Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

Document
500000050000000.510.280.50false--12-31Q3201900013244040.300.900.300.900.010.010.015000000005000000002338009032193753060.037820.035620.047590.050310.052790.054650.075290.0340.03450.0450.04950.05150.053750.071250.0340.03450.0450.04950.05150.053750.07125P3YP1YP1YP1Y00.010.01500000005000000010982408 0001324404 2019-01-01 2019-09-30 0001324404 2019-10-28 0001324404 2019-07-01 2019-09-30 0001324404 2018-07-01 2018-09-30 0001324404 2018-01-01 2018-09-30 0001324404 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001324404 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001324404 2018-12-31 0001324404 2019-09-30 0001324404 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001324404 us-gaap:NoncontrollingInterestMember 2018-12-31 0001324404 us-gaap:TreasuryStockMember 2018-12-31 0001324404 us-gaap:CommonStockMember 2018-12-31 0001324404 us-gaap:RetainedEarningsMember 2018-12-31 0001324404 us-gaap:ParentMember 2018-12-31 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001324404 us-gaap:TreasuryStockMember 2018-01-01 2018-09-30 0001324404 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001324404 us-gaap:TreasuryStockMember 2018-07-01 2018-09-30 0001324404 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001324404 us-gaap:ParentMember 2018-07-01 2018-09-30 0001324404 us-gaap:CommonStockMember 2018-06-30 0001324404 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-09-30 0001324404 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001324404 us-gaap:NoncontrollingInterestMember 2018-09-30 0001324404 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-09-30 0001324404 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001324404 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001324404 us-gaap:RetainedEarningsMember 2018-01-01 2018-09-30 0001324404 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-09-30 0001324404 us-gaap:ParentMember 2018-09-30 0001324404 us-gaap:AccountingStandardsUpdate201409Member us-gaap:CommonStockMember 2017-12-31 0001324404 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001324404 us-gaap:RetainedEarningsMember 2017-12-31 0001324404 us-gaap:ParentMember 2018-01-01 2018-09-30 0001324404 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001324404 us-gaap:AccountingStandardsUpdate201601Member 2017-12-31 0001324404 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:TreasuryStockMember 2017-12-31 0001324404 us-gaap:CommonStockMember 2018-01-01 2018-09-30 0001324404 2018-06-30 0001324404 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:CommonStockMember 2017-12-31 0001324404 us-gaap:AccountingStandardsUpdate201409Member us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001324404 us-gaap:TreasuryStockMember 2018-09-30 0001324404 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2017-12-31 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:ParentMember 2017-12-31 0001324404 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001324404 us-gaap:CommonStockMember 2017-12-31 0001324404 us-gaap:NoncontrollingInterestMember 2018-07-01 2018-09-30 0001324404 us-gaap:ParentMember 2018-06-30 0001324404 us-gaap:ParentMember 2017-12-31 0001324404 us-gaap:TreasuryStockMember 2017-12-31 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:RetainedEarningsMember 2017-12-31 0001324404 us-gaap:AccountingStandardsUpdate201409Member 2017-12-31 0001324404 us-gaap:NoncontrollingInterestMember 2017-12-31 0001324404 us-gaap:CommonStockMember 2018-09-30 0001324404 us-gaap:NoncontrollingInterestMember 2018-06-30 0001324404 us-gaap:RetainedEarningsMember 2018-06-30 0001324404 us-gaap:RetainedEarningsMember 2018-09-30 0001324404 us-gaap:AccountingStandardsUpdate201409Member us-gaap:NoncontrollingInterestMember 2017-12-31 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:NoncontrollingInterestMember 2017-12-31 0001324404 2017-12-31 0001324404 2018-09-30 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001324404 us-gaap:AccountingStandardsUpdate201409Member us-gaap:ParentMember 2017-12-31 0001324404 us-gaap:AccountingStandardsUpdate201409Member us-gaap:TreasuryStockMember 2017-12-31 0001324404 us-gaap:AccountingStandardsUpdate201409Member us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001324404 us-gaap:TreasuryStockMember 2018-06-30 0001324404 us-gaap:CommonStockMember 2019-01-01 2019-09-30 0001324404 us-gaap:CommonStockMember 2019-09-30 0001324404 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001324404 us-gaap:TreasuryStockMember 2019-01-01 2019-09-30 0001324404 us-gaap:ParentMember 2019-09-30 0001324404 us-gaap:NoncontrollingInterestMember 2019-07-01 2019-09-30 0001324404 us-gaap:ParentMember 2019-07-01 2019-09-30 0001324404 us-gaap:ParentMember 2019-01-01 2019-09-30 0001324404 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001324404 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-09-30 0001324404 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 0001324404 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001324404 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0001324404 us-gaap:TreasuryStockMember 2019-07-01 2019-09-30 0001324404 us-gaap:RetainedEarningsMember 2019-06-30 0001324404 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001324404 us-gaap:NoncontrollingInterestMember 2019-09-30 0001324404 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001324404 us-gaap:TreasuryStockMember 2019-06-30 0001324404 2019-06-30 0001324404 us-gaap:NoncontrollingInterestMember 2019-06-30 0001324404 us-gaap:TreasuryStockMember 2019-09-30 0001324404 us-gaap:RetainedEarningsMember 2019-09-30 0001324404 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001324404 us-gaap:ParentMember 2019-06-30 0001324404 us-gaap:CommonStockMember 2019-06-30 0001324404 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001324404 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001324404 cf:PointLisasNitrogenLimitedMember cf:OperatingEquityMethodInvestmentMember 2019-09-30 0001324404 2022-01-01 2019-09-30 0001324404 2020-01-01 2019-09-30 0001324404 2019-10-01 2019-09-30 0001324404 srt:NorthAmericaMember 2018-01-01 2018-09-30 0001324404 srt:NorthAmericaMember cf:UreaMember 2018-01-01 2018-09-30 0001324404 cf:EuropeandOtherMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-09-30 0001324404 cf:UreaMember 2018-01-01 2018-09-30 0001324404 cf:UANMember 2018-01-01 2018-09-30 0001324404 srt:NorthAmericaMember cf:UANMember 2019-01-01 2019-09-30 0001324404 cf:EuropeandOtherMember 2018-01-01 2018-09-30 0001324404 cf:UANMember 2019-01-01 2019-09-30 0001324404 srt:NorthAmericaMember cf:AmmoniaMember 2018-01-01 2018-09-30 0001324404 cf:EuropeandOtherMember cf:UreaMember 2019-01-01 2019-09-30 0001324404 cf:EuropeandOtherMember cf:UANMember 2019-01-01 2019-09-30 0001324404 cf:EuropeandOtherMember cf:UreaMember 2018-01-01 2018-09-30 0001324404 us-gaap:AllOtherSegmentsMember 2018-01-01 2018-09-30 0001324404 srt:NorthAmericaMember cf:AmmoniumNitrateSegmentMember 2019-01-01 2019-09-30 0001324404 srt:NorthAmericaMember cf:UreaMember 2019-01-01 2019-09-30 0001324404 cf:EuropeandOtherMember cf:AmmoniaMember 2019-01-01 2019-09-30 0001324404 cf:AmmoniaMember 2019-01-01 2019-09-30 0001324404 srt:NorthAmericaMember cf:UANMember 2018-01-01 2018-09-30 0001324404 srt:NorthAmericaMember 2019-01-01 2019-09-30 0001324404 srt:NorthAmericaMember cf:AmmoniaMember 2019-01-01 2019-09-30 0001324404 srt:NorthAmericaMember cf:AmmoniumNitrateSegmentMember 2018-01-01 2018-09-30 0001324404 cf:EuropeandOtherMember 2019-01-01 2019-09-30 0001324404 srt:NorthAmericaMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-09-30 0001324404 cf:AmmoniaMember 2018-01-01 2018-09-30 0001324404 cf:UreaMember 2019-01-01 2019-09-30 0001324404 cf:EuropeandOtherMember cf:AmmoniaMember 2018-01-01 2018-09-30 0001324404 cf:AmmoniumNitrateSegmentMember 2018-01-01 2018-09-30 0001324404 cf:EuropeandOtherMember cf:UANMember 2018-01-01 2018-09-30 0001324404 srt:NorthAmericaMember us-gaap:AllOtherSegmentsMember 2019-01-01 2019-09-30 0001324404 cf:EuropeandOtherMember us-gaap:AllOtherSegmentsMember 2018-01-01 2018-09-30 0001324404 cf:AmmoniumNitrateSegmentMember 2019-01-01 2019-09-30 0001324404 us-gaap:AllOtherSegmentsMember 2019-01-01 2019-09-30 0001324404 cf:EuropeandOtherMember cf:AmmoniumNitrateSegmentMember 2019-01-01 2019-09-30 0001324404 cf:EuropeandOtherMember cf:AmmoniumNitrateSegmentMember 2018-01-01 2018-09-30 0001324404 srt:NorthAmericaMember cf:UreaMember 2019-07-01 2019-09-30 0001324404 us-gaap:AllOtherSegmentsMember 2019-07-01 2019-09-30 0001324404 cf:UreaMember 2019-07-01 2019-09-30 0001324404 srt:NorthAmericaMember cf:AmmoniumNitrateSegmentMember 2019-07-01 2019-09-30 0001324404 cf:EuropeandOtherMember cf:AmmoniumNitrateSegmentMember 2019-07-01 2019-09-30 0001324404 cf:AmmoniaMember 2018-07-01 2018-09-30 0001324404 srt:NorthAmericaMember cf:AmmoniumNitrateSegmentMember 2018-07-01 2018-09-30 0001324404 cf:EuropeandOtherMember cf:UANMember 2018-07-01 2018-09-30 0001324404 srt:NorthAmericaMember cf:UreaMember 2018-07-01 2018-09-30 0001324404 srt:NorthAmericaMember us-gaap:AllOtherSegmentsMember 2018-07-01 2018-09-30 0001324404 srt:NorthAmericaMember 2019-07-01 2019-09-30 0001324404 cf:UreaMember 2018-07-01 2018-09-30 0001324404 srt:NorthAmericaMember cf:AmmoniaMember 2019-07-01 2019-09-30 0001324404 us-gaap:AllOtherSegmentsMember 2018-07-01 2018-09-30 0001324404 cf:EuropeandOtherMember 2018-07-01 2018-09-30 0001324404 cf:EuropeandOtherMember cf:UANMember 2019-07-01 2019-09-30 0001324404 cf:EuropeandOtherMember cf:UreaMember 2018-07-01 2018-09-30 0001324404 srt:NorthAmericaMember cf:UANMember 2018-07-01 2018-09-30 0001324404 srt:NorthAmericaMember 2018-07-01 2018-09-30 0001324404 cf:EuropeandOtherMember cf:UreaMember 2019-07-01 2019-09-30 0001324404 cf:UANMember 2018-07-01 2018-09-30 0001324404 cf:UANMember 2019-07-01 2019-09-30 0001324404 cf:AmmoniumNitrateSegmentMember 2018-07-01 2018-09-30 0001324404 cf:EuropeandOtherMember 2019-07-01 2019-09-30 0001324404 srt:NorthAmericaMember us-gaap:AllOtherSegmentsMember 2019-07-01 2019-09-30 0001324404 cf:EuropeandOtherMember cf:AmmoniaMember 2018-07-01 2018-09-30 0001324404 cf:AmmoniaMember 2019-07-01 2019-09-30 0001324404 srt:NorthAmericaMember cf:UANMember 2019-07-01 2019-09-30 0001324404 cf:EuropeandOtherMember cf:AmmoniumNitrateSegmentMember 2018-07-01 2018-09-30 0001324404 cf:EuropeandOtherMember us-gaap:AllOtherSegmentsMember 2019-07-01 2019-09-30 0001324404 cf:AmmoniumNitrateSegmentMember 2019-07-01 2019-09-30 0001324404 cf:EuropeandOtherMember us-gaap:AllOtherSegmentsMember 2018-07-01 2018-09-30 0001324404 cf:EuropeandOtherMember cf:AmmoniaMember 2019-07-01 2019-09-30 0001324404 srt:NorthAmericaMember cf:AmmoniaMember 2018-07-01 2018-09-30 0001324404 2023-01-01 2019-09-30 0001324404 2021-01-01 2019-09-30 0001324404 us-gaap:BuildingAndBuildingImprovementsMember 2018-12-31 0001324404 us-gaap:MachineryAndEquipmentMember 2019-09-30 0001324404 us-gaap:BuildingAndBuildingImprovementsMember 2019-09-30 0001324404 us-gaap:LandMember 2019-09-30 0001324404 us-gaap:MachineryAndEquipmentMember 2018-12-31 0001324404 us-gaap:LandMember 2018-12-31 0001324404 us-gaap:ConstructionInProgressMember 2019-09-30 0001324404 us-gaap:ConstructionInProgressMember 2018-12-31 0001324404 us-gaap:MachineryAndEquipmentMember 2018-09-30 0001324404 us-gaap:MachineryAndEquipmentMember 2019-01-01 2019-09-30 0001324404 us-gaap:MachineryAndEquipmentMember 2018-01-01 2018-09-30 0001324404 us-gaap:MachineryAndEquipmentMember 2017-12-31 0001324404 2018-01-01 2018-12-31 0001324404 2019-04-01 2019-06-30 0001324404 2017-01-01 2017-12-31 0001324404 cf:UANMember 2019-09-30 0001324404 cf:AmmoniumNitrateSegmentMember 2019-09-30 0001324404 cf:OtherProductsMember 2019-01-01 2019-09-30 0001324404 cf:OtherProductsMember 2019-09-30 0001324404 cf:AmmoniaMember 2019-09-30 0001324404 cf:AmmoniaMember 2018-12-31 0001324404 cf:AmmoniumNitrateSegmentMember 2018-12-31 0001324404 cf:UANMember 2018-12-31 0001324404 cf:OtherProductsMember 2018-12-31 0001324404 cf:UreaMember 2018-12-31 0001324404 cf:UreaMember 2019-09-30 0001324404 us-gaap:TradeNamesMember 2018-12-31 0001324404 us-gaap:CustomerRelationshipsMember 2018-12-31 0001324404 us-gaap:CustomerRelationshipsMember 2019-09-30 0001324404 us-gaap:TrademarksMember 2019-09-30 0001324404 us-gaap:TradeNamesMember 2019-09-30 0001324404 us-gaap:TrademarksMember 2018-12-31 0001324404 srt:MaximumMember us-gaap:PropertyPlantAndEquipmentMember cf:OperatingEquityMethodInvestmentMember 2019-01-01 2019-09-30 0001324404 cf:PointLisasNitrogenLimitedMember cf:TheBoardofInlandRevenueMember cf:OperatingEquityMethodInvestmentMember 2019-09-30 0001324404 cf:PointLisasNitrogenLimitedMember cf:OperatingEquityMethodInvestmentMember 2018-01-01 2018-09-30 0001324404 cf:PointLisasNitrogenLimitedMember cf:OperatingEquityMethodInvestmentMember 2018-07-01 2018-09-30 0001324404 cf:PointLisasNitrogenLimitedMember cf:OperatingEquityMethodInvestmentMember 2019-01-01 2019-09-30 0001324404 cf:PointLisasNitrogenLimitedMember cf:TheBoardofInlandRevenueMember cf:OperatingEquityMethodInvestmentMember 2019-01-01 2019-09-30 0001324404 cf:PointLisasNitrogenLimitedMember cf:TheBoardofInlandRevenueMember cf:OperatingEquityMethodInvestmentMember 2018-01-01 2018-09-30 0001324404 cf:PointLisasNitrogenLimitedMember cf:OperatingEquityMethodInvestmentMember 2019-07-01 2019-09-30 0001324404 cf:PointLisasNitrogenLimitedMember cf:TheBoardofInlandRevenueMember 2019-09-30 0001324404 us-gaap:TrustForBenefitOfEmployeesMember 2018-12-31 0001324404 us-gaap:OtherDebtSecuritiesMember 2018-12-31 0001324404 us-gaap:USGovernmentDebtSecuritiesMember 2018-12-31 0001324404 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001324404 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001324404 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001324404 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001324404 us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001324404 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001324404 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001324404 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001324404 2018-10-01 2018-12-31 0001324404 us-gaap:USGovernmentDebtSecuritiesMember 2019-09-30 0001324404 us-gaap:TrustForBenefitOfEmployeesMember 2019-09-30 0001324404 us-gaap:OtherDebtSecuritiesMember 2019-09-30 0001324404 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001324404 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001324404 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001324404 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001324404 2016-10-01 2016-12-31 0001324404 2017-10-01 2017-12-31 0001324404 stpr:LA us-gaap:StateAndLocalJurisdictionMember 2019-01-01 2019-09-30 0001324404 srt:SubsidiariesMember cf:SeniorNotes4.500PercentDue2026Member us-gaap:SeniorNotesMember 2018-12-31 0001324404 srt:SubsidiariesMember cf:SeniorNotes4.950PercentDue2043Member us-gaap:SeniorNotesMember 2019-09-30 0001324404 srt:SubsidiariesMember cf:SeniorNotes5.375PercentDue2044Member us-gaap:SeniorNotesMember 2018-12-31 0001324404 srt:SubsidiariesMember cf:SeniorNotes5.375PercentDue2044Member us-gaap:SeniorNotesMember 2019-09-30 0001324404 srt:SubsidiariesMember cf:UnsecuredSeniorNotes7.125PercentDue2020Member us-gaap:SeniorNotesMember 2019-09-30 0001324404 srt:SubsidiariesMember cf:SeniorNotes3.450PercentDue2023Member us-gaap:SeniorNotesMember 2018-12-31 0001324404 srt:SubsidiariesMember cf:SeniorNotes5.150PercentDue2034Member us-gaap:SeniorNotesMember 2018-12-31 0001324404 srt:SubsidiariesMember cf:UnsecuredSeniorNotes7.125PercentDue2020Member us-gaap:SeniorNotesMember 2018-12-31 0001324404 srt:SubsidiariesMember cf:SeniorNotes3.400PercentDue2021MemberMember us-gaap:SeniorNotesMember 2019-09-30 0001324404 srt:SubsidiariesMember cf:SeniorNotes5.150PercentDue2034Member us-gaap:SeniorNotesMember 2019-09-30 0001324404 srt:SubsidiariesMember cf:SeniorNotes4.500PercentDue2026Member us-gaap:SeniorNotesMember 2019-09-30 0001324404 srt:SubsidiariesMember cf:SeniorNotes4.950PercentDue2043Member us-gaap:SeniorNotesMember 2018-12-31 0001324404 srt:SubsidiariesMember cf:SeniorNotes3.400PercentDue2021MemberMember us-gaap:SeniorNotesMember 2018-12-31 0001324404 srt:SubsidiariesMember cf:SeniorNotes3.450PercentDue2023Member us-gaap:SeniorNotesMember 2019-09-30 0001324404 srt:SubsidiariesMember cf:SeniorNotes3.400PercentDue2021MemberMember us-gaap:SeniorNotesMember 2016-11-21 0001324404 srt:SubsidiariesMember 2019-09-30 0001324404 srt:SubsidiariesMember us-gaap:LetterOfCreditMember cf:July2016CreditAgreementAmendmentMember us-gaap:LineOfCreditMember 2016-07-29 0001324404 srt:SubsidiariesMember cf:SeniorCreditAgreementMember 2019-09-30 0001324404 srt:SubsidiariesMember us-gaap:RevolvingCreditFacilityMember cf:AmendmentNo.3totheThirdAmendedandRestatedRevolvingCreditAgreementMember us-gaap:LineOfCreditMember 2016-10-31 0001324404 srt:SubsidiariesMember 2018-12-31 0001324404 us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2019-09-30 0001324404 srt:SubsidiariesMember cf:SeniorNotes4.500PercentDue2026Member us-gaap:SeniorNotesMember 2016-11-21 0001324404 srt:SubsidiariesMember cf:SeniorCreditAgreementMember 2018-12-31 0001324404 srt:MaximumMember 2019-09-30 0001324404 srt:MaximumMember us-gaap:RailroadTransportationEquipmentMember 2019-09-30 0001324404 srt:MaximumMember us-gaap:MaritimeEquipmentMember 2019-09-30 0001324404 srt:MaximumMember srt:WarehouseMember 2019-09-30 0001324404 srt:MinimumMember us-gaap:RailroadTransportationEquipmentMember 2019-09-30 0001324404 srt:MinimumMember 2019-09-30 0001324404 srt:MinimumMember srt:WarehouseMember 2019-09-30 0001324404 srt:MinimumMember us-gaap:MaritimeEquipmentMember 2019-09-30 0001324404 cf:CFIndustriesNitrogenLLCMember 2018-01-01 2018-09-30 0001324404 cf:CFIndustriesNitrogenLLCMember 2017-12-31 0001324404 cf:CFIndustriesNitrogenLLCMember 2019-09-30 0001324404 srt:PartnershipInterestMember 2018-09-30 0001324404 srt:PartnershipInterestMember 2017-12-31 0001324404 cf:CFIndustriesNitrogenLLCMember 2019-01-01 2019-09-30 0001324404 srt:PartnershipInterestMember 2018-01-01 2018-09-30 0001324404 cf:CFIndustriesNitrogenLLCMember 2018-09-30 0001324404 cf:CFIndustriesNitrogenLLCMember 2018-12-31 0001324404 srt:PartnershipInterestMember 2018-04-01 0001324404 cf:TerraNitrogenGPIncMember cf:TerraNitrogenCompanyLPMember 2018-04-02 0001324404 cf:TerraNitrogenGPIncMember cf:TerraNitrogenCompanyLPMember 2018-02-07 0001324404 cf:CFIndustriesNitrogenLLCMember cf:CHSInc.Member 2016-02-01 0001324404 cf:TerraNitrogenGPIncMember cf:TerraNitrogenCompanyLPMember 2018-04-02 2018-04-02 0001324404 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-09-30 0001324404 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-09-30 0001324404 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 2018-09-30 0001324404 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-01-01 2019-09-30 0001324404 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-09-30 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0001324404 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-12-31 0001324404 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-09-30 0001324404 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-01-01 2018-09-30 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-12-31 0001324404 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-09-30 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-12-31 0001324404 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-12-31 0001324404 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-09-30 0001324404 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-01-01 2019-09-30 0001324404 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-09-30 0001324404 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-12-31 0001324404 us-gaap:AccumulatedTranslationAdjustmentMember 2018-09-30 0001324404 us-gaap:AccountingStandardsUpdate201601Member us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0001324404 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-09-30 0001324404 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0001324404 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-09-30 0001324404 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001324404 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001324404 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0001324404 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0001324404 us-gaap:AccumulatedTranslationAdjustmentMember 2019-09-30 0001324404 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-09-30 0001324404 2018-08-01 0001324404 2019-02-13 0001324404 2019-01-01 2019-03-31 0001324404 us-gaap:PendingLitigationMember 2015-04-17 2015-04-17 0001324404 us-gaap:SettledLitigationMember 2019-01-01 2019-09-30 0001324404 us-gaap:PendingLitigationMember 2013-04-17 2013-04-17 0001324404 stpr:ID 2015-01-01 2015-12-31 0001324404 us-gaap:OperatingSegmentsMember cf:AmmoniaMember 2018-07-01 2018-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:AmmoniaMember 2019-07-01 2019-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:OtherProductsMember 2018-07-01 2018-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:UANMember 2019-07-01 2019-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:AmmoniumNitrateSegmentMember 2018-07-01 2018-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:AmmoniumNitrateSegmentMember 2019-07-01 2019-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:UreaMember 2019-07-01 2019-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:UANMember 2018-07-01 2018-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:UreaMember 2018-07-01 2018-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:OtherProductsMember 2019-07-01 2019-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:UreaMember 2019-01-01 2019-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:UANMember 2018-01-01 2018-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:UreaMember 2018-01-01 2018-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:AmmoniaMember 2019-01-01 2019-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:OtherProductsMember 2018-01-01 2018-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:AmmoniumNitrateSegmentMember 2018-01-01 2018-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:AmmoniaMember 2018-01-01 2018-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:UANMember 2019-01-01 2019-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:OtherProductsMember 2019-01-01 2019-09-30 0001324404 us-gaap:OperatingSegmentsMember cf:AmmoniumNitrateSegmentMember 2019-01-01 2019-09-30 0001324404 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-09-30 0001324404 srt:SubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-09-30 0001324404 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-09-30 0001324404 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-09-30 0001324404 srt:ConsolidationEliminationsMember 2018-01-01 2018-09-30 0001324404 srt:SubsidiariesMember srt:ReportableLegalEntitiesMember 2019-09-30 0001324404 srt:ConsolidationEliminationsMember 2019-09-30 0001324404 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-09-30 0001324404 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-09-30 0001324404 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-09-30 0001324404 srt:SubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-09-30 0001324404 srt:ConsolidationEliminationsMember 2019-01-01 2019-09-30 0001324404 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-09-30 0001324404 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-09-30 0001324404 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-09-30 0001324404 srt:SubsidiariesMember srt:ReportableLegalEntitiesMember 2019-07-01 2019-09-30 0001324404 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-07-01 2019-09-30 0001324404 srt:ConsolidationEliminationsMember 2019-07-01 2019-09-30 0001324404 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-07-01 2019-09-30 0001324404 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-07-01 2019-09-30 0001324404 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-07-01 2018-09-30 0001324404 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-07-01 2018-09-30 0001324404 srt:ConsolidationEliminationsMember 2018-07-01 2018-09-30 0001324404 srt:SubsidiariesMember srt:ReportableLegalEntitiesMember 2018-07-01 2018-09-30 0001324404 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-07-01 2018-09-30 0001324404 srt:SubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001324404 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001324404 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001324404 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-12-31 0001324404 srt:ConsolidationEliminationsMember 2018-12-31 0001324404 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0001324404 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0001324404 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-09-30 0001324404 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-09-30 0001324404 srt:ReportableLegalEntitiesMember 2018-01-01 2018-09-30 0001324404 srt:SubsidiariesMember srt:ReportableLegalEntitiesMember 2018-09-30 0001324404 srt:ConsolidationEliminationsMember 2018-09-30 0001324404 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-09-30 0001324404 srt:ConsolidationEliminationsMember 2017-12-31 0001324404 cf:AllOtherSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-09-30 0001324404 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2017-12-31 0001324404 srt:SubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0001324404 srt:SubsidiariesMember cf:SeniorNotes3.400PercentDue2021MemberMember us-gaap:SeniorNotesMember us-gaap:SubsequentEventMember 2019-10-30 2019-10-30 0001324404 srt:SubsidiariesMember cf:SeniorNotes3.400PercentDue2021MemberMember us-gaap:SeniorNotesMember us-gaap:SubsequentEventMember 2019-10-30 0001324404 srt:SubsidiariesMember cf:SeniorNotes3.400PercentDue2021MemberMember us-gaap:SeniorNotesMember us-gaap:SubsequentEventMember 2019-10-28 0001324404 srt:SubsidiariesMember cf:UnsecuredSeniorNotes7.125PercentDue2020Member us-gaap:SeniorNotesMember us-gaap:SubsequentEventMember 2019-10-09 0001324404 srt:SubsidiariesMember cf:UnsecuredSeniorNotes7.125PercentDue2020Member us-gaap:SeniorNotesMember us-gaap:SubsequentEventMember 2019-10-28 xbrli:pure iso4217:USD xbrli:shares iso4217:USD xbrli:shares cf:Insurance_company cf:mine cf:People utreg:T cf:Litigation_case cf:Plaintiff cf:Entity
Table of Contents
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
10-Q
(Mark One)
 
 
 
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from                               to                              
Commission file number 001-32597
CF INDUSTRIES HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware
 
 
 
 
20-2697511
(State or other jurisdiction of
incorporation or organization)
 
 
 
 
(I.R.S. Employer
Identification No.)
 
 
 
 
 
 
 
 
4 Parkway North, Suite 400
 
 
 
 
60015
Deerfield,
Illinois
 
 
 
 
 (Zip Code)
 (Address of principal executive offices)
 
 
 
 
 
(847) 405-2400
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading symbol(s)
 
Name of each exchange on which registered
common stock, par value $0.01 per share
 
CF
 
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No
217,431,811 shares of the registrant’s common stock, par value $0.01 per share, were outstanding at October 28, 2019.
 


Table of Contents
CF INDUSTRIES HOLDINGS, INC.



TABLE OF CONTENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Table of Contents
CF INDUSTRIES HOLDINGS, INC.



PART I—FINANCIAL INFORMATION
ITEM 1.    FINANCIAL STATEMENTS.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
Three months ended 
 September 30,
 
Nine months ended 
 September 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions, except per share amounts)
Net sales
$
1,038

 
$
1,040

 
$
3,541

 
$
3,297

Cost of sales
810

 
867

 
2,594

 
2,622

Gross margin
228

 
173

 
947

 
675

Selling, general and administrative expenses
56

 
53

 
176

 
163

Other operating—net
(30
)
 
(11
)
 
(63
)
 
(29
)
Total other operating costs and expenses
26

 
42

 
113

 
134

Equity in (losses) earnings of operating affiliate
(14
)
 
5

 
(6
)
 
30

Operating earnings
188

 
136

 
828

 
571

Interest expense
63

 
59

 
182

 
180

Interest income
(4
)
 
(4
)
 
(12
)
 
(9
)
Other non-operating—net
(4
)
 
(2
)
 
(7
)
 
(6
)
Earnings before income taxes
133

 
83

 
665

 
406

Income tax provision
19

 
12

 
113

 
73

Net earnings
114

 
71

 
552

 
333

Less: Net earnings attributable to noncontrolling interests
49

 
41

 
114

 
92

Net earnings attributable to common stockholders
$
65

 
$
30

 
$
438

 
$
241

Net earnings per share attributable to common stockholders:
 

 
 

 
 

 
 

Basic
$
0.29

 
$
0.13

 
$
1.98

 
$
1.03

Diluted
$
0.29

 
$
0.13

 
$
1.97

 
$
1.03

Weighted-average common shares outstanding:
 
 
 
 
 

 
 

Basic
219.0

 
233.5

 
221.2

 
233.8

Diluted
220.7

 
235.2

 
222.5

 
234.9

Dividends declared per common share
$
0.30

 
$
0.30

 
$
0.90

 
$
0.90


See accompanying Notes to Unaudited Consolidated Financial Statements.


1

Table of Contents
CF INDUSTRIES HOLDINGS, INC.



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
Three months ended 
 September 30,
 
Nine months ended 
 September 30,
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Net earnings
$
114

 
$
71

 
$
552

 
$
333

Other comprehensive (loss) income:
 

 
 

 
 

 
 

Foreign currency translation adjustment—net of taxes
(32
)
 

 
(8
)
 
(50
)
Unrealized loss on securities—net of taxes

 

 

 
(1
)
Defined benefit plans—net of taxes
2

 
1

 
5

 
7

 
(30
)
 
1

 
(3
)
 
(44
)
Comprehensive income
84

 
72

 
549

 
289

Less: Comprehensive income attributable to noncontrolling interests
49

 
41

 
114

 
92

Comprehensive income attributable to common stockholders
$
35

 
$
31

 
$
435

 
$
197

See accompanying Notes to Unaudited Consolidated Financial Statements.


2

Table of Contents
CF INDUSTRIES HOLDINGS, INC.



CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
 
 
 
September 30,
2019
 
December 31,
2018
 
(in millions, except share
and per share amounts)
Assets
 

 
 

Current assets:
 

 
 

Cash and cash equivalents
$
1,019

 
$
682

Accounts receivable—net
311

 
235

Inventories
296

 
309

Prepaid income taxes
17

 
28

Other current assets
26

 
20

Total current assets
1,669

 
1,274

Property, plant and equipment—net
8,247

 
8,623

Investment in affiliate
87

 
93

Goodwill
2,344

 
2,353

Operating lease right-of-use assets
264

 

Other assets
291

 
318

Total assets
$
12,902

 
$
12,661

Liabilities and Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable and accrued expenses
$
459

 
$
545

Income taxes payable
7

 
5

Customer advances
184

 
149

Current operating lease liabilities
87

 

Current maturities of long-term debt
499

 

Other current liabilities
9

 
6

Total current liabilities
1,245

 
705

Long-term debt, net of current maturities
4,204

 
4,698

Deferred income taxes
1,235

 
1,117

Operating lease liabilities
181

 

Other liabilities
356

 
410

Equity:
 

 
 

Stockholders’ equity:
 

 
 

Preferred stock—$0.01 par value, 50,000,000 shares authorized

 

Common stock—$0.01 par value, 500,000,000 shares authorized, 2019—219,375,306 shares issued and 2018—233,800,903 shares issued
2

 
2

Paid-in capital
1,317

 
1,368

Retained earnings
2,109

 
2,463

Treasury stock—at cost, 2019—1,534,045 shares and 2018—10,982,408 shares
(74
)
 
(504
)
Accumulated other comprehensive loss
(374
)
 
(371
)
Total stockholders’ equity
2,980

 
2,958

Noncontrolling interest
2,701

 
2,773

Total equity
5,681

 
5,731

Total liabilities and equity
$
12,902

 
$
12,661

See accompanying Notes to Unaudited Consolidated Financial Statements.

3

Table of Contents
CF INDUSTRIES HOLDINGS, INC.



CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
 
Common Stockholders
 
 
 
 
 
$0.01 Par
Value
Common
Stock
 
Treasury
Stock
 
Paid-In
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Total
Stockholders’ Equity
 
Noncontrolling
Interest
 
Total
Equity
 
(in millions, except per share amounts)
Balance as of June 30, 2019
$
2

 
$
(2
)
 
$
1,299

 
$
2,111

 
$
(344
)
 
$
3,066

 
$
2,752

 
$
5,818

Net earnings

 

 

 
65

 

 
65

 
49

 
114

Other comprehensive loss

 

 

 

 
(30
)
 
(30
)
 

 
(30
)
Purchases of treasury stock

 
(72
)
 

 

 

 
(72
)
 

 
(72
)
Issuance of $0.01 par value common stock under employee stock plans

 

 
11

 

 

 
11

 

 
11

Stock-based compensation expense

 

 
7

 

 

 
7

 

 
7

Cash dividends ($0.30 per share)

 

 

 
(67
)
 

 
(67
)
 

 
(67
)
Distribution declared to noncontrolling interest

 

 

 

 

 

 
(100
)
 
(100
)
Balance as of September 30, 2019
$
2

 
$
(74
)
 
$
1,317

 
$
2,109

 
$
(374
)
 
$
2,980

 
$
2,701

 
$
5,681

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2018
$
2

 
$
(504
)
 
$
1,368

 
$
2,463

 
$
(371
)
 
$
2,958

 
$
2,773

 
$
5,731

Net earnings

 

 

 
438

 

 
438

 
114

 
552

Other comprehensive loss

 

 

 

 
(3
)
 
(3
)
 

 
(3
)
Purchases of treasury stock

 
(250
)
 

 

 

 
(250
)
 

 
(250
)
Retirement of treasury stock

 
682

 
(90
)
 
(592
)
 

 

 

 

Acquisition of treasury stock under employee stock plans

 
(4
)
 

 

 

 
(4
)
 

 
(4
)
Issuance of $0.01 par value common stock under employee stock plans

 
2

 
15

 

 

 
17

 

 
17

Stock-based compensation expense

 

 
24

 

 

 
24

 

 
24

Cash dividends ($0.90 per share)

 

 

 
(200
)
 

 
(200
)
 

 
(200
)
Distribution declared to noncontrolling interest

 

 

 

 

 

 
(186
)
 
(186
)
Balance as of September 30, 2019
$
2

 
$
(74
)
 
$
1,317

 
$
2,109

 
$
(374
)
 
$
2,980

 
$
2,701

 
$
5,681

(Continued)




CONSOLIDATED STATEMENTS OF EQUITY
(Continued) (Unaudited)
 
Common Stockholders
 
 
 
 
 
$0.01 Par
Value
Common
Stock
 
Treasury
Stock
 
Paid-In
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Total
Stockholders’ Equity
 
Noncontrolling
Interests
 
Total
Equity
 
(in millions, except per share amounts)
Balance as of June 30, 2018
$
2

 
$

 
$
1,349

 
$
2,514

 
$
(309
)
 
$
3,556

 
$
2,766

 
$
6,322

Net earnings

 

 

 
30

 

 
30

 
41

 
71

Other comprehensive income

 

 

 

 
1

 
1

 

 
1

Purchases of treasury stock

 
(91
)
 

 

 

 
(91
)
 

 
(91
)
Acquisition of treasury stock under employee stock plans

 
(1
)
 

 

 

 
(1
)
 

 
(1
)
Issuance of $0.01 par value common stock under employee stock plans

 

 
6

 

 

 
6

 

 
6

Stock-based compensation expense

 

 
5

 

 

 
5

 

 
5

Cash dividends ($0.30 per share)

 

 

 
(70
)
 

 
(70
)
 

 
(70
)
Distribution declared to noncontrolling interest

 

 

 

 

 

 
(80
)
 
(80
)
Balance as of September 30, 2018
$
2

 
$
(92
)
 
$
1,360

 
$
2,474

 
$
(308
)
 
$
3,436

 
$
2,727

 
$
6,163

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2017
$
2

 
$

 
$
1,397

 
$
2,443

 
$
(263
)
 
$
3,579

 
$
3,105

 
$
6,684

Adoption of ASU No. 2014-09

 

 

 
(1
)
 

 
(1
)
 

 
(1
)
Adoption of ASU No. 2016-01

 

 

 
1

 
(1
)
 

 

 

Net earnings

 

 

 
241

 

 
241

 
92

 
333

Other comprehensive loss

 

 

 

 
(44
)
 
(44
)
 

 
(44
)
Purchases of treasury stock

 
(91
)
 

 

 

 
(91
)
 

 
(91
)
Acquisition of treasury stock under employee stock plans

 
(1
)
 
(1
)
 

 

 
(2
)
 

 
(2
)
Issuance of $0.01 par value common stock under employee stock plans

 

 
10

 

 

 
10

 

 
10

Stock-based compensation expense

 

 
16

 

 

 
16

 

 
16

Cash dividends ($0.90 per share)

 

 

 
(210
)
 

 
(210
)
 

 
(210
)
Acquisition of noncontrolling interests in TNCLP

 

 
(62
)
 

 

 
(62
)
 
(331
)
 
(393
)
Distribution declared to noncontrolling interests

 

 

 

 

 

 
(139
)
 
(139
)
Balance as of September 30, 2018
$
2

 
$
(92
)
 
$
1,360

 
$
2,474

 
$
(308
)
 
$
3,436

 
$
2,727

 
$
6,163


See accompanying Notes to Unaudited Consolidated Financial Statements.

4

Table of Contents
CF INDUSTRIES HOLDINGS, INC.



CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Nine months ended 
 September 30,
 
2019
 
2018
 
(in millions)
Operating Activities:
 

 
 

Net earnings
$
552

 
$
333

Adjustments to reconcile net earnings to net cash provided by operating activities:
 

 
 

Depreciation and amortization
663

 
667

Deferred income taxes
116

 
37

Stock-based compensation expense
24

 
17

Unrealized net loss (gain) on natural gas derivatives
3

 
(11
)
Unrealized loss on embedded derivative
3

 
2

Gain on disposal of property, plant and equipment
(43
)
 
(1
)
Undistributed losses (earnings) of affiliate—net of taxes
3

 
(5
)
Changes in:
 

 
 

Accounts receivable—net
(79
)
 
31

Inventories
17

 
(3
)
Accrued and prepaid income taxes
12

 
13

Accounts payable and accrued expenses
(67
)
 
(26
)
Customer advances
35

 
224

Other—net
(36
)
 
(35
)
Net cash provided by operating activities
1,203

 
1,243

Investing Activities:
 

 
 

Additions to property, plant and equipment
(297
)
 
(278
)
Proceeds from sale of property, plant and equipment
71

 
19

Distributions received from unconsolidated affiliate

 
10

Insurance proceeds for property, plant and equipment
15

 
10

Other—net

 
1

Net cash used in investing activities
(211
)
 
(238
)
Financing Activities:
 

 
 

Financing fees

 
1

Dividends paid on common stock
(200
)
 
(210
)
Acquisition of noncontrolling interests in TNCLP

 
(388
)
Distributions to noncontrolling interests
(186
)
 
(139
)
Purchases of treasury stock
(280
)
 
(87
)
Issuances of common stock under employee stock plans
17

 
10

Shares withheld for taxes
(4
)
 
(1
)
Net cash used in financing activities
(653
)
 
(814
)
Effect of exchange rate changes on cash and cash equivalents
(2
)
 
(4
)
Increase in cash and cash equivalents
337

 
187

Cash and cash equivalents at beginning of period
682

 
835

Cash and cash equivalents at end of period
$
1,019

 
$
1,022

See accompanying Notes to Unaudited Consolidated Financial Statements.

5

Table of Contents
CF INDUSTRIES HOLDINGS, INC.



NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1.   Background and Basis of Presentation
We are a leading global fertilizer and chemical company. Our 3,000 employees operate world-class manufacturing complexes in Canada, the United Kingdom and the United States. Our principal customers are cooperatives, independent fertilizer distributors, traders, wholesalers, farmers and industrial users. Our principal nitrogen fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Our other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to our industrial customers, and compound fertilizer products (NPKs), which are solid granular fertilizer products for which the nutrient content is a combination of nitrogen, phosphorus, and potassium. We serve our customers in North America through our production, storage, transportation and distribution network. We also reach a global customer base with exports from our Donaldsonville, Louisiana, plant, the world’s largest and most flexible nitrogen complex. Additionally, we move product to international destinations from our Verdigris, Oklahoma, facility, our Yazoo City, Mississippi, facility, our Billingham and Ince facilities in the United Kingdom, and from a joint venture ammonia facility in the Republic of Trinidad and Tobago in which we own a 50 percent interest.
All references to “CF Holdings,” “the Company,” “we,” “us” and “our” refer to CF Industries Holdings, Inc. and its subsidiaries, except where the context makes clear that the reference is only to CF Industries Holdings, Inc. itself and not its subsidiaries. All references to “CF Industries” refer to CF Industries, Inc., a 100% owned subsidiary of CF Industries Holdings, Inc.
The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2018, in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting. In the opinion of management, these statements reflect all adjustments, consisting only of normal and recurring adjustments, that are necessary for the fair representation of the information for the periods presented. The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Operating results for any period presented apply to that period only and are not necessarily indicative of results for any future period.
The accompanying unaudited interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and related disclosures included in our 2018 Annual Report on Form 10-K filed with the SEC on February 22, 2019. The preparation of the unaudited interim consolidated financial statements requires us to make use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the unaudited consolidated financial statements and the reported revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, net realizable value of inventories, environmental remediation liabilities, environmental and litigation contingencies, the cost of customer incentives, useful lives of property and identifiable intangible assets, the assumptions used in the evaluation of potential impairments of property, investments, identifiable intangible assets and goodwill, income tax and valuation reserves, allowances for doubtful accounts receivable, the measurement of the fair values of investments for which markets are not active, assumptions used in the determination of the funded status and annual expense of defined benefit pension and other postretirement benefit plans and the assumptions used in the valuation of stock-based compensation awards granted to employees.


6

Table of Contents
CF INDUSTRIES HOLDINGS, INC.



2.   New Accounting Standards
Recently Adopted Pronouncements
On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which supersedes the lease accounting requirements in ASC Topic 840, Leases. This ASU requires lessees to recognize the rights and obligations resulting from virtually all leases (other than leases that meet the definition of a short-term lease) on their balance sheets as right-of-use assets with corresponding lease liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, are required to provide greater insight into the extent of income and expense recognized and expected to be recognized from existing contracts. We elected the optional transition method provided under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides the option to adopt ASU No. 2016-02 as of the adoption date with a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The cumulative effect adjustment we recognized in the opening balance of retained earnings as of January 1, 2019 was not material. In addition, we elected the package of practical expedients permitted under the transition guidance within ASU No. 2016-02, which allows us to carry forward the historical lease determination, lease classification, and assessment of initial direct costs. See Note 13—Leases for additional information.
On January 1, 2019, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships in order to better portray the economic results of an entity’s risk management activities in its financial statements. The adoption of this ASU had no effect on our consolidated financial statements.
Recently Issued Pronouncements
In August 2018, the Financial Accounting Standards Board issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU does not affect the accounting for the service element of a hosting arrangement that is a service contract. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2019 and can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. We plan to adopt this ASU prospectively. We do not expect that our adoption of this ASU on January 1, 2020 will have a material impact on our consolidated financial statements. However, this guidance could have an effect on future financial results if significant new software involving a cloud computing agreement is implemented. In this case, a certain portion of the implementation costs could be deferred and expensed over the term of the cloud computing arrangement.

7

Table of Contents
CF INDUSTRIES HOLDINGS, INC.



3.   Revenue Recognition
We track our revenue by product and by geography. See Note 17—Segment Disclosures for our revenue by reportable segment, which are ammonia, granular urea, UAN, AN and Other. The following table summarizes our revenue by product and by geography (based on destination of our shipment) for the three and nine months ended September 30, 2019 and 2018:
 
Ammonia
 
Granular
Urea
 
UAN
 
AN
 
Other
 
Total
 
(in millions)
Three months ended September 30, 2019
 

 
 

 
 

 
 
 
 

 
 

North America
$
152

 
$
289

 
$
278

 
$
41

 
$
63

 
$
823

Europe and other
35

 
38

 
31

 
95

 
16

 
215

Total revenue
$
187

 
$
327

 
$
309

 
$
136

 
$
79

 
$
1,038

Three months ended September 30, 2018
 
 
 
 
 
 
 
 
 

 
 

North America
$
148

 
$
292

 
$
214

 
$
45

 
$
61

 
$
760

Europe and other
44

 
61

 
56

 
94

 
25

 
280

Total revenue
$
192

 
$
353

 
$
270

 
$
139

 
$
86

 
$
1,040



 
Ammonia
 
Granular
Urea
 
UAN
 
AN
 
Other
 
Total
 
(in millions)
Nine months ended September 30, 2019