Impairment charges

[Table of Contents](#i0302cc7c03c44d0c8270f104de834cdb_7)CF INDUSTRIES HOLDINGS, INC.  
3.   Net Earnings Per ShareNet earnings per share were computed as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  |  | Three months ended  March 31, |
|   |  |  |  |  | 2022 |  | 2021 |
|   |  |  |  |  | (in millions, except per share amounts) |
| Net earnings attributable to common stockholders |  |  |  |  | $ | 883  |  |  | $ | 151  |  |
| Basic earnings per common share: |  |  |  |  |   |  |   |
| Weighted-average common shares outstanding |  |  |  |  | 208.6  |  |  | 214.9  |  |
| Net earnings attributable to common stockholders |  |  |  |  | $ | 4.23  |  |  | $ | 0.70  |  |
| Diluted earnings per common share: |  |  |  |  |   |  |   |
| Weighted-average common shares outstanding |  |  |  |  | 208.6  |  |  | 214.9  |  |
| Dilutive common shares—stock-based awards |  |  |  |  | 1.3  |  |  | 1.1  |  |
| Diluted weighted-average common shares outstanding |  |  |  |  | 209.9  |  |  | 216.0  |  |
| Net earnings attributable to common stockholders |  |  |  |  | $ | 4.21  |  |  | $ | 0.70  |  |

Diluted earnings per common share is calculated using weighted-average common shares outstanding, including the dilutive effect of stock-based awards as determined under the treasury stock method. In the computation of diluted earnings per common share, potentially dilutive stock-based awards are excluded if the effect of their inclusion is anti-dilutive. Shares for anti-dilutive stock-based awards not included in the computation of diluted earnings per common share were 1.2 million in the three months ended March 31, 2021.  
4.   InventoriesInventories consist of the following:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | March 31,  2022 |  | December 31,  2021 |
|   | (in millions) |
| Finished goods | $ | 436  |  |  | $ | 358  |  |
| Raw materials, spare parts and supplies | 52  |  |  | 50  |  |
| Total inventories | $ | 488  |  |  | $ | 408  |  |

  
5.   United Kingdom Energy Crisis and Impairment ChargesDuring the third quarter of 2021, the United Kingdom began experiencing an energy crisis that included a substantial increase in the price of natural gas, which impacted our U.K. operations. In the first half of 2021, natural gas prices had increased to levels that were considered high compared to historical prices, and prices then more than doubled within the third quarter of 2021. On September 15, 2021, we announced the halt of operations at both our Ince and Billingham manufacturing facilities in the United Kingdom due to negative profitability driven by the high cost of natural gas. After certain agreements were finalized, our Billingham facility resumed operations. As of the filing of this report, production continues at our Billingham facility and continues to be idled at our Ince facility.In the second half of 2021, the U.K. energy crisis necessitated evaluations of the goodwill and long-lived assets, including definite-lived intangible assets, of our U.K. operations to determine if their fair value had declined to below their carrying value. Based on these analyses, we concluded that declines in fair value had occurred, and we recognized impairment charges of $521 million in 2021, consisting of long-lived and intangible asset impairment charges of $236 million and goodwill impairment charges of $285 million. As a result, we had no remaining goodwill related to our U.K. operations on our consolidated balance sheet as of December 31, 2021.8
