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Recent Accounting Pronouncements and Accounting Changes (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Effect of accounting standards adoption and accounting changes on financial statements

The following presents the financial statement line items impacted by the turnaround accounting change and the Company’s Topic 842 adoption as of the respective dates.

Effect of Turnaround Accounting Change on Condensed Consolidated Balance Sheet as of December 31, 2018

(in millions)	As Previously Reported				Effect of Turnaround Accounting Change (Unaudited)				As Stated (Unaudited)
Property, plant and equipment, net of accumulated depreciation (CVR Partners: $997 and $1,015, respectively)	$	2,445			$	(15	)		$	2,430
Other long-term assets	169				108			(1)	277
Total assets	$	3,907			$	93			$	4,000
Long-term liabilities:
Deferred income taxes	$	362			$	18		(2)	$	380
Total long-term liabilities	1,543				18				1,561
Equity:
CVR stockholders’ equity:
Additional paid-in-capital	1,473				1				1,474
Retained deficit	(226		)		39				(187		)
Total CVR stockholders’ equity	1,246				40				1,286
Noncontrolling interest	622				35				657
Total equity	1,868				75				1,943
Total liabilities and equity	$	3,907			$	93			$	4,000

(1) This represents the capitalized turnaround asset recognized due to the turnaround policy change.

(2) This represents the increase in deferred tax liability due to the recognition of the capitalized turnaround asset.

Effect of Topic 842 Adoption on Condensed Consolidated Balance Sheet as of January 1, 2019

(in millions)	December 31, 2018 As Stated (1) (Unaudited)				Effect of Adoption of Topic 842 - Leases (Unaudited)				January 1, 2019 As Adjusted
Current assets:
Prepaid expenses and other current assets	$	72			$	(3	)	(2)	$	69
Total currents assets	1,293				(3		)		1,290
Property, plant and equipment, net of accumulated depreciation (CVR Partners: $997 and $1,015, respectively)	2,430				26			(3)	2,456
Other long-term assets	277				56			(4)	333
Total assets	$	4,000			$	79			$	4,079
Current liabilities:
Other current liabilities (CVR Partners: $102 and $96, respectively)	$	176			$	16		(5)	$	192
Total current liabilities	496				16				512
Long-term liabilities:
Long-term debt and finance lease obligations, net of current portion (CVR Partners: $630 and $629, respectively)	1,167				23			(3)	1,190
Other long-term liabilities	14				40			(5)	54
Total long-term liabilities	1,561				63				1,624
Equity:
Total liabilities and equity	$	4,000			$	79			$	4,079

(1) Represents the retrospectively adjusted balance sheet amounts upon reflection of the turnaround accounting change prior to the adoption of Topic 842.

(2) Represents lease prepayments reclassified to right-of-use assets.

(3) The additional $26 million right-of-use asset and $23 million in lease liability represents a lease with a third-party that met the definition of a finance lease under ASC 842 as compared to an operating lease under ASC 840.

(4) Represents recognition of initial right-of-use assets for operating leases, including the reclassification of certain lease prepayments as noted above.

(5) Represents the initial recognition of lease liabilities.

Due to the retrospective adjustments for the turnaround accounting change, the condensed consolidated statement of operations and condensed consolidated statement of cash flows for the three months ended March 31, 2018 have adjusted. The impacts to previously reported amounts are shown below only for those line items impacted.

Effect of Turnaround Accounting on Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows for Three Months Ended March 31, 2018

(in millions)	As Previously Reported				Effect of Turnaround Accounting Change (Unaudited)				As Stated
Condensed Consolidated Statement of Operations
Direct operating expenses (exclusive of depreciation and amortization as reflected below)	$	132			$	(2	)		$	130
Depreciation and amortization	49				15				64
Income tax expense	21				(3		)		18
Net income	103				(10		)		93
Less: Net income attributable to noncontrolling interest	37				(4		)		33
Net income attributable to CVR Energy stockholders	$	66			$	(6	)		$	60
Condensed Consolidated Statement of Cash Flows
Net cash provided by operating activities	$	24			$	2			$	26
Net cash used by investing activities	$	(20	)		$	(1	)		$	(21	)

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- References

No definition available.

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- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=109236672&loc=d3e765-108305

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22580-107794

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=109236672&loc=d3e725-108305

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

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