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Segment Disclosures
 9 Months Ended
Sep. 30, 2021
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 the three and nine months ended September 30, 2021 and 2020 are presented in the tables below.
Ammonia(1)
Granular Urea(2)
UAN(2)
AN(2)
Other(2)
Consolidated
(in millions)
Three months ended September 30, 2021
Net sales$344 $386 $390 $118 $124 $1,362 
Cost of sales262 200 233 122 105 922 
Gross margin$82 $186 $157 $(4)$19 440 
Total other operating costs and expenses(3)
552 
Equity in earnings of operating affiliate15 
Operating loss$(97)
Three months ended September 30, 2020
Net sales$165 $249 $248 $109 $76 $847 
Cost of sales174 183 237 96 74 764 
Gross margin$(9)$66 $11 $13 $2 83 
Total other operating costs and expenses45 
Equity in earnings of operating affiliate2 
Operating earnings$40 
Nine months ended September 30, 2021
Net sales$1,009 $1,218 $1,056 $359 $356 $3,998 
Cost of sales675 705 759 337 290 2,766 
Gross margin$334 $513 $297 $22 $66 1,232 
Total other operating costs and expenses(3)
669 
Equity in earnings of operating affiliate37 
Operating earnings$600 
Nine months ended September 30, 2020
Net sales$722 $915 $791 $343 $251 $3,022 
Cost of sales609 612 675 290 215 2,401 
Gross margin$113 $303 $116 $53 $36 621 
Total other operating costs and expenses162 
Equity in earnings of operating affiliate8 
Operating earnings$467 
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(1)Cost of sales and gross margin for the ammonia segment in the nine months ended September 30, 2021, include a $112 million gain on the net settlement of certain natural gas contracts with our suppliers. See Note 13—Derivative Financial Instruments for additional information.
(2)The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results.
(3)Total other operating costs and expenses in the three and nine months ended September 30, 2021 includes goodwill, long-lived and intangible asset impairment charges of $495 million.