Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 29, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-32597 | ||
Entity Registrant Name | CF INDUSTRIES HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-2697511 | ||
Entity Address, Address Line One | 4 Parkway North, Suite 400 | ||
Entity Address, Postal Zip Code | 60015 | ||
Entity Address, City or Town | Deerfield, | ||
Entity Address, State or Province | IL | ||
City Area Code | 847 | ||
Local Phone Number | 405-2400 | ||
Title of 12(b) Security | common stock, par value $0.01 per share | ||
Trading Symbol | CF | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,984,082,631 | ||
Entity Common Stock, Shares Outstanding | 214,159,740 | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement for its 2021 annual meeting of stockholders (Proxy Statement) are incorporated by reference into Part III of this Annual Report on Form 10-K. The Proxy Statement will be filed with the Securities and Exchange Commission, pursuant to Regulation 14A, not later than 120 days after the end of the 2020 fiscal year, or, if the registrant does not file the Proxy Statement within such 120-day period, the registrant will amend this Annual Report on Form 10-K to include the information required under Part III hereof not later than the end of such 120-day period. | ||
Entity Central Index Key | 0001324404 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 4,124 | $ 4,590 | $ 4,429 |
Cost of sales | 3,323 | 3,416 | 3,512 |
Gross margin | 801 | 1,174 | 917 |
Selling, general and administrative expenses | 206 | 239 | 214 |
Other operating—net | (17) | (73) | (27) |
Total other operating costs and expenses | 189 | 166 | 187 |
Equity in earnings (loss) of operating affiliate | 11 | (5) | 36 |
Operating earnings | 623 | 1,003 | 766 |
Interest expense | 179 | 237 | 241 |
Interest income | (18) | (20) | (13) |
Loss on debt extinguishment | 0 | (21) | 0 |
Other non-operating—net | (1) | (7) | (9) |
Earnings before income taxes | 463 | 772 | 547 |
Income tax provision | 31 | 126 | 119 |
Net earnings | 432 | 646 | 428 |
Less: Net earnings attributable to noncontrolling interests | 115 | 153 | 138 |
Net earnings attributable to common stockholders | $ 317 | $ 493 | $ 290 |
Net earnings per share attributable to common stockholders: | |||
Basic | $ 1.48 | $ 2.24 | $ 1.25 |
Diluted | $ 1.47 | $ 2.23 | $ 1.24 |
Weighted-average common shares outstanding: | |||
Basic | 214.9 | 220.2 | 232.6 |
Diluted | 215.2 | 221.6 | 233.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 432 | $ 646 | $ 428 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment—net of taxes | 44 | 62 | (105) |
Derivatives—net of taxes | (1) | 0 | 0 |
Defined benefit plans—net of taxes | 3 | (57) | 8 |
Total other comprehensive income (loss) | 46 | 5 | (97) |
Comprehensive income | 478 | 651 | 331 |
Less: Comprehensive income attributable to noncontrolling interests | 115 | 153 | 138 |
Comprehensive income attributable to common stockholders | $ 363 | $ 498 | $ 193 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 683 | $ 287 |
Accounts receivable—net | 265 | 242 |
Inventories | 287 | 351 |
Prepaid income taxes | 97 | 71 |
Other current assets | 35 | 23 |
Total current assets | 1,367 | 974 |
Property, plant and equipment—net | 7,632 | 8,170 |
Investment in affiliate | 80 | 88 |
Goodwill | 2,374 | 2,365 |
Operating lease right-of-use assets | 259 | 280 |
Other assets | 311 | 295 |
Total assets | 12,023 | 12,172 |
Current liabilities: | ||
Accounts payable and accrued expenses | 424 | 437 |
Income taxes payable | 0 | 1 |
Customer advances | 130 | 119 |
Current operating lease liabilities | 88 | 90 |
Current maturities of long-term debt | 249 | 0 |
Other current liabilities | 15 | 18 |
Total current liabilities | 906 | 665 |
Long-term debt | 3,712 | 3,957 |
Deferred income taxes | 1,184 | 1,246 |
Operating lease liabilities | 174 | 193 |
Other liabilities | 444 | 474 |
Stockholders’ equity: | ||
Preferred stock—$0.01 par value, 50,000,000 shares authorized | 0 | 0 |
Common stock—$0.01 par value, 500,000,000 shares authorized, 2020—214,057,701 shares issued and 2019—216,023,826 shares issued | 2 | 2 |
Paid-in capital | 1,317 | 1,303 |
Retained earnings | 1,927 | 1,958 |
Treasury stock—at cost, 2020—102,843 shares and 2019—0 shares | (4) | 0 |
Accumulated other comprehensive loss | (320) | (366) |
Total stockholders’ equity | 2,922 | 2,897 |
Noncontrolling interest | 2,681 | 2,740 |
Total equity | 5,603 | 5,637 |
Total liabilities and equity | $ 12,023 | $ 12,172 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 214,057,701 | 216,023,826 |
Treasury Stock, Shares | 102,843 | 0 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total Stockholders’ Equity | Total Stockholders’ EquityCumulative Effect, Period of Adoption, Adjustment | $0.01 Par Value Common Stock | $0.01 Par Value Common StockCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Treasury StockCumulative Effect, Period of Adoption, Adjustment | Paid-In Capital | Paid-In CapitalCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interests | Noncontrolling InterestsCumulative Effect, Period of Adoption, Adjustment |
Beginning balance at Dec. 31, 2017 | $ 6,684 | $ 3,579 | $ 2 | $ 0 | $ 1,397 | $ 2,443 | $ (263) | $ 3,105 | |||||||
Beginning balance (Accounting Standards Update 2016-01) at Dec. 31, 2017 | $ 0 | $ 0 | $ 0 | $ 0 | 1 | $ 1 | $ (1) | $ 0 | |||||||
Beginning balance (Accounting Standards Update 2014-09) at Dec. 31, 2017 | (1) | 0 | 0 | 0 | (1) | 0 | 0 | ||||||||
Beginning balance (Accounting Standards Update 2018-12) at Dec. 31, 2017 | $ 0 | $ 0 | $ 0 | $ 0 | 10 | $ 10 | $ (10) | $ 0 | |||||||
Increase (decrease) in equity | |||||||||||||||
Net earnings | 428 | 290 | 0 | 0 | 0 | 290 | 0 | 138 | |||||||
Other comprehensive income | (97) | (97) | 0 | 0 | 0 | 0 | (97) | 0 | |||||||
Issuance of $0.01 par value common stock under employee stock plans | 8 | 8 | 0 | (4) | 12 | 0 | 0 | 0 | |||||||
Purchases of treasury stock | (500) | (500) | 0 | (500) | 0 | 0 | 0 | 0 | |||||||
Stock-based compensation expense | 21 | 21 | 0 | 0 | 21 | 0 | 0 | 0 | |||||||
Cash dividends ($1.20 per share) | (280) | (280) | 0 | 0 | 0 | (280) | 0 | 0 | |||||||
Acquisition of noncontrolling interests in TNCLP | (393) | (62) | 0 | 0 | (62) | 0 | 0 | (331) | |||||||
Distributions declared to noncontrolling interest | (139) | 0 | 0 | 0 | 0 | 0 | 0 | (139) | |||||||
Ending balance at Dec. 31, 2018 | 5,731 | 2,958 | 2 | (504) | 1,368 | 2,463 | (371) | 2,773 | |||||||
Increase (decrease) in equity | |||||||||||||||
Net earnings | 646 | 493 | 0 | 0 | 0 | 493 | 0 | 153 | |||||||
Other comprehensive income | 5 | 5 | 0 | 0 | 0 | 0 | 5 | 0 | |||||||
Issuance of $0.01 par value common stock under employee stock plans | 19 | 19 | 0 | 2 | 17 | 0 | 0 | 0 | |||||||
Purchases of treasury stock | (337) | (337) | 0 | (337) | 0 | 0 | 0 | 0 | |||||||
Retirement of treasury stock | 0 | 0 | 0 | 843 | (110) | (733) | 0 | 0 | |||||||
Acquisition of treasury stock under employee stock plans | (4) | (4) | 0 | (4) | 0 | 0 | 0 | 0 | |||||||
Stock-based compensation expense | 28 | 28 | 0 | 0 | 28 | 0 | 0 | 0 | |||||||
Cash dividends ($1.20 per share) | (265) | (265) | 0 | 0 | 0 | (265) | 0 | 0 | |||||||
Distributions declared to noncontrolling interest | (186) | 0 | 0 | 0 | 0 | 0 | 0 | (186) | |||||||
Ending balance at Dec. 31, 2019 | 5,637 | 2,897 | 2 | 0 | 1,303 | 1,958 | (366) | 2,740 | |||||||
Increase (decrease) in equity | |||||||||||||||
Net earnings | 432 | 317 | 0 | 0 | 0 | 317 | 0 | 115 | |||||||
Other comprehensive income | 46 | 46 | 0 | 0 | 0 | 0 | 46 | 0 | |||||||
Issuance of $0.01 par value common stock under employee stock plans | 8 | 8 | 0 | 2 | 6 | 0 | 0 | 0 | |||||||
Purchases of treasury stock | (100) | (100) | 0 | (100) | 0 | 0 | 0 | 0 | |||||||
Retirement of treasury stock | 0 | 0 | 0 | 107 | (17) | (90) | 0 | 0 | |||||||
Acquisition of treasury stock under employee stock plans | (13) | (13) | 0 | (13) | 0 | 0 | 0 | 0 | |||||||
Stock-based compensation expense | 25 | 25 | 0 | 0 | 25 | 0 | 0 | 0 | |||||||
Cash dividends ($1.20 per share) | (258) | (258) | 0 | 0 | 0 | (258) | 0 | 0 | |||||||
Distributions declared to noncontrolling interest | (174) | 0 | 0 | 0 | 0 | 0 | 0 | (174) | |||||||
Ending balance at Dec. 31, 2020 | $ 5,603 | $ 2,922 | $ 2 | $ (4) | $ 1,317 | $ 1,927 | $ (320) | $ 2,681 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.20 | $ 1.20 | $ 1.20 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | |||
Net earnings | $ 432 | $ 646 | $ 428 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 892 | 875 | 888 |
Deferred income taxes | (74) | 149 | 78 |
Stock-based compensation expense | 25 | 28 | 22 |
Unrealized net (gain) loss on natural gas derivatives | (6) | 14 | (13) |
Loss on embedded derivative | 3 | 4 | 1 |
Loss on debt extinguishment | 0 | (21) | 0 |
Loss (gain) on disposal of property, plant and equipment | 15 | (40) | 6 |
Undistributed (earnings) losses of affiliate—net of taxes | (1) | 2 | (3) |
Changes in: | |||
Accounts receivable—net | (19) | (6) | 68 |
Inventories | 27 | (26) | (52) |
Accrued and prepaid income taxes | 8 | 22 | 8 |
Accounts payable and accrued expenses | (15) | (72) | 44 |
Customer advances | 11 | (30) | 59 |
Other—net | (67) | (82) | (37) |
Net cash provided by operating activities | 1,231 | 1,505 | 1,497 |
Investing Activities: | |||
Additions to property, plant and equipment | (309) | (404) | (422) |
Proceeds from sale of property, plant and equipment | 2 | 70 | 26 |
Distributions received from unconsolidated affiliate | 6 | 0 | 10 |
Insurance proceeds for property, plant and equipment | 2 | 15 | 10 |
Other—net | 0 | 0 | 1 |
Net cash used in investing activities | (299) | (319) | (375) |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations [Abstract] | |||
Payments of long-term borrowings | 0 | (769) | 0 |
Proceeds from short-term borrowings | 500 | 0 | 0 |
Repayments of short-term borrowings | (500) | 0 | 0 |
Payment to CHS related to credit provision | (5) | (5) | (5) |
Financing fees | 0 | (3) | (1) |
Purchases of treasury stock | (100) | (370) | (467) |
Dividends paid on common stock | (258) | (265) | (280) |
Acquisition of noncontrolling interests in TNCLP | 0 | 0 | (388) |
Distributions to noncontrolling interests | (174) | (186) | (139) |
Proceeds from issuances of common stock under employee stock plans | 5 | 19 | 12 |
Shares withheld for taxes | (10) | (4) | (4) |
Net cash used in financing activities | (542) | (1,583) | (1,270) |
Effect of exchange rate changes on cash and cash equivalents | 6 | 2 | (5) |
Increase (decrease) in cash and cash equivalents | 396 | (395) | (153) |
Cash and cash equivalents | $ 683 | $ 287 | $ 682 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation We are a leading global manufacturer of hydrogen and nitrogen products for clean energy, fertilizer, emissions abatement, and other industrial applications. We operate nitrogen manufacturing complexes in the United States, Canada and the United Kingdom, which are among the most cost-advantaged, efficient and flexible in the world, and an extensive storage, transportation and distribution network in North America. Our 3,000 employees focus on safe and reliable operations, environmental stewardship and disciplined capital and corporate management, driving our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. Our principal customers are cooperatives, independent fertilizer distributors, traders, wholesalers and industrial users. Our core product is anhydrous ammonia (ammonia), which contains 82% nitrogen and 18% hydrogen. Our nitrogen products that are upgraded from ammonia are granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Our other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to our industrial customers, and compound fertilizer products (NPKs), which are solid granular fertilizer products for which the nutrient content is a combination of nitrogen, phosphorus and potassium. 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. Our principal assets as of December 31, 2020 include: • five U.S. nitrogen manufacturing facilities located in Donaldsonville, Louisiana; Port Neal, Iowa; Yazoo City, Mississippi; Verdigris, Oklahoma; and Woodward, Oklahoma. These facilities are wholly owned directly or indirectly by CF Industries Nitrogen, LLC (CFN), of which we own approximately 89% and CHS Inc. (CHS) owns the remainder. See Note 17—Noncontrolling Interests for additional information on our strategic venture with CHS; • two Canadian nitrogen manufacturing facilities, located in Medicine Hat, Alberta and Courtright, Ontario; • two United Kingdom nitrogen manufacturing facilities, located in Billingham and Ince; • an extensive system of terminals and associated transportation equipment located primarily in the Midwestern United States; and • a 50% interest in Point Lisas Nitrogen Limited (PLNL), an ammonia production joint venture located in the Republic of Trinidad and Tobago that we account for under the equity method. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Consolidation and Noncontrolling Interests The consolidated financial statements of CF Holdings include the accounts of CF Industries and all majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. In 2018, we announced that Terra Nitrogen GP Inc. (TNGP), the sole general partner of Terra Nitrogen Company, L.P. (TNCLP) and an indirect wholly owned subsidiary of CF Holdings, elected to exercise its right to purchase all of the 4,612,562 publicly traded common units of TNCLP (the TNCLP Public Units). On April 2, 2018, TNGP completed its purchase of the TNCLP Public Units (the Purchase) for an aggregate cash purchase price of $388 million. Upon completion of the Purchase, we owned, through our subsidiaries, 100% of the general and limited partnership interests of TNCLP. Prior to the purchase of the TNCLP Public Units, we owned approximately 75.3% of TNCLP through general and limited partnership interests and outside investors owned the remaining approximately 24.7% of the limited partnership, and we consolidated TNCLP into our financial statements. The outside investors’ limited partnership interests in the partnership were included in noncontrolling interests in our consolidated financial statements prior to our purchase of the TNCLP Public Units. We own approximately 89% of the membership interests in CFN and consolidate CFN in our financial statements. CHS’ minority equity interest in CFN is included in noncontrolling interests in our consolidated financial statements. See Note 17—Noncontrolling Interests for additional information. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of 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 evaluation of potential impairments of property, investments, identifiable intangible assets and goodwill, income taxes, allowances for doubtful accounts receivable, the determination of the benefit obligation and annual expense of defined benefit pension and other postretirement plans and the valuation of stock-based compensation awards granted to employees. Revenue Recognition We follow a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligation(s), and (5) recognition of revenue when (or as) each performance obligation is satisfied. Control of our products transfers to our customers when the customer is able to direct the use of, and obtain substantially all of the benefits from, our products, which occurs at the later of when title or risk of loss transfers to the customer. Control generally transfers to the customer at a point in time upon loading of our product onto transportation equipment or delivery to a customer destination. Revenue from forward sales programs is recognized on the same basis as other sales regardless of when the customer advances are received. In situations where we have agreed to arrange delivery of the product to the customer’s intended destination and control of the product transfers upon loading of our product, we have elected to not identify delivery of the product as a performance obligation. We account for freight income associated with the delivery of these products as freight revenue, since this activity fulfills our obligation to transfer the product to the customer. Shipping and handling costs incurred by us are included in cost of sales. We offer cash incentives to certain customers based on the volume of their purchases over a certain period. Customer incentives are reported as a reduction in net sales. 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. Investments Short-term investments and noncurrent investments are accounted for primarily as available-for-sale securities reported at fair value. Changes in the fair value of available-for-sale debt securities are recognized in other comprehensive income. Changes in the fair value of available-for-sale equity securities are recognized through earnings. The carrying values of short-term investments approximate fair values because of the short maturities and the highly liquid nature of these investments. Inventories Inventories are reported at the lower of cost and net realizable value with cost determined on a first-in, first-out and average cost basis. Inventory includes the cost of materials, production labor and production overhead. Inventory at warehouses and terminals also includes distribution costs to move inventory to the distribution facilities. Net realizable value is reviewed at least quarterly. Fixed production costs related to idle capacity are not included in the cost of inventory but are charged directly to cost of sales in the period incurred. Investment in Unconsolidated Affiliate The equity method of accounting is used for our investment in an affiliate that we do not consolidate, but over which we have the ability to exercise significant influence. Our equity method investment for which the results are included in operating earnings consists of our 50% ownership interest in PLNL, which operates an ammonia production facility in the Republic of Trinidad and Tobago. Our share of the net earnings from this investment is reported as an element of earnings from operations because PLNL’s operations provide additional production and are integrated with our supply chain and sales activities in the ammonia segment. See Note 8—Equity Method Investment for additional information. Profits resulting from sales or purchases with equity method investees are eliminated until realized by the investee or investor, respectively. Investments in affiliates are reviewed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. If circumstances indicate that the fair value of an investment in an affiliate is less than its carrying value, and the reduction in value is other than temporary, the reduction in value would be recognized immediately in earnings. Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method and are recorded over the estimated useful life of the property, plant and equipment. Useful lives are as follows: Years Mobile and office equipment 3 to 10 Production facilities and related assets 2 to 30 Land improvements 10 to 30 Buildings 10 to 40 We periodically review the useful lives assigned to our property, plant and equipment and we 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 facilities during a full plant shutdown 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 in property, plant and equipment 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 five 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. See Note 6—Property, Plant and Equipment—Net for additional information. 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 would be recognized. The impairment loss is measured as the amount by which the carrying value exceeds the fair value of the asset. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to the assets acquired and liabilities assumed. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if certain impairment conditions arise. We perform our annual goodwill impairment review in the fourth quarter of each year at the reporting unit level. Our evaluation can begin with a qualitative assessment of the factors that could impact the significant inputs used to estimate fair value. If after performing the qualitative assessment, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then no further analysis is necessary. However, if the results of the qualitative test are unclear, we perform a quantitative test, which involves comparing the fair value of a reporting unit with its carrying amount, including goodwill. We use an income-based valuation method, determining the present value of future cash flows, to estimate the fair value of a reporting unit. If the fair value of a reporting unit exceeds its positive carrying amount, goodwill of the reporting unit is considered not impaired, and no further analysis is necessary. If the fair value of the reporting unit is less than its carrying amount, goodwill impairment would be recognized equal to the amount of the carrying value in excess of the reporting unit’s fair value, limited to the total amount of goodwill allocated to the reporting unit. Our intangible assets are presented in other assets on our consolidated balance sheets. See Note 7—Goodwill and Other Intangible Assets for additional information regarding our goodwill and other intangible assets. Leases Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate the present value represents our secured incremental borrowing rate and is calculated based on the treasury yield curve commensurate with the term of each lease, and a spread representative of our secured borrowing costs. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases may be classified as either operating leases or finance leases. We have made an accounting policy election to not include leases with an initial term of 12 months or less on the balance sheet. For finance leases, if any, ROU assets are amortized over the lease term on a straight-line basis and interest expense is recognized using the effective interest method and based on the lease liability at period end. For operating 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. For our rail car leases, barge tow charters, and terminal and warehouse storage agreements, we have made an accounting policy election to not separate lease and non-lease components, such as operating costs and maintenance, due to sufficient data not being available. As a result, the non-lease components are included in the ROU assets and lease liabilities on our consolidated balance sheet. See Note 24—Leases for additional information. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are projected to be recovered or settled. Realization of deferred tax assets is dependent on our ability to generate sufficient taxable income of an appropriate character in future periods. A valuation allowance is established if it is determined to be more likely than not that a deferred tax asset will not be realized. Significant judgment is applied in evaluating the need for and magnitude of appropriate valuation allowances against deferred tax assets. We record our tax expense for Global Intangible Low-Taxed Income (GILTI) as an expense in the period in which incurred and as such do not record a deferred tax liability for taxes that may be due in future periods. Interest and penalties related to unrecognized tax benefits are reported as interest expense and income tax expense, respectively. See Note 10—Income Taxes for additional information. Customer Advances Customer advances represent cash received from customers following acceptance of orders under our forward sales programs. Under such advances, the customer prepays a portion of the value of the sales contract prior to obtaining control of the product, thereby reducing or eliminating accounts receivable from customers. Revenue is recognized when the customer obtains control of the product. Derivative Financial Instruments Natural gas is the principal raw material used to produce nitrogen-based products. We manage the risk of changes in natural gas prices primarily through the use of derivative financial instruments. The derivative instruments that we may use are primarily natural gas fixed price swaps, basis swaps and options traded in the over-the-counter (OTC) markets. The derivatives reference primarily a NYMEX futures price index, which represent the basis for fair value at any given time. These 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. Derivative financial instruments are accounted for at fair value and recognized as current or noncurrent assets and liabilities on our consolidated balance sheets. We use natural gas derivatives as an economic hedge of natural gas price risk, but without the application of hedge accounting. As a result, changes in fair value of these contracts are recognized in earnings. The fair values of derivative instruments and any related cash collateral are reported on a gross basis rather than on a net basis. Cash flows related to natural gas derivatives are reported as operating activities. See Note 15—Derivative Financial Instruments for additional information. Debt Issuance Costs Costs associated with the issuance of debt are recorded on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Costs associated with entering into revolving credit facilities are recorded as an asset in noncurrent assets. All debt issuance costs are amortized over the term of the related debt using the effective interest rate method. Debt issuance discounts are netted against the related debt and are amortized over the term of the debt using the effective interest method. See Note 12—Financing Agreements for additional information. 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 an obligation has been incurred and the costs can be reasonably estimated. Environmental liabilities are not discounted. Emission Credits Emission credits may be generated by or granted to the Company through emissions trading systems or other regulatory programs. From time to time, we may also purchase emission credits. We have elected to account for emission credits using the intangible asset model. Under this model, emission credits that are purchased are measured at their cost basis and tested for impairment annually. We do not recognize any internally generated emission credits under the intangible asset model until a monetary transaction occurs, such as a sale of the emission credits. If a facility exceeds regulatory emissions allowance levels and offsetting credits are not held by us, our obligation is recognized as an operating expense and a liability at the fair value of the emissions allowance deficit. Stock-based Compensation We grant stock-based compensation awards under our equity and incentive plans. The awards that have been granted to date are nonqualified stock options, restricted stock awards, restricted stock units and performance restricted stock units. The cost of employee services received in exchange for the awards is measured based on the fair value of the award on the grant date and is recognized as expense on a straight-line basis over the period during which the employee is required to provide the services. We have elected to recognize equity award forfeitures as they occur in determining the compensation cost to be recognized in each period . See Note 19—Stock-based Compensation for additional information. Treasury Stock We periodically retire treasury shares acquired through repurchases of our common stock and return those shares to the status of authorized but unissued. We account for treasury stock transactions under the cost method. For each reacquisition of common stock, the number of shares and the acquisition price for those shares is added to the treasury stock count and total value. When treasury shares are retired, we allocate the excess of the repurchase price over the par value of shares acquired to both retained earnings and paid-in capital. The portion allocated to paid-in capital is determined by applying the average paid-in capital per share, and the remaining portion is recorded to retained earnings. Litigation From time to time, we are subject to ordinary, routine legal proceedings related to the usual conduct of our business. We may also be involved in proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of our various plants 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. Legal fees are recognized as incurred and are not included in accruals for contingencies. 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, 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. Foreign Currency Translation We translate the financial statements of our foreign subsidiaries with non-U.S. dollar functional currencies using period-end exchange rates for assets and liabilities and weighted-average exchange rates for each period for revenues and expenses. The resulting translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) within stockholders’ equity. Foreign currency-denominated assets and liabilities are remeasured into U.S. dollars at exchange rates existing at the respective balance sheet dates. Gains and losses resulting from these foreign currency transactions are included in other operating—net on our consolidated statements of operations. Gains and losses resulting from intercompany foreign currency transactions that are of a long-term investment nature, if any, are reported in other comprehensive income. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Adopted Pronouncements On January 1, 2020, we adopted Accounting Standards Update (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. We adopted this ASU prospectively. The adoption of this ASU did not have a material impact on our consolidated financial statements; however, it 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 would be deferred and expensed over the term of the cloud computing arrangement. On January 1, 2019, we adopted 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 24—Leases for additional information. Recently Issued Pronouncement |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 4. Revenue Recognition Our performance obligations under a customer contract correspond to each shipment of product that we make to our customer under the contract. As a result, each contract may have more than one performance obligation based on the number of products ordered, the quantity of product to be shipped and the mode of shipment requested by the customer. When we enter into a contract with a customer, we are obligated to provide the product in that contract during a mutually agreed upon time period. Depending on the terms of the contract, either we or the customer arranges delivery of the product to the customer’s intended destination. When we arrange delivery of the product and control of the product transfers upon loading, we recognize freight revenue, which was not material for 2020, 2019 or 2018. Certain of our contracts require us to supply products on a continuous basis to the customer. We recognize revenue on these contracts based on the quantity of products transferred to the customer during the period. For 2020, 2019 and 2018, the total amount of revenue for these contracts was $44 million, $55 million and $85 million, respectively. From time to time, we will enter the marketplace to purchase product in order to satisfy the obligations of our customer contracts. When we purchase product for this purpose, we are the principal in the transaction and recognize revenue on a gross basis. As discussed in Note 8—Equity Method Investment, we have transactions in the normal course of business with PLNL, reflecting our obligation to purchase 50% of the ammonia produced by PLNL at current market prices. Other than products purchased from PLNL, products purchased in the marketplace in order to satisfy the obligations of our customers were not material during 2020, 2019 or 2018. Transaction Price We agree with our customers on the selling price of each transaction. This transaction price is generally based on the product, market conditions, including supply and demand balances, freight arrangements including where control transfers, and customer incentives. In our contracts with customers, we allocate the entire transaction price to the sale of product to the customer, which is the basis for the determination of the relative standalone selling price allocated to each performance obligation. Any sales tax, value added tax, and other tax we collect concurrently with our revenue-producing activities are excluded from revenue. Returns of our product by our customers are permitted only when the product is not to specification. Returns were not material during 2020, 2019 or 2018. We offer cash incentives to certain customers that do not provide an option to the customer for additional product. Accrual of these incentives involves the use of estimates, including how much product the customer will purchase and whether the customer will achieve a certain level of purchases within the incentive period. The balances of customer incentives accrued at December 31, 2020 and 2019 were not material. Revenue Disaggregation We track our revenue by product and by geography. See Note 21—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 2020, 2019 and 2018: Ammonia Granular UAN AN Other Total (in millions) Year ended December 31, 2020 North America $ 874 $ 1,183 $ 998 $ 197 $ 235 $ 3,487 Europe and other 146 65 65 258 103 637 Total revenue $ 1,020 $ 1,248 $ 1,063 $ 455 $ 338 $ 4,124 Year ended December 31, 2019 North America $ 948 $ 1,269 $ 1,176 $ 200 $ 256 $ 3,849 Europe and other 165 73 94 306 103 741 Total revenue $ 1,113 $ 1,342 $ 1,270 $ 506 $ 359 $ 4,590 Year ended December 31, 2018 North America $ 883 $ 1,243 $ 1,047 $ 186 $ 261 $ 3,620 Europe and other 145 79 187 274 124 809 Total revenue $ 1,028 $ 1,322 $ 1,234 $ 460 $ 385 $ 4,429 Accounts Receivable and Customer Advances Our customers purchase our products through sales on credit or forward sales. Products sold to our customers on credit are recorded as accounts receivable when the customer obtains control of the product. Customers that purchase our products on credit are required to pay in accordance with our customary payment terms, which are generally less than 30 days. For 2020, 2019 and 2018, the amount of customer bad debt expense recognized was immaterial. For forward sales, the customer prepays a portion of the value of the sales contract prior to obtaining control of the product. These prepayments, when received, are recorded as customer advances and are recognized as revenue when the customer obtains control of the product. Forward sales are customarily offered for periods of less than one year in advance of when the customer obtains control of the product. As of December 31, 2020 and 2019, we had $130 million and $119 million, respectively, in customer advances on our consolidated balance sheets. The increase in the balance of customer advances was due primarily to an increase in forward contracts amidst an increasing price environment. During 2020, all of our customer advances that were recorded as of December 31, 2019 were recognized as revenue. We have certain customer contracts with performance obligations where if the customer does not take the required amount of product specified in the contract, then the customer is required to make a payment to us, which may vary based upon the terms and conditions of the applicable contract. As of December 31, 2020, excluding contracts with original durations of less than one year, and based on the minimum product tonnage to be sold and current market price estimates, our remaining performance obligations under these contracts are approximately $867 million. We expect to recognize approximately 31% of these performance obligations as revenue in 2021, approximately 42% as revenue during 2022 and 2023, approximately 23% as revenue during 2024 and 2025, and the remainder thereafter. If these customers do not fulfill their contractual obligations under such contracts, the legally enforceable minimum amount that they would pay to us under these contracts is approximately $212 million as of December 31, 2020. Other than the performance obligations described above, any performance obligations with our customers that were unfulfilled or partially filled at December 31, 2020 will be satisfied in 2021. All of our contracts require that the period between the payment for goods and the transfer of those goods to the customer occur within normal contractual terms that do not exceed one year; therefore, we have not adjusted the transaction price of any of our contracts to recognize a significant financing component. We have also expensed any incremental costs associated with obtaining a contract that has a duration of less than one year, and there were no costs capitalized during 2020, 2019 or 2018. |
Net Earnings Per Share
Net Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net Earnings Per Share Net earnings per share were computed as follows: Year ended December 31, 2020 2019 2018 (in millions, except per share amounts) Net earnings attributable to common stockholders $ 317 $ 493 $ 290 Basic earnings per common share: Weighted-average common shares outstanding 214.9 220.2 232.6 Net earnings attributable to common stockholders $ 1.48 $ 2.24 $ 1.25 Diluted earnings per common share: Weighted-average common shares outstanding 214.9 220.2 232.6 Dilutive common shares—stock-based awards 0.3 1.4 1.2 Diluted weighted-average shares outstanding 215.2 221.6 233.8 Net earnings attributable to common stockholders $ 1.47 $ 2.23 $ 1.24 Dilutive earnings per share is calculated using weighted-average common shares outstanding, including the dilutive effect of stock-based awards as determined under the treasury stock method. In the computation of diluted earnings per common share, potentially dilutive stock-based awards are excluded if the effect of their inclusion is anti-dilutive. Shares for anti-dilutive stock-based awards not included in the computation of diluted earnings per common share were 3.3 million, 1.4 million and 1.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Property, Plant and Equipment-N
Property, Plant and Equipment-Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment-Net | Property, Plant and Equipment—Net Property, plant and equipment—net consists of the following: December 31, 2020 2019 (in millions) Land $ 68 $ 71 Machinery and equipment 12,539 12,338 Buildings and improvements 895 890 Construction in progress 275 236 Property, plant and equipment (1) 13,777 13,535 Less: Accumulated depreciation and amortization 6,145 5,365 Property, plant and equipment—net $ 7,632 $ 8,170 _______________________________________________________________________________ (1) As of December 31, 2020 and 2019, we had property, plant and equipment that was accrued but unpaid of approximately $43 million and $42 million, respectively. Depreciation and amortization related to property, plant and equipment was $876 million, $855 million and $865 million in 2020, 2019 and 2018, respectively. In 2019, we sold our Pine Bend dry bulk storage and logistics facility in Minnesota, received proceeds of $55 million and recognized a pre-tax gain of $45 million. The gain is reflected in other operating—net in our consolidated statement of operations for the year ended December 31, 2019. Plant turnarounds —Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facilities during a full plant shutdown are referred to as plant turnarounds. The expenditures related to turnarounds are capitalized in property, plant and equipment when incurred. The following is a summary of capitalized plant turnaround costs: Year ended December 31, 2020 2019 2018 (in millions) Net capitalized turnaround costs at beginning of the year $ 246 $ 252 $ 208 Additions 84 102 156 Depreciation (104) (112) (111) Effect of exchange rate changes — 4 (1) Net capitalized turnaround costs at end of the year $ 226 $ 246 $ 252 Scheduled replacements and overhauls of plant machinery and equipment include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors, heat exchangers and the replacement of catalysts when a full plant shutdown occurs. Scheduled inspections are also conducted during full plant shutdowns, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table shows the carrying amount of goodwill by reportable segment as of December 31, 2020 and 2019: Ammonia Granular Urea UAN AN Other Total (in millions) Balance as of December 31, 2019 $ 587 $ 828 $ 576 $ 302 $ 72 $ 2,365 Effect of exchange rate changes — — — 8 1 9 Balance as of December 31, 2020 $ 587 $ 828 $ 576 $ 310 $ 73 $ 2,374 All of our identifiable intangible assets have definite lives and are presented in other assets on our consolidated balance sheets at gross carrying amount, net of accumulated amortization, as follows: December 31, 2020 December 31, 2019 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 133 $ (52) $ 81 $ 131 $ (45) $ 86 Trade names 32 (9) 23 31 (7) 24 Total intangible assets $ 165 $ (61) $ 104 $ 162 $ (52) $ 110 Our intangible assets are being amortized over a weighted-average life of approximately 20 years. Amortization expense of our identifiable intangibles was $8 million, $8 million and $7 million for the years ended December 31, 2020, 2019 and 2018, respectively. The gross carrying amount and accumulated amortization of our intangible assets are also impacted by the effect of exchange rate changes. Total estimated amortization expense for each of the five succeeding fiscal years is as follows: Estimated (in millions) 2021 $ 8 2022 8 2023 8 2024 8 2025 8 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investment We have a 50% ownership interest in PLNL, which operates an ammonia production facility in the Republic of Trinidad and Tobago. We include our share of the net earnings from this equity method investment as an element of earnings from operations because PLNL provides additional production to our operations and is integrated with our other supply chain and sales activities in the ammonia segment. As of December 31, 2020, the total carrying value of our equity method investment in PLNL was $80 million, $42 million more than our share of PLNL’s book value. The excess is attributable to the purchase accounting impact of our acquisition of the investment in PLNL and reflects the revaluation of property, plant and equipment. The increased basis for property, plant and equipment is being amortized over a remaining period of approximately 12 years. Our equity in earnings of PLNL is different from our ownership interest in income reported by PLNL due to amortization of this basis difference. We have transactions in the normal course of business with PLNL reflecting our obligation to purchase 50% of the ammonia produced by PLNL at current market prices. Our ammonia purchases from PLNL totaled $57 million, $69 million and $86 million in 2020, 2019 and 2018, respectively. The Trinidadian tax authority (the Board of Inland Revenue) issued a proposed tax assessment against PLNL with respect to tax years 2011 and 2012 in the amount of approximately $12 million. The proposed assessment asserted that PLNL should have withheld tax at a higher rate on dividends paid to its Trinidadian owners. The Board of Inland Revenue also would have assessed statutory interest and penalties on the amount of tax owed when a final assessment was issued for the tax years 2011 and 2012. As we own a 50% interest in PLNL, our effective share of any assessment that is determined to be a liability of PLNL would be 50%, which would be reflected as a reduction in our equity in earnings of PLNL. During the third quarter of 2019, the Trinidadian government offered a tax amnesty period that provided taxpayers the opportunity to pay any prior year tax obligations and avoid accumulated interest or penalties. During the tax amnesty period, PLNL evaluated the proposed assessment, including considering the outcome of certain recent legal cases involving other taxpayers. As a result of this evaluation, in the third quarter of 2019, PLNL paid withholding tax to the Board of Inland Revenue under the amnesty program for tax years back to 2011, and recognized a charge for $32 million in the third quarter of 2019. Our 50% share of PLNL’s tax charge was $16 million, which reduced our equity in earnings of operating affiliate for 2019. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Our cash and cash equivalents and other investments consist of the following: December 31, 2020 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 108 $ — $ — $ 108 Cash equivalents: U.S. and Canadian government obligations 552 — — 552 Other debt securities 23 — — 23 Total cash and cash equivalents $ 683 $ — $ — $ 683 Nonqualified employee benefit trusts 16 3 — 19 December 31, 2019 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 59 $ — $ — $ 59 Cash equivalents: U.S. and Canadian government obligations 211 — — 211 Other debt securities 17 — — 17 Total cash and cash equivalents $ 287 $ — $ — $ 287 Nonqualified employee benefit trusts 17 2 — 19 Under our short-term investment policy, we may invest our cash balances, either directly or through mutual funds, in several types of investment-grade securities, including notes and bonds issued by governmental entities or corporations. Securities issued by governmental entities include those issued directly by the U.S. and Canadian federal governments; those issued by state, local or other governmental entities; and those guaranteed by entities affiliated with governmental entities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present assets and liabilities included in our consolidated balance sheets as of December 31, 2020 and 2019 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value: December 31, 2020 Total Fair Value Quoted Prices Significant Significant (in millions) Cash equivalents $ 575 $ 575 $ — $ — Nonqualified employee benefit trusts 19 19 — — Derivative assets 1 — 1 — Derivative liabilities (7) — (7) — Embedded derivative liability (18) — (18) — December 31, 2019 Total Fair Value Quoted Prices Significant Significant (in millions) Cash equivalents $ 228 $ 228 $ — $ — Nonqualified employee benefit trusts 19 19 — — Derivative liabilities (12) — (12) — Embedded derivative liability (20) — (20) — Cash Equivalents As of December 31, 2020 and 2019, our cash equivalents consisted primarily of U.S. and Canadian government obligations and money market mutual funds that invest in U.S. government obligations and other investment-grade securities. Nonqualified Employee Benefit Trusts We maintain trusts associated with certain nonqualified supplemental pension plans. The fair values of the trust assets are based on daily quoted prices in an active market, which represents the net asset values of the shares held in the trusts, and are included on our consolidated balance sheets in other assets. Debt securities are accounted for as available-for-sale securities and changes in fair value are reported in other comprehensive income. Changes in the fair value of available-for-sale equity securities in the trust assets are recognized through earnings. Derivative Instruments The derivative instruments that we may use are primarily natural gas fixed price swaps, basis swaps and options traded in the OTC markets with multi-national commercial banks, other major financial institutions or large energy companies. The natural gas derivative contracts represent anticipated natural gas needs for future periods and settlements are scheduled to coincide with anticipated natural gas purchases during those future periods. The natural gas derivative contracts settle using primarily a NYMEX futures price index. To determine the fair value of these instruments, we use quoted market prices from NYMEX and standard pricing models with inputs derived from or corroborated by observable market data such as forward curves supplied by an industry-recognized independent third party. See Note 15—Derivative Financial Instruments for additional information. Embedded Derivative Liability Under the terms of our strategic venture with CHS, if our credit rating as determined by two of three specified credit rating agencies is below certain levels, we are required to make a non-refundable yearly payment of $5 million to CHS. Since 2016, our credit ratings have been below certain levels and, as a result, we made an annual payment of $5 million to CHS in the fourth quarter of each year. These payments will continue on a yearly basis until the earlier of the date that our credit rating is upgraded to or above certain levels by two of the three specified credit rating agencies or February 1, 2026. This obligation is recognized on our consolidated balance sheets as an embedded derivative and is included within other current liabilities and other liabilities. As of December 31, 2020 and 2019, the embedded derivative liability was $18 million and $20 million, respectively. Included in other operating—net in our consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018 is a net loss of $3 million, $4 million and $1 million, respectively. The inputs into the fair value measurement include the probability of future upgrades and downgrades of our credit rating based on historical credit rating movements of other public companies and the discount rates to be applied to potential annual payments based on applicable credit spreads of other public companies at different credit rating levels. Based on these inputs, our fair value measurement is classified as Level 2. See Note 17—Noncontrolling Interests for additional information regarding our strategic venture with CHS. Financial Instruments The carrying amounts and estimated fair value of our financial instruments are as follows: December 31, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value (in millions) Long-term debt, including current maturities $ 3,961 $ 4,731 $ 3,957 $ 4,295 The fair value of our long-term debt was based on quoted prices for identical or similar liabilities in markets that are not active or valuation models in which all significant inputs and value drivers are observable and, as a result, they are classified as Level 2 inputs. The carrying amounts of cash and cash equivalents, as well as instruments included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair values because of their short-term maturities. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We also have assets and liabilities that may be measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment, when there is allocation of purchase price in an acquisition or when a new liability is being established that requires fair value measurement. These include long-lived assets, goodwill and other intangible assets and investments in unconsolidated subsidiaries, such as equity method investments, which may be written down to fair value as a result of impairment. The fair value measurements related to each of these rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets. Since certain of the Company’s assumptions would involve inputs that are not observable, these fair values would reside within Level 3 of the fair value hierarchy. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision The components of earnings before income taxes and the components of our income tax provision are as follows: Year ended December 31, 2020 2019 2018 (in millions) Domestic $ 421 $ 679 $ 516 Non-U.S. 42 93 31 Earnings before income taxes $ 463 $ 772 $ 547 Current Federal $ 106 $ 4 $ 5 Foreign 6 21 14 State (7) (48) 6 105 (23) 25 Deferred Federal (76) 112 85 Foreign 4 — (10) State (2) 37 3 (74) 149 78 Income tax provision before Tax Reform 31 126 103 Tax Reform - Current Federal — — 19 Foreign — — — State — — (3) Income tax provision - Tax Reform — — 16 Income tax provision $ 31 $ 126 $ 119 Terra Amended Tax Returns We completed the acquisition of Terra Industries Inc. (Terra) in April 2010. After the acquisition, we determined that the manner in which Terra reported the repatriation of cash from foreign affiliates to its U.S. parent for U.S. and foreign income tax purposes was not appropriate. As a result, in 2012 we amended certain tax returns, including Terra’s income and withholding tax returns, back to 1999 (the Amended Tax Returns) and paid additional income and withholding taxes, and related interest and penalties. In early 2013, the Internal Revenue Service (IRS) commenced an examination of the U.S. tax aspects of the Amended Tax Returns. In 2017, we also made a Voluntary Disclosure Filing with the Canadian Revenue Agency (CRA) with respect to the Canadian tax aspects of this matter and paid additional Canadian taxes due. In early 2019, the IRS completed its examination of the Amended Tax Returns and submitted its audit reports and related refund claims to the Joint Committee on Taxation of the U.S. Congress (the Joint Committee). For purposes of its review, the Joint Committee separated the IRS audit reports into two separate matters: (i) an income tax related matter and (ii) a withholding tax matter. In late 2019, we received notification that the Joint Committee had approved the IRS audit reports and related income tax refunds relating to the income tax related matter. As a result of the approval by the Joint Committee, we recognized in the fourth quarter of 2019 the following amounts in our consolidated statement of operations; (i) $5 million of interest income ($4 million, net of tax); and (ii) a reduction in income tax expense of $10 million as a result of the favorable settlement of certain uncertain tax positions. No income tax refunds were received in 2019 related to the Amended Tax Returns. In 2020, we received notification that the Joint Committee approved the IRS audit report and related withholding tax refunds relating to the withholding tax matter and we received IRS Notices indicating the amount of tax and interest to be refunded and received with respect to the withholding tax matter and the income tax matter. In addition, the CRA settled with us the Voluntary Disclosure matter. In 2020, as a result of these events, we recognized $26 million of interest-related income and $18 million of income tax benefit, which consisted of the following: • additional income of $26 million ($23 million, net of tax) representing $16 million of interest income related to the U.S. Federal income tax matter and withholding tax matter and a $10 million reversal of previously accrued interest related to the Canadian tax aspects of this matter, • a reduction in our liabilities for unrecognized tax benefits of $12 million with a corresponding reduction in income tax expense related to the U.S. Federal withholding tax matter, and • an additional income tax benefit of $9 million related to the U.S. Federal income tax matter and related state amended returns. In 2020, we received U.S. Federal income tax refunds, including interest, of $110 million relating to the Amended Tax Returns, consisting of $68 million related to the income tax matter and $42 million related to the withholding tax matter, which finalized these matters with the IRS. As a result of the finalization of the income tax matter and the withholding tax matter, all U.S. federal tax years commencing before January 1, 2012 are now closed. In the first quarter of 2021, we received approximately $20 million of withholding tax refunds, including interest, from the CRA, related to the Voluntary Disclosure Filing. These amounts were previously recorded in our consolidated balance sheet as of December 31, 2020. Canada Revenue Agency Notices of Reassessment In 2016, the Canada Revenue Agency (CRA) issued Notices of Reassessment for tax years 2006 through 2009 to one of our Canadian affiliates asserting a disallowance of certain patronage allocations. The tax assessments totaled CAD $174 million (or approximately $137 million), including provincial taxes but excluding any interest or penalties. We filed a Notice of Objection with respect to the Notices of Reassessment with the CRA and Alberta Tax and Revenue Administration and we posted letters of credit in lieu of paying the additional tax liability assessed. In 2018, the matter was accepted for consideration under the bilateral settlement provisions of the US-Canada Tax Treaty (the Treaty) by the United States and Canadian competent authorities and was subject to a two-year period to reach a settlement. The period was subsequently extended, but it expired in February 2021 and the matter is being referred to binding arbitration under the provisions of the Treaty. While there is uncertainty about the ultimate timing and outcome of this matter, which may be resolved in binding arbitration, we do not expect that resolution of the matter will result in a material net tax liability, because the Company would be entitled to an offsetting U.S. foreign tax credit for any incremental Canadian tax paid. Upon resolution of the matter, interest would be assessed based upon the amount of tax due. Similarly, the Company would be entitled to receive interest on the offsetting reduction in tax due to the foreign tax credit. Due to uncertainty in how each taxing authority would apply their interest calculation rules, we are not able to predict the net amount of interest that we would pay to or receive from the taxing authorities. Tax Reform The Tax Cuts and Jobs Act (the “Tax Act” or “Tax Reform”) was enacted on December 22, 2017. Among other provisions, the Tax Act imposed a transition tax liability on taxpayers with undistributed foreign entity earnings. In 2018, we recorded a $16 million increase to the provisional amount of the transition tax liability. The adjustment to the provisional amount was required to properly reflect the inclusion of amounts subject to the transition tax in tax returns where the amounts were to be reported. The adjustment related to changes in (i) the amount of includible income subject to the transition tax; (ii) the computation of the allowable foreign tax credits against the transition tax liability and (iii) the allocation of certain gains and losses to various foreign tax credit baskets. The adjustment to the provisional amount represented an approximate 3 percentage point increase to our effective tax rate for the year ended December 31, 2018. The Tax Act also provided a new category of income from foreign operations, Global Intangible Low-Taxed Income (GILTI), that was subject to federal income tax beginning in the year ended December 31, 2018. The U.S. tax on foreign earnings in the effective tax rate table below includes our tax on GILTI, which is primarily related to Canadian earnings. COVID-19 Tax Legislation In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was signed into law. The CARES Act includes, among other things, a five-year net operating loss (NOL) carryback (including a related technical correction to the 2017 Tax Cuts and Jobs Act) for tax losses incurred in tax years 2018 through 2020, a change in interest deduction limitations for tax years 2019 and 2020, increasing the annual interest limitation from 30% to 50% of adjusted taxable income and increased refundability of corporate alternative minimum tax (AMT) credits. These provisions have limited applicability to the Company. On December 27, 2020, the Consolidated Appropriations Act, 2021 (the CAA) was signed into law. The CAA extends certain provisions of the CARES Act, provides additional funding for others and contains new relief provisions. The tax provisions within this legislation will not have a significant effect on the Company. We continue to monitor and assess the impact of tax legislation related to COVID-19 in all tax jurisdictions in which we operate. Effective Tax Rate Differences in the expected income tax provision based on statutory rates applied to earnings before income taxes and the income tax provision reflected in the consolidated statements of operations are summarized below. Year ended December 31, 2020 2019 2018 (in millions, except percentages) Earnings before income taxes $ 463 $ 772 $ 547 Expected tax provision at U.S. statutory rate of 21% $ 97 $ 162 $ 115 State income taxes, net of federal (1) 2 3 Net earnings attributable to noncontrolling interests (24) (32) (29) Foreign tax rate differential 1 2 — U.S. tax on foreign earnings (6) 3 12 Foreign partnership basis difference (7) — — Valuation allowance — — 4 Tax rate change — — (2) Terra amended tax returns (24) (10) — Other (5) (1) — Transition tax liability (Tax Reform) — — 16 Income tax provision $ 31 $ 126 $ 119 Effective tax rate 6.7 % 16.3 % 21.7 % Income tax provision before Tax Reform (1) $ 31 $ 126 $ 103 Effective tax rate before Tax Reform 6.7 % 16.3 % 18.7 % _______________________________________________________________________________ (1) Income tax provision before Tax Reform reflects the income tax provision less the Tax Reform impact included in the table above consisting of the transition tax liability. On April 2, 2018, we acquired the TNCLP Public Units. Our effective tax rate in 2018 was impacted by a $16 million reduction to our deferred tax liability as a result of the change in our effective state income tax rate due to the implementation of legal entity structure changes related to the acquisition. See Note 17—Noncontrolling Interests for additional information. The foreign tax rate differential is impacted by the inclusion of equity earnings from our equity method investment in PLNL, a foreign operating affiliate, which are included in pre-tax earnings on an after-tax basis. In 2020, the foreign tax rate differential includes $6 million tax expense for the revaluing of deferred taxes due to an enacted rate change in the jurisdiction of a foreign affiliate. U.S. tax on foreign earnings for the year ended December 31, 2020 is inclusive of the current year tax on global intangible low-tax income (GILTI), benefit from the Section 250 deduction and foreign tax credits, as well as adjustments to prior year amounts for these items recorded upon filing the U.S. federal return in the fourth quarter of 2020. Our effective tax rate is impacted by earnings attributable to noncontrolling interests in CFN and, prior to April 2, 2018, TNCLP, as our consolidated income tax provision does not include a tax provision on the earnings attributable to the noncontrolling interests. As a result, earnings attributable to the noncontrolling interests of $115 million, $153 million and $138 million in 2020, 2019 and 2018, respectively, which are included in earnings before income taxes, impacted the effective tax rate in all three years. See Note 17—Noncontrolling Interests for additional information. Deferred Taxes Deferred tax assets and deferred tax liabilities are as follows: December 31, 2020 2019 (in millions) Deferred tax assets: Net operating loss and capital loss carryforwards $ 194 $ 108 Retirement and other employee benefits 69 71 State tax credits 69 72 Operating lease liabilities 61 66 Other 23 61 416 378 Valuation allowance (157) (60) 259 318 Deferred tax liabilities: Depreciation and amortization (204) (276) Investments in partnerships (1,173) (1,217) Operating lease right-of-use assets (60) (65) Other (6) (6) (1,443) (1,564) Net deferred tax liability $ (1,184) $ (1,246) We consider the earnings of our United Kingdom subsidiaries to be permanently reinvested. As of December 31, 2020, we would not expect any additional U.S. and foreign income tax that would be due upon repatriation of these accumulated earnings, other than foreign withholding tax, which we have not accrued. During 2019, as a result of group legal entity reorganizations, foreign net operating loss carryforwards were eliminated, which resulted in a net decrease of $99 million in the net operating loss carryforwards deferred tax asset. We recorded a corresponding reduction in the related valuation allowance of $99 million as these losses were not anticipated to be realized. The valuation allowance activity in the current year is primarily attributable to a capital loss. As a result of an intercompany transaction with a foreign affiliate, we recognized a capital loss which will be carried forward and for which we recorded a deferred tax asset of approximately $90 million. The foreign affiliate operations do not normally generate capital gains and there is no practical plan to do so in the future, therefore, we established a full valuation allowance of approximately $90 million against the deferred tax asset. As of December 31, 2020, our net operating loss and capital loss carryforwards are comprised of state net operating loss carryforwards with expiration dates generally ranging from 2027 to 2037 and foreign capital loss carryforwards, which can be carried forward indefinitely. Our foreign affiliates, including the foreign affiliate described above, have operations that do not normally generate capital gains and have no practical plans to do so in the future. As a result, we have recorded a full valuation allowance against all foreign capital loss carryforwards. As of December 31, 2020, we have state tax credit carryforwards resulting in a deferred tax asset of $69 million. The state tax credits have expiration dates generally ranging from 2033 to 2040. We have recorded a $27 million valuation allowance on the portion of the state tax credits that are not expected to be realized before they expire based on taxable income projections. Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, 2020 2019 (in millions) Unrecognized tax benefits: Balance as of January 1 $ 104 $ 126 Additions for tax positions taken during the current year — — Additions for tax positions taken during prior years — 22 Reductions related to lapsed statutes of limitations — — Reductions related to settlements with tax jurisdictions (23) (44) Balance as of December 31 $ 81 $ 104 Our effective tax rate would be affected by $37 million if these unrecognized tax benefits were to be recognized in the future. In 2020, as a result of the settlement and finalization of carryover impacts of the Terra Amended Tax Returns on other tax periods, we reduced our liability for unrecognized tax benefits by $19 million and recorded a corresponding deferred income tax liability. In addition, we reduced our liabilities for unrecognized tax benefits by $4 million with a corresponding reduction in income tax provision. In 2019, we increased the amount of our unrecognized tax benefits by $22 million. The increase primarily related to an addition for state investment tax credits. In addition, we reduced the amount of our unrecognized tax benefits in 2019 by $44 million. This reduction primarily related to the approval by the Joint Committee of the IRS audit report related to the Terra Amended Tax Returns described above. We file federal, provincial, state and local income tax returns principally in the United States, Canada and the United Kingdom, as well as in certain other foreign jurisdictions. In general, filed tax returns remain subject to examination by United States tax jurisdictions for years 2012 and thereafter, by Canadian tax jurisdictions for years 2006 and thereafter, and by United Kingdom tax jurisdictions for years 2018 and thereafter. Our income tax liability or transition tax expense could be impacted by the finalization of currently on-going U.S. or foreign income tax audits of prior tax years falling before the date of enactment of the Tax Act or audits by the U.S. or foreign taxing authorities, which change the amount of our total income allocable to and taxed in the United States or a foreign country. Interest expense and penalties of $(29) million, $4 million, and $1 million were recorded for the years ended December 31, 2020, 2019 and 2018, respectively. Amounts recognized in our consolidated balance sheets for accrued interest and penalties related to income taxes of $4 million and $33 million as of December 31, 2020 and 2019, respectively, are included in other liabilities. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits We maintain five funded pension plans, consisting of three in North America (one U.S. plan and two Canadian plans) and two in the United Kingdom. One of our Canadian plans is closed to new employees and the two United Kingdom plans are closed to new employees and future accruals. The portion of the U.S. plan that is open to new employees is a cash balance plan, which provides benefits based on years of service and interest credits. We also provide group medical insurance benefits to certain retirees in North America. The specific medical benefits provided to retirees vary by group and location. Our plan assets, benefit obligations, funded status and amounts recognized on our consolidated balance sheets for our North America and United Kingdom plans as of the December 31 measurement date are as follows: Pension Plans Retiree Medical Plans North America United Kingdom North America December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 (in millions) Change in plan assets Fair value of plan assets as of January 1 $ 790 $ 673 $ 418 $ 383 $ — $ — Return on plan assets 96 115 58 19 — — Employer contributions 22 38 23 23 4 3 Plan participant contributions — — — — 1 1 Benefit payments (66) (43) (25) (23) (5) (4) Foreign currency translation 4 7 17 16 — — Fair value of plan assets as of December 31 846 790 491 418 — — Change in benefit obligation Benefit obligation as of January 1 (839) (742) (597) (524) (37) (43) Service cost (17) (14) — — — — Interest cost (25) (30) (11) (15) (1) (1) Benefit payments 66 43 25 23 5 4 Foreign currency translation (4) (7) (20) (22) — — Plan amendments — (4) — 3 — — Plan participant contributions — — — — (1) (1) Change in assumptions and other (65) (85) (40) (62) (1) 4 Benefit obligation as of December 31 (884) (839) (643) (597) (35) (37) Funded status as of December 31 $ (38) $ (49) $ (152) $ (179) $ (35) $ (37) In the table above, the line titled “Plan amendments” for 2019 relates to the impact of updates to certain mortality tables for the U.S. plan and a conversion option for pensions in payment for the U.K. plans. The line titled “Change in assumptions and other” for our North America pension plans primarily reflects the impact of losses due to the decrease in discount rates for 2020 and 2019. The line titled “Change in assumptions and other” for our U.K. pension plans primarily reflects losses due to the decrease in discount rates for 2020 and 2019. For 2019, the losses from the decrease in discount rates was partially offset by gains due to the decrease in inflation rate assumptions. The line titled “Benefit payments” includes $22 million of lump sum payments for our U.S. pension plan in December 2020. Amounts recognized on the consolidated balance sheets consist of the following: Pension Plans Retiree Medical Plans North America United Kingdom North America December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 (in millions) Other assets $ 10 $ 10 $ — $ — $ — $ — Accrued expenses — — — — (3) (3) Other liabilities (48) (59) (152) (179) (32) (34) $ (38) $ (49) $ (152) $ (179) $ (35) $ (37) Pre-tax amounts recognized in accumulated other comprehensive loss consist of the following: Pension Plans Retiree Medical Plans North America United Kingdom North America December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 (in millions) Prior service cost $ 4 $ 5 $ 1 $ 1 $ — $ — Net actuarial loss 79 82 129 132 4 2 $ 83 $ 87 $ 130 $ 133 $ 4 $ 2 Net periodic benefit cost (income) and other amounts recognized in accumulated other comprehensive loss for the years ended December 31 included the following: Pension Plans Retiree Medical Plans North America United Kingdom North America 2020 2019 2018 2020 2019 2018 2020 2019 2018 (in millions) Service cost $ 17 $ 14 $ 15 $ — $ — $ — $ — $ — $ — Interest cost 25 30 28 11 15 14 1 1 2 Expected return on plan assets (30) (32) (31) (14) (18) (17) — — — Amortization of prior service cost (benefit) 1 — — — — — — (1) (1) Amortization of actuarial loss (gain) 3 — 3 3 — — (1) (1) (1) Net periodic benefit cost (income) 16 12 15 — (3) (3) — (1) — Net actuarial (gain) loss (1) 3 3 (4) 60 (3) 1 (4) (8) Prior service cost (credit) — 4 — — (3) 5 — — — Amortization of prior service (cost) benefit (1) — — — — — — 1 1 Amortization of actuarial (loss) gain (3) — (3) (3) — — 1 1 1 Total recognized in accumulated other comprehensive loss (5) 7 — (7) 57 2 2 (2) (6) Total recognized in net periodic benefit cost (income) and accumulated other comprehensive loss $ 11 $ 19 $ 15 $ (7) $ 54 $ (1) $ 2 $ (3) $ (6) In the table above, the line titled “Prior service cost (credit)” in 2019 relates to plan amendments for updates to certain mortality tables for the U.S. plan and a conversion option for pensions in payment for the U.K. plans. Service costs are recognized in cost of sales and selling, general and administrative expenses, and other costs are recognized in other non-operating—net on our consolidated statements of operations. The accumulated benefit obligation (ABO) in aggregate for the defined benefit pension plans in North America was approximately $834 million and $793 million as of December 31, 2020 and 2019, respectively. The ABO in aggregate for the defined benefit pension plans in the United Kingdom was approximately $643 million and $597 million as of December 31, 2020 and 2019, respectively. The following table presents aggregated information for those individual defined benefit pension plans that have an ABO in excess of plan assets as of December 31, which excludes two North American defined benefit pension plans that have plan assets in excess of its ABO: North America United Kingdom 2020 2019 2020 2019 (in millions) Accumulated benefit obligation $ (678) $ (654) $ (643) $ (597) Fair value of plan assets 667 630 491 418 The following table presents aggregated information for those individual defined benefit pension plans that have a projected benefit obligation (PBO) in excess of plan assets as of December 31, which excludes two North American defined benefit pension plans that have plan assets in excess of its PBO: North America United Kingdom 2020 2019 2020 2019 (in millions) Projected benefit obligation $ (715) $ (689) $ (643) $ (597) Fair value of plan assets 667 630 491 418 Our pension funding policy in North America is to contribute amounts sufficient to meet minimum legal funding requirements plus discretionary amounts that we may deem to be appropriate. Actual contributions may vary from estimated amounts depending on changes in assumptions, actual returns on plan assets, changes in regulatory requirements and funding decisions. In accordance with United Kingdom pension legislation, our United Kingdom pension funding policy is to contribute amounts sufficient to meet the funding level target agreed between the employer and the trustees of the United Kingdom plans. Actual contributions are usually agreed with the plan trustees in connection with each triennial valuation and may vary following each such review depending on changes in assumptions, actual returns on plan assets, changes in regulatory requirements and funding decisions. We currently estimate that our consolidated pension funding contributions for 2021 will be approximately $6 million for the North America plans and $27 million for the United Kingdom plans. The expected future benefit payments for our pension and retiree medical plans are as follows: Pension Plans Retiree Medical Plans North America United Kingdom North America (in millions) 2021 $ 47 $ 27 $ 3 2022 47 28 3 2023 48 29 2 2024 48 30 2 2025 49 30 2 2026-2030 251 163 9 The following assumptions were used in determining the benefit obligations and expense: Pension Plans Retiree Medical Plans North America United Kingdom North America 2020 2019 2018 2020 2019 2018 2020 2019 2018 Weighted-average discount rate—obligation 2.4 % 3.1 % 4.1 % 1.5 % 2.0 % 2.9 % 2.2 % 3.0 % 4.1 % Weighted-average discount rate—expense 3.1 % 4.1 % 3.6 % 2.0 % 2.9 % 2.5 % 3.0 % 4.1 % 3.4 % Weighted-average cash balance interest crediting rate—obligation 3.0 % 3.0 % 3.0 % n/a n/a n/a n/a n/a n/a Weighted-average cash balance interest crediting rate—expense 3.0 % 3.0 % 3.0 % n/a n/a n/a n/a n/a n/a Weighted-average rate of increase in future compensation 4.2 % 4.2 % 4.3 % n/a n/a n/a n/a n/a n/a Weighted-average expected long-term rate of return on assets—expense 4.1 % 4.6 % 4.5 % 3.4 % 4.4 % 4.2 % n/a n/a n/a Weighted-average retail price index—obligation n/a n/a n/a 3.0 % 3.0 % 3.3 % n/a n/a n/a Weighted-average retail price index—expense n/a n/a n/a 3.0 % 3.3 % 3.2 % n/a n/a n/a ______________________________________________________________________________ n/a—not applicable The discount rates for all plans are developed by plan using spot rates derived from a hypothetical yield curve of high quality (AA rated or better) fixed income debt securities as of the year-end measurement date to calculate discounted cash flows (the projected benefit obligation) and solving for a single equivalent discount rate that produces the same projected benefit obligation. In determining our benefit obligation, we use the actuarial present value of the vested benefits to which each eligible employee is currently entitled, based on the employee’s expected date of separation or retirement. The cash balance interest crediting rate for the U.S. plan is based on the greater of 10-year Treasuries or 3.0%. For our North America plans, the expected long-term rate of return on assets is based on analysis of historical rates of return achieved by equity and non-equity investments and current market characteristics, adjusted for estimated plan expenses and weighted by target asset allocation percentages. As of January 1, 2021, our weighted-average expected long-term rate of return on assets is 3.2%, which will be used in determining expense for 2021. For our United Kingdom plans, the expected long-term rate of return on assets is based on the expected long-term performance of the underlying investments, adjusted for investment managers’ fees and estimated plan expenses. As of January 1, 2021, our weighted-average expected long-term rate of return on assets is 3.3%, which will be used in determining expense for 2021. The retail price index for the United Kingdom plans is developed using the Bank of England implied retail price inflation curve, which is based on the difference between yields on fixed interest government bonds and index-linked government bonds. For the measurement of the benefit obligation at December 31, 2020 for our primary (U.S.) retiree medical benefit plans, the assumed health care cost trend rates, for pre-65 retirees, start with a 6.3% increase in 2021, followed by a gradual decline in increases to 4.5% for 2030 and thereafter. For post-65 retirees, the assumed health care cost trend rates start with a 7.0% increase in 2021, followed by a gradual decline in increases to 4.5% for 2030 and thereafter. For the measurement of the benefit obligation at December 31, 2019 for our primary (U.S.) retiree medical benefit plans, the assumed health care cost trend rates, for pre-65 retirees, started with a 7.0% increase in 2020, followed by a gradual decline in increases to 4.5% for 2026 and thereafter. For post-65 retirees, the assumed health care cost trend rates started with an 8.3% increase in 2020, followed by a gradual decline in increases to 4.5% for 2026 and thereafter. The objectives of the investment policies governing the pension plans are to administer the assets of the plans for the benefit of the participants in compliance with all laws and regulations, and to establish an asset mix that provides for diversification and considers the risk of various different asset classes with the purpose of generating favorable investment returns. The investment policies consider circumstances such as participant demographics, time horizon to retirement and liquidity needs, and provide guidelines for asset allocation, planning horizon, general portfolio issues and investment manager evaluation criteria. The investment strategies for the plans, including target asset allocations and investment vehicles, are subject to change within the guidelines of the policies. The target asset allocation for our U.S. pension plan is 80% non-equity and 20% equity, which has been determined based on analysis of actual historical rates of return and plan needs and circumstances. The equity investments are tailored to exceed the growth of the benefit obligation and are a combination of U.S. and non-U.S. total stock market index mutual funds. The non-equity investments consist primarily of investments in debt securities and money market instruments that are selected based on investment quality and duration to mitigate volatility of the funded status and annual required contributions. The non-equity investments have a duration profile that is similar to the benefit obligation in order to mitigate the impact of interest rate changes on the funded status. This investment strategy is achieved through the use of mutual funds and individual securities. The target asset allocation for one of the Canadian plans is 70% non-equity and 30% equity, and 100% non-equity for the other Canadian plan. This investment strategy is achieved through the use of a mutual fund for equity investments and individual securities for non-equity investments. The equity investment is a passively managed portfolio that diversifies assets across multiple securities, economic sectors and countries. The non-equity investments consist primarily of investments in debt securities that are selected based on investment quality and duration to mitigate volatility of the funded status and annual required contributions. The non-equity investments have a duration profile that is similar to the benefit obligation in order to mitigate the impact of interest rate changes on the funded status. The pension assets in the United Kingdom plans are each administered by a Board of Trustees consisting of employer nominated trustees, member nominated trustees and an independent trustee, with a requirement that member nominated trustees represent at least one-third of each Board of Trustees. It is the responsibility of the trustees to ensure prudent management and investment of the assets in the plans. The trustees meet on a quarterly basis to review and discuss fund performance and other administrative matters. The trustees’ investment objectives are to hold assets that generate returns sufficient to cover prudently each plan’s liability without exposing the plans to unacceptable risk. This is accomplished through the asset allocation strategy of each plan. For both plans, if the asset allocation moves more than plus or minus 5% from the benchmark allocation, the trustees may decide to amend the asset allocation. At a minimum, the trustees review the investment strategy at every triennial actuarial valuation to ensure that the strategy remains consistent with its funding principles. The trustees may review the strategy more frequently if opportunities arise to reduce risk within the investments without jeopardizing the funding position. Assets of the United Kingdom plans are invested in externally managed pooled funds. The assets are allocated between a growth portfolio and a matching portfolio. The growth portfolio seeks a return premium on investments across multiple asset classes. Growth portfolio funds may include, among others, traditional equities and bonds, growth fixed income, hedged funds, and may use derivatives. The matching portfolio seeks to align asset changes with changes in liability due to interest and discount rate. Matching portfolio funds are composed of corporate bonds, U.K. gilts and liability-driven investment funds and generally invest in fixed income debt securities including government bonds, gilts, gilt repurchase agreements, swaps and investment grade corporate bonds and may use derivatives. The target asset allocation for one of the United Kingdom plans is 55% in the growth portfolio and 45% in the matching portfolio and the other United Kingdom plan is 60% in the growth portfolio (including a legacy holding in an actively managed property fund) and 40% in the matching portfolio. The fair values of our pension plan assets as of December 31, 2020 and 2019, by major asset class, are as follows: North America December 31, 2020 Total Fair Quoted Significant Significant (in millions) Cash and cash equivalents (1) $ 30 $ 7 $ 23 $ — Equity mutual funds Index equity (2) 134 134 — — Pooled equity (3) 30 — 30 — Fixed income U.S. Treasury bonds and notes (4) 37 37 — — Corporate bonds and notes (5) 499 — 499 — Government and agency securities (6) 110 — 110 — Other (7) 7 — 7 — Total assets at fair value by fair value levels $ 847 $ 178 $ 669 $ — Accruals and payables—net (1) Total assets $ 846 United Kingdom December 31, 2020 Total Fair Quoted Significant Significant (in millions) Cash and cash funds (8) $ 22 $ 5 $ 17 $ — Pooled equity funds (9) 118 — 118 — Pooled diversified funds (10) 55 — 55 — Debt funds Pooled U.K. government fixed and index-linked securities funds (11) 73 — 73 — Pooled global debt funds (12) 88 — 88 — Pooled liability-driven investment funds (13) 83 — 83 — Total assets at fair value by fair value levels $ 439 $ 5 $ 434 $ — Funds measured at NAV as a practical expedient (14) 52 Total assets $ 491 North America December 31, 2019 Total Fair Quoted Significant Significant (in millions) Cash and cash equivalents (1) $ 21 $ 1 $ 20 $ — Equity mutual funds Index equity (2) 137 137 — — Pooled equity (3) 35 — 35 — Fixed income U.S. Treasury bonds and notes (4) 25 25 — — Corporate bonds and notes (5) 472 — 472 — Government and agency securities (6) 93 — 93 — Other (7) 8 — 8 — Total assets at fair value by fair value levels $ 791 $ 163 $ 628 $ — Accruals and payables—net (1) Total assets $ 790 United Kingdom December 31, 2019 Total Fair Quoted Significant Significant (in millions) Cash $ 4 $ 4 $ — $ — Pooled target return funds (15) 220 — 220 — Fixed income Pooled U.K. government index-linked securities funds (16) 32 — 32 — Pooled global fixed income funds (17) 33 — 33 — Pooled liability-driven investment funds (13) 84 — 84 — Total assets at fair value by fair value levels $ 373 $ 4 $ 369 $ — Pooled property funds measured at NAV as a practical expedient (14) 45 Total assets $ 418 _______________________________________________________________________________ (1) Cash and cash equivalents are primarily repurchase agreements and short-term money market funds . (2) The index equity funds are mutual funds that utilize a passively managed investment approach designed to track specific equity indices. They are valued at quoted market prices in an active market, which represent the net asset values of the shares held by the plan. (3) The equity pooled mutual funds consist of pooled funds that invest in common stock and other equity securities that are traded on U.S., Canadian, and foreign markets. (4) U.S. Treasury bonds and notes are valued based on quoted market prices in an active market. (5) Corporate bonds and notes, including private placement securities, are valued by institutional bond pricing services, which gather information from market sources and integrate credit information, observed market movements and sector news into their pricing applications and models. (6) Government and agency securities consist of U.S. municipal bonds and Canadian provincial bonds that are valued by institutional bond pricing services, which gather information on current trading activity, market movements, trends, and specific data on specialty issues. (7) Other includes primarily mortgage-backed and asset-backed securities, which are valued by institutional pricing services, which gather information from market sources and integrate credit information, observed market movements and sector news into their pricing applications and models. (8) Cash and cash funds include a cash fund that holds primarily short-dated term money market securities. (9) Pooled equity funds invest in a broad array of global equity, equity-related securities, a range of diversifiers and may use derivatives for efficient portfolio management. The funds are valued at net asset value (NAV) as determined by the fund managers based on the value of the underlying net assets of the fund. (10) Pooled diversified funds invest in broad array of asset classes and a range of diversifiers including the use of derivatives. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (11) Pooled U.K. government fixed and index-linked securities funds invest primarily in Sterling denominated fixed income and inflation-linked fixed income securities issued or guaranteed by the U.K. government and may use derivatives for efficient portfolio management. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (12) Pooled global debt funds invest in a broad array of debt securities from corporate and government bonds to emerging markets and high-yield fixed and floating rate securities of varying maturities. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (13) Pooled liability-driven investment funds invest primarily in gilt repurchase agreements, physical United Kingdom government gilts, and derivatives to provide exposure to interest rates, thus hedging this element of risk associated with pension liabilities. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (14) Funds measured at NAV as a practical expedient in 2020 include two funds of funds with return strategies with exposure to varying asset classes and credit strategies, as well as alternative investment strategies not precluding multi-asset credit strategies, global macro strategies, commodities, fixed income, equities and currency, and in 2020 and 2019, pooled property funds that invest primarily in freehold and leasehold property in the United Kingdom. The funds are valued using NAV as determined by the fund managers based on the value of the underlying assets of the fund. (15) Pooled target return funds invest in a broad array of asset classes and a range of diversifiers including the use of derivatives. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (16) Pooled U.K. government index-linked securities funds invest primarily in United Kingdom government index-linked gilt securities. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (17) Pooled global fixed income funds invest primarily in government bonds, investment grade corporate bonds, high yield and emerging market bonds and can make use of derivatives. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. We have defined contribution plans covering substantially all employees in North America and the United Kingdom. Depending on the specific provisions of each plan, qualified employees receive company contributions based on a percentage of base salary, matching of employee contributions up to specified limits, or a combination of both. In 2020, 2019, and 2018, we recognized expense related to our contributions to the defined contribution plans of $22 million, $20 million, and $18 million, respectively. |
Financing Agreements
Financing Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financing Agreements | Financing Agreements Revolving Credit Agreement On December 5, 2019, CF Holdings and CF Industries entered into a senior secured Fourth Amended and Restated Credit Agreement (the Revolving Credit Agreement), which amended and restated our Third Amended and Restated Revolving Credit Agreement, as previously amended (referred to herein, as in effect from time to time, as the Prior Credit Agreement), that was scheduled to mature September 18, 2020. The Revolving Credit Agreement provides for a revolving credit facility of up to $750 million with a maturity of December 5, 2024. The Revolving Credit Agreement includes a letter of credit sub-limit of $125 million. Borrowings under the Revolving Credit Agreement may be used for working capital, capital expenditures, acquisitions, share repurchases and other general corporate purposes. Borrowings under the Revolving Credit Agreement may be denominated in U.S. dollars, Canadian dollars, euros and British pounds, and bear interest at a per annum rate equal to, at our option, an applicable eurocurrency rate or base rate plus, in either case, a specified margin. We are required to pay an undrawn commitment fee on the undrawn portion of the commitments under the Revolving Credit Agreement and customary letter of credit fees. The specified margin and the amount of the commitment fee depend on CF Holdings’ credit rating at the time. The guarantors under the Revolving Credit Agreement are currently comprised of CF Holdings and CF Holdings’ wholly owned subsidiaries CF Industries Enterprises, LLC (CFE), CF Industries Sales, LLC (CFS), CF USA Holdings, LLC (CF USA) and CF Industries Distribution Facilities, LLC (CFIDF). As of December 31, 2020, we had unused borrowing capacity under the Revolving Credit Agreement of $750 million and no outstanding letters of credit. There were no borrowings outstanding under the Revolving Credit Agreement as of December 31, 2020 or 2019, and there were no borrowings outstanding under the Prior Credit Agreement or the Revolving Credit Agreement during 2019. In March 2020, we borrowed $500 million under the Revolving Credit Agreement to ensure we maintained ample financial flexibility in light of the uncertainty in the global markets caused by the COVID-19 pandemic, which we repaid in April 2020. Maximum borrowings under the Revolving Credit Agreement during the year ended December 31, 2020 were $500 million. The weighted-average annual interest rate of borrowings under the Revolving Credit Agreement during the year ended December 31, 2020 was 2.05%. The Revolving Credit Agreement contains representations and warranties and affirmative and negative covenants, including financial covenants. As of December 31, 2020, we were in compliance with all covenants under the Revolving Credit Agreement. Letters of Credit In addition to the letters of credit that may be issued under the Revolving Credit Agreement, as described above, we have also entered into a bilateral agreement with capacity to issue letters of credit up to $250 million (reflecting an increase of $105 million in December 2020). As of December 31, 2020, approximately $125 million of letters of credit were outstanding under this agreement. Senior Notes Long-term debt presented on our consolidated balance sheets as of December 31, 2020 and 2019 consisted of the following debt securities issued by CF Industries: Effective Interest Rate December 31, 2020 December 31, 2019 Principal Carrying Amount (1) Principal Carrying Amount (1) (in millions) Public Senior Notes: 3.450% due June 2023 3.562% $ 750 $ 748 $ 750 $ 747 5.150% due March 2034 5.279% 750 741 750 740 4.950% due June 2043 5.031% 750 742 750 742 5.375% due March 2044 5.465% 750 741 750 741 Senior Secured Notes: 3.400% due December 2021 3.782% 250 249 250 248 4.500% due December 2026 4.759% 750 740 750 739 Total long-term debt $ 4,000 $ 3,961 $ 4,000 $ 3,957 Less: Current maturities of long-term debt 250 249 — — Long-term debt, net of current maturities $ 3,750 $ 3,712 $ 4,000 $ 3,957 _______________________________________________________________________________ (1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $9 million and $10 million as of December 31, 2020 and 2019, respectively, and total deferred debt issuance costs were $30 million and $33 million as of December 31, 2020 and 2019, respectively. Under the indentures (including the applicable supplemental indentures) governing the senior notes due 2023, 2034, 2043 and 2044 identified in the table above (the Public Senior Notes), each series of Public Senior Notes is guaranteed by CF Holdings. Under the terms of the applicable indenture, the 3.400% senior secured notes due December 2021 (the 2021 Notes) and the 4.500% senior secured notes due December 2026 (the 2026 Notes) identified in the table above (together, the Senior Secured Notes) are guaranteed on a senior secured basis, jointly and severally, by CF Holdings and each current and future domestic subsidiary of CF Holdings (other than CF Industries) that from time to time is a borrower, or guarantees indebtedness, under the Revolving Credit Agreement. The requirement for any subsidiary of CF Holdings to guarantee the Senior Secured Notes of a series will apply only until, and the subsidiary guarantees of the Senior Secured Notes of a series will be automatically released upon, CF Holdings having an investment grade corporate rating, with a stable or better outlook, from two of three selected ratings agencies and there being no default or event of default under the applicable indenture. The subsidiary guarantors of the Senior Secured Notes currently consist of CFE, CFS, CF USA and CFIDF. Subject to certain exceptions, the obligations under each series of Senior Secured Notes and each guarantor’s related guarantee are secured by a first priority security interest in substantially all of the assets of CF Industries, CF Holdings and the subsidiary guarantors, including a pledge by CF USA of its equity interests in CFN and mortgages over certain material fee-owned domestic real properties (the Collateral). The obligations under the Revolving Credit Agreement, together with certain letter of credit, cash management, hedging and similar obligations and future pari passu secured indebtedness, are secured by the Collateral on a pari passu basis with the Senior Secured Notes. The liens on the Collateral securing the obligations under the Senior Secured Notes of a series and the related guarantees will be automatically released and the covenant under the applicable indenture limiting dispositions of Collateral will no longer apply if CF Holdings has an investment grade corporate rating, with a stable or better outlook, from two of three selected ratings agencies and there is no default or event of default under the applicable indenture. On November 13, 2019, we redeemed in full all of the remaining $500 million outstanding principal amount of the 7.125% senior notes due May 2020 (the 2020 Notes), in accordance with the optional redemption provisions in the indenture governing the 2020 Notes. The total aggregate redemption price paid on the 2020 Notes in connection with the redemption was approximately $512 million, excluding accrued interest. As a result, we recognized a loss on debt extinguishment of $12 million, primarily consisting of premiums paid. On December 13, 2019, we redeemed $250 million principal amount, representing 50% of the $500 million principal amount outstanding immediately prior to such redemption, of the 2021 Notes in accordance with the optional redemption provisions in the indenture governing the 2021 Notes. The total aggregate redemption price paid in connection with the redemption was approximately $257 million, excluding accrued interest. As a result, we recognized a loss on debt extinguishment of $9 million, primarily consisting of premiums paid. On February 17, 2021, we announced that CF Industries elected to redeem in full the entire outstanding $250 million principal amount of the 2021 Notes on March 20, 2021, in accordance with the optional redemption provisions provided in the indenture governing the 2021 Notes. See Note 25—Subsequent Events for additional information. Interest on the Public Senior Notes and the Senior Secured Notes is payable semiannually, and the Public Senior Notes and Senior Secured Notes are redeemable at our option, in whole at any time or in part from time to time, at specified make-whole redemption prices. |
Interest Expense
Interest Expense | 12 Months Ended |
Dec. 31, 2020 | |
Interest Expense [Abstract] | |
Interest Expense | Interest Expense Details of interest expense are as follows: Year ended December 31, 2020 2019 2018 (in millions) Interest on borrowings (1) $ 185 $ 223 $ 228 Fees on financing agreements (1) 8 13 13 Interest on tax liabilities (2) (14) 3 1 Interest capitalized — (2) (1) Interest expense $ 179 $ 237 $ 241 _______________________________________________________________________________ (1) See Note 12—Financing Agreements for additional information. (2) Interest on tax liabilities for the year ended December 31, 2020 includes a reduction in interest accrued on the reserve for unrecognized tax benefits. |
Other Operating-Net
Other Operating-Net | 12 Months Ended |
Dec. 31, 2020 | |
Other Operating-Net | |
Other Operating-Net | Other Operating—Net Details of other operating—net are as follows: Year ended December 31, 2020 2019 2018 (in millions) Insurance proceeds (1) $ (37) $ (37) $ (10) Loss (gain) on disposal of property, plant and equipment—net (2) 15 (40) 6 Loss (gain) on foreign currency transactions (3) 5 (1) (5) Loss on embedded derivative (4) 3 4 1 Other (3) 1 (19) Other operating—net $ (17) $ (73) $ (27) ___________________________________________________________________________ (1) Insurance proceeds in 2020 and 2019 relate to property and business interruption insurance claims at one of our nitrogen complexes. (2) Loss (gain) on disposal of property, plant and equipment—net in 2020 includes $9 million of engineering costs written off upon the cancellation of a project at one of our nitrogen complexes. In 2019, includes the gain on sale of our Pine Bend facility of $45 million. See Note 6—Property, Plant and Equipment—Net for additional information on the sale of our Pine Bend facility. (3) Loss (gain) on foreign currency transactions consists of foreign currency exchange rate impacts on foreign currency denominated transactions, including the impact of changes in foreign currency exchange rates on intercompany loans that were not permanently invested. (4) Loss on embedded derivative consists of unrealized and realized losses related to a provision of our strategic venture with CHS. See Note 9—Fair Value Measurements for additional information. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We may use derivative financial instruments to reduce our exposure to changes in prices for natural gas that will be purchased in the future. Natural gas is the largest and most volatile component of our manufacturing cost for nitrogen-based products. From time to time, we may also use derivative financial instruments to reduce our exposure to changes in foreign currency exchange rates. The derivatives that we may use to reduce our exposure to changes in prices for natural gas are primarily natural gas fixed price swaps, basis swaps and options traded in the OTC markets. These natural gas derivatives settle using primarily a NYMEX futures price index, which represents the basis for fair value at any given time. We enter into natural gas derivative contracts with respect to natural gas to be consumed by us in the future, and settlements of those derivative contracts are scheduled to coincide with our anticipated purchases of natural gas used to manufacture nitrogen products during those future periods. We use natural gas derivatives as an economic hedge of natural gas price risk, but without the application of hedge accounting. As a result, changes in fair value of these contracts are recognized in earnings. As of December 31, 2020, we had natural gas fixed price swaps and basis swaps covering certain periods through March 2022. As of December 31, 2020, our open natural gas derivative contracts consisted of natural gas fixed price swaps and basis swaps for 34.1 million MMBtus. As of December 31, 2019, we had open natural gas derivative contracts for 41.1 million MMBtus of natural gas fixed price swaps, basis swaps and options. For the year ended December 31, 2020, we used derivatives to cover approximately 19% of our natural gas consumption. The effect of derivatives in our consolidated statements of operations is shown in the table below. Gain (loss) recognized in income Year ended December 31, Location 2020 2019 2018 (in millions) Natural gas derivatives Unrealized net gains (losses) Cost of sales $ 6 $ (14) $ 13 Realized net (losses) gains Cost of sales (13) 4 (2) Net derivative (losses) gains $ (7) $ (10) $ 11 The fair values of derivatives on our consolidated balance sheets are shown below. As of December 31, 2020 and 2019, none of our derivative instruments were designated as hedging instruments. See Note 9—Fair Value Measurements for additional information on derivative fair values. Asset Derivatives Liability Derivatives Balance Sheet December 31, Balance Sheet December 31, 2020 2019 2020 2019 (in millions) (in millions) Natural gas derivatives Other current assets $ 1 $ — Other current liabilities $ (7) $ (12) The counterparties to our derivative contracts are multinational commercial banks, major financial institutions and large energy companies. Our derivative contracts are executed with several counterparties 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 us and our counterparties to net, into a single net payable or receivable, ordinary settlement obligations arising between us 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. • Setoff rights are provided by certain of our 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 us and our counterparties 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 our ISDA agreements contain credit-risk-related contingent features such as cross default provisions. In the event of certain defaults or termination events, our counterparties may request early termination and net settlement of certain derivative trades or, under certain ISDA agreements, may require us to collateralize derivatives in a net liability position. The Revolving Credit Agreement, at any time when it is secured, provides a cross collateral feature for those of our derivatives that are with counterparties that are party to, or affiliates of parties to, the Revolving Credit Agreement so that no separate collateral would be required for those counterparties in connection with such derivatives. In the event the Revolving Credit Agreement becomes unsecured, separate collateral could be required in connection with such derivatives. As of December 31, 2020 and 2019, the aggregate fair value of the derivative instruments with credit-risk-related contingent features in net liability positions was $6 million and $12 million, respectively, which also approximates the fair value of the maximum amount of additional collateral that may need to be posted or assets that may be needed to settle the obligations if the credit-risk-related contingent features were triggered at the reporting dates. As of December 31, 2020 and 2019, we had no cash collateral on deposit with counterparties for derivative contracts. The credit support documents executed in connection with certain of our ISDA agreements generally provide us and our counterparties the right to set off collateral against amounts owing under the ISDA agreements upon the occurrence of a default or a specified termination event. The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of December 31, 2020 and 2019: Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial Cash collateral received (pledged) Net (in millions) December 31, 2020 Total derivative assets $ 1 $ — $ — $ 1 Total derivative liabilities (7) — — (7) Net derivative liabilities $ (6) $ — $ — $ (6) December 31, 2019 Total derivative assets $ — $ — $ — $ — Total derivative liabilities (12) — — (12) Net derivative liabilities $ (12) $ — $ — $ (12) _______________________________________________________________________________ (1) We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, the gross amounts recognized and net amounts presented are the same. We do not believe the contractually allowed netting, close-out netting or setoff of amounts owed to, or due from, the counterparties to our ISDA agreements would have a material effect on our financial position. |
Supplemental Balance Sheet Data
Supplemental Balance Sheet Data | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Data | Supplemental Balance Sheet Data Accounts Receivable — Net Accounts receivable—net consist of the following: December 31, 2020 2019 (in millions) Trade $ 256 $ 229 Other 9 13 Accounts receivable—net $ 265 $ 242 Inventories Inventories consist of the following: December 31, 2020 2019 (in millions) Finished goods $ 246 $ 311 Raw materials, spare parts and supplies 41 40 Total inventories $ 287 $ 351 Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: December 31, 2020 2019 (in millions) Accounts payable $ 85 $ 78 Accrued natural gas costs 106 88 Payroll and employee-related costs 68 81 Accrued interest 32 32 Other 133 158 Total accounts payable and accrued expenses $ 424 $ 437 Payroll and employee-related costs include accrued salaries and wages, vacation, benefits, incentive plans and payroll taxes. Accrued interest includes interest payable on our outstanding senior notes. See Note 12—Financing Agreements and Note 13—Interest Expense for additional information. Other includes accrued utilities, property and other taxes, sales incentives and other credits, accrued litigation settlement costs, accrued maintenance and professional services. Other Current Liabilities As of December 31, 2020, other current liabilities of $15 million primarily includes $7 million of unrealized loss on natural gas derivatives and $5 million representing the current portion of the unrealized loss on the embedded derivative liability related to our strategic venture with CHS. As of December 31, 2019, other current liabilities of $18 million primarily includes $12 million of unrealized loss on natural gas derivatives and $5 million representing the current portion of the unrealized loss on the embedded derivative liability related to our strategic venture with CHS. See Note 9—Fair Value Measurements, Note 15—Derivative Financial Instruments and Note 17—Noncontrolling Interests for additional information. Other Liabilities Other liabilities consist of the following: December 31, 2020 2019 (in millions) Benefit plans and deferred compensation $ 256 $ 298 Tax-related liabilities 155 147 Unrealized loss on embedded derivative 13 15 Other 20 14 Other liabilities $ 444 $ 474 Benefit plans and deferred compensation include liabilities for pensions, retiree medical benefits, and the noncurrent portion of incentive plans. See Note 11—Pension and Other Postretirement Benefits for additional information. |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interests A reconciliation of the beginning and ending balances of noncontrolling interests and distributions payable to the noncontrolling interests on our consolidated balance sheets is provided below. Year ended December 31, 2020 2019 2018 CFN CFN CFN TNCLP Total (in millions) Noncontrolling interests: Balance as of January 1 $ 2,740 $ 2,773 $ 2,772 $ 333 $ 3,105 Earnings attributable to noncontrolling interests 115 153 130 8 138 Declaration of distributions payable (174) (186) (129) (10) (139) Purchase of TNCLP Public Units — — — (331) (331) Balance as of December 31 $ 2,681 $ 2,740 $ 2,773 $ — $ 2,773 Distributions payable to noncontrolling interests: Balance as of January 1 $ — $ — $ — $ — $ — Declaration of distributions payable 174 186 129 10 139 Distributions to noncontrolling interests (174) (186) (129) (10) (139) Balance as of December 31 $ — $ — $ — $ — $ — CF Industries Nitrogen, LLC (CFN) We have a strategic venture with CHS under which CHS owns an equity interest in CFN, a subsidiary of CF Holdings, which represents approximately 11% of the membership interests of CFN. We own the remaining membership interests. Under the terms of CFN’s limited liability company agreement, each member’s interest will reflect, over time, the impact of the profitability of CFN, any member contributions made to CFN and withdrawals and distributions received from CFN. For financial reporting purposes, the assets, liabilities and earnings of the strategic venture are consolidated into our financial statements. CHS’ interest in the strategic venture is recorded in noncontrolling interests in our consolidated financial statements. CHS also receives deliveries pursuant to a supply agreement under which CHS has the right to purchase annually from CFN up to approximately 1.1 million tons of granular urea and 580,000 tons of UAN at market prices. As a result of its equity interest in CFN, CHS is entitled to semi-annual cash distributions from CFN. We are also entitled to semi-annual cash distributions from CFN. The amounts of distributions from CFN to us and CHS are based generally on the profitability of CFN and determined based on the volume of granular urea and UAN sold by CFN to us and CHS pursuant to supply agreements, less a formula driven amount based primarily on the cost of natural gas used to produce the granular urea and UAN, and adjusted for the allocation of items such as operational efficiencies and overhead amounts. Additionally, under the terms of the strategic venture, we recognized an embedded derivative related to our credit rating. See Note 9—Fair Value Measurements for additional information. On January 31, 2021, the CFN Board of Managers approved semi-annual distribution payments for the distribution period ended December 31, 2020 in accordance with CFN’s limited liability company agreement. On February 1, 2021, CFN distributed $64 million to CHS for the distribution period ended December 31, 2020. Terra Nitrogen Company, L.P. (TNCLP) On February 7, 2018, we announced that, in accordance with the terms of TNCLP’s First Amended and Restated Agreement of Limited Partnership (as amended by Amendment No. 1 to the First Amended and Restated Agreement of Limited Partnership, the TNCLP Agreement of Limited Partnership), Terra Nitrogen GP Inc. (TNGP), the sole general partner of TNCLP and an indirect wholly owned subsidiary of CF Holdings, elected to exercise its right to purchase all of the 4,612,562 publicly traded common units of TNCLP (the TNCLP Public Units). On April 2, 2018, TNGP completed its purchase of the TNCLP Public Units (the Purchase) for an aggregate cash purchase price of $388 million, at which time we recognized a reduction in paid-in capital of $62 million; a deferred tax liability of $5 million; and the removal of the TNCLP noncontrolling interests, as shown in the table above. Upon completion of the Purchase, CF Holdings owned, through its subsidiaries, 100 percent of the general and limited partnership interests of TNCLP. Prior to April 2, 2018, TNCLP was a master limited partnership that owned a nitrogen manufacturing facility in Verdigris, Oklahoma. We owned approximately 75.3% of TNCLP through general and limited partnership interests and outside investors owned the remaining approximately 24.7% of the limited partnership interests. For financial reporting purposes, the assets, liabilities and earnings of the partnership were consolidated into our financial statements. The outside investors’ limited partnership interests in TNCLP were recorded in noncontrolling interests in our consolidated financial statements. The noncontrolling interest represented the noncontrolling unitholders’ interest (prior to the Purchase) in the earnings and equity of TNCLP. Affiliates of CF Industries were required to purchase all of TNCLP’s nitrogen products at market prices as defined in the Amendment to the General and Administrative Services and Product Offtake Agreement, dated September 28, 2010. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock Our Board of Directors (the Board) has authorized certain programs to repurchase shares of our common stock. These programs have generally permitted repurchases to be made from time to time in the open market, through privately-negotiated transactions, through block transactions or otherwise. Our management has determined the manner, timing and amount of repurchases under these programs based on the evaluation of market conditions, stock price and other factors. On August 1, 2018, the Board authorized the repurchase of up to $500 million of CF Holdings common stock through June 30, 2020 (the 2018 Share Repurchase Program). In 2018, we completed the 2018 Share Repurchase Program with the repurchase of 10.9 million shares for $500 million, of which $33 million was accrued and unpaid at December 31, 2018. On February 13, 2019, the Board authorized the repurchase of up to $1 billion of CF Holdings common stock through December 31, 2021 (the 2019 Share Repurchase Program). In 2019, we repurchased approximately 7.6 million shares under the 2019 Share Repurchase Program for $337 million. In 2020, we repurchased approximately 2.6 million shares under the 2019 Share Repurchase Program for $100 million. In 2019, we retired 18.6 million shares of repurchased stock. The retired shares were returned to the status of authorized but unissued shares. As part of the retirements, we reduced our treasury stock, paid-in capital and retained earnings balances for 2019 by $843 million, $110 million and $733 million, respectively. We held no shares in treasury of repurchased stock as of December 31, 2019. In 2020, we retired 2.8 million shares of repurchased stock. The retired shares were returned to the status of authorized but unissued shares. As part of the retirements, we reduced our treasury stock, paid-in capital and retained earnings balances for 2020 by $107 million, $17 million and $90 million, respectively. As of December 31, 2020, we held 102,843 shares in treasury of repurchased stock. Changes in common shares outstanding are as follows: Year ended December 31, 2020 2019 2018 Beginning balance 216,023,826 222,818,495 233,287,089 Exercise of stock options 321,465 629,186 462,647 Issuance of restricted stock (1) 552,362 267,165 68,803 Purchase of treasury shares (2) (2,942,795) (7,691,020) (11,000,044) Ending balance 213,954,858 216,023,826 222,818,495 _______________________________________________________________________________ (1) Includes shares issued from treasury. (2) Includes shares withheld to pay employee tax obligations upon the vesting of restricted stock or the exercise of stock options. Preferred Stock CF Holdings is authorized to issue 50 million shares of $0.01 par value preferred stock. Our Second Amended and Restated Certificate of Incorporation, as amended, authorizes the Board, without any further stockholder action or approval, to issue these shares in one or more classes or series, and (except in the case of our Series A Junior Participating Preferred Stock, 500,000 shares of which are authorized and the terms of which were specified in the original certificate of incorporation of CF Holdings) to fix the rights, preferences and privileges of the shares of each wholly unissued class or series and any of its qualifications, limitations or restrictions. The Series A Junior Participating Preferred Stock had been established in CF Holdings’ original certificate of incorporation in connection with our former stockholder rights plan that expired in 2015. No shares of preferred stock have been issued. Accumulated Other Comprehensive Loss Changes to accumulated other comprehensive loss and the impact on other comprehensive income (loss) are as follows: Foreign Unrealized Unrealized Defined Accumulated (in millions) Balance as of December 31, 2017 $ (145) $ 1 $ 4 $ (123) $ (263) Adoption of ASU 2016-01 (1) — (1) — — (1) Adoption of ASU 2018-02 (2) — — 1 (11) (10) Gain arising during the period — — — 3 3 Reclassification to earnings (3) — — — 2 2 Effect of exchange rate changes and deferred taxes (105) — — 3 (102) Balance as of December 31, 2018 (250) — 5 (126) (371) Loss arising during the period — — — (62) (62) Reclassification to earnings (3) — — — (2) (2) Effect of exchange rate changes and deferred taxes 62 — — 7 69 Balance as of December 31, 2019 (188) — 5 (183) (366) Gain arising during the period — — — 1 1 Reclassification to earnings (3) — — (1) 6 5 Effect of exchange rate changes and deferred taxes 44 — — (4) 40 Balance as of December 31, 2020 $ (144) $ — $ 4 $ (180) $ (320) _______________________________________________________________________________ (1) On January 1, 2018, we adopted ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which changes the income statement impact of equity investments held by an entity. The amendments require the unrealized gains or losses of equity instruments measured at fair value to be recognized in net earnings. Our adoption of this ASU resulted in an increase to opening retained earnings of $1 million representing the cumulative effect of unrealized gains from equity securities from accumulated other comprehensive loss. (2) In the fourth quarter of 2018, we adopted ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allowed a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. As a result of our adoption of this ASU, we reclassified $10 million of stranded tax effects previously recognized in accumulated other comprehensive loss to retained earnings during the fourth quarter of 2018. (3) Reclassifications out of accumulated other comprehensive loss to the consolidated statements of operations were not material. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-based Compensation 2014 Equity and Incentive Plan On May 14, 2014, our shareholders approved the CF Industries Holdings, Inc. 2014 Equity and Incentive Plan (the 2014 Equity and Incentive Plan) which replaced the CF Industries Holdings, Inc. 2009 Equity and Incentive Plan. Under the 2014 Equity and Incentive Plan, we may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards (payable in cash or stock) and other stock-based awards to our officers, employees, consultants and independent contractors (including non-employee directors). The purpose of the 2014 Equity and Incentive Plan is to provide an incentive that is aligned with the interests of our shareholders. Share Reserve and Individual Award Limits The maximum number of shares reserved for the grant of awards under the 2014 Equity and Incentive Plan is the sum of (i) 13.9 million and (ii) the number of shares subject to outstanding awards under our predecessor plans to the extent such awards terminate or expire without delivery of shares. For purposes of determining the number of shares of stock available for grant under the 2014 Equity and Incentive Plan, each option or stock appreciation right is counted against the reserve as one share. Each share of stock granted, other than an option or a stock appreciation right, is counted against the reserve as 1.61 shares. If any outstanding award expires or is settled in cash, any unissued shares subject to the award are again available for grant under the 2014 Equity and Incentive Plan. Shares tendered in payment of the exercise price of an option and shares withheld by the Company or otherwise received by the Company to satisfy tax withholding obligations are not available for future grant under the 2014 Equity and Incentive Plan. As of December 31, 2020, we had 6.0 million shares available for future awards under the 2014 Equity and Incentive Plan. The 2014 Equity and Incentive Plan provides that no more than 5.0 million shares underlying awards of stock options and stock appreciation rights may be granted to a participant in any one calendar year. Restricted Stock Awards, Restricted Stock Units and Performance Restricted Stock Units The fair value of a restricted stock award (RSA) or a restricted stock unit (RSU) is equal to the number of shares subject to the award multiplied by the closing market price of our common stock on the date of grant. We estimated the fair value of each performance restricted stock unit (PSU) on the date of grant using a Monte Carlo simulation. Generally, RSUs vest in three equal annual installments following the date of grant. PSUs are granted to key employees and generally vest three years from the date of grant subject to the attainment of applicable performance goals during the performance period. The RSAs awarded to non-management members of the Board vest the earlier of one year from the date of the grant or the date of the next annual stockholder meeting. During the vesting period, the holders of the RSAs are entitled to dividends and voting rights. During the vesting period, the holders of the RSUs are paid dividend equivalents in cash to the extent we pay cash dividends. PSUs accrue dividend equivalents to the extent we pay cash dividends on our common stock during the performance and vesting periods. Upon vesting of the PSUs, holders are paid the cash equivalent of the dividends paid during the performance and vesting periods based on the shares of common stock, if any, delivered in settlement of PSUs. Holders of RSUs and PSUs are not entitled to voting rights unless and until the awards have vested. A summary of restricted stock activity during the year ended December 31, 2020 is presented below. Restricted Stock Awards Restricted Stock Units Performance Restricted Stock Units Shares Weighted- Shares Weighted- Shares Weighted- Outstanding as of December 31, 2019 36,567 $ 41.84 693,960 $ 40.14 304,834 $ 44.42 Granted 50,895 27.51 316,154 45.23 210,869 47.93 Restrictions lapsed (vested) (1) (36,567) 41.84 (372,855) 38.36 (58,460) 48.68 Forfeited — — (23,165) 44.13 (11,745) 45.97 Outstanding as of December 31, 2020 50,895 27.51 614,094 43.70 445,498 45.72 _______________________________________________________________________________ (1) For performance restricted stock units, the shares represent the performance restricted stock units granted in 2017, for which the three-year performance period ended December 31, 2019. The 2020, 2019 and 2018 weighted-average grant date fair value for RSAs was $27.51, $41.84, and $40.40, for RSUs was $45.23, $41.94, and $43.09, and for PSUs was $47.93, $43.09, and $44.59, respectively. The actual tax benefit realized from restricted stock vested in each of the years ended December 31, 2020, 2019 and 2018 was $5 million, $3 million and $1 million, respectively. The fair value of restricted stock vested was $22 million, $11 million and $3 million for the years ended December 31, 2020, 2019 and 2018, respectively. Stock Options Under the 2014 Equity and Incentive Plan and our predecessor plans, we have granted to plan participants nonqualified stock options to purchase shares of our common stock. The exercise price of these options was equal to the market price of our common stock on the date of grant. The contractual life of each option was ten years and generally one-third of the options vested on each of the first three anniversaries of the date of grant. No stock option awards have been granted to plan participants since 2017. A summary of stock option activity during the year ended December 31, 2020 is presented below: Shares Weighted- Outstanding as of December 31, 2019 5,059,892 $ 39.88 Exercised (321,465) 25.95 Forfeited (6,527) 30.95 Expired (162,859) 52.86 Outstanding as of December 31, 2020 4,569,041 40.41 Exercisable as of December 31, 2020 4,569,041 40.41 Weighted- Aggregate (1) Outstanding as of December 31, 2020 4.2 $ 15 Exercisable as of December 31, 2020 4.2 $ 15 _____________________________________________________________________________ (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $38.71 as of December 31, 2020, which would have been received by the option holders had all option holders exercised their options as of that date. Selected amounts pertaining to stock option exercises are as follows: 2020 2019 2018 (in millions) Cash received from stock option exercises $ 8 $ 18 $ 12 Actual tax benefit realized from stock option exercises $ 1 $ 3 $ 2 Pre-tax intrinsic value of stock options exercised $ 4 $ 12 $ 10 Compensation Cost Compensation cost is recorded primarily in selling, general and administrative expenses. The following table summarizes stock-based compensation costs and related income tax benefits: Year ended December 31, 2020 2019 2018 (in millions) Stock-based compensation expense $ 26 $ 28 $ 21 Income tax benefit (6) (6) (4) Stock-based compensation expense, net of income taxes $ 20 $ 22 $ 17 As of December 31, 2020, pre-tax unrecognized compensation cost was $14 million for RSAs and RSUs, which will be recognized over a weighted-average period of 1.7 years, and $7 million for PSUs, which will be recognized over a weighted-average period of 1.3 years. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies West Fertilizer Co. On April 17, 2013, there was a fire and explosion at the West Fertilizer Co. fertilizer storage and distribution facility in West, Texas. According to published reports, 15 people were killed and approximately 200 people were injured in the incident, and the fire and explosion damaged or destroyed a number of homes and buildings around the facility. Various subsidiaries of CF Industries Holdings, Inc. (the CF Entities) were named as defendants along with other companies in lawsuits filed in 2013, 2014 and 2015 in the District Court of McLennan County, Texas by the City of West, individual residents of the County and other parties seeking recovery for damages allegedly sustained as a result of the explosion. The cases were consolidated for discovery and pretrial proceedings in the District Court of McLennan County under the caption “In re: West Explosion Cases.” The two-year statute of limitations expired on April 17, 2015. As of that date, over 400 plaintiffs had filed claims, including at least 9 entities, 325 individuals, and 80 insurance companies. Plaintiffs allege various theories of negligence, strict liability, and breach of warranty under Texas law. Although we do not own or operate the facility or directly sell our products to West Fertilizer Co., products that the CF Entities manufactured and sold to others were delivered to the facility and may have been stored at the West facility at the time of the incident. The Court granted in part and denied in part the CF Entities’ Motions for Summary Judgment in August 2015. Over three hundred cases have been resolved pursuant to confidential settlements that have been or we expect will be fully funded by insurance. The remaining cases are in various stages of discovery and pre-trial proceedings. The next group of cases is expected to be set for trial after the Court resumes scheduling civil jury trials currently on hold because of the coronavirus disease 2019 (COVID-19) pandemic. We believe we have strong legal and factual defenses and intend to continue defending the CF Entities vigorously in the pending lawsuits. The Company cannot provide a range of reasonably possible loss due to the uncertain nature of this litigation, including uncertainties around the potential allocation of responsibility by a jury to other defendants or responsible third parties. The recognition of a potential loss in the future in the West Fertilizer Co. litigation could negatively affect our results in the period of recognition. However, based upon currently available information, including available insurance coverage, we do not believe that this litigation will have a material adverse effect on our consolidated financial position, results of operations or cash flows. Other Litigation From time to time, we are subject to ordinary, routine legal proceedings related to the usual conduct of our business, including proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of our various plants and facilities. Based on the information available as of the date of this filing, we believe that the ultimate outcome of these routine matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. Environmental From time to time, we receive notices from governmental agencies or third parties alleging that we are a potentially responsible party at certain cleanup sites under CERCLA or other environmental cleanup laws. In 2011, we received a notice from the Idaho Department of Environmental Quality (IDEQ) that alleged that we were a potentially responsible party for the cleanup of a former phosphate mine site we owned in the late 1950s and early 1960s located in Georgetown Canyon, Idaho. The current owner of the property and a former mining contractor received similar notices for the site. In 2014, we and the current property owner entered into a Consent Order with IDEQ and the U.S. Forest Service to conduct a remedial investigation and feasibility study of the site. In 2015, we and several other parties received a notice that the U.S. Department of the Interior and other trustees intend to undertake a natural resource damage assessment for 17 former phosphate mines in southeast Idaho, one of which is the former Georgetown Canyon mine. Because the former mine site is still in the remedial investigation/feasibility study stage, we are not able to estimate at this time our potential liability, if any, with respect to the cleanup of the site or a possible claim for natural resource damages. However, based on the results of the site investigation conducted to date, we do not expect the remedial or financial obligations to which we may be subject involving this or other cleanup sites will have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Segment Disclosures
Segment Disclosures | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Disclosures | Segment Disclosures Our reportable segments consist of ammonia, granular urea, UAN, AN, and Other. These segments are differentiated by products. Our management uses gross margin to evaluate segment performance and allocate resources. Total other operating costs and expenses (consisting of selling, general and administrative expenses and other operating—net) and non-operating expenses (interest and income taxes) are centrally managed and are not included in the measurement of segment profitability reviewed by management. Our assets, with the exception of goodwill, are not monitored by or reported to our chief operating decision maker by segment; therefore, we do not present total assets by segment. Goodwill by segment is presented in Note 7—Goodwill and Other Intangible Assets. Segment data for sales, cost of sales and gross margin for 2020, 2019 and 2018 are presented in the table below. Ammonia Granular Urea (1) UAN (1) AN (1) Other (1) Consolidated (in millions) Year ended December 31, 2020 Net sales $ 1,020 $ 1,248 $ 1,063 $ 455 $ 338 $ 4,124 Cost of sales 850 847 949 390 287 3,323 Gross margin $ 170 $ 401 $ 114 $ 65 $ 51 801 Total other operating costs and expenses 189 Equity in earnings of operating affiliate 11 Operating earnings $ 623 Year ended December 31, 2019 Net sales $ 1,113 $ 1,342 $ 1,270 $ 506 $ 359 $ 4,590 Cost of sales 878 861 981 399 297 3,416 Gross margin $ 235 $ 481 $ 289 $ 107 $ 62 1,174 Total other operating costs and expenses 166 Equity in loss of operating affiliate (5) Operating earnings $ 1,003 Year ended December 31, 2018 Net sales $ 1,028 $ 1,322 $ 1,234 $ 460 $ 385 $ 4,429 Cost of sales 867 889 1,007 414 335 3,512 Gross margin $ 161 $ 433 $ 227 $ 46 $ 50 917 Total other operating costs and expenses 187 Equity in earnings of operating affiliate 36 Operating earnings $ 766 _______________________________________________________________________________ (1) The cost of ammonia that is upgraded into other products is transferred at cost into the upgraded product results. Depreciation and amortization by segment for 2020, 2019 and 2018 is as follows: Ammonia Granular Urea UAN AN Other Corporate Consolidated (in millions) Depreciation and amortization Year ended December 31, 2020 $ 176 $ 270 $ 256 $ 100 $ 68 $ 22 $ 892 Year ended December 31, 2019 167 264 251 88 72 33 875 Year ended December 31, 2018 155 276 270 85 67 35 888 Enterprise-wide data by geographic region is as follows: Year ended December 31, 2020 2019 2018 (in millions) Sales by geographic region (based on destination of shipments): United States $ 3,036 $ 3,387 $ 3,160 Foreign: Canada 397 410 379 North America, excluding U.S. and Canada 54 53 81 United Kingdom 332 413 425 Other foreign 305 327 384 Total foreign 1,088 1,203 1,269 Consolidated $ 4,124 $ 4,590 $ 4,429 December 31, 2020 2019 2018 (in millions) Property, plant and equipment—net by geographic region: United States $ 6,527 $ 6,991 $ 7,426 Foreign: Canada 525 558 544 United Kingdom 580 621 653 Total foreign 1,105 1,179 1,197 Consolidated $ 7,632 $ 8,170 $ 8,623 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following provides additional information relating to cash flow activities: Year ended December 31, 2020 2019 2018 (in millions) Cash paid during the year for Interest—net of interest capitalized $ 184 $ 228 $ 227 Income taxes—net of refunds 111 (41) 7 Supplemental disclosure of noncash investing and financing activities: Change in capitalized expenditures in accounts payable and accrued expenses $ 1 $ (6) $ 2 Change in accrued share repurchases — (33) 33 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement ObligationsAsset 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 AROs at our nitrogen manufacturing complexes and at our distribution and storage facilities that are conditional upon cessation of operations. These AROs include certain decommissioning activities as well as the removal and disposal of certain chemicals, waste materials, structures, equipment, vessels, piping and storage tanks. Also included are reclamation of land and the closure of certain effluent ponds and/or waste storage areas. The most recent estimate of the aggregate cost of these AROs expressed in 2020 dollars is approximately $115 million. We have not recorded a liability for these conditional AROs as of December 31, 2020 because we do not believe there is currently a reasonable basis for estimating a date or range of dates of cessation of operations at our nitrogen manufacturing facilities or our distribution and storage facilities, which is necessary in order to estimate fair value. In reaching this conclusion, we considered the historical performance of each complex or 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 our nitrogen manufacturing facilities and our distribution and storage facilities indefinitely. We also considered the possibility of changes in technology, risk of obsolescence, and availability of raw materials in arriving at our conclusion. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for certain property and equipment under various noncancelable agreements, the most significant of which are rail car leases and barge tow charters for the distribution of our products. The rail car leases currently have minimum terms ranging from one one one The components of lease costs were as follows: Year ended December 31, 2020 2019 (in millions) Operating lease cost $ 107 $ 95 Short-term lease cost 17 26 Variable lease cost 6 4 Total lease cost $ 130 $ 125 Total rent expense for cancelable and noncancelable operating leases was $121 million for 2018, which was recorded under the previous lease accounting standard, ASC 840. Supplemental cash flow information related to leases was as follows: Year ended December 31, 2020 2019 (in millions) Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 105 $ 93 Right-of-use (ROU) assets obtained in exchange for operating lease obligations 80 73 Supplemental balance sheet information related to leases was as follows: December 31, 2020 2019 (in millions) Operating lease ROU assets $ 259 $ 280 Current operating lease liabilities $ 88 $ 90 Operating lease liabilities 174 193 Total operating lease liabilities $ 262 $ 283 December 31, 2020 2019 Operating leases Weighted-average remaining lease term 4 years 5 years Weighted-average discount rate (1) 4.7 % 4.9 % _______________________________________________________________________________ (1) Upon adoption of the new lease accounting standard, discount rates used for existing leases were established at January 1, 2019. The following table reconciles the undiscounted cash flows for our operating leases to the operating lease liabilities recorded on our consolidated balance sheet as of December 31, 2020. Operating (in millions) 2021 $ 90 2022 68 2023 47 2024 39 2025 22 Thereafter 24 Total lease payments 290 Less: imputed interest (28) Present value of lease liabilities 262 Less: Current operating lease liabilities (88) Operating lease liabilities $ 174 As of December 31, 2020, we have entered into additional leases that had not yet commenced and therefore have been excluded from total operating lease liabilities as of that date. These leases will commence in fiscal year 2021 with future minimum payments of $6 million and lease terms of five years. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 25. Subsequent Events On February 17, 2021, we announced that our wholly owned subsidiary CF Industries, Inc. elected to redeem in full the entire outstanding $250 million principal amount of the 2021 Notes on March 20, 2021, in accordance with the optional redemption provisions provided in the indenture governing the 2021 Notes. Based on market interest rates on February 12, 2021, we estimate that the total amount for the redemption of the 2021 Notes will be approximately $258 million, including accrued interest. See Note 12—Financing Agreements for additional information. In February 2021, the central portion of the United States experienced extreme and unprecedented cold weather. Certain natural gas suppliers declared force majeure events due to natural gas well freeze offs or frozen equipment. This occurred at the same time as large increases in natural gas demand were occurring due to the cold temperatures. Due to these unprecedented factors, several states declared a state of emergency and natural gas was redirected for residential usage. At certain of our manufacturing locations, we were asked to reduce our natural gas consumption and therefore these plants either operated at reduced rates or temporarily suspended operations. We returned excess natural gas to our suppliers and received prevailing market prices, which were in excess of our cost. During this period of time, we have experienced lower production, but have procured product in order to meet customer obligations. Higher maintenance and repair activity may be necessary as the plants are restarted. At the present time, we do not know the net positive or negative impact of these events on our operations; however, we do not expect it to result in a material impact to our business. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation and Noncontrolling Interest | Consolidation and Noncontrolling Interests The consolidated financial statements of CF Holdings include the accounts of CF Industries and all majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. In 2018, we announced that Terra Nitrogen GP Inc. (TNGP), the sole general partner of Terra Nitrogen Company, L.P. (TNCLP) and an indirect wholly owned subsidiary of CF Holdings, elected to exercise its right to purchase all of the 4,612,562 publicly traded common units of TNCLP (the TNCLP Public Units). On April 2, 2018, TNGP completed its purchase of the TNCLP Public Units (the Purchase) for an aggregate cash purchase price of $388 million. Upon completion of the Purchase, we owned, through our subsidiaries, 100% of the general and limited partnership interests of TNCLP. Prior to the purchase of the TNCLP Public Units, we owned approximately 75.3% of TNCLP through general and limited partnership interests and outside investors owned the remaining approximately 24.7% of the limited partnership, and we consolidated TNCLP into our financial statements. The outside investors’ limited partnership interests in the partnership were included in noncontrolling interests in our consolidated financial statements prior to our purchase of the TNCLP Public Units. We own approximately 89% of the membership interests in CFN and consolidate CFN in our financial statements. CHS’ minority equity interest in CFN is included in noncontrolling interests in our consolidated financial statements. See Note 17—Noncontrolling Interests for additional information. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of 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 evaluation of potential impairments of property, investments, identifiable intangible assets and goodwill, income taxes, allowances for doubtful accounts receivable, the determination of the benefit obligation and annual expense of defined benefit pension and other postretirement plans and the valuation of stock-based compensation awards granted to employees. |
Revenue Recognition | Revenue Recognition We follow a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligation(s), and (5) recognition of revenue when (or as) each performance obligation is satisfied. Control of our products transfers to our customers when the customer is able to direct the use of, and obtain substantially all of the benefits from, our products, which occurs at the later of when title or risk of loss transfers to the customer. Control generally transfers to the customer at a point in time upon loading of our product onto transportation equipment or delivery to a customer destination. Revenue from forward sales programs is recognized on the same basis as other sales regardless of when the customer advances are received. In situations where we have agreed to arrange delivery of the product to the customer’s intended destination and control of the product transfers upon loading of our product, we have elected to not identify delivery of the product as a performance obligation. We account for freight income associated with the delivery of these products as freight revenue, since this activity fulfills our obligation to transfer the product to the customer. Shipping and handling costs incurred by us are included in cost of sales. We offer cash incentives to certain customers based on the volume of their purchases over a certain period. Customer incentives are reported as a reduction in net sales. |
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. |
Investments | Investments Short-term investments and noncurrent investments are accounted for primarily as available-for-sale securities reported at fair value. Changes in the fair value of available-for-sale debt securities are recognized in other comprehensive income. Changes in the fair value of available-for-sale equity securities are recognized through earnings. The carrying values of short-term investments approximate fair values because of the short maturities and the highly liquid nature of these investments. |
Inventories | InventoriesInventories are reported at the lower of cost and net realizable value with cost determined on a first-in, first-out and average cost basis. Inventory includes the cost of materials, production labor and production overhead. Inventory at warehouses and terminals also includes distribution costs to move inventory to the distribution facilities. Net realizable value is reviewed at least quarterly. Fixed production costs related to idle capacity are not included in the cost of inventory but are charged directly to cost of sales in the period incurred |
Investments in and Advances to Unconsolidated Affiliates | Investment in Unconsolidated Affiliate The equity method of accounting is used for our investment in an affiliate that we do not consolidate, but over which we have the ability to exercise significant influence. Our equity method investment for which the results are included in operating earnings consists of our 50% ownership interest in PLNL, which operates an ammonia production facility in the Republic of Trinidad and Tobago. Our share of the net earnings from this investment is reported as an element of earnings from operations because PLNL’s operations provide additional production and are integrated with our supply chain and sales activities in the ammonia segment. See Note 8—Equity Method Investment for additional information. |
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 and are recorded over the estimated useful life of the property, plant and equipment. Useful lives are as follows: Years Mobile and office equipment 3 to 10 Production facilities and related assets 2 to 30 Land improvements 10 to 30 Buildings 10 to 40 We periodically review the useful lives assigned to our property, plant and equipment and we 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 facilities during a full plant shutdown 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 in property, plant and equipment 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 five 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. See Note 6—Property, Plant and Equipment—Net for additional information. |
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 would be recognized. The impairment loss is measured as the amount by which the carrying value exceeds the fair value of the asset. |
Goodwill and Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to the assets acquired and liabilities assumed. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if certain impairment conditions arise. We perform our annual goodwill impairment review in the fourth quarter of each year at the reporting unit level. Our evaluation can begin with a qualitative assessment of the factors that could impact the significant inputs used to estimate fair value. If after performing the qualitative assessment, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then no further analysis is necessary. However, if the results of the qualitative test are unclear, we perform a quantitative test, which involves comparing the fair value of a reporting unit with its carrying amount, including goodwill. We use an income-based valuation method, determining the present value of future cash flows, to estimate the fair value of a reporting unit. If the fair value of a reporting unit exceeds its positive carrying amount, goodwill of the reporting unit is considered not impaired, and no further analysis is necessary. If the fair value of the reporting unit is less than its carrying amount, goodwill impairment would be recognized equal to the amount of the carrying value in excess of the reporting unit’s fair value, limited to the total amount of goodwill allocated to the reporting unit. |
Leases | Leases Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate the present value represents our secured incremental borrowing rate and is calculated based on the treasury yield curve commensurate with the term of each lease, and a spread representative of our secured borrowing costs. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases may be classified as either operating leases or finance leases. We have made an accounting policy election to not include leases with an initial term of 12 months or less on the balance sheet. For finance leases, if any, ROU assets are amortized over the lease term on a straight-line basis and interest expense is recognized using the effective interest method and based on the lease liability at period end. For operating 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. For our rail car leases, barge tow charters, and terminal and warehouse storage agreements, we have made an accounting policy election to not separate lease and non-lease components, such as operating costs and maintenance, due to sufficient data not being available. As a result, the non-lease components are included in the ROU assets and lease liabilities on our consolidated balance sheet. See Note 24—Leases for additional information. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are projected to be recovered or settled. Realization of deferred tax assets is dependent on our ability to generate sufficient taxable income of an appropriate character in future periods. A valuation allowance is established if it is determined to be more likely than not that a deferred tax asset will not be realized. Significant judgment is applied in evaluating the need for and magnitude of appropriate valuation allowances against deferred tax assets. We record our tax expense for Global Intangible Low-Taxed Income (GILTI) as an expense in the period in which incurred and as such do not record a deferred tax liability for taxes that may be due in future periods. Interest and penalties related to unrecognized tax benefits are reported as interest expense and income tax expense, respectively. See Note 10—Income Taxes for additional information. |
Customer Advances | Customer AdvancesCustomer advances represent cash received from customers following acceptance of orders under our forward sales programs. Under such advances, the customer prepays a portion of the value of the sales contract prior to obtaining control of the product, thereby reducing or eliminating accounts receivable from customers. Revenue is recognized when the customer obtains control of the product. |
Derivative Financial Instruments | Derivative Financial Instruments Natural gas is the principal raw material used to produce nitrogen-based products. We manage the risk of changes in natural gas prices primarily through the use of derivative financial instruments. The derivative instruments that we may use are primarily natural gas fixed price swaps, basis swaps and options traded in the over-the-counter (OTC) markets. The derivatives reference primarily a NYMEX futures price index, which represent the basis for fair value at any given time. These 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. Derivative financial instruments are accounted for at fair value and recognized as current or noncurrent assets and liabilities on our consolidated balance sheets. We use natural gas derivatives as an economic hedge of natural gas price risk, but without the application of hedge accounting. As a result, changes in fair value of these contracts are recognized in earnings. The fair values of derivative instruments and any related cash collateral are reported on a gross basis rather than on a net basis. Cash flows related to natural gas derivatives are reported as operating activities. See Note 15—Derivative Financial Instruments for additional information. |
Debt Issuance Costs | Debt Issuance Costs Costs associated with the issuance of debt are recorded on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Costs associated with entering into revolving credit facilities are recorded as an asset in noncurrent assets. All debt issuance costs are amortized over the term of the related debt using the effective interest rate method. Debt issuance discounts are netted against the related debt and are amortized over the term of the debt using the effective interest method. See Note 12—Financing Agreements for additional information. |
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 an obligation has been incurred and the costs can be reasonably estimated. Environmental liabilities are not discounted. |
Emission credits | Emission Credits Emission credits may be generated by or granted to the Company through emissions trading systems or other regulatory programs. From time to time, we may also purchase emission credits. We have elected to account for emission credits using the intangible asset model. Under this model, emission credits that are purchased are measured at their cost basis and tested for impairment annually. We do not recognize any internally generated emission credits under the intangible asset model until a monetary transaction occurs, such as a sale of the emission credits. If a facility exceeds regulatory emissions allowance levels and offsetting credits are not held by us, our obligation is recognized as an operating expense and a liability at the fair value of the emissions allowance deficit. |
Stock-based Compensation | Stock-based Compensation We grant stock-based compensation awards under our equity and incentive plans. The awards that have been granted to date are nonqualified stock options, restricted stock awards, restricted stock units and performance restricted stock units. The cost of employee services received in exchange for the awards is measured based on the fair value of the award on the grant date and is recognized as expense on a straight-line basis over the period during which the employee is required to provide the services. We have elected to recognize equity award forfeitures as they occur in determining the compensation cost to be recognized in each period . See Note 19—Stock-based Compensation for additional information. |
Treasury Stock | Treasury Stock We periodically retire treasury shares acquired through repurchases of our common stock and return those shares to the status of authorized but unissued. We account for treasury stock transactions under the cost method. For each reacquisition of common stock, the number of shares and the acquisition price for those shares is added to the treasury stock count and total value. When treasury shares are retired, we allocate the excess of the repurchase price over the par value of shares acquired to both retained earnings and paid-in capital. The portion allocated to paid-in capital is determined by applying the average paid-in capital per share, and the remaining portion is recorded to retained earnings. |
Litigation | Litigation From time to time, we are subject to ordinary, routine legal proceedings related to the usual conduct of our business. We may also be involved in proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of our various plants 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. Legal fees are recognized as incurred and are not included in accruals for contingencies. 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, 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. |
Foreign Currency Translation | Foreign Currency Translation We translate the financial statements of our foreign subsidiaries with non-U.S. dollar functional currencies using period-end exchange rates for assets and liabilities and weighted-average exchange rates for each period for revenues and expenses. The resulting translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) within stockholders’ equity. Foreign currency-denominated assets and liabilities are remeasured into U.S. dollars at exchange rates existing at the respective balance sheet dates. Gains and losses resulting from these foreign currency transactions are included in other operating—net on our consolidated statements of operations. Gains and losses resulting from intercompany foreign currency transactions that are of a long-term investment nature, if any, are reported in other comprehensive income. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Recently Adopted Pronouncements | New Accounting Standards Recently Adopted Pronouncements On January 1, 2020, we adopted Accounting Standards Update (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. We adopted this ASU prospectively. The adoption of this ASU did not have a material impact on our consolidated financial statements; however, it 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 would be deferred and expensed over the term of the cloud computing arrangement. On January 1, 2019, we adopted 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 24—Leases for additional information. Recently Issued Pronouncement In December 2019, the Financial Accounting Standards Board issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU adds new guidance to simplify accounting for income taxes, changes the accounting for certain income tax transactions and makes minor improvements to the codification. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We do not expect our adoption of this ASU on January 1, 2021 will have a material effect on our consolidated financial statements. |
Revenue Recognition Accounting
Revenue Recognition Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition We follow a five-step model for revenue recognition. The five steps are: (1) identification of the contract(s) with the customer, (2) identification of the performance obligation(s) in the contract(s), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligation(s), and (5) recognition of revenue when (or as) each performance obligation is satisfied. Control of our products transfers to our customers when the customer is able to direct the use of, and obtain substantially all of the benefits from, our products, which occurs at the later of when title or risk of loss transfers to the customer. Control generally transfers to the customer at a point in time upon loading of our product onto transportation equipment or delivery to a customer destination. Revenue from forward sales programs is recognized on the same basis as other sales regardless of when the customer advances are received. In situations where we have agreed to arrange delivery of the product to the customer’s intended destination and control of the product transfers upon loading of our product, we have elected to not identify delivery of the product as a performance obligation. We account for freight income associated with the delivery of these products as freight revenue, since this activity fulfills our obligation to transfer the product to the customer. Shipping and handling costs incurred by us are included in cost of sales. We offer cash incentives to certain customers based on the volume of their purchases over a certain period. Customer incentives are reported as a reduction in net sales. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of depreciable lives | Property, plant and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method and are recorded over the estimated useful life of the property, plant and equipment. Useful lives are as follows: Years Mobile and office equipment 3 to 10 Production facilities and related assets 2 to 30 Land improvements 10 to 30 Buildings 10 to 40 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes our revenue by product and by geography (based on destination of our shipment) for 2020, 2019 and 2018: Ammonia Granular UAN AN Other Total (in millions) Year ended December 31, 2020 North America $ 874 $ 1,183 $ 998 $ 197 $ 235 $ 3,487 Europe and other 146 65 65 258 103 637 Total revenue $ 1,020 $ 1,248 $ 1,063 $ 455 $ 338 $ 4,124 Year ended December 31, 2019 North America $ 948 $ 1,269 $ 1,176 $ 200 $ 256 $ 3,849 Europe and other 165 73 94 306 103 741 Total revenue $ 1,113 $ 1,342 $ 1,270 $ 506 $ 359 $ 4,590 Year ended December 31, 2018 North America $ 883 $ 1,243 $ 1,047 $ 186 $ 261 $ 3,620 Europe and other 145 79 187 274 124 809 Total revenue $ 1,028 $ 1,322 $ 1,234 $ 460 $ 385 $ 4,429 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of net earnings per share | Net earnings per share were computed as follows: Year ended December 31, 2020 2019 2018 (in millions, except per share amounts) Net earnings attributable to common stockholders $ 317 $ 493 $ 290 Basic earnings per common share: Weighted-average common shares outstanding 214.9 220.2 232.6 Net earnings attributable to common stockholders $ 1.48 $ 2.24 $ 1.25 Diluted earnings per common share: Weighted-average common shares outstanding 214.9 220.2 232.6 Dilutive common shares—stock-based awards 0.3 1.4 1.2 Diluted weighted-average shares outstanding 215.2 221.6 233.8 Net earnings attributable to common stockholders $ 1.47 $ 2.23 $ 1.24 |
Property, Plant and Equipment_2
Property, Plant and Equipment-Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |
Components of property, plant and equipment-net | Property, plant and equipment—net consists of the following: December 31, 2020 2019 (in millions) Land $ 68 $ 71 Machinery and equipment 12,539 12,338 Buildings and improvements 895 890 Construction in progress 275 236 Property, plant and equipment (1) 13,777 13,535 Less: Accumulated depreciation and amortization 6,145 5,365 Property, plant and equipment—net $ 7,632 $ 8,170 _______________________________________________________________________________ (1) As of December 31, 2020 and 2019, we had property, plant and equipment that was accrued but unpaid of approximately $43 million and $42 million, respectively. |
Summary of plant turnaround activity | The following is a summary of capitalized plant turnaround costs: Year ended December 31, 2020 2019 2018 (in millions) Net capitalized turnaround costs at beginning of the year $ 246 $ 252 $ 208 Additions 84 102 156 Depreciation (104) (112) (111) Effect of exchange rate changes — 4 (1) Net capitalized turnaround costs at end of the year $ 226 $ 246 $ 252 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table shows the carrying amount of goodwill by reportable segment as of December 31, 2020 and 2019: Ammonia Granular Urea UAN AN Other Total (in millions) Balance as of December 31, 2019 $ 587 $ 828 $ 576 $ 302 $ 72 $ 2,365 Effect of exchange rate changes — — — 8 1 9 Balance as of December 31, 2020 $ 587 $ 828 $ 576 $ 310 $ 73 $ 2,374 |
Schedule of Finite-Lived Intangible Assets | All of our identifiable intangible assets have definite lives and are presented in other assets on our consolidated balance sheets at gross carrying amount, net of accumulated amortization, as follows: December 31, 2020 December 31, 2019 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 133 $ (52) $ 81 $ 131 $ (45) $ 86 Trade names 32 (9) 23 31 (7) 24 Total intangible assets $ 165 $ (61) $ 104 $ 162 $ (52) $ 110 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Total estimated amortization expense for each of the five succeeding fiscal years is as follows: Estimated (in millions) 2021 $ 8 2022 8 2023 8 2024 8 2025 8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of cash and cash equivalents and other investments reconciliation from adjusted cost to fair value | Our cash and cash equivalents and other investments consist of the following: December 31, 2020 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 108 $ — $ — $ 108 Cash equivalents: U.S. and Canadian government obligations 552 — — 552 Other debt securities 23 — — 23 Total cash and cash equivalents $ 683 $ — $ — $ 683 Nonqualified employee benefit trusts 16 3 — 19 December 31, 2019 Cost Basis Unrealized Unrealized Fair Value (in millions) Cash $ 59 $ — $ — $ 59 Cash equivalents: U.S. and Canadian government obligations 211 — — 211 Other debt securities 17 — — 17 Total cash and cash equivalents $ 287 $ — $ — $ 287 Nonqualified employee benefit trusts 17 2 — 19 |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables present assets and liabilities included in our consolidated balance sheets as of December 31, 2020 and 2019 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value: December 31, 2020 Total Fair Value Quoted Prices Significant Significant (in millions) Cash equivalents $ 575 $ 575 $ — $ — Nonqualified employee benefit trusts 19 19 — — Derivative assets 1 — 1 — Derivative liabilities (7) — (7) — Embedded derivative liability (18) — (18) — December 31, 2019 Total Fair Value Quoted Prices Significant Significant (in millions) Cash equivalents $ 228 $ 228 $ — $ — Nonqualified employee benefit trusts 19 19 — — Derivative liabilities (12) — (12) — Embedded derivative liability (20) — (20) — |
Schedule of carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair value of our financial instruments are as follows: December 31, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value (in millions) Long-term debt, including current maturities $ 3,961 $ 4,731 $ 3,957 $ 4,295 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of earnings before income taxes and equity in earnings of non-operating affiliates | The components of earnings before income taxes and the components of our income tax provision are as follows: Year ended December 31, 2020 2019 2018 (in millions) Domestic $ 421 $ 679 $ 516 Non-U.S. 42 93 31 Earnings before income taxes $ 463 $ 772 $ 547 |
Schedule of components of Income tax provision | Current Federal $ 106 $ 4 $ 5 Foreign 6 21 14 State (7) (48) 6 105 (23) 25 Deferred Federal (76) 112 85 Foreign 4 — (10) State (2) 37 3 (74) 149 78 Income tax provision before Tax Reform 31 126 103 Tax Reform - Current Federal — — 19 Foreign — — — State — — (3) Income tax provision - Tax Reform — — 16 Income tax provision $ 31 $ 126 $ 119 |
Summary of differences in expected income tax provision based on statutory rates applied to earnings before income taxes and income tax provision reflected in the consolidated statements of operations | Differences in the expected income tax provision based on statutory rates applied to earnings before income taxes and the income tax provision reflected in the consolidated statements of operations are summarized below. Year ended December 31, 2020 2019 2018 (in millions, except percentages) Earnings before income taxes $ 463 $ 772 $ 547 Expected tax provision at U.S. statutory rate of 21% $ 97 $ 162 $ 115 State income taxes, net of federal (1) 2 3 Net earnings attributable to noncontrolling interests (24) (32) (29) Foreign tax rate differential 1 2 — U.S. tax on foreign earnings (6) 3 12 Foreign partnership basis difference (7) — — Valuation allowance — — 4 Tax rate change — — (2) Terra amended tax returns (24) (10) — Other (5) (1) — Transition tax liability (Tax Reform) — — 16 Income tax provision $ 31 $ 126 $ 119 Effective tax rate 6.7 % 16.3 % 21.7 % Income tax provision before Tax Reform (1) $ 31 $ 126 $ 103 Effective tax rate before Tax Reform 6.7 % 16.3 % 18.7 % _______________________________________________________________________________ (1) Income tax provision before Tax Reform reflects the income tax provision less the Tax Reform impact included in the table above consisting of the transition tax liability. |
Schedule of deferred tax assets and deferred tax liabilities | Deferred tax assets and deferred tax liabilities are as follows: December 31, 2020 2019 (in millions) Deferred tax assets: Net operating loss and capital loss carryforwards $ 194 $ 108 Retirement and other employee benefits 69 71 State tax credits 69 72 Operating lease liabilities 61 66 Other 23 61 416 378 Valuation allowance (157) (60) 259 318 Deferred tax liabilities: Depreciation and amortization (204) (276) Investments in partnerships (1,173) (1,217) Operating lease right-of-use assets (60) (65) Other (6) (6) (1,443) (1,564) Net deferred tax liability $ (1,184) $ (1,246) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, 2020 2019 (in millions) Unrecognized tax benefits: Balance as of January 1 $ 104 $ 126 Additions for tax positions taken during the current year — — Additions for tax positions taken during prior years — 22 Reductions related to lapsed statutes of limitations — — Reductions related to settlements with tax jurisdictions (23) (44) Balance as of December 31 $ 81 $ 104 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of plan assets, benefit obligations, funded status for the U.S. and Canadian plans | Our plan assets, benefit obligations, funded status and amounts recognized on our consolidated balance sheets for our North America and United Kingdom plans as of the December 31 measurement date are as follows: Pension Plans Retiree Medical Plans North America United Kingdom North America December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 (in millions) Change in plan assets Fair value of plan assets as of January 1 $ 790 $ 673 $ 418 $ 383 $ — $ — Return on plan assets 96 115 58 19 — — Employer contributions 22 38 23 23 4 3 Plan participant contributions — — — — 1 1 Benefit payments (66) (43) (25) (23) (5) (4) Foreign currency translation 4 7 17 16 — — Fair value of plan assets as of December 31 846 790 491 418 — — Change in benefit obligation Benefit obligation as of January 1 (839) (742) (597) (524) (37) (43) Service cost (17) (14) — — — — Interest cost (25) (30) (11) (15) (1) (1) Benefit payments 66 43 25 23 5 4 Foreign currency translation (4) (7) (20) (22) — — Plan amendments — (4) — 3 — — Plan participant contributions — — — — (1) (1) Change in assumptions and other (65) (85) (40) (62) (1) 4 Benefit obligation as of December 31 (884) (839) (643) (597) (35) (37) Funded status as of December 31 $ (38) $ (49) $ (152) $ (179) $ (35) $ (37) |
Schedule of amounts recognized in consolidated balance sheets | Amounts recognized on the consolidated balance sheets consist of the following: Pension Plans Retiree Medical Plans North America United Kingdom North America December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 (in millions) Other assets $ 10 $ 10 $ — $ — $ — $ — Accrued expenses — — — — (3) (3) Other liabilities (48) (59) (152) (179) (32) (34) $ (38) $ (49) $ (152) $ (179) $ (35) $ (37) |
Schedule of pre-tax amounts recognized in accumulated other comprehensive loss | Pre-tax amounts recognized in accumulated other comprehensive loss consist of the following: Pension Plans Retiree Medical Plans North America United Kingdom North America December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 (in millions) Prior service cost $ 4 $ 5 $ 1 $ 1 $ — $ — Net actuarial loss 79 82 129 132 4 2 $ 83 $ 87 $ 130 $ 133 $ 4 $ 2 |
Schedule of net periodic benefit cost and other amounts recognized in accumulated other comprehensive loss | Net periodic benefit cost (income) and other amounts recognized in accumulated other comprehensive loss for the years ended December 31 included the following: Pension Plans Retiree Medical Plans North America United Kingdom North America 2020 2019 2018 2020 2019 2018 2020 2019 2018 (in millions) Service cost $ 17 $ 14 $ 15 $ — $ — $ — $ — $ — $ — Interest cost 25 30 28 11 15 14 1 1 2 Expected return on plan assets (30) (32) (31) (14) (18) (17) — — — Amortization of prior service cost (benefit) 1 — — — — — — (1) (1) Amortization of actuarial loss (gain) 3 — 3 3 — — (1) (1) (1) Net periodic benefit cost (income) 16 12 15 — (3) (3) — (1) — Net actuarial (gain) loss (1) 3 3 (4) 60 (3) 1 (4) (8) Prior service cost (credit) — 4 — — (3) 5 — — — Amortization of prior service (cost) benefit (1) — — — — — — 1 1 Amortization of actuarial (loss) gain (3) — (3) (3) — — 1 1 1 Total recognized in accumulated other comprehensive loss (5) 7 — (7) 57 2 2 (2) (6) Total recognized in net periodic benefit cost (income) and accumulated other comprehensive loss $ 11 $ 19 $ 15 $ (7) $ 54 $ (1) $ 2 $ (3) $ (6) |
Schedule of benefit obligations in excess of fair value of plan assets | The following table presents aggregated information for those individual defined benefit pension plans that have an ABO in excess of plan assets as of December 31, which excludes two North American defined benefit pension plans that have plan assets in excess of its ABO: North America United Kingdom 2020 2019 2020 2019 (in millions) Accumulated benefit obligation $ (678) $ (654) $ (643) $ (597) Fair value of plan assets 667 630 491 418 The following table presents aggregated information for those individual defined benefit pension plans that have a projected benefit obligation (PBO) in excess of plan assets as of December 31, which excludes two North American defined benefit pension plans that have plan assets in excess of its PBO: North America United Kingdom 2020 2019 2020 2019 (in millions) Projected benefit obligation $ (715) $ (689) $ (643) $ (597) Fair value of plan assets 667 630 491 418 |
Schedule of expected future pension and retiree medical benefit payments | The expected future benefit payments for our pension and retiree medical plans are as follows: Pension Plans Retiree Medical Plans North America United Kingdom North America (in millions) 2021 $ 47 $ 27 $ 3 2022 47 28 3 2023 48 29 2 2024 48 30 2 2025 49 30 2 2026-2030 251 163 9 |
Schedule of assumptions used in determining the benefit obligations and expense | The following assumptions were used in determining the benefit obligations and expense: Pension Plans Retiree Medical Plans North America United Kingdom North America 2020 2019 2018 2020 2019 2018 2020 2019 2018 Weighted-average discount rate—obligation 2.4 % 3.1 % 4.1 % 1.5 % 2.0 % 2.9 % 2.2 % 3.0 % 4.1 % Weighted-average discount rate—expense 3.1 % 4.1 % 3.6 % 2.0 % 2.9 % 2.5 % 3.0 % 4.1 % 3.4 % Weighted-average cash balance interest crediting rate—obligation 3.0 % 3.0 % 3.0 % n/a n/a n/a n/a n/a n/a Weighted-average cash balance interest crediting rate—expense 3.0 % 3.0 % 3.0 % n/a n/a n/a n/a n/a n/a Weighted-average rate of increase in future compensation 4.2 % 4.2 % 4.3 % n/a n/a n/a n/a n/a n/a Weighted-average expected long-term rate of return on assets—expense 4.1 % 4.6 % 4.5 % 3.4 % 4.4 % 4.2 % n/a n/a n/a Weighted-average retail price index—obligation n/a n/a n/a 3.0 % 3.0 % 3.3 % n/a n/a n/a Weighted-average retail price index—expense n/a n/a n/a 3.0 % 3.3 % 3.2 % n/a n/a n/a ______________________________________________________________________________ n/a—not applicable |
Schedule of fair values of U.S. and Canadian pension plan assets | The fair values of our pension plan assets as of December 31, 2020 and 2019, by major asset class, are as follows: North America December 31, 2020 Total Fair Quoted Significant Significant (in millions) Cash and cash equivalents (1) $ 30 $ 7 $ 23 $ — Equity mutual funds Index equity (2) 134 134 — — Pooled equity (3) 30 — 30 — Fixed income U.S. Treasury bonds and notes (4) 37 37 — — Corporate bonds and notes (5) 499 — 499 — Government and agency securities (6) 110 — 110 — Other (7) 7 — 7 — Total assets at fair value by fair value levels $ 847 $ 178 $ 669 $ — Accruals and payables—net (1) Total assets $ 846 United Kingdom December 31, 2020 Total Fair Quoted Significant Significant (in millions) Cash and cash funds (8) $ 22 $ 5 $ 17 $ — Pooled equity funds (9) 118 — 118 — Pooled diversified funds (10) 55 — 55 — Debt funds Pooled U.K. government fixed and index-linked securities funds (11) 73 — 73 — Pooled global debt funds (12) 88 — 88 — Pooled liability-driven investment funds (13) 83 — 83 — Total assets at fair value by fair value levels $ 439 $ 5 $ 434 $ — Funds measured at NAV as a practical expedient (14) 52 Total assets $ 491 North America December 31, 2019 Total Fair Quoted Significant Significant (in millions) Cash and cash equivalents (1) $ 21 $ 1 $ 20 $ — Equity mutual funds Index equity (2) 137 137 — — Pooled equity (3) 35 — 35 — Fixed income U.S. Treasury bonds and notes (4) 25 25 — — Corporate bonds and notes (5) 472 — 472 — Government and agency securities (6) 93 — 93 — Other (7) 8 — 8 — Total assets at fair value by fair value levels $ 791 $ 163 $ 628 $ — Accruals and payables—net (1) Total assets $ 790 United Kingdom December 31, 2019 Total Fair Quoted Significant Significant (in millions) Cash $ 4 $ 4 $ — $ — Pooled target return funds (15) 220 — 220 — Fixed income Pooled U.K. government index-linked securities funds (16) 32 — 32 — Pooled global fixed income funds (17) 33 — 33 — Pooled liability-driven investment funds (13) 84 — 84 — Total assets at fair value by fair value levels $ 373 $ 4 $ 369 $ — Pooled property funds measured at NAV as a practical expedient (14) 45 Total assets $ 418 _______________________________________________________________________________ (1) Cash and cash equivalents are primarily repurchase agreements and short-term money market funds . (2) The index equity funds are mutual funds that utilize a passively managed investment approach designed to track specific equity indices. They are valued at quoted market prices in an active market, which represent the net asset values of the shares held by the plan. (3) The equity pooled mutual funds consist of pooled funds that invest in common stock and other equity securities that are traded on U.S., Canadian, and foreign markets. (4) U.S. Treasury bonds and notes are valued based on quoted market prices in an active market. (5) Corporate bonds and notes, including private placement securities, are valued by institutional bond pricing services, which gather information from market sources and integrate credit information, observed market movements and sector news into their pricing applications and models. (6) Government and agency securities consist of U.S. municipal bonds and Canadian provincial bonds that are valued by institutional bond pricing services, which gather information on current trading activity, market movements, trends, and specific data on specialty issues. (7) Other includes primarily mortgage-backed and asset-backed securities, which are valued by institutional pricing services, which gather information from market sources and integrate credit information, observed market movements and sector news into their pricing applications and models. (8) Cash and cash funds include a cash fund that holds primarily short-dated term money market securities. (9) Pooled equity funds invest in a broad array of global equity, equity-related securities, a range of diversifiers and may use derivatives for efficient portfolio management. The funds are valued at net asset value (NAV) as determined by the fund managers based on the value of the underlying net assets of the fund. (10) Pooled diversified funds invest in broad array of asset classes and a range of diversifiers including the use of derivatives. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (11) Pooled U.K. government fixed and index-linked securities funds invest primarily in Sterling denominated fixed income and inflation-linked fixed income securities issued or guaranteed by the U.K. government and may use derivatives for efficient portfolio management. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (12) Pooled global debt funds invest in a broad array of debt securities from corporate and government bonds to emerging markets and high-yield fixed and floating rate securities of varying maturities. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (13) Pooled liability-driven investment funds invest primarily in gilt repurchase agreements, physical United Kingdom government gilts, and derivatives to provide exposure to interest rates, thus hedging this element of risk associated with pension liabilities. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (14) Funds measured at NAV as a practical expedient in 2020 include two funds of funds with return strategies with exposure to varying asset classes and credit strategies, as well as alternative investment strategies not precluding multi-asset credit strategies, global macro strategies, commodities, fixed income, equities and currency, and in 2020 and 2019, pooled property funds that invest primarily in freehold and leasehold property in the United Kingdom. The funds are valued using NAV as determined by the fund managers based on the value of the underlying assets of the fund. (15) Pooled target return funds invest in a broad array of asset classes and a range of diversifiers including the use of derivatives. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. (16) Pooled U.K. government index-linked securities funds invest primarily in United Kingdom government index-linked gilt securities. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. |
Financing Agreements (Tables)
Financing Agreements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt presented on our consolidated balance sheets as of December 31, 2020 and 2019 consisted of the following debt securities issued by CF Industries: Effective Interest Rate December 31, 2020 December 31, 2019 Principal Carrying Amount (1) Principal Carrying Amount (1) (in millions) Public Senior Notes: 3.450% due June 2023 3.562% $ 750 $ 748 $ 750 $ 747 5.150% due March 2034 5.279% 750 741 750 740 4.950% due June 2043 5.031% 750 742 750 742 5.375% due March 2044 5.465% 750 741 750 741 Senior Secured Notes: 3.400% due December 2021 3.782% 250 249 250 248 4.500% due December 2026 4.759% 750 740 750 739 Total long-term debt $ 4,000 $ 3,961 $ 4,000 $ 3,957 Less: Current maturities of long-term debt 250 249 — — Long-term debt, net of current maturities $ 3,750 $ 3,712 $ 4,000 $ 3,957 _______________________________________________________________________________ |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Interest Expense [Abstract] | |
Schedule of interest expense | Details of interest expense are as follows: Year ended December 31, 2020 2019 2018 (in millions) Interest on borrowings (1) $ 185 $ 223 $ 228 Fees on financing agreements (1) 8 13 13 Interest on tax liabilities (2) (14) 3 1 Interest capitalized — (2) (1) Interest expense $ 179 $ 237 $ 241 _______________________________________________________________________________ (1) See Note 12—Financing Agreements for additional information. (2) Interest on tax liabilities for the year ended December 31, 2020 includes a reduction in interest accrued on the reserve for unrecognized tax benefits. |
Other Operating-Net (Tables)
Other Operating-Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Operating-Net | |
Details of other operating-net | Details of other operating—net are as follows: Year ended December 31, 2020 2019 2018 (in millions) Insurance proceeds (1) $ (37) $ (37) $ (10) Loss (gain) on disposal of property, plant and equipment—net (2) 15 (40) 6 Loss (gain) on foreign currency transactions (3) 5 (1) (5) Loss on embedded derivative (4) 3 4 1 Other (3) 1 (19) Other operating—net $ (17) $ (73) $ (27) ___________________________________________________________________________ (1) Insurance proceeds in 2020 and 2019 relate to property and business interruption insurance claims at one of our nitrogen complexes. (2) Loss (gain) on disposal of property, plant and equipment—net in 2020 includes $9 million of engineering costs written off upon the cancellation of a project at one of our nitrogen complexes. In 2019, includes the gain on sale of our Pine Bend facility of $45 million. See Note 6—Property, Plant and Equipment—Net for additional information on the sale of our Pine Bend facility. (3) Loss (gain) on foreign currency transactions consists of foreign currency exchange rate impacts on foreign currency denominated transactions, including the impact of changes in foreign currency exchange rates on intercompany loans that were not permanently invested. (4) Loss on embedded derivative consists of unrealized and realized losses related to a provision of our strategic venture with CHS. See Note 9—Fair Value Measurements for additional information. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of effect of derivatives in our consolidated statements of operations | The effect of derivatives in our consolidated statements of operations is shown in the table below. Gain (loss) recognized in income Year ended December 31, Location 2020 2019 2018 (in millions) Natural gas derivatives Unrealized net gains (losses) Cost of sales $ 6 $ (14) $ 13 Realized net (losses) gains Cost of sales (13) 4 (2) Net derivative (losses) gains $ (7) $ (10) $ 11 |
Schedule of fair values of derivatives in our consolidated balance sheet | The fair values of derivatives on our consolidated balance sheets are shown below. As of December 31, 2020 and 2019, none of our derivative instruments were designated as hedging instruments. See Note 9—Fair Value Measurements for additional information on derivative fair values. Asset Derivatives Liability Derivatives Balance Sheet December 31, Balance Sheet December 31, 2020 2019 2020 2019 (in millions) (in millions) Natural gas derivatives Other current assets $ 1 $ — Other current liabilities $ (7) $ (12) |
Schedule of amounts relevant to offsetting of derivative assets | The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of December 31, 2020 and 2019: Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial Cash collateral received (pledged) Net (in millions) December 31, 2020 Total derivative assets $ 1 $ — $ — $ 1 Total derivative liabilities (7) — — (7) Net derivative liabilities $ (6) $ — $ — $ (6) December 31, 2019 Total derivative assets $ — $ — $ — $ — Total derivative liabilities (12) — — (12) Net derivative liabilities $ (12) $ — $ — $ (12) _______________________________________________________________________________ (1) We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, the gross amounts recognized and net amounts presented are the same. |
Schedule of amounts relevant to offsetting of derivative liabilities | The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of December 31, 2020 and 2019: Amounts presented in consolidated balance sheets (1) Gross amounts not offset in consolidated balance sheets Financial Cash collateral received (pledged) Net (in millions) December 31, 2020 Total derivative assets $ 1 $ — $ — $ 1 Total derivative liabilities (7) — — (7) Net derivative liabilities $ (6) $ — $ — $ (6) December 31, 2019 Total derivative assets $ — $ — $ — $ — Total derivative liabilities (12) — — (12) Net derivative liabilities $ (12) $ — $ — $ (12) _______________________________________________________________________________ (1) We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, the gross amounts recognized and net amounts presented are the same. |
Supplemental Balance Sheet Da_2
Supplemental Balance Sheet Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable—net consist of the following: December 31, 2020 2019 (in millions) Trade $ 256 $ 229 Other 9 13 Accounts receivable—net $ 265 $ 242 |
Schedule of inventory, current | Inventories consist of the following: December 31, 2020 2019 (in millions) Finished goods $ 246 $ 311 Raw materials, spare parts and supplies 41 40 Total inventories $ 287 $ 351 |
Schedule of accounts payable and accrued liabilities | Accounts payable and accrued expenses consist of the following: December 31, 2020 2019 (in millions) Accounts payable $ 85 $ 78 Accrued natural gas costs 106 88 Payroll and employee-related costs 68 81 Accrued interest 32 32 Other 133 158 Total accounts payable and accrued expenses $ 424 $ 437 |
Other noncurrent liabilities | Other liabilities consist of the following: December 31, 2020 2019 (in millions) Benefit plans and deferred compensation $ 256 $ 298 Tax-related liabilities 155 147 Unrealized loss on embedded derivative 13 15 Other 20 14 Other liabilities $ 444 $ 474 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Schedule of reconciliation of the beginning and ending balances of noncontrolling interest and distributions payable to the noncontrolling interests on the entity's consolidated balance sheet | A reconciliation of the beginning and ending balances of noncontrolling interests and distributions payable to the noncontrolling interests on our consolidated balance sheets is provided below. Year ended December 31, 2020 2019 2018 CFN CFN CFN TNCLP Total (in millions) Noncontrolling interests: Balance as of January 1 $ 2,740 $ 2,773 $ 2,772 $ 333 $ 3,105 Earnings attributable to noncontrolling interests 115 153 130 8 138 Declaration of distributions payable (174) (186) (129) (10) (139) Purchase of TNCLP Public Units — — — (331) (331) Balance as of December 31 $ 2,681 $ 2,740 $ 2,773 $ — $ 2,773 Distributions payable to noncontrolling interests: Balance as of January 1 $ — $ — $ — $ — $ — Declaration of distributions payable 174 186 129 10 139 Distributions to noncontrolling interests (174) (186) (129) (10) (139) Balance as of December 31 $ — $ — $ — $ — $ — |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Stockholders Equity | Changes in common shares outstanding are as follows: Year ended December 31, 2020 2019 2018 Beginning balance 216,023,826 222,818,495 233,287,089 Exercise of stock options 321,465 629,186 462,647 Issuance of restricted stock (1) 552,362 267,165 68,803 Purchase of treasury shares (2) (2,942,795) (7,691,020) (11,000,044) Ending balance 213,954,858 216,023,826 222,818,495 _______________________________________________________________________________ (1) Includes shares issued from treasury. (2) Includes shares withheld to pay employee tax obligations upon the vesting of restricted stock or the exercise of stock options. |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes to accumulated other comprehensive loss and the impact on other comprehensive income (loss) are as follows: Foreign Unrealized Unrealized Defined Accumulated (in millions) Balance as of December 31, 2017 $ (145) $ 1 $ 4 $ (123) $ (263) Adoption of ASU 2016-01 (1) — (1) — — (1) Adoption of ASU 2018-02 (2) — — 1 (11) (10) Gain arising during the period — — — 3 3 Reclassification to earnings (3) — — — 2 2 Effect of exchange rate changes and deferred taxes (105) — — 3 (102) Balance as of December 31, 2018 (250) — 5 (126) (371) Loss arising during the period — — — (62) (62) Reclassification to earnings (3) — — — (2) (2) Effect of exchange rate changes and deferred taxes 62 — — 7 69 Balance as of December 31, 2019 (188) — 5 (183) (366) Gain arising during the period — — — 1 1 Reclassification to earnings (3) — — (1) 6 5 Effect of exchange rate changes and deferred taxes 44 — — (4) 40 Balance as of December 31, 2020 $ (144) $ — $ 4 $ (180) $ (320) _______________________________________________________________________________ (1) On January 1, 2018, we adopted ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which changes the income statement impact of equity investments held by an entity. The amendments require the unrealized gains or losses of equity instruments measured at fair value to be recognized in net earnings. Our adoption of this ASU resulted in an increase to opening retained earnings of $1 million representing the cumulative effect of unrealized gains from equity securities from accumulated other comprehensive loss. (2) In the fourth quarter of 2018, we adopted ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allowed a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. As a result of our adoption of this ASU, we reclassified $10 million of stranded tax effects previously recognized in accumulated other comprehensive loss to retained earnings during the fourth quarter of 2018. (3) Reclassifications out of accumulated other comprehensive loss to the consolidated statements of operations were not material. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of stock option activity under the plan | A summary of stock option activity during the year ended December 31, 2020 is presented below: Shares Weighted- Outstanding as of December 31, 2019 5,059,892 $ 39.88 Exercised (321,465) 25.95 Forfeited (6,527) 30.95 Expired (162,859) 52.86 Outstanding as of December 31, 2020 4,569,041 40.41 Exercisable as of December 31, 2020 4,569,041 40.41 Weighted- Aggregate (1) Outstanding as of December 31, 2020 4.2 $ 15 Exercisable as of December 31, 2020 4.2 $ 15 _____________________________________________________________________________ (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $38.71 as of December 31, 2020, which would have been received by the option holders had all option holders exercised their options as of that date. |
Summary of selected amounts pertaining to stock option exercises | Selected amounts pertaining to stock option exercises are as follows: 2020 2019 2018 (in millions) Cash received from stock option exercises $ 8 $ 18 $ 12 Actual tax benefit realized from stock option exercises $ 1 $ 3 $ 2 Pre-tax intrinsic value of stock options exercised $ 4 $ 12 $ 10 |
Summary of information about stock options outstanding and exercisable | 2020 2019 2018 (in millions) Cash received from stock option exercises $ 8 $ 18 $ 12 Actual tax benefit realized from stock option exercises $ 1 $ 3 $ 2 Pre-tax intrinsic value of stock options exercised $ 4 $ 12 $ 10 |
Summary of selected amounts pertaining to restricted stock that vested | . |
Summary of stock-based compensation costs and related income tax benefits | The following table summarizes stock-based compensation costs and related income tax benefits: Year ended December 31, 2020 2019 2018 (in millions) Stock-based compensation expense $ 26 $ 28 $ 21 Income tax benefit (6) (6) (4) Stock-based compensation expense, net of income taxes $ 20 $ 22 $ 17 |
Summary of restricted stock activity under the Plan | A summary of restricted stock activity during the year ended December 31, 2020 is presented below. Restricted Stock Awards Restricted Stock Units Performance Restricted Stock Units Shares Weighted- Shares Weighted- Shares Weighted- Outstanding as of December 31, 2019 36,567 $ 41.84 693,960 $ 40.14 304,834 $ 44.42 Granted 50,895 27.51 316,154 45.23 210,869 47.93 Restrictions lapsed (vested) (1) (36,567) 41.84 (372,855) 38.36 (58,460) 48.68 Forfeited — — (23,165) 44.13 (11,745) 45.97 Outstanding as of December 31, 2020 50,895 27.51 614,094 43.70 445,498 45.72 _______________________________________________________________________________ (1) For performance restricted stock units, the shares represent the performance restricted stock units granted in 2017, for which the three-year performance period ended December 31, 2019. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of segment data for sales, cost of sales and gross margin | Segment data for sales, cost of sales and gross margin for 2020, 2019 and 2018 are presented in the table below. Ammonia Granular Urea (1) UAN (1) AN (1) Other (1) Consolidated (in millions) Year ended December 31, 2020 Net sales $ 1,020 $ 1,248 $ 1,063 $ 455 $ 338 $ 4,124 Cost of sales 850 847 949 390 287 3,323 Gross margin $ 170 $ 401 $ 114 $ 65 $ 51 801 Total other operating costs and expenses 189 Equity in earnings of operating affiliate 11 Operating earnings $ 623 Year ended December 31, 2019 Net sales $ 1,113 $ 1,342 $ 1,270 $ 506 $ 359 $ 4,590 Cost of sales 878 861 981 399 297 3,416 Gross margin $ 235 $ 481 $ 289 $ 107 $ 62 1,174 Total other operating costs and expenses 166 Equity in loss of operating affiliate (5) Operating earnings $ 1,003 Year ended December 31, 2018 Net sales $ 1,028 $ 1,322 $ 1,234 $ 460 $ 385 $ 4,429 Cost of sales 867 889 1,007 414 335 3,512 Gross margin $ 161 $ 433 $ 227 $ 46 $ 50 917 Total other operating costs and expenses 187 Equity in earnings of operating affiliate 36 Operating earnings $ 766 _______________________________________________________________________________ (1) The cost of ammonia that is upgraded into other products is transferred at cost into the upgraded product results. |
Schedule of segment depreciation, depletion and amortization | Ammonia Granular Urea UAN AN Other Corporate Consolidated (in millions) Depreciation and amortization Year ended December 31, 2020 $ 176 $ 270 $ 256 $ 100 $ 68 $ 22 $ 892 Year ended December 31, 2019 167 264 251 88 72 33 875 Year ended December 31, 2018 155 276 270 85 67 35 888 |
Schedule of enterprise-wide data by geographic region | Enterprise-wide data by geographic region is as follows: Year ended December 31, 2020 2019 2018 (in millions) Sales by geographic region (based on destination of shipments): United States $ 3,036 $ 3,387 $ 3,160 Foreign: Canada 397 410 379 North America, excluding U.S. and Canada 54 53 81 United Kingdom 332 413 425 Other foreign 305 327 384 Total foreign 1,088 1,203 1,269 Consolidated $ 4,124 $ 4,590 $ 4,429 December 31, 2020 2019 2018 (in millions) Property, plant and equipment—net by geographic region: United States $ 6,527 $ 6,991 $ 7,426 Foreign: Canada 525 558 544 United Kingdom 580 621 653 Total foreign 1,105 1,179 1,197 Consolidated $ 7,632 $ 8,170 $ 8,623 |
Statement of Cash Flows, Supple
Statement of Cash Flows, Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental cash flows related to leases | The following provides additional information relating to cash flow activities: Year ended December 31, 2020 2019 2018 (in millions) Cash paid during the year for Interest—net of interest capitalized $ 184 $ 228 $ 227 Income taxes—net of refunds 111 (41) 7 Supplemental disclosure of noncash investing and financing activities: Change in capitalized expenditures in accounts payable and accrued expenses $ 1 $ (6) $ 2 Change in accrued share repurchases — (33) 33 Supplemental cash flow information related to leases was as follows: Year ended December 31, 2020 2019 (in millions) Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 105 $ 93 Right-of-use (ROU) assets obtained in exchange for operating lease obligations 80 73 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of lease costs | The components of lease costs were as follows: Year ended December 31, 2020 2019 (in millions) Operating lease cost $ 107 $ 95 Short-term lease cost 17 26 Variable lease cost 6 4 Total lease cost $ 130 $ 125 |
Supplemental cash flows related to leases | The following provides additional information relating to cash flow activities: Year ended December 31, 2020 2019 2018 (in millions) Cash paid during the year for Interest—net of interest capitalized $ 184 $ 228 $ 227 Income taxes—net of refunds 111 (41) 7 Supplemental disclosure of noncash investing and financing activities: Change in capitalized expenditures in accounts payable and accrued expenses $ 1 $ (6) $ 2 Change in accrued share repurchases — (33) 33 Supplemental cash flow information related to leases was as follows: Year ended December 31, 2020 2019 (in millions) Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 105 $ 93 Right-of-use (ROU) assets obtained in exchange for operating lease obligations 80 73 |
Supplemental balance sheet related to leases | Supplemental balance sheet information related to leases was as follows: December 31, 2020 2019 (in millions) Operating lease ROU assets $ 259 $ 280 Current operating lease liabilities $ 88 $ 90 Operating lease liabilities 174 193 Total operating lease liabilities $ 262 $ 283 December 31, 2020 2019 Operating leases Weighted-average remaining lease term 4 years 5 years Weighted-average discount rate (1) 4.7 % 4.9 % |
Reconciliation of undiscounted cash flows | The following table reconciles the undiscounted cash flows for our operating leases to the operating lease liabilities recorded on our consolidated balance sheet as of December 31, 2020. Operating (in millions) 2021 $ 90 2022 68 2023 47 2024 39 2025 22 Thereafter 24 Total lease payments 290 Less: imputed interest (28) Present value of lease liabilities 262 Less: Current operating lease liabilities (88) Operating lease liabilities $ 174 |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2020Manufacturing_complex | |
Principal assets | |
Number of nitrogen fertilizer manufacturing facilities North America | 5 |
Number of nitrogen fertilizer manufacturing facilities Canada | 2 |
CF Industries Nitrogen, LLC | |
Principal assets | |
Ownership interest (as a percent) | 89.00% |
Operating equity method investments | Point Lisas Nitrogen Limited (PLNL) | |
Principal assets | |
Ownership interest (as a percent) | 50.00% |
CF Fertilisers UK | |
Principal assets | |
Number of nitrogen complexes | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | Apr. 02, 2018 | Dec. 31, 2020 | Feb. 07, 2018 |
Cash and Cash Equivalents [Abstract] | |||
Maximum original maturity period of highly liquid debt instruments to be considered as cash equivalents | 3 months | ||
Operating equity method investments | Point Lisas Nitrogen Limited (PLNL) | |||
Consolidation and Noncontrolling Interest | |||
Ownership interest (as a percent) | 50.00% | ||
CF Industries Nitrogen, LLC | |||
Consolidation and Noncontrolling Interest | |||
Ownership interest (as a percent) | 89.00% | ||
Terra Nitrogen Company LP | Terra Nitrogen GP Inc | |||
Consolidation and Noncontrolling Interest | |||
business acquisition, number of units purchased | 4,612,562 | ||
Acquisition of noncontrolling interests in TNCLP | $ 388,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2020 | |
Depreciable lives | |
Turnaround period | 5 years |
Mobile and office equipment | Minimum | |
Depreciable lives | |
Depreciable life | 3 years |
Mobile and office equipment | Maximum | |
Depreciable lives | |
Depreciable life | 10 years |
Production facilities and related assets | Minimum | |
Depreciable lives | |
Depreciable life | 2 years |
Production facilities and related assets | Maximum | |
Depreciable lives | |
Depreciable life | 30 years |
Land improvements | Minimum | |
Depreciable lives | |
Depreciable life | 10 years |
Land improvements | Maximum | |
Depreciable lives | |
Depreciable life | 30 years |
Buildings | Minimum | |
Depreciable lives | |
Depreciable life | 10 years |
Buildings | Maximum | |
Depreciable lives | |
Depreciable life | 40 years |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Customary payment terms | 30 days | ||
Customer advances | $ 130 | $ 119 | |
Point Lisas Nitrogen Limited (PLNL) | Operating equity method investments | |||
Disaggregation of Revenue [Line Items] | |||
Obligation to purchase ammonia (description) | 50% of the ammonia produced by PLNL | ||
Continuous Basis | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 44 | $ 55 | $ 85 |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Product and by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 4,124 | $ 4,590 | $ 4,429 |
Ammonia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,020 | 1,113 | 1,028 |
Granular Urea | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,248 | 1,342 | 1,322 |
UAN | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,063 | 1,270 | 1,234 |
AN | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 455 | 506 | 460 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 338 | 359 | 385 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,487 | 3,849 | 3,620 |
North America | Ammonia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 874 | 948 | 883 |
North America | Granular Urea | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,183 | 1,269 | 1,243 |
North America | UAN | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 998 | 1,176 | 1,047 |
North America | AN | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 197 | 200 | 186 |
North America | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 235 | 256 | 261 |
Europe and Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 637 | 741 | 809 |
Europe and Other | Ammonia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 146 | 165 | 145 |
Europe and Other | Granular Urea | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 65 | 73 | 79 |
Europe and Other | UAN | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 65 | 94 | 187 |
Europe and Other | AN | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 258 | 306 | 274 |
Europe and Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 103 | $ 103 | $ 124 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Amount of remaining performance obligation | $ 867,000,000 |
Revenue, Performance Obligation, description of returns and other similar obligations, unfulfilled minimum contractual right of payment | $ 212,000,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 31.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 42.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 42.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 23.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent | 23.00% |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Net earnings attributable to common stockholders | $ 317 | $ 493 | $ 290 |
Basic earnings per common share: | |||
Weighted-average common shares outstanding (in shares) | 214.9 | 220.2 | 232.6 |
Net earnings attributable to common stockholders (in dollars per share) | $ 1.48 | $ 2.24 | $ 1.25 |
Diluted earnings per common share: | |||
Weighted-average common shares outstanding (in shares) | 214.9 | 220.2 | 232.6 |
Dilutive common shares—stock options (in shares) | 0.3 | 1.4 | 1.2 |
Diluted weighted-average shares outstanding (in shares) | 215.2 | 221.6 | 233.8 |
Net earnings attributable to common stockholders (in dollars per share) | $ 1.47 | $ 2.23 | $ 1.24 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.3 | 1.4 | 1.5 |
Property, Plant and Equipment_3
Property, Plant and Equipment-Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment-Net | ||||
Gross property plant and equipment | $ 13,777 | $ 13,535 | ||
Less: Accumulated depreciation and amortization | 6,145 | 5,365 | ||
Property, plant and equipment—net | 7,632 | 8,170 | $ 8,623 | |
Construction in progress expenditures incurred but not yet paid | 43 | 42 | ||
Proceeds from Sale of Other Assets | $ 55 | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 45 | (15) | 40 | (6) |
Accumulated depreciation, depletion and amortization related to property plant and equipment | 876 | 855 | 865 | |
Land | ||||
Property, Plant and Equipment-Net | ||||
Gross property plant and equipment | 68 | 71 | ||
Machinery and equipment | ||||
Property, Plant and Equipment-Net | ||||
Gross property plant and equipment | 12,539 | 12,338 | ||
Changes in plant turnaround activity | ||||
Balance at the beginning of the period | 246 | 252 | 208 | |
Capitalized Plant Turnaround Additions | 84 | 102 | 156 | |
Capitalized Plant Turnaround Depreciation | (104) | (112) | (111) | |
Capitalized Plant Turnaround Cost Changes in Exchange Rate Effect | 0 | 4 | (1) | |
Balance at the end of the period | 226 | 246 | $ 252 | |
Buildings and improvements | ||||
Property, Plant and Equipment-Net | ||||
Gross property plant and equipment | 895 | 890 | ||
Construction in progress | ||||
Property, Plant and Equipment-Net | ||||
Gross property plant and equipment | $ 275 | $ 236 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the year | $ 2,365 |
Effect of exchange rate changes | 9 |
Balance at the end of the year | 2,374 |
Ammonia | |
Goodwill [Roll Forward] | |
Balance at the beginning of the year | 587 |
Effect of exchange rate changes | 0 |
Balance at the end of the year | 587 |
Granular Urea | |
Goodwill [Roll Forward] | |
Balance at the beginning of the year | 828 |
Effect of exchange rate changes | 0 |
Balance at the end of the year | 828 |
UAN | |
Goodwill [Roll Forward] | |
Balance at the beginning of the year | 576 |
Effect of exchange rate changes | 0 |
Balance at the end of the year | 576 |
AN | |
Goodwill [Roll Forward] | |
Balance at the beginning of the year | 302 |
Effect of exchange rate changes | 8 |
Balance at the end of the year | 310 |
Other | |
Goodwill [Roll Forward] | |
Balance at the beginning of the year | 72 |
Effect of exchange rate changes | 1 |
Balance at the end of the year | $ 73 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Identifiable intangibles | |||
Gross Carrying Amount | $ 165 | $ 162 | |
Accumulated Amortization | (61) | (52) | |
Net | $ 104 | 110 | |
Finite-lived intangible asset, useful life | 20 years | ||
Amortization expense | $ 8 | 8 | $ 7 |
Customer relationships | |||
Identifiable intangibles | |||
Gross Carrying Amount | 133 | 131 | |
Accumulated Amortization | (52) | (45) | |
Net | 81 | 86 | |
Trade names | |||
Identifiable intangibles | |||
Gross Carrying Amount | 32 | 31 | |
Accumulated Amortization | (9) | (7) | |
Net | $ 23 | $ 24 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Details 3) $ in Millions | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 | $ 8 |
2022 | 8 |
2023 | 8 |
2024 | 8 |
2025 | $ 8 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | |
Equity method investments | ||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ (110) | |||
Operating equity method investments | Point Lisas Nitrogen Limited (PLNL) | ||||
Equity method investments | ||||
Ownership interest (as a percent) | 50.00% | |||
Equity Method Investments | $ 80 | |||
Carrying value of investments in excess of the entity's share of the affiliates' book value | $ 42 | |||
Obligation to purchase ammonia (description) | 50% of the ammonia produced by PLNL | |||
Unrecorded Unconditional Purchase Obligation, Purchases | $ 57 | $ 69 | $ 86 | |
The Board of Inland Revenue | Operating equity method investments | Point Lisas Nitrogen Limited (PLNL) | ||||
Equity method investments | ||||
Gain Related to Litigation Settlement | $ (19) | |||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 16 | |||
Tax assessment amount | $ 12 | |||
Point Lisas Nitrogen Limited (PLNL) | The Board of Inland Revenue | ||||
Equity method investments | ||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ 32 | |||
Property, Plant and Equipment | Maximum | Operating equity method investments | ||||
Equity method investments | ||||
Finite Lived Tangible and Intangible Assets Revaluation Increased Basis Depreciation Period | 12 years |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Cash | $ 108 | $ 59 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents, fair value | 683 | 287 |
Total cash and cash equivalents | 683 | 287 |
U.S. and Canadian government obligations | ||
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents, adjusted cost | 552 | 211 |
Cash equivalents, fair value | 552 | 211 |
Other debt obligations | ||
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents, adjusted cost | 23 | 17 |
Cash equivalents, fair value | 23 | 17 |
Nonqualified employee benefit trusts | ||
Cash and Cash Equivalents [Abstract] | ||
Available-for-sale securities, amortized cost | 16 | 17 |
Available-for-sale securities, unrealized gain | 3 | 2 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale securities, fair value | $ 19 | $ 19 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets and liabilities measured at fair value on a recurring basis | ||||||||
Payment to CHS related to credit provision | $ (5) | $ (5) | $ (5) | $ (5) | $ (5) | $ (5) | $ (5) | $ (5) |
Loss on embedded derivative | 3 | 4 | $ 1 | |||||
Recurring basis | ||||||||
Assets and liabilities measured at fair value on a recurring basis | ||||||||
Cash equivalents | 575 | 228 | 575 | 228 | ||||
Nonqualified employee benefit trusts | 19 | 19 | 19 | 19 | ||||
Derivative assets | 1 | 1 | ||||||
Derivative liabilities | (7) | (12) | (7) | (12) | ||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | (18) | (20) | (18) | (20) | ||||
Recurring basis | Quoted Prices in Active Markets (Level 1) | ||||||||
Assets and liabilities measured at fair value on a recurring basis | ||||||||
Cash equivalents | 575 | 228 | 575 | 228 | ||||
Nonqualified employee benefit trusts | 19 | 19 | 19 | 19 | ||||
Derivative assets | 0 | 0 | ||||||
Derivative liabilities | 0 | 0 | 0 | 0 | ||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 0 | 0 | 0 | 0 | ||||
Recurring basis | Significant Other Observable Inputs (Level 2) | ||||||||
Assets and liabilities measured at fair value on a recurring basis | ||||||||
Cash equivalents | 0 | 0 | 0 | 0 | ||||
Nonqualified employee benefit trusts | 0 | 0 | 0 | 0 | ||||
Derivative assets | 1 | 1 | ||||||
Derivative liabilities | (7) | (12) | (7) | (12) | ||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | (18) | (20) | (18) | (20) | ||||
Recurring basis | Significant Unobservable Inputs (Level 3) | ||||||||
Assets and liabilities measured at fair value on a recurring basis | ||||||||
Cash equivalents | 0 | 0 | 0 | 0 | ||||
Nonqualified employee benefit trusts | 0 | 0 | 0 | 0 | ||||
Derivative assets | 0 | 0 | ||||||
Derivative liabilities | 0 | 0 | 0 | 0 | ||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 0 | 0 | 0 | 0 | ||||
Estimate of Fair Value Measurement | ||||||||
Debt Instrument, Fair Value Disclosure [Abstract] | ||||||||
Long-term debt, Fair Value | 4,731 | 4,295 | 4,731 | 4,295 | ||||
Reported Value Measurement | ||||||||
Debt Instrument, Fair Value Disclosure [Abstract] | ||||||||
Long-term debt, Fair Value | $ 3,961 | $ 3,957 | $ 3,961 | $ 3,957 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
GILTI tax credit | $ 16 | ||
Components of earnings before income taxes and equity in earnings of non-operating affiliates | |||
Domestic | $ 421 | 679 | $ 516 |
Non-U.S. | 42 | 93 | 31 |
Earnings before income taxes | 463 | 772 | 547 |
Current | |||
Federal | 106 | 4 | 5 |
Foreign | 6 | 21 | 14 |
State | (7) | (48) | 6 |
Total | 105 | (23) | 25 |
Deferred | |||
Federal | (76) | 112 | 85 |
Foreign | 4 | 0 | (10) |
State | (2) | 37 | 3 |
Total | (74) | 149 | 78 |
Income tax provision before Tax Reform | 31 | 126 | 103 |
Federal | 0 | 0 | 19 |
Foreign | 0 | 0 | 0 |
State | 0 | 0 | (3) |
Income tax provision - Tax Reform | 0 | 0 | 16 |
Income tax provision | 31 | 126 | 119 |
income tax expense (benefit) after Tax Cuts and Jobs Act of 2017 | 16 | ||
U.S. tax on foreign earnings | $ (6) | $ 3 | $ 12 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Earnings before income taxes | $ 463 | $ 772 | $ 547 |
Expected tax provision at U.S. statutory rate of 21% | 97 | 162 | 115 |
State income taxes, net of federal | (1) | 2 | 3 |
Net earnings attributable to noncontrolling interests | (24) | (32) | (29) |
Foreign tax rate differential | 1 | 2 | 0 |
U.S. tax on foreign earnings | (6) | 3 | 12 |
Foreign partnership basis difference | (7) | 0 | 0 |
Valuation allowance | 0 | 0 | 4 |
Terra amended tax returns | 0 | 0 | (2) |
Other | (5) | (1) | 0 |
Transition tax liability (Tax Reform) | 0 | 0 | 16 |
Income tax provision | $ 31 | $ 126 | $ 119 |
Effective tax rate | 6.70% | 16.30% | 21.70% |
Income tax (benefit) provision before Tax Reform | $ 31 | $ 126 | $ 103 |
Effective tax rate before Tax Reform | 6.70% | 16.30% | 18.70% |
Tax Adjustments, Settlements, and Unusual Provisions | $ (24) | $ (10) | $ 0 |
Income Taxes (Details 3)
Income Taxes (Details 3) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | ||
deferred tax assets operating lease liabilities | $ 61 | $ 66 |
Deferred tax assets: | ||
Net operating loss and capital loss carryforwards | 194 | 108 |
Retirement and other employee benefits | 69 | 71 |
Other | 23 | 61 |
Gross deferred tax assets | 416 | 378 |
Valuation allowance | (157) | (60) |
Net deferred tax assets | 259 | 318 |
Deferred tax liabilities: | ||
Depreciation and amortization | (204) | (276) |
Investments in partnerships | (1,173) | (1,217) |
Operating lease right-of-use assets | 60 | 65 |
Other | 6 | 6 |
Deferred tax liabilities | (1,443) | (1,564) |
Net deferred tax liability | (1,184) | (1,246) |
Unrecognized tax benefits: | ||
Balance as of January 1 | 104 | 126 |
Additions for tax positions taken during the current year | 0 | 0 |
Additions for tax positions taken during prior years | 0 | 22 |
Reductions related to lapsed statutes of limitations | 0 | 0 |
Reductions related to settlements with tax jurisdictions | (23) | (44) |
Balance as of December 31 | 81 | 104 |
Deferred Tax Assets, Tax Credit Carryforwards | $ 69 | $ 72 |
Income Taxes (Details 4)
Income Taxes (Details 4) $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2021USD ($) | |
Operating Loss Carryforwards [Line Items] | ||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ (24) | $ (10) | $ 0 | |||
Income Tax Examination, Interest Income, Net of Tax | 23 | |||||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | $ 9 | |||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority, Income Tax Matter | 68 | 68 | ||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority, Withholding Tax Matter | 42 | 42 | ||||
Income Tax Expense (Benefit) | (31) | (126) | (119) | |||
Valuation allowance | 0 | 0 | 4 | |||
Deferred tax assets, capital loss carryforwards | 90 | 90 | ||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 23 | 44 | ||||
Interest expense and penalties | ||||||
Interest expense and penalties related to potential income taxes | (29) | 4 | $ 1 | |||
Accrued interest expense and penalties | ||||||
Amount recognized in consolidated balance sheets for accrued interest and penalties related to income taxes | 4 | 4 | 33 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 37 | 37 | ||||
Terra Amended Tax Returns | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 4 | |||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 19 | |||||
Subsequent Event | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority, Withholding Tax Matter | $ 20 | |||||
Canada Revenue Agency | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax assessment amount | 137 | $ 174 | ||||
Internal Revenue Service (IRS) | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 12 | |||||
State Tax Authority | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforwards not expected to be realized | 27 | 27 | ||||
State Tax Authority | Tax Year 2033 to 2040 | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward valuation allowance | 69 | 69 | ||||
Foreign Tax Authority | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards increase (decrease) valuation allowance | $ 99 | 99 | ||||
Valuation allowance | (99) | |||||
Domestic Tax Authority | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income Tax Expense (Benefit) | 18 | |||||
Income Tax Examination, Interest Income | 26 | |||||
Accrued interest expense and penalties | ||||||
Income Tax Examination, Interest Income | 26 | |||||
Point Lisas Nitrogen Limited (PLNL) | Foreign Tax Authority | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 6 | |||||
Interest Income | Internal Revenue Service (IRS) | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax Adjustments, Settlements, and Unusual Provisions | 5 | |||||
interest income, net [Member] | Internal Revenue Service (IRS) | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax Adjustments, Settlements, and Unusual Provisions | 4 | |||||
income tax benefit | Internal Revenue Service (IRS) | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 10 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Pension_plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Pension and Other Postretirement Benefits | |||
Number of funded plans | Pension_plan | 1 | ||
Number of funded plans closed to new employees | Pension_plan | 1 | ||
Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Number of funded plans | Pension_plan | 5 | ||
United States | Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Defined Benefit Plan Target Allocation Percentage of Assets Non Equity Securities | 80.00% | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | ||
United Kingdom | |||
Pension and Other Postretirement Benefits | |||
Number of funded plans | Pension_plan | 2 | ||
United Kingdom | Pension Plans | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at the beginning of the period | $ 418 | $ 383 | |
Return on plan assets | 58 | 19 | |
Employer contributions | 23 | 23 | |
Plan participant contributions | 0 | 0 | |
Benefit payments | (25) | (23) | |
Foreign currency translation | 17 | 16 | |
Fair value of plan assets at the end of the period | 491 | 418 | $ 383 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at the beginning of the period | (597) | (524) | |
Defined Benefit Plan, Service Cost | 0 | 0 | 0 |
Defined Benefit Plan, Interest Cost | (11) | (15) | (14) |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | (20) | (22) | |
Defined Benefit Plan Change in Assumptions and Other | (40) | (62) | |
Benefit obligation at the end of the period | (643) | (597) | (524) |
Funded status as of December 31 | (152) | (179) | |
Amounts recognized in the consolidated balance sheets | |||
Assets for Plan Benefits, Defined Benefit Plan | 0 | 0 | |
Liability, Defined Benefit Plan, Current | 0 | ||
Liability, Defined Benefit Plan, Noncurrent | (152) | (179) | |
Amounts recognized in the consolidated balance sheets, total | (152) | (179) | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 25 | 23 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 3 | |
North America | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at the beginning of the period | (839) | ||
Benefit obligation at the end of the period | (839) | ||
Amounts recognized in the consolidated balance sheets | |||
Assets for Plan Benefits, Defined Benefit Plan | 0 | 0 | |
Liability, Defined Benefit Plan, Current | $ 0 | 0 | |
North America | Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Number of funded plans | Pension_plan | 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at the beginning of the period | $ 790 | 673 | |
Return on plan assets | 96 | 115 | |
Employer contributions | 22 | 38 | |
Plan participant contributions | 0 | 0 | |
Benefit payments | (66) | (43) | |
Foreign currency translation | 4 | 7 | |
Fair value of plan assets at the end of the period | 846 | 790 | 673 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at the beginning of the period | (839) | (742) | |
Defined Benefit Plan, Service Cost | (17) | (14) | (15) |
Defined Benefit Plan, Interest Cost | (25) | (30) | (28) |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | (4) | (7) | |
Defined Benefit Plan Change in Assumptions and Other | (65) | (85) | |
Benefit obligation at the end of the period | (884) | (839) | (742) |
Funded status as of December 31 | (38) | (49) | |
Amounts recognized in the consolidated balance sheets | |||
Assets for Plan Benefits, Defined Benefit Plan | 10 | 10 | |
Liability, Defined Benefit Plan, Noncurrent | (48) | (59) | |
Amounts recognized in the consolidated balance sheets, total | (38) | (49) | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 66 | 43 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | (4) | |
Lump sum payments | (22) | ||
North America | Retiree Medical | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at the beginning of the period | 0 | 0 | |
Return on plan assets | 0 | 0 | |
Employer contributions | 4 | 3 | |
Plan participant contributions | 1 | 1 | |
Benefit payments | (5) | (4) | |
Foreign currency translation | 0 | 0 | |
Fair value of plan assets at the end of the period | 0 | 0 | 0 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at the beginning of the period | (37) | (43) | |
Defined Benefit Plan, Service Cost | 0 | 0 | 0 |
Defined Benefit Plan, Interest Cost | (1) | (1) | (2) |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
Defined Benefit Plan Change in Assumptions and Other | (1) | 4 | |
Benefit obligation at the end of the period | (35) | (37) | $ (43) |
Funded status as of December 31 | (35) | (37) | |
Amounts recognized in the consolidated balance sheets | |||
Liability, Defined Benefit Plan, Current | (3) | (3) | |
Liability, Defined Benefit Plan, Noncurrent | (32) | (34) | |
Amounts recognized in the consolidated balance sheets, total | (35) | (37) | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | (1) | (1) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 5 | 4 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | $ 0 | $ 0 | |
Canada | |||
Pension and Other Postretirement Benefits | |||
Number of funded plans | Pension_plan | 2 | ||
Canada | Pension Plans | CF Canadian Plan | |||
Pension and Other Postretirement Benefits | |||
Defined Benefit Plan Target Allocation Percentage of Assets Non Equity Securities | 70.00% | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30.00% | ||
Canada | Pension Plans | Terra Canadian Plan | |||
Pension and Other Postretirement Benefits | |||
Defined Benefit Plan Target Allocation Percentage of Assets Non Equity Securities | 100.00% |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits (Details 2) - USD ($) | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Retiree Medical | ||||
Assumptions used in determining the benefit obligations and expense: | ||||
Defined benefit plan, pre-65 health care cost trend rate assumed for next fiscal year | 6.30% | 7.00% | ||
Defined benefit plan, pre-65 ultimate health care cost trend rate for 2026 | 4.50% | 4.50% | ||
Defined benefit plan, post-65 health care cost trend rate assumed for next fiscal year | 7.00% | 8.30% | ||
Defined benefit plan, post-65 ultimate health care cost trend rate for 2026 | 4.50% | 4.50% | ||
United States | Pension Plans | ||||
Current target asset allocation | ||||
Defined Benefit Plan Target Allocation Percentage of Assets Non Equity Securities | 80.00% | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | |||
United Kingdom | ||||
Pre-tax amounts recognized in accumulated other comprehensive loss | ||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | $ 1,000,000 | $ 1,000,000 | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 129,000,000 | 132,000,000 | ||
Pre-tax amounts recognized in accumulated other comprehensive loss, total | $ 130,000,000 | 133,000,000 | ||
United Kingdom | Subsequent Event | ||||
Assumptions used in determining the benefit obligations and expense: | ||||
Weighted average expected long-term rate of return on assets-expense (as a percent) | 3.30% | |||
United Kingdom | United Kingdom Terra | ||||
Current target asset allocation | ||||
Defined Benefit Plan, Target Plan Asset Allocations, Growth Portfolio | 55.00% | |||
Defined Benefit Plan, Target Plan Asset Allocations, Matching Portfolio | 45.00% | |||
United Kingdom | United Kingdom Kemira | ||||
Current target asset allocation | ||||
Defined Benefit Plan, Target Plan Asset Allocations, Growth Portfolio | 60.00% | |||
Defined Benefit Plan, Target Plan Asset Allocations, Matching Portfolio | 40.00% | |||
United Kingdom | Pension Plans | ||||
Pension and Other Postretirement Benefits | ||||
Fair value of plan assets | $ 491,000,000 | 418,000,000 | $ 383,000,000 | |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 643,000,000 | 597,000,000 | ||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 3,000,000 | ||
Net periodic benefit cost and other amounts recognized in accumulated other comprehensive loss: | ||||
Service cost | 0 | 0 | 0 | |
Interest cost | 11,000,000 | 15,000,000 | 14,000,000 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (14,000,000) | (18,000,000) | (17,000,000) | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | |
Defined Benefit Plan, Amortization of Gain (Loss) | 3,000,000 | 0 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | 0 | (3,000,000) | (3,000,000) | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (4,000,000) | 60,000,000 | (3,000,000) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (3,000,000) | 0 | 0 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax, Total | (7,000,000) | 57,000,000 | 2,000,000 | |
Defined Benefit Plan, Amount Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Income) Loss, before Tax, Total | (7,000,000) | 54,000,000 | $ (1,000,000) | |
Benefit obligation and fair value of plan assets by pension plans | ||||
Accumulated benefit obligation | 643,000,000 | 597,000,000 | ||
Fair value of plan assets | 491,000,000 | 418,000,000 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 491,000,000 | $ 418,000,000 | ||
Consolidated pension funding contributions for 2020 | 27,000,000 | |||
Expected future pension and retiree medical benefit payments: | ||||
2021 | 27,000,000 | |||
2022 | 28,000,000 | |||
2023 | 29,000,000 | |||
2024 | 30,000,000 | |||
2025 | 30,000,000 | |||
2026-2030 | $ 163,000,000 | |||
Assumptions used in determining the benefit obligations and expense: | ||||
Weighted average discount rate - obligation (as a percent) | 1.50% | 2.00% | 2.90% | |
Weighted average discount rate - expense (as a percent) | 2.00% | 2.90% | 2.50% | |
Weighted average expected long-term rate of return on assets-expense (as a percent) | 3.40% | 4.40% | 4.20% | |
Weighted-average retail price index—obligation (as a percent) | 3.00% | 3.00% | 3.30% | |
Weighted-average retail price index—expense (as a percent) | 3.00% | 3.30% | 3.20% | |
Current target asset allocation | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | $ 0 | $ (3,000,000) | $ 5,000,000 | |
North America | ||||
Assumptions used in determining the benefit obligations and expense: | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 3.00% | 3.00% | 3.00% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 3.00% | 3.00% | 3.00% | |
Cash balance interest crediting rate for the plan | 3.00% | |||
North America | Pension Plans | ||||
Pension and Other Postretirement Benefits | ||||
Fair value of plan assets | $ 846,000,000 | $ 790,000,000 | $ 673,000,000 | |
Defined Benefit Plan, Accumulated Benefit Obligation | 834,000,000 | 793,000,000 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 715,000,000 | 689,000,000 | ||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | (4,000,000) | ||
Pre-tax amounts recognized in accumulated other comprehensive loss | ||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 4,000,000 | 5,000,000 | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 79,000,000 | 82,000,000 | ||
Pre-tax amounts recognized in accumulated other comprehensive loss, total | 83,000,000 | 87,000,000 | ||
Net periodic benefit cost and other amounts recognized in accumulated other comprehensive loss: | ||||
Service cost | 17,000,000 | 14,000,000 | 15,000,000 | |
Interest cost | 25,000,000 | 30,000,000 | 28,000,000 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (30,000,000) | (32,000,000) | (31,000,000) | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 1,000,000 | 0 | 0 | |
Defined Benefit Plan, Amortization of Gain (Loss) | 3,000,000 | 0 | 3,000,000 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | 16,000,000 | 12,000,000 | 15,000,000 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (1,000,000) | 3,000,000 | 3,000,000 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (1,000,000) | 0 | 0 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (3,000,000) | 0 | (3,000,000) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax, Total | (5,000,000) | 7,000,000 | 0 | |
Defined Benefit Plan, Amount Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Income) Loss, before Tax, Total | 11,000,000 | 19,000,000 | $ 15,000,000 | |
Benefit obligation and fair value of plan assets by pension plans | ||||
Accumulated benefit obligation | 678,000,000 | 654,000,000 | ||
Fair value of plan assets | 667,000,000 | 630,000,000 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 667,000,000 | $ 630,000,000 | ||
Consolidated pension funding contributions for 2020 | 6,000,000 | |||
Expected future pension and retiree medical benefit payments: | ||||
2021 | 47,000,000 | |||
2022 | 47,000,000 | |||
2023 | 48,000,000 | |||
2024 | 48,000,000 | |||
2025 | 49,000,000 | |||
2026-2030 | $ 251,000,000 | |||
Assumptions used in determining the benefit obligations and expense: | ||||
Weighted average discount rate - obligation (as a percent) | 2.40% | 3.10% | 4.10% | |
Weighted average discount rate - expense (as a percent) | 3.10% | 4.10% | 3.60% | |
Weighted average rate of increase in future compensation (as a percent) | 4.20% | 4.20% | 4.30% | |
Weighted average expected long-term rate of return on assets-expense (as a percent) | 4.10% | 4.60% | 4.50% | |
Current target asset allocation | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | $ 0 | $ 4,000,000 | $ 0 | |
North America | Pension Plans | Subsequent Event | ||||
Assumptions used in determining the benefit obligations and expense: | ||||
Weighted average expected long-term rate of return on assets-expense (as a percent) | 3.20% | |||
North America | Retiree Medical | ||||
Pension and Other Postretirement Benefits | ||||
Fair value of plan assets | 0 | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 0 | ||
Pre-tax amounts recognized in accumulated other comprehensive loss | ||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 0 | 0 | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 4,000,000 | 2,000,000 | ||
Pre-tax amounts recognized in accumulated other comprehensive loss, total | 4,000,000 | 2,000,000 | ||
Net periodic benefit cost and other amounts recognized in accumulated other comprehensive loss: | ||||
Service cost | 0 | 0 | 0 | |
Interest cost | 1,000,000 | 1,000,000 | 2,000,000 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 | 0 | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | (1,000,000) | (1,000,000) | |
Defined Benefit Plan, Amortization of Gain (Loss) | (1,000,000) | (1,000,000) | (1,000,000) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | 0 | (1,000,000) | 0 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 1,000,000 | (4,000,000) | (8,000,000) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 0 | 1,000,000 | 1,000,000 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 1,000,000 | 1,000,000 | 1,000,000 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax, Total | 2,000,000 | (2,000,000) | (6,000,000) | |
Defined Benefit Plan, Amount Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Income) Loss, before Tax, Total | 2,000,000 | $ (3,000,000) | $ (6,000,000) | |
Expected future pension and retiree medical benefit payments: | ||||
2021 | 3,000,000 | |||
2022 | 3,000,000 | |||
2023 | 2,000,000 | |||
2024 | 2,000,000 | |||
2025 | 2,000,000 | |||
2026-2030 | $ 9,000,000 | |||
Assumptions used in determining the benefit obligations and expense: | ||||
Weighted average discount rate - obligation (as a percent) | 2.20% | 3.00% | 4.10% | |
Weighted average discount rate - expense (as a percent) | 3.00% | 4.10% | 3.40% | |
Current target asset allocation | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | $ 0 | $ 0 | ||
Quoted Prices in Active Markets (Level 1) | United Kingdom | Pension Plans | ||||
Pension and Other Postretirement Benefits | ||||
Fair value of plan assets | 5,000,000 | 4,000,000 | ||
Significant Other Observable Inputs (Level 2) | United Kingdom | Pension Plans | ||||
Pension and Other Postretirement Benefits | ||||
Fair value of plan assets | $ 434,000,000 | $ 369,000,000 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits (Details 3) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pooled Property Funds | |||
Pension and Other Postretirement Benefits | |||
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember | ||
Funds measured at NAV | |||
Pension and Other Postretirement Benefits | |||
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember | ||
UNITED KINGDOM | Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 491 | $ 418 | $ 383 |
UNITED KINGDOM | Pension Plans | Pooled Equity Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 118 | ||
UNITED KINGDOM | Pension Plans | Cash | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 4 | ||
UNITED KINGDOM | Pension Plans | Pooled Target Return Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 220 | ||
UNITED KINGDOM | Pension Plans | Fixed income: Pooled UK government index-linked securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 32 | ||
UNITED KINGDOM | Pension Plans | Fixed income: Pooled fixed income funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 33 | ||
UNITED KINGDOM | Pension Plans | Liability-driven investment funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 83 | 84 | |
UNITED KINGDOM | Pension Plans | Pooled UK Government Securities Funds Index-Linked Securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 73 | ||
UNITED KINGDOM | Pension Plans | Pooled Global Debt Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 88 | ||
UNITED KINGDOM | Pension Plans | Pooled Diversified Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 55 | ||
UNITED KINGDOM | Pension Plans | Cash and Cash Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 22 | ||
UNITED KINGDOM | Pension Plans | Pooled Property Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 45 | ||
UNITED KINGDOM | Pension Plans | Funds measured at NAV | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 52 | ||
UNITED KINGDOM | Pension Plans | Fair Value, Inputs, Level 1, 2 and 3 | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 439 | 373 | |
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 5 | 4 | |
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | Pooled Equity Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | Cash | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 4 | ||
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | Pooled Target Return Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | Fixed income: Pooled UK government index-linked securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | Fixed income: Pooled fixed income funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | Liability-driven investment funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | Pooled UK Government Securities Funds Index-Linked Securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | Pooled Global Debt Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | Pooled Diversified Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Quoted Prices in Active Markets (Level 1) | Cash and Cash Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 5 | ||
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 434 | 369 | |
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | Pooled Equity Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 118 | ||
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | Cash | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | Pooled Target Return Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 220 | ||
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | Fixed income: Pooled UK government index-linked securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 32 | ||
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | Fixed income: Pooled fixed income funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 33 | ||
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | Liability-driven investment funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 83 | 84 | |
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | Pooled UK Government Securities Funds Index-Linked Securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 73 | ||
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | Pooled Global Debt Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 88 | ||
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | Pooled Diversified Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 55 | ||
UNITED KINGDOM | Pension Plans | Significant Other Observable Inputs (Level 2) | Cash and Cash Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 17 | ||
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | Pooled Equity Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | Cash | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | Pooled Target Return Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | Fixed income: Pooled UK government index-linked securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | Fixed income: Pooled fixed income funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | Liability-driven investment funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | Pooled UK Government Securities Funds Index-Linked Securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | Pooled Global Debt Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | Pooled Diversified Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
UNITED KINGDOM | Pension Plans | Significant Unobservable Inputs (Level 3) | Cash and Cash Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | ||
North America | Pension Plans | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 846 | 790 | $ 673 |
North America | Pension Plans | Fixed income: Other | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 7 | 8 | |
North America | Pension Plans | Fixed income: Government and agency securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 110 | 93 | |
North America | Pension Plans | Fixed income: Corporate bonds and notes | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 499 | 472 | |
North America | Pension Plans | Fixed income: U.S.Treasury bonds and notes | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 37 | 25 | |
North America | Pension Plans | Pooled Equity Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 30 | 35 | |
North America | Pension Plans | Equity mutual funds: Index equity | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 134 | 137 | |
North America | Pension Plans | Cash and cash equivalents | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 30 | 21 | |
North America | Pension Plans | Defined Benefit Plan, Accruals and Payables, Net | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | (1) | ||
North America | Pension Plans | Accruals and payables—net | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | (1) | ||
North America | Pension Plans | Fair Value, Inputs, Level 1, 2 and 3 | Defined Benefit Plan, Assets Before Receivables, Net | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 847 | 791 | |
North America | Pension Plans | Quoted Prices in Active Markets (Level 1) | Defined Benefit Plan, Assets Before Receivables, Net | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 178 | 163 | |
North America | Pension Plans | Quoted Prices in Active Markets (Level 1) | Fixed income: Other | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Quoted Prices in Active Markets (Level 1) | Fixed income: Government and agency securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Quoted Prices in Active Markets (Level 1) | Fixed income: Corporate bonds and notes | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Quoted Prices in Active Markets (Level 1) | Fixed income: U.S.Treasury bonds and notes | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 37 | 25 | |
North America | Pension Plans | Quoted Prices in Active Markets (Level 1) | Pooled Equity Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Quoted Prices in Active Markets (Level 1) | Equity mutual funds: Index equity | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 134 | 137 | |
North America | Pension Plans | Quoted Prices in Active Markets (Level 1) | Cash and cash equivalents | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 7 | 1 | |
North America | Pension Plans | Significant Other Observable Inputs (Level 2) | Defined Benefit Plan, Assets Before Receivables, Net | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 669 | 628 | |
North America | Pension Plans | Significant Other Observable Inputs (Level 2) | Fixed income: Other | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 7 | 8 | |
North America | Pension Plans | Significant Other Observable Inputs (Level 2) | Fixed income: Government and agency securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 110 | 93 | |
North America | Pension Plans | Significant Other Observable Inputs (Level 2) | Fixed income: Corporate bonds and notes | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 499 | 472 | |
North America | Pension Plans | Significant Other Observable Inputs (Level 2) | Fixed income: U.S.Treasury bonds and notes | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Significant Other Observable Inputs (Level 2) | Pooled Equity Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 30 | 35 | |
North America | Pension Plans | Significant Other Observable Inputs (Level 2) | Equity mutual funds: Index equity | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 23 | 20 | |
North America | Pension Plans | Significant Unobservable Inputs (Level 3) | Defined Benefit Plan, Assets Before Receivables, Net | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Significant Unobservable Inputs (Level 3) | Fixed income: Other | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Significant Unobservable Inputs (Level 3) | Fixed income: Government and agency securities | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Significant Unobservable Inputs (Level 3) | Fixed income: Corporate bonds and notes | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Significant Unobservable Inputs (Level 3) | Fixed income: U.S.Treasury bonds and notes | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Significant Unobservable Inputs (Level 3) | Pooled Equity Funds | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Significant Unobservable Inputs (Level 3) | Equity mutual funds: Index equity | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | 0 | 0 | |
North America | Pension Plans | Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Pension and Other Postretirement Benefits | |||
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Employer contribution | $ 22 | $ 20 | $ 18 |
Nonqualified supplemental pension plan | |||
Pension and Other Postretirement Benefits | |||
Accrued expenses | 4 | 2 | |
Other noncurrent liability | 16 | 16 | |
Expenses recognized | $ 2 | $ 1 | $ 1 |
Financing Agreements (Details)
Financing Agreements (Details) - USD ($) | Dec. 13, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Dec. 05, 2019 | Nov. 13, 2019 | Jul. 29, 2016 |
Financing agreements | ||||||||
Long-term Debt, Gross | $ 4,000,000,000 | $ 4,000,000,000 | ||||||
cf_LongtermDebtCurrentMaturitiesGross | 250,000,000 | 0 | ||||||
Unsecured Debt [Abstract] | ||||||||
Long-term debt | 3,961,000,000 | 3,957,000,000 | ||||||
Long-term debt | 3,712,000,000 | 3,957,000,000 | ||||||
Loss on debt extinguishment | 0 | (21,000,000) | $ 0 | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | 500,000,000 | |||||||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 500,000,000 | |||||||
Line of Credit Facility, Interest Rate During Period | 2.05% | |||||||
Current maturities of long-term debt | $ 249,000,000 | 0 | ||||||
cf_LongtermDebtExcludingCurrentMaturitiesGross | 3,750,000,000 | 4,000,000,000 | ||||||
CF Industries | ||||||||
Unsecured Debt [Abstract] | ||||||||
Debt Instrument, Unamortized Discount | 9,000,000 | 10,000,000 | ||||||
Unamortized Debt Issuance Expense | 30,000,000 | 33,000,000 | ||||||
CF Industries | Senior Credit Agreement | ||||||||
Debt Instruments | ||||||||
Available credit | 750,000,000 | |||||||
Line of credit facility, amount outstanding | 0 | $ 0 | ||||||
Letters of credit outstanding, amount | $ 0 | |||||||
Senior Notes | CF Industries | 7.125% due 2020 | ||||||||
Financing agreements | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.125% | |||||||
Unsecured Debt [Abstract] | ||||||||
Long-term debt | $ 512,000,000 | |||||||
Loss on debt extinguishment | $ (12,000,000) | |||||||
Debt Instrument, Face Amount | $ 500,000,000 | |||||||
Senior Notes | CF Industries | 3.450% due 2023 | ||||||||
Financing agreements | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.45% | 3.45% | ||||||
Long-term Debt, Gross | $ 750,000,000 | $ 750,000,000 | ||||||
Unsecured Debt [Abstract] | ||||||||
Long-term debt | $ 748,000,000 | $ 747,000,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.562% | 3.562% | ||||||
Senior Notes | CF Industries | 5.150% due 2034 | ||||||||
Financing agreements | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.15% | 5.15% | ||||||
Long-term Debt, Gross | $ 750,000,000 | $ 750,000,000 | ||||||
Unsecured Debt [Abstract] | ||||||||
Long-term debt | $ 741,000,000 | $ 740,000,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.279% | 5.279% | ||||||
Senior Notes | CF Industries | 4.950% due 2043 | ||||||||
Financing agreements | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.95% | 4.95% | ||||||
Long-term Debt, Gross | $ 750,000,000 | $ 750,000,000 | ||||||
Unsecured Debt [Abstract] | ||||||||
Long-term debt | $ 742,000,000 | $ 742,000,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.031% | 5.031% | ||||||
Senior Notes | CF Industries | 5.375% due 2044 | ||||||||
Financing agreements | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.375% | 5.375% | ||||||
Long-term Debt, Gross | $ 750,000,000 | $ 750,000,000 | ||||||
Unsecured Debt [Abstract] | ||||||||
Long-term debt | $ 741,000,000 | $ 741,000,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.465% | 5.465% | ||||||
Senior Notes | CF Industries | 3.400% due December 2021 | ||||||||
Financing agreements | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.40% | 3.40% | ||||||
Long-term Debt, Gross | $ 250,000,000 | $ 250,000,000 | ||||||
Unsecured Debt [Abstract] | ||||||||
Long-term debt | $ 257,000,000 | 249,000,000 | $ 248,000,000 | |||||
Loss on debt extinguishment | $ (9,000,000) | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.782% | 3.782% | ||||||
Early Repayment of Senior Debt | $ 250,000,000 | |||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 50.00% | |||||||
Debt Instrument, Face Amount | $ 500,000,000 | |||||||
Senior Notes | CF Industries | 4.500% due December 2026 | ||||||||
Financing agreements | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.50% | 4.50% | ||||||
Long-term Debt, Gross | $ 750,000,000 | $ 750,000,000 | ||||||
Unsecured Debt [Abstract] | ||||||||
Long-term debt | $ 740,000,000 | $ 739,000,000 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.759% | 4.759% | ||||||
Revolving Credit Facility | Line of Credit | CF Industries | Amendment No. 4 to the Third Amended and Restated Revolving Credit Agreement | ||||||||
Debt Instruments | ||||||||
Maximum borrowing capacity | $ 750,000,000 | |||||||
Letter of Credit | Line of Credit | ||||||||
Debt Instruments | ||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||
Unsecured Debt [Abstract] | ||||||||
Line of Credit Facility, increase in Maximum Borrowing Capacity | $ 105,000,000 | |||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 125,000,000 | |||||||
Letter of Credit | Line of Credit | CF Industries | July 2016 Credit Agreement Amendment | ||||||||
Debt Instruments | ||||||||
Maximum borrowing capacity | $ 125,000,000 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Expense [Abstract] | |||
Interest on borrowings(1) | $ 185 | $ 223 | $ 228 |
Fees on financing agreements(1) | 8 | 13 | 13 |
Interest on tax liabilities(2) | (14) | 3 | 1 |
Interest capitalized | 0 | (2) | (1) |
Interest expense | $ 179 | $ 237 | $ 241 |
Other Operating-Net (Details)
Other Operating-Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Operating-Net | ||||
Insurance proceeds | $ (37) | $ (37) | $ (10) | |
Loss (gain) on disposal of property, plant and equipment—net(2) | 15 | (40) | 6 | |
Loss (gain) on foreign currency transactions(3) | 5 | (1) | (5) | |
Loss on embedded derivative | 3 | 4 | 1 | |
Other | (3) | 1 | (19) | |
Other operating—net | (17) | (73) | (27) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 45 | (15) | $ 40 | $ (6) |
Nitrogen Complex | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 9 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - MMBTU MMBTU in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair values of derivatives on consolidated balance sheets | ||
Open derivative contracts for natural gas (in MMBtus) | 34.1 | 41.1 |
Percentage of natural gas consumption covered by derivatives | 19.00% |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivative (losses) gains | $ (7) | $ (10) | $ 11 |
Derivatives not designated as cash flow hedges | Natural gas derivatives | Cost of Sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized net gains (losses) | 6 | (14) | 13 |
Realized net (losses) gains | $ (13) | $ 4 | $ (2) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 3) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair values of derivatives on consolidated balance sheets | ||
Cash collateral on deposit with derivative counterparties | $ 0 | $ 0 |
Aggregate fair value of the derivative instruments with credit risk related contingent features in a net liability position | 6,000,000 | 12,000,000 |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Derivatives not designated as cash flow hedges | ||
Fair values of derivatives on consolidated balance sheets | ||
Derivative assets | 1,000,000 | 0 |
Derivative Liability | (7,000,000) | (12,000,000) |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Derivatives not designated as cash flow hedges | Natural gas derivatives | ||
Fair values of derivatives on consolidated balance sheets | ||
Derivative assets | 1,000,000 | 0 |
Derivative Liability | $ 7,000,000 | $ 12,000,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 4) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Cash collateral on deposit with derivative counterparties | $ 0 | $ 0 |
Derivatives not designated as cash flow hedges | ||
Derivative [Line Items] | ||
Derivative assets | 1,000,000 | 0 |
Derivative, Collateral, Obligation to Return Securities | 0 | 0 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 1,000,000 | 0 |
Derivative Liability | (7,000,000) | (12,000,000) |
Derivative Liability, Not Subject to Master Netting Arrangement Deduction | 0 | 0 |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Derivative Liability, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | (7,000,000) | (12,000,000) |
Derivative Assets (Liabilities), at Fair Value, Net | (6,000,000) | (12,000,000) |
Net Derivative (Asset) Liability, Not Subject to Master Netting Arrangement Deduction | 0 | 0 |
Derivative, Collateral, Obligation to Return Cash (Right to Reclaim Cash) | 0 | 0 |
Net Derivative Asset (Liability), Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | $ (6,000,000) | $ (12,000,000) |
Supplemental Balance Sheet Da_3
Supplemental Balance Sheet Data -Accounts Receivable-Net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable—net | $ 265 | $ 242 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable—net | 256 | 229 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable—net | $ 9 | $ 13 |
Supplemental Balance Sheet Da_4
Supplemental Balance Sheet Data -Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 246 | $ 311 |
Raw materials, spare parts and supplies | 41 | 40 |
Inventory, Net | $ 287 | $ 351 |
Supplemental Balance Sheet Da_5
Supplemental Balance Sheet Data -Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $ 85 | $ 78 |
Accrued natural gas costs | 106 | 88 |
Payroll and employee-related costs | 68 | 81 |
Accrued interest | 32 | 32 |
Other | 133 | 158 |
Total accounts payable and accrued expenses | $ 424 | $ 437 |
Supplemental Balance Sheet Da_6
Supplemental Balance Sheet Data - Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Other current liabilities | $ 15 | $ 18 |
Derivative Instruments and Hedges, Liabilities | 7 | 12 |
Unrealized Loss on Embedded Derivative | 13 | 15 |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Unrealized Loss on Embedded Derivative | $ 5 | $ 5 |
Supplemental Balance Sheet Da_7
Supplemental Balance Sheet Data -Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Benefit plans and deferred compensation | $ 256 | $ 298 |
Tax-related liabilities | 155 | 147 |
Unrealized loss on embedded derivative | (13) | (15) |
Other | 20 | 14 |
Other liabilities | $ 444 | $ 474 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($)T | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 01, 2018 | Feb. 07, 2018shares | Dec. 31, 2017USD ($) | |
Noncontrolling Interest [Line Items] | |||||||
Distributions Payable to Minority Interest | $ 0 | $ 0 | |||||
Noncontrolling interest | $ 2,681 | $ 2,740 | 2,773 | 3,105 | |||
Earnings attributable to noncontrolling interests | 115 | 153 | 138 | ||||
Declaration of distributions payable | 139 | ||||||
Declaration of distributions payable | (174) | (186) | (139) | ||||
Minority Interest Distributions to Noncontrolling Interest Holders | 139 | ||||||
Acquisition of noncontrolling interests in TNCLP | (393) | ||||||
TNCLP | |||||||
Noncontrolling Interest [Line Items] | |||||||
Distributions Payable to Minority Interest | 0 | 0 | |||||
Noncontrolling interest | 0 | 333 | |||||
Earnings attributable to noncontrolling interests | 8 | ||||||
Declaration of distributions payable | 10 | ||||||
Declaration of distributions payable | (10) | ||||||
Minority Interest Distributions to Noncontrolling Interest Holders | 10 | ||||||
Acquisition of noncontrolling interests in TNCLP | (331) | ||||||
TNCLP | Terra Nitrogen Company LP | |||||||
Noncontrolling Interest [Line Items] | |||||||
Parent ownership interest (as a percent) | 75.30% | ||||||
Percentage of ownership interest held by outside investors | 24.70% | ||||||
CF Industries Nitrogen, LLC | |||||||
Noncontrolling Interest [Line Items] | |||||||
Distributions Payable to Minority Interest | 0 | 0 | 0 | 0 | |||
Noncontrolling interest | 2,681 | 2,740 | 2,773 | $ 2,772 | |||
Earnings attributable to noncontrolling interests | 115 | 153 | 130 | ||||
Declaration of distributions payable | $ 174 | 186 | 129 | ||||
Right to purchase maximum annual granular urea (in tons) | T | 1,100,000 | ||||||
Maximum annual UAN eligible for purchase at market prices (in tons) | T | 580,000 | ||||||
Declaration of distributions payable | $ (174) | (186) | (129) | ||||
Minority Interest Distributions to Noncontrolling Interest Holders | 174 | 186 | 129 | ||||
Acquisition of noncontrolling interests in TNCLP | $ 0 | 0 | 0 | ||||
Subsequent Event | CF Industries Nitrogen, LLC | |||||||
Noncontrolling Interest [Line Items] | |||||||
Declaration of distributions payable | $ (64) | ||||||
CHS Inc. | CF Industries Nitrogen, LLC | |||||||
Noncontrolling Interest [Line Items] | |||||||
Percentage of ownership interest held by outside investors | 11.00% | ||||||
Terra Nitrogen Company LP | Terra Nitrogen GP Inc | |||||||
Noncontrolling Interest [Line Items] | |||||||
business acquisition, number of units purchased | shares | 4,612,562 | ||||||
Noncontrolling Interests | |||||||
Noncontrolling Interest [Line Items] | |||||||
Declaration of distributions payable | $ (174) | $ (186) | (139) | ||||
Acquisition of noncontrolling interests in TNCLP | $ (331) |
Noncontrolling Interests (Det_2
Noncontrolling Interests (Details 2) | Apr. 02, 2018USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($)T | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 01, 2018 | Feb. 07, 2018shares |
Noncontrolling interest | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance | $ 2,681,000,000 | $ 2,740,000,000 | $ 2,773,000,000 | $ 3,105,000,000 | |||
Earnings attributable to noncontrolling interests | 115,000,000 | 153,000,000 | 138,000,000 | ||||
Declaration of distributions payable | (174,000,000) | (186,000,000) | (139,000,000) | ||||
Acquisition of noncontrolling interests in TNCLP | (393,000,000) | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance | 2,681,000,000 | 2,740,000,000 | 2,773,000,000 | ||||
Distributions Payable to Minority Interest [Roll forward] | |||||||
Distributions Payable to Minority Interest | 0 | 0 | |||||
Declaration of distributions payable | 139,000,000 | ||||||
Minority Interest Distributions to Noncontrolling Interest Holders | (139,000,000) | ||||||
Distributions Payable to Minority Interest | 0 | ||||||
TNCLP | |||||||
Noncontrolling interest | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance | 0 | 333,000,000 | |||||
Earnings attributable to noncontrolling interests | 8,000,000 | ||||||
Declaration of distributions payable | (10,000,000) | ||||||
Acquisition of noncontrolling interests in TNCLP | (331,000,000) | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance | 0 | ||||||
Distributions Payable to Minority Interest [Roll forward] | |||||||
Distributions Payable to Minority Interest | 0 | 0 | |||||
Declaration of distributions payable | 10,000,000 | ||||||
Minority Interest Distributions to Noncontrolling Interest Holders | (10,000,000) | ||||||
Distributions Payable to Minority Interest | 0 | ||||||
TNCLP | Terra Nitrogen Company LP | |||||||
Distributions Payable to Minority Interest [Roll forward] | |||||||
Percentage of ownership interest held by outside investors | 24.70% | ||||||
Parent ownership interest (as a percent) | 75.30% | ||||||
CF Industries Nitrogen, LLC | |||||||
Noncontrolling interest | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance | 2,681,000,000 | 2,740,000,000 | 2,773,000,000 | 2,772,000,000 | |||
Earnings attributable to noncontrolling interests | 115,000,000 | 153,000,000 | 130,000,000 | ||||
Declaration of distributions payable | (174,000,000) | (186,000,000) | (129,000,000) | ||||
Acquisition of noncontrolling interests in TNCLP | 0 | 0 | 0 | ||||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance | 2,681,000,000 | 2,740,000,000 | 2,773,000,000 | ||||
Distributions Payable to Minority Interest [Roll forward] | |||||||
Distributions Payable to Minority Interest | 0 | 0 | 0 | 0 | |||
Declaration of distributions payable | 174,000,000 | 186,000,000 | 129,000,000 | ||||
Minority Interest Distributions to Noncontrolling Interest Holders | (174,000,000) | (186,000,000) | (129,000,000) | ||||
Distributions Payable to Minority Interest | $ 0 | 0 | 0 | ||||
Right to purchase maximum annual granular urea (in tons) | T | 1,100,000 | ||||||
Maximum annual UAN eligible for purchase at market prices (in tons) | T | 580,000 | ||||||
Paid-In Capital | |||||||
Noncontrolling interest | |||||||
Declaration of distributions payable | $ 0 | 0 | 0 | ||||
Acquisition of noncontrolling interests in TNCLP | $ (62,000,000) | (62,000,000) | |||||
Noncontrolling Interests | |||||||
Noncontrolling interest | |||||||
Declaration of distributions payable | $ (174,000,000) | $ (186,000,000) | (139,000,000) | ||||
Acquisition of noncontrolling interests in TNCLP | $ (331,000,000) | ||||||
Terra Nitrogen Company LP | Terra Nitrogen GP Inc | |||||||
Distributions Payable to Minority Interest [Roll forward] | |||||||
business acquisition, number of units purchased | shares | 4,612,562 | ||||||
Acquisition of noncontrolling interests in TNCLP | 388,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ 5,000,000 | ||||||
Subsequent Event | CF Industries Nitrogen, LLC | |||||||
Noncontrolling interest | |||||||
Declaration of distributions payable | $ (64,000,000) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |||
Stock Repurchased and Retired During Period, Shares | 2.6 | 7.6 | 10.9 |
Stock Repurchased and Retired During Period, Value | $ 100 | $ 337 | $ 500 |
stock repurchase accrued but unpaid | $ 33 |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 13, 2019 | Aug. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum amount up to which company common stock is authorized to be repurchased | $ 1,000 | $ 500 | |||
Purchase of treasury stock value | $ 100 | $ 337 | $ 500 | ||
Number of treasury shares retired | 2,800,000 | 18,600,000 | |||
Treasury Stock, Retired, Cost Method, Amount | $ 0 | $ 0 | |||
Treasury Stock, Shares | 102,843 | 0 | |||
Change in common shares issued and outstanding | |||||
Beginning balance | 216,023,826 | 222,818,495 | 233,287,089 | ||
Exercise of stock options | 321,465 | 629,186 | 462,647 | ||
Issuance of restricted stock | 552,362 | 267,165 | 68,803 | ||
Purchase of treasury shares | (2,942,795) | (7,691,020) | (11,000,044) | ||
Ending balance | 213,954,858 | 216,023,826 | 222,818,495 | ||
Paid-In Capital | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase of treasury stock value | $ 0 | $ 0 | $ 0 | ||
Treasury Stock, Retired, Cost Method, Amount | 17 | 110 | |||
Retained Earnings | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase of treasury stock value | 0 | 0 | 0 | ||
Treasury Stock, Retired, Cost Method, Amount | 90 | 733 | |||
Treasury Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase of treasury stock value | 100 | 337 | $ 500 | ||
Treasury Stock, Retired, Cost Method, Amount | $ (107) | $ (843) |
Stockholders' Equity (Details 3
Stockholders' Equity (Details 3) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred Stock | ||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Stockholders' Equity (Details 4
Stockholders' Equity (Details 4) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | $ (366) | |||
Balance at the end of the period | (320) | $ (366) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 5,603 | 5,637 | $ 5,731 | $ 6,684 |
Retained Earnings | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,927 | 1,958 | 2,463 | 2,443 |
Foreign Currency Translation Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (188) | (250) | (145) | |
Gain (loss) arising during period | 0 | 0 | 0 | |
Reclassification to earnings(3) | 0 | 0 | 0 | |
Effect of exchange rate changes and deferred taxes | 44 | 62 | (105) | |
Balance at the end of the period | (144) | (188) | (250) | |
Unrealized Gain (Loss) on Securities | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | 0 | 0 | 1 | |
Gain (loss) arising during period | 0 | 0 | 0 | |
Reclassification to earnings(3) | 0 | 0 | 0 | |
Effect of exchange rate changes and deferred taxes | 0 | 0 | 0 | |
Balance at the end of the period | 0 | 0 | 0 | |
Unrealized Gain (Loss) on Derivatives | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | 5 | 5 | 4 | |
Gain (loss) arising during period | 0 | 0 | 0 | |
Reclassification to earnings(3) | (1) | 0 | 0 | |
Effect of exchange rate changes and deferred taxes | 0 | 0 | 0 | |
Balance at the end of the period | 4 | 5 | 5 | |
Defined Benefit Plans | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (183) | (126) | (123) | |
Gain (loss) arising during period | 1 | (62) | 3 | |
Reclassification to earnings(3) | 6 | (2) | 2 | |
Effect of exchange rate changes and deferred taxes | (4) | 7 | 3 | |
Balance at the end of the period | (180) | (183) | (126) | |
Accumulated Other Comprehensive Loss | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (366) | (371) | (263) | |
Gain (loss) arising during period | 1 | (62) | 3 | |
Reclassification to earnings(3) | (5) | 2 | (2) | |
Effect of exchange rate changes and deferred taxes | 40 | 69 | (102) | |
Balance at the end of the period | (320) | (366) | (371) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (320) | $ (366) | (371) | (263) |
Accounting Standards Update 2016-01 | Retained Earnings | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1 | |||
Accounting Standards Update 2016-01 | Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1 | |||
Accounting Standards Update 2016-01 | Foreign Currency Translation Adjustment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | 0 | |||
Accounting Standards Update 2016-01 | Unrealized Gain (Loss) on Securities | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (1) | |||
Accounting Standards Update 2016-01 | Unrealized Gain (Loss) on Derivatives | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | 0 | |||
Accounting Standards Update 2016-01 | Defined Benefit Plans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | 0 | |||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (1) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (1) | |||
Accounting Standards Update 2018-02 | Foreign Currency Translation Adjustment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | 0 | |||
Accounting Standards Update 2018-02 | Unrealized Gain (Loss) on Securities | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | 0 | |||
Accounting Standards Update 2018-02 | Unrealized Gain (Loss) on Derivatives | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | 1 | |||
Accounting Standards Update 2018-02 | Defined Benefit Plans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (11) | |||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | $ (10) | |||
Accounting Standards Update 2018-12 | Retained Earnings | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 10 | |||
Accounting Standards Update 2018-12 | Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 10 | |||
Accounting Standards Update 2018-12 | Accumulated Other Comprehensive Loss | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes to accumulated other comprehensive income (loss) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (10) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Weighted-Average Remaining Contractual Term | 4 years 2 months 12 days | ||
Options Outstanding, Aggregate Intrinsic Value | $ 15,000,000 | ||
Maximum number of shares reserved for grant awards under the plan | 13,900,000 | ||
Number of shares counted against reserve for determining number of shares of stock available for grant under the Plan for each option | 1 | ||
Number of shares counted against reserve for each share of stock granted, other than option or stock appreciation right | 1.61 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 6,000,000 | ||
Maximum number of underlying shares that may be granted to a participant in any one calendar year | 5,000,000 | ||
Stock options, shares | |||
Outstanding at the beginning of the period (in shares) | 5,059,892 | ||
Exercised (in shares) | (321,465) | (629,186) | (462,647) |
Forfeited (in shares) | (6,527) | ||
Expired (in shares) | (162,859) | ||
Outstanding at the end of the period (in shares) | 4,569,041 | 5,059,892 | |
Exercisable balance at the end of the period (in shares) | 4,569,041 | ||
Stock option activity, weighted-average exercise price | |||
Outstanding at the beginning of the period, Weighted-Average Exercise Price (in dollars per share) | $ 39.88 | ||
Exercised, Weighted-Average Exercise Price (in dollars per share) | 25.95 | ||
Forfeited, Weighted-Average Exercise Price (in dollars per share) | 30.95 | ||
Expired, Weighted-Average Grant Date Fair Value (in dollars per share) | 52.86 | ||
Outstanding at the end of the period, Weighted-Average Exercise Price (in dollars per share) | 40.41 | $ 39.88 | |
Exercisable balance at the end of the period, Weighted-Average Exercise Price (in dollars per share) | $ 40.41 | ||
Selected amounts pertaining to stock option exercises: | |||
Proceeds from issuances of common stock under employee stock plans | $ 5,000,000 | $ 19,000,000 | $ 12,000,000 |
Stock-based compensation costs | |||
Stock-based compensation expense | 26,000,000 | 28,000,000 | 21,000,000 |
Income tax benefit | (6,000,000) | (6,000,000) | (4,000,000) |
Stock-based compensation expense, net of income taxes | 20,000,000 | 22,000,000 | 17,000,000 |
Excess tax benefit from stock-based compensation | $ (3,000,000) | $ (7,000,000) | $ (6,000,000) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (22,000,000) | (11,000,000) | (3,000,000) |
Options Exercisable, Weighted-Average Remaining Contractual Term | 4 years 2 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 15,000,000 | ||
EmployeeServiceShareBasedCompensationTaxBenefitRealizedFromVestingOfEquityInstrumentsOtherThanOptions | $ 5,000,000 | $ 3,000,000 | $ 1,000,000 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual life | 10 years | ||
Selected amounts pertaining to stock option exercises: | |||
Proceeds from issuances of common stock under employee stock plans | $ 8,000,000 | 18,000,000 | 12,000,000 |
Actual tax benefit realized from stock option exercises | 1,000,000 | 3,000,000 | 2,000,000 |
Pre-tax intrinsic value of stock options exercised | $ 4,000,000 | $ 12,000,000 | $ 10,000,000 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 50,895 | 36,567 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 27.51 | $ 41.84 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 50,895 | ||
Selected amounts pertaining to stock option exercises: | |||
Vesting period | 3 years | ||
Restricted stock activity, weighted-average exercise price | |||
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 27.51 | $ 41.84 | $ 40.40 |
Stock-based compensation costs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (36,567) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 41.84 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 | ||
Restricted Stock | Non-management member of Board of Directors | |||
Selected amounts pertaining to stock option exercises: | |||
Vesting period | 1 year | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 614,094 | 693,960 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 43.70 | $ 40.14 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 316,154 | ||
Restricted stock activity, weighted-average exercise price | |||
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 45.23 | $ 41.94 | 43.09 |
Stock-based compensation costs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (372,855) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 38.36 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (23,165) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 44.13 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 445,498 | 304,834 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 45.72 | $ 44.42 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 210,869 | ||
Restricted stock activity, weighted-average exercise price | |||
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 47.93 | $ 43.09 | $ 44.59 |
Stock-based compensation costs | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 7,000,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 3 months 18 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (58,460) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 48.68 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (11,745) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 45.97 | ||
Restricted Stock Units and Restricted Stock Awards [Member] | |||
Stock-based compensation costs | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 14,000,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details 2) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options outstanding and exercisable | |||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 3 | $ 7 | $ 6 |
Options Outstanding, Weighted-Average Remaining Contractual Term | 4 years 2 months 12 days | ||
Options Outstanding, Aggregate Intrinsic Value | $ 15 | ||
Options Exercisable, Aggregate Intrinsic Value | $ 15 | ||
Closing stock price (in dollars per share) | $ 38.71 | ||
Restricted Stock | |||
Options outstanding and exercisable | |||
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | 27.51 | $ 41.84 | $ 40.40 |
Restricted Stock Units (RSUs) | |||
Options outstanding and exercisable | |||
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 45.23 | 41.94 | 43.09 |
Performance Shares | |||
Options outstanding and exercisable | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 7 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 3 months 18 days | ||
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 47.93 | $ 43.09 | $ 44.59 |
Contingencies (Details)
Contingencies (Details) | Apr. 17, 2015EntityInsurance_companyPeoplePlaintiff | Apr. 30, 2013People | Sep. 30, 2016mine | Dec. 31, 2020Litigation_case |
Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Number of people killed | 15 | |||
Number of people injured | 200 | |||
Number of plaintiffs | Plaintiff | 400 | |||
Number of entities that filed claims | Entity | 9 | |||
Number of people that filed claims | 325 | |||
Number of insurance companies that filed claims | Insurance_company | 80 | |||
Settled Litigation | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Claims Settled, Number | Litigation_case | 300 | |||
IDAHO | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, number of mines | mine | 17 |
Segment Disclosures (Narrative)
Segment Disclosures (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment reporting information | |||
Net sales | $ 4,124 | $ 4,590 | $ 4,429 |
Ammonia | |||
Segment reporting information | |||
Net sales | 1,020 | 1,113 | 1,028 |
Granular Urea | |||
Segment reporting information | |||
Net sales | 1,248 | 1,342 | 1,322 |
UAN | |||
Segment reporting information | |||
Net sales | 1,063 | 1,270 | 1,234 |
AN | |||
Segment reporting information | |||
Net sales | 455 | 506 | 460 |
Operating segments | Ammonia | |||
Segment reporting information | |||
Net sales | 1,020 | 1,113 | 1,028 |
Operating segments | Granular Urea | |||
Segment reporting information | |||
Net sales | 1,248 | 1,342 | 1,322 |
Operating segments | UAN | |||
Segment reporting information | |||
Net sales | 1,063 | 1,270 | 1,234 |
Operating segments | AN | |||
Segment reporting information | |||
Net sales | 455 | 506 | 460 |
Operating segments | Other | |||
Segment reporting information | |||
Net sales | $ 338 | $ 359 | $ 385 |
Segment Disclosures (Details)
Segment Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment reporting information | |||
Cost of sales | $ 3,323 | $ 3,416 | $ 3,512 |
Segment data | |||
Gross margin | 801 | 1,174 | 917 |
Total other operating costs and expenses | 189 | 166 | 187 |
Equity in earnings (loss) of operating affiliate | 11 | (5) | 36 |
Operating earnings | 623 | 1,003 | 766 |
Net sales | 4,124 | 4,590 | 4,429 |
Depreciation and amortization | 892 | 875 | 888 |
Ammonia | |||
Segment data | |||
Net sales | 1,020 | 1,113 | 1,028 |
Granular Urea | |||
Segment data | |||
Net sales | 1,248 | 1,342 | 1,322 |
UAN | |||
Segment data | |||
Net sales | 1,063 | 1,270 | 1,234 |
AN | |||
Segment data | |||
Net sales | 455 | 506 | 460 |
Operating segments | Ammonia | |||
Segment reporting information | |||
Cost of sales | 850 | 878 | 867 |
Segment data | |||
Gross margin | 170 | 235 | 161 |
Net sales | 1,020 | 1,113 | 1,028 |
Depreciation and amortization | 176 | 167 | 155 |
Operating segments | Granular Urea | |||
Segment reporting information | |||
Cost of sales | 847 | 861 | 889 |
Segment data | |||
Gross margin | 401 | 481 | 433 |
Net sales | 1,248 | 1,342 | 1,322 |
Depreciation and amortization | 270 | 264 | 276 |
Operating segments | UAN | |||
Segment reporting information | |||
Cost of sales | 949 | 981 | 1,007 |
Segment data | |||
Gross margin | 114 | 289 | 227 |
Net sales | 1,063 | 1,270 | 1,234 |
Depreciation and amortization | 256 | 251 | 270 |
Operating segments | AN | |||
Segment reporting information | |||
Cost of sales | 390 | 399 | 414 |
Segment data | |||
Gross margin | 65 | 107 | 46 |
Net sales | 455 | 506 | 460 |
Depreciation and amortization | 100 | 88 | 85 |
Operating segments | Other | |||
Segment reporting information | |||
Cost of sales | 287 | 297 | 335 |
Segment data | |||
Gross margin | 51 | 62 | 50 |
Net sales | 338 | 359 | 385 |
Depreciation and amortization | 68 | 72 | 67 |
Corporate | |||
Segment data | |||
Depreciation and amortization | $ 22 | $ 33 | $ 35 |
Segment Disclosures (Details 2)
Segment Disclosures (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Enterprise-wide data by geographic region | |||
Revenues | $ 4,124 | $ 4,590 | $ 4,429 |
Property, Plant and Equipment, Net | 7,632 | 8,170 | 8,623 |
United States | |||
Enterprise-wide data by geographic region | |||
Revenues | 3,036 | 3,387 | 3,160 |
Property, Plant and Equipment, Net | 6,527 | 6,991 | 7,426 |
Total Foreign | |||
Enterprise-wide data by geographic region | |||
Revenues | 1,088 | 1,203 | 1,269 |
Property, Plant and Equipment, Net | 1,105 | 1,179 | 1,197 |
Canada | |||
Enterprise-wide data by geographic region | |||
Revenues | 397 | 410 | 379 |
Property, Plant and Equipment, Net | 525 | 558 | 544 |
North America excluding United States and Canada | |||
Enterprise-wide data by geographic region | |||
Revenues | 54 | 53 | 81 |
United Kingdom | |||
Enterprise-wide data by geographic region | |||
Revenues | 332 | 413 | 425 |
Property, Plant and Equipment, Net | 580 | 621 | 653 |
Other foreign | |||
Enterprise-wide data by geographic region | |||
Revenues | $ 305 | $ 327 | $ 384 |
Customer Concentration Risk | Customer One | Revenue Benchmark | |||
Enterprise-wide data by geographic region | |||
Concentration Risk, Percentage | 13.00% | 15.00% | 14.00% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid during the year | |||
Interest—net of interest capitalized | $ 184 | $ 228 | $ 227 |
Income taxes—net of refunds | 111 | (41) | 7 |
Supplemental disclosure of noncash investing and financing activities: | |||
Change in capitalized expenditures in accounts payable and accrued expenses | 1 | (6) | 2 |
Change in accrued share repurchases | $ 0 | $ (33) | $ 33 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) $ in Millions | Dec. 31, 2020USD ($) |
Asset Retirement Obligation [Line Items] | |
Unrecorded AROs | $ 115 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 107 | $ 95 | |
Short-term lease cost | 17 | 26 | |
Variable lease cost | 6 | 4 | |
Total lease cost | 130 | 125 | |
Operating Lease, Payments | 105 | 93 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 80 | 73 | |
Operating lease right-of-use assets | 259 | 280 | |
Current operating lease liabilities | (88) | (90) | |
Operating lease liabilities | 174 | 193 | |
Operating Lease, Liability | $ 262 | $ 283 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years | 5 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% | 4.90% | |
Operating lease payments, 2021 | $ 90 | ||
Operating lease payments, 2022 | 68 | ||
Operating lease payments, 2023 | 47 | ||
Operating lease payments, 2024 | 39 | ||
Operating lease payments, 2025 | 22 | ||
Operating lease payments, Thereafter | 24 | ||
Lessee, Operating Lease, Liability, Payments, Due | 290 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (28) | ||
Lessee, operating lease, lease not yet commenced, amount | $ 6 | ||
Total rent expense for cancelable and noncancelable operating leases | $ 121 | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years | ||
Rail car | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term | 1 year | ||
Rail car | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term | 11 years | ||
Barge charter | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term | 1 year | ||
Barge charter | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term | 6 years | ||
Terminal and warehouse storage | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term | 5 years |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Feb. 17, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 13, 2019 |
Subsequent Event [Line Items] | ||||
Long-term Debt, Gross | $ 4,000 | $ 4,000 | ||
Long-term Debt | 3,961 | 3,957 | ||
Subsidiaries | 3.400% due December 2021 | Senior Notes | ||||
Subsequent Event [Line Items] | ||||
Long-term Debt, Gross | 250 | 250 | ||
Long-term Debt | $ 249 | $ 248 | $ 257 | |
Subsidiaries | 3.400% due December 2021 | Senior Notes | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Long-term Debt | $ 258 |