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Recent Accounting Pronouncements and Accounting Changes (Tables)
 9 Months Ended
Sep. 30, 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 Topic 842 Adoption on Condensed Consolidated Balance Sheet as of January 1, 2019
(in millions)
December 31, 2018
As Stated (1)
 
Effect of Adoption of
Topic 842 - Leases (Unaudited)
 
January 1, 2019
As Adjusted
Current assets:
 
 
 
 
 
Prepaid expenses and other current assets
$
76

 
$
(3
)
(2)
$
73

Total currents assets
1,293

 
(3
)
 
1,290

Property, plant and equipment, net
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
$
176

 
$
16

(5)
$
192

Total current liabilities
496

 
16

 
512

Long-term debt and finance lease obligations
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, for which the Recast Form 8-K for 2018 was filed on June 12, 2019, prior to the adoption of Topic 842.
(2)
Represents lease prepayments reclassified to ROU 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 ROU 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 three and nine months ended September 30, 2018 condensed consolidated statement of operations and the nine months ended September 30, 2018 condensed consolidated statement of cash flows have been recast. 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 for the Three Months Ended September 30, 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)
$
121

 
$
(2
)
 
$
119

Depreciation and amortization
49

 
14

 
63

Income tax expense
35

 
(2
)
 
33

Net income
121

 
(11
)
 
110

Less: Net income attributable to noncontrolling interest
31

 
(2
)
 
29

Net income attributable to CVR Energy stockholders
$
90

 
$
(9
)
 
$
81


Effect of Turnaround Accounting on Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 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)
$
394

 
$
(4
)
 
$
390

Depreciation and amortization
151

 
45

 
196

Income tax expense
73

 
(8
)
 
65

Net income
304

 
(33
)
 
271

Less: Net income attributable to noncontrolling interest
97

 
(11
)
 
86

Net income attributable to CVR Energy stockholders
$
207

 
$
(22
)
 
$
185

 
 
 
 
 
 
Condensed Consolidated Statement of Cash Flows
 
 
 
 
 
Net cash provided by operating activities
$
519

 
$
7

 
$
526

Net cash used by investing activities
$
(67
)
 
$
(7
)
 
$
(74
)