Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-32597 | |
Entity Registrant Name | CF INDUSTRIES HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-2697511 | |
Entity Address, Address Line One | 4 Parkway North | |
Entity Address, Postal Zip Code | 60015 | |
Entity Address, City or Town | Deerfield | |
City Area Code | 847 | |
Local Phone Number | 405-2400 | |
Title of 12(b) Security | common stock, par value $0.01 per share | |
Trading Symbol | CF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 192,947,620 | |
Entity Central Index Key | 0001324404 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Address, State or Province | IL |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,775 | $ 3,389 | $ 3,787 | $ 6,257 |
Cost of sales | 971 | 1,398 | 2,120 | 2,568 |
Gross margin | 804 | 1,991 | 1,667 | 3,689 |
Selling, general and administrative expenses | 71 | 73 | 145 | 137 |
U.K. long-lived and intangible asset impairment | 0 | 152 | 0 | 152 |
U.K. operations restructuring | 0 | 10 | 2 | 10 |
Transaction costs | 3 | 0 | 16 | 0 |
Other operating—net | 3 | 6 | (32) | 8 |
Total other operating costs and expenses | 77 | 241 | 131 | 307 |
Equity in earnings of operating affiliate | 7 | 28 | 24 | 54 |
Operating earnings | 734 | 1,778 | 1,560 | 3,436 |
Interest expense | 36 | 82 | 76 | 323 |
Interest income | (40) | (8) | (70) | (44) |
Loss on debt extinguishment | 0 | 8 | 0 | 8 |
Other non-operating—net | (2) | 0 | (5) | 1 |
Earnings before income taxes | 740 | 1,696 | 1,559 | 3,148 |
Income tax provision (benefit) | 134 | 357 | 303 | 758 |
Net earnings | 606 | 1,339 | 1,256 | 2,390 |
Less: Net earnings attributable to noncontrolling interest | 79 | 174 | 169 | 342 |
Net earnings attributable to common stockholders | $ 527 | $ 1,165 | $ 1,087 | $ 2,048 |
Net earnings per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ 2.71 | $ 5.59 | $ 5.56 | $ 9.83 |
Diluted (in dollars per share) | $ 2.70 | $ 5.58 | $ 5.55 | $ 9.78 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 194.6 | 208.2 | 195.4 | 208.4 |
Diluted (in shares) | 195 | 208.9 | 195.9 | 209.4 |
Dividends declared per common share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.80 | $ 0.70 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 606 | $ 1,339 | $ 1,256 | $ 2,390 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment—net of taxes | 23 | (27) | 30 | (40) |
Defined benefit plans—net of taxes | 2 | 8 | 1 | 12 |
Total other comprehensive income | 25 | (19) | 31 | (28) |
Comprehensive income | 631 | 1,320 | 1,287 | 2,362 |
Less: Comprehensive income attributable to noncontrolling interest | 79 | 174 | 169 | 342 |
Comprehensive income attributable to common stockholders | $ 552 | $ 1,146 | $ 1,118 | $ 2,020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 3,219 | $ 2,323 |
Accounts receivable—net | 388 | 582 |
Inventories | 319 | 474 |
Prepaid income taxes | 81 | 215 |
Other current assets | 65 | 79 |
Total current assets | 4,072 | 3,673 |
Property, plant and equipment—net | 6,218 | 6,437 |
Investment in affiliate | 72 | 74 |
Goodwill | 2,089 | 2,089 |
Operating lease right-of-use assets | 278 | 254 |
Other assets | 808 | 786 |
Total assets | 13,537 | 13,313 |
Current liabilities: | ||
Accounts payable and accrued expenses | 451 | 575 |
Income taxes payable | 47 | 3 |
Customer advances | 9 | 229 |
Current operating lease liabilities | 100 | 93 |
Other current liabilities | 15 | 95 |
Total current liabilities | 622 | 995 |
Long-term debt | 2,967 | 2,965 |
Deferred Income Tax Liabilities, Net | 910 | 958 |
Operating lease liabilities | 177 | 167 |
Other liabilities | 341 | 375 |
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, 2023—196,248,883 shares issued and 2022—195,604,404 shares issued | 2 | 2 |
Paid-in capital | 1,430 | 1,412 |
Retained earnings | 4,797 | 3,867 |
Treasury stock—at cost, 2023—3,313,189 shares and 2022—0 shares | (226) | 0 |
Accumulated other comprehensive loss | (199) | (230) |
Total stockholders’ equity | 5,804 | 5,051 |
Noncontrolling interest | 2,716 | 2,802 |
Total equity | 8,520 | 7,853 |
Total liabilities and equity | $ 13,537 | $ 13,313 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 196,248,883 | 195,604,404 |
Treasury Stock, Shares | 3,313,189 | 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 196,248,883 | 195,604,404 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total Stockholders’ Equity | $0.01 Par Value Common Stock | Treasury Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Balance at Dec. 31, 2021 | $ 6,036 | $ 3,206 | $ 2 | $ (2) | $ 1,375 | $ 2,088 | $ (257) | $ 2,830 |
Increase (decrease) in equity | ||||||||
Net earnings | 2,390 | 2,048 | 0 | 0 | 0 | 2,048 | 0 | 342 |
Less: Net earnings attributable to noncontrolling interest | 342 | |||||||
Net earnings attributable to common stockholders | 2,048 | |||||||
Other comprehensive loss | (28) | (28) | 0 | 0 | 0 | 0 | (28) | 0 |
Purchases of treasury stock | (590) | (590) | 0 | (590) | 0 | 0 | 0 | 0 |
Retirement of treasury stock | 0 | 0 | 0 | 283 | 23 | 260 | 0 | 0 |
Acquisition of treasury stock under employee stock plans | (23) | (23) | 0 | (23) | 0 | 0 | 0 | 0 |
Issuance of $0.01 par value common stock under employee stock plans | 101 | 101 | 0 | 1 | 100 | 0 | 0 | 0 |
Stock-based compensation expense | 22 | 22 | 0 | 0 | 22 | 0 | 0 | 0 |
Cash dividends | (147) | (147) | 0 | 0 | 0 | (147) | 0 | 0 |
Distribution declared to noncontrolling interest | (247) | 0 | 0 | 0 | 0 | 0 | 0 | (247) |
Balance at Jun. 30, 2022 | 7,514 | 4,589 | 2 | (331) | 1,474 | 3,729 | (285) | 2,925 |
Balance at Mar. 31, 2022 | 6,753 | 4,002 | 2 | (123) | 1,482 | 2,907 | (266) | 2,751 |
Increase (decrease) in equity | ||||||||
Net earnings | 1,339 | 1,165 | 0 | 0 | 0 | 1,165 | 0 | 174 |
Less: Net earnings attributable to noncontrolling interest | 174 | |||||||
Net earnings attributable to common stockholders | 1,165 | |||||||
Other comprehensive loss | (19) | (19) | 0 | 0 | 0 | 0 | (19) | 0 |
Purchases of treasury stock | (490) | (490) | 0 | (490) | 0 | 0 | 0 | 0 |
Retirement of treasury stock | 2 | 2 | 0 | (281) | 23 | 260 | 0 | 0 |
Issuance of $0.01 par value common stock under employee stock plans | 4 | 4 | 0 | 1 | 3 | 0 | 0 | 0 |
Stock-based compensation expense | 12 | 12 | 0 | 0 | 12 | 0 | 0 | 0 |
Cash dividends | (83) | (83) | 0 | 0 | 0 | (83) | 0 | 0 |
Balance at Jun. 30, 2022 | 7,514 | 4,589 | 2 | (331) | 1,474 | 3,729 | (285) | 2,925 |
Balance at Dec. 31, 2022 | 7,853 | 5,051 | 2 | 0 | 1,412 | 3,867 | (230) | 2,802 |
Increase (decrease) in equity | ||||||||
Net earnings | 1,256 | 1,087 | 0 | 0 | 0 | 1,087 | 0 | 169 |
Less: Net earnings attributable to noncontrolling interest | 169 | |||||||
Net earnings attributable to common stockholders | 1,087 | |||||||
Other comprehensive loss | 31 | 31 | 0 | 0 | 0 | 0 | 31 | 0 |
Purchases of treasury stock | (206) | (206) | 0 | (206) | 0 | 0 | 0 | 0 |
Acquisition of treasury stock under employee stock plans | (22) | (22) | 0 | (22) | 0 | 0 | 0 | 0 |
Issuance of $0.01 par value common stock under employee stock plans | 1 | 1 | 0 | 2 | (1) | 0 | 0 | 0 |
Stock-based compensation expense | 19 | 19 | 0 | 0 | 19 | 0 | 0 | 0 |
Cash dividends | (157) | (157) | 0 | 0 | 0 | (157) | 0 | 0 |
Distribution declared to noncontrolling interest | (255) | 0 | 0 | 0 | 0 | 0 | 0 | (255) |
Balance at Jun. 30, 2023 | 8,520 | 5,804 | 2 | (226) | 1,430 | 4,797 | (199) | 2,716 |
Balance at Mar. 31, 2023 | 8,090 | 5,453 | 2 | (97) | 1,424 | 4,348 | (224) | 2,637 |
Increase (decrease) in equity | ||||||||
Net earnings | 606 | 527 | 0 | 0 | 0 | 527 | 0 | 79 |
Less: Net earnings attributable to noncontrolling interest | 79 | |||||||
Net earnings attributable to common stockholders | 527 | |||||||
Other comprehensive loss | 25 | 25 | 0 | 0 | 0 | 0 | 25 | 0 |
Purchases of treasury stock | (131) | (131) | 0 | (131) | 0 | 0 | 0 | 0 |
Issuance of $0.01 par value common stock under employee stock plans | 1 | 1 | 0 | 2 | (1) | 0 | 0 | 0 |
Stock-based compensation expense | 7 | 7 | 0 | 0 | 7 | 0 | 0 | 0 |
Cash dividends | (78) | (78) | 0 | 0 | 0 | (78) | 0 | 0 |
Balance at Jun. 30, 2023 | $ 8,520 | $ 5,804 | $ 2 | $ (226) | $ 1,430 | $ 4,797 | $ (199) | $ 2,716 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Dividends declared per common share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.80 | $ 0.70 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Activities: | ||
Net earnings | $ 1,256 | $ 2,390 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 427 | 431 |
Deferred income taxes | (53) | 0 |
Stock-based compensation expense | 19 | 22 |
Loss on debt extinguishment | 0 | 8 |
Unrealized net gain on natural gas derivatives | (72) | (50) |
U.K. long-lived and intangible asset impairment | 0 | 152 |
Gain on sale of emission credits | (36) | (3) |
Gain (Loss) on Disposition of Property Plant Equipment | 1 | 0 |
Undistributed earnings of affiliate—net of taxes | 0 | (3) |
Changes in: | ||
Accounts receivable—net | 198 | (239) |
Inventories | 140 | (99) |
Accrued and prepaid income taxes | 166 | 12 |
Accounts payable and accrued expenses | (138) | 223 |
Customer advances | (220) | (628) |
Other—net | (29) | 64 |
Net cash provided by operating activities | 1,659 | 2,280 |
Investing Activities: | ||
Additions to property, plant and equipment | (164) | (129) |
Proceeds from sale of property, plant and equipment | 1 | 1 |
Distributions received from unconsolidated affiliate | 0 | 4 |
Purchase of investments held in nonqualified employee benefit trust | 0 | (1) |
Proceeds from sale of investments held in nonqualified employee benefit trust | 0 | 1 |
Purchase of emission credits | 0 | (9) |
Proceeds from sale of emission credits | 36 | 12 |
Net cash used in investing activities | (127) | (121) |
Financing Activities: | ||
Repayments of Long-term Debt | 0 | (507) |
Payments of Financing Costs | 0 | (4) |
Dividends paid | (158) | (147) |
Distributions to noncontrolling interest | (255) | (247) |
Purchases of treasury stock | (205) | (577) |
Proceeds from issuances of common stock under employee stock plans | 1 | 101 |
Shares withheld for taxes | (22) | (23) |
Net cash provided by (used in) financing activities | (639) | (1,404) |
Effect of exchange rate changes on cash and cash equivalents | 3 | (13) |
Increase in cash and cash equivalents | 896 | 742 |
Cash and cash equivalents at beginning of period | 2,323 | 1,628 |
Cash and cash equivalents at end of period | $ 3,219 | $ 2,370 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our nitrogen manufacturing complexes in the United States, Canada and the United Kingdom, an extensive storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. Our principal customers are cooperatives, independent fertilizer distributors, traders, wholesalers and industrial users. Our core product is anhydrous ammonia (ammonia), which contains 82% nitrogen and 18% hydrogen. Our nitrogen products that are upgraded from ammonia are 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. All references to “CF Holdings,” “the Company,” “we,” “us” and “our” refer to CF Industries Holdings, Inc. and its subsidiaries, except where the context makes clear that the reference is only 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, 2022, 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. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | We track our revenue by product and by geography. See Note 15—Segment Disclosures for the revenue of each of our reportable segments, which are Ammonia, Granular Urea, UAN, AN and Other. The following table summarizes our revenue by product and by geography (based on destination of our shipment) for the three and six months ended June 30, 2023 and 2022: Ammonia Granular Urea UAN AN Other Total (in millions) Three months ended June 30, 2023 North America $ 460 $ 460 $ 463 $ 65 $ 120 $ 1,568 Europe and other 65 — 85 39 18 207 Total revenue $ 525 $ 460 $ 548 $ 104 $ 138 $ 1,775 Three months ended June 30, 2022 North America $ 987 $ 816 $ 877 $ 76 $ 180 $ 2,936 Europe and other 128 17 99 177 32 453 Total revenue $ 1,115 $ 833 $ 976 $ 253 $ 212 $ 3,389 Six months ended June 30, 2023 North America $ 790 $ 1,035 $ 982 $ 139 $ 246 $ 3,192 Europe and other 159 36 233 124 43 595 Total revenue $ 949 $ 1,071 $ 1,215 $ 263 $ 289 $ 3,787 Six months ended June 30, 2022 North America $ 1,570 $ 1,552 $ 1,890 $ 159 $ 333 $ 5,504 Europe and other 185 46 101 317 104 753 Total revenue $ 1,755 $ 1,598 $ 1,991 $ 476 $ 437 $ 6,257 As of June 30, 2023 and December 31, 2022, we had $9 million and $229 million, respectively, in customer advances on our consolidated balance sheets. During the six months ended June 30, 2023 and 2022, substantially all of the customer advances at the beginning of each respective period were recognized as revenue. We offer cash incentives to certain customers generally based on the volume of their purchases over the fertilizer year ending June 30. Our cash incentives do not provide an option to the customer for additional product. The balances of customer incentives accrued as of June 30, 2023 and December 31, 2022 were not material. We have certain customer contracts with performance obligations under which, if the customer does not take the required amount of product specified in the contract, then the customer is required to make a payment to us, the amount of which payment may vary based upon the terms and conditions of the applicable contract. As of June 30, 2023, excluding contracts with original durations of less than one year, and based on the minimum product tonnage to be sold and current market price estimates, our remaining performance obligations under these contracts were approximately $845 million. We expect to recognize approximately 27% of these performance obligations as revenue in the remainder of 2023, approximately 36% as revenue during 2024-2026, approximately 17% as revenue during 2027-2029, and the remainder thereafter. Subject to the terms and conditions of the applicable contracts, if the customers do not satisfy their purchase obligations under such contracts, the minimum amount that they would be required to pay to us under such contracts, in the aggregate, was approximately $255 million as of June 30, 2023. Other than the performance obligations described above, we expect that any performance obligations under our customer contracts that were unfulfilled or partially fulfilled at December 31, 2022 will be satisfied in 2023. |
Net Earnings Per Share
Net Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net earnings per share were computed as follows: Three months ended Six months ended 2023 2022 2023 2022 (in millions, except per share amounts) Net earnings attributable to common stockholders $ 527 $ 1,165 $ 1,087 $ 2,048 Basic earnings per common share: Weighted-average common shares outstanding 194.6 208.2 195.4 208.4 Net earnings attributable to common stockholders $ 2.71 $ 5.59 $ 5.56 $ 9.83 Diluted earnings per common share: Weighted-average common shares outstanding 194.6 208.2 195.4 208.4 Dilutive common shares—stock-based awards 0.4 0.7 0.5 1.0 Diluted weighted-average common shares outstanding 195.0 208.9 195.9 209.4 Net earnings attributable to common stockholders $ 2.70 $ 5.58 $ 5.55 $ 9.78 Diluted earnings per common share is calculated using weighted-average common shares outstanding, including the dilutive effect of stock-based awards as determined under the treasury stock method. In the computation of diluted earnings per common share, potentially dilutive stock-based awards are excluded if the effect of their inclusion is anti-dilutive. Shares for anti-dilutive stock-based awards not included in the computation of diluted earnings per common share were zero in both the three and six months ended June 30, 2023 and the three and six months ended June 30, 2022. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: June 30, December 31, (in millions) Finished goods $ 280 $ 437 Raw materials, spare parts and supplies 39 37 Total inventories $ 319 $ 474 |
United Kingdom Operations Restr
United Kingdom Operations Restructuring | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
United Kingdom Operations Restructuring | United Kingdom Operations Restructuring In the second quarter of 2022, we approved and announced our proposed plan to restructure our U.K. operations, including the planned permanent closure of the Ince facility, which had been idled since September 2021, and optimization of the remaining manufacturing operations at our Billingham facility. Pursuant to our proposed plan to restructure our U.K. operations and dispose of the Ince facility assets before we originally intended, we concluded that an evaluation of our long-lived assets and an impairment test was required. Our assessment then identified the U.K. asset groups as U.K. Ammonia, U.K. AN and U.K. Other, comprising our ongoing U.K. operations, and Ince, U.K. In response to this impairment indicator, we compared the undiscounted cash flows expected to result from the use and eventual disposition of the Ince, U.K. asset group to its carrying amount and concluded the carrying amount was not recoverable and should be adjusted to its fair value. As a result, in the second quarter of 2022, we recorded total charges of $162 million related to the Ince facility as follows: • asset impairment charges of $152 million consisting of the following: ◦ an impairment charge of $135 million related to property, plant and equipment that is planned for abandonment at the Ince facility, including a liability of approximately $9 million for the costs of certain asset retirement activities related to the Ince site; ◦ an intangible asset impairment charge of $8 million related to trade names; and ◦ an impairment charge of $9 million related to the write-down of spare parts and certain raw materials at the Ince facility; and • a charge for post-employment benefits totaling $10 million, which is included in the U.K. operations restructuring line item in our consolidated statements of operations, related to contractual and statutory obligations due to employees whose employment would be terminated in the proposed plan. In August 2022, the final restructuring plan was approved, and decommissioning activities at our Ince facility were initiated. As of June 30, 2023, the decommissioning of our Ince facility and other approved restructuring actions have been completed. |
Property, Plant and Equipment-N
Property, Plant and Equipment-Net | 3 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment-Net | Property, plant and equipment—net consists of the following: June 30, December 31, (in millions) Land $ 114 $ 113 Machinery and equipment 12,740 12,633 Buildings and improvements 923 914 Construction in progress 303 203 Property, plant and equipment (1) 14,080 13,863 Less: Accumulated depreciation and amortization 7,862 7,426 Property, plant and equipment—net $ 6,218 $ 6,437 _______________________________________________________________________________ (1) As of June 30, 2023 and December 31, 2022, we had property, plant and equipment that was accrued but unpaid of approximately $63 million and $53 million, respectively. As of June 30, 2022 and December 31, 2021, we had property, plant and equipment that was accrued but unpaid of approximately $51 million and $35 million, respectively. Depreciation and amortization related to property, plant and equipment was $218 million and $422 million for the three and six months ended June 30, 2023, respectively, and $219 million and $424 million for the three and six months ended June 30, 2022, 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. Scheduled replacements and overhauls of plant machinery and equipment during a plant turnaround include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors and heat exchangers and the replacement of catalysts when a full plant shutdown occurs. Scheduled inspections, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications, are also conducted during full plant shutdowns. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized. The following is a summary of capitalized plant turnaround costs: Six months ended 2023 2022 (in millions) Net capitalized turnaround costs as of January 1 $ 312 $ 355 Additions 47 26 Depreciation (62) (70) Impairment related to U.K. operations — (7) Effect of exchange rate changes 1 (4) Net capitalized turnaround costs as of June 30 $ 298 $ 300 |
Equity Method Investment
Equity Method Investment | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | 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. As of June 30, 2023, the total carrying value of our equity method investment in PLNL was $72 million, $32 million more than our share of PLNL’s book value. The excess is attributable to the purchase accounting impact of our acquisition of the investment in PLNL and reflects the revaluation of property, plant and equipment. The increased basis for property, plant and equipment is being amortized over a remaining period of approximately 10 years. Our equity in earnings of PLNL is different from our ownership interest in income reported by PLNL due to amortization of this basis difference. 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 $36 million and $95 million for the three and six months ended June 30, 2023, respectively, and $77 million and $151 million for the three and six months ended June 30, 2022, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Our cash and cash equivalents and other investments consist of the following: June 30, 2023 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 183 $ — $ — $ 183 Cash equivalents: U.S. and Canadian government obligations 2,792 — — 2,792 Other debt securities 244 — — 244 Total cash and cash equivalents $ 3,219 $ — $ — $ 3,219 Nonqualified employee benefit trusts 16 1 — 17 December 31, 2022 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 153 $ — $ — $ 153 Cash equivalents: U.S. and Canadian government obligations 1,902 — — 1,902 Other debt securities 268 — — 268 Total cash and cash equivalents $ 2,323 $ — $ — $ 2,323 Nonqualified employee benefit trusts 16 — — 16 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 U.S. and Canadian federal governments; 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 June 30, 2023 and December 31, 2022 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value: June 30, 2023 Total Fair Quoted Prices Significant Significant (in millions) Cash equivalents $ 3,036 $ 3,036 $ — $ — Nonqualified employee benefit trusts 17 17 — — Derivative assets 9 — 9 — Derivative liabilities (9) — (9) — December 31, 2022 Total Fair Quoted Prices Significant Significant (in millions) Cash equivalents $ 2,170 $ 2,170 $ — $ — Nonqualified employee benefit trusts 16 16 — — Derivative assets 12 — 12 — Derivative liabilities (85) — (85) — Cash Equivalents Cash equivalents include highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less. As of June 30, 2023 and December 31, 2022, 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. Nonqualified Employee Benefit Trusts We maintain trusts associated with certain nonqualified supplemental pension plans. The fair values of the trust assets are based on daily quoted prices in an active market, which represent the net asset values of the shares held in the trusts, and are included on our consolidated balance sheets in other assets. Debt securities are accounted for as available-for-sale securities, and changes in fair value are reported in other comprehensive income. Changes in the fair value of available-for-sale equity securities in the trust assets are recognized through earnings. Derivative Instruments The derivative instruments that we use are primarily natural gas fixed price swaps, basis swaps and options traded in the over-the-counter markets with multi-national commercial banks, other major financial institutions or large energy companies. The natural gas derivative contracts represent anticipated natural gas needs for future periods, and settlements are scheduled to coincide with anticipated natural gas purchases during those future periods. The natural gas derivative contracts settle using primarily a NYMEX futures price index. 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. See Note 12—Derivative Financial Instruments for additional information. Financial Instruments The carrying amount and estimated fair value of our financial instruments are as follows: June 30, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value (in millions) Long-term debt $ 2,967 $ 2,767 $ 2,965 $ 2,764 The fair value of our long-term debt was based on 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, they are classified as Level 2 inputs. The carrying amounts of cash and cash equivalents, as well as any 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 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | For the three months ended June 30, 2023, we recorded an income tax provision of $134 million on pre-tax income of $740 million, or an effective tax rate of 18.2%, compared to an income tax provision of $357 million on pre-tax income of $1.70 billion, or an effective tax rate of 21.1%, for the three months ended June 30, 2022. For the six months ended June 30, 2023, we recorded an income tax provision of $303 million on pre-tax income of $1.56 billion, or an effective tax rate of 19.5%, compared to an income tax provision of $758 million on pre-tax income of $3.15 billion, or an effective tax rate of 24.1%, for the six months ended June 30, 2022. Our effective tax rate is impacted by earnings attributable to the noncontrolling interest in CF Industries Nitrogen, LLC (CFN), as our consolidated income tax provision does not include a tax provision on the earnings attributable to the noncontrolling interest. Our effective tax rate for the three months ended June 30, 2023 of 18.2%, which is based on pre-tax income of $740 million, including $79 million of earnings attributable to the noncontrolling interest, would be 2.1 percentage points higher if based on pre-tax income exclusive of the $79 million of earnings attributable to the noncontrolling interest. Our effective tax rate for the three months ended June 30, 2022 of 21.1%, which is based on pre-tax income of $1.70 billion, including $174 million of earnings attributable to the noncontrolling interest, would be 2.4 percentage points higher if based on pre-tax income exclusive of the $174 million of earnings attributable to the noncontrolling interest. Our effective tax rate for the six months ended June 30, 2023 of 19.5%, which is based on pre-tax income of $1.56 billion, including $169 million of earnings attributable to the noncontrolling interest, would be 2.3 percentage points higher if based on pre-tax income exclusive of the $169 million of earnings attributable to the noncontrolling interest. Our effective tax rate for the six months ended June 30, 2022 of 24.1%, which is based on pre-tax income of $3.15 billion, including $342 million of earnings attributable to the noncontrolling interest, would be 2.9 percentage points higher if based on pre-tax income exclusive of the $342 million of earnings attributable to the noncontrolling interest. In addition, for the six months ended June 30, 2022, our income tax provision includes $22 million of income tax benefit due to share-based compensation activity and $78 million of income tax provision related to the Canada Revenue Agency Competent Authority Matter, as discussed below. Canada Revenue Agency Competent Authority Matter In 2016, the Canada Revenue Agency (CRA) and Alberta Tax and Revenue Administration (Alberta TRA) issued Notices of Reassessment for tax years 2006 through 2009 to one of our Canadian affiliates asserting a disallowance of certain patronage deductions. We filed Notices of Objection with respect to the Notices of Reassessment with the CRA and Alberta TRA and posted letters of credit in lieu of paying the additional tax liability assessed. The letters of credit served as security until the matter was resolved, as discussed below. In 2018, the matter, including the related transfer pricing topic regarding the allocation of profits between Canada and the United States, was accepted for consideration under the bilateral settlement provisions of the U.S.-Canada tax treaty (the Treaty) by the United States and Canadian competent authorities, and included tax years 2006 through 2011. In the second quarter of 2021, the Company submitted the transfer pricing aspect of the matter into the arbitration process under the terms of the Treaty. In February 2022, we were informed that a decision was reached by the arbitration panel for tax years 2006 through 2011. In March 2022, we received further details of the results of the arbitration proceedings and the settlement provisions between the United States and Canadian competent authorities, and we accepted the decision of the arbitration panel. Under the terms of the arbitration decision, additional income for tax years 2006 through 2011 was subject to tax in Canada, resulting in our having additional Canadian tax liability for those tax years. In the six months ended June 30, 2022, as a result of the impact of these events on our Canadian and U.S. federal and state income taxes, we recognized an income tax provision of $78 million, reflecting the net impact of $129 million of accrued income taxes payable to Canada for tax years 2006 through 2011, partially offset by net income tax receivables of approximately $51 million in the United States, and we accrued net interest of $104 million, primarily reflecting the impact of estimated interest payable to Canada. Of the $78 million of income tax provision and $104 million of net interest expense recognized in the six months ended June 30, 2022, $2 million of income tax provision and $5 million of net interest expense was recognized in the three months ended June 30, 2022. In the second half of 2022, this tax liability and the related interest were assessed and paid, resulting in total payments of $224 million, which also reflect the impact of changes in foreign currency exchange rates. As a result, the letters of credit we had posted in lieu of paying the additional tax liability assessed by the Notices of Reassessment were cancelled. Due primarily to the availability of additional foreign tax credits to offset in part the increased Canadian tax referenced above, the Company has filed amended tax returns in the United States to request a refund of taxes paid. Transfer pricing positions As a result of the outcome of the arbitration decision discussed above, we also evaluated our transfer pricing positions between Canada and the United States for open years 2012 and after. Based on this evaluation, for the six months ended June 30, 2022, we recorded the following: • liabilities for unrecognized tax benefits of approximately $314 million, with a corresponding income tax provision, and accrued interest of approximately $116 million related to the liabilities for unrecognized tax benefits, and • noncurrent income tax receivables of approximately $359 million, with a corresponding income tax benefit, and accrued interest income of approximately $30 million related to the noncurrent income tax receivables. In the six months ended June 30, 2022, the impact on our consolidated statement of operations of the amounts recorded as a result of this evaluation of transfer pricing positions, including $26 million of net deferred income tax provision for other transfer pricing tax effects, was $19 million of income tax benefit and $86 million of net interest expense before tax ($93 million after tax). Of the $19 million of income tax benefit and $86 million of net interest expense recognized in the six months ended June 30, 2022, $21 million of income tax benefit and $23 million of net interest expense ($24 million after tax) was recognized in the three months ended June 30, 2022. |
Financing Agreements
Financing Agreements | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Financing Agreements | Revolving Credit Agreement We have a senior unsecured revolving credit agreement (the Revolving Credit Agreement), which provides for a revolving credit facility of up to $750 million with a maturity of December 5, 2024. The Revolving Credit Agreement includes a letter of credit sub-limit of $125 million. Borrowings under the Revolving Credit Agreement may be used for working capital, capital expenditures, acquisitions, share repurchases and other general corporate purposes. Borrowings under the Revolving Credit Agreement may be denominated in U.S. dollars, Canadian dollars, euros and British pounds, and bear interest at a per annum rate equal to, at our option, an applicable adjusted term Secured Overnight Financing Rate or base rate plus, in either case, a specified margin. We 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’ credit rating at the time. As of June 30, 2023, we had unused borrowing capacity under the Revolving Credit Agreement of $750 million and no outstanding letters of credit under the Revolving Credit Agreement. There were no borrowings outstanding under the Revolving Credit Agreement as of June 30, 2023 or December 31, 2022, or during the six months ended June 30, 2023. The Revolving Credit Agreement contains representations and warranties and affirmative and negative covenants, including financial covenants. As of June 30, 2023, we were in compliance with all covenants under the Revolving Credit Agreement. Letters of Credit In addition to the letters of credit that may be issued under the Revolving Credit Agreement, as described above, we have also entered into a bilateral agreement with capacity to issue up to $350 million of letters of credit. As of June 30, 2023, approximately $205 million of letters of credit were outstanding under this agreement. Senior Notes Long-term debt presented on our consolidated balance sheets as of June 30, 2023 and December 31, 2022 consisted of the following debt securities issued by CF Industries: Effective Interest Rate June 30, 2023 December 31, 2022 Principal Carrying Amount (1) Principal Carrying Amount (1) (in millions) Public Senior Notes: 5.150% due March 2034 5.293% 750 741 750 741 4.950% due June 2043 5.040% 750 742 750 742 5.375% due March 2044 5.478% 750 741 750 740 Senior Secured Notes: 4.500% due December 2026 (2) 4.783% 750 743 750 742 Total long-term debt $ 3,000 $ 2,967 $ 3,000 $ 2,965 _______________________________________________________________________________ (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $7 million as of both June 30, 2023 and December 31, 2022, and total deferred debt issuance costs were $26 million and $28 million as of June 30, 2023 and December 31, 2022, respectively. (2) Effective August 23, 2021, these notes are no longer secured, in accordance with the terms of the applicable indenture. Under the indentures (including the applicable supplemental indentures) governing the senior notes due 2034, 2043 and 2044 identified in the table above (the Public Senior Notes), each series of Public Senior Notes is guaranteed by CF Holdings. Under the terms of the indenture governing the 4.500% senior secured notes due December 2026 (the 2026 Notes) identified in the table above, the 2026 Notes are guaranteed by CF Holdings. |
Interest Expense
Interest Expense | 6 Months Ended |
Jun. 30, 2023 | |
Interest Expense [Abstract] | |
Interest Expense | Details of interest expense are as follows: Three months ended Six months ended 2023 2022 2023 2022 (in millions) Interest on borrowings (1) $ 37 $ 38 $ 74 $ 80 Fees on financing agreements (1) 2 2 4 4 Interest on tax liabilities (2) (2) 42 — 240 Interest capitalized (1) — (2) (1) Total interest expense $ 36 $ 82 $ 76 $ 323 _______________________________________________________________________________ (1) See Note 10—Financing Agreements for additional information. (2) See Note 9—Income Taxes for additional information. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | 12. Derivative Financial Instruments We use derivative financial instruments to reduce our exposure to changes in prices for natural gas that will be purchased in the future. Natural gas is the largest and most volatile component of our manufacturing cost for nitrogen-based products. From time to time, we may also use derivative financial instruments to reduce our exposure to changes in foreign currency exchange rates. The derivatives that we use to reduce our exposure to changes in prices for natural gas are primarily natural gas fixed price swaps, basis swaps and options traded in the over-the-counter 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 enter 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 June 30, 2023, we had natural gas derivative contracts covering certain periods through March 2024. As of June 30, 2023, our open natural gas derivative contracts consisted of natural gas fixed price swaps, basis swaps and options for 43.8 million MMBtus of natural gas. As of December 31, 2022, we had open natural gas derivative contracts consisting of natural gas fixed price swaps, basis swaps and options for 66.3 million MMBtus of natural gas. For the six months ended June 30, 2023, we used derivatives to cover approximately 36% of our natural gas consumption. The effect of derivatives in our consolidated statements of operations is shown in the table below. Gain (loss) recognized in income Three months ended Six months ended Location 2023 2022 2023 2022 (in millions) Unrealized net gains on natural gas derivatives Cost of sales $ — $ 17 $ 72 $ 50 Realized net (losses) gains on natural gas derivatives Cost of sales — (9) (118) 8 Net derivative gains (losses) $ — $ 8 $ (46) $ 58 The fair values of derivatives on our consolidated balance sheets are shown below. As of June 30, 2023 and December 31, 2022, none of our derivative instruments were designated as hedging instruments. See Note 8—Fair Value Measurements for additional information on derivative fair values. Asset Derivatives Liability Derivatives Balance Sheet Location June 30, December 31, 2022 Balance Sheet June 30, December 31, 2022 (in millions) (in millions) Natural gas derivatives Other current assets $ 9 $ 12 Other current liabilities $ (9) $ (85) Most of our International Swaps and Derivatives Association (ISDA) agreements contain credit-risk-related contingent features such as cross default provisions. In the event of certain defaults or termination events, our counterparties may request early termination and net settlement of certain derivative trades or, under certain ISDA agreements, may require us to collateralize derivatives in a net liability position. As of June 30, 2023 and December 31, 2022, the aggregate fair value of the derivative instruments with credit-risk-related contingent features in net liability positions was zero and $73 million, respectively, which also approximates the fair value of the assets that may be needed to settle the obligations if the credit-risk-related contingent features were triggered at the reporting dates. The credit support documents executed in connection with certain of our 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. As of June 30, 2023 and December 31, 2022, we had no cash collateral on deposit with counterparties for derivative contracts. The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of June 30, 2023 and December 31, 2022: Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial Cash collateral received (pledged) Net (in millions) June 30, 2023 Total derivative assets $ 9 $ — $ — $ 9 Total derivative liabilities (9) — — (9) Net derivative liabilities $ — $ — $ — $ — December 31, 2022 Total derivative assets $ 12 $ — $ — $ 12 Total derivative liabilities (85) — — (85) Net derivative liabilities $ (73) $ — $ — $ (73) _______________________________________________________________________________ (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 Interest
Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | We have a strategic venture with CHS Inc. (CHS) under which CHS owns an equity interest in CFN, a subsidiary of CF Holdings, which represents approximately 11% of the membership interests of CFN. We own the remaining membership interests. Under the terms of CFN’s limited liability company agreement, each member’s interest will reflect, over time, the impact of the profitability of CFN, any member contributions made to CFN and withdrawals and distributions received from CFN. For financial reporting purposes, the assets, liabilities and earnings of the strategic venture are consolidated into our financial statements. CHS’ interest in the strategic venture is recorded in noncontrolling interest in our consolidated financial statements. A reconciliation of the beginning and ending balances of noncontrolling interest and distributions payable to noncontrolling interest in our consolidated balance sheets is provided below. 2023 2022 (in millions) Noncontrolling interest: Balance as of January 1 $ 2,802 $ 2,830 Earnings attributable to noncontrolling interest 169 342 Declaration of distributions payable (255) (247) Balance as of June 30 $ 2,716 $ 2,925 Distributions payable to noncontrolling interest: Balance as of January 1 $ — $ — Declaration of distributions payable 255 247 Distributions to noncontrolling interest (255) (247) Balance as of June 30 $ — $ — CHS also receives deliveries pursuant to a supply agreement under which CHS has the right to purchase annually from CFN up to approximately 1.1 million tons of granular urea and 580,000 tons of UAN at market prices. As a result of its equity interest in CFN, CHS is entitled to semi-annual cash distributions from CFN. We are also entitled to semi-annual cash distributions from CFN. The amounts of distributions from CFN to us and CHS are based generally on the profitability of CFN and determined based on the volume of granular urea and UAN sold by CFN to us and CHS pursuant to supply agreements, less |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock On November 3, 2021, our Board of Directors (the Board) authorized the repurchase of up to $1.5 billion of CF Holdings common stock through December 31, 2024 (the 2021 Share Repurchase Program). On November 2, 2022, the Board authorized the repurchase of up to $3 billion of CF Holdings common stock commencing upon completion of the 2021 Share Repurchase Program and effective through December 31, 2025 (the 2022 Share Repurchase Program). Repurchases under these programs 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 will be determined by our management based on the evaluation of market conditions, stock price, and other factors. The following table summarizes the share repurchases under the 2022 Share Repurchase Program and the 2021 Share Repurchase Program. 2022 Share Repurchase Program 2021 Share Repurchase Program Shares Amounts (1) Shares Amounts (1) (in millions) Shares repurchased in 2022: First quarter — $ — 1.3 $ 100 Second quarter — — 5.3 490 Third quarter — — 6.1 532 Fourth quarter — — 2.2 223 Total shares repurchased in 2022 — — 14.9 1,345 Shares repurchased as of December 31, 2022 — $ — 14.9 $ 1,345 Shares repurchased in 2023: First quarter — $ — 1.1 $ 75 Second quarter 0.8 50 1.2 80 Total shares repurchased in 2023 0.8 50 2.3 155 Shares repurchased as of June 30, 2023 0.8 $ 50 17.2 $ 1,500 ______________________________________________________________________________ (1) As defined in the share repurchase programs, amounts reflect the price paid for the shares of common stock repurchased, excluding commissions paid to brokers and excise taxes. In the six months ended June 30, 2023, we completed the 2021 Share Repurchase Program with the repurchase of approximately 2.3 million shares for $155 million, and we repurchased approximately 0.8 million shares under the 2022 Share Repurchase Program for $50 million. In the six months ended June 30, 2022, we repurchased approximately 6.6 million shares under the 2021 Share Repurchase Program for $590 million, of which $14 million was accrued and unpaid as of June 30, 2022. Accumulated Other Comprehensive Loss Changes to accumulated other comprehensive loss and the impact on other comprehensive income (loss) are as follows: Foreign Unrealized Defined Accumulated (in millions) Balance as of December 31, 2022 $ (179) $ 3 $ (54) $ (230) Gain arising during the period — — 5 5 Effect of exchange rate changes and deferred taxes 30 — (4) 26 Balance as of June 30, 2023 $ (149) $ 3 $ (53) $ (199) Balance as of December 31, 2021 $ (141) $ 4 $ (120) $ (257) Gain arising during the period — — 3 3 Reclassification to earnings — — 2 2 Effect of exchange rate changes and deferred taxes (40) — 7 (33) Balance as of June 30, 2022 $ (181) $ 4 $ (108) $ (285) |
Segment Disclosures
Segment Disclosures | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
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 primarily of selling, general and administrative expenses and other operating—net) and non-operating expenses (consisting primarily of interest and income taxes) are centrally managed and are not included in the measurement of segment profitability reviewed by management. Segment data for sales, cost of sales and gross margin for the three and six months ended June 30, 2023 and 2022 are presented in the table below. Ammonia Granular Urea (1) UAN (1) AN (1) Other (1) Consolidated (in millions) Three months ended June 30, 2023 Net sales $ 525 $ 460 $ 548 $ 104 $ 138 $ 1,775 Cost of sales 303 222 289 81 76 971 Gross margin $ 222 $ 238 $ 259 $ 23 $ 62 804 Total other operating costs and expenses 77 Equity in earnings of operating affiliate 7 Operating earnings $ 734 Three months ended June 30, 2022 Net sales $ 1,115 $ 833 $ 976 $ 253 $ 212 $ 3,389 Cost of sales 442 360 343 151 102 1,398 Gross margin $ 673 $ 473 $ 633 $ 102 $ 110 1,991 Total other operating costs and expenses (2) 241 Equity in earnings of operating affiliate 28 Operating earnings $ 1,778 Six months ended June 30, 2023 Net sales $ 949 $ 1,071 $ 1,215 $ 263 $ 289 $ 3,787 Cost of sales 583 549 635 185 168 2,120 Gross margin $ 366 $ 522 $ 580 $ 78 $ 121 1,667 Total other operating costs and expenses 131 Equity in earnings of operating affiliate 24 Operating earnings $ 1,560 Six months ended June 30, 2022 Net sales $ 1,755 $ 1,598 $ 1,991 $ 476 $ 437 $ 6,257 Cost of sales 722 630 688 322 206 2,568 Gross margin $ 1,033 $ 968 $ 1,303 $ 154 $ 231 3,689 Total other operating costs and expenses (2) 307 Equity in earnings of operating affiliate 54 Operating earnings $ 3,436 _______________________________________________________________________________ (1) The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results. |
Agreement to Purchase Ammonia P
Agreement to Purchase Ammonia Production Facility | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Agreement to Purchase Ammonia Production Facility | Agreement To Purchase Ammonia Production Facility On March 20, 2023, we entered into an asset purchase agreement with Dyno Nobel Louisiana Ammonia, LLC (DNLA), a U.S. subsidiary of Australian-based Incitec Pivot Limited (IPL), and IPL. Under the terms of the agreement, we will purchase DNLA’s ammonia production complex located in Waggaman, Louisiana for a purchase price of $1.675 billion, subject to adjustment. The facility has a nameplate capacity of 880,000 tons of ammonia annually. The parties will allocate $425 million of the purchase price to a long-term ammonia offtake agreement providing for us to supply up to 200,000 tons of ammonia per year to IPL’s Dyno Nobel, Inc. subsidiary. We expect to fund the balance of the purchase price, representing the $1.675 billion purchase price, as adjusted, less $425 million, with cash on hand. The consummation of the transaction is subject to the satisfaction or waiver of customary conditions, including, among others, the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The agreement includes certain customary termination rights, including the right of either party to terminate the agreement if the closing has not occurred by March 20, 2025. We have agreed to pay a termination fee of $75 million if the agreement is terminated in certain circumstances and certain regulatory approvals are not obtained. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Cash Equivalents | Cash equivalents include highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes our revenue by product and by geography (based on destination of our shipment) for the three and six months ended June 30, 2023 and 2022: Ammonia Granular Urea UAN AN Other Total (in millions) Three months ended June 30, 2023 North America $ 460 $ 460 $ 463 $ 65 $ 120 $ 1,568 Europe and other 65 — 85 39 18 207 Total revenue $ 525 $ 460 $ 548 $ 104 $ 138 $ 1,775 Three months ended June 30, 2022 North America $ 987 $ 816 $ 877 $ 76 $ 180 $ 2,936 Europe and other 128 17 99 177 32 453 Total revenue $ 1,115 $ 833 $ 976 $ 253 $ 212 $ 3,389 Six months ended June 30, 2023 North America $ 790 $ 1,035 $ 982 $ 139 $ 246 $ 3,192 Europe and other 159 36 233 124 43 595 Total revenue $ 949 $ 1,071 $ 1,215 $ 263 $ 289 $ 3,787 Six months ended June 30, 2022 North America $ 1,570 $ 1,552 $ 1,890 $ 159 $ 333 $ 5,504 Europe and other 185 46 101 317 104 753 Total revenue $ 1,755 $ 1,598 $ 1,991 $ 476 $ 437 $ 6,257 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Summary of net earnings per share | Net earnings per share were computed as follows: Three months ended Six months ended 2023 2022 2023 2022 (in millions, except per share amounts) Net earnings attributable to common stockholders $ 527 $ 1,165 $ 1,087 $ 2,048 Basic earnings per common share: Weighted-average common shares outstanding 194.6 208.2 195.4 208.4 Net earnings attributable to common stockholders $ 2.71 $ 5.59 $ 5.56 $ 9.83 Diluted earnings per common share: Weighted-average common shares outstanding 194.6 208.2 195.4 208.4 Dilutive common shares—stock-based awards 0.4 0.7 0.5 1.0 Diluted weighted-average common shares outstanding 195.0 208.9 195.9 209.4 Net earnings attributable to common stockholders $ 2.70 $ 5.58 $ 5.55 $ 9.78 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: June 30, December 31, (in millions) Finished goods $ 280 $ 437 Raw materials, spare parts and supplies 39 37 Total inventories $ 319 $ 474 |
Property, Plant and Equipment_2
Property, Plant and Equipment-Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Components of property, plant and equipment-net | Property, plant and equipment—net consists of the following: June 30, December 31, (in millions) Land $ 114 $ 113 Machinery and equipment 12,740 12,633 Buildings and improvements 923 914 Construction in progress 303 203 Property, plant and equipment (1) 14,080 13,863 Less: Accumulated depreciation and amortization 7,862 7,426 Property, plant and equipment—net $ 6,218 $ 6,437 _______________________________________________________________________________ |
Summary of plant turnaround activity | Six months ended 2023 2022 (in millions) Net capitalized turnaround costs as of January 1 $ 312 $ 355 Additions 47 26 Depreciation (62) (70) Impairment related to U.K. operations — (7) Effect of exchange rate changes 1 (4) Net capitalized turnaround costs as of June 30 $ 298 $ 300 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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: June 30, 2023 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 183 $ — $ — $ 183 Cash equivalents: U.S. and Canadian government obligations 2,792 — — 2,792 Other debt securities 244 — — 244 Total cash and cash equivalents $ 3,219 $ — $ — $ 3,219 Nonqualified employee benefit trusts 16 1 — 17 December 31, 2022 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 153 $ — $ — $ 153 Cash equivalents: U.S. and Canadian government obligations 1,902 — — 1,902 Other debt securities 268 — — 268 Total cash and cash equivalents $ 2,323 $ — $ — $ 2,323 Nonqualified employee benefit trusts 16 — — 16 |
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 June 30, 2023 and December 31, 2022 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value: June 30, 2023 Total Fair Quoted Prices Significant Significant (in millions) Cash equivalents $ 3,036 $ 3,036 $ — $ — Nonqualified employee benefit trusts 17 17 — — Derivative assets 9 — 9 — Derivative liabilities (9) — (9) — December 31, 2022 Total Fair Quoted Prices Significant Significant (in millions) Cash equivalents $ 2,170 $ 2,170 $ — $ — Nonqualified employee benefit trusts 16 16 — — Derivative assets 12 — 12 — Derivative liabilities (85) — (85) — |
Schedule of carrying amounts and estimated fair values of financial instruments | The carrying amount and estimated fair value of our financial instruments are as follows: June 30, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value (in millions) Long-term debt $ 2,967 $ 2,767 $ 2,965 $ 2,764 |
Financing Agreements (Tables)
Financing Agreements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Components of long-term debt | Long-term debt presented on our consolidated balance sheets as of June 30, 2023 and December 31, 2022 consisted of the following debt securities issued by CF Industries: Effective Interest Rate June 30, 2023 December 31, 2022 Principal Carrying Amount (1) Principal Carrying Amount (1) (in millions) Public Senior Notes: 5.150% due March 2034 5.293% 750 741 750 741 4.950% due June 2043 5.040% 750 742 750 742 5.375% due March 2044 5.478% 750 741 750 740 Senior Secured Notes: 4.500% due December 2026 (2) 4.783% 750 743 750 742 Total long-term debt $ 3,000 $ 2,967 $ 3,000 $ 2,965 _______________________________________________________________________________ (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $7 million as of both June 30, 2023 and December 31, 2022, and total deferred debt issuance costs were $26 million and $28 million as of June 30, 2023 and December 31, 2022, respectively. (2) Effective August 23, 2021, these notes are no longer secured, in accordance with the terms of the applicable indenture. |
Interest Expense (Tables)
Interest Expense (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Interest Expense [Abstract] | |
Schedule of interest expense | Details of interest expense are as follows: Three months ended Six months ended 2023 2022 2023 2022 (in millions) Interest on borrowings (1) $ 37 $ 38 $ 74 $ 80 Fees on financing agreements (1) 2 2 4 4 Interest on tax liabilities (2) (2) 42 — 240 Interest capitalized (1) — (2) (1) Total interest expense $ 36 $ 82 $ 76 $ 323 _______________________________________________________________________________ (1) See Note 10—Financing Agreements for additional information. (2) See Note 9—Income Taxes for additional information. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | The effect of derivatives in our consolidated statements of operations is shown in the table below. Gain (loss) recognized in income Three months ended Six months ended Location 2023 2022 2023 2022 (in millions) Unrealized net gains on natural gas derivatives Cost of sales $ — $ 17 $ 72 $ 50 Realized net (losses) gains on natural gas derivatives Cost of sales — (9) (118) 8 Net derivative gains (losses) $ — $ 8 $ (46) $ 58 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of derivatives on our consolidated balance sheets are shown below. As of June 30, 2023 and December 31, 2022, none of our derivative instruments were designated as hedging instruments. See Note 8—Fair Value Measurements for additional information on derivative fair values. Asset Derivatives Liability Derivatives Balance Sheet Location June 30, December 31, 2022 Balance Sheet June 30, December 31, 2022 (in millions) (in millions) Natural gas derivatives Other current assets $ 9 $ 12 Other current liabilities $ (9) $ (85) |
Offsetting Liabilities | The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of June 30, 2023 and December 31, 2022: Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial Cash collateral received (pledged) Net (in millions) June 30, 2023 Total derivative assets $ 9 $ — $ — $ 9 Total derivative liabilities (9) — — (9) Net derivative liabilities $ — $ — $ — $ — December 31, 2022 Total derivative assets $ 12 $ — $ — $ 12 Total derivative liabilities (85) — — (85) Net derivative liabilities $ (73) $ — $ — $ (73) _______________________________________________________________________________ (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. |
Offsetting Assets | The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of June 30, 2023 and December 31, 2022: Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial Cash collateral received (pledged) Net (in millions) June 30, 2023 Total derivative assets $ 9 $ — $ — $ 9 Total derivative liabilities (9) — — (9) Net derivative liabilities $ — $ — $ — $ — December 31, 2022 Total derivative assets $ 12 $ — $ — $ 12 Total derivative liabilities (85) — — (85) Net derivative liabilities $ (73) $ — $ — $ (73) _______________________________________________________________________________ (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 Interest (Tables
Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | A reconciliation of the beginning and ending balances of noncontrolling interest and distributions payable to noncontrolling interest in our consolidated balance sheets is provided below. 2023 2022 (in millions) Noncontrolling interest: Balance as of January 1 $ 2,802 $ 2,830 Earnings attributable to noncontrolling interest 169 342 Declaration of distributions payable (255) (247) Balance as of June 30 $ 2,716 $ 2,925 Distributions payable to noncontrolling interest: Balance as of January 1 $ — $ — Declaration of distributions payable 255 247 Distributions to noncontrolling interest (255) (247) Balance as of June 30 $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of changes to AOCI | Changes to accumulated other comprehensive loss and the impact on other comprehensive income (loss) are as follows: Foreign Unrealized Defined Accumulated (in millions) Balance as of December 31, 2022 $ (179) $ 3 $ (54) $ (230) Gain arising during the period — — 5 5 Effect of exchange rate changes and deferred taxes 30 — (4) 26 Balance as of June 30, 2023 $ (149) $ 3 $ (53) $ (199) Balance as of December 31, 2021 $ (141) $ 4 $ (120) $ (257) Gain arising during the period — — 3 3 Reclassification to earnings — — 2 2 Effect of exchange rate changes and deferred taxes (40) — 7 (33) Balance as of June 30, 2022 $ (181) $ 4 $ (108) $ (285) |
Class of Treasury Stock | The following table summarizes the share repurchases under the 2022 Share Repurchase Program and the 2021 Share Repurchase Program. 2022 Share Repurchase Program 2021 Share Repurchase Program Shares Amounts (1) Shares Amounts (1) (in millions) Shares repurchased in 2022: First quarter — $ — 1.3 $ 100 Second quarter — — 5.3 490 Third quarter — — 6.1 532 Fourth quarter — — 2.2 223 Total shares repurchased in 2022 — — 14.9 1,345 Shares repurchased as of December 31, 2022 — $ — 14.9 $ 1,345 Shares repurchased in 2023: First quarter — $ — 1.1 $ 75 Second quarter 0.8 50 1.2 80 Total shares repurchased in 2023 0.8 50 2.3 155 Shares repurchased as of June 30, 2023 0.8 $ 50 17.2 $ 1,500 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
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 and six months ended June 30, 2023 and 2022 are presented in the table below. Ammonia Granular Urea (1) UAN (1) AN (1) Other (1) Consolidated (in millions) Three months ended June 30, 2023 Net sales $ 525 $ 460 $ 548 $ 104 $ 138 $ 1,775 Cost of sales 303 222 289 81 76 971 Gross margin $ 222 $ 238 $ 259 $ 23 $ 62 804 Total other operating costs and expenses 77 Equity in earnings of operating affiliate 7 Operating earnings $ 734 Three months ended June 30, 2022 Net sales $ 1,115 $ 833 $ 976 $ 253 $ 212 $ 3,389 Cost of sales 442 360 343 151 102 1,398 Gross margin $ 673 $ 473 $ 633 $ 102 $ 110 1,991 Total other operating costs and expenses (2) 241 Equity in earnings of operating affiliate 28 Operating earnings $ 1,778 Six months ended June 30, 2023 Net sales $ 949 $ 1,071 $ 1,215 $ 263 $ 289 $ 3,787 Cost of sales 583 549 635 185 168 2,120 Gross margin $ 366 $ 522 $ 580 $ 78 $ 121 1,667 Total other operating costs and expenses 131 Equity in earnings of operating affiliate 24 Operating earnings $ 1,560 Six months ended June 30, 2022 Net sales $ 1,755 $ 1,598 $ 1,991 $ 476 $ 437 $ 6,257 Cost of sales 722 630 688 322 206 2,568 Gross margin $ 1,033 $ 968 $ 1,303 $ 154 $ 231 3,689 Total other operating costs and expenses (2) 307 Equity in earnings of operating affiliate 54 Operating earnings $ 3,436 _______________________________________________________________________________ (1) The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results. |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Net sales | $ 1,775 | $ 3,389 | $ 3,787 | $ 6,257 | |
Customer advances | $ 9 | $ 9 | $ 229 |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Product and by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,775 | $ 3,389 | $ 3,787 | $ 6,257 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,568 | 2,936 | 3,192 | 5,504 |
Europe and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 207 | 453 | 595 | 753 |
Ammonia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 525 | 1,115 | 949 | 1,755 |
Ammonia | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 460 | 987 | 790 | 1,570 |
Ammonia | Europe and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 65 | 128 | 159 | 185 |
Granular Urea | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 460 | 833 | 1,071 | 1,598 |
Granular Urea | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 460 | 816 | 1,035 | 1,552 |
Granular Urea | Europe and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 17 | 36 | 46 |
UAN | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 548 | 976 | 1,215 | 1,991 |
UAN | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 463 | 877 | 982 | 1,890 |
UAN | Europe and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 85 | 99 | 233 | 101 |
AN | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 104 | 253 | 263 | 476 |
AN | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 65 | 76 | 139 | 159 |
AN | Europe and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 39 | 177 | 124 | 317 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 138 | 212 | 289 | 437 |
Other | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 120 | 180 | 246 | 333 |
Other | Europe and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 18 | $ 32 | $ 43 | $ 104 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Amount of remaining performance obligation | $ 845 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Performance Obligation, description of returns and other similar obligations, unfulfilled minimum contractual right of payment | $ 255 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 27% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 36% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 36% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 36% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 17% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 17% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 17% |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to common stockholders | $ 527 | $ 1,165 | $ 1,087 | $ 2,048 |
Basic earnings per common share: | ||||
Weighted-average common shares outstanding | 194.6 | 208.2 | 195.4 | 208.4 |
Net earnings attributable to common stockholders (in dollars per share) | $ 2.71 | $ 5.59 | $ 5.56 | $ 9.83 |
Diluted earnings per common share: | ||||
Weighted-average common shares outstanding | 194.6 | 208.2 | 195.4 | 208.4 |
Dilutive common shares—stock options (in shares) | 0.4 | 0.7 | 0.5 | 1 |
Diluted weighted-average common shares outstanding | 195 | 208.9 | 195.9 | 209.4 |
Net earnings attributable to common stockholders diluted (in dollars per share) | $ 2.70 | $ 5.58 | $ 5.55 | $ 9.78 |
Antidilutive securities excluded from computation of EPS (in shares) | 0 | 0 | 0 | 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 280 | $ 437 |
Raw materials, spare parts and supplies | 39 | 37 |
Total inventories | $ 319 | $ 474 |
United Kingdom Operations Res_2
United Kingdom Operations Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
U.K. operations restructuring | $ 162 | |||
U.K. long-lived and intangible asset impairment | $ 0 | 152 | $ 0 | $ 152 |
U.K. operations restructuring | $ 0 | 10 | $ 2 | $ 10 |
Trade names | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 8 | |||
Ince Facility | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of property plant and equipment | 135 | |||
Asset Retirement Obligation, Period Increase (Decrease) | 9 | |||
Ince Facility | Raw Material and Spare Parts | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment charges | $ 9 |
Property, Plant and Equipment_3
Property, Plant and Equipment-Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment-Net | ||||||
Gross property plant and equipment | $ 14,080 | $ 14,080 | $ 13,863 | |||
Less: Accumulated depreciation and amortization | 7,862 | 7,862 | 7,426 | |||
Net property, plant and equipment | 6,218 | 6,218 | 6,437 | |||
Construction in progress expenditures incurred but not yet paid | 63 | $ 51 | 53 | $ 35 | ||
Depreciation and amortization | 218 | $ 219 | 422 | 424 | ||
Land | ||||||
Property, Plant and Equipment-Net | ||||||
Gross property plant and equipment | 114 | 114 | 113 | |||
Machinery and equipment | ||||||
Property, Plant and Equipment-Net | ||||||
Gross property plant and equipment | 12,740 | 12,740 | 12,633 | |||
Changes in plant turnaround activity | ||||||
Balance at the beginning of the period | 312 | 355 | 355 | |||
Additions | 47 | 26 | ||||
Depreciation | (62) | (70) | ||||
Capitalized Plant Turnaround, Impairment | 0 | (7) | ||||
Effect of exchange rate changes | 1 | (4) | ||||
Balance at the end of the period | 298 | $ 300 | 298 | $ 300 | 312 | $ 355 |
Buildings and improvements | ||||||
Property, Plant and Equipment-Net | ||||||
Gross property plant and equipment | 923 | 923 | 914 | |||
Construction in progress | ||||||
Property, Plant and Equipment-Net | ||||||
Gross property plant and equipment | $ 303 | $ 303 | $ 203 |
Equity Method Investment-Narrat
Equity Method Investment-Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity method investments | ||||
Obligation to purchase ammonia (as a percent) | 50% | |||
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 | 10 years | |||
Point Lisas Nitrogen Limited (PLNL) | Operating equity method investments | ||||
Equity method investments | ||||
Ownership interest (as a percent) | 50% | 50% | ||
Equity Method Investment | $ 72 | $ 72 | ||
Carrying value of investments in excess of the entity's share of the affiliates' book value | 32 | 32 | ||
Purchases of ammonia from PLNL | $ 36 | $ 77 | $ 95 | $ 151 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Cash | $ 183 | $ 153 |
Cash and Cash Equivalents | ||
Cash equivalents: | ||
Cost Basis | 3,219 | 2,323 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 3,219 | 2,323 |
U.S. and Canadian government obligations | Cash and Cash Equivalents | ||
Cash equivalents: | ||
Cost Basis | 2,792 | 1,902 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 2,792 | 1,902 |
Other debt securities | Cash and Cash Equivalents | ||
Cash equivalents: | ||
Cost Basis | 244 | 268 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 244 | 268 |
Nonqualified employee benefit trusts | ||
Cash equivalents: | ||
Cost Basis | 16 | 16 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 17 | $ 16 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 2) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Estimate of Fair Value Measurement | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value of long-term debt, including current portion | $ 2,767 | $ 2,764 |
Reported Value Measurement | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value of long-term debt, including current portion | 2,967 | 2,965 |
Recurring basis | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 3,036 | 2,170 |
Nonqualified employee benefit trusts | 17 | 16 |
Derivative Liability | (9) | (85) |
Derivative Asset | 9 | 12 |
Recurring basis | Quoted Prices in Active Markets (Level 1) | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 3,036 | 2,170 |
Nonqualified employee benefit trusts | 17 | 16 |
Derivative Liability | 0 | 0 |
Derivative Asset | 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 |
Nonqualified employee benefit trusts | 0 | 0 |
Derivative Liability | (9) | (85) |
Derivative Asset | 9 | 12 |
Recurring basis | Fair Value, Inputs (Level 3) | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 0 | 0 |
Nonqualified employee benefit trusts | 0 | 0 |
Derivative Liability | 0 | 0 |
Derivative Asset | $ 0 | $ 0 |
Income Taxes Incomes Taxes (Det
Income Taxes Incomes Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Loss Carryforwards [Line Items] | ||||
Income tax provision (benefit) | $ 134 | $ 357 | $ 303 | $ 758 |
Effective Income Tax Rate Reconciliation, Percent | 18.20% | 21.10% | 19.50% | 24.10% |
Less: Net earnings attributable to noncontrolling interest | $ 79 | $ 174 | $ 169 | $ 342 |
Effective Income Tax Rate Reconciliation, period increase/(decrease) due to noncontrolling interest | 2.10% | 2.40% | 2.30% | 2.90% |
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Amount | $ 22 | |||
Income Tax Examination, Interest Expense | $ 5 | |||
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Amount | 2 | |||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 740 | 1,696 | $ 1,559 | 3,148 |
Income Taxes Paid | 224 | |||
Foreign Tax Authority | Canada Revenue Agency [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Amount | 78 | |||
Foreign Tax Authority | Canada Revenue Agency [Member] | Tax Years 2006-2011 | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 129 | 129 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 104 | 104 | ||
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Amount | 78 | |||
Foreign Tax Authority | Canada Revenue Agency [Member] | Tax Years 2012 and After | ||||
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 314 | |||
Income Taxes Receivable, Noncurrent | 359 | 359 | ||
Accrued Income Taxes, Noncurrent | 30 | 30 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 116 | 116 | ||
Foreign Tax Authority | Canada Revenue Agency [Member] | Tax Year 2012 and After | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Tax Examination, Interest Expense | 23 | 86 | ||
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Amount | 21 | 19 | ||
Income Tax Examination, Estimate of Possible Loss | 26 | |||
Unrecognized Tax Benefits, Estimated Interest on Income Taxes Accrued, Net of Taxes | 93 | 93 | ||
Income Tax Examination, Interest Expense, Net of Taxes | 24 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income Taxes Receivable | $ 51 | $ 51 |
Financing Agreements (Details)
Financing Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instruments | ||
Principal | $ 3,000 | $ 3,000 |
Carrying amount | 2,967 | 2,965 |
Long-term debt | 2,967 | 2,965 |
CF Industries | ||
Debt Instruments | ||
Unamortized debt discount | 7 | 7 |
Total deferred debt issuance costs | $ 26 | $ 28 |
CF Industries | Senior Notes | Senior notes 5.150% due 2034 | ||
Financing agreements | ||
Interest rate (as a percent) | 5.15% | 5.15% |
Debt Instruments | ||
Effective Interest Rate (percent) | 5.293% | 5.293% |
Principal | $ 750 | $ 750 |
Carrying amount | $ 741 | $ 741 |
CF Industries | Senior Notes | Senior notes 4.950% due 2043 | ||
Financing agreements | ||
Interest rate (as a percent) | 4.95% | 4.95% |
Debt Instruments | ||
Effective Interest Rate (percent) | 5.04% | 5.04% |
Principal | $ 750 | $ 750 |
Carrying amount | $ 742 | $ 742 |
CF Industries | Senior Notes | Senior notes 5.375% due 2044 | ||
Financing agreements | ||
Interest rate (as a percent) | 5.375% | 5.375% |
Debt Instruments | ||
Effective Interest Rate (percent) | 5.478% | 5.478% |
Principal | $ 750 | $ 750 |
Carrying amount | $ 741 | $ 740 |
CF Industries | Senior Notes | Senior Notes 4.500% Due 2026 | ||
Financing agreements | ||
Interest rate (as a percent) | 4.50% | 4.50% |
Debt Instruments | ||
Effective Interest Rate (percent) | 4.783% | 4.783% |
Principal | $ 750 | $ 750 |
Carrying amount | $ 743 | $ 742 |
Financing Agreements - Narrativ
Financing Agreements - Narrative (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 05, 2019 | Jul. 29, 2016 |
Financing agreements | ||||
Principal | $ 3,000,000,000 | $ 3,000,000,000 | ||
Letter of Credit | Letter of Credit | ||||
Financing agreements | ||||
Maximum borrowing capacity | 350,000,000 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | 205,000,000 | |||
CF Industries | Credit Agreement | ||||
Financing agreements | ||||
Available credit | 750,000,000 | |||
Outstanding letters of credit | 0 | |||
Long-term Line of Credit | $ 0 | $ 0 | ||
CF Industries | Amendment No. 4 to the Third Amended and Restated Revolving Credit Agreement | Letter of Credit | Revolving Credit Facility | ||||
Financing agreements | ||||
Maximum borrowing capacity | $ 750,000,000 | |||
CF Industries | July 2016 Credit Agreement Amendment | Letter of Credit | Letter of Credit | ||||
Financing agreements | ||||
Maximum borrowing capacity | $ 125,000,000 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest Expense [Abstract] | ||||
Interest on borrowings(1) | $ 37 | $ 38 | $ 74 | $ 80 |
Fees on financing agreements(1) | 2 | 2 | 4 | 4 |
Interest on tax liabilities(2) | (2) | 42 | 0 | 240 |
Interest capitalized | (1) | 0 | (2) | (1) |
Interest expense | $ 36 | $ 82 | $ 76 | $ 323 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 8 | $ (46) | $ 58 |
Energy Related Derivative | Not Designated as Hedging Instrument | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) on Derivatives | 0 | 17 | 72 | 50 |
Gain (Loss) on Sale of Derivatives | $ 0 | $ (9) | $ (118) | $ 8 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details 2) MMBTU in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) MMBTU | Dec. 31, 2022 USD ($) MMBTU | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Notional Nonmonetary Amount of Price Risk Derivative Instruments Not Designated as Hedging Instruments | MMBTU | 43.8 | 66.3 |
Percentage of Consumption Hedged by Derivatives | 36% | |
Fair values of derivatives on consolidated balance sheets | ||
Cash collateral on deposit with derivative counterparties | $ 0 | $ 0 |
Aggregate fair value of the derivative instruments with credit risk related contingent features in a net liability position | 0 | 73,000,000 |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Not Designated as Hedging Instrument | ||
Fair values of derivatives on consolidated balance sheets | ||
Derivative Asset | 9,000,000 | 12,000,000 |
Derivative Liability | 9,000,000 | 85,000,000 |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Not Designated as Hedging Instrument | Energy Related Derivative | ||
Fair values of derivatives on consolidated balance sheets | ||
Derivative Asset | 9,000,000 | 12,000,000 |
Derivative Liability | 9,000,000 | $ 85,000,000 |
Designated as Hedging Instrument | ||
Fair values of derivatives on consolidated balance sheets | ||
Derivative Asset | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 3) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Cash collateral on deposit with derivative counterparties | $ 0 | $ 0 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset | 9,000,000 | 12,000,000 |
Derivative, Collateral, Obligation to Return Securities | 0 | 0 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 9,000,000 | 12,000,000 |
Derivative Liability | (9,000,000) | (85,000,000) |
Derivative Liability, Not Subject to Master Netting Arrangement Deduction | 0 | 0 |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Derivative Liability, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | (9,000,000) | (85,000,000) |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | (73,000,000) |
Net Derivative (Asset) Liability, Not Subject to Master Netting Arrangement Deduction | 0 | 0 |
Derivative, Collateral, Obligation to Return Cash (Right to Reclaim Cash) | 0 | 0 |
Net Derivative Asset (Liability), Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | $ 0 | $ (73,000,000) |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) $ in Millions | 6 Months Ended | |||
Jul. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) T | Jun. 30, 2022 USD ($) | Feb. 01, 2016 | |
Noncontrolling interest | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | $ 255 | $ 247 | ||
Subsequent Event | ||||
Noncontrolling interest | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | $ 204 | |||
CF Industries Nitrogen, LLC | ||||
Noncontrolling interest | ||||
Maximum Annual Granular Urea Tons Eligible for Purchase | T | 1,100,000 | |||
Maximum Annual UAN Tons Eligible for Purchase | T | 580,000 | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | $ 255 | $ 247 | ||
CHS Inc. | CF Industries Nitrogen, LLC | ||||
Noncontrolling interest | ||||
Percentage of ownership interest held by outside investors | 11% |
Noncontrolling Interest (Deta_2
Noncontrolling Interest (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Noncontrolling interest | ||||
Beginning balance | $ 2,802 | |||
Earnings attributable to noncontrolling interests | $ 79 | $ 174 | 169 | $ 342 |
Distribution declared to noncontrolling interest | (255) | (247) | ||
Ending balance | 2,716 | 2,716 | ||
CF Industries Nitrogen, LLC | ||||
Noncontrolling interest | ||||
Beginning balance | 2,802 | 2,830 | ||
Earnings attributable to noncontrolling interests | 169 | 342 | ||
Distribution declared to noncontrolling interest | (255) | (247) | ||
Ending balance | 2,716 | 2,925 | 2,716 | 2,925 |
Distributions payable to noncontrolling interests: | ||||
Beginning balance | 0 | 0 | ||
Declaration of distributions payable | 255 | 247 | ||
Distributions to noncontrolling interest | (255) | (247) | ||
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | $ (230) | |
Balance at the end of the period | (199) | |
Foreign Currency Translation Adjustment | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | (179) | $ (141) |
Gain arising during the period | 0 | 0 |
Reclassification to earnings | 0 | |
Effect of exchange rate changes and deferred taxes | 30 | (40) |
Balance at the end of the period | (149) | (181) |
Unrealized Gain on Derivatives | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | 3 | 4 |
Gain arising during the period | 0 | 0 |
Reclassification to earnings | 0 | |
Effect of exchange rate changes and deferred taxes | 0 | 0 |
Balance at the end of the period | 3 | 4 |
Defined Benefit Plans | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | (54) | (120) |
Gain arising during the period | 5 | 3 |
Reclassification to earnings | 2 | |
Effect of exchange rate changes and deferred taxes | (4) | 7 |
Balance at the end of the period | (53) | (108) |
Accumulated Other Comprehensive Loss | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | (230) | (257) |
Gain arising during the period | 5 | 3 |
Reclassification to earnings | (2) | |
Effect of exchange rate changes and deferred taxes | 26 | (33) |
Balance at the end of the period | $ (199) | $ (285) |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchased during period (in shares) | 2,300 | 6,600 | ||||||||
Amount of stock repurchased during period | $ 155 | $ 590 | ||||||||
stock repurchase accrued but unpaid | $ 14 | |||||||||
2022 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchased during period (in shares) | 800 | 0 | 0 | 0 | 0 | 0 | 800 | 0 | 800 | |
Amount of stock repurchased during period | $ 50 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 50 | $ 0 | $ 50 | |
2021 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchased during period (in shares) | 1,200 | 1,100 | 2,200 | 6,100 | 5,300 | 1,300 | 2,300 | 14,900 | 17,200 | |
Amount of stock repurchased during period | $ 80 | $ 75 | $ 223 | $ 532 | $ 490 | $ 100 | $ 155 | $ 1,345 | $ 1,500 |
Stockholders' Equity (Details 3
Stockholders' Equity (Details 3) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2023 | Nov. 02, 2022 | Nov. 03, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Authorized amount of stock repurchase program | $ 3,000 | $ 1,500 | ||||||||||
Stock repurchased during period (in shares) | 2,300 | 6,600 | ||||||||||
Amount of stock repurchased during period | $ 155 | $ 590 | ||||||||||
2022 Share Repurchase Program | ||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Stock repurchased during period (in shares) | 800 | 0 | 0 | 0 | 0 | 0 | 800 | 0 | 800 | |||
Amount of stock repurchased during period | $ 50 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 50 | $ 0 | $ 50 |
Segment Disclosures (Details)
Segment Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment data | ||||
Net sales | $ 1,775 | $ 3,389 | $ 3,787 | $ 6,257 |
Cost of sales | 971 | 1,398 | 2,120 | 2,568 |
Gross margin | 804 | 1,991 | 1,667 | 3,689 |
Total other operating costs and expenses | 77 | 241 | 131 | 307 |
Equity in earnings of operating affiliate | 7 | 28 | 24 | 54 |
Operating earnings | 734 | 1,778 | 1,560 | 3,436 |
Ammonia | ||||
Segment data | ||||
Net sales | 525 | 1,115 | 949 | 1,755 |
Granular Urea | ||||
Segment data | ||||
Net sales | 460 | 833 | 1,071 | 1,598 |
UAN | ||||
Segment data | ||||
Net sales | 548 | 976 | 1,215 | 1,991 |
AN | ||||
Segment data | ||||
Net sales | 104 | 253 | 263 | 476 |
Operating Segments | Ammonia | ||||
Segment data | ||||
Net sales | 525 | 1,115 | 949 | 1,755 |
Cost of sales | 303 | 442 | 583 | 722 |
Gross margin | 222 | 673 | 366 | 1,033 |
Operating Segments | Granular Urea | ||||
Segment data | ||||
Net sales | 460 | 833 | 1,071 | 1,598 |
Cost of sales | 222 | 360 | 549 | 630 |
Gross margin | 238 | 473 | 522 | 968 |
Operating Segments | UAN | ||||
Segment data | ||||
Net sales | 548 | 976 | 1,215 | 1,991 |
Cost of sales | 289 | 343 | 635 | 688 |
Gross margin | 259 | 633 | 580 | 1,303 |
Operating Segments | AN | ||||
Segment data | ||||
Net sales | 104 | 253 | 263 | 476 |
Cost of sales | 81 | 151 | 185 | 322 |
Gross margin | 23 | 102 | 78 | 154 |
Operating Segments | Other | ||||
Segment data | ||||
Net sales | 138 | 212 | 289 | 437 |
Cost of sales | 76 | 102 | 168 | 206 |
Gross margin | $ 62 | $ 110 | $ 121 | $ 231 |
Agreement to Purchase Ammonia_2
Agreement to Purchase Ammonia Production Facility (Details) - Ammonia Production Facility T in Thousands, $ in Millions | Mar. 20, 2023 USD ($) T |
Asset Acquisition [Line Items] | |
Asset Acquisition, Price of Acquisition, Expected | $ 1,675 |
Asset acquisition nameplate capacity | T | 880 |
Asset acquisition supply commitment, obligation | $ 425 |
Asset acquisition supply commitment, minimum annual commitment | T | 200 |
Asset acquisition, consideration transferred, termination fee | $ 75 |