrocracker unit fire;•September 2012: Wynnewood refinery boiler explosion;•July/August 2013: Coffeyville refinery; FCCU outage; and•July 2014: Coffeyville refinery; isomerization unit fire.Currently, CVR is insured under casualty, environmental, property and business interruption insurance policies. The property and business interruptioncoverage has a combined policy limit of $1.25 billion. The property and business interruption insurance policies contain limits and sub-limits which insure all ofCVR's assets. There is potential for a common occurrence to impact both the nitrogen fertilizer plant and Coffeyville refinery in which case the insurancelimitations would apply to all damages combined. Under this insurance program, there is a $10.0 million property damage retention for all properties ($2.5 millionin respect of the nitrogen fertilizer plant). For business interruption losses, the insurance program has a 45-day waiting period retention for any one occurrence. Inaddition, the insurance policies contain a schedule of sub-limits which apply to certain specific perils or areas of coverage. Sub-limits which may be of importancedepending on the nature and extent of a particular insured occurrence are: flood, earthquake, contingent business interruption insuring key suppliers, pipelines andcustomers, debris removal, decontamination, demolition and increased cost of construction due to law and ordinance, and others. Such conditions, limits and sub-limits could materially impact insurance recoveries and potentially cause CVR to assume losses which could impair earnings.There is finite capacity in the commercial insurance industry engaged in underwriting energy industry risk, and there are risks associated with the commercialinsurance industry reducing capacity, changing the scope of insurance coverage offered, and substantially increasing premiums due to adverse loss experience orother financial circumstances. Factors that impact insurance cost and availability include, but are not limited to: industry wide losses, natural disasters, specificlosses incurred by CVR and the investment returns earned by the insurance industry. If the supply of commercial insurance is curtailed due to40highly adverse financial results, CVR may not be able to continue our present limits of insurance coverage or obtain sufficient insurance capacity to adequatelyinsure our risks for property damage or business interruption.Environmental laws and regulations could require CVR to make substantial capital expenditures to remain in compliance or to remediate current or futurecontamination that could give rise to material liabilities.CVR's operations are subject to a variety of federal, state and local environmental laws and regulations relating to the protection of the environment,including those governing the emission or discharge of pollutants into the environment, product specifications and the generation, treatment, storage,transportation, disposal and remediation of solid and hazardous wastes. Violations of these laws and regulations or permit conditions can result in substantialpenalties, injunctive orders compelling installation of additional controls, civil and criminal sanctions, permit revocations and/or facility shutdowns.In addition, new environmental laws and regulations, new interpretations of existing laws and regulations, increased governmental enforcement of laws andregulations or other developments could require CVR to make additional unforeseen expenditures. Many of these laws and regulations are becoming increasinglystringent, and the cost of compliance with these requirements can be expected to increase over time. The requirements to be met, as well as the technology andlength of time available to meet those requirements, continue to develop and change. These expenditures or costs for environmental compliance could have amaterial adverse effect on our Energy segment's results of operations, financial condition and profitability.CVR's facilities operate under a number of federal and state permits, licenses and approvals with terms and conditions containing a significant number ofprescriptive limits and performance standards in order to operate. All of these permits, licenses, approvals, limits and standards require a significant amount ofmonitoring, record-keeping and reporting in order to demonstrate compliance with the underlying permit, license, approval or standard. Noncompliance orincomplete documentation of CVR's compliance status may result in the imposition of fines, penalties and injunctive relief. Additionally, due to the nature ofCVR's manufacturing and refining processes, there may be times when CVR is unable to meet the standards and terms and conditions of these permits, licenses andapprovals due to operational upsets or malfunctions, which may lead to the imposition of fines and penalties or operating restrictions that may have a materialadverse effect on CVR's ability to operate its facilities and accordingly its financial performance.CVR could incur significant cost in cleaning up contamination at its refineries, terminals, fertilizer plant and off-site locations.CVR’s businesses are subject to the occurrence of accidental spills, discharges or other releases of petroleum or hazardous substances into the environment.Past or future spills related to any of our current or former operations, including the refineries, pipelines, product terminals, fertilizer plant or transportation ofproducts or hazardous substances from those facilities, may give rise to liability (including strict liability, or liability without fault, and potential clean-upresponsibility) to governmental entities or private parties under federal, state or local environmental laws, as well as under common law. For example, CVR couldbe held strictly liable under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), and similar state statutes for past orfuture spills without regard to fault or whether our actions were in compliance with the law at the time of the spills. Pursuant to CERCLA and similar state statutes,CVR could be held liable for contamination associated with facilities it currently owns or operates (whether or not such contamination occurred prior to ouracquisition thereof), facilities it formerly owned or operated (if any) and facilities to which it transported or arranged for the transportation of wastes or byproductscontaining hazardous substances for treatment, storage, or disposal.The potential penalties and clean-up costs for past or future releases or spills, liability to third parties for damage to their property or exposure to hazardoussubstances, or the need to address newly discovered information or conditions that may require response actions could be significant and could have a materialadverse effect on our results of operations, financial condition and cash flows. In addition, CVR may incur liability for alleged personal injury or property damagedue to exposure to chemicals or other hazardous substances located at or released from our facilities. CVR may also face liability for personal injury, propertydamage, natural resource damage or for clean-up costs for the alleged migration of contamination or other hazardous substances from its facilities to adjacent andother nearby properties.Four of CVR's facilities, including the Coffeyville refinery, the now-closed Phillipsburg terminal (which operated as a refinery until 1991), the Wynnewoodrefinery and the nitrogen fertilizer plant, have environmental contamination. CVR has assumed Farmland's responsibilities under certain administrative ordersunder the RCRA related to contamination at or that originated from the Coffeyville refinery and the Phillipsburg terminal. The Coffeyville refinery has agreed toassume liability for contamination that migrated from the refinery onto the nitrogen fertilizer plant property while Farmland owned and operated the properties. Atthe Wynnewood refinery, known areas of contamination have been partially addressed but corrective action has not been completed and some portions of theWynnewood refinery have not yet been investigated to determine whether corrective action is necessary. If significant unknown liabilities are identified at ormigrating from any of our facilities, that liability could have a material adverse effect on our results of operations, financial condition and cash flows and may notbe covered by insurance.41CVR may incur future liability relating to the off-site disposal of hazardous wastes. Companies that dispose of, or arrange for the treatment, transportation ordisposal of, hazardous substances at off-site locations may be held jointly and severally liable for the costs of investigation and remediation of contamination atthose off-site locations, regardless of fault. CVR could become involved in litigation or other proceedings involving off-site waste disposal and the damages orcosts in any such proceedings could be material.CVR may be unable to obtain or renew permits necessary for our Energy segment's operations, which could inhibit its ability to do business.CVR holds numerous environmental and other governmental permits and approvals authorizing operations at its facilities. Future expansion of CVR'soperations is also predicated upon securing the necessary environmental or other permits or approvals. A decision by a government agency to deny or delay issuinga new or renewed material permit or approval, or to revoke or substantially modify an existing permit or approval, could have a material adverse effect on itsability to continue operations and on our Energy segment's financial condition, results of operations and cash flows. For example, WRC's OPDES permit hasexpired and is in the renewal process. The refinery timely submitted their renewal application; and therefore, the refinery is authorized to operate under expiredpermit terms and conditions until the state regulatory agency renews the permit. The renewal permit may contain different terms and conditions that would requireunplanned or unanticipated costs.Climate change laws and regulations could have a material adverse effect on our Energy segment's results of operations, financial condition, and cash flows.The EPA regulates green house gas ("GHG") emissions under the Clean Air Act. In October 2009, the EPA finalized a rule requiring certain large emitters ofGHGs to inventory and report their GHG emissions to the EPA. In accordance with the rule, CVR has begun monitoring and reporting its GHG emissions to theEPA. In May 2010, the EPA finalized the "Greenhouse Gas Tailoring Rule," which established new GHG emissions thresholds that determine when stationarysources, such as the refineries and the nitrogen fertilizer plant, must obtain permits under the New Source Review/Prevention of Significant Deterioration ("PSD")and Title V programs of the federal Clean Air Act. Under the rule, facilities already subject to PSD and Title V programs that increase their emissions of GHGs bya significant amount are required to undergo PSD review and to evaluate and implement air pollution control technology, known as "best available controltechnology," to reduce GHG emissions.In the meantime, in December 2010, the EPA reached a settlement agreement with numerous parties under which it agreed to promulgate NSPS to regulateGHG emissions from petroleum refineries and electric utilities by November 2012. In September 2014, the EPA indicated that the petroleum refining sector riskrule, proposed in June 2014 to address air toxics and volatile organic compounds from refineries, may make it unnecessary for the EPA to regulate GHG emissionsfrom petroleum refineries at this time. The final rule, which was published in the Federal Register on December 1, 2015, places additional emission controlrequirements and work practice standards on FCCUs, storage tanks, flares, coking units and other equipment at petroleum refineries. Therefore, we expect that theEPA will not be issuing NSPS standards to regulate GHG from the refineries at this time but that it may do so in the future.During the State of the Union address in each of the last three years, President Obama indicated that the United States should take action to address climatechange. At the federal legislative level, this could mean Congressional passage of legislation adopting some form of federal mandatory GHG emission reduction,such as a nationwide cap-and-trade program. It is also possible that Congress may pass alternative climate change bills that do not mandate a nationwide cap-and-trade program and instead focus on promoting renewable energy and energy efficiency.In addition to potential federal legislation, a number of states have adopted regional greenhouse gas initiatives to reduce carbon dioxide and other GHGemissions. In 2007, a group of Midwest states, including Kansas (where the Coffeyville refinery and the nitrogen fertilizer facility are located), formed theMidwestern Greenhouse Gas Reduction Accord, which calls for the development of a cap-and-trade system to control GHG emissions and for the inventory ofsuch emissions. However, the individual states that have signed on to the accord must adopt laws or regulations implementing the trading scheme before itbecomes effective. To date, Kansas has taken no meaningful action to implement the accord, and it's unclear whether Kansas intends to do so in the future.Alternatively, the EPA may take further steps to regulate GHG emissions. The implementation of EPA regulations and/or the passage of federal or stateclimate change legislation may result in increased costs to (i) operate and maintain our facilities, (ii) install new emission controls on our facilities and(iii) administer and manage any GHG emissions program. Increased costs associated with compliance with any current or future legislation or regulation of GHGemissions, if it occurs, may have a material adverse effect on our Energy segment's results of operations, financial condition and cash flows.In addition, climate change legislation and regulations may result in increased costs not only for our business but also users of our refined and fertilizerproducts, thereby potentially decreasing demand for our products. Decreased demand for our products may have a material adverse effect on our Energy segment'sresults of operations, financial condition and cash flows.42CVR is subject to strict laws and regulations regarding employee and process safety, and failure to comply with these laws and regulations could have amaterial adverse effect on our Energy segment's results of operations, financial condition and cash flows.CVR is subject to the requirements of OSHA and comparable state statutes that regulate the protection of the health and safety of workers, and the properdesign, operation and maintenance of our equipment. In addition, OSHA and certain environmental regulations require that we maintain information abouthazardous materials used or produced in our operations and that we provide this information to employees and state and local governmental authorities. Failure tocomply with these requirements, including general industry standards, record keeping requirements and monitoring and control of occupational exposure toregulated substances, may result in significant fines or compliance costs, which could have a material adverse effect on our Energy segment's results of operations,financial condition and cash flows.Deliberate, malicious acts, including terrorism, could damage CVR's facilities, disrupt its operations or injure employees, contractors, customers or the publicand result in liability to our Energy operations.Intentional acts of destruction could hinder CVR's sales or production and disrupt its supply chain. CVR's facilities could be damaged or destroyed, reducingits operational production capacity and requiring it to repair or replace its facilities at substantial cost. Employees, contractors and the public could suffersubstantial physical injury for which CVR could be liable. Governmental authorities may impose security or other requirements that could make CVR's operationsmore difficult or costly. The consequences of any such actions could adversely affect our Energy segment's operating results, financial condition and cash flows.Both the petroleum and nitrogen fertilizer businesses depend on significant customers and the loss of one or several significant customers may have a materialadverse impact on our Energy segment's results of operations, financial condition and cash flows.The petroleum and nitrogen fertilizer businesses both have a significant concentration of customers. Given the nature of our Energy segment's businesses, andconsistent with industry practice, our Energy segment does not have long-term minimum purchase contracts with any of its customers. The loss of several of ourEnergy segment's significant customers, or a significant reduction in purchase volume by several of them, could have a material adverse effect on our Energysegment's results of operations, financial condition and cash flows. See Part I, "Business - Energy," of this Report for further discussion regarding concentration ofcustomers.The acquisition and expansion strategy of CVR's petroleum business and the nitrogen fertilizer business involves significant risks.Both CVR's petroleum business and the nitrogen fertilizer business will consider pursuing acquisitions and expansion projects in order to continue to growand increase profitability. However, CVR may not be able to consummate such acquisitions or expansions, due to intense competition for suitable acquisitiontargets, the potential unavailability of financial resources necessary to consummate acquisitions and expansions, difficulties in identifying suitable acquisitiontargets and expansion projects or in completing any transactions identified on sufficiently favorable terms and the failure to obtain requisite regulatory or othergovernmental approvals. In addition, any future acquisitions and expansions may entail significant transaction costs and risks associated with entry into newmarkets and lines of business.In addition to the risks involved in identifying and completing acquisitions described above, even when acquisitions are completed, integration of acquiredentities can involve significant difficulties, such as: •unforeseen difficulties in the integration of the acquired operations and disruption of the ongoing operations of CVR's business;•failure to achieve cost savings or other financial or operating objectives contributing to the accretive nature of an acquisition;•strain on the operational and managerial controls and procedures of the petroleum business and the nitrogen fertilizer business, and the need to modifysystems or to add management resources;•difficulties in the integration and retention of customers or personnel and the integration and effective deployment of operations or technologies;•assumption of unknown material liabilities or regulatory non-compliance issues;•amortization of acquired assets, which would reduce future reported earnings;•possible adverse short-term effects on our Energy segment's cash flows or operating results; and•diversion of management's attention from the ongoing operations of our Energy segment's business.43In addition, in connection with any potential acquisition or expansion project, CVR Refining or CVR Partners (as applicable) will need to consider whether abusiness they intend to acquire or expansion project they intend to pursue could affect their tax treatment as a partnership for federal income tax purposes. If thepetroleum business or the nitrogen fertilizer business is otherwise unable to conclude that the activities of the business being acquired or the expansion projectwould not affect its treatment as a partnership for federal income tax purposes, it may elect to seek a ruling from the IRS. Seeking such a ruling could be costly or,in the case of competitive acquisitions, place the business in a competitive disadvantage compared to other potential acquirers who do not seek such a ruling. If thepetroleum business or the nitrogen fertilizer business is unable to conclude that an activity would not affect its treatment as a partnership for federal income taxpurposes, and is unable or unwilling to obtain an IRS ruling, the petroleum business or the nitrogen fertilizer business may choose to acquire such business ordevelop such expansion project in a corporate subsidiary, which would subject the income related to such activity to entity-level taxation, which would reduce theamount of cash available for distribution to the unitholders and would likely cause a substantial reduction in the value of its common units.Failure to manage these acquisition and expansion growth risks could have a material adverse effect on our Energy segment's results of operations, financialcondition and cash flows. There can be no assurance that CVR will be able to consummate any acquisitions or expansions, successfully integrate acquired entities,or generate positive cash flow at any acquired company or expansion project.Internally generated cash flows and other sources of liquidity may not be adequate for the capital needs of CVR's businesses.CVR's businesses are capital intensive, and working capital needs may vary significantly over relatively short periods of time. For instance, crude oil pricevolatility can significantly impact working capital on a week-to-week and month-to-month basis. If CVR cannot generate adequate cash flow or otherwise securesufficient liquidity to meet our Energy segment's working capital needs or support its short-term and long-term capital requirements, it may be unable to meet itsdebt obligations, pursue its business strategies or comply with certain environmental standards, which would have a material adverse effect on our Energysegment's business and results of operations.A substantial portion of CVR's workforce is unionized and it is subject to the risk of labor disputes and adverse employee relations, which may disrupt itsbusiness and increase its costs.As of December 31, 2015, approximately 54% of the employees at the Coffeyville refinery and 59% of the employees at the Wynnewood refinery wererepresented by labor unions under collective bargaining agreements. At Coffeyville, the collective bargaining agreement with five Metal Trades Unions (whichcovers union represented employees who work directly at the Coffeyville refinery) expires in March 2019. The collective bargaining agreement with the UnitedSteelworkers (which covers the balance of the petroleum business' unionized employees, who work in crude transportation) expires in March 2017, andautomatically renews on an annual basis thereafter unless a written notice is received sixty days in advance of the relevant expiration date. The collectivebargaining agreement with the International Union of Operating Engineers with respect to the Wynnewood refinery expires in June 2017. Our Energy segment maynot be able to renegotiate our collective bargaining agreements when they expire on satisfactory terms or at all. A failure to do so may increase our costs. Inaddition, CVR's existing labor agreements may not prevent a strike or work stoppage at any of our facilities in the future, and any work stoppage could negativelyaffect our Energy segment's results of operations, financial condition and cash flows.New regulations concerning the transportation, storage and handling of hazardous chemicals, risks of terrorism and the security of chemical manufacturingfacilities could result in higher operating costs.The costs of complying with future regulations relating to the transportation, storage and handling of hazardous chemicals and security associated with therefining and nitrogen fertilizer facilities may have a material adverse effect on our Energy segment's results of operations, financial condition and cash flows.Targets such as refining and chemical manufacturing facilities may be at greater risk of future terrorist attacks than other targets in the United States. As a result,the petroleum and chemical industries have responded to the issues that arose due to the terrorist attacks on September 11, 2001 by starting new initiatives relatingto the security of petroleum and chemical industry facilities and the transportation of hazardous chemicals in the United States. Future terrorist attacks could lead toeven stronger, more costly initiatives that could result in a material adverse effect on our Energy segment's results of operations, financial condition and cash flows.The 2013 fertilizer plant explosion in West, Texas has generated consideration of more restrictive measures in storage, handling and transportation of cropproduction materials, including fertilizers.Compliance with and changes in the tax laws could adversely affect CVR's performance.CVR is subject to extensive tax liabilities, including United States and state income taxes and transactional taxes such as excise, sales/use, payroll, franchiseand withholding taxes. New tax laws and regulations are continuously being enacted or proposed that could result in increased expenditures for tax liabilities in thefuture.44CVR Refining's and CVR Partners' level of indebtedness may increase, which would reduce their financial flexibility and the distributions they make on theircommon units.As of the date of this Report, our Energy segment had significant indebtedness outstanding. In the future, CVR Refining and CVR Partners may incuradditional significant indebtedness in order to make future acquisitions, expand their businesses or develop their properties. Their respective levels of indebtednesscould affect their operations in several ways, including the following:•a significant portion of their cash flows could be used to service their indebtedness, reducing available cash and their ability to make distributions on theircommon units (including distributions to CVR);•a high level of debt would increase their vulnerability to general adverse economic and industry conditions;•the covenants contained in their debt agreements will limit their ability to borrow additional funds, dispose of assets, pay distributions and make certaininvestments;•a high level of debt may place them at a competitive disadvantage compared to competitors that are less leveraged, and therefore may be able to takeadvantage of opportunities that their indebtedness would prevent them from pursuing;•their debt covenants may also affect flexibility in planning for, and reacting to, changes in the economy and in their industries;•a high level of debt may make it more likely that a reduction in the petroleum business' borrowing base following a periodic redetermination could requireCVR Refining to repay a portion of its then-outstanding bank borrowings under its ABL credit facility; and•a high level of debt may impair their ability to obtain additional financing in the future for working capital, capital expenditures, debt servicerequirements, acquisitions, general corporate or other purposes.In addition, borrowings under their respective credit facilities and other credit facilities they may enter into in the future will bear interest at variable rates. Ifmarket interest rates increase, such variable-rate debt will create higher debt service requirements, which could adversely affect their ability to make distributionsto common unitholders (including CVR).In addition to debt service obligations, their operations require substantial investments on a continuing basis. Their ability to make scheduled debt payments,to refinance debt obligations and to fund capital and non-capital expenditures necessary to maintain the condition of operating assets, properties and systemssoftware, as well as to provide capacity for the growth of their businesses, depends on their respective financial and operating performance. General economicconditions and financial, business and other factors affect their operations and their future performance. Many of these factors are beyond their control. They maynot be able to generate sufficient cash flows to pay the interest on their debt, and future working capital, borrowings or equity financing may not be available to payor refinance such debt.In addition, the bank borrowing base under CVR Refining's ABL credit facility will be subject to periodic redeterminations. It could be forced to repay aportion of its bank borrowings due to redeterminations of its borrowing base. If it is forced to do so, it may not have sufficient funds to make such repayments. IfCVR Refining does not have sufficient funds and is otherwise unable to negotiate renewals of its borrowings or arrange new financing, it may have to sellsignificant assets. Any such sale could have a material adverse effect on CVR Refining's business and financial condition and, as a result, its ability to makedistributions to common unitholders (including CVR).CVR Refining and CVR Partners may not be able to generate sufficient cash to service all of their indebtedness and may be forced to take other actions tosatisfy their debt obligations that may not be successful.CVR Refining's and CVR Partners' ability to satisfy their debt obligations will depend upon, among other things:•their future financial and operating performance, which will be affected by prevailing economic conditions and financial, business, regulatory and otherfactors, many of which are beyond CVR's control; and•CVR Refining's ability to borrow under its ABL Credit Facility and the intercompany credit facility between CVR Refining and us, and CVR Partner'sability to borrow under its revolving credit facility, the availability of which depends on, among other things, compliance with their respective covenants.CVR cannot offer any assurance that its businesses will generate sufficient cash flow from operations, or that CVR Refining will be able to draw under itsABL credit facility or the intercompany credit facility, or that CVR Partners will be able to draw under its revolving credit facility, or from other sources offinancing, in an amount sufficient to fund their respective liquidity needs.If cash flows and capital resources are insufficient to service their indebtedness, CVR Refining or CVR Partners may be forced to reduce or delay capitalexpenditures, sell assets, seek additional capital or restructure or refinance their indebtedness.45These alternative measures may not be successful and may not permit them to meet their scheduled debt service obligations. Their ability to restructure orrefinance debt will depend on the condition of the capital markets and their financial condition at such time. Any refinancing of their debt could be at higherinterest rates and may require them to comply with more onerous covenants, which could further restrict their business operations, and the terms of existing orfuture debt agreements may restrict us from adopting some of these alternatives. In addition, in the absence of adequate cash flows or capital resources, they couldface substantial liquidity problems and might be required to dispose of material assets or operations, or sell equity, in order to meet their debt service and otherobligations. They may not be able to consummate those dispositions for fair market value or at all. CVR Refining's Amended and Restated ABL Credit Facility andthe indenture governing its 6.5% senior notes and CVR Partners' credit facility may restrict, or market or business conditions may limit, their ability to availthemselves of some or all of these options. Furthermore, any proceeds that CVR realizes from any such dispositions may not be adequate to meet their debt serviceobligations when due. None of CVR's stockholders or any of their respective affiliates has any continuing obligation to provide CVR with debt or equity financing.The borrowings under CVR Refining's Amended and Restated ABL Credit Facility and intercompany credit facility and CVR Partners' revolving creditfacility bear interest at variable rates and other debt CVR or they incur could likewise be variable-rate debt. If market interest rates increase, variable-rate debt willcreate higher debt service requirements, which could adversely affect their respective distributions to us. CVR Refining or CVR Partners may enter intoagreements limiting their exposure to higher interest rates, but any such agreements may not offer complete protection from this risk.Covenants in CVR's debt instruments could limit its ability to incur additional indebtedness and engage in certain transactions, which could adversely affectour Energy segment's liquidity and its ability to pursue its business strategies.The indenture governing CVR Refining's notes and the ABL credit facility and CVR Partners' credit facility contain a number of restrictive covenants that willimpose significant operating and financial restrictions on them and their subsidiaries and may limit their ability to engage in acts that may be in their long-term bestinterest, including restrictions on their ability, among other things, to:•incur, assume or guarantee additional debt or issue redeemable or preferred units;•make distributions or prepay, redeem, or repurchase certain debt;•enter into agreements that restrict distributions from restricted subsidiaries;•incur liens;•sell or otherwise dispose of assets, including capital stock of subsidiaries;•enter into transactions with affiliates; and•merge, consolidate or sell substantially all of their assets. In particular, the indenture governing CVR Refining's 2022 Notes prohibits it from making distributions to unitholders (including us) if any default or event ofdefault (as defined in the indenture) exists. In addition, the indenture governing CVR Refining's 2022 Notes contains covenants limiting CVR Refining's ability topay distributions to unitholders. The covenants will apply differently depending on CVR Refining's fixed charge coverage ratio (as defined in the indenture). If thefixed charge coverage ratio is not less than 2.5 to 1.0, CVR Refining will generally be permitted to make restricted payments, including distributions to itsunitholders, without substantive restriction. If the fixed charge coverage ratio is less than 2.5 to 1.0, CVR Refining will generally be permitted to make restrictedpayments, including distributions to its unitholders, up to an aggregate $100.0 million basket plus certain other amounts referred to as "incremental funds" underthe indenture. In addition, CVR Refining's Amended and Restated ABL Credit Facility requires it to maintain a minimum excess availability under the facility as acondition to the payment of distributions to its unitholders. CVR Partners' credit facility requires that, before CVR Partners can make distributions to CVR, it mustbe in compliance with leverage ratio and interest coverage ratio tests. Any new indebtedness could have similar or greater restrictions.A breach of the covenants under the foregoing debt instruments could result in an event of default. Upon a default, unless waived, the holders of CVRRefining's 2022 Notes and lenders under CVR Refining's Amended and Restated ABL Credit Facility and CVR Partners' credit facility would have all remediesavailable to a secured lender, and could elect to terminate their commitments, cease making further loans, institute foreclosure proceedings against CVR Refiningor CVR Partners (as applicable) or its respective subsidiaries' assets, and force it and its subsidiaries into bankruptcy or liquidation, subject to intercreditoragreements. In addition, any defaults could trigger cross defaults under other or future credit agreements or indentures. CVR Refining's or CVR Partners' operatingresults may not be sufficient to service their indebtedness or to fund CVR's other expenditures and they may not be able to obtain financing to meet theserequirements. As a result of these restrictions, they may be limited in how they conduct their respective businesses, unable to raise additional debt or equity46financing to operate during general economic or business downturns or unable to compete effectively or to take advantage of new business opportunities.Despite their indebtedness, CVR Refining and CVR Partners may still be able to incur significantly more debt, including secured indebtedness. This couldintensify the risks described above.CVR Refining and CVR Partners may be able to incur substantially more debt in the future, including secured indebtedness. Although CVR Refining's ABLcredit facility and the 2022 Notes and CVR Partners' credit facility contain restrictions on the incurrence of additional indebtedness, these restrictions are subject toa number of qualifications and exceptions and, under certain circumstances, indebtedness incurred in compliance with these restrictions could be substantial. Also,these restrictions may not prevent them from incurring obligations that do not constitute indebtedness. To the extent such new debt or new obligations are added totheir existing indebtedness, the risks described above could substantially increase.Risks Related to the Limited Partnership Structures Through WhichCVR Currently Hold its Interests in the Refinery Business and the Nitrogen Fertilizer BusinessBoth CVR Refining and CVR Partners currently have in place a policy to distribute all of the “available cash” each generates on a quarterly basis, whichcould limit their ability to grow and make acquisitions .The current policies of both the board of directors of CVR Refining's general partner and CVR Partners' general partner is to distribute an amount equal to theavailable cash generated by each partnership each quarter to their respective unitholders. As a result of their respective cash distribution policies, CVR Refiningand CVR Partners will rely primarily upon external financing sources, including commercial bank borrowings and the issuance of debt and equity securities, tofund acquisitions and expansion capital expenditures. As such, to the extent they are unable to finance growth externally, their respective cash distribution policieswill significantly impair their ability to grow. The board of directors of the general partner of either CVR Refining or CVR Partners may modify or revoke its cashdistribution policy at any time at its discretion, including in such a manner that would result in an elimination of cash distributions regardless of the amount ofavailable cash they generate. Each board of directors will determine the cash distribution policy it deems advisable for them on an independent basis.In addition, because of their respective distribution policies, their growth, if any, may not be as robust as that of businesses that reinvest their available cash toexpand ongoing operations. To the extent either issues additional units in connection with any acquisitions or expansion capital expenditures or as in-kinddistributions, current unitholders will experience dilution and the payment of distributions on those additional units will decrease the amount each distributes inrespect of each of its outstanding units. There are no limitations in their respective partnership agreements on either CVR Refining's or CVR Partners' ability toissue additional units, including units ranking senior to the outstanding common units. The incurrence of additional commercial borrowings or other debt to financetheir growth strategy would result in increased interest expense, which, in turn, would reduce the available cash they have to distribute to unitholders (includingCVR and us).Each of CVR Refining and CVR Partners may not have sufficient available cash to pay any quarterly distribution on their respective common units.Furthermore, neither is required to make distributions to holders of its common units on a quarterly basis or otherwise, and both may elect to distribute lessthan all of their respective available cash.Either or both of CVR Refining or CVR Partners may not have sufficient available cash each quarter to enable the payment of distributions to commonunitholders. CVR Refining and CVR Partners are separate public companies, and available cash generated by one of them will not be used to make distributions tocommon unitholders of the other. Furthermore, their respective partnership agreements do not require either to pay distributions on a quarterly basis or otherwise.The board of directors of the general partner of either CVR Refining or CVR Partners may at any time, for any reason, change its cash distribution policy or decidenot to make any distribution. The amount of cash they will be able to distribute in respect of their common units principally depends on the amount of cash theygenerate from operations, which is directly dependent upon the margins each business generates. Please see "- Risks Related to CVR's Petroleum Business - Theprice volatility of crude oil and other feedstocks, refined products and utility services may have a material adverse effect on our profitability and our ability to paydistributions to unitholders" and "- Risks Related to CVR's Nitrogen Fertilizer Business - The nitrogen fertilizer business is, and nitrogen fertilizer prices are,cyclical and highly volatile, and the nitrogen fertilizer business has experienced substantial downturns in the past. Cycles in demand and pricing could potentiallyexpose the nitrogen fertilizer business to significant fluctuations in its operating and financial results and have a material adverse effect on our results of operations,financial condition and cash flows."If either of CVR Refining or CVR Partners were to be treated as a corporation, rather than as a partnership, for U.S. federal income tax purposes or if eitherPartnership were otherwise subject to entity-level taxation, such entity's cash available for distribution to its common unitholders, including to us, would bereduced, likely causing a substantial reduction in the value of such its common units, including the common units held by CVR and us.47Current law requires CVR Refining and CVR Partners to derive at least 90% of their respective annual gross income from certain specified activities in orderto continue to be treated as a partnership, rather than as a corporation, for U.S. federal income tax purposes. One or both of them may not find it possible to meetthis qualifying income requirement, or may inadvertently fail to meet this qualifying income requirement. If either CVR Refining or CVR Partners were to betreated as a corporation for U.S. federal income tax purposes, they would pay U.S. federal income tax on all of their taxable income at the corporate tax rate, whichis currently a maximum of 35%, they would likely pay additional state and local income taxes at varying rates, and distributions to their common unitholders,including to us, would generally be taxed as corporate distributions.If CVR Refining and CVR Partners were to be treated as corporations, rather than as partnerships, for U.S. federal income tax purposes or if they wereotherwise subject to entity-level taxation, their cash available for distribution to its common unitholders, including to CVR, and the value of their common units,including the common units held by CVR, could be substantially reduced.CVR may have liability to repay distributions that are wrongfully distributed to it.Under certain circumstances, CVR may, as a holder of common units in CVR Refining and CVR Partners, have to repay amounts wrongfully returned ordistributed to us. Under the Delaware Revised Uniform Limited Partnership Act, a partnership may not make distributions to its unitholders if the distributionwould cause its liabilities to exceed the fair value of its assets. Delaware law provides that for a period of three years from the date of an impermissibledistribution, limited partners who received the distribution and who knew at the time of the distribution that it violated Delaware law will be liable to the companyfor the distribution amount.Public investors own approximately 47% of the nitrogen fertilizer business through CVR Partners and approximately 34% of the petroleum business throughCVR Refining. Although CVR owns the majority of the common units and the general partner of both CVR Refining and CVR Partners, the general partnersowe a duty of good faith to public unitholders, which could cause them to manage their respective businesses differently than if there were no publicunitholders.Public investors own approximately 47% of CVR Partners' common units and approximately 34% of CVR Refining's common units. CVR is not entitled toreceive all of the cash generated by the nitrogen fertilizer business or the petroleum business or freely transfer money from the nitrogen fertilizer business tofinance operations at the petroleum business or vice versa. Furthermore, although we continue to own the majority of the common units and the general partner ofboth CVR Refining and CVR Partners, the general partners are subject to certain fiduciary duties, which may require the general partners to manage theirrespective businesses in a way that may differ from CVR's best interests.The general partners of CVR Refining and CVR Partners have limited their liability, replaced default fiduciary duties and restricted the remedies available tocommon unitholders, including CVR, for actions that, without these limitations and reductions might otherwise constitute breaches of fiduciary duty.The respective partnership agreements of CVR Refining and CVR Partners limit the liability and replace the fiduciary duties of their respective generalpartner, while also restricting the remedies available to each partnership's common unitholders, including CVR, for actions that, without these limitations andreductions, might constitute breaches of fiduciary duty. Delaware partnership law permits such contractual reductions of fiduciary duty. The partnershipagreements contain provisions that replace the standards to which each general partner would otherwise be held by state fiduciary duty law. For example, thepartnership agreements:•permit each partnership's general partner to make a number of decisions in its individual capacity, as opposed to its capacity as general partner. Thisentitles its general partner to consider only the interests and factors that it desires, and means that it has no duty or obligation to give any consideration toany interest of, or factors affecting, any limited partner.•provide that each partnership's general partner will not have any liability to unitholders for decisions made in its capacity as general partner so long as (i)in the case of CVR Partners, it acted in good faith, meaning it believed that the decision was in the best interest of CVR Partners and (ii) in the case ofCVR Refining, it did not make such decisions in bad faith, meaning it believed that the decisions were adverse to CVR Refining's interests.•provide that each partnership's general partner and the officers and directors of its general partner will not be liable for monetary damages to commonunitholders, including CVR, for any acts or omissions unless there has been a final and non-appealable judgment entered by a court of competentjurisdiction determining that (i) in the case of CVR Partners, the general partner or its officers or directors acted in bad faith or engaged in fraud or willfulmisconduct, or in, the case of a criminal matter, acted with knowledge that the conduct was criminal and (ii) in the case of CVR Refining, such losses orliabilities were the result of the conduct of its general partner or such officer or director engaged in by it in bad faith or with respect to any criminalconduct, with the knowledge that its conduct was unlawful.48In addition, CVR Refining's partnership agreement provides that its general partner will not be in breach of its obligations thereunder or its duties to CVRRefining or its limited partners if a transaction with an affiliate or the resolution of a conflict of interest is either (i) approved by the conflicts committee of itsboard of directors of the general partner, although the general partner is not obligated to seek such approval; or (ii) approved by the vote of a majority of theoutstanding units, excluding any units owned by the general partner and its affiliates. In addition, CVR Partners' partnership agreement (i) generally provides thataffiliated transactions and resolutions of conflicts of interest not approved by the conflicts committee of the board of directors of its general partner and notinvolving a vote of unitholders must be on terms no less favorable to CVR Partners than those generally being provided to or available from unrelated third partiesor be “fair and reasonable” to CVR Partners, as determined by its general partner in good faith, and that, in determining whether a transaction or resolution is “fairand reasonable,” the general partner may consider the totality of the relationships between the parties involved, including other transactions that may beparticularly advantageous or beneficial to affiliated parties, including CVR and (ii) provides that in resolving conflicts of interest, it will be presumed that inmaking its decision, the general partner or its conflicts committee acted in good faith, and in any proceeding brought by or on behalf of any holder of commonunits, the person bringing or prosecuting such proceeding will have the burden of overcoming such presumption.With respect to the common units that CVR owns, it has agreed to be bound by the provisions set forth in each partnership agreement, including theprovisions described above.CVR Refining and CVR Partners are managed by the executive officers of their general partners, some of whom are employed by and serve as part of thesenior management team of CVR and its affiliates. Conflicts of interest could arise as a result of this arrangement.CVR Refining and CVR Partners are each managed by the executive officers of their general partners, some of whom are employed by and serve as part ofthe senior management team of CVR. Furthermore, although both CVR Refining and CVR Partners have entered into services agreements with CVR under whichthey compensate CVR for the services of its management, CVR's management is not required to devote any specific amount of time to the petroleum business orthe nitrogen fertilizer business and may devote a substantial majority of their time to the business of CVR. Moreover CVR may terminate the services agreementwith CVR Refining or CVR Partners at any time, in each case subject to a 180-day notice period. In addition, key executive officers of CVR, including itspresident and chief executive officer, chief financial officer and general counsel, will face conflicts of interest if decisions arise in which CVR Refining, CVRPartners and CVR has conflicting points of view or interests.Risks Relating to CVR's Petroleum BusinessThe price volatility of crude oil and other feedstocks, refined products and utility services may have a material adverse effect on our Energy segment'searnings, profitability and cash flows.Our Energy segment's petroleum business' financial results are primarily affected by the relationship, or margin, between refined product prices and the pricesfor crude oil and other feedstocks. When the margin between refined product prices and crude oil and other feedstock prices tightens, the petroleum business'earnings, profitability and cash flows are negatively affected. Refining margins historically have been volatile and are likely to continue to be volatile, as a result ofa variety of factors including fluctuations in prices of crude oil, other feedstocks and refined products. Continued future volatility in refining industry margins maycause a decline in the petroleum business' results of operations, since the margin between refined product prices and crude oil and other feedstock prices maydecrease below the amount needed for the petroleum business to generate net cash flow sufficient for its needs. The effect of changes in crude oil prices on thepetroleum business' results of operations therefore depends in part on how quickly and how fully refined product prices adjust to reflect these changes. Asubstantial or prolonged increase in crude oil prices without a corresponding increase in refined product prices, or a substantial or prolonged decrease in refinedproduct prices without a corresponding decrease in crude oil prices, could have a significant negative impact on our Energy segment's earnings, results ofoperations and cash flows.Profitability is also impacted by the ability to purchase crude oil at a discount to benchmark crude oils, such as WTI, as the petroleum business does notproduce any crude oil and must purchase all of the crude oil it refines. Crude oil differentials can fluctuate significantly based upon overall economic and crude oilmarket conditions. Adverse changes in crude oil differentials can adversely impact refining margins, earnings and cash flows. In addition, the petroleum business'purchases of crude oil, although based on WTI prices, have historically been at a discount to WTI because of the proximity of the refineries to the sources, existinglogistics infrastructure and quality differences. Any change in the sources of crude oil, infrastructure or logistical improvements or quality differences could resultin a reduction of the petroleum business' historical discount to WTI and may result in a reduction of our Energy segment's cost advantage.Refining margins are also impacted by domestic and global refining capacity. Downturns in the economy reduce the demand for refined fuels and, in turn,generate excess capacity. In addition, the expansion and construction of refineries49domestically and globally can increase refined fuel production capacity. Excess capacity can adversely impact refining margins, earnings and cash flows. TheArabian Gulf and Far East regions have added refining capacity in 2015 and 2016.The petroleum business is significantly affected by developments in the markets in which it operates. For example, numerous pipeline projects in 2014expanded the connectivity of the Cushing and Permian Basin markets to the gulf coast, resulting in a decrease in the domestic crude advantage.Volatile prices for natural gas and electricity also affect the petroleum business' manufacturing and operating costs. Natural gas and electricity prices havebeen, and will continue to be, affected by supply and demand for fuel and utility services in both local and regional markets.If CVR is required to obtain its crude oil supply without the benefit of a crude oil supply agreement, its exposure to the risks associated with volatile crude oilprices may increase and our Energy segment's liquidity may be reduced .Since December 31, 2009, the petroleum business has obtained substantially all of its crude oil supply for the Coffeyville refinery, other than the crude oil itgathers, through the Vitol Agreement. The Vitol Agreement was amended and restated on August 31, 2012 to include the provision of crude oil intermediationservices to the Wynnewood refinery. The agreement, which currently extends through December 31, 2016, minimizes the amount of in-transit inventory andmitigates crude oil pricing risk by ensuring pricing takes place close to the time the crude oil is refined and the yielded products are sold. If the petroleum businesswere required to obtain its crude oil supply without the benefit of a supply intermediation agreement, its exposure to crude oil pricing risk may increase, despiteany hedging activity in which it may engage, and its liquidity could be negatively impacted due to increased inventory, potential need to post letters of credit andnegative impacts of market volatility. There is no assurance that the petroleum business will be able to renew or extend the Vitol Agreement beyond December 31,2016.Disruption of the petroleum business' ability to obtain an adequate supply of crude oil could reduce its liquidity and increase its costs.In addition to the crude oil the petroleum business gathers locally in Kansas, Nebraska, Oklahoma, Missouri, Colorado and Texas, it also purchased additionalcrude oil to be refined into liquid fuels in 2015. In 2015, the Coffeyville refinery purchased an additional 65,000 to 70,000 bpd of crude oil while the Wynnewoodrefinery purchased approximately 45,000 to 50,000 bpd of crude oil. The Wynnewood refinery has historically acquired most of its crude oil from Texas andOklahoma with smaller amounts purchased from other regions. The Coffeyville refinery and Wynnewood refinery obtained a portion of its non-gathered crude oil,approximately 23% and 1%, respectively, in 2015, from Canada. The actual amount of Canadian crude oil the petroleum business purchases is dependent onmarket conditions and will vary from year to year. The petroleum business is subject to the political, geographic, and economic risks attendant to doing businesswith Canada. Disruption of production for any reason could have a material impact on the petroleum business. In the event that one or more of its traditionalsuppliers becomes unavailable, the petroleum business may be unable to obtain an adequate supply of crude oil, or it may only be able to obtain crude oil atunfavorable prices. As a result, the petroleum business may experience a reduction in its liquidity and its results of operations could be materially adverselyaffected.If CVR's access to the pipelines on which the petroleum business relies for the supply of its crude oil and the distribution of its products is interrupted, itsinventory and costs may increase and it may be unable to efficiently distribute its products .If one of the pipelines on which either of the Coffeyville or Wynnewood refineries relies for supply of crude oil becomes inoperative, the petroleum businesswould be required to obtain crude oil through alternative pipelines or from additional tanker trucks, which could increase its costs and result in lower productionlevels and profitability. Similarly, if a major refined fuels pipeline becomes inoperative, the petroleum business would be required to keep refined fuels ininventory or supply refined fuels to its customers through an alternative pipeline or by additional tanker trucks, which could increase our Energy segment'sbusiness costs and result in a decline in profitability.The geographic concentration of the petroleum business' refineries and related assets creates an exposure to the risks of the local economy and other localadverse conditions. The location of its refineries also creates the risk of increased transportation costs should the supply/demand balance change in its regionsuch that regional supply exceeds regional demand for refined products.As the refineries are both located in the southern portion of Group 3 of the PADD II region, the petroleum business primarily markets its refined products in arelatively limited geographic area. As a result, it is more susceptible to regional economic conditions than the operations of more geographically diversifiedcompetitors, and any unforeseen events or circumstances that affect its operating area could also materially adversely affect its revenues and cash flows. Thesefactors include, among other things, changes in the economy, weather conditions, demographics and population, increased supply of refined products fromcompetitors and reductions in the supply of crude oil.Should the supply/demand balance shift in its region as a result of changes in the local economy, an increase in refining50capacity or other reasons, resulting in supply in the region exceeding demand, the petroleum business may have to deliver refined products to customers outside ofthe region and thus incur considerably higher transportation costs, resulting in lower refining margins, if any.If sufficient Renewable Identification Numbers (RINs) are unavailable for purchase or if the petroleum business has to pay a significantly higher price forRINs, or if the petroleum business is otherwise unable to meet the EPA's Renewable Fuels Standard mandates, the petroleum business' financial conditionand results of operations could be materially adversely affected.Pursuant to the Energy Independence and Security Act of 2007, the EPA has promulgated the Renewable Fuel Standards ("RFS"), which requires refiners toeither blend "renewable fuels," such as ethanol and biodiesel, into their transportation fuels or purchase renewable fuel credits, known as RINs, in lieu of blending.Under the RFS, the volume of renewable fuels refineries like Coffeyville and Wynnewood are obligated to blend into their finished petroleum products is adjustedannually. The petroleum business is not able to blend the substantial majority of its transportation fuels and has to purchase RINs on the open market as well aswaiver credits for cellulosic biofuels from the EPA, in order to comply with the RFS. The price of RINs has been extremely volatile as the EPA's proposedrenewable fuel volume mandates approached the "blend wall." The blend wall refers to the point at which the amount of ethanol blended into the transportationfuel supply exceeds the demand for transportation fuel containing such levels of ethanol. The blend wall is generally considered to be reached when more than 10%ethanol by volume ("E10 gasoline") is blended into transportation fuel.On December 14, 2015, the EPA published in the Federal Register a final rule establishing the renewable fuel volume mandates for 2014, 2015 and 2016, andthe biomass-based diesel mandate for 2017. The volumes included in the EPA's final rule increase each year, but are lower, with the exception of the volumes forbiomass-based diesel, than the volumes required by the Clean Air Act. The EPA used its waiver authority to lower the volumes, but its decision to do so has beenchallenged in the U.S. Court of Appeals for the District of Columbia Circuit. In addition, in the final rule establishing the renewable volume obligations for 2014-2016 and bio-mass based diesel for 2017, the EPA articulated a policy to incentivize additional investments in renewable fuel blending and distributioninfrastructure by increasing the price of RINs.The petroleum business cannot predict the future prices of RINs or waiver credits. The price of RINs has been extremely volatile and has increased over thelast year. Additionally, the cost of RINs is dependent upon a variety of factors, which include the availability of RINs for purchase, the price at which RINs can bepurchased, transportation fuel production levels, the mix of the petroleum business' petroleum products, as well as the fuel blending performed at the refineries anddownstream terminals, all of which can vary significantly from period to period. However, the costs to obtain the necessary number of RINs and waiver creditscould be material, if the price for RINs continues to increase. Additionally, because the petroleum business does not produce renewable fuels, increasing thevolume of renewable fuels that must be blended into its products displaces an increasing volume of the refineries' product pool, potentially resulting in lowerearnings and materially adversely affecting the petroleum business' cash flows. If the demand for the petroleum business' transportation fuel decreases as a result ofthe use of increasing volumes of renewable fuels, increased fuel economy as a result of new EPA fuel economy standards, or other factors, the impact on itsbusiness could be material. If sufficient RINs are unavailable for purchase, if the petroleum business has to pay a significantly higher price for RINs or if thepetroleum business is otherwise unable to meet the EPA's RFS mandates, its business, financial condition and results of operations could be materially adverselyaffected.CVR's petroleum business faces significant competition, both within and outside of its industry. Competitors who produce their own supply of crude oil orother feedstocks, have extensive retail outlets, make alternative fuels or have greater financial resources than it does may have a competitive advantage.The refining industry is highly competitive with respect to both crude oil and other feedstock supply and refined product markets. The petroleum businessmay be unable to compete effectively with competitors within and outside of the industry, which could result in reduced profitability. The petroleum businesscompetes with numerous other companies for available supplies of crude oil and other feedstocks and for outlets for its refined products. The petroleum business isnot engaged in the petroleum exploration and production business and therefore it does not produce any of its crude oil feedstocks. It does not have a retail businessand therefore is dependent upon others for outlets for its refined products. It does not have long-term arrangements (those exceeding more than a twelve-monthperiod) for much of its output. Many of its competitors obtain significant portions of their crude oil and other feedstocks from company-owned production andhave extensive retail outlets. Competitors that have their own production or extensive retail outlets with brand-name recognition are at times able to offset lossesfrom refining operations with profits from producing or retailing operations, and may be better positioned to withstand periods of depressed refining margins orfeedstock shortages.A number of the petroleum business' competitors also have materially greater financial and other resources than it does. These competitors may have a greaterability to bear the economic risks inherent in all aspects of the refining industry. An expansion or upgrade of its competitors' facilities, price volatility, internationalpolitical and economic developments and other factors are likely to continue to play an important role in refining industry economics and may add additionalcompetitive51pressure.In addition, the petroleum business competes with other industries that provide alternative means to satisfy the energy and fuel requirements of its industrial,commercial and individual customers. There are presently significant governmental incentives and consumer pressures to increase the use of alternative fuels in theUnited States. The more successful these alternatives become as a result of governmental incentives or regulations, technological advances, consumer demand,improved pricing or otherwise, the greater the negative impact on pricing and demand for our Energy segment's petroleum business' products and profitability.Changes in the petroleum business' credit profile may affect its relationship with its suppliers, which could have a material adverse effect on its liquidity and itsability to operate the refineries at full capacity.Changes in the petroleum business' credit profile may affect the way crude oil suppliers view its ability to make payments and may induce them to shorten thepayment terms for purchases or require it to post security prior to payment. Given the large dollar amounts and volume of the petroleum business' crude oil andother feedstock purchases, a burdensome change in payment terms may have a material adverse effect on the petroleum business' liquidity and its ability to makepayments to its suppliers. This, in turn, could cause it to be unable to operate the refineries at full capacity. A failure to operate the refineries at full capacity couldadversely affect the petroleum business' profitability and cash flows.CVR's commodity derivative contracts may limit our Energy segment's potential gains, exacerbate potential losses and involve other risks.The petroleum business enters into commodity derivatives contracts to mitigate crack spread risk with respect to a portion of its expected refined productsproduction. However, its hedging arrangements may fail to fully achieve these objectives for a variety of reasons, including its failure to have adequate hedgingcontracts, if any, in effect at any particular time and the failure of its hedging arrangements to produce the anticipated results. The petroleum business may not beable to procure adequate hedging arrangements due to a variety of factors. Moreover, such transactions may limit its ability to benefit from favorable changes inmargins. In addition, the petroleum business' hedging activities may expose it to the risk of financial loss in certain circumstances, including instances in which: •the volumes of its actual use of crude oil or production of the applicable refined products is less than the volumes subject to the hedging arrangement;•accidents, interruptions in transportation, inclement weather or other events cause unscheduled shutdowns or otherwise adversely affect its refinery orsuppliers or customers;•the counterparties to its futures contracts fail to perform under the contracts; or•a sudden, unexpected event materially impacts the commodity or crack spread subject to the hedging arrangement.As a result, the effectiveness of CVR's risk mitigation strategy could have a material adverse impact on our Energy segment's financial results and cash flows.The adoption of derivatives legislation by the U.S. Congress could have an adverse effect on CVR's ability to hedge risks associated with our Energy segment'spetroleum business.The U.S. Congress has adopted the Dodd-Frank Act, comprehensive financial reform legislation that establishes federal oversight and regulation of the over-the-counter derivatives market and entities, such as the petroleum business, that participate in that market, and requires the Commodities Futures TradingCommission ("CFTC") to institute broad new position limits for futures and options traded on regulated exchanges. The Dodd-Frank Act requires the CFTC, theSEC and other regulators to promulgate rules and regulations implementing the new legislation. The Dodd-Frank Act and implementing rules and regulations alsorequire certain swap participants to comply with, among other things, certain margin requirements and clearing and trade-execution requirements in connectionwith certain derivative activities. The rulemaking process is still ongoing, and the petroleum business cannot predict the ultimate outcome of the rulemakings. Newregulations in this area may result in increased costs and cash collateral requirements for derivative instruments the petroleum business may use to hedge andotherwise manage its financial risks related to volatility in oil and gas commodity prices.If the petroleum business reduces its use of derivatives as a result of the Dodd-Frank Act and any new rules and regulations, its results of operations maybecome more volatile and its cash flows may be less predictable, which could adversely affect its ability to satisfy its debt obligations or plan for and fund capitalexpenditures. Increased volatility may make the petroleum business less attractive to certain types of investors. Finally, the Dodd-Frank Act was intended, in part,to reduce the volatility of oil and natural gas prices. If the Dodd-Frank Act and any new regulations result in lower commodity prices, the petroleum business'revenues could be adversely affected. Any of these consequences could adversely affect our Energy segment's financial condition and results of operations andtherefore could have an adverse effect on its ability to satisfy its debt obligations.52Our Energy segment's petroleum business' commodity derivative activities could result in period-to-period volatility.The petroleum business does not apply hedge accounting to its commodity derivative contracts and, as a result, unrealized gains and losses are charged to itsearnings based on the increase or decrease in the market value of the unsettled position. Such gains and losses are reflected in its income statement in periods thatdiffer from when the underlying hedged items (i.e., gross margins) are reflected in its income statement. Such derivative gains or losses in earnings may producesignificant period-to-period earnings volatility that is not necessarily reflective of our Energy segment's operational performance.CVR must make substantial capital expenditures on its refineries and other facilities to maintain their reliability and efficiency. If CVR is unable to completecapital projects at their expected costs and/or in a timely manner, or if the market conditions assumed in its project economics deteriorate, our Energysegment's financial condition, results of operations or cash flows could be adversely affected.Delays or cost increases related to the engineering, procurement and construction of new facilities, or improvements and repairs to CVR's existing facilitiesand equipment, could have a material adverse effect on our Energy segment's business, financial condition, results of operations or cash flows. Such delays or costincreases may arise as a result of unpredictable factors in the marketplace, many of which are beyond CVR's control, including:•denial or delay in obtaining regulatory approvals and/or permits;•unplanned increases in the cost of equipment, materials or labor;•disruptions in transportation of equipment and materials;•severe adverse weather conditions, natural disasters or other events (such as equipment malfunctions, explosions, fires or spills) affecting the petroleumbusiness' facilities, or those of its vendors and suppliers;•shortages of sufficiently skilled labor, or labor disagreements resulting in unplanned work stoppages;•market-related increases in a project's debt or equity financing costs; and/or•nonperformance or force majeure by, or disputes with, the petroleum business' vendors, suppliers, contractors or sub-contractors.The Coffeyville and Wynnewood refineries have been in operation for many years. Equipment, even if properly maintained, may require significant capitalexpenditures and expenses to keep it operating at optimum efficiency. If the petroleum business was unable to make up for the delays or to recover the relatedcosts, or if market conditions change, it could materially and adversely affect our Energy segment's financial position, results of operations or cash flows.CVR's plans to expand its gathering and logistics assets, which assist it in reducing its costs and increasing its processing margins, may expose our Energysegment to significant additional risks, compliance costs and liabilities.CVR plans to continue to make investments to enhance the operating flexibility of its refineries and to improve its crude oil sourcing advantage throughadditional investments in its gathering and logistics assets. If CVR is able to successfully increase the effectiveness of its supporting gathering and logistics assets,including its crude oil gathering operations, it believes it will be able to enhance its crude oil sourcing flexibility and reduce related crude oil purchasing anddelivery costs. However, the acquisition of infrastructure assets to expand CVR's crude oil gathering may expose our Energy segment to risks in the future that aredifferent than or incremental to the risks our Energy segment faces with respect to its refineries and existing gathering and logistics assets. The storage andtransportation of liquid hydrocarbons, including crude oil and refined products, are subject to stringent federal, state, and local laws and regulations governing thedischarge of materials into the environment, operational safety and related matters. Compliance with these laws and regulations could adversely affect our Energysegment's operating results, financial condition and cash flows. Moreover, failure to comply with these laws and regulations may result in the assessment ofadministrative, civil, and criminal penalties, the imposition of investigatory and remedial liabilities, the issuance of injunctions that may restrict or prohibit CVR'soperations, or claims of damages to property or persons resulting from its operations.Any businesses or assets that CVR may acquire in connection with an expansion of its crude oil gathering could expose it to the risk of releasing hazardousmaterials into the environment. These releases would expose our Energy segment to potentially substantial expenses, including cleanup and remediation costs,fines and penalties, and third party claims for personal injury or property damage related to past or future releases. Accordingly, if CVR does acquire any suchbusinesses or assets, our Energy segment could also incur additional expenses not covered by insurance which could be material.More stringent trucking regulations may increase CVR's costs and negatively impact our Energy segment's results of operations.In connection with the trucking operations conducted by its crude gathering division, the petroleum business operates as a motor carrier and therefore issubject to regulation by the U.S. Department of Transportation and various state agencies. These53regulatory authorities exercise broad powers, governing activities such as the authorization to engage in motor carrier operations and regulatory safety, andhazardous materials labeling, placarding and marking. There are additional regulations specifically relating to the trucking industry, including testing andspecification of equipment and product handling requirements. The trucking industry is subject to possible regulatory and legislative changes that may affect theeconomics of the industry by requiring changes in operating practices or by changing the demand for common or contract carrier services or the cost of providingtruckload services. Some of these possible changes include increasingly stringent environmental regulations, changes in the hours of service regulations that governthe amount of time a driver may drive in any specific period, onboard black box recorder devices or limits on vehicle weight and size.To a large degree, intrastate motor carrier operations are subject to state safety regulations that mirror federal regulations. Such matters as weight anddimension of equipment are also subject to federal and state regulations. Furthermore, from time to time, various legislative proposals are introduced, such asproposals to increase federal, state or local taxes, including taxes on motor fuels, which may increase the petroleum business' costs or adversely impact therecruitment of drivers. The petroleum business cannot predict whether, or in what form, any increase in such taxes will be enacted or the extent to which they willapply to our Energy segment's petroleum business and its operations.Risks Relating to CVR's Nitrogen Fertilizer BusinessThe nitrogen fertilizer business is, and nitrogen fertilizer prices are, cyclical and highly volatile, and the nitrogen fertilizer business has experiencedsubstantial downturns in the past. Cycles in demand and pricing could potentially expose the nitrogen fertilizer business to significant fluctuations in itsoperating and financial results and have a material adverse effect on our Energy segment's results of operations, financial condition and cash flows.The nitrogen fertilizer business is exposed to fluctuations in nitrogen fertilizer demand in the agricultural industry. These fluctuations historically have hadand could in the future have significant effects on prices across all nitrogen fertilizer products and, in turn, our Energy segment's results of operations, financialcondition and cash flows.Nitrogen fertilizer products are commodities, the price of which can be highly volatile. The prices of nitrogen fertilizer products depend on a number offactors, including general economic conditions, cyclical trends in end-user markets, supply and demand imbalances, governmental policies and weather conditions,which have a greater relevance because of the seasonal nature of fertilizer application. If seasonal demand exceeds the projections on which the nitrogen fertilizerbusiness bases production, customers may acquire nitrogen fertilizer products from competitors, and the profitability of the nitrogen fertilizer business will benegatively impacted. If seasonal demand is less than expected, the nitrogen fertilizer business will be left with excess inventory that will have to be stored orliquidated.Demand for nitrogen fertilizer products is dependent on demand for crop nutrients by the global agricultural industry. The international market for nitrogenfertilizers is influenced by such factors as the relative value of the U.S. dollar and its impact upon the cost of importing nitrogen fertilizers, foreign agriculturalpolicies, the existence of, or changes in, import or foreign currency exchange barriers in certain foreign markets, changes in the hard currency demands of certaincountries and other regulatory policies of foreign governments, as well as the laws and policies of the United States affecting foreign trade and investment.Nitrogen-based fertilizers remain solidly in high demand, driven by a growing world population, changes in dietary habits and an expanded use of corn for theproduction of ethanol. Supply is affected by available capacity and operating rates, raw material costs, government policies and global trade. A decrease in nitrogenfertilizer prices would have a material adverse effect on our Energy segment's results of operations, financial condition and cash flows.The costs associated with operating the nitrogen fertilizer plant are largely fixed. If nitrogen fertilizer prices fall below a certain level, the nitrogen fertilizerbusiness may not generate sufficient revenue to operate profitably or cover its costs.Unlike CVR's competitors, whose primary costs are related to the purchase of natural gas and whose costs are therefore largely variable, the nitrogen fertilizerbusiness has largely fixed costs. As a result of the fixed cost nature of our Energy segment's operations, downtime, interruptions or low productivity due to reduceddemand, adverse weather conditions, equipment failure, a decrease in nitrogen fertilizer prices or other causes can result in significant operating losses which couldhave a material adverse effect on our Energy segment's results of operations, financial condition and cash flows.Continued low natural gas prices could impact the nitrogen fertilizer business' relative competitive position when compared to other nitrogen fertilizerproducers.Most nitrogen fertilizer manufacturers rely on natural gas as their primary feedstock, and the cost of natural gas is a large component of the total productioncost for natural gas-based nitrogen fertilizer manufacturers. Low natural gas prices benefit the nitrogen fertilizer business' competitors and disproportionatelyimpact our operations by making the nitrogen fertilizer business less competitive with natural gas-based nitrogen fertilizer manufacturers. Continued low naturalgas prices could impair the nitrogen fertilizer business' ability to compete with other nitrogen fertilizer producers who utilize natural gas as their54primary feedstock if nitrogen fertilizer pricing drops as a result of low natural gas prices, and therefore have a material adverse impact on the cash flows of thenitrogen fertilizer business.Any decline in U.S. agricultural production or limitations on the use of nitrogen fertilizer for agricultural purposes could have a material adverse effect on thesales of nitrogen fertilizer, and on our Energy segment's results of operations, financial condition and cash flows.Conditions in the U.S. agricultural industry significantly impact the operating results of the nitrogen fertilizer business. The U.S. agricultural industry can beaffected by a number of factors, including weather patterns and field conditions, current and projected grain inventories and prices, domestic and internationalpopulation changes, demand for U.S. agricultural products and U.S. and foreign policies regarding trade in agricultural products.The Agricultural Act of 2014 (the "2014 Farm Bill") ends direct subsidies to agricultural producers for owning farmland, and funds a new crop insuranceprogram in its place. As part of the conservation title of the 2014 Farm Bill, agricultural producers must meet a minimum standard of environmental protection inorder to receive federal crop insurance on sensitive lands. The 2014 Farm Bill also discourages producers from converting native grasslands to farmland bylimiting crop insurance subsidies for the first few years for newly converted lands. These changes may have a negative impact on fertilizer sales and on our Energysegment's results of operations, financial condition and cash flows.State and federal governmental policies, including farm and biofuel subsidies and commodity support programs, as well as the prices of fertilizer products,may also directly or indirectly influence the number of acres planted, the mix of crops planted and the use of fertilizers for particular agricultural applications.Developments in crop technology, such as nitrogen fixation (the conversion of atmospheric nitrogen into compounds that plants can assimilate), could also reducethe use of chemical fertilizers and adversely affect the demand for nitrogen fertilizer. In addition, from time to time various state legislatures have consideredlimitations on the use and application of chemical fertilizers due to concerns about the impact of these products on the environment. Unfavorable state and federalgovernmental policies could negatively affect nitrogen fertilizer prices and therefore have a material adverse effect on our Energy segment's results of operations,financial condition and cash flows.A major factor underlying the current high level of demand for nitrogen-based fertilizer products is the production of ethanol. A decrease in ethanolproduction, an increase in ethanol imports or a shift away from corn as a principal raw material used to produce ethanol could have a material adverse effecton our Energy segment's results of operations, financial condition and cash flows.A major factor underlying the solid level of demand for nitrogen-based fertilizer products produced by the nitrogen fertilizer business is the production ofethanol in the United States and the use of corn in ethanol production. Ethanol production in the United States is highly dependent upon a myriad of federal statutesand regulations, and is made significantly more competitive by various federal and state incentives and mandated usage of renewable fuels pursuant to the RFS. Todate, the RFS has been satisfied primarily with fuel ethanol blended into gasoline. However, a number of factors, including the continuing "food versus fuel"debate and studies showing that expanded ethanol usage may increase the level of greenhouse gases in the environment as well as be unsuitable for small engineuse, have resulted in calls to reduce subsidies for ethanol, allow increased ethanol imports and to repeal or waive (in whole or in part) the current RFS, any ofwhich could have an adverse effect on corn-based ethanol production, planted corn acreage and fertilizer demand. Therefore, ethanol incentive programs may notbe renewed, or if renewed, they may be renewed on terms significantly less favorable to ethanol producers than current incentive programs.Recently, the volume of ethanol required by the RFS standards to be blended into transportation fuel has approached the "blend wall." The blend wall is themaximum amount of ethanol that can be blended into the transportation fuel supply because of limitations like the ability of cars to use higher ethanol blendedfuels and limitations on the blending and distribution infrastructure. The blend wall is generally considered to be reached when more than 10% ethanol by volume("E10 gasoline") is blended into transportation fuel. On December 14, 2015, the EPA published in the Federal Register a final rule establishing the renewable fuelvolume mandates for 2014, 2015 and 2016, and the biomass-based diesel mandate for 2017. The volumes included in EPA's final rule increase each year, but arelower, with the exception of the volumes for biomass-based diesel, than the volumes required by the Clean Air Act. The EPA used its waiver authority to lower thevolumes, but its decision to do so has been challenged in the U.S. Court of Appeals for the District of Columbia Circuit by corn growers and renewable fuelsproducers. The renewable fuel volume mandate for 2016 is expected to breach the blend wall, forcing higher ethanol fuel blends, including fuels with 15% or 85%ethanol, or non-ethanol renewable fuel that is not constrained by the blend wall. In addition, in the final rule establishing the renewable volume obligations for2014-2016 and bio-mass based diesel for 2017, the EPA articulated a policy to incentivize additional investments in renewable fuel blending and distributioninfrastructure by increasing the price of RINs. Any substantial decrease in future volume obligations under RFS could have a material adverse effect on ethanolproduction in the United States, which could have a material adverse effect on the nitrogen fertilizer business' results of operations, financial condition and abilityto make cash distributions.55Further, while most ethanol is currently produced from corn and other raw grains, such as milo or sorghum, the current RFS mandate requires a portion of theoverall RFS mandate to come from advanced biofuels, including cellulose-based biomass, such as agricultural waste, forest residue, municipal solid waste andenergy crops (plants grown for use to make biofuels or directly exploited for their energy content) and biomass-based diesel. In addition, there is a continuing trendto encourage the use of products other than corn and raw grains for ethanol production. If this trend is successful, the demand for corn may decrease significantly,which could reduce demand for nitrogen fertilizer products and have an adverse effect on the nitrogen fertilizer business' results of operations, financial conditionand cash flows. This potential impact on the demand for nitrogen fertilizer products, however, could be slightly offset by the potential market for nitrogen fertilizerproduct usage in connection with the production of cellulosic biofuels.Nitrogen fertilizer products are global commodities, and the nitrogen fertilizer business faces intense competition from other nitrogen fertilizer producers.The nitrogen fertilizer business is subject to intense price competition from both U.S. and foreign sources, including competitors operating in the Middle East,the Asia-Pacific region, the Caribbean, Russia and the Ukraine. Fertilizers are global commodities, with little or no product differentiation, and customers maketheir purchasing decisions principally on the basis of delivered price and availability of the product. Increased global supply may put downward pressure onfertilizer prices. Furthermore, in recent years the price of nitrogen fertilizer in the United States has been substantially driven by pricing in the global fertilizermarket. The nitrogen fertilizer business competes with a number of U.S. producers and producers in other countries, including state-owned and government-subsidized entities. Some competitors have greater total resources and are less dependent on earnings from fertilizer sales, which makes them less vulnerable toindustry downturns and better positioned to pursue new expansion and development opportunities. Increased domestic supply may put downward pressure onfertilizer prices. Additionally, the nitrogen fertilizer business' competitors utilizing different corporate structures may be better able to withstand lower cash flowsthan the nitrogen fertilizer business can as a limited partnership. The nitrogen fertilizer business' competitive position could suffer to the extent it is not able toexpand its resources either through investments in new or existing operations or through acquisitions, joint ventures or partnerships. An inability to competesuccessfully could result in a loss of customers, which could adversely affect the sales, profitability and the cash flows of the nitrogen fertilizer business andtherefore have a material adverse effect on our Energy segment's results of operations, financial condition and cash flows.The nitrogen fertilizer business is seasonal, which may result in it carrying significant amounts of inventory and seasonal variations in working capital. CVR'sinability to predict future seasonal nitrogen fertilizer demand accurately may result in excess inventory or product shortages.The nitrogen fertilizer business is seasonal. Farmers tend to apply nitrogen fertilizer during two short application periods, one in the spring and the other inthe fall. The strongest demand for nitrogen fertilizer products typically occurs during the spring planting season. In contrast, the nitrogen fertilizer business andother nitrogen fertilizer producers generally produce products throughout the year. As a result, the nitrogen fertilizer business and its customers generally buildinventories during the low demand periods of the year in order to ensure timely product availability during the peak sales seasons. The seasonality of nitrogenfertilizer demand results in sales volumes and net sales being highest during the North American spring season and working capital requirements typically beinghighest just prior to the start of the spring season.If seasonal demand exceeds projections, the nitrogen fertilizer business will not have enough product and its customers may acquire products from itscompetitors, which would negatively impact profitability. If seasonal demand is less than expected, the nitrogen fertilizer business will be left with excessinventory and higher working capital and liquidity requirements.The degree of seasonality of the nitrogen fertilizer business can change significantly from year to year due to conditions in the agricultural industry and otherfactors. As a consequence of such seasonality, it is expected that the distributions CVR receives from the nitrogen fertilizer business will be volatile and will varyquarterly and annually.Adverse weather conditions during peak fertilizer application periods may have a material adverse effect on our Energy segment's results of operations,financial condition and cash flows, because the agricultural customers of the nitrogen fertilizer business are geographically concentrated.The nitrogen fertilizer business' sales to agricultural customers are concentrated in the Great Plains and Midwest states and are seasonal in nature. Thenitrogen fertilizer business' quarterly results may vary significantly from one year to the next due largely to weather-related shifts in planting schedules andpurchase patterns. For example, the nitrogen fertilizer business generates greater net sales and operating income in the first half of the year, which is referred toherein as the planting season, compared to the second half of the year. Accordingly, an adverse weather pattern affecting agriculture in these regions or during theplanting season could have a negative effect on fertilizer demand, which could, in turn, result in a material decline in the nitrogen fertilizer business' net sales andmargins and otherwise have a material adverse effect on our Energy segment's results of operations, financial condition and cash flows. The nitrogen fertilizerbusiness' quarterly results may vary significantly from one year to the next due largely to weather-related shifts in planting schedules and purchase patterns. As a56result, it is expected that the nitrogen fertilizer business' distributions to holders of its common units (including CVR) will be volatile and will vary quarterly andannually.The nitrogen fertilizer business' operations are dependent on third party suppliers, including Linde, which owns an air separation plant that provides oxygen,nitrogen and compressed dry air to its facility, and the City of Coffeyville, which supplies the nitrogen fertilizer business with electricity. A deterioration in thefinancial condition of a third party supplier, a mechanical problem with the air separation plant, or the inability of a third-party supplier to perform inaccordance with its contractual obligations could have a material adverse effect on our Energy segment's results of operations, financial condition and cashflows.The operations of the nitrogen fertilizer business depend in large part on the performance of third party suppliers, including Linde for the supply of oxygen,nitrogen and compressed dry air, and the City of Coffeyville for the supply of electricity. With respect to Linde, operations could be adversely affected if therewere a deterioration in Linde's financial condition such that the operation of the air separation plant located adjacent to the nitrogen fertilizer plant was disrupted.Additionally, this air separation plant in the past has experienced numerous short-term interruptions, causing interruptions in gasifier operations. With respect toelectricity, in 2010, the nitrogen fertilizer business entered into an amended and restated electric services agreement with the City of Coffeyville, Kansas whichgives the nitrogen fertilizer business an option to extend the term of such agreement through June 30, 2024. Should Linde, the City of Coffeyville or any of itsother third party suppliers fail to perform in accordance with existing contractual arrangements, operations could be forced to halt. Alternative sources of supplycould be difficult to obtain. Any shutdown of operations at the nitrogen fertilizer plant, even for a limited period, could have a material adverse effect on ourEnergy segment's results of operations, financial condition and cash flows.Our Energy segment's nitrogen fertilizer business' results of operations, financial condition and cash flows may be adversely affected by the supply and pricelevels of pet coke.The profitability of the nitrogen fertilizer business is directly affected by the price and availability of pet coke obtained from the Coffeyville refinery pursuantto a long-term agreement and pet coke purchased from third parties, both of which vary based on market prices. Pet coke is a key raw material used by the nitrogenfertilizer business in the manufacture of nitrogen fertilizer products. If pet coke costs increase, the nitrogen fertilizer business may not be able to increase its pricesto recover these increased costs, because market prices for nitrogen fertilizer products are not correlated with pet coke prices.The nitrogen fertilizer business may not be able to maintain an adequate supply of pet coke. In addition, it could experience production delays or costincreases if alternative sources of supply prove to be more expensive or difficult to obtain. The nitrogen fertilizer business currently purchases 100% of the petcoke the Coffeyville refinery produces. Accordingly, if the nitrogen fertilizer business increases production, it will be more dependent on pet coke purchases fromthird-party suppliers at open market prices. The nitrogen fertilizer business is party to a pet coke supply agreement with HollyFrontier Corporation. The term ofthis agreement ends in December 2016. There is no assurance that the nitrogen fertilizer business would be able to purchase pet coke on comparable terms fromthird parties or at all.The nitrogen fertilizer business relies on third-party providers of transportation services and equipment, which subjects it to risks and uncertainties beyond itscontrol that may have a material adverse effect on our Energy segment's results of operations, financial condition and cash flows.The nitrogen fertilizer business relies on railroad and trucking companies to ship finished products to its customers. The nitrogen fertilizer business alsoleases railcars from railcar owners in order to ship its finished products. These transportation operations, equipment and services are subject to various hazards,including extreme weather conditions, work stoppages, delays, spills, derailments and other accidents and other operating hazards.These transportation operations, equipment and services are also subject to environmental, safety and other regulatory oversight. Due to concerns related toterrorism or accidents, local, state and federal governments could implement new regulations affecting the transportation of the nitrogen fertilizer business' finishedproducts. In addition, new regulations could be implemented affecting the equipment used to ship its finished products.Any delay in the nitrogen fertilizer business' ability to ship its finished products as a result of these transportation companies' failure to operate properly, theimplementation of new and more stringent regulatory requirements affecting transportation operations or equipment, or significant increases in the cost of theseservices or equipment could have a material adverse effect on our Energy segment's fertilizer business' results of operations, financial condition and cash flows.57Ammonia can be very volatile and extremely hazardous. Any liability for accidents involving ammonia or other products CVR produces or transports thatcause severe damage to property or injury to the environment and human health could have a material adverse effect on our Energy segment's results ofoperations, financial condition and cash flows. In addition, the costs of transporting ammonia could increase significantly in the future.The nitrogen fertilizer business manufactures, processes, stores, handles, distributes and transports ammonia, which can be very volatile and extremelyhazardous. Major accidents or releases involving ammonia could cause severe damage or injury to property, the environment and human health, as well as apossible disruption of supplies and markets. Such an event could result in civil lawsuits, fines, penalties and regulatory enforcement proceedings, all of whichcould lead to significant liabilities. Any damage to persons, equipment or property or other disruption of the ability of the nitrogen fertilizer business to produce ordistribute its products could result in a significant decrease in operating revenues and significant additional cost to replace or repair and insure its assets, whichcould have a material adverse effect on the nitrogen fertilizer business' results of operations, financial condition and cash flows. The nitrogen fertilizer facilityperiodically experiences minor releases of ammonia related to leaks from its equipment. Similar events may occur in the future and could have a material adverseeffect on the nitrogen fertilizer business' results of operations, financial condition and cash flows.In addition, the nitrogen fertilizer business may incur significant losses or costs relating to the operation of railcars used for the purpose of carrying variousproducts, including ammonia. Due to the dangerous and potentially toxic nature of the cargo, in particular ammonia, on board railcars, a railcar accident may resultin fires, explosions and pollution. These circumstances may result in sudden, severe damage or injury to property, the environment and human health. In the eventof pollution, the nitrogen fertilizer business may be held responsible even if it is not at fault and it complied with the laws and regulations in effect at the time ofthe accident. Litigation arising from accidents involving ammonia and other products the nitrogen fertilizer business produces or transports may result in thenitrogen fertilizer business or us being named as a defendant in lawsuits asserting claims for large amounts of damages, which could have a material adverse effecton the nitrogen fertilizer business' results of operations, financial condition and cash flows.Given the risks inherent in transporting ammonia, the costs of transporting ammonia could increase significantly in the future. Ammonia is most typicallytransported by pipeline and railcar. A number of initiatives are underway in the railroad and chemical industries that may result in changes to railcar design in orderto minimize railway accidents involving hazardous materials. In addition, in the future, laws may more severely restrict or eliminate the ability of the nitrogenfertilizer business to transport ammonia via railcar. If any railcar design changes are implemented, or if accidents involving hazardous freight increase theinsurance and other costs of railcars, freight costs of the nitrogen fertilizer business could significantly increase.Environmental laws and regulations on fertilizer end-use and application and numeric nutrient water quality criteria could have a material adverse impact onfertilizer demand in the future.Future environmental laws and regulations on the end-use and application of fertilizers could cause changes in demand for the nitrogen fertilizer business'products. In addition, future environmental laws and regulations, or new interpretations of existing laws or regulations, could limit the ability of the nitrogenfertilizer business to market and sell its products to end users. From time to time, various state legislatures have proposed bans or other limitations on fertilizerproducts. The EPA is encouraging states to adopt state-wide numeric water quality criteria for total nitrogen and total phosphorus, which are present in the nitrogenfertilizer business' fertilizer products. A number of states have adopted or proposed numeric nutrient water quality criteria for nitrogen and phosphorus. Theadoption of stringent state criteria for nitrogen and phosphorus could reduce the demand for nitrogen fertilizer products in those states. If such laws, rules,regulations or interpretations to significantly curb the end-use or application of fertilizers were promulgated in the nitrogen fertilizer business' marketing areas, itcould result in decreased demand for its products and have a material adverse effect on our Energy segment's results of operations, financial condition and cashflows.If licensed technology were no longer available, the nitrogen fertilizer business may be adversely affected.The nitrogen fertilizer business has licensed, and may in the future license, a combination of patent, trade secret and other intellectual property rights of thirdparties for use in its business. In particular, the gasification process it uses to convert pet coke to high purity hydrogen for subsequent conversion to ammonia islicensed from General Electric. The license, which is fully paid, grants the nitrogen fertilizer business perpetual rights to use the pet coke gasification process onspecified terms and conditions and is integral to the operations of the nitrogen fertilizer facility. If this license or any other license agreements on which thenitrogen fertilizer business' operations rely, were to be terminated, licenses to alternative technology may not be available, or may only be available on terms thatare not commercially reasonable or acceptable. In addition, any substitution of new technology for currently-licensed technology may require substantial changesto manufacturing processes or equipment and may have a material adverse effect on our Energy segment's results of operations, financial condition and cash flows.58The nitrogen fertilizer business may face third party claims of intellectual property infringement, which if successful could result in significant costs.Although there are currently no pending claims relating to the infringement of any third party intellectual property rights, in the future the nitrogen fertilizerbusiness may face claims of infringement that could interfere with its ability to use technology that is material to its business operations. Any litigation of this type,whether successful or unsuccessful, could result in substantial costs and diversions of resources, which could have a material adverse effect on our Energysegment's results of operations, financial condition and cash flows. In the event a claim of infringement against the nitrogen fertilizer business is successful, it maybe required to pay royalties or license fees for past or continued use of the infringing technology, or it may be prohibited from using the infringing technologyaltogether. If it is prohibited from using any technology as a result of such a claim, it may not be able to obtain licenses to alternative technology adequate tosubstitute for the technology it can no longer use, or licenses for such alternative technology may only be available on terms that are not commercially reasonableor acceptable. In addition, any substitution of new technology for currently licensed technology may require the nitrogen fertilizer business to make substantialchanges to its manufacturing processes or equipment or to its products, and could have a material adverse effect on our Energy segment's results of operations,financial condition and cash flows.There can be no assurance that the transportation costs of the nitrogen fertilizer business' competitors will not decline.The nitrogen fertilizer plant is located within the U.S. farm belt, where the majority of the end users of its nitrogen fertilizer products grow their crops. Manyof its competitors produce fertilizer outside of this region and incur greater costs in transporting their products over longer distances via rail, ships and pipelines.There can be no assurance that competitors' transportation costs will not decline or that additional pipelines will not be built, lowering the price at whichcompetitors can sell their products, which would have a material adverse effect on our Energy segment's results of operations, financial condition and cash flows.MetalsThe principal markets served by our Metals segment's business are highly competitive. Our Metals segment may have difficulty competing with companies thathave a lower cost structure than it has.Our Metals segment's business operates in a highly competitive environment. Our Metals segment primarily provides products and services to industrialcompanies. Many other companies offer the same or similar products and services and compete with our metals business on a number of bases including, but notlimited to: (i) price; (ii) quality of service; (iii) proximity to the consumer; (iv) proximity to sources of supply; (v) local or regional presence; (vi) technology; (vii)safety performance; and (viii) financial strength. Some of these competitors have greater financial resources or are larger and have more diverse businesses. Inaddition, our Metals segment also face increased competition from steel mills that are vertically integrated into the scrap metal business. Some of our Metalssegment's foreign competitors may be able to pursue business opportunities without regard for the laws and regulations with which we must comply, such asenvironmental regulations. These companies may have a lower cost structure and more operating flexibility and consequently they may be able to offer betterprices and more services than we can. There can be no assurance that our Metals segment will be able to compete successfully with these companies. In addition tolarger companies, we compete with many smaller competitors operating locally in this highly fragmented market. Some of these smaller companies may havelower operating costs and may be able to compete more effectively on price.Prices of commodities are volatile and markets are competitive.Our Metals segment is exposed to commodity price risk during the period that it has title to products that are held in inventory for processing and/or resale.Prices of commodities, including scrap metals, can be volatile due to numerous factors beyond PSC Metals' control, including:•general economic conditions;•labor costs;•domestic and import competition;•financial condition of its major customers;•access and costs associated with transportation systems;•the availability and relative pricing of scrap metal substitutes; and•import duties, ocean freight costs, tariffs and currency exchange rates.In an increasing purchase price environment for raw materials, competitive conditions may limit PSC Metals' ability to pass on price increases to itsconsumers. In a decreasing sales price environment for processed scrap, PSC Metals may not have59the ability to fully recoup the cost of raw scrap metal it processes and sells to its customers. New entrants into its markets could result in higher purchase prices forraw materials and lower margins from our scrap metals. Prices in the scrap metal industry are established and adjusted monthly by the major steel producers. Theprice of ferrous scrap is a significant factor influencing the profitability of the scrap metals industry.Our Metals segment operates in industries that are cyclical and demand can be volatile. Adverse conditions in the steel industry could negatively affect demandfor its materials.The operating results of the scrap metals recycling industry in general, and PSC Metals' operations specifically, are highly cyclical and dependent on generaldomestic and international economic conditions. Historically, in periods of national recession or slowing economic growth, the operating results of scrap metalsrecycling companies have been materially and adversely affected. Ferrous and non-ferrous scrap has been historically vulnerable to significant declines inconsumption and product pricing during prolonged periods of economic downturn. As a result of the recent global economic crisis and uneven recoveries in thesteel, automotive, industrial equipment, construction and other industries, PSC Metals has experienced significant fluctuations in supply, demand and pricing for itsproducts, which could continue to adversely affect our Metals operations.Increases in steel imports and decreases in scrap exports could adversely affect the demand for scrap metals domestically.Our scrap metals business may be adversely affected by increases in steel imports into the United States, which will have an adverse impact on domestic steelproduction and a corresponding adverse impact on the demand for scrap metals domestically. Our scrap metals business may be adversely affected by decreases ofscrap exports out of the United States to export markets such as Turkey, China, South Korea, India and Vietnam which could negatively impact demand prices forscrap metals globally. Additionally, our scrap metals business could be negatively affected by strengthening in the U.S. dollar or increased freight costs whichcould negatively impact export sales and a stronger U.S. dollar could also attract imports of scrap or scrap substitutes, reducing demand for our scrap metals.A significant increase in the use of scrap metals alternatives by consumers of processed scrap metals could reduce demand for PSC Metals' products.During periods of high demand for scrap metals, the demand for ferrous scrap metal could outstrip its supply. The relative scarcity of ferrous scrap,particularly prime or industrial grades, and its high price during such periods have created opportunities for producers of alternatives to scrap metals, such as pigiron and direct reduced iron pellets and others. We cannot assure you that the use of alternatives to scrap metals may not proliferate in the future if the prices forscrap metals rise, if the supplies of available unprepared ferrous scrap tighten or if costs to import scrap decline precipitously.Unanticipated disruptions in our operations or slowdowns by our shipping companies could adversely affect our ability to deliver our products, which couldmaterially and adversely affect PSC Metals' revenues and its relationship with its consumers. PSC Metals' ability to process and fulfill orders and manage inventory depends on the efficient and uninterrupted operation of its facilities. Labor and otherdisruptions at PSC Metals’ facilities could adversely affect its ability to process and ship material. In addition, many of its products are transported to customers bythird-party truck, rail carriers and barge services. As a result, PSC Metals relies on the timely and uninterrupted performance of third-party shipping companies.Any interruption in its operations or interruption or delay in transportation services could cause orders to be canceled, delivered late, or receipt of goods to berefused or result in higher transportation costs. As a result, PSC Metals' relationships with its customers and its revenues and results of operations and financialcondition could be materially and adversely affected.The profitability of PSC Metals' scrap recycling operations depends, in part, on the availability of an adequate source of supply of scrap metals.PSC Metals procures scrap inventory from numerous sources. These suppliers generally are not bound by long-term contracts and have no obligation to sellscrap metals to PSC Metals. In periods of low industry prices, suppliers may elect to hold scrap to wait for higher prices or intentionally slow their scrap salesactivities. If a substantial number of scrap suppliers cease selling scrap metals to PSC Metals, its scrap metals business could be materially and adversely affected.In addition, the slowdown of industrial production and U.S. consumer consumption during the recent economic crisis has reduced industrial grades of scrap metalavailable to PSC Metals. If the supply of scrap metal is limited, PSC Metals would be unable to recycle scrap metals at necessary volumes which could adverselyaffect our Metals operations.PSC Metals' business presents significant risk of injury or death.Because of the heavy industrial activities conducted at PSC Metals' facilities, there exists a risk of serious injury or death to our employees or other visitorsnotwithstanding the safety precautions PSC Metals takes. PSC Metals' scrap metals business is subject to regulation by federal, state and local agencies responsiblefor employee health and safety, including the60Occupational Safety and Health Administration. While PSC Metals has in place policies to minimize such risks, it may nevertheless be unable to avoid materialliabilities for any death or injury that may occur in the future and these types of incidents may have a material adverse effect on our Metals operations.PSC Metals' business is subject to stringent regulations, particularly under applicable environmental laws.PSC Metals is subject to comprehensive local, state and federal statutory and regulatory environmental requirements relating to, among others:•the acceptance, storage, handling and disposal of solid, hazardous and Toxic Substances Control Act waste;•the discharge of materials into the air;•the management and treatment of wastewater and storm water;•the remediation of soil and groundwater contamination;•the restoration of natural resource damages; and•the protection of its employees' health and safety.PSC Metals believes that it is currently in material compliance with applicable statutes and regulations governing the protection of human health and theenvironment, including employee health and safety. We can give no assurance, however, that PSC Metals will continue to be in material compliance or avoidmaterial fines, penalties and expenses associated with compliance issues in the future.Such laws and regulations also require manifests to be completed and delivered in connection with any shipment of prescribed materials so that the movementand disposal of such materials can be traced and the persons responsible for any mishandling of such materials identified. Regulatory requirements may be imposedas conditions of operating permits or licenses. As part of its scrap metals business, PSC Metals must properly remove, handle, recycle or dispose of waste materialsor be subject to penalties. Transportation, transfer, storage and disposal of waste are difficult and accidents may occur. These laws and regulations are stringent andare likely to become more stringent in the future. Existing and new laws and regulations may require our scrap metals business to modify, supplement, replace orcurtail its operating methods or to modify or replace facilities or equipment at costs that may be substantial without any corresponding increase in revenues.Hazardous substances are present in some of the processing, transfer and storage facilities owned or leased by our scrap metal business and landfill facilitiesused by our scrap metals business. Remediation may be required at these sites at substantial cost. We cannot assure you that the ultimate cost and expense ofcorrective action will not substantially exceed any reserves and have a material adverse impact on our Metals segment's operations. In addition, governments havefrom time to time required companies to remediate sites where materials were properly disposed because those governments have instituted higher standards.PSC Metals is required to obtain, and must comply with, various permits and licenses to conduct our scrap metals business. Failure to obtain or violations ofany permit or license, if not remedied, could result in PSC Metals' incurring substantial fines, suspending our scrap metals business or closing facilities. Further,our scrap metals business is conducted primarily outdoors and as such, depending on the nature of the ground cover, involves the risk of releases of wastes andother regulated materials to the soil and, possibly, to groundwater. From time to time, as part of its continuous improvement programs, PSC Metals incurs costs toimprove environmental control systems.PSC Metals' business may be subject to public opposition and adverse publicity that could delay or limit its development and expansion.A high level of public concern exists over industrial by-products recovery operations, including the location and operation of transfer, processing, storage anddisposal facilities and the collection, processing or handling of industrial by-products and waste materials, particularly hazardous materials. Zoning, permit andlicensing applications and proceedings and regulatory enforcement proceedings are all matters open to public scrutiny and comment. As a result, from time to time,our scrap metals business may be subject to citizen opposition and adverse publicity that may have a negative effect on operations and delay or limit the expansionand developing of operating properties, and could have a material adverse effect on our Metals operation.PSC Metals may be unable to obtain adequate environmental insurance.PSC Metals is subject to potential liability for personal injuries and property damage caused by releases of hazardous substances and for remediation of risksposed by hazardous substances. Consistent with industry trends, PSC Metals may be unable to obtain an adequate amount of environmental impairment insurancefor its scrap metals business at a reasonable premium to cover liability to third persons for environmental damage. Accordingly, if our scrap metals business wereto incur61liability for environmental damage either not provided for under such coverage or in excess of such coverage, our Metals operations could be materially oradversely affected.Increasing energy and freight costs could increase PSC Metal's operating costs.The availability and cost of freight and energy, such as electricity, natural gas and diesel fuel, is important in the manufacture and transport of PSC Metals'products. PSC Metals' operations consume substantial amounts of energy, and its operating costs generally increase when energy costs rise. Factors that may affectPSC Metals' energy costs include significant increases in fuel, oil or natural gas prices, unavailability of electrical power or other energy sources due to droughts,hurricanes or other natural causes or due to shortages resulting from insufficient supplies to serve customers, or interruptions in energy supplies due to equipmentfailure or other causes. During periods of increasing energy and freight costs, PSC Metals may be unable to fully recover its operating cost increases through priceincreases without reducing demand for its products. PSC Metals' financial results could be adversely affected if it is unable to pass these increases on to itscustomers or if it is unable to obtain the necessary freight and energy.PSC Metals' operations are outside and affected by severe changes in the weather. Severe weather or equipment failures may lead to production curtailmentsor shutdowns.All of PSC Metals' scrap yards can be affected by severe weather and yards that are located adjacent to rivers are subject to potential flooding, all of whichcan result in production curtailments or shutdowns, which could adversely impact our Metals operations. Our scrap metals business' recycling and manufacturingprocesses depend, in part, upon shredders, which could be out of service temporarily as a result of unanticipated failures. As a result, PSC Metals may experienceinterruptions in its scrap metals business' processing and production capabilities, which could have a material adverse effect on our Metals operations.RailcarThe highly cyclical nature of the railcar industry may result in lower revenues during economic downturns or due to other factors.The North American railcar market has been, and our Railcar segment expects it to continue to be, highly cyclical resulting in volatility in demand for ourproducts and services. Sales of our railcars and other products slowed in 2010 resulting in decreased production rates. New orders and shipments of railcarssteadily increased beginning in 2011 and continuing through 2014 driven by increased demand for shipment of certain commodities, replacement of older railcarsand federal tax benefits from the delivery of railcars in 2011 through 2014. The railcar industry reached a record backlog level at December, 31, 2014, and ordershave since slowed in 2015. The cyclical nature of the railcar industry may result in lower revenues during economic or industry downturns due to decreaseddemand for both new and replacement railcars and railcar products and lower demand for railcars on lease. Decreased demand could result in lower lease volumes,increased downtime, reduced lease rates and decreased cash flow. Regulatory changes related to tank railcars in North America may impact future new railcarproduction rates and orders from our Railcar segment's customers, as well as retrofit and maintenance work to existing railcars. In response to these regulations,our Railcar segment continues to invest capital and evaluate opportunities to further expand its manufacturing flexibility and repair capacity to address theanticipated needs of the industry resulting from the regulations. Our Railcar segment cannot assure you that any increased manufacturing flexibility or repaircapacity will be sufficient to meet the demands of the industry resulting from these regulations. Nor can our Railcar segment assure you that hopper or tank railcardemand will continue at strong levels, that demand for any railcar types or railcar services will improve, or that its railcar backlog, orders and shipments will trackindustry-wide trends. Similarly, our Railcar segment cannot assure you of the impact of the regulatory changes affecting the North American railcar industry or itsbusiness.Our Railcar segment's failure to obtain new orders could materially adversely affect our business, financial condition and results of operations. Downturns inpart or all of the railcar manufacturing industry may occur in the future, resulting in decreased demand for our products and services. For example, a change inenvironmental regulations, oil prices, competitive pricing, pipeline capacity and other factors could trigger a cyclical shift and could reduce demand for railcars inthe energy transportation industry. If our Railcar segment fails to manage its overhead costs and variations in production rates, our Railcar segment’s businesscould suffer.Further, a change in our product mix due to cyclical shifts in demand could have an adverse effect on our profitability. Our Railcar segment manufactures,leases and repairs a variety of railcars. The demand for specific types of these railcars varies from time to time. These shifts in demand could affect our marginsand could have an adverse effect on our profitability.Exposure to fluctuations in commodity and energy prices may impact our Railcar segment’s results of operations.Fluctuations in commodity or energy prices, including crude oil and gas prices, could negatively impact the activities of our Railcar segment's customersresulting in a corresponding adverse effect on the demand for its products and services. These62shifts in demand could affect our Railcar segment's results of operations and could have an adverse effect on our Railcar segment's profitability.Prices for oil and gas are subject to large fluctuations in response to relatively minor changes in the supply of and demand for oil and gas, market uncertaintyand a variety of other economic factors that are beyond our Railcar segment's control. Worldwide economic, political and military events, including war, terroristactivity, events in the Middle East and initiatives by the Organization of the Petroleum Exporting Countries ("OPEC"), have contributed, and are likely to continueto contribute, to price and volume volatility. Most recently, the increasing global supply of oil in conjunction with weakening demand from slowing economicgrowth in Europe and Asia has created downward pressure on crude oil prices. Changes in environmental or governmental regulations, pipeline capacity, the priceof crude oil and gas and related products and other factors have reduced, and may continue to reduce demand for railcars in the energy transportation industry,including our primary railcar products, and have a material adverse effect on our Railcar segment's financial condition and results of operations.Our Railcar segment may be unable to re-market railcars from expiring leases on favorable terms, which could adversely affect our Railcar segment’sbusiness, financial condition and results of operations.The failure to enter into commercially favorable railcar leases, re-lease or sell railcars upon lease expiration and successfully manage existing leases couldhave a material adverse effect on our Railcar segment's business, financial condition and results of operations. Our Railcar segment's ability to re-lease or sellleased railcars profitably is dependent upon several factors, including the cost of and demand for leases or ownership of newer or specific use models, theavailability in the market of other used or new railcars, and changes in applicable regulations that may impact continued use of older railcars.A downturn in the industries in which our Railcar segment's lessees operate and decreased demand for railcars could also increase its exposure to re-marketing risk because lessees may demand shorter lease terms, requiring us to re-market leased railcars more frequently. Furthermore, the resale market forpreviously leased railcars has a limited number of potential buyers. Our Railcar segment's inability to re-lease or sell leased railcars on favorable terms could resultin lower lease rates, lower lease utilization percentages and reduced revenues.Our Railcar segment operates in highly competitive industries and it may be unable to compete successfully, which could materially adversely affect ourRailcar segment’s business, financial condition and results of operations.Our Railcar segment faces intense competition in all geographic markets and in each area of its business. Our railcar manufacturing business has five primarycompetitors. Any of these competitors may, from time to time, have greater resources than our Railcar segment does. Our Railcar segment’s current competitorshave and may continue to increase their capacity in, or new competitors may enter into, the railcar markets in which our Railcar segment competes. Strongcompetition within the industry has led to pricing pressures and could limit our Railcar segment’s ability to maintain or increase prices or obtain better margins onour Railcar segment's railcars for both direct sale and lease. If our Railcar segment produces any type of railcars other than what it currently produces, it will becompeting with other manufacturers that may have more experience with that railcar type. Further, new competitors, or alliances among existing competitors, mayemerge in the railcar or industrial components industries and rapidly gain market share. Customer selection of railcars for purchase or for lease may be driven bytechnological or price factors and our competitors may provide or be able to provide more technologically advanced railcars or more attractive pricing and/or leaserates than our Railcar segment can provide. Such competitive factors may adversely affect our Railcar segment’s sales, utilization and/or lease rates, andconsequently its revenues.Our Railcar segment also has intense competition in its railcar leasing business from railcar manufacturers, leasing companies, banks and other financialinstitutions. Some of this competition includes certain of its significant customers. Some of our Railcar segment’s railcar manufacturing competitors also producerailcars for use in their own railcar leasing fleets, competing directly with our Railcar segment’s leasing business and with leasing companies. In connection withthe re-leasing of railcars, our Railcar segment may encounter competition from, among other things, competitor railcar leasing companies.Our Railcar segment competes with numerous companies in its railcar services business, ranging from companies with greater resources than it has to small,local companies. In addition, new competitors, or alliances among existing competitors, may emerge, thereby intensifying the existing competition for our Railcarsegment’s railcar services business.Technological innovation by any of our Railcar segment’s existing competitors, or new competitors entering any of the markets in which it does business,could put it at a competitive disadvantage and could cause it to lose market share. Increased competition for our Railcar segment’s manufacturing, railcar leasing orrailcar services businesses could result in price reductions, reduced margins and loss of market share, which could materially adversely affect our Railcarsegment’s prospects, business, financial condition and results of operations.63The variable needs of our Railcar segment’s railcar customers and the timing of completion, customer acceptance as well as the mix of railcars for lease versusdirect sale, all of which may cause our Railcar segment’s revenues and income from operations to vary substantially each quarter, which could result insignificant fluctuations in our Railcar segment’s quarterly and annual results.Our Railcar segment’s results of operations in any particular quarterly period may be significantly affected by the number and type of railcars manufacturedand shipped in that period, which is impacted by customer needs that may vary greatly quarter to quarter and year to year. In addition, because revenues andearnings related to leased railcars are recognized over the life of the lease, our Railcar segment’s quarterly results may vary depending on the mix of lease versusdirect sale railcars that it ships during a given period. The customer acceptance and title transfer or customer acceptance and shipment of our railcars determinewhen our Railcar segment records the revenues associated with our Railcar segment’s railcar sales or leases. Given this, the timing of customer acceptance and titletransfer or customer acceptance and shipment of our railcars could cause fluctuations in our Railcar segment’s quarterly and annual results. The railroads couldpotentially go on strike or have other service interruptions, which could ultimately create a bottleneck and potentially cause us to slow down or halt our Railcarsegment’s shipment and production schedules, which could materially adversely affect our Railcar segment’s business, financial condition and results ofoperations.As a result of these fluctuations, our Railcar segment believes that comparisons of its sales and operating results between quarterly periods within the sameyear and between quarterly periods within different years may not be meaningful and, as such, these comparisons should not be relied upon as indicators of ourRailcar segment’s future performance.If our Railcar segment faces labor shortages or increased labor costs, its growth and results of operations could be materially adversely affected.Our Railcar segment depends on skilled labor in its manufacturing and other businesses. Due to the competitive nature of the labor markets in which ourRailcar segment operates and the cyclical nature of the railcar industry, the resulting employment cycle increases our Railcar segment’s risk of not being able toretain, recruit and train the personnel it requires, particularly when the economy expands, production rates are high or competition for such skilled labor increases.Our Railcar segment’s inability to recruit, retain and train adequate numbers of qualified personnel on a timely basis could materially adversely affect our Railcarsegment’s business, financial condition and results of operations.Our Railcar segment depends upon a small number of customers that represent a large percentage of its revenues. The loss of any single significant customer,a reduction in sales to any such significant customer or any such significant customer's inability to pay our Railcar segment in a timely manner couldmaterially adversely affect our Railcar segment’s business, financial condition and results of operations.Railcars are typically sold pursuant to large, periodic orders, and therefore, a limited number of customers typically represent a significant percentage of ourRailcar segment’s revenue in any given year. The loss of any significant portion of our Railcar segment’s sales to any major customer, the loss of a single majorcustomer or a material adverse change in the financial condition of any one of its major customers could materially adversely affect our Railcar segment’sbusiness, financial condition and results of operations. If one of our Railcar segment’s significant customers was unable to pay due to financial condition, it couldmaterially adversely affect our Railcar segment’s business, financial condition and results of operations.The cost of raw materials and components that our Railcar segment uses in its manufacturing operations, particularly steel, is subject to escalation andsurcharges and could increase. Any increase in these costs or delivery delays of these raw materials could materially adversely affect our Railcar segment’sbusiness, financial condition and results of operations.The cost of raw materials, including steel, and components used in the production of our railcars, represents a significant amount of our Railcar segment’sdirect manufacturing costs per railcar. Our Railcar segment generally includes provisions in their railcar manufacturing contracts that allow it to adjust prices as aresult of increases and decreases in the cost of certain raw materials and components. The number of customers to which our Railcar segment is not able to pass onprice increases may increase in the future, which could adversely affect our Railcar segment’s operating margins and cash flows. If our Railcar segment is not ableto pass on price increases to its customers, our Railcar segment may lose railcar orders or enter into contracts with less favorable contract terms, any of whichcould materially adversely affect our Railcar segment’s business, financial condition and results of operations. Any fluctuations in the price or availability of steel,or any other material or component used in the production of our Railcar segment’s railcars or railcar or industrial components, could materially adversely affectour Railcar segment’s business, financial condition and results of operations. Such price increases could reduce demand for our Railcar segment’s railcars orcomponent products. Deliveries of raw materials and components may also fluctuate depending on various factors including supply and demand for the rawmaterial or component, or governmental regulation relating to the raw material or component, including regulation relating to importation.64Fluctuations in the supply of components and raw materials our Railcar segment uses in manufacturing railcars, which are often only available from a limitednumber of suppliers, could cause production delays or reductions in the number of railcars our Railcar segment manufacture, which could materiallyadversely affect our Railcar segment’s business, financial condition and results of operations.Our Railcar segment’s railcar manufacturing business depends on the adequate supply of numerous railcar components, such as railcar wheels, axles, brakes,bearings, yokes, sideframes, bolsters and other heavy castings and raw materials, such as steel. Some of these components and raw materials are only availablefrom a limited number of domestic suppliers. Strong demand can cause industry-wide shortages of many critical components and raw materials as reliablesuppliers could reach capacity production levels. Supply constraints in our Railcar segment’s industry are exacerbated because, although multiple suppliers mayproduce certain components, railcar manufacturing regulations and the physical capabilities of manufacturing facilities restrict the types and sizes of componentsand raw materials that manufacturers may use.In addition, our Railcar segment does not carry significant inventories of certain components and procures most of its components on an as needed basis. Inthe event that our Railcar segment’s suppliers of railcar components and raw materials were to stop or reduce the production of railcar components and rawmaterials that our Railcar segment uses, or refuses to do business with us for any reason, our Railcar segment’s business would be disrupted. Our Railcar segment’sinability to obtain components and raw materials in required quantities or of acceptable quality could result in significant delays or reductions in railcar shipmentsand could materially adversely affect our Railcar segment’s business, financial condition and results of operations.Our Railcar segment relies on a small number of suppliers from whom it sources a significant amount of its manufacturing materials. If any of our Railcarsegment’s significant suppliers of railcar components were to shut down operations, our Railcar segment’s business and financial results could be materiallyadversely affected as it may incur substantial delays and significant expense in finding alternative sources. The quality and reliability of alternative sources maynot be the same and these alternative sources may charge significantly higher prices. See Part I, "Business - Railcar," of this Report for further discussion regardingsuppliers.Our Railcar segment’s investment in its lease fleet may use significant amounts of cash, which may require it to secure additional capital and it may be unableto arrange capital on favorable terms, or at all.Our Railcar segment uses existing cash and cash generated through lease fleet financings to manufacture railcars it leases to customers, while cash from leaserevenues is received over the term of the applicable lease or leases relating to those railcars. Depending upon the number of railcars that our Railcar segment leasesand the amount of cash used in other operations, its cash balances and its availability under any of its lease fleet financings could be depleted, requiring it to seekadditional capital. Our Railcar segment’s inability to secure additional capital, on commercially reasonable terms, or at all, may limit its ability to supportoperations, maintain or expand our Railcar segment’s existing business, or take advantage of new business opportunities. Our Railcar segment could alsoexperience defaults on leases that could further constrain cash.Changes in legal and regulatory requirements applicable to the industries in which our Railcar segment operates may adversely impact its business, financialcondition and results of operations.Recent derailments in North America of trains transporting crude oil have caused various U.S and Canadian regulatoryagencies, industry organizations, as well as Class I Railroads and community governments, to focus attention on transportationby rail of flammable materials. On May 1, 2015, TC and the Pipeline and Hazardous Materials Safety Administration("PHMSA") of the U.S. Department of Transportation released rules related to rail transport of certain flammable liquids that,among other things, imposes a new tank car design standard, a phase out by as early as January 2018 for older DOT-111 carsthat are not retrofitted, and a classification and testing program for unrefined petroleum based products, including crude oil. Inaddition, railroads and other organizations may impose requirements for railcars that are more stringent than, or in addition to,any governmental regulations that may be adopted. For example, additional laws and regulations have been proposed oradopted that may have a significant impact on railroad operations, including the implementation of “positive traincontrol” (PTC) requirements. PTC is a collision avoidance technology intended to override engineer controlled locomotivesand stop certain types of train accidents.Our Railcar segment is unable to predict what impact these or other regulatory changes may have, if any, on its business or the industry as a whole. Theserules and the industry’s responsiveness in complying with these rules may materially impact the rail industry as a whole; railroad operations; older and newerrailcars that meet or exceed currently mandated standards; future railcar specifications; and the capability of the North American railcar manufacturing, repair andmaintenance infrastructure to implement mandated retrofit configurations or new construction. As a result of such regulations, certain of our Railcar segment'srailcars could be deemed unfit for further commercial use (which would diminish or eliminate future revenue generated from leased railcars) and/or requireretrofits or modifications. The costs associated with any required retrofits or modifications could be substantial. While certain regulatory changes could result inincreased demand for refurbishment and/or new railcar manufacturing activity, our Railcar segment's business, financial condition and results of operations couldbe65materially adversely affected if it is unable to adapt its business to changing regulations or railroad standards, source critical components and raw materials such assteel in a timely manner and at reasonable cost, or at all, and/or take advantage of any increase in demand for our products and services. Our Railcar segmentcannot assure that costs incurred to comply with any new standards and regulations, including those released by PHMSA and TC, will not be material to itsbusiness, financial condition or results of operations.The May 2015 rules also include new operational requirements such as speed restrictions. The speed restrictions may have an adverse impact on demand fortank railcars or other types of freight railcars. While rail velocity is affected by many factors including general economic conditions, and has increased since theadoption of the regulations, in some circumstances the specific velocity restrictions imposed by the regulations may significantly reduce overall velocity oncongested railnetworks. This in turn could lead to an increase in the cost of rail freight transportation and impact availability, making rail lesscompetitive compared to alternative modes of freight transportation. It could also lead to reduced demand for our products asrailroads limit additional equipment on their lines.Train derailments or other accidents involving our Railcar segment's products could subject it to legal claims that may adversely impact our Railcar segment'sbusiness, financial condition and results of operations.Our Railcar segment manufactures railcars for our customers to transport a variety of commodities, including railcars that transport hazardous materials suchas crude oil and other petroleum products. Our Railcar segment also manufactures railcar components as well as industrial components for use in several markets,including the trucking, construction, mining and oil and gas exploration markets. Our Railcar segment could be subject to various legal claims, including claims fornegligence, personal injury, physical damage and product liability, as well as potential penalties and liability under environmental laws and regulations, in theevent of a train derailment or other accident involving our products or services. If our Railcar segment becomes subject to any such claims and are unablesuccessfully to resolve them, our Railcar segment's business, financial condition and results of operations could be materially adversely affected.Litigation claims could increase our costs and weaken our Railcar segment’s financial condition.Our Railcar segment is currently, and may from time to time be, involved in various claims or legal proceedings arising out of its operations. In particular,railcars it manufactures and leases will be used in a variety of manners, which may include carrying hazardous, flammable, and/or corrosive materials. Suchrailcars, as well as our Railcar segment’s railcar and industrial components, will, therefore, be subject to risks of breakdowns, malfunctions, casualty and othernegative events and it is possible that claims for personal injury, loss of life, property damage, business losses and other liability arising out of these or other typesof incidents will be made against our Railcar segment. Additionally, in the normal course of business from time to time our Railcar segment enters into contractswith third parties that may lead to contractual disputes. Adverse outcomes in some or all of these matters could result in judgments against our Railcar segment forsignificant monetary damages that could increase our costs and weaken its financial condition. Our Railcar segment seeks contractual recourse and indemnificationin the ordinary course of business, maintains reserves for reasonably estimable liabilities, and purchases liability insurance at coverage levels based uponcommercial norms in our Railcar segment’s industries in an effort to mitigate our liability exposures. Nevertheless, our Railcar segment’s reserves may beinadequate to cover the uninsured portion of claims or judgments. Any such claims or judgments could materially adversely affect our Railcar segment’s business,financial condition and results of operations. The nature of our Railcar segment’s businesses and assets expose it to the potential for claims and litigation related topersonal injury, property damage, environmental claims, regulatory claims, contractual disputes and various other matters.The success of our Railcar segment’s railcar leasing business is dependent, in part, on its lessees performing their obligations.The ability of each lessee to perform its obligations under a lease will depend primarily on such lessee's financial condition, as well as other various factors.The financial condition of a lessee may be affected by various factors beyond our control, including, but not limited to,competition, operating costs, generaleconomic conditions and environmental and other governmental regulation of or affecting the lessee's industry. High default rates on leases could increase theportion of railcars that may need to be remarketed after they are repossessed from defaulting lessees. There can be no assurance that the historical defaultexperience with respect to our lease fleet will continue in the future.Our Railcar segment’s failure to comply with laws and regulations imposed by federal, state, local and foreign agencies could materially adversely affect ourRailcar segment’s business, financial condition, results of operations and ability to access capital.The industries in which our Railcar segment operates are subject to extensive regulation by governmental, regulatory and industry authorities and by federal,state, local and foreign agencies. The risks of substantial costs and liabilities related to compliance with these laws and regulations are an inherent part of ourRailcar segment’s business. Despite our Railcar segment’s intention to comply with these laws and regulations, our Railcar segment cannot guarantee that it will beable to do66so at all times and compliance may prove to be more costly and limiting than it currently anticipates and compliance requirements could increase in future years.These laws and regulations are complex, change frequently and may become more stringent over time, which could impact our Railcar segment’s business,financial condition, results of operations and ability to access capital. If our Railcar segment fails to comply with the requirements and regulations of theseagencies that impact our Railcar segment’s manufacturing, other processes and reporting requirements, it may face sanctions and penalties that could materiallyadversely affect our Railcar segment’s business, financial condition, results of operations and ability to access capital.Uncertainty surrounding acceptance of our Railcar segment’s new product offerings by our customers, and costs associated with those new offerings, couldmaterially adversely affect our Railcar segment’s business.Our Railcar segment’s strategy depends in part on its continued development and sale of new products, particularly new railcar designs, in order to expand ormaintain its market share in our Railcar segment’s current and new markets. Any new or modified product design that our Railcar segment develops may not gainwidespread acceptance in the marketplace and any such product may not be able to compete successfully with existing or new product designs that may beintroduced by our Railcar segment’s competitors. Furthermore, our Railcar segment may experience significant initial costs of production of new products,particularly railcar products, related to training, labor and operating inefficiencies. To the extent that the total costs of production significantly exceed our Railcarsegment’s anticipated costs of production, it may incur losses on the sale of any new products.Equipment failures, delays in deliveries or extensive damage to our Railcar segment’s facilities, particularly our Railcar segment’s railcar manufacturingplants in Paragould or Marmaduke, Arkansas, could lead to production or service curtailments or shutdowns.An interruption in manufacturing capabilities at our Railcar segment’s railcar plants in Paragould or Marmaduke or at any of its manufacturing facilities,whether as a result of equipment failure or any other reason, could reduce, prevent or delay production of our Railcar segment’s railcars or railcar and industrialcomponents, which could alter the scheduled delivery dates to customers and affect our Railcar segment’s production schedule. This could result in the terminationof orders, the loss of future sales and a negative impact to our Railcar segment’s reputation with our Railcar segment’s customers and in the railcar industry, all ofwhich could materially adversely affect our Railcar segment’s business, financial condition and results of operations.All of our Railcar segment’s facilities and equipment are subject to the risk of catastrophic loss due to unanticipated events, such as fires, earthquakes,explosions, floods, tornados or weather conditions. If there is a natural disaster or other serious disruption at any of our Railcar segment’s facilities, it mayexperience plant shutdowns or periods of reduced production as a result of equipment failures, loss of power, delays in equipment deliveries, or extensive damageto any of our Railcar segment’s facilities, which could materially adversely affect our Railcar segment’s business, financial condition or results of operations.Our Railcar segment's failure to complete capital expenditure projects on time and within budget, or the failure of these projects to operate as anticipatedcould materially adversely affect its business, financial condition and results of operations.Our Railcar segment's capital expenditure projects are subject to a number of risks and contingencies over which it may have little control and that mayadversely affect the cost and timing of the completion of those projects, or the capacity or efficiencies of those projects once completed. If these capital expenditureprojects do not achieve the results anticipated, our Railcar segment may not be able to satisfy our Railcar segment’s operational goals on a timely basis, if at all. Ifour Railcar segment is unable to complete such capital expenditure projects on time or within budget, or if those projects do not achieve the capacity or efficienciesanticipated, our Railcar segment’s business, financial condition and results of operations could be materially adversely affected.Some of our Railcar segment’s railcar services and component manufacturing employees belong to labor unions and strikes or work stoppages by them orunions formed by some or all of our Railcar segment’s other employees in the future could materially adversely affect our Railcar segment’s operations.A portion of the employees at our Railcar segment’s sites are party to collective bargaining agreements. Disputes with regard to the terms of these agreementsor our Railcar segment’s potential inability to negotiate acceptable contracts with these unions in the future could result in, among other things, strikes, workstoppages or other slowdowns by the affected workers. Our Railcar segment cannot guarantee that its relations with its union workforce will remain positive norcan our Railcar segment guarantee that union organizers will not be successful in future attempts to organize our Railcar segment’s railcar manufacturingemployees or employees at our Railcar segment’s other facilities. If our Railcar segment’s workers were to engage in a strike, work stoppage or other slowdown,other employees were to become unionized or the terms and conditions in future labor agreements were renegotiated, our Railcar segment could experience asignificant disruption of our Railcar segment’s operations and higher ongoing labor costs. In addition, our Railcar segment could face higher labor costs in the67future as a result of severance or other charges associated with layoffs, shutdowns or reductions in the size and scope of our Railcar segment’s operations.Our Railcar segment’s manufacturer's warranties expose it to potentially significant claims and Railcar segment’s business could be harmed if its productscontain undetected defects or do not meet applicable specifications.Our Railcar segment may be subject to significant warranty claims in the future relating to workmanship and materials involving its current or future railcaror component product designs. Such claims may include multiple claims based on one defect repeated throughout our Railcar segment’s mass production processor claims for which the cost of repairing the defective component is highly disproportionate to the original cost of the part. These types of warranty claims couldresult in costly product recalls, significant repair costs and damage to our Railcar segment’s reputation, which could materially adversely affect its business,financial condition and results of operations. Unresolved warranty claims could result in users of our Railcar segment’s products bringing legal actions against us.Further, if our Railcar segment’s railcars or component products are defectively designed or manufactured, are subject to recall for performance or safety-related issues, contain defective components or are misused, it may become subject to costly litigation by its customers or others who may claim to be harmed byour Railcar segment’s products. Product liability claims could divert management's attention from our Railcar segment’s business, be expensive to defend and/orsettle and result in sizable damage awards against our Railcar segment.Our Railcar segment has significant amount of indebtedness, which could adversely affect its business, financial condition and results of operations andprevent it from fulfilling its indebtedness obligations.Our Railcar segment is significantly leveraged. As of December 31, 2015 , our Railcar segment had approximately $2.7 billion in indebtedness, consisting ofborrowings under certain credit facilities, term loans and bond securitizations. Our Railcar segment’s significant indebtedness could materially impact itsoperations, and could place us at a competitive disadvantage compared to our less leveraged competitors. It may be difficult for our Railcar operations to satisfy itsrepayment and other obligations with respect to such indebtedness, and it may not be able to refinance its existing indebtedness as it matures. Significantindebtedness may also increase our Railcar segment’s vulnerability to adverse general economic, industry or competitive developments or conditions and limit itsflexibility in planning for, or reacting to, changes in its business and the industry in which it operates. Our Railcar segment may be limited in its ability to raiseadditional capital or obtain additional financing to fund its operations, capital expenditures or other growth initiatives, and other general corporate requirementsand may be required to dedicate a significant portion of our cash flow from operations to interest and principal payments on its indebtedness. Our Railcar segmentis also exposed to the risk of increased interest rates as certain of its borrowings are subject to variable rates of interest. As a consequence of our Railcar segment’slevel of indebtedness, a significant portion of its cash flow from operations may be dedicated to debt service requirements. In addition, the terms of our Railcarsegment’s various credit agreements may contain certain covenants, which if it fails to comply, may trigger an event of default, whereby the lender couldaccelerate the repayment of such debt. Our Railcar segment cannot assure you that our Railcar segment would be able to renegotiate, refinance, restructure orotherwise obtain the necessary funds to satisfy its indebtedness.Changes in the credit markets and the financial services industry could adversely affect our Railcar segment’s business, financial condition and results ofoperations.The credit markets and the financial services industry continue to experience volatility which may result in tighter availability of credit on more restrictiveterms. This could adversely affect our Railcar segment’s liquidity and financial condition if its ability to borrow money to finance operations, obtain credit fromtrade creditors, offer leasing products to its customers or sell railcar assets to other lessors were to be impaired. In addition, our Railcar segment could also beadversely affected by its customers’ ability to purchase or pay for products from it or its suppliers’ ability to provide it with product, either of which couldnegatively affect our Railcar segment’s operations.Our Railcar segment may not be able to generate sufficient cash flow to service its obligations and it may not be able to refinance our indebtedness oncommercially reasonable terms.Our Railcar segment’s ability to make payments on and to refinance its indebtedness and to fund planned capital expenditures, strategic transactions, jointventure capital requirements or expansion efforts will depend on its ability to generate cash in the future. This, to a certain extent, is subject to economic, financial,competitive, legislative, regulatory and other factors that are beyond our Railcar segment’s control.Our Railcar segment’s business may not be able to generate sufficient cash flow from operations and there can be no assurance that future borrowings will beavailable to it in amounts sufficient to enable it to pay its indebtedness as such indebtedness matures and to fund its other liquidity needs. If this is the case, ourRailcar segment will need to refinance all or a portion of our indebtedness on or before maturity, and it cannot be certain that it will be able to refinance any of ourRailcar segment’s indebtedness on commercially reasonable terms, or at all. Our Railcar segment might have to adopt one or more alternatives, such as reducing ordelaying planned expenses and capital expenditures, selling assets, restructuring debt, or68obtaining additional equity or debt financing. These financing strategies may not be implemented on satisfactory terms, if at all. Our Railcar segment’s ability torefinance its indebtedness or obtain additional financing and to do so on commercially reasonable terms will depend on its financial condition at the time,restrictions in any agreements governing our indebtedness and other factors, including the condition of the financial markets and the railcar industry.If our Railcar segment does not generate sufficient cash flow from operations and additional borrowings, refinancing or proceeds of asset sales are notavailable to it, it may not have sufficient cash to enable us to meet all of its obligations.If our Railcar segment is unable to protect its intellectual property and prevent its improper use by third parties, its ability to compete in the market may beharmed.Various patent, copyright, trade secret and trademark laws afford only limited protection and may not prevent our Railcar segment’s competitors fromduplicating its products or gaining access to its proprietary information and technology. These means also may not permit our Railcar segment to gain or maintain acompetitive advantage. To the extent our Railcar segment expands internationally, it becomes subject to the risk that foreign intellectual property laws will notprotect our Railcar segment’s intellectual property rights to the same extent as intellectual property laws in the U.S.Any of our Railcar segment’s patents may be challenged, invalidated, circumvented or rendered unenforceable. Our Railcar segment cannot guarantee that itwill be successful should one or more of our patents be challenged for any reason. If our Railcar segment’s patent claims are rendered invalid or unenforceable, ornarrowed in scope, the patent coverage afforded its products could be impaired, which could significantly impede its ability to market its products, negativelyaffect its competitive position and could materially adversely affect our Railcar segment’s business, financial condition and results of operations.Our Railcar segment’s pending or future patent applications may not result in an issued patent and, if patents are issued to it, such patents may not providemeaningful protection against competitors or against competitive technologies. The United States federal courts may invalidate our Railcar segment’s patents orfind them unenforceable. Competitors may also be able to design around our Railcar segment’s patents. Other parties may develop and obtain patent protection formore effective technologies, designs or methods. If these developments were to occur, it could have an adverse effect on our Railcar segment’s sales. If our Railcarsegment’s intellectual property rights are not adequately protected our Railcar segment may not be able to commercialize its technologies, products or services andits competitors could commercialize its technologies, which could result in a decrease in its sales and market share and could materially adversely affect ourRailcar segment’s business, financial condition and results of operations.Our Railcar segment’s products could infringe the intellectual property rights of others, which may lead to litigation that could itself be costly, result in thepayment of substantial damages or royalties, and prevent it from using technology that is essential to its products.Our Railcar segment cannot guarantee that its products, manufacturing processes or other methods do not infringe the patents or other intellectual propertyrights of third parties. Infringement and other intellectual property claims and proceedings brought against our Railcar segment, whether successful or not, couldresult in substantial costs and harm its reputation. Such claims and proceedings can also distract and divert our Railcar segment’s management and key personnelfrom other tasks important to the success of its business.In the event of an adverse determination in an intellectual property suit or proceeding, or our Railcar segment’s failure to license essential technology, itssales could be harmed and its costs could increase, which could materially adversely affect our Railcar segment’s business, financial condition and results ofoperations.Our Railcar segment may incur future asset impairment charges.Our Railcar operations regularly review long-lived asset investments for impairment, including when events or changes in circumstances indicate the carryingvalue of an asset or investment may not be recoverable. Our Railcar segment may be required to recognize asset impairment charges in the future as a result of aweak economic environment, challenging market conditions, events related to particular customers or asset types, changing regulatory rules, or as a result of assetor portfolio sale decisions by management or other factors that affect our Railcar segment’s estimates of expected cash flows to be generated from its long-livedassets.The use of railcars as a significant mode of transporting freight could decline, become more efficient over time, experience a shift in types of modaltransportation, and/or certain railcar types could become obsolete .As the freight transportation markets our Railcar segment serve continue to evolve and become more efficient, the use of railcars may decline in favor ofother more economic modes of transportation. Features and functionality specific to certain railcar types could result in those railcars becoming obsolete ascustomer requirements for freight delivery change. Our Railcar segment’s operations may be adversely impacted by changes in the preferred method used bycustomers to ship their products, changes in demand for particular products, or by a shift by customers toward purchasing assets rather than leasing them from69our Railcar segment. The industries in which our Railcar segment’s customers operate are driven by dynamic market forces and trends, which are in turninfluenced by economic and political factors in the United States and abroad. Demand for our Railcar segment’s railcars may be significantly affected by changesin the markets in which its customers operate. A significant reduction in customer demand for transportation or manufacture of a particular product or change in thepreferred method of transportation used by customers to ship their products could result in the economic obsolescence of our railcars, including those leased by ourcustomers.GamingTropicana is pursuing, and may in the future pursue, expansion and acquisition opportunities and other strategic transactions that involve inherent risks, anyof which may cause it to not realize anticipated benefits.Our Gaming segment’s business strategy includes the consideration of expansion opportunities in new gaming jurisdictions and underserved markets andacquisition opportunities and other strategic transactions that may arise periodically. For example, in April 2014, Tropicana entered into an agreement to purchaseLumiére. Tropicana may not be able to successfully identify suitable acquisition or other strategic opportunities or complete any particular acquisition,combination, joint venture or other strategic transaction on acceptable terms. Tropicana’s identification of suitable acquisition candidates and other strategicopportunities involves risks inherent in assessing the values, strengths, weaknesses, risks and profitability of these opportunities including their effects on itsbusiness, diversion of its management’s attention and risks associated with unanticipated problems or unforeseen liabilities. If Tropicana is successful in pursuingacquisitions or other strategic opportunities, it may be required to expend significant funds, incur additional debt, or issue additional securities, which maymaterially and adversely affect its results of operations. If Tropicana spends significant funds or incurs additional debt, its ability to obtain financing for workingcapital or other purposes could decline and it may be more vulnerable to economic downturns and competitive pressures. In addition, Tropicana cannot guaranteethat it will be able to finance additional acquisitions or other strategic opportunities, or that it will realize any anticipated benefits from acquisitions or otherstrategic opportunities. Should Tropicana successfully acquire another business, the process of integrating acquired operations into its existing operations mayresult in unforeseen operating difficulties and may require significant financial resources that would otherwise be available for the ongoing development orexpansion of our existing business. The difficulties of integration may be increased by the necessity of coordinating geographically dispersed organizations,integrating personnel with disparate business backgrounds and combining different corporate cultures. In addition, Tropicana may not be effective in retaining keyemployees or customers of the combined businesses. Tropicana may face integration issues pertaining to the internal controls and operations functions of theacquired companies and may not realize cost efficiencies or synergies that it anticipated when selecting its acquisition candidates. Tropicana’s failure to identifysuitable acquisition or other strategic opportunities may restrict its ability to grow its business.Intense competition exists and is growing in the gaming industry, including competition involving the implementation of internet gaming, and Tropicana maynot be able to compete effectively which could negatively affect our Gaming operations.The gaming industry is highly competitive for both customers and employees, including those at the management level. Tropicana faces increasing intensecompetition with numerous casinos and hotel casinos of varying quality and size in market areas where its properties are located. Tropicana also competes withother non-gaming resorts and vacation destinations, and with various other casino and other entertainment businesses and could compete with any new forms ofgaming that exist or may be legalized in the future, including on-line gaming. The casino entertainment business is characterized by competitors that varyconsiderably in their size, quality of facilities, number of operations, brand identities, marketing and growth strategies, financial strength and capabilities, level ofamenities, management talent and geographic diversity. In most markets, Tropicana competes directly with other casino facilities operating in the immediate andsurrounding market areas. In some markets, Tropicana faces competition from nearby markets in addition to direct competition within its market areas as well asthe threat from new, emerging markets. With internet gaming, Tropicana's land based casinos will also potentially be competing in virtual markets that may not beconstrained by geographical limitations.In recent years, competition in existing markets has intensified. For example, competition with the Atlantic City market has increased with Pennsylvania andDelaware commencing live table game operations in fiscal 2010; the opening of a new casino in a Philadelphia suburb in 2012 and the award of the secondPhiladelphia Category 2 license in 2014; five casinos currently operating in Maryland with plans for an additional casino to open in the second half of 2016, andthe addition of table games; two video lottery terminal ("VLT") casinos operating in the New York metropolitan area, three commercial gaming facilities approvedin New York State during 2015 with up to an additional four commercial gaming facilities provided for by New York law in future years and two additional VLTfacilities planned for the eastern parts of New York in the coming years. In September 2012, competition in the Baton Rouge market increased with the opening ofa new casino. In addition, legislation has been introduced in New Jersey to expand casino gaming outside of Atlantic City. Our Gaming segment's ability to makecapital investments in its properties going forward may be constrained due to market conditions, and it may not be able to compete effectively with casinos thathave been modernized or recently expanded.70This expansion of existing casino entertainment properties, the increase in the number of gaming opportunities, the potential emergence of legal internetgaming outside of New Jersey and the aggressive marketing strategies of many of Tropicana's competitors has also increased competition in many markets inwhich it competes, and it expects this intense competition to continue.If Tropicana's competitors operate more successfully than it does, if they are more successful than Tropicana in attracting and retaining employees, if theirproperties are enhanced or expanded, if additional hotels and casinos are established in and around the locations in which it conducts business, or if on-line gamingis permitted and conducted in any of its markets, it may lose market share or the ability to attract or retain employees or customers. In particular, the expansion ofcasino gaming in or near any geographic area, including but not limited to the State of New Jersey, from which Tropicana attracts or expects to attract a significantnumber of its customers could materially adversely affect our Gaming segment's business, financial condition and results of operations.Tropicana expects that competition from internet gaming will continue to grow and intensify.Tropicana expects that it will face increased competition from internet gaming as the potential for legalized internet gaming continues to grow. There arecurrent proposals to legalize internet gaming under federal law. Additionally, several states are currently considering legislation that would legalize internetgaming at the state level. As a result of the Justice Department's December 2011 opinion concerning the applicability of the Wire Act to internet gaming, certainstates including Nevada, Delaware and New Jersey have moved forward with legislation to authorize various forms of intrastate internet gaming. Notably, inFebruary 2013 Nevada amended its internet gaming law to permit Nevada licensed internet providers to commence internet poker and to allow the state to enterinto agreements with other states to create multi-state poker wagering, and in November 2013 New Jersey commenced intrastate internet gaming through AtlanticCity casinos. The New Jersey law provides that licensed Atlantic City casinos including Tropicana AC may offer internet gambling games subject to regulations tobe adopted by the NJDGE. The law provides for a 15% tax on internet gaming gross revenues and permits New Jersey to enter into agreements with other states toengage in multi-state internet wagering pools. The law has a 10 year sunset provision. A number of New Jersey casinos including Tropicana Atlantic Cityparticipate in intrastate Internet gaming. Tropicana's ability to compete in a marketplace containing multiple virtual casino platforms will depend on its ability toeffectively market its internet gaming products to its customers in the face of stiff competition as well as the availability of internet gaming in jurisdictions inwhich it operates casinos. Furthermore, competition from internet lotteries and other internet wagering gaming services, which allow their customers to wager on awide variety of sporting events and play Las Vegas-style casino games from home, could divert customers from its properties and thus adversely affect its business.Such internet wagering services are likely to expand in future years and become more accessible to domestic gamblers as a result of recently announced U.S.Department of Justice positions related to the application of federal laws to intrastate internet gaming and initiatives in some states to consider legislation tolegalize intrastate internet wagering. There are also proposals that would specifically legalize internet gaming under federal law.The casino, hotel and resort industry is capital intensive and Tropicana may not be able to proceed with renovation projects because of market conditions,which could put it at a competitive disadvantage.Tropicana's properties have an ongoing need for renovations and other capital improvements to remain competitive, including replacement, from time to time,of furniture, fixtures and equipment. Tropicana also needs to make capital expenditures to comply with applicable laws and regulations.Renovations and other capital improvements of Tropicana's properties require significant capital expenditures and usually generate little or no cash flow untilthe project is completed. Tropicana may not be able to proceed with planned capital improvement projects because of market conditions. Tropicana's failure torenovate its gaming properties may put it at a competitive disadvantage, which could have a materially adverse effect on our Gaming segment.Renovations and other capital improvements may disrupt Tropicana's operations.Renovation projects may cause Tropicana to temporarily close all or a portion of its facilities to customers and disrupt service and room availability, causingreduced demand, occupancy and rates. For example, in 2014 and 2015 MontBleu and Tropicana AC underwent major renovation projects that impacted operatingresults. As a result, any future capital improvements projects may increase Tropicana's expenses and reduce its cash flows and its revenues and, accordingly, mayhave a materially adverse effect on our Gaming segment.Similarly,Tropicana intends to construct a new landside gaming facility in Evansville, Indiana, which is anticipated to encompass 70,000 square feet ofenclosed space (including approximately 40,000 square feet of casino floor, additional food and beverage outlets and back of house space). Tropicana estimatesthat the development costs for the facility will be at least $50 million. Tropicana anticipates commencement of construction during the second quarter of 2016(subject to receipt of approvals and permits) and completion within 18 to 24 months thereafter. There can be no assurances that Tropicana will receive all therequired approvals and permits to commence construction of the new landside gaming facility, or that it will71finish construction of such facility in a timely manner or within its anticipated budget. Tropicana may encounter delays or other disruptions during construction ofthis facility, which may have a material adverse effect on our Gaming segment's business, financial condition and results of operations.Work stoppages, labor problems and unexpected shutdowns may limit Tropicana's operational flexibility and negatively impact its future profits.Tropicana is party to 10 collective bargaining agreements with different unions. In September 2014, the collective bargaining agreement with UNITE HERELocal 54 covering approximately 1,100 employees at Tropicana AC expired and Tropicana AC is presently operating without an agreement with this union. Therecan be no assurance that Tropicana will be able to enter into a new collective bargaining agreement with UNITE HERE Local 54 or renegotiate the other collectivebargaining agreements with other unions currently in effect. The addition of new or changes to the existing collective bargaining agreements could causesignificant increases in labor costs, which could have a material adverse effect on our Gaming segment.In addition, the unions with which Tropicana has collective bargaining agreements or other unions could seek to organize employees at Tropicana's non-unionproperties or groups of employees at its properties that are not currently represented by unions. Union organization efforts could cause disruptions in its businessesand result in significant costs, both of which could have a material adverse effect on our Gaming segment.Finally, if Tropicana is unable to negotiate these agreements on mutually acceptable terms, the affected employees, including union members with the UNITEHERE Local 54 bargaining unit, may engage in a strike or other job actions instead of continuing to operate without contracts or under expired contracts, whichcould have a materially adverse effect on our Gaming segment, including the operations of Tropicana AC. In 2012, UNITE HERE Local 54 staged several protestactions at Tropicana AC which were disruptive to its business. Any unexpected shutdown of one of the casino properties, including Tropicana AC, from a workstoppage or strike action could have a material adverse effect on our Gaming segment. Moreover, strikes, work stoppages or other job actions could also result inadverse media attention or otherwise discourage customers, including convention and meeting groups, from visiting Tropicana's casinos. There can be no assurancethat Tropicana can be adequately prepared for labor developments that may lead to a temporary or permanent shutdown of any of its casino properties.Tropicana's business is particularly sensitive to reductions in discretionary consumer spending as a result of downturns in the local, regional or nationaleconomy.Consumer demand for casino and hotel properties, such as Tropicana's, are particularly sensitive to downturns in the local, regional or national economy andthe corresponding impact on discretionary spending on leisure activities. Changes in discretionary consumer spending or consumer preferences brought about byfactors such as perceived or actual general economic conditions, the recent housing and credit crises, the impact of high energy and food costs, the increased costof travel, the potential for continued bank failures, perceived or actual declines in disposable consumer income and wealth, the effect of the current economicenvironment and changes in consumer confidence in the economy, or fears of war and future acts of terrorism could further reduce customer demand for amenitiesthat Tropicana offers.The housing crisis and recession in the United States that began in 2008 resulted in a significant decline in tourism and consumer spending. Economicconditions like the recent downturn (and slowdowns or recessions less severe) could cause fewer consumers to spend money or cause consumers to spend lessmoney at Tropicana's properties and could materially adversely affect our Gaming operations. While general economic conditions have modestly improved, therecan be no assurance that they will continue to improve or will not worsen in the future.The state of the global financial markets may impact Tropicana's ability to obtain sufficient financing and credit on a going forward basis which couldnegatively impact its ability to expand its business.In addition to earnings and cash flows from operations, Tropicana relies on borrowed money to finance its business, which may be constrained if it is unableto borrow additional capital or refinance existing borrowings on reasonable terms. Developments in the global financial markets that have led to unpredictablegovernment intervention in the United States and European banking systems, including the fiscal 2008 capital crisis in the banking system, a series of rating agencydowngrades of subprime U.S. mortgage‑related assets and significant provisions for loan losses recorded by major financial institutions and downgrades ofsovereign debt in certain EU member nations, have resulted in volatility in the credit markets, a low level of liquidity in many global financial markets and otheradverse conditions for issuers in fixed income, credit and equity markets. In the recent past, these markets have experienced disruption that had a dramatic impacton the availability and cost of capital and credit. The market interest rate for debt of companies similar to Tropicana's has been volatile. The United States andother governments have enacted legislation and taken other actions to help alleviate these conditions, although there is no assurance that such steps will have theeffect of easing the conditions in global credit and capital markets. Therefore, Tropicana has no assurance that such steps will facilitate its further access to creditor capital markets at desirable times or at rates that it would72consider acceptable, and the lack of such funding could have a material adverse effect on our Gaming operations and its ability to service its indebtedness. Whilethese conditions have recently improved, there can be no assurance that they will not worsen in the future. Tropicana is unable to predict the likely duration orseverity of any disruption in the capital and credit markets, or its impact on the larger economy. A disruption in the global credit and financial markets maymaterially and adversely affect Tropicana's ability to obtain sufficient financing to execute its business strategy.Tropicana may be subject to litigation resulting from its gaming, resort and dining operations, which, if adversely determined, could result in substantiallosses.Tropicana will be, from time to time, during the ordinary course of operating its businesses, subject to various litigation claims and legal disputes, includingcontract, lease, employment and regulatory claims as well as claims made by visitors to its properties. Certain litigation claims may not be covered entirely or at allby its insurance policies or its insurance carriers may seek to deny coverage. In addition, litigation claims can be expensive to defend and may divert Tropicana'sattention from the operations of its businesses. Further, litigation involving visitors to its properties, even if without merit, can attract adverse media attention. As aresult, litigation can have a material adverse effect on its businesses. Tropicana cannot predict the outcome of any action and it is possible that adverse judgmentsor settlements could significantly reduce our Gaming segment revenues.State gaming laws and regulations may require holders of Tropicana's debt or equity securities to undergo a suitability investigation, and may result inredemption of their securities.Many jurisdictions require any person who acquires beneficial ownership of debt or equity securities of a casino gaming company to apply for qualification ora finding of suitability. Generally, any person who fails or refuses to apply for a finding of suitability or a license within the prescribed period after being advisedby gaming authorities that it is required to do so may be denied a license or found unsuitable or unqualified, as applicable. Any holder of securities that is foundunsuitable or unqualified or denied a license, and who holds, directly or indirectly, any beneficial ownership of a gaming entity's securities beyond such period oftime as may be prescribed by the applicable gaming authorities may be guilty of a criminal offense. Furthermore, a gaming entity may be subject to disciplinaryaction if such gaming entity, after receiving notice that a person is unsuitable to be a holder of securities or to have any other relationship with such gaming entityor any of its subsidiaries:•pays that person any dividend or interest upon the securities;•allows that person to exercise, directly or indirectly, any voting ownership right conferred through securities held by that person;•pays remuneration in any form to that person for services rendered or otherwise;•allows that person to continue in an ownership or economic interest or receive any economic benefit; or•fails to pursue all lawful efforts to require such unsuitable person to relinquish the securities including, if necessary, the immediate (or within such othertime period as prescribed by the applicable gaming authorities) purchase of such securities for the lesser of fair value at the time of repurchase or fairvalue at the time of acquisition by the unsuitable holder.In the event that disqualified holders fail to divest themselves of such securities, gaming authorities have the power to revoke or suspend the casino license orlicenses related to the regulated entity that issued the securities. In addition, Tropicana's certificate of incorporation provides that it may redeem its securities froman Unsuitable Person (as such term is defined in Tropicana's certificate of incorporation).Regulation by gaming authorities could adversely affect our Gaming segment's operations.Tropicana is subject to extensive regulation with respect to the ownership and operation of its gaming facilities. Federal, state and local gaming authoritiesrequire that Tropicana and its subsidiaries hold various licenses, qualifications, findings of suitability, registrations, permits and approvals. The gaming regulatoryauthorities have broad powers with respect to the licensing of casino operations and alcoholic beverage service and may deny, revoke, suspend, condition, or limitTropicana's gaming or other licenses, impose substantial fines, temporarily suspend casino operations and take other actions, any one of which could adverselyaffect our Gaming operations.Tropicana owns, operates or has an interest in gaming facilities located in Nevada, Indiana, Mississippi, Missouri, Louisiana, New Jersey and Aruba.Tropicana has obtained all material governmental licenses, qualifications, registrations, permits and approvals necessary for the operation of its gaming facilities asoperations at such facilities are presently conducted. However, there can be no assurance that Tropicana can obtain any new licenses, or renew any existing,licenses, qualifications, findings of suitability, registrations, permits, or approvals that may be required in the future or that existing ones will not be suspended orrevoked. If Tropicana relocates or expands any of its current gaming facilities or enters new jurisdictions, it must obtain all additional licenses, qualifications,findings of suitability, registrations, permits and approvals of73the applicable gaming authorities in such jurisdictions. If state regulatory authorities were to find an officer, director, owner or other person affiliated with itsoperations unsuitable, Tropicana would be required to sever its relationship with that person. Gaming authorities, as well as other state regulatory authorities, mayconduct similar investigations in the future in connection with new equity and debt holders. We cannot predict the outcome of these investigations or their potentialimpact on our Gaming segment.Additionally, certain manufacturers, distributors and suppliers of gaming devices, junkets, goods or services to Tropicana's gaming facilities may be requiredto obtain a license or permit or undergo a suitability investigation by the gaming authorities. There can be no assurance that such licenses, permits or registrationswill be obtained by such vendors. The failure of any such vendors to obtain any required licenses, permits or registrations on a timely basis could materiallyadversely affect our Gaming operations.Tropicana's operations are subject to numerous laws and regulations resulting from its presence in several states and diverse operating activities.In addition to gaming regulations, Tropicana is also subject to various federal, state and local laws and regulations affecting businesses in general. Tropicanaoperates hotels, restaurants, entertainment facilities, parking garages, swimming pools, riverboats and other facilities connected with its core gaming business.Many of these activities are subject to state and local laws and regulations. Such laws and regulations could change or could be interpreted differently in the future,or new laws and regulations could be enacted. For example, in July 2006, New Jersey gaming properties, including Tropicana AC, were required to temporarilyclose their casinos for three days as a result of a New Jersey statewide government shutdown that affected certain New Jersey state employees required to be atcasinos when they are open for business that resulted in loss of revenues. Any cessation of operations as a result of a government shutdown, or similar eventsresulting from laws and regulations affecting businesses, could materially adversely affect our Gaming operations.Potential changes in legislation and regulation could negatively impact Tropicana's gaming operations.From time to time, legislators and special interest groups propose legislation that would expand, restrict, or prevent gaming operations in the jurisdictions inwhich Tropicana operates and in neighboring jurisdictions. Further, from time to time, individual jurisdictions have considered or enacted legislation and referenda,such as bans on smoking in casinos and other entertainment and dining facilities, which could adversely affect Tropicana and, accordingly, our Gaming segment.Any restriction on or prohibition relating to our Gaming segment, or enactment of other adverse legislation or regulatory changes, could materially adversely affectour Gaming operations.Tropicana may be subject to increases in taxation and fees resulting from its gaming operations.The casino gaming industry represents a significant source of tax revenues to the various jurisdictions in which casinos operate. Gaming companies arecurrently subject to significant federal, state and local taxes and fees in addition to the federal and state income taxes that typically apply to corporations, and suchtaxes and fees could increase at any time. From time to time, various state and federal legislators and officials have proposed changes in tax laws or in theadministration of such laws, including increases in tax rates, which would affect the gaming industry. Economic conditions could intensify the efforts of federal,state and local governments to raise revenues through increases in gaming taxes and fees. In addition, growing federal, state or local budget shortfalls resultingfrom the recent recession could prompt tax or fee increases. Any material increase in assessed taxes, or the adoption of additional taxes or fees in any ofTropicana's markets could materially adversely affect our Gaming operations.The risks associated with international operations could affect Tropicana's ability to pursue expansion opportunities.Tropicana currently operates a small casino at its property on the Caribbean island of Aruba. International operations are subject to inherent risks includingvariation in local economies, currency fluctuation, greater difficulty in accounts receivable collection, trade barriers, burden of complying with a variety ofinternational laws, and political and economic instability. Each of these risks could impair Tropicana's ability to execute its business strategy and adversely affectour Gaming operations.Any violation of the Foreign Corrupt Practices Act or applicable Anti-Money Laundering laws or regulations such as the Bank Secrecy Act could have anegative impact on our Gaming operations.Tropicana is subject to risks associated with doing business outside of the United States, which exposes it to complex foreign and U.S. regulations inherent indoing business cross-border and in each of the countries in which it transacts business. Tropicana is subject to regulations imposed by the Foreign CorruptPractices Act (the “FCPA”) and other anti-corruption laws that generally prohibit U.S. companies and their intermediaries from offering, promising, authorizing ormaking improper payments to foreign government officials for the purpose of obtaining or retaining business. Violations of the FCPA and other anti-corruptionlaws may result in severe criminal and civil sanctions as well as other penalties and the SEC and U.S. Department of Justice have increased their enforcementactivities with respect to the FCPA. Internal control policies and procedures and employee training and compliance programs that Tropicana has implemented todeter prohibited practices may74not be effective in prohibiting its directors, employees, contractors or agents from violating or circumventing its policies and the law. If Tropicana's directors,employees or agents fail to comply with applicable laws or company policies governing its international operations, Tropicana may face investigations,prosecutions and other legal proceedings and actions which could result in civil penalties, administrative remedies and criminal sanctions. Any determination thatTropicana has violated the FCPA could have a material adverse effect on our Gaming segment's financial condition. Compliance with international and U.S. lawsand regulations that apply to Tropicana's international operations increases its cost of doing business in foreign jurisdictions. Tropicana also deals with significantamounts of cash in its operations and is subject to various reporting and anti-money laundering regulations such as the Bank Secrecy Act (the “BSA”). The InternalRevenue Service and Financial Crimes Enforcement Network monitor casino compliance with casino filing of Currency Transaction Reports (“CTR”) andSuspicious Activity Report (“SAR”) and anti-money laundering (“AML”) programs and have recently stepped-up enforcement activities involving non-compliantcasinos. Internal control policies and procedures and employee training, AML compliance programs and internal audits involving CTR and SAR filings have beenimplemented to enhance compliance and detect problems. Any violation of anti-money laundering laws or regulations by any of Tropicana's resorts could have anegative effect on our Gaming segment's results of operations.Tropicana could encounter problems during development, construction, renovation and refurbishment of our properties that could increase the constructioncosts or delay their completion. In addition, Tropicana may not be able to complete projects if it does not obtain all necessary permits, licenses, grants andapprovals.Construction projects like the development, construction, renovation and refurbishment of Tropicana AC, MontBleu, Evansville and Tropicana Aruba aresubject to significant development and construction risks, any of which could cause unanticipated cost increases and delays. These include, among others, thefollowing:•adverse weather conditions that damage the project or cause delays;•changes to the plans or specifications;•shortages and increased costs of energy, materials and skilled labor;•engineering problems;•labor disputes and work stoppages;•environmental issues;•fire, flooding and other natural disasters; and•geological, construction, excavation, regulatory and equipment problems.In addition, certain permits, licenses, grants and approvals necessary for development, construction and operation may not be obtained. The scope of theapprovals required for projects vary. Unexpected changes or concessions required by regulatory authorities could involve significant additional costs and result in adelay in the schedule. Tropicana may not receive the necessary licenses, grants and approvals or obtain them within its anticipated time frame. For example, theTropicana AC capital renovation project that was completed in 2015 required grant and other financing approvals from various state agencies as well as approvalof its plans by various federal, state and local regulatory agencies in order for it to proceed with construction. In addition, even if Tropicana completes anydevelopment, construction, renovation and refurbishment projects, it cannot assure you that it will achieve all of, or any of, the anticipated benefits of such projects.Our Gaming operations could be materially adversely affected by the occurrence of accidents, natural disasters, such as hurricanes, or other catastrophicevents, including war and terrorism.Natural disasters, such as hurricanes, floods, fires and earthquakes, could adversely affect our Gaming operations. Hurricanes are common to the areas inwhich Tropicana's Louisiana and Mississippi properties are located and the severity of such natural disasters is unpredictable. In October 2012, Superstorm Sandyresulted in the mandatory closure of Tropicana AC for approximately five days. Although the property did not incur any significant property damage, the severityof the property damage to a large portion of the Atlantic City feeder markets including New Jersey, New York and Pennsylvania resulted in a long term businessinterruption that continued into 2013 and materially affected operating results. Likewise, in August 2011, Hurricane Irene and mandatory governmental evacuationorders for Atlantic City caused an approximately three-day closure of Tropicana AC, adversely affecting our Gaming operations. In May 2011, both of Tropicana'sproperties in Greenville, Mississippi, Lighthouse Point and Jubilee were closed for approximately 29 days as a result of Mississippi River flooding causingsubstantial damage at its Lighthouse Point property and adversely affected our Gaming segment's operating results at its Greenville facilities. Likewise, in August2012, Tropicana's property in Louisiana was forced to temporarily close for approximately 2 days as a result of Hurricane Isaac. We cannot predict the impact thatany future natural disasters will have on Tropicana's ability to maintain its customer base or to sustain its business activities.75Moreover, Tropicana's riverboats face additional risks from the movement of vessels on waterways, such as collisions with other vessels or damage fromdebris in the water. Reduced patronage and the loss of a dockside or riverboat casino from service for any period of time could materially adversely affect ourGaming operations.Catastrophic events such as terrorist and war activities in the United States and elsewhere have had a negative effect on travel and leisure expenditures,including lodging, gaming (in some jurisdictions), and tourism. In addition, any man-made or natural disasters in or around Tropicana's properties could have amaterially adverse effect on our Gaming operations. We cannot predict the extent to which such events may affect Tropicana and, accordingly, our Gamingsegment, directly or indirectly, in the future. We also cannot ensure that Tropicana will be able to obtain any insurance coverage with respect to occurrences ofterrorist acts and any losses that could result from these acts.In the future, the prolonged disruption at any of Tropicana's properties due to natural disasters, terrorist attacks, or other catastrophic events could materiallyadversely affect our Gaming operations.Leisure and business travel, especially travel by air, are particularly susceptible to global geopolitical events, such as terrorist attacks or acts of war orhostility. These events can create economic and political uncertainties that could adversely impact Tropicana's business levels. Furthermore, although Tropicanamay have some insurance coverage for certain types of terrorist acts, insurance coverage against loss or business interruption resulting from war and some forms ofterrorism may be unavailable.Tropicana's properties, including riverboats and dockside facilities, are subject to risks relating to mechanical failure, weather and regulatory compliance.All of Tropicana's facilities are subject to the risk that operations could be halted for a temporary or extended period of time, as result of casualty, forces ofnature, mechanical failure or extended or extraordinary maintenance, among other causes. In addition, Tropicana's gaming operations, particularly those conductedon riverboats or at dockside facilities, could be damaged or halted due to extreme weather conditions. In October 2012 Superstorm Sandy resulted in the mandatoryclosure of Tropicana AC for approximately five days. Although the property did not incur any significant property damage, the severity of the property damage toa large portion of the Atlantic City feeder markets including New Jersey, New York and Pennsylvania has resulted in long term business interruption thatcontinued into 2013 and materially affected operating results. Likewise, in August 2011 Hurricane Irene and mandatory governmental evacuation orders forAtlantic City caused an approximately three-day closure of Tropicana AC, adversely affecting our Gaming operations. In May 2011 both of Tropicana's propertiesin Greenville, Mississippi, Lighthouse Point and Jubilee were closed for approximately 29 days as a result of Mississippi River flooding causing substantialdamage at its Lighthouse Point property and adversely affected our Gaming segment's operating results at its Greenville facilities. Likewise, in August 2012Tropicana's property in Louisiana was forced to temporarily close for approximately 2 days as a result of Hurricane Isaac. Each of Tropicana's riverboats mustcomply with U.S. Coast Guard requirements as to boat design, on-board facilities, equipment, personnel and safety. Each riverboat must hold a Certificate ofInspection for stabilization and flotation, and may also be subject to local zoning codes. The U.S. Coast Guard requirements establish standards, set limits on theoperation of the vessels and require individual licensing of all personnel involved with the operation of the vessels. Loss of a vessel's Certificate of Inspection orAmerican Bureau of Shipping approval would preclude its use as a casino.Except for Tropicana's riverboats that have opted for alternate inspection by the American Bureau of Shipping allowed in those gaming jurisdictions whereTropicana operates that provide for such alternative inspections, U.S. Coast Guard regulations require a hull inspection for all riverboats at five-year intervals.Under certain circumstances, alternative hull inspections may be approved. The U.S. Coast Guard may require that such hull inspections be conducted at a dry-docking facility and, if so required, the cost of travel to and from such docking facility, as well as the time required for inspections of the affected riverboats, couldbe significant. To date, the U.S. Coast Guard has allowed in-place inspections of Tropicana's riverboats. The U.S. Coast Guard may not allow these types ofinspections in the future. The loss of a riverboat casino from service for any period of time could materially adversely affect our Gaming operations.U.S. Coast Guard regulations also require certain of Tropicana's properties to prepare and follow certain security programs. In the first quarter of 2003,Tropicana Evansville implemented the American Gaming Association's Alternative Security Program at its riverboat casino. In November 2012, the IndianaGaming Commission approved Tropicana Evansville to convert from a self-propelled riverboat to a permanently moored craft designation, contingent onsuccessful completion of an emergency drill package to be approved by American Bureau of Shipping ("ABS") and the addition of an additional passenger egressbefore the next annual inspection of the vessel in October 2013. In December 2012, the United States Coast Guard relinquished regulatory oversight of theTropicana Evansville vessel after successful completion of the ABS drills, negating the requirement for the Alternative Security Program. Belle of Baton Rougeapplies a customized alternative security program. The American Gaming Association's Alternative Security Program is specifically designed to address maritimesecurity requirements at riverboat casinos and their respective dockside facilities. Changes to these regulations could adversely affect our Gaming operations.76Noncompliance with environmental, health and safety regulations applicable to Tropicana's hotels and casinos could adversely affect Tropicana's results ofoperations.As the owner, operator and developer of real property, Tropicana must address, and may be liable for, hazardous materials or contamination of these sites andany other off-site locations at which any hazardous material that its activities generate are disposed. Tropicana's ongoing operations are subject to stringentregulations relating to the protection of the environment and handling of waste, particularly with respect to the management of wastewater from its facilities. Anyfailure to comply with existing laws or regulations, the adoption of new laws or regulations with additional or more rigorous compliance standards, or the morevigorous enforcement of environmental laws or regulations could limit Tropicana's future opportunities and, accordingly, could materially adversely affect ourGaming operations by increasing its expenses and limiting its future opportunitiesThe concentration and evolution of the slot machine manufacturing industry could impose additional costs on Tropicana's operations.A majority of Tropicana's gaming revenue is attributable to slot machines operated at its gaming facilities. It is important, for competitive reasons thatTropicana offer popular and technologically advanced slot machine games to its customers. A substantial majority of the slot machines sold in the United States inrecent years were manufactured by a limited number of companies. A deterioration in the commercial arrangements with any of these slot machine manufacturers,or significant industry demand, could result in Tropicana being unable to acquire the slot machines desired by its customers or could result in manufacturerssignificantly increasing the cost of these machines. Going forward, the inability to obtain new and up-to-date slot machine games could impair Tropicana'scompetitive position and result in decreased gaming revenues at its casinos. In addition, increases in the costs associated with acquiring slot machine games couldadversely Tropicana's profitability and, accordingly, have a material adverse effect on our Gaming segment.In recent years, the prices of new slot machines have dramatically increased. Furthermore, in recent years, slot machine manufacturers have frequentlyrefused to sell slot machines featuring the most popular games, instead requiring gaming operators to execute participation lease arrangements for them to be ableto offer such machines to patrons. Participation slot machine leasing arrangements typically require the payment of a fixed daily rental fee. Such agreements may(depending on regulatory restrictions in the applicable jurisdiction) also include a percentage payment to the manufacturer based on the usage of the machine or thegaming company's receipts from the machine, sometimes referred to as "coin-in" or "net win" percentage payments. Generally, a slot machine participation lease ismore expensive over the long term than the cost of purchasing a new slot machine. Tropicana has slot machine participation leases at each of its properties.For competitive reasons, Tropicana may be forced to purchase new, more contemporary slot machines, or enter into participation lease arrangements that aremore expensive than the costs currently associated with the continued operation of existing slot machines. If the newer slot machines do not result in sufficientincremental revenues to offset the increased investment and participation lease costs, it could materially adversely affect our Gaming operations.Tropicana may not have or be able to obtain sufficient insurance coverage to replace or cover the full value of losses it may suffer.Tropicana's casino properties may be subject to extreme weather conditions, including, but not limited to, hurricanes and floods. In the future, such extremeweather conditions may interrupt its operations, damage its properties and reduce the number of customers who visit its facilities. Although Tropicana maintainsboth property and business interruption insurance coverage for certain extreme weather conditions, such coverage is subject to deductibles and limits on maximumbenefits, including limitation on the coverage period for business interruption.We cannot assure you that Tropicana will be able to fully insure such losses or fully collect, if at all, on claims resulting from such extreme weatherconditions. In addition, extreme weather events such as hurricanes and floods have resulted in increases in insurance premiums, increased deductibles and lessfavorable coverage terms. Furthermore, such extreme weather conditions may interrupt or impede access to Tropicana's affected properties and may cause visits toits affected properties to decrease for an indefinite period.While Tropicana maintains insurance against many risks to the extent and in amounts that it believes are reasonable, these policies will not cover all risks.Furthermore, portions of Tropicana's businesses are difficult or impracticable to insure. Therefore, after carefully weighing the costs, risks and benefits of retainingversus insuring various risks, as well as the availability of certain types of insurance coverage, Tropicana occasionally may opt to retain certain risks not coveredby its insurance policies. Retained risks are associated with deductible limits or self-insured retentions, partial self-insurance programs and insurance policycoverage ceilings.Tropicana carries certain insurance policies that, in the event of certain substantial losses, may not be sufficient to pay the full current market value or currentreplacement cost of damaged property. As a result, if a significant event were to occur that77is not fully covered by its insurance policies, Tropicana may lose all, or a portion of, its capital invested in a property, as well as the anticipated future revenuefrom such property. There can be no assurance that Tropicana will not face uninsured losses pertaining to the risks it has retained. Consequently, uninsured lossesmay negatively affect our Gaming operations.Tropicana may not be able to obtain sufficient insurance coverage and cannot predict whether it may encounter difficulty in collecting on any insuranceclaims it may submit, including claims for business interruption.Energy price increases may adversely affect our Gaming segment due to the significant amounts of energy used in Tropicana's operations.Tropicana's casino properties use significant amounts of electricity, oil, natural gas and other forms of energy. Substantial increases in energy and fuel pricesmay negatively affect Tropicana's financial condition and results of operations in the future and, accordingly, our Gaming segment. The extent of the impact issubject to the magnitude and duration of the energy and fuel price increases, but the impact could be material. In addition, energy and gasoline price increases incities that constitute a significant source of customers for Tropicana's properties could result in a decline in disposable income of potential customers and acorresponding decrease in visitation and spending at Tropicana's properties, which would negatively impact our Gaming segment's revenues. Further, increases infuel prices, and resulting increases in transportation costs, could materially adversely affect our Gaming operations.Tropicana may face potential successor liability for liabilities of the predecessors not provided for in the re-organizational plan.Tropicana may be subject to certain liabilities of its predecessors not provided for in the re-organizational plan. Such liabilities may arise in a number ofcircumstances, including but not limited to, those where:•a creditor of Tropicana's predecessors did not receive proper notice of the pendency of the bankruptcy case relating to the re-organizational plan or thedeadline for filing claims therein; or•the injury giving rise to, or the source of, a creditor's claim did not manifest itself in time for the creditor to file the creditor's claim.Although Tropicana has no reason to believe that it will become subject to liabilities of Tropicana's predecessors that are not provided for in the re-organizational plan, should Tropicana become subject to such liabilities, it could materially adversely affect our Gaming segment.Circumstances may arise whereby Tropicana may become overleveraged, which could have significant negative consequences.As of December 31, 2015 , Tropicana had total indebtedness which consisted primarily of its term loan facility. Circumstances may arise that could cause it tobecome overleveraged, which could have significant negative consequences, including:•Tropicana may be more vulnerable to a downturn in the markets in which it operates or a downturn in the economy in general;•Tropicana may be required to dedicate a substantial portion of its cash flow from operations to payments on its indebtedness, which would limitTropicana's ability to use cash flows to fund working capital, capital expenditures, and other general corporate requirements;•Tropicana may be limited in its flexibility to plan for, or react to, changes in its businesses and the industry in which Tropicana operates or entry of newcompetitors into its markets;•Tropicana may be placed at a competitive disadvantage compared to its competitors that have less debt;•Tropicana may be limited in borrowing additional funds; and•Tropicana may have difficulties in satisfying its obligations under its current indebtedness, including the Term Loan Facility.Tropicana's indebtedness is subject to floating interest rates, which may expose it to higher interest payments.A substantial portion of Tropicana's indebtedness is subject to floating interest rates, which makes it more vulnerable in the event of adverse economicconditions, increases in prevailing interest rates, or a downturn in its business. As of December 31, 2015 , amounts outstanding under Tropicana's Term LoanFacility was subject to floating interest rates. Tropicana currently has no hedging arrangements in place to mitigate the impact of higher interest rates. See Part II,Item 8, Notes to Consolidated Financial Statements, Note 10 , " Debt - Gaming" of this Report for further discussion.78Atlantic City property tax valuations and market declines have created stress on the City of Atlantic City’s ability tomanage its finances and have created uncertainty about Atlantic City’s fiscal solvency.In recent years real property tax valuations and assessments of Atlantic City casinos have been significantly reduced as a result of various N.J. Tax Courtproceedings involving casino properties. As a result, in 2014 the City of Atlantic City was required to significantly increase its tax rate in order to meet itsmunicipal budget requirements, and in 2015, although the tax rate did not increase, Atlantic City is operating with a serious ongoing municipal budget deficit, thatif not rectified could result in the City's inability to meet its operating costs and other financial obligations during its current fiscal year. Atlantic City casinoproperty tax assessments are anticipated to continue to decline in future years as casinos continue to appeal excessive property valuations. In addition, in 2014 fourAtlantic City casinos closed and two were sold at reduced values further eroding the municipal tax base. As a result, in late 2014 Atlantic City and the State of NewJersey began to explore various initiatives designed to stabilize casino tax payments and reduce the municipal budget in future years. In 2015 the New Jersey StateLegislature passed legislation that would have created a payment in lieu of taxes (“PILOT”) program for Atlantic City casinos designed to stabilize the casino realestate tax base as well as a series of other bills that would divert funds from other state programs (the CRDA and ACA) to assist Atlantic City with its municipalbudget shortfalls in coming years, but the legislative package was vetoed by the Governor in January 2016. In addition, in January 2016, the emergency managerappointed by the State of New Jersey to oversee Atlantic City's government and address its financial problems issued a report, in part, criticizing the Atlantic Citygovernment for its failure to implement several key economic stabilization measures including the sale of certain city assets. As a result, legislation providing forenhanced State control of City of Atlantic City finances was introduced in the Legislature in February 2016. In addition, revised PILOT legislation that is beingconsidered would include a diversion of certain CRDA and ACA funds to assist Atlantic City with its municipal budget deficits. If a legislative package is notenacted and Atlantic City is unable to maintain fiscal stability it could have an adverse impact on the Atlantic City casino industry including Tropicana's TropicanaAC property.MiningOur Mining segment's financial performance is dependent on the global price of iron ore and global demand levels for iron ore.The economic viability of Ferrous Resources’ business is highly dependent on the market price of iron ore. Ferrous Resources’ longer-term strategy is toproduce and sell iron ore products in the domestic Brazilian market, as well as to the export markets, principally China, Japan, Korea, the Middle East andpotentially Europe. The future revenues Ferrous Resources will be able to achieve from the sale of iron ore products will depend on Brazilian and global demandlevels for iron ore, iron ore international sales prices, the type of iron ore product it sells and the iron (Fe) content of those products. Iron ore prices (including saleprices in Brazil) are largely driven by global demand for crude steel, the primary driver for iron ore demand. Part of Ferrous Resources iron ore export sales aremade pursuant to supply contracts, the sales prices for which are determined based on market price indices and will be subject to certain discounts or premiums(depending on the quality of final product) and periodic price adjustments.Global demand for iron ore products and related sales prices have historically varied, and are expected to continue to vary according to the worldwidedemand for iron ore and steel, which in turn, is likely to be heavily influenced by worldwide economic activity and global iron ore supply levels. Iron ore demandmay also be impacted by regulatory tariffs in effect in major importing or exporting countries. Global iron ore price levels directly impact Ferrous Resources’ salesprices. International iron ore prices have been volatile in recent years, falling from roughly $135 per dry metric ton (“dmt”) in average in 2013 to an average of$97/dmt in 2014 and reached $39/dmt in 2015. Iron ore was trading at an average of approximately $47/dmt in the fourth quarter of 2015.Worldwide prices for iron ore have been mainly determined via a spot pricing mechanism and the sales prices for the products sold by Ferrous Resources aregenerally determined based on market price indices considered as reference for the seaborne iron ore market.A number of factors beyond Ferrous Resources’ control will impact contract and spot iron ore prices and the price which Ferrous Resources may receive forits iron ore production, most notably the levels of worldwide steel production and demand for steel products, the level of worldwide production of iron oreproducts, the relationship between the major iron ore producers and consumers and government tariffs.More recently, oversupply in the global markets for iron ore contributed to a steep decline in price levels for iron ore of the grades produced at Esperança andSantanense (two of Ferrous Resources’ properties) falling below the level necessary to make continuation of mining activities at these properties at currentconditions economically viable. In March 2015 the Esperança and Santanense mines ceased production and were put in care and maintenance.If iron ore oversupply levels continue to keep prices at depressed levels or decline further or if transportation, port, agency79or processing costs were to increase or fail to decline in proportion to the reduction in iron ore prices, Ferrous Resources may not be able to economically produceand sell iron ore from its Viga mine which could result in Ferrous Resources delaying, suspending, reducing or ceasing production activities, which would have amaterial adverse effect on our Mining segment’s business, results of operations, financial condition and prospects.Ferrous Resources has limited cash available and is currently not profitable.Ferrous Resources’ cash levels dropped from $56 million at December 31, 2014 to $14 million at December 31, 2015 primarily due to lower iron ore sellingprices, costs associated with the suspension of operations at its Santanense and Esperança mines and essential capital expenditures at its Viga mine. FerrousResources’ Viga mine, which is currently its only operating mine, is operating at marginal levels of profitability that are not able to support Ferrous Resources’care and maintenance costs at its other mines as well as its corporate overhead. There is no assurance that Ferrous Resources will not run out of cash in the nearfuture resulting in a material adverse effect on our Mining segment's results of operations and financial condition.The iron ore industry is intensely competitive and Ferrous Resources may experience pricing pressure and have difficulty effectively competing with other ironore mining companies.The iron ore industry is characterized by intense competition and a high level of market concentration. Ferrous Resources competes with a number of largeinternational mining companies, many of which have mineral and financial resources substantially greater than those of Ferrous Resources. Industry competitorsmay acquire additional exploration rights over iron ore deposits, with an added advantage of scale in their businesses, reduced costs and proprietary logisticssystems and may engage in pricing or other financial or operational practices that will increase competitive pressure on Ferrous Resources. Competition fromforeign direct investment in Ferrous Resources’ domestic competitors or continued market concentration could result in Ferrous Resource experiencing difficultyestablishing or increasing market share and could have a material adverse effect on our Mining segment’s business, results of operations, financial condition.In addition, if iron ore prices decline further or remain depressed for an extended period, Ferrous Resources may no longer be able to fund its currentoperations and be forced to suspend or cease operations. Any such suspension or termination in operations will require substantial suspension or shutdown costsincluding social, environmental remediation and contract breakage costs. Such costs may exceed the cash available to Ferrous Resources without sales of its coremining assets. Asset sales effected in a market downturn typically do not result in favorable prices and could result in the complete liquidation of FerrousResources without fully satisfying its remaining obligations.Exchange rate instability and changes in the value of the Brazilian real relative to the U.S. dollar and other foreign currencies may adversely affect ourMining segment's financial condition and results of operations.The Brazilian currency has been devalued frequently over the past four decades. Throughout this period, the Brazilian government has implemented variouseconomic plans and exchange rate policies, including sudden devaluations, periodic small devaluations (during which the frequency of adjustments has rangedfrom daily to monthly), exchange controls, dual exchange rate markets and a floating exchange rate system. From time to time, there have been significantfluctuations in the exchange rate between the Brazilian currency and the U.S. dollar and other currencies. For example, the Brazilian real hit a 5-year high ofR$1.5375 to US$1.00 in July 2011 and a 12-year low of R$4.1949 to US$1.00 in September 2015. There can be no assurance that the currency will not fall invalue against the U.S. dollar in the future.Depreciation of the Brazilian real against the U.S. dollar could create additional inflationary pressures in Brazil. Depreciation generally makes it moredifficult to access foreign financial markets and may prompt government intervention, including recessionary economic policies. Conversely, appreciation of theBrazilian real against the U.S. dollar may lead to the deterioration of Brazil’s current account and balance of payments as well as hinder the growth of exports.Ferrous Resources’ functional and reporting currency is the U.S. dollar. Ferrous Resources expects that most of its revenues will be denominated in U.S.dollars, while most of its costs (other than expenses related to debt servicing, which are likely to be U.S. dollar-denominated) will be denominated in Brazilianreais. Ferrous Resources also expects to hold certain assets and incur certain liabilities in other foreign currencies. Consequently, increases in the value of theBrazilian real and other foreign currencies relative to the U.S. dollar may result in a reduction in Ferrous Resources’ reported profits. In addition, because FerrousResources’ functional currency is the U.S. dollar, both at a consolidated and operating company level, Ferrous Resources must translate Brazilian real denominatedassets and liabilities into U.S. dollars. To do so, non-U.S. dollar denominated monetary assets and liabilities are translated into U.S. dollars using the closingexchange rate at the date of the balance sheets. Consequently, increases or decreases in the value of the U.S. dollar versus the Brazilian real and other foreigncurrencies may affect Ferrous Resources’ assets and liabilities in Ferrous Resources’ balance sheets. Depreciation of the U.S. dollar versus such foreign currencieswill increase the value of assets and liabilities on Ferrous Resources’ balance sheets while appreciation of the U.S. dollar versus such foreign currencies willdecrease the value of assets and liabilities on Ferrous Resources’ balance sheets. Appreciation of the Brazilian real against the U.S. dollar would cause FerrousResources’ projected80capital and operating costs (as expressed in U.S. dollars) to increase. Any of the foregoing could adversely affect our Mining segment’s business, financialcondition and results of operations.Ferrous Resources may experience delays in implementing its Viga mining plan or may not be able to implement it in its current form.Ferrous Resources will need to raise a substantial amount of equity and debt financing to build both the Viga 4+ Project and the Viga 17 Project. Only if bothprojects are successfully financed and completed does Ferrous Resources’ business plan target production of iron ore at a rate of 21 million metric tons per yearfrom the Viga Property. While Ferrous Resources currently either owns or has access to the required areas to develop the Viga 21 Project, which covers a total ofapproximately 2,671 hectacres, part of the project area is subject to judicial proceedings relating to challenges over possession rights in such areas. The disputedareas cover approximately 4.7 hectacres, which corresponds to approximately 0.46% of the total project area. Ferrous Resources intends to request the BrazilianNational Department of Mineral Production (“DNPM”) to grant easements over the areas to Ferrous Resources and will seek other legal measures to retainpossession of such areas. However, there can be no assurances that the DNPM will grant such easements or that Ferrous Resources will be successful in retainingpossession of the areas within the timeframe required by Ferrous Resources’ business plan. If Ferrous Resources is unsuccessful in its efforts to secure such rights,it would limit its ability to mine approximately 9% of the otherwise mineable ore reserves at the Viga Property.Our Mining segment's business plans will require substantial capital investment. Actual capital expenditure requirements may be higher than expected andFerrous Resources may have difficulty obtaining required financing.Ferrous Resources will need to make substantial capital investments in order to develop the Viga 17 Project and related processing and infrastructure. FerrousResources currently projects that implementing the Viga 17 Project will require total capital expenditures of approximately $1.2 billion. Ferrous Resources intendsto make such capital investments in the Viga 17 Project only if it is successful in raising the necessary equity and debt financing to fund such capital expenditures.Also, in order to fund capital expenditures required to complete the Viga 4+ Project, Ferrous Resources expects to require additional equity funding togetherwith additional debt. Ferrous Resources may be unable to obtain equity or debt financing in the amounts required in a timely manner, on commercially acceptableterms or at all. If Ferrous Resources is unable to obtain sufficient equity and debt financing in a timely manner the Viga 4+ Project may not be completed.As indicated above, Ferrous Resources will require additional equity and debt financing to fund the capital expenditures anticipated to be required tocomplete the Viga 17 Project. Ferrous Resources’ business plan for the development of the Viga 17 Project is in large part supported by the analysis performed andincluded in certain feasibility studies. Certain feasibility studies were prepared based on the construction work required to complete the Viga 17 Projectcommencing in March 2015. As of the date of this Report, Ferrous Resources has not secured the necessary additional equity and debt financing to fund the capitalexpenditures.There can be no assurance that Ferrous Resources will be successful in raising the equity or debt financing necessary to complete the Viga 4+ Project or theViga 17 Project in a timely manner, on commercially acceptable terms or at all. In addition, Ferrous Resources may also have to raise financing in excess of thatanticipated to complete the Viga 4+ Project and the Viga 17 Project if there are cost overruns. There can be no assurance that Ferrous Resources will be successfulin its efforts to raise such financing or that the terms of any such financing may not be materially less favorable to Ferrous Resources than currently anticipated.Ferrous Resources is also actively considering a number of strategies to increase profitability. To the extent that Ferrous Resources decides to implementthese or other projects, Ferrous Resources’ capital expenditure requirements could increase. To the extent the capital expenditures required to implement any ofthese projects exceed available cash flow, Ferrous Resources may have to maintain bank debt at higher levels or for a longer period of time than currentlyanticipated. Moreover, if bank debt is not available on acceptable terms, or at all, Ferrous Resources may be unable to undertake these projects.Ferrous Resources’ longer term capital expenditure requirements may prove to be significantly higher than its projected capital expenditure requirements,including due to the occurrence of identified potential contingencies.If Ferrous Resources’ capital expenditure requirements prove to be significantly higher than expected it could have a material adverse effect on our Miningsegment’s ability to realize its business plan and on its business, results of operations and financial condition. In addition, if Ferrous Resources fails to generate orobtain sufficient capital resources to establish, develop and operate its business, its business could fail, or Ferrous Resources could be forced to reduce or delaycapital expenditures, sell assets or re-structure future indebtedness, which could materially and adversely affect our Mining segment’s business, results ofoperations, financial condition.81Our Mining segment may not be able to maintain the mining, environmental or other licenses and authorizations necessary to conduct iron ore exploration,mining and production activities.The licensing regime in Brazil for the exploration, extraction and production of minerals is governed primarily by the Brazilian Mining Code (“MiningCode”) and regulations issued thereunder. The conduct of exploration, mining or mineral processing activities in Brazil requires numerous permits, licenses andauthorizations from various Brazilian government agencies, including the DNPM, and relevant state environmental agencies at each phase of mining activity.Ferrous Resources holds all of the mining, environmental licenses and water extraction permits and/or authorizations required to conduct its current mining andprocessing activities, as well as the licenses, permits and authorizations required for the construction and implementation of its planned Viga 17 Project, but not allof the required licenses, permits or authorizations for the projects not included in Ferrous Resources’ immediate plans. Further, Ferrous Resources’ licenses,permits and/or authorizations may be revoked if Ferrous Resources fails to comply with certain prescribed requirements. There can be no assurance that FerrousResources will be able to obtain or maintain the necessary licenses, permits and/or authorizations to implement its business plan on a timely or favorable basis, orat all and any failure to do so could have a material adverse effect on our Mining segment’s business, results of operations, financial condition.Our Mining segment may experience difficulties or delays in accessing transportation infrastructure necessary in order for it to transport or export iron oreproducts at a commercially viable price, or at all.In order for Ferrous Resources to achieve its objective of becoming a large-scale iron ore producer and exporter, it will need to ensure it can transport ironore product to a port at a commercially viable price for onward export by sea. Ferrous Resources currently has short-term access to certain port and rail facilitiesand is exporting some of its production, but this is not a guarantee that Ferrous Resources will continue to have such access to port and rail on a long-term basis.Ferrous Resources does not currently have long-term port and rail agreements in place and may not be able finalize such agreements to secure transport of itsproduct to export markets at commercially viable costs or at all.Delays to Ferrous Resources’ ability to secure long-term port or rail agreements at commercially reasonable levels would likely result in delays to FerrousResources commencing large-scale export activities. Depending on international iron ore prices, this might have a corresponding adverse impact on revenuegeneration and cash flow from operating activities. Unforeseen difficulties in securing access to the planned transportation infrastructure owned by third partiescould also result in our Mining segment’s operating expenditures being higher than projected.Our Mining segment's operations are subject to extensive environmental risks inherent to the mining and iron ore processing industry.Ferrous Resources’ operations are or may become subject to potential risks and liabilities associated with pollution of the environment and the disposal ofwaste products that may occur as a result of its mineral exploration, development and production, including damage to preservation areas, over-development orextraction and accidental spills and leakages. Such potential liabilities include not only the obligation to remedy environmental damage and indemnify affectedthird parties, but also the imposition of court judgments, administrative penalties and criminal sanctions against Ferrous Resources and its employees and executiveofficers. Ferrous Resources has also conducted environmental reclamation work in certain of its properties as a result of inherited environmental problems causedby historic mining activities, and is required to conduct ongoing work agreed with Brazilian environmental authorities as a result of its current operations. AsFerrous Resources conducts this reclamation work, or if it is required to complete more extensive work as a result of new or revised regulatory requirements,Ferrous Resources may experience increased costs and limited production at these sites and may be required to complete such reclamation work before it receivesany financial returns from its properties. In addition, if Ferrous Resources is unable to fully remedy an environmental problem, it may be required to suspendoperations or enter into interim compliance measures pending completion of the required remedy which may result in increased costs and reduced production rates.During the conduct of its operations, Ferrous Resources is subject to regular inspections and spot checks by various regulators, including the DNPM andenvironmental regulators, and reporting requirements for a range of issues relating to environmental pollution. Ferrous Resources must also comply with maximumacceptable concentrations, as determined by the Brazilian state authorities, for air quality, water quality, soils and sediments. Any issues identified in suchinspections or reporting processes and/or any breach of these requirements could have a material adverse effect on our Mining segment’s business, results ofoperations, financial condition.Our Mining segment's mineral resources are based on estimates and it may not be able to convert them into reserves or actual production.Ferrous Resources’ mineral resources are based on estimates only, and no assurance can be given that the estimated quantities or grades of iron ore will beconverted into reserves at the anticipated conversion rates or at all, or that particular levels of recovery and production of iron ore will be realized. Calculation ofmineral resource estimates is a subjective process of approximation of underground mineral deposits that cannot be measured in an exact manner, and the accuracyof any82resource estimate is a function of the quality of available data and engineering and geological interpretation and judgment. The estimates of Ferrous Resources’mineral resources have been derived on the basis of assays of drilled samples to which established methods of estimating measured, indicated and inferred mineralresources have been applied. However, there is uncertainty in any mineral resource estimate and subsequent results of actual mining and production operations maylead to revisions of initial estimates or to the realization that the mineral resource estimates do not convert into proven or probable reserves at the expectedconversion rates or at all. Moreover, fluctuations in the market price of iron ore, reduced recovery rates or increased production costs due to inflation or otherfactors may render resources uneconomically viable to extract. The estimated mineral resources should not be interpreted as an assurance of reserves of thecommercial viability, potential or profitability of any future operations. If the estimated mineral resources prove inaccurate, this would have a material adverseeffect on our Mining segment’s business, operating results, financial condition.Our Mining segment may face uncertainties relating to the identification of viable ore bodies at future exploration sites.Ferrous Resources may need to identify, access and develop additional mineral deposits, resources and reserves in order to continue its mining activitiesbeyond what is envisaged in its current business plan upon the depletion of the anticipated mineral resources at its properties. Future exploration programs may failto result in the development of resources and reserves or in the expansion or replacement of reserves depleted by production. Any mineral exploration programrequires locating economically viable ore bodies, identifying appropriate metallurgical processes, obtaining required governmental permits and constructingmining and processing facilities. No assurance can be given that any mineral exploration program that Ferrous Resources may choose to develop will result in thediscovery of new resources and reserves or the establishment or continuation of an economically viable mine.Our Mining segment's ability to construct and implement its projects depends on the provision of important services and equipment by third parties.Ferrous Resources depends heavily on third-party contractors and consultants for the provision of certain services, such as project management, engineering,construction, process design and planning, as well as third-party providers of mining equipment in order to develop its properties and conduct its operations.Ferrous Resources has entered into, or is in the process of negotiating, arrangements for certain of these services, such as process design and engineering; however,there can be no assurance that Ferrous Resources will be able to secure on a timely manner or on commercially acceptable terms or at all the provision of all theservices that it will need to be successful or that the arrangements it does enter into will be sufficient for Ferrous Resources’ future needs or will not be interruptedor cease altogether. In particular, certain of Ferrous Resources’ equipment rental and other service contracts may be terminable at will by the service provider.In addition, certain of the services required for Ferrous Resources’ operations and strategic developments are or may in the future be available oncommercially reasonable terms only from a limited number of providers. In particular, Ferrous Resources may encounter difficulty in securing the services ofspecialized contractors due to high demand for those services resulting from significant competition from other mining companies operating in the Iron OreQuadrangle in the State of Minas Gerais, Brazil. Ferrous Resources’ business may be negatively affected by the failure or delay of third parties in supplying theseservices, by any change to the terms on which these services are made available by third-party providers or by third-party providers failing to provide services thatmeet Ferrous Resources’ quality requirements.If Ferrous Resources is forced to change a provider of such services, it may experience additional costs, interruptions to supply continuity or other adverseeffects on its business. There also can be no assurance that Ferrous Resources would be able to find adequate replacement services on a timely basis or at all.Should Ferrous Resources be unable to acquire or retain providers of key services on favorable terms, or should there be interruptions to, or inadequacies with, anyservices provided, this could have a material adverse effect on our Mining segment’s business, results of operations, financial condition.Our Mining segment's compliance with health and safety laws may require increased capital expenditures, and non-compliance may subject it to significantpenalties.Ferrous Resources is required to comply with a range of health and safety laws and regulations in connection with its business activities. A violation of healthand safety laws relating to a mine, or at a processing or other plant, or a failure to comply with the instructions of the relevant health and safety authorities, couldlead to, amongst other things, a temporary shutdown of all or a portion of the mine or of a processing or other plant; a loss by Ferrous Resources of its right to mineor operate a processing or other plant, or the imposition of costly compliance measures. If health and safety authorities require Ferrous Resources to shut down allor a portion of a mine or a processing or other plant or to implement costly compliance measures, whether pursuant to existing or new health and safety laws andregulations, or the more stringent enforcement of existing laws and regulations, such measures could have a material adverse effect on our Mining segment’sbusiness, results of operations, financial condition.83Our Mining segment's surface rights, mineral rights or ownership rights to companies holding mineral rights or surface rights, have been and may in thefuture be challenged by prior owners, bankruptcy trustees and creditors of prior owners, among others, and may give rise to various successor liabilities.Some of Ferrous Resources’ surface rights and mineral rights which Ferrous Resources has acquired in the past have been the subject of disputes by thirdparties challenging Ferrous Resources’ or a previous owner’ ownership rights. Companies, surface rights and mineral rights that Ferrous Resources acquires in thefuture may be or become subject to similar claims. Third parties may have known or unknown valid claims relating to portions of Ferrous Resources’ interests,including prior unregistered liens, agreements, transfers or claims, and title may be affected by, among other things, undetected defects. In particular, FerrousResources has acquired, and may acquire, companies, surface rights or mineral rights that are the subject of debt restructuring or bankruptcy proceedings. UnderBrazilian law, claims may be brought challenging subsequent transfers of assets or rights that were previously subject to or indirectly involved in debt restructuringor bankruptcy proceedings, or attempting to link the debt restructuring or bankruptcy proceedings and such subsequent transfers.If historical transfers are successfully challenged or if Ferrous Resources is unsuccessful in defending against easement or adverse possession claims or otherunknown successor liabilities, it risks losing its ownership interest in such assets or rights, having its ability to use them impeded or becoming liable forunanticipated liabilities or penalties, each of which could have a material adverse effect on our Mining segment’s business, financial condition, results ofoperations.Our Mining segment's business is subject to the risk of operational disruptions, damage to property or injury to persons.Ferrous Resources’ business operations, like those of other mining companies, are subject to a number of risks and hazards, including industrial and railwayaccidents, rock falls, environmental hazards, power outages, equipment failures, unusual or unexpected geological conditions, severe weather conditions and othernatural phenomena or “acts of God.” Ferrous Resources already engages and intends to continue to engage primarily in open pit mining of its mineral rights areas.In conducting and developing its open pit mining operations, Ferrous Resources must from time to time take certain measures to prepare the mineral rights areasincluding environmental reclamation, excavation, clearing and pit wall support works. Hazards associated with preparatory mining works and open pit mininginclude accidents involving the operation of open pit mining and rock transportation equipment, the preparation and ignition of large-scale open pit blastingoperations, the collapse of open pit walls and the flooding of open pits. Ferrous Resources’ operations currently require the removal of groundwater during mining,which may give rise to additional hazards including, but not limited to, accidents and flooding.Ferrous Resources also faces risks with respect to its processing activities. Hazards associated with processing include the risk of accidents caused byoperating crushing and concentrating plants and equipment.Ferrous Resources may experience mine or plant shutdowns or periods of reduced production as a result of any of the above factors. Such factors could alsoresult in material damage to, or the destruction of, mineral properties or production facilities, human exposure to pollution, personal injury or death, environmentaland natural resource damage, delays in mining, delays in shipment, monetary losses and possible legal liability, each of which could have a material adverse effecton our Mining segment’s business, results of operations, financial condition.Our Mining segment may face uninsured costs and liabilities.Ferrous Resources, as a participant in exploration and mining programs, may become subject to liability for hazards for which it cannot be insured, whichcould exceed policy limits or against which it may elect not to be insured due to high premium costs. These risks include but are not limited to industrial accidents,railway accidents, rock falls, environmental hazards, power outages, equipment failures, unusual or unexpected geological conditions, severe weather conditionsand other natural phenomena or “acts of God.” These events may damage or destroy mining properties, production facilities, transport facilities and equipment, aswell as lead to personal injury or death, environmental damage, waste from intermediary products or resources, mining, production or transportation delays andmonetary losses or legal liability. There is no assurance that Ferrous Resources will be able to rebuild damaged property in a timely manner or at all.Ferrous Resources has limited insurance coverage for most of its plant and facilities, for business interruption, for third-party liability in respect of propertyand for environmental damage arising from accidents on its property or relating to its operations. Ferrous Resources intends to obtain additional comprehensiveinsurance coverage in the future in relation to its sites to the extent Ferrous Resources believes necessary as Ferrous Resources further develop its mining projects.However, there is no guarantee that Ferrous Resources will be able to secure adequate levels of insurance coverage on economically viable terms or at all.Moreover, there is no assurance that Ferrous Resources will be able to maintain existing levels of insurance in the future at rates it considers to be reasonable. Tothe extent that Ferrous Resources is unable, or elects not, to obtain full insurance coverage, there is a risk that losses and liabilities arising from such events couldsignificantly increase its costs and have a material adverse effect on our Mining segment’s business, results of operations, financial condition.84Our Mining segment's financial condition may be adversely affected by changes in applicable taxation regimes or in the taxation residence.The board of directors of Ferrous Resources currently conducts and intends to continue to conduct the affairs of Ferrous Resources in a manner such that it istreated as resident in the Isle of Man for Isle of Man tax purposes. This means, broadly, that Ferrous Resources’ profits, income and gains will be subject to the Isleof Man tax regime. Any dividends paid Ferrous Resources will be regarded as Isle of Man dividends.It is possible that in the future, whether as a result of a change of law or the practice of any relevant tax authority, or as a result of any change in themanagement or the conduct of Ferrous Resources’ affairs, it could become, or be treated as having become, resident in a jurisdiction other than the Isle of Man,therefore becoming subject to the tax regime of a jurisdiction other than the Isle of Man. This could materially adversely affect our Mining segment’s operations.Fluctuations in the global economy may have an adverse effect on the Brazilian economy and our Mining segment's operations.Brazil’s economy is influenced, to varying degrees, by economic and market conditions in the global economy, both in other emerging markets and indeveloped countries, and especially other Latin American countries. The reaction of investors to developments in one country may cause the capital markets inother countries to fluctuate. Continuing uncertainty can reduce the confidence of international investors and bring volatility to the markets. Recent economicuncertainty and volatility appears to have impaired parts of the global economy and, indirectly, the growth of emerging markets, including Brazil, which haverecently experienced slower growth. Negative effects of the global economy and the Brazilian economy could lead to reduced liquidity, crashes in the creditmarkets and economic recession or decelerated growth in Brazil, which in turn could negatively affect our Mining segment's business, results of operations,financial condition.In addition, as Brazil is a major producer and exporter of metal and agricultural products, the Brazilian economy is especially vulnerable to declines in worldcommodity prices and the imposition of import tariffs by the United States, the European Union or other major export markets, such as China. An increase inimport tariffs may decrease demand for products exported by Brazilian companies. Any such developments may have a negative effect on the Brazilian economyand thus on our Mining segment's business, results of operations, financial condition.All of the operations of our Mining segment are in Brazil or are related to Brazilian assets, and therefore Brazilian economic and political conditions mayadversely affect our Mining segment's financial condition and results of operations.All operations of Ferrous Resources are in Brazil or are related to Brazilian assets. Accordingly, its financial condition, results of operations and prospects aresubstantially dependent on Brazil’ economy, which in the past has been characterized by frequent and occasionally drastic intervention by the Braziliangovernment as well as volatile economic cycles. Ferrous Resources’ business, results of operations, financial condition and prospects may be adversely affected by,among others, the following economic, social and political conditions in Brazil:•interest rate and currency exchange rate fluctuations;•the supply and price of energy;•inflation;•exchange controls and restrictions (including restrictions on remittance of dividends);•monetary policy;•tax policy;•environmental policy;•policies impacting Brazil’ logistical infrastructure;•liquidity of domestic capital and lending markets;•social and political instability;•policies and actions to combat corruption and kickback practices; and•other political, diplomatic, social and economic developments in or affecting Brazil.The Brazilian government frequently intervenes to address various economic, social and political conditions occurring in Brazil and the Brazilian governmenthas often changed monetary, taxation, credit, tariff and other policies to influence the Brazilian economy. For example, the Brazilian government actions to controlinflation and stabilize the economy have in the past involved the setting of wage and price controls and fluctuation in the Brazilian Central Bank base interest rates,blocking access to bank accounts, imposing exchange controls and limiting imports into Brazil. Actions taken by the Brazilian government concerning theeconomy may have significant effects on Brazilian companies, including Ferrous Resources. For example, in the past, the Brazilian government maintaineddomestic price controls, and Ferrous Resources cannot assure you that price controls will not be re-imposed in the future, which could have a material adverseeffect on our Mining segment. Our Mining segment's financial condition and results of operations may also be materially and adversely affected by the following85factors and the Brazilian government actions in response to them:•interest rate and currency exchange rate fluctuations;•the supply and price of energy;•inflation;•exchange controls and restrictions (including restrictions on remittance of dividends);•monetary policy;•tax policy;•environmental policy;•policies impacting Brazil’ logistical infrastructure;•liquidity of domestic capital and lending markets;•social and political instability;•policies and actions to combat corruption and kickback practices; and•other political, diplomatic, social and economic developments in or affecting Brazil.Ferrous Resources has no control over these factors, and cannot predict what policies or actions the Brazilian government may take in the future and whetherthese policies will negatively affect the economy and our Mining segment's business, financial condition and results of operations.Uncertainty over whether the Brazilian government will implement changes in policies or regulations affecting these or other factors in the future maycontribute to economic uncertainty in Brazil and to heightened volatility of Brazilian companies. Historically, the political situation in Brazil has impacted theperformance of the Brazilian economy. Past political crises have affected the confidence of investors and the public, generally resulting in an economic slowdownand volatility of securities offered by Brazilian companies. The current political situation in Brazil is highly uncertain, diminishing expectations for a near termrecovery of its economy.During 2015, the Brazilian Central Bank reduced the growth outlook for 2016. In addition, Standard & Poor and Fitch downgraded Brazil’s long-term debtrating to BB+ during 2015. The downgrades of Brazil's long-term credit rating limit Ferrous Resources’ ability to access funding and increase its borrowing costs,thereby adversely impacting our Mining segment's business, results of operations, financial condition.Food PackagingViskase faces competitors that are better capitalized than it is, and the continuous-flow nature of the casings manufacturing process forces competitors tocompete based on price in order to maintain volume, which could adversely affect our Food Packaging operations.Viskase faces competition in the United States and internationally from competitors that may have substantially greater financial resources than it has. Thecellulosic casings industry includes competitors that are larger and better capitalized than Viskase is. Currently, Viskase's primary competitors include Viscofan,S.A., Kalle Nalo GmbH and VT Holding Group, although new competitors could enter the market or competing products could be introduced. The continuous-flow nature of the casings manufacturing process has historically required competitors in its industry to compete based on price in order to maintain volume, whichcould result in lower pricing. Viskase believes the current and planned cellulosic production capacity in its industry exceeds global demand, and will continue to doso in the near term. Viskase attempts to differentiate its products on the basis of product quality and performance, product development, service, sales anddistribution, but Viskase and competitors in its industry have used price as a competitive factor in an attempt to obtain greater volumes. If prices decline, Viskasemay not be able to achieve profitability, whereas certain of its competitors who are better capitalized may be positioned to absorb such price declines. Any of thesefactors could adversely affect our Food Packaging operations.Viskase receives its raw materials from a limited number of suppliers, and problems with its suppliers could impair its ability to meet its customers' productdemands.Viskase's principal raw materials, paper and pulp, constitute an important aspect and cost factor of its operations. Viskase generally purchases its paper andpulp from a single source or a small number of suppliers. Any inability of its suppliers to timely deliver raw materials or any unanticipated adverse change in itssuppliers could be disruptive and costly to Viskase. Viskase's inability to obtain raw materials from its suppliers would require it to seek alternative sources. Thesealternative sources may not be adequate for all of Viskase's raw material needs, nor may adequate raw material substitutes exist in a form that its processes couldbe modified to use. These risks could materially and adversely affect our Food Packaging operations.86Viskase's failure to efficiently respond to industry changes in casings technology could jeopardize its ability to retain its customers and maintain its marketshare.Viskase and other participants in its industry have considered alternatives to cellulosic casings for many years. As resin technology improves or othertechnologies develop, alternative casings or other manufacturing methods may be developed that threaten the long-term sustainability and profitability of Viskase'scellulosic casings, which is its core product, and its fibrous casings. Viskase's failure to anticipate, develop or efficiently and timely integrate new technologies thatprovide viable alternatives to cellulosic casings, including plastic and film alternatives, may cause it to lose customers and market share to competitors integratingsuch technologies, which, in turn, would negatively impact our Food Packaging operations.Sales of Viskase's products could be negatively affected by problems or concerns with the safety and quality of food products.Viskase could be adversely affected if consumers in the food markets were to lose confidence in the safety and quality of meat or poultry products,particularly with respect to processed meat or poultry products for which casings are used, such as hot dogs, deli meats and sausages. Outbreaks of, or even adversepublicity about the possibility of, diseases such as avian influenza and “mad cow disease,” food-borne pathogens, such as E. coli and listeria, and any other foodsafety problems or concerns relating to meat and poultry products may discourage consumers from buying such products. These risks could also result in additionalgovernmental regulations, or cause production and delivery disruptions or product recalls. Each of these risks could adversely affect our Food Packagingoperations.Business interruptions at any of Viskase's production facilities could increase its operating costs, decrease its sales or cause it to lose customers.The reliability of Viskase's production facilities is critical to the success of its business. In recent years, Viskase has streamlined its productive capacity to bebetter aligned with its sales volumes. At current operating levels, Viskase has little or no excess production capacity for certain products. If the operations of any ofits manufacturing facilities were interrupted or significantly delayed for any reason, including labor stoppages, Viskase may be unable to shift production toanother facility without incurring a significant drop in production. Such a drop in production would negatively affect its sales and its relationships with itscustomers.Viskase's international sales and operations expose it to political and economic risks in foreign countries, as well as to risks related to currency fluctuations,all of which could impair its ability to do business at the international level.Viskase currently has manufacturing or sales and distribution centers in six foreign countries: Brazil, France, Italy, Mexico, Philippines and Poland. Itsinternational sales and operations may be subject to various political and economic risks, including, but not limited to, possible unfavorable exchange ratefluctuations or hyperinflation; changes in a country's or region's political or economic conditions; governmental regulations, including import and export controls;tariffs; limits on the repatriation of funds; and taxes. Viskase's sales to customers located outside the United States generally are subject to taxes on the repatriationof funds. In addition, international operations in certain parts of the world may be subject to international balance of payments difficulties that may raise thepossibility of delay or loss in the collection of accounts receivable from sales to customers in those countries. Historically, net sales to customers located outsidethe United States represent the majority of Viskase's total net sales.Should any of these risks occur, it could impair Viskase's ability to export its products or conduct sales to customers located outside of the United States andresult in a loss of sales and profits from its international operations.Continued consolidation of Viskase's customers and increasing competition for those customers may put pressure on its sales volumes and revenues.In recent years, the trend among Viskase's customers has been towards consolidation within the meat processing industry. These consolidations haveenhanced the purchasing power of its customers who, not being contractually obligated to purchase its products, tend to exert increased pressure with respect topricing terms, product quality and new products. As Viskase's customer base continues to consolidate, the already high level of competition for the business offewer customers is expected to intensify. If Viskase does not continue to enhance the value of its product offering in a way that provides greater benefit to itscustomers, Viskase's sales volumes and revenues could decrease.Viskase's intellectual property rights may be inadequate or violated, or it may be subject to claims of infringement, both of which could negatively affect itsfinancial condition.Viskase relies on a combination of trademarks, patents, trade secret rights and other rights to protect its intellectual property. Viskase's trademark or patentapplications may not be approved and its trademarks or patents may be challenged by third parties. Viskase cannot be certain that the steps it has taken will preventthe misappropriation of its intellectual property, particularly in foreign countries where the laws may not protect its rights as fully as the laws of the United States.From time to87time, it has been necessary for Viskase to enforce its intellectual property rights against infringements by third parties, and Viskase expects to continue to do so inthe ordinary course of its business. Viskase also may be subjected to claims by others that it has violated their intellectual property rights. Even if Viskase prevails,third party-initiated or company-initiated claims may be time consuming and expensive to resolve, and may result in a diversion of Viskase's time and resources.The occurrence of any of these factors could diminish the value of its trademark, patent and intellectual property portfolio, increase competition within its industryand negatively impact its sales volume and revenues.A substantial portion of Viskase's business is conducted through foreign subsidiaries, and its failure to generate sufficient cash flow from these subsidiaries, orotherwise repatriate or receive cash from these subsidiaries, could result in its inability to repay its indebtedness.Viskase's sales to customers located outside the United States are conducted primarily through subsidiaries organized under the laws of jurisdictions outsideof the United States. Viskase's ability to meet its debt service obligations with cash from foreign subsidiaries will depend upon the results of operations of thesesubsidiaries and may be subject to contractual or other restrictions and other business considerations. In particular, to the extent Viskase's foreign subsidiaries incuradditional indebtedness to expand its operations, the ability of its foreign subsidiaries to provide us cash may be limited. In addition, dividend and interestpayments to Viskase from its foreign subsidiaries may be subject to foreign withholding taxes, which would reduce the amount of funds it receives from suchforeign subsidiaries. Dividends and other distributions from Viskase's foreign subsidiaries may also be subject to fluctuations in currency exchange rates andrestrictions on repatriation, which could further reduce the amount of funds it receives from such foreign subsidiaries.Real EstateEconomic downturns may have an adverse effect on the real estate market more than on other industries and its recovery may lag behind the economy as awhole.Sales of our vacation properties in New Seabury, Massachusetts and Florida rely heavily on favorable credit markets and a robust economy. Sale or leasing,including lease renewals, of the commercial properties in our net lease portfolio also rely heavily on financially healthy buyers and tenants. During economicdownturns, the value of our real estate portfolio may decline. We cannot assure that our Real Estate operations will be able to recoup its investments in itsresidential properties or continue to sell or lease its commercial properties at profitable rates. If commercial real estate leases expire during an economic downturn,there can be no assurance that the renewed rents will equal or exceed prior rents, and cost of tenant improvements and other costs would adversely impact propertyvalues.Our investment in property development may be more costly than anticipated.Our Real Estate segment has invested and expects to continue to invest in unentitled land, undeveloped land and distressed development properties. Theseproperties involve more risk than properties on which development has been completed. Unentitled land may not be approved for development. These investmentsdo not generate any operating revenue, while costs are incurred to obtain government approvals and develop the properties. Construction may not be completedwithin budget or as scheduled and projected rental levels or sales prices may not be achieved and other unpredictable contingencies beyond the control of our RealEstate operations could occur. Our Real Estate segment will not be able to recoup any of such costs until such time as these properties, or parcels thereof, are eitherdisposed of or developed into income-producing assets.Our Real Estate operations may face adverse effects from tenant bankruptcies or insolvencies.The bankruptcy or insolvency of tenants in our retail, industrial and office properties may adversely affect the income produced by our properties. If a tenantdefaults, our Real Estate operations may experience delays and incur substantial costs in enforcing its rights as landlord. If a tenant files for bankruptcy, our RealEstate operations cannot evict the tenant solely because of such bankruptcy. A court, however, may authorize a tenant to reject or terminate its lease with us. OurReal Estate operations may also incur additional vacancy and other re-tenanting expense.Our Real Estate operations may be subject to environmental liability as an owner or operator of development and rental real estate.Under various federal, state and local laws, ordinances and regulations, an owner or operator of real property may become liable for the costs of removal orremediation of certain hazardous substances, pollutants and contaminants released on, under, in or from its property. These laws often impose liability withoutregard to whether the owner or operator knew of, or was responsible for, the release of such substances. To the extent any such substances are found in or on anyproperty invested in by us, our Real Estate segment could be exposed to liability and be required to incur substantial remediation costs. The presence of suchsubstances or the failure to undertake proper remediation may adversely affect the ability to finance, refinance or dispose of such property. Our Real Estatesegment generally conducts a Phase I environmental site assessment on properties in which it is considering investing. A Phase I environmental site assessmentinvolves record review, visual site assessment and personnel88interviews, but does not typically include invasive testing procedures such as air, soil or groundwater sampling or other tests performed as part of a Phase IIenvironmental site assessment. Accordingly, there can be no assurance that any assessments conducted will disclose all potential liabilities or that future propertyuses or conditions or changes in applicable environmental laws and regulations or activities at nearby properties will not result in the creation of environmentalliabilities with respect to a property.A rising interest rate environment may reduce values of rental real estate properties.A rising interest rate environment may negatively impact values and rental rates may not be able to be raised in a timely manner or at all in order to offset thenegative impact on values of increasing rates.Government regulations and legal challenges may delay the start or completion of our Real Estate segment's development activities, increase its expenses orlimit its home building activities, which could have a negative impact on our Real Estate operations.The approval of numerous governmental authorities must be obtained in connection with our Real Estate segment's development activities, and thesegovernmental authorities often have broad discretion in exercising their approval authority. Our Real Estate segment incurs substantial costs related to compliancewith legal and regulatory requirements. Any increase in legal and regulatory requirements may cause our Real Estate segment to incur substantial additional costs,or in some cases cause it to determine that the property is not feasible for development. Various local, state and federal statutes, ordinances, rules and regulationsconcerning building, zoning, sales and similar matters apply to and/or affect the housing industry. Governmental regulation affects construction activities as well assales activities, mortgage lending activities and other dealings with home buyers. The industry also has experienced an increase in state and local legislation andregulations that limit the availability or use of land. Municipalities may also restrict or place moratoriums on the availability of utilities, such as water and sewertaps. In some areas, municipalities may enact growth control initiatives, which will restrict the number of building permits available in a given year. In addition,our Real Estate segment may be required to apply for additional approvals or modify its existing approvals because of changes in local circumstances or applicablelaw. If municipalities in which our Real Estate segment operates take actions like these, it could have an adverse effect on Real Estate operations by causingdelays, increasing their costs or limiting their ability to operate in those municipalities. Further, our Real Estate segment may experience delays and increasedexpenses as a result of legal challenges to our proposed communities, whether brought by governmental authorities or private parties.Home FashionWPH has had a history of sales declines, net losses and negative cash flow from operations. In 2011 WPH generated positive cash flows from operations forthe first time since emerging from bankruptcy in 2005 and continued to generate positive cash flows from operations in three of the subsequent four years after2011. However, WPH can provide no assurance that it will generate income or provide positive cash flows from operations.WPH has had a history of significant net losses. In addition, our Home Fashion segment did not generate positive cash flows from its operations until 2011since emerging from bankruptcy in 2005. Our Home Fashion segment generated positive cash flow from operating activities in three of the four years subsequentto 2011 primarily due to changes in working capital. In addition, the sale of a joint venture contributed to the positive cash flows from operating activities in 2013.We can provide no assurance that our Home Fashion segment will generate income or generate positive cash flows from operating activities. Unless WPH isable to generate positive cash flows from its operations, WPH will require external financing to operate its business.In light of the recent operating performance and challenging industry conditions, our Home Fashion segment is considering various strategic alternativeswhich may include, without limitation, joint ventures, other forms of strategic alliances and/or a sale or divestiture of all or a significant portion of its assets.In light of WPH's recent operating performance and challenging industry conditions, we are considering various strategic alternatives which may include,without limitation, joint ventures, other forms of strategic alliances, and/or a sale or divestiture of all or a significant portion of WPH's assets. We cannot determinewhether any of these transactions will be consummated or, if so, upon what terms. Any sale of WPH may result in consideration that is materially less than thecarrying value of our investment in WPH. 89WPH has a limited operating history and acquired its business from the former owners through bankruptcy proceedings in 2005. Certain of the issues thatcontributed to WestPoint Stevens filing for bankruptcy continue to affect WPH's business operations and financial condition.WPH commenced operations in August 2005 concurrent with the acquisition of assets from WestPoint Stevens as part of its bankruptcy reorganization.Certain of the issues that contributed to WestPoint Stevens' filing for bankruptcy, such as intense industry competition, the inability to produce goods at a costcompetitive with overseas suppliers, the increasing prevalence of direct sourcing by principal customers and continued incurrence of overhead costs associatedwith an enterprise larger than the current business can profitably support, continue to exist and may continue to adversely affect our Home Fashion operations.The home fashion industry is cyclical, seasonal and highly correlated to home sales.The home fashion industry is both cyclical and seasonal, which affects WPH's performance. Traditionally, the home fashion industry is seasonal, with a peaksales season in the fall. In response to this seasonality, WPH increases its inventory levels during the first six months of the year to meet customer demands for thepeak fall season. In addition, the home fashion industry is traditionally cyclical and WPH's performance may be negatively affected by downturns in consumerspending. The home fashion industry is also highly correlated to home sales, and WPH's performance has been negatively affected by the downturn in this market.The loss of any of WPH's large customers could have an adverse effect on its business.During 2015, WPH had four customers that accounted for approximately 64% of its net sales. The loss of any of WPH's largest accounts, or a material portionof sales to those accounts, could have an adverse effect upon WPH's business, which could be material.A substantial portion of WPH's sales are derived from licensed designer brands. The loss of a significant license could have an adverse effect on its business.A substantial portion of WPH's sales is derived from licensed designer brands. Some of the licenses are automatically renewable for additional periods,provided that sales thresholds set forth in the license agreements are met. Under certain circumstances, these licenses can be terminated without WPH's consent dueto circumstances beyond WPH's control. The license agreements for these designer brands generally are for a term of two or three years. The loss of a significantlicense could have an adverse effect upon WPH's business, which effect could be material to its business.During 2010 and 2011 there was a global shortage of the principal raw materials WPH uses to manufacture its products, particularly cotton and cotton yarnthat forced WPH to pay significantly more for those materials. Any similar or future shortages would increase WPH's cost of goods and cause WPH toincrease its prices, which could have an adverse effect on WPH's operations, and, to the extent WPH is not able to pass the cost increases to its customers, themargins on WPH products will be decreased.Any shortage in the raw materials WPH uses to manufacture its products could adversely affect WPH's operations. The principal raw materials that WPH usesin the manufacture of its products are cotton of various grades and staple lengths and polyester and nylon in staple and filament form. During 2010 and 2011, therewas a global shortage of cotton and cotton yarn that forced WPH to pay significantly more for those materials. The shortages experienced resulted in theunwillingness of many producers to enter into long-term supply agreements, which resulted in increased price volatility. These shortages further resulted inincreased prices for other raw materials, including polyester and nylon. WPH has not historically been able to pass all these cost increases to its customers throughincreased prices and, when that is the case, the margins on WPH's products have decreased. To the extent WPH increases the prices of its products to take intoaccount any increased costs, WPH's sales may be negatively affected. Any shortage event may also impact the availability of raw materials, thereby adverselyimpacting the timing and volume of WPH net sales.The home fashion industry is very competitive and WPH's success depends on its ability to compete effectively in its market.The home fashion industry is highly competitive. WPH's future success will, to a large extent, depend on its ability to be a low-cost producer and to remaincompetitive. WPH competes with both foreign and domestic companies on the basis of price, quality and customer service. WPH's future success depends on itsability to remain competitive in the areas of marketing, product development, price, quality, brand names, manufacturing capabilities, distribution and orderprocessing. Any failure to compete effectively could adversely affect WPH's sales and, accordingly, our Home Fashion operations. Additionally, the easing oftrade restrictions over time has led to growing competition from low-priced products imported from Asia and Latin America. The lifting of import quotas in 2005has accelerated the loss of WPH's market share.90WPH has a significant percentage of its products that are made overseas. There is no assurance that WPH will be successful in obtaining goods of sufficientquality on a timely basis and on advantageous terms. WPH is subject to additional risks relating to doing business overseas.WPH has as significant percentage of its products that are made overseas and faces additional risks associated with these efforts. WPH currently has amanufacturing facility that it owns through a subsidiary in Bahrain. WPH also has a sourcing office in China and purchases from manufacturers in many foreigncountries. WPH has limited experience in overseas procurement and, accordingly, WPH cannot assure you that it will be successful in obtaining goods of sufficientquality on a timely basis and on advantageous terms.Recent civil unrest in Bahrain has not affected WPH's operations in that country to date, but we cannot assure you that future events in Bahrain, or the otherforeign countries in which WPH has operations, will not have a material adverse effect on WPH's business, foreign assets or the cost or availability of its goods.There has been consolidation of retailers of home fashion products that may reduce WPH's profitability.The consolidation of retailers of consumer goods has resulted in certain retailers having a greater ability to secure more favorable terms from vendors.Retailers' pricing leverage has resulted in a decline in WPH's unit pricing and margins and resulted in a shift in product mix to more private label programs. IfWPH is unable to diminish the decline in its pricing and margins, WPH may not be able to achieve profitability.The retail industry in the United States is highly competitive and subject to the various economic cycles of consumer demand. WPH is subject to the retailers'demand for products as manifest by underlying consumer spending. WPH may incur adverse financial consequences if WPH's retail customers experienceadverse financial results.Retailers of consumer goods are dependent upon consumer spending. In turn, consumer spending is broadly a function of the overall economic environment.Given the weaknesses in the overall economy, and in the home sales market specifically, the level of consumer retail spending for home textile products is likely todecline, which would have an adverse impact on WPH's business and financial results. In the current unsettled economic environment, the indicators are thatconsumers are not purchasing discretionary goods to the extent they have in the past. To the extent that retailers of consumer goods are faced with financialdifficulties due to weakened consumer demand, depending upon the amount of business that WPH does with any such customer, WPH's financial results may beadversely affected. This adverse impact could arise out of the potential recoverability of a receivable from a financially impaired retailer or from a customer doingless business with WPH. WPH believes it maintains adequate receivable reserves for specifically known events and an overall general provision for unknowncircumstances. However, depending upon the magnitude of any future unknown event, these reserves may not be sufficient.WPH is subject to various U.S. federal, state and local and foreign laws, rules and regulations. If WPH does not comply with these laws, rules and regulations,it may incur significant costs in the future to become compliant.WPH is subject to various U.S. federal, state and local and foreign laws, rules and regulations governing, among other things, the discharge, storage,handling, usage and disposal of a variety of hazardous and non-hazardous substances and wastes used in, or resulting from, WPH's operations, including potentialremediation obligations under those laws and regulations. WPH's operations are also governed by U.S. federal, state, local and foreign laws, rules and regulationsrelating to employee safety and health which, among other things, establish exposure limitations for cotton dust, formaldehyde, asbestos and noise, and whichregulate chemical, physical and ergonomic hazards in the workplace. Although WPH does not expect that compliance with any of these laws, rules and regulationswill materially adversely affect our Home Fashion operations, WPH cannot assure you that regulatory requirements will not become more stringent in the future orthat WPH will not incur significant costs to comply with those requirements.Holding CompanyWe may not be able to identify suitable investments, and our investments may not result in favorable returns or may result in losses.Our partnership agreement allows us to take advantage of investment opportunities we believe exist outside of our operating businesses. The equity securitiesin which we may invest may include common stock, preferred stock and securities convertible into common stock, as well as warrants to purchase these securities.The debt securities in which we may invest may include bonds, debentures, notes or non-rated mortgage-related securities, municipal obligations, bank debt andmezzanine loans. Certain of these securities may include lower rated or non-rated securities, which may provide the potential for higher yields and therefore mayentail higher risk and may include the securities of bankrupt or distressed companies. In addition, we may engage in various investment techniques, includingderivatives, options and futures transactions, foreign currency transactions, “short” sales and leveraging for either hedging or other purposes. We may concentrateour activities by owning91significant or controlling interest in certain investments. We may not be successful in finding suitable opportunities to invest our cash and our strategy of investingin undervalued assets may expose us to numerous risks.We have entered into a covered affiliate agreement, pursuant to which we (and certain of our subsidiaries) have agreed, in general, to be bound by certainrestrictions on our investments in any assets that the General Partners deem suitable for the Investment Funds, other than government and agency bonds, cashequivalents and investments in non-public companies. We and our subsidiaries, either alone or acting together with a group, will not be restricted from (i) acquiringall or any portion of the assets of any public company in connection with a negotiated transaction or series of related negotiated transactions or (ii) engaging in anegotiated merger transaction with a public company and, pursuant thereto, conducting and completing a tender offer for securities of the company.We have made significant investments in the Investment Funds and negative performance of the Investment Funds may result in a significant decline in thevalue of our investments.As of December 31, 2015 , we had interests aggregating approximately $3.4 billion in the Investment Funds. If the Investment Funds experience negativeperformance, the value of these investments will be negatively impacted, which could have a material adverse effect on our operating results, cash flows andfinancial position.Our investments may be subject to significant uncertainties.Our investments may not be successful for many reasons, including, but not limited to:•fluctuations of interest rates;•lack of control in minority investments;•worsening of general economic and market conditions;•lack of diversification;•the success of the Investment Funds' activist strategies;•fluctuations of U.S. dollar exchange rates; and•adverse legal and regulatory developments that may affect particular businesses.Item 1B. Unresolved Staff Comments.None.Item 2. Properties.AutomotiveFederal-MogulFederal-Mogul's world headquarters is located in Southfield, Michigan, which is a leased facility. Federal-Mogul's operations include 227 manufacturingfacilities, technical centers, distribution and warehouse centers, and sales and administration office facilities worldwide at December 31, 2015 . Approximately49% of the facilities are leased; the majority of which are distribution centers, and sales and administration offices. Federal-Mogul owns the remainder of thefacilities.The facilities range in size from approximately 100 square feet to 700 thousand square feet. Federal-Mogul believes that substantially all of its facilities are ingood condition and that it has sufficient capacity to meet its current and expected manufacturing and distribution needs.IEH AutoIEH Auto leases its corporate headquarters located in Kennesaw, Georgia, which is approximately 17,000 square feet. IEH Auto operates 264 store locationsand 34 regional warehouse locations throughout the United States. IEH Auto leases all of its facilities with the exception of one store located in Oakwood,Virginia.Warehouse locations range in size from approximately 20,000 square feet to 150,000 square feet. Store locations range from approximately 2,500 square feetto 40,000 square feet.Pep Boys (effective February 3, 2016 )Pep Boys owns its five-story, approximately 300,000 square foot corporate headquarters in Philadelphia, Pennsylvania. Pep Boys also owns approximately4,000 square feet of space in each of Melrose Park, Illinois and Bayamon, Puerto Rico. Pep Boys leases an administrative regional office of approximately 3,500square feet in Los Angeles, California.92Of the 804 store locations operated by Pep Boys, 224 are owned and 580 are leased.The following table sets forth certain information regarding the owned and leased warehouse space utilized by Pep Boys to replenish its store locations:Warehouse Locations ProductsWarehoused ApproximateSquareFootage OwnedorLeased StoresServiced States ServicedSan Bernardino, CA All 600,000 Leased 193 AZ, CA, NV, UT, WAMcDonough, GA All 392,000 Owned 230 AL, FL, GA, LA, NC, PR, SC, TNMesquite, TX All 244,000 Owned 79 AR, CO, LA, MO, NM, OK, TXPlainfield, IN All 403,000 Owned 79 IL, IN, KY, MI, MN, OH, PAChester, NY All 402,000 Owned 196 CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VAPhiladelphia, PA Tires 54,000 Leased 61 DE, NJ, PA, VA, MDTotal 2,095,000 EnergyThe following table contains certain information regarding CVR's principal properties:Location Acres Own/Lease UseCoffeyville, KS 440 Own CVR Refining: oil refinery and office buildings CVR Partners:fertilizer plantWynnewood, OK 400 Own Oil refinery, office buildings, refined oil storageMontgomery County, KS (Coffeyville Station) 20 Own Crude oil storageMontgomery County, KS (Broome Station) 20 Own Crude oil storageCowley County, KS (Hooser Station) 80 Own Crude oil storageCushing, OK 138 Own Crude oil storageCVR also leases property for its executive office located at 2277 Plaza Drive in Sugar Land, Texas. Additionally, other corporate office space is leased inKansas City, Kansas.As of December 31, 2015 , CVR's petroleum business owned crude oil storage capacity of approximately (i) 1.5 million barrels that supported the gatheringsystem and the Coffeyville refinery, (ii) 0.9 million barrels at the Wynnewood refinery and (iii) 1.5 million barrels in Cushing, Oklahoma. The petroleum businessleased additional crude oil storage capacity of approximately (iv) 2.8 million barrels in Cushing, (v) 0.2 million barrels in Duncan, Oklahoma and (vi) 0.1 millionbarrels at the Wynnewood refinery. In addition to crude oil storage, the petroleum business owned over 4.5 million barrels of combined refined products andfeedstocks storage capacity.MetalsPSC Metals is headquartered in Mayfield Heights, Ohio, with additional corporate administrative offices located at its facility in Nashville, Tennessee. As ofDecember 31, 2015 , PSC Metals operated 32 recycling yards, four secondary plate storage and distribution centers, two secondary pipe storage and distributioncenter, and one auto parts recycling warehouse. PSC Metals' facilities are strategically located in high-volume scrap metal markets throughout the Midwestern andSoutheastern United States, placing PSC Metals in proximity to both suppliers and consumers of scrap metals. PSC Metals owns one recycling yard in Arkansas,two in Georgia, one in Illinois, five in Missouri, nine in Ohio, two in Pennsylvania, and six in Tennessee. PSC Metals leases two recycling yards in Missouri,three in Ohio, and one in Tennessee, and is a service provider at a location in Pennsylvania. PSC Metals owns plate storage facilities in Indiana and Michigan, andalso leases a plate storage facility in Indiana. PSC Metals leases one auto recycling warehouse in Ohio. PSC Metals owns secondary steel pipe products storagecenters in Ontario, Canada and Kentucky.PSC Metals' corporate headquarters is leased, as is an administrative office located in Stoney Creek, Ontario, Canada.RailcarARI's and ARL's headquarters are located in St. Charles, Missouri. ARI and ARL lease their facilities pursuant to lease agreements that expire December 31,2021. ARI owns manufacturing facilities in Paragould Arkansas; Marmaduke, Arkansas; Jackson, Missouri; Kennett, Missouri; Longview, Texas; and leases onemanufacturing facility in St. Charles, Missouri. As of93December 31, 2015 , ARI operates seven railcar services facilities and thirteen mobile repair and mini repair shop facilities where it provides railcar repair andfield services. Five of the railcar services facilities are owned and the remaining two are leased.In addition to the corporate headquarters, ARL maintains four regional sales offices located through the United States and Canada, all of which are leased.GamingTropicana's corporate headquarters is located in Las Vegas, Nevada, which is leased office space. Tropicana currently owns and operates a diversified, multi-jurisdictional collection of casino gaming properties. The eight properties operated by Tropicana feature approximately 392,000 square feet of gaming space and5,500 hotel rooms. The eight casino facilities Tropicana currently operates include two casinos in Nevada and one in each of Missouri, Mississippi, Indiana,Louisiana, New Jersey and Aruba.MiningFerrous Resources’ corporate headquarters is located in Belo Horizonte, Brazil, which is a leased office space. Since its formation, Ferrous Resources hasacquired six iron mineral resource properties in Brazil: Viga, Esperança (Emesa), Serrinha, Santanense, Viga Norte and Jacuípe. All six iron mineral resourceproperties are located in the Brazilian states of Minas Gerais and Bahia.Food PackagingViskase's headquarters is located in Darien, Illinois. In addition, Viskase operates nine manufacturing facilities, six distribution centers and three servicecenters throughout North America, Europe, South America and Asia.Real EstateOur Real Estate segment is headquartered in New York, New York. As of December 31, 2015 , our Real Estate segment owned 15 retail, office and industrialproperties, the majority of which are net leased to single corporate tenants. These primarily consist of fee and leasehold interests in 12 states. In terms of squarefootage, approximately 80% of these properties are net-leased, 10% are operating properties and 10% are vacant as of December 31, 2015 .Our Real Estate segment's residential development properties consist of its New Seabury Club in Cape Cod, Massachusetts and the waterfront communities ofGrand Harbor in Vero Beach, Florida. These communities include properties in various stages of development. Our Real Estate segment also owns 400 acres ofdevelopable land adjacent to Grand Harbor.At its New Seabury Club, our Real Estate segment operates a golf club, with two championship golf courses, the Popponesset Inn, a private beach club, afitness center and a tennis facility. Our Real Estate segment also owns two golf courses, a tennis complex, fitness center, beach club and clubhouses locatedadjacent to the Intercoastal Waterway in Vero Beach, Florida.In addition, our Real Estate segment owns an unfinished development property and a partially developed casino, located on approximately 23 acres in LasVegas, Nevada, which is located in other assets in the consolidated balance sheets as held for sale as of December 31, 2015 .Home FashionWPH is headquartered in New York, New York. WPH owns and operates a manufacturing and distribution facility in Chipley, Florida. Through its whollyowned subsidiaries WPH owns and operates a manufacturing facility in Bahrain. WPH owns office and store space in Valley, Alabama and Lumberton, NorthCarolina where it operates two outlet stores, and leases store space for stores in Chipley and Pensacola, Florida, Boaz, Alabama, Savannah, Dalton and Lake Park,Georgia and leases various additional office spaceInvestment and Holding CompanyIcahn Capital LP, Icahn Enterprises and Icahn Enterprises Holdings are headquartered in New York, New York.Item 3. Legal Proceedings.We are, and will continue to be, subject to litigation from time to time in the ordinary course of our business. We also incorporate by reference into this Part I,Item 3 of this Report, the information regarding the lawsuits and proceedings described and referenced in Note 17 , " Commitments and Contingencies ," to theconsolidated financial statements as set forth in Part II, Item 8 of this Report.94Item 4. Mine Safety Disclosures.Not applicable.95PART IIItem 5. Market for Registrant's Common Equity, Related Security Holder Matters and Issuer Purchases of Equity Securities.Market InformationIcahn Enterprises' depositary units are traded on the NASDAQ Global Select Market ("NASDAQ") under the symbol “IEP.” The range of high and low salesprices for the depositary units on the NASDAQ Composite Tape for each quarter during 2015 and 2014 are as follows:2015 High LowFirst Quarter $100.83 $88.05Second Quarter 93.12 86.05Third Quarter 86.72 65.96Fourth Quarter 80.92 61.30 2014 High LowFirst Quarter $117.80 $99.94Second Quarter 104.06 90.76Third Quarter 113.44 99.58Fourth Quarter 107.93 90.77Holders of RecordAs of December 31, 2015 , there were approximately 2,340 record holders of Icahn Enterprises' depositary units including multiple beneficial holders atdepositories, banks and brokers listed as a single record holder in the street name of each respective depository, bank or broker.There were no repurchases of Icahn Enterprises' depositary units during 2015 or 2014.DistributionsOn March 3, 2014, the board of directors of our general partner announced an increase in our annualized distribution from $5.00 per depositary unit to $6.00per depositary unit.On February 23, 2016 , the board of directors of the general partner of Icahn Enterprises declared a quarterly distribution in the amount of $1.50 perdepositary unit, which will be paid on or about April 12, 2016 to depositary unitholders of record at the close of business on March 7, 2016 . Depositaryunitholders will have until March, 31 2016 to make an election to receive either cash or additional depositary units; if a holder does not make an election, it willautomatically be deemed to have elected to receive the dividend in cash. Depositary unitholders who elect to receive additional depositary units will receive unitsvalued at the volume weighted average trading price of the units on NASDAQ during the 5 consecutive trading days ending April 7, 2016 . No fractionaldepositary units will be issued pursuant to the distribution payment. Icahn Enterprises will make a cash payment in lieu of issuing fractional depositary units to anyholders electing to receive depositary units. Any holders that would only be eligible to receive a fraction of a depositary unit based on the above calculation willreceive a cash payment.During each of 2015 and 2014, we declared four quarterly distributions aggregating $6.00 per depositary unit. Depositary unitholders were given the option tomake 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 haveelected to receive the distributions in cash.During 2015 and 2014, Mr. Icahn and his affiliates elected to receive a majority of their proportionate share of these distributions in depositary units. Mr.Icahn and his affiliates owned approximately 89.0% of Icahn Enterprises' outstanding depositary units as of December 31, 2015 . Mr. Icahn and his affiliates haveindicated that it is their present intention to elect to continue to receive the increase in Icahn Enterprises’ cash distribution in additional depositary units for theforeseeable future.The declaration and payment of distributions is reviewed quarterly by Icahn Enterprises GP's board of directors based upon a review of our balance sheet andcash flow, the ratio of current assets to current liabilities, our expected capital and liquidity requirements, the provisions of our partnership agreement andprovisions in our financing arrangements governing distributions, and keeping in mind that limited partners subject to U.S. federal income tax have recognizedincome on our earnings even if they do not receive distributions that could be used to satisfy any resulting tax obligations. The payment of future distributions willbe determined by the board of directors quarterly, based upon the factors described above and other96factors that it deems relevant at the time that declaration of a distribution is considered. Payments of distributions are subject to certain restrictions, includingcertain restrictions on our subsidiaries which limit their ability to distribute dividends to us. There can be no assurance as to whether or in what amounts any futuredistributions might be paid.As of February 29, 2016 , there were 131,481,059 depositary units outstanding. Each depositary unitholder will be taxed on the unitholder's allocable share ofIcahn Enterprises' taxable income.Item 6. Selected Financial Data.The following tables contain our selected historical consolidated financial data, which should be read in conjunction with our consolidated financialstatements and the related notes thereto, and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in this AnnualReport on Form 10-K for the year ended December 31, 2015 (this "Report"). The selected financial data as of December 31, 2015 and 2014 and for the years endedDecember 31, 2015 , 2014 and 2013 have been derived from our audited consolidated financial statements at those dates and for those periods, contained elsewherein this Report. The historical selected financial data as of December 31, 2013, 2012 and 2011 and for the years ended December 31, 2012 and 2011 have beenderived from our audited consolidated financial statements at those dates and for those periods, not contained in this Report, as adjusted retrospectively for ouracquisition of a controlling interest in ARL (as defined elsewhere in this Report), which was accounted for as an entity under common control and reported in ourconsolidated results on an as-if-pooling basis.In 2012, we acquired a controlling interest in CVR Energy Inc., which has been consolidated as of May 4, 2012. This significant business acquisition affectsthe comparability of our selected financial data presented below. Icahn Enterprises Icahn Enterprises Holdings Year Ended December 31, Year Ended December 31, 2015 2014 2013 2012 2011 2015 2014 2013 2012 2011 (in millions, except per unit data) (in millions)Statement of Operations Data: Net sales$14,604 $18,072 $17,785 $14,574 $9,127 $14,604 $18,072 $17,785 $14,574 $9,127Other revenues from operations1,386 1,250 988 951 933 1,386 1,250 988 951 933Net (loss) gain from investmentactivities(987) (564) 1,694 343 1,905 (987) (564) 1,694 343 1,905 Net (loss) income(2,127) (529) 2,444 762 1,800 (2,126) (528) 2,444 763 1,801Less: Net loss (income) attributableto non-controlling interests933 156 (1,419) (366) (1,050) 933 156 (1,419) (366) (1,050)Net (loss) income attributable toIcahn Enterprises/IcahnEnterprises Holdings$(1,194) $(373) $1,025 $396 $750 $(1,193) $(372) $1,025 $397 $751 Net (loss) income attributable toIcahn Enterprises/IcahnEnterprises Holdings allocable to: Limited partners$(1,170) $(366) $1,005 $379 $735 $(1,181) $(368) $1,015 $384 $743General partner(24) (7) 20 17 15 (12) (4) 10 13 8 $(1,194) $(373) $1,025 $396 $750 $(1,193) $(372) $1,025 $397 $751 Basic (loss) income per LP unit$(9.29) $(3.08) $9.14 $3.72 $8.35 Basic weighted average LP unitsoutstanding126 119 110 102 88 Diluted (loss) income per LP unit$(9.29) $(3.08) $9.07 $3.72 $8.15 Diluted weighted average LP unitsoutstanding126 119 111 102 93 97 Icahn Enterprises Icahn Enterprises Holdings Year Ended December 31, Year Ended December 31, 2015 2014 2013 2012 2011 2015 2014 2013 2012 2011 (in millions, except per unit data) (in millions)Other Financial Data: EBITDA attributable to IcahnEnterprises/Icahn EnterprisesHoldings (1)$197 $705 $1,804 $1,158 $1,459 $197 $705 $1,804 $1,158 $1,459Adjusted EBITDA attributable toIcahn Enterprises/IcahnEnterprises Holdings (1)929 1,018 1,899 1,546 1,541 929 1,018 1,899 1,546 1,541Cash distributions declared per LPunit6.00 6.00 4.50 0.40 0.55 Icahn Enterprises Icahn Enterprises Holdings December 31, December 31, 2015 2014 2013 2012 2011 2015 2014 2013 2012 2011 (in millions) (in millions)Balance Sheet Data: Cash and cash equivalents$2,078 $2,908 $3,257 $3,102 $2,328 $2,078 $2,908 $3,257 $3,102 $2,328Investments15,351 14,480 12,261 5,491 8,938 15,351 14,480 12,261 5,491 8,938Property, plant and equipment, net9,535 8,812 7,934 7,518 4,514 9,535 8,812 7,934 7,518 4,514Total assets36,442 35,790 31,745 25,932 24,368 36,466 35,813 31,761 25,946 24,379Deferred tax liability1,197 1,255 1,394 1,335 556 1,197 1,255 1,394 1,335 556Due to brokers7,317 5,197 2,203 — — 7,317 5,197 2,203 — —Post-employment benefit liability1,224 1,391 1,111 1,488 1,340 1,224 1,391 1,111 1,488 1,340Debt12,633 11,588 9,295 9,873 7,831 12,633 11,588 9,289 9,865 7,821Equity attributable to IcahnEnterprises/Icahn EnterprisesHoldings3,987 5,443 6,092 4,669 3,755 4,011 5,466 6,114 4,691 3,776(1) EBITDA represents earnings before interest expense, net, income tax (benefit) expense and depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding the effects ofimpairment, restructuring costs, certain pension plan expenses, OPEB curtailment gains, divestitures, losses on extinguishment of debt, FIFO impacts, major scheduled turnaround expense,unrealized gains/losses on certain derivative contracts, certain share-based compensation expenses related to a certain proxy matter, and certain other charges. We present EBITDA and AdjustedEBITDA on a consolidated basis, net of the effect of non-controlling interests. We conduct substantially all of our operations through subsidiaries. The operating results of our subsidiaries maynot be sufficient to make distributions to us. In addition, our subsidiaries are not obligated to make funds available to us for payment of our indebtedness, payment of distributions on ourdepositary units or otherwise, and distributions and intercompany transfers from our subsidiaries to us may be restricted by applicable law or covenants contained in debt agreements and otheragreements to which these subsidiaries currently may be subject or into which they may enter into in the future. The terms of any borrowings of our subsidiaries or other entities in which weown equity may restrict dividends, distributions or loans to us.We believe that providing EBITDA and Adjusted EBITDA to investors has economic substance as these measures provide important supplemental information of our performance to investorsand permits investors and management to evaluate the core operating performance of our business. Additionally, we believe this information is frequently used by securities analysts, investorsand other interested parties in the evaluation of companies that have issued debt. Management uses, and believes that investors benefit from referring to these non-GAAP financial measures inassessing our operating results, as well as in planning, forecasting and analyzing future periods. Adjusting earnings for these charges allows investors to evaluate our performance from period toperiod, as well as our peers, without the effects of certain items that may vary depending on accounting methods and the book value of assets. Additionally, EBITDA and Adjusted EBITDApresent meaningful measures of corporate performance exclusive of our capital structure and the method by which assets were acquired and financed.EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under generallyaccepted accounting principles in the United States, or U.S. GAAP. For example, EBITDA and Adjusted EBITDA:• do not reflect our cash expenditures, or future requirements for capital expenditures, or contractual commitments;• do not reflect changes in, or cash requirements for, our working capital needs; and• do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments on our debt.Although depreciation and amortization are non-cash charges, the assets being depreciated or amortized often will have to be replaced in the future, and EBITDA and Adjusted EBITDA do notreflect any cash requirements for such replacements. Other companies in the industries in which we operate may98calculate EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures. In addition, EBITDA and Adjusted EBITDA do not reflect the impact ofearnings or charges resulting from matters we consider not to be indicative of our ongoing operations.EBITDA and Adjusted EBITDA are not measurements of our financial performance under U.S. GAAP and should not be considered as alternatives to net income or any other performancemeasures derived in accordance with U.S. GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. Given these limitations, we rely primarily on our U.S.GAAP results and use EBITDA and Adjusted EBITDA only as a supplemental measure of our financial performance. The following table reconciles, on a basis attributable to IcahnEnterprises/Icahn Enterprises Holdings, net income attributable to Icahn Enterprises/Icahn Enterprises Holdings, to EBITDA and EBITDA to Adjusted EBITDA for the periods indicated. Icahn Enterprises Icahn Enterprises Holdings Year Ended December 31, Year Ended December 31, 2015 2014 2013 2012 2011 2015 2014 2013 2012 2011 (in millions) (in millions)Attributable to IcahnEnterprises/Icahn EnterprisesHoldings: Net (loss) income$(1,194) $(373) $1,025 $396 $750 $(1,193) $(372) $1,025 $397 $751Interest expense, net762 614 464 456 373 761 613 464 455 372Income tax expense (benefit)14 (109) (170) (128) 27 14 (109) (170) (128) 27Depreciation, depletion andamortization615 573 485 434 309 615 573 485 434 309EBITDA attributable to IcahnEnterprises/Icahn EnterprisesHoldings$197 $705 $1,804 $1,158 $1,459 $197 $705 $1,804 $1,158 $1,459Impairment$544 $72 $14 $106 $58 $544 $72 $14 $106 $58Restructuring80 67 41 25 9 80 67 41 25 9Non-service cost of U.S. basedpension1 (6) 4 29 18 1 (6) 4 29 18FIFO impact (favorable)unfavorable35 94 (15) 58 — 35 94 (15) 58 —Unrealized (gain)/loss on certainderivatives2 (41) (43) 57 — 2 (41) (43) 57 —OPEB curtailment gains— — (15) (40) (1) — — (15) (40) (1)Major scheduled turnaroundexpense62 5 — 88 — 62 5 — 88 —Certain share-based compensationexpense11 8 20 27 1 11 8 20 27 1Losses on divestitures— — 46 — — — — 46 — —Net loss on extinguishment of debt1 152 — 7 — 1 152 — 7 —Other(4) (38) 43 31 (3) (4) (38) 43 31 (3)Adjusted EBITDA attributable toIcahn Enterprises/IcahnEnterprises Holdings$929 $1,018 $1,899 $1,546 $1,541 $929 $1,018 $1,899 $1,546 $1,54199Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.The following discussion is intended to assist you in understanding our present business and the results of operations together with our present financialcondition. This section should be read in conjunction with our consolidated financial statements and the accompanying notes contained in this Annual Report onForm 10-K for the year ended December 31, 2015 (this "Report").OverviewIcahn Enterprises L.P. (“Icahn Enterprises”) is a master limited partnership formed in Delaware on February 17, 1987. Icahn Enterprises Holdings L.P.(“Icahn Enterprises Holdings”) is a limited partnership formed in Delaware on February 17, 1987. References to "we," "our" or "us" herein include both IcahnEnterprises and Icahn Enterprises Holdings and their subsidiaries, unless the context otherwise requires.Icahn Enterprises owns a 99% limited partner interest in Icahn Enterprises Holdings. Icahn Enterprises G.P. Inc. (“Icahn Enterprises GP”), which is ownedand controlled by Mr. Carl C. Icahn, owns a 1% general partner interest in each of Icahn Enterprises and Icahn Enterprises Holdings. Icahn Enterprises Holdingsand its subsidiaries own substantially all of our assets and liabilities and conduct substantially all of our operations. Therefore, the financial results of IcahnEnterprises and Icahn Enterprises Holdings are substantially the same, with differences relating primarily to debt, as discussed further in Note 10 , " Debt ," to theconsolidated financial statements, and to the allocation of the general partner interest, which is reflected as an aggregate 1.99% general partner interest in thefinancial statements of Icahn Enterprises. In addition to the above, Mr. Icahn and his affiliates owned 117,033,818 , or approximately 89.0% , of Icahn Enterprises'outstanding depositary units as of December 31, 2015 .We are a diversified holding company owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Automotive,Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate and Home Fashion. We also report the results of our Holding Company, which includes theresults of certain subsidiaries of Icahn Enterprises and Icahn Enterprises Holdings (unless otherwise noted), and investment activity and expenses associated withthe Holding Company.On February 28, 2016, Icahn Enterprises issued a proposal to the board of directors of Federal-Mogul to purchase the shares of Federal-Mogul common stocknot owned by us in a merger transaction pursuant to which Federal-Mogul shareholders would receive $7.00 per share in cash for their Federal-Mogul shares.100Results of OperationsConsolidated Financial ResultsOverviewOur operating businesses are managed on a decentralized basis. Due to the structure of our business, we discuss the results of operations below by individualreportable segments. Refer to Note 3 , “ Operating Units ,” to the consolidated financial statements for a description of each of our reporting segments and Note 13, " Segment and Geographic Reporting ," for a reconciliation of each of our reporting segment's results of operations to our consolidated results.The following table summarizes total revenues, net (loss) income and net (loss) income attributable to Icahn Enterprises for each of our reporting segmentsand our Holding Company for the years ended December 31, 2015 , 2014 and 2013. Revenues Net (Loss) Income Net (Loss) Income Attributable to IcahnEnterprises Year Ended December 31, Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 2015 2014 2013 (in millions)Investment$(865) $(218) $2,031 $(1,665) $(684) $1,902 $(760) $(305) $812Automotive7,853 7,324 6,876 (352) (90) 263 (299) (87) 250Energy5,442 9,292 9,063 7 168 479 25 95 289Metals365 711 929 (51) (25) (28) (51) (25) (28)Railcar948 809 744 213 188 139 137 122 30Gaming811 849 571 38 269 19 26 185 13Mining (1)28 — — (195) — — (150) — —Food Packaging337 346 346 (3) 9 43 (3) 6 32Real Estate131 101 85 61 22 17 61 22 17Home Fashion194 181 187 (4) 2 (16) (4) 2 (16)Holding Company28 (238) (150) (176) (388) (374) (176) (388) (374) $15,272 $19,157 $20,682 $(2,127) $(529) $2,444 $(1,194) $(373) $1,025 (1) We consolidated Ferrous Resources effective June 1, 2015.Icahn Enterprises HoldingsDue to the structure of our business, the consolidated results of operations for Icahn Enterprises and Icahn Enterprises Holdings are substantially the same.Differences primarily relate to non-cash portions of interest expense, and are only reflected in the results of operations for our Holding Company. The followingtable summarizes total revenues, net (loss) income and net (loss) income attributable to Icahn Enterprises Holdings for our Holding Company and the consolidatedtotals with respect to Icahn Enterprises Holdings for the years ended December 31, 2015 , 2014 and 2013. Revenues Net (Loss) Income Net (Loss) Income Attributable to IcahnEnterprises Holdings Year Ended December 31, Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 2015 2014 2013 (in millions)Holding Company$28 $(238) $(150) $(175) $(387) $(374) $(175) $(387) $(374)Consolidated$15,272 $19,157 $20,682 $(2,126) $(528) $2,444 $(1,193) $(372) $1,025101InvestmentOur Investment segment is comprised of various private investment funds, including Icahn Partners L.P. ("Icahn Partners"), Icahn Partners Master Fund LP,Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP (collectively, the "Master Funds", and together with Icahn Partners, the "InvestmentFunds"), through which we invest our proprietary capital. Effective January 1, 2014, Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP weremerged with and into Icahn Partners. We and certain of Mr. Icahn's wholly owned affiliates are the sole investors in the Investment Funds. Icahn Onshore LP andIcahn Offshore LP (together, the "General Partners") act as the general partner of Icahn Partners and the Master Funds, respectively. The General Partners provideinvestment advisory and certain administrative and back office services to the Investment Funds but do not provide such services to any other entities, individualsor accounts. Interests in the Investment Funds are not offered to outside investors.Mr. Icahn, along with his affiliates (excluding Icahn Enterprises and Icahn Enterprises Holdings), makes investments in the Investment Funds. As ofDecember 31, 2015 and 2014, the total fair market value of investments in the Investment Funds made by Mr. Icahn and his affiliates was approximately $4.1billion and $4.8 billion , respectively.Our Interests in the Investment FundsAs of December 31, 2015 and 2014, we had investments with a fair market value of approximately $3.4 billion and $4.3 billion , respectively, in theInvestment Funds.Our share of the Investment Funds' net (losses) profits through our interests in the Investment Funds was $(760) million , $(305) million, and $812 million forthe years ended December 31, 2015 , 2014 and 2013, respectively.ReturnsThe following table sets forth performance information for the Investment Funds for the comparative periods presented. These returns represent a weighted-average composite of the average returns, net of expenses for the Investment Funds. Returns Year Ended December 31, 2015 2014 2013Investment Funds-18.0 % -7.4 % 30.8%Performance AttributionThe following table sets forth the performance attribution for the Investment Funds for the comparative periods presented. Performance Attribution Year Ended December 31, 2015 2014 2013Long positions-18.1 % 11.4 % 65.3 %Short positions0.8 % -18.7 % -30.3 %Other-0.7 % -0.1 % -4.2 % -18.0 % -7.4 % 30.8 %The Investment Funds' aggregate return was -18.0% for 2015 , due to losses in their long equity exposure, primarily in a few of their largest core holdingsincluding energy. These losses were partially offset by gains in long equity positions in a few of their largest core holdings as well as gains in their short positions,including broad market hedges.The Investment Funds' aggregate return was -7.4% for 2014 , due to losses in their short equity exposure, primarily through broad market hedges, as well asother losses in long equity positions including energy. These losses were partially offset by gains in long equity positions in a few of their largest core holdings.The Investment Funds' aggregate return was 30.8% for 2013 primarily due to gains in their long exposure, primarily in a few of the largest core holdings.These gains were partially offset by losses in their short equity exposure, including broad market hedges as equity markets rallied in 2013.Since inception in November 2004, the Investment Funds' gross return is 171.1%, representing an annualized rate of return of 9.3% through December 31,2015 .102Automotive Year Ended December 31, 2015 2014 2013 (in millions)Net sales$7,789 $7,317 $6,905Cost of goods sold6,577 6,260 5,885Gross margin$1,212 $1,057 $1,020We conduct our Automotive segment through our majority ownership in Federal-Mogul Holdings Corporation ("Federal-Mogul") and through our whollyowned subsidiary, IEH Auto Parts Holding LLC ("IEH Auto"), which acquired substantially all of the auto parts assets in the United States of Uni-Select, Inc.through an acquisition that was consummated during the second quarter of 2015. See Note 3 , " Operating Units - Automotive," to the consolidated financialstatements for further discussion of this acquisition. Intercompany transactions between Federal-Mogul and IEH Auto have been eliminated in consolidation andthe discussion below is net of eliminations.On February 3, 2016, pursuant to a tender offer, Icahn Enterprises acquired a majority of the outstanding shares of Pep Boys - Manny, Moe & Jack ("PepBoys"), a leading aftermarket provider of automotive service, tires, parts and accessories across the United States and Puerto Rico. On February 4, 2016, IcahnEnterprises completed the acquisition of the remaining outstanding shares of Pep Boys and our wholly owned subsidiary, IEP Parts Acquisition LLC, merged withand into Pep Boys, with Pep Boys surviving the merger as a wholly owned subsidiary of Icahn Enterprises Holdings. The total value for the acquisition of PepBoys was approximately $1.2 billion , including the fair value of our equity interest in Pep-Boys just prior to our acquisition of a controlling interest. Pep Boys'operations will comprise a portion of our Automotive segment and will be operated independently of Federal-Mogul and IEH Auto.Federal-Mogul is a leading global supplier of a broad range of components, accessories and systems to the automotive, small engine, heavy-duty, marine,railroad, agricultural, off-road, aerospace and energy, industrial and transport markets, including customers in both the original equipment manufacturers andservicers (“OE”) market and the replacement market (“aftermarket”). Federal-Mogul’s customers include the world’s largest automotive OEs and majordistributors and retailers in the independent aftermarket.Federal-Mogul operates with two end-customer focused businesses. The Powertrain business focuses on original equipment products for automotive, heavyduty and industrial applications. Powertrain operates manufacturing facilities in 19 countries and derived 35% of its 2015 OE sales in North America, 46% inEurope, the Middle-East and Africa ("EMEA"), and 19% in the rest of the world ("ROW"). The Motorparts business sells and distributes a broad portfolio ofproducts in the global aftermarket, while also serving original equipment manufacturers with products including braking, chassis, wipers, and other vehiclecomponents. Motorparts operates manufacturing sites in 15 countries and distribution centers and warehouses in 14 countries. Motorparts derived 56% of its salesthrough North America, 37% in EMEA, and 7% in ROW.Federal-Mogul's Annual Report on Form 10-K contains a detailed description of its business, products, industry, operating strategy and associated risks.Federal-Mogul's filings with the SEC are available on the SEC's website at www.sec.gov .IEH Auto is a leading automotive parts distributor for domestic and imported vehicles and has 34 distribution centers and satellite locations and 264corporate-owned parts stores in the United States and supports a network of more than 2,000 independent parts stores. Through its locations, IEH Auto sellspredominantly to commercial aftermarket customers in the do-it-for-me market as well as retail and do-it-yourself customers. IEH Auto operates independently ofFederal-Mogul.Major Influences Impacting Results of OperationsOur Automotive segment is affected by the following trends and market conditions:Global Vehicle Production LevelsGlobal vehicle production increased by 1.3% in 2015. European vehicle production rose 4.1% from 2014 levels. North American vehicle productionincreased 3.6%, with positive growth in Mexico and the United States. Vehicle production in the Asia-Pacific region increased just under 1% in 2015, reachinganother record high. Among the major regions, only South America posted a decline in 2015, down 19.3%.Global Vehicle Sales LevelsGlobal vehicle sales increased by 1.8% in 2015. European vehicle sales rose 3.5% from 2014 levels. North American vehicles sales increased 6.3%, withpositive growth in Canada, Mexico and the United States. Vehicle sales in the Asia-Pacific103region increased 1.5% in 2015, reaching another record high. Among the major regions, only South America posted a decline in 2015 which was down 21.1%.Part Replacement TrendsThe strength of the aftermarket business is influenced by several key drivers. These include the vehicle population (or "parc"), average vehicle age, fuel pricesand vehicle distance traveled. The vehicle parc is estimated to have expanded in most major markets, including the United States, Japan, China, and Germany. Average vehicle ages also increased, despite growth in new vehicle sales, in most regions.Recent Decline In Oil PricesThe recent decline in oil prices results in lower fuel prices for consumers. Lower fuel prices provide consumers with more discretionary income for vehiclerepairs and tends to encourage more driving miles, which in turn accelerates wear on vehicle components, accelerating the need for replacements. Low fuel pricesalso encourage more vehicle sales, which increases demand for parts from OEMs.Foreign currenciesGiven the global nature of our operations, we are subject to fluctuations in foreign exchanges rates. During 2015, foreign currency fluctuations had aconsiderable effect on our reported earnings in U.S. dollars compared to 2014.Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014Consolidated net sales increased for the year ended December 31, 2015 compared to the prior year by $472 million ( 6% ) (net of certain intercompanyactivity), of which $396 million is attributable to the acquisition of IEH Auto during 2015 and $76 million is attributable to Federal-Mogul.Federal-Mogul's net sales were negatively impacted by the strengthening of the U.S. dollar against several global currencies which resulted in an unfavorableforeign currency impact of $642 million. Excluding the impact of foreign currency, Federal-Mogul's sales volumes increased by $718 million. This sales growth iscomprised of an increase in the Powertrain business' external sales of $427 million, reflecting the inclusion of the acquisition of certain engine componentsbusiness of TRW Automotive Holdings Corp.'s ("TRW") as well as an increase in volume for the quarter. External sales in the Motorparts business increased by$291 million (net of intercompany eliminations), driven primarily by the acquisitions of Affinia Group Inc. ("Affinia") and Honeywell International Inc.'s("Honeywell") brake component business.The Powertrain business generated approximately 63% of its sales outside of the United States and the resulting currency movements decreased sales by $407million. On a constant dollar basis, Powertrain external sales increased 12% compared to the same period in 2014. The increase in Powertrain’s sales reflects theinclusion of the acquisition of certain assets of the TRW engine components business, as well as increases in volume which, together, increased sales by $427million. This figure includes the impact of customer price decreases of $28 million. Including the impact of sales from acquisitions, the Powertrain business' salesin North America, EMEA and ROW grew by 3.3%, 6.3% and 1%, respectively.Excluding the unfavorable currency impact of $235 million, Motorparts' external sales increased by $291 million (net of intercompany eliminations). Thisincrease was primarily due to additional sales related to the Honeywell braking and Affinia chassis component acquisitions. Including the impact of sales fromacquisitions, the Motorparts business' sales in North America, EMEA and ROW grew by 1.4%, 4.8% and 1.6%, respectively.The IEH Auto acquisition contributed $396 million in net sales for the period June 1, 2015 through December 31, 2015. IEH Auto is a service organizationengaged in the distribution of automotive aftermarket parts. Through its locations, IEH Auto sells predominantly to commercial aftermarket customers in the "do-it-for-me" market as well as "do-it-yourself" customers.Cost of goods sold for the year ended December 31, 2015 increased by $317 million ( 5% ) as compared to the prior year (net of certain intercompanyactivity). The increase attributable to Federal-Mogul was primarily due to an increase in sales volumes in both the Powertrain and Motorparts businesses, reflectingan inclusion of the acquisitions of the TRW engine component business, the Affinia chasis business as well as the Honeywell brake component business. Inaddition, cost of goods sold increased due to the IEH Auto acquisition.Gross margin for the year ended December 31, 2015 increased by $155 million ( 15% ) compared to the prior year (net of certain intercompany activity).Gross margin was 16% and 14% of net sales for the years ended December 31, 2015 and 2014, respectively. The improvement in gross margin percentage over therespective periods was primarily attributable to the acquisition of IEH Auto during 2015 whose product sales margins are higher than those of Federal-Mogul's.104Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Consolidated net sales increased for the year ended December 31, 2014 by $412 million (6%) as compared to the corresponding prior year period. Excludingdispositions of $119 million and unfavorable foreign currency impacts of $51 million, sales organically increased by $582 million or 9% on a constant dollar basis.This increase is driven by sales growth in the Powertrain business of $301 million (8%) and an increase in sales in the Motorparts business of $281 million (10%),driven by the Affinia chassis and the Honeywell brake component business acquisitions.The Powertrain business' sales increase of $301 million is driven by an increase in sales volumes of $330 million, offset by customer price reductions of $29million. This increase is attributable to higher sales volumes and market share gains across all regions of the world. Including the impact of sales from acquisitions,the Powertrain business' sales in North America, EMEA and ROW grew by 3.0%, 3.0% and 1.9%, respectively.Net sales in the Motorparts business increased by $281 million primarily due to the Affinia chassis and the Honeywell brake component acquisitions.Including the impact of sales from acquisitions, the Motorparts business' sales in North America, EMEA and ROW grew by 3.0%, 5.0% and 1.1%, respectively.Cost of goods sold for the year ended December 31, 2014 increased by $375 million (6%) as compared to the corresponding prior year period. The increasein cost of goods sold was primarily due to acquisitions.Gross margin for the year ended December 31, 2014 increased by $37 million (4%) as compared to the corresponding prior year period. Gross margin was14% and 15% of net sales for the years ended December 31, 2014 and 2013, respectively. The decrease in the gross margin percentage over the respective periodswas primarily due to costs incurred related to Motorparts business strategic initiatives as well as unfavorable foreign currency impact.Energy Year Ended December 31, 2015 2014 2013 (in millions)Net Sales: Petroleum$5,162 $8,829 $8,683Fertilizer289 299 324Eliminations(18) (19) (21) $5,433 $9,109 $8,986Cost of Goods Sold: Petroleum$4,755 $8,584 $8,034Fertilizer212 209 191Eliminations(18) (19) (21) $4,949 $8,774 $8,204Gross Margin: Petroleum$407 $245 $649Fertilizer77 90 133Eliminations— — — $484 $335 $782105The following table provides a reconciliation of our Energy segment's petroleum business' gross margin to refining margin and refining margin adjusted forFIFO impacts for the periods indicated: Year Ended December 31, 2015 2014 2013 (in millions, except barrels metrics)Net sales$5,162 $8,829 $8,683Cost of goods sold4,755 8,584 8,034Gross margin407 245 649Add back: Direct operating expenses376 409 362Major scheduled turnaround expenses102 7 —Flood insurance recovery(27) — —Depreciation and amortization160 155 146Refining margin1,018 816 1,157FIFO impacts (favorable) unfavorable60 161 (21)Refining margin adjusted for FIFO impacts$1,078 $977 $1,136 Gross margin per crude oil throughput barrel$5.78 $3.42 $9.48Refining margin per crude oil throughput barrel14.45 11.38 16.90Refining margin per crude oil throughput barrel adjusted for FIFO impacts15.31 13.62 16.59 Total crude oil throughput (barrels per day)193,077 196,545 187,568 As of December 31, 2015 , we owned 82.0% of the total outstanding common stock of CVR. In addition, as of December 31, 2015 , Icahn Enterprises andIcahn Enterprises Holdings directly owned approximately 4.0% of the total outstanding common stock of CVR Refining.CVR is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries through its holdings inCVR Refining, LP (“CVR Refining”) and CVR Partners, LP (“CVR Partners”), respectively. CVR Refining is an independent petroleum refiner and marketer ofhigh value transportation fuels. CVR Partners produces nitrogen fertilizers in the form of urea ammonium nitrate ("UAN") and ammonia. As of December 31, 2015, CVR owned 100% of the general partners of CVR Refining and CVR Partners and approximately 66% of the outstanding common units of CVR Refining and53% of the outstanding common units of CVR Partners. Subsequent to the completion of the pending mergers as discussed below, it is estimated that CVR willhold approximately 34% of the outstanding common units of CVR Partners and 100% of the general partner interest.CVR's Annual Report on Form 10-K contains a detailed description of its business, products, industry, operating strategy and associated risks. CVR's filingswith the SEC are available on the SEC's website at www.sec.gov.Pending MergersAs further discussed in Note 3 , " Operating Units - Energy," on August 9, 2015, CVR Partners entered into an Agreement and Plan of Merger with RentechNitrogen Partners, L.P. ("Rentech Nitrogen") and Rentech Nitrogen GP, LLC ("Rentech Nitrogen GP"), pursuant to which CVR Partners would acquire RentechNitrogen and Rentech Nitrogen GP by merging two newly-created direct wholly owned subsidiaries of CVR Partners with and into those entities with RentechNitrogen and Rentech Nitrogen GP continuing as surviving entities and wholly owned subsidiaries of CVR Partners (together, the "CVR Partners Mergers"). Inaccordance with US GAAP, our Energy segment anticipates accounting for the CVR Partners Mergers as an acquisition of a business with CVR Partners as theacquirer. The completion of the CVR Partners Mergers is subject to satisfaction or waiver of certain closing conditions.Major Influences on Results of OperationsThe earnings and cash flows of our Energy segment's petroleum business are primarily affected by the relationship between refined product prices and theprices for crude oil and other feedstocks that are processed and blended into refined products. The cost to acquire crude oil and other feedstocks and the price forwhich refined products are ultimately sold depend106on factors beyond its control, including the supply of and demand for crude oil, as well as gasoline and other refined products which, in turn, depend on, amongother factors, changes in domestic and foreign economies, weather conditions, domestic and foreign political affairs, production levels, the availability of imports,the marketing of competitive fuels and the extent of government regulation. Because the petroleum business applies first-in, first-out ("FIFO") accounting to valueits inventory, crude oil price movements may impact net income in the short term because of changes in the value of its unhedged on-hand inventory. The effect ofchanges in crude oil prices on our results of operations is influenced by the rate at which the prices of refined products adjust to reflect these changes.The prices of crude oil and other feedstocks and refined product prices are also affected by other factors, such as product pipeline capacity, local marketconditions and the operating levels of competing refineries. Crude oil costs and the prices of refined products have historically been subject to wide fluctuations.Widespread expansion or upgrades of competitors' facilities, price volatility, international political and economic developments and other factors are likely tocontinue to play an important role in refining industry economics. These factors can impact, among other things, the level of inventories in the market, resulting inprice volatility and a reduction in product margins. Moreover, the refining industry typically experiences seasonal fluctuations in demand for refined products, suchas increases in the demand for gasoline during the summer driving season and for home heating oil during the winter, primarily in the Northeast. In addition tocurrent market conditions, there are long-term factors that may impact the demand for refined products. These factors include mandated renewable fuels standards,proposed climate change laws and regulations, and increased mileage standards for vehicles. The petroleum business is also subject to the Renewable FuelStandard ("RFS") of the United States Environmental Protection Agency ("EPA"), which requires it to either blend "renewable fuels" with its transportation fuelsor purchase renewable fuel credits, known as renewable identification numbers ("RINs"), in lieu of blending.The cost of RINs for the years ended December 31, 2015 , 2014 and 2013 was approximately $124 million , $127 million and $181 million , respectively. Theprice of RINs has been extremely volatile and has increased over the last year. The future cost of RINs for the petroleum business is difficult to estimate.Additionally, the cost of RINs is dependent upon a variety of factors, which include the availability of RINs for purchase, the price at which RINs can bepurchased, transportation fuel production levels, the mix of the petroleum business’ petroleum products, as well as the fuel blending performed at its refineries anddownstream terminals, all of which can vary significantly from period to period. Based upon recent market prices of RINs and current estimates related to the othervariable factors, the petroleum business estimates that the total cost of RINs will be approximately $140 million to $190 million for the year ending December 31,2016.Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of goods sold (exclusive ofdepreciation and amortization, direct operating expenses and fair value inventory adjustments) and refining margin per crude oil throughput barrel adjusted forFIFO impact is a measurement calculated as the difference between net sales and cost of goods sold (exclusive of depreciation and amortization, direct operatingexpenses and fair value inventory adjustments) adjusted for FIFO impacts. Refining margin and refining margin adjusted for FIFO impact are non-GAAP measuresthat we believe are important to investors in evaluating our Energy segment refineries' performance as a general indication of the amount above our Energysegment's cost of goods sold (taking into account the impact of utilization of FIFO) they are able to sell refined products. We believe that refining margin andrefining margin per crude oil throughput barrel are important to enable investors to better understand and evaluate our Energy segment's ongoing operating resultsand allow for greater transparency in the review of our overall financial, operational and economic performance. In addition, we believe that presenting refiningmargin per crude oil throughput barrel adjusted for FIFO impact is useful to investors because this measure more accurately reflects the current operatingenvironment.In order to derive the refining margin per crude oil throughput barrel, our Energy segment utilizes the total dollar figures for refining margin, as derivedabove, and divides that by the applicable number of crude oil throughput barrels for the period. Our Energy segment's calculation of refining margin and refiningmargin adjusted for FIFO impact may differ from calculations of other companies in the industry, thereby limiting its usefulness as a comparative measure. Underour Energy segment's FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our Energy segment's crude oil,work in process and finished goods, thereby resulting in favorable FIFO impacts when crude oil prices increase and unfavorable FIFO impacts when crude oilprices decrease.In order to assess the operating performance of the nitrogen fertilizer business, CVR calculates the product pricing at gate as an input to determine itsoperating margin. Product pricing at gate represents net sales less freight revenue divided by product sales volume in tons. CVR believes product pricing at gate isa meaningful measure because it sells products at its plant gate and terminal locations' gates (sold gate) and delivered to the customer's designated delivery site(sold delivered). The relative percentage of sold gate versus sold delivered can change period to period. The product pricing at gate provides a measure that isconsistently comparable period to period.107Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014Net sales for the petroleum business, before eliminations, for the year ended December 31, 2015 as compared to the corresponding prior year perioddecreased by $3.7 billion ( 42% ), primarily due to significantly lower sales prices of transportation fuels and by-products. The average sales price per gallon forthe year ended December 31, 2015 for gasoline and distillate decreased by approximately 36% and 42%, respectively, as compared to the corresponding prior yearperiod. Overall sales volume decreased by approximately 3% for the year ended December 31, 2015 as compared to the corresponding prior year period. Salesvolumes for 2015 were impacted by decreased production as a result of the major scheduled turnaround completed at the Coffeyville refinery in the fourth quarterof 2015 and lower purchased product volumes for resale. Sales volumes for 2014 were impacted by reduced crude oil throughput and production as a result of theCoffeyville refinery shutdown following the isomerization unit fire during the third quarter of 2014 and fluid catalytic cracking unit ("FCCU") outage at theWynnewood refinery during the fourth quarter of 2014. For the year ended December 31, 2015 , CVR's petroleum business sold approximately 40.1 million and33.1 million barrels of gasoline and distillate, respectively, with an average sales price per gallon for gasoline and distillate of $1.61 and $1.62, respectively. Forthe year ended December 31, 2014, CVR's petroleum business sold approximately 40.3 million and 34.9 million barrels of gasoline and distillate, respectively,with an average sales price per gallon for gasoline and distillate of $2.53 and $2.81, respectively.Net sales for the fertilizer business, before eliminations, for the year ended December 31, 2015 as compared to the corresponding prior year period decreasedby $10 million ( 3% ), primarily due to lower UAN sales prices and UAN sales volumes, partially offset by higher ammonia sales volumes. For the year endedDecember 31, 2015 , CVR sold 939,547 and 32,326 tons of UAN and ammonia, respectively, with a sales price of $275 and $533 per ton, respectively. For theyear ended December 31, 2014, CVR sold 951,043 and 24,378 tons of UAN and ammonia, respectively, with a sales price of $288 and $536 per ton, respectively.On-stream factors (total number of hours operated divided by total hours in the reporting period) for the gasification, ammonia and UAN units were 90.2%, 87.5%and 87.3%, respectively, for the year ended December 31, 2015 and 96.8%, 92.6% and 92.0%, respectively, for the year ended December 31, 2014.Cost of goods sold for the petroleum business, before eliminations, for the year ended December 31, 2015 as compared to the corresponding prior year perioddecreased by $3.8 billion ( 45% ), primarily due to a decrease in cost of consumed crude oil and purchased products for resale. The decrease in consumed crude oilcost was due to a decrease in crude oil throughput volume and crude oil prices. The average cost per barrel of crude oil consumed for the year ended December 31,2015 was $47.86 as compared to $92.57 for the comparable prior period, a decrease of approximately 48%. The impact of FIFO accounting also impacted cost ofgoods sold during the comparable periods. Under the FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation ofcrude oil, work in process and finished goods, thereby resulting in a favorable FIFO inventory impact when crude oil prices increase and an unfavorable FIFOinventory impact when crude oil prices decrease. For the year ended December 31, 2015 and 2014, the petroleum business had unfavorable FIFO inventoryimpacts of $60 million and $161 million , respectively. The major factor contributing to the unfavorable FIFO impact for the year ended December 31, 2014 wasthe decline in the market price of West Texas Intermediate ("WTI"), a grade of crude oil used as a benchmark in oil pricing, from $95.44 at the beginning of 2014to $53.27 on December 31, 2014. The FIFO inventory impact for 2014 included a lower of cost or market write-down of $37 million, which was recorded in thefourth quarter as a result of the significant decline in the market price of crude oil.Cost of goods sold for the petroleum business includes cost of crude oil, other feedstocks and blendstocks, purchased products for resale, RINs, transportationdistribution costs, costs associated with the operations of CVR's refineries (such costs are collectively referred to as "direct operating expenses") such as energyand utility costs, property taxes, catalyst and chemical costs, repairs and maintenance and labor and environmental compliance costs. In addition, cost of goods soldincludes depreciation and amortization.Refining margin per barrel of crude oil throughput increased to $14.45 for the year ended December 31, 2015 from $11.38 for the corresponding prior yearperiod. Refining margin adjusted for FIFO impact increased to $15.31 per crude oil throughput barrel for the year ended December 31, 2015 as compared to $13.62per crude oil throughput barrel for the corresponding prior year period. Gross margin per barrel increased to $5.78 for the year ended December 31, 2015 ascompared to gross margin per barrel of $3.42 in the corresponding prior year period. The increase in refining margin and gross margin per barrel was primarily dueto the higher unfavorable FIFO impact in 2014 as a result of significant decline in the market price of crude oil.The fertilizer business' cost of goods sold, before eliminations, for the year ended December 31, 2015 as compared to the corresponding prior year perioddecreased by $3 million ( 1% ), primarily due to lower consumption of pet coke mostly due to the decrease in production during the turnaround and the Linde airseparation unit related downtime, lower pet coke pricing, decreased distribution costs, freight expenses and purchased ammonia.108Year Ended December 31, 2014 Compared to 2013Net sales for the petroleum business, before eliminations, for the year ended December 31, 2014 as compared to the corresponding prior year period increasedby $146 million (2%), primarily due to higher overall sales volume largely offset by lower sales prices for gasoline and distillates. Sales volume increased byapproximately 8% for the year ended December 31, 2014 as compared to the corresponding prior year period. Sales volumes for 2014 were impacted by reducedcrude oil throughput and production as a result of the Coffeyville refinery shutdown following the isomerization unit fire during the third quarter of 2014 andFCCU outage at the Wynnewood refinery during the fourth quarter of 2014. Sales volumes for 2013 were impacted by downtime associated with the FCCU outageat the Coffeyville refinery during the third quarter of 2013. For the year ended December 31, 2014, CVR's petroleum business sold approximately 40.3 million and34.9 million barrels of gasoline and distillate, respectively, with an average sales price per gallon for gasoline and distillate of $2.53 and $2.81, respectively. Forthe year ended December 31, 2013, CVR's petroleum business sold approximately 37.8 million and 30.6 million barrels of gasoline and distillate, respectively,with an average sales price per gallon for gasoline and distillate of $2.72 and $3.02, respectively.Net sales for the fertilizer business, before eliminations, for the year ended December 31, 2014 as compared to the corresponding prior year period decreasedby $25 million (8%), primarily due to lower UAN sales prices and ammonia sales volumes, partially offset by higher UAN sales volumes. For the year endedDecember 31, 2014, CVR sold 951,043 and 24,378 tons of UAN and ammonia, respectively, with a sales price of $288 and $536 per ton, respectively. For the yearended December 31, 2013, CVR sold 904,596 and 40,535 tons of UAN and ammonia, respectively, with sales price of $315 and $660 per ton, respectively. On-stream factors (total number of hours operated divided by total hours in the reporting period) for the gasification, ammonia and UAN units were 96.8%, 92.6% and92.0%, respectively, for the year ended December 31, 2014 and 95.6%, 94.4% and 91.9%, respectively, for the year ended December 31, 2013.Cost of goods sold for the petroleum business, before eliminations, for the year ended December 31, 2014 as compared to the corresponding prior year periodincreased by $550 million (7%), primarily due to an increase in cost of consumed oil and refined fuels purchased for resale. The average cost per barrel of crude oilconsumed for the year ended December 31, 2014 was $92.57 compared to $95.05 for the comparable period of 2013, a decrease of approximately 3%. Salesvolume of refined fuels increased by approximately 8%. The impact of FIFO accounting also impacted cost of goods sold during the comparable periods. Underthe FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods, therebyresulting in a favorable FIFO inventory impact when crude oil prices increase and an unfavorable FIFO inventory impact when crude oil prices decrease. For theyear ended December 31, 2014 and 2013, the petroleum business had an unfavorable FIFO inventory impact of $161 million and a favorable FIFO inventoryimpact of $21 million, respectively. The major factor contributing to the unfavorable FIFO impact for the year ended December 31, 2014 was the decline in themarket price of WTI from $95.44 at the beginning of 2014 to $53.27 on December 31, 2014. The FIFO inventory impact for 2014 includes a lower of cost ormarket write-down of $37 million, which was recorded in the fourth quarter as a result of the significant decline in the market price of crude oil.Cost of goods sold for the petroleum business includes cost of crude oil, other feedstocks and blendstocks, purchased products for resale, RINs, transportationdistribution costs, costs associated with the operations of CVR's refineries (such costs are collectively referred to as "direct operating expenses") such as energyand utility costs, property taxes, catalyst and chemical costs, repairs and maintenance and labor and environmental compliance costs. In addition, cost of goods soldincludes depreciation and amortization.Refining margin per barrel of crude oil throughput decreased to $11.38 for the year ended December 31, 2014 from $16.90 for the corresponding prior yearperiod. Refining margin adjusted for FIFO impact was $13.62 per crude oil throughput barrel for the year ended December 31, 2014 as compared to $16.59 percrude oil throughput barrel for the corresponding prior year period. Gross margin per barrel decreased to $3.42 for the year ended December 31, 2014 as comparedto gross margin per barrel of $9.48 in the corresponding prior year period. The decrease in refining margin and gross margin per barrel was primarily due to adecrease in sales price for gasoline and distillate. The average sales price for both gasoline and distillates declined approximately 7% for the year ended December31, 2014 as compared to the corresponding prior year period.The fertilizer business' cost of goods sold, before eliminations, for the year ended December 31, 2014 as compared to the corresponding prior year periodincreased by $18 million (9%), primarily due to increased distribution costs mostly due to the increase in railcar regulatory inspections and repairs as well asincreased ammonia purchases, partially offset by lower freight and pet coke expenses. The increase in railcar regulatory inspections and repairs is related to a largerportion of the fertilizer business' fleet due for regulatory inspections and related repairs during the year ended December 31, 2014 as compared to thecorresponding prior year period.109Metal s Year Ended December 31, 2015 2014 2013 (in millions)Net sales$361 $711 $929Cost of goods sold406 728 948Gross margin$(45) $(17) $(19)Summarized ferrous tons and non-ferrous pounds sold for 2015, 2014 and 2013 are as follows: Year Ended December 31, 2015 2014 2013 (in 000s)Ferrous tons sold850 1,209 1,444Non-ferrous pounds sold117,939 147,443 230,571The scrap metals business is highly cyclical and is substantially dependent upon the overall economic conditions in the U.S. and other global markets. Ferrousand non-ferrous scrap has been historically vulnerable to significant declines in consumption and product pricing during prolonged periods of economic downturnor stagnation. Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014Net sales for the year ended December 31, 2015 decreased by $350 million ( 49% ) as compared to the prior year. The decrease was primarily due to lowerferrous and non-ferrous shipment volumes and selling prices.Ferrous shipments decreased by 359,000 gross tons ( 30% ) and average pricing decreased by $138 per gross ton (37%) for the year ended December 31,2015 as compared to the prior year. The shipment decrease was attributable to reduced demand from domestic steel mills, low iron ore pricing, low export demanddrawing coastal scrap into the areas where PSC Metals operates, and to the negative impact of extremely low market prices on the availability of feedstock. Ferrousmarket prices at the end of 2015 were at the lowest levels seen since early 2009, during the great recession. Non-ferrous shipment volumes decreased by29,504,000 pounds ( 20% ) and average selling prices decreased by $0.17 per pound (20%), primarily driven by the effects of steep market price declines in 2015.Shipments from an aluminum ingot tolling operation, closed at the end of March 2014, accounted for 24% of the year on year volume decrease for non-ferrousshipments.Cost of goods sold for the year ended December 31, 2015 decreased by $322 million ( 44% ) compared to the prior year. The decrease was primarilyattributable to lower shipment volumes and lower material and processing costs. Gross margin as a percentage of net sales was a loss of 12% for the year endedDecember 31, 2015 as compared to a loss of 2% for the prior year period. While material margin component of the gross margin improved during 2015 ascompared to 2014, processing costs, as a percentage of net sales, increased over the respective periods. The improvement in material margin component of thegross margin reflected improved buying efforts despite the unfavorable impact of increased competition for shredder feedstock and lower pricing for non-ferrousauto shredder residue. Processing costs, as a percentage of net sales, increased due to decreases in sales volumes and market prices over the respective periods.PSC Metals continues to expend considerable effort to bring costs in line with lower volumes and market pricing. During 2015 PSC Metals closed nine feederyards in order to better align its cost structure with the current economic climate.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Net sales for the year ended December 31, 2014 decreased by $218 million (23%) compared to the prior year. The decrease was primarily driven by lowerferrous and non-ferrous shipment volumes and selling prices. Shipment volumes were lower in 2014 than in 2013 for all product lines except secondary plate, andaverage prices were lower for all product lines except brokerage.Ferrous shipments decreased by 235,000 gross tons (16%) while average pricing was $4 per gross ton (1%) higher during the year ended December 31, 2014as compared to the prior year period. The volume decrease was largely attributable to raw material shortages and transportation problems caused by severe weatherconditions during the first quarter of 2014, to general material supply constraints, and to a poor export market that increased competition for limited domesticdemand. The increase in average pricing for 2014 as compared to the prior year period was largely driven by higher market prices (4%) for ferrous scrap during thefirst nine months of 2014. A $50 per gross ton market price drop in the fourth quarter of 2014 reduced the full year-over-year price differential to 1% favorable.Non-ferrous shipment volumes decreased by 83,128,000 pounds (36%),110primarily driven by lower shipments of aluminum products due to the exit from aluminum tolling activities at the end of the first quarter of 2014 and to a refocus ofaluminum shredding capacity in 2014. Average selling prices for non-ferrous decreased $0.03 per pound (3%) due to lower market pricing.Cost of goods sold for the year ended December 31, 2014 decreased by $220 million (23%) compared to the prior year. The decrease was primarily due tolower shipment volumes and lower material and processing costs. Gross margin as a percentage of net sales was a loss of 2% for each of the years endedDecember 31, 2014 and 2013, as margins continued to be negatively impacted by ongoing competitive pressure for shredder feedstock.Railcar Year Ended December 31, 2015 2014 2013 (in millions)Net Sales/Other Revenues From Operations: Manufacturing$1,019 $1,020 $864Railcar leasing459 368 277Railcar services74 68 73Eliminations(613) (666) (475) $939 $790 $739Cost of Goods Sold/Other Expenses From Operations: Manufacturing$770 $749 $667Railcar leasing196 154 131Railcar services58 55 54Eliminations(485) (495) (366) $539 $463 $486Gross Margin: Manufacturing$249 $271 $197Railcar leasing263 214 146Railcar services16 13 19Eliminations(128) (171) (109) $400 $327 $253We conduct our Railcar segment through our majority ownership interests in American Railcar Industries, Inc. ("ARI") and American Railcar Leasing, LLC("ARL").ARI's Annual Report on Form 10-K contains a detailed description of its business, products, industry, operating strategy and associated risks. ARI's filingswith the SEC are available on the SEC's website at www.sec.gov.The North American railcar market has been, and our Railcar segment expects it to continue to be, highly cyclical. The tank railcar market continues tosoften, which we believe is driven by multiple factors including record high deliveries of tank railcars in recent years. Additionally, the recent volatility in oilprices and uncertainty surrounding the May 2015 release of regulations related to tank railcars in the U.S. and Canada have led to reduced demand for railcars inthe energy transportation industry. Customers continue to weigh the costs versus benefits of investing in new tank railcars or modifying their existing tank railcarsfor flammable service. Our Railcar segment cannot assure you that hopper or tank railcar demand will maintain its current pace or return to historical averagelevels, that demand for any railcar types or railcar services will improve, or that our railcar backlog, orders or shipments will track industry-wide trends.Our Railcar segment continues to invest capital and evaluate opportunities to further expand its manufacturing flexibility and repair capacity. During 2015 ourRailcar segment completed three repair expansion projects and just recently in 2016 completed an expansion project at its tank railcar manufacturing facility,which enables it to perform retrofit and repair work in addition to the manufacturing work already performed there. Also during 2015, our Railcar segment beganproduction of its newly designed tank railcars that satisfy the May 2015 regulations. Our Railcar segment's continuous commitment to quality and its efforts toincrease flexibility at its tank railcar manufacturing facility allows it to build these designs efficiently and cost111effectively. Our Railcar segment cannot assure you any increased repair capacity or manufacturing flexibility will be sufficient or necessary to meet the demands ofthe industry.Railcar shipments for the year ended December 31, 2015 were approximately 8,900 railcars, including approximately 5,060 railcars to leasing customers, ascompared to 7,970 railcars for the prior year, of which approximately 5,230 railcars were to leasing customers. (Shipments of railcars for lease are included inmanufacturing operations' net sales in the table above however they are eliminated from net sales in consolidation as they represent shipments to ARI's leasingbusiness and ARL.)As of December 31, 2015 , our Railcar segment had a backlog of approximately 7,080 railcars, including approximately 1,450 railcars for lease customers ascompared to a backlog of approximately 11,730 railcars as of December 31, 2014, including approximately 4,910 railcars for lease customers.Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014Total manufacturing revenues, before elimination of railcar sales to our Railcar segment's leasing operations, for the year ended December 31, 2015 decreasedby $1 million as compared to the corresponding prior year period. Although there was a higher volume of shipments in 2015 compared to 2014, there was a highermix of hopper railcars in 2015, which generally sell at lower prices than tank railcars due to less material and labor content. Manufacturing revenues for the yearended December 31, 2015 include revenues of $579 million relating to railcars built for our Railcar segment's leasing operations, compared to $641 million for thecomparable prior year period.Gross margin from manufacturing operations, before eliminations relating to railcar sales to our Railcar segment's leasing operations, for the year endedDecember 31, 2015 decreased to $249 million from $271 million for the comparable prior year period. Gross margin from manufacturing operations as apercentage of manufacturing revenues decreased to 24% for the year ended December 31, 2015 from 27% for the comparable prior year period. The decrease ingross margin over the respective periods was due to a higher mix of hopper railcar shipments, which generally sell at lower prices than tank railcars due to lessmaterial and labor content.Railcar leasing revenues increased for the year ended December 31, 2015 as compared to the corresponding prior year period due to an increase in number ofrailcars leased to customers as lease rates were relatively flat compared to 2014. Total railcars on lease at the end of 2015 were approximately 45,050 as comparedto approximately 39,700 at the end of 2014.Railcar services revenues increased for the year ended December 31, 2015 as compared to the corresponding prior year period primarily due to an increase indemand, a favorable change in mix of work at our Railcar segment's repair facilities and the additional capacity resulting from expansion projects during 2015.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Total manufacturing revenues, before elimination of railcar sales to our Railcar segment's leasing operations, for the year ended December 31, 2014 increasedby $156 million (18%) over the comparable prior year period. The increase was primarily due to increased hopper railcar shipments and strong market conditionsfor tank railcars. Manufacturing revenues for the year ended December 31, 2014 included revenues of $641 million relating to railcars built for our Railcarsegment's leasing operations, compared to $456 million for the comparable prior year period.Gross margin from manufacturing operations, before eliminations relating to railcar sales to our Railcar segment's leasing operations, for the year endedDecember 31, 2014 was $271 million compared to $197 million for the comparable prior year period. Gross margin from manufacturing operations as a percentageof manufacturing revenues increased to 27% for the year ended December 31, 2014 from 23% for the comparable prior year period. The improved margin wasprimarily due to ramped up production at our Railcar segment's hopper railcar manufacturing facility that created operating efficiencies and leveraged overheadcosts. This was in addition to efficiencies that our Railcar segment continued to generate at its tank railcar manufacturing facility due to high production volumes.Railcar leasing revenues increased for the year ended December 31, 2014 as compared to the corresponding prior year period due to an increase in number ofrailcars leased to customers and an increase in the average lease rate. Total railcars on lease at the end of 2014 were approximately 39,700 as compared toapproximately 34,700 at the end of 2013.Railcar services revenues decreased for the year ended December 31, 2014 as compared the corresponding prior year period primarily due to certain repairprojects being performed at our Railcar segment's hopper railcar manufacturing facility during 2013 that did not continue into 2014. In 2014, production of hopperrailcars ramped up due to increased demand, thus these repair projects were no longer being performed at our Railcar segment's manufacturing facilities.112Other SegmentsGamingTropicana's Annual Report on Form 10-K contains a detailed description of its business, products, industry, operating strategy and associated risks.Tropicana's filings with the SEC are available on the SEC's website at www.sec.gov.Current economic conditions continue to adversely impact Tropicana and the gaming industry as a whole. Tropicana believes its guests have reduced theirdiscretionary spending as a result of uncertainty and instability relating to employment and the investment and housing markets. While general economicconditions have modestly improved, we cannot assure that they will continue to improve or will not worsen in the future.Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014Casino revenues are one of Tropicana's main performance indicators and account for a significant portion of its net revenues. The increase in casino revenuesfor the year ended December 31, 2015 as compared to the corresponding prior year period was primarily due to an increase in consolidated gaming volumes of3.8%, primarily due to the Lumière acquisition on April 1, 2014, coupled with higher gaming volumes at Tropicana Casino and Resort, Atlantic City ("TropicanaAC"). Tropicana's slot hold percentage was 9.6% and 9.5% for the years ended December 31, 2015 and 2014, respectively. Tropicana's table game hold percentagewas 16.8% and 17.6% for the years ended December 31, 2015 and 2014, respectively.Net revenues from Tropicana AC comprised approximately 40% of our Gaming segment's net revenues for each of the years ended December 31, 2015 and2014. Net revenue for Tropicana AC increased for the year ended December 31, 2015 as compared to the corresponding prior year period primarily due toincreased customer volumes due, in part, to the closure of four competitors in Atlantic City in 2014. Based on market data, the Atlantic City market experiencedyear-over-year declines in casino revenue of 6.5% in the year ended December 31, 2015 as compared to the prior year period; however, a comparison of year-over-year results for the remaining eight properties shows a 3.1% increase in total casino revenue in 2015 as compared to 2014. In addition, Tropicana AC casinorevenues increased due to an increase in Internet gaming, coupled with 3.6% higher slot volumes, a 7.7% increase in table games volumes and a 9.4% decrease inthe amount of promotional slot play redeemed, partially offset by a 1.1 percentage point decrease in the table hold percentage for the year ended December 31,2015 as compared to 2014.Revenues from rooms increased for the year ended December 31, 2015 as compared to the corresponding prior year period, primarily due to the acquisition ofLumière in April 2014, coupled with higher occupancy and average daily room rate at Tropicana AC, partially offset by a decrease in revenues from rooms as aresult of the sale of the River Palms property in 2014. The average daily room rate and occupancy rate across all of Tropicana's gaming properties were $85 and70%, respectively, for the year ended December 31, 2015 as compared to $79 and 66%, respectively, for the comparable prior year period.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Casino revenues are one of Tropicana's main performance indicators and account for a significant portion of its net revenues. The increase in casino revenuesfor the year ended December 31, 2014 as compared to the comparable prior year period was primarily due to an increase in consolidated gaming volumes of25.9%, primarily due to the Lumière acquisition on April 1, 2014, coupled with higher gaming volumes at Tropicana AC. Tropicana's slot hold percentage was9.5% and 9.4% for the years ended December 31, 2014 and 2013, respectively. Tropicana's table game hold percentage was 17.6% and 14.2% for the years endedDecember 31, 2014 and 2013, respectively.Net revenues from Tropicana AC comprise approximately 40% and 43% of our Gaming segment's net revenues for the year ended December 31, 2014 and2013, respectively. Tropicana AC casino revenues increased for the year ended December 31, 2014 as compared to the corresponding prior year period as a resultof increased customer volumes due, in part, to the closure of one of Tropicana AC's competitors in Atlantic City in January 2014. In addition, during the thirdquarter of 2014, three additional competitors ceased operations in Atlantic City. Based on market data, the Atlantic City market experienced year-over-year declinein casino win of 8.5% for the year ended December 31, 2014. In addition, Tropicana AC casino revenues increased primarily due to 17.9% higher slot volumes and4.3 percentage point increase in the table game hold percentage, partially offset by 16.0% lower table game volumes, including lower volumes of high-end play forthe year ended December 31, 2014. Internet gaming, which commenced in November 2013, also contributed to the increase in casino revenues.Revenues from rooms increased for the year ended December 31, 2014 as compared to the corresponding prior year period, primarily due to the acquisition ofLumière in April 2014. The average daily room rate and occupancy rate across all of Tropicana's gaming properties were $79 and 66%, respectively, for the yearended December 31, 2014 as compared to $69 and 60%, respectively, for the comparable prior year period.113MiningAs discussed in Note 3 , " Operating Units - Mining," to the consolidated financial statements, we obtained control, and consolidated, the results of FerrousResources Limited ("Ferrous Resources") during the second quarter of 2015. Ferrous Resources represents our Mining segment.Ferrous Resources' performance driver has historically been demand for raw materials from Chinese steelmakers. However, for the period June 1, 2015through December 31, 2015, our Mining segment has been concentrating on sales in its domestic market, Brazil, where the best margins are being captured. Duringthe fourth quarter of 2015, both domestic and global steel industries continued to show weakness as steel mills' utilization rates failed to recover and iron ore pricesremained weak.Net sales and cost of goods sold for the period June 1, 2015 through December 31, 2015 were $30 million and $38 million , respectively.During the period June 1, 2015 through December 31, 2015, our Mining segment sold approximately 2 million metric tons of iron, of which approximately1.8 million metric tons were sold to a single customer, a Brazilian multinational diversified metals and mining corporation and one of the largest logistics operatorsin Brazil. The average sales price for the period June 1, 2015 through December 31, 2015 was $17.25 per metric ton. Our Mining segment continues to evaluate thebest alternatives to sell its products in light of the challenging markets for iron ore.Food PackagingOur Food Packaging segment is affected by changes in foreign exchange rates. In addition to those markets in which Viskase prices its products in U.S.dollars, it prices its products in certain of its foreign operations in euros and Brazilian reals. As a result, a decline in the value of the U.S. dollar relative to localcurrencies of profitable foreign subsidiaries can have a favorable effect on Viskase's profitability. Conversely, an increase in the value of the U.S. dollar relative tothe local currencies of profitable foreign subsidiaries can have a negative effect on the profitability of our Food Packaging segment.Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014Net sales for the year ended December 31, 2015 decreased by $21 million ( 6% ) compared to the corresponding prior year period. The decrease in net saleswas due to unfavorable foreign currency translation of $27 million, unfavorable country mix of $5 million due to sales in countries that have lower average sellingprice than the global sales prices, offset in part by an increase in sales volume of $11 million.Cost of goods sold for the year ended December 31, 2015 decreased by $12 million ( 4% ) as compared to the prior year. The decrease in cost of goods soldwas due to foreign currency translation, lower raw material costs and plant efficiencies, offset in part by higher sales volumes and higher pension expense. Grossmargin as a percentage of net sales was 24% and 25% for 2015 and 2014, respectively.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Net sales for the year ended December 31, 2014 decreased by $6 million (2%) compared to the prior year. The decrease in net sales was due to $4 millionattributable to sales volume and $2 million attributable to foreign currency translation.Cost of goods sold for the year ended December 31, 2014 decreased by $10 million (4%) as compared to the prior year. While cost of goods sold decreasedprimarily due to lower sales volume, gross margin as a percentage of net sales was 25% and 23% for 2014 and 2013, respectively. The improvement in the grossmargin as a percent of net sales over the comparable period was due to improved plant performance.Real EstateReal Estate revenues and expenses include results from club operations, sales of residential units, and rental income and expenses, including income fromfinancing leases. Sales of residential units are included in net sales in our consolidated financial statements. Results from club and rental operations, includingfinancing lease income, are included in other revenues from operations in our consolidated financial statements. During the year ended December 31, 2015 , wesold 14 commercial rental properties and Oak Harbor development and operations (which historically was operated as part of Grand Harbor), recognizing anaggregate gain of $40 million which is included in other income, net in our condensed consolidated statements of operations.114Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014Revenues from our real estate operations for each of the years ended December 31, 2015 and 2014 are substantially derived from our club and rentaloperations, including the gain on sale of various properties previously leased to others. Revenues from sales of residential units in our real estate developmentoperations represent 11% and 15% of total Real Estate revenues for the years ended December 31, 2015 and 2014, respectively.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Revenues from our real estate operations for each of the years ended December 31, 2014 and 2013 are substantially derived from our club and rentaloperations. Revenues from sales of residential units in our real estate development operations represent 15% and less than 5% of total Real Estate revenues for theyears ended December 31, 2014 and 2013, respectively.Home FashionThe business of WestPoint Home LLC ("WPH") is significantly influenced by the overall economic environment, including consumer spending, at the retaillevel, for home textile products. Many of the larger retailers are customers of WPH. WPH will continue to realign its manufacturing operations and streamline itsmerchandising, sales and customer service divisions to improve its cost structure and better serve its customers. Given the uncertainty and volatility in themacroeconomic conditions, we cannot predict if WPH's financial performance will continue to improve.Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014Net sales for 2015 increased by $17 million ( 10% ) compared to 2014. The increase was primarily due to higher sales volume. Cost of goods sold for 2015increased by $11 million ( 7% ) compared to 2014. The increase was primarily due to higher sales volume. Gross margin for 2015 increased by $6 million ( 25% )compared to 2014. Gross margin as a percentage of net sales was 16% for 2015 as compared to 14% for 2014. The improvement was primarily due to highermargins on more profitable programs and customers.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Net sales for 2014 decreased by $8 million (4%) compared to 2013. The decrease was primarily due to reduction in sales volume in certain low marginprograms. Cost of goods sold for 2014 decreased by $9 million (6%) compared to 2013. The decrease was primarily due to lower sales volume. Gross margin for2014 increased by $1 million (4%) compared to 2013. Gross margin as a percentage of net sales was 14% for 2014 as compared to 12% for 2013. Theimprovement was primarily due to higher margins on more profitable programs and customers.Holding CompanyYear Ended December 31, 2015 Compared to the Year Ended December 31, 2014Net gain from investment activities was $18 million for the year ended December 31, 2015 as compared to a loss of $137 million for the corresponding prioryear period. The net gain from investment activities for the year ended December 31, 2015 was attributable to certain securities held by the Holding Company. Thenet loss from investment activities for the year ended December 31, 2014 includes realized and unrealized losses from certain derivative swaps that were assignedto the Holding Company from the Investment segment during August 2013. These derivative swaps were closed out during the third quarter of 2014. See Note 7 , "Financial Instruments - Investment Segment and Holding Company," to the consolidated financial statements for further discussion.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Net loss from investment activities was $137 million for the year ended December 31, 2014 as compared to $158 million for the corresponding prior yearperiod. The net loss from investment activities for the year ended December 31, 2014 and 2013 include realized and unrealized losses from certain derivativeswaps that were assigned to the Holding Company from the Investment segment during August 2013. These derivative swaps were closed out during 2014. SeeNote 7 , " Financial Instruments - Investment Segment and Holding Company," to the consolidated financial statements for further discussion. In addition, therewere unrealized losses related to other securities held by the Holding Company.115Other Consolidated Results of OperationsOther Income, NetYear Ended December 31, 2015 Compared to the Year Ended December 31, 2014Our consolidated other income, net for the year ended December 31, 2015 and 2014 was $75 million and $182 million , respectively. Equity earnings fromnon-consolidated affiliates, primarily from our Automotive segment, were $62 million and $50 million for the years ended December 31, 2015 and 2014,respectively. In addition, our Energy segment recorded (loss) gains on certain derivative contracts of $(29) million and $186 million for the years endedDecember 31, 2015 and 2014, respectively. Included in our consolidated other income, net was a loss on extinguishment of debt of $162 million for the year endedDecember 31, 2014. See Note 7 , " Financial Instruments ," and Note 16 , " Other Income, Net ," to the consolidated financial statements for further discussion.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Our consolidated other income (loss), net for the year ended December 31, 2014 and 2013 was $182 million and $21 million, respectively. Equity earningsfrom non-consolidated affiliates, primarily from our Automotive segment, were $50 million and $26 million the years ended December 31, 2014 and 2013,respectively. In addition, our Energy segment recorded gains on certain derivative contracts of $186 million and $57 million for the years ended December 31,2014 and 2013, respectively. Included in our consolidated other income (loss), net was a loss on extinguishment of debt of $162 million for the year endedDecember 31, 2014. See Note 7 , " Financial Instruments ," and Note 16 , " Other Income, Net ," to the consolidated financial statements for further discussion.Selling, General and AdministrativeYear Ended December 31, 2015 Compared to the Year Ended December 31, 2014Our consolidated selling, general and administrative expenses ("SG&A") for the year ended December 31, 2015 increased by $283 million ( 17% ) ascompared to the comparable prior year period. The increase was primarily due to an increase of $70 million from our Investment segment was largely attributableto higher compensation expense related to certain investment related performance, an increase of $176 million from our Automotive segment primarily due to theinclusion of the acquisition of Affinia Group Inc., the acquisition of certain business assets of Honeywell International Inc., and the IEH Auto acquisition, anincrease of $11 million from our Gaming segment primarily due to the inclusion of the Lumière acquisition, and an increase of $12 million from our Miningsegment primarily due to the inclusion of the acquisition of Ferrous Resources effective June 1, 2015. In addition, there was a a net increase in our other segmentsand Holding Company of $14 million .Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Our consolidated SG&A for the year ended December 31, 2014 increased by $208 million (15%) as compared to the comparable prior year period. Theincrease was primarily due to an increase of $89 million from our Gaming segment primarily due to inclusion of the Lumière acquisition during the second quarterof 2014, $76 million from our Automotive segment primarily due to the recognition of an OPEB curtailment gain during the second quarter of 2013 (whichreduced SG&A in 2013), and the inclusion of the Affinia and Honeywell acquisitions during the second quarter and third quarter of 2014, respectively, and anincrease of $48 million from our Investment segment due to higher compensation expense attributable to a certain fund performance.RestructuringYear Ended December 31, 2015 Compared to the Year Ended December 31, 2014Our consolidated restructuring costs were $97 million and $84 million for the year ended December 31, 2015 and 2014, respectively, which were primarilyattributable to our Automotive segment in each of the respective periods as discussed below.Federal-Mogul has approved and initiated restructuring activities as a part of a broader initiative to improve operating performance and reduce costs. As such,Federal-Mogul will continue to evaluate its activities and opportunities to align its business with its executive management's strategy. Restructuring expenses forthe year ended December 31, 2015 primarily related to EMEA locations and aimed to reduce production complexities and reducing inefficiencies in indirect andfixed cost structures. Federal-Mogul expects to complete these programs in 2017 and incur additional restructuring charges of approximately $10 million . Forprograms previously initiated, Federal-Mogul expects to complete these programs in 2018 and incur additional restructuring charges of approximately $10 million.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Our consolidated restructuring costs were $84 million and $50 million for the year ended December 31, 2014 and 2013, respectively, which were primarilyattributable to our Automotive segment in each of the respective periods as discussed below.116ImpairmentYear Ended December 31, 2015 Compared to the Year Ended December 31, 2014Our consolidated impairment for the year ended December 31, 2015 increased by $653 million ( 484% ) as compared to the corresponding prior year period.The increase was primarily due to impairment of goodwill by our Automotive and Energy segments of $312 million and $253 million, respectively, during the yearended December 31, 2015. See Note 6 , " Fair Value Measurements ," and Note 8 , " Goodwill and Intangible Assets, Net - Energy," to the consolidated financialstatements for further discussion.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Our consolidated impairment for the year ended December 31, 2014 increased by $119 million (744%) as compared to the corresponding prior year period.The increase was primarily due to impairment of goodwill by our Energy segment of $103 million during the year ended December 31, 2014. See Note 6 , " FairValue Measurements ," and Note 8 , " Goodwill and Intangible Assets, Net - Energy," to the consolidated financial statements for further discussion.Interest ExpenseYear Ended December 31, 2015 Compared to the Year Ended December 31, 2014Consolidated interest expense for Icahn Enterprises increased by $307 million ( 36% ) during 2015 as compared to the corresponding prior year period. Theincrease for Icahn Enterprises Holdings was $307 million ( 36% ). The increases were primarily due to higher interest expense from our Investment segmentattributable to due to broker balances, higher interest expense from our Automotive segment due to higher outstanding debt balances on its revolver facilitycoupled with higher interest rates following the refinancing of its term loans and higher interest expense from our Railcar segments due to higher outstanding debtbalances.Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013Consolidated interest expense for Icahn Enterprises increased by $287 million (51%) as compared to the corresponding prior year period. The increase forIcahn Enterprises Holdings was $286 million ( 51% ). The increases were primarily due to higher interest expense from our Investment segment attributable to dueto broker balances, higher interest expense from our Automotive segment due to refinancing of its term loans in April 2014, higher interest expense from ourRailcar segment due to higher debt balances, offset in part by lower interest expense from our Energy segment due to overall lower interest rate on outstandingdebt balances and higher capitalized interest, lower interest expense from our Food Packaging segment due to lower interest rates on outstanding debt balances andlower interest on debt refinancing from the Holding Company during the first quarter of 2014.Income Tax ExpenseYear Ended December 31, 2015 Compared to the Year Ended December 31, 2014For 2015, Icahn Enterprises recorded an income tax expense of $68 million on pre-tax loss of $2.1 billion compared to an income tax benefit of $103 millionon pre-tax loss of $632 million for 2014. Icahn Enterprises' effective income tax rate was (3.3)% and 16.3% for 2015 and 2014, respectively.For 2015, Icahn Enterprises Holdings recorded an income tax expense of $68 million on pre-tax loss of $2.1 billion compared to an income tax benefit of$103 million on pre-tax loss of $631 million for 2014. Icahn Enterprises Holdings effective income tax rate was (3.3)% and 16.3% for 2015 and 2014,respectively.The difference between the effective tax rate and statutory federal rate of 35% was principally due to partnership losses not subject to taxation.For 2014, Icahn Enterprises and Icahn Enterprises Holdings recognized a deferred tax benefit on its pre-tax loss primarily due to income tax benefits recordedon a release of valuation allowance on the deferred tax assets in our Gaming segment of $196 million. Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013For 2014, Icahn Enterprises recorded an income tax benefit of $103 million on pre-tax loss of $632 million compared to an income tax benefit of $118million on pre-tax income of approximately $2.3 billion for 2013. Icahn Enterprises' effective income tax rate was 16.3% and 5.1% for 2014 and 2013,respectively.For 2014, Icahn Enterprises Holdings recorded an income tax benefit of $103 million on pre-tax loss of $631 million compared to an income tax benefit of$118 million on pre-tax income of approximately $2.3 billion for 2013. Icahn Enterprises Holdings' effective income tax rate was 16.3% and (5.1)% for 2014 and2013, respectively.117The difference between the effective tax rate and statutory federal rate of 35% was principally due to changes in valuation allowances and partnership incomenot subject to taxation, as such taxes are the responsibility of the partners.For 2014, Icahn Enterprises and Icahn Enterprises Holdings recognized a deferred tax benefit on its pre-tax loss primarily due to income tax benefits recordedon a release of valuation allowance on the deferred tax assets in our Gaming segment of $196 million. Our Gaming segment has federal net operating loss ("NOL") carryforwards pursuant to the purchase of Adamar of New Jersey, Inc. (“Adamar”). InternalRevenue Code Section 382 (“Code 382”) places certain limitations on the annual amount of NOL carryforwards that can be utilized when a change of ownershipoccurs. Our Gaming segment believes its purchase of Adamar was a change in ownership pursuant to Code 382. As a result of the annual limitation, the NOLcarryforward amount available to be used in future periods was $161 million and will begin to expire in the year 2028 and forward. As of March 8, 2010,Tropicana had various net deferred tax assets made up primarily of the expected future tax benefit of net operating loss carryforwards and excess tax basis not yetdeductible for tax purposes. A valuation allowance was provided in full against these net deferred tax assets upon emergence from bankruptcy. During the yearended December 31, 2014, our Gaming segment reversed the valuation allowance related to the net deferred tax assets by $196 million. The reduction in thevaluation allowance was a result of our Gaming segment analyzing all positive and negative evidence and concluding that it was more likely than not to realize thebenefit of this portion of its net deferred tax assets. The reduction in the valuation allowance was recorded as an income tax benefit during the year endedDecember 31, 2014.Liquidity and Capital ResourcesHolding CompanyAs of December 31, 2015 , our Holding Company had investments in the Investment Funds with a total fair market value of approximately $3.4 billion . As ofDecember 31, 2015 , our Holding Company had cash and cash equivalents of $166 million and total debt of approximately $5.5 billion .We are a holding company. Our cash flow and our ability to meet our debt service obligations and make distributions with respect to depositary units likelywill depend on the cash flow resulting from divestitures, equity and debt financings, interest income, returns on our interests in the Investment Funds and thepayment of funds to us by our subsidiaries in the form of loans, dividends and distributions. We may pursue various means to raise cash from our subsidiaries. Todate, such means include receipt of dividends and distributions from subsidiaries, obtaining loans or other financings based on the asset values of subsidiaries, orselling debt or equity securities of subsidiaries through capital markets transactions. To the degree any distributions and transfers are impaired or prohibited, ourability to make payments on our debt or distributions on our depositary units could be limited. The operating results of our subsidiaries may not be sufficient forthem to make distributions to us. In addition, our subsidiaries are not obligated to make funds available to us, and distributions and intercompany transfers fromour subsidiaries to us may be restricted by applicable law or covenants contained in debt agreements and other agreements.As of December 31, 2015 , based on covenants in the indenture governing our senior notes, we are unable to incur additional indebtedness. See Note 10 , “Debt ,” to the consolidated financial statements for additional information concerning credit facilities for us and our subsidiaries.CVR Dividends and CVR Refining DistributionsOn January 24, 2013, the board of directors of CVR adopted a quarterly cash dividend policy. CVR began paying regular quarterly dividends in the secondquarter of 2013. Dividends are subject to change at the discretion of CVR's board of directors and may change from quarter to quarter. In addition, the currentpolicy of the respective board of directors of CVR Refining and CVR Partners is to distribute all of the respective available cash of CVR Refining and CVRPartners each quarter. CVR Refining and CVR Partners do not have a legal obligation to pay distributions and there is no guarantee that they will pay anydistributions on the units in any quarter.As we currently own approximately 82.0% of the common shares of CVR, the majority of CVR's dividend will directly upstream to us. For the years endedDecember 31, 2015 and 2014, we received an aggregate of $161 million and $374 million, respectively, in dividends from CVR and distributions from CVRRefining. Subsequent to December 31, 2015 , CVR declared a quarterly dividend which will result in an additional $36 million in dividends paid to us in the firstquarter of 2016.Distributions on Depositary UnitsOn February 11, 2013, we announced that the board of directors of our general partner approved a modification to our distribution policy to provide for anincrease in the annual distribution from $1.40, comprised of $0.40 in cash and $1.00 in depositary units, to $4.00 per depositary unit, payable in either cash oradditional depositary units, at the election of each118depositary unitholder. On May 29, 2013, the board of directors of our general partner further modified our distribution policy to increase our annual distributionfrom $4.00 per depositary unit to $5.00 per depositary unit. Further, on March 3, 2014, the board of directors of our general partner announced an increase in ourannualized distribution from $5.00 per depositary unit to $6.00 per depositary unit.On February 23, 2016 , the board of directors of the general partner of Icahn Enterprises declared a quarterly distribution in the amount of $1.50 perdepositary unit, which will be paid on or about April 12, 2016 to depositary unitholders of record at the close of business on March 7, 2016 . Depositaryunitholders will have until March, 31 2016 to make an election to receive either cash or additional depositary units; if a holder does not make an election, it willautomatically be deemed to have elected to receive the dividend in cash. Depositary unitholders who elect to receive additional depositary units will receive unitsvalued at the volume weighted average trading price of the units on NASDAQ during the 5 consecutive trading days ending April 7, 2016 . No fractionaldepositary units will be issued pursuant to the distribution payment. Icahn Enterprises will make a cash payment in lieu of issuing fractional depositary units to anyholders electing to receive depositary units. Any holders that would only be eligible to receive a fraction of a depositary unit based on the above calculation willreceive a cash payment.During 2015, we declared four quarterly distributions aggregating $6.00 per depositary unit. Depositary unitholders were given the option to make an electionto 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 receivethe distributions in cash. All four distributions declared in 2015 were paid in 2015. As a result of the above declared distributions, during 2015 we distributed anaggregate 8,337,645 of Icahn Enterprises' depositary units to those Depositary unitholders who elected to receive such distributions in additional depositary units.Additionally, during 2015 we paid $114 million to those Depositary unitholders who had elected to receive such distributions in cash.During 2015, Mr. Icahn and his affiliates elected to receive a majority of their proportionate share of these distributions in depositary units. Mr. Icahn and hisaffiliates owned approximately 89.0% of Icahn Enterprises' outstanding depositary units as of December 31, 2015 . Mr. Icahn and his affiliates have indicated thatit is their present intention to elect to continue to receive the increase in Icahn Enterprises’ cash distribution in additional depositary units for the foreseeable future.The declaration and payment of distributions is reviewed quarterly by Icahn Enterprises GP's board of directors based upon a review of our balance sheet andcash flow, the ratio of current assets to current liabilities, our expected capital and liquidity requirements, the provisions of our partnership agreement andprovisions in our financing arrangements governing distributions, and keeping in mind that limited partners subject to U.S. federal income tax have recognizedincome on our earnings even if they do not receive distributions that could be used to satisfy any resulting tax obligations. The payment of future distributions willbe determined by the board of directors quarterly, based upon the factors described above and other factors that it deems relevant at the time that declaration of adistribution is considered. Payments of distributions are subject to certain restrictions, including certain restrictions on our subsidiaries which limit their ability todistribute dividends to us. There can be no assurance as to whether or in what amounts any future distributions might be paid.119BorrowingsDebt consists of the following: Icahn Enterprises December 31, 2015 2014 (in millions)5.875% senior unsecured notes due 2022 - Icahn Enterprises/Icahn Enterprises Holdings$1,339 $1,3376.00% senior unsecured notes due 2020 - Icahn Enterprises/Icahn Enterprises Holdings1,707 1,7084.875% senior unsecured notes due 2019 - Icahn Enterprises/Icahn Enterprises Holdings1,271 1,2703.50% senior unsecured notes due 2017 - Icahn Enterprises/Icahn Enterprises Holdings1,173 1,171Debt facilities - Automotive2,974 2,584Debt facilities - Energy625 625Debt and credit facilities - Railcar2,684 2,133Credit facilities - Gaming292 295Credit facilities - Food Packaging270 272Other298 193 $12,633 $11,588See Note 10 , “ Debt ,” to the consolidated financial statements contained elsewhere in this Report for additional information concerning terms, restrictionsand covenants of our debt. As of December 31, 2015 , we are in compliance with all debt covenants.Contractual Commitments and ContingenciesThe following table reflects, at December 31, 2015 , our contractual cash obligations, subject to certain conditions, due over the indicated periods: 2016 2017 2018 2019 2020 Thereafter Total (in millions)Debt obligations$779 $1,563 $1,189 $1,619 $2,050 $5,378 $12,578Capital lease obligations27 7 5 5 3 38 85Interest payments565 524 492 417 377 834 3,209Pension and other post-employment benefitplans97 100 86 82 84 313 762Operating lease obligations104 88 82 55 48 156 533Purchase obligations198 151 124 124 108 727 1,432Letters of credit68 — — — — — 68Total$1,838 $2,433 $1,978 $2,302 $2,670 $7,446 $18,667In addition to the amounts in the table above, our Energy segment has $28 million in standby letters of credit to secure transportation services for crude oil.Certain of PSC Metals' and Federal-Mogul's facilities are environmentally impaired. PSC Metals and Federal-Mogul have estimated their liability toremediate these sites to be $29 million and $14 million , respectively, at December 31, 2015 . Additionally, Federal-Mogul has identified sites with contractualobligations and sites that are closed or expected to be closed120and sold in connection with its restructuring activities and has accrued $16 million as of December 31, 2015 , primarily related to removing hazardous materials inbuildings. For further discussion regarding these commitments, among others, see Note 17 , “ Commitments and Contingencies ,” to the consolidated financialstatements.As discussed in Note 5 , “ Investments and Related Matters ,” to the consolidated financial statements, we have contractual liabilities of $ 794 million relatedto securities sold, not yet purchased as of December 31, 2015 . This amount has not been included in the table above as maturity is not subject to a contract andcannot be properly estimated.As further discussed below, in February 2016, ARI repaid amounts outstanding under the ARI Revolving Loans (as defined below) in full or $100 million.The contractual commitment table above excludes this transaction.Off-Balance Sheet ArrangementsWe have off-balance sheet risk related to investment activities associated with certain financial instruments, including futures, options, credit default swapsand securities sold, not yet purchased. For additional information regarding these arrangements, refer to Note 7 , “ Financial Instruments ,” to the consolidatedfinancial statements contained elsewhere in this Report.Consolidated Cash FlowsThe following table summarizes cash flow information for the year ended December 31, 2015 and cash and cash equivalents as of December 31, 2015 foreach of Icahn Enterprises' operating segments and the Holding Company: Year Ended December 31, 2015 December 31, 2015 Net Cash (Used In) Provided By Cash and CashEquivalents OperatingActivities InvestingActivities FinancingActivities (in millions)Investment$(136) $— $240 $10Automotive60 (804) 474 201Energy504 (151) (214) 765Metals33 (23) (1) 12Railcar381 (506) 433 623Gaming105 (83) (1) 217Mining(29) 5 19 14Food Packaging25 (22) (4) 37Real Estate34 64 (4) 19Home Fashion7 (4) — 14Holding Company(270) (827) (116) 166 $714 $(2,351) $826 $2,078The consolidated cash flows of Icahn Enterprises Holdings and Icahn Enterprises are substantially the same. The minor differences between Icahn EnterprisesHoldings' and Icahn Enterprises' consolidated statements of cash flows primarily relate to non-cash charges for interest expense which is presented in net cashflows used in operating activities. Therefore, we discuss only the consolidated cash flows of Icahn Enterprises below.Operating ActivitiesNet cash provided by operating activities for 2015 of $714 million was primarily attributable to our Energy, Railcar and Gaming segments, offset in part bynet cash used in operating activities attributable to our Investment segment and the Holding Company. Our Energy, Railcar and Gaming segments net cashprovided by operating activities was primarily due to earnings after adjusting for non-cash charges for depreciation, amortization and impairment.121Our Investment segment had net cash used in operating activities of $136 million primarily relating to its investment transactions. Additionally, our HoldingCompany had net cash used in operating activities of $270 million primarily due to payments of interest expense on its debt.Investing ActivitiesNet cash used in investing activities for 2015 was primarily due to consolidated capital expenditures incurred by our subsidiaries and acquisitions of business.Our Railcar segment had capital expenditures of $522 million , of which $484 million was for the manufacturing or purchase of railcars for its leasing operations.Additionally, our Automotive and Energy segments had capital expenditures of $449 million and $219 million , respectively.Additionally, during 2015 we acquired certain businesses within our Automotive segment as well as acquired Ferrous Resources, which constitutes ourMining segment. Also, during 2015 our Holding Company purchased certain investments, including a non-controlling interest in Pep Boys, as discussed earlier,and which we subsequently acquired the entire company in February 2016. See Note 3 , " Operating Units - Automotive," to the consolidated financial statementsfor further discussion regarding thesse acquisition.Financing ActivitiesNet cash provided by financing activities for 2015 was primarily attributable to certain debt refinancing and draw down on revolver facilities at our Railcarand Automotive segments, resulting in approximately $1.0 billion in net proceeds. Additionally, our Investment segment had capital contributions of $276 millionfrom affiliates of Mr. Icahn.During 2015, we paid dividends and distributions of $252 million to non-controlling interests in certain of our subsidiaries within our Energy and Railcarsegments, as well as aggregate distributions to our general partner and LP unitholders of $116 million.Discussion of Segment Liquidity and Capital ResourcesInvestmentAs of December 31, 2015 , the Investment Funds' net notional exposure was -25%. The Investment Funds' long exposure was 199% (193% long equity and6% long credit) and the Investment Funds' short exposure was 224% (184% short equity and 40% short credit and other short exposure). The notional exposurerepresents the ratio of the notional exposure of the Investment Funds' invested capital to the net asset value of the Investment Funds at December 31, 2015 .Of our long exposure of 199% , the fair value of our long positions (with certain adjustments) represented 193% of our long exposure. The notional value ofour long derivative positions, which primarily included single name equity swaps and single name OTC equity forward contracts, represented 6% of our longexposure.Of our short exposure of 224% , the fair value of our short positions represented 11% of our short exposure. The notional value of our short derivativepositions, which primarily included short broad market credit default swap contracts and short broad market index swap derivative positions, represented 213% ofour short exposure.With respect to both our long positions that are not notionalized (193% long) and our short positions that are not notionalized (11% short), each 1% change inexposure as a result of purchases or sales (assuming no change in value) would have a 1% impact on our cash and cash equivalents. Changes in exposure as a resultof purchases and sales as well as adverse changes in market value would also have an effect on funds available to us pursuant to prime brokerage lines of credit.With respect to the notional value of our short derivative swap positions (213% short exposure), our liquidity would decrease by the balance sheet unrealizedloss if we were to close the positions at year end prices. This would be offset by a release of restricted cash balances collateralizing these positions as well as anincrease in funds available to us pursuant to certain prime brokerage lines of credit. If we were to increase our short exposure by adding to these short positions, wewould be required to provide cash collateral equal to a small percentage of the initial notional value at counterparties that require cash as collateral and then postadditional collateral equal to 100% of the mark to market on adverse changes in fair value. For our counterparties who do not require cash collateral, fundsavailable from lines of credit would decrease.The Investment Funds historically have had access to significant amounts of cash available from prime brokerage lines of credit, subject to customary termsand market conditions.122AutomotiveFederal-MogulOn April 15, 2014, Federal-Mogul entered into a tranche B term loan facility (the “Tranche B Facility”) and a tranche C term loan facility (the “Tranche CFacility,” and together with the Tranche B Facility, the “Federal-Mogul Term Facilities”), and assumed all of the obligations of Federal-Mogul Corporation withrespect to the Federal-Mogul Replacement Revolving Facility.The Federal-Mogul Term Facilities, among other things, (i) provide for aggregate commitments under the Tranche B Facility of $700 million with a maturitydate of April 15, 2018, (ii) provide for aggregate commitments under the Tranche C Facility of approximately $1.9 billion with a maturity date of April 15, 2021,(iii) increase the interest rates applicable to the Federal-Mogul Term Facilities, (iv) provide that for all outstanding letters of credit there is a correspondingdecrease in borrowings available under the Federal-Mogul Replacement Revolving Facility, (v) provide that in the event that as of a particular determination datemore than $700 million aggregate principal amount of existing term loans and certain related refinancing indebtedness will become due within 91 days of suchdetermination date, the Federal-Mogul Replacement Revolving Facility will mature on such determination date, (vi) provide for additional incrementalindebtedness, secured on a pari passu basis, of an unlimited amount of additional indebtedness if Federal-Mogul meets a financial covenant incurrence test, and(vii) amend certain other restrictive covenants. Pursuant to the Federal-Mogul Term Facilities, Federal-Mogul Holdings Corporation assumed all of the obligationsof Federal-Mogul Corporation with respect to the Federal-Mogul Replacement Revolving Facility.See Note 10 , “ Debt - Automotive," to the consolidated financial statements for further discussion regarding Federal-Mogul's credit facilities.As of December 31, 2015 and 2014, the borrowing availability under the Federal-Mogul Replacement Revolving Facility was $170 million and $516 million ,respectively. As of December 31, 2015 , the outstanding balance on the Federal-Mogul Replacement Revolving Facility was $340 million . As of December 31,2014, there were no borrowings outstanding under the Federal-Mogul Replacement Revolving Facility. Federal-Mogul had $40 million and $34 million of lettersof credit outstanding as of December 31, 2015 and 2014, respectively, under Federal-Mogul's term loan credit facility. To the extent letters of credit are issuedunder the Federal-Mogul Replacement Revolving Facility there will be a corresponding decrease in borrowings available under this facility.As of December 31, 2015 , Federal-Mogul had $194 million of cash and cash equivalents, of which $95 million was held by foreign subsidiaries. Inaccordance with Financial Accounting Standards Board ("FASB") ASC 740-30-25-17 through 19, Federal-Mogul asserts that these funds are indefinitelyreinvested due to operational and investing needs of the foreign locations. Furthermore, Federal-Mogul will accrue any applicable taxes in the period when it nolonger intends to indefinitely reinvest these funds. Federal-Mogul would expect that the impact on cash taxes would be immaterial due to: the availability of netoperation loss carryforwards and related valuation allowances; earnings considered previously taxed; and applicable tax treaties.Federal-Mogul's subsidiaries in Brazil, France, Germany, Italy, Japan and the United States are party to accounts receivable factoring and securitizationfacilities. Gross accounts receivable transferred under these facilities were $408 million and $306 million as of December 31, 2015 and 2014, respectively. Ofthose gross amounts, $401 million and $293 million , respectively, qualify as sales as defined in FASB ASC Topic 860, Transfers and Servicing . The remainingtransferred receivables were pledged as collateral and accounted for as secured borrowings and recorded in the consolidated balance sheets within accountsreceivable, net and debt. Proceeds from the transfers of accounts receivable qualifying as sales were $1.6 billion , $1.7 billion and $1.5 billion for the years endedDecember 31, 2015 , 2014 and 2013, respectively.Certain of the facilities contain terms that require Federal-Mogul to share in the credit risk of the sold receivables. The maximum exposures to Federal-Mogulassociated with certain of these facilities' terms were $11 million and $17 million at December 31, 2015 and 2014, respectively.Federal-Mogul estimates its 2016 capital expenditures to be in the range of $390 million to $440 million.IEH AutoOn November 25, 2015, IEH Auto entered into a senior secured asset based revolving credit facility (the "IEH Auto ABL Credit Facility") for $125 million.On January 25, 2016, the ABL Credit Facility was amended and restated to increase the revolver commitments to $210 million. As of December 31, 2015, the IEHAuto ABL Facility had a balance of $75 million and $3 million in letters of credit. As of December 31, 2015, the availability on the IEH Auto ABL Credit Facilitywas $30 million.123As of December 31, 2015 IEH Auto was in compliance with the covenants of the IEH Auto ABL Facility. See Note 10 , "Debt - Automotive," to the consolidatedfinancial statements for further discussion regarding this credit facility.EnergyAs of December 31, 2015 , CVR Refining and its subsidiaries had availability under the Amended and Restated ABL Credit Facility of $290 million and hadletters of credit outstanding of $28 million . Availability under the Amended and Restated ABL Credit Facility was limited by borrowing base conditions as ofDecember 31, 2015 . In addition, as of December 31, 2015 , CVR Partners had $25 million availability under its revolving credit facility, with an uncommittedincremental facility of up to $50 million.On October 23, 2012, CVR Refining LLC and its wholly-owned subsidiary, Coffeyville Finance Inc., completed a private offering of $500 million inaggregate principal amount of 6.50% Senior Notes due 2022 (the "2022 Notes"). The net proceeds from the offering of the 2022 Notes were used to purchasecertain first lien secured notes due 2015 through a tender offer and settled redemption in the fourth quarter of 2012.See Note 10 , “ Debt - Energy," to the consolidated financial statements for further discussion regarding CVR's credit facilities, including the Amended andRestated ABL Credit Facility.On January 24, 2013, the board of directors of CVR adopted a quarterly cash dividend policy. CVR began paying regular quarterly dividends in the secondquarter of 2013. Dividends are subject to change at the discretion of CVR's board of directors and may change from quarter to quarter. In addition, the currentpolicy of the respective board of directors of CVR Refining and CVR Partners is to distribute all of the respective available cash of CVR Refining and CVRPartners each quarter. CVR Refining and CVR Partners do not have a legal obligation to pay distributions and there is no guarantee that they will pay anydistributions on the units in any quarter.For the years ended December 31, 2015 and 2014, we received an aggregate of $161 million and $374 million, respectively, in dividends from CVR anddistributions from CVR Refining, including one special dividend during 2014. Subsequent to December 31, 2015 , CVR declared a quarterly dividend which willresult in an additional $36 million in dividends and distributions paid to us in the first quarter of 2016.CVR divides the petroleum business and the nitrogen fertilizer business' capital spending needs into two categories: maintenance and growth. Maintenancecapital spending includes only non-discretionary maintenance projects and projects required to comply with environmental, health and safety regulations. CVRundertakes discretionary capital spending based on the expected return on incremental capital employed. Discretionary capital projects generally involve anexpansion of existing capacity, improvement in product yields, and/or a reduction in direct operating expenses. Major scheduled turnaround expenses are expensedwhen incurred.CVR estimates that its aggregate capital spending in 2016 will be approximately $220 million.RailcarIn January, 2015, ARI refinanced its lease fleet financing facilities to, among other things, increase the aggregate borrowings thereunder. In connection withthe refinancing, Longtrain Leasing III LLC ("Longtrain Leasing III") completed a private placement of $626 million in aggregate principal amount of notesconsisting of $250 million in aggregate principal amount of its 2.98% fixed rate secured railcar equipment notes, Class A-1 ("ARI Class A-1 Notes") and $376million in aggregate principal amount of its 4.06% fixed rate secured railcar equipment notes, Class A-2 ("ARI Class A-2 Notes", and collectively with the ARIClass A-1 Notes, the "ARI 2015 Notes"). Of the aggregate principal amount, $409 million was used to refinance ARI's lease fleet financing facilities, resulting innet proceeds of $212 million. The ARI 2015 Notes have a legal final maturity date of January 17, 2045 and an expected principal repayment date of January 15,2025.In December 2015, ARI completed a financing of its railcar lease fleet with availability of up to $200 million under a credit agreement ("2015 ARI CreditAgreement"). The 2015 ARI Credit Agreement contains an incremental borrowing provision under which ARI, as debtor and subject to the conditions set forth inthe credit agreement, has the right but not the obligation to increase the amount of the facility in an aggregate amount of up to $100 million (the amounts extendedunder the 2015 ARI Credit Agreement, inclusive of any amounts extended under the incremental facility, the “ARI Revolving Loans”), to a maximum principalamount of $300 million. ARI may use the proceeds of the ARI Revolving Loans to finance the manufacturing of railcars on an ongoing basis, to pay relatedtransaction costs, fees and expenses in connection with the 2015 ARI Credit Agreement, to finance ongoing working capital requirements and for other generalcorporate purposes. The initial ARI Revolving Loan obtained at closing amounted to approximately $100 million, net of fees and expenses. In February 2016,124ARI repaid amounts outstanding under the ARI Revolving Loans in full and as of the date of this Report, ARI has borrowing availability of $200 million under theARI Revolving Loans.See Note 10 , "Debt - Railcar," to the consolidated financial statements for further discussion regarding these refinancings.Additionally, our Railcar segment expects its future cash flows from operations could be impacted by the state of the credit markets and the overall economy,the number of our Railcar segment's railcar orders and shipments and its production rates. Our Railcar segment's future liquidity may also be impacted by thenumber of new railcar orders leased versus sold.Our Railcar segment's current capital expenditure plans for 2016 include projects that our Railcar segment expects will expand capabilities, maintainequipment, improve efficiencies and reduce costs. Our Railcar segment also plans to increase its railcar lease fleet in 2016 to meet customer demand for leasedrailcars that have been ordered. Capital expenditures for 2016 are currently projected to be approximately $117 million, which includes expected additions to ourRailcar segment's lease fleet of approximately $80 million.On July 28, 2015, ARI's board of directors authorized the repurchase of up to $250 million of its outstanding common stock ("ARI Stock RepurchaseProgram"). The ARI Stock Repurchase Program will end upon the earlier of the date on which it is terminated by ARI's board of directors or when all authorizedrepurchases are completed. The timing and amount of stock repurchases, if any, will be determined based upon ARI's evaluation of market conditions and otherfactors. The ARI Stock Repurchase Program may be suspended, modified or discontinued at any time and ARI has no obligation to repurchase any amount of itscommon stock under the ARI Stock Repurchase Program. Under the ARI Stock Repurchase Program, ARI repurchased shares of its common stock during the yearended December 31, 2015 at a cost of approximately $57 million. Subsequent to December 31, 2015 , ARI repurchased additional shares of its common stock at acost of approximately $5 million.GamingTropicana's cash flows are and will continue to be affected by a variety of factors, many of which are outside of its control, including regulatory restrictions,competition and other general business conditions. Tropicana believes that it will have sufficient liquidity through a combination of available cash, credit facilitiesand cash flow from its properties to fund its cash requirements and capital expenditures for its normal operating activities.Part of Tropicana's overall strategy includes consideration of expansion opportunities in new gaming jurisdictions, underserved markets and acquisition andother strategic opportunities that may arise periodically. Tropicana may require additional funds in order to execute on such strategic growth, and may incuradditional debt or issue additional equity to finance any such transactions. We cannot assure you that Tropicana will be able to incur such debt or issue any suchadditional equity on acceptable terms or at all.In November 2013, Tropicana entered into (i) a senior secured first lien term loan facility in an aggregate principal amount of $300 million, issued at adiscount of 0.5% (the “Term Loan Facility”) and (ii) a senior secured first lien revolving credit facility in an aggregate principal amount of $15 million (the“Revolving Facility” and, together with the Term Loan Facility, the “Credit Facilities”). Commencing on December 31, 2013, the Term Loan Facility amortizes inequal quarterly installments in an amount of $750,000, with any remaining balance payable on November 27, 2020. Amounts under the Revolving Facility areavailable to be borrowed and re-borrowed until its termination on November 27, 2018. As of December 31, 2015 , the Revolving Facility was undrawn and had$15 million of availability. See Note 10 , " Debt - Gaming" in the consolidated financial statements for further discussion regarding the Credit Facilities.Tropicana estimates that its aggregate capital expenditures for 2016 will be $81 million. In addition, Tropicana estimates that it will spend approximately $25million in 2016 related to its $50 million commitment to develop a landside gaming facility at one of its properties.On July 31, 2015 Tropicana's board of directors authorized the repurchase of up to $50 million of its outstanding common stock with no set expiration date("Tropicana Stock Repurchase Program"). The Tropicana Stock Repurchase Program will end upon the earlier of the date on which the plan is terminated byTropicana's board of directors or when all authorized repurchases are completed. The timing and amount of stock repurchases, if any, will be determined basedupon Tropicana's evaluation of market conditions and other factors. The Tropicana Stock Repurchase Program may be suspended, modified or discontinued at anytime and Tropicana has no obligation to repurchase any amount of its common stock under the Tropicana Stock Repurchase Program. As of the date of this Report,Tropicana has not yet repurchased any shares of its common stock under the Tropicana Stock Repurchase Program.125Food PackagingOn January 30, 2014, Viskase entered into a credit agreement that provided for a $275 million senior secured covenant light term loan facility (“Viskase TermLoan”). The Viskase Term Loan bears interest at a LIBOR Rate plus 3.25% (with the LIBOR Rate carrying a 1.00% floor), or at a Base Rate equal to the sum of(1) the greatest of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 0.50%, (c) one-month LIBOR plus 1.0%, or (d) 2.0%, plus (2) 2.25%. The ViskaseTerm Loan has a 1% per annum amortization with a maturity date of January 30, 2021. See Note 10 , "Debt - Food Packaging," to the consolidated financialstatements for further discussion regarding this credit facility.Our Food Packaging segment estimates that its capital expenditures for 2016 will be approximately $22 million.Critical Accounting Policies and EstimatesOur significant accounting policies are described in Note 2 , “ Summary of Significant Accounting Policies ,” to the consolidated financial statements. Ourconsolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAPrequires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure ofcontingent assets and liabilities. Among others, estimates are used when accounting for valuation of investments and pension expense. Estimates used indetermining fair value measurements include, but are not limited to, expected future cash flow assumptions, market rate assumptions for contractual obligations,actuarial assumptions for benefit plans, settlement plans for litigation and contingencies, and appropriate discount rates. Estimates and assumptions are evaluatedon an ongoing basis and are based on historical and other factors believed to be reasonable under the circumstances. The results of these estimates may form thebasis of the carrying value of certain assets and liabilities and may not be readily apparent from other sources. Actual results, under conditions and circumstancesdifferent from those assumed, may differ from estimates.We believe the following accounting policies are critical to our business operations and the understanding of results of operations and affect the moresignificant judgments and estimates used in the preparation of our consolidated financial statements.Valuation of InvestmentsThe fair value of our investments, including securities sold, not yet purchased, is based on observable market prices when available. Securities owned by theInvestment Funds that are listed on a securities exchange are valued at their last sales price on the primary securities exchange on which such securities are tradedon such date. Securities that are not listed on any exchange but are traded over-the-counter are valued at the mean between the last “bid” and “ask” price for suchsecurity on such date. Securities and other instruments for which market quotes are not readily available are valued at fair value as determined in good faith by theapplicable general partner. For some investments little market activity may exist; management's determination of fair value is then based on the best informationavailable in the circumstances and may incorporate management's own assumptions and involves a significant degree of management's judgment.Impairment of Long-Lived Assets and GoodwillLong-lived assets held and used by our various operating segments and long-lived assets to be disposed of are reviewed for impairment whenever events orchanges in circumstances, such as vacancies and rejected leases and reduced production capacity, indicate that the carrying amount of an asset may not berecoverable. In performing the review for recoverability, we estimate the future cash flows expected to result from the use of the asset and its eventual disposition.If the sum of the expected future cash flows, undiscounted and without interest charges, is less than the carrying amount of the asset an impairment loss isrecognized. Measurement of an impairment loss for long-lived assets that we expect to hold and use is based on the fair value of the asset. Long-lived assets to bedisposed of are reported at the lower of carrying amount or fair value less cost to sell.Definite-lived assets held by our various segments are periodically reviewed for impairment indicators. If impairment indicators exist, we perform therequired analysis and record an impairment charge as required by applicable U.S. GAAP.Indefinite-lived intangible assets, such as goodwill and trademarks, held by our various segments are reviewed for impairment annually, or more frequently ifimpairment indicators exist. Goodwill impairment testing involves a two-step process. Step 1 compares the fair value of our reporting units to their carrying values.If the fair value of the reporting unit exceeds its carrying value, no further analysis is necessary. The reporting unit fair value is based upon consideration of variousvaluation methodologies, including guideline transaction multiples, multiples of current earnings, and projected future cash flows discounted at ratescommensurate with the risk involved. If the carrying amount of the reporting unit exceeds its fair126value, Step 2 must be completed to quantify the amount of impairment. Step 2 calculates the implied fair value of goodwill by deducting the fair value of alltangible and intangible assets, excluding goodwill, of the reporting unit, from the fair value of the reporting unit as determined in Step 1. The implied fair value ofgoodwill determined in this step is compared to the carrying value of goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, animpairment loss, equal to the difference, is recognized.The reporting unit fair values of our reporting segments are based upon consideration of various valuation methodologies, one of which is projecting futurecash flows discounted at rates commensurate with the risks involved (“Discounted Cash Flow” or “DCF”). Assumptions used in a DCF require the exercise ofsignificant judgment, including judgment about appropriate discount rates and terminal values, growth rates, and the amount and timing of expected future cashflows. The forecasted cash flows are based on current plans and for years beyond that plan, the estimates are based on assumed growth rates. We believe that ourassumptions are consistent with the plans and estimates used to manage the underlying businesses. The discount rates, which are intended to reflect the risksinherent in future cash flow projections, used in a DCF are based on estimates of the weighted-average cost of capital (“WACC”) of a market participant. Suchestimates are derived from our analysis of peer companies and consider the industry weighted average return on debt and equity from a market participantperspective.AutomotivePowertrain and Motorparts are our only Automotive segment reporting units with goodwill allocated to it. While the fair value of our Automotive segment'sPowertrain reporting unit was substantially in excess of its carrying value, the Motorparts reporting unit failed "Step 1" of the goodwill impairment analysis. Basedon "Step 2" of the goodwill impairment analysis of our Automotive segment's Motorparts reporting unit, we recorded a goodwill impairment charge of $312million for the year ended December 31, 2015. Due to the complexity in "Step 2" goodwill impairment test, we expect to finalize the assessment of our Automotivesegment's goodwill impairment during the first quarter of 2016 and any resulting difference in the amount of the impairment will be adjusted at that time.As discussed above, we recorded a goodwill impairment charge of $312 million for our Automotive segment's Motorparts reporting unit during the yearended December 31, 2015. As a result, there was $349 million of goodwill remaining in our Automotive segment's Motorparts reporting unit at December 31,2015. Moreover, as a result of our recoverability analysis, there were no indications of impairment related to long-lived assets for our Automotive segment’sMotorparts reporting unit.EnergyWe perform our annual goodwill impairment analysis as of April 30 of each year for our Energy segment, or more frequently if impairment indicators exist.The first step of the impairment analysis involves comparing the fair value of our Energy segment's assets to their respective carrying values to determine thepotential for goodwill impairment. The second step of the impairment test, if necessary, involves quantifying the level of goodwill impairment. The fair value of our Energy segment's reporting unit is based upon consideration of various valuation methodologies, including a DCF analysis and pricingmultiples of current and future earnings observed for comparable public companies. Assumptions used in a DCF require the exercise of significant judgment,including judgment about appropriate discount rates and terminal values, growth rates, and the amount and timing of expected future cash flows. The forecastedcash flows are based on current plans and for years beyond that plan, and the estimates are based on assumed growth rates. We believe that our assumptions areconsistent with the plans and estimates used to manage the underlying businesses. The discount rates, which are intended to reflect the risks inherent in future cashflow projections, used in a DCF are based on estimates of the weighted-average cost of capital (“WACC”) of a market participant. Such estimates are derived fromour analysis of peer companies and consider the industry weighted average return on debt and equity from a market participant perspective.We finalized the annual goodwill impairment test for our Energy segment during the third quarter of 2015. Based on the results of our annual goodwillimpairment test for our Energy segment, while the fair market value of our Energy segment's Petroleum reporting unit was substantially in excess of its carryingvalue, the fair market value of our Energy segment's Fertilizer reporting unit was approximately 1% in excess of its carrying value and was therefore considered atrisk for failing "Step 1" of the goodwill impairment analysis. Based on worsening sales trends for our Energy segment's Fertilizer reporting unit during the fourthquarter of 2015, we performed an interim goodwill impairment test for our Energy segment's Fertilizer reporting unit during the fourth quarter of 2015. Based onthis analysis, our Energy segment recognized a goodwill impairment charge of $253 million, which represented the full amount of the remaining goodwill allocatedto this reporting unit. Due to the complexity in "Step 2" goodwill impairment test, we expect to finalize the assessment of our Energy segment's goodwill127impairment during the first quarter of 2016 and any resulting difference in the amount of the impairment will be adjusted at that time.In connection with recording a goodwill impairment charge of $253 million , representing the full amount of the remaining goodwill allocated to our Energysegment's Fertilizer reporting unit, we also performed an impairment test for long-lived assets for our Energy segment's fertilizer business, including finite-livedintangible assets, utilizing estimates of undiscounted future cash flows based on the use of the assets for their remaining useful life for our Energy segment'sfertilizer business. The impairment test did not result in the impairment of any long-lived assets for the year ended December 31, 2015.During the fourth quarter of 2014, based on certain negative trends occurring in the energy markets, particularly with respect to the significant volatility inthe oil markets as a result of a drop in forecasted worldwide demand for crude oil supply and inventories, we determined that goodwill impairment indicatorsexisted in both of our Energy segment's Petroleum and Fertilizer reporting units. Accordingly, we performed a "Step 1" goodwill impairment analysis for ourEnergy segment's reporting units as of December 1, 2014. Our Energy segment’s petroleum reporting unit passed “Step 1” of the goodwill impairment analysis,and therefore, we did not perform “Step 2” of the goodwill impairment analysis for this reporting unit. Because our Energy segment's Fertilizer reporting unitfailed "Step 1" of the goodwill impairment analysis, we performed "Step 2" of the goodwill impairment analysis. Based on "Step 2" results of the goodwillimpairment analysis, we recognized a preliminary impairment charge of $103 million for our Energy segment's Fertilizer reporting unit for the year endedDecember 31, 2014. Due to the complexity of the "Step 2" goodwill impairment test, we finalized the assessment of our Energy segment's goodwill impairmentduring the first quarter of 2015 and noted that no additional adjustments to goodwill were required for the first quarter of 2015.Commitments and Contingencies - LitigationOn an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine thetiming and ultimate outcome of such actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or finaladjudication of such matters and whether a reasonable estimation of such probable loss, if any, can be made. In assessing probable losses, we make estimates of theamount of insurance recoveries, if any. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to theinherent uncertainties related to the eventual outcome of litigation and potential insurance recovery, it is possible that certain matters may be resolved for amountsmaterially different from any provisions or disclosures that we have previously made.Pension Plans and Other Post-employment Benefit PlansFederal-Mogul sponsors defined benefit pension plans and postretirement plans for certain employees and retirees around the world. Federal-Mogul's definedbenefit plans are accounted for on an actuarial basis, which requires the selection of various assumptions, including an expected long-term rate of return, discountrate, and mortality and mortality improvement rates of plan participants.Differences in actual experience or changes in assumptions may materially affect the pension obligations. Actual results that differ from assumptions areaccumulated in unamortized net actuarial gains and losses which are subject to amortization and expensed over future periods. The unamortized pre-tax actuarialloss on Federal-Mogul's pension plans was $532 million and $590 million at December 31, 2015 and 2014, respectively. Federal-Mogul expects to recognizeamortization expense of $15 million in 2016.Assumptions used to calculate benefit obligations as of the end of a fiscal year directly affect the expense to be recognized in future periods. The primaryassumptions affecting our accounting for employee benefits as of December 31, 2015 are as follows:•Long-term rate of return on plan assets : The required use of the expected long-term rate of return on plan assets may result in recognized returns that aregreater or less than the actual returns on those plan assets in any given year. While the development of the long-term rate of return on assets givesappropriate consideration to recent fund performance and historical returns, the assumption is designed to approximate a long-term prospective rate. Theexpected long-term rate of return used to calculate net periodic pension cost is 6.55% for U.S. plans and a weighted average of 3.52% for non-U.S. plans.•Discount rate : The discount rate reflects the effective yield on high quality fixed income securities available in the marketplace as of the measurementdate to settle pension and post-employment benefit obligations. The weighted-average discount rate used to calculate net periodic pension cost is 3.85%for U.S. pension plans and a weighted128average of 1.77% for non-U.S. plans and 3.84% for its OPEB. In calculating its benefit obligations, Federal-Mogul used a weighted-average discount rateof 4.15% for its U.S. pension plans, a weighted average discount rate of 2.72% for its non-U.S. pension plans and a discount rate of 4.18% for its OPEB.•Health care cost trend : For post-employment health care plan accounting, Federal-Mogul reviews external data and company specific historical trendsfor health care costs to determine the health care cost trend rate. The assumed health care cost trend rate used to measure next year’s post-employmenthealth care benefits is 6.97% for both health care drug costs, both declining to an ultimate trend rate of 5.00% in 2022.•Mortality Assumptions: Federal-Mogul has reviewed the mortality improvement tables published by the Society of Actuaries in the three months endedDecember 31, 2015 and determined its current assumptions are appropriate to measure its U.S. pension plans’ benefit obligations as of December 31,2015.Significant differences in actual experience or significant changes in assumptions may materially affect the pension obligations. The effects of actual resultsdiffering from assumptions and the changing of assumptions are included in unamortized net actuarial gains and losses that are subject to amortization to expenseover future periods. The unamortized pre-tax actuarial loss on Federal-Mogul's pension plans was $587 million and $685 million at December 31, 2015 and 2014,respectively. The change is due primarily to the increase in discount rates partially offset by actual asset returns being less than assumed returns.The following table illustrates the sensitivity to a change in certain assumptions for projected benefit obligations (“PBO”), associated expense and othercomprehensive loss. The changes in these assumptions have no impact on Federal-Mogul's funding requirements. Pension Benefits Other Post-EmploymentBenefits United States Plans Non-U.S. Plans Change in 2016expense ChangeinPBO Change in 2016expense ChangeinPBO Change in2016 expense Change inPBO (in millions)25 bp decrease in discount rate$(1) $32 $1 $16 — $825 bp increase in discount rate— 30 (1) (15) — (7)25 bp decrease in return on assets rate2 n/a n/a n/a n/a n/a25 bp increase in return on assets rate(2) n/a n/a n/a n/a n/aThe assumed health care trend rate has a significant impact on the amounts reported for non-pension plans. The following table illustrates the sensitivity to achange in the assumed health care trend rate: Total Service andInterest Cost APBO (in millions)100 bp increase in health care trend rate$1 $28100 bp decrease in health care trend rate(1) (24)Environmental MattersDue to the nature of certain of our operations, we may be subject to environmental remediation claims. Certain of our operations are subject to federal, state,local and foreign environmental laws and regulations concerning discharges to the air, soil, surface and subsurface waters and the generation, handling, storage,transportation, treatment and disposal of waste materials and hazardous substances. Certain of our operations are also subject to other federal, state, local andforeign laws and regulations including those that require them to remove or mitigate the effects of the disposal or release of certain materials at129various sites. While it is typically very difficult to determine the timing and ultimate outcome of such actions, if any, management uses its best judgment todetermine if it is probable that it will incur an expense related to the settlement or final adjudication of such matters and whether a reasonable estimation of suchprobable loss, if any, can be made. In assessing probable losses, management makes estimates of the amount of insurance recoveries, if any. Certain of ouroperations accrue a liability when their management believes a loss is probable and the amount of loss can be reasonably estimated. Due to the inherentuncertainties related to the eventual outcome of litigation and potential insurance recovery, it is possible that certain matters may be resolved for amountsmaterially different from any provisions or disclosures that have previously been made.It is impossible to predict precisely what effect these laws and regulations will have on our operations in the future. Compliance with environmental laws andregulations may result in, among other things, capital expenditures, costs and liabilities. Management believes, based on past experience and its best assessment offuture events, that these environmental liabilities and costs will be assessed and paid over an extended period of time. Management believes that recordedenvironmental liabilities will be adequate to cover estimated liability for exposure in respect to such matters. In the event that such liabilities were to significantlyexceed the amounts recorded, our results of operations could be materially affected.AutomotiveFederal-Mogul is a defendant in lawsuits filed, or the recipient of administrative orders issued or demand letters received, in various jurisdictions pursuant tothe Federal Comprehensive Environmental Response Compensation and Liability Act of 1980 (“CERCLA”) or other similar national, provincial or stateenvironmental remedial laws. These laws provide that responsible parties may be liable to pay for remediating contamination resulting from hazardous substancesthat were discharged into the environment by them, by prior owners or occupants of property they currently own or operate, or by others to whom they sent suchsubstances for treatment or other disposition at third party locations. Federal-Mogul has been notified by the EPA, other national environmental agencies, andvarious provincial and state agencies that it may be a potentially responsible party (“PRP”) under such laws for the cost of remediating hazardous substancespursuant to CERCLA and other national and state or provincial environmental laws. PRP designation often results in the funding of site investigations andsubsequent remedial activities.Many of the sites that are likely to be the costliest to remediate are often current or former commercial waste disposal facilities to which numerous companiessent wastes. Despite the potential joint and several liability which might be imposed on Federal-Mogul under CERCLA and some of the other laws pertaining tothese sites, its share of the total waste sent to these sites has generally been small. Federal-Mogul believes its exposure for liability at these sites is limited.Federal-Mogul has also identified certain other present and former properties at which it may be responsible for cleaning up or addressing environmentalcontamination, in some cases as a result of contractual commitments and/or federal or state environmental laws. Federal-Mogul is actively seeking to resolve theseactual and potential statutory, regulatory and contractual obligations. Although difficult to quantify based on the complexity of the issues, Federal-Mogul hasaccrued amounts corresponding to its best estimate of the costs associated with such regulatory and contractual obligations on the basis of available informationfrom site investigations and best professional judgment of consultants.Total environmental liabilities, determined on an undiscounted basis, were $14 million and $15 million at December 31, 2015 and 2014, respectively, and areincluded in accrued expenses and other liabilities in our consolidated balance sheets.Federal-Mogul believes that recorded environmental liabilities will be adequate to cover its estimated liability for its exposure in respect of such matters. Inthe event that such liabilities were to significantly exceed the amounts recorded by Federal-Mogul, our Automotive segment's results of operations could bematerially affected. At December 31, 2015 , Federal-Mogul estimates reasonably possible material additional losses, above and beyond its best estimate of requiredremediation costs as recorded, to approximate $44 million .Asset Retirement ObligationsFederal-Mogul has identified sites with contractual obligations and several sites that are closed or expected to be closed and sold. In connection with thesesites, Federal-Mogul has accrued $16 million and $24 million at December 31, 2015 and 2014, respectively, for ARO's, primarily related to anticipated costs ofremoving hazardous building materials at its facilities, and has considered impairment issues that may result from capitalization of these ARO amounts.Federal-Mogul has conditional asset retirement obligations ("CARO"), primarily related to removal costs of hazardous materials in buildings, for which itbelieves reasonable cost estimates cannot be made at this time because it does not believe it has a reasonable basis to assign probabilities to a range of potentialsettlement dates for these retirement obligations. Accordingly, Federal-Mogul is currently unable to determine amounts to accrue for CARO at such sites.130Income TaxesExcept as described below, no provision has been made for federal, state, local or foreign income taxes on the results of operations generated by partnershipactivities as such taxes are the responsibility of the partners. Our corporate subsidiaries account for their income taxes under the asset and liability method.Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amountsof existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards.Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differencesare expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includesthe enactment date.Federal-Mogul and Viskase did not record taxes on its undistributed earnings of $879 million and $66 million , respectively, at December 31, 2015 , sincethese earnings are considered to be permanently reinvested. If at some future date, these earnings cease to be permanently reinvested, Federal-Mogul and Viskasemay be subject to U.S. income taxes and foreign withholding taxes on such amounts. Determining the unrecognized deferred tax liability on the potentialdistribution of these earnings is not practicable as such liability, if any, is dependent on circumstances existing when remittance occurs.Management periodically evaluates all evidence, both positive and negative, in determining whether a valuation allowance to reduce the carrying value ofdeferred tax assets is still needed. In 2015, 2014 and 2013, we concluded, based on the projections of taxable income, that certain of our corporate subsidiariesmore likely than not will realize a partial benefit from their deferred tax assets and loss carry forwards. Ultimate realization of the deferred tax assets is dependentupon, among other factors, our corporate subsidiaries' ability to generate sufficient taxable income within the carryforward periods and is subject to changedepending on the tax laws in effect in the years in which the carryforwards are used. See Note 14 , " Income Taxes ," to the consolidated financial statements forfurther discussion regarding the reversal of our Gaming segment's deferred tax assets during the year ended December 31, 2015 .Derivative InstrumentsEnergyOur Energy segment's petroleum business uses futures contracts, options, and forward contracts primarily to reduce exposure to changes in crude oil pricesand finished goods product prices to provide economic hedges of inventory positions. Although management considers these derivatives economic hedges, thesederivative instruments do not qualify as hedges for hedge accounting purposes under FASB ASC Topic 815, Derivatives and Hedging ("FASB ASC 815"), andaccordingly are recorded at fair value in the consolidated balance sheets. Changes in the fair value of these derivative instruments are recorded in earnings as acomponent of other income, net in the period of change. The estimated fair values of forward and swap contracts are based on quoted market prices andassumptions for the estimated forward yield curves of related commodities in periods when quoted market prices are unavailable.Our Energy segment's nitrogen fertilizer business uses forward swap contracts primarily to reduce the exposure to changes in interest rates on its debt and toprovide a cash flow hedge. These derivative instruments have been designated as hedges for accounting purposes. Accordingly, these instruments are recorded atfair value in the consolidated balance sheets at each reporting period end. The actual measurement of the cash flow hedge ineffectiveness is recognized in earnings,if applicable. The effective portion of the gain or loss on the swaps is reported in accumulated other comprehensive loss in accordance with FASB ASC 815.Recently Issued Accounting Standards UpdatesIn May 2014, the FASB issued ASU No. 2014-09, creating a new topic, FASB ASC Topic 606, Revenue from Contracts with Customers , supersedingrevenue recognition requirements in FASB ASC Topic 605, Revenue Recognition . This ASU requires that an entity recognize revenue to depict the transfer ofpromised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods orservices. In addition, an entity is required to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing anduncertainty of revenue and cash flows arising from contracts with customers. This ASU was amended by ASU No. 2015-14, issued in August 2015, which deferredthe original effective date by one year; the effective date of this ASU is for fiscal years, and interim reporting periods within those years, beginning after December15, 2017, using one of two retrospective application methods. Early adoption is permitted only as of the annual reporting periods beginning after131December 15, 2016, including interim reporting periods within that reporting period. We are currently evaluating the impact of this guidance on our consolidatedfinancial position, results of operations, comprehensive income, cash flows and disclosures.In June 2014, the FASB issued ASU No. 2014-12, which amends FASB ASC Topic 718, Compensation-Stock Compensation. This ASU requires that aperformance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity shouldapply existing guidance in FASB ASC Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, theperformance target should not be reflected in estimating the grant-date fair value of the award. This ASU is effective for fiscal years, and interim reporting periodswithin those years, beginning after December 15, 2015. We believe that the adoption of this guidance will not have a material impact on our consolidated financialposition, results of operations, comprehensive income, cash flows and disclosures.In February 2015, the FASB issued ASU No. 2015-02, which amends FASB ASC Topic 810, Consolidations . This ASU amends the current consolidationguidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities. This ASU requires that limitedpartnerships and similar legal entities provide partners with either substantive kick-out rights or substantive participating rights over the general partner in order tobe considered a voting interest entity. The specialized consolidation model and guidance for limited partnerships and similar legal entities have been eliminated.There is no longer a presumption that a general partner should consolidate a limited partnership. For limited partnerships and similar legal entities that qualify asvoting interest entities, a limited partner with a controlling financial interest should consolidate a limited partnership. A controlling financial interest may beachieved through holding a limited partner interest that provides substantive kick-out rights. The standard is effective for annual periods beginning after December15, 2015. We believe that the adoption of this guidance will not have a material effect on our consolidated financial position, results of operations, comprehensiveincome, cash flows and disclosures.In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which amends FASB ASC Subtopic 835-30, Interest -Imputation of Interest. The new standard requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying valueof the debt. Given the absence of authoritative guidance within this ASU regarding debt issuance costs related to line-of-credit, the SEC staff has stated that itwould not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred issuance costs ratably over the termof the line-of-credit arrangement. The standard is effective for interim and annual periods beginning after December 15, 2015 and is required to be applied on aretrospective basis. Early adoption is permitted. We expect that the adoption of this new guidance will generally result in a reclassification of debt issuance costson our consolidated balance sheets.In April 2015, the FASB issued ASU No. 2015-06, Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions , whichamends FASB ASC Topic 260, Earnings Per Share . This ASU requires that for purposes of calculating earnings per share under the two-class method, theearnings or losses of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. In that circumstance, thepreviously reported earnings per unit of the limited partners would not change as a result of the drop down transaction. The guidance is effective for fiscal yearsbeginning after December 15, 2015, and interim periods within those fiscal years. Earlier application is permitted. The adoption of this guidance will have noimpact on our consolidated financial statements and footnote disclosures as we have historically allocated earnings or losses of a transferred business before thedate of applicable dropdown transactions to the general partner for purposes of calculating earnings per share.In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory , which amends FASB ASC Topic 330, Inventory . This ASUrequires entities to measure inventory at the lower of cost or net realizable value and eliminates the option that currently exists for measuring inventory at marketvalue. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, andtransportation. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This ASU should beapplied prospectively with earlier application permitted as of the beginning of an interim period or annual reporting period. We anticipate that the adoption of thisguidance will have minimal impact on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments , which amends FASB ASC Topic805, Business Combinations . This ASU eliminates the requirement to retrospectively adjust provisional amounts recognized at the acquisition dates of businesscombinations. Rather, this ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in thereporting period in which the adjustment amounts are determined. This ASU is effective for fiscal years beginning after132December 15, 2015, including interim periods within those fiscal years. The amendments in this ASU should be applied prospectively to adjustments to provisionalamounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. We anticipate that the adoption ofthis guidance will have minimal impact on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which amends FASB ASC Topic 740, IncomeTaxes . Current GAAP requires an entity to separate income tax liabilities and assets into current and noncurrent amounts in a classified statement of financialposition. This ASU requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effectivefor annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted as of the beginning of aninterim or annual reporting period. We have elected to early adopt this ASU for the year ended December 31, 2015 on a prospective basis. As we do not present aclassified statement of position, this ASU will not have an impact on our consolidated financial position, results of operations, comprehensive income, cash flowsand disclosures.Forward-Looking StatementsStatements included in “Management's Discussion and Analysis of Financial Condition and Results of Operations” which are not historical in nature areintended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbor provided by Section 27A of the Securities Act andSection 21E of the Securities Exchange Act of 1934, as amended, or by Public Law 104-67.Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties thatmay cause actual results to differ materially from trends, plans, or expectations set forth in the forward-looking statements. These risks and uncertainties mayinclude the risks and uncertainties described in our Annual Report on Form 10-K for the year ended December 31, 2015 .Item 7A. Quantitative and Qualitative Disclosures About Market Risk.InvestmentOur predominant exposure to market risk is related to our Investment segment and the sensitivities to movements in the fair value of the Investment Funds'investments.The fair value of the financial assets and liabilities of the Investment Funds primarily fluctuates in response to changes in the value of securities. The neteffect of these fair value changes impacts the net gains from investment activities in our consolidated statements of operations. However, the majority of these fairvalue changes are absorbed by the non-controlling interest holders in the Investment Funds. The Investment Funds' risk is regularly evaluated and is managed on aposition basis as well as on a portfolio basis. Senior members of our investment team meet on a regular basis to assess and review certain risks, includingconcentration risk, correlation risk and credit risk for significant positions. Certain risk metrics and other analytical tools are used in the normal course of businessby the General Partners.Market RiskThe Investment Funds hold investments that are reported at fair value as of the reporting date, which include securities owned, securities sold, not yetpurchased and derivatives as reported on our consolidated balance sheets. Based on their respective balances as of December 31, 2015 , we estimate that in theevent of a 10% adverse change in the fair value of these investments, the fair values of securities owned, securities sold, not yet purchased and derivatives woulddecrease by approximately $1.5 billion, $79 million and $2.6 billion, respectively. However, as of December 31, 2015 , we estimate that the impact to our share ofthe net gain from investment activities reported on our consolidated statement of operations would be significantly less than the change in fair value since we havean investment of approximately 45% in these Investment Funds, and the non-controlling interests in income would correspondingly offset approximately 55% ofthe change in fair value.Foreign Exchange Rate RiskThe Investment Funds are not materially exposed to foreign exchange risk since foreign investments are economically hedged by foreign currency forwardcontracts.Credit RiskWe and certain of our consolidated Investment Funds are subject to certain inherent risks through our investments.133Our entities typically invest excess cash in large money market funds. The money market funds primarily invest in government securities and other short-term, highly liquid instruments with a low risk of loss. The Investment Funds also maintain free credit balances with their prime brokers and in interest bearingaccounts at major banking institutions. We seek to diversify our cash investments across several accounts and institutions and monitor performance andcounterparty risk.The Investment Funds and, to a lesser extent, other entities hold derivative instruments that are subject to credit risk in the event that the counterparties areunable to meet the terms of such agreements. When the Investment Funds make such investments or enter into other arrangements where they might suffer asignificant loss through the default or insolvency of a counterparty, the General Partners monitor the credit quality of such counterparty and seek to do businesswith creditworthy counterparties. Counterparty risk is monitored by obtaining and reviewing public information filed by the counterparties and others.AutomotiveOur Automotive segment is exposed to certain global market risks, including foreign currency exchange risk, commodity price risk, and interest rate riskassociated with its debt.Foreign Currency Exchange Rate RiskFederal-Mogul has currency exposures related to buying, selling, and financing in currencies other than the local currencies in which we operate. AtDecember 31, 2015, Federal-Mogul's most significant foreign currency exposures were Brazilian real, British pound, Chinese yuan renminbi, euro, Indian rupee,and Mexican peso. Historically, Federal-Mogul has reduced its exposure through financial instruments (hedges) that provide offsets or limits to its exposures,which are opposite to the underlying transactions. Federal-Mogul did not hold any foreign currency price hedge contracts at December 31, 2015 and December 31,2014.Federal-Mogul is exposed to foreign currency risk due to the translation and remeasurement of the results of certain international operations into U.S. Dollarsas part of the consolidation process. Fluctuations in foreign currency exchange rates can therefore create volatility in the results of operations and may adverselyaffect Federal-Mogul's financial condition.Federal-Mogul recorded translation losses in accumulated other comprehensive income of $237 million and $248 million for the year ended December 31,2015 and 2014, respectively, and recorded translation losses in earnings of $3 million and $7 million for the year ended December 31, 2015 and 2014, respectively.Commodity Price RiskCommodity swaps/average rate forward contracts are executed to offset a portion of our exposure to the potential change in prices mainly for various non-ferrous metals used in the manufacturing of automotive components. The net fair value of Federal-Mogul's contracts was a liability of approximately $3 millionand approximately $1 million at December 31, 2015 and 2014, respectively. At December 31, 2015, we performed a sensitivity analysis to assess the effects of a10% adverse change in commodity prices. Based upon the analysis performed, such changes would not be expected to materially affect our consolidated financialposition, results of operations or cash flows.Interest Rate RiskFederal-Mogul's exposure to market risk associated with changes in interest rates relate primarily to its debt obligations. At December 31, 2015 and 2014,Federal-Mogul had approximately $3.1 billion and $2.7 billion, respectively, of debt which primarily bear variable interest rates. At December 31, 2015 and 2014,Federal-Mogul did not have any interest rate swap positions to manage interest rate exposures. Federal-Mogul's term loans which represent approximately $2.6billion of its debt at December 31, 2015 is not sensitive to changes in market interest rate because the market rate is substantially below the interest rate floorwithin its credit agreement. Therefore, an adverse market change in interest rates of 10% would have no effect on cash flows. Federal-Mogul's revolving line ofcredit also has variable market interest rates and the effect on cash flow from a 10% adverse change in market rates would be de minimis. Federal-Mogul'sremaining debt consists of foreign debt with primarily variable interest rates; an adverse market change in interest rates of 10% with respect to these foreign debtwould not materially affect our consolidated financial position, results of operations or cash flows.EnergyThe risk inherent in our Energy segment's market risk sensitive instruments and positions is the potential loss from adverse changes in commodity prices andinterest rates. None of our Energy segment's market risk sensitive instruments are held for trading.134Commodity Price RiskOur Energy segment's petroleum business, as a manufacturer of refined petroleum products, and the nitrogen fertilizer business, as a manufacturer of nitrogenfertilizer products, all of which are commodities, have exposure to market pricing for products sold in the future. In order to realize value from our Energysegment's processing capacity, a positive spread between the cost of raw materials and the value of finished products must be achieved (i.e., gross margin or crackspread). The physical commodities that comprise our raw materials and finished goods are typically bought and sold at a spot or index price that can be highlyvariable.Our Energy segment's petroleum business uses a crude oil purchasing intermediary, Vitol, to purchase the majority of its non-gathered crude oil inventory forthe refineries, which allows it to take title to and price its crude oil at locations in close proximity to the refineries, as opposed to the crude oil origination point,reducing its risk associated with volatile commodity prices by shortening the commodity conversion cycle time. The commodity conversion cycle time refers to thetime elapsed between raw material acquisition and the sale of finished goods. In addition, the petroleum business seeks to reduce the variability of commodity priceexposure by engaging in hedging strategies and transactions that will serve to protect gross margins as forecasted in the annual operating plan. Accordingly, thepetroleum business uses commodity derivative contracts to economically hedge future cash flows (i.e., gross margin or crack spreads) and product inventories.With regard to its hedging activities, the petroleum business may enter into, or have entered into, derivative instruments which serve to:•lock in or fix a percentage of the anticipated or planned gross margin in future periods when the derivative market offers commodity spreads that generatepositive cash flows;•hedge the value of inventories in excess of minimum required inventories; and•manage existing derivative positions related to change in anticipated operations and market conditions.Further, CVR's petroleum business intends to engage only in risk-mitigating activities directly related to its businesses. The nitrogen fertilizer business hasnot historically hedged for commodity prices.Basis Risk The effectiveness of our Energy segment's derivative strategies is dependent upon the correlation of the price index utilized for the hedging activity and thecash or spot price of the physical commodity for which price risk is being mitigated. Basis risk is a term our Energy segment uses to define that relationship. Basisrisk can exist due to several factors including time or location differences between the derivative instrument and the underlying physical commodity. The selectionof the appropriate index to utilize in a hedging strategy is a prime consideration in our Energy segment's basis risk exposure.Examples of CVR's basis risk exposure are as follows:•Time Basis - In entering over-the-counter swap agreements, the settlement price of the swap is typically the average price of the underlying commodityfor a designated calendar period. This settlement price is based on the assumption that the underlying physical commodity will price ratably over the swapperiod. If the commodity does not move ratably over the periods, then weighted-average physical prices will be weighted differently than the swap priceas the result of timing.•Location Basis - In hedging NYMEX crack spreads, CVR may be subject to location basis as the settlement of NYMEX refined products (related more toNew York Harbor cash markets) may differ from the prices of refined products in CVR's Group 3 pricing area.Price and Basis Risk Management ActivitiesIn the event CVR's inventories exceed its petroleum business' target base level of inventories, CVR may enter into commodity derivative contracts to manageprice exposure to its inventory positions that are in excess of its base level. Excess inventories typically result from plant operations, such as a turnaround or otherplant maintenance.To reduce the basis risk between the price of products for Group 3 and that of the NYMEX associated with selling forward derivative contracts for NYMEXcrack spreads, the petroleum business may enter into basis swap positions to lock the price difference. If the difference between the price of products on theNYMEX and Group 3 (or some other price benchmark as specified in the swap) is different than the value contracted in the swap, then it will receive from or oweto the counterparty the difference on each unit of product contracted in the swap, thereby completing the locking of its margin. An example of the petroleumbusiness' use of a basis swap is in the winter heating oil season. The risk associated with not hedging the basis when using NYMEX forward contracts to fix futuremargins is if the crack spread increases based on prices traded on NYMEX while135Group 3 pricing remains flat or decreases then we would be in a position to lose money on the derivative position while not earning an offsetting additional marginon the physical position based on the Group 3 pricing.From time to time, the petroleum business also holds various NYMEX positions through a third-party clearing house. At December 31, 2015 , CVR Refininghad no open commodity positions. At December 31, 2015 , CVR Refining's account balance maintained at the third-party clearing house totaled approximately $8million, which is reflected on the consolidated balance sheets in cash and cash equivalents. NYMEX transactions conducted for the year ended December 31, 2015resulted in gain on derivatives, net of approximately $3 million.CVR Refining enters into commodity swap contracts in order to fix the margin on a portion of future production. Additionally, CVR Refining may enter intoprice and basis swaps in order to fix the price on a portion of its commodity purchases and product sales. The physical volumes are not exchanged and thesecontracts are net settled with cash. The contract fair value of the commodity swaps is reflected on the consolidated balance sheets with changes in fair valuecurrently recognized in the consolidated statements of operations. At December 31, 2015 , CVR Refining had open commodity hedging instruments consisting of2.5 million barrels of crack spreads primarily to fix the margin on a portion of its future distillate production. A change of $1.00 per barrel in the fair value of thecrack spread swaps would result in an increase or decrease in the related fair values of commodity hedging instruments of $2.5 million. Additionally, atDecember 31, 2015 , the CVR Refining had open commodity hedging instruments consisting of 1.4 million barrels to fix the price on a portion of its future crudeoil purchases and the basis on a portion of its future product sales. A change of $1.00 per barrel in the fair value of the benchmark crude or product basis wouldresult in an increase or decrease in the related fair value of the commodity hedging instruments of $1.4 million. The fair value of the outstanding contracts atDecember 31, 2015 was a net unrealized gain of approximately $45 million.Interest Rate RiskAs of December 31, 2015 and prior to the expiration of the interest rate swaps on February 12, 2016, CVR Partners had exposure to interest rate risk on 50%of its $125 million floating rate term debt. A 1.0% increase over the Eurodollar floor spread of 3.5%, as specified in the credit agreement, would increase interestcost to CVR Partners by approximately $625,000 on an annualized basis, thus decreasing net income by the same amount.Subsequent to the expiration of the interest rate swaps on February 12, 2016, CVR Partners has exposure to interest rate risk on 100% of its $125 millionfloating rate debt. A 1.0% increase over the Eurodollar floor spread of 3.5%, as specified in the credit agreement, would increase interest cost to CVR Partners byapproximately $1.3 million on an annualized basis, thus decreasing net income by the same amount.The credit facility expires on April 13, 2016. CVR Partners is considering capital structure and refinancing options associated with the credit facility maturity.The credit facility is discussed in Note 10 , " Debt - Energy," and the interest rate swap agreements are discussed in Note 7 , " Financial Instruments - Energy," tothe consolidated financial statements.RailcarOur Railcar segment is exposed to price risks associated with the purchase of raw materials, especially steel and heavy castings. The cost of steel, heavycastings and all other materials used in the production of railcars represents a significant amount of the direct manufacturing costs per railcar. Given the significantvolatility in the price of raw materials, this exposure can affect the costs of production. Our Railcar segment believes that the risk to its margins and profitabilityhas been somewhat reduced by the variable pricing provisions generally included in its railcar sales contracts. These provisions adjust the purchase prices of therailcars to reflect fluctuations in the cost of certain raw materials and components and, as a result, our Railcar segment is generally able to pass on to its customersmost increases in raw material and component costs with respect to the railcars it plans to produce and deliver to them. Our Railcar segment believes that itcurrently has good supplier relationships and does not currently anticipate that material constraints will limit its production capacity. Such constraints may exist ifrailcar production were to increase beyond current levels, or other economic changes were to occur that affect the availability of certain raw materials.Our Railcar segment's financial results could be affected by changes in interest rates due to the impact those changes have on its variable rate debt obligationas of December 31, 2015 . A one percentage point increase in the rate would have had an $11 million impact on our Railcar segment's interest expense.136GamingInterest Rate RiskTropicana's primary exposure to market risk is interest rate risk associated with its Term Loan Facility that bears interest based on floating rates. Based onTropicana's borrowings as of December 31, 2015 , assuming a 1% increase over the 4.0% floor specified in its Term Loan Facility, Tropicana's annual interest costwould change by approximately $3 million.MiningCommodity Price RiskFerrous Resources’ revenues are based on the sale of iron ore fines. Our Mining segment's financial results can vary significantly as a result of fluctuations inthe market prices of iron ore. International prices for this commodity have fluctuated historically and are affected by numerous factors beyond Ferrous Resources'control. The price index that is utilized in our Mining segment's iron ore sales contracts is the Platts 62 percent Fe fines spot rate pricing, which can fluctuatewidely due to numerous factors, such as global economic growth or contraction, change in demand for steel or changes in availability of supply. Our Miningsegment estimates that a hypothetical 10% adverse movement in the international price of iron ore for the period June 1, 2015 through December 31, 2015 wouldhave decreased net income attributable to Icahn Enterprises for our Mining segment by $2 million.Foreign Currency RiskFerrous Resources' principal objective is to produce iron ore which is typically priced in U.S. dollars. The majority of its funding and cash balances are alsodenominated in U.S. dollars. A proportion of Ferrous Resources' costs are incurred in Brazilian reals while significant capital expenditures are expected to beincurred in U.S. dollars. Accordingly, our Mining segment's financial results may be impacted by exchange rate fluctuations between the U.S. dollar and theBrazilian real. Our Mining segment estimates that a hypothetical 10% adverse movement of the Brazilian real against the U.S. dollar during the period June 1,2015 through December 31, 2015 would have decreased net income attributable to Icahn Enterprises for our Mining segment by $4 million.Holding CompanyInterest Rate RiskThe fair values of our long-term debt and other borrowings will fluctuate in response to changes in market interest rates. Increases and decreases in prevailinginterest rates generally translate into decreases and increases in fair values of those instruments. Additionally, fair values of interest rate sensitive instruments maybe affected by the creditworthiness of the issuer, relative values of alternative investments, the liquidity of the instrument and other general market conditions.Historically, the Holding Company does not invest in derivative financial instruments, interest rate swaps or other investments that alter interest rate exposure. TheHolding Company has predominately long-term fixed interest rate debt. Generally, the fair market value of debt securities with a fixed interest rate will increase asinterest rates fall, and the fair market value will decrease as interest rates rise. At December 31, 2015 , all of the Holding Company's debt had fixed rates andtherefore would not be subject to fluctuations in interest rates.Market RiskThe carrying values of investments subject to equity price risks are based on quoted market prices or management's estimates of fair value as of the balancesheet dates. Market prices are subject to fluctuation and, consequently, the amount realized in the subsequent sale of an investment may significantly differ fromthe reported market value. Fluctuation in the market price of a security may result from perceived changes in the underlying economic characteristics of theinvestee, the relative price of alternative investments and general market conditions. Furthermore, amounts realized in the sale of a particular security may beaffected by the relative quantity of the security being sold.Based on sensitivity analysis for our equity price risks as of December 31, 2015 , the effect of a hypothetical 10% adverse change in market prices wouldresult in loss of approximately $33 million. The selected hypothetical change does not reflect what could be considered the best or worst case scenarios. Indeed,results could be far worse due to the nature of equity markets.137Item 8. Financial Statements and Supplementary Data.REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo the Partners ofIcahn Enterprises L.P.We have audited the accompanying consolidated balance sheets of Icahn Enterprises L.P. (a Delaware limited partnership) and subsidiaries (the “Partnership”) asof December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for each ofthe three years in the period ended December 31, 2015. Our audits of the basic consolidated financial statements included the financial statement schedule listed inthe index appearing under Item 15(a)(2). These financial statements and financial statement schedule are the responsibility of the Partnership’s management. Ourresponsibility is to express an opinion on these financial statements and financial statement schedule based on our audits.We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basisfor our opinion.In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Icahn Enterprises L.P. andsubsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the three years in the period ended December 31,2015 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the related financial statement schedule,when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forththerein.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Partnership’s internal control overfinancial reporting as of December 31, 2015, based on criteria established in the 2013 Internal Control-Integrated Framework issued by the Committee ofSponsoring Organizations of the Treadway Commission (COSO), and our report dated February 29, 2016 expressed an unqualified opinion./s/GRANT THORNTON LLPNew York, New YorkFebruary 29, 2016138REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo the Partners ofIcahn Enterprises Holdings L.P.We have audited the accompanying consolidated balance sheets of Icahn Enterprises Holdings L.P. (a Delaware limited partnership) and subsidiaries (the“Partnership”) as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income (loss), changes in equity, and cashflows for each of the three years in the period ended December 31, 2015. Our audits of the basic consolidated financial statements included the financial statementschedule listed in the index appearing under Item 15(a)(2). These financial statements and financial statement schedule are the responsibility of the Partnership’smanagement. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits.We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged toperform an audit of the Partnership’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as abasis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of thePartnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Icahn Enterprises HoldingsL.P. and subsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the three years in the period endedDecember 31, 2015 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the related financialstatement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, theinformation set forth therein./s/GRANT THORNTON LLPNew York, New YorkFebruary 29, 2016139ICAHN ENTERPRISES L.P. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In millions, except unit amounts) December 31, 2015 2014ASSETS Cash and cash equivalents$2,078 $2,908Cash held at consolidated affiliated partnerships and restricted cash1,282 1,439Investments15,351 14,480Accounts receivable, net1,685 1,691Inventories, net2,259 1,879Property, plant and equipment, net9,535 8,812Goodwill1,504 2,000Intangible assets, net1,108 1,088Other assets1,640 1,493Total Assets$36,442 $35,790LIABILITIES AND EQUITY Accounts payable$1,416 $1,387Accrued expenses and other liabilities1,828 2,248Deferred tax liability1,197 1,255Securities sold, not yet purchased, at fair value794 334Due to brokers7,317 5,197Post-employment benefit liability1,224 1,391Debt12,633 11,588Total liabilities26,409 23,400 Commitments and contingencies (Note 17) Equity: Limited partners: Depositary units: 131,481,059 and 123,103,414 units issued and outstanding at December31, 2015 and 2014, respectively4,244 5,672General partner(257) (229)Equity attributable to Icahn Enterprises3,987 5,443Equity attributable to non-controlling interests6,046 6,947Total equity10,033 12,390Total Liabilities and Equity$36,442 $35,790See notes to consolidated financial statements.140ICAHN ENTERPRISES L.P. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per unit amounts) Year Ended December 31, 2015 2014 2013Revenues: Net sales$14,604 $18,072 $17,785 Other revenues from operations1,386 1,250 988 Net (loss) gain from investment activities(987) (564) 1,694 Interest and dividend income194 217 194 Other income, net75 182 21 15,272 19,157 20,682Expenses: Cost of goods sold12,741 16,485 15,809 Other expenses from operations643 613 504 Selling, general and administrative1,908 1,625 1,417 Restructuring97 84 50 Impairment788 135 16 Interest expense1,154 847 560 17,331 19,789 18,356(Loss) income before income tax (expense) benefit(2,059) (632) 2,326Income tax (expense) benefit(68) 103 118Net (loss) income(2,127) (529) 2,444Less: net loss (income) attributable to non-controlling interests933 156 (1,419)Net (loss) income attributable to Icahn Enterprises$(1,194) $(373) $1,025 Net (loss) income attributable to Icahn Enterprises allocable to: Limited partners$(1,170) $(366) $1,005 General partner(24) (7) 20 $(1,194) $(373) $1,025 Basic (loss) income per LP unit$(9.29) $(3.08) $9.14Basic weighted average LP units outstanding126 119 110 Diluted (loss) income per LP unit$(9.29) $(3.08) $9.07Diluted weighted average LP units outstanding126 119 111Cash distributions declared per LP unit$6.00 $6.00 $4.50See notes to consolidated financial statements.141ICAHN ENTERPRISES L.P. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(In millions) Year Ended December 31, 2015 2014 2013 Net (loss) income$(2,127) $(529) $2,444Other comprehensive (loss) income, net of tax: Post-employment benefits60 (228) 175Hedge instruments1 — 8Translation adjustments and other(225) (260) (6)Other comprehensive (loss) income, net of tax(164) (488) 177Comprehensive (loss) income(2,291) (1,017) 2,621Less: Comprehensive loss (income) attributable to non-controlling interests973 278 (1,463)Comprehensive (loss) income attributable to Icahn Enterprises$(1,318) $(739) $1,158 Comprehensive (loss) income attributable to Icahn Enterprises allocable to: Limited partners$(1,292) $(724) $1,135 General partner(26) (15) 23 $(1,318) $(739) $1,158Accumulated other comprehensive loss was $1,457 million and $1,293 million at December 31, 2015 and 2014, respectively.See notes to consolidated financial statements.142ICAHN ENTERPRISES L.P. AND SUBSIDIARIESCONSOLIDATED STATEMENT OF CHANGES IN EQUITY(In millions, except units) Equity Attributable to Icahn Enterprises General Partner's(Deficit) Equity LimitedPartners' Equity Total Partners'Equity Non-controllingInterests Total EquityBalance, December 31, 2012$(244) $4,913 $4,669 $5,147 $9,816Net income20 1,005 1,025 1,419 2,444Other comprehensive income3 130 133 44 177Partnership contributions12 581 593 — 593Partnership distributions(1) (50) (51) — (51)Investment segment contributions— — — 46 46Distributions paid to non-controlling interests in subsidiary— — — (379) (379)Proceeds from subsidiary equity offerings2 88 90 966 1,056Acquisition of ARL(5) (237) (242) — (242)Changes in subsidiary equity and other(3) (122) (125) (26) (151)Balance, December 31, 2013(216) 6,308 6,092 7,217 13,309Net loss(7) (366) (373) (156) (529)Other comprehensive loss(8) (358) (366) (122) (488)Partnership distributions(2) (123) (125) — (125)Investment segment contributions— — — 500 500Distributions paid to non-controlling interests in subsidiary— — — (642) (642)Proceeds from subsidiary equity offerings— 10 10 150 160Changes in subsidiary equity and other4 201 205 — 205Balance, December 31, 2014(229) 5,672 5,443 6,947 12,390Net loss(24) (1,170) (1,194) (933) (2,127)Other comprehensive loss(2) (122) (124) (40) (164)Partnership distributions(2) (114) (116) — (116)Investment segment contributions— — — 276 276Investment segment distributions— — — (36) (36)Acquisitions— — — 90 90Distributions to non-controlling interests in subsidiaries— — — (252) (252)Proceeds from subsidiary equity offering— — — 31 31Changes in subsidiary equity and other— (22) (22) (37) (59)Balance, December 31, 2015$(257) $4,244 $3,987 $6,046 $10,033See notes to consolidated financial statements.143ICAHN ENTERPRISES L.P. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In millions) Year Ended December 31, 2015 2014 2013Cash flows from operating activities: Net (loss) income$(2,127) $(529) $2,444Adjustments to reconcile net (loss) income to net cash provided by operating activities: Net loss (gain) from securities transactions1,737 (614) (3,754)Purchases of securities(6,552) (6,523) (7,425)Proceeds from sales of securities4,281 5,079 4,664Purchases to cover securities sold, not yet purchased(577) (980) (46)Proceeds from securities sold, not yet purchased952 342 365Changes in receivables and payables relating to securities transactions2,085 2,888 2,715Loss on extinguishment of debt2 162 —Depreciation and amortization863 809 742Impairment788 135 16Deferred taxes(30) (191) (157)Other, net(58) (2) 73Changes in operating assets and liabilities: Changes in cash held at consolidated affiliated partnerships and restricted cash168 (1,045) 591Accounts receivable, net43 103 26Inventories, net(74) 82 39Other assets(234) (136) (154)Accounts payable(32) (21) 31Accrued expenses and other liabilities(521) 51 547Net cash (used in) provided by operating activities714 (390) 717Cash flows from investing activities: Capital expenditures(1,359) (1,411) (1,161)Acquisition of ARL— — (279)Acquisitions of businesses, net of cash acquired(855) (558) (6)Purchases of investments(311) (78) (86)Other, net174 90 76Net cash used in investing activities(2,351) (1,957) (1,456)Cash flows from financing activities: Investment segment distributions(36) — (185)Investment segment contributions276 500 46Partnership contributions— — 593Partnership distributions(116) (125) (51)Proceeds from offering of subsidiary equity31 188 1,308Distributions to non-controlling interests in subsidiaries(252) (642) (379)Proceeds from issuance of senior unsecured notes— 4,991 493Repayments of senior unsecured notes— (3,625) —Proceeds from other borrowings1,972 4,794 591Repayments of borrowings(972) (4,031) (1,526)Other, net(77) (42) 18Net cash provided by financing activities826 2,008 908Effect of exchange rate changes on cash and cash equivalents(7) (10) (14)Net change in cash of assets held for sale(12) — —Net (decrease) increase in cash and cash equivalents(830) (349) 155Cash and cash equivalents, beginning of period2,908 3,257 3,102Cash and cash equivalents, end of period$2,078 $2,908 $3,257 144Supplemental information: Cash payments for interest, net of amounts capitalized$602 $607 $482Net cash (receipts) payments for income taxes$(1) $115 $126Fair value of investment in Ferrous Resources prior to acquisition of a controlling interest$36 $— $—Distribution payable to Icahn Enterprises unitholders$— $— $142Non-cash investment segment contribution$— $— $185Non-cash capital expenditures additions included in liabilities$35 $70 $36See notes to consolidated financial statements.145ICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In millions) December 31, 2015 2014ASSETS Cash and cash equivalents$2,078 $2,908Cash held at consolidated affiliated partnerships and restricted cash1,282 1,439Investments15,351 14,480Accounts receivable, net1,685 1,691Inventories, net2,259 1,879Property, plant and equipment, net9,535 8,812Goodwill1,504 2,000Intangible assets, net1,108 1,088Other assets1,664 1,516Total Assets$36,466 $35,813LIABILITIES AND EQUITY Accounts payable$1,416 $1,387Accrued expenses and other liabilities1,828 2,248Deferred tax liability1,197 1,255Securities sold, not yet purchased, at fair value794 334Due to brokers7,317 5,197Post-employment benefit liability1,224 1,391Debt12,633 11,588Total liabilities26,409 23,400 Commitments and contingencies (Note 17) Equity: Limited partner4,310 5,751General partner(299) (285)Equity attributable to Icahn Enterprises Holdings4,011 5,466Equity attributable to non-controlling interests6,046 6,947Total equity10,057 12,413Total Liabilities and Equity$36,466 $35,813See notes to consolidated financial statements.146ICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In millions) Year Ended December 31, 2015 2014 2013Revenues: Net sales$14,604 $18,072 $17,785 Other revenues from operations1,386 1,250 988 Net (loss) gain from investment activities(987) (564) 1,694 Interest and dividend income194 217 194 Other income, net75 182 21 15,272 19,157 20,682Expenses: Cost of goods sold12,741 16,485 15,809 Other expenses from operations643 613 504 Selling, general and administrative1,908 1,625 1,417 Restructuring97 84 50 Impairment788 135 16 Interest expense1,153 846 560 17,330 19,788 18,356(Loss) income before income tax (expense) benefit(2,058) (631) 2,326Income tax (expense) benefit(68) 103 118Net (loss) income(2,126) (528) 2,444Less: net loss (income) attributable to non-controlling interests933 156 (1,419)Net (loss) income attributable to Icahn Enterprises Holdings$(1,193) $(372) $1,025 Net (loss) income attributable to Icahn Enterprises Holdings allocable to: Limited partner$(1,181) $(368) $1,015 General partner(12) (4) 10 $(1,193) $(372) $1,025See notes to consolidated financial statements.147ICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(In millions) Year Ended December 31, 2015 2014 2013 Net (loss) income$(2,126) $(528) $2,444Other comprehensive (loss) income, net of tax: Post-employment benefits60 (228) 175Hedge instruments1 — 8Translation adjustments and other(225) (260) (6)Other comprehensive (loss) income, net of tax(164) (488) 177Comprehensive (loss) income(2,290) (1,016) 2,621Less: Comprehensive loss (income) attributable to non-controlling interests973 278 (1,463)Comprehensive (loss) income attributable to Icahn Enterprises Holdings$(1,317) $(738) $1,158 Comprehensive (loss) income attributable to Icahn Enterprises Holdings allocable to: Limited partner$(1,304) $(731) $1,146 General partner(13) (7) 12 $(1,317) $(738) $1,158Accumulated other comprehensive loss was $1,457 million and $1,293 million at December 31, 2015 and 2014, respectively.See notes to consolidated financial statements.148ICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESCONSOLIDATED STATEMENT OF CHANGES IN EQUITY(In millions) Equity Attributable to Icahn Enterprises Holdings General Partner'sEquity (Deficit) LimitedPartner's Equity Total Partners'Equity Non-controllingInterests Total EquityBalance, December 31, 2012$(293) $4,984 $4,691 $5,147 $9,838Net income10 1,015 1,025 1,419 2,444Other Comprehensive income2 131 133 44 177Partnership contributions6 587 593 — 593Partnership distributions(1) (50) (51) — (51)Investment segment contributions— — — 46 46Distributions paid to non-controlling interests insubsidiary— — — (379) (379)Proceeds from subsidiary equity offerings1 89 90 966 1,056Acquisition of ARL(3) (239) (242) — (242)Changes in subsidiary equity and other(1) (124) (125) (26) (151)Balance, December 31, 2013(279) 6,393 6,114 7,217 13,331Net loss(4) (368) (372) (156) (528)Other comprehensive loss(3) (363) (366) (122) (488)Partnership distributions(1) (124) (125) — (125)Investment segment contributions— — — 500 500Distributions paid to non-controlling interests insubsidiary— — — (642) (642)Proceeds from subsidiary equity offerings— 10 10 150 160Changes in subsidiary equity and other2 203 205 — 205Balance, December 31, 2014(285) 5,751 5,466 6,947 12,413Net loss(12) (1,181) (1,193) (933) (2,126)Other comprehensive loss(1) (123) (124) (40) (164)Partnership distributions(1) (115) (116) — (116)Investment segment contributions— — — 276 276Investment segment distributions— — — (36) (36)Acquisitions— — — 90 90Distributions to non-controlling interests insubsidiaries— — — (252) (252)Subsidiary equity offering— — — 31 31Changes in subsidiary equity and other— (22) (22) (37) (59)Balance, December 31, 2015$(299) $4,310 $4,011 $6,046 $10,057See notes to consolidated financial statements.149ICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In millions) Year Ended December 31, 2015 2014 2013Cash flows from operating activities: Net (loss) income$(2,126) $(528) $2,444Adjustments to reconcile net (loss) income to net cash provided by operating activities: Net loss (gain) from securities transactions1,737 (614) (3,754)Purchases of securities(6,552) (6,523) (7,425)Proceeds from sales of securities4,281 5,079 4,664Purchases to cover securities sold, not yet purchased(577) (980) (46)Proceeds from securities sold, not yet purchased952 342 365Changes in receivables and payables relating to securities transactions2,085 2,888 2,715Loss on extinguishment of debt2 162 —Depreciation and amortization862 808 742Impairment788 135 16Deferred taxes(30) (191) (157)Other, net(58) (2) 73Changes in operating assets and liabilities: Changes in cash held at consolidated affiliated partnerships and restricted cash168 (1,045) 591Accounts receivable, net43 103 26Inventories, net(74) 82 39Other assets(234) (136) (154)Accounts payable(32) (21) 31Accrued expenses and other liabilities(521) 51 547Net cash (used in) provided by operating activities714 (390) 717Cash flows from investing activities: Capital expenditures(1,359) (1,411) (1,161)Acquisition of ARL— — (279)Acquisitions of businesses, net of cash acquired(855) (558) (6)Purchases of investments(311) (78) (86)Other, net174 90 76Net cash used in investing activities(2,351) (1,957) (1,456)Cash flows from financing activities: Investment segment distributions(36) — (185)Investment segment contributions276 500 46Partnership contributions— — 593Partnership distributions(116) (125) (51)Proceeds from offering of subsidiary equity31 188 1,308Distributions to non-controlling interests in subsidiaries(252) (642) (379)Proceeds from issuance of senior unsecured notes— 4,991 493Repayments of senior unsecured notes— (3,625) —Proceeds from other borrowings1,972 4,794 591Repayments of borrowings(972) (4,031) (1,526)Other, net(77) (42) 18Net cash provided by financing activities826 2,008 908Effect of exchange rate changes on cash and cash equivalents(7) (10) (14)Net change in cash of assets held for sale(12) — —Net (decrease) increase in cash and cash equivalents(830) (349) 155Cash and cash equivalents, beginning of period2,908 3,257 3,102Cash and cash equivalents, end of period$2,078 $2,908 $3,257 150Supplemental information: Cash payments for interest, net of amounts capitalized$602 $607 $482Net cash (receipts) payments for income taxes$(1) $115 $126Fair value of investment in Ferrous Resources prior to acquisition of a controlling interest$36 $— $—Distribution payable to Icahn Enterprises unitholders$— $— $142Non-cash investment segment contribution$— $— $185Non-cash capital expenditures additions included in liabilities$35 $70 $36See notes to consolidated financial statements.151ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS1 .Description of Business and Basis of Presentation .GeneralIcahn Enterprises L.P. (“Icahn Enterprises”) is a master limited partnership formed in Delaware on February 17, 1987. Icahn Enterprises Holdings L.P.(“Icahn Enterprises Holdings”) is a limited partnership formed in Delaware on February 17, 1987. References to "we," "our" or "us" herein include both IcahnEnterprises and Icahn Enterprises Holdings and their subsidiaries, unless the context otherwise requires.Icahn Enterprises owns a 99% limited partner interest in Icahn Enterprises Holdings. Icahn Enterprises G.P. Inc. (“Icahn Enterprises GP”), which is ownedand controlled by Mr. Carl C. Icahn, owns a 1% general partner interest in each of Icahn Enterprises and Icahn Enterprises Holdings. Icahn Enterprises Holdingsand its subsidiaries own substantially all of our assets and liabilities and conduct substantially all of our operations. Therefore, the financial results of IcahnEnterprises and Icahn Enterprises Holdings are substantially the same, with differences relating primarily to debt, as discussed further in Note 10 , " Debt ," and theallocation of the general partner interest, which is reflected as an aggregate 1.99% general partner interest in the financial statements of Icahn Enterprises. Inaddition to the above, Mr. Icahn and his affiliates owned 117,033,818 , or approximately 89.0% , of Icahn Enterprises' outstanding depositary units as ofDecember 31, 2015 .We are a diversified holding company owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Automotive,Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate and Home Fashion. We also report the results of our Holding Company, which includes theresults of certain subsidiaries of Icahn Enterprises and Icahn Enterprises Holdings (unless otherwise noted), and investment activity and expenses associated withthe Holding Company. Further information regarding our continuing reportable segments is contained in Note 3 , “ Operating Units ,” and Note 13 , “ Segment andGeographic Reporting .”We conduct and plan to continue to conduct our activities in such a manner as not to be deemed an investment company under the Investment Company Actof 1940, as amended (the “'40 Act”). Therefore, no more than 40% of our total assets can be invested in investment securities, as such term is defined in the '40Act. In addition, we do not invest or intend to invest in securities as our primary business. We intend to structure our investments to continue to be taxed as apartnership rather than as a corporation under the applicable publicly traded partnership rules of the Internal Revenue Code, as amended (the “Code”).During the year ended December 31, 2015 , our Automotive made several acquisitions which were not material, individually or in the aggregate, to ourconsolidated financial statements. In addition, during 2015, we acquired a controlling interest in Ferrous Resources Limited ("Ferrous Resources"), constituting ourMining segment, which was not material, individually or in the aggregate (when combined with other acquisitions) to our consolidated financial statements. SeeNote 3 , " Operating Units ," for further discussion regarding these acquisitions.2 .Summary of Significant Accounting Policies .As discussed in Note 1 , “ Description of Business and Basis of Presentation ,” we operate in several diversified segments. The accounting policies related tothe specific segments or industries are differentiated, as required, in the list of significant accounting policies set out below.Principles of ConsolidationAs of December 31, 2015, our consolidated financial statements include the accounts of (i) Icahn Enterprises and Icahn Enterprises Holdings and (ii) thewholly and majority owned subsidiaries of Icahn Enterprises and Icahn Enterprises Holdings, in addition to those entities in which we have a controlling interest asa general partner interest. In evaluating whether we have a controlling financial interest in entities that we consolidate, we consider the following: (1) for votinginterest entities, we consolidate these entities in which we own a majority of the voting interests; and (2) for limited partnership entities, we consolidate theseentities if we are the general partner of such entities and for which no substantive kick-out rights (the rights underlying the limited partners' ability to dissolve thelimited partnership or otherwise remove the general partners are collectively referred to as “kick-out” rights) or participating rights exist. All materialintercompany accounts and transactions have been eliminated in consolidation.152ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSExcept for our Investment segment, for those investments in which we own 50% or less but greater than 20%, we account for such investments using theequity method, while investments in affiliates of 20% or less are accounted for under the cost method.ReclassificationsCertain reclassifications from the prior year presentation have been made to conform to the current year presentation.Use of Estimates in Preparation of Financial StatementsThe preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affectthe reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. The moresignificant estimates include: (1) the valuation allowances of accounts receivable and inventory; (2) the valuation of goodwill, indefinite-lived intangible assets andlong-lived assets; (3) deferred tax assets; (4) environmental liabilities; (5) fair value of investments and derivatives; and (6) post-employment benefit liabilities.Actual results may differ from the estimates and assumptions used in preparing the consolidated financial statements.Cash and Cash EquivalentsWe consider short-term investments, which are highly liquid with original maturities of three months or less at date of purchase, to be cash equivalents.Cash Held at Consolidated Affiliated Partnerships and Restricted CashCash held at consolidated affiliated partnerships primarily consists of cash and cash equivalents held by our Investment Funds (as defined herein) that,although not legally restricted, is not available to fund the general liquidity needs of the Investment segment or Icahn Enterprises. Restricted cash primarily relatesto cash pledged and held for margin requirements on derivative transactions.Our consolidated restricted cash balance was $966 million and approximately $1.3 billion as of December 31, 2015 and 2014, respectively.Investments and Related TransactionsInvestmentInvestment Transactions and Related Investment Income (Loss). Investment transactions of the Investment Funds are recorded on a trade date basis.Realized gains or losses on sales of investments are based on the first-in, first-out or the specific identification method. Realized and unrealized gains or losses oninvestments are recorded in the consolidated statements of operations. Interest income and expenses are recorded on an accrual basis and dividends are recorded onthe ex-dividend date. Premiums and discounts on fixed income securities are amortized using the effective yield method.Investments held by the Investment segment are accounted for as trading securities. Our Investment segment applies the fair value option to thoseinvestments that are otherwise subject to the equity method.Valuation of Investments. Securities of the Investment Funds that are listed on a securities exchange are valued at their last sales price on the primarysecurities exchange on which such securities are traded on such date. Securities that are not listed on any exchange but are traded over-the-counter are valued at themean between the last “bid” and “ask” price for such security on such date. Securities and other instruments for which market quotes are not readily available arevalued at fair value as determined in good faith by the applicable General Partner.Foreign Currency Transactions. The books and records of the Investment Funds are maintained in U.S. dollars. Assets and liabilities denominated incurrencies other than U.S. dollars are translated into U.S. dollars at the rate of exchange in effect at the balance sheet date. Transactions during the perioddenominated in currencies other than U.S. dollars are translated at the rate of exchange applicable on the date of the transaction. Foreign currency translation gainsand losses are recorded in the consolidated statements of operations. The Investment Funds do not isolate that portion of the results of operations resulting fromchanges in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities. Such fluctuations are reflected in“Net gain (loss) from investment activities” in the consolidated statement of operations.153ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSFair Values of Financial Instruments. The fair values of the Investment Funds' assets and liabilities that qualify as financial instruments under applicableU.S. GAAP approximate the carrying amounts presented in the consolidated balance sheets.Securities Sold, Not Yet Purchased. The Investment Funds may sell an investment they do not own in anticipation of a decline in the fair value of thatinvestment. When the Investment Funds sell an investment short, they must borrow the investment sold short and deliver it to the broker-dealer through which theymade the short sale. A gain, limited to the price at which the Investment Funds sold the investment short, or a loss, unlimited in amount, will be recognized uponthe cover of the short sale.Due From Brokers. Due from brokers represents cash balances with the Investment Funds' clearing brokers and is included in other assets in theconsolidated balance sheets. These funds as well as fully-paid for and marginable securities are essentially restricted to the extent that they serve as collateralagainst securities sold, not yet purchased. Due from brokers may also include unrestricted balances with derivative counterparties. Due To Brokers. Due to brokers represents margin debit balances collateralized by certain of the Investment Funds' investments in securities.Other Segments and Holding CompanyInvestments in equity and debt securities are classified as either trading or available-for-sale based upon whether we intend to hold the investment for theforeseeable future. Trading securities are valued at quoted market value at each balance sheet date with the unrealized gains or losses reflected in the consolidatedstatements of operations. Available-for-sale securities are carried at fair value on our balance sheet. Unrealized holding gains and losses on available-for-salesecurities are excluded from earnings and reported as a separate component of partners' equity and when sold are reclassified out of partners' equity to theconsolidated statements of operations. For purposes of determining gains and losses, the cost of securities is based on specific identification.A decline in the market value of any available-for-sale security below cost that is deemed to be other than temporary results in an impairment that is chargedto earnings and the establishment of a new cost basis for the investment. Dividend income is recorded when declared and interest income is recognized whenearned.Fair Value of Financial InstrumentsThe carrying values of cash and cash equivalents, cash held at consolidated affiliated partnerships and restricted cash, accounts receivable, due from brokers,accounts payable, accrued expenses and other liabilities and due to brokers are deemed to be reasonable estimates of their fair values because of their short-termnature.See Note 5 , “ Investments and Related Matters ,” and Note 6 , “ Fair Value Measurements ,” for a detailed discussion of our investments.The fair value of our long-term debt is based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of thesame remaining maturities. The carrying value and estimated fair value of our long-term debt as of December 31, 2015 was approximately $12.6 billion and $12.2billion , respectively. The carrying value and estimated fair value of our long-term debt as of December 31, 2014 was each approximately $11.6 billion .Fair Value Option for Financial Assets and Financial LiabilitiesThe fair value option gives entities the option to measure eligible financial assets, financial liabilities and firm commitments at fair value (i.e., the fair valueoption), on an instrument-by-instrument basis, that are otherwise not permitted to be accounted for at fair value pursuant to the provisions of Financial AccountingStandards Board ("FASB") ASC Topic 825, Financial Instrument s. The election to use the fair value option is available when an entity first recognizes a financialasset or financial liability or upon entering into a firm commitment. Subsequent changes in fair value must be recorded in earnings. In estimating the fair value forfinancial instruments for which the fair value option has been elected, we use the valuation methodologies in accordance to where the financial instruments areclassified within the fair value hierarchy as discussed in Note 6 , “ Fair Value Measurements .” For our Investment segment, we apply the fair value option to ourinvestments that would otherwise be accounted under the equity method.154ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSDerivativesFrom time to time, our subsidiaries enter into derivative contracts, including purchased and written option contracts, swap contracts, futures contracts andforward contracts. U.S. GAAP requires recognition of all derivatives as either assets or liabilities in the balance sheet at their fair value. The accounting forchanges in fair value depends on the intended use of the derivative and its resulting designation. For those derivative instruments that are designated and qualify ashedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedgeof a net investment in a foreign operation. Gains and losses related to a hedge are either recognized in income immediately to offset the gain or loss on the hedgeditem or are deferred and reported as a component of accumulated other comprehensive loss and subsequently recognized in earnings when the hedged item affectsearnings. The change in fair value of the ineffective portion of a financial instrument, determined using the hypothetical derivative method, is recognized inearnings immediately. The gain or loss related to financial instruments that are not designated as hedges are recognized immediately in earnings. Cash flowsrelated to hedging activities are included in the operating section of the consolidated statements of cash flows. For further information regarding our derivativecontracts, see Note 7 , “ Financial Instruments .”Accounts Receivable, NetAn allowance for doubtful accounts is determined through analysis of the aging of accounts receivable at the date of the consolidated financial statements,assessments of collectability based on an evaluation of historic and anticipated trends, the financial condition of our customers, and an evaluation of the impact ofeconomic conditions. Our allowance for doubtful accounts is an estimate based on specifically identified accounts as well as general reserves based on historicalexperience.Inventories, NetInventories, net consists of the following: December 31, 2015 2014 (in millions)Raw materials$457 $450Work in process292 244Finished goods1,510 1,185 $2,259 $1,879Automotive, Railcar, Food Packaging, and Home Fashion Segment Inventories. Our Automotive, Railcar, Food Packaging and Home Fashion segmentinventories are stated at the lower of cost or market. Cost is determined by using the first-in, first-out basis method ("FIFO"), except for IEH Auto which utilizesweighted-average cost. The cost of manufactured goods includes the cost of materials, direct labor and manufacturing overhead. Our Automotive, Railcar, FoodPackaging and Home Fashion segments reserve for estimated excess, slow-moving and obsolete inventory as well as inventory whose carrying value is in excess ofnet realizable value.Energy Inventories. Our Energy segment inventories consist primarily of domestic and foreign crude oil, blending stock and components, work in progress,fertilizer products, and refined fuels and by-products. Inventories are valued at the lower of FIFO cost, or market for fertilizer products, refined fuels and by-products for all periods presented. Refinery unfinished and finished products inventory values were determined using the ability-to-bear process, whereby rawmaterials and production costs are allocated to work-in-process and finished goods based on their relative fair values. Other inventories, including other rawmaterials, spare parts and supplies, are valued at the lower of moving-average cost, which approximates FIFO, or market. The cost of inventories includes inboundfreight costs.Due to the current crude environment and subsequent reduction in sales price for our Energy segment's petroleum business' refined products, our Energysegment recorded a lower of FIFO cost or market inventory adjustment of $37 million for the year ended December 31, 2014.Metals Inventories. Inventories at our Metals segment are stated at the lower of cost or market. Cost is determined using the average cost method. Theproduction and accounting process utilized by the Metals segment to record recycled metals inventory quantities relies on significant estimates. Our Metalssegment relies upon perpetual inventory records that155ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSutilize estimated recoveries and yields that are based upon historical trends and periodic tests for certain unprocessed metal commodities. Over time, theseestimates are reasonably good indicators of what is ultimately produced; however, actual recoveries and yields can vary depending on product quality, moisturecontent and source of the unprocessed metal. To assist in validating the reasonableness of the estimates, our Metals segment performs periodic physical inventorieswhich involve the use of estimation techniques. Physical inventories may detect significant variations in volume, but because of variations in product density andproduction processes utilized to manufacture the product, physical inventories will not generally detect smaller variations. To help mitigate this risk, our Metalssegment adjusts its physical inventories when the volume of a commodity is low and a physical inventory can more accurately estimate the remaining volume.Mining Inventories. Our Mining segment's inventories are valued at the lower of cost or market. Cost includes all costs incurred in the normal course ofbusiness in bringing each product to its present location and condition, including direct materials and direct labor costs, and an allocation of production overheadsbased on normal production capacity. Cost is calculated using weighted average unit cost.Property, Plant and Equipment, NetBuildings and improvements, and machinery, equipment and furniture are stated at cost less accumulated depreciation unless declines in the values of thefixed assets are considered other than temporary, at which time the property is written down to net realizable value. Depreciation is principally computed using thestraight-line method over the estimated useful lives of the particular property or equipment, as follows: buildings and improvements, four to 40 years; furniture,fixtures and equipment, one to 30 years. Leasehold improvements are amortized over the life of the lease or the life of the improvement, whichever is shorter.Maintenance and repairs are charged to expense as incurred. The cost of additions and improvements is capitalized and depreciated over the remaining usefullives of the assets. Railcars leased to others are stated at cost less accumulated depreciation unless declines in the values of the leased railcars are considered otherthan temporary, at which time they are written down to net realizable value. Railcars leased to others that were transferred from entities under common control arestated at net book value. Railcars are depreciated on a straight-line basis over 25 to 30 years from the original date placed in service.Real estate properties held for use or investment purposes, other than those accounted for under the financing method, are carried at cost less accumulateddepreciation. Where declines in the values of the properties are determined to be other than temporary, the cost basis of the property is written down to netrealizable value. A property is classified as held for sale at the time management determines that certain criteria have been met. Properties held for sale are carriedat the lower of cost or net realizable value and are no longer depreciated.Land and construction in progress are stated at the lower of cost or net realizable value. Interest is capitalized on expenditures for long-term projects until asalable or ready-for-use condition is reached. The interest capitalization rate is based on the interest rate on specific borrowings to fund the projects. Mining Properties and Mine Development Expenditures - MiningThe costs of acquiring mineral reserves and resources for our Mining segment are capitalized on the consolidated balance sheets as incurred. Capitalizedmineral reserves and mine development expenditures are, upon commencement of commercial production, depreciated using a unit of production method based onthe estimated economically recoverable reserves to which they relate, or are written off if abandoned. The net carrying amounts of the mineral reserves andresources and capitalized mine development expenditures at each mine property are reviewed for impairment either individually or at the cash-generating unit levelwhen events and circumstances indicate that the carrying amount may not be recoverable. To the extent the carrying values exceed their recoverable amounts, theexcess is recognized as an impairment charge in the statements of operations in the period this is determined.In our Mining segment's operations, it is necessary to remove overburden and other waste in order to access the ore body. During the pre-production phase,these costs are capitalized as part of the cost of the mine property and depreciated using a units of production method once the mine enters into a full commercialproduction phase. The costs of removal of the waste material during a mine's production phase are expensed as incurred.156ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSExploration and Evaluation Expenditures - MiningExploration and evaluation expenditures relate to costs incurred in the exploration and evaluation of potential mineral reserves and include costs such asexploratory drilling, sample testing and the costs of feasibility studies. For our Mining segment, exploration and evaluation expenditures other than that acquiredthrough the purchase of another mining company, are expensed as incurred.Purchased exploration and evaluation assets are recognized as assets at their cost of acquisition or at fair value if purchased as part of a business combination.An impairment review is performed, either individually or at the cash-generating unit level, when there are indicators that the carrying amount of the assetsmay exceed their recoverable amounts. To the extent the carrying values exceed their recoverable amounts, the excess is recognized as an impairment charge in thestatements of operations in the period this is determined. Exploration assets are reassessed on a regular basis and these costs are carried forward provided thatcertain conditions are met.Expenditures are transferred to mine development assets once the work completed supports the future development of the property, provided that technicalfeasibility and commercial viability studies have been successfully completed.Planned Major Maintenance Costs - EnergyThe direct-expense method of accounting is used for planned major maintenance activities. Maintenance costs are recognized as expense when maintenanceservices are performed. Planned major maintenance activities for CVR's nitrogen plant generally occur every two to three years. The required frequency of plannedmajor maintenance activities varies by unit for the refineries, but generally is every four to five years.CVR's Coffeyville refinery completed the first phase of its current major scheduled turnaround in the fourth quarter of 2015 and incurred $102 million inturnaround expenses for the year ended December 31, 2015 . The second phase is scheduled to begin in late February 2016. In addition, CVR Partners underwent afull facility turnaround in the third quarter of 2015 and incurred $7 million in turnaround expenses for the year ended December 31, 2015During an outage at CVR's Coffeyville refinery in 2014, our Energy segment accelerated certain planned turnaround activities scheduled for 2015 andincurred $6 million in turnaround expenses for the year ended December 31, 2014. During the fluid catalytic cracking unit ("FCCU") outage at the Wynnewoodrefinery, our Energy segment accelerated certain planned turnaround activities previously scheduled for 2016 and incurred $1 million in turnaround expenses forthe year ended December 31, 2014.Goodwill and Intangible Assets, NetGoodwill and indefinite lived intangible assets primarily include trademarks and trade names acquired in acquisitions. For a complete discussion of theimpairment of goodwill and indefinite intangible-lived assets related to our various segments, see Note 3 , “ Operating Units ,” and Note 8 , “ Goodwill andIntangible Assets, Net .”Impairment of GoodwillWe evaluate the carrying value of goodwill annually and between annual evaluations if events occur or circumstances change that would more likely than notreduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to: (1) a significant adverse change inlegal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. Goodwill impairment testing involves atwo-step process. Step 1 compares the fair value of our reporting units to their carrying values. If the fair value of the reporting unit exceeds its carrying value, nofurther analysis is necessary. The reporting unit fair value is based upon consideration of various valuation methodologies, including guideline transactionmultiples, multiples of current earnings, and projected future cash flows discounted at rates commensurate with the risk involved. If the carrying amount of thereporting unit exceeds its fair value, Step 2 must be completed to quantify the amount of impairment. Step 2 calculates the implied fair value of goodwill bydeducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit, from the fair value of the reporting unit as determined inStep 1. The implied fair value of goodwill determined in this step is compared to the carrying value of goodwill. If the implied fair value of goodwill is less thanthe carrying value of goodwill, an impairment loss, equal to the difference, is recognized.157ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSImpairment of Intangible AssetsWe evaluate the recoverability of identifiable indefinite lived intangible assets annually or more frequently if impairment indicators exist. The impairmentanalysis compares the estimated fair value of these assets to the related carrying value, and impairment charge is recorded for any excess of carrying value overestimated fair value. The estimated fair value is based on consideration of various valuation methodologies, including guideline transaction multiples, multiples ofearnings, and projected future cash flows discounted at rates commensurate with risk involved.Impairment of Long-Lived AssetsWe evaluate the realizability of our long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not berecoverable. Inherent in the reviews of the carrying amounts of the above assets are various estimates, including the expected usage of the asset. Assets must betested at the lowest level for which identifiable cash flows exist. Future cash flow estimates are, by their nature, subjective and actual results may differ materiallyfrom our estimates. If our ongoing estimates of future cash flows are not met, we may have to record impairment charges in future accounting periods to write theasset down to fair value. Our estimates of cash flows are based on the current regulatory, social and economic climates, recent operating information and budgetsof the operating properties.Asset Retirement ObligationsWe record conditional asset retirement obligations (“ARO”) in accordance with applicable U.S. GAAP. As defined in applicable U.S. GAAP, ARO refers toa legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event. An entity is required torecognize a liability for the estimated fair value of an ARO when incurred if the fair value can be reasonably estimated. Our Automotive segment's primary assetretirement activities relate to the removal of hazardous building materials at its facilities. Our Automotive segment records the ARO liability when the amount canbe reasonably estimated, typically upon the expectation that a facility may be closed or sold.Pension and Other Post-Employment Benefit ObligationsPension and other post-employment benefit costs are dependent upon assumptions used in calculating such costs. These assumptions include discount rates,health care cost trends, expected returns on plan assets and other factors. In accordance with U.S. GAAP, actual results that differ from the assumptions used areaccumulated and amortized over future periods and, accordingly, generally affect recognized expense and the recorded obligation in future periods.Allocation of Net Profits and Losses in Consolidated Affiliated PartnershipsInvestmentNet investment income and net realized and unrealized gains and losses on investments of the Investment Funds are allocated to the respective partners of theInvestment Funds based on their percentage ownership in such Investment Funds on a monthly basis. Except for our limited partner interest, such allocations madeto the limited partners of the Investment Funds are represented as non-controlling interests in our consolidated statements of operations.Income Per LP UnitFor Icahn Enterprises, basic income (loss) per LP unit is based on net income or loss attributable to Icahn Enterprises allocable to limited partners. Netincome or loss allocable to limited partners is divided by the weighted-average number of LP units outstanding. Diluted income (loss) per LP unit is based on basicincome (loss) adjusted for interest charges applicable to the variable rate notes as well as the weighted-average number of units and equivalent units outstanding.For accounting purposes, earnings prior to dates of acquisitions or investments in joint ventures of entities under common control are excluded from thecomputation of basic and diluted income per LP unit as such earnings are allocated to our general partner or non-controlling interests. Accordingly, earnings fromARL prior to our investment on October 2, 2013 have been allocated to Mr. Icahn and his affiliates non-controlling interests, and therefore are excluded from thecomputation of basic and diluted income (loss) per LP unit.Acquisition, Investments and Disposition of Entities under Common ControlAcquisitions or investments of entities under common control are reflected in a manner similar to pooling of interests. The general partner's capital account ornon-controlling interests, as applicable, are charged or credited for the difference158ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSbetween the consideration we pay for the entity and the related entity's basis prior to our acquisition or investment. Net gains or losses of an acquired entity prior toits acquisition or investment date are allocated to the general partner's capital account or non-controlling interests, as applicable. In allocating gains and losses uponthe sale of a previously acquired common control entity, we allocate a gain or loss for financial reporting purposes by first restoring the general partner's capitalaccount or non-controlling interests, as applicable, for the cumulative charges or credits relating to prior periods recorded at the time of our acquisition orinvestment and then allocating the remaining gain or loss ("Common Control Gains or Losses") among our general partner, limited partners and non-controllinginterests, as applicable, in accordance with their respective ownership percentages. In the case of acquisitions of entities under common control, such CommonControl Gains or Losses are allocated in accordance with their respective partnership percentages under the Amended and Restated Agreement of LimitedPartnership dated as of May 12, 1987, as amended from time to time (together with the partnership agreement of Icahn Enterprises Holdings, the “PartnershipAgreement”) (i.e., 98.01% to the limited partners and 1.99% to the general partner).General Partnership Interest of Icahn Enterprises and Icahn Enterprises HoldingsThe general partner's capital account generally consists of its cumulative share of our net income less cash distributions plus capital contributions.Additionally, in acquisitions of common control companies accounted for at historical cost similar to a pooling of interests, the general partner's capital accountwould be charged (or credited) in a manner similar to a distribution (or contribution) for the excess (or deficit) of the fair value of consideration paid over historicalbasis in the business acquired.Capital Accounts, as defined under the Partnership Agreement, are maintained for our general partner and our limited partners. The capital accountprovisions of our Partnership Agreement incorporate principles established for U.S. federal income tax purposes and are not comparable to the equity accountsreflected under U.S. GAAP in our consolidated financial statements. Under our Partnership Agreement, the general partner is required to make additional capitalcontributions to us upon the issuance of any additional depositary units in order to maintain a capital account balance equal to 1.99% of the total capital accounts ofall partners.Generally, net earnings for U.S. federal income tax purposes are allocated 1.99% and 98.01% between the general partner and the limited partners,respectively, in the same proportion as aggregate cash distributions made to the general partner and the limited partners during the period. This is generallyconsistent with the manner of allocating net income under our Partnership Agreement; however, it is not comparable to the allocation of net income reflected in ourconsolidated financial statements.Pursuant to the Partnership Agreement, in the event of our dissolution, after satisfying our liabilities, our remaining assets would be divided among ourlimited partners and the general partner in accordance with their respective percentage interests under the Partnership Agreement (i.e., 98.01% to the limitedpartners and 1.99% to the general partner). If a deficit balance still remains in the general partner's capital account after all allocations are made between thepartners, the general partner would not be required to make whole any such deficit.Income TaxesExcept as described below, no provision has been made for federal, state, local or foreign income taxes on the results of operations generated by partnershipactivities, as such taxes are the responsibility of the partners. Provision has been made for federal, state, local or foreign income taxes on the results of operationsgenerated by our corporate subsidiaries and these are reflected within continuing and discontinued operations. Deferred tax assets and liabilities are recognized forthe future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective taxbases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable incomein the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates isrecognized in income in the period that includes the enactment date.Deferred tax assets are limited to amounts considered to be realizable in future periods. A valuation allowance is recorded against deferred tax assets ifmanagement does not believe that we have met the “more likely than not” standard to allow recognition of such an asset.U.S. GAAP provides that the tax effects from an uncertain tax position can be recognized in the financial statements only if the position is “more-likely-than-not” to be sustained if the position were to be challenged by a taxing authority. The159ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSassessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. If anuncertain tax position meets the “more-likely-than-not” threshold, the largest amount of tax benefit that is greater than 50 percent likely to be recognized uponultimate settlement with the taxing authority is recorded. See Note 14 , “ Income Taxes ,” for additional information.Revenue and Expense RecognitionAutomotiveRevenue Recognition: Federal-Mogul records sales when products are shipped and the risks and rewards of ownership have transferred to the customer, thesales price is fixed and determinable, and the collectability of revenue is reasonably assured. Accruals for sales returns and other allowances are provided at pointof sale based upon past experience. Adjustments to such returns and allowances are made as new information becomes available.Rebates: Federal-Mogul accrues for rebates pursuant to specific arrangements with certain of its customers, primarily in the aftermarket. Rebates generallyprovide for price reductions based upon the achievement of specified purchase volumes and are recorded as a reduction of sales as earned by such customers.Sales and Sales Related Taxes: Federal-Mogul collects and remits taxes assessed by various governmental authorities that are both imposed on andconcurrent with revenue-producing transactions with its customers. These taxes may include, but are not limited to, sales, use, value-added, and some excisetaxes. The collection of these taxes is reported on a net basis (excluded from revenues).Shipping and Handling Costs: Federal-Mogul recognizes shipping and handling costs as incurred as a component of cost of products sold in theconsolidated statements of operations.Engineering and Tooling Costs: Pre-production tooling and engineering costs that Federal-Mogul will not own and that will be used in producing productsunder long-term supply arrangements are expensed as incurred unless the supply arrangement provides it with the noncancelable right to use the tools, or thereimbursement of such costs is agreed to by the customer. Pre-production tooling costs that are owned by Federal-Mogul are capitalized as part of machinery andequipment, and are depreciated over the shorter of the tool’s expected life or the duration of the related program.Research and Development: Federal-Mogul expenses research and development (“R&D”) costs as incurred. R&D expense, including product engineeringand validation costs, was $189 million , $192 million and $177 million for 2015, 2014 and 2013, respectively.Restructuring: Federal-Mogul's restructuring costs are comprised of two types: employee costs (contractual termination benefits) and facility closure costs.Termination benefits are accounted for in accordance with FASB ASC Topic 712, Compensation - Nonretirement Postemployment Benefits (“FASB ASC 712”),and are recorded when it is probable that employees will be entitled to benefits and the amounts can be reasonably estimated. Estimates of termination benefits arebased on the frequency of past termination benefits, the similarity of benefits under the current plan and prior plans, and the existence of statutory requiredminimum benefits. Termination benefits are also accounted for in accordance with FASB ASC Topic 420, Exit or Disposal Cost Obligations (“FASB ASC 420”),for one-time termination benefits and are recorded dependent upon future service requirements. Facility closure and other costs are accounted for in accordancewith FASB ASC 420 and are recorded when the liability is incurred.EnergyRevenue recognition: For our Energy segment, revenues for products sold are recorded upon delivery of the products to customers, which is the point atwhich title is transferred, the customer has the assumed risk of loss, and when payment has been received or collection is reasonably assumed. Deferred revenuerepresents customer prepayments under contracts to guarantee a price and supply of nitrogen fertilizer in quantities expected to be delivered in the next 12 monthsin the normal course of business. Excise and other taxes collected from customers and remitted to governmental authorities are not included in reported revenues.Non-monetary product exchanges and certain buy/sell crude oil transactions which are entered into in the normal course of business are included on a net costbasis in cost of goods sold in the consolidated statement of operations.Our Energy segment also engages in trading activities, whereby it enters into agreements to purchase and sell refined products with third parties. Our Energysegment acts as a principal in these transactions, taking title to the products in160ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSpurchases from counterparties, and accepting the risks and rewards of ownership. Our Energy segment records revenue for the gross amount of the salestransactions, and records cost of goods sold in our consolidated financial statements.Shipping Costs: For our Energy segment, pass-through finished goods delivery costs reimbursed by customers are reported in net sales, while an offsettingexpense is included in cost of goods sold.GamingRevenue Recognition and Promotional Allowances: Casino revenue represents the difference between wins and losses from gaming activities. Room, foodand beverage and other operating revenues are recognized at the time the goods or services are provided. Tropicana collects taxes from customers at the point ofsale on transactions subject to sales and other taxes. Revenues are recorded net of any taxes collected. The majority of our casino revenue is counted in the form ofcash and chips and, therefore, is not subject to any significant or complex estimation. The retail value of rooms, food and beverage and other services provided tocustomers on a complimentary basis is included in gross revenues and then deducted as promotional allowances.MiningRevenue recognition: Our Mining segment recognizes revenue when title, ownership, and risk of loss pass to the customer, all of which occurs uponshipment or delivery of the product and is based on the applicable shipping terms. Revenue is measured at the fair value of the consideration received or receivable,with any adjustments as a result of provisional pricing recorded against revenue.RailcarRevenue recognition: Revenues from manufactured railcar sales are recognized following completion of manufacturing, inspection, customer acceptance andtitle transfer, which is when the risk for any damage or loss with respect to the railcars passes to the customer. Amounts billed prior to meeting revenue recognitioncriteria are accounted for as deferred revenue. Revenues from railcar leasing are recognized on a straight-line basis per terms of the lease. If railcars are sold undera lease that is less than one year old, the proceeds from the railcars sold that were on lease will be shown on a gross basis in revenues and cost of revenues at thetime of sale. Sales of leased railcars that have been on lease for more than one year are recognized as a net gain or loss from the disposal of the long-term asset as acomponent of earnings from operations. Revenues from railcar and industrial components are recorded at the time of product shipment, in accordance with ourRailcar segment's contractual terms. Revenues from railcar maintenance services are recognized upon completion and shipment of railcars from ARI's plants. OurRailcar segment does not currently bundle railcar service contracts with new railcar sales. Revenues from engineering and field services are recognized asperformed.Our Railcar segment records amounts billed to customers for shipping and handling as part of net sales and other revenues from operations in ourconsolidated statements of operations and records related costs in cost of goods sold and other expenses from operations.Our Railcar segment presents any sales tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a sellerand a customer on a net basis.Food PackagingRevenue Recognition: Revenues are recognized at the time products are shipped to the customer, under F.O.B. shipping point or F.O.B. port terms, which isthe point at which title is transferred, the customer has the assumed risk of loss, and payment has been received or collection is reasonably assumed. Revenues arenet of discounts, rebates and allowances. Viskase records all labor, raw materials, in-bound freight, plant receiving and purchasing, warehousing, handling anddistribution costs as a component of costs of goods sold.MetalsRevenue Recognition: PSC Metals' primary source of revenue is from the sale of processed ferrous scrap metal, non-ferrous scrap metals, steel pipe andsteel plate. PSC Metals also generates revenues from sales of secondary plate and pipe, the brokering of scrap metals and from services performed. All sales arerecognized when title passes to the customer. Revenues from services are recognized as the service is performed. Sales adjustments related to price and weightdifferences are reflected as a reduction of revenues when settled.161ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSHome FashionRevenue Recognition: WPH records revenue when the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, theprice to the customer is fixed and determinable and collectability is reasonably assured. Unless otherwise agreed in writing, title and risk of loss pass from WPH tothe customer when WPH delivers the merchandise to the designated point of delivery, to the designated point of destination or to the designated carrier, free onboard. Provisions for certain rebates, sales incentives, product returns and discounts to customers are recorded in the same period the related revenue is recorded.Sales Incentives: Customer incentives are provided to major WPH customers. These incentives begin to accrue when a commitment has been made to thecustomer and are recorded as a reduction to sales.Real EstateRevenue Recognition: Revenue from real estate sales and related costs are recognized at the time of closing primarily by specific identification.Substantially all of the property comprising our net lease portfolio is leased to others under long-term net leases and we account for these leases in accordance withapplicable U.S. GAAP. We account for our leases as follows: (i) under the financing method, (x) minimum lease payments to be received plus the estimated valueof the property at the end of the lease are considered the gross investment in the lease and (y) unearned income, representing the difference between grossinvestment and actual cost of the leased property, is amortized to income over the lease term so as to produce a constant periodic rate of return on the netinvestment in the lease; and (ii) under the operating method, revenue is recognized as rentals become due, and expenses (including depreciation) are charged tooperations as incurred.Environmental LiabilitiesWe recognize environmental liabilities when a loss is probable and reasonably estimable. Such accruals are estimated based on currently availableinformation, existing technology and enacted laws and regulations. Such estimates are based primarily upon the estimated cost of investigation and remediationrequired and the likelihood that other potentially responsible parties will be able to fulfill their commitments at the sites where we may be jointly and severallyliable with such parties. We regularly evaluate and revise estimates for environmental obligations based on expenditures against established reserves and theavailability of additional information.Foreign Currency TranslationExchange adjustments related to international currency transactions and translation adjustments for international subsidiaries whose functional currency is theU.S. dollar (principally those located in highly inflationary economies) are reflected in the consolidated statements of operations. Translation adjustments ofinternational subsidiaries for which the local currency is the functional currency are reflected in the consolidated balance sheets as a component of accumulatedother comprehensive income. Deferred taxes are not provided on translation adjustments as the earnings of the subsidiaries are considered to be permanentlyreinvested.Adoption of New Accounting StandardsIn April 2014, the FASB issued ASU No. 2014-08, which amends FASB ASC Topic 205, Presentation of Financial Statements and FASB ASC Topic 360,Property, Plant, and Equipment . This ASU is effective on a prospective basis applicable to activities that occur within annual periods beginning on or afterDecember 15, 2014, and interim periods within those years, and changes the requirements for reporting discontinued operations. We adopted ASU No. 2014-08during the first quarter of 2015 and believe that this guidance will reduce the number of dispositions that would qualify for discontinued operations at our parentcompany level, thereby reducing the complexity associated with the reporting and disclosure requirements of discontinued operations that would have beenotherwise required previously.In January 2015, the FASB issued ASU No. 2015-01, which amends FASB ASC Topic 220-20, Income Statement - Extraordinary and Unusual Items . ThisASU eliminates from GAAP the concept of extraordinary items. Although the ASU will eliminate the requirements in Subtopic 225-20 for reporting entities toconsider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occurinfrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. This ASU is effective for fiscalyears, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reportingentity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that theguidance is applied162ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSfrom the beginning of the fiscal year of adoption. We adopted ASU No. 2015-01 during the first quarter of 2015, which had no impact on our consolidatedfinancial position, results of operations, comprehensive income, cash flows and disclosures.Recently Issued Accounting StandardsIn May 2014, the FASB issued ASU No. 2014-09, creating a new topic, FASB ASC Topic 606, Revenue from Contracts with Customers , supersedingrevenue recognition requirements in FASB ASC Topic 605, Revenue Recognition . This ASU requires that an entity recognize revenue to depict the transfer ofpromised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods orservices. In addition, an entity is required to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing anduncertainty of revenue and cash flows arising from contracts with customers. This ASU was amended by ASU No. 2015-14, issued in August 2015, which deferredthe original effective date by one year; the effective date of this ASU is for fiscal years, and interim reporting periods within those years, beginning after December15, 2017, using one of two retrospective application methods. Early adoption is permitted only as of the annual reporting periods beginning after December 15,2016, including interim reporting periods within that reporting period. We are currently evaluating the impact of this guidance on our consolidated financialposition, results of operations, comprehensive income, cash flows and disclosures.In June 2014, the FASB issued ASU No. 2014-12, which amends FASB ASC Topic 718, Compensation-Stock Compensation. This ASU requires that aperformance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity shouldapply existing guidance in FASB ASC Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, theperformance target should not be reflected in estimating the grant-date fair value of the award. This ASU is effective for fiscal years, and interim reporting periodswithin those years, beginning after December 15, 2015. We believe that the adoption of this guidance will not have a material impact on our consolidated financialposition, results of operations, comprehensive income, cash flows and disclosures.In February 2015, the FASB issued ASU No. 2015-02, which amends FASB ASC Topic 810, Consolidations . This ASU amends the current consolidationguidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities. This ASU requires that limitedpartnerships and similar legal entities provide partners with either substantive kick-out rights or substantive participating rights over the general partner in order tobe considered a voting interest entity. The specialized consolidation model and guidance for limited partnerships and similar legal entities have been eliminated.There is no longer a presumption that a general partner should consolidate a limited partnership. For limited partnerships and similar legal entities that qualify asvoting interest entities, a limited partner with a controlling financial interest should consolidate a limited partnership. A controlling financial interest may beachieved through holding a limited partner interest that provides substantive kick-out rights. The standard is effective for annual periods beginning after December15, 2015. We believe that the adoption of this guidance will not have a material effect on our consolidated financial position, results of operations, comprehensiveincome, cash flows and disclosures.In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which amends FASB ASC Subtopic 835-30, Interest -Imputation of Interest. The new standard requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying valueof the debt. Given the absence of authoritative guidance within this ASU regarding debt issuance costs related to line-of-credit, the SEC staff has stated that itwould not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred issuance costs ratably over the termof the line-of-credit arrangement. The standard is effective for interim and annual periods beginning after December 15, 2015 and is required to be applied on aretrospective basis. Early adoption is permitted. We expect that the adoption of this new guidance will generally result in a reclassification of debt issuance costson our consolidated balance sheets.In April 2015, the FASB issued ASU No. 2015-06, Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions , whichamends FASB ASC Topic 260, Earnings Per Share . This ASU requires that for purposes of calculating earnings per share under the two-class method, theearnings or losses of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. In that circumstance, thepreviously reported earnings per unit of the limited partners would not change as a result of the drop down transaction. The guidance is effective for fiscal yearsbeginning after December 15, 2015, and interim periods within those fiscal years. Earlier application is permitted. The adoption of this guidance will have noimpact on our consolidated financial statements and163ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSfootnote disclosures as we have historically allocated earnings or losses of a transferred business before the date of applicable dropdown transactions to the generalpartner for purposes of calculating earnings per share.In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory , which amends FASB ASC Topic 330, Inventory . This ASUrequires entities to measure inventory at the lower of cost or net realizable value and eliminates the option that currently exists for measuring inventory at marketvalue. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, andtransportation. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This ASU should beapplied prospectively with earlier application permitted as of the beginning of an interim period or annual reporting period. We anticipate that the adoption of thisguidance will have minimal impact on our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments , which amends FASB ASC Topic805, Business Combinations . This ASU eliminates the requirement to retrospectively adjust provisional amounts recognized at the acquisition dates of businesscombinations. Rather, this ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in thereporting period in which the adjustment amounts are determined. This ASU is effective for fiscal years beginning after December 15, 2015, including interimperiods within those fiscal years. The amendments in this ASU should be applied prospectively to adjustments to provisional amounts that occur after the effectivedate with earlier application permitted for financial statements that have not been issued. We anticipate that the adoption of this guidance will have minimal impacton our consolidated financial position, results of operations, comprehensive income, cash flows and disclosures.In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which amends FASB ASC Topic 740, IncomeTaxes . Current GAAP requires an entity to separate income tax liabilities and assets into current and noncurrent amounts in a classified statement of financialposition. This ASU requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effectivefor annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted as of the beginning of aninterim or annual reporting period. We have elected to early adopt this ASU for the year ended December 31, 2015 on a prospective basis. As we do not present aclassified statement of position, this ASU will not have an impact on our consolidated financial position, results of operations, comprehensive income, cash flowsand disclosures.Filing Status of SubsidiariesFederal-Mogul Corporation (“Federal-Mogul”), CVR Energy, Inc. ("CVR"), American Railcar Industries, Inc. (“ARI”) and Tropicana Entertainment Inc.(“Tropicana”) are each a public reporting entity under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and file annual, quarterly andcurrent reports and proxy and information statements with the Securities and Exchange Commission ("SEC"). Each of these reports is publicly available atwww.sec.gov .3 .Operating Units .InvestmentOur Investment segment is comprised of various private investment funds, including Icahn Partners L.P. ("Icahn Partners"), Icahn Partners Master Fund LP,Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP (collectively, the "Master Funds," and together with Icahn Partners, the "InvestmentFunds"), through which we invest our proprietary capital. We and certain of Mr. Icahn's wholly owned affiliates are the sole investors in the Investment Funds.Icahn Onshore LP and Icahn Offshore LP (together, the "General Partners") act as the general partner of Icahn Partners and the Master Funds, respectively. TheGeneral Partners provide investment advisory and certain administrative and back office services to the Investment Funds but do not provide such services to anyother entities, individuals or accounts. Interests in the Investment Funds are not offered to outside investors.Effective January 1, 2014, Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP were merged with and into Icahn Partners. As a result, theInvestment Funds now consist solely of Icahn Partners LP and Icahn Partners Master Fund LP. Other than this merger, no other organizational or policy changeswere made within our Investment segment.The fair value of our interest in the Investment Funds was approximately $3.4 billion and $4.3 billion as of December 31, 2015 and 2014, respectively.164ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSAutomotiveAs of December 31, 2015 , we conduct our Automotive segment through our majority ownership in Federal-Mogul and our wholly owned subsidiary, IEHAuto Parts Holding LLC ("IEH Auto"), which acquired certain automotive assets of Uni-Select, Inc. through an acquisition that was consummated during thesecond quarter of 2015 (see below for further discussion). Federal-Mogul is a leading global supplier of a broad range of components, accessories and systems to the automotive, small engine, heavy-duty, marine,railroad, agricultural, off-road, aerospace and energy, industrial and transport markets, including customers in both the original equipment manufacturers andservicers (“OE”) market and the replacement market (“aftermarket”). Federal-Mogul’s customers include the world’s largest automotive OEs and majordistributors and retailers in the independent aftermarket.Federal-Mogul operates with two end-customer focused businesses. The Powertrain business unit focuses on original equipment products for automotive,heavy duty and industrial applications. The Motorparts business unit sells and distributes a broad portfolio of products in the global aftermarket, while also servingoriginal equipment manufacturers with products including braking, chassis, wipers and other vehicle components. This organizational model allows for a strongproduct line focus benefiting both original equipment and aftermarket customers and enables the global Federal-Mogul teams to be responsive to customers’ needsfor superior products and to promote greater identification with Federal-Mogul premium brands. Additionally, this organizational model enhances managementfocus to capitalize on opportunities for organic and acquisition growth, profit improvement, resource utilization and business model optimization in line with theunique requirements of the two different customer bases.IEH Auto has 34 distribution centers and satellite locations and 264 corporate-owned parts stores in the United States and supports a network of more than2,000 independent parts stores. IEH Auto operates independently of Federal-Mogul.Transactions between Federal-Mogul and IEH Auto have been eliminated in consolidation.Federal-Mogul ReorganizationOn September 3, 2014, Federal-Mogul announced its plan to separate its Powertrain and Motorparts businesses into two independent, publicly-tradedcompanies serving the global original equipment and aftermarket industries.On February 24, 2015, Federal-Mogul announced that it would defer the previously announced spin-off of its Motorparts business to allow for the integrationof its recently completed brake component, chassis and valvetrain acquisitions and to recognize the benefits of the strategic initiatives in the Motorpartsbusiness. As a result of the deferral and the recent closing of the acquisition of TRW's (as defined below) valvetrain business, Federal-Mogul commenced acommon stock rights offering to strengthen its balance sheet. See below for further information regarding this rights offering.On January 15, 2016, Federal-Mogul announced it terminated its previously announced spin-off of its Motorparts business. Federal-Mogul will continue tooperate in two separate, independent businesses with separate CEOs who will each report directly to Federal-Mogul's board of directors. The separate businessesmore effectively serve their unique markets and allow each operating business to pursue its business strategy and more quickly react to its respective marketconditions.AcquisitionsPursuant to a certain share and asset purchase agreement dated January 23, 2015, Federal-Mogul completed the acquisition of TRW Automotive HoldingsCorp.'s ("TRW") valvetrain business. On February 6, 2015, Federal-Mogul completed the acquisition of certain assets of the TRW's valvetrain business. Thebusiness was acquired through a combination of asset and stock purchases for a base purchase price of $309 million . In addition, on July 7, 2015, Federal-Mogulcompleted the purchase of certain additional business assets of the TRW valvetrain business which were acquired through stock purchases for a base purchaseprice of $56 million . The purchase includes a $25 million non-controlling interest related to the acquisition of a majority owned entity that Federal-Mogulconsolidates into its financial statements. These acquisitions were funded primarily from the Federal-Mogul Replacement Revolving Facility (as defined herein)and is subject to certain customary closing and post-closing adjustments. The purchase of TRW’s valvetrain business adds a new product line to Federal-Mogul'sportfolio, strengthens its position as a leading developer and supplier of core components for engines, and enhances its ability to support its customers to improvefuel economy and reduce emissions.On June 1, 2015, IEH Auto acquired substantially all of the auto parts assets in the United States of Uni-Select, Inc., a leading automotive parts distributor fordomestic and imported vehicles, for a purchase price of $325 million . We recorded a gain on acquisition of $5 million , net of taxes, related to this purchase,representing the difference of the fair value of net assets165ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSacquired over the consideration transferred as of the acquisition date. The bargain purchase gain was recorded in other income, net on the consolidated statementsof operations. We reassessed whether we had correctly identified all of the assets acquired and all of the liabilities assumed of the IEH Auto business acquisitionbefore recognizing a gain on a bargain purchase. We concluded that we had appropriately reviewed our procedures for measuring and allocating fair values of theIEH Auto business acquisition before recognizing a bargain purchase gain.The acquisitions of the TRW's valvetrain business, IEH Auto and Ferrous Resources (as discussed below) during the year ended December 31, 2015 are notmaterial, individually or in the aggregate, to our consolidated financial statements.On February 3, 2016, pursuant to a tender offer, Icahn Enterprises acquired a majority of the outstanding shares of Pep Boys - Manny, Moe & Jack ("PepBoys"), a leading aftermarket provider of automotive service, tires, parts and accessories across the United States and Puerto Rico. On February 4, 2016, IcahnEnterprises completed the acquisition of the remaining outstanding shares of Pep Boys and our wholly owned subsidiary, IEP Parts Acquisition LLC, merged withand into Pep Boys, with Pep Boys surviving the merger as a wholly owned subsidiary of Icahn Enterprises Holdings. The total value for the acquisition of PepBoys was approximately $1.2 billion , including the fair value of our equity interest in Pep-Boys just prior to our acquisition of a controlling interest.Rights OfferingOn March 26, 2015, Federal-Mogul received $250 million in connection with its previously announced common stock registered rights offering (the“Federal-Mogul Rights Offering”). In connection with the Federal-Mogul Rights Offering, we fully exercised our subscription rights under our basic and oversubscription privileges to purchase additional shares of Federal-Mogul common stock, thereby increasing our ownership of Federal-Mogul, for an aggregateadditional investment of $230 million .As of December 31, 2015 , we owned approximately 82.0% of the total outstanding common stock of Federal-Mogul.Accounts Receivable, netFederal-Mogul's subsidiaries in Brazil, France, Germany, Italy and the United States are party to accounts receivable factoring and securitization facilities.Gross accounts receivable transferred under these facilities were $408 million and $306 million as of December 31, 2015 and 2014, respectively. Of those grossamounts, $401 million and $293 million , respectively, qualify as sales as defined in FASB ASC Topic 860, Transfers and Servicing . The remaining transferredreceivables were pledged as collateral and accounted for as secured borrowings and recorded in the consolidated balance sheets within accounts receivable, net anddebt. Under the terms of these facilities, Federal-Mogul is not obligated to draw cash immediately upon the transfer of accounts receivable; however, as of bothDecember 31, 2015 and 2014, Federal-Mogul had withdrawn all such cash. Proceeds from the transfers of accounts receivable qualifying as sales wereapproximately $1.6 billion , $1.7 billion and $1.5 billion for the years ended December 31, 2015 , 2014 and 2013, respectively.For the years ended December 31, 2015 , 2014 and 2013, expenses associated with transfers of receivables were $9 million , $6 million and $7 million ,respectively, and were recorded in the consolidated statements of operations within other income (loss), net. Where Federal-Mogul receives a fee to service andmonitor these transferred receivables, such fees are sufficient to offset the costs and as such, a servicing asset or liability is not recorded as a result of suchactivities.Certain of the facilities contain terms that require Federal-Mogul to share in the credit risk of the sold receivables. The maximum exposures to Federal-Mogulassociated with certain of these facilities' terms were $11 million and $17 million at December 31, 2015 and 2014, respectively.RestructuringDuring the years ended December 31, 2015 , 2014 and 2013, Federal-Mogul recorded an aggregate of $89 million , $86 million and $40 million inrestructuring charges, respectively. These restructuring charges, primarily consisting of employee costs and headcount reductions, pertain to all restructuringprograms that Federal-Mogul has initiated in order to improve its operating performance.Federal-Mogul has approved and initiated restructuring activities as a part of a broader initiative to improve operating performance and reduce costs. As such,Federal-Mogul will continue to evaluate its activities and opportunities to align its business with its executive management's strategy. Restructuring expenses forthe year ended December 31, 2015 primarily related to Europe, Middle East and Africa locations aimed at reducing production complexities and reducinginefficiencies in indirect and fixed cost structures. Federal-Mogul expects to complete these programs in 2017 and incur additional166ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSrestructuring charges of approximately $10 million . For programs previously initiated, Federal-Mogul expects to complete these programs in 2018 and incuradditional restructuring charges of approximately $10 million.EnergyWe conduct our Energy segment through our majority ownership in CVR. CVR is a diversified holding company primarily engaged in the petroleum refiningand nitrogen fertilizer manufacturing industries through its holdings in CVR Refining, LP (“CVR Refining”) and CVR Partners, LP (“CVR Partners”),respectively. CVR Refining is an independent petroleum refiner and marketer of high value transportation fuels. CVR Partners produces and markets nitrogenfertilizers in the form of urea ammonium nitrate ("UAN") and ammonia. As of December 31, 2015 , following various equity offerings as discussed below, CVRowned 100% of the general partners of CVR Refining and CVR Partners and approximately 66% of the outstanding common units of CVR Refining and 53% ofthe outstanding common units of CVR Partners. Immediately subsequent to the completion of the pending mergers, as discussed below, it is estimated that CVRwill hold approximately 34% of the outstanding common units of CVR Partners and 100% of the general partner interest.As of December 31, 2015 , we owned 82.0% of the total outstanding common stock of CVR. In addition, as of December 31, 2015 , as a result of purchasingcommon units of CVR Refining as discussed below, we directly owned approximately 4.0% of the total outstanding common units of CVR Refining.CVR Partners - Pending MergersOn August 9, 2015, CVR Partners entered into an Agreement and Plan of Merger (the "CVR Partners Merger Agreement") with Rentech Nitrogen Partners,L.P., a publicly traded partnership whose common units are listed on the New York Stock Exchange under the ticker symbol "RNF" ("Rentech Nitrogen"), andRentech Nitrogen GP, LLC ("Rentech Nitrogen GP"), pursuant to which CVR Partners will acquire Rentech Nitrogen and Rentech Nitrogen GP.Under the terms of the CVR Partners Merger Agreement, holders of common units representing limited partner interests in Rentech Nitrogen ("RentechNitrogen common units") eligible to receive consideration will receive 1.04 common units (the "unit consideration") representing limited partner interests in CVRPartners ("CVR Partners common units") and $2.57 in cash, without interest, (the "cash consideration" and together with the unit consideration, the "mergerconsideration") for each Rentech Nitrogen common unit. Phantom units granted and outstanding under Rentech Nitrogen's equity plans and held by an employeewho will continue in the employment of a CVR Partners-affiliated entity upon closing of the CVR Partners Mergers will be canceled and replaced with newincentive awards of substantially equivalent value and on similar terms. Each phantom unit granted and outstanding and held by (i) an employee who will notcontinue in employment of a CVR Partners-affiliated entity, or (ii) a director of Rentech Nitrogen GP will, upon closing of the CVR Partners Mergers, vest in fulland be entitled to receive the merger consideration. The unit consideration is fixed, and the number of units included in the merger consideration will not beadjusted to reflect changes in the price of Rentech Nitrogen common units or CVR Partners common units. CVR Partners is expected to issue approximately 40.7million CVR Partners common units to former Rentech Nitrogen common unitholders pursuant to the CVR Partners Mergers.Rentech Nitrogen owns and operates two fertilizer facilities. The facility located in East Dubuque, Illinois produces primarily ammonia and UAN usingnatural gas as the facility's primary feedstock. The facility located in Pasadena, Texas (the "Pasadena facility") produces ammonium sulfate, ammonium thiosulfateand sulfuric acid, using ammonia and sulfur as the facility's primary feedstocks. Rentech Nitrogen is required to sell or spin off its Pasadena facility as a conditionto closing of the CVR Partners Mergers (unless waived), and Rentech Nitrogen common unitholders may receive additional consideration for the Pasadena facilityin the event such a sale or spin-off is consummated.The completion of the CVR Partners Mergers is subject to satisfaction or waiver of certain closing conditions. In addition, the CVR Partners MergerAgreement contains certain termination rights for both CVR Partners and Rentech Nitrogen and further provides that upon termination of the CVR Partners MergerAgreement, under certain circumstances, either party may be required to make an expense reimbursement payment of $10 million , and Rentech Nitrogen may berequired to pay CVR Partners a termination fee of approximately $31 million .See Note 17 , " Commitments and Contingencies - Energy," for discussion of litigation related to the pending merger.Equity OfferingsOn January 23, 2013, CVR Refining completed its initial public offering ("CVR Refining IPO") of its common units representing limited partner interests,resulting in gross proceeds of $600 million , before giving effect to underwriting167ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSdiscounts and other offering expenses. Included in these proceeds is $100 million paid by us for the purchase of common units of CVR Refining in connection withthe CVR Refining IPO. Additionally, on January 30, 2013, additional common units of CVR Refining were issued pursuant to the underwriters' exercise of theiroverallotment option, resulting in gross proceeds of $90 million , before giving effect to underwriting discounts and other offering costs.On May 20, 2013, CVR Refining completed an underwritten public offering of its common units representing limited partner interests, and on June 10, 2013issued additional common units pursuant to the underwriters' exercise of their overallotment option, resulting in gross proceeds of $406 million before giving effectto underwriting discounts and offering expenses. In addition, we purchased $62 million of common units of CVR Refining in a privately negotiated transactionwith CVR. CVR Refining did not receive any of the proceeds from the sale of common units of CVR Refining to us.On May 28, 2013, Coffeyville Resources, LLC (“CRLLC”), a wholly owned subsidiary of CVR, completed a secondary public offering of common units ofCVR Partners. Additionally, the underwriters were granted an option to purchase additional units at the public offering price, which expired unexercised at the endof the option period. The gross proceeds to CRLLC from this secondary offering were $302 million , before giving effect to underwriting discounts and otheroffering expenses. CVR Partners did not receive any of the proceeds from the sale of common units by CRLLC.As a result of these equity offerings during 2013, our consolidated equity increased by an aggregate of $990 million , of which $902 million was attributableto non-controlling interests and $88 million was attributable to both Icahn Enterprises and Icahn Enterprises Holdings. These offerings are reflected in proceedsfrom subsidiary equity offerings within the consolidated statement of equity changes.On June 30, 2014, CVR Refining completed an underwritten offering (the “CVR Refining Follow-on Offering”), resulting in gross proceeds of $170 millionbefore giving effect to underwriting discounts and other offering expenses. On July 24, 2014, the underwriters exercised their option to purchase additionalcommon units of CVR Refining, resulting in gross proceeds of $15 million . CVR Refining used this $15 million in gross proceeds to redeem an equal amount ofcommon units from CVR Refining Holdings. Additionally, on July 24, 2014, CVR Refining Holdings sold common units to the public in connection with theunderwriters' exercise of their remaining option to purchase additional common units, resulting in gross proceeds of $10 million .As a result of the CVR Refining Follow-on Offering during 2014, our consolidated equity increased by an aggregate of $160 million , of which $150 millionwas attributable to non-affiliated non-controlling interests and $10 million was attributable to both Icahn Enterprises and Icahn Enterprises Holdings. Theseofferings are reflected in proceeds from subsidiary equity offering within the consolidated statement of equity changes.Petroleum BusinessPetroleum business . CVR Refining's petroleum business includes a 115,000 barrels per calendar day ("bpcd") rated capacity complex full coking medium-sour crude oil refinery in Coffeyville, Kansas and a 70,000 bpcd rated capacity complex crude oil refinery in Wynnewood, Oklahoma. The Coffeyville refinery issituated on approximately 440 acres in southeast Kansas, approximately 100 miles from Cushing, Oklahoma, a major crude oil trading and storage hub. TheWynnewood refinery is located approximately 65 miles south of Oklahoma City, Oklahoma and approximately 130 miles from Cushing, Oklahoma.In addition to the refineries, CVR's petroleum business owns and operates the following: (i) a crude oil gathering system with a gathering capacity of over65,000 barrels per day ("bpd") serving Kansas, Oklahoma, Missouri, Nebraska, Colorado and Texas; (ii) a 170,000 bpd pipeline system (supported byapproximately 336 miles of active owned and leased pipeline) that transports crude oil to its Coffeyville refinery from its Broome Station facility near Caney,Kansas; (iii) approximately 7.0 million barrels of company owned and leased crude oil storage capacity; (iv) a rack marketing division supplying product throughtanker trucks directly to customers located in close geographic proximity to Coffeyville, Kansas and Wynnewood, Oklahoma and at throughput terminals onMagellan and NuStar Energy, LP's ("NuStar") refined products distribution systems; and (v) over 4.5 million barrels of combined refinery related storage capacity.Nitrogen fertilizer business . CVR Partners' nitrogen fertilizer business consists of a nitrogen fertilizer manufacturing facility that utilizes a petroleum coke,or pet coke, gasification process to produce nitrogen fertilizer. The facility includes a 1,300 ton-per-day ammonia unit, a 3,000 ton-per-day UAN unit and a gasifiercomplex having a capacity of 89 million standard cubic feet per day of hydrogen. The gasifier is a dual-train facility, with each gasifier able to functionindependently of the other, thereby providing redundancy and improving reliability.168ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSMetalsWe conduct our Metals segment through our indirect wholly owned subsidiary, PSC Metals, Inc. (“PSC Metals”). PSC Metals collects industrial and obsoletescrap metal, processes it into reusable forms and supplies the recycled metals to its customers, including electric-arc furnace mills, integrated steel mills, foundries,secondary smelters and metals brokers. PSC Metals' ferrous products include busheling, plate and structural, shredded, sheared and bundled scrap metal and otherpurchased scrap metal such as turnings (steel machining fragments), cast furnace iron and broken furnace iron. PSC Metals processes the scrap into a size, densityand purity required by customers to meet their production needs. PSC Metals also processes non-ferrous metals, including aluminum, copper, brass, stainless steeland nickel-bearing metals. Non-ferrous products are a significant raw material in the production of aluminum and copper alloys used in manufacturing. PSC Metalsalso operates a steel products business that includes the supply of secondary plate and structural grade pipe that is sold into niche markets for counterweights,piling and foundations, construction materials and infrastructure end-markets.RailcarWe conduct our Railcar segment through our majority ownership interests in ARI and American Railcar Leasing, LLC ("ARL"). Pursuant to a contributionagreement dated September 20, 2013 (the "ARL Contribution Agreement"), we acquired a 75% eco nomic interest in ARL in October 2013. Pursuant to the ARLContribution Agreement, on January 1, 2014, we contributed AEP Leasing, LLC, a wholly owned indirect subsidiary of ours, to ARL.ARI manufactures railcars that are offered for sale or lease, custom and standard railcar components and other industrial products, primarily aluminum andspecial alloy steel castings. These products are sold to various types of companies including shippers, leasing companies, industrial companies, and Class Irailroads. ARI leases railcars that it manufactures to certain markets that include the energy, food and agriculture, chemical, minerals and petrochemical industries.ARI provides railcar services consisting of railcar repair services, ranging from full to light repair, engineering and on-site repairs and maintenance through itsvarious repair facilities, including mini repair shops and mobile repair units.ARL is engaged in the business of leasing railcars to customers with specific requirements whose products require specialized railcars dedicated totransporting, storing, and preserving the integrity of their products. These products are primarily in the energy, food and agriculture, chemical, minerals andpetrochemical industries.Transactions between ARI and ARL have been eliminated in consolidation.As of December 31, 2015 , we owned approximately 59.8% of the total outstanding common stock of ARI and had a 75.0% economic interest in ARL.GamingWe conduct our Gaming segment through our majority ownership in Tropicana. Tropicana currently owns and operates a diversified, multi-jurisdictionalcollection of casino gaming properties. The eight casino facilities it operates feature approximately 392,000 square feet of gaming space with 8,100 slot machines,280 table games and 5,500 hotel rooms with two casino facilities located in Nevada and one in each of Mississippi, Missouri, Indiana, Louisiana, New Jersey andAruba.As of December 31, 2015 , we owned approximately 67.9% of the total outstanding common stock of Tropicana.MiningWe conduct our Mining segment through our majority ownership in Ferrous Resources. As discussed below, we obtained control of and consolidated theresults of Ferrous Resources during the second quarter of 2015.Ferrous Resources acquired certain rights to iron ore mineral resources in Brazil and develops mining operations and related infrastructure to produce and selliron ore products to the global steel industry. Ferrous Resources has acquired significant iron ore assets in the State of Minas Gerais, Brazil, known as Viga, VigaNorte, Esperança, Serrinha and Santanense. In addition, Ferrous Resources has acquired certain mineral rights near Jacuípe in the State of Bahia, Brazil. Of theassets acquired, Viga, Esperança and Santanense are already extracting and producing iron ore, while the other assets are at an early stage of exploration.In response to the current depressed iron ore price environment, Ferrous Resources decided to temporarily suspend Esperança's and Santanense's operationsduring the first quarter of 2015 in order to study alternatives to further reduce cost of production and improve product quality and therefore to improve profitabilityand margin per metric ton.169ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSAcquisitionOn April 25, 2015, IEP Ferrous Brazil LLC ("IEP Ferrous"), a wholly owned subsidiary of ours, entered into an agreement which provided that IEP Ferrouswould launch a tender offer to purchase any and all of the outstanding shares of Ferrous Resources for $0.36 per share and backstop a certain rights offering of upto $40 million . Prior to the tender offer, IEP Ferrous owned approximately 14.1% of the total outstanding shares of Ferrous Resources. As a result of the tender offer, IEPFerrous obtained control of Ferrous Resources through the purchase of additional shares of Ferrous Resources on June 8, 2015 (the acquisition date), and additionalshares of Ferrous Resources on June 26, 2015 for a combined aggregate tender consideration of $180 million . In addition, on June 26, 2015, pursuant to a certainrights offering, we purchased additional shares of Ferrous Resources for an aggregate consideration of $29 million . As a result, as of December 31, 2015 , weowned approximately 77.2% of the total outstanding common stock of Ferrous Resources.Prior to obtaining a controlling interest, we remeasured our equity interest in Ferrous Resources to its acquisition-date fair value of $36 million , resulting in a$4 million loss on investment activities.The acquisitions of the TRW valvetrain business, IEH Auto and Ferrous Resources during the year ended December 31, 2015 are not material, individuallyor in the aggregate, to our consolidated financial statements.Food PackagingWe conduct our Food Packaging segment through our majority ownership in Viskase Companies, Inc. ("Viskase"). Viskase is a worldwide leader in theproduction and sale of cellulosic, fibrous and plastic casings for the processed meat and poultry industry. Viskase currently operates nine manufacturing facilities,six distribution centers and three service centers throughout North America, Europe, South America and Asia. As a result, Viskase is able to sell its products innearly 100 countries throughout the world, deriving approximately 70% of its total net sales from customers located outside the United States.As of December 31, 2015 , we owned approximately 73.3% of the total outstanding common stock of Viskase.Real EstateOur Real Estate segment consists of rental real estate, property development and club operations.As of December 31, 2015 , we owned 15 commercial rental real estate properties. We sold 14 commercial rental properties during the year endedDecember 31, 2015 . Our property development operations are run primarily through Bayswater Development LLC, a real estate investment, management anddevelopment subsidiary that focuses primarily on the construction and sale of single-family and multi-family homes, lots in subdivisions and planned communitiesand raw land for residential development. Our New Seabury development property in Cape Cod, Massachusetts and our Grand Harbor development property inVero Beach, Florida include land for future residential development of approximately 239 and 1,128 units of residential housing, respectively. Both developmentsoperate golf and resort operations as well. During the year ended December 31, 2015 , we sold the Oak Harbor development and operations, which historicallyoperated as part of Grand Harbor. In addition, our Real Estate segment owns an unfinished development property and a partially developed casino, located onapproximately 23 acres in Las Vegas, Nevada, which is located in other assets in our consolidated balance sheets as held for sale as of December 31, 2015 .As of December 31, 2015 and 2014, $27 million and $31 million , respectively, of the net investment in financing leases and net real estate leased to otherswhich is included in property, plant and equipment, net, were pledged to collateralize the payment of nonrecourse mortgages payable.Home FashionWe conduct our Home Fashion segment through our indirect wholly owned subsidiary, WestPoint Home LLC (“WPH”), a manufacturer and distributor ofhome fashion consumer products. WPH is engaged in the business of designing, marketing, manufacturing, sourcing, distributing and selling home fashionconsumer products. WPH markets a broad range of manufactured and sourced bed, bath, basic bedding, and other textile products, including sheets, pillowcases,bedspreads, quilts, comforters and duvet covers, bath and beach towels, bath accessories, bed skirts, bed pillows, flocked blankets, woven blankets and throws andmattress pads. WPH recognizes revenue primarily through the sale of home fashion products to a variety of retail and institutional customers. In addition, WPHreceives a small portion of its revenues through the licensing of its trademarks.170ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSConsolidated Anticipated Future ReceiptsThe following is a summary of the consolidated anticipated future receipts of the minimum lease payments receivable under the financing and operatingmethod on a consolidated basis at December 31, 2015 :Year Amount (in millions)2016 $4982017 4472018 3672019 2592020 157Thereafter 196 $1,9244 .Related Party Transactions .Our amended and restated agreement of limited partnership expressly permits us to enter into transactions with our general partner or any of its affiliates,including, without limitation, buying or selling properties from or to our general partner and any of its affiliates and borrowing and lending money from or to ourgeneral partner and any of its affiliates, subject to limitations contained in our partnership agreement and the Delaware Revised Uniform Limited Partnership Act.The indentures governing our indebtedness contain certain covenants applicable to transactions with affiliates.InvestmentMr. Icahn, along with his affiliates (excluding Icahn Enterprises and Icahn Enterprises Holdings), makes investments in the Investment Funds. During 2015,2014 and 2013, affiliates of Mr. Icahn invested $276 million , $500 million and $45 million , respectively, in the Investment Funds. Subsequent to December 31,2015 , affiliates of Mr. Icahn invested $490 million in the Investment Funds. During the year ended December 31, 2015 , certain affiliates of Mr. Icahn hadredemptions of $36 million from the Investment Funds. As further discussed in Note 7 , " Financial Instruments - Investment Segment and Holding Company," theInvestment Funds were parties to swap agreements with respect to shares of the S&P 500 ETF Trust (“SPDR”). During 2013, certain of the Investment Fundsassigned an aggregate 7.7 million SPDR shares to Koala Holdings LP and its subsidiary (collectively, "Koala"), an affiliate of Mr. Icahn's. In addition, certain ofthe Investment Funds distributed $185 million to Koala in 2013. As of December 31, 2015 and 2014, the total fair market value of investments in the InvestmentFunds made by Mr. Icahn and his affiliates (excluding Icahn Enterprises and Icahn Enterprises Holdings) was approximately $4.1 billion and $4.8 billion ,respectively, representing approximately 55% and 53% , respectively, of the Investment Funds' asset under management.Icahn Capital LP ("Icahn Capital") pays for expenses pertaining to the operation, administration and investment activities of our Investment segment for thebenefit of the Investment Funds (including salaries, benefits and rent). Effective April 1, 2011, based on an expense-sharing arrangement, certain expenses borneby Icahn Capital are reimbursed by the Investment Funds. For the years ended December 31, 2015 , 2014, and 2013, $235 million , $155 million and $113 million ,respectively, was allocated to the Investment Funds based on this expense-sharing arrangement.RailcarARLPrior to October 2, 2013, ARL was a railcar leasing company which was wholly owned and controlled by Mr. Icahn. Earlier in 2013, ARL became a whollyowned subsidiary of IRL Holding LLC ("IRL") which was also wholly owned and controlled by Mr. Icahn. ARL had, for some time, been purchasing railcars fromARI on a non-exclusive basis. In addition, ARL had entered into an agreement to manage a fleet of ARI-produced railcars owned by our subsidiary, AEP LeasingLLC ("AEP Leasing"), a subsidiary of American Enterprise Properties Corporation. On September 20, 2013, AEP purchased the remainder of the management agreement between AEP Leasing and ARL for $21 million ; ARL then distributed$71 million in cash and $171 million in notes receivable (including interest accrued) to IRL.171ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSOn October 2, 2013, our subsidiaries, AEP and IEP Energy Holding LLC, entered into a contribution agreement with ARL and IRL pursuant to which AEPcontributed $279 million in cash to ARL; on January 1, 2014, AEP contributed the fair market value of its 100% interest in AEP Leasing to ARL; and in exchange,AEP received a 75% membership interest in ARL. ARL then incurred additional debt of $381 million (the "ARL Financing") in February 2014. Pursuant to theARL Contribution Agreement, ARL distributed $381 million to IRL on February 24, 2014. In connection with this debt financing transaction, ACF IndustriesHolding LLC, an affiliate, has provided an unconditional guaranty in respect of the debt incurred for the ARL Financing.ARL had a secured promissory note (the "Icahn Note") dated October 28, 2004 from Mr. Icahn for $165 million , bearing interest of prime plus 1.75% .Pursuant to the ARL Contribution Agreement, the Icahn Note (with a balance of $171 million , including accrued interest) was distributed to IRL in October 2013.For the years ended December 31, 2013 ARL received interest income of $6 million .During the year ended December 31, 2015 , ARL distributed an aggregate of $25 million in distributions to IRL and also made a non-resident withholding of$2 million on IRL's behalf. In addition, pursuant to the ARL Contribution Agreement, ARL made a $3 million guaranteed payment to IRL during the year endedDecember 31, 2014.These transactions were approved by a special committee of independent members of our board of directors. The special committee was advised by its ownlegal counsel and independent financial adviser with respect to the transactions. The special committee received an opinion from its financial adviser as to thefairness to us, from a financial point of view, of the consideration paid by us.Agreements with ACF Industries LLCARI has from time to time purchased components from ACF Industries LLC ("ACF"), an affiliate of Mr. Icahn, under a long-term agreement, as well as on apurchase order basis. ACF is a manufacturer and fabricator of specialty railcar parts and miscellaneous steel products. Under the manufacturing services agreemententered into in 1994 and amended in 2005, ACF agreed to manufacture and distribute, at ARI’s instruction, various railcar components. In consideration for theseservices, ARI agreed to pay ACF based on agreed upon rates. The agreement automatically renews unless written notice is provided by ARI.Also in April 2015, ARI entered into a parts purchasing and sale agreement with ACF. The agreement was unanimously approved by the independentdirectors of ARI’s and Icahn Enterprises' audit committee. Under this agreement, ARI and ACF may, from time to time, purchase and sell to each other certainparts for railcars ("Railcar Parts"). ARI also provides a non-exclusive and non-assignable license of certain intellectual property related to the manufacture and saleof Railcar Parts to ARI. The buyer under the agreement must pay the market price of the parts as determined in the agreement or as stated on a public website forall ARI buyers. ARI may provide designs, engineering and purchasing support, including all materials and components to ACF. Subject to certain early terminationevents, the agreement terminates on December 31, 2020.For the years ended December 31, 2015, 2014 and 2013, ARI purchased $18 million , $5 million and less than $1 million , respectively, of components fromACF.In January 2013, ARI entered into a purchasing and engineering services agreement and license with ACF. The agreement was unanimously approved by theindependent directors of ARI’s and Icahn Enterprises' audit committee on the basis that the terms of the agreement were not materially less favorable to ARI thanthose that could have been obtained in a comparable transaction with an unrelated person. Under this agreement, ARI provides purchasing support and engineeringservices to ACF in connection with ACF’s manufacture and sale of tank railcars at its facility in Milton, Pennsylvania. Additionally, ARI has granted ACF anonexclusive, non-assignable license to certain of ARI’s intellectual property, including certain designs, specifications, processes and manufacturing know-howrequired to manufacture and sell tank railcars during the term of the agreement. In November 2015, ARI and ACF amended this agreement to, among otherprovisions, extend the termination date to December 31, 2016 from December 31, 2015, subject to certain early termination events.In consideration for the services and license provided by ARI to ACF in conjunction with the agreement, ACF pays ARI a royalty and, if any, a share of thenet profits ("ACF Profits") earned on each railcar manufactured and sold by ACF under the agreement, in an aggregate amount equal to 30% of such ACF Profits,as calculated under the agreement. ACF Profits are net of certain of ACF’s start-up and shutdown expenses and certain maintenance capital. If no ACF Profits arerealized on a railcar manufactured and sold by ACF pursuant to the agreement, ARI will still be entitled to the royalty for such railcar and will not share in anylosses incurred by ACF in connection therewith. In addition, any railcar components supplied by ARI to ACF for the manufacture of these railcars are provided atfair market value.172ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSUnder the agreement, ACF had the exclusive right to manufacture and sell subject tank railcars for any new orders scheduled for delivery to customers on orbefore January 31, 2014. ARI has the exclusive right to any sales opportunities for tank railcars for any new orders scheduled for delivery after that date andthrough termination of the agreement. ARI also has the right to assign any sales opportunity to ACF, and ACF has the right, but not the obligation, to accept suchsales opportunity. Any sales opportunity accepted by ACF will not be reflected in ARI’s orders or backlog.Revenues of $10 million , $19 million and $12 million for the years ended December 31, 2015 , 2014 and 2013, respectively, were recorded for sales ofrailcar components to ACF and for royalties and profits on railcars sold by ACF.In April 2015, ARI entered into a repair services and support agreement with ACF. The agreement was unanimously approved by the independent directorsof ARI’s and Icahn Enterprises' audit committee. Under this agreement, ARI provides certain sales and administrative and technical services, materials andpurchasing support and engineering services to ACF to provide repair and retrofit services ("Repair Services"). Additionally, ARI provides a non-exclusive andnon-assignable license of certain intellectual property related to the Repair Services for railcars. ARI receives 30% of the net profits (as defined in the agreement)for Repair Services related to all railcars not owned by ARL or its subsidiaries and 20% of the net profits for Repair Services related to all railcars owned by ARLor its subsidiaries, if any, but does not absorb any losses incurred by ACF.Under the agreement, ARI has the exclusive right to sales opportunities related to Repair Services, except for any sales opportunity related to Repair Servicespresented to ACF by ARL with respect to ARL-owned railcars. ARI also has the right to assign any sales opportunities related to Repair Services to ACF, and ACFhas the right, but not the obligation, to accept such sales opportunity. Subject to certain early termination events, the agreement terminates on December 31, 2020.ARI's revenues under this agreement were less than $1 million for the year ended December 31, 2015.In April 2013, AEP Leasing entered into an agreement ("ACF Agreement") with ACF whereby AEP Leasing agreed to purchase 1,050 railcars from ACF in2013 and 2014 for an aggregate purchase price of approximately $150 million . Additionally, AEP Leasing had an option that was exercisable any time prior toSeptember 1, 2014 to purchase an additional 500 railcars for an aggregate purchase price of approximately $70 million . During the second quarter of 2014, AEPLeasing exercised its option to purchase an additional 296 railcars for an aggregate purchase price of $43 million .The ACF Agreement was assumed by ARL in connection with our purchase of a 75% economic interest in ARL. The ACF Agreement was unanimouslyapproved by Icahn Enterprises' audit committee consisting of independent directors, who were advised by independent counsel and an independent financialadvisor on the basis that the terms were not less favorable than those terms that could have been obtained in a comparable transaction with an unaffiliated thirdparty. Under this agreement, purchases of railcars by our Railcar segment from ACF were $9 million , $127 million and $57 million for the years endedDecember 31, 2015 , 2014 and 2013 respectively.In addition to the above purchases, on a contract-by-contract basis, ARL purchased $59 million of railcars from ACF for the year ended December 31, 2015.Insight Portfolio Group LLCInsight Portfolio Group LLC (“Insight Portfolio Group”) is an entity formed and controlled by Mr. Icahn in order to maximize the potential buying power ofa group of entities with which Mr. Icahn has a relationship in negotiating with a wide range of suppliers of goods, services and tangible and intangible property atnegotiated rates.In 2013, Icahn Enterprises Holdings acquired a minority equity interest in Insight Portfolio Group and agreed to pay a portion of Insight Portfolio Group'soperating expenses. In addition to the minority equity interest held by Icahn Enterprises Holdings, certain subsidiaries of Icahn Enterprises Holdings, includingFederal-Mogul, CVR, PSC Metals, ARI, ARL, Tropicana, Viskase and WPH also acquired minority equity interests in Insight Portfolio Group and agreed to pay aportion of Insight Portfolio Group's operating expenses. A number of other entities with which Mr. Icahn has a relationship also acquired equity interests in InsightPortfolio Group and also agreed to pay certain of Insight Portfolio Group's operating expenses. For each of the years ended December 31, 2015 , 2014 and 2013,we and certain of our subsidiaries paid certain of the Insight Portfolio Group's operating expenses of approximately $2 million .173ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS5 .Investments and Related Matters .InvestmentInvestments, and securities sold, not yet purchased consist of equities, bonds, bank debt and other corporate obligations, and derivatives, all of which arereported at fair value in our consolidated balance sheets. See Note 6 , " Fair Value Measurements - Investment," for details of the investments for our Investmentsegment.Our Investment segment assesses the applicability of equity method accounting with respect to their investments based on a combination of qualitative andquantitative factors, including overall stock ownership of the Investment Funds combined with those of our affiliates along with board of directors representation.Our Investment segment applied the fair value option to certain of its investments that would have otherwise been subject to the equity method ofaccounting. As of December 31, 2015 our Investment segment had no investments pursuant to which the fair value option was applied that would otherwise beensubject to the equity method of accounting. As of December 31, 2014, the fair value of these investments was less than $1 million . During the years endedDecember 31, 2015 , 2014 and 2013, our Investment segment recorded losses of $1 million , gains of less than $1 million and gains of $140 million , respectively,associated with these investments. Such amounts are included in net loss or gain from investment activities in our consolidated statements of operations.The portion of trading (losses) gains that relates to trading securities still held by our Investment segment for the years ended December 31, 2015 , 2014 and2013 was approximately $(2.2) billion , $(557) million and approximately $2.7 billion , respectively.Other SegmentsThe carrying value of investments held by our Automotive, Energy, Railcar and Gaming segments and the Holding Company consist of the following: December 31, 2015 2014 (in millions)Equity method investments$323 $298Other investments475 241 $798 $539The Holding Company applies the fair value option to its investments that would otherwise be subject to the equity method of accounting. We recordunrealized gains and losses for the change in fair value of such investments as a component of net gain from investment activities in the consolidated statements ofoperations.174ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS6 .Fair Value Measurements .U.S. GAAP requires enhanced disclosures about investments and non-recurring non-financial assets and non-financial liabilities that are measured andreported at fair value and has established a hierarchal disclosure framework that prioritizes and ranks the level of market price observability used in measuringinvestments or non-financial assets and liabilities at fair value. Market price observability is impacted by a number of factors, including the type of investment andthe characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quotedprices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.Investments and non-financial assets and/or liabilities measured and reported at fair value are classified and disclosed in one of the following categories:Level 1 - Quoted prices are available in active markets for identical investments as of the reporting date. The types of investments included in Level 1 includelisted equities and listed derivatives. We do not adjust the quoted price for these investments, even in situations where we hold a large position.Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fairvalue is determined through the use of models or other valuation methodologies. Investments that are generally included in this category include corporatebonds and loans, less liquid and restricted equity securities and certain over-the-counter derivatives. The inputs and assumptions of our Level 2 investmentsare derived from market observable sources including reported trades, broker/dealer quotes and other pertinent data.Level 3 - Pricing inputs are unobservable for the investment and non-financial asset and/or liability and include situations where there is little, if any, marketactivity for the investment or non-financial asset and/or liability. The inputs into the determination of fair value require significant management judgment orestimation. Fair value is determined using comparable market transactions and other valuation methodologies, adjusted as appropriate for liquidity, credit,market and/or other risk factors.In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within thefair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input tothe fair value measurement in its entirety requires judgment and considers factors specific to the investment. Significant transfers, if any, between the levels withinthe fair value hierarchy are recognized at the beginning of the reporting period when changes in circumstances require such transfers.175ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSInvestmentThe following table summarizes the valuation of the Investment Funds' investments and derivative contracts by the above fair value hierarchy levels as ofDecember 31, 2015 and 2014: December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 TotalAssets(in millions)Investments: Equity securities: Basic materials$563 $— $— $563 $— $— $— $— Communications407 — — 407 2,846 — — 2,846 Consumer, non-cyclical3,684 — — 3,684 2,308 — — 2,308 Consumer, cyclical115 — — 115 436 — — 436 Diversified17 — — 17 23 — — 23 Energy1,461 — — 1,461 1,895 — — 1,895 Financial2,094 — — 2,094 417 — — 417 Funds— — — — — — — — Industrial188 — — 188 79 — — 79 Technology5,795 — — 5,795 5,635 — — 5,635 14,324 — — 14,324 13,639 — — 13,639 Corporate debt: Consumer, cyclical— — 55 55 — — 75 75 Energy— — — — — 19 — 19 Financial— 4 — 4 — 7 — 7 Sovereign debt— 13 — 13 — — — — Utilities— — — — — 28 — 28 — 17 55 72 — 54 75 129 Mortgage-backed securities: Financial— 157 — 157 — 173 — 173 14,324 174 55 14,553 13,639 227 75 13,941Derivative contracts, at fair value(1)— 214 — 214 — 3 — 3 $14,324 $388 $55 $14,767 $13,639 $230 $75 $13,944Liabilities Securities sold, not yet purchased,at fair value: Equity securities: Consumer, non-cyclical$794 $— $— $794 $— $— $— $— Consumer, cyclical— — — — 334 — — 334 794 — — 794 334 — — 334Derivative contracts, at fair value(2)— 33 — 33 — 627 — 627 $794 $33 $— $827 $334 $627 $— $961(1) Included in other assets in our consolidated balance sheets.(2) Included in accrued expenses and other liabilities in our consolidated balance sheets.176ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe changes in investments measured at fair value for which our Investment segment has used Level 3 input to determine fair value are as follows: Year Ended December 31, 2015 2014 (in millions)Balance at January 1$75$287Realized and unrealized losses(20) (100)Gross proceeds— (2)Distribution-in-kind— (110)Balance at December 31$55$75Unrealized losses of $20 million are included in earnings related to Level 3 investments still held at December 31, 2015 by our Investment segment. Totalrealized and unrealized gains and losses recorded for Level 3 investments are reported in net gain from investment activities in our consolidated statements ofoperations.The Investment Funds owned one Level 3 corporate debt investment during 2014. In prior periods, in determining the fair value of this investment, weperformed a yield analysis of comparable loans to which we applied a risk premium. As a result of the underlying company’s performance and bankruptcy filing inthe third quarter of 2014, however, we determined that it was more appropriate to measure the fair value of our debt investment through an enterprise valueanalysis. In addition, during 2014, the Investment Funds made a distribution-in-kind of this corporate debt investment in the amount of $110 million to the HoldingCompany.Other Segments and Holding CompanyThe following table summarizes the valuation of our Automotive, Energy and Gaming segments and our Holding Company investments and derivativecontracts by the above fair value hierarchy levels as of December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 TotalAssets(in millions)Investments$123 $115 $237 $475 $75 $3 $163 $241Derivative contracts, at fair value (1)— 45 — 45 — 47 — 47 $123 $160 $237$520 $75 $50 $163 $288Liabilities Other liabilities$— $3 $— $3 $— $50 $— $50Derivative contracts, at fair value (2)— 3 — 3 — 2 — 2 $— $6 $— $6 $— $52 $— $52(1) Amounts are classified within other assets in our consolidated balance sheets.(2) Amounts are classified within accrued expenses and other liabilities in our consolidated balance sheets.177ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe changes in investments measured at fair value on a recurring basis for which our Gaming segment and Holding Company have used Level 3 input todetermine fair value are as follows: Year Ended December 31, 2015 2014 (in millions)Balance at January 1$154 $138Purchases100 —Transfers (out) in(47) 3Distribution-in-kind— 110Realized and unrealized losses21 (97)Balance at December 31$228 $154Unrealized gains of $18 million are included in earnings related to Level 3 investments still held at December 31, 2015 by our Holding Company and areincluded in net gain (loss) from investment activities in our consolidated statements of operations. Unrealized gains of $3 million are included in earnings related toLevel 3 investments still held at December 31, 2015 by our Gaming segment and are included in selling, general and administrative in our consolidated statementsof operations due to the nature of the gains.During 2015, the Holding Company made a certain investment classified as trading securities of $100 million , which is considered a Level 3 investment dueto unobservable market data. As of December 31, 2015 , the fair value of this investment was $157 million . We determined the fair value of this investment usinginternally developed models and other valuation techniques.During 2015, the Holding Company obtained control of, and consolidated, Ferrous Resources, which was previously considered a Level 3 investment due tounobservable market data. The fair value of our investment in Ferrous Resources immediately prior to obtaining control was $36 million , which was transferredout of Level 3 investment during the second quarter of 2015. See Note 3 , " Operating Units - Mining," for further discussion.Our Gaming segment has certain investments in debt securities that are classified as held-to-maturity since our Gaming segment has the ability and intent tohold these bonds to maturity. These debt securities are initially recorded at a discount to approximate fair value. The debt securities are considered Level 3investments measured on a non-recurring basis and after the initial determination of fair value, our Gaming segment analyzes recoverability of these bonds on aquarterly basis based on its historical collection experience and certain other information. If impairment exists, the debt securities are marked down to fair value.As discussed above, in 2014, the Investment Funds made a distribution-in-kind of a certain Level 3 corporate debt investment in the amount of $110 millionto the Holding Company. As of December 31, 2015 , the fair value of this investment was $55 million . As discussed above, we determined the fair value of thisinvestment using an enterprise value analysis.Assets measured at fair value on a nonrecurring basis for which impairment was determined to exist during the years ended December 31, 2015 and 2014 areset forth in the table below. Refer to Note 13 , " Segment and Geographic Reporting ," for total impairment recorded for each of our reporting segments. December 31, 2015 December 31, 2014 Level 3 Recognized Level 3 RecognizedCategory Asset Loss Asset Loss (in millions)Property, plant and equipment $154 $201 $53 $27Equity method investments — — 10 5Intangible assets 3 2 — —Goodwill 1,491 571 827 103Assets held for sale (included in other assets) 5 14 — —178ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSWe determined the fair value of property, plant and equipment by applying probability weighted, expected present value techniques to the estimated futurecash flows using assumptions a market participant would utilize and through the use of valuation specialists.During the fourth quarter of 2015, there were impairment indicators for our Mining segment, mainly due to decreases in both demand and price of iron ore.As a result, we performed a fair value analysis of our Mining segment's property, plant and equipment as of December 31, 2015. We recorded an impairment lossof $163 million related to certain of our Mining segment's, property, plant and equipment for the year ended December 31, 2015 which is included in the tableabove. In addition, in conjunction with our fair value analysis of our Mining segment's property, plant and equipment, we noted that our Mining segment'sgoodwill was also impaired and thus, we recorded a goodwill impairment charge of $6 million. Due to the complexity of these fair value analyses, we expect tofinalize the impairment assessments of our Mining segment's property, plant and equipment and goodwill during the first quarter of 2016 and any resultingdifference in the amount of the impairment will be adjusted at that time.The fair values of goodwill are based on our goodwill impairment analyses for our Automotive, Energy and Mining segments as of October 1, 2015,December 1, 2015 and December 31, 2015, respectively. The fair values were determined based upon consideration of various valuation methodologies, includingprojected cash flows discounted at rates commensurate with the risks involved, guideline transaction multiples, and multiples of current and future earnings. Referto Note 8 , " Goodwill and Intangible Assets, Net ," for further discussion relating to our goodwill impairment analyses.The following table presents our Automotive segment's defined benefit plan assets measured at fair value on a recurring basis as of December 31, 2015 and2014: December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions)U.S. Plans: Cash$26 $— $— $26 $44 $— $— $44Investments with registered investmentcompanies: Equity securities310 — — 310 314 — — 314Fixed income securities149 — — 149 166 — — 166Real estate and other27 — — 27 25 — — 25Equity securities220 — — 220 231 — — 231 Corporate and other— 22 — 22 — 21 — 21Government17 13 — 30 16 4 — 20Hedge funds— — 86 86 — — 91 91 $749 $35 $86 $870 $796 $25 $91 $912Non-U.S. Plans: Insurance contracts$— $— $40 $40 $— $— $41 $41Investments with registered investmentcompanies: Fixed income securities13 — — 13 10 — — 10Equity securities2 — — 2 1 — — 1Corporate bonds— 2 — 2 — 2 — 2 $15 $2 $40 $57 $11 $2 $41 $54179ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe changes in U.S. and Non-U.S. plan assets measured at fair value for which our Automotive segment has used Level 3 input to determine fair value are asfollows: Year Ended December 31, 2015 2014 (in millions)U.S. Plans: Hedge funds: Balance at January 1$91 $85Realized/unrealized (losses) gains, net(5) 6Purchases and settlements, net— 47Sales, net— (47)Balance at December 31$86 $91 Year Ended December 31, 2015 2014 (in millions)Non-U.S. Plans: Insurance contracts: Balance at January 1$41 $44Realized and unrealized gains, net1 2Purchases and settlements, net6 6Proceeds(4) (5)Foreign currency exchange rate movements(4) (6)Balance at December 31$40 $41U.S. PlansAs of December 31, 2015, plan assets were comprised of 61% equity investments, 23% fixed income investments, and 16% in other investments whichinclude hedge funds. Approximately 73% of the U.S. plan assets were invested in actively managed investment funds. Federal-Mogul's investment strategyincludes a target asset allocation of 50% equity investments, 25% fixed income investments and 25% in other investment types including hedge funds.Investments with registered investment companies, common and preferred stocks, and government debt securities are valued at the closing price reported onthe active market on which the funds are traded. Corporate debt securities are valued by third-party pricing sources. Hedge funds and collective trusts are valued atnet asset value per share.Non-U.S. PlansThe insurance contracts guarantee a minimum rate of return. Federal-Mogul has no input into the investment strategy of the assets underlying the contracts,but they are typically heavily invested in active bond markets and are highly regulated by local law.180ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe following table presents our Food Packaging and Railcar segment's defined benefit plan assets measured at fair value on a recurring basis as ofDecember 31, 2015 and 2014: December 31, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in millions)U.S. and Non-U.S. Plans: Asset category: Cash equivalents$5 $1 $— $6 $5 $1 $— $6Equity securities51 27 — 78 55 28 — 83Fixed income securities18 1 — 19 22 1 — 23Other5 — 21 26 6 — 21 27 $79 $29 $21 $129 $88 $30 $21 $139The changes in U.S. and Non-U.S. plan assets measured at fair value for which our Food Packaging and Railcar segments have used Level 3 input todetermine fair value are as follows: Year Ended December 31, 2015 2014 (in millions)U.S. and Non-U.S. Plans: Balance at January 1$21 $21Realized and unrealized gains, net— 1Purchases and settlements, net— (1)Balance at December 31$21 $217 .Financial Instruments .Certain derivative contracts executed by the Investment Funds with a single counterparty, by our Automotive segment with a single counterparty, by ourEnergy segment with a single counterparty, or by our Holding Company with a single counterparty are reported on a net-by-counterparty basis where a legal rightof offset exists under an enforceable netting agreement. Values for the derivative financial instruments, principally swaps, forwards, over-the-counter options andother conditional and exchange contracts, are reported on a net-by-counterparty basis. As a result, the net exposure to counterparties is reported in either otherassets or accrued expenses and other liabilities in our consolidated balance sheets.Investment Segment and Holding CompanyThe Investment Funds currently maintain cash deposits and cash equivalents with financial institutions. Certain account balances may not be covered by theFederal Deposit Insurance Corporation, while other accounts may exceed federally insured limits. The Investment Funds have prime broker arrangements in placewith multiple prime brokers as well as a custodian bank. The Investment Funds also have relationships with several financial institutions with which they tradederivative and other financial instruments.In the normal course of business, the Investment Funds and the Holding Company may trade various financial instruments and enter into certain investmentactivities, which may give rise to off-balance-sheet risks, with the objective of capital appreciation or as economic hedges against other securities or the market as awhole. The Investment Funds' and the Holding Company's investments may include futures, options, swaps and securities sold, not yet purchased. These financialinstruments represent future commitments to purchase or sell other financial instruments or to exchange an amount of cash based on the change in an underlyinginstrument at specific terms at specified future dates. Risks arise with these financial instruments from potential counterparty non-performance and from changes inthe market values of underlying instruments.181ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSSecurities sold, not yet purchased, at fair value represent obligations to deliver the specified security, thereby creating a liability to repurchase the security inthe market at prevailing prices. Accordingly, these transactions result in off-balance-sheet risk, as the satisfaction of the obligations may exceed the amountrecognized in our consolidated balance sheets. Our investments in securities and amounts due from brokers are partially restricted until we satisfy the obligation todeliver the securities sold, not yet purchased.The Investment Funds and the Holding Company may enter into derivative contracts, including swap contracts, futures contracts and option contracts. TheInvestment Funds may also enter into foreign currency derivative contracts with the objective of capital appreciation or to economically hedge against foreigncurrency exchange rate risks on all or a portion of their non-U.S. dollar denominated investments.The Investment Funds and the Holding Company have entered into various types of swap contracts with other counterparties. These agreements provide thatthey are entitled to receive or are obligated to pay in cash an amount equal to the increase or decrease, respectively, in the value of the underlying shares, debt andother instruments that are the subject of the contracts, during the period from inception of the applicable agreement to its expiration. In addition, pursuant to theterms of such agreements, they are entitled to receive or obligated to pay other amounts, including interest, dividends and other distributions made in respect of theunderlying shares, debt and other instruments during the specified time frame. They are also required to pay to the counterparty a floating interest rate equal to theproduct of the notional amount multiplied by an agreed-upon rate, and they receive interest on any cash collateral that they post to the counterparty at the federalfunds or LIBOR rate in effect for such period.The Investment Funds and the Holding Company may trade futures contracts. A futures contract is a firm commitment to buy or sell a specified quantity of astandardized amount of a deliverable grade commodity, security, currency or cash at a specified price and specified future date unless the contract is closed beforethe delivery date. Payments (or variation margin) are made or received by the Investment Funds and the Holding Company each day, depending on the dailyfluctuations in the value of the contract, and the whole value change is recorded as an unrealized gain or loss by the Investment Funds and the Holding Company.When the contract is closed, the Investment Funds and the Holding Company record a realized gain or loss equal to the difference between the value of the contractat the time it was opened and the value at the time it was closed.The Investment Funds and the Holding Company may utilize forward contracts to seek to protect their assets denominated in foreign currencies and preciousmetals holdings from losses due to fluctuations in foreign exchange rates and spot rates. The Investment Funds' and the Holding Company's exposure to credit riskassociated with non-performance of such forward contracts is limited to the unrealized gains or losses inherent in such contracts, which are recognized in otherassets and accrued expenses and other liabilities in our consolidated balance sheets.The Investment Funds may also enter into foreign currency contracts for purposes other than hedging denominated securities. When entering into a foreigncurrency forward contract, the Investment Funds agree to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed-upon futuredate unless the contract is closed before such date. The Investment Funds record unrealized gains or losses on the contracts as measured by the difference betweenthe forward foreign exchange rates at the dates of entry into such contracts and the forward rates at the reporting date.The Investment Funds were parties to swap agreements (“Swaps”) with respect to shares of SPDR S&P 500 ETF Trust ("SPDR"). In August 2013, certain ofthe Investment Funds assigned their rights and obligations under certain of the Swaps to IEH Investments I LLC (“IEH Investments”), a wholly owned subsidiaryof ours, and Koala Holding LP ("Koala"), an affiliate of Mr. Icahn's. Certain of the Investment Funds assigned swaps referencing an aggregate of 9.7 million SPDRshares to IEH Investments and an aggregate 7.7 million SPDR shares to Koala. In addition, the Investment Funds distributed an aggregate $234 million to IEHInvestments and an aggregate $185 million to Koala, amounts equal to the underlying obligations under the assigned Swaps. During the third quarter of 2014, theSwaps were terminated; IEH Investments held no Swaps as of both December 31, 2015 and 2014.The Investment Funds may also purchase and write option contracts. As a writer of option contracts, the Investment Funds receive a premium at the outsetand then bear the market risk of unfavorable changes in the price of the underlying financial instrument. As a result of writing option contracts, the InvestmentFunds are obligated to purchase or sell, at the holder's option, the underlying financial instrument. Accordingly, these transactions result in off-balance-sheet risk,as the Investment Funds' satisfaction of the obligations may exceed the amount recognized in our consolidated balance sheets. At December 31, 2015 , themaximum payout amounts relating to certain put options written by the Investment Funds were approximately $5.9 billion , of which approximately $5.9 billionrelated to covered put options on existing short positions on certain stock and credit182ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSindices. At December 31, 2014, the maximum payout amounts relating to certain put options written by the Investment Funds were approximately $2.5 billion , ofwhich approximately $2.4 billion related to covered put options on existing short positions on certain stock and credit indices. As of December 31, 2015 and 2014,there were unrealized gains (losses) of $67 million and less than $(1) million , respectively, with respect to these put options.Certain terms of the Investment Funds' contracts with derivative counterparties, which are standard and customary to such contracts, contain certain triggeringevents that would give the counterparties the right to terminate the derivative instruments. In such events, the counterparties to the derivative instruments couldrequest immediate payment on derivative instruments in net liability positions. The aggregate fair value of all of the Investment Funds' derivative instruments withcredit-risk-related contingent features that are in a liability position on December 31, 2015 and 2014 was $33 million and $627 million , respectively.At December 31, 2015 and 2014, the Investment Funds had $883 million and approximately $1.2 billion , respectively, posted as collateral for derivativepositions, including those derivative instruments with credit-risk-related contingent features; these amounts are included in cash held at consolidated affiliatedpartnerships and restricted cash in our consolidated balance sheets.U.S. GAAP requires the disclosure of information about obligations under certain guarantee arrangements. Such guarantee arrangements requiring disclosureinclude contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreementas well as indirect guarantees of the indebtedness of others.Each Investment Fund's assets may be held in one or more accounts maintained for the Investment Fund by its prime brokers or at other brokers or custodianbanks, which may be located in various jurisdictions. The prime brokers and custodian banks are subject to various laws and regulations in the relevantjurisdictions in the event of their insolvency. Accordingly, the practical effect of these laws and their application to the Investment Funds' assets may be subject tosubstantial variations, limitations and uncertainties. The insolvency of any of the prime brokers, custodian banks or clearing entities may result in the loss of all ora substantial portion of the Investment Funds' assets or in a significant delay in the Investment Funds' having access to those assets.Credit concentrations may arise from investment activities and may be impacted by changes in economic, industry or political factors. The Investment Fundsand the Holding Company routinely execute transactions with counterparties in the financial services industry, resulting in credit concentration with respect to thisindustry. In the ordinary course of business, the Investment Funds and the Holding Company may also be subject to a concentration of credit risk to a particularcounterparty.The Investment Funds and the Holding Company seek to mitigate these risks by actively monitoring exposures, collateral requirements and thecreditworthiness of our counterparties.AutomotiveCommodity Price RiskFederal-Mogul's production processes are dependent upon the supply of certain raw materials that are exposed to price fluctuations on the open market. Theprimary purpose of Federal-Mogul's commodity price forward contract activity is to manage the volatility associated with forecasted purchases. Federal-Mogulmonitors its commodity price risk exposures regularly to maximize the overall effectiveness of its commodity forward contracts. Principal raw materials hedgedinclude, copper, tin, high-grade aluminum, aluminum alloy and brass. Forward contracts are used to mitigate commodity price risk associated with raw materials,generally related to purchases forecast for up to 15 months in the future.Federal-Mogul had commodity price hedge contracts outstanding with combined notional values of $28 million and $36 million at December 31, 2015 and2014, respectively, substantially all of which mature within one year in each of the respective periods and all of which were designated as hedging instruments foraccounting purposes. Federal-Mogul has designated these contracts as cash flow hedging instruments and has a net liability position in the amount of $3 millionand $1 million as of December 31, 2015 and 2014, respectively. Federal-Mogul records unrecognized gains and losses in other comprehensive income and makesregular reclassifying adjustments into cost of goods sold when amounts are recognized. Unrealized net losses of $2 million and $1 million were recorded inaccumulated other comprehensive loss as of December 31, 2015 and 2014, respectively.183ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSForeign Currency RiskFederal-Mogul manufactures and sells its products in North America, South America, Asia, Europe and Africa. As a result, Federal-Mogul's financial resultscould be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets in which itmanufactures and sells its products.Federal-Mogul generally tries to use natural hedges within its foreign currency activities, including the matching of revenues and costs, to minimize foreigncurrency risk. Where natural hedges are not in place, Federal-Mogul considers managing certain aspects of its foreign currency activities and larger transactionsthrough the use of foreign currency options or forward contracts. Principal currencies hedged have historically included the euro, British pound and Polish zloty.Foreign currency forwards are also used in conjunction with Federal-Mogul's commodity hedging program. As part of its hedging program, Federal-Mogulattempts to limit hedge ineffectiveness by matching terms of the commodity purchases with the hedging instrument. Federal-Mogul did not hold any foreigncurrency price hedge contracts as of both December 31, 2015 and 2014.Concentrations of Credit RiskFinancial instruments, which potentially subject Federal-Mogul to concentrations of credit risk, consist primarily of accounts receivable and cash investments.Federal-Mogul's customer base includes virtually every significant global light and commercial vehicle manufacturer and a large number of distributors, installersand retailers of automotive aftermarket parts. Federal-Mogul's credit evaluation process and the geographical dispersion of sales transactions help to mitigate creditrisk concentration. No individual customer accounted for more than 10% of Federal-Mogul's net sales for the year ended December 31, 2015. Federal-Mogul hadone customer that accounted for 12% of its net accounts receivable balance as of December 31, 2015 . Federal-Mogul requires placement of cash in financialinstitutions evaluated as highly creditworthy.EnergyCVR is subject to price fluctuations caused by supply conditions, weather, economic conditions, interest rate fluctuations and other factors. To manage pricerisk on crude oil and other inventories and to fix margins on certain future production, CVR from time to time enters into various commodity derivativetransactions.CVR has adopted accounting standards that impose extensive record-keeping requirements in order to designate a derivative financial instrument as a hedge.CVR holds derivative instruments, such as exchange-traded crude oil futures and certain over-the-counter forward swap agreements, which it believes provide aneconomic hedge on future transactions, but such instruments are not designated as hedges for GAAP purposes. Gains or losses related to the change in fair valueand periodic settlements of these derivative instruments are included in other income, net in the consolidated statements of operations.Commodity SwapsCVR Refining enters into commodity swap contracts in order to fix the margin on a portion of future production. Additionally, CVR Refining may enter intoprice and basis swaps in order to fix the price on a portion of its commodity purchases and product sales. The physical volumes are not exchanged and thesecontracts are net settled with cash. The contract fair value of the commodity swaps is reflected on the consolidated balance sheets with changes in fair valuecurrently recognized in the consolidated statements of operations. Quoted prices for similar assets or liabilities in active markets (Level 2) are considered todetermine the fair values for the purpose of marking to market the hedging instruments at each period end. As of December 31, 2015 and 2014, CVR had opencommodity hedging instruments consisting of 2.5 million and 9.1 million barrels of crack spreads primarily to fix the margin on a portion of its future gasoline anddistillate production. Additionally, CVR Refining had open commodity hedging instruments consisting of 1.4 million barrels primarily to fix the price on a portionof its future crude oil purchases or the basis on a portion of its future product sales. The fair value of the outstanding contracts at December 31, 2015 and 2014 wasa net asset of $45 million and $47 million , respectively. For the years ended December 31, 2015 , 2014 and 2013, CVR recognized net (loss) gains of $(36) million, $187 million and $60 million , respectively, which are recorded in other income, net in the consolidated statements of operations with respects of thesecommodity swaps.Interest Rate SwapCoffeyville Resources Nitrogen Fertilizers, LLC ("CRNF") has two floating-to-fixed interest rate swap agreements for the purpose of hedging the interestrate risk associated with a portion of its $125 million floating rate term debt which matures in184ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSApril 2016. The aggregate notional amount covered under these agreements totals $63 million (split evenly between the two agreements) and commenced onAugust 12, 2011 and expired on February 12, 2016. Under the terms of the interest rate swap agreement entered into on June 30, 2011, CRNF will receive afloating rate based on three-month LIBOR and pay a fixed rate of 1.94% . Under the terms of the interest rate swap agreement entered into on July 1, 2011, CRNFwill receive a floating rate based on three-month LIBOR and pay a fixed rate of 1.975% . Both swap agreements are settled every 90 days. The effect of theseswap agreements is to lock in a fixed rate of interest of approximately 1.96% plus the applicable margin paid to lenders over three-month LIBOR as governed bythe CRNF credit agreement. The agreements were designated as cash flow hedges at inception and accordingly, the effective portion of the gain or loss on the swapis reported as a component of accumulated other comprehensive income (loss) and will be reclassified into interest expense when the interest rate swap transactionaffects earnings. The ineffective portion of the gain or loss will be recognized immediately in current interest expense in the consolidated statement of operations.The realized loss on the interest rate swap reclassified from accumulated other comprehensive loss into interest expense was $1 million for each of the years endedDecember 31, 2015 , 2014 and 2013.Consolidated Derivative InformationThe following table presents the consolidated fair values of our derivatives that are not designated as hedging instruments: Asset Derivatives (1) Liability Derivatives (2)Derivatives Not Designated as HedgingInstruments December 31, December 31, 2015 2014 2015 2014 (in millions)Equity contracts $339 $— $122 $552Foreign exchange contracts — 11 19 —Credit contracts 45 1 53 85Interest rate contracts — 1 — —Commodity contracts 46 47 10 —Sub-total 430 60 204 637Netting across contract types (3) (171) (10) (171) (10)Total (3) $259 $50 $33 $627(1) Net asset derivatives are located within other assets in our consolidated balance sheets.(2) Net liability derivatives are located within accrued expenses and other liabilities in our consolidated balance sheets.(3) Excludes netting of cash collateral received and posted. The total collateral posted at December 31, 2015 and 2014 was $883 million and $1.2 billion , respectively, across all counterparties.The following table presents the effects of our derivative instruments not designated as hedging instruments on the statements of operations for the yearsended December 31, 2015 , 2014 and 2013: Gain (Loss) Recognized in Income (1) Year Ended December 31,Derivatives Not Designated as Hedging Instruments 2015 2014 2013 (in millions) Equity contracts $(1) $(1,251) $(1,871)Foreign exchange contracts 160 213 (80)Credit contracts 489 70 —Commodity contracts 57 186 64 $705 $(782)$(1,887) (1) Gains (losses) recognized on derivatives are classified in net gain from investment activities in our consolidated statements of operations for our Investment segment and are included in otherincome (loss), net for all other segments.185ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSAt December 31, 2015 and 2014, the volume of our derivative activities based on their notional exposure, categorized by primary underlying risk, are asfollows: December 31, 2015 December 31, 2014 Long NotionalExposure Short NotionalExposure Long NotionalExposure Short NotionalExposurePrimary underlying risk:(in millions)Credit swaps (1)$187 $2,306 $389 $1,495Equity swaps1,343 14,167 108 11,312Foreign currency forwards— 842 — 1,578Interest rate contracts (2)— 137 — 137Commodity contracts43 643 36 234(1) The short notional amount on our credit default swap positions is approximately $10.0 billion as of December 31, 2015 . However, because credit spreads cannot compress below zero, ourdownside short notional exposure to loss is approximately $2.3 billion .(2) The short notional amount on certain of our interest rate contracts with a three month duration is $16.0 billion as of December 31, 2015 . We assume that interest rates will not fall below zeroand therefore our downside short notional exposure to loss on these contracts is $74 million (of the total $137 million disclosed in the above table).8 .Goodwill and Intangible Assets, Net .Goodwill consists of the following: December 31, 2015 Automotive Energy Railcar Mining Food Packaging Consolidated (in millions)Gross carrying amount, January 1$1,389 $930 $7 $— $3 $2,329Acquisitions75 — — 6 — 81Foreign exchange(6) — — — — (6)Gross carrying amount, December 311,458 930 7 6 3 2,404 Accumulated impairment, January 1(226) (103) — — — (329)Impairment(312) (253) — (6) — (571)Accumulated impairment, December 31(538) (356) — (6) — (900) Net carrying value, December 31$920 $574 $7 $— $3 $1,504186ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2014 Automotive Energy Railcar Food Packaging Consolidated (in millions)Gross carrying amount, January 1$1,360 $930 $7 $3 $2,300Acquisitions32 — — — 32Foreign exchange(3) — — — (3)Gross carrying amount, December 311,389 930 7 3 2,329 Accumulated impairment, January 1(226) — — — (226)Impairment— (103) — — (103)Accumulated impairment, December 31(226) (103) — — (329) Net carrying value, December 31$1,163 $827 $7 $3 $2,000Intangible assets, net consists of the following: December 31, 2015 December 31, 2014 Gross CarryingAmount AccumulatedAmortization NetCarryingValue GrossCarryingAmount AccumulatedAmortization NetCarryingValue (in millions)Definite-lived intangible assets: Customer relationships$1,042 $(409) $633 $957 $(345) $612Developed technology144 (90) 54 120 (77) 43In-place leases121 (73) 48 121 (63) 58Gasification technology license60 (9) 51 60 (7) 53Other47 (23) 24 47 (20) 27 $1,414 $(604) 810 $1,305 $(512) 793Indefinite-lived intangible assets: Trademarks and brand names 260 257Gaming licenses 38 38 298 295Intangible assets, net $1,108 $1,088We recorded amortization expense associated with definite-lived intangible assets for the years ended December 31, 2015 , 2014 and 2013 of $92 million ,$83 million and $81 million , respectively. We utilize the straight-line method of amortization, recognized over the estimated useful lives of the assets.187ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe estimated future amortization expense for our definite-lived intangible assets is as follows:Year Amount (in millions)2016 $912017 902018 812019 792020 78Thereafter 391 $810AutomotiveAs discussed in Note 3 , " Operating Units - Automotive," during 2015, our Automotive segment consummated its TRW valvetrain business acquisitions. Apreliminary valuation of the net assets of the TRW's valvetrain business acquisitions resulted in $209 million allocated to tangible net assets, $74 million togoodwill, $85 million to customer relationships and $22 million to developed technology as of the acquisition date. Because Federal-Mogul is in the process offinalizing certain customary post-closing adjustments, the provisional measurements of net assets are subject to change. The valuation of net assets was performedutilizing cost, income and market approaches.As discussed in Note 3 , " Operating Units - Automotive," during 2015, our Automotive segment consummated its acquisition of IEH Auto. A valuation ofthe net assets of the IEH Auto business acquisition resulted in $331 million allocated to tangible net assets and $2 million allocated to trade names and favorableleases as of the acquisition date. The valuation of net assets was performed utilizing cost, income and market approaches.We perform the annual goodwill impairment test as of October 1 of each year for our Automotive segment, or more frequently if impairment indicatorsexist.The first step of the impairment analysis involves comparing the fair values of these assets to the respective carrying values to determine the potential forgoodwill impairment. The second step of the impairment test, if necessary, involves quantifying the level of goodwill impairment. Our Automotive segment's reporting unit fair values are based upon consideration of various valuation methodologies, one of which is projecting future cashflows discounted at rates commensurate with the risks involved (“Discounted Cash Flow” or “DCF”). Assumptions used in a DCF require the exercise ofsignificant judgment, including judgment about appropriate discount rates and terminal values, growth rates, and the amount and timing of expected future cashflows. The forecasted cash flows are based on current plans and for years beyond that plan, the estimates are based on assumed growth rates. We believe that ourassumptions are consistent with the plans and estimates used to manage the underlying businesses. The discount rates, which are intended to reflect the risksinherent in future cash flow projections, used in a DCF are based on estimates of the weighted-average cost of capital (“WACC”) of a market participant. Suchestimates are derived from our analysis of peer companies and consider the industry weighted average return on debt and equity from a market participantperspective.Powertrain and Motorparts are our only Automotive segment reporting units with goodwill allocated to it. While the fair value of our Automotive segment'sPowertrain reporting unit was substantially in excess of its carrying value, the Motorparts reporting unit failed "Step 1" of the goodwill impairment analysis. Basedon "Step 2" of the goodwill impairment analysis of our Automotive segment's Motorparts reporting unit, we recorded a goodwill impairment charge of $312million for the year ended December 31, 2015. Due to the complexity in "Step 2" goodwill impairment test, we expect to finalize the assessment of our Automotivesegment's goodwill impairment during the first quarter of 2016 and any resulting difference in the amount of the impairment will be adjusted at that time.As discussed above, we recorded a goodwill impairment charge of $312 million for our Automotive segment's Motorparts reporting unit during the yearended December 31, 2015. As a result, there was $349 million of goodwill remaining in our Automotive segment's Motorparts reporting unit at December 31,2015. Moreover, as a result of our recoverability analysis, there were no indications of impairment related to long-lived assets for our Automotive segment’sMotorparts reporting unit.188ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSEnergyWe perform our annual goodwill impairment analysis as of April 30 of each year for our Energy segment, or more frequently if impairment indicators exist.The first step of the impairment analysis involves comparing the fair values of our Energy segment's assets to their respective carrying values to determine thepotential for goodwill impairment. The second step of the impairment test, if necessary, involves quantifying the level of goodwill impairment. The fair value of our Energy segment's reporting unit is based upon consideration of various valuation methodologies, including a DCF analysis and pricingmultiples of current and future earnings observed for comparable public companies. Assumptions used in a DCF require the exercise of significant judgment,including judgment about appropriate discount rates and terminal values, growth rates, and the amount and timing of expected future cash flows. The forecastedcash flows are based on current plans and for years beyond that plan, the estimates are based on assumed growth rates. We believe that our assumptions areconsistent with the plans and estimates used to manage the underlying businesses. The discount rates, which are intended to reflect the risks inherent in future cashflow projections, used in a DCF are based on estimates of the weighted-average cost of capital of a market participant. Such estimates are derived from our analysisof peer companies and consider the industry weighted average return on debt and equity from a market participant perspective.We finalized the annual goodwill impairment test for our Energy segment during the third quarter of 2015. Based on the results of our annual goodwillimpairment test for our Energy segment, while the fair market value of our Energy segment's Petroleum reporting unit was substantially in excess of its carryingvalue, the fair market value of our Energy segment's Fertilizer reporting unit was approximately 1% in excess of its carrying value and was therefore considered atrisk for failing "Step 1" of the goodwill impairment analysis. Based on worsening sales trends for our Energy segment's Fertilizer reporting unit during the fourthquarter of 2015, we performed an interim goodwill impairment test for our Energy segment's Fertilizer reporting unit during the fourth quarter of 2015. Based onthis analysis, our Energy segment recognized a goodwill impairment charge of $253 million , which represented the full amount of the remaining goodwillallocated to this reporting unit. Due to the complexity in "Step 2" goodwill impairment test, we expect to finalize the assessment of our Energy segment's goodwillimpairment during the first quarter of 2016 and any resulting difference in the amount of the impairment will be adjusted at that time.In connection with recording a goodwill impairment charge of $253 million , representing the full amount of the remaining goodwill allocated to our Energysegment's Fertilizer reporting unit, we also performed an impairment test for long-lived assets for our Energy segment's fertilizer business, including finite-livedintangible assets, utilizing estimates of undiscounted future cash flows based on the use of the assets for their remaining useful life for our Energy segment'sfertilizer business. The impairment test did not result in the impairment of any long-lived assets for the year ended December 31, 2015.During the fourth quarter of 2014, based on certain negative trends occurring in the energy markets, particularly with respect to the significant volatility inthe oil markets as a result of a drop in forecasted worldwide demand for crude oil supply and inventories, we determined that goodwill impairment indicatorsexisted in both of our Energy segment's Petroleum and Fertilizer reporting units. Accordingly, we performed a "Step 1" goodwill impairment analysis for ourEnergy segment's reporting units as of December 1, 2014. Our Energy segment’s petroleum reporting unit passed “Step 1” of the goodwill impairment analysis,and therefore, we did not perform “Step 2” of the goodwill impairment analysis for this reporting unit. Because our Energy segment's Fertilizer reporting unitfailed "Step 1" of the goodwill impairment analysis, we performed "Step 2" of the goodwill impairment analysis. Based on "Step 2" results of the goodwillimpairment analysis, we recognized a preliminary impairment charge of $103 million for our Energy segment's Fertilizer reporting unit for the year endedDecember 31, 2014. Due to the complexity of the "Step 2" goodwill impairment test, we finalized the assessment of our Energy segment's goodwill impairmentduring the first quarter of 2015 and noted that no additional adjustments to goodwill were required for the first quarter of 2015.MetalsOur Metals segment performed a review of its intangible assets in the fourth quarter of 2015 and recorded an impairment of $2 million related to its supplierand customer relationship intangible assets.RailcarHistorically, we have performed the annual goodwill impairment test for our Railcar segment on March 1 of each year; however, we have elected to changethis date to November 1 of each year, beginning in 2015. As a result, we performed this189ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSassessment as of March 1 and November 1 during 2015. We believe that this change in the goodwill impairment testing date does not represent a material changeto its method of applying an accounting principle.For purposes of goodwill impairment testing, ARI is the only reporting unit with allocated goodwill. We assess qualitative factors to determine whether it ismore likely than not that the fair value of the reporting unit is greater than its carrying amount. If, however, we had determined that it was more likely than not thatthe fair value of the reporting unit was less than its carrying amount, then we would perform the first step of the two-step goodwill impairment test. In evaluatingwhether it is more likely than not that the fair value of the reporting unit is greater than its carrying amount, we considered various qualitative and quantitativefactors, including macroeconomic conditions, railcar industry trends and the fact that our railcar manufacturing reporting unit has historical positive operating cashflows that we anticipate will continue. After assessing these factors, we determined that it was more likely than not the fair value of the ARI reporting unit wasgreater than its carrying amount, and therefore no further testing was necessary.MiningAs discussed in Note 3 , " Operating Units - Mining," during 2015, we acquired Ferrous Resources. A preliminary valuation of the net assets of the FerrousResources business acquisition resulted in $356 million allocated to tangible net assets and $6 million allocated to goodwill as of the acquisition date. Because ofthe complexity inherent in the valuation process, the provisional measurements of net assets acquired are subject to change. The valuation of net assets wasperformed utilizing cost, income and market approaches.As further discussed in Note 6 , " Fair Value Measurements ," during the fourth quarter of 2015, there were impairment indicators for our Mining segment,mainly due to decreases in both demand and price of iron ore. As a result, we performed a fair value analysis of our Mining segment's property, plant andequipment as of December 31, 2015. In addition, in conjunction with our fair value analysis of our Mining segment's property, plant and equipment, we noted thatour Mining segment's goodwill was also impaired and thus, we recorded a goodwill impairment charge of $6 million. Due to the complexity of these fair valueanalyses, we expect to finalize the impairment assessments of our Mining segment's property, plant and equipment and goodwill during the first quarter of 2016and any resulting difference in the amount of the impairment will be adjusted at that time.9 .Property, Plant and Equipment, Net .Property, plant and equipment, net consists of the following: December 31, Useful Life 2015 2014 (in years) (in millions)Land $549 $424Buildings and improvements4 - 40 2,456 2,353Machinery, equipment and furniture1 - 30 6,047 5,594Assets leased to others15 - 39 3,994 3,546Construction in progress 598 506 13,644 12,423Less: Accumulated depreciation and amortization (4,109) (3,611)Property, plant and equipment, net $9,535 $8,812Assets leased to others are related to our Railcar and Real Estate segments. Included in assets leased to others in the table above are our Railcar segment'srailcars for lease in the amount of approximately $3.6 billion and $3.1 billion as of December 31, 2015 and 2014, respectively. Additionally, included in assetsleased to others in the table above are our Real Estate segment's properties on lease in the amount of $423 million and $450 million as of December 31, 2015 and2014, respectively. Aggregate accumulated depreciation pertaining to assets leased to others is approximately $1.1 billion and $1.0 billion as of December 31, 2015and 2014, respectively.Depreciation and amortization expense related to property, plant and equipment for the years ended December 31, 2015 , 2014 and 2013 was $757 million ,$701 million and $622 million , respectively.190ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSSee Note 6 , " Fair Value Measurements ," for discussion regarding impairments to our property, plant and equipment.10 .Debt .Debt consists of the following: December 31, 2015 2014 (in millions)5.875% senior unsecured notes due 2022 - Icahn Enterprises/Icahn Enterprises Holdings$1,339 $1,3376.00% senior unsecured notes due 2020 - Icahn Enterprises/Icahn Enterprises Holdings1,707 1,7084.875% senior unsecured notes due 2019 - Icahn Enterprises/Icahn Enterprises Holdings1,271 1,2703.50% senior unsecured notes due 2017 - Icahn Enterprises/Icahn Enterprises Holdings1,173 1,171Debt facilities - Automotive2,974 2,584Debt facilities - Energy625 625Debt and credit facilities - Railcar2,684 2,133Credit facilities - Gaming292 295Credit facilities - Food Packaging270 272Other298 193 $12,633 $11,588Senior Unsecured Notes - Icahn Enterprises and Icahn Enterprises Holdings5.875% Senior Unsecured Notes Due 2022On January 29, 2014, we and a wholly owned subsidiary of ours, Icahn Enterprises Finance Corp. (“Icahn Enterprises Finance”), (collectively, the “Issuers”),issued $1.350 billion in aggregate principal amount of 5.875% Senior Notes due 2022 (the “2022 Notes”) pursuant to the purchase agreement, dated January 22,2014 (the “2022 Notes Purchase Agreement”), by and among the Issuers, Icahn Enterprises Holdings, as guarantor, and Jefferies LLC, as initial purchaser (the“2022 Notes Purchaser”). The 2022 Notes were priced at 100.000% of their face amount. The net proceeds from the sale of the 2022 Notes were approximately$1.340 billion after deducting the initial purchaser’s discount and commission and estimated fees and expenses related to the offering. Interest on the 2022 Noteswill be payable on February 1 and August 1 of each year, commencing August 1, 2014. The 2022 Notes Purchase Agreement contains customary representations,warranties and covenants of the parties and indemnification and contribution provisions whereby the Issuers and the Guarantor, on the one hand, and the 2022Notes Purchaser, on the other, have agreed to indemnify each other against certain liabilities.The Issuers issued the 2022 Notes under the indenture dated as of January 29, 2014 (the “2022 Indenture”), among the Issuers, Icahn Enterprises Holdings, asguarantor (the “Guarantor”), and Wilmington Trust Company, as trustee. The 2022 Indenture contains customary events of defaults and covenants relating to,among other things, the incurrence of debt, affiliate transactions, liens and restricted payments. Prior to the maturity of the 2022 Notes, the Issuers may redeemsome or all of the 2022 Notes at certain times by paying a premium as specified in the 2022 Indenture, plus accrued and unpaid interest.The 2022 Notes and the related guarantee are the senior unsecured obligations of the Issuers and rank equally with all of the Issuers’ and the Guarantor’sexisting and future senior unsecured indebtedness and senior to all of the Issuers’ and the Guarantor’s existing and future subordinated indebtedness. The 2022Notes and the related guarantee are effectively subordinated to the Issuers’ and the Guarantor’s existing and future secured indebtedness to the extent of thecollateral securing such indebtedness. The 2022 Notes and the related guarantee are also effectively subordinated to all indebtedness and other liabilities of theIssuers’ subsidiaries other than the Guarantor.191ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSIn connection with the sale of the 2022 Notes, the Issuers and the Guarantor entered into a certain registration rights agreement dated January 29, 2014. Seebelow for further discussion of this registration rights agreement.6.00% Senior Unsecured Notes Due 2020On August 1, 2013, the Issuers issued $500 million aggregate principal amount of 6% Senior Notes due 2020 (the “Initial 2020 Notes”) pursuant to thepurchase agreement, dated July 29, 2013, by and among the Issuers, Icahn Enterprises Holdings, as guarantor, and Jefferies & Company, Inc., as initial purchaser.In addition, as described below, on January 21, 2014, the Issuers issued $1.200 billion in aggregate principal amount of 6% Senior Notes due 2020 (the "Additional2020 Notes" and together with the Initial 2020 Notes, the "2020 Notes") pursuant to the purchase agreement, dated January 8, 2014, by and among the Issuers, theGuarantor, and Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Jefferies LLC and UBS Securities LLC, as initialpurchasers. The net proceeds from the sale of the Initial 2020 Notes and the Additional 2020 Notes were $493 million and approximately $1.217 billion ,respectively, after deducting the initial purchasers' discount and commission and estimated fees and expenses related to the offerings. The Additional 2020 Notesconstitute the same series of securities of the 2020 Notes for purposes of the indenture governing the notes and vote together on all matters with such series. TheAdditional 2020 Notes have substantially identical terms as the Initial 2020 Notes. Interest on the 2020 Notes is payable on February 1 and August 1 of each year,commencing February 1, 2014.The 2020 Notes were issued under and are governed by an indenture, dated August 1, 2013 (the “2020 Indenture”), among the Issuers, the Guarantor andWilmington Trust Company, as trustee. The 2020 Indenture contains customary events of defaults and covenants relating to, among other things, the incurrence ofdebt, affiliate transactions, liens and restricted payments. Prior to the maturity of the 2020 Notes, the Issuers may redeem some or all of the 2020 Notes at certaintimes by paying certain premiums as specified in the 2020 Indenture, plus accrued and unpaid interest.The 2020 Notes and the related guarantee are the senior unsecured obligations of the Issuers and the Guarantor and rank equally with all of the Issuers' andthe Guarantor's existing and future senior unsecured indebtedness and rank senior to all of the Issuers' and the Guarantor's existing and future subordinatedindebtedness. The series of notes constituting the 2020 Notes and the related guarantee are effectively subordinated to the Issuers' and the Guarantor's existing andfuture secured indebtedness to the extent of the collateral securing such indebtedness. The series of notes constituting the 2020 Notes and the related guarantee arealso effectively subordinated to all indebtedness and other liabilities of the Issuers' subsidiaries other than the Guarantor.In connection with the issuance of the Initial 2020 Notes on August 1, 2013, the Issuers and the Guarantor entered into a registration rights agreement datedAugust 1, 2013. On September 26, 2013, we filed an initial registration statement on Form S-4 with respect to the Initial 2020 Notes for the sole purpose ofexchanging the unregistered Initial 2020 Notes for notes that are registered with the SEC ("Exchange Notes"). The exchange offer registration statement on FormS-4 with respect to the Initial 2020 Notes was declared effective on December 9, 2013. Pursuant to the registration rights agreement dated August 1, 2013, wesubsequently commenced the exchange offer to exchange the Initial 2020 Notes for Exchange Notes, which exchange offer expired on January 15, 2014. All of theInitial 2020 Notes were properly tendered in the exchange offer and accepted by us in exchange for the Exchange Notes.In connection with the sale of the Additional 2020 Notes, the Issuers and the Guarantor entered into a certain registration rights agreement dated January 29,2014. See below for further discussion of this registration rights agreement.4.875% Senior Unsecured Notes Due 2019 and 3.50% Senior Notes due 2017On January 21, 2014, the Issuers issued $1.275 billion in aggregate principal amount of our 4.875% Senior Notes due 2019 (the “2019 Notes”) and $1.175billion in aggregate principal amount of our 3.500% Senior Notes due 2017 (the “2017 Notes”) pursuant to the purchase agreement, dated January 8, 2014, by andamong the Issuers, Icahn Enterprises Holdings, as guarantor, and Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC,Jefferies LLC and UBS Securities LLC, as initial purchasers (the “New Notes Purchasers”). The net proceeds from the sale of the 2019 Notes and the 2017 Noteswere $1.269 billion and $1.169 billion , respectively, after deducting the initial purchasers' discount and commission and estimated fees and expenses related to theoffering. Interest on the 2019 Notes and the 2017 Notes is payable on March 15 and September 15 of each year and commenced September 15, 2014.We used the proceeds from the issuance of the Additional 2020 Notes, the 2019 Notes, and the 2017 Notes to refinance our 2010-2012 Notes (as definedbelow). As a result of this refinancing, we purchased $3.500 billion aggregate principal of the 2010-2012 Notes and recognized a loss of $108 million onextinguishment of debt during the first quarter of 2014, and is192ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSreflected in other income, net in the consolidated statements of operations. The 2016 Notes (as defined below) and the 2018 Notes (as defined below) comprisingthe 2010-2012 Notes were discharged in full on February 6, 2014.The Issuers issued the 2019 Notes and the 2017 Notes under an indenture dated as of January 21, 2014 (the “2017 and 2019 Indenture”), among the Issuers,Icahn Enterprises Holdings, as guarantor, and Wilmington Trust Company, as trustee. The 2017 and 2019 Indenture contains customary events of defaults andcovenants relating to, among other things, the incurrence of debt, affiliate transactions, liens and restricted payments. Prior to the maturity of the 2017 or 2019Notes, the Issuers may redeem either the 2017 or 2019 Notes by paying certain premiums as specified in the applicable 2017 or 2022 Indenture, plus accrued andunpaid interest as applicable.In connection with the sale of the Additional 2020 Notes, the 2019 Notes and the 2017 Notes (collectively, the "New Notes") and the 2022 Notes, the Issuersand the Guarantor entered into two registration rights agreements, one dated January 21, 2014 and the other January 29, 2014 (the “Registration RightsAgreements”), with the New Notes Purchasers and the 2022 Notes Purchaser, respectively. Pursuant to the Registration Rights Agreements, on March 28, 2014,we filed an initial Form S-4 with respect to the New Notes and 2022 Notes for the sole purpose of exchanging the unregistered New Notes and the 2022 Notes forExchange Notes. The exchange offer registration statement on Form S-4 with respect to the New Notes and the 2022 Notes was declared effective on April 24,2014. Pursuant to the Registration Rights Agreements, we subsequently commenced the exchange offer to exchange the New Notes and the 2022 Notes forExchange Notes which exchange offer expired on May 23, 2014. Substantially all of the New Notes and 2022 Notes were properly tendered in the exchange offerand accepted by us in exchange for registered Exchange Notes.Senior Unsecured Notes Restrictions and CovenantsThe indentures governing both the New Notes and the 2022 Notes restrict the payment of cash distributions, the purchase of equity interests or the purchase,redemption, defeasance or acquisition of debt subordinated to the senior unsecured notes. The indentures also restrict the incurrence of debt or the issuance ofdisqualified stock, as defined in the indentures, with certain exceptions. In addition, the indentures require that on each quarterly determination date we and theguarantor of the notes (currently only Icahn Enterprises Holdings) maintain certain minimum financial ratios, as defined therein. The indentures also restrict thecreation of liens, mergers, consolidations and sales of substantially all of our assets, and transactions with affiliates.As of December 31, 2015 and 2014, we were in compliance with all covenants, including maintaining certain minimum financial ratios, as defined in theindentures. Additionally, as of December 31, 2015 , based on covenants in the indentures governing our senior unsecured notes, we are not permitted to incuradditional indebtedness.Debt Facilities - AutomotiveFederal-MogulOn December 6, 2013, Federal-Mogul entered into an amendment (the “Federal-Mogul Revolver Amendment”) of its Term Loan and Revolving CreditAgreement dated as of December 27, 2007 (as amended, the “Federal-Mogul Credit Agreement”) to amend its existing revolving credit facility to provide for areplacement revolving credit facility (the “Federal-Mogul Replacement Revolving Facility”). The Federal-Mogul Revolver Amendment, among other things,(i) increased the aggregate commitments available under the Federal-Mogul Replacement Revolving Facility from $540 million to $550 million , (ii) extended thematurity date of the Federal-Mogul Replacement Revolving Facility to December 6, 2018, subject to certain limited exceptions described below, and (iii) amendedFederal-Mogul’s borrowing base to provide it with additional liquidity.Advances under the Federal-Mogul Replacement Revolving Facility generally bear interest at a variable rate per annum equal to (i) the Alternate Base Rate(as defined in the Federal-Mogul Credit Agreement) plus an adjustable margin of 0.50% to 1.00% based on the average monthly availability under the Federal-Mogul Replacement Revolving Facility or (ii) Adjusted LIBOR Rate (as defined in the Federal-Mogul Credit Agreement) plus a margin of 1.50% to 2.00% basedon the average monthly availability under the Federal-Mogul Replacement Revolving Facility. An unused commitment fee of 0.375% also is payable under theterms of the Federal-Mogul Replacement Revolving Facility.Amendment to Credit AgreementOn April 15, 2014, Federal-Mogul Holdings Corporation entered into a tranche B term loan facility (the “ Tranche B Facility”) and a tranche C term loanfacility (the “ Tranche C Facility,” and together with the Tranche B Facility, the “ Federal-Mogul Term Facilities”), and assumed all of the obligations of Federal-Mogul Corporation with respect to the Federal-Mogul Replacement Revolving Facility. The Federal-Mogul Term Facilities were entered into, and the Federal-Mogul Replacement193ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSRevolving Facility was assumed, by Federal-Mogul Holdings Corporation, pursuant to an amendment dated as of April 15, 2014 to the previously existing TermLoan and Federal-Mogul Credit Agreement dated December 27, 2007. Immediately following the closing of the Federal-Mogul Term Facilities, Federal-MogulHoldings Corporation contributed all of the net proceeds from the Facilities to Federal-Mogul Corporation, and Federal-Mogul Corporation repaid its existingoutstanding indebtedness as a borrower under the tranche B and tranche C term loan facilities. In connection with this debt refinancing, our Automotive segmentrecognized a non-cash loss on debt extinguishment of $36 million during the year ended December 31, 2014, which was primarily attributable to the write-off ofdebt discounts, and is reflected in other income, net in the consolidated statements of operations.The Federal-Mogul Term Facilities, among other things, (i) provide for aggregate commitments under the Tranche B Facility of $700 million with a maturitydate of April 15, 2018, (ii) provide for aggregate commitments under the Tranche C Facility of approximately $1.9 billion with a maturity date of April 15, 2021,(iii) increase the interest rates applicable to the Federal-Mogul Facilities as described below, (iv) provide that for all outstanding letters of credit there is acorresponding decrease in borrowings available under the Federal-Mogul Replacement Revolving Facility, (v) provide that in the event that as of a particulardetermination date more than $700 million aggregate principal amount of existing term loans and certain related refinancing indebtedness will become due within91 days of such determination date, the Federal-Mogul Replacement Revolving Facility will mature on such determination date, (vi) provide for additionalincremental indebtedness, secured on a pari passu basis, of an unlimited amount of additional indebtedness if Federal-Mogul meets a financial covenant incurrencetest, and (vii) amend certain other restrictive covenants. Pursuant to the Federal-Mogul Term Facilities, Federal-Mogul Holdings Corporation assumed all of theobligations of Federal-Mogul Corporation with respect to the Federal-Mogul Replacement Revolving Facility.Advances under the Tranche B Facility generally bear interest at a variable rate per annum equal to (i) the Alternate Base Rate plus a margin of 2.00% or (ii)the Adjusted LIBOR Rate plus a margin of 3.00%, subject, in each case, to a minimum rate of 1.00% plus the applicable margin. Advances under the Tranche CFacility generally bear interest at a variable rate per annum equal to (i) the Alternate Base Rate plus a margin of 2.75% or (ii) the Adjusted LIBOR Rate plus amargin of 3.75%, subject, in each case, to a minimum rate of 1.00% plus the applicable margin.The obligations of Federal-Mogul under the Federal-Mogul Credit Agreement are guaranteed by substantially all of its domestic subsidiaries and certainforeign subsidiaries, and are secured by substantially all personal property and certain real property of Federal-Mogul and such guarantors, subject to certainlimitations. The liens granted to secure these obligations and certain cash management and hedging obligations have first priority.The Federal-Mogul Credit Agreement contains certain affirmative and negative covenants and events of default, including, subject to certain exceptions,restrictions on incurring additional indebtedness, mandatory prepayment provisions associated with specified asset sales and dispositions, and limitations on: i)investments; ii) certain acquisitions, mergers or consolidations; iii) sale and leaseback transactions; iv) certain transactions with affiliates; and v) dividends andother payments in respect of capital stock. At December 31, 2015 and 2014, Federal-Mogul was in compliance with all debt covenants.As of December 31, 2015 and 2014, the borrowing availability under the Federal-Mogul Replacement Revolving Facility was $170 million and $516 million ,respectively. As of December 31, 2015 , the outstanding balance on the Federal-Mogul Replacement Revolving Facility was $340 million . As of December 31,2014, there were no borrowings outstanding under the Federal-Mogul Replacement Revolving Facility. Federal-Mogul had $40 million and $34 million of lettersof credit outstanding as December 31, 2015 and 2014, respectively, pertaining to Federal-Mogul's term loan credit facility. To the extent letters of credit associatedwith the Federal-Mogul Replacement Revolving Facility are issued, there will be a corresponding decrease in borrowings available under this facility.The weighted average cash interest rates for debt were approximately 4.4% and 4.7% as of December 31, 2015 and 2014, respectively.IEH AutoOn November 25, 2015, IEH Auto entered into a senior secured asset based revolving credit facility (the "IEH Auto ABL Credit Facility") with Bank ofAmerica as agent, sole lead arranger, and sole bookrunner for $125 million . On January 25, 2016, the ABL Credit Facility was amended and restated to includeCitizens Bank as the documentation agent and to increase the revolver commitments to $210 million . The IEH Auto ABL Credit Facility allows for an increase inborrowings of up to $150 million subject to certain conditions. The IEH Auto ABL Credit Facility is primarily secured by the IEH Auto’s accounts receivablesand inventory194ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS Borrowings under the IEH Auto ABL Credit Facility bear interest at either a base rate (prime rate plus an applicable margin) or LIBOR plus an applicablemargin at the option of IEH Auto. The applicable margin is (i) (a) 1.50% for LIBOR borrowings and (b) 0.50% for prime rate borrowings, in each case if quarterlyaverage excess availability is equal to or exceeds 50% of the lesser of the borrowing base and the total commitments and (ii) (a) 1.75% for LIBOR borrowings and(b) 0.75% for prime rate borrowings, in each case if quarterly average excess availability is less than 50% of the lesser of the borrowing base and the totalcommitments. The IEH Auto ABL Credit Facility also requires the payment of certain customary fees, including an unused line fee of (i) 0.375% if the dailyaverage revolver usage of revolver commitments is equal to or less than 50% of the lesser of the borrowing base and the total commitments and (ii) 0.25% if thedaily average revolver usage revolver commitments is greater than 50% of the lesser of the borrowing base and the total commitments. The IEH Auto ABL Credit Facility contains a fixed charge coverage ratio of 1.0 to 1.0 which is measured annually and during certain trigger events.Additional restrictions relate to the ability to incur liens, engage in certain consolidations, mergers, purchases or sales of assets, dividend payments, incuradditional indebtedness, make advances, investments and loans, enter into certain affiliate transactions, issue equity interests, or create subsidiaries and unrestrictedsubsidiaries. As of December 31, 2015, the IEH Auto ABL Facility had a balance of $75 million and $3 million in letters of credit. As of December 31, 2015, theavailability on the IEH Auto ABL Credit Facility was $30 million . As of December 31, 2015 IEH Auto was in compliance with the covenants of the IEH AutoABL Facility.Debt and Credit Facilities - EnergySenior Secured NotesOn January 23, 2013, a portion of the proceeds from CVR Refining's IPO were utilized to satisfy and discharge the indenture governing the CVR SecondLien Secured Notes due 2017 ("CVR Second Lien Notes"). As a result, all of the outstanding CVR Second Lien Notes were redeemed on January 23, 2013resulting in a gain on extinguishment of debt of $5 million for our Energy segment during 2013.On October 23, 2012, CVR Refining LLC and its wholly owned subsidiary, Coffeyville Finance Inc., completed a private offering of $500 million inaggregate principal amount of 6.50% Senior Notes due 2022 (the "CVR 2022 Notes"). The CVR 2022 Notes were issued at par. CVR Refining LLC received $493million of cash proceeds, net of underwriting fees. The CVR 2022 Notes are fully and unconditionally guaranteed by CVR Refining and each of CVR Refining'sexisting domestic subsidiaries on a joint and several basis. The CVR 2022 Notes mature on November 1, 2022, unless earlier redeemed or repurchased by theissuers. Interest is payable on the CVR 2022 Notes semi-annually on May 1 and November 1 of each year, commencing on May 1, 2013.The CVR 2022 Notes contain customary covenants for a financing of this type that limit, subject to certain exceptions, the incurrence of additionalindebtedness or guarantees, the creation of liens on assets, the ability to dispose of assets, the ability to make certain payments on contractually subordinated debt,the ability to merge, consolidate with or into another entity and the ability to enter into certain affiliate transactions. The CVR 2022 Notes provide that CVRRefining can make distributions to holders of its common units provided, among other things, it has a minimum fixed charge coverage ratio and there is no defaultor event of default under the CVR 2022 Notes. As of December 31, 2015 , CVR Refining was in compliance with the covenants contained in the CVR 2022 Notes.Amended and Restated Asset Based (ABL) Credit FacilityCVR Refining has a senior secured asset based revolving credit facility (the "Amended and Restated ABL Credit Facility") with a group of lenders and WellsFargo Bank, National Association (“Wells Fargo”), as administrative agent and collateral agent. The Amended and Restated ABL Credit Facility has an aggregateprincipal amount of up to $400 million with an incremental facility, which permits an increase in borrowings of up to $200 million subject to receipt of additionallender commitments and certain other conditions. The proceeds of the loans may be used for capital expenditures and working capital and general corporatepurposes of CVR Refining and its subsidiaries. The Amended and Restated ABL Credit Facility provides for loans and letters of credit in an amount up to theaggregate availability under the facility, subject to meeting certain borrowing base conditions, with sub-limits of 10% of the total facility commitment forswingline loans and 90% of the total facility commitment for letters of credit. The Amended and Restated ABL Credit Facility is scheduled to mature on December20, 2017.Borrowings under the Amended and Restated ABL Credit Facility bear interest at either a base rate or LIBOR plus an applicable margin. The applicablemargin is (i) (a) 1.75% for LIBOR borrowings and (b) 0.75% for prime rate borrowings, in195ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSeach case if quarterly average excess availability exceeds 50% of the lesser of the borrowing base and the total commitments and (ii) (a) 2.00% for LIBORborrowings and (b) 1.00% for prime rate borrowings, in each case if quarterly average excess availability is less than or equal to 50% of the lesser of the borrowingbase and the total commitments. The Amended and Restated ABL Credit Facility also requires the payment of customary fees, including an unused line fee of (i)0.40% if the daily average amount of loans and letters of credit outstanding is less than 50% of the lesser of the borrowing base and the total commitments and (ii)0.30% if the daily average amount of loans and letters of credit outstanding is equal to or greater than 50% of the lesser of the borrowing base and the totalcommitments. CVR Refining will also be required to pay customary letter of credit fees equal to, for standby letters of credit, the applicable margin on LIBORloans on the maximum amount available to be drawn under and, for commercial letters of credit, the applicable margin on LIBOR loans less 0.50% on themaximum amount available to be drawn under, and customary facing fees equal to 0.125% of the face amount of, each letter of credit.The Amended and Restated ABL Credit Facility also contains customary covenants for a financing of this type that limit the ability of CVR Refining and itsrespective subsidiaries to, among other things, incur liens, engage in a consolidation, merger, purchase or sale of assets, pay dividends, incur indebtedness, makeadvances, investments and loans, enter into affiliate transactions, issue equity interests, or create subsidiaries and unrestricted subsidiaries. The amended andrestated facility also contains a fixed charge coverage ratio financial covenant, as defined therein. CVR Refining was in compliance with the covenants of theAmended and Restated ABL Credit Facility as of December 31, 2015 .As of December 31, 2015 , CVR Refining and its subsidiaries had availability under the Amended and Restated ABL Credit Facility of $290 million and hadletters of credit outstanding of $28 million . There were no borrowings outstanding under the Amended and Restated ABL Credit Facility as of December 31, 2015. Availability under the Amended and Restated ABL Credit Facility was limited by borrowing base conditions as of December 31, 2015 .CVR Partners Credit FacilityCVR Partner's credit facility includes a term loan facility of $125 million and a revolving credit facility of $25 million , which was undrawn as ofDecember 31, 2015 , with an uncommitted incremental facility of up to $50 million . No amounts were outstanding under the revolving credit facility atDecember 31, 2015 . There is no scheduled amortization of the credit facility, which matures in April 2016. CVR Partners is considering capital structures andrefinancing options associated with the credit facility maturity.Borrowings under the credit facility bear interest based on a pricing grid determined by the trailing four quarter leverage ratio. The initial pricing forEurodollar rate loans under the credit facility is the Eurodollar rate plus a margin of 3.50% or, for base rate loans, the prime rate plus 2.50% . Under its terms, thelenders under the credit facility were granted a first priority security interest (subject to certain customary exceptions) in substantially all of the assets of CRNF andCVR Partners. At December 31, 2015 , the effective interest rate was approximately 4.60%.The credit facility requires CVR Partners to maintain a minimum interest coverage ratio and a maximum leverage ratio and contains customary covenants fora financing of this type that limit, subject to certain exceptions, the incurrence of additional indebtedness or guarantees, the incurrence of liens, disposal of assets,making restricted payments, making investments or acquisitions and entry into sale-leaseback transactions or affiliate transactions. The credit facility provides thatCVR Partners can make distributions to holders of its common units provided, among other things, it is in compliance with the leverage ratio and interest coverageratio on a pro forma basis after giving effect to any distribution and there is no default or event of default under the credit facility. As of December 31, 2015 ,CRNF was in compliance with the covenants contained in the credit facility.On February 9, 2016, CRLLC and CVR Partners entered into a guaranty, pursuant to which CRLLC agreed to guaranty the indebtedness outstanding underCVR Partners' credit facility. If the credit facility becomes due prior to a refinancing by CVR Partners, CRLLC is required to pay the indebtedness pursuant to thisguaranty. CVR Partners' obligation to repay CRLLC for the indebtedness will be pursuant to a promissory note ("the CVR Partners Note"). The terms of the CVRPartners Note will be mutually agreed upon by the parties, provided, the term will be the lesser of two years or such time that CVR Partners obtains third-partyfinancing ("New CVR Partners Debt") of at least $125 million on terms acceptable to CVR Partners with a term of greater than one year from the inception of theNew CVR Partners Debt.196ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSDebt and Credit Facilities - RailcarARI2014 Lease Fleet FinancingIn January 2014, ARI, through its wholly owned subsidiary, Longtrain Leasing I, LLC ("Longtrain Leasing I") refinanced a certain term loan (the "OriginalARI Term Loan") under an amended and restated credit agreement to, among other provisions, increase the aggregate borrowings available thereunder. Inconnection with the refinancing, Longtrain Leasing I received borrowings of $316 million , net of fees and expenses (the "ARI Refinanced Term Loan"). Of thisamount, $194 million was used to refinance the Original ARI Term Loan, resulting in net proceeds of $122 million . In conjunction with the refinancing, ARIincurred a $2 million loss on extinguishment of debt in 2014, which is reflected in other income, net in our consolidated statements of operations. As of December31, 2014, the outstanding principal balance on the ARI Refinanced Term Loan was $309 million . In connection with the lease fleet financing as discussed below,the ARI Refinanced Term Loan was repaid in full during the first quarter of 2015.In October 2014, ARI, through Longtrain Leasing II LLC ("Longtrain Leasing II"), a wholly owned subsidiary of ARI, entered into a lease fleet financingfacility for $100 million under a term loan agreement ("Longtrain Leasing II Term Loan") in order to support the growth of its leasing business. The LongtrainLeasing II Term Loan was scheduled to mature in April 2015. As of December 31, 2014, the outstanding principal balance on the Longtrain Leasing II Term Loanwas $100 million . In connection with the lease fleet financing transaction as discussed below, the Longtrain Leasing II Term Loan was repaid in full during thefirst quarter of 2015.2015 Lease Fleet FinancingOn January 29, 2015, ARI refinanced its lease fleet financing facilities to, among other things, increase the aggregate borrowings thereunder. In connectionwith the refinancing, Longtrain Leasing III LLC ("Longtrain Leasing III") completed a private placement of $626 million in aggregate principal amount of notesconsisting of $250 million in aggregate principal amount of its 2.98% Fixed Rate Secured Railcar Equipment Notes, Class A-1 ("ARI Class A-1 Notes") and $376million in aggregate principal amount of its 4.06% Fixed Rate Secured Railcar Equipment Notes, Class A-2 ("ARI Class A-2 Notes", and collectively with the ARIClass A-1 Notes, the "ARI 2015 Notes"). Of the aggregate principal amount, $409 million was used to refinance ARI's lease fleet financing facilities, resulting innet proceeds of $212 million . In conjunction with the refinancing, our Railcar segment incurred a $2 million loss on debt extinguishment, which is reflected inother income, net in the consolidated statements of operations. This non-cash charge is related to the accelerated write-off of deferred debt issuance costs incurredin connection with the Longtrain Leasing I and Longtrain Leasing II lease fleet financings. As of December 31, 2015 , the outstanding principal balance on the ARI2015 Notes was $601 million . The ARI 2015 Notes have a legal final maturity date of January 17, 2045 and an expected principal repayment date of January 15,2025.The ARI 2015 Notes were issued pursuant to a certain indenture (the "ARI Indenture), dated January 29, 2015 between Longtrain Leasing III and U.S. BankNational Association, as indenture trustee ("ARI Indenture Trustee"). The ARI Class A-1 Notes bear interest at a fixed rate of 2.98% per annum, and the ARI ClassA-2 Notes bear interest at a fixed rate of 4.06% per annum. Interest on the ARI 2015 Notes is payable monthly on the 15th calendar day of each month inaccordance with the flow of funds provisions described in the ARI Indenture. While the legal final maturity date of the ARI 2015 Notes is January 17, 2045, cashflows from Longtrain Leasing III's assets will be applied, pursuant to the flow of funds provisions of the ARI Indenture, so as to achieve monthly targeted principalbalances. Also, under the flow of funds provisions of the ARI Indenture, early amortization of the ARI 2015 Notes may be required in certain circumstances. If theARI 2015 Notes are not repaid by the expected principal repayment date on January 15, 2025, additional interest will accrue at a rate of 5.0% per annum and bepayable monthly according to the flow of funds. Pursuant to the terms of the ARI Indenture, ARI is required to maintain deposits in a liquidity reserve bankaccount equal to nine months of interest payments. As of December 31, 2015 , the liquidity reserve amount was $17 million , and included within restricted cash onthe consolidated balance sheets.Longtrain Leasing III can prepay or redeem the ARI Class A-1 Notes, in whole or in part, on any payment date and the ARI Class A-2 Notes, in whole or inpart, on any payment date occurring on or after January 16, 2018.The Indenture contains covenants which limit, among other things, Longtrain Leasing III's ability to incur additional indebtedness or encumbrances on itsassets, pay dividends or make distributions, make certain investments, perform its business other than specified activities, enter into certain types of transactionswith its affiliates, and sell assets or consolidate197ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSor merge with or into other companies. These covenants are subject to a number of exceptions and qualifications. ARI was in compliance with all of thesecovenants as of December 31, 2015 .The ARI Indenture also contains certain customary events of default, including among others, failure to pay amounts when due after applicable grace periods,failure to comply with certain covenants and agreements, and certain events of bankruptcy or insolvency. Certain events of default under the ARI Indenture willmake the outstanding principal balance and accrued interest on the ARI 2015 Notes, together with all amounts then due and owing to the noteholders, immediatelydue and payable without further action. For other events of default, the ARI Indenture Trustee, acting at the direction of a majority of the noteholders, may declarethe principal of and accrued interest on all ARI 2015 Notes then outstanding to be due and payable immediately.2015 Revolving Credit FacilityIn December 2015, ARI completed a financing of its railcar lease fleet with availability of up to $200 million under a credit agreement ("ARI 2015 CreditAgreement"). The initial amount drawn from the revolving credit facility ("ARI Revolving Loan") obtained at closing amounted to $100 million , net of fees andexpenses. In February 2016, ARI repaid amounts outstanding under the ARI Revolving Loan in full and as of the date of this Report, ARI had borrowingavailability of $200 million under the ARI Revolving Loan.The ARI Revolving Loan accrues interest at a rate per annum equal to Adjusted LIBOR (as defined in the ARI 2015 Credit Agreement) for the applicableinterest period, plus 1.45%, for a rate of 1.9% as of December 31, 2015. Interest is payable on the last day of each 1, 2, or 3-month interest period, the day of anymandatory prepayment, and the maturity date.The ARI Revolving Loan and the other obligations under the ARI 2015 Credit Agreement are fully recourse to ARI and are secured by a first lien andsecurity interest on certain specified railcars (together with specified replacement railcars), related leases, related receivables and related assets, subject to limitedexceptions, a controlled bank account, and following an election by ARI, the Railcar Management Agreement with ARL.Subject to the provisions of the ARI 2015 Credit Agreement, the ARI Revolving Loan may be borrowed and reborrowed until the maturity date. The ARIRevolving Loan may be prepaid at ARI's option at any time without premium or penalty (other than customary LIBOR breakage fees and customaryreimbursement of increased costs). The final scheduled maturity of the ARI Revolving Loan is December 10, 2018, or such earlier date as provided in the CreditAgreement. ARI was in compliance with all of its covenants under the ARI 2015 Credit Agreement as of December 31, 2015.As of December 31, 2015 and 2014, the net book value of the railcars that were pledged as part of the Lease Fleet Financings was $564 million and $277million , respectively.ARLRevolving Credit FacilitiesOn December 19, 2014, ARL closed on the Citizen's Bank revolving credit facility (the "Citizen Bank Revolver"), with Citizen Bank's as the administrativeagent, along with several other participating banks, replacing the ARL Sovereign Revolver. The capacity of the Citizen Bank Revolver is $250 million . Inaddition, under certain circumstances, ARL has the ability to increase the Citizen Bank Revolver credit availability by $100 million to a total availability of $350million . The Citizen Bank Revolver bears interest of LIBOR plus 1.45% with a maturity date of December 19, 2017. The Citizen Bank Revolver is secured byrailcars and related leases and lease receivables and is subject to certain covenants, including maintenance of certain financial ratios related to net worth, utilizationand loan to value. As of December 31, 2015 there were $250 million borrowings under the Citizen Bank Revolver. As of December 31, 2014, there were noborrowings under the Citizen Bank Revolver. In addition, as of both December 31, 2015 and 2014, ARL was in compliance with all covenants of the Citizen BankRevolver.Term NotesARL and its wholly owned subsidiaries have various term loans, all of which are non-recourse to us, some of which bear interest at variable rates based onLIBOR and have maturities between July 14, 2014 and July 16, 2019, and the rest bear interest at rates between 3.35% and 6.95% and have maturities betweenJuly 28, 2014 and February 25, 2020. Substantially all of the term loans are secured by railcars and related leases and lease receivables and are subject to certaincovenants, including maintenance of certain financial ratios related to net worth, utilization and loan to value.198ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSOn February 21, 2014, NCF I, LLC, a subsidiary of ARL, entered into a $250 million term loan (the “NCF I Term Loan”) with Key Equipment Finance, adivision of KeyBank National Association. The NCF I Term Loan matures on February 21, 2019. Interest shall accrue on the principal balance at the rate of 30-dayLIBOR plus 2.0% , with the rate to reset monthly that is payable monthly, commencing on March 20, 2014.On February 25, 2014, NCF II, LLC, a subsidiary of ARL, entered into a $135 million term loan (the “NCF II Term Loan”) with AIG Commercial AssetFinance. The NCF II Term Loan matures on February 25, 2020. Interest shall accrue on the principal balance at the rate of 3.7% that is payable monthly,commencing on March 25, 2014.The NCF I Term Loan and NCF II Term Loan are each subject to a maximum 80% loan to value ratio, to be measured monthly and verified annually bycollateral appraisal. Both of the NCF I Term Loan and the NCF II Term Loan are secured by railcar assets and guaranteed by an affiliated company and includes atangible net worth covenant for the guarantor, among other covenants.As required by the ARL Contribution Agreement, the NCF I Term Loan and the NCF II Term Loans were incurred to finance ARL’s distribution of $381million of cash to IRL Holding LLC, an affiliate of Mr. Icahn, which occurred on February 26, 2014.On March 27, 2014, RCF 2014, LLC, a subsidiary of ARL, entered into a $300 million term loan (the “RCF Term Loan”) with the Royal Bank of ScotlandPLC. Proceeds of the RCF Term Loan, along with $256 million in cash, were used to pay off a certain term note that matured in March 2014 with a certainsubsidiary of ARL. The RCF Term Loan matures on September 27, 2014. Interest shall accrue on the principal balance at the rate of 30-day LIBOR plus 1.45% ,with the rate to reset monthly and is payable monthly, commencing on April 15, 2014. The RCF Term Loan is secured by railcars and related leases and leasereceivables and is subject to certain covenants, including maintenance of certain financial ratios related to net worth, utilization and loan to value. DuringSeptember 2014, as discussed below, a portion of the proceeds from the Credit Agricole Term Loan (as defined below) were used to pay off in full the RCF TermLoan.On June 23, 2014, ARL entered into a certain $12 million term loan (the “Midland Term Loan”). The Midland Term Loan matures on July 1, 2015. OnDecember 23, 2014, ARL entered into an amendment to the Midland Term Loan, which extended the maturity to July 1, 2019. Interest accrues on the principalbalance at the rate of 30-day LIBOR plus 2.0%, with the rate to reset monthly, and is payable monthly, commencing on August 1, 2014. The Midland Term Loan issubject to a maximum 85% loan to value ratio and is secured by railcar assets.On September 3, 2014, RCF 2014, LLC, a subsidiary of ARL, entered into a $375 million term loan with Credit Agricole Corporate and Investment Bank("Credit Agricole Term Loan") with a maturity date of September 3, 2021. Interest shall accrue on the principal balance of the loan at the rate of 30-day LIBORplus 1.75% , with the rate to reset monthly. The loan is payable monthly, commencing on October 3, 2014. Proceeds from the Credit Agricole Term Loan wereused to pay off the RCF Term Loan and a certain revolving credit facility with Sovereign Bank.During the third quarter of 2014, ARL entered into two separate term loan arrangements aggregating $62 million with two financial institutions. These termloans have variable interest rates at 30-day LIBOR plus an applicable margin and have maturity dates of October 1, 2019 and October 26, 2021.During the fourth quarter of 2015, ARL entered into four separate term loan arrangements aggregating $191 million with four financial institutions. Theseterm loans have variable interest rates at 30-day LIBOR plus an applicable margin and have maturity dates ranging from March 29, 2016 to October 30, 2022.The 30-day LIBOR rate was 0.44% and 0.17% at December 31, 2015 and 2014, respectively. ARL's average interest rate on all of its borrowings was 3.41%and 3.16% for the years ended December 31, 2015 and 2014, respectively.As of December 31, 2015 , ARL and its wholly owned subsidiaries were in compliance with all debt covenants with respect to all of their term loans.Bond SecuritizationsOn December 12, 2012, a subsidiary of ARL entered into a bond securitization transaction with RBS Securities, Inc. ("RBS") as the initial purchaser of the$110 million principal amount of the Floating Secured Railcar Equipment Notes, Class A-1 ("ARL 2012 Class A-1 Notes"), and the $106 million principal amountof the Fixed Rate Secured Railcar Equipment Notes, Class A-2 ("ARL 2012 Class A-2 Notes") and, together with the ARL Class A-1 Notes, collectively referredto herein as the "ARL 2012 Bond Securitization Notes"). The ARL 2012 Class A-1 Notes bear interest of LIBOR plus 1.75% ; the ARL199ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS2012 Class A-2 Notes bear a fixed interest rate of 3.81% . Interest on each of the ARL 2012 Bond Securitization Notes are payable on the 15th calendar day ofeach month starting on January 15, 2013. The expected principal repayment date for the ARL 2012 Bond Securitization Notes is December 15, 2022 and the legalfinal maturity date for the ARL 2012 Bond Securitization Notes is December 15, 2042.On June 25, 2014, a certain subsidiary of ARL entered into a bond securitization transaction with RBS as the initial purchaser of the $175 million principalamount of the Fixed Secured Railcar Equipment Notes, Class A-1 ("ARL 2014 Class A-1 Notes"), and the $150 million principal amount of the Fixed RateSecured Railcar Equipment Notes, Class A-2 ("ARL 2014 Class A-2 Notes" and, together with the ARL 2014 Class A-1 Notes, collectively referred to herein asthe "ARL 2014 Bond Securitization Notes"). Of the proceeds from the ARL 2014 Bond Securitization Notes, $156 million were used to pay down the RCF TermLoan. The ARL 2014 Class A-1 Notes bear a fixed interest rate of 2.92% ; the ARL 2014 Class A-2 Notes bear a fixed interest rate of 3.97% . Interest on each ofthe ARL 2014 Bond Securitization Notes is payable on the 15th calendar day of each month starting on July 15, 2014. The expected principal repayment date forthe ARL 2014 Bond Securitization Notes is June 15, 2024 and the legal final maturity date for the ARL 2014 Bond Securitization Notes is June 15, 2044.Each of the ARL 2012 Bond Securitization Notes and ARL 2014 Bond Securitization Notes is subject to certain covenants, including the maintenance ofcertain financial ratios related to net worth, utilization and debt service coverage. As December 31, 2015 , ARL was in compliance with all debt covenants withrespect to the ARL 2012 Bond Securitization Notes and ARL 2014 Bond Securitization Notes.Credit Facilities - GamingCredit FacilitiesOn November 27, 2013, Tropicana entered into (i) a senior secured first lien term loan facility in an aggregate principal amount of $300 million , issued at adiscount of 0.5% (the “Tropicana Term Loan Facility”) and (ii) a senior secured first lien revolving credit facility in an aggregate principal amount of $15 million(the “Tropicana Revolving Facility” and, together with the Tropicana Term Loan Facility, the “Tropicana Credit Facilities”). Commencing on December 31, 2013,the Tropicana Term Loan Facility amortizes in equal quarterly installments in an amount of $750,000 , with any remaining balance payable on the final maturitydate of the Tropicana Term Loan Facility, which is November 27, 2020. Amounts under the Tropicana Revolving Facility are available to be borrowed and re-borrowed until its termination on November 27, 2018.The Tropicana Term Loan Facility accrues interest, at Tropicana's option, at a per annum rate equal to either (i) the LIBO Rate (as defined in the CreditAgreement) (subject to a 1.00% floor) plus an applicable margin equal to 3.00%, or (ii) the alternate base rate (as defined in the Credit Agreement) (subject to a2.00% floor) plus an applicable margin equal to 2.00%; such that in either case, the applicable interest rate shall not be less than 4.0%. The Tropicana RevolvingFacility accrues interest, at Tropicana's option, at a per annum rate equal to either (i) the LIBO Rate plus an applicable margin ranging from 2.00% (if the total netleverage ratio is less than 2.50:1.00) to 2.50% (if the total net leverage ratio is greater than or equal to 3.00:1.00); or (ii) the alternate base rate plus an applicablemargin ranging from 1.00% (if the total net leverage ratio is less than 2.50:1.00) to 1.50% (if the total net leverage ratio is greater than or equal to 3.00:1.00). Theinterest rate increases by 2.00% following certain defaults. As of December 31, 2015 , the interest rate on the Tropicana Term Loan Facility was 4.0% and theTropicana Revolving Facility was undrawn and had $15 million of availability.The Tropicana Credit Facilities are guaranteed by all of Tropicana's domestic subsidiaries, subject to limited exceptions, and additional subsidiaries may berequired to provide guarantees, subject to limited exceptions. The Tropicana Credit Facilities are secured by a first lien on substantially all assets of Tropicana andthe domestic subsidiaries that are guarantors, with certain limited exceptions. Subsidiaries that become guarantors will be required, with certain limited exceptions,to provide first liens and security interests in substantially all their assets to secure the Tropicana Credit Facilities.At the election of Tropicana and subject to certain conditions, including a maximum senior secured net leverage ratio of 3.25:1.00, the amount availableunder the Tropicana Credit Facilities may be increased, which increased amount may be comprised of additional term loans and revolving loans.The Tropicana Term Loan Facility may be prepaid at the option of Tropicana at any time without penalty (other than customary LIBO Rate breakage fees).Tropicana is required to make mandatory payments of the Tropicana Credit Facilities with (i) net cash proceeds of certain asset sales (subject to reinvestmentrights), (ii) net cash proceeds from certain issuances of debt and equity (with certain exceptions), (iii) up to 50% of annual excess cash flow (as low as 0% ifTropicana's total leverage ratio is below 2.75:1.00), and (iv) certain casualty proceeds and condemnation awards (subject to reinvestment rights).200ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSKey covenants binding Tropicana and its subsidiaries include (i) limitations on indebtedness, liens, investments, acquisitions, asset sales, dividends and otherrestricted payments, and affiliate and extraordinary transactions, and (ii) if, as of the last day of any fiscal quarter, the amount of outstanding revolving loansexceed 35% of the permitted borrowing under the Tropicana Revolving Facility, compliance with a maximum senior secured net leverage ratio test of 3.25:1.00.Key default provisions include (i) failure to repay principal, interest, fees and other amounts owing under the facility, (ii) cross default to certain otherindebtedness, (iii) the rendering of certain judgments against Tropicana or its subsidiaries, (iv) failure of security documents to create valid liens on propertysecuring the Tropicana Credit Facilities and to perfect such liens, (v) revocation of casino, gambling, or gaming licenses, (vi) Tropicana's or its materialsubsidiaries' bankruptcy or insolvency; and (vii) the occurrence of a Change of Control (as defined in the Credit Agreement). Many defaults are also subject to cureperiods prior to such default giving rise to the right of the lenders to accelerate the loans and to exercise remedies. Tropicana was in compliance with the covenantsof the Tropicana Term Loan Facility at December 31, 2015 .Credit Facility - Food PackagingCredit FacilityIn connection with certain financing transactions, on January 30, 2014, Viskase entered into a credit agreement with UBS AG, Stamford Branch, asAdministrative Agent and Collateral Agent, and the Lenders parties thereto, providing for a $275 million senior secured covenant light term loan facility (“ViskaseTerm Loan”). A portion of the proceeds from the Viskase Term Loan was used to satisfy and discharge all of the existing Viskase 9.875% Notes and Viskaserecorded a loss of $16 million on debt extinguishment during the year ended December 31, 2014, which is reflected in other income, net in the consolidatedstatements of operations.The Viskase Term Loan bears interest at a LIBO Rate plus 3.25% (with the LIBO Rate carrying a 1.00% floor), or at a Base Rate equal to the sum of (1) thegreatest of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 0.50%, (c) one-month LIBOR plus 1.0%, or (d) 2.0%, plus (2) 2.25%. The Viskase TermLoan has a 1% per annum amortization with a maturity date of January 30, 2021. The Viskase Term Loan is subject to certain additional mandatory prepaymentsupon asset sales, incurrence of indebtedness not otherwise permitted, and based upon a percentage of excess cash flow. Prepayments on the Viskase Term Loanmay be made at any time, subject to a prepayment premium of 1% for certain prepayments during the first six months of the term.Indebtedness under the Viskase Term Loan is secured by liens on substantially all of Viskase’s domestic and Mexican assets, with liens on (i) the Fixed AssetPriority Collateral, to be contractually senior to the liens securing the Revolving Credit Facility pursuant to the intercreditor agreement, (ii) the ABL PriorityCollateral, to be contractually subordinate to the liens securing the Revolving Credit Facility pursuant to the intercreditor agreement, and (iii) all other assets, to becontractually pari passu with the liens securing the Revolving Credit Facility pursuant to the intercreditor agreement. Viskase's future direct or indirect materialdomestic subsidiaries are required to guarantee the obligations under the Viskase Term Loan, and to provide security by liens on their assets as described above.OtherIn its foreign operations, Viskase has unsecured lines of credit with various banks providing $8 million of availability as of December 31, 2015 .OtherSecured Revolving Credit Agreement - Home FashionOn November 24, 2015, WPH entered into a $30 million loan and security agreement (“WPH Facility”) with a nationally recognized bank, as administrativeagent and lender, subject to monthly borrowing base calculations and may be used for letters of credit up to $10 million . The WPH Facility has the ability toincrease to $55 million upon meeting certain criteria. The WPH Facility replaces a certain letter of credit facility which expired on October 15, 2015. Under thefive-year agreement, which matures on November 24, 2020, borrowings under the WPH Facility bear interest at LIBOR plus 1.5%. WPH pays an unused line feeat a 0.25% per annum rate on any increase in the WPH Facility above $30 million that is unused during any month. Obligations under the WPH Facility aresecured by WPH's U.S. receivables, U.S. inventory and certain other assets. The WPH Facility is also subject to certain fixed charge coverage ratio under certainconditions. As of December 31, 2015 there were no borrowings under the WPH Facility. The letters of credit under the WPH Facility are subject to 0.50% annualfee on the outstanding face amount of the letters of credit issued under the WPH Facility, which face amount as of December 31, 2015 was $5 million .201ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSConsolidated MaturitiesThe following is a summary of the maturities of our debt and capital lease obligations as of December 31, 2015 :Year Debt Capital Leases (in millions)2016 $779 $272017 1,563 72018 1,189 52019 1,619 52020 2,050 3Thereafter 5,378 38 $12,578 $8511 .Pension, Other Post-employment Benefits and Employee Benefit Plans .Federal-Mogul, ARI and Viskase each sponsor several defined benefit pension plans (the ''Pension Benefits''). Additionally, Federal-Mogul and Viskase eachsponsors health care and life insurance benefits (''Other Post-Employment Benefits'') for certain employees and retirees around the world. ARI also previouslysponsored a post-employment medical benefit plan that provided access to healthcare for certain retired employees; this plan was terminated effective December31, 2013. The Pension Benefits are funded based on the funding requirements of federal and international laws and regulations, as applicable, in advance of benefitpayments and the Other Benefits as benefits are provided to participating employees. As prescribed by applicable U.S. GAAP, Federal-Mogul, ARI and Viskaseeach uses, as applicable, appropriate actuarial methods and assumptions in accounting for its defined benefit pension plans, non-pension post-employment benefits,and disability, early retirement and other post-employment benefits. The measurement date for all defined benefit plans is December 31 of each year.Components of net periodic benefit cost (credit) for the years ended December 31, 2015 , 2014 and 2013 are as follows: Pension Benefits Other Post-Employment Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 (in millions)Service cost$19 $16 $16 $— $— $—Interest cost66 76 69 13 15 11Expected return on plan assets(71) (74) (70) — — —Amortization of actuarial losses26 10 27 5 3 6Amortization of prior service credit— — — (4) (5) (9)Settlement (gain) loss— (2) 1 — — —Curtailment gain(2) — — — — (40) $38 $26 $43 $14 $13$(32)202ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSAutomotiveThe following provides disclosures for our Automotive segment's benefit obligations, plan assets, funded status, recognition in the consolidated balancesheets and inputs and valuation assumptions: Pension Benefits OtherPost-Employment Benefits United States Plans Non-U.S. Plans 2015 2014 2015 2014 2015 2014 (in millions)Change in benefit obligation: Benefit obligation, beginning of year$1,291 $1,184 $575 $450 $368 $335Service cost3 3 16 12 — —Interest cost48 52 10 16 13 15Employee contributions— — — — — —Benefits paid(89) (96) (24) (28) (23) (26)Medicare subsidies received— — — — 3 1Plan amendments— — — — — 8Curtailments— — (3) (1) — —Settlements— (3) — — — —Actuarial losses (gains) and changes in actuarialassumptions(32) 151 (75) 112 (35) 36Net transfers in (out)— — 45 73 — —Currency translation— — (57) (59) (3) (1)Benefit obligation, end of year1,221 1,291 487 575 323 368 Change in plan assets: Fair value of plan assets, beginning of year912 909 54 55 — —Actual return on plan assets(27) 43 2 3 — —Employee contributions— — — — — —Company contributions74 56 30 30 20 25Benefits paid(89) (96) (24) (28) (23) (26)Expenses— — — — — —Medicare subsidies received— — — — 3 1Currency translation— — (5) (6) — —Fair value of plan assets, end of year870 912 57 54 — —Funded status of the plan$(351) $(379) $(430) $(521) $(323) $(368) Amounts recognized in the consolidated balance sheets: Net liability recognized$(351) $(379) $(430) $(521) $(323) $(368) Amounts recognized in accumulated other comprehensiveloss, inclusive of tax impacts: Net actuarial loss$452 $409 $72 $151 $56 $95Prior service cost (credit)— — 1 2 (10) (14)Total$452 $409 $73 $153 $46 $81203ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSWeighted-average assumptions used to determine the benefit obligation as of December 31, 2015 and 2014: Pension Benefits OtherPost-Employment Benefits United States Plans Non-U.S. Plans December 31, December 31, 2015 2014 2015 2014 2015 2014 (in millions)Discount rate4.15% 3.85% 2.72% 1.77% 4.18% 3.84%Rate of compensation increasen/a n/a 3.19% 3.16% n/a n/aWeighted-average assumptions used to determine net periodic benefit cost (credit) for the years ended December 31, 2015 and 2014: Pension Benefits OtherPost-Employment Benefits United States Plans Non-U.S. Plans Year Ended December 31, Year EndedDecember 31, 2015 2014 2015 2014 2015 2014 (in millions)Discount rate3.85% 4.55% 1.77% 3.49% 3.84% 4.45%Expected return on plan assets6.55% 6.95% 3.52% 4.18% n/a n/aRate of compensation increasen/a n/a 3.16% 3.13% n/a n/aFederal-Mogul evaluates its discount rate assumption annually as of December 31 for each of its retirement-related benefit plans based upon the yield of highquality, fixed-income debt instruments, the maturities of which correspond to expected benefit payment dates.Certain pension plans sponsored by Federal-Mogul invest in a diversified portfolio consisting of an array of asset classes that attempts to maximize returnswhile minimizing volatility. These asset classes include developed market equities, emerging market equities, private equity, global high quality and high yieldfixed income, real estate and absolute return strategies.Federal-Mogul's expected return on assets is established annually through analysis of anticipated future long-term investment performance for the plan basedupon the asset allocation strategy. While the study gives appropriate consideration to recent fund performance and historical returns, the assumption is primarily along-term prospective rate. The study was performed in December 2015 resulting changes to the expected long-term rate of return on assets. The weighted-averagelong-term rate of return on assets for the U.S. plans decreased from 6.6% at December 31, 2014 to 5.7% at December 31, 2015. The expected long-term rate ofreturn on plan assets used in determining pension expense for non-U.S. plans is determined in a similar manner to the U.S. plans and decreased from 3.5% atDecember 31, 2014 to 3.2% at December 31, 2015.The U.S. investment strategy mitigates risk by incorporating diversification across appropriate asset classes to meet the plan's objectives. It is intended toreduce risk, provide long-term financial stability for the plan and maintain funded levels that meet long-term plan obligations while preserving sufficient liquidityfor near-term benefit payments. Risk assumed is considered appropriate for the return anticipated and consistent with the total diversification of plan assets.As of December 31, 2015, Federal-Mogul's plan assets were comprised of 61% equity investments, 23% fixed income investments, and 16% in otherinvestments which include hedge funds. Federal-Mogul's investment strategy, which includes a target asset allocation of 50% equity investments, 25% fixedincome investments and 25% in other investment types including hedge funds. Approximately 77% of the U.S. plan assets were invested in actively managedinvestment funds.The majority of the assets of the non-U.S. plans are invested through insurance contracts. The insurance contracts guarantee a minimum rate of return.Federal-Mogul has no input into the investment strategy of the assets underlying the contracts, but they are typically heavily invested in active bond markets andare highly regulated by local law. The target asset allocation for the non-U.S. pension plans is 70% insurance contracts, 25% debt investments and 5% equityinvestments.204ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSRefer to Note 6 , “ Fair Value Measurements ,” for discussion of the fair value of each major category of plan assets, including the inputs and valuationtechniques used to develop the fair value measurements of the plans' assets, at December 31, 2015 and 2014.Information for defined benefit plans with projected benefit obligations in excess of plan assets: Pension Benefits OtherPost-Employment Benefits United States Plans Non-U.S. Plans December 31, December 31, 2015 2014 2015 2014 2015 2014 (in millions)Projected benefit obligation$1,221 $1,291 $486 $574 $323 $368Fair value of plan assets870 912 56 53 — —Information for pension plans with accumulated benefit obligations in excess of plan assets: Pension Benefits United States Plans Non-U.S. Plans December 31, 2015 2014 2015 2014 (in millions)Projected benefit obligation$1,221 $1,291 $482 $555Accumulated benefit obligation1,221 1,291 445 514Fair value of plan assets870 912 53 42The accumulated benefit obligation for all pension plans was approximately $1.7 billion and $1.8 billion as of December 31, 2015 and 2014, respectively.U.S. Welfare Benefit PlanIn May 2013, Federal-Mogul ceased operations at one of its U.S. manufacturing locations. The resulting reduction in the average remaining future serviceperiod to the full eligibility date of the remaining active plan participants in Federal-Mogul's U.S. Welfare Benefit Plan triggered the recognition of an OPEBcurtailment gain of $19 million , which is included as a reduction to selling, general and administrative in the consolidated statements of operations, for the yearended December 31, 2013. Additionally, in the third quarter of 2013, Federal-Mogul completed the sale of its fuel manufacturing facility and research anddevelopment center located in the U.S., resulting in the termination of certain employees that participated in Federal-Mogul's U.S. Welfare Benefit Plan. Theresulting reduction in the average remaining future service period to the full eligibility date of the remaining active plan participants in Federal-Mogul's U.S.Welfare Benefit Plan triggered the recognition of an additional OPEB curtailment gain of $19 million , which is included in the determination of net loss ondisposition of assets within other income, net in the consolidated statements of operations for the year ended December 31, 2013. Our Automotive segmentrecorded aggregate OPEB curtailment gains of $38 million for the year ended December 31, 2013.The assumed health care and drug cost trend rates used to measure next year's post-employment healthcare benefits are as follows: Other Post-Employment Benefits 2015 2014Initial health care cost trend rate6.97% 7.25%Ultimate health care cost trend rate5.00% 5.00%Year ultimate health care cost trend rate reached2022 2022205ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe assumed health care cost trend rate has a significant impact on the amounts reported for OPEB plans. The following table illustrates the sensitivity to achange in the assumed health care cost trend rate: Total Service andInterest Cost APBO (in millions)100 basis point (“bp”) increase in health care cost trend rate$1 $28100 bp decrease in health care cost trend rate(1) (24)Estimated amounts to be amortized from accumulated other comprehensive loss into net period benefit cost for 2016 based on 2015 plan measurements are$15 million , consisting primarily of amortization of net actuarial loss in the U.S. pension plans.Federal-Mogul's projected benefit payments from the plans are estimated as follows: Pension Benefits Other Post-EmploymentBenefitsYears United States Plans Non-U.S. Plans (in millions)2016 $84 $24 $242017 85 24 242018 88 23 242019 88 24 242020 87 25 242021-2025 399 135 110Federal-Mogul expects to contribute approximately $72 million to its pension plans in fiscal 2016.Federal-Mogul also maintains certain defined contribution pension plans for eligible employees. Effective January 1, 2013, Federal-Mogul amended its U.S.defined contribution plan to allow for an enhanced company match and company provided age-based contributions for eligible U.S. salaried and non-union hourlyemployees. The total expenses attributable to Federal-Mogul's defined contribution savings plan were $45 million , $45 million and $42 million for the years endedDecember 31, 2015 , 2014 and 2013, respectively.Other BenefitsFederal-Mogul accounts for benefits to former or inactive employees paid after employment but before retirement pursuant to FASB ASC Topic 712,Compensation - Nonretirement Post-employment Benefits . The liabilities for such U.S. and European post-employment benefits were $26 million and $25 millionat December 31, 2015 and 2014, respectively.Railcar and Food PackagingARI is the sponsor of three defined benefit pension plans, two of which cover certain employees at designated repair facilities. All three of ARI's definedbenefit pension plans are frozen and no additional benefits are accruing thereunder. Viskase and its subsidiaries have defined contribution and defined benefit plansvarying by country and subsidiary. Viskase's operations in the United States, France, Germany and Canada have historically offered defined benefit retirementplans and post-retirement health care and life insurance benefits to their employees. Most of these benefits have been terminated, resulting in reductions in variousliabilities.206ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe following table provides disclosures for ARI's and Viskase's benefit obligations, plan assets, funded status, and recognition in the consolidated balancesheets. As pension costs for ARI and Viskase are not material to our consolidated financial position and results of operations, we do not provide informationregarding their inputs and valuation assumptions. Pension Benefits 2015 2014 (in millions)Change in benefit obligation: Benefit obligation, beginning of year$203 $176Service cost1 1Interest cost8 8Benefits paid(10) (10)Actuarial gain (loss)(9) 29Curtailment gain(1) —Currency translation(1) (1)Benefit obligation, end of year191 203Change in plan assets: Fair value of plan assets, beginning of year144 140Actual return on plan assets(3) 9Company contributions2 6Currency translation— (1)Benefits paid(10) (10)Fair value of plan assets, end of year133 144Funded status of the plan$(58) $(59)Amounts recognized in the consolidated balance sheets: Net liability recognized$(58) $(59)Amounts recognized in accumulated other comprehensive loss, inclusive of tax impacts: Net actuarial (loss) gain$(58) $(59)Total$(58) $(59)207ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS12 .Net Income Per LP Unit .The following table sets forth the allocation of net (loss) income attributable to Icahn Enterprises allocable to limited partners and the computation of basicand diluted (loss) income per LP unit of Icahn Enterprises for the periods indicated: Year Ended December 31, 2015 2014 2013 (in millions, except per unit data)Net (loss) income attributable to Icahn Enterprises$(1,194) $(373) $1,025Net (loss) income attributable to Icahn Enterprises allocable to limited partners (98.01%allocation)$(1,170) $(366) $1,005 Basic (loss) income per LP unit$(9.29) $(3.08) $9.14Basic weighted average LP units outstanding126 119 110 Dilutive effect of variable rate convertible notes: Income $2 Units 1 Diluted (loss) income per LP unit$(9.29) $(3.08) $9.07Diluted weighted average LP units outstanding126 119 111Unit DistributionsDuring 2015, we declared four quarterly distributions aggregating $6.00 per depositary unit. Depositary unitholders were given the option to make anelection 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 toreceive the distributions in cash.As a result of the above declared distributions, during 2015 we distributed an aggregate 8,337,645 of Icahn Enterprises' depositary units to those Depositaryunitholders who elected to receive such distributions in additional depositary units.Mr. Icahn and his affiliates elected to receive a majority of their proportionate share of these distributions in depositary units. As of December 31, 2015 , Mr.Icahn and his affiliates owned approximately 89.0% of Icahn Enterprises outstanding depositary units.Equity OfferingsOn February 28, 2013, Icahn Enterprises entered into an underwriting agreement (the “February 2013 Underwriting Agreement”) with Jefferies & Company,Inc., providing for the issuance and purchase of an aggregate of 3,174,604 depositary units representing limited partner interests in Icahn Enterprises at a price tothe public of $63.00 per depositary unit. The depositary units were delivered to the unitholders on March 6, 2013. Pursuant to the February 2013 UnderwritingAgreement, Icahn Enterprises also granted Jefferies & Company, Inc. a 30 -day option to purchase up to 476,191 additional depositary units at the same publicoffering price, which expired unexercised.On June 12, 2013, Icahn Enterprises entered into an underwriting agreement (the “June 2013 Underwriting Agreement”) with Credit Suisse Securities (USA)LLC, UBS Securities LLC, Jefferies LLC, Citigroup Global Markets Inc., Oppenheimer & Co. Inc., Keefe, Bruyette & Woods, Inc., Wunderlich Securities, Inc.and KeyBanc Capital Markets Inc. (the “Underwriters”), providing for the issuance and purchase of an aggregate of 1,600,000 depositary units representing limitedpartner interests in Icahn Enterprises at a price to the public of $75.54 per depositary unit. The depositary units were delivered to the unitholders on June 17, 2013.Pursuant to the June 2013 Underwriting Agreement, Icahn Enterprises also granted the Underwriters a 30-day option to purchase up to an additional aggregate240,000 additional depositary units at the same public offering price, which expired unexercised.On December 9, 2013, Icahn Enterprises entered into an underwriting agreement (the “December 2013 Underwriting Agreement”) with Morgan Stanley &Co. LLC ("Morgan Stanley"), providing for the issuance and purchase of an aggregate of208ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS2,000,000 depositary units representing limited partner interests in Icahn Enterprises at a price to the public of $135.00 per depositary unit. The depositary unitswere delivered to the unitholders on December 13, 2013. Pursuant to the December 2013 Underwriting Agreement, Icahn Enterprises also granted Morgan Stanleya 30-day option to purchase up to an additional aggregate 300,000 additional depositary units at the same public offering price, which expired unexercised.Aggregate net proceeds from these equity offerings was $581 million during the year ended December 31, 2013 after deducting underwriting discounts,commissions and other offering related fees and expenses. Additionally, in connection with these equity offerings, our general partner made aggregatecontributions of $12 million to Icahn Enterprises and Icahn Enterprises Holdings during the year ended December 31, 2013 in order to maintain its 1% generalpartner interest in each of Icahn Enterprises and Icahn Enterprises Holdings.The issuance and sale of the depositary units in connection with the equity offerings in February 2013 and June 2013 are registered under the Securities Actof 1933, as amended, pursuant to a shelf registration statement on Form S-3 (File No. 333-158705) filed with the SEC by Icahn Enterprises on April 22, 2009 anddeclared effective by the SEC on May 17, 2010. The issuance and sale of the depositary units in connection with the equity offering in December 2013 areregistered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3 (File No. 333-188360) filed with the SEC by IcahnEnterprises on May 3, 2013 and declared effective by the SEC on October 9, 2013.13 .Segment and Geographic Reporting .We are a diversified holding company owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Automotive,Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate and Home Fashion. We also report the results of our Holding Company, which includes theresults of certain subsidiaries of Icahn Enterprises and Icahn Enterprises Holdings, and investment activity and expenses associated with the Holding Company.Our determination of what constitutes an operating segment is based on the various industries in which our businesses operate and how we manage thosebusinesses in accordance with our investment strategy. We assess and measure segment operating results based on net income from continuing operationsattributable to Icahn Enterprises and Icahn Enterprises Holdings, as disclosed below. Certain terms of financings for certain of our segments impose restrictions onthe segments' ability to transfer funds to us, including restrictions on dividends, distributions, loans and other transactions. See Note 3 , “ Operating Units ,” for adetailed description of each of our reporting segments.Icahn Enterprises' condensed statements of operations by reporting segment for the years ended December 31, 2015 , 2014 and 2013 are presented below:209ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2015 Investment Automotive Energy Metals Railcar Gaming Mining (1) FoodPackaging Real Estate HomeFashion HoldingCompany Consolidated (in millions)Revenues: Net sales$— $7,789 $5,433 $361 $440 $— $30 $344 $14 $193 $— $14,604Other revenues from operations— — — — 499 811 — — 76 — — 1,386Net (loss) gain from investment activities(1,041) — 36 — — — — — — — 18 (987)Interest and dividend income178 6 2 — 2 1 1 — — — 4 194Other (loss) income, net(2) 58 (29) 4 7 (1) (3) (7) 41 1 6 75 (865) 7,853 5,442 365 948 811 28 337 131 194 28 15,272Expenses: Cost of goods sold— 6,577 4,949 406 338 — 38 263 7 163 — 12,741Other expenses from operations— — — — 201 396 — — 46 — — 643Selling, general and administrative237 1,001 127 20 45 338 12 50 13 34 31 1,908Restructuring— 89 — 2 — — — 5 — 1 — 97Impairment— 344 253 20 — — 169 — 2 — — 788Interest expense563 144 47 — 82 12 3 12 2 — 289 1,154 800 8,155 5,376 448 666 746 222 330 70 198 320 17,331(Loss) income before income tax benefit(expense) benefit(1,665) (302) 66 (83) 282 65 (194) 7 61 (4) (292) (2,059)Income tax (expense) benefit— (50) (59) 32 (69) (27) (1) (10) — — 116 (68)Net (loss) income(1,665) (352) 7 (51) 213 38 (195) (3) 61 (4) (176) (2,127)Less: net loss (income) attributable to non-controlling interests905 53 18 — (76) (12) 45 — — — — 933Net (loss) income attributable to IcahnEnterprises$(760) $(299) $25 $(51) $137 $26 $(150) $(3) $61 $(4) $(176) $(1,194) Supplemental information: Capital expenditures$— $449 $219 $24 $522 $94 $20 $22 $3 $6 $— $1,359Depreciation and amortization (2)$— $346 $229 $29 $127 $63 $8 $19 $21 $7 $— $849 Year Ended December 31, 2014 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate HomeFashion HoldingCompany Consolidated (in millions)Revenues: Net sales$— $7,317 $9,109 $711 $379 $— $365 $15 $176 $— $18,072Other revenues from operations— — — — 411 759 — 80 — — 1,250Net gain (loss) from investment activities(421) — (6) — — — — — — (137) (564)Interest and dividend income202 5 3 — 3 2 — — — 2 217Other income (loss), net1 2 186 — 16 88 (19) 6 5 (103) 182 (218) 7,324 9,292 711 809 849 346 101 181 (238) 19,157Expenses: Cost of goods sold— 6,260 8,774 728 288 — 275 8 152 — 16,485Other expenses from operations— — — — 175 387 — 51 — — 613Selling, general and administrative167 825 136 23 42 327 45 12 29 19 1,625Restructuring— 86 — — — — — — (2) — 84Impairment— 24 103 3 — — — 5 — — 135Interest expense299 128 38 — 60 13 14 3 — 292 847 466 7,323 9,051 754 565 727 334 79 179 311 19,789Income (loss) before income tax benefit(expense)(684) 1 241 (43) 244 122 12 22 2 (549) (632)Income tax benefit (expense)— (91) (73) 18 (56) 147 (3) — — 161 103Net income (loss)(684) (90) 168 (25) 188 269 9 22 2 (388) (529)Less: net income attributable to non-controllinginterests379 3 (73) — (66) (84) (3) — — — 156Net income (loss) attributable to IcahnEnterprises$(305) $(87) $95 $(25) $122 $185 $6 $22 $2 $(388) $(373) Supplemental information: Capital expenditures$— $418 $218 $41 $626 $81 $23 $1 $3 $— $1,411Depreciation and amortization (2)$— $336 $219 $26 $106 $50 $22 $22 $7 $— $788210ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2013 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate HomeFashion HoldingCompany Consolidated (in millions)Revenues: Net sales$— $6,905 $8,986 $929 $408 $— $371 $2 $184 $— $17,785Other revenues from operations— — — — 331 575 — 82 — — 988Net gain from investment activities1,850 — — — 2 — — — — (158) 1,694Interest and dividend income178 3 1 — 9 1 — — — 2 194Other (loss) income, net3 (32) 76 — (6) (5) (25) 1 3 6 21 2,031 6,876 9,063 929 744 571 346 85 187 (150) 20,682Expenses: Cost of goods sold— 5,885 8,204 948 326 — 285 — 161 — 15,809Other expenses from operations— — — — 160 294 — 50 — — 504Selling, general and administrative119 749 137 27 39 238 47 12 31 18 1,417Restructuring— 40 — — — — — — 10 — 50Impairment— 8 — 2 — 3 — 2 1 — 16Interest expense10 111 48 — 49 14 22 4 — 302 560 129 6,793 8,389 977 574 549 354 68 203 320 18,356Income (loss) before income tax benefit (expense)1,902 83 674 (48) 170 22 (8) 17 (16) (470) 2,326Income tax benefit (expense)— 180 (195) 20 (31) (3) 51 — — 96 118Net income (loss)1,902 263 479 (28) 139 19 43 17 (16) (374) 2,444Less: net (income) loss attributable to non-controllinginterests(1,090) (13) (190) — (109) (6) (11) — — — (1,419)Net income (loss) attributable to Icahn Enterprises$812 $250 $289 $(28) $30 $13 $32 $17 $(16) $(374) $1,025 Supplemental information: Capital expenditures$— $380 $256 $15 $424 $57 $20 $2 $7 $— $1,161Depreciation and amortization (2)$— $296 $208 $26 $92 $34 $21 $23 $8 $— $708(1) We consolidated Ferrous Resources effective June 1, 2015.(2) Excludes amounts related to the amortization of deferred financing costs and debt discounts and premiums included in interest expense in the consolidated amounts of $14 million , $22million and $34 million for the years ended December 31, 2015 , 2014 and 2013, respectively.211ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSIcahn Enterprises' condensed balance sheets by reporting segment as of December 31, 2015 and 2014 are presented below: December 31, 2015 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging RealEstate HomeFashion HoldingCompany Consolidated (in millions)ASSETS Cash and cash equivalents$10 $201 $765 $12 $623 $217 $14 $37 $19 $14 $166 $2,078Cash held at consolidated affiliated partnershipsand restricted cash1,199 — — 4 53 14 — 1 2 6 3 1,282Investments14,553 296 — — 27 26 — — — — 449 15,351Accounts receivable, net— 1,418 96 26 36 9 4 60 2 34 — 1,685Inventories, net— 1,656 290 39 97 — 32 77 — 68 — 2,259Property, plant and equipment, net— 2,386 2,698 116 2,767 740 134 152 467 72 3 9,535Goodwill and intangible assets, net— 1,556 911 5 7 74 — 8 48 3 — 2,612Other assets378 440 134 13 84 204 19 84 163 9 112 1,640 Total assets$16,140 $7,953 $4,894 $215 $3,694 $1,284 $203 $419 $701 $206 $733 $36,442LIABILITIES AND EQUITY Accounts payable, accrued expenses and otherliabilities$488 $2,061 $1,366 $30 $299 $118 $30 $62 $17 $30 $(60) $4,441Securities sold, not yet purchased, at fair value794 — — — — — — — — — — 794Due to brokers7,317 — — — — — — — — — — 7,317Post-employment benefit liability— 1,163 — 2 8 — — 51 — — — 1,224Debt— 3,145 673 1 2,684 292 50 270 28 — 5,490 12,633 Total liabilities8,599 6,369 2,039 33 2,991 410 80 383 45 30 5,430 26,409 Equity attributable to Icahn Enterprises3,428 1,270 1,508 182 742 604 95 23 656 176 (4,697) 3,987Equity attributable to non-controlling interests4,113 314 1,347 — (39) 270 28 13 — — — 6,046 Total equity7,541 1,584 2,855 182 703 874 123 36 656 176 (4,697) 10,033 Total liabilities and equity$16,140 $7,953 $4,894 $215 $3,694 $1,284 $203 $419 $701 $206 $733 $36,442 December 31, 2014 Investment Automotive Energy Metals Railcar Gaming Food Packaging RealEstate HomeFashion HoldingCompany Consolidated (in millions)ASSETS Cash and cash equivalents$2 $332 $754 $19 $408 $196 $39 $24 $11 $1,123 $2,908Cash held at consolidated affiliated partnerships and restrictedcash1,366 — — 4 39 16 1 2 8 3 1,439Investments13,941 269 77 — 29 33 — — — 131 14,480Accounts receivable, net— 1,356 137 51 41 9 63 4 30 — 1,691Inventories, net— 1,215 330 67 117 — 77 — 73 — 1,879Property, plant and equipment, net— 2,160 2,692 144 2,376 719 154 490 74 3 8,812Goodwill and intangible assets, net— 1,744 1,184 8 7 75 9 58 3 — 3,088Other assets161 453 160 22 103 212 93 167 9 113 1,493 Total assets$15,470 $7,529 $5,334 $315 $3,120 $1,260 $436 $745 $208 $1,373 $35,790LIABILITIES AND EQUITY Accounts payable, accrued expenses and other liabilities$877 $1,933 $1,471 $60 $294 $130 $64 $20 $28 $13 $4,890Securities sold, not yet purchased, at fair value334 — — — — — — — — — 334Due to brokers5,197 — — — — — — — — — 5,197Post-employment benefit liability— 1,328 — 2 9 — 52 — — — 1,391Debt— 2,690 675 3 2,133 295 274 32 — 5,486 11,588 Total liabilities6,408 5,951 2,146 65 2,436 425 390 52 28 5,499 23,400 Equity attributable to Icahn Enterprises4,284 1,231 1,612 250 711 578 30 693 180 (4,126) 5,443Equity attributable to non-controlling interests4,778 347 1,576 — (27) 257 16 — — — 6,947 Total equity9,062 1,578 3,188 250 684 835 46 693 180 (4,126) 12,390 Total liabilities and equity$15,470 $7,529 $5,334 $315 $3,120 $1,260 $436 $745 $208 $1,373 $35,790212ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe following table presents our segments' geographic net sales from external customers, other revenues from operations and property, plant and equipment,net for the periods indicated: Net Sales Other Revenues From Operations Property, Plant andEquipment, Net Year Ended December 31, Year Ended December 31, December 31, 2015 2014 2013 2015 2014 2013 2015 2014 (in millions)United States$9,672 $13,086 $13,171 $1,304 $1,169 $937 $7,221 $6,760Germany1,480 1,507 1,339 — — — 464 423Other3,452 3,479 3,275 82 81 51 1,850 1,629 $14,604 $18,072 $17,785 $1,386 $1,250 $988 $9,535 $8,812Geographic locations for net sales and other revenues from operations are based on locations of the customers and geographic locations for property, plant,and equipment are based on the locations of the assets.Icahn Enterprises HoldingsDue to the structure of our business, the consolidated results of operations for Icahn Enterprises and Icahn Enterprises Holdings are substantially the same.Differences primarily relate to non-cash portions of interest expense, and are only reflected in the results of operations for our Holding Company. See Note 10 , "Debt ," for additional information. Segment information for Icahn Enterprises Holdings is presented below for significant financial statement line items affected bythese differences. Year Ended December 31, December 31, 2015 2014 2013 2015 2014 InterestExpense Net (Loss)Income Net (Loss) IncomeAttributable toIcahn EnterprisesHoldings InterestExpense Net (Loss)Income Net (Loss) IncomeAttributable toIcahn EnterprisesHoldings InterestExpense Net Income(Loss) Net Income (Loss)Attributable toIcahn EnterprisesHoldings TotalAssets TotalAssets (in millions) (in millions)Investment$563 $(1,665) $(760) $299 $(684) $(305) $10 $1,902 $812 $16,140 $15,470Automotive144 (352) (299) 128 (90) (87) 111 263 250 7,953 7,529Energy47 7 25 38 168 95 48 479 289 4,894 5,334Metals— (51) (51) — (25) (25) — (28) (28) 215 315Railcar82 213 137 60 188 122 49 139 30 3,694 3,120Gaming12 38 26 13 269 185 14 19 13 1,284 1,260Mining (1)3 (195) (150) — — — — — — 203 —Food Packaging12 (3) (3) 14 9 6 22 43 32 419 436Real Estate2 61 61 3 22 22 4 17 17 701 745Home Fashion— (4) (4) — 2 2 — (16) (16) 206 208Holding Company288 (175) (175) 291 (387) (387) 302 (374) (374) 757 1,396Consolidated$1,153 $(2,126) $(1,193) $846 $(528) $(372) $560 $2,444 $1,025 $36,466 $35,813(1) We consolidated Ferrous Resources effective June 1, 2015.Amounts related to the amortization of deferred financing costs and debt discounts and premiums included in interest expense for the consolidated results ofIcahn Enterprises Holdings were $13 million , $21 million and $34 million for the years ended December 31, 2015 , 2014 and 2013, respectively.213ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS14 .Income Taxes .The difference between the book basis and the tax basis of our net assets, not directly subject to income taxes, is as follows: Icahn Enterprises Icahn Enterprises Holdings December 31, December 31, 2015 2014 2015 2014 (in millions) (in millions)Book basis of net assets$3,987 $5,443 $4,011 $5,446Book/tax basis difference(88) (1,566) (88) (1,545)Tax basis of net assets$3,899 $3,877 $3,923 $3,901Our corporate subsidiaries recorded the following income tax benefit (expense) attributable to continuing operations for our taxable subsidiaries: Year Ended December 31, 2015 2014 2013 (in millions)Current: Domestic$(17) $(45) $22International(55) (35) (61)Total current(72) (80) (39)Deferred: Domestic(15) 201 146International19 (18) 11Total deferred4 183 157 $(68) $103 $118214ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe tax effect of significant differences representing deferred tax assets (liabilities) (the difference between financial statement carrying value and the taxbasis of assets and liabilities) is as follows: December 31, 2015 2014 (in millions)Deferred tax assets: Property, plant and equipment$341 $144Net operating loss1,511 1,348Tax credits133 149Post-employment benefits, including pensions347 388Reorganization costs5 11Other418 231Total deferred tax assets2,755 2,271Less: Valuation allowance(1,444) (1,059)Net deferred tax assets$1,311 $1,212 Deferred tax liabilities: Property, plant and equipment$(354) $(239)Intangible assets(163) (177)Investment in partnerships(1,376) (1,349)Investment in U.S. subsidiaries(307) (307)Other(13) (6)Total deferred tax liabilities(2,213) (2,078) $(902) $(866) We recorded deferred tax assets and deferred tax liabilities of $295 million and $1,197 million , respectively, as of December 31, 2015 and $389 million and$1,255 million , respectively, as of December 31, 2014. Deferred tax assets are included in other assets in our consolidated balance sheets.We analyze all positive and negative evidence to consider whether it is more likely than not that all of the deferred tax assets will be realized. Projectedfuture income, tax planning strategies and the expected reversal of deferred tax liabilities are considered in making this assessment. As of December 31, 2015 wehad a valuation allowance of approximately $1.4 billion primarily related to tax loss and credit carryforwards, post-retirement benefits and other deferred taxassets. The current and future provisions for income taxes may be significantly impacted by changes to valuation allowances. These allowances will bemaintained until it is more likely than not that the deferred tax assets will be realized. For the year ended December 31, 2015 , the valuation allowance on deferredtax assets increased by $385 million . The increase was attributable to $394 million increase from the acquisition of Ferrous Resources, representing our Miningsegment, and a $7 million increase recorded by American Entertainment Properties (“AEPC”), an indirect wholly owned subsidiary of ours, offset by a decrease of$16 million recorded by our Automotive segment. For the year ended December 31, 2014, the valuation allowance on deferred tax assets decreased by $157million . The decrease was attributable to $193 million decrease recorded by our Gaming segment offset by an increase of $33 million and $3 million recorded byour Automotive segment and AEPC, respectively.215ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSA reconciliation of the effective tax rate on continuing operations as shown in the consolidated statements of operations to the federal statutory rate is asfollows: Year Ended December 31, 2015 2014 2013Federal statutory rate35.0 % 35.0 % 35.0 %Foreign operations1.4 6.7 1.3Valuation allowance(5.5) 21.5 (15.4)Non-controlling interest2.0 7.5 (2.3)Goodwill(9.5) (5.7) 0.2Gain on settlement of liabilities subject to compromise0.2 4.9 —Income not subject to taxation(25.4) (47.2) (25.4)Other(1.5) (6.4) 1.5 (3.3)% 16.3 % (5.1)%AutomotiveFederal-Mogul did not record taxes on its undistributed earnings from foreign subsidiaries of $879 million at December 31, 2015 since these earnings areconsidered to be permanently reinvested. If at some future date, these earnings cease to be permanently reinvested, Federal-Mogul may be subject to U.S. incometaxes and foreign withholding taxes on such amounts. Determining the unrecognized deferred tax liability on the potential distribution of these earnings is notpracticable as such liability, if any, is dependent on circumstances existing when remittance occurs.As of December 31, 2015 , Federal-Mogul had $194 million of cash and cash equivalents, of which $95 million was held by foreign subsidiaries. Inaccordance with FASB ASC 740-30-25-17 through 19, Federal-Mogul asserts that these funds are indefinitely reinvested due to operational and investing needs ofthe foreign locations. Furthermore, Federal-Mogul will accrue any applicable taxes in the period when it no longer intends to indefinitely reinvest these funds.Federal-Mogul expects that the impact on cash taxes would be immaterial due to: the availability of net operation loss carryforwards and related valuationallowances; earnings considered previously taxed; and applicable tax treaties.Federal-Mogul continues to maintain a valuation allowance related to its net deferred tax assets in multiple jurisdictions. As of December 31, 2015 , ourAutomotive segment had valuation allowances of $801 million related to tax loss and credit carryforwards. The current and future provisions for income taxes maybe significantly impacted by changes to valuation allowances in certain countries. These allowances will be maintained until it is more likely than not that thedeferred tax assets will be realized. The future provision for income taxes will include no tax benefit with respect to losses incurred and no tax expense with respectto income generated in these countries until the respective valuation allowance is eliminated.At December 31, 2015 , our Automotive segment had a deferred tax asset before valuation allowance of $894 million for tax loss carryforwards and taxcredits, including approximately $495 million in the United States with expiration dates from fiscal 2016 through fiscal 2035 ; $132 million in the United Kingdomwith no expiration date; and $267 million in other jurisdictions with various expiration dates.During 2013, IEH FM Holdings LLC, the parent company of Federal-Mogul, was contributed to American Entertainment Properties Corp. ("AEPC") in a tax-free transaction. Pursuant to the contribution and additional shares purchased, AEPC owns more than 80% of Federal-Mogul and Federal-Mogul is now included inthe federal income tax consolidated group of AEPC. Positive and negative evidence was evaluated and AEPC was able to conclude that it was more likely than notto realize a portion of the Federal-Mogul deferred tax assets as part of the consolidated U.S. tax filing and released $18 million and $287 million of valuationallowance during the years ended December 31, 2014 and 2013, respectively. Our Automotive segment has also concluded that there is a more than remote possibility that existing valuation allowances of up to $157 million as ofDecember 31, 2015 could be released within the next 12 months. If releases of such valuation allowances occur, they may have a significant impact on ourconsolidated statements of operations in the quarter in which it is deemed appropriate to release the reserve.216ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSEnergyOn May 19, 2012, CVR became a member of the consolidated federal tax group of AEPC. At December 31, 2015 , CVR has Oklahoma state income taxcredits of approximately $26 million which are available to reduce future Oklahoma state regular income taxes. These credits have an indefinite life.Gaming, Home Fashion, Food Packaging and OtherAt December 31, 2015 , AEPC, which includes all or parts of our Automotive, Energy, Railcar, Metals, Home Fashion and Real Estate segments had $1.5billion of net operating loss carryforwards with expiration dates from years 2026 through 2035 . During 2012, WPH merged into a newly formed single memberlimited liability company owned by AEPC. The merger constituted a tax free reorganization. Due to separate company net operating loss limitations, AEPC couldnot determine that it was more likely than not to realize some of the state net operating loss carryforwards and the federal net operating loss carryforward fromother segments. The valuation allowance on these deferred tax assets is approximately $61 million as of December 31, 2015 .AEPC did not record taxes on its undistributed earnings from our Metals and Home Fashion segments' foreign subsidiaries of $17 million as of December 31,2015 since these earnings are considered to be permanently reinvested. AEPC may be subject to U.S. income taxes and foreign withholding taxes on suchamounts. Determining the unrecognized deferred tax liability on the potential distribution of these earnings is not practicable as such liability, if any, is dependenton circumstances existing when remittance occurs.At December 31, 2015 , Viskase had U.S. federal and state net operating loss carryforwards of $93 million which will begin expiring in the year 2024 andforward, and foreign net operating loss carryforwards of $16 million with an unlimited carryforward period. During the fourth quarter of 2013, Viskase'smanagement determined that it was more likely than not that all of the deferred tax assets would be fully realized based on the expectation of positive evidence andprojected income in future years. Accordingly, Viskase released all $55 million of its valuation allowance on deferred tax assets in 2013.Viskase did not record taxes on its undistributed earnings from foreign subsidiaries of $66 million at December 31, 2015 since these earnings are consideredto be permanently reinvested. Viskase may be subject to U.S. income taxes and foreign withholding taxes on such amounts. Determining the unrecognized deferredtax liability on the potential distribution of these earnings is not practicable as such liability, if any, is dependent on circumstances existing when remittance occurs.ARI considers its Canadian earnings to be permanently reinvested, and therefore has not recorded a provision for U.S. income tax or foreign withholdingtaxes on the cumulative earnings of its Canadian subsidiary. Such undistributed earnings of $3 million from ARI's Canadian subsidiary have been included inconsolidated equity as of both December 31, 2015 and 2014. If ARI were to change its intentions and such earnings were remitted to the U.S., these earnings wouldbe subject to U.S. income taxes. However, as of December 31, 2015 and 2014 foreign tax credits would be available to offset these taxes such that the U.S. taximpact would be insignificant.Our Gaming segment has federal NOL carryforwards pursuant to the purchase of Adamar of New Jersey, Inc. (“Adamar”). Internal Revenue Code Section382 (“Code 382”) places certain limitations on the annual amount of NOL carryforwards that can be utilized when a change of ownership occurs. Our Gamingsegment believes its purchase of Adamar was a change in ownership pursuant to Code 382. As a result of the annual limitation, the NOL carryforward amountavailable to be used in future periods is $156 million and will begin to expire in the year 2028 and forward. As of March 8, 2010, Tropicana had various netdeferred tax assets made up primarily of the expected future tax benefit of net operating loss carryforwards and excess tax basis not yet deductible for tax purposes.A valuation allowance was provided in full against these net deferred tax assets upon emergence from bankruptcy. During the year ended December 31, 2014, ourGaming segment reversed the valuation allowance related to the net deferred tax assets by $196 million . The reduction in the valuation allowance is a result of ourGaming segment analyzing all positive and negative evidence and concluding that it is more likely than not to realize the benefit of this portion of its net deferredtax assets. The reduction in the valuation allowance was recorded as an income tax benefit during the year ended December 31, 2014.217ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSAccounting for Uncertainty in Income Taxes A summary of the changes in the gross amounts of unrecognized tax benefits for the fiscal years ended December 31, 2015 , 2014 and 2013 are as follows: Years Ended December 31, 2015 2014 2013 (in millions)Balance at January 1$113 $132 $113Addition based on tax positions related to the current year19 18 23Increase for tax positions of prior years6 10 6Decrease for tax positions of prior years(10) (14) (9)Decrease for statute of limitation expiration(21) (3) (1)Settlements(8) (25) 1Impact of currency translation and other(5) (5) (1)Balance at December 31$94 $113 $132At December 31, 2015 , 2014 and 2013, we had unrecognized tax benefits of $94 million , $113 million and $132 million , respectively. Of these totals, $68million , $76 million and $54 million represents the amount of unrecognized tax benefits that if recognized, would affect the annual effective tax rate in therespective periods. The total unrecognized tax benefits differ from the amount which would affect the effective tax rate primarily due to the impact of valuationallowances.During the next 12 months, Federal-Mogul believes that it is reasonably possible that unrecognized tax benefits of Federal-Mogul may decrease byapproximately $2 million due to audit settlements or statute expirations, of which approximately $1 million , if recognized, could impact the effective tax rate. Wedo not anticipate any significant changes to the amount of our unrecognized tax benefits in our other business segments during the next 12 months.We recognize interest and penalties accrued related to unrecognized tax benefits as a component of income tax expense. We recorded $15 million , $19million and $27 million as of December 31, 2015 , 2014 and 2013, respectively, in liabilities for tax related net interest and penalties in our consolidated balancesheets. Income tax (benefit) expense related to interest and penalties were $(4) million , $(11) million and $8 million for the years December 31, 2015 , 2014 and2013, respectively. We or certain of our subsidiaries file income tax returns in the U.S. federal jurisdiction, various state jurisdictions and various non-U.S.jurisdictions. We and our subsidiaries are no longer subject to U.S. federal tax examinations for years before 2011 or state and local examinations for years before2008, with limited exceptions. We, or our subsidiaries, are currently under various income tax examinations in several states and foreign jurisdictions, but are nolonger subject to income tax examinations in major foreign jurisdictions for years prior to 2005.218ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS15 .Changes in Accumulated Other Comprehensive Loss .Changes in accumulated other comprehensive loss consists of the following: Post-EmploymentBenefits, Net of Tax Hedge Instruments,Net of Tax TranslationAdjustments andOther, Net of Tax Total (in millions)Balance at December 31, 2014$(692) $(26) $(575) $(1,293)Other comprehensive income (loss) before reclassifications,net of tax37 (4) (206) (173)Reclassifications from accumulated other comprehensive lossto earnings (1)23 5 (19) 9Other comprehensive income (loss), net of tax60 1 (225) (164)Balance at December 31, 2015$(632) $(25) $(800) $(1,457)(1) Refer to Note 11 , " Pension, Other Post-employment Benefits and Employee Benefit Plans ," and Note 7 , " Financial Instruments ," for additional information with respect toreclassifications from accumulated other comprehensive loss to earnings relating to post-employment benefits, net of tax and hedge instruments, net of tax, respectively. Such items do notrepresent reclassifications in their entirety.16 .Other Income, Net .Other income, net consists of the following: Year Ended December 31, 2015 2014 2013 (in millions)Loss on extinguishment of debt (Note 10)$(2) $(162) $—Gain on acquisition (Note 3)5 — —Realized and unrealized (loss) gain on derivatives, net (Note 7)(29) 186 57Tax settlement gain (loss)— 32 (23)Net gain (loss) on disposition of assets40 25 (56)Predecessor claim settlement— 53 —Equity earnings from non-consolidated affiliates62 50 26Foreign currency translation loss(10) (10) (12)Other9 8 29 $75 $182 $21In December 2014, our Gaming segment settled certain predecessor claims which resulted in a one-time gain of $53 million during 2014.The net gain on disposition of assets for 2014 primarily relates to net gains on the sale of fixed assets within various segments. The net loss on disposition ofassets for 2013 primarily relates to various divestitures by our Automotive segment. During the first quarter of 2013, our Automotive segment recorded a loss ondivestiture of $48 million related to the disposal of its sintered components operations located in France. During the second quarter of 2013, our Automotivesegment recorded a loss on divestiture of $6 million related to its connecting rod manufacturing facility located in Canada and its camshaft foundry located in theUnited Kingdom. During the third quarter of 2013, our Automotive segment recorded a loss on divestiture relating to its fuel pump business of $6 million , whichis net of a $19 million OPEB curtailment gain, as discussed further in Note 11 , " Pension, Other Post-employment Benefits and Employee Benefit Plans ."Because the financial results from the disposition of these businesses were not material, individually or in the aggregate, to our consolidated financial statements,we did not reflect the dispositions of these businesses as discontinued operations.219ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSDuring 2014, our Gaming segment recorded a gain of $32 million related to the settlement of a certain property tax matter in Atlantic City, New Jersey.During 2013, our Food Packaging segment recorded a loss of $23 million related to the settlement of a certain tax matter.17 .Commitments and Contingencies .AutomotiveEnvironmental MattersFederal-Mogul is a defendant in lawsuits filed, or the recipient of administrative orders issued or demand letters received, in various jurisdictions pursuant tothe Federal Comprehensive Environmental Response Compensation and Liability Act of 1980 (“CERCLA”) or other similar national, provincial or stateenvironmental remedial laws. These laws provide that responsible parties may be liable to pay for remediating contamination resulting from hazardous substancesthat were discharged into the environment by them, by prior owners or occupants of property they currently own or operate, or by others to whom they sent suchsubstances for treatment or other disposition at third party locations. Federal-Mogul has been notified by the United States Environmental Protection Agency, othernational environmental agencies, and various provincial and state agencies that it may be a potentially responsible party (“PRP”) under such laws for the cost ofremediating hazardous substances pursuant to CERCLA and other national and state or provincial environmental laws. PRP designation often results in the fundingof site investigations and subsequent remedial activities.Many of the sites that are likely to be the costliest to remediate are often current or former commercial waste disposal facilities to which numerous companiessent wastes. Despite the potential joint and several liability which might be imposed on Federal-Mogul under CERCLA and some of the other laws pertaining tothese sites, its share of the total waste sent to these sites has generally been small. Federal-Mogul believes its exposure for liability at these sites is limited.Federal-Mogul has also identified certain other present and former properties at which it may be responsible for cleaning up or addressing environmentalcontamination, in some cases as a result of contractual commitments and/or federal or state environmental laws. Federal-Mogul is actively seeking to resolve theseactual and potential statutory, regulatory and contractual obligations. Although difficult to quantify based on the complexity of the issues, Federal-Mogul hasaccrued amounts corresponding to its best estimate of the costs associated with such regulatory and contractual obligations on the basis of available informationfrom site investigations and best professional judgment of consultants.Total environmental liabilities, determined on an undiscounted basis, were $14 million and $15 million at December 31, 2015 and 2014, respectively, and areincluded in accrued expenses and other liabilities in our consolidated balance sheets.Federal-Mogul believes that recorded environmental liabilities will be adequate to cover its estimated liability for its exposure in respect to such matters. Inthe event that such liabilities were to significantly exceed the amounts recorded by Federal-Mogul, our Automotive segment's results of operations could bematerially affected. At December 31, 2015 , Federal-Mogul estimates reasonably possible material additional losses, above and beyond its best estimate of requiredremediation costs as recorded, to approximate $44 million .Asset Retirement ObligationsFederal-Mogul has identified sites with contractual obligations and several sites that are closed or expected to be closed and sold. In connection with thesesites, Federal-Mogul has accrued $16 million and $24 million at December 31, 2015 and 2014, respectively, for ARO's, primarily related to anticipated costs ofremoving hazardous building materials at its facilities, and has considered impairment issues that may result from capitalization of these ARO amounts.Federal-Mogul has conditional asset retirement obligations ("CARO"), primarily related to removal costs of hazardous materials in buildings, for which itbelieves reasonable cost estimates cannot be made at this time because it does not believe it has a reasonable basis to assign probabilities to a range of potentialsettlement dates for these retirement obligations. Accordingly, Federal-Mogul is currently unable to determine amounts to accrue for CARO at such sites.Other MatterOn April 25, 2014, a group of plaintiffs brought an action against Federal-Mogul Products, Inc. (“F-M Products”), a wholly-owned subsidiary of Federal-Mogul, alleging injuries and damages associated with the discharge of chlorinated hydrocarbons by the former owner of a facility located in Kentucky. Since1998, when F-M Products acquired the facility, it has been cooperating with the applicable regulatory agencies on remediating the prior discharges pursuant to anorder entered220ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSinto by the facility’s former owner. Federal-Mogul is unable to estimate any reasonably possible range of loss for reasons including that the plaintiffs did not claimany amount of damages in their complaint. F-M Products intends to vigorously defend this litigation.EnergyUnconditional Purchase ObligationsThe minimum required payments for CVR's unconditional purchase obligations are as follows: UnconditionalPurchase Obligations(1) (in millions)2016$1412017126201812420191242020108Thereafter727 $1,350(1) This amount includes $782 million payable ratably over 15 years pursuant to petroleum transportation service agreements between CRRM and each of TransCanada Keystone LimitedPartnership and TransCanada Keystone Pipeline, LP (together, "TransCanada"). The purchase obligation reflects the exchange rate between the Canadian dollar and the U.S. dollar as ofDecember 31, 2015 , where applicable. Under the agreements, CRRM receives transportation of at least 25,000 barrels per day of crude oil with a delivery point at Cushing, Oklahoma for aterm of 20 years on TransCanada's Keystone pipeline system. CRRM began receiving crude oil under the agreements in the first quarter of 2011.Unconditional Purchase ObligationsCVR leases various equipment, including rail cars and real properties under long-term operating leases expiring at various dates. For each of the years endedDecember 31, 2015, 2014 and 2013, total lease expense was $9 million . The lease agreements have various remaining terms. Some agreements are renewable, atCVR's option, for additional periods. It is expected, in the ordinary course of business, that leases will be renewed or replaced as they expire. Additionally, in thenormal course of business, CVR has long-term commitments to purchase oxygen, nitrogen, electricity, storage capacity and pipeline transportation services.Crude Oil Supply AgreementOn August 31, 2012, CRRM and Vitol Inc. ("Vitol"), entered into an Amended and Restated Crude Oil Supply Agreement (as amended, the "VitolAgreement"). Under the Vitol Agreement, Vitol supplies the petroleum business with crude oil and intermediation logistics, which helps to reduce CVR Refining'sinventory position and mitigate crude oil pricing risk. The Vitol Agreement will automatically renew for successive one -year terms (each such term, a "RenewalTerm") unless either party provides the other with notice of nonrenewal at least 180 days prior to expiration of any Renewal Term. The Vitol Agreement currentlyextends through December 31, 2016.LitigationFrom time to time, CVR is involved in various lawsuits arising in the normal course of business, including matters such as those described below under,"Environmental, Health and Safety Matters." Liabilities related to such litigation are recognized when the related costs are probable and can be reasonablyestimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel andother information and events pertaining to a particular case. It is possible that CVR's management estimates of the outcomes will change within the next year dueto uncertainties inherent in litigation and settlement negotiations. In the opinion of CVR management, the ultimate resolution of any other litigation matters is notexpected to have a material adverse effect on the accompanying consolidated financial statements. There can be no assurance that CVR management's beliefs oropinions with respect to liability for potential litigation matters will prove to be accurate.221ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSOn June 21, 2012, Goldman, Sachs & Co. ("GS") filed suit against CVR in state court in New York, alleging that CVR failed to pay GS fees allegedly due toGS by CVR pursuant to an engagement letter dated March 21, 2012, which according to the allegations set forth in the complaint, provided that GS was engagedby CVR to assist CVR and the CVR board of directors in connection with a tender offer for CVR's stock, made by Carl C. Icahn and certain of his affiliates. OnSeptember 8, 2014, the court (in its decision granting GS's motion for summary judgment against CVR) directed the court clerk to enter judgment against CVR inthe amount of approximately $22.6 million . CVR filed its notice of appeal on October 3, 2014. On November 24, 2014, CVR paid the judgment to GS, subject to aright of refund if it is successful on appeal. In October 2015, CVR entered into a settlement agreement with GS pursuant to which (i) CVR received settlementproceeds, (ii) the parties executed a mutual release and (iii) CVR’s appeal has been dismissed. The settlement did not have a material effect on our consolidatedfinancial statements.On August 10, 2012, Deutsche Bank ("DB") filed suit against CVR in state court in New York, alleging that CVR failed to pay DB fees allegedly due to DBby CVR pursuant to an engagement letter dated March 23, 2012, which according to the allegations set forth in the complaint, provided that DB was engaged byCVR to assist CVR and the CVR board of directors in connection with a tender offer for CVR's stock made by Carl C. Icahn and certain of his affiliates. OnSeptember 8, 2014, the court (in its decision granting DB's motion for summary judgment against CVR) directed the court clerk to enter judgment against CVR inthe amount of approximately $22.7 million . CVR filed its notice of appeal on October 3, 2014. In October 2015, CVR entered into a settlement agreement withDB pursuant to which (i) CVR received settlement proceeds, (ii) the parties executed a mutual release and (iii) CVR’s appeal has been dismissed. The settlementdid not have a material effect on our consolidated financial statements.On August 29, 2015, Mike Mustard, a purported unitholder of Rentech Nitrogen, filed a class action complaint on behalf of the public unitholders of RentechNitrogen against Rentech Nitrogen, Rentech Nitrogen GP, Rentech Nitrogen Holdings, Inc., Rentech, Inc., CVR Partners, DSHC, LLC, Merger Sub 1 and MergerSub 2, and the members of the board of directors of Rentech Nitrogen GP (the "Rentech Nitrogen Board"), in the Court of Chancery of the State of Delaware (the"Mustard Lawsuit"). The Mustard Lawsuit alleges, among other things, that the consideration offered by CVR Partners is unfair and inadequate and that, bypursuing a transaction that is the result of an allegedly conflicted and unfair process, certain of the defendants have breached their duties owed to the unitholders ofRentech Nitrogen, and are engaging in self-dealing. Specifically, the lawsuit alleges that the director defendants: (i) failed to take steps to maximize the value ofRentech Nitrogen to its public shareholders, (ii) failed to properly value Rentech Nitrogen, and (iii) ignored or did not protect against the numerous conflicts ofinterest arising out of the proposed transaction. The Mustard Lawsuit also alleges that Rentech Nitrogen, Rentech Nitrogen GP, Rentech Nitrogen Holdings, Inc.,Rentech, Inc., CVR Partners, DSHC, LLC, Merger Sub 1 and Merger Sub 2 aided and abetted the director defendants in their purported breach of fiduciary duties.On October 6, 2015, Jesse Sloan, a purported unitholder of Rentech Nitrogen, filed a class action complaint on behalf of the public unitholders of RentechNitrogen against Rentech Nitrogen, Rentech Nitrogen GP, CVR Partners, Merger Sub 1 and Merger Sub 2, and the members of the Rentech Nitrogen Board, in theUnited States District Court for the Central District of California (the "Sloan Lawsuit"). The Sloan Lawsuit alleges, among other things, that the attempted sale ofRentech Nitrogen to CVR Partners was conducted by means of an unfair process and for an unfair price. Specifically, the lawsuit alleges that (i) Rentech NitrogenGP and the Rentech Nitrogen Board breached their obligations under the partnership agreement and their implied duty of good faith and fair dealing by causingRentech Nitrogen to enter into the CVR Partners Merger Agreement and failing to disclose material information to unitholders of Rentech Nitrogen, (ii) theRentech Nitrogen Board violated fiduciary duties owed to the unitholders of Rentech Nitrogen based primarily on allegations of inadequate consideration,restrictive deal protection devices and improper disclosure, (iii) each of the defendants aided and abetted in the foregoing breaches described in items (i) and (ii),and (iv) Rentech Nitrogen and the Rentech Nitrogen Board violated Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and Rule 14a-9 thereunderbased on improper disclosure contained in the Registration Statement on Form S-4 (Registration No. 333-206982), which was originally filed with the SEC byCVR Partners on September 17, 2015.Among other remedies, the plaintiffs in these actions seek to enjoin the CVR Partners Mergers and seek unspecified money damages. The lawsuits are at apreliminary state, and the outcome of any such litigation is uncertain. An adverse ruling in these actions may cause the CVR Partners Mergers to be delayed or notbe completed, which could cause the Nitrogen Fertilizer Partnership not to realize some or all of the anticipated benefits of the CVR Partners Mergers. No amountshave been recognized in these consolidated financial statements regarding the lawsuits.On February 1, 2016, the parties to the Mustard Lawsuit and the Sloan Lawsuit entered into a memorandum of understanding (“MOU”) providing for theproposed settlement of the lawsuits. While the defendants believe that no222ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSsupplemental disclosure is required under applicable laws, in order to avoid the burden and expense of further litigation, they have agreed, pursuant to the terms ofthe MOU, to make certain supplemental disclosures related to the proposed mergers. The MOU contemplates that the parties will enter into a stipulation ofsettlement. The stipulation of settlement will be subject to customary conditions, including court approval following notice to Rentech Nitrogen’s unitholders. Inthe event that the parties enter into a stipulation of settlement, a hearing will be scheduled at which the United States District Court for the Central District ofCalifornia (the “Court”) will consider the fairness, reasonableness and adequacy of the proposed settlement. If the proposed settlement is finally approved by theCourt, it will resolve and release all claims by unitholders of Rentech Nitrogen challenging any aspect of the proposed mergers, the CVR Partners MergerAgreement and any disclosure made in connection therewith, including in the prospectus and definitive proxy statement, pursuant to terms that will be disclosed tosuch unitholders prior to final approval of the proposed settlement. In addition, in connection with the proposed settlement, the parties contemplate that plaintiffs’counsel will file a petition in the Court for an award of attorneys’ fees and expenses to be paid by Rentech Nitrogen or its successor. The proposed settlement isalso contingent upon, among other things, the CVR Partners Mergers becoming effective under Delaware law. There can be no assurance that the Court willapprove the proposed settlement contemplated by the MOU. In the event that the proposed settlement is not approved and such conditions are not satisfied, thedefendants will continue to vigorously defend against the allegations in the lawsuits.CRNF received a ten year property tax abatement from Montgomery County, Kansas (the "County") in connection with the construction of the nitrogenfertilizer plant that expired on December 31, 2007. In connection with the expiration of the abatement, the County reclassified and reassessed CRNF's nitrogenfertilizer plant for property tax purposes. The reclassification and reassessment resulted in an increase in CRNF's annual property tax expense by an average of $11million per year for each of the years ended December 31, 2008 and 2009, $12 million for the year ended December 31, 2010 and $11 million for each of the yearsended December 31, 2011 and 2012. CRNF protested the classification and resulting valuation for each of those years to the Kansas Board of Tax Appeals("BOTA"), followed by an appeal to the Kansas Court of Appeals. However, CRNF fully accrued and paid the property taxes the county claims are owed for theyears ended December 31, 2008 through 2012. The Kansas Court of Appeals, in a memorandum opinion dated August 9, 2013, reversed the BOTA decision in partand remanded the case to BOTA, instructing BOTA to classify each asset on an asset by asset basis instead of making a broad determination that the entire plantwas real property as BOTA did originally. The County filed a motion for rehearing with the Kansas Court of Appeals and a petition for review with the KansasSupreme Court, both of which have been denied.In March 2015, BOTA concluded that based upon an asset by asset determination, a substantial majority of the assets in dispute will be classified as personalproperty for the 2008 tax year. CRNF and the County next will submit evidence of valuation to BOTA with respect to the real property, following which, BOTAwill issue its final decision. No amounts have been received or recognized in these consolidated financial statements related to the 2008 property tax matter orBOTA's decision.On February 25, 2013, the County and CRNF agreed to a settlement for tax years 2009 through 2012, which has lowered and will lower CRNF's propertytaxes by about $11 million per year (as compared to the 2012 tax year) for tax years 2013 to 2016 based on current mill levy rates. In addition, the settlementprovides the County will support CRNF's application before BOTA for a ten-year tax exemption for the UAN expansion. Finally, the settlement provides thatCRNF will continue its appeal of the 2008 reclassification and reassessment discussed above.The SEC is conducting an investigation in connection with CVR's disclosures following the announcement of a tender offer for its stock initiated in February2012. CVR is cooperating with the SEC and has produced, at the SEC's request, documents pertaining to the tender offer and its disclosures.Flood, Crude Oil Discharge and InsuranceCrude oil was discharged from the Coffeyville refinery on July 1, 2007, due to the short amount of time available to shutdown and secure the refinery inpreparation for the flood that occurred on June 30, 2007. On October 25, 2010, the CVR received a letter from the United States Coast Guard on behalf of the EPAseeking approximately $1.8 million in oversight cost reimbursement. CVR responded by asserting defenses to the Coast Guard's claim for oversight costs. OnSeptember 23, 2011, the United States Department of Justice ("DOJ"), acting on behalf of the EPA and the United States Coast Guard, filed suit against CRRM inthe United States District Court for the District of Kansas seeking recovery from CRRM related to alleged non-compliance with the Clean Air Act's RiskManagement Program ("RMP"), the Clean Water Act ("CWA") and the OPA. CRRM reached an agreement with the DOJ resolving its claims under CWA andOPA. The agreement was memorialized in a Consent Decree that was filed with and approved by the Court on February 12, 2013 and March 25, 2013, respectively(the "2013 Consent Decree"). On April 19, 2013, CRRM paid a civil penalty (including accrued interest) in the amount of $0.6223ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSmillion related to the CWA claims and reimbursed the Coast Guard for oversight costs under OPA in the amount of $1.7 million. The 2013 Consent Decree alsorequires CRRM to make small capital upgrades to the Coffeyville refinery crude oil tank farm, develop flood procedures and provide employee training, themajority of which have already been completed.The parties also reached an agreement to settle DOJ’s claims related to alleged non-compliance with RMP. The agreement is memorialized in a separateconsent decree that was filed with and approved by the Court on May 21, 2013 and July 2, 2013, respectively, and provided for a civil penalty of $0.3 million . OnJuly 29, 2013, CRRM paid the civil penalty related to the RMP claims. In 2015, CRRM continued to implement the recommendations of several audits required bythe RMP Consent Decree, which were related to compliance with RMP requirements.CRRM sought insurance coverage for the crude oil release and for the ultimate costs for remediation and third-party property damage claims. On July 10,2008, CVR filed a lawsuit in the United States District Court for the District of Kansas (the "Court") against certain of CVR's environmental insurance carriersrequesting insurance coverage indemnification for the June/July 2007 flood and crude oil discharge losses. Each insurer reserved its rights under various policyexclusions and limitations and cited potential coverage defenses. The Court issued summary judgment opinions that eliminated the majority of the insurancedefendants' reservations and defenses. CRRM has received $25 million of insurance proceeds under its primary environmental liability insurance policy, whichconstitutes full payment of the primary pollution liability policy limit. During the second quarter of 2015, CRRM entered into a settlement agreement and releasewith the insurance carriers involved in the lawsuit, pursuant to which (i) CRRM received settlement proceeds of approximately $31 million , (ii) the partiesmutually released each other from all claims relating to the flood and crude oil discharge and (iii) all pending appeals have been dismissed. Of the settlementproceeds received, $27 million were recorded as a flood insurance recovery located in other income within the consolidated statements of operations for the yearended December 31, 2015. The remaining $4 million of settlement proceeds reduced $4 million of receivable related to this matter, which was included in otherassets on the consolidated balance sheets as of December 31, 2014.Environmental, Health and Safety MattersThe petroleum and nitrogen fertilizer businesses are subject to various stringent federal, state, and local Environmental, Health and Safety ("EHS") rules andregulations. Liabilities related to EHS matters are recognized when the related costs are probable and can be reasonably estimated. Estimates of these costs arebased upon currently available facts, existing technology, site-specific costs and currently enacted laws and regulations. In reporting EHS liabilities, no offset ismade for potential recoveries.CRRM, CRNF, Coffeyville Resources Crude Transportation, LLC ("CRCT"), Wynnewood Refining Company, LLC ("WRC") and Coffeyville ResourcesTerminal, LLC ("CRT") own and/or operate manufacturing and ancillary operations at various locations directly related to petroleum refining and distribution andnitrogen fertilizer manufacturing. Therefore, CRRM, CRNF, CRCT, WRC and CRT have exposure to potential EHS liabilities related to past and present EHSconditions at these locations. Under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), the Resource Conservation andRecovery Act (“RCRA”), and related state laws, certain persons may be liable for the release or threatened release of hazardous substances. These persons includethe current owner or operator of property where a release or threatened release occurred, any persons who owned or operated the property when the releaseoccurred, and any persons who disposed of, or arranged for the transportation or disposal of, hazardous substances at a contaminated property. Liability underCERCLA is strict, and under certain circumstances, joint and several, so that any responsible party may be held liable for the entire cost of investigating andremediating the release of hazardous substances. Similarly, the OPA generally subjects owners and operators of facilities to strict, joint and several liability for allcontainment and clean-up costs, natural resource damages, and potential governmental oversight costs arising from oil spills into waters of the United States, whichhas been broadly interpreted to include most water bodies including intermittent streams.CRRM, CRNF, CRCT, WRC and CRT are subject to extensive and frequently changing federal, state and local, environmental and health and safety laws andregulations governing the emission and release of hazardous substances into the environment, the treatment and discharge of waste water, the storage, handling, useand transportation of petroleum and nitrogen products, and the characteristics and composition of gasoline and diesel fuels. The ultimate impact of complying withevolving laws and regulations is not always clearly known or determinable due in part to the fact that CVR's operations may change over time and certainimplementing regulations for laws, such as the federal Clean Air Act, have not yet been finalized, are under governmental or judicial review or are being revised.These laws and regulations could result in increased capital, operating and compliance costs for our Energy segment.224ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSCRRM and CRT have agreed to perform corrective actions at the Coffeyville, Kansas refinery and the now-closed Phillipsburg, Kansas terminal facility,pursuant to Administrative Orders on Consent issued under RCRA to address historical contamination by the prior owners (RCRA Docket No. VII-94-H-20 andDocket No. VII-95-H-11, respectively). WRC and the Oklahoma Department of Environmental Quality ("ODEQ") have entered into a Consent Order (Case No.15-056) to resolve certain legacy environmental issues related to historical groundwater contamination and the operation of a wastewater conveyance. AsDecember 31, 2015 and 2014, environmental accruals of $4 million and $1 million , respectively, were reflected in the consolidated balance sheets for probableand estimated costs for remediation of environmental contamination under the RCRA Administrative Orders and the ODEQ Consent Order. Accruals weredetermined based on an estimate of payment costs through 2026, for which the scope of remediation was arranged with the EPA and ODEQ, and were discountedat the appropriate risk free rates at December 31, 2015 and 2014. The accruals include estimated closure and post-closure costs of less than $1 million for the twolandfills at both December 31, 2015 and 2014.CVR's management periodically reviews and, as appropriate, revises its environmental accruals. Based on current information and regulatory requirements,CVR's management believes that the accruals established for environmental expenditures are adequate.In 2007, the EPA promulgated the Mobile Source Air Toxic II ("MSAT II") rule that requires the reduction of benzene in gasoline by 2011. The MSAT IIprojects for CRRM and WRC were completed within the compliance deadline of November 1, 2014. The projects were completed at a total cost, excludingcapitalized interest, of $48 million for CRRM and $89 million for WRC.In April 2014, the EPA promulgated the Tier 3 Motor Vehicle Emission and Fuel Standards, which will require that gasoline contain no more than ten partsper million of sulfur on an annual average basis. Refineries must be in compliance with the more stringent emission standards by January 1, 2017; however,compliance with the rule is extended until January 1, 2020 for approved small volume refineries and small refiners. In March 2015, the EPA approved theWynnewood refinery's application requesting "small volume refinery" status; therefore, its compliance deadline is January 1, 2020. It is not anticipated that CVR'srefineries will require additional controls or capital expenditures to meet the anticipated new standard.CVR Refining is subject to the Renewable Fuel Standard ("RFS") which requires refiners to either blend "renewable fuels" with their transportation fuels orpurchase renewable fuel credits, known as RINs in lieu of blending. Due to mandates in the RFS requiring increasing volumes of renewable fuels to replacepetroleum products in the U.S. transportation fuel market, there may be a decrease in demand for petroleum products. Beginning in 2011, the Coffeyville refinerywas required to blend renewable fuels into its transportation fuel or purchase RINs in lieu of blending. In 2013, the Wynnewood refinery was subject to the RFSfor the first time. CVR Refining is not able to blend the substantial majority of its transportation fuels and has to purchase RINs on the open market, as well aswaiver credits for cellulosic biofuels from the EPA, in order to comply with the RFS.The cost of RINs has been extremely volatile as the EPA's proposed renewable fuel volume mandates approached the "blend wall." The blend wall refers tothe point at which the amount of ethanol blended into the transportation fuel supply exceeds the demand for transportation fuel containing such levels of ethanol.The blend wall is generally considered to be reached when more than 10% ethanol by volume ("E10 gasoline") is blended into transportation fuel.On December 14, 2015, the EPA published in the Federal Register a final rule establishing the renewable fuel volume mandates for 2014, 2015 and 2016, andthe biomass-based diesel mandate for 2017. The volumes included in the EPA's final rule increase each year, but are lower, with the exception of the volumes forbiomass-based diesel, than the volumes required by the Clean Air Act. The EPA used its waiver authority to lower the volumes, but its decision to do so has beenchallenged in the U.S. Court of Appeals for the District of Columbia Circuit.The cost of RINs for the years ended December 31, 2015 , 2014 and 2013 was $124 million , $127 million and $181 million , respectively. As ofDecember 31, 2015 and 2014, CVR Refining's biofuel blending obligation was $10 million and $52 million , respectively, which is included in accrued expensesand other liabilities on the consolidated balance sheets. The price of RINs has been extremely volatile and has increased over the last year. The future cost of RINsis difficult to estimate. Additionally, the cost of RINs is dependent upon a variety of factors, which include the availability of RINs for purchase, the price at whichRINs can be purchased, transportation fuel production levels, the mix of the petroleum business' petroleum products, as well as the fuel blending performed at theits refineries and downstream terminals, all of which can vary significantly from period to period.225ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSIn March 2004, CRRM and CRT entered into a Consent Decree (the "2004 Consent Decree") with the EPA and the Kansas Department of Health andEnvironment (the "KDHE") to resolve air compliance concerns raised by the EPA and KDHE related to Farmland Industries Inc.'s prior ownership and operationof the Coffeyville crude oil refinery and the now-closed Phillipsburg terminal facilities. Under the 2004 Consent Decree, CRRM agreed to install controls to reduceemissions of sulfur dioxide, nitrogen oxides and particulate matter from its FCCU by January 1, 2011. In addition, pursuant to the 2004 Consent Decree, CRRMand CRT assumed clean-up obligations at the Coffeyville refinery and the now-closed Phillipsburg terminal facilities.In March 2012, CRRM entered into a second consent decree (the "Second Consent Decree") with the EPA and KDHE, which replaced the 2004 ConsentDecree (other than certain financial assurance provisions associated with corrective action at the refinery and terminal under RCRA). The Second Consent Decreewas entered by the U.S. District Court for the District of Kansas on April 19, 2012. The Second Consent Decree gave CRRM more time to install the FCCUcontrols from the 2004 Consent Decree and expands the scope of the settlement so that it is now considered a "global settlement" under the EPA's "NationalPetroleum Refining Initiative." Under the National Petroleum Refining Initiative, the EPA alleged industry-wide non-compliance with four "marquee" issues underthe Clean Air Act: New Source Review, Flaring, Leak Detection and Repair, and Benzene Waste Operations NESHAP. The National Petroleum Refining Initiativehas resulted in most U.S. refineries (representing more than 90% of the U.S. refining capacity) entering into consent decrees requiring the payment of civilpenalties and the installation of air pollution control equipment and enhanced operating procedures. Under the Second Consent Decree, CRRM was required to paya civil penalty of less than $1 million and complete the installation of FCCU controls required under the 2004 Consent Decree, add controls to certain heaters andboilers and enhance certain work practices relating to wastewater and fugitive emissions. The remaining costs of complying with the Second Consent Decree areexpected to be approximately $44 million . Additional incremental capital expenditures associated with the Second Consent Decree will not be material and will belimited primarily to the retrofit and replacement of heaters and boilers over several year time-frame.CRRM has entered into an agreement with the EPA and KDHE to modify provisions in the Second Consent Decree relating to the installation of controls toreduce air emissions of sulfur dioxide from the refinery's FCCU. Pursuant to the terms of the modification, CRRM will be permitted to use alternative means ofcontrol to those currently specified in the Second Consent Decree provided it can meet the limits specified in the modification. In consideration for the EPA andKDHE's agreement to permit CRRM to use alternative controls, CRRM will pay higher stipulated penalties if it fails to meet the SO 2 limits and, if it elects toinstall the original controls, will have to take additional steps to avoid negative impacts to the Verdigris River associated with the original controls. Themodification has been signed by CRRM, the EPA and KDHE, and on February 10, 2016, the modification was lodged with the United States District Court for theDistrict of Kansas. The modification is subject to public notice and comment and, ultimately, approval by the court.WRC entered into a Consent Order with ODEQ in August 2011 (the "Wynnewood Consent Order"). The Wynnewood Consent Order addresses certainhistoric Clean Air Act compliance issues related to the operations of the prior owner. Under the Wynnewood Consent Order, WRC paid a civil penalty of $950,000and agreed to install certain controls, enhance certain compliance programs, and undertake additional testing and auditing. A substantial portion of the costs ofcomplying with the Wynnewood Consent Order were expended during the last turnaround. The remaining costs are expected to be approximately $3 million . Inconsideration for entering into the Wynnewood Consent Order, WRC received a release from liability from ODEQ for matters described in the ODEQ order.In January 2014, the EPA issued an inspection report to the Wynnewood refinery related to a RCRA compliance evaluation inspection conducted in March2013. In February 2014, ODEQ notified WRC that it concurred with the EPA's inspection findings and would be pursuing enforcement. WRC and ODEQ enteredinto a Consent Order in June 2015 resolving all alleged non-compliance associated with the RCRA compliance evaluation inspection, as well as issues related topossible soil and groundwater contamination associated with the prior owner's operation of the refinery. The Consent Order requires WRC to take certaincorrective actions, including specified groundwater remediation and monitoring measures pursuant to a work plan to be approved by ODEQ. CVR Refining doesnot anticipate that the costs of complying with the Consent Order will be material.Environmental expenditures are capitalized when such expenditures are expected to result in future economic benefits. For the years ended December 31,2015 , 2014 and 2013, capital expenditures were approximately $36 million , $101 million and $111 million , respectively, and were incurred to improve theenvironmental compliance and efficiency of the operations.226ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSCRRM, CRNF, CRCT, WRC and CRT each believe it is in substantial compliance with existing EHS rules and regulations. There can be no assurance thatthe EHS matters described above or other EHS matters which may develop in the future will not have a material adverse effect on CVR's business, financialcondition, or results of operations.On September 28, 2012, the Wynnewood refinery experienced an explosion in a boiler unit during startup after a short outage as part of the turnaroundprocess. Two employees were fatally injured. Damage at the refinery was limited to the boiler. Additionally, there has been no evidence of environmental impact.The refinery was in the final stages of shutdown for turnaround maintenance at the time of the incident. The petroleum business completed an internal investigationof the incident and cooperated with OSHA in its investigation. OSHA also conducted a general inspection of the facility during the boiler incident investigation. InMarch 2013, OSHA completed its investigation and communicated its citations to WRC. OSHA also placed WRC in its Severe Violators Enforcement Program("SVEP"). WRC is vigorously contesting the citations and OSHA's placement of WRC in the SVEP. Any penalties associated with OSHA's citations are notexpected to have a material adverse effect on the consolidated financial statements. In addition to the above, the spouses of the two employees fatally injured havefiled a civil lawsuit against CVR Refining and CVR Energy in Fort Bend County, Texas. The companies will vigorously defend the suit. It is currently too early toassess a potential outcome in the matter.MetalsEnvironmental MattersCertain of PSC Metals' facilities are environmentally impaired in part as a result of operating practices at the sites prior to their acquisition by PSC Metals andas a result of PSC Metals' operations. PSC Metals has established procedures to periodically evaluate these sites, giving consideration to the nature and extent ofthe contamination. PSC Metals has provided for the remediation of these sites based upon management's judgment and prior experience. PSC Metals has estimatedthe liability to remediate these sites to be $29 million and $28 million as of December 31, 2015 and 2014, respectively. Management believes, based on pastexperience, that the vast majority of these environmental liabilities and costs will be assessed and paid over an extended period of time. PSC Metals believes that itwill be able to fund such costs in the ordinary course of business.Estimates of PSC Metals' liability for remediation of a particular site and the method and ultimate cost of remediation require a number of assumptions thatare inherently difficult to make, and the ultimate outcome may be materially different from current estimates. Moreover, because PSC Metals has disposed ofwaste materials at numerous third-party disposal facilities, it is possible that PSC Metals will be identified as a PRP at additional sites. The impact of such futureevents cannot be estimated at the current time.PSC Metals has been designated as a PRP under U.S. federal and state superfund laws with respect to certain sites with which PSC Metals may have had adirect or indirect involvement. It is alleged that PSC Metals and its subsidiaries or their predecessors transported waste to the sites, disposed of waste at the sites oroperated the sites in question. In addition, one of PSC Metals' Knoxville locations was the subject of investigations by the State of Tennessee under the federalSuperfund law. These investigations were performed by the State of Tennessee pursuant to a contract with the EPA. PSC Metals is exploring a potential settlementof the matter. Currently, PSC Metals cannot assess the impact of any cost or liability associated with these investigations. With respect to all other matters in whichPSC Metals has been designated as a PRP under U.S. federal and state superfund laws, PSC Metals has reviewed the nature and extent of the allegations, thenumber, connection and financial ability of other named and unnamed PRPs and the nature and estimated cost of the likely remedy. Based on reviewing the natureand extent of the allegations, PSC Metals has estimated its liability to remediate these sites to be immaterial at each of December 31, 2015 and 2014. If it isdetermined that PSC Metals has liability to remediate those sites and that more expensive remediation approaches are required in the future, PSC Metals couldincur additional obligations, which could be material.In November and December of 2011, PSC Metals received three notices of violation ("NOV") from the Missouri Department of Natural Resources(“MDNR”) for hazardous waste and water violations related to its Festus, Missouri location. PSC Metals has entered into a settlement with MDNR that resolvesthese NOVs. Currently, PSC Metals believes that it has established adequate reserves for the cost of this settlement. In addition, PSC Metals believes that it has aclaim for indemnification against the prior owner of the facility associated with the above-referenced notices of violation. MDNR and PSC Metals, as part of theresolution of MDNR's NOVs, have undertaken sampling for lead at residences near PSC Metals' Festus yard. Approximately 67 residences were sampled andtested, and of those, approximately 15 tested above residential standards for lead contamination. PSC Metals has entered into a settlement agreement with MDNRwhich resolves MNDR’s claims and requires limited soil remediation at the 15 residences. PSC Metals is in the process of completing the final stages of227ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSthe remediation required by the settlement agreement. Currently, PSC Metals believes that it has adequately reserved for the cost of remediation associated with itsFestus yard and the residential areas near the yard. However, PSC Metals cannot assess its liability with certainty at this time. Additionally, PSC Metals believesthat liability for off-site contamination was retained by the prior owner of the Festus yard and accordingly, it would have a claim for indemnification against theprior owner.RailcarOn October 24, 2014, ARI filed a complaint in United States District Court for the Southern District of New York against Gyansys, Inc. ("Gyansys"). Thecomplaint asserts a claim against Gyansys for breaching its contract with ARI to implement an enterprise resource planning system. ARI seeks to recover monetarydamages in an amount still to be determined, but which ARI alleged exceeds $25 million . Gyansys filed a response to the suit denying its responsibility. It alsocounterclaimed against ARI for a breach of contract and wrongful termination, seeking damages in excess of $10 million and equitable relief. At this time, ARIdoes not have sufficient information to reasonably form an estimate of the potential outcome (gain or loss) of this litigation. On September 9, 2015, the courtdenied ARI's motion to dismiss the wrongful termination counterclaim. However, ARI continues to believe that Gyansys' counterclaims lack merit and willcontinue to vigorously defend against these counterclaims.GamingTropicana AC Tax Appeal SettlementIn January 2013, Tropicana settled outstanding real estate tax appeals involving our Tropicana AC property with the City of Atlantic City. The settlementinvolves the tax years 2008 through 2012 and also covers negotiated real estate assessments for 2013 and 2014. Under the terms of the settlement, Tropicana ACwas to receive approximately $50 million refund in the form of credits against annual real estate tax bills beginning in 2013 and ending in 2017. The credits wereto be front-loaded in 2013 and 2014 so that after the credits were applied, Tropicana AC paid approximately $2 million in taxes in 2013. Tropicana utilized $16million of credits as a reduction to operating expenses in the year ended December 31, 2013. In addition, Tropicana expensed $4 million in professional feesrelated to this settlement in the year ended December 31, 2013. In January 2014, Tropicana received approximately $32 million in cash as payment to satisfy futurecredits.Tropicana Evansville Land LeaseTropicana leases from the city of Evansville, Indiana approximately ten acres of the approximately 20 acres on which Tropicana Evansville is situated. OnJanuary 6, 2016, Tropicana and the city of Evansville entered into a sixth amendment to the lease agreement (the "Sixth Amendment"). Under the SixthAmendment, in exchange for Tropicana's commitment to expend $50 million to develop a landside gaming facility (the "Tropicana Development Project") alongwith a prepayment of lease rent in the amount of $25 million (the "Rental PrePayments"), the city of Evansville has granted Tropicana a $20 million redevelopmentcredit (the "Redevelopment Credit"). The Rental PrePayments are to be made in two payments of $12.5 million each. Tropicana has made the first $12.5 millionRental PrePayment, and the second $12.5 million Rental PrePayment is due upon the opening of the Tropicana Development Project to the public. Both the RentalPrePayments and the Redevelopment Credits will be applied against future rent in equal monthly amounts over a period of one hundred and twenty (120) monthscommencing upon the opening of the Tropicana Development Project to the public. Under the terms of the lease, as amended by the Sixth Amendment, Tropicanamay extend the lease term through November 30, 2055 by exercising renewal options. The current term commenced December 1, 2015 and expires November 30,2027 under the terms of the Sixth Amendment. Thereafter, Tropicana may extend the lease for a three (3) year term through November 30, 2030, followed by five(5) five-year renewal options through November 30, 2055. Under the terms of the Sixth Amendment, in the event Tropicana decides not to exercise its renewaloption(s) and continues to conduct gaming operations in the city of Evansville, the lease may not be terminated and will continue through November 30, 2055,unless Tropicana and the city of Evansville enter into a replacement agreement that includes payments to the city of Evansville in the amount equal to rentpayments under the lease. Under the terms of the lease, as amended by the Sixth Amendment, Tropicana is required to pay a percentage of the adjusted grossreceipts for the year in rent with a minimum annual rent of no less than $2 million , subject to certain escalations and caps. In accordance with a prior leaseamendment in March 2010, during 2010 Tropicana paid a total of $14 million for the prepayment of rent to the city of Evansville for the period between January2011 and December 2015.Other MattersMr. Icahn, through certain affiliates, owns 100% of Icahn Enterprises GP and approximately 89.0% of Icahn Enterprises' outstanding depositary units as ofDecember 31, 2015 . Applicable pension and tax laws make each member of a “controlled228ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSgroup” of entities, generally defined as entities in which there is at least an 80% common ownership interest, jointly and severally liable for certain pension planobligations of any member of the controlled group. These pension obligations include ongoing contributions to fund the plan, as well as liability for any unfundedliabilities that may exist at the time the plan is terminated. In addition, the failure to pay these pension obligations when due may result in the creation of liens infavor of the pension plan or the Pension Benefit Guaranty Corporation ("PBGC") against the assets of each member of the controlled group.As a result of the more than 80% ownership interest in us by Mr. Icahn’s affiliates, we and our subsidiaries are subject to the pension liabilities of entities inwhich Mr. Icahn has a direct or indirect ownership interest of at least 80%. As a result of our ownership of more than 80% in our subsidiaries, we and oursubsidiaries are subject to the pension liabilities of all entities in which Mr. Icahn has a direct or indirect ownership interest of at least 80%. ACF and Federal-Mogul, are the sponsors of several pension plans. All the minimum funding requirements of the Code and the Employee Retirement Income Security Act of 1974,as amended by the Pension Protection Act of 2006, for these plans have been met as of December 31, 2015 and 2014. If the plans were voluntarily terminated, theywould be underfunded by approximately $589 million and $474 million as of December 31, 2015 and 2014, respectively. These results are based on the mostrecent information provided by the plans’ actuaries. These liabilities could increase or decrease, depending on a number of factors, including future changes inbenefits, investment returns, and the assumptions used to calculate the liability. As members of the controlled group, we would be liable for any failure of ACF andFederal-Mogul to make ongoing pension contributions or to pay the unfunded liabilities upon a termination of the pension plans of ACF and Federal-Mogul. Inaddition, other entities now or in the future within the controlled group in which we are included may have pension plan obligations that are, or may become,underfunded and we would be liable for any failure of such entities to make ongoing pension contributions or to pay the unfunded liabilities upon termination ofsuch plans.The current underfunded status of the pension plans of ACF and Federal-Mogul requires them to notify the PBGC of certain “reportable events,” such as ifwe cease to be a member of the ACF and Federal-Mogul controlled group, or if we make certain extraordinary dividends or stock redemptions. The obligation toreport could cause us to seek to delay or reconsider the occurrence of such reportable events.Starfire Holding Corporation ("Starfire"), which is 99.4% owned by Mr. Icahn, has undertaken to indemnify us and our subsidiaries from losses resultingfrom any imposition of certain pension funding or termination liabilities that may be imposed on us and our subsidiaries or our assets as a result of being a memberof the Icahn controlled group. The Starfire indemnity (which does not extend to pension liabilities of our subsidiaries that would be imposed on us as a result of ourinterest in these subsidiaries and not as a result of Mr. Icahn and his affiliates holding more than an 80% ownership interest in us, and as such would not extend tothe unfunded pension termination liability for Federal-Mogul) provides, among other things, that so long as such contingent liabilities exist and could be imposedon us, Starfire will not make any distributions to its stockholders that would reduce its net worth to below $250 million . Nonetheless, Starfire may not be able tofund its indemnification obligations to us.Consolidated LeasesConsolidated future minimum lease payments under operating leases with initial terms of one or more years consist of the following at December 31, 2015 :Year Amount (in millions)2016 $1042017 882018 822019 552020 48Thereafter 156 $533229ICAHN ENTERPRISES L.P. AND SUBSIDIARIESICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS18 .Subsequent Events .Icahn EnterprisesDistributionOn February 23, 2016 , the board of directors of the general partner of Icahn Enterprises declared a quarterly distribution in the amount of $1.50 perdepositary unit, which will be paid on or about April 12, 2016 to depositary unitholders of record at the close of business on March 7, 2016 . Depositaryunitholders will have until March, 31 2016 to make an election to receive either cash or additional depositary units; if a holder does not make an election, it willautomatically be deemed to have elected to receive the dividend in cash. Depositary unitholders who elect to receive additional depositary units will receive unitsvalued at the volume weighted average trading price of the units on NASDAQ during the 5 consecutive trading days ending April 7, 2016 . No fractionaldepositary units will be issued pursuant to the distribution payment. Icahn Enterprises will make a cash payment in lieu of issuing fractional depositary units to anyholders electing to receive depositary units. Any holders that would only be eligible to receive a fraction of a depositary unit based on the above calculation willreceive a cash payment.AutomotiveAcquisitionsRefer to Note 3 , " Operating Units - Automotive," for discussion of our acquisition of Pep Boys in February 2016.On February 28, 2016, Icahn Enterprises issued a proposal to the board of directors of Federal-Mogul to purchase the shares of Federal-Mogul common stocknot owned by us in a merger transaction pursuant to which Federal-Mogul shareholders would receive $7.00 per share in cash for their Federal-Mogul shares.19 .Quarterly Financial Data (Unaudited) .Quarterly financial data for Icahn Enterprises is presented below: For the Three Months Ended March 31, June 30, September 30, December 31, 2015 2014 2015 2014 2015 2014 2015 2014 (in millions, except per unit data)Net sales$3,565 $4,666 $3,979 $4,867 $3,720 $4,557 $3,340 $3,982Gross margin on net sales440 524 655 540 496 339 272 184Total revenues4,511 4,990 4,984 6,379 3,212 4,422 2,565 3,366Net income (loss)422 77 541 1,123 (940) (627) (2,150) (1,102)Net (income) loss attributable tonon-controlling interests(261) (106) (329) (634) 500 272 1,023 624Net income (loss) attributable toIcahn Enterprises161 (29) 212 489 (440) (355) (1,127) (478)Basic income (loss) per LP unit(1)$1.28 $(0.24) $1.68 $4.06 $(3.40) $(2.90) $(8.56) $(3.84)Diluted income (loss) per LP unit(1)$1.27 $(0.24) $1.68 $4.06 $(3.40) $(2.90) $(8.56) $(3.84)(1) Basic and diluted income (loss) per LP unit is computed separately for each quarter and therefore, the sum of such quarterly per LP unit amounts may differ from the total for the year.230Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure.None.Item 9A. Controls and Procedures.Evaluation of Disclosure Controls and ProceduresAs of December 31, 2015 , our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design andoperation of Icahn Enterprises' and Icahn Enterprises Holdings' and subsidiaries' disclosure controls and procedures pursuant to the Rule 13a-15(e) and 15d-15(e)promulgated under the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controlsand procedures are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded,processed, summarized and reported within the time periods specified in SEC rules and forms, and include controls and procedures designed to ensure thatinformation required to be disclosed by us in such reports is accumulated and communicated to our management, including our Chief Executive Officer and ChiefFinancial Officer, as appropriate to allow timely decisions regarding required disclosure.Management's Report on Internal Control Over Financial ReportingOur management is responsible for establishing and maintaining adequate internal control over financial reporting and for an assessment of the effectivenessof internal control over financial reporting; as such items are defined in Rule 13a-15f under the Exchange Act.Our internal control over financial reporting is designed to provide reasonable assurance that our financial reporting and preparation of financial statements isreliable and in accordance with generally accepted accounting principles. Our policies and procedures are designed to provide reasonable assurance thattransactions are recorded and records maintained in reasonable detail as necessary to accurately and fairly reflect transactions and that all transactions are properlyauthorized by management in order to prevent or timely detect unauthorized transactions or misappropriation of assets that could have a material effect on ourfinancial statements.Management is required to base its assessment on the effectiveness of our internal control over financial reporting on a suitable, recognized controlframework. Management has utilized the criteria established in the 2013 Internal Control-Integrated Framework issued by the Committee of SponsoringOrganizations of the Treadway Commission (“COSO”) to evaluate the effectiveness of internal control over financial reporting.Our management has performed an assessment according to the guidelines established by COSO. Based on the assessment, management has concluded thatour system of internal control over financial reporting, as of December 31, 2015 , is effective.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation ofeffectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance withthe policies or procedures may deteriorate.Grant Thornton LLP, our independent registered public accounting firm, has audited and issued their reports on Icahn Enterprises' internal control overfinancial reporting, which appears below.Changes in Internal Control Over Financial ReportingThere have been no changes in our internal control over financial reporting during the fourth quarter of 2015 that have materially affected, or are reasonablylikely to materially affect, our internal control over financial reporting.231REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo the Partners ofIcahn Enterprises L.P.We have audited the internal control over financial reporting of Icahn Enterprises L.P. (a Delaware limited partnership) and subsidiaries (the “Partnership”) as ofDecember 31, 2015, based on criteria established in the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of theTreadway Commission (COSO). The Partnership’s management is responsible for maintaining effective internal control over financial reporting and for itsassessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over FinancialReporting. Our responsibility is to express an opinion on the Partnership’s internal control over financial reporting based on our audit.We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that weplan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in thecircumstances. We believe that our audit provides a reasonable basis for our opinion.A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financialreporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation ofeffectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance withthe policies or procedures may deteriorate.In our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on criteriaestablished in the 2013 Internal Control-Integrated Framework issued by COSO.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statementsof the Partnership as of and for the year ended December 31, 2015, and our report dated February 29, 2016 expressed an unqualified opinion on those financialstatements./s/GRANT THORNTON LLPNew York, New YorkFebruary 29, 2016232Item 9B. Other Information.None.233PART IIIItem 10. Directors, Executive Officers and Corporate Governance.The names, offices held and ages of the directors and executive officers of Icahn Enterprises G.P., Inc. ("Icahn Enterprises GP") as of February 29, 2016 areas follows:Name Age PositionCarl C. Icahn 80 Chairman of the BoardKeith Cozza 37 President, Chief Executive Officer and DirectorSungHwan Cho 41 Chief Financial Officer and DirectorPeter Reck 49 Chief Accounting OfficerWilliam A. Leidesdorf 70 DirectorJames L. Nelson 66 DirectorJack G. Wasserman 79 DirectorOur directors are selected by Carl C. Icahn, as the controlling stockholder of Icahn Enterprises GP, and are not elected by our limited partners. Individualswho possess characteristics that include integrity, business experience, financial acumen and leadership abilities are qualified to serve on our board of directors.Listed below are our directors and executive officers with their biographies. In addition, we have summarized for each director why such director has been chosento serve on our board of directors.Carl C. Icahn has served as chairman of the board and a director of Starfire Holding Corporation, a privately-held holding company, and chairman of theboard and a director of various subsidiaries of Starfire, since 1984. Since August 2007, through his position as Chief Executive Officer of Icahn Capital LP, awholly owned subsidiary of Icahn Enterprises L.P. ("Icahn Enterprises") and Icahn Enterprises Holdings L.P. ("Icahn Enterprises Holdings") and certain relatedentities, Mr. Icahn's principal occupation is managing the private investment funds comprising our Investment segment. Since November 1990, Mr. Icahn has beenchairman of the board of Icahn Enterprises GP, the general partner of Icahn Enterprises and Icahn Enterprises Holdings. Mr. Icahn has been: chairman of the boardof CVR Refining GP, LLC, the general partner of CVR Refining, LP, , since January 2013; chairman of the board of CVR Energy, Inc., since June 2012; chairmanof the board of Tropicana Entertainment Inc since March 2010;; President and a member of the executive committee of XO Holdings, a competitive provider oftelecom services since September 2011, and chairman of the board and a director of its predecessors since January 2003; Mr. Icahn was previously: a director ofFederal-Mogul Corporation, or Federal-Mogul, from December 2007 to May 2015, and the non-executive chairman of the board of Federal-Mogul from January2008 to May 2015; a director of American Railcar Leasing LLC from June 2004 to July 2014; and chairman of the board and a director of American RailcarIndustries, Inc from 1994 to 2014; a director of WestPoint Home LLC (, from October 2005 until December 2011; and a director of Cadus Corporation, a companyengaged in the acquisition of real estate for renovation or construction and resale, from July 1993 to July 2010.Mr. Icahn brings to his role as the chairman of the board his significant business experience in leadership roles as director in various companies as discussedabove, including certain of our subsidiaries. In addition, Mr. Icahn is uniquely qualified based on his historical background for creating value in companies acrossmultiple industries. Mr. Icahn has proven to be a successful investor over the past 40 years.Keith Cozza has served as President and Chief Executive Officer of Icahn Enterprises and Icahn Enterprises Holdings, and their general partner, IcahnEnterprises GP, since February 2014, and as a director since September 2012. Mr. Cozza served as Executive Vice President from February 2013 to February2014. Mr. Cozza has served as the Chief Operating Officer of Icahn Capital, a wholly owned subsidiary of Icahn Enterprises and Icahn Enterprises Holdings, sinceFebruary 2013. Mr. Cozza has served as the Chief Financial Officer of Icahn Associates Holding LLC, a company controlled by Carl C. Icahn, since 2006. From2004 to 2006 Mr. Cozza served as Controller at Icahn Associates Holding LLC. Prior to that Mr. Cozza was a senior assurance associate at Grant Thornton LLP.Mr. Cozza has been a director of: The Pep Boys - Manny, Moe & Jack, an automotive parts installer and retailer, since February 2016; a director of: FCX Oil& Gas Inc., a wholly-owned subsidiary of Freeport-McMoRan Inc., since October 2015; IEH Auto Parts LLC, since June 2015; Tropicana Entertainment Inc.,since February 2014; PSC Metals Inc., since February 2014; Herbalife Ltd., a nutrition company, since April 2013 and XO Holdings, a competitive provider oftelecom services, since August 2011. Mr. Cozza has also been a member of the Executive Committee of American Railcar Leasing LLC since June 2014. Mr.Cozza was previously a director of CVR Refining GP, LLC, the general partner of CVR Refining, LP, from January 2013 to February 2014; and MGM HoldingsInc., an entertainment company focused on the production and distribution of film and television content,234from April 2012 to August 2012. XO Holdings is indirectly controlled by Carl C. Icahn. Mr. Icahn also has or previously had non-controlling interests in Freeport-McMoRan, Herbalife and MGM Holdings through the ownership of securities.Mr. Cozza brings to his service as a director his significant experience in leadership roles as director of various companies as discussed above. In particular,his experience as the Chief Financial Officer of Icahn Associates Holding LLC enables him to understand the complex business and financial issues that we mayface.SungHwan Cho has served as Chief Financial Officer of Icahn Enterprises and Icahn Enterprises Holdings and their general partner, Icahn Enterprises GP,since March 2012 and as a director since September 2012. Prior to that time, he was Senior Vice President and previously Portfolio Company Associate at IcahnEnterprises and Icahn Enterprises Holdings from October 2006 to February 2012. From 2004 to 2006, Mr. Cho served as director of finance for Atari, Inc., apublisher of interactive entertainment products. From 1999 to 2002, Mr. Cho served as director of corporate development and director of product development atTalk America, a telecommunications provider to small business and residential customers. From 1996 to 1999, he was an investment banker at Salomon SmithBarney in New York and Tokyo.Mr. Cho has been a director of: Ferrous Resources Limited, since June 2015;American Railcar Leasing LLC, since September 2013; CVR Refining GP, LLC,the general partner of CVR Refining, LP since January 2013; CVR Energy, Inc., since May 2012; CVR GP, LLC, the general partner of CVR Partners LP, sinceMay 2012; Federal-Mogul Corporation, since May 2012; XO Holdings, a competitive provider of telecom services, since August 2011; American RailcarIndustries, Inc., since June 2011; Take-Two Interactive Software Inc., a publisher of interactive entertainment products, from April 2010 until November 2013;WestPoint Home LLC since January 2008; PSC Metals Inc. since December 2006; and Viskase Companies, Inc since November 2006. XO Holdings is indirectlycontrolled by Carl C. Icahn. Mr. Icahn also previously had a non-controlling interest in Take-Two Interactive Software through the ownership of securities.Mr. Cho brings to his service as a director his significant experience in leadership roles as director of various companies as discussed above. In particular, hisservice the as Chief Financial Officer of Icahn Enterprises and Icahn Enterprises Holdings enables him to understand the complex business and financial issues thatwe may face.Peter Reck has served as Chief Accounting Officer of our general partner, Icahn Enterprises GP, since March 2012, and as its Secretary since April 2012. Mr.Reck was Controller of Icahn Enterprises and Icahn Enterprises Holdings from November 2005 to March 2012. Since March 2012, Mr. Reck has served as thedirector of Viskase Companies, Inc. Previously, Mr. Reck was the Controller of Family Office and Treasurer of Philanthropies for Bromor Management, theFamily Office of Charles Bronfman. Mr. Reck also served as Controller for the Bank of Uruguay and worked at KMPG LLP in their audit practice.William A. Leidesdorf has served as a director of Icahn Enterprises GP since March 1991 and is a member of our audit committee. Mr. Leidesdorf has servedas a director and member of the audit committee of Tropicana Entertainment Inc., since May 2014, and a director of IEH Auto Parts LLC, since June 2015. Mr.Leidesdorf previously served as: a director and member of the audit committee of American Entertainment Properties Corp., a subsidiary of Icahn Enterprises,from December 2003 to March 2013; a director of Renco Steel, during its bankruptcy, its subsidiary, WCI Steel, Inc., a steel producer which filed for Chapter 11bankruptcy protection and Simpson Housing Limited Partnership, a privately held real estate investment trust; an owner and a managing director of RenaissanceHousing, LLC, and a company primarily engaged in the acquisition of multifamily housing and, the owner and managing director of Renaissance HamptonsMayfair, LLC, a company primarily engaged in acquiring multifamily residential properties from 2008 until April 2015; and a principal in Bedrock InvestmentManagement Group, LLC, a company engaged in the acquisition of troubled residential subdivisions, from 2008 until December 2014.Mr. Leidesdorf brings to his service as a director his significant business experience and leadership role as a director in various companies including certainof our subsidiaries. His experience has enabled him to understand the complex business and financial issues that companies may face. Mr. Leidesdorf has also hadexperience with large-scale real estate workouts and has been responsible for managing real estate portfolios for a number of institutions, including responsibilityfor audits and compliance with various federal and state regulatory authorities.James L. Nelson has served as a director and member of the audit committee of the general partner of Icahn Enterprises L.P. since June 2001. Mr. Nelson hasalso served as a director of: New York REIT, Inc., a publicly traded real estate investment trust, since November 2015; and Herbalife Ltd., a nutrition company inwhich Mr. Icahn holds a non-controlling interest through the ownership of securities, since April 2014. Mr. Nelson has served as a director of IEH Auto Parts LLC,an automotive parts distributor, since June 2015. Mr. Nelson previously served as: a director and member of the compensation, governance and strategicalternatives committees of Voltari Corporation, a commercial real estate company controlled by Mr. Icahn, from June 2011 through September 2015 (and, fromJanuary 2012 through September 2015, served as Chairman of its Board of Directors); a director of VII Peaks Co-Optivist Income BDC II, Inc., an externallymanaged, closed-end management investment company, from November 2013 through August 2014; a director of Ubiquity Broadcasting Corporation, a verticallyintegrated, technology-focused media company, from April 2014 to August 2014; a director and member of the audit committee235of Tropicana Entertainment Inc. from March 2010 to May 2014; a director and member of the Governance and Nominating Committee of SITO Mobile, Ltd., atechnology-based mobile solutions provider serving businesses, advertisers and brands, from May 2013 to April 2014; a director and member of the auditcommittee of Take Two Interactive Software, Inc., a publisher, developer, and distributor of video games and video game peripherals in which Mr. Icahnpreviously held an interest through the ownership of securities, from April 2010 through November 2013; a director and as chairman of the audit committee of theboard of directors of Cequel Communications, an owner and operator of a large cable television system, from April 2008 to November 2012; and a director andchairman of the audit committee of Viskase Companies, Inc. from April 2003 through April 2010. Mr. Nelson brings to his service as a director his significant experience and leadership roles serving as chief executive officer, director and chairman of theaudit committee of various companies.Jack G. Wasserman has served as a director and the Chairman of the audit committee of the general partner of Icahn Enterprises L.P., since December 1993.Mr. Wasserman has also served as a director of Cadus Corporation, a company engaged in the acquisition of real estate for renovation or construction and resale, acompany controlled by Mr. Icahn, since December 1998. Mr. Wasserman has served as a director of IEH Auto Parts LLC since June 2015. Mr. Wasserman hasbeen engaged in the practice of law as a sole practitioner, since September 2001. Mr. Wasserman previously served as: a director of Wendy's, a franchisor of theWendy's restaurant system, as the chairman of the ERISA committee of Wendy’s and as a member of the audit and compensation committees of Wendy's, fromMarch 2004 to June 2015; a director and chairman of the audit committee of American Entertainment Properties Corp. a subsidiary of Icahn Enterprises, fromDecember 2003 to March 2013; and a senior partner of Wasserman, Schneider, Babb & Reed, a New York-based law firm, and its predecessors, from 1966 until2001. He is a current and past director of numerous not-for-profit organizations. Mr. Wasserman is an attorney and a member of the Bars of New York, Florida andthe District of Columbia.Mr. Wasserman brings to his service as a director his significant experience and leadership roles as a director of various public companies. In addition, Mr.Wasserman practiced law for almost 40 years with the law firm of Wasserman, Schneider, Babb & Reed of which he was a senior partner; the firm concentrated itspractice in international trade and related corporate matters, primarily for Fortune 500-type companies operating in a broad range of industries, and he is familiarwith financial statements and domestic and trans-border transactions.Audit CommitteeJames L. Nelson, William A. Leidesdorf and Jack G. Wasserman serve on our audit committee. We believe that the audit committee members are“independent” within the meaning of Rule 5605(a)(2) of the NASDAQ Listing Rules of the NASDAQ Stock Market ("NASDAQ"). A copy of the audit committeecharter is available on our website at www.ielp.com/governance.cfm or may be obtained without charge by writing to Icahn Enterprises L.P., 767 Fifth Avenue,Suite 4700, New York, NY 10153, Attention: Investor Relations.Our audit committee has twelve regularly scheduled meetings each year, and numerous other meetings when circumstances require. Eight meetings are heldin connection (a) with the audit committee's review, together with our senior management, the senior management of our subsidiaries, and representatives of ourindependent auditor, of our quarterly reports on Form 10-Q and our annual report on Form 10-K and (b) telephone conferences with the senior management of eachof our subsidiaries. Four meetings are held with our Chief Financial Officer, Chief Accounting Officer, and Chief Auditor, who report to the audit committee oncompany-wide developing financial and related matters. At the time of the annual report on Form 10-K, the audit committee meets in executive session, and alsomeets separately with our independent auditor and our senior management. Our audit committee holds two annual executive sessions. When necessary, our auditcommittee holds informal meetings, meets with its independent counsel, and, when appropriate, with independent financial advisers.The functions of our audit committee include, but are not limited to: (1) the review of our financial and accounting policies and procedures, includingoversight; (2) the selection of our independent auditor and the determination of the auditor's fees for audit services; (3) the pre-approval of any non-audit servicesand the fees to be paid to our independent auditor; (4) the obtaining, at least annually, of a report from our independent auditor of the adequacy of our internalcontrols over financial reporting; (5) the review of the results of all audits of our books and records performed by the independent auditor for, among other reasons,to determine the integrity of our financial statements; (6) discussing our policies with respect to risk assessment and risk management, and reporting such policiesto the full board of directors; (7) the review of significant earnings press releases prior to release with respect to the types of information disclosed and the mannerin which the information is disclosed; and (8) the review and approval of related party transactions and conflicts of interest in accordance with the terms of ourpartnership agreement. Our audit committee is empowered, in its discretion, to engage such advisors as it might deem necessary, including legal counsel andfinancial and accounting advisors.Our board of directors has determined that we do not have an “audit committee financial expert,” within the meaning of Item 407(d)(5) of Regulation S-K,serving on our audit committee. We believe that each member of the audit committee is236financially literate and possesses sufficient experience, both professionally and by virtue of his service as a director and member of the audit committee of IcahnEnterprises GP, to be fully capable of discharging his duties as a member of our audit committee. However, none of the members of our audit committee has aprofessional background in accounting or preparing, auditing, analyzing or evaluating financial statements. If our audit committee determines that it requiresadditional financial expertise, it will either engage professional advisors or seek to recruit a member who would qualify as an “audit committee financial expert”within the meaning of Item 407(d)(5) of Regulation S-K.Jack G. Wasserman has been chosen to preside and currently presides at executive sessions of our non-management directors. Interested parties may directlycommunicate with the presiding director of the audit committee or with the non-management directors of the audit committee as a group by directing all inquiriesto our ethics hotline at (877) 888-0002.Audit Committee ReportThe audit committee has confirmed that: (1) the audit committee reviewed and discussed our 2015 audited financial statements with management; (2) theaudit committee has discussed with our independent auditors the matters required to be discussed by SAS 61 (Codification of Statements on Auditing Standards,AU§380); (3) the audit committee has received the written disclosures and the letter from the independent accountants required by Independence Standards BoardStandard No. 1; and (4) based on the review and discussions referred to in clauses (1), (2) and (3) above, the audit committee recommended to the board ofdirectors that our 2015 audited financial statements be included in this Report.This report is provided by the following independent directors, who constitute the audit committee:William A. LeidesdorfJames L. NelsonJack G. WassermanCode of Business Conduct and EthicsIcahn Enterprises GP's board of directors has adopted a Code of Business Conduct and Ethics applicable to all directors, officers and employees,including our principal executive officer, principal financial officer and principal accounting officer. A copy of the Code of Business Conduct and Ethics isavailable on our website at www.ielp.com/governance.cfm and may be obtained without charge by writing to Icahn Enterprises L.P., 767 Fifth Avenue, Suite 4700,New York, NY 10153, Attention: Investor Relations.NASDAQ Corporate Governance CompliancePursuant to Rule 5615(a)(4)(J) of the NASDAQ corporate governance requirements, in the event that an executive officer of Icahn Enterprises' or IcahnEnterprises Holdings', or a person performing an equivalent role, becomes aware of any noncompliance with NASDAQ's corporate governance requirements, he orshe is required to provide prompt notice to NASDAQ of such noncompliance. As of February 29, 2016 , we believe that we are compliant with NASDAQ'scorporate governance requirements.Board Leadership StructureOur leadership structure includes the positions of chairman of the board ("Chairman") and Chief Executive Officer. Mr. Icahn serves as our Chairman andMr. Cozza serves as our Chief Executive Officer.The Chairman is responsible for organizing the board of directors and setting its agenda and priorities. The Chairman does not participate in the day-to-daybusiness operations of our business segments, other than our Investment segment. The Chief Executive Officer is accountable directly to the board of directors,including the Chairman, and has day-to-day responsibility, in consultation with our Chairman, for general oversight of our business segments. Our businesssegments are operated through subsidiaries with their own management teams, including boards of directors, responsible for the day-to-day operations of thosebusinesses. We believe that our leadership structure is appropriate for our holding company structure as it enhances our corporate governance and companyoversight by separating responsibilities between the Chief Executive Officer and Chairman.Board of Directors Role in Risk OversightIn connection with its oversight responsibilities the Board, including the Audit Committee, periodically reviews the significant risks that we face. These risksinclude strategic, financial, operational and compliance risks. The Board administers its risk oversight responsibilities through its Chief Executive Officer and itsChief Financial Officer, who, together with our chief auditor and management representatives of each of our operating subsidiaries, review and assess theoperations of the businesses as well as each respective management's identification, assessment and mitigation of the material risks affecting our operations.237Section 16(a) Beneficial Ownership Reporting ComplianceSection 16(a) of the Securities Exchange Act of 1934, as amended, requires our executive officers and directors and persons who own more than 10% of aregistered class of our equity securities, to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and Annual Reportsconcerning their ownership, of common stock and other of our equity securities on Forms 3, 4, and 5, respectively. Executive officers, directors and greater than10% stockholders are required by SEC regulations to furnish us with copies of all Section 16(a) reports they file. Based solely on information available to us inpublic filings, we believe that all reports required by Section 16(a) were timely filed other than two late Form 4 filings by Carl C. Icahn reporting a total of 17transactions.Item 11. Executive Compensation.Company Structure and Reporting RequirementsThe Company is a master limited partnership ("MLP") and is not subject to the proxy solicitation rules as required by section 14A of the Exchange Act or§240.14a-20. Furthermore, because the Company has not ever been a TARP recipient, as defined in section 111(a)(3) of the Emergency Economic StabilizationAct of 2008, it is not subject to §240.14a-20. As a MLP, pursuant to the Company's partnership agreement, the general partner, Icahn Enterprises G.P. Inc.(the"GP"), has exclusive management powers over the business and affairs of the Company. That is, the GP’s stockholders have the right to elect members of the GP'sboard of directors, who, in turn, elect the officers of the Company. Accordingly, the Company does not hold annual meetings to elect its directors.Compensation Discussion and AnalysisThe following section provides an overview and analysis of our compensation programs, the compensation decisions we have made under those programs,and the factors we considered in making those decisions. Later in this section, under the heading “Additional Information Regarding Executive Compensation,” weprovide a table containing specific information about the compensation earned by the following individuals in 2015, whom we refer to as our named executiveofficers:•Carl C. Icahn, Chairman of the Board (1) •Keith Cozza, President and Chief Executive Officer (2) •SungHwan Cho, Chief Financial Officer (3) •Peter Reck, Chief Accounting Officer(1) In addition, Mr. Icahn serves as Chief Executive Officer of our subsidiary, Icahn Capital and of the General Partners.(2) In addition, Mr. Cozza also serves as the Chief Operating Officer of Icahn Capital, serves as director of Icahn Enterprises and Icahn Enterprises Holdings and holds officer and/ordirector positions at certain of our other subsidiaries.(3) In addition, Mr. Cho serves as a director of Icahn Enterprises and Icahn Enterprises Holdings.The discussion below is intended to help you understand the detailed information provided in the table and put that information into context within ouroverall compensation program.Overview of Compensation ProgramThroughout this narrative discussion and in the accompanying table, we refer to our named executive officers. The key compensation package provided toour named executive officers consists of (i) base salary, (ii) incentive compensation and (iii) other benefits. The key compensation provided to our namedexecutive officers for 2015 consisted of salary and bonuses. See “Additional Information Regarding Executive Compensation - Summary Compensation Table” forthe compensation received by each of our named executive officers for 2015. Executive compensation levels and bonuses are established based upon therecommendation of our chairman, which are discussed with members of the board. The board of directors does not delegate the authority to establish executiveofficer compensation to any other person and has not retained any compensation consultants to determine or recommend the amount or form of executive anddirector compensation.Compensation Philosophy and ObjectivesOur executive compensation philosophy is designed to support our key business objectives while maximizing value to our unitholders. The objectives of ourcompensation structure are to attract and retain valuable employees, assure fair and internally equitable pay levels and provide a mix of base salary and variablebonuses that provides motivation and rewards performance. At the same time, we seek to optimize and manage compensation costs.The primary components of our executive compensation are base salary and, except as otherwise indicated, annual bonus, payable in cash. For furtherdescriptions, see “Additional Information Regarding Executive Compensation - Employment Agreements.” Base salary is paid for ongoing performancethroughout the year and is determined based on job function and238each executive's contribution to our performance and achievement of our overall business objectives. Our annual bonuses are intended to reward particularachievement during the year, motivate future performance and attract and retain highly qualified key employees.Determination of Appropriate Pay LevelsWe compete with many other companies for experienced and talented executives. Market information in general regarding pay practices at peer companies(as provided in the public reports filed by such companies with the SEC may be reviewed and considered in assessing the reasonableness of compensation andensuring that compensation levels remain competitive in the marketplace. For a further description of the employment agreements with our executives, see“Additional Information Regarding Executive Compensation - Employment Agreements.”Each element of compensation is reviewed so that the overall compensation package will attract, motivate and retain our key employees, including our namedexecutive officers, by rewarding superior performance. The following factors are considered to determine the amount of compensation paid to each executiveofficer:•overall job performance, including performance against corporate and individual objectives;•job responsibilities, including unique skills necessary to support our long-term performance, including that of our subsidiaries; and•teamwork, both contributions as a member of the executive management team and fostering an environment of personal and professional growth for theentire work force.Determination of BonusesThe Company believes that bonuses are an integral component of compensation that is an important way to motivate and reward performance of ouremployees. The Company does not have a formula or pre-established policy for determining either salary levels or bonuses; bonuses are discretionary. In addition,in order that we remain competitive in the marketplace, we may review market information regarding pay practices at peer companies in determining bonuses.Generally, bonuses are determined by various factors, including, but not limited to, the achievement of financial goals and other Company goals that aredetermined to be critical to the success of the Company, overall job performance, including performance against corporate and individual objectives, jobresponsibilities and teamwork for each individual.Allocation of CompensationThere is no pre-established policy or target for the allocation of compensation, other than certain employment agreements with certain named executiveofficers and, in the case of Mr. Ninivaggi, the Option Agreements (which, as discussed, elsewhere were terminated, rendered null and void and are canceled andshall have no further force or effect.) As we are a limited partnership and a controlled entity, under the NASDAQ listing rules, our status as a limited partnershipexempts us from certain corporate governance rules, including the requirement to maintain a compensation committee. In 2015, the total compensation granted tonamed executive officers was in the form of cash compensation.Compensation ComponentsBase SalaryBase salaries for executive officers are determined based on job performance, job responsibilities and teamwork.Mr. Icahn is currently an at will employee serving as Chairman of the Board of Icahn Enterprises GP and as Chairman and Chief Executive Officer of IcahnCapital and Chief Executive Officer of the General Partners for which he receives an annual base salary of $1 per annum.Generally, total compensation is used in determining the amount of contributions permitted under our 401(k) Plan. In addition, base salary may includeaccrued but unused paid time off ("PTO") days that have been paid in accordance with the Company's PTO policy.See “Additional Information Regarding Executive Compensation - Summary Compensation Table” for detailed information on the compensation received byeach of our named executive officers for 2015.BonusFor 2015, Messrs. Cozza, Cho and Reck received bonuses of $2,500,000, $1,200,000 and $215,000, respectively.401(k) Plan and Other BenefitsFor 2015, Messrs. Cozza, Cho and Reck , were our only named executive officers participating in our qualified Icahn Enterprises Holdings 401(k) Plan, or the401(k) Plan, and thus received matching contributions for 2015. The matching contributions for the respective named executive officer in 2015 are disclosed in ourSummary Compensation Table under “All239Other Compensation” and in the related footnote. Mr. Icahn was our only named executive who did not participate in the 401(k) Plan for 2015. All of our namedexecutive officers are entitled to receive medical, dental and paid time-off benefits that are offered to all of our employees and are designed to enable us to attractand retain our workforce in a competitive environment. Our 401(k) Plan helps employees save and prepare financially for retirement. Health and paid time-offbenefits help ensure that we have a productive and focused workforce.Our qualified 401(k) Plan allows employees to contribute up to 50% of their eligible compensation, up to the limits imposed by the Code on a pre-tax basis.We currently match, within prescribed limits, 50% of eligible employees' contributions up to 6.25% of their eligible compensation. Participants choose to investtheir account balances from an array of investment options as selected by plan fiduciaries from time to time. The 401(k) Plan provides distributions in a lump sum.Under certain circumstances, loans and withdrawals are permitted.PerquisitesThe total value of all perquisites and personal benefits (exclusive of 401(k) matching contributions) provided to each of our named executive officers for2015, 2014 and 2013 was less than $10,000 per person, except for Mr. Icahn, for whom perquisites and other benefits are identified in the Summary CompensationTable under the “All Other Compensation” column and in related footnotes.Compensation Committee ReportAs stated above, pursuant to exemptions from the NASDAQ listing rules, the board of directors is not required to have, and does not have, a standingcompensation committee. The board of directors has reviewed and discussed the Compensation Disclosure and Analysis required by Item 402(b) of Regulation S-K with management. Based on that review and discussion, the board of directors recommended that the Compensation Disclosure and Analysis be included in thisReport.This report is provided by the board of directors:Carl C. IcahnSung Hwan ChoKeith CozzaWilliam A. LeidesdorfJames L. NelsonJack G. WassermanCompensation Committee Interlocks and Insider ParticipationDuring 2015, our entire board of directors, including Mr. Icahn, participated in deliberations concerning executive compensation. During 2015, none of ourexecutive officers served on the compensation committee (or equivalent), or the board of directors, of another entity whose executive officer(s) served on our boardof directors.Additional Information Regarding Executive CompensationThe following table sets forth information in respect of the compensation earned for services to us and/or our subsidiaries by each of our named executiveofficers for 2015.240Summary Compensation Table Annual Compensation (1)Name andPrincipal Position Year Salary($) Bonus($) All OtherCompensation($) Total($)Carl C. Icahn (2)Chairman of the Board 2015 1 — 137,227(3) 137,228 2014 1 — 105,532(3) 105,533 2013 1 — 195,284(3) 195,285 Keith Cozza (4)President and Chief Executive Officer 2015 1,569,498 2,500,000 10,466(3) 4,079,964 2014 1,505,567 2,000,000 9,284(3) 3,514,851 2013 1,019,240 2,000,000 17,560(3) 3,036,800 SungHwan Cho (5)Chief Financial Officer 2015 649,267 1,200,000 10,562(3) 1,859,829 2014 513,466 1,000,000 9,326(3) 1,522,792 2013 386,542 725,000 17,443(3) 1,128,985 Peter ReckChief Accounting Officer 2015 301,154 215,000 9,801(3) 525,955 2014 280,000 210,000 8,514(3) 498,514 2013 260,000 200,000 11,279(3) 471,279 (1)Pursuant to applicable regulations, certain columns of the Summary Compensation Table have been omitted, as there has been no compensation awarded to,earned by or paid to any of the named executive officers by us, any of our subsidiaries or by Icahn Enterprises GP, which was subsequently reimbursed by us,required to be reported in those columns.(2)The salary indicated above represents compensation paid to Mr. Icahn in each of 2015, 2014, and 2013 for his services as Chief Executive Officer of oursubsidiary, Icahn Capital, and of the General Partners pursuant. Mr. Icahn is currently an at will employee serving as Chairman of the Board of IcahnEnterprises GP and as Chairman and Chief Executive Officer of Icahn Capital and Chief Executive Officer of the General Partners for which he currentlyreceives an annual base salary of $1 per annum. Mr. Icahn does not receive director fees from us.(3)Represents other compensation paid to the following named executive officers: (i) Carl C. Icahn, $18,719, $17,559 and $14,644 , in medical and dentalbenefits for 2015, 2014 and 2013, respectively; $955 in life insurance paid by us for 2015 and $173 for both 2014 and 2013; and in his capacity as theChairman of the board of directors of Federal-Mogul, $118,508, $87,800 and $180,640 representing the incremental cost of Mr. Icahn's personal use ofFederal-Mogul's corporate aircraft for 2015, 2014 and 2013, respectively. Mr. Icahn received no fees or compensation from Federal-Mogul for 2015, 2014 or2013 other than the use of the corporate aircraft as discussed above. The calculation of incremental cost for the personal use of Federal-Mogul's corporateaircraft includes the variable costs incurred as a result of personal flight activity, which are comprised of a portion of ongoing maintenance and repairs, aircraftfuel, airport fees, catering, and fees and travel expenses for the flight crew. The use of the aircraft for personal use by Mr. Icahn was approved by the board ofdirectors and the Compensation Committee of Federal-Mogul; (ii) Mr. Cho, $8,221, $8,167, and $8,008 in matching contributions under our 401(k) Plan for2015, 2014 and 2013, respectively; $1,386, $986 and $9,262 in medical and dental benefits paid by us for 2015, 2014 and 2013, respectively; and $955 in lifeinsurance premiums paid by us for 2015 and $173 for both 2014 and 2013; (iii) Mr. Reck, $8,342, $7,977 and $7,813 in matching contributions under our401(k) Plan for 2015, 2014 and 2013, respectively; $764, $364 and $3,293 in medical and dental benefits paid by us for 2015, 2014 and 2013, respectively;and $695 in life insurance premiums paid by us for 2015 and $173 for both 2014 and 2013; (iv) Mr. Cozza, $8,125 in matching contributions under our 401(k)Plan for each of 2015, 2014 and 2013; $1,386, $986 and $9,262 in medical and dental benefits paid by us for 2015, 2014 and 2013, respectively; $955 in lifeinsurance premiums paid by us for 2015 and $173 for both 2014 and 2013. In each of 2015, 2014 and 2013, to the extent that a named executive officerparticipated in our 401(k) Plan, we made a matching contribution to his individual 401(k) Plan account in the amount of one-half (1/2) of up to the first six andone-quarter (6.25%) percent of eligible compensation (within prescribed limits) contributed by the employee. Mr. Icahn did not participate in the 401(k) planduring 2015, 2014 or 2013 and thus did not receive any matching contributions for those fiscal years.241(4) Mr. Cozza served as Executive Vice President of Icahn Enterprises and Icahn Enterprises Holdings from February 20, 2013 through February 4, 2014. EffectiveFebruary 5, 2014, Mr. Cozza was appointed as President and Chief Executive Officer of Icahn Enterprises and Icahn Enterprises Holdings. In addition, Mr.Cozza serves as the Chief Operating Officer of Icahn Capital and holds officer and/or director positions at certain of our other subsidiaries. During 2015, Mr.Cozza received a salary of $1,569,498 and a bonus of $2,500,000, which was determined based on various factors, including, but not limited to, overall jobperformance, including performance against corporate and individual objectives, job responsibilities and teamwork. The increase in salary for Mr. Cozza in2015 relative to 2014 primarily reflects his individual job performance and increasing responsibilities in regards to each of our operating segments. Inparticular, Mr. Cozza played a key role in certain acquisitions related to our Automotive segment as well as our acquisition of Ferrous Resources Limited,representing our Mining segment.(5) Mr. Cho served as Chief Financial Officer of Icahn Enterprises and Icahn Enterprises Holdings since March 16, 2012. During 2015, Mr. Cho received a salaryof $649,267 and a bonus of $1,200,000, which was determined based on various factors, including, but not limited to overall job performance, includingperformance against corporate and individual objectives, job responsibilities and teamwork. The increase in salary for Mr. Cho in 2015 relative to 2014 wasprimarily due to his individual job performance and increasing responsibilities in regards to each of our operating segments. In particular, Mr. Cho played akey role in certain acquisitions related to our Automotive segment as well as our acquisition of Ferrous Resources Limited, representing our Mining segment.Each of our executive officers may perform services for affiliates of Mr. Icahn for which we receive reimbursement. See Item 13, “Certain Relationships andRelated Transactions, and Director Independence.”There are no family relationships between or among any of our directors and/or executive officers.Employment AgreementsWe currently do not have any employment agreements with our named executives.Stock Award, Option and Non-Equity Incentive PlansWe do not have any stock award, option or non-equity incentive plans with respect to our named executives.Potential Payments Upon Termination or Change in ControlWe do not have any employments agreements pursuant to which any of our employees would have received potential payments upon termination or change incontrol as of December 31, 2015 .Director CompensationThe following table provides compensation information for our directors in 2015, except for Messrs. Icahn, Cho and Cozza. Compensation received byMessrs. Icahn, Cho and Cozza is included in the Summary Compensation Table. Messrs. Icahn, Cho and Cozza did not receive compensation for serving asdirector of the Icahn Enterprises and Icahn Enterprises Holdings.Name Fees Earned orPaid in Cash($) All OtherCompensation($) Total($)William A. Leidesdorf 50,000 — 50,000James L. Nelson 50,000 — 50,000Jack G. Wasserman 60,000 — 60,000Each director will hold office until his successor is elected and qualified. During 2015, Messrs. Wasserman, Leidesdorf and Nelson each received $50,000 inrespect of their services rendered as members of our board of directors. In addition, Mr. Wasserman received an additional $10,000 for servicing as the Company'schairmen of the audit committee.Directors receive only cash compensation, if applicable, and currently are not granted any options, units or other equity-based awards.242Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Security Holder Matters.As of February 29, 2016 , affiliates of Mr. Icahn, owned 117,033,818 of Icahn Enterprises' depositary units, or approximately 89.0% of Icahn Enterprises'outstanding depositary units. In accordance with the listing rules of NASDAQ, Icahn Enterprises' status as a limited partnership affords Icahn Enterprises anexemption from certain corporate governance requirements which includes an exemption from the requirement to have compensation and nominating committeesconsisting entirely of independent directors. Icahn Enterprises GP's board of directors presently consists of three independent directors and the audit committeeconsists entirely of independent directors.The affirmative vote of unitholders holding more than 75% of the total number of all depositary units then outstanding, including depositary units held byIcahn Enterprises GP and its affiliates, is required to remove Icahn Enterprises GP. Thus, since Mr. Icahn, through affiliates, currently holds approximately 89.0%of Icahn Enterprises' outstanding depositary units, Icahn Enterprises GP will not be able to be removed pursuant to the terms of our partnership agreement withoutMr. Icahn's consent. Moreover, under the partnership agreement, the affirmative vote of Icahn Enterprises GP and unitholders owning more than 50% of the totalnumber of all outstanding depositary units then held by unitholders, including affiliates of Mr. Icahn, is required to approve, among other things, selling orotherwise disposing of all or substantially all of our assets in a single sale or in a related series of multiple sales, our dissolution or electing to continue IcahnEnterprises in certain instances, electing a successor general partner, making certain amendments to the partnership agreement or causing us, in our capacity as solelimited partner of Icahn Enterprises Holdings, to consent to certain proposals submitted for the approval of the limited partners of Icahn Enterprises Holdings.Accordingly, as affiliates of Mr. Icahn hold in excess of 50% of the depositary units outstanding, Mr. Icahn, through affiliates, will have effective control over suchapproval rights.The following table provides information, as of February 29, 2016 , as to the beneficial ownership of the depositary units for each director of IcahnEnterprises GP and all directors and executive officers of Icahn Enterprises GP, as a group. Except for Mr. Icahn, none of our named executive officers or directorsbeneficially owns more than 5% of Icahn Enterprises' depositary units.Name of Beneficial Owner Beneficial Ownership ofIcahn Enterprises'Depositary Units Percent of ClassCarl C. Icahn 117,033,818(a) (b) 89.0%Keith Cozza 2,000 *SungHwan Cho 1,100 *Jack G. Wasserman 800 *James L. Nelson 1,600 *Peter Reck — —%William A. Leidesdorf — —%All Directors and Executive Officers as a Group (seven persons) 117,039,318 89.0%* Less than 1% of total outstanding depositary units of Icahn Enterprises.(a) The foregoing is exclusive of a 1.99% ownership interest which Icahn Enterprises GP holds by virtue of its 1% general partner interest in each of us and IcahnEnterprises Holdings.(b) The following footnotes describe Mr. Icahn's beneficial ownership of Icahn Enterprises' depositary units:243(1)Barberry Corp. ("Barberry") beneficially owns 3,814,570 Depositary Units. Carl C. Icahn beneficially owns 100% of Barberry. Pursuant to Rule 16a-1(a)(2) under the ExchangeAct, Mr. Icahn (by virtue of his relationship to Barberry) may be deemed to indirectly beneficially own the Depositary Units which Barberry owns. Mr. Icahn disclaimsbeneficial ownership of such Depositary Units except to the extent of his pecuniary interest therein.(2)CCI Offshore LLC ("CCI Offshore") beneficially owns 2,492,684 Depositary Units. Barberry is the sole member of CCI Offshore. Carl C. Icahn beneficially owns 100% ofBarberry. Pursuant to Rule 16a-1(a)(2) under the Exchange Act, each of Mr. Icahn and Barberry (by virtue of their relationships to CCI Offshore) may be deemed to indirectlybeneficially own the Depositary Units which CCI Offshore owns. Each of Mr. Icahn and Barberry disclaims beneficial ownership of such Depositary Units except to the extentof their pecuniary interest therein.(3)CCI Onshore LLC ("CCI Onshore") beneficially owns 19,744,774 Depositary Units. High Coast Limited Partnership ("High Coast") is the sole member of CCI Onshore. LittleMeadow Corp. ("Little Meadow") is the general partner of High Coast. Carl C. Icahn beneficially owns 100% of Little Meadow. Pursuant to Rule 16a-1(a)(2) under theExchange Act, each of Mr. Icahn, Little Meadow and High Coast (by virtue of their relationships to CCI Onshore) may be deemed to indirectly beneficially own the DepositaryUnits which CCI Onshore owns. Each of Mr. Icahn, Little Meadow and High Coast disclaims beneficial ownership of such Depositary Units except to the extent of theirpecuniary interest therein.(4)Gascon Partners ("Gascon") beneficially owns 17,368,681 Depositary Units. Little Meadow is the managing general partner of Gascon. Carl C. Icahn beneficially owns 100% ofLittle Meadow. Pursuant to Rule 16a-1(a)(2) under the Exchange Act, each of Mr. Icahn and Little Meadow (by virtue of their relationships to Gascon) may be deemed toindirectly beneficially own the Depositary Units which Gascon owns. Each of Mr. Icahn and Little Meadow disclaims beneficial ownership of such Depositary Units except tothe extent of their pecuniary interest therein.(5)High Coast Limited Partnership ("High Coast") beneficially owns 45,282,039 Depositary Units. Little Meadow is the general partner of High Coast. Carl C. Icahn beneficiallyowns 100% of Little Meadow. Pursuant to Rule 16a-1(a)(2) under the Exchange Act, each of Mr. Icahn and Little Meadow (by virtue of their relationships to High Coast) maybe deemed to indirectly beneficially own the Depositary Units which High Coast owns. Each of Mr. Icahn and Little Meadow disclaims beneficial ownership of such DepositaryUnits except to the extent of their pecuniary interest therein.(6)Highcrest Investors LLC ("Highcrest") beneficially owns 13,490,411 Depositary Units. Starfire Holding Corporation ("Starfire") beneficially owns 99.5% of Highcrest. Carl C.Icahn beneficially owns 100% of Starfire. Pursuant to Rule 16a-1(a)(2) under the Exchange Act, each of Mr. Icahn and Starfire (by virtue of their relationships to Highcrest) maybe deemed to indirectly beneficially own the Depositary Units which Highcrest owns. Each of Mr. Icahn and Starfire disclaims beneficial ownership of such Depositary Unitsexcept to the extent of their pecuniary interest therein.(7)Tramore LLC ("Tramore") beneficially owns 8,830,603 Depositary Units. Carl C. Icahn beneficially owns 100% of Tramore. Pursuant to Rule 16a-1(a)(2) under the ExchangeAct, Mr. Icahn (by virtue of his relationship to Tramore) may be deemed to indirectly beneficially own the Depositary Units which Tramore owns. Mr. Icahn disclaims beneficialownership of such Depositary Units except to the extent of his pecuniary interest therein.(8)Modal LLC ("Modal") beneficially owns 778,470 Depositary Units. Carl C. Icahn beneficially owns 100% of Modal. Pursuant to Rule 16a-1(a)(2) under the Exchange Act, Mr.Icahn (by virtue of his relationship to Modal) may be deemed to indirectly beneficially own the Depositary Units which Modal owns. Mr. Icahn disclaims beneficial ownershipof such Depositary Units except to the extent of his pecuniary interest therein.(9)Thornwood Associates Limited Partnership ("Thornwood") beneficially owns 5,231,586 Depositary Units. Barberry is the general partner of Thornwood. Carl C. Icahnbeneficially owns 100% of Barberry. Pursuant to Rule 16a-1(a)(2) under the Exchange Act, each of Mr. Icahn and Barberry (by virtue of their relationships to Thornwood) maybe deemed to indirectly beneficially own the Depositary Units which Thornwood owns. Each of Mr. Icahn and Barberry disclaims beneficial ownership of such Depositary Unitsexcept to the extent of their pecuniary interest therein.(10)Does not include 12,000 Depositary Units owned by Gail Golden, the wife of Mr. Icahn. Mr. Icahn, by virtue of his relationship to Ms. Golden, may be deemed to beneficiallyown such Depositary Units. Mr. Icahn disclaims beneficial ownership of such Depositary Units for all purposes.Item 13. Certain Relationships and Related Transactions, and Director Independence.Related Party Transaction PolicyOur amended and restated agreement of limited partnership expressly permits us to enter into transactions with our general partner or any of its affiliates,including, without limitation, buying or selling properties from or to our general partner and any of its affiliates and borrowing and lending money from or to ourgeneral partner and any of its affiliates, subject to the limitations contained in our partnership agreement and the Delaware Revised Uniform Limited PartnershipAct. The indentures governing our indebtedness contain certain covenants applicable to transactions with affiliates.Related Party Transactions with Our General Partner and Its AffiliatesMr. Icahn, in his capacity as majority unitholder, will not receive any additional benefit with respect to distributions and allocations of profits and losses notshared on a pro rata basis by all other unitholders. In addition, Mr. Icahn has confirmed to us that neither he nor any of his affiliates will receive any fees from us inconsideration for services rendered in connection with non-real estate related investments by us other than compensation pursuant to his employment agreementand as otherwise disclosed herein. We have and in the future may determine to make investments in entities in which Mr. Icahn or his affiliates also haveinvestments. We may enter into other transactions with Mr. Icahn and his affiliates, including, without limitation, buying and selling assets from or to affiliates ofMr. Icahn and participating in joint venture investments in assets with affiliates of Mr. Icahn, whether real estate or non-real estate related. Furthermore, it shouldbe noted that our partnership agreement provides that Icahn Enterprises GP and its affiliates are permitted to have other business interests and may engage in otherbusiness ventures of any nature whatsoever, and may compete directly or indirectly with our business. Mr. Icahn and his affiliates currently invest in assets thatmay be similar to those in which we may invest and Mr. Icahn and his affiliates intend to continue to do so. Pursuant to the partnership agreement, however, wewill not have any right to participate therein or receive or share in any income or profits derived therefrom.On February 11, 2013, we announced that the board of directors of our general partner approved a modification to our distribution policy to provide for anincrease in the annual distribution from $1.40, comprised of $0.40 in cash and $1.00 in244depositary units, to $4.00 per depositary unit, payable in either cash or additional depositary units, at the election of each depositary unitholder. On May 29, 2013,the board of directors of our general partner further modified our distribution policy to increase our annual distribution from $4.00 per depositary unit to $5.00 perdepositary unit. Further, on March 3, 2014, the board of directors of our general partner announced an increase in our annualized distribution from $5.00 perdepositary unit to $6.00 per depositary unit.During 2015, Mr. Icahn and his affiliates elected to receive a majority of their proportionate share of these distributions in depositary units. Mr. Icahn and hisaffiliates owned approximately 89.0% of Icahn Enterprises' outstanding depositary units as of December 31, 2015 . Mr. Icahn and his affiliates have indicated thatit is their present intention to elect to receive the increase in Icahn Enterprises’ cash distribution in additional depositary units for the foreseeable future.During 2015, the board of directors of our general partner declared four quarterly distributions aggregating $6.00 per depositary unit. Depositary unitholderswere given the option to make an election to receive the distributions either cash or additional depositary units; if a holder did not make an election, it wasautomatically deemed to have elected to receive the distributions in cash. We distributed an aggregate of 8,377,645 of depositary units to those Depositaryunitholders who elected to receive such distributions in depositary units.On February 23, 2016 , the board of directors of the general partner of Icahn Enterprises declared a quarterly distribution in the amount of $1.50 perdepositary unit, which will be paid on or about April 12, 2016 to depositary unitholders of record at the close of business on March 7, 2016 . Depositaryunitholders will have until March, 31 2016 to make an election to receive either cash or additional depositary units; if a holder does not make an election, it willautomatically be deemed to have elected to receive the dividend in cash. Depositary unitholders who elect to receive additional depositary units will receive unitsvalued at the volume weighted average trading price of the units on NASDAQ during the 5 consecutive trading days ending April 7, 2016 . No fractionaldepositary units will be issued pursuant to the distribution payment. Icahn Enterprises will make a cash payment in lieu of issuing fractional depositary units to anyholders electing to receive depositary units. Any holders that would only be eligible to receive a fraction of a depositary unit based on the above calculation willreceive a cash payment.In 2015, Icahn Enterprises GP was allocated $24 million of our net loss as a result of its combined 1.99% general partner interests in us and Icahn EnterprisesHoldings.Pursuant to registration rights agreements, Mr. Icahn has certain registration rights with regard to the depositary units beneficially owned by him.Investments in the Investments FundsWe may, on occasion, invest in securities in which entities affiliated with Mr. Icahn are also investing. Additionally, Mr. Icahn and his affiliated entities mayalso invest in securities in which Icahn Enterprises and its consolidated subsidiaries invest. Mr. Icahn and his affiliates (excluding Icahn Enterprises and IcahnEnterprises Holdings), make investments in the Investment Funds. During 2015, certain affiliates (excluding Icahn Enterprises and Icahn Enterprises Holdings) ofMr. Icahn invested $276 million in the Investment Funds. Subsequent to December 31, 2015 , certain affiliates (excluding Icahn Enterprises and Icahn EnterprisesHoldings) of Mr. Icahn invested $490 million in the Investment Funds. During the year ended December 31, 2015 , certain affiliates of Mr. Icahn had redemptionsof $36 million from the Investment Funds. As of December 31, 2015 , the total of Mr. Icahn and affiliates' interests in the Investment Funds was approximately$4.1 billion .Other Related Party TransactionsOn April 1, 2010, Icahn Enterprises and Icahn Capital, a wholly owned indirect subsidiary of Icahn Enterprises, entered into a co-manager agreement (the"Co-Manager Agreement") with Brett Icahn, the son of Carl C. Icahn. At that time Icahn Capital also entered into a co-manager agreement on the same terms withanother individual. Under the Co-Manager Agreement, Brett Icahn serves as a co-portfolio manager of the Sargon Portfolio, a designated portfolio of assets withinthe various private investment funds comprising Icahn Enterprises' Investment segment, including the Onshore Fund, Master Fund I, Master Fund II and MasterFund III, subject to the supervision and control of Icahn Capital and Carl Icahn.Effective January 1, 2014, Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP were merged with and into Icahn Partners. As a result, theInvestment Funds now consist solely of Icahn Partners LP and Icahn Partners Master Fund LP.On July 24, 2012, (i) Icahn Enterprises and Icahn Capital entered into an amendment to the Co-Manager Agreement with Brett Icahn (the “Amended IcahnEnterprises Co-Manager Agreement”), and (ii) High River Limited Partnership (''High River''), an affiliate of Carl C. Icahn, entered into a new co-manageragreement with Brett Icahn (such co-manager agreements, collectively the ''High River Co-Manager Agreement,'' and together with the Amended Icahn EnterprisesCo-Manager Agreement, the “2012 Co-Manager Agreement”). On July 24, 2012, similar agreements were entered into with another individual. The 2012 Co-Manager Agreement is effective as of August 1, 2012. Pursuant to the 2012 Co-Manager Agreement, subject to the supervision and control of Icahn Capital andCarl Icahn, the Investment Funds and High River would make245available up to an aggregate of $3 billion (to be provided approximately 80% by the Investment Funds and 20% by High River) for management within the SargonPortfolio over a four-year term and Brett Icahn would be entitled, subject to the terms of the 2012 Co-Manager Agreement, to a one-time lump sum payment at theend of such four-year period, equal to 7.5% of the profit generated by the portfolio over a hurdle rate of return, minus certain costs (payable by each of theInvestment Funds and High River based upon their respective profits).On October 22, 2013, Icahn Enterprises and Icahn Capital entered into an amendment (the “Co-Manager Amendment”) to the Amended and Restated Co-Manager Agreement made as of August 1, 2012 by and between Icahn Enterprises, Icahn Capital and each of David Schechter and Brett Icahn (the “2013 Co-Manager Agreement”).The Co-Manager Amendment modified certain provisions of the 2012 Co-Manager Agreement solely as they related to the shares of common stock ofNetflix, Inc., a Delaware corporation, held within the New Sargon Portfolio (the “Designated Shares”). Pursuant to the 2013 Co-Manager Amendment, up to 85%of the Designated Shares may be sold by Icahn Enterprises and Icahn Capital without the consent of the Co-Managers. Following the sale of any of the DesignatedShares without the consent of the Co-Managers, Icahn Enterprises and Icahn Capital must make available to the New Sargon Portfolio an amount in cash or cashequivalents equal to the proceeds received from such sale. Further, pursuant to the Amendment, the shares sold without consent of the Co-Managers will bedeemed to remain in the New Sargon Portfolio on a notional basis for the purposes of calculating the market value of the New Sargon Portfolio in connection withthe determination of gain in the New Sargon Portfolio.The balance due to Brett Icahn by Icahn Enterprises and Icahn Capital at December 31, 2015 , pursuant to the terms of the Co-Manager Agreement, 2012 Co-Manager Agreement and 2013 Co-Manager Agreement, would have been approximately $256 million if he had been 100% vested as of December 31, 2015 . For2015, amounts due to Brett Icahn under these agreements by the Investment Funds increased by approximately $73 million.Icahn Capital paid for salaries and benefits of certain employees who may also perform various functions on behalf of certain other entities beneficiallyowned by Carl C. Icahn (collectively, “Icahn Affiliates”), including administrative and investment services. For 2015, under a separate expense-sharing agreement,we have charged Icahn Affiliates approximately $3 million for such services.Icahn Capital pays for expenses pertaining to the operation, administration and investment activities of our Investment segment for the benefit of theInvestment Funds (including salaries, benefits and rent); Icahn Capital shall be allocated pro rata for such expenses in accordance with each investor's capitalaccounts in the Investment Funds. Effective April 1, 2011, based on an expense-sharing arrangement, certain expenses borne by Icahn Capital are reimbursed bythe Investment Funds, generally when such expenses are paid. For 2015, $235 million was allocated to the Investment Funds based on this expense-sharingarrangement.During 2015, we paid an affiliate $1 million for the non-exclusive use of office space.During 2015, we paid $1 million to XO Holdings, Inc., an affiliate of Icahn Enterprises GP, our general partner, for telecommunications servicesDuring 2015, our Holding Company provided certain professional services to an Icahn Affiliate for which we charged $3 million.During 2015, Federal-Mogul made purchases from Hertz Global Holdings Inc. ("Hertz") of less than $1 million and had sales to Navistar, Inc. ("Navistar") of$18 million. We and affiliates of Mr. Icahn have a non-controlling ownership in Hertz and Navistar.ARI has from time to time purchased components from ACF Industries LLC ("ACF"), an affiliate of Mr. Icahn, under a long-term agreement, as well as on apurchase order basis. ACF is a manufacturer and fabricator of specialty railcar parts and miscellaneous steel products. Under the manufacturing services agreemententered into in 1994 and amended in 2005, ACF agreed to manufacture and distribute, at ARI’s instruction, various railcar components. In consideration for theseservices, ARI agreed to pay ACF based on agreed upon rates. The agreement automatically renews unless written notice is provided by ARI.Also in April 2015, ARI entered into a parts purchasing and sale agreement with ACF. The agreement was unanimously approved by the independentdirectors of ARI’s and Icahn Enterprises' audit committee. Under this agreement, ARI and ACF may, from time to time, purchase and sell to each other certainparts for railcars ("Railcar Parts"). ARI also provides a non-exclusive and non-assignable license of certain intellectual property related to the manufacture and saleof Railcar Parts to ARI. The buyer under the agreement must pay the market price of the parts as determined in the agreement or as stated on a public website forall ARI buyers. ARI may provide designs, engineering and purchasing support, including all materials and components to ACF. Subject to certain early terminationevents, the agreement terminates on December 31, 2020.ARI purchased $18 million of components from ACF during 2015.246In January 2013, ARI entered into a purchasing and engineering services agreement and license with ACF. The agreement was unanimously approved by theindependent directors of ARI’s and Icahn Enterprises' audit committee on the basis that the terms of the agreement were not materially less favorable to ARI thanthose that could have been obtained in a comparable transaction with an unrelated person. Under this agreement, ARI provides purchasing support and engineeringservices to ACF in connection with ACF’s manufacture and sale of tank railcars at its facility in Milton, Pennsylvania. Additionally, ARI has granted ACF anonexclusive, non-assignable license to certain of ARI’s intellectual property, including certain designs, specifications, processes and manufacturing know-howrequired to manufacture and sell tank railcars during the term of the agreement. In November 2015, ARI and ACF amended this agreement to, among otherprovisions, extend the termination date to December 31, 2016 from December 31, 2015, subject to certain early termination events.In consideration for the services and license provided by ARI to ACF in conjunction with the agreement, ACF pays ARI a royalty and, if any, a share of thenet profits ("ACF Profits") earned on each railcar manufactured and sold by ACF under the agreement, in an aggregate amount equal to 30% of such ACF Profits,as calculated under the agreement. ACF Profits are net of certain of ACF’s start-up and shutdown expenses and certain maintenance capital. If no ACF Profits arerealized on a railcar manufactured and sold by ACF pursuant to the agreement, ARI will still be entitled to the royalty for such railcar and will not share in anylosses incurred by ACF in connection therewith. In addition, any railcar components supplied by ARI to ACF for the manufacture of these railcars are provided atfair market value.Under the agreement, ACF had the exclusive right to manufacture and sell subject tank railcars for any new orders scheduled for delivery to customers on orbefore January 31, 2014. ARI has the exclusive right to any sales opportunities for tank railcars for any new orders scheduled for delivery after that date andthrough termination of the agreement. ARI also has the right to assign any sales opportunity to ACF, and ACF has the right, but not the obligation, to accept suchsales opportunity. Any sales opportunity accepted by ACF will not be reflected in ARI’s orders or backlog.Revenues of $10 million for the years ended December 31, 2015 were recorded for sales of railcar components to ACF and for royalties and profits onrailcars sold by ACF.In April 2015, ARI entered into a repair services and support agreement with ACF. The agreement was unanimously approved by the independent directorsof ARI’s and Icahn Enterprises' audit committee. Under this agreement, ARI provides certain sales and administrative and technical services, materials andpurchasing support and engineering services to ACF to provide repair and retrofit services ("Repair Services"). Additionally, ARI provides a non-exclusive andnon-assignable license of certain intellectual property related to the Repair Services for railcars. ARI receives 30% of the net profits (as defined in the agreement)for Repair Services related to all railcars not owned by ARL or its subsidiaries and 20% of the net profits for Repair Services related to all railcars owned by ARLor its subsidiaries, if any, but does not absorb any losses incurred by ACF.Under the agreement, ARI has the exclusive right to sales opportunities related to Repair Services, except for any sales opportunity related to Repair Servicespresented to ACF by ARL with respect to ARL-owned railcars. ARI also has the right to assign any sales opportunities related to Repair Services to ACF, and ACFhas the right, but not the obligation, to accept such sales opportunity. Subject to certain early termination events, the agreement terminates on December 31, 2020.ARI's revenues under this agreement were less than $1 million for the year ended December 31, 2015.In April 2013, AEP Leasing entered into an agreement ("ACF Agreement") with ACF whereby AEP Leasing agreed to purchase railcars from ACF. TheACF Agreement was assumed by ARL in connection with our purchase of a 75% economic interest in ARL. The ACF Agreement was unanimously approved byIcahn Enterprises' audit committee consisting of independent directors, who were advised by independent counsel and an independent financial advisor on the basisthat the terms were not less favorable than those terms that could have been obtained in a comparable transaction with an unaffiliated third party. Under thisagreement, purchases of railcars by our Railcar segment from ACF were $9 million for the year ended December 31, 2015 .In addition to the above purchases, on a contract-by-contract basis, ARL purchased $59 million of railcars from ACF for the year ended December 31, 2015 .ARL provides certain tax services to ACF for which it received $144,000 during the year ended December 31, 2015 .During the year ended December 31, 2015 , ARL distributed an aggregate of $25 million in distributions to IRL Holdings, LLC, an affiliate of Mr. Icahn. Inaddition, ARL made a non-resident withholding of approximately $2 million on IRL's behalf during the year ended December 31, 2015 .In December, 2012, Icahn Sourcing, LLC advised Icahn Enterprises that effective January 1, 2013 it would restructure its ownership and change its name toInsight Portfolio Group LLC (“Insight Portfolio Group”). In connection with the restructuring, Icahn Enterprises Holdings acquired a minority equity interest inInsight Portfolio Group and agreed to pay a portion of Insight Portfolio Group's annual operating expenses. In addition to the minority equity interest held by IcahnEnterprises Holdings, certain subsidiaries of Icahn Enterprises Holdings, including Federal-Mogul, CVR, Tropicana, ARI, ARL,247Viskase PSC Metals and WPH also acquired minority equity interests in Insight Portfolio Group and agreed to pay a portion of Insight Portfolio Group's annualoperating expenses. A number of other entities with which Mr. Icahn has a relationship also acquired equity interests in Insight Portfolio Group and also agreed topay certain of Insight Portfolio Group's annual operating expenses. For 2015, we and certain of our subsidiaries paid approximately $2 million to the InsightPortfolio Group.We may also enter into other transactions with Icahn Enterprises GP and its affiliates, including, without limitation, buying and selling properties andborrowing and lending funds from or to Icahn Enterprises GP or its affiliates, joint venture developments and issuing securities to Icahn Enterprises GP or itsaffiliates in exchange for, among other things, assets that they now own or may acquire in the future. Icahn Enterprises GP is also entitled to reimbursement by usfor all allocable direct and indirect overhead expenses, including, but not limited to, salaries and rent, incurred in connection with the conduct of our business.Partnership Provisions Concerning Property ManagementIcahn Enterprises GP and its affiliates may receive fees in connection with the acquisition, sale, financing, development, construction, marketing andmanagement of new properties acquired by us. As development and other new properties are acquired, developed, constructed, operated, leased and financed,Icahn Enterprises GP or its affiliates may perform acquisition functions, including the review, verification and analysis of data and documentation with respect topotential acquisitions, and perform development and construction oversight and other land development services, property management and leasing services, eitheron a day-to-day basis or on an asset management basis, and may perform other services and be entitled to fees and reimbursement of expenses relating thereto,provided the terms of such transactions are in accordance with our partnership agreement. It is not possible to state precisely what role, if any, Icahn EnterprisesGP or any of its affiliates may have in the acquisition, development or management of any new investments. Consequently, it is not possible to state the amount ofthe income, fees or commissions Icahn Enterprises GP or its affiliates might be paid in connection therewith since the amount thereof is dependent upon thespecific circumstances of each investment, including the nature of the services provided, the location of the investment and the amount customarily paid in suchlocality for such services. Subject to the specific circumstances surrounding each transaction and the overall fairness and reasonableness thereof to us, the feescharged by Icahn Enterprises GP and its affiliates for the services described below generally will be within the ranges set forth below:•Property Management and Asset Management Services. To the extent that we acquire any properties requiring active management (e.g., operatingproperties that are not net-leased) or asset management services, including on-site services, we may enter into fee-paying management or otherarrangements with Icahn Enterprises GP or its affiliates.•Brokerage and Leasing Commissions. We also may pay affiliates of Icahn Enterprises GP real estate brokerage and leasing commissions (whichgenerally may range from 2% to 6% of the purchase price or rentals depending on location; this range may be somewhat higher for problem properties orlesser-valued properties).•Lending Arrangements. Icahn Enterprises GP or its affiliates may lend money to, or arrange loans for, us. Fees payable to Icahn Enterprises GP or itsaffiliates in connection with such activities include mortgage brokerage fees (generally .5% to 3% of the loan amount), mortgage origination fees(generally .5% to 1.5% of the loan amount) and loan servicing fees (generally .10% to .12% of the loan amount), as well as interest on any amountsloaned by Icahn Enterprises GP or its affiliates to us.•Development and Construction Services. Icahn Enterprises GP or its affiliates may also receive fees for development services, generally 1% to 4% ofdevelopment costs, and general contracting services or construction management services, generally 4% to 6% of construction costs.During 2015 we did not receive any fees in respect of items as described above.Affiliate Pension ObligationsMr. Icahn, through certain affiliates, owns 100% of Icahn Enterprises GP and approximately 89.0% of Icahn Enterprises' outstanding depositary units as ofDecember 31, 2015 . Applicable pension and tax laws make each member of a “controlled group” of entities, generally defined as entities in which there is at leastan 80% common ownership interest, jointly and severally liable for certain pension plan obligations of any member of the controlled group. These pensionobligations include ongoing contributions to fund the plan, as well as liability for any unfunded liabilities that may exist at the time the plan is terminated. Inaddition, the failure to pay these pension obligations when due may result in the creation of liens in favor of the pension plan or the Pension Benefit GuarantyCorporation ("PBGC") against the assets of each member of the controlled group.As a result of the more than 80% ownership interest in us by Mr. Icahn’s affiliates, we and our subsidiaries are subject to the pension liabilities of entities inwhich Mr. Icahn has a direct or indirect ownership interest of at least 80%. As a result of our ownership of more than 80% in our subsidiaries, we and oursubsidiaries are subject to the pension liabilities of all entities in which Mr. Icahn has a direct or indirect ownership interest of at least 80%. ACF and Federal-Mogul, are the sponsors of several248pension plans. All the minimum funding requirements of the Code and the Employee Retirement Income Security Act of 1974, as amended by the PensionProtection Act of 2006, for these plans have been met as of December 31, 2015 and 2014. If the plans were voluntarily terminated, they would be underfunded byapproximately $589 million and $474 million as of December 31, 2015 and 2014, respectively. These results are based on the most recent information provided bythe plans’ actuaries. These liabilities could increase or decrease, depending on a number of factors, including future changes in benefits, investment returns, and theassumptions used to calculate the liability. As members of the controlled group, we would be liable for any failure of ACF and Federal-Mogul to make ongoingpension contributions or to pay the unfunded liabilities upon a termination of the pension plans of ACF and Federal-Mogul. In addition, other entities now or in thefuture within the controlled group in which we are included may have pension plan obligations that are, or may become, underfunded and we would be liable forany failure of such entities to make ongoing pension contributions or to pay the unfunded liabilities upon termination of such plans.The current underfunded status of the pension plans of ACF and Federal-Mogul requires them to notify the PBGC of certain “reportable events,” such as ifwe cease to be a member of the ACF and Federal-Mogul controlled group, or if we make certain extraordinary dividends or stock redemptions. The obligation toreport could cause us to seek to delay or reconsider the occurrence of such reportable events.Starfire Holding Corporation ("Starfire"), which is 99.4% owned by Mr. Icahn, has undertaken to indemnify us and our subsidiaries from losses resultingfrom any imposition of certain pension funding or termination liabilities that may be imposed on us and our subsidiaries or our assets as a result of being a memberof the Icahn controlled group. The Starfire indemnity (which does not extend to pension liabilities of our subsidiaries that would be imposed on us as a result of ourinterest in these subsidiaries and not as a result of Mr. Icahn and his affiliates holding more than an 80% ownership interest in us, and as such would not extend tothe unfunded pension termination liability for Federal-Mogul) provides, among other things, that so long as such contingent liabilities exist and could be imposedon us, Starfire will not make any distributions to its stockholders that would reduce its net worth to below $250 million . Nonetheless, Starfire may not be able tofund its indemnification obligations to us.Director IndependenceThe board of directors of Icahn Enterprises GP has determined that we are a “controlled company” for the purposes of the NASDAQ's listing rules andtherefore are not required to have a majority of independent directors or to have compensation and nominating committees consisting entirely of independentdirectors. Nevertheless, we believe that Messrs. Leidesdorf, Nelson and Wasserman are “independent” as defined in the currently applicable listing rules ofNASDAQ. Messrs. Leidesdorf, Nelson and Wasserman serve as members of our audit committee. A majority of the members of Icahn Enterprises GP's board ofdirectors are independent and the audit committee consists entirely of these independent directors.Item 14. Principal Accountant Fees and Services.We incurred $13,229,000 and $12,687,000 in audit fees and expenses from Grant Thornton LLP for 2015 and 2014, respectively. We include in the categoryof audit fees such services related to the audits of annual consolidated financial statements and internal controls, reviews of quarterly financial statements, reviewsof reports filed with the SEC and other services, including services related to consents and registration statements filed with the SEC.We incurred $804,000 and $416,000 in audit-related fees and expenses from Grant Thornton LLP for 2015 and 2014, respectively, relating primarily toservices provided in connection with offering memorandums, potential acquisitions and employee benefit plans. Additionally, we incurred $34,000 and $63,000 intax-related fees and expenses from Grant Thornton LLP for 2015 and 2014, respectively.In accordance with Icahn Enterprises' and Icahn Enterprises Holdings' Amended and Restated Audit Committee Charters adopted on March 12, 2004, theaudit committee is required to approve in advance any and all audit services and permitted non-audit services provided to Icahn Enterprises, Icahn EnterprisesHoldings and their consolidated subsidiaries by their independent auditors (subject to the de minimis exception of Section 10A (i) (1) (B) of the '34 Act), all asrequired by applicable law or listing standards. All of the fees in 2015 and 2014 were pre-approved by the audit committee.249PART IVItem 15. Exhibits and Financial Statement Schedules.(a)(1) Financial Statements:The following financial statements of Icahn Enterprises L.P., and subsidiaries, are included in Part II, Item 8 of this Report: Page NumberConsolidated Balance Sheets - December 31, 2015 and 2014140Consolidated Statements of Operations - Years Ended December 31, 2015, 2014 and 2013141Consolidated Statements of Comprehensive Income - Years Ended December 31, 2015, 2014 and 2013142Consolidated Statement of Changes in Equity - Years Ended December 31, 2015, 2014 and 2013143Consolidated Statements of Cash Flows - Years Ended December 31, 2015, 2014 and 2013144Notes to Consolidated Financial Statements152The following financial statements of Icahn Enterprises Holdings L.P., and subsidiaries, are included in Part II, Item 8 of this Report: Page NumberConsolidated Balance Sheets - December 31, 2015 and 2014146Consolidated Statements of Operations - Years Ended December 31, 2015, 2014 and 2013147Consolidated Statements of Comprehensive Income - Years Ended December 31, 2015, 2014 and 2013148Consolidated Statement of Changes in Equity - Years Ended December 31, 2015, 2014 and 2013149Consolidated Statements of Cash Flows - Years Ended December 31, 2015, 2014 and 2013150Notes to Consolidated Financial Statements152(a)(2) Financial Statement Schedules: Page NumberSchedule I - Condensed Financial Information of Parent (Icahn Enterprises L.P.)251Schedule I - Condensed Financial Information of Parent (Icahn Enterprises Holdings L.P.)255All other financial statement schedules have been omitted because the required financial information is not applicable, immaterial or the information is shownin the consolidated financial statements or notes thereto.(a)(3) Exhibits:The list of exhibits required by Item 601of Regulation S-K and filed as part of this Report is set forth in the Exhibit Index.250SCHEDULE IICAHN ENTERPRISES, L.P.(Parent Company)CONDENSED BALANCE SHEETS December 31, 2015 2014 (In millions, except unit amounts)ASSETS Investments in subsidiaries, net$9,577 $11,028Deferred financing costs6 8Total Assets$9,583 $11,036 LIABILITIES AND EQUITY Accrued expenses and other liabilities$106 $107Debt5,490 5,486 5,596 5,593 Commitments and contingencies (Note 3) Equity: Limited partners: Depositary units: 131,481,059 and 123,103,414 units issued and outstanding at December31, 2015 and 2014, respectively4,244 5,672General partner(257) (229)Total equity3,987 5,443Total Liabilities and Equity$9,583 $11,036See notes to condensed financial statements.251SCHEDULE IICAHN ENTERPRISES, L.P. (Parent Company)CONDENSED STATEMENTS OF OPERATIONS Year Ended December 31, 2015 2014 2013 (In millions)Interest expense$(289) $(292) $(302)Loss on extinguishment of debt— (108) —Equity in (loss) earnings of subsidiaries(905) 27 1,327Net (loss) income$(1,194) $(373) $1,025Net (loss) income allocable to: Limited partners$(1,170) $(366) $1,005 General partner(24) (7) 20 $(1,194) $(373) $1,025See notes to condensed financial statements.252SCHEDULE IICAHN ENTERPRISES, L.P.(Parent Company)CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 2014 2013 (In millions)Cash flows from operating activities: Net (loss) income$(1,194) $(373) $1,025Adjustments to reconcile net (loss) income to net cash used in operating activities: Amortization of deferred financing costs1 1 2 Loss on extinguishment of debt— 108 — Equity in (income) loss of subsidiary905 (27) (1,327)Net cash used in operating activities(288) (291) (300)Cash flows from investing activities: Net investment in and advances from subsidiary404 (951) (173)Net cash provided by (used in) investing activities404 (951) (173)Cash flows from financing activities: Partnership distributions(116) (125) (51)Partnership contributions— — 587Proceeds from borrowings— 4,991 493Repayments of borrowings— (3,624) (556)Net cash (used in) provided by financing activities(116) 1,242 473Net change in cash and cash equivalents— — —Cash and cash equivalents, beginning of period— — —Cash and cash equivalents, end of period$— $— $—See notes to condensed financial statements.253ICAHN ENTERPRISES L.P. (Parent Company)NOTES TO CONDENSED FINANCIAL STATEMENTS1. Description of Business and Basis of Presentation.Icahn Enterprises, L.P. (“Icahn Enterprises”) is a master limited partnership formed in Delaware on February 17, 1987. We own a 99% limited partner interestin Icahn Enterprises Holdings L.P. (''Icahn Enterprises Holdings''). Icahn Enterprises Holdings and its subsidiaries own substantially all of our assets and liabilitiesand conduct substantially all of our operations. Icahn Enterprises G.P. Inc. (''Icahn Enterprises GP''), our sole general partner, which is owned and controlled byCarl C. Icahn, owns a 1% general partner interest in both us and Icahn Enterprises Holdings, representing an aggregate 1.99% general partner interest in us andIcahn Enterprises Holdings. As of December 31, 2015 , Icahn Enterprises Holdings is engaged in the following continuing operating businesses: Investment,Automotive, Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate and Home Fashion.For the years ended December 31, 2015 , 2014 and 2013, Icahn Enterprises received $535 million , $561 million and $1,190 million , respectively, individends and distributions from consolidated subsidiaries.The condensed financial statements of Icahn Enterprises should be read in conjunction with the consolidated financial statements and notes thereto includedin Part II, Item 8 of this Report.2. Debt.See Note 10 , “ Debt ,” to the consolidated financial statements located in Part II, Item 8 of this Report. Icahn Enterprises' Parent company debt consists of thefollowing: December 31, 2015 2014 (in millions)Senior unsecured 5.875% notes due 2022$1,339 $1,337Senior unsecured 6.00% notes due 20201,707 1,708Senior unsecured 4.875% notes due 20191,271 1,270Senior unsecured 3.5% notes due 20171,173 1,171Total debt$5,490 $5,4863. Commitments and Contingencies.See Note 17 , “ Commitments and Contingencies ,” to the consolidated financial statements located in Part II, Item 8 of this Report.254SCHEDULE IICAHN ENTERPRISES HOLDINGS L.P.(Parent Company) CONDENSED BALANCE SHEETS December 31, 2015 2014 (in millions)ASSETS Cash and cash equivalents$51 $388Other assets223 114Investments in subsidiaries, net9,363 10,592Total Assets$9,637 $11,094LIABILITIES AND EQUITY Accrued expenses and other liabilities$109 $111Debt5,517 5,517 5,626 5,628 Commitments and contingencies (Note 3) Equity: Limited partner4,310 5,751General partner(299) (285)Total equity4,011 5,466Total Liabilities and Equity$9,637 $11,094See notes to condensed financial statements.255SCHEDULE I ICAHN ENTERPRISES HOLDINGS L.P.(Parent Company)CONDENSED STATEMENTS OF OPERATIONS Year Ended December 31, 2015 2014 2013 (in millions)Interest and dividend income$— $1 $—Loss on extinguishment of debt— (108) —Equity in (loss) earnings of subsidiaries(903) 28 1,342Other income, net28 20 15 (875) (59) 1,357Interest expense291 290 305Selling, general and administrative27 23 27 318 313 332Net (loss) income$(1,193) $(372) $1,025Net (loss) income allocable to: Limited partner$(1,181) $(368) $1,015 General partner(12) (4) 10 $(1,193) $(372) $1,025See notes to condensed financial statements.256SCHEDULE IICAHN ENTERPRISES HOLDINGS L.P.(Parent Company)CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 2014 2013 (in millions)Cash flows from operating activities: Net (loss) income$(1,193) $(372) $1,025Adjustments to reconcile net (loss) income to net cash used in operating activities: Equity in (income) loss of subsidiary903 (28) (1,342) Loss on extinguishment of debt— 108 — Investment gains— — — Depreciation and amortization2 5 (1) Other, net(16) — — Change in operating assets and liabilities(4) (47) 18Net cash used in operating activities(308) (334) (300)Cash flows from investing activities: Net investment in subsidiaries155 (661) (128)Purchase of investments(96) — —Other, net28 9 4Net cash provided by (used in) investing activities87 (652) (124)Cash flows from financing activities: Partnership distributions(116) (125) (51)Partner contribution— — 593Proceeds from borrowings— 4,991 493Repayments of borrowings— (3,634) (576)Net cash (used in) provided by financing activities(116) 1,232 459Net change in cash and cash equivalents(337) 246 35Cash and cash equivalents, beginning of period388 142 107Cash and cash equivalents, end of period$51 $388 $142See notes to condensed financial statements.257ICAHN ENTERPRISES HOLDINGS L.P. (Parent Company)NOTES TO CONDENSED FINANCIAL STATEMENTS1. Description of Business and Basis of Presentation.Icahn Enterprises Holdings L.P. (“Icahn Enterprises Holdings”) is a limited partnership formed in Delaware on February 17, 1987. Our sole limited partner isIcahn Enterprises L.P. (“Icahn Enterprises”), a master limited partnership which owns a 99% interest in us. Icahn Enterprises G.P. Inc. (“Icahn Enterprises GP''),our sole 1% general partner, is a Delaware corporation which is owned and controlled by Carl C. Icahn. As of December 31, 2015 , Icahn Enterprises Holdings isengaged in the following continuing operating businesses: Investment, Automotive, Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate andHome Fashion.For the years ended December 31, 2015 , 2014 and 2013, Icahn Enterprises Holdings received $535 million , $561 million and $1,190 million , respectively,in dividends and distributions from consolidated subsidiaries.The condensed financial statements of Icahn Enterprises Holdings should be read in conjunction with the consolidated financial statements and notes theretoincluded in Part II, Item 8 of this Report.2. Debt.See Note 10 , “ Debt ,” to the consolidated financial statements located in Part II, Item 8 of this Report. Icahn Enterprises Holdings' Parent company debtconsists of the following: December 31, 2015 2014 (in millions)Senior unsecured 5.875% notes due 2022$1,339 1,337Senior unsecured 6.00% notes due 20201,707 1,708Senior unsecured 4.875% notes due 20191,271 1,270Senior unsecured 3.5% notes due 20171,173 1,171Mortgages payable27 31Total debt$5,517 $5,5173. Commitments and Contingencies.See Note 17 , “ Commitments and Contingencies ,” to the consolidated financial statements located in Part II, Item 8 of this Report.258SIGNATURESPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalfby the undersigned, thereunto duly authorized. Icahn Enterprises L.P. By:Icahn Enterprises G.P. Inc., itsgeneral partner By:/s/Keith Cozza Keith CozzaPresident, Chief Executive Officer and DirectorDate: February 29, 2016Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities indicatedwith respect to Icahn Enterprises G.P. Inc., the general partner of Icahn Enterprises L.P., and on behalf of the registrant and on the dates indicated below by thefollowing persons in the capacities and on the dates indicated.Signature Title Date /s/Keith Cozza President, Chief Executive Officer and Director February 29, 2016Keith Cozza /s/SungHwan Cho Chief Financial Officer and Director February 29, 2016SungHwan Cho /s/Peter Reck Chief Accounting Officer February 29, 2016Peter Reck /s/Jack G. Wasserman Director February 29, 2016Jack G. Wasserman /s/William A. Leidesdorf Director February 29, 2016William A. Leidesdorf /s/James L. Nelson Director February 29, 2016James L. Nelson Chairman of the Board Carl C. Icahn 259SIGNATURESPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalfby the undersigned, thereunto duly authorized. Icahn Enterprises Holdings L.P. By:Icahn Enterprises G.P. Inc., itsgeneral partner By:/s/Keith Cozza Keith Cozza President, Chief Executive Officer and DirectorDate: February 29, 2016Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities indicatedwith respect to Icahn Enterprises G.P. Inc., the general partner of Icahn Enterprises Holdings L.P., and on behalf of the registrant and on the dates indicated belowby the following persons in the capacities and on the dates indicated.Signature Title Date /s/Keith Cozza President, Chief Executive Officer and Director February 29, 2016Keith Cozza /s/SungHwan Cho Chief Financial Officer and Director February 29, 2016SungHwan Cho /s/Peter Reck Chief Accounting Officer February 29, 2016Peter Reck /s/Jack G. Wasserman Director February 29, 2016Jack G. Wasserman /s/William A. Leidesdorf Director February 29, 2016William A. Leidesdorf /s/James L. Nelson Director February 29, 2016James L. Nelson Chairman of the Board Carl C. Icahn 260EXHIBIT INDEXExhibit No. Description2.1 Agreement and Plan of Merger, dated as of December 30, 2015, by and among Icahn Enterprises Holdings L.P., IEP Parts Acquisition LLCand The Pep Boys - Manny, Moe and Jack (incorporated by reference to Exhibit 2.1 to Icahn Enterprises' and Icahn Enterprises Holdings'joint Form 8-K (SEC File Nos. 1-9516 and 333-118021-01, respectively), filed on December 30, 2015.3.1 Certificate of Limited Partnership of Icahn Enterprises L.P., f/k/a American Real Estate Partners, L.P. (“Icahn Enterprises”) dated February17, 1987, as thereafter amended from time to time (incorporated by reference to Exhibit 3.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on September 20, 2007).3.2 Amended and Restated Agreement of Limited Partnership of Icahn Enterprises, dated May 12, 1987 (incorporated by reference to Exhibit 3.2to Icahn Enterprises' Form 10-Q for the quarter ended March 31, 2004 (SEC File No. 1-9516), filed on May 10, 2004).3.3 Amendment No. 1 to the Amended and Restated Agreement of Limited Partnership of Icahn Enterprises, dated February 22, 1995(incorporated by reference to Exhibit 3.3 to Icahn Enterprises' Form 10-K for the year ended December 31, 1994 (SEC File No. 1-9516),filed on March 31, 1995).3.4 Amendment No. 2 to the Amended and Restated Agreement of Limited Partnership of Icahn Enterprises, dated August 16, 1996(incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K SEC File No. 1-9516), filed on August 16, 1996).3.5 Amendment No. 3 to the Amended and Restated Agreement of Limited Partnership of Icahn Enterprises, dated May 9, 2002 (incorporated byreference to Exhibit 3.8 to Icahn Enterprises' Form 10-K for the year ended December 31, 2002 (SEC File No. 1-9516), filed on March 31,2003).3.6 Amendment No. 4 to the Amended and Restated Agreement of Limited Partnership of Icahn Enterprises, dated June 29, 2005 (incorporatedby reference to Exhibit 3.1 to Icahn Enterprises' Form 10-Q for the quarter ended March 31, 2005 (SEC File No. 1-9516), filed on June 30,2005).3.7 Amendment No. 5 to the Amended and Restated Agreement of Limited Partnership of Icahn Enterprises, dated September 17, 2007(incorporated by reference to Exhibit 99.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on December 21, 2007).3.8 Amendment No. 6 to the Amended and Restated Agreement of Limited Partnership of Icahn Enterprises, dated December 17, 2007(incorporated by reference to Exhibit 99.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on December 21, 2007).3.9 Certificate of Limited Partnership of Icahn Enterprises Holdings L.P., f/k/a American Real Estate Holdings Limited Partnership (“IcahnEnterprises Holdings”), dated February 17, 1987, as amended pursuant to the First Amendment thereto, dated March 10, 1987 (incorporatedby reference to Exhibit 3.5 to Icahn Enterprises' Form 10-Q for the quarter ended March 31, 2004 (SEC File No. 1-9516), filed on May 10,2004, as further amended pursuant to the Certificate of Amendment thereto, dated September 17, 2007 (incorporated by reference to Exhibit3.9 to Icahn Enterprises' Form 10-K for the year ended December 31, 2007 (SEC File No. 1-9516), filed on March 17, 2008).3.10 Amended and Restated Agreement of Limited Partnership of Icahn Enterprises Holdings, dated as of July 1, 1987 (incorporated by referenceto Exhibit 3.5 to Icahn Enterprises' Form 10-Q for the quarter ended March 31, 2004 (SEC File No. 1-9516), filed on May 10, 2004).3.11 Amendment No. 1 to the Amended and Restated Agreement of Limited Partnership of Icahn Enterprises Holdings, dated August 16, 1996(incorporated by reference to Exhibit 10.2 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on August 16, 1996).3.12 Amendment No. 2 to the Amended and Restated Agreement of Limited Partnership of Icahn Enterprises Holdings, dated June 14, 2002(incorporated by reference to Exhibit 3.9 to Icahn Enterprises' Form 10-K for the year ended December 31, 2002 (SEC File No. 1-9516),filed on March 31, 2003).3.13 Amendment No. 3 to the Amended and Restated Agreement of Limited Partnership of Icahn Enterprises Holdings, dated June 29, 2005(incorporated by reference to Exhibit 3.2 to Icahn Enterprises' Form 10-Q for the quarter ended March 31, 2005 (SEC File No. 1-9516), filedon June 30, 2005).3.14 Amendment No. 4 to the Amended and Restated Agreement of Limited Partnership of Icahn Enterprises Holdings, dated September 17, 2007(incorporated by reference to Exhibit 3.11 to Icahn Enterprises' Form 10-K for the year ended December 31, 2007 (SEC File No. 1-9516),filed on March 17, 2008).4.1 Form of Transfer Application (incorporated by reference to Exhibit 4.4 to Icahn Enterprises' Form 10-K for the year ended December 31,2004 (SEC File No. 1-9516), filed on March 16, 2005).4.2 Specimen Depositary Receipt (incorporated by reference to Exhibit 4.3 to Icahn Enterprises' Form 10-K for the year ended December 31,2004 (SEC File No. 1-9516), filed on March 16, 2005).4.3 Specimen Certificate representing preferred units (incorporated by reference to Exhibit 4.9 to Icahn Enterprises' Form S-3 (SEC File No. 33-54767), filed on February 22, 1995).2614.4 Registration Rights Agreement between Icahn Enterprises and High Coast Limited Partnership (f/k/a X LP) (incorporated by reference toExhibit 10.2 to Icahn Enterprises' Form 10-K for the year ended December 31, 2004 (SEC File No. 1-9516), filed on March 16, 2005).4.5 Registration Rights Agreement, dated June 30, 2005 between Icahn Enterprises and Highcrest Investors Corp., Amos Corp., Cyprus, LLCand Gascon Partners (incorporated by reference to Exhibit 10.6 to Icahn Enterprises' Form 10-Q (SEC File No. 1-9516), filed on August 9,2005), as amended by Amendment No. 1 thereto, dated as of August 8, 2007 (incorporated by reference to Exhibit 10.5 to Icahn Enterprises'Form 10-Q for the quarter ended June 30, 2007 (SEC File No. 1-9516), filed on August 9, 2007).4.6 Indenture, dated as of August 1, 2013, among Icahn Enterprises, Icahn Enterprises Finance, Icahn Enterprises Holdings, as Guarantor, andWilmington Trust Company, as Trustee relating to the 6.000% Senior Notes Due 2020 (incorporated by reference to Exhibit 4.1 to IcahnEnterprises' Form 8-K (SEC File No. 1-9516), filed on August 1, 2013).4.7 Amended and Restated Depositary Agreement among Icahn Enterprises, Icahn Enterprises GP and Registrar and Transfer Company, dated asof August 23, 2013 (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on August 23,2013).4.8 Indenture, dated as of January 21, 2014, among Icahn Enterprises, Icahn Enterprises Finance, Icahn Enterprises Holdings, as Guarantor, andWilmington Trust Company, as Trustee relating to the 3.500% Senior Notes Due 2017 and 4.875% Senior Notes Due 2019 (incorporated byreference to Exhibit 4.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on January 21, 2014).4.9 Indenture, dated as of January 29, 2014, among Icahn Enterprises, Icahn Enterprises Finance, Icahn Enterprises Holdings, as Guarantor, andWilmington Trust Company, as Trustee relating to the 5.875% Senior Notes Due 2022 (incorporated by reference to Exhibit 4.1 to IcahnEnterprises' Form 8-K/A (SEC File No. 1-9516), filed on January 30, 2014).10.1 Amended and Restated Agency Agreement (incorporated by reference to Exhibit 10.12 to Icahn Enterprises' Form 10-K for the year endedDecember 31, 1994 (SEC File No. 1-9516), filed on March 31, 1995).10.2 Rights Offering Sponsor Agreement, dated June 23, 2005, by and between WS Textile Co., Inc. and Icahn Enterprises Holdings(incorporated by reference to Exhibit 10.3 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on July 1, 2005).10.3 Undertaking, dated November 20, 1998, by Starfire Holding Corporation, for the benefit of Icahn Enterprises and its subsidiaries(incorporated by reference to Exhibit 10.42 to Icahn Enterprises' Form 10-K for the year ended December 31, 2005 (SEC File No. 1-9516),filed on March 16, 2006).10.4 Stock Purchase Agreement by and among Icahn Enterprises Holdings, IEH FM Holdings LLC , Barberry Corp. and Thornwood AssociatesLimited Partnership, dated July 3, 2008 (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516),filed on July 3, 2008).10.5 Covered Affiliate and Shared Expenses Agreement by and among Icahn Enterprises, Icahn Partners LP, Icahn Fund Ltd., Icahn Fund II Ltd.,Icahn Fund III Ltd., Icahn Partners Master Fund L.P., Icahn Partners Master Fund II L.P., Icahn Partners Master Fund III L.P., Icahn CaymanPartners, L.P. and Icahn Partners Master Fund II Feeder LP (incorporated by reference to Exhibit 10.4 to Icahn Enterprises' Form 10-Q forthe quarter ended June 30, 2007 (SEC File No. 1-9516), filed on August 9, 2007).10.6 Tender and Support Agreement, dated as of October 6, 2008, by and among Icahn Enterprises Holdings L.P. and Eli Lilly and Company(incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on October 9, 2008).10.7 Support Agreement, dated as of December 15, 2010, by and among Dynegy Inc., High River Limited Partnership, Icahn Partners LP, IcahnPartners Master Fund LP, Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP (incorporated by reference to Exhibit 10.1to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on December 7, 2010).10.8 Loan and Security Agreement, dated as of June 15, 2011, among WestPoint Home, Inc., as the Borrower, the Lenders from time to time partythereto, and Bank of America, N.A., as the Administrative Agent (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K(SEC File No. 1-9516), filed on August 9, 2011).10.9 Transaction Agreement, dated as of April 18, 2012, by and among CVR Energy, Inc., IEP Energy LLC, Icahn Partners LP, Icahn PartnersMaster Fund LP, Icahn Partners Master Fund II LP, Icahn Partners Master Fund III LP, High River Limited Partnership, Hopper InvestmentsLLC, Barberry Corp., Icahn Onshore LP, Icahn Offshore LP, Icahn Capital LP, IPH GP LLC, Icahn Enterprises Holdings L.P., IcahnEnterprises G.P. Inc., Beckton Corp. and Carl C. Icahn. (incorporated by reference to Exhibit (d) to the CVR Energy Inc. Schedule TO/A(File No. 005-83522) filed on April 23, 2012)10.10 Investment Agreement, by and between Federal-Mogul Corporation and IEH FM Holdings LLC, dated December 2, 2012 (incorporated byreference to Exhibit 10.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on December 3, 2012).26210.11 Contribution and Exchange Agreement by and among Icahn Enterprises, CCI Offshore Corp., CCI Onshore Corp., Icahn Management LPand Carl C. Icahn (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 10-Q for the quarter ended June 30, 2007 (SEC FileNo. 1-9516), filed on August 9, 2007).10.12 Contribution and Exchange Agreement by and among Icahn Enterprises, Barberry Corp. and Thornwood Associates Limited Partnership,dated December 2, 2008 (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed onDecember 3, 2008).10.13 Contribution and Exchange Agreement, dated January 12, 2010, among Icahn Enterprises, Beckton Corp., Barberry Corp., Modal LLC andCaboose Holding, LLC (incorporated by reference to Exhibit 10.2 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on January15, 2010).10.14 Contribution and Exchange Agreement, dated January 12, 2010, among Icahn Enterprises, Beckton Corp., Barberry Corp., Koala HoldingLimited Partnership, High River Limited Partnership and Meadow Walk Limited Partnership (incorporated by reference to Exhibit 10.3 toIcahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on January 15, 2010).10.15 Contribution and Exchange Agreement by and among Icahn Enterprises, Beckton Corp., Barberry Corp., High River Limited Partnership,and Koala Holding Limited Partnership dated August 24, 2012 (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K(SEC File No. 1-9516), filed on August 28, 2012).10.16 Contribution Agreement, dated September 20, 2013, among AEP Rail Corp., IRL Holding LLC, American Railcar Leasing, LLC and IEPEnergy Holding LLC (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on September25, 2013).10.17 Registration Rights Agreement, dated January 17, 2012, among Icahn Enterprises, Icahn Enterprises Finance, Icahn Enterprises Holdings, asGuarantor, and Jefferies & Company, Inc., as the Initial Purchaser (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K(SEC File No. 1-9516), filed on January 17, 2012).10.18 Registration Rights Agreement, dated February 6, 2012, among Icahn Enterprises, Icahn Enterprises Finance, Icahn Enterprises Holdings, asGuarantor, and Jefferies & Company, Inc., as the Initial Purchaser (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K(SEC File No. 1-9516), filed on February 6, 2012).10.19 Registration Rights Agreement, dated July 12, 2012, among Icahn Enterprises, Icahn Enterprises Finance, Icahn Enterprises Holdings, asGuarantor, and Jefferies & Company, Inc., as the Initial Purchaser (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K(SEC File No. 1-9516), filed on July 12, 2012).10.20 Registration Rights Agreement, dated August 1, 2013, among Icahn Enterprises, Icahn Enterprises Finance, Icahn Enterprises Holdings, asGuarantor, and Jefferies LLC, as the Initial Purchaser (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K (SEC FileNo. 1-9516), filed on August 1, 2013).10.21 Agreement dated as of March 31, 2011 among Icahn Enterprises L.P., Icahn Enterprises Holdings L.P. and Icahn Enterprises G.P. Inc., IcahnOnshore LP, Icahn Offshore LP and Icahn Capital LP, Icahn Partners LP, Icahn Partners Master Fund LP, Icahn Partners Master Fund II LP,Icahn Partners Master Fund III LP, Carl C. Icahn, Brett Icahn, Samuel Merksamer, David Schechter, Vincent Intrieri and David Yim(incorporated by reference to Exhibit 10.2 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on August 9, 2011).10.22 Amended and Restated Co- Manager Agreement, dated July 24, 2012, among Icahn Enterprises L.P., Icahn Capital LP and Brett Icahn(incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on July 27, 2012).10.23 Amended and Restated Co- Manager Agreement, dated July 24, 2012, among Icahn Enterprises L.P., Icahn Capital LP and David Schechter(incorporated by reference to Exhibit 10.2 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on July 27, 2012).10.24 Amended and Restated Co- Manager Agreement, dated October 22, 2013, among Icahn Enterprises, Icahn Capital LP and each of Brett Icahnand David Schechter (incorporated by reference to Exhibit 10.1 to Icahn Enterprises' Form 8-K (SEC File No. 1-9516), filed on October 22,2013).12.1 Ratio of earnings to fixed charges (Icahn Enterprises).12.2 Ratio of earnings to fixed charges (Icahn Enterprises Holdings).14.1 Code of Business Conduct and Ethics (incorporated by reference to Exhibit 14.1 to Icahn Enterprises' Form 10-Q for the quarter endedSeptember 30, 2012 (SEC File No. 1-9516), filed on November 7, 2012).18.1 Preferability letter received from Grant Thornton LLP, dated November 7, 2007 (incorporated by reference to Exhibit 18.1 to IcahnEnterprises' Form 10-Q for the quarter ended September 30, 2007 (SEC File No. 1-9516), filed on November 9, 2007).21.1 Subsidiaries of the Registrants.23.1 Consent of Grant Thornton LLP.31.1 Certification of Chief Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 and Rule 13a-14(a) of the SecuritiesExchange Act of 1934.26331.2 Certification of Chief Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 and Rule 13a-14(a) of the SecuritiesExchange Act of 1934.32.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.1350) and Rule 13a-14(b) of the Securities Exchange Act of 1934.Exhibit 101 The following financial information from Icahn Enterprises' and Icahn Enterprises Holdings' Annual Report on Form 10-K for the year endedDecember 31, 2015, formatted in XBRL (Extensible Business Reporting Language) includes: (i) the Consolidated Balance Sheets as ofDecember 31, 2015 and 2014, (ii) the Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013, (iii)the Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013,(iv) the ConsolidatedStatement of Changes in Equity for the years ended December 31, 2015, 2014 and 2013, (v) the Consolidated Statements of Cash Flows forthe years ended December 31, 2015, 2014 and 2013 and (vi) the Notes to the Consolidated Financial Statements.264EXHIBIT 12.1ICAHN ENTERPRISES L.P. AND SUBSIDIARESRATIO OF EARNINGS TO FIXED CHARGES(in millions, except ratio) Year Ended December 31, 2015 2014 2013 2012 2011Earnings: (Loss) income from continuing operations before income taxes, income(loss) from equity investees and non-controlling interests$(2,121) $(682) $2,300 $646 $1,804Fixed charges1,203 885 595 607 522Distributed income of equity investees11 25 33 31 16Total Earnings$(907) $228 $2,928 $1,284 $2,342 Fixed Charges: Interest expense$1,154 $847 $560 $572 $490Estimated interest within rental expense49 38 35 35 32Total Fixed Charges$1,203 $885 $595 $607 $522 Ratio of earnings to fixed chargesn/a n/a 4.9 2.1 4.5Dollar shortfall$2,110 $657 n/a n/a n/aEXHIBIT 12.2ICAHN ENTERPRISES HOLDINGS L.P. AND SUBSIDIARESRATIO OF EARNINGS TO FIXED CHARGES(in millions, except ratio) Year Ended December 31, 2015 2014 2013 2012 2011Earnings: (Loss) income from continuing operations before income taxes, income(loss) from equity investees and non-controlling interests$(2,120) $(681) $2,300 $647 $1,805Fixed charges1,202 884 595 606 521Distributed income of equity investees11 25 33 31 16Total Earnings$(907) $228 $2,928 $1,284 $2,342 Fixed Charges: Interest expense$1,153 $846 $560 $571 $489Estimated interest within rental expense49 38 35 35 32Total Fixed Charges$1,202 $884 $595 $606 $521 Ratio of earnings to fixed chargesn/a n/a 4.9 2.1 4.5Dollar shortfall$2,109 $656 n/a n/a n/aEXHIBIT 21.1Subsidiaries of the RegistrantsEntityJurisdiction of FormationIcahn Enterprises Holdings L.P. (1)DelawareAmerican Entertainment Properties Corp.DelawareIcahn Building LLCNevadaAREP Oil & Gas Holdings LLCDelawareAREP O&G Holdings LLCDelawareNEG Oil & Gas Sub LLCDelawareAREP Real Estate Holdings LLCDelawareAtlantic Coast Entertainment Holdings, Inc.DelawareIcahn Enterprises Onshore/Offshore Investors LLCDelawareIEH ARI Holdings LLCDelawareIEP Ferrous Brazil LLCDelawareIEH Merger Sub LLCDelawareIcahn Strategy Holding Corp.DelawareIcahn Strategy 2 LLCDelawareMeadow Star LLCDelawareIEP Energy Holding LLCDelawareIEP Energy LLCDelawareIcahn Nevada Management Corp.DelawareAEP Rail Corp.DelawareACE Nevada Corp.NevadaIEH Portland LLCDelawareAC PTC I LLCDelawareLV Fairfield Holdings LLCDelawareAREP Asset Management LLCDelawareAREP New York Holdings LLCDelawareAREH (RAY) LLCDelawareAREH Concord Holdings LLCDelawareAREH Windsor Locks LLCDelawareAEP Real Estate Holdings LLCDelawareIEH Auto Parts Holdings LLCDelawareIEH AIM LLCDelawareIEH BA LLCDelawareIEH BioPharma LLCDelawareIEH Canton Ohio LLCDelawareIEH Investment I LLCDelawareIEH Loop Road LLCDelawareIEH Sherman Drive LLCDelawareIEH Venture Investments I LLCDelawareIEP Ferrous Brazil Sub LLCDelawareIEP Parts Acquisitions LLCDelawareIcahn Nevada Gaming Acquisition LLCDelawareICM GP LLCDelawareIPH GP LLCDelawareIcahn Capital Management LPDelawareIcahn Capital LPDelawareIcahn Onshore LPDelawareIcahn Offshore LPDelawareIcahn Partners LPDelawareIcahn Agency Services LLCDelawareIEH Investments I LLCDelawareIcahn Partners Master Fund LPDelawareFederal-Mogul Holdings CorporationDelawareFederal Mogul Argentina SA.ArgentinaFederal-Mogul Plasticos Puntanos, S.A.ArgentinaFederal-Mogul Pty LtdAustraliaFederal-Mogul Automotive Pty Ltd.AustraliaFM Motorparts Pty Ltd.AustraliaFederal-Mogul S.A.BelgiumFederal-Mogul EMEA Distribution Services, BVBABelgiumFederal-Mogul Global Aftermarket EMEA BVBABelgiumCoventry Assurance, Ltd.BermudaFederal Mogul Componentes de Motores Ltda.BrazilFederal-Mogul Friction Products Sorocaba - Sistemas Automotivos Ltda.BrazilFederal-Mogul Industria de Autopecas Ltda.BrazilFederal-Mogul Sistemas Automotivos Ltda.BrazilFM Participacoes e Investimentos, LTDABrazilFederal-Mogul Canada LimitedCanadaFederal-Mogul (Changshu) Automotive Parts Co., LtdChinaFederal-Mogul (Chongqing) Friction Materials Co., Ltd.ChinaFederal-Mogul (Dalian) Co., Ltd.ChinaFederal-Mogul (Langfang) Automotive Components Co., Ltd.ChinaFederal-Mogul (Shanghai) Automotive Parts Co., Ltd.ChinaFederal-Mogul ARN (Anqing) Powder Metallurgy Co., LtdChinaFederal-Mogul Dongsuh (Qingdao) Pistons Co., Ltd.ChinaFederal-Mogul Friction Products Co. Ltd.ChinaFederal-Mogul (China) Co., Ltd..ChinaFederal-Mogul Deva (Qingdao) Automotive Parts Co., Ltd.ChinaFederal-Mogul Motorparts Management (Shanghai) Co., Ltd.ChinaFederal-Mogul Motorparts (Qingdao) Co., Ltd.ChinaFederal-Mogul Qingdao Pistons Co. Ltd.ChinaFederal-Mogul Sealing System (Nanchang) Co., Ltd.ChinaFederal-Mogul Shanghai Bearings Co., LtdChinaFederal-Mogul Shanghai Compound Material Co., Ltd.ChinaFederal-Mogul Zhengsheng (Changsha) Piston Ring Co., LTDChinaFederal-Mogul Motorparts Colombia S.A.S.ColombiaSapav Marketing Ltd.CyprusSibirica Eneergy LimitedCyprusFederal-Mogul Friction Products A.S.Czech Rep.Federal-Mogul Valvetrain s.r.oCzech Rep.Federal-Mogul Aftermarket Egypt LTDEgyptAteliers Juliette Adam SASFranceFederal Mogul Aftermarket France SASFranceFederal-Mogul Financial Services SASFranceFederal-Mogul Ignition Products SASFranceFederal-Mogul Ignition SASFranceFederal Mogul Operations France SASFranceFederal Mogul Piston Rings SASFranceFederal-Mogul Sealing System SASFranceFederal-Mogul Services SarlFranceFederal-Mogul Systems Protection SASFranceFederal-Mogul SASFranceFederal-Mogul Valvetrain La Source SASFranceFederal-Mogul Valvetrain Schirmeck SASFranceFonciere de Liberation SASFranceSaxid SASFranceFederal-Mogul Aftermarket GmbHGermanyFederal-Mogul Automotive GmbH & Co. KGGermanyFederal-Mogul Automotive Verwaltungs GmbHGermanyFederal-Mogul Betriebsgrundstücke Burscheid GmbHGermanyFederal-Mogul Bremsbelag GmbHGermanyFederal-Mogul Burscheid Beteiligungs GmbHGermanyFederal-Mogul Burscheid GmbHGermanyFederal-Mogul Deva GmbHGermanyFederal-Mogul Friction GmbHGermanyFederal-Mogul Friction Materials Germany GmbHGermanyFederal-Mogul Friction Products GmbHGermanyFederal-Mogul Friction Products International GmbHGermanyFederal-Mogul Friedberg GmbHGermanyFederal-Mogul Heinsberg GmbH (merged into Federal-Mogul Friction Products GmbH)GermanyFederal-Mogul Holding Deutschland GmbHGermanyFederal-Mogul Ignition GmbHGermanyFederal-Mogul Immobilien GmbHGermanyFederal-Mogul Nurenberg GmbHGermanyFederal-Mogul Motorparts Braking Services GmbHGermanyFederal-Mogul Powertrain Russia GmbHGermanyFederal-Mogul Sealing Systems Bretten GmbHGermanyFederal-Mogul Sealing Systems GmbHGermanyFederal-Mogul TP Europe Gmbh & Co. KGGermanyFederal-Mogul TP Piston Rings GmbHGermanyFederal-Mogul Valvetrain GmbHGermanyFederal-Mogul Vermogensverwaltungs GmbHGermanyFederal-Mogul Verwaltungs und Beteiligungs GmbHGermanyFederal-Mogul Wiesbaden GmbHGermanyGoetze Wohnungsbau GmbH .GermanyFederal-Mogul Motorparts Holding GmbH(f/k/a, Platin 966. GmbH) .GermanyFederal-Mogul de Guatemala, S.A.GuatemalaCurzon Insurance Limited.GuernseyFederal-Mogul (T&N) Hong Kong LimitedHong KongFederal-Mogul World Trade (Asia) LimitedHong KongFederal-Mogul Hungary KftHungaryFederal Mogul Wipers Hungary KftHungaryFederal-Mogul Systems Protection Hungary Kft.HungaryFederal-Mogul Anand Bearings India LimitedIndiaFederal-Mogul Anand Sealings India LimitedIndiaFederal-Mogul Ignition Products India LimitedIndiaFederal-Mogul Bearing India LimitedIndiaFederal-Mogul Goetze (India) Limited.IndiaFederal-Mogul Powertrain Solutions India Private Limited (f/k/a)Federal-Mogul PTSB India Private LimitedIndiaFederal-Mogul TPR (India) Limited.IndiaFederal-Mogul Motorparts (India) Limited (f/k/a, VSP (India) Limited)IndiaMotocare India Private LimitedIndiaF-M Motorparts Italy S.r.l.ItalyFederal-Mogul Italy S.r.l.ItalyFederal-Mogul Powertrain Italy S.r.l.ItalySaxid s.r.l.ItalyFederal Mogul Japan K.K.JapanFederal-Mogul Asia Investments Holding Korea, Ltd.KoreaKFM Bearing Co., Ltd.KoreaKFM Innovative Technology Company LimitedKoreaFederal-Mogul Luxembourg S. a. r. l.LuxembourgFederal-Mogul Holdings, Ltd.Mauritius IsF-M Holding Mexico, S.A. de C.V.MexicoFederal-Mogul de Matamoros, S.A. de C.V.MexicoFederal-Mogul de Mexico, S.A. de C.V.MexicoFederal-Mogul Distribucion de Mexico, S de RL de CVMexicoFederal-Mogul Lighting, S.A. de C.V.MexicoFederal-Mogul Juarez S de R.L. de C.V.MexicoFederal-Mogul S.A. de C.V.MexicoFederal-Mogul SP Mexico, S. de R.L. de C.V.MexicoFederal-Mogul Powertrain Mexico Distribution S de R.L. de C.V.MexicoFederal-Mogul Valve Train S. de R.L. de C.V.MexicoForjas y Maquinas, S. de R.L. de C.V.MexicoMcCord Payen de Mexico S. de R.L.MexicoProductos de Frenos Automotrices de Calidad S.A. de C.V.MexicoRaimsa, S.A. de C.V.MexicoServicios Administrativos Industriales, S.A.MexicoServicio de Componentes Automotrices, S.A. de C.A.MexicoSubensambles Internacionales, S.A. de S.V.MexicoT&N de Mexico S.de R.LMexicoFederal-Mogul Systems Protection Morocco SARL AUMoroccoCooperatief Federal-Mogul Dutch Investments B.A.NetherlandsFederal-Mogul Investments B.V.NetherlandsFederal-Mogul Motorparts Holding B.V.NetherlandsFederal-Mogul Motorparts MinorityHolding B.V.NetherlandsFederal-Mogul VCS Holding B.V.NetherlandsFederal-Mogul Motorparts Philippines, Inc.PhilippinesFederal-Mogul Bimet Spolka AkcyjnaPolandFederal-Mogul Gorzyce S.A.PolandFederal-Mogul Motorparts Poland sp.z.o.o.PolandFederal-Mogul Friction Products Ploiesti s.r.l.RomaniaFederal-Mogul Friction Services s.r.l.RomaniaFederal-Mogul Motorparts Ploiesti s.r.l..RomaniaFederal-Mogul Dimitrovgrad LLCRussiaFederal-Mogul Naberezhyne Chelny LLCRussiaFederal-Mogul Powertrain Vostok OOORussiaFederal-Mogul VCS OOORussiaTrend LLCRussiaFederal-Mogul Motorparts (Singapore) Pte. Ltd.SingaporeFederal-Mogul Singapore Investments Pte. Ltd.SingaporeFederal Mogul (Proprietary) LimitedSouth AfricaFederal Mogul Aftermarket Southern Africa (Pty) LimitedSouth AfricaFederal Mogul of South Africa (Pty) Ltd.South AfricaFederal Mogul Powertrain Systems S A (Proprietary LimitedSouth AfricaFederal-Mogul Aftermarket Espana, SASpainFederal-Mogul Friction Products Barcelona S.L.SpainFederal-Mogul Friction Products SASpainFederal-Mogul Friction Spain S.L.SpainFederal-Mogul Iberica, S.LSpainF-M Holding Daros ABSwedenFederal-Mogul Goteborg ABSwedenFederal-Mogul Holding Sweden ABSwedenFederal-Mogul GmbHSwitzerlandFederal-Mogul Motorparts Taiwan Co., LimitedTaiwanParts Zone (Thailand) Company LimitedThailandFederal-Mogul Serina Co., Ltd.ThailandFederal-Mogul (Thailand) Ltd.ThailandFederal-Mogul Motorparts (Thailand) LimitedThailandA.E. Group Machines LimitedUnited KingdomAE International LimitedUnited KingdomFederal-Mogul Aftermarket UK LimitedUnited KingdomFederal-Mogul Asia Investments LimitedUnited KingdomFederal-Mogul Bradford LimitedUnited KingdomLydmet LimitedUnited KingdomFederal-Mogul Employee Trust Administration LimitedUnited KingdomFederal-Mogul Engineering LimitedUnited KingdomFederal-Mogul Friction Products LimitedUnited KingdomFederal-Mogul Global Growth LimitedUnited KingdomFederal-Mogul UK Powertrain LimitedUnited KingdomPayen International LimitedUnited KingdomFederal-Mogul Sintered Products LimitedUnited KingdomFederal-Mogul Technology LimitedUnited KingdomFederal Mogul UK Powertrain LimitedUnited KingdomFederal-Mogul Valvetrain LimitedUnited KingdomFerodo LimitedUnited KingdomF-M Motorparts LimitedUnited KingdomF-M Trademarks LimitedUnited KingdomLeeds Piston Ring & Engineering Co. Ltd.United KingdomSintration LimitedUnited KingdomFDML Holdings LimitedUnited KingdomFederal-Mogul UK Investments LimitedUnited KingdomFederal-Mogul LimitedUnited KingdomLydmet LimitedUnited KingdomPiston Rings (UK) Ltd.United KingdomSaxid LimitedUnited KingdomT&N Shelf Twenty-Six LimitedUnited KingdomWellworthy LimitedUnited KingdomFederal-Mogul Finance 1, LLCDelawareCarter Automotive Company, Inc.DelawareFederal-Mogul CorporationDelawareFederal-Mogul Finance 2, LLCDelawareFederal-Mogul Global LLCDelawareFederal-Mogul Ignition CompanyDelawareFederal-Mogul Piston Rings, Inc.DelawareFederal-Mogul Powertrain IP, LLCDelawareFederal-Mogul Risk Advisory Serivces LLCDelawareFederal-Mogul Transaction LLCDelawareFederal-Mogul Motorparts CorporationDelawareFederal-Mogul Valve Train International LLCDelawareFerodo America, Inc.DelawareF-M Motorparts TSC, Inc.DelawareF-M TSC Real Estate Holdings LLCDelawareFelt Products Mfg. Co.DelawareFM International, LLCDelawareGasket Holdings Inc.DelawareMuzzy-Lyon Auto Parts, Inc.DelawareT&N Industries Inc.DelawareFederal-Mogul Chassis LLCDelawareFederal-Mogul Powertrain LLC.MichiganFederal-Mogul World Wide, Inc.MichiganSpeyside Real Estate, Inc.MichiganFederal-Mogul Products, Inc.MissouriFederal-Mogul Sevierville, Inc.TennesseeFederal-Mogul (Vietnam) LtdVietnamIEH Auto Parts LLCDelawareCVR Energy Inc.DelawareCoffeyville Refining & Marketing Holdings, Inc.DelawareCoffeyville Refining & Marketing, Inc.DelawareCoffeyville Nitrogen Fertilizers, Inc.DelawareCoffeyville Crude Transportation, Inc.DelawareCoffeyville Terminal, Inc.DelawareCoffeyville Pipeline, Inc.DelawareCL JV Holdings, LLCDelawareCoffeyville Resources, LLCDelawareCoffeyville Resources Refining & Marketing, LLCDelawareCoffeyville Resources Crude Transportation, LLCDelawareCoffeyville Resources Terminal, LLCDelawareCoffeyville Resources Pipeline, LLCDelawareCVR GP, LLCDelawareCVR Partners, LPDelawareCoffeyville Resources Nitrogen Fertilizers, LLCDelawareCoffeyville Finance Inc.DelawareWynnewood Energy Company, LLCDelawareWynnewood Refining Company, LLCDelawareCVR Refining Holdings, LLCDelawareCVR Refining Holdings Sub, LLCDelawareCVR Refining, LLCDelawareWynnewood Insurance CorporationHawaiiCVR Refining, LPDelawareCVR Refining GP, LLCDelawareTropicana Entertainment, Inc.DelawareTropicana Atlantic City Corp.New JerseyTropicana AC Sub Corp.New JerseyNew Tropicana Holdings, Inc.DelawareNew Tropicana OpCo, Inc.DelawareAztar Riverboat Holding Company, LLCIndianaAztar Indiana Gaming Company, LLCIndianaNew Jazz Enterprises, L.L.C.NevadaCatfish Queen Partnership in CommendamLouisianaCentroplex Centre Convention Hotel, L.L.C.LouisianaColumbia Properties Tahoe, LLCNevadaMB Development, LLCNevadaTropicana Laughlin, LLCNevadaLighthouse Point, LLCMississippiTropicana Ent. Cayman Holdings Co. LtdCayman IslandsAruba Development Corp VBAArubaTropicana Aruba Casino Operating Co. N.V.ArubaTropicana Aruba Resort Operating Corp. VBAArubaTropicana St. Louis, LLCDelawareTEI (STLH), LLCDelawareTEI (ES), LLCDelawareTEI (St. Louis) RE, LLCDelawareTLH LLCDelawareSE Inlet Properties LLCDelawareTropWorld Games LLCNevadaTEI R7 Investment LLCDelawareAmerican Railcar Industries, Inc.North DakotaARI Fleet Services of Canada, Inc.CanadaARI Component Venture LLCDelawareARI Longtrain, Inc.DelawareLongtrain Leasing I, LLCDelawareLongtrain Leasing II, LLCDelawareLongtrain Leasing III, LLC (Formed January 7, 2015)DelawareCastings LLCDelawareBlue Lagoon Realty, LLCDelawareARI Railcar Services, LLCDelawareSouthwest Steel Casting Company, LLCTexasARI Property Bude, LLCDelawareARI Property Brookhaven, LLCDelawareARI Property Goodrich, LLCDelawareARI Longview, LLCDelawareARI Mobile Repair Services, LLCDelawareARI Property North Kansas, LLCDelawareARI Property Tennille, LLCDelawareSouthwest Steel Property, LLCDelawareAmerican Railcar Leasing, LLCDelawareAmerican Railcar Leasing Canada LimitedDelawareARI First LLCDelawareARI Second LLCDelawareARI Third LLCDelawareARL II Funding LLCDelawareARL Lease Administrators LLCDelawareShippers Third LLCDelawareARL Fifth LLCDelawareAEP Leasing LLCDelawareNCF I LLCDelawareNCF II LLCDelawareNCF III LLCDelawareRCF 2014 LLCDelawareARL Second LLCDelawareFerrous LimitedIsle of ManFerrous Resources LimitedUnited KingdomMediterranean Iron LimitedMaltaAtlantic Iron SarlLuxembourgFerrous Resources Do Brasil S.A.BrazilEmpresa de Mineracao Esperanca S.A.BrazilMineracao Jacuipe LtdaBrazilViskase Companies, IncDelawareWSC Corp.DelawareViskase Films, Inc.DelawareViskase del Norte, S.A. de C.V.MexicoServicos Viskase del Norte, S.A. de C.V.MexicoViskase S.A.S.FranceViskase SpAItalyViskase GmbhGermanyViskase Polska SP.ZO.OPolandViskase Brasil Embalagens LtdaBrazilViskase Asia Pacific CorpPhilippinesViskase Sales Philippines Inc.PhilippinesPSC Metals Inc.OhioM W Recycling, LLCOhioTAP USA, LLCOhioPSC Metals - Mitco, LLCOhioCarbon Plate Steel Products, LLCOhioPSC Metals - Knoxville, LLCOhioPSC Metals - Joyce, LLCOhioPSC Metals - CAW, LLCOhioPSC Metals - Alliance, LLCOhioPSC Metals - Elyria, LLCOhioPSC Metals - Garn, LLCOhioPSC Metals - Aliquippa, LLCOhioPSC Metals - Wooster, LLCOhioPSC Metals - Metallics, LLCOhioPSC Metals - Akron, LLCOhioPSC Metals - Massillon, LLCOhioPSC Metals - Newark, LLCOhioPSC Metals - Beaver Falls, LLCOhioPSC Metals - Canton, LLCOhioPSC Metals - Chattanooga, LLCOhioPSC Metals - Rockwood, LLCOhioPSC Metals - St. Louis, LLCOhioPSC Metals - South Knoxville, LLCOhioPSC Metals - New York, LLCNew YorkPSC Metals - D&L, LLCPennsylvaniaCAPPCO Tubular Products Canada, Inc.CanadaCAPPCO Tubular Products USA, LLCGeorgiaVero Beach Acquisition LLCDelawareVero Beach Acquisition II LLCDelawareAREP Florida Holdings LLCDelawareNew Seabury Real Estate Holdings LLCDelawareIEP RESI LLCDelawareIEP Peachtree LLCDelawareIEP Dallas LLCDelawareAREH Hudson Street LLCDelawareGH Vero Beach Development LLCDelawareGrand Harbor North Land LLCDelawareVero Beach Title & Escrow Company LLCDelawareRiver Village Tower IDelawareRiver Village Tower IIDelawareRiver Village Tower IIIDelawareRiver Village Tower IVDelawareRiver Village Tower VDelawareVB Community Management LLC - New for residential property management in Vero BeachDelawareGH Vero Holdings LLCDelawareBayswater Falling Waters LLCDelawareBayswater Development LLCDelawareNew Seabury Private Sewer Treatment Facility LLCDelawareBayswater Brokerage Mass. LLCDelawareNew Seabury Properties L.L.C.DelawareGrand Harbor Management LLCDelawareGrand Harbor Golf Club LLCDelawareOak Harbor Golf Club LLCDelawareOH Somerset ALF LLCDelawareGHG Asset Management LLCDelawareOHG Asset Management LLCDelawareOak Harbor Assisted Living Facility LLCDelawareIEH GH Management LLCDelawareNew Seabury Golf Club LLCDelawareNS Beach Club LLCDelawareWestpoint Home LLCDelawareWestPoint Home Netherlands Holding, LLCDelawareWestPoint Home (Netherlands) CoopertiefNetherlandsWestPoint Home Asia Ltd.British Virgin IslandsWestPoint Pakistan LLCDelawareWP IP, LLCNevadaWP Trademarks, LLCDelawareWP Property Holdings I, LLCDelawareWP Property Holdings II, LLCDelawareWestPoint Home Stores, LLCDelawareWP Sales, Inc.DelawareWPH - Nostalgia LLCDelawareWP Properties Lanier/Carter, LLCDelawareWP Properties Lumberton, LLCDelawareWP Properties Wagram, LLCDelawareWP Properties Clemson, LLCDelawareWP Properties Wagram Facility, LLCDelawareWestPoint Home (Netherlands) B.V.NetherlandsWestPoint Home (Bahrain) W.L.L.BahrainWestPoint Home (Bahrain) W.L.L.BahrainWestPoint Home (Shanghai) Inc.China(1) Icahn Enterprises Holdings L.P. is a 99% owned subsidiary of Icahn Enterprises L.P. All other subsidiaries listed above are subsidiaries of Icahn Enterprises Holdings L.P. and therefore arealso subsidiaries of Icahn Enterprises L.P.EXHIBIT 23.1CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMWe have issued our reports dated February 29, 2016 , with respect to the consolidated financial statements, schedule and internal control over financial reporting ofIcahn Enterprises L.P. and subsidiaries included in the joint Annual Report of Icahn Enterprises L.P. and Icahn Enterprises Holdings L.P. on Form 10-K for theyear ended December 31, 2015 . We consent to the incorporation by reference of said reports in the Registration Statement of Icahn Enterprises L.P. andsubsidiaries on Form S-3 (File No. 333-188360)./s/GRANT THORNTON LLPNew York, New YorkFebruary 29, 2016EXHIBIT 31.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICERPursuant to Section 302(a) of the Sarbanes Oxley Act of 2002 andRule 13a-14(a) of the Securities Exchange Act of 1934I, Keith Cozza, certify that:1. I have reviewed this joint annual report on Form 10-K of Icahn Enterprises L.P. and Icahn Enterprises Holdings L.P. for the year ended December 31, 2015; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statementsmade, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in ExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant andwe have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensurethat material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularlyduring the period in which this report is being prepared;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in the report our conclusions about the effectiveness ofthe disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; andd) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscalquarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, theregistrant's internal control over financial reporting.5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely toadversely affect the Registrant's ability to record, process, summarize and report financial information; andb) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control overfinancial reporting. /s/Keith CozzaKeith CozzaPresident and Chief Executive Officer of Icahn Enterprises G.P. Inc., thegeneral partner of Icahn Enterprises L.P. and Icahn Enterprises HoldingsL.P.Date: February 29, 2016EXHIBIT 31.2 CERTIFICATION OF CHIEF FINANCIAL OFFICERPursuant to Section 302(a) of the Sarbanes Oxley Act of 2002 andRule 13a-14(a) of the Securities Exchange Act of 1934I, SungHwan Cho, certify that:1. I have reviewed this joint annual report on Form 10-K of Icahn Enterprises L.P. and Icahn Enterprises Holdings L.P. for the year ended December 31, 2015;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statementsmade, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in ExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant andwe have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensurethat material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularlyduring the period in which this report is being prepared;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in the report our conclusions about the effectiveness ofthe disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; andd) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscalquarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, theregistrant's internal control over financial reporting.5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely toadversely affect the Registrant's ability to record, process, summarize and report financial information; andb) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control overfinancial reporting. /s/SungHwan ChoSungHwan ChoChief Financial Officer and Director of Icahn Enterprises G.P. Inc., thegeneral partner of Icahn Enterprises L.P. and Icahn Enterprises HoldingsL.P.Date: February 29, 2016EXHIBIT 32.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICERPursuant to Section 906 of the Sarbanes Oxley Act of 2002 (18 U.S.C. 1350) andRules 13a-14(b) of the Securities Exchange Act of 1934In connection with the joint annual report on Form 10-K of Icahn Enterprises L.P. and Icahn Enterprises Holdings L.P., for the year ended December 31, 2015, the undersigned certify that, to the best of his knowledge, based upon a review of the Icahn Enterprises L.P. and Icahn Enterprises Holdings L.P. joint annualreport on Form 10-K for the year ended December 31, 2015 : (1) The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (2) The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the registrant. /s/Keith CozzaKeith CozzaPresident and Chief Executive Officer of Icahn Enterprises G.P. Inc., thegeneral partner of Icahn Enterprises L.P. and Icahn Enterprises HoldingsL.P.Date: February 29, 2016/s/SungHwan ChoSungHwan ChoChief Financial Officer of Icahn Enterprises G.P. Inc., the general partnerof Icahn Enterprises L.P. and Icahn Enterprises Holdings L.P.Date: February 29, 2016

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