Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2014

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Statements of Operations

Condensed, Consolidating Statement of Operations

	Three months ended September 30, 2014
	Parent			CF Industries			Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	106.5		$	987.7		$	(172.8	)	$	921.4
Cost of sales		—			106.5			686.6			(172.8	)		620.3
Gross margin		—			—			301.1			—			301.1
Selling, general and administrative expenses		0.6			8.4			29.2			—			38.2
Other operating—net		(0.1	)		(3.2	)		29.0			—			25.7
Total other operating costs and expenses		0.5			5.2			58.2			—			63.9
Equity in earnings of operating affiliates		—			—			9.4			—			9.4
Operating earnings (losses)		(0.5	)		(5.2	)		252.3			—			246.6
Interest expense		—			65.8			(19.4	)		—			46.4
Interest income		—			(0.1	)		(0.1	)		—			(0.2	)
Net (earnings) of wholly-owned subsidiaries		(131.2	)		(178.1	)		—			309.3			—
Other non-operating—net		—			—			(0.1	)		—			(0.1	)
Earnings before income taxes and equity in earnings of non-operating affiliates		130.7			107.2			271.9			(309.3	)		200.5
Income tax (benefit) provision		(0.2	)		(24.0	)		94.7			—			70.5
Equity in earnings of non-operating affiliates—net of taxes		—			—			10.6			—			10.6
Net earnings		130.9			131.2			187.8			(309.3	)		140.6
Less: Net earnings attributable to noncontrolling interest		—			—			9.7			—			9.7
Net earnings attributable to common stockholders	$	130.9		$	131.2		$	178.1		$	(309.3	)	$	130.9

Condensed, Consolidating Statement of Operations

	Nine months ended September 30, 2014
	Parent			CF Industries			Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	574.2		$	3,764.5		$	(812.0	)	$	3,526.7
Cost of sales		—			390.5			2,614.0			(812.0	)		2,192.5
Gross margin		—			183.7			1,150.5			—			1,334.2
Selling, general and administrative expenses		2.2			10.1			107.1			—			119.4
Other operating—net		(0.1	)		(3.5	)		45.1			—			41.5
Total other operating costs and expenses		2.1			6.6			152.2			—			160.9
Gain on sale of phosphate business		—			761.5			(14.4	)		—			747.1
Equity in earnings of operating affiliates		—			—			27.3			—			27.3
Operating earnings (losses)		(2.1	)		938.6			1,011.2			—			1,947.7
Interest expense		—			181.1			(43.8	)		(0.2	)		137.1
Interest income		—			(0.3	)		(0.6	)		0.2			(0.7	)
Net (earnings) of wholly-owned subsidiaries		(1,153.3	)		(686.0	)		—			1,839.3			—
Other non-operating—net		(0.1	)		—			0.6			—			0.5
Earnings before income taxes and equity in earnings (losses) of non-operating affiliates		1,151.3			1,443.8			1,055.0			(1,839.3	)		1,810.8
Income tax (benefit) provision		(0.7	)		290.4			351.2			—			640.9
Equity in earnings (losses) of non-operating affiliates—net of taxes		—			(0.1	)		15.9			—			15.8
Net earnings		1,152.0			1,153.3			719.7			(1,839.3	)		1,185.7
Less: Net earnings attributable to noncontrolling interest		—			—			33.7			—			33.7
Net earnings attributable to common stockholders	$	1,152.0		$	1,153.3		$	686.0		$	(1,839.3	)	$	1,152.0

Condensed, Consolidating Statement of Operations

	Three months ended September 30, 2013
	Parent			CF Industries			Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	281.1		$	1,207.3		$	(391.4	)	$	1,097.0
Cost of sales		—			268.8			833.4			(391.3	)		710.9
Gross margin		—			12.3			373.9			(0.1	)		386.1
Selling, general and administrative expenses		0.5			2.0			29.8			(0.1	)		32.2
Other operating—net		—			(1.8	)		(18.5	)		—			(20.3	)
Total other operating costs and expenses		0.5			0.2			11.3			(0.1	)		11.9
Equity in earnings of operating affiliates		—			—			11.2			—			11.2
Operating earnings (losses)		(0.5	)		12.1			373.8			—			385.4
Interest expense		—			44.7			(3.6	)		(0.1	)		41.0
Interest income		—			(0.1	)		(1.0	)		0.1			(1.0	)
Net (earnings) of wholly-owned subsidiaries		(234.5	)		(254.6	)		—			489.1			—
Other non-operating—net		—			(0.2	)		(0.1	)		—			(0.3	)
Earnings before income taxes and equity in earnings of non-operating affiliates		234.0			222.3			378.5			(489.1	)		345.7
Income tax (benefit) provision		(0.1	)		(12.2	)		121.3			—			109.0
Equity in earnings of non-operating affiliates—net of taxes		—			—			7.2			—			7.2
Net earnings		234.1			234.5			264.4			(489.1	)		243.9
Less: Net earnings attributable to noncontrolling interest		—			—			9.8			—			9.8
Net earnings attributable to common stockholders	$	234.1		$	234.5		$	254.6		$	(489.1	)	$	234.1

Condensed, Consolidating Statement of Operations

	Nine months ended September 30, 2013
	Parent			CF Industries			Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	885.8		$	4,374.3		$	(1,111.7	)	$	4,148.4
Cost of sales		—			691.3			2,638.3			(1,107.6	)		2,222.0
Gross margin		—			194.5			1,736.0			(4.1	)		1,926.4
Selling, general and administrative expenses		2.2			6.8			112.1			(0.1	)		121.0
Other operating—net		—			7.5			(16.7	)		—			(9.2	)
Total other operating costs and expenses		2.2			14.3			95.4			(0.1	)		111.8
Equity in earnings of operating affiliates		—			—			32.3			—			32.3
Operating earnings (losses)		(2.2	)		180.2			1,672.9			(4.0	)		1,846.9
Interest expense		—			110.2			3.2			(1.0	)		112.4
Interest income		—			(0.7	)		(4.4	)		1.0			(4.1	)
Net (earnings) of wholly-owned subsidiaries		(1,140.3	)		(1,094.2	)		—			2,234.5			—
Other non-operating—net		—			(0.2	)		54.3			—			54.1
Earnings before income taxes and equity in earnings (losses) of non-operating affiliates		1,138.1			1,165.1			1,619.8			(2,238.5	)		1,684.5
Income tax (benefit) provision		(0.7	)		24.7			475.3			—			499.3
Equity in earnings (losses) of non-operating affiliates—net of taxes		—			(0.1	)		6.3			—			6.2
Net earnings		1,138.8			1,140.3			1,150.8			(2,238.5	)		1,191.4
Less: Net earnings attributable to noncontrolling interest		—			—			56.6			(4.0	)		52.6
Net earnings attributable to common stockholders	$	1,138.8		$	1,140.3		$	1,094.2		$	(2,234.5	)	$	1,138.8

Schedule of Condensed Consolidating Statements of Comprehensive Income

Condensed, Consolidating Statement of Comprehensive Income

	Three months ended September 30, 2014
	Parent			CF Industries			Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Net earnings	$	130.9		$	131.2		$	187.8		$	(309.3	)	$	140.6
Other comprehensive losses		(50.0	)		(50.0	)		(50.2	)		100.2			(50.0	)
Comprehensive income		80.9			81.2			137.6			(209.1	)		90.6
Less: Comprehensive income attributable to noncontrolling interest		—			—			9.7			—			9.7
Comprehensive income attributable to common stockholders	$	80.9		$	81.2		$	127.9		$	(209.1	)	$	80.9

Condensed, Consolidating Statement of Comprehensive Income

	Nine months ended September 30, 2014
	Parent			CF Industries			Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Net earnings	$	1,152.0		$	1,153.3		$	719.7		$	(1,839.3	)	$	1,185.7
Other comprehensive income losses		(29.8	)		(29.8	)		(30.0	)		59.8			(29.8	)
Comprehensive income		1,122.2			1,123.5			689.7			(1,779.5	)		1,155.9
Less: Comprehensive income attributable to noncontrolling interest		—			—			33.7			—			33.7
Comprehensive income attributable to common stockholders	$	1,122.2		$	1,123.5		$	656.0		$	(1,779.5	)	$	1,122.2

 Condensed, Consolidating Statement of Comprehensive Income

	Three months ended September 30, 2013
	Parent		CF Industries		Other Subsidiaries		Eliminations			Consolidated
	(in millions)
Net earnings	$	234.1	$	234.5	$	264.4	$	(489.1	)	$	243.9
Other comprehensive income		42.7		42.7		42.7		(85.4	)		42.7
Comprehensive income		276.8		277.2		307.1		(574.5	)		286.6
Less: Comprehensive income attributable to noncontrolling interest		—		—		9.8		—			9.8
Comprehensive income attributable to common stockholders	$	276.8	$	277.2	$	297.3	$	(574.5	)	$	276.8

Condensed, Consolidating Statement of Comprehensive Income

	Nine months ended September 30, 2013
	Parent			CF Industries			Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Net earnings	$	1,138.8		$	1,140.3		$	1,150.8		$	(2,238.5	)	$	1,191.4
Other comprehensive losses		(23.0	)		(23.0	)		(69.7	)		92.0			(23.7	)
Comprehensive income		1,115.8			1,117.3			1,081.1			(2,146.5	)		1,167.7
Less: Comprehensive income attributable to noncontrolling interest		—			—			56.6			(4.7	)		51.9
Comprehensive income attributable to common stockholders	$	1,115.8		$	1,117.3		$	1,024.5		$	(2,141.8	)	$	1,115.8

Schedule of Condensed Consolidating Balance Sheets

Condensed, Consolidating Balance Sheet

	September 30, 2014
	Parent			CF Industries			Other Subsidiaries			Eliminations and Reclassifications			Consolidated
	(in millions)
Assets
Current assets:
Cash and cash equivalents	$	0.1		$	242.4		$	2,408.7		$	—		$	2,651.2
Restricted cash		—			—			145.6			—			145.6
Accounts and notes receivable-net		7.5			2,261.3			254.0			(2,365.9	)		156.9
Inventories—net		—			—			254.8			—			254.8
Deferred income taxes		—			—			39.8			—			39.8
Prepaid income taxes		1.6			—			352.5			(310.6	)		43.5
Other		—			—			46.9			—			46.9
Total current assets		9.2			2,503.7			3,502.3			(2,676.5	)		3,338.7
Property, plant and equipment—net		—			—			5,050.2			—			5,050.2
Deferred income taxes		—			149.6			—			(149.6	)		—
Investments in and advances to affiliates		6,135.5			9,087.5			925.2			(15,223.0	)		925.2
Due from affiliates		570.7			—			1.7			(572.4	)		—
Goodwill		—			—			2,094.0			—			2,094.0
Other assets		—			66.9			184.8			—			251.7
Total assets	$	6,715.4		$	11,807.7		$	11,758.2		$	(18,621.5	)	$	11,659.8
Liabilities and Equity
Current liabilities:
Accounts and notes payable and accrued expenses	$	2,218.3		$	187.7		$	515.6		$	(2,365.9	)	$	555.7
Income taxes payable		—			319.6			—			(310.6	)		9.0
Customer advances		—			—			460.8			—			460.8
Other		—			—			23.3			—			23.3
Total current liabilities		2,218.3			507.3			999.7			(2,676.5	)		1,048.8
Long-term debt		—			4,592.4			—			—			4,592.4
Deferred income taxes		—			—			963.9			(149.6	)		814.3
Due to affiliates		—			572.4			—			(572.4	)		—
Other noncurrent liabilities		—			—			349.0			—			349.0
Equity:
Stockholders' equity:
Preferred stock		—			—			16.3			(16.3	)		—
Common stock		0.5			—			1.1			(1.1	)		0.5
Paid-in capital		1,494.2			(12.6	)		8,283.5			(8,270.9	)		1,494.2
Retained earnings		3,679.1			6,220.6			859.5			(7,080.1	)		3,679.1
Treasury stock		(604.3	)		—			—			—			(604.3	)
Accumulated other comprehensive income (loss)		(72.4	)		(72.4	)		(73.0	)		145.4			(72.4	)
Total stockholders' equity		4,497.1			6,135.6			9,087.4			(15,223.0	)		4,497.1
Noncontrolling interest		—			—			358.2			—			358.2
Total equity		4,497.1			6,135.6			9,445.6			(15,223.0	)		4,855.3
Total liabilities and equity	$	6,715.4		$	11,807.7		$	11,758.2		$	(18,621.5	)	$	11,659.8

Condensed, Consolidating Balance Sheet

	December 31, 2013
	Parent			CF Industries			Other Subsidiaries			Eliminations and Reclassifications			Consolidated
	(in millions)
Assets
Current assets:
Cash and cash equivalents	$	0.1		$	20.4		$	1,690.3		$	—		$	1,710.8
Restricted cash		—			—			154.0			—			154.0
Accounts and notes receivable—net		—			287.1			1,172.2			(1,228.4	)		230.9
Inventories—net		—			3.3			271.0			—			274.3
Deferred income taxes		—			—			60.0			—			60.0
Prepaid income taxes		0.9			—			33.4			(0.9	)		33.4
Assets held for sale		—			68.1			6.2			—			74.3
Other		—			—			92.4			—			92.4
Total current assets		1.0			378.9			3,479.5			(1,229.3	)		2,630.1
Property, plant and equipment—net		—			—			4,101.7			—			4,101.7
Deferred income taxes		—			149.7			—			(149.7	)		—
Investments in and advances to affiliates		5,193.4			8,161.1			925.8			(13,354.3	)		926.0
Due from affiliates		570.7			—			1.7			(572.4	)		—
Goodwill		—			—			2,095.8			—			2,095.8
Noncurrent assets held for sale		—			679.0			—			—			679.0
Other assets		—			60.7			184.8			—			245.5
Total assets	$	5,765.1		$	9,429.4		$	10,789.3		$	(15,305.7	)	$	10,678.1
Liabilities and Equity
Current liabilities:
Accounts and notes payable and accrued expenses	$	40.6		$	354.2		$	715.9		$	(546.6	)	$	564.1
Income taxes payable		—			29.1			45.1			(0.9	)		73.3
Customer advances		—			—			120.6			—			120.6
Liabilities held for sale		—			26.8			—			—			26.8
Other		648.4			0.9			84.9			(690.7	)		43.5
Total current liabilities		689.0			411.0			966.5			(1,238.2	)		828.3
Long-term debt		—			3,098.1			—			—			3,098.1
Deferred income taxes		—			—			982.9			(149.7	)		833.2
Due to affiliates		—			572.4			—			(572.4	)		—
Noncurrent liabilities held for sale		—			154.5			—			—			154.5
Other noncurrent liabilities		—			—			325.6			—			325.6
Equity:
Stockholders' equity:
Preferred stock		—			—			16.4			(16.4	)		—
Common stock		0.6			—			1.1			(1.1	)		0.6
Paid-in capital		1,594.3			(12.6	)		7,823.0			(7,810.4	)		1,594.3
Retained earnings		3,725.6			5,248.6			354.5			(5,603.1	)		3,725.6
Treasury stock		(201.8	)		—			—			—			(201.8	)
Accumulated other comprehensive income (loss)		(42.6	)		(42.6	)		(43.0	)		85.6			(42.6	)
Total stockholders' equity		5,076.1			5,193.4			8,152.0			(13,345.4	)		5,076.1
Noncontrolling interest		—			—			362.3			—			362.3
Total equity		5,076.1			5,193.4			8,514.3			(13,345.4	)		5,438.4
Total liabilities and equity	$	5,765.1		$	9,429.4		$	10,789.3		$	(15,305.7	)	$	10,678.1

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed, Consolidating Statement of Cash Flows

	Nine months ended September 30, 2014
	Parent			CF Industries			Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net earnings	$	1,152.0		$	1,153.3		$	719.7		$	(1,839.3	)	$	1,185.7
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation, depletion and amortization		—			5.0			293.5			—			298.5
Deferred income taxes		—			—			15.6			—			15.6
Stock-based compensation expense		13.4			—			0.2			—			13.6
Excess tax benefit from stock-based compensation		(8.7	)		—			—			—			(8.7	)
Unrealized loss on derivatives		—			—			67.6			—			67.6
Gain on sale of phosphate business		—			(761.5	)		14.4			—			(747.1	)
Loss on disposal of property, plant and equipment		—			—			2.5			—			2.5
Undistributed earnings of affiliates—net		(1,153.3	)		(686.0	)		(39.2	)		1,839.3			(39.2	)
Due to/from affiliates—net		8.7			1.8			(10.5	)		—			—
Changes in:
Accounts and notes receivable—net		(7.5	)		(241.8	)		743.9			(397.5	)		97.1
Inventories—net		—			4.4			9.2			—			13.6
Accrued and prepaid income taxes		(0.7	)		290.4			(359.7	)		—			(70.0	)
Accounts and notes payable and accrued expenses		(3.3	)		270.2			(671.6	)		397.5			(7.2	)
Customer advances		—			—			340.2			—			340.2
Other—net		—			5.4			9.3			—			14.7
Net cash provided by operating activities		0.6			41.2			1,135.1			—			1,176.9
Investing Activities:
Additions to property, plant and equipment		—			(18.3	)		(1,254.4	)		—			(1,272.7	)
Proceeds from sale of property, plant and equipment		—			—			10.2			—			10.2
Proceeds from sale of phosphate business		—			893.1			460.5			—			1,353.6
Sales and maturities of short-term and auction rate securities		—			5.0			—			—			5.0
Deposits to restricted cash funds		—			—			(505.0	)		—			(505.0	)
Withdrawals from restricted cash funds		—			—			513.4			—			513.4
Other—net		—			—			17.4			—			17.4
Net cash provided by (used in) investing activities		—			879.8			(757.9	)		—			121.9
Financing Activities:
Proceeds from long-term borrowings		—			1,494.2			—			—			1,494.2
Short-term debt—net		1,569.9			(2,176.1	)		606.2			—			—
Financing fees		—			(16.0	)		—			—			(16.0	)
Dividends paid on common stock		(181.3	)		(181.3	)		(181.3	)		362.5			(181.4	)
Distributions to/from noncontrolling interest		—			—			(37.8	)		—			(37.8	)
Purchases of treasury stock		(1,591.2	)		—			—			—			(1,591.2	)
Issuances of common stock under employee stock plans		12.0			—			—			—			12.0
Excess tax benefit from stock-based compensation		8.7			—			—			—			8.7
Dividends to/from affiliates		181.3			181.2			—			(362.5	)		—
Other—net		—			(1.0	)		(42.0	)		—			(43.0	)
Net cash provided by (used in) financing activities		(0.6	)		(699.0	)		345.1			—			(354.5	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(3.9	)		—			(3.9	)
Increase in cash and cash equivalents		—			222.0			718.4			—			940.4
Cash and cash equivalents at beginning of period		0.1			20.4			1,690.3			—			1,710.8
Cash and cash equivalents at end of period	$	0.1		$	242.4		$	2,408.7		$	—		$	2,651.2

Condensed, Consolidating Statement of Cash Flows

	Nine months ended September 30, 2013
	Parent			CF Industries			Other Subsidiaries			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net earnings	$	1,138.8		$	1,140.3		$	1,150.8		$	(2,238.5	)	$	1,191.4
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation, depletion and amortization		—			42.7			271.1			—			313.8
Deferred income taxes		—			(5.5	)		41.3			—			35.8
Stock-based compensation expense		9.3			—			0.2			—			9.5
Excess tax benefit from stock-based compensation		(11.4	)		—			—			—			(11.4	)
Unrealized gain on derivatives		—			—			(4.0	)		—			(4.0	)
Loss on disposal of property, plant and equipment		—			—			5.0			—			5.0
Undistributed earnings of affiliates—net		(1,140.3	)		(1,098.3	)		(12.9	)		2,238.6			(12.9	)
Due to/from affiliates—net		11.3			—			(11.3	)		—			—
Changes in:
Accounts and notes receivable—net		(27.3	)		(77.2	)		(92.5	)		241.6			44.6
Inventories—net		—			(7.2	)		(79.1	)		—			(86.3	)
Accrued and prepaid income taxes		(0.8	)		24.1			(256.0	)		—			(232.7	)
Accounts and notes payable and accrued expenses		21.3			188.1			102.0			(242.0	)		69.4
Customer advances		—			—			52.5			—			52.5
Other—net		—			5.2			49.1			0.3			54.6
Net cash provided by operating activities		0.9			212.2			1,216.2			—			1,429.3
Investing Activities:
Additions to property, plant and equipment		—			(48.1	)		(584.8	)		—			(632.9	)
Proceeds from sale of property, plant and equipment		—			—			11.1			—			11.1
Sales and maturities of short-term and auction rate securities		—			6.6			—			—			6.6
Deposits to restricted cash funds		—			—			(111.4	)		—			(111.4	)
Other—net		—			—			(4.3	)		—			(4.3	)
Net cash used in investing activities		—			(41.5	)		(689.4	)		—			(730.9	)
Financing Activities:
Proceeds from long-term borrowings		—			1,498.0			—			—			1,498.0
Short-term debt—net		363.0			(942.3	)		579.3			—			—
Financing fees		—			(14.5	)		—			—			(14.5	)
Dividends paid on common stock		(71.9	)		(801.9	)		(71.9	)		873.8			(71.9	)
Dividends to/from affiliates		801.9			71.9			—			(873.8	)		—
Distributions to/from noncontrolling interest		—			14.3			(78.7	)		—			(64.4	)
Purchases of treasury stock		(1,111.5	)		—			—			—			(1,111.5	)
Acquisitions of noncontrolling interests in CFL		—			(364.9	)		(553.8	)		—			(918.7	)
Issuances of common stock under employee stock plans		6.3			—			—			—			6.3
Excess tax benefit from stock-based compensation		11.4			—			—			—			11.4
Net cash used in financing activities		(0.8	)		(539.4	)		(125.1	)		—			(665.3	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(21.8	)		—			(21.8	)
Increase (decrease) in cash and cash equivalents		0.1			(368.7	)		379.9			—			11.3
Cash and cash equivalents at beginning of period		—			440.8			1,834.1			—			2,274.9
Cash and cash equivalents at end of period	$	0.1		$	72.1		$	2,214.0		$	—		$	2,286.2