Guarantor Financial Information

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

(15) 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 Consolidated Balance Sheet



	June 30, 2019
(in millions)	Parent		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	5	$	416	$	48	$	71		$	—		$	540
Accounts receivable	—		—		145		23			—			168
Due to/from parent	—		—		—		—			—			—
Intercompany receivable	5		—		10		8			(23		)	—
Inventories	—		—		334		56			—			390
Prepaid expenses and other current assets	57		2		2		—			(2		)	59
Total current assets	67		418		539		158			(25		)	1,157
Property, plant and equipment, net of accumulated depreciation	—		1		1,393		982			—			2,376
Investment in and advances from subsidiaries	1,314		1,647		296		—			(3,257		)	—
Other long-term assets	7		4		236		50			—			297
Total assets	$	1,388	$	2,070	$	2,464	$	1,190		$	(3,282	)	$	3,830
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1	$	3	$	301	$	18		$	—		$	323
Intercompany payables	—		—		—		23			(23		)	—
Other current liabilities	—		14		61		86			(2		)	159
Total current liabilities	1		17		362		127			(25		)	482
Long-term liabilities:
Long-term debt and finance lease obligations, net of current portion	—		497		63		630			—			1,190
Investment and advances from subsidiaries	—		—		—		852			(852		)	—
Deferred income taxes	—		—		—		401			—			401
Other long-term liabilities	3		1		33		14			—			51
Total long-term liabilities	3		498		96		1,897			(852		)	1,642
Commitments and contingencies
Equity:
Total CVR stockholders’ equity	1,384		1,555		2,006		(1,156		)	(2,405		)	1,384
Noncontrolling interest	—		—		—		322			—			322
Total equity	1,384		1,555		2,006		(834		)	(2,405		)	1,706
Total liabilities and equity	$	1,388	$	2,070	$	2,464	$	1,190		$	(3,282	)	$	3,830

Condensed Consolidated 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	1,232			1,601		172		1,440		(4,445		)	—
Other long-term assets	—			1		231		45		—			277
Total assets	$	1,272		$	1,943	$	2,553	$	2,696	$	(4,464	)	$	4,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
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	1,286			1,440		1,702		1,198		(4,340		)	1,286
Noncontrolling interest	—			—		329		328		—			657
Total equity	1,286			1,440		2,031		1,526		(4,340		)	1,943
Total liabilities and equity	$	1,272		$	1,943	$	2,553	$	2,696	$	(4,464	)	$	4,000

Condensed Consolidated Statement of Operations



	Three Months Ended June 30, 2019
(in millions)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
Net sales	$	—		$	—		$	1,553		$	138		$	(4	)	$	1,687
Operating costs and expenses:
Cost of materials and other	—			—			1,245			26			(4		)	1,267
Direct operating expenses (exclusive of depreciation and amortization as reflected below)	—			—			87			45			—			132
Depreciation and amortization	—			—			51			25			—			76
Cost of sales	—			—			1,383			96			(4		)	1,475
Selling, general and administrative expenses (exclusive of depreciation and amortization as reflected below)	4			2			14			7			—			27
Depreciation and amortization	—			—			2			—			—			2
Gain on asset disposals	—			—			(9		)	—			—			(9		)
Operating income (loss)	(4		)	(2		)	163			35			—			192
Other income (expense):
Interest expense, net	(2		)	(7		)	(2		)	(15		)	—			(26		)
Other income, net	—			—			3			—			—			3
Income (loss) from subsidiaries	131			165			3			(8		)	(291		)	—
Income (loss) before income taxes	125			156			167			12			(291		)	169
Income tax expense (benefit)	9			—			—			32			—			41
Net income (loss)	116			156			167			(20		)	(291		)	128
Less: Net income attributable to noncontrolling interest	—			—			—			12			—			12
Net income (loss) attributable to CVR Energy stockholders	$	116		$	156		$	167		$	(32	)	$	(291	)	$	116

Condensed Consolidated Statement of Operations



	Three Months Ended June 30, 2018
(in millions)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
Net sales	$	—		$	—		$	1,824		$	93		$	(3	)	$	1,914
Operating costs and expenses:
Cost of materials and other	—			—			1,544			19			(3		)	1,560
Direct operating expenses (exclusive of depreciation and amortization as reflected below)	—			—			94			46			—			140
Depreciation and amortization	—			—			47			21			—			68
Cost of sales	—			—			1,685			86			(3		)	1,768
Selling, general and administrative expenses (exclusive of depreciation and amortization as reflected below)	5			4			16			6			—			31
Depreciation and amortization	—			1			2			—			—			3
Loss on asset disposals	—			—			5			—			—			5
Operating income (loss)	(5		)	(5		)	116			1			—			107
Other income (expense):
Interest expense, net	—			(9		)	(2		)	(15		)	—			(26		)
Other income, net	—			—			2			—			—			2
Income (loss) from subsidiaries	47			117			(11		)	(13		)	(140		)	—
Income (loss) before income taxes	42			103			105			(27		)	(140		)	83
Income tax expense (benefit)	(1		)	—			—			16			—			15
Net income (loss)	43			103			105			(43		)	(140		)	68
Less: Net income attributable to noncontrolling interest	—			—			36			(11		)	—			25
Net income (loss) attributable to CVR Energy stockholders	$	43		$	103		$	69		$	(32	)	$	(140	)	$	43

Condensed Consolidated Statement of Operations



	Six Months Ended June 30, 2019
(in millions)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
Net sales	$	—		$	—		$	2,948		$	230		$	(5	)	$	3,173
Operating costs and expenses:
Cost of materials and other	—			—			2,323			50			(5		)	2,368
Direct operating expenses (exclusive of depreciation and amortization as reflected below)	—			—			178			80			—			258
Depreciation and amortization	—			—			99			42			—			141
Cost of sales	—			—			2,600			172			(5		)	2,767
Selling, general and administrative expenses (exclusive of depreciation and amortization as reflected below)	9			4			30			14			—			57
Depreciation and amortization	—			—			3			1			—			4
(Gain) loss on asset disposals	—			—			(8		)	1			—			(7		)
Operating income (loss)	(9		)	(4		)	323			42			—			352
Other income (expense):
Interest expense, net	(4		)	(12		)	(6		)	(30		)	—			(52		)
Other income, net	—			—			6			—			—			6
Income (loss) from subsidiaries	252			324			(4		)	(17		)	(555		)	—
Income (loss) before income taxes	239			308			319			(5		)	(555		)	306
Income tax expense (benefit)	22			—			—			54			—			76
Net income (loss)	217			308			319			(59		)	(555		)	230
Less: Net income attributable to noncontrolling interest	—			—			5			8			—			13
Net income (loss) attributable to CVR Energy stockholders	$	217		$	308		$	314		$	(67	)	$	(555	)	$	217

Condensed Consolidated Statement of Operations



	Six Months Ended June 30, 2018
(in millions)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
Net sales	$	—		$	—		$	3,281		$	173		$	(3	)	$	3,451
Operating costs and expenses:
Cost of materials and other	—			—			2,700			42			(3		)	2,739
Direct operating expenses (exclusive of depreciation and amortization as reflected below)	—			—			186			85			—			271
Depreciation and amortization	—			—			94			37			—			131
Cost of sales	—			—			2,980			164			(3		)	3,141
Selling, general and administrative expenses (exclusive of depreciation and amortization as reflected below)	8			5			30			12			—			55
Depreciation and amortization	—			1			4			1			—			6
Loss on asset disposals	—			—			4			1			—			5
Operating income (loss)	(8		)	(6		)	263			(5		)	—			244
Other income (expense):
Interest expense, net	—			(17		)	(6		)	(30		)	—			(53		)
Other income, net	—			—			3			—			—			3
Income (loss) from subsidiaries	109			261			(23		)	(24		)	(323		)	—
Income (loss) before income taxes	101			238			237			(59		)	(323		)	194
Income tax expense (benefit)	(2		)	—			—			35			—			33
Net income (loss)	103			238			237			(94		)	(323		)	161
Less: Net income attributable to noncontrolling interest	—			—			81			(23		)	—			58
Net income (loss) attributable to CVR Energy stockholders	$	103		$	238		$	156		$	(71	)	$	(323	)	$	103

Condensed Consolidated Statement of Cash Flows



	Six Months Ended June 30, 2019
(in millions)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
Net cash provided by (used in) operating activities	$	(59	)	$	(8	)	$	391		$	60		$	—		$	384

Cash flows from investing activities:
Capital expenditures	—			(1		)	(48		)	(6		)	—			(55		)
Turnaround expenditures	—			—			(24		)	—			—			(24		)
Investment in affiliates, net of return of investment	512			107			160			27			(806		)	—
Other investing activities	—			—			35			1			—			36
Net cash provided by (used in) investing activities	512			106			123			22			(806		)	(43		)

Cash flows from financing activities:
Dividends to CVR Energy stockholders	(150		)	—			—			—			—			(150		)
Acquisition of CVR Refining common units	(301		)	—			—			—			—			(301		)
Distributions to CVR Partners’ noncontrolling interest holders	—			—			—			(14		)	—			(14		)
Distributions or intercompany advances to other CVR Energy subsidiaries	—			(22		)	(725		)	(59		)	806			—
Other financing activities	—			—			(2		)	(2		)	—			(4		)
Net cash provided by (used in) financing activities	(451		)	(22		)	(727		)	(75		)	806			(469		)
Net increase (decrease) in cash and cash equivalents	2			76			(213		)	7			—			(128		)
Cash and cash equivalents, beginning of period	3			340			261			64			—			668
Cash and cash equivalents, end of period	$	5		$	416		$	48		$	71		$	—		$	540

Condensed Consolidated Statement of Cash Flows



	Six Months Ended June 30, 2018
(in millions)	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
Net cash provided by (used in) operating activities	$	67		$	(15	)	$	310		$	(125	)	$	1		$	238

Cash flows from investing activities:
Capital expenditures	—			(2		)	(32		)	(9		)	—			(43		)
Turnaround expenditures	—			—			(5		)	—			—			(5		)
Investment in affiliates, net of return of investment	21			444			241			171			(877		)	—
Other investing activities	—			—			(2		)	—			—			(2		)
Net cash provided by (used in) investing activities	21			442			202			162			(877		)	(50		)

Cash flows from financing activities:
Dividends to CVR Energy stockholders	(87		)	—			—			—			—			(87		)
Distributions to CVR Refining or CVR Partners’ noncontrolling interest holders	—			—			—			(48		)	—			(48		)
Distributions or intercompany advances to other CVR Energy subsidiaries	—			(337		)	(530		)	(9		)	876			—
Other financing activities	—			—			—			(1		)	—			(1		)
Net cash provided by (used in) financing activities	(87		)	(337		)	(530		)	(58		)	876			(136		)
Net increase (decrease) in cash and cash equivalents	1			90			(18		)	(21		)	—			52
Cash and cash equivalents, beginning of period	4			163			264			51			—			482
Cash and cash equivalents, end of period	$	5		$	253		$	246		$	30		$	—		$	534