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Revenue Recognition
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
We track our revenue by product and by geography. See Note 15—Segment Disclosures for our revenue by reportable segment, which are Ammonia, Granular Urea, UAN, AN and Other. The following table summarizes our revenue by product and by geography (based on the destination of our shipment) for the three and nine months ended September 30, 2025 and 2024:
AmmoniaGranular UreaUANANOtherTotal
(in millions)
Three months ended September 30, 2025
North America$330 $423 $406 $49 $120 $1,328 
Europe and other127 — 111 73 20 331 
Total revenue$457 $423 $517 $122 $140 $1,659 
Three months ended September 30, 2024
North America$297 $328 $313 $53 $94 $1,085 
Europe and other56 60 93 53 23 285 
Total revenue$353 $388 $406 $106 $117 $1,370 
Nine months ended September 30, 2025
North America$1,111 $1,409 $1,372 $153 $342 $4,387 
Europe and other357 — 225 187 56 825 
Total revenue$1,468 $1,409 $1,597 $340 $398 $5,212 
Nine months ended September 30, 2024
North America$961 $1,180 $1,108 $152 $310 $3,711 
Europe and other203 72 198 166 62 701 
Total revenue$1,164 $1,252 $1,306 $318 $372 $4,412 

As of September 30, 2025 and December 31, 2024, we had $477 million and $118 million, respectively, in customer advances on our consolidated balance sheets. During the nine months ended September 30, 2025 and 2024, substantially all of the customer advances at the beginning of each respective period were recognized as revenue.
We offer cash incentives to certain customers generally based on the volume of their purchases over the fertilizer year ending June 30. Our cash incentives do not provide an option to the customer for additional product. The balances of customer incentives accrued as of September 30, 2025 and December 31, 2024 were not material.
We have certain customer contracts with performance obligations where if the customer does not take the required amount of product specified in the contract, then the customer is required to make a payment to us, the amount of which may vary based upon the terms and conditions of the applicable contract. As of September 30, 2025, excluding contracts with original durations of less than one year, and based on the minimum product tonnage to be sold and current market price estimates, our remaining performance obligations under these contracts were approximately $2.3 billion. We expect to recognize approximately 8% of these performance obligations as revenue in the remainder of 2025, approximately 43% as revenue during 2026-2028, approximately 16% as revenue during 2029-2031, and the remainder as revenue thereafter. Subject to the terms and conditions of the applicable contracts, if these customers do not satisfy their purchase obligations under such contracts, the minimum amount that they would be required to pay to us under such contracts, in the aggregate, was approximately $1.2 billion as of September 30, 2025. Other than the performance obligations described above, any performance obligations with our customers that were unfulfilled or partially filled at December 31, 2024 will be satisfied in 2025.
Supply Contract Liability
In connection with our December 1, 2023 acquisition of the Waggaman ammonia production facility, we entered into a long-term ammonia offtake agreement providing for us to supply up to 200,000 tons of ammonia per year to Dyno Nobel, Inc. (the Supply Contract). The terms of the Supply Contract were determined to be unfavorable compared to market as of the acquisition date. As a result, we recorded an intangible liability with an acquisition date fair value of $757 million, which is being amortized to net sales over the estimated life of the Supply Contract of 25 years. For both the three months ended September 30, 2025 and 2024, we amortized $8 million of the Supply Contract liability into net sales. For both the nine months ended September 30, 2025 and 2024, we amortized $23 million of the Supply Contract liability into net sales. As of September 30, 2025 and December 31, 2024, we had $701 million and $724 million, respectively, in Supply Contract liability on our consolidated balance sheets. Estimated amortization of the Supply Contract liability for the remainder of 2025 is approximately $7 million and for each of the fiscal years 2026 to 2030 is approximately $30 million.