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Segment Disclosures
 3 Months Ended
Mar. 31, 2022
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 primarily of selling, general and administrative expenses and other operating—net) and non-operating expenses (consisting primarily of interest and income taxes) are centrally managed and are not included in the measurement of segment profitability reviewed by management.
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 months ended March 31, 2022 and 2021 are presented in the table below.
Ammonia(1)
Granular Urea(2)
UAN(2)
AN(2)
Other(2)
Consolidated
(in millions)
Three months ended March 31, 2022
Net sales$640 $765 $1,015 $223 $225 $2,868 
Cost of sales280 270 345 171 104 1,170 
Gross margin$360 $495 $670 $52 $121 1,698 
Total other operating costs and expenses66 
Equity in earnings of operating affiliate26 
Operating earnings$1,658 
Three months ended March 31, 2021
Net sales$206 $399 $232 $105 $106 $1,048 
Cost of sales80 264 230 95 90 759 
Gross margin$126 $135 $2 $10 $16 289 
Total other operating costs and expenses53 
Equity in earnings of operating affiliate11 
Operating earnings$247 
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(1)Cost of sales and gross margin for the Ammonia segment for the three months ended March 31, 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.