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Segment Disclosures
 9 Months Ended
Sep. 30, 2024
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 and nine months ended September 30, 2024 and 2023 are presented in the table below.
Ammonia
Granular Urea(1)
UAN(1)
AN(1)
Other(1)
Consolidated
(in millions)
Three months ended September 30, 2024
Net sales$353 $388 $406 $106 $117 $1,370 
Cost of sales270 228 272 82 74 926 
Gross margin$83 $160 $134 $24 $43 444 
Total other operating costs and expenses82 
Equity in earnings of operating affiliate2 
Operating earnings$364 
Three months ended September 30, 2023
Net sales$235 $360 $435 $114 $129 $1,273 
Cost of sales214 226 302 79 75 896 
Gross margin$21 $134 $133 $35 $54 377 
Total other operating costs and expenses97 
Equity in losses of operating affiliate(2)
(36)
Operating earnings$244 
Nine months ended September 30, 2024
Net sales$1,164 $1,252 $1,306 $318 $372 $4,412 
Cost of sales869 711 813 262 225 2,880 
Gross margin$295 $541 $493 $56 $147 1,532 
Total other operating costs and expenses228 
Equity in earnings of operating affiliate1 
Operating earnings$1,305 
Nine months ended September 30, 2023
Net sales$1,184 $1,431 $1,650 $377 $418 $5,060 
Cost of sales797 775 937 264 243 3,016 
Gross margin$387 $656 $713 $113 $175 2,044 
Total other operating costs and expenses228 
Equity in losses of operating affiliate(2)
(12)
Operating earnings$1,804 
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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.
(2)Equity in losses of operating affiliate for the three and nine months ended September 30, 2023 includes an impairment of our equity method investment in PLNL of $43 million. See Note 8—Equity Method Investment for additional information.