Net earnings (USD, millions)

Depreciation and amortization (USD, millions)

Stock-based compensation expense (USD, millions)

Unrealized net gain on natural gas derivatives (USD, millions)

Impairment of equity method investment in PLNL (USD, millions)

Gain on sale of emission credits (USD, millions)

Loss on disposal of property, plant and equipment (USD, millions)

Other—net (Operating Activities) (USD, millions)

Net cash provided by operating activities (USD, millions)

Additions to property, plant and equipment (USD, millions)

Purchase of Waggaman ammonia production facility (USD, millions)

Proceeds from sale of property, plant and equipment (USD, millions)

Proceeds from sale of investments held in nonqualified employee benefit trust (USD, millions)

Purchase of emission credits (USD, millions)

Proceeds from sale of emission credits (USD, millions)

Net cash used in investing activities (USD, millions)

Dividends paid on common stock (USD, millions)

Distributions to noncontrolling interest (USD, millions)

Purchases of treasury stock (USD, millions)

Proceeds from issuances of common stock under employee stock plans (USD, millions)

Cash paid for shares withheld for taxes (USD, millions)

Net cash used in financing activities (USD, millions)

Effect of exchange rate changes on cash and cash equivalents (USD, millions)

(Decrease) increase in cash and cash equivalents (USD, millions)

Proceeds from sale of investments held in nonqualified employee benefit trust (Investing Activities) (USD, millions)

Distributions received from unconsolidated affiliate (USD, millions)

Financing fees (USD, millions)

Payments of long-term borrowings (USD, millions)

Other—net (Investing Activities) (USD, millions)

Deferred income taxes (USD, millions)

Undistributed earnings of affiliate—net of taxes (USD, millions)

Accounts receivable—net (USD, millions)

Inventories (USD, millions)

Accrued and prepaid income taxes (USD, millions)

Accounts payable and accrued expenses (USD, millions)

Customer advances (USD, millions)

Cash and cash equivalents at beginning of period (USD, millions)

Cash and cash equivalents at end of period (USD, millions)

d032b9892fa2903333f4bf952a3ce5b2e3946db9fdf26871e558a9bc9bae17af

The significant drop in **cash and cash equivalents** in **Q4 2023** was primarily driven by large outflows from **investing** and **financing activities**. Specifically, the company spent **$1,223 million** on acquiring the Waggaman ammonia production facility and an additional **$188 million** on property, plant, and equipment, while using **$225 million** for treasury stock repurchases and paying **$76 million** in dividends. Although these outflows were partially offset by **$480 million** generated from operating activities and a **$8 million** positive effect from exchange rate changes, they were not enough to prevent a sharp decline from **$3,254 million** to **$2,032 million** during the quarter.  **[0001324404-24-000005_cf-02142024_ex991xearnings.htm:18]** **[0001324404-24-000003_cf-02142024_ex991xearnings.htm:18]** 

Why did Cash and cash equivalents drop so sharply in Q4 2023?

The significant jump in **Property, plant and equipment—net** in Q4 2023 was mainly driven by several factors. **Capital expenditures** of **$499 million** and the **acquisition** of the Waggaman ammonia production facility for **$1,223 million** substantially increased the asset base. In addition, there was a significant rise in **construction in progress**. Although these increases were partially offset by **depreciation and amortization expenses** of **$861 million**, the net effect was an overall increase of **$704 million** in PP&E—net.  **[0001324404-24-000008_cf-20231231.htm:132]** **[0001324404-24-000008_cf-20231231.htm:114]** 

What drove the significant jump in Property, plant and equipment—net in Q4 2023?

The surge in **Intangible assets—net** in Q4 2023 was primarily due to the acquisition of the **Waggaman ammonia production facility**. This acquisition led to the recording of **$526 million** in intangible assets, which was broken down into **$455 million** in customer relationships and **$71 million** related to a favorable personal property tax agreement.  **[0001324404-24-000008_cf-20231231.htm:135]** 

Why did Intangible assets—net surge in Q4 2023?

The rise in **Total assets** in Q4 2023 was driven by multiple factors. **Property, Plant, and Equipment** increased from **$6,437 million** to **$7,141 million** due to capital investments or acquisitions; **Goodwill** grew from **$2,089 million** to **$2,495 million**, partly due to the acquisition of the Waggaman, Louisiana ammonia production facility; **Intangible Assets** saw a substantial jump from **$15 million** to **$538 million** likely related to recognizing new intangible assets or further acquisitions; and **Other Assets** increased from **$771 million** to **$867 million**, reflecting changes in various asset categories such as spare parts and tax-related assets.  **[0001324404-24-000005_cf-02142024_ex991xearnings.htm:17]** **[0001324404-24-000003_cf-02142024_ex991xearnings.htm:17]** **[0001324404-24-000003_cf-02142024_ex991xearnings.htm:8]** **[0001324404-24-000005_cf-02142024_ex991xearnings.htm:8]** **[0001324404-24-000008_cf-20231231.htm:161]** 

What contributed to the rise in Total assets in Q4 2023?

46033aee206f3334c52ec6e9e81b2b58ddfb6939c21d011b75e461620ddc86c5

The sharp drop in **operating earnings** in Q3 2023 was mainly driven by a significant decline in **net sales** (from **$2,321 million** in Q3 2022 to **$1,273 million** in Q3 2023) and a less-than-proportionate decrease in **cost of sales**. This resulted in a lower gross margin. Additionally, while Q3 2022 included a **$87 million** U.K. asset impairment that negatively affected earnings, the absence of such an adjustment in 2023 did not offset the sales decline. There was also a notable **loss of $36 million** in equity earnings from operating affiliates in Q3 2023—compared to a **$20 million gain** in Q3 2022, which included a **$43 million impairment** of an equity method investment in PLNL. These factors combined led to the substantial reduction in operating earnings in Q3 2023.  **[0001324404-23-000022_cf-11012023_ex991xearnings.htm:17]** **[0001324404-23-000025_cf-20230930.htm:41]** 

Why did operating earnings drop so sharply in Q3 2023?

The decline in Q3 2023 was primarily driven by a **sharp drop in average selling prices** across all product segments, which significantly lowered **net sales** (from **$2,321 million** in Q3 2022 to **$1,273 million** in Q3 2023).  **[0001324404-23-000025_cf-20230930.htm:50]**  This effect was only partially offset by **lower natural gas costs** that improved margins in specific segments like UAN, Granular Urea, Ammonia, AN, and others.  **[0001324404-23-000025_cf-20230930.htm:50]** 

What drove the decline in gross margin in Q3 2023?

The **significant drop in EPS in Q3 2023** was mainly driven by a **sharp decline in gross margin** owing to a **49% decrease in average selling prices**, which reduced the gross margin by **$1.22 billion** despite partial offset from lower natural gas costs, and by a **substantial reduction in net earnings** (from **$438 million** in Q3 2022 to **$164 million** in Q3 2023). Additionally, a **lower income tax provision** and changes in **impairment and restructuring charges**—with a notable adjustment in the U.K. operations charges—along with the impact of **share repurchases** affecting the weighted-average common shares outstanding, further contributed to the drop in EPS.  **[0001324404-23-000025_cf-20230930.htm:34]** **[0001324404-23-000025_cf-20230930.htm:2]** 

What led to the significant drop in EPS in Q3 2023?

The **EPS decline in FY 2023** was driven primarily by a **significant reduction in gross margin due to lower average selling prices**—a consequence of reduced global energy costs impacting the market clearing price. Additionally, the decline was influenced by a **lower income tax provision, decreased interest expense**, and a **reduction in net earnings attributable to noncontrolling interest**, although the drop was somewhat mitigated by share repurchases that reduced the number of shares outstanding.  **[0001324404-24-000003_cf-02142024_ex991xearnings.htm:17]** **[0001324404-24-000008_cf-20231231.htm:84]** 

Why did FY 2023 EPS decline so notably compared to FY 2022?

196d8c3ced65da4d3bc6f0415f7d111c9ae325df262c7796db3029a4da3327cb

Net sales (USD, millions)

Cost of sales (USD, millions)

Gross margin (USD, millions)

Selling, general and administrative expenses (USD, millions)

U.K. operations restructuring (USD, millions)

Acquisition and integration costs (USD, millions)

Other operating—net (USD, millions)

Total other operating costs and expenses (USD, millions)

Equity in earnings (losses) of operating affiliate (USD, millions)

Operating earnings (USD, millions)

Interest expense (USD, millions)

Interest income (USD, millions)

Other non-operating—net (USD, millions)

Earnings before income taxes (USD, millions)

Income tax provision (USD, millions)

Net earnings attributable to noncontrolling interest (USD, millions)

Net earnings attributable to common stockholders (USD, millions)

Net earnings per share attributable to common stockholders - Basic (USD)

Net earnings per share attributable to common stockholders - Diluted (USD)

Weighted-average common shares outstanding - Basic (millions)

Weighted-average common shares outstanding - Diluted (millions)

Dividends declared per common share (USD)

7a08366fa43a8b9fc8aaf742d84684aa1245b18432fe1fa00e88ba3efdfc69a5

c6d137f4da9d202a2ad68a14c5c010cc5e1a1d5d025b419e6f86aba289f2a2c0

edae5788b06bd75692e00d1ca8aaed9dacf370ab6e63dd6bd22b94fc9ef0fa79

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

7df4032d21cb5a9e1f099253f7d0ed56faa0ddba9990a00f5f11e10c3e22165b

294a96fb4d6f627bb09055cb69318f7b8d952dec52043108843ee2a3bd3db758

0b3a7962474eef9afad7074f8b958331a2e8605f1397b7679f561a911dc99990

United States

Foreign

- Canada

- North America (excl. U.S. and Canada)

- United Kingdom

- Other foreign

North America

Europe and Other

Total Revenue

1ecbe7bedf3c961d35b960cbf8e3b0271fa0e67382959155f92d8aa5fa6bc8f7

Ammonia

Granular Urea

Other

Phosphate

144c38147c7ceff9442e5e51885aa6cd06814999638e4d9b613188f37e32d8cc

CF Industries Holdings (CF)

Financials