CVR PARTNERS, LPUAN

CVR PARTNERS, LP Segments Disclosure

10-KFiled Feb 18, 20262 min read
(12) Business Segments
CVR Partners has one operating and reportable segment: Nitrogen Fertilizer. The Partnership derives revenue by producing and marketing nitrogen fertilizer products within the United States, which are used by farmers to improve the yield and quality of their crops. The segment determination is based on the management approach, reflecting the internal reporting used by the Chief Operating Decision Maker (“CODM”), the Partnership’s Chief Executive Officer, to evaluate performance and make strategic decisions.
The CODM evaluates the performance of the Nitrogen Fertilizer Segment and decides how to allocate resources based on net income, which is reported in the Consolidated Statements of Operations. The CODM uses net income to assess the income generated by the Nitrogen Fertilizer Segment and to decide whether to recommend that the Board reinvest profits into the Partnership or pay distributions. Net income is also used to analyze performance against the budget and the Partnership’s competitors.
While segment assets are not reported to, or used by, the CODM to allocate resources or to assess performance of the segment, total assets are disclosed in the Consolidated Balance Sheets.
The following table presents the operating results and capital expenditures information for the Nitrogen Fertilizer Segment:
Year Ended December 31,
(in thousands)202520242023
Net sales$606,038 $525,324 $681,477 
Less:
Feedstocks58,715 55,427 76,831 
Distribution costs49,304 49,898 52,036 
Other costs of materials (1)
(1,276)(1,184)5,510 
Cost of materials and other106,743 104,141 134,377 
Less:
Direct operating expenses (exclusive of depreciation and amortization and turnaround expenses)237,336 213,736 233,138 
Turnaround expenses16,722 486 1,778 
Depreciation and amortization81,867 88,096 79,720 
Selling, general and administrative expenses33,594 28,414 29,523 
Interest expense35,837 34,044 34,317 
Interest income(5,492)(4,217)(5,664)
Other segment items (2)
769 (276)1,855 
Net income$98,662 $60,900 $172,433 
Capital expenditures$56,923 $37,063 $29,081 
(1)Other costs of materials includes inventory cost adjustments and lease expense.
(2)Other segment items includes (gain) loss on asset disposal, other (income) expense, and income tax expense.

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 19, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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