Consolidated Statements of Oper
Consolidated Statements of Operations (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Net sales | $991 | $1,161 | 1671.6 | 1828.3 |
Cost of sales | 564 | 691.1 | 1082.3 | 1087.2 |
Gross margin | 427 | 469.9 | 589.3 | 741.1 |
Selling, general and administrative | 16.5 | 18.1 | 31.9 | 36.3 |
Other operating - net | 15.3 | -0.3 | 38.5 | 1.1 |
Operating earnings | 395.2 | 452.1 | 518.9 | 703.7 |
Interest expense | 0.3 | 0.4 | 0.7 | 0.8 |
Interest income | -0.7 | -6.6 | (2) | -15.1 |
Other non-operating - net | -0.1 | -2.1 | -0.4 | -4.8 |
Earnings before income taxes and equity in earnings (loss) of unconsolidated affiliates | 395.7 | 460.4 | 520.6 | 722.8 |
Income tax provision | 146.8 | 159.9 | 188 | 246.7 |
Equity in (earnings) loss of unconsolidated affiliates - net of taxes | -0.7 | 7.2 | -1.4 | 8.9 |
Net earnings | 248.2 | 307.7 | 331.2 | 485 |
Less: Net earnings attributable to the noncontrolling interest | 35.2 | 19.1 | 55.5 | 37.6 |
Net earnings attributable to common stockholders | $213 | 288.6 | 275.7 | 447.4 |
Net earnings per share attributable to common stockholders: | ||||
Basic (in dollars per share) | 4.4 | 5.11 | 5.69 | 7.94 |
Diluted (in dollars per share) | 4.33 | 5.01 | 5.61 | 7.78 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 48.4 | 56.4 | 48.4 | 56.4 |
Diluted (in shares) | 49.2 | 57.6 | 49.2 | 57.5 |
Dividends declared per common share (in dollars per share) | 0.1 | 0.1 | 0.2 | 0.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (USD $) | ||||
In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Net earnings | 248.2 | 307.7 | 331.2 | $485 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 3.8 | 0.1 | 2.3 | -1.3 |
Defined benefit plans - net of taxes | 0.3 | 0.4 | 0.8 | 0.8 |
Unrealized gain (loss) on securities - net of taxes | 11.8 | -1.2 | 7 | -7.2 |
Other comprehensive income (loss) | 15.9 | -0.7 | 10.1 | -7.7 |
Comprehensive income | 264.1 | 307 | 341.3 | 477.3 |
Less: Comprehensive income attributable to the noncontrolling interest | 36.9 | 19.2 | 56.5 | 37 |
Comprehensive income attributable to common stockholders | 227.2 | 287.8 | 284.8 | 440.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
Jun. 30, 2009
| Dec. 31, 2008
| |
Current assets: | ||
Cash and cash equivalents | $816,100,000 | $625,000,000 |
Short-term investments | 105,100,000 | |
Accounts receivable | 137,900,000 | 175,100,000 |
Inventories - net | 213,900,000 | 588,600,000 |
Prepaid income taxes | 26,300,000 | |
Other | 11,400,000 | 18,200,000 |
Total current assets | 1,284,400,000 | 1,433,200,000 |
Property, plant and equipment - net | 738,500,000 | 661,900,000 |
Goodwill | 900,000 | 900,000 |
Asset retirement obligation escrow account | 36,500,000 | 28,800,000 |
Investments in and advances to unconsolidated affiliates | 43,400,000 | 44,800,000 |
Investments in auction rate securities | 136,600,000 | 177,800,000 |
Other assets | 39,100,000 | 40,200,000 |
Total assets | 2,279,400,000 | 2,387,600,000 |
Current liabilities: | ||
Accounts payable and accrued expenses | 175,600,000 | 207,900,000 |
Income taxes payable | 23,100,000 | 14,100,000 |
Customer advances | 70,900,000 | 347,800,000 |
Notes payable | 4,200,000 | 4,100,000 |
Deferred income taxes | 31,400,000 | 52,100,000 |
Distributions payable to noncontrolling interest | 106,000,000 | |
Other | 4,300,000 | 86,100,000 |
Total current liabilities | 309,500,000 | 818,100,000 |
Deferred income taxes | 77,700,000 | 6,200,000 |
Other noncurrent liabilities | 202,500,000 | 212,600,000 |
Stockholders' equity | ||
Preferred stock - $0.01 par value, 50,000,000 shares authorized | 0 | 0 |
Common stock - $0.01 par value, 500,000,000 shares authorized, 2009 - 48,456,310 and 2008 - 48,391,584 shares issued and outstanding | 500,000 | 500,000 |
Paid-in capital | 714,400,000 | 709,400,000 |
Retained earnings | 969,500,000 | 703,400,000 |
Accumulated other comprehensive loss | (66,100,000) | (75,200,000) |
Total stockholders' equity | 1,618,300,000 | 1,338,100,000 |
Noncontrolling interest | 71,400,000 | 12,600,000 |
Total equity | 1,689,700,000 | 1,350,700,000 |
Total liabilities and equity | $2,279,400,000 | $2,387,600,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | ||
Jun. 30, 2009
| Dec. 31, 2008
| |
Consolidated Balance Sheets | ||
Preferred stock, par value per share (in dollars per share) | 0.01 | 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value per share (in dollars per share) | 0.01 | 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares outstanding (in shares) | 48,456,310 | 48,391,584 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | ||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Operating Activities: | ||
Net earnings | 331.2 | $485 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 46.3 | 51.4 |
Deferred income taxes | 45.6 | 39.7 |
Stock compensation expense | 3 | 4.5 |
Excess tax benefit from stock-based compensation | -0.9 | -10.2 |
Unrealized gain on derivatives | -82.9 | -152.8 |
Inventory valuation allowance | (32) | |
Loss (gain) on disposal of property, plant and equipment | 0.8 | -1.6 |
Equity in (earnings) loss of unconsolidated affiliates - net of taxes | 1.4 | -8.9 |
Changes in: | ||
Accounts receivable | 40.4 | -28.2 |
Margin deposits | 11.3 | -3.4 |
Inventories | 407.1 | -137.4 |
Prepaid product and expenses | -3.6 | -8.1 |
Accrued income taxes | 36.5 | 111.3 |
Accounts payable and accrued expenses | -32.3 | 70.5 |
Product exchanges - net | 0.1 | -4.9 |
Customer advances - net | -276.9 | 107.6 |
Other - net | -7.9 | 2 |
Net cash provided by operating activities | 487.2 | 516.5 |
Investing activities: | ||
Additions to property, plant and equipment | -126.9 | -72.8 |
Proceeds from the sale of property, plant and equipment | 5.3 | 2.5 |
Purchases of investment securities | (105) | -354.7 |
Sales and maturities of investment securities | 52.4 | 378.6 |
Deposit to asset retirement obligation escrow account | -7.5 | -6.2 |
Other - net | 1.2 | |
Net cash used in investing activities | -181.7 | -51.4 |
Financing activities: | ||
Dividends paid on common stock | -9.6 | -11.3 |
Distributions to noncontrolling interest | -112.3 | -28.4 |
Issuances of common stock under employee stock plans | 1.1 | 4 |
Excess tax benefit from stock-based compensation | 0.9 | 10.2 |
Net cash used in financing activities | -119.9 | -25.5 |
Effect of exchange rate changes on cash and cash equivalents | 5.5 | -0.3 |
Increase in cash and cash equivalents | 191.1 | 439.3 |
Cash and cash equivalents at beginning of period | 625 | 366.5 |
Cash and cash equivalents at end of period | 816.1 | 805.8 |
Background and Basis of Present
Background and Basis of Presentation | |
3 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Background and Basis of Presentation | 1.Background and Basis of Presentation All references to "CF Holdings," "the Company," "we," "us" and "our" refer to CFIndustries Holdings,Inc. and its subsidiaries, including CFIndustries,Inc. We are one of the largest manufacturers and distributors of nitrogen and phosphate fertilizer products in North America. Our operations are organized into two business segments: the nitrogen segment and the phosphate segment. Our principal products in the nitrogen segment are ammonia, urea and urea ammonium nitrate solution, or UAN. Our principal products in the phosphate segment are diammonium phosphate(DAP) and monoammonium phosphate(MAP). Our core market and distribution facilities are concentrated in the midwestern U.S. grain-producing states. Our principal customers are cooperatives and independent fertilizer distributors. We also export nitrogen and phosphate fertilizer products. The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December31, 2008, in accordance with accounting principles generally accepted in the United States for interim financial reporting. In the opinion of management, these statements reflect all adjustments, consisting only of normal and recurring adjustments that are necessary for the fair representation of the information for the periods presented. Subsequent events have been evaluated through the date these financial statements were issued and filed with the Securities and Exchange Commission(SEC). The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. Operating results for any period presented apply to that period only and are not necessarily indicative of results for any future period. These statements should be read in conjunction with our annual consolidated financial statements. Our Annual Report on Form10-K was filed with the SEC on February26, 2009. Effective January1, 2009, we were required to adopt Statement of Financial Accounting Standards No.160, "Noncontrolling Interests in Consolidated Financial Statementsan amendment of ARBNo.51" (SFAS No.160) and FSP No. EITF03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities" (FSP No. EITF03-6-1). Our consolidated financial statements for the years ended December31, 2008, 2007 and 2006 from the 2008 Form10-K, which have been revised to reflect the retrospective application of SFASNo.160 and FSPNo.EITF03-6-1, were filed in a Form8-K with the SEC on May28, 2009. The preparation of the unaudited interim financial statements requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities, revenue and expenses and certain financial statement disclosures. Actual results could differ from these estimates. Significant es |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Summary of Significant Accounting Policies | 2.Summary of Significant Accounting Policies For a complete discussion of the Company's significant accounting policies, refer to the notes to our audited consolidated financial statements included in our Current Report on Form8-K, filed with the SEC on May28, 2009. |
New Accounting Standards
New Accounting Standards | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
New Accounting Standards | 3.New Accounting Standards Following are summaries of accounting pronouncements that were either recently adopted or may become applicable to our consolidated financial statements. Recently Adopted Pronouncements Statement of Financial Accounting Standards (SFAS) No.160Noncontrolling Interests in Consolidated Financial Statementsan amendment of Accounting Research Bulletin(ARB) No.51. This Statement establishes new accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It requires the recognition of a noncontrolling interest (minority interest) as equity in the consolidated financial statements and separate from the parent's equity. The amount of net income attributable to the noncontrolling interest is included in consolidated net income on the face of the income statement. The Statement clarifies that changes in a parent's ownership interest in a subsidiary that do not result in deconsolidation are equity transactions if the parent retains its controlling financial interest. In addition, this Statement requires that a parent recognize a gain or loss in net income when a subsidiary is deconsolidated. Such gain or loss will be measured using the fair value of the noncontrolling equity investment on the deconsolidation date. The Statement also includes expanded disclosure requirements regarding the interests of the parent and its noncontrolling interest. We adopted SFASNo.160 as of January1, 2009. For additional information, see Note4Canadian Fertilizers Limited. SFAS No.141(R)Business Combinations. This Statement requires the acquirer in a business combination to recognize the assets acquired, the liabilities assumed, contractual contingencies, and contingent consideration at their fair values as of the acquisition date. Additionally, this Statement requires acquisition costs to be expensed as incurred, restructuring costs to be expensed in the period subsequent to the acquisition date, and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date to impact tax expense. The acquirer in an acquisition implemented in stages is required to recognize the identifiable assets and liabilities, as well as the noncontrolling interest in the acquiree, at the full amounts of their fair values. This Statement was effective for business combinations with an acquisition date after December31, 2008. Its adoption did not have an impact on our consolidated financial statements. Financial Accounting Standards Board (FASB) Staff Position(FSP) No. FAS141(R)-1Accounting for Assets Acquired and Liabilities Assumed in a Business Combination that Arise from Contingencies. This FSP amends and clarifies SFASNo.141(R) to require an acquirer to recognize at fair value, at the acquisition date, an asset acquired or liability assumed in a business combination that arises from a contingency if the fair value can be determined during the measurement period. If an acquisition date fair value cannot be determined during the measurement period, it must still be recognized if it is probable the asset existed or a liability had been inc |
Canadian Fertilizers Limited
Canadian Fertilizers Limited | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Canadian Fertilizers Limited | 4.Canadian Fertilizers Limited Canadian Fertilizers Limited (CFL) owns a nitrogen fertilizer complex in Medicine Hat, Alberta, Canada and supplies fertilizer products to CF Industries,Inc. and Viterra,Inc. (Viterra). CF Industries,Inc. owns 49% of CFL's voting common shares and 66% of CFL's nonvoting preferred shares. Viterra owns 34% of the voting common stock and non-voting preferred stock of CFL. The remaining 17% of the voting common stock is owned by GROWMARK,Inc. and LaCoop fdre. CFL is a variable interest entity which we consolidate in accordance with FIN46(R)Consolidation of Variable Interest Entities. CFL's sales revenue for the three and six months ended June30, 2009 was $151.7million and $272.6million, respectively, and for the three and six months ended June30, 2008 was $186.8million and $305.4million, respectively. CFL's assets and liabilities at June30, 2009 were $245.5million and $202.4million, respectively, and at December31, 2008 were $375.2million and $334.1million, respectively. CFIndustries,Inc. operates the Medicine Hat facility pursuant to a management agreement and purchases approximately 66% of the facility's ammonia and urea production pursuant to a product purchase agreement. Both the management agreement and the product purchase agreement can be terminated by either CFIndustries,Inc. or CFL upon a twelve-month notice. Viterra has the right, but not the obligation, to purchase the remaining 34% of the facility's ammonia and urea production under a similar product purchase agreement. To the extent that Viterra does not purchase its 34% of the facility's production, CFIndustries,Inc. is obligated to purchase any remaining amounts. However, since 1995, Viterra has purchased at least 34% of the facility's production each year. Under the product purchase agreements, both CFIndustries,Inc. and Viterra pay the greater of operating cost or market price for purchases. The product purchase agreements also provide that CFL will distribute its net earnings to CFIndustries,Inc. and Viterra annually based on their respective quantities of product purchased from CFL. The distributions to Viterra are reported as financing activities in the consolidated statements of cash flows, as we consider these payments to be similar to dividends. While general creditors of CFL do not have direct recourse to the general credit of CFIndustries,Inc., the product purchase agreement does require CFIndustries,Inc. to advance funds to CFL in the event that CFL is unable to meet its debts as they become due. The amount of each advance would be at least 66% of the deficiency and would be more in any year in which CFIndustries,Inc. purchased more than 66% of Medicine Hat's production. A similar obligation also exists for Viterra's 34% share. CFIndustries,Inc. and Viterra currently manage CFL such that each party is responsible for its share of CFL's fixed costs and that CFL's production volume is managed to meet the parties' combined requirements. Based on the contractual arrangements, CFIndustries,Inc. is the primary beneficiary of CFL as CFIndustries,Inc. receives at least 66% of the economic risks and rewards of CFL. In accordance |
Fair Value Measurements
Fair Value Measurements | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Fair Value Measurements | 5.Fair Value Measurements Effective January1, 2009, we adopted the portions of SFAS No.157Fair Value Measurements (SFAS157), which were deferred under FSP No.FAS157-2, for nonfinancial assets and liabilities measured at fair value on a nonrecurring basis. The adoption of this FSP did not have a significant impact on our financial position or results of operations. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents assets and liabilities included in our consolidated balance sheet that are recognized at fair value on a recurring basis, and indicates the fair value hierarchy utilized to determine such fairvalue. Balance as of June30, 2009 Quoted Prices in Active Markets (Level1) Significant Other Observable Inputs (Level2) Significant Unobservable Inputs (Level3) (in millions) Available-for-sale short-term investments $ 105.1 $ 105.1 $ $ Unrealized gains on natural gas derivatives 1.5 1.5 Asset retirement obligation escrow account 36.5 36.5 Investments in auction rate securities 136.6 136.6 Nonqualified employee benefit trust 7.7 7.7 Total assets at fair value $ 287.4 $ 149.3 $ 1.5 $ 136.6 Unrealized losses on natural gas derivatives $ 3.2 $ $ 3.2 $ Total liabilities at fair value $ 3.2 $ $ 3.2 $ Following is a summary of the valuation techniques for assets and liabilities recorded in our consolidated balance sheet at their fair value on a recurring basis: Short-term InvestmentsAs of June30, 2009, our short-term investments consisted of U.S. Treasury Bills with original maturities between three and nine months. These investments are accounted for as available-for-sale securities. The fair value of our short-term investments is based upon the daily quoted market prices for each of our investments. See Note10Cash and Cash Equivalents, Short-term Investments and Investments in Auction Rate Securities for additional information. Natural Gas DerivativesThe derivative instruments that we currently use are natural gas swap contracts. These contracts settle using NYMEX futures (for Donaldsonville) or AECO (for Medicine Hat) price indexes, which represent fair value at any given time. The contracts are traded in months forward and settlements are scheduled to coincide with anticipated gas purchases during those future periods. Quoted market prices from NYMEX and AECO are used to determine the fair value of these instruments. See Note16Derivative Financial Instruments for additional information. Asset Retirement Obligation Escrow AccountWe utilize an escrow account to meet our financial assurance requirements associated with certain asset retirement obligations in Florida. The investments in this escrow account are accounted for as available-for-sale securities. The fair value of the escrow account is based upon daily quoted prices representing the Net Asset Value(NAV) of the investments. See Note14Asset Retirement Obligations for addit |
Net Earnings Per Share
Net Earnings Per Share | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Net Earnings Per Share | 6.Net Earnings Per Share We adopted FSP EITF03-6-1Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities effective January1, 2009 with retrospective adjustment to previously reported earning per share (EPS) data for comparative purposes. This FSP applies to the calculation of EPS under SFAS No.128Earnings Per Share for share based payment awards with rights to dividends or dividend equivalents. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of EPS pursuant to the two-class method. The adoption of this FSP did not have a material impact on our consolidated financial statements. Net earnings per share were computed as follows: Three months ended June30, Six months ended June30, 2009 2008 2009 2008 (in millions, except per share amounts) Net earnings attributable to common stockholders $ 213.0 $ 288.6 $ 275.7 $ 447.4 Basic earnings per common share: Weighted average common shares outstanding 48.4 56.4 48.4 56.4 Net earnings attributable to common stockholders $ 4.40 $ 5.11 $ 5.69 $ 7.94 Diluted earnings per common share: Weighted average common shares outstanding 48.4 56.4 48.4 56.4 Dilutive common shares: Stock options 0.8 1.2 0.8 1.1 Diluted weighted average shares outstanding 49.2 57.6 49.2 57.5 Net earnings attributable to common stockholders $ 4.33 $ 5.01 $ 5.61 $ 7.78 For the three and six months ended June30, 2009, the computation of diluted earnings per share excludes approximately 0.1million and 0.2million, respectively, potentially dilutive stock options because the effect of their inclusion would be antidilutive in accordance with SFASNo.128. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Pension and Other Postretirement Benefits | 7.Pension and Other Postretirement Benefits CFIndustries,Inc. and its Canadian subsidiary both maintain noncontributory, defined-benefit pension plans. The U.S.pension plan is a closed plan. We also provide group insurance to our retirees. Until age65, retirees are eligible to continue to receive the same Company-subsidized medical coverage provided to active employees. When a retiree reaches age65, medical coverage ceases. Net periodic benefit cost included the following components: Three months ended June30, Six months ended June30, 2009 2008 2009 2008 (in millions) Pension Plans Service cost for benefits earned during the period $ 1.6 $ 1.7 $ 3.1 $ 3.3 Interest cost on projected benefit obligation 4.0 3.6 8.0 7.2 Expected return on plan assets (4.2 ) (4.1 ) (8.0 ) (8.1 ) Amortization of actuarial loss 0.3 0.2 0.7 0.3 Net periodic benefit cost $ 1.7 $ 1.4 $ 3.8 $ 2.7 Retiree Medical Service cost for benefits earned during the period $ 0.5 $ 0.4 $ 0.9 $ 1.4 Interest cost on projected benefit obligation 0.6 0.5 1.2 1.0 Amortization of transition obligation 0.1 0.1 0.2 0.2 Amortization of actuarial loss 0.1 0.2 0.1 0.2 Net periodic benefit cost $ 1.3 $ 1.2 $ 2.4 $ 2.8 Our 2009 consolidated pension funding contributions are estimated to be approximately $20million, of which approximately $16million was funded in the first six months of2009. In addition to our qualified defined benefit pension plans, we also maintain nonqualified supplemental pension plans for highly compensated employees as defined under federal law. The expense recognized for these plans for the three and six months ended June30, 2009 and 2008 was insignificant. |
Other Operating - Net
Other Operating - Net | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Other Operating - Net | 8.Other OperatingNet Details of other operating costs are as follows: Three months ended June30, Six months ended June30, 2009 2008 2009 2008 (in millions) Bartow costs $ 0.9 $ 1.1 $ 1.9 $ 2.3 Fixed asset disposals (0.9 ) (1.7 ) 0.8 (1.7 ) Business combination costs 8.1 24.2 Peru project development costs 6.3 10.2 Other 0.9 0.3 1.4 0.5 $ 15.3 $ (0.3 ) $ 38.5 $ 1.1 For the three and six months ended June30, 2009, business combination costs are associated with our proposed business combination with Terra IndustriesInc. and with evaluating and responding to AgriumInc.'s proposed acquisition of CFIndustries Holdings,Inc. |
Income Taxes
Income Taxes | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Income Taxes | 9.Income Taxes The income tax provisions recorded for the six months ended June30, 2009 and 2008 were determined in accordance with the requirements of APB Opinion No.28Interim Financial Reporting, FIN No.18Accounting for Income Taxes in Interim Periods, SFAS No.109Accounting for Income Taxes, and FIN No.48Accounting for Uncertainty in IncomeTaxes. In connection with our initial public offering (IPO) in August 2005, CFIndustries,Inc. (CFI) ceased to be a non-exempt cooperative for income tax purposes, and we entered into a net operating loss agreement (NOLAgreement) with CFI's pre-IPO owners relating to the future utilization of the pre-IPO net operating loss carryforwards (NOLs). Under the NOL Agreement, if it is finally determined that the NOLs can be utilized to offset applicable post-IPO taxable income, we will pay the pre-IPO owners amounts equal to the resulting federal and state income taxes actually saved. In the first quarter of 2009, we took tax return positions utilizing a portion of the NOLs. As the result of these return positions, our unrecognized tax benefits increased from $74.6million at December31, 2008 to $88.7million at June30, 2009. See Note12Income Taxes, to our audited consolidated financial statements included in our Current Report on Form8-K filed with the SEC on May28, 2009 for additional information concerning these unrecognized tax benefits. |
Cash and Cash Equivalents, Shor
Cash and Cash Equivalents, Short-Term Investments and Investments in Auction Rate Securities | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Cash and Cash Equivalents, Short-Term Investments and Investments in Auction Rate Securities | 10.Cash and Cash Equivalents, Short-Term Investments and Investments in Auction Rate Securities Our cash and cash equivalents, short-term investments and investments in auction rate securities consist of the following: June30, 2009 December31, 2008 (in millions) Cash $ 33.5 $ 49.4 Cash equivalents: Federal government obligations 776.8 562.6 Other debt securities 5.8 13.0 Total cash and cash equivalents $ 816.1 $ 625.0 Short-term investments: Federal government obligations $ 105.1 $ Noncurrent investments in auction rate securities: Tax-exempt auction rate securities $ 136.6 $ 177.8 Under our short-term investment policy, we can invest our cash balances in several types of securities, including notes and bonds issued by governmental entities or corporations, and money market funds. Securities issued by governmental entities include those issued directly by the Federal government; those issued by state, local or other governmental entities; and those guaranteed by entities affiliated with governmental entities. Cash and Cash Equivalents At June30, 2009 and December31, 2008, we had cash and cash equivalents of $816.1million and $625.0million, respectively, consisting primarily of U.S. Treasury Bills and money market mutual funds that invest in U.S. government obligations. Short-term Investments As of June30, 2009, our short-term investments of $105.1million consisted of available-for-sale U.S. Treasury Bills with original maturities between three and nine months. Our short-term investments are recorded at fair value, which approximates our costbasis. Investments in Auction Rate Securities Auction rate securities are primarily debt instruments with long-term maturities for which interest rates are expected to be reset periodically through an auction process, which typically occurs every 7 to 35days. The auction process results in the interest rate being reset on the underlying securities until the next reset or auction date. A failed auction occurs when there are insufficient bids for the number of instruments being offered. Upon a failed auction, the then present holders of the instruments continue to hold them and each instrument carries an interest rate based upon certain predefined formulas. In the first quarter of 2008, the market for these securities began to show signs of illiquidity as auctions for several securities failed on their scheduled auction dates. Shortly thereafter, liquidity left the market, causing the traditional auction process to fail. As a result, it was determined that these investments were no longer liquid and we would not be able to access these funds until such time as an auction of these investments is successful, a buyer is found outside of the auction process, and/or the securities are redeemed by theissuer. During the first half of 2009, $52.4million of our auction rate securities were either redeemed by the issuer or sold at par value. Therefore, as of June30, 2009, our remaining investments in available-for-sale ta |
Inventories
Inventories | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Inventories | 11.Inventories Inventories consist of the following: June30, 2009 December31, 2008 (in millions) Fertilizer $ 171.1 $ 526.2 Raw materials, spare parts and supplies 42.8 62.4 $ 213.9 $ 588.6 At June30, 2009, fertilizer inventories are net of a $25.0million valuation allowance, as the carrying cost of our potash inventories exceeded net realizable values. At December31, 2008, fertilizer inventories were net of a $57.0million valuation allowance related to our phosphate and potash inventories. |
Property, Plant and Equipment -
Property, Plant and Equipment - Net | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Property, Plant and Equipment - Net | 12.Property, Plant and EquipmentNet Property, plant and equipmentnet consist of the following: June30, 2009 December31, 2008 (in millions) Land $ 36.4 $ 31.8 Mineral properties 193.0 193.0 Manufacturing plants and equipment 2,061.3 1,987.4 Distribution facilities and other 225.0 220.8 Construction in progress 116.2 74.9 2,631.9 2,507.9 Less: Accumulated depreciation, depletion and amortization 1,893.4 1,846.0 $ 738.5 $ 661.9 Plant turnaroundsScheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facilities are referred to as plant turnarounds. We account for plant turnarounds under the deferral method, as opposed to the direct expense or built-in overhaul methods, as outlined in FASB Staff Position No.AUG AIR-1Accounting for Planned Major Maintenance Activities. Under the deferral method, expenditures related to turnarounds are capitalized into property, plant and equipment when incurred and are included in the table above in the line entitled, "Manufacturing plants and equipment." If we had used the direct expense method, turnaround costs would be expensed as incurred. Turnaround costs are classified as investing activities in the consolidated statements of cash flows and reported in the line entitled, "Additions to property, plant and equipment." The following is a summary of plant turnaround activity for the six months ended June30, 2009 and2008: Six months ended June30, 2009 2008 (in millions) Net capitalized turnaround costs at beginning of the period $ 40.6 $ 47.7 Additions 22.0 12.9 Depreciation (12.8 ) (10.9 ) Effect of exchange rate changes 0.4 (0.4 ) Net capitalized turnaround costs at end of the period $ 50.2 $ 49.3 Scheduled replacements and overhauls of plant machinery and equipment include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors, heat exchangers and the replacement of catalyst when a full plant shutdown occurs. Scheduled inspections are also conducted during full plant shutdowns, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications. Capitalized turnaround costs have been applied consistently in the periods presented. Internal employee costs and overhead are not considered turnaround costs and are not capitalized. |
Investments in and Advances to
Investments in and Advances to Unconsolidated Affiliates | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Investments in and Advances to Unconsolidated Affiliates | 13.Investments in and Advances to Unconsolidated Affiliates We own 50% of the common shares of KEYTRADE AG (Keytrade), a global fertilizer trading company headquartered near Zurich, Switzerland. We also own certain non-voting preferred shares of Keytrade and have provided additional subordinated financing. Keytrade is a reseller of fertilizer products that it purchases from various manufacturers around the world and resells in approximately 50 countries through a network of seven offices. Keytrade is our exclusive exporter of phosphate fertilizer products from North America and our exclusive importer of UAN products into North America. We account for our investment in Keytrade under the equity method. Our investment in and advances to Keytrade consist of the following: June30, 2009 December31, 2008 (in millions) Equity investment in Keytrade $ 31.0 $ 32.4 Advances to Keytrade 12.4 12.4 $ 43.4 $ 44.8 For the three months ended June30, 2009 and 2008, we recognized in our consolidated statements of operations equity in earnings (loss) of Keytrade of ($0.7) million and $7.2million, respectively, and for the six months ended June30, 2009 and 2008 of ($1.4) million and $8.9million, respectively. At June30, 2009, the amount of our consolidated retained earnings that represents our undistributed earnings of Keytrade is $4.5million. The advances to Keytrade are subordinated notes that mature on September30, 2017 and bear interest at LIBOR plus 1.00percent. For the six months ended June30, 2009 and 2008, we recognized interest income on advances to Keytrade of $0.2million and $0.3million, respectively. The carrying value of our advances to Keytrade approximates fair value. |
Asset Retirement Obligations
Asset Retirement Obligations | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Asset Retirement Obligations | 14.Asset Retirement Obligations Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development or normal operation of such assets. We account for AROs in accordance with SFAS No.143Accounting for Asset Retirement Obligations, and FIN No.47Accounting for Conditional Asset Retirement Obligations (conditional AROs). Our AROs are primarily associated with phosphogypsum stack systems and mine reclamation in Florida. The changes in our AROs from December31, 2008 to June30, 2009 are summarized below: (in millions) Obligation at December31, 2008 $ 100.7 Accretion expense 3.8 Liabilities incurred 0.8 Expenditures (3.6 ) Changes in estimate 0.1 Obligation at June30, 2009 $ 101.8 Our phosphate operations in Florida are subject to regulations governing the construction, operation, closure and long-term maintenance of phosphogypsum stack systems and site reclamation for phosphate rock mines. Our liability for phosphogypsum stack costs includes the cost of stack closure at Plant City and the costs of cooling pond closure, post-closure monitoring, and ongoing water treatment at both Bartow and Plant City. The actual amounts to be spent will depend on factors such as the timing of activities, refinements in scope, technological developments, cost inflation and changes in regulations. It is possible that these factors could change at any time and impact the estimates. Additional asset retirement obligations may be incurred in the future upon expansion of the Plant City phosphogypsum stack. AROs are reported in accrued expenses and other noncurrent liabilities on our consolidated balance sheet, as follows: June30, 2009 December31, 2008 (in millions) Current portion $ 10.6 $ 11.2 Noncurrent portion 91.2 89.5 $ 101.8 $ 100.7 Florida regulations require phosphate fertilizer companies to demonstrate financial assurance for the closure of phosphogypsum stack systems, for mine reclamation activities, and for wetland and other surface water mitigation measures. In the first quarter of 2009 and 2008, we made annual contributions of $7.5million and $6.2million, respectively, to an escrow account established for the benefit of the Florida Department of Environmental Protection in order to comply with Florida's regulations governing financial assurance related to the closure and maintenance of phosphogypsum stack systems. Over the next seven years, we expect to contribute between $3million and $7million annually based upon the required funding formula as defined in the regulations and an assumed rate of return of 2% on invested funds. Our estimate of the amount that will have accumulated in the account by the year 2016, including interest earned on invested funds, is approximately $77million. After 2016, contributions to the fund are estimated to average approximately $5million annually for the following 17years. The balance in the account is estimated to reach approximately $210million by 2033. The requ |
Credit Agreement and Notes Paya
Credit Agreement and Notes Payable | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Credit Agreement and Notes Payable | 15.Credit Agreement and Notes Payable Credit Agreement Our senior secured revolving credit facility (the credit facility) with a bank syndicate led by JPMorgan Chase provides CFIndustries,Inc. with up to $250million, subject to a borrowing base, for working capital and general corporate purposes, including up to $50million for the issuance of letters ofcredit. The credit facility is guaranteed by CFHoldings and certain domestic subsidiaries of CFIndustries,Inc. (the Loan Parties). The credit facility is secured by substantially all of the personal property and assets, both tangible and intangible, of the Loan Parties, 100% of the equity interests of each Loan Party's direct and indirect domestic subsidiaries other than immaterial subsidiaries, 65% of the equity interests of each Loan Party's first-tier foreign subsidiaries and the real property located in Donaldsonville, Louisiana. For additional information on the credit facility, refer to Note23Credit Agreement, to our audited consolidated financial statements included in our Current Report on Form8-K filed with the SEC on May28, 2009. As of June30, 2009, there was $205.7million of available credit and no borrowings outstanding under the credit facility. Notes Payable From time to time, CFL receives advances from us and from CFL's noncontrolling interest holder to finance major capital expenditures. The advances outstanding are evidenced by unsecured promissory notes due December31, 2009 and bear interest at market rates. The amount shown as notes payable represents the advances payable to CFL's noncontrolling interest holder. The carrying value of notes payable approximates fair value. These notes are classified in current liabilities on the consolidated balance sheet as of June30, 2009. |
Derivative Financial Instrument
Derivative Financial Instruments | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Derivative Financial Instruments | 16.Derivative Financial Instruments We use natural gas in the manufacture of nitrogen fertilizer products. We manage the risk of changes in gas prices through the use of physical gas supply contracts and derivative financial instruments covering periods not exceeding three years. We use natural gas derivative instruments primarily to lock in a substantial portion of our margin on sales under the Forward Pricing Program. Our natural gas acquisition policy also allows us to establish derivative positions that are associated with anticipated natural gas requirements, unrelated to our Forward Pricing Program. The derivative instruments that we currently use are natural gas swap contracts. These contracts settle using NYMEX futures (for Donaldsonville) or AECO (for Medicine Hat) price indexes, which represent fair value at any given time. The contracts are entered into with respect to gas to be consumed in the future and settlements are scheduled to coincide with anticipated gas purchases used to manufacture nitrogen products during those future periods. We account for derivatives under SFAS No.133Accounting for Derivative Instruments and Hedging Activities, as amended by subsequent standards. Under these standards, derivatives are recognized in the consolidated balance sheet at fair value and changes in their fair value are recognized immediately in earnings, unless the normal purchase and sale exemption applies. We use natural gas derivatives primarily as an economic hedge of gas price risk, but without the application of hedge accounting under SFAS No.133. Accordingly, changes in the fair value of the derivatives are recorded in cost of sales as the changes occur. Cash flows related to natural gas derivatives are reported as operating activities. The effect of derivatives in our consolidated statements of operations is shown below. All amounts arise from natural gas derivatives that are not designated as hedging instruments and are recorded in cost of sales. Three months ended June30, Six months ended June30, 2009 2008 2009 2008 (in millions) Realized gains (losses) $ (36.4 ) $ 53.9 $ (108.1 ) $ 48.9 Unrealized mark-to-market gains 34.3 83.2 82.9 152.8 Net derivative gains (losses) $ (2.1 ) $ 137.1 $ (25.2 ) $ 201.7 The fair values of derivatives on our consolidated balance sheets are shown below. All amounts arise from natural gas derivatives that are not designated as hedging instruments. For additional information on derivative fair values, see Note5Fair Value Measurements. June30, 2009 December31, 2008 (in millions) Unrealized gains in other current assets $ 1.5 $ 0.7 Unrealized losses in other current liabilities (3.2 ) (85.3 ) Net unrealized derivative gains (losses) $ (1.7 ) $ (84.6 ) As of June30, 2009 and December31, 2008, we had open derivative contracts for 10.7million MMBtus and 16.7million MMBtus, respectively, of natural gas. For the six months ended June30, 2009, we used derivatives to cover approximately 38% of |
Stock-Based Compensation
Stock-Based Compensation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Stock-Based Compensation | 17.Stock-Based Compensation 2009 Equity and Incentive Plan On April21, 2009, our shareholders approved the CFIndustries Holdings,Inc. 2009 Equity and Incentive Plan (Plan) which replaced the CFIndustries Holdings,Inc. 2005 Equity and Incentive Plan (2005 Plan). Under the Plan, we may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards (payable in cash or stock), and other stock-based awards to our officers, employees, consultants and independent contractors (including non-employee directors). The purpose of the Plan is to provide an incentive for our employees, officers, consultants and non-employee directors that is aligned with the interests of our stockholders. Share Reserve and Individual Award Limits The maximum number of shares reserved for the grant of awards under the Plan shall be the sum of (i)3.9million and (ii)the number of shares subject to outstanding awards under the 2005 Plan to the extent such awards terminate or expire without delivery of shares. For purposes of determining the number of shares of stock available for grant under the Plan, each option or stock appreciation right is counted against the reserve as one share. Each share of stock granted, other than an option or a stock appreciation right, is counted against the reserve as 1.61 shares. If any outstanding award expires for any reason or is settled in cash, any unissued shares subject to the award will again be available for issuance under the Plan. Shares tendered in payment of the exercise price of an option and shares withheld by the Company or otherwise received by the Company to satisfy tax withholding obligations are not available for future grant under the Plan. At June30, 2009, we had 3.9million shares available for future awards under the Plan. The Plan provides that no more than 1.0million underlying shares may be granted to a participant in any one calendaryear. Awards Awards granted under the Plan are accounted for in accordance with SFAS No.123RShare-Based Payment, which requires the measurement and recognition of compensation expense for all share-based payment awards based on grant date fair values. We estimate the fair value of each stock option award using the Black-Scholes option valuation model. The fair value of a restricted stock award is equal to the closing market price of our common stock on the date ofgrant. At June30, 2009, we had 1.7million stock options outstanding with an aggregate intrinsic value of $87.4million. At December31, 2008, we had 1.8million stock options outstanding with an aggregate intrinsic value of $49.1million. During the three months ended June30, 2009, we granted 3,800 stock options and 1,400 shares of restricted stock to employees and 6,776 shares of restricted stock to non-management members of our Board of Directors under the Plan. The weighted-average grant-date fair value per share for stock options and restricted stock awards granted during the three months ended June30, 2009 was $49.10 and $69.35, respectively. There were no stock options or shares of restricted stock granted during the thre |
Other Comprehensive Income
Other Comprehensive Income (Loss) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Other Comprehensive Income (Loss) | 18.Other Comprehensive Income (Loss) Changes to accumulated other comprehensive loss and the impact on other comprehensive income (loss) are as follows: Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Securities Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) (in millions) Balance at December31, 2008 $ (4.4 ) $ (14.0 ) $ (56.8 ) $ (75.2 ) Unrealized holding gain on securities 11.4 11.4 Reclassification to earnings (0.2 ) 1.3 1.1 Deferred taxes and other changes 1.3 (4.3 ) (0.4 ) (3.4 ) Balance at June30, 2009 $ (3.1 ) $ (7.1 ) $ (55.9 ) $ (66.1 ) Balance at December31, 2007 $ 1.0 $ 0.5 $ (22.7 ) $ (21.2 ) Unrealized holding loss on securities (12.1 ) (12.1 ) Reclassification to earnings 0.5 1.0 1.5 Deferred taxes and other changes (0.7 ) 4.4 (0.2 ) 3.5 Balance at June30, 2008 $ 0.3 $ (6.7 ) $ (21.9 ) $ (28.3 ) The pre-tax unrealized holding gain on securities of $11.4million during the six months ended June30, 2009 and the pre-tax unrealized holding loss on securities of $12.1million during the six months ended June30, 2008 relates primarily to our investments in auction rate securities. For additional information on our investments in auction rate securities, see Note5Fair Value Measurements and Note10Cash and Cash Equivalents, Short-term Investments and Investments in Auction Rate Securities. |
Contingencies
Contingencies | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Contingencies | 19.Contingencies Litigation From time to time, we are subject to ordinary, routine legal proceedings related to the usual conduct of our business, including proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of our various plants and facilities. Based on the information available as of the date of this filing, we believe that the ultimate outcome of these matters will not have a material adverse effect on our consolidated financial position or results of operations. Environmental Plant City Environmental Matters In December 2004 and January 2005, the United States Environmental Protection Agency (EPA) inspected our Plant City, Florida phosphate fertilizer complex to evaluate the facility's compliance with the Resource Conservation and Recovery Act (RCRA), the federal statute that governs the generation, transportation, treatment, storage and disposal of hazardous wastes. This inspection was undertaken as a part of a broad enforcement initiative commenced by the EPA to evaluate whether mineral processing and mining facilities, including, in particular, all wet process phosphoric acid production facilities, are in compliance with RCRA, and the extent to which such facilities' waste management practices have impacted the environment. By letter dated September27, 2005, EPA Region 4 issued to the Company a Notice of Violation (NOV) and Compliance Evaluation Inspection Report. The NOV and Compliance Evaluation Inspection Report alleged a number of violations of RCRA, including violations relating to recordkeeping, the failure to properly make hazardous waste determinations as required by RCRA, and alleged treatment of sulfuric acid waste without a permit. The most significant allegation in the NOV is that the Plant City facility's reuse of phosphoric acid process water (which is otherwise exempt from regulation as a hazardous waste) in the production of ammoniated phosphate fertilizer, and the return of this process water to the facility's process water recirculating system, have resulted in the disposal of hazardous waste into the system without a permit. The Compliance Evaluation Inspection Report indicates that, as a result, the entire process water system, including all pipes, ditches, cooling ponds and gypsum stacks, could be regulated as hazardous waste management units underRCRA. Several of our competitors have received NOVs making this same allegation. This particular recycling of process water is common in the industry and, the Company believes, was authorized by the EPA in 1990. The Company also believes that this allegation is inconsistent with recent case law governing the scope of the EPA's regulatory authority under RCRA. Nonetheless, the Company has conducted a successful pilot test to replace process water as a scrubbing medium at the ammonium phosphate fertilizer plants and maintain compliance with Plant City's air permit. The Company has received a permit from the Florida Department of Environmental Protection that authorizes the Company to make this change for the three ammonium phosphate plants that utilize process water. Al |
Segment Disclosures
Segment Disclosures | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Segment Disclosures | 20.Segment Disclosures We are organized and managed based primarily on two segments, which are differentiated primarily by their products, the markets they serve and the regulatory environments in which they operate. The two segments are the nitrogen segment and the phosphate segment. The Company's management uses gross margin to evaluate segment performance and allocate resources. Selling, general and administrative expenses; other operating and non-operating expenses; interest; as well as income tax expense, are managed centrally and are not included in the measurement of segment profitability reviewed by management. Segment data for sales, cost of sales and gross margin for the three and six months ended June30, 2009 and 2008 follows. Nitrogen Phosphate Consolidated (in millions) Three months ended June30, 2009 Net sales Ammonia $ 335.0 $ $ 335.0 Urea 211.0 211.0 UAN 205.5 205.5 DAP 142.7 142.7 MAP 34.3 34.3 Potash 59.0 59.0 Other 3.5 3.5 755.0 236.0 991.0 Cost of sales 351.8 212.2 564.0 Gross margin $ 403.2 $ 23.8 $ 427.0 Three months ended June30, 2008 Net sales Ammonia $ 272.3 $ $ 272.3 Urea 335.2 335.2 UAN 237.2 237.2 DAP 263.9 263.9 MAP 48.5 48.5 Other 3.9 3.9 848.6 312.4 1,161.0 Cost of sales 486.6 204.5 691.1 Gross margin $ 362.0 $ 107.9 $ 469.9 Nitrogen Phosphate Consolidated (in millions) Six months ended June30, 2009 Net sales Ammonia $ 405.3 $ $ 405.3 Urea 478.5 478.5 UAN 323.7 323.7 DAP 328.4 328.4 MAP 72.5 72.5 Potash 59.5 59.5 Other 3.7 3.7 1,211.2 460.4 1,671.6 Cost of sales 638.6 443.7 1,082.3 Gross margin $ 572.6 $ 16.7 $ 589.3 Six months ended June30, 2008 Net sales Ammonia $ 304.4 $ $ 304.4 Urea 586.8 586.8 UAN 391.0 391.0 DAP 453.2 453.2 MAP 88.7 88.7 Other 4.2 4.2 1,286.4 541.9 1,828.3 Cost of sales 726.9 360.3 1,087.2 Gross margin $ 559.5 $ 181.6 $ 741.1 Assets at June30, 2009 and December31, 2008, are presented below. Nitrogen Phosphate Other Consolidated (in millions) Assets June30, 2009 $ 604.6 $ 587.2 $ 1,087.6 $ 2,279.4 December31, 2008 $ 758.2 $ 764.1 $ 865.3 $ 2,387.6 The Other category of |
Document and Entity Information
Document and Entity Information (USD $) | ||
6 Months Ended
Jun. 30, 2009 | Jun. 30, 2008
| |
Document and Entity Information | ||
Entity Registrant Name | CF Industires Holdings, Inc. | |
Entity Central Index Key | 0001324404 | |
Document Type | 10-Q | |
Document Period End Date | 2009-06-30 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $8,592,410,193 | |
Entity Common Stock, Shares Outstanding | 48,456,310 |