Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 2375 Waterview Drive | |
Entity Address, Postal Zip Code | 60062 | |
Entity Address, City or Town | Northbrook | |
Entity Address, State or Province | IL | |
City Area Code | 847 | |
Local Phone Number | 405-2400 | |
Title of 12(b) Security | common stock, par value $0.01 per share | |
Trading Symbol | CF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 182,782,174 | |
Entity Central Index Key | 0001324404 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 1,470 | $ 2,012 |
Cost of sales | 1,061 | 1,149 |
Gross margin | 409 | 863 |
Selling, general and administrative expenses | 88 | 74 |
U.K. operations restructuring | 0 | 2 |
Acquisition and integration costs | 3 | 13 |
Other operating—net | 17 | (35) |
Total other operating costs and expenses | 108 | 54 |
Equity in earnings of operating affiliate | 2 | 17 |
Operating earnings | 303 | 826 |
Interest expense | 37 | 40 |
Interest income | (30) | (30) |
Other non-operating—net | (4) | (3) |
Earnings before income taxes | 300 | 819 |
Income tax provision | 62 | 169 |
Net earnings | 238 | 650 |
Less: Net earnings attributable to noncontrolling interest | 44 | 90 |
Net earnings attributable to common stockholders | $ 194 | $ 560 |
Net earnings per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ 1.03 | $ 2.86 |
Diluted (in dollars per share) | $ 1.03 | $ 2.85 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 187.6 | 196.2 |
Diluted (in shares) | 188.1 | 196.9 |
Dividends declared per common share (in dollars per share) | $ 0.50 | $ 0.40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 238 | $ 650 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment—net of taxes | (16) | 7 |
Defined benefit plans—net of taxes | 0 | (1) |
Total other comprehensive income | (16) | 6 |
Comprehensive income | 222 | 656 |
Less: Comprehensive income attributable to noncontrolling interest | 44 | 90 |
Comprehensive income attributable to common stockholders | $ 178 | $ 566 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,773 | $ 2,032 |
Accounts receivable—net | 535 | 505 |
Inventories | 271 | 299 |
Prepaid income taxes | 102 | 167 |
Other current assets | 38 | 47 |
Total current assets | 2,719 | 3,050 |
Property, plant and equipment—net | 6,982 | 7,141 |
Investment in affiliate | 29 | 26 |
Goodwill | 2,495 | 2,495 |
Intangible assets—net | 532 | 538 |
Operating lease right-of-use assets | 240 | 259 |
Other assets | 864 | 867 |
Total assets | 13,861 | 14,376 |
Current liabilities: | ||
Accounts payable and accrued expenses | 501 | 520 |
Income taxes payable | 0 | 12 |
Customer advances | 104 | 130 |
Current operating lease liabilities | 77 | 96 |
Other current liabilities | 8 | 42 |
Total current liabilities | 690 | 800 |
Long-term debt | 2,969 | 2,968 |
Deferred income taxes | 985 | 999 |
Operating lease liabilities | 171 | 168 |
Supply contract liability | 747 | 754 |
Other liabilities | 303 | 314 |
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, 2024—188,905,959 shares issued and 2023—188,188,401 shares issued | 2 | 2 |
Paid-in capital | 1,403 | 1,389 |
Retained earnings | 4,634 | 4,535 |
Treasury stock—at cost, 2024—4,561,599 shares and 2023—0 shares | (374) | 0 |
Accumulated other comprehensive loss | (225) | (209) |
Total stockholders’ equity | 5,440 | 5,717 |
Noncontrolling interest | 2,556 | 2,656 |
Total equity | 7,996 | 8,373 |
Total liabilities and equity | $ 13,861 | $ 14,376 |
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 | 188,905,959 | 188,188,401 |
Treasury Stock, Shares | 4,561,599 | 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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 | 188,905,959 | 188,188,401 |
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 Income (Loss) | Noncontrolling Interest |
Balance at Dec. 31, 2022 | $ 7,853 | $ 5,051 | $ 2 | $ 0 | $ 1,412 | $ 3,867 | $ (230) | $ 2,802 |
Increase (decrease) in equity | ||||||||
Net earnings | 650 | 560 | 0 | 0 | 0 | 560 | 0 | 90 |
Less: Net earnings attributable to noncontrolling interest | 90 | |||||||
Net earnings attributable to common stockholders | 560 | |||||||
Other comprehensive income (loss) | 6 | 6 | 0 | 0 | 0 | 0 | 6 | 0 |
Purchases of treasury stock | (75) | (75) | 0 | (75) | 0 | 0 | 0 | 0 |
Acquisition of treasury stock under employee stock plans | (22) | (22) | 0 | (22) | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 12 | 12 | 0 | 0 | 12 | 0 | 0 | 0 |
Cash dividends | (79) | (79) | 0 | 0 | 0 | (79) | 0 | 0 |
Distribution declared to noncontrolling interest | (255) | 0 | 0 | 0 | 0 | 0 | 0 | (255) |
Balance at Mar. 31, 2023 | 8,090 | 5,453 | 2 | (97) | 1,424 | 4,348 | (224) | 2,637 |
Balance at Dec. 31, 2023 | 8,373 | 5,717 | 2 | 0 | 1,389 | 4,535 | (209) | 2,656 |
Increase (decrease) in equity | ||||||||
Net earnings | 238 | 194 | 0 | 0 | 0 | 194 | 0 | 44 |
Less: Net earnings attributable to noncontrolling interest | 44 | |||||||
Net earnings attributable to common stockholders | 194 | |||||||
Other comprehensive income (loss) | (16) | (16) | 0 | 0 | 0 | 0 | (16) | 0 |
Purchases of treasury stock | (351) | (351) | 0 | (351) | 0 | 0 | 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 | 1 | 1 | 0 | 0 | 1 | 0 | 0 | 0 |
Stock-based compensation expense | 13 | 13 | 0 | 0 | 13 | 0 | 0 | 0 |
Cash dividends | (95) | (95) | 0 | 0 | 0 | (95) | 0 | 0 |
Distribution declared to noncontrolling interest | (144) | 0 | 0 | 0 | 0 | 0 | 0 | (144) |
Balance at Mar. 31, 2024 | $ 7,996 | $ 5,440 | $ 2 | $ (374) | $ 1,403 | $ 4,634 | $ (225) | $ 2,556 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Dividends declared per common share (in dollars per share) | $ 0.50 | $ 0.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Activities: | ||
Net earnings | $ 238 | $ 650 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 253 | 206 |
Deferred income taxes | (11) | (26) |
Stock-based compensation expense | 13 | 12 |
Unrealized net gain on natural gas derivatives | (33) | (72) |
Gain on sale of emission credits | 0 | (35) |
Loss on disposal of property, plant and equipment | 5 | 0 |
Undistributed earnings of affiliate—net of taxes | (2) | (7) |
Changes in assets and liabilities: | ||
Accounts receivable—net | (50) | 101 |
Inventories | 20 | 39 |
Accrued and prepaid income taxes | 61 | 153 |
Accounts payable and accrued expenses | (23) | (135) |
Customer advances | (25) | 55 |
Other—net | (1) | 6 |
Net cash provided by operating activities | 445 | 947 |
Investing Activities: | ||
Additions to property, plant and equipment | (98) | (69) |
Purchase of emission credits | (2) | 0 |
Proceeds from sale of emission credits | 0 | 35 |
Net cash used in investing activities | (100) | (34) |
Financing Activities: | ||
Dividends paid on common stock | (97) | (79) |
Distributions to noncontrolling interest | (144) | (255) |
Purchases of treasury stock | (339) | (54) |
Proceeds from issuances of common stock under employee stock plans | 1 | 0 |
Shares withheld for taxes | (23) | (22) |
Net cash provided by (used in) financing activities | (602) | (410) |
Effect of exchange rate changes on cash and cash equivalents | (2) | (1) |
(Decrease) increase in cash and cash equivalents | (259) | 502 |
Cash and cash equivalents at beginning of period | 2,032 | 2,323 |
Cash and cash equivalents at end of period | $ 1,773 | $ 2,825 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 low-carbon 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 to CF Industries Holdings, Inc. only 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, 2023, 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. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | New Accounting Standards In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU is intended to improve reportable segment disclosures through enhanced disclosures about significant segment expenses. The guidance in this ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact that our adoption of this ASU will have on the disclosures in our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU adds new guidance that further enhances income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact that our adoption of this ASU will have on the disclosures in our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | We track our revenue by product and by geography. See Note 16—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 months ended March 31, 2024 and 2023: Ammonia Granular Urea UAN AN Other Total (in millions) Three months ended March 31, 2024 North America $ 334 $ 403 $ 373 $ 48 $ 102 $ 1,260 Europe and other 68 4 52 66 20 210 Total revenue $ 402 $ 407 $ 425 $ 114 $ 122 $ 1,470 Three months ended March 31, 2023 North America $ 330 $ 575 $ 519 $ 74 $ 126 $ 1,624 Europe and other 94 36 148 85 25 388 Total revenue $ 424 $ 611 $ 667 $ 159 $ 151 $ 2,012 As of March 31, 2024 and December 31, 2023, we had $104 million and $130 million, respectively, in customer advances on our consolidated balance sheets. The revenue recognized during the three months ended March 31, 2024 and 2023 that was included in our customer advances at the beginning of each respective period amounted to approximately $110 million and $160 million, respectively. 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 March 31, 2024 and December 31, 2023 were not material. We have certain customer contracts with performance obligations where 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 March 31, 2024, 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 $2.1 billion. We expect to recognize approximately 23% of these performance obligations as revenue in the remainder of 2024, approximately 19% as revenue during 2025-2027, approximately 16% as revenue during 2028-2030, and the remainder as revenue thereafter. Subject to the terms and conditions of the applicable contracts, if these 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 $1.3 billion as of March 31, 2024. Other than the performance obligations described above, any performance obligations with our customers that were unfulfilled or partially filled at December 31, 2023 will be satisfied in 2024. |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net earnings per share were computed as follows: Three months ended 2024 2023 (in millions, except per share amounts) Net earnings attributable to common stockholders $ 194 $ 560 Basic earnings per common share: Weighted-average common shares outstanding 187.6 196.2 Net earnings attributable to common stockholders $ 1.03 $ 2.86 Diluted earnings per common share: Weighted-average common shares outstanding 187.6 196.2 Dilutive common shares—stock-based awards 0.5 0.7 Diluted weighted-average common shares outstanding 188.1 196.9 Net earnings attributable to common stockholders $ 1.03 $ 2.85 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 months ended March 31, 2024 and 2023. |
Acquisition of Waggaman Ammonia
Acquisition of Waggaman Ammonia Production Facility | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Agreement to Purchase Ammonia Production Facility | Acquisition of Waggaman Ammonia Production Facility On December 1, 2023, we acquired an ammonia production facility located in Waggaman, Louisiana, from Dyno Nobel Louisiana Ammonia, LLC (DNLA), a U.S. subsidiary of Australia-based Incitec Pivot Limited (IPL), pursuant to an asset purchase agreement with DNLA and IPL. The facility has a nameplate production capacity of 880,000 tons of ammonia annually. Our acquisition of the Waggaman facility is intended to expand our ammonia manufacturing and distribution capacity, including our ability to enable low-carbon ammonia production. In connection with the acquisition, we entered into 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 (the Supply Contract). Under the terms of the asset purchase agreement, $425 million of the purchase price of $1.675 billion, subject to adjustment, was allocated by the parties to the ammonia offtake agreement. We funded the balance of the purchase price with $1.223 billion of cash on hand. The consideration transferred reflects an estimated net working capital adjustment and other adjustments to the purchase price, which is subject to further adjustment pursuant to the terms of the asset purchase agreement. We expect any further purchase price adjustments required under the asset purchase agreement will not be material and will be completed in the second quarter of 2024. In the three months ended March 31, 2024 and 2023, we incurred $3 million of integration costs and $13 million of acquisition-related costs, respectively, related to the Waggaman acquisition, which are included in acquisition and integration costs in our consolidated statements of operations. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: March 31, December 31, (in millions) Finished goods $ 226 $ 256 Raw materials, spare parts and supplies 45 43 Total inventories $ 271 $ 299 |
Property, Plant and Equipment-N
Property, Plant and Equipment-Net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment-Net | Property, plant and equipment—net consists of the following: March 31, December 31, (in millions) Land $ 114 $ 114 Machinery and equipment 13,679 13,716 Buildings and improvements 1,015 1,020 Construction in progress 412 394 Property, plant and equipment (1) 15,220 15,244 Less: Accumulated depreciation and amortization 8,238 8,103 Property, plant and equipment—net $ 6,982 $ 7,141 _______________________________________________________________________________ (1) As of March 31, 2024 and December 31, 2023, we had property, plant and equipment that was accrued but unpaid of approximately $72 million and $68 million, respectively. As of March 31, 2023 and December 31, 2022, we had property, plant and equipment that was accrued but unpaid of approximately $45 million and $53 million, respectively. Depreciation and amortization related to property, plant and equipment was $252 million and $204 million for the three months ended March 31, 2024 and 2023, 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: Three months ended 2024 2023 (in millions) Net capitalized turnaround costs as of January 1 $ 352 $ 312 Additions 24 7 Depreciation (52) (31) Effect of exchange rate changes and other (1) — Net capitalized turnaround costs as of March 31 $ 323 $ 288 |
Equity Method Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, the total carrying value of our equity method investment in PLNL was $29 million. 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 $30 million and $59 million for the three months ended March 31, 2024 and 2023, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Our cash and cash equivalents and other investments consist of the following: March 31, 2024 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 190 $ — $ — $ 190 Cash equivalents: U.S. and Canadian government obligations 1,277 — — 1,277 Other debt securities 306 — — 306 Total cash and cash equivalents $ 1,773 $ — $ — $ 1,773 Nonqualified employee benefit trusts 16 1 — 17 December 31, 2023 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 208 $ — $ — $ 208 Cash equivalents: U.S. and Canadian government obligations 1,488 — — 1,488 Other debt securities 336 — — 336 Total cash and cash equivalents $ 2,032 $ — $ — $ 2,032 Nonqualified employee benefit trusts 16 1 — 17 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 and also in bank deposits. 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 March 31, 2024 and December 31, 2023 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value: March 31, 2024 Total Fair Quoted Prices Significant Significant (in millions) Cash equivalents $ 1,583 $ 1,583 $ — $ — Nonqualified employee benefit trusts 17 17 — — Derivative assets 1 — 1 — Derivative liabilities (2) — (2) — December 31, 2023 Total Fair Quoted Prices Significant Significant (in millions) Cash equivalents $ 1,824 $ 1,824 $ — $ — Nonqualified employee benefit trusts 17 17 — — Derivative assets 1 — 1 — Derivative liabilities (35) — (35) — Cash Equivalents Cash equivalents include highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less. As of March 31, 2024 and December 31, 2023, 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 13—Derivative Financial Instruments for additional information. Financial Instruments The carrying amount and estimated fair value of our financial instruments are as follows: March 31, 2024 December 31, 2023 Carrying Fair Value Carrying Fair Value (in millions) Long-term debt $ 2,969 $ 2,838 $ 2,968 $ 2,894 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 We also have assets and liabilities that may be measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment, when there is allocation of purchase price in an acquisition or when a new liability is being established that requires fair value measurement. These include long-lived assets, goodwill and other |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | For the three months ended March 31, 2024, we recorded an income tax provision of $62 million on pre-tax income of $300 million, or an effective tax rate of 20.7%, compared to an income tax provision of $169 million on pre-tax income of $819 million, or an effective tax rate of 20.6%, for the three months ended March 31, 2023. |
Financing Agreements
Financing Agreements | 3 Months Ended |
Mar. 31, 2024 | |
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 October 26, 2028 and 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. CF Industries is the lead borrower, and CF Holdings is the sole guarantor, under the Revolving Credit Agreement. Borrowings under the Revolving Credit Agreement can be denominated in U.S. dollars, Canadian dollars, euros and British pounds. Borrowings in U.S. dollars 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 depended on CF Holdings’ credit rating at the time. As of March 31, 2024, 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 March 31, 2024 or December 31, 2023, or during the three months ended March 31, 2024. The Revolving Credit Agreement contains representations and warranties and affirmative and negative covenants, including a financial covenant. As of March 31, 2024, we were in compliance with all covenants under the Revolving Credit Agreement. Letters of Credit Under Bilateral Agreement We are party to a bilateral agreement providing for the issuance of up to $425 million of letters of credit. As of March 31, 2024, approximately $302 million of letters of credit were outstanding under this agreement. Senior Notes Long-term debt presented on our consolidated balance sheets as of March 31, 2024 and December 31, 2023 consisted of the following debt securities issued by CF Industries: Effective Interest Rate March 31, 2024 December 31, 2023 Principal Carrying Amount (1) Principal Carrying Amount (1) (in millions) Public Senior Notes: 5.150% due March 2034 5.293% 750 742 750 741 4.950% due June 2043 5.040% 750 742 750 742 5.375% due March 2044 5.478% 750 741 750 741 Senior Secured Notes: 4.500% due December 2026 (2) 4.783% 750 744 750 744 Total long-term debt $ 3,000 $ 2,969 $ 3,000 $ 2,968 _______________________________________________________________________________ (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $6 million and $7 million as of March 31, 2024 and December 31, 2023, respectively, and total deferred debt issuance costs were $25 million as of both March 31, 2024 and December 31, 2023. (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 | 3 Months Ended |
Mar. 31, 2024 | |
Interest Expense, Operating and Nonoperating [Abstract] | |
Interest Expense | Details of interest expense are as follows: Three months ended 2024 2023 (in millions) Interest on borrowings (1) $ 37 $ 37 Fees on financing agreements (1) 2 2 Interest on tax liabilities — 2 Interest capitalized (2) (1) Total interest expense $ 37 $ 40 _______________________________________________________________________________ (1) See Note 11—Financing Agreements for additional information. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | 13. 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 March 31, 2024, we had natural gas derivative contracts covering certain periods through March 2025. As of March 31, 2024, our open natural gas derivative contracts consisted of natural gas fixed price swaps and basis swaps for 8.0 million MMBtus of natural gas. As of December 31, 2023, we had open natural gas derivative contracts consisting of natural gas fixed price swaps, basis swaps and options for 49.0 million MMBtus of natural gas. For the three months ended March 31, 2024, we used derivatives to cover approximately 55% 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 Location 2024 2023 (in millions) Unrealized net gains on natural gas derivatives Cost of sales $ 33 $ 72 Realized net losses on natural gas derivatives Cost of sales (37) (118) Net derivative losses $ (4) $ (46) The fair values of derivatives on our consolidated balance sheets are shown below. As of March 31, 2024 and December 31, 2023, none of our derivative instruments were designated as hedging instruments. See Note 9—Fair Value Measurements for additional information on derivative fair values. Asset Derivatives Liability Derivatives Balance Sheet Location March 31, December 31, 2023 Balance Sheet March 31, December 31, 2023 (in millions) (in millions) Natural gas derivatives Other current assets $ 1 $ 1 Other current liabilities $ (2) $ (35) 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 March 31, 2024 and December 31, 2023, the aggregate fair value of the derivative instruments with credit-risk-related contingent features in net liability positions was $1 million and $34 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 March 31, 2024 and December 31, 2023, 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 March 31, 2024 and December 31, 2023: Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial Cash collateral received (pledged) Net (in millions) March 31, 2024 Total derivative assets $ 1 $ — $ — $ 1 Total derivative liabilities (2) — — (2) Net derivative liabilities $ (1) $ — $ — $ (1) December 31, 2023 Total derivative assets $ 1 $ — $ — $ 1 Total derivative liabilities (35) — — (35) Net derivative liabilities $ (34) $ — $ — $ (34) _______________________________________________________________________________ (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 | 3 Months Ended |
Mar. 31, 2024 | |
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 the noncontrolling interest in our consolidated balance sheets is provided below. 2024 2023 (in millions) Noncontrolling interest: Balance as of January 1 $ 2,656 $ 2,802 Earnings attributable to noncontrolling interest 44 90 Declaration of distributions payable (144) (255) Balance as of March 31 $ 2,556 $ 2,637 Distributions payable to noncontrolling interest: Balance as of January 1 $ — $ — Declaration of distributions payable 144 255 Distributions to noncontrolling interest (144) (255) Balance as of March 31 $ — $ — |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
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). The 2021 Share Repurchase Program was completed in the second quarter of 2023. 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 our share repurchase programs may be made from time to time in the open market, through privately negotiated transactions, through block transactions, through accelerated share repurchase programs, 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. 2022 Share Repurchase Program Shares Amounts (1) (in millions) Shares repurchased in 2023: First quarter — $ — Second quarter 0.8 50 Third quarter 1.9 150 Fourth quarter 2.9 225 Total shares repurchased in 2023 5.6 425 Shares repurchased in 2024: First quarter 4.3 347 Total shares repurchased in 2024 4.3 347 Shares repurchased as of March 31, 2024 9.9 $ 772 ______________________________________________________________________________ (1) As defined in the 2022 Share Repurchase Program, amounts reflect the price paid for the shares of common stock repurchased, excluding commissions paid to brokers and excise taxes. In the three months ended March 31, 2024, we repurchased approximately 4.3 million shares under the 2022 Share Repurchase Program for $347 million, of which $14 million was accrued and unpaid as of March 31, 2024. In the three months ended March 31, 2023, we repurchased approximately 1.1 million shares under the 2021 Share Repurchase Program for $75 million, of which $21 million was accrued and unpaid as of March 31, 2023. 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, 2023 $ (146) $ 3 $ (66) $ (209) Effect of exchange rate changes and deferred taxes (16) — — (16) Balance as of March 31, 2024 $ (162) $ 3 $ (66) $ (225) Balance as of December 31, 2022 $ (179) $ 3 $ (54) $ (230) Effect of exchange rate changes and deferred taxes 7 — (1) 6 Balance as of March 31, 2023 $ (172) $ 3 $ (55) $ (224) |
Segment Disclosures
Segment Disclosures | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 are presented in the table below. Ammonia Granular Urea (1) UAN (1) AN (1) Other (1) Consolidated (in millions) Three months ended March 31, 2024 Net sales $ 402 $ 407 $ 425 $ 114 $ 122 $ 1,470 Cost of sales 337 253 282 105 84 1,061 Gross margin $ 65 $ 154 $ 143 $ 9 $ 38 409 Total other operating costs and expenses 108 Equity in earnings of operating affiliate 2 Operating earnings $ 303 Three months ended March 31, 2023 Net sales $ 424 $ 611 $ 667 $ 159 $ 151 $ 2,012 Cost of sales 280 327 346 104 92 1,149 Gross margin $ 144 $ 284 $ 321 $ 55 $ 59 863 Total other operating costs and expenses 54 Equity in earnings of operating affiliate 17 Operating earnings $ 826 _______________________________________________________________________________ (1) The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Bert A. Frost [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 13, 2024, Bert A. Frost, Executive Vice President, Sales, Market Development and Supply Chain, adopted a Rule 10b5-1 trading arrangement for the sale of up to 9,000 shares of Common Stock, subject to certain conditions, between June 14, 2024 and March 12, 2025. |
Name | Bert A. Frost |
Title | Executive Vice President, Sales, Market Development and Supply Chain |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 13, 2024 |
Arrangement Duration | 271 days |
Aggregate Available | 9,000 |
Ashraf Malik [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 15, 2024, Ashraf Malik, Senior Vice President, Manufacturing and Distribution, adopted a Rule 10b5-1 trading arrangement for the sale of up to 16,090 shares of Common Stock, subject to certain conditions, between June 14, 2024 and February 14, 2025. |
Name | Ashraf Malik |
Title | Senior Vice President, Manufacturing and Distribution |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 245 days |
Aggregate Available | 16,090 |
Susan L. Menzel [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 15, 2024, Susan L. Menzel, Executive Vice President and Chief Administrative Officer, adopted a Rule 10b5-1 trading arrangement for the sale of up to 11,200 shares of Common Stock, subject to certain conditions, between June 14, 2024 and February 28, 2025 |
Name | Susan L. Menzel |
Title | Executive Vice President and Chief Administrative Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 259 days |
Aggregate Available | 11,200 |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Cash Equivalents | Cash equivalents include highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023: Ammonia Granular Urea UAN AN Other Total (in millions) Three months ended March 31, 2024 North America $ 334 $ 403 $ 373 $ 48 $ 102 $ 1,260 Europe and other 68 4 52 66 20 210 Total revenue $ 402 $ 407 $ 425 $ 114 $ 122 $ 1,470 Three months ended March 31, 2023 North America $ 330 $ 575 $ 519 $ 74 $ 126 $ 1,624 Europe and other 94 36 148 85 25 388 Total revenue $ 424 $ 611 $ 667 $ 159 $ 151 $ 2,012 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Summary of net earnings per share | Net earnings per share were computed as follows: Three months ended 2024 2023 (in millions, except per share amounts) Net earnings attributable to common stockholders $ 194 $ 560 Basic earnings per common share: Weighted-average common shares outstanding 187.6 196.2 Net earnings attributable to common stockholders $ 1.03 $ 2.86 Diluted earnings per common share: Weighted-average common shares outstanding 187.6 196.2 Dilutive common shares—stock-based awards 0.5 0.7 Diluted weighted-average common shares outstanding 188.1 196.9 Net earnings attributable to common stockholders $ 1.03 $ 2.85 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: March 31, December 31, (in millions) Finished goods $ 226 $ 256 Raw materials, spare parts and supplies 45 43 Total inventories $ 271 $ 299 |
Property, Plant and Equipment_2
Property, Plant and Equipment-Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment, Net [Abstract] | |
Components of property, plant and equipment-net | Property, plant and equipment—net consists of the following: March 31, December 31, (in millions) Land $ 114 $ 114 Machinery and equipment 13,679 13,716 Buildings and improvements 1,015 1,020 Construction in progress 412 394 Property, plant and equipment (1) 15,220 15,244 Less: Accumulated depreciation and amortization 8,238 8,103 Property, plant and equipment—net $ 6,982 $ 7,141 _______________________________________________________________________________ (1) |
Summary of plant turnaround activity | Three months ended 2024 2023 (in millions) Net capitalized turnaround costs as of January 1 $ 352 $ 312 Additions 24 7 Depreciation (52) (31) Effect of exchange rate changes and other (1) — Net capitalized turnaround costs as of March 31 $ 323 $ 288 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of cash and cash equivalents and other investments reconciliation from adjusted cost to fair value | Our cash and cash equivalents and other investments consist of the following: March 31, 2024 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 190 $ — $ — $ 190 Cash equivalents: U.S. and Canadian government obligations 1,277 — — 1,277 Other debt securities 306 — — 306 Total cash and cash equivalents $ 1,773 $ — $ — $ 1,773 Nonqualified employee benefit trusts 16 1 — 17 December 31, 2023 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 208 $ — $ — $ 208 Cash equivalents: U.S. and Canadian government obligations 1,488 — — 1,488 Other debt securities 336 — — 336 Total cash and cash equivalents $ 2,032 $ — $ — $ 2,032 Nonqualified employee benefit trusts 16 1 — 17 |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables present assets and liabilities included in our consolidated balance sheets as of March 31, 2024 and December 31, 2023 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value: March 31, 2024 Total Fair Quoted Prices Significant Significant (in millions) Cash equivalents $ 1,583 $ 1,583 $ — $ — Nonqualified employee benefit trusts 17 17 — — Derivative assets 1 — 1 — Derivative liabilities (2) — (2) — December 31, 2023 Total Fair Quoted Prices Significant Significant (in millions) Cash equivalents $ 1,824 $ 1,824 $ — $ — Nonqualified employee benefit trusts 17 17 — — Derivative assets 1 — 1 — Derivative liabilities (35) — (35) — |
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: March 31, 2024 December 31, 2023 Carrying Fair Value Carrying Fair Value (in millions) Long-term debt $ 2,969 $ 2,838 $ 2,968 $ 2,894 |
Financing Agreements (Tables)
Financing Agreements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Components of long-term debt | Long-term debt presented on our consolidated balance sheets as of March 31, 2024 and December 31, 2023 consisted of the following debt securities issued by CF Industries: Effective Interest Rate March 31, 2024 December 31, 2023 Principal Carrying Amount (1) Principal Carrying Amount (1) (in millions) Public Senior Notes: 5.150% due March 2034 5.293% 750 742 750 741 4.950% due June 2043 5.040% 750 742 750 742 5.375% due March 2044 5.478% 750 741 750 741 Senior Secured Notes: 4.500% due December 2026 (2) 4.783% 750 744 750 744 Total long-term debt $ 3,000 $ 2,969 $ 3,000 $ 2,968 _______________________________________________________________________________ (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $6 million and $7 million as of March 31, 2024 and December 31, 2023, respectively, and total deferred debt issuance costs were $25 million as of both March 31, 2024 and December 31, 2023. (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) | 3 Months Ended |
Mar. 31, 2024 | |
Interest Expense, Operating and Nonoperating [Abstract] | |
Schedule of interest expense | Details of interest expense are as follows: Three months ended 2024 2023 (in millions) Interest on borrowings (1) $ 37 $ 37 Fees on financing agreements (1) 2 2 Interest on tax liabilities — 2 Interest capitalized (2) (1) Total interest expense $ 37 $ 40 _______________________________________________________________________________ (1) See Note 11—Financing Agreements for additional information. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 Location 2024 2023 (in millions) Unrealized net gains on natural gas derivatives Cost of sales $ 33 $ 72 Realized net losses on natural gas derivatives Cost of sales (37) (118) Net derivative losses $ (4) $ (46) |
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 March 31, 2024 and December 31, 2023, none of our derivative instruments were designated as hedging instruments. See Note 9—Fair Value Measurements for additional information on derivative fair values. Asset Derivatives Liability Derivatives Balance Sheet Location March 31, December 31, 2023 Balance Sheet March 31, December 31, 2023 (in millions) (in millions) Natural gas derivatives Other current assets $ 1 $ 1 Other current liabilities $ (2) $ (35) |
Offsetting Liabilities | The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of March 31, 2024 and December 31, 2023: Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial Cash collateral received (pledged) Net (in millions) March 31, 2024 Total derivative assets $ 1 $ — $ — $ 1 Total derivative liabilities (2) — — (2) Net derivative liabilities $ (1) $ — $ — $ (1) December 31, 2023 Total derivative assets $ 1 $ — $ — $ 1 Total derivative liabilities (35) — — (35) Net derivative liabilities $ (34) $ — $ — $ (34) _______________________________________________________________________________ (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 March 31, 2024 and December 31, 2023: Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial Cash collateral received (pledged) Net (in millions) March 31, 2024 Total derivative assets $ 1 $ — $ — $ 1 Total derivative liabilities (2) — — (2) Net derivative liabilities $ (1) $ — $ — $ (1) December 31, 2023 Total derivative assets $ 1 $ — $ — $ 1 Total derivative liabilities (35) — — (35) Net derivative liabilities $ (34) $ — $ — $ (34) _______________________________________________________________________________ (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) | 3 Months Ended |
Mar. 31, 2024 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | A reconciliation of the beginning and ending balances of noncontrolling interest and distributions payable to the noncontrolling interest in our consolidated balance sheets is provided below. 2024 2023 (in millions) Noncontrolling interest: Balance as of January 1 $ 2,656 $ 2,802 Earnings attributable to noncontrolling interest 44 90 Declaration of distributions payable (144) (255) Balance as of March 31 $ 2,556 $ 2,637 Distributions payable to noncontrolling interest: Balance as of January 1 $ — $ — Declaration of distributions payable 144 255 Distributions to noncontrolling interest (144) (255) Balance as of March 31 $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Class of Treasury Stock | The following table summarizes the share repurchases under the 2022 Share Repurchase Program. 2022 Share Repurchase Program Shares Amounts (1) (in millions) Shares repurchased in 2023: First quarter — $ — Second quarter 0.8 50 Third quarter 1.9 150 Fourth quarter 2.9 225 Total shares repurchased in 2023 5.6 425 Shares repurchased in 2024: First quarter 4.3 347 Total shares repurchased in 2024 4.3 347 Shares repurchased as of March 31, 2024 9.9 $ 772 |
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, 2023 $ (146) $ 3 $ (66) $ (209) Effect of exchange rate changes and deferred taxes (16) — — (16) Balance as of March 31, 2024 $ (162) $ 3 $ (66) $ (225) Balance as of December 31, 2022 $ (179) $ 3 $ (54) $ (230) Effect of exchange rate changes and deferred taxes 7 — (1) 6 Balance as of March 31, 2023 $ (172) $ 3 $ (55) $ (224) |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Summary of segment data for sales, cost of sales and gross margin | Segment data for sales, cost of sales and gross margin for the three months ended March 31, 2024 and 2023 are presented in the table below. Ammonia Granular Urea (1) UAN (1) AN (1) Other (1) Consolidated (in millions) Three months ended March 31, 2024 Net sales $ 402 $ 407 $ 425 $ 114 $ 122 $ 1,470 Cost of sales 337 253 282 105 84 1,061 Gross margin $ 65 $ 154 $ 143 $ 9 $ 38 409 Total other operating costs and expenses 108 Equity in earnings of operating affiliate 2 Operating earnings $ 303 Three months ended March 31, 2023 Net sales $ 424 $ 611 $ 667 $ 159 $ 151 $ 2,012 Cost of sales 280 327 346 104 92 1,149 Gross margin $ 144 $ 284 $ 321 $ 55 $ 59 863 Total other operating costs and expenses 54 Equity in earnings of operating affiliate 17 Operating earnings $ 826 _______________________________________________________________________________ (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 | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Net sales | $ 1,470 | $ 2,012 | |
Customer advances | 104 | $ 130 | |
Contract with Customer, Liability, Revenue Recognized | $ 110 | $ 160 |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Product and by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,470 | $ 2,012 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,260 | 1,624 |
Europe and Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 210 | 388 |
Ammonia | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 402 | 424 |
Ammonia | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 334 | 330 |
Ammonia | Europe and Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 68 | 94 |
Granular Urea | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 407 | 611 |
Granular Urea | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 403 | 575 |
Granular Urea | Europe and Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4 | 36 |
UAN | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 425 | 667 |
UAN | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 373 | 519 |
UAN | Europe and Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 52 | 148 |
AN | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 114 | 159 |
AN | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 48 | 74 |
AN | Europe and Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 66 | 85 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 122 | 151 |
Other | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 102 | 126 |
Other | Europe and Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 20 | $ 25 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Amount of remaining performance obligation | $ 2,100 |
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 | $ 1,300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 23% |
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 | 19% |
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 | 19% |
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 | 19% |
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 | 16% |
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 | 16% |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net earnings attributable to common stockholders | $ 194 | $ 560 |
Basic earnings per common share: | ||
Weighted-average common shares outstanding | 187.6 | 196.2 |
Net earnings attributable to common stockholders (in dollars per share) | $ 1.03 | $ 2.86 |
Diluted earnings per common share: | ||
Weighted-average common shares outstanding | 187.6 | 196.2 |
Dilutive common shares—stock options (in shares) | 0.5 | 0.7 |
Diluted weighted-average common shares outstanding | 188.1 | 196.9 |
Net earnings attributable to common stockholders diluted (in dollars per share) | $ 1.03 | $ 2.85 |
Antidilutive securities excluded from computation of EPS (in shares) | 0 | 0 |
Acquisition of Waggaman Ammon_2
Acquisition of Waggaman Ammonia Production Facility (Details) - Waggaman Ammonia Production Facility T in Thousands, $ in Millions | Dec. 01, 2023 USD ($) T |
Asset Acquisition [Line Items] | |
Business Combination, Annual Production Of Facility Acquired | T | 880 |
Business Combination, Long Term Supply Commitment Acquired, Committed Annual Amount | T | 200 |
Business Combination, Consideration Transferred | $ 1,675 |
Business Combination, Amount Of Offtake Agreement Acquired | (425) |
Payments to Acquire Businesses, Gross | $ 1,223 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 226 | $ 256 |
Raw materials, spare parts and supplies | 45 | 43 |
Total inventories | $ 271 | $ 299 |
Property, Plant and Equipment_3
Property, Plant and Equipment-Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment-Net | ||||
Gross property plant and equipment | $ 15,220 | $ 15,244 | ||
Less: Accumulated depreciation and amortization | 8,238 | 8,103 | ||
Net property, plant and equipment | 6,982 | 7,141 | ||
Construction in progress expenditures incurred but not yet paid | 72 | $ 45 | 68 | $ 53 |
Depreciation and amortization | 252 | 204 | ||
Land | ||||
Property, Plant and Equipment-Net | ||||
Gross property plant and equipment | 114 | 114 | ||
Machinery and equipment | ||||
Property, Plant and Equipment-Net | ||||
Gross property plant and equipment | 13,679 | 13,716 | ||
Changes in plant turnaround activity | ||||
Balance at the beginning of the period | 352 | 312 | 312 | |
Additions | 24 | 7 | ||
Depreciation | (52) | (31) | ||
Effect of exchange rate changes and other | (1) | 0 | ||
Balance at the end of the period | 323 | $ 288 | 352 | $ 312 |
Buildings and improvements | ||||
Property, Plant and Equipment-Net | ||||
Gross property plant and equipment | 1,015 | 1,020 | ||
Construction in progress | ||||
Property, Plant and Equipment-Net | ||||
Gross property plant and equipment | $ 412 | $ 394 |
Equity Method Investment-Narrat
Equity Method Investment-Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Point Lisas Nitrogen Limited (PLNL) | ||
Equity method investments | ||
Ownership interest (as a percent) | 50% | |
Point Lisas Nitrogen Limited (PLNL) | ||
Equity method investments | ||
Equity Method Investment | $ 29 | |
Obligation to purchase ammonia (as a percent) | 50% | |
Purchases of ammonia from PLNL | $ 30 | $ 59 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Investments [Line Items] | ||
Cash | $ 190 | $ 208 |
Cash and Cash Equivalents | ||
Cash equivalents: | ||
Cost Basis | 1,773 | 2,032 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 1,773 | 2,032 |
U.S. and Canadian government obligations | Cash and Cash Equivalents | ||
Cash equivalents: | ||
Cost Basis | 1,277 | 1,488 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 1,277 | 1,488 |
Other debt securities | Cash and Cash Equivalents | ||
Cash equivalents: | ||
Cost Basis | 306 | 336 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 306 | 336 |
Nonqualified employee benefit trusts | ||
Cash equivalents: | ||
Cost Basis | 16 | 16 |
Unrealized Gains | 1 | 1 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 17 | $ 17 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 2) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
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 | $ 2,838 | $ 2,894 |
Reported Value Measurement | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value of long-term debt, including current portion | 2,969 | 2,968 |
Recurring basis | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 1,583 | 1,824 |
Nonqualified employee benefit trusts | 17 | 17 |
Derivative Liability | (2) | (35) |
Derivative Asset | 1 | 1 |
Recurring basis | Quoted Prices in Active Markets (Level 1) | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash equivalents | 1,583 | 1,824 |
Nonqualified employee benefit trusts | 17 | 17 |
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 | (2) | (35) |
Derivative Asset | 1 | 1 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 62 | $ 169 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 300 | $ 819 |
Effective Income Tax Rate Reconciliation, Percent | 20.70% | 20.60% |
Less: Net earnings attributable to noncontrolling interest | $ 44 | $ 90 |
Effective Income Tax Rate Reconciliation, period increase/(decrease) due to noncontrolling interest | 3.60% | 2.60% |
Financing Agreements (Details)
Financing Agreements (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instruments | ||
Principal | $ 3,000 | $ 3,000 |
Carrying amount | 2,969 | 2,968 |
Long-term debt | 2,969 | 2,968 |
CF Industries | ||
Debt Instruments | ||
Unamortized debt discount | 6 | 7 |
Total deferred debt issuance costs | $ 25 | $ 25 |
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 | $ 742 | $ 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 | $ 741 |
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 | $ 744 | $ 744 |
Financing Agreements - Narrativ
Financing Agreements - Narrative (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Oct. 26, 2023 |
Financing agreements | |||
Principal | $ 3,000,000,000 | $ 3,000,000,000 | |
Letter of Credit | Letter of Credit | |||
Financing agreements | |||
Maximum borrowing capacity | 425,000,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 302,000,000 | ||
CF Industries | Letter of Credit | Revolving Credit Facility | |||
Financing agreements | |||
Maximum borrowing capacity | $ 750,000,000 | ||
CF Industries | Letter of Credit | Letter of Credit | |||
Financing agreements | |||
Maximum borrowing capacity | $ 125,000,000 | ||
CF Industries | Credit Agreement | |||
Financing agreements | |||
Available credit | 750,000,000 | ||
Outstanding letters of credit | 0 | ||
Long-term Line of Credit | $ 0 | $ 0 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest Expense, Operating and Nonoperating [Abstract] | ||
Interest on borrowings(1) | $ 37 | $ 37 |
Fees on financing agreements(1) | 2 | 2 |
Interest on tax liabilities | 0 | 2 |
Interest capitalized | (2) | (1) |
Interest expense | $ 37 | $ 40 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (4) | $ (46) |
Energy Related Derivative | Not Designated as Hedging Instrument | Cost of Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized Gain (Loss) on Derivatives | 33 | 72 |
Gain (Loss) on Sale of Derivatives | $ (37) | $ (118) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details 2) MMBTU in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) MMBTU | Dec. 31, 2023 USD ($) MMBTU | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Notional Nonmonetary Amount of Price Risk Derivative Instruments Not Designated as Hedging Instruments | MMBTU | 8 | 49 |
Percentage of Consumption Hedged by Derivatives | 55% | |
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 | 1,000,000 | 34,000,000 |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Not Designated as Hedging Instrument | ||
Fair values of derivatives on consolidated balance sheets | ||
Derivative Asset | 1,000,000 | 1,000,000 |
Derivative Liability | 2,000,000 | 35,000,000 |
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 | 1,000,000 | 1,000,000 |
Derivative Liability | 2,000,000 | $ 35,000,000 |
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 ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Cash collateral on deposit with derivative counterparties | $ 0 | $ 0 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset | 1,000,000 | 1,000,000 |
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 | 1,000,000 | 1,000,000 |
Derivative Liability | (2,000,000) | (35,000,000) |
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 | (2,000,000) | (35,000,000) |
Derivative Assets (Liabilities), at Fair Value, Net | (1,000,000) | (34,000,000) |
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 | $ (1,000,000) | $ (34,000,000) |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) T | Mar. 31, 2023 USD ($) | Feb. 01, 2016 | |
Noncontrolling interest | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | $ | $ 144 | $ 255 | |
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 | $ | $ 144 | $ 255 | |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Noncontrolling interest | ||
Beginning balance | $ 2,656 | |
Earnings attributable to noncontrolling interests | 44 | $ 90 |
Distribution declared to noncontrolling interest | (144) | (255) |
Ending balance | 2,556 | |
CF Industries Nitrogen, LLC | ||
Noncontrolling interest | ||
Beginning balance | 2,656 | 2,802 |
Earnings attributable to noncontrolling interests | 44 | 90 |
Distribution declared to noncontrolling interest | (144) | (255) |
Ending balance | 2,556 | 2,637 |
Distributions payable to noncontrolling interests: | ||
Beginning balance | 0 | 0 |
Declaration of distributions payable | 144 | 255 |
Distributions to noncontrolling interest | (144) | (255) |
Ending balance | $ 0 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | $ (209) | |
Balance at the end of the period | (225) | |
Accumulated Other Comprehensive Income (Loss) | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | (209) | $ (230) |
Effect of exchange rate changes and deferred taxes | (16) | 6 |
Balance at the end of the period | (225) | (224) |
Foreign Currency Translation Adjustment | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | (146) | (179) |
Effect of exchange rate changes and deferred taxes | (16) | 7 |
Balance at the end of the period | (162) | (172) |
Unrealized Gain on Derivatives | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | 3 | 3 |
Effect of exchange rate changes and deferred taxes | 0 | 0 |
Balance at the end of the period | 3 | 3 |
Defined Benefit Plans | ||
Changes to accumulated other comprehensive income (loss) | ||
Balance at the beginning of the period | (66) | (54) |
Effect of exchange rate changes and deferred taxes | 0 | (1) |
Balance at the end of the period | $ (66) | $ (55) |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | 27 Months Ended | ||||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2024 | Nov. 02, 2022 | Nov. 03, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||
stock repurchase accrued but unpaid | $ 14 | $ 21 | |||||||
Authorized amount of stock repurchase program | $ 3,000 | $ 1,500 | |||||||
2022 Share Repurchase Program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchased during period (in shares) | 4,300 | 2,900 | 1,900 | 800 | 0 | 5,600 | 9,900 | ||
Amount of stock repurchased during period | $ 347 | $ 225 | $ 150 | $ 50 | $ 0 | $ 425 | $ 772 | ||
2021 Share Repurchase Program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchased during period (in shares) | 1,100 | ||||||||
Amount of stock repurchased during period | $ 75 |
Stockholders' Equity (Details 3
Stockholders' Equity (Details 3) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | 27 Months Ended | ||||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2024 | Nov. 02, 2022 | Nov. 03, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Authorized amount of stock repurchase program | $ 3,000 | $ 1,500 | |||||||
2022 Share Repurchase Program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchased during period (in shares) | 4,300 | 2,900 | 1,900 | 800 | 0 | 5,600 | 9,900 | ||
Amount of stock repurchased during period | $ 347 | $ 225 | $ 150 | $ 50 | $ 0 | $ 425 | $ 772 |
Segment Disclosures (Details)
Segment Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment data | ||
Net sales | $ 1,470 | $ 2,012 |
Cost of sales | 1,061 | 1,149 |
Gross margin | 409 | 863 |
Total other operating costs and expenses | 108 | 54 |
Equity in earnings of operating affiliate | 2 | 17 |
Operating earnings | 303 | 826 |
Ammonia | ||
Segment data | ||
Net sales | 402 | 424 |
Granular Urea | ||
Segment data | ||
Net sales | 407 | 611 |
UAN | ||
Segment data | ||
Net sales | 425 | 667 |
AN | ||
Segment data | ||
Net sales | 114 | 159 |
Operating Segments | Ammonia | ||
Segment data | ||
Net sales | 402 | 424 |
Cost of sales | 337 | 280 |
Gross margin | 65 | 144 |
Operating Segments | Granular Urea | ||
Segment data | ||
Net sales | 407 | 611 |
Cost of sales | 253 | 327 |
Gross margin | 154 | 284 |
Operating Segments | UAN | ||
Segment data | ||
Net sales | 425 | 667 |
Cost of sales | 282 | 346 |
Gross margin | 143 | 321 |
Operating Segments | AN | ||
Segment data | ||
Net sales | 114 | 159 |
Cost of sales | 105 | 104 |
Gross margin | 9 | 55 |
Operating Segments | Other | ||
Segment data | ||
Net sales | 122 | 151 |
Cost of sales | 84 | 92 |
Gross margin | $ 38 | $ 59 |