CF Industries Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>CF Industries Holdings, Inc. has submitted its 2023 annual 10-K filing detailing its financial performance and corporate information.</b>

AI Summary

CF Industries Holdings, Inc. (CF) filed a Annual Report (10-K) with the SEC on February 22, 2024. CF Industries Holdings, Inc. filed its annual report for the fiscal year ending December 31, 2023. The report is a Form 10-K, a comprehensive overview of the company's financial performance and condition. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 2375 Waterview Drive, Northbrook, IL 60062. The filing was made on February 22, 2024.

Why It Matters

For investors and stakeholders tracking CF Industries Holdings, Inc., this filing contains several important signals. This 10-K filing provides investors and analysts with the most up-to-date, audited financial statements and management's discussion and analysis of the company's operations for the 2023 fiscal year. The detailed information within the 10-K is crucial for understanding CF Industries' financial health, strategic direction, and potential risks, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — CF Industries Holdings, Inc. shows moderate risk based on this filing. The company operates in the agriculture chemicals industry, which is subject to cyclical demand, commodity price fluctuations, and regulatory changes, all of which can impact financial performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess CF Industries' performance and outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-02-22 — Filing Date (Date the 10-K was submitted)

Key Players & Entities

• CF Industries Holdings, Inc. (company) — Filer of the 10-K report
• 2375 Waterview Drive, Northbrook, IL 60062 (company) — Business and mailing address

FAQ

Risk Factors

• Market Conditions and Commodity Prices [high — market]: The company's financial results are significantly impacted by global supply and demand for nitrogen fertilizer products and by the prices of natural gas, a key raw material.
• Environmental Regulations [medium — regulatory]: The company is subject to stringent environmental laws and regulations related to air and water emissions, greenhouse gases, and waste management, which can increase operating costs and require capital expenditures.
• Operational Risks and Plant Reliability [medium — operational]: Disruptions at manufacturing facilities due to equipment failure, accidents, or natural disasters could adversely affect production and financial results.

Industry Context

CF Industries Holdings, Inc. is a leading global manufacturer and distributor of nitrogen fertilizer products. The company operates within the agricultural chemicals sector, which is influenced by global food demand, crop prices, and energy costs.

Regulatory Implications

The company is subject to various environmental regulations in the jurisdictions where it operates, including those related to air emissions, water discharge, and greenhouse gas emissions. Compliance with these regulations requires ongoing monitoring and investment.

What Investors Should Do

1. Analyze the detailed financial statements and Management's Discussion and Analysis (MD&A) within the 10-K to understand revenue drivers, cost structures, and profitability trends for 2023.
2. Review the 'Risk Factors' section to identify and assess potential challenges and uncertainties that could impact CF Industries' future performance, such as commodity price volatility and regulatory changes.
3. Compare the 2023 financial results and operational highlights with previous years to identify significant trends and evaluate the company's strategic execution.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-22: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), providing a comprehensive update compared to previous quarterly filings (10-Q) and the prior year's annual report.

Key Financial Figures

• $0.01 — ich registered common stock, par value $0.01 per share CF New York Stock Exchange
• $6.63 b — on product tons generating net sales of $6.63 billion, $11.19 billion and $6.54 billion
• $11.19 billion — generating net sales of $6.63 billion, $11.19 billion and $6.54 billion, respectively. Our p
• $6.54 b — es of $6.63 billion, $11.19 billion and $6.54 billion, respectively. Our principal exe
• $200 m — carbon ammonia. At an estimated cost of $200 million, we are constructing a CO 2 dehyd
• $3 b — these attributes to be in the range of $3 billion, with approximately $2.5 billion
• $2.5 billion — range of $3 billion, with approximately $2.5 billion allocated to the ammonia facility and C
• $500 million — and CCS technologies and approximately $500 million allocated to scalable common infrastruc
• $4.6 b — ilizer products for a purchase price of $4.6 billion, which was paid in cash and share
• $2.8 billion — time CHS made a capital contribution of $2.8 billion to CFN in exchange for membership inter
• $5.2 billion — of the capacity expansion projects was $5.2 billion. Prior to April 2, 2018, Terra Nitroge
• $425 million — terms of the asset purchase agreement, $425 million of the $1.675 billion purchase price, s
• $1.675 billion — purchase agreement, $425 million of the $1.675 billion purchase price, subject to adjustment,
• $1.223 billion — the balance of the purchase price with $1.223 billion of cash on hand. Product Tons and Nutr
• $2.55 b — TRIES HOLDINGS, INC. Gross margin was $2.55 billion, $5.86 billion and $2.39 billion

Filing Documents

• cf-20231231.htm (10-K) — 4003KB
• cf-12312023xex42.htm (EX-4.2) — 32KB
• cf-12312023xex21.htm (EX-21) — 27KB
• cf-12312023xex23.htm (EX-23) — 2KB
• cf-12312023xex311.htm (EX-31.1) — 11KB
• cf-12312023xex312.htm (EX-31.2) — 10KB
• cf-12312023xex321.htm (EX-32.1) — 6KB
• cf-12312023xex322.htm (EX-32.2) — 6KB
• cf-12312023_ex97.htm (EX-97) — 35KB
• image_3a.jpg (GRAPHIC) — 14KB
• 0001324404-24-000008.txt (&nbsp;) — 19394KB
• cf-20231231.xsd (EX-101.SCH) — 98KB
• cf-20231231_cal.xml (EX-101.CAL) — 144KB
• cf-20231231_def.xml (EX-101.DEF) — 622KB
• cf-20231231_lab.xml (EX-101.LAB) — 1366KB
• cf-20231231_pre.xml (EX-101.PRE) — 966KB
• cf-20231231_htm.xml (XML) — 3695KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 28 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 29 Item 3.

Legal Proceedings

Legal Proceedings 29 Item 4. Mine Safety Disclosures 29 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. [Reserved] 29 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 62 Report of Independent Registered Public Accounting Firm 62 Consolidated Statements of Operations 65 Consolidated Statements of Comprehensive Income 66 Consolidated Balance Sheets 67 Consolidated Statements of Equity 68 Consolidated Statements of Cash Flows 69

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 70 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 117 Item 9A.

Controls and Procedures

Controls and Procedures 117 Item 9B. Other Information 120 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 120 PART III Item 10. Directors, Executive Officers and Corporate Governance 120 Item 11.

Executive Compensation

Executive Compensation 120 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 121 Item 13. Certain Relationships and Related Transactions, and Director Independence 121 Item 14. Principal Accountant Fees and Services 121 PART IV Item 15. Exhibits and Financial Statement Schedules 122 Item 16. Form 10-K Summary 122 Table of Contents CF INDUSTRIES HOLDINGS, INC. PART I

BUSINESS

ITEM 1. BUSINESS. Our Company All references to "CF Holdings," "we," "us," "our" and "the Company," refer to CF Industries Holdings, Inc. and its subsidiaries, except where the context makes clear that the reference is to CF Industries Holdings, Inc. only and not its subsidiaries. All references to "CF Industries" refer to CF Industries, Inc., a 100% owned subsidiary of CF Industries Holdings, Inc. References to tons refer to short tons and references to tonnes refer to metric tons. Notes referenced throughout this document refer to consolidated financial statement note disclosures that are found in Item 8. Financial Statements and Supplementary Data—Notes to Consolidated Financial Statements. Our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world's largest – to enable green and low-carbon hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our nitrogen manufacturing complexes in the United States, Canada and the United Kingdom, an extensive storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world's transition to clean energy. Our principal customers are cooperatives, independent fertilizer distributors, traders, wholesalers and industrial users. Our core product is anhydrous ammonia (ammonia), which contains 82% nitrogen and 18% hydrogen. Our nitrogen products that are upgraded from ammonia are 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. Our