Item 6. SELECTED FINANCIAL DATA.

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Item 6. SELECTED FINANCIAL DATA.

The following selected historical financial data as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 have been derived from our audited consolidated financial statements and related notes included elsewhere in this document. The following selected historical financial data as of December 31, 2016, 2015 and 2014 and for the years ended December 31, 2015 and 2014 have been derived from our consolidated financial statements that are not included in this document. The selected historical financial data should be read in conjunction with the information contained in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 8. Financial Statements and Supplementary Data.



	Year ended December 31,
	2018			2017(1)			2016(1)			2015(1)(2)			2014(1)(3)
	(in millions, except per share amounts)
Statement of Operations Data:
Net sales	$	4,429		$	4,130		$	3,685		$	4,308		$	4,743
Cost of sales	3,512			3,696			2,842			2,752			2,953
Gross margin	917			434			843			1,556			1,790
Selling, general and administrative expenses	214			191			173			169			147
Transaction costs	—			—			179			57			—
Other operating—net	(27		)	18			208			92			51
Total other operating costs and expenses	187			209			560			318			198
Gain on sale of phosphate business	—			—			—			—			750
Equity in earnings (losses) of operating affiliates	36			9			(145		)	(35		)	43
Operating earnings	766			234			138			1,203			2,385
Interest expense—net	228			303			195			131			177
Loss on debt extinguishment	—			53			167			—			—
Other non-operating—net	(9		)	3			2			14			21
Earnings (loss) before income taxes and equity in earnings of non-operating affiliates	547			(125		)	(226		)	1,058			2,187
Income tax provision (benefit)	119			(575		)	(68		)	396			773
Equity in earnings of non-operating affiliates—net of taxes	—			—			—			72			23
Net earnings (loss)	428			450			(158		)	734			1,437
Less: Net earnings attributable to noncontrolling interests	138			92			119			34			47
Net earnings (loss) attributable to common stockholders	$	290		$	358		$	(277	)	$	700		$	1,390
Cash dividends declared per common share	$	1.20		$	1.20		$	1.20		$	1.20		$	1.00
Share and per share data:
Net earnings (loss) per share attributable to common stockholders:
Basic	$	1.25		$	1.53		$	(1.19	)	$	2.97		$	5.43
Diluted	1.24			1.53			(1.19		)	2.96			5.42
Weighted-average common shares outstanding:
Basic	232.6			233.5			233.1			235.3			255.9
Diluted	233.8			233.9			233.1			236.1			256.7
Other Financial Data:
Depreciation and amortization	$	888		$	883		$	678		$	480		$	393
Capital expenditures	422			473			2,211			2,469			1,809

CF INDUSTRIES HOLDINGS, INC.



	December 31,
	2018		2017		2016		2015(2)		2014
	(in millions)
Balance Sheet Data:
Cash and cash equivalents	$	682	$	835	$	1,164	$	286	$	1,997
Total assets	12,661		13,463		15,131		12,683		11,200
Customer advances	149		89		42		162		325
Total debt	4,698		4,692		5,778		5,537		4,538
Total equity	5,731		6,684		6,492		4,387		4,572


(1)	As a result of our adoption of Accounting Standards Update (ASU) No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost on January 1, 2018, cost of sales, selling, general and administrative expenses and other non-operating—net were adjusted for the years ended December 31, 2017, 2016, 2015 and 2014 and other operating—net was adjusted for the year ended December 31, 2014. See Note 3—New Accounting Standards for additional information.

(1)

As a result of our adoption of Accounting Standards Update (ASU) No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost on January 1, 2018, cost of sales, selling, general and administrative expenses and other non-operating—net were adjusted for the years ended December 31, 2017, 2016, 2015 and 2014 and other operating—net was adjusted for the year ended December 31, 2014. See Note 3—New Accounting Standards for additional information.


(2)	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.

(2)

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.


(3)	On March 17, 2014, we completed the sale of our phosphate mining and manufacturing business. The selected historical financial data 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.

(3)

On March 17, 2014, we completed the sale of our phosphate mining and manufacturing business. The selected historical financial data 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.

CF INDUSTRIES HOLDINGS, INC.

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