Derivative Liability, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election

[Table of Contents](#i0302cc7c03c44d0c8270f104de834cdb_7)CF INDUSTRIES HOLDINGS, INC.  
The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of March 31, 2022 and December 31, 2021:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | Amounts presented in consolidatedbalance sheets(1) |  | Gross amounts not offset in consolidated balance sheets |  |  |
|   |  | Financialinstruments |  | Cash collateral received (pledged) |  | Netamount |
|   | (in millions) |
| March 31, 2022 |   |  |   |  |   |  |   |
| Total derivative assets | $ | 3  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 3  |  |
| Total derivative liabilities | —  |  |  | —  |  |  | —  |  |  | —  |  |
| Net derivative assets | $ | 3  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 3  |  |
| December 31, 2021 |  |  |  |  |  |  |  |
| Total derivative assets | $ | 16  |  |  | $ | —  |  |  | $ | —  |  |  | $ | 16  |  |
| Total derivative liabilities | (47) |  |  | —  |  |  | —  |  |  | (47) |  |
| Net derivative liabilities | $ | (31) |  |  | $ | —  |  |  | $ | —  |  |  | $ | (31) |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1)We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, the gross amounts recognized and net amounts presented are the same.  
We do not believe the contractually allowed netting, close-out netting or setoff of amounts owed to, or due from, the counterparties to our ISDA agreements would have a material effect on our financial position.  
14.   Noncontrolling InterestWe have a strategic venture with CHS under which CHS owns an equity interest in CFN, a subsidiary of CF Holdings, which represents approximately 11% of the membership interests of CFN. We own the remaining membership interests. Under the terms of CFN’s limited liability company agreement, each member’s interest will reflect, over time, the impact of the profitability of CFN, any member contributions made to CFN and withdrawals and distributions received from CFN. For financial reporting purposes, the assets, liabilities and earnings of the strategic venture are consolidated into our financial statements. CHS’ interest in the strategic venture is recorded in noncontrolling interest in our consolidated financial statements.A reconciliation of the beginning and ending balances of noncontrolling interest and distributions payable to noncontrolling interest in our consolidated balance sheets is provided below. 

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |
|  | 2022 |  | 2021 |
|  |  |  |  |
|   | (in millions) |
| Noncontrolling interest: |  |  |  |
| Balance as of January 1 | $ | 2,830  |  |  | $ | 2,681  |  |
|  |  |  |  |
| Earnings attributable to noncontrolling interest | 168  |  |  | 24  |  |
| Declaration of distributions payable | (247) |  |  | (64) |  |
|  |  |  |  |
|  |  |  |  |
| Balance as of March 31 | $ | 2,751  |  |  | $ | 2,641  |  |
| Distributions payable to noncontrolling interest: |  |  |  |
| Balance as of January 1 | $ | —  |  |  | $ | —  |  |
| Declaration of distributions payable | 247  |  |  | 64  |  |
| Distributions to noncontrolling interest | (247) |  |  | (64) |  |
|  |  |  |  |
| Balance as of March 31 | $ | —  |  |  | $ | —  |  |

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