Segment Disclosures

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Disclosures

Segment Disclosures

Our reportable segments consist of ammonia, granular urea, UAN, AN and Other. These segments are differentiated by products. 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 chief operating decision maker 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 the three and nine months ended September 30, 2020 and 2019 are presented in the tables below.

	Ammonia		Granular Urea(1)		UAN(1)		AN(1)		Other(1)		Consolidated
	(in millions)
Three months ended September 30, 2020
Net sales	$	165	$	249	$	248	$	109	$	76	$	847
Cost of sales	174		183		237		96		74		764
Gross margin	$	(9)	$	66	$	11	$	13	$	2	83
Total other operating costs and expenses											45
Equity in earnings of operating affiliate											2
Operating earnings											$	40
Three months ended September 30, 2019
Net sales	$	187	$	327	$	309	$	136	$	79	$	1,038
Cost of sales	188		207		250		100		65		810
Gross margin	$	(1)	$	120	$	59	$	36	$	14	228
Total other operating costs and expenses											26
Equity in losses of operating affiliate											(14)
Operating earnings											$	188

	Ammonia		Granular Urea(1)		UAN(1)		AN(1)		Other(1)		Consolidated
	(in millions)
Nine months ended September 30, 2020
Net sales	$	722	$	915	$	791	$	343	$	251	$	3,022
Cost of sales	609		612		675		290		215		2,401
Gross margin	$	113	$	303	$	116	$	53	$	36	621
Total other operating costs and expenses											162
Equity in earnings of operating affiliate											8
Operating earnings											$	467
Nine months ended September 30, 2019
Net sales	$	847	$	1,103	$	934	$	389	$	268	$	3,541
Cost of sales	654		686		722		308		224		2,594
Gross margin	$	193	$	417	$	212	$	81	$	44	947
Total other operating costs and expenses											113
Equity in losses of operating affiliate											(6)
Operating earnings											$	828

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(1)The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results.