Nutrien (NTR) 6-K Nutrien Reports Record Earnings

Exhibit 99.3

NUTRIEN LTD.

INTERIM FINANCIAL STATEMENTS AND NOTES

AS AT AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2021

Unaudited In millions of US dollars except as otherwise noted  

Condensed Consolidated Financial Statements

Condensed Consolidated Statements of Earnings

		Three Months Ended June 30					Six Months Ended June 30
	Note		2021		2020			2021			2020
				Note 1						Note 1
SALES	2		9,763		8,431			14,421			12,629
Freight, transportation and distribution			222		237			433			449
Cost of goods sold			6,659		6,024			9,950			9,125
GROSS MARGIN			2,882		2,170			4,038			3,055
Selling expenses			865		763			1,538			1,405
General and administrative expenses			116		101			219			205
Provincial mining taxes			107		48			165			105
Share-based compensation expense (recovery)			38		12			61			(20	)
Other expenses	3		137		107			158			139
EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES			1,619		1,139			1,897			1,221
Finance costs			125		139			245			272
EARNINGS BEFORE INCOME TAXES			1,494		1,000			1,652			949
Income tax expense	4		381		235			406			219
NET EARNINGS			1,113		765			1,246			730
Attributable to
Equity holders of Nutrien			1,108		765			1,235			730
Non-controlling interest			5		-			11			-
NET EARNINGS			1,113		765			1,246			730
NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN (“EPS”)
Basic			1.94		1.34			2.17			1.28
Diluted			1.94		1.34			2.16			1.28
Weighted average shares outstanding for basic EPS			570,352,000		569,146,000			570,007,000			570,157,000
Weighted average shares outstanding for diluted EPS			571,972,000		569,146,000			571,453,000			570,157,000
Condensed Consolidated Statements of Comprehensive Income
		Three Months Ended June 30					Six Months Ended June 30
(Net of related income taxes)			2021		2020			2021			2020
NET EARNINGS			1,113		765			1,246			730
Other comprehensive income (loss)
Items that will not be reclassified to net earnings:
Net actuarial gain on defined benefit plans			-		-			-			3
Net fair value gain (loss) on investments			22		(2	)		70			(21	)
Items that have been or may be subsequently reclassified to net earnings:
Gain (loss) on currency translation of foreign operations			25		194			(5	)		(121	)
Other			14		9			20			(18	)
OTHER COMPREHENSIVE INCOME (LOSS)			61		201			85			(157	)
COMPREHENSIVE INCOME			1,174		966			1,331			573
Attributable to
Equity holders of Nutrien			1,170		966			1,321			573
Non-controlling interest			4		-			10			-
COMPREHENSIVE INCOME			1,174		966			1,331			573
(See Notes to the Condensed Consolidated Financial Statements)

23

Unaudited In millions of US dollars except as otherwise noted  

Condensed Consolidated Statements of Cash Flows

		Three Months Ended June 30				Six Months Ended June 30
	Note	2021		2020		2021		2020
OPERATING ACTIVITIES
Net earnings		1,113		765		1,246		730
Adjustments for:
Depreciation and amortization		485		517		965		990
Share-based compensation expense (recovery)		38		12		61		(20	)
Impairment of assets		1		-		5		-
(Recovery of) provision for deferred income tax		(20	)	84		(10	)	62
Cloud computing transition adjustment	3	36		-		36		-
Other long-term assets, liabilities and miscellaneous		64		(60	)	54		(100	)
Cash from operations before working capital changes		1,717		1,318		2,357		1,662
Changes in non-cash operating working capital:
Receivables		(2,443	)	(1,824	)	(2,835	)	(2,147	)
Inventories		1,848		2,174		63		746
Prepaid expenses and other current assets		310		247		998		1,013
Payables and accrued charges		534		(159	)	1,231		(44	)
CASH PROVIDED BY OPERATING ACTIVITIES		1,966		1,756		1,814		1,230
INVESTING ACTIVITIES
Additions to property, plant and equipment		(378	)	(298	)	(703	)	(661	)
Additions to intangible assets		(5	)	(36	)	(38	)	(68	)
Business acquisitions, net of cash acquired		(19	)	(116	)	(40	)	(173	)
Other		(29	)	42		(38	)	49
CASH USED IN INVESTING ACTIVITIES		(431	)	(408	)	(819	)	(853	)
FINANCING ACTIVITIES
Transaction costs related to debt		(7	)	(15	)	(7	)	(15	)
(Repayment of) proceeds from short-term debt, net		(104	)	(4,290	)	(3	)	204
Proceeds from long-term debt		8		1,500		8		1,506
Repayment of long-term debt		(5	)	(6	)	(5	)	(507	)
Repayment of principal portion of lease liabilities		(86	)	(70	)	(164	)	(134	)
Dividends paid to Nutrien’s shareholders	6	(263	)	(258	)	(518	)	(514	)
Repurchase of common shares	6	(1	)	-		(2	)	(160	)
Issuance of common shares		21		-		63		-
Other		(12	)	-		(12	)	-
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(449	)	(3,139	)	(640	)	380
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(4	)	24		(15	)	(13	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		1,082		(1,767	)	340		744
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD		712		3,182		1,454		671
CASH AND CASH EQUIVALENTS – END OF PERIOD		1,794		1,415		1,794		1,415
Cash and cash equivalents comprised of:
Cash		1,580		1,106		1,580		1,106
Short-term investments		214		309		214		309
		1,794		1,415		1,794		1,415
SUPPLEMENTAL CASH FLOWS INFORMATION
Interest paid		86		153		162		249
Income taxes paid		105		30		144		65
Total cash outflow for leases		111		96		208		188
(See Notes to the Condensed Consolidated Financial Statements)

24

Unaudited In millions of US dollars except as otherwise noted  

Condensed Consolidated Statements of Changes in Shareholders’ Equity

										Accumulated Other Comprehensive (Loss) Income (“AOCI”)
	Number of Common Shares			Share Capital			Contributed Surplus			Net Fair Value (Loss) Gain on Investments			Net Actuarial Gain on Defined Benefit Plans 1			Loss on Currency Translation of Foreign Operations			Other			Total AOCI			Retained Earnings			Equity Holders of Nutrien (Note 1)			Non- Controlling Interest (Note 1)			Total Equity
BALANCE – DECEMBER 31, 2019		572,942,809			15,771			248			(29	)		-			(204	)		(18	)		(251	)		7,101			22,869			38			22,907
Net earnings		-			-			-			-			-			-			-			-			730			730			-			730
Other comprehensive (loss) income		-			-			-			(21	)		3			(121	)		(18	)		(157	)		-			(157	)		-			(157	)
Shares repurchased (Note 6)		(3,832,580	)		(105	)		(55	)		-			-			-			-			-			-			(160	)		-			(160	)
Dividends declared		-			-			-			-			-			-			-			-			(514	)		(514	)		-			(514	)
Effect of share-based    compensation including    issuance of common shares		35,706			1			7			-			-			-			-			-			-			8			-			8
Transfer of net loss on    cash flow hedges		-			-			-			-			-			-			11			11			-			11			-			11
Transfer of net actuarial gain    on defined benefit plans		-			-			-			-			(3	)		-			-			(3	)		3			-			-			-
BALANCE – JUNE 30, 2020		569,145,935			15,667			200			(50	)		-			(325	)		(25	)		(400	)		7,320			22,787			38			22,825
BALANCE – DECEMBER 31, 2020		569,260,406			15,673			205			(36	)		-			(62	)		(21	)		(119	)		6,606			22,365			38			22,403
Net earnings		-			-			-			-			-			-			-			-			1,235			1,235			11			1,246
Other comprehensive income (loss)		-			-			-			70			-			(4	)		20			86			-			86			(1	)		85
Shares repurchased (Note 6)		(32,728	)		(1	)		(1	)		-			-			-			-			-			-			(2	)		-			(2	)
Dividends declared		-			-			-			-			-			-			-			-			(526	)		(526	)		-			(526	)
Non-controlling interest transactions		-			-			-			-			-			-			-			-			-			-			(12	)		(12	)
Effect of share-based    compensation including    issuance of common shares		-			74			(3	)		-			-			-			-			-			-			71			-			71
Transfer of net gain on    cash flow hedges		-			-			-			-			-			-			(11	)		(11	)		-			(11	)		-			(11	)
BALANCE – JUNE 30, 2021		569,227,678			15,746			201			34			-			(66	)		(12	)		(44	)		7,315			23,218			36			23,254

  1   Any amounts incurred during a period were transferred to retained earnings at each period-end. Therefore, no balance exists at the beginning or end of period.

(See Notes to the Condensed Consolidated Financial Statements)

25

Unaudited In millions of US dollars except as otherwise noted  

Condensed Consolidated Balance Sheets

			June 30						December 31
As at	Note		2021			2020			2020
							Note 1			Note 1
ASSETS
Current assets
Cash and cash equivalents				1,794			1,415			1,454
Receivables				6,683			5,736			3,626
Inventories				4,876			4,199			4,930
Prepaid expenses and other current assets				524			420			1,460
				13,877			11,770			11,470
Non-current assets
Property, plant and equipment				19,592			20,178			19,660
Goodwill				12,211			12,096			12,198
Other intangible assets				2,393			2,376			2,388
Investments				619			803			562
Other assets				664			578			914
TOTAL ASSETS				49,356			47,801			47,192
LIABILITIES
Current liabilities
Short-term debt				210			1,247			159
Current portion of long-term debt				32			-			14
Current portion of lease liabilities				276			228			249
Payables and accrued charges				9,367			7,306			8,058
				9,885			8,781			8,480
Non-current liabilities
Long-term debt				10,029			10,032			10,047
Lease liabilities				900			841			891
Deferred income tax liabilities		4		3,118			3,212			3,149
Pension and other post-retirement benefit liabilities				458			435			454
Asset retirement obligations and accrued environmental costs				1,559			1,575			1,597
Other non-current liabilities				153			100			171
TOTAL LIABILITIES				26,102			24,976			24,789
SHAREHOLDERS’ EQUITY
Share capital		6		15,746			15,667			15,673
Contributed surplus				201			200			205
Accumulated other comprehensive loss				(44	)		(400	)		(119	)
Retained earnings				7,315			7,320			6,606
Equity holders of Nutrien				23,218			22,787			22,365
Non-controlling interest				36			38			38
TOTAL SHAREHOLDERS’ EQUITY				23,254			22,825			22,403
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY				49,356			47,801			47,192

  (See Notes to the Condensed Consolidated Financial Statements)

26

Unaudited In millions of US dollars except as otherwise noted  

Notes to the Condensed Consolidated Financial Statements

As at and for the Three and Six Months Ended June 30, 2021

NOTE 1  BASIS OF PRESENTATION

Nutrien Ltd. (collectively with its subsidiaries, known as “Nutrien”, “we”, “us”, “our” or “the Company”) is the world’s largest provider of crop inputs and services. Nutrien plays a critical role in helping growers around the globe increase food production in a sustainable manner.

These unaudited interim condensed consolidated financial statements (“interim financial statements”) are based on International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting”. The accounting policies and methods of computation used in preparing these interim financial statements are consistent with those used in the preparation of our 2020 annual consolidated financial statements except as disclosed in Note 3. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with our 2020 annual consolidated financial statements.

Certain immaterial 2020 figures have been reclassified in the condensed consolidated statements of earnings, condensed consolidated statements of changes in shareholders’ equity, condensed consolidated balance sheets and segment information.

In management’s opinion, the interim financial statements include all adjustments necessary to fairly present such information in all material respects. Interim results are not necessarily indicative of the results expected for any other interim period or the fiscal year.

We prepare our interim financial statements in accordance with IFRS, which requires us to make judgments, assumptions and estimates in applying accounting policies. We have assessed our accounting estimates and other matters that require the use of forecasted financial information for the impacts arising from the novel coronavirus (“COVID-19”) pandemic. The future assessment of these estimates, including expectations about the severity, duration and scope of the pandemic, could differ materially in future reporting periods. As a result of the COVID-19 pandemic, we incurred directly attributable and incremental COVID-19 related expenses in other expenses (Note 3).

These interim financial statements were authorized by the audit committee of the Board of Directors for issue on August 9, 2021.

NOTE 2  SEGMENT INFORMATION

The Company has four reportable operating segments: Nutrien Ag Solutions (“Retail”), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise, and it provides services directly to growers through a network of farm centers in North America, South America and Australia. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each produce.

27

Unaudited In millions of US dollars except as otherwise noted  

	Three Months Ended June 30, 2021
	Retail		Potash		Nitrogen			Phosphate		Corporate and Others			Eliminations			Consolidated
Sales   – third party		7,522		844		1,008			389		-			-			9,763
– intersegment		15		61		307			60		-			(443	)		-
Sales   – total		7,537		905		1,315			449		-			(443	)		9,763
Freight, transportation and distribution		-		88		136			46		-			(48	)		222
Net sales		7,537		817		1,179			403		-			(395	)		9,541
Cost of goods sold		5,679		317		763			319		-			(419	)		6,659
Gross margin		1,858		500		416			84		-			24			2,882
Selling expenses		863		2		8			1		(9	)		-			865
General and administrative expenses		41		3		3			3		66			-			116
Provincial mining taxes		-		107		-			-		-			-			107
Share-based compensation expense		-		-		-			-		38			-			38
Other expenses		34		11		6			3		83			-			137
Earnings (loss) before finance costs and income taxes		920		377		399			77		(178	)		24			1,619
Depreciation and amortization		169		116		155			35		10			-			485
EBITDA		1,089		493		554			112		(168	)		24			2,104
Integration and restructuring related costs		7		-		-			-		22			-			29
Share-based compensation expense		-		-		-			-		38			-			38
Impairment of assets		-		-		1			-		-			-			1
COVID-19 related expenses		-		-		-			-		9			-			9
Foreign exchange gain, net of related derivatives		-		-		-			-		(2	)		-			(2	)
Cloud computing transition adjustment		1		2		-			-		33			-			36
Adjusted EBITDA		1,097		495		555			112		(68	)		24			2,215
Assets – at June 30, 2021		21,784		12,107		10,266			1,454		4,414			(669	)		49,356
	Three Months Ended June 30, 2020
	Retail		Potash		Nitrogen			Phosphate		Corporate and Others			Eliminations			Consolidated
Sales   – third party		6,754		617		755			285		20			-			8,431
– intersegment		10		64		246			49		-			(369	)		-
Sales   – total		6,764		681		1,001			334		20			(369	)		8,431
Freight, transportation and distribution		-		93		148			57		-			(61	)		237
Net sales		6,764		588		853			277		20			(308	)		8,194
Cost of goods sold		5,137		310		645			249		18			(335	)		6,024
Gross margin		1,627		278		208			28		2			27			2,170
Selling expenses		764		1		5			1		(8	)		-			763
General and administrative expenses		30		1		2			3		65			-			101
Provincial mining taxes		-		46		1			-		1			-			48
Share-based compensation expense		-		-		-			-		12			-			12
Other expenses (income)		32		4		(11	)		3		79			-			107
Earnings (loss) before finance costs and income taxes		801		226		211			21		(147	)		27			1,139
Depreciation and amortization		163		109		172			56		17			-			517
EBITDA		964		335		383			77		(130	)		27			1,656
Integration and restructuring related costs		-		-		-			-		18			-			18
Share-based compensation expense		-		-		-			-		12			-			12
COVID-19 related expenses		-		-		-			-		17			-			17
Foreign exchange loss, net of related derivatives		-		-		-			-		18			-			18
Adjusted EBITDA		964		335		383			77		(65	)		27			1,721
Assets – at December 31, 2020 ¹		20,526		11,707		10,077			1,388		3,917			(423	)		47,192

1 In 2021, certain assets related to transportation, distribution and logistics were reclassified under Corporate and Others as these are centrally managed. Comparative figures have been restated to reflect this change. Depreciation expense related to these assets are allocated to the rest of the segments based on usage.

28

Unaudited In millions of US dollars except as otherwise noted  

	Six Months Ended June 30, 2021
	Retail		Potash		Nitrogen			Phosphate		Corporate and Others			Eliminations			Consolidated
Sales   – third party		10,482		1,475		1,703			761		-			-			14,421
– intersegment		27		151		467			132		-			(777	)		-
Sales   – total		10,509		1,626		2,170			893		-			(777	)		14,421
Freight, transportation and distribution		-		198		231			105		-			(101	)		433
Net sales		10,509		1,428		1,939			788		-			(676	)		13,988
Cost of goods sold		7,999		608		1,373			638		-			(668	)		9,950
Gross margin		2,510		820		566			150		-			(8	)		4,038
Selling expenses		1,530		5		15			3		(15	)		-			1,538
General and administrative expenses		80		5		5			5		124			-			219
Provincial mining taxes		-		165		-			-		-			-			165
Share-based compensation expense		-		-		-			-		61			-			61
Other expenses (income)		49		12		(20	)		6		111			-			158
Earnings (loss) before finance costs and income taxes		851		633		566			136		(281	)		(8	)		1,897
Depreciation and amortization		346		240		284			73		22			-			965
EBITDA		1,197		873		850			209		(259	)		(8	)		2,862
Integration and restructuring related costs		8		-		-			-		31			-			39
Share-based compensation expense		-		-		-			-		61			-			61
Impairment of assets		-		-		5			-		-			-			5
COVID-19 related expenses		-		-		-			-		18			-			18
Cloud computing transition adjustment		1		2		-			-		33			-			36
Adjusted EBITDA		1,206		875		855			209		(116	)		(8	)		3,021
Assets – at June 30, 2021		21,784		12,107		10,266			1,454		4,414			(669	)		49,356
	Six Months Ended June 30, 2020
	Retail		Potash		Nitrogen			Phosphate		Corporate and Others			Eliminations			Consolidated
Sales   – third party		9,406		1,164		1,401			611		47			-			12,629
– intersegment		19		128		378			106		-			(631	)		-
Sales   – total		9,425		1,292		1,779			717		47			(631	)		12,629
Freight, transportation and distribution		-		187		248			127		-			(113	)		449
Net sales		9,425		1,105		1,531			590		47			(518	)		12,180
Cost of goods sold		7,257		575		1,226			569		43			(545	)		9,125
Gross margin		2,168		530		305			21		4			27			3,055
Selling expenses		1,399		4		12			3		(13	)		-			1,405
General and administrative expenses		68		3		4			5		125			-			205
Provincial mining taxes		-		103		1			-		1			-			105
Share-based compensation recovery		-		-		-			-		(20	)		-			(20	)
Other expenses (income)		48		5		(9	)		9		86			-			139
Earnings (loss) before finance costs and    income taxes		653		415		297			4		(175	)		27			1,221
Depreciation and amortization		318		205		322			119		26			-			990
EBITDA		971		620		619			123		(149	)		27			2,211
Integration and restructuring related costs		-		-		-			-		28			-			28
Share-based compensation recovery		-		-		-			-		(20	)		-			(20	)
COVID-19 related expenses		-		-		-			-		19			-			19
Foreign exchange gain, net of    related derivatives		-		-		-			-		(9	)		-			(9	)
Adjusted EBITDA		971		620		619			123		(131	)		27			2,229
Assets – at December 31, 2020		20,526		11,707		10,077			1,388		3,917			(423	)		47,192

29

Unaudited In millions of US dollars except as otherwise noted  

Presented below is revenue from contracts with customers disaggregated by product line or geographic location for each reportable segment.

	Three Months Ended         June 30						Six Months Ended         June 30
	2021			2020			2021			2020
Retail sales by product line
Crop nutrients		3,045			2,527			4,061			3,312
Crop protection products		2,666			2,436			3,751			3,446
Seed		1,216			1,141			1,679			1,535
Merchandise		268			253			498			469
Nutrien Financial		59			40			84			56
Services and other		335			400			508			655
Nutrien Financial elimination 1		(52	)		(33	)		(72	)		(48	)
		7,537			6,764			10,509			9,425
Potash sales by geography
Manufactured product
North America		414			325			856			644
Offshore 2		491			356			770			648
		905			681			1,626			1,292
Nitrogen sales by product line
Manufactured product
Ammonia		405			291			593			447
Urea		372			304			646			566
Solutions, nitrates and sulfates		329			233			526			429
Other nitrogen and purchased products		209			173			405			337
		1,315			1,001			2,170			1,779
Phosphate sales by product line
Manufactured product
Fertilizer		258			185			530			406
Industrial and feed		133			117			259			237
Other phosphate and purchased products		58			32			104			74
		449			334			893			717

1 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.

2 Relates to Canpotex Limited (“Canpotex”) (Note 8).

NOTE 3  OTHER (INCOME) EXPENSES

	Three Months Ended         June 30						Six Months Ended         June 30
	2021			2020			2021			2020
Integration and restructuring related costs		29			18			39			28
Foreign exchange loss (gain), net of related derivatives		1			18			3			(13	)
Earnings of equity-accounted investees		(2	)		(13	)		(22	)		(23	)
Bad debt expense		13			21			15			27
COVID-19 related expenses		9			17			18			19
Impairment of assets		1			-			5			-
Cloud computing transition adjustment		36			-			36			-
Other expenses		50			46			64			101
		137			107			158			139

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

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Unaudited In millions of US dollars except as otherwise noted  

NOTE 4  INCOME TAXES

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

	Three Months Ended          June 30						Six Months Ended         June 30
	2021			2020			2021			2020
Income tax expense		381			235			406			219
Actual effective tax rate on earnings (%)		26			25			25			24
Actual effective tax rate including discrete items (%)		26			24			25			23
Discrete tax adjustments that impacted the tax rate		(3	)		(13	)		(3	)		(11	)

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

Income Tax Assets and Liabilities	Balance Sheet Location	As at June 30, 2021		As at December 31, 2020
Income tax assets
Current	Receivables		346		83
Non-current	Other assets		89		305
Deferred income tax assets	Other assets		221		242
Total income tax assets			656		630
Income tax liabilities
Current	Payables and accrued charges		335		48
Non-current	Other non-current liabilities		49		40
Deferred income tax liabilities	Deferred income tax liabilities		3,118		3,149
Total income tax liabilities			3,502		3,237

NOTE 5  FINANCIAL INSTRUMENTS

Fair Value

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

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

	June 30, 2021											December 31, 2020
Financial assets (liabilities) measured at	Carrying Amount			Level 1 1			Level 2 1			Level 3		Carrying Amount			Level 1 1			Level 2 1
Fair value on a recurring basis
Cash and cash equivalents		1,794			-			1,794			-		1,454			-			1,454
Derivative instrument assets		27			-			27			-		45			-			45
Other current financial assets - marketable securities 2		224			31			193			-		161			24			137
Investments at FVTOCI 3		233			223			-			10		153			153			-
Derivative instrument liabilities		(20	)		-			(20	)		-		(48	)		-			(48	)
Amortized cost
Current portion of long-term debt
Fixed and floating rate debt		(32	)		-			(32	)		-		(14	)		-			(14	)
Long-term debt
Notes and debentures		(9,988	)		(7,763	)		(3,721	)		-		(9,994	)		(3,801	)		(7,955	)
Fixed and floating rate debt		(41	)		-			(41	)		-		(53	)		-			(53	)

1 During the periods ended June 30, 2021 and December 31, 2020, there were no transfers between Level 1 and Level 2 for financial instruments measured at fair value on a recurring basis.

2 Marketable securities consist of equity and fixed income securities. We determine the fair value of equity securities based on the bid price of identical instruments in active markets. We value fixed income securities using quoted prices of instruments with similar terms and credit risk.

3 Investments at fair value through other comprehensive income (“FVTOCI”) is primarily comprised of shares in Sinofert Holdings Ltd.

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Unaudited In millions of US dollars except as otherwise noted  

NOTE 6  SHARE CAPITAL

Share repurchase programs

	Commencement Date		Expiry		Maximum Shares for Repurchase		Maximum Shares for Repurchase (%)		Number of Shares Repurchased
2019 Normal Course Issuer Bid		February 27, 2019		February 26, 2020		42,164,420		7		33,256,668
2020 Normal Course Issuer Bid		February 27, 2020		February 26, 2021		28,572,458		5		710,100
2021 Normal Course Issuer Bid 1		March 1, 2021		February 28, 2022		28,468,448		5		32,728
1 The 2021 normal course issuer bid will expire earlier than the date above if we acquire the maximum number of common shares allowable or otherwise decide not to make any further repurchases.

Purchases under the normal course issuer bids were, or may be, made through open market purchases at market prices as well as by other means permitted by applicable securities regulatory authorities, including private agreements.

The following table summarizes our share repurchase activities during the period:

	Three Months Ended         June 30				Six Months Ended         June 30
	2021		2020		2021		2020
Number of common shares repurchased for cancellation		17,750		-		32,728		3,832,580
Average price per share (US dollars)		52.88		-		52.90		41.96
Total cost		1		-		2		160

Dividends declared

We declared a dividend per share of $0.46 (2020 – $0.45) during the three months ended June 30, 2021, payable on July 16, 2021 to shareholders of record on June 30, 2021 and total dividends of $0.92 (2020 – $0.90) during the six months ended June 30, 2021.

NOTE 7  SEASONALITY

Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in spring and fall application seasons. Crop input inventories are normally accumulated leading up to each application season. The results of this seasonality have a corresponding effect on receivables from customers and rebates receivables, inventories, prepaid expenses and other current assets and trade payables. Our short-term debt also fluctuates during the year to meet working capital needs. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are typically concentrated in December and January and inventory prepayments paid to our suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

NOTE 8  RELATED PARTY TRANSACTIONS

We sell potash outside Canada and the United States exclusively through Canpotex. Canpotex sells potash to buyers in export markets pursuant to term and spot contracts at agreed upon prices. Our revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. Sales to Canpotex are shown in Note 2.

As at	June 30, 2021		December 31, 2020
Receivables from Canpotex		356		122

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