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Segment Disclosures
 12 Months Ended
Dec. 31, 2024
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 chief operating decision maker (CODM) is our President and Chief Executive Officer, who uses gross margin to evaluate segment performance and allocate resources. The CODM meets periodically with other members of senior management to analyze segment performance, including comparing actual results to projected results, with consideration to the costs incurred to produce and deliver the product. In addition, our CODM uses gross margin by reportable segment to make key operating decisions, such as the determination of capital expenditures and the allocation of operating budgets, to help guide strategic decisions to align with company-wide goals. 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 the CODM. The ammonia and other products that are upgraded into Granular Urea, UAN, AN and Other products are transferred at cost into the results of those products.
Our assets, with the exception of goodwill, are not monitored by or reported to our CODM by segment; therefore, we do not present total assets by segment. Goodwill by segment is presented in Note 9—Goodwill and Other Intangible Assets.
Segment data for gross margin, including sales and cost of sales, which also includes significant expenses, for the years ended December 31, 2024, 2023 and 2022 are presented in the tables below.
Year ended December 31,
 202420232022
 (in millions)
Ammonia(1)
Net sales$1,736 $1,679 $3,090 
Cost of sales:
Natural gas, including the impact of realized derivatives(2)
283 407 660 
Unrealized net mark-to-market (gain) loss on natural gas derivatives(13)(11)13 
Depreciation and amortization(3)
269 174 166 
Distribution and storage(4)
187 192 155 
Freight(5)
50 42 50 
Other segment items(6)
467 334 447 
Total cost of sales
1,243 1,138 1,491 
Gross margin$493 $541 $1,599 
Granular Urea
Net sales$1,600 $1,823 $2,892 
Cost of sales:
Natural gas, including the impact of realized derivatives(2)
241 363 632 
Unrealized net mark-to-market (gain) loss on natural gas derivatives(9)(11)13 
Depreciation and amortization(3)
284 285 272 
Distribution and storage(4)
9 10 8 
Freight(5)
32 43 39 
Other segment items(6)
369 320 364 
Total cost of sales
926 1,010 1,328 
Gross margin$674 $813 $1,564 
UAN
Net sales$1,678 $2,068 $3,572 
Cost of sales:
Natural gas, including the impact of realized derivatives(2)
234 367 612 
Unrealized net mark-to-market (gain) loss on natural gas derivatives(10)(11)14 
Depreciation and amortization(3)
268 288 269 
Distribution and storage(4)
60 67 68 
Freight(5)
142 156 180 
Other segment items(6)
375 384 346 
Total cost of sales
1,069 1,251 1,489 
Gross margin$609 $817 $2,083 
Year ended December 31,
202420232022
(in millions)
AN
Net sales$419 $497 $845 
Cost of sales:
Natural gas, including the impact of realized derivatives(2)
34 51 296 
Unrealized net mark-to-market gain on natural gas derivatives
(1)(2)(2)
Depreciation and amortization(3)
39 48 61 
Distribution and storage(4)
1 2 2 
Freight(5)
29 24 40 
Other segment items(6)
238 236 200 
Total cost of sales
340 359 597 
Gross margin$79 $138 $248 
Other(7)
Net sales$503 $564 $787 
Cost of sales:
Natural gas, including the impact of realized derivatives(2)
37 63 159 
Unrealized net mark-to-market (gain) loss on natural gas derivatives(2)(4)3 
Depreciation and amortization(3)
61 64 67 
Distribution and storage(4)
1 3 2 
Freight(5)
59 65 61 
Other segment items(6)
146 137 128 
Total cost of sales
302 328 420 
Gross margin$201 $236 $367 
Consolidated
Net sales$5,936 $6,631 $11,186 
Cost of sales:
Natural gas, including the impact of realized derivatives(2)
829 1,251 2,359 
Unrealized net mark-to-market (gain) loss on natural gas derivatives(35)(39)41 
Depreciation and amortization(3)
921 859 835 
Distribution and storage(4)
258 274 235 
Freight(5)
312 330 370 
Other segment items(6)
1,595 1,411 1,485 
Total cost of sales
3,880 4,086 5,325 
Gross margin$2,056 $2,545 $5,861 
Total other operating costs and expenses(8)
314 307 558 
Equity in earnings (loss) of operating affiliate(9)
4 (8)94 
Operating earnings$1,746 $2,230 $5,397 
_______________________________________________________________________________
(1)Ammonia segment results include the operating results of our Waggaman facility from the acquisition date of December 1, 2023.
(2)Natural gas costs include the impact of realized gains and losses on natural gas derivatives settled during the period.
(3)For the years ended December 31, 2024, 2023 and 2022, depreciation and amortization does not include $34 million, $13 million and $15 million, respectively, of depreciation and amortization allocated to Corporate, which includes amortization of definite-lived intangible assets. For the years ended December 31, 2024 and 2023, depreciation and amortization does not include $30 million and $3 million, respectively, related to amortization of the supply contract liability, which is recognized in net sales. See Note 6—Acquisition of Waggaman Ammonia Production Facility and Note 9—Goodwill and Other Intangible Assets for additional information.
(4)Distribution and storage costs consist of the cost of freight required to transport finished products from our manufacturing facilities to our distribution facilities and the costs to operate our network of distribution facilities in North America.
(5)Freight costs consist of the costs incurred by us to deliver products from one of our plants or distribution facilities to the customer. Freight costs are generally charged to the customer and included in net sales. In situations when control of the product transfers upon loading and the customer requests that we arrange delivery of the product, the amount of freight included in net sales is considered freight revenue. See Note 4—Revenue Recognition for additional information.
(6)Other segment items is primarily comprised of payroll, services, materials and supplies, and utilities at our manufacturing facilities.
(7)Other consists of all other products not included in our Ammonia, Granular Urea, UAN, or AN segments. All other products primarily include DEF, urea liquor, nitric acid and aqua ammonia.
(8)Total other operating costs and expenses for the year ended December 31, 2022 include $258 million of asset impairment and restructuring charges related to our U.K. operations. See Note 7—United Kingdom Operations Restructuring and Impairment Charges for additional information.
(9)Equity in loss of operating affiliate for the year ended December 31, 2023 includes an impairment of our equity method investment in PLNL of $43 million. See Note 10—Equity Method Investment for additional information.

Enterprise-wide data by geographic region is as follows:
 Year ended December 31,
202420232022
(in millions)
Sales by geographic region (based on destination of shipments):
  
United States$4,419 $4,856 $8,212 
Foreign:
Canada534 607 849 
North America, excluding U.S. and Canada72 75 149 
United Kingdom327 346 642 
Other foreign584 747 1,334 
Total foreign1,517 1,775 2,974 
Consolidated$5,936 $6,631 $11,186 
 December 31,
 202420232022
 (in millions)
Property, plant and equipment—net by geographic region:
  
United States$6,172 $6,538 $5,812 
Foreign:
Canada426 466 506 
United Kingdom137 137 119 
Total foreign563 603 625 
Consolidated$6,735 $7,141 $6,437 
Our principal customers are cooperatives, retailers, independent fertilizer distributors, traders, wholesalers and industrial users. In 2024, 2023 and 2022, CHS accounted for approximately 12%, 13% and 13% of our consolidated net sales, respectively. See Note 19—Noncontrolling Interest for additional information.