Business Segments

6 Months Ended

Jun. 30, 2019

(12) Business Segments

CVR Energy’s revenues are derived from two operating segments: the Petroleum Segment and the Nitrogen Fertilizer Segment. The Company evaluates the performance of its segments based primarily on segment operating income and EBITDA. For the purposes of the operating segment disclosure, the Company presents operating income as it is the most comparable measure to the amounts presented on the condensed consolidated statement of operations. The other amounts reflect 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,
(in millions)	2019			2018			2019			2018
Net sales
Petroleum	$	1,552		$	1,824		$	2,949		$	3,282
Nitrogen Fertilizer	138			93			230			173
Other	(3		)	(3		)	(6		)	(4		)
Total	$	1,687		$	1,914		$	3,173		$	3,451
Operating Income
Petroleum	$	163		$	113		$	319		$	256
Nitrogen Fertilizer	35			—			44			(4		)
Other	(6		)	(6		)	(11		)	(8		)
Total	192			107			352			244
Interest expense, net	(26		)	(26		)	(52		)	(53		)
Other income, net	3			2			6			3
Income before income taxes	$	169		$	83		$	306		$	194
Depreciation and amortization
Petroleum	$	52		$	49		$	101		$	97
Nitrogen Fertilizer	25			20			42			37
Other	1			2			2			3
Total	$	78		$	71		$	145		$	137
Capital expenditures (1)
Petroleum	$	17		$	15		$	38		$	29
Nitrogen Fertilizer	2			7			5			11
Other	3			1			3			2
Total	$	22		$	23		$	46		$	42

The following table summarizes total assets by segment:



(in millions)	June 30, 2019			December 31, 2018
Petroleum	$	2,833		$	2,453
Nitrogen Fertilizer	1,190			1,254
Other (2)	(193		)	293
Total Assets	$	3,830		$	4,000

(1)Capital expenditures are shown exclusive of turnarounds.

(2)Includes elimination of intercompany assets.