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Business Segments
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Business Segments
(18) 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's Coffeyville refinery sells pet coke to the Nitrogen Fertilizer Partnership 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 materials and other 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) or a pet coke price index for pet coke. The intercompany transactions are eliminated in the other segment. Intercompany sales included in petroleum net sales were approximately $1.8 million, $6.8 million and $8.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.

The petroleum segment recorded intercompany cost of materials and other for the hydrogen purchases described below under "Nitrogen Fertilizer" of approximately $3.2 million, $11.8 million and $10.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. The petroleum segment recorded intercompany revenue for the hydrogen sale of $0.2 million for the year ended December 31, 2016.

Nitrogen Fertilizer

The principal product of the nitrogen fertilizer segment is nitrogen fertilizer. Intercompany cost of materials and other for the pet coke transfer described above was approximately $2.1 million, $6.6 million and $9.2 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Pursuant to the feedstock agreement, the Company's segments have the right to transfer hydrogen between the Coffeyville refinery and the Coffeyville Fertilizer Facility. 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 materials and other for the nitrogen fertilizer segment. For the years ended December 31, 2016, 2015 and 2014, the net sales generated from intercompany hydrogen sales were $3.0 million, $11.8 million and $10.1 million, respectively. As intercompany sales and cost of materials and other are eliminated, there is no financial statement impact on the 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:
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
(in millions)
Net sales
 
 
 
 
 
Petroleum
$
4,431.3

 
$
5,161.9

 
$
8,829.7

Nitrogen Fertilizer
356.3

 
289.2

 
298.7

Intersegment elimination
(5.2
)
 
(18.6
)
 
(18.9
)
Total
$
4,782.4

 
$
5,432.5

 
$
9,109.5

Cost of materials and other
 
 
 
 
 
Petroleum
$
3,759.2

 
$
4,143.6

 
$
8,013.4

Nitrogen Fertilizer
93.7

 
65.2

 
72.0

Intersegment elimination
(5.4
)
 
(18.4
)
 
(19.4
)
Total
$
3,847.5

 
$
4,190.4

 
$
8,066.0

Direct operating expenses (exclusive of depreciation and amortization)
 
 
 
 
 
Petroleum
$
393.4

 
$
478.5

 
$
416.0

Nitrogen Fertilizer
148.3

 
106.1

 
98.9

Other
0.1

 
0.1

 
0.2

Total
$
541.8

 
$
584.7

 
$
515.1

Depreciation and amortization
 
 
 
 
 
Petroleum
$
129.0

 
$
130.2

 
$
122.5

Nitrogen Fertilizer
58.2

 
28.4

 
27.3

Other
5.9

 
5.5

 
4.6

Total
$
193.1

 
$
164.1

 
$
154.4

Operating income
 
 
 
 
 
Petroleum
$
77.8

 
$
361.7

 
$
207.2

Nitrogen Fertilizer
26.8

 
68.7

 
82.8

Other
(13.7
)
 
(8.8
)
 
(25.7
)
Total
$
90.9

 
$
421.6

 
$
264.3

Capital expenditures
 
 
 
 
 
Petroleum
$
102.3

 
$
194.7

 
$
191.3

Nitrogen fertilizer
23.2

 
17.0

 
21.1

Other
7.2

 
7.0

 
6.0

Total
$
132.7

 
$
218.7

 
$
218.4


 
Year Ended December 31,
 
2016
 
2015
 
2014
 
(in millions)
Total assets*
 
 
 
 
 
Petroleum
$
2,331.9

 
$
2,189.0

 
$
2,410.7

Nitrogen Fertilizer
1,312.2

 
536.3

 
577.8

Other
406.1

 
574.1

 
465.8

Total
$
4,050.2

 
$
3,299.4

 
$
3,454.3

Goodwill
 
 
 
 
 
Petroleum
$
—

 
$
—

 
$
—

Nitrogen Fertilizer
41.0

 
41.0

 
41.0

Other
—

 
—

 
—

Total
$
41.0

 
$
41.0

 
$
41.0


_______________________________________

(*) Prior period amounts have been retrospectively adjusted for Accounting Standard Update No. 2015-03, which requires that costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt.