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Business Segments
9 Months Ended
Sep. 30, 2011
Business Segments [Abstract] 
Business Segments
 
(16)   Business Segments
 
The Company measures segment profit as operating income for Petroleum and Nitrogen Fertilizer, CVR’s two reporting segments, based on the definitions provided in ASC Topic 280 — Segment Reporting. All operations of the segments are located within the United States.
 
Petroleum
 
Principal products of the Petroleum Segment are refined fuels, propane and petroleum refining by-products including pet coke. The Petroleum Segment sells the pet coke to the Partnership for use in the manufacture of nitrogen fertilizer at the adjacent nitrogen fertilizer plant in accordance with a pet coke supply agreement. For the Petroleum Segment, a per-ton transfer price is used to record intercompany sales on the part of the Petroleum Segment and a corresponding intercompany cost of product sold (exclusive of depreciation and amortization) is recorded for the Nitrogen Fertilizer Segment. The price the Nitrogen Fertilizer Segment pays pursuant to the pet coke supply agreement is based on the lesser of a pet coke price derived from the price received for UAN, or the UAN-based price, and a pet coke price index. The UAN-based price begins with a pet coke price of $25 per ton based on a price per ton for UAN (exclusive of transportation cost), or netback price, of $205 per ton, and adjusts up or down $0.50 per ton for every $1.00 change in the netback price. The UAN-based price has a ceiling of $40 per ton and a floor of $5 per ton. The intercompany transactions are eliminated in the Other Segment. Intercompany sales included in Petroleum Segment net sales were approximately $3.9 million and $1.4 million for the three months ended September 30, 2011 and 2010, respectively. Intercompany sales included in Petroleum Segment net sales were approximately $8.8 million and $3.6 million for the nine months ended September 30, 2011 and 2010, respectively.
 
The Petroleum Segment recorded intercompany cost of product sold (exclusive of depreciation and amortization) for the hydrogen purchases (sales) described below under “Nitrogen Fertilizer” for the three months ended September 30, 2011 and 2010 of approximately $5.5 million and $(0.6 million), respectively. For the nine months ended September 30, 2011 and 2010, the Petroleum Segment recorded intercompany cost of product sold (exclusive of depreciation and amortization) for the hydrogen purchases (sales) of approximately $10.8 million and $(1.8 million), respectively.
 
Nitrogen Fertilizer
 
The principal product of the Nitrogen Fertilizer Segment is nitrogen fertilizer. Intercompany cost of product sold (exclusive of depreciation and amortization) for the pet coke transfer described above was approximately $3.4 million and $2.3 million for the three months ended September 30, 2011 and 2010, respectively. Intercompany cost of product sold (exclusive of depreciation and amortization) for the pet coke transfer described above was approximately $7.0 million and $3.3 million for the nine months ended September 30, 2011 and 2010, respectively.
 
Pursuant to the feedstock agreement, the Company’s segments have the right to transfer excess hydrogen to one another. Sales of hydrogen to the Petroleum Segment have been reflected as net sales for the Nitrogen Fertilizer Segment. Receipts of hydrogen from the Petroleum Segment have been reflected in cost of product sold (exclusive of depreciation and amortization) for the Nitrogen Fertilizer Segment. The Nitrogen Fertilizer Segment recorded cost of product sold (exclusive of depreciation and amortization) from intercompany hydrogen purchases of $0.3 million and approximately $1.0 million for the three and nine months ended September 30, 2011, respectively. For the three and nine months ended September 30, 2011, the Nitrogen Fertilizer Segment recorded net sales generated from intercompany sales of hydrogen to the Petroleum Segment of approximately $5.7 million and $11.8 million, respectively. For the three and nine months ended September 30, 2010, the Nitrogen Fertilizer Segment recorded costs of product sold (exclusive of depreciation and amortization) from intercompany hydrogen purchases of approximately $0.6 million and $1.8 million, respectively.
 
Other Segment
 
The Other Segment reflects intercompany eliminations, cash and cash equivalents, all debt related activities, income tax activities and other corporate activities that are not allocated to the operating segments.
 
                                 
    Three Months Ended
 		    Nine Months Ended
 		 
    September 30,     September 30,  
    2011     2010     2011     2010  
          (in thousands)        
 
Net sales
                               
Petroleum
  $ 1,284,407     $ 986,192     $ 3,772,348     $ 2,794,210  
Nitrogen Fertilizer
    77,203       46,426       215,253       141,057  
Intersegment eliminations
    (9,646 )     (1,444 )     (20,656 )     (3,683 )
                                 
Total
  $ 1,351,964     $ 1,031,174     $ 3,966,945     $ 2,931,584  
                                 
Cost of product sold (exclusive of depreciation and amortization)
                               
Petroleum
  $ 1,024,509     $ 879,008     $ 3,077,555     $ 2,560,109  
Nitrogen Fertilizer
    10,901       10,794       28,138       27,651  
Intersegment eliminations
    (9,370 )     48       (19,456 )     (3,368 )
                                 
Total
  $ 1,026,040     $ 889,850     $ 3,086,237     $ 2,584,392  
                                 
Direct operating expenses (exclusive of depreciation and amortization)
                               
Petroleum
  $ 54,510     $ 35,309     $ 143,974     $ 114,843  
Nitrogen Fertilizer
    20,083       17,225       65,373       60,732  
Other
    22       —       (91 )     —  
                                 
Total
  $ 74,615     $ 52,534     $ 209,256     $ 175,575  
                                 
Insurance recovery — business interruption
                               
Petroleum
  $ —     $ —     $ —     $ —  
Nitrogen Fertilizer
    (490 )     —       (3,360 )     —  
Other
    —       —       —       —  
                                 
Total
  $ (490 )   $ —     $ (3,360 )   $ —  
                                 
Depreciation and amortization
                               
Petroleum
  $ 16,990     $ 16,920     $ 50,872     $ 49,472  
Nitrogen Fertilizer
    4,663       4,526       13,948       13,862  
Other
    372       497       1,259       1,422  
                                 
Total
  $ 22,025     $ 21,943     $ 66,079     $ 64,756  
                                 
Operating income (loss)
                               
Petroleum
  $ 179,815     $ 46,584     $ 469,042     $ 44,135  
Nitrogen Fertilizer
    37,514       10,560       93,626       30,030  
Other
    (5,139 )     (6,694 )     (22,952 )     (15,888 )
                                 
Total
  $ 212,190     $ 50,450     $ 539,716     $ 58,277  
                                 
Capital expenditures
                               
Petroleum
  $ 20,216     $ 3,509     $ 33,430     $ 16,759  
Nitrogen Fertilizer
    4,492       1,894       10,539       3,863  
Other
    944       774       2,662       2,381  
                                 
Total
  $ 25,652     $ 6,177     $ 46,631     $ 23,003  
                                 
 
                 
    As of September 30,
 		    As of December 31,
 		 
    2011     2010  
    (in thousands)  
 
Total assets
               
Petroleum
  $ 1,295,408     $ 1,049,361  
Nitrogen Fertilizer
    673,779       452,165  
Other
    539,108       238,658  
                 
Total
  $ 2,508,295     $ 1,740,184  
                 
Goodwill
               
Petroleum
  $ —     $ —  
Nitrogen Fertilizer
    40,969       40,969  
Other
    —       —  
                 
Total
  $ 40,969     $ 40,969