(15) Guarantor Financial Information

On January 29, 2019, in connection with CVRR Unit Purchase, CVR Energy, Inc. became a guarantor of CVR Refining’s 2022 Senior Notes pursuant to a supplemental indenture (the “CVR Energy Guarantee”). The CVR Energy Guarantee is full and unconditional and joint and several. Following the cessation of trading for CVRR’s common units and the execution of the CVR Energy Guarantee, the Company is providing condensed consolidating financial statements in lieu of standalone CVRR financial statements pursuant to Rule 3-10 of Regulation S-X.

The guarantor financial information provided below reflects condensed consolidating financial information of the Company. The following outlines the composition of each column in the condensed consolidating financial statements:


•	Parent - represents CVR Energy, Inc. which, as of January 29, 2019, guarantees the 2022 Senior Notes;


•	Subsidiary Issuer - represents Refining LLC and Coffeyville Finance, Inc. (“Coffeyville Finance”), which are the issuers of the 2022 Senior Notes. Coffeyville Finance has no assets or operations, thus the columns presents the financial position, results and cash flows of Refining LLC;


•	Guarantor Subsidiaries - represents the operating subsidiaries of Refining LLC, which also represent the operating subsidiaries of CVR Refining, and CRLLC, an indirect wholly-owned subsidiary of CVR Energy. CRLLC’s activities consist of general and administrative functions for the Company’s operating businesses; and


•	Non-Guarantor Subsidiaries - represents CVR Partners and other subsidiaries of CVR Energy that do not guarantee the 2022 Senior Notes.

For the purposes of this financial information, investments in consolidated subsidiaries are accounted for under the equity method of accounting. Intercompany transactions between entities within each column have been eliminated within the column. Eliminations for transactions with entities reflected in other columns are reflected in the “Intercompany Elimination” column.

Condensed Consolidating Balance Sheet



	December 31, 2018
	Parent		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Intercompany Elimination			Consolidated
(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	3	$	340	$	252	$	73	$	—		$	668
Accounts receivable	—		—		107		62		—			169
Intercompany receivable	6		—		4		—		(10		)	—
Inventories	—		—		316		64		—			380
Prepaid expenses and other current assets	31		1		47		5		(8		)	76
Total current assets	40		341		726		204		(18		)	1,293
Property, plant and equipment, net of accumulated depreciation	—		—		1,410		1,020		—			2,430
Investment in and advances from subsidiaries	1,263		1,694		173		1,533		(4,663		)	—
Other long-term assets	—		1		231		45		—			277
Total assets	$	1,303	$	2,036	$	2,540	$	2,802	$	(4,681	)	$	4,000
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Note payable and capital lease obligations	$	—	$	—	$	3	$	—	$	—		$	3
Accounts payable	1		—		291		29		(1		)	320
Intercompany payables	—		—		—		10		(10		)	—
Other current liabilities	6		7		62		105		(7		)	173
Total current liabilities	7		7		356		144		(18		)	496
Long-term liabilities:
Long-term debt and capital lease obligations, net of current portion	—		496		42		629		—			1,167
Investment and advances from subsidiaries	—		—		106		—		(106		)	—
Deferred income taxes	7		—		—		373		—			380
Other long-term liabilities	3		—		7		4		—			14
Total long-term liabilities	10		496		155		1,006		(106		)	1,561
Commitments and contingencies
Equity:
Total CVR stockholders’ equity	1,286		1,533		2,029		995		(4,557		)	1,286
Noncontrolling interest	—		—		—		657		—			657
Total equity	1,286		1,533		2,029		1,652		(4,557		)	1,943
Total liabilities and equity	$	1,303	$	2,036	$	2,540	$	2,802	$	(4,681	)	$	4,000

Condensed Consolidating Balance Sheet



	December 31, 2017
	Parent		Subsidiary Issuer		Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Intercompany Elimination			Consolidated
(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	4	$	163	$	261	$	54	$	—		$	482
Accounts receivable	—		—		169		10		—			179
Intercompany receivables	9		—		8		—		(17		)	—
Inventories	—		—		316		53		—			369
Prepaid expenses and other current assets	13		1		23		18		(7		)	48
Total current assets	26		164		777		135		(24		)	1,078
Property, plant and equipment, net of accumulated depreciation	—		—		1,498		1,075		—			2,573
Investment in and advances from subsidiaries	998		1,743		189		1,404		(4,334		)	—
Other long-term assets	1		1		252		48		—			302
Total assets	$	1,025	$	1,908	$	2,716	$	2,662	$	(4,358	)	$	3,953
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Note payable and capital lease obligations	$	—	$	—	$	2	$	—	$	—		$	2
Accounts payable	1		—		310		24		(1		)	334
Intercompany payables	—		—		—		17		(17		)	—
Other current liabilities	12		5		151		46		(6		)	208
Total current liabilities	13		5		463		87		(24		)	544
Long-term liabilities:
Long-term debt and capital lease obligations, net of current portion	—		496		42		626		—			1,164
Investment and advances from subsidiaries	—		—		230		—		(230		)	—
Deferred income taxes	24		—		—		389		—			413
Other long-term liabilities	—		—		4		5		—			9
Total long-term liabilities	24		496		276		1,020		(230		)	1,586
Commitments and contingencies
Equity:
Total CVR stockholders’ equity	988		1,407		1,977		720		(4,104		)	988
Noncontrolling interest	—		—		—		835		—			835
Total equity	988		1,407		1,977		1,555		(4,104		)	1,823
Total liabilities and equity	$	1,025	$	1,908	$	2,716	$	2,662	$	(4,358	)	$	3,953

Condensed Consolidating Statement of Operations



	Year Ended December 31, 2018
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Eliminations			Consolidated
(in millions)
Net sales	$	—		$	—		$	6,779		$	351		$	(6	)	$	7,124
Operating costs and expenses:
Cost of materials and other	—			—			5,601			88			(6		)	5,683
Direct operating expenses	—			—			358			159			—			517
Depreciation and amortization	—			—			191			72			—			263
Cost of sales	—			—			6,150			319			(6		)	6,463
Selling, general and administrative expenses	17			1			60			34			—			112
Depreciation and amortization	—			—			8			3			—			11
Loss on asset disposals	—			—			5			1			—			6
Operating income (loss)	(17		)	(1		)	556			(6		)	—			532
Other income (expense):
Interest expense, net	—			(32		)	(7		)	(63		)	—			(102		)
Other income, net	—			—			9			6			—			15
Income (loss) from subsidiaries	273			558			(46		)	524			(1,309		)	—
Income (loss) before income taxes	256			525			512			461			(1,309		)	445
Income tax expense (benefit)	(3		)	—			—			82			—			79
Net income (loss)	259			525			512			379			(1,309		)	366
Less: Net income attributable to noncontrolling interest	—			—			—			107			—			107
Net income (loss) attributable to CVR Energy stockholders	$	259		$	525		$	512		$	272		$	(1,309	)	$	259

Condensed Consolidating Statement of Operations



	Year Ended December 31, 2017
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
(in millions)
Net sales	$	—		$	—		$	5,665		$	331		$	(8	)	$	5,988
Operating costs and expenses:
Cost of materials and other	—			—			4,876			85			(8		)	4,953
Direct operating expenses	—			—			359			157			—			516
Depreciation and amortization	—			—			173			74			—			247
Cost of sales	—			—			5,408			316			(8		)	5,716
Selling, general and administrative expenses	15			1			14			83			—			113
Depreciation and amortization	—			—			8			3			—			11
Loss on asset disposals	—			—			3			—			—			3
Operating income (loss)	(15		)	(1		)	232			(71		)	—			145
Other income (expense):
Interest expense, net	—			(34		)	(11		)	(64		)	—			(109		)
Other income, net	—			—			1			1			—			2
Income (loss) from subsidiaries	272			222			(88		)	186			(592		)	—
Income (loss) before income taxes	257			187			134			52			(592		)	38
Income tax benefit	(6		)	—			—			(214		)	—			(220		)
Net income (loss)	263			187			134			266			(592		)	258
Less: Net loss attributable to noncontrolling interest	—			—			—			(5		)	—			(5		)
Net income (loss) attributable to CVR Energy stockholders	$	263		$	187		$	134		$	271		$	(592	)	$	263

Condensed Consolidating Statement of Operations



	Year Ended December 31, 2016
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
(in millions)
Net sales	$	—		$	—		$	4,432		$	356		$	(6	)	$	4,782
Operating costs and expenses:
Cost of materials and other	—			—			3,779			93			(5		)	3,867
Direct operating expenses	—			—			354			149			—			503
Depreciation and amortization	—			—			162			58			—			220
Cost of sales	—			—			4,295			300			(5		)	4,590
Selling, general and administrative expenses	12			1			15			82			—			110
Depreciation and amortization	—			—			6			3			—			9
Loss on asset disposals	—			—			—			1			—			1
Operating income (loss)	(12		)	(1		)	116			(30		)	(1		)	72
Other income (expense):
Interest expense, net	—			(32		)	(2		)	(49		)	—			(83		)
Other income, net	5			—			—			(3		)	—			2
Income (loss) from subsidiaries	27			105			(64		)	79			(147		)	—
Income (loss) before income taxes	20			72			50			(3		)	(148		)	(9		)
Income tax benefit	(5		)	—			—			(14		)	—			(19		)
Net income (loss)	25			72			50			11			(148		)	10
Less: Net loss attributable to noncontrolling interest	—			—			—			(15		)	—			(15		)
Net income (loss) attributable to CVR Energy stockholders	$	25		$	72		$	50		$	26		$	(148	)	$	25

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2018
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
(in millions)
Net cash provided by (used in) operating activities	37			(31		)	695			(74		)	1			628

Cash flows from investing activities:
Capital expenditures	(3		)	—			(79		)	(20		)	—			(102		)
Turnaround expenditures	—			—			(8		)	—			—			(8		)
Investment in affiliates, net of return of investment	203			630			679			432			(1,944		)	—
Other investing activities	—			—			—			2			—			2
Net cash provided by (used in) investing activities	200			630			592			414			(1,944		)	(108		)

Cash flows from financing activities:
CVR Energy shareholder dividends	(238		)	—			—			—			—			(238		)
CVR Refining unitholder distributions	—			—			(93		)	—			—			(93		)
Distributions or intercompany advances to other CVR Energy subsidiaries	—			(422		)	(1,202		)	(319		)	1,943			—
Other financing activities	—			—			(1		)	(2		)	—			(3		)
Net cash provided by (used in) financing activities	(238		)	(422		)	(1,296		)	(321		)	1,943			(334		)
Net increase (decrease) in cash and cash equivalents	(1		)	177			(9		)	19			—			186
Cash and cash equivalents, beginning of period	4			163			261			54			—			482
Cash and cash equivalents, end of period	$	3		$	340		$	252		$	73		$	—		$	668

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2017
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
(in millions)
Net cash provided by (used in) operating activities	(29		)	(32		)	392			(73		)	(10		)	248

Cash flows from investing activities:
Capital expenditures	(4		)	—			(101		)	(15		)	—			(120		)
Turnaround expenditures	—			—			(80		)	—			—			(80		)
Investment in affiliates, net of return of investment	206			1,083			73			198			(1,636		)	(76		)
Net cash provided by (used in) investing activities	202			1,083			(108		)	183			(1,636		)	(276		)

Cash flows from financing activities:
CVR Energy dividends	(174		)	—			—			—			—			(174		)
CVR Refining unitholder distributions	—			—			(47		)	—			—			(47		)
CVR Partners unitholder distributions	—			—			—			(2		)	—			(2		)
Distributions or intercompany advances to other CVR Energy subsidiaries	—			(1,190		)	(338		)	(118		)	1,646			—
Other financing activities	—			—			(2		)	(1		)	—			(3		)
Net cash provided by (used in) financing activities	(174		)	(1,190		)	(387		)	(121		)	1,646			(226		)
Net decrease in cash and cash equivalents	(1		)	(139		)	(103		)	(11		)	—			(254		)
Cash and cash equivalents, beginning of period	5			302			364			65			—			736
Cash and cash equivalents, end of period	$	4		$	163		$	261		$	54		$	—		$	482

Condensed Consolidating Statement of Cash Flows



	Year Ended December 31, 2016
	Parent			Subsidiary Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Intercompany Elimination			Consolidated
(in millions)
Net cash provided by (used in) operating activities	(30		)	(26		)	444			(38		)	(13		)	337

Cash flows from investing activities:
Capital expenditures	(10		)	—			(100		)	(23		)	—			(133		)
Turnaround expenditures	—			—			(70		)	—			—			(70		)
Acquisition of CVR Nitrogen, net of cash acquired	—			—			—			(64		)	—			(64		)
Investment in affiliates, net of return of investment	215			227			(155		)	278			(570		)	(5		)
Other investing activities	—			—			3			(2		)	—			1
Net cash provided by (used in) investing activities	205			227			(322		)	189			(570		)	(271		)

Cash flows from financing activities:
Proceeds on issuance of 2023 Notes, net of original issue discount	—			—			—			629			—			629
Principal and premium payments on 2021 Notes	—			—			—			(322		)	—			(322		)
Payments of revolving debt	—			—			—			(49		)	—			(49		)
Principal payments on CRNF credit facility	—			—			—			(125		)	—			(125		)
CVR Energy shareholder dividends	(174		)	—			—			—			—			(174		)
CVR Partners unitholder distributions	—			—			—			(42		)	—			(42		)
Distributions or intercompany advances to other CVR Energy subsidiaries	—			(69		)	(280		)	(234		)	583			—
Other financing activities	(11		)	—			(1		)	—			—			(12		)
Net cash provided by (used in) financing activities	(185		)	(69		)	(281		)	(143		)	583			(95		)
Net increase (decrease) in cash and cash equivalents	(10		)	132			(159		)	8			—			(29		)
Cash and cash equivalents, beginning of period	15			170			523			57			—			765
Cash and cash equivalents, end of period	$	5		$	302		$	364		$	65		$	—		$	736