þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Quarterly Period Ended September 30, 2010 | ||
OR
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||
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Canada | N/A | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
|
122 1st Avenue South Saskatoon, Saskatchewan, Canada (Address of principal executive offices) |
S7K 7G3 (Zip Code) |
Large accelerated filer þ
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Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
ITEM 1. | FINANCIAL STATEMENTS |
September 30, |
December 31, |
|||||||
2010 | 2009(1) | |||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$ | 359.8 | $ | 385.4 | ||||
Receivables (Note 2)
|
975.1 | 1,137.9 | ||||||
Inventories (Note 3)
|
507.8 | 623.5 | ||||||
Prepaid expenses and other current assets
|
132.3 | 124.9 | ||||||
1,975.0 | 2,271.7 | |||||||
Property, plant and equipment
|
7,579.7 | 6,413.3 | ||||||
Investments
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4,459.5 | 3,760.3 | ||||||
Other assets
|
402.3 | 359.9 | ||||||
Intangible assets
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18.5 | 20.0 | ||||||
Goodwill
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97.0 | 97.0 | ||||||
$ | 14,532.0 | $ | 12,922.2 | |||||
Liabilities
|
||||||||
Current liabilities
|
||||||||
Short-term debt and current portion of long-term debt
|
$ | 993.4 | $ | 728.8 | ||||
Payables and accrued charges
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1,114.7 | 796.8 | ||||||
Current portion of derivative instrument liabilities
|
92.1 | 51.8 | ||||||
2,200.2 | 1,577.4 | |||||||
Long-term debt (Note 4)
|
2,721.6 | 3,319.3 | ||||||
Derivative instrument liabilities
|
223.6 | 123.2 | ||||||
Future income tax liability
|
967.7 | 962.4 | ||||||
Accrued pension and other post-retirement benefits
|
295.0 | 280.8 | ||||||
Accrued environmental costs and asset retirement obligations
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267.8 | 215.1 | ||||||
Other non-current liabilities and deferred credits
|
5.6 | 4.2 | ||||||
6,681.5 | 6,482.4 | |||||||
Contingencies and Guarantees (Notes 15 and 16,
respectively)
|
||||||||
Shareholders Equity (Note 7)
|
||||||||
Share capital
|
1,481.6 | 1,430.3 | ||||||
Unlimited authorization of common shares without par value;
issued and outstanding 297,559,913 and 295,975,550 at
September 30, 2010 and December 31, 2009, respectively
|
||||||||
Unlimited authorization of first preferred shares; none
outstanding
|
||||||||
Contributed surplus
|
160.1 | 149.5 | ||||||
Accumulated other comprehensive income
|
1,762.9 | 1,648.8 | ||||||
Retained earnings
|
4,445.9 | 3,211.2 | ||||||
7,850.5 | 6,439.8 | |||||||
$ | 14,532.0 | $ | 12,922.2 | |||||
(1) | Corrected as described in Note 18. |
2
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30 | September 30 | |||||||||||||||
2010 | 2009(1) | 2010 | 2009(1) | |||||||||||||
Sales (Note 6)
|
$ | 1,575.0 | $ | 1,099.1 | $ | 4,726.4 | $ | 2,877.6 | ||||||||
Less: Freight
|
81.1 | 53.7 | 250.4 | 130.2 | ||||||||||||
Transportation
and distribution
|
37.9 | 36.3 | 122.8 | 101.0 | ||||||||||||
Cost of
goods sold
|
892.7 | 664.4 | 2,491.2 | 1,904.5 | ||||||||||||
Gross Margin
|
563.3 | 344.7 | 1,862.0 | 741.9 | ||||||||||||
Selling and administrative
|
75.2 | 35.9 | 169.7 | 132.7 | ||||||||||||
Provincial mining and other taxes
|
16.2 | 2.1 | 55.9 | 17.0 | ||||||||||||
Foreign exchange (gain) loss
|
(1.7 | ) | (9.0 | ) | 7.2 | (1.3 | ) | |||||||||
Other income (Note 9)
|
(65.6 | ) | (41.2 | ) | (241.1 | ) | (264.6 | ) | ||||||||
24.1 | (12.2 | ) | (8.3 | ) | (116.2 | ) | ||||||||||
Operating Income
|
539.2 | 356.9 | 1,870.3 | 858.1 | ||||||||||||
Interest Expense (Note 10)
|
16.5 | 31.1 | 69.7 | 80.8 | ||||||||||||
Income Before Income Taxes
|
522.7 | 325.8 | 1,800.6 | 777.3 | ||||||||||||
Income Taxes (Note 11)
|
120.0 | 77.9 | 476.7 | 35.8 | ||||||||||||
Net Income
|
$ | 402.7 | $ | 247.9 | 1,323.9 | 741.5 | ||||||||||
Retained Earnings, Beginning of Period
|
3,211.2 | 2,348.5 | ||||||||||||||
Dividends
|
(89.2 | ) | (88.7 | ) | ||||||||||||
Retained Earnings, End of Period
|
$ | 4,445.9 | $ | 3,001.3 | ||||||||||||
Net Income Per Share (Note 12)
|
||||||||||||||||
Basic
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$ | 1.36 | $ | 0.84 | $ | 4.47 | $ | 2.51 | ||||||||
Diluted
|
$ | 1.32 | $ | 0.82 | $ | 4.34 | $ | 2.44 | ||||||||
Dividends Per Share
|
$ | 0.10 | $ | 0.10 | $ | 0.30 | $ | 0.30 | ||||||||
(1) | Corrected as described in Note 18. |
3
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30 | September 30 | |||||||||||||||
2010 | 2009(1) | 2010 | 2009(1) | |||||||||||||
Operating Activities
|
||||||||||||||||
Net income
|
$ | 402.7 | $ | 247.9 | $ | 1,323.9 | $ | 741.5 | ||||||||
Adjustments to reconcile net income to cash provided by
operating activities
|
||||||||||||||||
Depreciation and amortization
|
96.4 | 83.4 | 297.4 | 227.5 | ||||||||||||
Stock-based compensation
|
3.0 | 3.6 | 21.6 | 26.2 | ||||||||||||
Loss (gain) on disposal of property, plant and equipment
|
||||||||||||||||
and long-term investments
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0.2 | 7.0 | 3.5 | (106.9 | ) | |||||||||||
Foreign exchange on future income tax and miscellaneous items
|
(0.4 | ) | 1.1 | 1.7 | (1.0 | ) | ||||||||||
(Recovery of) provision for future income tax
|
(10.8 | ) | 140.3 | 50.0 | 64.0 | |||||||||||
Undistributed earnings of equity investees
|
(51.0 | ) | (32.5 | ) | (78.5 | ) | (1.3 | ) | ||||||||
Derivative instruments
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(9.3 | ) | (28.2 | ) | 4.2 | (70.0 | ) | |||||||||
Other long-term liabilities
|
(31.2 | ) | (62.8 | ) | 6.0 | (32.6 | ) | |||||||||
Subtotal of adjustments
|
(3.1 | ) | 111.9 | 305.9 | 105.9 | |||||||||||
Changes in non-cash operating working capital
|
||||||||||||||||
Receivables
|
(174.8 | ) | (139.0 | ) | 174.6 | 52.9 | ||||||||||
Inventories
|
146.8 | 9.4 | 117.1 | 70.5 | ||||||||||||
Prepaid expenses and other current assets
|
(12.8 | ) | 44.4 | (44.7 | ) | (9.2 | ) | |||||||||
Payables and accrued charges
|
145.0 | 46.2 | 322.3 | (605.8 | ) | |||||||||||
Subtotal of changes in non-cash operating working capital
|
104.2 | (39.0 | ) | 569.3 | (491.6 | ) | ||||||||||
Cash provided by operating activities
|
503.8 | 320.8 | 2,199.1 | 355.8 | ||||||||||||
Investing Activities
|
||||||||||||||||
Additions to property, plant and equipment
|
(504.6 | ) | (424.5 | ) | (1,394.1 | ) | (1,190.2 | ) | ||||||||
Purchase of long-term investments
|
- | - | (422.3 | ) | - | |||||||||||
Proceeds from disposal of property, plant and equipment and
long-term investments
|
0.2 | 0.1 | 0.5 | 148.4 | ||||||||||||
Other assets and intangible assets
|
(2.2 | ) | (25.6 | ) | (27.7 | ) | (36.1 | ) | ||||||||
Cash used in investing activities
|
(506.6 | ) | (450.0 | ) | (1,843.6 | ) | (1,077.9 | ) | ||||||||
Cash before financing activities
|
(2.8 | ) | (129.2 | ) | 355.5 | (722.1 | ) | |||||||||
Financing Activities
|
||||||||||||||||
Proceeds from long-term debt obligations
|
- | 1,478.7 | 400.0 | 4,033.7 | ||||||||||||
Repayment of and finance costs on long-term debt obligations
|
- | (1,062.2 | ) | (400.4 | ) | (3,291.4 | ) | |||||||||
Proceeds from (repayment of) short-term debt obligations
|
0.4 | (246.2 | ) | (332.0 | ) | 165.3 | ||||||||||
Dividends
|
(29.8 | ) | (29.2 | ) | (89.0 | ) | (87.9 | ) | ||||||||
Issuance of common shares
|
25.3 | 8.0 | 40.3 | 16.8 | ||||||||||||
Cash (used in) provided by financing activities
|
(4.1 | ) | 149.1 | (381.1 | ) | 836.5 | ||||||||||
(Decrease) Increase in Cash and Cash Equivalents
|
(6.9 | ) | 19.9 | (25.6 | ) | 114.4 | ||||||||||
Cash and Cash Equivalents, Beginning of Period
|
366.7 | 371.3 | 385.4 | 276.8 | ||||||||||||
Cash and Cash Equivalents, End of Period
|
$ | 359.8 | $ | 391.2 | $ | 359.8 | $ | 391.2 | ||||||||
Cash and cash equivalents comprised of:
|
||||||||||||||||
Cash
|
$ | 91.1 | $ | 98.5 | $ | 91.1 | $ | 98.5 | ||||||||
Short-term investments
|
268.7 | 292.7 | 268.7 | 292.7 | ||||||||||||
$ | 359.8 | $ | 391.2 | $ | 359.8 | $ | 391.2 | |||||||||
Supplemental cash flow disclosure
|
||||||||||||||||
Interest paid
|
$ | 1.2 | $ | 10.1 | $ | 54.9 | $ | 56.1 | ||||||||
Income taxes paid (recovered)
|
$ | 64.3 | $ | 3.0 | $ | (76.0 | ) | $ | 739.2 | |||||||
(1) | Corrected as described in Note 18. |
4
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30 | September 30 | |||||||||||||||
(Net of related income taxes) | 2010 | 2009(1) | 2010 | 2009(1) | ||||||||||||
Net Income
|
$ | 402.7 | $ | 247.9 | $ | 1,323.9 | $ | 741.5 | ||||||||
Other comprehensive income
|
||||||||||||||||
Net increase in unrealized gains on
available-for-sale
securities(2)
|
924.1 | 115.8 | 202.1 | 553.4 | ||||||||||||
Net losses on derivatives designated as cash flow
hedges(3)
|
(60.9 | ) | (11.1 | ) | (124.8 | ) | (39.9 | ) | ||||||||
Reclassification to income of net losses on cash flow
hedges(4)
|
12.5 | 14.5 | 36.1 | 39.9 | ||||||||||||
Unrealized foreign exchange gains on translation of
self-sustaining foreign operations
|
1.5 | 4.7 | 0.1 | 12.0 | ||||||||||||
Share of other comprehensive income of equity investees
|
3.0 | - | 0.6 | - | ||||||||||||
Other Comprehensive Income
|
880.2 | 123.9 | 114.1 | 565.4 | ||||||||||||
Comprehensive Income
|
$ | 1,282.9 | $ | 371.8 | $ | 1,438.0 | $ | 1,306.9 | ||||||||
(1) | Corrected as described in Note 18. | |
(2) | Available-for-sale securities are comprised of shares in Israel Chemicals Ltd. and Sinofert Holdings Limited and investments in auction rate securities. The amounts are net of income taxes of $NIL (2009 $NIL) for the three months ended September 30, 2010 and $NIL (2009 $26.5) for the nine months ended September 30, 2010. | |
(3) | Cash flow hedges are comprised of natural gas derivative instruments, and are net of income taxes of $(36.8) (2009 $(6.8)) for the three months ended September 30, 2010 and $(75.5) (2009 $(24.3)) for the nine months ended September 30, 2010. | |
(4) | Net of income taxes of $7.5 (2009 $8.9) for the three months ended September 30, 2010 and $21.8 (2009 $24.3) for the nine months ended September 30, 2010. |
September 30, |
December 31, |
|||||||
(Net of related income taxes) | 2010 | 2009(1) | ||||||
Unrealized gains on
available-for-sale
securities(2)
|
$ | 1,952.5 | $ | 1,750.4 | ||||
Net unrealized losses on derivatives designated as cash flow
hedges(3)
|
(200.1 | ) | (111.4 | ) | ||||
Unrealized foreign exchange gains on self-sustaining foreign
operations(4)
|
9.9 | 9.8 | ||||||
Share of other comprehensive income of equity
investees(5)
|
0.6 | - | ||||||
Accumulated other comprehensive income
|
1,762.9 | 1,648.8 | ||||||
Retained earnings
|
4,445.9 | 3,211.2 | ||||||
Accumulated Other Comprehensive Income and Retained
Earnings
|
$ | 6,208.8 | $ | 4,860.0 | ||||
(1) | Corrected as described in Note 18. | |
(2) | $2,102.9 before income taxes (2009 $1,900.8). | |
(3) | $(320.0) before income taxes (2009 $(177.6)). | |
(4) | $9.9 before income taxes (2009 $9.8). | |
(5) | $0.6 before income taxes (2009 $NIL). |
5
1. | Significant Accounting Policies |
2. | Receivables |
September 30, |
December 31, |
|||||||
2010 | 2009 | |||||||
Trade accounts Canpotex Limited
(Canpotex)
|
$ | 183.1 | $ | 164.3 | ||||
Other
|
502.0 | 264.4 | ||||||
Less allowance for doubtful accounts
|
(8.4 | ) | (8.4 | ) | ||||
676.7 | 420.3 | |||||||
Margin deposits on derivative instruments
|
224.1 | 108.9 | ||||||
Income taxes receivable
|
27.2 | 287.4 | ||||||
Provincial mining and other taxes receivable
|
- | 234.6 | ||||||
Other non-trade accounts
|
47.1 | 86.7 | ||||||
$ | 975.1 | $ | 1,137.9 | |||||
6
3. | Inventories |
September 30, |
December 31, |
|||||||
2010 | 2009 | |||||||
Finished products
|
$ | 184.6 | $ | 303.1 | ||||
Intermediate products
|
141.9 | 158.9 | ||||||
Raw materials
|
58.4 | 50.6 | ||||||
Materials and supplies
|
122.9 | 110.9 | ||||||
$ | 507.8 | $ | 623.5 | |||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30 | September 30 | |||||||||||||||
Items affecting cost of goods sold | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Expensed inventories
|
$ | 826.9 | $ | 579.5 | $ | 2,313.3 | $ | 1,581.3 | ||||||||
Writedowns of finished products
|
- | 5.0 | 4.5 | 45.2 | ||||||||||||
Writedowns of intermediate products
|
- | 4.7 | 0.3 | 4.7 | ||||||||||||
Writedowns of raw materials
|
- | 1.4 | - | 1.4 | ||||||||||||
Reserves for obsolete materials and supplies
|
0.5 | 0.5 | 1.5 | 1.8 | ||||||||||||
Reversals of writedowns
|
(0.4 | ) | (1.7 | ) | (2.1 | ) | (7.3 | ) | ||||||||
$ | 827.0 | $ | 589.4 | $ | 2,317.5 | $ | 1,627.1 | |||||||||
4. | Long-Term Debt |
5. | Capital Management |
September 30, |
December 31, |
|||||||
2010 | 2009 | |||||||
Short-term debt and current portion of long-term debt
|
$ | 993.4 | $ | 728.8 | ||||
Long-term debt
|
2,721.6 | 3,319.3 | ||||||
Total debt
|
3,715.0 | 4,048.1 | ||||||
Less: cash and cash equivalents
|
359.8 | 385.4 | ||||||
Net debt
|
3,355.2 | 3,662.7 | ||||||
Shareholders equity
|
7,850.5 | 6,439.8 | ||||||
Less: accumulated other comprehensive income
|
1,762.9 | 1,648.8 | ||||||
Adjusted shareholders equity
|
6,087.6 | 4,791.0 | ||||||
Adjusted
capital(1)
|
$ | 9,442.8 | $ | 8,453.7 | ||||
(1) | Adjusted capital = (total debt cash and cash equivalents) + (shareholders equity accumulated other comprehensive income). |
7
As At or For the |
||||||||
12 Months Ended | ||||||||
September 30, |
December 31, |
|||||||
2010 | 2009 | |||||||
Components of ratios
|
||||||||
Adjusted EBITDA (12 months ended)
|
$ | 2,575.0 | $ | 1,377.6 | ||||
Net debt
|
$ | 3,355.2 | $ | 3,662.7 | ||||
Adjusted interest expense (12 months ended)
|
$ | 219.2 | $ | 189.1 | ||||
Adjusted capital
|
$ | 9,442.8 | $ | 8,453.7 | ||||
Ratios
|
||||||||
Adjusted EBITDA to adjusted interest
expense(1)
|
11.7 | 7.3 | ||||||
Net debt to adjusted
EBITDA(2)
|
1.3 | 2.7 | ||||||
Net debt to adjusted
capital(3)
|
35.5% | 43.3% |
(1) | Adjusted EBITDA to adjusted interest expense = adjusted EBITDA (12 months ended) / adjusted interest expense (12 months ended). | |
(2) | Net debt to adjusted EBITDA = (total debt cash and cash equivalents) / adjusted EBITDA (12 months ended). | |
(3) | Net debt to adjusted capital = (total debt cash and cash equivalents) / (total debt cash and cash equivalents + shareholders equity accumulated other comprehensive income). |
Twelve |
Twelve |
|||||||||||||||||||||||
Months Ended |
Three Months Ended |
Months Ended |
||||||||||||||||||||||
September 30, |
September 30, |
June 30, |
March 31, |
December 31, |
December 31, |
|||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2009 | |||||||||||||||||||
Net income
|
$ | 1,563.1 | $ | 402.7 | $ | 472.0 | $ | 449.2 | $ | 239.2 | $ | 980.7 | ||||||||||||
Income taxes
|
520.1 | 120.0 | 174.3 | 182.4 | 43.4 | 79.2 | ||||||||||||||||||
Interest expense
|
109.8 | 16.5 | 22.7 | 30.5 | 40.1 | 120.9 | ||||||||||||||||||
Depreciation and amortization
|
382.0 | 96.4 | 99.9 | 101.1 | 84.6 | 312.1 | ||||||||||||||||||
Gain on disposal of auction rate securities
|
- | - | - | - | - | (115.3 | ) | |||||||||||||||||
Adjusted EBITDA
|
$ | 2,575.0 | $ | 635.6 | $ | 768.9 | $ | 763.2 | $ | 407.3 | $ | 1,377.6 | ||||||||||||
8
Twelve |
Twelve |
|||||||||||||||||||||||
Months Ended |
Three Months Ended |
Months Ended |
||||||||||||||||||||||
September 30, |
September 30, |
June 30, |
March 31, |
December 31, |
December 31, |
|||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2009 | |||||||||||||||||||
Interest expense
|
$ | 109.8 | $ | 16.5 | $ | 22.7 | $ | 30.5 | $ | 40.1 | $ | 120.9 | ||||||||||||
Interest capitalized to property, plant and equipment
|
109.4 | 37.0 | 30.3 | 20.7 | 21.4 | 68.2 | ||||||||||||||||||
Adjusted interest expense
|
$ | 219.2 | $ | 53.5 | $ | 53.0 | $ | 51.2 | $ | 61.5 | $ | 189.1 | ||||||||||||
6. | Segment Information |
Three Months Ended September 30, 2010 | ||||||||||||||||||||
Potash | Phosphate | Nitrogen | All Others | Consolidated | ||||||||||||||||
Sales
|
$ | 637.2 | $ | 536.0 | $ | 401.8 | $ | - | $ | 1,575.0 | ||||||||||
Freight
|
40.1 | 30.6 | 10.4 | - | 81.1 | |||||||||||||||
Transportation and distribution
|
15.0 | 13.5 | 9.4 | - | 37.9 | |||||||||||||||
Net sales third party
|
582.1 | 491.9 | 382.0 | - | ||||||||||||||||
Cost of goods sold
|
218.6 | 392.4 | 281.7 | - | 892.7 | |||||||||||||||
Gross margin
|
363.5 | 99.5 | 100.3 | - | 563.3 | |||||||||||||||
Depreciation and amortization
|
26.8 | 46.1 | 21.1 | 2.4 | 96.4 | |||||||||||||||
Inter-segment sales
|
- | - | 27.6 | - | - |
Three Months Ended September 30, 2009 | ||||||||||||||||||||
Potash | Phosphate | Nitrogen | All Others | Consolidated | ||||||||||||||||
Sales
|
$ | 423.4 | $ | 357.4 | $ | 318.3 | $ | - | $ | 1,099.1 | ||||||||||
Freight
|
16.8 | 24.3 | 12.6 | - | 53.7 | |||||||||||||||
Transportation and distribution
|
9.2 | 13.9 | 13.2 | - | 36.3 | |||||||||||||||
Net sales third party
|
397.4 | 319.2 | 292.5 | - | ||||||||||||||||
Cost of goods sold
|
146.0 | 276.5 | 241.9 | - | 664.4 | |||||||||||||||
Gross margin
|
251.4 | 42.7 | 50.6 | - | 344.7 | |||||||||||||||
Depreciation and amortization
|
13.2 | 43.1 | 25.1 | 2.0 | 83.4 | |||||||||||||||
Inter-segment sales
|
- | - | 23.3 | - | - |
Nine Months Ended September 30, 2010 | ||||||||||||||||||||
Potash | Phosphate | Nitrogen | All Others | Consolidated | ||||||||||||||||
Sales
|
$ | 2,170.4 | $ | 1,300.8 | $ | 1,255.2 | $ | - | $ | 4,726.4 | ||||||||||
Freight
|
142.9 | 75.2 | 32.3 | - | 250.4 | |||||||||||||||
Transportation and distribution
|
59.5 | 31.3 | 32.0 | - | 122.8 | |||||||||||||||
Net sales third party
|
1,968.0 | 1,194.3 | 1,190.9 | - | ||||||||||||||||
Cost of goods sold
|
691.5 | 966.7 | 833.0 | - | 2,491.2 | |||||||||||||||
Gross margin
|
1,276.5 | 227.6 | 357.9 | - | 1,862.0 | |||||||||||||||
Depreciation and amortization
|
84.4 | 136.5 | 70.1 | 6.4 | 297.4 | |||||||||||||||
Inter-segment sales
|
- | - | 81.1 | - | - |
9
Nine Months Ended September 30, 2009 | ||||||||||||||||||||
Potash | Phosphate | Nitrogen | All Others | Consolidated | ||||||||||||||||
Sales
|
$ | 903.3 | $ | 1,012.0 | $ | 962.3 | $ | - | $ | 2,877.6 | ||||||||||
Freight
|
34.1 | 58.3 | 37.8 | - | 130.2 | |||||||||||||||
Transportation and distribution
|
24.4 | 34.8 | 41.8 | - | 101.0 | |||||||||||||||
Net sales third party
|
844.8 | 918.9 | 882.7 | - | ||||||||||||||||
Cost of goods sold
|
320.6 | 849.9 | 734.0 | - | 1,904.5 | |||||||||||||||
Gross margin
|
524.2 | 69.0 | 148.7 | - | 741.9 | |||||||||||||||
Depreciation and amortization
|
26.6 | 120.0 | 74.3 | 6.6 | 227.5 | |||||||||||||||
Inter-segment sales
|
- | - | 44.1 | - | - |
Assets | Potash | Phosphate | Nitrogen | All Others | Consolidated | |||||||||||||||
Assets at September 30, 2010
|
$ | 5,346.9 | $ | 2,479.0 | $ | 1,834.6 | $ | 4,871.5 | $ | 14,532.0 | ||||||||||
Assets at December 31, 2009
|
4,708.3 | 2,356.8 | 1,688.6 | 4,168.5 | 12,922.2 | |||||||||||||||
Change in assets
|
638.6 | 122.2 | 146.0 | 703.0 | 1,609.8 | |||||||||||||||
Additions to property, plant and equipment
|
1,167.8 | 138.2 | 65.7 | 22.4 | 1,394.1 |
7. | Shareholders Equity |
10
Expected dividend
|
$ | 0.40 | ||
Expected volatility
|
50% | |||
Risk-free interest rate
|
2.61% | |||
Expected life of options
|
5.9 years |
8. | Pension and Other Post-Retirement Expenses |
Three Months |
Nine Months |
|||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
Defined Benefit Pension Plans | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Service cost
|
$ | 5.0 | $ | 4.3 | $ | 15.0 | $ | 12.9 | ||||||||
Interest cost
|
11.7 | 11.1 | 35.1 | 33.3 | ||||||||||||
Expected return on plan assets
|
(11.6 | ) | (9.6 | ) | (34.8 | ) | (28.8 | ) | ||||||||
Net amortization and change in valuation allowance
|
6.3 | 7.2 | 18.7 | 21.6 | ||||||||||||
Net expense
|
$ | 11.4 | $ | 13.0 | $ | 34.0 | $ | 39.0 | ||||||||
Three Months |
Nine Months |
|||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
Other Post-Retirement Plans | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Service cost
|
$ | 1.7 | $ | 1.5 | $ | 5.2 | $ | 4.6 | ||||||||
Interest cost
|
4.1 | 4.1 | 12.1 | 12.4 | ||||||||||||
Net amortization
|
(0.6 | ) | 0.2 | (1.6 | ) | 0.5 | ||||||||||
Net expense
|
$ | 5.2 | $ | 5.8 | $ | 15.7 | $ | 17.5 | ||||||||
9. | Other Income |
Three Months |
Nine Months |
|||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Share of earnings of equity investees
|
$ | 51.0 | $ | 32.5 | $ | 121.6 | $ | 100.2 | ||||||||
Dividend income
|
24.6 | 11.4 | 139.0 | 51.8 | ||||||||||||
Gain on disposal of auction rate securities
|
- | - | - | 115.3 | ||||||||||||
Other
|
(10.0 | ) | (2.7 | ) | (19.5 | ) | (2.7 | ) | ||||||||
$ | 65.6 | $ | 41.2 | $ | 241.1 | $ | 264.6 | |||||||||
11
10. | Interest Expense |
Three Months |
Nine Months |
|||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Interest expense on
|
||||||||||||||||
Short-term debt
|
$ | 1.9 | $ | 3.6 | $ | 5.8 | $ | 17.3 | ||||||||
Long-term debt
|
52.8 | 46.0 | 158.4 | 119.8 | ||||||||||||
Interest capitalized to property, plant and equipment
|
(37.0 | ) | (16.8 | ) | (88.0 | ) | (46.8 | ) | ||||||||
Interest income
|
(1.2 | ) | (1.7 | ) | (6.5 | ) | (9.5 | ) | ||||||||
$ | 16.5 | $ | 31.1 | $ | 69.7 | $ | 80.8 | |||||||||
11. | Income Taxes |
| To adjust the 2009 income tax provision to the income tax returns filed, an income tax expense of $18.2, $8.5 and $7.3 was recorded in the first, second, and third quarters, respectively. | |
| A future income tax expense of $6.3 as a result of US legislative changes to Medicare Part D adopted during the first quarter. | |
| A current income tax expense of $8.2 for international tax issues pertaining to transfer pricing during the second quarter. | |
| A future income tax recovery of $4.1 related to a second-quarter functional currency tax election by a subsidiary company for Canadian income tax purposes. |
| A future income tax recovery of $119.2 for a tax rate reduction resulting from an internal restructuring during the first quarter. | |
| A current income tax recovery of $47.6 recorded in the first quarter that related to an increase in permanent deductions in the US from prior years, which had a positive impact on cash. | |
| A future income tax expense of $24.4 related to a second-quarter functional currency tax election by the parent company for Canadian income tax purposes. | |
| The benefit of a lower proportion of consolidated income earned in the higher-tax jurisdictions. |
12. | Net Income Per Share |
12
13. | Financial Instruments and Related Risk Management |
September 30, |
December 31, |
|||||||
2010 | 2009 | |||||||
Cash and cash equivalents
|
$ | 359.8 | $ | 385.4 | ||||
Receivables
|
947.9 | 615.9 | ||||||
Derivative instrument assets
|
2.8 | 9.0 |
September 30, |
December 31, |
|||||||
2010 | 2009 | |||||||
1 30 days
|
$ | 20.4 | $ | 20.1 | ||||
31 60 days
|
- | 0.7 | ||||||
Greater than 60 days
|
1.0 | 0.7 | ||||||
$ | 21.4 | $ | 21.5 | |||||
As At and For the |
As At and For the |
|||||||
Nine Months Ended |
Year Ended |
|||||||
September 30, |
December 31, |
|||||||
2010 | 2009 | |||||||
Balance, beginning of period
|
$ | 8.4 | $ | 7.7 | ||||
Provision for receivables impairment
|
0.1 | 1.3 | ||||||
Receivables written off during the period as uncollectible
|
(0.1 | ) | (0.6 | ) | ||||
Balance, end of period
|
$ | 8.4 | $ | 8.4 | ||||
13
September 30, 2010 | ||||||||||||
Total |
Amount Outstanding |
Amount |
||||||||||
Amount | and Committed | Available | ||||||||||
Credit
facilities(1)
|
$ | 3,250.0 | $ | 394.8 | $ | 2,855.2 | ||||||
Line of credit
|
75.0 | 35.3 | (2) | 39.7 |
(1) | The company increased the amount available under its commercial paper program from $750.0 to $1,500.0 in the second quarter of 2010. The amount available under the commercial paper program is limited to the availability of backup funds under the credit facilities. Included in the amount outstanding and committed is $394.8 of commercial paper. Per the terms of the agreements, the commercial paper outstanding and committed, as applicable, is based on the US dollar balance or equivalent thereof in lawful money of other currencies at the time of issue; therefore, subsequent changes in the exchange rate applicable to Canadian dollar denominated commercial paper have no impact on this balance. | |
(2) | Letters of credit committed. |
Carrying |
||||||||||||||||||||||||
Amount at |
||||||||||||||||||||||||
September 30, |
Contractual |
Within |
Over |
|||||||||||||||||||||
2010 | Cash Flows | 1 year | 1 to 3 years | 3 to 5 years | 5 years | |||||||||||||||||||
Short-term debt
obligations(1)
|
$ | 395.0 | $ | 395.2 | $ | 395.2 | $ | - | $ | - | $ | - | ||||||||||||
Payables and accrued
charges(2)
|
720.0 | 720.0 | 720.0 | - | - | - | ||||||||||||||||||
Long-term debt
obligations(1)
|
3,357.7 | 4,948.2 | 795.6 | 542.9 | 1,237.5 | 2,372.2 | ||||||||||||||||||
Foreign currency derivatives
|
(2.8 | ) | ||||||||||||||||||||||
Outflow
|
100.0 | 100.0 | - | - | - | |||||||||||||||||||
Inflow
|
(102.8 | ) | (102.8 | ) | - | - | - | |||||||||||||||||
Natural gas derivative
liabilities(3)
|
315.7 | 327.2 | 91.5 | 90.0 | 65.3 | 80.4 | ||||||||||||||||||
$ | 4,785.6 | $ | 6,387.8 | $ | 1,999.5 | $ | 632.9 | $ | 1,302.8 | $ | 2,452.6 | |||||||||||||
(1) | Contractual cash flows include contractual interest payments related to debt obligations. Interest rates on variable rate debt are based on prevailing rates at September 30, 2010. | |
(2) | Excludes taxes, accrued interest, deferred revenues and current portions of accrued environmental costs and asset retirement obligations and accrued pension and other post-retirement benefits. This also excludes derivative financial instrument liabilities which have been presented separately. | |
(3) | Natural gas derivatives are subject to master netting agreements. Each counterparty has margin requirements that may require the company to post collateral against liability balances. |
14
Foreign Exchange Risk | ||||||||||||||||||||
5% increase in |
5% decrease in |
|||||||||||||||||||
Carrying Amount |
US$ | US$ | ||||||||||||||||||
of Asset (Liability) | Income | OCI | Income | OCI | ||||||||||||||||
September 30, 2010
|
||||||||||||||||||||
Available-for-sale
investments
|
||||||||||||||||||||
Israel Chemicals Ltd. (New Israeli shekels)
|
$ | 2,490.7 | $ | - | $ | (124.5 | ) | $ | - | $ | 124.5 | |||||||||
Sinofert Holdings Limited (Hong Kong dollars)
|
891.4 | - | (44.6 | ) | - | 44.6 | ||||||||||||||
Short-term debt (CDN)
|
(20.0 | ) | 1.0 | - | (1.0 | ) | - | |||||||||||||
Payables (CDN)
|
(144.9 | ) | 7.2 | - | (7.2 | ) | - | |||||||||||||
Foreign currency derivatives
|
2.8 | (5.1 | ) | - | 5.1 | - | ||||||||||||||
December 31, 2009
|
||||||||||||||||||||
Available-for-sale
investments
|
||||||||||||||||||||
Israel Chemicals Ltd. (New Israeli shekels)
|
1,895.7 | - | (94.8 | ) | - | 94.8 | ||||||||||||||
Sinofert Holdings Limited (Hong Kong dollars)
|
864.2 | - | (43.2 | ) | - | 43.2 | ||||||||||||||
Short-term debt (CDN)
|
(262.5 | ) | 13.1 | - | (13.1 | ) | - | |||||||||||||
Payables (CDN)
|
(167.2 | ) | 8.4 | - | (8.4 | ) | - | |||||||||||||
Foreign currency derivatives
|
5.0 | (20.4 | ) | - | 20.4 | - |
15
Price Risk | ||||||||||||||||||||||||
Carrying Amount |
Effect of 10% decrease |
Effect of 10% increase |
||||||||||||||||||||||
of Asset (Liability) | in prices on OCI | in prices on OCI | ||||||||||||||||||||||
September 30, |
December 31, |
September 30, |
December 31, |
September 30, |
December 31, |
|||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Natural gas derivatives
|
$ | (315.7 | ) | $ | (171.0 | ) | $ | (49.9 | ) | $ | (72.6 | ) | $ | 49.9 | $ | 72.8 | ||||||||
Available-for-sale
investments
|
3,382.1 | 2,759.9 | (338.2 | ) | (276.0 | ) | 338.2 | 276.0 |
September 30, 2010 | December 31, 2009 | |||||||||||||||
Carrying |
Carrying |
|||||||||||||||
Amount |
Fair Value |
Amount |
Fair Value |
|||||||||||||
of Asset |
of Asset |
of Asset |
of Asset |
|||||||||||||
(Liability) | (Liability) | (Liability) | (Liability) | |||||||||||||
Derivative instrument assets
|
||||||||||||||||
Natural gas derivatives
|
$ | - | $ | - | $ | 3.7 | $ | 3.7 | ||||||||
Foreign currency derivatives
|
2.8 | 2.8 | 5.3 | 5.3 | ||||||||||||
Available-for-sale
investments
|
3,382.1 | 3,382.1 | 2,759.9 | 2,759.9 | ||||||||||||
Derivative instrument liabilities
|
||||||||||||||||
Natural gas derivatives
|
(315.7 | ) | (315.7 | ) | (174.7 | ) | (174.7 | ) | ||||||||
Foreign currency derivatives
|
- | - | (0.3 | ) | (0.3 | ) | ||||||||||
Long-term debt
|
||||||||||||||||
Senior notes
|
(3,350.0 | ) | (3,583.4 | ) | (3,350.0 | ) | (3,505.6 | ) | ||||||||
Other
|
(7.7 | ) | (7.7 | ) | (8.0 | ) | (8.0 | ) |
16
Carrying |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Amount of |
Quoted Prices in |
Significant Other |
Significant |
|||||||||||||
Asset (Liability) |
Active Markets for |
Observable |
Unobservable |
|||||||||||||
at September 30, |
Identical Assets |
Inputs |
Inputs |
|||||||||||||
Description | 2010 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Derivative instrument assets
|
||||||||||||||||
Foreign currency derivatives
|
$ | 2.8 | $ | - | $ | 2.8 | $ | - | ||||||||
Available-for-sale
investments
|
3,382.1 | 3,382.1 | - | - | ||||||||||||
Derivative instrument liabilities
|
||||||||||||||||
Natural gas derivatives
|
(315.7 | ) | - | (59.4 | ) | (256.3 | ) |
Carrying |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Amount of |
Quoted Prices in |
Significant Other |
Significant |
|||||||||||||
Asset (Liability) |
Active Markets for |
Observable |
Unobservable |
|||||||||||||
at December 31, |
Identical Assets |
Inputs |
Inputs |
|||||||||||||
Description | 2009 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Derivative instrument assets
|
||||||||||||||||
Natural gas derivatives
|
$ | 3.7 | $ | - | $ | 1.2 | $ | 2.5 | ||||||||
Foreign currency derivatives
|
5.3 | - | 5.3 | - | ||||||||||||
Available-for-sale
investments
|
2,759.9 | 2,759.9 | - | - | ||||||||||||
Derivative instrument liabilities
|
||||||||||||||||
Natural gas derivatives
|
(174.7 | ) | - | (53.2 | ) | (121.5 | ) | |||||||||
Foreign currency derivatives
|
(0.3 | ) | - | (0.3 | ) | - |
Natural Gas Derivatives | ||||||||
September 30, |
December 31, |
|||||||
2010 | 2009 | |||||||
Balance, beginning of period
|
$ | (119.0 | ) | $ | (110.8 | ) | ||
Total losses (realized and unrealized) before income taxes
|
||||||||
Included in earnings
|
(25.1 | ) | (48.6 | ) | ||||
Included in other comprehensive income
|
(144.4 | ) | (49.4 | ) | ||||
Other
|
- | - | ||||||
Purchases
|
- | - | ||||||
Sales
|
- | - | ||||||
Issues
|
- | - | ||||||
Settlements
|
32.2 | 66.0 | ||||||
Transfer out of Level 3
|
- | 23.8 | ||||||
Balance, end of period
|
$ | (256.3 | ) | $ | (119.0 | ) | ||
Nine |
Twelve |
|||||||
Months |
Months |
|||||||
Ended |
Ended |
|||||||
September 30, |
December 31, |
|||||||
2010 | 2009 | |||||||
Amount of total losses for the period included in earnings
attributable to the change in unrealized gains or losses
relating to instruments still held at the reporting date
|
$ | - | $ | (0.4 | ) | |||
Losses, realized and unrealized, included in earnings for the
period, reported in cost of goods sold
|
$ | (25.1 | ) | $ | (48.6 | ) | ||
17
14. | Seasonality |
15. | Contingencies |
| The company, along with other parties, has been notified by the US Environmental Protection Agency (USEPA) of potential liability under the US Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) with respect to certain soil and groundwater conditions at a PCS Joint Venture blending facility in Lakeland, Florida and a certain adjoining former property. A Record of Decision (ROD) was issued on September 27, 2007 and provides for a remedy that requires excavation of impacted soils and interim treatment of groundwater. The total remedy cost is estimated in the ROD to be $8.5. In September 2010, the USEPA approved the Remedial Design Report to address the soil contamination. | |
| The USEPA has identified PCS Nitrogen, Inc. (PCS Nitrogen) as a potentially responsible party with respect to a former fertilizer blending operation in Charleston, South Carolina, known as the Planters Property or Columbia Nitrogen site, formerly owned by a company from which PCS Nitrogen acquired certain other assets. The USEPA has requested reimbursement of approximately $3.0 of previously incurred response costs and the performance or financing of future site investigation and response activities from PCS Nitrogen and other named potentially responsible parties. In September 2005, Ashley II of Charleston, L.L.C., the current owner of the Planters Property, filed a complaint in the United States District Court for the District of South Carolina seeking a declaratory judgment that PCS Nitrogen is liable to pay environmental response costs that Ashley II of Charleston, L.L.C. alleges it has incurred and will incur in connection with response activities at the site. After the Phase II trial, the district court allocated 30 percent of the liability for response costs at the site to PCS Nitrogen, as well as a proportional share of any costs that cannot be recovered from another responsible party. PCS has filed a motion for amendment of this decision. If that request is denied, the decision may be appealed, along with a previous decision imposing successor liability on PCS. The ultimate amount of liability for PCS depends upon the amount needed for remedial activities, the ability of other parties to pay, and on the availability of insurance. | |
| PCS Phosphate has agreed to participate, on a non-joint and several basis, with parties to an Administrative Settlement Agreement with the USEPA (Settling Parties) in the performance of a removal action and the payment of certain other costs associated with PCB soil contamination at the Ward Superfund Site in Raleigh, North Carolina (Site), including reimbursement of the USEPAs past costs. The removal activities commenced at the Site in August 2007. The cost of performing the removal action at the Site is |
18
estimated at $70.0. The Settling Parties have initiated CERCLA cost recovery litigation against PCS Phosphate and more than 100 other entities. PCS Phosphate filed crossclaims and counterclaims seeking cost recovery. In addition to the removal action at the Site, investigation of sediments downstream of the Site in what is called Operable Unit 1 has occurred. In September 2008, the USEPA issued a final remedy for Operable Unit 1, with an estimated cost of $6.1. In response to a special notice letter from the USEPA, PCS Phosphate and the Settling Parties made a good-faith offer to perform and/or pay for certain actions described in the special notice letter. At this time, the company is unable to evaluate the extent of any exposure that it may have for the matters addressed in the special notice letter. |
| Pursuant to the 1996 Corrective Action Consent Order (the Order) executed between PCS Nitrogen Fertilizer, L.P., formerly known as Arcadian Fertilizer, L.P. (PCS Nitrogen Fertilizer) and Georgia Department of Natural Resources, Environmental Protection Division (GEPD) in conjunction with PCS Nitrogen Fertilizers purchase of real property located in Augusta, Georgia, PCS Nitrogen Fertilizer agreed to perform certain activities including a facility investigation and, if necessary, a corrective action. PCS Nitrogen Fertilizer has performed an investigation of environmental site conditions, has documented its findings in several successive facility investigation reports submitted to GEPD and has conducted a pilot study to evaluate the viability of in-situ bioremediation of groundwater at the site. In May 2009, PCS Nitrogen Fertilizer submitted a Corrective Action Plan (CAP) to GEPD proposing to utilize in-situ bioremediation of groundwater at the site. In the event GEPD approves the CAP, a full-scale bioremediation remedy will be implemented. | |
| In December 2009, during a routine inspection of a gypsum stack at the White Springs, Florida facility a sinkhole was discovered that resulted in the loss of approximately 84 million gallons of water from the stack. The company is sampling production and monitoring wells on its property and drinking water wells on neighboring property to assess impacts. The company incurred costs of $3.3 to address the sinkhole between the time of discovery and the end of the second quarter of 2010. The Florida Department of Environmental Protection (FDEP) issued a notice to the company stating that the release may constitute an unauthorized discharge. The company is negotiating an order with the FDEP in an effort to address the situation. The company entered into an order on consent with the USEPA that requires the company to complete a study of available feasible measures to reduce the possibility and impacts of any future sinkholes. Depending on the outcome of this study, the order will require the implementation of certain mitigation measures, although the scope and timing for the implementation of any such measures cannot be ascertained at the current time. The company is unable at this time to estimate with certainty the total costs that may be incurred to address this matter. |
| The USEPA has notified the company of various alleged violations of the US Resource Conservation and Recovery Act (RCRA) at its Aurora, North Carolina, White Springs, Florida and Geismar, Louisiana plants. The company has entered into RCRA 3013 Administrative Orders on Consent and has performed certain site assessment activities at its White Springs, Aurora and Geismar plants. The company is uncertain if any resolution will be possible without litigation, or, if litigation occurs, what the outcome would be. At this time, the company is unable to evaluate the extent of any exposure that it may have in these matters. | |
| The USEPA has notified the company of various alleged violations of the Clean Air Act at its Geismar, Louisiana plant. The government has demanded process changes and penalties that would cost a total of approximately $27.0, but the company denies that it has any liability for the Geismar matter. Although the company is proceeding with planning and permitting for the process changes demanded by the government, the company is uncertain if any resolution will be possible without litigation, or, if litigation occurs, what the outcome would be. In July 2010, without alleging any specific violation of the Clean Air Act, the |
19
USEPA requested that the company meet and demonstrate compliance with the Clean Air Act for specified projects undertaken at the White Springs sulfuric acid plants. The company participated in such meeting but, at this time, is unable to evaluate if it has any exposure. |
| Significant portions of the companys phosphate reserves in Aurora, North Carolina are located in wetlands. Under the Clean Water Act, the company must obtain a permit from the US Army Corps of Engineers (the Corps) before mining in the wetlands. On January 15, 2009, the Division of Water Quality of the North Carolina Department of Natural Resources issued a certification under Section 401 of the Clean Water Act, that mining of phosphate in excess of thirty years from lands owned or controlled by the company, including some wetlands, would not degrade water quality. Thereafter, on June 10, 2009, the Corps issued the company a permit that will allow the company to mine the phosphate deposits identified in the 401 certification. USEPA decided not to seek additional review of the permit. On March 12, 2009, four environmental organizations (Pamlico-Tar River Foundation, North Carolina Coastal Federation, Environmental Defense Fund and Sierra Club) filed a Petition for a Contested Case Hearing before the North Carolina Office of Administrative Hearings (OAH) challenging the 401 certification. The company has intervened in this proceeding. Petitioners filed a motion for partial summary judgment on February 5, 2010 and the company filed a response and cross-motion for summary judgment on March 18, 2010. The Division of Water Quality also filed a response to Petitioners motion for partial summary judgment on March 18, 2010. In August 2010, the parties argued these motions before the OAH. At this time, the company is unable to evaluate the extent of any exposure that it may have in this matter. | |
| In May 2009, the Canadian government announced that its new industrial greenhouse gas emissions policies will be coordinated with policies that may be implemented in the US. In July 2009, the Canadian government adopted rules requiring the reporting of specified greenhouse gas emissions from sources that emit more than 50,000 tons of carbon dioxide equivalents. In September 2009, the USEPA promulgated rules requiring the reporting of greenhouse gas emissions for all fuel combustion sources emitting more than 25,000 tons of carbon dioxide equivalents and certain other listed sources. The company does not believe that compliance with these emission reporting regulations will have a material adverse effect on its consolidated financial position. In December 2009, the USEPA issued a finding that greenhouse gas emissions from mobile sources endanger public health and welfare. In 2010, the USEPA issued rules regulating greenhouse gas emissions from model year 2012 vehicles sold after January 2, 2011. On that date, the USEPA also will begin phasing in requirements for all new stationary sources, such as power plants, that emit 100,000 tons of greenhouse gases per year or modified sources that increase emissions by 75,000 tons per year to obtain permits incorporating the best available control technology for such emissions. The company is not currently aware of any projects at its facilities that would be subject to these requirements when they become effective. The company is monitoring these developments and, except as indicated above, their effect on its operations cannot be determined with certainty at this time. | |
| On January 26, 2010, the USEPA proposed nutrient criteria for Florida lakes and flowing waters. These criteria are currently scheduled to be promulgated in November 2010. The criteria will become part of Floridas water quality standards sixty days after the final criteria are issued. The company, along with other phosphate companies, is participating in the USEPA rulemaking process. If the USEPA rule is adopted as proposed, projected capital costs resulting from the rule could be in excess of $100.0 for the companys White Springs plant, and there is no guarantee that controls can be implemented that are capable of achieving compliance with the proposed rule under all flow conditions. This assumes that the rule is adopted as proposed and that none of the site specific criteria mechanisms are available to the White Springs plant. There has been significant comment on the proposed rule by government and industry groups. The prospects for a rule to be adopted and become enforceable without significant change from the proposal are uncertain. The company is uncertain if any resolution will be possible without litigation, or, if litigation occurs, what the outcome would be. | |
| The company, having been unable to agree with Mosaic Potash Esterhazy Limited Partnership (Mosaic) on the remaining amount of potash that the company is entitled to receive from Mosaic pursuant to the mining and processing agreement in respect of the companys rights at the Esterhazy mine, issued a Statement of Claim in the Saskatchewan Court of Queens Bench against Mosaic on May 27, 2009. In the |
20
| Between September 11 and October 2, 2008, the company and PCS Sales (USA), Inc. were named as defendants in eight very similar antitrust complaints filed in federal courts. Other potash producers are also defendants in these cases. Each of the separate complaints alleges conspiracy to fix potash prices, to divide markets, to restrict supply and to fraudulently conceal the conspiracy, all in violation of Section 1 of the Sherman Act. The company and PCS Sales (USA), Inc. believe each of these eight private antitrust law lawsuits is without merit and intend to defend them vigorously. | |
| On August 20, 2010, BHP commenced the BHP Offer, being an unsolicited offer to purchase all of the companys issued and outstanding common shares for US$130 per common share. The BHP Offer, unless extended, is open for acceptance until November 18, 2010. After carefully considering the BHP Offer, with the benefit of advice from its independent financial and legal advisors, PotashCorps Board of Directors unanimously determined that the BHP Offer is not in the best interests of the company, its shareholders or other stakeholders. The Board of Directors has unanimously recommended that shareholders reject the BHP Offer and not tender their common shares to the BHP Offer. For more information, see PotashCorps Directors Circular and Solicitation/Recommendation Statement on Schedule 14D-9 filed with the US Securities and Exchange Commission and Canadian provincial securities commissions. |
16. | Guarantees |
21
22
17. | Reconciliation of Canadian and United States Generally Accepted Accounting Principles |
23
Service Period Commenced | ||||||||
Performance Option Plan Year | Canadian GAAP | US GAAP | ||||||
2007
|
January 1, 2007 | May 3, 2007 | ||||||
2008
|
January 1, 2008 | May 8, 2008 | ||||||
2009
|
January 1, 2009 | May 7, 2009 | ||||||
2010
|
January 1, 2010 | May 6, 2010 |
24
Three Months |
Nine Months |
|||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2010 | 2009(1) | 2010 | 2009(1) | |||||||||||||
Net income as reported Canadian GAAP
|
$ | 402.7 | $ | 247.9 | $ | 1,323.9 | $ | 741.5 | ||||||||
Items increasing (decreasing) reported net income
|
||||||||||||||||
Inventory valuation (a)
|
- | (1.4 | ) | 1.2 | (1.7 | ) | ||||||||||
Share of earnings of equity investees (b)
|
(0.6 | ) | (0.6 | ) | (0.3 | ) | (0.6 | ) | ||||||||
Asset write-down (c)
|
- | - | (32.8 | ) | - | |||||||||||
Depreciation and amortization (d)
|
2.1 | 2.1 | 6.3 | 6.3 | ||||||||||||
Exploration costs (e)
|
(0.4 | ) | (0.3 | ) | (1.0 | ) | (0.3 | ) | ||||||||
Pension and other post-retirement benefits (f)
|
- | 0.3 | - | 0.9 | ||||||||||||
Stock-based compensation (i)
|
2.9 | (3.6 | ) | 2.2 | 0.5 | |||||||||||
Stripping costs (j)
|
(1.5 | ) | (3.0 | ) | (16.4 | ) | (5.8 | ) | ||||||||
Deferred income taxes relating to the above adjustments (k)
|
(0.6 | ) | 1.4 | 10.5 | 2.8 | |||||||||||
Income taxes related to US GAAP effective income tax rate (k, m)
|
2.6 | 12.9 | 4.5 | 12.9 | ||||||||||||
Income taxes related to stock-based compensation (l)
|
(33.5 | ) | (1.2 | ) | (41.5 | ) | (5.6 | ) | ||||||||
Income taxes related to uncertain income tax positions (m)
|
(11.2 | ) | (4.5 | ) | 5.0 | (8.4 | ) | |||||||||
Net income US GAAP
|
$ | 362.5 | $ | 250.0 | $ | 1,261.6 | $ | 742.5 | ||||||||
Basic weighted average shares outstanding
US GAAP
|
296,971,000 | 295,721,000 | 296,492,000 | 295,467,000 | ||||||||||||
Diluted weighted average shares outstanding
US GAAP (i)
|
305,219,000 | 303,927,000 | 304,803,000 | 303,801,000 | ||||||||||||
Basic net income per share US GAAP
|
$ | 1.22 | $ | 0.85 | $ | 4.26 | $ | 2.51 | ||||||||
Diluted net income per share US GAAP
|
$ | 1.19 | $ | 0.82 | $ | 4.14 | $ | 2.44 | ||||||||
(1) | Corrected as described in Note 18. |
September 30, |
December 31, |
|||||||
2010 | 2009 | |||||||
Total assets as reported Canadian GAAP
|
$ | 14,532.0 | $ | 12,922.2 | ||||
Items increasing (decreasing) reported total assets
|
||||||||
Inventory (a)
|
(0.5 | ) | (1.7 | ) | ||||
Investment in equity investees (b)
|
(7.3 | ) | (4.0 | ) | ||||
Property, plant and equipment (c, d)
|
(110.9 | ) | (84.4 | ) | ||||
Goodwill (c)
|
(46.7 | ) | (46.7 | ) | ||||
Exploration costs (e)
|
(14.4 | ) | (13.4 | ) | ||||
Pension and other post-retirement benefits (f)
|
(165.0 | ) | (180.9 | ) | ||||
Margin deposits associated with derivative instruments (h)
|
(224.1 | ) | (108.9 | ) | ||||
Stripping costs (j)
|
(63.5 | ) | (47.1 | ) | ||||
Income tax asset related to uncertain income tax positions (m)
|
2.0 | 33.7 | ||||||
Total assets US GAAP
|
$ | 13,901.6 | $ | 12,468.8 | ||||
25
September 30, |
December 31, |
|||||||
2010 | 2009(1) | |||||||
Total shareholders equity as reported Canadian
GAAP
|
$ | 7,850.5 | $ | 6,439.8 | ||||
Items increasing (decreasing) reported shareholders equity
|
||||||||
Accumulated other comprehensive income
|
||||||||
Share of accumulated other comprehensive income of equity
investees (b)
|
(2.1 | ) | (1.9 | ) | ||||
Pension and other post-retirement benefits (f)
|
(218.4 | ) | (229.7 | ) | ||||
Foreign currency translation adjustment (g)
|
(20.9 | ) | (20.9 | ) | ||||
Income taxes related to uncertain income tax positions (m)
|
(1.2 | ) | (1.2 | ) | ||||
Inventory valuation (a)
|
(0.5 | ) | (1.7 | ) | ||||
Share of other comprehensive income of equity investees (b)
|
(0.2 | ) | 0.1 | |||||
Provision for asset impairment and asset write-down (c)
|
(250.8 | ) | (218.0 | ) | ||||
Depreciation and amortization (d)
|
93.2 | 86.9 | ||||||
Exploration costs (e)
|
(14.4 | ) | (13.4 | ) | ||||
Foreign currency translation adjustment (g)
|
20.9 | 20.9 | ||||||
Stock-based compensation (i)
|
4.6 | 2.4 | ||||||
Stripping costs (j)
|
(63.5 | ) | (47.1 | ) | ||||
Deferred income taxes relating to the above adjustments (k)
|
49.7 | 39.2 | ||||||
Income taxes related to US GAAP effective income tax rate (k, m)
|
(55.7 | ) | (60.2 | ) | ||||
Income taxes related to uncertain income tax positions (m)
|
94.8 | 89.8 | ||||||
Shareholders equity US GAAP
|
$ | 7,486.0 | $ | 6,085.0 | ||||
(1) | Corrected as described in Note 18. |
September 30, |
December 31, |
|||||||||
Derivative instrument assets (liabilities)(1) | Balance Sheet Location | 2010 | 2009 | |||||||
Derivatives designated as hedging instruments
|
||||||||||
Natural gas derivatives
|
Prepaid expenses and other current assets | $ | - | $ | 0.5 | |||||
Natural gas derivatives
|
Other assets | - | 3.2 | |||||||
Natural gas derivatives
|
Current portion of derivative instrument liabilities | (92.1 | ) | (51.5 | ) | |||||
Natural gas derivatives
|
Derivative instrument liabilities | (223.6 | ) | (123.2 | ) | |||||
Total derivatives designated as hedging instruments
|
(315.7 | ) | (171.0 | ) | ||||||
Derivatives not designated as hedging instruments
|
||||||||||
Foreign currency derivatives
|
Prepaid expenses and other current assets | 2.8 | 5.3 | |||||||
Foreign currency derivatives
|
Current portion of derivative instrument liabilities | - | (0.3 | ) | ||||||
Total derivatives not designated as hedging instruments
|
$ | 2.8 | $ | 5.0 | ||||||
(1) | All fair value amounts are gross and exclude netted cash collateral balances. |
26
Amount of Loss |
||||||||||||||||||||||||||||
Recognized in |
||||||||||||||||||||||||||||
Amount of Loss |
Income |
|||||||||||||||||||||||||||
Reclassified from |
Location of Loss |
(Ineffective |
||||||||||||||||||||||||||
Accumulated |
Recognized in |
Portion and |
||||||||||||||||||||||||||
Amount of Loss |
Location of Loss |
OCI |
Income (Ineffective |
Amount |
||||||||||||||||||||||||
Recognized |
Reclassified |
into Income |
Portion and Amount |
Excluded from |
||||||||||||||||||||||||
in OCI |
from Accumulated |
(Effective |
Excluded from |
Effectiveness |
||||||||||||||||||||||||
Derivatives in Cash |
(Effective Portion) |
OCI into Income |
Portion) |
Effectiveness |
Testing) | |||||||||||||||||||||||
Flow Hedging Relationships | 2010 | 2009 | (Effective Portion) | 2010 | 2009 | Testing) | 2010 | 2009 | ||||||||||||||||||||
Natural gas derivatives
|
$ | (97.3 | ) | $ | (17.9 | ) | Cost of goods sold | $ | (19.6 | ) | $ | (23.4 | ) | Cost of goods sold | $ | (0.4 | ) | $ | - | |||||||||
Amount of |
||||||||||
Gain Recognized |
||||||||||
Derivatives Not Designated |
in Income | |||||||||
as Hedging Instruments | Location of Gain Recognized in Income | 2010 | 2009 | |||||||
Foreign currency derivatives
|
Foreign exchange | $ | 9.4 | $ | 18.2 | |||||
Amount of Loss |
||||||||||||||||||||||||||||
Recognized in |
||||||||||||||||||||||||||||
Amount of Loss |
Income |
|||||||||||||||||||||||||||
Reclassified from |
Location of Loss |
(Ineffective |
||||||||||||||||||||||||||
Accumulated |
Recognized in |
Portion and |
||||||||||||||||||||||||||
Amount of Loss |
Location of Loss |
OCI |
Income (Ineffective |
Amount |
||||||||||||||||||||||||
Recognized |
Reclassified |
into Income |
Portion and Amount |
Excluded from |
||||||||||||||||||||||||
in OCI |
from Accumulated |
(Effective |
Excluded from |
Effectiveness |
||||||||||||||||||||||||
Derivatives in Cash |
(Effective Portion) |
OCI into Income |
Portion) |
Effectiveness |
Testing) | |||||||||||||||||||||||
Flow Hedging Relationships | 2010 | 2009 | (Effective Portion) | 2010 | 2009 | Testing) | 2010 | 2009 | ||||||||||||||||||||
Natural gas derivatives
|
$ | (199.9 | ) | $ | (64.0 | ) | Cost of goods sold | $ | (57.5 | ) | $ | (64.0 | ) | Cost of goods sold | $ | (0.4 | ) | $ | (0.2 | ) | ||||||||
Amount of Gain |
||||||||||
(Loss) Recognized |
||||||||||
Derivatives Not Designated |
in Income | |||||||||
as Hedging Instruments | Location of Gain (Loss) Recognized in Income | 2010 | 2009 | |||||||
Foreign currency derivatives
|
Foreign exchange | $ | 0.7 | $ | (4.3 | ) | ||||
Natural gas derivatives
|
Cost of goods sold | (0.2 | ) | 1.1 | ||||||
27
18. | Comparative Figures |
2006 | 2007 | 2008 | 2009 | |||||||||||||||||||||||||||||||||||||||||||||
As |
As |
As |
As |
|||||||||||||||||||||||||||||||||||||||||||||
Previously |
As |
Previously |
As |
Previously |
As |
Previously |
As |
|||||||||||||||||||||||||||||||||||||||||
Reported | Adjustment | Corrected | Reported | Adjustment | Corrected | Reported | Adjustment | Corrected | Reported | Adjustment | Corrected | |||||||||||||||||||||||||||||||||||||
Consolidated Statements of Financial Position and Accumulated
Other Comprehensive Income and Retained Earnings (as applicable)
|
||||||||||||||||||||||||||||||||||||||||||||||||
At December 31:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Payables and accrued charges
|
545.2 | - | 545.2 | 911.7 | - | 911.7 | 1,183.6 | 7.6 | 1,191.2 | 779.3 | 17.5 | 796.8 | ||||||||||||||||||||||||||||||||||||
Accrued environmental costs and
asset retirement obligations |
110.3 | 40.7 | 151.0 | 121.0 | 39.8 | 160.8 | 133.4 | 78.8 | 212.2 | 134.8 | 80.3 | 215.1 | ||||||||||||||||||||||||||||||||||||
Future income tax liability
|
632.1 | (15.8 | ) | 616.3 | 988.1 | (15.3 | ) | 972.8 | 794.2 | (32.6 | ) | 761.6 | 999.3 | (36.9 | ) | 962.4 | ||||||||||||||||||||||||||||||||
Retained earnings
|
1,286.4 | (24.9 | ) | 1,261.5 | 2,279.6 | (24.5 | ) | 2,255.1 | 2,402.3 | (53.8 | ) | 2,348.5 | 3,272.1 | (60.9 | ) | 3,211.2 | ||||||||||||||||||||||||||||||||
Accumulated other comprehensive income and retained earnings
|
n/a | n/a | n/a | 4,458.5 | (24.5 | ) | 4,434.0 | 3,060.2 | (53.8 | ) | 3,006.4 | 4,920.9 | (60.9 | ) | 4,860.0 | |||||||||||||||||||||||||||||||||
Consolidated Statements of Operations and Retained Earnings and
Comprehensive Income (as applicable)
|
||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Cost of goods sold
|
2,374.8 | 40.7 | 2,415.5 | 2,882.8 | (0.9 | ) | 2,881.9 | 4,081.8 | 46.6 | 4,128.4 | 2,631.6 | 11.4 | 2,643.0 | |||||||||||||||||||||||||||||||||||
Income taxes
|
158.1 | (15.8 | ) | 142.3 | 416.2 | 0.5 | 416.7 | 1,077.1 | (17.3 | ) | 1,059.8 | 83.5 | (4.3 | ) | 79.2 | |||||||||||||||||||||||||||||||||
Net income
|
631.8 | (24.9 | ) | 606.9 | 1,103.6 | 0.4 | 1,104.0 | 3,495.2 | (29.3 | ) | 3,465.9 | 987.8 | (7.1 | ) | 980.7 | |||||||||||||||||||||||||||||||||
Net income per share basic
|
2.03 | (0.08 | ) | 1.95 | 3.50 | - | 3.50 | 11.37 | (0.10 | ) | 11.27 | 3.34 | (0.02 | ) | 3.32 | |||||||||||||||||||||||||||||||||
Net income per share diluted
|
1.98 | (0.08 | ) | 1.90 | 3.40 | - | 3.40 | 11.01 | (0.09 | ) | 10.92 | 3.25 | (0.02 | ) | 3.23 | |||||||||||||||||||||||||||||||||
Comprehensive income
|
n/a | n/a | n/a | 2,413.5 | 0.4 | 2,413.9 | 1,974.2 | (29.3 | ) | 1,944.9 | 1,978.7 | (7.1 | ) | 1,971.6 | ||||||||||||||||||||||||||||||||||
Consolidated Statements of Cash Flow
|
||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Net income
|
631.8 | (24.9 | ) | 606.9 | 1,103.6 | 0.4 | 1,104.0 | 3,495.2 | (29.3 | ) | 3,465.9 | 987.8 | (7.1 | ) | 980.7 | |||||||||||||||||||||||||||||||||
Provision for future income tax
|
50.0 | (15.8 | ) | 34.2 | 119.6 | 0.5 | 120.1 | 82.2 | (17.3 | ) | 64.9 | 203.2 | (4.3 | ) | 198.9 | |||||||||||||||||||||||||||||||||
Other long-term liabilities
|
13.4 | 40.7 | 54.1 | (57.9 | ) | (0.9 | ) | (58.8 | ) | 2.3 | 46.6 | 48.9 | (8.0 | ) | 11.4 | 3.4 | ||||||||||||||||||||||||||||||||
Cash provided by operating activities
|
696.8 | - | 696.8 | 1,688.9 | - | 1,688.9 | 3,013.2 | - | 3,013.2 | 923.9 | - | 923.9 |
28
| Statements of operations and retained earnings: increase cost of goods sold by $1.5, reduce income tax expense by $0.6; there was no impact on basic or diluted earnings per share. | |
| Statements of cash flow: reduce net income by $0.9, increase adjustments to reconcile net income to cash provided by operating activities through reduction in provision for future income tax of $0.6 and increase in other long-term liabilities of $1.5; there was no net impact on cash flow for the period. | |
| Statements of comprehensive income: reduce net income and comprehensive income by $0.9. |
| Statements of operations and retained earnings: increase cost of goods sold by $4.5, reduce income tax expense by $1.8, reduce opening retained earnings by $53.8; basic and diluted earnings per share were reduced $0.01. | |
| Statements of cash flow: reduce net income by $2.7, increase adjustments to reconcile net income to cash provided by operating activities through reduction in provision for future income tax of $1.8 and increase in other long-term liabilities of $4.5; there was no net impact on cash flow for the period. | |
| Statements of comprehensive income: reduce net income and comprehensive income by $2.7. |
29
ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
30
Representative |
Performance |
|||||
Goal | 2010 Annual Target | to September 30, 2010 | ||||
Achieve no harm to people. | Reduce total site severity injury rate by 35 percent from 2008 levels by the end of 2012. | Total site severity injury rate was 61 percent below the 2008 annual level for the first nine months of 2010. The total site severity injury rate was 22 percent below the 2008 annual level for the first nine months of 2009 and 25 percent below the 2008 annual level by the end of 2009. | ||||
Achieve no damage to the environment. | Reduce total reportable releases, permit excursions and spills by 30 percent from 2009 levels. | Reportable release rate on an annualized basis decreased 11 percent, annualized permit excursions were down 24 percent and annualized spills were down 26 percent during the first nine months of 2010 compared to 2009 annual levels. There were five spills, four permit excursions and four reportable releases in the first nine months of 2010 compared to seven spills, four permit excursions and four reportable releases for the same period in 2009. | ||||
Maximize long-term shareholder value. | Exceed total shareholder return for our sector and companies on the DAXglobal Agribusiness Index for 2010. | PotashCorps total shareholder return was 33 percent in the first nine months of 2010 compared to our sector weighted average return (based on market capitalization) of 8 percent and the DAXglobal Agribusiness Index weighted average return (based on market capitalization) of 4 percent. | ||||
31
Company Guidance | Actual Results | |||
Earnings per share
|
$0.80 - $1.20 | $1.32 | ||
Effective tax rate, including discrete items
|
25% | 23% |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
% |
% |
|||||||||||||||||||||||||||||||
Dollars (millions) except per-share amounts | 2010 | 2009 | Change | Change | 2010 | 2009 | Change | Change | ||||||||||||||||||||||||
Sales
|
$ | 1,575.0 | $ | 1,099.1 | $ | 475.9 | 43 | $ | 4,726.4 | $ | 2,877.6 | $ | 1,848.8 | 64 | ||||||||||||||||||
Gross Margin
|
563.3 | 344.7 | 218.6 | 63 | 1,862.0 | 741.9 | 1,120.1 | 151 | ||||||||||||||||||||||||
Operating Income
|
539.2 | 356.9 | 182.3 | 51 | 1,870.3 | 858.1 | 1,012.2 | 118 | ||||||||||||||||||||||||
Net Income
|
402.7 | 247.9 | 154.8 | 62 | 1,323.9 | 741.5 | 582.4 | 79 | ||||||||||||||||||||||||
Net Income Per Share Diluted
|
1.32 | 0.82 | 0.50 | 61 | 4.34 | 2.44 | 1.90 | 78 | ||||||||||||||||||||||||
Other Comprehensive Income
|
880.2 | 123.9 | 756.3 | 610 | 114.1 | 565.4 | (451.3 | ) | (80 | ) | ||||||||||||||||||||||
32
33
Three Months Ended September 30 | ||||||||||||||||||||||||||||||||||||
Dollars (millions) | Tonnes (thousands) | Average per Tonne(1) | ||||||||||||||||||||||||||||||||||
2010 | 2009 | % Change | 2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||||||||||||||||||||||||
Sales
|
$ | 637.2 | $ | 423.4 | 50 | |||||||||||||||||||||||||||||||
Freight
|
40.1 | 16.8 | 139 | |||||||||||||||||||||||||||||||||
Transportation and distribution
|
15.0 | 9.2 | 63 | |||||||||||||||||||||||||||||||||
Net sales
|
$ | 582.1 | $ | 397.4 | 46 | |||||||||||||||||||||||||||||||
Manufactured product
|
||||||||||||||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||||||||||||||
North American
|
$ | 251.6 | $ | 111.0 | 127 | 710 | 266 | 167 | $ | 354.12 | $ | 417.38 | (15 | ) | ||||||||||||||||||||||
Offshore
|
328.2 | 283.7 | 16 | 1,187 | 748 | 59 | $ | 276.56 | $ | 379.24 | (27 | ) | ||||||||||||||||||||||||
579.8 | 394.7 | 47 | 1,897 | 1,014 | 87 | $ | 305.60 | $ | 389.24 | (21 | ) | |||||||||||||||||||||||||
Cost of goods sold
|
215.6 | 139.1 | 55 | $ | 113.61 | $ | 137.17 | (17 | ) | |||||||||||||||||||||||||||
Gross margin
|
364.2 | 255.6 | 42 | $ | 191.99 | $ | 252.07 | (24 | ) | |||||||||||||||||||||||||||
Other miscellaneous and purchased product
|
||||||||||||||||||||||||||||||||||||
Net sales
|
2.3 | 2.7 | (15 | ) | ||||||||||||||||||||||||||||||||
Cost of goods sold
|
3.0 | 6.9 | (57 | ) | ||||||||||||||||||||||||||||||||
Gross margin
|
(0.7 | ) | (4.2 | ) | (83 | ) | ||||||||||||||||||||||||||||||
Gross Margin
|
$ | 363.5 | $ | 251.4 | 45 | $ | 191.62 | $ | 247.93 | (23 | ) | |||||||||||||||||||||||||
(1) | Rounding differences may occur due to the use of whole dollars in per-tonne calculations. |
34
Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||
Dollars (millions) | Tonnes (thousands) | Average per Tonne(1) | ||||||||||||||||||||||||||||||||||
2010 | 2009 | % Change | 2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||||||||||||||||||||||||
Sales
|
$ | 2,170.4 | $ | 903.3 | 140 | |||||||||||||||||||||||||||||||
Freight
|
142.9 | 34.1 | 319 | |||||||||||||||||||||||||||||||||
Transportation and distribution
|
59.5 | 24.4 | 144 | |||||||||||||||||||||||||||||||||
Net sales
|
$ | 1,968.0 | $ | 844.8 | 133 | |||||||||||||||||||||||||||||||
Manufactured product
|
||||||||||||||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||||||||||||||
North American
|
$ | 913.9 | $ | 311.5 | 193 | 2,551 | 599 | 326 | $ | 358.19 | $ | 519.95 | (31 | ) | ||||||||||||||||||||||
Offshore
|
1,045.4 | 522.9 | 100 | 3,714 | 1,283 | 189 | $ | 281.46 | $ | 407.57 | (31 | ) | ||||||||||||||||||||||||
1,959.3 | 834.4 | 135 | 6,265 | 1,882 | 233 | $ | 312.70 | $ | 443.34 | (29 | ) | |||||||||||||||||||||||||
Cost of goods sold
|
688.3 | 306.3 | 125 | $ | 109.83 | $ | 162.73 | (33 | ) | |||||||||||||||||||||||||||
Gross margin
|
1,271.0 | 528.1 | 141 | $ | 202.87 | $ | 280.61 | (28 | ) | |||||||||||||||||||||||||||
Other miscellaneous and purchased product
|
||||||||||||||||||||||||||||||||||||
Net sales
|
8.7 | 10.4 | (16 | ) | ||||||||||||||||||||||||||||||||
Cost of goods sold
|
3.2 | 14.3 | (78 | ) | ||||||||||||||||||||||||||||||||
Gross margin
|
5.5 | (3.9 | ) | n/m | ||||||||||||||||||||||||||||||||
Gross Margin
|
$ | 1,276.5 | $ | 524.2 | 144 | $ | 203.75 | $ | 278.53 | (27 | ) | |||||||||||||||||||||||||
(1) | Rounding differences may occur due to the use of whole dollars in per-tonne calculations. | |
n/m | = not meaningful |
Three Months Ended September 30 |
Nine Months Ended September 30 |
||||||||||||||||||||||||||||||||||||
Dollars (millions) | 2010 vs. 2009 | 2010 vs. 2009 | |||||||||||||||||||||||||||||||||||
Change in |
Change in |
||||||||||||||||||||||||||||||||||||
Prices/Costs | Prices/Costs | ||||||||||||||||||||||||||||||||||||
Change in Sales |
Cost of |
Change in |
Cost of |
||||||||||||||||||||||||||||||||||
Volumes | Net Sales | Goods Sold | Total | Sales Volumes | Net Sales | Goods Sold | Total | ||||||||||||||||||||||||||||||
Manufactured product
|
|||||||||||||||||||||||||||||||||||||
North American
|
$ | 138.7 | $ | (44.9 | ) | $ | 4.4 | $ | 98.2 | $ | 819.2 | $ | (412.8 | ) | $ | 39.0 | $ | 445.4 | |||||||||||||||||||
Offshore
|
65.4 | (55.3 | ) | 0.4 | 10.5 | 807.6 | (468.4 | ) | (41.7 | ) | 297.5 | ||||||||||||||||||||||||||
Change in market mix
|
(35.9 | ) | 37.3 | (1.5 | ) | (0.1 | ) | (50.9 | ) | 62.7 | (11.8 | ) | - | ||||||||||||||||||||||||
Total manufactured product
|
$ | 168.2 | $ | (62.9 | ) | $ | 3.3 | $ | 108.6 | $ | 1,575.9 | $ | (818.5 | ) | $ | (14.5 | ) | $ | 742.9 | ||||||||||||||||||
Other miscellaneous and
purchased product |
3.5 | 9.4 | |||||||||||||||||||||||||||||||||||
Total
|
$ | 112.1 | $ | 752.3 | |||||||||||||||||||||||||||||||||
35
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
% |
% |
|||||||||||||||||||||||||||||||
2010 | 2009 | Change | Change | 2010 | 2009 | Change | Change | |||||||||||||||||||||||||
China
|
10 | 1 | 9 | 900 | 12 | 8 | 4 | 50 | ||||||||||||||||||||||||
India
|
16 | 39 | (23 | ) | (59 | ) | 14 | 31 | (17 | ) | (55 | ) | ||||||||||||||||||||
Asia (excluding China and India)
|
28 | 34 | (6 | ) | (18 | ) | 42 | 41 | 1 | 2 | ||||||||||||||||||||||
Latin America
|
38 | 20 | 18 | 90 | 25 | 14 | 11 | 79 | ||||||||||||||||||||||||
Oceania, Europe and Other
|
8 | 6 | 2 | 33 | 7 | 6 | 1 | 17 | ||||||||||||||||||||||||
100 | 100 | 100 | 100 | |||||||||||||||||||||||||||||
36
Net Sales Prices | Sales Volumes | Cost of Goods Sold | ||
â Lower
average realized price for the quarter reflected new pricing
levels established in major markets following the unprecedented
decline in potash demand during the global economic downturn in
2009.
|
á Farmers
increased applications and fertilizer dealers increased
purchases due to supportive crop prices and the need to address
potash nutrient shortfalls (soil and distribution chain
inventories fell significantly during 2009 and have not been
replenished in 2010). á North
American shipments increased significantly due to rising crop
prices, low customer potash inventories, renewed farmer/dealer
confidence and an anticipated strong fall application. á Canpotex
shipments to offshore markets increased due to supportive crop
prices and low customer inventories. Canpotex
sales to Latin America and China significantly increased (as a
percentage of total sales) while Canpotex sales to India
decreased. |
á Fewer
shutdown costs incurred (17 weeks in 2010 compared to 28 in
2009). Shutdown weeks in 2010 related to expansion activities
while 2009 shutdown weeks primarily were the result of matching
supply to demand. á Royalty
costs lower due to lower average North American listed sales
prices per tonne. â Personnel
costs higher due to higher staff levels (anticipating the ramp
up to expansion levels) and higher wages. â The
Canadian dollar strengthened relative to the US dollar.
|
37
Net Sales Prices | Sales Volumes | Cost of Goods Sold | ||
â Substantial
decline in consumption during the 2009 global economic downturn
pressured pricing and resulted in new lower pricing levels being
established in 2010.
|
á Volumes
were up significantly due to positive global crop prices, the
need to address potash-depleted soil and favorable conditions in
Brazil (for spring planting) and the US (for fall
application). á Canpotex
reached short-term agreements with major customers in China and
India throughout the first nine months of 2010 (China did not
have a contract in 2009 while India did not have a contract in
the first half of 2009). á Latin
Americas proportion of total volumes increased more than
any other market due to low inventories entering 2010 and
favorable crop economics. India purchased more in 2010 but
accounted for a larger proportion of Canpotex sales in 2009. Most
buyers purchases were for consumption rather than
inventory restocking.
|
â Personnel
costs higher due to higher wages. â The
Canadian dollar strengthened relative to the US dollar. â Increased
maintenance costs with higher production levels. á Royalty
costs declined due to lower average North American listed sales
prices per tonne. á Fewer
shutdown costs incurred (35 weeks in 2010 compared to
117 weeks in 2009). North
American cost of goods sold variance was positive as our lowest
cost mine, Rocanville SK, comprised a larger proportion of
production while offshore cost of goods sold variance was
negative due to more of that product coming from our other
mines. |
38
Three Months Ended September 30 | ||||||||||||||||||||||||||||||||||||
Dollars (millions) | Tonnes (thousands) | Average per Tonne(1) | ||||||||||||||||||||||||||||||||||
2010 | 2009 | % Change | 2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||||||||||||||||||||||||
Sales
|
$ | 536.0 | $ | 357.4 | 50 | |||||||||||||||||||||||||||||||
Freight
|
30.6 | 24.3 | 26 | |||||||||||||||||||||||||||||||||
Transportation and distribution
|
13.5 | 13.9 | (3 | ) | ||||||||||||||||||||||||||||||||
Net sales
|
$ | 491.9 | $ | 319.2 | 54 | |||||||||||||||||||||||||||||||
Manufactured product
|
||||||||||||||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||||||||||||||
Fertilizer liquids
|
$ | 122.5 | $ | 68.1 | 80 | 324 | 255 | 27 | $ | 378.20 | $ | 267.58 | 41 | |||||||||||||||||||||||
Fertilizer solids
|
191.4 | 89.6 | 114 | 437 | 334 | 31 | $ | 437.34 | $ | 267.71 | 63 | |||||||||||||||||||||||||
Feed
|
79.5 | 60.5 | 31 | 170 | 143 | 19 | $ | 467.30 | $ | 424.69 | 10 | |||||||||||||||||||||||||
Industrial
|
91.7 | 95.7 | (4 | ) | 157 | 150 | 5 | $ | 585.50 | $ | 640.06 | (9 | ) | |||||||||||||||||||||||
485.1 | 313.9 | 55 | 1,088 | 882 | 23 | $ | 445.77 | $ | 356.24 | 25 | ||||||||||||||||||||||||||
Cost of goods sold
|
389.9 | 275.4 | 42 | $ | 358.27 | $ | 312.59 | 15 | ||||||||||||||||||||||||||||
Gross margin
|
95.2 | 38.5 | 147 | $ | 87.50 | $ | 43.65 | 100 | ||||||||||||||||||||||||||||
Other miscellaneous and purchased product | ||||||||||||||||||||||||||||||||||||
Net sales
|
6.8 | 5.3 | 28 | |||||||||||||||||||||||||||||||||
Cost of goods sold
|
2.5 | 1.1 | 127 | |||||||||||||||||||||||||||||||||
Gross margin
|
4.3 | 4.2 | 2 | |||||||||||||||||||||||||||||||||
Gross Margin
|
$ | 99.5 | $ | 42.7 | 133 | $ | 91.45 | $ | 48.41 | 89 | ||||||||||||||||||||||||||
(1) | Rounding differences may occur due to the use of whole dollars in per-tonne calculations. |
Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||
Dollars (millions) | Tonnes (thousands) | Average per Tonne(1) | ||||||||||||||||||||||||||||||||||
2010 | 2009 | % Change | 2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||||||||||||||||||||||||
Sales
|
$ | 1,300.8 | $ | 1,012.0 | 29 | |||||||||||||||||||||||||||||||
Freight
|
75.2 | 58.3 | 29 | |||||||||||||||||||||||||||||||||
Transportation and distribution
|
31.3 | 34.8 | (10 | ) | ||||||||||||||||||||||||||||||||
Net sales
|
$ | 1,194.3 | $ | 918.9 | 30 | |||||||||||||||||||||||||||||||
Manufactured product
|
||||||||||||||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||||||||||||||
Fertilizer liquids
|
$ | 285.4 | $ | 155.8 | 83 | 791 | 528 | 50 | $ | 360.65 | $ | 295.20 | 22 | |||||||||||||||||||||||
Fertilizer solids
|
414.8 | 262.5 | 58 | 945 | 877 | 8 | $ | 438.82 | $ | 299.01 | 47 | |||||||||||||||||||||||||
Feed
|
218.6 | 201.2 | 9 | 483 | 396 | 22 | $ | 452.18 | $ | 508.70 | (11 | ) | ||||||||||||||||||||||||
Industrial
|
255.8 | 286.5 | (11 | ) | 448 | 400 | 12 | $ | 571.89 | $ | 717.47 | (20 | ) | |||||||||||||||||||||||
1,174.6 | 906.0 | 30 | 2,667 | 2,201 | 21 | $ | 440.37 | $ | 411.72 | 7 | ||||||||||||||||||||||||||
Cost of goods sold
|
959.3 | 845.6 | 13 | $ | 359.64 | $ | 384.28 | (6 | ) | |||||||||||||||||||||||||||
Gross margin
|
215.3 | 60.4 | 256 | $ | 80.73 | $ | 27.44 | 194 | ||||||||||||||||||||||||||||
Other miscellaneous and purchased product | ||||||||||||||||||||||||||||||||||||
Net sales
|
19.7 | 12.9 | 53 | |||||||||||||||||||||||||||||||||
Cost of goods sold
|
7.4 | 4.3 | 72 | |||||||||||||||||||||||||||||||||
Gross margin
|
12.3 | 8.6 | 43 | |||||||||||||||||||||||||||||||||
Gross Margin
|
$ | 227.6 | $ | 69.0 | 230 | $ | 85.34 | $ | 31.35 | 172 | ||||||||||||||||||||||||||
(1) | Rounding differences may occur due to the use of whole dollars in per-tonne calculations. |
39
Three Months Ended September 30 |
Nine Months Ended September 30 |
||||||||||||||||||||||||||||||||||||
Dollars (millions) | 2010 vs. 2009 | 2010 vs. 2009 | |||||||||||||||||||||||||||||||||||
Change in |
Change in |
||||||||||||||||||||||||||||||||||||
Prices/Costs | Prices/Costs | ||||||||||||||||||||||||||||||||||||
Change in Sales |
Cost of |
Change in Sales |
Cost of |
||||||||||||||||||||||||||||||||||
Volumes | Net Sales | Goods Sold | Total | Volumes | Net Sales | Goods Sold | Total | ||||||||||||||||||||||||||||||
Manufactured product
|
|||||||||||||||||||||||||||||||||||||
Fertilizer liquids
|
$ | 10.0 | $ | 38.9 | $ | (14.7 | ) | $ | 34.2 | $ | 15.6 | $ | 51.8 | $ | (9.6 | ) | $ | 57.8 | |||||||||||||||||||
Fertilizer solids
|
11.1 | 69.4 | (45.0 | ) | 35.5 | (10.5 | ) | 131.2 | 2.4 | 123.1 | |||||||||||||||||||||||||||
Feed
|
3.6 | 9.9 | (9.6 | ) | 3.9 | 23.8 | (25.2 | ) | 41.0 | 39.6 | |||||||||||||||||||||||||||
Industrial
|
2.6 | (7.2 | ) | (12.4 | ) | (17.0 | ) | 24.6 | (65.1 | ) | (25.1 | ) | (65.6 | ) | |||||||||||||||||||||||
Change in market mix
|
15.6 | (15.5 | ) | - | 0.1 | 16.3 | (16.3 | ) | - | - | |||||||||||||||||||||||||||
Total manufactured product
|
$ | 42.9 | $ | 95.5 | $ | (81.7 | ) | $ | 56.7 | $ | 69.8 | $ | 76.4 | $ | 8.7 | $ | 154.9 | ||||||||||||||||||||
Other miscellaneous and purchased product
|
0.1 | 3.7 | |||||||||||||||||||||||||||||||||||
Total
|
$ | 56.8 | $ | 158.6 | |||||||||||||||||||||||||||||||||
40
Net Sales Prices | Sales Volumes | Cost of Goods Sold | ||
á Positive
market conditions, higher grain prices and tighter supplies of
available product resulted in improved liquid and solid
fertilizer prices. á Feed
prices were higher as announced price increases in the second
quarter of 2010 were realized during the third quarter. â Certain
industrial products are contracted on a cost plus or
market-index scale and trail current market conditions, which
resulted in a decline from last years third
quarter. |
á Both
solid and liquid fertilizers increased in anticipation of a
strong domestic fall application season. Solid fertilizers were
affected by offshore vessel delays from the previous quarter
that carried into the current quarter. á Feed
volumes increased compared to last years low total as
customers worked off inventories in 2009. á Industrial
sales volumes increased due to an improvement in demand for
purified phosphoric acid used in downstream food and other
commercial markets. |
â Costs
were higher due to sulfur (up 51 percent), ammonia (up
34 percent) and higher costs of mining phosphate rock (due
to a transition to new mining practices at Aurora NC). â Solid
fertilizer was impacted by a shut down at Lima OH as ammonia had
to be transported from further away. â Industrial
variance was also impacted by higher rock costs at Geismar LA
(demurrage charges incurred due to weather delays at rock
shipping points which also resulted in production delays) and a
maintenance turnaround. |
Net Sales Prices | Sales Volumes | Cost of Goods Sold | ||
á Liquid
and solid fertilizer prices increased due to positive farm
economics and tightening supply. â Prices
for feed products, which typically lag solid and liquid
phosphate fertilizer, did not immediately reflect the sharp
decline in 2009 prices, resulting in a decrease in 2010. â Industrial
prices decreased as a result of certain contracts being based on
prior year input costs which were significantly lower in 2009 as
compared to being higher in 2008. |
á Volumes
for all major product categories increased due to favorable crop
commodity prices and low inventories throughout the supply chain
and improved buyer sentiment. á North
American liquid fertilizer volumes increased substantially due
to low carryover of customer inventories at the start of the
year and a favorable spring application season. á Demand
for feed products improved due to better economics in the beef,
pork and poultry industries in 2010 while in 2009 customers
worked down inventories. |
â Drag-line
moves and a change in mining practice increased costs of mining
phosphate rock. á Solid
fertilizer and feed variances were positive due to lower sulfur
costs (down 3 percent), though solid fertilizer was
negatively affected by higher ammonia costs (up
21 percent). â Industrial
variance was negatively affected by higher rock costs at Geismar
LA (demurrage charges). |
41
Three Months Ended September 30 | ||||||||||||||||||||||||||||||||||||
Dollars (millions) | Tonnes (thousands) | Average per Tonne(1) | ||||||||||||||||||||||||||||||||||
2010 | 2009 | % Change | 2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||||||||||||||||||||||||
Sales
|
$ | 401.8 | $ | 318.3 | 26 | |||||||||||||||||||||||||||||||
Freight
|
10.4 | 12.6 | (17 | ) | ||||||||||||||||||||||||||||||||
Transportation and distribution
|
9.4 | 13.2 | (29 | ) | ||||||||||||||||||||||||||||||||
Net sales
|
$ | 382.0 | $ | 292.5 | 31 | |||||||||||||||||||||||||||||||
Manufactured product
|
||||||||||||||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||||||||||||||
Ammonia
|
$ | 162.5 | $ | 104.2 | 56 | 459 | 457 | - | $ | 354.05 | $ | 228.26 | 55 | |||||||||||||||||||||||
Urea
|
91.4 | 100.7 | (9 | ) | 302 | 367 | (18 | ) | $ | 302.45 | $ | 274.14 | 10 | |||||||||||||||||||||||
Nitrogen solutions/Nitric acid/Ammonium nitrate
|
96.1 | 75.7 | 27 | 528 | 553 | (5 | ) | $ | 181.91 | $ | 136.78 | 33 | ||||||||||||||||||||||||
350.0 | 280.6 | 25 | 1,289 | 1,377 | (6 | ) | $ | 271.40 | $ | 203.73 | 33 | |||||||||||||||||||||||||
Cost of goods sold
|
258.0 | 234.3 | 10 | $ | 200.03 | $ | 170.11 | 18 | ||||||||||||||||||||||||||||
Gross margin
|
92.0 | 46.3 | 99 | $ | 71.37 | $ | 33.62 | 112 | ||||||||||||||||||||||||||||
Other miscellaneous and purchased product | ||||||||||||||||||||||||||||||||||||
Net sales
|
32.0 | 11.9 | 169 | |||||||||||||||||||||||||||||||||
Cost of goods sold
|
23.7 | 7.6 | 212 | |||||||||||||||||||||||||||||||||
Gross margin
|
8.3 | 4.3 | 93 | |||||||||||||||||||||||||||||||||
Gross Margin
|
$ | 100.3 | $ | 50.6 | 98 | $ | 77.81 | $ | 36.75 | 112 | ||||||||||||||||||||||||||
(1) | Rounding differences may occur due to the use of whole dollars in per-tonne calculations. |
Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||
Dollars (millions) | Tonnes (thousands) | Average per Tonne(1) | ||||||||||||||||||||||||||||||||||
2010 | 2009 | % Change | 2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||||||||||||||||||||||||
Sales
|
$ | 1,255.2 | $ | 962.3 | 30 | |||||||||||||||||||||||||||||||
Freight
|
32.3 | 37.8 | (15 | ) | ||||||||||||||||||||||||||||||||
Transportation and distribution
|
32.0 | 41.8 | (23 | ) | ||||||||||||||||||||||||||||||||
Net sales
|
$ | 1,190.9 | $ | 882.7 | 35 | |||||||||||||||||||||||||||||||
Manufactured product
|
||||||||||||||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||||||||||||||
Ammonia
|
$ | 486.9 | $ | 319.0 | 53 | 1,350 | 1,386 | (3 | ) | $ | 360.69 | $ | 230.17 | 57 | ||||||||||||||||||||||
Urea
|
312.8 | 315.2 | (1 | ) | 970 | 1,092 | (11 | ) | $ | 322.40 | $ | 288.58 | 12 | |||||||||||||||||||||||
Nitrogen solutions/Nitric acid/Ammonium nitrate
|
295.6 | 217.9 | 36 | 1,609 | 1,357 | 19 | $ | 183.77 | $ | 160.60 | 14 | |||||||||||||||||||||||||
1,095.3 | 852.1 | 29 | 3,929 | 3,835 | 2 | $ | 278.79 | $ | 222.19 | 25 | ||||||||||||||||||||||||||
Cost of goods sold
|
757.6 | 712.9 | 6 | $ | 192.84 | $ | 185.89 | 4 | ||||||||||||||||||||||||||||
Gross margin
|
337.7 | 139.2 | 143 | $ | 85.95 | $ | 36.30 | 137 | ||||||||||||||||||||||||||||
Other miscellaneous and purchased product | ||||||||||||||||||||||||||||||||||||
Net sales
|
95.6 | 30.6 | 212 | |||||||||||||||||||||||||||||||||
Cost of goods sold
|
75.4 | 21.1 | 257 | |||||||||||||||||||||||||||||||||
Gross margin
|
20.2 | 9.5 | 113 | |||||||||||||||||||||||||||||||||
Gross Margin
|
$ | 357.9 | $ | 148.7 | 141 | $ | 91.09 | $ | 38.77 | 135 | ||||||||||||||||||||||||||
(1) | Rounding differences may occur due to the use of whole dollars in per-tonne calculations. |
42
Three Months Ended September 30 |
Nine Months Ended September 30 |
||||||||||||||||||||||||||||||||||||
Dollars (millions) | 2010 vs. 2009 | 2010 vs. 2009 | |||||||||||||||||||||||||||||||||||
Change in |
Change in |
||||||||||||||||||||||||||||||||||||
Prices/Costs | Prices/Costs | ||||||||||||||||||||||||||||||||||||
Change in Sales |
Cost of |
Change in |
Cost of |
||||||||||||||||||||||||||||||||||
Volumes | Net Sales | Goods Sold | Total | Sales Volumes | Net Sales | Goods Sold | Total | ||||||||||||||||||||||||||||||
Manufactured product
|
|||||||||||||||||||||||||||||||||||||
Ammonia
|
$ | 6.0 | $ | 57.7 | $ | (37.2 | ) | $ | 26.5 | $ | 2.4 | $ | 176.2 | $ | (64.2 | ) | $ | 114.4 | |||||||||||||||||||
Urea
|
(5.6 | ) | 9.1 | (9.6 | ) | (6.1 | ) | (13.2 | ) | 32.8 | (7.6 | ) | 12.0 | ||||||||||||||||||||||||
Solutions, NA, AN
|
1.0 | 29.0 | (7.5 | ) | 22.5 | 22.8 | 37.3 | 7.9 | 68.0 | ||||||||||||||||||||||||||||
Hedge
|
- | - | 2.8 | 2.8 | - | - | 4.1 | 4.1 | |||||||||||||||||||||||||||||
Change in market mix
|
5.0 | (5.0 | ) | - | - | 23.9 | (23.9 | ) | - | - | |||||||||||||||||||||||||||
Total manufactured product
|
$ | 6.4 | $ | 90.8 | $ | (51.5 | ) | $ | 45.7 | $ | 35.9 | $ | 222.4 | $ | (59.8 | ) | $ | 198.5 | |||||||||||||||||||
Other miscellaneous and purchased product
|
4.0 | 10.7 | |||||||||||||||||||||||||||||||||||
Total
|
$ | 49.7 | $ | 209.2 | |||||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
Sales Tonnes |
Sales Tonnes |
|||||||||||||||||||||||||||||||
(Thousands) | Price per Tonne | (Thousands) | Price per Tonne | |||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||
Fertilizer
|
470 | 584 | $ | 252.44 | $ | 208.31 | 1,495 | 1,638 | $ | 265.36 | $ | 236.82 | ||||||||||||||||||||
Feed
|
6 | 7 | $ | 370.92 | $ | 388.04 | 20 | 21 | $ | 392.82 | $ | 403.71 | ||||||||||||||||||||
Industrial
|
813 | 786 | $ | 281.64 | $ | 198.68 | 2,414 | 2,176 | $ | 286.19 | $ | 209.38 | ||||||||||||||||||||
1,289 | 1,377 | $ | 271.40 | $ | 203.73 | 3,929 | 3,835 | $ | 278.79 | $ | 222.19 | |||||||||||||||||||||
43
Net Sales Prices | Sales Volumes | Cost of Goods Sold | ||
á Ammonia
and urea increases were the result of recovering demand for both
industrial and fertilizer products and tighter producer
supplies. á Nitrogen
solutions, nitric acid and ammonium nitrate all increased due to
tighter supply and in the case of ammonium nitrates,
higher-priced contracts.
|
Ammonia
volumes were flat as increased demand in the US was offset by
reduced available supply due to an extended turnaround at Lima
OH. â Urea
volumes decreased due to a turnaround at Lima OH. â Nitrogen
solutions volumes decreased due to less production being
available from Geismar LA. |
â Average
natural gas costs in production, including hedge, increased
36 percent. Natural gas costs in Trinidad production
increased 61 percent (contract prices primarily indexed to
ammonia prices) while our US spot costs for natural gas in
production increased 36 percent. á Turnarounds
at Trinidad and Lima OH increased costs of production.
|
Net Sales Prices | Sales Volumes | Cost of Goods Sold | ||
á Realized
prices increased as a result of tight global inventory supplies,
higher production costs in key exporting regions (the Ukraine
and Western Europe) and stronger industrial demand in 2010.
|
â Ammonia
volumes declined due to higher internal consumption which
resulted in fewer tonnes being available for external sales. â US
produced urea volumes decreased due to less supply being
available for sale (lost production from an interruption at
Augusta GA, reduced production at Lima in 2010 and lower
inventories) and offshore urea sales declining in favor of other
nitrogen products. á Nitrogen
solutions volumes increased as a result of better planting
conditions. á Nitric
acid volumes increased as a result of a stronger US economy and
improved industrial demand for downstream
products. |
â Average
natural gas costs in production, including hedge, increased
32 percent. Natural gas costs in Trinidad production
increased 67 percent while our US spot costs for natural
gas in production increased 24 percent. Ammonia
and urea cost of goods sold variances were negative while the
other product lines were positive due to relatively lower-cost
ammonia (which is purchased or transferred and not produced)
being used in the other product lines at Geismar LA.
|
44
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
% |
% |
|||||||||||||||||||||||||||||||
Dollars (millions) | 2010 | 2009 | Change | Change | 2010 | 2009 | Change | Change | ||||||||||||||||||||||||
Selling and administrative
|
$ | 75.2 | $ | 35.9 | $ | 39.3 | 109 | $ | 169.7 | $ | 132.7 | $ | 37.0 | 28 | ||||||||||||||||||
Provincial mining and other taxes
|
16.2 | 2.1 | 14.1 | 671 | 55.9 | 17.0 | 38.9 | 229 | ||||||||||||||||||||||||
Foreign exchange (gain) loss
|
(1.7 | ) | (9.0 | ) | 7.3 | (81 | ) | 7.2 | (1.3 | ) | 8.5 | n/m | ||||||||||||||||||||
Other income
|
65.6 | 41.2 | 24.4 | 59 | 241.1 | 264.6 | (23.5 | ) | (9 | ) | ||||||||||||||||||||||
Interest expense
|
16.5 | 31.1 | (14.6 | ) | (47 | ) | 69.7 | 80.8 | (11.1 | ) | (14 | ) | ||||||||||||||||||||
Income taxes
|
120.0 | 77.9 | 42.1 | 54 | 476.7 | 35.8 | 440.9 | n/m |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
Dollars (millions) |
% |
% |
||||||||||||||||||||||||||||||
except percentage amounts | 2010 | 2009 | Change | Change | 2010 | 2009 | Change | Change | ||||||||||||||||||||||||
Long-term debt obligations, including current portion
|
||||||||||||||||||||||||||||||||
Weighted average outstanding
|
$ | 3,357.7 | $ | 3,266.6 | $ | 91.1 | 3 | $ | 3,432.8 | $ | 2,884.6 | $ | 548.2 | 19 | ||||||||||||||||||
Weighted average interest rate
|
5.7% | 4.8% | 0.9% | 19 | 5.6% | 4.7% | 0.9% | 19 | ||||||||||||||||||||||||
Short-term debt obligations
|
||||||||||||||||||||||||||||||||
Weighted average outstanding
|
$ | 387.1 | $ | 694.1 | $ | (307.0) | (44) | $ | 483.2 | $ | 591.2 | $ | (108.0) | (18) | ||||||||||||||||||
Weighted average interest rate
|
0.6% | 0.9% | (0.3)% | (33) | 0.5% | 1.3% | (0.8)% | (62) |
45
September 30, 2010 |
||||||||||||||||
Payments Due By Period | ||||||||||||||||
Dollars (millions) | Total | Within 1 Year | 1 to 3 Years | 3 to 5 Years | Over 5 Years | |||||||||||
Long-term debt obligations
|
$ | 3,357.7 | $ | 601.8 | $ | 255.9 | $ | 1,000.0 | $ | 1,500.0 | ||||||
Estimated interest payments on long-term debt obligations
|
1,590.5 | 193.8 | 287.0 | 237.5 | 872.2 | |||||||||||
Operating leases
|
584.6 | 85.7 | 157.0 | 136.4 | 205.5 | |||||||||||
Purchase commitments
|
682.2 | 255.1 | 171.0 | 107.3 | 148.8 | |||||||||||
Capital commitments
|
108.4 | 30.0 | 52.0 | 7.6 | 18.8 | |||||||||||
Other commitments
|
599.8 | 390.3 | 202.7 | 6.8 | - | |||||||||||
Other long-term liabilities
|
1,572.4 | 85.1 | 105.1 | 73.8 | 1,308.4 | |||||||||||
Total
|
$ | 8,495.6 | $ | 1,641.8 | $ | 1,230.7 | $ | 1,569.4 | $ | 4,053.7 | ||||||
46
Expected
Completion(1) |
Forecasted |
|||||||||||||||||
CDN Dollars (millions) | 2010 Forecast | Total Forecast | Started | (Description) | Remaining Spending | |||||||||||||
Allan, Saskatchewan
|
$ | 180 | $ | 550 | 2008 | 2012 (general expansion) | $ | 370 | ||||||||||
Cory I, Saskatchewan
|
$ | 500 | $ | 1,455 | 2007 | 2010 (red potash mill) | $ | 150 | ||||||||||
Cory II,
Saskatchewan(2)
|
2008 | 2012 (general expansion) | ||||||||||||||||
Picadilly, New Brunswick
|
$ | 420 | $ | 1,660 | 2007 | 2012 (mine shaft and mill) | $ | 780 | ||||||||||
Rocanville, Saskatchewan
|
$ | 440 | $ | 2,800 | 2008 | 2014 (mine shaft and mill) | $ | 2,100 |
(1) | Excludes ramp up time. We expect these projects will be fully ramped up by the end of 2015, provided market conditions warrant. | |
(2) | 2010 forecast, total forecast and forecasted remaining spending included in Cory I. |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
% |
% |
|||||||||||||||||||||||||||||||
Dollars (millions) | 2010 | 2009 | Change | Change | 2010 | 2009 | Change | Change | ||||||||||||||||||||||||
Cash provided by operating activities
|
$ | 503.8 | $ | 320.8 | $ | 183.0 | 57 | $ | 2,199.1 | $ | 355.8 | $ | 1,843.3 | 518 | ||||||||||||||||||
Cash used in investing activities
|
(506.6 | ) | (450.0 | ) | (56.6 | ) | 13 | (1,843.6 | ) | (1,077.9 | ) | (765.7 | ) | 71 | ||||||||||||||||||
Cash (used in) provided by financing activities
|
(4.1 | ) | 149.1 | (153.2 | ) | n/m | (381.1 | ) | 836.5 | (1,217.6 | ) | n/m |
% |
||||||||||||||||
Dollars (millions) except ratio amounts | September 30, 2010 | December 31, 2009 | Change | Change | ||||||||||||
Current assets
|
$ | 1,975.0 | $ | 2,271.7 | $ | (296.7 | ) | (13 | ) | |||||||
Current liabilities
|
$ | (2,200.2 | ) | $ | (1,577.4 | ) | $ | (622.8 | ) | 39 | ||||||
Working capital
|
$ | (225.2 | ) | $ | 694.3 | $ | (919.5 | ) | n/m | |||||||
Current ratio
|
0.90 | 1.44 | (0.54 | ) | (38 | ) |
47
September 30, 2010 | ||||||||||||
Total |
Amount Outstanding |
Amount |
||||||||||
Dollars (millions) | Amount | and Committed | Available | |||||||||
Credit
facilities(1)
|
$ | 3,250.0 | $ | 394.8 | $ | 2,855.2 | ||||||
Line of credit
|
75.0 | 35.3 | (2) | 39.7 |
(1) | The company increased the amount available under its commercial paper program from $750.0 million to $1,500.0 million in the second quarter of 2010. The amount available under the commercial paper program is limited to the availability of backup funds under the credit facilities. Included in the amount outstanding and committed is $394.8 million of commercial paper. Per the terms of the agreements, the commercial paper outstanding and committed, as applicable, is based on the US dollar balance or equivalent thereof in lawful money of other currencies at the time of issue; therefore, subsequent changes in the exchange rate applicable to Canadian dollar denominated commercial paper have no impact on this balance. | |
(2) | Letters of credit committed. |
48
49
Dollars (millions) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||||||||||||||||||||||||||||
except per-share amounts | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | ||||||||||||||||||||||||||||||||
Sales
|
$ | 1,575.0 | $ | 1,437.8 | $ | 1,713.6 | $ | 1,099.1 | $ | 1,099.1 | $ | 856.0 | $ | 922.5 | $ | 1,870.6 | ||||||||||||||||||||||||
Gross margin
|
563.3 | 583.6 | 715.1 | 272.7 | 344.7 | 169.1 | 228.1 | 828.1 | ||||||||||||||||||||||||||||||||
Net income
|
402.7 | 472.0 | 449.2 | 239.2 | 247.9 | 186.2 | 307.4 | 759.8 | ||||||||||||||||||||||||||||||||
Net income per share basic
|
1.36 | 1.59 | 1.52 | 0.81 | 0.84 | 0.63 | 1.04 | 2.53 | ||||||||||||||||||||||||||||||||
Net income per share diluted
|
1.32 | 1.55 | 1.47 | 0.79 | 0.82 | 0.61 | 1.01 | 2.47 | ||||||||||||||||||||||||||||||||
50
Key Activities | Milestones | Status | ||||
Accounting policies and procedures: | ||||||
Identify differences between IFRSs and the companys existing policies and procedures
Analyze and select ongoing policies where alternatives are permitted
Analyze and determine which IFRS 1 exemptions will be taken on transition to IFRSs
Revise accounting policy and procedures manuals
|
Senior management approval and audit committee review of policy decisions by Q1 2010
Revised accounting policy and procedures manuals in place by changeover date
|
Certain major accounting policy decisions were preliminarily approved by senior management and reviewed by the audit committee of the Board of Directors in Q1 2010. Some accounting policy choices are still being analyzed and not all decisions have been made where accounting policy choices are available
Revisions to accounting and procedures manuals are being drafted as work on each area of IFRSs progresses
|
||||
Financial statement preparation:
|
||||||
Prepare financial statements and note disclosures in compliance with IFRSs
Quantify the effects of converting to IFRSs
Prepare first-time adoption reconciliations required under IFRS 1
|
Senior management approval and audit committee review of preliminary pro forma financial statements and disclosures by Q1 2010
Senior management approval and audit committee review of full proforma financial statements prior to changeover
|
Preliminary pro forma 2009 financial statements were reviewed by the audit committee in Q1 2010. To prepare for the possible early adoption of IFRSs in 2010, rather than at January 1, 2011, restated MD&A, financial statements and note disclosures for Q1 2010 have been preliminarily drafted and are being reviewed internally
Draft note disclosures have been prepared for each area of IFRSs
Effects of the conversion are being quantified as work on each area of IFRSs progresses see summaries of estimated adjustments at the end of this section
|
||||
51
Key Activities | Milestones | Status | ||||
Training and communication: | ||||||
Provide topic-specific training to key employees involved with implementation
Develop awareness of the likely impacts of the transition throughout the company
Provide company-specific training on revised policies and procedures to affected personnel
Provide timely communication of the impacts of converting to IFRSs to our external stakeholders
|
Training for IFRSs work stream members provided as work on each IFRSs topic commences
Company-specific detailed training implemented prior to changeover date
Impacts of converting to IFRSs communicated prior to changeover
|
Key employees involved with implementation have completed or are in the process of completing topic-specific training
Regular awareness presentations are provided at various forums to prepare personnel for the changeover
Training is being conducted using a three-tiered approach with more detailed training provided for practitioners and higher-level training provided for other personnel. Approximately 80 percent of identified detailed training requirements have been completed with the remainder planned to be completed in Q4 2010. Group training content has been developed and is planned to be delivered in December 2010
Communication to external stakeholders has been ongoing through our MD&A disclosures. Further refinement of expected impacts of the IFRSs conversion will occur in each period up to adoption of IFRSs
|
||||
Business impacts:
|
||||||
Identify impacts of conversion on contracts including financial covenants and compensation arrangements
Identify impacts of conversion on taxation
|
Impacts on contracts identified by Q4 2009
Taxation impacts identified prior to changeover
|
Identification of impacts on contracts is complete. Adoption of IFRSs is not expected to have any material impact on the companys contracts
Income tax accounting impacts have been identified, however quantification of all differences has not yet been finalized. Impacts of the IFRSs conversion on the companys tax compliance processes are still being assessed
|
||||
IT systems:
|
||||||
Identify changes required to IT systems and implement solutions
Determine and implement solution for capturing financial information under Canadian GAAP, US GAAP and IFRSs during the year of transition to IFRSs (for comparative information)
|
Necessary changes to IT systems implemented by changeover date
Solution for capturing financial information under multiple sets of GAAP implemented by 2009
|
Required changes to IT systems have been identified and are being addressed in conjunction with an upgrade to the companys financial information system
IFRSs record-keeping has been implemented within the companys financial information system to enable the capturing of financial information under multiple sets of accounting principles
|
||||
Control environment:
|
||||||
For all changes to policies and procedures identified, assess effectiveness of internal controls over financial reporting and disclosure controls and procedures and implement any necessary changes
Design and implement internal controls over the IFRSs changeover process
|
Sign-off by internal controls group on effectiveness of internal controls prior to changeover
Internal controls over IFRSs changeover process in place by 2009
|
Assessments and sign-offs have been provided for completed work streams and will continue as the remaining work streams progress
Specific controls have been established and documented in relation to the IFRSs changeover process
|
||||
52
Accounting Policy Area | Impact of Policy Adoption | ||
Income Taxes (Quantification updated from 2009 financial review annual report) |
Differences from existing Canadian GAAP: Under IFRSs, unrealized profits resulting from intragroup transactions are eliminated from the carrying amount of assets, but no equivalent adjustment is made for tax purposes. The difference between the tax rates of the two entities will result in an impact on net income. This differs from Canadian GAAP, where current tax payable in relation to such profits is recorded as a current asset until the transaction is realized by the group. As a result, 2009 net income will decrease by $0.3 million. Equity will increase by $5.4 million in 2009 ($5.7 million in 2008). | ||
Under IFRSs, deferred tax assets recognized in relation to share-based payment arrangements (for example, our employee stock option plan in the US) are adjusted each period to reflect the amount of future tax deductions that the company expects to receive based on the current market price of the shares. The benefit of such amounts is recognized in contributed surplus, and never impacts net income. Under the companys current Canadian GAAP policy, tax deductions for the companys employee stock option plan in the US are recognized as reductions to tax expense, within net income, in the period that the deduction is allowed. This difference will result in a decrease to net income of $7.1 million in 2009. Equity will increase by $105.6 million in 2009 ($57.2 million in 2008). | |||
53
Standard | Description of Change | ||
IFRS 9, Financial Instruments |
In November 2009, the IASB issued guidance relating to the classification and measurement of financial assets. Financial assets will generally be measured initially at fair value plus particular transaction costs. Financial assets will subsequently be measured at either amortized cost or fair value. In October 2010, the IASB issued amendments to IFRS 9 relating to the accounting for financial liabilities. Under the new requirements, an entity choosing to measure a financial liability at fair value will present the portion of any change in its fair value due to changes in the entitys own credit risk in other comprehensive income, rather than within profit or loss. The standard must be applied retrospectively and is effective for periods commencing on or after January 1, 2013. The company is currently reviewing the standard to determine the potential impact on its consolidated financial statements. | ||
Amendments to IFRIC 14, Prepayments of a Minimum Funding Requirement |
In November 2009, the International Financial Reporting Interpretations Committee (IFRIC) issued amendments to IFRIC 14 relating to the prepayments of a minimum funding requirement for an employee defined benefit plan. The amendments apply when an entity is subject to minimum funding requirements and makes an early payment of contributions to cover those requirements. The amendments permit such an entity to treat the benefit of such an early payment as an asset. The amendment must be applied from the beginning of the first comparative period presented in the first financial statements in which the amendment is applied and is effective for periods commencing on or after January 1, 2011. The company is currently reviewing the amendments to determine the potential impact on its consolidated financial statements. | ||
54
Standard | Description of Change | ||
Amendments to IFRS 3, Business Combinations |
In May 2010, the IASB issued amendments to IFRS 3 as part of its annual improvements process. The amendments clarified certain issues related to business combinations, including: limiting the scope of the choice to measure non-controlling interests at fair value or at the proportionate share of the acquirees net assets; and clarifying the accounting treatment for share-based payment transactions that are part of a business combination. The amendments must be applied prospectively and are effective for periods commencing on or after July 1, 2010. As the company intends to make use of the exemption in IFRS 1 to not apply IFRS 3 to business combinations occurring prior to the date of transition to IFRSs, these amendments will not impact accounting for any of the companys historical business combinations. | ||
Amendments to IFRS 7, Financial Instruments: Disclosures |
In May 2010, the IASB issued amendments to IFRS 7 as part of its annual improvements process. The amendments addressed various requirements relating to the disclosure of financial instruments. The amendments are effective for periods commencing on or after January 1, 2011, with earlier application permitted. The company is currently reviewing the amendments to determine the potential impact on its consolidated financial statements. | ||
Amendments to IAS 1, Presentation of Financial Statements |
In May 2010, the IASB issued amendments to IAS 1 as part of its annual improvements process. The amendments clarify that entities may present the required reconciliation of changes in each component of other comprehensive income either in the statement of changes in equity or in the notes to the financial statements. The amendments are effective for periods commencing on or after January 1, 2011, with earlier application permitted. The company is currently reviewing the amendments to determine the potential impact on its consolidated financial statements. | ||
Transition Requirements for Amendments Arising as a Result of IAS 27, Consolidated and Separate Financial Statements |
In May 2010, as part of its annual improvements process, the IASB issued consequential amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates, IAS 28, Investments in Associates and IAS 31, Interest in Joint Ventures. The amendments provide that certain requirements of these standards are to be applied prospectively and are effective for periods commencing on or after July 1, 2010, with earlier application permitted. The company is currently reviewing the amendments to determine the potential impact on its consolidated financial statements. | ||
55
Standard | Description of Change | ||
Amendments to IAS 34, Interim Financial Reporting |
In May 2010, the IASB issued amendments to IAS 34 as part of its annual improvements process. The amendments provided clarification of the disclosures required by IAS 34 when considered against the disclosure requirements of other IFRSs and are effective for periods commencing on or after January 1, 2011, with earlier application permitted. The company is currently reviewing the amendments to determine the potential impact on its consolidated financial statements. | ||
(Unaudited) | ||||
In millions of US dollars | ||||
For The Year Ended December 31 | 2009 | |||
Net Income Under Canadian GAAP
|
$987.8 | |||
IFRSs adjustments to net income (based on differences identified
to date):
|
||||
Policy choices
|
||||
Employee benefits Actuarial gains and losses
|
28.6 | |||
Provisions Changes in decommissioning liabilities
|
TBD | |||
Other
|
||||
Employee benefits Past service costs
|
17.3 | |||
Employee benefits Canadian GAAP transition amounts
|
0.2 | |||
Borrowing costs
|
(8.4 | ) | ||
Impairment of assets
|
(1.0 | ) | ||
Share-based payments
|
2.4 | |||
Income taxes Tax effect of above differences
|
(14.8 | ) | ||
Income tax related GAAP differences Quantified
differences
|
(125.4 | ) | ||
Not yet quantified
|
TBD |
56
(Unaudited) | ||||||||
In millions of US dollars | ||||||||
As at December 31 | 2009 | 2008 | ||||||
Shareholders Equity Under Canadian GAAP
|
$ | 6,500.7 | $ | 4,588.9 | ||||
IFRSs adjustments to shareholders equity (based on
differences identified to date):
|
||||||||
Policy choices
|
||||||||
Employee benefits Actuarial gains and losses
|
(364.7 | ) | (369.3 | ) | ||||
Provisions Changes in decommissioning liabilities
|
TBD | TBD | ||||||
Other
|
||||||||
Employee benefits Past service costs
|
14.2 | (3.1 | ) | |||||
Employee benefits Canadian GAAP transition amounts
|
(2.6 | ) | (2.8 | ) | ||||
Borrowing costs
|
(14.8 | ) | (6.4 | ) | ||||
Impairment of assets
|
9.4 | 10.4 | ||||||
Share-based payments
|
2.4 | - | ||||||
Income taxes Tax effect of above differences
|
130.9 | 137.4 | ||||||
Income tax related GAAP differences Quantified
differences
|
127.5 | 78.3 | ||||||
Not yet quantified
|
TBD | TBD |
57
58
59
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
60
ITEM 1. | LEGAL PROCEEDINGS |
| BHPs failure to disclose a material condition to the BHP Offer that BHP shareholder approval is reasonably likely to be required if BHP increases the offer consideration; | |
| BHPs misleading and contradictory statements concerning its future plans to enter the potash industry as a competitor and its plans to run PotashCorp if its acquisition is successful; | |
| BHPs misleading and inconsistent positions about its plans with respect to Canpotex Limited, the offshore marketing company for Saskatchewan potash producers; and | |
| BHPs inconsistent statements about its plans to divest the nitrogen and phosphate businesses of PotashCorp. |
61
ITEM 5. | OTHER INFORMATION |
Aurora, |
Weeping |
White |
||||||||||
North |
Water, |
Springs, |
||||||||||
Carolina | Nebraska | Florida | ||||||||||
(a) the total number of alleged violations of
mandatory health or safety standards that could significantly or
substantially contribute to the cause and effect of a coal or
other mine safety or health hazard under Section 104 of the
Act for which a citation was received from the Mine Safety and
Health Administration (MSHA);
|
2 | 1 | 3 | |||||||||
(b) the total number of orders issued under
section 104(b) of the Act;
|
0 | 0 | 0 | |||||||||
(c) the total number of citations received and orders
issued under section 104(d) of the Act for alleged
unwarrantable failures of the company to comply with mandatory
health or safety standards;
|
0 | 0 | 0 | |||||||||
(d) the total number of alleged flagrant violations
under section 110(b)(2) of the Act;
|
0 | 0 | 0 | |||||||||
(e) the total number of imminent danger orders issued
under section 107(a) of the Act;
|
0 | 0 | 0 | |||||||||
(f) the total dollar value of proposed assessments
from the MHSA under the Act;
|
$ | 1,967.00 | $ | 263.00 | 0 | |||||||
(g) the total number of mining-related fatalities; and
|
0 | 0 | 0 | |||||||||
(h) the total number of legal actions pending before
the Federal Mine Safety and Health Review Commission as of
September 30, 2010.
|
1 | 1 | 3 |
62
ITEM 6. | EXHIBITS |
Incorporated by |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
3(a)
|
Articles of Continuance of the registrant dated May 15, 2002. | 10-Q | 6/30/2002 | |||||
3(b)
|
Bylaws of the registrant effective May 15, 2002. | 10-Q | 6/30/2002 | |||||
4(a)
|
Term Credit Agreement between The Bank of Nova Scotia and other financial institutions and the registrant dated September 25, 2001. | 10-Q | 6/30/2009 | |||||
4(b)
|
Syndicated Term Credit Facility Amending Agreement between The Bank of Nova Scotia and other financial institutions and the registrant dated as of September 23, 2003. | 10-Q | 6/30/2009 | |||||
4(c)
|
Syndicated Term Credit Facility Second Amending Agreement between The Bank of Nova Scotia and other financial institutions and the registrant dated as of September 21, 2004. | 8-K | 6/30/2009 | |||||
4(d)
|
Syndicated Term Credit Facility Third Amending Agreement between The Bank of Nova Scotia and other financial institutions and the registrant dated as of September 20, 2005. | 8-K | 9/22/2005 | 4(a) | ||||
4(e)
|
Syndicated Term Credit Facility Fourth Amending Agreement between The Bank of Nova Scotia and other financial institutions and the registrant dated as of September 27, 2006. | 10-Q | 9/30/2006 | |||||
4(f)
|
Syndicated Term Credit Facility Fifth Amending Agreement between the Bank of Nova Scotia and other financial institutions and the registrant dated as of October 19, 2007. | 8-K | 10/22/2007 | 4(a) | ||||
4(g)
|
Indenture dated as of June 16, 1997, between the registrant and The Bank of Nova Scotia Trust Company of New York. | 8-K | 6/18/1997 | 4(a) | ||||
4(h)
|
Indenture dated as of February 27, 2003, between the registrant and The Bank of Nova Scotia Trust Company of New York. | 10-K | 12/31/2002 | 4(c) | ||||
4(i)
|
Form of Note relating to the registrants offering of $600,000,000 principal amount of 7.75% Notes due May 31, 2011. | 8-K | 5/17/2001 | 4 | ||||
4(j)
|
Form of Note relating to the registrants offering of $250,000,000 principal amount of 4.875% Notes due March 1, 2013. | 8-K | 2/28/2003 | 4 |
63
Incorporated by |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
4(k)
|
Form of Note relating to the registrants offering of $500,000,000 principal amount of 5.875% Notes due December 1, 2036. | 8-K | 11/30/2006 | 4(a) | ||||
4(l)
|
Form of Note relating to the registrants offering of $500,000,000 principal amount of 5.25% Notes due May 15, 2014. | 8-K | 5/1/2009 | 4(a) | ||||
4(m)
|
Form of Note relating to the registrants offering of $500,000,000 principal amount of 6.50% Notes due May 15, 2019. | 8-K | 5/1/2009 | 4(b) | ||||
4(n)
|
Form of Note relating to the registrants offering of $500,000,000 principal amount of 3.75% Notes due September 30, 2015. | 8-K | 9/25/2009 | 4(a) | ||||
4(o)
|
Form of Note relating to the registrants offering of $500,000,000 principal amount of 4.875% Notes due March 30, 2020. | 8-K | 9/25/2009 | 4(b) | ||||
4(p)
|
Revolving Term Credit Facility Agreement between the Bank of Nova Scotia and other financial institutions and the registrant dated December 11, 2009. | 8-K | 12/15/2009 | 4(a) | ||||
4(q)
|
Shareholder Rights Plan Agreement, dated August 16, 2010, between the registrant and CIBC Mellon Trust Company, as Rights Agent. | 8-K/A | 8/23/2010 | 4.1 |
Incorporated By |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
10(a)
|
Sixth Voting Agreement dated April 22, 1978, between Central Canada Potash, Division of Noranda, Inc., Cominco Ltd., International Minerals and Chemical Corporation (Canada) Limited, PCS Sales and Texasgulf Inc. |
F-1 (File No. 33-31303) |
9/28/1989 | 10(f) | ||||
10(b)
|
Canpotex Limited Shareholders Seventh Memorandum of Agreement effective April 21, 1978, between Central Canada Potash, Division of Noranda Inc., Cominco Ltd., International Minerals and Chemical Corporation (Canada) Limited, PCS Sales, Texasgulf Inc. and Canpotex Limited as amended by Canpotex S&P amending agreement dated November 4, 1987. |
F-1 (File No. 33-31303) |
9/28/1989 | 10(g) | ||||
10(c)
|
Producer Agreement dated April 21, 1978, between Canpotex Limited and PCS Sales. |
F-1 (File No. 33-31303) |
9/28/1989 | 10(h) |
64
Incorporated By |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
10(d)
|
Canpotex/PCS Amending Agreement, dated as of October 1, 1992. | 10-K | 12/31/1995 | 10(f) | ||||
10(e)
|
Canpotex PCA Collateral Withdrawing/PCS Amending Agreement, dated as of October 7, 1993. | 10-K | 12/31/1995 | 10(g) | ||||
10(f)
|
Canpotex Producer Agreement amending agreement dated as of July 1, 2002. | 10-Q | 6/30/2004 | 10(g) | ||||
10(g)
|
Esterhazy Restated Mining and Processing Agreement dated January 31, 1978, between International Minerals & Chemical Corporation (Canada) Limited and the registrants predecessor. |
F-1 (File No. 33-31303) |
9/28/1989 | 10(e) | ||||
10(h)
|
Agreement dated December 21, 1990, between International Minerals & Chemical Corporation (Canada) Limited and the registrant, amending the Esterhazy Restated Mining and Processing Agreement dated January 31, 1978. | 10-K | 12/31/1990 | 10(p) | ||||
10(i)
|
Agreement effective August 27, 1998, between International Minerals & Chemical (Canada) Global Limited and the registrant, amending the Esterhazy Restated Mining and Processing Agreement dated January 31, 1978 (as amended). | 10-K | 12/31/1998 | 10(l) | ||||
10(j)
|
Agreement effective August 31, 1998, among International Minerals & Chemical (Canada) Global Limited, International Minerals & Chemical (Canada) Limited Partnership and the registrant assigning the interest in the Esterhazy Restated Mining and Processing Agreement dated January 31, 1978 (as amended) held by International Minerals & Chemical (Canada) Global Limited to International Minerals & Chemical (Canada) Limited Partnership. | 10-K | 12/31/1998 | 10(m) | ||||
10(k)
|
Potash Corporation of Saskatchewan Inc. Stock Option Plan Directors, as amended. | 10-K | 12/31/2006 | 10(l) | ||||
10(l)
|
Potash Corporation of Saskatchewan Inc. Stock Option Plan Officers and Employees, as amended. | 10-K | 12/31/2006 | 10(m) | ||||
10(m)
|
Short-Term Incentive Plan of the registrant effective January 2000, as amended. | 10-Q | 9/30/2009 | |||||
10(n)
|
Resolution and Forms of Agreement for Supplemental Retirement Income Plan, for officers and key employees of the registrant. | 10-K | 12/31/1995 | 10(o) | ||||
10(o)
|
Amending Resolution and revised forms of agreement regarding Supplemental Retirement Income Plan of the registrant. | 10-Q | 6/30/1996 | 10(x) |
65
Incorporated By |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
10(p)
|
Amended and restated Supplemental Retirement Income Plan of the registrant and text of amendment to existing supplemental income plan agreements. | 10-Q | 9/30/2000 | 10(mm) | ||||
10(q)
|
Amendment, dated February 23, 2009, to the amended and restated Supplemental Retirement Income Plan. | 10-K | 12/31/2008 | 10(r) | ||||
10(r)
|
Form of Letter of amendment to existing supplemental income plan agreements of the registrant. | 10-K | 12/31/2002 | 10(cc) | ||||
10(s)
|
Amended and restated agreement dated February 20, 2007, between the registrant and William J. Doyle concerning the Supplemental Retirement Income Plan. | 10-K | 12/31/2006 | |||||
10(t)
|
Amendment, dated December 24, 2008, to the amended and restated agreement, dated February 20, 2007, between the registrant and William J. Doyle concerning the Supplemental Retirement Income Plan. | 10-K | 12/31/2008 | 10(u) | ||||
10(u)
|
Amendment, dated February 23, 2009, to the amended and restated agreement, dated February 20, 2007, between the registrant and William J. Doyle concerning the Supplemental Retirement Income Plan. | 10-K | 12/31/2008 | 10(v) | ||||
10(v)
|
Amendment, dated February 23, 2009, to the amended and restated agreement dated August 2, 2006, between the registrant and Wayne R. Brownlee concerning the Supplemental Retirement Income Plan. | 10-K | 12/31/2008 | 10(w) | ||||
10(w)
|
Amendment, dated February 23, 2009, to the amended and restated agreement, dated August 2, 1996, between the registrant and Garth W. Moore concerning the Supplemental Retirement Income Plan. | 10-K | 12/31/2008 | 10(x) | ||||
10(x)
|
Supplemental Retirement Benefits Plan for U.S. Executives dated effective January 1, 1999. | 10-Q | 6/30/2002 | 10(aa) | ||||
10(y)
|
Amendment No. 1, dated December 24, 2008, to the Supplemental Retirement Plan for U.S. Executives. | 10-K | 12/31/2008 | 10(z) | ||||
10(z)
|
Amendment No. 2, dated February 23, 2009, to the Supplemental Retirement Plan for U.S. Executives. | 10-K | 12/31/2008 | 10(aa) | ||||
10(aa)
|
Forms of Agreement dated December 30, 1994, between the registrant and certain officers of the registrant. | 10-K | 12/31/1995 | 10(p) | ||||
10(bb)
|
Form of Agreement of Indemnification dated August 8, 1995, between the registrant and certain officers and directors of the registrant. | 10-K | 12/31/1995 | 10(q) | ||||
10(cc)
|
Resolution and Form of Agreement of Indemnification dated January 24, 2001. | 10-K | 12/31/2000 | 10(ii) | ||||
10(dd)
|
Resolution and Form of Agreement of Indemnification July 21, 2004. | 10-Q | 6/30/2004 | 10(ii) |
66
Incorporated By |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
10(ee)
|
Chief Executive Officer Medical and Dental Benefits. | 10-K | 12/31/2004 | 10(jj) | ||||
10(ff)
|
Deferred Share Unit Plan for Non-Employee Directors, as amended. | 10-Q | 3/31/2008 | 10(bb) | ||||
10(gg)
|
U.S. Participant Addendum No. 1 to the Deferred Share Unit Plan for Non-Employee Directors. | 10-K | 12/31/2008 | 10(jj) | ||||
10(hh)
|
Potash Corporation of Saskatchewan Inc. 2005 Performance Option Plan and Form of Option Agreement, as amended. | 10-K | 12/31/2006 | 10(cc) | ||||
10(ii)
|
Potash Corporation of Saskatchewan Inc. 2006 Performance Option Plan and Form of Option Agreement, as amended. | 10-K | 12/31/2006 | 10(dd) | ||||
10(jj)
|
Potash Corporation of Saskatchewan Inc. 2007 Performance Option Plan and Form of Option Agreement. | 10-Q | 3/31/2007 | 10(ee) | ||||
10(kk)
|
Potash Corporation of Saskatchewan Inc. 2008 Performance Option Plan and Form of Option Agreement. | 10-Q | 3/31/2008 | 10(ff) | ||||
10(ll)
|
Potash Corporation of Saskatchewan Inc. 2009 Performance Option Plan and Form of Option Agreement. | 10-Q | 3/31/2009 | 10(mm) | ||||
10(mm)
|
Potash Corporation of Saskatchewan Inc. 2010 Performance Option Plan and Form of Option Agreement. | 8-K | 5/7/2010 | 10.1 | ||||
10(nn)
|
Medium-Term Incentive Plan of the registrant effective January 2009. | 10-K | 12/31/2008 | 10(qq) | ||||
11
|
Statement re Computation of Per Share Earnings. | |||||||
31(a)
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
31(b)
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
32
|
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
67
By: |
/s/ Joseph
Podwika
|
By: |
/s/ Wayne
R. Brownlee
|
68
Incorporated by |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
3(a)
|
Articles of Continuance of the registrant dated May 15, 2002. | 10-Q | 6/30/2002 | |||||
3(b)
|
Bylaws of the registrant effective May 15, 2002. | 10-Q | 6/30/2002 | |||||
4(a)
|
Term Credit Agreement between The Bank of Nova Scotia and other financial institutions and the registrant dated September 25, 2001. | 10-Q | 6/30/2009 | |||||
4(b)
|
Syndicated Term Credit Facility Amending Agreement between The Bank of Nova Scotia and other financial institutions and the registrant dated as of September 23, 2003. | 10-Q | 6/30/2009 | |||||
4(c)
|
Syndicated Term Credit Facility Second Amending Agreement between The Bank of Nova Scotia and other financial institutions and the registrant dated as of September 21, 2004. | 8-K | 6/30/2009 | |||||
4(d)
|
Syndicated Term Credit Facility Third Amending Agreement between The Bank of Nova Scotia and other financial institutions and the registrant dated as of September 20, 2005. | 8-K | 9/22/2005 | 4(a) | ||||
4(e)
|
Syndicated Term Credit Facility Fourth Amending Agreement between The Bank of Nova Scotia and other financial institutions and the registrant dated as of September 27, 2006. | 10-Q | 9/30/2006 | |||||
4(f)
|
Syndicated Term Credit Facility Fifth Amending Agreement between the Bank of Nova Scotia and other financial institutions and the registrant dated as of October 19, 2007. | 8-K | 10/22/2007 | 4(a) | ||||
4(g)
|
Indenture dated as of June 16, 1997, between the registrant and The Bank of Nova Scotia Trust Company of New York. | 8-K | 6/18/1997 | 4(a) | ||||
4(h)
|
Indenture dated as of February 27, 2003, between the registrant and The Bank of Nova Scotia Trust Company of New York. | 10-K | 12/31/2002 | 4(c) | ||||
4(i)
|
Form of Note relating to the registrants offering of $600,000,000 principal amount of 7.75% Notes due May 31, 2011. | 8-K | 5/17/2001 | 4 | ||||
4(j)
|
Form of Note relating to the registrants offering of $250,000,000 principal amount of 4.875% Notes due March 1, 2013. | 8-K | 2/28/2003 | 4 |
Incorporated by |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
4(k)
|
Form of Note relating to the registrants offering of $500,000,000 principal amount of 5.875% Notes due December 1, 2036. | 8-K | 11/30/2006 | 4(a) | ||||
4(l)
|
Form of Note relating to the registrants offering of $500,000,000 principal amount of 5.25% Notes due May 15, 2014. | 8-K | 5/1/2009 | 4(a) | ||||
4(m)
|
Form of Note relating to the registrants offering of $500,000,000 principal amount of 6.50% Notes due May 15, 2019. | 8-K | 5/1/2009 | 4(b) | ||||
4(n)
|
Form of Note relating to the registrants offering of $500,000,000 principal amount of 3.75% Notes due September 30, 2015. | 8-K | 9/25/2009 | 4(a) | ||||
4(o)
|
Form of Note relating to the registrants offering of $500,000,000 principal amount of 4.875% Notes due March 30, 2020. | 8-K | 9/25/2009 | 4(b) | ||||
4(p)
|
Revolving Term Credit Facility Agreement between the Bank of Nova Scotia and other financial institutions and the registrant dated December 11, 2009. | 8-K | 12/15/2009 | 4(a) | ||||
4(q)
|
Shareholder Rights Plan Agreement, dated August 16, 2010, between the registrant and CIBC Mellon Trust Company, as Rights Agent. | 8-K/A | 8/23/2010 | 4.1 |
Incorporated By |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
10(a)
|
Sixth Voting Agreement dated April 22, 1978, between Central Canada Potash, Division of Noranda, Inc., Cominco Ltd., International Minerals and Chemical Corporation (Canada) Limited, PCS Sales and Texasgulf Inc. |
F-1 (File No. 33-31303) |
9/28/1989 | 10(f) | ||||
10(b)
|
Canpotex Limited Shareholders Seventh Memorandum of Agreement effective April 21, 1978, between Central Canada Potash, Division of Noranda Inc., Cominco Ltd., International Minerals and Chemical Corporation (Canada) Limited, PCS Sales, Texasgulf Inc. and Canpotex Limited as amended by Canpotex S&P amending agreement dated November 4, 1987. |
F-1 (File No. 33-31303) |
9/28/1989 | 10(g) | ||||
10(c)
|
Producer Agreement dated April 21, 1978, between Canpotex Limited and PCS Sales. |
F-1 (File No. 33-31303) |
9/28/1989 | 10(h) | ||||
10(d)
|
Canpotex/PCS Amending Agreement, dated as of October 1, 1992. | 10-K | 12/31/1995 | 10(f) |
Incorporated By |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
10(e)
|
Canpotex PCA Collateral Withdrawing/PCS Amending Agreement, dated as of October 7, 1993. | 10-K | 12/31/1995 | 10(g) | ||||
10(f)
|
Canpotex Producer Agreement amending agreement dated as of July 1, 2002. | 10-Q | 6/30/2004 | 10(g) | ||||
10(g)
|
Esterhazy Restated Mining and Processing Agreement dated January 31, 1978, between International Minerals & Chemical Corporation (Canada) Limited and the registrants predecessor. |
F-1 (File No. 33-31303) |
9/28/1989 | 10(e) | ||||
10(h)
|
Agreement dated December 21, 1990, between International Minerals & Chemical Corporation (Canada) Limited and the registrant, amending the Esterhazy Restated Mining and Processing Agreement dated January 31, 1978. | 10-K | 12/31/1990 | 10(p) | ||||
10(i)
|
Agreement effective August 27, 1998, between International Minerals & Chemical (Canada) Global Limited and the registrant, amending the Esterhazy Restated Mining and Processing Agreement dated January 31, 1978 (as amended). | 10-K | 12/31/1998 | 10(l) | ||||
10(j)
|
Agreement effective August 31, 1998, among International Minerals & Chemical (Canada) Global Limited, International Minerals & Chemical (Canada) Limited Partnership and the registrant assigning the interest in the Esterhazy Restated Mining and Processing Agreement dated January 31, 1978 (as amended) held by International Minerals & Chemical (Canada) Global Limited to International Minerals & Chemical (Canada) Limited Partnership. | 10-K | 12/31/1998 | 10(m) | ||||
10(k)
|
Potash Corporation of Saskatchewan Inc. Stock Option Plan Directors, as amended. | 10-K | 12/31/2006 | 10(l) | ||||
10(l)
|
Potash Corporation of Saskatchewan Inc. Stock Option Plan Officers and Employees, as amended. | 10-K | 12/31/2006 | 10(m) | ||||
10(m)
|
Short-Term Incentive Plan of the registrant effective January 2000, as amended. | 10-Q | 9/30/2009 | |||||
10(n)
|
Resolution and Forms of Agreement for Supplemental Retirement Income Plan, for officers and key employees of the registrant. | 10-K | 12/31/1995 | 10(o) | ||||
10(o)
|
Amending Resolution and revised forms of agreement regarding Supplemental Retirement Income Plan of the registrant. | 10-Q | 6/30/1996 | 10(x) | ||||
10(p)
|
Amended and restated Supplemental Retirement Income Plan of the registrant and text of amendment to existing supplemental income plan agreements. | 10-Q | 9/30/2000 | 10(mm) |
Incorporated By |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
10(q)
|
Amendment, dated February 23, 2009, to the amended and restated Supplemental Retirement Income Plan. | 10-K | 12/31/2008 | 10(r) | ||||
10(r)
|
Form of Letter of amendment to existing supplemental income plan agreements of the registrant. | 10-K | 12/31/2002 | 10(cc) | ||||
10(s)
|
Amended and restated agreement dated February 20, 2007, between the registrant and William J. Doyle concerning the Supplemental Retirement Income Plan. | 10-K | 12/31/2006 | |||||
10(t)
|
Amendment, dated December 24, 2008, to the amended and restated agreement, dated February 20, 2007, between the registrant and William J. Doyle concerning the Supplemental Retirement Income Plan. | 10-K | 12/31/2008 | 10(u) | ||||
10(u)
|
Amendment, dated February 23, 2009, to the amended and restated agreement, dated February 20, 2007, between the registrant and William J. Doyle concerning the Supplemental Retirement Income Plan. | 10-K | 12/31/2008 | 10(v) | ||||
10(v)
|
Amendment, dated February 23, 2009, to the amended and restated agreement dated August 2, 2006, between the registrant and Wayne R. Brownlee concerning the Supplemental Retirement Income Plan. | 10-K | 12/31/2008 | 10(w) | ||||
10(w)
|
Amendment, dated February 23, 2009, to the amended and restated agreement, dated August 2, 1996, between the registrant and Garth W. Moore concerning the Supplemental Retirement Income Plan. | 10-K | 12/31/2008 | 10(x) | ||||
10(x)
|
Supplemental Retirement Benefits Plan for U.S. Executives dated effective January 1, 1999. | 10-Q | 6/30/2002 | 10(aa) | ||||
10(y)
|
Amendment No. 1, dated December 24, 2008, to the Supplemental Retirement Plan for U.S. Executives. | 10-K | 12/31/2008 | 10(z) | ||||
10(z)
|
Amendment No. 2, dated February 23, 2009, to the Supplemental Retirement Plan for U.S. Executives. | 10-K | 12/31/2008 | 10(aa) | ||||
10(aa)
|
Forms of Agreement dated December 30, 1994, between the registrant and certain officers of the registrant. | 10-K | 12/31/1995 | 10(p) | ||||
10(bb)
|
Form of Agreement of Indemnification dated August 8, 1995, between the registrant and certain officers and directors of the registrant. | 10-K | 12/31/1995 | 10(q) | ||||
10(cc)
|
Resolution and Form of Agreement of Indemnification dated January 24, 2001. | 10-K | 12/31/2000 | 10(ii) | ||||
10(dd)
|
Resolution and Form of Agreement of Indemnification July 21, 2004. | 10-Q | 6/30/2004 | 10(ii) | ||||
10(ee)
|
Chief Executive Officer Medical and Dental Benefits. | 10-K | 12/31/2004 | 10(jj) |
Incorporated By |
||||||||
Reference | ||||||||
Exhibit |
Filing Date/ |
Exhibit Number |
||||||
Number | Description of Document | Form | Period End Date | (if different) | ||||
10(ff)
|
Deferred Share Unit Plan for Non-Employee Directors, as amended. | 10-Q | 3/31/2008 | 10(bb) | ||||
10(gg)
|
U.S. Participant Addendum No. 1 to the Deferred Share Unit Plan for Non-Employee Directors. | 10-K | 12/31/2008 | 10(jj) | ||||
10(hh)
|
Potash Corporation of Saskatchewan Inc. 2005 Performance Option Plan and Form of Option Agreement, as amended. | 10-K | 12/31/2006 | 10(cc) | ||||
10(ii)
|
Potash Corporation of Saskatchewan Inc. 2006 Performance Option Plan and Form of Option Agreement, as amended. | 10-K | 12/31/2006 | 10(dd) | ||||
10(jj)
|
Potash Corporation of Saskatchewan Inc. 2007 Performance Option Plan and Form of Option Agreement. | 10-Q | 3/31/2007 | 10(ee) | ||||
10(kk)
|
Potash Corporation of Saskatchewan Inc. 2008 Performance Option Plan and Form of Option Agreement. | 10-Q | 3/31/2008 | 10(ff) | ||||
10(ll)
|
Potash Corporation of Saskatchewan Inc. 2009 Performance Option Plan and Form of Option Agreement. | 10-Q | 3/31/2009 | 10(mm) | ||||
10(mm)
|
Potash Corporation of Saskatchewan Inc. 2010 Performance Option Plan and Form of Option Agreement. | 8-K | 5/7/2010 | 10.1 | ||||
10(nn)
|
Medium-Term Incentive Plan of the registrant effective January 2009. | 10-K | 12/31/2008 | 10(qq) | ||||
11
|
Statement re Computation of Per Share Earnings. | |||||||
31(a)
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
31(b)
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
32
|
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |