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Segment Disclosures
3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
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. Segment data for sales, cost of sales and gross margin for the three months ended March 31, 2023 and 2022 are presented in the table below.
Ammonia
Granular Urea(1)
UAN(1)
AN(1)
Other(1)
Consolidated
(in millions)
Three months ended March 31, 2023
Net sales$424 $611 $667 $159 $151 $2,012 
Cost of sales280 327 346 104 92 1,149 
Gross margin$144 $284 $321 $55 $59 863 
Total other operating costs and expenses54 
Equity in earnings of operating affiliate17 
Operating earnings$826 
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 expense66 
Equity in earnings of operating affiliate26 
Operating earnings$1,658 
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(1)The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results.