Nutrien (NTR) 6-K Nutrien Reports Second Quarter 2024 Results

Exhibit 99.3

NUTRIEN LTD.

INTERIM FINANCIAL STATEMENTS AND NOTES

AS AT AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2024

Unaudited

Condensed Consolidated Financial Statements

Condensed Consolidated Statements of Earnings

			Three Months Ended June 30						Six Months Ended June 30
(millions of US dollars, except as otherwise noted)	Note		2024			2023			2024			2023
SALES		2, 10		10,156			11,654			15,545			17,761
Freight, transportation and distribution				240			252			478			451
Cost of goods sold				7,004			8,236			10,618			12,231
GROSS MARGIN				2,912			3,166			4,449			5,079
Selling expenses				1,008			979			1,802			1,749
General and administrative expenses				158			157			312			302
Provincial mining taxes				68			104			136			223
Share-based compensation expense (recovery)				10			(64	)		16			(49	)
Impairment of assets		3		530			698			530			698
Foreign exchange loss, net of related derivatives		6		285			52			328			18
Other expenses		4		9			112			62			71
EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES				844			1,128			1,263			2,067
Finance costs				162			204			341			374
EARNINGS BEFORE INCOME TAXES				682			924			922			1,693
Income tax expense		5		290			476			365			669
NET EARNINGS				392			448			557			1,024
Attributable to
Equity holders of Nutrien				385			440			543			1,011
Non-controlling interest				7			8			14			13
NET EARNINGS				392			448			557			1,024
NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN (“EPS”)
Basic				0.78			0.89			1.10			2.03
Diluted				0.78			0.89			1.10			2.03
Weighted average shares outstanding for basic EPS				494,646,000			495,379,000			494,608,000			498,261,000
Weighted average shares outstanding for diluted EPS				494,915,000			495,932,000			494,851,000			499,059,000
Condensed Consolidated Statements of Comprehensive Income
			Three Months Ended June 30						Six Months Ended June 30
(millions of US dollars)			2024			2023			2024			2023
NET EARNINGS				392			448			557			1,024
Other comprehensive income (loss)
Items that will not be reclassified to net earnings:
Net actuarial loss on defined benefit plans				-			-			-			(3	)
Net fair value gain on investments				36			6			18			11
Items that have been or may be subsequently reclassified to net earnings:
Gain (loss) on currency translation of foreign operations				9			49			(57	)		50
Other				(1	)		13			(19	)		12
OTHER COMPREHENSIVE INCOME (LOSS)				44			68			(58	)		70
COMPREHENSIVE INCOME				436			516			499			1,094
Attributable to
Equity holders of Nutrien				429			508			486			1,081
Non-controlling interest				7			8			13			13
COMPREHENSIVE INCOME				436			516			499			1,094

(See Notes to the Condensed Consolidated Financial Statements)

25

Unaudited

Condensed Consolidated Statements of Cash Flows

			Three Months Ended June 30						Six Months Ended June 30
(millions of US dollars)	Note		2024			2023			2024			2023
						Note 1						Note 1
OPERATING ACTIVITIES
Net earnings				392			448			557			1,024
Adjustments for:
Depreciation and amortization				586			556			1,151			1,052
Share-based compensation expense (recovery)				10			(64	)		16			(49	)
Impairment of assets		3		530			698			530			698
Provision for deferred income tax				23			100			51			121
Net distributed (undistributed) earnings of equity-accounted investees				88			(23	)		38			140
Fair value adjustment to derivatives		6		187			38			186			32
Loss related to financial instruments in Argentina		4		15			92			34			92
Long-term income tax receivables and payables				(35	)		(18	)		8			(90	)
Other long-term assets, liabilities and miscellaneous				5			53			70			(14	)
Cash from operations before working capital changes				1,801			1,880			2,641			3,006
Changes in non-cash operating working capital:
Receivables				(2,555	)		(2,653	)		(2,812	)		(2,118	)
Inventories and prepaid expenses and other current assets				3,222			4,065			1,892			2,572
Payables and accrued charges				(661	)		(1,049	)		(401	)		(2,075	)
CASH PROVIDED BY OPERATING ACTIVITIES				1,807			2,243			1,320			1,385
INVESTING ACTIVITIES
Capital expenditures 1				(547	)		(791	)		(920	)		(1,256	)
Business acquisitions, net of cash acquired				(4	)		(5	)		(4	)		(116	)
Net proceeds from (purchase of) investments				3			(93	)		(15	)		(98	)
Purchase of investments				(107	)		-			(111	)		-
Net changes in non-cash working capital				5			(4	)		(85	)		(104	)
Other				36			35			27			22
CASH USED IN INVESTING ACTIVITIES				(614	)		(858	)		(1,108	)		(1,552	)
FINANCING ACTIVITIES
(Net repayment of) proceeds from debt				(1,215	)		(1,105	)		(289	)		768
Proceeds from debt				998			-			998			1,500
Repayment of debt				(75	)		(500	)		(89	)		(517	)
Repayment of principal portion of lease liabilities				(106	)		(100	)		(202	)		(187	)
Dividends paid to Nutrien’s shareholders				(266	)		(263	)		(527	)		(509	)
Repurchase of common shares				-			(150	)		-			(1,047	)
Issuance of common shares				8			3			9			31
Other				(28	)		(9	)		(36	)		(34	)
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES				(684	)		(2,124	)		(136	)		5
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS				(1	)		3			(13	)		(2	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS				508			(736	)		63			(164	)
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD				496			1,473			941			901
CASH AND CASH EQUIVALENTS – END OF PERIOD				1,004			737			1,004			737
Cash and cash equivalents is composed of:
Cash				953			724			953			724
Short-term investments				51			13			51			13
				1,004			737			1,004			737
SUPPLEMENTAL CASH FLOWS INFORMATION
Interest paid				216			227			348			325
Income taxes paid				83			270			133			1,589
Total cash outflow for leases				153			129			284			248

 1 Includes additions to property, plant and equipment, and intangible assets for the three months ended June 30, 2024 of $506 million and $41 million (2023 – $732 million and $59 million), respectively, and for the six months ended June 30, 2024 of $844 million and $76 million (2023 – $1,154 million and $102 million), respectively.

(See Notes to the Condensed Consolidated Financial Statements)

26

Unaudited

Condensed Consolidated Statements of Changes in Shareholders’ Equity

										Accumulated Other Comprehensive (Loss) Income (“AOCI”)
(millions of US dollars, except as otherwise noted)	Number of Common Shares			Share Capital			Contributed Surplus			(Loss) Gain on Currency Translation of Foreign Operations			Other			Total AOCI			Retained Earnings			Equity Holders of Nutrien			Non- Controlling Interest			Total Equity
BALANCE – DECEMBER 31, 2022		507,246,105			14,172			109			(374	)		(17	)		(391	)		11,928			25,818			45			25,863
Net earnings		-			-			-			-			-			-			1,011			1,011			13			1,024
Other comprehensive income		-			-			-			50			20			70			-			70			-			70
Shares repurchased		(13,378,189	)		(374	)		(26	)		-			-			-			(600	)		(1,000	)		-			(1,000	)
Dividends declared - $1.06/share		-			-			-			-			-			-			(527	)		(527	)		-			(527	)
Non-controlling interest transactions		-			-			-			-			-			-			-			-			(13	)		(13	)
Effect of share-based compensation including issuance of common shares		628,402			37			(3	)		-			-			-			-			34			-			34
Transfer of net gain on sale of investment		-			-			-			-			(14	)		(14	)		14			-			-			-
Transfer of net loss on cash flow hedges		-			-			-			-			9			9			-			9			-			9
Transfer of net actuarial loss on defined benefit plans		-			-			-			-			3			3			(3	)		-			-			-
Other		-			-			-			(2	)		-			(2	)		-			(2	)		-			(2	)
BALANCE – JUNE 30, 2023		494,496,318			13,835			80			(326	)		1			(325	)		11,823			25,413			45			25,458
BALANCE – DECEMBER 31, 2023		494,551,730			13,838			83			(286	)		(10	)		(296	)		11,531			25,156			45			25,201
Net earnings		-			-			-			-			-			-			543			543			14			557
Other comprehensive loss		-			-			-			(56	)		(1	)		(57	)		-			(57	)		(1	)		(58	)
Dividends declared - $1.08/share		-			-			-			-			-			-			(532	)		(532	)		-			(532	)
Non-controlling interest transactions		-			-			-			-			-			-			-			-			(26	)		(26	)
Effect of share-based compensation including issuance of common shares		153,808			8			3			-			-			-			-			11			-			11
Transfer of net loss on cash flow hedges		-			-			-			-			8			8			-			8			-			8
Other		-			-			-			(2	)		-			(2	)		-			(2	)		-			(2	)
BALANCE – JUNE 30, 2024		494,705,538			13,846			86			(344	)		(3	)		(347	)		11,542			25,127			32			25,159

 (See Notes to the Condensed Consolidated Financial Statements)

27

Unaudited

Condensed Consolidated Balance Sheets

		June 30						December 31
As at (millions of US dollars)	Note	2024			2023			2023
ASSETS
Current assets
Cash and cash equivalents			1,004			737			941
Receivables	6, 7, 10		8,123			8,595			5,398
Inventories			5,298			6,062			6,336
Prepaid expenses and other current assets			663			602			1,495
			15,088			15,996			14,170
Non-current assets
Property, plant and equipment			22,198			21,920			22,461
Goodwill			12,094			12,077			12,114
Intangible assets			1,912			2,252			2,217
Investments			703			708			736
Other assets			996			973			1,051
TOTAL ASSETS			52,991			53,926			52,749
LIABILITIES
Current liabilities
Short-term debt	7		1,571			2,922			1,815
Current portion of long-term debt			1,012			44			512
Current portion of lease liabilities			364			301			327
Payables and accrued charges	6		9,024			9,470			9,467
			11,971			12,737			12,121
Non-current liabilities
Long-term debt			9,399			9,498			8,913
Lease liabilities			1,024			861			999
Deferred income tax liabilities			3,615			3,584			3,574
Pension and other post-retirement benefit liabilities			245			245			252
Asset retirement obligations and accrued environmental costs			1,406			1,379			1,489
Other non-current liabilities			172			164			200
TOTAL LIABILITIES			27,832			28,468			27,548
SHAREHOLDERS’ EQUITY
Share capital			13,846			13,835			13,838
Contributed surplus			86			80			83
Accumulated other comprehensive loss			(347	)		(325	)		(296	)
Retained earnings			11,542			11,823			11,531
Equity holders of Nutrien			25,127			25,413			25,156
Non-controlling interest			32			45			45
TOTAL SHAREHOLDERS’ EQUITY			25,159			25,458			25,201
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			52,991			53,926			52,749

(See Notes to the Condensed Consolidated Financial Statements)

28

Unaudited

Notes to the Condensed Consolidated Financial Statements

As at and for the Three and Six Months Ended June 30, 2024

Note 1 Basis of presentation

Nutrien Ltd. (collectively with its subsidiaries, “Nutrien”, “we”, “us”, “our” or “the Company”) is a leading 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 IAS 34, “Interim Financial Reporting”. The accounting policies and methods of computation used in preparing these interim financial statements are materially consistent with those used in the preparation of our 2023 annual audited consolidated financial statements, as well as any amended standards adopted in 2024 that we previously disclosed. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual audited consolidated financial statements and should be read in conjunction with our 2023 annual audited consolidated financial statements. Certain immaterial 2023 figures have been reclassified in the condensed consolidated statements of earnings, condensed consolidated statements of cash flows and Note 4 Other expenses (income).

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. These interim financial statements were authorized by the Audit Committee of the Board of Directors for issue on August 7, 2024.

Note 2 Segment information

We have four reportable operating segments: Nutrien Ag Solutions (“Retail”), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise. Retail 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 produces. Potash freight, transportation and distribution costs only apply to our North American potash sales volumes. EBITDA presented in the succeeding tables is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.

(millions of US dollars)	Retail		Potash		Nitrogen		Phosphate		Corporate and Others		Eliminations			Consolidated
Assets – as at June 30, 2024		23,223		13,667		11,571		2,452		2,955		(877	)		52,991
Assets – as at December 31, 2023		23,056		13,571		11,466		2,438		2,818		(600	)		52,749

29

Unaudited

	Three Months Ended June 30, 2024
(millions of US dollars)	Retail		Potash		Nitrogen			Phosphate			Corporate and Others			Eliminations			Consolidated
Sales   – third party		8,074		750		948			384			-			-			10,156
– intersegment		-		86		239			67			-			(392	)		-
Sales   – total		8,074		836		1,187			451			-			(392	)		10,156
Freight, transportation and distribution		-		80		159			57			-			(56	)		240
Net sales		8,074		756		1,028			394			-			(336	)		9,916
Cost of goods sold		6,045		359		650			361			-			(411	)		7,004
Gross margin		2,029		397		378			33			-			75			2,912
Selling expenses (recovery)		1,005		3		8			2			(3	)		(7	)		1,008
General and administrative expenses		51		1		5			3			98			-			158
Provincial mining taxes		-		68		-			-			-			-			68
Share-based compensation expense		-		-		-			-			10			-			10
Impairment of assets		335		-		195			-			-			-			530
Foreign exchange loss, net of related derivatives		-		-		-			-			285			-			285
Other expenses (income)		41		4		(78	)		8			26			8			9
Earnings (loss) before finance costs and income taxes		597		321		248			20			(416	)		74			844
Depreciation and amortization		196		151		151			68			20			-			586
EBITDA		793		472		399			88			(396	)		74			1,430
Share-based compensation expense		-		-		-			-			10			-			10
Impairment of assets		335		-		195			-			-			-			530
Loss related to financial instruments in Argentina		-		-		-			-			15			-			15
ARO/ERL related income for non-operating sites		-		-		-			-			(35	)		-			(35	)
Foreign exchange loss, net of related derivatives		-		-		-			-			285			-			285
Adjusted EBITDA		1,128		472		594			88			(121	)		74			2,235
	Three Months Ended June 30, 2023
(millions of US dollars)	Retail		Potash		Nitrogen			Phosphate			Corporate and Others			Eliminations			Consolidated
Sales   – third party		9,127		976		1,065			486			-			-			11,654
– intersegment		1		140		306			74			-			(521	)		-
Sales   – total		9,128		1,116		1,371			560			-			(521	)		11,654
Freight, transportation and distribution		-		107		155			58			-			(68	)		252
Net sales		9,128		1,009		1,216			502			-			(453	)		11,402
Cost of goods sold		7,197		353		817			453			-			(584	)		8,236
Gross margin		1,931		656		399			49			-			131			3,166
Selling expenses (recovery)		971		3		7			2			(2	)		(2	)		979
General and administrative expenses		55		5		5			4			88			-			157
Provincial mining taxes		-		104		-			-			-			-			104
Share-based compensation recovery		-		-		-			-			(64	)		-			(64	)
Impairment of assets		465		-		-			233			-			-			698
Foreign exchange loss, net of related derivatives		-		-		-			-			52			-			52
Other expenses (income)		29		5		(20	)		1			99			(2	)		112
Earnings (loss) before finance costs and income taxes		411		539		407			(191	)		(173	)		135			1,128
Depreciation and amortization		188		115		162			71			20			-			556
EBITDA		599		654		569			(120	)		(153	)		135			1,684
Integration and restructuring related costs		3		-		-			-			7			-			10
Share-based compensation recovery		-		-		-			-			(64	)		-			(64	)
Impairment of assets		465		-		-			233			-			-			698
Loss related to financial instruments in Argentina		-		-		-			-			92			-			92
ARO/ERL related expense for non-operating sites		-		-		-			-			6			-			6
Foreign exchange loss, net of related derivatives		-		-		-			-			52			-			52
Adjusted EBITDA		1,067		654		569			113			(60	)		135			2,478

30

Unaudited

	Six Months Ended June 30, 2024
(millions of US dollars)	Retail		Potash			Nitrogen			Phosphate			Corporate and Others			Eliminations			Consolidated
Sales   – third party		11,382		1,571			1,794			798			-			-			15,545
– intersegment		-		192			421			152			-			(765	)		-
Sales   – total		11,382		1,763			2,215			950			-			(765	)		15,545
Freight, transportation and distribution		-		194			276			119			-			(111	)		478
Net sales		11,382		1,569			1,939			831			-			(654	)		15,067
Cost of goods sold		8,606		717			1,254			733			-			(692	)		10,618
Gross margin		2,776		852			685			98			-			38			4,449
Selling expenses (recovery)		1,795		6			15			4			(5	)		(13	)		1,802
General and administrative expenses		103		5			10			7			187			-			312
Provincial mining taxes		-		136			-			-			-			-			136
Share-based compensation expense		-		-			-			-			16			-			16
Impairment of assets		335		-			195			-			-			-			530
Foreign exchange loss, net of related derivatives		-		-			-			-			328			-			328
Other expenses (income)		63		1			(111	)		16			80			13			62
Earnings (loss) before finance costs and income taxes		480		704			576			71			(606	)		38			1,263
Depreciation and amortization		390		298			287			138			38			-			1,151
EBITDA		870		1,002			863			209			(568	)		38			2,414
Share-based compensation expense		-		-			-			-			16			-			16
Impairment of assets		335		-			195			-			-			-			530
Loss related to financial instruments in Argentina		-		-			-			-			34			-			34
ARO/ERL related income for non-operating sites		-		-			-			-			(32	)		-			(32	)
Foreign exchange loss, net of related derivatives		-		-			-			-			328			-			328
Adjusted EBITDA		1,205		1,002			1,058			209			(222	)		38			3,290
	Six Months Ended June 30, 2023
(millions of US dollars)	Retail		Potash			Nitrogen			Phosphate			Corporate and Others			Eliminations			Consolidated
Sales   – third party		12,549		1,999			2,219			994			-			-			17,761
– intersegment		1		194			570			138			-			(903	)		-
Sales   – total		12,550		2,193			2,789			1,132			-			(903	)		17,761
Freight, transportation and distribution		-		182			261			116			-			(108	)		451
Net sales		12,550		2,011			2,528			1,016			-			(795	)		17,310
Cost of goods sold		10,004		658			1,588			880			-			(899	)		12,231
Gross margin		2,546		1,353			940			136			-			104			5,079
Selling expenses		1,736		6			15			4			(4	)		(8	)		1,749
General and administrative expenses		105		8			10			7			172			-			302
Provincial mining taxes		-		223			-			-			-			-			223
Share-based compensation recovery		-		-			-			-			(49	)		-			(49	)
Impairment of assets		465		-			-			233			-			-			698
Foreign exchange loss, net of related derivatives		-		-			-			-			18			-			18
Other expenses (income)		44		(2	)		(34	)		13			52			(2	)		71
Earnings (loss) before finance costs and income taxes		196		1,118			949			(121	)		(189	)		114			2,067
Depreciation and amortization		369		212			296			138			37			-			1,052
EBITDA		565		1,330			1,245			17			(152	)		114			3,119
Integration and restructuring related costs		3		-			-			-			12			-			15
Share-based compensation recovery		-		-			-			-			(49	)		-			(49	)
Impairment of assets		465		-			-			233			-			-			698
Loss related to financial instruments in Argentina		-		-			-			-			92			-			92
ARO/ERL related expense for non-operating sites		-		-			-			-			6			-			6
Foreign exchange loss, net of related derivatives		-		-			-			-			18			-			18
Adjusted EBITDA		1,033		1,330			1,245			250			(73	)		114			3,899

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	Three Months Ended June 30						Six Months Ended June 30
(millions of US dollars)	2024			2023			2024			2023
Retail sales by product line
Crop nutrients		3,281			3,986			4,590			5,321
Crop protection products		2,733			3,070			3,847			4,224
Seed		1,434			1,428			1,919			1,935
Services and other		292			308			448			456
Merchandise		245			273			445			519
Nutrien Financial		133			122			199			179
Nutrien Financial elimination 1		(44	)		(59	)		(66	)		(84	)
		8,074			9,128			11,382			12,550
Potash sales by geography
Manufactured product
North America		353			577			873			994
Offshore 2		482			539			889			1,199
Other potash and purchased products		1			-			1			-
		836			1,116			1,763			2,193
Nitrogen sales by product line
Manufactured product
Ammonia		351			389			595			805
Urea and ESN®		426			490			792			981
Solutions, nitrates and sulfates		343			381			662			752
Other nitrogen and purchased products		67			111			166			251
		1,187			1,371			2,215			2,789
Phosphate sales by product line
Manufactured product
Fertilizer		291			289			612			591
Industrial and feed		155			189			322			384
Other phosphate and purchased products		5			82			16			157
		451			560			950			1,132

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

2 Relates to Canpotex Limited (“Canpotex”) (Note 10) and includes provisional pricing adjustments for the three months ended June 30, 2024 of $(1) million (2023 – $(173) million) and the six months ended June 30, 2024 of $11 million (2023 – $(320) million).

Note 3 Impairment of assets

We recorded the following non-cash impairment of assets in the condensed consolidated statements of earnings:

		Three and Six Months Ended June 30
Segment	Category (millions of US dollars)	2024	2023
Retail	Intangible assets	200	43
	Property, plant and equipment	120	-
	Other	15	-
	Goodwill	-	422
Nitrogen	Property, plant and equipment	195	-
Phosphate	Property, plant and equipment	-	233
Impairment of assets		530	698

Retail – Brazil

At June 30, 2024, due to the ongoing market instability and more moderate margin expectations, we have lowered our forecasted EBITDA for the Retail – Brazil cash generating unit (“CGU”). This triggered an impairment analysis. Prior to June 30, 2023, the Retail – Brazil CGU was part of the Retail – South America group of CGUs at which time the goodwill of the group was deemed to be fully impaired.

We used the fair value less cost to dispose (“FVLCD”) methodology (level 3) based on a market approach to assess the recoverable value of the Retail – Brazil CGU at June 30, 2024. This is a change from our 2023 analysis, as the market approach resulted in a more representative fair value of the CGU as restructuring initiatives in Brazil are currently being developed. In 2023, we used the

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FVLCD methodology based on after-tax discounted cash flows (10-year projections plus a terminal value) and an after-tax discount rate (14.4 percent). We incorporated assumptions that an independent market participant would apply.

The key assumptions with the greatest influence on the calculation of the impairment are the estimated recoverable value of property, plant and equipment and intangible assets. Any change to these estimates could directly impact the impairment amount.

(millions of US dollars)	Retail – Brazil June 30, 2024
Recoverable amount comprised of:
Working capital and other		324
Property, plant and equipment		92
Intangible assets		-

Nitrogen

During the three and six months ended June 30, 2024, we decided that we are no longer pursuing our Geismar Clean Ammonia project. As a result, we recorded an impairment loss of $195 million to fully write-off the amount of property, plant and equipment related to this project. As the project was cancelled before it generated revenue, the recoverable amount, which was based on its value in use, is $nil.

At June 30, 2023, we recorded an impairment of $465 million on our Retail – South America groups of CGUs and $233 million on our Phosphate – White Springs CGU. Refer to Note 13 of our 2023 annual audited consolidated financial statements for further details.

Note 4 Other expenses (income)

	Three Months Ended June 30				Six Months Ended June 30
(millions of US dollars)	2024		2023		2024		2023
Integration and restructuring related costs		-		10		-		15
Earnings of equity-accounted investees		(30)		(35)		(81)		(72)
Bad debt expense		50		30		63		39
Project feasibility costs		28		21		43		34
Customer prepayment costs		15		12		31		26
Insurance recoveries		(67)		-		(67)		-
(Gain) loss on natural gas derivatives not designated as hedge ¹		(1)		-		2		-
Loss related to financial instruments in Argentina		15		92		34		92
ARO/ERL related (income) expenses for non-operating sites ²		(35)		6		(32)		6
Gain on amendments to other post-retirement pension plans		-		-		-		(80)
Other expenses (income)		34		(24)		69		11
		9		112		62		71

1 Includes realized loss of $2 million for the three and six months ended June 30, 2024 (2023 – $nil) and unrealized gain of $3 million and $nil for the three and six months ended June 30, 2024, respectively (2023 – $nil).

2 ARO/ERL refers to asset retirement obligations and accrued environmental costs.

Argentina has certain currency controls in place that limit our ability to settle our foreign currency-denominated obligations or remit cash out of Argentina. We utilize various financial instruments such as Blue Chip Swaps or Bonds for the Reconstruction of a Free Argentina (“BOPREAL”) that effectively allow companies to transact in US dollars. We incurred losses on these transactions due to the significant divergence between the market exchange rate used for these financial instruments and the official Central Bank of Argentina rate. These losses are recorded as part of loss related to financial instruments in Argentina.

Note 5 Income taxes

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

	Three Months Ended June 30				Six Months Ended June 30
(millions of US dollars, except as otherwise noted)	2024		2023		2024		2023
Actual effective tax rate on earnings (%)		46		39		42		32
Actual effective tax rate including discrete items (%)		43		51		40		40
Discrete tax adjustments that impacted the tax rate		(23)		114		(20)		132

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Note 6 Financial instruments

Foreign Currency Derivatives

The following table presents the significant foreign currency derivatives outstanding at the periods presented.

	As at June 30, 2024									As at December 31, 2023
(millions of US dollars, except as otherwise noted)	Notional		Maturities (year)		Average Contract Rate (1:1)		Fair Value 1			Notional		Maturities (year)		Average Contract Rate (1:1)		Fair  Value 1
Derivatives not designated as hedges
Forwards (Sell/buy)
USD/Brazilian real (“BRL”)		2,065		July 2024		5.2208		(138	)		-		-		-		-
USD/Canadian dollars (“CAD”)		801		2024		1.3686		-			435		2024		1.3207		-
Australian dollars/USD		46		2024		1.5096		-			86		2024		1.5269		(5)
BRL/USD		-		-		-		-			94		2024		4.8688		-
Options
USD/BRL – sell USD calls		600		July 2024		5.1772		(45	)		-		-		-		-
USD/BRL – buy USD puts		600		July 2024		5.1772		-			-		-		-		-
Derivatives designated as hedges
Forwards (Sell/buy)
USD/CAD		681		2025		1.3605		(2	)		601		2024		1.3565		16
Presented as:
Receivables								-									16
Payables and accrued charges								(185	)								(5)

1 Fair value of foreign currency derivatives are based on exchange-quoted prices which are classified as Level 2.

Subsequent to the June 30, 2024 reporting period, we entered into $3 billion notional value of BRL/USD (sell/buy) forward contracts, not designated as hedges. These contracts have maturity dates between July and September 2024 at an average contract rate of 5.62. An additional loss of approximately $12 million on foreign currency derivatives at fair value through profit or loss was recorded in July 2024. As of the issuance date of this report, all derivative contracts related to Brazil were settled except for $220 million notional value BRL/USD (sell/buy) of forward contracts as part of our ongoing risk management strategy.

	Three Months Ended June 30				Six Months Ended June 30
(millions of US dollars)	2024		2023		2024		2023
Foreign exchange loss (gain)		40		(4)		30		(20)
Hyperinflationary loss		20		19		65		32
Loss on foreign currency derivatives at fair value through profit or loss		225		37		233		6
Foreign exchange loss, net of related derivatives		285		52		328		18

Natural Gas Derivatives

In 2024, we increased our use of natural gas derivatives to lock-in commodity prices. Our risk management strategies and accounting policies for derivatives that are designated and qualify as cash flow hedges are consistent with those disclosed in Note 10 and Note 30 of our annual consolidated financial statements, respectively. For derivatives that do not qualify as cash flow hedges, any gains or losses are recorded in net earnings in the current period.

We assess whether our derivative 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.

Hedging Transaction	Measurement of Ineffectiveness	Potential Sources of Ineffectiveness
New York Mercantile Exchange (“NYMEX”) natural gas hedges	Assessed on a prospective and retrospective basis using regression analyses	Changes in: • timing of forecast transactions • volume delivered • our credit risk or the credit risk of  a counterparty

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The table below presents information about our natural gas derivatives which are used to manage the risk related to significant price changes in natural gas.

	As at June 30, 2024
(millions of US dollars, except as otherwise noted)	Notional 1		Maturities (year)		Average Contract Price 2		Fair Value of Assets (Liabilities) 3
Derivatives not designated as hedges
NYMEX call options		29		2024		2.89		6
Derivatives designated as hedges
NYMEX swaps		25		2024		2.84		1

 1 In millions of Metric Million British Thermal Units (“MMBtu”).

 2 US dollars per MMBtu.

 3 Fair value of natural gas derivatives are based on a discounted cash flow model which are classified as Level 2.

Our financial instruments carrying amount are a reasonable approximation of their fair values, except for our long-term debt that has a carrying value of $10,411 million and fair value of $9,774 million as of June 30, 2024. There were no transfers between levels for financial instruments measured at fair value on a recurring basis.

Note 7 Short-term debt

On March 7, 2024, we entered into an uncommitted $500 million accounts receivable repurchase facility (the “repurchase facility”), where we may sell certain receivables from customers to a financial institution and agree to repurchase those receivables at a future date. When we draw under this repurchase facility, the receivables from customers remain on our condensed consolidated balance sheet as we control and retain substantially all of the risks and rewards associated with the receivables. As at June 30, 2024, there were no borrowings made under this facility.

Note 8 Long-term debt

Issuances in the second quarter of 2024  (millions of US dollars, except as otherwise noted)	Rate of interest (%)		Maturity		Amount
Senior notes issued 2024		5.2		June 21, 2027		400
Senior notes issued 2024		5.4		June 21, 2034		600
						1,000

The notes issued in the three and six months ended June 30, 2024, are unsecured, rank equally with our existing unsecured debt, and have no sinking fund requirements prior to maturity. Each series is redeemable and has various provisions for redemption prior to maturity, at our option, at specified prices.

In March 2024, we filed a base shelf prospectus in Canada and the US qualifying the issuance of common shares, debt securities and other securities during a period of 25 months from March 22, 2024.

Note 9 Seasonality

Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in the 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 requirements. 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 10 Related party transactions

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

As at (millions of US dollars)	June 30, 2024		December 31, 2023
Receivables from Canpotex		206		162

35

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Note 11 Accounting policies, estimates and judgments

IFRS 18, “Presentation and Disclosure in Financial Statements” (“IFRS 18”), which was issued on April 9, 2024, would supersede IAS 1, “Presentation of Financial Statements” and increase the comparability of financial statements by enhancing principles on aggregation and disaggregation. IFRS 18 will be effective January 1, 2027, and will also apply to comparative information. We are reviewing the standard to determine the potential impact.

Amendments for IFRS 9 and IFRS 7, “Amendments to the Classification and Measurement of Financial Instruments”, which was issued on May 30, 2024, will address diversity in practice by making the requirements more understandable and consistently applied. These amendments will be effective January 1, 2026, and will not apply to comparative information. We are reviewing the standard to determine the potential impact.

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