Company: CF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001324404-25-000015
Chunk: 82

Company: CF Industries Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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ular 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. Segment data for gross margin, including sales and cost of sales, which also includes significant expenses, for the three months ended March 31, 2025 and 2024 are presented in the tables below. Three months ended  March 31, 20252024 (in millions)AmmoniaNet sales$520 $402 Cost of sales:Natural gas, including the impact of realized derivatives(1)110 86 Unrealized net mark-to-market loss (gain) on natural gas derivatives1 (12)Depreciation and amortization(2)55 79 Distribution and storage(3)37 35 Freight(4)15 14 Other segment items(5)116 135 Total cost of sales334 337 Gross margin$186 $65 Granular UreaNet sales$439 $407 Cost of sales:Natural gas, including the impact of realized derivatives(1)95 76 Unrealized net mark-to-market gain on natural gas derivatives— (9)Depreciation and amortization(2)71 69 Distribution and storage(3)3 2 Freight(4)7 10 Other segment items(5)90 105 Total cost of sales266 253 Gross margin$173 $154 

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Table of ContentsCF INDUSTRIES HOLDINGS, INC. 

Three months