(14) Guarantor Financial Information

On January 29, 2019, in connection with CVRR Unit Purchase, CVR Energy, Inc. became a guarantor of CVR Refining’s 2022 Senior Notes pursuant to a supplemental indenture (the “CVR Energy Guarantee”). The CVR Energy Guarantee is full and unconditional and joint and several. Following the cessation of trading for CVRR’s common units and the execution of the CVR Energy Guarantee, the Company is providing condensed consolidating financial statements in lieu of standalone CVRR financial statements pursuant to Rule 3-10 of Regulation S-X.

The guarantor financial information provided below reflects condensed consolidating financial information of the Company. The following outlines the composition of each column in the condensed consolidating financial statements:


•	Parent - represents CVR Energy, Inc. which, as of January 29, 2019, guarantees the 2022 Senior Notes;


•	Subsidiary Issuer - represents Refining LLC and Coffeyville Finance, Inc. (“Coffeyville Finance”), which are the issuers of the 2022 Senior Notes. Coffeyville Finance has no assets or operations, thus the columns presents the financial position, results and cash flows of Refining LLC;


•	Guarantor Subsidiaries - represents the operating subsidiaries of Refining LLC, which also represent the operating subsidiaries of CVR Refining, and CRLLC, an indirect wholly-owned subsidiary of CVR Energy. CRLLC’s activities consist of general and administrative functions for the Company’s operating businesses; and


•	Non-Guarantor Subsidiaries - represents CVR Partners and other subsidiaries of CVR Energy that do not guarantee the 2022 Senior Notes.

For the purposes of this financial information, investments in consolidated subsidiaries are accounted for under the equity method of accounting. Intercompany transactions between entities within each column have been eliminated within the column. Eliminations for transactions with entities reflected in other columns are reflected in the “Intercompany Elimination” column.

Condensed Consolidating Balance Sheet



	December 31, 2018
	Parent			Subsidiary Issuer		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination				Consolidated
(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	3		$	340	$	252		$	73		$	—			$	668
Accounts receivable	—			—		107			62			—				169
Intercompany receivable	6			—		4			—			(10		)		—
Inventories	—			—		316			64			—				380
Prepaid expenses and other current assets	31			1		47			5			(8		)		76
Total current assets	40			341		726		—	204		—	(18		)	—	1,293
Property, plant and equipment, net of accumulated depreciation	—			—		1,425			1,020			—				2,445
Investment in and advances from subsidiaries	1,192			1,601		173			1,440			(4,406		)		—
Other long-term assets	—			1		123			45			—				169
Total assets	$	1,232		$	1,943	$	2,447	200,000	$	2,709	200,000	$	(4,424	)	200,000	$	3,907
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Note payable and capital lease obligations	$	—		$	—	$	3		$	—		$	—			$	3
Accounts payable	1			—		291			29			(1		)		320
Intercompany payables	—			—		—			10			(10		)		—
Other current liabilities	6			7		62			105			(7		)		173
Total current liabilities	7			7		356		—	144		—	(18		)	—	496
Long-term liabilities:
Long-term debt and capital lease obligations, net of current portion	—			496		42			629			—				1,167
Investment and advances from subsidiaries	—			—		106			—			(106		)		—
Deferred income taxes	(24		)	—		—			386			—				362
Other long-term liabilities	3			—		7			4			—				14
Total long-term liabilities	(21		)	496		155		—	1,019		—	(106		)	—	1,543
Commitments and contingencies
Equity:
Total CVR stockholders’ equity	1,246			1,440		1,936			924			(4,300		)		1,246
Noncontrolling interest	—			—		—			622			—				622
Total equity	1,246			1,440		1,936			1,546			(4,300		)		1,868
Total liabilities and equity	$	1,232		$	1,943	$	2,447	—	$	2,709	—	$	(4,424	)	—	$	3,907

Condensed Consolidating Balance Sheet



	December 31, 2017
	Parent			Subsidiary Issuer		Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Intercompany Elimination				Consolidated
(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	4		$	163	$	261		$	54		$	—			$	482
Accounts receivable	—			—		169			10			—				179
Intercompany receivables	9			—		8			—			(17		)		—
Inventories	—			—		316			53			—				369
Prepaid expenses and other current assets	13			1		23			18			(7		)		48
Total current assets	26			164		777		—	135		—	(24		)	—	1,078
Property, plant and equipment, net of accumulated depreciation	—			—		1,513			1,075			—				2,588
Investment in and advances from subsidiaries	897			1,596		189			1,259			(3,941		)		—
Other long-term assets	1			1		91			48			—				141
Total assets	$	924		$	1,761	$	2,570	—	$	2,517	—	$	(3,965	)	—	$	3,807
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Note payable and capital lease obligations	$	—		$	—	$	2		$	—		$	—			$	2
Accounts payable	1			—		310			24			(1		)		334
Intercompany payables	—			—		—			17			(17		)		—
Other current liabilities	12			5		151			46			(6		)		208
Total current liabilities	13			5		463		—	87		—	(24		)	—	544
Long-term liabilities:
Long-term debt and capital lease obligations, net of current portion	—			496		42			626			—				1,164
Investment and advances from subsidiaries	—			—		230			—			(230		)		—
Deferred income taxes	(8		)	—		—			394			—				386
Other long-term liabilities	—			—		4			5			—				9
Total long-term liabilities	(8		)	496		276		—	1,025		—	(230		)	—	1,559
Commitments and contingencies
Equity:
Total CVR stockholders’ equity	919			1,260		1,831			620			(3,711		)		919
Noncontrolling interest	—			—		—			785			—				785
Total equity	919			1,260		1,831		—	1,405		—	(3,711		)	—	1,704
Total liabilities and equity	$	924		$	1,761	$	2,570	—	$	2,517	—	$	(3,965	)	—	$	3,807

Condensed Consolidating Statement of Operations



	Year Ended December 31, 2018
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
(in millions)
Net sales	$	—		$	—		$	6,779		$	351		$	(6	)	$	7,124
Operating costs and expenses:
Cost of materials and other	—			—			5,601			88			(6		)	5,683
Direct operating expenses	—			—			364			159			—			523
Depreciation and amortization	—			—			130			72			—			202
Cost of sales	—			—			6,095			319			(6		)	6,408
Selling, general and administrative expenses	17			1			60			34			—			112
Depreciation and amortization	—			—			8			3			—			11
Loss on asset disposals	—			—			5			1			—			6
Operating income (loss)	(17		)	(1		)	611			(6		)	—			587
Other income (expense):
Interest expense, net	—			(32		)	(7		)	(63		)	—			(102		)
Other income, net	—			—			9			6			—			15
Income (loss) from subsidiaries	303			611			(46		)	578			(1,446		)	—
Income (loss) before income taxes	286			578			567			515			(1,446		)	500
Income tax expense (benefit)	(3		)	—			—			92			—			89
Net income (loss)	289			578			567			423			(1,446		)	411
Less: Net income attributable to noncontrolling interest	—			—			—			122			—			122
Net income (loss) attributable to CVR Energy stockholders	$	289		$	578		$	567		$	301		$	(1,446	)	$	289

Condensed Consolidating Statement of Operations



	Year Ended December 31, 2017
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
(in millions)
Net sales	$	—		$	—		$	5,665		$	331		$	(8	)	$	5,988
Operating costs and expenses:
Cost of materials and other	—			—			4,876			85			(8		)	4,953
Direct operating expenses	—			—			441			157			—			598
Depreciation and amortization	—			—			129			74			—			203
Cost of sales	—			—			5,446			316			(8		)	5,754
Selling, general and administrative expenses	15			1			14			83			—			113
Depreciation and amortization	—			—			8			3			—			11
Loss on asset disposals	—			—			3			—			—			3
Operating income (loss)	(15		)	(1		)	194			(71		)	—			107
Other income (expense):
Interest expense, net	—			(34		)	(11		)	(64		)	—			(109		)
Other income, net	—			—			1			1			—			2
Income (loss) from subsidiaries	246			184			(88		)	148			(490		)	—
Income (loss) before income taxes	231			149			96			14			(490		)	—
Income tax benefit	(4		)	—			—			(213		)	—			(217		)
Net income (loss)	235			149			96			227			(490		)	217
Less: Net loss attributable to noncontrolling interest	—			—			—			(18		)	—			(18		)
Net income (loss) attributable to CVR Energy stockholders	$	235		$	149		$	96		$	245		$	(490	)	$	235

Condensed Consolidating Statement of Operations



	Year Ended December 31, 2016
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
(in millions)
Net sales	$	—		$	—		$	4,432		$	356		$	(6	)	$	4,782
Operating costs and expenses:
Cost of materials and other	—			—			3,780			93			(6		)	3,867
Direct operating expenses	—			—			392			149			—			541
Depreciation and amortization	—			—			126			58			—			184
Cost of sales	—			—			4,298			300			(6		)	4,592
Selling, general and administrative expenses	12			1			15			82			—			110
Depreciation and amortization	—			—			6			3			—			9
Loss on asset disposals	—			—			—			1			—			1
Operating income (loss)	(12		)	(1		)	113			(30		)	—			70
Other income (expense):
Interest expense, net	—			(32		)	(2		)	(49		)	—			(83		)
Other income, net	5			—			—			(3		)	—			2
Income (loss) from subsidiaries	26			103			(64		)	78			(143		)	—
Income (loss) before income taxes	19			70			47			(4		)	(143		)	(11		)
Income tax benefit	(6		)	—			—			(14		)	—			(20		)
Net income (loss)	25			70			47			10			(143		)	9
Less: Net loss attributable to noncontrolling interest	—			—			—			(16		)	—			(16		)
Net income (loss) attributable to CVR Energy stockholders	$	25		$	70		$	47		$	26		$	(143	)	$	25

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2018
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
(in millions)
Net cash provided by (used in) operating activities	38			(31		)	687			(77		)	3			620

Cash flows from investing activities:
Capital expenditures	(3		)	—			(79		)	(20		)	—			(102		)
Investment in affiliates, net of return of investment	202			630			679			435			(1,946		)	—
Other investing activities	—			—			—			2			—			2
Net cash provided by (used in) investing activities	199			630			600			417			(1,946		)	(100		)

Cash flows from financing activities:
CVR Energy shareholder dividends	(238		)	—			—			—			—			(238		)
CVR Refining unitholder distributions	—			—			(93		)	—			—			(93		)
Distributions or intercompany advances to other CVR Energy subsidiaries	—			(422		)	(1,202		)	(319		)	1,943			—
Other financing activities	—			—			(1		)	(2		)	—			(3		)
Net cash provided by (used in) financing activities	(238		)	(422		)	(1,296		)	(321		)	1,943			(334		)
Net increase (decrease) in cash and cash equivalents	(1		)	177			(9		)	19			—			186
Cash and cash equivalents, beginning of period	4			163			261			54			—			482
Cash and cash equivalents, end of period	$	3		$	340		$	252		$	73		$	—		$	668

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2017
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
(in millions)
Net cash provided by (used in) operating activities	(30		)	(32		)	273			(33		)	(10		)	168

Cash flows from investing activities:
Capital expenditures	(4		)	—			(101		)	(15		)	—			(120		)
Investment in affiliates, net of return of investment	207			1,083			112			158			(1,636		)	(76		)
Net cash provided by (used in) investing activities	203			1,083			11			143			(1,636		)	(196		)

Cash flows from financing activities:
CVR Energy dividends	(174		)	—			—			—			—			(174		)
CVR Refining unitholder distributions	—			—			(47		)	—			—			(47		)
CVR Partners unitholder distributions	—			—			—			(2		)	—			(2		)
Distributions or intercompany advances to other CVR Energy subsidiaries	—			(1,190		)	(338		)	(118		)	1,646			—
Other financing activities	—			—			(2		)	(1		)	—			(3		)
Net cash provided by (used in) financing activities	(174		)	(1,190		)	(387		)	(121		)	1,646			(226		)
Net decrease in cash and cash equivalents	(1		)	(139		)	(103		)	(11		)	—			(254		)
Cash and cash equivalents, beginning of period	5			302			364			65			—			736
Cash and cash equivalents, end of period	$	4		$	163		$	261		$	54		$	—		$	482

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2016
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
(in millions)
Net cash provided by (used in) operating activities	(29		)	(26		)	380			(45		)	(13		)	267

Cash flows from investing activities:
Capital expenditures	(10		)	—			(102		)	(21		)	—			(133		)
Acquisition of CVR Nitrogen, net of cash acquired	—			—			—			(64		)	—			(64		)
Investment in affiliates, net of return of investment	214			227			(157		)	281			(570		)	(5		)
Other investing activities	—			—			1			—			—			1
Net cash provided by (used in) investing activities	204			227			(258		)	196			(570		)	(201		)

Cash flows from financing activities:
Proceeds on issuance of 2023 Notes, net of original issue discount	—			—			—			629			—			629
Principal and premium payments on 2021 Notes	—			—			—			(322		)	—			(322		)
Payments of revolving debt	—			—			—			(49		)	—			(49		)
Principal payments on CRNF credit facility	—			—			—			(125		)	—			(125		)
CVR Energy shareholder dividends	(174		)	—			—			—			—			(174		)
CVR Partners unitholder distributions	—			—			—			(42		)	—			(42		)
Distributions or intercompany advances to other CVR Energy subsidiaries	—			(69		)	(280		)	(234		)	583			—
Other financing activities	(11		)	—			(1		)	—			—			(12		)
Net cash provided by (used in) financing activities	(185		)	(69		)	(281		)	(143		)	583			(95		)
Net increase (decrease) in cash and cash equivalents	(10		)	132			(159		)	8			—			(29		)
Cash and cash equivalents, beginning of period	15			170			523			57			—			765
Cash and cash equivalents, end of period	$	5		$	302		$	364		$	65		$	—		$	736