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Press Release: Nutrien Delivers Record Third -16-

Dow Jones Newswires ·  Nov 1, 2021 17:01

1,295 697 2,921 1,989
----------------------------- ---------- -------- --------- --------
Nitrogen sales by product
line
Manufactured product
Ammonia 401 129 994 576
Urea 339 214 985 780
Solutions, nitrates
and sulfates 326 177 852 606
Other nitrogen and
purchased products 133 107 538 444
----------------------------- ---------- -------- --------- --------
1,199 627 3,369 2,406
----------------------------- ---------- -------- --------- --------
Phosphate sales by product
line
Manufactured product
Fertilizer 306 216 836 622
Industrial and feed 146 105 405 342
Other phosphate and
purchased products 50 31 154 105
----------------------------- ---------- -------- --------- --------
502 352 1,395 1,069
----------------------------- ---------- -------- --------- --------
1 Represents elimination for the interest and service fees charged by
Nutrien Financial to Retail branches.
2 Relates to Canpotex Limited ("Canpotex") (Note 8).

NOTE 3 OTHER EXPENSES (INCOME)

                                Three Months Ended    Nine Months Ended 
September 30 September 30
-------------------- -------------------
2021 2020 2021 2020
----------------------------- --------- --------- --------- --------
Integration and restructuring
related costs 8 10 47 38
Foreign exchange loss, net of
related derivatives 1 14 4 1
Earnings of equity-accounted
investees (21) (23) (43) (46)
Bad debt expense (recovery) 7 (18) 22 9
COVID-19 related expenses 16 11 34 30
Loss on disposal of business - 6 - 6
Cloud computing transition
adjustment - - 36 -
Other expenses 39 48 103 149
----------------------------- --------- --------- --------- --------
50 48 203 187
----------------------------- --------- --------- --------- --------

In the second quarter of 2021, the IFRS Interpretations Committee published a final agenda decision clarifying how to recognize certain configuration and customization expenditures related to cloud computing with retrospective application. Costs that do not meet the capitalization criteria should be expensed as incurred. We changed our accounting policy to align with the interpretation and previously capitalized costs that no longer qualify for capitalization were expensed in the current period since they were not material.

NOTE 4 INCOME TAXES

A separate estimated average annual effective income tax rate was determined for each taxing jurisdiction and applied individually to the interim period pre-tax earnings for each jurisdiction.

                                Three Months Ended    Nine Months Ended 
September 30 September 30
-------------------- -------------------
2021 2020 2021 2020
----------------------------- -------- ---------- --------- --------
Income tax expense (recovery) 209 (264) 615 (45)
Actual effective tax rate on
earnings (loss) (%) 23 26 24 14
Actual effective tax rate
including discrete items
(%) 22 31 24 (47)
Discrete tax adjustments that
impacted the tax rate (10) (48) (13) (59)
----------------------------- -------- ---------- --------- --------

Income tax balances within the condensed consolidated balance sheets were comprised of the following:

Income Tax Assets   Balance Sheet         As at September     As at December 
and Liabilities Location 30, 2021 31, 2020
------------------ ------------------ ----------------- -----------------
Income tax assets
Current Receivables 343 83
Non-current Other assets 88 305
Deferred income
tax assets Other assets 233 242
------------------ ------------------ ----------------- -----------------
Total income tax assets 664 630
-------------------------------------- ----------------- -----------------
Income tax
liabilities
Payables and
Current accrued charges 418 48
Other non-current
Non-current liabilities 43 40
Deferred income Deferred income
tax liabilities tax liabilities 3,043 3,149
------------------ ------------------ ----------------- -----------------
Total income tax liabilities 3,504 3,237
-------------------------------------- ----------------- -----------------

NOTE 5 FINANCIAL INSTRUMENTS

Fair Value

Estimated fair values for financial instruments are designed to approximate amounts for which the instruments could be exchanged in a current arm's-length transaction between knowledgeable, willing parties. The valuation policies and procedures for financial reporting purposes are determined by our finance department. There have been no changes to our valuation methods presented in Note 10 of the 2020 annual consolidated financial statements and those valuation methods have been applied in these interim financial statements.

The following table presents our fair value hierarchy for financial instruments carried at fair value on a recurring basis or measured at amortized cost:

                             September 30, 2021                December 31, 2020 
----------------------------------- ---------------------------
Carrying Carrying
Financial assets
(liabilities) Level 1 Level 2 Level 1 Level 2
measured at Amount (1) (1) Level 3 Amount (1) (1)
------------------- -------- ------- ------- ------- -------- ------- --------
Fair value on a
recurring basis
Cash and cash
equivalents 443 - 443 - 1,454 - 1,454
Derivative
instrument
assets 29 - 29 - 45 - 45
Other current
financial
assets -
marketable
securities
(2) 226 32 194 - 161 24 137
Investments at
FVTOCI (3) 279 269 - 10 153 153 -
Derivative
instrument
liabilities (23) - (23) - (48) - (48)
Amortized cost
Current portion
of long-term
debt
Fixed and
floating
rate debt (46) - (46) - (14) - (14)
Long-term debt
Notes and
debentures (9,984) (5,368) (6,059) - (9,994) (3,801) (7,955)
Fixed and
floating
rate debt (110) - (110) - (53) - (53)
------------------- -------- ------- ------- ------- -------- ------- --------
1 During the periods ended September 30, 2021 and December 31, 2020, there were no
transfers between Level 1 and Level 2 for financial instruments measured at fair
value on a recurring basis.
2 Marketable securities consist of equity and fixed income securities. We determine
the fair value of equity securities based on the bid price of identical instruments
in active markets. We value fixed income securities using quoted prices of
instruments with similar terms and credit risk.
3 Investments at fair value through other comprehensive income ("FVTOCI") is
primarily comprised of shares in Sinofert Holdings Ltd.

NOTE 6 SHARE CAPITAL

Share repurchase programs

                                        Maximum     Maximum    Number of 
Commencement Shares for Shares for Shares
Repurchase
Date Expiry Repurchase (%) Repurchased
------- ------------- --------- ---------- ---------- -----------
2019
Normal
Course
Issuer February 27, February
Bid 2019 26, 2020 42,164,420 7 33,256,668
2020
Normal
Course
Issuer February 27, February
Bid 2020 26, 2021 28,572,458 5 710,100
2021
Normal
Course
Issuer
Bid February
(1) March 1, 2021 28, 2022 28,468,448 5 2,460,097
------- -------------- ---------- ---------- ---------- -----------
1 The 2021 normal course issuer bid will expire earlier than the date
above if we acquire the maximum number of common shares allowable or
otherwise decide not to make any further repurchases.
Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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