Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document - Document and Entity Information [Abstract] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Trading Symbol | NTR |
Entity Registrant Name | NUTRIEN LTD. |
Entity Central Index Key | 1,725,964 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 608,535,477 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Profit or loss [abstract] | |||
SALES (Note 4) | $ 19,636 | $ 4,547 | |
Freight, transportation and distribution (Note 5) | (864) | (537) | |
Cost of goods sold (Note 5) | (13,380) | (3,316) | |
Gross margin | 5,392 | 694 | |
Selling expenses (Note 5) | (2,337) | (29) | |
General and administrative expenses (Note 5) | (539) | (185) | |
Provincial mining and other taxes (Note 6) | (250) | (146) | |
Impairment of property, plant and equipment (Note 16) | (1,809) | ||
Other expenses (Note 7) | (43) | (125) | |
EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES | 414 | 209 | |
Finance costs (Note 8) | (538) | (238) | |
LOSS BEFORE INCOME TAXES | (124) | (29) | |
Income tax recovery (Note 9) | 93 | 183 | |
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS | (31) | 154 | |
Net earnings from discontinued operations (Note 10) | 3,604 | 173 | |
NET EARNINGS | [1] | $ 3,573 | $ 327 |
NET (LOSS) EARNINGS PER SHARE FROM CONTINUING OPERATIONS (Note 11) | |||
Basic | $ (0.05) | $ 0.18 | |
Diluted | (0.05) | 0.18 | |
NET EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS (Note 11) | |||
Basic | 5.77 | 0.21 | |
Diluted | 5.77 | 0.21 | |
NET EARNINGS PER SHARE FROM CONTINUING AND DISCONTINUED OPERATIONS | |||
Basic | 5.72 | 0.39 | |
Diluted | $ 5.72 | $ 0.39 | |
Weighted average shares outstanding for basic earnings per share ("EPS") (Note 11) | 624,900,000 | 840,079,000 | |
Weighted average shares outstanding for diluted EPS (Note 11) | 624,900,000 | 840,316,000 | |
[1] | All equity transactions were attributable to common shareholders. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of comprehensive income [abstract] | |||
Net earnings | [1] | $ 3,573 | $ 327 |
Items that will not be reclassified to net earnings: | |||
Net actuarial gain on defined benefit plans | 54 | 46 | |
Net fair value (loss) gain on investments | [2] | (99) | 30 |
Items that have been or may be subsequently reclassified to net earnings: | |||
Loss on currency translation of foreign operations | (249) | ||
Other | (8) | 20 | |
OTHER COMPREHENSIVE (LOSS) INCOME | [1] | (302) | 96 |
Comprehensive income | $ 3,271 | $ 423 | |
[1] | All equity transactions were attributable to common shareholders. | ||
[2] | As at December 31, 2018 and 2017, financial instruments measured at fair value through other comprehensive income ("FVTOCI") are comprised of shares in Sinofert Holdings Limited ("Sinofert") and other. The Company's investment in Israel Chemicals Ltd. ("ICL") was classified as held for sale at December 31, 2017 and the divestiture of all equity interests in ICL was completed on January 24, 2018. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
OPERATING ACTIVITIES | |||
Net earnings | [1] | $ 3,573 | $ 327 |
Adjustments to reconcile net earnings to cash provided by operating activities (Note 12) | (383) | 826 | |
Changes in non-cash operating working capital (Note 12) | (1,138) | 72 | |
CASH PROVIDED BY OPERATING ACTIVITIES | 2,052 | 1,225 | |
INVESTING ACTIVITIES | |||
Cash acquired in Merger (Note 3) | 466 | ||
Business acquisitions, net of cash acquired (Note 3) | (433) | ||
Additions to property, plant and equipment (Note 16) | (1,405) | (651) | |
Proceeds from disposal of discontinued operations, net of tax (Note 10) | 5,394 | ||
Purchase of investments | (135) | ||
Other | (1) | ||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 3,887 | (652) | |
FINANCING ACTIVITIES | |||
Finance costs on long-term debt | (21) | (1) | |
(Repayment of) proceeds from short-term debt (Note 22) | (927) | 341 | |
Repayment of long-term debt (Note 23) | (12) | (500) | |
Dividends paid (Note 24) | (952) | (330) | |
Repurchase of common shares (Note 24) | (1,800) | ||
Issuance of common shares (Note 24) | 7 | 1 | |
CASH USED IN FINANCING ACTIVITIES | (3,705) | (489) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (36) | ||
INCREASE IN CASH AND CASH EQUIVALENTS | 2,198 | 84 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 116 | 32 | |
CASH AND CASH EQUIVALENTS, END OF YEAR | 2,314 | 116 | |
Cash and cash equivalents comprised of: | |||
Cash | 1,506 | 14 | |
Short-term investments | 808 | 102 | |
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 2,314 | $ 116 | |
[1] | All equity transactions were attributable to common shareholders. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | [1] | Share Capital [member] | Contributed Surplus [member] | Accumulated Other Comprehensive (Loss) Income ("AOCI") [member] | Accumulated Other Comprehensive (Loss) Income ("AOCI") [member]Net Fair Value Loss on Investments [member] | [2],[3] | Accumulated Other Comprehensive (Loss) Income ("AOCI") [member]Net Actuarial Gain on Defined Benefit Plans [member] | [4] | Accumulated Other Comprehensive (Loss) Income ("AOCI") [member]Loss on Currency Translation of Foreign Operations [member] | Accumulated Other Comprehensive (Loss) Income ("AOCI") [member]Other [member] | Retained Earnings [member] |
Beginning balance at Dec. 31, 2016 | $ 8,199 | $ 1,798 | $ 222 | $ (25) | $ 43 | $ (2) | $ (66) | $ 6,204 | ||||
Net earnings | 327 | 327 | ||||||||||
Other comprehensive (loss) income | 96 | 96 | 30 | $ 46 | 20 | |||||||
Dividends declared | (335) | (335) | ||||||||||
Effect of share-based compensation including issuance of common shares | 10 | 2 | 8 | |||||||||
Shares issued for dividend reinvestment plan | 6 | 6 | ||||||||||
Transfer of net actuarial gain on defined benefit plans | (46) | (46) | 46 | |||||||||
Ending balance at Dec. 31, 2017 | 8,303 | 1,806 | 230 | 25 | 73 | (2) | (46) | 6,242 | ||||
Merger impact (Notes 3 and 11) | 15,904 | 15,898 | 7 | (1) | ||||||||
Net earnings | 3,573 | 3,573 | ||||||||||
Other comprehensive (loss) income | (302) | (302) | (99) | 54 | (249) | (8) | ||||||
Shares repurchased (Note 24) | (1,852) | (998) | (23) | (831) | ||||||||
Dividends declared | (1,273) | (1,273) | ||||||||||
Effect of share-based compensation including issuance of common shares | 51 | 34 | 17 | |||||||||
Transfer of net actuarial gain on defined benefit plans | (54) | $ (54) | 54 | |||||||||
Transfer of net loss on sale of investment | 19 | 19 | (19) | |||||||||
Transfer of net loss on cash flow hedges | 21 | 21 | 21 | |||||||||
Ending balance at Dec. 31, 2018 | $ 24,425 | $ 16,740 | $ 231 | $ (291) | $ (7) | $ (251) | $ (33) | $ 7,745 | ||||
[1] | All equity transactions were attributable to common shareholders. | |||||||||||
[2] | The Company adopted IFRS 9 "Financial Instruments" in 2018 and reclassified available-for-sale investments as financial instruments measured at FVTOCI. | |||||||||||
[3] | The Company divested its equity interests in the investment in ICL on January 24, 2018. The loss on sale of ICL of $(19) was transferred to retained earnings in 2018. The cumulative net unrealized gain at December 31, 2017 was $4. | |||||||||||
[4] | Any amounts incurred during a period were closed out to retained earnings at each period-end. Therefore, no balance exists at the beginning or end of period. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Net Unrealized Gain on Investment Held for Sale | $ 4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets | |||
Cash and cash equivalents | $ 2,314 | $ 116 | |
Receivables (Note 14) | 3,342 | 489 | |
Inventories (Note 15) | 4,917 | 788 | |
Prepaid expenses and other current assets | 1,089 | 72 | |
Current assets other than assets held for sale | 11,662 | 1,465 | |
Assets held for sale (Note 10) | 1,858 | ||
Current assets | 11,662 | 3,323 | |
Non-current assets | |||
Property, plant and equipment (Note 16) | 18,796 | 12,971 | |
Goodwill (Note 17) | 11,431 | 97 | |
Other intangible assets (Note 17) | 2,210 | 69 | |
Investments (Note 21) | 878 | 292 | |
Other assets (Note 18) | 525 | 246 | |
TOTAL ASSETS | 45,502 | 16,998 | |
Current liabilities | |||
Short-term debt (Note 22) | 629 | 730 | |
Current portion of long-term debt (Note 23) | 1,003 | ||
Payables and accrued charges (Note 19) | 6,703 | 836 | |
Current liabilities other than liabilities included in disposal groups classified as held for sale | 8,335 | 1,566 | |
Deferred income tax liabilities on assets held for sale (Note 10) | 36 | ||
Current liabilities | 8,335 | 1,602 | |
Non-current liabilities | |||
Long-term debt (Note 23) | 7,591 | 3,711 | |
Deferred income tax liabilities (Note 9) | 2,907 | 2,205 | |
Pension and other post-retirement benefit liabilities (Note 28) | 395 | 440 | |
Asset retirement obligations and accrued environmental costs (Note 20) | 1,673 | 651 | |
Other non-currentliabilities | 176 | 86 | |
TOTAL LIABILITIES | 21,077 | 8,695 | |
SHAREHOLDERS' EQUITY | |||
Share capital (Note 24) | 16,740 | 1,806 | |
Contributed surplus | 231 | 230 | |
Accumulated other comprehensive (loss) income | (291) | 25 | |
Retained earnings | 7,745 | 6,242 | |
TOTAL SHAREHOLDERS' EQUITY | [1] | 24,425 | 8,303 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 45,502 | $ 16,998 | |
[1] | All equity transactions were attributable to common shareholders. |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Nutrien Ltd. is an integrated ag solutions provider and plays a critical role in helping growers around the globe increase food production in a sustainable manner. The Company’s Retail segment supplies key products and services directly to growers – including crop nutrients, crop protection and seed, as well as agronomic and application services. The Company produces the three essential nutrients – potash, nitrogen and phosphate – required to help farmers grow healthier, more abundant crops. On January 1, 2018, PotashCorp and Agrium combined their businesses in a transaction by way of a plan of arrangement (the “Merger”) by becoming wholly owned subsidiaries of a new parent company named Nutrien Ltd. (collectively with its subsidiaries, known as “Nutrien” or “the Company” except to the extent the context otherwise requires). Nutrien is the world’s largest provider of crop inputs and services. The Company is a corporation organized under the laws of Canada and its registered head office is located at Suite 500, 122—1 st Retail • more than 1,700 retail facilities across the US, Canada, Australia and key areas of South America • capability to formulate and distribute advanced proprietary crop protection products and nutritionals • an innovative integrated digital platform for growers and crop consultants Production (Owned) Potash • six operations in the province of Saskatchewan Nitrogen • eight production facilities in North America: four in the province of Alberta and one located in each of the states of Texas, Georgia, Louisiana and Ohio • one large-scale operation in Trinidad • seven upgrade facilities in North America: three in the province of Alberta and one in each of the states of Washington, Missouri, Georgia and Alabama • 50 percent investment in Profertil S.A. (“Profertil”), a nitrogen producer based in Argentina • 26 percent investment in Misr Fertilizers Production Company S.A.E. (“MOPCO”), a nitrogen producer based in Egypt Phosphate and Sulfate • two mines and processing plants: one in each of the states of North Carolina and Florida • a production facility in the province of Alberta • phosphate feed plants in the states of Illinois, Missouri and Nebraska • an industrial phosphoric acid plant in the state of Ohio Others • investment in Canpotex Ltd. (“Canpotex”), a Canadian potash export, sales and marketing company owned in equal shares by Nutrien and another potash producer • 22 percent investment in Sinofert, a fertilizer supplier and distributor in China • a phosphate processing plant in the state of Louisiana permanently shut down in 2018 • one potash operation in the province of New Brunswick that will be permanently shut down Transportation and Distribution (Leased and Owned) • leased or owned approximately 400 terminals and warehouses relating to the Company’s production operations within North America, some of which have multi-product capability • leased or owned approximately 15,000 railcars and approximately 31, 000 retail vehicles and application equipment in North America • ownership in a joint venture that leases a dry bulk fertilizer port terminal in Brazil allowing for timely delivery of product • leased four vessels for ammonia transportation • owned one multi-purpose vessel used for molten sulfur and phosphoric acid transportation |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Basis of Presentation | BASIS OF PRESENTATION These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The Company has consistently applied the same accounting policies throughout all periods presented, as if these policies had always been in effect, with the exception of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers” which were adopted effective January 1, 2018. Figures for 2017 and prior reflect the historical operations of PotashCorp, the accounting acquirer. The financial statements and related notes of Nutrien in 2018 and beyond reflect the operations of Nutrien. These consolidated financial statements were authorized by the Board of Directors for issue on February 20, 2019. Where an accounting policy is applicable to a specific note to the statements, the policy is described within that note, with the related financial disclosures by major caption as noted in the table included on page 89. Certain of the Company’s accounting policies that relate to the financial statements as a whole, as well as estimates and judgments it has made and how they affect the amounts reported in the consolidated financial statements, are disclosed in Note 32. New standards and amendments or interpretations that were either effective and applied by the Company during 2018 or that were not yet effective are described in Note 32. Sensitivity analyses included throughout the notes should be used with caution as the changes are hypothetical and not reflective of future performance. The sensitivities have been calculated independently of changes in other key variables. Changes in one factor may result in changes in another, which could amplify or reduce certain sensitivities. These consolidated financial statements were prepared under the historical cost basis, except for items that IFRS requires to be measured at fair value. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Business Combinations | BUSINESS COMBINATIONS The Company’s business combinations include the Merger between PotashCorp and Agrium and the acquisition of Retail businesses, including farm centers in North America and Australia, digital agriculture, proprietary products and agricultural services. Assets acquired and liabilities assumed are measured at fair value. Accounting Policies Accounting Estimates and Judgments • The acquisition method is followed. • Consideration is measured at the aggregate of the fair values of assets transferred, liabilities incurred or assumed, and equity instruments issued in exchange for control of the acquiree at the acquisition date. • The acquisition date is the date the Company obtains control over the acquiree. • Identifiable assets acquired and liabilities assumed are generally measured at fair value. • Acquisition-related costs are recognized in net earnings as incurred. • The excess of total consideration for each acquisition plus non-controlling • Purchase price allocation involves judgment in identifying assets acquired and liabilities assumed and estimation of their fair values. • Judgment is required to determine which entity is the acquirer in a merger of equals. In identifying PotashCorp as the acquirer, the companies considered the voting rights of all equity instruments, the intended corporate governance structure of the combined company, the intended composition of senior management of the combined company and the size of each of the companies. In assessing the size of each of the companies, the companies evaluated various metrics. No single factor was the sole determinant in the overall conclusion that PotashCorp is the acquirer for accounting purposes; rather, all factors were considered in arriving at the conclusion. Merger As described in Note 1, PotashCorp and Agrium combined their businesses in a merger of equals. Benefits of the Merger include operating synergies, primarily from the distribution and retail integration, production and expense optimization, and procurement savings. Agrium was a retail distributor of agricultural crop inputs, providing growers with fertilizer, crop protection products, seed, services and solutions. Agrium was also one of the largest manufacturers of fertilizer in the world, producing and marketing all three major crop nutrients – nitrogen, potash and phosphate. On January 1, 2018, the acquisition date, shareholders of PotashCorp received 0.400 common shares of Nutrien for each PotashCorp share held, and shareholders of Agrium received 2.230 common shares of Nutrien for each Agrium share held. The exchange ratios represent the respective closing share prices of each company’s common shares at market close on the New York Stock Exchange (“NYSE”) on August 29, 2016, the last trading day prior to when the companies announced that they were in preliminary discussions regarding a merger of equals, which is consistent with the weighted average prices through that date. The outstanding share-based compensation awards of PotashCorp and Agrium were replaced by Nutrien share-based compensation awards with substantially equivalent terms after adjusting for the applicable exchange ratio (refer to Note 29). Merger and related costs of $170 in 2018 were included in other expenses (2017 – $84). The purchase price was determined based on the number of Agrium shares outstanding and its trading price on December 29, 2017. The share price reflects market participants’ assumptions of the fair value of Agrium as a going concern, which exceeds the fair value of the assets acquired and liabilities assumed. This resulted in the recognition of goodwill in the amount of $11,185, none of which is deductible for income tax purposes. The value of goodwill is primarily attributable to: (a) the location and scale of the Retail distribution network; (b) the proximity of the nitrogen operations to sources of low-cost natural gas; (c) cost synergies associated with the reduction of selling, general and administrative expenses, in addition to the optimization of the rail fleet, distribution and logistics, and procurement; and (d) the assembled workforce, mostly related to the employees in the Retail distribution network. Management completed an assessment in identifying and measuring all the assets acquired and liabilities assumed prior to the recognition of goodwill. This assessment included a thorough review of all internal and external sources of information available on circumstances that existed at the acquisition date. The Company engaged independent valuation experts to assist in determining the fair value of certain assets acquired and liabilities assumed and related deferred income tax impacts. The final values that were allocated to Agrium’s assets and liabilities as at January 1, 2018 based upon fair values were as follows: Cash and cash equivalents $ 466 Receivables 1 2,600 Inventories 3,303 Prepaid expenses and other current assets 1,124 Assets held for sale 2 95 Property, plant and equipment 3 7,459 Goodwill 4 11,185 Other intangible assets 4 2,348 Investments 528 Other assets 5 198 Total assets 29,306 Short-term debt 867 Payables and accrued charges 6 5,239 Long-term debt 4,941 Deferred income tax liabilities 934 Pension and other post-retirement benefit liabilities 142 Asset retirement obligations and accrued environmental costs 6 1,094 Other non-current 79 Total liabilities 13,296 Net assets (consideration for the Merger) $ 16,010 1 Includes trade receivables with gross contractual amount of $2,247, of which $80 are considered to be uncollectible. 2 Relates to the assets held at the Company’s Conda Phosphate operations and North Bend nitric acid operations. The sale was completed on January 12, 2018. 3 Refer to Note 16 for detailed information of property, plant and equipment acquired. 4 Refer to Note 17 for detailed information on other intangible assets acquired and the allocation of goodwill to groups of cash generating units (“CGUs”). 5 Includes deferred income tax assets of $158. 6 Refer to Note 20 for detailed information of asset retirement obligations and accrued environmental costs acquired. Included in payables and accrued charges is $39 related to the current portion of asset retirement obligations and accrued environmental costs. The significant fair value considerations included in the allocation of purchase price are discussed below: Property, Plant and Equipment The fair value was primarily determined using a market approach for land and certain types of personal property, and a replacement cost approach for the remaining property, plant and equipment. The market approach for land and certain types of personal property represents a sales comparison that measures the value of an asset through an analysis of sales and offerings of comparable assets. The replacement cost approach used for all other depreciable property, plant and equipment measures the value of an asset by estimating the cost to acquire or construct comparable assets and adjusts for age and condition of the asset. Other Intangible Assets Other intangible assets primarily consist of acquired customer relationships, brands, proprietary technology, trademarks and trade names. The fair value of customer-related assets was determined using the excess earnings method, an income approach. In determining the fair value of customer relationships, a segment of customers was identified where the sales from these customers are driven by factors such as relationships with the Company and its employees and, as such, fair value was associated with customer relationships. Segmenting customers is a matter of judgment and includes factors such as the size of the customer and customer behavior patterns. Long-Term Debt The fair value of debentures was determined based on comparable debt instruments with similar maturities, adjusted where necessary to Agrium’s credit spread, based on information published by financial institutions. Asset Retirement Obligations and Accrued Environmental Costs Asset retirement obligations for phosphate sites are expected to be paid over the next 68 years, while asset retirement obligations for potash and nitrogen sites are expected to be paid after that time. The fair value for environmental costs was determined using a decision-tree approach of future costs and a risk premium to capture the compensation sought by risk-averse market participants for bearing the uncertainty inherent in the cash flows of the liability. Accrued environmental costs are expected to be paid over a period extending up to 30 years and were discounted using a credit adjusted risk-free rate. Financial Information Related to the Acquired Operations of Agrium The following table provides “gross sales” and “net earnings from continuing operations before income taxes”: 2018 Summary results of acquired operations of Agrium 1 Sales $ 14,551 Net earnings from continuing operations before income taxes $ 546 1 Results of acquired operations included in the Company’s consolidated statements of earnings for 2018. Retail Acquisitions During the year, the Retail segment acquired 53 farm centers in North America and Australia and companies operating within the digital agriculture, proprietary products and agricultural services business. Benefits of the acquisitions include expansion of geographical coverage for the sale of crop input products, increased customer base and workforce, continued growth in the digital agricultural field and synergies between Nutrien and the acquired businesses. The values allocated to the acquired assets and assumed liabilities based upon fair values were as follows as at December 31: 2018 Working capital $ 116 Property, plant and equipment 107 Goodwill 1 197 Other intangible assets 8 Other non-current 14 Other non-current (9 ) Total consideration $ 433 1 Goodwill was calculated as the difference between the amount of consideration transferred and the net identifiable assets acquired. Goodwill resulting from the acquisition is attributed to the assembled workforce, value of potential increase in customer base and synergies between Nutrien and the acquired companies. 2018 Financial information related to business acquisitions 1 Sales from date of acquisition $ 213 Net earnings from continuing operations before income taxes from date of acquisition $ 10 1 Estimated annual sales and earnings before finance costs, income taxes, and depreciation and amortization if acquisitions occurred at the beginning of the year are approximately $441 and $42, respectively. On February 5, 2019, the Company announced the planned acquisition of Actagro, LLC, a developer, manufacturer and marketer of environmentally sustainable soil and plant health products and technologies for an estimated purchase price of $340. Closing of the transaction is subject to US regulatory approval and is expected to be completed in the first half of 2019. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Segment Information | SEGMENT INFORMATION The Company has four reportable operating segments: Retail, Potash, Nitrogen, and Phosphate and Sulfate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise, and provides services directly to growers through a network of farm centers in North and South America and Australia. The Potash, Nitrogen, and Phosphate and Sulfate segments are differentiated by the chemical nutrient contained in the products that each produces. Accounting Policies Accounting Estimates and Judgments Operating Segments Prior to the Merger, the Company identified the Chief Executive Officer as the Chief Operating Decision Maker (“CODM”) under IFRS and used gross margin to measure the segments’ profit or loss. The operating segments were limited to the following: Potash, Nitrogen and Phosphate. The changes in the structure of the Company’s internal organization as a result of the Merger caused the composition of the operating segments to change as well as who the Company identified to be the CODM. Post-Merger, the Company identified the Executive Leadership Team (“ELT”), comprised of officers at the Executive Vice President level and above, as the CODM. The CODM uses net (loss) earnings before finance costs, income taxes, and depreciation and amortization (“EBITDA”) to measure performance and allocate resources to the operating segments. The CODM believes EBITDA to be an important measure as it excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions, rather than the performance of the Company’s day-to-day In 2019, the Company’s CODM reassessed product groupings and decided to evaluate the performance of sulfate products as part of the Nitrogen segment, rather than the Phosphate and Sulfate segment; therefore, future comparative figures will be restated for the change in the composition of the segments, which will result in an increase in the Nitrogen segment and a decrease in the Phosphate and Sulfate segment. For the year ended December 31, 2018, this change will be approximately $121, $42, and $69 in sales, gross margin and EBITDA, respectively. Operating Segments Judgment is used in determining the composition of the reportable segments based on factors including risks and returns, internal organization, and internal reports reviewed by the CODM. Certain expenses are allocated across segments based on an appropriate basis such as production capacities or historical trends. Revenue The Company recognizes revenue when it transfers control over a good or service to a customer. Revenue For product sales which contain volume rebates, revenue is recognized to the extent that it is highly probable that significant reversals will not occur using the most likely method and accumulated experience. Returns and incentives are estimated based on historical and forecasted data, contractual terms and current conditions. Due to the nature of goods and services sold, any single estimate would have only a negligible impact on revenue recognition. Retail Potash, Nitrogen, and Phosphate and Sulfate Transfer of control for the sale of goods At the point in time when the product is: • purchased at the Company’s Retail farm center or • delivered and accepted by customers at their premises At the point in time when the product is: • loaded for shipping or • delivered to the customer Transfer of control for services When the promised service is rendered When the promised service is rendered Retail Sales revenue consists primarily of: • Crop nutrients – sales of dry and liquid macronutrient products which include nitrogen, potash and phosphate, proprietary liquid micronutrient products and nutrient application services; • Crop protection products – sales of various third-party supplier and proprietary products designed to maintain crop quality and manage plant diseases, weeds, and other pests; Accounting Policies Accounting Estimates and Judgments • Seed – various third-party supplier seed brands and proprietary seed product lines; • Merchandise – sales of fencing, feed supplements, livestock-related animal health products, storage and irrigation equipment, and other products; and • Services and other revenues – sales of product application, soil and leaf testing, crop scouting and precision agriculture services, financial services and livestock marketing. Provisions for returns, trade discounts and rebates are deducted from sales revenue. Potash, Nitrogen, and Phosphate and Sulfate The Company manufactures and sells potash, nitrogen, and phosphate and sulfate products. While agriculture is the Company’s primary market, it also produces products for animal nutrition and industrial uses. The Company’s sales revenue is recorded and measured based on the “freight on board” mine, plant, warehouse or terminal price specified in the contract (except for certain vessel sales or specific product sales that are shipped and recorded on a delivered basis), which reflects the consideration the Company expects to be entitled to in exchange for the goods or services, net of any variable consideration (e.g., any trade discounts or estimated volume rebates). Where volume rebates are provided for in customer contracts, the Company estimates revenue at the earlier of the most likely amount of consideration expected to be received or when the consideration becomes fixed. The Company’s customer contracts may provide certain product quality specification guarantees but do not generally provide for refunds or returns. Sales prices are based on North American and International benchmark market prices which are variable and subject to global supply and demand, and competitive factors. Potash Nitrogen Phosphate and Sulfate Products • North American – primarily granular • Offshore (International) – primarily granular and standard • Ammonia, urea, urea ammonium nitrate, and industrial grade ammonium nitrate • Solid fertilizer, liquid fertilizer, industrial products and feed products Sales prices impacted by • North American prices referenced at delivered prices (including transportation and distribution costs) • International prices referenced at the mine site (excluding transportation and distribution costs) • Global energy costs and supply • Global ammonia and sulfur costs and supply Other The Company does not provide general warranties. Intersegment sales are made under terms that approximate market value. Transportation costs are generally recovered from the customer through sales pricing. Seasonality in the Company’s business results from increased demand for products during planting season. Crop input sales are generally higher in spring and fall crop input application seasons. Crop nutrient inventories are normally accumulated leading up to each application season. The Company’s cash collections generally occur after the application season is complete while customer prepayments are concentrated in December and January. Supporting Information Financial information on each of these segments is summarized in the following tables: 2018 Retail Potash Nitrogen Phosphate and Sulfate Others Eliminations Consolidated Sales – third party $ 12,620 $ 2,796 $ 2,651 $ 1,569 $ – $ – $ 19,636 – intersegment 50 220 566 328 – (1,164 ) – Sales – total 12,670 3,016 3,217 1,897 – (1,164 ) 19,636 Freight, transportation and distribution – (349 ) (358 ) (230 ) – 73 (864 ) Net sales 12,670 2,667 2,859 1,667 – (1,091 ) Cost of goods sold (9,635 ) (1,183 ) (2,079 ) (1,539 ) – 1,056 (13,380 ) Gross margin 3,035 1,484 780 128 – (35 ) 5,392 Selling expenses (2,303 ) (14 ) (32 ) (10 ) 22 – (2,337 ) General and administrative expenses (100 ) (10 ) (20 ) (9 ) (400 ) – (539 ) Provincial mining and other taxes – (244 ) (3 ) (1 ) (2 ) – (250 ) Impairment of property, plant and equipment (Note 16) – (1,809 ) – – – – (1,809 ) Other income (expenses) 75 (14 ) 8 (6 ) (106 ) – (43 ) Earnings (loss) before finance costs and income taxes 707 (607 ) 733 102 (486 ) (35 ) 414 Depreciation and amortization 499 404 429 206 54 – 1,592 EBITDA 1 $ 1,206 $ (203 ) $ 1,162 $ 308 $ (432 ) $ (35 ) $ 2,006 Assets 2 $ 17,964 $ 11,710 $ 10,009 $ 2,783 $ 3,678 $ (642 ) $ 45,502 1 EBITDA is a non-IFRS non-IFRS non-IFRS non-IFRS 2 Included in the Nitrogen and Retail segments are $428 and $208 relating to equity-accounted investees, respectively, as described in Note 21. 2017 Potash Nitrogen Phosphate Others Eliminations Consolidated Sales – third party $ 1,868 $ 1,395 $ 1,284 $ – $ – $ 4,547 – intersegment – 74 – – (74 ) – Sales – total 1,868 1,469 1,284 – (74 ) 4,547 Freight, transportation and distribution (235 ) (129 ) (173 ) – – (537 ) Net sales 1,633 1,340 1,111 – (74 ) Cost of goods sold 1 (829 ) (1,084 ) (1,477 ) – 74 (3,316 ) Gross margin 804 256 (366 ) – – 694 Selling expenses (7 ) (14 ) (6 ) (2 ) – (29 ) General and administrative expenses (7 ) (4 ) (4 ) (170 ) – (185 ) Provincial mining and other taxes (146 ) – – – – (146 ) Other expenses (19 ) (3 ) (4 ) (99 ) – (125 ) Earnings (loss) before finance costs and 625 235 (380 ) (271 ) – 209 Depreciation and amortization 232 203 220 37 – 692 EBITDA $ 857 $ 438 $ (160 ) $ (234 ) $ – $ 901 Assets 2 $ 9,756 $ 2,577 $ 1,938 $ 2,727 $ – $ 16,998 1 Included in the Phosphate and Sulfate segment is $305 of impairment of property, plant and equipment as described in Note 16. 2 Included in the total assets relating to the Others segment is $1,858 relating to the investments held for sale as described in Note 10. Financial information by geographic area is summarized in the following tables: Country of Origin 2018 United States Canada Australia Trinidad Other Consolidated Sales to customers outside the Company United States $ 10,488 $ 1,249 $ – $ 153 $ 1 $ 11,891 Canada 208 2,582 – – – 2,790 Australia 2 – 1,679 – – 1,681 Canpotex 1 – 1,657 – – – 1,657 Mexico 70 – – 15 – 85 Trinidad 9 – – 181 – 190 Argentina 9 – – – 378 387 Brazil 38 – – – 74 112 Colombia 9 – – 42 – 51 Other Latin America 20 – – 59 92 171 India 151 – – – – 151 Europe 11 58 67 93 83 312 Other 22 – 100 32 4 158 $ 11,037 $ 5,546 $ 1,846 $ 575 $ 632 $ 19,636 Non-current 2 $ 14,501 $ 17,100 $ 607 $ 570 $ 621 $ 33,399 1 As described in Note 1, Canpotex executed offshore marketing, sales and distribution functions for certain of the Company’s products. Canpotex’s 2018 sales volumes were made to: Latin America 33%, China 18%, India 10%, Other Asian markets 31%, other markets 8% (Note 30). 2 Includes non-current Country of Origin 2017 United States Canada Trinidad Other Consolidated Sales to customers outside the Company United States $ 1,657 $ 784 $ 274 $ – $ 2,715 Canada 194 95 – – 289 Canpotex 1 – 988 – – 988 Mexico 76 – 9 – 85 Trinidad – – 132 – 132 Brazil 26 1 – – 27 Colombia 12 – 36 – 48 Other Latin America 26 – 42 – 68 India 97 – 7 – 104 Other 10 – 81 – 91 $ 2,098 $ 1,868 $ 581 $ – $ 4,547 Non-current 2 $ 3,259 $ 9,501 $ 554 $ 6 $ 13,320 1 Canpotex’s 2017 sales volumes were made to: Latin America 30%, China 18%, India 12%, Other Asian markets 33%, other markets 7% (Note 30). 2 Includes non-current The Company disaggregated revenue from contracts with customers by product line or geographic location for each reportable segment to show how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Year Ended December 31, Retail sales by product line 2018 2017 Crop nutrients $ 4,577 $ – Crop protection products 4,862 – Seed 1,687 – Merchandise 734 – Services and other 810 – $ 12,670 $ – Manufactured Potash sales by geography North America $ 1,359 $ 878 Offshore 1 1,657 990 $ 3,016 $ 1,868 1 Relates primarily to Canpotex (Note 30). Year Ended December 31, Nitrogen sales by product line 2018 2017 Manufactured Product Ammonia $ 1,061 $ 628 Urea 979 330 Solutions and nitrates 729 478 Other nitrogen and purchased products 448 33 $ 3,217 $ 1,469 Phosphate and Sulfate sales by product line Manufactured Product Fertilizer $ 1,141 $ 739 Industrial and Feed 469 537 Ammonium sulfate 96 – Other phosphate and purchased products 191 8 $ 1,897 $ 1,284 |
Nature of Expenses
Nature of Expenses | 12 Months Ended |
Dec. 31, 2018 | |
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Nature of Expenses | NATURE OF EXPENSES Accounting Policies Cost of goods sold represents the cost of purchasing products for resale and costs primarily incurred at, and charged to, producing facilities. The primary components of selling and general and administrative expenses are compensation, other employee costs, depreciation and amortization, other operating leases and fleet fuel, repairs and maintenance. Supporting Information Expenses by nature were comprised of: Cost of Goods Sold Other Total 2018 2017 2018 2017 2018 2017 (Note 33) (Note 33) (Note 33) Purchased and produced raw materials and product for resale 1 $ 11,145 $ 1,724 $ – $ – $ 11,145 $ 1,724 Depreciation and amortization 1,038 655 554 37 1,592 692 Employee costs 2 713 563 1,236 113 1,949 676 Freight (direct and indirect) 303 – 631 372 934 372 Impairment of property, plant and equipment (Note 16) – 305 – – – 305 Offsite warehouse costs 3 – – 69 47 69 47 Railcar and vessel costs 3 – – 131 102 131 102 Merger and related costs – – 170 84 170 84 Other operating leases 38 – 110 – 148 – Fleet fuel, repairs and maintenance – – 183 – 183 – Other 143 69 699 121 842 190 Total $ 13,380 $ 3,316 $ 3,783 $ 876 $ 17,163 $ 4,192 Expenses included in: Freight, transportation and distribution $ 864 $ 537 Cost of goods sold 13,380 3,316 Selling expenses 2,337 29 General and administrative expenses 539 185 Other expenses 43 125 1 Significant expenses include: contract services, supplies, energy, fuel, purchases of raw material (natural gas – feedstock, sulfur, ammonia and reagents) and product for resale (crop nutrients and protection products, and seed). 2 Includes employee benefits and share-based compensation. In 2018, employee costs also include a $157 gain on curtailment of defined benefit pension and other post-retirement benefit plans (“Defined Benefit Plans Curtailment Gain”) as described in Note 28. 3 Includes expenses relating to operating leases. |
Provincial Mining and Other Tax
Provincial Mining and Other Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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Provincial Mining and Other Taxes | PROVINCIAL MINING AND OTHER TAXES Under Saskatchewan provincial legislation, the Company is subject to resource taxes, including the potash production tax and the resource surcharge. 2018 2017 (Note 33) Saskatchewan potash production tax $ 160 $ 95 Saskatchewan resource surcharge and other 90 51 $ 250 $ 146 |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2018 | |
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Other Expenses | OTHER EXPENSES 2018 2017 (Note 33) Merger and related costs $ (170) $ (84) Defined Benefit Plans Curtailment Gain (Note 28) 157 – Foreign exchange gain (loss) 10 (21) Other expenses (40) (20) $ (43) $ (125) |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2018 | |
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Finance Costs | FINANCE COSTS 2018 2017 Interest expense Short-term debt $ 129 $ 9 Long-term debt 372 206 Unwinding of discount on asset retirement obligations (Note 20) 51 17 Interest on net defined benefit pension and other post-retirement plan obligations (Note 28) 15 19 Borrowing costs capitalized to property, plant and equipment (12) (11) Interest income (17) (2) $ 538 $ 238 Borrowing costs capitalized to property, plant and equipment in 2018 were calculated by applying an average capitalization rate of 4.4 percent (2017 – 4.4 percent) to expenditures on qualifying assets. See Note 12 for interest paid. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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Income Taxes | INCOME TAXES This note explains the Company’s income tax recovery and tax-related Accounting Policies Accounting Estimates and Judgments The Company operates in a specialized industry and in several tax jurisdictions. As a result, its income is subject to various rates of taxation. Taxation on items recognized in the consolidated statements of earnings, other comprehensive income (“OCI”) or contributed surplus is recognized in the same location as those items. Taxation on (loss) earnings is comprised of current and deferred income tax. Estimates and judgments to determine the Company’s taxes are impacted by: • the breadth of the Company’s operations; and • global complexity of tax regulations. The final taxes paid, and potential adjustments to tax assets and liabilities, are dependent upon many factors including: • negotiations with taxation authorities in various jurisdictions; • outcomes of tax litigation; and • resolution of disputes arising from federal, provincial, state and local tax audits. Estimates and judgments are used to recognize the amount of deferred tax assets, which: • includes the probability that future taxable profit will be available to use deductible temporary differences, and could be reduced if projected earnings are not achieved or increased if earnings previously not projected become probable. Current income tax is: Deferred income tax is: • the expected tax payable on the taxable earnings for the year; • calculated using rates enacted or substantively enacted at the dates of the consolidated balance sheets in the countries where the Company’s subsidiaries, held for sale investees and equity-accounted investees operate and generate taxable earnings; and • inclusive of any adjustment to income tax payable or recoverable in respect of previous years. • recognized using the liability method; • based on temporary differences between financial statements’ carrying amounts of assets and liabilities and their respective income tax bases; and • determined using tax rates that have been enacted or substantively enacted by the dates of the consolidated balance sheets and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Uncertain income tax positions are accounted for using the standards applicable to current income tax liabilities and assets, i.e., both liabilities and assets are recorded when probable and measured at the amount expected to be paid to (recovered from) the taxation authorities using the Company’s best estimate of the amount. Deferred income tax is not accounted for: • with respect to investments in subsidiaries and equity-accounted investees where the Company is able to control the reversal of the temporary difference and that difference is not expected to reverse in the foreseeable future; and • if arising from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit or loss. The realized and unrealized excess tax benefits from share-based payment arrangements are recognized in contributed surplus as current and deferred tax, respectively. Deferred income tax assets are reviewed at each balance sheet date and amended to the extent that it is no longer probable that the related tax benefit will be realized. Income tax assets and liabilities are offset when: For current income taxes, the Company has: For deferred income taxes: • a legally enforceable right to offset the recognized amounts 1 • the intention to settle on a net basis or realize the asset and settle the liability simultaneously. • the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and • they relate to income taxes levied by the same taxation authority on either: 1) the same taxable entity; or 2) different taxable entities intending to settle current tax liabilities and assets on a net basis, or realize assets and settle liabilities simultaneously in each future period. 2 1 For income taxes levied by the same taxation authority and the authority permits the Company to make or receive a single net payment or receipt. 2 In which significant amounts of deferred tax liabilities or assets expected are to be settled or recovered. Supporting Information Income Taxes included in Net (Loss) Earnings from Continuing Operations The provision for income taxes differs from the amount that would have resulted from applying the Canadian statutory income tax rates to (loss) earnings before income taxes as follows: 2018 2017 (Loss) earnings before income taxes Canada $ (1,195 ) $ 123 United States 619 (271 ) Trinidad 98 95 Australia 96 – Other 258 24 $ (124 ) $ (29 ) Canadian federal and provincial statutory income tax rate 27 % 27 % Income tax at statutory rates $ 33 $ 8 Adjusted for the effect of: Impact of foreign tax rates (US, Trinidad, Australia and other) 58 (25 ) Production-related deductions 15 14 Non-taxable income 10 – Foreign accrual property income (15 ) (3 ) Impact of tax rate changes – 187 Other (8 ) 2 Income tax recovery included in net (loss) earnings from continuing operations $ 93 $ 183 Total income tax recovery, included in net (loss) earnings from continuing operations, was comprised of the following: 2018 2017 Current income tax Tax expense for current year $ (195 ) $ (70 ) Adjustments in respect of prior years 15 (20 ) Total current income tax expense (180 ) (90 ) Deferred income tax Origination and reversal of temporary differences 283 69 Adjustments in respect of prior years (12 ) 20 Impact of tax rate changes – 187 Other 2 (3 ) Total deferred income tax recovery 273 273 Income tax recovery included in net (loss) earnings from continuing operations $ 93 $ 183 Income Tax Balances Income tax balances within the consolidated balance sheets as at December 31 were comprised of the following: Income Tax Assets (Liabilities) Balance Sheet Location 2018 2017 Current income tax assets Current Receivables (Note 14) $ 248 $ 24 Long-term Other assets (Note 18) 36 64 Deferred income tax assets Other assets (Note 18) 216 18 Total income tax assets $ 500 $ 106 Current income tax liabilities Current Payables and accrued charges (Note 19) $ (47 ) $ (16 ) Non-current Other non-current (64 ) (43 ) Deferred income tax liabilities Deferred income tax liabilities (2,907 ) (2,205 ) Total income tax liabilities $ (3,018 ) $ (2,264 ) Deferred Income Taxes In respect of each type of temporary difference, unused tax loss and unused tax credit, the amounts of deferred tax assets and liabilities recognized in the consolidated balance sheets as at December 31 and the amount of the deferred tax recovery (expense) recognized in net (loss) earnings from continuing operations were: Deferred Income Tax Assets Deferred Income Tax 2018 2017 2018 2017 Deferred income tax assets Asset retirement obligations and accrued environmental costs $ 412 $ 120 $ (11 ) $ (56 ) Tax loss and other carryforwards 261 13 198 (105 ) Pension and other post-retirement benefit liabilities 130 124 (44 ) (22 ) Long-term debt 110 – (10 ) – Receivables 58 – 3 – Inventories 54 4 13 (2 ) Derivatives 17 13 (15 ) – Other assets 57 11 (18 ) (11 ) Deferred income tax liabilities Property, plant and equipment (3,218 ) (2,441 ) 132 472 Goodwill and other intangible assets (546 ) (17 ) 31 – Other liabilities (26 ) (14 ) (6 ) (3 ) $ (2,691 ) $ (2,187 ) $ 273 $ 273 Reconciliation of net deferred income tax liabilities: 2018 2017 Balance, beginning of year $ (2,187 ) $ (2,453 ) Merger impact (Note 3) (776 ) – Income tax recovery recognized in net (loss) earnings from continuing operations 273 273 Income tax recovery recognized in net earnings from discontinued operations 17 – Income tax charge recognized in OCI (22 ) (43 ) Reclassified as held for sale – 36 Other 4 – Balance, end of year $ (2,691 ) $ (2,187 ) Amounts and expiry dates of unused tax losses and unused tax credits as at December 31, 2018 were: Amount Expiry Date Unused operating losses $ 1,083 2020 – Indefinite Unused capital losses $ 795 Indefinite Unused investment tax credits $ 46 2019 – 2037 The unused tax losses and credits with no expiry dates can be carried forward indefinitely. As at December 31, 2018, the Company had $932 of tax losses for which it did not recognize deferred tax assets. The Company has determined that it is probable that all recognized deferred tax assets will be realized through a combination of future reversals of temporary differences and taxable income. The aggregate amount of temporary differences associated with investments in subsidiaries and equity-accounted investees, for which deferred tax liabilities have not been recognized, as at December 31, 2018 was $8,710 (2017 – $5,252). |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
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Discontinued Operations | DISCONTINUED OPERATIONS Held for Sale and Discontinued Operations Accounting Policies Accounting Estimates and Judgments The Company classifies assets and liabilities as held for sale if it is highly probable that the carrying value will be recovered through a sale transaction within one year rather than through continuing use. Discontinued operations represent a component of the Company’s business that either has been disposed of, or is classified as held for sale, and represents a separate major line of business or geographic area of operations or is a part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations. The Company’s significant policies include: • cessation of equity accounting for associates and joint ventures at the date the investments were classified as held for sale; • measurement of assets at the lower of carrying amount and fair value less costs to sell, with the exception of financial assets measured at FVTOCI; • unrealized gains and losses on remeasurement of investments measured at FVTOCI are recorded, net of related income taxes, to OCI; • dividends received are recorded on the consolidated statements of earnings; and • the comparative statements of earnings and OCI are restated as if the operation had been discontinued from the start of the comparative year. Expected cost to sell the investments requires estimation, which is based on several factors such as historical trends of similar types of investments sold, the percentage of investments held relative to the total shares in circulation and the type of the investment. Judgment involves determining: • whether the highly probable standard is met and the date when equity accounting ceases; and • if the business component for sale or disposal meets the criteria of a discontinued operation. The Company’s investments in SQM, ICL and APC were classified as held for sale and as discontinued operations in December 2017, due to regulatory requirements to dispose of these investments in connection with the Merger. As of December 31, 2018, the Company completed all required divestitures and retained no residual interests as outlined below: For the year ended December 31, 2018 Proceeds 1 Gain (Loss) on Gain (Loss) on Taxes AOCI Net Earnings and Retained Earnings Shares in SQM $ 5,126 $ 4,278 $ 3,366 $ – $ 3,366 Shares in ICL 685 (19 ) (19 ) (19 ) – Shares in APC 501 121 126 – 126 Conda Phosphate operations 98 – – – – Total Sale $ 6,410 $ 4,380 $ 3,473 $ (19 ) $ 3,492 1 Proceeds are net of commissions. Supporting Information Assets and liabilities held for sale as at December 31, 2017 were comprised of: 2017 ASSETS Investments in SQM and APC $ 1,146 Investment in ICL 708 Current tax asset 4 Assets held for sale $ 1,858 LIABILITIES Payables and accrued charges $ – Deferred income tax liabilities 36 Liabilities on assets held for sale $ 36 Net earnings from discontinued operations for the years ended December 31 were as follows: 2018 2017 1 Gain on disposal of investments in SQM and APC $ 4,399 $ – Dividend income of SQM, APC and ICL 2 156 24 Share in earnings of SQM and APC 2 – 151 Income tax expense 3 (951 ) (2 ) Net earnings from discontinued operations $ 3,604 $ 173 1 Share of earnings, dividend income and income tax recovery pertaining to these investments were reclassified from loss before income taxes and income tax recovery to net earnings from discontinued operations on the consolidated statements of earnings. 2 The Company’s investments in SQM and APC were classified as discontinued operations in the later part of 2017 and, as a result, equity accounting in respect of these investments ceased. 3 For 2018, income tax (expense) recovery is comprised of $(912) relating to the disposals of SQM shares, including the repatriation of the net proceeds, and $(39) relating to earnings from discontinued operations ($(18) for the planned repatriation of the remaining excess cash available in Chile, $(26) for the repatriation of dividend income received from SQM and $5 relating to APC). Cash flows from discontinued operations for the year ended December 31 were as follows: 2018 2017 Cash provided by operating activities Dividends from discontinued operations $ 156 $ 176 Income tax related to the disposal of discontinued operations (26 ) – Dividends from discontinued operations, net of tax $ 130 $ 176 Cash provided by investing activities Proceeds from disposal of discontinued operations 1 $ 6,371 $ – Income tax related to the disposal of discontinued operations (977 ) – Proceeds from disposal of discontinued operations, net of tax $ 5,394 $ – 1 Excludes a receivable of $39 to be collected in 2019. |
Net Earnings per Share
Net Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
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Net Earnings per Share | NET EARNINGS PER SHARE Basic net earnings per share provides a measure of the interests of each ordinary common share in the Company’s performance over the year. Diluted net earnings per share adjusts basic net earnings per share for the effects of all dilutive potential common shares. 2018 1 2017 WEIGHTED AVERAGE NUMBER OF COMMON SHARES 624,900,000 840,079,000 Dilutive effect of stock options 2 – 3 199,000 Dilutive effect of share-settled performance share units (“PSUs”) 4 – 3 38,000 Weighted average number of diluted common shares 624,900,000 840,316,000 1 The number of shares, stock options and share-settled PSUs reflect the Merger. Refer to Note 3 for details. 2 Diluted effect of stock options assumes exercise of all stock options with exercise prices at or below the average market price for the year would increase the denominator, and the denominator would be decreased by the number of shares that the Company could have repurchased if it had assumed proceeds from the exercise of stock options to repurchase them on the open market at the average share price for the year. 3 The diluted weighted average share calculations excluded an additional 658,000 stock options and 137,000 equity-settled PSUs due to their anti-dilutive 4 Diluted effect of PSUs assumes the denominator would be increased by the total of the additional share-settled PSUs that could be issued if vesting criteria are achieved. Options excluded from the calculation of diluted net earnings per share due to the option exercise prices being greater than the average market price of common shares were as follows: 2018 2017 Number of options excluded 5,721,656 12,304,351 Performance option plan years fully excluded 2009-2015 2008-2015, 2017 Stock option plan years fully excluded 2015, 2018 – |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2018 | |
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Consolidated Statements of Cash Flows | CONSOLIDATED STATEMENTS OF CASH FLOWS Accounting Policy Highly liquid investments with a maturity of three months or less from the date of purchase are considered to be cash equivalents. Supporting Information For the years ended December 31 2018 2017 (Note 33 ) RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES Net earnings $ 3,573 $ 327 Adjustments to reconcile net earnings to cash provided by operating activities Gain on sale of investments in SQM and APC (4,399 ) – Income tax related to the sale of the investment in SQM 977 – Depreciation and amortization 1,592 692 Impairment of property, plant and equipment (Note 16) 1,809 305 Share-based compensation (Note 29) 116 11 Recovery of deferred income tax (290 ) (273 ) Other long-term liabilities and miscellaneous (188 ) 91 Subtotal of adjustments (383 ) 826 CHANGES IN NON-CASH OPERATING WORKING CAPITAL Receivables (153 ) 47 Inventories (887 ) (10 ) Prepaid expenses and other current assets 561 (13 ) Payables and accrued charges (659 ) 48 Subtotal of changes in non-cash (1,138 ) 72 CASH PROVIDED BY OPERATING ACTIVITIES $ 2,052 $ 1,225 SUPPLEMENTAL CASH FLOWS DISCLOSURES Interest paid $ 507 $ 198 Income taxes paid $ 1,155 $ 83 The following is a summary of changes in liabilities arising from financing activities: Short-Term Debt and Current Portion of Long-Term Debt 1 Long-Term Debt Total Balance – December 31, 2017 $ 730 $ 3,711 $ 4,441 Debt acquired in Merger (Note 3) 878 4,930 5,808 Cash flows 1 (927 ) (12 ) (939 ) Reclassifications 1,023 (1,023 ) – Foreign currency translation and other non-cash changes (72 ) (15 ) (87 ) Balance – December 31, 2018 $ 1,632 $ 7,591 $ 9,223 Balance – December 31, 2016 $ 884 $ 3,707 $ 4,591 Cash flows 1 (159 ) (1 ) (160 ) Non-cash 5 5 10 Balance – December 31, 2017 $ 730 $ 3,711 $ 4,441 1 Cash inflows and cash outflows arising from short-term debt transactions are presented on a net basis. |
Financial Instruments and Relat
Financial Instruments and Related Risk Management | 12 Months Ended |
Dec. 31, 2018 | |
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Financial Instruments and Related Risk Management | FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT Outlined below are the Company’s financial instruments, related risk management objectives, policies and exposure, sensitivity and monitoring strategies to financial risks. Accounting Policies Accounting Estimates and Judgments Financial instruments are classified and measured as follows: Judgment is required to determine whether the right to offset is legally enforceable. Fair Value FVTOCI Financial Assets and 1 For derivatives or embedded derivatives, the most Instrument type Cash and cash equivalents and derivatives Equity investments not held for trading Receivables, short-term debt, payables and accrued charges, long-term debt, other long-term debt instruments Measurement Fair value Fair value Amortized cost Fair value gains and losses Profit or loss OCI 2 – Interest and dividends Profit or loss Profit or loss Profit or loss: effective interest rate Impairment of assets – – Profit or loss Foreign exchange Profit or loss OCI Profit or loss Transaction costs Profit or loss OCI Included in cost of instrument 1 Amortized cost is applied if the objective of the business model for the instrument or group of instruments is to hold the asset to collect the contractual cash flows and the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest. 2 For equity investments not held for trading, the Company may make an irrevocable election at initial recognition to recognize changes in fair value through OCI rather than profit or loss. The Company made this election for its investments in ICL, Sinofert and certain equity investments as the investments are held for strategic purposes. Accounting Policies Accounting Estimates and Judgments Financial instruments are recognized at trade date when the Company commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or the Company has transferred them, and all the risks and rewards of ownership have been substantially transferred. Derivatives are used to lock in commodity prices and exchange rates. For designated and qualified cash flow hedges: • the effective portion of the change in the fair value of the derivative is accumulated in OCI; • when the hedged forecast transaction occurs, the related gain or loss is removed from AOCI and included in the cost of inventory; • the hedging gain or loss included in the cost of inventory is recognized in earnings when the product containing the hedged item is sold or becomes impaired; and • the ineffective portions of hedges are recorded in net earnings in the current period. The Company also assesses whether the natural gas derivatives used in hedging transactions are expected to be or were highly effective, both at the hedge’s inception and on an ongoing basis, in offsetting changes in fair values of hedged items. Hedge effectiveness related to the Company’s New York Mercantile Exchange (“NYMEX”) natural gas hedges is assessed on a prospective and retrospective basis using regression analyses. The Company’s Alberta Energy Company (“AECO”) natural gas hedges are assessed using a qualitative assessment. Potential sources of ineffectiveness are changes in timing of forecast transactions, changes in volume delivered or changes in credit risk of the Company or the counterparty. Financial assets and financial liabilities are offset and the net amount is presented in the consolidated balance sheets when the Company: • currently has a legally enforceable right to offset the recognized amounts; and • intends either to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. See Note 32 for discussion related to the policies, estimates and judgments for fair value measurements. Supporting Information Financial Risks The Company is exposed in varying degrees to a variety of financial risks from its use of financial instruments: credit risk, liquidity risk and market risk. The source of risk exposure and how each is managed are outlined below. Credit Risk The Company’s exposure to credit risk on its cash and cash equivalents, receivables (excluding taxes) and derivative instrument assets is the carrying amount of each instrument on the consolidated balance sheets. Maximum exposure to credit risk as at December 31: 2018 2017 Cash and cash equivalents $ 2,314 $ 116 Receivables 1 3,094 465 Other current assets – derivatives 5 7 Other non-current – 3 $ 5,413 $ 591 1 Excluding income tax receivable. Credit risk is managed through policies applicable to the following assets: Acceptable Minimum Counterparty Credit Ratings Exposure Thresholds by Counterparty Daily Counterparty Settlement Based on Prescribed Credit Thresholds Counterparties to Contracts are Investment-Grade Quality Cash and Cash Equivalents X X Natural Gas Derivatives X X X Foreign Currency Derivatives X Credit risk on trade receivables for the Company’s Retail, Potash, Nitrogen, and Phosphate and Sulfate segments is managed through a credit management program whereby: • credit approval policies and procedures are in place to guide the granting of credit to new customers as well as its continued extension to existing customers; • existing customer accounts are reviewed every 12-24 months, • credit is extended to international customers based upon an evaluation of both customer and country risk; • the credit period on sales is generally 15 and 30 days for wholesale fertilizer customers, 30 days for industrial and feed customers, 30-90 • credit agency reports, where available, and an assessment of other relevant information such as current financial statements and/or credit references are used before assigning credit limits to customers. Those that fail to meet specified benchmark creditworthiness may transact with the Company on a prepayment basis or provide another form of credit support that the Company approves. The Company’s trade receivables include a concentration in Retail operations in Australia for advances to the customers to purchase crop inputs and livestock. The Company mitigates risk in these receivables by obtaining security over livestock. In the Company’s Retail operations in Western Canada, credit risk in accounts receivable is mitigated through an agency agreement with a Canadian financial institution wherein the financial institution provides credit to qualifying customers to assist in financing their crop input purchases. Through the agency agreement, which expires in 2021, customers have loans directly with the financial institution while the Company has only a limited recourse involvement to the extent of an indemnification of the financial institution for 52 percent of its future bad debts to a maximum of 5 percent of the qualified customer loans. Outstanding customer credit with the financial institution was $571 at December 31, 2018, which is not recognized in the Company’s consolidated balance sheets. Historical indemnification losses on this arrangement have been negligible, and the average aging of the customer loans with the financial institution is current. Liquidity Risk Liquidity risk arises from the Company’s general funding needs and the management of its assets, liabilities and optimal capital structure. The Company manages its liquidity risk to maintain sufficient liquid financial resources to fund its operations and meet its commitments and obligations in a cost-effective manner. In managing its liquidity risk, the Company has access to a range of funding options. It has established an external borrowing policy with the following objectives: • maintain an optimal capital structure; • maintain investment-grade credit ratings that provide ease of access to the debt capital and commercial paper markets; • maintain sufficient short-term credit availability; and • maintain long-term relationships with a sufficient number of high-quality and diverse lenders. The table below outlines the Company’s available credit facilities as at December 31, 2018. Total Amount Amount Outstanding and Committed Amount Available Unsecured revolving term credit facility $ 4,500 $ 391 $ 4,109 Uncommitted revolving demand facility 500 – 500 Accounts receivable securitization program 500 – 500 Other credit facilities 520 238 282 The following maturity analysis of the Company’s financial liabilities and gross settled derivative contracts (for which the cash flows are settled simultaneously) is based on the expected undiscounted contractual cash flows from the date of the consolidated balance sheets to the contractual maturity date. 2018 Carrying Amount Contractual Cash Flows Within 1 1 to 3 Years 3 to 5 Years Over 5 Years Short-term debt 1 $ 629 $ 629 $ 629 $ – $ – $ – Payables and accrued charges 2 4,695 4,695 4,695 – – – Current portion of long-term debt and Long-term debt 1 8,594 12,818 1,362 1,121 1,583 8,752 Derivatives 71 72 44 19 9 – $ 13,989 $ 18,214 $ 6,730 $ 1,140 $ 1,592 $ 8,752 1 Contractual cash flows include contractual interest payments related to debt obligations. Interest rates on variable rate debt are based on prevailing rates as at December 31, 2018. Disclosures regarding offsetting of certain debt obligations are provided below. 2 Excludes non-financial Market Risk Market risks, where financial instrument fair values can fluctuate due to changes in market prices, include foreign exchange risk, interest rate risk and price risk (related to commodity and equity securities). Foreign Exchange Risk To manage foreign exchange risk (primarily related to Canadian operating and capital expenditures, certain subsidiaries denominated in currencies other than the functional currency of an operation, taxes and dividends), the Company may enter into foreign currency derivatives. Treasury risk management policies allow such exposures to be hedged within certain prescribed limits for both forecast operating and capital expenditures. The risk management policy is to manage the earnings impact that could occur from a reasonably possible strengthening or weakening of the US dollar. The foreign currency derivatives are not currently designated as hedging instruments for accounting purposes. The Company had no material exposure to foreign exchange risk that could affect the Company’s net earnings as at December 31, 2018 and 2017. Interest Rate Risk Fluctuations in interest rates impact the future cash flows and fair values of various financial instruments. Interest rate risk on debt is addressed by: • using a portfolio of fixed and floating rate instruments; • aligning current and long-term assets with demand and fixed-term debt; • monitoring the effects of market changes in interest rates; and • using interest rate swaps, if desired. Related to interest rate risk on investments in marketable securities, the Company’s primary objectives are to: • ensure the security of principal amounts invested; • provide for an adequate degree of liquidity; and • achieve a satisfactory return. Treasury risk management policies specify investment parameters including eligible types of investment, maximum maturity dates, maximum exposure by counterparty and minimum credit ratings. The Company had no material exposure to interest rate risk on its financial instruments and earnings as at December 31, 2018 and 2017. Price Risk Commodity price risk exists on the Company’s natural gas derivative instruments. Its natural gas strategy is to diversify its forecast gas volume requirements, including a portion of annual requirements purchased at spot market prices, a portion at fixed prices (up to 10 years) and a portion indexed to the market price of ammonia. Its objective is to acquire a reliable supply of natural gas feedstock and fuel on a location-adjusted, cost-competitive basis. Price risk also exists for exchange-traded equity securities measured at FVTPL or FVTOCI. The Company had no material exposure to price risk on its financial instruments as at December 31, 2018 and 2017. 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 Financial instruments included in the consolidated balance sheets are measured either at fair value or amortized cost. The tables below explain the valuation methods used to determine the fair value of each financial instrument and its associated level in the fair value hierarchy. Financial Instruments Measured at Fair Value Fair Value Method Cash and cash equivalents Carrying amount (approximation to fair value assumed due to short-term nature) Equity securities Closing bid price of the common shares as at the balance sheet date Debt securities Closing bid price of the debt (Level 2) as at the balance sheet date Foreign currency derivatives not traded in an active market Quoted forward exchange rates (Level 2) as at the balance sheet date Financial Instruments Measured at Fair Value Fair Value Method Foreign exchange forward contracts, swaps and options and natural gas swaps not traded in an active market A discounted cash flow model 1 Market comparison 2 1 Inputs included contractual cash flows based on prices for natural gas futures contracts, fixed prices and notional volumes specified by the swap contracts, the time value of money, liquidity risk, the Company’s own credit risk (related to instruments in a liability position) and counterparty credit risk (related to instruments in an asset position). Futures contract prices used as inputs in the model were supported by prices quoted in an active market and therefore categorized in Level 2. 2 Inputs include current market and contractual prices, forward pricing curves, quoted forward prices, basis differentials, volatility factors and interest rates and therefore categorized in Level 2. Financial Instruments Measured at Amortized Cost Fair Value Method Receivables, short-term debt and payables and accrued charges Carrying amount (approximation to fair value assumed due to short-term nature) Long-term debt Quoted market prices (Level 1 or 2 depending on the market liquidity of the debt) Other long-term debt instruments Carrying amount The following table presents the Company’s fair value hierarchy for financial assets and financial liabilities carried at fair value on a recurring basis or measured at amortized costs: Fair Value Measurements at Reporting 2018 Carrying Amount of Quoted Prices in for Identical Assets 1 Significant Other Inputs (Level 2) 1 Financial instruments measured at fair value on a recurring basis Derivative instrument assets $ 5 $ – $ 5 Other current financial assets – marketable securities 2 97 12 85 Investments at FVTOCI 3 186 186 – Derivative instrument liabilities (71 ) – (71 ) Financial instruments measured at amortized cost Cash and cash equivalents $ 2,314 $ – $ 2,314 Current portion of long-term debt Senior notes and debentures 4 (995 ) – (1,009 ) Fixed and floating rate debt (8 ) – (8 ) Long-term debt Senior notes and debentures 4 (7,569 ) (1,004 ) (6,177 ) Fixed and floating rate debt (22 ) – (22 ) 2017 Derivative instrument assets Natural gas derivatives $ 9 $ – $ 9 Investments at FVTOCI 3 970 970 – Derivative instrument liabilities Natural gas derivatives (64 ) – (64 ) Long-term debt Senior notes 4 (3,707 ) (490 ) (3,555 ) 1 During the period ended December 31, 2018, there were no transfers between Level 1 and Level 2 for financial instruments measured at fair value. The Company’s policy is to recognize transfers at the end of the reporting period. 2 Marketable securities consist of equity and fixed income securities. The Company determines the fair value of equity securities based on the bid price of identical instruments in active markets. The Company values fixed income securities using quoted prices of instruments with similar terms and credit risk. 3 Investments at FVTOCI are comprised of shares in Sinofert and other (Note 21) (2017 – ICL, Sinofert and other). The Company’s investment in ICL was sold during 2018 (Note 10). 4 Carrying amount of liability includes net unamortized debt issue costs. 2018 2017 Financial assets (liabilities) Gross Offset Net Presented Gross Offset Net Presented Derivative instrument assets Natural gas derivatives 1 $ 31 $ (27 ) $ 4 $ 11 $ (2 ) $ 9 Derivative instrument liabilities Natural gas derivatives 2 (92 ) 26 (66 ) (74 ) 10 (64 ) Other long-term debt instruments 3 (150 ) 150 – (150 ) 150 – $ (211 ) $ 149 $ (62 ) $ (213 ) $ 158 $ (55 ) 1 Cash margin deposits of $NIL (2017 – $(1)) were held related to legally enforceable master netting arrangements. 2 Cash margin deposits of $18 (2017 – $38) were placed with counterparties related to legally enforceable master netting arrangements. 3 Back-to-back non-payment Non-compliance Natural gas derivatives outstanding: 2018 2017 Notional 1 Maturities Average Price 2 Fair Value Notional 1 Maturities Average 2 Fair Value Natural gas NYMEX swaps 22 2019 – 2022 $ 4.26 $ (35 ) 27 2018 – 2022 $ 4.89 $ (54 ) AECO swaps 3 26 2019 $ 1.92 $ (25 ) – – – $ – 1 In millions of British thermal units (“MMBtu”). 2 US dollars per MMBtu. 3 AECO swaps are only included in 2018 as a result of the Merger as described in Note 3. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2018 | |
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Receivables | RECEIVABLES Trade accounts receivable mainly consist of amounts owed to Nutrien by its customers, the largest individual customer being the related party, Canpotex. Accounting Policies Accounting Estimates and Judgments Trade accounts receivable are recognized initially at fair value and subsequently measured at amortized cost less provision for impairment of trade accounts receivable. When a trade account receivable is uncollectible, it is written off against the provision. Subsequent recoveries of amounts previously written off are credited to the consolidated statements of earnings. Vendors may offer various incentives to purchase products for resale. Vendor rebates and prepay discounts are accounted for as a reduction of the prices of the suppliers’ products. Rebates based on the amount of materials purchased reduce cost of goods sold as inventory is sold. Rebates are offset based on sales volumes to cost of goods sold if the rebate has been earned based on sales volumes of products. Rebates that are probable and can be reasonably estimated are accrued. Rebates that are not probable or estimable are accrued when certain milestones are achieved. Rebates not covered by binding agreements or published vendor programs are accrued when conclusive documentation of right of receipt is obtained. Determining when amounts are deemed uncollectible requires judgment. Estimation of rebates can be complex in nature as vendor arrangements are diverse. The amount of the accrual is determined by analyzing and reviewing historical trends to apply negotiated rates to estimated and actual purchase volumes. Estimated amounts accrued throughout the year could also be impacted if actual purchase volumes differ from projected volumes. Supporting Information December 31, 2018 December 31, 2017 Trade accounts – third parties $ 2,628 $ 314 – Canpotex (Note 30) 208 82 Less provisions for impairment of trade accounts receivable (90 ) (6 ) 2,746 390 Rebates 169 – Income taxes (Note 9) 248 24 Other non-trade 179 75 $ 3,342 $ 489 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
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Inventories | INVENTORIES Inventories consist of Retail inventory (crop nutrients, crop protection products, seed and merchandise products) and products from the Potash, Nitrogen, and Phosphate and Sulfate segments in varying stages of the production process. Accounting Policies Accounting Estimates and Judgments Inventories are valued monthly at the lower of cost and net realizable value. Costs are allocated to inventory using the weighted average cost method and include: direct acquisition costs, direct costs related to units of production and a systematic allocation of fixed and variable production overhead, as applicable. Net realizable value is based on: Judgment is used to allocate production overhead to inventories and to determine net realizable value, including the appropriate measure and inputs of a combination of interrelated demand and supply variables. For products purchased for resale, finished products, intermediate products and raw materials For materials and supplies • selling price of the finished product (in ordinary course of business); • less the estimated costs of completion; and • less the estimated costs to make the sale. • replacement cost. A writedown is recognized if carrying amount exceeds net realizable value and may be reversed if the circumstances which caused it no longer exist. Supporting Information December 31, December 31, Purchased for resale $ 3,545 $ – Finished products 501 260 Intermediate products 218 202 Raw materials 275 62 Materials and supplies 378 264 $ 4,917 $ 788 Inventories expensed to cost of goods sold during the year was $13,083 (2017 – $2,791). |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
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Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT The majority of the Company’s tangible assets are the buildings, machinery and equipment used to produce or distribute its products and render its services. These assets are depreciated over their estimated useful lives. Accounting Policies Accounting Estimates and Judgments Property, plant and equipment (which include certain mine development costs, pre-stripping Cost includes all expenditures directly attributable to bringing the asset to the location and installing it in working condition for its intended use, including: • additions to, and betterments and renewals of, existing assets; • borrowing costs incurred during construction using a capitalization rate based on the weighted average interest rate of the Company’s outstanding debt; and • a reduction for income derived from the asset during construction. Each component of an item of property, plant and equipment with a cost that is significant in relation to the item’s total cost is depreciated separately. When the cost of replacing part of an item of property, plant and equipment is capitalized, the carrying amount of the replaced part is derecognized. The cost of major inspections and overhauls is capitalized and depreciated over the period until the next major inspection or overhaul. Maintenance and repair expenditures that do not improve or extend productive life are expensed in the period incurred. Environmental costs related to current operations are also capitalized if: • property life is extended; • capacity is increased; • contamination from future operations is mitigated or prevented; or • related to legal or constructive asset retirement obligations. Judgment involves determining: • costs, including income or expenses derived from an asset under construction, that are eligible for capitalization; • timing to cease cost capitalization, generally when the asset is capable of operating in the manner intended by management, but also considering the circumstances and the industry in which the asset is to be operated, normally predetermined by management with reference to such factors as productive capacity; • the appropriate level of componentization (for individual components for which different depreciation methods or rates are appropriate); • repairs and maintenance that qualify as major inspections and overhauls; and • useful life over which such costs should be depreciated. Certain property, plant and equipment directly related to the Potash, Nitrogen, and Phosphate and Sulfate segments are depreciated using the units-of-production Pre-stripping units-of-production The following estimated useful lives have been applied to the majority of property, plant and equipment assets as at December 31, 2018: Useful Life Range (years) Weighted Average Useful Life (years) 1 Land improvements 5 to 80 35 Buildings and improvements 2 to 60 38 Machinery and equipment 1 to 80 25 1 Weighted by carrying amount as at December 31, 2018. Estimated useful lives, expected patterns of consumption, depreciation method and residual values are reviewed at least annually with the effect of any changes in estimate being accounted for on a prospective basis. Uncertainties are inherent in estimating reserve quantities, particularly as they relate to assumptions regarding future prices, the geology of the Company’s mines, the mining methods used, and the related costs incurred to develop and mine its reserves. Changes in these assumptions could result in material adjustments to reserve estimates, which could result in impairments or changes to depreciation expense in future periods. Accounting policies, estimates and judgments related to impairment of long-lived assets are described in Note 32. Supporting Information Land and Improvements Buildings and Improvements Machinery and Equipment Mine Assets Under Construction Total Carrying amount – December 31, 2017 $ 612 $ 4,184 $ 6,744 $ 979 $ 452 $ 12,971 Merger impact (Note 3) 396 2,695 4,042 – 326 7,459 Other acquisitions 10 31 66 – – 107 Additions 41 61 327 42 975 1,446 Disposals (3 ) (14 ) (30 ) – – (47 ) Transfers 10 30 538 18 (596 ) – Foreign currency translation (9 ) (16 ) (15 ) – (7 ) (47 ) Other adjustments – 44 (6 ) 10 (7 ) 41 Depreciation (33 ) (195 ) (1,032 ) (65 ) – (1,325 ) Impairment (6 ) (776 ) (752 ) (275 ) – (1,809 ) Carrying amount – December 31, 2018 $ 1,018 $ 6,044 $ 9,882 $ 709 $ 1,143 $ 18,796 Balance as at December 31, 2018 comprised of: Cost $ 1,294 $ 7,617 $ 16,806 $ 1,954 $ 1,143 $ 28,814 Accumulated depreciation (276 ) (1,573 ) (6,924 ) (1,245 ) – (10,018 ) Carrying amount $ 1,018 $ 6,044 $ 9,882 $ 709 $ 1,143 $ 18,796 Carrying amount – December 31, 2016 $ 618 $ 4,212 $ 6,859 $ 1,027 $ 602 $ 13,318 Additions – – 9 88 528 625 Transfers 63 71 521 (21 ) (634 ) – Other adjustments – – 5 15 – 20 Depreciation (19 ) (83 ) (487 ) (98 ) – (687 ) Impairment (50 ) (16 ) (163 ) (32 ) (44 ) (305 ) Carrying amount – December 31, 2017 $ 612 $ 4,184 $ 6,744 $ 979 $ 452 $ 12,971 Balance as at December 31, 2017 comprised of: Cost $ 868 $ 4,837 $ 12,000 $ 1,985 $ 452 $ 20,142 Accumulated depreciation (256 ) (653 ) (5,256 ) (1,006 ) – (7,171 ) Carrying amount $ 612 $ 4,184 $ 6,744 $ 979 $ 452 $ 12,971 Depreciation of property, plant and equipment was included in the following: December 31, December 31, Freight, transportation and distribution $ 15 $ – Cost of goods sold 1,016 668 Selling expenses 259 – General and administrative expenses 35 – 1,325 668 Depreciation recorded in inventory 46 19 $ 1,371 $ 687 After a strategic portfolio review was completed in 2018, it was determined the New Brunswick Potash operations would no longer be part of the Company’s medium-term or long-term strategic plans. As a result, the New Brunswick Potash operations will be taken out of care and maintenance and permanently shut down. The decision was considered a significant change in the expected manner of use and the related assets were moved from the Potash cash-generating unit (“CGU”) to the New Brunswick CGU. Indicators of impairment were identified, and the Company conducted an impairment assessment of the New Brunswick CGU where the estimated recoverable amount was determined to be $50, based on fair value less costs of disposal (“FVLCD”). Since the estimated recoverable amount was lower than the carrying value, an impairment loss of $1,809 ($1,320 net of tax) was recorded in the Potash segment. The estimated recoverable amount was determined to be the salvage value of the assets based on the estimated fair market value of similar used assets and past experience, a Level 3 fair value measurement. There were no reversals of impairment in 2018. In 2017, an impairment loss of $305 ($234, net of tax) was recognized in costs of goods sold under the Phosphate and Sulfate segment. This was primarily due to an indicator of impairment identified in the White Springs and Feed Plants CGU, as a result of reduced efficiency of conversion of rock to finished product, shifts in production mix and deteriorating price expectations. The White Springs and Feed Plants CGU had a recoverable amount of $96 at December 31, 2017 based on value in use. The recoverable amount was calculated using an after-tax |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
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Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Intangible assets, including goodwill, are identifiable, represent future economic benefits and are controlled by the Company. Goodwill is not amortized but is subject to annual impairment review. Accounting Policies Accounting Estimates and Judgments Goodwill is carried at cost, is not amortized, and represents the excess of the cost of an acquisition over the fair value of the Company’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. An intangible asset is recognized when it is: • reliably measurable; • identifiable (separable or arises from contractual rights); • probable that expected future economic benefits will flow to the Company; and • controllable by the Company. Amortization is recognized in net earnings as an expense related to the function of the intangible asset. The following expenses are not recognized as an asset: • costs to maintain software programs; and • development costs that do not meet the capitalization criteria. Goodwill is allocated to CGUs or groups of CGUs for impairment testing based on the level at which it is monitored by management, and not at a level higher than an operating segment. The allocation is made to those CGUs or groups of CGUs expected to benefit from the business combination in which the goodwill arose. Judgment is applied in determining when expenditures are eligible for capitalization as intangible assets. Estimation is applied to determine expected useful lives used in the straight-line amortization of intangible assets with finite lives. The following estimated useful lives have been applied to finite-lived intangible assets as at December 31, 2018: Useful Life Range Customer relationships 6 to 15 Technology 3 to 7 Trade names 1 10 to 20 Other 1 to 30 1 Certain trade names have indefinite useful lives as there are no regulatory, legal, contractual, cooperative, economic or other factors that limit their useful lives. Useful lives are reviewed, and adjusted if appropriate, at least annually. Supporting Information Following is a reconciliation of intangible assets: Goodwill Customer 2 Technology Trade Other Total Other Carrying amount – December 31, 2017 $ 97 $ – $ – $ – $ 69 $ 69 Merger impact (Note 3) 11,185 1,708 44 122 474 2,348 Other acquisitions (Note 3) 197 1 – – 7 8 Additions – – 79 – 19 98 Disposals – – – – (27 ) (27 ) Foreign currency translation (48 ) (20 ) 1 (4 ) (6 ) (29 ) Amortization 1 – (135 ) (7 ) (28 ) (87 ) (257 ) Carrying amount – December 31, 2018 $ 11,431 $ 1,554 $ 117 $ 90 $ 449 $ 2,210 Balance as at December 31, 2018 Cost $ 11,438 $ 1,691 $ 124 $ 118 $ 586 $ 2,519 Accumulated amortization (7 ) (137 ) (7 ) (28 ) (137 ) (309 ) Carrying amount $ 11,431 $ 1,554 $ 117 $ 90 $ 449 $ 2,210 Carrying amount – December 31, 2016 $ 97 $ – $ – $ – $ 83 $ 83 Additions – – – – 1 1 Amortization 1 – – – – (15 ) (15 ) Carrying amount – December 31, 2017 $ 97 $ – $ – $ – $ 69 $ 69 Balance as at December 31, 2017 Cost $ 104 $ – $ – $ – $ 123 $ 123 Accumulated amortization (7 ) – – – (54 ) (54 ) Carrying amount $ 97 $ – $ – $ – $ 69 $ 69 1 Amortization of $225 was included in selling expenses during the year ended December 31, 2018 (2017 – $NIL). 2 The remaining amortization period of customer relationships at December 31, 2018, was approximately 8 years. Goodwill Impairment Testing Goodwill by groups of CGUs as at December 31 is as follows: 2018 2017 Retail $ 6,882 $ – Potash 154 – Nitrogen 4,097 97 Phosphate and Sulfate 298 – $ 11,431 $ 97 The Company performed its annual impairment test on goodwill during the fourth quarter and did not identify any impairment. In calculating the recoverable amount for goodwill, the Company used the FVLCD methodology based on discounted cash flows (five-year projections and a terminal year thereafter) and incorporated assumptions an independent market participant would apply. The Company adjusted discount rates for each group of CGUs for the risk associated with achieving its forecasts (five-year The key assumptions with the greatest influence on the calculation of the recoverable amounts are the discount rates, terminal growth rates and cash flow forecasts for each group of CGUs as derived from the Company’s strategic plan. These key assumptions were based on historical data from internal sources as well as industry and market trends. For each group of CGUs, terminal growth rates used and corresponding breakeven discount rates per annum that equate the recoverable amount to the carrying amount are as follows: Terminal Breakeven Retail 2.5 % 8.3 % Potash 2.5 % 13.1 % Nitrogen 2.0 % 12.8 % Phosphate and Sulfate 2.0 % 11.2 % For Retail, sensitivities of the key assumptions are as follows: Percentage Change in Recoverable Discount rate +0.1 % $ (365 ) -0.1 % 381 Terminal growth rate +0.1 % $ 320 -0.1 % (307 ) Forecasted EBITDA over forecast period +5.0 % $ 1,488 -5.0 % (1,477 ) |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
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Other Assets | OTHER ASSETS Other assets as at December 31 were comprised of: 2018 2017 Deferred income tax assets (Note 9) $ 216 $ 18 Ammonia catalysts – net of accumulated amortization of $79 (2017 – $61) 81 42 Long-term income tax receivable (Note 9) 36 64 Accrued pension benefit asset (Note 28) 27 24 Other – net of accumulated amortization of $38 (2017 – $35) 165 98 $ 525 $ 246 |
Payables and Accrued Charges
Payables and Accrued Charges | 12 Months Ended |
Dec. 31, 2018 | |
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Payables and Accrued Charges | PAYABLES AND ACCRUED CHARGES Trade and other payables and accrued charges mainly consist of amounts owed to suppliers and prepayments made by customers planning to purchase the Company’s products for the upcoming growing season. Payables and accrued charges as at December 31 were comprised of: 2018 2017 Trade accounts $ 3,053 $ 255 Customer prepayments 1,625 – Dividends 526 84 Accrued compensation 425 98 Current portion of asset retirement obligations and accrued environmental costs (Note 20) 156 72 Accrued interest 105 33 Current portion of share-based compensation (Note 29) 87 13 Current portion of derivatives 45 29 Income taxes (Note 9) 47 16 Current portion of pension and other post-retirement benefits (Note 28) 13 35 Other payables and other accrued charges 621 201 $ 6,703 $ 836 |
Asset Retirement Obligations an
Asset Retirement Obligations and Accrued Environmental Costs | 12 Months Ended |
Dec. 31, 2018 | |
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Asset Retirement Obligations and Accrued Environmental Costs | ASSET RETIREMENT OBLIGATIONS AND ACCRUED ENVIRONMENTAL COSTS A provision is an estimated liability with uncertainty over the timing or amount that will be paid. The most significant asset retirement and environmental remediation provisions relate to costs to restore potash and phosphate sites to their original, or another specified, condition. Accounting Policies Accounting Estimates and Judgments Provisions are: • recognized for present legal or constructive obligations arising from past events where a future outflow of resources is probable, provided that amount can be reliably estimated; • measured at the present value of the cash flow expected to be required to settle the obligation; and • reviewed at the end of each reporting period for any changes, including the discount rate, foreign exchange rate and amount or timing of the underlying cash flows, and adjusted against the carrying amount of the provision and any related asset; otherwise, it is recognized in net earnings. A gain or loss may be incurred upon settlement of the liability. As a result of the Merger, the Company recognized contingent liabilities, which represents additional environmental costs that are present obligations of the Company although cash outflows of resources are not probable. These contingent liabilities are subsequently measured at the higher of the amount initially recognized and the best estimate of the expenditures to be incurred. Asset retirement obligations and accrued environmental costs include: • reclamation and restoration costs at the Company’s potash and phosphate mining operations, including management of materials generated by mining and mineral processing, such as various mine tailings and gypsum; • land reclamation and revegetation programs; • decommissioning of underground and surface operating facilities; • general cleanup activities aimed at returning the areas to an environmentally acceptable condition; and • post-closure care and maintenance. Estimates for provisions take into account: • most provisions will not be settled for a number of years; • environmental laws and regulations and interpretations by regulatory authorities could change or circumstances affecting the Company’s operations could change, either of which could result in significant changes to current plans; and • the nature, extent and timing of current and proposed reclamation and closure techniques in view of present environmental laws and regulations. It is reasonably possible that the ultimate costs could change in the future and that changes to these estimates could have a material effect on the Company’s financial statements. The Company uses appropriate technical resources, including outside consultants, to develop specific site closure and post-closure plans in accordance with the requirements of the various jurisdictions in which it operates. Other than certain land reclamation programs, settlement of the obligations is typically correlated with mine life estimates. The pre-tax Asset Retirement Obligations Accrued Environmental Costs Risk-Free Rate (%) 1 Cash Flow Payments 2 Risk-Free Rate (%) 1 Cash Flow Payments (years) Potash sites 3.64 – 5.00 52 – 430 n/a n/a Phosphate sites 1.60 – 5.43 1 – 483 2.08 – 4.27 1 – 30 Other 1.22 – 6.50 1 – 49 2.05 – 4.27 1 – 30 1 Risk-free discount rates reflect current market assessments of the time value of money and the risks specific to the timing and jurisdiction of the obligation. 2 Time frame in which payments are expected to principally occur from December 31, 2018, with the majority of phosphate payments taking place over the next 80 years. Changes in years can result from changes to the mine life and/or changes in the rate of tailing volumes. n/a = not applicable Sensitivity of asset retirement obligations and accrued environmental costs to changes in the discount rate on the recorded liability as at December 31, 2018 was as follows: Discount Rate Undiscounted Discounted Cash Flows +0.5% -0.5% Asset retirement obligations $ (88) $ 88 Potash sites $ 675 1 $ 130 Phosphate sites 1,636 1,125 Other 101 40 Accrued environmental costs (12) 15 Phosphate sites 321 246 Other 318 288 1 Represents total undiscounted cash flows in the first year of decommissioning for operating sites and cash flows for all years for sites that were or would be permanently shut down. For operating sites, excludes subsequent years of tailings dissolution, fine tails capping, tailings management area reclamation, post reclamation activities and monitoring, and final decommissioning, which are estimated to take an additional 90-375 years. Supporting Information Following is a reconciliation of asset retirement and environmental restoration obligations: Asset Retirement Obligations Accrued Environmental Costs Total Balance – December 31, 2017 $ 702 $ 21 $ 723 Merger impact 1 608 525 1,133 Recorded in earnings 64 12 76 Capitalized to property, plant and equipment 9 – 9 Settled during the year (57 ) (12 ) (69 ) Foreign currency translation (31 ) (12 ) (43 ) Balance – December 31, 2018 $ 1,295 $ 534 $ 1,829 Balance as at December 31, 2018 comprised of: Current liabilities Payables and accrued charges (Note 19) $ 122 $ 34 $ 156 Non-current Asset retirement obligations and accrued environmental costs $ 1,173 $ 500 $ 1,673 1 Asset retirement obligations of $201 and accrued environmental costs of $376 represent contingent liabilities recognized as a result of the Merger. Refer to Note 3. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
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Investments | INVESTMENTS Nutrien holds interests in associates and joint ventures, the most significant being Canpotex, MOPCO, Profertil and Agrichem. The Company’s most significant investment accounted for as FVTOCI is Sinofert. Accounting Policies Accounting Estimates and Judgments Investments in Equity-Accounted Investees Investments in which the Company exercises significant influence (but does not control) or has joint control (as joint ventures) are accounted for using the equity method. Significant influence is the power to participate in the financial and operating policy decisions of the investee, commonly referred to as associates. The Company’s significant policies include: Investments in Equity-Accounted Investees and Investments at FVTOCI Judgment is necessary in determining: • when significant influence exists; and • if objective evidence of impairment exists for equity-accounted investees and, if so, the amount of impairment. Significant Policy Statement of Comprehensive Income Investment Proportionate share of net earnings (loss) adjusted for any fair value adjustments at acquisition date and differences in accounting policies Net earnings (loss) Increase (decrease) Gain (loss) on disposal Net earnings (loss) Increase (decrease) Proportionate share of post-acquisitions movements in OCI (loss) OCI (loss) Increase (decrease) Impairment (loss) reversal 1 Net earnings (loss) Increase (decrease) Dividends received – (Decrease) 1 An impairment test is performed when there is objective evidence of impairment, such as significant adverse changes in the environment in which the equity-accounted investee operates or a significant or prolonged decline in the fair value of the investment below its carrying amount. Investments at FVTOCI The fair value of investments designated as FVTOCI is recorded in the consolidated balance sheets, with unrealized gains and losses, net of related income taxes, recorded in AOCI. The Company’s significant policies include: • the cost of investments sold is based on the weighted average method; and • realized gains and losses on these investments remain in OCI, but the cumulative balance can be transferred to another equity reserve, such as retained earnings. Supporting Information Equity-accounted investees and investments at FVTOCI as at December 31 were comprised of: Proportion of Ownership Interest and Voting Rights Held Carrying Amount Name Principal Activity Principal Place of Business and Incorporation 2018 2017 2018 2017 EQUITY-ACCOUNTED MOPCO 1 Nitrogen Producer Egypt 26 % – % 3 $ 236 $ – Profertil Nitrogen Producer Argentina 50 % – % 3 192 – Canpotex Marketing & Logistics Canada 50 % 2 33 % – – Agrichem 4 Fertilizer Producer & Marketer Brazil 80 % – % 103 – Other associates and joint ventures 161 30 Total equity-accounted investees $ 692 $ 30 INVESTMENTS Sinofert 5 Fertilizer Supplier & Distributor China/Bermuda 22 % 22 % $ 180 $ 258 Other – % – % 6 4 Total investments at FVTOCI $ 186 $ 262 1 The Company has representation on the MOPCO Board of Directors providing significant influence over MOPCO. The Company recorded its share of MOPCO’s earnings on a one-quarter 2 Upon closing of the Merger on January 1, 2018 as described in Note 3, the classification of the investment changed from an associate to a joint venture. 3 Investments in MOPCO and Profertil were acquired as part of the Merger as described in Note 3. 4 As contractually agreed, the Company has joint control with the other shareholder of Agrichem. Subsequent to 2018, the Company acquired the remaining interest in Agrichem making it a wholly owned subsidiary that will be consolidated. 5 The Company’s 22 percent ownership of Sinofert does not constitute significant influence as the Company does not have any representation on the Board of Directors of Sinofert. The Company elected for this investment to be accounted for as FVTOCI. Additional financial information of the Company’s proportionate interest in equity-accounted investees for the years ended December 31 was as follows: Associates Joint Ventures 2018 2017 2018 2017 Earnings from continuing operations and net earnings $ 24 $ – $ 16 $ 9 Other comprehensive income – – – – Total comprehensive income $ 24 $ – $ 16 $ 9 |
Short-Term Debt
Short-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
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Short-Term Debt | SHORT-TERM DEBT The Company uses its $4.5 billion commercial paper program for its short-term cash requirements. The commercial paper program is backstopped by an unsecured revolving term credit facility. Short-term facilities are renegotiated periodically. Short-term debt as at December 31 was comprised of: 2018 2017 Commercial paper $ 391 $ 730 Other credit facilities 1 238 – $ 629 $ 730 1 Credit facilities are unsecured and consist of US dollar-denominated debt of $153, euro-denominated debt of $22 and debt of $63 in other currency denominations. The amount available under the commercial paper program is limited to the availability of backup funds under the unsecured revolving term credit facility. As at December 31, 2018, the Company was authorized to issue commercial paper up to $4,500 (2017 – $2,500). The Company also had other facilities available from which it could draw short-term debt, including a $500 uncommitted revolving demand facility, a $500 accounts receivable securitization program (limit is reduced to $300 from January to March each year), and $520 of other facilities mostly denominated in foreign currencies. During 2018, the legacy $75 unsecured line of credit was replaced with the $500 uncommitted revolving credit facility. Principal covenants and events of default under the $4,500 unsecured revolving term credit facility are described in Note 23. Under the accounts receivable securitization program, the Company sells certain trade receivables to a special purchase vehicle, which is a consolidated entity within the Company. The Company controls and retains substantially all of the risks and rewards of the receivables sold to the special purchase vehicle. Should the Company wish to draw funds under the program, the sold accounts receivable balances may be used as capacity for collateralized borrowings from a third-party financial institution. At December 31, 2018, no loan drawdowns were made from this program. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
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Long-Term Debt | LONG-TERM DEBT The Company’s sources of borrowing for funding purposes are primarily senior notes, debentures and long-term credit facilities. The Company has access to the capital markets through its base shelf prospectus. Accounting Policy Issue costs of long-term debt obligations are capitalized to long-term obligations and are amortized to expense over the term of the related liability using the effective interest method. Supporting Information Long-term debt as at December 31 was comprised of: Rate of Interest Maturity 2018 2017 Senior notes 1 Notes issued 2009 6.500% May 15, 2019 $ 500 $ 500 Notes issued 2009 4.875% March 30, 2020 500 500 Notes issued 2014 3.625% March 15, 2024 750 750 Notes issued 2015 3.000% April 1, 2025 500 500 Notes issued 2016 4.000% December 15, 2026 500 500 Notes issued 2006 5.875% December 1, 2036 500 500 Notes issued 2010 5.625% December 1, 2040 500 500 Debentures 1 Debentures issued 2008 6.750% January 15, 2019 500 – Debentures issued 2012 3.150% October 1, 2022 500 – Debentures issued 2013 3.500% June 1, 2023 500 – Debentures issued 2015 3.375% March 15, 2025 550 – Debentures issued 1997 7.800% February 1, 2027 125 – Debentures issued 2015 4.125% March 15, 2035 450 – Debentures issued 2006 7.125% May 23, 2036 300 – Debentures issued 2010 6.125% January 15, 2041 500 – Debentures issued 2013 4.900% June 1, 2043 500 – Debentures issued 2014 5.250% January 15, 2045 500 – Other 30 – 8,205 3,750 Add net unamortized fair value adjustments 2 444 – Less net unamortized debt issue costs (55 ) (43 ) 8,594 3,707 Less current maturities (1,008 ) – Less current portion of net unamortized fair value adjustments 2 (1 ) – Add current portion of net unamortized debt issue costs 6 4 (1,003 ) 4 $ 7,591 $ 3,711 1 Each series of senior notes and debentures is unsecured and has no sinking fund requirements prior to maturity. Each series is redeemable and has various provisions that allow redemption prior to maturity, at the Company’s option, at specified prices. 2 Associated with the Merger on January 1, 2018. During 2018, the Company exchanged an aggregate of $7,578 of legacy companies’ senior notes and debentures for the same amount of new notes issued by Nutrien (the “Nutrien Notes”). The Nutrien Notes have interest rates and maturities identical to those of the applicable exchanged series of senior notes or debentures. A small portion of senior notes and debentures, excluding the 7.800 percent debentures due in 2027 (the “2027 debentures”), were not exchanged and remain obligations of the issuing subsidiary. The indentures governing these remaining subsidiary senior notes and debentures have been amended to remove certain covenants and events of default provisions. In addition, none of the 2027 debentures were exchanged but debt holders consented to amend the financial reporting covenant in the indenture governing the 2027 debentures to allow the Company’s financial reports, rather than reports of the issuing subsidiary, to satisfy its financial reporting obligations thereunder. The Nutrien Notes have various provisions that allow for redemption prior to maturity, at the Company’s option, at specified prices. The Company is subject to certain customary covenants including limitation on liens, merger and change of control covenants, and customary events of default. The Company was in compliance with these covenants as at December 31, 2018. The debt exchange is accounted for as a modification of debt without substantial modification of terms as the financial terms of the Nutrien Notes were identical to senior notes and debentures and there is no substantial difference between the present value of cash flows under the Nutrien Notes compared to the notes and debentures. Accordingly, there is no gain or loss on the exchange. The transaction costs from the debt exchange of $19 were recorded to the carrying amount of the long-term debt and will be amortized over the life of the Nutrien Notes. Details of the Company’s credit facility was as follows: 2018 2017 Credit facility $4,500 – maturity April 10, 2023 1 $3,250 – maturity May 31, 2021 $250 – maturity May 31, 2020 Borrowings outstanding $ NIL $ NIL Commercial paper outstanding, backstopped by the credit facility (Note 22) $ 391 $ 730 1 Subject to extensions, at the request of Nutrien, which shall not exceed five years. During 2018, the Company replaced the legacy $3,500 unsecured revolving credit facility and the legacy $2,500 multi-jurisdictional unsecured revolving credit facility with a new Nutrien $4,500 unsecured revolving term credit facility (“Nutrien Credit Facility”). Principal covenants and events of default under the Nutrien Credit Facility include a debt to capital ratio of less than or equal to 0.65:1 and other customary events of default and covenant provisions. Non-compliance |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2018 | |
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Share Capital | SHARE CAPITAL Authorized The Company is authorized to issue an unlimited number of common shares without par value and an unlimited number of preferred shares. The common shares are not redeemable or convertible. The preferred shares may be issued in one or more series with rights and conditions to be determined by the Board of Directors. No preferred shares have been issued. Issued Number of Common Shares (Pre-Merger) Number of Common Shares (Post-Merger) Consideration Balance – December 31, 2017 (Pre-Merger) 840,223,041 Conversion ratio 0.40 PotashCorp shares converted to Nutrien shares 336,089,216 $ 1,806 Agrium shares – December 31, 2017 (Pre-Merger) 138,165,765 Conversion ratio 2.23 Agrium shares converted to Nutrien shares 308,109,656 15,898 Fractional shares cancelled 1 (1,399 ) – Balance – January 1, 2018 (Post-Merger) 644,197,473 17,704 Issued under option plans and share-settled plans 670,201 34 Repurchased (36,332,197 ) (998 ) Balance – December 31, 2018 608,535,477 $ 16,740 1 No fractional shares of Nutrien were issued. Each PotashCorp shareholder and Agrium shareholder that would otherwise have been entitled to receive a fraction of a Nutrien share received, in lieu thereof, a cash amount, without interest, determined by reference to the volume weighted average trading price of Nutrien shares on the Toronto Stock Exchange on the first five trading days on which such shares traded on such exchange following January 2, 2018. Share Repurchase Program On February 20, 2018, the Company’s Board of Directors approved a share repurchase program of up to 5 percent of the Company’s outstanding common shares over a one-year On February 20, 2019, the Company’s Board of Directors approved the renewal of the share repurchase program of up to 5 percent of the Company’s outstanding common shares over a one-year period through a normal course issuer bid. Purchases under the normal course issuer bid will be made through open market purchases at market price as well as by other means as may be permitted by applicable securities regulatory authorities, including private agreements. The following table summarizes the Company’s share repurchases: 2018 Common shares repurchased for cancellation 36,332,197 Average price per share $ 50.97 Repurchase resulting in a reduction of: Share capital $ 998 Contributed surplus 1 23 Retained earnings 1 831 Total Cost $ 1,852 1 The excess of net cost over the average book value of the shares. As of February 20, 2019, an additional 5,933,135 common share were repurchased for cancellation at a cost of $297 and an average price per share of $50.10. Dividends Declared During 2018, the Company declared a dividend of $0.40 per share for the three months ended March 31, June 30 and September 30. During the three months ended December 31, 2018, two dividends of $0.43 per share were declared. The first declared dividend of $0.43 per share was payable January 17, 2019 to shareholders of record December 31, 2018, and the second declared dividend of $0.43 per share is payable April 18, 2019 to shareholders of record on March 29, 2019. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2018 | |
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Capital Management | CAPITAL MANAGEMENT The objective of Nutrien’s capital allocation policy is to balance between the return of capital to shareholders, improvement in the efficiency of the Company’s existing assets, and delivery on the Company’s growth opportunities, while maintaining a strong balance sheet and flexible capital structure to optimize the cost of capital at an acceptable level of risk. Nutrien’s goal is to pay a stable and growing dividend with a target payout that represents 40 to 60 percent of free cash flow after sustaining capital through the agricultural cycle. The Company monitors its capital structure and, based on changes in economic conditions, may adjust the structure by adjusting the amount of dividends paid to shareholders, repurchasing shares, issuing new shares, issuing new debt or retiring existing debt. The Company uses a combination of short-term and long-term debt to finance its operations. It typically pays floating rates of interest on short-term debt and credit facilities, and fixed rates on Nutrien Notes. Adjusted net debt and adjusted shareholders’ equity are included as components of the Company’s capital structure. The calculation of adjusted net debt, adjusted shareholders’ equity and adjusted capital is set out in the following table: 2018 2017 Short-term debt $ 629 $ 730 Current portion of long-term debt 1,003 – Long-term debt 7,591 3,711 Total debt 9,223 4,441 Cash and cash equivalents (2,314 ) (116 ) Net debt 6,909 4,325 Unamortized fair value adjustments (444 ) – Adjusted net debt 6,465 4,325 Total shareholders’ equity 24,425 8,303 Accumulated other comprehensive (income) loss 291 (25 ) Adjusted shareholders’ equity 24,716 8,278 Adjusted capital $ 31,181 $ 12,603 The Company monitors the following ratios: 2018 2017 (Note 33) Ratios Adjusted net debt to adjusted EBITDA 1.64 4.28 Adjusted EBITDA to adjusted finance costs 8.15 4.75 Adjusted net debt to adjusted capital 20.7% 34.3% Other components of ratios above are calculated as follows: 2018 2017 (Notes 33) Net (loss) earnings from continuing operations $ (31 ) $ 154 Finance costs 538 238 Income taxes (93 ) (183 ) Depreciation and amortization 1,592 692 EBITDA 2,006 901 Impairment of property, plant and equipment 1,809 – Merger and related costs 170 84 Share-based compensation 116 26 Defined Benefit Plans Curtailment Gain (157 ) – Adjusted EBITDA $ 3,944 $ 1,011 2018 2017 Finance costs $ 538 $ 238 Unwinding of discount on asset retirement obligations (51 ) (17 ) Borrowing costs capitalized to property, plant and equipment 12 11 Interest on net defined benefit pension and other post-retirement plan obligations (15 ) (19 ) Adjusted finance costs $ 484 $ 213 The Company maintains a base shelf prospectus, which permits issuance through April 2020 in Canada and the United States, of common shares, debt, and other securities up to $11,000. Issuance of securities under the base shelf prospectus requires filing a prospectus supplement and is subject to the availability of funding in capital markets. During the year ended December 31, 2018, the Company filed a prospectus supplement to exchange $8,175 of the senior notes of PotashCorp and debentures of Agrium – for the Nutrien Notes issued by the Company, as discussed in Note 23. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
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Commitments | COMMITMENTS A commitment is an agreement that is enforceable and legally binding to make a payment in the future for the purchase of goods or services. These amounts are not recorded in the consolidated balance sheets since the Company has not yet received the goods or services from the supplier. The amounts below are what the Company is committed to pay based on current expected contract prices. Accounting Policies Accounting Estimates and Judgments Leases entered into are classified as either finance or operating leases. Leases that transfer substantially all of the risks and rewards of ownership of property to the Company are accounted for as finance leases. They are capitalized at the commencement of the lease at the lower of the fair value of the leased property and the present value of the minimum lease payments. Property acquired under a finance lease is depreciated over the shorter of the period of expected use on the same basis as other similar property, plant and equipment and the lease term. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rental payments under operating leases are expensed in net earnings on a straight-line basis over the period of the lease. Refer to Note 32 for details pertaining to the impact of the adoption of IFRS 16 in 2019. Judgment is required in considering a number of factors to ensure that leases to which the Company is party are classified appropriately as operating or financing. Such factors include whether the lease term is for the major part of the asset’s economic life and whether the present value of minimum lease payments amounts to substantially all of the fair value of the leased asset. As at December 31, 2018, substantially all of the leases to which the Company is party have been classified as operating leases. Supporting Information Lease Commitments The Company has various long-term operating lease agreements for land, buildings, port and distribution facilities, equipment, ocean-going transportation vessels, railcars, vehicles and application equipment. The majority of lease agreements are renewable at the end of the lease period at market rates. Rental expenses for operating leases for the year ended December 31, 2018 were $301 (2017 – $87). Purchase Commitments In 2018, the Company entered into a new long-term natural gas purchase agreement in Trinidad, which will commence January 1, 2019 and is set to expire December 31, 2023. The contract provides for prices that vary primarily with ammonia market prices, and annual escalating floor prices. The commitments included in the following table are based on floor prices and minimum purchase quantities. Profertil has long-term gas contracts denominated in US dollars and expiring in 2019, which account for approximately 100 percent of Profertil’s gas requirements. YPF S.A., the Company’s joint venture partner in Profertil, supplies approximately 70 percent of the gas under these contracts. Commitments include the Company’s proportionate share of this joint venture. The Carseland facility has a power co-generation Agreements for the purchase of sulfur for use in the production of phosphoric acid provide for specified purchase quantities and prices based on market rates at the time of delivery. Commitments included in the following table are based on expected contract prices. As part of the agreement to sell the Conda Phosphate operations (“CPO”), the Company entered into long-term strategic supply and offtake agreements which extend to 2023. Under the terms of the supply and offtake agreements, the Company will supply 100 percent of the ammonia requirements of CPO and purchase 100 percent of the monoammonium phosphate (“MAP”) product produced at CPO. The MAP production is estimated at 330,000 tonnes per year. Capital Commitments The Company has various long-term contractual commitments related to the acquisition of property, plant and equipment, the latest of which expires in 2022. The commitments included in the following table are based on expected contract prices. Other Commitments Other commitments consist principally of pipeline capacity, technology service contracts, throughput and various rail and vessel freight contracts, the latest of which expires in 2026, and mineral lease commitments, the latest of which expires in 2038. Minimum future commitments under these contractual arrangements were as follows at December 31, 2018: Operating Long-term Purchase Commitments Capital Commitments Other Commitments Total Within 1 year $ 216 $ 1,341 $ 1,364 $ 37 $ 114 $ 3,072 1 to 3 years 316 1,112 949 18 123 2,518 3 to 5 years 212 1,576 945 2 61 2,796 Over 5 years 343 8,689 138 – 20 9,190 Total $ 1,087 $ 12,718 $ 3,396 $ 57 $ 318 $ 17,576 |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
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Guarantees | GUARANTEES Accounting Policies Guarantees are not recognized in the consolidated balance sheets, but are disclosed and include contracts or indemnifications that contingently require the Company to make payments to the guaranteed party based on: • changes in an underlying; • another entity’s failure to perform under an agreement; and • failure of a third party to pay its indebtedness when due. Guarantees are recorded by the Company and recognized as a financial instrument in the consolidated balance sheets when any of the triggering events above result in the Company becoming primarily liable to the contract. Supporting Information In the normal course of business, the Company provides indemnification agreements to counterparties in transactions such as purchase and sale contracts, service agreements, director/officer contracts and leasing transactions. The terms of these indemnification agreements: • may require the Company to compensate counterparties for costs incurred as a result of various events, including environmental liabilities and changes in (or in the interpretation of) laws and regulations, or as a result of litigation claims or statutory sanctions that may be suffered by a counterparty as a consequence of the transaction; • will vary based upon the contract, the nature of which prevents the Company from making a reasonable estimate of the maximum potential amount that it could be required to pay to counterparties; and • have not historically resulted in the Company making any significant payments and, as at December 31, 2018, no amounts have been accrued in the consolidated financial statements (except for accruals relating to the underlying potential liabilities). Various commitments (such as railcar leases) related to a certain investee have been directly guaranteed by the Company under certain agreements with third parties. The Company would be required to perform on these guarantees in the event of default by the guaranteed parties. No material loss is anticipated by reason of such agreements and guarantees. In relation to significant guarantees, the Company has guaranteed the gypsum stack capping, closure and post-closure obligations of its wholly owned subsidiaries, PCS Phosphate Company, Inc. (“PCS Phosphate”) in White Springs, Florida and PCS Nitrogen Inc. (“PCS Nitrogen”) in Geismar, Louisiana, respectively, pursuant to the financial assurance regulatory requirements in those states. In addition to the foregoing guarantees associated with US mining operations, the Company has guaranteed the performance of certain remediation obligations of PCS Joint Venture, Ltd., a wholly owned subsidiary, at the Lakeland, Florida and Moultrie, Georgia sites. The Company has accrued costs associated with the retirement of long-lived tangible assets in the consolidated financial statements to the extent that a legal or constructive liability to retire such assets exists. See Note 20 for details. The Company expects to be able to satisfy all applicable credit support requirements without disrupting normal business operations. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefits | 12 Months Ended |
Dec. 31, 2018 | |
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Pension and Other Post-Retirement Benefits | PENSION AND OTHER POST-RETIREMENT BENEFITS The Company offers pension and other post-retirement benefits to qualified employees: defined benefit pension plans; defined contribution pension plans; and health, disability, dental and life insurance (referred to as other defined benefit) plans. Substantially all employees participate in at least one of these plans. Accounting Policies Accounting Estimates and Judgments For employee retirement and other defined benefit plans: • accrued liabilities are recorded net of plan assets; • costs including current and past service costs, gains or losses on curtailments and settlements, and remeasurements are actuarially determined on a regular basis using the projected unit credit method; and • past service cost is recognized in net earnings at the earlier of when i) a plan amendment or curtailment occurs; or ii) related restructuring costs or termination benefits are recognized. Remeasurements, recognized directly in OCI in the period they occur, are comprised of actuarial gains and losses, return on plan assets (excluding amounts included in net interest) and the effect of the asset ceiling (if applicable). When a plan amendment occurs before a settlement, the Company recognizes past service cost before any gain or loss on settlement. Defined contribution plan costs are recognized in net earnings for services rendered by employees during the period. Estimates and judgments are required to determine discount rates, health care cost trend rates, projected salary increases, retirement age, longevity and termination rates. These assumptions are determined by management and are reviewed annually by the Company’s independent actuaries. The Company’s discount rate assumption is impacted by: • the weighted average interest rate at which each pension and other post-retirement plan liability could be effectively settled at the measurement date; • country specific rates; and • the use of a yield curve approach. 1 1 Based on the respective plans’ demographics, expected future pension benefits and medical claims, payments are measured and discounted to determine the present value of the expected future cash flows. The cash flows are discounted using yields on high-quality AA-rated non-callable The significant assumptions used to determine the benefit obligations and expense for the Company’s significant plans as at and for the year ended December 31 were as follows: Pension Other 2018 2017 2018 2017 Assumptions used to determine the benefit obligations 1 Discount rate, % 4.22 3.65 4.17 3.65 Rate of increase in compensation levels, % 4.75 5.00 n/a n/a Medical cost trend rate – assumed, % n/a n/a 6.10 – 4.50 2 5.60 – 4.50 2 Medical cost trend rate – year reaches ultimate trend rate n/a n/a 2037 2037 Mortality assumptions 3 Life expectancy at 65 for a male member currently at age 65 20.6 20.7 20.4 20.0 Life expectancy at 65 for a female member currently at age 65 22.8 22.7 22.8 22.4 Average remaining service period of active employees (years) 9.7 9.0 5.1 12.2 Average duration of the defined benefit obligations 4 13.7 15.7 15.1 19.0 1 The current year’s expense is determined using the assumptions that existed at the end of the previous year. 2 The Company assumed a graded medical cost trend rate starting at 6.10 percent in 2018, moving to 4.50 percent by 2037 (2017 – starting at 5.60 percent, moving to 4.50 percent by 2037). 3 Based on actuarial advice in accordance with the latest available published tables, adjusted where appropriate to reflect future longevity improvements for each country. 4 Weighted average length of the underlying cash flows. n/a = not applicable Of the most significant assumptions, a change in discount rates has the greatest potential impact on the Company’s pension and other post-retirement benefit plans, with sensitivity to change as follows: 2018 2017 Change in Assumption Benefit Obligations Expense in Income Before Income Taxes Benefit Obligations Expense in Income Before Income Taxes As reported $ 1,797 $ (87 ) $ 1,831 $ 75 Discount rate 1.0 percentage point $ 271 24 326 20 1.0 percentage point # (218 ) (22 ) (251 ) (18 ) Supporting Information Description of Defined Benefit Pension Plans The Company sponsors defined benefit pension plans as follows: Plan Type Contributions United States • non-contributory; • guaranteed annual pension payments for life; • benefits generally depend on years of service and compensation level in the final years leading up to age 65; • benefits available starting at age 55 at a reduced rate; and • plans provide for maximum pensionable salary and maximum annual benefit limits. • made to meet or exceed minimum funding requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and associated Internal Revenue Service regulations and procedures. Canada • made to meet or exceed minimum funding requirements based on provincial statutory requirements and associated federal taxation rules. Supplemental Plans in US and Canada for Senior Management • non-contributory; • unfunded; and • supplementary pension benefits. • provided for by charges to earnings sufficient to meet the projected benefit obligations; and • payments to plans are made as plan payments to retirees occur. The Company’s defined benefit pension plans discussed above are funded with separate funds that are legally separated from the Company and administered through an employee benefits or management committee in each country, which is composed of employees of the Company. The employee benefits or management committee is required by law to act in the best interests of the plan participants and, in the US and Canada, is responsible for the governance of the plans, including setting certain policies (e.g., investment and contribution) of the funds. The current investment policy for each country’s plans generally does not include any asset/liability matching strategies or currency hedging strategies. Plan assets held in trusts are governed by local regulations and practice in each country, as is the nature of the relationship between the Company and the trustees and their composition. Description of Other Post-Retirement Plans The Company provides health care plans for certain eligible retired employees in the US, Canada and Trinidad. Eligibility for these benefits is generally based on a combination of age and years of service at retirement. Certain terms of the plans include: • coordination with government-provided medical insurance in each country; • certain unfunded cost-sharing features such as co-insurance, co-payments • for certain plans, maximum lifetime benefits; • at retirement, the employee’s spouse and certain dependent children may be eligible for coverage; • benefits are self-insured and are administered through third-party providers; and • generally, retirees contribute towards annual cost of the plans. The Company provides non-contributory Risks The defined benefit pension and other post-retirement plans expose the Company to broadly similar actuarial risks. The most significant risks as discussed below include investment risk, interest rate risk, longevity risk and salary risk. These plans are not exposed to any other significant, unusual or specific risks. Investment Risk A deficit will be created if plan assets underperform the discount rate used in the defined benefit obligation valuation. To mitigate investment risk, the Company employs: • a total return on investment approach whereby a diversified mix of equities and fixed income investments is used to maximize long-term return for a prudent level of risk; and • risk tolerance established through careful consideration of plan liabilities, plan funded status and corporate financial condition. Other assets such as private equity and hedge funds are not used at this time. The Company’s policy is not to invest in commodities, precious metals, mineral rights, bullions, or collectibles. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/liability studies. Interest Rate Risk A decrease in bond interest rates will increase the pension liability; however, this is generally expected to be partially offset by an increase in the return on the plan’s debt investments. Longevity Risk An increase in life expectancy of plan participants will increase the plan’s liability. Salary Risk An increase in the salary of the plan’s participants will increase the plan’s liability. Financial Information Movements in the pension and other post-retirement benefit assets (liabilities) Obligation Plan Assets Net Balance – December 31, 2017 $ (1,831 ) $ 1,380 $ (451 ) Merger impact 1 (347 ) 205 (142 ) Components of defined benefit expense recognized in earnings Current service cost for benefits earned during the year (67 ) – (67 ) Interest (expense) income (77 ) 62 (15 ) Past service cost, including curtailment gains and settlements 2 157 – 157 Foreign exchange rate changes and other 39 (27 ) 12 Subtotal of components of defined benefit expense recognized in earnings 52 35 87 Remeasurements of the net defined benefit liability recognized in OCI during the year Actuarial gain arising from: Changes in financial assumptions 210 – 210 Changes in demographic assumptions 11 – 11 Loss on plan assets (excluding amounts included in net interest) – (149 ) (149 ) Subtotal of remeasurements 221 (149 ) 72 Cash flows Contributions by plan participants (6 ) 6 – Employer contributions – 53 53 Benefits paid 114 (114 ) – Subtotal of cash flows 108 (55 ) 53 Balance – December 31, 2018 3 $ (1,797 ) $ 1,416 $ (381 ) Balance comprised of: Non-current Other assets (Note 18) $ 27 Current liabilities Payables and accrued charges (Note 19) $ (13) Non-current Pension and other post-retirement benefit liabilities $ (395) 1 The Company acquired Agrium’s pension and other post-retirement benefit obligations, representing the fair values at the acquisition date as described in Note 3. 2 In 2018, as part of the Company’s continuous assessment of its operations, participation in certain company defined benefit pension and other post-retirement benefit plans was suspended and/or discontinued effective January 1, 2020 based on age and years of service. As a result, the Company recognized a Merger-related Defined Benefit Plans Curtailment Gain of $157. 3 Obligations arising from funded and unfunded pension plans are $(1,466) and $(331), respectively. Other post-retirement benefit plans have no plan assets and are unfunded. Obligation Plan Assets Net Balance – December 31, 2016 $ (1,698 ) $ 1,246 $ (452 ) Components of defined benefit expense recognized in earnings (131 ) 56 (75 ) Remeasurements of the net defined benefit liability recognized in OCI during the year (57 ) 123 66 Cash flows 55 (45 ) 10 Balance – December 31, 2017 1 $ (1,831 ) $ 1,380 $ (451 ) Balance comprised of: Non-current Other assets (Note 18) $ 24 Current liabilities Payables and accrued charges (Note 19) $ (35 ) Non-current Pension and other post-retirement benefit liabilities $ (440 ) 1 Obligations arising from funded and unfunded pension plans are $(1,445) and $(386), respectively. Other post-retirement benefit plans have no plan assets and are unfunded. Plan Assets The fair value of plan assets of the Company’s defined benefit pension plans, by asset category, was as follows as at December 31: 2018 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Other (Level 2 & 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other (Level 2 & 3) Total Cash and cash equivalents $ 6 $ 54 $ 60 $ 13 $ 33 $ 46 Equity securities and equity funds US 454 65 519 565 2 567 International 175 65 240 151 29 180 Debt securities 1 187 329 516 190 244 434 International balanced fund – 97 97 – 173 173 Other (25 ) 9 (16 ) (20 ) – (20 ) Total pension plan assets $ 797 $ 619 $ 1,416 $ $ 481 $ 1,380 1 Debt securities included US securities of 52 percent (2017 – 62 percent), International securities of 31 percent (2017 – 18 percent) and Mortgage-backed securities of 17 percent (2017 – 20 percent). Letters of credit secured certain of the Canadian unfunded defined benefit plan liabilities as at December 31, 2018. The Company expects to contribute approximately $97 to all pension and post-retirement plans during 2019. Total contributions recognized as expense under all defined contribution plans for 2018 was $75 (2017 – $19). |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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Share-Based Compensation | SHARE-BASED COMPENSATION The Company has share-based compensation plans for eligible employees and directors as part of their remuneration package, including Stock Options, PSUs, Restricted Share Units (“RSUs”) and Deferred Share Units (“DSUs”). In addition, in connection with the completion of the Merger, the Company assumed the legacy compensation plans and outstanding awards of PotashCorp and Agrium, which include Stock Options, PSUs, RSUs and Stock Appreciation Rights (“SARs”). Accounting Policies Accounting Estimates and Judgments The accounting for share-based compensation plans is fair value-based. The grant date is the date the Company and the employee have a shared understanding of the terms and conditions of the arrangement, at which time the Company confers on the employee the right to cash equity instruments, provided the specified vesting conditions, if any, are met. For those awards with performance conditions that determine the number of options or units to which employees will be entitled, measurement of compensation cost is based on the Company’s best estimate of the outcome of the performance conditions. For plans settled through the issuance of equity: • fair value for stock options is determined on grant date using the Black-Scholes-Merton option-pricing model; • fair value for PSUs is determined on grant date by projecting the outcome of performance conditions; • compensation expense is recorded over the period the plans vest (corresponding increase to contributed surplus); • forfeitures are estimated throughout the vesting period based on past experience and future expectations, and adjusted upon actual vesting; and • when exercised, the proceeds and amounts recorded in contributed surplus are recorded in share capital. For plans settled in cash: • a liability is recorded based on the fair value of the awards each period; • expense accrues from the grant date over the vesting period; and • fluctuations in fair value of the award and related compensation expense are recognized in the period the fluctuation occurs. Judgment involves determining: • the grant date; and • the fair value of share-based compensation awards at the grant date. Estimation involves determining: • stock option-pricing model assumptions as described in the weighted average assumptions table below; • forfeiture rate for options granted; • projected outcome of performance conditions for PSUs, including the relative ranking of the Company’s total shareholder return, including expected dividends, compared with a specified peer group using a Monte Carlo simulation option-pricing model and the outcome of the Company’s synergies relative to the target; and • the number of dividend equivalent units expected to be earned. PSUs vest based on the achievement of performance conditions over a three-year performance cycle. Changes to vesting assumptions may change based on non-market RSUs are not subject to performance conditions and vest at the end of the three-year vesting period. Changes to vesting assumptions are reflected in earnings immediately for compensation cost already recognized. Supporting Information During the year ended December 31, 2018, the Company issued stock options under its 2018 stock option plan, PSUs and RSUs under its 2018 PSU/RSU plan and DSUs under its 2018 DSU plan, in each case to eligible employees and directors. In 2018, the outstanding legacy share-based compensation plans of PotashCorp and Agrium were also assumed by, and settled in or with reference to shares of, Nutrien on the basis of the exchange ratios described in Note 3. As at December 31, 2018, the Company had the following awards available to be granted under the 2018 stock option plan, the 2018 PSU/RSU plan and the 2018 DSU plan: Plan Features Form of Payment Eligibility Granted Vesting Period Maximum Term Settlement Stock Options Officers and eligible employees Annually 25% per year over 10 years Shares PSUs 1 Officers and other eligible employees Annually On third anniversary n/a Cash RSUs 2 Eligible employees Annually On third anniversary n/a Cash DSUs Non-executive At the discretion of the Board Fully vest upon n/a In cash on director’s departure from 1 PSUs granted vest based on total shareholder return over a three-year performance cycle, compared to average total shareholder return of a peer group of companies over the same period. The value of each PSU granted is based on the average closing price of the Company’s common shares on the NYSE during the last month of the three-year cycle. 2 RSUs granted are not subject to performance conditions and vest at the end of the three-year period. n/a = not applicable In addition, as at December 31, 2018, the Company had the following awards outstanding under one or more assumed legacy plans of PotashCorp and/or Agrium under which no new awards will be granted: Plan Features Form of Payment Vesting Period Maximum Term Settlement Stock Options 25% per year over four years 1 On third anniversary of grant date 2 10 years Shares PSUs 3,4 On third anniversary of grant date n/a Cash /Shares RSUs 5 On third anniversary of grant date n/a Cash SARs 6 25% per year over four years 10 years Cash 1 Under the assumed legacy Agrium stock option plan. 2 Under the assumed legacy PotashCorp long-term incentive plan and performance option plans. 3 Under the assumed legacy PotashCorp long-term incentive plan, PSUs granted in 2017 and 2016 were comprised of three tranches, with each tranche vesting based on achievement of a combination of performance metrics over separate performance periods ranging from one to three years and such PSUs will be settled in shares for grantees who are subject to the Company’s share ownership guidelines and in cash for all other grantees. 4 Under the assumed legacy Agrium long-term incentive plan, PSUs granted in 2017 and 2016 vest over a three-year performance cycle based on the achievement of performance metrics and will be settled in cash. 5 Under the assumed legacy Agrium long-term incentive plan, RSUs granted in 2017 and 2016 are not subject to performance conditions, vest at the end of the three-year period and will be settled in cash. 6 Under the assumed legacy Agrium SARs plan, effective January 1, 2015, tandem stock appreciation rights (“TSARs”) were no longer issued to eligible officers and employees. TSARs granted in Canada prior to January 1, 2015 have similar terms and vesting conditions to SARs and also provide the holder with the ability to choose between (a) receiving the price of the Company’s shares on the date of exercise in excess of the exercise price of the right and (b) receiving common shares by paying the exercise price of the right. The Company’s past experience and future expectation is that substantially all option holders will elect to exercise their options as a SAR, surrendering their options and receiving settlement in cash. TSARs are included with the SARs disclosure. n/a = not applicable The weighted average fair value of stock options granted was estimated as of the date of the grant using the Black-Scholes-Merton option-pricing model. The weighted average grant date fair value of stock options per unit granted in 2018 was $9.71. The weighted average assumptions for both legacy companies by year of grant that impacted current year results are as follows: Year of Grant Assumptions Based On 2018 2017 1 Exercise price per option Quoted market closing price 2 $ 44.50 $ 46.47 Expected annual dividend yield Annualized dividend rate 3 3.58% 2.93% Expected volatility Historical volatility 4 29% 28% Risk-free interest rate Zero-coupon government issues 5 2.79% 1.95% Average expected life of options Historical experience 7.5 years 6.2 years 1 The weighted average assumptions used by both legacy companies were presented due to the multi-year impact on share-based compensation expense. 2 Of common shares on the last trading day immediately preceding the date of the grant. 3 As of the date of grant. 4 Of the Company’s stock over a period commensurate with the expected life of the option. 5 Implied yield available on equivalent remaining term at the time of the grant. The exercise price is not less than the quoted market closing price of the Company’s common shares on the last trading day immediately preceding the date of the grant, and an option’s maximum term is 10 years. In general, options granted under assumed legacy PotashCorp performance option plans vested according to a schedule based on legacy PotashCorp’s three-year average excess consolidated cash flow return on investment over the weighted average cost of capital. A summary of the status of the stock option plans as at December 31, 2018 and 2017 and changes during the years ending on those dates is as follows: Number of Shares Subject to Option Weighted Average Exercise Price 2018 (Pre-Merger) 2018 (Post-Merger) 2017 2018 (Pre-Merger) 2018 (Post-Merger) 2017 PotashCorp outstanding, beginning of year 17,170,654 19,470,014 $ 32.24 $ 31.15 PotashCorp shares converted to Nutrien shares (Conversion ratio 0.40) 6,868,262 $ 80.60 Agrium outstanding shares—beginning of year 1,380,868 100.08 Agrium shares converted to Nutrien shares (Conversion ratio 2.23) 3,079,321 44.88 Balance – beginning of year 9,947,583 19,470,014 $ 69.54 $ 31.15 Granted 1,875,162 1,482,829 44.50 18.71 Exercised (647,331 ) (22,100 ) 42.86 17.78 Forfeited or cancelled (1,793,077 ) (1,221,314 ) 82.84 34.55 Expired (338,100 ) (2,538,775 ) 154.94 20.06 Outstanding, end of year 9,044,237 17,170,654 $ 58.41 $ 32.24 The aggregate grant-date fair value of all stock options granted during 2018 was $18. The average share price during 2018 was $51.80 per share. The following table summarizes information about stock options outstanding as at December 31, 2018 with expiry dates ranging from May 2019 to February 2028: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted Remaining Weighted Exercise Number Weighted Exercise $ 37.00 to $ 41.00 2,064,621 7 $ 38.59 966,606 $ 38.22 $ 44.00 to $ 52.00 3,996,110 8 46.88 1,542,489 48.75 $ 64.00 to $ 75.00 834,091 4 71.57 834,091 71.57 $ 80.00 to $ 88.00 959,275 4 82.30 959,275 82.30 $ 91.00 to $110.00 1,040,300 4 99.04 1,040,300 99.04 $130.00 to $131.00 149,840 2 130.78 149,840 130.78 9,044,237 7 $ 58.41 5,492,601 $ 68.01 Other Plans The Company offers its 2018 DSU plan to non-employee For all plans, share-based awards granted in 2018 and outstanding as at December 31, 2018 were: Units Granted Units Outstanding Stock Options 1,875,162 9,044,237 PSUs 619,799 1,752,281 RSUs 437,474 889,005 DSUs 61,062 456,848 SARs – 2,388,402 Compensation expense for all employee and director share-based compensation plans was as follows: 2018 2017 Stock Options $ 23 $ 7 PSUs 83 16 RSUs 14 – DSUs – 3 SARs (4 ) – $ 116 $ 26 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
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Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has a number of related parties with the most significant being Canpotex, key management personnel and post-employment benefit plans. Accounting Policies Supporting Information A person or entity is considered a related party if it is: • an associate or joint venture of Nutrien; • a member of key management personnel, consisting of the Company’s directors and executives as disclosed in the Company’s 2018 Annual Information Form; • a post-employment benefit plan for the benefit of Nutrien employees; or • a person that has significant influence over Nutrien. Sale of Goods The Company sells potash from its Canadian mines for use outside Canada and the US exclusively to Canpotex. Sales are at prevailing market prices and are settled on normal trade terms. Sales to Canpotex for the year ended December 31, 2018 were $1,657 (2017 – $988). Canpotex’s proportionate sales volumes by geographic area are shown in Note 4. The receivable outstanding from Canpotex is shown in Note 14 and arose from sale transactions described above. It is unsecured and bears no interest. There are no provisions held against this receivable. Key Management Personnel Compensation Compensation to key management personnel was comprised of: 2018 2017 Salaries and other short-term benefits $ 19 $ 14 Share-based compensation 53 9 Post-employment benefits 3 3 Termination benefits 1 23 – $ 98 $ 26 1 Primarily includes costs incurred with respect to departure of five key management personnel in 2018 following completion of the Merger. Transactions with Post-Employment Benefit Plans Disclosures related to the Company’s post-employment benefit plans are shown in Note 28. |
Contingencies and Other Matters
Contingencies and Other Matters | 12 Months Ended |
Dec. 31, 2018 | |
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Contingencies and Other Matters | CONTINGENCIES AND OTHER MATTERS Contingent liabilities, which are not recognized in the consolidated financial statements but may be disclosed, are possible obligations as a result of uncertain future events outside the control of the Company, or present obligations not recognized because the amount cannot be sufficiently measured or payment is not probable. Accounting Policies Accounting Estimates and Judgments Generally, a contingent liability arises from past events and is: • a possible obligation whose existence will be confirmed only by one or more uncertain future events or non-events • a present obligation not recognized because it is not probable an outflow of resources will be required to settle the obligation, or a reliable estimate of the amount cannot be made. Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. Where the Company is jointly and severally liable for an obligation, the part of the obligation that is expected to be met by other parties is treated as a contingent liability. The following judgments are required to determine the Company’s exposure to possible losses and gains related to environmental matters and other various claims and lawsuits pending: • prediction of the outcome of uncertain events (i.e., being virtually certain, probable, remote or undeterminable); • determination of whether recognition or disclosure in the consolidated financial statements is required; and • estimation of potential financial effects. Where no amounts are recognized, such amounts are contingent and disclosure may be appropriate. While the amount disclosed in the consolidated financial statements may not be material, the potential for large liabilities exists and, therefore, these estimates could have a material impact on the Company’s consolidated financial statements. Supporting Information Canpotex Nutrien is a shareholder in Canpotex, which markets Canadian potash outside of Canada and the United States. Should any operating losses or other liabilities be incurred by Canpotex, the shareholders have contractually agreed to reimburse it for such losses or liabilities in proportion to each shareholder’s productive capacity. Through December 31, 2018, there were no such operating losses or other liabilities. Mining Risk The risk of underground water inflows and other underground risks is insured on a limited basis, subject to insurance market availability. Legal and Other Matters The Company is engaged in ongoing site assessment and/or remediation activities at a number of facilities and sites, and anticipated costs associated with these matters are added to accrued environmental costs in the manner described in Note 20. Environmental Remediation The Company has established provisions for environmental site assessment and/or remediation matters to the extent that expenses associated with those matters are considered likely to be incurred by the Company. Except for the uncertainties described below, the Company does not believe that its future obligations with respect to these matters are reasonably likely to have a material adverse effect on its consolidated financial statements. Legal matters with significant uncertainties include the following: • The US Environmental Protection Agency (“EPA”) has an ongoing enforcement initiative directed at the phosphate industry related to the scope of an exemption for mineral processing wastes under the US Resource Conservation and Recovery Act (“RCRA”). This initiative affects the Conda Phosphate plant previously owned by Nu-West (“Nu-West”), Nu-West • In August 2015, the US EPA finalized amendments to the hazardous air pollutant emission standards for phosphoric acid manufacturing and phosphate fertilizer production (“Final Rule”). Required emissions testing at the Company’s Aurora facility in 2016 indicated alleged exceedances of the mercury emission limits that were established by the Final Rule. The Company has communicated with the relevant agencies about this issue and petitioned the US EPA to reconsider the mercury emission limits. The facility also entered into an agreed order with the North Carolina Department of Environmental Quality in November 2016 to resolve the alleged mercury exceedances and provide a plan and schedule for evaluating alternative compliance strategies. Given the pending legal issues and the Company’s evaluation of alternative compliance strategies, the resulting cost of compliance with the various provisions of the Final Rule cannot be predicted with reasonable certainty at this time. • The Company operates in countries which are parties to the Paris Agreement adopted in December 2015 pursuant to the United Nations Framework Convention on Climate Change. Each country that is a party to the Paris Agreement submitted an Intended Nationally Determined Contribution (“INDC”) toward the control of greenhouse gas emissions. The impacts on the Company’s operations of these INDCs and other national and local efforts to limit or tax greenhouse gas emissions cannot be determined with any certainty at this time. In addition, various other claims and lawsuits are pending against the Company in the ordinary course of business. While it is not possible to determine the ultimate outcome of such actions at this time, and inherent uncertainties exist in predicting such outcomes, it is the Company’s belief that the ultimate resolution of such actions is not reasonably likely to have a material adverse effect on its consolidated financial statements. The breadth of the Company’s operations and the global complexity of tax regulations require assessments of uncertainties and judgments in estimating the taxes it will ultimately pay. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions, outcomes of tax litigation and resolution of disputes arising from federal, provincial, state and local tax audits. The resolution of these uncertainties and the associated final taxes may result in adjustments to the Company’s tax assets and tax liabilities. The Company owns facilities that have been either permanently or indefinitely shut down. It expects to incur nominal annual expenditures for site security and other maintenance costs at certain of these facilities. Should the facilities be dismantled, certain other shutdown-related costs may be incurred. Such costs are not expected to have a material adverse effect on the Company’s consolidated financial statements and would be recognized and recorded in the period in which they are incurred. |
Accounting Policies, Estimates
Accounting Policies, Estimates and Judgments | 12 Months Ended |
Dec. 31, 2018 | |
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Accounting Policies, Estimates and Judgments | ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS Accounting Policies, Estimates and Judgments The following table discusses the significant accounting policies, estimates, judgments and assumptions, in addition to those disclosed elsewhere in these consolidated financial statements, that the Company has adopted and made and how they affect the amounts reported in the consolidated financial statements. Certain of the Company’s policies involve accounting estimates and judgments because they require the Company to make subjective or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts could be reported under different conditions or using different assumptions. Topic Accounting Policies Accounting Estimates and Judgments Principles of Consolidation These consolidated financial statements include the accounts of the Company and entities controlled by it (its subsidiaries). Control is achieved by having each of: • power over the investee to direct the relevant activities of the investee; • exposure, or rights, to variable returns from involvement with the investee; and • the ability for the Company to use its power over the investee to affect the amount of the Company’s returns. Judgment involves: • assessing control, including if the Company has the power to direct the relevant activities of the investee; and • determining the relevant activities and which party controls them. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. Consideration is given to: • voting rights; • the relative size and dispersion of the voting rights held by other shareholders; • the extent of participation by those shareholders in appointing key management personnel or board members; • the right to direct the investee to enter into transactions for the Company’s benefit; and • the exposure, or rights, to variability of returns from the Company’s involvement with the investee. Principal (wholly owned) Operating Subsidiaries: Location Principal Activity • Potash Corporation of Saskatchewan, Inc. Canada Mining and/or processing of crop nutrient products and corporate functions • Agrium, Inc. Canada Manufacturer and distributor of crop nutrients and corporate functions • Agrium Canada Partnership Canada Manufacturer and distributor of crop nutrients • Agrium Potash Ltd. Canada Manufacturer and distributor of crop nutrients • Agrium U.S. Inc. United States Manufacturer and distributor of crop nutrients • Nutrien Ag Solutions Argentina S.A. (Argentina) Argentina Crop input retailer • Cominco Fertilizer Partnership United States Manufacturer and distributor of crop nutrients • Nutrien Ag Solutions, Inc. United States Crop input retailer • Nutrien Ag Solutions (Canada) Inc. Canada Crop input retailer • Landmark Operations Ltd. Australia Crop input retailer • Loveland Products Inc. United States Crop input developer and retailer • PCS Sales (Canada) Inc. Canada Marketing and sales of the Company’s products • PCS Sales (USA), Inc. United States Marketing and sales of the Company’s products • PCS Phosphate Company, Inc. – PCS Purified Phosphates United States Mining and/or processing of phosphate products in the states of North Carolina, Illinois, Missouri and Nebraska Topic Accounting Policies Accounting Estimates and Judgments • PCS Nitrogen Fertilizer, L.P. United States Production of nitrogen products in the states of Georgia and Louisiana, and of phosphate products in the state of Louisiana • PCS Nitrogen Ohio, L.P. United States Production of nitrogen products in the state of Ohio • PCS Nitrogen Trinidad Limited Trinidad Production of nitrogen products in Trinidad • White Springs Agricultural Chemicals, Inc. (“White Springs”) United States Mining and processing of phosphate products in the state of Florida Intercompany balances and transactions are eliminated on consolidation. Long-Lived Asset Impairment At the end of each reporting period, the Company reviews conditions to determine whether there is any indication that an impairment exists that could potentially impact the carrying amounts of both its long-lived assets to be held and used and its identifiable intangible assets with finite lives. When such indicators exist, impairment testing is performed. Regardless, goodwill is tested at least annually (in the fourth quarter). To assess impairment, assets are grouped at the smallest levels for which there are separately identifiable cash inflows that are largely independent of the cash inflows from other assets or groups of assets (this can be at the asset or CGU level). Where impairment indicators exist for the asset or CGU: • the recoverable amount is estimated (the higher of FVLCD and value in use); • to assess value in use, the estimated future cash flows are discounted to their present value (using a pre-tax • the impairment loss is the amount by which the carrying amount exceeds its recoverable amount; and • the impairment loss is allocated first to reduce the carrying amount of any related goodwill and then pro rata to each asset in the unit (on the basis of the carrying amount). Non-financial Judgment involves: • identifying the appropriate asset or CGU; • determining the appropriate discount rate for assessing value in use; and • making assumptions about future sales, margins and market conditions over the long-term life of the assets or CGUs. The Company cannot predict if an event that triggers impairment will occur, when it will occur or how it will affect reported asset amounts. Asset impairment amounts previously recorded could be affected if different assumptions were used or if market and other conditions change. Such changes could result in non-cash Impairments were recognized during 2018 and 2017 as shown in Note 16. Topic Accounting Policies Accounting Estimates and Judgments Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. Fair value measurements are categorized into levels based on the degree to which inputs are observable and their significance: Fair value estimates: • are at a point-in-time • can be determined using multiple methods, which can cause values (or a range of reasonable values) to differ; and • may require assumptions about costs/prices over time, discount and inflation rates, defaults and other relevant variables. Determination of the level hierarchy is based on the Company’s assessment of the lowest level input that is significant to the fair value measurement and is subject to estimation and judgment. Level 1 Level 2 Level 3 Unadjusted quoted prices (in active markets accessible at the measurement date for identical assets or liabilities). Quoted prices (in markets that are not active or based on inputs that are observable for substantially the full term of the asset or liability). Prices or valuation techniques that require inputs that are both unobservable and significant to the overall measurement. Restructuring Charges Plant shutdowns, sales of business units or other corporate restructurings may trigger restructuring costs. Incremental costs for employee termination, contract termination and other exit costs are recognized as a liability and an expense when: • a detailed formal plan for restructuring has been demonstrably committed to; • withdrawal is without realistic possibility; and • a reliable estimate can be made. Restructuring activities are complex, can take several months to complete and usually involve reassessing estimates throughout the process. Foreign Currency Transactions Items included in the consolidated financial statements of the Company and each of its subsidiaries are measured using the currency of the primary economic environment in which the individual entity operates (“the functional currency”). Foreign exchange gains and losses resulting from the settlement of foreign currency transactions, and from the translation at period-end Translation differences from non-monetary non-monetary Non-monetary The consolidated financial statements are presented in US dollars, which was determined to be the functional currency of the Company and the majority of its subsidiaries. Standards, Amendments and Interpretations Effective and Applied The International Accounting Standards Board (“IASB”) and IFRS Interpretations Committee (“IFRIC”) have issued certain standards and amendments or interpretations to existing standards that were effective and applied by the Company. The standards disclosed below had a material impact or disclosure impact to the Company’s consolidated financial statements. Standard Description Impact IFRS 15, Revenue from Contracts With Customers Issued to provide guidance on the recognition of revenue from contracts with customers, including multiple-element arrangements and transactions not previously addressed comprehensively, and enhance disclosures about revenue. Adopted using the modified retrospective method effective January 1, 2018, with required disclosures included in Note 4. No cumulative adjustment is required to the opening balance of retained earnings. The Company elected to use the practical expedient related to the adjustment of the promised consideration for the effects of a significant financing component as the expected period between when control over a promised good or service is transferred and when the customer pays for that good or service is less than 12 months. The Company sells certain retail products to end-customers with a right of return. Therefore, a refund liability and a right to the returned goods (included in inventory) are now recognized separately for the products expected to be returned. IFRS 9, Financial Instruments Issued to replace International Accounting Standards (“IAS”) 39, providing guidance on the classification, measurement and disclosure of financial instruments and introducing a new hedge accounting model. On adoption of IFRS 9, in accordance with transitional provisions, the Company has not restated prior periods but has reclassified the financial assets held at January 1, 2018, retrospectively, based on the new classification requirements and the characteristics of each financial instrument at the transition date. For financial liabilities, IFRS 9 retains most of the IAS 39 requirements. The Company did not designate any financial liabilities at fair value through profit or loss; therefore, the adoption of IFRS 9 did not impact the Company’s accounting policies for financial liabilities. Refer to Note 13 for details. In addition, there was no change in the classification of the derivative instruments. The Company adopted the new general hedge accounting model under IFRS 9. This requires the Company to ensure that the hedge accounting relationships are aligned with its risk management objective and strategy and to apply a more qualitative and forward-looking approach to assess hedge effectiveness. The Company also reclassified realized cash flow hedges as a basis adjustment to finished goods inventory, recorded directly through accumulated other comprehensive income (net of income taxes). Financial Instrument Category under IAS 39 Category under IFRS 9 Financial assets Cash and cash equivalents FVTPL FVTPL Receivables Loans and receivables Amortized cost Derivatives FVTPL FVTPL Derivatives designated as hedges FV – hedging instrument FV – hedging instrument Prepaid expenses and other current assets – marketable securities FVTPL FVTPL Investments – equity securities Available-for-sale FVTOCI Investments – equity securities FVTPL FVTPL Financial liabilities Short-term and long-term debt Amortized cost Amortized cost Payables and accrued charges, excluding derivatives Amortized cost Amortized cost IFRS 9 replaces the incurred loss model in IAS 39 with an expected credit loss model. This applies to financial assets measured at amortized cost. Under IFRS 9, credit losses are recognized earlier than under IAS 39. This change did not have a material impact to the Company’s receivables. Standards, Amendments and Interpretations Not Yet Effective and Not Applied The IASB and IFRIC have issued the following standards, amendments or interpretations to existing standards that were not yet effective and not applied as at December 31, 2018. Standard Description Expected Impact Effective Date 1 IFRS 16, Leases Issued to supersede IAS 17 and related right-of-use ROU assets represent the right to use non-cancellable The Company has substantially completed its Compared with the existing accounting for operating leases, The Company’s assessment will not result in recognition of non-lease non-lease The adoption will result in an increase to property, plant January 1, 2019, short-term 1 Effective date for annual periods beginning on or after the stated date. The following amended standards and interpretations are not expected to have a material impact on the Company’s consolidated financial statements: The following amended standards and interpretations are being reviewed by the Company to determine the potential impact on the Company’s consolidated financial statements: • IFRIC 23, Uncertainty Over Income Tax Treatments • Conceptual Framework for Financial Reporting • Amendments to IAS 28, Long-term Interests in Associates and Joint Ventures • IFRS 17, Insurance Contracts • Amendments to IAS 1 and IAS 8, Definition of Material • Amendments to IAS 19, Employee Benefits • Amendments to IFRS 3, Business Combinations • Amendments to IAS 12, Income Taxes • Amendments to IAS 23, Borrowing Costs |
Comparative Figures
Comparative Figures | 12 Months Ended |
Dec. 31, 2018 | |
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Comparative Figures | COMPARATIVE FIGURES As described in Note 1, the comparative figures are PotashCorp only. To conform with Nutrien’s new method of presentation, comparative figures were reclassified and additional 2017 information was provided, with no impact to net earnings, total assets and liabilities, and cash provided by operating activities. The following additional information is retrospectively included in the 2017 comparatives to conform with current year presentation: • Note 4 Segment Information, the first table on page 106 contains an analysis by segment of selling expenses, general and administrative expenses, other operating expenses and EBITDA. • Note 25 Capital Management includes a line item for EBITDA and adjusted EBITDA was revised to conform with Nutrien’s definition. Refer to Notes 4, 5, 6, 7, 12 and 25 for further information specific to this additional information and the reclassifications within the tables. Consolidated Statement of Earnings For the Year Ended December 31, 2017 Previously Reclassification Reported after Cost of goods sold $ (3,335 ) $ 19 $ (3,316 ) Selling and administrative expenses (214 ) 214 – Selling expenses – (29 ) (29 ) General and administrative expenses – (185 ) (185 ) Provincial mining and other taxes (151 ) 5 (146 ) Merger and related costs (84 ) 84 – Other expenses (17 ) (108 ) (125 ) $ (3,801 ) $ – $ (3,801 ) Consolidated Statement of Comprehensive Income For the Year Ended December 31, 2017 Previously Reported Reclassification Amounts Reported after Other $ 3 $ 17 $ 20 Cash flow hedges Net fair value loss during the period (17 ) 17 – Reclassification of net gain to earnings 34 (34 ) – $ 20 $ – $ 20 Consolidated Statement of Cash Flows For the Year Ended December 31, 2017 Previously Reported Reclassification Amounts Reported after Pension and other post-retirement benefits $ 64 $ (64 ) $ – Net undistributed earnings of equity-accounted investees (1 ) 1 – Asset retirement obligations and accrued environmental costs 7 (7 ) – Other long-term liabilities and miscellaneous 21 70 91 $ 91 $ – $ 91 Consolidated Statements of Shareholders’ Equity As at December 31, 2017 Previously Reported Reclassification Amounts Reported after Other $ (5 ) $ (41 ) $ (46 ) Net loss on derivatives designated as cash flow hedges (43 ) 43 – Loss on currency translation of foreign operations – (2 ) (2 ) $ (48 ) $ – $ (48 ) As at December 31, 2016 Previously Reported Reclassification Amounts Reported after Other $ (8 ) $ (58 ) $ (66 ) Net loss on derivatives designated as cash flow hedges (60 ) 60 – Loss on currency translation of foreign operations – (2 ) (2 ) $ (68 ) $ – $ (68 ) Consolidated Balance Sheet As at December 31, 2017 Previously Reclassification Reported after Intangible assets $ 166 $ (166 ) $ – Goodwill – 97 97 Other intangible assets – 69 69 $ 166 $ – $ 166 Investments in equity-accounted investees $ 30 $ (30 ) $ – Available-for-sale 262 (262 ) – Investments – 292 292 $ 292 $ – $ 292 Short-term debt and current portion of long-term debt $ 730 $ (730 ) $ – Short-term debt – 730 730 $ 730 $ – $ 730 Payables and accrued charges $ 807 $ 29 $ 836 Current portion of derivative instrument liabilities 29 (29 ) – $ 836 $ – $ 836 Other non-current $ 51 $ 35 $ 86 Derivative instrument liabilities 35 (35 ) – $ 86 $ – $ 86 |
Business Combinations (Policies
Business Combinations (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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Business Combination | Accounting Policies Accounting Estimates and Judgments • The acquisition method is followed. • Consideration is measured at the aggregate of the fair values of assets transferred, liabilities incurred or assumed, and equity instruments issued in exchange for control of the acquiree at the acquisition date. • The acquisition date is the date the Company obtains control over the acquiree. • Identifiable assets acquired and liabilities assumed are generally measured at fair value. • Acquisition-related costs are recognized in net earnings as incurred. • The excess of total consideration for each acquisition plus non-controlling • Purchase price allocation involves judgment in identifying assets acquired and liabilities assumed and estimation of their fair values. • Judgment is required to determine which entity is the acquirer in a merger of equals. In identifying PotashCorp as the acquirer, the companies considered the voting rights of all equity instruments, the intended corporate governance structure of the combined company, the intended composition of senior management of the combined company and the size of each of the companies. In assessing the size of each of the companies, the companies evaluated various metrics. No single factor was the sole determinant in the overall conclusion that PotashCorp is the acquirer for accounting purposes; rather, all factors were considered in arriving at the conclusion. |
Operating Segments | Accounting Policies Accounting Estimates and Judgments Operating Segments Prior to the Merger, the Company identified the Chief Executive Officer as the Chief Operating Decision Maker (“CODM”) under IFRS and used gross margin to measure the segments’ profit or loss. The operating segments were limited to the following: Potash, Nitrogen and Phosphate. The changes in the structure of the Company’s internal organization as a result of the Merger caused the composition of the operating segments to change as well as who the Company identified to be the CODM. Post-Merger, the Company identified the Executive Leadership Team (“ELT”), comprised of officers at the Executive Vice President level and above, as the CODM. The CODM uses net (loss) earnings before finance costs, income taxes, and depreciation and amortization (“EBITDA”) to measure performance and allocate resources to the operating segments. The CODM believes EBITDA to be an important measure as it excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions, rather than the performance of the Company’s day-to-day In 2019, the Company’s CODM reassessed product groupings and decided to evaluate the performance of sulfate products as part of the Nitrogen segment, rather than the Phosphate and Sulfate segment; therefore, future comparative figures will be restated for the change in the composition of the segments, which will result in an increase in the Nitrogen segment and a decrease in the Phosphate and Sulfate segment. For the year ended December 31, 2018, this change will be approximately $121, $42, and $69 in sales, gross margin and EBITDA, respectively. Operating Segments Judgment is used in determining the composition of the reportable segments based on factors including risks and returns, internal organization, and internal reports reviewed by the CODM. Certain expenses are allocated across segments based on an appropriate basis such as production capacities or historical trends. |
Revenue | Accounting Policies Accounting Estimates and Judgments • Seed – various third-party supplier seed brands and proprietary seed product lines; • Merchandise – sales of fencing, feed supplements, livestock-related animal health products, storage and irrigation equipment, and other products; and • Services and other revenues – sales of product application, soil and leaf testing, crop scouting and precision agriculture services, financial services and livestock marketing. Provisions for returns, trade discounts and rebates are deducted from sales revenue. Potash, Nitrogen, and Phosphate and Sulfate The Company manufactures and sells potash, nitrogen, and phosphate and sulfate products. While agriculture is the Company’s primary market, it also produces products for animal nutrition and industrial uses. The Company’s sales revenue is recorded and measured based on the “freight on board” mine, plant, warehouse or terminal price specified in the contract (except for certain vessel sales or specific product sales that are shipped and recorded on a delivered basis), which reflects the consideration the Company expects to be entitled to in exchange for the goods or services, net of any variable consideration (e.g., any trade discounts or estimated volume rebates). Where volume rebates are provided for in customer contracts, the Company estimates revenue at the earlier of the most likely amount of consideration expected to be received or when the consideration becomes fixed. The Company’s customer contracts may provide certain product quality specification guarantees but do not generally provide for refunds or returns. Sales prices are based on North American and International benchmark market prices which are variable and subject to global supply and demand, and competitive factors. Potash Nitrogen Phosphate and Sulfate Products • North American – primarily granular • Offshore (International) – primarily granular and standard • Ammonia, urea, urea ammonium nitrate, and industrial grade ammonium nitrate • Solid fertilizer, liquid fertilizer, industrial products and feed products Sales prices impacted by • North American prices referenced at delivered prices (including transportation and distribution costs) • International prices referenced at the mine site (excluding transportation and distribution costs) • Global energy costs and supply • Global ammonia and sulfur costs and supply Other The Company does not provide general warranties. Intersegment sales are made under terms that approximate market value. Transportation costs are generally recovered from the customer through sales pricing. Seasonality in the Company’s business results from increased demand for products during planting season. Crop input sales are generally higher in spring and fall crop input application seasons. Crop nutrient inventories are normally accumulated leading up to each application season. The Company’s cash collections generally occur after the application season is complete while customer prepayments are concentrated in December and January. |
Cost of goods sold | Cost of goods sold represents the cost of purchasing products for resale and costs primarily incurred at, and charged to, producing facilities. |
Selling and general and administrative expenses | The primary components of selling and general and administrative expenses are compensation, other employee costs, depreciation and amortization, other operating leases and fleet fuel, repairs and maintenance. |
Income Taxes | Accounting Policies Accounting Estimates and Judgments The Company operates in a specialized industry and in several tax jurisdictions. As a result, its income is subject to various rates of taxation. Taxation on items recognized in the consolidated statements of earnings, other comprehensive income (“OCI”) or contributed surplus is recognized in the same location as those items. Taxation on (loss) earnings is comprised of current and deferred income tax. Estimates and judgments to determine the Company’s taxes are impacted by: • the breadth of the Company’s operations; and • global complexity of tax regulations. The final taxes paid, and potential adjustments to tax assets and liabilities, are dependent upon many factors including: • negotiations with taxation authorities in various jurisdictions; • outcomes of tax litigation; and • resolution of disputes arising from federal, provincial, state and local tax audits. Estimates and judgments are used to recognize the amount of deferred tax assets, which: • includes the probability that future taxable profit will be available to use deductible temporary differences, and could be reduced if projected earnings are not achieved or increased if earnings previously not projected become probable. Current income tax is: Deferred income tax is: • the expected tax payable on the taxable earnings for the year; • calculated using rates enacted or substantively enacted at the dates of the consolidated balance sheets in the countries where the Company’s subsidiaries, held for sale investees and equity-accounted investees operate and generate taxable earnings; and • inclusive of any adjustment to income tax payable or recoverable in respect of previous years. • recognized using the liability method; • based on temporary differences between financial statements’ carrying amounts of assets and liabilities and their respective income tax bases; and • determined using tax rates that have been enacted or substantively enacted by the dates of the consolidated balance sheets and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Uncertain income tax positions are accounted for using the standards applicable to current income tax liabilities and assets, i.e., both liabilities and assets are recorded when probable and measured at the amount expected to be paid to (recovered from) the taxation authorities using the Company’s best estimate of the amount. Deferred income tax is not accounted for: • with respect to investments in subsidiaries and equity-accounted investees where the Company is able to control the reversal of the temporary difference and that difference is not expected to reverse in the foreseeable future; and • if arising from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit or loss. The realized and unrealized excess tax benefits from share-based payment arrangements are recognized in contributed surplus as current and deferred tax, respectively. Deferred income tax assets are reviewed at each balance sheet date and amended to the extent that it is no longer probable that the related tax benefit will be realized. Income tax assets and liabilities are offset when: For current income taxes, the Company has: For deferred income taxes: • a legally enforceable right to offset the recognized amounts 1 • the intention to settle on a net basis or realize the asset and settle the liability simultaneously. • the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and • they relate to income taxes levied by the same taxation authority on either: 1) the same taxable entity; or 2) different taxable entities intending to settle current tax liabilities and assets on a net basis, or realize assets and settle liabilities simultaneously in each future period. 2 1 For income taxes levied by the same taxation authority and the authority permits the Company to make or receive a single net payment or receipt. 2 In which significant amounts of deferred tax liabilities or assets expected are to be settled or recovered. |
Assets Held for Sale and Discontinued Operations | Accounting Policies Accounting Estimates and Judgments The Company classifies assets and liabilities as held for sale if it is highly probable that the carrying value will be recovered through a sale transaction within one year rather than through continuing use. Discontinued operations represent a component of the Company’s business that either has been disposed of, or is classified as held for sale, and represents a separate major line of business or geographic area of operations or is a part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations. The Company’s significant policies include: • cessation of equity accounting for associates and joint ventures at the date the investments were classified as held for sale; • measurement of assets at the lower of carrying amount and fair value less costs to sell, with the exception of financial assets measured at FVTOCI; • unrealized gains and losses on remeasurement of investments measured at FVTOCI are recorded, net of related income taxes, to OCI; • dividends received are recorded on the consolidated statements of earnings; and • the comparative statements of earnings and OCI are restated as if the operation had been discontinued from the start of the comparative year. Expected cost to sell the investments requires estimation, which is based on several factors such as historical trends of similar types of investments sold, the percentage of investments held relative to the total shares in circulation and the type of the investment. Judgment involves determining: • whether the highly probable standard is met and the date when equity accounting ceases; and • if the business component for sale or disposal meets the criteria of a discontinued operation. |
Cash Flow | Accounting Policy Highly liquid investments with a maturity of three months or less from the date of purchase are considered to be cash equivalents. |
Financial Instruments and Related Risk Management | Accounting Policies Accounting Estimates and Judgments Financial instruments are classified and measured as follows: Judgment is required to determine whether the right to offset is legally enforceable. Fair Value FVTOCI Financial Assets and 1 For derivatives or embedded derivatives, the most Instrument type Cash and cash equivalents and derivatives Equity investments not held for trading Receivables, short-term debt, payables and accrued charges, long-term debt, other long-term debt instruments Measurement Fair value Fair value Amortized cost Fair value gains and losses Profit or loss OCI 2 – Interest and dividends Profit or loss Profit or loss Profit or loss: effective interest rate Impairment of assets – – Profit or loss Foreign exchange Profit or loss OCI Profit or loss Transaction costs Profit or loss OCI Included in cost of instrument 1 Amortized cost is applied if the objective of the business model for the instrument or group of instruments is to hold the asset to collect the contractual cash flows and the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest. 2 For equity investments not held for trading, the Company may make an irrevocable election at initial recognition to recognize changes in fair value through OCI rather than profit or loss. The Company made this election for its investments in ICL, Sinofert and certain equity investments as the investments are held for strategic purposes. Accounting Policies Accounting Estimates and Judgments Financial instruments are recognized at trade date when the Company commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or the Company has transferred them, and all the risks and rewards of ownership have been substantially transferred. Derivatives are used to lock in commodity prices and exchange rates. For designated and qualified cash flow hedges: • the effective portion of the change in the fair value of the derivative is accumulated in OCI; • when the hedged forecast transaction occurs, the related gain or loss is removed from AOCI and included in the cost of inventory; • the hedging gain or loss included in the cost of inventory is recognized in earnings when the product containing the hedged item is sold or becomes impaired; and • the ineffective portions of hedges are recorded in net earnings in the current period. The Company also assesses whether the natural gas derivatives used in hedging transactions are expected to be or were highly effective, both at the hedge’s inception and on an ongoing basis, in offsetting changes in fair values of hedged items. Hedge effectiveness related to the Company’s New York Mercantile Exchange (“NYMEX”) natural gas hedges is assessed on a prospective and retrospective basis using regression analyses. The Company’s Alberta Energy Company (“AECO”) natural gas hedges are assessed using a qualitative assessment. Potential sources of ineffectiveness are changes in timing of forecast transactions, changes in volume delivered or changes in credit risk of the Company or the counterparty. Financial assets and financial liabilities are offset and the net amount is presented in the consolidated balance sheets when the Company: • currently has a legally enforceable right to offset the recognized amounts; and • intends either to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. See Note 32 for discussion related to the policies, estimates and judgments for fair value measurements. |
Trade Receivables | Accounting Policies Accounting Estimates and Judgments Trade accounts receivable are recognized initially at fair value and subsequently measured at amortized cost less provision for impairment of trade accounts receivable. When a trade account receivable is uncollectible, it is written off against the provision. Subsequent recoveries of amounts previously written off are credited to the consolidated statements of earnings. Vendors may offer various incentives to purchase products for resale. Vendor rebates and prepay discounts are accounted for as a reduction of the prices of the suppliers’ products. Rebates based on the amount of materials purchased reduce cost of goods sold as inventory is sold. Rebates are offset based on sales volumes to cost of goods sold if the rebate has been earned based on sales volumes of products. Rebates that are probable and can be reasonably estimated are accrued. Rebates that are not probable or estimable are accrued when certain milestones are achieved. Rebates not covered by binding agreements or published vendor programs are accrued when conclusive documentation of right of receipt is obtained. Determining when amounts are deemed uncollectible requires judgment. Estimation of rebates can be complex in nature as vendor arrangements are diverse. The amount of the accrual is determined by analyzing and reviewing historical trends to apply negotiated rates to estimated and actual purchase volumes. Estimated amounts accrued throughout the year could also be impacted if actual purchase volumes differ from projected volumes. |
Summary of Inventories | Accounting Policies Accounting Estimates and Judgments Inventories are valued monthly at the lower of cost and net realizable value. Costs are allocated to inventory using the weighted average cost method and include: direct acquisition costs, direct costs related to units of production and a systematic allocation of fixed and variable production overhead, as applicable. Net realizable value is based on: Judgment is used to allocate production overhead to inventories and to determine net realizable value, including the appropriate measure and inputs of a combination of interrelated demand and supply variables. For products purchased for resale, finished products, intermediate products and raw materials For materials and supplies • selling price of the finished product (in ordinary course of business); • less the estimated costs of completion; and • less the estimated costs to make the sale. • replacement cost. A writedown is recognized if carrying amount exceeds net realizable value and may be reversed if the circumstances which caused it no longer exist. |
Property, Plant and Equipment | Accounting Policies Accounting Estimates and Judgments Property, plant and equipment (which include certain mine development costs, pre-stripping Cost includes all expenditures directly attributable to bringing the asset to the location and installing it in working condition for its intended use, including: • additions to, and betterments and renewals of, existing assets; • borrowing costs incurred during construction using a capitalization rate based on the weighted average interest rate of the Company’s outstanding debt; and • a reduction for income derived from the asset during construction. Each component of an item of property, plant and equipment with a cost that is significant in relation to the item’s total cost is depreciated separately. When the cost of replacing part of an item of property, plant and equipment is capitalized, the carrying amount of the replaced part is derecognized. The cost of major inspections and overhauls is capitalized and depreciated over the period until the next major inspection or overhaul. Maintenance and repair expenditures that do not improve or extend productive life are expensed in the period incurred. Environmental costs related to current operations are also capitalized if: • property life is extended; • capacity is increased; • contamination from future operations is mitigated or prevented; or • related to legal or constructive asset retirement obligations. Judgment involves determining: • costs, including income or expenses derived from an asset under construction, that are eligible for capitalization; • timing to cease cost capitalization, generally when the asset is capable of operating in the manner intended by management, but also considering the circumstances and the industry in which the asset is to be operated, normally predetermined by management with reference to such factors as productive capacity; • the appropriate level of componentization (for individual components for which different depreciation methods or rates are appropriate); • repairs and maintenance that qualify as major inspections and overhauls; and • useful life over which such costs should be depreciated. Certain property, plant and equipment directly related to the Potash, Nitrogen, and Phosphate and Sulfate segments are depreciated using the units-of-production Pre-stripping units-of-production The following estimated useful lives have been applied to the majority of property, plant and equipment assets as at December 31, 2018: Useful Life Range (years) Weighted Average Useful Life (years) 1 Land improvements 5 to 80 35 Buildings and improvements 2 to 60 38 Machinery and equipment 1 to 80 25 1 Weighted by carrying amount as at December 31, 2018. Estimated useful lives, expected patterns of consumption, depreciation method and residual values are reviewed at least annually with the effect of any changes in estimate being accounted for on a prospective basis. Uncertainties are inherent in estimating reserve quantities, particularly as they relate to assumptions regarding future prices, the geology of the Company’s mines, the mining methods used, and the related costs incurred to develop and mine its reserves. Changes in these assumptions could result in material adjustments to reserve estimates, which could result in impairments or changes to depreciation expense in future periods. |
Goodwill and Other Intangible Assets | Accounting Policies Accounting Estimates and Judgments Goodwill is carried at cost, is not amortized, and represents the excess of the cost of an acquisition over the fair value of the Company’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. An intangible asset is recognized when it is: • reliably measurable; • identifiable (separable or arises from contractual rights); • probable that expected future economic benefits will flow to the Company; and • controllable by the Company. Amortization is recognized in net earnings as an expense related to the function of the intangible asset. The following expenses are not recognized as an asset: • costs to maintain software programs; and • development costs that do not meet the capitalization criteria. Goodwill is allocated to CGUs or groups of CGUs for impairment testing based on the level at which it is monitored by management, and not at a level higher than an operating segment. The allocation is made to those CGUs or groups of CGUs expected to benefit from the business combination in which the goodwill arose. Judgment is applied in determining when expenditures are eligible for capitalization as intangible assets. Estimation is applied to determine expected useful lives used in the straight-line amortization of intangible assets with finite lives. The following estimated useful lives have been applied to finite-lived intangible assets as at December 31, 2018. Useful Life Range Customer relationships 6 to 15 Technology 3 to 7 Trade names 1 10 to 20 Other 1 to 30 1 Certain trade names have indefinite useful lives as there are no regulatory, legal, contractual, cooperative, economic or other factors that limit their useful lives. Useful lives are reviewed, and adjusted if appropriate, at least annually. |
Asset Retirement Obligations and Accrued Environmental Costs | Accounting Policies Accounting Estimates and Judgments Provisions are: • recognized for present legal or constructive obligations arising from past events where a future outflow of resources is probable, provided that amount can be reliably estimated; • measured at the present value of the cash flow expected to be required to settle the obligation; and • reviewed at the end of each reporting period for any changes, including the discount rate, foreign exchange rate and amount or timing of the underlying cash flows, and adjusted against the carrying amount of the provision and any related asset; otherwise, it is recognized in net earnings. A gain or loss may be incurred upon settlement of the liability. As a result of the Merger, the Company recognized contingent liabilities, which represents additional environmental costs that are present obligations of the Company although cash outflows of resources are not probable. These contingent liabilities are subsequently measured at the higher of the amount initially recognized and the best estimate of the expenditures to be incurred. Asset retirement obligations and accrued environmental costs include: • reclamation and restoration costs at the Company’s potash and phosphate mining operations, including management of materials generated by mining and mineral processing, such as various mine tailings and gypsum; • land reclamation and revegetation programs; • decommissioning of underground and surface operating facilities; • general cleanup activities aimed at returning the areas to an environmentally acceptable condition; and • post-closure care and maintenance. Estimates for provisions take into account: • most provisions will not be settled for a number of years; • environmental laws and regulations and interpretations by regulatory authorities could change or circumstances affecting the Company’s operations could change, either of which could result in significant changes to current plans; and • the nature, extent and timing of current and proposed reclamation and closure techniques in view of present environmental laws and regulations. It is reasonably possible that the ultimate costs could change in the future and that changes to these estimates could have a material effect on the Company’s financial statements. The Company uses appropriate technical resources, including outside consultants, to develop specific site closure and post-closure plans in accordance with the requirements of the various jurisdictions in which it operates. Other than certain land reclamation programs, settlement of the obligations is typically correlated with mine life estimates. |
Investments in Equity-Accounted Investees | Accounting Policies Accounting Estimates and Judgments Investments in Equity-Accounted Investees Investments in which the Company exercises significant influence (but does not control) or has joint control (as joint ventures) are accounted for using the equity method. Significant influence is the power to participate in the financial and operating policy decisions of the investee, commonly referred to as associates. The Company’s significant policies include: Investments in Equity-Accounted Investees and Investments at FVTOCI Judgment is necessary in determining: • when significant influence exists; and • if objective evidence of impairment exists for equity-accounted investees and, if so, the amount of impairment. Significant Policy Statement of Comprehensive Income Investment Proportionate share of net earnings (loss) adjusted for any fair value adjustments at acquisition date and differences in accounting policies Net earnings (loss) Increase (decrease) Gain (loss) on disposal Net earnings (loss) Increase (decrease) Proportionate share of post-acquisitions movements in OCI (loss) OCI (loss) Increase (decrease) Impairment (loss) reversal 1 Net earnings (loss) Increase (decrease) Dividends received – (Decrease) 1 An impairment test is performed when there is objective evidence of impairment, such as significant adverse changes in the environment in which the equity-accounted investee operates or a significant or prolonged decline in the fair value of the investment below its carrying amount. Investments at FVTOCI The fair value of investments designated as FVTOCI is recorded in the consolidated balance sheets, with unrealized gains and losses, net of related income taxes, recorded in AOCI. The Company’s significant policies include: • the cost of investments sold is based on the weighted average method; and • realized gains and losses on these investments remain in OCI, but the cumulative balance can be transferred to another equity reserve, such as retained earnings. |
Investments of FVTOCI | Investments at FVTOCI The fair value of investments designated as FVTOCI is recorded in the consolidated balance sheets, with unrealized gains and losses, net of related income taxes, recorded in AOCI. The Company’s significant policies include: • the cost of investments sold is based on the weighted average method; and • realized gains and losses on these investments remain in OCI, but the cumulative balance can be transferred to another equity reserve, such as retained earnings. |
Long-Term Debt | Accounting Policy Issue costs of long-term debt obligations are capitalized to long-term obligations and are amortized to expense over the term of the related liability using the effective interest method. |
Commitments | Accounting Policies Accounting Estimates and Judgments Leases entered into are classified as either finance or operating leases. Leases that transfer substantially all of the risks and rewards of ownership of property to the Company are accounted for as finance leases. They are capitalized at the commencement of the lease at the lower of the fair value of the leased property and the present value of the minimum lease payments. Property acquired under a finance lease is depreciated over the shorter of the period of expected use on the same basis as other similar property, plant and equipment and the lease term. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rental payments under operating leases are expensed in net earnings on a straight-line basis over the period of the lease. Refer to Note 32 for details pertaining to the impact of the adoption of IFRS 16 in 2019. Judgment is required in considering a number of factors to ensure that leases to which the Company is party are classified appropriately as operating or financing. Such factors include whether the lease term is for the major part of the asset’s economic life and whether the present value of minimum lease payments amounts to substantially all of the fair value of the leased asset. As at December 31, 2018, substantially all of the leases to which the Company is party have been classified as operating leases. |
Guarantees | Accounting Policies Guarantees are not recognized in the consolidated balance sheets, but are disclosed and include contracts or indemnifications that contingently require the Company to make payments to the guaranteed party based on: • changes in an underlying; • another entity’s failure to perform under an agreement; and • failure of a third party to pay its indebtedness when due. Guarantees are recorded by the Company and recognized as a financial instrument in the consolidated balance sheets when any of the triggering events above result in the Company becoming primarily liable to the contract. |
Pension and Other Post-Retirement Benefits | Accounting Policies Accounting Estimates and Judgments For employee retirement and other defined benefit plans: • accrued liabilities are recorded net of plan assets; • costs including current and past service costs, gains or losses on curtailments and settlements, and remeasurements are actuarially determined on a regular basis using the projected unit credit method; and • past service cost is recognized in net earnings at the earlier of when i) a plan amendment or curtailment occurs; or ii) related restructuring costs or termination benefits are recognized. Remeasurements, recognized directly in OCI in the period they occur, are comprised of actuarial gains and losses, return on plan assets (excluding amounts included in net interest) and the effect of the asset ceiling (if applicable). When a plan amendment occurs before a settlement, the Company recognizes past service cost before any gain or loss on settlement. Defined contribution plan costs are recognized in net earnings for services rendered by employees during the period. Estimates and judgments are required to determine discount rates, health care cost trend rates, projected salary increases, retirement age, longevity and termination rates. These assumptions are determined by management and are reviewed annually by the Company’s independent actuaries. The Company’s discount rate assumption is impacted by: • the weighted average interest rate at which each pension and other post-retirement plan liability could be effectively settled at the measurement date; • country specific rates; and • the use of a yield curve approach. 1 1 Based on the respective plans’ demographics, expected future pension benefits and medical claims, payments are measured and discounted to determine the present value of the expected future cash flows. The cash flows are discounted using yields on high-quality AA-rated non-callable |
Share-Based Compensation | Accounting Policies Accounting Estimates and Judgments The accounting for share-based compensation plans is fair value-based. The grant date is the date the Company and the employee have a shared understanding of the terms and conditions of the arrangement, at which time the Company confers on the employee the right to cash equity instruments, provided the specified vesting conditions, if any, are met. For those awards with performance conditions that determine the number of options or units to which employees will be entitled, measurement of compensation cost is based on the Company’s best estimate of the outcome of the performance conditions. For plans settled through the issuance of equity: • fair value for stock options is determined on grant date using the Black-Scholes-Merton option-pricing model; • fair value for PSUs is determined on grant date by projecting the outcome of performance conditions; • compensation expense is recorded over the period the plans vest (corresponding increase to contributed surplus); • forfeitures are estimated throughout the vesting period based on past experience and future expectations, and adjusted upon actual vesting; and • when exercised, the proceeds and amounts recorded in contributed surplus are recorded in share capital. For plans settled in cash: • a liability is recorded based on the fair value of the awards each period; • expense accrues from the grant date over the vesting period; and • fluctuations in fair value of the award and related compensation expense are recognized in the period the fluctuation occurs. Judgment involves determining: • the grant date; and • the fair value of share-based compensation awards at the grant date. Estimation involves determining: • stock option-pricing model assumptions as described in the weighted average assumptions table below; • forfeiture rate for options granted; • projected outcome of performance conditions for PSUs, including the relative ranking of the Company’s total shareholder return, including expected dividends, compared with a specified peer group using a Monte Carlo simulation option-pricing model and the outcome of the Company’s synergies relative to the target; and • the number of dividend equivalent units expected to be earned. PSUs vest based on the achievement of performance conditions over a three-year performance cycle. Changes to vesting assumptions may change based on non-market RSUs are not subject to performance conditions and vest at the end of the three-year vesting period. Changes to vesting assumptions are reflected in earnings immediately for compensation cost already recognized. |
Related Party Transactions | Accounting Policies A person or entity is considered a related party if it is: • an associate or joint venture of Nutrien; • a member of key management personnel, consisting of the Company’s directors and executives as disclosed in the Company’s 2018 Annual Information Form; • a post-employment benefit plan for the benefit of Nutrien employees; or • a person that has significant influence over Nutrien. |
Contingencies | Accounting Policies Accounting Estimates and Judgments Generally, a contingent liability arises from past events and is: • a possible obligation whose existence will be confirmed only by one or more uncertain future events or non-events • a present obligation not recognized because it is not probable an outflow of resources will be required to settle the obligation, or a reliable estimate of the amount cannot be made. Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. Where the Company is jointly and severally liable for an obligation, the part of the obligation that is expected to be met by other parties is treated as a contingent liability. The following judgments are required to determine the Company’s exposure to possible losses and gains related to environmental matters and other various claims and lawsuits pending: • prediction of the outcome of uncertain events (i.e., being virtually certain, probable, remote or undeterminable); • determination of whether recognition or disclosure in the consolidated financial statements is required; and • estimation of potential financial effects. Where no amounts are recognized, such amounts are contingent and disclosure may be appropriate. While the amount disclosed in the consolidated financial statements may not be material, the potential for large liabilities exists and, therefore, these estimates could have a material impact on the Company’s consolidated financial statements. |
Principles of Consolidation | Topic Accounting Policies Accounting Estimates and Judgments Principles of Consolidation These consolidated financial statements include the accounts of the Company and entities controlled by it (its subsidiaries). Control is achieved by having each of: • power over the investee to direct the relevant activities of the investee; • exposure, or rights, to variable returns from involvement with the investee; and • the ability for the Company to use its power over the investee to affect the amount of the Company’s returns. Judgment involves: • assessing control, including if the Company has the power to direct the relevant activities of the investee; and • determining the relevant activities and which party controls them. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. Consideration is given to: • voting rights; • the relative size and dispersion of the voting rights held by other shareholders; • the extent of participation by those shareholders in appointing key management personnel or board members; • the right to direct the investee to enter into transactions for the Company’s benefit; and • the exposure, or rights, to variability of returns from the Company’s involvement with the investee. Principal (wholly owned) Operating Subsidiaries: Location Principal Activity • Potash Corporation of Saskatchewan, Inc. Canada Mining and/or processing of crop nutrient products and corporate functions • Agrium, Inc. Canada Manufacturer and distributor of crop nutrients and corporate functions • Agrium Canada Partnership Canada Manufacturer and distributor of crop nutrients • Agrium Potash Ltd. Canada Manufacturer and distributor of crop nutrients • Agrium U.S. Inc. United States Manufacturer and distributor of crop nutrients • Nutrien Ag Solutions Argentina S.A. (Argentina) Argentina Crop input retailer • Cominco Fertilizer Partnership United States Manufacturer and distributor of crop nutrients • Nutrien Ag Solutions, Inc. United States Crop input retailer • Nutrien Ag Solutions (Canada) Inc. Canada Crop input retailer • Landmark Operations Ltd. Australia Crop input retailer • Loveland Products Inc. United States Crop input developer and retailer • PCS Sales (Canada) Inc. Canada Marketing and sales of the Company’s products • PCS Sales (USA), Inc. United States Marketing and sales of the Company’s products • PCS Phosphate Company, Inc. – PCS Purified Phosphates United States Mining and/or processing of phosphate products in the states of North Carolina, Illinois, Missouri and Nebraska |
Long-Lived Asset Impairment | Long-Lived Asset Impairment At the end of each reporting period, the Company reviews conditions to determine whether there is any indication that an impairment exists that could potentially impact the carrying amounts of both its long-lived assets to be held and used and its identifiable intangible assets with finite lives. When such indicators exist, impairment testing is performed. Regardless, goodwill is tested at least annually (in the fourth quarter). To assess impairment, assets are grouped at the smallest levels for which there are separately identifiable cash inflows that are largely independent of the cash inflows from other assets or groups of assets (this can be at the asset or CGU level). Where impairment indicators exist for the asset or CGU: • the recoverable amount is estimated (the higher of FVLCD and value in use); • to assess value in use, the estimated future cash flows are discounted to their present value (using a pre-tax • the impairment loss is the amount by which the carrying amount exceeds its recoverable amount; and • the impairment loss is allocated first to reduce the carrying amount of any related goodwill and then pro rata to each asset in the unit (on the basis of the carrying amount). Non-financial Judgment involves: • identifying the appropriate asset or CGU; • determining the appropriate discount rate for assessing value in use; and • making assumptions about future sales, margins and market conditions over the long-term life of the assets or CGUs. The Company cannot predict if an event that triggers impairment will occur, when it will occur or how it will affect reported asset amounts. Asset impairment amounts previously recorded could be affected if different assumptions were used or if market and other conditions change. Such changes could result in non-cash Impairments were recognized during 2018 and 2017 as shown in Note 16. |
Fair Value Measurements | Topic Accounting Policies Accounting Estimates and Judgments Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. Fair value measurements are categorized into levels based on the degree to which inputs are observable and their significance: Fair value estimates: • are at a point-in-time • can be determined using multiple methods, which can cause values (or a range of reasonable values) to differ; and • may require assumptions about costs/prices over time, discount and inflation rates, defaults and other relevant variables. Determination of the level hierarchy is based on the Company’s assessment of the lowest level input that is significant to the fair value measurement and is subject to estimation and judgment. Level 1 Level 2 Level 3 Unadjusted quoted prices (in active markets accessible at the measurement date for identical assets or liabilities). Quoted prices (in markets that are not active or based on inputs that are observable for substantially the full term of the asset or liability). Prices or valuation techniques that require inputs that are both unobservable and significant to the overall measurement. |
Restructuring Charges | Restructuring Charges Plant shutdowns, sales of business units or other corporate restructurings may trigger restructuring costs. Incremental costs for employee termination, contract termination and other exit costs are recognized as a liability and an expense when: • a detailed formal plan for restructuring has been demonstrably committed to; • withdrawal is without realistic possibility; and • a reliable estimate can be made. Restructuring activities are complex, can take several months to complete and usually involve reassessing estimates throughout the process. |
Foreign Currency Transactions | Foreign Currency Transactions Items included in the consolidated financial statements of the Company and each of its subsidiaries are measured using the currency of the primary economic environment in which the individual entity operates (“the functional currency”). Foreign exchange gains and losses resulting from the settlement of foreign currency transactions, and from the translation at period-end Translation differences from non-monetary non-monetary Non-monetary The consolidated financial statements are presented in US dollars, which was determined to be the functional currency of the Company and the majority of its subsidiaries. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Agrium Inc [member] | |
Statement [LineItems] | |
Summary of Fair Value Allocated to Assets and Liabilities | The final values that were allocated to Agrium’s assets and liabilities as at January 1, 2018 based upon fair values were as follows: Cash and cash equivalents $ 466 Receivables 1 2,600 Inventories 3,303 Prepaid expenses and other current assets 1,124 Assets held for sale 2 95 Property, plant and equipment 3 7,459 Goodwill 4 11,185 Other intangible assets 4 2,348 Investments 528 Other assets 5 198 Total assets 29,306 Short-term debt 867 Payables and accrued charges 6 5,239 Long-term debt 4,941 Deferred income tax liabilities 934 Pension and other post-retirement benefit liabilities 142 Asset retirement obligations and accrued environmental costs 6 1,094 Other non-current 79 Total liabilities 13,296 Net assets (consideration for the Merger) $ 16,010 1 Includes trade receivables with gross contractual amount of $2,247, of which $80 are considered to be uncollectible. 2 Relates to the assets held at the Company’s Conda Phosphate operations and North Bend nitric acid operations. The sale was completed on January 12, 2018. 3 Refer to Note 16 for detailed information of property, plant and equipment acquired. 4 Refer to Note 17 for detailed information on other intangible assets acquired and the allocation of goodwill to groups of cash generating units (“CGUs”). 5 Includes deferred income tax assets of $158. 6 Refer to Note 20 for detailed information of asset retirement obligations and accrued environmental costs acquired. Included in payables and accrued charges is $39 related to the current portion of asset retirement obligations and accrued environmental costs. |
Summary of Gross Sales and Net Earnings from Continuing Operations Before Income Taxes | The following table provides “gross sales” and “net earnings from continuing operations before income taxes”: 2018 Summary results of acquired operations of Agrium 1 Sales $ 14,551 Net earnings from continuing operations before income taxes $ 546 1 Results of acquired operations included in the Company’s consolidated statements of earnings for 2018. |
Retail Acquisitions [member] | |
Statement [LineItems] | |
Summary of Fair Value Allocated to Assets and Liabilities | The values allocated to the acquired assets and assumed liabilities based upon fair values were as follows as at December 31: 2018 Working capital $ 116 Property, plant and equipment 107 Goodwill 1 197 Other intangible assets 8 Other non-current 14 Other non-current (9 ) Total consideration $ 433 1 Goodwill was calculated as the difference between the amount of consideration transferred and the net identifiable assets acquired. Goodwill resulting from the acquisition is attributed to the assembled workforce, value of potential increase in customer base and synergies between Nutrien and the acquired companies. |
Summary of Gross Sales and Net Earnings from Continuing Operations Before Income Taxes | 2018 Financial information related to business acquisitions 1 Sales from date of acquisition $ 213 Net earnings from continuing operations before income taxes from date of acquisition $ 10 1 Estimated annual sales and earnings before finance costs, income taxes, and depreciation and amortization if acquisitions occurred at the beginning of the year are approximately $441 and $42, respectively. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Financial Information on Segments | Financial information on each of these segments is summarized in the following tables: 2018 Retail Potash Nitrogen Phosphate and Sulfate Others Eliminations Consolidated Sales – third party $ 12,620 $ 2,796 $ 2,651 $ 1,569 $ – $ – $ 19,636 – intersegment 50 220 566 328 – (1,164 ) – Sales – total 12,670 3,016 3,217 1,897 – (1,164 ) 19,636 Freight, transportation and distribution – (349 ) (358 ) (230 ) – 73 (864 ) Net sales 12,670 2,667 2,859 1,667 – (1,091 ) Cost of goods sold (9,635 ) (1,183 ) (2,079 ) (1,539 ) – 1,056 (13,380 ) Gross margin 3,035 1,484 780 128 – (35 ) 5,392 Selling expenses (2,303 ) (14 ) (32 ) (10 ) 22 – (2,337 ) General and administrative expenses (100 ) (10 ) (20 ) (9 ) (400 ) – (539 ) Provincial mining and other taxes – (244 ) (3 ) (1 ) (2 ) – (250 ) Impairment of property, plant and equipment (Note 16) – (1,809 ) – – – – (1,809 ) Other income (expenses) 75 (14 ) 8 (6 ) (106 ) – (43 ) Earnings (loss) before finance costs and income taxes 707 (607 ) 733 102 (486 ) (35 ) 414 Depreciation and amortization 499 404 429 206 54 – 1,592 EBITDA 1 $ 1,206 $ (203 ) $ 1,162 $ 308 $ (432 ) $ (35 ) $ 2,006 Assets 2 $ 17,964 $ 11,710 $ 10,009 $ 2,783 $ 3,678 $ (642 ) $ 45,502 1 EBITDA is a non-IFRS non-IFRS non-IFRS non-IFRS 2 Included in the Nitrogen and Retail segments are $428 and $208 relating to equity-accounted investees, respectively, as described in Note 21. 2017 Potash Nitrogen Phosphate Others Eliminations Consolidated Sales – third party $ 1,868 $ 1,395 $ 1,284 $ – $ – $ 4,547 – intersegment – 74 – – (74 ) – Sales – total 1,868 1,469 1,284 – (74 ) 4,547 Freight, transportation and distribution (235 ) (129 ) (173 ) – – (537 ) Net sales 1,633 1,340 1,111 – (74 ) Cost of goods sold 1 (829 ) (1,084 ) (1,477 ) – 74 (3,316 ) Gross margin 804 256 (366 ) – – 694 Selling expenses (7 ) (14 ) (6 ) (2 ) – (29 ) General and administrative expenses (7 ) (4 ) (4 ) (170 ) – (185 ) Provincial mining and other taxes (146 ) – – – – (146 ) Other expenses (19 ) (3 ) (4 ) (99 ) – (125 ) Earnings (loss) before finance costs and 625 235 (380 ) (271 ) – 209 Depreciation and amortization 232 203 220 37 – 692 EBITDA $ 857 $ 438 $ (160 ) $ (234 ) $ – $ 901 Assets 2 $ 9,756 $ 2,577 $ 1,938 $ 2,727 $ – $ 16,998 1 Included in the Phosphate and Sulfate segment is $305 of impairment of property, plant and equipment as described in Note 16. 2 Included in the total assets relating to the Others segment is $1,858 relating to the investments held for sale as described in Note 10. |
Summary of Financial Information by Geographical Area | Financial information by geographic area is summarized in the following tables: Country of Origin 2018 United States Canada Australia Trinidad Other Consolidated Sales to customers outside the Company United States $ 10,488 $ 1,249 $ – $ 153 $ 1 $ 11,891 Canada 208 2,582 – – – 2,790 Australia 2 – 1,679 – – 1,681 Canpotex 1 – 1,657 – – – 1,657 Mexico 70 – – 15 – 85 Trinidad 9 – – 181 – 190 Argentina 9 – – – 378 387 Brazil 38 – – – 74 112 Colombia 9 – – 42 – 51 Other Latin America 20 – – 59 92 171 India 151 – – – – 151 Europe 11 58 67 93 83 312 Other 22 – 100 32 4 158 $ 11,037 $ 5,546 $ 1,846 $ 575 $ 632 $ 19,636 Non-current 2 $ 14,501 $ 17,100 $ 607 $ 570 $ 621 $ 33,399 1 As described in Note 1, Canpotex executed offshore marketing, sales and distribution functions for certain of the Company’s products. Canpotex’s 2018 sales volumes were made to: Latin America 33%, China 18%, India 10%, Other Asian markets 31%, other markets 8% (Note 30). 2 Includes non-current Country of Origin 2017 United States Canada Trinidad Other Consolidated Sales to customers outside the Company United States $ 1,657 $ 784 $ 274 $ – $ 2,715 Canada 194 95 – – 289 Canpotex 1 – 988 – – 988 Mexico 76 – 9 – 85 Trinidad – – 132 – 132 Brazil 26 1 – – 27 Colombia 12 – 36 – 48 Other Latin America 26 – 42 – 68 India 97 – 7 – 104 Other 10 – 81 – 91 $ 2,098 $ 1,868 $ 581 $ – $ 4,547 Non-current 2 $ 3,259 $ 9,501 $ 554 $ 6 $ 13,320 1 Canpotex’s 2017 sales volumes were made to: Latin America 30%, China 18%, India 12%, Other Asian markets 33%, other markets 7% (Note 30). 2 Includes non-current |
Summary of Disaggregated Revenue from Contracts with Customers by Product Line or Geographic Location for Each Reportable Segment | The Company disaggregated revenue from contracts with customers by product line or geographic location for each reportable segment to show how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Year Ended December 31, Retail sales by product line 2018 2017 Crop nutrients $ 4,577 $ – Crop protection products 4,862 – Seed 1,687 – Merchandise 734 – Services and other 810 – $ 12,670 $ – Manufactured Potash sales by geography North America $ 1,359 $ 878 Offshore 1 1,657 990 $ 3,016 $ 1,868 1 Relates primarily to Canpotex (Note 30). Year Ended December 31, Nitrogen sales by product line 2018 2017 Manufactured Product Ammonia $ 1,061 $ 628 Urea 979 330 Solutions and nitrates 729 478 Other nitrogen and purchased products 448 33 $ 3,217 $ 1,469 Phosphate and Sulfate sales by product line Manufactured Product Fertilizer $ 1,141 $ 739 Industrial and Feed 469 537 Ammonium sulfate 96 – Other phosphate and purchased products 191 8 $ 1,897 $ 1,284 |
Nature of Expenses (Tables)
Nature of Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Detailed Information about Expenses by Nature | Supporting Information Expenses by nature were comprised of: Cost of Goods Sold Other Total 2018 2017 2018 2017 2018 2017 (Note 33) (Note 33) (Note 33) Purchased and produced raw materials and product for resale 1 $ 11,145 $ 1,724 $ – $ – $ 11,145 $ 1,724 Depreciation and amortization 1,038 655 554 37 1,592 692 Employee costs 2 713 563 1,236 113 1,949 676 Freight (direct and indirect) 303 – 631 372 934 372 Impairment of property, plant and equipment (Note 16) – 305 – – – 305 Offsite warehouse costs 3 – – 69 47 69 47 Railcar and vessel costs 3 – – 131 102 131 102 Merger and related costs – – 170 84 170 84 Other operating leases 38 – 110 – 148 – Fleet fuel, repairs and maintenance – – 183 – 183 – Other 143 69 699 121 842 190 Total $ 13,380 $ 3,316 $ 3,783 $ 876 $ 17,163 $ 4,192 Expenses included in: Freight, transportation and distribution $ 864 $ 537 Cost of goods sold 13,380 3,316 Selling expenses 2,337 29 General and administrative expenses 539 185 Other expenses 43 125 1 Significant expenses include: contract services, supplies, energy, fuel, purchases of raw material (natural gas – feedstock, sulfur, ammonia and reagents) and product for resale (crop nutrients and protection products, and seed). 2 Includes employee benefits and share-based compensation. In 2018, employee costs also include a $157 gain on curtailment of defined benefit pension and other post-retirement benefit plans (“Defined Benefit Plans Curtailment Gain”) as described in Note 28. 3 Includes expenses relating to operating leases. |
Provincial Mining and Other T_2
Provincial Mining and Other Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Detailed Information About Provincial Mining and Other Taxes | 2018 2017 (Note 33) Saskatchewan potash production tax $ 160 $ 95 Saskatchewan resource surcharge and other 90 51 $ 250 $ 146 |
Other Expenses (Tables)
Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Detailed Information About Other Income and Expenses | 2018 2017 (Note 33) Merger and related costs $ (170) $ (84) Defined Benefit Plans Curtailment Gain (Note 28) 157 – Foreign exchange gain (loss) 10 (21) Other expenses (40) (20) $ (43) $ (125) |
Finance Costs (Tables)
Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Finance Costs | 2018 2017 Interest expense Short-term debt $ 129 $ 9 Long-term debt 372 206 Unwinding of discount on asset retirement obligations (Note 20) 51 17 Interest on net defined benefit pension and other post-retirement plan obligations (Note 28) 15 19 Borrowing costs capitalized to property, plant and equipment (12) (11) Interest income (17) (2) $ 538 $ 238 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Provision for Income Taxes | The provision for income taxes differs from the amount that would have resulted from applying the Canadian statutory income tax rates to (loss) earnings before income taxes as follows: 2018 2017 (Loss) earnings before income taxes Canada $ (1,195 ) $ 123 United States 619 (271 ) Trinidad 98 95 Australia 96 – Other 258 24 $ (124 ) $ (29 ) Canadian federal and provincial statutory income tax rate 27 % 27 % Income tax at statutory rates $ 33 $ 8 Adjusted for the effect of: Impact of foreign tax rates (US, Trinidad, Australia and other) 58 (25 ) Production-related deductions 15 14 Non-taxable income 10 – Foreign accrual property income (15 ) (3 ) Impact of tax rate changes – 187 Other (8 ) 2 Income tax recovery included in net (loss) earnings from continuing operations $ 93 $ 183 |
Summary of Total Income Tax Expense | Total income tax recovery, included in net (loss) earnings from continuing operations, was comprised of the following: 2018 2017 Current income tax Tax expense for current year $ (195 ) $ (70 ) Adjustments in respect of prior years 15 (20 ) Total current income tax expense (180 ) (90 ) Deferred income tax Origination and reversal of temporary differences 283 69 Adjustments in respect of prior years (12 ) 20 Impact of tax rate changes – 187 Other 2 (3 ) Total deferred income tax recovery 273 273 Income tax recovery included in net (loss) earnings from continuing operations $ 93 $ 183 |
Summary of Income Tax Assets (Liabilities) | Income tax balances within the consolidated balance sheets as at December 31 were comprised of the following: Income Tax Assets (Liabilities) Balance Sheet Location 2018 2017 Current income tax assets Current Receivables (Note 14) $ 248 $ 24 Long-term Other assets (Note 18) 36 64 Deferred income tax assets Other assets (Note 18) 216 18 Total income tax assets $ 500 $ 106 Current income tax liabilities Current Payables and accrued charges (Note 19) $ (47 ) $ (16 ) Non-current Other non-current (64 ) (43 ) Deferred income tax liabilities Deferred income tax liabilities (2,907 ) (2,205 ) Total income tax liabilities $ (3,018 ) $ (2,264 ) |
Summary of Deferred Income Tax Assets (Liabilities) | In respect of each type of temporary difference, unused tax loss and unused tax credit, the amounts of deferred tax assets and liabilities recognized in the consolidated balance sheets as at December 31 and the amount of the deferred tax recovery (expense) recognized in net (loss) earnings from continuing operations were: Deferred Income Tax Assets Deferred Income Tax 2018 2017 2018 2017 Deferred income tax assets Asset retirement obligations and accrued environmental costs $ 412 $ 120 $ (11 ) $ (56 ) Tax loss and other carryforwards 261 13 198 (105 ) Pension and other post-retirement benefit liabilities 130 124 (44 ) (22 ) Long-term debt 110 – (10 ) – Receivables 58 – 3 – Inventories 54 4 13 (2 ) Derivatives 17 13 (15 ) – Other assets 57 11 (18 ) (11 ) Deferred income tax liabilities Property, plant and equipment (3,218 ) (2,441 ) 132 472 Goodwill and other intangible assets (546 ) (17 ) 31 – Other liabilities (26 ) (14 ) (6 ) (3 ) $ (2,691 ) $ (2,187 ) $ 273 $ 273 |
Summary of Reconciliation of Net Deferred Income Tax Liabilities | Reconciliation of net deferred income tax liabilities: 2018 2017 Balance, beginning of year $ (2,187 ) $ (2,453 ) Merger impact (Note 3) (776 ) – Income tax recovery recognized in net (loss) earnings from continuing operations 273 273 Income tax recovery recognized in net earnings from discontinued operations 17 – Income tax charge recognized in OCI (22 ) (43 ) Reclassified as held for sale – 36 Other 4 – Balance, end of year $ (2,691 ) $ (2,187 ) |
Summary of Amounts and Expiry Dates of Unused Tax Losses and Unused Tax Credits | Amounts and expiry dates of unused tax losses and unused tax credits as at December 31, 2018 were: Amount Expiry Date Unused operating losses $ 1,083 2020 – Indefinite Unused capital losses $ 795 Indefinite Unused investment tax credits $ 46 2019 – 2037 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Financial Impact of Discontinued Operations | As of December 31, 2018, the Company completed all required divestitures and retained no residual interests as outlined below: For the year ended December 31, 2018 Proceeds 1 Gain (Loss) on Gain (Loss) on Taxes AOCI Net Earnings and Retained Earnings Shares in SQM $ 5,126 $ 4,278 $ 3,366 $ – $ 3,366 Shares in ICL 685 (19 ) (19 ) (19 ) – Shares in APC 501 121 126 – 126 Conda Phosphate operations 98 – – – – Total Sale $ 6,410 $ 4,380 $ 3,473 $ (19 ) $ 3,492 1 Proceeds are net of commissions. |
Summary of Assets and Liabilities Held for Sale | Assets and liabilities held for sale as at December 31, 2017 were comprised of: 2017 ASSETS Investments in SQM and APC $ 1,146 Investment in ICL 708 Current tax asset 4 Assets held for sale $ 1,858 LIABILITIES Payables and accrued charges $ – Deferred income tax liabilities 36 Liabilities on assets held for sale $ 36 |
Summary of Net Earnings and Cash Flows from Discontinued Operations | Net earnings from discontinued operations for the years ended December 31 were as follows: 2018 2017 1 Gain on disposal of investments in SQM and APC $ 4,399 $ – Dividend income of SQM, APC and ICL 2 156 24 Share in earnings of SQM and APC 2 – 151 Income tax expense 3 (951 ) (2 ) Net earnings from discontinued operations $ 3,604 $ 173 1 Share of earnings, dividend income and income tax recovery pertaining to these investments were reclassified from loss before income taxes and income tax recovery to net earnings from discontinued operations on the consolidated statements of earnings. 2 The Company’s investments in SQM and APC were classified as discontinued operations in the later part of 2017 and, as a result, equity accounting in respect of these investments ceased. 3 For 2018, income tax (expense) recovery is comprised of $(912) relating to the disposals of SQM shares, including the repatriation of the net proceeds, and $(39) relating to earnings from discontinued operations ($(18) for the planned repatriation of the remaining excess cash available in Chile, $(26) for the repatriation of dividend income received from SQM and $5 relating to APC). Cash flows from discontinued operations for the year ended December 31 were as follows: 2018 2017 Cash provided by operating activities Dividends from discontinued operations $ 156 $ 176 Income tax related to the disposal of discontinued operations (26 ) – Dividends from discontinued operations, net of tax $ 130 $ 176 Cash provided by investing activities Proceeds from disposal of discontinued operations 1 $ 6,371 $ – Income tax related to the disposal of discontinued operations (977 ) – Proceeds from disposal of discontinued operations, net of tax $ 5,394 $ – 1 Excludes a receivable of $39 to be collected in 2019. |
Net Earnings per Share (Tables)
Net Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Weighted Average Number of Shares Reconciliation from Common to Diluted common | 2018 1 2017 WEIGHTED AVERAGE NUMBER OF COMMON SHARES 624,900,000 840,079,000 Dilutive effect of stock options 2 – 3 199,000 Dilutive effect of share-settled performance share units (“PSUs”) 4 – 3 38,000 Weighted average number of diluted common shares 624,900,000 840,316,000 1 The number of shares, stock options and share-settled PSUs reflect the Merger. Refer to Note 3 for details. 2 Diluted effect of stock options assumes exercise of all stock options with exercise prices at or below the average market price for the year would increase the denominator, and the denominator would be decreased by the number of shares that the Company could have repurchased if it had assumed proceeds from the exercise of stock options to repurchase them on the open market at the average share price for the year. 3 The diluted weighted average share calculations excluded an additional 658,000 stock options and 137,000 equity-settled PSUs due to their anti-dilutive 4 Diluted effect of PSUs assumes the denominator would be increased by the total of the additional share-settled PSUs that could be issued if vesting criteria are achieved. |
Summary of Options Excluded from Calculation of Diluted Net Earnings per Share | Options excluded from the calculation of diluted net earnings per share due to the option exercise prices being greater than the average market price of common shares were as follows: 2018 2017 Number of options excluded 5,721,656 12,304,351 Performance option plan years fully excluded 2009-2015 2008-2015, 2017 Stock option plan years fully excluded 2015, 2018 – |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Cash Provided by Operating Activities | Highly liquid investments with a maturity of three months or less from the date of purchase are considered to be cash equivalents. Supporting Information For the years ended December 31 2018 2017 (Note 33 ) RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES Net earnings $ 3,573 $ 327 Adjustments to reconcile net earnings to cash provided by operating activities Gain on sale of investments in SQM and APC (4,399 ) – Income tax related to the sale of the investment in SQM 977 – Depreciation and amortization 1,592 692 Impairment of property, plant and equipment (Note 16) 1,809 305 Share-based compensation (Note 29) 116 11 Recovery of deferred income tax (290 ) (273 ) Other long-term liabilities and miscellaneous (188 ) 91 Subtotal of adjustments (383 ) 826 CHANGES IN NON-CASH OPERATING WORKING CAPITAL Receivables (153 ) 47 Inventories (887 ) (10 ) Prepaid expenses and other current assets 561 (13 ) Payables and accrued charges (659 ) 48 Subtotal of changes in non-cash (1,138 ) 72 CASH PROVIDED BY OPERATING ACTIVITIES $ 2,052 $ 1,225 SUPPLEMENTAL CASH FLOWS DISCLOSURES Interest paid $ 507 $ 198 Income taxes paid $ 1,155 $ 83 |
Summary of Changes in Liabilities Arising From Financing Activities | The following is a summary of changes in liabilities arising from financing activities: Short-Term Debt and Current Portion of Long-Term Debt 1 Long-Term Debt Total Balance – December 31, 2017 $ 730 $ 3,711 $ 4,441 Debt acquired in Merger (Note 3) 878 4,930 5,808 Cash flows 1 (927 ) (12 ) (939 ) Reclassifications 1,023 (1,023 ) – Foreign currency translation and other non-cash changes (72 ) (15 ) (87 ) Balance – December 31, 2018 $ 1,632 $ 7,591 $ 9,223 Balance – December 31, 2016 $ 884 $ 3,707 $ 4,591 Cash flows 1 (159 ) (1 ) (160 ) Non-cash 5 5 10 Balance – December 31, 2017 $ 730 $ 3,711 $ 4,441 1 Cash inflows and cash outflows arising from short-term debt transactions are presented on a net basis. |
Financial Instruments and Rel_2
Financial Instruments and Related Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Maximum Exposure to Credit Risk | Maximum exposure to credit risk as at December 31: 2018 2017 Cash and cash equivalents $ 2,314 $ 116 Receivables 1 3,094 465 Other current assets – derivatives 5 7 Other non-current – 3 $ 5,413 $ 591 1 Excluding income tax receivable. |
Summary of Credit Risk Management Through Policies | Credit risk is managed through policies applicable to the following assets: Acceptable Minimum Counterparty Credit Ratings Exposure Thresholds by Counterparty Daily Counterparty Settlement Based on Prescribed Credit Thresholds Counterparties to Contracts are Investment-Grade Quality Cash and Cash Equivalents X X Natural Gas Derivatives X X X Foreign Currency Derivatives X |
Summary of Available Credit Facilities | The table below outlines the Company’s available credit facilities as at December 31, 2018. Total Amount Amount Outstanding and Committed Amount Available Unsecured revolving term credit facility $ 4,500 $ 391 $ 4,109 Uncommitted revolving demand facility 500 – 500 Accounts receivable securitization program 500 – 500 Other credit facilities 520 238 282 |
Summary of Maturity Analysis of Financial Liabilities and Gross Settled Derivative Contracts | The following maturity analysis of the Company’s financial liabilities and gross settled derivative contracts (for which the cash flows are settled simultaneously) is based on the expected undiscounted contractual cash flows from the date of the consolidated balance sheets to the contractual maturity date. 2018 Carrying Amount Contractual Cash Flows Within 1 1 to 3 Years 3 to 5 Years Over 5 Years Short-term debt 1 $ 629 $ 629 $ 629 $ – $ – $ – Payables and accrued charges 2 4,695 4,695 4,695 – – – Current portion of long-term debt and Long-term debt 1 8,594 12,818 1,362 1,121 1,583 8,752 Derivatives 71 72 44 19 9 – $ 13,989 $ 18,214 $ 6,730 $ 1,140 $ 1,592 $ 8,752 1 Contractual cash flows include contractual interest payments related to debt obligations. Interest rates on variable rate debt are based on prevailing rates as at December 31, 2018. Disclosures regarding offsetting of certain debt obligations are provided below. 2 Excludes non-financial |
Summary of Fair Value Hierarchy for Financial Assets and Financial Liabilities | The following table presents the Company’s fair value hierarchy for financial assets and financial liabilities carried at fair value on a recurring basis or measured at amortized costs: Fair Value Measurements at Reporting 2018 Carrying Amount of Quoted Prices in for Identical Assets 1 Significant Other Inputs (Level 2) 1 Financial instruments measured at fair value on a recurring basis Derivative instrument assets $ 5 $ – $ 5 Other current financial assets – marketable securities 2 97 12 85 Investments at FVTOCI 3 186 186 – Derivative instrument liabilities (71 ) – (71 ) Financial instruments measured at amortized cost Cash and cash equivalents $ 2,314 $ – $ 2,314 Current portion of long-term debt Senior notes and debentures 4 (995 ) – (1,009 ) Fixed and floating rate debt (8 ) – (8 ) Long-term debt Senior notes and debentures 4 (7,569 ) (1,004 ) (6,177 ) Fixed and floating rate debt (22 ) – (22 ) 2017 Derivative instrument assets Natural gas derivatives $ 9 $ – $ 9 Investments at FVTOCI 3 970 970 – Derivative instrument liabilities Natural gas derivatives (64 ) – (64 ) Long-term debt Senior notes 4 (3,707 ) (490 ) (3,555 ) 1 During the period ended December 31, 2018, there were no transfers between Level 1 and Level 2 for financial instruments measured at fair value. The Company’s policy is to recognize transfers at the end of the reporting period. 2 Marketable securities consist of equity and fixed income securities. The Company determines the fair value of equity securities based on the bid price of identical instruments in active markets. The Company values fixed income securities using quoted prices of instruments with similar terms and credit risk. 3 Investments at FVTOCI are comprised of shares in Sinofert and other (Note 21) (2017 – ICL, Sinofert and other). The Company’s investment in ICL was sold during 2018 (Note 10). 4 Carrying amount of liability includes net unamortized debt issue costs. |
Summary of Recognized Financial Instruments that are Offset, or Subject to Enforceable Master Netting Arrangements | 2018 2017 Financial assets (liabilities) Gross Offset Net Presented Gross Offset Net Presented Derivative instrument assets Natural gas derivatives 1 $ 31 $ (27 ) $ 4 $ 11 $ (2 ) $ 9 Derivative instrument liabilities Natural gas derivatives 2 (92 ) 26 (66 ) (74 ) 10 (64 ) Other long-term debt instruments 3 (150 ) 150 – (150 ) 150 – $ (211 ) $ 149 $ (62 ) $ (213 ) $ 158 $ (55 ) 1 Cash margin deposits of $NIL (2017 – $(1)) were held related to legally enforceable master netting arrangements. 2 Cash margin deposits of $18 (2017 – $38) were placed with counterparties related to legally enforceable master netting arrangements. 3 Back-to-back non-payment Non-compliance |
Summary of Natural Gas Derivatives Outstanding | Natural gas derivatives outstanding: 2018 2017 Notional 1 Maturities Average Price 2 Fair Value Notional 1 Maturities Average 2 Fair Value Natural gas NYMEX swaps 22 2019 – 2022 $ 4.26 $ (35 ) 27 2018 – 2022 $ 4.89 $ (54 ) AECO swaps 3 26 2019 $ 1.92 $ (25 ) – – – $ – 1 In millions of British thermal units (“MMBtu”). 2 US dollars per MMBtu. 3 AECO swaps are only included in 2018 as a result of the Merger as described in Note 3. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Receivables | Supporting Information December 31, 2018 December 31, 2017 Trade accounts – third parties $ 2,628 $ 314 – Canpotex (Note 30) 208 82 Less provisions for impairment of trade accounts receivable (90 ) (6 ) 2,746 390 Rebates 169 – Income taxes (Note 9) 248 24 Other non-trade 179 75 $ 3,342 $ 489 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Inventories | Supporting Information December 31, December 31, Purchased for resale $ 3,545 $ – Finished products 501 260 Intermediate products 218 202 Raw materials 275 62 Materials and supplies 378 264 $ 4,917 $ 788 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Estimated Useful Lives | The following estimated useful lives have been applied to the majority of property, plant and equipment assets as at December 31, 2018: Useful Life Range (years) Weighted Average Useful Life (years) 1 Land improvements 5 to 80 35 Buildings and improvements 2 to 60 38 Machinery and equipment 1 to 80 25 1 Weighted by carrying amount as at December 31, 2018. |
Summary of Reconciliation of Changes in Property Plant and Equipment | Accounting policies, estimates and judgments related to impairment of long-lived assets are described in Note 32. Supporting Information Land and Improvements Buildings and Improvements Machinery and Equipment Mine Assets Under Construction Total Carrying amount – December 31, 2017 $ 612 $ 4,184 $ 6,744 $ 979 $ 452 $ 12,971 Merger impact (Note 3) 396 2,695 4,042 – 326 7,459 Other acquisitions 10 31 66 – – 107 Additions 41 61 327 42 975 1,446 Disposals (3 ) (14 ) (30 ) – – (47 ) Transfers 10 30 538 18 (596 ) – Foreign currency translation (9 ) (16 ) (15 ) – (7 ) (47 ) Other adjustments – 44 (6 ) 10 (7 ) 41 Depreciation (33 ) (195 ) (1,032 ) (65 ) – (1,325 ) Impairment (6 ) (776 ) (752 ) (275 ) – (1,809 ) Carrying amount – December 31, 2018 $ 1,018 $ 6,044 $ 9,882 $ 709 $ 1,143 $ 18,796 Balance as at December 31, 2018 comprised of: Cost $ 1,294 $ 7,617 $ 16,806 $ 1,954 $ 1,143 $ 28,814 Accumulated depreciation (276 ) (1,573 ) (6,924 ) (1,245 ) – (10,018 ) Carrying amount $ 1,018 $ 6,044 $ 9,882 $ 709 $ 1,143 $ 18,796 Carrying amount – December 31, 2016 $ 618 $ 4,212 $ 6,859 $ 1,027 $ 602 $ 13,318 Additions – – 9 88 528 625 Transfers 63 71 521 (21 ) (634 ) – Other adjustments – – 5 15 – 20 Depreciation (19 ) (83 ) (487 ) (98 ) – (687 ) Impairment (50 ) (16 ) (163 ) (32 ) (44 ) (305 ) Carrying amount – December 31, 2017 $ 612 $ 4,184 $ 6,744 $ 979 $ 452 $ 12,971 Balance as at December 31, 2017 comprised of: Cost $ 868 $ 4,837 $ 12,000 $ 1,985 $ 452 $ 20,142 Accumulated depreciation (256 ) (653 ) (5,256 ) (1,006 ) – (7,171 ) Carrying amount $ 612 $ 4,184 $ 6,744 $ 979 $ 452 $ 12,971 |
Summary of Depreciation of Property Plant and Equipment | Depreciation of property, plant and equipment was included in the following: December 31, December 31, Freight, transportation and distribution $ 15 $ – Cost of goods sold 1,016 668 Selling expenses 259 – General and administrative expenses 35 – 1,325 668 Depreciation recorded in inventory 46 19 $ 1,371 $ 687 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Estimated Useful Lives to Finite-lived Intangible Assets | The following estimated useful lives have been applied to finite-lived intangible assets as at December 31, 2018. Useful Life Range Customer relationships 6 to 15 Technology 3 to 7 Trade names 1 10 to 20 Other 1 to 30 1 Certain trade names have indefinite useful lives as there are no regulatory, legal, contractual, cooperative, economic or other factors that limit their useful lives. |
Summary of Reconciliation of Intangible Assets | Following is a reconciliation of intangible assets: Goodwill Customer 2 Technology Trade Other Total Other Carrying amount – December 31, 2017 $ 97 $ – $ – $ – $ 69 $ 69 Merger impact (Note 3) 11,185 1,708 44 122 474 2,348 Other acquisitions (Note 3) 197 1 – – 7 8 Additions – – 79 – 19 98 Disposals – – – – (27 ) (27 ) Foreign currency translation (48 ) (20 ) 1 (4 ) (6 ) (29 ) Amortization 1 – (135 ) (7 ) (28 ) (87 ) (257 ) Carrying amount – December 31, 2018 $ 11,431 $ 1,554 $ 117 $ 90 $ 449 $ 2,210 Balance as at December 31, 2018 Cost $ 11,438 $ 1,691 $ 124 $ 118 $ 586 $ 2,519 Accumulated amortization (7 ) (137 ) (7 ) (28 ) (137 ) (309 ) Carrying amount $ 11,431 $ 1,554 $ 117 $ 90 $ 449 $ 2,210 Carrying amount – December 31, 2016 $ 97 $ – $ – $ – $ 83 $ 83 Additions – – – – 1 1 Amortization – – – – (15 ) (15 ) Carrying amount – December 31, 2017 $ 97 $ – $ – $ – $ 69 $ 69 Balance as at December 31, 2017 Cost $ 104 $ – $ – $ – $ 123 $ 123 Accumulated amortization (7 ) – – – (54 ) (54 ) Carrying amount $ 97 $ – $ – $ – $ 69 $ 69 1 Amortization of $225 was included in selling expenses during the year ended December 31, 2018 (2017 – $NIL). 2 The remaining amortization period of customer relationships at December 31, 2018, was approximately 8 years. |
Summary of Goodwill by Groups of Cash Generating Unit | Goodwill by groups of CGUs as at December 31 is as follows: 2018 2017 Retail $ 6,882 $ – Potash 154 – Nitrogen 4,097 97 Phosphate and Sulfate 298 – $ 11,431 $ 97 |
Summary of Terminal Growth Rate and Curresponding Breakeven Discount Rate | For each group of CGUs, terminal growth rates used and corresponding breakeven discount rates per annum that equate the recoverable amount to the carrying amount are as follows: Terminal Breakeven Retail 2.5 % 8.3 % Potash 2.5 % 13.1 % Nitrogen 2.0 % 12.8 % Phosphate and Sulfate 2.0 % 11.2 % |
Summary of Key Assumptions, Change In Retail Segment Recoverable Amount | Percentage Change in Recoverable Discount rate +0.1 % $ (365 ) -0.1 % 381 Terminal growth rate +0.1 % $ 320 -0.1 % (307 ) Forecasted EBITDA over forecast period +5.0 % $ 1,488 -5.0 % (1,477 ) |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Other Assets | Other assets as at December 31 were comprised of: 2018 2017 Deferred income tax assets (Note 9) $ 216 $ 18 Ammonia catalysts – net of accumulated amortization of $79 (2017 – $61) 81 42 Long-term income tax receivable (Note 9) 36 64 Accrued pension benefit asset (Note 28) 27 24 Other – net of accumulated amortization of $38 (2017 – $35) 165 98 $ 525 $ 246 |
Payables and Accrued Charges (T
Payables and Accrued Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Payables and Accrued Charges | Payables and accrued charges as at December 31 were comprised of: 2018 2017 Trade accounts $ 3,053 $ 255 Customer prepayments 1,625 – Dividends 526 84 Accrued compensation 425 98 Current portion of asset retirement obligations and accrued environmental costs (Note 20) 156 72 Accrued interest 105 33 Current portion of share-based compensation (Note 29) 87 13 Current portion of derivatives 45 29 Income taxes (Note 9) 47 16 Current portion of pension and other post-retirement benefits (Note 28) 13 35 Other payables and other accrued charges 621 201 $ 6,703 $ 836 |
Asset Retirement Obligations _2
Asset Retirement Obligations and Accrued Environmental Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Pre-Tax Risk-Free Discount Rate and Expected Cash Flow Payments for Asset Retirement Obligations and Accrued Environmental Costs | The pre-tax Asset Retirement Obligations Accrued Environmental Costs Risk-Free Rate (%) 1 Cash Flow Payments 2 Risk-Free Rate (%) 1 Cash Flow Payments (years) Potash sites 3.64 – 5.00 52 – 430 n/a n/a Phosphate sites 1.60 – 5.43 1 – 483 2.08 – 4.27 1 – 30 Other 1.22 – 6.50 1 – 49 2.05 – 4.27 1 – 30 1 Risk-free discount rates reflect current market assessments of the time value of money and the risks specific to the timing and jurisdiction of the obligation. 2 Time frame in which payments are expected to principally occur from December 31, 2018, with the majority of phosphate payments taking place over the next 80 years. Changes in years can result from changes to the mine life and/or changes in the rate of tailing volumes. |
Summary of Sensitivity of Asset Retirement Obligations and Accrued Environmental Costs to Changes in Discount Rate on Recorded Liability | Sensitivity of asset retirement obligations and accrued environmental costs to changes in the discount rate on the recorded liability as at December 31, 2018 was as follows: Discount Rate Undiscounted Discounted Cash Flows +0.5% -0.5% Asset retirement obligations $ (88) $ 88 Potash sites $ 675 1 $ 130 Phosphate sites 1,636 1,125 Other 101 40 Accrued environmental costs (12) 15 Phosphate sites 321 246 Other 318 288 1 Represents total undiscounted cash flows in the first year of decommissioning for operating sites and cash flows for all years for sites that were or would be permanently shut down. For operating sites, excludes subsequent years of tailings dissolution, fine tails capping, tailings management area reclamation, post reclamation activities and monitoring, and final decommissioning, which are estimated to take an additional 90-375 years. |
Summary of Reconciliation of Asset Retirement, Environmental Restoration Obligations | Following is a reconciliation of asset retirement and environmental restoration obligations: Asset Retirement Obligations Accrued Environmental Costs Total Balance – December 31, 2017 $ 702 $ 21 $ 723 Merger impact 1 608 525 1,133 Recorded in earnings 64 12 76 Capitalized to property, plant and equipment 9 – 9 Settled during the year (57 ) (12 ) (69 ) Foreign currency translation (31 ) (12 ) (43 ) Balance – December 31, 2018 $ 1,295 $ 534 $ 1,829 Balance as at December 31, 2018 comprised of: Current liabilities Payables and accrued charges (Note 19) $ 122 $ 34 $ 156 Non-current Asset retirement obligations and accrued environmental costs $ 1,173 $ 500 $ 1,673 1 Asset retirement obligations of $201 and accrued environmental costs of $376 represent contingent liabilities recognized as a result of the Merger. Refer to Note 3. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Equity-Accounted Investees and investments at FVTOCI | Supporting Information Equity-accounted investees and investments at FVTOCI as at December 31 were comprised of: Proportion of Ownership Interest and Voting Rights Held Carrying Amount Name Principal Activity Principal Place of Business and Incorporation 2018 2017 2018 2017 EQUITY-ACCOUNTED MOPCO 1 Nitrogen Producer Egypt 26 % – % 3 $ 236 $ – Profertil Nitrogen Producer Argentina 50 % – % 3 192 – Canpotex Marketing & Logistics Canada 50 % 2 33 % – – Agrichem 4 Fertilizer Producer & Marketer Brazil 80 % – % 103 – Other associates and joint ventures 161 30 Total equity-accounted investees $ 692 $ 30 INVESTMENTS Sinofert 5 Fertilizer Supplier & Distributor China/Bermuda 22 % 22 % $ 180 $ 258 Other – % – % 6 4 Total investments at FVTOCI $ 186 $ 262 1 The Company has representation on the MOPCO Board of Directors providing significant influence over MOPCO. The Company recorded its share of MOPCO’s earnings on a one-quarter 2 Upon closing of the Merger on January 1, 2018 as described in Note 3, the classification of the investment changed from an associate to a joint venture. 3 Investments in MOPCO and Profertil were acquired as part of the Merger as described in Note 3. 4 As contractually agreed, the Company has joint control with the other shareholder of Agrichem. Subsequent to 2018, the Company acquired the remaining interest in Agrichem making it a wholly owned subsidiary that will be consolidated. 5 The Company’s 22 percent ownership of Sinofert does not constitute significant influence as the Company does not have any representation on the Board of Directors of Sinofert. The Company elected for this investment to be accounted for as FVTOCI. |
Financial information of the company's proportionate interest in equity-accounted investees | Additional financial information of the Company’s proportionate interest in equity-accounted investees for the years ended December 31 was as follows: Associates Joint Ventures 2018 2017 2018 2017 Earnings from continuing operations and net earnings $ 24 $ – $ 16 $ 9 Other comprehensive income – – – – Total comprehensive income $ 24 $ – $ 16 $ 9 |
Short-Term Debt (Tables)
Short-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Short-Term Debt | Short-term debt as at December 31 was comprised of: 2018 2017 Commercial paper $ 391 $ 730 Other credit facilities 1 238 – $ 629 $ 730 1 Credit facilities are unsecured and consist of US dollar-denominated debt of $153, euro-denominated debt of $22 and debt of $63 in other currency denominations. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Long-Term Debt | Long-term debt as at December 31 was comprised of: Rate of Interest Maturity 2018 2017 Senior notes 1 Notes issued 2009 6.500% May 15, 2019 $ 500 $ 500 Notes issued 2009 4.875% March 30, 2020 500 500 Notes issued 2014 3.625% March 15, 2024 750 750 Notes issued 2015 3.000% April 1, 2025 500 500 Notes issued 2016 4.000% December 15, 2026 500 500 Notes issued 2006 5.875% December 1, 2036 500 500 Notes issued 2010 5.625% December 1, 2040 500 500 Debentures 1 Debentures issued 2008 6.750% January 15, 2019 500 – Debentures issued 2012 3.150% October 1, 2022 500 – Debentures issued 2013 3.500% June 1, 2023 500 – Debentures issued 2015 3.375% March 15, 2025 550 – Debentures issued 1997 7.800% February 1, 2027 125 – Debentures issued 2015 4.125% March 15, 2035 450 – Debentures issued 2006 7.125% May 23, 2036 300 – Debentures issued 2010 6.125% January 15, 2041 500 – Debentures issued 2013 4.900% June 1, 2043 500 – Debentures issued 2014 5.250% January 15, 2045 500 – Other 30 – 8,205 3,750 Add net unamortized fair value adjustments 2 444 – Less net unamortized debt issue costs (55 ) (43 ) 8,594 3,707 Less current maturities (1,008 ) – Less current portion of net unamortized fair value adjustments 2 (1 ) – Add current portion of net unamortized debt issue costs 6 4 (1,003 ) 4 $ 7,591 $ 3,711 1 Each series of senior notes and debentures is unsecured and has no sinking fund requirements prior to maturity. Each series is redeemable and has various provisions that allow redemption prior to maturity, at the Company’s option, at specified prices. 2 Associated with the Merger on January 1, 2018. |
Summary of Credit Facilitiy | Details of the Company’s credit facility was as follows: 2018 2017 Credit facility $4,500 – maturity April 10, 2023 1 $3,250 – maturity May 31, 2021 $250 – maturity May 31, 2020 Borrowings outstanding $ NIL $ NIL Commercial paper outstanding, backstopped by the credit facility (Note 22) $ 391 $ 730 1 Subject to extensions, at the request of Nutrien, which shall not exceed five years. |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Shares Issued | Issued Number of Common Shares (Pre-Merger) Number of Common Shares (Post-Merger) Consideration Balance – December 31, 2017 (Pre-Merger) 840,223,041 Conversion ratio 0.40 PotashCorp shares converted to Nutrien shares 336,089,216 $ 1,806 Agrium shares – December 31, 2017 (Pre-Merger) 138,165,765 Conversion ratio 2.23 Agrium shares converted to Nutrien shares 308,109,656 15,898 Fractional shares cancelled 1 (1,399 ) – Balance – January 1, 2018 (Post-Merger) 644,197,473 17,704 Issued under option plans and share-settled plans 670,201 34 Repurchased (36,332,197 ) (998 ) Balance – December 31, 2018 608,535,477 $ 16,740 1 No fractional shares of Nutrien were issued. Each PotashCorp shareholder and Agrium shareholder that would otherwise have been entitled to receive a fraction of a Nutrien share received, in lieu thereof, a cash amount, without interest, determined by reference to the volume weighted average trading price of Nutrien shares on the Toronto Stock Exchange on the first five trading days on which such shares traded on such exchange following January 2, 2018. |
Summary of Share Repurchases | The following table summarizes the Company’s share repurchases: 2018 Common shares repurchased for cancellation 36,332,197 Average price per share $ 50.97 Repurchase resulting in a reduction of: Share capital $ 998 Contributed surplus 1 23 Retained earnings 1 831 Total Cost $ 1,852 1 The excess of net cost over the average book value of the shares. |
Capital Management (Tables)
Capital Management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Schedule of Adjusted Net Debt, Adjusted Shareholders' Equity and Adjusted Capital | The calculation of adjusted net debt, adjusted shareholders’ equity and adjusted capital is set out in the following table: 2018 2017 Short-term debt $ 629 $ 730 Current portion of long-term debt 1,003 – Long-term debt 7,591 3,711 Total debt 9,223 4,441 Cash and cash equivalents (2,314 ) (116 ) Net debt 6,909 4,325 Unamortized fair value adjustments (444 ) – Adjusted net debt 6,465 4,325 Total shareholders’ equity 24,425 8,303 Accumulated other comprehensive (income) loss 291 (25 ) Adjusted shareholders’ equity 24,716 8,278 Adjusted capital $ 31,181 $ 12,603 |
Components of Ratios | The Company monitors the following ratios: 2018 2017 (Note 33) Ratios Adjusted net debt to adjusted EBITDA 1.64 4.28 Adjusted EBITDA to adjusted finance costs 8.15 4.75 Adjusted net debt to adjusted capital 20.7% 34.3% |
Summary of EBITDA, Adjusted EBITDA and Adjusted Finance Costs | Other components of ratios above are calculated as follows: 2018 2017 (Notes 33) Net (loss) earnings from continuing operations $ (31 ) $ 154 Finance costs 538 238 Income taxes (93 ) (183 ) Depreciation and amortization 1,592 692 EBITDA 2,006 901 Impairment of property, plant and equipment 1,809 – Merger and related costs 170 84 Share-based compensation 116 26 Defined Benefit Plans Curtailment Gain (157 ) – Adjusted EBITDA $ 3,944 $ 1,011 2018 2017 Finance costs $ 538 $ 238 Unwinding of discount on asset retirement obligations (51 ) (17 ) Borrowing costs capitalized to property, plant and equipment 12 11 Interest on net defined benefit pension and other post-retirement plan obligations (15 ) (19 ) Adjusted finance costs $ 484 $ 213 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Minimum Future Commitments Under Contractual Agreements | Minimum future commitments under these contractual arrangements were as follows at December 31, 2018: Operating Long-term Purchase Commitments Capital Commitments Other Commitments Total Within 1 year $ 216 $ 1,341 $ 1,364 $ 37 $ 114 $ 3,072 1 to 3 years 316 1,112 949 18 123 2,518 3 to 5 years 212 1,576 945 2 61 2,796 Over 5 years 343 8,689 138 – 20 9,190 Total $ 1,087 $ 12,718 $ 3,396 $ 57 $ 318 $ 17,576 |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Significant Assumptions Used to Determine Benefit Obligations and Expense | The significant assumptions used to determine the benefit obligations and expense for the Company’s significant plans as at and for the year ended December 31 were as follows: Pension Other 2018 2017 2018 2017 Assumptions used to determine the benefit obligations 1 Discount rate, % 4.22 3.65 4.17 3.65 Rate of increase in compensation levels, % 4.75 5.00 n/a n/a Medical cost trend rate – assumed, % n/a n/a 6.10 – 4.50 2 5.60 – 4.50 2 Medical cost trend rate – year reaches ultimate trend rate n/a n/a 2037 2037 Mortality assumptions 3 Life expectancy at 65 for a male member currently at age 65 20.6 20.7 20.4 20.0 Life expectancy at 65 for a female member currently at age 65 22.8 22.7 22.8 22.4 Average remaining service period of active employees (years) 9.7 9.0 5.1 12.2 Average duration of the defined benefit obligations 4 13.7 15.7 15.1 19.0 1 The current year’s expense is determined using the assumptions that existed at the end of the previous year. 2 The Company assumed a graded medical cost trend rate starting at 6.10 percent in 2018, moving to 4.50 percent by 2037 (2017 – starting at 5.60 percent, moving to 4.50 percent by 2037). 3 Based on actuarial advice in accordance with the latest available published tables, adjusted where appropriate to reflect future longevity improvements for each country. 4 Weighted average length of the underlying cash flows. n/a = not applicable |
Summary of Significant Assumptions, Change in Discount Rates has Greatest Potential Impact | Of the most significant assumptions, a change in discount rates has the greatest potential impact on the Company’s pension and other post-retirement benefit plans, with sensitivity to change as follows: 2018 2017 Change in Assumption Benefit Obligations Expense in Income Before Income Taxes Benefit Obligations Expense in Income Before Income Taxes As reported $ 1,797 $ (87 ) $ 1,831 $ 75 Discount rate 1.0 percentage point $ 271 24 326 20 1.0 percentage point # (218 ) (22 ) (251 ) (18 ) |
Summary of Movements in Pension and Other Post-Retirement Benefit Assets (Liabilities) | Movements in the pension and other post-retirement benefit assets (liabilities) Obligation Plan Assets Net Balance – December 31, 2017 $ (1,831 ) $ 1,380 $ (451 ) Merger impact 1 (347 ) 205 (142 ) Components of defined benefit expense recognized in earnings Current service cost for benefits earned during the year (67 ) – (67 ) Interest (expense) income (77 ) 62 (15 ) Past service cost, including curtailment gains and settlements 2 157 – 157 Foreign exchange rate changes and other 39 (27 ) 12 Subtotal of components of defined benefit expense recognized in earnings 52 35 87 Remeasurements of the net defined benefit liability recognized in OCI during the year Actuarial gain arising from: Changes in financial assumptions 210 – 210 Changes in demographic assumptions 11 – 11 Loss on plan assets (excluding amounts included in net interest) – (149 ) (149 ) Subtotal of remeasurements 221 (149 ) 72 Cash flows Contributions by plan participants (6 ) 6 – Employer contributions – 53 53 Benefits paid 114 (114 ) – Subtotal of cash flows 108 (55 ) 53 Balance – December 31, 2018 3 $ (1,797 ) $ 1,416 $ (381 ) Balance comprised of: Non-current Other assets (Note 18) $ 27 Current liabilities Payables and accrued charges (Note 19) $ (13) Non-current Pension and other post-retirement benefit liabilities $ (395) 1 The Company acquired Agrium’s pension and other post-retirement benefit obligations, representing the fair values at the acquisition date as described in Note 3. 2 In 2018, as part of the Company’s continuous assessment of its operations, participation in certain company defined benefit pension and other post-retirement benefit plans was suspended and/or discontinued effective January 1, 2020 based on age and years of service. As a result, the Company recognized a Merger-related Defined Benefit Plans Curtailment Gain of $157. 3 Obligations arising from funded and unfunded pension plans are $(1,466) and $(331), respectively. Other post-retirement benefit plans have no plan assets and are unfunded. Obligation Plan Assets Net Balance – December 31, 2016 $ (1,698 ) $ 1,246 $ (452 ) Components of defined benefit expense recognized in earnings (131 ) 56 (75 ) Remeasurements of the net defined benefit liability recognized in OCI during the year (57 ) 123 66 Cash flows 55 (45 ) 10 Balance – December 31, 2017 1 $ (1,831 ) $ 1,380 $ (451 ) Balance comprised of: Non-current Other assets (Note 18) $ 24 Current liabilities Payables and accrued charges (Note 19) $ (35 ) Non-current Pension and other post-retirement benefit liabilities $ (440 ) 1 Obligations arising from funded and unfunded pension plans are $(1,445) and $(386), respectively. Other post-retirement benefit plans have no plan assets and are unfunded. |
Summary of Fair Value of Plan Assets of the Defined Benefit Pension Plans, by Asset Category | The fair value of plan assets of the Company’s defined benefit pension plans, by asset category, was as follows as at December 31: 2018 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Other (Level 2 & 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other (Level 2 & 3) Total Cash and cash equivalents $ 6 $ 54 $ 60 $ 13 $ 33 $ 46 Equity securities and equity funds US 454 65 519 565 2 567 International 175 65 240 151 29 180 Debt securities 1 187 329 516 190 244 434 International balanced fund – 97 97 – 173 173 Other (25 ) 9 (16 ) (20 ) – (20 ) Total pension plan assets $ 797 $ 619 $ 1,416 $ $ 481 $ 1,380 1 Debt securities included US securities of 52 percent (2017 – 62 percent), International securities of 31 percent (2017 – 18 percent) and Mortgage-backed securities of 17 percent (2017 – 20 percent). |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Stock Awards Available for Grant | As at December 31, 2018, the Company had the following awards available to be granted under the 2018 stock option plan, the 2018 PSU/RSU plan and the 2018 DSU plan: Plan Features Form of Payment Eligibility Granted Vesting Period Maximum Term Settlement Stock Options Officers and eligible employees Annually 25% per year over 10 years Shares PSUs 1 Officers and other eligible employees Annually On third anniversary n/a Cash RSUs 2 Eligible employees Annually On third anniversary n/a Cash DSUs Non-executive At the discretion of the Board Fully vest upon n/a In cash on director’s departure from 1 PSUs granted vest based on total shareholder return over a three-year performance cycle, compared to average total shareholder return of a peer group of companies over the same period. The value of each PSU granted is based on the average closing price of the Company’s common shares on the NYSE during the last month of the three-year cycle. 2 RSUs granted are not subject to performance conditions and vest at the end of the three-year period. n/a = not applicable |
Summary of Stock Awards Outstanding | In addition, as at December 31, 2018, the Company had the following awards outstanding under one or more assumed legacy plans of PotashCorp and/or Agrium under which no new awards will be granted: Plan Features Form of Payment Vesting Period Maximum Term Settlement Stock Options 25% per year over four years 1 On third anniversary of grant date 2 10 years Shares PSUs 3,4 On third anniversary of grant date n/a Cash /Shares RSUs 5 On third anniversary of grant date n/a Cash SARs 6 25% per year over four years 10 years Cash 1 Under the assumed legacy Agrium stock option plan. 2 Under the assumed legacy PotashCorp long-term incentive plan and performance option plans. 3 Under the assumed legacy PotashCorp long-term incentive plan, PSUs granted in 2017 and 2016 were comprised of three tranches, with each tranche vesting based on achievement of a combination of performance metrics over separate performance periods ranging from one to three years and such PSUs will be settled in shares for grantees who are subject to the Company’s share ownership guidelines and in cash for all other grantees. 4 Under the assumed legacy Agrium long-term incentive plan, PSUs granted in 2017 and 2016 vest over a three-year performance cycle based on the achievement of performance metrics and will be settled in cash. 5 Under the assumed legacy Agrium long-term incentive plan, RSUs granted in 2017 and 2016 are not subject to performance conditions, vest at the end of the three-year period and will be settled in cash. 6 Under the assumed legacy Agrium SARs plan, effective January 1, 2015, tandem stock appreciation rights (“TSARs”) were no longer issued to eligible officers and employees. TSARs granted in Canada prior to January 1, 2015 have similar terms and vesting conditions to SARs and also provide the holder with the ability to choose between (a) receiving the price of the Company’s shares on the date of exercise in excess of the exercise price of the right and (b) receiving common shares by paying the exercise price of the right. The Company’s past experience and future expectation is that substantially all option holders will elect to exercise their options as a SAR, surrendering their options and receiving settlement in cash. TSARs are included with the SARs disclosure. n/a = not applicable |
Summary of Weighted Average Assumptions in Stock Options | The weighted average assumptions for both legacy companies by year of grant that impacted current year results are as follows: Year of Grant Assumptions Based On 2018 2017 1 Exercise price per option Quoted market closing price 2 $ 44.50 $ 46.47 Expected annual dividend yield Annualized dividend rate 3 3.58% 2.93% Expected volatility Historical volatility 4 29% 28% Risk-free interest rate Zero-coupon government issues 5 2.79% 1.95% Average expected life of options Historical experience 7.5 years 6.2 years 1 The weighted average assumptions used by both legacy companies were presented due to the multi-year impact on share-based compensation expense. 2 Of common shares on the last trading day immediately preceding the date of the grant. 3 As of the date of grant. 4 Of the Company’s stock over a period commensurate with the expected life of the option. 5 Implied yield available on equivalent remaining term at the time of the grant. |
Summary of Stock Option Plans | A summary of the status of the stock option plans as at December 31, 2018 and 2017 and changes during the years ending on those dates is as follows: Number of Shares Subject to Option Weighted Average Exercise Price 2018 (Pre-Merger) 2018 (Post-Merger) 2017 2018 (Pre-Merger) 2018 (Post-Merger) 2017 PotashCorp outstanding, beginning of year 17,170,654 19,470,014 $ 32.24 $ 31.15 PotashCorp shares converted to Nutrien shares (Conversion ratio 0.40) 6,868,262 $ 80.60 Agrium outstanding shares—beginning of year 1,380,868 100.08 Agrium shares converted to Nutrien shares (Conversion ratio 2.23) 3,079,321 44.88 Balance – beginning of year 9,947,583 19,470,014 $ 69.54 $ 31.15 Granted 1,875,162 1,482,829 44.50 18.71 Exercised (647,331 ) (22,100 ) 42.86 17.78 Forfeited or cancelled (1,793,077 ) (1,221,314 ) 82.84 34.55 Expired (338,100 ) (2,538,775 ) 154.94 20.06 Outstanding, end of year 9,044,237 17,170,654 $ 58.41 $ 32.24 |
Summary of Stock Options Outstanding Range of Exercise Price | The following table summarizes information about stock options outstanding as at December 31, 2018 with expiry dates ranging from May 2019 to February 2028: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted Remaining Weighted Exercise Number Weighted Exercise $ 37.00 to $ 41.00 2,064,621 7 $ 38.59 966,606 $ 38.22 $ 44.00 to $ 52.00 3,996,110 8 46.88 1,542,489 48.75 $ 64.00 to $ 75.00 834,091 4 71.57 834,091 71.57 $ 80.00 to $ 88.00 959,275 4 82.30 959,275 82.30 $ 91.00 to $110.00 1,040,300 4 99.04 1,040,300 99.04 $130.00 to $131.00 149,840 2 130.78 149,840 130.78 9,044,237 7 $ 58.41 5,492,601 $ 68.01 |
Summary of Stock Awards Granted | For all plans, share-based awards granted in 2018 and outstanding as at December 31, 2018 were: Units Granted Units Outstanding Stock Options 1,875,162 9,044,237 PSUs 619,799 1,752,281 RSUs 437,474 889,005 DSUs 61,062 456,848 SARs – 2,388,402 |
Compensation Expense for all Employee and Director Share-based Compensation Plans | Compensation expense for all employee and director share-based compensation plans was as follows: 2018 2017 Stock Options $ 23 $ 7 PSUs 83 16 RSUs 14 – DSUs – 3 SARs (4 ) – $ 116 $ 26 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Compensation to Key Management Personnel | Compensation to key management personnel was comprised of: 2018 2017 Salaries and other short-term benefits $ 19 $ 14 Share-based compensation 53 9 Post-employment benefits 3 3 Termination benefits 1 23 – $ 98 $ 26 1 Primarily includes costs incurred with respect to departure of five key management personnel in 2018 following completion of the Merger. |
Comparative Figures (Tables)
Comparative Figures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Reclassification of Financial Statements | Consolidated Statement of Earnings For the Year Ended December 31, 2017 Previously Reclassification Reported after Cost of goods sold $ (3,335 ) $ 19 $ (3,316 ) Selling and administrative expenses (214 ) 214 – Selling expenses – (29 ) (29 ) General and administrative expenses – (185 ) (185 ) Provincial mining and other taxes (151 ) 5 (146 ) Merger and related costs (84 ) 84 – Other expenses (17 ) (108 ) (125 ) $ (3,801 ) $ – $ (3,801 ) Consolidated Statement of Comprehensive Income For the Year Ended December 31, 2017 Previously Reported Reclassification Amounts Reported after Other $ 3 $ 17 $ 20 Cash flow hedges Net fair value loss during the period (17 ) 17 – Reclassification of net gain to earnings 34 (34 ) – $ 20 $ – $ 20 Consolidated Statement of Cash Flows For the Year Ended December 31, 2017 Previously Reported Reclassification Amounts Reported after Pension and other post-retirement benefits $ 64 $ (64 ) $ – Net undistributed earnings of equity-accounted investees (1 ) 1 – Asset retirement obligations and accrued environmental costs 7 (7 ) – Other long-term liabilities and miscellaneous 21 70 91 $ 91 $ – $ 91 Consolidated Statements of Shareholders’ Equity As at December 31, 2017 Previously Reported Reclassification Amounts Reported after Other $ (5 ) $ (41 ) $ (46 ) Net loss on derivatives designated as cash flow hedges (43 ) 43 – Loss on currency translation of foreign operations – (2 ) (2 ) $ (48 ) $ – $ (48 ) As at December 31, 2016 Previously Reported Reclassification Amounts Reported after Other $ (8 ) $ (58 ) $ (66 ) Net loss on derivatives designated as cash flow hedges (60 ) 60 – Loss on currency translation of foreign operations – (2 ) (2 ) $ (68 ) $ – $ (68 ) Consolidated Balance Sheet As at December 31, 2017 Previously Reclassification Reported after Intangible assets $ 166 $ (166 ) $ – Goodwill – 97 97 Other intangible assets – 69 69 $ 166 $ – $ 166 Investments in equity-accounted investees $ 30 $ (30 ) $ – Available-for-sale 262 (262 ) – Investments – 292 292 $ 292 $ – $ 292 Short-term debt and current portion of long-term debt $ 730 $ (730 ) $ – Short-term debt – 730 730 $ 730 $ – $ 730 Payables and accrued charges $ 807 $ 29 $ 836 Current portion of derivative instrument liabilities 29 (29 ) – $ 836 $ – $ 836 Other non-current $ 51 $ 35 $ 86 Derivative instrument liabilities 35 (35 ) – $ 86 $ – $ 86 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018VesselNutrientPlantRailcarVehicleOperationFacility | Dec. 31, 2017 | |
Disclosure of description of business [line items] | ||
Number of essential nutrients | Nutrient | 3 | |
Number of leased vessels | Vessel | 4 | |
Number of multi-purpose vessels owned | Vessel | 1 | |
Sinofert [member] | ||
Disclosure of description of business [line items] | ||
Percentage of investment | 22.00% | 22.00% |
North America [member] | ||
Disclosure of description of business [line items] | ||
Number of leased or owned terminals | 400 | |
Number of railcars | Railcar | 15,000 | |
Number of retail vehicles | Vehicle | 31,000 | |
Brazil [member] | ||
Disclosure of description of business [line items] | ||
Number of leased dry bulk fertilizer port terminal | 1 | |
Retail [member] | Bottom of range [member] | ||
Disclosure of description of business [line items] | ||
Number of operations | Facility | 1,700 | |
Potash [member] | Province of Saskatchewan [member] | ||
Disclosure of description of business [line items] | ||
Number of operations | Operation | 6 | |
Nitrogen [member] | North America [member] | Production facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 8 | |
Nitrogen [member] | North America [member] | Upgrade facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 7 | |
Nitrogen [member] | Alberta [member] | North America [member] | Production facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 4 | |
Nitrogen [member] | Alberta [member] | North America [member] | Upgrade facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 3 | |
Nitrogen [member] | Texas [member] | North America [member] | Production facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Nitrogen [member] | Georgia [member] | North America [member] | Production facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Nitrogen [member] | Georgia [member] | North America [member] | Upgrade facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Nitrogen [member] | Louisiana [member] | North America [member] | Production facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Nitrogen [member] | Ohio [member] | North America [member] | Production facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Nitrogen [member] | Trinidad [member] | ||
Disclosure of description of business [line items] | ||
Number of operations | Operation | 1 | |
Nitrogen [member] | Washington [member] | North America [member] | Upgrade facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Nitrogen [member] | Missouri [member] | North America [member] | Upgrade facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Nitrogen [member] | Alabama [member] | North America [member] | Upgrade facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Nitrogen [member] | Argentina [member] | Profertil S.A. [member] | ||
Disclosure of description of business [line items] | ||
Percentage of investment | 50.00% | |
Nitrogen [member] | Egypt [member] | Misr Fertilizers Production Company S.A.E. [member] | ||
Disclosure of description of business [line items] | ||
Percentage of investment | 26.00% | |
Phosphate and Sulfate [member] | ||
Disclosure of description of business [line items] | ||
Number of mines and processing plants | 2 | |
Phosphate and Sulfate [member] | Alberta [member] | Production facilities [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Phosphate and Sulfate [member] | Ohio [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Phosphate and Sulfate [member] | North Carolina [member] | ||
Disclosure of description of business [line items] | ||
Number of mines and processing plants | 1 | |
Phosphate and Sulfate [member] | Florida [member] | ||
Disclosure of description of business [line items] | ||
Number of mines and processing plants | 1 | |
Others Segment [member] | New Brunswick [member] | ||
Disclosure of description of business [line items] | ||
Number of operations | 1 | |
Others Segment [member] | Louisiana [member] | ||
Disclosure of description of business [line items] | ||
Number of plants | 1 | |
Others Segment [member] | China [member] | Sinofert [member] | ||
Disclosure of description of business [line items] | ||
Percentage of investment | 22.00% |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)Farm | Dec. 31, 2017USD ($) | Feb. 05, 2019USD ($) | Jan. 01, 2018USD ($) | |
Disclosure of detailed information about business combination [line items] | ||||
Merger and related costs | $ 170 | $ 84 | ||
Goodwill | 11,431 | 97 | ||
Nutrien Ltd. [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Merger and related costs | $ 170 | $ 84 | ||
Potash Corp [member] | Nutrien Ltd. [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Common share conversion ratio | 0.400 | |||
Agrium Inc [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Goodwill | $ 11,185 | |||
Maturity Period of accrued environmental costs are expected to be paid | 30 years | |||
Maturity period of asset retirement obligation are expected to be paid | 68 years | |||
Agrium Inc [member] | Nutrien Ltd. [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Common share conversion ratio | 2.230 | |||
Retail Acquisitions [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Goodwill | $ 197 | |||
Number of farm centers acquired | Farm | 53 | |||
Actagro LLC [member] | Subsequent Event [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Estimated purchase price | $ 340 |
Business Combinations - Summary
Business Combinations - Summary of Fair Value Allocated to Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about business combination [line items] | ||||
Cash and cash equivalents | $ 2,314 | $ 116 | $ 32 | |
Receivables | 3,342 | 489 | ||
Inventories | 4,917 | 788 | ||
Prepaid expenses and other current assets | 1,089 | 72 | ||
Assets held for sale | 1,858 | |||
Property, plant and equipment | 18,796 | 12,971 | $ 13,318 | |
Goodwill | 11,431 | 97 | ||
Other intangible assets | 2,210 | 69 | ||
Investments | 692 | 30 | ||
Other assets | 525 | 246 | ||
TOTAL ASSETS | 45,502 | 16,998 | ||
Short-term debt | 629 | 730 | ||
Payables and accrued charges | 6,703 | 836 | ||
Long-term debt | 7,591 | 3,711 | ||
Deferred income tax liabilities | 2,907 | 2,205 | ||
Pension and other post-retirement benefit liabilities | 395 | 440 | ||
Asset retirement obligations and accrued environmental costs | 1,673 | 651 | ||
Other non-current liabilities | 176 | 86 | ||
TOTAL LIABILITIES | 21,077 | $ 8,695 | ||
Agrium Inc [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Cash and cash equivalents | $ 466 | |||
Receivables | 2,600 | |||
Inventories | 3,303 | |||
Prepaid expenses and other current assets | 1,124 | |||
Assets held for sale | 95 | |||
Property, plant and equipment | 7,459 | |||
Goodwill | 11,185 | |||
Other intangible assets | 2,348 | |||
Investments | 528 | |||
Other assets | 198 | |||
TOTAL ASSETS | 29,306 | |||
Short-term debt | 867 | |||
Payables and accrued charges | 5,239 | |||
Long-term debt | 4,941 | |||
Deferred income tax liabilities | 934 | |||
Pension and other post-retirement benefit liabilities | 142 | |||
Asset retirement obligations and accrued environmental costs | 1,094 | |||
Other non-current liabilities | 79 | |||
TOTAL LIABILITIES | 13,296 | |||
Net assets (consideration for the Merger) | $ 16,010 | |||
Retail Acquisitions [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Working capital | 116 | |||
Property, plant and equipment | 107 | |||
Goodwill | 197 | |||
Other intangible assets | 8 | |||
Other assets | 14 | |||
Other non-current liabilities | (9) | |||
Total consideration | $ 433 |
Business Combinations - Summa_2
Business Combinations - Summary of Fair Value Allocated to Assets and Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | |||
Deferred income tax assets | $ 216 | $ 18 | |
Current portion of asset retirement obligations and accrued environmental costs | $ 156 | $ 72 | |
Agrium Inc [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Deferred income tax assets | $ 158 | ||
Current portion of asset retirement obligations and accrued environmental costs | 39 | ||
Trade accounts receivables [member] | Agrium Inc [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Gross contractual amount | 2,247 | ||
Uncollectible contractual amount | $ 80 |
Business Combinations - Summa_3
Business Combinations - Summary of Gross Sales and Net Earnings from Continuing Operations Before Income Taxes (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Agrium Inc [member] | |
Disclosure of detailed information about business combination [line items] | |
Sales | $ 14,551 |
Net earnings from continuing operations before income taxes | 546 |
Retail Acquisitions [member] | |
Disclosure of detailed information about business combination [line items] | |
Sales | 213 |
Net earnings from continuing operations before income taxes | $ 10 |
Business Combinations - Summa_4
Business Combinations - Summary of Gross Sales and Net Earnings from Continuing Operations Before Income Taxes (Parenthetical) (Detail) - Retail Acquisitions [member] $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of detailed information about business combination [line items] | |
Estimated annual sales | $ 441 |
Earnings before finance costs, income taxes, and depreciation and amortization | $ 42 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | |
Disclosure of operating segments [line items] | ||
Number of reportable operating segments | Segment | 4 | |
Sales | $ 19,636 | $ 4,547 |
Gross margin | 5,392 | 694 |
EBITDA | 2,006 | 901 |
Nitrogen [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 3,217 | $ 1,469 |
Restatement Adjustment [Member] | Nitrogen [member] | Phosphate and Sulfate [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 121 | |
Gross margin | 42 | |
EBITDA | $ 69 |
Segment Information - Summary o
Segment Information - Summary of Financial Information on Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||
Sales | $ 19,636 | $ 4,547 |
Freight, transportation and distribution | (864) | (537) |
Cost of goods sold | (13,380) | (3,316) |
Gross margin | 5,392 | 694 |
Selling expenses | (2,337) | (29) |
General and administrative expenses | (539) | (185) |
Provincial mining and other taxes | (250) | (146) |
Impairment of property, plant and equipment | (1,809) | |
Other expenses | (43) | (125) |
Earnings (loss) before finance costs and income taxes | 414 | 209 |
Depreciation and amortization | 1,592 | 692 |
EBITDA | 2,006 | 901 |
Assets | 45,502 | 16,998 |
Operating segments [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 4,547 | |
Eliminations [member] | ||
Disclosure of operating segments [line items] | ||
Freight, transportation and distribution | 73 | |
Net sales | (1,091) | (74) |
Cost of goods sold | 1,056 | 74 |
Gross margin | (35) | |
Earnings (loss) before finance costs and income taxes | (35) | |
EBITDA | (35) | |
Assets | (642) | |
Third party [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 19,636 | 4,547 |
Nitrogen [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 3,217 | 1,469 |
Nitrogen [member] | Operating segments [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 3,217 | 1,469 |
Freight, transportation and distribution | (358) | (129) |
Net sales | 2,859 | 1,340 |
Cost of goods sold | (2,079) | (1,084) |
Gross margin | 780 | 256 |
Selling expenses | (32) | (14) |
General and administrative expenses | (20) | (4) |
Provincial mining and other taxes | (3) | |
Other expenses | 8 | (3) |
Earnings (loss) before finance costs and income taxes | 733 | 235 |
Depreciation and amortization | 429 | 203 |
EBITDA | 1,162 | 438 |
Assets | 10,009 | 2,577 |
Nitrogen [member] | Eliminations [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 566 | 74 |
Nitrogen [member] | Third party [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 2,651 | 1,395 |
Retail [member] | Operating segments [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 12,670 | |
Net sales | 12,670 | |
Cost of goods sold | (9,635) | |
Gross margin | 3,035 | |
Selling expenses | (2,303) | |
General and administrative expenses | (100) | |
Other expenses | 75 | |
Earnings (loss) before finance costs and income taxes | 707 | |
Depreciation and amortization | 499 | |
EBITDA | 1,206 | |
Assets | 17,964 | |
Retail [member] | Eliminations [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 50 | |
Retail [member] | Third party [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 12,620 | |
Potash [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 3,016 | 1,868 |
Potash [member] | Operating segments [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 3,016 | 1,868 |
Freight, transportation and distribution | (349) | (235) |
Net sales | 2,667 | 1,633 |
Cost of goods sold | (1,183) | (829) |
Gross margin | 1,484 | 804 |
Selling expenses | (14) | (7) |
General and administrative expenses | (10) | (7) |
Provincial mining and other taxes | (244) | (146) |
Impairment of property, plant and equipment | (1,809) | |
Other expenses | (14) | (19) |
Earnings (loss) before finance costs and income taxes | (607) | 625 |
Depreciation and amortization | 404 | 232 |
EBITDA | (203) | 857 |
Assets | 11,710 | 9,756 |
Potash [member] | Eliminations [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 220 | |
Potash [member] | Third party [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 2,796 | 1,868 |
Phosphate and Sulfate [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 1,897 | 1,284 |
Impairment of property, plant and equipment | 305 | |
Phosphate and Sulfate [member] | Operating segments [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 1,897 | 1,284 |
Freight, transportation and distribution | (230) | (173) |
Net sales | 1,667 | 1,111 |
Cost of goods sold | (1,539) | (1,477) |
Gross margin | 128 | (366) |
Selling expenses | (10) | (6) |
General and administrative expenses | (9) | (4) |
Provincial mining and other taxes | (1) | |
Other expenses | (6) | (4) |
Earnings (loss) before finance costs and income taxes | 102 | (380) |
Depreciation and amortization | 206 | 220 |
EBITDA | 308 | (160) |
Assets | 2,783 | 1,938 |
Phosphate and Sulfate [member] | Eliminations [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 328 | |
Phosphate and Sulfate [member] | Third party [member] | ||
Disclosure of operating segments [line items] | ||
Sales | 1,569 | 1,284 |
Others [member] | ||
Disclosure of operating segments [line items] | ||
Selling expenses | 22 | (2) |
General and administrative expenses | (400) | (170) |
Provincial mining and other taxes | (2) | |
Other expenses | (106) | (99) |
Earnings (loss) before finance costs and income taxes | (486) | (271) |
Depreciation and amortization | 54 | 37 |
EBITDA | (432) | (234) |
Assets | $ 3,678 | $ 2,727 |
Segment Information - Summary_2
Segment Information - Summary of Financial Information on Segments (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||
Assets relating to equity-accounted investees | $ 692 | $ 30 |
Impairment of property, plant and equipment | (1,809) | |
Assets held for sale | 1,858 | |
Nitrogen [member] | ||
Disclosure of operating segments [line items] | ||
Assets relating to equity-accounted investees | 428 | |
Retail [member] | ||
Disclosure of operating segments [line items] | ||
Assets relating to equity-accounted investees | $ 208 | |
Phosphate and Sulfate [member] | ||
Disclosure of operating segments [line items] | ||
Impairment of property, plant and equipment | 305 | |
Others [member] | ||
Disclosure of operating segments [line items] | ||
Assets held for sale | $ 1,858 |
Segment Information - Summary_3
Segment Information - Summary of Financial Information by Geographical Area (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of geographical areas [line items] | ||
Sales | $ 19,636 | $ 4,547 |
Non-current assets | 33,399 | 13,320 |
Canpotex customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 1,657 | 988 |
United States customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 11,891 | 2,715 |
Canada customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 2,790 | 289 |
Mexico customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 85 | 85 |
Trinidad customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 190 | 132 |
Brazil customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 112 | 27 |
Colombia customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 51 | 48 |
Other Latin America Customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 171 | 68 |
India customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 151 | 104 |
Other customers [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 158 | 91 |
Australia customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 1,681 | |
Argentina Customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 387 | |
Europe customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 312 | |
United States [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 11,037 | 2,098 |
Non-current assets | 14,501 | 3,259 |
United States [member] | United States customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 10,488 | 1,657 |
United States [member] | Canada customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 208 | 194 |
United States [member] | Mexico customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 70 | 76 |
United States [member] | Trinidad customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 9 | |
United States [member] | Brazil customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 38 | 26 |
United States [member] | Colombia customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 9 | 12 |
United States [member] | Other Latin America Customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 20 | 26 |
United States [member] | India customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 151 | 97 |
United States [member] | Other customers [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 22 | 10 |
United States [member] | Australia customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 2 | |
United States [member] | Argentina Customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 9 | |
United States [member] | Europe customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 11 | |
Canada [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 5,546 | 1,868 |
Non-current assets | 17,100 | 9,501 |
Canada [member] | Canpotex customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 1,657 | 988 |
Canada [member] | United States customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 1,249 | 784 |
Canada [member] | Canada customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 2,582 | 95 |
Canada [member] | Brazil customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 1 | |
Canada [member] | Europe customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 58 | |
Trinidad [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 575 | 581 |
Non-current assets | 570 | 554 |
Trinidad [member] | United States customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 153 | 274 |
Trinidad [member] | Mexico customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 15 | 9 |
Trinidad [member] | Trinidad customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 181 | 132 |
Trinidad [member] | Colombia customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 42 | 36 |
Trinidad [member] | Other Latin America Customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 59 | 42 |
Trinidad [member] | India customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 7 | |
Trinidad [member] | Other customers [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 32 | 81 |
Trinidad [member] | Europe customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 93 | |
Other [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 632 | |
Non-current assets | 621 | $ 6 |
Other [member] | United States customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 1 | |
Other [member] | Brazil customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 74 | |
Other [member] | Other Latin America Customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 92 | |
Other [member] | Other customers [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 4 | |
Other [member] | Argentina Customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 378 | |
Other [member] | Europe customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 83 | |
Australia [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 1,846 | |
Non-current assets | 607 | |
Australia [member] | Other customers [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 100 | |
Australia [member] | Australia customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | 1,679 | |
Australia [member] | Europe customer [member] | ||
Disclosure of geographical areas [line items] | ||
Sales | $ 67 |
Segment Information - Summary_4
Segment Information - Summary of Financial Information by Geographical Area (Parenthetical) (Detail) - Sales revenue [member] - Canpotex customer [member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Latin America [member] | ||
Disclosure of geographical areas [line items] | ||
Sales volume percentage | 33.00% | 30.00% |
China [member] | ||
Disclosure of geographical areas [line items] | ||
Sales volume percentage | 18.00% | 18.00% |
India [member] | ||
Disclosure of geographical areas [line items] | ||
Sales volume percentage | 10.00% | 12.00% |
Other Asian countries [member] | ||
Disclosure of geographical areas [line items] | ||
Sales volume percentage | 31.00% | 33.00% |
Other countries [member] | ||
Disclosure of geographical areas [line items] | ||
Sales volume percentage | 8.00% | 7.00% |
Segment Information - Summary_5
Segment Information - Summary of Disaggregated Revenue from Contracts with Customers by Product Line or Geographic Location for Each Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 19,636 | $ 4,547 |
Retail business unit [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 12,670 | |
Retail business unit [member] | Crop nutrients [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 4,577 | |
Retail business unit [member] | Crop protection products [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 4,862 | |
Retail business unit [member] | Seed [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,687 | |
Retail business unit [member] | Merchandise [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 734 | |
Retail business unit [member] | Services and others [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 810 | |
Potash [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 3,016 | 1,868 |
Potash [member] | North America [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,359 | 878 |
Potash [member] | Offshore [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,657 | 990 |
Nitrogen [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 3,217 | 1,469 |
Nitrogen [member] | Ammonia [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,061 | 628 |
Nitrogen [member] | Urea [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 979 | 330 |
Nitrogen [member] | Solutions and nitrates [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 729 | 478 |
Nitrogen [member] | Other nitrogen and purchased products [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 448 | 33 |
Phosphate and Sulfate [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,897 | 1,284 |
Phosphate and Sulfate [member] | Fertilizer [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,141 | 739 |
Phosphate and Sulfate [member] | Industrial and Feed [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 469 | 537 |
Phosphate and Sulfate [member] | Ammonium sulfate [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 96 | |
Phosphate and Sulfate [member] | Other phosphate and purchased products [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 191 | $ 8 |
Nature of Expenses - Summary of
Nature of Expenses - Summary of Detailed Information about Expenses by Nature (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of expenses [line Items] | ||
Freight, transportation and distribution | $ 864 | $ 537 |
Cost of goods sold | 13,380 | 3,316 |
Selling expenses | 2,337 | 29 |
Other | 3,783 | 876 |
General and administrative expenses | 539 | 185 |
Total | 17,163 | 4,192 |
Other expenses | 43 | 125 |
Purchased and produced raw materials and product for resale [member] | ||
Disclosure of expenses [line Items] | ||
Cost of goods sold | 11,145 | 1,724 |
Total | 11,145 | 1,724 |
Depreciation and amortization [member] | ||
Disclosure of expenses [line Items] | ||
Cost of goods sold | 1,038 | 655 |
Other | 554 | 37 |
Total | 1,592 | 692 |
Employee costs [member] | ||
Disclosure of expenses [line Items] | ||
Cost of goods sold | 713 | 563 |
Other | 1,236 | 113 |
Total | 1,949 | 676 |
Freight direct and indirect [member] | ||
Disclosure of expenses [line Items] | ||
Cost of goods sold | 303 | |
Other | 631 | 372 |
Total | 934 | 372 |
Impairment of property, plant and equipment [member] | ||
Disclosure of expenses [line Items] | ||
Cost of goods sold | 305 | |
Total | 305 | |
Off-site warehouse costs [member] | ||
Disclosure of expenses [line Items] | ||
Other | 69 | 47 |
Total | 69 | 47 |
Railcar and vessel costs [member] | ||
Disclosure of expenses [line Items] | ||
Other | 131 | 102 |
Total | 131 | 102 |
Merger and related costs [member] | ||
Disclosure of expenses [line Items] | ||
Other | 170 | 84 |
Total | 170 | 84 |
Other operating leases [member] | ||
Disclosure of expenses [line Items] | ||
Cost of goods sold | 38 | |
Other | 110 | |
Total | 148 | |
Fleet fuel, repairs and maintenance [member] | ||
Disclosure of expenses [line Items] | ||
Other | 183 | |
Total | 183 | |
Other [member] | ||
Disclosure of expenses [line Items] | ||
Cost of goods sold | 143 | 69 |
Other | 699 | 121 |
Total | $ 842 | $ 190 |
Nature of Expenses - Summary _2
Nature of Expenses - Summary of Detailed Information about Expenses by Nature (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of expenses [abstract] | |
Gain on curtailment of defined benefit pension and other post-retirement benefit plans | $ 157 |
Provincial Mining and Other T_3
Provincial Mining and Other Taxes - Summary of Detailed Information About Provincial Mining and Other Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Provincial Mining And Other Taxes [abstract] | ||
Saskatchewan potash production tax | $ 160 | $ 95 |
Saskatchewan resource surcharge and other | 90 | 51 |
Total | $ 250 | $ 146 |
Other Expenses - Summary of Det
Other Expenses - Summary of Detailed Information About Other Income and Expenses (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Operating Income Expense [abstract] | ||
Merger and related costs | $ (170) | $ (84) |
Defined Benefit Plans Curtailment Gain (Note 28) | 157 | |
Foreign exchange gain (loss) | 10 | (21) |
Other expenses | (40) | (20) |
Other (expenses) income | $ (43) | $ (125) |
Finance Costs - Summary of Fina
Finance Costs - Summary of Finance Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of finance costs [line items] | ||
Unwinding of discount on asset retirement obligations (Note 20) | $ 51 | $ 17 |
Interest on net defined benefit pension and other post-retirement plan obligations (Note 28) | 15 | 19 |
Borrowing costs capitalized to property, plant and equipment | (12) | (11) |
Interest income | (17) | (2) |
Finance costs | 538 | 238 |
Short-term debt [member] | ||
Disclosure of finance costs [line items] | ||
Interest expense | 129 | 9 |
Long-term debt [member] | ||
Disclosure of finance costs [line items] | ||
Interest expense | $ 372 | $ 206 |
Finance Costs - Additional Info
Finance Costs - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of finance costs [abstract] | ||
Average capitalization rate | 4.40% | 4.40% |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of income tax expense benefits [line Items] | ||
(Loss) income before income taxes | $ (124) | $ (29) |
Canadian federal and provincial statutory income tax rate | 27.00% | 27.00% |
Income tax at statutory rates | $ 33 | $ 8 |
Adjusted for the effect of: | ||
Impact of foreign tax rates (US, Trinidad, Australia and other) | 58 | (25) |
Production-related deductions | 15 | 14 |
Non-taxable income | 10 | |
Foreign accrual property income | (15) | (3) |
Impact of tax rate changes | 187 | |
Other | (8) | 2 |
Income tax recovery included in net (loss) earnings from continuing operations | 93 | 183 |
Canada [member] | ||
Disclosure of income tax expense benefits [line Items] | ||
(Loss) income before income taxes | (1,195) | 123 |
United States [member] | ||
Disclosure of income tax expense benefits [line Items] | ||
(Loss) income before income taxes | 619 | (271) |
Australia [member] | ||
Disclosure of income tax expense benefits [line Items] | ||
(Loss) income before income taxes | 96 | |
Trinidad [member] | ||
Disclosure of income tax expense benefits [line Items] | ||
(Loss) income before income taxes | 98 | 95 |
Other countries [member] | ||
Disclosure of income tax expense benefits [line Items] | ||
(Loss) income before income taxes | $ 258 | $ 24 |
Income Taxes - Summary of Total
Income Taxes - Summary of Total Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax | ||
Tax expense for current year | $ (195) | $ (70) |
Adjustments in respect of prior years | 15 | (20) |
Total current income tax expense | (180) | (90) |
Deferred income tax | ||
Origination and reversal of temporary differences | 283 | 69 |
Adjustments in respect of prior years | (12) | 20 |
Impact of tax rate changes | 187 | |
Other | 2 | (3) |
Total deferred income tax recovery | 273 | 273 |
Income tax recovery included in net (loss) earnings from continuing operations | $ 93 | $ 183 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current income tax assets | ||
Current | $ 248 | $ 24 |
Long-term | 36 | 64 |
Deferred income tax assets | 216 | 18 |
Total income tax assets | 500 | 106 |
Current income tax liabilities | ||
Current | (47) | (16) |
Deferred income tax liabilities | (2,907) | (2,205) |
Total income tax liabilities | (3,018) | (2,264) |
Receivables [member] | ||
Current income tax assets | ||
Current | 248 | 24 |
Other assets [member] | ||
Current income tax assets | ||
Long-term | 36 | 64 |
Deferred income tax assets | 216 | 18 |
Payables and accrued charges [member] | ||
Current income tax liabilities | ||
Current | (47) | (16) |
Other non current liabilities [member] | ||
Current income tax liabilities | ||
Non-current | (64) | (43) |
Deferred income tax liabilities [member] | ||
Current income tax liabilities | ||
Deferred income tax liabilities | $ (2,907) | $ (2,205) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | $ 216 | $ 18 | |
Deferred income tax liabilities | (2,907) | (2,205) | |
Deferred income tax (liability) asset | (2,691) | (2,187) | $ (2,453) |
Deferred income tax recovery (expense) recognized in net income | 273 | 273 | |
Asset retirement obligations and accrued environmental costs [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 412 | 120 | |
Deferred income tax recovery (expense) recognized in net income | (11) | (56) | |
Tax loss and other carryforwards [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 261 | 13 | |
Deferred income tax recovery (expense) recognized in net income | 198 | (105) | |
Pension and other post retirement benefits liabilities [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 130 | 124 | |
Deferred income tax recovery (expense) recognized in net income | (44) | (22) | |
Long term debt [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 110 | ||
Deferred income tax recovery (expense) recognized in net income | (10) | ||
Receivables [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 58 | ||
Deferred income tax recovery (expense) recognized in net income | 3 | ||
Inventories [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 54 | 4 | |
Deferred income tax recovery (expense) recognized in net income | 13 | (2) | |
Derivatives [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 17 | 13 | |
Deferred income tax recovery (expense) recognized in net income | (15) | ||
Other assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 57 | 11 | |
Deferred income tax recovery (expense) recognized in net income | (18) | (11) | |
Property plant and equipment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax liabilities | (3,218) | (2,441) | |
Deferred income tax recovery (expense) recognized in net income | 132 | 472 | |
Goodwill and other intangible assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax liabilities | (546) | (17) | |
Deferred income tax recovery (expense) recognized in net income | 31 | ||
Other Liabilities1 [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax liabilities | (26) | (14) | |
Deferred income tax recovery (expense) recognized in net income | $ (6) | $ (3) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Net Deferred Income Tax Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance, beginning of year | $ (2,187) | $ (2,453) |
Merger impact (Note 3) | (776) | |
Income tax recovery recognized in net (loss) earnings from continuing operations | 273 | 273 |
Income tax recovery recognized in net earnings from discontinued operations | 17 | |
Income tax charge recognized in OCI | (22) | (43) |
Reclassified as held for sale | 36 | |
Other | 4 | |
Balance, end of year | $ (2,691) | $ (2,187) |
Income Taxes - Summary of Amoun
Income Taxes - Summary of Amounts and Expiry Dates of Unused Tax Losses and Unused Tax Credits (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Unused operating losses [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amount | $ 1,083 |
Expiry Date | 2020 - Indefinite |
Unused capital losses [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amount | $ 795 |
Expiry Date | Indefinite |
Unused investment tax credits [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Amount | $ 46 |
Expiry Date | 2019 - 2037 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of income taxes [abstract] | ||
Tax losses and deductible temporary differences for which no deferred tax assets recognized | $ 932 | |
Temporary differences associated with investments in subsidiaries and equity-accounted investees, for which deferred tax liabilities have not been recognized | $ 8,710 | $ 5,252 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Impact of Discontinued Operations (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of Discontinued Operations [line items] | |
Proceeds 1 | $ 6,410 |
Gain (Loss) on Sale | 4,380 |
Gain (Loss) on Sale Net of Income Taxes | 3,473 |
AOCI | (19) |
Net Earnings and Retained Earnings | 3,492 |
SQM [member] | |
Disclosure of Discontinued Operations [line items] | |
Proceeds 1 | 5,126 |
Gain (Loss) on Sale | 4,278 |
Gain (Loss) on Sale Net of Income Taxes | 3,366 |
Net Earnings and Retained Earnings | 3,366 |
ICL [member] | |
Disclosure of Discontinued Operations [line items] | |
Proceeds 1 | 685 |
Gain (Loss) on Sale | (19) |
Gain (Loss) on Sale Net of Income Taxes | (19) |
AOCI | (19) |
APC [member] | |
Disclosure of Discontinued Operations [line items] | |
Proceeds 1 | 501 |
Gain (Loss) on Sale | 121 |
Gain (Loss) on Sale Net of Income Taxes | 126 |
Net Earnings and Retained Earnings | 126 |
Conda Phosphate operations [member] | |
Disclosure of Discontinued Operations [line items] | |
Proceeds 1 | $ 98 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Assets and Liabilities Held for Sale (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of assets and liabilities held for sale [line items] | ||
Investment | $ 878 | $ 292 |
Current tax asset | 248 | 24 |
Assets held for sale | 1,858 | |
Payables and accrued charges | $ 6,703 | 836 |
Deferred income tax liabilities | 36 | |
Liabilities on assets held for sale | 36 | |
Disposal groups classified as held for sale [member] | ||
Disclosure of assets and liabilities held for sale [line items] | ||
Current tax asset | 4 | |
Payables and accrued charges | 0 | |
Disposal groups classified as held for sale [member] | SQM And APC [member] | ||
Disclosure of assets and liabilities held for sale [line items] | ||
Investment | 1,146 | |
Disposal groups classified as held for sale [member] | ICL [member] | ||
Disclosure of assets and liabilities held for sale [line items] | ||
Investment | $ 708 |
Discontinued Operations - Sum_3
Discontinued Operations - Summary of Net Earnings from Discontinued Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Discontinued Operations [line items] | ||
Gain on disposal of investments in SQM and APC | $ 4,380 | |
Net earnings from discontinued operations | 3,604 | $ 173 |
Discontinued operations [member] | ||
Disclosure of Discontinued Operations [line items] | ||
Gain on disposal of investments in SQM and APC | 4,399 | |
Dividend income of SQM, APC and ICL | 156 | 24 |
Share in earnings of SQM and APC | 151 | |
Income tax expense | (951) | (2) |
Net earnings from discontinued operations | $ 3,604 | $ 173 |
Discontinued Operations - Sum_4
Discontinued Operations - Summary of Net Earnings from Discontinued Operations (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Discontinued Operations [line items] | |||
Earnings from discontinued operations | $ 3,604 | $ 173 | |
Repatriation of cash | 2,314 | $ 116 | $ 32 |
SQM [member] | Repatriation Taxes [member] | |||
Disclosure of Discontinued Operations [line items] | |||
Disposals of investments | (912) | ||
Earnings from discontinued operations | (39) | ||
Repatriation of cash | (18) | ||
Dividend income received | (26) | ||
APC [member] | Repatriation Taxes [member] | |||
Disclosure of Discontinued Operations [line items] | |||
Disposals of investments | $ 5 |
Discontinued Operations - Sum_5
Discontinued Operations - Summary of Cash Flows from Discontinued Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Discontinued Operations [line items] | ||
Proceeds from disposal of discontinued operations, net of tax | $ 5,394 | |
Discontinued operations [member] | ||
Disclosure of Discontinued Operations [line items] | ||
Dividends from discontinued operations | 156 | $ 176 |
Income tax related to the disposal of discontinued operations | (26) | |
Dividends from discontinued operations, net of tax | 130 | $ 176 |
Proceeds from disposal of discontinued operations 1 | 6,371 | |
Income tax related to the disposal of discontinued operations | (977) | |
Proceeds from disposal of discontinued operations, net of tax | $ 5,394 |
Discontinued Operations - Sum_6
Discontinued Operations - Summary of Cash Flows from Discontinued Operations (Parenthetical) (Detail) | Dec. 31, 2018USD ($) |
Disclosure of discontinued operation [abstract] | |
Receivable from disposal of discontinued operations | $ 39 |
Net Earnings per Share - Summar
Net Earnings per Share - Summary of Net Earnings per Share (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | ||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES | 624,900,000 | 840,079,000 |
Dilutive effect of stock options | 199,000 | |
Dilutive effect of share-settled performance share units ("PSUs") | 38,000 | |
Weighted average number of diluted common shares | 624,900,000 | 840,316,000 |
Net Earnings per Share - Summ_2
Net Earnings per Share - Summary of Net Earnings per Share (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018shares | |
Earnings per share [abstract] | |
Diluted weighted average share, stock options excluded due to their anti-dilutive effect | 658,000 |
Diluted weighted average share, equity-settled PSUs excluded due to their anti-dilutive effect | 137,000 |
Net Earnings per Share - Summ_3
Net Earnings per Share - Summary of Options Excluded from Calculation of Diluted Net Earnings per Share (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [line items] | ||
Number of options excluded | 5,721,656 | 12,304,351 |
Performance option plan years fully excluded [member] | ||
Earnings per share [line items] | ||
Option plan years fully excluded | 2009-2015 | 2008-2015, 2017 |
Stock option plan years fully excluded [member] | ||
Earnings per share [line items] | ||
Option plan years fully excluded | 2015, 2018 | - |
Consolidated Statements of Ca_4
Consolidated Statements of Cash Flows - Summary of Cash Provided by Operating Activities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES | |||
Net earnings | [1] | $ 3,573 | $ 327 |
Adjustments to reconcile net earnings to cash provided by operating activities | |||
Gain on sale of investments in SQM and APC | (4,399) | ||
Income tax related to the sale of the investment in SQM | 977 | ||
Depreciation and amortization | 1,592 | 692 | |
Impairment of property, plant and equipment (Note 16) | 1,809 | 305 | |
Share-based compensation (Note 29) | 116 | 11 | |
Recovery of deferred income tax | (290) | (273) | |
Other long-term liabilities and miscellaneous | (188) | 91 | |
Subtotal of adjustments | (383) | 826 | |
CHANGES IN NON-CASH OPERATING WORKING CAPITAL | |||
Receivables | (153) | 47 | |
Inventories | (887) | (10) | |
Prepaid expenses and other current assets | 561 | (13) | |
Payables and accrued charges | (659) | 48 | |
Subtotal of changes in non-cash operating working capital | (1,138) | 72 | |
CASH PROVIDED BY OPERATING ACTIVITIES | 2,052 | 1,225 | |
SUPPLEMENTAL CASH FLOWS DISCLOSURES | |||
Interest paid | 507 | 198 | |
Income taxes paid | $ 1,155 | $ 83 | |
[1] | All equity transactions were attributable to common shareholders. |
Consolidated Statements of Ca_5
Consolidated Statements of Cash Flows - Summary of Changes in Liabilities Arising From Financing Activities (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning Balance | $ 4,441 | $ 4,591 |
Debt acquired in Merger (Note 3) | 5,808 | |
Cash flows | (939) | (160) |
Non-cash changes | 10 | |
Foreign currency translation and other non-cash changes | (87) | |
Ending Balance | 9,223 | 4,441 |
Short-term debt and current portion of long-term debt [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning Balance | 730 | 884 |
Debt acquired in Merger (Note 3) | 878 | |
Cash flows | (927) | (159) |
Reclassifications | 1,023 | |
Non-cash changes | 5 | |
Foreign currency translation and other non-cash changes | (72) | |
Ending Balance | 1,632 | 730 |
Long-term debt [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Beginning Balance | 3,711 | 3,707 |
Debt acquired in Merger (Note 3) | 4,930 | |
Cash flows | (12) | (1) |
Reclassifications | (1,023) | |
Non-cash changes | 5 | |
Foreign currency translation and other non-cash changes | (15) | |
Ending Balance | $ 7,591 | $ 3,711 |
Financial Instruments and Rel_3
Financial Instruments and Related Risk Management - Summary of Maximum Exposure to Credit Risk (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of credit risk exposure [line items] | ||
Maximum Exposure To Credit Risk | $ 5,413 | $ 591 |
Cash and cash equivalents [member] | ||
Disclosure of credit risk exposure [line items] | ||
Maximum Exposure To Credit Risk | 2,314 | 116 |
Trade accounts receivables [member] | ||
Disclosure of credit risk exposure [line items] | ||
Maximum Exposure To Credit Risk | 3,094 | 465 |
Other current assets - derivatives [member] | ||
Disclosure of credit risk exposure [line items] | ||
Maximum Exposure To Credit Risk | $ 5 | 7 |
Other non-current assets - derivatives [member] | ||
Disclosure of credit risk exposure [line items] | ||
Maximum Exposure To Credit Risk | $ 3 |
Financial Instruments and Rel_4
Financial Instruments and Related Risk Management - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of detailed information about financial instruments [line items] | |
Percentage of future bad debts covered by indemnification agreement | 52.00% |
Maximum percentage of qualified customer loans covered for bad debts Indemnification agreement | 5.00% |
Outstanding customer credit with financial institution | $ 571 |
Industrial and Feed Customers [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Credit period | 30 days |
Commodity price risk [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Maximum period for fixed price natural gas hedges | 10 years |
Bottom of range [member] | Fertilizer Customers [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Credit period | 15 days |
Bottom of range [member] | Retail Customer [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Credit period | 30 days |
Bottom of range [member] | Customer [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Credit review frequency period | 12 months |
Top of range [member] | Fertilizer Customers [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Credit period | 30 days |
Top of range [member] | Export Sales Customers [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Credit period | 180 days |
Top of range [member] | Retail Customer [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Credit period | 90 days |
Top of range [member] | Customer [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Credit review frequency period | 24 months |
Financial Instruments and Rel_5
Financial Instruments and Related Risk Management - Summary of Available Credit Facilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Amount Outstanding and Committed | $ 391 | $ 730 |
Uncommitted revolving demand facility [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total Amount | 500 | |
Amount Available | 500 | |
Accounts receivable securitization [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Amount Available | 500 | |
Liquidity risk [member] | Unsecured revolving term credit facility [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total Amount | 4,500 | |
Amount Outstanding and Committed | 391 | |
Amount Available | 4,109 | |
Liquidity risk [member] | Uncommitted revolving demand facility [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total Amount | 500 | |
Amount Available | 500 | |
Liquidity risk [member] | Accounts receivable securitization [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total Amount | 500 | |
Amount Available | 500 | |
Liquidity risk [member] | Other credit facilities [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total Amount | 520 | |
Amount Outstanding and Committed | 238 | |
Amount Available | $ 282 |
Financial Instruments and Rel_6
Financial Instruments and Related Risk Management - Summary of Maturity Analysis of Financial Liabilities and Gross Settled Derivative Contracts (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Short-term debt | $ 629 | $ 730 |
Current portion of long-term debt and Long-term debt | 8,205 | $ 3,750 |
Short-term debt, contractual cash flows | 629 | |
Payables and accrued charges, contractual cash flows | 4,695 | |
Current portion of long-term debt and Long-term debt, contractual cash flows | 12,818 | |
Derivatives | 72 | |
Contractual cash flows | 18,214 | |
Carrying amount [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Short-term debt | 629 | |
Payables and accrued charges | 4,695 | |
Current portion of long-term debt and Long-term debt | 8,594 | |
Derivatives | 71 | |
Carrying amount of liability | 13,989 | |
Not later than one year [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Short-term debt, contractual cash flows | 629 | |
Payables and accrued charges, contractual cash flows | 4,695 | |
Current portion of long-term debt and Long-term debt, contractual cash flows | 1,362 | |
Derivatives | 44 | |
Contractual cash flows | 6,730 | |
Later than one year and not later than three years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Current portion of long-term debt and Long-term debt, contractual cash flows | 1,121 | |
Derivatives | 19 | |
Contractual cash flows | 1,140 | |
Later than three years and not later than five years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Current portion of long-term debt and Long-term debt, contractual cash flows | 1,583 | |
Derivatives | 9 | |
Contractual cash flows | 1,592 | |
Over 5 years [member] | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Current portion of long-term debt and Long-term debt, contractual cash flows | 8,752 | |
Contractual cash flows | $ 8,752 |
Financial Instruments and Rel_7
Financial Instruments and Related Risk Management - Summary of Maturity Analysis of Financial Liabilities and Gross Settled Derivative Contracts (Parenthetical) (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Disclosure of maturity analysis for derivative financial liabilities [abstract] | |
Payable and accrued charges, excludes non-financial liabilities and includes trade payables | $ 500 |
Financial Instruments and Rel_8
Financial Instruments and Related Risk Management - Summary of Fair Value Hierarchy for Financial Assets and Financial Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value measurement of assets and liability [line items] | |||
Derivative instrument assets | $ 9 | ||
Investments at FVTOCI | $ 186 | 262 | |
Cash and cash equivalents | 2,314 | 116 | $ 32 |
Borrowings, current portion | 1,003 | ||
Derivative Instruments Liabilities [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Derivative instrument liabilities | (64) | ||
Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Derivative instrument assets | 5 | ||
Investments at FVTOCI | 186 | 970 | |
Derivative instrument liabilities | (71) | ||
Marketable Securities [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Other current financial assets-marketable securities | 97 | ||
Financial assets at amortised cost, class [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Cash and cash equivalents | 2,314 | ||
Senior notes and debentures [member] | Financial liabilities at amortised cost, class [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Borrowings, current portion | (995) | ||
Borrowings, non current | (7,569) | ||
Fixed And Floating Rate Debt [member] | Financial liabilities at amortised cost, class [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Borrowings, current portion | (8) | ||
Borrowings, non current | (22) | ||
Senior Notes 1 [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Borrowings, non current | (3,707) | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [member] | Derivative Instruments Liabilities [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Derivative instrument liabilities | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Derivative instrument assets | 0 | ||
Investments at FVTOCI | 186 | 970 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [member] | Marketable Securities [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Other current financial assets-marketable securities | 12 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [member] | Financial assets at amortised cost, class [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Cash and cash equivalents | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [member] | Senior notes and debentures [member] | Financial liabilities at amortised cost, class [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Borrowings, current portion | 0 | ||
Borrowings, non current | (1,004) | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [member] | Fixed And Floating Rate Debt [member] | Financial liabilities at amortised cost, class [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Borrowings, current portion | 0 | ||
Borrowings, non current | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [member] | Senior Notes 1 [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Borrowings, non current | (490) | ||
Level 2 of fair value hierarchy [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Derivative instrument assets | 9 | ||
Level 2 of fair value hierarchy [member] | Derivative Instruments Liabilities [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Derivative instrument liabilities | (64) | ||
Level 2 of fair value hierarchy [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Derivative instrument assets | 5 | ||
Investments at FVTOCI | 0 | 0 | |
Derivative instrument liabilities | (71) | ||
Level 2 of fair value hierarchy [member] | Marketable Securities [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Other current financial assets-marketable securities | 85 | ||
Level 2 of fair value hierarchy [member] | Financial assets at amortised cost, class [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Cash and cash equivalents | 2,314 | ||
Level 2 of fair value hierarchy [member] | Senior notes and debentures [member] | Financial liabilities at amortised cost, class [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Borrowings, current portion | (1,009) | ||
Borrowings, non current | (6,177) | ||
Level 2 of fair value hierarchy [member] | Fixed And Floating Rate Debt [member] | Financial liabilities at amortised cost, class [member] | Recurring fair value measurement [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Borrowings, current portion | (8) | ||
Borrowings, non current | $ (22) | ||
Level 2 of fair value hierarchy [member] | Senior Notes 1 [member] | |||
Disclosure of fair value measurement of assets and liability [line items] | |||
Borrowings, non current | $ (3,555) |
Financial Instruments and Rel_9
Financial Instruments and Related Risk Management - Summary of Fair Value Hierarchy for Financial Assets and Financial Liabilities (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of financial liabilities [abstract] | |
Transfers between Level 1 and Level 2, assets | $ 0 |
Transfers between Level 1 and Level 2, liabilities | $ 0 |
Financial Instruments and Re_10
Financial Instruments and Related Risk Management - Summary of Recognized Financial Instruments that are Offset, or Subject to Enforceable Master Netting Arrangements (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Derivative Financial Asset And Liabilities Offsetting Arrangements [line items] | ||
Financial assets (liabilities), Gross | $ (211) | $ (213) |
Financial assets (liabilities), Offset | 149 | 158 |
Financial assets (liabilities), Net Amount Presented | (62) | (55) |
Natural gas derivative asset [member] | ||
Disclosure Of Derivative Financial Asset And Liabilities Offsetting Arrangements [line items] | ||
Financial assets (liabilities), Gross | 31 | 11 |
Financial assets (liabilities), Offset | (27) | (2) |
Financial assets (liabilities), Net Amount Presented | 4 | 9 |
Natural gas derivative liabilities [member] | ||
Disclosure Of Derivative Financial Asset And Liabilities Offsetting Arrangements [line items] | ||
Financial assets (liabilities), Gross | (92) | (74) |
Financial assets (liabilities), Offset | 26 | 10 |
Financial assets (liabilities), Net Amount Presented | (66) | (64) |
Other Long Term Debt [member] | ||
Disclosure Of Derivative Financial Asset And Liabilities Offsetting Arrangements [line items] | ||
Financial assets (liabilities), Gross | (150) | (150) |
Financial assets (liabilities), Offset | $ 150 | $ 150 |
Financial Instruments and Re_11
Financial Instruments and Related Risk Management - Summary of Recognized Financial Instruments that are Offset, or Subject to Enforceable Master Netting Arrangements (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Derivative Financial Asset And Liabilities Offsetting Arrangements [line items] | ||
Other long-term debt, an event of default for non-payment of other debt | $ 25 | |
Natural gas derivative asset [member] | ||
Disclosure Of Derivative Financial Asset And Liabilities Offsetting Arrangements [line items] | ||
Cash margin deposits | 0 | $ (1) |
Natural gas derivative liabilities [member] | ||
Disclosure Of Derivative Financial Asset And Liabilities Offsetting Arrangements [line items] | ||
Cash margin deposits | $ 18 | $ 38 |
Financial Instruments and Re_12
Financial Instruments and Related Risk Management - Summary of Natural Gas Derivatives Outstanding (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)$ / MMBTU | Dec. 31, 2017USD ($)$ / MMBTU | |
NYMEX swaps [member] | ||
Disclosure Of Derivative Contract Outstanding [line items] | ||
Notional | $ 22 | $ 27 |
Average contract price | $ / MMBTU | 4.26 | 4.89 |
Fair value of assets (liabilities) | $ (35) | $ (54) |
NYMEX swaps [member] | Bottom of range [member] | ||
Disclosure Of Derivative Contract Outstanding [line items] | ||
Maturities | 2,019 | 2,018 |
NYMEX swaps [member] | Top of range [member] | ||
Disclosure Of Derivative Contract Outstanding [line items] | ||
Maturities | 2,022 | 2,022 |
AECO Swaps [member] | ||
Disclosure Of Derivative Contract Outstanding [line items] | ||
Notional | $ 26 | |
Maturities | 2,019 | |
Average contract price | $ / MMBTU | 1.92 | |
Fair value of assets (liabilities) | $ (25) |
Receivables - Summary of Receiv
Receivables - Summary of Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other current receivables [abstract] | ||
Less provisions for impairment of trade accounts receivable | $ (90) | $ (6) |
Trade accounts receivable | 2,746 | 390 |
Rebates | 169 | |
Income taxes (Note 9) | 248 | 24 |
Other non-trade accounts | 179 | 75 |
Receivables | 3,342 | 489 |
Trade accounts receivables [member] | Third party [member] | ||
Trade and other current receivables [abstract] | ||
Trade accounts, gross | 2,628 | 314 |
Trade accounts receivables [member] | Canpotex [member] | ||
Trade and other current receivables [abstract] | ||
Trade accounts, gross | $ 208 | $ 82 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Classes of current inventories [abstract] | ||
Purchased for resale | $ 3,545 | |
Finished products | 501 | $ 260 |
Intermediate products | 218 | 202 |
Raw materials | 275 | 62 |
Materials and supplies | 378 | 264 |
Inventories | $ 4,917 | $ 788 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Classes of inventories [line items] | ||
Cost of goods sold | $ 13,380 | $ 3,316 |
Inventories [member] | ||
Classes of inventories [line items] | ||
Cost of goods sold | $ 13,083 | $ 2,791 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Bottom of range [member] | Land Improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful Life Range (years) | 5 years |
Bottom of range [member] | Buildings and Improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful Life Range (years) | 2 years |
Bottom of range [member] | Machinery And Equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful Life Range (years) | 1 years |
Top of range [member] | Land Improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful Life Range (years) | 80 years |
Top of range [member] | Buildings and Improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful Life Range (years) | 60 years |
Top of range [member] | Machinery And Equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful Life Range (years) | 80 years |
Weighted average [member] | Land Improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful Life Range (years) | 35 years |
Weighted average [member] | Buildings and Improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful Life Range (years) | 38 years |
Weighted average [member] | Machinery And Equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful Life Range (years) | 25 years |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Reconciliation of Changes in Property Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 12,971 | $ 13,318 |
Merger impact (Note 3) | 7,459 | |
Other acquisitions | 107 | |
Additions | 1,446 | 625 |
Disposals | (47) | |
Foreign currency translation | (47) | |
Other adjustments | 41 | 20 |
Depreciation | (1,325) | (687) |
Impairment | (1,809) | |
Impairment | (305) | |
Ending balance | 18,796 | 12,971 |
Carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 20,142 | |
Ending balance | 28,814 | 20,142 |
Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (7,171) | |
Ending balance | (10,018) | (7,171) |
Land And Improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 612 | 618 |
Merger impact (Note 3) | 396 | |
Other acquisitions | 10 | |
Additions | 41 | |
Disposals | (3) | |
Transfers | 10 | 63 |
Foreign currency translation | (9) | |
Depreciation | (33) | (19) |
Impairment | (6) | |
Impairment | (50) | |
Ending balance | 1,018 | 612 |
Land And Improvements [member] | Carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 868 | |
Ending balance | 1,294 | 868 |
Land And Improvements [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (256) | |
Ending balance | (276) | (256) |
Buildings and Improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 4,184 | 4,212 |
Merger impact (Note 3) | 2,695 | |
Other acquisitions | 31 | |
Additions | 61 | |
Disposals | (14) | |
Transfers | 30 | 71 |
Foreign currency translation | (16) | |
Other adjustments | 44 | |
Depreciation | (195) | (83) |
Impairment | (776) | |
Impairment | (16) | |
Ending balance | 6,044 | 4,184 |
Buildings and Improvements [member] | Carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 4,837 | |
Ending balance | 7,617 | 4,837 |
Buildings and Improvements [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (653) | |
Ending balance | (1,573) | (653) |
Machinery And Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 6,744 | 6,859 |
Merger impact (Note 3) | 4,042 | |
Other acquisitions | 66 | |
Additions | 327 | 9 |
Disposals | (30) | |
Transfers | 538 | 521 |
Foreign currency translation | (15) | |
Other adjustments | (6) | 5 |
Depreciation | (1,032) | (487) |
Impairment | (752) | |
Impairment | (163) | |
Ending balance | 9,882 | 6,744 |
Machinery And Equipment [member] | Carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 12,000 | |
Ending balance | 16,806 | 12,000 |
Machinery And Equipment [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (5,256) | |
Ending balance | (6,924) | (5,256) |
Mine development costs [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 979 | 1,027 |
Additions | 42 | 88 |
Transfers | 18 | (21) |
Other adjustments | 10 | 15 |
Depreciation | (65) | (98) |
Impairment | (275) | |
Impairment | (32) | |
Ending balance | 709 | 979 |
Mine development costs [member] | Carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,985 | |
Ending balance | 1,954 | 1,985 |
Mine development costs [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1,006) | |
Ending balance | (1,245) | (1,006) |
Assets Under Construction [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 452 | 602 |
Merger impact (Note 3) | 326 | |
Additions | 975 | 528 |
Transfers | (596) | (634) |
Foreign currency translation | (7) | |
Other adjustments | (7) | |
Impairment | (44) | |
Ending balance | 1,143 | 452 |
Assets Under Construction [member] | Carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 452 | |
Ending balance | $ 1,143 | $ 452 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Depreciation of Property Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, property, plant and equipment | $ 1,325 | $ 687 |
Depreciation, property, plant and equipment | 1,371 | 687 |
Freight Transportation and Distribution [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, property, plant and equipment | 15 | |
Cost of Goods Sold [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, property, plant and equipment | 1,016 | 668 |
Selling Expenses [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, property, plant and equipment | 259 | |
General And Administrative Expense1 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, property, plant and equipment | 35 | |
Depreciation Expense Included in Income Statement [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, property, plant and equipment | 1,325 | 668 |
Inventory [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation, property, plant and equipment | $ 46 | $ 19 |
Property, Plant and Equipment_4
Property, Plant and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment of property, plant and equipment | $ (1,809,000,000) | |
New Brunswick [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Recoverable amount of asset or cash-generating unit | 50,000,000 | |
White Springs and Feed Plants [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Recoverable amount of asset or cash-generating unit | $ 96,000,000 | |
Reversal of impairment Losses | 0 | |
After tax discount rate | 8.00% | |
Potash [member] | New Brunswick [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment of property, plant and equipment | 1,809,000,000 | |
Impairment loss recognized in profit or loss, net of tax | $ 1,320,000,000 | |
Phosphate and Sulfate [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment of property, plant and equipment | $ 305,000,000 | |
Phosphate and Sulfate [member] | White Springs and Feed Plants [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment of property, plant and equipment | 305,000,000 | |
Impairment loss recognized in profit or loss, net of tax | $ 234,000,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Estimated Useful Lives Applied to Finite-Lived Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Bottom of range [member] | Customer relationships [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 6 years |
Bottom of range [member] | Technology [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 3 years |
Bottom of range [member] | Trade names [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 10 years |
Bottom of range [member] | Other [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 1 years |
Top of range [member] | Customer relationships [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 15 years |
Top of range [member] | Technology [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 7 years |
Top of range [member] | Trade names [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 20 years |
Top of range [member] | Other [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 30 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Reconciliation of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | $ 97 | $ 97 |
Merger impact (Note 3) | 11,185 | |
Other acquisitions (Note 3) | 197 | |
Foreign currency translation | (48) | |
Ending Balance | 11,431 | 97 |
Goodwill [member] | Carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 104 | |
Ending Balance | 11,438 | 104 |
Goodwill [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | (7) | |
Ending Balance | (7) | (7) |
Customer relationships [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Merger impact (Note 3) | 1,708 | |
Other acquisitions (Note 3) | 1 | |
Foreign currency translation | (20) | |
Amortization | (135) | |
Ending Balance | 1,554 | |
Customer relationships [member] | Carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Ending Balance | 1,691 | |
Customer relationships [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Ending Balance | (137) | |
Technology [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Merger impact (Note 3) | 44 | |
Additions | 79 | |
Foreign currency translation | 1 | |
Amortization | (7) | |
Ending Balance | 117 | |
Technology [member] | Carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Ending Balance | 124 | |
Technology [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Ending Balance | (7) | |
Trade names [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Merger impact (Note 3) | 122 | |
Foreign currency translation | (4) | |
Amortization | (28) | |
Ending Balance | 90 | |
Trade names [member] | Carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Ending Balance | 118 | |
Trade names [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Ending Balance | (28) | |
Other [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 69 | 83 |
Merger impact (Note 3) | 474 | |
Other acquisitions (Note 3) | 7 | |
Additions | 19 | 1 |
Disposals | (27) | |
Foreign currency translation | (6) | |
Amortization | (87) | (15) |
Ending Balance | 449 | 69 |
Other [member] | Carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 123 | |
Ending Balance | 586 | 123 |
Other [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | (54) | |
Ending Balance | (137) | (54) |
Intangible assets other than goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 69 | 83 |
Merger impact (Note 3) | 2,348 | |
Other acquisitions (Note 3) | 8 | |
Additions | 98 | 1 |
Disposals | (27) | |
Foreign currency translation | (29) | |
Amortization | (257) | (15) |
Ending Balance | 2,210 | 69 |
Intangible assets other than goodwill [member] | Carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | 123 | |
Ending Balance | 2,519 | 123 |
Intangible assets other than goodwill [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning Balance | (54) | |
Ending Balance | $ (309) | $ (54) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Reconciliation of Intangible Assets (Parenthetical) (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)yr | Dec. 31, 2017USD ($) | |
Selling Expenses [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Amortization | $ | $ 225 | $ 0 |
Customer relationships [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Remaining amortization period of intangible assets | yr | 8 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Goodwill by Groups of Cash Generating Unit (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of goodwill allocated to CGUs [line items] | ||
Goodwill | $ 11,431 | $ 97 |
Cash-generating units [member] | Retail [member] | ||
Disclosure of goodwill allocated to CGUs [line items] | ||
Goodwill | 6,882 | |
Cash-generating units [member] | Potash [member] | ||
Disclosure of goodwill allocated to CGUs [line items] | ||
Goodwill | 154 | |
Cash-generating units [member] | Nitrogen [member] | ||
Disclosure of goodwill allocated to CGUs [line items] | ||
Goodwill | 4,097 | $ 97 |
Cash-generating units [member] | Phosphate and Sulfate [member] | ||
Disclosure of goodwill allocated to CGUs [line items] | ||
Goodwill | $ 298 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Summary of Terminal Growth Rate and Curresponding Breakeven Discount Rate (Detail) - Cash-generating units [member] | Dec. 31, 2018 |
Retail [member] | |
Disclosure of goodwill allocated to CGUs [line items] | |
Terminal Growth Rate | 2.50% |
Breakeven Discount Rate | 8.30% |
Potash [member] | |
Disclosure of goodwill allocated to CGUs [line items] | |
Terminal Growth Rate | 2.50% |
Breakeven Discount Rate | 13.10% |
Nitrogen [member] | |
Disclosure of goodwill allocated to CGUs [line items] | |
Terminal Growth Rate | 2.00% |
Breakeven Discount Rate | 12.80% |
Phosphate and Sulfate [member] | |
Disclosure of goodwill allocated to CGUs [line items] | |
Terminal Growth Rate | 2.00% |
Breakeven Discount Rate | 11.20% |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets - Summary of Key Assumptions, Change In Retail Segment Recoverable Amount (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Discount rate plus 0.1 [member] | |
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | |
Percentage Point Change | 0.10% |
Change in Recoverable Amount | $ (365) |
Discount rate minus 0.1 [member] | |
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | |
Percentage Point Change | (0.10%) |
Change in Recoverable Amount | $ 381 |
Terminal growth rate plus 0.1 [member] | |
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | |
Percentage Point Change | 0.10% |
Change in Recoverable Amount | $ 320 |
Terminal growth rate minus 0.1 [member] | |
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | |
Percentage Point Change | (0.10%) |
Change in Recoverable Amount | $ (307) |
Forecasted EBITDA Over Forecast Period plus 5.0% [Member] | |
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | |
Percentage Point Change | 5.00% |
Change in Recoverable Amount | $ 1,488 |
Forecasted EBITDA Over Forecast Period minus 5.0% [Member] | |
Disclosure Of Key Assumptions Used In Calculating Recoverable Amount [line items] | |
Percentage Point Change | (5.00%) |
Change in Recoverable Amount | $ (1,477) |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Miscellaneous non-current assets [abstract] | ||
Deferred income tax assets (Note 9) | $ 216 | $ 18 |
Ammonia catalysts - net of accumulated amortization of $79 (2017 - $61) | 81 | 42 |
Long-term income tax receivable (Note 9) | 36 | 64 |
Accrued pension benefit asset (Note 28) | 27 | 24 |
Other - net of accumulated amortization of $38 (2017 - $35) | 165 | 98 |
Other assets | $ 525 | $ 246 |
Other Assets - Summary of Oth_2
Other Assets - Summary of Other Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Miscellaneous non-current assets [abstract] | ||
Ammonia catalyst | $ 79 | $ 61 |
Other | $ 38 | $ 35 |
Payables and Accrued Charges -
Payables and Accrued Charges - Summary of Payables and Accrued Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other payables [abstract] | ||
Trade accounts | $ 3,053 | $ 255 |
Customer prepayments | 1,625 | |
Dividends | 526 | 84 |
Accrued compensation | 425 | 98 |
Current portion of asset retirement obligations and accrued environmental costs (Note 20) | 156 | 72 |
Accrued interest | 105 | 33 |
Current portion of share-based compensation (Note 29) | 87 | 13 |
Current portion of derivatives | 45 | 29 |
Income taxes (Note 9) | 47 | 16 |
Current portion of pension and other post-retirement benefits (Note 28) | 13 | 35 |
Other payables and other accrued charges | 621 | 201 |
Total | $ 6,703 | $ 836 |
Asset Retirement Obligations _3
Asset Retirement Obligations and Accrued Environmental Costs - Summary of Pre-Tax Risk-Free Discount Rate and Expected Cash Flow Payments for Asset Retirement Obligations and Accrued Environmental Costs (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Potash sites [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Cash Flow Payments (years) | n/a |
Phosphate sites [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Cash Flow Payments (years) | 80 years |
Asset retirement obligations [member] | Potash sites [member] | Bottom of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Risk-Free Rate | 3.64% |
Cash Flow Payments (years) | 52 |
Asset retirement obligations [member] | Potash sites [member] | Top of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Risk-Free Rate | 5.00% |
Cash Flow Payments (years) | 430 |
Asset retirement obligations [member] | Phosphate sites [member] | Bottom of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Risk-Free Rate | 1.60% |
Cash Flow Payments (years) | 1 |
Asset retirement obligations [member] | Phosphate sites [member] | Top of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Risk-Free Rate | 5.43% |
Cash Flow Payments (years) | 483 |
Asset retirement obligations [member] | Other sites [member] | Bottom of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Risk-Free Rate | 1.22% |
Cash Flow Payments (years) | 1 |
Asset retirement obligations [member] | Other sites [member] | Top of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Risk-Free Rate | 6.50% |
Cash Flow Payments (years) | 49 |
Accrued environmental costs [member] | Phosphate sites [member] | Bottom of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Risk-Free Rate | 2.08% |
Cash Flow Payments (years) | 1 |
Accrued environmental costs [member] | Phosphate sites [member] | Top of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Risk-Free Rate | 4.27% |
Cash Flow Payments (years) | 30 |
Accrued environmental costs [member] | Other sites [member] | Bottom of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Risk-Free Rate | 2.05% |
Cash Flow Payments (years) | 1 |
Accrued environmental costs [member] | Other sites [member] | Top of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Risk-Free Rate | 4.27% |
Cash Flow Payments (years) | 30 |
Asset Retirement Obligations _4
Asset Retirement Obligations and Accrued Environmental Costs - Summary of Pre-Tax Risk-Free Discount Rate and Expected Cash Flow Payments for Asset Retirement Obligations and Accrued Environmental Costs (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Phosphate sites [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Cash flow payments | 80 years |
Asset Retirement Obligations _5
Asset Retirement Obligations and Accrued Environmental Costs - Summary of Sensitivity of Asset Retirement Obligations and Accrued Environmental Costs to Changes in Discount Rate on Recorded Liability (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Asset retirement obligations [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
+0.5% Discount Rate | $ (88) |
-0.5% Discount Rate | 88 |
Asset retirement obligations [member] | Potash sites [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Undiscounted Cash Flows | 675 |
Discounted Cash Flows | 130 |
Asset retirement obligations [member] | Phosphate sites [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Undiscounted Cash Flows | 1,636 |
Discounted Cash Flows | 1,125 |
Asset retirement obligations [member] | Other sites [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Undiscounted Cash Flows | 101 |
Discounted Cash Flows | 40 |
Accrued environmental costs [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
+0.5% Discount Rate | (12) |
-0.5% Discount Rate | 15 |
Accrued environmental costs [member] | Phosphate sites [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Undiscounted Cash Flows | 321 |
Discounted Cash Flows | 246 |
Accrued environmental costs [member] | Other sites [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Undiscounted Cash Flows | 318 |
Discounted Cash Flows | $ 288 |
Asset Retirement Obligations _6
Asset Retirement Obligations and Accrued Environmental Costs - Summary of Sensitivity of Asset Retirement Obligations and Accrued Environmental Costs to Changes in Discount Rate on Recorded Liability (Parenthetical) (Detail) - Undiscounted Cash Flow [member] - Potash [member] | 12 Months Ended |
Dec. 31, 2018 | |
Bottom of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Final decommissioning period | 90 years |
Top of range [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Final decommissioning period | 375 years |
Asset Retirement Obligations _7
Asset Retirement Obligations and Accrued Environmental Costs - Summary of Reconciliation of Asset Retirement, Environmental Restoration Obligations (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Other provisions beginning balance | $ 723 |
Merger impact 1 | 1,133 |
Recorded in earnings | 76 |
Capitalized to property, plant and equipment | 9 |
Settled during the year | (69) |
Foreign currency translation | (43) |
Other provisions ending balance | 1,829 |
Current liabilities | |
Payables and accrued charges (Note 19) | 156 |
Non-current liabilities | |
Asset retirement obligations and accrued environmental costs | 1,673 |
Asset retirement obligations [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Other provisions beginning balance | 702 |
Merger impact 1 | 608 |
Recorded in earnings | 64 |
Capitalized to property, plant and equipment | 9 |
Settled during the year | (57) |
Foreign currency translation | (31) |
Other provisions ending balance | 1,295 |
Current liabilities | |
Payables and accrued charges (Note 19) | 122 |
Non-current liabilities | |
Asset retirement obligations and accrued environmental costs | 1,173 |
Accrued environmental costs [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Other provisions beginning balance | 21 |
Merger impact 1 | 525 |
Recorded in earnings | 12 |
Settled during the year | (12) |
Foreign currency translation | (12) |
Other provisions ending balance | 534 |
Current liabilities | |
Payables and accrued charges (Note 19) | 34 |
Non-current liabilities | |
Asset retirement obligations and accrued environmental costs | $ 500 |
Asset Retirement Obligations _8
Asset Retirement Obligations and Accrued Environmental Costs - Summary of Reconciliation of Asset Retirement, Environmental Restoration Obligations (Parenthetical) (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Asset retirement obligations [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Contingent liabilities | $ 201 |
Accrued environmental costs [member] | |
Disclosure of asset retirement obligations and accrued environmental costs [line items] | |
Contingent liabilities | $ 376 |
Investments - Summary of Equity
Investments - Summary of Equity-Accounted Investees and Investments at FVTOCI (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Interests In Other Entities [line items] | ||
Carrying Amount | $ 692 | $ 30 |
Carrying Amount | $ 186 | $ 262 |
Profertil [member] | ||
Disclosure Of Interests In Other Entities [line items] | ||
Principal Activity | Nitrogen Producer | |
Principal Place of Business and Incorporation | Argentina | |
Proportion of Ownership Interest and Voting Rights Held | 50.00% | |
Carrying Amount | $ 192 | |
Canpotex [member] | ||
Disclosure Of Interests In Other Entities [line items] | ||
Principal Activity | Marketing & Logistics | |
Principal Place of Business and Incorporation | Canada | |
Proportion of Ownership Interest and Voting Rights Held | 50.00% | |
Sinofert [member] | ||
Disclosure Of Interests In Other Entities [line items] | ||
Principal Activity | Fertilizer Supplier & Distributor | |
Principal Place of Business and Incorporation | China/Bermuda | |
Proportion of Ownership Interest and Voting Rights Held | 22.00% | 22.00% |
Carrying Amount | $ 180 | $ 258 |
MOPCO [member] | ||
Disclosure Of Interests In Other Entities [line items] | ||
Principal Activity | Nitrogen Producer | |
Principal Place of Business and Incorporation | Egypt | |
Proportion of Ownership Interest and Voting Rights Held | 26.00% | |
Carrying Amount | $ 236 | |
Canpotex [member] | ||
Disclosure Of Interests In Other Entities [line items] | ||
Proportion of Ownership Interest and Voting Rights Held | 33.00% | |
Agrichem [member] | ||
Disclosure Of Interests In Other Entities [line items] | ||
Principal Activity | Fertilizer Producer & Marketer | |
Principal Place of Business and Incorporation | Brazil | |
Proportion of Ownership Interest and Voting Rights Held | 80.00% | |
Carrying Amount | $ 103 | |
Other associates and joint ventures [member] | ||
Disclosure Of Interests In Other Entities [line items] | ||
Carrying Amount | 161 | $ 30 |
Other [member] | ||
Disclosure Of Interests In Other Entities [line items] | ||
Carrying Amount | $ 6 | $ 4 |
Investments - Summary of Equi_2
Investments - Summary of Equity-Accounted Investees and Investments at FVTOCI (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Sinofert [member] | ||
Disclosure Of Interests In Other Entities [line items] | ||
Proportion of Ownership Interest and Voting Rights Held | 22.00% | 22.00% |
Investments - Summary of Aggreg
Investments - Summary of Aggregated Financial Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure Of Interests In Other Entities [line items] | |||
Net earnings | [1] | $ 3,573 | $ 327 |
Other comprehensive income | [1] | (302) | 96 |
Total comprehensive income | 3,271 | 423 | |
Associates [member] | |||
Disclosure Of Interests In Other Entities [line items] | |||
Net earnings | 24 | ||
Other comprehensive income | 0 | 0 | |
Total comprehensive income | 24 | ||
Joint ventures [member] | |||
Disclosure Of Interests In Other Entities [line items] | |||
Net earnings | 16 | 9 | |
Other comprehensive income | 0 | 0 | |
Total comprehensive income | $ 16 | $ 9 | |
[1] | All equity transactions were attributable to common shareholders. |
Short-Term Debt - Additional In
Short-Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | |||
Commercial paper authorized to issue | $ 4,500,000,000 | $ 2,500,000,000 | |
Undrawn short term debt | $ 300,000,000 | ||
unsecured revolving term credit facility | 4,500,000,000 | ||
Loan drawn for accounts receivable securitization program | 0 | ||
Other facilities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total other credit facilities | 520,000,000 | ||
Uncommitted revolving demand facility [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Undrawn short term debt | 500,000,000 | ||
Amount of borrowings replacement | 500,000,000 | ||
Accounts receivable securitization [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Undrawn short term debt | 500,000,000 | ||
Unsecured Line of Credit [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Amount of borrowings replacement | $ 75,000,000 |
Short-Term Debt - Summary of Sh
Short-Term Debt - Summary of Short-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [abstract] | ||
Commercial paper | $ 391 | $ 730 |
Other credit facilities | 238 | |
Total | $ 629 | $ 730 |
Short-Term Debt - Summary of _2
Short-Term Debt - Summary of Short-Term Debt (Parenthetical) (Detail) $ in Millions | Dec. 31, 2018USD ($) |
US dollar [member] | |
Disclosure of detailed information about borrowings [line items] | |
Unsecured short term debt | $ 153 |
Euro [member] | |
Disclosure of detailed information about borrowings [line items] | |
Unsecured short term debt | 22 |
Other Currency denominated [member] | |
Disclosure of detailed information about borrowings [line items] | |
Unsecured short term debt | $ 63 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 8,205 | $ 3,750 |
Add net unamortized fair value adjustments | 444 | |
Less net unamortized debt issue costs | (55) | (43) |
Borrowings after net unamortized fair value adjustments and debt issuance costs | 8,594 | 3,707 |
Less current maturities | (1,008) | |
Less current net unamortized fair value adjustments | (1) | |
Add current portion of net unamortized debt issue costs | 6 | 4 |
Current borrowings after current portion of net unamortized debt issuance costs | (1,003) | 4 |
Long-term debt | $ 7,591 | 3,711 |
Notes issued 2009 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 6.50% | |
Maturity | May 15, 2019 | |
Borrowings | $ 500 | 500 |
Notes issued 2009 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 4.875% | |
Maturity | March 30, 2020 | |
Borrowings | $ 500 | 500 |
Notes issued 2014 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 3.625% | |
Maturity | March 15, 2024 | |
Borrowings | $ 750 | 750 |
Notes issued 2015 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 3.00% | |
Maturity | April 1, 2025 | |
Borrowings | $ 500 | 500 |
Notes issued 2016 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 4.00% | |
Maturity | December 15, 2026 | |
Borrowings | $ 500 | 500 |
Notes issued 2006 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 5.875% | |
Maturity | December 1, 2036 | |
Borrowings | $ 500 | 500 |
Notes issued 2010 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 5.625% | |
Maturity | December 1, 2040 | |
Borrowings | $ 500 | $ 500 |
Debentures issued 2008 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 6.75% | |
Maturity | January 15, 2019 | |
Debentures issued | $ 500 | |
Debentures issued 2012 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 3.15% | |
Maturity | October 1, 2022 | |
Debentures issued | $ 500 | |
Debentures issued 2013 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 3.50% | |
Maturity | June 1, 2023 | |
Debentures issued | $ 500 | |
Debentures issued 2015 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 3.375% | |
Maturity | March 15, 2025 | |
Debentures issued | $ 550 | |
Debentures issued 1997 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 7.80% | |
Maturity | February 1, 2027 | |
Debentures issued | $ 125 | |
Debentures issued 2015 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 4.125% | |
Maturity | March 15, 2035 | |
Debentures issued | $ 450 | |
Debentures issued 2006 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 7.125% | |
Maturity | May 23, 2036 | |
Debentures issued | $ 300 | |
Debentures issued 2010 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 6.125% | |
Maturity | January 15, 2041 | |
Debentures issued | $ 500 | |
Debentures issued 2013 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 4.90% | |
Maturity | June 1, 2043 | |
Debentures issued | $ 500 | |
Debentures issued 2014 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Rate of Interest | 5.25% | |
Maturity | January 15, 2045 | |
Debentures issued | $ 500 | |
Other [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Other borrowings | $ 30 |
Long-Term Debt - Summary of L_2
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of detailed information about borrowings [abstract] | |
Sinking fund requirements | $ 0 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of detailed information about borrowings [line items] | |
unsecured revolving term credit facility | $ 4,500,000,000 |
Debt to capital ratio | 0.65% |
Nutrien Credit Facility [member] | |
Disclosure of detailed information about borrowings [line items] | |
Senior notes and debentures exchanged | $ 7,578,000,000 |
Gain or loss on the exchange | 0 |
Transaction costs from debt exchange | $ 19,000,000 |
Debentures due in 2027 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Interest rate on debentures not exchanged and remained outstanding | 7.80% |
Senior notes and debentures exchanged | $ 0 |
Unsecured revolving term credit facility [member] | Nutrien Ltd. [member] | |
Disclosure of detailed information about borrowings [line items] | |
unsecured revolving term credit facility | 3,500,000,000 |
Multi-jurisdictional unsecured revolving credit facility [member] | Nutrien Ltd. [member] | |
Disclosure of detailed information about borrowings [line items] | |
unsecured revolving term credit facility | 2,500,000,000 |
Nutrien Credit Facility [member] | Nutrien Ltd. [member] | |
Disclosure of detailed information about borrowings [line items] | |
unsecured revolving term credit facility | $ 4,500,000,000 |
Long-Term Debt - Summary of Cre
Long-Term Debt - Summary of Credit Facility (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings outstanding | $ 0 | $ 0 |
Commercial paper outstanding, backstopped by the credit facility (Note 22) | 391 | 730 |
Credit facility [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Credit Facility | $ 250 | |
Maturity | May 31, 2020 | |
Borrowings outstanding | $ 0 | |
Credit facility due 2023 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Credit Facility | $ 4,500 | |
Maturity | April 10, 2023 | |
Borrowings outstanding | $ 0 | |
Credit facility due 2021 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Credit Facility | $ 3,250 | |
Maturity | May 31, 2021 | |
Borrowings outstanding | $ 0 |
Long-Term Debt - Summary of C_2
Long-Term Debt - Summary of Credit Facility (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Credit facility [member] | |
Disclosure of detailed information about borrowings [line items] | |
Extension request period | 5 years |
Share Capital - Summary of Shar
Share Capital - Summary of Shares Issued (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | |
Disclosure of classes of share capital [line items] | ||
Beginning Balance,(Post-Merger) | $ | $ 1,806 | |
Ending Balance | $ | $ 16,740 | $ 1,806 |
Potash Corp [member] | Post- Merger [member] | ||
Disclosure of classes of share capital [line items] | ||
Conversion ratio | 0.40 | |
Shares converted to Nutrien shares | 6,868,262 | |
Agrium Inc [member] | Post- Merger [member] | ||
Disclosure of classes of share capital [line items] | ||
Conversion ratio | 2.23 | |
Shares converted to Nutrien shares | 3,079,321 | |
Share Capital [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning Balance,(Post-Merger) | $ | $ 17,704 | |
Issued under option plans and share-settled plans | $ | 34 | |
Repurchased | $ | (998) | |
Ending Balance | $ | $ 16,740 | $ 17,704 |
Share Capital [member] | Post- Merger [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning Balance | 644,197,473 | |
Issued under option plans and share-settled plans | 670,201 | |
Repurchased | (36,332,197) | |
Ending Balance | 608,535,477 | 644,197,473 |
Fractional shares cancelled | (1,399) | |
Share Capital [member] | Potash Corp [member] | ||
Disclosure of classes of share capital [line items] | ||
Shares converted to Nutrien shares | $ | $ 1,806 | |
Share Capital [member] | Potash Corp [member] | Pre- Merger [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning Balance | 840,223,041 | |
Ending Balance | 840,223,041 | |
Conversion ratio | 0.40 | |
Share Capital [member] | Potash Corp [member] | Post- Merger [member] | ||
Disclosure of classes of share capital [line items] | ||
Shares converted to Nutrien shares | 336,089,216 | |
Share Capital [member] | Agrium Inc [member] | ||
Disclosure of classes of share capital [line items] | ||
Shares converted to Nutrien shares | $ | $ 15,898 | |
Share Capital [member] | Agrium Inc [member] | Pre- Merger [member] | ||
Disclosure of classes of share capital [line items] | ||
Beginning Balance | 138,165,765 | |
Ending Balance | 138,165,765 | |
Conversion ratio | 2.23 | |
Share Capital [member] | Agrium Inc [member] | Post- Merger [member] | ||
Disclosure of classes of share capital [line items] | ||
Shares converted to Nutrien shares | 308,109,656 |
Share Capital - Summary of Sh_2
Share Capital - Summary of Shares Issued (Parenthetical) (Detail) | Dec. 31, 2018shares |
Disclosure of classes of share capital [abstract] | |
Fractional shares issued | 0 |
Share Capital - Additional Info
Share Capital - Additional Information (Detail) - USD ($) | Apr. 18, 2019 | Feb. 20, 2019 | Jan. 17, 2019 | Dec. 14, 2018 | Feb. 20, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Disclosure of classes of share capital [line items] | |||||||||||||
Number of shares repurchased for cancellation | 36,332,197 | ||||||||||||
Average cost shares repurchased for cancellation | $ 50.97 | ||||||||||||
Dividend declared per share | $ 0.43 | $ 0.40 | $ 0.40 | $ 0.40 | $ 1,273,000,000 | [1] | $ 335,000,000 | ||||||
Dividend declared per share | $ 0.43 | ||||||||||||
Dividend declared [member] | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Declared dividends paid subsequent to year end. | $ 0.43 | ||||||||||||
Share repurchase program [member] | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Maximum percentage of outstanding common shares to be repurchased | 8.00% | 5.00% | |||||||||||
Period of share repurchase program | 1 year | ||||||||||||
Major ordinary share transactions [member] | |||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||
Maximum percentage of outstanding common shares to be repurchased | 5.00% | ||||||||||||
Number of shares repurchased for cancellation | 5,933,135 | ||||||||||||
Payment for common shares repurchased for cancellation | $ 297,000,000 | ||||||||||||
Average cost shares repurchased for cancellation | $ 50.10 | ||||||||||||
[1] | All equity transactions were attributable to common shareholders. |
Share Capital - Summary of Sh_3
Share Capital - Summary of Share Repurchases (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)$ / sharesshares | ||
Disclosure of Share Repurchases [line items] | ||
Common shares repurchased for cancellation | shares | 36,332,197 | |
Average price per share | $ / shares | $ 50.97 | |
Shares repurchased | $ 1,852 | [1] |
Share Capital [member] | ||
Disclosure of Share Repurchases [line items] | ||
Shares repurchased | 998 | |
Contributed Surplus [member] | ||
Disclosure of Share Repurchases [line items] | ||
Shares repurchased | 23 | |
Retained Earnings [member] | ||
Disclosure of Share Repurchases [line items] | ||
Shares repurchased | $ 831 | |
[1] | All equity transactions were attributable to common shareholders. |
Capital Management - Additional
Capital Management - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of objectives, policies and processes for managing capital [line items] | |
Senior notes and debentures exchanged | $ 8,175 |
Bottom of range [member] | |
Disclosure of objectives, policies and processes for managing capital [line items] | |
Potential percentage of free cash flow targeted to be paid out | 40.00% |
Top of range [member] | |
Disclosure of objectives, policies and processes for managing capital [line items] | |
Potential percentage of free cash flow targeted to be paid out | 60.00% |
Common shares, debt and other securities authorized for issuance | $ 11,000 |
Capital Management - Schedule o
Capital Management - Schedule of Adjusted Net Debt, Adjusted Shareholders' Equity and Adjusted Capital (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | ||||
Short-term debt | $ 629 | $ 730 | ||
Current portion of long-term debt | 1,003 | |||
Long-term debt | 7,591 | 3,711 | ||
Total debt | 9,223 | 4,441 | ||
Cash and cash equivalents | (2,314) | (116) | $ (32) | |
Net debt | 6,909 | 4,325 | ||
Unamortized fair value adjustments | (444) | |||
Adjusted net debt | 6,465 | 4,325 | ||
Total shareholders' equity | [1] | 24,425 | 8,303 | $ 8,199 |
Accumulated other comprehensive (income) loss | 291 | (25) | ||
Adjusted shareholders' equity | 24,716 | 8,278 | ||
Adjusted capital | $ 31,181 | $ 12,603 | ||
[1] | All equity transactions were attributable to common shareholders. |
Capital Management - Components
Capital Management - Components of Ratios (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | ||
Adjusted net debt to adjusted EBITDA | 1.64 | 4.28 |
Adjusted EBITDA to adjusted finance costs | 8.15 | 4.75 |
Adjusted net debt to adjusted capital | 20.70% | 34.30% |
Capital Management -Summary of
Capital Management -Summary of EBITDA, Adjusted EBITDA and Adjusted Finance Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | ||
Net (loss) earnings from continuing operations | $ (31) | $ 154 |
Finance costs | 538 | 238 |
Income taxes | (93) | (183) |
Depreciation and amortization | 1,592 | 692 |
EBITDA | 2,006 | 901 |
Impairment of property, plant and equipment | 1,809 | |
Merger and related costs | 170 | 84 |
Share-based compensation | 116 | 26 |
Defined Benefit Plans Curtailment Gain | (157) | |
Adjusted EBITDA | 3,944 | 1,011 |
Finance costs | 538 | 238 |
Unwinding of discount on asset retirement obligations | (51) | (17) |
Borrowing costs capitalized to property, plant and equipment | 12 | 11 |
Interest on net defined benefit pension and other post-retirement plan obligations | (15) | (19) |
Adjusted finance costs | $ 484 | $ 213 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)T | Dec. 31, 2017USD ($) | |
Disclosure of commitments [line items] | ||
Rental expenses for operating leases | $ | $ 301 | $ 87 |
Description of power purchase | The Carseland facility has a power co-generation agreement, expiring on December 31, 2026, for which the Company can purchase 60 megawatt-hours of power per hour. | |
Conda Phosphate operations [member] | ||
Disclosure of commitments [line items] | ||
Percentage of ammonia supplies | 100.00% | |
Purchase of mono ammonium phosphate | 100.00% | |
Estimated mono ammonium phosphate production | T | 330,000 | |
Profertil [member] | ||
Disclosure of commitments [line items] | ||
Percentage of gas requirements | 100.00% | |
YPF S.A. [member] | ||
Disclosure of commitments [line items] | ||
Percentage of gas supplies | 70.00% |
Commitments - Summary of Minimu
Commitments - Summary of Minimum Future Commitments Under Contractual Agreements (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Disclosure of commitments [line items] | |
Operating Leases | $ 1,087 |
Long-term debt, principal and estimated interest | 12,718 |
Purchase Commitments | 3,396 |
Capital Commitments | 57 |
Other Commitments | 318 |
Total | 17,576 |
Not later than one year [member] | |
Disclosure of commitments [line items] | |
Operating Leases | 216 |
Long-term debt, principal and estimated interest | 1,341 |
Purchase Commitments | 1,364 |
Capital Commitments | 37 |
Other Commitments | 114 |
Total | 3,072 |
Later than one year and not later than three years [member] | |
Disclosure of commitments [line items] | |
Operating Leases | 316 |
Long-term debt, principal and estimated interest | 1,112 |
Purchase Commitments | 949 |
Capital Commitments | 18 |
Other Commitments | 123 |
Total | 2,518 |
Later than three years and not later than five years [member] | |
Disclosure of commitments [line items] | |
Operating Leases | 212 |
Long-term debt, principal and estimated interest | 1,576 |
Purchase Commitments | 945 |
Capital Commitments | 2 |
Other Commitments | 61 |
Total | 2,796 |
Over 5 years [member] | |
Disclosure of commitments [line items] | |
Operating Leases | 343 |
Long-term debt, principal and estimated interest | 8,689 |
Purchase Commitments | 138 |
Other Commitments | 20 |
Total | $ 9,190 |
Pension and Other Post-Retire_3
Pension and Other Post-Retirement Benefits - Summary of Significant Assumptions Used to Determine Benefit Obligations and Expense (Detail) - Benefit obligations [member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate, % | 4.22% | 3.65% |
Rate of increase in compensation levels, % | 4.75% | 5.00% |
Life expectancy at 65 for a male member currently at age 65 | 20.6 | 20.7 |
Life expectancy at 65 for a female member currently at age 65 | 22.8 | 22.7 |
Average remaining service period of active employees (years) | 9.7 | 9 |
Average duration of the defined benefit obligations 4 (years) | 13.7 | 15.7 |
Other [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate, % | 4.17% | 3.65% |
Medical cost trend rate - year reaches ultimate trend rate | 2,037 | 2,037 |
Life expectancy at 65 for a male member currently at age 65 | 20.4 | 20 |
Life expectancy at 65 for a female member currently at age 65 | 22.8 | 22.4 |
Average remaining service period of active employees (years) | 5.1 | 12.2 |
Average duration of the defined benefit obligations 4 (years) | 15.1 | 19 |
Other [member] | Top of range [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical cost trend rate - assumed, % | 6.10% | 5.60% |
Other [member] | Bottom of range [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical cost trend rate - assumed, % | 4.50% | 4.50% |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefits - Summary of Significant Assumptions Used to Determine Benefit Obligations and Expense (Parenthetical) (Detail) - Benefit obligations [member] - Other [member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical cost trend rate - year reaches ultimate trend rate | 2,037 | 2,037 |
Top of range [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical cost trend rate - assumed, % | 6.10% | 5.60% |
Bottom of range [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Medical cost trend rate - assumed, % | 4.50% | 4.50% |
Pension and Other Post-Retire_5
Pension and Other Post-Retirement Benefits - Summary of Significant Assumptions, Change in Discount Rates has Greatest Potential Impact (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Benefit obligations, as reported | $ 1,797 | $ 1,831 |
Expense in income before income taxes, as reported | $ (87) | 75 |
Actuarial assumption of discount rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in Assumption, increase | 1.00% | |
Change in Assumption, decrease | 1.00% | |
Benefit obligations, 1.0 percentage point increase | $ (218) | (251) |
Benefit obligations, 1.0 percentage point decrease | 271 | 326 |
Expense in income before income taxes, 1.0 percentage point increase | (22) | (18) |
Expense in income before income taxes, 1.0 percentage point decrease | $ 24 | $ 20 |
Pension and Other Post-Retire_6
Pension and Other Post-Retirement Benefits - Summary of Movements in Pension and Other Post-Retirement Benefit Assets (Liabilities) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Beginning Balance | $ (451) | $ (452) |
Merger impact 1 | (142) | |
Current service cost for benefits earned during the year | (67) | |
Interest (expense) income | (15) | |
Past service cost, including curtailment gains and settlements 2 | 157 | |
Foreign exchange rate changes and other | 12 | |
Components of defined benefit expense recognized in earnings | 87 | (75) |
Changes in financial assumptions | 210 | |
Changes in demographic assumptions | 11 | |
Loss on plan assets (excluding amounts included in net interest) | (149) | |
Remeasurements of the net defined benefit liability recognized in OCI during the year | 72 | 66 |
Employer contributions | 53 | |
Cash flows | 53 | 10 |
Ending Balance | (381) | (451) |
Other assets [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Beginning Balance | 24 | |
Ending Balance | 27 | 24 |
Pension and other post retirement benefits liabilities [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Beginning Balance | (440) | |
Ending Balance | (395) | (440) |
Payables and accrued charges [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Beginning Balance | (35) | |
Ending Balance | (13) | (35) |
Present value of defined benefit obligation [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Beginning Balance | (1,831) | (1,698) |
Merger impact 1 | (347) | |
Current service cost for benefits earned during the year | (67) | |
Interest (expense) income | (77) | |
Past service cost, including curtailment gains and settlements 2 | 157 | |
Foreign exchange rate changes and other | 39 | |
Components of defined benefit expense recognized in earnings | 52 | (131) |
Changes in financial assumptions | 210 | |
Changes in demographic assumptions | 11 | |
Remeasurements of the net defined benefit liability recognized in OCI during the year | 221 | (57) |
Contributions by plan participants | (6) | |
Benefits paid | 114 | |
Cash flows | 108 | 55 |
Ending Balance | (1,797) | (1,831) |
Plan assets [member] | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Beginning Balance | 1,380 | 1,246 |
Merger impact 1 | 205 | |
Interest (expense) income | 62 | |
Foreign exchange rate changes and other | (27) | |
Components of defined benefit expense recognized in earnings | 35 | 56 |
Loss on plan assets (excluding amounts included in net interest) | (149) | |
Remeasurements of the net defined benefit liability recognized in OCI during the year | (149) | 123 |
Contributions by plan participants | 6 | |
Employer contributions | 53 | |
Benefits paid | (114) | |
Cash flows | (55) | (45) |
Ending Balance | $ 1,416 | $ 1,380 |
Pension and Other Post-Retire_7
Pension and Other Post-Retirement Benefits - Summary of Movements in Pension and Other Post-Retirement Benefit Assets (Liabilities) (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Net obligation | $ (381,000,000) | $ (451,000,000) | $ (452,000,000) |
Recognized a Merger-related Curtailment Gain | 157,000,000 | ||
Present value of defined benefit obligation [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net obligation | (1,797,000,000) | (1,831,000,000) | (1,698,000,000) |
Plan assets [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net obligation | 1,416,000,000 | 1,380,000,000 | $ 1,246,000,000 |
Pension [member] | Present value of defined benefit obligation [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Obligations arising from funded plans | (1,466,000,000) | (1,445,000,000) | |
Obligations arising from unfunded plans | (331,000,000) | (386,000,000) | |
Other [member] | Plan assets [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net obligation | $ 0 | $ 0 |
Pension and Other Post-Retire_8
Pension and Other Post-Retirement Benefits - Summary of Fair Value of Plan Assets of the Defined Benefit Pension Plans, by Asset Category (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | $ 60 | $ 46 |
Debt securities | 516 | 434 |
International balanced fund | 97 | 173 |
Other | (16) | (20) |
Total pension plan assets | 1,416 | 1,380 |
US Securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities and equity funds | 519 | 567 |
International Securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities and equity funds | 240 | 180 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 6 | 13 |
Debt securities | 187 | 190 |
Other | (25) | (20) |
Total pension plan assets | 797 | 899 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [member] | US Securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities and equity funds | 454 | 565 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [member] | International Securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities and equity funds | 175 | 151 |
Other (Level 2 & 3) [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and cash equivalents | 54 | 33 |
Debt securities | 329 | 244 |
International balanced fund | 97 | 173 |
Other | 9 | |
Total pension plan assets | 619 | 481 |
Other (Level 2 & 3) [member] | US Securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities and equity funds | 65 | 2 |
Other (Level 2 & 3) [member] | International Securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities and equity funds | $ 65 | $ 29 |
Pension and Other Post-Retire_9
Pension and Other Post-Retirement Benefits - Summary of Fair Value of Plan Assets of the Defined Benefit Pension Plans, by Asset Category (Parenthetical) (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
US Securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 52.00% | 62.00% |
International Securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 31.00% | 18.00% |
Mortgage- backed securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 17.00% | 20.00% |
Pension and Other Post-Retir_10
Pension and Other Post-Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [abstract] | ||
Expected contribution to all pension and post-retirement plans during remainder of 2019 | $ 97 | |
Total contributions recognized as expense under all defined contribution plans | $ 75 | $ 19 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Plan granted (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Maximum term | 10 years |
Stock Options [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Eligibility | Officers and eligible employees |
Granted | Annually |
Vesting period | 25% per year over four years |
Maximum term | 10 years |
Settlement | Shares |
Stock Options [member] | PotashCorp and Agrium [member] | Vesting Period One [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | 25% per year over four years |
Maximum term | 10 years |
Settlement | Shares |
Stock Options [member] | PotashCorp and Agrium [member] | Vesting Period Two [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | On third anniversary of grant date |
Performance share units (PSUs) [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Eligibility | Officers and other eligible employees |
Granted | Annually |
Vesting period | On third anniversary of grant date |
Maximum term | n/a |
Settlement | Cash |
Performance share units (PSUs) [member] | PotashCorp and Agrium [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | On third anniversary of grant date |
Maximum term | n/a |
Settlement | Cash / Shares |
Restricted share units (RSUs) [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Eligibility | Eligible employees |
Granted | Annually |
Vesting period | On third anniversary of grant date |
Maximum term | n/a |
Settlement | Cash |
Restricted share units (RSUs) [member] | PotashCorp and Agrium [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | On third anniversary of grant date |
Maximum term | n/a |
Settlement | Cash |
Stock appreciation right (SAR) [member] | PotashCorp and Agrium [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | 25% per year over four years |
Maximum term | 10 years |
Settlement | Cash |
Deferred Share Units [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Eligibility | Non-executive directors |
Granted | At the discretion of the Board of Directors |
Vesting period | Fully vest upon grant |
Maximum term | n/a |
Settlement | In cash on director's departure from Board of Directors |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Stock Option Plan granted (Parenthetical) (Detail) - Tranche | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Bottom of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting period | One year | ||
Top of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting period | Three years | ||
Potash Corp [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of tranches | 3 | 3 | |
Performance share units (PSUs) [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting period | On third anniversary of grant date | ||
Performance share units (PSUs) [member] | Agrium Inc [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share based compensation subject to performance cycle | 3 years | 3 years | |
Restricted share units (RSUs) [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting period | On third anniversary of grant date | ||
Restricted share units (RSUs) [member] | Agrium Inc [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share based compensation not subject to performance cycle | 3 years | 3 years |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Weighted average grant date fair value of stock options per unit | $ 9.71 |
Maximum term of options granted | 10 years |
Aggregate grant-date fair value of all options granted | $ 18,000,000 |
Average share price | $ 51.80 |
Deferred Share Units [member] | Directors [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Shares outstanding | 456,848 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Weighted Average Assumptions in Stock Options (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($)yr | |
2018 [member] | |
Disclosure Of Share Based Compensation Expense [line items] | |
Exercise price per option | $ | $ 44.50 |
Expected annual dividend yield | 3.58% |
Expected volatility | 29.00% |
Risk-free interest rate | 2.79% |
Average expected life of options | yr | 7.5 |
2017 [member] | |
Disclosure Of Share Based Compensation Expense [line items] | |
Exercise price per option | $ | $ 46.47 |
Expected annual dividend yield | 2.93% |
Expected volatility | 28.00% |
Risk-free interest rate | 1.95% |
Average expected life of options | yr | 6.2 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Stock Option Plans (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)shares$ / shares | Dec. 31, 2017USD ($)shares | |
Disclosure Of Number And Weighted Average Exercise Price Of Outstanding Share Options [line items] | ||
Number of shares subject to option, Outstanding, beginning of year | 17,170,654 | 19,470,014 |
Number of shares subject to option, Granted | 1,482,829 | |
Number of shares subject to option, Exercised | (22,100) | |
Number of shares subject to option, Forfeited or cancelled | (1,221,314) | |
Number of shares subject to option, Expired | (2,538,775) | |
Number of shares subject to option, Outstanding, end of year | 9,044,237 | 17,170,654 |
Weighted average exercise price, Balance - beginning of year | $ | $ 32.24 | $ 31.15 |
Weighted average exercise price, Granted | $ | 18.71 | |
Weighted average exercise price, Exercised | $ | 17.78 | |
Weighted average exercise price, Forfeited or cancelled | $ | 34.55 | |
Weighted average exercise price, Expired | $ | 20.06 | |
Weighted average exercise price, Outstanding, end of year | $ | $ 58.41 | $ 32.24 |
Post- Merger [member] | ||
Disclosure Of Number And Weighted Average Exercise Price Of Outstanding Share Options [line items] | ||
Number of shares subject to option, Outstanding, beginning of year | 9,947,583 | |
Number of shares subject to option, Granted | 1,875,162 | |
Number of shares subject to option, Exercised | (647,331) | |
Number of shares subject to option, Forfeited or cancelled | (1,793,077) | |
Number of shares subject to option, Expired | (338,100) | |
Number of shares subject to option, Outstanding, end of year | 9,044,237 | 9,947,583 |
Weighted average exercise price, Balance - beginning of year | $ | $ 69.54 | |
Weighted average exercise price, Granted | $ | 44.50 | |
Weighted average exercise price, Exercised | $ | 42.86 | |
Weighted average exercise price, Forfeited or cancelled | $ | 82.84 | |
Weighted average exercise price, Expired | $ | 154.94 | |
Weighted average exercise price, Outstanding, end of year | $ | $ 58.41 | $ 69.54 |
Potash Corp [member] | ||
Disclosure Of Number And Weighted Average Exercise Price Of Outstanding Share Options [line items] | ||
Number of shares subject to option, Outstanding, beginning of year | 19,470,014 | |
Weighted average exercise price, Balance - beginning of year | $ | $ 31.15 | |
Potash Corp [member] | Pre- Merger [member] | ||
Disclosure Of Number And Weighted Average Exercise Price Of Outstanding Share Options [line items] | ||
Number of shares subject to option, Outstanding, beginning of year | 17,170,654 | |
Number of shares subject to option, Outstanding, end of year | 17,170,654 | |
Weighted average exercise price, Balance - beginning of year | $ | $ 32.24 | |
Weighted average exercise price, Outstanding, end of year | $ | $ 32.24 | |
Potash Corp [member] | Post- Merger [member] | ||
Disclosure Of Number And Weighted Average Exercise Price Of Outstanding Share Options [line items] | ||
Number of shares converted to Nutrien shares | 6,868,262 | |
Shares converted to Nutrien shares | $ / shares | $ 80.60 | |
Agrium Inc [member] | Pre- Merger [member] | ||
Disclosure Of Number And Weighted Average Exercise Price Of Outstanding Share Options [line items] | ||
Number of shares subject to option, Outstanding, beginning of year | 1,380,868 | |
Number of shares subject to option, Outstanding, end of year | 1,380,868 | |
Weighted average exercise price, Balance - beginning of year | $ | $ 100.08 | |
Weighted average exercise price, Outstanding, end of year | $ | $ 100.08 | |
Agrium Inc [member] | Post- Merger [member] | ||
Disclosure Of Number And Weighted Average Exercise Price Of Outstanding Share Options [line items] | ||
Number of shares converted to Nutrien shares | 3,079,321 | |
Shares converted to Nutrien shares | $ / shares | $ 44.88 |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary of Stock Option Plans (Parenthetical) (Detail) - Post- Merger [member] | Dec. 31, 2018 |
Potash Corp [member] | |
Disclosure Of Number And Weighted Average Exercise Price Of Outstanding Share Options [line items] | |
Conversion ratio | 0.40 |
Agrium Inc [member] | |
Disclosure Of Number And Weighted Average Exercise Price Of Outstanding Share Options [line items] | |
Conversion ratio | 2.23 |
Share-Based Compensation - Su_6
Share-Based Compensation - Summary of Stock Options Outstanding (Detail) | Dec. 31, 2018USD ($)yr | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Options Outstanding, Number | 9,044,237 | 17,170,654 | 19,470,014 |
Options Outstanding, Weighted Average Remaining Life in Years | yr | 7 | ||
Options Outstanding, Weighted Average Exercise Price | $ 58.41 | $ 32.24 | $ 31.15 |
Options Exercisable, Number | 5,492,601 | ||
Options Exercisable, Weighted Average Exercise Price | $ 68.01 | ||
$37.00 to $41.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Options Outstanding, Number | 2,064,621 | ||
Options Outstanding, Weighted Average Remaining Life in Years | yr | 7 | ||
Options Outstanding, Weighted Average Exercise Price | $ 38.59 | ||
Options Exercisable, Number | 966,606 | ||
Options Exercisable, Weighted Average Exercise Price | $ 38.22 | ||
$44.00 to $52.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Options Outstanding, Number | 3,996,110 | ||
Options Outstanding, Weighted Average Remaining Life in Years | yr | 8 | ||
Options Outstanding, Weighted Average Exercise Price | $ 46.88 | ||
Options Exercisable, Number | 1,542,489 | ||
Options Exercisable, Weighted Average Exercise Price | $ 48.75 | ||
$64.00 to $75.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Options Outstanding, Number | 834,091 | ||
Options Outstanding, Weighted Average Remaining Life in Years | yr | 4 | ||
Options Outstanding, Weighted Average Exercise Price | $ 71.57 | ||
Options Exercisable, Number | 834,091 | ||
Options Exercisable, Weighted Average Exercise Price | $ 71.57 | ||
$80.00 to $88.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Options Outstanding, Number | 959,275 | ||
Options Outstanding, Weighted Average Remaining Life in Years | yr | 4 | ||
Options Outstanding, Weighted Average Exercise Price | $ 82.30 | ||
Options Exercisable, Number | 959,275 | ||
Options Exercisable, Weighted Average Exercise Price | $ 82.30 | ||
$91.00 to $110.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Options Outstanding, Number | 1,040,300 | ||
Options Outstanding, Weighted Average Remaining Life in Years | yr | 4 | ||
Options Outstanding, Weighted Average Exercise Price | $ 99.04 | ||
Options Exercisable, Number | 1,040,300 | ||
Options Exercisable, Weighted Average Exercise Price | $ 99.04 | ||
$130.00 to $131.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Options Outstanding, Number | 149,840 | ||
Options Outstanding, Weighted Average Remaining Life in Years | yr | 2 | ||
Options Outstanding, Weighted Average Exercise Price | $ 130.78 | ||
Options Exercisable, Number | 149,840 | ||
Options Exercisable, Weighted Average Exercise Price | $ 130.78 | ||
Bottom of range [member] | $37.00 to $41.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 37 | ||
Bottom of range [member] | $44.00 to $52.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 44 | ||
Bottom of range [member] | $64.00 to $75.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 64 | ||
Bottom of range [member] | $80.00 to $88.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 80 | ||
Bottom of range [member] | $91.00 to $110.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 91 | ||
Bottom of range [member] | $130.00 to $131.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 130 | ||
Top of range [member] | $37.00 to $41.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 41 | ||
Top of range [member] | $44.00 to $52.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 52 | ||
Top of range [member] | $64.00 to $75.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 75 | ||
Top of range [member] | $80.00 to $88.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 88 | ||
Top of range [member] | $91.00 to $110.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | 110 | ||
Top of range [member] | $130.00 to $131.00 [member] | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of Exercise Prices | $ 131 |
Share-Based Compensation - Su_7
Share-Based Compensation - Summary of Compensation Expense by Plan (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017shares | Dec. 31, 2016shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Units Granted | 1,482,829 | ||
Units Outstanding | 9,044,237 | 17,170,654 | 19,470,014 |
Stock Options [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Units Granted | 1,875,162 | ||
Units Outstanding | 9,044,237 | ||
Performance share units (PSUs) [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Units Granted | 619,799 | ||
Units Outstanding | 1,752,281 | ||
Restricted share units (RSUs) [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Units Granted | 437,474 | ||
Units Outstanding | 889,005 | ||
Director Deferred Share Units (DSUs) [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Units Granted | 61,062 | ||
Units Outstanding | 456,848 | ||
Stock Appreciation Rights (SARs) [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Units Outstanding | 2,388,402 |
Share-Based Compensation - Comp
Share-Based Compensation - Compensation Expense for all Employee and Director Share-based Compensation Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | $ 116 | $ 26 |
Stock Options [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | 23 | 7 |
Performance share units (PSUs) [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | 83 | 16 |
Restricted share units (RSUs) [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | 14 | |
Director Deferred Share Units (DSUs) [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | $ 3 | |
Stock Appreciation Rights (SARs) [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | $ (4) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Canpotex [member] | ||
Disclosure of transactions between related parties [line items] | ||
Sales | $ 1,657 | $ 988 |
Related Party Transactions - Co
Related Party Transactions - Compensation to Key Management Personnel (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | ||
Salaries and other short-term benefits | $ 19 | $ 14 |
Share-based compensation | 53 | 9 |
Post-employment benefits | 3 | 3 |
Termination benefits | 23 | |
Total | $ 98 | $ 26 |
Related Party Transactions - _2
Related Party Transactions - Compensation to Key Management Personnel (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018Person | |
Disclosure of transactions between related parties [abstract] | |
Number of key management personnel departed with termination benefits | 5 |
Accounting Policies, Estimate_2
Accounting Policies, Estimates and Judgments - Additional Information (Detail) $ in Billions | Jan. 01, 2019USD ($) |
IFRS 16 leases [member] | |
Disclosure of changes in accounting estimates [line items] | |
Approximate increase to property, plant and equipment and long-term debt | $ 1 |
Comparative Figures - Consolida
Comparative Figures - Consolidated Statement of Earnings (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of consolidated statement of earnings [line items] | |||
Cost of goods sold | $ (13,380) | $ (3,316) | |
Selling expenses | (2,337) | (29) | |
General and administrative expenses | (539) | (185) | |
Provincial mining and other taxes | (250) | (146) | |
Merger and related costs | (170) | (84) | |
Other expenses | (43) | (125) | |
NET EARNINGS | [1] | $ 3,573 | 327 |
Previously reported [member] | |||
Disclosure of consolidated statement of earnings [line items] | |||
Cost of goods sold | (3,335) | ||
Selling and administrative expenses | (214) | ||
Provincial mining and other taxes | (151) | ||
Merger and related costs | (84) | ||
Other expenses | (17) | ||
NET EARNINGS | (3,801) | ||
Reclassification Amounts [member] | |||
Disclosure of consolidated statement of earnings [line items] | |||
Cost of goods sold | 19 | ||
Selling and administrative expenses | 214 | ||
Selling expenses | (29) | ||
General and administrative expenses | (185) | ||
Provincial mining and other taxes | 5 | ||
Merger and related costs | 84 | ||
Other expenses | (108) | ||
Reported after Reclassifications [member] | |||
Disclosure of consolidated statement of earnings [line items] | |||
Cost of goods sold | (3,316) | ||
Selling expenses | (29) | ||
General and administrative expenses | (185) | ||
Provincial mining and other taxes | (146) | ||
Other expenses | (125) | ||
NET EARNINGS | $ (3,801) | ||
[1] | All equity transactions were attributable to common shareholders. |
Comparative Figures - Consoli_2
Comparative Figures - Consolidated Statement of Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of consolidated statement of comprehensive income [line items] | ||
Other | $ (8) | $ 20 |
Cash flow hedges | ||
Comprehensive income | $ 3,271 | 423 |
Previously reported [member] | ||
Disclosure of consolidated statement of comprehensive income [line items] | ||
Other | 3 | |
Cash flow hedges | ||
Net fair value loss during the period | (17) | |
Reclassification of net gain to earnings | 34 | |
Comprehensive income | 20 | |
Reclassification Amounts [member] | ||
Disclosure of consolidated statement of comprehensive income [line items] | ||
Other | 17 | |
Cash flow hedges | ||
Net fair value loss during the period | 17 | |
Reclassification of net gain to earnings | (34) | |
Reported after Reclassifications [member] | ||
Disclosure of consolidated statement of comprehensive income [line items] | ||
Other | 20 | |
Cash flow hedges | ||
Comprehensive income | $ 20 |
Comparative Figures - Consoli_3
Comparative Figures - Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of consolidated statement of cash flows [line items] | ||
Increase decrease in cash and cash equivalents | $ 2,198 | $ 84 |
Previously reported [member] | ||
Disclosure of consolidated statement of cash flows [line items] | ||
Pension and other post-retirement benefits | 64 | |
Net undistributed earnings of equity-accounted investees | (1) | |
Asset retirement obligations and accrued environmental costs | 7 | |
Other long-term liabilities and miscellaneous | 21 | |
Increase decrease in cash and cash equivalents | 91 | |
Reclassification Amounts [member] | ||
Disclosure of consolidated statement of cash flows [line items] | ||
Pension and other post-retirement benefits | (64) | |
Net undistributed earnings of equity-accounted investees | 1 | |
Asset retirement obligations and accrued environmental costs | (7) | |
Other long-term liabilities and miscellaneous | 70 | |
Reported after Reclassifications [member] | ||
Disclosure of consolidated statement of cash flows [line items] | ||
Other long-term liabilities and miscellaneous | 91 | |
Increase decrease in cash and cash equivalents | $ 91 |
Comparative Figures - Consoli_4
Comparative Figures - Consolidated Statements of Shareholders' Equity (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | ||
Disclosure of consolidated statements of shareholders equity [line items] | ||||
Equity | [1] | $ 8,303 | $ 8,199 | $ 24,425 |
Previously reported [member] | ||||
Disclosure of consolidated statements of shareholders equity [line items] | ||||
Other | (5) | (8) | ||
Net loss on derivatives designated as cash flow hedges | (43) | (60) | ||
Equity | (48) | (68) | ||
Reclassification Amounts [member] | ||||
Disclosure of consolidated statements of shareholders equity [line items] | ||||
Other | (41) | (58) | ||
Net loss on derivatives designated as cash flow hedges | 43 | 60 | ||
Reclassification Amounts [member] | Loss on Currency Translation of Foreign Operations [member] | ||||
Disclosure of consolidated statements of shareholders equity [line items] | ||||
Equity | (2) | (2) | ||
Reported after Reclassifications [member] | ||||
Disclosure of consolidated statements of shareholders equity [line items] | ||||
Other | (46) | (66) | ||
Equity | (48) | (68) | ||
Reported after Reclassifications [member] | Loss on Currency Translation of Foreign Operations [member] | ||||
Disclosure of consolidated statements of shareholders equity [line items] | ||||
Equity | $ (2) | $ (2) | ||
[1] | All equity transactions were attributable to common shareholders. |
Comparative Figures - Consoli_5
Comparative Figures - Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of consolidated balance sheet [line items] | ||
Intangible assets | $ 2,210 | $ 69 |
Goodwill | 11,431 | 97 |
Investments in equity-accounted investees | 692 | 30 |
Investments in subsidiaries, joint ventures and associates | 878 | 292 |
Short-term debt | 629 | 730 |
Short-term borrowings | 8,205 | 3,750 |
Payables and accrued charges | 6,703 | 836 |
Current portion of derivative instrument liabilities | 45 | 29 |
Other non-currentliabilities | $ 176 | 86 |
Previously reported [member] | ||
Disclosure of consolidated balance sheet [line items] | ||
Intangible assets | 166 | |
Intangible assets and goodwill | 166 | |
Investments in equity-accounted investees | 30 | |
Available-for-saleinvestments | 262 | |
Investments in subsidiaries, joint ventures and associates | 292 | |
Short-term debt and current portion of long-term debt | 730 | |
Short-term borrowings | 730 | |
Payables and accrued charges | 807 | |
Current portion of derivative instrument liabilities | 29 | |
Current accrued expenses and other current liabilities | 836 | |
Other non-currentliabilities | 51 | |
Derivative instrument liabilities | 35 | |
Non current derivative financial liabilities and other non current financial liabilities | 86 | |
Reclassification Amounts [member] | ||
Disclosure of consolidated balance sheet [line items] | ||
Intangible assets | (166) | |
Goodwill | 97 | |
Other intangible assets | 69 | |
Investments in equity-accounted investees | (30) | |
Available-for-saleinvestments | (262) | |
Investments | 292 | |
Short-term debt and current portion of long-term debt | (730) | |
Short-term debt | 730 | |
Payables and accrued charges | 29 | |
Current portion of derivative instrument liabilities | (29) | |
Other non-currentliabilities | 35 | |
Derivative instrument liabilities | (35) | |
Reported after Reclassifications [member] | ||
Disclosure of consolidated balance sheet [line items] | ||
Goodwill | 97 | |
Other intangible assets | 69 | |
Intangible assets and goodwill | 166 | |
Investments | 292 | |
Investments in subsidiaries, joint ventures and associates | 292 | |
Short-term debt | 730 | |
Short-term borrowings | 730 | |
Payables and accrued charges | 836 | |
Current accrued expenses and other current liabilities | 836 | |
Other non-currentliabilities | 86 | |
Non current derivative financial liabilities and other non current financial liabilities | $ 86 |