Net Income Per LP Unit.

Basic income (loss) per LP unit is based on net income or loss attributable to Icahn Enterprises allocable to limited partners after deducting preferred pay-in-kind distributions to preferred unitholders. Net income 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 basic income (loss) adjusted for interest charges applicable to the variable rate notes and earnings before the preferred pay-in-kind distributions as well as the weighted-average number of units and equivalent units outstanding. Prior to their redemption on March 31, 2010, the preferred units were considered to be equivalent units for the purpose of calculating income or loss per LP unit.

On April 29, 2011, the board of directors declared a quarterly distribution of $0.50 per depositary unit, comprised of a combination of $0.10 payable in cash and $0.40 payable in depositary units. The distribution was paid on May 31, 2011 to depositary unitholders of record at the close of business on May 16, 2011. We calculated the depositary units to be distributed based on the 20-trading day volume weighted average price of our depositary units ending on May 3, 2011, resulting in .009985 of a unit being distributed per depositary unit. To the extent that the aggregate units distributed to any holder included a fraction of a unit, that fractional unit was settled in cash. As a result, we distributed 843,295 depositary units on May 31, 2011 in connection with this distribution. We have retroactively adjusted our prior period net income per LP unit to reflect the revised LP units outstanding in accordance with U.S. GAAP.

Additionally, as more fully described in Note 19, "Subsequent Events," we distributed an aggregate 13,590,238 depositary units in January 2012 in connection with a rights offering.

The following table sets forth the allocation of net (loss) income attributable to Icahn Enterprises allocable to limited partners and the computation of basic and diluted (loss) income per LP unit for the periods indicated:



	Year Ended December 31
	2011		2010			2009
	(in millions, except per unit data)
Net income attributable to Icahn Enterprises from continuing operations	$	750	$	200		$	252
Less: income from common control acquisitions allocated 100% to the general partner	—		—			(19		)
	750		200			233

Income attributable to Icahn Enterprises from continuing operations allocable to limited partners (98.01% allocation)	$	735	$	196		$	228
(Loss) income attributable to Icahn Enterprises from discontinued operations allocable to limited partners (98.01% allocation)	$	—	$	(1	)	$	1

Basic income (loss) per LP unit:
Continuing operations	$	8.55	$	2.33		$	3.00
Discontinued operations	0.00		(0.01		)	0.01
	$	8.55	$	2.32		$	3.01
Basic weighted average LP units outstanding	86		84			76

Dilutive effect of variable rate convertible notes:
Income	$	23	$	—		$	—
Units	5		—			—

Dilutive effect of redemption of preferred units⁽¹⁾:
Income	$	—	$	2		$	6
Units	—		1			4

Diluted income (loss) per LP unit:
Continuing operations	$	8.33	$	2.33		$	2.93
Discontinued operations	0.00		(0.01		)	0.01
	$	8.33	$	2.32		$	2.94
Diluted weighted average LP units outstanding	91		85			80

⁽¹⁾Our preferred units were redeemed on March 31, 2010.

As their effect would have been anti-dilutive, 5 million equivalent units of our variable rate convertible notes have been excluded from the diluted weighted average LP units outstanding for each of fiscal 2010 and fiscal 2009.

As a result of our unit distribution on May 31, 2011, we restated prior years' income per LP unit to reflect the increase in weighted average LP units outstanding for all comparative periods. The effect on income per LP unit was a reduction of $0.03 and $0.04 per depositary unit for fiscal 2010 and fiscal 2009, respectively.