FORM 10-K |
(Mark One) | |
ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2016 | |
OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 20-2697511 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
4 Parkway North, Suite 400, Deerfield, Illinois | 60015 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant's telephone number, including area code (847) 405-2400 | ||
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Name of each exchange on which registered | |
Common Stock, $0.01 par value per share Preferred Stock Purchase Rights | New York Stock Exchange |
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
• | four U.S. nitrogen fertilizer manufacturing facilities, located in Donaldsonville, Louisiana (the largest nitrogen fertilizer complex in the world); Port Neal, Iowa; Yazoo City, Mississippi; and Woodward, Oklahoma. These facilities are owned by CF Industries Nitrogen, LLC (CFN), in which we own a majority equity interest and CHS Inc. (CHS) owns a minority equity interest. See Note 17—Noncontrolling Interests for additional information on our strategic venture with CHS; |
• | an approximately 75.3% interest in Terra Nitrogen Company, L.P. (TNCLP), a publicly traded limited partnership of which we are the sole general partner and the majority limited partner and which, through its subsidiary Terra Nitrogen, Limited Partnership (TNLP), operates a nitrogen fertilizer manufacturing facility in Verdigris, Oklahoma; |
• | two Canadian nitrogen fertilizer manufacturing facilities, located in Medicine Hat, Alberta (the largest nitrogen fertilizer complex in Canada) and Courtright, Ontario; |
• | two United Kingdom nitrogen manufacturing complexes, located in Ince and Billingham; |
• | an extensive system of terminals and associated transportation equipment located primarily in the midwestern United States; and |
• | a 50% interest in Point Lisas Nitrogen Limited (PLNL), an ammonia production joint venture located in the Republic of Trinidad and Tobago that we account for under the equity method. |
2016 | 2015 | 2014 | ||||||||||||||||||
Tons | Net Sales | Tons | Net Sales | Tons | Net Sales | |||||||||||||||
(tons in thousands; dollars in millions) | ||||||||||||||||||||
Nitrogen Product Segments | ||||||||||||||||||||
Ammonia | 2,874 | $ | 981 | 2,995 | $ | 1,523 | 2,969 | $ | 1,576 | |||||||||||
Granular urea | 3,597 | 831 | 2,460 | 788 | 2,459 | 915 | ||||||||||||||
UAN | 6,681 | 1,196 | 5,865 | 1,480 | 6,092 | 1,670 | ||||||||||||||
AN | 2,151 | 411 | 1,290 | 294 | 958 | 243 | ||||||||||||||
Other(1) | 1,654 | 266 | 1,108 | 223 | 798 | 171 | ||||||||||||||
Total | 16,957 | $ | 3,685 | 13,718 | $ | 4,308 | 13,276 | $ | 4,575 |
(1) | Other segment products include DEF, urea liquor, nitric acid, aqua ammonia and NPKs. |
Average Annual Capacity(1) | |||||||||||||||||
Gross Ammonia(2) | Net Ammonia(2) | UAN(3) | Urea(4) | AN(5) | NPKs | ||||||||||||
(tons in thousands) | |||||||||||||||||
Donaldsonville, Louisiana(6) | 4,335 | 1,390 | 3,255 | 2,835 | — | — | |||||||||||
Medicine Hat, Alberta | 1,230 | 770 | — | 810 | — | — | |||||||||||
Port Neal, Iowa | 1,230 | 110 | 800 | 1,400 | — | — | |||||||||||
Verdigris, Oklahoma(7)(8) | 1,210 | 430 | 1,955 | — | — | — | |||||||||||
Woodward, Oklahoma | 480 | 130 | 810 | 45 | — | — | |||||||||||
Yazoo City, Mississippi(8)(9) | 570 | — | 160 | 50 | 1,035 | — | |||||||||||
Courtright, Ontario(8)(10) | 500 | 265 | 345 | 160 | — | — | |||||||||||
Ince, U.K.(11) | 380 | 20 | — | — | 575 | 385 | |||||||||||
Billingham, U.K.(8)(10) | 595 | 310 | — | — | 625 | — | |||||||||||
10,530 | 3,425 | 7,325 | 5,300 | 2,235 | 385 | ||||||||||||
Unconsolidated Affiliate | |||||||||||||||||
Point Lisas, Trinidad(12) | 360 | 360 | — | — | — | — | |||||||||||
Total | 10,890 | 3,785 | 7,325 | 5,300 | 2,235 | 385 |
(1) | Average annual capacity includes allowance for normal outages and planned maintenance shutdowns. |
(2) | Gross ammonia capacity includes ammonia used to produce upgraded products. Net ammonia capacity is gross ammonia capacity less ammonia used to produce upgraded products based on the product mix shown in the table. |
(3) | Measured in tons of UAN containing 32% nitrogen by weight. |
(4) | Urea is sold as granular urea from the Donaldsonville and Medicine Hat facilities, as urea liquor from the Woodward, Yazoo City and Courtright facilities and as either granular urea or urea liquor from the Port Neal facility. Urea liquor produced at the Yazoo City, Courtright, Woodward and Port Neal facilities can be sold as DEF. |
(5) | AN includes prilled products (Amtrate and IGAN) and AN solution produced for sale. |
(6) | The Donaldsonville facility capacities present an estimated production mix. This facility is capable of producing between 2.4 million and 3.3 million tons of granular urea and between 1.2 million and 4.3 million tons of UAN annually. |
(7) | Represents 100% of the capacity of this facility. |
(8) | Reduction of UAN or AN production at the Yazoo City, Courtright, Verdigris and Billingham facilities can allow more merchant nitric acid to be made available for sale. |
(9) | The Yazoo City facility's production capacity depends on product mix. With the facility maximizing the production of AN products, 160,000 tons of UAN can be produced. UAN production can be increased to 450,000 tons by reducing the production of AN to 900,000 tons. |
(10) | Production of urea products at the Courtright facility can be increased by reducing UAN production. |
(11) | The Ince facility's production capacity depends on product mix. The facility can increase production of NPKs to 550,000 tons by reducing AN production to 485,000 tons. |
(12) | Represents our 50% interest in the capacity of PLNL. |
December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
(tons in thousands) | ||||||||
Ammonia(1) | 8,307 | 7,673 | 7,011 | |||||
Granular urea | 3,368 | 2,520 | 2,347 | |||||
UAN (32%) | 6,698 | 5,888 | 5,939 | |||||
AN | 1,845 | 1,283 | 950 |
(1) | Gross ammonia production, including amounts subsequently upgraded on-site into granular urea, UAN or AN. |
2014 | ||||||
Tons | Net Sales | |||||
(tons in thousands; dollars in millions) | ||||||
Phosphate Fertilizer Products | ||||||
DAP | 372 | $ | 127 | |||
MAP | 115 | 41 | ||||
Total | 487 | $ | 168 |
Ammonia | Granular Urea | UAN(1) | AN | ||||||||||||||||||||
Number of Facilities | Capacity (000 Tons) | Number of Facilities | Capacity (000 Tons) | Number of Facilities | Capacity (000 Tons) | Number of Facilities | Capacity (000 Tons) | ||||||||||||||||
Plants | 9 | 571 | 5 | 447 | 6 | 530 | 3 | 249 | |||||||||||||||
Terminal and Warehouse Locations | |||||||||||||||||||||||
Owned | 22 | 810 | 1 | 200 | 8 | 219 | — | — | |||||||||||||||
Leased(2) | 4 | 130 | 1 | 9 | 55 | 576 | — | — | |||||||||||||||
Total In-Market | 26 | 940 | 2 | 209 | 63 | 795 | — | — | |||||||||||||||
Total Storage Capacity | 1,511 | 656 | 1,325 | 249 |
(1) | Capacity is expressed as the equivalent volume of UAN measured on a 32% nitrogen content basis. |
(2) | Our lease agreements are typically for periods of one to five years. |
• | make it more difficult for us to pay or refinance our debts as they become due during adverse economic and industry conditions because any related decrease in revenues could cause us not to have sufficient cash flows from operations to make our scheduled debt payments; |
• | cause us to be less able to take advantage of significant business opportunities, such as acquisition opportunities, and to react to changes in market or industry conditions; |
• | cause us to use a portion of our cash flow from operations for debt service, reducing the availability of cash to fund working capital and capital expenditures, and other business activities; |
• | cause us to be more vulnerable to general adverse economic and industry conditions; |
• | expose us to the risk of increased interest rates because certain of our borrowings, including borrowings under our Revolving Credit Agreement, could be at variable rates of interest; |
• | make us more leveraged than some of our competitors, which could place us at a competitive disadvantage; |
• | restrict our investments in our subsidiaries, which could limit our ability to fund certain of our businesses; |
• | restrict our ability to dispose of assets or otherwise restrict our use of funds from the disposal of assets; |
• | restrict our ability to pay dividends on our common stock or utilize excess cash to repurchase shares of our common stock; |
• | limit our ability to borrow additional monies in the future to fund working capital, capital expenditures and other general corporate purposes; and |
• | result in a downgrade in the credit rating of our indebtedness which could increase the cost of further borrowings. |
• | incur additional indebtedness or guarantee indebtedness; |
• | pay dividends on, repurchase or make distributions in respect of their capital stock or make other restricted payments; |
• | make certain investments or acquisitions; |
• | sell, transfer or otherwise convey certain assets; |
• | create liens; |
• | consolidate, merge, sell or otherwise dispose of all or substantially all of our and our restricted subsidiaries’ assets; and |
• | prepay certain kinds of indebtedness. |
• | difficulties in integrating the parties’ operations, systems, technologies, products and personnel; |
• | incurrence of significant transaction-related expenses; |
• | potential integration or restructuring costs; |
• | potential impairment charges related to the goodwill, intangible assets or other assets to which any such transaction relates, in the event that the economic benefits of such transaction prove to be less than anticipated; |
• | other unanticipated costs associated with such transactions; |
• | our ability to achieve operating and financial efficiencies, synergies and cost savings; |
• | our ability to obtain the desired financial or strategic benefits from any such transaction; |
• | the parties’ ability to retain key business relationships, including relationships with employees, customers, partners and suppliers; |
• | potential loss of key personnel; |
• | entry into markets or involvement with products with which we have limited current or prior experience or in which competitors may have stronger positions; |
• | assumption of contingent liabilities, including litigation; |
• | exposure to unanticipated liabilities; |
• | differences in the parties’ internal control environments, which may require significant time and resources to resolve in conformity with applicable legal and accounting standards; |
• | increased scope, geographic diversity and complexity of our operations; |
• | the tax effects of any such transaction; and |
• | the potential for costly and time-consuming litigation, including stockholder lawsuits. |
• | the impact of particular economic, tax, currency, political, legal and regulatory risks associated with specific countries; |
• | challenges caused by distance and by language and cultural differences; |
• | difficulties and costs of complying with a wide variety of complex laws, treaties and regulations; |
• | unexpected changes in regulatory environments; |
• | political and economic instability, including the possibility for civil unrest; |
• | nationalization of properties by foreign governments; |
• | tax rates that may exceed those in the United States, and earnings that may be subject to withholding requirements; |
• | the imposition of tariffs, exchange controls or other restrictions; and |
• | the impact of currency exchange rate fluctuations. |
• | the cyclical nature of our business and the agricultural sector; |
• | the global commodity nature of our fertilizer products, the impact of global supply and demand on our selling prices, and the intense global competition from other fertilizer producers; |
• | conditions in the U.S. and European agricultural industry; |
• | the volatility of natural gas prices in North America and Europe; |
• | difficulties in securing the supply and delivery of raw materials, increases in their costs or delays or interruptions in their delivery; |
• | reliance on third party providers of transportation services and equipment; |
• | the significant risks and hazards involved in producing and handling our products against which we may not be fully insured; |
• | our ability to manage our indebtedness; |
• | operating and financial restrictions imposed on us by the agreements governing our senior secured indebtedness; |
• | risks associated with our incurrence of additional indebtedness; |
• | our ability to maintain compliance with covenants under the agreements governing our indebtedness; |
• | downgrades of our credit ratings; |
• | risks associated with cyber security; |
• | weather conditions; |
• | risks associated with our ability to utilize our tax net operating losses and other tax assets, including the risk that the use of such tax benefits is limited by an "ownership change;" |
• | risks associated with changes in tax laws and disagreements with taxing authorities; |
• | risks associated with expansions of our business, including unanticipated adverse consequences and the significant resources that could be required; |
• | potential liabilities and expenditures related to environmental, health and safety laws and regulations and permitting requirements; |
• | future regulatory restrictions and requirements related to greenhouse gas emissions; |
• | the seasonality of the fertilizer business; |
• | the impact of changing market conditions on our forward sales programs; |
• | risks involving derivatives and the effectiveness of our risk measurement and hedging activities; |
• | our reliance on a limited number of key facilities; |
• | risks associated with the operation or management of the CHS strategic venture, risks and uncertainties relating to the market prices of the fertilizer products that are the subject of our supply agreement with CHS over the life of the supply agreement, and the risk that any challenges related to the CHS strategic venture will harm our other business relationships; |
• | risks associated with our PLNL joint venture; |
• | acts of terrorism and regulations to combat terrorism; |
• | risks associated with international operations; and |
• | deterioration of global market and economic conditions. |
Sales Prices | Dividends per Share | ||||||||||
2016 | High | Low | |||||||||
First Quarter | $ | 40.95 | $ | 26.10 | $ | 0.30 | |||||
Second Quarter | 35.84 | 23.15 | 0.30 | ||||||||
Third Quarter | 28.32 | 20.77 | 0.30 | ||||||||
Fourth Quarter | 32.61 | 22.00 | 0.30 |
Sales Prices | Dividends per Share | ||||||||||
2015 | High | Low | |||||||||
First Quarter | $ | 62.89 | $ | 54.60 | $ | 0.30 | |||||
Second Quarter | 65.69 | 55.60 | 0.30 | ||||||||
Third Quarter | 70.32 | 43.88 | 0.30 | ||||||||
Fourth Quarter | 54.27 | 39.64 | 0.30 |
Issuer Purchases of Equity Securities | |||||||||||||
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Cumulative Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (in thousands)(1) | |||||||||
October 1, 2016 - October 31, 2016 | — | $ | — | — | $ | 100,000 | |||||||
November 1, 2016 - November 30, 2016 | — | — | — | 100,000 | |||||||||
December 1, 2016 - December 31, 2016(2) | — | — | — | — | |||||||||
Total | — |
(1) | Represents the authorized share repurchase program announced on August 6, 2014 that allowed management to repurchase common stock for a total expenditure of up to $1.0 billion through December 31, 2016 (the 2014 Program). See Note 18—Stockholders' Equity for additional information about the 2014 program. |
(2) | The $100 million of authorized share repurchases remaining under the 2014 Program expired on December 31, 2016. |
Year ended December 31, | |||||||||||||||||||
2016 | 2015(1) | 2014(2) | 2013 | 2012 | |||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||
Net sales | $ | 3,685 | $ | 4,308 | $ | 4,743 | $ | 5,475 | $ | 6,104 | |||||||||
Cost of sales | 2,845 | 2,761 | 2,965 | 2,955 | 2,991 | ||||||||||||||
Gross margin | 840 | 1,547 | 1,778 | 2,520 | 3,113 | ||||||||||||||
Selling, general and administrative expenses | 174 | 170 | 152 | 166 | 152 | ||||||||||||||
Transaction costs | 179 | 57 | — | — | — | ||||||||||||||
Other operating—net | 208 | 92 | 53 | (16 | ) | 49 | |||||||||||||
Total other operating costs and expenses | 561 | 319 | 205 | 150 | 201 | ||||||||||||||
Gain on sale of phosphate business | — | — | 750 | — | — | ||||||||||||||
Equity in (losses) earnings of operating affiliates | (145 | ) | (35 | ) | 43 | 42 | 47 | ||||||||||||
Operating earnings | 134 | 1,193 | 2,366 | 2,412 | 2,959 | ||||||||||||||
Interest expense (income)—net | 195 | 131 | 177 | 147 | 131 | ||||||||||||||
Loss on debt extinguishment | 167 | — | — | — | — | ||||||||||||||
Other non-operating—net | (2 | ) | 4 | 2 | 55 | (1 | ) | ||||||||||||
(Loss) earnings before income taxes and equity in earnings of non-operating affiliates | (226 | ) | 1,058 | 2,187 | 2,210 | 2,829 | |||||||||||||
Income tax (benefit) provision | (68 | ) | 396 | 773 | 687 | 964 | |||||||||||||
Equity in earnings of non-operating affiliates—net of taxes | — | 72 | 23 | 10 | 58 | ||||||||||||||
Net (loss) earnings | (158 | ) | 734 | 1,437 | 1,533 | 1,923 | |||||||||||||
Less: Net earnings attributable to noncontrolling interests | 119 | 34 | 47 | 68 | 75 | ||||||||||||||
Net (loss) earnings attributable to common stockholders | $ | (277 | ) | $ | 700 | $ | 1,390 | $ | 1,465 | $ | 1,848 | ||||||||
Cash dividends declared per common share | $ | 1.20 | $ | 1.20 | $ | 1.00 | $ | 0.44 | $ | 0.32 | |||||||||
Share and per share data: | |||||||||||||||||||
Net (loss) earnings per share attributable to common stockholders: | |||||||||||||||||||
Basic | $ | (1.19 | ) | $ | 2.97 | $ | 5.43 | $ | 4.97 | $ | 5.79 | ||||||||
Diluted | (1.19 | ) | 2.96 | 5.42 | 4.95 | 5.72 | |||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||
Basic | 233.1 | 235.3 | 255.9 | 294.4 | 319.3 | ||||||||||||||
Diluted | 233.1 | 236.1 | 256.7 | 296.0 | 323.3 | ||||||||||||||
Other Financial Data: | |||||||||||||||||||
Depreciation, depletion and amortization | $ | 678 | $ | 480 | $ | 393 | $ | 411 | $ | 420 | |||||||||
Capital expenditures | 2,211 | 2,469 | 1,809 | 824 | 524 |
December 31, | |||||||||||||||||||
2016 | 2015(1) | 2014(2) | 2013 | 2012 | |||||||||||||||
(in millions) | |||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||
Cash and cash equivalents | $ | 1,164 | $ | 286 | $ | 1,997 | $ | 1,711 | $ | 2,275 | |||||||||
Total assets(3) | 15,131 | 12,683 | 11,200 | 10,574 | 10,122 | ||||||||||||||
Customer advances | 42 | 162 | 325 | 121 | 381 | ||||||||||||||
Total debt(3) | 5,778 | 5,537 | 4,538 | 3,054 | 1,570 | ||||||||||||||
Total equity | 6,492 | 4,387 | 4,572 | 5,438 | 6,282 |
(1) | On July 31, 2015, we acquired the remaining 50% equity interest in CF Fertilisers UK not previously owned by us. CF Fertilisers UK is now wholly owned by us. The financial results of CF Fertilisers UK have been consolidated within our financial results since July 31, 2015. Prior to July 31, 2015, our initial 50% equity interest in CF Fertilisers UK was accounted for as an equity method investment and the financial results of this investment were included in equity in earnings of non-operating affiliates—net of taxes. See Note 4—Acquisitions and Divestitures for additional information. |
(2) | On March 17, 2014, we completed the sale of our phosphate mining and manufacturing business. The selected historical financial data above includes the results of the phosphate business through March 17, 2014, plus the continuing sales of the phosphate inventory in the distribution network after March 17, 2014. The remaining phosphate inventory was sold in the second quarter of 2014. The results of the phosphate mining and manufacturing business are not reported as discontinued operations in our consolidated statements of operations. See Note 4—Acquisitions and Divestitures for additional information. |
(3) | Total debt and total assets have been retroactively restated for the years ended December 31, 2015, 2014, 2013 and 2012 to reflect our adoption during fiscal year 2016 of Accounting Standards Update 2015-03, Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, which resulted in the reclassification of deferred debt issuance costs from other assets to an offset of long-term debt on our consolidated balance sheets. See Note 3—New Accounting Standards and Note 12—Financing Agreements for additional information. |
• | Overview of CF Holdings |
• | Our Company |
• | Industry Factors and Market Conditions |
• | Items Affecting Comparability of Results |
• | Financial Executive Summary |
• | Results of Consolidated Operations |
• | Year Ended December 31, 2016 Compared to Year Ended December 31, 2015 |
• | Year Ended December 31, 2015 Compared to Year Ended December 31, 2014 |
• | Operating Results by Business Segment |
• | Liquidity and Capital Resources |
• | Off-Balance Sheet Arrangements |
• | Critical Accounting Policies and Estimates |
• | Recent Accounting Pronouncements |
• | four U.S. nitrogen fertilizer manufacturing facilities, located in Donaldsonville, Louisiana (the largest nitrogen fertilizer complex in the world); Port Neal, Iowa; Yazoo City, Mississippi; and Woodward, Oklahoma. These facilities are owned by CF Industries Nitrogen, LLC (CFN), in which we own a majority equity interest and CHS Inc. (CHS) owns a minority equity interest. See Note 17—Noncontrolling Interests to our consolidated financial statements included in Item 8 of this report for additional information on our strategic venture with CHS; |
• | an approximately 75.3% interest in Terra Nitrogen Company, L.P. (TNCLP), a publicly traded limited partnership of which we are the sole general partner and the majority limited partner and which, through its subsidiary Terra Nitrogen, Limited Partnership (TNLP), operates a nitrogen fertilizer manufacturing facility in Verdigris, Oklahoma; |
• | two Canadian nitrogen fertilizer manufacturing facilities, located in Medicine Hat, Alberta (the largest nitrogen fertilizer complex in Canada) and Courtright, Ontario; |
• | two United Kingdom nitrogen manufacturing complexes, located in Ince and Billingham; |
• | an extensive system of terminals and associated transportation equipment located primarily in the midwestern United States; and |
• | a 50% interest in Point Lisas Nitrogen Limited (PLNL), an ammonia production joint venture located in the Republic of Trinidad and Tobago that we account for under the equity method. |
• | A decline in Chinese nitrogen fertilizer operating rates due to rising production costs and lower global selling prices led to reduced Chinese urea supply availability in China and in international markets. |
• | Higher global oil prices have resulted in higher effective natural gas prices in Europe and Russia, and this has contributed to increasing nitrogen fertilizer manufacturers' production costs in these regions. |
• | Customers delayed purchasing into the fourth quarter of 2016, which reduced inventory levels in the supply chain. Increases in demand caused higher pricing as 2016 ended as customers began taking deliveries in anticipation of the 2017 spring application season. |
2016 | 2015 | 2014 | |||||||||||||||||||
Pre-Tax | After-Tax | Pre-Tax | After-Tax | Pre-Tax | After-Tax | ||||||||||||||||
(in millions) | |||||||||||||||||||||
Capacity Expansion Projects: | |||||||||||||||||||||
Expansion project depreciation | (1) | $ | 116 | $ | 73 | $ | 13 | $ | 8 | $ | — | $ | — | ||||||||
Start-up costs - Donaldsonville / Port Neal expansion plants | (1) | 52 | 32 | — | — | — | — | ||||||||||||||
Expansion project expenses | (2) | 73 | 46 | 51 | 32 | 31 | 19 | ||||||||||||||
Loss on foreign currency derivatives | (2) | — | — | 22 | 13 | 38 | 24 | ||||||||||||||
Strategic Venture with CHS: | |||||||||||||||||||||
Noncontrolling interest | (7) | 93 | 93 | — | — | — | — | ||||||||||||||
Loss on embedded derivative liability | (2) | 23 | 14 | — | — | — | — | ||||||||||||||
Debt Restructuring: | |||||||||||||||||||||
Loss on debt extinguishment | 167 | 105 | — | — | — | — | |||||||||||||||
Debt and revolver amendment fees | (3) | 16 | 10 | — | — | — | — | ||||||||||||||
Private Senior Notes arrangement fees | (4) | 2 | 1 | — | — | — | — | ||||||||||||||
CF Fertilisers UK Acquisition: | |||||||||||||||||||||
Gain on remeasurement of CF Fertilisers UK investment | (5) | — | — | (94 | ) | (94 | ) | — | — | ||||||||||||
Equity Method Investments: | |||||||||||||||||||||
Impairment of equity method investment in PLNL | (6) | 134 | 134 | 62 | 62 | — | — | ||||||||||||||
Loss on sale of equity method investments | (5) | — | — | 43 | 31 | — | — | ||||||||||||||
Transaction Costs and Termination of Agreement with OCI: | |||||||||||||||||||||
Transaction costs | 179 | 96 | 57 | 37 | — | — | |||||||||||||||
Financing costs related to bridge loan commitment fee | (3) | 28 | 18 | 6 | 4 | — | — | ||||||||||||||
Other Items: | |||||||||||||||||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | (1) | (260 | ) | (163 | ) | 176 | 111 | 79 | 50 | ||||||||||||
Loss (gain) on foreign currency transactions including intercompany loans | (2) | 93 | 93 | (8 | ) | — | (15 | ) | (9 | ) | |||||||||||
Gain on sale of phosphate business | — | — | — | — | (750 | ) | (463 | ) | |||||||||||||
Retirement benefit settlement charges | (1)(4) | — | — | — | — | 13 | 8 | ||||||||||||||
Total Impact of Significant Items | $ | 716 | $ | 552 | $ | 328 | $ | 204 | $ | (604 | ) | $ | (371 | ) |
2016 | 2015 | 2014 | |||||||||||||
Subtotals of Amounts Above by Line Item in the Consolidated Statements of Operations: | (in millions) | ||||||||||||||
Cost of sales | $ | (92 | ) | $ | 189 | $ | 88 | ||||||||
Selling, general and administrative expenses | 2 | — | 4 | ||||||||||||
Transaction costs | 179 | 57 | — | ||||||||||||
Other operating—net | 189 | 65 | 54 | ||||||||||||
Gain on sale of phosphate business | — | — | (750 | ) | |||||||||||
Equity in (losses) earnings of operating affiliates | 134 | 62 | — | ||||||||||||
Interest expense | 44 | 6 | — | ||||||||||||
Loss on debt extinguishment | 167 | — | — | ||||||||||||
Equity in earnings of non-operating affiliates—net of taxes | — | (51 | ) | — | |||||||||||
Net earnings attributable to noncontrolling interests | 93 | — | — | ||||||||||||
Total Impact of Significant Items | $ | 716 | $ | 328 | $ | (604 | ) |
CF Holdings Reportable Segments | |||||||||||||||
CF Fertilisers UK Financial Results | Ammonia | AN | Other | Consolidated | |||||||||||
(dollars in millions) | |||||||||||||||
Seven months ended July 31, 2016 | |||||||||||||||
Sales volume by product tons (000s) | 100 | 737 | 468 | 1,305 | |||||||||||
Net sales | $ | 26 | $ | 164 | $ | 79 | $ | 269 | |||||||
Cost of sales | 22 | 155 | 74 | 251 | |||||||||||
Gross margin | $ | 4 | $ | 9 | $ | 5 | $ | 18 | |||||||
Gross margin percentage | 15.4 | % | 5.5 | % | 6.3 | % | 6.7 | % |
CF Holdings Reportable Segments | |||||||||||||||
CF Fertilisers UK Financial Results | Ammonia | AN | Other | Consolidated | |||||||||||
(dollars in millions) | |||||||||||||||
Five months ended December 31, 2015 | |||||||||||||||
Sales volume by product tons (000s) | 112 | 436 | 277 | 825 | |||||||||||
Net sales | $ | 38 | $ | 117 | $ | 53 | $ | 208 | |||||||
Cost of sales | 30 | 109 | 46 | 185 | |||||||||||
Gross margin | $ | 8 | $ | 8 | $ | 7 | $ | 23 | |||||||
Gross margin percentage | 20.1 | % | 7.2 | % | 14.0 | % | 11.3 | % |
• | We reported a net loss attributable to common stockholders of $277 million in 2016, compared to net earnings attributable to common stockholders of $700 million in 2015, or a decline of $977 million. |
• | Diluted net loss per share attributable to common stockholders was $1.19 per share in 2016 compared to diluted net earnings per share of $2.96 per share in 2015. |
• | In 2016, we experienced lower net earnings attributable to common stockholders compared to 2015 due primarily to a lower gross margin as a result of lower average selling prices resulting from the excess global supply of nitrogen fertilizer, combined with the impact of several significant items which are discussed above under "Items Affecting Comparability of Results." |
• | Our total gross margin declined by $707 million, or 46%, to $840 million in 2016 from $1.55 billion in 2015. The impact of the CF Fertilisers UK acquisition increased gross margin by $18 million, or 1%. The remaining decline in our gross margin of $725 million was due primarily to lower average selling prices and higher capacity expansion project related costs, partially offset by the impact of unrealized net mark-to-market gains on natural gas derivatives, increased sales volume, and lower physical natural gas costs and production costs: |
• | Average selling prices declined by 31%, which reduced gross margin by $1.38 billion. |
• | Unrealized net mark-to-market gains on natural gas derivatives increased gross margin by $436 million as 2016 included a $260 million gain and 2015 included a $176 million loss. |
• | Sales volume, primarily granular urea and UAN, increased by 14%, which increased gross margin by $215 million. Sales volume increased due to the completion of our capacity expansion project upgrading facilities at our Donaldsonville, Louisiana complex for granular urea and UAN. |
• | Donaldsonville and Port Neal expansion project depreciation reduced gross margin by approximately$103 million. Start-up costs for the Donaldsonville ammonia and Port Neal ammonia and urea plants reduced gross margin by $52 million. |
• | Lower physical natural gas costs in 2016 increased gross margin by $108 million as natural gas prices were lower in 2016, particularly in the first half of the year with high storage levels and strong production in North America. Natural gas prices rose towards the end of 2016. |
• | Realized net mark-to-market losses on natural gas derivatives decreased gross margin by $62 million as 2016 included a $132 million loss and 2015 included a $70 million loss. |
• | Lower production, distribution and freight costs, increased gross margin by approximately $104 million. |
• | Our income tax (benefit) provision declined by $464 million to a net benefit of $68 million in 2016 from an income tax provision of $396 million for 2015 primarily as a result of the loss recognized in 2016. See Note 10—Income Taxes to our consolidated financial statements included in Item 8 of this report for additional information on our income tax benefit. |
• | Selling, general and administrative expenses increased $4 million to $174 million in 2016 from $170 million in 2015. The increase was due primarily to the impact of the CF Fertilisers UK acquisition, partly offset by lower costs for corporate initiatives and lower intangible asset amortization expense. |
• | Transaction costs incurred in 2016 of $179 million are associated primarily with the agreements pertaining to the proposed combination with certain businesses of OCI that was terminated on May 22, 2016 and our strategic venture with CHS. Transaction costs include the $150 million termination fee paid by CF Holdings to OCI in the second quarter of 2016 as a result of the termination of the Combination Agreement and costs for various consulting and legal services. |
• | Other operating—net increased by $116 million from $92 million in 2015 to $208 million in 2016. The increased expense was due primarily to realized and unrealized losses on foreign currency transactions primarily related to British pound sterling denominated intercompany debt that has not been permanently invested. The increased expense also reflects higher expansion project costs pertaining to our Donaldsonville, Louisiana and Port Neal, Iowa capacity expansion projects that did not qualify for capitalization and the loss of $23 million representing the net fair value adjustments to an embedded derivative related to our strategic venture with CHS. These increases were partly offset by a decrease in realized and unrealized losses on foreign currency derivatives of $22 million. |
• | Net interest expense increased by $64 million to $195 million in 2016 from $131 million in 2015. The $64 million increase in net interest expense was due primarily to the combination of higher debt levels due to the issuance of $1.0 billion of Private Senior Notes in September 2015 and debt amendment fees and accelerated amortization of debt issuance costs due to restructuring of our debt and the Revolving Credit Agreement in 2016. In 2016, we modified the Revolving Credit Agreement by reducing its size from $2.0 billion to $750 million and modifying certain covenants and other terms. As a result of these changes, we recognized $16 million of debt amendment fees and accelerated amortization of loan fees in interest expense. The increase in interest expense—net in 2016 also includes the amortization of capitalized Bridge Credit Agreement fees of $28 million pertaining to the bridge loan for our proposed combination with certain of the OCI businesses. We also recorded capitalized interest of $166 million in 2016 related primarily to our capacity expansion projects compared to $154 million in 2015. |
• | In 2016, we prepaid in full the outstanding $1.0 billion aggregate principal amount of our Private Senior Notes and recognized a loss on debt extinguishment of $167 million. The prepayment of $1.18 billion included the payment of a make-whole amount of approximately $170 million and accrued interest. Loss on debt extinguishment of $167 million on our consolidated statement of operations excludes $3 million of the make-whole payment, which was accounted for as a modification and recognized on our consolidated balance sheet as deferred financing fees, a reduction of long-term debt, and is being amortized using the effective interest rate method over the term of the Senior Secured Notes. |
• | Net cash provided by operating activities in 2016 was $617 million as compared to $1.21 billion in 2015, a decline of $590 million. The decline resulted primarily from lower net earnings during 2016 due to lower average selling prices from excess global nitrogen supply, partially offset by lower amounts of cash used for working capital purposes. Lower working capital levels in accounts receivable and inventory, plus lower amounts paid for income taxes and certain income tax refunds received in 2016, contributed to the reduction in cash used for working capital. Favorable changes in working capital also included a greater proportion of sales was paid in 2016 as compared to the prior year period as we entered 2016 with a lower level of customer advances than in 2015 due to customers’ hesitancy to enter into prepaid contracts in a declining fertilizer price environment. |
• | Net cash used in investing activities was $2.18 billion in 2016 compared to $2.98 billion in 2015. This decrease is due primarily to the 2015 acquisition of the remaining 50% equity interest in CF Fertilisers UK not previously owned by us for a net cash payment of $552 million, which was net of cash acquired of $18 million. This decrease was also attributable in part to a decline in capital expenditures related primarily to the capacity expansion projects in Donaldsonville, Louisiana and Port Neal, Iowa. During 2016, capital expenditures totaled $2.21 billion compared to $2.47 billion in 2015. |
• | Net cash provided by financing activities was $2.44 billion in 2016 compared to $77 million in 2015. In 2016, CHS purchased a minority equity interest in CFN for $2.8 billion. We distributed $119 million to the noncontrolling interests, including CHS, in 2016, compared to $45 million in 2015. In 2016, we received proceeds of approximately $1.24 billion, net of discounts, from the issuance of the Senior Secured Notes which were used to fund the prepayment of the $1.0 billion of Private Senior Notes and the related make-whole payment of $170 million. No share repurchases were made during 2016 compared to 8.9 million shares repurchased for $556 million in cash in 2015. Dividends paid on common stock were $280 million and $282 million in 2016 and 2015, respectively. |
Twelve months ended December 31, | |||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 v. 2015 | 2015 v. 2014 | |||||||||||||||||||||
(in millions, except as noted) | |||||||||||||||||||||||||
Net sales | $ | 3,685 | $ | 4,308 | $ | 4,743 | $ | (623 | ) | (14 | )% | $ | (435 | ) | (9 | )% | |||||||||
Cost of sales (COS) | 2,845 | 2,761 | 2,965 | 84 | 3 | % | (204 | ) | (7 | )% | |||||||||||||||
Gross margin | 840 | 1,547 | 1,778 | (707 | ) | (46 | )% | (231 | ) | (13 | )% | ||||||||||||||
Gross margin percentage | 22.8 | % | 35.9 | % | 37.5 | % | (13.1 | )% | (1.6 | )% | |||||||||||||||
Selling, general and administrative expenses | 174 | 170 | 152 | 4 | 2 | % | 18 | 12 | % | ||||||||||||||||
Transaction costs | 179 | 57 | — | 122 | 214 | % | 57 | N/M | |||||||||||||||||
Other operating—net | 208 | 92 | 53 | 116 | 126 | % | 39 | 74 | % | ||||||||||||||||
Total other operating costs and expenses | 561 | 319 | 205 | 242 | 76 | % | 114 | 56 | % | ||||||||||||||||
Gain on sale of phosphate business | — | — | 750 | — | N/M | (750 | ) | (100 | )% | ||||||||||||||||
Equity in (losses) earnings of operating affiliates | (145 | ) | (35 | ) | 43 | (110 | ) | N/M | (78 | ) | N/M | ||||||||||||||
Operating earnings | 134 | 1,193 | 2,366 | (1,059 | ) | (89 | )% | (1,173 | ) | (50 | )% | ||||||||||||||
Interest expense—net | 195 | 131 | 177 | 64 | 49 | % | (46 | ) | (26 | )% | |||||||||||||||
Loss on debt extinguishment | 167 | — | — | 167 | N/M | — | N/M | ||||||||||||||||||
Other non-operating—net | (2 | ) | 4 | 2 | (6 | ) | N/M | 2 | 100 | % | |||||||||||||||
(Loss) earnings before income taxes and equity in earnings of non-operating affiliates | (226 | ) | 1,058 | 2,187 | (1,284 | ) | N/M | (1,129 | ) | (52 | )% | ||||||||||||||
Income tax (benefit) provision | (68 | ) | 396 | 773 | (464 | ) | N/M | (377 | ) | (49 | )% | ||||||||||||||
Equity in earnings of non-operating affiliates—net of taxes | — | 72 | 23 | (72 | ) | (100 | )% | 49 | 213 | % | |||||||||||||||
Net (loss) earnings | (158 | ) | 734 | 1,437 | (892 | ) | N/M | (703 | ) | (49 | )% | ||||||||||||||
Less: Net earnings attributable to noncontrolling interests | 119 | 34 | 47 | 85 | 250 | % | (13 | ) | (28 | )% | |||||||||||||||
Net (loss) earnings attributable to common stockholders | $ | (277 | ) | $ | 700 | $ | 1,390 | $ | (977 | ) | N/M | $ | (690 | ) | (50 | )% | |||||||||
Diluted net earnings (loss) per share attributable to common stockholders | $ | (1.19 | ) | $ | 2.96 | $ | 5.42 | $ | (4.15 | ) | N/M | $ | (2.46 | ) | (45 | )% | |||||||||
Diluted weighted-average common shares outstanding | 233.1 | 236.1 | 256.7 | (3.0 | ) | (1 | )% | (20.6 | ) | (8 | )% | ||||||||||||||
Dividends declared per common share | $ | 1.20 | $ | 1.20 | $ | 1.00 | $ | — | $ | 0.20 | |||||||||||||||
Natural Gas Supplemental Data (per MMBtu) | |||||||||||||||||||||||||
Natural gas costs in COS(1) | $ | 2.61 | $ | 3.00 | $ | 4.46 | $ | (0.39 | ) | (13 | )% | $ | (1.46 | ) | (33 | )% | |||||||||
Realized derivatives loss (gain) in COS(2) | 0.46 | 0.28 | (0.24 | ) | 0.18 | 64 | % | 0.52 | N/M | ||||||||||||||||
Cost of natural gas in COS | $ | 3.07 | $ | 3.28 | $ | 4.22 | $ | (0.21 | ) | (6 | )% | $ | (0.94 | ) | (22 | )% | |||||||||
Average daily market price of natural gas Henry Hub (Louisiana) | $ | 2.48 | $ | 2.61 | $ | 4.32 | $ | (0.13 | ) | (5 | )% | $ | (1.71 | ) | (40 | )% | |||||||||
Average daily market price of natural gas National Balancing Point (UK)(3) | $ | 4.66 | $ | 6.53 | $ | — | $ | (1.87 | ) | (29 | )% | $ | 6.53 | N/M | |||||||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | $ | (260 | ) | $ | 176 | $ | 79 | $ | (436 | ) | N/M | $ | 97 | 123 | % | ||||||||||
Capital expenditures | $ | 2,211 | $ | 2,469 | $ | 1,809 | $ | (258 | ) | (10 | )% | $ | 660 | 36 | % | ||||||||||
Sales volume by product tons (000s) | 16,957 | 13,718 | 13,763 | 3,239 | 24 | % | (45 | ) | — | % | |||||||||||||||
Production volume by product tons (000s): | |||||||||||||||||||||||||
Ammonia(4) | 8,307 | 7,673 | 7,011 | 634 | 8 | % | 662 | 9 | % | ||||||||||||||||
Granular urea | 3,368 | 2,520 | 2,347 | 848 | 34 | % | 173 | 7 | % | ||||||||||||||||
UAN (32%) | 6,698 | 5,888 | 5,939 | 810 | 14 | % | (51 | ) | (1 | )% | |||||||||||||||
AN | 1,845 | 1,283 | 950 | 562 | 44 | % | 333 | 35 | % |
(1) | Includes the cost of natural gas that is included in cost of sales during the period under the first-in, first-out (FIFO) inventory cost method. |
(2) | Includes realized gains and losses on natural gas derivatives settled during the period. Excludes unrealized mark-to-market gains and losses on natural gas derivatives. |
(3) | Amount represents average daily market price for the full year 2015 and 2016. |
(4) | Gross ammonia production, including amounts subsequently upgraded on-site into granular urea, UAN, or AN. |
• | Average selling prices declined by 31% in 2016 compared to 2015, which reduced gross margin by $1.38 billion. |
• | Unrealized net mark-to-market gains on natural gas derivatives increased gross margin by $436 million as 2016 included a $260 million gain and 2015 included a $176 million loss. |
• | Sales volume, primarily granular urea and UAN, increased by 14%, which increased gross margin by $215 million. Sales volume increased due to the completion of our capacity expansion project upgrading facilities at our Donaldsonville, Louisiana complex for granular urea and UAN. |
• | Donaldsonville and Port Neal expansion project depreciation reduced gross margin by approximately $103 million. Start-up costs for the Donaldsonville ammonia and Port Neal ammonia and urea plants reduced gross margin by $52 million. |
• | Lower physical natural gas costs in 2016 increased gross margin by $108 million as natural gas prices were lower in 2016, particularly in the first half of the year with high storage levels and strong production in North America. Natural gas prices rose towards the end of 2016. |
• | Realized net mark-to-market losses on natural gas derivatives decreased gross margin by $62 million as 2016 included a $132 million loss and 2015 included a $70 million loss. |
• | Lower production, distribution and freight costs increased gross margin by approximately $104 million. |
• | Average selling prices, primarily UAN and granular urea, decreased by 8%, which reduced gross margin by $349 million as international nitrogen fertilizer prices declined due to excess global supply. The combination of falling global production costs, foreign currency devaluation and reduced ocean freight costs allowed many international producers to continue operations and the resulting supply weighed on global prices. |
• | Sales volume, primarily ammonia, decreased by 3%, which decreased gross margin by $72 million due primarily to a poor fall application season and weaker demand as customers were unable to apply ammonia due to poor weather conditions and customers were hesitant to buy in a declining pricing environment. |
• | Unrealized net mark-to-market losses on natural gas derivatives decreased gross margin by $97 million as 2015 included a $176 million loss compared to a $79 million loss in 2014. |
• | Lower physical natural gas costs in 2015, partially offset by the impact of natural gas derivatives that settled in the period, increased gross margin by $230 million compared to 2014. Lower natural gas costs were primarily driven by increased North American natural gas production, as increased well efficiencies increased supply. Warm weather conditions, especially in the fourth quarter of 2015, also contributed to high storage levels and the resulting decline in natural gas prices. |
Ammonia | Granular Urea(1) | UAN(1) | AN(1) | Other(1) | Phosphate | Consolidated | |||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||||||
Year ended December 31, 2016 | |||||||||||||||||||||||||||
Net sales | $ | 981 | $ | 831 | $ | 1,196 | $ | 411 | $ | 266 | $ | — | $ | 3,685 | |||||||||||||
Cost of sales | 715 | 584 | 920 | 409 | 217 | — | 2,845 | ||||||||||||||||||||
Gross margin | $ | 266 | $ | 247 | $ | 276 | $ | 2 | $ | 49 | $ | — | $ | 840 | |||||||||||||
Gross margin percentage | 27.1 | % | 29.7 | % | 23.1 | % | 0.5 | % | 18.4 | % | — | % | 22.8 | % | |||||||||||||
Year ended December 31, 2015 | |||||||||||||||||||||||||||
Net sales | $ | 1,523 | $ | 788 | $ | 1,480 | $ | 294 | $ | 223 | $ | — | $ | 4,308 | |||||||||||||
Cost of sales | 884 | 469 | 955 | 291 | 162 | — | 2,761 | ||||||||||||||||||||
Gross margin | $ | 639 | $ | 319 | $ | 525 | $ | 3 | $ | 61 | $ | — | $ | 1,547 | |||||||||||||
Gross margin percentage | 42.0 | % | 40.4 | % | 35.5 | % | 1.1 | % | 27.2 | % | — | % | 35.9 | % | |||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||||
Net sales | $ | 1,576 | $ | 915 | $ | 1,670 | $ | 243 | $ | 171 | $ | 168 | $ | 4,743 | |||||||||||||
Cost of sales | 983 | 517 | 998 | 189 | 120 | 158 | 2,965 | ||||||||||||||||||||
Gross margin | $ | 593 | $ | 398 | $ | 672 | $ | 54 | $ | 51 | $ | 10 | $ | 1,778 | |||||||||||||
Gross margin percentage | 37.6 | % | 43.5 | % | 40.3 | % | 22.1 | % | 30.0 | % | 6.0 | % | 37.5 | % |
(1) | The cost of ammonia that is upgraded into other products is transferred at cost into the upgraded product results. |
Twelve months ended December 31, | |||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 v. 2015 | 2015 v. 2014 | |||||||||||||||||||||
(in millions, except as noted) | |||||||||||||||||||||||||
Net sales | $ | 981 | $ | 1,523 | $ | 1,576 | $ | (542 | ) | (36 | )% | $ | (53 | ) | (3 | )% | |||||||||
Cost of sales | 715 | 884 | 983 | (169 | ) | (19 | )% | (99 | ) | (10 | )% | ||||||||||||||
Gross margin | $ | 266 | $ | 639 | $ | 593 | $ | (373 | ) | (58 | )% | $ | 46 | 8 | % | ||||||||||
Gross margin percentage | 27.1 | % | 42.0 | % | 37.6 | % | (14.9 | )% | 4.4 | % | |||||||||||||||
Sales volume by product tons (000s) | 2,874 | 2,995 | 2,969 | (121 | ) | (4 | )% | 26 | 1 | % | |||||||||||||||
Sales volume by nutrient tons (000s)(1) | 2,358 | 2,456 | 2,434 | (98 | ) | (4 | )% | 22 | 1 | % | |||||||||||||||
Average selling price per product ton | $ | 341 | $ | 509 | $ | 531 | $ | (168 | ) | (33 | )% | $ | (22 | ) | (4 | )% | |||||||||
Average selling price per nutrient ton(1) | $ | 416 | $ | 620 | $ | 648 | $ | (204 | ) | (33 | )% | $ | (28 | ) | (4 | )% | |||||||||
Gross margin per product ton | $ | 93 | $ | 213 | $ | 200 | $ | (120 | ) | (56 | )% | $ | 13 | 7 | % | ||||||||||
Gross margin per nutrient ton(1) | $ | 113 | $ | 260 | $ | 244 | $ | (147 | ) | (57 | )% | $ | 16 | 7 | % | ||||||||||
Depreciation and amortization | $ | 96 | $ | 95 | $ | 69 | $ | 1 | 1 | % | $ | 26 | 38 | % | |||||||||||
Unrealized net mark-to-market loss (gain) on natural gas derivatives | $ | (85 | ) | $ | 40 | $ | 25 | $ | (125 | ) | N/M | $ | 15 | 60 | % |
(1) | Ammonia represents 82% nitrogen content. Nutrient tons represent the tons of nitrogen within the product tons. |
Twelve months ended December 31, | |||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 v. 2015 | 2015 v. 2014 | |||||||||||||||||||||
(in millions, except as noted) | |||||||||||||||||||||||||
Net sales | $ | 831 | $ | 788 | $ | 915 | $ | 43 | 5 | % | $ | (127 | ) | (14 | )% | ||||||||||
Cost of sales | 584 | 469 | 517 | 115 | 25 | % | (48 | ) | (9 | )% | |||||||||||||||
Gross margin | $ | 247 | $ | 319 | $ | 398 | $ | (72 | ) | (23 | )% | $ | (79 | ) | (20 | )% | |||||||||
Gross margin percentage | 29.7 | % | 40.4 | % | 43.5 | % | (10.7 | )% | (3.1 | )% | |||||||||||||||
Sales volume by product tons (000s) | 3,597 | 2,460 | 2,459 | 1,137 | 46 | % | 1 | — | % | ||||||||||||||||
Sales volume by nutrient tons (000s)(1) | 1,654 | 1,132 | 1,131 | 522 | 46 | % | 1 | — | % | ||||||||||||||||
Average selling price per product ton | $ | 231 | $ | 320 | $ | 372 | $ | (89 | ) | (28 | )% | $ | (52 | ) | (14 | )% | |||||||||
Average selling price per nutrient ton(1) | $ | 502 | $ | 696 | $ | 809 | $ | (194 | ) | (28 | )% | $ | (113 | ) | (14 | )% | |||||||||
Gross margin per product ton | $ | 69 | $ | 129 | $ | 162 | $ | (60 | ) | (47 | )% | $ | (33 | ) | (20 | )% | |||||||||
Gross margin per nutrient ton(1) | $ | 149 | $ | 281 | $ | 352 | $ | (132 | ) | (47 | )% | $ | (71 | ) | (20 | )% | |||||||||
Depreciation and amortization | $ | 112 | $ | 51 | $ | 37 | $ | 61 | 120 | % | $ | 14 | 38 | % | |||||||||||
Unrealized net mark-to-market loss (gain) on natural gas derivatives | $ | (67 | ) | $ | 47 | $ | 17 | $ | (114 | ) | N/M | $ | 30 | 176 | % |
(1) | Granular urea represents 46% nitrogen content. Nutrient tons represent the tons of nitrogen within the product tons. |
Twelve months ended December 31, | |||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 v. 2015 | 2015 v. 2014 | |||||||||||||||||||||
(in millions, except as noted) | |||||||||||||||||||||||||
Net sales | $ | 1,196 | $ | 1,480 | $ | 1,670 | $ | (284 | ) | (19 | )% | $ | (190 | ) | (11 | )% | |||||||||
Cost of sales | 920 | 955 | 998 | (35 | ) | (4 | )% | (43 | ) | (4 | )% | ||||||||||||||
Gross margin | $ | 276 | $ | 525 | $ | 672 | $ | (249 | ) | (47 | )% | $ | (147 | ) | (22 | )% | |||||||||
Gross margin percentage | 23.1 | % | 35.5 | % | 40.3 | % | (12.4 | )% | (4.8 | )% | |||||||||||||||
Sales volume by product tons (000s) | 6,681 | 5,865 | 6,092 | 816 | 14 | % | (227 | ) | (4 | )% | |||||||||||||||
Sales volume by nutrient tons (000s)(1) | 2,109 | 1,854 | 1,925 | 255 | 14 | % | (71 | ) | (4 | )% | |||||||||||||||
Average selling price per product ton | $ | 179 | $ | 252 | $ | 274 | $ | (73 | ) | (29 | )% | $ | (22 | ) | (8 | )% | |||||||||
Average selling price per nutrient ton(1) | $ | 567 | $ | 798 | $ | 867 | $ | (231 | ) | (29 | )% | $ | (69 | ) | (8 | )% | |||||||||
Gross margin per product ton | $ | 41 | $ | 90 | $ | 110 | $ | (49 | ) | (54 | )% | $ | (20 | ) | (18 | )% | |||||||||
Gross margin per nutrient ton(1) | $ | 131 | $ | 283 | $ | 349 | $ | (152 | ) | (54 | )% | $ | (66 | ) | (19 | )% | |||||||||
Depreciation and amortization | $ | 247 | $ | 192 | $ | 179 | $ | 55 | 29 | % | $ | 13 | 7 | % | |||||||||||
Unrealized net mark-to-market loss (gain) on natural gas derivatives | $ | (81 | ) | $ | 73 | $ | 30 | $ | (154 | ) | N/M | $ | 43 | 143 | % |
(1) | UAN represents between 28% and 32% of nitrogen content, depending on the concentration specified by the customer. Nutrient tons represent the tons of nitrogen within the product tons. |
Twelve months ended December 31, | |||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 v. 2015 | 2015 v. 2014 | |||||||||||||||||||||
(in millions, except as noted) | |||||||||||||||||||||||||
Net sales | $ | 411 | $ | 294 | $ | 243 | $ | 117 | 40 | % | $ | 51 | 21 | % | |||||||||||
Cost of sales | 409 | 291 | 189 | 118 | 41 | % | 102 | 54 | % | ||||||||||||||||
Gross margin | $ | 2 | $ | 3 | $ | 54 | $ | (1 | ) | (33 | )% | $ | (51 | ) | (94 | )% | |||||||||
Gross margin percentage | 0.5 | % | 1.1 | % | 22.1 | % | (0.6 | )% | (21.0 | )% | |||||||||||||||
Sales volume by product tons (000s) | 2,151 | 1,290 | 958 | 861 | 67 | % | 332 | 35 | % | ||||||||||||||||
Sales volume by nutrient tons (000s)(1) | 726 | 437 | 329 | 289 | 66 | % | 108 | 33 | % | ||||||||||||||||
Average selling price per product ton | $ | 191 | $ | 228 | $ | 253 | $ | (37 | ) | (16 | )% | $ | (25 | ) | (10 | )% | |||||||||
Average selling price per nutrient ton(1) | $ | 566 | $ | 673 | $ | 738 | $ | (107 | ) | (16 | )% | $ | (65 | ) | (9 | )% | |||||||||
Gross margin per product ton | $ | 1 | $ | 2 | $ | 56 | $ | (1 | ) | (50 | )% | $ | (54 | ) | (96 | )% | |||||||||
Gross margin per nutrient ton(1) | $ | 3 | $ | 7 | $ | 163 | $ | (4 | ) | (57 | )% | $ | (156 | ) | (96 | )% | |||||||||
Depreciation and amortization | $ | 93 | $ | 66 | $ | 47 | $ | 27 | 41 | % | $ | 19 | 40 | % | |||||||||||
Unrealized net mark-to-market loss (gain) on natural gas derivatives | $ | (10 | ) | $ | 16 | $ | 7 | $ | (26 | ) | N/M | $ | 9 | 129 | % |
(1) | Nutrient tons represent the tons of nitrogen within the product tons. |
• | Diesel exhaust fluid (DEF) is an aqueous urea solution typically made with 32.5% high-purity urea and 67.5% deionized water. |
• | Urea liquor is a liquid product that we sell in concentrations of 40%, 50% and 70% urea as a chemical intermediate. |
• | Nitric acid is a nitrogen-based product with a nitrogen content of 22.2%. |
• | Compound fertilizer products (NPKs) are solid granular fertilizer products for which the nutrient content is a combination of nitrogen, phosphorus and potassium. |
Twelve months ended December 31, | |||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 v. 2015 | 2015 v. 2014 | |||||||||||||||||||||
(in millions, except as noted) | |||||||||||||||||||||||||
Net sales | $ | 266 | $ | 223 | $ | 171 | $ | 43 | 19 | % | $ | 52 | 30 | % | |||||||||||
Cost of sales | 217 | 162 | 120 | 55 | 34 | % | 42 | 35 | % | ||||||||||||||||
Gross margin | $ | 49 | $ | 61 | $ | 51 | $ | (12 | ) | (20 | )% | $ | 10 | 20 | % | ||||||||||
Gross margin percentage | 18.4 | % | 27.2 | % | 30.0 | % | (8.8 | )% | (2.8 | )% | |||||||||||||||
Sales volume by product tons (000s) | 1,654 | 1,108 | 798 | 546 | 49 | % | 310 | 39 | % | ||||||||||||||||
Sales volume by nutrient tons (000s)(1) | 317 | 215 | 155 | 102 | 47 | % | 60 | 39 | % | ||||||||||||||||
Average selling price per product ton | $ | 161 | $ | 202 | $ | 215 | $ | (41 | ) | (20 | )% | $ | (13 | ) | (6 | )% | |||||||||
Average selling price per nutrient ton(1) | $ | 839 | $ | 1,040 | $ | 1,106 | $ | (201 | ) | (19 | )% | $ | (66 | ) | (6 | )% | |||||||||
Gross margin per product ton | $ | 30 | $ | 55 | $ | 64 | $ | (25 | ) | (45 | )% | $ | (9 | ) | (14 | )% | |||||||||
Gross margin per nutrient ton(1) | $ | 155 | $ | 283 | $ | 332 | $ | (128 | ) | (45 | )% | $ | (49 | ) | (15 | )% | |||||||||
Depreciation and amortization | $ | 46 | $ | 35 | $ | 20 | $ | 11 | 31 | % | $ | 15 | 75 | % | |||||||||||
Unrealized net mark-to-market loss (gain) on natural gas derivatives | $ | (17 | ) | $ | — | $ | — | $ | (17 | ) | N/M | $ | — | — | % |
(1) | Nutrient tons represent the tons of nitrogen within the product tons. |
2014 | ||||
(in millions, except as noted) | ||||
Net sales | $ | 168 | ||
Cost of sales | 158 | |||
Gross margin | $ | 10 | ||
Gross margin percentage | 6.0 | % | ||
Sales volume by product tons (000s)(1) | 487 | |||
Average selling price per product ton | $ | 346 | ||
Gross margin per product ton | $ | 21 | ||
Depreciation, depletion and amortization(2) | $ | — |
• | In 2014, we retired 38.6 million shares of our common stock that had been repurchased. In our consolidated balance sheet, the retirement of these shares eliminated the recorded treasury stock and reduced retained earnings and paid-in capital by $1.69 billion and $220 million, respectively. |
• | In 2015, we retired 10.7 million shares of our common stock that had been repurchased. In our consolidated balance sheet, the retirement of these shares eliminated the recorded treasury stock and reduced retained earnings and paid-in capital by $535 million and $62 million, respectively. |
• | In 2016, we retired 2.4 million shares of our common stock that had been repurchased. In our consolidated balance sheet, the retirement of these shares eliminated the recorded treasury stock and reduced retained earnings and paid-in capital by $136 million and $14 million, respectively. |
(i) | restrict the ratio of total secured debt to EBITDA (as defined in the Revolving Credit Agreement) for the period of four consecutive fiscal quarters most recently ended to a maximum of 3.75:1.00, |
(ii) | require the ratio of EBITDA for the period of four consecutive fiscal quarters most recently ended to consolidated interest expense (as defined in the Revolving Credit Agreement) for the period of four consecutive fiscal quarters most recently ended to be a minimum of 1.20:1.00 for the fiscal quarters ending on or prior to December 31, 2018, and 1.50:1.00 thereafter, and |
(iii) | require the ratio of total debt to total capitalization as of the last day of any fiscal quarter to be less than or equal to 0.60:1.00. |
Effective Interest Rate | December 31, 2016 | December 31, 2015 | |||||||||||||||
Principal Outstanding | Carrying Amount (1) | Principal Outstanding | Carrying Amount (1) | ||||||||||||||
(in millions) | |||||||||||||||||
Public Senior Notes: | |||||||||||||||||
6.875% due 2018 | 7.344% | $ | 800 | $ | 795 | $ | 800 | $ | 792 | ||||||||
7.125% due 2020 | 7.529% | 800 | 791 | 800 | 788 | ||||||||||||
3.450% due 2023 | 3.562% | 750 | 745 | 750 | 745 | ||||||||||||
5.150% due 2034 | 5.279% | 750 | 739 | 750 | 739 | ||||||||||||
4.950% due 2043 | 5.031% | 750 | 741 | 750 | 741 | ||||||||||||
5.375% due 2044 | 5.465% | 750 | 741 | 750 | 740 | ||||||||||||
Senior Secured Notes: | |||||||||||||||||
3.400% due 2021 | 3.784% | 500 | 491 | — | — | ||||||||||||
4.500% due 2026 | 4.760% | 750 | 735 | — | — | ||||||||||||
Private Senior Notes: | |||||||||||||||||
4.490% due 2022 | 4.664% | — | — | 250 | 248 | ||||||||||||
4.930% due 2025 | 5.061% | — | — | 500 | 496 | ||||||||||||
5.030% due 2027 | 5.145% | — | — | 250 | 248 | ||||||||||||
Total long-term debt | $ | 5,850 | $ | 5,778 | $ | 5,600 | $ | 5,537 |
(1) | Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $12 million and $7 million as of December 31, 2016 and December 31, 2015, respectively, and total deferred debt issuance costs were $60 million and $56 million as of December 31, 2016 and December 31, 2015, respectively. |
2017 | 2018 | 2019 | 2020 | 2021 | After 2021 | Total | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Contractual Obligations | |||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||
Long-term debt(1) | $ | — | $ | 800 | $ | — | $ | 800 | $ | 500 | $ | 3,750 | $ | 5,850 | |||||||||||||
Interest payments on long-term debt(1) | 308 | 278 | 251 | 222 | 191 | 2,393 | 3,643 | ||||||||||||||||||||
Other Obligations | |||||||||||||||||||||||||||
Operating leases | 89 | 83 | 65 | 51 | 41 | 92 | 421 | ||||||||||||||||||||
Equipment purchases and plant improvements (2) | 236 | 3 | 2 | — | — | — | 241 | ||||||||||||||||||||
Transportation(3) | 11 | 8 | 7 | 3 | — | — | 29 | ||||||||||||||||||||
Purchase obligations(4)(5) | 656 | 103 | 44 | 42 | 37 | 114 | 996 | ||||||||||||||||||||
Contributions to pension plans(6) | 22 | — | — | — | — | — | 22 | ||||||||||||||||||||
Net operating loss settlement(7) | 11 | — | — | — | — | — | 11 | ||||||||||||||||||||
Total(8)(9)(10) | $ | 1,333 | $ | 1,275 | $ | 369 | $ | 1,118 | $ | 769 | $ | 6,349 | $ | 11,213 |
(1) | Based on debt balances before discounts, offering expenses and interest rates as of December 31, 2016. |
(2) | Includes obligations to finalize the capital component of the Donaldsonville, Louisiana and Port Neal, Iowa capacity expansion projects that were completed in 2016. For further information, see discussion under "Liquidity and Capital Resources—Capacity Expansion Projects and Restricted Cash." |
(3) | Includes anticipated expenditures under certain contracts to transport finished product to and from our facilities. The majority of these arrangements allow for reductions in usage based on our actual operating rates. Amounts set forth in this table are based on projected normal operating rates and contracted or current spot prices, where applicable, as of December 31, 2016 and actual operating rates and prices may differ. |
(4) | Includes minimum commitments to purchase and transport natural gas based on prevailing market-based forward prices as of December 31, 2016 excluding reductions for plant maintenance and turnaround activities. Purchase obligations do not include any amounts related to our natural gas derivatives. See Note 15—Derivative Financial Instruments to our consolidated financial statements included in Item 8 of this report for additional information. |
(5) | Includes a commitment to purchase ammonia from PLNL at market-based prices under an agreement that expires in 2018. The annual commitment based on market prices as of December 31, 2016 is $57 million with a total remaining commitment of $100 million. |
(6) | Represents the contributions we expect to make to our pension plans during 2017. Our pension funding policy is to contribute amounts sufficient to meet minimum legal funding requirements plus discretionary amounts that we may deem to be appropriate. |
(7) | Represents the amounts we expect to pay to our pre-IPO owners in conjunction with the amended NOL Agreement and the 2013 settlement with the IRS. |
(8) | Excludes $162 million of unrecognized tax benefits due to the uncertainty in the timing of potential tax payments. |
(9) | Excludes $14 million of environmental remediation liabilities due to the uncertainty in the timing of payments. |
(10) | Excludes $5 million annual payments to CHS related to our embedded derivative through 2026 due to uncertainty of future credit ratings, as this is only applicable if our credit rating stays below certain levels from two of three specified credit rating agencies. See Note 9—Fair Value Measurements or Note 17—Noncontrolling Interests to our consolidated financial statements included in Item 8 of this report for additional information. |
North America Plans | |||||||||||||||
Increase/(Decrease) in | Increase/(Decrease) in | ||||||||||||||
December 31, 2016 PBO | 2016 Pension Expense | ||||||||||||||
Assumption | +50 bps | -50 bps | +50 bps | -50 bps | |||||||||||
( in millions) | |||||||||||||||
Discount Rate | $ | (43 | ) | $ | 47 | $ | (1 | ) | $ | 3 | |||||
EROA | N/A | N/A | (3 | ) | 3 |
United Kingdom Plans | |||||||||||||||
Increase/(Decrease) in | Increase/(Decrease) in | ||||||||||||||
December 31, 2016 PBO | 2016 Pension Expense | ||||||||||||||
Assumption | +50 bps | -50 bps | +50 bps | -50 bps | |||||||||||
( in millions) | |||||||||||||||
Discount Rate | $ | (45 | ) | $ | 50 | $ | — | $ | (1 | ) | |||||
EROA | N/A | N/A | (2 | ) | 2 | ||||||||||
RPI | 29 | (28 | ) | 1 | (1 | ) |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions, except per share amounts) | |||||||||||
Net sales | $ | 3,685 | $ | 4,308 | $ | 4,743 | |||||
Cost of sales | 2,845 | 2,761 | 2,965 | ||||||||
Gross margin | 840 | 1,547 | 1,778 | ||||||||
Selling, general and administrative expenses | 174 | 170 | 152 | ||||||||
Transaction costs | 179 | 57 | — | ||||||||
Other operating—net | 208 | 92 | 53 | ||||||||
Total other operating costs and expenses | 561 | 319 | 205 | ||||||||
Gain on sale of phosphate business | — | — | 750 | ||||||||
Equity in (losses) earnings of operating affiliates | (145 | ) | (35 | ) | 43 | ||||||
Operating earnings | 134 | 1,193 | 2,366 | ||||||||
Interest expense | 200 | 133 | 178 | ||||||||
Interest income | (5 | ) | (2 | ) | (1 | ) | |||||
Loss on debt extinguishment | 167 | — | — | ||||||||
Other non-operating—net | (2 | ) | 4 | 2 | |||||||
(Loss) earnings before income taxes and equity in earnings of non-operating affiliates | (226 | ) | 1,058 | 2,187 | |||||||
Income tax (benefit) provision | (68 | ) | 396 | 773 | |||||||
Equity in earnings of non-operating affiliates—net of taxes | — | 72 | 23 | ||||||||
Net (loss) earnings | (158 | ) | 734 | 1,437 | |||||||
Less: Net earnings attributable to noncontrolling interests | 119 | 34 | 47 | ||||||||
Net (loss) earnings attributable to common stockholders | $ | (277 | ) | $ | 700 | $ | 1,390 | ||||
Net (loss) earnings per share attributable to common stockholders: | |||||||||||
Basic | $ | (1.19 | ) | $ | 2.97 | $ | 5.43 | ||||
Diluted | $ | (1.19 | ) | $ | 2.96 | $ | 5.42 | ||||
Weighted-average common shares outstanding: | |||||||||||
Basic | 233.1 | 235.3 | 255.9 | ||||||||
Diluted | 233.1 | 236.1 | 256.7 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Net (loss) earnings | $ | (158 | ) | $ | 734 | $ | 1,437 | ||||
Other comprehensive (loss) income: | |||||||||||
Foreign currency translation adjustment—net of taxes | (74 | ) | (157 | ) | (72 | ) | |||||
Unrealized loss on hedging derivatives—net of taxes | — | — | (2 | ) | |||||||
Defined benefit plans—net of taxes | (74 | ) | 67 | (43 | ) | ||||||
(148 | ) | (90 | ) | (117 | ) | ||||||
Comprehensive (loss) income | (306 | ) | 644 | 1,320 | |||||||
Less: Comprehensive income attributable to noncontrolling interests | 119 | 34 | 47 | ||||||||
Comprehensive (loss) income attributable to common stockholders | $ | (425 | ) | $ | 610 | $ | 1,273 |
December 31, | |||||||
2016 | 2015 | ||||||
(in millions, except share and per share amounts) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,164 | $ | 286 | |||
Restricted cash | 5 | 23 | |||||
Accounts receivable—net | 236 | 267 | |||||
Inventories | 339 | 321 | |||||
Prepaid income taxes | 841 | 185 | |||||
Other current assets | 70 | 45 | |||||
Total current assets | 2,655 | 1,127 | |||||
Property, plant and equipment—net | 9,652 | 8,539 | |||||
Investments in affiliates | 139 | 298 | |||||
Goodwill | 2,345 | 2,390 | |||||
Other assets | 340 | 329 | |||||
Total assets | $ | 15,131 | $ | 12,683 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 638 | $ | 918 | |||
Income taxes payable | 1 | 5 | |||||
Customer advances | 42 | 162 | |||||
Other current liabilities | 5 | 130 | |||||
Total current liabilities | 686 | 1,215 | |||||
Long-term debt | 5,778 | 5,537 | |||||
Deferred income taxes | 1,630 | 916 | |||||
Other liabilities | 545 | 628 | |||||
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, 2016—233,141,771 shares issued and 2015—235,493,395 shares issued | 2 | 2 | |||||
Paid-in capital | 1,380 | 1,378 | |||||
Retained earnings | 2,365 | 3,058 | |||||
Treasury stock—at cost, 2016—27,602 shares and 2015—2,411,839 shares | (1 | ) | (153 | ) | |||
Accumulated other comprehensive loss | (398 | ) | (250 | ) | |||
Total stockholders' equity | 3,348 | 4,035 | |||||
Noncontrolling interests | 3,144 | 352 | |||||
Total equity | 6,492 | 4,387 | |||||
Total liabilities and equity | $ | 15,131 | $ | 12,683 |
Common Stockholders | |||||||||||||||||||||||||||||||
$0.01 Par Value Common Stock | Treasury Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 3 | $ | (202 | ) | $ | 1,592 | $ | 3,726 | $ | (43 | ) | $ | 5,076 | $ | 362 | $ | 5,438 | |||||||||||||
Net earnings | — | — | — | 1,390 | — | 1,390 | 47 | 1,437 | |||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment—net of taxes | — | — | — | — | (72 | ) | (72 | ) | — | (72 | ) | ||||||||||||||||||||
Unrealized net loss on hedging derivatives—net of taxes | — | — | — | — | (2 | ) | (2 | ) | — | (2 | ) | ||||||||||||||||||||
Defined benefit plans—net of taxes | — | — | — | — | (43 | ) | (43 | ) | — | (43 | ) | ||||||||||||||||||||
Comprehensive income | 1,273 | 47 | 1,320 | ||||||||||||||||||||||||||||
Purchases of treasury stock | — | (1,924 | ) | — | — | — | (1,924 | ) | — | (1,924 | ) | ||||||||||||||||||||
Retirement of treasury stock | (1 | ) | 1,906 | (220 | ) | (1,685 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock under employee stock plans | — | (3 | ) | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||||
Issuance of $0.01 par value common stock under employee stock plans | — | 1 | 17 | — | — | 18 | — | 18 | |||||||||||||||||||||||
Stock-based compensation expense | — | — | 17 | — | — | 17 | — | 17 | |||||||||||||||||||||||
Excess tax benefit from stock-based compensation | — | — | 8 | — | — | 8 | — | 8 | |||||||||||||||||||||||
Cash dividends ($1.00 per share) | — | — | — | (256 | ) | — | (256 | ) | — | (256 | ) | ||||||||||||||||||||
Distributions declared to noncontrolling interest | — | — | — | — | — | — | (46 | ) | (46 | ) | |||||||||||||||||||||
Balance as of December 31, 2014 | $ | 2 | $ | (222 | ) | $ | 1,414 | $ | 3,175 | $ | (160 | ) | $ | 4,209 | $ | 363 | $ | 4,572 | |||||||||||||
Net earnings | — | — | — | 700 | — | 700 | 34 | 734 | |||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment—net of taxes | — | — | — | — | (157 | ) | (157 | ) | — | (157 | ) | ||||||||||||||||||||
Defined benefit plans—net of taxes | — | — | — | — | 67 | 67 | — | 67 | |||||||||||||||||||||||
Comprehensive income | 610 | 34 | 644 | ||||||||||||||||||||||||||||
Purchases of treasury stock | — | (527 | ) | — | — | — | (527 | ) | — | (527 | ) | ||||||||||||||||||||
Retirement of treasury stock | — | 597 | (62 | ) | (535 | ) | — | — | — | — | |||||||||||||||||||||
Acquisition of treasury stock under employee stock plans | — | (2 | ) | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||
Issuance of $0.01 par value common stock under employee stock plans | — | 1 | 8 | — | — | 9 | — | 9 | |||||||||||||||||||||||
Stock-based compensation expense | — | — | 16 | — | — | 16 | — | 16 | |||||||||||||||||||||||
Excess tax benefit from stock-based compensation | — | — | 2 | — | — | 2 | — | 2 | |||||||||||||||||||||||
Cash dividends ($1.20 per share) | — | — | — | (282 | ) | — | (282 | ) | — | (282 | ) | ||||||||||||||||||||
Distributions declared to noncontrolling interest | — | — | — | — | — | — | (45 | ) | (45 | ) | |||||||||||||||||||||
Balance as of December 31, 2015 | $ | 2 | $ | (153 | ) | $ | 1,378 | $ | 3,058 | $ | (250 | ) | $ | 4,035 | $ | 352 | $ | 4,387 | |||||||||||||
Net loss | — | — | — | (277 | ) | — | (277 | ) | 119 | (158 | ) | ||||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment—net of taxes | — | — | — | — | (74 | ) | (74 | ) | — | (74 | ) | ||||||||||||||||||||
Defined benefit plans—net of taxes | — | — | — | — | (74 | ) | (74 | ) | — | (74 | ) | ||||||||||||||||||||
Comprehensive (loss) income | (425 | ) | 119 | (306 | ) | ||||||||||||||||||||||||||
Retirement of treasury stock | — | 150 | (14 | ) | (136 | ) | — | — | — | — | |||||||||||||||||||||
Acquisition of treasury stock under employee stock plans | — | (1 | ) | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Issuance of $0.01 par value common stock under employee stock plans | — | 3 | (3 | ) | — | — | — | — | — | ||||||||||||||||||||||
Stock-based compensation expense | — | — | 19 | — | — | 19 | — | 19 | |||||||||||||||||||||||
Cash dividends ($1.20 per share) | — | — | — | (280 | ) | — | (280 | ) | — | (280 | ) | ||||||||||||||||||||
Issuance of noncontrolling interest in CF Industries Nitrogen, LLC (CFN) | — | — | — | — | — | — | 2,792 | 2,792 | |||||||||||||||||||||||
Distributions declared to noncontrolling interests | — | — | — | — | — | — | (119 | ) | (119 | ) | |||||||||||||||||||||
Balance as of December 31, 2016 | $ | 2 | $ | (1 | ) | $ | 1,380 | $ | 2,365 | $ | (398 | ) | $ | 3,348 | $ | 3,144 | $ | 6,492 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Operating Activities: | |||||||||||
Net (loss) earnings | $ | (158 | ) | $ | 734 | $ | 1,437 | ||||
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 678 | 480 | 393 | ||||||||
Deferred income taxes | 739 | 78 | 18 | ||||||||
Stock-based compensation expense | 19 | 17 | 17 | ||||||||
Unrealized net (gain) loss on natural gas and foreign currency derivatives | (260 | ) | 163 | 119 | |||||||
Loss on embedded derivative | 23 | — | — | ||||||||
Gain on remeasurement of CF Fertilisers UK investment | — | (94 | ) | — | |||||||
Impairment of equity method investment in PLNL | 134 | 62 | — | ||||||||
Loss on sale of equity method investments | — | 43 | — | ||||||||
Loss on debt extinguishment | 167 | — | — | ||||||||
Gain on sale of phosphate business | — | — | (750 | ) | |||||||
Loss on disposal of property, plant and equipment | 10 | 21 | 4 | ||||||||
Undistributed loss (earnings) of affiliates—net of taxes | 9 | (3 | ) | (12 | ) | ||||||
Changes in: | |||||||||||
Accounts receivable—net | 18 | (4 | ) | 39 | |||||||
Inventories | (7 | ) | (71 | ) | 64 | ||||||
Accrued and prepaid income taxes | (676 | ) | (148 | ) | (57 | ) | |||||
Accounts payable and accrued expenses | (18 | ) | 42 | (53 | ) | ||||||
Customer advances | (120 | ) | (164 | ) | 205 | ||||||
Other—net | 59 | 51 | (3 | ) | |||||||
Net cash provided by operating activities | 617 | 1,207 | 1,421 | ||||||||
Investing Activities: | |||||||||||
Additions to property, plant and equipment | (2,211 | ) | (2,469 | ) | (1,809 | ) | |||||
Proceeds from sale of property, plant and equipment | 14 | 12 | 11 | ||||||||
Proceeds from sale of equity method investment | — | 13 | — | ||||||||
Proceeds from sale of phosphate business | — | — | 1,372 | ||||||||
Purchase of CF Fertilisers UK, net of cash acquired | — | (552 | ) | — | |||||||
Sales and maturities of short-term and auction rate securities | — | — | 5 | ||||||||
Deposits to restricted cash funds | — | — | (505 | ) | |||||||
Withdrawals from restricted cash funds | 18 | 63 | 573 | ||||||||
Other—net | 2 | (43 | ) | 9 | |||||||
Net cash used in investing activities | (2,177 | ) | (2,976 | ) | (344 | ) | |||||
Financing Activities: | |||||||||||
Proceeds from long-term borrowings | 1,244 | 1,000 | 1,494 | ||||||||
Payments of long-term borrowings | (1,170 | ) | — | — | |||||||
Proceeds from short-term borrowings | 150 | 367 | — | ||||||||
Payments of short-term borrowings | (150 | ) | (367 | ) | — | ||||||
Payment to CHS related to credit provision | (5 | ) | — | — | |||||||
Financing fees | (31 | ) | (47 | ) | (16 | ) | |||||
Purchases of treasury stock | — | (556 | ) | (1,935 | ) | ||||||
Dividends paid on common stock | (280 | ) | (282 | ) | (256 | ) | |||||
Issuance of noncontrolling interest in CFN | 2,800 | — | — | ||||||||
Distributions to noncontrolling interests | (119 | ) | (45 | ) | (46 | ) | |||||
Issuances of common stock under employee stock plans | — | 8 | 18 | ||||||||
Shares withheld for taxes | — | (1 | ) | (3 | ) | ||||||
Other—net | — | — | (43 | ) | |||||||
Net cash provided by (used in) financing activities | 2,439 | 77 | (787 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (1 | ) | (19 | ) | (4 | ) | |||||
Increase (decrease) in cash and cash equivalents | 878 | (1,711 | ) | 286 | |||||||
Cash and cash equivalents at beginning of period | 286 | 1,997 | 1,711 | ||||||||
Cash and cash equivalents at end of period | $ | 1,164 | $ | 286 | $ | 1,997 |
• | four U.S. nitrogen fertilizer manufacturing facilities located in: Donaldsonville, Louisiana; Port Neal, Iowa; Yazoo City, Mississippi; and Woodward, Oklahoma. These facilities are owned by CF Industries Nitrogen, LLC (CFN), in which we own a majority equity interest and CHS Inc. (CHS) owns a minority equity interest See Note 17—Noncontrolling Interests for additional information on our strategic venture with CHS; |
• | an approximately 75.3% interest in Terra Nitrogen Company, L.P. (TNCLP), a publicly-traded limited partnership of which we are the sole general partner and the majority limited partner and which, through its subsidiary Terra Nitrogen, Limited Partnership (TNLP), operates a nitrogen fertilizer manufacturing facility in Verdigris, Oklahoma; |
• | two Canadian nitrogen fertilizer manufacturing facilities, located in Medicine Hat, Alberta and Courtright, Ontario; |
• | two United Kingdom nitrogen manufacturing complexes, located in Ince and Billingham; |
• | an extensive system of terminals and associated transportation equipment located primarily in the midwestern United States; and |
• | a 50% interest in Point Lisas Nitrogen Limited (PLNL), an ammonia production joint venture located in the Republic of Trinidad and Tobago that we account for under the equity method. |
Years | |
Mobile and office equipment | 3 to 10 |
Production facilities and related assets | 2 to 30 |
Land improvements | 10 to 30 |
Buildings | 10 to 40 |
Original Valuation | Net Adjustments to Fair Value in 2015 | December 31, 2015 | Net Adjustments to Fair Value in 2016(1) | Final Valuation | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Fair value of consideration transferred | $ | 570 | $ | — | $ | 570 | $ | — | $ | 570 | ||||||||||
Fair value of 50% of equity interest already held by the Company | 570 | — | 570 | — | 570 | |||||||||||||||
Total fair value | $ | 1,140 | $ | — | $ | 1,140 | $ | — | $ | 1,140 | ||||||||||
Assets acquired and liabilities assumed | ||||||||||||||||||||
Current assets | $ | 165 | $ | 1 | $ | 166 | $ | — | $ | 166 | ||||||||||
Property, plant and equipment | 898 | — | 898 | — | 898 | |||||||||||||||
Goodwill | 328 | (8 | ) | 320 | 4 | 324 | ||||||||||||||
Other assets | 140 | (1 | ) | 139 | — | 139 | ||||||||||||||
Total assets acquired | 1,531 | (8 | ) | 1,523 | 4 | 1,527 | ||||||||||||||
Current liabilities | 74 | 1 | 75 | — | 75 | |||||||||||||||
Deferred income taxes | 129 | (9 | ) | 120 | 4 | 124 | ||||||||||||||
Other liabilities | 188 | — | 188 | — | 188 | |||||||||||||||
Total liabilities assumed | 391 | (8 | ) | 383 | 4 | 387 | ||||||||||||||
Total net assets acquired | $ | 1,140 | $ | — | $ | 1,140 | $ | — | $ | 1,140 |
(1) | In July 2016, final adjustments were made to the fair value of the assets acquired and liabilities assumed, which resulted in a corresponding $4 million increase to goodwill. |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions, except per share amounts) | |||||||||||
Net (loss) earnings attributable to common stockholders | $ | (277 | ) | $ | 700 | $ | 1,390 | ||||
Basic earnings per common share: | |||||||||||
Weighted-average common shares outstanding | 233.1 | 235.3 | 255.9 | ||||||||
Net (loss) earnings attributable to common stockholders | $ | (1.19 | ) | $ | 2.97 | $ | 5.43 | ||||
Diluted earnings per common share: | |||||||||||
Weighted-average common shares outstanding | 233.1 | 235.3 | 255.9 | ||||||||
Dilutive common shares—stock options | — | 0.8 | 0.8 | ||||||||
Diluted weighted-average shares outstanding | 233.1 | 236.1 | 256.7 | ||||||||
Net (loss) earnings attributable to common stockholders | $ | (1.19 | ) | $ | 2.96 | $ | 5.42 |
December 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Land | $ | 69 | $ | 68 | |||
Machinery and equipment | 11,664 | 7,348 | |||||
Buildings and improvements | 878 | 271 | |||||
Construction in progress(1) | 280 | 3,626 | |||||
12,891 | 11,313 | ||||||
Less: Accumulated depreciation and amortization | 3,239 | 2,774 | |||||
$ | 9,652 | $ | 8,539 |
(1) | As of December 31, 2016 and 2015, we had property, plant and equipment that was accrued but unpaid of approximately $225 million and $543 million, respectively. These amounts included accruals related to our capacity expansion projects of $185 million and $471 million as of December 31, 2016 and 2015, respectively. |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Net capitalized turnaround costs at beginning of the year | $ | 220 | $ | 153 | $ | 120 | |||||
Additions | 74 | 135 | 88 | ||||||||
Depreciation | (89 | ) | (65 | ) | (54 | ) | |||||
Effect of exchange rate changes | 1 | (3 | ) | (1 | ) | ||||||
Net capitalized turnaround costs at end of the year | $ | 206 | $ | 220 | $ | 153 |
Ammonia | Granular Urea | UAN | AN | Other | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance as of December 31, 2015 | $ | 587 | $ | 828 | $ | 576 | $ | 324 | $ | 75 | $ | 2,390 | |||||||||||
CF Fertilisers UK(1) | — | — | — | 3 | 1 | 4 | |||||||||||||||||
Effect of exchange rate changes | (2 | ) | — | — | (41 | ) | (6 | ) | (49 | ) | |||||||||||||
Balance as of December 31, 2016 | $ | 585 | $ | 828 | $ | 576 | $ | 286 | $ | 70 | $ | 2,345 |
(1) | In July 2016, final adjustments were made to the fair value of the assets acquired and liabilities assumed in the acquisition of the remaining 50% equity interest in CF Fertilisers UK not previously owned by us, which resulted in a corresponding $4 million increase to goodwill. See Note 4—Acquisitions and Divestitures for additional information. |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||||
Customer relationships | $ | 125 | $ | (24 | ) | $ | 101 | $ | 140 | $ | (18 | ) | $ | 122 | |||||||||
TerraCair brand | 10 | (10 | ) | — | 10 | (10 | ) | — | |||||||||||||||
Trade names | 29 | (2 | ) | 27 | 35 | (1 | ) | 34 | |||||||||||||||
Total intangible assets | $ | 164 | $ | (36 | ) | $ | 128 | $ | 185 | $ | (29 | ) | $ | 156 |
Estimated Amortization Expense | |||
(in millions) | |||
2017 | $ | 9 | |
2018 | 9 | ||
2019 | 9 | ||
2020 | 9 | ||
2021 | 9 |
December 31, 2016 | |||||||||||||||
Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Cash | $ | 89 | $ | — | $ | — | $ | 89 | |||||||
Cash equivalents: | |||||||||||||||
U.S. and Canadian government obligations | 1,075 | — | — | 1,075 | |||||||||||
Total cash and cash equivalents | $ | 1,164 | $ | — | $ | — | $ | 1,164 | |||||||
Restricted cash | 5 | — | — | 5 | |||||||||||
Nonqualified employee benefit trusts | 18 | 1 | — | 19 |
December 31, 2015 | |||||||||||||||
Cost Basis | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Cash | $ | 71 | $ | — | $ | — | $ | 71 | |||||||
Cash equivalents: | |||||||||||||||
U.S. and Canadian government obligations | 190 | — | — | 190 | |||||||||||
Other debt securities | 25 | — | — | 25 | |||||||||||
Total cash and cash equivalents | $ | 286 | $ | — | $ | — | $ | 286 | |||||||
Restricted cash | 23 | — | — | 23 | |||||||||||
Nonqualified employee benefit trusts | 17 | 2 | — | 19 |
December 31, 2016 | |||||||||||||||
Total Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in millions) | |||||||||||||||
Cash equivalents | $ | 1,075 | $ | 1,075 | $ | — | $ | — | |||||||
Restricted cash | 5 | 5 | — | — | |||||||||||
Derivative assets | 56 | — | 56 | — | |||||||||||
Nonqualified employee benefit trusts | 19 | 19 | — | — | |||||||||||
Derivative liabilities | (6 | ) | — | (6 | ) | — | |||||||||
Embedded derivative liability | (26 | ) | — | (26 | ) | — |
December 31, 2015 | |||||||||||||||
Total Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in millions) | |||||||||||||||
Cash equivalents | $ | 215 | $ | 215 | $ | — | $ | — | |||||||
Restricted cash | 23 | 23 | — | — | |||||||||||
Nonqualified employee benefit trusts | 19 | 19 | — | — | |||||||||||
Derivative liabilities | (211 | ) | — | (211 | ) | — |
December 31, | |||||||||||||||
2016 | 2015 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Long-term debt | $ | 5,778 | $ | 5,506 | $ | 5,537 | $ | 5,456 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Domestic | $ | (43 | ) | $ | 1,031 | $ | 2,073 | ||||
Non-U.S. | (183 | ) | 27 | 114 | |||||||
$ | (226 | ) | $ | 1,058 | $ | 2,187 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Current | |||||||||||
Federal | $ | (795 | ) | $ | 258 | $ | 645 | ||||
Foreign | 11 | 20 | 30 | ||||||||
State | (23 | ) | 39 | 79 | |||||||
(807 | ) | 317 | 754 | ||||||||
Deferred | |||||||||||
Federal | 761 | 76 | 12 | ||||||||
Foreign | (1 | ) | (13 | ) | (8 | ) | |||||
State | (21 | ) | 16 | 15 | |||||||
739 | 79 | 19 | |||||||||
Income tax (benefit) provision | $ | (68 | ) | $ | 396 | $ | 773 |
Year ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(in millions, except percentages) | ||||||||||||
(Loss) earnings before income taxes and equity in earnings of non-operating affiliates | $ | (226 | ) | $ | 1,058 | $ | 2,187 | |||||
Expected tax (benefit) provision at U.S. statutory rate of 35% | (79 | ) | 370 | 765 | ||||||||
State income taxes, net of federal | (33 | ) | 32 | 62 | ||||||||
Net earnings attributable to noncontrolling interests | (42 | ) | (12 | ) | (16 | ) | ||||||
U.S. manufacturing profits deduction | 39 | (17 | ) | (28 | ) | |||||||
Foreign tax rate differential | 30 | (17 | ) | (40 | ) | |||||||
U.S. tax on foreign earnings | (10 | ) | — | 9 | ||||||||
Depletion | — | — | (1 | ) | ||||||||
Valuation allowance | 50 | 16 | 18 | |||||||||
Non-deductible capital costs | (17 | ) | 18 | — | ||||||||
Other | (6 | ) | 6 | 4 | ||||||||
Income tax (benefit) provision | $ | (68 | ) | $ | 396 | $ | 773 | |||||
Effective tax rate | 30.0 | % | 37.4 | % | 35.3 | % |
December 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Deferred tax assets: | |||||||
Net operating loss and capital loss carryforwards, principally in foreign jurisdictions | $ | 187 | $ | 100 | |||
Retirement and other employee benefits | 121 | 95 | |||||
Unrealized loss on hedging derivatives | 9 | 68 | |||||
Intangible asset | 34 | 60 | |||||
Federal tax settlement | — | 14 | |||||
Other | 140 | 111 | |||||
491 | 448 | ||||||
Valuation allowance | (159 | ) | (109 | ) | |||
332 | 339 | ||||||
Deferred tax liabilities: | |||||||
Depreciation and amortization | (1,909 | ) | (1,209 | ) | |||
Foreign earnings | (28 | ) | (28 | ) | |||
Unrealized gain on hedging derivatives | (19 | ) | (3 | ) | |||
Other | (6 | ) | (15 | ) | |||
(1,962 | ) | (1,255 | ) | ||||
Net deferred tax liability | $ | (1,630 | ) | $ | (916 | ) |
December 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Unrecognized tax benefits: | |||||||
Beginning balance | $ | 155 | $ | 136 | |||
Additions for tax positions taken during the current year | — | 2 | |||||
Additions for tax positions taken during prior years | 2 | 18 | |||||
Reductions related to lapsed statutes of limitations | (7 | ) | (1 | ) | |||
Reductions related to settlements with tax jurisdictions | (16 | ) | — | ||||
Ending balance | $ | 134 | $ | 155 |
Pension Plans | Retiree Medical Plans | ||||||||||||||||||||||
North America | United Kingdom | North America | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets as of January 1 | $ | 627 | $ | 665 | $ | 414 | $ | — | $ | — | $ | — | |||||||||||
Acquisition of CF Fertilisers UK plans | — | — | — | 442 | — | — | |||||||||||||||||
Return on plan assets | 39 | 3 | 21 | (4 | ) | — | — | ||||||||||||||||
Employer contributions | 4 | 19 | 19 | 9 | 4 | 4 | |||||||||||||||||
Plan participant contributions | — | — | — | — | 1 | 1 | |||||||||||||||||
Benefit payments | (38 | ) | (38 | ) | (19 | ) | (8 | ) | (5 | ) | (5 | ) | |||||||||||
Foreign currency translation | 4 | (22 | ) | (69 | ) | (25 | ) | — | — | ||||||||||||||
Fair value of plan assets as of December 31 | 636 | 627 | 366 | 414 | — | — | |||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||
Benefit obligation as of January 1 | (736 | ) | (788 | ) | (563 | ) | — | (56 | ) | (63 | ) | ||||||||||||
Acquisition of CF Fertilisers UK plans | — | — | — | (618 | ) | — | — | ||||||||||||||||
Service cost | (14 | ) | (14 | ) | — | — | — | — | |||||||||||||||
Interest cost | (31 | ) | (30 | ) | (19 | ) | (9 | ) | (2 | ) | (2 | ) | |||||||||||
Benefit payments | 38 | 38 | 19 | 8 | 5 | 5 | |||||||||||||||||
Foreign currency translation | (3 | ) | 21 | 99 | 34 | — | 1 | ||||||||||||||||
Plan participant contributions | — | — | — | — | (1 | ) | (1 | ) | |||||||||||||||
Change in assumptions and other | (13 | ) | 37 | (95 | ) | 22 | 2 | 4 | |||||||||||||||
Benefit obligation as of December 31 | (759 | ) | (736 | ) | (559 | ) | (563 | ) | (52 | ) | (56 | ) | |||||||||||
Funded status as of year end | $ | (123 | ) | $ | (109 | ) | $ | (193 | ) | $ | (149 | ) | $ | (52 | ) | $ | (56 | ) |
Pension Plans | Retiree Medical Plans | ||||||||||||||||||||||
North America | United Kingdom | North America | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Other assets | $ | 7 | $ | 9 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Accrued expenses | — | — | — | — | (5 | ) | (5 | ) | |||||||||||||||
Other liabilities | (130 | ) | (118 | ) | (193 | ) | (149 | ) | (47 | ) | (51 | ) | |||||||||||
$ | (123 | ) | $ | (109 | ) | $ | (193 | ) | $ | (149 | ) | $ | (52 | ) | $ | (56 | ) |
Pension Plans | Retiree Medical Plans | ||||||||||||||||||||||
North America | United Kingdom | North America | |||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Prior service cost (benefit) | $ | 1 | $ | 1 | $ | — | $ | — | $ | (4 | ) | $ | (4 | ) | |||||||||
Net actuarial loss (gain) | 91 | 88 | 80 | (8 | ) | 7 | 8 | ||||||||||||||||
$ | 92 | $ | 89 | $ | 80 | $ | (8 | ) | $ | 3 | $ | 4 |
Pension Plans | Retiree Medical Plans | ||||||||||||||||||||||||||||||
North America | United Kingdom | North America | |||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Service cost | $ | 14 | $ | 14 | $ | 13 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Interest cost | 31 | 30 | 35 | 19 | 9 | 2 | 2 | 3 | |||||||||||||||||||||||
Expected return on plan assets | (30 | ) | (28 | ) | (36 | ) | (20 | ) | (9 | ) | — | — | — | ||||||||||||||||||
Settlement charge | — | — | 10 | — | — | — | — | — | |||||||||||||||||||||||
Curtailment loss | — | — | — | — | — | — | — | 2 | |||||||||||||||||||||||
Amortization of prior service cost (benefit) | — | — | — | — | — | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||
Amortization of actuarial loss (gain) | 1 | 6 | 2 | — | — | (1 | ) | 1 | — | ||||||||||||||||||||||
Net periodic benefit cost (income) | 16 | 22 | 24 | (1 | ) | — | — | 2 | 4 | ||||||||||||||||||||||
Net actuarial (gain) loss | 4 | (11 | ) | 78 | 94 | (8 | ) | (2 | ) | (4 | ) | 4 | |||||||||||||||||||
Prior service cost | — | — | — | — | — | — | — | (7 | ) | ||||||||||||||||||||||
Curtailment effects | — | — | (14 | ) | — | — | — | — | — | ||||||||||||||||||||||
Settlement effects | — | — | (10 | ) | — | — | — | — | — | ||||||||||||||||||||||
Amortization of prior service benefit | — | — | — | — | — | 1 | 1 | 1 | |||||||||||||||||||||||
Amortization of actuarial loss | (1 | ) | (6 | ) | (2 | ) | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||
Total recognized in accumulated other comprehensive loss | 3 | (17 | ) | 52 | 94 | (8 | ) | (1 | ) | (4 | ) | (3 | ) | ||||||||||||||||||
Total recognized in net periodic benefit cost (income) and accumulated other comprehensive loss | $ | 19 | $ | 5 | $ | 76 | $ | 93 | $ | (8 | ) | $ | (1 | ) | $ | (2 | ) | $ | 1 |
• | a curtailment gain for our U.S. pension plan, which resulted in a reduction of $14 million in our pension benefit obligation (PBO) and a corresponding increase in other comprehensive income; |
• | a decrease of $7 million in our U.S. retiree medical benefit obligation due to a plan amendment, with a corresponding increase in other comprehensive income (included in "prior service cost" in the table above); and |
• | a $2 million curtailment loss related to terminated vested participants in our U.S. retiree medical plan. |
Pension Plans | Retiree Medical Plans | ||||||||||
North America | United Kingdom | North America | |||||||||
(in millions) | |||||||||||
Prior service cost (benefit) | $ | — | $ | — | $ | (1 | ) | ||||
Net actuarial loss (gain) | 1 | 1 | (1 | ) |
North America | United Kingdom | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions) | |||||||||||||||
Accumulated benefit obligation | $ | (599 | ) | $ | (586 | ) | $ | (559 | ) | $ | (563 | ) | |||
Fair value of plan assets | 508 | 506 | 366 | 414 |
North America | United Kingdom | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions) | |||||||||||||||
Projected benefit obligation | $ | (699 | ) | $ | (679 | ) | $ | (559 | ) | $ | (563 | ) | |||
Fair value of plan assets | 568 | 561 | 366 | 414 |
Pension Plans | Retiree Medical Plans | ||||||||||
North America | United Kingdom | North America | |||||||||
(in millions) | |||||||||||
2017 | $ | 42 | $ | 18 | $ | 5 | |||||
2018 | 43 | 18 | 5 | ||||||||
2019 | 45 | 19 | 4 | ||||||||
2020 | 46 | 19 | 4 | ||||||||
2021 | 47 | 20 | 4 | ||||||||
2022-2026 | 246 | 107 | 15 |
Pension Plans | Retiree Medical Plans | ||||||||||||||||||||||
North America | United Kingdom | North America | |||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2016 | 2015 | 2014 | ||||||||||||||||
Weighted-average discount rate—obligation | 4.0 | % | 4.3 | % | 4.0 | % | 2.8 | % | 3.8 | % | 3.8 | % | 3.9 | % | 3.6 | % | |||||||
Weighted-average discount rate—expense | 4.3 | % | 4.0 | % | 4.8 | % | 3.8 | % | 3.7 | % | 3.9 | % | 3.6 | % | 4.2 | % | |||||||
Weighted-average rate of increase in future compensation | 4.3 | % | 4.3 | % | 4.3 | % | n/a | n/a | n/a | n/a | n/a | ||||||||||||
Weighted-average expected long-term rate of return on assets—expense | 4.9 | % | 4.8 | % | 5.5 | % | 5.2 | % | 5.4 | % | n/a | n/a | n/a | ||||||||||
Weighted-average retail price index—obligation | n/a | n/a | n/a | 3.3 | % | 3.1 | % | n/a | n/a | n/a | |||||||||||||
Weighted-average retail price index—expense | n/a | n/a | n/a | 3.1 | % | 3.1 | % | n/a | n/a | n/a |
One-Percentage-Point | |||||||
Increase | Decrease | ||||||
(in millions) | |||||||
Effect on total service and interest cost for 2016 | $ | — | $ | — | |||
Effect on benefit obligation as of December 31, 2016 | 6 | (5 | ) |
North America | |||||||||||||||
December 31, 2016 | |||||||||||||||
Total Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in millions) | |||||||||||||||
Cash and cash equivalents(1) | $ | 39 | $ | 6 | $ | 33 | $ | — | |||||||
Equity mutual funds | |||||||||||||||
Index equity(2) | 112 | 112 | — | — | |||||||||||
Pooled equity(3) | 41 | — | 41 | — | |||||||||||
Fixed income | |||||||||||||||
U.S. Treasury bonds and notes(4) | 14 | 14 | — | — | |||||||||||
Pooled mutual funds(5) | 86 | — | 86 | — | |||||||||||
Corporate bonds and notes(6) | 329 | — | 329 | — | |||||||||||
Government and agency securities(7) | 15 | — | 15 | — | |||||||||||
Other(8) | 1 | — | 1 | — | |||||||||||
Total assets at fair value by fair value levels | $ | 637 | $ | 132 | $ | 505 | $ | — | |||||||
Accruals and payables—net | (1 | ) | |||||||||||||
Total assets | $ | 636 |
United Kingdom | |||||||||||||||
December 31, 2016 | |||||||||||||||
Total Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in millions) | |||||||||||||||
Cash | $ | 3 | $ | 3 | $ | — | $ | — | |||||||
Pooled target return funds(9) | 185 | — | 185 | — | |||||||||||
Fixed income | — | ||||||||||||||
Pooled UK government index-linked securities(10) | 28 | — | 28 | — | |||||||||||
Pooled global fixed income funds(11) | 114 | — | 114 | — | |||||||||||
Total assets at fair value by fair value levels | $ | 330 | $ | 3 | $ | 327 | $ | — | |||||||
Assets measured at NAV as a practical expedient | |||||||||||||||
Pooled property funds(12) | 36 | ||||||||||||||
Total assets measured at NAV as a practical expedient | 36 | ||||||||||||||
Total assets at fair value | 366 | ||||||||||||||
Accruals and payables—net | — | ||||||||||||||
Total assets | $ | 366 |
North America | |||||||||||||||
December 31, 2015 | |||||||||||||||
Total Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in millions) | |||||||||||||||
Cash and cash equivalents(1) | $ | 32 | $ | 32 | $ | — | $ | — | |||||||
Equity mutual funds | |||||||||||||||
Index equity(2) | 103 | 103 | — | — | |||||||||||
Pooled equity(3) | 39 | — | 39 | — | |||||||||||
Fixed income | |||||||||||||||
U.S. Treasury bonds and notes(4) | 11 | 11 | — | — | |||||||||||
Pooled mutual funds(5) | 82 | — | 82 | — | |||||||||||
Corporate bonds and notes(6) | 338 | — | 338 | — | |||||||||||
Government and agency securities(7) | 21 | — | 21 | — | |||||||||||
Other(8) | 2 | — | 2 | — | |||||||||||
Total assets at fair value by fair value levels | $ | 628 | $ | 146 | $ | 482 | $ | — | |||||||
Accruals and payables—net | (1 | ) | |||||||||||||
Total assets | $ | 627 |
United Kingdom | |||||||||||||||
December 31, 2015 | |||||||||||||||
Total Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in millions) | |||||||||||||||
Cash | $ | 3 | $ | 3 | $ | — | $ | — | |||||||
Pooled target return funds(9) | 216 | — | 216 | — | |||||||||||
Fixed income | |||||||||||||||
Pooled UK government index-linked securities(10) | 26 | — | 26 | — | |||||||||||
Pooled global fixed income funds(11) | 127 | — | 127 | — | |||||||||||
Total assets at fair value by fair value levels | $ | 372 | $ | 3 | $ | 369 | $ | — | |||||||
Assets measured at NAV as a practical expedient | |||||||||||||||
Pooled property funds(12) | 42 | ||||||||||||||
Total assets measured at NAV as a practical expedient | 42 | ||||||||||||||
Total assets at fair value | 414 | ||||||||||||||
Accruals and payables—net | — | ||||||||||||||
Total assets | $ | 414 |
(1) | Cash and cash equivalents are primarily repurchase agreements, short-term money market funds, and short-term federal home loan discount notes. |
(2) | The index equity funds are mutual funds that utilize a passively managed investment approach designed to track specific equity indices. They are valued at quoted market prices in an active market, which represent the net asset values of the shares held by the plan. |
(3) | The equity pooled mutual funds consist of pooled funds that invest in common stock and other equity securities that are traded on U.S., Canadian, and foreign markets. |
(4) | U.S. Treasury bonds and notes are valued based on quoted market prices in an active market. |
(5) | The fixed income pooled mutual funds invest in investment-grade corporate debt, various governmental debt obligations, and mortgage-backed securities with varying maturities. |
(6) | Corporate bonds and notes, including private placement securities, are valued by institutional bond pricing services, which gather information from market sources and integrate credit information, observed market movements and sector news into their pricing applications and models. |
(7) | Government and agency securities consist of municipal bonds that are valued by institutional bond pricing services, which gather information on current trading activity, market movements, trends, and specific data on specialty issues. |
(8) | Other includes primarily mortgage-backed and asset-backed securities, which are valued by institutional pricing services, which gather information from market sources and integrate credit information, observed market movements and sector news into their pricing applications and models. |
(9) | Pooled target return funds invest in a broad array of asset classes and a range of diversifiers including the use of derivatives. The funds are valued at net asset value (NAV) as determined by the fund managers based on the value of the underlying net assets of the fund. |
(10) | Pooled United Kingdom government index-linked funds invest primarily in United Kingdom government index-linked gilt securities. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. |
(11) | Pooled global fixed income funds invest primarily in government bonds, investment grade corporate bonds, high yield and emerging market bonds and can make use of derivatives. The funds are valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund. |
(12) | Pooled property funds invest primarily in freehold and leasehold property in the United Kingdom. The funds are valued using NAV as a practical expedient. NAV is determined by the fund managers based on the value of the underlying net assets of the fund. |
(i) | restrict the ratio of total secured debt to EBITDA (as defined in the Revolving Credit Agreement) for the period of four consecutive fiscal quarters most recently ended to a maximum of 3.75:1.00, |
(ii) | require the ratio of EBITDA for the period of four consecutive fiscal quarters most recently ended to consolidated interest expense (as defined in the Revolving Credit Agreement) for the period of four consecutive fiscal quarters most recently ended to be a minimum of 1.20:1.00 for the fiscal quarters ending on or prior to December 31, 2018, and 1.50:1.00 thereafter, and |
(iii) | require the ratio of total debt to total capitalization as of the last day of any fiscal quarter to be less than or equal to 0.60:1.00. |
Effective Interest Rate | December 31, 2016 | December 31, 2015 | |||||||||||||||
Principal | Carrying Amount (1) | Principal | Carrying Amount (1)(2) | ||||||||||||||
(in millions) | |||||||||||||||||
Public Senior Notes: | |||||||||||||||||
6.875% due 2018 | 7.344% | $ | 800 | $ | 795 | $ | 800 | $ | 792 | ||||||||
7.125% due 2020 | 7.529% | 800 | 791 | 800 | 788 | ||||||||||||
3.450% due 2023 | 3.562% | 750 | 745 | 750 | 745 | ||||||||||||
5.150% due 2034 | 5.279% | 750 | 739 | 750 | 739 | ||||||||||||
4.950% due 2043 | 5.031% | 750 | 741 | 750 | 741 | ||||||||||||
5.375% due 2044 | 5.465% | 750 | 741 | 750 | 740 | ||||||||||||
Senior Secured Notes: | |||||||||||||||||
3.400% due 2021 | 3.784% | 500 | 491 | — | — | ||||||||||||
4.500% due 2026 | 4.760% | 750 | 735 | — | — | ||||||||||||
Private Senior Notes: | |||||||||||||||||
4.490% due 2022 | 4.664% | — | — | 250 | 248 | ||||||||||||
4.930% due 2025 | 5.061% | — | — | 500 | 496 | ||||||||||||
5.030% due 2027 | 5.145% | — | — | 250 | 248 | ||||||||||||
Total long-term debt | $ | 5,850 | $ | 5,778 | $ | 5,600 | $ | 5,537 |
(1) | Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $12 million and $7 million as of December 31, 2016 and December 31, 2015, respectively, and total deferred debt issuance costs were $60 million and $56 million as of December 31, 2016 and December 31, 2015, respectively. |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Interest on borrowings(1) | $ | 303 | $ | 267 | $ | 238 | |||||
Fees on financing agreements(1)(2)(3) | 59 | 17 | 11 | ||||||||
Interest on tax liabilities | 4 | 3 | 3 | ||||||||
Interest capitalized | (166 | ) | (154 | ) | (74 | ) | |||||
Interest expense | $ | 200 | $ | 133 | $ | 178 |
(1) | See Note 12—Financing Agreements for additional information. |
(2) | Fees on financing agreements for the year ended December 31, 2016 includes $28 million of fees related to the termination of the tranche B commitment under the bridge credit agreement as a result of the termination of the Combination Agreement. Fees on financing agreements for the year ended December 31, 2015 includes $6 million of accelerated amortization of deferred fees related to the termination in September 2015 of the tranche A commitment under the bridge credit agreement. See Note 4—Acquisitions and Divestitures additional information. |
(3) | Fees on financing agreements for the year ended December 31, 2016 includes $9 million of accelerated amortization of deferred fees related to the payment of the Private Senior Notes in November 2016, $2 million of accelerated amortization of deferred fees related to the July 2016 Credit Agreement Amendment, which reduced the Revolving Credit Facility to $1.5 billion from $2.0 billion, and $4 million of accelerated amortization of deferred fees related to the November 2016 Credit Agreement Amendment, which reduced the Revolving Credit Facility to $750 million from $1.5 billion. See Note 12—Financing Agreements for additional information. |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Loss on disposal of property, plant and equipment—net | $ | 10 | $ | 21 | $ | 4 | |||||
Expansion project costs(1) | 73 | 51 | 30 | ||||||||
Loss on foreign currency derivatives(2) | — | 22 | 38 | ||||||||
Loss (gain) on foreign currency transactions(3) | 93 | (8 | ) | (15 | ) | ||||||
Loss on embedded derivative(4) | 23 | — | — | ||||||||
Closed facilities costs | — | — | 1 | ||||||||
Other | 9 | 6 | (5 | ) | |||||||
Other operating—net | $ | 208 | $ | 92 | $ | 53 |
(1) | Expansion project costs that did not qualify for capitalization include amounts related to administrative and consulting services for our capacity expansion projects in Port Neal, Iowa and Donaldsonville, Louisiana. |
(2) | See Note 15—Derivative Financial Instruments for additional information. |
(3) | Loss (gain) on foreign currency transactions primarily relates to the unrealized foreign currency exchange rate impact on intercompany debt that has not been permanently invested. |
(4) | The loss on embedded derivative consists of unrealized and realized losses related to a provision of our strategic venture with CHS. See Note 9—Fair Value Measurements for additional information. |
Gain (loss) in income | |||||||||||||
Year ended December 31, | |||||||||||||
Location | 2016 | 2015 | 2014 | ||||||||||
(in millions) | |||||||||||||
Natural gas derivatives | Cost of sales | $ | 260 | $ | (176 | ) | $ | (79 | ) | ||||
Foreign exchange contracts | Other operating—net | — | 22 | (44 | ) | ||||||||
Unrealized gains (losses) recognized in income | 260 | (154 | ) | (123 | ) | ||||||||
Realized (losses) gains | (133 | ) | (114 | ) | 64 | ||||||||
Net derivative gains (losses) | $ | 127 | $ | (268 | ) | $ | (59 | ) |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Balance Sheet Location | December 31, | Balance Sheet Location | December 31, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||
Natural gas derivatives | Other current assets | $ | 52 | $ | — | Other current liabilities | $ | — | $ | (130 | ) | ||||||||
Natural gas derivatives | Other assets | 4 | — | Other liabilities | (6 | ) | (81 | ) | |||||||||||
Total derivatives | $ | 56 | $ | — | $ | (6 | ) | $ | (211 | ) |
• | Settlement netting generally allows us and our counterparties to net, into a single net payable or receivable, ordinary settlement obligations arising between us under the ISDA agreement on the same day, in the same currency, for the same types of derivative instruments, and through the same pairing of offices. |
• | Close-out netting rights are provided in the event of a default or other termination event (as defined in the ISDA agreements), including bankruptcy. Depending on the cause of early termination, the non-defaulting party may elect to terminate all or some transactions outstanding under the ISDA agreement. The values of all terminated transactions and certain other payments under the ISDA agreement are netted, resulting in a single net close-out amount payable to or by the non-defaulting party. Termination values may be determined using a mark-to-market approach or based on a party's good faith estimate of its loss. If the final net close-out amount is payable by the non-defaulting party, that party's obligation to make the payment may be conditioned on factors such as the termination of all derivative transactions between the parties or payment in full of all of the defaulting party's obligations to the non-defaulting party, in each case regardless of whether arising under the ISDA agreement or otherwise. |
• | Setoff rights are provided by certain of our ISDA agreements and generally allow a non-defaulting party to elect to set off, against the final net close-out payment, other matured and contingent amounts payable between us and our counterparties under the ISDA agreement or otherwise. Typically, these setoff rights arise upon the early termination of all transactions outstanding under an ISDA agreement following a default or specified termination event. |
Amounts presented in consolidated balance sheets(1) | Gross amounts not offset in consolidated balance sheets | ||||||||||||||
Financial instruments | Cash collateral received (pledged) | Net amount | |||||||||||||
(in millions) | |||||||||||||||
December 31, 2016 | |||||||||||||||
Total derivative assets | $ | 56 | $ | 6 | $ | — | $ | 50 | |||||||
Total derivative liabilities | 6 | 6 | — | — | |||||||||||
Net derivative assets | $ | 50 | $ | — | $ | — | $ | 50 | |||||||
December 31, 2015 | |||||||||||||||
Total derivative assets | $ | — | $ | — | $ | — | $ | — | |||||||
Total derivative liabilities | 211 | — | — | 211 | |||||||||||
Net derivative liabilities | $ | (211 | ) | $ | — | $ | — | $ | (211 | ) |
(1) | We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, the gross amounts recognized and net amounts presented herein are the same. |
December 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Trade | $ | 227 | $ | 210 | |||
Other | 9 | 57 | |||||
Accounts receivable—net | $ | 236 | $ | 267 |
December 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Finished goods | $ | 279 | $ | 286 | |||
Raw materials, spare parts and supplies | 60 | 35 | |||||
Total inventories | $ | 339 | $ | 321 |
December 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Accounts payable | $ | 81 | $ | 97 | |||
Capacity expansion project costs | 185 | 416 | |||||
Accrued natural gas costs | 111 | 70 | |||||
Payroll and employee-related costs | 46 | 49 | |||||
Accrued interest | 53 | 60 | |||||
Other | 162 | 226 | |||||
Accounts payable and accrued expenses | $ | 638 | $ | 918 |
December 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Benefit plans and deferred compensation | $ | 393 | $ | 343 | |||
Tax-related liabilities | 103 | 118 | |||||
Unrealized losses on derivatives | 6 | 81 | |||||
Unrealized loss on embedded derivative | 21 | — | |||||
Capacity expansion project costs | — | 55 | |||||
Environmental and related costs | 8 | 7 | |||||
Other | 14 | 24 | |||||
Other liabilities | $ | 545 | $ | 628 |
Year ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | |||||||||||||||||
CFN | TNCLP | Total | TNCLP | TNCLP | |||||||||||||||
(in millions) | |||||||||||||||||||
Noncontrolling interests: | |||||||||||||||||||
Beginning balance | $ | — | $ | 352 | $ | 352 | $ | 363 | $ | 362 | |||||||||
Issuance of noncontrolling interest in CFN | 2,792 | — | 2,792 | — | — | ||||||||||||||
Earnings attributable to noncontrolling interests | 93 | 26 | 119 | 34 | 47 | ||||||||||||||
Declaration of distributions payable | (79 | ) | (40 | ) | (119 | ) | (45 | ) | (46 | ) | |||||||||
Ending balance | $ | 2,806 | $ | 338 | $ | 3,144 | $ | 352 | $ | 363 | |||||||||
Distributions payable to noncontrolling interests: | |||||||||||||||||||
Beginning balance | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Declaration of distributions payable | 79 | 40 | 119 | 45 | 46 | ||||||||||||||
Distributions to noncontrolling interests | (79 | ) | (40 | ) | (119 | ) | (45 | ) | (46 | ) | |||||||||
Ending balance | $ | — | $ | — | $ | — | $ | — | $ | — |
2014 Program | 2012 Program | ||||||||||||
Shares | Amounts | Shares | Amounts | ||||||||||
(in millions) | |||||||||||||
Shares repurchased in 2013 | — | $ | — | 36.7 | $ | 1,449 | |||||||
Shares repurchased in 2014: | |||||||||||||
First quarter | — | $ | — | 16.0 | $ | 794 | |||||||
Second quarter | — | — | 15.4 | 757 | |||||||||
Third quarter | — | — | — | — | |||||||||
Fourth quarter | 7.0 | 373 | — | — | |||||||||
Total shares repurchased in 2014 | 7.0 | 373 | 31.4 | 1,551 | |||||||||
Shares repurchased as of December 31, 2014 | 7.0 | $ | 373 | 68.1 | $ | 3,000 | |||||||
Shares repurchased in 2015: | |||||||||||||
First quarter | 4.1 | $ | 237 | ||||||||||
Second quarter | 4.5 | 268 | |||||||||||
Third quarter | 0.3 | 22 | |||||||||||
Fourth quarter | — | — | |||||||||||
Total shares repurchased in 2015 | 8.9 | 527 | |||||||||||
Shares repurchased as of December 31, 2015 | 15.9 | $ | 900 |
Year ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Beginning balance | 233,081,556 | 241,673,050 | 279,240,970 | |||||
Exercise of stock options | 17,600 | 274,705 | 942,560 | |||||
Issuance of restricted stock(1) | 44,941 | 40,673 | 20,875 | |||||
Forfeitures of restricted stock | (10,000 | ) | — | (65,680 | ) | |||
Purchase of treasury shares(2) | (19,928 | ) | (8,906,872 | ) | (38,465,675 | ) | ||
Ending balance | 233,114,169 | 233,081,556 | 241,673,050 |
(1) | Includes shares issued from treasury. |
(2) | Includes shares withheld to pay employee tax obligations upon the vesting of restricted stock. |
Foreign Currency Translation Adjustment | Unrealized Gain (Loss) on Securities | Unrealized Gain (Loss) on Derivatives | Defined Benefit Plans | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||
(in millions) | |||||||||||||||||||
Balance as of December 31, 2013 | $ | 31 | $ | 1 | $ | 7 | $ | (82 | ) | $ | (43 | ) | |||||||
Reclassification to earnings | — | — | (3 | ) | 33 | 30 | |||||||||||||
Loss arising during the period | — | — | — | (106 | ) | (106 | ) | ||||||||||||
Effect of exchange rate changes and deferred taxes | (72 | ) | — | 1 | 30 | (41 | ) | ||||||||||||
Balance as of December 31, 2014 | (41 | ) | 1 | 5 | (125 | ) | (160 | ) | |||||||||||
Reclassification to earnings | — | 1 | — | 6 | 7 | ||||||||||||||
Impact of CF Fertilisers UK acquisition | 9 | — | — | 38 | 47 | ||||||||||||||
Gain arising during the period | — | — | — | 24 | 24 | ||||||||||||||
Effect of exchange rate changes and deferred taxes | (166 | ) | (1 | ) | — | (1 | ) | (168 | ) | ||||||||||
Balance as of December 31, 2015 | (198 | ) | 1 | 5 | (58 | ) | (250 | ) | |||||||||||
Unrealized loss | — | (1 | ) | — | — | (1 | ) | ||||||||||||
Reclassification to earnings | — | 1 | — | 1 | 2 | ||||||||||||||
Loss arising during the period | — | — | — | (97 | ) | (97 | ) | ||||||||||||
Effect of exchange rate changes and deferred taxes | (74 | ) | — | — | 22 | (52 | ) | ||||||||||||
Balance as of December 31, 2016 | $ | (272 | ) | $ | 1 | $ | 5 | $ | (132 | ) | $ | (398 | ) |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Foreign Currency Translation Adjustment | |||||||||||
CF Fertilisers UK equity method investment remeasurement(1) | $ | — | $ | 9 | $ | — | |||||
Total before tax | — | 9 | — | ||||||||
Tax effect | — | — | — | ||||||||
Net of tax | $ | — | $ | 9 | $ | — | |||||
Unrealized Gain (Loss) on Securities | |||||||||||
Available-for-sale securities(2) | $ | 1 | $ | 1 | $ | — | |||||
Total before tax | 1 | 1 | — | ||||||||
Tax effect | — | (1 | ) | — | |||||||
Net of tax | $ | 1 | $ | — | $ | — | |||||
Unrealized Gain (Loss) on Derivatives | |||||||||||
Reclassification of de-designated hedges(3) | $ | — | $ | — | $ | (3 | ) | ||||
Total before tax | — | — | (3 | ) | |||||||
Tax effect | — | — | 1 | ||||||||
Net of tax | $ | — | $ | — | $ | (2 | ) | ||||
Defined Benefit Plans | |||||||||||
CF Fertilisers UK equity method investment remeasurement(1) | $ | — | $ | 38 | $ | — | |||||
Amortization of prior service cost (benefit)(4) | (1 | ) | (1 | ) | — | ||||||
Amortization of net loss(4) | 2 | 7 | 33 | ||||||||
Total before tax | 1 | 44 | 33 | ||||||||
Tax effect | — | (2 | ) | (12 | ) | ||||||
Net of tax | $ | 1 | $ | 42 | $ | 21 | |||||
Total reclassifications for the period | $ | 2 | $ | 51 | $ | 19 |
(1) | Represents the amount that was reclassified from AOCI into equity in earnings of non-operating affiliates—net of taxes as a result of the remeasurement to fair value of our initial 50% equity interest in CF Fertilisers UK. |
(2) | Represents the balance that was reclassified into interest income. |
(3) | Represents the portion of de-designated cash flow hedges that were reclassified into income as a result of the discontinuance of certain cash flow hedges. |
(4) | These components are included in the computation of net periodic pension cost and were reclassified from AOCI into cost of sales and selling, general and administrative expenses. |
2016 | 2015 | 2014 | |||
Weighted-average assumptions: | |||||
Expected volatility | 39% | 31% | 33% | ||
Expected term of stock options | 4.3 Years | 4.3 Years | 4.3 Years | ||
Risk-free interest rate | 1.2% | 1.5% | 1.3% | ||
Expected dividend yield | 3.3% | 1.9% | 1.6% | ||
Weighted-average grant date fair value | $8.97 | $13.99 | $12.77 |
Shares | Weighted- Average Exercise Price | |||||
Outstanding as of December 31, 2015 | 3,654,318 | $ | 41.79 | |||
Granted | 1,415,920 | 36.14 | ||||
Exercised | (17,600 | ) | 9.09 | |||
Forfeited | (93,446 | ) | 44.22 | |||
Expired | (53,920 | ) | 45.78 | |||
Outstanding as of December 31, 2016 | 4,905,272 | 40.18 | ||||
Exercisable as of December 31, 2016 | 2,765,940 | 37.25 |
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Cash received from stock option exercises | $ | — | $ | 8 | $ | 18 | |||||
Actual tax benefit realized from stock option exercises | $ | — | $ | 2 | $ | 10 | |||||
Pre-tax intrinsic value of stock options exercised | $ | — | $ | 8 | $ | 31 |
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Range of Exercise Prices | Shares | Weighted- Average Remaining Contractual Term (years) | Weighted- Average Exercise Price | Aggregate Intrinsic Value(1) (in millions) | Shares | Weighted- Average Remaining Contractual Term (years) | Weighted- Average Exercise Price | Aggregate Intrinsic Value(1) (in millions) | |||||||||||||||||
$ 8.83 - $20.00 | 570,080 | 2.9 | $ | 14.75 | $ | 9 | 570,080 | 2.9 | $ | 14.75 | $ | 9 | |||||||||||||
$20.01 - $62.25 | 4,335,192 | 7.5 | 43.53 | 1 | 2,195,860 | 6.2 | 43.09 | 1 | |||||||||||||||||
4,905,272 | 6.9 | 40.18 | $ | 10 | 2,765,940 | 5.6 | 37.25 | $ | 10 |
(1) | The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $31.48 as of December 31, 2016, which would have been received by the option holders had all option holders exercised their options as of that date. |
Restricted Stock Awards | Restricted Stock Units | Performance Share Units | ||||||||||||||||||
Shares | Weighted- Average Grant-Date Fair Value | Shares | Weighted- Average Grant-Date Fair Value | Shares | Weighted-Average Grant-Date Fair Value | |||||||||||||||
Outstanding as of December 31, 2015 | 84,918 | $ | 51.34 | 74,523 | $ | 55.87 | 47,940 | $ | 83.74 | |||||||||||
Granted | 41,645 | 27.85 | 92,050 | 36.00 | 60,030 | 40.62 | ||||||||||||||
Restrictions lapsed (vested) | (74,918 | ) | 43.79 | (3,296 | ) | 53.51 | — | — | ||||||||||||
Forfeited | (10,000 | ) | 38.02 | (4,554 | ) | 56.71 | (1,255 | ) | 84.15 | |||||||||||
Outstanding as of December 31, 2016 | 41,645 | 27.85 | 158,723 | 44.38 | 106,715 | 59.48 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Actual tax benefit realized from restricted stock vested | $ | 1 | $ | 1 | $ | 3 | |||||
Fair value of restricted stock vested | $ | 2 | $ | 5 | $ | 9 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014(1) | |||||||||
(in millions) | |||||||||||
Stock-based compensation expense | $ | 19 | $ | 17 | $ | 17 | |||||
Income tax benefit | (7 | ) | (6 | ) | (6 | ) | |||||
Stock-based compensation expense, net of income taxes | $ | 12 | $ | 11 | $ | 11 |
(1) | Includes incremental compensation expense of $2 million related to the modification of 299,950 stock options and 80,495 RSAs. |
Ammonia | Granular Urea(1) | UAN(1) | AN(1) | Other(1) | Phosphate | Consolidated | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Year ended December 31, 2016 | |||||||||||||||||||||||||||
Net sales | $ | 981 | $ | 831 | $ | 1,196 | $ | 411 | $ | 266 | $ | — | $ | 3,685 | |||||||||||||
Cost of sales | 715 | 584 | 920 | 409 | 217 | — | 2,845 | ||||||||||||||||||||
Gross margin | $ | 266 | $ | 247 | $ | 276 | $ | 2 | $ | 49 | $ | — | 840 | ||||||||||||||
Total other operating costs and expenses | 561 | ||||||||||||||||||||||||||
Equity in losses of operating affiliates | (145 | ) | |||||||||||||||||||||||||
Operating earnings | $ | 134 | |||||||||||||||||||||||||
Year ended December 31, 2015 | |||||||||||||||||||||||||||
Net sales | $ | 1,523 | $ | 788 | $ | 1,480 | $ | 294 | $ | 223 | $ | — | $ | 4,308 | |||||||||||||
Cost of sales | 884 | 469 | 955 | 291 | 162 | — | 2,761 | ||||||||||||||||||||
Gross margin | $ | 639 | $ | 319 | $ | 525 | $ | 3 | $ | 61 | $ | — | 1,547 | ||||||||||||||
Total other operating costs and expenses | 319 | ||||||||||||||||||||||||||
Equity in losses of operating affiliates | (35 | ) | |||||||||||||||||||||||||
Operating earnings | $ | 1,193 | |||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||||
Net sales | $ | 1,576 | $ | 915 | $ | 1,670 | $ | 243 | $ | 171 | $ | 168 | $ | 4,743 | |||||||||||||
Cost of sales | 983 | 517 | 998 | 189 | 120 | 158 | 2,965 | ||||||||||||||||||||
Gross margin | $ | 593 | $ | 398 | $ | 672 | $ | 54 | $ | 51 | $ | 10 | 1,778 | ||||||||||||||
Total other operating costs and expenses | 205 | ||||||||||||||||||||||||||
Gain on sale of phosphate business | 750 | ||||||||||||||||||||||||||
Equity in earnings of operating affiliates | 43 | ||||||||||||||||||||||||||
Operating earnings | $ | 2,366 |
(1) | The cost of ammonia that is upgraded into other products is transferred at cost into the upgraded product results. |
Ammonia | Granular Urea | UAN | AN | Other | Phosphate(1) | Corporate | Consolidated | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||
Year ended December 31, 2016 | $ | 96 | $ | 112 | $ | 247 | $ | 93 | $ | 46 | $ | — | $ | 84 | $ | 678 | |||||||||||||||
Year ended December 31, 2015 | $ | 95 | $ | 51 | $ | 192 | $ | 66 | $ | 35 | $ | — | $ | 41 | $ | 480 | |||||||||||||||
Year ended December 31, 2014 | $ | 69 | $ | 37 | $ | 179 | $ | 47 | $ | 20 | $ | — | $ | 41 | $ | 393 |
(1) | The assets and liabilities of our phosphate business were classified as held for sale as of December 31, 2013; therefore, no depreciation, depletion or amortization was recorded in 2014 for the related property, plant and equipment. |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Sales by geographic region (based on destination of shipments): | |||||||||||
United States | $ | 2,728 | $ | 3,485 | $ | 3,994 | |||||
Foreign: | |||||||||||
Canada | 349 | 490 | 544 | ||||||||
United Kingdom | 394 | 153 | — | ||||||||
Other foreign | 214 | 180 | 205 | ||||||||
Total foreign | 957 | 823 | 749 | ||||||||
Consolidated | $ | 3,685 | $ | 4,308 | $ | 4,743 |
December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Property, plant and equipment—net by geographic region: | |||||||||||
United States | $ | 8,444 | $ | 7,202 | $ | 4,987 | |||||
Foreign: | |||||||||||
Canada | 523 | 497 | 539 | ||||||||
United Kingdom | 685 | 840 | — | ||||||||
Total foreign | 1,208 | 1,337 | 539 | ||||||||
Consolidated | $ | 9,652 | $ | 8,539 | $ | 5,526 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Cash paid during the year for | |||||||||||
Interest—net of interest capitalized | $ | 144 | $ | 100 | $ | 141 | |||||
Income taxes—net of refunds | (110 | ) | 435 | 781 | |||||||
Supplemental disclosure of noncash investing and financing activities: | |||||||||||
Change in capitalized expenditures in accounts payable and accrued expenses | (263 | ) | 258 | 72 | |||||||
Change in capitalized expenditures in other liabilities | (55 | ) | 6 | (22 | ) | ||||||
Change in noncontrolling interests in other liabilities | 8 | — | — | ||||||||
Change in accrued share repurchases | — | (29 | ) | (11 | ) |
Operating Lease Payments | |||
(in millions) | |||
2017 | $ | 89 | |
2018 | 83 | ||
2019 | 65 | ||
2020 | 51 | ||
2021 | 41 | ||
Thereafter | 92 | ||
$ | 421 |
Three months ended, | |||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Full Year | |||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||
2016 | |||||||||||||||||||
Net sales | $ | 1,004 | $ | 1,134 | $ | 680 | $ | 867 | $ | 3,685 | |||||||||
Gross margin | 217 | 527 | 2 | 94 | 840 | ||||||||||||||
Unrealized (losses) gains on natural gas derivatives(1) | (21 | ) | 211 | (21 | ) | 91 | 260 | ||||||||||||
Net earnings (loss) attributable to common stockholders(2) | 26 | 47 | (30 | ) | (320 | ) | (277 | ) | |||||||||||
Net earnings (loss) per share attributable to common stockholders(2) | |||||||||||||||||||
Basic(3) | 0.11 | 0.20 | (0.13 | ) | (1.38 | ) | (1.19 | ) | |||||||||||
Diluted(3) | 0.11 | 0.20 | (0.13 | ) | (1.38 | ) | (1.19 | ) | |||||||||||
2015 | |||||||||||||||||||
Net sales | $ | 954 | $ | 1,311 | $ | 928 | $ | 1,115 | $ | 4,308 | |||||||||
Gross margin | 416 | 686 | 165 | 280 | 1,547 | ||||||||||||||
Unrealized gains (losses) on natural gas derivatives(1) | 28 | 19 | (126 | ) | (97 | ) | (176 | ) | |||||||||||
Net earnings attributable to common stockholders(4) | 231 | 352 | 90 | 27 | 700 | ||||||||||||||
Net earnings per share attributable to common stockholders(4) | |||||||||||||||||||
Basic(3) | 0.96 | 1.50 | 0.39 | 0.11 | 2.97 | ||||||||||||||
Diluted(3) | 0.96 | 1.49 | 0.39 | 0.11 | 2.96 |
(1) | Amounts represent pre-tax unrealized gains (losses) on natural gas derivatives, which are included in gross margin. See Note 15—Derivative Financial Instruments for additional information. |
(2) | For the three months ended September 30, 2016, net loss attributable to common stockholders includes an after-tax loss of $14 million (pre-tax loss of $22 million) resulting from recognizing the value of an embedded derivative liability to reflect our credit evaluation that is included in other operating—net, and net loss per share attributable to common stockholders, basic and diluted, include the per share impact of $0.06. See Note 9—Fair Value Measurements and Note 17—Noncontrolling Interests for additional information. |
(3) | The sum of the four quarters is not necessarily the same as the total for the year. |
(4) | For the three months ended June 30, 2015, net earnings attributable to common stockholders includes an after-tax loss of $29 million (pre-tax loss of $40 million) resulting from the sale of our interests in Keytrade that is included in equity in earnings of operating affiliates, and net earnings per share attributable to common stockholders, basic and diluted, include the per share impact of $0.12. See Note 4—Acquisitions and Divestitures and Note 8—Equity Method Investments for additional information. |
Year ended December 31, 2016 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net sales | $ | — | $ | 362 | $ | 2,932 | $ | 2,939 | $ | (2,548 | ) | $ | 3,685 | ||||||||||
Cost of sales | — | 207 | 2,806 | 2,380 | (2,548 | ) | 2,845 | ||||||||||||||||
Gross margin | — | 155 | 126 | 559 | — | 840 | |||||||||||||||||
Selling, general and administrative expenses | 4 | 9 | 105 | 56 | — | 174 | |||||||||||||||||
Transaction costs | (46 | ) | — | 223 | 2 | — | 179 | ||||||||||||||||
Other operating—net | — | 7 | 30 | 171 | — | 208 | |||||||||||||||||
Total other operating costs and expenses | (42 | ) | 16 | 358 | 229 | — | 561 | ||||||||||||||||
Equity in loss of operating affiliates | — | — | — | (145 | ) | — | (145 | ) | |||||||||||||||
Operating earnings (losses) | 42 | 139 | (232 | ) | 185 | — | 134 | ||||||||||||||||
Interest expense | — | 347 | 85 | (155 | ) | (77 | ) | 200 | |||||||||||||||
Interest income | — | (49 | ) | (8 | ) | (25 | ) | 77 | (5 | ) | |||||||||||||
Loss on debt extinguishment | — | 167 | — | — | — | 167 | |||||||||||||||||
Net loss (earnings) of wholly owned subsidiaries | 304 | 92 | (315 | ) | — | (81 | ) | — | |||||||||||||||
Other non-operating—net | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||
(Loss) earnings before income taxes and equity in losses of non-operating affiliates | (262 | ) | (418 | ) | 6 | 367 | 81 | (226 | ) | ||||||||||||||
Income tax provision (benefit) | 15 | (114 | ) | 18 | 13 | — | (68 | ) | |||||||||||||||
Net (loss) earnings | (277 | ) | (304 | ) | (12 | ) | 354 | 81 | (158 | ) | |||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | 119 | — | 119 | |||||||||||||||||
Net (loss) earnings attributable to common stockholders | $ | (277 | ) | $ | (304 | ) | $ | (12 | ) | $ | 235 | $ | 81 | $ | (277 | ) |
Year ended December 31, 2016 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net (loss) earnings | $ | (277 | ) | $ | (304 | ) | $ | (12 | ) | $ | 354 | $ | 81 | $ | (158 | ) | |||||||
Other comprehensive loss | (148 | ) | (148 | ) | (68 | ) | (134 | ) | 350 | (148 | ) | ||||||||||||
Comprehensive (loss) income | (425 | ) | (452 | ) | (80 | ) | 220 | 431 | (306 | ) | |||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | — | 119 | — | 119 | |||||||||||||||||
Comprehensive (losses) income attributable to common stockholders | $ | (425 | ) | $ | (452 | ) | $ | (80 | ) | $ | 101 | $ | 431 | $ | (425 | ) |
Year ended December 31, 2015 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net sales | $ | — | $ | 462 | $ | 4,101 | $ | 2,464 | $ | (2,719 | ) | $ | 4,308 | ||||||||||
Cost of sales | — | 361 | 3,186 | 1,933 | (2,719 | ) | 2,761 | ||||||||||||||||
Gross margin | — | 101 | 915 | 531 | — | 1,547 | |||||||||||||||||
Selling, general and administrative expenses | 4 | 8 | 120 | 38 | — | 170 | |||||||||||||||||
Transaction costs | 46 | — | 7 | 4 | — | 57 | |||||||||||||||||
Other operating—net | — | (8 | ) | 29 | 71 | — | 92 | ||||||||||||||||
Total other operating costs and expenses | 50 | — | 156 | 113 | — | 319 | |||||||||||||||||
Equity in earnings of operating affiliates | — | — | — | (35 | ) | — | (35 | ) | |||||||||||||||
Operating (loss) earnings | (50 | ) | 101 | 759 | 383 | — | 1,193 | ||||||||||||||||
Interest expense | — | 285 | 14 | (70 | ) | (96 | ) | 133 | |||||||||||||||
Interest income | — | (69 | ) | (25 | ) | (4 | ) | 96 | (2 | ) | |||||||||||||
Net earnings of wholly owned subsidiaries | (731 | ) | (802 | ) | (403 | ) | — | 1,936 | — | ||||||||||||||
Other non-operating—net | — | — | 5 | (1 | ) | — | 4 | ||||||||||||||||
Earnings before income taxes and equity in earnings of non-operating affiliates | 681 | 687 | 1,168 | 458 | (1,936 | ) | 1,058 | ||||||||||||||||
Income tax (benefit) provision | (19 | ) | (44 | ) | 385 | 74 | — | 396 | |||||||||||||||
Equity in earnings of non-operating affiliates—net of taxes | — | — | 10 | 62 | — | 72 | |||||||||||||||||
Net earnings | 700 | 731 | 793 | 446 | (1,936 | ) | 734 | ||||||||||||||||
Less: Net earnings attributable to noncontrolling interest | — | — | — | 34 | — | 34 | |||||||||||||||||
Net earnings attributable to common stockholders | $ | 700 | $ | 731 | $ | 793 | $ | 412 | $ | (1,936 | ) | $ | 700 |
Year ended December 31, 2015 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net earnings | $ | 700 | $ | 731 | $ | 793 | $ | 446 | $ | (1,936 | ) | $ | 734 | ||||||||||
Other comprehensive loss | (90 | ) | (90 | ) | (98 | ) | (96 | ) | 284 | (90 | ) | ||||||||||||
Comprehensive income | 610 | 641 | 695 | 350 | (1,652 | ) | 644 | ||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | 34 | — | 34 | |||||||||||||||||
Comprehensive income attributable to common stockholders | $ | 610 | $ | 641 | $ | 695 | $ | 316 | $ | (1,652 | ) | $ | 610 |
Year ended December 31, 2014 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net sales | $ | — | $ | 712 | $ | 4,780 | $ | 2,673 | $ | (3,422 | ) | $ | 4,743 | ||||||||||
Cost of sales | — | 528 | 3,776 | 2,083 | (3,422 | ) | 2,965 | ||||||||||||||||
Gross margin | — | 184 | 1,004 | 590 | — | 1,778 | |||||||||||||||||
Selling, general and administrative expenses | 3 | 13 | 103 | 33 | — | 152 | |||||||||||||||||
Other operating—net | — | (5 | ) | 26 | 32 | — | 53 | ||||||||||||||||
Total other operating costs and expenses | 3 | 8 | 129 | 65 | — | 205 | |||||||||||||||||
Gain on sale of phosphate business | — | 764 | (14 | ) | — | — | 750 | ||||||||||||||||
Equity in earnings of operating affiliates | — | — | — | 43 | — | 43 | |||||||||||||||||
Operating (losses) earnings | (3 | ) | 940 | 861 | 568 | — | 2,366 | ||||||||||||||||
Interest expense | — | 247 | 1 | (70 | ) | — | 178 | ||||||||||||||||
Interest income | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Net earnings of wholly owned subsidiaries | (1,392 | ) | (969 | ) | (579 | ) | — | 2,940 | — | ||||||||||||||
Other non-operating—net | — | — | 2 | — | — | 2 | |||||||||||||||||
Earnings before income taxes and equity in earnings of non-operating affiliates | 1,389 | 1,662 | 1,437 | 639 | (2,940 | ) | 2,187 | ||||||||||||||||
Income tax (benefit) provision | (1 | ) | 270 | 515 | (11 | ) | — | 773 | |||||||||||||||
Equity in earnings of non-operating affiliates—net of taxes | — | — | — | 23 | — | 23 | |||||||||||||||||
Net earnings | 1,390 | 1,392 | 922 | 673 | (2,940 | ) | 1,437 | ||||||||||||||||
Less: Net earnings attributable to noncontrolling interest | — | — | — | 47 | — | 47 | |||||||||||||||||
Net earnings attributable to common stockholders | $ | 1,390 | $ | 1,392 | $ | 922 | $ | 626 | $ | (2,940 | ) | $ | 1,390 |
Year ended December 31, 2014 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net earnings | $ | 1,390 | $ | 1,392 | $ | 922 | $ | 673 | $ | (2,940 | ) | $ | 1,437 | ||||||||||
Other comprehensive loss | (117 | ) | (117 | ) | (98 | ) | (110 | ) | 325 | (117 | ) | ||||||||||||
Comprehensive income | 1,273 | 1,275 | 824 | 563 | (2,615 | ) | 1,320 | ||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | 47 | — | 47 | |||||||||||||||||
Comprehensive income attributable to common stockholders | $ | 1,273 | $ | 1,275 | $ | 824 | $ | 516 | $ | (2,615 | ) | $ | 1,273 |
December 31, 2016 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations and Reclassifications | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 36 | $ | 878 | $ | 250 | $ | — | $ | 1,164 | |||||||||||
Restricted cash | — | — | — | 5 | — | 5 | |||||||||||||||||
Accounts and notes receivable—net | 20 | 1,259 | 1,418 | 495 | (2,956 | ) | 236 | ||||||||||||||||
Inventories | — | 164 | 175 | — | 339 | ||||||||||||||||||
Prepaid income taxes | — | — | 839 | 2 | — | 841 | |||||||||||||||||
Other current assets | — | — | 59 | 11 | — | 70 | |||||||||||||||||
Total current assets | 20 | 1,295 | 3,358 | 938 | (2,956 | ) | 2,655 | ||||||||||||||||
Property, plant and equipment—net | — | — | 131 | 9,521 | — | 9,652 | |||||||||||||||||
Investments in affiliates | 3,711 | 9,370 | 6,019 | 139 | (19,100 | ) | 139 | ||||||||||||||||
Due from affiliates | 571 | — | — | — | (571 | ) | — | ||||||||||||||||
Goodwill | — | — | 2,064 | 281 | — | 2,345 | |||||||||||||||||
Other assets | — | 85 | 101 | 385 | (231 | ) | 340 | ||||||||||||||||
Total assets | $ | 4,302 | $ | 10,750 | $ | 11,673 | $ | 11,264 | $ | (22,858 | ) | $ | 15,131 | ||||||||||
Liabilities and Equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts and notes payable and accrued expenses | $ | 954 | $ | 418 | $ | 1,505 | $ | 717 | $ | (2,956 | ) | $ | 638 | ||||||||||
Income taxes payable | — | — | — | 1 | — | 1 | |||||||||||||||||
Customer advances | — | — | 42 | — | — | 42 | |||||||||||||||||
Other current liabilities | — | — | 5 | — | — | 5 | |||||||||||||||||
Total current liabilities | 954 | 418 | 1,552 | 718 | (2,956 | ) | 686 | ||||||||||||||||
Long-term debt | — | 5,903 | 39 | 67 | (231 | ) | 5,778 | ||||||||||||||||
Deferred income taxes | — | 90 | 1,374 | 166 | — | 1,630 | |||||||||||||||||
Due to affiliates | — | 571 | — | — | (571 | ) | — | ||||||||||||||||
Other liabilities | — | 59 | 270 | 216 | — | 545 | |||||||||||||||||
Equity: | |||||||||||||||||||||||
Stockholders' equity: | |||||||||||||||||||||||
Preferred stock | — | — | — | — | — | — | |||||||||||||||||
Common stock | 2 | — | — | 4,383 | (4,383 | ) | 2 | ||||||||||||||||
Paid-in capital | 1,380 | (13 | ) | 9,045 | 2,246 | (11,278 | ) | 1,380 | |||||||||||||||
Retained earnings | 2,365 | 4,120 | (329 | ) | 668 | (4,459 | ) | 2,365 | |||||||||||||||
Treasury stock | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||
Accumulated other comprehensive loss | (398 | ) | (398 | ) | (271 | ) | (351 | ) | 1,020 | (398 | ) | ||||||||||||
Total stockholders' equity | 3,348 | 3,709 | 8,445 | 6,946 | (19,100 | ) | 3,348 | ||||||||||||||||
Noncontrolling interests | — | — | (7 | ) | 3,151 | — | 3,144 | ||||||||||||||||
Total equity | 3,348 | 3,709 | 8,438 | 10,097 | (19,100 | ) | 6,492 | ||||||||||||||||
Total liabilities and equity | $ | 4,302 | $ | 10,750 | $ | 11,673 | $ | 11,264 | $ | (22,858 | ) | $ | 15,131 |
December 31, 2015 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations and Reclassifications | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | — | $ | 121 | $ | 164 | $ | — | $ | 286 | |||||||||||
Restricted cash | — | — | — | 23 | — | 23 | |||||||||||||||||
Accounts and notes receivable—net | 1 | 2,992 | 2,674 | 782 | (6,182 | ) | 267 | ||||||||||||||||
Inventories | — | — | 153 | 168 | — | 321 | |||||||||||||||||
Prepaid income taxes | — | — | 181 | 4 | — | 185 | |||||||||||||||||
Other current assets | — | 24 | 15 | 6 | — | 45 | |||||||||||||||||
Total current assets | 2 | 3,016 | 3,144 | 1,147 | (6,182 | ) | 1,127 | ||||||||||||||||
Property, plant and equipment—net | — | — | 133 | 8,406 | — | 8,539 | |||||||||||||||||
Investments in affiliates | 4,303 | 8,148 | 5,718 | 298 | (18,169 | ) | 298 | ||||||||||||||||
Due from affiliates | 571 | — | — | 1,643 | (2,214 | ) | — | ||||||||||||||||
Goodwill | — | — | 2,064 | 326 | — | 2,390 | |||||||||||||||||
Other assets | — | 19 | 73 | 237 | — | 329 | |||||||||||||||||
Total assets | $ | 4,876 | $ | 11,183 | $ | 11,132 | $ | 12,057 | $ | (26,565 | ) | $ | 12,683 | ||||||||||
Liabilities and Equity | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts and notes payable and accrued expenses | $ | 841 | $ | 648 | $ | 1,139 | $ | 4,472 | $ | (6,182 | ) | $ | 918 | ||||||||||
Income taxes payable | — | — | 1 | 4 | — | 5 | |||||||||||||||||
Customer advances | — | — | 162 | — | — | 162 | |||||||||||||||||
Other current liabilities | — | — | 114 | 16 | — | 130 | |||||||||||||||||
Total current liabilities | 841 | 648 | 1,416 | 4,492 | (6,182 | ) | 1,215 | ||||||||||||||||
Long-term debt | — | 5,537 | — | — | — | 5,537 | |||||||||||||||||
Deferred income taxes | — | 52 | 672 | 192 | — | 916 | |||||||||||||||||
Due to affiliates | — | 573 | 1,641 | — | (2,214 | ) | — | ||||||||||||||||
Other liabilities | — | 71 | 311 | 246 | — | 628 | |||||||||||||||||
Equity: | |||||||||||||||||||||||
Stockholders' equity: | |||||||||||||||||||||||
Preferred stock | — | — | — | 16 | (16 | ) | — | ||||||||||||||||
Common stock | 2 | — | — | 5 | (5 | ) | 2 | ||||||||||||||||
Paid-in capital | 1,378 | (13 | ) | 7,474 | 5,741 | (13,202 | ) | 1,378 | |||||||||||||||
Retained earnings | 3,058 | 4,565 | (179 | ) | 1,230 | (5,616 | ) | 3,058 | |||||||||||||||
Treasury stock | (153 | ) | — | — | — | — | (153 | ) | |||||||||||||||
Accumulated other comprehensive loss | (250 | ) | (250 | ) | (203 | ) | (217 | ) | 670 | (250 | ) | ||||||||||||
Total stockholders' equity | 4,035 | 4,302 | 7,092 | 6,775 | (18,169 | ) | 4,035 | ||||||||||||||||
Noncontrolling interest | — | — | — | 352 | — | 352 | |||||||||||||||||
Total equity | 4,035 | 4,302 | 7,092 | 7,127 | (18,169 | ) | 4,387 | ||||||||||||||||
Total liabilities and equity | $ | 4,876 | $ | 11,183 | $ | 11,132 | $ | 12,057 | $ | (26,565 | ) | $ | 12,683 |
Year ended December 31, 2016 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating Activities: | |||||||||||||||||||||||
Net (loss) earnings | $ | (277 | ) | $ | (304 | ) | $ | (12 | ) | $ | 354 | $ | 81 | $ | (158 | ) | |||||||
Adjustments to reconcile net (loss) earnings to net cash provided by (used in) operating activities: | |||||||||||||||||||||||
Depreciation and amortization | — | 21 | 55 | 602 | — | 678 | |||||||||||||||||
Deferred income taxes | — | — | 740 | (1 | ) | — | 739 | ||||||||||||||||
Stock-based compensation expense | 18 | — | — | 1 | — | 19 | |||||||||||||||||
Unrealized net gain on natural gas and foreign currency derivatives | — | — | (225 | ) | (35 | ) | — | (260 | ) | ||||||||||||||
Loss on embedded derivative | — | — | 23 | — | — | 23 | |||||||||||||||||
Impairment of equity method investment in PLNL | — | — | — | 134 | — | 134 | |||||||||||||||||
Loss on debt extinguishment | — | 167 | — | — | — | 167 | |||||||||||||||||
Loss on disposal of property, plant and equipment | — | — | 2 | 8 | — | 10 | |||||||||||||||||
Undistributed earnings of affiliates—net | 304 | 92 | (315 | ) | 9 | (81 | ) | 9 | |||||||||||||||
Changes in: | |||||||||||||||||||||||
Intercompany AR/AP—net | (4 | ) | (10 | ) | 308 | (294 | ) | — | — | ||||||||||||||
Accounts receivable—net | — | 44 | (11 | ) | (15 | ) | — | 18 | |||||||||||||||
Inventories | — | — | (8 | ) | 1 | — | (7 | ) | |||||||||||||||
Accrued and prepaid income taxes | — | — | (682 | ) | 6 | — | (676 | ) | |||||||||||||||
Accounts and notes payable and accrued expenses | (8 | ) | (63 | ) | (12 | ) | 65 | — | (18 | ) | |||||||||||||
Customer advances | — | — | (120 | ) | — | — | (120 | ) | |||||||||||||||
Other—net | — | (6 | ) | (17 | ) | 82 | — | 59 | |||||||||||||||
Net cash provided by (used in) operating activities | 33 | (59 | ) | (274 | ) | 917 | — | 617 | |||||||||||||||
Investing Activities: | |||||||||||||||||||||||
Additions to property, plant and equipment | — | — | (25 | ) | (2,186 | ) | — | (2,211 | ) | ||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | 4 | 10 | — | 14 | |||||||||||||||||
Withdrawals from restricted cash funds | — | — | — | 18 | — | 18 | |||||||||||||||||
Investments in unconsolidated affiliates | — | (44 | ) | (649 | ) | — | 693 | — | |||||||||||||||
Other—net | — | 6 | — | (4 | ) | — | 2 | ||||||||||||||||
Net cash used in investing activities | — | (38 | ) | (670 | ) | (2,162 | ) | 693 | (2,177 | ) | |||||||||||||
Financing Activities: | |||||||||||||||||||||||
Long-term debt—net | — | 125 | — | (125 | ) | — | — | ||||||||||||||||
Proceeds from long-term borrowings | — | 1,244 | — | — | — | 1,244 | |||||||||||||||||
Payments of long-term borrowings | — | (1,170 | ) | — | — | — | (1,170 | ) | |||||||||||||||
Short-term debt—net | 106 | (40 | ) | (371 | ) | 305 | — | — | |||||||||||||||
Proceeds from short-term borrowings | — | 150 | — | — | — | 150 | |||||||||||||||||
Payments of short-term borrowings | — | (150 | ) | — | — | — | (150 | ) | |||||||||||||||
Payment to CHS related to credit provision | — | — | (5 | ) | — | — | (5 | ) | |||||||||||||||
Financing fees | — | (31 | ) | — | — | — | (31 | ) | |||||||||||||||
Dividends paid on common stock | (280 | ) | (140 | ) | (140 | ) | (222 | ) | 502 | (280 | ) | ||||||||||||
Issuance of noncontrolling interest in CFN | — | — | — | 2,800 | — | 2,800 | |||||||||||||||||
Distributions to noncontrolling interests | — | — | — | (119 | ) | — | (119 | ) | |||||||||||||||
Distribution received for CHS strategic venture | — | — | 2,000 | (2,000 | ) | — | — | ||||||||||||||||
Dividends to/from affiliates | 140 | 145 | 217 | — | (502 | ) | — | ||||||||||||||||
Other—net | — | — | — | 693 | (693 | ) | — | ||||||||||||||||
Net cash (used in) provided by financing activities | (34 | ) | 133 | 1,701 | 1,332 | (693 | ) | 2,439 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
(Decrease) increase in cash and cash equivalents | (1 | ) | 36 | 757 | 86 | — | 878 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 1 | — | 121 | 164 | — | 286 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 36 | $ | 878 | $ | 250 | $ | — | $ | 1,164 |
Year ended December 31, 2015 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating Activities: | |||||||||||||||||||||||
Net earnings | $ | 700 | $ | 731 | $ | 793 | $ | 446 | $ | (1,936 | ) | $ | 734 | ||||||||||
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | — | 14 | 19 | 447 | — | 480 | |||||||||||||||||
Deferred income taxes | — | 17 | 75 | (14 | ) | — | 78 | ||||||||||||||||
Stock-based compensation expense | 16 | — | — | 1 | — | 17 | |||||||||||||||||
Unrealized net loss on natural gas and foreign currency derivatives | — | — | 139 | 24 | — | 163 | |||||||||||||||||
Gain on remeasurement of CF Fertilisers UK investment | — | — | — | (94 | ) | — | (94 | ) | |||||||||||||||
Impairment of equity method investment in PLNL | — | — | — | 62 | — | 62 | |||||||||||||||||
Loss on sale of equity method investments | — | — | — | 43 | — | 43 | |||||||||||||||||
Loss on disposal of property, plant and equipment | — | — | — | 21 | — | 21 | |||||||||||||||||
Undistributed earnings of affiliates—net | (732 | ) | (802 | ) | (402 | ) | (3 | ) | 1,936 | (3 | ) | ||||||||||||
Due to/from affiliates—net | 2 | 1 | (135 | ) | 132 | — | — | ||||||||||||||||
Changes in: | |||||||||||||||||||||||
Intercompany AR/AP—net | (1 | ) | (104 | ) | 96 | 9 | — | — | |||||||||||||||
Accounts receivable—net | — | (45 | ) | 50 | (9 | ) | — | (4 | ) | ||||||||||||||
Inventories | — | — | (38 | ) | (33 | ) | — | (71 | ) | ||||||||||||||
Accrued and prepaid income taxes | 2 | (11 | ) | (105 | ) | (34 | ) | — | (148 | ) | |||||||||||||
Accounts and notes payable and accrued expenses | 9 | 61 | 14 | (42 | ) | — | 42 | ||||||||||||||||
Customer advances | — | — | (164 | ) | — | — | (164 | ) | |||||||||||||||
Other—net | — | 31 | 54 | (34 | ) | — | 51 | ||||||||||||||||
Net cash (used in) provided by operating activities | (4 | ) | (107 | ) | 396 | 922 | — | 1,207 | |||||||||||||||
Investing Activities: | |||||||||||||||||||||||
Additions to property, plant and equipment | — | — | (26 | ) | (2,443 | ) | — | (2,469 | ) | ||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | — | 12 | — | 12 | |||||||||||||||||
Proceeds from sale of equity method investment | — | — | — | 13 | — | 13 | |||||||||||||||||
Purchase of CF Fertilisers UK, net of cash acquired | — | — | — | (552 | ) | — | (552 | ) | |||||||||||||||
Withdrawals from restricted cash funds | — | — | — | 63 | — | 63 | |||||||||||||||||
Other—net | — | (82 | ) | (44 | ) | 1 | 82 | (43 | ) | ||||||||||||||
Net cash used in investing activities | — | (82 | ) | (70 | ) | (2,906 | ) | 82 | (2,976 | ) | |||||||||||||
Financing Activities: | |||||||||||||||||||||||
Proceeds from long-term borrowings | — | 1,000 | — | — | — | 1,000 | |||||||||||||||||
Short-term debt—net | 554 | (870 | ) | (1,431 | ) | 1,747 | — | — | |||||||||||||||
Financing fees | — | (47 | ) | — | — | — | (47 | ) | |||||||||||||||
Purchases of treasury stock | (556 | ) | — | — | — | — | (556 | ) | |||||||||||||||
Dividends paid on common stock | (282 | ) | (282 | ) | (282 | ) | (268 | ) | 832 | (282 | ) | ||||||||||||
Distributions to noncontrolling interest | — | — | — | (45 | ) | — | (45 | ) | |||||||||||||||
Issuances of common stock under employee stock plans | 8 | — | — | — | — | 8 | |||||||||||||||||
Shares withheld for taxes | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||
Dividends to/from affiliates | 282 | 282 | 268 | — | (832 | ) | — | ||||||||||||||||
Other—net | — | — | — | 82 | (82 | ) | — | ||||||||||||||||
Net cash provided by (used in) financing activities | 5 | 83 | (1,445 | ) | 1,516 | (82 | ) | 77 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (19 | ) | — | (19 | ) | |||||||||||||||
Increase (decrease) in cash and cash equivalents | 1 | (106 | ) | (1,119 | ) | (487 | ) | — | (1,711 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | 106 | 1,240 | 651 | — | 1,997 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 1 | $ | — | $ | 121 | $ | 164 | $ | — | $ | 286 |
Year ended December 31, 2014 | |||||||||||||||||||||||
Parent | CF Industries | Subsidiary Guarantors | Non- Guarantors | Eliminations | Consolidated | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating Activities: | |||||||||||||||||||||||
Net earnings | $ | 1,390 | $ | 1,392 | $ | 922 | $ | 673 | $ | (2,940 | ) | $ | 1,437 | ||||||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||||||||||||||||
Depreciation, depletion and amortization | — | 7 | 16 | 370 | — | 393 | |||||||||||||||||
Deferred income taxes | — | 136 | (69 | ) | (49 | ) | — | 18 | |||||||||||||||
Stock-based compensation expense | 17 | — | — | — | — | 17 | |||||||||||||||||
Unrealized loss on derivatives | — | — | 103 | 16 | — | 119 | |||||||||||||||||
Gain on sale of phosphate business | — | (764 | ) | 14 | — | — | (750 | ) | |||||||||||||||
Loss on disposal of property, plant and equipment | — | — | — | 4 | — | 4 | |||||||||||||||||
Undistributed (earnings) loss of affiliates—net | (1,392 | ) | (969 | ) | (579 | ) | (12 | ) | 2,940 | (12 | ) | ||||||||||||
Due to / from affiliates—net | 9 | 1 | (15 | ) | 5 | — | — | ||||||||||||||||
Changes in: | |||||||||||||||||||||||
Intercompany AR/AP—net | — | 14 | (143 | ) | 129 | — | — | ||||||||||||||||
Accounts receivable—net | — | 1 | (48 | ) | 86 | — | 39 | ||||||||||||||||
Inventories | — | 4 | 64 | (4 | ) | — | 64 | ||||||||||||||||
Accrued and prepaid income taxes | (1 | ) | (18 | ) | (64 | ) | 26 | — | (57 | ) | |||||||||||||
Accounts and notes payable and accrued expenses | — | 77 | (59 | ) | (71 | ) | — | (53 | ) | ||||||||||||||
Customer advances | — | — | 205 | — | — | 205 | |||||||||||||||||
Other—net | — | 5 | 17 | (25 | ) | — | (3 | ) | |||||||||||||||
Net cash provided by (used in) operating activities | 23 | (114 | ) | 364 | 1,148 | — | 1,421 | ||||||||||||||||
Investing Activities: | |||||||||||||||||||||||
Additions to property, plant and equipment | — | (18 | ) | (24 | ) | (1,767 | ) | — | (1,809 | ) | |||||||||||||
Proceeds from sale of property, plant and equipment | — | — | — | 11 | — | 11 | |||||||||||||||||
Proceeds from sale of phosphate business | — | 911 | — | 461 | — | 1,372 | |||||||||||||||||
Deposits to restricted cash funds | — | — | — | (505 | ) | — | (505 | ) | |||||||||||||||
Withdrawals from restricted cash funds | — | — | — | 573 | — | 573 | |||||||||||||||||
Sales and maturities of short-term and auction rate securities | — | 5 | — | — | — | 5 | |||||||||||||||||
Other—net | — | — | 5 | 4 | — | 9 | |||||||||||||||||
Net cash provided by (used in) investing activities | — | 898 | (19 | ) | (1,223 | ) | — | (344 | ) | ||||||||||||||
Financing Activities: | |||||||||||||||||||||||
Proceeds from long-term borrowings | — | 1,494 | — | — | — | 1,494 | |||||||||||||||||
Short-term debt—net | 1,897 | (2,176 | ) | (395 | ) | 674 | — | — | |||||||||||||||
Financing fees | — | (16 | ) | — | — | — | (16 | ) | |||||||||||||||
Dividends paid on common stock | (256 | ) | (256 | ) | (256 | ) | (295 | ) | 807 | (256 | ) | ||||||||||||
Dividends to/from affiliates | 256 | 256 | 295 | — | (807 | ) | — | ||||||||||||||||
Distributions to/from noncontrolling interest | — | — | — | (46 | ) | — | (46 | ) | |||||||||||||||
Purchases of treasury stock | (1,935 | ) | — | — | — | — | (1,935 | ) | |||||||||||||||
Shares withheld for taxes | (3 | ) | — | — | — | — | (3 | ) | |||||||||||||||
Issuances of common stock under employee stock plans | 18 | — | — | — | — | 18 | |||||||||||||||||
Other—net | — | (1 | ) | (27 | ) | (15 | ) | — | (43 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (23 | ) | (699 | ) | (383 | ) | 318 | — | (787 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||
Increase (decrease) in cash and cash equivalents | — | 85 | (38 | ) | 239 | — | 286 | ||||||||||||||||
Cash and cash equivalents at beginning of period | — | 21 | 1,278 | 412 | — | 1,711 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 106 | $ | 1,240 | $ | 651 | $ | — | $ | 1,997 |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column) | ||||||
Equity compensation plans approved by security holders | 4,723,387 | $ | 41.06 | 11,699,635 | |||||
Equity compensation plans not approved by security holders | 181,885 | $ | 17.57 | — | |||||
Total | 4,905,272 | $ | 40.18 | 11,699,635 |
(a) | Documents filed as part of this report: |
(1 | ) | All financial statements: | |
The following financial statements are included in Part II, Item 8. Financial Statements and Supplementary Data. | |||
Financial statement schedules are omitted because they are not applicable or the required information is included in the consolidated financial statements or notes thereto. | |||
(2 | ) | Exhibits | |
A list of exhibits filed with this Annual Report on Form 10-K (or incorporated by reference to exhibits previously filed or furnished) is provided in the Exhibit Index on page 151 of this report. |
CF INDUSTRIES HOLDINGS, INC. | ||||
Date: | February 23, 2017 | By: | /s/ W. ANTHONY WILL | |
W. Anthony Will President and Chief Executive Officer |
Signature | Title(s) | Date | ||
/s/ W. ANTHONY WILL | President and Chief Executive Officer, Director (Principal Executive Officer) | February 23, 2017 | ||
W. Anthony Will | ||||
/s/ DENNIS P. KELLEHER | Senior Vice President and Chief Financial Officer (Principal Financial Officer) | February 23, 2017 | ||
Dennis P. Kelleher | ||||
/s/ RICHARD A. HOKER | Vice President and Corporate Controller (Principal Accounting Officer) | February 23, 2017 | ||
Richard A. Hoker | ||||
/s/ STEPHEN A. FURBACHER | Chairman of the Board | February 23, 2017 | ||
Stephen A. Furbacher | ||||
/s/ ROBERT C. ARZBAECHER | Director | February 23, 2017 | ||
Robert C. Arzbaecher | ||||
/s/ WILLIAM DAVISSON | Director | February 23, 2017 | ||
William Davisson | ||||
/s/ STEPHEN J. HAGGE | Director | February 23, 2017 | ||
Stephen J. Hagge | ||||
/s/ JOHN D. JOHNSON | Director | February 23, 2017 | ||
John D. Johnson | ||||
/s/ ROBERT G. KUHBACH | Director | February 23, 2017 | ||
Robert G. Kuhbach | ||||
/s/ ANNE P. NOONAN | Director | February 23, 2017 | ||
Anne P. Noonan | ||||
/s/ EDWARD A SCHMITT | Director | February 23, 2017 | ||
Edward A. Schmitt | ||||
/s/ THERESA E. WAGLER | Director | February 23, 2017 | ||
Theresa E. Wagler |
EXHIBIT NO. | DESCRIPTION | |
2.1 | Agreement and Plan of Merger, dated as of July 21, 2005, by and among CF Industries Holdings, Inc., CF Merger Corp. and CF Industries, Inc. (incorporated by reference to Exhibit 2.1 to Amendment No. 3 to CF Industries Holdings, Inc.'s Registration Statement on Form S-1 filed with the SEC on July 26, 2005, File No. 333-124949) | |
2.2 | Agreement and Plan of Merger, dated as of March 12, 2010, by and among CF Industries Holdings, Inc., Composite Merger Corporation and Terra Industries Inc. (incorporated by reference to Exhibit 2.1 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on March 12, 2010, File No. 001-32597) | |
2.3 | Purchase and Sale Agreement, dated August 2, 2012, between CF Industries Holdings, Inc. and Glencore International plc (incorporated by reference to Exhibit 2.1 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on August 6, 2012, File No. 001-32597) | |
2.4 | Asset Purchase Agreement, dated October 28, 2013, among CF Industries Holdings, Inc., CF Industries, Inc. and The Mosaic Company (incorporated by reference to Exhibit 2.1 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on November 1, 2013, File No. 001-32597) | |
2.5 | Combination Agreement, dated August 6, 2015, by and among CF Industries Holdings, Inc., Darwin Holdings Limited, Beagle Merger Company LLC and OCI N.V. (incorporated by reference to Exhibit 2.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on August 12, 2015, File No. 001-32597) | |
2.6 | Amendment No. 1 to the Combination Agreement, dated November 6, 2015, by and among CF Industries Holdings, Inc., Darwin Holdings Limited, Beagle Merger Company LLC and OCI N.V. (incorporated by reference to Exhibit 2.2 to CF B.V.’s Registration Statement on Form S-4 filed with the SEC on November 6, 2015, File No. 333-207847) | |
2.7 | Second Amendment to the Combination Agreement, dated December 20, 2015, by and among CF Industries Holdings, Inc., Darwin Holdings Limited, Beagle Merger Company LLC, OCI N.V., CF B.V. and Finch Merger Company LLC (incorporated by reference to Exhibit 2.1 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on December 23, 2015, File No. 001-32597) | |
2.8 | Termination Agreement, dated as of May 22, 2016, by and among CF Industries Holdings, Inc., OCI N.V. and certain other parties named therein (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on May 23, 2016, File No. 001-32597) | |
2.9 | Second Amended and Restated Limited Liability Company Agreement of CF Industries Nitrogen, LLC, dated as of December 18, 2015, by and between CF Industries Sales, LLC and CHS Inc. (incorporated by reference to Exhibit 2.1 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on December 21, 2015, File No. 001-32597)* | |
3.1 | Second Amended and Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.2 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on September 7, 2016, File No. 001-32597) | |
3.2 | Fourth Amended and Restated Bylaws of CF Industries Holdings, Inc., effective October 14, 2015 (incorporated by reference to Exhibit 3.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on October 16, 2015, File No. 001-32597) | |
4.1 | Specimen common stock certificate (incorporated by reference to Exhibit 4.2 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on September 7, 2016, File No. 001-32597) | |
4.2 | Tax Benefits Preservation Plan, dated as of September 6, 2016, between CF Industries Holdings, Inc. and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 3.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on September 7, 2016, File No. 001-32597) | |
4.3 | Indenture, dated as of April 23, 2010, among CF Industries, Inc., CF Industries Holdings, Inc. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to CF Industries Holding, Inc.'s Current Report on Form 8-K filed with the SEC on April 27, 2010, File No. 001-32597) | |
4.4 | First Supplemental Indenture, dated as of April 23, 2010, among CF Industries, Inc., CF Industries Holdings, Inc. and the other guarantors named therein and Wells Fargo Bank, National Association, as trustee, relating to CF Industries, Inc.'s 6.875% Senior Notes due 2018 (includes form of note) (the "2018 Notes Supplement") (incorporated by reference to Exhibit 4.2 to CF Industries Holding, Inc.'s Current Report on Form 8-K filed with the SEC on April 27, 2010, File No. 001-32597) |
EXHIBIT NO. | DESCRIPTION | |
4.5 | First Supplement, dated as of November 21, 2016, relating to the 2018 Notes Supplement | |
4.6 | Second Supplemental Indenture, dated as of April 23, 2010, among CF Industries, Inc., CF Industries Holdings, Inc. and the other guarantors named therein and Wells Fargo Bank, National Association, as trustee, relating to CF Industries, Inc.'s 7.125% Senior Notes due 2020 (includes form of note) (the "2020 Notes Supplement") (incorporated by reference to Exhibit 4.3 to CF Industries Holding, Inc.'s Current Report on Form 8-K filed with the SEC on April 27, 2010, File No. 001-32597) | |
4.7 | First Supplement, dated as of November 21, 2016, relating to the 2020 Notes Supplement | |
4.8 | Indenture, dated as of May 23, 2013, among CF Industries, Inc., CF Industries Holdings, Inc. and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to CF Industries Holding, Inc.'s Current Report on Form 8-K filed with the SEC on May 23, 2013, File No. 001-32597) | |
4.9 | First Supplemental Indenture, dated as of May 23, 2013, among CF Industries, Inc., CF Industries Holdings, Inc. and Wells Fargo Bank, National Association, as trustee, relating to CF Industries, Inc.'s 3.450% Senior Notes due 2023 (includes form of note) (the "2023 Notes Supplement") (incorporated by reference to Exhibit 4.2 to CF Industries Holding, Inc.'s Current Report on Form 8-K filed with the SEC on May 23, 2013, File No. 001-32597) | |
4.10 | First Supplement, dated as of November 21, 2016, relating to the 2023 Notes Supplement | |
4.11 | Second Supplemental Indenture, dated as of May 23, 2013, among CF Industries, Inc., CF Industries Holdings, Inc. and Wells Fargo Bank, National Association, as trustee, relating to CF Industries, Inc.'s 4.950% Senior Notes due 2043 (includes form of note) (the "2043 Notes Supplement") (incorporated by reference to Exhibit 4.3 to CF Industries Holding, Inc.'s Current Report on Form 8-K filed with the SEC on May 23, 2013, File No. 001-32597) | |
4.12 | First Supplement, dated as of November 21, 2016, relating to the 2043 Notes Supplement | |
4.13 | Third Supplemental Indenture, dated as of March 11, 2014, among CF Industries, Inc., CF Industries Holdings, Inc. and Wells Fargo Bank, National Association, as trustee, relating to CF Industries, Inc.'s 5.150% Senior Notes due 2034 (includes form of note) (the "2034 Notes Supplement") (incorporated by reference to Exhibit 4.2 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on March 11, 2014, File No. 001-32597) | |
4.14 | First Supplement, dated as of November 21, 2016, relating to the 2034 Notes Supplement | |
4.15 | Fourth Supplemental Indenture, dated as of March 11, 2014, among CF Industries, Inc., CF Industries Holdings, Inc. and Wells Fargo Bank, National Association, as trustee, relating to CF Industries, Inc.'s 5.375% Senior Notes due 2044 (includes form of note) (the “2044 Notes Supplement”) (incorporated by reference to Exhibit 4.3 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on March 11, 2014, File No. 001-32597) | |
4.16 | First Supplement, dated as of November 21, 2016, relating to the 2044 Notes Supplement | |
4.17 | Indenture, dated as of November 21, 2016, among CF Industries Holdings, Inc., CF Industries, Inc., the Subsidiary Guarantors (as defined therein) party thereto and Wells Fargo Bank, National Association, as trustee and collateral agent, relating to CF Industries, Inc.’s 3.400% Senior Secured Notes due 2021 (includes form of note) (incorporated by reference to Exhibit 4.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on November 22, 2016, File No. 001-32597) | |
4.18 | Indenture, dated as of November 21, 2016, among CF Industries Holdings, Inc., CF Industries, Inc., the Subsidiary Guarantors (as defined therein) party thereto and Wells Fargo Bank, National Association, as trustee and collateral agent, relating to CF Industries, Inc.’s 4.500% Senior Secured Notes due 2026 (includes form of note) (incorporated by reference to Exhibit 4.2 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on November 22, 2016, File No. 001-32597) | |
4.19 | Pledge and Security Agreement, dated as of November 21, 2016, among CF Industries Holdings, Inc., CF Industries, Inc., the other Guarantors (as defined therein) party thereto and Wells Fargo Bank, National Association, as collateral agent under the indenture relating to CF Industries, Inc.’s 3.400% Senior Secured Notes due 2021 (incorporated by reference to Exhibit 4.3 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on November 22, 2016, File No. 001-32597) | |
EXHIBIT NO. | DESCRIPTION | |
4.20 | Pledge and Security Agreement, dated as of November 21, 2016, among CF Industries Holdings, Inc., CF Industries, Inc., the Subsidiary Guarantors (as defined therein) party thereto and Wells Fargo Bank, National Association, as collateral agent under the indenture relating to CF Industries, Inc.’s 4.500% Senior Secured Notes due 2026 (incorporated by reference to Exhibit 4.4 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on November 22, 2016, File No. 001-32597) | |
4.21 | First Lien/First Lien Intercreditor Agreement, dated as of November 21, 2016, among Morgan Stanley Senior Funding, Inc., as authorized representative of the Credit Agreement Secured Parties, Wells Fargo Bank, National Association, as collateral agent in connection with CF Industries, Inc.’s 3.400% Senior Secured Notes due 2021 and 4.500% Senior Secured Notes due 2026 and each additional Authorized Representative from time to time party thereto for the Other First-Priority Secured Parties of the Series with respect to which it is acting in such capacity (incorporated by reference to Exhibit 4.5 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on November 22, 2016, File No. 001-32597) | |
4.22 | Note Purchase Agreement, dated September 24, 2015, among CF Industries Holdings, Inc., CF Industries, Inc. and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on September 30, 2015, File No. 001-32597) | |
4.23 | First Amendment, dated as of December 20, 2015, to the Note Purchase Agreement dated September 24, 2015, among CF Industries Holdings, Inc., CF Industries, Inc. and the noteholders party thereto (incorporated by reference to Exhibit 4.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on December 21, 2015, File No. 001-32597) | |
4.24 | Second Amendment, dated as of September 7, 2016, to the Note Purchase Agreement, dated as of September 24, 2015, among CF Industries Holdings, Inc., CF Industries, Inc. and the noteholders party thereto (incorporated by reference to Exhibit 4.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on September 9, 2016, File No. 001-32597) | |
10.1 | Change in Control Severance Agreement, effective as of April 29, 2005, and amended and restated as of July 24, 2007, by and among CF Industries, Inc., CF Industries Holdings, Inc. and Douglas C. Barnard (incorporated by reference to Exhibit 10.3 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on November 5, 2007, File No. 001-32597)** | |
10.2 | Change in Control Severance Agreement, effective as of September 1, 2009, amended as of October 20, 2010, and amended further and restated as of February 17, 2014, by and between CF Industries Holdings, Inc. and Christopher D. Bohn (incorporated by reference to Exhibit 10.3 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 27, 2014, File No. 001-32597)** | |
10.3 | Change in Control Severance Agreement, effective as of November 21, 2008, by and between CF Industries Holdings, Inc. and Bert A. Frost (incorporated by reference to Exhibit 10.11 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 26, 2009, File No. 001-32597)** | |
10.4 | Change in Control Severance Agreement, effective as of November 19, 2007 and amended and restated as of March 6, 2009, by and between CF Industries Holdings, Inc. and Richard A. Hoker (incorporated by reference to Exhibit (e)(9) to CF Industries Holdings, Inc.'s Solicitation/Recommendation Statement on Schedule 14D-9 filed with the SEC on March 23, 2009, File No. 005-80934)** | |
10.5 | Change in Control Severance Agreement, effective as of August 22, 2011, amended as of April 27, 2012, and amended further and restated as of February 17, 2014, by and between CF Industries Holdings, Inc. and Dennis P. Kelleher (incorporated by reference to Exhibit 99.2 to CF Industries Holding, Inc.'s Current Report on Form 8-K filed with the SEC on February 20, 2014, File No. 001-32597** | |
10.6 | Change in Control Severance Agreement, effective as of August 1, 2007 and amended and restated as of March 6, 2009, by and between CF Industries Holdings, Inc. and Wendy S. Jablow Spertus (incorporated by reference to Exhibit (e)(8) to CF Industries Holdings, Inc.'s Solicitation/Recommendation Statement on Schedule 14D-9 filed with the SEC on March 23, 2009, File No. 005-80934)** | |
10.7 | Change in Control Severance Agreement, effective as of April 29, 2005 and amended and restated as of July 24, 2007, by and among CF Industries, Inc., CF Industries Holdings, Inc. and Philipp P. Koch (incorporated by reference to Exhibit 10.5 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on November 5, 2007, File No. 001-32597)** | |
10.8 | Change in Control Severance Agreement, effective as of April 24, 2007, amended as of July 24, 2007, and amended further and restated as of February 17, 2014, by and between CF Industries Holdings, Inc. and W. Anthony Will (incorporated by reference to Exhibit 99.1 to CF Industries Holding, Inc.'s Current Report on Form 8-K filed with the SEC on February 20, 2014, File No. 001-32597)** | |
EXHIBIT NO. | DESCRIPTION | |
10.9 | Change in Control Severance Agreement, effective as of July 25, 2013, by and between CF Industries Holdings, Inc. and Adam L. Hall (incorporated by reference to Exhibit 10.10 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 27, 2014, File No. 001-32597)** | |
10.10 | Form of Amendment to Change in Control Severance Agreement (incorporated by reference to Exhibit 10.3 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on December 24, 2015, File No. 001-32597)** | |
10.11 | Form of Indemnification Agreement with Officers and Directors (incorporated by reference to Exhibit 10.10 to Amendment No. 2 to CF Industries Holdings, Inc.'s Registration Statement on Form S-1 filed with the SEC on July 20, 2005, File No. 333-124949)** | |
10.12 | CF Industries Holdings, Inc. 2005 Equity and Incentive Plan, amended as of December 13, 2007 (incorporated by reference to Exhibit 10.15 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 27, 2008, File No. 001-32597)** | |
10.13 | CF Industries Holdings, Inc. 2009 Equity and Incentive Plan (incorporated by reference to Appendix A to CF Industries Holdings, Inc.'s Definitive Proxy Statement on Schedule 14A filed with the SEC on March 16, 2009, File No. 001-32597)** | |
10.14 | Amendment, dated as of July 21, 2016, to the CF Industries Holdings, Inc. 2009 Equity and Incentive Plan (incorporated by reference to Exhibit 10.3 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on August 4, 2016, File No. 001-32597)** | |
10.15 | CF Industries Holdings, Inc. 2014 Equity and Incentive Plan (incorporated by reference to Appendix C to CF Industries Holdings, Inc.’s Definitive Proxy Statement on Schedule 14A filed with the SEC on April 3, 2014, File No. 001-32597)** | |
10.16 | Amendment, dated as of July 21, 2016, to the CF Industries Holdings, Inc. 2014 Equity and Incentive Plan (incorporated by reference to Exhibit 10.4 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on August 4, 2016, File No. 001-32597)** | |
10.17 | CF Industries Holdings, Inc. Supplemental Benefit and Deferral Plan (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on October 20, 2014, File No. 001-32597)** | |
10.18 | Form of Non-Qualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.12 to Amendment No. 3 to CF Industries Holdings, Inc.'s Registration Statement on Form S-1 filed with the SEC on July 26, 2005, File No. 333-124949)** | |
10.19 | Form of Non-Qualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.19 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 27, 2008, File No. 001-32597)** | |
10.20 | Form of Non-Qualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.6 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on August 3, 2009, File No. 001-32597)** | |
10.21 | Form of Non-Qualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.17 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 27, 2014, File No. 001-32597)** | |
10.22 | Form of Non-Qualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.2 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on November 6, 2014, File No. 001-32597)** | |
10.23 | Form of Non-Qualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.2 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on May 7, 2015, File No. 001-32597)** | |
10.24 | Form of Amendment to Non-Qualified Stock Option Award Agreements (incorporated by reference to Exhibit 10.5 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on May 7, 2015, File No. 001-32597)** | |
10.25 | Form of Non-Qualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.23 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 25, 2016, File No. 001-32597)** | |
EXHIBIT NO. | DESCRIPTION | |
10.26 | Form of Non-Qualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.6 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on August 4, 2016, File No. 001-32597)** | |
10.27 | Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.7 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on August 3, 2009, File No. 001-32597)** | |
10.28 | Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.19 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 27, 2014, File No. 001-32597)** | |
10.29 | Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on November 6, 2014, File No. 001-32597)** | |
10.30 | Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.3 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on May 7, 2015, File No. 001-32597)** | |
10.31 | Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.28 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 25, 2016, File No. 001-32597)** | |
10.32 | Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.7 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on August 4, 2016, File No. 001-32597)** | |
10.33 | Form of Performance Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.20 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 27, 2014, File No. 001-32597)** | |
10.34 | Form of Performance Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.3 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on November 6, 2014, File No. 001-32597)** | |
10.35 | Form of Performance Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.4 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on May 7, 2015, File No. 001-32597)** | |
10.36 | Form of Performance Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on August 6, 2015, File No. 001-32597)** | |
10.37 | Form of Performance Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.33 to CF Industries Holdings, Inc.'s Annual Report on Form 10-K filed with the SEC on February 25, 2016, File No. 001-32597)** | |
10.38 | Form of Performance Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.8 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on August 4, 2016, File No. 001-32597)** | |
10.39 | Form of Non-Employee Director Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.3 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on August 7, 2014, File No. 001-32597)** | |
10.40 | Form of Equity Award Amendment Letter Agreement, dated as of July 21, 2016 (incorporated by reference to Exhibit 10.5 to CF Industries Holdings, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on August 4, 2016, File No. 001-32597)** | |
10.41 | Letter Agreement between Philipp P. Koch and CF Industries Holdings, Inc. (incorporated by reference to Exhibit 10.2 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on December 24, 2015, File No. 001-32597)** | |
10.42 | Commitment Letter, dated August 6, 2015, by and among Morgan Stanley Senior Funding, Inc., Goldman Sachs Bank USA and CF Industries Holdings, Inc. (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on August 12, 2015, File No. 001-32597) | |
EXHIBIT NO. | DESCRIPTION | |
10.43 | Third Amended and Restated Revolving Credit Agreement, dated as of September 18, 2015, among CF Industries Holdings, Inc., the borrowers from time to time party thereto, the lenders from time to time party thereto, Morgan Stanley Senior Funding, Inc., as administrative agent, and Morgan Stanley Bank, N.A., Goldman Sachs Bank USA, Bank of Montreal, Royal Bank of Canada, The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Wells Fargo Bank, National Association, as issuing banks (incorporated by reference to Exhibit 10.2 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on September 23, 2015, File No. 001-32597) | |
10.44 | Amendment No. 1, dated as of December 20, 2015, to the Third Amended and Restated Revolving Credit Agreement among CF Industries Holdings, Inc., CF Industries, Inc., the lenders party thereto, the issuing banks party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent (incorporated by reference to Exhibit 10.2 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on December 21, 2015, File No. 001-32597) | |
10.45 | Amendment No. 2, dated as of July 29, 2016, to the Third Amended and Restated Revolving Credit Agreement among CF Industries Holdings, Inc., CF Industries, Inc., the lenders party thereto, the issuing banks party thereto and Morgan Stanley Senior Funding, Inc., as Administrative Agent (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on August 4, 2016, File No. 001-32597) | |
10.46 | Amendment No. 3, dated as of October 31, 2016, to the Third Amended and Restated Revolving Credit Agreement among CF Industries Holdings, Inc., CF Industries, Inc., Morgan Stanley Senior Funding, Inc., as administrative agent under the Existing Revolving Credit Agreement (as defined therein), the issuing banks under the Existing Revolving Credit Agreement signatory thereto, and the lenders under the Existing Revolving Credit Agreement signatory thereto (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on November 3, 2016, File No. 001-32597) | |
10.47 | Pledge and Security Agreement, dated as of November 21, 2016, among CF Industries Holdings, Inc., CF Industries, Inc., the Subsidiary Guarantors (as defined therein) party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on November 22, 2016, File No. 001-32597) | |
10.48 | 364-Day Bridge Credit Agreement, dated as of September 18, 2015, among CF Industries Holdings, Inc., the borrowers from time to time party thereto, the lenders from time to time party thereto, and Morgan Stanley Senior Funding, Inc., as administrative agent (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on September 23, 2015, File No. 001-32597) | |
10.49 | Amendment No. 1, dated as of December 20, 2015, to the 364-Day Bridge Credit Agreement among CF Industries Holdings, Inc., CF Industries, Inc., the lenders party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on December 21, 2015, File No. 001-32597) | |
10.50 | Amended and Restated Nitrogen Fertilizer Purchase Agreement, dated December 18, 2015, by and between CF Industries Nitrogen, LLC and CHS Inc. (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.'s Current Report on Form 8-K filed with the SEC on December 18, 2015, File No. 001-32597)* | |
12 | Ratio of earnings to fixed charges | |
21 | Subsidiaries of the registrant | |
23 | Consent of KPMG LLP, independent registered public accounting firm | |
31.1 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 | Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2 | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101 | The following financial information from CF Industries Holdings, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, formatted in XBRL (eXtensible Business Reporting Language): (1) Consolidated Statements of Operations, (2) Consolidated Statements of Comprehensive (Loss) Income, (3) Consolidated Balance Sheets, (4) Consolidated Statements of Equity, (5) Consolidated Statements of Cash Flows and (6) the Notes to Consolidated Financial Statements |
* | Portions omitted pursuant to an order granting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. |
** | Management contract or compensatory plan or arrangement required to be filed (and/or incorporated by reference) as an exhibit to this Annual Report on Form 10-K pursuant to Item 15(a)(3) of Form 10-K. |
CF INDUSTRIES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES HOLDINGS, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES ENTERPRISES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES SALES, LLC | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee | |||||
By: | /s/ Julius R. Zamora | ||||
Name: | Julius R. Zamora | ||||
Title: | Vice President |
CF INDUSTRIES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES HOLDINGS, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES ENTERPRISES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES SALES, LLC | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee | |||||
By: | /s/ Julius R. Zamora | ||||
Name: | Julius R. Zamora | ||||
Title: | Vice President |
CF INDUSTRIES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES HOLDINGS, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES ENTERPRISES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES SALES, LLC | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee | |||||
By: | /s/ Julius R. Zamora | ||||
Name: | Julius R. Zamora | ||||
Title: | Vice President |
CF INDUSTRIES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES HOLDINGS, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES ENTERPRISES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES SALES, LLC | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee | |||||
By: | /s/ Julius R. Zamora | ||||
Name: | Julius R. Zamora | ||||
Title: | Vice President |
CF INDUSTRIES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES HOLDINGS, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES ENTERPRISES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES SALES, LLC | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee | |||||
By: | /s/ Julius R. Zamora | ||||
Name: | Julius R. Zamora | ||||
Title: | Vice President |
CF INDUSTRIES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES HOLDINGS, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES ENTERPRISES, INC. | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
CF INDUSTRIES SALES, LLC | |||||
By: | /s/ Daniel L. Swenson | ||||
Name: | Daniel L. Swenson | ||||
Title: | Vice President, Treasurer, and Assistant Secretary |
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee | |||||
By: | /s/ Julius R. Zamora | ||||
Name: | Julius R. Zamora | ||||
Title: | Vice President |
Year ended December 31, | |||||||||||||||||||||
(Dollars in millions) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Pretax (loss) earnings from continuing operations | $ | (226 | ) | $ | 1,058 | $ | 2,187 | $ | 2,210 | $ | 2,829 | ||||||||||
Plus: | |||||||||||||||||||||
Fixed charges | 497 | 343 | 312 | 264 | 232 | ||||||||||||||||
Distributed income of equity investees | 14 | 48 | 79 | 59 | 111 | ||||||||||||||||
Amortization of capitalized interest | 9 | 2 | 1 | 4 | 4 | ||||||||||||||||
Less: | |||||||||||||||||||||
Preference security dividends of CF Industries Nitrogen, LLC | (79 | ) | — | — | — | — | |||||||||||||||
Preference security dividends of Terra Nitrogen Company, L.P. | (40 | ) | (45 | ) | (46 | ) | (66 | ) | (78 | ) | |||||||||||
Capitalized interest | (166 | ) | (154 | ) | (74 | ) | (27 | ) | (9 | ) | |||||||||||
Earnings for fixed charge coverage ratio | $ | 9 | $ | 1,252 | $ | 2,459 | $ | 2,444 | $ | 3,089 | |||||||||||
Fixed charges | |||||||||||||||||||||
Interest expensed (a) | $ | 200 | $ | 133 | $ | 178 | $ | 152 | $ | 135 | |||||||||||
Capitalized interest | 166 | 154 | 74 | 27 | 9 | ||||||||||||||||
Estimated interest in rent expense (b) | 12 | 11 | 14 | 19 | 10 | ||||||||||||||||
Preference security dividends of CF Industries Nitrogen, LLC | 79 | — | — | — | — | ||||||||||||||||
Preference security dividends of Terra Nitrogen Company, L.P. | 40 | 45 | 46 | 66 | 78 | ||||||||||||||||
$ | 497 | $ | 343 | $ | 312 | $ | 264 | $ | 232 | ||||||||||||
Ratio of earnings to fixed charges | 0.02 | x | 3.6 | x | 7.9 | x | 9.3 | x | 13.3 | x |
Name of Subsidiary(1) | Jurisdiction of Incorporation or Organization | Percentage Held by CF(2) | |||
Canadian Fertilizers Limited | Alberta, Canada | ||||
CF Chemicals, Ltd. | Canada | ||||
CF Fertilisers UK Group Limited | United Kingdom | ||||
CF Fertilisers UK Limited | United Kingdom | ||||
CF Global Holding Company Inc. | Delaware | ||||
CF Industries (Barbados) SRL | Barbados | ||||
CF Industries Canada Investment ULC | Alberta, Canada | ||||
CF Industries Employee Services, LLC | Delaware | ||||
CF Industries Enterprises, Inc. | Delaware | ||||
CF Industries, Inc. | Delaware | ||||
CF Industries International Holdings Luxembourg S. à r. l. | Luxembourg | ||||
CF Industries Luxembourg S. à r. l. | Luxembourg | ||||
CF Industries Nitrogen, LLC | Delaware | 88.6 | % | ||
CF Industries Peru S.A.C. | Lima, Peru | ||||
CF Industries Properties LLC | Delaware | ||||
CF Industries Sales, LLC | Delaware | ||||
CF Industries (UK) Limited | United Kingdom | ||||
CF Nitrogen Trinidad Limited | Trinidad and Tobago | ||||
CF Partners (Canada) LP | Alberta, Canada | ||||
CFK Holdings, Inc. | Delaware | ||||
Oklahoma CO2 Partnership | Oklahoma | 37.784 | % | ||
Point Lisas Nitrogen Limited | Trinidad and Tobago | 50 | % | ||
Terra Environmental Technologies LLC | Delaware | ||||
Terra International (Canada) Inc. | Canada | ||||
Terra International (Oklahoma) LLC | Delaware | 88.6 | % | ||
Terra LP Holdings LLC | Delaware | ||||
Terra Nitrogen Company, L.P. | Delaware | 75.321 | % | ||
Terra Nitrogen GP Inc. | Delaware | ||||
Terra Nitrogen, Limited Partnership | Delaware | 75.568 | % |
1. | I have reviewed this Annual Report on Form 10-K of CF Industries Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 23, 2017 | /s/ W. ANTHONY WILL | |
W. Anthony Will President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this Annual Report on Form 10-K of CF Industries Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 23, 2017 | /s/ DENNIS P. KELLEHER | |
Dennis P. Kelleher Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ W. ANTHONY WILL | ||
W. Anthony Will President and Chief Executive Officer (Principal Executive Officer) | ||
Date: | February 23, 2017 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ DENNIS P. KELLEHER | ||
Dennis P. Kelleher Senior Vice President and Chief Financial Officer (Principal Financial Officer) | ||
Date: | February 23, 2017 |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 31, 2017 |
Jun. 30, 2016 |
|
Document and Entity Information | |||
Entity Registrant Name | CF Industries Holdings, Inc. | ||
Entity Central Index Key | 0001324404 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 5,597,334,751 | ||
Entity Common Stock, Shares Outstanding | 233,114,691 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | Q4 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
May 22, 2016 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement [Abstract] | ||||||||||||
Net sales | $ 867.0 | $ 680.0 | $ 1,134.0 | $ 1,004.0 | $ 1,115.0 | $ 928.0 | $ 1,311.0 | $ 954.0 | $ 3,685.0 | $ 4,308.0 | $ 4,743.0 | |
Cost of sales | 2,845.0 | 2,761.0 | 2,965.0 | |||||||||
Gross margin | 94.0 | 2.0 | 527.0 | 217.0 | 280.0 | 165.0 | 686.0 | 416.0 | 840.0 | 1,547.0 | 1,778.0 | |
Selling, general and administrative expenses | 174.0 | 170.0 | 152.0 | |||||||||
Transaction costs | $ 150.0 | 179.0 | 57.0 | 0.0 | ||||||||
Other operating—net | 208.0 | 92.0 | 53.0 | |||||||||
Total other operating costs and expenses | 561.0 | 319.0 | 205.0 | |||||||||
Gain on sale of phosphate business | 0.0 | 0.0 | 750.0 | |||||||||
Equity in (losses) earnings of operating affiliates | (145.0) | (35.0) | 43.0 | |||||||||
Operating earnings | 134.0 | 1,193.0 | 2,366.0 | |||||||||
Interest expense | 200.0 | 133.0 | 178.0 | |||||||||
Interest income | (5.0) | (2.0) | (1.0) | |||||||||
Loss on debt extinguishment | (167.0) | 0.0 | 0.0 | |||||||||
Other non-operating—net | (2.0) | 4.0 | 2.0 | |||||||||
(Loss) earnings before income taxes and equity in earnings of non-operating affiliates | (226.0) | 1,058.0 | 2,187.0 | |||||||||
Income tax (benefit) provision | (68.0) | 396.0 | 773.0 | |||||||||
Equity in earnings of non-operating affiliates—net of taxes | 0.0 | 72.0 | 23.0 | |||||||||
Net (loss) earnings | (158.0) | 734.0 | 1,437.0 | |||||||||
Less: Net earnings attributable to noncontrolling interests | 119.0 | 34.0 | 47.0 | |||||||||
Net (loss) earnings attributable to common stockholders | $ (320.0) | $ (30.0) | $ 47.0 | $ 26.0 | $ 27.0 | $ 90.0 | $ 352.0 | $ 231.0 | $ (277.0) | $ 700.0 | $ 1,390.0 | |
Net (loss) earnings per share attributable to common stockholders: | ||||||||||||
Basic (in dollars per share) | $ (1.38) | $ (0.13) | $ 0.20 | $ 0.11 | $ 0.11 | $ 0.39 | $ 1.50 | $ 0.96 | $ (1.19) | $ 2.97 | $ 5.43 | |
Diluted (in dollars per share) | $ (1.38) | $ (0.13) | $ 0.20 | $ 0.11 | $ 0.11 | $ 0.39 | $ 1.49 | $ 0.96 | $ (1.19) | $ 2.96 | $ 5.42 | |
Weighted-average common shares outstanding: | ||||||||||||
Basic (in shares) | 233.1 | 235.3 | 255.9 | |||||||||
Diluted (in shares) | 233.1 | 236.1 | 256.7 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Comprehensive Income [Abstract] | |||
Net (loss) earnings | $ (158.0) | $ 734.0 | $ 1,437.0 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustment—net of taxes | (74.0) | (157.0) | (72.0) |
Unrealized loss on hedging derivatives—net of taxes | 0.0 | 0.0 | (2.0) |
Defined benefit plans—net of taxes | (74.0) | 67.0 | (43.0) |
Total other comprehensive income (loss) | (148.0) | (90.0) | (117.0) |
Comprehensive (loss) income | (306.0) | 644.0 | 1,320.0 |
Less: Comprehensive income attributable to noncontrolling interests | 119.0 | 34.0 | 47.0 |
Comprehensive (loss) income attributable to common stockholders | $ (425.0) | $ 610.0 | $ 1,273.0 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 233,141,771 | 235,493,395 |
Treasury stock, shares | 27,602 | 2,411,839 |
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Cash dividends (in dollars per share) | $ 1.2 | $ 1.2 | $ 1.00 |
Background and Basis of Presentation |
12 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||
Background and Basis of Presentation | Background and Basis of Presentation We are one of the largest manufacturers and distributors of nitrogen fertilizer and other nitrogen products in the world. Our principal customers are cooperatives, independent fertilizer distributors, farmers and industrial users. Our principal nitrogen fertilizer products are ammonia, 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. Our manufacturing and distribution facilities are concentrated in the midwestern United States and other major agricultural areas of the United States, Canada and the United Kingdom. We also export nitrogen fertilizer products from our Donaldsonville, Louisiana and Yazoo City, Mississippi manufacturing facilities, and our United Kingdom manufacturing facilities in Billingham and Ince. 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. Our principal assets include:
Reclassifications and Changes in Presentation During the third quarter of 2016, we adopted Accounting Standards Update (ASU) No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. As a result, we reclassified certain amounts in our consolidated statements of cash flows for the years ended December 31, 2015 and 2014. See Note 3—New Accounting Standards for additional information. CF Fertilisers UK Acquisition On July 31, 2015, we acquired the remaining 50% equity interest in CF Fertilisers UK Group Limited (formerly known as GrowHow UK Group Limited) (CF Fertilisers UK) not previously owned by us for total consideration of $570 million, and CF Fertilisers UK became a wholly owned subsidiary. The financial results of CF Fertilisers UK have been consolidated within our financial results since July 31, 2015. Prior to July 31, 2015, our initial 50% equity interest in CF Fertilisers UK was accounted for as an equity method investment, and the financial results of this investment were included in our consolidated statements of operations in equity in earnings of non-operating affiliates—net of taxes. See Note 4—Acquisitions and Divestitures for additional information on the CF Fertilisers UK acquisition. Phosphate Business Disposition Prior to March 17, 2014, we also manufactured and distributed phosphate fertilizer products. Our principal phosphate products were diammonium phosphate (DAP) and monoammonium phosphate (MAP). On March 17, 2014, we completed the sale of our phosphate mining and manufacturing business, which was located in Florida, to The Mosaic Company (Mosaic) for approximately $1.4 billion in cash. Upon selling the phosphate business, we began to supply Mosaic with ammonia produced by our PLNL joint venture. The contract to supply ammonia to Mosaic from our PLNL joint venture represents the continuation of a supply practice that previously existed between our former phosphate mining and manufacturing business and other operations of the Company. Because of the significance of this continuing supply practice, in accordance with U.S. GAAP, the phosphate mining and manufacturing business is not reported as discontinued operations in our consolidated statements of operations. See Note 4—Acquisitions and Divestitures for additional information. |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Consolidation and Noncontrolling Interests The consolidated financial statements of CF Holdings include the accounts of CF Industries and all majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. TNCLP is a master limited partnership that is consolidated in the financial statements of CF Holdings. TNCLP owns the nitrogen fertilizer manufacturing facility in Verdigris, Oklahoma. We own approximately 75.3% of TNCLP and outside investors own the remaining approximately 24.7%. Partnership interests in TNCLP are traded on the New York Stock Exchange (NYSE). As a result, TNCLP files separate financial reports with the Securities and Exchange Commission (SEC). The outside investors' limited partnership interests in the partnership are included in noncontrolling interests in our consolidated financial statements. This noncontrolling interest represents the noncontrolling unitholders' interest in the partners' capital of TNCLP. On February 1, 2016, CHS purchased a minority equity interest in CFN. We own a majority equity interest in CFN and consolidate CFN in our financial statements. CHS' minority equity interest in CFN is included in noncontrolling interests in our consolidated financial statements, and represents CHS' interest in the membership interests of CFN. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of 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 customer incentives, 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 plans, the assumptions used to determine the relative fair values of new reportable segments and the assumptions used in the valuation of stock-based compensation awards granted to employees. Revenue Recognition The basic criteria necessary for revenue recognition are: (1) evidence that a sales arrangement exists, (2) delivery of goods has occurred, (3) the seller's price to the buyer is fixed or determinable, and (4) collectability is reasonably assured. We recognize revenue when these criteria have been met and when title and risk of loss transfers to the customer, which can be at the plant gate, a distribution facility, a supplier location or a customer destination. Revenue from forward sales programs is recognized on the same basis as other sales (when title and risk of loss transfers to the customer) regardless of when the customer advances are received. We offer certain incentives that typically involve rebates if a customer reaches a specified level of purchases. Customer incentives are accrued monthly and reported as a reduction in net sales. This process is intended to report sales at the ultimate net realized price and requires the use of estimates. Shipping and handling fees billed to customers are reported in revenue. Shipping and handling costs incurred by us are included in cost of sales. Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less. The carrying value of cash and cash equivalents approximates fair value. Investments Short-term investments and noncurrent investments are accounted for primarily as available-for-sale securities reported at fair value with changes in fair value reported in other comprehensive income unless fair value is below amortized cost (i.e., the investment is impaired) and the impairment is deemed other-than-temporary, in which case, some or all of the decline in value would be charged to earnings. The carrying values of short-term investments approximate fair values because of the short maturities and the highly liquid nature of these investments. Restricted Cash In connection with our capacity expansion projects, we granted a contractor a security interest in a restricted cash account. We maintain a cash balance in that account equal to the cancellation fees for procurement services and equipment that would arise if the projects were canceled. This restricted cash is not included in our cash and cash equivalents and is reported separately on our consolidated balance sheets. Contributions to and withdrawals from the restricted cash account are reported on our consolidated statements of cash flows as investing activities. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at face amounts less an allowance for doubtful accounts. The allowance is an estimate based on historical collection experience, current economic and market conditions, and a review of the current status of each customer's trade accounts receivable. A receivable is past due if payments have not been received within the agreed-upon invoice terms. Account balances are charged-off against the allowance when management determines that it is probable that the receivable will not be recovered. Accounts receivable includes trade receivables and non-trade receivables. Inventories Inventories are reported at the lower of cost or market with cost determined on a first-in, first-out (FIFO) and average cost basis. Inventory includes the cost of materials, production labor and production overhead. Inventory at warehouses and terminals also includes distribution costs to move inventory to the distribution facilities. Market value is reviewed at least quarterly. Fixed production costs related to idle capacity are not included in the cost of inventory but are charged directly to cost of sales in the period incurred. Investment in Unconsolidated Affiliate The equity method of accounting is used for investments in affiliates that we do not consolidate, but over which we have the ability to exercise significant influence. Our equity method investment for which the results are included in operating earnings consists of our 50% ownership interest in PLNL, which operates an ammonia production facility in the Republic of Trinidad and Tobago. Our share of the net earnings from this investment is reported as an element of earnings from operations because PLNL's operations provide additional production and are integrated with our supply chain and sales activities in the ammonia segment. See Note 8—Equity Method Investments for additional information. Profits resulting from sales or purchases with equity method investees are eliminated until realized by the investee or investor, respectively. Investments in affiliates are reviewed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. When circumstances indicate that the fair value of an investment in an affiliate is less than its carrying value, and the reduction in value is other than temporary, the reduction in value is recognized immediately in earnings. Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method or the units-of-production (UOP) method and are recorded over the estimated useful life of the property, plant and equipment. Useful lives are as follows:
We periodically review the useful lives assigned to our property, plant and equipment, as well as estimated production capacities used to develop UOP depreciation expense, and we change the estimates to reflect the results of those reviews. Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facilities during a full plant shutdown are referred to as plant turnarounds. Plant turnarounds are accounted for under the deferral method, as opposed to the direct expense or built-in overhaul methods. Under the deferral method, expenditures related to turnarounds are capitalized in property, plant and equipment when incurred and amortized to production costs on a straight-line basis over the period benefited, which is until the next scheduled turnaround in up to five years. If the direct expense method were used, all turnaround costs would be expensed as incurred. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized. Turnaround costs are classified as investing activities in the consolidated statements of cash flows. See Note 6—Property, Plant and Equipment—Net for additional information. Recoverability of Long-Lived Assets We review property, plant and equipment and other long-lived assets in order to assess recoverability based on expected future undiscounted cash flows whenever events or circumstances indicate that the carrying value may not be recoverable. If the sum of the expected future net cash flows is less than the carrying value, an impairment loss is recognized. The impairment loss is measured as the amount by which the carrying value exceeds the fair value of the asset. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to the assets acquired and liabilities assumed. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if certain impairment conditions arise. We perform our annual goodwill impairment review in the fourth quarter of each year at the reporting unit level. Our evaluation can begin with a qualitative assessment of the factors that could impact the significant inputs used to estimate fair value. If after performing the qualitative assessment, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then no further testing is performed. However, if it is unclear based on the results of the qualitative test, we perform a quantitative test involving potentially two steps. The first step compares the fair value of a reporting unit with its carrying amount, including goodwill. We use an income-based valuation method, determining the present value of future cash flows, to estimate the fair value of a reporting unit. If the fair value of a reporting unit exceeds its positive carrying amount, goodwill of the reporting unit is considered not impaired, and the second step of the impairment test is unnecessary. The second step of the goodwill impairment test, if needed, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. We recognize an impairment loss immediately to the extent the carrying value exceeds its implied fair value. Our intangible assets are presented in other assets on our consolidated balance sheets. See Note 7—Goodwill and Other Intangible Assets for additional information regarding our goodwill and other intangible assets. Leases Leases may be classified as either operating leases or capital leases. Assets acquired under capital leases, if any, would be depreciated on the same basis as property, plant and equipment. For operating leases, rental payments, including rent holidays, leasehold incentives, and scheduled rent increases are expensed on a straight-line basis. Leasehold improvements are amortized over the shorter of the depreciable lives of the corresponding fixed assets or the lease term including any applicable renewals. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are projected to be recovered or settled. Realization of deferred tax assets is dependent on our ability to generate sufficient taxable income of an appropriate character in future periods. A valuation allowance is established if it is determined to be more likely than not that a deferred tax asset will not be realized. Significant judgment is applied in evaluating the need for and magnitude of appropriate valuation allowances against deferred tax assets. Interest and penalties related to unrecognized tax benefits are reported as interest expense and income tax expense, respectively. A deferred income tax liability is recorded for income taxes that would result from the repatriation of the portion of the investment in the Company's non-U.S. subsidiaries and joint venture that are considered to not be permanently reinvested. No deferred income tax liability is recorded for the remainder of our investment in non-U.S. subsidiaries and joint venture, which we believe to be permanently reinvested. Derivative Financial Instruments Natural gas is the principal raw material used to produce nitrogen fertilizers. We manage the risk of changes in natural gas prices primarily through the use of derivative financial instruments. The derivative instruments that we use are primarily fixed price swaps and options traded in the over-the-counter (OTC) markets. The derivatives reference primarily NYMEX futures contract prices, which represent the basis for fair value at any given time. These derivatives are traded in months forward and settlements are scheduled to coincide with anticipated gas purchases during those future periods. In order to manage our exposure to changes in foreign currency exchange rates related to our capacity expansion projects, we used foreign currency derivatives, primarily forward exchange contracts. All of these foreign currency derivatives settled in 2016. The accounting for the change in the fair value of a derivative instrument depends on whether the instrument has been designated as a hedging instrument and whether the instrument is effective as part of a hedging relationship. Changes in the fair value of derivatives not designated as hedging instruments and the ineffective portion of derivatives designated as cash flow hedges are recorded in the consolidated statements of operations as the changes occur. Changes in the fair value of derivatives designated as cash flow hedging instruments considered effective are recorded in accumulated other comprehensive income (AOCI) as the changes occur, and are reclassified into income or expense as the hedged item is recognized in earnings. Derivative financial instruments are accounted for at fair value and recognized as current or noncurrent assets and liabilities on our consolidated balance sheets. The fair values of derivative instruments and any related cash collateral are reported on a gross basis rather than on a net basis. Cash flows related to natural gas derivatives are reported as operating activities. Cash flows related to foreign currency derivatives are reported as investing activities since they hedged future payments for the construction of long-term assets. We do not use derivatives for trading purposes and are not a party to any leveraged derivatives. See Note 15—Derivative Financial Instruments for additional information. Customer Advances Customer advances represent cash received from customers following acceptance of orders under our forward sales programs. Such advances typically represent a significant portion of the contract's sales value and are generally collected by the time the product is shipped, thereby reducing or eliminating accounts receivable from customers upon shipment. Revenue is recognized when title and risk of loss transfers upon shipment or delivery of the product to customers. Environmental Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations are expensed. Expenditures that increase the capacity or extend the useful life of an asset, improve the safety or efficiency of the operations, or mitigate or prevent future environmental contamination are capitalized. Liabilities are recorded when it is probable that an obligation has been incurred and the costs can be reasonably estimated. Environmental liabilities are not discounted. Stock-based Compensation We grant stock-based compensation awards under our equity and incentive plans. The awards that have been granted to date are nonqualified stock options, restricted stock awards, restricted stock units and performance share units. The cost of employee services received in exchange for the awards is measured based on the fair value of the award on the grant date and is recognized as expense on a straight-line basis over the period during which the employee is required to provide the services. See Note 19—Stock-Based Compensation for additional information. Treasury Stock We periodically retire treasury shares acquired through repurchases of our common stock and return those shares to the status of authorized but unissued. We account for treasury stock transactions under the cost method. For each reacquisition of common stock, the number of shares and the acquisition price for those shares is added to the treasury stock count and total value. When treasury shares are retired, we allocate the excess of the repurchase price over the par value of shares acquired to both retained earnings and paid-in capital. The portion allocated to paid-in capital is determined by applying the average paid-in capital per share, and the remaining portion is recorded to retained earnings. Litigation From time to time, we are subject to ordinary, routine legal proceedings related to the usual conduct of our business. We may also be involved in proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of our various plants and facilities. Accruals for such contingencies are recorded to the extent management concludes their occurrence is probable and the financial impact of an adverse outcome is reasonably estimable. Legal fees are recognized as incurred and are not included in accruals for contingencies. Disclosure for specific legal contingencies is provided if the likelihood of occurrence is at least reasonably possible and the exposure is considered material to the consolidated financial statements. In making determinations of likely outcomes of litigation matters, many factors are considered. These factors include, but are not limited to, past history, scientific and other evidence, and the specifics and status of each matter. If the assessment of various factors changes, the estimates may change. Predicting the outcome of claims and litigation, and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from estimates and accruals. Foreign Currency Translation We translate the financial statements of our foreign subsidiaries with non-U.S. dollar functional currencies using period-end exchange rates for assets and liabilities and weighted-average exchange rates for each period for revenues and expenses. The resulting translation adjustments are recorded as a separate component of AOCI within stockholders' equity. Foreign currency-denominated assets and liabilities are remeasured into U.S. dollars at exchange rates existing at the respective balance sheet dates. Gains and losses resulting from these foreign currency transactions are included in other operating—net on our consolidated statements of operations. Gains and losses resulting from intercompany foreign currency transactions that are of a long-term investment nature, if any, are reported in other comprehensive income. Debt Issuance Costs Costs associated with the issuance of debt are recorded on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Costs associated with entering into revolving credit facilities are recorded as an asset in noncurrent assets. All debt issuance costs are amortized over the term of the related debt. Debt issuance discounts are netted against the related debt and are amortized over the term of the debt using the effective interest method. See Note 12—Financing Agreements for additional information. |
New Accounting Standards |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Adopted Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU makes a number of changes meant to simplify and improve accounting for share-based payments, including amendments to share-based accounting for income taxes, classifications in the statement of cash flows and share award forfeiture accounting. We elected to early adopt ASU No. 2016-09 in the third quarter of 2016. As a result, we retrospectively recast our consolidated statement of cash flows for the years ended December 31, 2015 and 2014 by reclassifying $2 million and $9 million, respectively, of excess tax benefit previously reported in financing activities to operating activities and $1 million and $3 million, respectively, of cash outflows related to shares withheld for taxes from operating activities to financing activities. We also elected to recognize equity award forfeitures as they occur to determine the amount of compensation cost to be recognized in each period. The update also requires us to recognize excess tax benefits and tax deficiencies in the statement of operations when awards are settled. The adoption of this ASU did not have a material impact on our consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). The amendments in ASU No. 2015-07 remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. ASU No. 2015-07 is effective for fiscal years beginning after December 15, 2015 and requires retrospective application. We elected to early adopt this ASU in the fourth quarter of 2015, and, as a result, certain of the investments in our defined benefit pension plans were reflected as reconciling items to the presentation of investments categorized within the fair value hierarchy table. In 2016, the American Institute of Certified Public Accountants issued guidance that clarified characteristics of investments that should continue to be categorized within the fair value hierarchy table. As a result, we recast certain investments that were reported as reconciling items to the December 31, 2015 fair value hierarchy tables. See Note 11—Pension and Other Postretirement Benefits for additional information. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. The ASU requires retrospective application and represents a change in accounting principle. In August 2015, the FASB issued the related ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which clarifies ASU No. 2015-03 and states that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We adopted ASU No. 2015-03 and ASU No. 2015-15 retrospectively in the first quarter of 2016, which resulted in the reclassification of deferred debt issuance costs as of December 31, 2015 of $56 million from other assets to an offset of long-term debt on our consolidated balance sheet as of December 31, 2015. Deferred debt issuance costs related to our revolving credit agreement continue to be reflected in other assets. See Note 12—Financing Agreements for additional information. Recently Issued Pronouncements In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted in the first interim period of an annual reporting period for which financial statements have not been issued. We are currently evaluating the impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the lease accounting requirements in Accounting Standards Codification (ASC) Topic 840, Leases. This ASU will require lessees to recognize the rights and obligations resulting from virtually all leases (other than leases that meet the definition of a short-term lease) on their balance sheets as right-of-use assets with corresponding lease liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of income and expense recognized and expected to be recognized from existing contracts. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted, and requires the modified retrospective method of adoption. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements. See Note 24—Leases for additional information. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, effective for annual and interim periods beginning after December 15, 2016. ASU No. 2015-11 changes the inventory measurement principle for entities using the FIFO or average cost methods. For entities utilizing one of these methods, the inventory measurement principle will change from lower of cost or market to the lower of cost and net realizable value. We follow the FIFO or average cost methods and we have evaluated the effect of this ASU and we believe it will not have a material effect on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments. Additionally, the costs to obtain and fulfill a contract, including assets to be recognized, are to be capitalized and such capitalized costs should be disclosed. In 2016, the FASB issued additional ASUs that enhance the operability of the principal versus agent guidance in ASU No. 2014-09 by clarifying that an entity should consider the nature of each good or service promised to a customer at the individual good or service level, clarify that ASU No. 2014-09 should not be applied to immaterial performance obligations, and enhance the guidance around the treatment of shipping costs incurred to fulfill performance obligations. As modified by ASU No. 2015-14, Deferral of the Effective Date, the effective date of ASU No. 2014-09 is for interim and annual periods beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. We are analyzing the impact of ASU No. 2014-09 on our revenue contracts by comparing the revenue recognition that would have occurred from applying this ASU to revenue contracts that existed in 2015 and 2016. We are also reviewing our accounting policies and disclosures to determine changes needed to comply with this ASU, as well as identifying changes to our business processes, systems, and controls needed to support adoption of this ASU. |
Acquisitions and Divestitures |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures | Acquisitions and Divestitures CF Fertilisers UK Acquisition On July 31, 2015, we acquired the remaining 50% equity interest in CF Fertilisers UK Group Limited (formerly known as GrowHow UK Group Limited) (CF Fertilisers UK) not previously owned by us for total consideration of $570 million, and CF Fertilisers UK became wholly owned by us. The purchase price was funded with cash on hand. The financial results of CF Fertilisers UK have been consolidated within our financial results since July 31, 2015. Prior to July 31, 2015, our initial 50% equity interest in CF Fertilisers UK was accounted for as an equity method investment, and the financial results of this investment were included in our consolidated statements of operations in equity in earnings of non-operating affiliates—net of taxes. During the third quarter of 2015, we recorded a gain of $94 million on the remeasurement to fair value of our initial 50% equity interest in CF Fertilisers UK that is included in equity in earnings of non-operating affiliates—net of taxes. See Note 8—Equity Method Investments for additional information. The following table summarizes the allocation of the total fair value of CF Fertilisers UK to the assets acquired and liabilities assumed in its acquisition on July 31, 2015. The fair value of the assets acquired and liabilities assumed is based on the estimated net realizable value for inventories, a replacement cost approach for property, plant and equipment and the income approach for intangible assets.
_______________________________________________________________________________
Current assets acquired included cash of $19 million, accounts receivable of $73 million and inventory of $67 million. The acquired property, plant and equipment will be depreciated over a period consistent with our existing fixed assets depreciation policy. The acquisition resulted in the recognition of $324 million of goodwill, which is not deductible for income tax purposes. Other assets acquired included intangible assets of $132 million consisting of customer relationships and trade names, which are being amortized over a weighted-average life of approximately 20 years. See Note 7—Goodwill and Other Intangible Assets for additional information related to goodwill and the acquired intangibles. Termination of Agreement to Combine with Certain of OCI N.V.’s Businesses On August 6, 2015, we entered into a definitive agreement (as amended, the Combination Agreement) to combine with the European, North American and global distribution businesses of OCI N.V. (OCI). On May 22, 2016, CF Holdings, OCI and the other parties to the Combination Agreement entered into a termination agreement (the Termination Agreement) under which the parties agreed to terminate the Combination Agreement by mutual written consent. Pursuant to the Termination Agreement, CF Holdings paid OCI a termination fee of $150 million, which is included in transaction costs in our consolidated statement of operations. Under the Termination Agreement, the parties to the Combination Agreement also agreed to release each other from any and all claims, actions, obligations, liabilities, expenses and fees in connection with, arising out of or related to the Combination Agreement and all ancillary agreements contemplated thereby (other than the confidentiality agreement between CF Holdings and OCI) or the transactions contemplated therein or thereby. See Note 12—Financing Agreements—Bridge Credit Agreement for additional information. Sale of Equity Method Investments During the second quarter of 2015, we sold our 50% ownership interest in an ammonia storage joint venture in Houston, Texas and our 50% ownership interest in KEYTRADE AG (Keytrade). See Note 8—Equity Method Investments for additional information. Phosphate Disposition On March 17, 2014, we sold our phosphate mining and manufacturing business to Mosaic pursuant to the terms of the definitive transaction agreement executed in October 2013, among CF Industries Holdings, Inc., CF Industries and Mosaic, for approximately $1.4 billion in cash. We recognized pre-tax and after-tax gains on the transaction of $750 million and $463 million, respectively. Under the terms of the definitive transaction agreement, the accounts receivable and accounts payable pertaining to the phosphate mining and manufacturing business and certain phosphate inventory held in distribution facilities were not sold to Mosaic in the transaction and were settled in the ordinary course. Upon selling the phosphate business, we began to supply Mosaic with ammonia produced by our PLNL joint venture. The contract to supply ammonia to Mosaic from our PLNL joint venture represents the continuation of a supply practice that previously existed between our former phosphate mining and manufacturing business and other operations of the Company. Prior to March 17, 2014, PLNL sold ammonia to us for use in the phosphate business and the cost was included in our production costs in our phosphate segment. Subsequent to the sale of the phosphate business, we now sell the PLNL-sourced ammonia to Mosaic. The revenue from these sales to Mosaic and the costs to purchase the ammonia from PLNL are now included in our ammonia segment. Our 50% share of the operating results of our PLNL joint venture continues to be included in equity in earnings of operating affiliates in our consolidated statements of operations. Because of the significance of this continuing supply practice, in accordance with U.S. GAAP, the phosphate mining and manufacturing business is not reported as discontinued operations in our consolidated statements of operations. The phosphate segment reflects the reported results of the phosphate business through March 17, 2014, plus the continuing sales of the phosphate inventory in the distribution network after March 17, 2014. The remaining phosphate inventory was sold in the second quarter of 2014; therefore, the phosphate segment does not have operating results subsequent to that quarter. |
Net Earnings Per Share |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings Per Share | Net Earnings Per Share Net earnings per share were computed as follows:
In the computation of diluted earnings per common share, potentially dilutive stock options are excluded if the effect of their inclusion is anti-dilutive. Shares for anti-dilutive stock options not included in the computation of diluted earnings per common share were 4.9 million, 1.6 million and 0.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Property, Plant and Equipment-Net |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment-Net | Property, Plant and Equipment—Net Property, plant and equipment—net consists of the following:
_______________________________________________________________________________
Depreciation and amortization related to property, plant and equipment was $607 million, $444 million and $361 million in 2016, 2015 and 2014, respectively. Plant turnarounds—Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facilities during a full plant shutdown are referred to as plant turnarounds. The expenditures related to turnarounds are capitalized in property, plant and equipment when incurred. The following is a summary of capitalized plant turnaround costs:
Scheduled replacements and overhauls of plant machinery and equipment include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors, heat exchangers and the replacement of catalysts when a full plant shutdown occurs. Scheduled inspections are also conducted during full plant shutdowns, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized. |
Goodwill and Other Intangible Assets |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table shows the carrying amount of goodwill by reportable segment as of December 31, 2016 and 2015:
All of our identifiable intangible assets have definite lives and are presented in other assets on our consolidated balance sheets at gross carrying amount, net of accumulated amortization, as follows:
Amortization expense of our identifiable intangibles was $7 million, $10 million and $4 million for the years ended December 31, 2016, 2015 and 2014, respectively. In early 2015, management approved a plan to discontinue the use of the TerraCair brand in the sale of DEF. Based on the discontinuation of the use of this brand, the related intangible assets were fully amortized during the first quarter of 2015. Total estimated amortization expense for each of the five succeeding fiscal years is as follows:
|
Equity Method Investments |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments Operating Equity Method Investment As of December 31, 2016 and December 31, 2015, we have a 50% ownership interest in PLNL, which operates an ammonia production facility in the Republic of Trinidad and Tobago. We include our share of the net earnings from this equity method investment as an element of earnings from operations because PLNL provides additional production to our operations and is integrated with our other supply chain and sales activities in the ammonia segment. The total carrying value of our equity method investment in PLNL as of December 31, 2016 was $70 million more than our share of PLNL's book value. The excess is attributable to the purchase accounting impact of our acquisition of our equity method investment in PLNL and primarily reflects the revaluation of property, plant and equipment and the value of an exclusive natural gas contract. The increased basis for property, plant and equipment and the gas contract are being amortized over a remaining period of approximately 16 years and 1 year, respectively. Our equity in earnings of PLNL is different from our ownership interest in income reported by PLNL due to amortization of these basis differences. Equity in loss of operating affiliates in 2016 and 2015 includes an impairment of our equity method investment in PLNL of $134 million and $62 million, respectively. In the fourth quarters of 2016 and 2015, we determined the carrying value of our equity method investment in PLNL exceeded fair value. This was due primarily to natural gas curtailments from the government controlled gas supplier and projected higher Trinidad gas prices. 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 $62 million, $121 million and $141 million in 2016, 2015 and 2014, respectively. Non-Operating Equity Method Investments We no longer have non-operating equity method investments as a result of the sale of our 50% ownership interest in Keytrade during the second quarter of 2015 and our July 31, 2015 acquisition of the remaining 50% equity interest in CF Fertilisers UK not previously owned by us. See Note 4—Acquisitions and Divestitures for additional information. Equity in earnings of non-operating affiliates—net of taxes for the year ended December 31, 2015 of $72 million includes our after-tax gain of $94 million on remeasurement to fair value of our initial 50% equity interest in CF Fertilisers UK, the after-tax loss of $29 million on the sale of our interests in Keytrade, and our equity in earnings (losses) of Keytrade, through the date of sale, and of CF Fertilisers UK, through the acquisition date. |
Fair Value Measurements |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Our cash and cash equivalents and other investments consist of the following:
Under our short-term investment policy, we may invest our cash balances, either directly or through mutual funds, in several types of investment-grade securities, including notes and bonds issued by governmental entities or corporations. Securities issued by governmental entities include those issued directly by the Federal government; those issued by state, local or other governmental entities; and those guaranteed by entities affiliated with governmental entities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present assets and liabilities included in our consolidated balance sheets as of December 31, 2016 and 2015 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value:
Cash Equivalents As of December 31, 2016 and 2015, our cash equivalents consisted primarily of U.S. and Canadian government obligations and money market mutual funds that invest in U.S. government obligations and other investment-grade securities. Restricted Cash We maintain a cash account for which the use of the funds is restricted. The restricted cash account was put in place to satisfy certain requirements included in our engineering and procurement services contract for our capacity expansion projects. Under the terms of this contract, we were required to grant an affiliate of ThyssenKrupp Industrial Solutions a security interest in a restricted cash account and maintain a cash balance in that account equal to the cancellation fees for procurement services and equipment that would arise if we were to cancel the projects. Derivative Instruments The derivative instruments that we use are primarily natural gas fixed price swaps, natural gas options and foreign currency forward contracts traded in the over-the-counter (OTC) markets with multi-national commercial banks, other major financial institutions or large energy companies. The natural gas derivative contracts represent anticipated natural gas needs for future periods and settlements are scheduled to coincide with anticipated natural gas purchases during those future periods. The foreign currency derivative contracts held were for the exchange of a specified notional amount of currencies at specified future dates coinciding with anticipated foreign currency cash outflows associated with our Donaldsonville, Louisiana and Port Neal, Iowa capacity expansion projects. All of our foreign currency derivatives settled in 2016. The natural gas derivative contracts settle using primarily NYMEX futures prices. To determine the fair value of these instruments, we use quoted market prices from NYMEX and standard pricing models with inputs derived from or corroborated by observable market data such as forward curves supplied by an industry-recognized independent third party. The foreign currency derivatives are valued based on quoted market prices supplied by an industry-recognized independent third party. See Note 15—Derivative Financial Instruments for additional information. Embedded Derivative Liability Under the terms of our strategic venture with CHS, if our credit rating is reduced below certain levels by two of three specified credit rating agencies, we are required to make a non-refundable yearly payment of $5 million to CHS. The payment would continue on a yearly basis until the earlier of the date that our credit rating is upgraded to or above certain levels by two of the three specified credit rating agencies or February 1, 2026. On February 1, 2016, we recognized this term of the strategic venture as an embedded derivative and its value of $8 million was included in other liabilities on our consolidated balance sheet. See Note 17—Noncontrolling Interests for additional information. During 2016, we recorded adjustments to increase the value of the embedded derivative liability by $23 million to reflect our credit evaluations. The inputs into the fair value measurement include the probability of future upgrades and downgrades of our credit rating based on historical credit rating movements of other public companies and the discount rates to be applied to potential annual payments based on applicable credit spreads of other public companies at different credit rating levels. Based on these inputs, our fair value measurement is classified as Level 2. Additionally, as a result of the reduction in our credit rating in the fourth quarter of 2016, we made a $5 million payment to CHS. The embedded derivative liability of $26 million as of December 31, 2016, is included in other liabilities and other current liabilities on our consolidated balance sheet. Included in other operating—net in our consolidated statement of operations is a net loss of $23 million. Nonqualified Employee Benefit Trusts We maintain trusts associated with certain nonqualified supplemental pension plans. The investments are accounted for as available-for-sale securities. The fair values of the trust assets are based on daily quoted prices in an active market, which represents the net asset values of the shares held in the trusts. These trusts are included on our consolidated balance sheets in other assets. Financial Instruments The carrying amounts and estimated fair value of our financial instruments are as follows:
The fair value of our long-term debt was based on either quoted prices for identical or similar liabilities in markets that are not active or valuation models in which all significant inputs and value drivers are observable and, as a result, they are classified as Level 2 inputs. The carrying amounts of cash and cash equivalents, as well as instruments included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair values because of their short-term maturities. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We also have assets and liabilities that may be measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment, allocation of purchase price in an acquisition or when a new liability is being established that requires fair value measurement. These include long-lived assets, goodwill and other intangible assets and investments in unconsolidated subsidiaries which may be written down to fair value as a result of impairment. The fair value measurements related to each of these rely primarily on Company-specific inputs and the Company's assumptions about the use of the assets. Since certain of the Company’s assumptions would involve inputs that are not observable, these fair values would reside within Level 3 of the fair value hierarchy. We review the carrying value of our goodwill, definite lived intangible assets, and investments in unconsolidated subsidiaries to assess recoverability as part of our annual impairment review in the fourth quarter of each year. As part of the assessment process when performing impairment tests, we estimate many factors including future sales volume, selling prices, raw materials costs, operating rates, operating expenses, inflation, discount rates, exchange rates, tax rates and capital spending. The assumptions we make are material estimates that are used in the impairment testing. Our equity method investment in the Republic of Trinidad and Tobago, PLNL, operates an ammonia plant that relies on natural gas supplied by the National Gas Company of Trinidad and Tobago Limited (NGC) pursuant to a gas sales contract (the NGC Contract). See Note 8—Equity Method Investments for additional information. PLNL has experienced curtailments in the supply of natural gas from NGC, which have reduced the ammonia production at PLNL. In 2016, NGC communicated to PLNL that it does not recognize PLNL's exercise of its option to renew the NGC Contract for an additional five-year term beyond its current termination date in September 2018, and that any NGC commitment to supply gas beyond 2018 will need to be based on new agreements regarding volume and price. PLNL has initiated arbitration proceedings against NGC and asserted claims in connection with NGC’s failure to supply the contracted quantities of natural gas, and its refusal to recognize PLNL’s exercise of its option to extend the NGC Contract. PLNL is seeking declaratory and injunctive relief, as well as damages for past and ongoing curtailments. Although PLNL believes its claims against NGC to be meritorious, it is not possible to predict the outcome of the arbitration. There are significant assumptions in the future operations of the joint venture that are uncertain at this time, including the quantities of gas NGC will make available, the cost of such gas, the estimates that are used to determine the useful lives of fixed assets and the assumptions in the discounted cash flow models utilized for recoverability and impairment testing. As part of our impairment assessment of our equity method investment in PLNL, we determined the carrying value exceeded the fair value and recognized a $134 million impairment charge in 2016. Previously, in 2015, we recognized an impairment charge of $62 million related to our equity method investment in PLNL. The carrying value of our equity method investment in PLNL at December 31, 2016 is approximately $139 million. If NGC does not make sufficient quantities of natural gas available to PLNL at prices that permit profitable operations, PLNL may cease operating its facility and we would write off the remaining investment in PLNL. |
Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The components of (loss) earnings before income taxes and equity in earnings of non-operating affiliates are as follows:
The components of the income tax (benefit) provision are as follows:
Differences in the expected income tax (benefit) provision based on statutory rates applied to (loss) earnings before income taxes and the income tax (benefit) provision reflected in the consolidated statements of operations are summarized below:
State income taxes for the year ended December 31, 2016 were impacted by investment tax credits of $13 million, net of federal tax effect, related to capital assets placed in service at our production facilities in Oklahoma that are indefinitely available to offset income taxes in that jurisdiction in future years. Our effective state income tax rate was also reduced as a result of the changes to our legal entity structure effected in the first quarter of 2016 as part of our strategic venture with CHS. See Note 17—Noncontrolling Interests for additional information. State income taxes for the year ended December 31, 2016 includes a tax benefit of $46 million, net of federal tax effect, for state net operating loss carryforwards. A valuation allowance of $4 million is recorded for certain loss carryforwards for which we do not expect to realize a future refund. The income tax provision for the tax year ended December 31, 2016 includes the tax impact of the U.S. manufacturing profits deductions claimed in prior years that will not be deductible as a result of our intention to carryback the tax net operating loss for the year ended December 31, 2016. Non-deductible capital costs for the tax year ended December 31, 2016 include certain transaction costs capitalized in the prior year that are now deductible as a result of the termination of the proposed combination with certain businesses of OCI. See Note 4—Acquisitions and Divestitures for additional information. The foreign tax rate differential is impacted by the inclusion of equity earnings from our equity method investment in PLNL, a foreign operating affiliate, which are included in pre-tax earnings on an after-tax basis and the tax effect of net operating losses of a foreign subsidiary of the Company for which a valuation allowance has been recorded. We determined the carrying value of our equity method investment in PLNL exceeded fair value and recognized an impairment of our equity method investment in PLNL of $134 million in the fourth quarter of 2016 and $62 million in the fourth quarter of 2015. The impairments are included in equity in earnings of operating affiliates. Our income tax provisions do not include a tax benefit for the impairment of our equity method investment as the impairment does not give rise to a tax deduction. See Note 8—Equity Method Investments for additional information. Foreign subsidiaries of the Company have incurred capital losses of $109 million that are indefinitely available to offset capital gains in the applicable foreign jurisdictions. As the future realization of these carryforwards is not anticipated, a valuation allowance of $28 million was recorded in the year ended December 31, 2016. The foreign tax rate differential includes a $5 million deferred tax benefit for an enacted tax rate change. Deferred tax assets and deferred tax liabilities are as follows:
For presentation purposes, the deferred tax assets and liabilities set forth in the table above as of December 31, 2016 and 2015 include the deferred tax assets and liabilities of CF Industries Nitrogen, LLC. Since February 1, 2016, CF Industries Nitrogen, LLC has been taxable as a partnership for federal income tax purposes. A foreign subsidiary of the Company has net operating loss carryforwards of $379 million that are indefinitely available in the foreign jurisdiction. As the future realization of these carryforwards is not anticipated, a valuation allowance of $111 million has been recorded. Of this amount, $17 million and $15 million were recorded as valuation allowances in the years ended December 31, 2016 and 2015, respectively. We consider the earnings of certain of our Canadian operating subsidiaries to not be permanently reinvested and we recognize a deferred tax liability for the future repatriation of these earnings, as they are earned. As of December 31, 2016, we have recorded a deferred income tax liability of approximately $27 million, which reflects the additional U.S. and foreign income taxes that would be due upon the repatriation of the accumulated earnings of our non-U.S. subsidiaries that are considered to not be permanently reinvested. As of December 31, 2016, we have approximately $830 million of permanently reinvested earnings related to investment in other non-U.S. subsidiaries and a joint venture, for which a deferred tax liability has not been recognized. It is not practicable to estimate the amount of such taxes. We file federal, provincial, state and local income tax returns principally in the United States, Canada and the United Kingdom, as well as in certain other foreign jurisdictions. In general, filed tax returns remain subject to examination by United States tax jurisdictions for years 1999 and thereafter, by Canadian tax jurisdictions for years 2006 and thereafter, and by United Kingdom tax jurisdictions for years 2014 and thereafter. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Unrecognized tax benefits decreased by $21 million and increased by $19 million for the years ended December 31, 2016 and 2015, respectively. Our effective tax rate would be affected by $91 million if these unrecognized tax benefits were to be recognized in the future. Interest expense and penalties of $4 million, $4 million, and $4 million were recorded for the years ended December 31, 2016, 2015 and 2014, respectively. Amounts recognized in our consolidated balance sheets for accrued interest and penalties related to income taxes of $28 million and $28 million are included in other liabilities as of December 31, 2016 and 2015, respectively. On December 18, 2015, the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) was signed into law and applies to tax years 2015 through 2019. One of the provisions of the PATH Act permits companies to deduct 50% of their capital expenditures for federal income tax purposes in the year qualifying assets were placed into service. We recorded a federal tax receivable of approximately $816 million for the year ended December 31, 2016 as a result of our intention to carryback the tax net operating loss that is principally the result of this tax law change. The tax receivable is expected to result in a tax refund and is included in prepaid income taxes on our consolidated balance sheet as of December 31, 2016. This receivable is primarily associated with completion of the new capacity expansion projects that were placed into service at our Donaldsonville, Louisiana and Port Neal, Iowa complexes during November and December of 2016. During the third quarter of 2015, we acquired the remaining 50% equity interest in CF Fertilisers UK not previously owned by us and recognized a $94 million gain on the remeasurement to fair value of our initial 50% equity interest in CF Fertilisers UK. The earnings in CF Fertilisers UK have been permanently reinvested. Therefore, the recognition of the $94 million gain on the remeasurement of the historical equity investment does not include the recognition of tax expense on the gain. See Note 8—Equity Method Investments for additional information. We recorded an income tax benefit of $12 million during the second quarter of 2015 for the pre-tax losses on the sale of equity method investments. The tax benefit related to the loss on the sale of our interests in Keytrade is included in equity in earnings of non-operating affiliates—net of taxes in our consolidated statements of operations. See Note 8—Equity Method Investments for additional information. |
Pension and Other Postretirement Benefits |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits We maintain five funded pension plans—three in North America (one U.S. plan and two Canadian plans) and two in the United Kingdom (CF Fertilisers UK plans acquired by us as a result of our July 31, 2015 acquisition of the remaining 50% equity interest in CF Fertilisers UK not previously owned by us). One of our Canadian plans is closed to new employees and the two United Kingdom plans are closed to new employees and future accruals. We also provide group medical insurance benefits to certain retirees in North America. The specific medical benefits provided to retirees vary by group and location. Our plan assets, benefit obligations, funded status and amounts recognized on the consolidated balance sheets for our North America and United Kingdom plans as of the December 31 measurement date are as follows:
In the table above, the line titled "change in assumptions and other" for our pension plans primarily reflects the impact of changes in discount rates and the adoption of new mortality assumptions. Amounts recognized on the consolidated balance sheets consist of the following:
Pre-tax amounts recognized in accumulated other comprehensive loss consist of the following:
Net periodic benefit cost (income) and other amounts recognized in accumulated other comprehensive loss for the years ended December 31 included the following:
In March 2014, as a result of a reduction in plan participants due to the sale of our phosphate business, we recognized:
In August 2014, we communicated to certain terminated vested participants in our U.S. pension plan an option to receive a lump sum payment for their accrued benefits. For participants who elected this option, benefit payments of $91 million were made in December 2014 and we incurred a settlement charge of approximately $10 million, with a corresponding reduction in accumulated other comprehensive loss. Of the $10 million settlement charge, $9 million was reported in cost of sales and $1 million was reported in selling, general and administrative expenses on our consolidated statement of operations for the year ended December 31, 2014. Amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2017 are as follows:
The accumulated benefit obligation (ABO) in aggregate for the defined benefit pension plans in North America was approximately $712 million and $688 million as of December 31, 2016 and December 31, 2015, respectively. The ABO in aggregate for the defined benefit pension plans in the United Kingdom was approximately $559 million and $563 million as of December 31, 2016 and December 31, 2015. The following table presents aggregated information for those individual defined benefit pension plans with an ABO in excess of plan assets as of December 31:
The following table presents aggregated information for those individual defined benefit pension plans with a PBO in excess of plan assets as of December 31:
Our pension funding policy in North America is to contribute amounts sufficient to meet minimum legal funding requirements plus discretionary amounts that we may deem to be appropriate. Actual contributions may vary from estimated amounts depending on changes in assumptions, actual returns on plan assets, changes in regulatory requirements and funding decisions. In accordance with United Kingdom pension legislation, our United Kingdom pension funding policy is to contribute amounts sufficient to meet the funding level target agreed between the employer and the trustees of the United Kingdom plans. Actual contributions are usually agreed with the plan trustees in connection with each triennial valuation and may vary following each such review depending on changes in assumptions, actual returns on plan assets, changes in regulatory requirements and funding decisions. Our consolidated pension funding contributions for 2017 are estimated to be approximately $4 million for the North America plans and $18 million for the United Kingdom plans. The expected future benefit payments for our pension and retiree medical plans are as follows:
The following assumptions were used in determining the benefit obligations and expense:
The discount rates for all plans are developed by plan using spot rates derived from a yield curve of high quality (AA rated or better) fixed income debt securities as of the year-end measurement date to calculate discounted cash flows (the projected benefit obligation) and solving for a single equivalent discount rate that produces the same projected benefit obligation. In determining our benefit obligation, we use the actuarial present value of the vested benefits to which each eligible employee is currently entitled, based on the employee’s expected date of separation or retirement. For our North America plans, the expected long-term rate of return on assets is based on analysis of historical rates of return achieved by equity and non-equity investments and current market characteristics, adjusted for estimated plan expenses and weighted by target asset allocation percentages. As of January 1, 2017, our weighted-average expected long-term rate of return on assets is 4.2%. For our United Kingdom plans, the expected long-term rate of return on assets is based on the expected long-term performance of the underlying investments, adjusted for investment managers' fees. As of January 1, 2017, our weighted-average expected long-term rate of return on assets is 4.6%. The retail price index for the United Kingdom plans is developed using the Bank of England implied retail price inflation curve, which is based on the difference between yields on fixed interest government bonds and index-linked government bonds. For the measurement of the benefit obligation at December 31, 2016 for our primary (U.S.) retiree medical benefit plans, the assumed health care cost trend rates, for pre-65 retirees, start with a 7.0% increase in 2017, followed by a gradual decline in increases to 4.5% for 2024 and thereafter. For post-65 retirees, the assumed health care cost trend rates start with a 8.5% increase in 2017, followed by a gradual decline in increases to 4.5% for 2024 and thereafter. For the measurement of the benefit obligation at December 31, 2015 for our primary (U.S.) retiree medical benefit plans, the assumed health care cost trend rates, for pre-65 retirees, start with a 7.25% increase in 2016, followed by a gradual decline in increases to 4.5% for 2024 and thereafter. For post-65 retirees, the assumed health care cost trend rates start with a 9.0% increase in 2016, followed by a gradual decline in increases to 4.5% for 2024 and thereafter. A one-percentage point change in the assumed health care cost trend rate of our primary (U.S.) retiree medical benefit plans as of December 31, 2016 would have the following effects on our retiree medical benefit plans:
The objectives of the investment policies governing the pension plans are to administer the assets of the plans for the benefit of the participants in compliance with all laws and regulations, and to establish an asset mix that provides for diversification and considers the risk of various different asset classes with the purpose of generating favorable investment returns. The investment policies consider circumstances such as participant demographics, time horizon to retirement and liquidity needs, and provide guidelines for asset allocation, planning horizon, general portfolio issues and investment manager evaluation criteria. The investment strategies for the plans, including target asset allocations and investment vehicles, are subject to change within the guidelines of the policies. The target asset allocation for our U.S. pension plan is 80% non-equity and 20% equity, which has been determined based on analysis of actual historical rates of return and plan needs and circumstances. The equity investments are tailored to exceed the growth of the benefit obligation and are a combination of U.S. and non-U.S. total stock market index mutual funds. The non-equity investments consist primarily of investments in debt securities and money market instruments that are selected based on investment quality and duration to mitigate volatility of the funded status and annual required contributions. The non-equity investments have a duration profile that is similar to the benefit obligation in order to mitigate the impact of interest rate changes on the funded status. This investment strategy is achieved through the use of mutual funds and individual securities. The target asset allocation for the CF Canadian plan is 60% non-equity and 40% equity, and for the Terra Canadian plan is 75% non-equity and 25% equity. The equity investments are passively managed portfolios that diversify assets across multiple securities, economic sectors and countries. The non-equity investments are high quality passively managed portfolios that diversify assets across economic sectors, countries and maturity spectrums. This investment strategy is achieved through the use of mutual funds. The pension assets in the United Kingdom plans are each administered by a Board of Trustees consisting of employer nominated trustees, member nominated trustees and an independent trustee. Trustees may be appointed or removed by CF Fertilisers UK, provided CF Fertilisers UK fulfills its obligation to have at least one third of the Board of Trustees as member nominated. It is the responsibility of the trustees to ensure prudent management and investment of the assets in the plans. The trustees meet on a quarterly basis to review and discuss fund performance and other administrative matters. The trustees’ investment objectives are to hold assets that will achieve returns in excess of expected returns used in the valuation of each plan’s liability without exposing the plans to unacceptable risk. This is accomplished through the asset allocation strategy of each plan. For both plans, if the asset allocation moves more than plus or minus 5% from the benchmark allocation, the trustees may decide to amend the asset allocation. At a minimum, the trustees review the investment strategy at every triennial actuarial valuation to ensure that the strategy remains consistent with its funding principles. The trustees may review the strategy more frequently if opportunities arise to reduce risk within the investments without jeopardizing the funding position. Assets of the United Kingdom plans are invested in externally managed pooled funds. The target asset allocation for the United Kingdom Terra plan is 55% actively managed target return funds, 30% actively and passively managed bond and gilt funds and 15% actively managed property funds. The target asset allocation for the United Kingdom Kemira plan is 50% actively managed target return funds, 45% actively and passively managed bond and gilt funds and 5% in an actively managed property fund. The target return funds diversify assets across multiple asset classes (which may include, among others, traditional equities and bonds) and may use derivatives. The bond and gilt funds generally invest in fixed income debt securities including government bonds, gilts, high yield and emerging market bonds, and investment grade corporate bonds and may use derivatives. The property funds are invested predominately in freehold and leasehold property. The fair values of our pension plan assets as of December 31, 2016 and 2015, by major asset class, are as follows:
_______________________________________________________________________________
We have defined contribution plans covering substantially all employees in North America and the United Kingdom. In North America, depending on the specific provisions of each plan, qualified employees receive company contributions based on a percentage of base salary, matching of employee contributions up to specified limits, or a combination of both. Qualified employees in the United Kingdom receive company contributions based on a percentage of base salary that are greater than employee contributions up to specified limits. In 2016, 2015 and 2014, we recognized expense related to company contributions to the defined contribution plans of $16 million, $14 million, and $12 million, respectively. In addition to our qualified defined benefit pension plans, we also maintain certain nonqualified supplemental pension plans for highly compensated employees as defined under federal law. The amounts recognized in accrued expenses and other liabilities in our consolidated balance sheets for these plans were $3 million and $17 million as of December 31, 2016 and $3 million and $19 million as of December 31, 2015, respectively. We recognized expense for these plans of $3 million, $2 million and $5 million in 2016, 2015 and 2014, respectively. The expense recognized in 2016 and 2014 includes settlement charges of $1 million and $3 million, respectively. |
Financing Agreements |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Agreements | Financing Agreements Revolving Credit Agreement We have a senior secured revolving credit agreement (as amended, including by an amendment effective July 29, 2016 (the July 2016 Credit Agreement Amendment) and an amendment entered into on October 31, 2016 and effective November 21, 2016 (the November 2016 Credit Agreement Amendment), the Revolving Credit Agreement) providing for a revolving credit facility of up to $750 million (reflecting a reduction from $1.5 billion as effected by the November 2016 Credit Agreement Amendment) with a maturity of September 18, 2020. The Revolving Credit Agreement includes a letter of credit sub-limit of $125 million. Borrowings under the Revolving Credit Agreement may be used for working capital and general corporate purposes. CF Industries may designate as borrowers one or more wholly owned subsidiaries that are organized in the United States or any state thereof or the District of Columbia. Borrowings under the Revolving Credit Agreement may be denominated in dollars, Canadian dollars, euros and British pounds, and bear interest at a per annum rate equal to an applicable eurocurrency rate or base rate plus, in either case, a specified margin, and the borrowers are required to pay an undrawn commitment fee on the undrawn portion of the commitments under the Revolving Credit Agreement and customary letter of credit fees. The specified margin and the amount of the commitment fee depend on CF Holdings’ credit rating at the time. The borrowers and guarantors under the Revolving Credit Agreement, which are currently comprised of CF Holdings, CF Industries and CF Holdings’ wholly owned subsidiaries CF Industries Enterprises, Inc. (CFE) and CF Industries Sales, LLC (CFS), are referred to together herein as the Loan Parties. CF Holdings and CF Industries guaranteed the obligations of the Loan Parties under the Revolving Credit Agreement prior to the effectiveness of the November 2016 Credit Agreement Amendment, and, upon the effectiveness of the November 2016 Credit Agreement Amendment, CFE and CFS also became guarantors of the obligations of the Loan Parties under the Revolving Credit Agreement. Subject to specified exceptions, the Revolving Credit Agreement requires that each direct or indirect domestic subsidiary of CF Holdings that guarantees debt for borrowed money of any Loan Party in excess of $150 million become a guarantor under the Revolving Credit Agreement. Subject to specified exceptions, the Revolving Credit Agreement requires a grant of a first priority security interest in substantially all of the assets of the Loan Parties, including a pledge by CFS of its equity interests in CF Industries Nitrogen, LLC (CFN) and mortgages over certain material fee-owned domestic real properties, to secure the obligations of the Loan Parties thereunder. In addition to the obligations under the Revolving Credit Agreement, the Loan Parties also guarantee the obligations under any (i) letter of credit facilities, letter of credit reimbursement agreements, letters of credit, letters of guaranty, surety bonds or similar arrangements in an aggregate amount up to $300 million and (ii) interest rate or other hedging arrangements, in each case between CF Holdings or certain of its subsidiaries, on the one hand, and any person that is a lender or the administrative agent under the Revolving Credit Agreement or an affiliate of such person, on the other hand, that are designated by CF Industries as Secured Bilateral LC Facilities or Secured Swap Agreements (each as defined in the Revolving Credit Agreement), as applicable, pursuant to the terms of the Revolving Credit Agreement (such additional obligations, the Additional Guaranteed Obligations). Obligations under Secured Bilateral LC Facilities in an aggregate amount up to $300 million and obligations under Secured Swap Agreements are secured by the same security interest that secures the obligations under the Revolving Credit Agreement. The Revolving Credit Agreement contains representations and warranties and affirmative and negative covenants customary for a financing of this type. Prior to the effectiveness of the November 2016 Credit Agreement Amendment, the Revolving Credit Agreement limited the ability of non-guarantor subsidiaries of CF Holdings to incur indebtedness and limited the ability of CF Holdings and its subsidiaries to grant liens, merge or consolidate with other entities and sell, lease or transfer all or substantially all of the assets of CF Holdings and its subsidiaries to another entity, in each case, subject to specified exceptions. The November 2016 Credit Agreement Amendment modified the negative covenants in the Revolving Credit Agreement to limit further the ability of CF Holdings and its subsidiaries to grant liens and add limitations on the ability of CF Holdings and its subsidiaries to incur debt, pay dividends, voluntarily prepay certain debt, make investments and dispose of assets, in each case, subject to specified exceptions (such further and additional limitations, the Additional Negative Covenants). The financial covenants applicable to CF Holdings and its subsidiaries in the Revolving Credit Agreement (the New Financial Covenants):
As of December 31, 2016, we were in compliance with all covenants under the Revolving Credit Agreement. Under the Revolving Credit Agreement, if on any date certain conditions were met, including (i) an absence of an event of default under the Revolving Credit Agreement, (ii) the receipt of an investment grade corporate rating for CF Holdings from two of three selected ratings agencies and (iii) the ratio of CF Holdings’ total net debt to EBITDA for the period of four consecutive fiscal quarters most recently ended being less than 3.75:1.00, CF Industries would be able to, at its option, choose to (w) suspend the Additional Negative Covenants, (x) replace the New Financial Covenants with covenants requiring the ratio of total net debt to EBITDA for the period of four fiscal consecutive quarters most recently ended to be less than or equal to 3.75:1.00 and the ratio of EBITDA for the period of four consecutive fiscal quarters most recently ended to consolidated interest expense for the period of four consecutive fiscal quarters most recently ended to be not less than 2.75:1.00, (y) release the collateral securing the obligations under the Revolving Credit Agreement and (z) release the guarantees supporting, and the collateral securing, the Secured Bilateral LC Facilities and the Secured Swap Agreements. Such a choice by CF Industries would commence a "Covenant Suspension Period" that would expire upon the Company's no longer having an investment grade corporate rating from two of three selected rating agencies. Upon the expiration of a Covenant Suspension Period, the Additional Negative Covenants and the New Financial Covenants would be reinstated, and the Loan Parties party to the Revolving Credit Agreement would be required to guarantee the Additional Guaranteed Obligations and grant a first priority security interest in substantially all of each Loan Party’s assets, including a pledge by CFS of its equity interests in CFN and mortgages over certain material fee-owned domestic real properties, subject to certain exceptions, to secure the obligations under the Revolving Credit Agreement, the Secured Bilateral LC Facilities and the Secured Swap Agreements. The Revolving Credit Agreement contains events of default (with notice requirements and cure periods, as applicable) customary for a financing of this type, including, but not limited to, non-payment of principal, interest or fees; inaccuracy of representations and warranties in any material respect; and failure to comply with specified covenants. Upon the occurrence and during the continuance of an event of default under the Revolving Credit Agreement and after any applicable cure period, subject to specified exceptions, the administrative agent may, and at the request of the requisite lenders is required to, accelerate the loans under the Revolving Credit Agreement or terminate the lenders’ commitments under the Revolving Credit Agreement. As of December 31, 2016, we had excess borrowing capacity under the Revolving Credit Agreement of $695 million (net of outstanding letters of credit of $55 million). There were no borrowings outstanding under the Revolving Credit Agreement as of December 31, 2016 or December 31, 2015. Maximum borrowings outstanding under the Revolving Credit Agreement during the twelve months ended December 31, 2016 were $150 million. The weighted-average annual interest rate of borrowings under the Revolving Credit Agreement during the twelve months ended December 31, 2016 was 1.85%. Maximum borrowings under the Revolving Credit Agreement during the twelve months ended December 31, 2015, were $367 million with a weighted-average annual interest rate of 1.47%. Senior Notes Long-term debt presented on our consolidated balance sheets as of December 31, 2016 and December 31, 2015 consisted of the following Public Senior Notes (unsecured), Senior Secured Notes and Private Senior Notes (unsecured):
_______________________________________________________________________________
Public Senior Notes Under the indentures (including the applicable supplemental indentures) governing the senior notes due 2018, 2020, 2023, 2034, 2043 and 2044 identified in the table above (the Public Senior Notes), each series of Public Senior Notes is guaranteed by CF Holdings. Interest on the Public Senior Notes is payable semiannually, and the Public Senior Notes are redeemable at our option, in whole at any time or in part from time to time, at specified make-whole redemption prices. The indentures governing the Public Senior Notes contain customary events of default (including cross-default triggered by acceleration of, or a principal payment default that is not cured within an applicable grace period under, other debt having a principal amount of $150 million or more) and covenants that limit, among other things, the ability of CF Holdings and its subsidiaries, including CF Industries, to incur liens on certain properties to secure debt. If a Change of Control occurs together with a Ratings Downgrade (as both terms are defined under the indentures governing the Public Senior Notes), CF Industries would be required to offer to repurchase each series of Public Senior Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest. In addition, in the event that a subsidiary of CF Holdings, other than CF Industries, becomes a borrower or a guarantor under the Revolving Credit Agreement (or any renewal, replacement or refinancing thereof), such subsidiary would be required to become a guarantor of the Public Senior Notes, provided that such requirement will no longer apply with respect to the Public Senior Notes due 2023, 2034, 2043 and 2044 following the repayment of the Public Senior Notes due 2018 and 2020 or the subsidiaries of ours, other than CF Industries, otherwise becoming no longer subject to such a requirement to guarantee the Public Senior Notes due 2018 and 2020. On November 21, 2016, in connection with the effectiveness of the November 2016 Credit Agreement Amendment, CFE and CFS became subsidiary guarantors of the Public Senior Notes. Senior Secured Notes On November 21, 2016, CF Industries issued $500 million aggregate principal amount of 3.400% senior secured notes due 2021 (the 2021 Notes) and $750 million aggregate principal amount of 4.500% senior secured notes due 2026 (the 2026 Notes, and together with the 2021 Notes, the Senior Secured Notes). The net proceeds, after deducting discounts and offering expenses, from the issuance and sale of the Notes were approximately $1.23 billion. CF Industries used approximately $1.18 billion of the net proceeds for the prepayment (including payment of a make-whole amount of approximately $170 million and accrued interest) in full of the outstanding $1.0 billion aggregate principal amount of the Private Senior Notes. See "—Private Senior Notes," below. The Company intends that the remainder of the net proceeds be used for general corporate purposes. Interest on the Senior Secured Notes is payable semiannually on December 1 and June 1 beginning on June 1, 2017, and the Senior Secured Notes are redeemable at our option, in whole at any time or in part from time to time, at specified make-whole redemption prices. Under the terms of the applicable indenture, the Senior Secured Notes of each series are fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by CF Holdings and each current and future domestic subsidiary of CF Holdings (other than CF Industries) that from time to time is a borrower, or guarantees indebtedness, under the Revolving Credit Agreement. The requirement for any subsidiary of CF Holdings to guarantee the Senior Secured Notes of a series will apply only until, and the subsidiary guarantees of the Senior Secured Notes of a series will be automatically released upon, the latest to occur of (a) CF Holdings having an investment grade corporate rating, with a stable or better outlook, from two of three selected ratings agencies and there being no default or event of default under the applicable Indenture, (b) the retirement, discharge or legal or covenant defeasance of, or satisfaction and discharge of the supplemental indenture governing, the Public Senior Notes due 2018 or the subsidiaries of CF Holdings (other than CF Industries) otherwise becoming no longer subject to the requirement, described in the second paragraph under "—Public Senior Notes," above, to guarantee the Public Senior Notes due 2018 and (c) the retirement, discharge or legal or covenant defeasance of, or satisfaction and discharge of the supplemental indenture governing, the Public Senior Notes due 2020 or the subsidiaries of CF Holdings (other than CF Industries) otherwise becoming no longer subject to the requirement, described in the second paragraph under "—Public Senior Notes," above, to guarantee the Public Senior Notes due 2020. In accordance with the applicable indenture, CFE and CFS, in addition to CF Holdings, guaranteed the Senior Secured Notes of each series upon the initial issuance of the Senior Secured Notes. Subject to certain exceptions, the obligations under each series of Senior Secured Notes and each guarantor’s related guarantee are secured by a first priority security interest in substantially all of the assets of CF Industries, CF Holdings and the subsidiary guarantors, including a pledge by CFS of its equity interests in CFN and mortgages over certain material fee-owned domestic real properties (the Collateral). The obligations under the Revolving Credit Agreement, together with certain letter of credit, hedging and similar obligations and future pari passu secured indebtedness, will be secured by the Collateral on a pari passu basis with the Senior Secured Notes. The liens on the Collateral securing the obligations under the Senior Secured Notes of a series and the related guarantees will be automatically released and the covenant under the applicable indenture limiting dispositions of Collateral will no longer apply if on any date after the initial issuance of the Senior Secured Notes CF Holdings has an investment grade corporate rating, with a stable or better outlook, from two of three selected ratings agencies and there is no default or event of default under the applicable indenture. Under each of the indentures governing the Senior Secured Notes, specified changes of control involving CF Holdings or CF Industries, when accompanied by a ratings downgrade, as defined with respect to the applicable series of Senior Secured Notes, constitute change of control repurchase events. Upon the occurrence of a change of control repurchase event with respect to the 2021 Notes or the 2026 Notes, as applicable, unless CF Industries has exercised its option to redeem such Senior Secured Notes, CF Industries will be required to offer to repurchase them at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the date of repurchase. The indentures governing the Senior Secured Notes contain covenants that limit, among other things, the ability of CF Holdings and its subsidiaries, including CF Industries, to incur liens on certain assets to secure debt, to engage in sale and leaseback transactions, to sell or transfer Collateral, to merge or consolidate with other entities and to sell, lease or transfer all or substantially all of the assets of CF Holdings and its subsidiaries to another entity. Each of the indentures governing the Senior Secured Notes provides for customary events of default, which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest on the applicable Senior Secured Notes; failure to comply with other covenants or agreements under the indenture; certain defaults on other indebtedness; the failure of CF Holdings' or certain subsidiaries’ guarantees of the applicable Senior Secured Notes to be enforceable; lack of validity or perfection of any lien securing the obligations under the Senior Secured Notes and the guarantees with respect to Collateral having an aggregate fair market value equal to or greater than a specified amount; and specified events of bankruptcy or insolvency. Under each indenture governing the Senior Secured Notes, in the case of an event of default arising from one of the specified events of bankruptcy or insolvency, the applicable Senior Secured Notes would become due and payable immediately, and, in the case of any other event of default (other than an event of default related to CF Industries' and CF Holdings' reporting obligations), the trustee or the holders of at least 25% in aggregate principal amount of the applicable Senior Secured Notes then outstanding may declare all of such Senior Secured Notes to be due and payable immediately. Private Senior Notes The senior notes due 2022, 2025 and 2027 (the Private Senior Notes), issued by CF Industries on September 24, 2015, were governed by the terms of a note purchase agreement (as amended, including by an amendment effective September 7, 2016, the Note Purchase Agreement). The Private Senior Notes were guaranteed by CF Holdings. All obligations under the Note Purchase Agreement were unsecured. On November 21, 2016, we prepaid in full the outstanding $1.0 billion aggregate principal amount of our Private Senior Notes. The prepayment of $1.18 billion included the payment of a make-whole amount of approximately $170 million and accrued interest. Loss on debt extinguishment of $167 million on our consolidated statement of operations excludes $3 million of the make-whole payment, which was accounted for as a modification and recognized on our consolidated balance sheet as deferred financing fees, a reduction of long-term debt, and is being amortized using the effective interest rate method over the term of the Senior Secured Notes. Bridge Credit Agreement On September 18, 2015, in connection with our proposed combination with certain businesses of OCI (see Note 4—Acquisitions and Divestitures for additional information), CF Holdings and CF Industries entered into a senior unsecured 364-Day Bridge Credit Agreement (as amended, the Bridge Credit Agreement). Upon the termination of the Combination Agreement on May 22, 2016, the lenders’ commitments under the Bridge Credit Agreement terminated automatically. There were no borrowings under the Bridge Credit Agreement. See Note 13—Interest Expense for additional information. |
Interest Expense |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense | Interest Expense Details of interest expense are as follows:
|
Other Operating-Net |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating-Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating-Net | Other Operating—Net Details of other operating—net are as follows:
|
Noncontrolling Interest |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest | Noncontrolling Interests A reconciliation of the beginning and ending balances of noncontrolling interests and distributions payable to the noncontrolling interests on our consolidated balance sheets is provided below.
CF Industries Nitrogen, LLC (CFN) We commenced a strategic venture with CHS on February 1, 2016, at which time CHS purchased a minority equity interest in CFN for $2.8 billion. For financial reporting purposes, the assets, liabilities and earnings of the strategic venture are consolidated into our financial statements. CHS' interest in the strategic venture is recorded in noncontrolling interests in our consolidated financial statements. On February 1, 2016, CHS also began receiving deliveries pursuant to a supply agreement under which CHS has the right to purchase annually from CFN up to approximately 1.1 million tons of granular urea and 580,000 tons of UAN at market prices. As a result of its minority equity interest in CFN, CHS is entitled to semi-annual cash distributions from CFN. We are also entitled to semi-annual cash distributions from CFN. The amounts of distributions from CFN to us and CHS are based generally on the profitability of CFN and determined based on the volume of granular urea and UAN sold by CFN to us and CHS pursuant to supply agreements, less a formula driven amount based primarily on the cost of natural gas used to produce the granular urea and UAN, and adjusted for the allocation of items such as operational efficiencies and overhead amounts. Additionally, under the terms of the strategic venture, if our credit rating is reduced below certain levels by two of three specified credit rating agencies, we are required to make a non-refundable yearly payment of $5 million to CHS. The payment would continue on a yearly basis until the earlier of the date that our credit rating is upgraded to or above certain levels by two of the three specified credit rating agencies or February 1, 2026. On February 1, 2016, we recognized this term of the strategic venture as an embedded derivative and its value of $8 million was included in other liabilities on our consolidated balance sheet. During 2016, we recorded adjustments of $23 million to the value of the embedded derivative liability to reflect our credit evaluations. In the fourth quarter of 2016, as a result of the reduction in our credit rating, we made a $5 million payment to CHS. See Note 9—Fair Value Measurements for additional information. In the first quarter of 2017, the CFN Board of Managers approved semi-annual distribution payments for the distribution period ended December 31, 2016 in accordance with the Second Amended and Restated Limited Liability Company Agreement of CFN. On January 31, 2017, CFN distributed $48 million to CHS for the distribution period ended December 31, 2016. Terra Nitrogen Company, L.P. (TNCLP) TNCLP is a master limited partnership (MLP) that owns a nitrogen fertilizer manufacturing facility in Verdigris, Oklahoma. We own approximately 75.3% of TNCLP through general and limited partnership interests. Outside investors own the remaining approximately 24.7% of the limited partnership. For financial reporting purposes, the assets, liabilities and earnings of the partnership are consolidated into our financial statements. The outside investors' limited partnership interests in the partnership are recorded in noncontrolling interests in our consolidated financial statements. The noncontrolling interest represents the noncontrolling unitholders' interest in the earnings and equity of TNCLP. Affiliates of CF Industries are required to purchase all of TNCLP's fertilizer products at market prices as defined in the Amendment to the General and Administrative Services and Product Offtake Agreement, dated September 28, 2010. TNCLP makes cash distributions to the general and limited partners based on formulas defined within its First Amended and Restated Agreement of Limited Partnership (as amended, the TNCLP Agreement of Limited Partnership). Cash available for distribution (Available Cash) is defined in the TNCLP Agreement of Limited Partnership generally as all cash receipts less all cash disbursements, less certain reserves (including reserves for future operating and capital needs) established as the general partner determines in its reasonable discretion to be necessary or appropriate. Changes in working capital affect Available Cash, as increases in the amount of cash invested in working capital items (such as increases in inventory and decreases in accounts payable) reduce Available Cash, while declines in the amount of cash invested in working capital items increase Available Cash. Cash distributions to the limited partners and general partner vary depending on the extent to which the cumulative distributions exceed certain target threshold levels set forth in the TNCLP Agreement of Limited Partnership. In each quarter of 2016, 2015 and 2014, the minimum quarterly distributions requirements under the TNCLP Agreement of Limited Partnership were satisfied, which entitled Terra Nitrogen GP Inc. (TNGP), the general partner of TNCLP and an indirect wholly owned subsidiary of CF Holdings, to receive incentive distributions on its general partner interests (in addition to minimum quarterly distributions). TNGP has assigned its right to receive such incentive distributions to an affiliate of TNGP that is also an indirect wholly owned subsidiary of CF Holdings. The earnings attributed to our general partner interest in excess of the threshold levels for the years ended December 31, 2016, 2015 and 2014 were $65 million, $116 million and $139 million, respectively. As of December 31, 2016, TNGP and its affiliates owned approximately 75.1% of TNCLP's outstanding common units and all of TNCLP's Class B common units. When not more than 25% of TNCLP's issued and outstanding common units are held by persons other than TNGP and its affiliates (collectively, non-affiliated persons), TNCLP, at TNGP's sole discretion, may call, or assign to TNGP or its affiliates, TNCLP's right to acquire all such outstanding common units held by non-affiliated persons. If TNGP elects to acquire all outstanding common units, TNCLP is required to give at least 30 but not more than 60 days' notice of TNCLP's decision to purchase the outstanding common units. The purchase price per unit will be the greater of (1) the average of the previous 20 trading days' closing prices as of the date five days before the purchase is announced or (2) the highest price paid by TNGP or any of its affiliates for any unit within the 90 days preceding the date the purchase is announced. Internal Revenue Service Regulation Impacting Master Limited Partnerships Currently, no federal income taxes are paid by TNCLP due to its MLP status. Partnerships are generally not subject to federal income tax, although publicly-traded partnerships (such as TNCLP) are treated as corporations for federal income tax purposes (and therefore are subject to federal income tax), unless at least 90% of the partnership's gross income is "qualifying income" as defined in Section 7704 of the Internal Revenue Code of 1986, as amended (the Code), and the partnership is not required to register as an investment company under the Investment Company Act of 1940. Any change in the tax treatment of income from fertilizer-related activities as qualifying income could cause TNCLP to be treated as a corporation for federal income tax purposes. If TNCLP were taxed as a corporation, under current law, due to its current ownership interest, CF Industries would qualify for a partial dividends received deduction on the dividends received from TNCLP. Therefore, we would not expect a change in the tax treatment of TNCLP to have a material impact on the consolidated financial condition or results of operations of CF Holdings. On January 19, 2017, the Internal Revenue Service (IRS) issued final regulations on the types of income and activities that constitute or generate qualifying income of a MLP. For calendar year MLPs, the effective date of the regulations is January 1, 2018. The regulations have the effect of limiting the types of income and activities that qualify under the MLP rules, subject to certain transition provisions. The regulations define the activities that generate qualifying income from certain processing or refining and transportation activities with respect to any mineral or natural resource (including fertilizer) as activities that generate qualifying income, but the regulations reserve on specifics regarding fertilizer-related activities. We continue to monitor these IRS regulatory activities. |
Derivative Financial Instruments |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We use derivative financial instruments to reduce our exposure to changes in commodity prices and foreign currency exchange rates. Commodity Price Risk Management Natural gas is the largest and most volatile component of the manufacturing cost for nitrogen-based products. We manage the risk of changes in natural gas prices primarily through the use of derivative financial instruments. The derivatives that we use for this purpose are primarily natural gas fixed price swaps and natural gas options traded in the OTC markets. These natural gas derivatives settle using primarily a NYMEX futures price index, which represents the basis for fair value at any given time. We enter into natural gas derivative contracts with respect to natural gas to be consumed by us in the future, and settlements of those derivative contracts are scheduled to coincide with our anticipated purchases of natural gas used to manufacture nitrogen products during those future periods. We use natural gas derivatives as an economic hedge of natural gas price risk, but without the application of hedge accounting. As a result, changes in fair value of these contracts are recognized in earnings. As of December 31, 2016, we have natural gas derivative contracts covering periods through the end of 2018. As of December 31, 2016 and 2015, we had open natural gas derivative contracts for 183.0 million MMBtus and 431.5 million MMBtus, respectively. For the year ended December 31, 2016, we used derivatives to cover approximately 84% of our natural gas consumption. Foreign Currency Exchange Rates A portion of the costs for our capacity expansion projects at our Donaldsonville, Louisiana complex and Port Neal, Iowa complex were euro-denominated. In order to manage our exposure to changes in the euro to U.S. dollar currency exchange rates, we hedged our projected euro-denominated payments through the end of 2016 using foreign currency forward contracts. As of December 31, 2015, the notional amount of our open foreign currency derivatives was €89 million. None of these open foreign currency derivatives were designated as hedging instruments for accounting purposes. All of these foreign currency derivatives settled in 2016. As of December 31, 2016, accumulated other comprehensive loss (AOCL) includes $7 million of pre-tax gains related to the foreign currency derivatives that were originally designated as cash flow hedges. The hedges were de-designated as of December 31, 2013. The remaining balance in AOCL is being reclassified into income over the depreciable lives of the property, plant and equipment associated with the capacity expansion projects. The amounts reclassified into income from AOCL during the years ended December 31, 2016, 2015 and 2014 were zero, zero and $3 million, respectively, and are included in other operating—net in our consolidated statements of operations. We expect that the amounts to be reclassified within the next twelve months will be insignificant. During the years ended December 31, 2016, 2015, and 2014, none of our derivatives were designated as hedges and no gain or loss was recognized in income or AOCL related to derivatives designated as cash flow hedges except for the amounts recognized in income, which were reclassified from AOCL, as discussed above. The effect of derivatives in our consolidated statements of operations is shown in the table below:
The fair values of derivatives on our consolidated balance sheets are shown below. As of December 31, 2016 and 2015, none of our derivative instruments were designated as hedging instruments. See Note 9—Fair Value Measurements for additional information on derivative fair values.
The counterparties to our derivative contracts are multinational commercial banks, major financial institutions and large energy companies. Our derivatives are executed with several counterparties, generally under International Swaps and Derivatives Association (ISDA) agreements. The ISDA agreements are master netting arrangements commonly used for OTC derivatives that mitigate exposure to counterparty credit risk, in part, by creating contractual rights of netting and setoff, the specifics of which vary from agreement to agreement. These rights are described further below:
Most of our ISDA agreements contain credit-risk-related contingent features such as cross default provisions and credit support thresholds. In the event of certain defaults or a credit ratings downgrade, our counterparty may request early termination and net settlement of certain derivative trades or may require us to collateralize derivatives in a net liability position. The Revolving Credit Agreement, at any time when it is secured, provides a cross collateral feature for those of our derivatives that are with counterparties that are party to, or affiliates of parties to, the Revolving Credit Agreement so that no separate collateral would be required for those counterparties in connection with such derivatives. In the event the Revolving Credit Agreement becomes unsecured, separate collateral could be required in connection with such derivatives. As of December 31, 2016 and 2015, the aggregate fair value of the derivative instruments with credit-risk-related contingent features in net liability positions was zero and $211 million, respectively, which also approximates the fair value of the maximum amount of additional collateral that would need to be posted or assets needed to settle the obligations if the credit-risk-related contingent features were triggered at the reporting dates. As of December 31, 2016 and 2015, we had no cash collateral on deposit with counterparties for derivative contracts. The credit support documents executed in connection with certain of our ISDA agreements generally provide us and our counterparties the right to set off collateral against amounts owing under the ISDA agreements upon the occurrence of a default or a specified termination event. The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of December 31, 2016 and 2015:
_______________________________________________________________________________
We do not believe the contractually allowed netting, close-out netting or setoff of amounts owed to, or due from, the counterparties to our ISDA agreements would have a material effect on our financial position. |
Supplemental Balance Sheet Data |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Data | Supplemental Balance Sheet Data Accounts Receivable—Net Accounts receivable—net consist of the following:
Trade accounts receivable is net of an allowance for doubtful accounts of $3 million as of December 31, 2016 and 2015. Inventories Inventories consist of the following:
Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following:
Capacity expansion project costs include the capital expenditures invested in the capacity expansion projects. Payroll and employee-related costs include accrued salaries and wages, vacation, incentive plans and payroll taxes. Accrued interest includes interest payable on our outstanding senior notes. See Note 12—Financing Agreements and Note 13—Interest Expense for additional information. Other includes accrued utilities, property taxes, sales incentives and other credits, accrued litigation settlement costs, accrued transaction costs, maintenance and professional services. Other Current Liabilities As of December 31, 2016, other current liabilities of $5 million consists of the current portion of the unrealized loss on the embedded derivative liability related to our strategic venture with CHS. See Note 9—Fair Value Measurements and Note 17—Noncontrolling Interests for additional information. As of December 31, 2015, other current liabilities consists of unrealized losses on natural gas and foreign currency derivatives amounting to $130 million. See Note 15—Derivative Financial Instruments for additional information. Other liabilities consist of the following:
Benefit plans and deferred compensation include liabilities for pensions, retiree medical benefits, and the noncurrent portion of incentive plans. See Note 11—Pension and Other Postretirement Benefits for additional information. As of December 31, 2015, capacity expansion project costs consisted of amounts due to contractors that would be paid upon completion of the project in accordance with the related contract terms. The capacity expansion projects were completed in 2016; therefore, amounts accrued as of December 31, 2016 are included in accounts payable and accrued expenses. |
Stockholders' Equity |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity Common Stock Our Board of Directors (the Board) has authorized certain programs to repurchase shares of our common stock. Each of these programs has permitted repurchases to be made from time to time in the open market, through privately-negotiated transactions, through block transactions or otherwise. Our management has determined the manner, timing and amount of repurchases under these programs based on the evaluation of market conditions, stock price and other factors. In the third quarter of 2012, the Board authorized a program to repurchase up to $3 billion of the common stock of CF Holdings through December 31, 2016 (the 2012 Program). The repurchases under the 2012 Program were completed in the second quarter of 2014. On August 6, 2014, the Board authorized a program to repurchase up to $1 billion of the common stock of CF Holdings through December 31, 2016 (the 2014 Program). The following table summarizes the share repurchases under the 2014 Program and the 2012 Program.
In 2016, no shares were repurchased under the 2014 Program. The 2014 Program expired on December 31, 2016 with the $100 million of repurchase authorization remaining. As of December 31, 2016 and 2015, the amount of shares repurchased that was accrued but unpaid was zero. During 2016 and 2015, we retired 2.4 million shares and 10.7 million shares of repurchased stock, respectively. The retired shares were returned to the status of authorized but unissued shares. As part of the retirements, we reduced our treasury stock, paid-in capital, and retained earnings balances for 2016 by $150 million, $14 million, and $136 million, respectively, and for 2015 by $597 million, $62 million, and $535 million, respectively. As of December 31, 2016 and 2015, we held in treasury approximately 28 thousand shares and 2.4 million shares of repurchased stock, respectively. Changes in common shares outstanding are as follows:
_______________________________________________________________________________
Preferred Stock CF Holdings is authorized to issue 50 million shares of $0.01 par value preferred stock. Our Second Amended and Restated Certificate of Incorporation, as amended, authorizes the Board, without any further stockholder action or approval, to issue these shares in one or more classes or series, and (except in the case of our Series A Junior Participating Preferred Stock, 500,000 shares of which are authorized and the terms of which were specified in the original certificate of incorporation of CF Holdings) to fix the rights, preferences and privileges of the shares of each wholly unissued class or series and any of its qualifications, limitations or restrictions. In connection with the Plan (as defined below), 500,000 shares of preferred stock have been designated as Series B Junior Participating Preferred Stock. The Series A Junior Participating Preferred Stock had been established in CF Holdings’ original certificate of incorporation in connection with our former stockholder rights plan that expired in 2015. No shares of preferred stock have been issued. Tax Benefits Preservation Plan On September 6, 2016, CF Holdings entered into a Tax Benefits Preservation Plan (the Plan) with Computershare Trust Company, N.A., as rights agent. The Plan is intended to help protect our tax net operating losses and certain other tax assets (the Tax Benefits) by deterring any person from becoming a "5-percent shareholder" (as defined in Section 382 of the Internal Revenue Code of 1986, as amended) (a 5% Shareholder). Under the Plan, each share of common stock has attached to it one right. Each right entitles the holder to purchase one one-thousandth of a share of our preferred stock designated as Series B Junior Participating Preferred Stock at a purchase price of $100, subject to adjustment. Rights will only be exercisable under the limited circumstances specified in the Plan when there has been a distribution of the rights and such rights are no longer redeemable by CF Holdings. A distribution of the rights would occur upon the earlier of (i) 10 business days following a public announcement that a person or group of affiliated or associated persons has become a 5% Shareholder (subject to certain exceptions described in the Plan) and (ii) 10 business days (or such later date as the Board shall determine) following the commencement of a tender offer or exchange offer that would result in a person or group of affiliated or associated persons becoming a 5% Shareholder (subject to certain exceptions described in the Plan). The rights will expire at the earliest of (i) 5:00 P.M. (New York City time) on September 5, 2017, or such later date and time (but not later than 5:00 P.M. (New York City time) on September 5, 2019) as may be determined by the Board and approved by the stockholders of CF Holdings by a vote of the majority of the votes cast by the holders of shares entitled to vote thereon at a meeting of the stockholders of CF Holdings prior to 5:00 P.M. (New York City time) on September 5, 2017, (ii) the time at which the rights are redeemed or exchanged as provided in the Plan, (iii) the time at which the Board determines that the Plan is no longer necessary or desirable for the preservation of Tax Benefits, and (iv) the close of business on the first day of a taxable year of CF Holdings to which the Board determines that no Tax Benefits may be carried forward. In the event that a person or group of affiliated or associated persons becomes a 5% Shareholder (subject to certain exceptions described in the Plan), each holder of a right, other than such person, any member of such group or related person, all of whose rights will be null and void, will thereafter have the right to receive, upon exercise, common stock having a value equal to two times the exercise price of the right. If we are involved in certain merger or other business combination transactions, each right will entitle its holder to receive, after exercise, a number of shares of the acquiring or surviving company's common stock having a value equal to two times the exercise price of the right. The description and terms of the rights are set forth in the Plan. Accumulated Other Comprehensive (Loss) Income Changes to accumulated other comprehensive (loss) income (AOCI) and the impact on other comprehensive loss are as follows:
Reclassifications out of AOCI to the consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014 were as follows:
_______________________________________________________________________________
|
Stock-Based Compensation |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation 2014 Equity and Incentive Plan On May 14, 2014, our shareholders approved the CF Industries Holdings, Inc. 2014 Equity and Incentive Plan (the 2014 Equity and Incentive Plan) which replaced the CF Industries Holdings, Inc. 2009 Equity and Incentive Plan. Under the 2014 Equity and Incentive Plan, we may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards (payable in cash or stock) and other stock-based awards to our officers, employees, consultants and independent contractors (including non-employee directors). The purpose of the 2014 Equity and Incentive Plan is to provide an incentive for our employees, officers, consultants and non-employee directors that is aligned with the interests of our stockholders. Share Reserve and Individual Award Limits The maximum number of shares reserved for the grant of awards under the 2014 Equity and Incentive Plan is the sum of (i) 13.9 million and (ii) the number of shares subject to outstanding awards under our predecessor plans to the extent such awards terminate or expire without delivery of shares. For purposes of determining the number of shares of stock available for grant under the 2014 Equity and Incentive Plan, each option or stock appreciation right is counted against the reserve as one share. Each share of stock granted, other than an option or a stock appreciation right, is counted against the reserve as 1.61 shares. If any outstanding award expires or is settled in cash, any unissued shares subject to the award are again available for grant under the 2014 Equity and Incentive Plan. Shares tendered in payment of the exercise price of an option and shares withheld by the Company or otherwise received by the Company to satisfy tax withholding obligations are not available for future grant under the 2014 Equity and Incentive Plan. As of December 31, 2016, we had 11.7 million shares available for future awards under the 2014 Equity and Incentive Plan. The 2014 Equity and Incentive Plan provides that no more than 5.0 million underlying shares may be granted to a participant in any one calendar year. Stock Options Under the 2014 Equity and Incentive Plan and our predecessor plans, we granted to plan participants nonqualified stock options to purchase shares of our common stock. The exercise price of these options is equal to the market price of our common stock on the date of grant. The contractual life of each option is ten years and generally one-third of the options vest on each of the first three anniversaries of the date of grant. The fair value of each stock option award is estimated using the Black-Scholes option valuation model. Key assumptions used and resulting grant date fair values are shown in the following table.
The expected volatility of our stock options is based on the combination of the historical volatility of our common stock and implied volatilities of exchange traded options on our common stock. The expected term of options is estimated based on our historical exercise experience, post-vesting employment termination behavior and the contractual term. The risk-free interest rate is based on the U.S. Treasury Strip yield curve in effect at the time of grant for the expected term of the options. A summary of stock option activity during the year ended December 31, 2016 is presented below:
Selected amounts pertaining to stock option exercises are as follows:
The following table summarizes information about stock options outstanding and exercisable as of December 31, 2016:
Restricted Stock Awards, Restricted Stock Units and Performance Share Units The fair value of a restricted stock award (RSA) or an award of restricted stock units (RSU) is equal to the number of shares subject to the award multiplied by the closing market price of our common stock on the date of grant. We estimated the fair value of each performance share unit (PSU) on the date of grant using a Monte Carlo simulation. Awards granted to key employees generally vest three years from the date of grant. The vesting of PSUs is also subject to the attainment of applicable performance goals during the performance period. The RSAs awarded to non-management members of the Board vest the earlier of one year from the date of the grant or the date of the next annual stockholder meeting. During the vesting period, the holders of the RSAs are entitled to dividends and voting rights. During the vesting period, the holders of the RSUs are paid dividend equivalents in cash to the extent we pay cash dividends. PSUs accrue dividend equivalents to the extent we pay cash dividends on our common stock during the performance and vesting period. Upon vesting of the PSUs, holders are paid the accrued dividend equivalents based on the shares of common stock, if any, delivered in settlement of PSUs. Holders of RSUs and PSUs are not entitled to voting rights unless and until the awards have vested. A summary of restricted stock activity during the year ended December 31, 2016 is presented below:
The 2016, 2015 and 2014 weighted-average grant date fair value for RSAs was $27.85, $61.54, and $49.76, for RSUs was $36.00, $61.60, and $51.16, and for PSUs was $40.62, $91.13, and $77.65, respectively. Selected amounts pertaining to restricted stock awards that vested are as follows:
Compensation Cost Compensation cost is recorded primarily in selling, general and administrative expenses. The following table summarizes stock-based compensation costs and related income tax benefits.
As of December 31, 2016, pre-tax unrecognized compensation cost was $12 million for stock options, which will be recognized over a weighted-average period of 1.8 years, $4 million for RSAs and RSUs, which will be recognized over a weighted-average period of 1.7 years, and $3 million for PSUs, which will be recognized over a weighted-average period of 1.8 years. Excess tax benefits realized from the vesting of restricted stock or stock option exercises are recognized as an income tax benefit in our consolidated statements of operations and are required to be reported as an operating cash inflow rather than a reduction of taxes paid. The excess tax benefits in 2016, 2015 and 2014 were zero, $2 million, and $9 million, respectively. |
Contingencies |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation West Fertilizer Co. On April 17, 2013, there was a fire and explosion at the West Fertilizer Co. fertilizer storage and distribution facility in West, Texas. According to published reports, 15 people were killed and approximately 200 people were injured in the incident, and the fire and explosion damaged or destroyed a number of homes and buildings around the facility. Various subsidiaries of CF Industries Holdings, Inc. (the CF Entities) have been named as defendants along with other companies in lawsuits filed in 2013, 2014 and 2015 in the District Court of McLennan County, Texas by the City of West, individual residents of the County and other parties seeking recovery for damages allegedly sustained as a result of the explosion. The cases have been consolidated for discovery and pretrial proceedings in the District Court of McLennan County under the caption "In re: West Explosion Cases." The two-year statute of limitations expired on April 17, 2015. As of that date, over 400 plaintiffs had filed claims, including at least 9 entities, 325 individuals, and 80 insurance companies. Plaintiffs allege various theories of negligence, strict liability, and breach of warranty under Texas law. Although we do not own or operate the facility or directly sell our products to West Fertilizer Co., products that the CF Entities have manufactured and sold to others have been delivered to the facility and may have been stored at the West facility at the time of the incident. The Court granted in part and denied in part the CF Entities' Motions for Summary Judgment in August 2015. Thirty-four cases have been resolved pursuant to confidential settlements fully funded by insurance. The remaining cases are in various stages of discovery and pre-trial proceedings. The next group of cases was reset for trial beginning on April 3, 2017. While we believe we have strong legal and factual defenses and intend to continue defending the CF Entities vigorously in the pending lawsuits, including in any appeals that may follow, we have concluded based on continuing developments in the case that some loss is probable for a subset of the outstanding claims. We have made an accrual for this subset of the outstanding claims, which is not material to the Consolidated Financial Statements. Beyond the amounts accrued, the Company cannot provide a range of reasonably possible loss due to the lack of damages discovery for the remaining claims and the uncertain nature of this litigation, including uncertainties around the potential allocation of responsibility by a jury to other defendants or responsible third parties. The recognition of a potential loss in the future in the West Fertilizer Co. litigation could negatively affect our results in the period of recognition. However, based upon currently available information, including available insurance coverage, we do not believe that this litigation will have a material adverse effect on our consolidated financial position, results of operations or cash flows. Other Litigation From time to time, we are subject to ordinary, routine legal proceedings related to the usual conduct of our business, including proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of our various plants and facilities. Based on the information available as of the date of this filing, we believe that the ultimate outcome of these routine matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. Environmental Louisiana Environmental Matters Clean Air Act—Section 185 Fee Our Donaldsonville nitrogen complex is located in a five-parish region near Baton Rouge, Louisiana that, as of 2005, was designated as being in "severe" nonattainment with respect to the national ambient air quality standard (NAAQS) for ozone (the 1-hour ozone standard) pursuant to the Federal Clean Air Act (the Act). Section 185 of the Act requires states, in their state implementation plans, to levy a fee (Section 185 fee) on major stationary sources (such as the Donaldsonville complex) located in a severe nonattainment area that did not meet the 1-hour ozone standard by November 30, 2005. The fee was to be assessed for each calendar year (beginning in 2006) until the area achieved compliance with the ozone NAAQS. Prior to the imposition of Section 185 fees, the Environmental Protection Agency (EPA) adopted a new ozone standard (the 8-hour ozone standard) and rescinded the 1-hour ozone standard. The Baton Rouge area was designated as a "moderate" nonattainment area with respect to the 8-hour ozone standard. However, because Section 185 fees had never been assessed prior to the rescission of the 1-hour ozone standard (rescinded prior to the November 30, 2005 ozone attainment deadline), the EPA concluded in a 2004 rulemaking implementing the 8-hour ozone standard that the Act did not require states to assess Section 185 fees. As a result, Section 185 fees were not assessed against us and other companies located in the Baton Rouge area. In 2006, the federal D.C. Circuit Court of Appeals rejected the EPA's position and held that Section 185 fees were controls that must be maintained and fees should have been assessed under the Act. In January 2008, the U.S. Supreme Court declined to accept the case for review, making the appellate court's decision final. In July 2011, the EPA approved a revision to Louisiana's air pollution program that eliminated the requirement for Baton Rouge area companies to pay Section 185 fees, based on Baton Rouge's ultimate attainment of the 1-hour standard through permanent and enforceable emissions reductions. The EPA's approval of the Louisiana air program revision became effective on August 8, 2011. However, a recent decision by the federal D.C. Circuit Court of Appeals struck down a similar, but perhaps distinguishable, EPA guidance document regarding alternatives to Section 185 fees. At this time, the viability of EPA's approval of Louisiana's elimination of Section 185 fees is uncertain. Regardless of the approach ultimately adopted by the EPA, we expect that it is likely to be challenged by the environmental community, the states, and/or affected industries. Therefore, the costs associated with compliance with the Act cannot be determined at this time, and we cannot reasonably estimate the impact on our consolidated financial position, results of operations or cash flows. Since 2011, the area has seen significant reductions in ozone levels, attributable to federal and state regulations and community involvement. On December 15, 2016, the EPA re-designated the Greater Baton Rouge Nonattainment Area to attainment with the 2008 8-hour ozone standard. However, on October 26, 2015, the EPA published a more stringent national ambient air quality standard for ozone. The State of Louisiana has recommended to the EPA that Baton Rouge be designated as nonattainment with the 2015 ozone standard. The EPA is supposed to designate areas under the 2015 standard by October 2017. Clean Air Act Information Request On February 26, 2009, we received a letter from the EPA under Section 114 of the Act requesting information and copies of records relating to compliance with New Source Review and New Source Performance Standards at our Donaldsonville facility. We have completed the submittal of all requested information. There has been no further contact from the EPA regarding this matter. Florida Environmental Matters On March 17, 2014, we completed the sale of our phosphate mining and manufacturing business, which was located in Florida, to Mosaic. See Note 4—Acquisitions and Divestitures for additional information. Pursuant to the terms of the definitive agreement executed in October 2013, Mosaic has assumed the following environmental matters and we have agreed to indemnify Mosaic with respect to losses arising out of the matters below, subject to a maximum indemnification cap and the other terms of the definitive agreement. Clean Air Act Notice of Violation We received a Notice of Violation (NOV) from the EPA by letter dated June 16, 2010, alleging that we violated the Prevention of Significant Deterioration (PSD) Clean Air Act regulations relating to certain projects undertaken at the former Plant City, Florida facility's sulfuric acid plants. This NOV further alleges that the actions that are the basis for the alleged PSD violations also resulted in violations of Title V air operating permit regulations. Finally, the NOV alleges that we failed to comply with certain compliance dates established by hazardous air pollutant regulations for phosphoric acid manufacturing plants and phosphate fertilizer production plants. We had several meetings with the EPA with respect to this matter prior to our sale of the phosphate mining and manufacturing business in March 2014. We do not know at this time if this matter will be settled prior to initiation of formal legal action. We cannot estimate the potential penalties, fines or other expenditures, if any, that may result from the Clean Air Act NOV and, therefore, we cannot determine if the ultimate outcome of this matter will have a material impact on our consolidated financial position, results of operations or cash flows. EPCRA/CERCLA Notice of Violation By letter dated July 6, 2010, the EPA issued a NOV to us alleging violations of Section 313 of the Emergency Planning and Community Right-to-Know Act (EPCRA) in connection with the former Plant City facility. EPCRA requires annual reports to be submitted with respect to the use of certain toxic chemicals. The NOV also included an allegation that we violated Section 304 of EPCRA and Section 103 of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) by failing to file a timely notification relating to the release of hydrogen fluoride above applicable reportable quantities. We do not know at this time if this matter will be settled prior to initiation of formal legal action. We do not expect that penalties or fines, if any, that may arise out of the EPCRA/CERCLA matter will have a material impact on our consolidated financial position, results of operations or cash flows. Other CERCLA/Remediation Matters From time to time, we receive notices from governmental agencies or third parties alleging that we are a potentially responsible party at certain cleanup sites under CERCLA or other environmental cleanup laws. In 2011, we received a notice from the Idaho Department of Environmental Quality (IDEQ) that alleged that we were a potentially responsible party for the cleanup of a former phosphate mine site we owned in the late 1950s and early 1960s located in Georgetown Canyon, Idaho. The current owner of the property and a former mining contractor received similar notices for the site. In 2014, we and the current property owner entered into a Consent Order with IDEQ and the U.S. Forest Service to conduct a remedial investigation and feasibility study of the site. In 2015, we and several other parties received a notice that the U.S. Department of the Interior and other trustees intend to undertake a natural resource damage assessment for a group of former phosphate mines in southeast Idaho, including the former Georgetown Canyon mine. We are not able to estimate at this time our potential liability, if any, with respect to the cleanup of the site or a possible claim for natural resource damages. However, based on currently available information, we do not expect the remedial or financial obligations to which we may be subject involving this or other cleanup sites will have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Segment Disclosures |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Disclosures | Segment Disclosures On July 31, 2015, we acquired the remaining 50% equity interest in CF Fertilisers UK not previously owned by us. See Note 4—Acquisitions and Divestitures and Note 8—Equity Method Investments for additional information. CF Fertilisers UK has nitrogen manufacturing complexes located in Ince, United Kingdom, and Billingham, United Kingdom. The Ince complex produces ammonia, AN and NPKs while the Billingham complex produces ammonia and AN. Our reportable segment structure reflects how our chief operating decision maker (CODM), as defined under U.S. GAAP, assesses the performance of our operating segments and makes decisions about resource allocation. In the third quarter of 2015, we changed our reportable segment structure to separate AN from our Other segment as our AN products increased in significance as a result of the CF Fertilisers UK acquisition. Our reportable segments now consist of ammonia, granular urea, UAN, AN, Other, and phosphate. These segments are differentiated by products. Historical financial results have been restated to reflect the new reportable segment structure on a comparable basis. We sold our phosphate mining and manufacturing business on March 17, 2014. See Note 4—Acquisitions and Divestitures for additional information. The phosphate segment reflects the reported results of the phosphate business through March 17, 2014, plus the continuing sales of the phosphate inventory in the distribution network after March 17, 2014. The remaining phosphate inventory was sold in the second quarter of 2014 and reportable results ceased. Upon selling the phosphate business, we began to supply Mosaic with ammonia produced by our PLNL joint venture. The contract to supply ammonia to Mosaic from our PLNL joint venture represents the continuation of a supply practice that previously existed between our former phosphate mining and manufacturing business and other operations of the Company. Prior to March 17, 2014, PLNL sold ammonia to us for use in the phosphate business and the cost was included in our production costs in our phosphate segment. Subsequent to the sale of the phosphate business, we now sell the PLNL-sourced ammonia to Mosaic. The revenue from these sales to Mosaic and costs to purchase the ammonia from PLNL are now included in our ammonia segment. Our 50% share of the operating results of our PLNL joint venture continues to be included in our equity in earnings of operating affiliates in our consolidated statements of operations. Because of the significance of this continuing supply practice, in accordance with U.S. GAAP, the phosphate mining and manufacturing business is not reported as discontinued operations in our consolidated statements of operations. Our management uses gross margin to evaluate segment performance and allocate resources. Total other operating costs and expenses (consisting of selling, general and administrative expenses and other operating—net) and non-operating expenses (interest and income taxes) are centrally managed and are not included in the measurement of segment profitability reviewed by management. Our assets, with the exception of goodwill, are not monitored by or reported to our CODM by segment; therefore, we do not present total assets by segment. Goodwill by segment is presented in Note 7—Goodwill and Other Intangible Assets. Segment data for sales, cost of sales and gross margin for 2016, 2015 and 2014 are presented in the tables below.
_______________________________________________________________________________
_______________________________________________________________________________
Enterprise-wide data by geographic region is as follows:
Our principal customers are cooperatives, independent fertilizer distributors and industrial users. In 2016, CHS accounted for approximately 12% of our consolidated net sales. See Note 17—Noncontrolling Interests for additional information. None of our customers accounted for more than ten percent of our consolidated sales in 2015 or 2014. |
Supplemental Cash Flow Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following provides additional information relating to cash flow activities:
|
Asset Retirement Obligations |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations (AROs) are legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development or normal operation of such assets. AROs are initially recognized as incurred when sufficient information exists to estimate fair value. We have AROs at our nitrogen fertilizer manufacturing complexes and at our distribution and storage facilities that are conditional upon cessation of operations. These AROs include certain decommissioning activities as well as the removal and disposal of certain chemicals, waste materials, structures, equipment, vessels, piping and storage tanks. Also included are reclamation of land and the closure of certain effluent ponds. The most recent estimate of the aggregate cost of these AROs expressed in 2016 dollars is $72 million. We have not recorded a liability for these conditional AROs as of December 31, 2016 because we do not believe there is currently a reasonable basis for estimating a date or range of dates of cessation of operations at our nitrogen fertilizer manufacturing facilities or our distribution and storage facilities, which is necessary in order to estimate fair value. In reaching this conclusion, we considered the historical performance of each complex or facility and have taken into account factors such as planned maintenance, asset replacements and upgrades of plant and equipment, which if conducted as in the past, can extend the physical lives of our nitrogen manufacturing facilities and our distribution and storage facilities indefinitely. We also considered the possibility of changes in technology, risk of obsolescence, and availability of raw materials in arriving at our conclusion. |
Leases |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||
Leases, Operating [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases We have operating leases for certain property and equipment under various noncancelable agreements, the most significant of which are rail car leases and barge tow charters for the distribution of fertilizer. The rail car leases currently have minimum terms ranging from one to eleven years and the barge charter commitments range from approximately one to seven years. We also have terminal and warehouse storage agreements for our distribution system, some of which contain minimum throughput requirements. The storage agreements contain minimum terms generally ranging from one to five years and commonly contain automatic annual renewal provisions thereafter unless canceled by either party. Future minimum payments under noncancelable operating leases with initial or remaining noncancelable lease terms in excess of one year as of December 31, 2016 are shown below.
Total rent expense for cancelable and noncancelable operating leases was $111 million for 2016, $100 million for 2015 and $93 million for 2014. |
Quarterly Data-Unaudited |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Data-Unaudited | Quarterly Data—Unaudited The following tables present the unaudited quarterly results of operations for the eight quarters ended December 31, 2016. This quarterly information has been prepared on the same basis as the consolidated financial statements and, in the opinion of management, reflects all adjustments necessary for the fair representation of the information for the periods presented. This data should be read in conjunction with the audited consolidated financial statements and related disclosures. Operating results for any quarter apply to that quarter only and are not necessarily indicative of results for any future period.
_______________________________________________________________________________
For the three months ended December 31, 2016, net loss attributable to common stockholders includes an after-tax impairment charge of $134 million on our equity method investment in PLNL that is included in equity in (loss) earnings of operating affiliates, and net loss per share attributable to common stockholders, basic and diluted, include the per share impact of $0.57. See Note 8—Equity Method Investments and Note 9—Fair Value Measurements for additional information.
For the three months ended September 30, 2015, net earnings attributable to common stockholders includes an after-tax gain of $94 million on the remeasurement to fair value of our initial 50% equity interest in CF Fertilisers UK that is included in equity in earnings of non-operating affiliates—net of taxes, and net earnings per share attributable to common stockholders, basic and diluted, include the per share impact of $0.40. See Note 4—Acquisitions and Divestitures and Note 8—Equity Method Investments for additional information. For the three months ended December 31, 2015, net earnings attributable to common stockholders includes an after-tax impairment charge of $62 million on our equity method investment in PLNL that is included in equity in earnings of operating affiliates, and net earnings per share attributable to common stockholders, basic and diluted, include the per share impact of $0.26. See Note 8—Equity Method Investments and Note 9—Fair Value Measurements for additional information. |
Condensed Consolidating Financial Statements |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements The following condensed consolidating financial information is presented in accordance with SEC Regulation S-X Rule 3-10, Financial statements of guarantors and issuers of guaranteed securities registered or being registered, and relates to (i) the senior notes due 2018, 2020, 2023, 2034, 2043 and 2044 (described in Note 12—Financing Agreements and referred to in this report as the Public Senior Notes) issued by CF Industries, Inc. (CF Industries), a 100% owned subsidiary of CF Industries Holdings, Inc. (Parent), and guarantees of the Public Senior Notes by Parent and by CFE and CFS (the Subsidiary Guarantors), which are 100% owned subsidiaries of Parent, and (ii) debt securities of CF Industries (Other Debt Securities), and guarantees thereof by Parent and the Subsidiary Guarantors, that may be offered and sold from time to time under registration statements that may be filed by Parent, CF Industries and the Subsidiary Guarantors with the SEC. In the event that a subsidiary of Parent, other than CF Industries, becomes a borrower or a guarantor under the Revolving Credit Agreement (or any renewal, replacement or refinancing thereof), such subsidiary would be required to become a guarantor of the Public Senior Notes, provided that such requirement will no longer apply with respect to the Public Senior Notes due 2023, 2034, 2043 and 2044 following the repayment of the Public Senior Notes due 2018 and 2020 or the subsidiaries of Parent, other than CF Industries, otherwise becoming no longer subject to such a requirement to guarantee the Public Senior Notes due 2018 and 2020. CFE and CFS became guarantors of the Public Senior Notes as a result of this requirement on November 21, 2016. All of the guarantees of the Public Senior Notes are, and we have assumed for purposes of this presentation of condensed consolidating financial information that the guarantees of any Other Debt Securities would be, full and unconditional (as such term is defined in SEC Regulation S-X Rule 3-10(h)) and joint and several. The guarantee of a Subsidiary Guarantor will be automatically released with respect to a series of the Public Senior Notes (1) upon the release, discharge or termination of such Subsidiary Guarantor’s guarantee of the Revolving Credit Agreement (or any renewal, replacement or refinancing thereof), (2) upon legal defeasance with respect to the Public Senior Notes of such series or satisfaction and discharge of the indenture with respect to such series of Public Senior Notes or (3) in the case of the Public Senior Notes due 2023, 2034, 2043 and 2044, upon the later to occur of (a) the discharge, termination or release of, or the release of such Subsidiary Guarantor from its obligations under, such Subsidiary Guarantor’s guarantee of the Public Senior Notes due 2018, including, without limitation, any such discharge, termination or release as a result of retirement, discharge or legal or covenant defeasance of, or satisfaction and discharge of the supplemental indenture governing, the Public Senior Notes due 2018, and (b) the discharge, termination or release of, or the release of such Subsidiary Guarantor from its obligations under, such Subsidiary Guarantor’s guarantee of the Public Senior Notes due 2020, including, without limitation, any such discharge, termination or release as a result of retirement, discharge or legal or covenant defeasance of, or satisfaction and discharge of the supplemental indenture governing, the Public Senior Notes due 2020. For purposes of the presentation of condensed consolidating financial information, the subsidiaries of Parent other than CF Industries, CFE and CFS are referred to as the Non-Guarantors. Presented below are condensed consolidating statements of operations and statements of cash flows for Parent, CF Industries, the Subsidiary Guarantors and the Non-Guarantors for the years ended December 31, 2016, 2015 and 2014 and condensed consolidating balance sheets for Parent, CF Industries, the Subsidiary Guarantors and the Non-Guarantors as of December 31, 2016 and 2015. Prior years have been restated to reflect the Subsidiary Guarantors separately. The condensed consolidating financial information presented below is not necessarily indicative of the financial position, results of operations, comprehensive (loss) income or cash flows of Parent, CF Industries, the Subsidiary Guarantors or the Non-Guarantors on a stand-alone basis. In these condensed consolidating financial statements, investments in subsidiaries are presented under the equity method, in which our investments are recorded at cost and adjusted for our ownership share of a subsidiary's cumulative results of operations, distributions and other equity changes, and the eliminating entries reflect primarily intercompany transactions such as sales, accounts receivable and accounts payable and the elimination of equity investments and earnings of subsidiaries. The tax provision in the presentation of condensed consolidating financial information has been computed based on the applicable statutory tax rate for the legal entity. Two of our consolidated entities have made elections to be taxed as partnerships for U.S. federal income tax purposes and are included in the non-guarantor column. Due to the partnership tax treatment, these subsidiaries do not record taxes on their financial statements. The tax provision pertaining to the income of these partnerships, plus applicable deferred tax balances are reflected on the financial statements of the parent company owner that is included in the subsidiary guarantors column in the following financial information. Liabilities related to benefit plan obligations are reflected on the legal entity that funds the obligation, while the benefit plan expense is included on the legal entity to which the employee provides services. Condensed Consolidating Statement of Operations
Condensed Consolidating Statement of Comprehensive (Loss) Income
Condensed Consolidating Statement of Operations
Condensed Consolidating Statement of Comprehensive Income
Condensed Consolidating Statement of Operations
Condensed Consolidating Statement of Comprehensive Income
Condensed Consolidating Balance Sheet
Condensed Consolidating Balance Sheet
Condensed Consolidating Statement of Cash Flows
Condensed Consolidating Statement of Cash Flows
Condensed Consolidating Statement of Cash Flows
|
Subsequent Event (Unaudited) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event (Unaudited) | Subsequent Event (Unaudited) Open |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||
Consolidation and Noncontrolling Interest | Consolidation and Noncontrolling Interests The consolidated financial statements of CF Holdings include the accounts of CF Industries and all majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. TNCLP is a master limited partnership that is consolidated in the financial statements of CF Holdings. TNCLP owns the nitrogen fertilizer manufacturing facility in Verdigris, Oklahoma. We own approximately 75.3% of TNCLP and outside investors own the remaining approximately 24.7%. Partnership interests in TNCLP are traded on the New York Stock Exchange (NYSE). As a result, TNCLP files separate financial reports with the Securities and Exchange Commission (SEC). The outside investors' limited partnership interests in the partnership are included in noncontrolling interests in our consolidated financial statements. This noncontrolling interest represents the noncontrolling unitholders' interest in the partners' capital of TNCLP. On February 1, 2016, CHS purchased a minority equity interest in CFN. We own a majority equity interest in CFN and consolidate CFN in our financial statements. CHS' minority equity interest in CFN is included in noncontrolling interests in our consolidated financial statements, and represents CHS' interest in the membership interests of CFN. |
||||||||||||||
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of 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 customer incentives, 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 plans, the assumptions used to determine the relative fair values of new reportable segments and the assumptions used in the valuation of stock-based compensation awards granted to employees. |
||||||||||||||
Revenue Recognition | Revenue Recognition The basic criteria necessary for revenue recognition are: (1) evidence that a sales arrangement exists, (2) delivery of goods has occurred, (3) the seller's price to the buyer is fixed or determinable, and (4) collectability is reasonably assured. We recognize revenue when these criteria have been met and when title and risk of loss transfers to the customer, which can be at the plant gate, a distribution facility, a supplier location or a customer destination. Revenue from forward sales programs is recognized on the same basis as other sales (when title and risk of loss transfers to the customer) regardless of when the customer advances are received. We offer certain incentives that typically involve rebates if a customer reaches a specified level of purchases. Customer incentives are accrued monthly and reported as a reduction in net sales. This process is intended to report sales at the ultimate net realized price and requires the use of estimates. Shipping and handling fees billed to customers are reported in revenue. Shipping and handling costs incurred by us are included in cost of sales. |
||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less. The carrying value of cash and cash equivalents approximates fair value. |
||||||||||||||
Investments | Investments Short-term investments and noncurrent investments are accounted for primarily as available-for-sale securities reported at fair value with changes in fair value reported in other comprehensive income unless fair value is below amortized cost (i.e., the investment is impaired) and the impairment is deemed other-than-temporary, in which case, some or all of the decline in value would be charged to earnings. The carrying values of short-term investments approximate fair values because of the short maturities and the highly liquid nature of these investments. |
||||||||||||||
Restricted Cash | Restricted Cash In connection with our capacity expansion projects, we granted a contractor a security interest in a restricted cash account. We maintain a cash balance in that account equal to the cancellation fees for procurement services and equipment that would arise if the projects were canceled. This restricted cash is not included in our cash and cash equivalents and is reported separately on our consolidated balance sheets. Contributions to and withdrawals from the restricted cash account are reported on our consolidated statements of cash flows as investing activities. |
||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at face amounts less an allowance for doubtful accounts. The allowance is an estimate based on historical collection experience, current economic and market conditions, and a review of the current status of each customer's trade accounts receivable. A receivable is past due if payments have not been received within the agreed-upon invoice terms. Account balances are charged-off against the allowance when management determines that it is probable that the receivable will not be recovered. Accounts receivable includes trade receivables and non-trade receivables. |
||||||||||||||
Inventories | Inventories Inventories are reported at the lower of cost or market with cost determined on a first-in, first-out (FIFO) and average cost basis. Inventory includes the cost of materials, production labor and production overhead. Inventory at warehouses and terminals also includes distribution costs to move inventory to the distribution facilities. Market value is reviewed at least quarterly. Fixed production costs related to idle capacity are not included in the cost of inventory but are charged directly to cost of sales in the period incurred |
||||||||||||||
Investments in and Advances to Unconsolidated Affiliates | Investment in Unconsolidated Affiliate The equity method of accounting is used for investments in affiliates that we do not consolidate, but over which we have the ability to exercise significant influence. Our equity method investment for which the results are included in operating earnings consists of our 50% ownership interest in PLNL, which operates an ammonia production facility in the Republic of Trinidad and Tobago. Our share of the net earnings from this investment is reported as an element of earnings from operations because PLNL's operations provide additional production and are integrated with our supply chain and sales activities in the ammonia segment. See Note 8—Equity Method Investments for additional information. Profits resulting from sales or purchases with equity method investees are eliminated until realized by the investee or investor, respectively. Investments in affiliates are reviewed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. When circumstances indicate that the fair value of an investment in an affiliate is less than its carrying value, and the reduction in value is other than temporary, the reduction in value is recognized immediately in earnings. |
||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method or the units-of-production (UOP) method and are recorded over the estimated useful life of the property, plant and equipment. Useful lives are as follows:
We periodically review the useful lives assigned to our property, plant and equipment, as well as estimated production capacities used to develop UOP depreciation expense, and we change the estimates to reflect the results of those reviews. Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facilities during a full plant shutdown are referred to as plant turnarounds. Plant turnarounds are accounted for under the deferral method, as opposed to the direct expense or built-in overhaul methods. Under the deferral method, expenditures related to turnarounds are capitalized in property, plant and equipment when incurred and amortized to production costs on a straight-line basis over the period benefited, which is until the next scheduled turnaround in up to five years. If the direct expense method were used, all turnaround costs would be expensed as incurred. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized. Turnaround costs are classified as investing activities in the consolidated statements of cash flows. See Note 6—Property, Plant and Equipment—Net for additional information. |
||||||||||||||
Recoverability of Long-Lived Assets | Recoverability of Long-Lived Assets We review property, plant and equipment and other long-lived assets in order to assess recoverability based on expected future undiscounted cash flows whenever events or circumstances indicate that the carrying value may not be recoverable. If the sum of the expected future net cash flows is less than the carrying value, an impairment loss is recognized. The impairment loss is measured as the amount by which the carrying value exceeds the fair value of the asset. |
||||||||||||||
Goodwill and Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to the assets acquired and liabilities assumed. Goodwill is not amortized, but is reviewed for impairment annually or more frequently if certain impairment conditions arise. We perform our annual goodwill impairment review in the fourth quarter of each year at the reporting unit level. Our evaluation can begin with a qualitative assessment of the factors that could impact the significant inputs used to estimate fair value. If after performing the qualitative assessment, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then no further testing is performed. However, if it is unclear based on the results of the qualitative test, we perform a quantitative test involving potentially two steps. The first step compares the fair value of a reporting unit with its carrying amount, including goodwill. We use an income-based valuation method, determining the present value of future cash flows, to estimate the fair value of a reporting unit. If the fair value of a reporting unit exceeds its positive carrying amount, goodwill of the reporting unit is considered not impaired, and the second step of the impairment test is unnecessary. The second step of the goodwill impairment test, if needed, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. We recognize an impairment loss immediately to the extent the carrying value exceeds its implied fair value. Our intangible assets are presented in other assets on our consolidated balance sheets. See Note 7—Goodwill and Other Intangible Assets for additional information regarding our goodwill and other intangible assets. |
||||||||||||||
Leases | Leases Leases may be classified as either operating leases or capital leases. Assets acquired under capital leases, if any, would be depreciated on the same basis as property, plant and equipment. For operating leases, rental payments, including rent holidays, leasehold incentives, and scheduled rent increases are expensed on a straight-line basis. Leasehold improvements are amortized over the shorter of the depreciable lives of the corresponding fixed assets or the lease term including any applicable renewals. |
||||||||||||||
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are projected to be recovered or settled. Realization of deferred tax assets is dependent on our ability to generate sufficient taxable income of an appropriate character in future periods. A valuation allowance is established if it is determined to be more likely than not that a deferred tax asset will not be realized. Significant judgment is applied in evaluating the need for and magnitude of appropriate valuation allowances against deferred tax assets. Interest and penalties related to unrecognized tax benefits are reported as interest expense and income tax expense, respectively. A deferred income tax liability is recorded for income taxes that would result from the repatriation of the portion of the investment in the Company's non-U.S. subsidiaries and joint venture that are considered to not be permanently reinvested. No deferred income tax liability is recorded for the remainder of our investment in non-U.S. subsidiaries and joint venture, which we believe to be permanently reinvested. |
||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Natural gas is the principal raw material used to produce nitrogen fertilizers. We manage the risk of changes in natural gas prices primarily through the use of derivative financial instruments. The derivative instruments that we use are primarily fixed price swaps and options traded in the over-the-counter (OTC) markets. The derivatives reference primarily NYMEX futures contract prices, which represent the basis for fair value at any given time. These derivatives are traded in months forward and settlements are scheduled to coincide with anticipated gas purchases during those future periods. In order to manage our exposure to changes in foreign currency exchange rates related to our capacity expansion projects, we used foreign currency derivatives, primarily forward exchange contracts. All of these foreign currency derivatives settled in 2016. The accounting for the change in the fair value of a derivative instrument depends on whether the instrument has been designated as a hedging instrument and whether the instrument is effective as part of a hedging relationship. Changes in the fair value of derivatives not designated as hedging instruments and the ineffective portion of derivatives designated as cash flow hedges are recorded in the consolidated statements of operations as the changes occur. Changes in the fair value of derivatives designated as cash flow hedging instruments considered effective are recorded in accumulated other comprehensive income (AOCI) as the changes occur, and are reclassified into income or expense as the hedged item is recognized in earnings. Derivative financial instruments are accounted for at fair value and recognized as current or noncurrent assets and liabilities on our consolidated balance sheets. The fair values of derivative instruments and any related cash collateral are reported on a gross basis rather than on a net basis. Cash flows related to natural gas derivatives are reported as operating activities. Cash flows related to foreign currency derivatives are reported as investing activities since they hedged future payments for the construction of long-term assets. We do not use derivatives for trading purposes and are not a party to any leveraged derivatives. See Note 15—Derivative Financial Instruments for additional information. |
||||||||||||||
Customer Advances | Customer Advances Customer advances represent cash received from customers following acceptance of orders under our forward sales programs. Such advances typically represent a significant portion of the contract's sales value and are generally collected by the time the product is shipped, thereby reducing or eliminating accounts receivable from customers upon shipment. Revenue is recognized when title and risk of loss transfers upon shipment or delivery of the product to customers. |
||||||||||||||
Environmental | Environmental Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations are expensed. Expenditures that increase the capacity or extend the useful life of an asset, improve the safety or efficiency of the operations, or mitigate or prevent future environmental contamination are capitalized. Liabilities are recorded when it is probable that an obligation has been incurred and the costs can be reasonably estimated. Environmental liabilities are not discounted. |
||||||||||||||
Stock-based Compensation | Stock-based Compensation We grant stock-based compensation awards under our equity and incentive plans. The awards that have been granted to date are nonqualified stock options, restricted stock awards, restricted stock units and performance share units. The cost of employee services received in exchange for the awards is measured based on the fair value of the award on the grant date and is recognized as expense on a straight-line basis over the period during which the employee is required to provide the services. See Note 19—Stock-Based Compensation for additional information. |
||||||||||||||
Treasury Stock | Treasury Stock We periodically retire treasury shares acquired through repurchases of our common stock and return those shares to the status of authorized but unissued. We account for treasury stock transactions under the cost method. For each reacquisition of common stock, the number of shares and the acquisition price for those shares is added to the treasury stock count and total value. When treasury shares are retired, we allocate the excess of the repurchase price over the par value of shares acquired to both retained earnings and paid-in capital. The portion allocated to paid-in capital is determined by applying the average paid-in capital per share, and the remaining portion is recorded to retained earnings. |
||||||||||||||
Litigation | Litigation From time to time, we are subject to ordinary, routine legal proceedings related to the usual conduct of our business. We may also be involved in proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of our various plants and facilities. Accruals for such contingencies are recorded to the extent management concludes their occurrence is probable and the financial impact of an adverse outcome is reasonably estimable. Legal fees are recognized as incurred and are not included in accruals for contingencies. Disclosure for specific legal contingencies is provided if the likelihood of occurrence is at least reasonably possible and the exposure is considered material to the consolidated financial statements. In making determinations of likely outcomes of litigation matters, many factors are considered. These factors include, but are not limited to, past history, scientific and other evidence, and the specifics and status of each matter. If the assessment of various factors changes, the estimates may change. Predicting the outcome of claims and litigation, and estimating related costs and exposure involves substantial uncertainties that could cause actual costs to vary materially from estimates and accruals. |
||||||||||||||
Foreign Currency Translation | Foreign Currency Translation We translate the financial statements of our foreign subsidiaries with non-U.S. dollar functional currencies using period-end exchange rates for assets and liabilities and weighted-average exchange rates for each period for revenues and expenses. The resulting translation adjustments are recorded as a separate component of AOCI within stockholders' equity. Foreign currency-denominated assets and liabilities are remeasured into U.S. dollars at exchange rates existing at the respective balance sheet dates. Gains and losses resulting from these foreign currency transactions are included in other operating—net on our consolidated statements of operations. Gains and losses resulting from intercompany foreign currency transactions that are of a long-term investment nature, if any, are reported in other comprehensive income. |
||||||||||||||
Debt Issuance Costs | Debt Issuance Costs Costs associated with the issuance of debt are recorded on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Costs associated with entering into revolving credit facilities are recorded as an asset in noncurrent assets. All debt issuance costs are amortized over the term of the related debt. Debt issuance discounts are netted against the related debt and are amortized over the term of the debt using the effective interest method. See Note 12—Financing Agreements for additional information. |
||||||||||||||
New Accounting Standards | New Accounting Standards Recently Adopted Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU makes a number of changes meant to simplify and improve accounting for share-based payments, including amendments to share-based accounting for income taxes, classifications in the statement of cash flows and share award forfeiture accounting. We elected to early adopt ASU No. 2016-09 in the third quarter of 2016. As a result, we retrospectively recast our consolidated statement of cash flows for the years ended December 31, 2015 and 2014 by reclassifying $2 million and $9 million, respectively, of excess tax benefit previously reported in financing activities to operating activities and $1 million and $3 million, respectively, of cash outflows related to shares withheld for taxes from operating activities to financing activities. We also elected to recognize equity award forfeitures as they occur to determine the amount of compensation cost to be recognized in each period. The update also requires us to recognize excess tax benefits and tax deficiencies in the statement of operations when awards are settled. The adoption of this ASU did not have a material impact on our consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). The amendments in ASU No. 2015-07 remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. ASU No. 2015-07 is effective for fiscal years beginning after December 15, 2015 and requires retrospective application. We elected to early adopt this ASU in the fourth quarter of 2015, and, as a result, certain of the investments in our defined benefit pension plans were reflected as reconciling items to the presentation of investments categorized within the fair value hierarchy table. In 2016, the American Institute of Certified Public Accountants issued guidance that clarified characteristics of investments that should continue to be categorized within the fair value hierarchy table. As a result, we recast certain investments that were reported as reconciling items to the December 31, 2015 fair value hierarchy tables. See Note 11—Pension and Other Postretirement Benefits for additional information. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. The ASU requires retrospective application and represents a change in accounting principle. In August 2015, the FASB issued the related ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which clarifies ASU No. 2015-03 and states that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We adopted ASU No. 2015-03 and ASU No. 2015-15 retrospectively in the first quarter of 2016, which resulted in the reclassification of deferred debt issuance costs as of December 31, 2015 of $56 million from other assets to an offset of long-term debt on our consolidated balance sheet as of December 31, 2015. Deferred debt issuance costs related to our revolving credit agreement continue to be reflected in other assets. See Note 12—Financing Agreements for additional information. Recently Issued Pronouncements In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted in the first interim period of an annual reporting period for which financial statements have not been issued. We are currently evaluating the impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the lease accounting requirements in Accounting Standards Codification (ASC) Topic 840, Leases. This ASU will require lessees to recognize the rights and obligations resulting from virtually all leases (other than leases that meet the definition of a short-term lease) on their balance sheets as right-of-use assets with corresponding lease liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of income and expense recognized and expected to be recognized from existing contracts. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted, and requires the modified retrospective method of adoption. We are currently evaluating the impact of the adoption of this ASU on our consolidated financial statements. See Note 24—Leases for additional information. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, effective for annual and interim periods beginning after December 15, 2016. ASU No. 2015-11 changes the inventory measurement principle for entities using the FIFO or average cost methods. For entities utilizing one of these methods, the inventory measurement principle will change from lower of cost or market to the lower of cost and net realizable value. We follow the FIFO or average cost methods and we have evaluated the effect of this ASU and we believe it will not have a material effect on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments. Additionally, the costs to obtain and fulfill a contract, including assets to be recognized, are to be capitalized and such capitalized costs should be disclosed. In 2016, the FASB issued additional ASUs that enhance the operability of the principal versus agent guidance in ASU No. 2014-09 by clarifying that an entity should consider the nature of each good or service promised to a customer at the individual good or service level, clarify that ASU No. 2014-09 should not be applied to immaterial performance obligations, and enhance the guidance around the treatment of shipping costs incurred to fulfill performance obligations. As modified by ASU No. 2015-14, Deferral of the Effective Date, the effective date of ASU No. 2014-09 is for interim and annual periods beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. We are analyzing the impact of ASU No. 2014-09 on our revenue contracts by comparing the revenue recognition that would have occurred from applying this ASU to revenue contracts that existed in 2015 and 2016. We are also reviewing our accounting policies and disclosures to determine changes needed to comply with this ASU, as well as identifying changes to our business processes, systems, and controls needed to support adoption of this ASU. |
Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||
Schedule of depreciable lives | Property, plant and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method or the units-of-production (UOP) method and are recorded over the estimated useful life of the property, plant and equipment. Useful lives are as follows:
|
Acquisitions and Divestitures (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Fair Value of Assets Acquired and Liabilities Assumed |
_______________________________________________________________________________
|
Net Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of net earnings per share | Net earnings per share were computed as follows:
|
Property, Plant and Equipment-Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of property, plant and equipment-net | Property, plant and equipment—net consists of the following:
_______________________________________________________________________________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of plant turnaround activity | The following is a summary of capitalized plant turnaround costs:
|
Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying amount of goodwill by business segment | The following table shows the carrying amount of goodwill by reportable segment as of December 31, 2016 and 2015:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the identifiable intangibles and their carrying values presented in other noncurrent assets on consolidated balance sheet |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated future amortization expense | Total estimated amortization expense for each of the five succeeding fiscal years is as follows:
|
Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of cash and cash equivalents and other investments reconciliation from adjusted cost to fair value | Our cash and cash equivalents and other investments consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables present assets and liabilities included in our consolidated balance sheets as of December 31, 2016 and 2015 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying amounts and estimated fair values of financial instruments | The carrying amounts and estimated fair value of our financial instruments are as follows:
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of earnings before income taxes and equity in earnings of non-operating affiliates | The components of (loss) earnings before income taxes and equity in earnings of non-operating affiliates are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of Income tax provision | The components of the income tax (benefit) provision are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of differences in expected income tax provision based on statutory rates applied to earnings before income taxes and income tax provision reflected in the consolidated statements of operations | Differences in the expected income tax (benefit) provision based on statutory rates applied to (loss) earnings before income taxes and the income tax (benefit) provision reflected in the consolidated statements of operations are summarized below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of deferred tax assets and deferred tax liabilities | Deferred tax assets and deferred tax liabilities are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|
Pension and Other Postretirement Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of plan assets, benefit obligations, funded status for the U.S. and Canadian plans | Our plan assets, benefit obligations, funded status and amounts recognized on the consolidated balance sheets for our North America and United Kingdom plans as of the December 31 measurement date are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amounts recognized in consolidated balance sheets | Amounts recognized on the consolidated balance sheets consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of pre-tax amounts recognized in accumulated other comprehensive loss | Pre-tax amounts recognized in accumulated other comprehensive loss consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net periodic benefit cost and other amounts recognized in accumulated other comprehensive loss | Net periodic benefit cost (income) and other amounts recognized in accumulated other comprehensive loss for the years ended December 31 included the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2014 | Amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2017 are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of benefit obligations in excess of fair value of plan assets | The following table presents aggregated information for those individual defined benefit pension plans with an ABO in excess of plan assets as of December 31:
The following table presents aggregated information for those individual defined benefit pension plans with a PBO in excess of plan assets as of December 31:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of expected future pension and retiree medical benefit payments | The expected future benefit payments for our pension and retiree medical plans are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assumptions used in determining the benefit obligations and expense | The following assumptions were used in determining the benefit obligations and expense:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of one-percentage point change in the assumed health care cost trend rate | A one-percentage point change in the assumed health care cost trend rate of our primary (U.S.) retiree medical benefit plans as of December 31, 2016 would have the following effects on our retiree medical benefit plans:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair values of U.S. and Canadian pension plan assets | The fair values of our pension plan assets as of December 31, 2016 and 2015, by major asset class, are as follows:
_______________________________________________________________________________
|
Interest Expense (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of interest expense | Details of interest expense are as follows:
|
Other Operating-Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating-Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of other operating-net | Details of other operating—net are as follows:
|
Noncontrolling Interests (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of the beginning and ending balances of noncontrolling interest and distributions payable to the noncontrolling interests on the entity's consolidated balance sheet | A reconciliation of the beginning and ending balances of noncontrolling interests and distributions payable to the noncontrolling interests on our consolidated balance sheets is provided below.
|
Derivative Financial Instruments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of effect of derivatives in our consolidated statements of operations | The effect of derivatives in our consolidated statements of operations is shown in the table below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair values of derivatives in our consolidated balance sheet | The fair values of derivatives on our consolidated balance sheets are shown below. As of December 31, 2016 and 2015, none of our derivative instruments were designated as hedging instruments. See Note 9—Fair Value Measurements for additional information on derivative fair values.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amounts relevant to offsetting of derivative assets | The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of December 31, 2016 and 2015:
_______________________________________________________________________________
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amounts relevant to offsetting of derivative liabilities | The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of December 31, 2016 and 2015:
_______________________________________________________________________________
|
Supplemental Balance Sheet Data (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable—net consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventory, current | Inventories consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accounts payable and accrued liabilities | Accounts payable and accrued expenses consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other noncurrent liabilities | Other liabilities consist of the following:
|
Stockholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Repurchases | The following table summarizes the share repurchases under the 2014 Program and the 2012 Program.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in common shares issued and outstanding | Changes in common shares outstanding are as follows:
_______________________________________________________________________________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes to accumulated other comprehensive income (loss) | Changes to accumulated other comprehensive (loss) income (AOCI) and the impact on other comprehensive loss are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reclassifications out of AOCI | Reclassifications out of AOCI to the consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014 were as follows:
_______________________________________________________________________________
|
Stock-Based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of key assumptions used to calculate fair value of each stock option award and resulting grant date fair values | The fair value of each stock option award is estimated using the Black-Scholes option valuation model. Key assumptions used and resulting grant date fair values are shown in the following table.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of stock option activity under the plan | A summary of stock option activity during the year ended December 31, 2016 is presented below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of selected amounts pertaining to stock option exercises | Selected amounts pertaining to stock option exercises are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of information about stock options outstanding and exercisable | The following table summarizes information about stock options outstanding and exercisable as of December 31, 2016:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock activity under the Plan | A summary of restricted stock activity during the year ended December 31, 2016 is presented below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of selected amounts pertaining to restricted stock that vested | Selected amounts pertaining to restricted stock awards that vested are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of stock-based compensation costs and related income tax benefits | The following table summarizes stock-based compensation costs and related income tax benefits.
|
Segment Disclosures (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of segment data for sales, cost of sales and gross margin | Segment data for sales, cost of sales and gross margin for 2016, 2015 and 2014 are presented in the tables below.
_______________________________________________________________________________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment depreciation, depletion and amortization |
_______________________________________________________________________________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of enterprise-wide data by geographic region | Enterprise-wide data by geographic region is as follows:
|
Supplemental Cash Flow Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of additional information relating to cash flow activities | The following provides additional information relating to cash flow activities:
|
Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||
Leases, Operating [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Summary of future minimum payments under noncancelable operating leases, barge charters and storage agreements | Future minimum payments under noncancelable operating leases with initial or remaining noncancelable lease terms in excess of one year as of December 31, 2016 are shown below.
|
Quarterly Data-Unaudited (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of operating results | The following tables present the unaudited quarterly results of operations for the eight quarters ended December 31, 2016. This quarterly information has been prepared on the same basis as the consolidated financial statements and, in the opinion of management, reflects all adjustments necessary for the fair representation of the information for the periods presented. This data should be read in conjunction with the audited consolidated financial statements and related disclosures. Operating results for any quarter apply to that quarter only and are not necessarily indicative of results for any future period.
_______________________________________________________________________________
For the three months ended December 31, 2016, net loss attributable to common stockholders includes an after-tax impairment charge of $134 million on our equity method investment in PLNL that is included in equity in (loss) earnings of operating affiliates, and net loss per share attributable to common stockholders, basic and diluted, include the per share impact of $0.57. See Note 8—Equity Method Investments and Note 9—Fair Value Measurements for additional information.
|
Condensed Consolidating Financial Statements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statement of Operations
Condensed Consolidating Statement of Operations
Condensed Consolidating Statement of Operations
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income
Condensed Consolidating Statement of Comprehensive (Loss) Income
Condensed Consolidating Statement of Comprehensive Income
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheet
Condensed Consolidating Balance Sheet
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows
Condensed Consolidating Statement of Cash Flows
Condensed Consolidating Statement of Cash Flows
|
Summary of Significant Accounting Policies (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Cash equivalents: | |
Maximum original maturity period of highly liquid debt instruments to be considered as cash equivalents | 3 months |
Operating equity method investments | Point Lisas Nitrogen Limited (PLNL) | |
Consolidation and Noncontrolling Interest | |
Ownership interest (as a percent) | 50.00% |
TNCLP | |
Consolidation and Noncontrolling Interest | |
Parent ownership interest (as a percent) | 75.30% |
Percentage of ownership interest held by outside investors | 24.70% |
Summary of Significant Accounting Policies (Details 2) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Depreciable lives | |
Turnaround period | 5 years |
Mobile and office equipment | Minimum | |
Depreciable lives | |
Depreciable life | 3 years |
Mobile and office equipment | Maximum | |
Depreciable lives | |
Depreciable life | 10 years |
Production facilities and related assets | Minimum | |
Depreciable lives | |
Depreciable life | 2 years |
Production facilities and related assets | Maximum | |
Depreciable lives | |
Depreciable life | 30 years |
Land improvements | Minimum | |
Depreciable lives | |
Depreciable life | 10 years |
Land improvements | Maximum | |
Depreciable lives | |
Depreciable life | 30 years |
Buildings | Minimum | |
Depreciable lives | |
Depreciable life | 10 years |
Buildings | Maximum | |
Depreciable lives | |
Depreciable life | 40 years |
Summary of Significant Accounting Policies (Details 3) |
Dec. 31, 2016
USD ($)
|
---|---|
Non US Subsidiaries | |
Investment | |
Deferred tax liabilities, deferred expense | $ 0 |
Net Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Earnings Per Share [Abstract] | |||||||||||
Net (loss) earnings attributable to common stockholders | $ (320.0) | $ (30.0) | $ 47.0 | $ 26.0 | $ 27.0 | $ 90.0 | $ 352.0 | $ 231.0 | $ (277.0) | $ 700.0 | $ 1,390.0 |
Basic earnings per common share: | |||||||||||
Weighted-average common shares outstanding (in shares) | 233.1 | 235.3 | 255.9 | ||||||||
Net earnings attributable to common stockholders (in dollars per share) | $ (1.38) | $ (0.13) | $ 0.20 | $ 0.11 | $ 0.11 | $ 0.39 | $ 1.50 | $ 0.96 | $ (1.19) | $ 2.97 | $ 5.43 |
Diluted earnings per common share: | |||||||||||
Weighted-average common shares outstanding (in shares) | 233.1 | 235.3 | 255.9 | ||||||||
Dilutive common shares—stock options (in shares) | 0.0 | 0.8 | 0.8 | ||||||||
Diluted weighted-average shares outstanding (in shares) | 233.1 | 236.1 | 256.7 | ||||||||
Net earnings attributable to common stockholders (in dollars per share) | $ (1.38) | $ (0.13) | $ 0.20 | $ 0.11 | $ 0.11 | $ 0.39 | $ 1.49 | $ 0.96 | $ (1.19) | $ 2.96 | $ 5.42 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4.9 | 1.6 | 0.7 |
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Jul. 31, 2015 |
|
Identifiable intangibles | ||||
Gross Carrying Amount | $ 164.0 | $ 185.0 | ||
Accumulated Amortization | (36.0) | (29.0) | ||
Net | 128.0 | 156.0 | ||
Amortization expense | $ 7.0 | 10.0 | $ 4.0 | |
CF Fertilisers UK | ||||
Identifiable intangibles | ||||
Business combination, finite-lived intangibles | $ 132.0 | |||
Business acquisition, percentage of voting interests acquired | 50.00% | |||
Finite-lived intangible asset, useful life | 20 years | |||
Customer relationships | ||||
Identifiable intangibles | ||||
Gross Carrying Amount | $ 125.0 | 140.0 | ||
Accumulated Amortization | (24.0) | (18.0) | ||
Net | 101.0 | 122.0 | ||
TerraCair brand | ||||
Identifiable intangibles | ||||
Gross Carrying Amount | 10.0 | 10.0 | ||
Accumulated Amortization | (10.0) | (10.0) | ||
Net | 0.0 | 0.0 | ||
Trade names | ||||
Identifiable intangibles | ||||
Gross Carrying Amount | 29.0 | 35.0 | ||
Accumulated Amortization | (2.0) | (1.0) | ||
Net | $ 27.0 | $ 34.0 |
Goodwill and Other Intangible Assets (Details 3) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2017 | $ 9 |
2018 | 9 |
2019 | 9 |
2020 | 9 |
2021 | $ 9 |
Pension and Other Postretirement Benefits (Details 4) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Compensation and Retirement Disclosure [Abstract] | ||||
Employer contribution | $ 16.0 | $ 14.0 | $ 12.0 | |
Nonqualified supplemental pension plan | ||||
Pension and Other Postretirement Benefits | ||||
Accrued expenses | 3.0 | 3.0 | ||
Other noncurrent liability | 17.0 | 19.0 | ||
Expenses recognized | 3.0 | $ 2.0 | $ 5.0 | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ 3.4 | $ 1.0 |
Other Operating-Net (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Other Operating-Net | |||
Loss on disposal of property, plant and equipment—net | $ 10.0 | $ 21.0 | $ 4.0 |
Expansion project costs(1) | 73.0 | 51.0 | 30.0 |
Loss on foreign currency derivatives(2) | 0.0 | 22.0 | 38.0 |
Loss (gain) on foreign currency transactions(3) | 93.0 | (8.0) | (15.0) |
Loss on Embedded Derivative Instrument | 23.0 | 0.0 | 0.0 |
Closed facilities costs | 0.0 | 0.0 | 1.0 |
Other | 9.0 | 6.0 | (5.0) |
Other operating—net | $ 208.0 | $ 92.0 | $ 53.0 |
Derivative Financial Instruments (Details) € in Millions, MMBTU in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016
USD ($)
MMBTU
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2015
EUR (€)
MMBTU
|
|
Fair values of derivatives on consolidated balance sheets | ||||
Open derivative contracts for natural gas (in MMBtus) | MMBTU | 183.0 | 431.5 | ||
Percentage of natural gas consumption covered by derivatives | 84.00% | |||
Reclassification of de-designated hedges | $ 0 | $ 0 | $ 3,000,000 | |
Derivatives designated as cash flow hedges | Foreign currency derivatives | ||||
Fair values of derivatives on consolidated balance sheets | ||||
Notional amount of derivative | 0 | |||
Net gain (loss) expected to be reclassified into earnings from AOCI | $ 0 | |||
Unrealized gain (loss) on cash flow hedges, pretax, in AOCI | $ 7,000,000 | |||
Derivatives not designated as cash flow hedges | Foreign currency derivatives | ||||
Fair values of derivatives on consolidated balance sheets | ||||
Notional amount of derivative | € | € 89 |
Derivative Financial Instruments (Details 3) - USD ($) |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair values of derivatives on consolidated balance sheets | ||
Aggregate fair value of the derivative instruments with credit risk related contingent features in a net liability position | $ 0 | $ 211,000,000 |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Derivatives not designated as cash flow hedges | ||
Fair values of derivatives on consolidated balance sheets | ||
Asset Derivative | 56,000,000 | 0 |
Liability derivative | (6,000,000) | (211,000,000) |
Cash collateral on deposit with derivative counterparties | 0 | 0 |
Derivatives not designated as cash flow hedges | Natural gas derivatives | ||
Fair values of derivatives on consolidated balance sheets | ||
Other current assets | 52,000,000 | 0 |
Other assets | 4,000,000 | 0 |
Other current liabilities | 0 | (130,000,000) |
Other liabilities | $ (6,000,000) | $ (81,000,000) |
Supplemental Balance Sheet Data -Accounts Receivable-Net (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable—net | $ 236.0 | $ 267.0 |
Allowance for Doubtful Accounts Receivable | 3.0 | 3.0 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable—net | 227.0 | 210.0 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable—net | $ 9.0 | $ 57.0 |
Supplemental Balance Sheet Data -Inventories (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 279 | $ 286 |
Raw materials, spare parts and supplies | 60 | 35 |
Inventory, Net | $ 339 | $ 321 |
Supplemental Balance Sheet Data -Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $ 81.0 | $ 97.0 |
Capacity expansion project costs | 185.0 | 416.0 |
Accrued natural gas costs | 111.0 | 70.0 |
Payroll and employee-related costs | 46.0 | 49.0 |
Accrued interest | 53.0 | 60.0 |
Other | 162.0 | 226.0 |
Accounts payable and accrued liabilities, current | $ 638.0 | $ 918.0 |
Supplemental Balance Sheet Data -Other Noncurrent Liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Benefit plans and deferred compensation | $ 393.0 | $ 343.0 | |
Tax-related liabilities | 103.0 | 118.0 | |
Unrealized losses on derivatives | 6.0 | 81.0 | |
Unrealized Loss on Embedded Derivative | 21.0 | 0.0 | |
Unrealized Loss on Embedded Derivative Instrument | $ 22.0 | ||
Capacity expansion project costs | 0.0 | 55.0 | |
Environmental and related costs | 8.0 | 7.0 | |
Other | 14.0 | 24.0 | |
Other liabilities, noncurrent | 545.0 | 628.0 | |
Unrealized losses on derivatives, current | $ 5.0 | $ 130.0 |
Stockholders' Equity (Details 3) - $ / shares |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Preferred Stock | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Number of preferred stock issued | 0 |
Contingencies (Details) - Pending Litigation |
1 Months Ended | 12 Months Ended | |
---|---|---|---|
Apr. 17, 2015
Insurance_company
People
Plaintiff
Entity
|
Apr. 30, 2013
People
|
Dec. 31, 2016
Litigation_case
|
|
Loss Contingencies [Line Items] | |||
Number of people killed | 15 | ||
Number of people injured | 200 | ||
Number of plaintiffs | Plaintiff | 400 | ||
Number of entities that filed claims | Entity | 9 | ||
Number of people that filed claims | 325 | ||
Number of insurance companies that filed claims | Insurance_company | 80 | ||
Number of litigation cases scheduled for trial | Litigation_case | 34 |
Segment Disclosures (Narrative) (Details) - CF Fertilisers UK |
Dec. 31, 2015 |
Jul. 31, 2015 |
---|---|---|
Segment reporting information | ||
Business acquisition, percentage of voting interests acquired | 50.00% | |
Ownership interest (as a percent) | 50.00% |
Segment Disclosures (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Jul. 31, 2015 |
|
Segment data | ||||||||||||
Net sales | $ 867.0 | $ 680.0 | $ 1,134.0 | $ 1,004.0 | $ 1,115.0 | $ 928.0 | $ 1,311.0 | $ 954.0 | $ 3,685.0 | $ 4,308.0 | $ 4,743.0 | |
Cost of sales | 2,845.0 | 2,761.0 | 2,965.0 | |||||||||
Gross margin | $ 94.0 | $ 2.0 | $ 527.0 | $ 217.0 | $ 280.0 | $ 165.0 | $ 686.0 | $ 416.0 | 840.0 | 1,547.0 | 1,778.0 | |
Total other operating costs and expenses | 561.0 | 319.0 | 205.0 | |||||||||
Gain on sale of phosphate business | 0.0 | 0.0 | 750.0 | |||||||||
Equity in (losses) earnings of operating affiliates | (145.0) | (35.0) | 43.0 | |||||||||
Operating earnings | 134.0 | 1,193.0 | 2,366.0 | |||||||||
Depreciation and amortization | 678.0 | 480.0 | 393.0 | |||||||||
Operating segments | Ammonia | ||||||||||||
Segment data | ||||||||||||
Net sales | 981.0 | 1,523.0 | 1,576.0 | |||||||||
Cost of sales | 715.0 | 884.0 | 983.0 | |||||||||
Gross margin | 266.0 | 639.0 | 593.0 | |||||||||
Depreciation and amortization | 96.0 | 95.0 | 69.0 | |||||||||
Operating segments | Granular Urea | ||||||||||||
Segment data | ||||||||||||
Net sales | 831.0 | 788.0 | 915.0 | |||||||||
Cost of sales | 584.0 | 469.0 | 517.0 | |||||||||
Gross margin | 247.0 | 319.0 | 398.0 | |||||||||
Depreciation and amortization | 112.0 | 51.0 | 37.0 | |||||||||
Operating segments | UAN | ||||||||||||
Segment data | ||||||||||||
Net sales | 1,196.0 | 1,480.0 | 1,670.0 | |||||||||
Cost of sales | 920.0 | 955.0 | 998.0 | |||||||||
Gross margin | 276.0 | 525.0 | 672.0 | |||||||||
Depreciation and amortization | 247.0 | 192.0 | 179.0 | |||||||||
Operating segments | AN | ||||||||||||
Segment data | ||||||||||||
Net sales | 411.0 | 294.0 | 243.0 | |||||||||
Cost of sales | 409.0 | 291.0 | 189.0 | |||||||||
Gross margin | 2.0 | 3.0 | 54.0 | |||||||||
Depreciation and amortization | 93.0 | 66.0 | 47.0 | |||||||||
Operating segments | Other | ||||||||||||
Segment data | ||||||||||||
Net sales | 266.0 | 223.0 | 171.0 | |||||||||
Cost of sales | 217.0 | 162.0 | 120.0 | |||||||||
Gross margin | 49.0 | 61.0 | 51.0 | |||||||||
Depreciation and amortization | 46.0 | 35.0 | 20.0 | |||||||||
Operating segments | Phosphate | ||||||||||||
Segment data | ||||||||||||
Net sales | 0.0 | 0.0 | 168.0 | |||||||||
Cost of sales | 0.0 | 0.0 | 158.0 | |||||||||
Gross margin | 0.0 | 0.0 | 10.0 | |||||||||
Depreciation and amortization | 0.0 | 0.0 | 0.0 | |||||||||
Corporate | ||||||||||||
Segment data | ||||||||||||
Depreciation and amortization | $ 84.0 | $ 41.0 | $ 41.0 | |||||||||
CF Fertilisers UK | ||||||||||||
Segment reporting information | ||||||||||||
Business acquisition, percentage of voting interests acquired | 50.00% |
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Cash paid during the year | |||
Interest—net of interest capitalized | $ 144.0 | $ 100.0 | $ 141.0 |
Income taxes—net of refunds | (110.0) | 435.0 | 781.0 |
Supplemental disclosure of noncash investing and financing activities: | |||
Change in capitalized expenditures in accounts payable and accrued expenses | (263.0) | 258.0 | 72.0 |
Change in capitalized expenditures in other liabilities | (55.0) | 6.0 | (22.0) |
Change in noncontrolling interests in other liabilities | 8.0 | 0.0 | 0.0 |
Change in accrued share repurchases | $ 0.0 | $ (29.0) | $ (11.0) |
Asset Retirement Obligations (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Asset Retirement Obligation [Line Items] | |
Unrecorded AROs | $ 72 |
Leases (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Future minimum payments under noncancelable operating leases, barge charters and storage agreements | |||
2017 | $ 89.0 | ||
2018 | 83.0 | ||
2019 | 65.0 | ||
2020 | 51.0 | ||
2021 | 41.0 | ||
Thereafter | 92.0 | ||
Total | 421.0 | ||
Total rent expense for cancelable and noncancelable operating leases | $ 111.0 | $ 100.0 | $ 93.0 |
Rail car | Minimum | |||
Agreed term of leases | |||
Term | 1 year | ||
Rail car | Maximum | |||
Agreed term of leases | |||
Term | 11 years | ||
Barge charter | Minimum | |||
Agreed term of leases | |||
Term | 1 year | ||
Barge charter | Maximum | |||
Agreed term of leases | |||
Term | 7 years | ||
Terminal and warehouse storage | Minimum | |||
Agreed term of leases | |||
Term | 1 year | ||
Terminal and warehouse storage | Maximum | |||
Agreed term of leases | |||
Term | 5 years |
Subsequent Event (Unaudited) (Details) - CF Industries Nitrogen, LLC [Member] T in Thousands |
Dec. 31, 2016
T
|
---|---|
Subsequent Event [Line Items] | |
Right to purchase maximum annual granular urea (in tons) | 1,100 |
Maximum annual UAN eligible for purchase at market prices (in tons) | 580 |
O(?-?4QF5M1( Q)8*E34.K4EXH ^(9BB)%R7QH! '9="D-UG2
M:'@ 8"ZG0-ZF #U*7N#MP#M*[+O6?V6
M5XWS(J049?>O?R^$Y"J@_TUYR8%GN_--P?>RO8S5==V_FNIOI#CJUV[>^=W?
MZC]02P,$% @ VFM72GR+>6HN P )@\ !D !X;"]W;W)K CIT+&KL4LZJ3TC&.@=0#?5#.6+F=*A:9!Q1;H*=L\-,
M'R)BV72H-FR':()ITUDGR\ $5>F^T 161RQ2[I)960$8^?AXHC5T4VJ)",8
M[XK8%-VD8C*"L2-G<<1EZ";5DQ&,=T4L@FY221G#2%?,J(ZC;%H7'*S(>M' =W _
M^I/Q%EM8*JFALQ([8J#.Z>W^<$Q#? SX*6&TJS,)E9P1GX+QK4S,5_
M@0LH# ]*,$=IE(LK*0?GC9Y94(H6+],NN[B/TTUZA6T#^ S@"^ V MB4*"I_
M$%X4F34CL5/O>Q&>>'?@V)LR.&,KXAV*=^B]%#S99>P2B.:8XQ3#5S&O$0S9
MEQ1\*\61_P/GV_!T4V$:X>D?"O]#L-\DV$>"_9LE;L6D?R5AJYYJL$V<)D=*
M,W1QDE?>96#O>'R3U_!IVK\*V\C.D;/Q^+*Q_[4Q'E!*&PO=V]R:W-H965T
5,$96Q'O4+Q#[[7,#DG.KH%H
MB3G-,7P3DZX1#-G7%'POQ8G_!^?[\,.NPD.$'[;PNV2?(-LER")!]D^)Z;L2
M]V+>JV2;GBJP;9PF1RHSZCC)&^\ZL \\OLE;^#SMWX1M>^W(Q7A\V=C_QA@/
M*"6YP1'J\(.MAH3&A^,'/-MYS&;#FV'Y06S]QN5?4$L#!!0 ( -EK5TJU
MCDEBWP$ $% 9 >&PO=V]R:W-H965TG(Z+_LTYT65BL(J^6%F
M/Y')B]<8-(A_4WZM;NZM.I0W(7[4#R_[F>W6C'C&=[)VD:C+.U_R+*L]*1[_
M:Z=V-V=M>'O_X7W3!*^">4LJOA39?^E>GF9V9%M[?D@NF?PFKL]D;ATRB57)[>K!IL*:_U1-5&KT?
3_EK.JM?C,2O_>]!Y\7XW%_-?![X=7O9U
M>\!;K\[9B_ZNZ[_.7\OFDW>ILCL<]:DZ%*=9J9_OYO?B]C'TVP$=\?=!OU=7
M[V>ME*>B^-%^^'UW-_?;CG2NMW5;(FM>WO1&YWE;J>GCWZ'H_'+.=N#U^U_5
M'SOQC9BGK-*;(O_GL*OW=_/%?+;3S]EK7G\KWG_3@Z!P/AO4_Z'?=-[@;2?-
M.;9%7G7_SK:O55T
+\"L"0SK61K6(]R,H +$+.I QE9$=
DNH(0DN$H\ZC5'<:T5)RKJ[%4
MY?OFZK2P-OH]*^N<7HU>KFOGZY;^^"_X[S_3$K
MK#==ECIMKMUV6I>JHNX^5 D\J'A[>4G4KJP?)]5SWM[!MB^E/G7WR\[EDGOQ
M/U!+ P04 " #::U=*Q@&&"ID( !;.@ &0 'AL+W=O
+.@ZE ]5[*[9)%./*L2@%QX^] 7N\]UEW2VB*H$H!?>:"4PKK(D38RK
M IRK1;_#>GM"]8]!6$]$>!I[ME$\$W9B7I7&6DNH04F(552 >;,8B]()]?Z>
MV7*?.#P%V2E!1^"XDCTOQ'0I#3BP9 5W(3Y(049(