Nutrien(NTR) - 2021 Q4 - Annual Report

Executive Summary & Highlights Nutrien achieved record financial results in 2021, driven by strong market conditions and operational execution, while also making significant progress on strategic targets and providing robust 2022 guidance Q4 & Full Year 2021 Performance Overview Nutrien delivered record financial results in Q4 and full-year 2021, driven by strong market conditions and operational execution, with net earnings, adjusted EBITDA, and cash flow from operations seeing significant increases Q4 and Full Year 2021 Consolidated Financial Highlights | Metric | Q4 2021 (Millions USD) | Q4 2020 (Millions USD) | Q4 % Change | FY 2021 (Millions USD) | FY 2020 (Millions USD) | FY % Change | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | :--------------------- | :--------------------- | :---------- | | Net earnings | 1,207 | 316 | 282% | 3,179 | 459 | 593% | | Adjusted EBITDA | 2,463 | 768 | 221% | 7,126 | 3,667 | 94% | | Diluted net earnings per share | 2.11 | 0.55 | 284% | 5.52 | 0.81 | 581% | | Adjusted net earnings per share | 2.47 | 0.24 | 929% | 6.23 | 1.80 | 246% | | Cash provided by operating activities | 3,637 | 2,778 | 31% | 3,886 | 3,323 | 17% | | Free cash flow | 1,549 | 196 | 690% | 4,300 | 1,830 | 135% | - Phosphate adjusted EBITDA increased 133% to $540 million for the full year 2021[6] - Potash adjusted EBITDA increased 130% to $2.7 billion for the full year 2021, with record sales volumes of 13.6 million tonnes[7] - Nitrogen adjusted EBITDA increased 114% to $2.3 billion for the full year 2021[7] Strategic Achievements & Capital Allocation Nutrien made significant progress on long-term strategic targets, including sustainability priorities, strengthened its balance sheet by reducing long-term debt, and returned substantial cash to shareholders through dividends and share repurchases - Reduced long-term debt by $2.1 billion in 2021[7] - Deployed $2.1 billion to dividends and share repurchases in 2021, repurchasing 15 million shares[7] - Board approved an increase in quarterly dividend to $0.48 per share and a new NCIB to purchase up to 10% of outstanding common shares[7] - Nutrien Ag Solutions (Retail) achieved record adjusted EBITDA, exceeding 2023 strategic targets with a 10.9% adjusted EBITDA margin and over $1 billion in proprietary product related gross margin (up 22%)[7] - Retail normalized comparable store sales grew 7%, and digital platform sales reached $2.1 billion[7] - Progressed Potash Next Generation initiatives, producing 1 million tonnes using tele-remote and autonomous mining techniques[7] - Completed Phase 1 brownfield expansion projects for Nitrogen on time and budget, and launched a second phase[7] 2022 Outlook & Guidance Nutrien anticipates continued strong growth in earnings and free cash flow in 2022, driven by a robust global agriculture market, and issued full-year 2022 guidance for adjusted EBITDA and adjusted net earnings per share, including plans for significant share repurchases 2022 Full-Year Guidance | Metric | Low (Billions USD) | High (Billions USD) | | :----------------------------- | :----------------- | :----------------- | | Adjusted EBITDA | 10.0 | 11.2 | | Adjusted net earnings per share | 10.20 | 11.80 | | Share repurchases | Minimum $2.0 | - | - Outlook for global agriculture and crop input markets is very strong[4] - Company is well positioned to deliver significant growth in earnings and free cash flow in 2022[4] Market Outlook The global agriculture market faces historically low grain and oilseed inventories, driving strong crop prices and sustained demand for crop nutrients, which are experiencing high prices and tight supply across potash, nitrogen, and phosphate Agriculture and Retail Market Conditions Global inventory for key grains and oilseeds remains historically low, driven by weather events and strong demand for food security, feed, and bio-energy, with strong crop prices expected to incentivize growers to invest in their crops, leading to sustained demand for crop inputs - Global inventory for key grains and oilseeds remains historically low due to weather and strong demand[10] - Corn and soybean prices in the US and Brazil are very strong, with prospective crop margins well above the 10-year average, incentivizing grower investment[10] - US planted area for major crops expected to be similar to 2021 levels (corn 91-93 million acres, soybeans 87-89 million acres)[10] - Brazilian growers planted a record 4 million additional acres of soybeans, but yields were impacted by drought[10] - Nutrien is well-positioned with fertilizer and crop protection product inventory for the North American planting season[10] Crop Nutrient Markets Overview The crop nutrient markets are characterized by high prices and tight supply across potash, nitrogen, and phosphate, driven by strong demand, supply disruptions, and elevated energy costs, with Nutrien anticipating increased sales volumes for potash and nitrogen in 2022 Global Grains & Oilseeds Global inventories of key grains and oilseeds are at historically low levels, driven by weather-related events and robust demand for food security, feed, and bio-energy, which is supporting strong crop prices and encouraging grower investment - Global inventory for key grains and oilseeds remains historically low[10] - Strong demand is fueled by a greater focus on global food security and recovering feed and bio-energy related markets[10] Potash Market Global potash prices surged in 2021 due to record demand and tight supply, exacerbated by competitor outages, project delays, and sanctions on Belarus, with these supply issues expected to persist into 2022 as Nutrien forecasts record sales volumes - Global potash prices increased due to record global demand (70 million tonnes in 2021) and tight supply[10] - Supply tightness is attributed to competitor mine flooding, new project delays, and uncertainty around sanctions on Belarus[10] - Nutrien estimates 2022 global shipments in a range of 68 to 71 million tonnes[10] - Nutrien expects record potash sales volumes between 13.7 to 14.3 million tonnes in 2022[10] Nitrogen Market Nitrogen prices are supported by strong demand, high energy prices in Europe, and geopolitical risks, with global urea prices softening seasonally while ammonia and nitrates continue to strengthen due to supply constraints, and Nutrien expects increased sales volumes in 2022 - Nitrogen prices supported by strong demand, soaring energy prices in Europe, and geopolitical risks[10] - Global urea prices softened in early 2022, but ammonia and nitrates prices continue to strengthen[10] - North American natural gas prices expected to average $3.75-$4.25 per MMBtu in 2022, well below European and Asian import levels[10] - Nutrien expects to increase Nitrogen sales volumes to 10.8 to 11.3 million tonnes in 2022[10] Phosphate Market Phosphate prices are bolstered by anticipated supply reductions from China due to export restrictions and elevated raw material costs, compounded by tight inventories in key import markets like India - Phosphate prices supported by expected reduction in supply from China due to export restrictions[10] - Elevated raw material input costs and tight inventories in key import markets (e.g., India) contribute to price strength[10] Financial Outlook and Guidance Nutrien projects strong earnings and free cash flow growth for 2022, issuing comprehensive guidance for adjusted EBITDA and EPS, supported by specific market assumptions and sensitivities for key commodity prices 2022 Full-Year Guidance Nutrien issued comprehensive full-year 2022 guidance, projecting strong adjusted net earnings per share and adjusted EBITDA, with significant contributions expected from its Retail, Potash, and Nitrogen segments, and including plans for substantial share repurchases 2022 Guidance Ranges | Metric | Low | High | | :-------------------------------- | :---- | :---- | | Adjusted net earnings per share | $10.20 | $11.80 | | Adjusted EBITDA (billions USD) | $10.0 | $11.2 | | Retail Adjusted EBITDA (billions USD) | $1.7 | $1.8 | | Potash Adjusted EBITDA (billions USD) | $5.0 | $5.5 | | Nitrogen Adjusted EBITDA (billions USD) | $3.2 | $3.6 | | Phosphate Adjusted EBITDA (millions USD) | $500 | $600 | | Potash sales tonnes (millions) | 13.7 | 14.3 | | Nitrogen sales tonnes (millions) | 10.8 | 11.3 | | Depreciation and amortization (billions USD) | $2.0 | $2.1 | | Effective tax rate on adjusted earnings | 25% | 26% | | Sustaining capital expenditures (billions USD) | $1.2 | $1.3 | | Minimum share repurchases | $2.0 billion | - | Annual Assumptions & Sensitivities The 2022 guidance is based on specific assumptions for key market variables, and the company provided sensitivities illustrating the impact of changes in natural gas prices and realized selling prices for potash, ammonia, and urea on adjusted EBITDA and EPS 2022 Annual Assumptions & Sensitivities | Assumption/Sensitivity | Impact to Adjusted EBITDA | Impact to Adjusted EPS | | :------------------------------------ | :------------------------ | :--------------------- | | $1/MMBtu change in NYMEX (Nitrogen related) | $180 million | $0.25 | | $25/tonne change in realized potash selling prices | $290 million | $0.40 | | $25/tonne change in realized ammonia selling prices | $50 million | $0.07 | | $25/tonne change in realized urea selling prices | $80 million | $0.11 | | 2022 FX Rate CAD to USD | 1.26 | - | | 2022 NYMEX natural gas ($US/MMBtu) | ~$4.00 | - | Consolidated Results Nutrien's consolidated financial performance in 2021 demonstrated substantial growth in sales, gross margin, net earnings, and cash flow, primarily due to higher selling prices and increased sales volumes across its nutrient businesses Financial Performance Summary Nutrien's consolidated financial performance in Q4 and full-year 2021 showed substantial growth in sales, gross margin, net earnings, and adjusted EBITDA, primarily driven by higher selling prices across nutrient businesses, increased potash sales volumes, and strong Retail segment growth Consolidated Financial Performance (Millions USD) | Metric | Q4 2021 | Q4 2020 | Q4 % Change | FY 2021 | FY 2020 | FY % Change | | :-------------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Sales | 7,267 | 4,052 | 79% | 27,712 | 20,908 | 33% | | Gross margin | 3,206 | 1,165 | 175% | 9,409 | 5,239 | 80% | | Net earnings | 1,207 | 316 | 282% | 3,179 | 459 | 593% | | Adjusted EBITDA | 2,463 | 768 | 221% | 7,126 | 3,667 | 94% | | Diluted net earnings per share | 2.11 | 0.55 | 284% | 5.52 | 0.81 | 581% | | Adjusted net earnings per share | 2.47 | 0.24 | 929% | 6.23 | 1.80 | 246% | - Significant increases were due to higher net realized selling prices across nutrient businesses, higher potash sales volumes, and strong organic and proprietary product sales growth in Retail[16] - 2020 results included an $824 million non-cash impairment related to the Phosphate business and a $250 million gain from the MOPCO divestment, with no similar transactions in 2021[16][17] Cash Flow Performance Cash flow provided by operating activities increased in both the fourth quarter and full year of 2021, primarily driven by higher net earnings, with free cash flow also seeing substantial growth, reflecting improved liquidity and financial strength Consolidated Cash Flow Performance (Millions USD) | Metric | Q4 2021 | Q4 2020 | Q4 % Change | FY 2021 | FY 2020 | FY % Change | | :-------------------------------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Cash provided by operating activities | 3,637 | 2,778 | 31% | 3,886 | 3,323 | 17% | | Free cash flow | 1,549 | 196 | 690% | 4,300 | 1,830 | 135% | | Free cash flow including changes in non-cash operating working capital | 3,183 | 2,370 | 34% | 2,639 | 2,404 | 10% | - Increase in cash flow from operating activities primarily due to higher net earnings[17] - COVID-19 pandemic had a limited impact on results during Q4 and full year 2021[17] Segment Results Nutrien's segments, including Retail, Potash, Nitrogen, and Phosphate, all delivered strong financial performance in 2021, driven by increased sales, higher prices, and strategic operational improvements, despite some volume fluctuations and rising input costs Nutrien Ag Solutions ("Retail") Nutrien Ag Solutions delivered strong performance in 2021, with significant increases in sales and adjusted EBITDA, driven by market share growth, strong agriculture fundamentals, and strategic procurement, while proprietary product sales and digital platform adoption also contributed to record results Q4 & Full Year Performance Retail segment achieved record adjusted EBITDA in both Q4 and full year 2021, with sales increasing significantly and gross margin also seeing substantial growth, supported by strategic procurement and proprietary product sales Retail Segment Financial Performance (Millions USD) | Metric | Q4 2021 | Q4 2020 | Q4 % Change | FY 2021 | FY 2020 | FY % Change | | :---------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Sales | 3,878 | 2,618 | 48% | 17,734 | 14,785 | 20% | | Gross margin | 1,173 | 885 | 33% | 4,600 | 3,736 | 23% | | Adjusted EBITDA | 442 | 297 | 49% | 1,939 | 1,430 | 36% | - Adjusted EBITDA increased due to increased sales and gross margin from market share growth, strong agriculture fundamentals, and expansion in South America[25] - Gross margin increases were supported by strategic procurement of crop nutrients and crop protection products in a rising price environment and a 22% increase in proprietary product related gross margin[25] - Retail cash operating coverage ratio declined to 58% in 2021 due to significantly higher gross margin[25] Product Line Performance All major product lines within Retail, including crop nutrients, crop protection products, seed, and merchandise, experienced sales growth in 2021, driven by higher volumes, prices, and market expansion, with Nutrien Financial also seeing increased utilization, while Services and other sales decreased due to a divestiture Retail Sales by Product Line (Millions USD) | Product Line | FY 2021 Sales | FY 2020 Sales | FY % Change | | :------------------------ | :------------ | :------------ | :---------- | | Crop nutrients | 7,290 | 5,200 | 40% | | Crop protection products | 6,333 | 5,602 | 13% | | Seed | 2,008 | 1,790 | 12% | | Merchandise | 1,033 | 943 | 10% | | Nutrien Financial | 189 | 129 | 47% | | Services and other | 1,051 | 1,241 | (15%) | - Crop nutrients sales increased due to record sales volumes and higher selling prices, with gross margin per tonne up $31[25] - Crop protection products sales increased due to market share growth, higher prices, and increased proprietary product sales, especially in Australia[25] - Seed sales increased in all key regions due to higher planted acreage, prices, and organic growth in South America[25] - Nutrien Financial sales increased due to higher utilization; net receivables were $2.2 billion, up $0.8 billion YoY, with minimal credit loss[25] - Services and other sales decreased due to the divestiture of an Australian livestock export business in Q4 2020[25] Potash The Potash segment experienced substantial growth in 2021, driven by record sales volumes and significantly higher net realized selling prices, with this performance supported by Nutrien's flexible, low-cost mining network and strong global demand amidst tight supply Q4 & Full Year Performance Potash adjusted EBITDA increased significantly in Q4 and full year 2021, primarily due to higher net realized selling prices and record sales volumes, enabled by increased production capacity Potash Segment Financial Performance (Millions USD) | Metric | Q4 2021 | Q4 2020 | Q4 % Change | FY 2021 | FY 2020 | FY % Change | | :---------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Net sales | 1,420 | 450 | 216% | 4,036 | 2,146 | 88% | | Gross margin | 1,115 | 145 | 669% | 2,751 | 963 | 186% | | Adjusted EBITDA | 1,053 | 220 | 379% | 2,736 | 1,190 | 130% | - Adjusted EBITDA increased due to higher net realized selling prices and record sales volumes, attributed to the ability to increase production by nearly 1 million tonnes[28] Sales Volumes & Prices Potash sales volumes reached record levels in Q4 and full year 2021, driven by strong global demand and tight supply, with net realized selling prices also increasing substantially due to robust demand, competitor outages, and geopolitical uncertainties Potash Sales Volumes (Thousands Tonnes) & Average Selling Price (USD/Tonne) | Metric | Q4 2021 | Q4 2020 | Q4 % Change | FY 2021 | FY 2020 | FY % Change | | :-------------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Sales volumes | 3,056 | 2,654 | 15% | 13,625 | 12,824 | 6% | | Average per tonne selling price | 465 | 170 | 174% | 296 | 167 | 77% | - Sales volumes were a record for Q4, meeting strong global demand and tight global supply[28] - Net realized selling price increased due to strong global demand, higher crop prices, competitor outages, project delays, and uncertainty regarding Belarus sanctions[28] - Cost of goods sold per tonne decreased in Q4 due to lower depreciation but increased for the full year due to higher royalties and cost inflation[28] Canpotex Sales by Market Canpotex sales volumes in 2021 showed a shift in market distribution, with increased percentages to Latin America and Other Asian markets, while sales to China and India decreased Canpotex Sales by Market (Percentage of Sales Volumes) | Market | FY 2021 | FY 2020 | Change | | :-------------- | :------ | :------ | :----- | | Latin America | 38% | 32% | 6% | | Other Asian markets | 35% | 25% | 10% | | China | 11% | 22% | (11%) | | Other markets | 10% | 7% | 3% | | India | 6% | 14% | (8%) | Nitrogen The Nitrogen segment achieved significant adjusted EBITDA growth in 2021, primarily driven by higher net realized selling prices that offset increased natural gas costs, with sales volumes seeing a slight decrease due to planned plant turnarounds and lower initial inventory Q4 & Full Year Performance Nitrogen's adjusted EBITDA increased substantially in Q4 and full year 2021, reflecting strong market conditions and higher selling prices, despite a slight decrease in sales volumes Nitrogen Segment Financial Performance (Millions USD) | Metric | Q4 2021 | Q4 2020 | Q4 % Change | FY 2021 | FY 2020 | FY % Change | | :---------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Net sales | 1,456 | 555 | 162% | 3,984 | 2,222 | 79% | | Gross margin | 754 | 112 | 573% | 1,726 | 475 | 263% | | Adjusted EBITDA | 921 | 266 | 246% | 2,308 | 1,080 | 114% | - Adjusted EBITDA increased primarily due to higher net realized selling prices, which more than offset higher natural gas costs[32] Sales Volumes & Prices Nitrogen sales volumes slightly decreased in 2021 due to increased plant turnaround activity and lower starting inventory, however, net realized selling prices were significantly higher across all product categories, driven by strong global demand and tight supply Nitrogen Sales Volumes (Thousands Tonnes) & Average Selling Price (USD/Tonne) | Product Line | FY 2021 Sales Volumes | FY 2020 Sales Volumes | FY % Change | FY 2021 Avg Price | FY 2020 Avg Price | FY % Change | | :-------------------------- | :-------------------- | :-------------------- | :---------- | :---------------- | :---------------- | :---------- | | Ammonia | 2,919 | 2,778 | 5% | 477 | 224 | 113% | | Urea | 3,059 | 3,475 | (12%) | 478 | 268 | 78% | | Solutions, nitrates and sulfates | 4,747 | 4,713 | 1% | 238 | 142 | 68% | | Total Manufactured Product | 10,725 | 10,966 | (2%) | 371 | 203 | 83% | - Sales volumes decreased slightly due to more planned plant turnaround activity, temporary production outages, and lower inventory volumes at the beginning of 2021[32] - Ammonia operating rates reached 97% in Q4 and 90% for the full year 2021[32] - Net realized selling price was higher due to higher benchmark prices from strong global demand and tight global supply[32] Natural Gas Prices Impact Natural gas prices, a key input cost for Nitrogen production, increased significantly in 2021, impacting the cost of goods sold, driven by higher North American gas index prices and increased gas costs in Trinidad Natural Gas Prices in Cost of Production (USD per MMBtu) | Metric | Q4 2021 | Q4 2020 | Q4 % Change | FY 2021 | FY 2020 | FY % Change | | :------------------------------------------ | :------ | :------ | :---------- | :------ | :------ | :---------- | | Overall gas cost excluding realized derivative impact | 6.43 | 2.71 | 137% | 4.60 | 2.31 | 99% | | Overall gas cost | 6.40 | 2.74 | 134% | 4.61 | 2.36 | 95% | | Average NYMEX | 5.83 | 2.66 | 119% | 3.84 | 2.08 | 85% | | Average AECO | 3.93 | 2.10 | 87% | 2.84 | 1.68 | 69% | - Natural gas prices in cost of production increased due to higher North American gas index prices and increased gas costs in Trinidad[33] - Cost of goods sold per tonne increased primarily due to significantly higher natural gas costs[32] Phosphate The Phosphate segment achieved substantial adjusted EBITDA growth in 2021, driven by higher net realized selling prices, which more than offset increased raw material costs and slightly lower sales volumes for the full year, with improved plant reliability contributing to increased production Q4 & Full Year Performance Phosphate's adjusted EBITDA saw a significant increase in Q4 and full year 2021, reflecting robust global demand and tight inventories, despite higher raw material costs Phosphate Segment Financial Performance (Millions USD) | Metric | Q4 2021 | Q4 2020 | Q4 % Change | FY 2021 | FY 2020 | FY % Change | | :---------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Net sales | 532 | 280 | 90% | 1,628 | 1,075 | 51% | | Gross margin | 163 | 16 | 919% | 421 | 36 | n/m | | Adjusted EBITDA | 196 | 63 | 211% | 540 | 232 | 133% | - Adjusted EBITDA increased due to higher net realized selling prices, which more than offset higher raw material costs and lower sales volumes for the full year[40] Sales Volumes & Prices Phosphate sales volumes increased in Q4 2021 due to timing and sales mix, but were slightly lower for the full year due to lower initial inventory and a higher mix of P2O5 content sales, with net realized selling prices significantly increasing due to strong global demand and elevated raw material costs Phosphate Sales Volumes (Thousands Tonnes) & Average Selling Price (USD/Tonne) | Product Line | FY 2021 Sales Volumes | FY 2020 Sales Volumes | FY % Change | FY 2021 Avg Price | FY 2020 Avg Price | FY % Change | | :-------------------- | :-------------------- | :-------------------- | :---------- | :---------------- | :---------------- | :---------- | | Fertilizer | 1,840 | 2,048 | (10%) | 602 | 328 | 84% | | Industrial and feed | 779 | 733 | 6% | 667 | 552 | 21% | | Total Manufactured Product | 2,619 | 2,781 | (6%) | 622 | 387 | 61% | - Sales volumes increased in Q4 2021 due to timing and sales mix, and higher operating rates[40] - Full year sales volumes were slightly lower due to lower inventory levels at the beginning of 2021 and a greater mix of higher P2O5 content sales[40] - Net realized selling price increased due to robust global phosphate demand, tight inventories, and higher global raw material costs[40] - P2O5 production increased due to improved reliability at Aurora and White Springs plants[40] Corporate and Others The Corporate and Others segment reported increased adjusted EBITDA in 2021, despite higher share-based compensation and other expenses, with the increase in share-based compensation linked to the company's share price appreciation Corporate and Others Financial Performance (Millions USD) | Metric | Q4 2021 | Q4 2020 | Q4 % Change | FY 2021 | FY 2020 | FY % Change | | :-------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Sales | - | 12 | (100%) | - | 82 | (100%) | | Gross margin | - | 1 | (100%) | - | 8 | (100%) | | EBIT | (281) | (206) | 36% | (705) | (541) | 30% | | Adjusted EBITDA | (150) | (84) | 79% | (308) | (286) | 8% | | Share-based compensation expense | 73 | 60 | 22% | 198 | 69 | 187% | - Share-based compensation expense was higher due to an increase in share price, resulting in a higher value of share-based awards outstanding[38] - Other expenses were higher due to foreign exchange losses, asset retirement obligations, and cloud computing related expenses, partially offset by lower integration and restructuring costs[38] Eliminations Eliminations of gross margin between operating segments resulted in a negative impact of $(89) million for the full year 2021, a significant change from a positive recovery in 2020, primarily due to higher-margin inventories held by the Retail segment as global commodity benchmark prices increased - Eliminations of gross margin between operating segments for FY 2021 were $(89) million, compared to a $21 million recovery in FY 2020[39] - Significant eliminations in 2021 were due to higher-margin inventories held by the Retail segment as global commodity benchmark prices increased[39] Finance Costs, Income Tax Expense (Recovery) and Other Comprehensive Income Finance costs increased significantly in 2021 due to a loss on early extinguishment of long-term debt, income tax expense also rose sharply, reflecting higher earnings, and other comprehensive income decreased, mainly due to the weakening of the Australian dollar against the US dollar Finance Costs, Income Tax, and Other Comprehensive Income (Millions USD) | Metric | Q4 2021 | Q4 2020 | Q4 % Change | FY 2021 | FY 2020 | FY % Change | | :-------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Finance costs | 246 | 119 | 107% | 613 | 520 | 18% | | Income tax expense (recovery) | 374 | (32) | n/m | 989 | (77) | n/m | | Other comprehensive income | 72 | 280 | (74%) | 78 | 194 | (60%) | - Finance costs were higher mainly due to a $142 million loss on early extinguishment of long-term debt[41] - Income tax expense was higher due to significantly higher earnings in 2021; 2020 included $80 million in discrete tax recoveries[43] - Other comprehensive income was primarily driven by changes in currency translation of foreign operations and share price movement of investment in Sinofert Holdings Ltd[43] - In 2021, the Australian dollar weakened relative to the US dollar, resulting in lower other comprehensive income compared to a gain in 2020[43] Forward-Looking Statements This section outlines Nutrien's forward-looking statements, including business strategies, 2022 guidance, and capital allocation plans, emphasizing that these statements are subject to various assumptions, risks, and uncertainties, such as global economic conditions, market prices, regulatory changes, and the impacts of the COVID-19 pandemic, which could cause actual results to differ materially Company Information This section provides an overview of Nutrien as a leading global crop input provider, along with essential contact details for investor and media relations, and information regarding the Q4 2021 earnings conference call About Nutrien Nutrien is the world's largest provider of crop inputs and services, playing a crucial role in sustainable food production, producing and distributing approximately 27 million tonnes of potash, nitrogen, and phosphate globally, leveraging its integrated portfolio for stable earnings, growth, and capital returns - Nutrien is the world's largest provider of crop inputs and services[50] - Produces and distributes approximately 27 million tonnes of potash, nitrogen, and phosphate products worldwide[50] - Operates with a long-term view, committed to economic, environmental, and social priorities[50] Investor & Media Relations Contact information for Nutrien's Investor Relations and Media Relations teams is provided for further inquiries, with selected financial data available for download via an interactive data tool - Investor Relations contact: Jeff Holzman, Vice President, Investor Relations (306) 933-8545, Investors@nutrien.com[51] - Media Relations contact: Megan Fielding, Vice President, Brand & Culture Communications (403) 797-3015[51] - Selected financial data available at www.nutrien.com/investors/interactive-datatool[51](index=51&type=chunk) Conference Call Details Nutrien scheduled a conference call for February 17, 2022, at 10:00 am Eastern Time to discuss its Q4 2021 results, with participants required to pre-register online or via phone to access the event - Conference Call scheduled for Thursday, February 17, 2022, at 10:00 am Eastern Time[52] - Pre-registration required via online link or phone with a conference ID[52] - Live Audio Webcast available at http://www.nutrien.com/investors/events/2021-q4-earnings-conference-call[52](index=52&type=chunk) Appendix A - Selected Additional Financial Data Appendix A presents supplementary financial data, including detailed retail performance metrics, Nutrien Financial receivables, selected nitrogen measures, and production volumes for potash, ammonia, and P2O5 Selected Retail Measures This section provides detailed retail performance metrics for 2021 and 2020, including proprietary product margins, crop nutrient sales volumes, selling prices, gross margins per tonne, and key financial performance ratios like adjusted EBITDA margin and cash operating coverage ratio Selected Retail Measures (FY 2021 vs FY 2020) | Metric | FY 2021 | FY 2020 | | :-------------------------------------------------- | :------ | :------ | | Proprietary products margin as % of product line margin (%): | | | | Crop nutrients | 12% | 14% | | Crop protection products | 34% | 32% | | Seed | 44% | 46% | | All products | 23% | 23% | | Crop nutrients sales volumes (thousands tonnes): | | | | North America | 9,848 | 9,746 | | International | 3,535 | 2,986 | | Total | 13,383 | 12,732 | | Crop nutrients selling price per tonne: | | | | North America | $556 | $421 | | International | $512 | $367 | | Total | $545 | $408 | | Crop nutrients gross margin per tonne: | | | | North America | $133 | $99 | | International | $82 | $55 | | Total | $119 | $89 | | Retail adjusted EBITDA margin (%) | 11% | 10% | | Retail adjusted EBITDA per US selling location (thousands USD) | 1,481 | 1,075 | | Retail adjusted average working capital to sales (%) | 13% | 15% | | Retail adjusted average working capital to sales excluding Nutrien Financial (%) | - | 5% | | Nutrien Financial adjusted net interest margin (%) | 6.6% | 5.3% | | Retail cash operating coverage ratio (%) | 58% | 62% | | Retail normalized comparable store sales (%) | 7% | 6% | Nutrien Financial Data Nutrien Financial's receivables increased significantly by the end of 2021, with a substantial portion categorized as very low or low risk of default, and bad debt expense for the year decreased compared to 2020 Nutrien Financial Receivables (Millions USD) as at December 31, 2021 | Category | Current | <31 days past due | 31–90 days past due | >90 days past due | Gross Receivables | Allowance | Net Receivables | | :------------------------ | :------ | :---------------- | :------------------ | :---------------- | :---------------- | :-------- | :-------------- | | North America | 1,410 | 45 | 12 | 47 | 1,514 | (26) | 1,488 | | International | 537 | 47 | 26 | 54 | 664 | (2) | 662 | | Nutrien Financial receivables | 1,947 | 92 | 38 | 101 | 2,178 | (28) | 2,150 | | Bad debt expense (FY 2021) | - | - | - | - | - | - | $10 million | | Bad debt expense (FY 2020) | - | - | - | - | - | - | $26 million | - Gross receivables include $1,792 million (2020 – $1,147 million) with very low risk of default and $386 million (2020 – $270 million) with low risk of default[56] Selected Nitrogen Measures This section details Nitrogen sales volumes, net sales, and net selling prices per tonne for fertilizer and industrial/feed products in 2021 and 2020, showing overall increases in net sales and selling prices despite some volume fluctuations Selected Nitrogen Measures (FY 2021 vs FY 2020) | Metric | FY 2021 | FY 2020 | | :-------------------------- | :------ | :------ | | Sales volumes (thousands tonnes): | | | | Fertilizer | 6,028 | 6,750 | | Industrial and feed | 4,697 | 4,216 | | Net sales (millions USD): | | | | Fertilizer | 2,364 | 1,467 | | Industrial and feed | 1,620 | 755 | | Net selling price per tonne: | | | | Fertilizer | $392 | $217 | | Industrial and feed | $345 | $179 | Production Measures Production metrics for Potash, Ammonia, and P2O5 show increased output in 2021, with improved operating rates for Ammonia and P2O5, Potash production also saw a notable increase, while shutdown weeks decreased significantly Production Measures (FY 2021 vs FY 2020) | Metric | FY 2021 | FY 2020 | | :------------------------------------ | :------ | :------ | | Potash production (thousands tonnes) | 13,790 | 12,595 | | Potash shutdown weeks | 14 | 38 | | Ammonia production – total | 5,996 | 6,063 | | Ammonia production – adjusted | 3,932 | 4,102 | | Ammonia operating rate (%) | 90% | 93% | | P2O5 production (thousands tonnes) | 1,518 | 1,444 | | P2O5 operating rate (%) | 89% | 85% | Appendix B - Non-IFRS Financial Measures Appendix B defines and reconciles key non-IFRS financial measures such as Adjusted EBITDA, Adjusted Net Earnings, Free Cash Flow, and various operational ratios, providing insights into Nutrien's underlying business performance Adjusted EBITDA (Consolidated) Adjusted EBITDA is a non-IFRS measure used by management to evaluate day-to-day operational performance, excluding long-term investment and financing decisions, and is calculated by adjusting net earnings for finance costs, income taxes, depreciation, amortization, share-based compensation, and certain other non-operating items - Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation, certain foreign exchange gain/loss, and other specific income/expenses[64] - Management uses this measure to focus on day-to-day operations and assess the ability to service debt and meet payment obligations[65] Adjusted EBITDA Reconciliation (Millions USD) | Metric | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Net earnings | 1,207 | 316 | 3,179 | 459 | | Finance costs | 246 | 119 | 613 | 520 | | Income tax expense (recovery) | 374 | (32) | 989 | (77) | | Depreciation and amortization | 497 | 499 | 1,951 | 1,989 | | EBITDA | 2,324 | 902 | 6,732 | 2,891 | | Share-based compensation expense | 73 | 60 | 198 | 69 | | Foreign exchange loss, net of related derivatives | 38 | 15 | 39 | 19 | | Integration and restructuring related (recovery) costs | (4) | 22 | 43 | 60 | | Impairment of assets | 21 | 1 | 33 | 824 | | COVID-19 related expenses | 11 | 18 | 45 | 48 | | Loss on disposal of business | - | - | - | 6 | | Net gain on disposal of investment in MOPCO | - | (250) | - | (250) | | Cloud computing transition adjustment | - | - | 36 | - | | Adjusted EBITDA | 2,463 | 768 | 7,126 | 3,667 | Adjusted Net Earnings and Adjusted Net Earnings Per Share Adjusted net earnings and per share figures are non-IFRS measures that provide insight into the performance of day-to-day operations by excluding specific non-recurring or non-operational items from net earnings, net of tax, and this measure is also used in employee remuneration calculations - Adjusted net earnings and per share are calculated as net earnings (loss) before share-based compensation, certain foreign exchange gain/loss, and other specific income/expenses (net of tax)[69] - This measure focuses on day-to-day operational performance and is used in employee remuneration calculations[70] Adjusted Net Earnings Reconciliation (Millions USD, except per share) | Metric | Q4 2021 Post-Tax | Q4 2021 Per Diluted Share | FY 2021 Post-Tax | FY 2021 Per Diluted Share | | :------------------------------------------ | :--------------- | :------------------------ | :--------------- | :------------------------ | | Net earnings attributable to equity holders of Nutrien | 1,201 | 2.11 | 3,153 | 5.52 | | Adjustments: | | | | | | Share-based compensation expense | 56 | 0.10 | 151 | 0.27 | | Foreign exchange loss, net of related derivatives | 29 | 0.05 | 30 | 0.05 | | Integration and restructuring related (recovery) costs | (3) | (0.01) | 33 | 0.06 | | Impairment of assets | 16 | 0.03 | 25 | 0.04 | | COVID-19 related expenses | 8 | 0.01 | 34 | 0.06 | | Cloud computing transition adjustment | - | - | 27 | 0.05 | | Loss on early extinguishment of debt | 104 | 0.18 | 104 | 0.18 | | Adjusted net earnings | 1,411 | 2.47 | 3,557 | 6.23 | | Metric | Q4 2020 Post-Tax | Q4 2020 Per Diluted Share | FY 2020 Post-Tax | FY 2020 Per Diluted Share | | :------------------------------------------ | :--------------- | :------------------------ | :--------------- | :------------------------ | | Net earnings attributable to equity holders of Nutrien | 316 | 0.55 | 459 | 0.81 | | Adjustments: | | | | | | Share-based compensation expense | 36 | 0.06 | 50 | 0.09 | | Foreign exchange loss, net of related derivatives | 9 | 0.02 | 14 | 0.02 | | Integration and restructuring related costs | 13 | 0.03 | 44 | 0.08 | | Impairment of assets | 1 | - | 657 | 1.15 | | COVID-19 related expenses | 13 | 0.02 | 49 | 0.09 | | Loss on disposal of business | - | - | 4 | - | | Net gain on disposal of investment in MOPCO | (250) | (0.44) | (250) | (0.44) | | Adjusted net earnings | 138 | 0.24 | 1,027 | 1.80 | Adjusted EBITDA and Adjusted Net Earnings Per Share Guidance Nutrien's guidance for Adjusted EBITDA and Adjusted Net Earnings Per Share are forward-looking non-IFRS financial measures, with reconciliations to IFRS not provided due to the inherent uncertainty of future results and unknown variables - Guidance for Adjusted EBITDA and Adjusted Net Earnings Per Share are forward-looking non-IFRS financial measures[72] - Reconciliation to IFRS is not provided due to unknown variables and uncertainty related to future results[72] - Guidance excludes impacts of share-based compensation, foreign exchange, integration/restructuring costs, impairment, COVID-19 expenses, disposal gains/losses, IFRS adjustments, and debt extinguishment gains/losses[72] Free Cash Flow Free cash flow and free cash flow including changes in non-cash operating working capital are non-IFRS measures used to assess liquidity and financial strength, indicating the company's ability to service debt and make strategic investments, and these are derived from cash provided by operating activities less sustaining capital expenditures - Free cash flow is calculated as cash provided by operating activities less sustaining capital expenditures and before changes in non-cash operating working capital[74] - Used to evaluate liquidity, financial strength, and ability to service debt and make strategic investments[75] Free Cash Flow Reconciliation (Millions USD) | Metric | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | | :-------------------------------------------------- | :------ | :------ | :------ | :------ | | Cash provided by operating activities | 3,637 | 2,778 | 3,886 | 3,323 | | Sustaining capital expenditures | (454) | (408) | (1,247) | (919) | | Free cash flow including changes in non-cash operating working capital | 3,183 | 2,370 | 2,639 | 2,404 | | Changes in non-cash operating working capital | 1,634 | 2,174 | (1,661) | 574 | | Free cash flow | 1,549 | 196 | 4,300 | 1,830 | Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured This non-IFRS measure focuses on the operational performance of manufactured products by excluding the effects of long-term investment and financing decisions, providing a clearer view of day-to-day profitability per tonne - Definition: Gross margin per tonne from manufactured products less depreciation and amortization per tonne[77] - Used to focus on day-to-day operational performance, excluding impacts of long-term investment and financing decisions[78] Potash Cash Cost of Product Manufactured ("COPM") Per Tonne Potash cash COPM per tonne is a non-IFRS measure used to assess operational performance by excluding depreciation, amortization, and inventory adjustments from total cost of goods sold, focusing on the cash costs directly related to current period production - Definition: Total Potash COGS excluding depreciation, amortization, and inventory/other adjustments, divided by production tonnes[79] - Used to assess operational performance, focusing on day-to-day operations by excluding effects of production from other periods and long-term investment decisions[80] Potash Cash COPM Per Tonne Reconciliation (Millions USD, except per tonne) | Metric | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Total COGS – Potash | 305 | 305 | 1,285 | 1,183 | | Change in inventory | 64 | 18 | 22 | (10) | | Other adjustments | 1 | (7) | (6) | (12) | | COPM | 370 | 316 | 1,301 | 1,161 | | Depreciation and amortization included in COPM | (115) | (119) | (430) | (424) | | Cash COPM | 255 | 197 | 871 | 737 | | Production tonnes (thousands) | 3,641 | 2,784 | 13,790 | 12,595 | | Potash cash COPM per tonne | $70 | $71 | $63 | $59 | Ammonia Controllable Cash COPM Per Tonne Ammonia controllable cash COPM per tonne is a non-IFRS measure designed to evaluate the operational efficiency of ammonia production by excluding depreciation, non-ammonia product costs, and natural gas/steam costs, thereby isolating controllable cash costs - Definition: Total Nitrogen COGS excluding depreciation, non-ammonia product cash COGS, other adjustments, and natural gas/steam costs, divided by net ammonia production tonnes[82] - Used to assess operational performance, focusing on controllable cash costs by excluding effects of production from other periods, natural gas/steam costs, and long-term investment decisions[83] Ammonia Controllable Cash COPM Per Tonne Reconciliation (Millions USD, except per tonne) | Metric | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Total Manufactured COGS – Nitrogen | 725 | 460 | 2,353 | 1,804 | | Total Other COGS – Nitrogen | 170 | 97 | 610 | 461 | | Total COGS – Nitrogen | 895 | 557 | 2,963 | 2,265 | | Depreciation and amortization in COGS | (126) | (127) | (473) | (522) | | Cash COGS for products other than ammonia | (519) | (325) | (1,740) | (1,342) | | Ammonia Total cash COGS before other adjustments | 250 | 105 | 750 | 401 | | Other adjustments | (30) | (6) | (96) | (52) | | Total cash COPM | 220 | 99 | 654 | 349 | | Natural gas and steam costs | (186) | (71) | (515) | (235) | | Controllable cash COPM | 34 | 28 | 139 | 114 | | Production tonnes (net thousands) | 758 | 704 | 2,769 | 2,649 | | Ammonia controllable cash COPM per tonne | $45 | $40 | $50 | $43 | Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial These non-IFRS ratios evaluate the operational efficiency of the Retail segment by comparing adjusted average working capital to adjusted sales over the last four rolling quarters, with the metric excluding Nutrien Financial providing insight into the impact of Nutrien Financial's working capital on the ratio - Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters, with an exclusion for certain acquisitions during the first year[86] - Used to evaluate operational efficiency; a lower or higher percentage indicates increased or decreased efficiency, respectively[87] Retail Adjusted Average Working Capital to Sales (%) | Metric | Rolling four quarters ended Dec 31, 2021 | Rolling four quarters ended Dec 31, 2020 | | :---------------------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Adjusted average working capital to sales (%) | 13% | 15% | | Adjusted average working capital to sales excluding Nutrien Financial (%) | - | 5% | Nutrien Financial Adjusted Net Interest Margin This non-IFRS measure assesses the financial performance of Nutrien Financial by calculating its net interest (revenue less deemed interest expense) as a percentage of average receivables outstanding, and it is used by credit rating agencies and investors - Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial receivables outstanding for the last four rolling quarters[90] - Used by credit rating agencies and other users to evaluate the financial performance of Nutrien Financial[90] Nutrien Financial Adjusted Net Interest Margin (%) | Metric | Rolling four quarters ended Dec 31, 2021 | Rolling four quarters ended Dec 31, 2020 | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Net interest (Millions USD) | 153 | 80 | | Average Nutrien Financial receivables (Millions USD) | 2,316 | 1,502 | | Nutrien Financial adjusted net interest margin (%) | 6.6% | 5.3% | Retail Cash Operating Coverage Ratio This non-IFRS ratio helps understand the costs and underlying economics of Retail operations by comparing operating expenses (excluding depreciation and amortization) to gross margin (excluding depreciation and amortization in COGS) over the last four rolling quarters, assessing operating performance and free cash flow generation - Definition: Retail selling, general and administrative, and other expenses (excluding depreciation and amortization) divided by Retail gross margin (excluding depreciation and amortization in COGS) for the last four rolling quarters[93] - Used to understand costs and economics of Retail operations and assess operating performance and ability to generate free cash flow[94] Retail Cash Operating Coverage Ratio (%) | Metric | Rolling four quarters ended Dec 31, 2021 | Rolling four quarters ended Dec 31, 2020 | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Operating expenses excluding depreciation and amortization (Millions USD) | 2,684 | 2,316 | | Gross margin excluding depreciation and amortization (Millions USD) | 4,612 | 3,746 | | Cash operating coverage ratio (%) | 58% | 62% | Retail Normalized Comparable Store Sales This non-IFRS measure evaluates sales growth by adjusting prior year comparable store sales for fluctuations in commodity prices (potash, nitrogen, phosphate) and foreign exchange rates, providing a normalized view of sales performance - Definition: Prior year comparable store sales adjusted for published potash, nitrogen, and phosphate benchmark prices and foreign exchange rates used in the current year[98] - Used to evaluate sales growth by adjusting for commodity price and foreign exchange rate fluctuations, including locations owned for more than 12 months[99] Retail Normalized Comparable Store Sales (%) | Metric | FY 2021 | FY 2020 | | :---------------------------------------------------------- | :------ | :------ | | Sales from comparable base (Prior period) (Millions USD) | 14,785 | 13,282 | | Sales from comparable base (Current period) (Millions USD) | 17,511 | 13,546 | | Comparable store sales (%) | 22% | 2% | | Prior period normalized for benchmark prices and foreign exchange rates (Millions USD) | 16,350 | 12,784 | | Normalized comparable store sales (%) | 7% | 6% | Appendix C - Other Financial Measures Appendix C outlines supplementary financial measures used by Nutrien, including Retail adjusted EBITDA margin, digital platform sales, sustaining capital expenditures, and adjusted EBITDA per US selling location Supplementary Financial Measures This section defines supplementary financial measures used by Nutrien, which are periodic disclosures of financial performance not classified as IFRS or non-IFRS measures, including Retail adjusted EBITDA margin, Retail digital platform sales, sustaining capital expenditures, and Retail adjusted EBITDA per US selling location - Retail adjusted EBITDA margin: Retail adjusted EBITDA divided by Retail sales for the last four rolling quarters[103] - Retail digital platform sales: Grower and employee sales in North America entered directly into the digital platform[104] - Sustaining capital expenditures: Capital expenditures required to sustain operations at existing levels, including major repairs, maintenance, and plant turnarounds[104] - Retail adjusted EBITDA per US selling location: Total Retail US adjusted EBITDA for the last four rolling quarters (excluding acquisitions) divided by the number of US locations that generated sales (adjusted for acquired locations)[105] Unaudited Condensed Consolidated Financial Statements This section presents Nutrien's unaudited condensed consolidated financial statements, including statements of earnings, comprehensive income, cash flows, changes in shareholders' equity, and balance sheets for the periods ended December 31, 2021 Condensed Consolidated Statements of Earnings The Condensed Consolidated Statements of Earnings show Nutrien's financial performance for the three and twelve months ended December 31, 2021, highlighting significant increases in sales, gross margin, and net earnings compared to the prior year Condensed Consolidated Statements of Earnings (Millions USD) | Metric | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | SALES | 7,267 | 4,052 | 27,712 | 20,908 | | GROSS MARGIN | 3,206 | 1,165 | 9,409 | 5,239 | | EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES | 1,827 | 403 | 4,781 | 902 | | NET EARNINGS | 1,207 | 316 | 3,179 | 459 | | Diluted EPS | 2.11 | 0.55 | 5.52 | 0.81 | Condensed Consolidated Statements of Comprehensive Income The Condensed Consolidated Statements of Comprehensive Income present the total comprehensive income for the periods, including net earnings and other comprehensive income components such as actuarial gains, fair value changes on investments, and currency translation adjustments Condensed Consolidated Statements of Comprehensive Income (Millions USD) | Metric | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | NET EARNINGS | 1,207 | 316 | 3,179 | 459 | | Other comprehensive income | 72 | 280 | 78 | 194 | | COMPREHENSIVE INCOME | 1,279 | 596 | 3,257 | 653 | Condensed Consolidated Statements of Cash Flows The Condensed Consolidated Statements of Cash Flows detail the cash generated from operating, investing, and financing activities, with cash provided by operating activities increasing in 2021, investing activities resulting in a net outflow, and financing activities seeing significant cash usage for debt repayment and share repurchases Condensed Consolidated Statements of Cash Flows (Millions USD) | Metric | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | CASH PROVIDED BY OPERATING ACTIVITIES | 3,637 | 2,778 | 3,886 | 3,323 | | CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES | (465) | 5 | (1,807) | (1,204) | | CASH USED IN FINANCING ACTIVITIES | (3,120) | (1,804) | (3,003) | (1,339) | | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 56 | 989 | (955) | 783 | | CASH AND CASH EQUIVALENTS – END OF PERIOD | 499 | 1,454 | 499 | 1,454 | - Repayment of long-term debt totaled $2,212 million in FY 2021[109] - Repurchase of common shares amounted to $1,035 million in FY 2021[109] Condensed Consolidated Statements of Changes in Shareholders' Equity The Condensed Consolidated Statements of Changes in Shareholders' Equity illustrate the movements in equity components, including net earnings, other comprehensive income, share repurchases, dividends, and share-based compensation, reflecting a net increase in total equity for 2021 Condensed Consolidated Statements of Changes in Shareholders' Equity (Millions USD) | Metric | Dec 31, 2021 | Dec 31, 2020 | | :------------------------------------------ | :----------- | :----------- | | BALANCE – BEGINNING OF PERIOD | 22,403 | 22,907 | | Net earnings | 3,179 | 459 | | Other comprehensive (loss) income | 78 | 194 | | Shares repurchased | (1,105) | (160) | | Dividends declared | (1,046) | (1,029) | | Effect of share-based compensation including issuance of common shares | 217 | 19 | | BALANCE – END OF PERIOD | 23,699 | 22,403 | Condensed Consolidated Balance Sheets The Condensed Consolidated Balance Sheets provide a snapshot of Nutrien's financial position at December 31, 2021, showing an increase in total assets and total shareholders' equity, alongside changes in current and non-current liabilities, notably a reduction in long-term debt Condensed Consolidated Balance Sheets (Millions USD) | Metric | Dec 31, 2021 | Dec 31, 2020 | | :------------------------------------------ | :----------- | :----------- | | TOTAL ASSETS | 49,954 | 47,192 | | Current assets | 13,846 | 11,470 | | Non-current assets | 35,288 | 35,750 | | TOTAL LIABILITIES | 26,255 | 24,789 | | Current liabilities | 12,443 | 8,480 | | Non-current liabilities | 13,817 | 16,368 | | TOTAL SHAREHOLDERS' EQUITY | 23,699 | 22,403 | - Long-term debt decreased from $10,047 million in 2020 to $7,521 million in 2021[112] - Receivables increased from $3,626 million in 2020 to $5,366 million in 2021[112] - Inventories increased from $4,930 million in 2020 to $6,328 million in 2021[112] Notes to the Condensed Consolidated Financial Statements These notes provide essential context to Nutrien's financial statements, detailing the basis of presentation, segment information, other expenses, and share capital activities, including repurchase programs and dividend declarations Basis of Presentation Nutrien's unaudited condensed consolidated financial statements are prepared in accordance with IFRS and are consistent with the accounting policies used in the 2020 annual consolidated financial statements, including all necessary adjustments for fair presentation but not all disclosures typically found in annual statements - Financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS")[115] - Accounting policies and methods are materially consistent with those used in the 2020 annual consolidated financial statements[115] - Certain immaterial 2020 figures have been reclassified in the condensed consolidated statements of changes in shareholders' equity and condensed consolidated balance sheets[116] Segment Information Nutrien operates through four reportable segments: Retail, Potash, Nitrogen, and Phosphate, and this section provides detailed financial breakdowns for each segment, including sales, gross margin, and adjusted EBITDA, along with intersegment eliminations, for both quarterly and annual periods - Company has four reportable operating segments: Nutrien Ag Solutions ("Retail"), Potash, Nitrogen, and Phosphate[117] - Retail segment distributes crop nutrients, crop protection products, seed, merchandise, and provides services to growers[117] Segment Sales and Adjusted EBITDA (FY 2021, Millions USD) | Segment | Sales – total | Adjusted EBITDA | | :---------------- | :------------ | :-------------- | | Retail | 17,734 | 1,939 | | Potash | 4,407 | 2,736 | | Nitrogen | 5,137 | 2,308 | | Phosphate | 2,046 | 540 | | Corporate and Others | - | (308) | | Eliminations | (1,612) | (89) | | Consolidated | 27,712 | 7,126 | Other Expenses (Income) This note details the components of other expenses (income), which include integration and restructuring costs, foreign exchange losses, earnings of equity-accounted investees, bad debt expense, COVID-19 related expenses, and the net gain from the MOPCO divestment in 2020 Other Expenses (Income) (Millions USD) | Metric | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Integration and restructuring related (recovery) costs | (4) | 22 | 43 | 60 | | Foreign exchange loss, net of related derivatives | 38 | 17 | 42 | 18 | | Earnings of equity-accounted investees | (46) | (27) | (89) | (73) | | Bad debt expense (recovery) | 4 | (3) | 26 | 6 | | COVID-19 related expenses | 11 | 18 | 45 | 48 | | Loss on disposal of business | - | - | - | 6 | | Net gain on disposal of investment in MOPCO | - | (250) | - | (250) | | Cloud computing transition adjustment | - | - | 36 | - | | Other expenses | 106 | 34 | 209 | 183 | | Total Other Expenses (Income) | 109 | (189) | 312 | (2) | - In Q4 2020, a pre-tax gain of $250 million was recorded from the MOPCO divestment[123] Share Capital This note outlines Nutrien's share repurchase programs and dividend declarations, with the company repurchasing a significant number of common shares in 2021 and approving an increased quarterly dividend and a new NCIB for 2022 Share Repurchase Programs | Metric | Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | | :--------------------