(16) Guarantor Financial Information

CVR Refining’s 2022 Senior Notes are guaranteed on a senior unsecured basis by the Company and certain wholly-owned subsidiaries, including CVR Refining and certain of its subsidiaries (the “Guarantors”). The guarantees are full and unconditional and joint and several among the Guarantors.

The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X and prepared on the equity basis of accounting. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantors operated as independent entities. The Company has not presented separate financial and narrative information for each of the Guarantors because it believes such financial and narrative information would not provide any additional information that would be material in evaluating the sufficiency of the Guarantors.

Condensed Consolidating Balance Sheet



	March 31, 2019
(in millions)	Parent			Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Intercompany Elimination			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	8		$	306	$	54	$	99	$	—		$	467
Accounts receivable	—			—		176		17		—			193
Due to/from parent	4			—		—		—		—			4
Intercompany receivable	(65		)	—		13		73		(21		)	—
Inventories	—			—		331		72		—			403
Prepaid expenses and other current assets	26			—		30		—		2			58
Total current assets	(27		)	306		604		261		(19		)	1,125
Property, plant and equipment, net of accumulated depreciation	—			—		1,418		1,000		—			2,418
Investment in and advances from subsidiaries	1,444			1,696		166		1,726		(5,032		)	—
Other long-term assets	—			1		278		52		—			331
Total assets	$	1,417		$	2,003	$	2,466	$	3,039	$	(5,051	)	$	3,874
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities:
Accounts payable	$	1		$	—	$	334	$	24	$	—		$	359
Intercompany payables	—			—		8		13		(21		)	—
Other current liabilities	49			14		76		80		2			221
Total current liabilities	50			14		418		117		(19		)	580
Long-term liabilities:
Long-term debt and finance lease obligations, net of current portion	—			496		64		631		—			1,191
Investment and advances from subsidiaries	—			—		—		16		(16		)	—
Deferred income taxes	20			—		—		375		—			395
Other long-term liabilities	4			—		35		11		—			50
Total long-term liabilities	24			496		99		1,033		(16		)	1,636
Commitments and contingencies
Equity:
Total CVR stockholders’ equity	1,343			1,493		1,949		1,574		(5,016		)	1,343
Noncontrolling interest	—			—		—		315		—			315
Total equity	1,343			1,493		1,949		1,889		(5,016		)	1,658
Total liabilities and equity	$	1,417		$	2,003	$	2,466	$	3,039	$	(5,051	)	$	3,874

Condensed Consolidating Balance Sheet



	December 31, 2018
(in millions)	Parent			Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Intercompany Elimination			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	3		$	340	$	261	$	64	$	—		$	668
Accounts receivable	—			—		107		62		—			169
Due to/from parent	4			—		—		—		—			4
Intercompany receivable	6			—		4		—		(10		)	—
Inventories	—			—		316		64		—			380
Prepaid expenses and other current assets	27			1		49		4		(9		)	72
Total current assets	40			341		737		194		(19		)	1,293
Property, plant and equipment, net of accumulated depreciation	—			—		1,413		1,017		—			2,430
Investment in and advances from subsidiaries	1,228			1,601		172		1,440		(4,441		)	—
Other long-term assets	—			1		231		45		—			277
Total assets	$	1,268		$	1,943	$	2,553	$	2,696	$	(4,460	)	$	4,000
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities:
Accounts payable	$	1		$	—	$	293	$	26	$	—		$	320
Intercompany payables	—			—		—		10		(10		)	—
Other current liabilities	6			7		74		97		(8		)	176
Total current liabilities	7			7		367		133		(18		)	496
Long-term liabilities:
Long-term debt and finance lease obligations, net of current portion	—			496		42		629		—			1,167
Investment and advances from subsidiaries	—			—		106		—		(106		)	—
Deferred income taxes	(24		)	—		—		404		—			380
Other long-term liabilities	3			—		7		4		—			14
Total long-term liabilities	(21		)	496		155		1,037		(106		)	1,561
Commitments and contingencies
Equity:
Total CVR stockholders’ equity	1,282			1,440		1,701		1,199		(4,336		)	1,286
Noncontrolling interest	—			—		330		327		—			657
Total equity	1,282			1,440		2,031		1,526		(4,336		)	1,943
Total liabilities and equity	$	1,268		$	1,943	$	2,553	$	2,696	$	(4,460	)	$	4,000

Condensed Consolidating Statement of Operations



	Three Months Ended March 31, 2019
(in millions)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
Net sales	$	—		$	—		$	1,397		$	92		$	(3	)	$	1,486
Operating costs and expenses:
Cost of materials and other	—			—			1,080			24			(3		)	1,101
Direct operating expenses (exclusive of depreciation and amortization as reflected below)	—			—			91			35			—			126
Depreciation and amortization	—			—			48			17			—			65
Cost of sales	—			—			1,219			76			(3		)	1,292
Selling, general and administrative expenses (exclusive of depreciation and amortization as reflected below)	5			—			18			7			—			30
Depreciation and amortization	—			—			2			—			—			2
Loss on asset disposals	—			—			2			—			—			2
Operating income (loss)	(5		)	—			156			9			—			160
Other income (expense):
Interest expense, net	(1		)	(7		)	(2		)	(16		)	—			(26		)
Other income, net	—			—			3			—			—			3
Income (loss) from subsidiaries	121			144			(9		)	(9		)	(247		)	—
Income (loss) before income taxes	115			137			148			(16		)	(247		)	137
Income tax expense (benefit)	14			—			—			21			—			35
Net income (loss)	101			137			148			(37		)	(247		)	102
Less: Net income attributable to noncontrolling interest	—			—			5			(4		)	—			1
Net income (loss) attributable to CVR Energy stockholders	$	101		$	137		$	143		$	(33	)	$	(247	)	$	101

Condensed Consolidating Statement of Operations



	Three Months Ended March 31, 2018
(in millions)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
Net sales	$	—		$	—		$	1,458		$	80		$	(1	)	$	1,537
Operating costs and expenses:
Cost of materials and other	—			—			1,158			23			(1		)	1,180
Direct operating expenses (exclusive of depreciation and amortization as reflected below)	—			—			91			39			—			130
Depreciation and amortization	—			—			48			16			—			64
Cost of sales	—			—			1,297			78			(1		)	1,374
Selling, general and administrative expenses (exclusive of depreciation and amortization as reflected below)	3			—			15			6			—			24
Depreciation and amortization	—			—			3			—			—			3
Loss on asset disposals	—			—			—			—			—			—
Operating income (loss)	(3		)	—			143			(4		)	—			136
Other income (expense):
Interest expense, net	—			(8		)	(3		)	(16		)	—			(27		)
Other income, net	—			—			1			1			—			2
Income (loss) from subsidiaries	62			144			(15		)	(10		)	(181		)	—
Income (loss) before income taxes	59			136			126			(29		)	(181		)	111
Income tax expense (benefit)	(1		)	—			—			19			—			18
Net income (loss)	60			136			126			(48		)	(181		)	93
Less: Net income attributable to noncontrolling interest	—			—			46			(13		)	—			33
Net income (loss) attributable to CVR Energy stockholders	$	60		$	136		$	80		$	(35	)	$	(181	)	$	60

Condensed Consolidating Statement of Cash Flows



	Three Months Ended March 31, 2019
(in millions)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
Net cash provided by (used in) operating activities	$	40		$	1		$	176		$	12		$	(1	)	$	228

Cash flows from investing activities:
Capital expenditures	—			—			(25		)	(4		)	—			(29		)
Turnaround expenditures	—			—			(13		)	—			—			(13		)
Investment in affiliates, net of return of investment	341			(28		)	(137		)	41			(217		)	—
Other investing activities	—			—			—			—			—			—
Net cash provided by (used in) investing activities	341			(28		)	(175		)	37			(217		)	(42		)

Cash flows from financing activities:
Dividends to CVR Energy stockholders	(75		)	—			—			—			—			(75		)
Acquisition of CVR Refining common units	(301		)	—			—			—			—			(301		)
Distributions to CVR Partners’ noncontrolling interest holders	—			—			—			(9		)	—			(9		)
Distributions or intercompany advances to other CVR Energy subsidiaries	—			(7		)	(206		)	(5		)	218			—
Other financing activities	—			—			(2		)	—			—			(2		)
Net cash provided by (used in) financing activities	(376		)	(7		)	(208		)	(14		)	218			(387		)
Net increase (decrease) in cash and cash equivalents	5			(34		)	(207		)	35			—			(201		)
Cash and cash equivalents, beginning of period	3			340			261			64			—			668
Cash and cash equivalents, end of period	$	8		$	306		$	54		$	99		$	—		$	467

Condensed Consolidating Statement of Cash Flows



	Three Months Ended March 31, 2018
(in millions)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
Net cash provided by (used in) operating activities	$	12		$	2		$	8		$	5		$	(1	)	$	26

Cash flows from investing activities:
Capital expenditures	(1		)	—			(15		)	(4		)	—			(20		)
Turnaround expenditures	—			—			(1		)	—			—			(1		)
Investment in affiliates, net of return of investment	36			25			(221		)	(14		)	174			—
Other investing activities	—			—			—			—			—			—
Net cash provided by (used in) investing activities	35			25			(237		)	(18		)	174			(21		)

Cash flows from financing activities:
CVR Energy shareholder dividends	(43		)	—			—			—			—			(43		)
Distributions to CVR Refining noncontrolling interest holders	—			—			(20		)	—			—			(20		)
Distributions to CVR Partners’ noncontrolling interest holders	—			—			—			(3		)	—			(3		)
Distributions or intercompany advances to other CVR Energy subsidiaries	—			(92		)	238			27			(173		)	—
Other financing activities	—			—			(2		)	1			—			(1		)
Net cash provided by (used in) financing activities	(43		)	(92		)	216			25			(173		)	(67		)
Net increase (decrease) in cash and cash equivalents	4			(65		)	(13		)	12			—			(62		)
Cash and cash equivalents, beginning of period	4			163			264			51			—			482
Cash and cash equivalents, end of period	$	8		$	98		$	251		$	63		$	—		$	420