Terra Nitrogen Co L P 10-K 25 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 25, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	TERRA NITROGEN CO L P /DE
Entity Central Index Key	879,575
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 558,535,133
Entity Common Stock, Shares Outstanding		18,501,576
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 106.4	$ 113
Due from affiliates of the General Partner	10.4	25.2
Accounts receivable	0.8	0.4
Inventories	10.7	9.6
Prepaid expenses and other current assets	0	0.3
Total current assets	128.3	148.5
Property, plant and equipment, net	307	259.4
Other assets	8.4	7.9
Total assets	443.7	415.8
Current liabilities:
Accounts payable and accrued expenses	23.5	32.4
Due to affiliates of the General Partner	4.5	4.2
Other current liabilities	15.9	3.6
Total current liabilities	43.9	40.2
Other liabilities	12.8	0.7
Partners' capital:
General Partner's interest	76.2	70
Total partners' capital	387	374.9
Total liabilities and partners' capital	443.7	415.8
Common
Partners' capital:
Limited partners' interests, 18,501,576 Common Units authorized, issued and outstanding; 184,072 Class B Common Units authorized, issued and outstanding	308.5	302.7
Class B Common
Partners' capital:
Limited partners' interests, 18,501,576 Common Units authorized, issued and outstanding; 184,072 Class B Common Units authorized, issued and outstanding	$ 2.3	$ 2.2

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - shares	Dec. 31, 2015	Dec. 31, 2014
Common
Limited partners' interests, Common Units authorized	18,501,576	18,501,576
Common Units issued	18,501,576	18,501,576
Common Units outstanding	18,501,576	18,501,576
Class B Common
Limited partners' interests, Common Units authorized	184,072	184,072
Common Units issued	184,072	184,072
Common Units outstanding	184,072	184,072

Consolidated Statements Of Oper

Consolidated Statements Of Operations - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net sales:
Other income	$ 0.9	$ 0.6	$ 0.8
Total	581.7	648.3	736.2
Cost of goods sold:
Materials, supplies and services	228	237.6	191.7
Gross margin	325.8	386.7	519.8
Other general and administrative expenses	3.2	1.1	2.1
Net earnings	306.9	370	502.4
Allocation of net earnings:
Net earnings	$ 306.9	$ 370	$ 502.4
Net earnings per Common Unit (in dollars per unit)	$ 10.06	$ 12.07	$ 15.77
Affiliates
Net sales:
Product sales to an affiliate of the General Partner	$ 580.2	$ 647.1	$ 734.8
Other income	0.6	0.6	0.6
Cost of goods sold:
Services provided by affiliates of the General Partner	27.9	24	24.7
Selling, general and administrative services provided by affiliates of the General Partner	$ 15.7	$ 15.6	$ 15.3

Consolidated Statements Of Part

Consolidated Statements Of Partners' Capital - USD ($) $ in Millions	Total	General Partner's Interests	Common UnitsUnits	Class B Common UnitsUnits
Partners' capital at Dec. 31, 2012	$ 271.8	$ 32.3	$ 238.3	$ 1.2
Increase (Decrease) in Partners' Capital
Common Units			291.8	4.9
General Partner		205.7
Net earnings	502.4
Distributions	(465.2)	(195)	(265.6)	(4.6)
Partners' capital at Dec. 31, 2013	309	43	264.5	1.5
Increase (Decrease) in Partners' Capital
Net earnings	370	143.1	223.3	3.6
Distributions	(304.1)	(116.1)	(185.1)	(2.9)
Partners' capital at Dec. 31, 2014	374.9	70	302.7	2.2
Increase (Decrease) in Partners' Capital
Net earnings	306.9	117.7	186.2	3
Distributions	(294.8)	(111.5)	(180.4)	(2.9)
Partners' capital at Dec. 31, 2015	$ 387	$ 76.2	$ 308.5	$ 2.3

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Activities:
Net earnings	$ 306.9	$ 370	$ 502.4
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	35.8	23.5	19.3
Unrealized loss (gain) on derivatives	24.3	11.4	(8.6)
Loss (gain) on disposal of property, plant and equipment	2	0	(0.4)
Changes in operating assets and liabilities:
Accounts receivable	(0.4)	0.6	(0.4)
Inventories	(1.1)	(3.7)	(0.2)
Accounts payable and accrued expenses	(6.7)	3.1	(0.7)
Due to/from affiliates of the General Partner	15.1	4.4	(25.3)
Other assets and liabilities	(0.8)	(4)	2.8
Net cash provided by operating activities	375.1	405.3	488.9
Investing Activities:
Additions to property, plant and equipment	(87.8)	(67.1)	(99.6)
Proceeds from Sale of Property, Plant, and Equipment	0.9	0	0
Proceeds from Collection of Advance to Affiliate	0	0	5.4
Net cash used in investing activities	(86.9)	(67.1)	(94.2)
Financing Activities:
Payments of distributions to affiliates	(294.8)	(304.1)	(465.2)
Other	0	(8)	8
Net cash used in financing activities	(294.8)	(312.1)	(457.2)
(Decrease) increase in cash and cash equivalents	(6.6)	26.1	(62.5)
Cash and cash equivalents at beginning of year	113	86.9	149.4
Cash and cash equivalents at end of year	$ 106.4	$ 113	$ 86.9

Background and Basis of Present

Background and Basis of Presentation	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Terra Nitrogen Company, L.P. ("TNCLP", "we," "our" or "us") is a Delaware limited partnership that produces nitrogen fertilizer products. Our principal products are anhydrous ammonia (ammonia) and urea ammonium nitrate solutions (UAN), which we manufacture at our facility in Verdigris, Oklahoma. We conduct our operations through an operating partnership, Terra Nitrogen, Limited Partnership (TNLP or the Operating Partnership, and collectively with TNCLP, the Partnership). Terra Nitrogen GP Inc. (TNGP or the General Partner), a Delaware corporation, is the general partner of both TNCLP and TNLP and owns a consolidated 0.05% general partner interest in the Partnership. The General Partner is an indirect, wholly-owned subsidiary of CF Industries Holdings, Inc. (CF Industries), a Delaware corporation. Ownership of TNCLP is comprised of the general partner interests and the limited partner interests. Limited partner interests are represented by common units, which are listed for trading on the New York Stock Exchange under the symbol "TNH" and Class B common units. As of December 31, 2015 , we had 18,501,576 common units and 184,072 Class B common units issued and outstanding. CF Industries through its subsidiaries owned 13,889,014 common units (representing approximately 75% of the total outstanding common units) and all of the Class B common units as of December 31, 2015 . We are a master limited partnership (MLP). Partnerships are generally not subject to federal income tax, although publicly-traded partnerships (such as TNCLP) are treated as corporations for federal income tax purposes (and therefore are subject to federal income tax), unless at least 90% of the partnership's gross income is "qualifying income" as defined in Section 7704 of the Internal Revenue Code of 1986, as amended, and the partnership is not required to register as an investment company under the Investment Company Act of 1940. As we currently satisfy the requirements to be treated as a partnership for federal income tax purposes, no federal income taxes are paid by the Partnership. On May 6, 2015, the Internal Revenue Service (IRS) published proposed regulations on the types of income and activities which constitute or generate qualifying income of MLP. The proposed regulations would have the effect of limiting the types of income and activities which qualify under the MLP rules, subject to certain transition provisions. The proposed regulations include as activities that generate qualifying income processing or refining and transportation activities with respect to any mineral or natural resource (including fertilizer), but reserve on specific proposals regarding fertilizer-related activities. Any change in the federal income tax treatment of income from fertilizer-related activities as qualifying income could have a material impact on the taxation of the Partnership and could have a material adverse impact on unitholder distributions. We continue to monitor these IRS regulatory activities. Throughout this document, the term "affiliates of the General Partner" refers to the consolidated subsidiaries of CF Industries, including TNGP. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (U.S. GAAP).

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Consolidation The consolidated financial statements of TNCLP and the accompanying notes include the accounts of the Partnership. All intercompany transactions and balances have been eliminated. Income is allocated to the General Partner and the limited partners in accordance with the provisions of the TNCLP agreement of limited partnership that provides for allocations of income between the limited partners and the General Partner in the same proportion as cash distributions declared during the year. Revenue Recognition The basic criteria necessary for revenue recognition are: 1) evidence that a sales arrangement exists, 2) delivery of goods has occurred, 3) the seller's price to the buyer is fixed or determinable, and 4) collectability is reasonably assured. The title and risk of loss passes to an affiliate of the General Partner as the product is shipped from the plant gate. We recognize revenue when these criteria have been met and when title and risk of loss have been transferred to an affiliate of the General Partner. Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less. The carrying value of cash and cash equivalents approximates fair value. Due to/from Affiliates of General Partner We receive cash and make expenditures directly from our cash accounts. Because we sell our products to and receive payroll and other related services from affiliates of the General Partner, the affiliates of the General Partner continue to be both debtors and creditors to us. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at face amounts less an allowance for doubtful accounts. The allowance is an estimate based on historical collection experience, current economic and market conditions, and a review of the current status of each customer's trade accounts receivable. A receivable is past due if payments have not been received within the agreed upon invoice terms. Account balances are charged-off against the allowance when management determines that it is probable the receivable will not be recovered. Inventories Inventories are reported at the lower of cost or market and are determined on a first-in, first-out or average cost basis. Inventories include the cost of materials, production labor and production overhead. Market value is reviewed quarterly. Fixed production costs related to idle capacity are not included in the cost of inventories but are charged directly to cost of sales. Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method. Depreciable lives range from 10 to 40 years for buildings and 5 to 30 years for machinery and equipment. We periodically review these depreciable lives and change the estimates to reflect the results of those reviews. Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facility are referred to as plant turnarounds. Plant turnarounds are accounted for under the deferral method, as opposed to the direct expense or built-in overhaul methods. Under the deferral method, expenditures related to turnarounds are capitalized when incurred and amortized to production costs on a straight-line basis over the period benefited, which is until the next scheduled turnaround in up to 5 years . If the direct expense method were used, all turnaround costs would be expensed as incurred. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized. Turnaround costs are classified as investing activities in our consolidated statements of cash flows. For additional information, see Note 9—Property, Plant and Equipment, Net . Recoverability of Long-Lived Assets We review property, plant and equipment and other long-lived assets in order to assess recoverability based on expected future undiscounted cash flows whenever events or circumstances indicate that the carrying value may not be recoverable. If the sum of the expected future net cash flows is less than the carrying value, an impairment loss is recognized. The impairment loss is measured as the amount by which the carrying value exceeds the fair value of the asset. Leases Leases are classified as either operating leases or capital leases. Assets acquired under capital leases are depreciated on the same basis as property, plant and equipment. We currently do not have any capital leases. Rental payments, including rent holidays, leasehold incentives, and scheduled rent increases are expensed on a straight-line basis. Leasehold improvements are amortized over the shorter of the depreciable lives of the corresponding fixed assets or the lease term including any applicable renewals. Income Taxes As a partnership, we are not subject to income taxes. For additional information, see Note 1—Background and Basis of Presentation . The income tax liability of the individual partners is not reflected in our consolidated financial statements. Derivative Financial Instruments Natural gas is the principal raw material used to produce nitrogen fertilizers. We use natural gas both as a chemical feedstock and as a fuel to produce ammonia and UAN. We manage the risk of changes in natural gas prices primarily through the use of derivative financial instruments. The derivative instruments that we use are primarily fixed price swaps and options traded in the over-the-counter markets. These derivatives reference NYMEX futures contract prices, which represent the basis for fair value at any given time. The derivatives are traded in months forward and settlements are scheduled to coincide with anticipated gas purchases during those future periods. We do not use derivatives for trading purposes and are not a party to any leveraged derivatives. Derivatives are recognized on our consolidated balance sheets at fair value. Cash flows related to natural gas derivatives are reported as operating activities in our consolidated statements of cash flows. Asset Retirement Obligations Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development or normal operation of such assets. AROs are initially recognized as liabilities as incurred when sufficient information exists to estimate fair value. When initially recognized, the fair value based on discounted future cash flows is recorded both as a liability and an increase in the carrying amount of the related long-lived asset. In subsequent periods, depreciation of the asset and accretion of the liability are recorded. For additional information on AROs, see Note 11—Asset Retirement Obligations . Environmental Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations are expensed. Expenditures that increase the capacity or extend the useful life of an asset, improve the safety or efficiency of the operations, or mitigate or prevent future environmental contamination are capitalized. Liabilities are recorded when it is probable that a liability has been incurred and the costs can be reasonably estimated. Environmental liabilities are not discounted. Litigation From time to time, the Partnership is subject to ordinary, routine legal proceedings related to the usual conduct of its business. The Partnership also is involved in legal proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of its plant and facilities. Accruals for such contingencies are recorded to the extent management concludes their occurrence is probable and the financial impact of an adverse outcome is reasonably estimable. Disclosure for specific legal contingencies is provided if the likelihood of occurrence is at least reasonably possible and the exposure is considered material to the consolidated financial statements. In making determinations of likely outcomes of litigation matters, many factors are considered. These factors include, but are not limited to, past history, scientific and other evidence, and the specifics and status of each matter. If the assessment of various factors changes, the estimates may change. Predicting the outcome of claims and litigation, and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from estimates and accruals.

New Accounting Standards

New Accounting Standards	12 Months Ended
	Dec. 31, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Standards	New Accounting Standards In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, Simplifying the Measurement of Inventory (an update to Topic 330, Inventory), effective for annual and interim periods beginning after December 15, 2016. ASU No. 2015-11 changes the inventory measurement principle for entities using the first-in, first out (FIFO) or average cost methods. For entities utilizing one of these methods, the inventory measurement principle will change from lower of cost or market to the lower of cost and net realizable value. We use the FIFO or average cost methods and are currently evaluating the impact of this ASU on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments. Additionally, information concerning the costs to obtain and fulfill a contract, including assets to be recognized, is to be capitalized and disclosed. In July 2015, the FASB voted to defer the effective date of this ASU through the issuance of ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, to December 15, 2017 for interim and annual reporting periods beginning after that date. Early adoption of the standard as of December 15, 2016 (for interim and annual reporting periods beginning after that date) is permitted by the FASB. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements.

Agreement of Limited Partnershi

Agreement of Limited Partnership	12 Months Ended
	Dec. 31, 2015
Distributions Made to Members or Limited Partners [Abstract]
Agreement of Limited Partnership	Agreement of Limited Partnership We make quarterly distributions to holders of our general partner interest and limited partner interests based on Available Cash for the quarter as defined in our agreement of limited partnership. Available Cash is defined generally as all cash receipts less all cash disbursements, less certain reserves (including reserves for future operating and capital needs) established as the General Partner determines in its reasonable discretion to be necessary or appropriate. Changes in working capital affect Available Cash as changes in the amount of cash invested in working capital items (such as increases in inventory and decreases in accounts payable) reduce Available Cash, while declines in the amount of cash invested in working capital items increase Available Cash. We declared and paid distributions of $294.8 million , $304.1 million and $465.2 million to our partners in 2015 , 2014 and 2013 , respectively. We receive 99% of the Available Cash from the Operating Partnership and 1% is distributed by the Operating Partnership to the General Partner. Cash distributions from the Operating Partnership generally represent the Operating Partnership's Available Cash from operations. Our cash distributions are made 99.975% to common and Class B common unitholders and 0.025% to the General Partner except when cumulative distributions of Available Cash exceed specified target levels above the Minimum Quarterly Distributions (MQD) of $0.605 per unit. Under such circumstances, the General Partner is entitled to receive Incentive Distribution Rights. On February 8, 2016 , we announced a $2.88 cash distribution per common unit, payable on February 29, 2016 to holders of record as of February 18, 2016 . In the fourth quarter of 2015 , we exceeded the cumulative MQD amounts and will distribute Available Cash as summarized in the following table: Income and Distribution Allocation Target Limit Target Increment Common Units Class B Common Units General Partner Total Minimum Quarterly Distributions $ 0.605 $ 0.605 98.990 % 0.985 % 0.025 % 100.00 % First Target 0.715 0.110 98.990 % 0.985 % 0.025 % 100.00 % Second Target 0.825 0.110 85.859 % 0.985 % 13.156 % 100.00 % Third Target 1.045 0.220 75.758 % 0.985 % 23.257 % 100.00 % Final Target and Beyond >1.045 — 50.505 % 0.985 % 48.510 % 100.00 % The General Partner is required to remit the majority of cash distributions it receives from the Partnership, in excess of its 1% Partnership equity interest, to an affiliated company. The quarterly cash distributions to the unitholders and the General Partner declared in 2015 and 2014 are as follows: Common Units Class B Common Units General Partner Total Distributions Declared Total Per unit Total Per unit Total (in millions, except per unit amounts) 2015 First Quarter $ 46.3 $ 2.50 $ 0.7 $ 4.03 $ 29.1 $ 76.1 Second Quarter 38.5 2.08 0.6 3.20 21.3 60.4 Third Quarter 43.6 2.36 0.7 3.74 26.5 70.8 Fourth Quarter 52.0 2.81 0.9 4.64 34.6 87.5 2014 First Quarter $ 38.8 $ 2.10 $ 0.6 $ 3.24 $ 21.7 $ 61.1 Second Quarter 55.8 3.01 0.9 5.03 38.3 95.0 Third Quarter 57.5 3.11 1.0 5.22 40.1 98.6 Fourth Quarter 33.0 1.78 0.4 2.61 16.0 49.4 As of December 31, 2015 , the General Partner and its affiliates owned 75.3% of our outstanding units. When not more than 25% of our issued and outstanding units are held by non-affiliates of the General Partner, as was the case at December 31, 2015 , we, at the General Partner's sole discretion, may call, or assign to the General Partner or its affiliates, our right to acquire all, but not less than all, such outstanding units held by non-affiliated persons. If the General Partner elects to acquire all outstanding units, we are required to give at least 30 but not more than 60 days' notice of our decision to purchase the outstanding units. The purchase price per unit will be the greater of (1) the average of the previous 20 trading days' closing prices as of the date five days before the purchase is announced or (2) the highest price paid by the General Partner or any of its affiliates for any unit within the 90 days preceding the date the purchase is announced.

Net Earnings per Common Unit

Net Earnings per Common Unit	12 Months Ended
	Dec. 31, 2015
Earnings Per Unit [Abstract]
Net Earnings per Common Unit	Net Earnings per Common Unit Net earnings per common unit is based on the weighted-average number of common units outstanding during the period. The following table provides a calculation for net earnings per common unit for the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, 2015 2014 2013 (in millions, except per unit amounts) Basic earnings per Common Unit: Net earnings $ 306.9 $ 370.0 $ 502.4 Less: Net earnings allocable to General Partner 117.7 143.1 205.7 Less: Net earnings allocable to Class B Common Units 3.0 3.6 4.9 Net earnings allocable to Common Units $ 186.2 $ 223.3 $ 291.8 Weighted-average Common Units outstanding 18.5 18.5 18.5 Net earnings per Common Unit $ 10.06 $ 12.07 $ 15.77 There were no dilutive TNCLP units outstanding for the years ended December 31, 2015 , 2014 and 2013 .

Inventories

Inventories	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following: December 31, 2015 2014 (in millions) Finished goods $ 7.2 $ 7.8 Raw materials, spare parts and supplies 3.5 1.8 Total $ 10.7 $ 9.6

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Derivative financial instruments are executed on our behalf by an affiliate of the General Partner to reduce our exposure to changes in commodity prices for natural gas. Natural gas is the largest and most volatile component of the manufacturing cost for nitrogen-based fertilizers. The derivatives that we use are primarily natural gas fixed price swaps and options traded in the over-the-counter (OTC) markets. The derivative contract prices are based on NYMEX future prices based on physical delivery of natural gas at the Henry Hub in Louisiana, the most common and financially-liquid location of reference for derivative financial instruments related to natural gas. However, we purchase natural gas for our manufacturing facility from suppliers whose prices are based primarily on the ONEOK index (based on physical delivery of natural gas in Oklahoma, rather than at the Henry Hub). This creates a location basis differential between the derivative contract price and the price we pay for physical delivery of natural gas. Accordingly, the prices underlying the derivative financial instruments we use may not exactly match the prices of natural gas we purchase and consume. We enter into natural gas derivative contracts with respect to 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 gas price risk, but without the application of hedge accounting. We report derivatives on our consolidated balance sheets at fair value. Changes in fair value are recognized in cost of sales in the period of change. Cash flows related to natural gas derivatives are reported in operating activities. The gross fair values of derivatives on our consolidated balance sheets are shown below. All balance sheet amounts from derivatives arise from natural gas derivatives that are not designated as hedging instruments. For additional information on derivative fair values, see Note 8—Fair Value Measurements . December 31, 2015 2014 (in millions) Unrealized gains in other current assets $ — $ 0.1 Unrealized losses in other current liabilities (15.9 ) (3.6 ) Unrealized losses in other liabilities (12.0 ) — Net derivative liabilities $ (27.9 ) $ (3.5 ) The effect of derivatives in our consolidated statements of operations is shown below. All amounts arise from natural gas derivatives that are not designated as hedging instruments and are recorded in cost of goods sold. Year ended December 31, 2015 2014 2013 (in millions) Unrealized mark-to-market (losses) gains $ (23.1 ) $ (12.6 ) $ 9.1 Realized (losses) gains (10.6 ) 10.5 (0.8 ) Net derivative (losses) gains $ (33.7 ) $ (2.1 ) $ 8.3 As of December 31, 2015 and 2014 , we had open derivative contracts for 59.6 million MMBtus and 7.6 million MMBtus, respectively, of natural gas. The derivative portfolio includes natural gas derivatives that hedge a portion of 2016, 2017 and 2018 natural gas purchases. For the year ended December 31, 2015 , we used derivatives to cover approximately 64% of our natural gas consumption. The counterparties to our derivative contracts are multi-national commercial banks, major financial institutions and large energy companies. The derivatives are executed with several counterparties, generally under International Swaps and Derivatives Association (ISDA) agreements. The ISDA agreements are master netting arrangements commonly used for OTC derivatives that mitigate exposure to counterparty credit risk, in part, by creating contractual rights of netting and setoff, the specifics of which vary from agreement to agreement. These rights are described further below: • Settlement netting generally allows the parties to net, into a single net payable or receivable, ordinary settlement obligations arising under the ISDA agreement on the same day, in the same currency, for the same types of derivative instruments, and through the same pairing of offices. • Close-out netting rights are provided in the event of a default or other termination event (as defined in the ISDA agreements), including bankruptcy. Depending on the cause of early termination, the non-defaulting party may elect to terminate all or some transactions outstanding under the ISDA agreement. The values of all terminated transactions and certain other payments under the ISDA agreement are netted, resulting in a single net close-out amount payable to or by the non-defaulting party. Termination values may be determined using a mark-to-market approach or based on a party's good faith estimate of its loss. If the final net close-out amount is payable by the non-defaulting party, that party's obligation to make the payment may be conditioned on factors such as the termination of all derivative transactions between the parties or payment in full of all of the defaulting party's obligations to the non-defaulting party, in each case regardless of whether arising under the ISDA agreement or otherwise. • Setoff rights are provided by certain of the ISDA agreements and generally allow a non-defaulting party to elect to set off, against the final net close-out payment, other matured and contingent amounts payable between the parties under the ISDA agreement or otherwise. Typically, these setoff rights arise upon the early termination of all transactions outstanding under an ISDA agreement following a default or specified termination event. Most of the ISDA agreements contain credit-risk-related contingent features with sliding-scale credit support thresholds that are dependent upon the credit ratings of the General Partner affiliate. Downgrades in the credit ratings would cause the applicable threshold levels to decrease and improvements in those ratings could cause the threshold levels to increase. If our net liability positions exceed the threshold amounts, the counterparties could require cash collateral, some other form of credit support or daily cash settlement of unrealized losses. As of December 31, 2015 and 2014 , the aggregate fair values of the derivative instruments with credit-risk-related contingent features in a net liability position were $27.9 million and $3.6 million , respectively, which also approximates the fair value of the maximum amount of additional collateral that would need to be posted or assets needed to settle the obligations if the credit-risk-related contingent features were triggered at the reporting dates. As of December 31, 2015 and 2014 , we had no cash collateral on deposit for derivative contracts. The credit support documents executed in connection with ISDA agreements generally provide the right to set off collateral against amounts owing under the ISDA agreements upon the occurrence of a default or a specified termination event. The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of December 31, 2015 and 2014 : Gross amounts not offset in consolidated balance sheets Gross and net amounts presented in consolidated balance sheets (1) Financial instruments Cash collateral received (pledged) Net amount (in millions) December 31, 2015 Total derivative assets $ — $ — $ — $ — Total derivative liabilities (27.9 ) — — (27.9 ) Net assets (liabilities) $ (27.9 ) $ — $ — $ (27.9 ) December 31, 2014 Total derivative assets $ 0.1 $ 0.1 $ — $ — Total derivative liabilities (3.6 ) (0.1 ) — (3.5 ) Net assets (liabilities) $ (3.5 ) $ — $ — $ (3.5 ) _______________________________________________________________________________ (1) We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, amounts recognized and net amounts presented are the same.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following table presents assets and liabilities included in our consolidated balance sheets that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value as of December 31, 2015 and 2014 : Balances as of December 31, 2015 Total Quoted Market Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash and cash equivalents $ 106.4 $ 106.4 $ — $ — Total assets at fair value $ 106.4 $ 106.4 $ — $ — Unrealized losses on natural gas derivatives (27.9 ) — (27.9 ) — Total liabilities at fair value $ (27.9 ) $ — $ (27.9 ) $ — Balances as of December 31, 2014 Total Quoted Market Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash and cash equivalents $ 113.0 $ 113.0 $ — $ — Unrealized gains on natural gas derivatives 0.1 — 0.1 — Total assets at fair value $ 113.1 $ 113.0 $ 0.1 $ — Unrealized losses on natural gas derivatives $ (3.6 ) $ — $ (3.6 ) $ — Total liabilities at fair value $ (3.6 ) $ — $ (3.6 ) $ — Cash and Cash Equivalents As of December 31, 2015 and 2014 , our cash and cash equivalents consisted primarily of money market mutual funds that invest in U.S. government obligations. Natural Gas Derivatives The derivative instruments that we use are primarily natural gas fixed price swaps and options traded in the OTC markets with multi-national commercial banks, other major financial institutions and large energy companies. The derivatives are traded in months forward and settlements are scheduled to coincide with anticipated gas purchases during those future periods. These contracts settle using NYMEX futures prices and accordingly, 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 unrelated third party. See Note 7—Derivative Financial Instruments for additional information.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following: December 31, 2015 2014 (in millions) Land $ 1.6 $ 1.6 Buildings and improvements 14.5 8.1 Machinery and equipment 537.5 401.4 Construction in progress 18.9 109.2 572.5 520.3 Less: Accumulated depreciation and amortization 265.5 260.9 $ 307.0 $ 259.4 Additions to property, plant and equipment included in our consolidated statements of cash flows includes cash outflows for capital expenditures; therefore, it does not include the net (decrease) increase in amounts accrued for capital expenditures, which were $(2.2) million , $1.3 million and $4.3 million for the years ended December 31, 2015, 2014 and 2013. During 2015, we recorded losses of approximately $2.0 million on the disposal of certain machinery and equipment, which is included in other general and administrative expenses on our consolidated statements of operations. Plant turnarounds —Scheduled inspections, replacements and overhauls of machinery and equipment at our continuous process manufacturing facility are referred to as plant turnarounds. The expenditures related to turnarounds are capitalized in property, plant and equipment when incurred. The following is a summary of plant turnaround activity for 2015 , 2014 and 2013 . Year ended December 31, 2015 2014 2013 (in millions) Net capitalized turnaround costs: Beginning balance $ 16.7 $ 22.7 $ 2.6 Additions 33.6 0.3 24.7 Depreciation (12.5 ) (6.3 ) (4.6 ) Ending balance $ 37.8 $ 16.7 $ 22.7 Scheduled replacements and overhauls of plant and equipment include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors, heat exchangers and the replacement of catalyst when a full plant shutdown occurs. Scheduled inspections are also conducted during full plant shutdowns, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications. Internal employee costs and overhead are not considered turnaround costs and are not capitalized.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions TNCLP and TNGP have no employees. We have entered into several agreements with a subsidiary of CF Industries relating to the operation of our business and the sale of the fertilizer products produced at our Verdigris facility. We believe that each of these agreements is on terms that are fair and reasonable to us. General and Administrative Services and Product Offtake Agreement Pursuant to the Amendment to the General and Administrative Services and Product Offtake Agreement (the Services and Offtake Agreement), the Partnership sells all of its fertilizer products to an affiliate of the General Partner at prices based on market prices for the Partnership's fertilizer products as defined in the Services and Offtake Agreement. Title and risk of loss transfer to an affiliate of the General Partner as the product is shipped from the plant gate. The Services and Offtake Agreement is effective for annual terms starting as of January 1st and will be extended automatically for successive one -year terms unless terminated by one of the parties prior to renewal. Directly Incurred Charges Since we have no employees, we rely on employees from an affiliate of the General Partner to operate our Verdigris facility. As a result, the payroll, payroll-related expenses and benefit costs, such as health insurance and pension costs, are incurred by an affiliate of the General Partner and directly charged to us. Payroll, payroll-related expenses and other employee-related benefit costs directly charged to us for the years ended December 31, 2015 , 2014 and 2013 were $27.9 million , $24.0 million and $24.7 million , respectively. We report these expenses as services provided by affiliates of the General Partner in cost of goods sold. Allocated Charges CF Industries, together with its affiliates, also provides certain services to us under the Services and Offtake Agreement. These services include production planning, manufacturing management, logistics, procurement, accounting, legal, risk management, investor relations and other general and administrative functions. Allocated expenses charged to us for the years ended December 31, 2015 , 2014 and 2013 were $15.7 million , $15.6 million and $15.3 million , respectively. We report these expenses as selling, general and administrative services provided by affiliates of the General Partner. Amounts Due to/from Affiliates of the General Partner We receive cash and make expenditures directly from our cash accounts. Because we sell our products to and receive payroll and other related services from affiliates of the General Partner, the affiliates of the General Partner continue to be both debtors and creditors to us. As of December 31, 2015 and 2014 , we had a net balance due from affiliates of the General Partner of $5.9 million and $21.0 million , respectively. Spare Parts Sharing Agreement Affiliates of CF Industries own and operate nitrogen fertilizer complexes that utilize some equipment that is similar to equipment at our Verdigris nitrogen complex. Each of the various manufacturing complexes maintains spare parts for use in its facilities. In the event that an unplanned need arises and to help minimize manufacturing downtime, we have entered into a spare parts sharing agreement that permits spare parts to be shared among the manufacturing complexes from time to time. Parts that are borrowed from another complex under the agreement are either refurbished and returned to the lender or replaced. Leases We entered into an amended and restated lease with an affiliate of the General Partner under which the ammonia assets in our terminal in Blair, Nebraska are leased by the affiliate. The lease is effective for a five -year term ending on December 31, 2018, and the affiliate of the General Partner has options to renew for three additional five -year terms. The quarterly lease payment is $100,000 , subject to an annual inflation adjustment, and additional rent will be paid equal to all costs, expenses, and obligations incurred by the affiliate of the General Partner related to the use, occupancy and operation of the terminal. We also have leased certain of our rail cars to an affiliate of the General Partner for quarterly rental payments of $3,600 per car. This lease was effective initially for a one -year term and is extended automatically for successive one -year terms unless terminated by either party thereto prior to renewal. We recognized rental income related to the above lease agreements for the years ended December 31, 2015 , 2014 and 2013 of $0.6 million , which is reflected in other income in our consolidated statements of operations.

Asset Retirement Obligations

Asset Retirement Obligations	12 Months Ended
	Dec. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Asset Retirement Obligations Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development or normal operation of such assets. AROs are initially recognized as incurred when sufficient information exists to estimate fair value. We have unrecorded AROs at our Verdigris facility that are conditional upon cessation of operations. These AROs include certain decommissioning and pond closure activities, and the removal and disposal of certain chemicals, waste materials, structures, equipment, vessels, piping and storage tanks. The most recent estimate of the aggregate cost of these AROs expressed in 2015 dollars is $4.1 million . We have not recorded a liability for these conditional AROs as of December 31, 2015 because we do not believe there is currently a reasonable basis for estimating a date or range of dates of cessation of operations at this facility, which is necessary in order to estimate fair value. In reaching this conclusion, we considered the historical performance of the facility and have taken into account factors such as planned maintenance, asset replacements and upgrades of plant and equipment, which if conducted as in the past, can extend the physical lives of the facility indefinitely. We also considered the possibility of changes in technology, risk of obsolescence, and availability of raw materials in arriving at our conclusion.

Commitments

Commitments	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments	Commitments The Operating Partnership is committed to various non-cancelable operating leases for land, buildings and equipment. Total minimum rental payments for operating leases are insignificant for 2016 . Rent expense under non-cancelable operating leases for years ended December 31, 2015 , 2014 and 2013 was insignificant. As of December 31, 2015 , we had commitments of approximately $34.4 million related to firm quantities of gas and open purchase orders. The natural gas commitments are based on a firm quantity of natural gas at market prices. These natural gas commitments are priced at the beginning of the month of the scheduled activity. We have the option to receive and use the natural gas in our manufacturing operations or we can sell the committed natural gas at current market prices, which may be different than the price that we pay for the natural gas.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data (Unaudited)	Quarterly Financial Data (Unaudited) Summarized quarterly financial data are as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (in millions, except per unit amounts) 2015 Net sales $ 126.6 $ 153.6 $ 150.2 $ 151.3 Gross margin 65.0 103.7 74.1 83.0 Net earnings 59.0 99.3 69.4 79.2 Net earnings per Common Unit 2.03 3.31 2.23 2.49 2014 Net sales $ 177.7 $ 167.5 $ 135.1 $ 168.0 Gross margin 107.5 104.2 76.1 98.9 Net earnings 102.9 100.1 72.0 95.0 Net earnings per Common Unit 3.26 3.16 2.60 3.05

Subsequent Event

Subsequent Event	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event During the first quarter of 2016, we experienced an unscheduled outage for maintenance on one of the facility's two ammonia plants, which will result in approximately one-half of the complex being shut down for approximately two months.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Consolidation	Consolidation The consolidated financial statements of TNCLP and the accompanying notes include the accounts of the Partnership. All intercompany transactions and balances have been eliminated. Income is allocated to the General Partner and the limited partners in accordance with the provisions of the TNCLP agreement of limited partnership that provides for allocations of income between the limited partners and the General Partner in the same proportion as cash distributions declared during the year.
Revenue Recognition	Revenue Recognition The basic criteria necessary for revenue recognition are: 1) evidence that a sales arrangement exists, 2) delivery of goods has occurred, 3) the seller's price to the buyer is fixed or determinable, and 4) collectability is reasonably assured. The title and risk of loss passes to an affiliate of the General Partner as the product is shipped from the plant gate. We recognize revenue when these criteria have been met and when title and risk of loss have been transferred to an affiliate of the General Partner.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less. The carrying value of cash and cash equivalents approximates fair value.
Due to/from Affiliates of General Partner	Due to/from Affiliates of General Partner We receive cash and make expenditures directly from our cash accounts. Because we sell our products to and receive payroll and other related services from affiliates of the General Partner, the affiliates of the General Partner continue to be both debtors and creditors to us.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at face amounts less an allowance for doubtful accounts. The allowance is an estimate based on historical collection experience, current economic and market conditions, and a review of the current status of each customer's trade accounts receivable. A receivable is past due if payments have not been received within the agreed upon invoice terms. Account balances are charged-off against the allowance when management determines that it is probable the receivable will not be recovered.
Inventories, net	Inventories Inventories are reported at the lower of cost or market and are determined on a first-in, first-out or average cost basis. Inventories include the cost of materials, production labor and production overhead. Market value is reviewed quarterly. Fixed production costs related to idle capacity are not included in the cost of inventories but are charged directly to cost of sales.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method. Depreciable lives range from 10 to 40 years for buildings and 5 to 30 years for machinery and equipment. We periodically review these depreciable lives and change the estimates to reflect the results of those reviews. Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facility are referred to as plant turnarounds. Plant turnarounds are accounted for under the deferral method, as opposed to the direct expense or built-in overhaul methods. Under the deferral method, expenditures related to turnarounds are capitalized when incurred and amortized to production costs on a straight-line basis over the period benefited, which is until the next scheduled turnaround in up to 5 years . If the direct expense method were used, all turnaround costs would be expensed as incurred. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized. Turnaround costs are classified as investing activities in our consolidated statements of cash flows. For additional information, see Note 9—Property, Plant and Equipment, Net .
Recoverability of Long-Lived Assets	Recoverability of Long-Lived Assets We review property, plant and equipment and other long-lived assets in order to assess recoverability based on expected future undiscounted cash flows whenever events or circumstances indicate that the carrying value may not be recoverable. If the sum of the expected future net cash flows is less than the carrying value, an impairment loss is recognized. The impairment loss is measured as the amount by which the carrying value exceeds the fair value of the asset.
Leases	Leases Leases are classified as either operating leases or capital leases. Assets acquired under capital leases are depreciated on the same basis as property, plant and equipment. We currently do not have any capital leases. Rental payments, including rent holidays, leasehold incentives, and scheduled rent increases are expensed on a straight-line basis. Leasehold improvements are amortized over the shorter of the depreciable lives of the corresponding fixed assets or the lease term including any applicable renewals.
Income Taxes	Income Taxes As a partnership, we are not subject to income taxes. For additional information, see Note 1—Background and Basis of Presentation . The income tax liability of the individual partners is not reflected in our consolidated financial statements.
Derivative Financial Instruments	Derivative Financial Instruments Natural gas is the principal raw material used to produce nitrogen fertilizers. We use natural gas both as a chemical feedstock and as a fuel to produce ammonia and UAN. We manage the risk of changes in natural gas prices primarily through the use of derivative financial instruments. The derivative instruments that we use are primarily fixed price swaps and options traded in the over-the-counter markets. These derivatives reference NYMEX futures contract prices, which represent the basis for fair value at any given time. The derivatives are traded in months forward and settlements are scheduled to coincide with anticipated gas purchases during those future periods. We do not use derivatives for trading purposes and are not a party to any leveraged derivatives. Derivatives are recognized on our consolidated balance sheets at fair value. Cash flows related to natural gas derivatives are reported as operating activities in our consolidated statements of cash flows.
Asset Retirement Obligations	Asset Retirement Obligations Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development or normal operation of such assets. AROs are initially recognized as liabilities as incurred when sufficient information exists to estimate fair value. When initially recognized, the fair value based on discounted future cash flows is recorded both as a liability and an increase in the carrying amount of the related long-lived asset. In subsequent periods, depreciation of the asset and accretion of the liability are recorded. For additional information on AROs, see Note 11—Asset Retirement Obligations .
Environmental	Environmental Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations are expensed. Expenditures that increase the capacity or extend the useful life of an asset, improve the safety or efficiency of the operations, or mitigate or prevent future environmental contamination are capitalized. Liabilities are recorded when it is probable that a liability has been incurred and the costs can be reasonably estimated. Environmental liabilities are not discounted.
Litigation	Litigation From time to time, the Partnership is subject to ordinary, routine legal proceedings related to the usual conduct of its business. The Partnership also is involved in legal proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of its plant and facilities. Accruals for such contingencies are recorded to the extent management concludes their occurrence is probable and the financial impact of an adverse outcome is reasonably estimable. Disclosure for specific legal contingencies is provided if the likelihood of occurrence is at least reasonably possible and the exposure is considered material to the consolidated financial statements. In making determinations of likely outcomes of litigation matters, many factors are considered. These factors include, but are not limited to, past history, scientific and other evidence, and the specifics and status of each matter. If the assessment of various factors changes, the estimates may change. Predicting the outcome of claims and litigation, and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from estimates and accruals.

Agreement of Limited Partners22

Agreement of Limited Partnership (Tables)	12 Months Ended
	Dec. 31, 2015
Distributions Made to Members or Limited Partners [Abstract]
Summary of available cash distribution	Available Cash as summarized in the following table: Income and Distribution Allocation Target Limit Target Increment Common Units Class B Common Units General Partner Total Minimum Quarterly Distributions $ 0.605 $ 0.605 98.990 % 0.985 % 0.025 % 100.00 % First Target 0.715 0.110 98.990 % 0.985 % 0.025 % 100.00 % Second Target 0.825 0.110 85.859 % 0.985 % 13.156 % 100.00 % Third Target 1.045 0.220 75.758 % 0.985 % 23.257 % 100.00 % Final Target and Beyond >1.045 — 50.505 % 0.985 % 48.510 % 100.00 %
Schedule of the quarterly cash distributions paid to the unitholders and the General Partner	The quarterly cash distributions to the unitholders and the General Partner declared in 2015 and 2014 are as follows: Common Units Class B Common Units General Partner Total Distributions Declared Total Per unit Total Per unit Total (in millions, except per unit amounts) 2015 First Quarter $ 46.3 $ 2.50 $ 0.7 $ 4.03 $ 29.1 $ 76.1 Second Quarter 38.5 2.08 0.6 3.20 21.3 60.4 Third Quarter 43.6 2.36 0.7 3.74 26.5 70.8 Fourth Quarter 52.0 2.81 0.9 4.64 34.6 87.5 2014 First Quarter $ 38.8 $ 2.10 $ 0.6 $ 3.24 $ 21.7 $ 61.1 Second Quarter 55.8 3.01 0.9 5.03 38.3 95.0 Third Quarter 57.5 3.11 1.0 5.22 40.1 98.6 Fourth Quarter 33.0 1.78 0.4 2.61 16.0 49.4

Net Earnings per Common Unit (T

Net Earnings per Common Unit (Tables)	12 Months Ended
	Dec. 31, 2015
Earnings Per Unit [Abstract]
Schedule of calculation for net earnings per common unit	The following table provides a calculation for net earnings per common unit for the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, 2015 2014 2013 (in millions, except per unit amounts) Basic earnings per Common Unit: Net earnings $ 306.9 $ 370.0 $ 502.4 Less: Net earnings allocable to General Partner 117.7 143.1 205.7 Less: Net earnings allocable to Class B Common Units 3.0 3.6 4.9 Net earnings allocable to Common Units $ 186.2 $ 223.3 $ 291.8 Weighted-average Common Units outstanding 18.5 18.5 18.5 Net earnings per Common Unit $ 10.06 $ 12.07 $ 15.77

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consisted of the following: December 31, 2015 2014 (in millions) Finished goods $ 7.2 $ 7.8 Raw materials, spare parts and supplies 3.5 1.8 Total $ 10.7 $ 9.6

Derivative Financial Instrume25

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of the gross fair values of derivatives on balance sheet	The gross fair values of derivatives on our consolidated balance sheets are shown below. All balance sheet amounts from derivatives arise from natural gas derivatives that are not designated as hedging instruments. For additional information on derivative fair values, see Note 8—Fair Value Measurements . December 31, 2015 2014 (in millions) Unrealized gains in other current assets $ — $ 0.1 Unrealized losses in other current liabilities (15.9 ) (3.6 ) Unrealized losses in other liabilities (12.0 ) — Net derivative liabilities $ (27.9 ) $ (3.5 )
Schedule of effects of derivatives in consolidated statements of operations	The effect of derivatives in our consolidated statements of operations is shown below. All amounts arise from natural gas derivatives that are not designated as hedging instruments and are recorded in cost of goods sold. Year ended December 31, 2015 2014 2013 (in millions) Unrealized mark-to-market (losses) gains $ (23.1 ) $ (12.6 ) $ 9.1 Realized (losses) gains (10.6 ) 10.5 (0.8 ) Net derivative (losses) gains $ (33.7 ) $ (2.1 ) $ 8.3
Schedule of offsetting of derivative assets and liabilities	The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of December 31, 2015 and 2014 : Gross amounts not offset in consolidated balance sheets Gross and net amounts presented in consolidated balance sheets (1) Financial instruments Cash collateral received (pledged) Net amount (in millions) December 31, 2015 Total derivative assets $ — $ — $ — $ — Total derivative liabilities (27.9 ) — — (27.9 ) Net assets (liabilities) $ (27.9 ) $ — $ — $ (27.9 ) December 31, 2014 Total derivative assets $ 0.1 $ 0.1 $ — $ — Total derivative liabilities (3.6 ) (0.1 ) — (3.5 ) Net assets (liabilities) $ (3.5 ) $ — $ — $ (3.5 ) _______________________________________________________________________________ (1) We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, amounts recognized and net amounts presented are the same.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities that are recognized at fair value on a recurring basis	The following table presents assets and liabilities included in our consolidated balance sheets that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value as of December 31, 2015 and 2014 : Balances as of December 31, 2015 Total Quoted Market Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash and cash equivalents $ 106.4 $ 106.4 $ — $ — Total assets at fair value $ 106.4 $ 106.4 $ — $ — Unrealized losses on natural gas derivatives (27.9 ) — (27.9 ) — Total liabilities at fair value $ (27.9 ) $ — $ (27.9 ) $ — Balances as of December 31, 2014 Total Quoted Market Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash and cash equivalents $ 113.0 $ 113.0 $ — $ — Unrealized gains on natural gas derivatives 0.1 — 0.1 — Total assets at fair value $ 113.1 $ 113.0 $ 0.1 $ — Unrealized losses on natural gas derivatives $ (3.6 ) $ — $ (3.6 ) $ — Total liabilities at fair value $ (3.6 ) $ — $ (3.6 ) $ —

Property, Plant and Equipment27

Property, Plant and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment, net	Property, plant and equipment, net consisted of the following: December 31, 2015 2014 (in millions) Land $ 1.6 $ 1.6 Buildings and improvements 14.5 8.1 Machinery and equipment 537.5 401.4 Construction in progress 18.9 109.2 572.5 520.3 Less: Accumulated depreciation and amortization 265.5 260.9 $ 307.0 $ 259.4
Summary of plant turnaround activity	The following is a summary of plant turnaround activity for 2015 , 2014 and 2013 . Year ended December 31, 2015 2014 2013 (in millions) Net capitalized turnaround costs: Beginning balance $ 16.7 $ 22.7 $ 2.6 Additions 33.6 0.3 24.7 Depreciation (12.5 ) (6.3 ) (4.6 ) Ending balance $ 37.8 $ 16.7 $ 22.7

Quarterly Financial Data (Una28

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Summary of quarterly financial data	Summarized quarterly financial data are as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (in millions, except per unit amounts) 2015 Net sales $ 126.6 $ 153.6 $ 150.2 $ 151.3 Gross margin 65.0 103.7 74.1 83.0 Net earnings 59.0 99.3 69.4 79.2 Net earnings per Common Unit 2.03 3.31 2.23 2.49 2014 Net sales $ 177.7 $ 167.5 $ 135.1 $ 168.0 Gross margin 107.5 104.2 76.1 98.9 Net earnings 102.9 100.1 72.0 95.0 Net earnings per Common Unit 3.26 3.16 2.60 3.05

Background and Basis of Prese29

Background and Basis of Presentation (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Common
Common units and interest in the partnership
Common Units issued	18,501,576	18,501,576
Common Units outstanding	18,501,576	18,501,576
Class B Common Units
Common units and interest in the partnership
Common Units issued	184,072	184,072
Common Units outstanding	184,072	184,072
CF Industries Holdings | Common
Common units and interest in the partnership
Common units owned through subsidiaries	13,889,014
Percentage of outstanding units owned through subsidiaries	75.00%
General Partner
Common units and interest in the partnership
Ownership interest in the partnership (as a percent)	0.05%

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2015
Maximum
Property, Plant and Equipment
Turnaround period	5 years
Buildings | Minimum
Property, Plant and Equipment
Depreciable life	10 years
Buildings | Maximum
Property, Plant and Equipment
Depreciable life	40 years
Machinery and equipment | Minimum
Property, Plant and Equipment
Depreciable life	5 years
Machinery and equipment | Maximum
Property, Plant and Equipment
Depreciable life	30 years

Agreement of Limited Partners31

Agreement of Limited Partnership (Details) $ / shares in Units, $ in Millions	Feb. 08, 2016$ / shares	Dec. 31, 2015USD ($)$ / shares	Sep. 30, 2015USD ($)$ / shares	Jun. 30, 2015USD ($)$ / shares	Mar. 31, 2015USD ($)$ / shares	Dec. 31, 2014USD ($)$ / shares	Sep. 30, 2014USD ($)$ / shares	Jun. 30, 2014USD ($)$ / shares	Mar. 31, 2014USD ($)$ / shares	Dec. 31, 2015USD ($)$ / Unit	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Agreement of limited partnership
Payments of distributions to affiliates | $										$ (294.8)	$ (304.1)	$ (465.2)
Available cash received from operating partnership (as a percent)										99.00%
Total distributions declared | $		$ 87.5	$ 70.8	$ 60.4	$ 76.1	$ 49.4	$ 98.6	$ 95	$ 61.1
Number of average trading days' closing prices used to determine the purchase price of outstanding units of non-affiliates										20 days
Number of days before the purchase announcement is made, as a basis for determining the purchase price of outstanding units of non-affiliates										5 days
Minimum Quarterly Distributions
Agreement of limited partnership
Target Limit										0.605
Target Increment										0.605
Income and distribution allocation (as a percent)										100.00%
First Target
Agreement of limited partnership
Target Limit										0.715
Target Increment										0.110
Income and distribution allocation (as a percent)										100.00%
Second Target
Agreement of limited partnership
Target Limit										0.825
Target Increment										0.110
Income and distribution allocation (as a percent)										100.00%
Third Target
Agreement of limited partnership
Target Limit										1.045
Target Increment										0.220
Income and distribution allocation (as a percent)										100.00%
Final Target and Beyond
Agreement of limited partnership
Target Increment										0
Income and distribution allocation (as a percent)										100.00%
Final Target and Beyond | Minimum
Agreement of limited partnership
Target Limit										1.045
Common and Class B Common Units
Agreement of limited partnership
Cash distribution made, excluding when cumulative distribution is specified, (as a percent)										99.975%
Common Units
Agreement of limited partnership
Declared partnership distributions | $		$ 52	$ 43.6	$ 38.5	$ 46.3	$ 33	$ 57.5	$ 55.8	$ 38.8
Cash distribution declared per common limited partnership unit (in dollars per unit) | $ / shares		$ 2.81	$ 2.36	$ 2.08	$ 2.50	$ 1.78	$ 3.11	$ 3.01	$ 2.10
Common Units | Minimum Quarterly Distributions
Agreement of limited partnership
Income and distribution allocation (as a percent)										98.99%
Common Units | First Target
Agreement of limited partnership
Income and distribution allocation (as a percent)										98.99%
Common Units | Second Target
Agreement of limited partnership
Income and distribution allocation (as a percent)										85.859%
Common Units | Third Target
Agreement of limited partnership
Income and distribution allocation (as a percent)										75.758%
Common Units | Final Target and Beyond
Agreement of limited partnership
Income and distribution allocation (as a percent)										50.505%
Class B Common Units
Agreement of limited partnership
Declared partnership distributions | $		$ 0.9	$ 0.7	$ 0.6	$ 0.7	$ 0.4	$ 1	$ 0.9	$ 0.6
Cash distribution declared per common limited partnership unit (in dollars per unit) | $ / shares		$ 4.64	$ 3.74	$ 3.20	$ 4.03	$ 2.61	$ 5.22	$ 5.03	$ 3.24
Class B Common Units | Minimum Quarterly Distributions
Agreement of limited partnership
Income and distribution allocation (as a percent)										0.985%
Class B Common Units | First Target
Agreement of limited partnership
Income and distribution allocation (as a percent)										0.985%
Class B Common Units | Second Target
Agreement of limited partnership
Income and distribution allocation (as a percent)										0.985%
Class B Common Units | Third Target
Agreement of limited partnership
Income and distribution allocation (as a percent)										0.985%
Class B Common Units | Final Target and Beyond
Agreement of limited partnership
Income and distribution allocation (as a percent)										0.985%
Subsequent Event
Agreement of limited partnership
Cash distribution declared per common limited partnership unit (in dollars per unit) | $ / shares	$ 2.88
General Partner
Agreement of limited partnership
Available cash distributed from operating partnership to General Partner (as a percent)										1.00%
Cash distribution made, excluding when cumulative distribution is specified, (as a percent)										0.025%
Partnership equity interest (as a percent)		1.00%								1.00%
Declared partnership distributions | $		$ 34.6	$ 26.5	$ 21.3	$ 29.1	$ 16	$ 40.1	$ 38.3	$ 21.7
Percentage of outstanding units owned by the General Partner and its affiliates		75.30%								75.30%
Period within which highest price is paid for any unit preceding the date the purchase is announced used to determine the purchase price of outstanding units of non-affiliates										90 days
General Partner | Minimum
Agreement of limited partnership
Percentage of ownership of non-affiliates of the General Partner allowing majority owner to acquire outstanding units held by non-affiliated persons										25.00%
Notice period for making decision to purchase the outstanding units										30 days
General Partner | Maximum
Agreement of limited partnership
Notice period for making decision to purchase the outstanding units										60 days
General Partner | Minimum Quarterly Distributions
Agreement of limited partnership
Income and distribution allocation (as a percent)										0.025%
General Partner | First Target
Agreement of limited partnership
Income and distribution allocation (as a percent)										0.025%
General Partner | Second Target
Agreement of limited partnership
Income and distribution allocation (as a percent)										13.156%
General Partner | Third Target
Agreement of limited partnership
Income and distribution allocation (as a percent)										23.257%
General Partner | Final Target and Beyond
Agreement of limited partnership
Income and distribution allocation (as a percent)										48.51%

Net Earnings per Common Unit (D

Net Earnings per Common Unit (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Basic earnings per Common Unit:
Net earnings	$ 79.2	$ 69.4	$ 99.3	$ 59	$ 95	$ 72	$ 100.1	$ 102.9	$ 306.9	$ 370	$ 502.4
Weighted-average Common Units outstanding									18,500,000	18,500,000	18,500,000
Net earnings per Common Unit	$ 2.49	$ 2.23	$ 3.31	$ 2.03	$ 3.05	$ 2.60	$ 3.16	$ 3.26	$ 10.06	$ 12.07	$ 15.77
Dilutive TNCLP units outstanding									0		0

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Finished goods	$ 7.2	$ 7.8
Raw materials, spare parts and supplies	3.5	1.8
Total	$ 10.7	$ 9.6

Derivative Financial Instrume34

Derivative Financial Instruments (Details) MMBTU in Millions	12 Months Ended
	Dec. 31, 2015USD ($)MMBTU	Dec. 31, 2014USD ($)MMBTU	Dec. 31, 2013USD ($)
Effect of Derivatives on Consolidated Statement of Operations
Unrealized mark-to-market (losses) gains	$ (24,300,000)	$ (11,400,000)	$ 8,600,000
Open derivative contracts for natural gas (in MMBtus) | MMBTU	59.6	7.6
Percentage of natural gas consumption covered by derivatives	64.00%
Aggregate fair value of the derivative instruments with credit-risk-related contingent features in net liability position	$ 27,900,000	$ 3,600,000
Cash Collateral for Borrowed Securities	0	0
Total derivative assets
Gross and net amounts presented in consolidated balance sheet	0	100,000
Gross amounts not offset in consolidated balance sheet
Financial instruments	0	100,000
Cash collateral received (pledged)	0	0
Net amount	0	0
Total derivative liabilities
Gross and net amounts presented in consolidated balance sheet	(27,900,000)	(3,600,000)
Gross amounts not offset in consolidated balance sheet
Financial instruments	0	(100,000)
Cash collateral received (pledged)	0	0
Net amount	(27,900,000)	(3,500,000)
Net assets (liabilities)
Gross and net amounts presented in consolidated balance sheet	(27,900,000)	(3,500,000)
Natural gas derivatives not designated as hedging instruments
Derivative financial instruments
Unrealized gains in other current assets	0	100,000
Unrealized losses in other current liabilities	(15,900,000)	(3,600,000)
Unrealized losses in other liabilities	(12,000,000)	0
Net derivative liabilities	(27,900,000)	(3,500,000)
Effect of Derivatives on Consolidated Statement of Operations
Unrealized mark-to-market (losses) gains	(23,100,000)	(12,600,000)	9,100,000
Realized (losses) gains	(10,600,000)	10,500,000	(800,000)
Net derivative (losses) gains	$ (33,700,000)	$ (2,100,000)	$ 8,300,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Inputs, Level 1
Fair value measurements
Cash and cash equivalents	$ 106.4	$ 113
Total assets at fair value	106.4	113
Fair Value, Inputs, Level 2
Fair value measurements
Cash and cash equivalents	0
Unrealized gains on natural gas derivatives		0.1
Total assets at fair value	0	0.1
Unrealized losses on natural gas derivatives	(27.9)	(3.6)
Total liabilities at fair value	(27.9)	(3.6)
Total
Fair value measurements
Cash and cash equivalents	106.4	113
Unrealized gains on natural gas derivatives		0.1
Total assets at fair value	106.4	113.1
Unrealized losses on natural gas derivatives	(27.9)	(3.6)
Total liabilities at fair value	$ (27.9)	$ (3.6)

Property, Plant and Equipment36

Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, plant and equipment, net
Increase (Decrease) in Capitalized Expenditures in Other Liabilities	$ (2.2)	$ 1.3	$ 4.3
Gross property, plant and equipment	572.5	520.3
Less: Accumulated depreciation and amortization	265.5	260.9
Net property, plant and equipment	307	259.4
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal	2
Net capitalized turnaround costs:
Beginning balance	16.7	22.7	2.6
Additions	33.6	0.3	24.7
Depreciation	(12.5)	(6.3)	(4.6)
Ending balance	37.8	16.7	$ 22.7
Land
Property, plant and equipment, net
Gross property, plant and equipment	1.6	1.6
Buildings and improvements
Property, plant and equipment, net
Gross property, plant and equipment	14.5	8.1
Machinery and equipment
Property, plant and equipment, net
Gross property, plant and equipment	537.5	401.4
Construction in progress
Property, plant and equipment, net
Gross property, plant and equipment	$ 18.9	$ 109.2

Related Party Transactions (Det

Related Party Transactions (Details)	12 Months Ended
	Dec. 31, 2015USD ($)Term$ / Car	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Affiliate of General Partner
Related party transactions
Payroll, payroll-related expenses and other employee related benefits	$ 27,900,000	$ 24,000,000	$ 24,700,000
Due to affiliates, net	$ 5,900,000	21,000,000
Affiliate of General Partner | Services and Offtake Agreement
Related party transactions
Extended term of agreement	1 year
Affiliate of General Partner | Lease Agreements
Related party transactions
Rental income received	$ 600,000	600,000	600,000
Affiliate of General Partner | Lease Agreements | Ammonia assets
Related party transactions
Term of agreement	5 years
Number of times lease term is automatically extended under agreement | Term	3
Base quarterly rent of leased asset	$ 100,000
Affiliate of General Partner | Lease Agreements | Rail cars
Related party transactions
Extended term of agreement	1 year
Term of agreement	1 year
Quarterly rent per leased asset (in dollars per car) | $ / Car	3,600
CF Industries | Services and Offtake Agreement
Related party transactions
Allocated expenses	$ 15,700,000	$ 15,600,000	$ 15,300,000

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) $ in Millions	Dec. 31, 2015USD ($)
Asset Retirement Obligation Disclosure [Abstract]
Estimated cost of AROs expressed in 2014 dollars	$ 4.1

Commitments (Details)

Commitments (Details) $ in Millions	Dec. 31, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Commitments related to firm quantities of gas and open purchase orders	$ 34.4

Quarterly Financial Data (Una40

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 151.3	$ 150.2	$ 153.6	$ 126.6	$ 168	$ 135.1	$ 167.5	$ 177.7	$ 581.7	$ 648.3	$ 736.2
Gross margin	83	74.1	103.7	65	98.9	76.1	104.2	107.5	325.8	386.7	519.8
Net earnings	$ 79.2	$ 69.4	$ 99.3	$ 59	$ 95	$ 72	$ 100.1	$ 102.9	$ 306.9	$ 370	$ 502.4
Net earnings per Common Unit (in dollars per unit)	$ 2.49	$ 2.23	$ 3.31	$ 2.03	$ 3.05	$ 2.60	$ 3.16	$ 3.26	$ 10.06	$ 12.07	$ 15.77

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event	2 Months Ended
	Feb. 25, 2016Ammonia_plant
Subsequent Event [Line Items]
Number of Ammonia Plants Under Maintenance	1
Number of Ammonia Plants	2