Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | CF Industries Holdings, Inc. | |
Entity Central Index Key | 1,324,404 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 233,093,602 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | ||
Income Statement [Abstract] | |||
Net sales | $ 1,004 | $ 954 | |
Cost of sales | 787 | 538 | |
Gross margin | 217 | 416 | |
Selling, general and administrative expenses | 45 | 40 | |
Transaction costs | 14 | 0 | |
Other operating—net | 61 | 18 | |
Total other operating costs and expenses | 120 | 58 | |
Equity in earnings of operating affiliates | 0 | 9 | |
Operating earnings | 97 | 367 | |
Interest expense | 38 | 34 | |
Interest income | (1) | (1) | |
Other non-operating—net | (2) | 0 | |
Earnings before income taxes and equity in earnings of non-operating affiliates | 62 | 334 | |
Income tax provision | 15 | 113 | |
Equity in earnings of non-operating affiliates—net of taxes | 0 | 15 | |
Net earnings | 47 | 236 | |
Less: Net earnings attributable to noncontrolling interests | 21 | 5 | |
Net earnings attributable to common stockholders | $ 26 | $ 231 | |
Net earnings per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ / shares | $ 0.11 | $ 0.96 | [1] |
Diluted (in dollars per share) | $ / shares | $ 0.11 | $ 0.96 | [1] |
Weighted average common shares outstanding: | |||
Basic (in shares) | shares | 233.2 | 239.7 | [1] |
Diluted (in shares) | shares | 233.5 | 240.6 | [1] |
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.30 | $ 0.30 | [1] |
[1] | Share and per share amounts have been retroactively restated for the prior period to reflect the five-for-one split of the Company’s common stock effected in the form of a stock dividend that was distributed on June 17, 2015. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 47 | $ 236 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment—net of taxes | 48 | (86) |
Defined benefit plans—net of taxes | 0 | 6 |
Total other comprehensive income (loss) | 48 | (80) |
Comprehensive income | 95 | 156 |
Less: Comprehensive income attributable to noncontrolling interests | 21 | 5 |
Comprehensive income attributable to common stockholders | $ 74 | $ 151 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 2,689 | $ 286 | $ 1,779 | $ 1,997 |
Restricted cash | 12 | 23 | ||
Accounts receivable—net | 262 | 267 | ||
Inventories | 304 | 321 | ||
Prepaid income taxes | 207 | 185 | ||
Other current assets | 46 | 45 | ||
Total current assets | 3,520 | 1,127 | ||
Property, plant and equipment—net | 9,052 | 8,539 | ||
Investments in affiliates | 298 | 298 | ||
Goodwill | 2,384 | 2,390 | ||
Other assets | 327 | 329 | ||
Total assets | 15,581 | 12,683 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses | 880 | 918 | ||
Income taxes payable | 4 | 5 | ||
Customer advances | 227 | 162 | ||
Other current liabilities | 162 | 130 | ||
Total current liabilities | 1,273 | 1,215 | ||
Long-term debt | 5,539 | 5,537 | ||
Deferred income taxes | 955 | 916 | ||
Other liabilities | 620 | 628 | ||
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, 2016—235,490,941 shares issued and 2015—235,493,395 shares issued | 2 | 2 | ||
Paid-in capital | 1,381 | 1,378 | ||
Retained earnings | 3,014 | 3,058 | ||
Treasury stock—at cost, 2016—2,411,839 shares and 2015—2,411,839 shares | (153) | (153) | ||
Accumulated other comprehensive loss | (202) | (250) | (240) | (160) |
Total stockholders' equity | 4,042 | 4,035 | ||
Noncontrolling interests | 3,152 | 352 | 357 | 363 |
Total equity | 7,194 | 4,387 | $ 4,419 | $ 4,572 |
Total liabilities and equity | $ 15,581 | $ 12,683 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 235,490,941 | 235,493,395 |
Treasury stock, shares | 2,411,839 | 2,411,839 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Treasury Stock(1) | Paid-In Capital(1) | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | Noncontrolling Interests | |||
Balance at Dec. 31, 2014 | $ 4,572 | $ 2 | [1] | $ (222) | [1] | $ 1,414 | [1] | $ 3,175 | $ (160) | $ 4,209 | $ 363 |
Increase (decrease) in equity | |||||||||||
Net earnings | 236 | 231 | 231 | 5 | |||||||
Other comprehensive income: | |||||||||||
Foreign currency translation adjustment—net of taxes | (86) | (86) | (86) | ||||||||
Defined benefit plans—net of taxes | 6 | 6 | 6 | ||||||||
Comprehensive income | 156 | 151 | 5 | ||||||||
Purchases of treasury stock | (237) | (237) | (237) | ||||||||
Issuance of $0.01 par value common stock under employee stock plans | 6 | 0 | 6 | 0 | 6 | ||||||
Stock-based compensation expense | 4 | 4 | 4 | ||||||||
Excess tax benefit from stock-based compensation | 1 | 1 | 1 | ||||||||
Cash dividends ($0.30 and $0.30 per share) for the three months ended March 31, 2016 and 2015 respectively | (72) | (72) | (72) | ||||||||
Distributions declared to noncontrolling interest | (11) | (11) | |||||||||
Balance at Mar. 31, 2015 | 4,419 | 2 | [1] | (459) | [1] | 1,425 | [1] | 3,334 | (240) | 4,062 | 357 |
Balance at Dec. 31, 2015 | 4,387 | 2 | (153) | 1,378 | 3,058 | (250) | 4,035 | 352 | |||
Increase (decrease) in equity | |||||||||||
Net earnings | 47 | 26 | 26 | 21 | |||||||
Other comprehensive income: | |||||||||||
Foreign currency translation adjustment—net of taxes | 48 | 48 | 48 | 0 | |||||||
Defined benefit plans—net of taxes | 0 | ||||||||||
Comprehensive income | 95 | 74 | 21 | ||||||||
Stock-based compensation expense | 3 | 3 | 3 | ||||||||
Cash dividends ($0.30 and $0.30 per share) for the three months ended March 31, 2016 and 2015 respectively | (70) | (70) | (70) | ||||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | 2,792 | 2,792 | |||||||||
Distributions declared to noncontrolling interest | (13) | (13) | |||||||||
Balance at Mar. 31, 2016 | $ 7,194 | $ 2 | $ (153) | $ 1,381 | $ 3,014 | $ (202) | $ 4,042 | $ 3,152 | |||
[1] | Amounts have been retroactively restated for the prior period to reflect the five-for-one split of the Company’s common stock effected in the form of a stock dividend that was distributed on June 17, 2015. |
CONSOLIDATED STATEMENTS OF EQU7
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Cash Dividends (dollars per share) | $ 0.3 | $ 0.30 | [1] |
[1] | Amounts have been retroactively restated for the prior period to reflect the five-for-one split of the Company’s common stock effected in the form of a stock dividend that was distributed on June 17, 2015. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities: | ||
Net earnings | $ 47 | $ 236 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 146 | 115 |
Deferred Income Taxes and Tax Credits | 36 | 0 |
Stock-based compensation expense | 4 | 4 |
Excess tax benefit from stock-based compensation | 0 | (1) |
Unrealized loss (gain) on derivatives | 18 | (11) |
Loss on disposal of property, plant and equipment | 3 | 6 |
Undistributed earnings of affiliates—net of taxes | (4) | (18) |
Changes in: | ||
Accounts receivable—net | 4 | 24 |
Inventories | 16 | (68) |
Accrued and prepaid income taxes | (23) | 84 |
Accounts payable and accrued expenses | (6) | (11) |
Customer advances | 65 | 170 |
Other—net | 40 | 1 |
Net cash provided by operating activities | 346 | 531 |
Investing Activities: | ||
Additions to property, plant and equipment | (676) | (445) |
Proceeds from sale of property, plant and equipment | 2 | 3 |
Withdrawals from restricted cash funds | 11 | 23 |
Other—net | 1 | (11) |
Net cash used in investing activities | (662) | (430) |
Financing Activities: | ||
Proceeds from short-term borrowings | 150 | 0 |
Payments of short-term borrowings | (150) | 0 |
Financing fees | 0 | (2) |
Dividends paid on common stock | (70) | (72) |
Issuance of noncontrolling interest in CFN | 2,800 | 0 |
Distributions to noncontrolling interest | (13) | (11) |
Purchases of treasury stock | 0 | (236) |
Issuances of common stock under employee stock plans | 0 | 6 |
Excess tax benefit from stock-based compensation | 0 | 1 |
Net cash provided by (used in) financing activities | 2,717 | (314) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (5) |
Increase (decrease) in cash and cash equivalents | 2,403 | (218) |
Cash and cash equivalents at beginning of period | 286 | 1,997 |
Cash and cash equivalents at end of period | $ 2,689 | $ 1,779 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation We are one of the largest manufacturers and distributors of nitrogen fertilizer and other nitrogen products in the world. Our principal customers are cooperatives, independent fertilizer distributors, farmers and industrial users. Our principal nitrogen fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Our other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to our industrial customers, and compound fertilizer products (NPKs), which are solid granular fertilizer products for which the nutrient content is a combination of nitrogen, phosphorus, and potassium. Our manufacturing and distribution facilities are concentrated in the midwestern United States and other major agricultural areas of the United States, Canada and the United Kingdom. We also export nitrogen fertilizer products from our Donaldsonville, Louisiana; Yazoo City, Mississippi; and Billingham, United Kingdom manufacturing facilities. All references to "the Company," "we," "us" and "our" refer to CF Industries Holdings, Inc. and its subsidiaries. All references to "CF Holdings" refer to CF Industries Holdings, Inc. itself and not its subsidiaries. All references to "CF Industries" refer to CF Industries, Inc., a 100% owned subsidiary of CF Industries Holdings, Inc. The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2015 , in accordance with U.S. generally accepted accounting principles (GAAP) 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. The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP 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. The accompanying unaudited interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and related disclosures included in our 2015 Annual Report on Form 10-K filed with the SEC on February 25, 2016. The preparation of the unaudited interim consolidated financial statements requires us to make use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the unaudited consolidated financial statements and the reported revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, net realizable value of inventories, environmental remediation liabilities, environmental and litigation contingencies, the cost of customer incentives, useful lives of property and identifiable intangible assets, the assumptions used in the evaluation of potential impairments of property, investments, identifiable intangible assets and goodwill, income tax and valuation reserves, allowances for doubtful accounts receivable, the measurement of the fair values of investments for which markets are not active, assumptions used in the determination of the funded status and annual expense of pension and postretirement employee benefit plans and the assumptions used in the valuation of stock-based compensation awards granted to employees. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Adopted Pronouncement In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The ASU requires retrospective application and represents a change in accounting principle. In August 2015, the FASB issued the related ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which clarifies ASU No. 2015-03 and states that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We adopted ASU No. 2015-03 and ASU No. 2015-15 retrospectively in the first quarter of 2016, which resulted in the reclassification of deferred debt issuance costs of $56 million from other assets to an offset of long-term debt on our consolidated balance sheet as of December 31, 2015. Deferred debt issuance costs related to our senior unsecured revolving credit agreement continue to be reflected in other assets. See Note 12—Financing Agreements for additional information. Recently Issued Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU makes a number of changes meant to simplify and improve accounting for share-based payments including amendments to share-based accounting for income taxes, the related classification in the statement of cash flows and share award forfeiture accounting. ASU No. 2016-09 is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those reporting periods. Early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the lease accounting requirements in Accounting Standards Codification (ASC) Topic 840, Leases. This ASU will require lessees to recognize the rights and obligations resulting from virtually all leases (other than leases that meet the definition of a short-term lease) on their balance sheets as right-of-use assets with corresponding lease liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted, and requires the modified retrospective method of adoption. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, effective for annual and interim periods beginning after December 15, 2016. ASU No. 2015-11 changes the inventory measurement principle for entities using the first-in, first out (FIFO) or average cost methods. For entities utilizing one of these methods, the inventory measurement principle will change from lower of cost or market to the lower of cost and net realizable value. We follow the FIFO or average cost methods and are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments. Additionally, information concerning the costs to obtain and fulfill a contract, including assets to be recognized, is to be capitalized and disclosed. In 2016, the FASB issued additional ASUs that enhance the operability of the principal versus agent guidance in ASU No. 2014-09 by clarifying that an entity should consider the nature of each good or service promised to a customer at the individual good or service level, clarify that ASU No. 2014-09 should not be applied to immaterial performance obligations, and enhance the guidance around the treatment of shipping costs incurred to fulfill performance obligations. As modified by ASU No. 2015-14, Deferral of the Effective Date, the effective date of ASU No. 2014-09 is for interim and annual periods beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact of the adoption of ASU No. 2014-09, as amended, on our consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions CF Fertilisers UK Acquisition On July 31, 2015, we acquired the remaining 50% equity interest in CF Fertilisers UK Group Limited (formerly known as GrowHow UK Group Limited) (CF Fertilisers UK) not previously owned by us for total consideration of $570 million , and CF Fertilisers UK became wholly owned by us. The purchase price was funded with cash on hand. Prior to July 31, 2015, our initial 50% equity interest in CF Fertilisers UK was accounted for as an equity method investment, and the financial results of this investment were included in our consolidated statements of operations in equity in earnings of non-operating affiliates—net of taxes. The following table summarizes the preliminary allocation of the total fair value of CF Fertilisers UK to the assets acquired and liabilities assumed in its acquisition on July 31, 2015. The estimated fair value of the assets acquired and liabilities assumed is based on the estimated net realizable value for inventory, a replacement cost approach for property, plant and equipment and the income approach for intangible assets. Final determination of the fair values may result in further adjustments to the amounts presented below. Original Valuation Net Adjustments to Fair Value in 2015 Adjusted Valuation as of December 31, 2015 (in millions) Fair value of consideration transferred $ 570 $ — $ 570 Fair value of 50% of equity interest already held by the Company 570 — 570 Total fair value $ 1,140 $ — $ 1,140 Assets acquired and liabilities assumed Current assets $ 165 $ 1 $ 166 Property, plant and equipment 898 — 898 Goodwill 328 (8 ) 320 Other assets 140 (1 ) 139 Total assets acquired 1,531 (8 ) 1,523 Current liabilities 74 1 75 Deferred tax liabilities—noncurrent 129 (9 ) 120 Other liabilities 188 — 188 Total liabilities assumed 391 (8 ) 383 Total net assets acquired $ 1,140 $ — $ 1,140 During the first quarter of 2016, there were no adjustments made to the fair value of the assets acquired and liabilities assumed related to the CF Fertilisers UK acquisition. Current assets acquired included cash of $19 million , accounts receivable of $73 million and inventory of $67 million . The acquired property, plant and equipment will be depreciated over a period consistent with our existing fixed assets depreciation policy. The acquisition resulted in the recognition of $320 million of goodwill, which is not deductible for income tax purposes. Other assets acquired included intangible assets of $132 million . See Note 7—Goodwill and Other Intangible Assets for additional information. Agreement to Combine with Certain of OCI N.V.’s Businesses On August 6, 2015, we announced that we entered into a definitive agreement (as amended, the Combination Agreement), under which we will combine with the European, North American and global distribution businesses of OCI N.V. (OCI). OCI is a global producer and distributor of natural gas-based fertilizers and industrial chemicals based in the Netherlands. The combination transaction includes OCI’s nitrogen production facility in Geleen, Netherlands; its nitrogen production facility under construction in Wever, Iowa; its approximately 79.88% equity interest in an ammonia and methanol complex in Beaumont, Texas; and its global distribution business and the assumption of approximately $2 billion in net debt. The Combination Agreement also includes the purchase by CF Holdings or its designee of a 45% interest plus an option to acquire the remaining interest in OCI’s Natgasoline greenfield methanol project in Texas. In March 2016, CF Holdings consented to OCI’s entering into a binding agreement to sell a 50% interest in the Natgasoline project to a third party, and OCI agreed that CF Holdings has no further obligation to purchase an investment in the project under the Combination Agreement. The OCI businesses that are included in the combination transaction, excluding the Natgasoline project, are referred to in this report as the ENA Business. Under the terms of the Combination Agreement, CF Holdings will become a subsidiary of a new holding company (New CF) domiciled in the Netherlands. OCI will contribute the entities holding the ENA Business to New CF in exchange for ordinary shares of New CF (base share consideration), plus additional consideration of $700 million (subject to adjustment) to be paid in cash, ordinary shares of New CF or a mixture of cash and ordinary shares of New CF, as determined by CF Holdings in accordance with the terms of the Combination Agreement. The base share consideration will represent 25.6% of the ordinary shares of New CF that, upon consummation of the combination, subject to downward adjustment to account for the assumption by New CF, as contemplated by the Combination Agreement, of any of OCI’s 3.875% convertible bonds due 2018 that remain outstanding as of the closing date of the combination. The actual ownership split of New CF upon completion of the combination as between former CF Holdings shareholders, on the one hand, and OCI and its shareholders, on the other hand, will be dependent on our share price at the time of closing, the amount of convertible bonds to be assumed by New CF at closing, the amount of adjustments to the amount of the additional consideration, and the mix of cash and New CF ordinary shares used to pay the additional consideration. The transaction is subject to the approval of shareholders of both CF Holdings and OCI, the receipt of certain regulatory approvals and other closing conditions. In conjunction with entering into the Combination Agreement, on August 6, 2015, CF Holdings obtained financing commitments from Morgan Stanley Senior Funding, Inc. and Goldman Sachs Bank USA to finance the transactions contemplated by the Combination Agreement and for general corporate purposes. The proceeds of such committed financing are available under a senior unsecured bridge term loan facility in an aggregate principal amount of up to $3.0 billion , subject to the terms and conditions set forth therein. See Note 12—Financing Agreements —Bridge Credit Agreement for additional information. |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net Earnings Per Share Net earnings per share were computed as follows: Three months ended 2016 2015 (in millions, except per share amounts) Net earnings attributable to common stockholders $ 26 $ 231 Basic earnings per common share (1) : Weighted-average common shares outstanding 233.2 239.7 Net earnings attributable to common stockholders $ 0.11 $ 0.96 Diluted earnings per common share (1) : Weighted-average common shares outstanding 233.2 239.7 Dilutive common shares—stock options 0.3 0.9 Diluted weighted-average shares outstanding 233.5 240.6 Net earnings attributable to common stockholders $ 0.11 $ 0.96 _______________________________________________________________________________ (1) Share and per share amounts have been retroactively restated for the prior period to reflect the five -for-one split of the Company’s common stock effected in the form of a stock dividend that was distributed on June 17, 2015. In the computation of diluted earnings per common share, potentially dilutive stock options are excluded if the effect of their inclusion is anti-dilutive. Shares for anti-dilutive stock options not included in the computation of diluted earnings per common share were 4.2 million and 0.8 million for the three months ended March 31, 2016 and 2015 , respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: March 31, December 31, (in millions) Finished goods $ 269 $ 286 Raw materials, spare parts and supplies 35 35 Total inventories $ 304 $ 321 |
Property, Plant and Equipment-N
Property, Plant and Equipment-Net | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment-Net | Property, Plant and Equipment—Net Property, plant and equipment—net consists of the following: March 31, December 31, (in millions) Land $ 68 $ 68 Machinery and equipment 7,757 7,348 Buildings and improvements 335 271 Construction in progress (1) 3,831 3,626 Property, plant and equipment 11,991 11,313 Less: Accumulated depreciation and amortization 2,939 2,774 Property, plant and equipment—net $ 9,052 $ 8,539 _______________________________________________________________________________ (1) As of March 31, 2016 and December 31, 2015 , we had construction in progress that was accrued but unpaid of $515 million and $543 million , respectively. These amounts included accruals related to our capacity expansion projects of $463 million and $471 million as of March 31, 2016 and December 31, 2015 , respectively. Depreciation and amortization related to property, plant and equipment was $140 million and $103 million for the three months ended March 31, 2016 and 2015 , respectively. Plant turnarounds —Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facilities during a full plant shutdown are referred to as plant turnarounds. The expenditures related to turnarounds are capitalized in property, plant and equipment when incurred. The following is a summary of plant turnaround activity: Three months ended 2016 2015 (in millions) Net capitalized turnaround costs: Beginning balance $ 220 $ 153 Additions 10 27 Depreciation (22 ) (14 ) Effect of exchange rate changes 3 (2 ) Ending balance $ 211 $ 164 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 catalysts 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. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table shows the carrying amount of goodwill by reportable segment as of March 31, 2016 and December 31, 2015 : Ammonia Granular Urea UAN AN Other Total (in millions) Balance as of December 31, 2015 $ 587 $ 828 $ 576 $ 324 $ 75 $ 2,390 Effect of exchange rate changes 1 1 — (7 ) (1 ) (6 ) Balance as of March 31, 2016 $ 588 $ 829 $ 576 $ 317 $ 74 $ 2,384 All of our identifiable intangible assets have definite lives and are presented in other assets on our consolidated balance sheets at gross carrying amount, net of accumulated amortization, as follows: March 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (in millions) Intangible assets: Customer relationships $ 137 $ (20 ) $ 117 $ 140 $ (18 ) $ 122 TerraCair brand 10 (10 ) — 10 (10 ) — Trade names 34 (1 ) 33 35 (1 ) 34 Total intangible assets $ 181 $ (31 ) $ 150 $ 185 $ (29 ) $ 156 Included in the table above are intangible assets of $132 million identified in connection with the July 31, 2015 acquisition of the remaining 50% equity interest in CF Fertilisers UK not previously owned by us. See Note 3—Acquisitions for additional information. CF Fertilisers UK's intangible assets are being amortized over a weighted-average life of approximately 20 years. Amortization expense of our identifiable intangible assets was $2 million and $6 million for the three months ended March 31, 2016 and 2015 , respectively. In early 2015, management approved a plan to discontinue the usage of TerraCair brand in the sale of DEF. Based on the change in the usage of this brand, the related intangible assets were fully amortized during the first quarter of 2015. Total estimated amortization expense for the remainder of 2016 and each of the five succeeding fiscal years is as follows: Estimated Amortization Expense (in millions) Remainder of 2016 $ 7 2017 9 2018 9 2019 9 2020 9 2021 9 |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments Operating Equity Method Investment As of March 31, 2016 and December 31, 2015 , we have a 50% ownership interest in Point Lisas Nitrogen Limited (PLNL), which operates an ammonia production facility in the Republic of Trinidad and Tobago. We include our share of the net earnings from this equity method investment as an element of earnings from operations because PLNL provides additional production to our operations and is integrated with our other supply chain and sales activities in the ammonia segment. The total carrying value of our equity method investment in PLNL as of March 31, 2016 was $214 million more than our share of PLNL's book value. The excess is primarily attributable to the purchase accounting impact of our acquisition of the investment in PLNL and primarily reflects the revaluation of property, plant and equipment, the value of an exclusive natural gas contract and goodwill. The increased basis for property, plant and equipment and the gas contract are being amortized over a remaining period of approximately 18 years and 3 years , respectively. Our equity in earnings of PLNL is different from our ownership interest in income reported by PLNL due to amortization of these basis differences. We have transactions in the normal course of business with PLNL reflecting our obligation to purchase 50% of the ammonia produced by PLNL at current market prices. Our ammonia purchases from PLNL totaled $16 million and $30 million for the three months ended March 31, 2016 and 2015 , respectively. In the fourth quarter of 2015, we determined the carrying value of our investment in PLNL exceeded fair value and recognized an impairment charge of $62 million . See Note 9—Fair Value Measurements for additional information. Non-Operating Equity Method Investments As of March 31, 2016 and December 31, 2015, we no longer have non-operating equity method investments as a result of the sale of our 50% ownership interest in KEYTRADE AG during the second quarter of 2015 and our July 31, 2015 acquisition of the remaining 50% equity interest in CF Fertilisers UK not previously owned by us. See Note 3—Acquisitions for additional information. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Our cash and cash equivalents and other investments consist of the following: March 31, 2016 Cost Basis Unrealized Gains Unrealized Losses Fair Value (in millions) Cash $ 136 $ — $ — $ 136 Cash equivalents: U.S. and Canadian government obligations 2,533 — — 2,533 Other debt securities 20 — — 20 Total cash and cash equivalents $ 2,689 $ — $ — $ 2,689 Restricted cash 12 — — 12 Nonqualified employee benefit trusts 18 1 — 19 December 31, 2015 Cost Basis Unrealized Gains Unrealized Losses Fair Value (in millions) Cash $ 71 $ — $ — $ 71 Cash equivalents: U.S. and Canadian government obligations 190 — — 190 Other debt securities 25 — — 25 Total cash and cash equivalents $ 286 $ — $ — $ 286 Restricted cash 23 — — 23 Nonqualified employee benefit trusts 18 1 — 19 Under our short-term investment policy, we may invest our cash balances, either directly or through mutual funds, in several types of investment-grade securities, including notes and bonds issued by governmental entities or corporations. 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. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present assets and liabilities included in our consolidated balance sheets as of March 31, 2016 and December 31, 2015 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value: March 31, 2016 Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash equivalents $ 2,553 $ 2,553 $ — $ — Restricted cash 12 12 — — Derivative assets 3 — 3 — Nonqualified employee benefit trusts 19 19 — — Derivative liabilities (232 ) — (232 ) — December 31, 2015 Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash equivalents $ 215 $ 215 $ — $ — Restricted cash 23 23 — — Nonqualified employee benefit trusts 19 19 — — Derivative liabilities (211 ) — (211 ) — Cash Equivalents As of March 31, 2016 and December 31, 2015 , our cash equivalents consisted primarily of U.S. and Canadian government obligations and money market mutual funds that invest in U.S. government obligations and other investment-grade securities. Restricted Cash We maintain a cash account for which the use of the funds is restricted. The restricted cash as of March 31, 2016 and December 31, 2015 was put in place to satisfy certain requirements included in our engineering and procurement services contract for our capacity expansion projects. Under the terms of this contract, we are required to grant an affiliate of ThyssenKrupp Industrial Solutions a security interest in a restricted cash account and maintain a cash balance in that account equal to the cancellation fees for procurement services and equipment that would arise if we were to cancel the projects. Derivative Instruments The derivative instruments that we use are primarily natural gas fixed price swaps, natural gas options and foreign currency forward contracts traded in the over-the-counter (OTC) markets with multi-national commercial banks, other major financial institutions and large energy companies. The natural gas derivative contracts represent anticipated natural gas needs for future periods and settlements are scheduled to coincide with anticipated gas purchases during those future periods. The foreign currency derivative contracts held are for the exchange of a specified notional amount of currencies at specified future dates coinciding with anticipated foreign currency cash outflows associated with our Donaldsonville, Louisiana and Port Neal, Iowa capacity expansion projects. The natural gas derivative contracts settle using primarily NYMEX futures prices. To determine the fair value of these instruments, we use quoted market prices from NYMEX and standard pricing models with inputs derived from or corroborated by observable market data such as forward curves supplied by an industry-recognized independent third party. The currency derivatives are valued based on quoted market prices supplied by an industry-recognized independent third party. See Note 13—Derivative Financial Instruments for additional information. Nonqualified Employee Benefit Trusts We maintain trusts associated with certain nonqualified supplemental pension plans. The investments are accounted for as available-for-sale securities. The fair values of the trust assets are based on daily quoted prices in an active market, which represents the net asset values of the shares held in the trusts. These trusts are included on our consolidated balance sheets in other assets. Financial Instruments The carrying amounts and estimated fair values of our financial instruments are as follows: March 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Long-term debt $ 5,539 $ 5,614 $ 5,537 $ 5,456 The fair value of our long-term debt was based on either quoted prices for identical or similar liabilities in markets that are not active or valuation models in which all significant inputs and value drivers are observable and, as a result, are classified as Level 2 inputs. The carrying amounts of cash and cash equivalents, as well as instruments included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair values because of their short-term maturities. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We also have assets and liabilities that may be measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment, allocation of purchase price in an acquisition or when a new liability is being established that requires fair value measurement. These include long-lived assets, goodwill and other intangible assets and investments in unconsolidated subsidiaries which may be written down to fair value as a result of impairment. We determined that the fair value measurements related to each of these rely primarily on Company-specific inputs and the Company's assumptions about the use of the assets. Since certain of the Company’s assumptions involve inputs that are not observable, these assumptions reside within Level 3 of the fair value hierarchy. Our equity method investment in the Republic of Trinidad and Tobago, PLNL, operates an ammonia plant that relies on natural gas supplied by The National Gas Company of Trinidad and Tobago Limited (NGC). See Note 8—Equity Method Investments for additional information. The joint venture continues to generate positive income and cash flow; however, it experienced natural gas curtailments in 2014 and 2015, which have continued into 2016, due to major maintenance activities being conducted at upstream natural gas facilities and decreased gas exploration and development activity in the Republic of Trinidad and Tobago. Natural gas is the principal raw material used to produce nitrogen fertilizers; therefore, a decrease in availability of natural gas would lead to lower revenues and cash flows. In our fourth quarter 2015 impairment analysis, our assumptions included that these curtailments were expected to continue into the future. We previously assumed that future development and exploration activities within Trinidad would reduce the natural gas curtailments. However, commitments from NGC regarding the level of future availability and the related cost are not available. The future availability and cost of natural gas represents a significant assumption which is included in the projection of future revenue and expenses of the business used in the discounted cash flow model utilized to estimate fair value for our impairment analysis. In the fourth quarter of 2015, recognizing that natural gas curtailments are expected to continue into the future, we determined the carrying value of our investment in PLNL exceeded fair value and recognized an impairment charge of $62 million . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax provision for the three months ended March 31, 2016 was $15 million on pre-tax income of $62 million , or an effective tax rate of 24.7% . For the three months ended March 31, 2015 , our income tax provision was $113 million on pre-tax income of $334 million , or an effective tax rate of 33.8% . Our effective tax rate for the three months ended March 31, 2016 is impacted by the increase in earnings attributable to noncontrolling interests as our tax provision does not include a tax provision on these earnings. The decrease in our effective tax rate is partially offset by the impact of certain transactional expenses that are not deductible for tax purposes and a reduction in the tax benefits from the U.S. manufacturing profits deduction. Our effective tax rate based on pre-tax earnings differs from our effective tax rate based on pre-tax earnings exclusive of noncontrolling interests, as our consolidated income tax provision does not include a tax provision on the earnings attributable to the noncontrolling interests in CF Industries Nitrogen, LLC (CFN) and Terra Nitrogen Company, L.P. (TNCLP), which do not record an income tax provision. See Note 14—Noncontrolling Interests for additional information. |
Interest Expense
Interest Expense | 3 Months Ended |
Mar. 31, 2016 | |
Interest Expense [Abstract] | |
Interest Expense | Interest Expense Details of interest expense are as follows: Three months ended 2016 2015 (in millions) Interest on borrowings (1) $ 76 $ 63 Fees on financing agreements (1) 4 1 Interest on tax liabilities 1 1 Interest capitalized (43 ) (31 ) Total interest expense $ 38 $ 34 _______________________________________________________________________________ (1) See Note 12—Financing Agreements for additional information. |
Financing Agreements
Financing Agreements | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Financing Agreements | Financing Agreements Long-term debt presented on our consolidated balance sheets as of March 31, 2016 and December 31, 2015 consisted of the following unsecured senior notes: Effective Interest Rate March 31, December 31, Principal Outstanding Carrying Amount (1) Principal Outstanding Carrying Amount (1)(2) (in millions) Public Senior Notes: 6.875% due 2018 7.344% $ 800 $ 793 $ 800 $ 792 7.125% due 2020 7.529% 800 789 800 788 3.450% due 2023 3.562% 750 745 750 745 5.150% due 2034 5.279% 750 739 750 739 4.950% due 2043 5.031% 750 741 750 741 5.375% due 2044 5.465% 750 740 750 740 Private Senior Notes: 4.490% due 2022 4.626% 250 248 250 248 4.930% due 2025 5.034% 500 496 500 496 5.030% due 2027 5.121% 250 248 250 248 Total long-term debt $ 5,600 $ 5,539 $ 5,600 $ 5,537 _______________________________________________________________________________ (1) Carrying amount is net of unamortized debt discount of $7 million at both March 31, 2016 and December 31, 2015 , and deferred debt issuance costs of $54 million and $56 million as of March 31, 2016 and December 31, 2015 , respectively. (2) In connection with our adoption of ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (See Note 2—New Accounting Standards for additional information), December 31, 2015 carrying amounts have been retrospectively adjusted to include a direct deduction of deferred debt issuance costs of $56 million . Prior to the adoption, these costs were included in other assets on our consolidated balance sheets. Public Senior Notes Under the indentures (including the applicable supplemental indentures) governing the senior notes due 2018, 2020, 2023, 2034, 2043 and 2044 identified in the table above (the Public Senior Notes), each series of Public Senior Notes is guaranteed by CF Holdings. Interest on the Public Senior Notes is paid semiannually, and the Public Senior Notes are redeemable at our option, in whole at any time or in part from time to time, at specified make-whole redemption prices. The indentures governing the Public Senior Notes contain customary events of default and covenants that limit, among other things, the ability of CF Holdings and its subsidiaries, including CF Industries, to incur liens on certain properties to secure debt. If a Change of Control occurs together with a Ratings Downgrade (as both terms are defined under the indentures governing the Public Senior Notes), CF Industries would be required to offer to repurchase each series of Public Senior Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest. In addition, in the event that a subsidiary of CF Holdings, other than CF Industries, becomes a borrower or a guarantor under our senior unsecured revolving credit agreement (or any renewal, replacement or refinancing thereof), such subsidiary would be required to become a guarantor of the Public Senior Notes, provided that such requirement will no longer apply with respect to the Public Senior Notes due in 2023, 2034, 2043 and 2044 following the repayment of the Public Senior Notes due in 2018 and 2020 or the subsidiaries of ours, other than CF Industries, otherwise becoming no longer subject to such a requirement to guarantee the Public Senior Notes due in 2018 and 2020. Private Senior Notes The senior notes due 2022, 2025 and 2027 (the Private Senior Notes) are governed by the terms of a note purchase agreement (as amended, the Note Purchase Agreement) and are guaranteed by the Company. Interest on the Private Senior Notes is payable semiannually on April 15 and October 15. All obligations under the Note Purchase Agreement are unsecured. Under the terms of the Note Purchase Agreement, CF Industries may prepay at any time all, or from time to time any part of, any series of the Private Senior Notes, in an amount not less than 5% of the aggregate principal amount of such series of the Private Senior Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid plus a make-whole amount determined as specified in the Note Purchase Agreement. In the event of a Change in Control (as defined in the Note Purchase Agreement), each holder of the Private Senior Notes may require CF Industries to prepay the entire unpaid principal amount of the Private Senior Notes held by such holder at a price equal to 100% of the principal amount of such Private Senior Notes together with accrued and unpaid interest thereon, but without any make-whole amount or other premium. On and after the date of the closing of the transactions contemplated by the Combination Agreement (the Combination Agreement Closing Date), New CF would be required to guarantee the obligations under the Note Purchase Agreement. In addition, certain of CF Holdings' wholly owned U.S. subsidiaries, and, on and after the Combination Agreement Closing Date, certain of New CF’s and CF Holdings' wholly owned U.S. and foreign subsidiaries, will be required to become guarantors of the obligations under the Note Purchase Agreement if (i) such subsidiaries guarantee other debt for borrowed money (subject to specified exceptions) of CF Holdings, CF Industries or New CF in an aggregate principal amount in excess of $500 million or (ii) such subsidiaries are borrowers under, issuers of, or guarantors of specified debt obligations of CF Holdings, CF Industries or New CF. See Note 3—Acquisitions for additional information related to the Combination Agreement. The Note Purchase Agreement contains customary representations and warranties and covenants for a financing of this type, including two financial maintenance covenants: (i) a requirement that the interest coverage ratio (as defined in the Note Purchase Agreement) be maintained at a level of not less than 2.75 to 1.00 and (ii) a requirement that the total leverage ratio (as defined in the Note Purchase Agreement) be maintained at a level of not greater than 3.75 to 1.00. The Note Purchase Agreement contains events of default (with notice requirements and cure periods, as applicable) customary for a financing of this type, including, but not limited to, non-payment of principal, make-whole amounts, or interest; inaccuracy of representations and warranties in any material respect; and failure to comply with specified covenants. Upon the occurrence and during the continuance of an event of default under the Note Purchase Agreement and after any applicable cure period, subject to specified exceptions, the holder or holders of more than 50% in principal amount of the Private Senior Notes outstanding may declare all the Private Senior Notes then outstanding due and payable. Revolving Credit Agreement We have a senior unsecured revolving credit agreement (as amended, the Revolving Credit Agreement) providing for a revolving credit facility of up to $2.0 billion with a maturity of September 18, 2020. Borrowings under the Revolving Credit Agreement may be used for working capital and general corporate purposes. CF Industries is a borrower, and CF Industries and CF Holdings are guarantors, under the Revolving Credit Agreement. Following the satisfaction of specified conditions, including the occurrence of the Combination Agreement Closing Date (the Darwin Acquisition Conditions Satisfaction), New CF would become a party to the Revolving Credit Agreement as the Dutch borrower and CF Industries would cease to be a borrower under the Revolving Credit Agreement. CF Industries or, following the Darwin Acquisition Conditions Satisfaction, New CF, may designate as borrowers one or more wholly owned subsidiaries that are organized in the United States or any state thereof, the District of Columbia, England and Wales or the Netherlands. Borrowings under the Revolving Credit Agreement may be denominated in dollars, Canadian dollars, euro and sterling, and bear interest at a per annum rate equal to an applicable eurocurrency rate or base rate plus, in either case, a specified margin, and the borrowers are required to pay an undrawn commitment fee on the undrawn portion of the commitments under the Revolving Credit Agreement and customary letter of credit fees. The specified margin and the amount of the commitment fee depend on CF Holdings’ (or, after the Darwin Acquisition Conditions Satisfaction, New CF’s) credit rating at the time. Certain of CF Holdings’ wholly owned U.S. subsidiaries, and, on and after the Darwin Acquisition Conditions Satisfaction, certain of New CF’s and CF Holdings’ wholly owned U.S. and foreign subsidiaries, will be required to become guarantors of the obligations under the Revolving Credit Agreement if (i) such subsidiaries guarantee other debt for borrowed money (subject to specified exceptions) of CF Holdings, CF Industries or New CF in an aggregate principal amount in excess of $500 million or (ii) such subsidiaries are borrowers under, issuers of, or guarantors of specified debt obligations of CF Holdings, CF Industries or New CF, including debt under the Bridge Credit Agreement (as defined below). The Revolving Credit Agreement contains customary representations and warranties and covenants for a financing of this type, including two financial maintenance covenants: (i) a requirement that the interest coverage ratio, as defined in the Revolving Credit Agreement, be maintained at a level of not less than 2.75 to 1.00 and (ii) a requirement that the total leverage ratio, as defined in the Revolving Credit Agreement, be maintained at a level of not greater than 3.75 to 1.00. The Revolving Credit Agreement contains events of default (with notice requirements and cure periods, as applicable) customary for a financing of this type, including, but not limited to, non-payment of principal, interest or fees; inaccuracy of representations and warranties in any material respect; and failure to comply with specified covenants. Upon the occurrence and during the continuance of an event of default under the Revolving Credit Agreement and after any applicable cure period, subject to specified exceptions, the administrative agent may, and at the request of the requisite lenders is required to, accelerate the loans under the Revolving Credit Agreement or terminate the lenders’ commitments under the Revolving Credit Agreement. As of March 31, 2016 , we had excess borrowing capacity under the Revolving Credit Agreement of $1,995 million (net of outstanding letters of credit of $5 million ), and there were no borrowings outstanding as of March 31, 2016 or December 31, 2015 . Maximum borrowings during the three months ended March 31, 2016 were $150 million with a weighted-average annual interest rate of 1.85% . There were no borrowings during the three months ended March 31, 2015 . Bridge Credit Agreement On September 18, 2015, in connection with CF Holdings proposed combination with the ENA Business of OCI (see Note 3—Acquisitions for additional information), CF Holdings, as a guarantor, and CF Industries, as the tranche A borrower, entered into a senior unsecured 364 -Day Bridge Credit Agreement (as amended, the Bridge Credit Agreement). On the tranche B closing date, as defined in the Bridge Credit Agreement, New CF would become a party to the Bridge Credit Agreement as the tranche B borrower. The tranche B closing date would occur upon the satisfaction of specified conditions, including the occurrence of the closing under the Combination Agreement. The Bridge Credit Agreement (1) provided for a single borrowing of a tranche A bridge loan of up to $1.0 billion that would have been used by CF Industries first to reduce amounts outstanding, if any, under the Revolving Credit Agreement and then for general corporate purposes; and (2) provides for a single borrowing of a tranche B bridge loan of up to $3.0 billion that may be used by New CF to pay the cash portion, if any, of the purchase price for specified equity interests to be acquired pursuant to the Combination Agreement; to consummate the refinancing of specified debt in connection with the transactions contemplated by the Combination Agreement; to pay fees and expenses in connection with the transactions contemplated by the Bridge Credit Agreement and the Combination Agreement; and in an amount of up to $1.3 billion for general corporate purposes. The obligations of the lenders to fund the tranche A bridge loan under the Bridge Credit Agreement automatically terminated on September 24, 2015 in connection with the issuance of the Private Senior Notes. The obligations of the lenders to fund the tranche B bridge loan under the Bridge Credit Agreement are subject to customary limited conditionality and expire on August 6, 2016 (or no later than November 6, 2016, if extended pursuant to the terms thereof), or earlier as provided in the Bridge Credit Agreement. The tranche B bridge loan would mature on the date that is 364 days after the initial funding of such loan. The Bridge Credit Agreement is voluntarily prepayable from time to time without premium or penalty and is mandatorily prepayable with, and the commitments thereunder will automatically be reduced by, the net cash proceeds from specified issuances of equity interests of CF Holdings and its subsidiaries and, on and after the Combination Agreement Closing Date, New CF and its subsidiaries, specified issuances or incurrences of debt by such persons and the net cash proceeds (including casualty insurance proceeds and condemnation awards) from specified dispositions of assets of such persons, with specified exceptions, including a right to reinvest such proceeds or awards in assets used or useful in the business of such persons and their subsidiaries. Commitments under the Bridge Credit Agreement will also be reduced by the amount of commitments under certain designated term loan facilities and by the amount of any specified debt as to which, on or prior to the tranche B closing date, arrangements have been made to permit such debt to remain outstanding in accordance with its terms or permanent repayment or termination has been effected by OCI and its affiliates. Borrowings under the Bridge Credit Agreement will be denominated in dollars and bear interest at a per annum rate equal to an applicable LIBOR rate or base rate plus, in either case, a specified margin that depends on CF Holdings’ (or, after the consummation of the transactions contemplated by the Combination Agreement on the Combination Agreement Closing Date, New CF’s) credit rating at the time and that will increase by a specified amount every 90 days commencing with the 90th day after the date of the initial funding of the tranche B bridge loan through the date that is 270 days after the date of such initial funding. CF Industries is required to pay an undrawn commitment fee equal to 0.15% of the undrawn portion of the commitments under the Bridge Credit Agreement. CF Industries and New CF will also be required to pay duration fees ranging from 0.50% to 1.00% at specified intervals following the funding of the tranche B bridge loan. Currently, CF Holdings and CF Industries are the only guarantors of the obligations under the Bridge Credit Agreement. Certain of CF Holdings’ wholly owned U.S. subsidiaries, and, on and after the Combination Agreement Closing Date, certain of New CF’s and CF Holdings’ wholly owned U.S. and foreign subsidiaries, will be required to become guarantors of the obligations under the Bridge Credit Agreement if (i) such subsidiaries guarantee other debt for borrowed money (subject to specified exceptions) of CF Holdings, CF Industries or New CF in an aggregate principal amount in excess of $500 million or (ii) such subsidiaries are borrowers under, issuers of, or guarantors of specified debt obligations of CF Holdings, CF Industries or New CF, including debt under the Revolving Credit Agreement. The representations, warranties, events of default and covenants contained in the Bridge Credit Agreement are substantially similar to those contained in the Revolving Credit Agreement. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments to reduce our exposure to changes in commodity prices and foreign currency exchange rates. Commodity Price Risk Management Natural gas is the largest and most volatile component of the manufacturing cost for nitrogen-based products. We manage the risk of changes in natural gas prices primarily through the use of derivative financial instruments covering periods through the end of 2018. The derivatives that we use are primarily fixed price swaps and options traded in the OTC markets. These natural gas derivatives settle using primarily a NYMEX futures price index, which represents the basis for fair value at any given time. We entered into natural gas derivative contracts with respect to natural gas to be consumed by us in the future, and settlements of those derivative contracts are scheduled to coincide with our anticipated purchases of natural gas used to manufacture nitrogen products during those future periods. We use natural gas derivatives as an economic hedge of natural gas price risk, but without the application of hedge accounting. As a result, changes in fair value of these contracts are recognized in earnings. As of March 31, 2016 and December 31, 2015 , we had open natural gas derivative contracts for 370.7 million MMBtus (millions of British thermal units) and 431.5 million MMBtus, respectively. For the three months ended March 31, 2016 , we used derivatives to cover approximately 85% of our natural gas consumption. Foreign Currency Exchange Rates In the fourth quarter of 2012, our Board of Directors authorized a project to construct new ammonia and urea/UAN plants at our Donaldsonville, Louisiana complex and new ammonia and urea plants at our Port Neal, Iowa complex. A portion of the capacity expansion project costs are euro-denominated. In order to manage our exposure to changes in the euro to U.S. dollar currency exchange rates, we have hedged our projected euro-denominated payments through the third quarter of 2016 using foreign currency forward contracts. As of March 31, 2016 and December 31, 2015 , the notional amount of our open foreign currency derivatives was €66 million and €89 million , respectively. None of these open foreign currency derivatives were designated as hedging instruments for accounting purposes. As of March 31, 2016 accumulated other comprehensive income includes $7 million of pre-tax gains related to foreign currency derivatives that were originally designated as cash flow hedges. The hedges were de-designated as of December 31, 2013. The remaining balance in accumulated other comprehensive income is being reclassified into income over the depreciable lives of the property, plant and equipment associated with the capacity expansion projects. The amount recognized during the three months ended March 31, 2016 was insignificant. We expect that the amounts to be reclassified within the next twelve months will be insignificant. The effect of derivatives in our consolidated statements of operations is shown in the table below. Unrealized gain (loss) recognized in income Three months ended Location 2016 2015 (in millions) Natural gas derivatives Cost of sales $ (21 ) $ 28 Foreign exchange contracts Other operating—net 3 (12 ) Unrealized (losses) gains recognized in income $ (18 ) $ 16 Gain (loss) in income Three months ended All Derivatives 2016 2015 (in millions) Unrealized (losses) gains $ (18 ) $ 16 Realized losses (56 ) (43 ) Net derivative losses $ (74 ) $ (27 ) The fair values of derivatives on our consolidated balance sheets are shown below. As of March 31, 2016 and December 31, 2015 , none of our derivative instruments were designated as hedging instruments. For additional information on derivative fair values, see Note 9—Fair Value Measurements . Asset Derivatives Liability Derivatives Balance Sheet Location March 31, December 31, Balance Sheet Location March 31, December 31, (in millions) (in millions) Foreign exchange contracts Other current assets $ 3 $ — Other current liabilities $ — $ — Foreign exchange contracts Other assets — — Other liabilities — — Natural gas derivatives Other current assets — — Other current liabilities (162 ) (130 ) Natural gas derivatives Other assets — — Other liabilities (70 ) (81 ) Total derivatives $ 3 $ — $ (232 ) $ (211 ) Current / Noncurrent totals Other current assets $ 3 $ — Other current liabilities $ (162 ) $ (130 ) Other assets — — Other liabilities (70 ) (81 ) Total derivatives $ 3 $ — $ (232 ) $ (211 ) As of March 31, 2016 and December 31, 2015 , the aggregate fair value of the derivative instruments with credit-risk-related contingent features in a net liability position was $232 million and $211 million , respectively, which also approximates the fair value of the maximum amount of additional collateral that would need to be posted or assets needed to settle the obligations if the credit-risk-related contingent features were triggered at the reporting dates. At both March 31, 2016 and December 31, 2015 , we had no cash collateral on deposit with counterparties for derivative contracts. The credit support documents executed in connection with certain of our International Swaps and Derivatives Association (ISDA) agreements generally provide us and our counterparties the right to set off collateral against amounts owing under the ISDA agreements upon the occurrence of a default or a specified termination event. The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of March 31, 2016 and December 31, 2015 : Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial instruments Cash collateral received (pledged) Net amount (in millions) March 31, 2016 Total derivative assets $ 3 $ 3 $ — $ — Total derivative liabilities 232 3 — 229 Net derivative liabilities $ (229 ) $ — $ — $ (229 ) December 31, 2015 Total derivative assets $ — $ — $ — $ — Total derivative liabilities 211 — — 211 Net derivative liabilities $ (211 ) $ — $ — $ (211 ) _______________________________________________________________________________ (1) We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, the gross amounts recognized and net amounts presented are the same. We do not believe the contractually allowed netting, close-out netting or setoff of amounts owed to, or due from, the counterparties to our ISDA agreements would have a material effect on our financial position. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests CF Industries Nitrogen, LLC (CFN) Our strategic venture with CHS Inc. (CHS) commenced on February 1, 2016, at which time CHS purchased a minority equity interest in CFN, a subsidiary of CF Holdings, for $2.8 billion . CHS also began receiving deliveries pursuant to a supply agreement under which CHS has the right to purchase annually from us up to approximately 1.1 million tons of granular urea and 580,000 tons of UAN at market prices. CHS is entitled to semi-annual distributions from CFN as a result of its minority equity interest in CFN based generally on the volume of granular urea and UAN purchased by CHS pursuant to the supply agreement. Additionally, under the terms of the strategic venture, if our credit rating is reduced below certain levels by two of three specified credit ratings agencies, we are required to make a non-refundable yearly payment to CHS. The payment would continue on a yearly basis until the earlier of the date that our credit rating is upgraded or February 1, 2026. On February 1, 2016, we recognized this term of the strategic venture as an embedded derivative and recorded a liability of $8 million , which is included in other liabilities on our consolidated balance sheet. Terra Nitrogen Company L.P. (TNCLP) TNCLP is a master limited partnership (MLP) that owns a nitrogen manufacturing facility in Verdigris, Oklahoma. We own an aggregate 75.3% of TNCLP through general and limited partnership interests. Outside investors own the remaining 24.7% of the limited partnership. For financial reporting purposes, the assets, liabilities and earnings of the partnership are consolidated into our financial statements. The outside investors' limited partnership interests in the partnership are recorded in noncontrolling interest in our consolidated financial statements. The noncontrolling interest represents the noncontrolling unitholders' interest in the earnings and equity of TNCLP. Affiliates of CF Industries are required to purchase all of TNCLP's fertilizer products at market prices as defined in the Amendment to the General and Administrative Services and Product Offtake Agreement, dated September 28, 2010. TNCLP makes cash distributions to the general and limited partners based on formulas defined within its Agreement of Limited Partnership. Cash available for distribution is defined in the agreement generally as all cash receipts less all cash disbursements, less certain reserves (including reserves for future operating and capital needs) established as the general partner determines in its reasonable discretion to be necessary or appropriate. Changes in working capital affect available cash, as increases in the amount of cash invested in working capital items (such as increases in inventory and decreases in accounts payable) reduce available cash, while declines in the amount of cash invested in working capital items increase available cash. Cash distributions to the limited partners and general partner vary depending on the extent to which the cumulative distributions exceed certain target threshold levels set forth in the Agreement of Limited Partnership. In each of the applicable quarters of 2016 and 2015 , the minimum quarterly distributions were satisfied, which entitled us, as the general partner, to receive increased distributions on our general partner interests as provided for in the Agreement of Limited Partnership. The earnings attributed to our general partner interest in excess of the threshold levels for the three months ended March 31, 2016 and 2015 , were $10 million and $20 million , respectively. As of March 31, 2016 , Terra Nitrogen GP Inc. (TNGP), the general partner of TNCLP (and an indirect wholly owned subsidiary of CF Industries), and its affiliates owned 75.3% of TNCLP's outstanding units. When not more than 25% of TNCLP's issued and outstanding units are held by non-affiliates of TNGP, TNCLP, at TNGP's sole discretion, may call, or assign to TNGP or its affiliates, TNCLP's right to acquire all such outstanding units held by non-affiliated persons. If TNGP elects to acquire all outstanding units, TNCLP is required to give at least 30 but not more than 60 days' notice of TNCLP's decision to purchase the outstanding units. The purchase price per unit will be the greater of (1) the average of the previous 20 trading days' closing prices as of the date five days before the purchase is announced or (2) the highest price paid by TNGP or any of its affiliates for any unit within the 90 days preceding the date the purchase is announced. A reconciliation of the beginning and ending balances of noncontrolling interests and distributions payable to noncontrolling interests in our consolidated balance sheets is provided below. Three months ended 2016 2015 CFN TNCLP Total TNCLP (in millions) Noncontrolling interests: Beginning balance $ — $ 352 $ 352 $ 363 Issuance of noncontrolling interest in CFN 2,792 — 2,792 — Earnings attributable to noncontrolling interests 17 4 21 5 Declaration of distributions payable — (13 ) (13 ) (11 ) Ending balance $ 2,809 $ 343 $ 3,152 $ 357 Distributions payable to noncontrolling interests: Beginning balance $ — $ — $ — $ — Declaration of distributions payable — 13 13 11 Distributions to noncontrolling interest — (13 ) (13 ) (11 ) Ending balance $ — $ — $ — $ — Proposed Internal Revenue Service Regulation Impacting Master Limited Partnerships Currently, no federal income taxes are paid by TNCLP due to its MLP status. Partnerships are generally not subject to federal income tax, although publicly traded partnerships (such as TNCLP) are treated as corporations for federal income tax purposes (and therefore are subject to federal income tax), unless at least 90% of the partnership's gross income is "qualifying income" as defined in Section 7704 of the Internal Revenue Code of 1986, as amended, and the partnership is not required to register as an investment company under the Investment Company Act of 1940. Any change in the tax treatment of income from fertilizer-related activities as qualifying income could cause TNCLP to be treated as a corporation for federal income tax purposes. If TNCLP were taxed as a corporation, under current law, due to its current ownership interest, CF Industries would qualify for a partial dividends received deduction on the dividends received from TNCLP. Therefore, we would not expect a change in the tax treatment of TNCLP to have a material impact on the consolidated financial condition or results of operations of CF Holdings. On May 6, 2015, the Internal Revenue Service (IRS) published proposed regulations on the types of income and activities that constitute or generate qualifying income of an MLP. The proposed regulations would have the effect of limiting the types of income and activities that qualify under the MLP rules, subject to certain transition provisions. The proposed regulations include certain processing or refining and transportation activities with respect to any mineral or natural resource (including fertilizer) as activities that generate qualifying income, but the proposed regulations reserve on specific proposals regarding fertilizer-related activities. We continue to monitor these IRS regulatory activities. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Accumulated Other Comprehensive Income (Loss) Changes to accumulated other comprehensive income (loss) are as follows: Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Securities Unrealized Gain (Loss) on Derivatives Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) (in millions) Balance as of December 31, 2014 $ (41 ) $ 1 $ 5 $ (125 ) $ (160 ) Reclassification to earnings — — — 2 2 Effect of exchange rate changes and deferred taxes (86 ) — — 4 (82 ) Balance as of March 31, 2015 $ (127 ) $ 1 $ 5 $ (119 ) $ (240 ) Balance as of December 31, 2015 $ (198 ) $ 1 $ 5 $ (58 ) $ (250 ) Effect of exchange rate changes and deferred taxes 48 — — — 48 Balance as of March 31, 2016 $ (150 ) $ 1 $ 5 $ (58 ) $ (202 ) Reclassifications out of accumulated other comprehensive income (loss) to earnings during the three months ended March 31, 2016 and 2015 were as follows: Three months ended 2016 2015 (in millions) Defined Benefit Plans Amortization of prior service (benefit) cost (1) $ — $ — Amortization of net loss (1) — 2 Total before tax — 2 Tax effect — (1 ) Net of tax $ — $ 1 Total reclassifications for the period $ — $ 1 _______________________________________________________________________________ (1) These components are included in the computation of net periodic pension cost and were reclassified from accumulated other comprehensive income (loss) into cost of sales and selling, general and administrative expenses. Treasury Stock On August 6, 2014, our Board of Directors authorized a program to repurchase up to $1.0 billion of the common stock of CF Holdings through December 31, 2016. Repurchases under this program may be made from time to time in the open market, through privately negotiated transactions, through block transactions or otherwise. The manner, timing and amount of repurchases are determined by our management based on the evaluation of market conditions, stock price and other factors. No share repurchases were made during the first quarter of 2016 . In the first quarter of 2015 , we repurchased 4.1 million shares for $237 million . To date under this program, 15.9 million shares have been repurchased for an aggregate expenditure of $900 million . The number of shares has been retroactively restated to reflect the five -for-one split of the Company’s common stock effected in the form of a stock dividend that was distributed on June 17, 2015. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation West Fertilizer Co. On April 17, 2013, there was a fire and explosion at the West Fertilizer Co. fertilizer storage and distribution facility in West, Texas. According to published reports, 15 people were killed and approximately 200 people were injured in the incident, and the fire and explosion damaged or destroyed a number of homes and buildings around the facility. Various subsidiaries of CF Holdings (the CF Entities) have been named as defendants along with other companies in lawsuits filed in 2013, 2014 and 2015 in the District Court of McLennan County, Texas by the City of West, individual residents of the County and other parties seeking recovery for damages allegedly sustained as a result of the explosion. The cases have been consolidated for discovery and pretrial proceedings in the District Court of McLennan County under the caption "In re: West Explosion Cases." The two-year statute of limitations expired on April 17, 2015. As of that date, over 400 plaintiffs had filed claims, including at least 9 entities, 325 individuals, and 80 insurance companies. Plaintiffs allege various theories of negligence, strict liability, and breach of warranty under Texas law. Although we do not own or operate the facility or directly sell our products to West Fertilizer Co., products that the CF Entities have manufactured and sold to others have been delivered to the facility and may have been stored at the West facility at the time of the incident. The Court granted in part and denied in part the CF Entities' Motions for Summary Judgment in August 2015. Thirty-four cases have been resolved pursuant to confidential settlements fully funded by insurance. The remaining cases are in various stages of discovery and pre-trial proceedings. These cases will be set for trial in the upcoming months at the discretion of the Court. We believe we have strong legal and factual defenses and intend to continue defending the CF Entities vigorously in the pending lawsuits. Due to the uncertain nature of this litigation, the Company cannot provide a range of reasonably possible loss in these lawsuits. However, based upon currently available information, including available insurance coverage, we do not believe that the West Fertilizer Co. litigation will have a material adverse effect on our consolidated financial position, results of operations or cash flows. Other 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 routine matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. Environmental Louisiana Environmental Matters Clean Air Act—Section 185 Fee Our Donaldsonville nitrogen complex is located in a five-parish region near Baton Rouge, Louisiana that, as of 2005, was designated as being in "severe" nonattainment with respect to the national ambient air quality standard (NAAQS) for ozone (the 1-hour ozone standard) pursuant to the Federal Clean Air Act (the Act). Section 185 of the Act requires states, in their state implementation plans, to levy a fee (Section 185 fee) on major stationary sources (such as the Donaldsonville complex) located in a severe nonattainment area that did not meet the 1-hour ozone standard by November 30, 2005. The fee was to be assessed for each calendar year (beginning in 2006) until the area achieved compliance with the ozone NAAQS. Prior to the imposition of Section 185 fees, the Environmental Protection Agency (EPA) adopted a new ozone standard (the 8-hour ozone standard) and rescinded the 1-hour ozone standard. The Baton Rouge area was designated as a "moderate" nonattainment area with respect to the 8-hour ozone standard. However, because Section 185 fees had never been assessed prior to the rescission of the 1-hour ozone standard (rescinded prior to the November 30, 2005 ozone attainment deadline), the EPA concluded in a 2004 rulemaking implementing the 8-hour ozone standard that the Act did not require states to assess Section 185 fees. As a result, Section 185 fees were not assessed against us and other companies located in the Baton Rouge area. In 2006, the federal D.C. Circuit Court of Appeals rejected the EPA's position and held that Section 185 fees were controls that must be maintained and fees should have been assessed under the Act. In January 2008, the U.S. Supreme Court declined to accept the case for review, making the appellate court's decision final. In July 2011, the EPA approved a revision to Louisiana's air pollution program that eliminated the requirement for Baton Rouge area companies to pay Section 185 fees, based on Baton Rouge's ultimate attainment of the 1-hour standard through permanent and enforceable emissions reductions. EPA's approval of the Louisiana air program revision became effective on August 8, 2011. However, a recent decision by the federal D.C. Circuit Court of Appeals struck down a similar, but perhaps distinguishable, EPA guidance document regarding alternatives to Section 185 fees. At this time, the viability of EPA's approval of Louisiana's elimination of Section 185 fees is uncertain. Regardless of the approach ultimately adopted by the EPA, we expect that it is likely to be challenged by the environmental community, the states, and/or affected industries. Therefore, the costs associated with compliance with the Act cannot be determined at this time, and we cannot reasonably estimate the impact on our consolidated financial position, results of operations or cash flows. Furthermore, the area has seen significant reductions in ozone levels, attributable to federal and state regulations and community involvement. Ozone design values computed for the Baton Rouge nonattainment area suggest the area has achieved attainment with the 2008 8-hour ozone standard. On August 27, 2015, EPA proposed reclassifying the Baton Rouge nonattainment area for ozone as in attainment with the 2008 ozone standard based on 2012-2014 data. EPA has not yet finalized this reclassification. However, on October 1, 2015, EPA published a more stringent national ambient air quality standard for ozone that could cause Baton Rouge to again be classified as nonattainment area. Clean Air Act Information Request On February 26, 2009, we received a letter from the EPA under Section 114 of the Act requesting information and copies of records relating to compliance with New Source Review and New Source Performance Standards at the Donaldsonville facility. We have completed the submittal of all requested information. There has been no further contact from the EPA regarding this matter. Other CERCLA/Remediation Matters From time to time, we receive notices from governmental agencies or third parties alleging that we are a potentially responsible party at certain cleanup sites under CERCLA or other environmental cleanup laws. In 2011, we received a notice from the Idaho Department of Environmental Quality (IDEQ) that alleged that we were a potentially responsible party for the cleanup of a former phosphate mine site we owned in the late 1950s and early 1960s located in Georgetown Canyon, Idaho. The current owner of the property and a former mining contractor received similar notices for the site. In 2014, we and the current property owner entered into a Consent Order with IDEQ and the U.S. Forest Service to conduct a remedial investigation and feasibility study of the site. In 2015, we and several other parties received a notice that the U.S. Department of the Interior and other trustees intend to undertake a natural resource damage assessment for a group of former phosphate mines in southeast Idaho, including the former Georgetown Canyon mine. We are not able to estimate at this time our potential liability, if any, with respect to the cleanup of the former mine site or a possible claim for natural resource damages. However, based on currently available information, we do not expect that any remedial or financial obligations to which we may be subject involving this or other cleanup sites will have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Segment Disclosures
Segment Disclosures | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Disclosures | Segment Disclosures Our reportable segments consist of ammonia, granular urea, UAN, AN and Other. These segments are differentiated by products. Our management uses gross margin to evaluate segment performance and allocate resources. Total other operating costs and expenses (consisting of selling, general and administrative expenses and other operating—net) and non-operating expenses (interest and income taxes) are centrally managed and are not included in the measurement of segment profitability reviewed by management. Our assets, with the exception of goodwill, are not monitored by or reported to our CODM by segment; therefore, we do not present total assets by segment. Goodwill by segment is presented in Note 7—Goodwill and Other Intangible Assets . Segment data for sales, cost of sales and gross margin for the three months ended March 31, 2016 and 2015 are presented in the tables below. Ammonia Granular Urea (1) UAN (1) AN (1) Other (1) Consolidated (in millions) Three months ended March 31, 2016 Net sales $ 267 $ 235 $ 309 $ 125 $ 68 $ 1,004 Cost of sales 204 175 231 112 65 787 Gross margin $ 63 $ 60 $ 78 $ 13 $ 3 217 Total other operating costs and expenses 120 Equity in earnings of operating affiliates — Operating earnings $ 97 Three months ended March 31, 2015 (2) Net sales $ 288 $ 212 $ 356 $ 51 $ 47 $ 954 Cost of sales 168 100 197 43 30 538 Gross margin $ 120 $ 112 $ 159 $ 8 $ 17 416 Total other operating costs and expenses 58 Equity in earnings of operating affiliates 9 Operating earnings $ 367 _______________________________________________________________________________ (1) The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results. (2) In the third quarter of 2015, we changed the composition of our reportable segments. Prior-year results have been recast to conform with the new presentation of reportable segments. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Consolidating Financial Statements | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements The following condensed consolidating financial statements are presented in accordance with SEC Regulation S-X Rule 3-10, Financial statements of guarantors and issuers of guaranteed securities registered or being registered , and relates to the Public Senior Notes issued by CF Industries, a 100% owned subsidiary of CF Industries Holdings, Inc. (Parent), described in Note 12—Financing Agreements , and the full and unconditional guarantee of such Public Senior Notes by Parent and to debt securities of CF Industries, and the full and unconditional guarantee thereof by Parent, that may be offered and sold from time to time under the registration statements that have been filed or may be filed by Parent and CF Industries with the SEC. In the event that a subsidiary of Parent, other than CF Industries, becomes a borrower or a guarantor under the Revolving Credit Agreement (or any renewal, replacement or refinancing thereof), such subsidiary would be required to become a guarantor of the Public Senior Notes, provided that such requirement will no longer apply with respect to the Public Senior Notes due in 2023, 2034, 2043 and 2044 following the repayment of the Public Senior Notes due in 2018 and 2020 or the subsidiaries of Parent, other than CF Industries, otherwise becoming no longer subject to such a requirement to guarantee the Public Senior Notes due in 2018 and 2020. As of March 31, 2016 , none of such subsidiaries of Parent was, or was required to be, a guarantor to the Public Senior Notes. For purposes of the presentation of condensed consolidating financial information, the subsidiaries of Parent other than CF Industries are referred to as the Other Subsidiaries. Presented below are condensed consolidating statements of operations and statements of cash flows for Parent, CF Industries and the Other Subsidiaries for the three months ended March 31, 2016 and 2015 , and condensed consolidating balance sheets for Parent, CF Industries and the Other Subsidiaries as of March 31, 2016 and December 31, 2015 . The condensed consolidating financial statements presented below are not necessarily indicative of the financial position, results of operations, comprehensive income or cash flows of Parent, CF Industries or the Other Subsidiaries on a stand-alone basis. In these condensed consolidating financial statements, investments in subsidiaries are presented under the equity method, in which our investments are recorded at cost and adjusted for our ownership share of a subsidiary's cumulative results of operations, distributions and other equity changes, and the eliminating entries reflect primarily intercompany transactions such as sales, accounts receivable and accounts payable and the elimination of equity investments and earnings of subsidiaries. Condensed Consolidating Statement of Operations Three months ended March 31, 2016 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ 145 $ 1,037 $ (178 ) $ 1,004 Cost of sales — 48 917 (178 ) 787 Gross margin — 97 120 — 217 Selling, general and administrative expenses 1 1 43 — 45 Transaction costs 10 — 4 — 14 Other operating—net (1 ) 1 61 — 61 Total other operating costs and expenses 10 2 108 — 120 Equity in earnings of operating affiliates — — — — — Operating (losses) earnings (10 ) 95 12 — 97 Interest expense — 85 (24 ) (23 ) 38 Interest income — (17 ) (7 ) 23 (1 ) Net earnings of wholly owned subsidiaries (32 ) (14 ) — 46 — Other non-operating—net — — (2 ) — (2 ) Earnings before income taxes and equity in earnings of non-operating affiliates 22 41 45 (46 ) 62 Income tax (benefit) provision (4 ) 9 10 — 15 Equity in earnings of non-operating affiliates—net of taxes — — — — — Net earnings 26 32 35 (46 ) 47 Less: Net earnings attributable to noncontrolling interests — — 21 — 21 Net earnings attributable to common stockholders $ 26 $ 32 $ 14 $ (46 ) $ 26 Condensed Consolidating Statement of Comprehensive Income Three months ended March 31, 2016 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Net earnings $ 26 $ 32 $ 35 $ (46 ) $ 47 Other comprehensive income (losses) 48 48 47 (95 ) 48 Comprehensive income 74 80 82 (141 ) 95 Less: Comprehensive income attributable to noncontrolling interests — — 21 — 21 Comprehensive income attributable to common stockholders $ 74 $ 80 $ 61 $ (141 ) $ 74 Condensed Consolidating Statement of Operations Three months ended March 31, 2015 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ 81 $ 1,004 $ (131 ) $ 954 Cost of sales — 81 588 (131 ) 538 Gross margin — — 416 — 416 Selling, general and administrative expenses 1 — 39 — 40 Other operating—net — (5 ) 23 — 18 Total other operating costs and expenses 1 (5 ) 62 — 58 Equity in earnings of operating affiliates — — 9 — 9 Operating (losses) earnings (1 ) 5 363 — 367 Interest expense — 65 (31 ) — 34 Interest income — — (1 ) — (1 ) Net earnings of wholly owned subsidiaries (231 ) (271 ) — 502 — Other non-operating—net — — — — — Earnings before income taxes and equity in earnings of non-operating affiliates 230 211 395 (502 ) 334 Income tax (benefit) provision (1 ) (20 ) 134 — 113 Equity in earnings of non-operating affiliates—net of taxes — — 15 — 15 Net earnings 231 231 276 (502 ) 236 Less: Net earnings attributable to noncontrolling interest — — 5 — 5 Net earnings attributable to common stockholders $ 231 $ 231 $ 271 $ (502 ) $ 231 Condensed Consolidating Statement of Comprehensive Income Three months ended March 31, 2015 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Net earnings $ 231 $ 231 $ 276 $ (502 ) $ 236 Other comprehensive income (losses) (80 ) (80 ) (81 ) 161 (80 ) Comprehensive income 151 151 195 (341 ) 156 Less: Comprehensive income attributable to noncontrolling interest — — 5 — 5 Comprehensive income attributable to common stockholders $ 151 $ 151 $ 190 $ (341 ) $ 151 Condensed Consolidating Balance Sheet March 31, 2016 Parent CF Industries Other Subsidiaries Eliminations and Reclassifications Consolidated (in millions) Assets Current assets: Cash and cash equivalents $ 3 $ 1 $ 2,685 $ — $ 2,689 Restricted cash — — 12 — 12 Accounts and notes receivable—net — 1,422 1,593 (2,753 ) 262 Inventories — — 304 — 304 Prepaid income taxes — — 207 — 207 Other current assets — 24 22 — 46 Total current assets 3 1,447 4,823 (2,753 ) 3,520 Property, plant and equipment—net 4 — 9,048 — 9,052 Investments in affiliates 4,312 9,711 298 (14,023 ) 298 Due from affiliates 571 — 2 (573 ) — Goodwill — — 2,384 — 2,384 Other assets — 18 309 — 327 Total assets $ 4,890 $ 11,176 $ 16,864 $ (17,349 ) $ 15,581 Liabilities and Equity Current liabilities: Accounts and notes payable and accrued expenses $ 848 $ 624 $ 2,161 $ (2,753 ) $ 880 Income taxes payable — — 4 — 4 Customer advances — — 227 — 227 Other current liabilities — — 162 — 162 Total current liabilities 848 624 2,554 (2,753 ) 1,273 Long-term debt — 5,539 — — 5,539 Deferred income taxes — 62 893 — 955 Due to affiliates — 573 — (573 ) — Other liabilities — 65 555 — 620 Equity: Stockholders' equity: Preferred stock — — 16 (16 ) — Common stock 2 — 1 (1 ) 2 Paid-in capital 1,381 (13 ) 9,937 (9,924 ) 1,381 Retained earnings 3,014 4,528 (41 ) (4,487 ) 3,014 Treasury stock (153 ) — — — (153 ) Accumulated other comprehensive income (loss) (202 ) (202 ) (203 ) 405 (202 ) Total stockholders' equity 4,042 4,313 9,710 (14,023 ) 4,042 Noncontrolling interests — — 3,152 — 3,152 Total equity 4,042 4,313 12,862 (14,023 ) 7,194 Total liabilities and equity $ 4,890 $ 11,176 $ 16,864 $ (17,349 ) $ 15,581 Condensed Consolidating Balance Sheet December 31, 2015 Parent CF Industries Other Subsidiaries Eliminations and Reclassifications Consolidated (in millions) Assets Current assets: Cash and cash equivalents $ 1 $ — $ 285 $ — $ 286 Restricted cash — — 23 — 23 Accounts and notes receivable—net 1 2,987 1,565 (4,286 ) 267 Inventories — — 321 — 321 Prepaid income taxes — — 185 — 185 Other current assets — 24 21 — 45 Total current assets 2 3,011 2,400 (4,286 ) 1,127 Property, plant and equipment—net — — 8,539 — 8,539 Investments in affiliates 4,303 8,148 298 (12,451 ) 298 Due from affiliates 571 — 2 (573 ) — Goodwill — — 2,390 — 2,390 Other assets — 19 310 — 329 Total assets $ 4,876 $ 11,178 $ 13,939 $ (17,310 ) $ 12,683 Liabilities and Equity Current liabilities: Accounts and notes payable and accrued expenses $ 841 $ 648 $ 3,715 $ (4,286 ) $ 918 Income taxes payable — — 5 — 5 Customer advances — — 162 — 162 Other current liabilities — — 130 — 130 Total current liabilities 841 648 4,012 (4,286 ) 1,215 Long-term debt — 5,537 — — 5,537 Deferred income taxes — 52 864 — 916 Due to affiliates — 573 — (573 ) — Other liabilities — 66 562 — 628 Equity: Stockholders' equity: Preferred stock — — 17 (17 ) — Common stock 2 — 1 (1 ) 2 Paid-in capital 1,378 (13 ) 8,365 (8,352 ) 1,378 Retained earnings 3,058 4,565 16 (4,581 ) 3,058 Treasury stock (153 ) — — — (153 ) Accumulated other comprehensive income (loss) (250 ) (250 ) (250 ) 500 (250 ) Total stockholders' equity 4,035 4,302 8,149 (12,451 ) 4,035 Noncontrolling interest — — 352 — 352 Total equity 4,035 4,302 8,501 (12,451 ) 4,387 Total liabilities and equity $ 4,876 $ 11,178 $ 13,939 $ (17,310 ) $ 12,683 Condensed Consolidating Statement of Cash Flows Three months ended March 31, 2016 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net earnings $ 26 $ 32 $ 35 $ (46 ) $ 47 Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: Depreciation and amortization — 2 144 — 146 Deferred income taxes — 10 26 — 36 Stock-based compensation expense 4 — — — 4 Unrealized loss on derivatives — — 18 — 18 Loss on disposal of property, plant and equipment — — 3 — 3 Undistributed (earnings) loss of affiliates—net (32 ) (14 ) (4 ) 46 (4 ) Changes in: Accounts and notes receivable—net 1 63 (33 ) (27 ) 4 Inventories — — 16 — 16 Accrued and prepaid income taxes — — (23 ) — (23 ) Accounts and notes payable and accrued expenses (1 ) (11 ) (21 ) 27 (6 ) Customer advances — — 65 — 65 Other—net — — 40 — 40 Net cash (used in) provided by operating activities (2 ) 82 266 — 346 Investing Activities: Additions to property, plant and equipment (5 ) — (671 ) — (676 ) Proceeds from sale of property, plant and equipment — — 2 — 2 Withdrawals from restricted cash funds — — 11 — 11 Other—net — — 1 — 1 Net cash used in investing activities (5 ) — (657 ) — (662 ) Financing Activities: Short-term debt—net 9 (81 ) 72 — — Dividends paid on common stock (70 ) (70 ) (70 ) 140 (70 ) Dividends to/from affiliates 70 70 — (140 ) — Issuance of noncontrolling interest in CFN — — 2,800 — 2,800 Distributions to noncontrolling interest — — (13 ) — (13 ) Net cash provided by (used in) financing activities 9 (81 ) 2,789 — 2,717 Effect of exchange rate changes on cash and cash equivalents — — 2 — 2 Increase in cash and cash equivalents 2 1 2,400 — 2,403 Cash and cash equivalents at beginning of period 1 — 285 — 286 Cash and cash equivalents at end of period $ 3 $ 1 $ 2,685 $ — $ 2,689 Condensed Consolidating Statement of Cash Flows Three months ended March 31, 2015 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net earnings $ 231 $ 231 $ 276 $ (502 ) $ 236 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization — 2 113 — 115 Deferred income taxes — 10 (10 ) — — Stock-based compensation expense 3 — 1 — 4 Excess tax benefit from stock-based compensation (1 ) — — — (1 ) Unrealized gain on derivatives — — (11 ) — (11 ) Loss on disposal of property, plant and equipment — — 6 — 6 Undistributed (earnings) loss of affiliates—net (231 ) (271 ) (18 ) 502 (18 ) Due to/from affiliates—net 1 1 (2 ) — — Changes in: Accounts and notes receivable—net — 18 17 (11 ) 24 Inventories — — (68 ) — (68 ) Accrued and prepaid income taxes — (14 ) 98 — 84 Accounts and notes payable and accrued expenses — 28 (50 ) 11 (11 ) Customer advances — — 170 — 170 Other—net — — 1 — 1 Net cash provided by operating activities 3 5 523 — 531 Investing Activities: Additions to property, plant and equipment — — (445 ) — (445 ) Proceeds from sale of property, plant and equipment — — 3 — 3 Withdrawals from restricted cash funds — — 23 — 23 Other—net — — (11 ) — (11 ) Net cash used in investing activities — — (430 ) — (430 ) Financing Activities: Short-term debt—net 226 (50 ) (176 ) — — Financing fees — (2 ) — — (2 ) Dividends paid on common stock (72 ) (72 ) (72 ) 144 (72 ) Dividends to/from affiliates 72 72 — (144 ) — Distributions to noncontrolling interest — — (11 ) — (11 ) Purchases of treasury stock (236 ) — — — (236 ) Issuances of common stock under employee stock plans 6 — — — 6 Excess tax benefit from stock-based compensation 1 — — — 1 Net cash used in financing activities (3 ) (52 ) (259 ) — (314 ) Effect of exchange rate changes on cash and cash equivalents — — (5 ) — (5 ) Decrease in cash and cash equivalents — (47 ) (171 ) — (218 ) Cash and cash equivalents at beginning of period — 106 1,891 — 1,997 Cash and cash equivalents at end of period $ — $ 59 $ 1,720 $ — $ 1,779 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the preliminary allocation of the total fair value of CF Fertilisers UK to the assets acquired and liabilities assumed in its acquisition on July 31, 2015. The estimated fair value of the assets acquired and liabilities assumed is based on the estimated net realizable value for inventory, a replacement cost approach for property, plant and equipment and the income approach for intangible assets. Final determination of the fair values may result in further adjustments to the amounts presented below. Original Valuation Net Adjustments to Fair Value in 2015 Adjusted Valuation as of December 31, 2015 (in millions) Fair value of consideration transferred $ 570 $ — $ 570 Fair value of 50% of equity interest already held by the Company 570 — 570 Total fair value $ 1,140 $ — $ 1,140 Assets acquired and liabilities assumed Current assets $ 165 $ 1 $ 166 Property, plant and equipment 898 — 898 Goodwill 328 (8 ) 320 Other assets 140 (1 ) 139 Total assets acquired 1,531 (8 ) 1,523 Current liabilities 74 1 75 Deferred tax liabilities—noncurrent 129 (9 ) 120 Other liabilities 188 — 188 Total liabilities assumed 391 (8 ) 383 Total net assets acquired $ 1,140 $ — $ 1,140 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Summary of net earnings per share | Net earnings per share were computed as follows: Three months ended 2016 2015 (in millions, except per share amounts) Net earnings attributable to common stockholders $ 26 $ 231 Basic earnings per common share (1) : Weighted-average common shares outstanding 233.2 239.7 Net earnings attributable to common stockholders $ 0.11 $ 0.96 Diluted earnings per common share (1) : Weighted-average common shares outstanding 233.2 239.7 Dilutive common shares—stock options 0.3 0.9 Diluted weighted-average shares outstanding 233.5 240.6 Net earnings attributable to common stockholders $ 0.11 $ 0.96 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: March 31, December 31, (in millions) Finished goods $ 269 $ 286 Raw materials, spare parts and supplies 35 35 Total inventories $ 304 $ 321 |
Property, Plant and Equipment30
Property, Plant and Equipment-Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Components of property, plant and equipment-net | Property, plant and equipment—net consists of the following: March 31, December 31, (in millions) Land $ 68 $ 68 Machinery and equipment 7,757 7,348 Buildings and improvements 335 271 Construction in progress (1) 3,831 3,626 Property, plant and equipment 11,991 11,313 Less: Accumulated depreciation and amortization 2,939 2,774 Property, plant and equipment—net $ 9,052 $ 8,539 _______________________________________________________________________________ (1) As of March 31, 2016 and December 31, 2015 , we had construction in progress that was accrued but unpaid of $515 million and $543 million , respectively. These amounts included accruals related to our capacity expansion projects of $463 million and $471 million as of March 31, 2016 and December 31, 2015 , respectively. |
Summary of plant turnaround activity | The following is a summary of plant turnaround activity: Three months ended 2016 2015 (in millions) Net capitalized turnaround costs: Beginning balance $ 220 $ 153 Additions 10 27 Depreciation (22 ) (14 ) Effect of exchange rate changes 3 (2 ) Ending balance $ 211 $ 164 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of carrying amount of goodwill by business segment | The following table shows the carrying amount of goodwill by reportable segment as of March 31, 2016 and December 31, 2015 : Ammonia Granular Urea UAN AN Other Total (in millions) Balance as of December 31, 2015 $ 587 $ 828 $ 576 $ 324 $ 75 $ 2,390 Effect of exchange rate changes 1 1 — (7 ) (1 ) (6 ) Balance as of March 31, 2016 $ 588 $ 829 $ 576 $ 317 $ 74 $ 2,384 |
Schedule of the identifiable intangibles and their carrying values presented in other noncurrent assets on consolidated balance sheet | identifiable intangible assets have definite lives and are presented in other assets on our consolidated balance sheets at gross carrying amount, net of accumulated amortization, as follows: March 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (in millions) Intangible assets: Customer relationships $ 137 $ (20 ) $ 117 $ 140 $ (18 ) $ 122 TerraCair brand 10 (10 ) — 10 (10 ) — Trade names 34 (1 ) 33 35 (1 ) 34 Total intangible assets $ 181 $ (31 ) $ 150 $ 185 $ (29 ) $ 156 |
Schedule of estimated future amortization expense | Total estimated amortization expense for the remainder of 2016 and each of the five succeeding fiscal years is as follows: Estimated Amortization Expense (in millions) Remainder of 2016 $ 7 2017 9 2018 9 2019 9 2020 9 2021 9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of cash and cash equivalents and other investments reconciliation from adjusted cost to fair value | Our cash and cash equivalents and other investments consist of the following: March 31, 2016 Cost Basis Unrealized Gains Unrealized Losses Fair Value (in millions) Cash $ 136 $ — $ — $ 136 Cash equivalents: U.S. and Canadian government obligations 2,533 — — 2,533 Other debt securities 20 — — 20 Total cash and cash equivalents $ 2,689 $ — $ — $ 2,689 Restricted cash 12 — — 12 Nonqualified employee benefit trusts 18 1 — 19 December 31, 2015 Cost Basis Unrealized Gains Unrealized Losses Fair Value (in millions) Cash $ 71 $ — $ — $ 71 Cash equivalents: U.S. and Canadian government obligations 190 — — 190 Other debt securities 25 — — 25 Total cash and cash equivalents $ 286 $ — $ — $ 286 Restricted cash 23 — — 23 Nonqualified employee benefit trusts 18 1 — 19 |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables present assets and liabilities included in our consolidated balance sheets as of March 31, 2016 and December 31, 2015 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value: March 31, 2016 Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash equivalents $ 2,553 $ 2,553 $ — $ — Restricted cash 12 12 — — Derivative assets 3 — 3 — Nonqualified employee benefit trusts 19 19 — — Derivative liabilities (232 ) — (232 ) — December 31, 2015 Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash equivalents $ 215 $ 215 $ — $ — Restricted cash 23 23 — — Nonqualified employee benefit trusts 19 19 — — Derivative liabilities (211 ) — (211 ) — |
Schedule of carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair values of our financial instruments are as follows: March 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Long-term debt $ 5,539 $ 5,614 $ 5,537 $ 5,456 |
Interest Expense (Tables)
Interest Expense (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Interest Expense [Abstract] | |
Schedule of interest expense | Details of interest expense are as follows: Three months ended 2016 2015 (in millions) Interest on borrowings (1) $ 76 $ 63 Fees on financing agreements (1) 4 1 Interest on tax liabilities 1 1 Interest capitalized (43 ) (31 ) Total interest expense $ 38 $ 34 _______________________________________________________________________________ (1) See Note 12—Financing Agreements for additional information. |
Financing Agreements (Tables)
Financing Agreements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of long-term debt | Long-term debt presented on our consolidated balance sheets as of March 31, 2016 and December 31, 2015 consisted of the following unsecured senior notes: Effective Interest Rate March 31, December 31, Principal Outstanding Carrying Amount (1) Principal Outstanding Carrying Amount (1)(2) (in millions) Public Senior Notes: 6.875% due 2018 7.344% $ 800 $ 793 $ 800 $ 792 7.125% due 2020 7.529% 800 789 800 788 3.450% due 2023 3.562% 750 745 750 745 5.150% due 2034 5.279% 750 739 750 739 4.950% due 2043 5.031% 750 741 750 741 5.375% due 2044 5.465% 750 740 750 740 Private Senior Notes: 4.490% due 2022 4.626% 250 248 250 248 4.930% due 2025 5.034% 500 496 500 496 5.030% due 2027 5.121% 250 248 250 248 Total long-term debt $ 5,600 $ 5,539 $ 5,600 $ 5,537 |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of effect of derivatives in the consolidated statements of operations | Unrealized gain (loss) recognized in income Three months ended Location 2016 2015 (in millions) Natural gas derivatives Cost of sales $ (21 ) $ 28 Foreign exchange contracts Other operating—net 3 (12 ) Unrealized (losses) gains recognized in income $ (18 ) $ 16 Gain (loss) in income Three months ended All Derivatives 2016 2015 (in millions) Unrealized (losses) gains $ (18 ) $ 16 Realized losses (56 ) (43 ) Net derivative losses $ (74 ) $ (27 ) |
Schedule of fair values of derivatives in our consolidated balance sheet | The fair values of derivatives on our consolidated balance sheets are shown below. As of March 31, 2016 and December 31, 2015 , none of our derivative instruments were designated as hedging instruments. For additional information on derivative fair values, see Note 9—Fair Value Measurements . Asset Derivatives Liability Derivatives Balance Sheet Location March 31, December 31, Balance Sheet Location March 31, December 31, (in millions) (in millions) Foreign exchange contracts Other current assets $ 3 $ — Other current liabilities $ — $ — Foreign exchange contracts Other assets — — Other liabilities — — Natural gas derivatives Other current assets — — Other current liabilities (162 ) (130 ) Natural gas derivatives Other assets — — Other liabilities (70 ) (81 ) Total derivatives $ 3 $ — $ (232 ) $ (211 ) Current / Noncurrent totals Other current assets $ 3 $ — Other current liabilities $ (162 ) $ (130 ) Other assets — — Other liabilities (70 ) (81 ) Total derivatives $ 3 $ — $ (232 ) $ (211 ) |
Schedule of amounts relevant to offsetting of derivative assets | The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of March 31, 2016 and December 31, 2015 : Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial instruments Cash collateral received (pledged) Net amount (in millions) March 31, 2016 Total derivative assets $ 3 $ 3 $ — $ — Total derivative liabilities 232 3 — 229 Net derivative liabilities $ (229 ) $ — $ — $ (229 ) December 31, 2015 Total derivative assets $ — $ — $ — $ — Total derivative liabilities 211 — — 211 Net derivative liabilities $ (211 ) $ — $ — $ (211 ) _______________________________________________________________________________ (1) We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, the gross amounts recognized and net amounts presented are the same. |
Schedule of amounts relevant to offsetting of derivative liabilities | The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of March 31, 2016 and December 31, 2015 : Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial instruments Cash collateral received (pledged) Net amount (in millions) March 31, 2016 Total derivative assets $ 3 $ 3 $ — $ — Total derivative liabilities 232 3 — 229 Net derivative liabilities $ (229 ) $ — $ — $ (229 ) December 31, 2015 Total derivative assets $ — $ — $ — $ — Total derivative liabilities 211 — — 211 Net derivative liabilities $ (211 ) $ — $ — $ (211 ) _______________________________________________________________________________ (1) We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, the gross amounts recognized and net amounts presented are the same. |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Schedule of reconciliation of the beginning and ending balances of noncontrolling interest and distributions payable to the noncontrolling interests on the entity's consolidated balance sheet | A reconciliation of the beginning and ending balances of noncontrolling interests and distributions payable to noncontrolling interests in our consolidated balance sheets is provided below. Three months ended 2016 2015 CFN TNCLP Total TNCLP (in millions) Noncontrolling interests: Beginning balance $ — $ 352 $ 352 $ 363 Issuance of noncontrolling interest in CFN 2,792 — 2,792 — Earnings attributable to noncontrolling interests 17 4 21 5 Declaration of distributions payable — (13 ) (13 ) (11 ) Ending balance $ 2,809 $ 343 $ 3,152 $ 357 Distributions payable to noncontrolling interests: Beginning balance $ — $ — $ — $ — Declaration of distributions payable — 13 13 11 Distributions to noncontrolling interest — (13 ) (13 ) (11 ) Ending balance $ — $ — $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of changes to AOCI | Changes to accumulated other comprehensive income (loss) are as follows: Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Securities Unrealized Gain (Loss) on Derivatives Defined Benefit Plans Accumulated Other Comprehensive Income (Loss) (in millions) Balance as of December 31, 2014 $ (41 ) $ 1 $ 5 $ (125 ) $ (160 ) Reclassification to earnings — — — 2 2 Effect of exchange rate changes and deferred taxes (86 ) — — 4 (82 ) Balance as of March 31, 2015 $ (127 ) $ 1 $ 5 $ (119 ) $ (240 ) Balance as of December 31, 2015 $ (198 ) $ 1 $ 5 $ (58 ) $ (250 ) Effect of exchange rate changes and deferred taxes 48 — — — 48 Balance as of March 31, 2016 $ (150 ) $ 1 $ 5 $ (58 ) $ (202 ) |
Schedule of reclassifications out of AOCI | Reclassifications out of accumulated other comprehensive income (loss) to earnings during the three months ended March 31, 2016 and 2015 were as follows: Three months ended 2016 2015 (in millions) Defined Benefit Plans Amortization of prior service (benefit) cost (1) $ — $ — Amortization of net loss (1) — 2 Total before tax — 2 Tax effect — (1 ) Net of tax $ — $ 1 Total reclassifications for the period $ — $ 1 _______________________________________________________________________________ (1) These components are included in the computation of net periodic pension cost and were reclassified from accumulated other comprehensive income (loss) into cost of sales and selling, general and administrative expenses. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of segment data for sales, cost of sales and gross margin | Segment data for sales, cost of sales and gross margin for the three months ended March 31, 2016 and 2015 are presented in the tables below. Ammonia Granular Urea (1) UAN (1) AN (1) Other (1) Consolidated (in millions) Three months ended March 31, 2016 Net sales $ 267 $ 235 $ 309 $ 125 $ 68 $ 1,004 Cost of sales 204 175 231 112 65 787 Gross margin $ 63 $ 60 $ 78 $ 13 $ 3 217 Total other operating costs and expenses 120 Equity in earnings of operating affiliates — Operating earnings $ 97 Three months ended March 31, 2015 (2) Net sales $ 288 $ 212 $ 356 $ 51 $ 47 $ 954 Cost of sales 168 100 197 43 30 538 Gross margin $ 120 $ 112 $ 159 $ 8 $ 17 416 Total other operating costs and expenses 58 Equity in earnings of operating affiliates 9 Operating earnings $ 367 _______________________________________________________________________________ (1) The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results. (2) In the third quarter of 2015, we changed the composition of our reportable segments. Prior-year results have been recast to conform with the new presentation of reportable segments. |
Condensed Consolidating Finan39
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Consolidating Financial Statements | |
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statement of Operations Three months ended March 31, 2016 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ 145 $ 1,037 $ (178 ) $ 1,004 Cost of sales — 48 917 (178 ) 787 Gross margin — 97 120 — 217 Selling, general and administrative expenses 1 1 43 — 45 Transaction costs 10 — 4 — 14 Other operating—net (1 ) 1 61 — 61 Total other operating costs and expenses 10 2 108 — 120 Equity in earnings of operating affiliates — — — — — Operating (losses) earnings (10 ) 95 12 — 97 Interest expense — 85 (24 ) (23 ) 38 Interest income — (17 ) (7 ) 23 (1 ) Net earnings of wholly owned subsidiaries (32 ) (14 ) — 46 — Other non-operating—net — — (2 ) — (2 ) Earnings before income taxes and equity in earnings of non-operating affiliates 22 41 45 (46 ) 62 Income tax (benefit) provision (4 ) 9 10 — 15 Equity in earnings of non-operating affiliates—net of taxes — — — — — Net earnings 26 32 35 (46 ) 47 Less: Net earnings attributable to noncontrolling interests — — 21 — 21 Net earnings attributable to common stockholders $ 26 $ 32 $ 14 $ (46 ) $ 26 Condensed Consolidating Statement of Operations Three months ended March 31, 2015 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ 81 $ 1,004 $ (131 ) $ 954 Cost of sales — 81 588 (131 ) 538 Gross margin — — 416 — 416 Selling, general and administrative expenses 1 — 39 — 40 Other operating—net — (5 ) 23 — 18 Total other operating costs and expenses 1 (5 ) 62 — 58 Equity in earnings of operating affiliates — — 9 — 9 Operating (losses) earnings (1 ) 5 363 — 367 Interest expense — 65 (31 ) — 34 Interest income — — (1 ) — (1 ) Net earnings of wholly owned subsidiaries (231 ) (271 ) — 502 — Other non-operating—net — — — — — Earnings before income taxes and equity in earnings of non-operating affiliates 230 211 395 (502 ) 334 Income tax (benefit) provision (1 ) (20 ) 134 — 113 Equity in earnings of non-operating affiliates—net of taxes — — 15 — 15 Net earnings 231 231 276 (502 ) 236 Less: Net earnings attributable to noncontrolling interest — — 5 — 5 Net earnings attributable to common stockholders $ 231 $ 231 $ 271 $ (502 ) $ 231 |
Schedule of Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Three months ended March 31, 2015 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Net earnings $ 231 $ 231 $ 276 $ (502 ) $ 236 Other comprehensive income (losses) (80 ) (80 ) (81 ) 161 (80 ) Comprehensive income 151 151 195 (341 ) 156 Less: Comprehensive income attributable to noncontrolling interest — — 5 — 5 Comprehensive income attributable to common stockholders $ 151 $ 151 $ 190 $ (341 ) $ 151 Condensed Consolidating Statement of Comprehensive Income Three months ended March 31, 2016 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Net earnings $ 26 $ 32 $ 35 $ (46 ) $ 47 Other comprehensive income (losses) 48 48 47 (95 ) 48 Comprehensive income 74 80 82 (141 ) 95 Less: Comprehensive income attributable to noncontrolling interests — — 21 — 21 Comprehensive income attributable to common stockholders $ 74 $ 80 $ 61 $ (141 ) $ 74 |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheet March 31, 2016 Parent CF Industries Other Subsidiaries Eliminations and Reclassifications Consolidated (in millions) Assets Current assets: Cash and cash equivalents $ 3 $ 1 $ 2,685 $ — $ 2,689 Restricted cash — — 12 — 12 Accounts and notes receivable—net — 1,422 1,593 (2,753 ) 262 Inventories — — 304 — 304 Prepaid income taxes — — 207 — 207 Other current assets — 24 22 — 46 Total current assets 3 1,447 4,823 (2,753 ) 3,520 Property, plant and equipment—net 4 — 9,048 — 9,052 Investments in affiliates 4,312 9,711 298 (14,023 ) 298 Due from affiliates 571 — 2 (573 ) — Goodwill — — 2,384 — 2,384 Other assets — 18 309 — 327 Total assets $ 4,890 $ 11,176 $ 16,864 $ (17,349 ) $ 15,581 Liabilities and Equity Current liabilities: Accounts and notes payable and accrued expenses $ 848 $ 624 $ 2,161 $ (2,753 ) $ 880 Income taxes payable — — 4 — 4 Customer advances — — 227 — 227 Other current liabilities — — 162 — 162 Total current liabilities 848 624 2,554 (2,753 ) 1,273 Long-term debt — 5,539 — — 5,539 Deferred income taxes — 62 893 — 955 Due to affiliates — 573 — (573 ) — Other liabilities — 65 555 — 620 Equity: Stockholders' equity: Preferred stock — — 16 (16 ) — Common stock 2 — 1 (1 ) 2 Paid-in capital 1,381 (13 ) 9,937 (9,924 ) 1,381 Retained earnings 3,014 4,528 (41 ) (4,487 ) 3,014 Treasury stock (153 ) — — — (153 ) Accumulated other comprehensive income (loss) (202 ) (202 ) (203 ) 405 (202 ) Total stockholders' equity 4,042 4,313 9,710 (14,023 ) 4,042 Noncontrolling interests — — 3,152 — 3,152 Total equity 4,042 4,313 12,862 (14,023 ) 7,194 Total liabilities and equity $ 4,890 $ 11,176 $ 16,864 $ (17,349 ) $ 15,581 Condensed Consolidating Balance Sheet December 31, 2015 Parent CF Industries Other Subsidiaries Eliminations and Reclassifications Consolidated (in millions) Assets Current assets: Cash and cash equivalents $ 1 $ — $ 285 $ — $ 286 Restricted cash — — 23 — 23 Accounts and notes receivable—net 1 2,987 1,565 (4,286 ) 267 Inventories — — 321 — 321 Prepaid income taxes — — 185 — 185 Other current assets — 24 21 — 45 Total current assets 2 3,011 2,400 (4,286 ) 1,127 Property, plant and equipment—net — — 8,539 — 8,539 Investments in affiliates 4,303 8,148 298 (12,451 ) 298 Due from affiliates 571 — 2 (573 ) — Goodwill — — 2,390 — 2,390 Other assets — 19 310 — 329 Total assets $ 4,876 $ 11,178 $ 13,939 $ (17,310 ) $ 12,683 Liabilities and Equity Current liabilities: Accounts and notes payable and accrued expenses $ 841 $ 648 $ 3,715 $ (4,286 ) $ 918 Income taxes payable — — 5 — 5 Customer advances — — 162 — 162 Other current liabilities — — 130 — 130 Total current liabilities 841 648 4,012 (4,286 ) 1,215 Long-term debt — 5,537 — — 5,537 Deferred income taxes — 52 864 — 916 Due to affiliates — 573 — (573 ) — Other liabilities — 66 562 — 628 Equity: Stockholders' equity: Preferred stock — — 17 (17 ) — Common stock 2 — 1 (1 ) 2 Paid-in capital 1,378 (13 ) 8,365 (8,352 ) 1,378 Retained earnings 3,058 4,565 16 (4,581 ) 3,058 Treasury stock (153 ) — — — (153 ) Accumulated other comprehensive income (loss) (250 ) (250 ) (250 ) 500 (250 ) Total stockholders' equity 4,035 4,302 8,149 (12,451 ) 4,035 Noncontrolling interest — — 352 — 352 Total equity 4,035 4,302 8,501 (12,451 ) 4,387 Total liabilities and equity $ 4,876 $ 11,178 $ 13,939 $ (17,310 ) $ 12,683 |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows Three months ended March 31, 2016 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net earnings $ 26 $ 32 $ 35 $ (46 ) $ 47 Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: Depreciation and amortization — 2 144 — 146 Deferred income taxes — 10 26 — 36 Stock-based compensation expense 4 — — — 4 Unrealized loss on derivatives — — 18 — 18 Loss on disposal of property, plant and equipment — — 3 — 3 Undistributed (earnings) loss of affiliates—net (32 ) (14 ) (4 ) 46 (4 ) Changes in: Accounts and notes receivable—net 1 63 (33 ) (27 ) 4 Inventories — — 16 — 16 Accrued and prepaid income taxes — — (23 ) — (23 ) Accounts and notes payable and accrued expenses (1 ) (11 ) (21 ) 27 (6 ) Customer advances — — 65 — 65 Other—net — — 40 — 40 Net cash (used in) provided by operating activities (2 ) 82 266 — 346 Investing Activities: Additions to property, plant and equipment (5 ) — (671 ) — (676 ) Proceeds from sale of property, plant and equipment — — 2 — 2 Withdrawals from restricted cash funds — — 11 — 11 Other—net — — 1 — 1 Net cash used in investing activities (5 ) — (657 ) — (662 ) Financing Activities: Short-term debt—net 9 (81 ) 72 — — Dividends paid on common stock (70 ) (70 ) (70 ) 140 (70 ) Dividends to/from affiliates 70 70 — (140 ) — Issuance of noncontrolling interest in CFN — — 2,800 — 2,800 Distributions to noncontrolling interest — — (13 ) — (13 ) Net cash provided by (used in) financing activities 9 (81 ) 2,789 — 2,717 Effect of exchange rate changes on cash and cash equivalents — — 2 — 2 Increase in cash and cash equivalents 2 1 2,400 — 2,403 Cash and cash equivalents at beginning of period 1 — 285 — 286 Cash and cash equivalents at end of period $ 3 $ 1 $ 2,685 $ — $ 2,689 Condensed Consolidating Statement of Cash Flows Three months ended March 31, 2015 Parent CF Industries Other Subsidiaries Eliminations Consolidated (in millions) Operating Activities: Net earnings $ 231 $ 231 $ 276 $ (502 ) $ 236 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization — 2 113 — 115 Deferred income taxes — 10 (10 ) — — Stock-based compensation expense 3 — 1 — 4 Excess tax benefit from stock-based compensation (1 ) — — — (1 ) Unrealized gain on derivatives — — (11 ) — (11 ) Loss on disposal of property, plant and equipment — — 6 — 6 Undistributed (earnings) loss of affiliates—net (231 ) (271 ) (18 ) 502 (18 ) Due to/from affiliates—net 1 1 (2 ) — — Changes in: Accounts and notes receivable—net — 18 17 (11 ) 24 Inventories — — (68 ) — (68 ) Accrued and prepaid income taxes — (14 ) 98 — 84 Accounts and notes payable and accrued expenses — 28 (50 ) 11 (11 ) Customer advances — — 170 — 170 Other—net — — 1 — 1 Net cash provided by operating activities 3 5 523 — 531 Investing Activities: Additions to property, plant and equipment — — (445 ) — (445 ) Proceeds from sale of property, plant and equipment — — 3 — 3 Withdrawals from restricted cash funds — — 23 — 23 Other—net — — (11 ) — (11 ) Net cash used in investing activities — — (430 ) — (430 ) Financing Activities: Short-term debt—net 226 (50 ) (176 ) — — Financing fees — (2 ) — — (2 ) Dividends paid on common stock (72 ) (72 ) (72 ) 144 (72 ) Dividends to/from affiliates 72 72 — (144 ) — Distributions to noncontrolling interest — — (11 ) — (11 ) Purchases of treasury stock (236 ) — — — (236 ) Issuances of common stock under employee stock plans 6 — — — 6 Excess tax benefit from stock-based compensation 1 — — — 1 Net cash used in financing activities (3 ) (52 ) (259 ) — (314 ) Effect of exchange rate changes on cash and cash equivalents — — (5 ) — (5 ) Decrease in cash and cash equivalents — (47 ) (171 ) — (218 ) Cash and cash equivalents at beginning of period — 106 1,891 — 1,997 Cash and cash equivalents at end of period $ — $ 59 $ 1,720 $ — $ 1,779 |
New Accounting Standards New Ac
New Accounting Standards New Accounting Standards (Details) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Adjustments for New Accounting Pronouncement [Member] | |
Long-term Debt | $ 56 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 18, 2015 | Aug. 06, 2015 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 2,390 | $ 2,384 | ||||||
Tranche B Loans | Line of Credit | Bridge Loan | ||||||||
Business Acquisition [Line Items] | ||||||||
Maximum borrowing capacity | $ 3,000 | |||||||
Scenario, Forecast | OCI's Natgasoline Project | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership interest (as a percent) | 50.00% | 45.00% | ||||||
CF Fertilisers UK | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, percentage of voting interests acquired | 50.00% | |||||||
Business combination, step acquisition, initial percentage ownership | 50.00% | |||||||
Cash and equivalents | $ 19 | |||||||
Receivables | 73 | |||||||
Inventory | 67 | |||||||
Goodwill | 328 | 320 | ||||||
Business combination, consideration transferred | 570 | $ 570 | ||||||
Business combination, finite-lived intangibles | $ 132 | |||||||
Combination Agreement between Company and ENA Business | Scenario, Forecast | New CF | ||||||||
Business Acquisition [Line Items] | ||||||||
Noncash or part noncash acquisition, debt assumed | $ 2,000 | |||||||
Cash consideration expected to be paid upon stock-exchange transaction per definitive agreement | $ 700 | |||||||
Business combination, consideration transferred, equity interests issued and issuable, percentage of fixed ownership | 25.60% | |||||||
Combination Agreement between Company and ENA Business | Scenario, Forecast | New CF | Convertible Debt | Convertible Bonds 3.875% Due 2018 | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest rate (as a percent) | 3.875% | |||||||
Ammonia and Methanol Complex [Member] | OCI's Natgasoline Project | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership interest (as a percent) | 79.88% |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Goodwill | $ 2,390 | $ 2,384 | |
CF Fertilisers UK | |||
Business Acquisition [Line Items] | |||
Business combination, consideration transferred | $ 570 | 570 | |
Fair value of 50% of equity interest already held by the Company | 570 | 570 | |
Total fair value | 1,140 | 1,140 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||
Current assets | 165 | 166 | |
Property, plant and equipment | 898 | 898 | |
Goodwill | 328 | 320 | |
Other assets | 140 | 139 | |
Total assets acquired | 1,531 | 1,523 | |
Current liabilities | 74 | 75 | |
Deferred tax liabilities—noncurrent | 129 | 120 | |
Other liabilities | 188 | 188 | |
Total liabilities assumed | 391 | 383 | |
Total net assets acquired | $ 1,140 | 1,140 | |
Business Combination, Provisional Information, Adjustments [Abstract] | |||
Current Assets | 1 | ||
Property, Plant, and Equipment | 0 | ||
Goodwill | (8) | ||
Other Assets | (1) | ||
Total Assets Acquired | (8) | ||
Current Liabilities | 1 | ||
Deferred Tax Liabilities, Noncurrent | (9) | ||
Total Liabilities Assumed | $ (8) |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) $ / shares in Units, shares in Millions, $ in Millions | Jun. 17, 2015 | Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | |
Net Income (Loss) Available to Common Stockholders, Basic | $ | $ 26 | $ 231 | ||
Basic earnings per common share(1): | ||||
Weighted-average common shares outstanding | 233.2 | 239.7 | [1] | |
Net earnings attributable to common stockholders (in dollars per share) | $ / shares | $ 0.11 | $ 0.96 | [1] | |
Diluted earnings per common share(1): | ||||
Weighted-average common shares outstanding | 233.2 | 239.7 | [1] | |
Dilutive common shares—stock options | 0.3 | 0.9 | ||
Diluted weighted-average shares outstanding | 233.5 | 240.6 | [1] | |
Net earnings attributable to common stockholders diluted (in dollars per share) | $ / shares | $ 0.11 | $ 0.96 | [1] | |
Stock split, conversion ratio | 5 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4.2 | 0.8 | ||
Retained Earnings | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ | $ 26 | $ 231 | ||
[1] | Share and per share amounts have been retroactively restated for the prior period to reflect the five-for-one split of the Company’s common stock effected in the form of a stock dividend that was distributed on June 17, 2015. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 269 | $ 286 |
Raw materials, spare parts and supplies | 35 | 35 |
Total inventories | $ 304 | $ 321 |
Property, Plant and Equipment45
Property, Plant and Equipment-Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment-Net | |||
Gross property plant and equipment | $ 11,991 | $ 11,313 | |
Less: Accumulated depreciation and amortization | 2,939 | 2,774 | |
Net property, plant and equipment | 9,052 | 8,539 | |
Construction in progress expenditures incurred but not yet paid | 515 | $ 543 | |
Accrued expansion project costs | 463 | 471 | |
Cost of Goods and Services Sold, Depreciation and Amortization | 140 | 103 | |
Land | |||
Property, Plant and Equipment-Net | |||
Gross property plant and equipment | 68 | 68 | |
Machinery and equipment | |||
Property, Plant and Equipment-Net | |||
Gross property plant and equipment | 7,757 | 7,348 | |
Changes in plant turnaround activity | |||
Balance at the beginning of the period | 220 | 153 | |
Additions | 10 | 27 | |
Depreciation | (22) | (14) | |
Effect of exchange rate changes | 3 | (2) | |
Balance at the end of the period | 211 | $ 164 | |
Buildings and improvements | |||
Property, Plant and Equipment-Net | |||
Gross property plant and equipment | 335 | 271 | |
Construction in progress | |||
Property, Plant and Equipment-Net | |||
Gross property plant and equipment | $ 3,831 | $ 3,626 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Jul. 31, 2015 | |
Goodwill | ||
Goodwill, Beginning Balance | $ 2,390 | |
Effect of exchange rate changes | (6) | |
Goodwill, Ending Balance | 2,384 | |
CF Fertilisers UK | ||
Goodwill | ||
Goodwill, Beginning Balance | 320 | |
Business acquisition, percentage of voting interests acquired | 50.00% | |
Ammonia | ||
Goodwill | ||
Goodwill, Beginning Balance | 587 | |
Effect of exchange rate changes | 1 | |
Goodwill, Ending Balance | 588 | |
Granular Urea | ||
Goodwill | ||
Goodwill, Beginning Balance | 828 | |
Effect of exchange rate changes | 1 | |
Goodwill, Ending Balance | 829 | |
UAN | ||
Goodwill | ||
Goodwill, Beginning Balance | 576 | |
Effect of exchange rate changes | 0 | |
Goodwill, Ending Balance | 576 | |
AN | ||
Goodwill | ||
Goodwill, Beginning Balance | 324 | |
Effect of exchange rate changes | (7) | |
Goodwill, Ending Balance | 317 | |
Other | ||
Goodwill | ||
Goodwill, Beginning Balance | 75 | |
Effect of exchange rate changes | (1) | |
Goodwill, Ending Balance | $ 74 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Jul. 31, 2015 | |
Identifiable intangibles | ||||
Gross Carrying Amount | $ 181 | $ 185 | ||
Accumulated Amortization | (31) | (29) | ||
Net | $ 150 | 156 | ||
Finite-lived intangible asset, useful life | 20 years | |||
Amortization expense | $ 2 | $ 6 | ||
Total estimated amortization expense for the five succeeding fiscal years | ||||
Remainder of 2016 | 7 | |||
2,017 | 9 | |||
2,018 | 9 | |||
2,019 | 9 | |||
2,020 | 9 | |||
2,021 | 9 | |||
CF Fertilisers UK | ||||
Identifiable intangibles | ||||
Business acquisition, percentage of voting interests acquired | 50.00% | |||
Business combination, finite-lived intangibles | $ 132 | |||
Customer relationships | ||||
Identifiable intangibles | ||||
Gross Carrying Amount | 137 | 140 | ||
Accumulated Amortization | (20) | (18) | ||
Net | 117 | 122 | ||
Trademarks | ||||
Identifiable intangibles | ||||
Gross Carrying Amount | 10 | 10 | ||
Accumulated Amortization | (10) | (10) | ||
Net | 0 | 0 | ||
Trade names | ||||
Identifiable intangibles | ||||
Gross Carrying Amount | 34 | 35 | ||
Accumulated Amortization | (1) | (1) | ||
Net | $ 33 | $ 34 |
Equity Method Investments-Narra
Equity Method Investments-Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Jun. 30, 2016 | Jul. 31, 2015 | Jun. 30, 2015 | |
Operating equity method investments | Maximum | Property, plant and equipment | |||||||
Equity method investments | |||||||
Number of years that the increased basis for property, plant and equipment and identifiable intangibles will be amortized | 18 years | ||||||
Operating equity method investments | Maximum | Gas contract | |||||||
Equity method investments | |||||||
Number of years that the increased basis for property, plant and equipment and identifiable intangibles will be amortized | 3 years | ||||||
KEYTRADE AG | Non-operating equity method investments | |||||||
Equity method investments | |||||||
Ownership interest (as a percent) | 50.00% | ||||||
Point Lisas Nitrogen Limited (PLNL) | Operating equity method investments | |||||||
Equity method investments | |||||||
Unrecorded unconditional purchase obligation, percent | 50.00% | ||||||
Ownership interest (as a percent) | 50.00% | ||||||
Carrying value of investments in excess of the entity's share of the affiliates' book value | $ 214 | ||||||
Obligation to purchase ammonia (as a percent) | 50% of the ammonia produced by PLNL | ||||||
Purchases of ammonia from PLNL | $ 16 | $ 30 | |||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 62 | ||||||
CF Fertilisers UK | |||||||
Equity method investments | |||||||
Business acquisition, percentage of voting interests acquired | 50.00% | ||||||
Scenario, Forecast | OCI's Natgasoline Project | |||||||
Equity method investments | |||||||
Ownership interest (as a percent) | 50.00% | 45.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Investment | ||
Cash | $ 136 | $ 71 |
Cash equivalents: | ||
Cash and cash equivalents, adjusted cost | 2,689 | 286 |
Cash and cash equivalents, fair value disclosure | 2,689 | 286 |
Restricted Cash, adjusted cost | 12 | 23 |
Restricted Cash, Fair Value | 12 | 23 |
U.S. and Canadian government obligations | ||
Cash equivalents: | ||
Cash equivalents, adjusted cost | 2,533 | 190 |
Cash equivalents, fair value | 2,533 | 190 |
Other debt securities | ||
Cash equivalents: | ||
Cash equivalents, adjusted cost | 20 | 25 |
Cash equivalents, fair value | 20 | 25 |
Nonqualified employee benefit trusts | ||
Cash equivalents: | ||
Available-for-sale securities, adjusted cost | 18 | 18 |
Available-for-sale securities, gross unrealized gain | 1 | 1 |
Available-for-sale securities, fair value | $ 19 | $ 19 |
Fair Value Measurements (Deta50
Fair Value Measurements (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2016 | |
Assets and liabilities measured at fair value on a recurring basis | ||
Restricted cash | $ 23 | $ 12 |
Long-term debt | 5,537 | 5,539 |
Fair value of long-term debt, including current portion | 5,456 | 5,614 |
Recurring basis | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 215 | 2,553 |
Restricted cash | 23 | 12 |
Derivative assets | 3 | |
Nonqualified employee benefit trusts | 19 | 19 |
Derivative liabilities | (211) | (232) |
Recurring basis | Quoted Prices in Active Markets (Level 1) | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 215 | 2,553 |
Restricted cash | 23 | 12 |
Derivative assets | 0 | |
Nonqualified employee benefit trusts | 19 | 19 |
Derivative liabilities | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Derivative assets | 3 | |
Nonqualified employee benefit trusts | 0 | 0 |
Derivative liabilities | (211) | (232) |
Recurring basis | Fair Value, Inputs (Level 3) | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Derivative assets | 0 | |
Nonqualified employee benefit trusts | 0 | 0 |
Derivative liabilities | 0 | $ 0 |
Point Lisas Nitrogen Limited (PLNL) | Operating equity method investments | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 62 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Jul. 31, 2015 | |
Differences in the expected income tax provision based on statutory rates applied to earnings before income taxes and the income tax provision reflected in the consolidated statements of operations | |||
Income tax provision | $ 15 | $ 113 | |
Pre-tax income | $ 62 | $ 334 | |
Differences in the expected income tax provision based on statutory rates applied to earnings before income taxes and the income tax provision reflected in the consolidated statements of operations (as a percent) | |||
Effective income tax rate (as a percent) | 24.70% | 33.80% | |
CF Fertilisers UK | |||
Business Acquisition [Line Items] | |||
Business combination, step acquisition, initial percentage ownership | 50.00% |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest Expense [Abstract] | ||
Interest on borrowings(1) | $ 76 | $ 63 |
Fees on financing agreements(1) | 4 | 1 |
Interest on tax liabilities | 1 | 1 |
Interest capitalized | 43 | 31 |
Interest expense | $ 38 | $ 34 |
Financing Agreements (Details)
Financing Agreements (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instruments | ||
Net long-term debt | $ 5,539,000,000 | $ 5,537,000,000 |
CF Industries | ||
Financing agreements | ||
Long-term Debt, Gross | 5,600,000,000 | 5,600,000,000 |
Debt Instruments | ||
Long-term debt | 5,539,000,000 | 5,537,000,000 |
Unamortized Debt Issuance Expense | 54,000,000 | 56,000,000 |
Debt Instrument, Unamortized Discount | $ 7,000,000 | $ 7,000,000 |
CF Industries | Senior Notes | Unsecured senior notes 6.875% due 2018 | ||
Financing agreements | ||
Debt Instrument, Interest Rate, Effective Percentage | 7.344% | 7.344% |
Long-term Debt, Gross | $ 800,000,000 | $ 800,000,000 |
Debt Instruments | ||
Long-term debt | $ 793,000,000 | $ 792,000,000 |
Interest rate (as a percent) | 6.875% | 6.875% |
CF Industries | Senior Notes | Unsecured senior notes 7.125% due 2020 | ||
Financing agreements | ||
Debt Instrument, Interest Rate, Effective Percentage | 7.529% | 7.529% |
Long-term Debt, Gross | $ 800,000,000 | $ 800,000,000 |
Debt Instruments | ||
Long-term debt | $ 789,000,000 | $ 788,000,000 |
Interest rate (as a percent) | 7.125% | 7.125% |
CF Industries | Senior Notes | Senior notes 3.450% due 2023 | ||
Financing agreements | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.562% | 3.562% |
Long-term Debt, Gross | $ 750,000,000 | $ 750,000,000 |
Debt Instruments | ||
Long-term debt | $ 745,000,000 | $ 745,000,000 |
Interest rate (as a percent) | 3.45% | 3.45% |
CF Industries | Senior Notes | Senior notes 5.150% due 2034 | ||
Financing agreements | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.279% | 5.279% |
Long-term Debt, Gross | $ 750,000,000 | $ 750,000,000 |
Debt Instruments | ||
Long-term debt | $ 739,000,000 | $ 739,000,000 |
Interest rate (as a percent) | 5.15% | 5.15% |
CF Industries | Senior Notes | Senior notes 4.950% due 2043 | ||
Financing agreements | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.0307% | 5.0307% |
Long-term Debt, Gross | $ 750,000,000 | $ 750,000,000 |
Debt Instruments | ||
Long-term debt | $ 741,000,000 | $ 741,000,000 |
Interest rate (as a percent) | 4.95% | 4.95% |
CF Industries | Senior Notes | Senior notes 5.375% due 2044 | ||
Financing agreements | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.465% | 5.465% |
Long-term Debt, Gross | $ 750,000,000 | $ 750,000,000 |
Debt Instruments | ||
Long-term debt | $ 740,000,000 | $ 740,000,000 |
Interest rate (as a percent) | 5.375% | 5.375% |
CF Industries | Senior Notes | Senior Notes 4.490% Due October 15, 2022 | ||
Financing agreements | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.626% | 4.626% |
Long-term Debt, Gross | $ 250,000,000 | $ 250,000,000 |
Debt Instruments | ||
Long-term debt | $ 248,000,000 | $ 248,000,000 |
Interest rate (as a percent) | 4.49% | 4.49% |
CF Industries | Senior Notes | Senior Notes 4.93% Due October 15, 2025 | ||
Financing agreements | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.034% | 5.034% |
Long-term Debt, Gross | $ 500,000,000 | $ 500,000,000 |
Debt Instruments | ||
Long-term debt | $ 496,000,000 | $ 496,000,000 |
Interest rate (as a percent) | 4.93% | 4.93% |
CF Industries | Senior Notes | Senior Notes 5.03% Due October 15, 2027 | ||
Financing agreements | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.121% | 5.121% |
Long-term Debt, Gross | $ 250,000,000 | $ 250,000,000 |
Debt Instruments | ||
Long-term debt | $ 248,000,000 | $ 248,000,000 |
Interest rate (as a percent) | 5.03% | 5.03% |
Financing Agreements Financing
Financing Agreements Financing Agreements - Narrative (Details) | Sep. 24, 2015 | Sep. 18, 2015USD ($)covenant | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Credit Agreement | Line of Credit | Revolving Credit Facility | ||||
Financing agreements | ||||
Threshold of Potential Guarantor Obligation | $ 500,000,000 | |||
Bridge Credit Agreement | Line of Credit | Bridge Loan | ||||
Financing agreements | ||||
Maturity period | 364 days | |||
Line of Credit, Rate Increase Remeasurement Period | 90 days | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |||
Threshold of Potential Guarantor Obligation | $ 500,000,000 | |||
Tranche A Loans | Line of Credit | Bridge Loan | ||||
Financing agreements | ||||
Maximum borrowing capacity | 1,000,000,000 | |||
Tranche B Loans | Line of Credit | Bridge Loan | ||||
Financing agreements | ||||
Maximum borrowing capacity | 3,000,000,000 | |||
Line of credit facility, capacity available for specific purpose | $ 1,300,000,000 | |||
Line of Credit, Period After Initial Funding | 270 days | |||
Tranche B Loans | Minimum | Line of Credit | Bridge Loan | ||||
Financing agreements | ||||
Line of Credit, Duration Fee, Percent | 0.50% | |||
Tranche B Loans | Maximum | Line of Credit | Bridge Loan | ||||
Financing agreements | ||||
Line of Credit, Duration Fee, Percent | 1.00% | |||
CF Industries | ||||
Financing agreements | ||||
Debt Instrument, Unamortized Discount | $ 7,000,000 | $ 7,000,000 | ||
Unamortized Debt Issuance Expense | 54,000,000 | 56,000,000 | ||
CF Industries | Credit Agreement | ||||
Financing agreements | ||||
Maximum borrowing capacity | $ 2,000,000,000 | |||
Available credit | 1,995,000,000 | |||
Outstanding letters of credit | 5,000,000 | |||
Long-term Line of Credit | 0 | $ 0 | ||
Line of credit facility, maximum amount outstanding during period | $ 150,000,000 | |||
Debt instrument, weighted average interest rate for borrowings during period | 1.85% | |||
Ratio of Indebtedness to Net Capital | 3.75 | |||
CF Industries | Credit Agreement | Line of Credit | Revolving Credit Facility | ||||
Financing agreements | ||||
Debt Instrument, Covenant Compliance, Number of Covenants | covenant | 2 | |||
Ratio of Interest Coverage | 2.75 | |||
CF Industries | Private Placement Senior Notes | Senior Notes | ||||
Financing agreements | ||||
Redemption price of debt as percentage of principal amount | 100.00% | |||
Debt instrument, percentage of principal required for payment of outstanding debt in full | 50.00% | |||
CF Industries | Private Placement Senior Notes | Senior Notes | Minimum | ||||
Financing agreements | ||||
Debt instrument, redemption price, percentage of principal amount redeemed | 5.00% | |||
CF Industries | Private Placement Senior Notes | Senior Notes | Maximum | ||||
Financing agreements | ||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||
CF Industries | Senior Notes 4.490% Due October 15, 2022 | Senior Notes | ||||
Financing agreements | ||||
Interest rate (as a percent) | 4.49% | 4.49% | ||
CF Industries | Senior Notes 4.93% Due October 15, 2025 | Senior Notes | ||||
Financing agreements | ||||
Interest rate (as a percent) | 4.93% | 4.93% | ||
CF Industries | Senior Notes 5.03% Due October 15, 2027 | Senior Notes | ||||
Financing agreements | ||||
Interest rate (as a percent) | 5.03% | 5.03% | ||
CF Industries | Public Senior Notes | Senior Notes | ||||
Financing agreements | ||||
Redemption price of debt as percentage of principal amount | 101.00% |
Derivative Financial Instrume55
Derivative Financial Instruments (Details) € in Millions, MMBTU in Millions | 3 Months Ended | |||||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016EUR (€)MMBTU | Mar. 31, 2016USD ($)MMBTU | Dec. 31, 2015EUR (€)MMBTU | Dec. 31, 2015USD ($)MMBTU | |
Fair values of derivatives on consolidated balance sheets | ||||||
Open derivative contracts for natural gas (in MMBtus) | MMBTU | 370.7 | 370.7 | 431.5 | 431.5 | ||
Percentage of natural gas consumption covered by derivatives | 85.00% | |||||
Derivative, net liability position, aggregate fair value | $ 232,000,000 | $ 211,000,000 | ||||
Cash collateral on deposit with derivative counterparties | 0 | 0 | ||||
Gain (loss) on sale of derivatives | $ (56,000,000) | $ (43,000,000) | ||||
Net of tax | (74,000,000) | (27,000,000) | ||||
Derivatives not designated as cash flow hedges | ||||||
Fair values of derivatives on consolidated balance sheets | ||||||
Cash collateral on deposit with derivative counterparties | 0 | $ 0 | ||||
Unrealized gain (loss) on derivatives | (18,000,000) | 16,000,000 | ||||
Derivatives not designated as cash flow hedges | Natural gas derivatives | Cost of Sales | ||||||
Fair values of derivatives on consolidated balance sheets | ||||||
Unrealized gain (loss) on derivatives | (21,000,000) | 28,000,000 | ||||
Derivatives not designated as cash flow hedges | Foreign exchange contracts | ||||||
Fair values of derivatives on consolidated balance sheets | ||||||
Notional amount of derivative | € 66 | $ 0 | € 89 | |||
Derivatives not designated as cash flow hedges | Foreign exchange contracts | Other operating - net | ||||||
Fair values of derivatives on consolidated balance sheets | ||||||
Unrealized gain (loss) on derivatives | 3,000,000 | $ (12,000,000) | ||||
Derivatives designated as cash flow hedges | Foreign exchange contracts | ||||||
Fair values of derivatives on consolidated balance sheets | ||||||
Unrealized gain (loss) on cash flow hedges, pretax, in AOCI | $ 7,000,000 |
Derivative Financial Instrume56
Derivative Financial Instruments (Details 2) - Derivatives not designated as cash flow hedges - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair values of derivatives on consolidated balance sheets | ||
Other current assets | $ 3 | $ 0 |
Other assets | 0 | 0 |
Asset Derivative | 3 | 0 |
Other current liabilities | (162) | (130) |
Other liabilities | (70) | (81) |
Liability derivative | (232) | (211) |
Foreign exchange contracts | ||
Fair values of derivatives on consolidated balance sheets | ||
Other current assets | 3 | 0 |
Other assets | 0 | 0 |
Other current liabilities | 0 | 0 |
Other liabilities | 0 | 0 |
Natural gas derivatives | ||
Fair values of derivatives on consolidated balance sheets | ||
Other current assets | 0 | 0 |
Other assets | 0 | 0 |
Other current liabilities | (162) | (130) |
Other liabilities | $ (70) | $ (81) |
Derivative Financial Instrume57
Derivative Financial Instruments (Details 3) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Gross amounts not offset in consolidated balance sheets | ||
Cash collateral on deposit with derivative counterparties | $ 0 | $ 0 |
Derivatives not designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 3,000,000 | 0 |
Derivative Liability | 232,000,000 | 211,000,000 |
Gross and net amounts presented in consolidated balance sheets, net assets | (229,000,000) | (211,000,000) |
Gross amounts not offset in consolidated balance sheets | ||
Derivative, collateral, obligation to return securities | 3,000,000 | 0 |
Derivative liability, not subject to master netting arrangement deduction | 3,000,000 | 0 |
Net derivative (asset) liability, not subject to master netting arrangement deduction | 0 | 0 |
Derivative, collateral, obligation to return cash | 0 | 0 |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Derivative, collateral, obligation to return cash (right to reclaim cash) | 0 | 0 |
Derivative asset, fair value, offset against collateral, net of not subject to master netting arrangement, policy election | 0 | 0 |
Derivative liability, fair value, offset against collateral, net of not subject to master netting arrangement, policy election | 229,000,000 | 211,000,000 |
Net derivative asset (liability), fair value, offset against collateral, net of not subject to master netting arrangement, policy election | $ (229,000,000) | $ (211,000,000) |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) T in Thousands, $ in Millions | 3 Months Ended | |||
Mar. 31, 2016USD ($)T | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Noncontrolling interest | ||||
Distributions Payable to Minority Interest | $ 0 | $ 0 | $ 0 | $ 0 |
Issuance from Noncontrolling Interests | 2,800 | 0 | ||
CF Industries Nitrogen, LLC | ||||
Noncontrolling interest | ||||
Distributions Payable to Minority Interest | 0 | 0 | ||
Issuance from Noncontrolling Interests | $ 2,800 | |||
Maximum Annual Granular Urea Tons Eligible for Purchase | T | 1,100 | |||
Maximum Annual UAN Tons Eligible for Purchase | T | 580 | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 8 | |||
TNCLP | ||||
Noncontrolling interest | ||||
Distributions Payable to Minority Interest | $ 0 | 0 | $ 0 | $ 0 |
Percentage of aggregate ownership held by entity through general and limited partnership | 75.30% | |||
Percentage of ownership interest held by outside investors | 24.70% | |||
Earnings attributable to general partnership interest in excess of the threshold levels | $ 10 | $ 20 | ||
Average trading days for which purchase price is greater | 20 days | |||
Number of days before announcing purchase price | 5 days | |||
Period within which highest price is paid for any unit preceding the date of purchase is announced | 90 days | |||
TNCLP | Minimum | ||||
Noncontrolling interest | ||||
Notice period for making decision to purchase the outstanding units | 30 days | |||
TNCLP | Maximum | ||||
Noncontrolling interest | ||||
Percentage of ownership allowing majority owner to acquire outstanding units | 25.00% | |||
Notice period for making decision to purchase the outstanding units | 60 days |
Noncontrolling Interests (Det59
Noncontrolling Interests (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Noncontrolling interest | ||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 2,792 | $ 0 |
Noncontrolling interest | ||
Beginning balance | 352 | 363 |
Earnings attributable to noncontrolling interests | 21 | 5 |
Declaration of distributions payable | (13) | (11) |
Ending balance | 3,152 | 357 |
Distributions payable to noncontrolling interests: | ||
Beginning balance | 0 | 0 |
Declaration of distributions payable | 13 | 11 |
Distributions to noncontrolling interest | (13) | 11 |
Ending balance | 0 | 0 |
CF Industries Nitrogen, LLC | ||
Noncontrolling interest | ||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 2,792 | |
Noncontrolling interest | ||
Beginning balance | 0 | |
Earnings attributable to noncontrolling interests | 17 | |
Declaration of distributions payable | 0 | |
Ending balance | 2,809 | |
Distributions payable to noncontrolling interests: | ||
Beginning balance | 0 | |
Declaration of distributions payable | 0 | |
Distributions to noncontrolling interest | 0 | |
Ending balance | 0 | |
TNCLP | ||
Noncontrolling interest | ||
Beginning balance | 352 | 363 |
Earnings attributable to noncontrolling interests | 4 | 5 |
Declaration of distributions payable | (13) | (11) |
Ending balance | 343 | 357 |
Distributions payable to noncontrolling interests: | ||
Beginning balance | 0 | 0 |
Declaration of distributions payable | 13 | 11 |
Distributions to noncontrolling interest | (13) | (11) |
Ending balance | $ 0 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | $ (250) | $ (160) |
Reclassification to earnings | 2 | |
Effect of exchange rate changes and deferred taxes | 48 | (82) |
Balance at the end of the period | (202) | (240) |
Foreign Currency Translation Adjustment | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | (198) | (41) |
Reclassification to earnings | 0 | |
Effect of exchange rate changes and deferred taxes | 48 | (86) |
Balance at the end of the period | (150) | (127) |
Unrealized Gain (Loss) on Securities | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | 1 | 1 |
Reclassification to earnings | 0 | |
Effect of exchange rate changes and deferred taxes | 0 | 0 |
Balance at the end of the period | 1 | 1 |
Unrealized Gain (Loss) on Derivatives | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | 5 | 5 |
Reclassification to earnings | 0 | |
Effect of exchange rate changes and deferred taxes | 0 | 0 |
Balance at the end of the period | 5 | 5 |
Defined Benefit Plans | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | (58) | (125) |
Reclassification to earnings | 2 | |
Effect of exchange rate changes and deferred taxes | 0 | 4 |
Balance at the end of the period | $ (58) | $ (119) |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassification out of AOCI | ||
Tax effect | $ (15) | $ (113) |
Net earnings | 47 | 236 |
Amount Reclassified from AOCI | ||
Reclassification out of AOCI | ||
Net earnings | 0 | 1 |
Amount Reclassified from AOCI | Defined Benefit Plans | ||
Reclassification out of AOCI | ||
Amortization of prior service cost | 0 | 0 |
Amortization of net loss | 0 | 2 |
Total before tax | 0 | 2 |
Tax effect | 0 | (1) |
Net earnings | $ 0 | $ 1 |
Stockholders' Equity (Details 3
Stockholders' Equity (Details 3) shares in Millions | Jun. 17, 2015 | Mar. 31, 2015USD ($)shares | Mar. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Aug. 06, 2014USD ($) |
Equity, Class of Treasury Stock [Line Items] | |||||
Purchase of treasury stock (in dollars) | $ 237,000,000 | ||||
Treasury stock (in dollars) | $ 153,000,000 | $ 153,000,000 | |||
Stock split, conversion ratio | 5 | ||||
2014 Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Share repurchase authorized | $ 1,000,000,000 | ||||
Number of shares repurchased (in shares) | shares | 4.1 | ||||
Purchase of treasury stock (in dollars) | $ 237,000,000 | ||||
Accumulated number of shares repurchased (in shares) | shares | 15.9 | ||||
Treasury stock (in dollars) | $ 900,000,000 |
Contingencies (Details)
Contingencies (Details) - Pending Litigation | Apr. 17, 2015Insurance_companyPeoplePlaintiffEntity | Apr. 17, 2013People | Mar. 31, 2016Litigation_case |
Loss Contingencies [Line Items] | |||
Number of people killed | 15 | ||
Number of people injured | 200 | ||
Number of plaintiffs | Plaintiff | 400 | ||
Number of entities that filed claims | Entity | 9 | ||
Number of people that filed claims | 325 | ||
Number of insurance companies that filed claims | Insurance_company | 80 | ||
Loss Contingency, Number of Litigation Cases Scheduled for Trial | Litigation_case | 34 |
Segment Disclosures (Details)
Segment Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment data | ||
Net sales | $ 1,004 | $ 954 |
Cost of sales | 787 | 538 |
Gross margin | 217 | 416 |
Total other operating costs and expenses | 120 | 58 |
Equity in earnings of operating affiliates | 0 | 9 |
Operating earnings | 97 | 367 |
Operating Segments | Ammonia | ||
Segment data | ||
Net sales | 267 | 288 |
Cost of sales | 204 | 168 |
Gross margin | 63 | 120 |
Operating Segments | Granular Urea | ||
Segment data | ||
Net sales | 235 | 212 |
Cost of sales | 175 | 100 |
Gross margin | 60 | 112 |
Operating Segments | UAN | ||
Segment data | ||
Net sales | 309 | 356 |
Cost of sales | 231 | 197 |
Gross margin | 78 | 159 |
Operating Segments | AN | ||
Segment data | ||
Net sales | 125 | 51 |
Cost of sales | 112 | 43 |
Gross margin | 13 | 8 |
Operating Segments | Other | ||
Segment data | ||
Net sales | 68 | 47 |
Cost of sales | 65 | 30 |
Gross margin | $ 3 | $ 17 |
Condensed Consolidating Finan65
Condensed Consolidating Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed, Consolidating Statement of Operations | ||
Net sales | $ 1,004 | $ 954 |
Cost of sales | 787 | 538 |
Gross margin | 217 | 416 |
Selling, general and administrative expenses | 45 | 40 |
Transaction costs | 14 | 0 |
Other operating—net | 61 | 18 |
Total other operating costs and expenses | 120 | 58 |
Equity in earnings of operating affiliates | 0 | 9 |
Operating earnings | 97 | 367 |
Interest expense | 38 | 34 |
Interest income | (1) | (1) |
Other non-operating—net | (2) | 0 |
Earnings before income taxes and equity in earnings of non-operating affiliates | 62 | 334 |
Income tax (benefit) provision | 15 | 113 |
Equity in earnings of non-operating affiliates—net of taxes | 0 | 15 |
Net earnings | 47 | 236 |
Less: Net earnings attributable to noncontrolling interests | 21 | 5 |
Net earnings attributable to common stockholders | 26 | 231 |
Reportable legal entities | Parent | ||
Condensed, Consolidating Statement of Operations | ||
Selling, general and administrative expenses | 1 | 1 |
Transaction costs | 10 | |
Other operating—net | (1) | 0 |
Total other operating costs and expenses | 10 | 1 |
Operating earnings | (10) | (1) |
Net earnings of wholly owned subsidiaries | (32) | (231) |
Other non-operating—net | 0 | 0 |
Earnings before income taxes and equity in earnings of non-operating affiliates | 22 | 230 |
Income tax (benefit) provision | (4) | (1) |
Net earnings | 26 | 231 |
Net earnings attributable to common stockholders | 26 | 231 |
Reportable legal entities | CF Industries | ||
Condensed, Consolidating Statement of Operations | ||
Net sales | 145 | 81 |
Cost of sales | 48 | 81 |
Gross margin | 97 | 0 |
Selling, general and administrative expenses | 1 | 0 |
Other operating—net | 1 | (5) |
Total other operating costs and expenses | 2 | (5) |
Operating earnings | 95 | 5 |
Interest expense | 85 | 65 |
Interest income | (17) | 0 |
Net earnings of wholly owned subsidiaries | (14) | (271) |
Other non-operating—net | 0 | 0 |
Earnings before income taxes and equity in earnings of non-operating affiliates | 41 | 211 |
Income tax (benefit) provision | 9 | (20) |
Equity in earnings of non-operating affiliates—net of taxes | 0 | 0 |
Net earnings | 32 | 231 |
Net earnings attributable to common stockholders | 32 | 231 |
Reportable legal entities | Other Subsidiaries | ||
Condensed, Consolidating Statement of Operations | ||
Net sales | 1,037 | 1,004 |
Cost of sales | 917 | 588 |
Gross margin | 120 | 416 |
Selling, general and administrative expenses | 43 | 39 |
Transaction costs | 4 | |
Other operating—net | 61 | 23 |
Total other operating costs and expenses | 108 | 62 |
Equity in earnings of operating affiliates | 0 | 9 |
Operating earnings | 12 | 363 |
Interest expense | (24) | (31) |
Interest income | (7) | (1) |
Other non-operating—net | (2) | 0 |
Earnings before income taxes and equity in earnings of non-operating affiliates | 45 | 395 |
Income tax (benefit) provision | 10 | 134 |
Equity in earnings of non-operating affiliates—net of taxes | 0 | 15 |
Net earnings | 35 | 276 |
Less: Net earnings attributable to noncontrolling interests | 21 | 5 |
Net earnings attributable to common stockholders | 14 | 271 |
Eliminations | ||
Condensed, Consolidating Statement of Operations | ||
Net sales | (178) | (131) |
Cost of sales | (178) | (131) |
Gross margin | 0 | |
Selling, general and administrative expenses | 0 | |
Total other operating costs and expenses | 0 | |
Interest expense | (23) | 0 |
Interest income | 23 | 0 |
Net earnings of wholly owned subsidiaries | 46 | 502 |
Earnings before income taxes and equity in earnings of non-operating affiliates | (46) | (502) |
Net earnings | (46) | (502) |
Net earnings attributable to common stockholders | $ (46) | $ (502) |
Condensed Consolidating Finan66
Condensed Consolidating Financial Statements (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed, Consolidating Statement of Comprehensive Income | ||
Net earnings | $ 47 | $ 236 |
Other comprehensive income (losses) | 48 | (80) |
Comprehensive income | 95 | 156 |
Less: Comprehensive income attributable to noncontrolling interests | 21 | 5 |
Comprehensive income attributable to common stockholders | 74 | 151 |
Reportable legal entities | Parent | ||
Condensed, Consolidating Statement of Comprehensive Income | ||
Net earnings | 26 | 231 |
Other comprehensive income (losses) | 48 | (80) |
Comprehensive income | 74 | 151 |
Comprehensive income attributable to common stockholders | 74 | 151 |
Reportable legal entities | CF Industries | ||
Condensed, Consolidating Statement of Comprehensive Income | ||
Net earnings | 32 | 231 |
Other comprehensive income (losses) | 48 | (80) |
Comprehensive income | 80 | 151 |
Comprehensive income attributable to common stockholders | 80 | 151 |
Reportable legal entities | Other Subsidiaries | ||
Condensed, Consolidating Statement of Comprehensive Income | ||
Net earnings | 35 | 276 |
Other comprehensive income (losses) | 47 | (81) |
Comprehensive income | 82 | 195 |
Less: Comprehensive income attributable to noncontrolling interests | 21 | 5 |
Comprehensive income attributable to common stockholders | 61 | 190 |
Eliminations | ||
Condensed, Consolidating Statement of Comprehensive Income | ||
Net earnings | (46) | (502) |
Other comprehensive income (losses) | (95) | 161 |
Comprehensive income | (141) | (341) |
Comprehensive income attributable to common stockholders | $ (141) | $ (341) |
Condensed Consolidating Finan67
Condensed Consolidating Financial Statements (Details 3) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 2,689 | $ 286 | $ 1,779 | $ 1,997 |
Restricted cash | 12 | 23 | ||
Accounts and notes receivable—net | 262 | 267 | ||
Inventories | 304 | 321 | ||
Prepaid income taxes | 207 | 185 | ||
Other current assets | 46 | 45 | ||
Total current assets | 3,520 | 1,127 | ||
Property, plant and equipment—net | 9,052 | 8,539 | ||
Investments in affiliates | 298 | 298 | ||
Due from affiliates | 0 | |||
Goodwill | 2,384 | 2,390 | ||
Other assets | 327 | 329 | ||
Total assets | 15,581 | 12,683 | ||
Current liabilities: | ||||
Accounts and notes payable and accrued expenses | 880 | 918 | ||
Income taxes payable | 4 | 5 | ||
Customer advances | 227 | 162 | ||
Other current liabilities | 162 | 130 | ||
Total current liabilities | 1,273 | 1,215 | ||
Long-term debt | 5,539 | 5,537 | ||
Deferred income taxes | 955 | 916 | ||
Due to affiliates | 0 | |||
Other liabilities | 620 | 628 | ||
Stockholders' equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 2 | 2 | ||
Paid-in capital | 1,381 | 1,378 | ||
Retained earnings | 3,014 | 3,058 | ||
Treasury stock | (153) | (153) | ||
Accumulated other comprehensive income (loss) | (202) | (250) | (240) | (160) |
Total stockholders' equity | 4,042 | 4,035 | ||
Noncontrolling interests | 3,152 | 352 | 357 | 363 |
Total equity | 7,194 | 4,387 | 4,419 | 4,572 |
Total liabilities and equity | 15,581 | 12,683 | ||
Reportable legal entities | Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 3 | 1 | 0 | 0 |
Accounts and notes receivable—net | 0 | 1 | ||
Prepaid income taxes | 0 | 0 | ||
Total current assets | 3 | 2 | ||
Property, plant and equipment—net | 4 | |||
Investments in affiliates | 4,312 | 4,303 | ||
Due from affiliates | 571 | 571 | ||
Goodwill | 0 | |||
Total assets | 4,890 | 4,876 | ||
Current liabilities: | ||||
Accounts and notes payable and accrued expenses | 848 | 841 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 848 | 841 | ||
Stockholders' equity: | ||||
Preferred stock | 0 | |||
Common stock | 2 | 2 | ||
Paid-in capital | 1,381 | 1,378 | ||
Retained earnings | 3,014 | 3,058 | ||
Treasury stock | (153) | (153) | ||
Accumulated other comprehensive income (loss) | (202) | (250) | ||
Total stockholders' equity | 4,042 | 4,035 | ||
Noncontrolling interests | 0 | |||
Total equity | 4,042 | 4,035 | ||
Total liabilities and equity | 4,890 | 4,876 | ||
Reportable legal entities | CF Industries | ||||
Current assets: | ||||
Cash and cash equivalents | 1 | 0 | 59 | 106 |
Accounts and notes receivable—net | 1,422 | 2,987 | ||
Inventories | 0 | 0 | ||
Prepaid income taxes | 0 | 0 | ||
Other current assets | 24 | 24 | ||
Total current assets | 1,447 | 3,011 | ||
Property, plant and equipment—net | 0 | |||
Investments in affiliates | 9,711 | 8,148 | ||
Due from affiliates | 0 | |||
Other assets | 18 | 19 | ||
Total assets | 11,176 | 11,178 | ||
Current liabilities: | ||||
Accounts and notes payable and accrued expenses | 624 | 648 | ||
Income taxes payable | 0 | 0 | ||
Customer advances | 0 | |||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 624 | 648 | ||
Long-term debt | 5,539 | 5,537 | ||
Deferred income taxes | 62 | 52 | ||
Due to affiliates | 573 | 573 | ||
Other liabilities | 65 | 66 | ||
Stockholders' equity: | ||||
Common stock | 0 | |||
Paid-in capital | (13) | (13) | ||
Retained earnings | 4,528 | 4,565 | ||
Treasury stock | 0 | |||
Accumulated other comprehensive income (loss) | (202) | (250) | ||
Total stockholders' equity | 4,313 | 4,302 | ||
Noncontrolling interests | 0 | |||
Total equity | 4,313 | 4,302 | ||
Total liabilities and equity | 11,176 | 11,178 | ||
Reportable legal entities | Other Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 2,685 | 285 | 1,720 | 1,891 |
Restricted cash | 12 | 23 | ||
Accounts and notes receivable—net | 1,593 | 1,565 | ||
Inventories | 304 | 321 | ||
Prepaid income taxes | 207 | 185 | ||
Other current assets | 22 | 21 | ||
Total current assets | 4,823 | 2,400 | ||
Property, plant and equipment—net | 9,048 | 8,539 | ||
Investments in affiliates | 298 | 298 | ||
Due from affiliates | 2 | 2 | ||
Goodwill | 2,384 | 2,390 | ||
Other assets | 309 | 310 | ||
Total assets | 16,864 | 13,939 | ||
Current liabilities: | ||||
Accounts and notes payable and accrued expenses | 2,161 | 3,715 | ||
Income taxes payable | 4 | 5 | ||
Customer advances | 227 | 162 | ||
Other current liabilities | 162 | 130 | ||
Total current liabilities | 2,554 | 4,012 | ||
Long-term debt | 0 | |||
Deferred income taxes | 893 | 864 | ||
Other liabilities | 555 | 562 | ||
Stockholders' equity: | ||||
Preferred stock | 16 | 17 | ||
Common stock | 1 | 1 | ||
Paid-in capital | 9,937 | 8,365 | ||
Retained earnings | (41) | 16 | ||
Treasury stock | 0 | |||
Accumulated other comprehensive income (loss) | (203) | (250) | ||
Total stockholders' equity | 9,710 | 8,149 | ||
Noncontrolling interests | 3,152 | 352 | ||
Total equity | 12,862 | 8,501 | ||
Total liabilities and equity | 16,864 | 13,939 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts and notes receivable—net | (2,753) | (4,286) | ||
Inventories | 0 | |||
Prepaid income taxes | 0 | 0 | ||
Total current assets | (2,753) | (4,286) | ||
Investments in affiliates | (14,023) | (12,451) | ||
Due from affiliates | (573) | (573) | ||
Goodwill | 0 | |||
Total assets | (17,349) | (17,310) | ||
Current liabilities: | ||||
Accounts and notes payable and accrued expenses | (2,753) | (4,286) | ||
Income taxes payable | 0 | 0 | ||
Customer advances | 0 | |||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (2,753) | (4,286) | ||
Long-term debt | 0 | |||
Deferred income taxes | 0 | 0 | ||
Due to affiliates | (573) | (573) | ||
Stockholders' equity: | ||||
Preferred stock | (16) | (17) | ||
Common stock | (1) | (1) | ||
Paid-in capital | (9,924) | (8,352) | ||
Retained earnings | (4,487) | (4,581) | ||
Treasury stock | 0 | |||
Accumulated other comprehensive income (loss) | 405 | 500 | ||
Total stockholders' equity | (14,023) | (12,451) | ||
Noncontrolling interests | 0 | |||
Total equity | (14,023) | (12,451) | ||
Total liabilities and equity | $ (17,349) | $ (17,310) |
Condensed Consolidating Finan68
Condensed Consolidating Financial Statements (Details 4) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities: | ||
Net earnings | $ 47 | $ 236 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 146 | 115 |
Deferred Income Taxes and Tax Credits | 36 | 0 |
Stock-based compensation expense | 4 | 4 |
Excess tax benefit from stock-based compensation | 0 | (1) |
Unrealized loss (gain) on derivatives | 18 | (11) |
Loss on disposal of property, plant and equipment | 3 | 6 |
Undistributed (earnings) loss of affiliates—net | (4) | (18) |
Due to/from affiliates—net | 0 | |
Changes in: | ||
Accounts and notes receivable—net | 4 | 24 |
Inventories | 16 | (68) |
Accrued and prepaid income taxes | (23) | 84 |
Accounts and notes payable and accrued expenses | (6) | (11) |
Customer advances | 65 | 170 |
Other—net | 40 | 1 |
Net cash provided by operating activities | 346 | 531 |
Investing Activities: | ||
Additions to property, plant and equipment | (676) | (445) |
Proceeds from sale of property, plant and equipment | 2 | 3 |
Withdrawals from restricted cash funds | 11 | 23 |
Other—net | 1 | (11) |
Net cash used in investing activities | (662) | (430) |
Financing Activities: | ||
Proceeds from short-term borrowings | 150 | 0 |
Short-term debt—net | 0 | 0 |
Payments of short-term borrowings | (150) | 0 |
Financing fees | 0 | (2) |
Dividends paid on common stock | (70) | (72) |
Dividends to/from affiliates | 0 | 0 |
Issuance from Noncontrolling Interests | 2,800 | 0 |
Distributions to noncontrolling interest | (13) | (11) |
Purchases of treasury stock | 0 | (236) |
Issuances of common stock under employee stock plans | 0 | 6 |
Excess tax benefit from stock-based compensation | 0 | 1 |
Net cash provided by (used in) financing activities | 2,717 | (314) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (5) |
Increase (decrease) in cash and cash equivalents | 2,403 | (218) |
Cash and cash equivalents at beginning of period | 286 | 1,997 |
Cash and cash equivalents at end of period | 2,689 | 1,779 |
Reportable legal entities | Parent | ||
Operating Activities: | ||
Net earnings | 26 | 231 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 0 | 0 |
Deferred Income Taxes and Tax Credits | 0 | 0 |
Stock-based compensation expense | 4 | 3 |
Excess tax benefit from stock-based compensation | (1) | |
Unrealized loss (gain) on derivatives | 0 | 0 |
Loss on disposal of property, plant and equipment | 0 | 0 |
Undistributed (earnings) loss of affiliates—net | (32) | (231) |
Due to/from affiliates—net | 1 | |
Changes in: | ||
Accounts and notes receivable—net | 1 | 0 |
Inventories | 0 | 0 |
Accrued and prepaid income taxes | 0 | 0 |
Accounts and notes payable and accrued expenses | (1) | 0 |
Customer advances | 0 | 0 |
Other—net | 0 | 0 |
Net cash provided by operating activities | (2) | 3 |
Investing Activities: | ||
Additions to property, plant and equipment | (5) | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Withdrawals from restricted cash funds | 0 | 0 |
Other—net | 0 | 0 |
Net cash used in investing activities | (5) | 0 |
Financing Activities: | ||
Short-term debt—net | 9 | 226 |
Financing fees | 0 | |
Dividends paid on common stock | (70) | (72) |
Dividends to/from affiliates | 70 | 72 |
Issuance from Noncontrolling Interests | 0 | |
Distributions to noncontrolling interest | 0 | 0 |
Purchases of treasury stock | (236) | |
Issuances of common stock under employee stock plans | 6 | |
Excess tax benefit from stock-based compensation | 1 | |
Net cash provided by (used in) financing activities | 9 | (3) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 2 | 0 |
Cash and cash equivalents at beginning of period | 1 | 0 |
Cash and cash equivalents at end of period | 3 | 0 |
Reportable legal entities | CF Industries | ||
Operating Activities: | ||
Net earnings | 32 | 231 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 2 | 2 |
Deferred Income Taxes and Tax Credits | 10 | 10 |
Stock-based compensation expense | 0 | 0 |
Excess tax benefit from stock-based compensation | 0 | |
Unrealized loss (gain) on derivatives | 0 | 0 |
Loss on disposal of property, plant and equipment | 0 | 0 |
Undistributed (earnings) loss of affiliates—net | (14) | (271) |
Due to/from affiliates—net | 1 | |
Changes in: | ||
Accounts and notes receivable—net | 63 | 18 |
Inventories | 0 | 0 |
Accrued and prepaid income taxes | 0 | (14) |
Accounts and notes payable and accrued expenses | (11) | 28 |
Customer advances | 0 | 0 |
Other—net | 0 | 0 |
Net cash provided by operating activities | 82 | 5 |
Investing Activities: | ||
Additions to property, plant and equipment | 0 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Withdrawals from restricted cash funds | 0 | 0 |
Other—net | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing Activities: | ||
Short-term debt—net | (81) | (50) |
Financing fees | (2) | |
Dividends paid on common stock | (70) | (72) |
Dividends to/from affiliates | 70 | 72 |
Issuance from Noncontrolling Interests | 0 | |
Distributions to noncontrolling interest | 0 | 0 |
Purchases of treasury stock | 0 | |
Issuances of common stock under employee stock plans | 0 | |
Excess tax benefit from stock-based compensation | 0 | |
Net cash provided by (used in) financing activities | (81) | (52) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 1 | (47) |
Cash and cash equivalents at beginning of period | 0 | 106 |
Cash and cash equivalents at end of period | 1 | 59 |
Reportable legal entities | Other Subsidiaries | ||
Operating Activities: | ||
Net earnings | 35 | 276 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 144 | 113 |
Deferred Income Taxes and Tax Credits | 26 | (10) |
Stock-based compensation expense | 0 | 1 |
Excess tax benefit from stock-based compensation | 0 | |
Unrealized loss (gain) on derivatives | 18 | (11) |
Loss on disposal of property, plant and equipment | 3 | 6 |
Undistributed (earnings) loss of affiliates—net | (4) | (18) |
Due to/from affiliates—net | (2) | |
Changes in: | ||
Accounts and notes receivable—net | (33) | 17 |
Inventories | 16 | (68) |
Accrued and prepaid income taxes | (23) | 98 |
Accounts and notes payable and accrued expenses | (21) | (50) |
Customer advances | 65 | 170 |
Other—net | 40 | 1 |
Net cash provided by operating activities | 266 | 523 |
Investing Activities: | ||
Additions to property, plant and equipment | (671) | (445) |
Proceeds from sale of property, plant and equipment | 2 | 3 |
Withdrawals from restricted cash funds | 11 | 23 |
Other—net | 1 | (11) |
Net cash used in investing activities | (657) | (430) |
Financing Activities: | ||
Short-term debt—net | 72 | (176) |
Financing fees | 0 | |
Dividends paid on common stock | (70) | (72) |
Dividends to/from affiliates | 0 | 0 |
Issuance from Noncontrolling Interests | 2,800 | |
Distributions to noncontrolling interest | (13) | (11) |
Purchases of treasury stock | 0 | |
Issuances of common stock under employee stock plans | 0 | |
Excess tax benefit from stock-based compensation | 0 | |
Net cash provided by (used in) financing activities | 2,789 | (259) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (5) |
Increase (decrease) in cash and cash equivalents | 2,400 | (171) |
Cash and cash equivalents at beginning of period | 285 | 1,891 |
Cash and cash equivalents at end of period | 2,685 | 1,720 |
Eliminations | ||
Operating Activities: | ||
Net earnings | (46) | (502) |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 0 | 0 |
Deferred Income Taxes and Tax Credits | 0 | 0 |
Stock-based compensation expense | 0 | 0 |
Excess tax benefit from stock-based compensation | 0 | |
Unrealized loss (gain) on derivatives | 0 | 0 |
Loss on disposal of property, plant and equipment | 0 | 0 |
Undistributed (earnings) loss of affiliates—net | 46 | 502 |
Due to/from affiliates—net | 0 | |
Changes in: | ||
Accounts and notes receivable—net | (27) | (11) |
Inventories | 0 | 0 |
Accrued and prepaid income taxes | 0 | 0 |
Accounts and notes payable and accrued expenses | 27 | 11 |
Customer advances | 0 | 0 |
Other—net | 0 | 0 |
Net cash provided by operating activities | 0 | 0 |
Investing Activities: | ||
Additions to property, plant and equipment | 0 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Withdrawals from restricted cash funds | 0 | 0 |
Other—net | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing Activities: | ||
Short-term debt—net | 0 | 0 |
Financing fees | 0 | |
Dividends paid on common stock | 140 | 144 |
Dividends to/from affiliates | (140) | (144) |
Issuance from Noncontrolling Interests | 0 | |
Distributions to noncontrolling interest | 0 | 0 |
Purchases of treasury stock | 0 | |
Issuances of common stock under employee stock plans | 0 | |
Excess tax benefit from stock-based compensation | 0 | |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |