	September 30, 2012		December 31, 2011

	(in millions)
Operating equity method investments	$	408.1	$	413.1
Non-operating equity method investments		583.8		515.5

Investments in and advances to affiliates	$	991.9	$	928.6

Our equity method investments included in operating earnings consist of: (1) a 50% ownership interest in Point Lisas Nitrogen Limited (PLNL), which operates an ammonia production facility in the Republic of Trinidad and Tobago; and (2) a 50% interest in an ammonia storage joint venture located in Houston, Texas. We include our share of the net earnings from these investments as an element of earnings from operations because these operations provide additional production and storage capacity to our operations and are integrated with our other supply chain and sales activities in the nitrogen segment.

The combined results of operations and financial position for our operating equity method investments are summarized below:

	Three months ended September 30,				Nine months ended September 30,

	2012		2011		2012		2011
	(in millions)
Condensed statement of operations information:
Net sales	$	67.8	$	116.4	$	249.0	$	272.7

Net earnings	$	20.5	$	39.8	$	83.0	$	93.5

Equity in earnings of operating affiliates	$	10.2	$	15.0	$	39.5	$	40.7

	September 30, 2012		December 31, 2011

	(in millions)
Condensed balance sheet information:
Current assets	$	117.0	$	126.6
Long-term assets		160.1		147.2

Total assets	$	277.1	$	273.8

Current liabilities	$	42.6	$	41.1
Long-term liabilities		23.5		24.2
Equity		211.0		208.5

Total liabilities and equity	$	277.1	$	273.8

The carrying value of these investments at September 30, 2012 was $408.1 million, which was $302.6 million more than our share of the affiliates' book value. The excess is primarily attributable to the purchase accounting impact of our acquisition of the investment in PLNL and reflects primarily the revaluation of property, plant and equipment, the value of an exclusive natural gas contract and goodwill. The increased bases for property, plant and equipment and the gas contract are being depreciated over a remaining period of approximately 22 years and 12 years, respectively. Our equity in earnings of operating affiliates is different from our ownership interest in income reported by the unconsolidated subsidiaries due to amortization of basis differences.

We have transactions in the normal course of business with PLNL reflecting our obligation to purchase 50% of the ammonia produced by PLNL at current market prices. Our ammonia purchases from PLNL totaled $31.4 million and $113.5 million for the three and nine months ended September 30, 2012, respectively, and $51.6 million and $122.2 million for the three and nine months ended September 30, 2011, respectively.

Our non-operating equity method investments consist of: (1) a 50% ownership of KEYTRADE AG (Keytrade), a fertilizer trading company headquartered near Zurich, Switzerland; and (2) a 50% ownership in GrowHow UK Limited (GrowHow), which operates nitrogen production facilities in the United Kingdom. We account for these investments as non-operating equity method investments, and do not include the net earnings of these investments in earnings from operations since these operations do not provide additional capacity to us, nor are these operations integrated within our supply chain.

The combined results of operations and financial position of our non-operating equity method investments are summarized below:

	Three months ended September 30,				Nine months ended September 30,

	2012		2011		2012		2011
	(in millions)
Condensed statement of operations information:
Net sales	$	685.6	$	896.8	$	2,182.6	$	2,178.2

Net earnings	$	54.2	$	39.7	$	116.9	$	89.7

Equity in earnings of non-operating affiliates—net of taxes	$	23.9	$	16.7	$	48.8	$	35.0

	September 30, 2012		December 31, 2011

	(in millions)
Condensed balance sheet information:
Current assets	$	759.1	$	504.2
Long-term assets		290.1		293.4

Total assets	$	1,049.2	$	797.6

Current liabilities	$	472.2	$	339.5
Long-term liabilities		139.9		149.4
Equity		437.1		308.7

Total liabilities and equity	$	1,049.2	$	797.6

In conjunction with our investment in Keytrade, we provided financing to Keytrade in the form of subordinated notes that mature on September 30, 2017 and bear interest at LIBOR plus 1.00 percent. At September 30, 2012 and December 31, 2011, the amount of the outstanding advances to Keytrade on our consolidated balance sheets was $12.4 million. The carrying value of our advances to Keytrade approximates fair value.

During the three months ended September 30, 2012, GrowHow provided $40.5 million of advances to us under a short term loan agreement. The advances are due at various dates as specified in the agreement, bear interest at LIBOR plus 0.20 percent, and are included in our consolidated balance sheet in other current liabilities. The carrying value of our advances from GrowHow approximates fair value.

Excluding the advances to Keytrade and from GrowHow, the carrying value of our non-operating equity method investments at September 30, 2012 was $571.4 million, which was $352.7 million more than our share of the affiliates' book value. The excess is primarily attributable to the purchase accounting impact of our acquisition of the investments in GrowHow and Keytrade and reflects primarily the revaluation of property, plant and equipment, identifiable intangibles and goodwill. The increased basis for property, plant and equipment and identifiable intangibles are being depreciated over remaining periods ranging from 2 to 14 years. Our equity in earnings of non-operating affiliates-net of taxes is different than our ownership interest in their net earnings due to the amortization of basis differences.

At September 30, 2012, the amount of our consolidated retained earnings that represents our undistributed earnings of non-operating equity method investments is $55.3 million.