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Business Segments
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Business Segments
(15) 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 FASB 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's Coffeyville refinery sells pet coke to CRNF for use in the manufacture of nitrogen fertilizer at the adjacent nitrogen fertilizer plant. For the petroleum segment, a per-ton transfer price is used to record intercompany sales on the part of the petroleum segment and corresponding intercompany cost of product sold (exclusive of depreciation and amortization) for the nitrogen fertilizer segment. The per ton transfer price paid, pursuant to the pet coke supply agreement that became effective October 24, 2007, is based on the lesser of a pet coke price derived from the price received by the nitrogen fertilizer segment for UAN (subject to a UAN based price ceiling and floor) and a pet coke price index for pet coke. Intercompany net sales included in petroleum net sales were approximately $0.5 million and $2.1 million for the three months ended June 30, 2016 and 2015, respectively. Intercompany net sales included in petroleum net sales were approximately $0.9 million and $4.2 million for the six months ended June 30, 2016 and 2015, respectively.
 
The petroleum segment recorded intercompany cost of product sold (exclusive of depreciation and amortization) for the hydrogen purchases described below under "Nitrogen Fertilizer" of approximately $0.5 million and $2.0 million for the three months ended June 30, 2016 and 2015, respectively. For the six months ended June 30, 2016 and 2015, the petroleum segment recorded intercompany cost of product sold (exclusive of depreciation and amortization) of approximately $1.6 million and $8.5 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 $0.5 million and $2.1 million for the three months ended June 30, 2016 and 2015, respectively. Intercompany cost of product sold (exclusive of depreciation and amortization) for the pet coke transfer described above was approximately $1.3 million and $3.9 million for the six months ended June 30, 2016 and 2015, respectively.

Pursuant to a feedstock agreement, the Company's segments have the right to transfer hydrogen between the Coffeyville refinery and nitrogen fertilizer plant. 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, when applicable. For the three months ended June 30, 2016 and 2015, the net sales generated from intercompany hydrogen sales were $0.5 million and $2.0 million, respectively. For the six months ended June 30, 2016 and 2015, the net sales generated from intercompany hydrogen sales were $1.6 million and $8.5 million, respectively. As these intercompany sales and cost of product sold are eliminated, there is no financial statement impact on the condensed consolidated financial statements.

Other Segment

The other segment reflects intercompany eliminations, corporate cash and cash equivalents, income tax activities and other corporate activities that are not allocated to the operating segments.

The following table summarizes certain operating results and capital expenditures information by segment:
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2016
 
2015
 
2016
 
2015
 
(in millions)
Net sales
 
 
 
 
 
 
 
Petroleum
$
1,164.4

 
$
1,547.5

 
$
1,998.4

 
$
2,852.0

Nitrogen Fertilizer
119.8

 
80.8

 
192.9

 
173.9

Intersegment elimination
(1.0
)
 
(4.1
)
 
(2.6
)
 
(12.8
)
Total
$
1,283.2

 
$
1,624.2

 
$
2,188.7

 
$
3,013.1

Cost of product sold (exclusive of depreciation and amortization)
 
 
 
 
 
 
 
Petroleum
$
941.9

 
$
1,180.9

 
$
1,664.2

 
$
2,237.1

Nitrogen Fertilizer
36.0

 
15.4

 
52.4

 
41.2

Intersegment elimination
(1.0
)
 
(4.1
)
 
(2.9
)
 
(12.5
)
Total
$
976.9

 
$
1,192.2

 
$
1,713.7

 
$
2,265.8

Direct operating expenses (exclusive of depreciation and amortization)
 
 
 
 
 
 
 
Petroleum
$
84.0

 
$
90.3

 
$
201.7

 
$
177.3

Nitrogen Fertilizer
54.2

 
25.1

 
77.9

 
49.6

Other
0.1

 
—

 
0.1

 
—

Total
$
138.3

 
$
115.4

 
$
279.7

 
$
226.9

Depreciation and amortization
 
 
 
 
 
 
 
Petroleum
$
31.6

 
$
34.2

 
$
63.1

 
$
68.2

Nitrogen Fertilizer
17.6

 
7.0

 
24.5

 
13.8

Other
1.5

 
1.3

 
3.1

 
2.5

Total
$
50.7

 
$
42.5

 
$
90.7

 
$
84.5

Operating income
 
 
 
 
 
 
 
Petroleum
$
90.1

 
$
250.8

 
$
34.1

 
$
360.0

Nitrogen Fertilizer
3.7

 
28.7

 
23.4

 
60.2

Other
(3.1
)
 
(5.3
)
 
(6.7
)
 
(9.4
)
Total
$
90.7

 
$
274.2

 
$
50.8

 
$
410.8

Capital expenditures
 
 
 
 
 
 
 
Petroleum
$
24.0

 
$
36.4

 
$
68.0

 
$
78.1

Nitrogen Fertilizer
10.1

 
3.4

 
11.9

 
6.0

Other
1.2

 
1.4

 
2.9

 
2.6

Total
$
35.3

 
$
41.2

 
$
82.8

 
$
86.7


 
As of June 30, 2016
 
As of December 31, 2015
 
(in millions)
Total assets
 
 
 
Petroleum
$
2,192.7

 
$
2,189.0

Nitrogen Fertilizer
1,352.6

 
536.3

Other
511.1

 
574.1

Total
$
4,056.4

 
$
3,299.4

Goodwill
 
 
 
Petroleum
$
—

 
$
—

Nitrogen Fertilizer
41.0

 
41.0

Other
—

 
—

Total
$
41.0

 
$
41.0