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Segment Disclosures
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 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 June 30, 2022
Net sales$1,115 $833 $976 $253 $212 $3,389 
Cost of sales442 360 343 151 102 1,398 
Gross margin$673 $473 $633 $102 $110 1,991 
Total other operating costs and expenses(3)
241 
Equity in earnings of operating affiliate28 
Operating earnings$1,778 
Three months ended June 30, 2021
Net sales$459 $433 $434 $136 $126 $1,588 
Cost of sales333 241 296 120 95 1,085 
Gross margin$126 $192 $138 $16 $31 503 
Total other operating costs and expenses64 
Equity in earnings of operating affiliate11 
Operating earnings$450 
Six months ended June 30, 2022
Net sales$1,755 $1,598 $1,991 $476 $437 $6,257 
Cost of sales722 630 688 322 206 2,568 
Gross margin$1,033 $968 $1,303 $154 $231 3,689 
Total other operating costs and expenses(3)
307 
Equity in earnings of operating affiliate54 
Operating earnings$3,436 
Six months ended June 30, 2021
Net sales$665 $832 $666 $241 $232 $2,636 
Cost of sales413 505 526 215 185 1,844 
Gross margin$252 $327 $140 $26 $47 792 
Total other operating costs and expenses117 
Equity in earnings of operating affiliate22 
Operating earnings$697 
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(1)Cost of sales and gross margin for the Ammonia segment for the six months ended June 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 for the three and six months ended June 30, 2022 include $162 million of restructuring charges related to our U.K. operations. See Note 5—United Kingdom Operations, Proposed Restructuring and Impairment Charges for additional information.