Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 12

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 12
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2025202420252024Pre-TaxAfter-TaxPre-TaxAfter-TaxPre-TaxAfter-TaxPre-TaxAfter-Tax(in millions)Unrealized net mark-to-market (gain) loss on natural gas derivatives(1)$— $— $(1)$(1)$2 $1 $(34)$(26)(Gain) loss on foreign currency transactions(2)(3)(3)(3)— — (1)(3)1 1 Blue Point joint venture construction costs(2)(3)2 2 — — 2 2 — — Loss on sale of Ince facility(4)— — — — 23 21 — — Integration costs— — 1 1 — — 4 3 

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(1)Included in cost of sales in our consolidated statements of operations.

(2)Included in other operating—net in our consolidated statements of operations.

(3)Includes results related to the Blue Point joint venture, of which we have a 40% equity interest. The after-tax impact for amounts related to the Blue Point joint venture does not include a tax provision on the 60% attributable to noncontrolling interests.

(4)Included in U.K. operations restructuring in our consolidated statement of operations.

Unrealized net mark-to-market (gain) loss on natural gas derivatives

Natural gas is the largest and most volatile single component of the manufacturing cost for our nitrogen-based products. At certain times, we have managed the risk of changes in natural gas prices through the use of derivative financial instruments. The derivatives that we use for this purpose are primarily natural gas fixed price swaps, basis swaps and options. We use natural gas derivatives as an economic hedge of natural gas price risk, but without the application of hedge accounting. This can result in volatility in reported earnings due to the unrealized mark-to-market adjustments that occur from changes in the value of the derivatives, which are reflected in cost of sales in our consolidated statements of operations. In the three months ended June 30, 2024, we recognized an unrealized net mark-to-market gain on natural gas derivatives of $1 million. In the six months ended June 30, 2025, we recognized an unrealized net mark-to-market loss on natural gas derivatives of $2 million compared to a gain of $34 million in the six months ended June 30, 2024.

(Gain