v3.26.1
Segment Disclosures (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Summary of segment data for sales, cost of sales and gross margin Segment data for gross margin, including sales and cost of sales, which also includes significant expenses, for the three and six months ended June 30, 2026 and 2025 are presented in the tables below.
Three months ended 
June 30,		Six months ended 
June 30,
2026202520262025
(in millions)
Ammonia
Net sales$586 $491 $1,213 $1,011 
Cost of sales:
Natural gas, including the impact of realized derivatives(1)
101 108 237 218 
Unrealized net mark-to-market (gain) loss on natural gas derivatives(1)— (2)1 
Depreciation and amortization(2)
67 60 136 115 
Distribution and storage(3)
58 58 97 95 
Freight(4)
11 10 26 25 
Other segment items(5)
121 119 263 235 
Total cost of sales
357 355 757 689 
Gross margin$229 $136 $456 $322 
Granular Urea
Net sales$759 $547 $1,349 $986 
Cost of sales:
Natural gas, including the impact of realized derivatives(1)
79 83 209 178 
Unrealized net mark-to-market gain on natural gas derivatives(1)— (2)— 
Depreciation and amortization(2)
75 72 151 143 
Distribution and storage(3)
3 2 7 5 
Freight(4)
21 12 32 19 
Other segment items(5)
105 99 220 189 
Total cost of sales
282 268 617 534 
Gross margin$477 $279 $732 $452 
Three months ended 
June 30,		Six months ended 
June 30,
2026202520262025
(in millions)
UAN
Net sales$613 $610 $1,196 $1,080 
Cost of sales:
Natural gas, including the impact of realized derivatives(1)
63 91 176 195 
Unrealized net mark-to-market (gain) loss on natural gas derivatives— — (1)1 
Depreciation and amortization(2)
53 72 117 145 
Distribution and storage(3)
24 25 39 38 
Freight(4)
36 35 72 71 
Other segment items(5)
87 117 193 218 
Total cost of sales
263 340 596 668 
Gross margin$350 $270 $600 $412 
AN
Net sales$71 $117 $129 $218 
Cost of sales:
Natural gas, including the impact of realized derivatives(1)
— 14 1 24 
Depreciation and amortization(2)
3 10 6 18 
Freight(4)
5 9 8 16 
Other segment items(5)
67 59 129 119 
Total cost of sales
75 92 144 177 
Gross margin$(4)$25 $(15)$41 
Other(6)
Net sales$193 $125 $321 $258 
Cost of sales:
Natural gas, including the impact of realized derivatives(1)
12 12 29 27 
Depreciation and amortization(2)
16 17 32 30 
Distribution and storage(3)
1 2 1 2 
Freight(4)
17 14 31 30 
Other segment items(5)
54 35 110 69 
Total cost of sales
100 80 203 158 
Gross margin$93 $45 $118 $100 
Three months ended 
June 30,		Six months ended 
June 30,
2026202520262025
(in millions)
Consolidated
Net sales$2,222 $1,890 $4,208 $3,553 
Cost of sales:
Natural gas, including the impact of realized derivatives(1)
255 308 652 642 
Unrealized net mark-to-market (gain) loss on natural gas derivatives(2)— (5)2 
Depreciation and amortization(2)
214 231 442 451 
Distribution and storage(3)
86 87 144 140 
Freight(4)
90 80 169 161 
Other segment items(5)
434 429 915 830 
Total cost of sales
1,077 1,135 2,317 2,226 
Gross margin1,145 755 1,891 1,327 
Total other operating expense (income)—net(7)
31 109 (80)230 
Equity in earnings of operating affiliate7 2 13 6 
Operating earnings$1,121 $648 $1,984 $1,103 
_______________________________________________________________________________
(1)Natural gas costs include the impact of realized gains and losses on natural gas derivatives settled during the period.
(2)For both the three months ended June 30, 2026 and 2025, depreciation and amortization does not include $8 million of depreciation and amortization allocated to Corporate, which includes amortization of definite-lived intangible assets. For both the six months ended June 30, 2026 and 2025, depreciation and amortization does not include $16 million of depreciation and amortization allocated to Corporate, which includes amortization of definite-lived intangible assets. For the three months ended June 30, 2026 and 2025, depreciation and amortization does not include $7 million and $8 million, respectively, of amortization related to the Supply Contract liability, which is recognized in net sales. For both the six months ended June 30, 2026 and 2025, depreciation and amortization does not include $15 million of amortization related to the Supply Contract liability, which is recognized in net sales. See Note 3—Revenue Recognition for additional information on the Supply Contract liability.
(3)Distribution and storage costs consist of the cost of freight required to transport finished products from our manufacturing facilities to our distribution facilities and the costs to operate our network of distribution facilities in North America.
(4)Freight costs consist of the costs incurred by us to deliver products from one of our plants or distribution facilities to the customer. Freight costs are generally charged to the customer and included in net sales. In situations when control of the product transfers upon loading and the customer requests that we arrange delivery of the product, the amount of freight included in net sales is considered freight revenue.
(5)Other segment items is primarily comprised of payroll, services, materials and supplies, and utilities at our manufacturing facilities.
(6)Other consists of all other products not included in our Ammonia, Granular Urea, UAN or AN segments. All other products primarily include DEF, urea liquor, nitric acid and aqua ammonia.
(7)Total other operating expense (income)—net for the six months ended June 30, 2026 includes a gain of approximately $170 million related to a litigation settlement, and insurance recoveries of $75 million. See Note 13—Litigation Settlement Gain and Note 6—Property, Plant and Equipment—Net for additional information.
Goodwill The following table shows the carrying amount of goodwill by reportable segment as of June 30, 2026 and December 31, 2025:
AmmoniaGranular UreaUANANOtherTotal
(in millions)
Goodwill as of December 31, 2025$981 $828 $576 $69 $39 $2,493 
Effect of exchange rate changes(1)— — — — (1)
Goodwill as of June 30, 2026$980 $828 $576 $69 $39 $2,492