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Business Segments | 6 Months Ended
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Jun. 30, 2017
Segment Reporting [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 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 a subsidiary of 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 net sales included in petroleum net sales were approximately $0.8 million and $0.5 million for the three months ended June 30, 2017 and 2016, respectively. Intercompany net sales included in petroleum net sales were approximately $1.2 million and $0.9 million for the six months ended June 30, 2017 and 2016, respectively. The petroleum segment recorded intercompany cost of materials and other for the hydrogen purchases, pursuant to the feedstock and shared services agreement, described below under "Nitrogen Fertilizer" of approximately $0.0 million and $0.5 million for the three months ended June 30, 2017 and 2016, respectively. For the six months ended June 30, 2017 and 2016 the petroleum segment recorded intercompany cost of materials and other for the hydrogen purchases of approximately $0.1 million and $1.6 million, respectively. 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 $0.5 million and $0.5 million for the three months ended June 30, 2017 and 2016, respectively. Intercompany cost of materials and other for the pet coke transfer described above was approximately $1.0 million and $1.3 million for the six months ended June 30, 2017 and 2016, respectively. Prior to January 1, 2017, pursuant to the feedstock agreement, the Company's segments had 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 three and six months ended June 30, 2016, the net sales from CRNF to CRRM were $0.5 million and $1.6 million, respectively. Beginning January 1, 2017, hydrogen sales from CRRM to CRNF are governed pursuant to the hydrogen purchase and sales agreement. Sales of hydrogen from CRNF to CRRM remain governed pursuant to the feedstock and shared services agreement. For the three and six months ended June 30, 2017, the gross sales from CRRM to CRNF generated from intercompany hydrogen sales were $0.9 million and $2.1 million, respectively. As these intercompany sales and cost of materials and other 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,
| 2017 |  | 2016 |  | 2017 |  | 2016
| (in millions)
Net sales |  |  |  |  |  |  |
Petroleum | $ | 1,338.2 |  |  | $ | 1,164.4 |  |  | $ | 2,761.7 |  |  | $ | 1,998.4 |
Nitrogen Fertilizer | 97.9 |  |  | 119.8 |  |  | 183.2 |  |  | 192.9 |
Intersegment elimination | (1.7 | ) |  | (1.0 | ) |  | (3.4 | ) |  | (2.6 | )
Total | $ | 1,434.4 |  |  | $ | 1,283.2 |  |  | $ | 2,941.5 |  |  | $ | 2,188.7 |
Cost of materials and other |  |  |  |  |  |  |
Petroleum | $ | 1,208.0 |  |  | $ | 941.9 |  |  | $ | 2,409.3 |  |  | $ | 1,664.2 |
Nitrogen Fertilizer | 22.1 |  |  | 36.0 |  |  | 43.9 |  |  | 52.4 |
Intersegment elimination | (1.5 | ) |  | (1.0 | ) |  | (3.4 | ) |  | (2.9 | )
Total | $ | 1,228.6 |  |  | $ | 976.9 |  |  | $ | 2,449.8 |  |  | $ | 1,713.7 |
Direct operating expenses (exclusive of depreciation and amortization) |  |  |  |  |  |  |
Petroleum | $ | 86.3 |  |  | $ | 84.0 |  |  | $ | 188.4 |  |  | $ | 201.7 |
Nitrogen Fertilizer | 37.8 |  |  | 54.2 |  |  | 73.7 |  |  | 77.9 |
Other | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.1 |
Total | $ | 124.2 |  |  | $ | 138.3 |  |  | $ | 262.3 |  |  | $ | 279.7 |
Depreciation and amortization |  |  |  |  |  |  |
Petroleum | $ | 32.4 |  |  | $ | 31.6 |  |  | $ | 66.5 |  |  | $ | 63.1 |
Nitrogen Fertilizer | 20.0 |  |  | 17.6 |  |  | 35.4 |  |  | 24.5 |
Other | 1.6 |  |  | 1.5 |  |  | 3.2 |  |  | 3.1 |
Total | $ | 54.0 |  |  | $ | 50.7 |  |  | $ | 105.1 |  |  | $ | 90.7 |
Operating income (loss) |  |  |  |  |  |  |
Petroleum | $ | (7.4 | ) |  | $ | 90.1 |  |  | $ | 58.6 |  |  | $ | 34.1 |
Nitrogen Fertilizer | 12.2 |  |  | 3.7 |  |  | 17.5 |  |  | 23.4 |
Other | (3.5 | ) |  | (3.1 | ) |  | (7.2 | ) |  | (6.7 | )
Total | $ | 1.3 |  |  | $ | 90.7 |  |  | $ | 68.9 |  |  | $ | 50.8 |
Capital expenditures |  |  |  |  |  |  |
Petroleum | $ | 27.8 |  |  | $ | 24.0 |  |  | $ | 47.4 |  |  | $ | 68.0 |
Nitrogen Fertilizer | 4.5 |  |  | 10.1 |  |  | 8.6 |  |  | 11.9 |
Other | 0.9 |  |  | 1.2 |  |  | 1.4 |  |  | 2.9 |
Total | $ | 33.2 |  |  | $ | 35.3 |  |  | $ | 57.4 |  |  | $ | 82.8 |
| As of June 30, 2017 |  | As of December 31, 2016
| (in millions)
Total assets |  |  |
Petroleum | $ | 2,447.1 |  |  | $ | 2,331.9 |
Nitrogen Fertilizer | 1,280.6 |  |  | 1,312.2 |
Other | 301.4 |  |  | 406.1 |
Total | $ | 4,029.1 |  |  | $ | 4,050.2 |
Goodwill |  |  |
Petroleum | $ | — |  |  | $ | — |
Nitrogen Fertilizer | 41.0 |  |  | 41.0 |
Other | — |  |  | — |
Total | $ | 41.0 |  |  | $ | 41.0 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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