| Guarantor Consolidating Balance Sheet |
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 | — |
| | — |
| | 1,425 |
| | 1,020 |
| | — |
| | 2,445 |
| Investment in and advances from subsidiaries | 1,192 |
| | 1,601 |
| | 173 |
| | 1,440 |
| | (4,406 | ) | | — |
| Other long-term assets | — |
| | 1 |
| | 123 |
| | 45 |
| | — |
| | 169 |
| Total assets | $ | 1,232 |
| | $ | 1,943 |
| | $ | 2,447 |
| 200,000 |
| $ | 2,709 |
| 200,000 |
| $ | (4,424 | ) | 200,000 |
| $ | 3,907 |
| 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 | (24 | ) | | — |
| | — |
| | 386 |
| | — |
| | 362 |
| Other long-term liabilities | 3 |
| | — |
| | 7 |
| | 4 |
| | — |
| | 14 |
| Total long-term liabilities | (21 | ) | | 496 |
| | 155 |
| — |
| 1,019 |
| — |
| (106 | ) | — |
| 1,543 |
| Commitments and contingencies |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| Equity: | | | | | | | | | | | | Total CVR stockholders’ equity | 1,246 |
| | 1,440 |
| | 1,936 |
| | 924 |
| | (4,300 | ) | | 1,246 |
| Noncontrolling interest | — |
| | — |
| | — |
| | 622 |
| | — |
| | 622 |
| Total equity | 1,246 |
| | 1,440 |
| | 1,936 |
| | 1,546 |
| | (4,300 | ) | | 1,868 |
| Total liabilities and equity | $ | 1,232 |
| | $ | 1,943 |
| | $ | 2,447 |
| — |
| $ | 2,709 |
| — |
| $ | (4,424 | ) | — |
| $ | 3,907 |
|
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 | — |
| | — |
| | 1,513 |
| | 1,075 |
| | — |
| | 2,588 |
| Investment in and advances from subsidiaries | 897 |
| | 1,596 |
| | 189 |
| | 1,259 |
| | (3,941 | ) | | — |
| Other long-term assets | 1 |
| | 1 |
| | 91 |
| | 48 |
| | — |
| | 141 |
| Total assets | $ | 924 |
| | $ | 1,761 |
| | $ | 2,570 |
| — |
| $ | 2,517 |
| — |
| $ | (3,965 | ) | — |
| $ | 3,807 |
| 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 | (8 | ) | | — |
| | — |
| | 394 |
| | — |
| | 386 |
| Other long-term liabilities | — |
| | — |
| | 4 |
| | 5 |
| | — |
| | 9 |
| Total long-term liabilities | (8 | ) | | 496 |
| | 276 |
| — |
| 1,025 |
| — |
| (230 | ) | — |
| 1,559 |
| Commitments and contingencies |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| Equity: | | | | | | | | | | | | Total CVR stockholders’ equity | 919 |
| | 1,260 |
| | 1,831 |
| | 620 |
| | (3,711 | ) | | 919 |
| Noncontrolling interest | — |
| | — |
| | — |
| | 785 |
| | — |
| | 785 |
| Total equity | 919 |
| | 1,260 |
| | 1,831 |
| — |
| 1,405 |
| — |
| (3,711 | ) | — |
| 1,704 |
| Total liabilities and equity | $ | 924 |
| | $ | 1,761 |
| | $ | 2,570 |
| — |
| $ | 2,517 |
| — |
| $ | (3,965 | ) | — |
| $ | 3,807 |
|
|
| Guarantor Consolidated Statement of Operations |
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 | — |
| | — |
| | 364 |
| | 159 |
| | — |
| | 523 |
| Depreciation and amortization | — |
| | — |
| | 130 |
| | 72 |
| | — |
| | 202 |
| Cost of sales | — |
| | — |
| | 6,095 |
| | 319 |
| | (6 | ) | | 6,408 |
| 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 | ) | | 611 |
| | (6 | ) | | — |
| | 587 |
| Other income (expense): | | | | | | | | | | | | Interest expense, net | — |
| | (32 | ) | | (7 | ) | | (63 | ) | | — |
| | (102 | ) | Other income, net | — |
| | — |
| | 9 |
| | 6 |
| | — |
| | 15 |
| Income (loss) from subsidiaries | 303 |
| | 611 |
| | (46 | ) | | 578 |
| | (1,446 | ) | | — |
| Income (loss) before income taxes | 286 |
| | 578 |
| | 567 |
| | 515 |
| | (1,446 | ) | | 500 |
| Income tax expense (benefit) | (3 | ) | | — |
| | — |
| | 92 |
| | — |
| | 89 |
| Net income (loss) | 289 |
| | 578 |
| | 567 |
| | 423 |
| | (1,446 | ) | | 411 |
| Less: Net income attributable to noncontrolling interest | — |
| | — |
| | — |
| | 122 |
| | — |
| | 122 |
| Net income (loss) attributable to CVR Energy stockholders | $ | 289 |
| | $ | 578 |
| | $ | 567 |
| | $ | 301 |
| | $ | (1,446 | ) | | $ | 289 |
| | | | | | | | | | | | |
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 | — |
| | — |
| | 441 |
| | 157 |
| | — |
| | 598 |
| Depreciation and amortization | — |
| | — |
| | 129 |
| | 74 |
| | — |
| | 203 |
| Cost of sales | — |
| | — |
| | 5,446 |
| | 316 |
| | (8 | ) | | 5,754 |
| 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 | ) | | 194 |
| | (71 | ) | | — |
| | 107 |
| Other income (expense): | | | | | | | | | | | | Interest expense, net | — |
| | (34 | ) | | (11 | ) | | (64 | ) | | — |
| | (109 | ) | Other income, net | — |
| | — |
| | 1 |
| | 1 |
| | — |
| | 2 |
| Income (loss) from subsidiaries | 246 |
| | 184 |
| | (88 | ) | | 148 |
| | (490 | ) | | — |
| Income (loss) before income taxes | 231 |
| | 149 |
| | 96 |
| | 14 |
| | (490 | ) | | — |
| Income tax benefit | (4 | ) | | — |
| | — |
| | (213 | ) | | — |
| | (217 | ) | Net income (loss) | 235 |
| | 149 |
| | 96 |
| | 227 |
| | (490 | ) | | 217 |
| Less: Net loss attributable to noncontrolling interest | — |
| | — |
| | — |
| | (18 | ) | | — |
| | (18 | ) | Net income (loss) attributable to CVR Energy stockholders | $ | 235 |
| | $ | 149 |
| | $ | 96 |
| | $ | 245 |
| | $ | (490 | ) | | $ | 235 |
| | | | | | | | | | | | |
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 | — |
| | — |
| | 3,780 |
| | 93 |
| | (6 | ) | | 3,867 |
| Direct operating expenses | — |
| | — |
| | 392 |
| | 149 |
| | — |
| | 541 |
| Depreciation and amortization | — |
| | — |
| | 126 |
| | 58 |
| | — |
| | 184 |
| Cost of sales | — |
| | — |
| | 4,298 |
| | 300 |
| | (6 | ) | | 4,592 |
| 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 | ) | | 113 |
| | (30 | ) | | — |
| | 70 |
| Other income (expense): | | | | | | | | | | | | Interest expense, net | — |
| | (32 | ) | | (2 | ) | | (49 | ) | | — |
| | (83 | ) | Other income, net | 5 |
| | — |
| | — |
| | (3 | ) | | — |
| | 2 |
| Income (loss) from subsidiaries | 26 |
| | 103 |
| | (64 | ) | | 78 |
| | (143 | ) | | — |
| Income (loss) before income taxes | 19 |
| | 70 |
| | 47 |
| | (4 | ) | | (143 | ) | | (11 | ) | Income tax benefit | (6 | ) | | — |
| | — |
| | (14 | ) | | — |
| | (20 | ) | Net income (loss) | 25 |
| | 70 |
| | 47 |
| | 10 |
| | (143 | ) | | 9 |
| Less: Net loss attributable to noncontrolling interest | — |
| | — |
| | — |
| | (16 | ) | | — |
| | (16 | ) | Net income (loss) attributable to CVR Energy stockholders | $ | 25 |
| | $ | 70 |
| | $ | 47 |
| | $ | 26 |
| | $ | (143 | ) | | $ | 25 |
| | | | | | | | | | | | |
|
| Guarantor Consolidated Statement of Cash Flows |
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 | 38 |
| | (31 | ) | | 687 |
| | (77 | ) | | 3 |
| | 620 |
| | | | | | | | | | | | | Cash flows from investing activities: | | | | | | | | | | | | Capital expenditures | (3 | ) | | — |
| | (79 | ) | | (20 | ) | | — |
| | (102 | ) | Investment in affiliates, net of return of investment
| 202 |
| | 630 |
| | 679 |
| | 435 |
| | (1,946 | ) | | — |
| Other investing activities | — |
| | — |
| | — |
| | 2 |
| | — |
| | 2 |
| Net cash provided by (used in) investing activities | 199 |
| | 630 |
| | 600 |
| | 417 |
| | (1,946 | ) | | (100 | ) | | | | | | | | | | | | | 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 | (30 | ) | | (32 | ) | | 273 |
| | (33 | ) | | (10 | ) | | 168 |
| | | | | | | | | | | | | Cash flows from investing activities: | | | | | | | | | | | | Capital expenditures | (4 | ) | | — |
| | (101 | ) | | (15 | ) | | — |
| | (120 | ) | Investment in affiliates, net of return of investment
| 207 |
| | 1,083 |
| | 112 |
| | 158 |
| | (1,636 | ) | | (76 | ) | Net cash provided by (used in) investing activities | 203 |
| | 1,083 |
| | 11 |
| | 143 |
| | (1,636 | ) | | (196 | ) | | | | | | | | | | | | | 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 | (29 | ) | | (26 | ) | | 380 |
| | (45 | ) | | (13 | ) | | 267 |
| | | | | | | | | | | | | Cash flows from investing activities: | | | | | | | | | | | | Capital expenditures | (10 | ) | | — |
| | (102 | ) | | (21 | ) | | — |
| | (133 | ) | Acquisition of CVR Nitrogen, net of cash acquired
| — |
| | — |
| | — |
| | (64 | ) | | — |
| | (64 | ) | Investment in affiliates, net of return of investment
| 214 |
| | 227 |
| | (157 | ) | | 281 |
| | (570 | ) | | (5 | ) | Other investing activities | — |
| | — |
| | 1 |
| | — |
| | — |
| | 1 |
| Net cash provided by (used in) investing activities | 204 |
| | 227 |
| | (258 | ) | | 196 |
| | (570 | ) | | (201 | ) | | | | | | | | | | | | | 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 |
|
|