2023 Annual Report
Overview
Overview
MD&A
Five-year highlights
Financial statements and notes
Contents
You can find this report and information on
Nutrien on our website at nutrien.com.
More detailed information on our sustainability
strategy and performance is provided on our
website at nutrien.com/sustainability.
Overview
Letter from our President and CEO
Performance highlights
Sustainability highlights
Management’s discussion & analysis (“MD&A”)
Our approach to annual reporting
| Our company
How we create value
Global profile
Operating segments
| Operating environment
Megatrends
Market fundamentals and outlook
| Strategy
Nutrien’s strategy
Operating segment priorities
Capital allocation
| Governance
Corporate governance
Risk governance
Risk management process
| Key enterprise risks
| Results
Operating segment performance
Performance against 2023 targets
2024 Guidance and sensitivities
Annual financial information
Other and appendices
Five-year highlights
Financial statements and notes
Terms and definitions
Shareholder information
The Overview contains certain non-GAAP financial measures, which
do not have a standard meaning under IFRS, and other financial
measures including
•
•
•
•
Adjusted net earnings per share
Adjusted EBITDA
Return on invested capital (“ROIC”)
Adjusted net debt
For definitions, further information and reconciliation of these measures,
to the most directly comparable measures under IFRS, see the “Non-GAAP
financial measures” section. See the “Other financial measures” and
“Terms and definitions” sections for definitions, abbreviations and terms
used in this annual report.
1
2
6
7
8
9
10
12
14
16
18
20
23
28
30
31
35
38
40
42
43
44
50
52
64
65
66
72
90
92
146
149
Overview
MD&A
Five-year highlights
Financial statements and notes
Why Nutrien
Nutrien is a leading provider of crop inputs and services, helping to safely and
sustainably feed a growing world. We operate a world-class integrated network of
production, distribution and ag retail facilities that positions us to efficiently serve the
needs of growers. Our Nutrien Ag Solutions (“Retail”) business enhances the stability
of earnings and our low-cost fertilizer production assets have historically generated
significant cash flow through the cycle. We take a balanced and disciplined approach
to capital allocation, prioritizing investments that strengthen the advantages of our
integrated business and returning meaningful capital to our shareholders.
1 | Advantaged
position across
the ag value
chain
2 | Proven
financial strength
and stability
3 | Provider of
sustainable
agriculture
solutions
Nutrien Annual Report 2023
1
Letter from our
President and CEO
By 2050, the world’s population is expected to reach nearly
10 billion people and global grain and oilseed demand is projected
to exceed 5 billion tonnes on an annual basis. The amount of arable
land per person is estimated to decline by 15 percent over this
period, highlighting the challenge that lies ahead to produce enough
nutritious food to sustain this population while preserving the
world’s resources for generations to come.
Feeding the future
Nutrien’s purpose of Feeding the Future reflects the vital role we play in
helping growers safely and sustainably feed a growing world. We provide
products and services that increase crop productivity while improving
environmental performance, important outcomes that we believe must be
achieved in tandem. Through the collective expertise of our nearly 26,000
employees and the unique advantages of our world-class integrated network,
we strive to provide a more profitable, sustainable and secure future for our
stakeholders.
Navigated through period of unprecedented market volatility
We operate with a long-term mindset but need to be flexible and responsive
to our near-term operating environment. The agriculture industry has come
through a period of unprecedented market volatility since early 2022 driven by
a series of global geopolitical conflicts, supply chain disruptions and shifting
buying patterns. These unique events have impacted our performance and
resulted in adjustments to our strategic priorities.
In 2022, Nutrien generated record earnings and operating cash flows as
prices for agriculture and crop input products rose in response to supply-side
shocks. We allocated free cash flow to advance strategic growth initiatives
and increased share repurchases, deploying capital in areas that we believed
would create the greatest long-term value for our shareholders.
Crop input market fundamentals shifted in 2023 as supply chains adapted
and higher cost inventory worked its way through the channel, resulting in
lower fertilizer selling prices and Retail gross margins compared to the record
prior year. As the year progressed, we saw increased market stability and
stronger fertilizer demand in North America, supported by improved grower
affordability and lower channel inventories. Fertilizer demand in key offshore
markets also increased in the second half of 2023, however the level of market
stabilization varied by product and geography.
2
Ken Seitz
President and Chief Executive Officer
Global population growth 1
(billions of people)
9.7
8.2
6.1
2000
2025F
2050F
Source: United Nations
1 Forecast as of January 30, 2024.
Global grain and oilseed demand 1
(billions of tonnes)
5.1
3.5
2.1
2000
2025F
2050F
Source: USDA
1 Forecast as of January 30, 2024. Based on trend
production of barley, corn, millet, mixed grains, oats, oil
palm, canola/rapeseed, soybean, sunflower, rice, rye,
sorghum and wheat.
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023Overview
$5.1B
cash provided by operating
activities in 2023
$2.1B
returned to shareholders through
share repurchases and dividends
in 2023
Nutrien delivered adjusted EBITDA 1 of $6.1 billion
(net earnings of $1.3 billion) in 2023, below our initial
expectations for the year. In response to the change in
market conditions, we took a number of actions to reduce
controllable costs and enhance free cash flow. This
included a pause of our potash ramp-up and suspension
of work on our Geismar clean ammonia project. These
decisions, along with other operational efficiency
initiatives, lowered our 2023 planned capital expenditures
by $300 million and operating expenses by $100 million.
Operating cash flow of $5.1 billion was supported by a
reduction in non-cash working capital in Retail, one of
the counter-cyclical advantages of our integrated
business. We maintained a balanced and disciplined
approach to capital allocation, investing $2.7 billion to
sustain and enhance our assets and returned $2.1 billion
to shareholders through dividends and share repurchases.
Since the beginning of 2018, we have increased our
dividend per share by 35 percent and repurchased
23 percent of our outstanding shares.
Strengthened advantages of our integrated business
As we reflect on the past year, I am proud of the progress
we made on a number of strategic initiatives that
strengthened our core business, positioned the Company
for growth and advanced our key sustainability priorities.
In Retail, we continue to develop new and innovative
ways to serve the needs of our grower customers.
A great example of this is our proprietary products
business. These high-value products enhance yield
and environmental performance for the grower, while
supporting higher margins for Nutrien.
Our global proprietary products portfolio contributed
$1.0 billion in gross margin in 2023 and we increased
sales and margins from our plant nutritional and
biostimulant product lines. Gross margin for these
nutritional products has grown at a compound annual
growth rate of 15 percent over the last five years. We
plan to continue to invest in our proprietary product
business through differentiated offerings and expanded
manufacturing capacity.
In late 2022, we established a global commercial
organization with a single point of accountability for
delivering best-in-class customer service, driving supply
chain efficiencies, and leading margin optimization
opportunities across our integrated network. The
commercial team executed on a number of opportunities
that supported netbacks in a volatile market environment
and record sales volumes to North American fertilizer
customers in the second half of 2023. This included
capturing incremental value by delivering record potash
volumes through Nutrien Ag Solutions in North America,
as well as more than doubling sales of MAP+MST, our
specialty phosphate fertilizer offering.
1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section.
1 These are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section.
3
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023Overview
$1.0B
gross margin from Retail proprietary
products in 2023
40%
increase in annual potash ore
tonnes cut using autonomous
mining technology
We have a low-cost, flexible, six-mine potash network
with access to the best geology in the world. In 2023,
we increased our annual potash ore tonnes cut using
autonomous mining technology by 40 percent, improving
the safety and efficiency of our operations. We announced
the pause of our ramp-up to 18 million tonnes while
continuing to retain operational flexibility and our
low-cost position, preserving the ability to respond to
opportunities when there are disruptions to global potash
supply or surges in demand.
Nutrien is an industry leader in developing low-carbon
nitrogen production for integration into our value chain.
In 2023, we completed our GHG Phase 1 abatement
projects, which was a multi-year capital program that
will be a key contributor to reducing our greenhouse
gas emissions. We also completed brownfield expansion
projects at our Geismar nitrogen facility and major
maintenance turnarounds at our Geismar and Borger sites
that will support increased operating rates going forward.
Nothing is more important than the safety, health and
wellness of our employees, our contractors and the
communities we serve. While we achieved our lowest
recordable injury rate ever across our global operations,
regretfully our safety performance in 2023 fell short of
our expectations. This past year we experienced a loss
that deeply impacted our organization – the tragic passing
of one of our US Retail co-workers. This devastating loss
reminds us of the importance of our relentless pursuit of
safety. We are committed to doing better and continue to
take steps to prevent similar incidents from happening
again. It is critical that we continue to prioritize the
training, processes and systems that keep our people and
communities safe.
Positioned for growth in the future
Looking at the year ahead, agriculture fundamentals
remain supportive with global grain stocks-to-use ratios
at historically low levels. Crop prices have declined from
historically high levels in 2022 but lower crop input prices
have resulted in improved affordability and demand.
We expect gross margins for our Retail business to
improve across all product lines as input prices stabilize
and grower purchasing behavior normalizes. Global
potash shipments are projected to increase to 68 to 71
million tonnes in 2024 as demand continues to recover
towards trend levels. Constraints on global energy and
nitrogen supply continue to provide a positive backdrop
for our low-cost nitrogen assets. We expect to deliver
higher fertilizer sales volumes supported by increased
global fertilizer demand and improved operating rates at
our nitrogen and phosphate facilities.
Over the longer-term, we believe structural market shifts
will be supportive of higher fertilizer benchmark prices
compared to historical 10-year average levels. This view is
driven by the expectation for continued tightness in global
crop markets, higher energy prices and other inflationary
impacts on the global cost curve.
Beyond these market factors, we are prioritizing initiatives
within our control that enhance the quality of earnings,
4
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023Overview
free cash flow and return on capital. We intend to maintain a balanced and
disciplined approach to capital allocation and have reduced planned capital
expenditures by approximately $400 million in 2024 compared to the
prior year.
Retail adjusted EBITDA 1,2
(US$ billions)
We are projecting investment capital of $500 million in 2024, with
approximately half of this total associated with initiatives that support organic
growth in our core Retail geographies. This includes investments that expand
our proprietary products portfolio, drive network optimization and enhance
our digital capabilities.
1.5
1.85
1.65
2.1
1.9
The prospects for agriculture in Brazil remain positive and it remains an
important crop input market for Nutrien. In the near term, we will continue
to focus on integration of our recent acquisitions and optimization of our cost
structure in this market.
2023
2024F 1
Mid-Cycle 2
Scenario
1 Guidance provided in our news release dated February 21, 2024.
2 See the “Forward-looking statements” section.
The focus in our fertilizer operations is to maintain a low-cost position and
drive further efficiencies through potash mine automation and reliability
improvements at our nitrogen facilities. We expect to achieve more than 1
million tonnes of annual nitrogen volume growth through the completion of
high-return brownfield expansion projects and reliability initiatives over the
next few years. Additionally, we have capability to deliver an additional 1 to
2 million tonnes of potash per year compared to 2023 levels as demand for
potash grows.
Across our business, we continue to build strong relationships with our
customers, partners, suppliers, and the communities we serve, and will utilize
the advantages of our integrated business and position the Company to deliver
long-term value for our shareholders.
On behalf of the Board and our management team, I want to thank everyone
who played a part in our successes in 2023 and especially our employees
for your tireless effort as we work together to safely and sustainably Feed
the Future.
Ken Seitz
President and Chief Executive Officer
February 22, 2024
Potash manufactured sales volumes 1,2
(millions of tonnes KCl)
13.2
13.8
13.0
15.0
14.0
2023
2024F 1
Mid-Cycle 2
Scenario
1 Guidance provided in our news release dated February 21, 2024.
2 See the “Forward-looking statements” section.
Nitrogen manufactured sales volumes 1,2
(millions of tonnes)
10.4
11.2
10.6
12.0
11.5
2023
2024F 1
Mid-Cycle 2
Scenario
1 Guidance provided in our news release dated February 21, 2024.
2 See the “Forward-looking statements” section.
5
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023Overview
Performance highlights
Nutrien’s results were impacted by unprecedented volatility in global crop input markets over the past two
years. Net earnings and adjusted EBITDA decreased in 2023 compared to the record results in 2022 due to
lower selling prices across all segments and lower Retail earnings. We generated $5.1 billion in cash from
operating activities, invested $2.7 billion to sustain and enhance our assets, and returned $2.1 billion of
cash to our shareholders through dividends and share repurchases in 2023. We continued to invest in key
initiatives to reduce our total Scope 1 and 2 greenhouse gas (“GHG”) emissions.
Years ended December 31
(in millions of US dollars, except as otherwise noted)
2023
2022
2021
Financial performance
Sales
Gross margin
Net earnings
Diluted net earnings per share (US dollars)
Adjusted net earnings per share 1 (US dollars)
Adjusted EBITDA 1
Retail adjusted EBITDA
Potash adjusted EBITDA
Nitrogen adjusted EBITDA
Phosphate adjusted EBITDA
Cash provided by operating activities
Cash used in investing activities
Capital expenditures
Cash used for dividends and share repurchases 2
Return on invested capital 1
Adjusted net debt/Adjusted EBITDA 3
Non-financial performance 4
Scope 1 and 2 GHG emissions (Mmt CO2e)
CO2 captured and sold (Mmt)
Sustainably engaged acres (millions)
Lost-time injury frequency 5
Proportion of women in senior leadership 5
Community investment
29,056
8,474
1,282
2.53
4.44
6,058
1,459
2,404
1,930
470
5,066
2,958
2,671
2,079
10%
1.9x
12.2
1.0
2
0.24
23%
23
37,884
15,424
7, 687
14.18
13.19
12, 170
2, 293
5, 769
3, 931
594
8, 110
2,901
2, 475
5, 551
26%
0.9x
12.8
1.1
1
0.24
21%
33
27,712
9,409
3,179
5.52
6.23
7,126
1,939
2,736
2,308
540
3,886
1,807
1,884
2,080
15%
1.4x
13.8
1.1
n/m
0.27
21%
19
1
This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Additional information relating to 2021 is contained in the “Appendix -
Non-IFRS Financial Measures” sections of Nutrien’s MD&A dated February 17, 2022 for the year ended December 31, 2021, which information is incorporated by
reference herein. Such MD&A are available on SEDAR+ at sedarplus.ca.
2 This is a supplementary financial measure. See the “Other Financial Measures” section.
3
This is a capital management financial measure that includes non-GAAP components. See the “Non-GAAP Financial Measures” and “Other Financial Measures”
sections.
4 These are non-financial measures. See the “Terms & Definitions” section.
5 Frequency based on every 200,000 hours worked.
6
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023Overview Sustainability highlights
Nutrien is committed to delivering results for our stakeholders and pursuing our purpose of Feeding
the Future with strategic targets and goals that address our key sustainability risks and opportunities.
As our operating environment evolves, we continue to refine our approach through collaboration,
innovation and continuous improvement.
2 million
sustainably
engaged
acres
In 2023, we measured, documented and calculated outcomes on 2 million sustainably
engaged acres in North America, South America and Australia. We continue to provide
growers with whole-acre solutions that support sustainable and productive agriculture
and aim to deliver improved environmental outcomes.
Supporting our 2030 Commitment to enable growers to adopt sustainable and productive
agricultural products and practices on 75 million acres globally
GHG phase 1
completed
In 2023, we completed our GHG Phase 1 abatement program, which included a number of
nitrous oxide (“N2O”) abatement projects, energy and emission efficiency upgrades, and
tied in our second ammonia plant at our Redwater site to the Alberta Carbon Trunk Line
to allow additional carbon dioxide (“CO2”) to be permanently sequestered.
Supporting our 2030 Commitment to achieve at least a 30 percent intensity reduction in GHG
emissions (Scope 1 and 2) per tonne of our products produced, from a baseline year of 2018
Verified
carbon offsets
and insets
In 2023, we enabled emissions reductions on 900 thousand sustainably engaged acres in
North America, working with growers and collaborating with 15 suppliers and downstream
partners. We established a validated pathway and verified our first GHG insets in Canada
and verified GHG offsets and insets in the US, based on grower data.
Supporting our 2030 Commitment to launch and scale a comprehensive Carbon Program,
empowering growers and our industry to accelerate climate-smart agriculture and soil
carbon sequestration while rewarding growers for their efforts
1.2 Mmt
low-carbon
ammonia
Our near-term focus is on using carbon capture, utilization and storage (“CCUS”)
infrastructure, and growing our low-carbon ammonia production. As of the end of 2023,
Nutrien has annual production capability of 1.2 million tonnes of low-carbon ammonia
at our Geismar, Redwater and Joffre nitrogen facilities.
Supporting our 2030 Commitment to invest in new technologies and pursue the transition
to low-carbon fertilizers, including low-carbon and clean ammonia
Global Sustainability Report
For more information on our 2030 sustainability commitments and targets,
please refer to our Global Sustainability Report expected to be published in
March 2024, available on our website at nutrien.com.
7
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023Overview Overview
MD&A
Five-year highlights
Financial statements and notes
Management’s discussion
& analysis
The following management’s discussion and analysis (“MD&A”) is the responsibility of management and
is dated as of February 22, 2024.
The Board of Directors (“Board”) of
Nutrien carries out its responsibility
for review of this disclosure principally
through its Audit Committee, comprised
exclusively of independent directors. The
Audit Committee reviews and, prior to its
publication, recommends to the Board
approval of this disclosure. The Board
has approved this disclosure. The term
“Nutrien” refers to Nutrien Ltd. and the
terms “we”, “us”, “our”, “Nutrien”
and “the Company” refer to Nutrien
and, as applicable, Nutrien and its
direct and indirect subsidiaries on a
consolidated basis. This MD&A is based
on the Company’s audited consolidated
financial statements for the year ended
December 31, 2023 (“consolidated
financial statements”) based on
International Financial Reporting
Standards (“IFRS”) as issued by the
International Accounting Standards
Board, unless otherwise stated.
This MD&A contains certain non-GAAP
financial measures and ratios, which do
not have a standard meaning under IFRS
and, therefore, may not be comparable
to similar measures presented by
other issuers. Such non-GAAP financial
measures and ratios include
• Adjusted EBITDA
• Adjusted net earnings and adjusted
net earnings per share
• Gross margin excluding depreciation
and amortization per tonne –
manufactured
• Potash controllable cash cost of
product manufactured per tonne
• Ammonia controllable cash cost of
product manufactured per tonne
• Retail adjusted average working
capital to sales and Retail adjusted
average working capital to sales
excluding Nutrien Financial
• Nutrien Financial adjusted net
interest margin
• Retail cash operating coverage ratio
• Return on invested capital (“ROIC”)
• Adjusted net debt
For definitions, further information and
reconciliation of these measures to the
most directly comparable measures
under IFRS, see the “Non-GAAP financial
measures” and “Other financial
measures” sections.
Also see the cautionary statement in the
“Forward-looking statements” section.
All references to per share amounts
pertain to diluted net earnings (loss)
per share. Financial data in this annual
report is stated in millions of US dollars,
which is the functional currency
of Nutrien and the majority of its
subsidiaries, unless otherwise noted.
Information that is not meaningful is
indicated by n/m. Information that is not
applicable is indicated by n/a. See the
“Other financial measures” and “Terms
and definitions” sections for definitions,
abbreviations and terms used in this
annual report including the MD&A.
Additional information relating to
Nutrien (which, except as otherwise
noted, is not incorporated by reference
herein), including our Annual
Information Form for the year ended
December 31, 2023, can be found on
SEDAR+ at sedarplus.ca and on EDGAR
at sec.gov. The Company is a foreign
private issuer under the rules and
regulations of the US Securities and
Exchange Commission (the “SEC”).
The information contained on or
accessible from our website or any other
website is not incorporated by reference
into this MD&A or any other report or
document we file with or furnish to
applicable Canadian or US securities
regulatory authorities.
8
Nutrien Annual Report 2023
Our approach to annual reporting
Our goal is to communicate how we evaluate the opportunities and challenges in our operating
environment, which shape our approach to setting strategy, managing risk and governing our actions.
The priorities of our key stakeholders impact the way we approach long-term value creation, including
addressing key sustainability priorities. We continue to integrate sustainability-related information
into our corporate reporting framework, including reporting our Scope 1 and 2 GHG emissions, in this
annual report.
01
Our company
Outlines who we are as a company,
where we operate, how we create
value and describes each of our
operating segments
03
Strategy
Describes our corporate strategy and
how each of our operating segments
is supporting that strategy
30 | Nutrien’s strategy
31 | Operating segment
focus
35 | Capital allocation
04
Governance
Describes our key corporate
governance principles and risk
management process
40 | Corporate governance
41 | Board and executive leadership
42 | Risk governance
43 | Risk management process
12 | How we create value
14 | Global profile
16 | Operating segments
02
Operating environment
Defines factors and trends that
influence the environment we
operate in and outlook for 2024
20 | Megatrends
23 | Market fundamentals
and outlook
05
Key enterprise risks
Outlines the key risks that could
affect our performance and
our future operations
44 | Key enterprise risks
06
Results
Highlights our financial results for the
year 2023 and guidance for 2024
52 | Operating segment performance
64 | Performance against
2023 targets
65 | 2024 Guidance and sensitivities
66 | Annual financial information
9
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&A Our
company
10
01Nutrien Annual Report 2023Our companyOperating environmentStrategyGovernanceKey enterprise risksResultsOverviewMD&AFive-year highlightsFinancial statements and notes Alberta, Canada
Wheat is a staple food for
35 percent of the world’s
population. Canada is a
top exporter of wheat to
approximately 60 countries
worldwide. Nutrien operates
10 fertilizer production
facilities in Western Canada
and serves growers from our
275 Retail selling locations
on the Canadian prairies.
11
OverviewNutrien Annual Report 2023OverviewFive-year highlightsFinancial statements and notesOur companyOperating environmentStrategyGovernanceKey enterprise risksResultsMD&A How we create value
Our integrated business provides a number of advantages compared to our competitors,
including operational, financial and sustainability opportunities. We continue to explore ways
to further enhance the capabilities of our business to capture additional benefits across the
agriculture value chain.
1 | Advantaged
position across
the ag value
chain
Our integrated business provides competitive
advantages to optimize operations,
transportation and logistics, increase supply
chain efficiencies, support volume growth,
and be the key connection with the grower.
World-class production assets
Global supply chain
Leading ag retail network
26Mmt
NPK manufactured sales
volumes in 2023
~460
wholesale fertilizer
distribution points
>2,000
Retail selling locations across North
America, South America and Australia
~2,000
proprietary products
>1,000
crop input suppliers
>4,000
crop consultants
12
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOur company 2 | Proven financial
strength and stability
Our diversified Retail business enhances the stability of our earnings base
and our low-cost fertilizer production assets have historically generated
significant cash flow, providing the ability to invest in our business and
return meaningful capital to our shareholders.
Substantial cash generation
$4.8B
annual average cash provided by
operating activities (2019-2023)
Balanced approach to capital allocation (2019-2023)
(percent)
20% dividends
paid
33% share
repurchases
26% sustaining, mine
development and pre-stripping
capital expenditures
14% investing capital
expenditures
7% business acquisitions
(net of cash acquired)
3 | Provider of sustainable
agriculture solutions
Positioned to drive long-term value creation through integration of
sustainability initiatives, from fertilizer production to grower practices
in the field.
Carbon
sequestration
400K
Sustainability
program
900K
tonnes CO2 permanently sequestered
from our operations in 2023
sustainable agriproduct
program acres
Collaborative
partnerships
Value chain
collaborator
to advance sustainable agriculture
13
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOur company
Overview
MD&A
Five-year highlights
Financial statements and notes
Our company
Global profile
Our world-class fertilizer manufacturing assets are primarily located in North America, with
access to high-quality resources, lower cost inputs and an extensive distribution network to
efficiently supply our customers. Our Retail business serves growers in key agricultural markets
in North America, South America and Australia.
6
Potash mines
in Saskatchewan
1,475
Retail selling locations
in North America
13
Nitrogen production and
upgrade facilities in North
America and Trinidad
6
Phosphate production and
upgrade facilities in the US
Retail
Potash
Nitrogen
Phosphate
Joint venture and investments
European distribution
250
Retail selling locations
in South America
14
Nutrien Annual Report 2023
Overview
MD&A
MD&A
Five-year highlights
Financial statements and notes
Our company
| Retail
| Potash
| Nitrogen
| Phosphate
$19.5B
Net sales 1
$1.5B
Adjusted
EBITDA 1
17,000
Number of
employees 3
$3.8B
Net sales 1,2
$2.4B
Adjusted
EBITDA 1
3,200
Number of
employees 3
$3.8B
Net sales 1,2
$1.9B
Adjusted
EBITDA 1
1,700
Number of
employees 3
1 For the fiscal year ended December 31, 2023.
2 Related to manufactured products for Potash, Nitrogen and Phosphate.
3 As at December 31, 2023.
$1.7B
Net sales 1,2
$0.5B
Adjusted
EBITDA 1
1,500
Number of
employees 3
385
Retail selling locations
in Australia
Nutrien has four reportable operating segments: Retail, Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection
products, seed and merchandise, and provides services, including financing, directly to growers through a network of Retail selling locations in North America,
South America and Australia. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each
produces.
Nutrien Annual Report 2023
15
Operating segments
Nutrien has four reportable operating segments: Retail, Potash, Nitrogen and Phosphate. We are
the world’s premier retailer of crop inputs and services and operate the largest global network of
fertilizer production and distribution assets.
| Retail | #1 Global ag retailer
Our global Retail network of over 2,000 selling locations in
seven countries provides growers with a comprehensive
portfolio of value-added agronomic products and services
that includes crop nutrients, crop protection products,
seed and application services. The size and scale of our
network provides reach and flexibility to reliably serve
our customers throughout the growing season. We are
focused on building leading digital capabilities that
support data-driven insights to more efficiently serve our
grower customers and offer competitive credit products
that meet their crop input financing needs.
We produce an innovative portfolio of approximately
2,000 proprietary crop nutrient, crop protection and
seed products. These proprietary products generate a
higher margin for Nutrien and enhance crop production
efficiency and profitability for the grower. We are a
leading provider of plant nutritional products, including
biostimulants, which aim to increase crop yields through
enhanced nutrient efficiency and improved plant and soil
health outcomes.
Over 4,000 crop consultants support our grower
customers in crop planning, seed selection, soil sampling,
variable rate fertilizer application and crop monitoring.
Our agronomic tools and expertise combined with our
broad portfolio of value-added products supports on-
farm sustainability, enabling grower adoption of products
and practices that maximize productivity and minimize
environmental impacts.
| Potash | #1 Global potash producer
We operate six low-cost potash mines in Saskatchewan,
which have access to the best potash geology in the world
and are located in a stable geopolitical environment,
minimizing supply risk for our customers. We produce
multiple grades of potash and our flexible network
provides the ability to efficiently adjust operating
capability in response to changing market conditions.
Our extensive North American transportation and
distribution network includes approximately 5,900 owned
or leased railcars serviced by multiple railway providers.
Through Canpotex – our joint venture potash export,
sales and marketing company – we have access to four
North American marine terminals and other facilities as
needed to export potash to customers in approximately
40 countries around the world.
Our engagement practices help in building relationships
and supporting our communities, including the
procurement of materials and supplies from over
35 Indigenous owned and operated businesses.
16
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOur company | Nitrogen | #3 Global nitrogen producer
We produce nitrogen at nine strategically located
production facilities throughout Canada, the US and
Trinidad and operate four regional product upgrade
sites in North America. Our North American operations,
which account for approximately 85 percent of our
Nitrogen sales volumes, have access to some of the lowest
cost natural gas in the world and are well positioned to
serve agriculture and industrial markets. Our Trinidad
operations support sales to approximately 30 countries
and have natural gas supply contracts indexed to
ammonia prices.
We produce a diverse portfolio of nitrogen products and
have flexibility to optimize product mix in changing
market conditions. Our transportation and distribution
network leverages truck, rail, pipeline, barge and marine
vessel modes, including direct access to tidewater in both
the US and Trinidad.
We leverage CCUS at two of our facilities and have
captured and sold at least 1 million tonnes of CO2 annually
for the last five years. We continue to support our grower
customers to reduce their environmental impact by
expanding our portfolio of manufactured products,
including enhanced efficiency fertilizers such as ESN®.
| Phosphate | #2 North American phosphate producer
Nutrien has two large integrated phosphate production
facilities and four regional product upgrade sites in the
US. Our high-quality phosphate rock enables production
of a diverse mix of phosphate products, including solid
and liquid fertilizers, feed and industrial acids. We are
the largest producer of purified phosphoric acid in
North America and sell the majority of our product in
this market, benefiting from our extensive distribution
network and customer relationships.
We have a strong focus on environmental stewardship,
reclaiming thousands of acres of mined land every year
to useful purposes, remediating soil and groundwater
including the planting of over half a million trees in
2023, and reducing environmental risks through our
commitment to sustaining our assets at the highest level.
17
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOur company Operating
environment
18
02Nutrien Annual Report 2023OverviewFive-year highlightsFinancial statements and notesMD&AOur companyOperating environmentStrategyGovernanceKey enterprise risksResults Overview
Overview
MD&A
Five-year highlights
Financial statements and notes
Our company
Operating environment
Strategy
Governance
Key enterprise risks
Results
Paraná, Brazil
Brazil is one of the largest and
fastest growing agriculture
markets in the world. The
country produces over 150
million tonnes of soybeans
annually, which requires a
significant amount of potash.
Brazil was the largest market for
Canpotex potash sales in 2023.
Nutrien Annual Report 2023
19
Megatrends
We define megatrends as emerging macro-level trends and global dynamics that we believe
will have ongoing impacts on business, government and society that are expected to shape our
operating environment over the next decade. Tracking and analyzing megatrends informs Nutrien’s
strategy. See page 28 for more information on our related strategy and page 44 for our related key
enterprise risks.
Food security
Despite advances in modern
agriculture, food security remains a
global challenge. Producing enough
nutritious food for the world’s eight
billion people, and transporting it
to where it is needed, is straining
existing global resources. It is
estimated that over 10 percent of the
world’s population is food insecure.
A rising population, expected to grow
by close to two billion people by 2050,
is further increasing the scale of
this challenge.
The agricultural landscape continues
to evolve and be influenced by
sustainability practices, climate
change and social trends that could
impact the ability to address global
food security challenges. Nutrien is
well positioned to develop innovative
products and solutions to help our
customers feed a growing population
while addressing the environmental
and social challenges the agriculture
industry is facing.
Related enterprise risks:
– Agricultural changes and trends
– Climate change
– Stakeholder support
20
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOperating environment Climate change
Our business, industry, customers and other stakeholders
in the agriculture value chain face long-term challenges
related to climate change, including increasing expectations
for climate actions and reductions of GHG emissions.
Physical risks from a changing climate can impact our
operations, our customers and our supply chain. These
include more intense weather events, longer droughts,
rising sea levels, and changes in average temperature and
precipitation patterns. Global decarbonization ambitions
and the resulting energy transition are driving carbon
regulations and informing capital allocation priorities
of investors.
Nutrien faces evolving challenges related to potential
regulatory changes, including carbon pricing. At the same
time, a transition to a low-carbon economy could create
significant opportunities for Nutrien to help growers
manage these impacts and improve their resilience by
facilitating the adoption of climate-smart agriculture
practices and developing products that can improve yields
in more challenging conditions. The energy transition
is accelerating the development of technologies that can
support our GHG emission reduction efforts.
Related enterprise risks:
– Climate change
Technology
and digitalization
Digital technologies and access to vast amounts of data
are supporting the transformation of our industry and
Nutrien. In mining operations, advances in automation
and autonomous mining are improving safety by
removing workers from the more hazardous areas and
enabling productivity increases. Agriculture and food
systems are undergoing technological changes driven by
big data, digital connectivity, artificial intelligence and
innovations in biotechnology.
The regulatory environment around artificial intelligence
continues to evolve across multiple jurisdictions. This
evolution can cause uncertainty as to how these tools
could be deployed and leveraged, how privacy and
security safeguards will be incorporated, and levels of
investment in innovation.
We also have an opportunity to help turn data into insights
for our grower customers, and for our grower customers
to turn those insights into actions, which presents further
opportunities through the agriculture value chain.
The proliferation of technology and data also creates
increased risks to our information systems and customer
data. Our dependence on technology may contribute to
cyber-related events becoming more disruptive and costly.
As we gather increasingly more data from our customers,
we are continually evolving our practices to align with
data security and privacy regulations.
Related enterprise risks:
– Cybersecurity threats
– Agricultural changes and trends
21
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOperating environment Societal expectations
Stakeholders are increasingly focused on corporate
sustainability performance and disclosure. Investors
are considering environmental and social principles
alongside traditional financial metrics in capital allocation
decisions and, along with regulators, are considering
those principles in evaluating disclosure enhancements.
In addition to climate-related matters, societal concerns
include impacts on ecosystems and biodiversity, as well as
challenges faced by underrepresented groups inside and
outside of the workplace.
In response to these expectations, governments may
impose new regulations or increase the stringency of
existing ones. If we are not able to meet stakeholder
expectations for environmental and social performance
and disclosure, it could be more difficult to access cost-
efficient capital, retain talent or maintain our freedom to
operate.
Nutrien believes that our response to these trends will not
only help to address some of the world’s most pressing
challenges but also create opportunities to differentiate
ourselves from our competitors. Delivering on our
sustainability commitments can attract new investors,
support internal engagement, and help attract and retain
talent.
Related enterprise risks:
– Changing regulations
– Stakeholder support
– Talent and organization culture
Geopolitical volatility
Geopolitical turmoil around the world is being driven
by nationalism, polarization and economic instability.
Due to globalization, regional events are having global
impacts. In particular, the continued war in Eastern
Europe and the more recent escalation of tensions in the
Middle East have resulted in, and may continue to result
in, supply chain disruptions and price volatility for
energy and several commodities.
Global geopolitical instability and resulting disruptions
could impair our ability to distribute our products in a
cost-effective and timely manner to our customers or
disrupt our supply chains. If significant geopolitical events
occur in one of the countries where we have significant
operations, the impact could be more direct and affect
our operations, production or revenues. Conversely,
disruptions in markets could result in improvements to
our financial performance through increased market
share or higher sales.
Related enterprise risks:
– Political, economic
and social instability
22
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOperating environment Market fundamentals and outlook
We carefully monitor market fundamentals and our competitive landscape in order to anticipate
and adapt to the environment in which we operate. Understanding our operating environment and
expectations for the future positions us to better identify and manage risks that could jeopardize our
ability to deliver on our strategy and capitalize on emerging opportunities.
Retail
Crop input sales by product (2023) 1
(percent)
Crop input sales by region (2023) 1
(percent)
$130B
2023 total market crop
input sales 1
22% seed
29% crop
protection
49% crop
nutrients
42% Brazil
10%
Australia
43% US
5%
Canada
Source: USDA, StatsCan, ABARES, Conab, IMEA,
AgbioInvestor, Nutrien
1 Represents total market sales of seed, fertilizer and crop
Source: USDA, StatsCan, ABARES, Conab, IMEA,
AgbioInvestor, Nutrien
1 Represents total market sales of seed, fertilizer and crop
protection products in the US, Canada, Australia and Brazil.
protection products in the US, Canada, Australia and Brazil.
Potash
Global potash demand (2023)
(percent)
Global potash production (2023)
(percent)
67-68Mmt
2023 global potash
(KCI) demand
17% Other
15% Other
Asia
5% India
27% China
Source: CRU
15%
North
America
21%
South
America
12% Other
10% Middle
East
11% China
12% Belarus
Source: CRU
36%
Canada
19%
Russia
Nitrogen
Global nitrogen demand (2023)
(percent)
Global nitrogen production (2023)
(percent)
~155Mmt
2023 global nitrogen
(N) demand
14% Other
11% Europe
8% South
America
13% North
America
Source: SPGCI
23%
China
18%
India
13%
Other Asia
18% Other
9% Europe
11% North
America
11% Middle
East
Source: SPGCI
26%
China
14%
India
11%
Other Asia
Phosphate
Global phosphate demand (2023)
(percent)
Global phosphate production (2023)
(percent)
~51Mmt
2023 global phosphate
(P2O5) demand
19% Other
19% South
America
11% North
America
Source: CRU
23%
China
14%
India
14% Other
Asia
18% Other
11% Middle
East
9% Russia
11% North
America
Source: CRU
1 Represents total market sales of seed, fertilizer and crop protection products in the US, Canada, Australia and Brazil.
38% China
13% Morocco
23
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOperating environment
Retail
Market fundamentals
Total crop protection, seed and
fertilizer sales in our major Retail
operating regions equated to
approximately $130 billion in 2023.
As the need to feed the world’s
population increases, growers are
challenged to sustainably increase
yields from a finite arable land base.
This drives growth in demand for
crop inputs and agronomic services.
The agriculture retail industry is
highly fragmented in most of the
major markets in which we operate,
primarily composed of small and
medium-sized competitors. Scale,
reliability of supply and the ability
to provide innovative products
and solutions, including digital
offerings that support sustainable
agriculture, are increasingly
important to growers.
In North America, the largest crops
grown include canola, corn, cotton,
soybean and wheat. It is a more
mature market with growers
leveraging advanced agriculture tools
and who are willing and able to invest
in high- value products and services.
In Australia, growers require a full
suite of crop production inputs but
also solutions for livestock, water and
irrigation services.
Brazil is one of the world’s largest
and fastest growing agriculture
markets. It is currently the largest
soybean producer and the third
largest producer of corn globally. Its
retail industry is highly fragmented,
and there remains opportunity for
investment and adoption of more
advanced products and services at the
grower level.
Market outlook
Global grain stocks-to-use ratios
remain historically low going into the
2024 growing season as tightening
supplies of wheat and rice have offset
increased corn supplies in the US
and Brazil. We expect weather and
geopolitical issues will continue to
impact grain and oilseed production,
exports and inventory levels.
Crop prices have declined from
historically high levels in 2022, but
lower crop input prices have resulted
in improved demand, evidenced
by the strong North American fall
application season in 2023. We expect
US corn plantings to range from
91 to 92 million acres in 2024 and
soybean plantings to range from
87 to 88 million acres.
In Brazil, dry weather during the
summer crop growing season and
lower corn prices could result in lower
corn area in 2024. Brazilian growers
are expected to continue to expand
soybean acreage, which we anticipate
will support the need for strong
fertilizer imports in the second and
third quarters of 2024.
In Australia, growers have benefited
from multiple years of above-average
yields and fundamentals remain
supportive entering 2024. Timely
precipitation led to higher-than-
expected winter crop production,
however if the El Niño weather pattern
continues, it could pose a risk for the
2024 growing season.
US ag retail industry profile (2023)
(percent)
US grower cash production margins 1
(US$ margin per acre)
3% CHS
4% Wilbur Ellis
5% Growmark
6% Simplot
7% Helena
30% Co-ops
22% Nutrien
23% Independents
Corn
$431
$370
Soybeans
$372
$331
10-year avg
2024F
10-year avg
2024F
Source: Croplife
Source: CRU, Fertecon, USDA, Bloomberg, Nutrien
1 Forecasts use the December 2024 corn and November 2024 soybean futures contracts as of
January 30, 2024.
24
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOperating environment
Potash
Market fundamentals
Potash strengthens root systems
including water uptake, drought
and disease tolerance and increases
the uptake of other nutrients – all
important in volatile growing
conditions. Potash demand growth
is driven by increasing nutrient
requirements of higher-yielding crops
and improving soil fertility practices,
particularly in emerging markets
where potash has been historically
under-applied and crop yields lag.
High-quality potash reserves in
significant quantities are limited to a
small number of countries.
Canada has the largest known global
potash reserves, accounting for
approximately 40 percent of the total.
More than 75 percent of the world’s
potash capacity is held by the six
largest producers.
Building new production capacity
requires significant capital and time
to bring online. Brownfield
projects have a significant per-
tonne capital cost advantage over
greenfield projects.
Most major potash-consuming
countries in Asia and Latin America
have limited or no production
capability and rely on imports to
meet their needs. Trade typically
accounts for approximately three-
quarters of demand for potash,
resulting in a globally diversified
marketplace.
Market outlook
Global potash demand was strong
through the second half of 2023, and
we estimate full-year shipments were
between 67 to 68 million tonnes.
The increase was supported by
strong consumption and increased
imports in key markets such as North
America, China and Brazil.
We expect global potash demand
will continue to recover towards
trend levels in 2024 with full-year
shipments projected between 68-71
million tonnes. We anticipate a
relatively balanced global market
with incremental supply from
producers in Canada, Russia, Belarus
and Laos.
We are seeing strong potash demand
ahead of the North American spring
application season as channel
inventories were tight to start the
year. Potash demand in Southeast
Asia is expected to increase
significantly in 2024 due to much
lower inventory levels compared
to the prior year and favorable
economics for key crops such as
oil palm and rice. We expect lower
potash imports from China compared
to the record levels in 2023 but for
demand to remain at historically
high levels driven by increased
consumption.
Global potash demand
(millions of tonnes KCl)
Potash demand in key regions
(millions of tonnes KCl)
69
70
67
65
64
60
60
61
71
68
68
67
17.0
16.0
16.0
18.0
16.5
15.5
10.5
9.0
10.5
10.3
10.0
4.0
8.0
2015
2016
2017
2018
2019
2020
2021
2022
2023E
2024F
2
0
2
3.2
E
3
3.0
F
4
2
0
2
India
F
0
2
3
2
0
2
E
4
2
0
2
Other
Asia
F
4
E
3
2
2
0
2
North
America
2
0
2
F
4
E
3
2
0
2
Latin
America
Source: IFA, Argus, CRU, Nutrien
Source: Industry Consultants, Nutrien
3
2
0
2
E
4
2
0
2
China
F
25
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOperating environment
Nitrogen
Market fundamentals
Nitrogen is an essential crop nutrient
and is a fundamental building block
of plant proteins that improve both
crop yield and quality. The necessity
of nitrogen for crop yield supports a
strong and growing demand source
for nitrogen fertilizers. Additionally,
nitrogen is used as an input in
many industrial processes and has
the potential to provide further
value as markets for low-carbon
ammonia emerge.
Production of nitrogen products is
the most geographically diverse of
the three primary crop nutrients
due to the widespread availability of
hydrogen sources. Access to reliable
and competitively priced energy
feedstock supply is an important
driver of profitability, as recent
geopolitical events have created
additional volatility in certain global
energy markets. North American
nitrogen producers currently have
an advantaged cost position due to
the relatively low price of natural gas
compared to competitors in Europe
and Asia.
The US remains one of the largest
importers of nitrogen products and
a key driver of global trade despite
a significant increase in domestic
capacity and production over the
past decade. China and India are
the largest-consuming countries of
nitrogen products, accounting for
approximately 40 percent of the
world’s consumption.
Market outlook
We expect nitrogen supply
constraints to persist in 2024,
including limited Russian ammonia
exports, reduced European operating
rates and Chinese urea export
restrictions. North American natural
gas prices remain highly competitive
compared to Europe and Asia, and we
expect Henry Hub natural gas prices
to average approximately $2.50 per
MMBtu for the year.
The US nitrogen supply and demand
balance is projected to be tight ahead
of the spring application season, as
nitrogen fertilizer net imports in the
first half of the 2023/2024 fertilizer
year were down an estimated 55
percent compared to the three-year
average. Global industrial nitrogen
demand remains a risk in 2024 as
industrial production, most notably
in Europe and Asia, has yet to
rebound to historical levels.
Global ammonia demand
(millions of tonnes)
Natural gas prices in key regions
(US$ per MMBtu)
Agriculture
Industrial, feed, other
US (Henry Hub)
Canada (AECO)
Europe (TTF)
181
178
177
181
185
191
189
186
189
193
$50
$30
$10
$0
2015
2016
2017
2018
2019
2020
2021
2022
2023E
2024F
2019
2020
2021
2022
2023
2024F 1
Source: SPGCI
Source: ICE, CME, Nutrien
1 Futures prices as of February 7, 2024. AECO based on US Henry Hub forecast less
$1.00/MMBtu of basis.
26
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOperating environment
Phosphate
Market fundamentals
Phosphorus is essential to all living
things and is key to energy reactions
in the plant, particularly
photosynthesis, and vital to plant
growth. Demand for phosphate
fertilizers has steadily increased
over the last 20 years. Additionally,
phosphate is used as an input in
many feed and industrial processes.
Phosphate rock is found in significant
quantity and quality in only a handful
of geographic locations. Given
the concentration of deposits in
North Africa and the Middle East,
government involvement is a major
consideration when evaluating
potential phosphate project
developments.
The majority of new phosphate
fertilizer supply over the past
decade was from producers in
China, Morocco, Russia and
Saudi Arabia. As a result, total US
phosphate production declined by
approximately 30 percent over
this period.
China’s trade policy has a major
impact on the global phosphate
market. In 2023, Chinese DAP/MAP
exports were down approximately
30 percent from 2021 levels as a result
of export restrictions.
India and Brazil are the largest
importers of phosphate fertilizers,
with limited domestic production.
In more mature markets like North
America, we have seen continued
demand growth for phosphate
fertilizers that incorporate secondary
nutrients and micronutrients like
Nutrien’s MAP+MST product.
Market outlook
Phosphate fertilizer markets have
remained relatively strong in the
first quarter of 2024, particularly
in North America where channel
inventories were low entering the
year. We expect Chinese phosphate
export restrictions to be similar to
2023 levels and tight stocks in India
to support demand ahead of their key
planting season.
Global P2O5 demand
(millions of tonnes)
China DAP/MAP exports
(millions of tonnes)
Fertilizer
Industrial and feed
48
49
51
49
50
52
53
49
51
53
10
8
7
6
7.5
6.5
2015
2016
2017
2018
2019
2020
2021
2022
2023E
2024F
2020
2021
2022
2023
2024F
Source: CRU
Source: CRU, Argus, Nutrien
27
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AOperating environment
Five-year highlights
03
Strategy
28
Nutrien Annual Report 2023OverviewFinancial statements and notesMD&AOur companyOperating environmentStrategyGovernanceKey enterprise risksResults Overview
MD&A
Five-year highlights
Financial statements and notes
Our company
Operating environment
Strategy
Governance
Key enterprise risks
Results
Victoria, Australia
Canola is Australia’s major
oilseed crop. Grown in
Australia’s Grain Belt, canola
production has increased
significantly to an average of
3 million tonnes per year.
Nutrien has 385 Retail selling
locations in Australia to support
growers of many different crops,
including canola.
Nutrien Annual Report 2023
29
Nutrien’s strategy
Our vision is to be the leading global integrated agriculture solutions provider, delivering
superior shareholder value through sustainable operations. In pursuit of our vision,
we utilize our integrated business to optimize enterprise value by enhancing our
core business, allocating capital to high-value strategic investments and progressing
initiatives that fortify our business for the future.
Enhance
our core
business
Advance
high-value
strategic
initiatives
Fortify our
business
for the
future
Increase operational efficiency
and asset utilization, maximize
cost savings, and focus on
integration and investments
that enhance margins and free
cash flow.
Allocate capital to high-
value and high-conviction
investments that generate
significant long-term returns
for our shareholders.
Focus on initiatives that reduce
GHG emissions, enhance
on-farm environmental
performance, invest in our
people and procurement
programs, and position our
Company to sustainably deliver
on our current and future
business needs.
30
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AStrategy Retail
strategic
priorities
We are advancing our global Retail network through a
combination of organic growth, accretive acquisitions,
and optimization initiatives that expand our ability to
provide whole-acre solutions for growers and enables
us to be the leading customer-first ag solutions provider.
Achieve best-in-class commercial execution, rationalize costs and maximize network
efficiencies and integration synergies
Business
optimization
Enhance our
core business
Digital
innovation
Enhance our
core business
•
Targeted
expansion and
proprietary
products
Advance high-value
strategic initiatives
Sustainability
outcomes
Fortify our business
for the future
•
Key 2023 activities
•
Centralized and modernized five locations in our core markets, allowing us to serve
the customer more safely and efficiently
Paused our expansions and acquisitions in Brazil, focusing on integrating recently
acquired businesses
Optimized our North American footprint through the closure and consolidation of
10 locations
•
•
Prioritize digital capability development that supports our core business offering, improves
decision-making, drives efficiency and enhances our grower value proposition
Key 2023 activities
•
Launched a digitally enabled financing platform in Australia, enhancing our grower
value proposition
Empowered our grower customer financial operations with new digital decision-
making tools through advancements to our digital innovation in North America
Grow earnings and share in core geographies through targeted network expansion and
investment in high growth categories, such as biological product technologies
Key 2023 activities
•
Contributed $1.0 billion in gross margin from our global proprietary products
portfolio, with growth of 6 percent per year over the last five years
Continued to extract value from our innovation pipeline, realizing over $750 million
in global proprietary plant nutrition and biostimulant sales in 2023
Completed 23 acquisitions in our core Retail markets
•
•
Development of scalable sustainability programming, featuring solutions that improve
grower productivity and efficiency and generate value for Nutrien and our diverse group
of partners
Key 2023 activities
•
Doubled our sustainably engaged acres to two million, continuing integration of our
high-value products and services into our outcome-based sustainability programming
Generated first verified GHG offsets and insets from our sustainability programming,
creating opportunities for deeper value-chain collaboration and partner connectivity
31
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AStrategy Potash
strategic
priorities
We are utilizing our world-class Potash network and
integrated supply chain to respond to market supply and
demand dynamics. We continue to invest in efficiency
and new technologies to manage our costs, optimize and
modernize our asset base, advance our sustainability
commitments, and preserve the reliability and safety of
our operations.
Deliver initiatives that improve safety, reduce costs, increase network flexibility
and improve our environmental footprint
Operational
excellence
Key 2023 activities
•
Enhance our
core business
•
Increased annual ore tonnes cut using autonomous mining by 40 percent and continue
to scale these technologies across our network
Completed ore recovery projects alongside other efficiency related initiatives to
maintain an advantaged global cost position and reduce waste
Pursue opportunities that promote growth and strengthen the channel to
our customers
Key 2023 activities
•
Enhanced value of our integrated business by sourcing a significant majority of
Retail’s North American supply needs from our six potash mines in Saskatchewan
Ensure a flexible go-to-market strategy that responds to variable conditions,
satisfies demand requirements and optimizes long-term value as the market grows
Key 2023 activities
•
Paused the accelerated ramp-up of our annual potash production capability to
18 million tonnes in response to market conditions and continued to advance certain
in-flight projects to maximize value of capital spent and support long-term growth
Action our workforce strategy to deliver talent and skills for tomorrow and support our
future needs
Key 2023 activities
•
Executed attraction and retention initiatives that strengthen our workforce and
support diversity and inclusion, including local and Indigenous partnerships
Supply chain
optimization
Enhance our
core business
Leverage
flexibility and
optimize value
Advance high-value
strategic initiatives
Strengthen our
workforce
Fortify our business
for the future
32
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AStrategy Nitrogen
strategic
priorities
We are enhancing our strategically positioned Nitrogen
business through investment projects that improve the
reliability and energy efficiency of our facilities while
selectively increasing capacity and product mix flexibility.
We are unwavering in our pursuit of safe, reliable and efficient
operations while continuing to leverage process and product
innovations to proactively address sustainability needs.
Maintain globally competitive position, increasing product mix flexibility and improving
reliability, efficiency and supply chain performance
•
•
•
Operational
excellence
Enhance our
core business
Invest in
our North
American
assets
Advance high-value
strategic initiatives
Sustainability
outcomes
•
Fortify our business
for the future
Key 2023 activities
•
Completed major maintenance turnarounds at our Geismar and Borger sites,
addressing reliability needs and increasing efficiency
Completed initial construction and technology development of our Nitrogen
Real-time Operations Center, providing troubleshooting, monitoring and
optimization support across our entire network of 13 nitrogen production and
upgrade facilities
Selectively invest in high-conviction, high-return growth opportunities in North America,
supporting the needs of the market
Key 2023 activities
•
Expanded our Geismar facility, adding incremental ammonia and nitric acid
production capacity
Completed UAN debottleneck projects at our Geismar site, allowing for the
expansion of production as additional nitric acid capacity projects planned for
2024 are completed
Suspended work on our Geismar clean ammonia plant as we monitor cost estimates
and the evolving market for clean ammonia
Maintain position as an industry leader in low-carbon nitrogen production and
continue to leverage process and product innovations to proactively address
sustainability needs
Key 2023 activities
•
Completed our GHG Phase 1 abatement program, including the CO2 tie-in at our
Redwater plant and an N2O abatement project at Geismar
Increased our low-carbon ammonia production capability to 1.2 million tonnes
across our Geismar, Redwater and Joffre sites
33
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AStrategy Phosphate
strategic
priorities
We are optimizing our phosphate business by continuing
to focus on safety, sustainability and operating
efficiencies, while leveraging our product mix and
adapting to market conditions.
Increase base business efficiency through reliability and efficiency improvements
Operational
excellence
Key 2023 activities
•
Enhance our
core business
•
Completed maintenance turnarounds at both Aurora and White Springs sites focused
on key reliability improvements
Achieved a 3 percent improvement to our preventative maintenance compliance
metric, a key leading reliability indicator
Maximize value via flexibility of product portfolio mix and focus on liquid fertilizer, feed,
purified, and other premium product opportunities in North America
Premium
products and
mix flexibility
Key 2023 activities
•
•
Enhance our
core business
Fulfilled 56 percent of sales volumes attributable to higher-margin products,
including liquid fertilizer, feed and purified
Increased sales of our micronized sulfur dry phosphate product, MAP+MST by
125 percent compared to 2022 levels
Continue to advance reclamation efforts and proactively address environmental risks
Key 2023 activities
•
Planted over 500,000 trees and continued our land reclamation efforts at our Aurora
and White Springs sites
Reclamation
and
environmental
risk reduction
Fortify our business
for the future
34
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AStrategy Capital allocation
Our capital allocation framework prioritizes sustaining safe and reliable operations, a healthy
balance sheet, strategically investing in our business, and providing meaningful returns to our
shareholders through a stable and growing dividend and share repurchases. This balanced
approach supports our strategy and enables us to enhance our core business, advance high-value
strategic initiatives and fortify our business for the future.
Safe and reliable
operations
• Sustain our assets to support safe and reliable operations
• Focus on continuous improvement initiatives and
investments that enhance the utilization rates, reliability
and efficiency of our assets
Strong balance
sheet
• Provide sufficient and flexible access to liquidity while
optimizing the cost of our capital through the cycle
• Expect to maintain adjusted net debt/adjusted EBITDA
leverage ratio below three times, through the cycle
Shareholder
returns
• Return capital to shareholders through a combination of
stable and growing dividends and share repurchases
• Factor reduction in share count in the decision criteria for
future dividend per share growth
High-value growth
opportunities
• Selectively invest in high-value and high-conviction
opportunities that are expected to generate significant
long-term returns
• Evaluate investment opportunities by strategic fit, project
economics using various financial return metrics and
sustainability factors to align with our 2030 commitments
and targets
35
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AStrategy Capital allocation
Safe and reliable
operations
Sustaining, mine
development
and pre-stripping
capital
expenditures 1
$1.7B
2023
Strong balance
sheet
Adjusted Net Debt/
Adjusted EBITDA 2
1.9X
2023
Shareholder
returns
Cash used for
dividends and
share repurchases 1
$2.1B
2023
Sustaining, mine development
and pre-stripping capital
expenditures (2023)
(percent)
84% sustaining
16% mine
development
& pre-stripping
Debt and equity 4,5 (2023)
(percent)
69% equity
31% debt
Cash used for dividends and
share repurchases (2023)
(percent)
50%
dividends
50% share
repurchases
High-value
growth
opportunities
Investing capital
expenditures 1
Business
acquisitions 3
$1.0B
2023
$0.2B
2023
Investing capital expenditures 1
(2023)
(percent)
5%
Phosphate
& other
24%
Nitrogen
39% Retail
32% Potash
1 These are supplementary financial measures. See the “Other Financial Measures” section.
This is a capital management financial measure that includes a non-GAAP component. See the “Non-GAAP Financial Measures” and “Other Financial Measures” sections.
2
3
Net of cash acquired.
4 As at December 31, 2023.
5 Debt includes short-term debt, long-term debt and lease liabilities, including the current portions of each where applicable.
36
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AStrategy
Key 2023 actions
• Completed reliability work and replaced key identified
end-of-life assets across our operations, including major
maintenance turnarounds and planned outages at five of
our Nitrogen sites
•
Invested in maintenance and safety-related initiatives for
our Retail facilities
Key 2023 actions
• Maintained our BBB investment-grade credit rating
• Repaid $500 million in senior notes that matured during the
year and issued a total of $1.5 billion of 5-year and 30-year
senior notes
• Reduced planned capital expenditures by $300 million
providing flexibility on capital allocation alternatives
Key 2023 actions
• Returned a total of $2.1 billion to shareholders through
dividends and share repurchases
• Dividend provided an average yield of 3.3 percent in 2023
•
In February 2024, we announced a 2 percent increase to our
quarterly dividend to $0.54 per share, our sixth increase
since 2018
Key 2023 actions
• Completed 23 Retail acquisitions across the US, Australia
and Brazil
•
Invested in our Potash network including the procurement
of additional autonomous mining machines and technology
• Completed Nitrogen brownfield expansion projects at
our Geismar facility, increasing ammonia and nitric acid
capability
•
Invested in digital, proprietary products and sustainability
related strategies to grow the business and reduce our
environmental impact
37
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AStrategy Overview
MD&A
Five-year highlights
Financial statements and notes
Our company
Operating environment
Strategy
Governance
Key enterprise risks
Results
04 Governance
38
Nutrien Annual Report 2023
Overview
Overview
MD&A
Five-year highlights
Financial statements and notes
Our company
Operating environment
Strategy
Governance
Key enterprise risks
Results
Bali, Indonesia
Indonesia is the world’s
fourth largest producer of rice
and is a key producer of oil
palm, fruits and vegetables.
Indonesia is one of the largest
importers of potash, with
strong growth prospects,
which Nutrien is a key
supplier through Canpotex.
Nutrien Annual Report 2023
39
Overview
MD&A
Five-year highlights
Financial statements and notes
Governance
Corporate governance
Nutrien’s Corporate Governance Structure includes policies and processes that define the roles
of the Board and the Executive Leadership Team (“ELT”). Our Board oversees risk management
and the execution of our corporate strategy. Below are highlights of our corporate governance
practices. For more information, see our most recent Management Information Circular.
Board diversity
Having a mix of directors on the Board from varied
backgrounds and with a diverse range of experience
and skills fosters enhanced decision-making capacity
and promotes strong corporate governance. Our Board
Diversity Policy includes a target that women comprise
no fewer than 30 percent of the Board members. As of
December 31, 2023, four of our directors were women
(33 percent of the total number of directors).
Executive compensation
Nutrien’s compensation framework is based on a pay-for-
performance philosophy, with the majority of executive
compensation being at risk. Since 2020, a component of
executive compensation has been tied to demonstrated
sustainability performance, including the addition
of progress on GHG emission reduction projects and
Core business skills 1
(percent of Board of Directors)
Human Resources
Strategy
Senior Leadership
International Business
Sustainability
Operations (including Safety & Sustainability)
Innovation, Technology and Security
Public Policy & External Relations
33%
33%
Health & Workplace Environment
25%
1 As disclosed in Nutrien’s 2023 Management Proxy Circular.
75%
67%
58%
50%
diversity-related metrics in 2021. Each year, we include
an advisory “say on pay” vote at our annual meeting (in
line with 2019 amendments in the Government of Canada’s
Bill C-97).
Board skills
Our Board competencies and skills matrices are essential
tools to evaluate whether the Board has the right skills,
perspectives, experience and expertise for proper
oversight and effective decision making. The Board
regularly reviews the skills matrix.
Core industry experience 1
(percent of Board of Directors)
100%
100%
Finance / Audit & Risk
Mergers & Acquisition
Mining, Energy & Exploration
75%
75%
75%
Distribution
58%
Retail Business
42%
Agri-Business
17%
40
Nutrien Annual Report 2023
Overview
MD&A
MD&A
Five-year highlights
Financial statements and notes
Governance
Board of Directors
Russell Girling
Chair
Ken Seitz
President and Chief
Executive Officer
Christopher Burley
Director
Maura Clark
Director
Michael Hennigan
Director
Miranda Hubbs
Director
Raj Kushwaha
Director
Alice Laberge
Director
Consuelo Madere
Director
Keith Martell
Director
Aaron Regent
Director
Nelson Luiz
Costa Silva
Director
Executive Leadership Team
Ken Seitz
President and
Chief Executive
Officer
Noralee Bradley
Executive Vice
President, External
Affairs and Chief
Sustainability and
Legal Officer
Pedro Farah
Executive Vice
President and Chief
Financial Officer
Andrew Kelemen
Executive Vice
President,
Corporate
Development and
Chief Strategy
Officer
Chris Reynolds
Executive Vice
President and
President, Potash
Jeff Tarsi
Executive Vice
President and
President,
Global Retail
Mark Thompson
Executive Vice
President, Chief
Commercial
Officer
Trevor Williams
Executive Vice
President and
President, Nitrogen
and Phosphate
Nutrien Annual Report 2023
41
Risk governance
Risk management is an integral part of doing business and is governed by our Board, which has
the highest level of oversight for risk governance. The Board is responsible for overseeing the
execution and alignment of Nutrien’s corporate strategy and risk management processes.
Nutrien’s ELT has the responsibility of ensuring the
Company’s principal risks are being appropriately
identified, assessed and addressed. Management keeps
the Board and each of the Board committees regularly
apprised of risks and developments relevant to their
mandates.
Responsibility and accountability for risk management are
embedded in all levels of our organization, and we strive
to integrate risk management into key decision-making
processes and strategies. By considering risk throughout
our business, we seek to effectively manage the risks
that could have an impact on our ability to deliver on
our strategy.
Role of the Board committees
While the Board as a whole oversees our strategy and
risk management processes, each Board committee has
oversight over business topics and certain risk areas
relevant to their committee mandate. More information
can be found in Nutrien’s Board and Board committee
charters on our website at nutrien.com.
Board/Board Committee
Oversight includes the following business topics or risk areas
• Corporate strategy
• Oversight of safety, health,
environmental and security matters
• Risk management
• Human resources and compensation
• Governance and compliance
• Accounting and financial reporting
•
Internal controls
• Compliance
• Financial risk management
• Corporate governance
• Board diversity
• Director orientation and continuing education
• Board evaluation
• Executive compensation
• Succession planning
• Equity, diversity and inclusion, including the Company’s
Indigenous Strategy as it relates to Indigenous
employment and human resources matters with
appropriate coordination with the S&S Committee
• Learning and development
• Sustainability targets and goals
• Safety and sustainability performance and strategy
• Risks, strengths and opportunities
related to safety and sustainability
including climate-related impacts
• Cybersecurity and data privacy
• Status of remediation projects and environmental
provisions
• The Company’s Indigenous Strategy as it relates to
Indigenous engagement and stakeholder relations, with
appropriate coordination with the Human Resources &
Compensation Committee
Board of Directors
Audit Committee
Corporate Governance &
Nominating Committee
Human Resources &
Compensation Committee
Safety & Sustainability
(“S&S”) Committee
42
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AGovernance Governance for climate and sustainability
The Board’s S&S Committee has oversight over Nutrien’s
climate-related risks and opportunities. The S&S
Committee generally meets on a quarterly basis and covers
many sustainability related matters within its mandate
including those related to climate. Specifically, the S&S
Committee’s role includes overseeing: policies relating
to sustainability and progress towards sustainability
goals; approval of Nutrien’s annual Global Sustainability
Report; reviewing progress against Nutrien’s Feeding
the Future Plan and associated sustainability targets and
goals; and review of Nutrien’s climate-related risks and
opportunities. This committee directly advises the Board
on these and other sustainability matters noted above.
Risk management process
Risk management is integrated into our strategy and business activities to facilitate informed decision
making and responsible management of resources. Our Enterprise Risk Management process is
overseen by our Enterprise Risk Management Team and guided by our global risk management
framework. The framework promotes consistent and integrated application of risk management
principles and processes across our organization and is scalable to support all levels of the business.
Nutrien’s operating segments and corporate functions
use this framework to identify, assess and develop
mitigation actions for key risks that could affect their
strategy, operations or future performance. Assessment
criteria embedded in the risk framework allow for
comparability of different types of risks, including
climate-related risks. Key criteria include the likelihood
of impacting our business and the potential severity
of impact.
Risks are evaluated individually and collectively at the
management level to fully understand Nutrien’s risk
landscape and identify interdependencies between risks.
A consolidated view of our risks is presented to our ELT
and senior leaders for review and discussion, along with
outputs from external environment scans and emerging
risk workshops. Nutrien’s significant enterprise-wide
risks are then presented to the Board at least annually.
43
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AGovernance MD&A
Five-year highlights
Our company
Operating environment
Strategy
Governance
Key enterprise risks
Results
Key enterprise
risks
44
05Nutrien Annual Report 2023OverviewFinancial statements and notes Overview
Overview
MD&A
Five-year highlights
Financial statements and notes
Our company
Operating environment
Strategy
Governance
Key enterprise risks
Results
Texas, US
Last year, the US was the
world’s leading exporter of
cotton, exporting 2.8 million
tonnes. Under our Dyna-Gro
brand, Nutrien sells proprietary
cotton seed across North
America. Our global proprietary
seed revenue has grown by over
25 percent since 2021.
Nutrien Annual Report 2023
45
Key enterprise risks
Nutrien characterizes a key risk as a risk or combination of risks that could threaten the achievement of
our vision, our business model, future financial performance or ability to deliver on our strategy. Our key
enterprise risks are discussed below and while these represent our significant risks, we also continue
to be exposed to other important general business, operational and climate-related risks. For a more
detailed discussion of these key risks and other risks that may affect us, refer to Nutrien’s 2023 Annual
Information Form.
1 | Competition and shifting market fundamentals
Description
Global macroeconomic conditions and shifting market
fundamentals – including trade tariffs and trade
restrictions, volatility in global markets, supply chain
constraints, increased price competition and/or new
entrants, geopolitical conditions, and/or a significant
change in agriculture production or consumption
trends – could lead to a sustained environment of
reduced demand for our products and/or low or volatile
commodity prices and negatively impact our short- and
long-term profitability.
Risk management approach
Our global footprint, integrated business, and portfolio
of products, services and solutions are designed to
enable us to respond to changing economic conditions.
We have a favorable cost-structure and the flexibility to
make operational changes across our portfolio in order
to minimize the impact of changing market dynamics.
We prioritize maintaining a strong balance sheet and
focus on initiatives that strengthen the advantages of our
integrated business, drive operational efficiencies and
increase free cash flow.
2 | Agricultural changes and trends
Description
The following agriculture-related factors, among
others, could impact our strategy, demand for our
products and/or services and/or financial performance:
farm and industry consolidation; shifting grower
demographics; agriculture productivity and
development; changes in consumer preferences;
increasing focus on sustainability in agriculture
(including soil health, availability of arable land,
diminishing biodiversity and water management); and
technological innovation and digital business models.
3 | Changing regulations
Risk management approach
Our global footprint, integrated business and diversified
portfolio are designed to adapt to changes in the
agriculture industry and help position us to drive
long-term value creation and provide whole-acre solutions
for growers. We are focused on optimizing our Retail
business, digital innovation, growth in core markets
and continued development of scalable sustainability
programming.
See page 28 of this report for more information on our
strategic priorities.
Description
Changing laws, regulations and government policies
– including those relating to the environment and
climate change, including regulation of GHG emissions,
as well as health and safety laws or regulations, taxes
and royalties – could affect our ability to produce or sell
certain products, reduce our efficiency and competitive
advantage, increase our costs of raw materials, energy,
transportation and compliance, or require us to
make capital improvements to our operations – all of
which could impact our strategy, operations, financial
performance or reputation.
Risk management approach
Our Government & Industry Affairs Team has an active
engagement strategy with governments and regulators,
including participation in industry associations. This
allows us to keep current on regulatory developments
affecting our business or industry, allowing us to
anticipate new or changing laws and regulations and put
us in the best position for success while leveraging our
industry association allies.
We also have initiatives and commitments supporting
product stewardship, and environment and climate
action as part of our Feeding the Future Plan, to assist in
managing the impact of potential regulatory changes.
46
OverviewFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AKey enterprise risks 4 | Climate change
Description
Climate change may cause or result in, among other
things, more frequent and severe weather events,
diminishing biodiversity, impacts to growing seasons
or crop yields, and changing weather factors such as
temperature, precipitation, wind and water levels,
and affect freshwater availability. Physical risks from
climate change may also result in operational or
supply chain disruptions, depending on the nature
of the event.
Impacts from transition risks could include, but
are not limited to, policy constraints on emissions,
carbon pricing mechanisms, water restrictions, land
use restrictions or incentives, changing consumer
preferences, and market demand and supply shifts.
We are also subject to reputational risks associated with
climate change, including our stakeholders’ perception
of the agriculture industry and our role in the transition
to a lower-carbon economy. These and other factors
resulting from climate change could adversely impact
our business, financial condition, results of operations
or liquidity.
5 | Cybersecurity threats
Description
Cyberattacks, ransomware events, power outages,
terrorist attacks, natural disasters, military conflicts,
local epidemics or pandemics, other events, and
breaches or exposure to potential computer viruses of
our systems, third-party service providers’ systems, or
cloud-based platforms could lead to disruptions to our
operations, loss of data or the unintended disclosure of
confidential information and/or personally identifiable
information or property damage. Any of these could
result in business disruptions, increased defense
costs, reputational damage, personal injury or third-
party claims, impacting our operations, financial
performance or reputation.
Risk management approach
Our capital allocation framework and preventive
maintenance programs help support the long-term
reliability and efficiency of our assets. Additionally,
our geographically diversified network of facilities
and operations helps to minimize the overall impact
of physical risk from climate change on our company.
For more information refer to page 7 of this report for
our sustainability highlights and our most recent Global
Sustainability Report on our website at nutrien.com,
which is expected to be released in March 2024.
Risk management approach
Our Global Information Management and Cyber-Security
Team is supported by third-party specialists, oversees our
network security and may assist in incident response.
We promote a strong culture of cybersecurity awareness
to minimize threats and vulnerabilities, which is
supported by our cybersecurity framework, policies and
best practices.
Threat and risk assessments are completed for all new
information technology systems, and our cybersecurity
incident response processes are backstopped by external
response measures. We also conduct regular simulated
phishing and targeted cybersecurity training as well as
incident response training.
For more information refer to our most recent Global
Sustainability Report on our website at nutrien.com,
which is expected to be released in March 2024.
47
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023MD&AKey enterprise risks
MD&A
Key enterprise risks
6 | Political, economic and social instability
Description
Political, economic and social instability may affect
our business including, for instance, if any of the
jurisdictions in which we operate or do business
introduce restrictions on monetary distributions,
labor disruptions, competitive restrictions, forced
divestitures or changes to or nullification of existing
agreements, mining permits or leases, or the imposition
of tariffs, exchange controls, international trade
restrictions, embargoes, barriers or other restrictions.
Instability in political or regulatory regimes could also
affect our ability to do business and could impact our
sales and operating results, our reputation or the value
of our assets.
7 | Talent and organization culture
Description
An inability to attract and retain qualified top talent,
including for skillsets that are in high demand, could
impact our business, financial condition and
results of operations. Failure to provide the necessary
organizational structure, programs and culture to
engage and develop our employees, including providing
a respectful, inclusive and diverse workplace, could
impact our ability to achieve our growth objectives or
expected business results.
8 | Stakeholder support
Description
Our stakeholders may not support our business plans,
structure, strategy, sustainability initiatives, or
climate commitments and social responsibilities. Our
inability to meet our sustainability and climate-related
commitments and targets may also have an adverse
effect on our stakeholder support, among others. Loss
of stakeholder confidence could impair our ability
to execute our business plans, negatively impact our
ability to produce or sell our products, and may lead to
reputational damage, increased costs, financial losses,
securityholder action or negatively impact our access to
or cost of capital.
Risk management approach
Our Government & Industry Affairs Team has an active
engagement strategy with governments, regulators and
other stakeholders in the countries where we operate or
plan to operate. We assess capital investments and project
decisions against political, country and other related risk
factors and avoid or reduce our exposure to jurisdictions
with unacceptable risk levels. Dedicated teams regularly
monitor developments and global trends that may
impact us.
Risk management approach
Our Talent Attraction and Sourcing Team focuses on
building a diverse, inclusive and talented workforce.
We are committed to the career development of our
employees and building a culture grounded in our
organizational purpose and the values of safety, inclusion,
integrity and results. Our talent succession process
focuses on identifying and managing critical roles and
the proactive build-up of internal and external bench
strength. Our incentive programs are competitive,
performance-based and support our purpose-driven
culture.
Risk management approach
Our Investor Relations and Stakeholder Relations teams
monitor and regularly engage with our stakeholders
to identify their key issues and communicate the long-
term value opportunities associated with our business.
We also have an active Community Relations Team and
community investment programs. Our Strategies and
Feeding the Future Plan are structured to help support
what matters most to our stakeholders.
48
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023 MD&A
Key enterprise risks
9 | Supply chains
Description
Supply chain disruptions could result in difficulties
supplying materials to our facilities and/or impair our
ability (or the ability of the third parties upon which we
rely) to deliver products to our customers in a timely
manner. If certain key raw materials, parts and/or
supplies used in our operations are not available, our
business could be disrupted. Ongoing geopolitical
conflicts, regulatory instability and changes to tariffs,
epidemics, pandemics, or other such crises have
created and could still create supply chain challenges
and disruptions, and/or limit our ability to timely sell or
distribute our products in the future, any of which could
negatively impact our business, financial condition and
operating results.
10 | Capital redeployment
Description
Our inability to deploy capital to efficiently achieve
sustained growth, effectively execute on opportunities
or meet investor preferences – whether due to market
conditions, lack of options or otherwise, or deploying
capital in a manner inconsistent with our strategic
priorities – could impact our returns, operations,
reputation, access to or cost of capital, or potential
impairment charges related to the goodwill or
intangible assets.
11 | Safety, health and environment
Description
Our operations are subject to safety, health
and environmental risks inherent in mining,
manufacturing, transportation, storage and
distribution of our products. These factors could
result in injuries or fatalities, or impact air quality,
biodiversity, water resources or related ecosystems near
our operations, impacting our operations, financial
performance or reputation.
Risk management approach
Our integrated business provides us the flexibility to
optimize operations, transportation and logistics, or
increase supply chain efficiencies to adapt to potential
disruption. We regularly review our suppliers to ensure
we can maintain critical feedstocks and can leverage
our diverse retail distribution network and expansive
fertilizer terminal and transportation network to
effectively manage product logistical challenges.
Risk management approach
We continue to focus on creating long-term
value through a balanced and disciplined approach to
capital allocation. We prioritize maintaining safe and
reliable operations, a healthy balance sheet,
investing in our business and providing strong
returns to shareholders.
See page 35 of this report for more information
on our capital allocation priorities and key actions during
the year.
Risk management approach
Our safety strategy and governance processes ensure
we follow all regulatory, industry and internal standards
of safety, health and environmental responsibility that
involve independent audits and assessments. We have
structured incident prevention and response systems
in place and conduct regular security vulnerability
assessments. We have crisis communication protocols
and emergency response programs across our
business and maintain environmental monitoring and
control systems, including third-party reviews of key
containment structures.
For more information refer to our most recent Global
Sustainability Report on our website at nutrien.com,
which is expected to be released in March 2024.
49
OverviewMD&AFive-year highlightsFinancial statements and notesNutrien Annual Report 2023 Five-year highlights
Results
50
06Nutrien Annual Report 2023OverviewFinancial statements and notesMD&AOur companyOperating environmentStrategyGovernanceKey enterprise risksResults Overview
Overview
MD&A
Five-year highlights
Financial statements and notes
Our company
Operating environment
Strategy
Governance
Key enterprise risks
Results
California, US
The US is the world’s second
largest producer of lettuce.
Nutrien’s network of ~1,200
selling locations in the US
serves growers needs including
specialty crops like lettuce and
other fruits and vegetables.
•
•
Adjusted EBITDA is the primary
profit measure used to evaluate
the segments’ performance
as it excludes the impact of
non-cash impairments and
impairment reversals and
other costs that are centrally
managed by our corporate
function. Refer to Note 3 to
the consolidated financial
statements for details.
Net sales (sales less freight,
transportation and distribution
expenses) is the primary
revenue measure used in
planning and forecasting
in the Potash, Nitrogen and
Phosphate operating segments.
Nutrien Annual Report 2023
51
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
2023 Nutrien Ag Solutions (“Retail”)
financial performance
Our Retail business generated adjusted EBITDA of $1.5 billion, lower than the record levels of the prior year primarily due to
lower gross margin for both crop nutrients and crop protection products. Margins were pressured as crop input prices softened
and higher cost inventory moved through the channel. Crop nutrients sales volumes increased by over 1 million tonnes as
growers worked to replenish nutrients in the soil. As the year progressed, crop input margins in North America normalized and
customers returned to more normal buying behaviors.
In Brazil, we saw continued margin compression due to decreased prices for certain crop protection products and the selling
through of high cost inventory. Included with expenses for the full year of 2023, we recognized a $465 million non-cash
impairment primarily to goodwill relating to our Retail – South America assets, mainly due to the impact of crop input price
volatility, more moderate long-term growth assumptions and higher interest rates. We believe the long-term prospects for
agriculture in Brazil are strong and it remains an important crop input market for Nutrien. In the near-term, we are focused on
integration of our recent acquisitions and optimization of our cost structure in this region.
(millions of US dollars, except
as otherwise noted)
Sales
Crop nutrients
Crop protection products
Seed
Merchandise
Nutrien Financial
Services and other
Nutrien Financial elimination 1
Cost of goods sold
Gross margin
Expenses 2,3
Earnings before finance
costs and taxes (“EBIT”)
Depreciation and amortization
EBITDA
Adjustments 3
Adjusted EBITDA
Dollars
Gross margin
Gross margin (%)
2023
2022
%
Change
2023
2022
%
Change
2023
2022
1,378
1,553
427
172
322
710
(132)
1,766
1,936
428
174
267
749
(141)
4,430
5,179
(22)
(20)
–
(1)
21
(5)
(6)
(14)
16
23
19
17
100
77
100
23
18
27
20
17
100
78
100
24
8,379
6,750
2,295
1,001
322
927
(132)
19,542
15,112
4,430
4,215
215
759
974
485
10,060
7,067
2,112
1,019
267
966
(141)
21,350
16,171
5,179
3,621
1,558
752
2,310
(17)
1,459
2,293
(17)
(4)
9
(2)
21
(4)
(6)
(8)
(7)
(14)
16
(86)
1
(58)
n/m
(36)
1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches.
2
3
Includes selling expenses of $3,375 million (2022 – $3,392 million).
Includes non-cash impairment of assets of $465 million (2022 – nil). See Notes 3 and 14 to the consolidated financial statements.
52 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
The most significant contributors to the changes in our Retail financial performance were as follows:
2023 vs 2022
Crop nutrients
Sales and gross margin decreased in 2023 due to lower selling prices across all regions compared to the strong
comparable period in 2022. Sales volumes increased in 2023 as growers returned to more normalized application rates
to replenish nutrients in the soil. Sales and gross margin of our proprietary nutritional and biostimulant product lines
increased compared to 2022 levels as we continued to expand our differentiated product offering and manufacturing
capacity.
Crop protection
products
Sales and gross margin were lower primarily due to decreased selling prices compared to the historically strong
comparable period in 2022. This was partially offset by higher fourth quarter sales in North America as growers returned
to more normalized buying behaviors. Gross margin in 2023 was also impacted by the selling through of high-cost
inventory.
Seed
Sales increased in 2023 primarily due to increased corn sales in the US, while gross margin saw little change compared
to 2022.
Nutrien Financial
Sales increased in 2023 due to higher utilization of our financing offerings in the US and Australia compared to 2022.
Services and other
Sales and gross margin decreased in 2023 mainly due to lower livestock selling prices and volumes in Australia.
Expenses
In 2023, we recognized a $465 million non-cash impairment primarily to goodwill related to our Retail – South America
assets, mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher
interest rates. Selling expenses as a percentage of sales were higher in 2023 primarily due to lower selling prices
compared to the strong comparable period in 2022.
Adjusted EBITDA
Adjusted EBITDA decreased in 2023 primarily due to lower gross margins for crop nutrients and crop
protection products.
Selected Retail measures
Proprietary products gross margin (millions of US dollars)
Crop nutrients
Crop protection products
Seed
Merchandise
All products
Proprietary products margin as a percentage of product line margin (%)
Crop nutrients
Crop protection products
Seed
Merchandise
All products
2023
2022
391
461
168
11
370
675
166
12
1,031
1,223
28
30
39
6
23
21
35
39
7
24
Nutrien Annual Report 2023
53
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Crop nutrients sales volumes (tonnes – thousands)
North America
International
Total
Crop nutrients selling price per tonne
North America
International
Total
Crop nutrients gross margin per tonne
North America
International
Total
Financial performance measures
Retail adjusted EBITDA margin (%) 1
Retail adjusted EBITDA per US selling location (thousands of US dollars) 1,2
Retail adjusted average working capital to sales (%) 3
Retail adjusted average working capital to sales excluding Nutrien Financial (%) 3
Nutrien Financial adjusted net interest margin (%) 3
Retail cash operating coverage ratio (%) 3
1 These are supplementary financial measures. See the “Other Financial Measures” section.
2 Excluding acquisitions.
3 These are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section.
Nutrien Financial
2023
2022
8,985
3,647
12,632
8,106
3,407
11,513
697
581
663
127
65
109
2023
7
1,394
19
1
5.2
68
916
774
874
182
86
153
2022
11
1,923
17
2
6.8
55
We offer flexible financing solutions to our customers in support of Nutrien’s agricultural product and service sales. Qualifying
Retail customers in the US and Australia are offered extended payment terms, typically up to one year, to facilitate the
alignment of grower crop cycles with cash flows. Nutrien Financial revenues are primarily earned through interest and service
fees that are charged to our Retail branches.
We hold a significant portion of receivables from customers that have historically experienced a low-default rate. We manage
our credit portfolio based on a combination of review of customer credit metrics, past experience with the customer and
exposure to any single customer. Nutrien Financial, which is our wholly owned finance captive, monitors and services the
portfolio of our high-quality receivables from customers that have the lowest risk of default among Retail’s receivables from
customers. We monitor the results of this portfolio of receivables separately because we calculate the cost of capital attributable
to the high-quality receivables from customers differently from our other receivables. Specifically, we assume a debt-to-equity
ratio of 7:1 in funding Nutrien Financial receivables, based on the underlying credit quality of the assets.
Nutrien Financial relies on corporate capital for funding. For 2023, we estimated the deemed interest expense using an average
borrowing rate of 4.1 percent (2022 - 1.4 percent) applied to the notional debt required to fund the portfolio of receivables from
customers monitored and serviced by Nutrien Financial. The balance of our Retail receivables (outside of Nutrien Financial) is
subject to marginally higher credit risk.
As at December 31
(millions of US dollars)
Current
<31 Days
past due
31–90 Days
past due
>90 Days
past due
Gross
receivables
Allowance 1
2023 Net
receivables
2022 Net
receivables
North America
International
Nutrien Financial
receivables 2
1,736
560
2,296
327
56
383
89
22
94
59
2,246
697
(40)
(10)
2,206
687
2,007
662
111
153
2,943
(50)
2,893
2,669
1 Bad debt expense on the above receivables for the twelve months ended December 31, 2023 was $35 million (2022 – $10 million) in the Retail segment.
2 Gross receivables include $2,578 million (2022 – $2,260 million) of very low risk of default and $365 million (2022 – $445 million) of low risk of default.
54 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
2023 Potash financial performance
Our Potash business delivered adjusted EBITDA of $2.4 billion as lower net realized selling prices more than offset higher North
American sales volumes and lower provincial mining taxes and royalties. Potash sales volumes in North America increased due
to lower channel inventory and increased grower demand supported by an extended fall application season and improved
affordability. Offshore sales volumes were lower compared to last year’s record levels primarily due to logistical challenges at
Canpotex’s West Coast port facilities and reduced shipments to customers in India and Southeast Asia.
Dollars
Tonnes (thousands)
Average per tonne
2023
2022
%
Change
2023
2022
%
Change
2023
2022
%
Change
(millions of US dollars, except
as otherwise noted)
Manufactured product
Net sales
North America
Offshore
Cost of goods sold
Gross margin – total
Expenses 1
EBIT
Depreciation and amortization
1,683
2,076
3,759
1,396
2,363
422
1,941
463
2,485
5,414
7,899
1,400
6,499
1,173
5,326
443
EBITDA/Adjusted EBITDA
2,404
5,769
4,843
8,373
3,729
8,808
13,216
12,537
30
(5)
5
(32)
(62)
(52)
–
(64)
(64) Depreciation and amortization
(64)
5
Gross margin excluding
depreciation and amortization
–manufactured 2
(58) Potash controllable cash cost
of product manufactured 2
348
248
284
105
179
35
667
615
630
112
518
35
(48)
(60)
(55)
(6)
(65)
–
214
553
(61)
58
58
–
Includes provincial mining taxes of $398 million (2022 – $1,149 million).
1
2 These are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section.
The most significant contributors to the changes in our Potash financial performance were as follows:
2023 vs 2022
Sales volumes
Overall sales volumes were higher in 2023. North America sales volumes increased in 2023 due to lower channel
inventory and increased grower demand supported by an extended fall application season and improved affordability.
Offshore sales volumes were lower in 2023 compared to record levels in 2022 primarily due to logistical challenges at
Canpotex’s West Coast port facilities and reduced shipments to customers in India and Southeast Asia.
Net realized selling
price
Average net realized selling prices decreased in 2023 compared to the historically strong prices in 2022 due to a decline
in benchmark prices and higher costs related to logistical challenges at Canpotex’s West Coast port facilities.
Cost of goods sold
per tonne
Costs decreased in 2023 mainly due to lower royalties resulting from decreased net realized selling prices.
Potash controllable cash cost of product manufactured per tonne was consistent with 2022.
Expenses
Expenses decreased in 2023 primarily due to lower provincial mining taxes from lower average potash selling prices,
which are the basis for certain taxes. We are subject to Saskatchewan provincial resource taxes, including the potash
production tax and the resource surcharge.
Adjusted EBITDA
Adjusted EBITDA decreased in 2023 due to lower net realized selling prices, which more than offset higher North
American sales volumes and lower provincial mining taxes and royalties.
Nutrien Annual Report 2023
55
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Canpotex sales by market
(percentage of sales volumes, except as otherwise noted)
2023
2022
Change
Latin America
Other Asian markets 1
Other markets
China
India
1 All Asian markets except China and India.
47
28
11
9
5
34
34
10
14
8
13
(6)
1
(5)
(3)
Potash production
(million tonnes KCI)
Rocanville Potash
Allan Potash
Lanigan Potash
Vanscoy Potash
Cory Potash
Patience Lake Potash
Total
Shutdown weeks 3
Nameplate
capacity 1
6.5
4.0
3.8
3.0
3.0
0.3
Operational capability 2
Production
2024
2023
2023
2022
5.1
2.4
3.0
1.1
2.1
0.3
5.2
3.0
3.1
1.4
2.2
0.3
4.97
2.39
2.89
1.05
1.50
0.20
4.89
2.50
2.46
1.01
1.89
0.26
20.6
14.0
15.2
13.00
13.01
5
18
1 Represents estimates of capacity as at December 31, 2023. Estimates based on capacity as per design specifications or Canpotex entitlements once determined.
In the case of Patience Lake, estimate reflects current operational capability. Estimates for all other facilities do not necessarily represent operational capability.
2 Estimated annual achievable production based on expected staffing and operational readiness (estimated at the beginning of the year, and may vary during the
year, and year-to-year, including between our facilities). Estimate does not include inventory-related shutdowns and unplanned downtime.
3 Represents weeks of full production shutdown, excluding the impact of any periods of reduced operating rates and planned routine annual maintenance
shutdowns and announced workforce reductions.
56 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
2023 Nitrogen financial performance
We generated adjusted EBITDA of $1.9 billion for our Nitrogen business, below the record levels of the prior year due to lower net
realized selling prices for all major nitrogen products, which more than offset lower natural gas costs and higher sales volumes.
Our increased sales volumes were primarily due to higher UAN production and sales, partially offset by lower ammonia
availability mainly due to production outages at our plants in Trinidad. We recognized a $76 million non-cash impairment of our
Trinidad property, plant and equipment due to a new natural gas contract and the resulting outlook for higher expected natural
gas costs and constrained near-term availability. We expect improved natural gas availability in Trinidad as the development of
additional gas fields is anticipated to add new supply starting in 2026.
(millions of US dollars, except
as otherwise noted)
Manufactured product
Net sales
Ammonia
Urea and ESN® 1
Solutions, nitrates and sulfates
Cost of goods sold 1
Gross margin – manufactured
Gross margin – other 1, 2
Gross margin – total
Expenses (income) 3,4
EBIT
Depreciation and amortization
EBITDA/Adjusted EBITDA
Adjustments 4
Adjusted EBITDA
Dollars
Tonnes (thousands)
Average per tonne
2023
2022
%
Change
2023
2022
%
Change
2023
2022
%
Change
1,144
1,499
1,187
3,830
2,435
1,395
(16)
1,379
97
1,282
572
1,854
76
1,930
2,641
2,134
1,829
6,604
3,370
3,234
47
3,281
(92)
3,373
558
3,931
–
3,931
(57)
(30)
(35)
(42)
(28)
(57)
n/m
(58)
n/m
2,436
3,125
4,862
2,715
3,014
4,551
10,423
10,280
(10)
4
7
1
Depreciation and amortization
Gross margin excluding
depreciation and amortization
– manufactured 5
469
480
244
367
233
134
55
973
708
402
642
327
315
54
(52)
(32)
(39)
(43)
(29)
(57)
2
189
369
(49)
(62) Ammonia controllable cash
3
cost of product manufactured 5
60
59
2
(53)
n/m
(51)
1 Certain immaterial 2022 figures have been reclassified.
2
Includes other nitrogen and purchased products and comprises net sales of $377 million (2022 – $929 million) less cost of goods sold of $393 million
(2022 –$882 million).
Includes earnings from equity-accounted investees of $90 million (2022 – $233 million).
Includes non-cash impairment of assets of $76 million (2022 – nil). See Notes 3 and 13 to the consolidated financial statements.
3
4
5 These are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section.
Nutrien Annual Report 2023
57
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
The most significant contributors to the changes in our Nitrogen financial performance were as follows:
2023 vs 2022
Sales volumes
Sales volumes were higher in 2023 primarily due to higher UAN production and sales, partially offset by lower ammonia
availability mainly due to production outages at our plants in Trinidad.
Net realized selling
price
Net realized selling price was lower in 2023 for all major nitrogen products primarily due to weaker benchmark prices
resulting from lower energy prices in key nitrogen producing regions.
Cost of goods sold
per tonne
Costs decreased in 2023 primarily due to lower natural gas costs. Raw materials and other input costs were also lower in
2023 compared to 2022 due to lower benchmark prices.
Ammonia controllable cash cost of product manufactured per tonne increased mainly due to the impact of lower
ammonia production.
Expenses (income)
We recognized a $76 million non-cash impairment of our Trinidad property, plant and equipment due to a new natural
gas contract and the resulting outlook for higher expected natural gas costs and constrained near-term availability. We
expect improved natural gas availability in Trinidad as the development of additional gas fields is anticipated to add
new supply starting in 2026. There was no comparable expense in 2022.
Other expenses (income) also increased in 2023 mainly due to lower earnings from our equity-accounted investment in
Profertil. Profertil’s earnings were lower mainly due to lower urea net selling prices from lower benchmark prices.
Adjusted EBITDA
Adjusted EBITDA was lower in 2023 primarily due to lower net realized selling prices for all major nitrogen products,
which more than offset lower natural gas costs and higher sales volumes.
Natural gas prices in cost of production
(US dollars per MMBtu, except as otherwise noted)
Overall natural gas cost excluding realized derivative impact
Realized derivative impact
Overall natural gas cost
Average NYMEX
Average AECO
2023 vs 2022
2023
3.51
(0.02)
3.49
2.74
2.17
2022
7.82
(0.05)
7.77
6.64
4.28
%
Change
(55)
(60)
(55)
(59)
(49)
Overall natural gas
cost
Natural gas prices in our cost of production decreased in 2023 as a result of lower North American natural
gas index prices and decreased natural gas costs in Trinidad, where our natural gas prices are linked to ammonia
benchmark prices.
Selected Nitrogen measures
Sales volumes (tonnes – thousands)
Fertilizer 1
Industrial and feed
Net sales (millions of US dollars)
Fertilizer 1
Industrial and feed
Net selling price per tonne
Fertilizer 1
Industrial and feed
1 Certain immaterial 2022 figures have been reclassified.
58 Nutrien Annual Report 2023
2023
2022
6,067
4,356
2,450
1,380
404
317
5,628
4,652
3,726
2,878
662
619
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Nitrogen production
(million tonnes product, except as otherwise noted)
Trinidad Nitrogen 4
Redwater Nitrogen
Augusta Nitrogen
Lima Nitrogen
Geismar Nitrogen
Carseland Nitrogen
Fort Saskatchewan Nitrogen
Borger Nitrogen
Joffre Nitrogen
Total
Adjusted total 5
Ammonia operating rate 5 (%)
Ammonia 1
Urea 2
Production
Production
Annual
capacity 3
2023
2022
Annual
capacity 3
2023
2022
2.2
0.9
0.8
0.7
0.5
0.5
0.5
0.5
0.5
7.1
1.11
0.89
0.74
0.68
0.43
0.53
0.39
0.24
0.34
5.35
3.90
88
1.46
0.78
0.59
0.71
0.58
0.39
0.47
0.41
0.37
5.76
3.93
90
0.7
0.7
0.7
0.5
0.4
0.7
0.4
0.6
–
4.7
0.32
0.76
0.56
0.51
0.30
0.75
0.35
0.31
–
3.86
0.42
0.55
0.40
0.50
0.37
0.50
0.44
0.49
–
3.67
1 All figures are shown on a gross production basis.
2 Reflects capacity and production of urea liquor prior to final product upgrade. Urea liquor is used in the production of solid urea, UAN and DEF.
3 Annual capacity estimates include allowances for normal operating plant conditions.
4
5 Excludes Trinidad and Joffre.
In 2022 and 2023, Trinidad production was restricted due to natural gas curtailments, which are expected to extend into 2024.
Nutrien Annual Report 2023
59
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
2023 Phosphate financial
performance
Our Phosphate business earned adjusted EBITDA of $470 million, lower compared to the prior year mainly due to lower net
realized selling prices for fertilizer products, partially offset by lower ammonia and sulfur input costs. Our sales volumes
increased primarily due to higher phosphate fertilizer demand, partially offset by lower first-half production impacting our
industrial and feed sales. Our production was higher for the full year largely due to improved reliability at our Aurora plant.
Included in the expenses for the full year of 2023, we recognized a $233 million non-cash impairment of our White Springs
property, plant and equipment, while we had non-cash impairment reversals of our Phosphate assets of $780 million for the full
year of 2022.
(millions of US dollars, except
as otherwise noted)
Manufactured product
Net sales
Fertilizer
Industrial and feed
Cost of goods sold
Gross margin – manufactured
Gross margin – other 1
Gross margin – total
Expenses (income)
EBIT
Depreciation and amortization
EBITDA
Adjustments 3
Adjusted EBITDA
Dollars
Tonnes (thousands)
Average per tonne
2023
2022
%
Change
2023
2022
%
Change
2023
2022
%
Change
1,912
639
2,551
1,696
682
2,378
13
(6)
7
Depreciation and amortization
Gross margin excluding
depreciation and amortization
– manufactured 2
568
1,010
806
1,035
678
583
95
115
872
657
215
79
(30)
(2)
(22)
(11)
(56)
46
210
294
(29)
1,085
645
1,730
1,487
243
(10)
233
290
(57)
294
237
233
470
1,367
706
2,073
1,562
511
(18)
493
(693)
1,186
188
1,374
(780)
594
(21)
(9)
(17)
(5)
(52)
(44)
(53)
n/m
n/m
56
(83)
n/m
(21)
1
Includes other phosphate and purchased products and comprises net sales of $263 million (2022 – $304 million) less cost of goods sold of $273 million (2022 –
$322 million).
2 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section.
3
Includes non-cash impairment of assets of $233 million (2022 – reversal of non-cash impairment of assets of $780 million). See Notes 3 and 13 to the consolidated
financial statements.
The most significant contributors to the changes in our Phosphate financial performance were as follows:
2023 vs 2022
Sales volumes
Sales volumes increased in 2023 mostly due to higher phosphate fertilizer demand, partially offset by lower first-half
year production impacting our industrial and feed sales. Production increased in 2023 largely due to improved reliability
at our Aurora plant.
Net realized selling
price
Net realized selling prices decreased in 2023 primarily due to lower fertilizer net realized selling prices and lower
industrial and feed net realized selling prices, which reflect the typical lag in price realizations relative to spot fertilizer
prices.
Cost of goods sold
per tonne
Costs decreased in 2023 mainly due to lower ammonia and sulfur input costs, partially offset by higher depreciation and
amortization resulting from the reversal of non-cash impairment of assets in 2022 (see details below).
Expenses (income)
In 2023, we recognized a $233 million non-cash impairment of our White Springs property, plant and equipment, while
we had non-cash impairment reversals of our Phosphate assets of $780 million in 2022. The impairments and
impairment reversals were due to changes in our forecasted global prices driven by the prevailing macroeconomic
environment.
Adjusted EBITDA
Adjusted EBITDA decreased in 2023 mainly due to lower net realized selling prices for fertilizer products, partially offset
by lower ammonia and sulfur input costs.
60 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Phosphate production
Phosphate rock
Phosphoric acid (P2O5)
Liquid products
Solid fertilizer products
Production
Production
Production
Production
(million tonnes, except as
otherwise noted)
Annual
capacity
Aurora Phosphate
White Springs Phosphate
Total
P2O5 operating rate (%)
5.4
2.0
7.4
2023
2022
4.24
1.27
3.43
1.42
5.51
4.85
Annual
capacity
1.2
0.5
1.7
Annual
capacity
2023
2022
Annual
capacity
2023
2022
1.00
0.40
0.93
0.42
2.7 1
0.7 2
2.13
0.33
1.87
0.39
1.40
1.35
3.4
2.46
2.26
83
79
2023
2022
0.77
0.33
0.68
0.30
1.10
0.98
0.8
0.8
1.6
1 A substantial portion is consumed internally in the production of downstream products. The balance is exported to phosphate fertilizer producers or sold
domestically to dealers who custom-mix liquid fertilizer. Capacity is composed of 2.0 million tonnes MGA and 0.7 million tonnes SPA.
2 Represents annual SPA capacity. A substantial portion is consumed internally in the production of downstream products. The balance is exported to phosphate
fertilizer producers or sold domestically to dealers who custom-mix liquid fertilizer.
In addition to the production above, annual capacity (in millions of tonnes) for phosphate feed and purified acid was 0.7 and 0.3,
respectively. Production in 2023 was 0.30 and 0.16, respectively, and 2022 production was 0.33 and 0.18, respectively.
Nutrien Annual Report 2023
61
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
2023 Corporate and Others
financial performance
“Corporate and Others” is a non-operating segment comprising corporate and administrative functions that provide support
and governance to our operating segments.
(millions of US dollars, except as otherwise noted)
Selling expense (recovery)
General and administrative expenses
Share-based compensation (recovery) expense
Other expenses
EBIT
Depreciation and amortization
EBITDA
Adjustments 1
Adjusted EBITDA
1 See Note 3 to the consolidated financial statements.
2023
–
364
(14)
348
(698)
81
(617)
350
(267)
2022
(1)
326
63
227
(615)
71
(544)
146
(398)
% Change
n/m
12
n/m
53
13
14
13
140
(33)
The most significant contributors to the changes in our Corporate and Others financial performance were as follows:
2023 vs 2022
Increase in expenses was primarily due to higher staffing costs and higher depreciation and amortization expense.
General and
administrative
expenses
Share-based
compensation
(recovery) expense
Recovery in 2023 was due to decrease in the fair value of share-based awards outstanding relative to 2022. The fair
value takes into consideration several factors such as our share price movement, our performance relative to our peer
group and return on our invested capital.
Other expenses
Increase in other expenses was mainly due to a $152 million higher expense related to asset retirement obligations
and environmental costs resulting from changes in estimates related to our non-operating sites and a $92 million loss
on Blue Chip Swaps incurred through trade transactions to remit cash from Argentina and higher foreign exchange
losses in 2023. These expenses were partially offset by an $80 million gain in 2023 from amendments due to design
plan changes to our other post-retirement benefit plans. Refer to Note 6 to the consolidated financial statements for
details on the loss on Blue Chip Swaps.
Eliminations
Eliminations are not part of the Corporate and Others segment. Eliminations of sales between operating segments in 2023 were
$1,650 million (2022 – $2,333 million) with a gross margin recovery of $69 million (2022 – $28 million elimination). These
variances are due to lower intersegment selling prices and margins in 2023 as crop input prices decreased compared to the
historical strong prices of 2022.
62 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Finance costs, income taxes and
other comprehensive income (loss)
(millions of US dollars, except as otherwise noted)
Finance costs
Income tax expense
Other comprehensive income (loss)
2023
793
670
81
2022
563
2,559
(177)
% Change
41
(74)
n/m
The most significant contributors to the changes in our finance costs, income tax expense and other comprehensive income
(loss) were as follows:
2023 vs 2022
Finance costs
Finance costs increased primarily due to higher interest rates and higher average long-term debt
balances.
Income tax expense
Weighted Average Debt Balances and Rates
(millions of US dollars, except as otherwise noted)
Short-term balance 1
Short-term rate (%) 1
Long-term balance (excluding lease obligations)
Long-term rate (excluding lease obligations) (%)
Lease obligations balance
Lease obligations rate (%)
2023
3,988
6.1
9,112
5.0
1,200
4.0
2022
3,975
3.0
7,839
4.6
1,209
2.9
1 North American weighted average short-term debt balances were $3,306 million (2022 – $3,529 million) and rates were
5.6 percent (2022 – 2.6 percent).
Income tax expense was lower in 2023 primarily as a result of lower earnings compared to 2022. The
2023 expense and effective tax rate reflect a $134 million income tax recovery due to changes to our
tax declarations in Switzerland (“Swiss Tax Reform adjustment”, refer to Note 8 to the consolidated
financial statements for additional information) and a $101 million income tax expense due to a
change in recognition of deferred tax assets in our Retail – South America region. The 2023 effective tax
rate also includes the impact of our losses in Retail – South America, wherein we did not recognize a
corresponding deferred tax asset as it did not meet the accounting criteria for asset recognition.
Effective tax rates and discrete items
(millions of US dollars, except as otherwise noted)
Actual effective tax rate on earnings (%)
Actual effective tax rate including discrete items (%)
Discrete tax adjustments that impacted the rate
2023
33
34
28
2022
25
25
30
Other comprehensive
income (loss)
Other comprehensive income (loss) was primarily driven by changes in the currency translation of our
Retail foreign operations primarily due to improvements of Canadian and Australian currencies
relative to the US dollar in 2023. In 2023, we also recognized an actuarial gain on our defined benefit
plans compared to a loss on the comparative period driven by changes in our financial and
demographic assumptions and performance of our plan assets.
Nutrien Annual Report 2023
63
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Performance against 2023 targets
Executing on our financial and operating targets
In 2019, we set ambitious targets for 2023 focused on growing and improving the quality of our Retail earnings,
increasing our potash and nitrogen volumes, and controlling our operating costs. These targets were designed to
motivate our teams and align our strategies with our vision and values. We made progress towards achieving these
targets during this period, however geopolitical events, supply chain disruptions and inflationary pressures impacted
our results in 2023. As we enter 2024, we remain focused on our core business, improving the quality of our earnings,
investing in high-value strategic initiatives and fortifying our business for the future.
2023 Target
2023 Actuals
2022 Actuals
Nutrien Ag Solutions (“Retail”)
Total Retail adjusted EBITDA margin (%) 1
US Retail adjusted EBITDA margin (%) 1, 2
Retail adjusted average working capital to sales (%) 3
Retail cash operating coverage ratio (%) 3
Retail adjusted EBITDA per US selling location (thousands of US dollars) 1,4
Retail proprietary products as a % of total Retail margin
Potash and Nitrogen
Potash sales volumes (million tonnes)
Potash controllable cash cost of product manufactured per tonne
(US dollars) 2, 3
Nitrogen sales volumes (million tonnes) 5
Ammonia operating rate (%) 6
Ammonia controllable cash cost of product manufactured per tonne
(US dollars) 3
IFRS comparable information
Potash cost of goods sold (million US dollars) 2
Nitrogen manufactured cost of goods sold (million US dollars) 2
>10.5
17
60
>1,100
29
14.0-16.0
10.8-11.4
96
42
7.5
9.3
19
68
1,394
23
13.2
58
10.4
88
60
1,396
2,435
10.7
12.2
17
55
1,923
24
12.5
58
10.3
90
59
1,400
3,370
1 This is a supplementary financial measure. See the “Other Financial Measures” section.
2 No target was provided.
3 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section.
4 Calculation is based on number of selling locations only, excluding acquisitions.
5
6 Operating rate represents production volumes divided by production capacity (excluding Joffre and Trinidad facilities).
Includes manufactured product only. 2023 target includes ESN® products that prior to 2022 were included in the other category.
64 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
2024 Guidance
We have revised our guidance practice in 2024 to provide forward looking estimates on those metrics that we believe are
of value to our shareholders and are less impacted by fertilizer commodity prices. We continue to provide guidance for
Retail adjusted EBITDA, fertilizer sales volumes and other key financial modeling metrics as well as fertilizer pricing
sensitivities.
(billions of US dollars, except as otherwise noted)
Retail adjusted EBITDA
Potash sales volumes (million tonnes) 2
Nitrogen sales volumes (million tonnes) 2
Phosphate sales volumes (million tonnes) 2
Depreciation and amortization
Finance costs
Effective tax rate on adjusted earnings (%)
Capital expenditures 3
2024 Guidance Ranges1 as of
February 21, 2024
Low
1.65
13.0
10.6
2.6
2.2
0.75
24.0
2.2
High
1.85
13.8
11.2
2.8
2.3
0.85
26.0
2.3
2023 Actual
1.5
13.2
10.4
2.6
2.2
0.8
28.0
2.7
1 See the “Forward-Looking Statements” section.
2 Manufactured product only.
3 Comprised of sustaining capital expenditures, investing capital expenditures and mine development and pre-stripping capital expenditures which are
supplementary financial measures. See the “Other Financial Measures” section.
2024 Sensitivities
2024 Annual Sensitivities 1
Effect on
(millions of US dollars, except EPS amounts)
Adjusted EBITDA
Adjusted EPS4
$25/tonne change in net realized potash selling prices
$25/tonne change in net realized ammonia selling prices 2
$25/tonne change in net realized urea and ESN® selling prices
$25/tonne change in net realized solutions, nitrates and sulfates selling prices
$1/MMBtu change in NYMEX natural gas price 3
± 270
± 40
± 80
± 130
± 190
± 0.40
± 0.05
± 0.10
± 0.20
± 0.30
Includes related impact on natural gas costs in Trinidad, which is linked to benchmark ammonia pricing.
1 See the “Forward-Looking Statements” section.
2
3 Nitrogen related impact.
4 Assumes 496 million shares outstanding for all earnings per share (“EPS”) sensitivities.
Nutrien Annual Report 2023
65
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Annual financial information
(millions of US dollars, except as otherwise noted)
Sales
Net earnings
Basic net earnings per share (US dollars)
Diluted net earnings per share (US dollars)
Total assets
Total non-current financial liabilities
Dividends declared per share (US dollars)
2023
29,056
1,282
2.53
2.53
52,749
9,912
2.12
2022
37,884
7,687
14.22
14.18
54,586
8,939
1.92
2021
27,712
3,179
5.53
5.52
49,954
8,455
1.84
2023 vs 2022
2022 vs 2021
Sales
Sales decreased primarily due to lower net realized
selling prices compared to the historically strong prices
in 2022, partially offset by higher sales volumes for crop
nutrients, potash and nitrogen.
Net earnings
and earnings per
share
Assets and
non-current
financial
liabilities
Net earnings and earnings per share decreased primarily
due to lower net realized selling prices across our
nutrient segments due to a decline in benchmark prices.
In 2023, we recorded $774 million non-cash impairments
of our Retail – South America assets, Phosphate White
Springs and Nitrogen Trinidad property, plant and
equipment compared to non-cash impairment reversals
of $780 million of Phosphate assets recorded in 2022.
Total assets decreased approximately 3 percent from
2022 primarily due to lower receivables and inventories
as we collected and sold through our higher-valued
receivables and inventories from historically strong
prices in 2022 and $774 million of non-cash impairments
(as described above). This is partially offset by higher
capital spending on property, plant and equipment.
Non-current financial liabilities increased due to the
higher long-term debt from the issuance of new
senior notes.
Sales increased primarily due to higher net realized
selling prices from global supply uncertainties across our
nutrient segments, partially offset by lower sales
volumes. Strong Retail performance due to higher selling
prices and increased sales of proprietary products, which
more than offset a reduction in crop nutrients sales
volumes from a delayed North American planting season
and earlier engagement in the prior year in a rising
price environment.
Net earnings and earnings per share increased due to
historically strong net realized selling prices across our
nutrient segments and strong Retail performance
supported by the strength of agriculture fundamentals.
In 2022, we recorded non-cash impairment reversals of
our Phosphate Aurora and White Springs property, plant
and equipment.
Total assets increased approximately 10 percent from
2021. Our working capital assets increased from higher-
valued receivables and inventories along with acquisition
impacts. Property, plant and equipment increased
primarily due to non-cash impairment reversals in the
Phosphate segment.
Non-current financial liabilities increased due to the
higher long-term debt from the issuance of new
senior notes.
Dividends
declared per
share
Dividends declared per share increased as we declared a
quarterly dividend per share of $0.53 in 2023 compared
to $0.48 in 2022.
Dividends declared per share increased as we declared a
quarterly dividend per share of $0.48 in 2022 compared
to $0.46 in 2021.
66 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Financial condition review
Balance sheet analysis
As at
(millions of US dollars, except as otherwise noted)
December 31, 2023
December 31, 2022
$ Change
% Change
Assets
Receivables
Inventories
Property, plant and equipment
Goodwill
Liabilities and equity
Short-term debt
Payables and accrued charges
Long-term debt
Share capital
Retained earnings
5,398
6,336
22,461
12,114
1,815
9,467
8,913
13,838
11,531
6,194
7,632
21,767
12,368
2,142
11,291
8,040
14,172
11,928
(796)
(1,296)
694
(254)
(327)
(1,824)
873
(334)
(397)
(13)
(17)
3
(2)
(15)
(16)
11
(2)
(3)
Assets
Liabilities
Receivables decreased due to lower selling prices across all of
our operating segments compared to a historically strong
period in 2022. These were partially offset by a strategic
extension of credit terms to our Retail customers resulting in
increased usage of Nutrien Financial programs.
Inventories decreased across all operating segments as we
sold through our higher-cost inventories on hand as related
benchmark prices decreased and from lower input costs
including royalties, natural gas and sulfur. In 2022, we also
strategically procured certain products at larger quantities in
anticipation of supply chain challenges.
Property, plant and equipment increased from capital
expenditures related to our Potash and Nitrogen capital
projects and turnarounds to maintain safe and reliable
operations. This is partially offset by non-cash impairments on
our Phosphate White Springs and Nitrogen Trinidad property,
plant and equipment of $309 million.
Goodwill decreased due to the recognition of a non-cash
impairment of $422 million related to our Retail - South
America assets in 2023.
Short-term debt decreased due to lower drawdowns on our
credit facilities based on our working capital requirements.
Payables and accrued charges decreased due to lower accrual
of income tax in 2023 compared to 2022, when we had
historically strong earnings. Certain costs including products
for resale, natural gas and sulfur input costs, and expenses
tied to selling prices, such as provincial mining taxes also
decreased. Payables also decreased from lower customer
prepayments as a result of the lower commodity price
environment and lower accruals for payroll expenses.
Long-term debt increased due to the issuance of $1.5 billion of
senior notes in 2023, which exceeded the repayment of $500
million in senior notes upon maturity in the same period.
Shareholders’ equity
Share capital decreased primarily from shares repurchased
under our normal course issuer bid program.
Retained earnings decreased as dividends declared and share
repurchases exceeded net earnings.
We do not hold material cash and cash equivalents in currencies other than the US dollar and Canadian dollar. As at
December 31, 2023, we held approximately $243 million US dollar equivalent in other jurisdictions outside the US and Canada.
We do not depend on repatriation of cash from our foreign subsidiaries to meet our liquidity and capital resource needs in
North America.
Nutrien Annual Report 2023
67
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Liquidity and capital resources
Sources and uses of liquidity
Liquidity risk arises from our general funding needs and in the management of our assets, liabilities and capital structure. We
manage liquidity risk to maintain sufficient liquid financial resources to fund our financial position and meet our commitments
and obligations in a cost-effective manner. Our 2023 significant liquidity sources are listed below along with our expected
ongoing primary uses of liquidity:
Primary uses of liquidity
Primary sources of liquidity
– inventory purchases and production
– operational expenses
– seasonal working capital requirements
– capital expenditures to sustain and grow our safe, reliable
– cash from operations (including customer prepayments)
– commercial paper issuances
– increase of credit facility limits and drawdowns
– debt capital markets
and cost-efficient operations
– business acquisitions
– shareholder returns through dividends and share
repurchases
– principal payments of debt securities
We believe that our internally generated cash flow, supplemented by available borrowings under new or existing financing
sources, if necessary, will be sufficient to meet our anticipated capital expenditures, planned growth and development
activities, and other cash requirements for the foreseeable future. We do not reasonably expect any presently known trend or
uncertainty to affect our ability to access our historical sources of liquidity.
Cash requirements
The following aggregated information about our contractual obligations and other commitments summarizes our liquidity and
capital resource requirements as at December 31, 2023. Commitments reflect the estimated cash outflows for these obligations.
(millions of US dollars)
Long-term debt
Estimated interest payments on long-term debt
Lease liabilities
Estimated interest payments on lease liabilities
Purchase commitments
Capital commitments
Other commitments
Derivatives
Asset retirement obligations and accrued
environmental costs
Total
Consolidated
financial
statements note
reference
Notes 18, 26
Note 26
Notes 19, 26
Note 26
Note 26
Note 26
Note 26
Note 10
Note 22
Payments due by period
Total
9,214
6,125
1,326
199
1,350
172
715
16
Within 1
year
512
454
327
41
938
153
188
16
5,029
24,146
150
2,779
1 to 3
years
1,528
796
427
57
249
19
221
–
214
3,511
3 to 5
years
Over 5
years
870
686
189
33
57
–
149
–
6,304
4,189
383
68
106
–
157
–
140
2,124
4,525
15,732
The information presented in the table above does not include planned (but not legally committed) capital expenditures,
business acquisitions or shareholder returns including share repurchases and dividends.
68 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
We incurred $50 million of capital expenditures related to the completion of our GHG Phase 1 abatement program since 2021.
We originally anticipated investing more than $500 million to achieve at least a 30 percent reduction in GHG emissions (Scope 1
and 2) per tonne of our products produced, from a baseline year of 2018, by 2030. We continue to evaluate our strategic
emissions abatement projects, including for technical and economic feasibility, as well as estimates on our expected capital
expenditures to achieve our 2030 emissions intensity reduction target.
For information on income taxes and pension and other post-retirement benefits funding, refer to Note 8 and Note 21,
respectively, to the consolidated financial statements. Future cash requirements are subject to changes in regulations, actuarial
assumptions and our expected operating results.
On February 21, 2024, our Board of Directors approved a share repurchase program of up to a maximum of 24,728,159,
representing 5 percent of Nutrien’s outstanding common shares. The 2024 normal course issuer bid, which is subject to
acceptance by the Toronto Stock Exchange, will commence on March 1, 2024. The share repurchase program will expire on the
earlier of February 28, 2025, the date on which we have acquired the maximum number of common shares allowable or the date
we determine not to make any further repurchases.
On February 21, 2024, our Board of Directors declared and increased our quarterly dividend to $0.54 per share payable on
April 11, 2024, to shareholders of record on March 28, 2024. The total estimated dividend to be paid is $265 million.
Sources and uses of cash
Cash
provided by
operating
activities
Cash used
in investing
activities
Cash used
in financing
activities
– Lower cash provided by operating activities
from lower net realized selling prices across all
segments compared to the historically strong
benchmark prices in 2022.
– Higher cash used in investing activities due to
higher turnaround activities and investing capital
expenditures as we completed our committed
projects prior to our strategic actions to reduce
capital spending.
– Lower cash used in financing activities due to
decreased share repurchases in 2023. We also had
lower proceeds from our short-term and long-
term debt in 2023 compared to 2022 by $500
million.
Nutrien Annual Report 2023
69
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Capital structure and management
We manage our capital structure with a focus on maintaining a strong balance sheet, enabling a strong investment-grade
credit rating.
Principal debt instruments
We use a combination of cash provided by operating activities and short-term and long-term debt to finance our operations.
Senior notes and debentures
As at December 31, 2023, our long-term debt consisted primarily of senior notes and debentures with the following maturities
and interest rates:
Senior notes repaid 2023
Senior notes issued 2023
Senior notes issued 2023
Twelve Months Ended
December 31
Rate of interest (%)
Maturity
Amount
1.9
4.9
5.8
May 13, 2023
March 27, 2028
March 27, 2053
500
750
750
1,500
The senior notes issued in the twelve months ended December 31, 2023, are unsecured, rank equally with our existing
unsecured debt, and have no sinking fund requirements prior to maturity. Each series is redeemable and has various
provisions for redemption prior to maturity, at our option, at specified prices.
Credit facilities and other debt
We have several available credit facilities in the jurisdictions
where we operate. We have a commercial paper program,
which is limited to the undrawn amount under our $4,500
million unsecured revolving term credit facility and excess
cash invested in highly liquid securities. As at December 31,
2023, we had a $1,175 million outstanding balance in
commercial paper.
As at December 31, 2023, $252 million in letters of credit
were outstanding and committed, with $203 million of
remaining credit available under our dedicated letter of
credit facilities.
70 Nutrien Annual Report 2023
Five-year highlights
Financial statements and notes
Overview
MD&A
Results
Lease obligations
We also had lease obligations totaling $1,326 million (including current portion) with a weighted average effective interest rate
of 4.3 percent as at December 31, 2023.
Debt covenants
Our credit facilities have financial tests and other covenants with which we must comply with at each quarter-end. Non-
compliance with any such covenants could result in accelerated payment of amounts borrowed and termination of lenders’
further funding obligations under the credit facilities. We were in compliance with all such covenants as at December 31, 2023.
The table below summarizes the limit and result of our key financial covenant:
As at December 31
Debt to capital ratio 1
Limit
2023
0.65 : 1.00
0.33 : 1.00
1 Refer to Note 24 to the consolidated financial statements for the detailed calculation.
Credit ratings
Our ability to access reasonably priced debt in the capital markets depends, in part, on the quality of our credit ratings. We
continue to maintain investment-grade credit ratings for our long-term debt. A downgrade of the credit rating of our long-term
debt could increase the interest rates applicable to borrowings under our credit facilities.
Commercial paper markets are normally a source of same-day cash for us. Our access to the US commercial paper market
primarily depends on maintaining our current short-term credit ratings as well as general conditions in the money markets.
Long-term debt rating (outlook)
Short-term debt rating
As at December 31
2023
2022
Moody’s
S&P
Baa2 (stable)
BBB (stable)
Baa2 (stable)
BBB (positive)
2023
P-2
A-2
2022
P-2
A-2
A credit rating is not a recommendation to buy, sell or hold securities. Such ratings may be subject to revision or withdrawal at
any time by the respective credit rating agency and each rating should be evaluated independently of any other rating.
S&P’s stable outlook on Nutrien’s credit ratings means that the ratings are not likely to change (generally up to two years).
Outstanding share data
Common shares
Options to purchase common shares
February 22, 2024
494,563,180
3,214,971
For more information on our capital structure and management, see Note 24 to the consolidated financial statements.
Nutrien Annual Report 2023
71
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Other financial information
Nature of financial
information and
consolidated financial statements
note reference
Description
Off-balance sheet
arrangements
(Notes 10, 11, 22, 27
and 29)
Related party transactions
(Note 28)
Financial instruments and
other instruments
(Note 10)
Principal off-balance sheet activities primarily include:
– Agreement to reimburse losses of Canpotex.
– Issuance of guarantee contracts.
– An agency arrangement with a financial institution in relation to certain customer loans.
– Certain non-financial derivatives that were entered into and continued to be held for the
purpose of the receipt or delivery of a non-financial item, such as grain or natural gas, in
accordance with expected purchase, sale or usage requirements. Other derivatives are
included on our balance sheet at fair value.
We do not reasonably expect any presently known trend or uncertainty to affect our ability to
continue using these arrangements, except as indicated above.
Our most significant related party is Canpotex, which provides us with low-cost marketing and
logistics for the offshore potash markets that we serve.
Our financial instruments are subject to various risks such as credit, liquidity and market risks.
As discussed in the “Governance” section, our ELT is responsible for ensuring our principal risks,
including financial risks, are being appropriately identified, assessed and addressed.
Critical accounting estimates
We prepare our consolidated financial statements in accordance with IFRS, which requires us to make judgments, assumptions
and estimates in applying accounting policies. Critical accounting estimates are those which are highly uncertain at the time
they are made or where different estimates would be reasonably likely to have a material impact on our financial condition or
results of operations. We have discussed the development, selection and application of our key accounting policies, and the
critical accounting estimates and assumptions they involve, with the Audit Committee of the Board.
72 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Refer to the notes to the consolidated financial statements for additional information on the following critical accounting
estimates including methodology used for calculating our estimates (when applicable), key assumptions used, and factors
considered in our estimates and judgments.
Consolidated
financial statements
note reference
Critical accounting estimate description
Note 13 and Note 30
Long-lived asset impairments and reversals
We review, at each reporting period, for conditions to determine whether there is any indication that
an impairment exists that could potentially impact the carrying amount of our long-lived assets to
be held and used. When such indicators exist, impairment testing is performed. We review, at
each reporting period, for possible reversal of the impairment for non-financial assets, other
than goodwill.
In 2023, we identified an impairment trigger for our Phosphate cash generating units (“CGUs”), White
Springs and Aurora, primarily as a result of the decrease in our forecasted phosphate margins. As a
result of the impairment analysis, we recorded a non-cash impairment of property, plant and
equipment amounting to $233 million at our White Springs CGU as the recoverable amount was less
than its carrying value. The White Springs CGU has a shorter expected mine life and is therefore more
sensitive to changes in short- and medium-term forecasted phosphate margins. We determined
there was no impairment for our Aurora CGU.
The White Springs CGU and Aurora CGU had recoverable amounts of $504 million and $2,000 million,
respectively. The following table highlights sensitivities to the recoverable amounts which could
result in additional impairment losses or reversals of the previously recorded losses (relating to the
White Springs CGU). The sensitivities have been calculated independently of changes in other key
variables. Dollar amounts are in millions, except as otherwise noted.
Change to recoverable amount ($)
Key assumptions as at June 30, 2023
Change in assumption
White Springs
Aurora
Long-term growth rate (%)
Pre-tax discount rate (%)
Post-tax discount rate (%)
Forecasted EBITDA over forecast
period ($)
+/-1.0 percent
+/-1.0 percent
+/-1.0 percent
+/-5.0 percent
n/a
-/+20
n/a
+/-40
+/-110
n/a
-/+190
+/-220
In 2023, we identified an impairment trigger for our Trinidad CGU, part of our Nitrogen
segment, and recognized a $76 million non-cash impairment to property, plant and
equipment, due to a new natural gas contract and the resulting outlook for higher expected
natural gas costs and constrained near-term availability. We expect improved natural
gas availability in Trinidad as the development of additional natural gas fields is anticipated
to add new natural gas supply starting in 2026.
The Trinidad CGU had a recoverable amount of $676 million. The following table highlights
sensitivities to the recoverable amount of our Trinidad CGU, which could result in additional
impairment losses or reversals of the previously recorded losses. The sensitivities have been
calculated independently of changes in other key variables. Dollar amounts are in millions,
except as otherwise noted.
Key assumptions as at December 31, 2023
Change in assumption
Change to recoverable amount ($)
Long-term growth rate (%)
Post-tax discount rate (%)
Forecasted EBITDA over forecast
period ($)
+/-1.0 percent
+/-1.0 percent
+/-5.0 percent
+/-55
-/+95
+/-100
Nutrien Annual Report 2023
73
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Financial statement
reference
Note 14 and Note 30
Note 22 and Note 30
Critical accounting estimate description
Goodwill impairment indicators
We test our operating segments that have goodwill allocated to them when events or circumstances
indicate that there could be an impairment, or at least annually on October 1. The key assumptions
with the greatest influence on the calculation of the recoverable amounts are the discount rates,
terminal growth rates and forecasted EBITDA. The key forecast assumptions were based on historical
data and our estimates of future results from internal sources considering industry and market
information. Key assumptions in our testing models may change, and changes that could reasonably
be expected to occur may cause impairment. Such change in assumptions could be driven by global
supply and demand, other market factors, changes in regulations, and other future events outside
our control.
Recent acquisitions in Brazil resulted in goodwill being recognized for our Retail – South America
group of CGUs. Goodwill is more susceptible to impairment risk if business operating results or
economic conditions deteriorate and we anticipate not meeting our forecasts. In 2023, we revised
our forecasted EBITDA for the Retail – South America group of CGUs, which triggered an impairment
analysis. Due to the impact of crop input price volatility, more moderate long-term growth
assumptions and higher interest rates, we lowered our product margin expectations and deferred
certain of our planned strategic investments. As a result, this reduced our forecasted EBITDA and
growth. As at June 30, 2023, the Retail – South America group of CGUs recoverable amount was lower
than its carrying amount. As a result, we fully impaired goodwill of $422 million and recorded a
$43 million impairment of intangible assets for a total of $465 million for the Retail – South America
group of CGUs.
The following table highlights sensitivities to the recoverable amount which could have resulted in
additional impairment against the carrying amount of intangible assets and property, plant and
equipment. The sensitivities have been calculated independently of changes in other key variables.
Dollar amounts are in millions, except as otherwise noted.
Key assumptions as at June 30, 2023
Change in key assumption
Terminal growth rate (%)
Discount rate (%)
Forecasted EBITDA over forecast period ($)
-1.0 percent
+1.0 percent
-5.0 percent
Decrease to
recoverable amount ($)
50
120
100
The Retail – North America group of CGUs has $6,981 million in associated goodwill and at the annual
testing date of October 1, 2023, the recoverable amount did not substantially exceed its carrying
amount. The Retail – North America group of CGUs recoverable amount exceeds its carrying amount
by $570 million. The following table indicates the percentage by which key assumptions would need
to change individually for the estimated recoverable amount to be equal to the carrying amount.
Dollar amounts are in millions, except as otherwise noted.
2023 Annual impairment testing
Terminal growth rate (%)
Discount rate (%)
Forecasted EBITDA over forecast period ($)
Key assumption used
in impairment model
Change required for carrying amount
to equal recoverable amount
2.5
8.6
8,040
0.4 percent decrease
0.2 percent increase
3.0 percent decrease
Asset retirement obligations (“AROs”) and accrued environmental costs (“ERLs”) –
measurement
AROs and ERLs have a high degree of estimation uncertainty for future costs and estimated
remediation timelines. The Potash and Phosphate segments have AROs and ERLs associated with
their mining operations while the Corporate and Others segment has these liabilities associated with
non-operational mines.
For the Nitrogen segment, there are no significant AROs recorded as there is no reasonable basis for
estimating a date or range of dates of cessation of operations. We considered the historical
performance of our facilities as well as our planned maintenance, major upgrades and replacements,
which can extend the useful lives of our facilities indefinitely.
74 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Quarterly results
(millions of US dollars, except as otherwise noted)
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Sales
Net earnings
Net earnings attributable to equity holders of Nutrien
Net earnings per share attributable to equity holders
5,664
176
172
5,631
82
75
11,654
448
440
6,107
576
571
7,533
1,118
1,112
8,188
1,583
1,577
14,506
3,601
3,593
7,657
1,385
1,378
2023
2022
of Nutrien
Basic
Diluted
0.35
0.35
0.15
0.15
0.89
0.89
1.14
1.14
2.15
2.15
2.95
2.94
6.53
6.51
2.49
2.49
Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally
higher in spring and fall application seasons. Crop input inventories are normally accumulated leading up to each application
season. The results of this seasonality have a corresponding effect on receivables from customers and rebates receivables,
inventories, prepaid expenses and other current assets, and trade payables. Our short-term debt also fluctuates during the year
to meet working capital needs. Our cash collections generally occur after the application season is complete, while customer
prepayments made to us are typically concentrated in December and January and inventory prepayments paid to our vendors
are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed
throughout the year.
Our earnings are significantly affected by fertilizer benchmark prices, which have been volatile over the last two years and are
affected by demand-supply conditions, grower affordability and weather.
Other material transactions or events that impacted our quarterly results included:
Quarter
2023 Q2
2022 Q3
2022 Q2
Transaction or event
$698 million non-cash impairment of assets comprising a $233 million non-cash impairment of our
Phosphate White Springs property, plant and equipment due to a decrease in our forecasted phosphate
margins and a $465 million non-cash impairment of our Retail – South America assets primarily related to
goodwill mainly due to the impact of crop input price volatility, more moderate long-term growth
assumptions and higher interest rates which lowered our forecasted earnings.
$330 million reversal of non-cash impairment of our Phosphate White Springs property, plant and
equipment related to higher forecasted global prices and a more favorable outlook for phosphate margins.
$450 million reversal of non-cash impairment of our Phosphate Aurora property, plant and equipment
related to higher forecasted global prices and a more favorable outlook for phosphate margins.
Nutrien Annual Report 2023
75
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Fourth quarter financial
performance
(millions of US dollars, except as
otherwise noted)
Sales
Gross margin
Three months ended December 31
2023
2022
% Change
2023
2022
% Change
Retail
Crop nutrients
Crop protection products
Seed
Merchandise
Nutrien Financial
Services and other
Nutrien Financial elimination 1
Total
1,808
960
202
251
70
236
(25)
3,502
2,320
981
251
264
62
237
(28)
4,087
(22)
(2)
(20)
(5)
13
–
(11)
(14)
346
333
36
41
70
188
(25)
989
349
413
46
41
62
194
(28)
1,077
(1)
(19)
(22)
–
13
(3)
(11)
(8)
1 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.
(US dollars, except as otherwise noted)
Manufactured product sales tonnes (thousands)
Manufactured product average per tonne
Three months ended December 31
2023
2022
% Change
2023
2022
% Change
Potash
North America
Offshore
Sales
Cost of goods sold
Gross margin
Nitrogen
Ammonia
Urea and ESN® 1
Solutions, nitrates and
sulfates
Sales
Cost of goods sold 1
Gross margin
Phosphate
Fertilizer
Industrial and feed
Sales
Cost of goods sold
Gross margin
1,089
2,214
3,303
651
739
1,344
2,734
579
174
753
959
1,659
2,618
776
764
1,056
2,596
391
140
531
14
33
26
(16)
(3)
27
5
48
24
42
342
182
235
106
129
416
428
215
321
218
103
557
860
627
535
92
560
506
526
118
408
887
666
368
611
343
268
700
1,107
807
762
45
(39)
(64)
(55)
(10)
(68)
(53)
(36)
(42)
(47)
(36)
(62)
(20)
(22)
(22)
(30)
104
1 Certain immaterial 2022 figures have been reclassified.
76 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
(millions of US dollars, except as otherwise noted)
2023
2022
% Change
Three months ended December 31
Adjusted EBITDA
Retail
Potash
Nitrogen
Phosphate
Corporate and others
Eliminations
Adjusted EBITDA1
Net earnings
229
463
391
130
(117)
(21)
1,075
176
391
958
841
28
(180)
57
2,095
1,118
(41)
(52)
(54)
364
(35)
n/m
(49)
(84)
1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section for further information.
Highlights of our 2023 fourth quarter compared to the 2022 fourth quarter results were as follows:
Retail
Potash
Nitrogen
Phosphate
Other fourth quarter
financial highlights
Q4 2023 vs Q4 2022
Gross margin decreased in 2023 primarily due to lower gross margin for crop protection products. Crop protection
products sales were lower primarily due to decreased selling prices compared to the historically strong comparable
period in 2022. This was partially offset by higher sales in North America as growers returned to more normalized
buying behaviors. Crop nutrients sales and gross margin decreased due to lower selling prices across all regions
compared to the strong comparable period in 2022. Sales volumes increased as growers returned to more normalized
application rates to replenish nutrients in the soil. Seed sales and gross margin decreased due to lower soybean sales
volumes and competitive market prices in Latin America.
Gross margin decreased due to lower net realized selling prices, which more than offset higher North American and
Offshore sales volumes and lower royalties. Net realized selling price decreased compared to the historically strong
period in 2022, due to a decline in benchmark prices and higher costs related to logistical challenges at Canpotex’s
West Coast port facilities. Sales volumes in North America were higher due to lower channel inventory and increased
grower demand supported by an extended fall application window and improved affordability. Offshore sales volumes
were driven by stronger demand in Brazil and China. Cost of goods sold per tonne decreased mainly due to lower
royalties and reduced turnaround activity.
Gross margin was lower due to lower net realized selling prices for all major nitrogen products, which more than offset
lower natural gas costs and higher sales volumes. Net realized selling price was lower for all major nitrogen products
primarily due to weaker benchmark prices resulting from lower energy prices in key nitrogen producing regions. Sales
volumes were higher primarily due to higher UAN production and sales, partially offset by lower ammonia availability
mainly due to unplanned production outages at our plants in Trinidad. Cost of goods sold per tonne decreased mainly
due to lower natural gas costs.
We recognized a $76 million non-cash impairment of our Trinidad property, plant and equipment due to a new natural
gas contract and the resulting outlook for higher expected natural gas costs and constrained near-term availability.
We expect improved natural gas availability in Trinidad as the development of additional gas fields is anticipated to
add new supply starting in 2026.
Gross margin increased primarily due to lower sulfur and ammonia input costs, partially offset by lower net realized
selling prices. Net realized selling price decreased primarily due to lower fertilizer net realized selling prices from
weaker benchmark prices and lower industrial and feed net realized selling prices, which reflect the typical lag in price
realizations relative to spot fertilizer prices. Sales volumes increased mostly due to higher phosphate fertilizer
demand. Cost of goods sold per tonne decreased mainly due to lower ammonia and sulfur costs, partially offset by
higher depreciation from reversal of non-cash impairments in 2022.
The Corporate and Others segment reflects $142 million of higher expenses for asset retirement obligations and
accrued environmental costs related to our non-operating sites due to changes in closure cost estimates. Finance
costs were higher primarily due to higher interest rates and higher average long-term debt balances. Income tax
expense and effective tax rate reflect a $134 million income tax recovery due to changes to our tax declarations in
Switzerland (“Swiss Tax Reform adjustment”). The fourth quarter 2023 effective tax rate also includes the impact of
our losses in Retail – South America, wherein we did not recognize a corresponding deferred tax asset as it did not
meet the accounting criteria for asset recognition.
Nutrien Annual Report 2023
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Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Controls and procedures
Disclosure controls and procedures
We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be
disclosed by Nutrien in its annual filings, interim filings (as these terms are defined in National Instrument 52-109 – Certification
of Disclosure in Issuers’ Annual and Interim Filings (“NI 52-109”)), and other reports filed or submitted by us under securities
legislation is recorded, processed, summarized and reported within the required time periods. Our Chief Executive Officer and
Chief Financial Officer, after evaluating the effectiveness of our disclosure controls and procedures as of the end of the period
covered by the annual filings, being December 31, 2023, have concluded that, as of such date, our disclosure controls and
procedures were effective in providing reasonable assurance that information required to be disclosed by Nutrien in its annual
filings, interim filings, or other reports filed or submitted by it under securities legislation is (a) recorded, processed, summarized
and reported within the time periods specified in the securities legislation, and (b) accumulated and communicated to
management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure.
There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility
of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure
controls and procedures can only provide reasonable assurance of achieving their control objectives.
Internal control over financial reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in
Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, and NI 52-109. Internal control over
financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of
consolidated financial statements for external purposes in accordance with IFRS.
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial
Officer, we conducted an evaluation of the design and effectiveness of our internal control over financial reporting as of the end
of the fiscal year covered by this report based on the framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission in Internal Control – Integrated Framework (2013). Based on this evaluation, our Chief Executive Officer
and Chief Financial Officer concluded that, as at December 31, 2023, Nutrien Ltd. did maintain effective internal control over
financial reporting. There have been no changes that have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting.
The effectiveness of the Company’s internal control over financial reporting as at December 31, 2023 was audited by KPMG LLP,
as reflected in their report, which is included in this 2023 Annual Report.
78 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Forward-looking statements
Certain statements and other information included in this document, including within the “2024 Guidance” section and the “Market outlook”
sections for each segment, constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”)
under applicable securities laws (such statements are often accompanied by words such as “anticipate”, “forecast”, “expect”, “believe”, “may”,
“will”, “should”, “estimate”, “project”, “intend” or other similar words). All statements in this document, other than those relating to historical
information or current conditions, are forward-looking statements, including, but not limited to:
Nutrien’s business strategies, plans, prospects and opportunities; Nutrien’s 2024 annual guidance, including expectations regarding our Retail adjusted
EBITDA, Potash sales volumes, Nitrogen sales volumes, Phosphate sales volumes, depreciation and amortization, finance costs, effective tax rate on
adjusted earnings and capital expenditures; our projections to generate strong cash from operations and expectations regarding our capital allocation
intentions and strategies, including with respect to expansion of our portfolio of advanced nutrition products and overall growth of the Retail platform
and network optimization initiatives; our ability to advance strategic initiatives and high value growth investments, including expectations regarding
our ability to serve growers, maintain a low-cost position of fertilizer production assets and increase free cash flow; capital spending expectations for
2024 and beyond, including spending related to advancement of proprietary products, network optimization and digital capabilities in Retail,
automation in Potash mining, and brownfield expansions in Nitrogen; expectations regarding our ability to generate free cash flow and return capital to
our shareholders, including our expectations regarding stable and growing dividends; our ability to reduce our GHG emissions, and the initiatives in
connection therewith, including the expected impacts in connection with the installment of our final N2O abatement project; expectations and
forecasts relating to our Aurora and White Springs CGUs and the reversals and impairments (as applicable) associated therewith; our ability to advance
strategic growth initiatives; the expected impacts and timing of new supply from additional gas fields in Trinidad; the resulting outlook of higher
expected gas costs and lower near-term availability from the new natural gas contract related to our Trinidad property, plant and equipment in our
Nitrogen segment and the impairments associated therewith; capital spending expectations for 2024 and beyond, including our intention to reduce
planned capital expenditures in 2024 and our goal to continuously improve in our initiatives and make selective and strategic investments;
expectations regarding Retail inventory levels in North America; expectations regarding performance of our operating segments in 2024, including
increased fertilizer sales volumes and growth in Retail earnings; our operating segment market outlooks and our expectations for global market
conditions and fundamentals in 2024 and beyond, including agriculture and crop nutrient markets and global energy supply, the anticipated supply
and demand for our products and services, expected market, industry and growing conditions with respect to crop nutrient application rates, planted
acres, grower crop investment, crop mix, including the need to replenish soil nutrient levels, production volumes and expenses, shipments, natural gas
costs and availability, consumption, prices, operating rates, the impact of seasonality, import and export volumes, economic sanctions, inventories,
crop development, natural gas curtailments in Trinidad and elsewhere, and global population growth expectations; the expected impact on nitrogen
volume growth of completed brownfield expansions at our Geismar site and the anticipated effects of our UAN debottleneck projects; expectations
concerning future product offerings; expectations regarding changes in the agriculture space, including continued farm consolidation in the US and
other developed markets and the continued advancement and adoption of technology and digital innovations, including the use and anticipated
effects of autonomous mining and reliability improvements, new crop input technologies, artificial technology, biostimulants, biological product
technologies and advanced nutrition products, and agronomic capabilities; expectations regarding environmental compliance requirements and costs,
including estimates of asset retirement obligations, federal and provincial carbon pricing, permits, approvals and site assessment and remediation
costs; expectations regarding our sustainability initiatives and our proposed responses to climate change, including our GHG emissions reduction
strategy and related programs and initiatives, our various sustainability performance goals, targets, costs, capital expenditures, commitments and
aspirations as set out in our Feeding the Future Plan and the 2023 ESG Report; our evaluation of future opportunities with respect to the suspended
Geismar clean ammonia project; the negotiation of sales and other contracts, including the expiry of existing contracts; initiatives to promote
innovative, sustainable and productive agriculture; timing and impacts of plant turnarounds; acquisitions and divestitures and the anticipated benefits
thereof; and expectations in connection with our ability to deliver long-term returns to shareholders.
These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which
could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these
forward-looking statements.
All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including
the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to
our experience and our perception of historical trends, the assumptions set forth below are not exhaustive of the factors that may affect any of the
forward-looking statements and the reader should not place undue reliance on these assumptions and such forward-looking statements. Current
conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty.
Mid-cycle scenarios are based on medium-term estimates for manufactured sales volumes and Retail adjusted EBITDA. Mid-cycle pricing
assumptions are based on a ten-year historical average of fertilizer benchmark pricing from June 2013 to June 2023, plus approximately $50 per
tonne. In respect of our mid-cycle scenario estimates, we have made assumptions with respect to, among other things: our expectations for global
economic conditions including supply and demand for fertilizer, fertilizer and commodity prices and global potash volumes returning to historical
trend line growth rates; our expectations for our logistics and production capacity; our expectations for Retail margin normalization; our ability to
increase sales volumes as global demand grows; and our expectations for access to and availability of capital, foreign exchange, inflation and
interest rates, costs and availability of labor and technology.
In respect of our GHG emissions reduction and other sustainability and climate-related initiatives and targets, we have made assumptions with
respect to, among other things: that such target is achievable by deploying capital into N2O abatement at our nitric acid production facilities,
energy efficiency improvements, carbon capture, utilization and storage, use of natural gas to generate electricity and waste heat recovery; our
ability to successfully deploy capital and pursue other operational measures, including the successful application to our current and future
operations of existing and new technologies; the successful implementation by us of proposed or potential plans in respect thereof; projected
capital investment levels, the flexibility of our capital spending plans and the associated sources of funding; our expectations for our production
mix between nitrogen, phosphate and potash and grid decarbonization (including timing thereof); our ability to otherwise implement all
Nutrien Annual Report 2023
79
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
technology necessary to achieve our GHG emissions reduction and other sustainability and climate-related initiatives and targets; and the
development, availability and performance of technology and technological innovations and associated expected future results. Additional key
assumptions that have been made in relation to the operation of our business as currently planned and our ability to achieve our business
objectives include, among other things, assumptions with respect to our ability to successfully implement our business strategies, growth and
capital allocation investments and initiatives that we will conduct our operations and achieve results of operations as anticipated; our ability to
successfully complete, integrate and realize the anticipated benefits of our already completed and future acquisitions and divestitures, and that
we will be able to implement our standards, controls, procedures and policies in respect of any acquired businesses and realize the expected
synergies on the anticipated timeline or at all; that future business, regulatory and industry conditions will be within the parameters expected by
us, including with respect to prices, expenses, margins, demand, supply, product availability, shipments, consumption, weather conditions,
including the current El Niño weather pattern, supplier agreements, product distribution agreements, availability, inventory levels, exports, crop
development and cost of labor and interest, exchange and effective tax rates; assumptions with respect to global economic conditions and the
accuracy of our market outlook expectations for 2024 and beyond; assumptions related to our assessment of recoverable amount estimates of
our assets, including in relation to our Retail – South America group of CGUs goodwill and intangible asset impairments; assumptions related to
the calculation of recoverable amount of our Aurora and White Springs CGUs, including internal sales and input price forecasts, discount rate,
long-term growth rate and end of expected mine life; assumptions with respect to the benefits of the brownfield expansions at our Geismar site;
assumptions related to the impairment of our Nitrogen and Phosphate property, plant and equipment; assumptions with respect to our
intention to complete share repurchases under our normal course issuer bid programs, including TSX approval, the funding of such share
repurchases, existing and future market conditions, including with respect to the price of our common shares, and compliance with respect to
applicable limitations under securities laws and regulations and stock exchange policies; assumptions related to our ability to fund our
dividends at the current level; our expectations regarding the impacts, direct and indirect, of certain geopolitical conflicts, including the war in
Eastern Europe and the conflict in the Middle East on, among other things, global supply and demand, including for crop nutrients, energy and
commodity prices, global interest rates, supply chains and the global macroeconomic environment, including inflation; assumptions regarding
future markets for clean ammonia; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital
markets for additional sources of financing; our ability to identify suitable candidates for acquisitions and divestitures and negotiate acceptable
terms; our ability to maintain investment grade ratings and achieve our performance targets; our ability to successfully negotiate sales and other
contracts; and our ability to successfully implement new initiatives and programs. Key assumptions with respect to our 2030 commitment of a
30% reduction in GHG emissions (Scope 1 and 2) per tonne of our products produced, from a baseline year of 2018, include growth in potash
production volumes, operating rates within expected parameters and grid decarbonization progressing on expected timelines.
Events or circumstances could cause actual results to differ materially from those in the forward-looking statements.
With respect to our GHG emissions reduction and other sustainability and climate-related initiatives and targets, such events or circumstances
include, but are not limited to: our ability to deploy sufficient capital to fund the necessary expenditures to implement the necessary operational
changes to achieve these initiatives and targets; our ability to implement requisite operational changes; our ability to implement some or all of the
technology necessary to efficiently and effectively achieve expected future results, including in respect of such GHG emissions reduction target;
the availability and commercial viability and scalability of emissions reduction strategies and related technology and products; and the
development and execution of implementing strategies to meet such GHG emissions reduction target.
With respect to our business generally and our ability to meet other targets, commitments, goals, strategies and related milestones and schedules
disclosed in this document, such events or circumstances include, but are not limited to: general global economic, market and business
conditions; failure to achieve expected results of our business strategy, capital allocation initiatives or results of operations; failure to complete
announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; seasonality; climate change
and weather conditions, including the current El Niño weather pattern, and impacts from regional flooding and/or drought conditions; failure to
execute on our strategies related to sustainability matters or to achieve our GHG emission and other related expectations, targets, goals and
commitments; crop planted acreage, yield and prices; the supply and demand and price levels for our products; governmental and regulatory
requirements and actions by governmental authorities, including changes in government policy (including tariffs, trade restrictions and climate
change initiatives), government ownership requirements, and changes in environmental, tax, antitrust, and other laws or regulations and the
interpretation thereof; political or military risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism
and industrial espionage; our ability to access sufficient, cost-effective and timely transportation, distribution and storage of products; the
occurrence of a major environmental or safety incident or becoming subject to legal or regulatory proceedings; innovation and cybersecurity risks
related to our systems, including our costs of addressing or mitigating such risks; counterparty and sovereign risk; delays in completion of
turnarounds at our major facilities or challenges related to our major facilities that are out of our control; interruptions of or constraints in
availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; the risk that rising
interest rates and/or deteriorated business operating results may result in the further impairment of assets or goodwill attributed to certain CGUs;
risks related to reputational loss; certain complications that may arise in our mining processes; the ability to attract, engage and retain skilled
employees and strikes or other forms of work stoppages; geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle
East, and their potential impact on, among other things, global market conditions and supply and demand, including for crop nutrients, energy
and commodity prices, interest rates, supply chains and the global economy generally; our ability to execute on our strategies related to
environmental, social and governance matters, and achieve expectations, targets and commitments; and other risk factors detailed from time to
time in Nutrien reports filed with the Canadian securities regulators and the SEC in the US.
The purpose of our 2024 Retail adjusted EBITDA, depreciation and amortization, finance costs, effective tax rate on adjusted earnings and capital
expenditures guidance ranges are to assist readers in understanding our expected and targeted financial results, and this information may not be
appropriate for other purposes.
The forward-looking statements in this document are made as of the date hereof and Nutrien disclaims any intention or obligation to update or
revise any forward-looking statements in this document as a result of new information or future events, except as may be required under
applicable Canadian securities legislation or applicable US federal securities laws.
80 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Appendix A – non-GAAP financial
measures
We use both IFRS measures and certain non-GAAP financial measures to assess performance. Non-GAAP financial measures are
financial measures disclosed by the Company that (a) depict historical or expected future financial performance, financial
position or cash flow of the Company, (b) with respect to their composition, exclude amounts that are included in, or include
amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary
financial statements of the Company, (c) are not disclosed in the financial statements of the Company and (d) are not a ratio,
fraction, percentage or similar representation. Non-GAAP ratios are financial measures disclosed by the Company that are in
the form of a ratio, fraction, percentage or similar representation that has a non-GAAP financial measure as one or more of its
components, and that are not disclosed in the financial statements of the Company.
These non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS and, therefore, are
unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-GAAP
financial measures and non-GAAP ratios provide transparent and useful supplemental information to help investors evaluate
our financial performance, financial condition and liquidity using the same measures as management. These non-GAAP financial
measures and non-GAAP ratios should not be considered as a substitute for, or superior to, measures of financial performance
prepared in accordance with IFRS.
The following section outlines our non-GAAP financial measures and non-GAAP ratios, their compositions, and why
management uses each measure. It also includes reconciliations to the most directly comparable IFRS measures. Except as
otherwise described herein, our non-GAAP financial measures and non-GAAP ratios are calculated on a consistent basis from
period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items
arise in the future, we generally exclude these items in our calculations.
Adjusted EBITDA (consolidated)
Most directly comparable IFRS financial measure: Net earnings (loss).
Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and
amortization, share-based compensation and certain foreign exchange gain/loss (net of related derivatives). We also adjust this
measure for the following other income and expenses that are excluded when management evaluates the performance of our
day-to-day operations: integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19
related expenses, gain or loss on disposal of certain businesses and investments, asset retirement obligations (“ARO”) and
accrued environmental costs (“ERL”) related to our non-operating sites, and loss on remitting cash from certain foreign
jurisdictions (e.g. Blue Chip Swaps). In 2023, we amended our calculation of adjusted EBITDA to adjust for the asset retirement
obligations and accrued environmental costs related to our non-operating sites and the loss on remitting cash from certain
foreign jurisdictions. We do not consider these to be part of our day-to-day operations. There were no similar income and
expense in the comparative periods.
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Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Why we use the measure and why it is useful to investors: It is not impacted by long-term investment and financing
decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service
debt and to meet other payment obligations and as a component of employee remuneration calculations.
(millions of US dollars)
Net earnings
Finance costs
Income tax (recovery) expense
Depreciation and amortization
EBITDA 1
Adjustments:
Integration and restructuring related costs
Share-based compensation (recovery) expense
Impairment (reversal of impairment) of assets
ARO/ERL expense for non-operating sites
Foreign exchange loss, net of related derivatives
Loss on Blue Chip Swaps
Gain on disposal of investment
COVID-19 related expenses 2
2023
1,282
793
670
2,169
4,914
49
(14)
774
152
91
92
–
–
2022
7,687
563
2,559
2,012
12,821
46
63
(780)
–
31
–
(19)
8
Adjusted EBITDA
6,058
12,170
1 EBITDA is calculated as net earnings before finance costs, income taxes, and depreciation and amortization.
2 COVID-19 related expenses primarily consist of increased cleaning and sanitization costs, the purchase of personal protective equipment, discretionary
supplemental employee costs, and costs related to construction delays from access limitations and other government restrictions.
Adjusted net earnings and adjusted net earnings per share
Most directly comparable IFRS financial measure: Net earnings (loss) and diluted net earnings (loss) per share.
Definition: Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based
compensation and certain foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the
following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-
day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19
related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments,
gain or loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting, asset
retirement obligations and accrued environmental costs related to our non-operating sites, loss on remitting cash from certain
foreign jurisdictions (e.g. Blue Chip Swaps), change in recognition of tax losses and deductible temporary differences related to
impairments and certain changes to tax declarations in Switzerland (“Swiss Tax Reform adjustment”) resulting in an income
tax recovery from the recognition of a deferred tax asset. In 2023, we amended our calculation of adjusted net earnings and
adjusted net earnings per share to adjust for the asset retirement obligations and accrued environmental costs related to our
non-operating sites, the loss on remitting cash from certain foreign jurisdictions, the change in recognition of Retail – South
America tax losses and deductible temporary differences and the Swiss Tax Reform adjustment. We do not consider these to be
part of our day-to-day operations. There were no similar income and expense in the comparative periods. We generally apply
the annual forecasted effective tax rate to our adjustments during the year, and at year-end, we apply the actual effective tax
rate. Prior to December 31, 2023, we applied a specific tax rate for material adjustments. Effective December 31, 2023, we
applied a tax rate specific to each adjustment.
82 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations and is
used as a component of employee remuneration calculations.
(millions of US dollars, except
as otherwise noted)
Increases
(decreases)
Post-tax
Per diluted
share
Increases
(decreases)
Post-tax
Per diluted
share
2023
2022
Net earnings attributable to equity holders
of Nutrien
Adjustments:
Share-based compensation (recovery)
expense
Foreign exchange loss, net of
related derivatives
Integration and restructuring related
costs
Impairment (reversal of impairment)
of assets
ARO/ERL expense for non-operating sites
Loss on Blue Chip Swaps
Change in recognition of deferred
tax assets
Swiss Tax Reform adjustment
COVID-19 related expenses
Gain on disposal of investment
Gain on settlement of discontinued
hedge accounting derivative
Adjusted net earnings
1,258
2.53
7,660
14.18
(14)
(11)
(0.02)
91
49
774
152
92
66
(134)
–
–
–
83
40
702
110
92
66
(134)
–
–
–
2,206
0.17
0.08
1.42
0.22
0.18
0.13
(0.27)
–
–
–
4.44
63
31
46
(780)
–
–
–
–
8
(19)
(18)
47
23
35
(619)
–
–
–
–
6
(14)
(14)
7,124
0.10
0.05
0.06
(1.15)
–
–
–
–
0.01
(0.03)
(0.03)
13.19
Gross margin excluding depreciation and amortization per tonne – manufactured
Most directly comparable IFRS financial measure: Gross margin.
Definition: Gross margin per tonne less depreciation and amortization per tonne for manufactured products. Reconciliations
are provided in the “Results – Operating Segment Performance” section.
Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which
excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions.
Potash controllable cash cost of product manufactured (“COPM”) per tonne
Most directly comparable IFRS financial measure: Cost of goods sold (“COGS”) for the Potash segment.
Definition: Total Potash COGS excluding depreciation and amortization expense included in COPM, royalties, natural gas costs
and carbon taxes, change in inventory, and other adjustments, divided by potash production tonnes.
Nutrien Annual Report 2023
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MD&A
Results
Five-year highlights
Financial statements and notes
Why we use the measure and why it is useful to investors: To assess operational performance. Potash controllable cash COPM
excludes the effects of production from other periods and the impacts of our long-term investment decisions, supporting a focus on
the performance of our day-to-day operations. Potash controllable cash COPM also excludes royalties and natural gas costs and
carbon taxes, which management does not consider controllable, as they are primarily driven by regulatory and market conditions.
(millions of US dollars, except as otherwise noted)
Total COGS – Potash
Change in inventory
Other adjustments 1
COPM
Depreciation and amortization in COPM
Royalties in COPM
Natural gas costs and carbon taxes in COPM
Controllable cash COPM
Production tonnes (tonnes – thousands)
Potash controllable cash COPM per tonne
2023
1,396
(40)
(26)
1,330
(427)
(100)
(46)
757
12,998
58
2022
1,400
58
(41)
1,417
(406)
(190)
(62)
759
13,007
58
1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory
and changes in inventory balances.
Ammonia controllable cash COPM per tonne
Most directly comparable IFRS financial measure: Total manufactured COGS for the Nitrogen segment.
Definition: Total Nitrogen COGS excluding depreciation and amortization expense included in COGS, cash COGS for products
other than ammonia, other adjustments, and natural gas and steam costs, divided by net ammonia production tonnes.
Why we use the measure and why it is useful to investors: To assess operational performance. Ammonia controllable cash
COPM excludes the effects of production from other periods, the costs of natural gas and steam, and long-term investment
decisions, supporting a focus on the performance of our day-to-day operations.
(millions of US dollars, except as otherwise noted)
Total manufactured COGS – Nitrogen 1
Total other COGS – Nitrogen 1
Total COGS – Nitrogen
Depreciation and amortization in COGS
Cash COGS for products other than ammonia
Ammonia
Total cash COGS before other adjustments
Other adjustments 2
Total cash COPM
Natural gas and steam costs in COPM
Controllable cash COPM
Production tonnes (net tonnes 3 – thousands)
Ammonia controllable cash COPM per tonne
2023
2,435
393
2,828
(474)
(1,693)
661
(222)
439
(304)
135
2,276
60
2022
3,370
882
4,252
(465)
(2,560)
1,227
(210)
1,017
(855)
162
2,754
59
1 Certain immaterial 2022 figures have been reclassified.
2 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory
and changes in inventory balances.
3 Ammonia tonnes available for sale, as not upgraded to other nitrogen products.
84 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Retail adjusted average working capital to sales and retail adjusted average working
capital to sales excluding Nutrien Financial
Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude
in our calculations the sales and working capital of certain acquisitions during the first year following the acquisition. We also
look at this metric excluding Nutrien Financial revenue and working capital.
Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A lower or higher percentage
represents increased or decreased efficiency, respectively. The metric excluding Nutrien Financial shows the impact that the
working capital of Nutrien Financial has on the ratio.
(millions of US dollars, except as otherwise noted)
2023
2022
Average current assets
Average current liabilities
Average working capital
Average working capital from certain recent acquisitions
Adjusted average working capital
Average Nutrien Financial working capital
Adjusted average working capital excluding Nutrien Financial
Sales
Sales from certain recent acquisitions
Adjusted sales
Nutrien Financial revenue
Adjusted sales excluding Nutrien Financial
Adjusted average working capital to sales (%)
Adjusted average working capital to sales excluding Nutrien Financial (%)
11,470
7,666
3,804
–
3,804
(3,561)
243
19,542
–
19,542
(322)
19,220
19
1
11,952
8,249
3,703
–
3,703
(3,311)
392
21,350
–
21,350
(267)
21,083
17
2
Nutrien Financial adjusted net interest margin
Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial net receivables
outstanding for the last four rolling quarters.
Why we use the measure and why it is useful to investors: Used by credit rating agencies and others to evaluate the financial
performance of Nutrien Financial.
(millions of US dollars, except as otherwise noted)
Nutrien Financial revenue
Deemed interest expense 1
Net interest
Average Nutrien Financial net receivables
Nutrien Financial adjusted net interest margin (%)
2023
322
(136)
186
3,561
5.2
2022
267
(41)
226
3,311
6.8
1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial.
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Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Retail cash operating coverage ratio
Definition: Retail selling, general and administrative, and other expenses (income), excluding depreciation and amortization
expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four
rolling quarters.
Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail
operations and to assess our Retail operating performance and ability to generate free cash flow.
(millions of US dollars, except as otherwise noted)
Selling expenses
General and administrative expenses
Other expenses
Operating expenses
Depreciation and amortization in operating expenses
Operating expenses excluding depreciation and amortization
Gross margin
Depreciation and amortization in cost of goods sold
Gross margin excluding depreciation and amortization
Cash operating coverage ratio (%)
Return on invested capital (“ROIC”)
2023
3,375
217
158
3,750
(749)
3,001
4,430
10
4,440
68
2022
3,392
200
29
3,621
(740)
2,881
5,179
12
5,191
55
Definition: ROIC is calculated as net operating profit after taxes divided by the average invested capital for the last four
rolling quarters.
Net operating profit after taxes, a non-GAAP financial measure, is calculated as earnings before finance costs and income taxes,
depreciation and amortization related to the fair value adjustments as a result of the Merger (the merger of equals transaction
between PotashCorp and Agrium), share-based compensation, and certain foreign exchange gain/loss (net of related
derivatives) and Nutrien Financial earnings before finance costs and income taxes. The most directly comparable IFRS financial
measure to net operating profit after taxes is earnings before finance costs and income taxes. We also adjust this measure for
the following other income and expenses that are excluded when management evaluates the performance of our day-to-day
operations: integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related
expenses, gain or loss on disposal of certain businesses and investments, and IFRS adoption transition adjustments. A tax rate of
25 percent is applied on the calculated amount. Prior to 2023, we were adjusting for Nutrien Financial revenue; however, in
2023, we updated our calculation to adjust for Nutrien Financial earnings before finance costs and income taxes to further refine
our calculations.
Invested capital is calculated as last four rolling quarter average of total assets less cash and cash equivalents; payables and
accrued charges; Merger fair value adjustments on goodwill, intangible assets, and property, plant and equipment; and average
Nutrien Financial working capital.
We exclude in our calculations the related financial information of certain acquisitions during the first year following
the acquisition.
86 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Why we use the measure and why it is useful to investors: In 2022, we added a new financial measure to evaluate how
efficiently we allocate our capital. ROIC provides useful information to evaluate our after-tax cash operating return on invested
capital and is used as a component of employee remuneration calculations.
(millions of US dollars, except as otherwise noted)
2023
2022
2021
Earnings before finance costs and income taxes
Merger adjustments 1
Integration and restructuring related costs
Share-based compensation (recovery) expense
Impairment (reversal of impairment) of assets
ARO/ERL expense for non-operating sites
COVID-19 related expenses
Foreign exchange loss, net of related derivatives
Loss on Blue Chip Swap transactions
Gain on disposal of investment
Cloud computing transition adjustment
Nutrien Financial earnings before finance costs and income taxes
Net operating profit
Tax (calculated at 25%)
Net operating profit after tax
2,745
194
49
(14)
774
152
–
91
92
–
–
(127)
3,956
989
2,967
10,809
231
46
63
(780)
–
8
31
–
(19)
–
(234)
10,155
2,539
7,616
4,781
277
43
198
33
–
45
39
–
–
36
(124)
5,328
1,332
3,996
1 Depreciation and amortization related to the fair value adjustments as a result of the Merger (the merger of equals transaction between PotashCorp
and Agrium).
Total assets
Cash and cash equivalents
Payables and accrued charges
Merger adjustments 1
Average Nutrien Financial receivables
Invested capital
53,874
(926)
(9,050)
(9,896)
(3,561)
54,228
(753)
(10,687)
(10,232)
(3,311)
48,880
(862)
(8,773)
(10,516)
(2,316)
30,441
29,245
26,413
1 Merger fair value adjustments on goodwill, intangible assets, and property, plant and equipment.
Return on invested capital (%)
10
26
15
Nutrien Annual Report 2023
87
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Appendix B – other financial measures
Supplementary financial measures
Supplementary financial measures are financial measures disclosed by the Company that (a) are, or are intended to be,
disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of
the Company, (b) are not disclosed in the financial statements of the Company, (c) are not non-GAAP financial measures, and
(d) are not non-GAAP ratios.
The following section provides an explanation of the composition of those supplementary financial measures if not
previously provided.
Retail adjusted EBITDA margin: Retail adjusted EBITDA divided by Retail sales for the last four rolling quarters.
Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and
include major repairs and maintenance and plant turnarounds.
Investing capital expenditures: Represents capital expenditures related to significant expansions of current operations or to
create cost savings (synergies). Investing capital expenditures excludes capital outlays for business acquisitions and equity-
accounted investees.
Mine development and pre-stripping capital expenditures: Represents capital expenditures that are required for activities to
open new areas underground and/or develop a mine or ore body to allow for future production mining and activities required to
prepare and/or access the ore, i.e., removal of an overburden that allows access to the ore.
Retail adjusted EBITDA per US selling location: Calculated as total Retail US adjusted EBITDA for the last four rolling quarters,
representing the organic EBITDA component, which excludes acquisitions in those quarters, divided by the number of US
locations that have generated sales in the last four rolling quarters, adjusted for acquired locations in those quarters.
Cash used for dividends and share repurchases (shareholder returns): Calculated as dividends paid to Nutrien’s
shareholders plus repurchase of common shares as reflected in the consolidated statements of cash flows. This measure is
useful as it represents return of capital to shareholders.
88 Nutrien Annual Report 2023
Overview
MD&A
Results
Five-year highlights
Financial statements and notes
Capital management measures
Capital management measures are financial measures disclosed by the Company that (a) are intended to enable an individual to
evaluate the Company’s objectives, policies and processes for managing the Company’s capital, (b) are not a component of a
line item disclosed in the primary financial statements of the Company, (c) are disclosed in the notes of the financial statements
of the Company, and (d) are not disclosed in the primary financial statements of the Company.
The following section outlines our capital management measure, its composition and why management uses the measure.
Adjusted net debt to adjusted EBITDA: Calculated as adjusted net debt to adjusted EBITDA. Both components are non-GAAP
financial measures. This ratio measures financial leverage and our ability to pay our debt.
The most directly comparable measure for adjusted net debt is total short-term and long-term debt and lease liabilities less
cash and cash equivalents and is defined as the total of short-term and long-term debt plus lease liabilities less cash and
cash equivalents and unamortized fair value adjustments. This measure is useful as it adjusts for the unamortized fair value
adjustments that arose at the time of the Merger and is non-cash in nature.
(millions of US dollars, except as otherwise noted)
Short-term debt
Current portion of long-term debt
Current portion of lease liabilities
Long-term debt
Lease liabilities
Total debt
Cash and cash equivalents
Unamortized fair value adjustments
Adjusted net debt
2023
1,815
512
327
8,913
999
2022
2,142
542
305
8,040
899
12,566
11,928
(941)
(294)
(901)
(310)
11,331
10,717
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Overview
MD&A
Five-year highlights
Financial statements and notes
Five-year highlights
The following information is not part of our MD&A on SEDAR+ and EDGAR and is furnished for those readers who may find value
in the use of such information over the long term.
Summary financial information
(millions of US dollars, except as otherwise noted)
2023
2022
2021
2020
2019
Operations
Sales 1
Earnings before finance costs and income taxes
Net earnings
Diluted net earnings per share (US dollars)
Finance costs
Adjusted EBITDA 2
Cash provided by operating activities
Balance sheet
Total assets
Short-term debt and long-term debt
(including leases)
Total shareholders’ equity
Common share information
Weighted average common shares (millions)
Closing share price on NYSE (US dollars)
Operating segment information
Retail net sales 1
Potash net sales
Nitrogen net sales
Phosphate net sales
Retail adjusted EBITDA
Potash adjusted EBITDA
Nitrogen adjusted EBITDA
Phosphate adjusted EBITDA
Capital allocation
Sustaining capital expenditures 3
Investing capital expenditures 3
Mine development and pre-stripping expenditures 3
Business acquisitions (net of cash acquired)
Dividends paid to Nutrien’s shareholders
Repurchase of common shares
29,056
2,745
1,282
2.53
793
6,058
5,066
37,884
10,809
7,687
14.18
563
12,170
8,110
27,712
4,781
3,179
5.52
613
7,126
3,886
20,908
902
459
0.81
520
3,667
3,323
20,084
1,862
992
1.70
554
4,025
3,665
52,749
54,586
49,954
47,192
46,799
12,566
25,201
497
56.33
19,542
3,759
4,207
1,993
1,459
2,404
1,930
470
1,421
988
262
153
1,032
1,047
11,928
25,863
540
73.03
21,350
7,899
7,533
2,377
2,293
5,769
3,931
594
1,449
792
234
407
1,031
4,520
10,846
23,699
571
75.20
17,734
4,036
4,689
1,829
1,939
2,736
2,308
540
1,247
510
156
88
1,045
1,035
11,360
22,403
570
48.16
14,785
2,146
2,740
1,202
1,430
1,190
1,080
232
919
511
109
233
1,030
160
11,104
22,907
583
47.91
13,282
2,604
2,848
1,368
1,231
1,593
1,239
194
1,018
772
96
911
1,022
1,930
1 Certain immaterial figures have been reclassified for 2019.
2 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Additional information relating to 2021, 2020 and 2019 is contained in the
“Appendix – Non-IFRS Financial Measures” sections of Nutrien’s MD&A dated February 17, 2022 for the year ended December 31, 2021, its MD&A dated
February 17, 2021 for the year ended December 31, 2020 and its MD&A dated February 19, 2020 for the year ended December 31, 2019, respectively, which
information is incorporated by reference herein. Such MD&A are available on SEDAR+ at sedarplus.ca.
3 These are supplementary financial measures. See the “Other Financial Measures” section.
90 Nutrien Annual Report 2023
Overview
MD&A
Five-year highlights
Financial statements and notes
Summary non-financial information
Safety
Total recordable injury frequency 1
Lost-time injury frequency 1
Serious injury and fatality incidents
Environment
Scope 1 and 2 GHG emissions (Mmt CO2e)
CO2 captured and sold (Mmt)
Sustainably engaged acres (millions) 2
Community
Community investment ($ millions)
Employees
Permanent employees at December 31
Total employee turnover rate (%)
Proportion of women (%)
Proportion of women in senior leadership (%)
2023
2022
2021
2020
2019
1.01
0.24
5
12.2
1.0
2
23
25,900
14
20
23
1.16
0.24
5
12.8
1.1
1
33
24,700
12
21
21
1.11
0.27
—
13.8
1.1
n/m
19
23,500
15
20
21
1.13
0.26
1
13.2
1.0
n/m
18
23,100
13
20
19
1.29
0.31
1
13.3
1.2
n/m
17
22,300
13
19
15
1 Restated 2019 to 2020 as a result of changes to classification of incidents.
2 Acres tracked in 2021 were part of the pilot program. Not applicable in 2019 to 2020.
Summary production and sales volumes
information
Production (thousands)
Potash production (product tonnes)
Nitrogen production (total ammonia tonnes) 1
Phosphate production (P2O5 tonnes)
Sales of manufactured product tonnes (thousands)
Retail crop nutrients tonnes sold
Potash tonnes sold
Nitrogen tonnes sold
Phosphate tonnes sold
1 All figures are provided on a gross production basis.
2023
2022
2021
2020
2019
12,998
5,357
1,406
12,632
13,216
10,423
2,551
13,007
5,759
1,351
11,513
12,537
10,023
2,378
13,790
5,996
1,518
13,383
13,625
10,725
2,619
12,595
6,063
1,444
12,732
12,824
10,966
2,781
11,700
6,164
1,514
11,048
11,521
10,270
2,889
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Overview
MD&A
Five-year highlights
Financial statements and notes
Financial
statements
and notes
Minas Gerais, Brazil
Brazil is home to almost
35 percent of the oranges
produced in the world and
more than half of the world’s
orange juice. Nutrien has over
180 Retail locations in Brazil,
including the main orange
producing area of Triângulo
Mineiro, also known as the
Citrus Belt.
92
Nutrien Annual Report 2023
Overview
MD&A
Five-year highlights
Financial statements and notes
Contents
Management’s responsibility
Reports of the independent registered public
accounting firm
Consolidated statements of earnings
Consolidated statements of comprehensive income
Consolidated statements of cash flows
Consolidated statements of changes in
shareholders’ equity
Consolidated balance sheets
94
Notes
95
98
98
99
100
101
1 | Description of business
2 | Basis of presentation
3 | Segment information
4 | Nature of expenses
5 | Share-based compensation
6 | Other expenses (income)
7 | Financial costs
8 | Income taxes
9 | Net earnings per share
10 | Financial instruments and related risk management
11 | Receivables
12 | Inventories
13 | Property, plant and equipment
14 | Goodwill and intangible assets
15 | Investments
16 | Other assets
17 | Short-term debt
18 | Long-term debt
19 | Lease liabilities
20 | Payables and accrued charges
21 | Pension and other post-retirement benefits
22 | Asset retirement obligations and accrued
environmental costs
23 | Share capital
24 | Capital management
25 | Business combinations
26 | Commitments
27 | Guarantees
28 | Related party transactions
29 | Contingencies and other matters
30 | Accounting policies, estimates and judgments
102
102
103
106
107
108
108
109
110
111
115
115
116
119
121
123
123
124
125
125
126
129
130
131
132
133
134
134
135
137
Nutrien Annual Report 2023
93
Overview
MD&A
Five-year highlights
Financial statements and notes
Management’s responsibility
Management’s responsibility
Management’s responsibility for financial reporting
Management’s report on the consolidated financial statements
The accompanying consolidated financial statements and related financial information are the responsibility of the
management of Nutrien Ltd. (the “Company”). They have been prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting Standards Board and include amounts based on estimates and
judgments. Financial information included elsewhere in this report is consistent with the consolidated financial statements.
The consolidated financial statements are approved by the Board of Directors on the recommendation of the Audit Committee.
The Audit Committee, appointed by the Board of Directors, is composed entirely of independent directors. The Audit Committee
discusses and analyzes the Company’s condensed consolidated financial statements and Management’s Discussion and
Analysis (“MD&A”) with management before such information is approved by the committee and submitted to securities
commissions or other regulatory authorities. The Audit Committee and management also analyze the annual consolidated
financial statements and MD&A prior to their approval by the Board of Directors.
The Audit Committee’s duties also include reviewing critical accounting policies and significant estimates and judgments
underlying the consolidated financial statements as presented by management and approving the fees of our independent
registered public accounting firm.
Our independent registered public accounting firm, KPMG LLP, performs an audit of the consolidated financial statements, the
results of which are reflected in their Report of Independent Registered Public Accounting Firm for 2023. KPMG LLP has full and
independent access to the Audit Committee to discuss their audit and related matters.
Management’s annual report on internal control over financial reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in
Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as amended, and National Instrument 52-109 – Certification
of Disclosure in Issuers’ Annual and Interim Filings. Internal control over financial reporting is designed to provide reasonable
assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in
accordance with IFRS.
Under our supervision and with the participation of management, the Company conducted an evaluation of the design and
effectiveness of our internal control over financial reporting as of the end of the fiscal year covered by this report, based on the
framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated
Framework (2013). Based on this evaluation, management concluded that, as of December 31, 2023, the Company did maintain
effective internal control over financial reporting.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2023 has been audited by
KPMG LLP, as reflected in their Report of Independent Registered Public Accounting Firm for 2023.
Ken Seitz
President and Chief Executive Officer
February 22, 2024
Pedro Farah
Executive Vice President and Chief Financial Officer
February 22, 2024
94 Nutrien Annual Report 2023
Overview
MD&A
Five-year highlights
Financial statements and notes
Report
Report of independent registered
public accounting firm
To the shareholders and Board of Directors of Nutrien Ltd.
Opinion on internal control over financial reporting
We have audited Nutrien Ltd. and subsidiaries’ (the “Company”) internal control over financial reporting as of December 31,
2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal
control over financial reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(“PCAOB”), the consolidated balance sheets of the Company as of December 31, 2023 and 2022, the related consolidated
statements of earnings, comprehensive income, cash flows, and changes in shareholders’ equity for the years then ended, and
the related notes (collectively, the “consolidated financial statements”), and our report dated February 22, 2024 expressed an
unqualified opinion on those consolidated financial statements.
Basis for opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual
Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal
control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required
to be independent with respect to the Company in accordance with the US federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control
over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and limitations of internal control over financial reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Chartered Professional Accountants
Calgary, Canada
February 22, 2024
Nutrien Annual Report 2023
95
Overview
MD&A
Five-year highlights
Financial statements and notes
Report
Report of independent registered
public accounting firm
To the shareholders and Board of Directors of Nutrien Ltd.
Opinion on the consolidated financial statements
We have audited the accompanying consolidated balance sheets of Nutrien Ltd. and subsidiaries (the “Company”) as of
December 31, 2023 and 2022, the related consolidated statements of earnings, comprehensive income, cash flows, and changes
in shareholders’ equity for the years then ended, and the related notes (collectively, the “consolidated financial statements”). In
our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company
as of December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended, in conformity with
International Financial Reporting Standards as issued by the International Accounting Standards Board.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in
Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission, and our report dated February 22, 2024 expressed an unqualified opinion on the effectiveness of the Company’s
internal control over financial reporting.
Basis for opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the
PCAOB and are required to be independent with respect to the Company in accordance with the US federal securities laws and
the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement,
whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the
consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial
statements. Our audits also included evaluating the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a
reasonable basis for our opinion.
Critical audit matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial
statements that were communicated or required to be communicated to the Audit Committee and that: (1) relate to accounts or
disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or
complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated
financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate
opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Goodwill impairment assessment of the Retail North America group of cash-generating units
As discussed in Note 14 to the consolidated financial statements, the carrying amount of goodwill as of December 31, 2023 was
$12,114 million, of which $6,981 million of goodwill is attributed to the Retail North America group of cash-generating units
(“Retail North America CGU”). The Retail North America CGU is tested for impairment annually, and whenever events or changes
in circumstances may indicate the carrying amount, including goodwill, exceeds its estimated recoverable amount. The
calculation of the recoverable amount of the Retail North America CGU involved estimates including forecasted earnings before
tax, interest, depreciation and amortization (“EBITDA”), terminal growth rate and the discount rate.
We identified the calculation of the recoverable amount of goodwill for the Retail North America CGU as of October 1, 2023 as a
critical audit matter. A high degree of auditor judgment was required to evaluate the Company’s forecasted EBITDA, terminal
growth rate and discount rate used to calculate the recoverable amount of the Retail North America CGU. Minor changes to
96 Nutrien Annual Report 2023
Overview
MD&A
Five-year highlights
Financial statements and notes
Report
these assumptions could have had a significant effect on the Company’s calculation of the recoverable amount of the Retail
North America CGU. Additionally, the audit effort associated with this estimate required specialized skills and knowledge.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and
tested the operating effectiveness of certain internal controls related to the calculation of the recoverable amount of goodwill
for the Retail North America CGU. This included controls related to the determination of forecasted EBITDA, terminal growth
rate and the discount rate. We evaluated the Company’s forecasted EBITDA for the Retail North America CGU by comparing to
historical results and forecasted planted acreage in the United States. We evaluated the terminal growth rate by comparing to
the historical growth of the Retail North America CGU and to market information, including forecasted inflation and forecasted
gross domestic product in the United States. We evaluated the Company’s historical forecasts of EBITDA by comparing to actual
results to assess the Company’s ability to accurately forecast. In addition, we involved valuation professionals with specialized
skills and knowledge, who assisted in:
– evaluating the Company’s determination of the discount rate by comparing the inputs to the discount rate to publicly
available market data for comparable entities and assessing the resulting discount rate, and
– evaluating the Company’s estimate of the recoverable amount of the Retail North America CGU by comparing the results of
the Company’s estimate to publicly available market data and valuation metrics for comparable entities.
Goodwill impairment assessment of the Retail South America group of cash-generating units
As discussed in Note 14 to the consolidated financial statements, the Company recorded impairment of $422 million to goodwill
and $43 million to intangible assets of the Retail South America group of cash-generating units (“Retail South America CGU”)
during the year ended December 31, 2023. The Retail South America CGU is tested for impairment annually, and whenever
events or changes in circumstances may indicate the carrying amount, including goodwill, exceeds its estimated recoverable
amount. An indicator of impairment was identified as of June 30, 2023 due to a reduction to forecasted earnings and growth.
The calculation of the recoverable amount of the Retail South America CGU involved estimates including forecasted earnings
before tax, interest, depreciation and amortization (“EBITDA”), terminal growth rate and the discount rate.
We identified the calculation of the recoverable amount of the Retail South America CGU as of June 30, 2023 as a critical audit
matter. A high degree of auditor judgment was required to evaluate the Company’s forecasted EBITDA, terminal growth rate and
discount rate used to calculate the recoverable amount of the Retail South America CGU. The forecasted EBITDA and terminal
growth rate assumptions were challenging to test as they represented subjective determinations of future market and economic
conditions that were also sensitive to variation. Additionally, the audit effort associated with this estimate required specialized
skills and knowledge.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and
tested the operating effectiveness of certain internal controls related to the calculation of the recoverable amount of the Retail
South America CGU. This included controls related to the determination of forecasted EBITDA, terminal growth rate and the
discount rate. We evaluated the Company’s forecasted EBITDA for the Retail South America CGU by comparing to historical
results and external market forecasts of planted acreage and exports. We evaluated the terminal growth rate by comparing to
the historical growth of the Retail South America CGU and to market information, including forecasted inflation and forecasted
gross domestic product in Brazil and Argentina. We evaluated the Company’s historical forecasts of EBITDA by comparing to
actual results to assess the Company’s ability to accurately forecast. In addition, we involved valuation professionals with
specialized skills and knowledge, who assisted in:
– evaluating the Company’s determination of the discount rate by comparing the inputs to the discount rate to publicly
available market data for comparable entities and assessing the resulting discount rate, and
– evaluating the Company’s estimate of the recoverable amount of the Retail South America CGU by comparing the results of
the Company’s estimate to publicly available market data and valuation metrics for comparable entities.
Chartered Professional Accountants
We have served as the Company’s auditor since 2018.
Calgary, Canada
February 22, 2024
Nutrien Annual Report 2023
97
Overview
MD&A
Five-year highlights
Financial statements and notes
Financial statements
Consolidated statements of earnings
For the years ended December 31
Sales
Freight, transportation and distribution
Cost of goods sold
Gross margin
Selling expenses
General and administrative expenses
Provincial mining taxes
Share-based compensation (recovery) expense
Impairment (reversal of impairment) of assets
Other expenses
Earnings before finance costs and income taxes
Finance costs
Earnings before income taxes
Income tax expense
Net earnings
Attributable to
Equity holders of Nutrien
Non-controlling interest
Net earnings
Net earnings per share attributable to equity holders of Nutrien (“EPS”)
Basic
Diluted
Weighted average shares outstanding for basic EPS
Weighted average shares outstanding for diluted EPS
Note
3
4
4, 12
4
4
4
5
13, 14
6
7
8
9
9
9
2023
29,056
974
19,608
8,474
3,397
626
398
(14)
774
548
2,745
793
1,952
670
1,282
1,258
24
1,282
2.53
2.53
2022
37,884
872
21,588
15,424
3,414
565
1,149
63
(780)
204
10,809
563
10,246
2,559
7,687
7,660
27
7,687
14.22
14.18
496,381,000
496,994,000
538,475,000
540,010,000
Consolidated statements of
comprehensive income
For the years ended December 31 (net of related income taxes)
Net earnings
Other comprehensive income (loss)
Items that will not be reclassified to net earnings:
Net actuarial (loss) gain on defined benefit plans
Net fair value gain (loss) on investments
Items that have been or may be subsequently reclassified to net earnings:
Gain (loss) on currency translation of foreign operations
Other
Note
21
15
Other comprehensive income (loss)
Comprehensive income
Attributable to
Equity holders of Nutrien
Non-controlling interest
Comprehensive income
(See Notes to the consolidated financial statements)
2023
1,282
(17)
4
89
5
81
2022
7,687
83
(44)
(199)
(17)
(177)
1,363
7,510
1,338
25
1,363
7,484
26
7,510
98 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Financial statements
Consolidated statements of cash flows
For the years ended December 31
Note
2023
Operating activities
Net earnings
Adjustments for:
Depreciation and amortization
Share-based compensation (recovery) expense
Impairment (reversal of impairment) of assets
Provision for deferred income tax
Net distributed (undistributed) earnings of equity-accounted investees
Gain on amendments to other post-retirement pension plans
Loss on Blue Chip Swaps
Long-term income tax receivables and payables
Other long-term assets, liabilities and miscellaneous
Cash from operations before working capital changes
Changes in non-cash operating working capital:
Receivables
Inventories and prepaid expenses and other current assets
Payables and accrued charges
Cash provided by operating activities
Investing activities
Capital expenditures1
Business acquisitions, net of cash acquired
Proceeds from sales of Blue Chip Swaps, net of purchases
Net changes in non-cash working capital
Other
Cash used in investing activities
Financing activities
(Repayment of) proceeds from short-term debt, net
Proceeds from long-term debt
Repayment of long-term debt
Repayment of principal portion of lease liabilities
Dividends paid to Nutrien’s shareholders
Repurchase of common shares
Issuance of common shares
Other
Cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Increase in cash and cash equivalents
Cash and cash equivalents – beginning of year
Cash and cash equivalents – end of year
Cash and cash equivalents is composed of:
Cash
Short-term investments
Supplemental cash flows information
Interest paid
Income taxes paid
Total cash outflow for leases
5
13, 14
21
6
16
13, 14
25
6
17, 18
18
18
18, 19
23
23
23
1,282
2,169
(14)
774
7
117
(80)
92
(65)
277
4,559
879
1,376
(1,748)
5,066
(2,671)
(153)
(92)
(22)
(20)
(2,958)
(458)
1,500
(648)
(375)
(1,032)
(1,047)
33
(34)
(2,061)
(7)
40
901
941
909
32
941
729
1,764
501
2022
Note 2
7,687
2,012
63
(780)
182
(181)
–
–
273
2
9,258
(919)
(1,167)
938
8,110
(2,475)
(407)
–
(44)
25
(2,901)
529
1,045
(561)
(341)
(1,031)
(4,520)
168
(20)
(4,731)
(76)
402
499
901
775
126
901
482
1,882
459
1
Includes additions to property, plant and equipment, and intangible assets of $2,465 and $206 (2022 – $2,253 and $222), respectively.
(See Notes to the consolidated financial statements)
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023
99
Overview
MD&A
Five-year highlights
Financial statements and notes
Financial statements
Consolidated statements of changes
in shareholders’ equity
Number of
common
shares
Share
capital
Contributed
surplus
557,492,516
–
15,457
–
–
–
149
–
–
(53,312,559)
(1,487)
(22)
–
–
–
–
–
–
3,066,148
202
(18)
–
–
–
–
–
–
Balance –
December 31, 2021
Net earnings
Other comprehensive
(loss) income
Shares repurchased
(Note 23)
Dividends declared
(Note 23)
Non-controlling
interest transactions
Effect of share-based
compensation
including issuance
of common shares
(Note 5)
Transfer of net loss on
cash flow hedges
Transfer of net
actuarial gain on
defined benefit
plans
Balance –
Net earnings
Other comprehensive
income (loss)
Shares repurchased
(Note 23)
Dividends declared
(Note 23)
Non-controlling
interest transactions
Effect of share-based
compensation
including issuance
of common shares
(Note 5)
Transfer of net gain
on sale of
investment
Transfer of net loss on
cash flow hedges
Transfer of net
actuarial loss on
defined benefit
plans
Balance –
–
–
–
–
–
–
(13,378,189)
(374)
(26)
–
–
–
–
683,814
40
–
–
–
–
–
–
–
–
–
–
–
–
Accumulated other
comprehensive
(loss) income (“AOCI”)
(Loss)
gain on
currency
translation of
foreign
operations Other
Total
AOCI
Retained
earnings
Equity
holders
of
Nutrien
Non-
controlling
interest
Total
equity
(176)
–
30
–
(146)
–
8,192
7,660
23,652
7,660
47
27
23,699
7,687
(198)
22
(176)
–
(176)
(1)
(177)
–
–
–
–
–
–
(2,987)
(4,496)
(1,019)
(1,019)
–
–
(4,496)
(1,019)
(1)
(1)
(28)
(29)
–
–
–
–
–
–
88
–
–
–
–
–
–
–
14
–
14
–
–
184
14
–
(83)
(83)
83
–
–
–
1,258
1,258
(8)
80
–
80
(600)
(1,000)
(1,050)
(1,050)
–
–
–
–
–
–
–
–
(14)
(14)
12
12
–
14
–
40
–
12
–
17
17
(17)
–
–
–
–
184
14
–
45
24
25,863
1,282
1
–
–
81
(1,000)
(1,050)
–
–
–
–
40
–
12
–
(2)
(2)
(25)
(27)
December 31, 2022
507,246,105
14,172
109
(374)
(17)
(391)
11,928
25,818
December 31, 2023
494,551,730
13,838
83
(286)
(10)
(296)
11,531
25,156
45
25,201
(See Notes to the consolidated financial statements)
100 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Financial statements
Consolidated balance sheets
As at December 31
Assets
Current assets
Cash and cash equivalents
Receivables
Inventories
Prepaid expenses and other current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments
Other assets
Total assets
Liabilities
Current liabilities
Short-term debt
Current portion of long-term debt
Current portion of lease liabilities
Payables and accrued charges
Non-current liabilities
Long-term debt
Lease liabilities
Deferred income tax liabilities
Pension and other post-retirement benefit liabilities
Asset retirement obligations and accrued environmental costs
Other non-current liabilities
Total liabilities
Shareholders’ equity
Share capital
Contributed surplus
Accumulated other comprehensive loss
Retained earnings
Equity holders of Nutrien
Non-controlling interest
Total shareholders’ equity
Total liabilities and shareholders’ equity
(See Notes to the consolidated financial statements)
Approved by the Board of Directors,
Note
2023
2022
11
12
13
14
14
15
16
17
18
19
20
18
19
8
21
22
23
941
5,398
6,336
1,495
901
6,194
7,632
1,615
14,170
16,342
22,461
12,114
2,217
736
1,051
52,749
1,815
512
327
9,467
12,121
8,913
999
3,574
252
1,489
200
21,767
12,368
2,297
843
969
54,586
2,142
542
305
11,291
14,280
8,040
899
3,547
319
1,403
235
27,548
28,723
13,838
83
(296)
11,531
25,156
45
25,201
52,749
14,172
109
(391)
11,928
25,818
45
25,863
54,586
Director
Director
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 101
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Notes to the consolidated financial
statements
Note 1 | Description of business
Nutrien Ltd. (collectively with its subsidiaries, “Nutrien”, “we”, “us”, “our” or “the Company”) is the world’s largest provider of
crop inputs and services. Nutrien plays a critical role in helping growers around the globe increase food production in a
sustainable manner.
The Company is a corporation organized under the laws of Canada with its registered head office located at Suite 1700, 211 19th
Street East, Saskatoon, Saskatchewan, Canada, S7K 5R6. As at December 31, 2023, the Company had assets, which include as
follows:
Segment
Description
Nutrien Ag
Solutions
(“Retail”)
Potash
Nitrogen
Phosphate
Corporate
and Others
– various retail facilities across the US, Canada, Australia and South America
– private label and proprietary crop protection products and nutritionals
– an innovative integrated digital platform for growers and crop consultants
– a financing solutions provider in support of Nutrien’s agricultural product and service sales
– 6 operations in the province of Saskatchewan
– investment in Canpotex Limited (“Canpotex”), a Canadian potash export, sales and marketing company
owned in equal shares by Nutrien and another potash producer
– 8 production facilities in North America: 4 in Alberta, 1 in Georgia, 1 in Louisiana, 1 in Ohio and 1 in Texas
– 1 large-scale operation in Trinidad
– 5 upgrade facilities in North America: 3 in Alberta, 1 in Missouri and 1 in Washington
– 50 percent investment in Profertil S.A. (“Profertil”), a nitrogen producer based in Argentina
– 2 mines and processing plants: 1 in Florida and 1 in North Carolina
– phosphate feed plants in Illinois, Missouri and Nebraska
– 1 industrial phosphoric acid plant in Ohio
– 22 percent investment in Sinofert Holdings Limited (“Sinofert”), a fertilizer supplier and distributor
in China
– corporate offices in the US and Canada and other non-operating sites
Note 2 | Basis of presentation
We prepared these consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”)
as issued by the International Accounting Standards Board (“IASB”). We have consistently applied the same accounting policies
throughout all periods presented, as if these policies had always been in effect, with the exception of the accounting standards
adopted effective January 1, 2023, as disclosed in Note 30.
Certain immaterial 2022 figures have been reclassified in the consolidated statements of cash flows.
These consolidated financial statements were authorized for issue by the Board of Directors on February 22, 2024.
Sensitivity analyses included throughout the notes should be used with caution as the changes are hypothetical and not
reflective of future performance. The sensitivities have been calculated independently of changes in other key variables. We
prepared these consolidated financial statements under the historical cost basis, except for items that IFRS requires to be
measured at fair value. Reference to n/a indicates information is not applicable.
102 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 3 | Segment information
The Company has four reportable operating segments: Nutrien Ag Solutions (“Retail”), Potash, Nitrogen and Phosphate. The
Retail segment distributes crop nutrients, crop protection products, seed and merchandise. Retail provides services directly to
growers through a network of retail locations in North America, South America and Australia. The Potash, Nitrogen and
Phosphate segments are differentiated by the chemical nutrient contained in the products that each produces.
The Executive Leadership Team (“ELT”), comprised of officers at the Executive Vice President level and above, is the Chief
Operating Decision Maker (“CODM”). The CODM uses adjusted EBITDA, calculated as below, to measure performance and
allocate resources to the operating segments. The CODM considers adjusted EBITDA to be a meaningful measure because it is
not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day
operations. In addition, it excludes the impact of impairments and other costs that are centrally managed by our corporate
function.
We determine the composition of the reportable segments based on factors including risks and returns, internal organization,
and internal reports reviewed by the CODM. We allocate certain expenses across segments based on reasonable considerations
such as production capabilities or historical trends.
2023
Retail
Potash
Nitrogen
Phosphate
Corporate
and
Others
Eliminations
Consolidated
Sales – third party
– intersegment
Sales – total
Freight, transportation and distribution
Net sales
Cost of goods sold
Gross margin
Selling expenses
General and administrative expenses
Provincial mining taxes
Share-based compensation recovery
Impairment of assets (Notes 13 and 14)
Other expenses (income)
Earnings (loss) before finance costs and
income taxes
Depreciation and amortization
EBITDA 1
Integration and restructuring related costs
Share-based compensation recovery
Impairment of assets (Notes 13 and 14)
ARO/ERL expense for non-operating sites 2
Foreign exchange loss, net of related
derivatives
Loss on Blue Chip Swaps
Adjusted EBITDA
Assets
19,542
–
19,542
–
19,542
15,112
4,430
3,375
217
–
–
465
158
215
759
974
20
–
465
–
–
–
3,735
431
4,166
407
3,759
1,396
2,363
12
13
398
–
–
(1)
1,941
463
2,404
–
–
–
–
–
–
3,804
931
4,735
528
4,207
2,828
1,379
27
21
–
–
76
(27)
1,282
572
1,854
–
–
76
–
–
–
1,459
2,404
1,930
23,056
13,571
11,466
1,975
288
2,263
270
1,993
1,760
233
6
11
–
–
233
40
(57)
294
237
–
–
233
–
–
–
470
2,438
–
–
–
–
–
–
–
–
364
–
(14)
–
348
(698)
81
(617)
29
(14)
–
152
91
92
(267)
2,818
1 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.
2 ARO/ERL refers to asset retirement obligations and accrued environmental costs.
–
(1,650)
(1,650)
(231)
(1,419)
(1,488)
69
(23)
–
–
–
–
30
62
–
62
–
–
–
–
–
–
62
(600)
29,056
–
29,056
974
28,082
19,608
8,474
3,397
626
398
(14)
774
548
2,745
2,169
4,914
49
(14)
774
152
91
92
6,058
52,749
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 103
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
2022
Sales – third party
– intersegment
Sales – total
Freight, transportation and distribution
Net sales
Cost of goods sold
Gross margin
Selling expenses
General and administrative expenses
Provincial mining taxes
Share-based compensation expense
Reversal of impairment of assets (Note 13)
Other expenses (income)
Earnings (loss) before finance costs and
income taxes
Depreciation and amortization
EBITDA
Integration and restructuring related costs
Share-based compensation expense
Reversal of impairment of assets (Note 13)
COVID-19 coronavirus pandemic
(“COVID-19”) related expenses
Foreign exchange loss, net of related
derivatives
Gain on disposal of investment
Retail
Potash
Nitrogen
Phosphate
Corporate
and
Others
Eliminations
Consolidated
21,266
84
21,350
–
21,350
16,171
5,179
3,392
200
–
–
–
29
1,558
752
2,310
2
–
–
–
–
(19)
7,600
599
8,199
300
7,899
1,400
6,499
10
9
1,149
–
–
5
5,326
443
5,769
–
–
–
–
–
–
6,755
1,293
8,048
515
7,533
4,252
3,281
28
17
–
–
–
(137)
3,373
558
3,931
–
–
–
–
–
–
2,263
357
2,620
243
2,377
1,884
493
7
13
–
–
(780)
67
1,186
188
1,374
–
–
(780)
–
–
–
–
–
–
–
–
–
–
(1)
326
–
63
–
227
(615)
71
(544)
44
63
–
8
31
–
–
(2,333)
(2,333)
(186)
(2,147)
(2,119)
(28)
(22)
–
–
–
–
13
(19)
–
(19)
–
–
–
–
–
–
37,884
–
37,884
872
37,012
21,588
15,424
3,414
565
1,149
63
(780)
204
10,809
2,012
12,821
46
63
(780)
8
31
(19)
Adjusted EBITDA
Assets
2,293
5,769
3,931
24,451
13,921
11,807
594
2,661
(398)
2,622
(19)
(876)
12,170
54,586
Retail segment product line
Sales
Crop nutrients
Dry and liquid macronutrient products including potash, nitrogen and phosphate, and
proprietary liquid micronutrient products.
Crop protection products
Various third-party supplier and proprietary products designed to maintain crop quality and
manage plant diseases, weeds and other pests.
Seed
Merchandise
Nutrien Financial
Various third-party supplier seed brands and proprietary seed product lines.
Fencing, feed supplements, livestock-related animal health products, storage and irrigation
equipment, and other products.
Financing solutions provided to US and Australia Retail branches and customers in support of
Nutrien’s agricultural product and service sales.
Services and other revenues
Product application, soil and leaf testing, crop scouting and precision agriculture services, and
water services.
104 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Segment
Products
Sales prices impacted by
Potash
– North America – primarily granular
– Offshore (international) – primarily granular
and standard
– North American prices referenced at
delivered prices (including transportation and
distribution costs)
– International prices pursuant to term and spot
contract prices (excluding transportation and
distribution costs)
Nitrogen
– Ammonia, urea and environmentally smart
– Global energy costs and supply
nitrogen (“ESN®”), and nitrogen solutions, nitrates
and sulfates
Phosphate
– Solid and liquid fertilizers, and industrial and feed
– Global prices and supplies of ammonia and sulfur
products
Retail sales by product line
Crop nutrients
Crop protection products
Seed
Merchandise
Nutrien Financial
Services and other
Nutrien Financial elimination 1
Potash sales by geography
Manufactured product
North America
Offshore 2
Nitrogen sales by product line
Manufactured product
Ammonia
Urea and ESN® 3
Solutions, nitrates and sulfates
Other nitrogen and purchased products 3
Phosphate sales by product line
Manufactured product
Fertilizer
Industrial and feed
Other phosphate and purchased products
2023
2022
8,379
6,750
2,295
1,001
322
927
(132)
19,542
2,090
2,076
4,166
1,337
1,624
1,367
407
4,735
1,264
703
296
2,263
10,060
7,067
2,112
1,019
267
966
(141)
21,350
2,785
5,414
8,199
2,834
2,268
1,996
950
8,048
1,520
763
337
2,620
1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches.
2 Relates to Canpotex, a major customer, and includes other revenue representing provisional pricing adjustments of $(394) (2022 – $(105)) (Note 28).
3 Certain immaterial 2022 figures have been reclassified.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 105
Overview
MD&A
Five-year highlights
Financial statements and notes
United States
Canada
Australia
Canpotex (Note 28)
Trinidad
Brazil
Other South America
Other
Notes
Sales – third party by
customer location
2023
2022
17,656
3,111
3,389
2,076
29
1,048
876 2
871 3
29,056
20,089
3,783
3,877
5,414
15
1,136
1,507 2
2,063 3
37,884
1 Excludes financial instruments (other than equity-accounted investees), deferred tax assets and post-employment benefit assets.
2 Other South America third-party sales includes sales to Argentina of $526 (2022 – $666).
3 Other third-party sales primarily relate to Europe of $314 (2022 – $856) and Others of $557 (2022 – $1,207).
Canpotex sales by market (%)
Latin America
Other Asian markets 1
China
India
Other markets
1 All Asian markets except China and India.
Note 4 | Nature of expenses
Purchased and produced raw materials and product for resale 1
Depreciation and amortization
Employee costs 2
Freight
Impairment (reversal of impairment) of assets (Notes 13 and 14)
Provincial mining taxes 3
Integration and restructuring related costs
Contract services
Lease expense
Fleet fuel, repairs and maintenance
Gain on disposal of investment
COVID-19 related expenses
Loss on Blue Chip Swaps
ARO/ERL non-accretion expense (Note 22)
Gain on amendments to other post-retirement pension plans
Other
Total cost of goods sold and expenses
Non-current assets 1
2023
16,001
18,987
1,069
–
661
555
48
389
37,710
2022
15,971
18,303
1,105
–
688
851
64
457
37,439
2023
2022
47
28
9
5
11
34
34
14
8
10
2023
2022
16,635
2,169
2,858
1,171
774
398
49
753
103
369
–
–
92
143
(80)
877
26,311
18,747
2,012
2,968
1,094
(780)
1,149
46
745
93
359
(19)
8
–
15
–
638
27,075
1 Significant expenses include supplies, energy, fuel, purchases of raw material (natural gas – feedstock, sulfur, ammonia and reagents) and product for resale
2
3
(crop nutrients, crop protection products and seed).
Includes salaries and wages, employee benefits, and share-based compensation.
Includes Saskatchewan potash production tax and Saskatchewan resource surcharge of $279 and $119 (2022 – $909 and $240), respectively, as required under
Saskatchewan provincial legislation.
106 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 5 | Share-based compensation
Plans
Eligibility
Granted
Vesting period
Maximum term
Settlement
Stock Options
Performance Share Units
(“PSUs”)
Officers and
eligible employees
Officers and
eligible employees
Annually
Annually
Restricted Share Units
(“RSUs”)
Officers and
eligible employees
Annually
Deferred Share Units
(“DSUs”)
Non-executive
directors
Stock Appreciation Rights
(“SARs”)/Tandem Stock
Appreciation Rights
(“TSARs”) 3
Awards no longer
granted; legacy
awards only
At the discretion
of the Board of
Directors
Awards no
longer granted;
legacy awards
only
25 percent per year over
four years
On third anniversary of
grant date based on total
shareholder return relative
to PSU peer group
(75 percent weighting) and
return on invested capital
(25 percent weighting)
On third anniversary of
grant date and not subject
to performance conditions
10 years
Shares 1
Not applicable Cash
Not applicable Cash
Fully vest upon grant
Not applicable Cash 2
25 percent per year over
four years
10 years
Cash
1 Stock options may also be settled by cash settlement or, if approved by the Company, by a broker-assisted “cashless exercise” arrangement or a “net
exercise” arrangement.
2 Directors can redeem their DSUs for cash only when they leave the Board of Directors for an amount equal to the market value of the common shares at the time
of redemption or as mandated by the Nutrien DSU Plan.
3 Holders of TSARs have the ability to choose between (a) receiving in cash the price of our shares on the date of exercise in excess of the exercise price of the right
or (b) receiving common shares by paying the exercise price of the right. Our past experience and future expectation are that substantially all TSAR holders will
elect to choose the first option.
The weighted average assumptions of stock options by year of grant that impacted current year results are as follows:
Stock options
Based on
Weighted average grant date
fair value per option
Black-Scholes-Merton option-pricing model as of the
date of the grant
Weighted average assumptions:
Exercise price per option
Expected annual dividend
yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Quoted market closing price of common shares on
the last trading day immediately preceding the date
of the grant
Annualized dividend rate as of the date of the grant
Historical volatility of Nutrien’s shares over a period
commensurate with the expected life of the grant
Zero-coupon government issues implied yield available
on equivalent remaining term at the time of the grant
Average expected life of
options (years)
Historical experience
Year of grant
2023
25.67
2022
20.49
78.95
77.50
2.49
33
3.84
8.5
2.45
30
2.00
8.5
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 107
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Units granted
in 2023
Units outstanding
as at December 31, 2023
2023
2022
Compensation expense
Stock options
PSUs
RSUs
DSUs
SARs/TSARs
301,168
517,219
582,659
34,075
–
3,248,306
1,732,785
1,576,486
401,296
176,284
Note 6 | Other expenses (income)
Integration and restructuring related costs
Foreign exchange loss, net of related derivatives
Earnings of equity-accounted investees
Bad debt expense
COVID-19 related expenses
Gain on disposal of investment
Project feasibility costs
Customer prepayment costs
Legal expenses
Consulting expenses
Employee special recognition award
Loss on Blue Chip Swaps
ARO/ERL expense for non-operating sites (Note 22)
Gain on amendments to other post-retirement pension plans
Other expenses
8
(39)
23
(4)
(2)
(14)
2023
49
91
(101)
55
–
–
86
47
34
21
–
92
152
(80)
102
548
11
13
33
2
4
63
2022
46
31
(247)
12
8
(19)
79
42
21
29
61
–
–
–
141
204
The Central Bank of Argentina maintains certain currency controls that limit our ability to remit cash from Argentina. Blue Chip
Swaps are trade transactions that effectively allow companies to transfer US dollars out of Argentina. Through this mechanism,
we incurred a loss of $92 from the purchase of securities denominated in Argentine peso and corresponding sales in US dollars
during 2023. The loss is a result of the significant divergence between the Blue Chip Swap market exchange rate and the official
Argentinian Central Bank rate.
Note 7 | Finance costs
Interest expense
Short-term debt
Long-term debt
Lease liabilities
Total interest expense
Unwinding of discount on asset retirement obligations (Note 22)
Interest on net defined benefit pension and other post-retirement plan obligations (Note 21)
Borrowing costs capitalized to property, plant and equipment
Interest income
Other finance costs
2023
2022
303
446
48
797
33
5
(71)
(35)
64
793
153
333
35
521
29
8
(37)
(25)
67
563
Borrowing costs capitalized to property, plant and equipment in 2023 were calculated by applying an average capitalization rate
of 5.4 percent (2022 – 4.1 percent) to expenditures on qualifying assets.
108 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 8 | Income taxes
Current income tax
Tax expense for current year
Adjustments in respect of prior years
Total current income tax expense
Deferred income tax
Origination and reversal of temporary differences
Swiss Tax Reform adjustment
Adjustments in respect of prior years
Change in recognition of tax losses and deductible temporary differences
Total deferred income tax expense
Income tax expense included in net earnings
2023
2022
637
26
663
5
(134)
31
105
7
670
2,314
63
2,377
215
–
(41)
8
182
2,559
In 2023, we recorded a deferred tax asset of $134 related to an increase in the tax basis of our Swiss assets as a result of changes
to our Switzerland tax declarations.
We operate in a specialized industry and in several tax jurisdictions; as a result, our earnings are subject to various rates
of taxation.
The provision for income taxes differs from the amount that would have resulted from applying the Canadian statutory income
tax rates to earnings before income taxes as follows:
Earnings (loss) before income taxes
Canada
United States
Australia
Trinidad
Other
Canadian federal and provincial statutory income tax rate (%)
Income tax at statutory rates
Adjusted for the effect of:
Impact of foreign tax rates
Swiss Tax Reform adjustment
Non-taxable income
Production-related deductions
Current year losses for which no deferred tax asset is recognized
Change in recognition of tax losses and deductible temporary differences
Tax authority examinations
Non-deductible expenses
Withholding taxes
Other
Income tax expense included in net earnings
2023
2022
1,427
976
161
(75)
(537)
1,952
27
527
(139)
(134)
(67)
(54)
314
105
62
25
20
11
670
5,707
3,447
263
487
342
10,246
27
2,766
(132)
–
(98)
(51)
–
8
22
16
18
10
2,559
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 109
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Deferred income taxes
Deferred income tax assets
Asset retirement obligations and accrued
environmental costs
Tax loss and other carryforwards
Lease liabilities
Inventories
Pension and other post-retirement benefit liabilities
Long-term debt
Payables and accrued charges
Receivables
Other assets
Deferred income tax liabilities
Property, plant and equipment
Goodwill and intangible assets
Other liabilities
Deferred income tax
(assets) liabilities
Deferred income tax (recovery)
expense recognized in net earnings
2023
2022
2023
2022
(400)
(347)
(307)
(108)
(108)
(99)
(96)
(50)
(1)
4,410
173
30
3,097
(319)
(396)
(298)
(155)
(151)
(117)
(98)
(48)
(1)
4,305
347
30
3,099
(17)
52
(8)
47
50
18
2
(2)
–
40
(168)
(7)
7
35
(93)
(151)
(30)
(1)
21
(84)
(4)
–
545
(53)
(3)
182
Amounts and expiry dates of unused tax losses and unused tax credits as at December 31, 2023, were:
Unused federal operating losses
Unused federal capital losses
Amount
2,056
683
Expiry date
2024 – Indefinite
Indefinite
The unused tax losses and credits with no expiry dates can be carried forward indefinitely.
As at December 31, 2023, we had $1,532 of federal tax losses for which we did not recognize deferred tax assets.
We have determined that it is probable that all recognized deferred tax assets will be realized through a combination of future
reversals of temporary differences and taxable income.
We did not recognize deferred tax liabilities related to temporary differences associated with investments in subsidiaries and
equity-accounted investees amounting to $7,010 as at December 31, 2023 (2022 – $13,060).
Note 9 | Net earnings per share
Weighted average number of common shares
Dilutive effect of stock options
Weighted average number of diluted common shares
2023
2022
496,381,000
613,000
538,475,000
1,535,000
496,994,000
540,010,000
Options excluded from the calculation of diluted net earnings per share due to the option exercise prices being greater than the
average market price of common shares were as follows:
Number of options excluded
110 Nutrien Annual Report 2023
2023
2022
821,763
567,409
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 10 | Financial instruments and related
risk management
Our ELT, along with the Board of Directors (including Board committees), is responsible for monitoring our risk exposures and
managing our policies to address these risks. Our strategic and risk management processes are integrated to ensure we
understand the benefit from the relationship between strategy, risk and value creation. Outlined below are our risk
management strategies we have developed to mitigate the financial market risks that we are exposed to.
Credit risks
Risk management strategies
Receivables from
customers
– establish credit approval policies and procedures for new and existing customers
– extend credit to qualified customers through
– review of credit agency reports, financial statements and/or credit references, as available
– review of existing customer accounts every 12 to 24 months based on the credit limit amounts
– evaluation of customer and country risk for international customers
– establish credit period:
– 15 and 30 days for wholesale fertilizer customers
– 30 days for industrial and feed customers
– 30 to 360 days for Retail customers, including Nutrien Financial
– up to 180 days for select export sales customers, including Canpotex
– transact on a cash basis with certain customers who may not meet specified benchmark
creditworthiness or cannot provide other evidence of ability to pay
– execute agency arrangements with financial institutions or other partners with which we have only a
limited recourse involvement
– sell receivables to financial institutions which substantially transfer the risks and rewards
– set eligibility requirements for Nutrien Financial to limit the risk of the receivables
– may require security over certain crop or livestock inventories
– set up provision using the lifetime expected credit loss method considering all possible default events
over the expected life of a financial instrument. Receivables are grouped based on days past due and/or
customer credit risk profile. Estimated losses on receivables are based on known troubled accounts and
historical experience of losses incurred. Receivables are considered to be in default and are written off
against the allowance when it is probable that all remaining contractual payments due will not be
collected in accordance with the terms of the agreement.
Cash and cash
equivalents and
other receivables
– require acceptable minimum counterparty credit ratings
– limit counterparty or credit exposure
– select counterparties with investment-grade quality
Aging of receivables (%) as at December 31:
Current
30 days or less past due
31 – 90 days past due
Greater than 90 days past due
2023
Retail
(excluding
Nutrien
Financial)
78
6
4
12
100
Retail
(Nutrien
Financial)
78
13
4
5
100
Potash,
Nitrogen and
Phosphate
Retail
(Nutrien
Financial)
89
11
–
–
100
83
10
3
4
100
2022
Retail
(excluding
Nutrien
Financial)
84
9
4
3
100
Potash,
Nitrogen and
Phosphate
97
3
–
–
100
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 111
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Maximum exposure to credit risk as at December 31:
Cash and cash equivalents
Receivables (excluding income tax receivable)
2023
941
5,103
6,044
2022
901
6,050
6,951
Liquidity risk
Risk management strategies
Access to cash
– establish an external borrowing policy to maintain sufficient liquid financial resources to fund our
operations and meet our commitments and obligations in a cost-effective manner
– maintain an optimal capital structure
– maintain investment-grade credit ratings that provide ease of access to the debt capital and
commercial paper markets
– maintain sufficient short-term credit availability
– uphold long-term relationships with a sufficient number of high-quality and diverse lenders
– enter into financial arrangements (e.g., Blue Chip Swaps) to remit cash from certain
foreign jurisdictions
Refer to Note 17 for our available credit facilities.
The following maturity analysis of our financial liabilities and gross settled derivative contracts (for which the cash flows are
settled simultaneously) is based on the expected undiscounted contractual cash flows from the date of the consolidated
balance sheets to the contractual maturity date.
2023
Short-term debt 1
Payables and accrued charges 2
Long-term debt, including current portion 1
Lease liabilities, including current portion 1
Derivatives
Carrying amount
of liability as at
December 31
Contractual
cash
flows
1,815
9,024
9,425
1,326
16
1,815
9,024
15,339
1,525
16
Within
1 year
1,815
9,024
966
368
16
1 to 3
years
–
–
2,324
484
–
3 to 5
years
–
–
1,556
222
–
Over 5
years
–
–
10,493
451
–
21,606
27,719
12,189
2,808
1,778
10,944
1 Contractual cash flows include contractual interest payments related to debt obligations and lease liabilities. Interest rates on debt with variable rates are based
on the prevailing rates as at December 31, 2023.
2 Excludes non-financial liabilities and includes payables of approximately $2.1 billion related to our prepaid inventory to secure product discounts. We consider
these payables to be part of our working capital. For these payables, we participated in arrangements where the vendors sold their right to receive payment to
financial institutions without extending the original payment terms. These payables were paid in January 2024.
112 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Market risks
Type
Risk management strategies
Interest rate
Short-term and
long-term debt
– use a portfolio of fixed and floating rate instruments
– align current and long-term assets with demand and fixed-
Price
Natural gas
derivative
instruments
term debt
– monitor the effects of market changes in interest rates
– use interest rate swaps, if desired
– diversify our forecast gas volume requirements, including a
portion of annual requirements purchased at spot market
prices, a portion at fixed prices (up to 10 years) and a portion
indexed to the market price of ammonia
– acquire a reliable supply of natural gas feedstock and fuel on a
location-adjusted, cost-competitive basis and hold firm
pipeline transportation to our operating sites
Price
Foreign
exchange
Investment at
fair value
– ensure the security of principal amounts invested
– provide for an adequate degree of liquidity
– achieve a satisfactory return
– execute foreign currency derivative contracts within certain
prescribed limits for both actual and forecasted expenditures
to manage the impact to cash flows and earnings, including
those related to our equity-accounted investees, that could
occur from a reasonably possible strengthening or weakening
of the US dollar
We do not believe
we have material
exposure to
interest, price or
foreign exchange
risk on our
financial
instruments as at
December 31,
2023 and 2022.
The fair value of our net foreign exchange currency derivative assets (liabilities) as at December 31, 2023 was $11 (2022 – $(18)).
The following table presents the significant foreign currency derivatives that existed as at December 31:
Sell/buy
Notional
Maturities
Average
contract
rate
Notional
Maturities
Average
contract
rate
2023
2022
Derivatives not designated as hedges
Forwards
USD/Canadian dollars (“CAD”)
Australian dollars/USD
Brazilian real/USD
Derivatives designated as hedges
Forwards
USD/CAD
435
86
94
2024
2024
2024
1.3207
1.5269
4.8688
473
133
374
2023
2023
2023
1.3584
1.5010
5.6892
601
2024
1.3565
487
2023
1.3255
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 113
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Fair value
Financial instruments included in the consolidated balance sheets are measured either at fair value or amortized cost.
Financial instruments at fair value
Fair value method and associated level within the fair value hierarchy
Cash and cash equivalents
Carrying amount (approximation to fair value assumed due to short-term nature)
Equity securities
Debt securities
Foreign currency derivatives not
traded in an active market
Foreign exchange forward contracts,
swaps and options, and natural gas
swaps not traded in an active market
Closing bid price of the common shares (Level 1) as at the balance sheet date
Closing bid price of the debt or other instruments with similar terms and credit risk
(Level 2) as at the balance sheet date
Quoted forward exchange rates (Level 2) as at the balance sheet date
Based on a discounted cash flow (“DCF”) model. Inputs included contractual cash
flows based on prices for natural gas futures contracts, fixed prices and notional
volumes specified by the swap contracts, the time value of money, liquidity risk, our
own credit risk (related to instruments in a liability position) and counterparty credit
risk (related to instruments in an asset position). Futures contract prices used as
inputs in the model were supported by prices quoted in an active market and
therefore categorized in Level 2.
Financial instruments at amortized cost
Fair value method
Receivables, short-term debt, and
payables and accrued charges
Carrying amount (approximation to fair value assumed due to short-term nature)
Long-term debt
Quoted market prices (Level 1 or 2 depending on the market liquidity of the debt)
Other long-term debt instruments
Carrying amount (approximation to fair value)
The following table presents our fair value hierarchy for financial instruments carried at fair value on a recurring basis or
measured at amortized cost and require fair value disclosure. The table does not include fair value information for financial
instruments that are measured using their carrying amount as a reasonable approximation of fair value.
Financial assets (liabilities) measured at
Fair value on a recurring basis 1
Derivative instrument assets
Other current financial assets –
marketable securities 2
Investments at fair value through other
comprehensive income (“FVTOCI”)
(Note 15)
Investments at fair value through profit
or loss (“FVTPL”) (Note 15)
Derivative instrument liabilities
Amortized cost
Investments at amortized cost (Note 15)
Current portion of long-term debt
Senior notes and debentures
Fixed and floating rate debt
Long-term debt
Senior notes and debentures
Fixed and floating rate debt
2023
2022
Carrying
amount
Level 1
Level 2
Level 3
Carrying
amount
Level 1
Level 2
Level 3
20
–
20
173
35
138
190
180
–
45
(16)
–
–
–
(16)
19
16
–
(499)
(13)
–
–
(502)
(13)
(8,884)
(29)
(3,110)
–
(5,462)
(29)
–
–
10
45
–
–
–
–
–
–
7
–
7
148
19
129
200
190
–
44
(35)
–
–
–
–
(500)
(42)
(493)
–
–
(35)
–
–
(42)
(7,910)
(130)
(3,581)
–
(3,656)
(130)
–
–
10
44
–
–
–
–
–
–
1 During 2023 and 2022, there were no transfers between levels for financial instruments measured at fair value on a recurring basis. Our policy is to recognize
transfers at the end of the reporting period.
2 Marketable securities consist of equity and debt securities.
114 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 11 | Receivables
Segment
2023
2022
Receivables from customers
Third parties
Related party – Canpotex
Less allowance for expected credit losses of receivables
Retail (Nutrien Financial) 1
Retail
Potash, Nitrogen, Phosphate
Potash (Note 28)
from customers
Rebates
Income taxes (Note 8)
Other receivables
2,943
1,097
577
162
(111)
4,668
198
295
237
5,398
2,705
1,293
827
866
(95)
5,596
172
144
282
6,194
1
Includes $2,578 of very low risk of default and $365 of low risk of default (2022 – $2,260 of very low risk of default and $445 of low risk of default).
Qualifying receivables from customers financed by Nutrien Financial represent high-quality receivables from customers that
have been rated very low to low risk of default among Retail’s receivables from customers.
Customer credit with a financial institution of $431 as at December 31, 2023, related to our agency agreement, is not recognized
in our consolidated balance sheets. Through the agency agreement, we only have a limited recourse involvement to the extent
of an indemnification of the financial institution to a maximum of 5 percent (2022 – 5 percent) of the qualified customer loans.
Historical indemnification losses on this arrangement have been negligible, and the average aging of the customer loans with
the financial institution is current.
Note 12 | Inventories
Product purchased for resale
Finished products
Intermediate products
Raw materials
Materials and supplies
By segment
Retail
Potash
Nitrogen
Phosphate
2023
4,941
351
160
299
585
6,336
2023
5,041
371
493
431
6,336
2022
5,885
612
184
425
526
7,632
2022
6,035
398
706
493
7,632
Inventories expensed to cost of goods sold during the year were $19,391 (2022 – $21,371).
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 115
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 13 | Property, plant and equipment
Land and
improvements
Buildings and
improvements
Machinery
and
equipment
Mine
development
costs
Assets under
construction
Total
Useful life range (years)
1 – 85
1 – 70
1 – 80
1 – 60
Carrying amount – December 31, 2022
Acquisitions (Note 25)
Additions
Additions – Right-of-use (“ROU”) assets
Disposals
Transfers
Foreign currency translation and other
Depreciation
Depreciation – ROU assets
Impairment
Carrying amount – December 31, 2023
Balance – December 31, 2023 is
composed of:
Cost
Accumulated depreciation
and impairments
1,201
–
1
1
(6)
26
12
(39)
(2)
(19)
1,175
6,340
2
5
70
(7)
188
32
(184)
(60)
(10)
6,376
11,017
5
37
338
(37)
1,401
94
(1,054)
(326)
(148)
11,327
1,108
–
–
–
–
237
3
(138)
–
(95)
1,115
n/a
2,101
–
2,422
–
(1)
(1,852)
(165)
–
–
(37)
21,767
7
2,465
409
(51)
–
(24)
(1,415)
(388)
(309)
2,468
22,461
1,631
9,050
23,237
2,938
2,468
39,324
(456)
(2,674)
(11,910)
(1,823)
–
(16,863)
Carrying amount – December 31, 2023
1,175
6,376
11,327
1,115
2,468
22,461
Balance – December 31, 2023 is
composed of:
Owned property, plant and equipment
ROU assets
Carrying amount – December 31, 2023
Carrying amount – December 31, 2021
Acquisitions (Note 25)
Additions
Additions – ROU assets
Disposals
Transfers
Foreign currency translation and other
Depreciation
Depreciation – ROU assets
Reversal of impairment
Carrying amount – December 31, 2022
Balance – December 31, 2022 is
composed of:
Cost
Accumulated depreciation and
impairments
1,145
30
1,175
1,073
12
17
–
(9)
35
5
(35)
(2)
105
1,201
5,980
396
6,376
6,305
40
9
51
(13)
163
2
(185)
(58)
26
6,340
10,486
841
11,327
10,221
23
25
230
(24)
1,281
55
(1,006)
(279)
491
11,017
1,115
–
1,115
853
–
–
–
–
170
30
(94)
–
149
2,468
–
2,468
1,564
65
2,202
–
–
(1,649)
(90)
–
–
9
21,194
1,267
22,461
20,016
140
2,253
281
(46)
–
2
(1,320)
(339)
780
1,108
2,101
21,767
1,605
8,795
22,023
2,699
2,101
37,223
(404)
(2,455)
(11,006)
(1,591)
–
(15,456)
Carrying amount – December 31, 2022
1,201
6,340
11,017
1,108
2,101
21,767
Balance – December 31, 2022 is
composed of:
Owned property, plant and equipment
ROU assets
Carrying amount – December 31, 2022
1,173
28
1,201
5,956
384
6,340
10,267
750
11,017
1,108
–
1,108
2,101
–
2,101
20,605
1,162
21,767
116 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Depreciation of property, plant and equipment was included in the following:
Freight, transportation and distribution
Cost of goods sold
Selling expenses
General and administrative expenses
Depreciation recorded in earnings
Depreciation recorded in inventory
2023
165
1,157
453
48
1,823
145
2022
148
1,024
424
42
1,638
151
Impairments and impairment reversals
For each cash generating unit (“CGU”) or groups of CGUs in which we complete an impairment analysis, the recoverable amount
estimate used the following key assumptions: our forecasted EBITDA, discount rate and long-term growth rate. For our
Phosphate CGUs, we also estimate the end of expected mine life. We used key assumptions that were based on historical data
and estimates of future results from internal sources, independent third-party price benchmarks, and mineral reserve technical
reports (relating to Phosphate CGUs), as well as industry and market information.
Phosphate
In 2023, we identified an impairment trigger for our Phosphate CGUs, White Springs and Aurora, primarily as a result of the
decrease in our forecasted phosphate margins. We completed our impairment analysis for these CGUs.
Phosphate CGU
Impairment assessment date
Recoverable amount ($)
Carrying amount before impairment
loss ($)
Pre-tax impairment loss ($)
Valuation methodology
White Springs
June 30, 2023
504
737
233
Value in use (“VIU”)
Valuation technique
Pre-tax DCF to end of expected mine life
Aurora
June 30, 2023
2,000
1,660
–
Fair value less costs of disposal
(“FVLCD”), a Level 3 measurement
Five-year DCF plus terminal year to end
of mine life
In 2022, we completed an impairment analysis at our White Springs and Aurora CGUs as a result of revised pricing forecasts to
reflect the macroeconomic environment at the time. We completed our impairment analysis for these CGUs.
Phosphate CGU
Impairment reversal date
Recoverable amount ($)
Carrying amount before impairment
reversal ($)
Pre-tax impairment reversal (net of
depreciation) ($) 1
Valuation methodology
Valuation technique
White Springs
September 30, 2022
770
425
Aurora
June 30, 2022
2,900
1,200
330
VIU
Pre-tax DCF to end of expected mine life
450
FVLCD
Five-year DCF plus terminal year to end
of mine life
1
Full reversal of the previously recorded impairment losses relating to property, plant and equipment at White Springs in 2017 and 2020 of $250 and $215,
respectively, and Aurora in 2020 of $545.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 117
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Key assumptions 1
End of mine life (proven and probable reserves) (year) 2
Long-term growth rate (%)
Pre-tax discount rate (%)
Post-tax discount rate (%)
Forecasted EBITDA 3 ($)
White Springs
2023
2032
n/a
15.6
12.0
720
2022
2030
n/a
15.2
12.0
980
Aurora
2022
2050
2.0
n/a
10.4
3,090
1 At impairment loss (reversal) date.
2 The White Springs CGU has a shorter expected mine life and is therefore more sensitive to changes in short- and medium-term forecasted phosphate margins.
3
Forecasted EBITDA to 2028 (2022 – Forecasted EBITDA to 2027).
Sensitivities
The following table highlights sensitivities to the recoverable amounts of our Phosphate CGUs, which could result in additional
impairment losses or reversals of the previously recorded losses (relating to the White Springs CGU).
Key assumptions as at June 30, 2023
Change in assumption
White Springs
Aurora
Change to recoverable amount ($)
Long-term growth rate (%)
Pre-tax discount rate (%)
Post-tax discount rate (%)
Forecasted EBITDA over forecast period ($)
Nitrogen
+ / - 1.0 percent
+ / - 1.0 percent
+ / - 1.0 percent
+ / - 5.0 percent
n/a
- / +
n/a
+ / -
n/a
20
n/a
40
+ / -
n/a
- / +
+ / -
110
n/a
190
220
In 2023, we identified an impairment trigger for our Trinidad CGU, part of our Nitrogen segment, due to a new natural gas
contract and the resulting outlook for higher expected natural gas costs and constrained near-term availability. We expect
improved natural gas availability in Trinidad as the development of additional natural gas fields is anticipated to add new
natural gas supply starting in 2026.
December 31, 2023
Recoverable amount ($)
Carrying amount before impairment loss ($)
Pre-tax impairment loss ($)
Valuation methodology
Valuation technique
Key assumptions
Long-term growth rate (%)
Post-tax discount rate 1 (%)
Forecasted EBITDA 2,3 ($)
Trinidad
676
752
76
FVLCD, a Level 3 measurement
Five-year DCF plus a terminal value
2.3
13.0
1,145
1 Discount rate used in the previous measurement in 2020 was 12.6 percent.
2
3
First five years of the forecast period.
Includes key assumptions relating to net selling price based on forecasted future natural gas contracting and availability.
Sensitivities
The following table highlights sensitivities to the recoverable amount of our Trinidad CGU, which could result in additional
impairment losses or reversals of the previously recorded losses.
Key assumptions as at December 31, 2023
Long-term growth rate (%)
Post-tax discount rate (%)
Forecasted EBITDA over forecast period ($)
Change in assumption
+ / - 1.0 percent
+ / - 1.0 percent
+ / - 5.0 percent
Change to recoverable
amount ($)
+ / -
- / +
+ / -
55
95
100
118 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 14 | Goodwill and intangible assets
Useful life range (years)
Carrying amount – December 31, 2022
Acquisitions (Note 25)
Additions – internally developed
Foreign currency translation and other
Amortization 3
Impairment
Carrying amount – December 31, 2023
Balance – December 31, 2023 is composed of:
Cost
Accumulated amortization and impairment
Carrying amount – December 31, 2023
Carrying amount – December 31, 2021
Acquisitions (Note 25)
Additions – internally developed
Foreign currency translation and other
Disposals
Amortization 3
Carrying amount – December 31, 2022
Balance – December 31, 2022 is composed of:
Cost
Accumulated amortization and impairment
Carrying amount – December 31, 2022
Intangible assets
Goodwill
Customer
relationships 1
Technology
Trade
names
Other
Total
n/a
12,368
126
–
42
–
(422)
12,114
12,542
(428)
12,114
12,220
200
–
(52)
–
–
12,368
12,375
(7)
12,368
5 – 15
2 – 20
3 – 15 2
1 – 30
1,229
30
–
9
(164)
(43)
1,061
2,046
(985)
1,061
1,350
59
–
(13)
(1)
(166)
1,229
2,001
(772)
1,229
702
–
206
49
(114)
–
843
95
7
–
4
(8)
–
98
271
1
–
(1)
(56)
–
2,297
38
206
61
(342)
(43)
215
2,217
1,263
(420)
160
(62)
656
(441)
4,125
(1,908)
843
595
–
216
14
(1)
(122)
702
98
80
22
–
1
–
(8)
95
215
2,217
315
23
6
(1)
–
(72)
2,340
104
222
1
(2)
(368)
271
2,297
1,028
(326)
150
(55)
649
(378)
3,828
(1,531)
702
95
271
2,297
1 The average remaining amortization period of customer relationships as at December 31, 2023, was approximately 3 years.
2 Certain trade names have indefinite useful lives as there are no regulatory, legal, contractual, cooperative, economic or other factors that limit their useful lives.
3 Amortization of $279 was included in selling expenses during the year ended December 31, 2023 (2022 – $302).
Goodwill impairment testing
Goodwill by CGU or group of CGUs
Retail – North America
Retail – International 1
Potash
Nitrogen
1
Includes Retail – South America group of CGUs, which had goodwill of nil as at December 31, 2023 (2022 – $348).
2023
6,981
590
154
4,389
2022
6,898
927
154
4,389
12,114
12,368
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 119
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
In testing for impairment of goodwill, we calculate the recoverable amount for a CGU or groups of CGUs containing goodwill. We
used the FVLCD methodology based on after-tax discounted cash flows (five-year projections plus a terminal value with the
exception of the Retail – South America group of CGUs, which used a 10-year projection plus a terminal value) and incorporated
assumptions an independent market participant would apply, including considerations related to climate-change initiatives. We
adjusted discount rates for each CGU or group of CGUs for the risk associated with achieving our forecasts and for the country
risk premium in which we expect to generate cash flows. FVLCD is a Level 3 measurement. We use our market capitalization
(where applicable) and comparative market multiples to ensure discounted cash flow results are reasonable.
The key assumptions with the greatest influence on the calculation of the recoverable amounts are the discount rates, terminal
growth rates and forecasted EBITDA. The key forecast assumptions were based on historical data and our estimates of future
results from internal sources considering industry and market information.
In 2023, we revised our forecasted EBITDA for the Retail – South America group of CGUs, which triggered an impairment analysis.
Due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher interest rates, we
lowered our product margin expectations and deferred certain of our planned strategic investments. As a result, this reduced
our forecasted EBITDA and growth. Therefore, we recorded the following impairment:
Retail – South America group of CGUs
Recoverable amount
Carrying amount before impairment loss
Impairment recognized relating to:
Goodwill
Intangible assets
June 30, 2023
1,031
1,496
422
43
The following table highlights sensitivities to the Retail – South America group of CGUs recoverable amount, which could have
resulted in additional impairment against the carrying amount of intangible assets and property, plant and equipment.
Key assumptions as at June 30, 2023
Terminal growth rate (%)
Discount rate (%)
Forecasted EBITDA over forecast period ($)
Key assumption
Change in
key assumption
Decrease to
recoverable amount ($)
6.0
16.6
4,300
- 1.0 percent
+ 1.0 percent
- 5.0 percent
50
120
100
1 The discount rate used in the previous measurement was 16.0 percent, which was included as part of our Retail – International group of CGUs.
We performed our annual impairment test on goodwill on the remaining CGUs or group of CGUs and did not identify any further
impairment; however, the recoverable amount for the Retail – North America group of CGUs did not substantially exceed its
carrying amount. The Retail – North America group of CGUs recoverable amount exceeds its carrying amount by $570. Goodwill
is more susceptible to impairment risk if there is an increase in the discount rate or a deterioration in business operating results
or economic conditions and actual results do not meet our forecasts. A reduction in the terminal growth rate, an increase in the
discount rate or a decrease in forecasted EBITDA could cause impairment in the future as shown in the table below.
2023 Annual impairment testing
Terminal growth rate (%)
Discount rate 1 (%)
Forecasted EBITDA over forecast period ($)
1 The discount rate used in the previous measurement was 8.5 percent.
Key assumption
used in impairment model
Change required for carrying
amount to equal recoverable amount
2.5
8.6
8,040
0.4 percent decrease
0.2 percent increase
3.0 percent decrease
120 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
The following table indicates the key assumptions used in testing the remaining groups of CGUs:
Retail – International 1
Potash
Nitrogen
Terminal growth rate (%)
Discount rate (%)
2023
2022
2023
2022
2.1
2.5
2.3
2.0 – 6.0
2.5
2.0
9.0
7.6
8.3
8.9 – 16.0
8.3
9.3
1 The discount rates reflect the country risk premium and size for our international groups of CGUs. The terminal growth rate and discount rate ranges in 2022
included our Retail – South America group of CGUs, which are no longer included in 2023 as goodwill for this group of CGUs is nil.
Note 15 | Investments
Name
Principal activity
Proportion of
ownership interest
and voting rights
held (%)
Carrying amount
2023
2022
2023
2022 1
Principal place
of business and
incorporation
Nitrogen producer
Marketing and
logistics of potash
Argentina
Canada
50
50
50
50
Fertilizer supplier and
distributor
China/Bermuda
22
22
Equity-accounted investees
Profertil
Canpotex
Other associates and joint
ventures
Total equity-accounted investees
Investments at FVTOCI
Sinofert
Other
Total investments at FVTOCI
Investments at FVTPL
Other
Total investments at FVTPL
Investments at amortized cost
Other
Total investments at amortized cost
Total investments
1 Certain immaterial 2022 figures have been reclassified.
340
–
142
482
180
10
190
45
45
19
19
450
–
149
599
190
10
200
44
44
–
–
736
843
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 121
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
We continuously assess our ability to exercise significant influence or joint control over our investments. Our 22 percent
ownership in Sinofert does not constitute significant influence as we do not have any representation on the board of directors of
Sinofert. We elected to account for our investment in Sinofert as FVTOCI as it is held for strategic purposes.
Summarized financial information of Profertil 1
For the years ended December 31
Sales
Depreciation and amortization
Interest expense
Interest income
Income tax expense
Net earnings and total comprehensive income
Proportionate share of Profertil earnings
Elimination of unrealized profit
Total proportionate share of Profertil earnings
Dividends received from Profertil
As at December 31
Current assets 2
Non-current assets
Current liabilities 3
Non-current liabilities 4
Net assets of Profertil
Proportionate share of net assets of Profertil
Elimination of unrealized profit
Carrying amount of interest in Profertil
2023
762
5
10
170
166
178
89
1
90
199
2023
355
658
1,013
143
186
329
684
342
(2)
340
2022
1,096
5
4
136
277
466
233
–
233
57
2022
835
589
1,424
297
221
518
906
453
(3)
450
1 Summarized financial information of Profertil, which represents the amounts included in its own financial statements, adjusted for fair value adjustments at
acquisition and differences in accounting policies.
Includes cash and cash equivalents of $204 (2022 – $585).
Includes current financial liabilities (excluding trade and other payables and provisions) of $21 (2022 – $27).
Includes non-current financial liabilities (excluding trade and other payables and provisions) of nil (2022 – $23).
2
3
4
Future conditions related to Profertil may be affected by political, economic and social instability. We are exposed to foreign
exchange risk related to fluctuations in the Argentine peso against the US dollar and currency controls, which may restrict our
ability to repatriate dividends from Profertil.
122 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 16 | Other assets
Deferred income tax assets (Note 8)
Ammonia catalysts 1
Long-term income tax receivable (Note 8)
Accrued pension benefit assets (Note 21)
Other
1 Net of accumulated amortization of $99 (2022 – $94).
Note 17 | Short-term debt
Credit facilities
Unsecured revolving term credit facility
Other unsecured credit facilities
South America 1
Australia
Other
Commercial paper 2
Other short-term debt
2023
477
113
91
138
232
1,051
2022
448
104
54
157
206
969
Rate of interest (%)
2023
2022
n/a
5.5 – 12.2
5.3
4.8
5.5 – 5.9
–
219
221
21
1,175
179
1,815
500
453
190
9
783
207
2,142
1 Our credit facilities are either denominated in local currency or US dollars. The range of interest rates for South America excludes our Argentina facilities
denominated in local currency with interest rates ranging from 102.5 percent to 107.0 percent. The balance of these Argentina facilities as at December 31, 2023
was $18.
2 We use our $4,500 commercial paper program for our short-term cash requirements. The amount available under the commercial paper program is limited to the
availability of backup funds under the $4,500 unsecured revolving term credit facility and excess cash invested in highly liquid securities.
Credit facility limits 1
Unsecured revolving term facility 2
Unsecured revolving term facility 3
Uncommitted revolving demand facility
Other credit facilities 4
As at December 31, 2023
4,500
1,500
1,000
1,320
1 Our credit facilities are renegotiated periodically.
2 Matures September 14, 2027, subject to extension at the request of Nutrien provided that the resulting maturity date may not exceed five years from the date
of request.
In 2023, we extended the term of our unsecured revolving term credit facility to September 10, 2024 and reduced the facility limit from $2,000 to $1,500.
3
4 Total facility limit amounts include some facilities with maturities in excess of one year.
Principal covenants and events of default under the unsecured revolving term credit facilities include a debt to capital ratio
(refer to Note 24) and other customary events of default and covenant provisions. Non-compliance with such covenants could
result in accelerated repayment and/or termination of the credit facility. We were in compliance with all covenants as at
December 31, 2023.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 123
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 18 | Long-term debt
Senior notes 1
Rate of interest (%)
Maturity
2023
2022
1.900
5.900
3.000
5.950
4.000
4.900
4.200
2.950
4.125
7.125
5.875
5.625
6.125
4.900
5.250
5.000
3.950
5.800
7.800
Various
n/a
May 13, 2023
November 7, 2024
April 1, 2025
November 7, 2025
December 15, 2026
March 27, 2028
April 1, 2029
May 13, 2030
March 15, 2035
May 23, 2036
December 1, 2036
December 1, 2040
January 15, 2041
June 1, 2043
January 15, 2045
April 1, 2049
May 13, 2050
March 27, 2053
February 1, 2027
Various
Various
–
500
500
500
500
750
750
500
450
212
500
500
401
500
489
750
500
750
120
42
–
9,214
294
(83)
9,425
(512)
8,913
500
500
500
500
500
–
750
500
450
212
500
500
401
500
489
750
500
–
120
165
7
8,344
310
(72)
8,582
(542)
8,040
Debentures 1
Other credit facilities 2
Other long-term debt
Add net unamortized fair value adjustments
Less net unamortized debt issue costs
Less current maturities
1 Each series of senior notes and debentures is unsecured and has no sinking fund requirements prior to maturity. Each series is redeemable and has various
provisions that allow redemption prior to maturity, at our option, at specified prices.
2 Other credit facilities are unsecured and consist of South America facilities with debt of $40 (2022 – $162) and an interest rate of 2.3 percent and other facilities
with debt of $2 (2022 – $3) and an interest rate of 4.0 percent.
We are subject to certain customary covenants including limitation on liens, merger and change of control covenants, and
customary events of default. As calculated in Note 24, we were in compliance with these covenants as at December 31, 2023.
124 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
The following is a summary of changes in liabilities arising from financing activities:
Short-term
debt
Long-term
debt
Lease
liabilities
Balance – December 31, 2022
Cash flows (cash inflows and outflows presented on a net basis)
Additions and other adjustments to ROU liabilities
Foreign currency translation and other non-cash changes
Balance – December 31, 2023
Balance – December 31, 2021
Cash flows (cash inflows and outflows presented on a net basis)
Additions and other adjustments to ROU liabilities
Foreign currency translation and other non-cash changes
Balance – December 31, 2022
Note 19 | Lease liabilities
2,142
(458)
–
131
1,815
1,560
529
–
53
2,142
8,582
832
–
11
9,425
8,066
475
–
41
8,582
Lease liabilities – non-current
Current portion of lease liabilities
Total
Average rate of interest (%)
4.3
4.5
Note 20 | Payables and accrued charges
Trade and other payables 1
Customer prepayments
Dividends
Accrued compensation
Current portion of asset retirement obligations and accrued environmental costs (Note 22)
Accrued interest
Current portion of share-based compensation (Note 5)
Current portion of derivatives
Income taxes (Note 8)
Provincial mining taxes
Other taxes
Current portion of pension and other post-retirement benefits (Note 21)
Other accrued charges and others
1
Includes amounts owing to Canpotex (Note 28) of $64 (2022 – $203).
Total
11,928
(1)
492
147
1,204
(375)
492
5
1,326
12,566
1,220
(341)
334
(9)
10,846
663
334
85
1,204
11,928
2023
999
327
1,326
2023
5,477
2,084
262
597
165
117
32
16
14
1
62
15
625
9,467
2022
899
305
1,204
2022
5,797
2,298
244
681
234
102
142
35
899
114
59
15
671
11,291
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 125
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 21 | Pension and other post-retirement benefits
We offer the following pension and other post-retirement benefits to qualified employees: defined benefit pension plans;
defined contribution pension plans; and health, dental and life insurance, referred to as other post-retirement plans.
Substantially all our employees participate in at least one of these plans.
Description of defined benefit pension plans
United States
Canada
Plan type
Contributions
– non-contributory,
– guaranteed annual pension payments for life,
– benefits generally depend on years of service
and compensation level in the final years
leading up to age 65,
– benefits available starting at age 55 at a
reduced rate, and
– plans provide for maximum pensionable salary
and maximum annual benefit limits.
– made to meet or exceed minimum funding
requirements of the Employee Retirement
Income Security Act of 1974 and associated
Internal Revenue Service regulations
and procedures.
– made to meet or exceed minimum funding
requirements based on provincial statutory
requirements and associated federal
taxation rules.
Supplemental
plans in US and
Canada for Senior
Management
– non-contributory,
– unfunded, and
– supplementary pension benefits.
– provided for by charges to earnings sufficient
to meet the projected benefit obligations, and
– payments to plans are made as plan payments
to retirees occur.
Our defined benefit pension plans are funded with separate funds that are legally separated from the Company and
administered through the Pension Committee in each country, which is composed of our employees. The Pension Committee is
required by law to act in the best interests of the plan participants and, in the US and Canada, is responsible for the governance
of the plans, including setting certain policies (e.g., investment and contribution) of the funds. The current investment policy for
each country’s plans generally does not include currency hedging strategies. Plan assets held in trusts are governed by local
regulations and practices in each country, as is the nature of the relationship between the Company and the trustees and
their composition.
Description of other post-retirement plans
We provide health care plans for certain eligible retired employees in the US, Canada and Trinidad. Eligibility for these benefits is
generally based on a combination of age and years of service at retirement. Certain terms of the plans include
– coordination with government-provided medical insurance in each country;
– certain unfunded cost-sharing features such as co-insurance, deductibles and co-payments – benefits subject to change;
– for certain plans, maximum lifetime benefits;
– at retirement, the employee’s spouse and certain dependent children may be eligible for coverage;
– benefits are self-insured and are administered through third-party providers; and
– generally, retirees contribute towards annual cost of the plans.
In addition, certain Medicare eligible retired employees in the US receive an annual contribution to a Healthcare Reimbursement
Account, which can be used to purchase health benefits through a private exchange. This annual contribution can be used for
premiums or to pay deductibles and/or co-insurance. Finally, we provide non-contributory life insurance plans for certain retired
employees who meet specific age and service eligibility requirements.
126 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Risks
The defined benefit pension and other post-retirement plans expose us to broadly similar actuarial risks. The most significant
risks include investment risk and interest rate risk as discussed below. Other risks include longevity risk.
Investment risk
A deficit will be created if plan assets underperform the discount rate used in the defined benefit obligation
valuation. To mitigate investment risk, we employ
– a diversified mix of return seeking and liability hedging (i.e., fixed income) investments; and
– a risk tolerance established through careful consideration of plan liabilities, plan funded status and
corporate financial condition.
Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio
reviews, annual liability measurements and periodic asset/liability studies.
Interest rate risk
A decrease in bond interest rates will increase the pension liability; however, this is generally expected to
be partially offset by an increase in the return on the plan’s debt investments.
Financial information
Balance – beginning of year
Components of defined benefit expense recognized
in earnings
Current service cost for benefits earned during
the year
Interest (expense) income
Past service cost, including curtailment gains
and settlements 1
Foreign exchange rate changes and other
Subtotal of components of defined benefit (recovery)
expense recognized in earnings
Remeasurements of the net defined benefit liability
recognized in OCI during the year
Actuarial gain arising from:
Changes in financial assumptions
Changes in demographic assumptions
(Loss) gain on plan assets (excluding amounts
included in net interest)
Subtotal of remeasurements
Cash flows
Contributions by plan participants
Employer contributions
Benefits paid
Subtotal of cash flows
Balance – end of year 2
Balance is composed of:
Non-current assets
Other assets (Note 16)
Current liabilities
Payables and accrued charges (Note 20)
Non-current liabilities
Pension and other post-retirement benefit
liabilities
2023
Plan
assets
Obligation
Net
Obligation
2022
Plan
assets
(1,507)
1,330
(177)
(1,996)
1,731
(16)
(70)
76
(8)
(18)
7
–
–
7
(4)
–
83
79
–
65
–
4
69
–
–
(30)
(30)
4
20
(83)
(59)
(16)
(5)
76
(4)
51
7
–
(30)
(23)
–
20
–
20
(27)
(60)
24
28
(35)
423
21
–
444
(6)
–
86
80
Net
(265)
(27)
(8)
(15)
7
–
52
(39)
(21)
(8)
(43)
–
–
(337)
(337)
6
24
(86)
(56)
423
21
(337)
107
–
24
–
24
(1,439)
1,310
(129)
(1,507)
1,330
(177)
138
(15)
(252)
157
(15)
(319)
In 2023, there were design plan changes that resulted in a gain of $80 to other post-retirement pension plans.
1
2 Obligations arising from funded and unfunded pension plans are $1,266 and $173 (2022 – $1,255 and $252), respectively. Other post-retirement benefit plans
have no plan assets and are unfunded.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 127
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Plan assets
As at December 31, the fair value of plan assets of our defined benefit pension plans, by asset category, were as follows:
Cash and cash equivalents
Equity securities and equity funds
US
International
Debt securities 2
Other
2023
2022
Quoted prices
in active
markets for
identical assets
30
9
–
–
–
Quoted prices
in active
markets for
identical assets
Other 1
Total
93
8
–
–
–
4
107
14
841
263
97
115
14
841
263
Other 1
Total
5
115
9
909
233
35
124
9
909
233
Total pension plan assets
39
1,271
1,310
101
1,229
1,330
1 Approximately 96 percent (2022 – 100 percent) of the Other plan assets are held in funds whose fair values are estimated using their net asset value per share. For
the majority of these funds, the redemption frequency is immediate. The Pension Committee manages the asset allocation based upon our current liquidity and
income needs.
2 Debt securities included US securities of 76 percent (2022 – 77 percent), International securities of 20 percent (2022 – 22 percent) and Mortgage-backed securities
of 4 percent (2022 – 1 percent).
We use letters of credit or surety bonds to secure certain Canadian unfunded defined benefit plan liabilities as at December 31, 2023.
We expect to contribute approximately $140 to all pension and post-retirement plans in 2024. Total contributions recognized as
expense under all defined contribution plans for 2023 was $139 (2022 – $128).
We used the following significant assumptions to determine the benefit obligations and expense for our significant plans as at
and for the year ended December 31. These assumptions are determined by management and are reviewed annually by our
independent actuaries.
Assumptions used to determine the benefit obligations 1:
Discount rate (%)
Rate of increase in compensation levels (%)
Medical cost trend rate – assumed (%) 2
Medical cost trend rate – year reaches ultimate trend rate
Mortality assumptions (years) 3
Life expectancy at 65 for a male member currently at age 65
Life expectancy at 65 for a female member currently at age 65
Average duration of the defined benefit obligations (years) 4
Pension
Other
2023
2022
2023
2022
5.03
4.28
n/a
n/a
20.7
22.9
12.3
5.01
4.29
n/a
n/a
20.6
22.9
12.7
4.81
n/a
4.50 – 6.75
2033
4.86
n/a
4.50 – 7.00
2033
21.0
23.6
10.6
20.5
23.2
12.8
1 The current year’s expense is determined using the assumptions that existed at the end of the previous year.
2 We assumed a graded medical cost trend rate starting at 6.75 percent in 2023, moving to 4.50 percent by 2033 (2022 – starting at 7.00 percent, moving to
4.50 percent by 2033). The annual health care reimbursement amount is assumed to increase by 2.00 percent each year.
3 Based on actuarial advice in accordance with the latest available published tables, adjusted where appropriate to reflect future longevity improvements for
each country.
4 Weighted average length of the underlying cash flows.
Of the most significant assumptions, a change in discount rates has the greatest potential impact on our pension and other
post-retirement benefit plans, with sensitivity to change as follows:
Benefit obligation as reported
Discount rate
Change in assumption
1.0 percentage point decrease
1.0 percentage point increase
2023
1,439
190
(150)
2022
1,507
210
(170)
128 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 22 | Asset retirement obligations and accrued
environmental costs
December 31, 2023
Asset retirement obligations
Retail
Potash
Phosphate
Corporate and others 4,5
Accrued environmental costs
Retail
Corporate and others
Total
Cash flow
payments
(years) 1
Discounted
cash
flows 2,3
Discount rate
+0.5%
-0.5%
(70)
90
1 – 30
28 – 484
1 – 77
1 – 69
1 – 30
1 – 15
16
117
479
647
69
326
1,654
(5)
5
1 Time frame in which payments are expected to principally occur from December 31, 2023. Adjustments to the years can result from changes to the mine life and/
or changes in the rate of tailings volumes.
2 Risk-free discount rates used to discount cash flows reflect current market assessments of the time value of money and the risks specific to the timing and
jurisdiction of the obligation. Risk-free discount rates range from 3.1 percent to 5.5 percent.
3 Total undiscounted cash flows are $5.0 billion. For the Potash segment, this represents total undiscounted cash flows in the first year of decommissioning. This
excludes subsequent years of tailings dissolution, fine tails capping, tailings management area reclamation, post-reclamation activities and monitoring, and final
decommissioning, which are estimated to take an additional 124 to 456 years.
For nitrogen sites, there are no significant asset retirement obligations recorded as there is no reasonable basis for estimating a date or range of dates of
cessation of operations. We considered the historical performance of our facilities as well as our planned maintenance, major upgrades and replacements, which
can extend the useful lives of our facilities indefinitely.
Includes certain potash and phosphate sites that are non-operating sites, with the majority of phosphate site payments taking place over the next 16 years.
4
5
Balance – December 31, 2022
Disposals
Change in estimate (Note 6)
Settlements
Accretion
Foreign currency translation and other
Balance – December 31, 2023
Balance – December 31, 2023 is composed of:
Current liabilities
Payables and accrued charges (Note 20)
Non-current liabilities
Asset retirement obligations and accrued environmental costs
Asset
retirement
obligations
Accrued
environmental
costs
1,187
–
129
(94)
32
5
1,259
135
1,124
450
(2)
15
(68)
1
(1)
395
30
365
Total
1,637
(2)
144
(162)
33
4
1,654
165
1,489
We are subject to numerous environmental requirements under federal, provincial, state and local laws in the countries in which
we operate. We have gypsum stack capping, and closure and post-closure obligations through our subsidiaries, PCS Phosphate
Company, Inc., in White Springs, Florida, and PCS Nitrogen, Inc., in Geismar, Louisiana, pursuant to the financial assurance
regulatory requirements in those states. As at December 31, 2023, we had $492 in surety bonds and letters of credit outstanding
relating to these financial assurance obligations. The recorded provisions may not necessarily reflect our obligations under
these financial assurances.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 129
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 23 | Share capital
Authorized
We are authorized to issue an unlimited number of common shares without par value and an unlimited number of preferred
shares. The common shares are not redeemable or convertible. The preferred shares may be issued in one or more series with
rights and conditions to be determined by the Board of Directors.
Share repurchase programs
2021 Normal Course Issuer Bid
2022 Normal Course Issuer Bid 1
2023 Normal Course Issuer Bid
2024 Normal Course Issuer Bid 2
Commencement
date
March 1, 2021
March 1, 2022
March 1, 2023
March 1, 2024
Maximum
shares for
repurchase
Maximum
shares for
repurchase (%)
Expiry
February 28, 2022
February 7, 2023
February 29, 2024
February 28, 2025
28,468,448
55,111,110
24,962,194
24,728,159
5
10
5
5
Number of
shares
repurchased
22,186,395
55,111,110
5,375,397
–
1 The original expiry date was February 28, 2023, but we acquired the maximum aggregate number of common shares allowable on February 7, 2023.
2 On February 21, 2024, our Board of Directors approved a share repurchase program. The 2024 normal course issuer bid, which is subject to acceptance by the
Toronto Stock Exchange, will expire earlier than the date above if we acquire the maximum number of common shares allowable or otherwise decide not to
make any further repurchases.
Purchases under the normal course issuer bids were, or may be, made through open market purchases at market prices as well
as by other means permitted by applicable securities regulatory authorities, including private agreements.
Summary of share repurchases
Number of common shares repurchased for cancellation
Average price per share (US dollars)
Total cost
2023
2022
13,378,189
74.73
1,000
53,312,559
84.34
4,496
Dividends declared
During 2023, we declared dividends of $2.12 (2022 – $1.92). On February 21, 2024, our Board of Directors declared and increased
our quarterly dividend to $0.54 per share payable on April 11, 2024, to shareholders of record on March 28, 2024. The total
estimated dividend to be paid is $265.
130 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 24 | Capital management
Our capital allocation policy prioritizes safe and reliable operations, a healthy balance sheet, a sustainable dividend to
shareholders, and a strategy to allocate remaining cash flow that maximizes shareholder value.
We include total debt, adjusted total debt, adjusted net debt and shareholders’ equity as components of our capital structure.
We monitor our capital structure and, based on changes in economic conditions, may adjust the structure by adjusting the
amount of dividends paid to shareholders, repurchasing shares, issuing new shares, issuing new debt or retiring existing debt.
We have access to the capital markets through our base shelf prospectus. We use a combination of short-term and long-term
debt to finance our operations. We typically pay floating rates of interest on short-term debt and credit facilities, and fixed rates
on senior notes and debentures.
We monitor the following measures to evaluate our ability to service debt, make strategic investments and ensure we are in
compliance with our debt covenants:
Adjusted net debt to adjusted EBITDA
Adjusted EBITDA to adjusted finance costs
Debt to capital (calculated as adjusted total debt to adjusted capital) (Limit: 0.65 : 1.00)
2023
2022
1.9
7.3
0.33 : 1.00
0.9
21.6
0.32 : 1.00
Adjusted EBITDA is calculated in Note 3, while the calculations of the remaining components included in the above ratios are set
out in the following tables:
Short-term debt
Current portion of long-term debt
Current portion of lease liabilities
Long-term debt
Lease liabilities
Total debt
Letters of credit – financial
Adjusted total debt
2023
1,815
512
327
8,913
999
12,566
94
12,660
2022
2,142
542
305
8,040
899
11,928
97
12,025
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 131
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Total debt
Cash and cash equivalents
Net unamortized fair value adjustments
Adjusted net debt
Total shareholders’ equity
Adjusted total debt
Adjusted capital
Finance costs
Unwinding of discount on asset retirement obligations
Borrowing costs capitalized to property, plant and equipment
Interest on net defined benefit pension and other post-retirement plan obligations
Adjusted finance costs
2023
12,566
(941)
(294)
11,331
2023
25,201
12,660
37,861
2023
793
(33)
71
(5)
826
2022
11,928
(901)
(310)
10,717
2022
25,863
12,025
37,888
2022
563
(29)
37
(8)
563
In 2022, we filed a base shelf prospectus in Canada and the US qualifying the issuance of up to $5 billion of common shares, debt
securities and other securities during a period of 25 months from March 11, 2022. In 2023 and 2022, we issued senior notes of
$1.5 billion and $1 billion, respectively, pursuant to the base shelf prospectus and the applicable prospectus supplement. Refer
to Note 18 for details.
Note 25 | Business combinations
Acquisition date
October 1, 2022
Various
Casa do Adubo S.A. (“Casa do Adubo”)
Other acquisitions
Purchase price, net
of cash and cash
equivalents acquired,
and amounts held
in escrow
Goodwill and expected
benefits of acquisitions
$268
$153 (preliminary) (2022 – $176)
On the acquisition date, we acquired
100% of the issued and outstanding
Casa do Adubo stock.
$184 – Goodwill was fully impaired as part of
the impairment recorded to the Retail – South
America group of CGUs (Note 14).
$126 (preliminary) (2022 – $55)
The expected benefits of the acquisitions resulting in goodwill include:
– synergies from expected reduction in operating costs
– wider distribution channel for selling products of acquired businesses
– a larger assembled workforce
– potential increase in customer base
– enhanced ability to innovate
Description
An agriculture retailer in Brazil with 39 retail
locations and 10 distribution centers. This
acquisition is aligned with our disciplined
approach to capital allocation and
sustainability commitments, as we continue to
expand our presence in Brazil.
2023 – 23 Retail locations related to various
agricultural services (2022 – 43 Retail locations
related to various agricultural services and one
wholesale warehouse location)
132 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
We allocated the following values to the acquired assets and assumed liabilities based upon fair values at their respective
acquisition date:
Current assets
Goodwill
Other non-current assets
Total assets
Current liabilities
Other non-current liabilities
Total liabilities
Non-controlling interest
Total consideration
Amounts held in escrow
Total consideration, net of cash and cash equivalents acquired, and amounts
held in escrow
2023
2022
Other
acquisitions 1
Casa do
Adubo
final fair value
Other
acquisitions 1
17
126
(2)
141
20
2
22
(8)
127
26
153
275 2
184
133
592
160
116
276
–
316
(48)
268
116
55
131
302
74
42
116
–
186
(10)
176
1
2
Includes preliminary values for current year acquisitions and finalization of measurement period adjustments for prior year acquisitions.
Includes receivables from customers with gross contractual amounts of $169.
We have completed our assessment of identifying and measuring all the assets acquired and liabilities assumed relating to our
Casa do Adubo acquisition. This assessment included a thorough review of all internal and external sources of information
available on circumstances that existed at the acquisition date, engagement of independent valuation experts, and final
agreement of the purchase price with no material changes from the preliminary fair value as disclosed in the 2022 annual
consolidated financial statements. For certain other acquisitions, we finalized the purchase price with no material change to the
fair values disclosed in prior periods. Refer to Note 30 for details of our valuation technique and judgments applied.
Note 26 | Commitments
Principal portion and
estimated interest
December 31, 2023
Within 1 year
1 to 3 years
3 to 5 years
Over 5 years
Total
Lease
liabilities
Long-term
debt
Purchase
commitments
Capital
commitments
Other
commitments
368
484
222
451
1,525
966
2,324
1,556
10,493
15,339
938
249
57
106
1,350
153
19
–
–
172
188
221
149
157
715
Total
2,613
3,297
1,984
11,207
19,101
Purchase commitments
In 2023, we renewed our natural gas purchase agreement in Trinidad. The agreement is a minimum take or pay arrangement
providing for approximately 75 percent of the expected requirements of the Trinidad ammonia complex and provides for prices
that vary primarily with benchmark ammonia prices and annual escalating floor prices. The commitments included in the
foregoing table are based on floor prices and minimum purchase quantities.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 133
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Profertil has various natural gas contracts denominated in US dollars that expire in 2024 and 2028 and account for virtually all of
Profertil’s natural gas requirements. YPF S.A., our joint venture partner in Profertil, supplies approximately 70 percent of the
natural gas under these contracts.
In 2023, we entered into natural gas pipeline transportation agreements at our Geismar plant, the latest of which expires in 2033
and accounts for approximately 90 percent of the expected natural gas requirements in Geismar.
The Carseland facility has a power cogeneration agreement expiring on December 31, 2026, which provides 60 megawatt-hours
of power per hour. The price for the power is based on a fixed charge adjusted for inflation and a variable charge based on the
cost of natural gas provided to the facility for power generation.
Agreements for the purchase of sulfur for use in production of phosphoric acid provide for specified purchase quantities and
prices based on market rates at the time of delivery. Commitments included in the foregoing table are based on expected
contract prices.
Other commitments
Other commitments consist principally of pipeline capacity, technology service contracts, managed services contracts,
throughput and various rail contracts, the latest of which expires in 2036, and mineral lease commitments, the latest of which
expires in 2033.
Note 27 | Guarantees
In the normal course of business, we provide indemnification agreements to counterparties in transactions such as
purchase and sale contracts, service agreements, director/officer contracts, and leasing transactions. The terms of these
indemnification agreements
– may require us to compensate counterparties for costs incurred as a result of various events, including environmental
liabilities and changes in (or in the interpretation of) laws and regulations, or as a result of litigation claims or statutory
sanctions that may be suffered by a counterparty as a consequence of the transaction;
– will vary based upon the contract, the nature of which prevents us from making a reasonable estimate of the maximum
potential amount that we could be required to pay to counterparties; and
– have not historically resulted in any significant payments by Nutrien and, as at December 31, 2023, no amounts have been
accrued in the consolidated financial statements (except for accruals relating to certain underlying liabilities).
We directly guarantee our share of certain commitments of Canpotex (such as railcar leases) under certain agreements with
third parties. We would be required to perform on these guarantees in the event of default by the investee. No material loss is
anticipated by reason of such agreements and guarantees.
Note 28 | Related party transactions
Sales and purchases of goods
We sell potash outside Canada and the US exclusively through Canpotex. Canpotex sells potash to buyers, including Nutrien,
in export markets pursuant to term and spot contracts at agreed upon prices. Our total revenue is recognized at the amount
received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. Sales to Canpotex are
shown in Note 3. The receivable outstanding from Canpotex is shown in Note 11 and arose from sale transactions described
above. It is unsecured and bears no interest. Any credit losses held against this receivable are expected to be negligible.
Purchases from Canpotex for the year ended 2023 were $92 (2022 – $415) and the amount payable to Canpotex is shown in
Note 20.
134 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Key management personnel compensation and transactions with post-employment benefit plans
Salaries and other short-term benefits
Share-based compensation
Post-employment benefits
Termination benefits
2023
2022
10
(7)
2
2
7
13
18
3
10
44
Disclosures related to our post-employment benefit plans are shown in Note 21.
Note 29 | Contingencies and other matters
Accounting estimates and judgments
The following judgments are required to determine our exposure to possible losses and gains related to environmental matters
and other various claims and lawsuits pending:
– prediction of the outcome of uncertain events (i.e., being virtually certain, probable, remote or undeterminable);
– determination of whether recognition or disclosure in the consolidated financial statements is required; and
– estimation of potential financial effects.
Where no amounts are recognized, such amounts are contingent and disclosure may be appropriate. While the amount
disclosed in the consolidated financial statements may not be material, the potential for large liabilities exists and, therefore,
these estimates could have a material impact on our consolidated financial statements.
Supporting information
Canpotex
Nutrien is a shareholder in Canpotex, which markets Canadian potash outside of Canada and the US. Should any operating
losses or other liabilities be incurred by Canpotex, the shareholders have contractually agreed to reimburse it in proportion
to each shareholder’s productive capacity. Through December 31, 2023, we are not aware of any operating losses or
other liabilities.
Mining risk
The risk of underground water inflows and other underground risks is insured on a limited basis, subject to insurance market
availability. Through December 31, 2023, we are not aware of any material losses or other liabilities that we have not accrued for.
Environmental remediation, legal and other matters
We are engaged in ongoing site assessment and/or remediation activities at a number of facilities and sites. Anticipated costs
associated with these matters are added to accrued environmental costs in the manner described in Note 22.
We have established provisions for environmental site assessment and/or remediation matters to the extent that we consider
expenses associated with those matters likely to be incurred. Except for the uncertainties described below, we do not believe
that our future obligations with respect to these matters are reasonably likely to have a material adverse effect on our
consolidated financial statements.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 135
Overview
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Financial statements and notes
Notes
Legal matters with significant uncertainties include the following:
– The United States Environmental Protection Agency (“US EPA”) has an ongoing enforcement initiative directed at the
phosphate industry related to the scope of an exemption for mineral processing wastes under the US Resource Conservation
and Recovery Act (“RCRA”). This initiative affects the Conda Phosphate plant previously owned by Nu-West Industries, Inc.
(“Nu-West”), a wholly owned subsidiary of Nutrien (Canada) Holdings ULC, and the Nutrien phosphoric acid facilities in
Aurora, North Carolina; Geismar, Louisiana; and White Springs, Florida. Nutrien facilities received US EPA notices of violation
(“NOVs”) for alleged violations of the RCRA and various other environmental laws. Notwithstanding the sale of the Conda
Phosphate operations in January 2018, Nu-West remains responsible for certain environmental liabilities attributable to its
historic activities and for resolution of the NOVs. The facilities have been and continue to be involved in ongoing discussions
with the US EPA, the US Department of Justice and the related state agencies to resolve these matters, with one such
settlement being reached for the Geismar facility. The Geismar consent decree was entered on October 19, 2022, and
resolved the allegations associated with the historic phosphoric acid operations at that facility. Due to the nature of the
allegations at the other facilities, we are uncertain as to how the matters will be resolved. Based on settlements with other
members of the phosphate industry and the Geismar consent decree, we expect that a resolution could involve any or all of
the following: 1) penalties, which we currently believe will not be material; 2) modification of certain operating practices;
3) capital improvement projects; 4) providing financial assurance for the future closure, maintenance and monitoring costs
for the phosphogypsum stack system; and 5) addressing findings resulting from the RCRA section 3013 site investigations.
– We operate in countries that are parties to the Paris Agreement adopted in December 2015 pursuant to the United Nations
Framework Convention on Climate Change. Each country that is a party to the Paris Agreement submitted an Intended
Nationally Determined Contribution (“INDC”) towards the control of greenhouse gas emissions. The impacts on our
operations of these INDCs and other national and local efforts to limit or tax greenhouse gas emissions cannot be determined
with any certainty at this time.
In addition, various other claims and lawsuits are pending against the Company in the ordinary course of business. While it is not
possible to determine the ultimate outcome of such actions at this time, and inherent uncertainties exist in predicting such
outcomes, we believe that the ultimate resolution of such actions is not reasonably likely to have a material adverse effect on
our consolidated financial statements.
The breadth of our operations and the global complexity of tax regulations require assessments of uncertainties and judgments
in estimating the taxes we will ultimately pay. The final taxes paid are dependent upon many factors, including negotiations
with taxing authorities in various jurisdictions, outcomes of tax litigation, and resolution of disputes arising from federal,
provincial, state and local tax audits. The resolution of these uncertainties and the associated final taxes may result in
adjustments to our tax assets and tax liabilities.
We own facilities that have been either permanently or indefinitely shut down. We expect to incur nominal annual expenditures
for site security and other maintenance costs at some of these facilities. Should the facilities be dismantled, certain other
shutdown-related costs may be incurred. Such costs are not expected to have a material adverse effect on our consolidated
financial statements and would be recognized and recorded in the period in which they are incurred.
136 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Note 30 | Accounting policies, estimates
and judgments
The following discusses the significant accounting policies, estimates, judgments and assumptions that we have adopted and
applied and how they affect the amounts reported in the consolidated financial statements. Certain of our policies involve
accounting estimates and judgments because they require us to make subjective or complex judgments about matters that are
inherently uncertain and because of the likelihood that materially different amounts could be reported under different
conditions or using different assumptions.
Basis of consolidation
Principal (wholly owned) operating subsidiaries
Location
Principal activity
Potash Corporation of Saskatchewan Inc.
Canada
Mining and/or processing of crop nutrients and
corporate functions
Nutrien (Canada) Holdings ULC
Canada
Manufacturer and distributor of crop nutrients and corporate
functions
Agrium Canada Partnership
Agrium Potash Ltd.
Nutrien US LLC
Cominco Fertilizer Partnership
Loveland Products Inc.
Canada
Canada
US
US
US
Nutrien Ag Solutions (Canada) Inc.
Canada
Nutrien Ag Solutions, Inc.
Nutrien Ag Solutions Limited
PCS Nitrogen Fertilizer, L.P.
PCS Nitrogen Trinidad Limited
PCS Phosphate Company, Inc.
PCS Sales (USA), Inc.
Nutrien Financial US LLC
US
Australia
US
Trinidad
US
US
US
Manufacturer and distributor of crop nutrients
Crop input retailer
Producer of nitrogen products
Mining and/or processing of phosphate products
Marketing and sales of the Company’s products
Provide financing to customers
Climate change
Our Feeding the Future Plan includes sustainability-related commitments to help address our key climate-related risks related
to climate change and to reduce our carbon footprint. Nutrien continues to execute our sustainability strategy and deliver on
our action plan and monitor the development of sustainability frameworks and regulatory initiatives. We recognize that these
developments could further impact our accounting estimates and judgments including, but not limited to, assessment of our
asset useful lives, impairment of other long-lived assets, and asset retirement obligations and accrued environmental costs.
We have monitored and will continue to monitor these developments as they affect our consolidated financial statements.
Revenue
Transfer of control for sale of goods
Transfer of control for sale of services
At the point in time when the product is
– purchased at our Retail farm center,
– delivered and accepted by customers at their premises, or
– loaded for shipping.
Over time as the promised service is rendered.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 137
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Judgment is used to determine whether we are acting as principal or agent by evaluating who
– has the primary responsibility for fulfilling the promised good;
– bears the inventory risk including if the vendor has the right to have its product returned on demand; and
– has discretion for establishing the price.
For transactions in which we act as an agent rather than the principal, revenue is recognized net of any commissions earned.
The related commissions are recognized as the sales occur or as unconditional contracts are signed.
We recognize revenue on sales to Canpotex (as described in Note 28) when there is a transfer of control, either at the time the
product is loaded for shipping or delivered, depending on the terms of the contract. Sales revenue is recognized using a
provisional price at the time control is transferred to Canpotex, with the final pricing determined upon Canpotex’s final sale to a
third party (generally between one and three months from date of sale to Canpotex).
Our sales revenue relating to our Potash, Nitrogen and Phosphate segments is generally recorded and measured based on the
“freight on board” mine, plant, warehouse or terminal price specified in the contract (except for certain vessel sales or specific
product sales that are shipped and recorded on a delivered basis), which reflects the consideration we expect to be entitled to
in exchange for the goods or services, adjusted for any variable consideration (e.g., any trade discounts or estimated volume
rebates). Our customer contracts may provide certain product quality specification guarantees but do not generally provide for
refunds or returns.
Due to the nature of goods and services sold, any single estimate would have only a negligible impact on revenue.
As the expected period between when control over a promised good or service is transferred and when the customer pays for
that good or service is generally less than 12 months, we apply the practical expedient as provided in IFRS 15, “Revenue from
Contracts with Customers,” and do not adjust the promised amount of consideration for the effects of financing.
Intersegment sales are made under terms that approximate market value.
Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally
higher in the spring and fall application seasons. Crop input inventories are normally accumulated leading up to each
application season. Our cash collections generally occur after the application season is complete, while customer prepayments
made to us are typically concentrated in December and January and inventory prepayments paid to our suppliers are typically
concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout
the year.
Share-based compensation
Estimation involves determining
– stock option-pricing model assumptions as described in the weighted average assumptions table in Note 5;
– forfeiture rate for options granted based on past experience and future expectations, and adjusted upon actual vesting;
– projected outcome of performance conditions for PSUs, including our return on invested capital compared to Nutrien’s
weighted average cost of capital, and including the relative ranking of our total shareholder return, including expected
dividends, compared with a specified peer group using a Monte Carlo simulation option-pricing model; and
– the number of dividend equivalent units expected to be earned.
Income taxes
Taxation on earnings (loss) is composed of current and deferred income tax. Taxation is recognized in the statements of
earnings unless it relates to items recognized either in OCI or directly in shareholders’ equity.
Current income tax
Deferred income tax
– is calculated using rates enacted or substantively enacted at
the dates of the consolidated balance sheets in the countries
where our subsidiaries and equity-accounted investees
operate and generate taxable earnings.
– is determined using tax rates that have been enacted or
substantively enacted by the dates of the consolidated
balance sheets and are expected to apply when the
related deferred income tax asset is realized or the
deferred income tax liability is settled.
The realized and unrealized excess tax benefits from share-based compensation arrangements are recognized in contributed
surplus as current and deferred tax, respectively.
138 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
The final taxes paid, and potential adjustments to tax assets and liabilities, are dependent upon many factors including
– negotiations with taxation authorities in various jurisdictions;
– outcomes of tax litigation; and
– resolution of disputes arising from federal, provincial, state and local tax audits.
Deferred income tax is not accounted for
– with respect to investments in subsidiaries and equity-accounted investees where we are able to control the reversal of the
temporary difference and that difference is not expected to reverse in the foreseeable future; and
– if arising from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of
the transaction affects neither accounting nor taxable profit or loss.
Deferred tax assets are
– recognized to the extent it is probable future taxable profit will be available to use deductible temporary differences
and could be reduced if projected earnings are not achieved or increased if earnings previously not projected become
probable; and
– reviewed at each balance sheet date and amended to the extent that it is no longer probable that the related tax benefit will
be realized.
As provided in the amendments to International Accounting Standards (“IAS”) 12, we apply the mandatory exception to
recognize and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. The mandatory
exception has been applied retrospectively, with no material impact on our consolidated financial statements.
Financial instruments
Financial instruments are classified and measured as follows based on the objective of the business model for managing the
instrument or group of instruments and the contractual terms of the cash flows.
Fair value classification
FVTPL
FVTOCI
Amortized cost
Instrument type
Cash and cash
equivalents, derivatives, and
certain equity investments not
held for trading
Certain equity investments not
held for trading for which an
irrevocable election was made
at initial recognition
Receivables, short-term debt,
payables and accrued
charges, long-term debt,
lease liabilities, and other
long-term debt instruments
Financial instruments are recognized at trade date when we commit to purchase or sell the asset.
Derivatives are used to lock in exchange rates. For designated and qualified cash flow hedges
– the effective portion of the change in the fair value of the derivative is accumulated in OCI;
– when the hedged forecast transaction occurs, the related gain or loss is removed from AOCI and included in the cost of
inventory or property, plant and equipment;
– the hedging gain or loss included in the cost of inventory is recognized in earnings when the product containing the hedged
item is sold or becomes impaired; and
– the ineffective portions of hedges are recorded in net earnings in the current period.
We assess whether our derivative hedging transactions are expected to be or were highly effective, both at the hedge’s inception
and on an ongoing basis, in offsetting changes in fair values of hedged items.
Hedging transaction
Measurement of ineffectiveness
Potential sources of ineffectiveness
Foreign exchange
Comparison of the cumulative changes in fair
value and the cumulative change in the fair value
of a hypothetical derivative with terms based on
the hedged forecast cash flows
Changes in
– timing or amounts of forecasted cash flows
– embedded optionality
– our credit risk or the credit risk of
a counterparty
Financial assets and financial liabilities are offset, and the net amount is presented in the consolidated balance sheets when we
– currently have a legally enforceable right to offset the recognized amounts; and
– intend either to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 139
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Fair value measurements
Estimated fair values for financial instruments are designed to approximate amounts for which the instruments could be
exchanged in a current arm’s length transaction between knowledgeable, willing parties. The valuation policies and procedures
for financial reporting purposes are determined by our finance department.
Fair value measurements are categorized into different levels within a fair value hierarchy based on the degree to which the
lowest level inputs are observable and their significance:
Level 1
Level 2
Level 3
Unadjusted quoted prices (in active
markets accessible at the measurement
date for identical assets or liabilities)
Quoted prices (in markets that are not
active or based on inputs that are
observable for substantially the full
term of the asset or liability)
Prices or valuation techniques that
require inputs that are both
unobservable and significant to the
overall measurement
Fair value estimates
– are at a point in time and may change in subsequent reporting periods due to market conditions or other factors;
– can be determined using multiple methods, which can cause values (or a range of reasonable values) to differ; and
– may require assumptions about costs/prices over time, discount and inflation rates, defaults, and other relevant variables.
Inventories
Costs are allocated to inventory using the weighted average cost method.
Net realizable value is based on:
Products and raw materials
– selling price of the finished product (in ordinary course of
business) less the estimated costs of completion and
estimated costs to make the sale
Materials and supplies
– replacement cost
Inventories are valued monthly. Various factors impact our estimates of net realizable value, including inventory levels,
forecasted prices of key production inputs, global nutrient capacities, crop price trends, and changes in regulations and
standards employed.
Vendors may offer various incentives to purchase products for resale. Vendor rebates and prepay discounts are accounted for as
a reduction of the prices of the suppliers’ products. Rebates based on the amount of materials purchased reduce cost of goods
sold as inventory is sold. Rebates earned based on sales volumes of products are offset to cost of goods sold.
Rebates that are probable and can be reasonably estimated are accrued. Rebates that are not probable or estimable are
accrued when certain milestones are achieved.
Estimation of rebates can be complex in nature as vendor arrangements are diverse. The amount of the accrual is determined by
analyzing and reviewing historical trends to apply negotiated rates to estimated and actual purchase volumes. Estimated
amounts accrued throughout the year could also be impacted if actual purchase volumes differ from projected volumes.
Property, plant and equipment
Owned
Right-of-use (leased)
Description
– majority of our tangible assets are buildings,
machinery and equipment used to produce
or distribute our products and render
our services
– primarily include railcars, marine vessels,
real estate and mobile equipment
140 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Owned
Right-of-use (leased)
Measurement
– cost, which includes capitalized borrowing
– cost less accumulated depreciation and any
costs, less accumulated depreciation and any
accumulated impairment losses
accumulated impairment losses
– lease payments are allocated between
– cost of major inspections and overhauls
finance costs and a reduction of the liability
is capitalized
– maintenance and repair expenditures that do
not improve or extend productive life are
expensed in the period incurred
Depreciation method
– certain property, plant and equipment
– straight-line over the shorter of the asset’s
Judgment/practical
expedients
useful life and the lease term
directly related to our Potash, Nitrogen and
Phosphate segments uses units-of-production
based on the shorter of estimates of reserves
or service lives
– pre-stripping costs uses units-of-production
over the ore mined from the mineable
acreage stripped
– remaining assets uses straight-line
Estimated useful lives, expected patterns of consumption, depreciation method and residual values
are reviewed at least annually.
Judgment is required in determining
– costs, including income or expenses derived
from an asset under construction, that are
eligible for capitalization;
– timing to cease cost capitalization, generally
when the asset is capable of operating in
the manner intended by management, but
also considering the circumstances and
the industry in which the asset is to be
operated, normally predetermined by
management with reference to such factors
as productive capacity;
– the appropriate level of componentization
(for individual components for which
different depreciation methods or rates are
appropriate);
– repairs and maintenance that qualify as
major inspections and overhauls; and
– useful life over which such costs should
be depreciated, which may be impacted
by changes in our strategy, process
or operations as a result of climate-
change initiatives.
Judgment is required to determine whether a
contract or arrangement includes a lease and
if it is reasonably certain that an extension
option will be exercised. We seek to maximize
operational flexibility in managing our leasing
activities by including extension options when
negotiating new leases. Extension options are
exercisable at our option and not by the
lessors. In determining if a renewal period
should be included in the lease term, we
consider all relevant factors that create an
economic incentive for us to exercise a
renewal, including
– the location of the asset and the availability
of suitable alternatives,
– the significance of the asset to operations,
and
– our business strategy.
Estimation is used to determine the useful
lives of ROU assets, the lease term and the
appropriate discount rate applied to the lease
payments to calculate the lease liability.
Uncertainties are inherent in estimating reserve
quantities, particularly as they relate to
assumptions regarding future prices, the geology
of our mines, the mining methods used, and the
related costs incurred to develop and mine
reserves. Changes in these assumptions
could result in material adjustments to reserve
estimates, which could result in impairments
or changes to depreciation expense in
future periods.
We have chosen to
– include the use of a single discount rate for
a portfolio of leases with reasonably similar
characteristics,
– not separate non-lease components and
instead to account for lease and non-lease
components as a single arrangement, and
– use exemptions for short-term and
low-value leases which allow payments to
be expensed as incurred.
Other
Not applicable.
Lease agreements do not contain significant
covenants; however, leased assets may be
used as security for lease liabilities and
other borrowings.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 141
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Goodwill and intangible assets
Goodwill is carried at cost less any accumulated impairment losses, is not amortized, and represents the excess of the cost of an
acquisition over the fair value of the Company’s share of the net identifiable assets of the acquired subsidiary at the date of
acquisition. Goodwill is allocated to a CGU or group of CGUs for impairment testing based on the level at which it is monitored
by management and not at a level higher than an operating segment. The allocation is made to the CGU or group of CGUs
expected to benefit from the business combination in which the goodwill arose.
Intangible assets are generally measured at cost less accumulated amortization and any accumulated impairment losses.
Accumulated amortization is calculated on a straight-line basis over the asset’s useful life. We use judgment to determine which
expenditures are eligible for capitalization as intangible assets. Costs incurred internally from researching and developing a
product are expensed as incurred until technological feasibility is established, at which time the costs are capitalized until the
product is available for its intended use. Judgment is required in determining when technological feasibility of a product is
established. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. At least
annually, the useful lives are reviewed and adjusted if appropriate.
Impairment of long-lived assets
To assess impairment, assets are grouped at the smallest levels for which there are separately identifiable cash inflows that are
largely independent of the cash inflows from other assets or groups of assets (this can be at the asset or CGU level).
At the end of each reporting period, we review conditions to determine whether there is any indication that an impairment
exists that could potentially impact the carrying amounts of both our long-lived assets to be held and used (including property,
plant and equipment, and investments), and our goodwill and intangible assets. When such indicators exist, impairment testing
is performed. Additionally, goodwill is tested at least annually on October 1.
We review, at each reporting period, for possible reversal of the impairment for non-financial assets, other than goodwill.
Estimates and judgment involve
– identifying the appropriate asset, group of assets, CGU or group of CGUs;
– determining the appropriate discount rate for assessing the recoverable amount;
– making assumptions about future sales, market conditions, terminal growth rates and cash flow forecasts over the long-term
life of the assets or CGUs; and
– evaluating impacts of climate change to our strategy, processes and operations.
We cannot predict if an event that triggers impairment or a reversal of impairment will occur, when it will occur or how it will
affect reported asset amounts. Asset impairment amounts previously recorded could be affected if different assumptions were
used or if market and other conditions change. Such changes could result in non-cash charges materially affecting our
consolidated financial statements.
Equity-accounted investments
For equity-accounted investments reduced to zero, we do not eliminate our share of the unrealized earnings. If the investee
earns a profit in the subsequent period, we then recognize our share of the earnings only after adjusting for the unrealized
earnings that were not previously eliminated.
Pension and other post-retirement benefits
When a plan amendment occurs before a settlement, we recognize past service cost before any gain or loss on settlement.
Our discount rate assumptions are impacted by
– the weighted average interest rate at which each pension and other post-retirement plan liability could be effectively settled
at the measurement date;
– country specific rates; and
– the use of a yield curve approach based on the respective plans’ demographics, expected future pension benefits and
medical claims. Payments are measured and discounted to determine the present value of the expected future cash flows.
The cash flows are discounted using yields on high-quality AA-rated non-callable bonds with cash flows of similar timing
where there is a deep market for such bonds. Where we do not believe there is a deep market for such bonds (such as for
terms in excess of 10 years in Canada), the cash flows are discounted using a yield curve derived from yields on provincial
bonds rated AA or better to which a spread adjustment is added to reflect the additional risk of corporate bonds.
142 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Net actuarial gains or loss incurred during the period for defined benefit plans are closed out to retained earnings at each
period-end.
Asset retirement obligations and accrued environmental costs
Asset retirement obligations and accrued environmental costs include
– reclamation and restoration costs at our potash and phosphate mining operations, including management of materials
generated by mining and mineral processing, such as various mine tailings and gypsum;
– land reclamation and revegetation programs;
– decommissioning of underground and surface operating facilities;
– general clean-up activities aimed at returning the areas to an environmentally acceptable condition; and
– post-closure care and maintenance.
We consider the following factors as we estimate our provisions:
– environmental laws and regulations and interpretations by regulatory authorities, including updates on climate change,
could change or circumstances affecting our operations could change, either of which could result in significant changes to
current plans;
– the nature, extent and timing of current and proposed reclamation and closure techniques in view of present environmental
laws and regulations;
– appropriate technical resources, including outside consultants, assist us in developing specific site closure and post-closure
plans in accordance with the jurisdiction requirements; and
– timing of settlement of the obligations, which is typically correlated with mine life estimates except for certain land
reclamation programs.
It is reasonably possible that the ultimate costs could change in the future and that changes to these estimates could have a
material effect on our consolidated financial statements. We review our estimates for any changes in assumptions at the end of
each reporting period.
We recognized contingent liabilities related to our business combinations or acquisitions, which represent additional
environmental costs that are present obligations although cash outflows of resources are not probable. These contingent
liabilities are subsequently measured at the higher of the amount initially recognized and the amount that would be recognized
if the liability becomes probable.
Share capital
Common shares are classified as equity. Incremental costs directly attributable to the issuance of common shares are
recognized as a deduction from equity, net of any tax effects. When we repurchase our own common shares, share capital is
reduced by the average carrying value of the shares repurchased. The excess of the purchase price over the average carrying
value is recognized as a deduction from retained earnings. If the average carrying value of the shares repurchased is less than
the average carrying value of the shares in share capital, the excess is recognized as an addition to share capital. Shares are
cancelled upon repurchase.
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 143
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Business combinations
Purchase price allocation involves judgment in identifying assets acquired and liabilities assumed, and estimation of their fair
values. Key assumptions include discount rates and revenue growth rates specific to the acquired assets or liabilities assumed.
We perform a thorough review of all internal and external sources of information available based on circumstances that exist at
the acquisition date. We also engage independent valuation experts on certain acquisitions to assist in determining the fair
value of certain assets acquired and liabilities assumed and related deferred income tax impacts. To determine fair values, we
generally use the following valuation techniques:
Account
Valuation technique and judgments applied
Property, plant and
equipment
Market approach for land and certain types of personal property: sales comparison that measures
the value of an asset through an analysis of sales and offerings of comparable assets.
Intangible assets
Replacement costs for all other depreciable property, plant and equipment: measures the value of
an asset by estimating the costs to acquire or construct comparable assets and adjusts for age and
condition of the asset.
Income approach – multi-period excess earnings method: measures the value of an asset based on
the present value of the incremental after-tax cash flows attributable to the asset after deducting
contributory asset charges (“CACs”). Allocation of CACs is a matter of judgment and based on the
nature of the acquired businesses’ operations and historical trends.
We consider several factors in determining the fair value of customer relationships, such as
customers’ relationships with the acquired company and its employees, the segmentation of
customers, historical customer attrition rates, and revenue growth.
Other provisions and
contingent liabilities
Decision-tree approach of future costs and a risk premium to capture the compensation
sought by risk-averse market participants for bearing the uncertainty inherent in the cash
flows of the liability.
For each business combination, we elect to measure the non-controlling interest in the acquired entity either at fair value or at
the proportionate share of the acquiree’s identifiable net assets. Foreign exchange hedge gains or losses that we designated a
cash flow hedge are included in the consideration. The gain or loss from the cash flow hedge is deferred in OCI and subsequently
recorded as an adjustment to goodwill when the business combination occurs.
Transaction costs are recorded in integration and restructuring related costs in other (income) expenses.
Standards, amendments and interpretations effective and applied
The IASB and IFRS Interpretations Committee (“IFRIC”) has issued certain standards and amendments or interpretations to
existing standards that were effective, and we have applied.
In 2023, we adopted the following standards, amendments and annual improvements with no material impact on our
consolidated financial statements:
– Deferred Tax related to Assets and Liabilities arising from a Single Transaction (IFRS 1, IAS 12)
– Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
– Definition of Accounting Estimates (Amendments to IAS 8)
– IFRS 17 Insurance Contracts, including amendments
– International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12) – Under Pillar Two legislation, we are liable to pay
a top-up tax for differences between our Global Anti-Base Erosion (“GLoBE”) effective rate and the 15 percent minimum rate.
For jurisdictions where we operate that have substantially enacted the Pillar Two legislation, we have determined no
material impact. We also operate in jurisdictions where Pillar Two legislation may be enacted in the future. For these
jurisdictions, we have preliminarily assessed our exposure to the Pillar Two legislation if it were to come into effect and based
on this assessment we believe there is no material impact.
144 Nutrien Annual Report 2023
In millions of US dollars unless otherwise noted
Overview
MD&A
Five-year highlights
Financial statements and notes
Notes
Standards, amendments and interpretations not yet effective and not applied
The IASB and IFRIC have issued the following standards, amendments or interpretations to existing standards that were not yet
effective and not applied as at December 31, 2023.
The following amendments will be adopted in 2024 and are not expected to have a material impact on our consolidated
financial statements:
– Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
– Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
– Classification of liabilities as current or non-current (Amendments to IAS 1)
– Non-current liabilities with Covenants (Amendments to IAS 1 and IFRS Practice Statement 2)
The following amendments are being reviewed to determine the potential impact on our consolidated financial statements:
– Lack of Exchangeability (Amendments to IAS 21), effective January 1, 2025
In millions of US dollars unless otherwise noted
Nutrien Annual Report 2023 145
Terms and definitions
Terms
AECO
ABARES
Argus
Bloomberg
Conab
CME
CRU
ICE
IFA
IMEA
Moody’s
NYMEX
NYSE
S&P
SPGCI
StatsCan
TTF
TSX
USDA
CAD
USD
AUD
Scientific terms
Potash
Nitrogen
Phosphate
146 Nutrien Annual Report 2023
Alberta Energy Company, Canada
Australian Bureau of Agricultural and Resource Economics and Sciences
Argus Media group, UK
Bloomberg Finance L.P., USA
The National Supply Company (CONAB) is a public company under the Ministry of
Agriculture, Livestock and Food Supply – MAPA.
Canadian Manufacturers & Exporters
CRU International limited, UK
Intercontinental Exchange
International Fiscal Association
Mato Grosso Institute of Agricultural Economics
Moody’s Corporation (NYSE: MCO), USA
New York Mercantile Exchange, USA
New York Stock Exchange, USA
S&P Global Inc., USA
S&P Global Commodity Insights
Statistics Canada
Title Transfer Facility
Toronto Stock Exchange, Canada
United States Department of Agriculture, USA
Canadian dollar
United States dollar
Australian dollar
KCI
CO2
CO2e
DEF
ESN®
NH3
N2O
UAN
AS
DAP
MAP
MGA
MST
P2O5
SPA
potassium chloride, 60–63.2% K2O (solid)
carbon dioxide
carbon dioxide equivalent
diesel exhaust fluid
environmentally smart nitrogen, 44% nitrogen
ammonia (anhydrous), 82.2% N (liquid)
nitrous oxide
urea ammonium nitrate solution, 28–32% N (liquid)
ammonium sulfate (solid)
diammonium phosphate, 46% P2O5 (solid)
monoammonium phosphate, 52% P2O5 (solid)
merchant grade acid, 54% P2O5 (liquid)
micronized sulfur technology, P + S
diphosphorus pentoxide
superphosphoric acid, 70% P2O5 (liquid)
Product measures
K2O tonne
Mmt
MMBtu
N tonne
P2O5 tonne
Product tonne
Definitions
Brownfield
CCUS
Capital expenditures
Carbon offset/ inset
Clean ammonia
Measures the potassium content of products having different chemical analyses
Million metric tonnes
Million British thermal units
Measures the nitrogen content of products having different chemical analyses
Measures the phosphorus content of products having different chemical analyses
Standard measure of the weights of all types of potash, nitrogen and phosphate products
New project expanding or developing an existing facility or operation.
Carbon capture, utilization and storage. Process by which CO2 produced from various
industrial processes is captured and either utilized for further industrial processes or
transported to a permanent storage location to prevent release into the atmosphere.
Represents the sum of: sustaining capital expenditures, investing capital expenditures and
mine development and pre-stripping capital expenditures. See the “Other Financial
Measures” section.
Carbon offsetting is a way for entities to reduce their carbon footprint by paying another
entity to reduce their emissions. Carbon insetting refers to the actions taken by an
organization to reduce emissions within its own supply chain.
Ammonia made with direct GHG emissions reduced by at least 90 percent compared to a
conventional process, produced from hydrogen obtained using the next generation of
ammonia production technology, such as auto-thermal reforming or water electrolysis with
renewable power; this definition does not include end product use.
Community investment
Represents cash disbursements, matching of employee gifts and in-kind contributions of
equipment, goods and services, and employee volunteerism (on corporate time).
COVID-19
COVID-19 coronavirus pandemic.
Compound annual growth
rate (“CAGR”)
Represents the rate of return that would be required for an investment to grow from its
beginning balance to its ending balance assuming the profits were reinvested at the end of
each year of the investment’s lifespan.
EBITDA
Calculated as net earnings (loss) before finance costs, income taxes and depreciation and
amortization.
Greenfield
New project on a previously undeveloped site.
Greenhouse gas (“GHG”)
Gas that contributes to the greenhouse effect by absorbing infrared radiation.
Latin America
South America, Central America, Caribbean and Mexico.
Lost-time injury frequency
Total lost-time injuries for every 200,000 hours worked for all Nutrien employees,
contractors and others on site. Calculated as the total lost-time injuries multiplied by
200,000 hours worked divided by the actual number of hours worked.
Low-carbon ammonia
Merger
Ammonia made with direct GHG emissions typically reduced by approximately 60 percent
but up to 80 percent compared to a conventional process, produced by primarily using
carbon capture, utilization and storage (“CCUS”) or other low-emission production
technologies; this definition does not include end product use.
The merger of equals transaction between PotashCorp and Agrium completed effective
January 1, 2018, pursuant to which PotashCorp and Agrium combined their businesses
pursuant to a statutory plan of arrangement under the Canada Business Corporations Act
and became wholly owned subsidiaries of Nutrien Ltd.
North America
Canada and the US.
Offshore
All markets except Canada and the US.
Nutrien Annual Report 2023 147
Definitions
Proportion of women in
senior leadership
Senior leadership is defined as director level and above. Based on permanent full-time and
part-time employees.
Serious injury and fatality
A work-related fatality or life-altering injury/illness experienced by an employee or directly
supervised contractor conducting work on behalf of Nutrien.
Scope 1
Scope 2
Scope 3
Direct greenhouse gas emissions produced by Nutrien owned or controlled facilities.
Indirect greenhouse gas emissions resulting from the generation of purchased or acquired
electricity, heating, cooling and steam consumed by Nutrien owned or controlled facilities.
Indirect greenhouse gas emissions not included in Scope 2 emissions occurring as a
consequence of the activities of Nutrien, from sources not owned or controlled by Nutrien,
including both upstream and downstream emissions.
Sustainable agriculture
According to the United Nations Food and Agriculture Organization, sustainable agriculture
means increasing farm productivity while protecting natural resources and enhancing
grower resilience.
Sustainable agriproduct
program acres
Our Carbon Program is also referred to as a Sustainable Agriproducts Program. Sustainable
agriproduct acres involve agronomic solutions leading to measurable outcomes such as
carbon, soil or water, with the ability to validate and verify those outcomes.
Sustainably engaged
acres
Acres participating in programs that track field level data which can be analyzed for
sustainability metrics and/or acres participating in sustainable agriproducts programs that
incentivize growers to adopt additional sustainable practices and products resulting in
quantifiable, incremental benefits which may be verified and used for reporting purposes.
Total employee
turnover rate
The number of permanent employees who left the Company due to voluntary and
involuntary terminations, including retirements and deaths, as a percentage of average
permanent employees for the year.
Total recordable injury
frequency
Total recordable injuries for every 200,000 hours worked for all Nutrien employees,
contractors and others on site. Calculated as the total recordable injuries multiplied by
200,000 hours worked divided by the actual number of hours worked.
148 Nutrien Annual Report 2023
Shareholder information
Dividends
Dividend amounts paid to shareholders resident in Canada are paid in
Canadian dollars, calculated based on the Bank of Canada daily average
exchange rate on the dividend record date. The declaration, amount and
payment date of any dividend by the Company is at the discretion of the Board
of Directors and will depend on numerous factors, including compliance with
applicable laws and the financial performance, debt obligations, working
capital requirements and future capital requirements of Nutrien and its
subsidiaries. Historically dividends have been paid in January, April, July and
October approximately three weeks after record dates on the last trading day
of the immediately preceding month. Registered shareholders may enroll
for direct deposit by contacting Computershare Investor Services Inc., the
Company’s registrar and transfer agent.
Common share prices
The Company’s common shares are
traded on the Toronto Stock Exchange
and the New York Stock Exchange.
Nutrien is included in the S&P/TSX 60
and the S&P/TSX Composite indices.
Ownership
On February 22, 2024, there were 852
holders of record of the Company’s
common shares.
Offices
Investor relations
Nutrien's registered head office is:
We also have corporate offices at:
Investor relations department
Email
investors@nutrien.com
NYSE corporate governance
The certifications required by Section
302 of the Sarbanes-Oxley Act of
2002 are filed as exhibits to our 2023
Annual Report on Form 40-F.
Suite 1700, 211 19th Street East
Saskatoon, Saskatchewan
Canada S7K 5R6
13131 Lake Fraser Drive SE
Calgary, Alberta
Canada T2J 7E8
5296 Harvest Lake Drive
Loveland, Colorado
US 80538
Transfer agent
You can contact Computershare Investor Services Inc., the Company's
transfer agent, as follows:
Phone
1-888-847-9773
(toll-free within Canada and the US)
1-514-982-7555
(from any country other than Canada and the US)
By fax
1-888-453-0330
(all countries)
By mail
Computershare
100 University Drive
8th Floor, North Tower
Toronto, ON M5J 2Y1
Internet
Access your registered account on the Investor Centre website:
investorcentre.com
Iowa, US
The US Corn Belt is an area with deep
fertile soils. Through the use of crop
inputs and agriculture technology,
from Nutrien and the industry as a
whole, US corn yields have increased
by more than six fold since the 1930s.
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