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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)  
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from                               to                              
Commission file number 001-32597
CF INDUSTRIES HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware20-2697511
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
4 Parkway North, Suite 400
60015
Deerfield,Illinois (Zip Code)
 (Address of principal executive offices)
(847) 405-2400
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
common stock, par value $0.01 per shareCFNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No
214,475,440 shares of the registrant’s common stock, par value $0.01 per share, were outstanding at November 1, 2021.


CF INDUSTRIES HOLDINGS, INC.

TABLE OF CONTENTS



CF INDUSTRIES HOLDINGS, INC.

PART I—FINANCIAL INFORMATION
ITEM 1.    FINANCIAL STATEMENTS.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 Three months ended 
 September 30,
Nine months ended 
 September 30,
 2021202020212020
 (in millions, except per share amounts)
Net sales $1,362 $847 $3,998 $3,022 
Cost of sales922 764 2,766 2,401 
Gross margin440 83 1,232 621 
Selling, general and administrative expenses52 49 167 154 
Goodwill impairment259  259  
Long-lived and intangible asset impairment236  236  
Other operating—net5 (4)7 8 
Total other operating costs and expenses552 45 669 162 
Equity in earnings of operating affiliate15 2 37 8 
Operating (loss) earnings(97)40 600 467 
Interest expense46 48 140 141 
Interest income   (18)
Loss on debt extinguishment13  19  
Other non-operating—net(19)1 (17)(2)
(Loss) earnings before income taxes(137)(9)458 346 
Income tax (benefit) provision(46)(13)57 33 
Net (loss) earnings(91)4 401 313 
Less: Net earnings attributable to noncontrolling interest94 32 189 83 
Net (loss) earnings attributable to common stockholders$(185)$(28)$212 $230 
Net (loss) earnings per share attributable to common stockholders:
Basic$(0.86)$(0.13)$0.99 $1.07 
Diluted$(0.86)$(0.13)$0.98 $1.07 
Weighted-average common shares outstanding:  
Basic214.9 213.9 215.3 215.0 
Diluted214.9 213.9 216.4 215.3 
Dividends declared per common share$0.30 $0.30 $0.90 $0.90 
See accompanying Notes to Unaudited Consolidated Financial Statements.

1

CF INDUSTRIES HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(Unaudited)
 Three months ended 
 September 30,
Nine months ended 
 September 30,
 2021202020212020
 (in millions)
Net (loss) earnings$(91)$4 $401 $313 
Other comprehensive (loss) income:    
Foreign currency translation adjustment—net of taxes(26)41 (2)(30)
Defined benefit plans—net of taxes6 (3)6 8 
(20)38 4 (22)
Comprehensive (loss) income(111)42 405 291 
Less: Comprehensive income attributable to noncontrolling interest94 32 189 83 
Comprehensive (loss) income attributable to common stockholders$(205)$10 $216 $208 
See accompanying Notes to Unaudited Consolidated Financial Statements.

2

CF INDUSTRIES HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS
(Unaudited)
 September 30, 
 2021
December 31, 
 2020
 (in millions, except share
and per share amounts)
Assets  
Current assets:  
Cash and cash equivalents$757 $683 
Accounts receivable—net386 265 
Inventories418 287 
Prepaid income taxes201 97 
Other current assets52 35 
Total current assets1,814 1,367 
Property, plant and equipment—net7,210 7,632 
Investment in affiliate92 80 
Goodwill2,116 2,374 
Operating lease right-of-use assets261 259 
Other assets273 311 
Total assets$11,766 $12,023 
Liabilities and Equity  
Current liabilities:  
Accounts payable and accrued expenses$537 $424 
Income taxes payable1  
Customer advances375 130 
Current operating lease liabilities93 88 
Current maturities of long-term debt 249 
Other current liabilities9 15 
Total current liabilities1,015 906 
Long-term debt, net of current maturities3,465 3,712 
Deferred income taxes1,160 1,184 
Operating lease liabilities175 174 
Other liabilities337 444 
Equity:  
Stockholders’ equity:  
Preferred stock—$0.01 par value, 50,000,000 shares authorized
  
Common stock—$0.01 par value, 500,000,000 shares authorized, 2021—215,296,025 shares issued and 2020—214,057,701 shares issued
2 2 
Paid-in capital1,370 1,317 
Retained earnings1,933 1,927 
Treasury stock—at cost, 2021—1,100,921 shares and 2020—102,843 shares
(51)(4)
Accumulated other comprehensive loss(316)(320)
Total stockholders’ equity2,938 2,922 
Noncontrolling interest2,676 2,681 
Total equity5,614 5,603 
Total liabilities and equity$11,766 $12,023 
See accompanying Notes to Unaudited Consolidated Financial Statements.
3

CF INDUSTRIES HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
 Common Stockholders
 $0.01 Par
Value
Common
Stock
Treasury
Stock
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’ Equity
Noncontrolling
Interest
Total
Equity
 (in millions, except per share amounts)
Balance as of June 30, 2021$2 $ $1,357 $2,183 $(296)$3,246 $2,712 $5,958 
Net (loss) earnings   (185) (185)94 (91)
Other comprehensive loss    (20)(20) (20)
Purchases of treasury stock (50)   (50) (50)
Acquisition of treasury stock under employee stock plans (1)   (1) (1)
Issuance of $0.01 par value common stock under employee stock plans
  6   6  6 
Stock-based compensation expense  7   7  7 
Cash dividends ($0.30 per share)
   (65) (65) (65)
Distribution declared to noncontrolling interest      (130)(130)
Balance as of September 30, 2021$2 $(51)$1,370 $1,933 $(316)$2,938 $2,676 $5,614 
Balance as of December 31, 2020$2 $(4)$1,317 $1,927 $(320)$2,922 $2,681 $5,603 
Net earnings   212  212 189 401 
Other comprehensive income    4 4  4 
Purchases of treasury stock (50)   (50) (50)
Retirement of treasury stock 13 (2)(11)    
Acquisition of treasury stock under employee stock plans (11)   (11) (11)
Issuance of $0.01 par value common stock under employee stock plans
 1 32   33  33 
Stock-based compensation expense  23   23  23 
Cash dividends ($0.90 per share)
   (195) (195) (195)
Distributions declared to noncontrolling interest      (194)(194)
Balance as of September 30, 2021$2 $(51)$1,370 $1,933 $(316)$2,938 $2,676 $5,614 
(Continued)
CONSOLIDATED STATEMENTS OF EQUITY
(Continued) (Unaudited)
 Common Stockholders
 $0.01 Par
Value
Common
Stock
Treasury
Stock
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’ Equity
Noncontrolling
Interest
Total
Equity
 (in millions, except per share amounts)
Balance as of June 30, 2020$2 $ $1,300 $1,997 $(426)$2,873 $2,703 $5,576 
Net (loss) earnings   (28) (28)32 4 
Other comprehensive income    38 38  38 
Acquisition of treasury stock under employee stock plans (1)   (1) (1)
Issuance of $0.01 par value common stock under employee stock plans
  1   1  1 
Stock-based compensation expense  7   7  7 
Cash dividends ($0.30 per share)
   (64) (64) (64)
Distribution declared to noncontrolling interest      (86)(86)
Balance as of September 30, 2020$2 $(1)$1,308 $1,905 $(388)$2,826 $2,649 $5,475 
Balance as of December 31, 2019$2 $ $1,303 $1,958 $(366)$2,897 $2,740 $5,637 
Net earnings   230  230 83 313 
Other comprehensive loss    (22)(22) (22)
Purchases of treasury stock (100)   (100) (100)
Retirement of treasury stock 107 (17)(90)    
Acquisition of treasury stock under employee stock plans (10)   (10) (10)
Issuance of $0.01 par value common stock under employee stock plans
 2 2   4  4 
Stock-based compensation expense  20   20  20 
Cash dividends ($0.90 per share)
   (193) (193) (193)
Distributions declared to noncontrolling interest      (174)(174)
Balance as of September 30, 2020$2 $(1)$1,308 $1,905 $(388)$2,826 $2,649 $5,475 
See accompanying Notes to Unaudited Consolidated Financial Statements.
4

CF INDUSTRIES HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Nine months ended 
 September 30,
 20212020
 (in millions)
Operating Activities:  
Net earnings$401 $313 
Adjustments to reconcile net earnings to net cash provided by operating activities:  
Depreciation and amortization650 662 
Deferred income taxes(25)(74)
Stock-based compensation expense23 20 
Loss on debt extinguishment19  
Unrealized net gain on natural gas derivatives(18)(12)
Unrealized loss on embedded derivative2 2 
Goodwill impairment259  
Long-lived and intangible asset impairment236  
Gain on sale of EU carbon credits(20) 
Loss on disposal of property, plant and equipment 3 14 
Undistributed earnings of affiliate—net of taxes(15)(2)
Changes in:  
Accounts receivable—net(115)7 
Inventories(120)29 
Accrued and prepaid income taxes(132)50 
Accounts payable and accrued expenses69 (42)
Customer advances245 25 
Other—net(69)(51)
Net cash provided by operating activities1,393 941 
Investing Activities:  
Additions to property, plant and equipment(382)(206)
Proceeds from sale of property, plant and equipment 2 
Distribution received from unconsolidated affiliate 1 
Insurance proceeds for property, plant and equipment 2 
Purchase of investments held in nonqualified employee benefit trust(13) 
Proceeds from sale of investments held in nonqualified employee benefit trust13  
Purchase of U.K. emission credits(10) 
Proceeds from sale of EU emission credits10  
Other—net(1) 
Net cash used in investing activities(383)(201)
Financing Activities:  
Proceeds from short-term borrowings 500 
Repayments of short-term borrowings (500)
Payments of long-term borrowings(518) 
Dividends paid on common stock(195)(193)
Distributions to noncontrolling interest(194)(174)
Purchases of treasury stock(50)(100)
Proceeds from issuances of common stock under employee stock plans32 4 
Cash paid for shares withheld for taxes(11)(10)
Net cash used in financing activities(936)(473)
Effect of exchange rate changes on cash and cash equivalents (1)
Increase in cash and cash equivalents74 266 
Cash and cash equivalents at beginning of period683 287 
Cash and cash equivalents at end of period$757 $553 
See accompanying Notes to Unaudited Consolidated Financial Statements.
5

CF INDUSTRIES HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1.   Background and Basis of Presentation
Our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our nine manufacturing complexes in the United States, Canada and the United Kingdom, an extensive storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. Our principal customers are cooperatives, independent fertilizer distributors, traders, wholesalers and industrial users. Our core product is anhydrous ammonia (ammonia), which contains 82% nitrogen and 18% hydrogen. Our nitrogen products that are upgraded from ammonia are granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Our other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to our industrial customers, and compound fertilizer products (NPKs), which are solid granular fertilizer products for which the nutrient content is a combination of nitrogen, phosphorus and potassium.
All references to “CF Holdings,” “the Company,” “we,” “us” and “our” refer to CF Industries Holdings, Inc. and its subsidiaries, except where the context makes clear that the reference is only to CF Industries Holdings, Inc. itself and not its subsidiaries. All references to “CF Industries” refer to CF Industries, Inc., a 100% owned subsidiary of CF Industries Holdings, Inc.
The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2020, in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting. In the opinion of management, these statements reflect all adjustments, consisting only of normal and recurring adjustments, that are necessary for the fair representation of the information for the periods presented. The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Operating results for any period presented apply to that period only and are not necessarily indicative of results for any future period.
The accompanying unaudited interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and related disclosures included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on February 24, 2021. The preparation of the unaudited interim consolidated financial statements requires us to make use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the unaudited consolidated financial statements and the reported revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, net realizable value of inventories, environmental remediation liabilities, environmental and litigation contingencies, the cost of carbon credits required to meet environmental regulations, the cost of customer incentives, the cost to fulfill contractual commitments to our customers, useful lives of property and identifiable intangible assets, the assumptions used in the evaluation of potential impairments of property, investments, identifiable intangible assets and goodwill, income tax and valuation reserves, allowances for doubtful accounts receivable, the measurement of the fair values of investments for which markets are not active, assumptions used in the determination of the funded status and annual expense of defined benefit pension and other postretirement benefit plans and the valuation of stock-based compensation awards granted to employees.

6

CF INDUSTRIES HOLDINGS, INC.

2.   Revenue Recognition
We track our revenue by product and by geography. See Note 17—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 destination of our shipment) for the three and nine months ended September 30, 2021 and 2020:
AmmoniaGranular UreaUANANOtherTotal
(in millions)
Three months ended September 30, 2021
North America$279 $386 $324 $48 $94 $1,131 
Europe and other65  66 70 30 231 
Total revenue$344 $386 $390 $118 $124 $1,362 
Three months ended September 30, 2020
North America$116 $222 $221 $41 $56 $656 
Europe and other49 27 27 68 20 191 
Total revenue$165 $249 $248 $109 $76 $847 
Nine months ended September 30, 2021
North America$878 $1,218 $949 $144 $263 $3,452 
Europe and other131