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Icahn Enterprises L.P. Reports Full Year And Fourth Quarter 2012 Financial Results

EBITDA, Adjusted EBITDA, EBIT and Adjusted EBIT are not measurements of our financial performance under U.S. GAAP and should not be considered as alternatives to net income or any other performance measures 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, Adjusted EBITDA, EBIT and Adjusted EBIT only as a supplemental measure of our financial performance.

Use of Indicative Net Asset Value Data

The Company uses the indicative net asset value of the depository units as an additional method for considering the value of the units, and we believe that this information can be helpful to investors. Please note, however, that the indicative net asset value of the units does not represent the market price at which the units trade. Accordingly, data regarding indicative net asset value is of limited use and should not be considered in isolation.

The Company's depository units are not redeemable, which means that investors have no right or ability to obtain from the Company the indicative net asset value of units that they own. Units may be bought and sold on The NASDAQ Global Select Market at prevailing market prices. Those prices may be higher or lower than the indicative net asset value of the units as calculated by Management. 

See below for more information on how we calculate the indicative net asset value of the Company's depository units.

($ in millions) Three Months Ended December 31 Twelve Months Ended December 31
  2012 2011 2012   2011
Consolidated Adjusted EBITDA:    
Net income  $ 66  $ 636  $ 727  $ 1,764
Interest expense, net  135  109  512  436
Income tax (benefit) expense  (59)  (21)  (81)  34
Depreciation and amortization  157  104  548  410
Consolidated EBITDA  $ 299    $ 828  $ 1,706    $ 2,644
Impairment of assets  42  68  129  71
Restructuring costs  9  2  31  11
Non-Service cost US based pensions  12  6  38  25
OPEB curtailment gains  --   (1)  (51)  (1)
Unfavorable FIFO impact  13  --   71  -- 
Unrealized (gain)/loss on derivatives  (49)  --   68  -- 
Stock-based compensation  12  1  38  -- 
Major scheduled turnaround expense  94  --   107  -- 
Other  20  4  40  -- 
Consolidated Adjusted EBITDA  $ 452    $ 908  $ 2,177    $ 2,750
   
IEP Adjusted EBITDA:  
Net income attributable to IEP  $ 6  $ 260  $ 396  $ 750
Interest expense, net  117  94  456  377
Income tax (benefit) expense  (71)  (18)  (128)  27
Depreciation and amortization  125  78  434  309
EBITDA attributable to IEP  $ 177     $ 414  $ 1,158    $ 1,463
Impairment of assets  38  56  106  58
Restructuring costs  8  2  25  9
Non-Service cost US based pensions  9  4  29  18
OPEB curtailment gains  --   (1)  (40)  (1)
Unfavorable FIFO impact  11  --   58  -- 
Unrealized (gain)/loss on derivatives  (40)  --   56  -- 
Stock-based compensation  9  --   30  -- 
Major scheduled turnaround expense  77  --   88  -- 
Other  16  2  31  -- 
Adjusted EBITDA attributable to IEP  $ 305    $ 477  $ 1,541  $ 1,547
     
($ in millions) Three Months Ended December 31, Twelve Months Ended December 31,
  2012 2011 2012 2011
Consolidated Adjusted EBIT:  
Net income  $ 66  $ 636  $ 727  $ 1,764
Interest expense, net  135  109  512  436
Income tax (benefit) expense  (59)  (21)  (81)  34
Consolidated EBIT  $ 142  $ 724  $ 1,158  $ 2,234
Impairment of assets  42  68  129  71
Restructuring costs  9  2  31  11
Non-Service cost US based pensions  12  6  38  25
OPEB curtailment gains  --   (1)  (51)  (1)
Favorable FIFO impact  13  --   71  -- 
Unrealized (gain)/loss on derivatives  (49)  --   68  -- 
Stock-based compensation  12  1  38  -- 
Major scheduled turnaround expense  94  --   107  -- 
Other  20  4  40  -- 
Consolidated Adjusted EBIT  $ 295  $ 804  $ 1,629  $ 2,340
   
IEP Adjusted EBIT:  
Net income attributable to IEP  $ 6  $  260  $ 396  $ 750
Interest expense, net  117  94  456  377
Income tax (benefit) expense  (71)  (18)  (128)  27
EBIT attributable to IEP  $ 52  $ 336  $ 724  $ 1,154
Impairment of assets  38  56  106  58
Restructuring costs  8  2  25  9
Non-Service cost US based pensions  9  4  29  18
OPEB curtailment gains  --   (1)  (40)  (1)
Favorable FIFO impact  11  --   58  -- 
Unrealized (gain)/loss on derivatives  (40)  --   56  -- 
Stock-based compensation  9  --   30  -- 
Major scheduled turnaround expense  77  --   88  -- 
Other  16  2  31  -- 
Adjusted EBIT attributable to IEP  $ 180  $ 399  $ 1,107  $ 1,238
     
Indicative Net Asset Value Calculation    
     
($ in millions, except per unit) December 31, 2012 March 13, 2013
     
Market-valued Subsidiaries:    
Holding Company interest in Funds (1) $2,387 $2,671
CVR Energy (2) 3,474 3,890
CVR Refining (3) ---- 130
Federal-Mogul (2) 615 482
American Railcar Industries (2) 377 545
Total market-valued subsidiaries $6,853 $7,718
     
Other Subsidiaries    
Tropicana (4) (6) $488 $488
Viskase (4) (6) 268 268
Real Estate Holdings (5) (6) 763 763
PSC Metals (5) (6) 338 338
WestPoint Home (5) (6) 256 256
Total - other subsidiaries $2,113 $2,113
Add:  Holding Company cash and cash equivalents (7) 1,047 1,537
Less: Holding Company debt (8) (4,082) (4,082)
Add: Other Holding Company net assets (9) 63 63
Indicative Net Asset Value $5,993 $7,348
     
Units Outstanding 107.0 110.2
Indicative Net Asset Value Per Unit $56 $67
     
Market Price per IEP Unit $44.70 $60.58

Indicative net asset value does not purport to reflect a valuation of IEP. A valuation is a subjective exercise and indicative net asset value does not consider all elements or consider in the adequate proportion the elements that would affect IEP. Investors may reasonably differ on what such elements are and their impact on IEP. No representation or assurance, express or implied is made as to the accuracy and correctness of indicative net asset value as of these dates or with respect to any future indicative or prospective results which may vary.

(1) Fair market value of Holding Company's interest in the Funds and Investment segment cash as of each respective date.

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