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Income Taxes | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | (10) Income Taxes On May 19, 2012, CVR became a member of the consolidated federal tax group of AEPC, a wholly-owned subsidiary of Icahn Enterprises, and subsequently entered into a tax allocation agreement with AEPC (the "Tax Allocation Agreement"). The Tax Allocation Agreement provides that AEPC will pay all consolidated federal income taxes on behalf of the consolidated tax group. CVR is required to make payments to AEPC in an amount equal to the tax liability, if any, that it would have paid if it were to file as a consolidated group separate and apart from AEPC. As of December 31, 2013, the Company recorded a liability of $0.1 million for federal income taxes due to AEPC under the Tax Allocation Agreement. As of December 31, 2012, the Company recorded an overpayment of approximately $9.2 million, which was applied as a credit against the Company's estimated tax paid to AEPC during the first quarter of 2013. These amounts are recorded as due to parent and due from parent, respectively, in the Consolidated Balance Sheet. During the years ended December 31, 2013 and 2012, the Company paid $260.0 million and $150.7 million, respectively, to AEPC under the Tax Allocation Agreement. Income tax expense (benefit) is comprised of the following:
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
| (in millions)
Current |  |  |  |  |
Federal | $ | 265.8 |  |  | $ | 237.3 |  |  | $ | 141.3 |
State | 21.5 |  |  | 25.4 |  |  | 8.0 |
Total current | 287.3 |  |  | 262.7 |  |  | 149.3 |
Deferred |  |  |  |  |
Federal | (93.5 | ) |  | (39.8 | ) |  | 40.3 |
State | (10.1 | ) |  | 2.7 |  |  | 19.9 |
Total deferred | (103.6 | ) |  | (37.1 | ) |  | 60.2 |
Total income tax expense | $ | 183.7 |  |  | $ | 225.6 |  |  | $ | 209.5 |
The following is a reconciliation of total income tax expense (benefit) to income tax expense (benefit) computed by applying the statutory federal income tax rate (35%) to pretax income (loss):
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
| (in millions)
Tax computed at federal statutory rate | $ | 247.0 |  |  | $ | 223.4 |  |  | $ | 205.8 |
State income taxes, net of federal tax benefit | 16.5 |  |  | 23.9 |  |  | 20.6 |
State tax incentives, net of federal tax expense | (9.0 | ) |  | (5.4 | ) |  | (3.2 | )
Domestic production activities deduction | (18.5 | ) |  | (16.5 | ) |  | (10.6 | )
Non-deductible share-based compensation | 1.5 |  |  | 7.3 |  |  | 2.0 |
Non-deductible transaction costs | — |  |  | 4.2 |  |  | — |
IRS interest expense, net | — |  |  | 0.1 |  |  | 0.1 |
Noncontrolling interest | (53.0 | ) |  | (11.9 | ) |  | (11.5 | )
Partnership basis adjustment | — |  |  | — |  |  | 4.2 |
Other, net | (0.8 | ) |  | 0.5 |  |  | 2.1 |
Total income tax expense | $ | 183.7 |  |  | $ | 225.6 |  |  | $ | 209.5 |
The Company earns Kansas High Performance Incentive Program ("HPIP") credits for qualified business facility investment within the state of Kansas. CVR recognized a net income tax benefit of approximately $7.8 million, $4.5 million and $3.2 million on a credit of approximately $12.0 million, $6.9 million and $4.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. The Company earns Oklahoma Investment credits for qualified manufacturing facility investment within the state of Oklahoma. CVR recognized a net income tax benefit of approximately $1.2 million and $0.9 million on a credit of approximately $1.8 million and $1.3 million for the years ended December 31, 2013 and 2012, respectively. The income tax effect of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities at December 31, 2013 and 2012 are as follows:
| Year Ended December 31,
| 2013 |  | 2012
| (in millions)
Deferred income tax assets: |  |  |
Allowance for doubtful accounts | $ | — |  |  | $ | 0.8 |
Personnel accruals | 8.8 |  |  | 12.9 |
Inventories | — |  |  | 3.6 |
Unrealized derivative losses, net | — |  |  | 26.2 |
Accrued expenses | — |  |  | 2.1 |
State tax credit carryforward, net of federal expense | 19.6 |  |  | 14.4 |
Contingent liabilities | 10.3 |  |  | 10.8 |
Other | — |  |  | 2.1 |
Total gross deferred income tax assets | 38.7 |  |  | 72.9 |
Deferred income tax liabilities: |  |  |
Property, plant, and equipment | (2.0 | ) |  | (282.2 | )
Investment in CVR Partners | (87.6 | ) |  | (109.7 | )
Investment in CVR Refining | (522.1 | ) |  | — |
Deferred financing | — |  |  | (1.1 | )
Prepaid expenses | (0.4 | ) |  | (9.4 | )
Other | (0.5 | ) |  | — |
Total gross deferred income tax liabilities | (612.6 | ) |  | (402.4 | )
Net deferred income tax liabilities | $ | (573.9 | ) |  | $ | (329.5 | )
At December 31, 2013, CVR has Kansas state income tax credits of approximately $5.3 million, which are available to reduce future Kansas state regular income taxes. These credits, if not used, will expire in 2029. Additionally, CVR has Oklahoma state income tax credits of approximately $8.9 million which are available to reduce future Oklahoma state regular income taxes. These credits have an indefinite life. In assessing the realizability of deferred tax assets including credit carryforwards, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Although realization is not assured, management believes that it is more likely than not that all of the deferred tax assets will be realized and thus, no valuation allowance was provided as of December 31, 2013 and 2012. A reconciliation of the unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 is as follows:
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
| (in millions)
Balance beginning of year | $ | 36.9 |  |  | $ | 17.7 |  |  | $ | 0.2 |
Increase based on prior year tax positions | — |  |  | 4.8 |  |  | — |
Decrease based on prior year tax positions | (6.4 | ) |  | (0.1 | ) |  | — |
Increases in current year tax positions | 14.7 |  |  | 14.7 |  |  | 17.5 |
Settlements | — |  |  | — |  |  | — |
Reductions related to expirations of statute of limitations | — |  |  | (0.2 | ) |  | — |
Balance end of year | $ | 45.2 |  |  | $ | 36.9 |  |  | $ | 17.7 |
Included in the balance of unrecognized tax benefits as of December 31, 2013 and 2012 are $19.1 million and $10.4 million, respectively, of tax benefits that, if recognized, would affect the effective tax rate. The balance of unrecognized tax benefits as of December 31, 2011 include no amounts that, if recognized, would affect the effective tax rate. CVR recognizes interest expense (income) and penalties on uncertain tax positions and income tax deficiencies (refunds) in income tax expense. CVR recognized interest expense of approximately $2.2 million during 2013. No penalties were recognized during 2013. As of December 31, 2013, CVR has recognized a liability for interest of approximately $2.6 million. No liability was recognized for penalties in 2013. In 2012, CVR recognized interest expense of approximately $0.5 million and penalties of approximately $0.2 million and in total, as of December 31, 2012, had recognized a liability for interest of approximately $0.5 million and penalties of $0.2 million. In 2011, CVR recognized approximately $0.1 million of federal and state interest expense and penalties, and in total as of December 31, 2011, had no liability for interest or penalties. At December 31, 2013, the Company's tax filings are generally open to examination in the United States for the tax years ended December 31, 2010 through December 31, 2012 and in various individual states for the tax years ended December 31, 2009 through December 31, 2012.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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