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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | 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, |  |
| 2019 |  | 2018 |  | 2019 |  | 2018
| (in millions) |  |  |  |  | (in millions) |  |  |
Book basis of net assets | $ | 5,456 |  |  | $ | 6,560 |  |  | $ | 5,453 |  |  | $ | 6,588 |
Book/tax basis difference | (1,397) |  |  | (1,940) |  |  | (1,397) |  |  | (1,940) |
Tax basis of net assets | $ | 4,059 |  |  | $ | 4,620 |  |  | $ | 4,056 |  |  | $ | 4,648 |
Income (loss) from continuing operations before income tax expense (benefit) is as follows:
| Year Ended December 31, |  |  |  |
| 2019 |  | 2018 |  | 2017
| (in millions) |  |  |  |
Domestic | $ | (1,765) |  |  | $ | 235 |  |  | $ | 1,836 |
International | 26 |  |  | (12) |  |  | 30 |
| $ | (1,739) |  |  | $ | 223 |  |  | $ | 1,866 |
Income tax benefit (expense) attributable to continuing operations is as follows:
| Year Ended December 31, |  |  |  |
| 2019 |  | 2018 |  | 2017
| (in millions) |  |  |  |
Current: |  |  |  |  |  |
Domestic | $ | (106) |  |  | $ | (11) |  |  | $ | (15) |
International | (3) |  |  | (4) |  |  | (13) |
Total current | (109) |  |  | (15) |  |  | (28) |
Deferred: |  |  |  |  |
Domestic | 87 |  |  | 30 |  |  | 547 |
International | 2 |  |  | (1) |  |  | 13 |
Total deferred | 89 |  |  | 29 |  |  | 560 |
| $ | (20) |  |  | $ | 14 |  |  | $ | 532 |
A reconciliation of the income tax benefit (expense) calculated at the federal statutory rate to income tax benefit (expense) on continuing operations as shown in the consolidated statements of operations is as follows:
| Year Ended December 31, |  |  |  |
| 2019 |  | 2018 |  | 2017
| (in millions) |  |  |  |  |
Income tax benefit (expense) at U.S. statutory rate | $ | 365 |  |  |  | $ | (47) |  |  |  | $ | (653) |
Tax effect from: |  |  |  |  |
Valuation allowance | (63) |  |  |  | (4) |  |  |  | 529 |
Non-controlling interest | (4) |  |  | 26 |  |  | (6) |
Goodwill impairment | — |  |  | (18) |  |  | — |
Stock dispositions | — |  |  |  | 69 |  |  |  | — |
Income not subject to taxation | (314) |  |  |  | 14 |  |  |  | 220 |
Enactment of U.S. tax legislation, net of valuation allowance | — |  |  | — |  |  | 392 |
Other | (4) |  |  |  | (26) |  |  |  | 50 |
Income tax benefit (expense) | $ | (20) |  |  |  | $ | 14 |  |  |  | $ | 532 |
The tax effect of significant differences representing deferred tax assets (liabilities) (the difference between financial statement carrying value and the tax basis of assets and liabilities) is as follows:
| December 31, |  |
| 2019 |  | 2018
| (in millions) |  |
Deferred tax assets: |  |  |
Property, plant and equipment | $ | 17 |  |  | $ | 17 |
Net operating loss | 791 |  |  | 791 |
Tax credits | 29 |  |  | 46 |
Capital loss | 155 |  |  | 50 |
Leases | 133 |  |  | — |
Other | 71 |  |  | 82 |
Total deferred tax assets | 1,196 |  |  | 986 |
Less: Valuation allowance | (619) |  |  | (518) |
Net deferred tax assets | $ | 577 |  |  | $ | 468 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | $ | (125) |  |  | $ | (129) |
Intangible assets | (37) |  |  | (33) |
Investment in partnerships | (652) |  |  | (699) |
Investment in U.S. subsidiaries | (184) |  |  | (184) |
Leases | (125) |  |  | — |
Other | (61) |  |  | (79) |
Total deferred tax liabilities | (1,184) |  |  | (1,124) |
| $ | (607) |  |  | $ | (656) |
We recorded deferred tax assets and deferred tax liabilities of $32 million and $639 million, respectively, as of December 31, 2019 and $38 million and $694 million, respectively, as of December 31, 2018. 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. Projected future income, tax planning strategies and the expected reversal of deferred tax liabilities are considered in making this assessment. As of December 31, 2019 we had a valuation allowance of approximately $619 million primarily related to tax loss and credit carryforwards and other deferred tax assets. The current and future provisions for income taxes may be significantly impacted by changes to valuation allowances. These allowances will be maintained until it is more likely than not that the deferred tax assets will be realized. For the year ended December 31, 2019, the valuation allowance on deferred tax assets increased by $101 million. The increase was primarily attributable to capital loss and state net operating loss carryforwards. At December 31, 2019, American Entertainment Properties Corp. (“AEPC”), a wholly-owned corporate subsidiary of Icahn Enterprises and Icahn Enterprises Holdings, which includes all or parts of our Automotive, Metals, Home Fashion and Real Estate segments had U.S federal net operating loss carryforwards of approximately $2.0 billion with expiration dates from 2029 through 2037. At December 31, 2019, CVR Energy had state income tax credits of $16 million, which are available to reduce future state income taxes. These credits can be carried forward indefinitely. At December 31, 2019, Viskase had U.S. federal net operating loss carryforwards of $58 million which will begin expiring in the year 2024 and forward, and foreign net operating loss carryforwards of $40 million with unlimited carryforward period and $5 million with a five-year carryforward period. On August 1, 2018, CVR Energy completed an exchange offer whereby CVR Refining’s public unitholders tendered a total of 21,625,106 common units of CVR Refining in exchange for 13,699,549 shares of CVR Energy common stock. As a result of the exchange offer, AEPC owned less than 80% of the common stock of CVR Energy and CVR Energy deconsolidated from the AEPC consolidated federal income tax group. Beginning with the tax period after the exchange, CVR Energy became the parent of a new consolidated group for U.S. federal income tax purposes and will file and pay its federal income tax obligations directly to the Internal Revenue Service. As of December 31, 2019, we have not provided taxes on approximately $61 million of undistributed earnings in foreign subsidiaries which are deemed to be indefinitely reinvested. If at some future date these earnings cease to be permanently reinvested, we may be subject to foreign income and withholding taxes upon repatriation of such amounts. An estimate of the tax liability that would be incurred upon repatriation of foreign earnings is not practicable to determine. Enactment of U.S. Tax Legislation In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of The Tax Legislation. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. We report additional tax from the GILTI inclusion as incurred and currently estimate no additional tax due in 2019. Under the Tax Legislation, an entity must pay a Base Erosion Anti-Abuse Tax (“BEAT”) if the BEAT is greater than its regular tax liability. We currently estimate no additional tax due in 2018 pursuant to the BEAT provisions. Accounting for Uncertainty in Income Taxes A summary of the changes in the gross amounts of unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 are as follows:
| Year Ended December 31, |  |  |  |
| 2019 |  | 2018 |  | 2017
| (in millions) |  |  |  |  |
Balance at January 1 | $ | 34 |  |  | $ | 34 |  |  | $ | 52 |
Addition based on tax positions related to the current year | 2 |  |  | — |  |  | — |
Increase for tax positions of prior years | — |  |  | 6 |  |  | — |
Decrease for tax positions of prior years | — |  |  | — |  |  | (3) |
Decrease for statute of limitation expiration | (3) |  |  | (6) |  |  | (15) |
Balance at December 31 | $ | 33 |  |  | $ | 34 |  |  | $ | 34 |
At December 31, 2019, 2018 and 2017, we had unrecognized tax benefits of $33 million, $34 million and $34 million, respectively. Of these totals, $27 million, $30 million and $28 million represent the amount of unrecognized tax benefits that if recognized, would affect the annual effective tax rate in the respective periods. The total unrecognized tax benefits differ from the amount which would affect the effective tax rate primarily due to the impact of valuation allowances. During the next 12 months, CVR Energy believes that it is reasonably possible that unrecognized tax benefits of CVR Energy may decrease by approximately $3 million due to statute expirations. We do 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 $1 million, $1 million and $2 million as of December 31, 2019, 2018 and 2017, respectively, in liabilities for tax related net interest and penalties in our consolidated balance sheets. Income tax (benefit) expense related to interest and penalties were $0 million, $(1) million and $(7) million for the years December 31, 2019, 2018 and 2017, 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 2015 or state and local examinations for years before 2013, with limited exceptions.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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