(in millions of US dollars except share and per-share amounts)
19. Segment Information
The company has three reportable business segments: potash, nitrogen and phosphate. These business segments are differentiated by the chemical nutrient contained in the product that each produces. Inter-segment sales are made under terms that approximate market value. The accounting policies of the segments are the same as those described in Note 2.
| 2007 | ||||||||||
| Potash | Nitrogen | Phosphate | All others | Consolidated | ||||||
| Sales | $ | 1,797.2 | $ | 1,799.9 | $ | 1,637.1 | $ | – | $ | 5,234.2 |
| Freight | 178.1 | 55.6 | 112.4 | – | 346.1 | |||||
| Transportation and distribution | 39.1 | 51.6 | 33.4 | – | 124.1 | |||||
| Net sales – third party | 1,580.0 | 1,692.7 | 1,491.3 | – | ||||||
| Cost of goods sold | 667.7 | 1,156.6 | 1,058.5 | – | 2,882.8 | |||||
| Gross margin | 912.3 | 536.1 | 432.8 | – | 1,881.2 | |||||
| Inter-segment sales | – | 112.3 | 1.9 | – | – | |||||
| Depreciation and amortization | 71.7 | 88.2 | 121.1 | 10.3 | 291.3 | |||||
| Goodwill | – | 96.6 | – | 0.4 | 97.0 | |||||
| Assets | 1,809.6 | 1,646.4 | 1,955.4 | 4,305.2 | 9,716.6 | |||||
| Additions to property, plant and equipment |
338.2 | 89.7 | 176.2 | 3.1 | 607.2 | |||||
| 2006 | ||||||||||
| Potash | Nitrogen | Phosphate | All others | Consolidated | ||||||
| Sales | $ | 1,227.5 | $ | 1,284.1 | $ | 1,255.1 | $ | – | $ | 3,766.7 |
| Freight | 130.5 | 36.8 | 88.5 | – | 255.8 | |||||
| Transportation and distribution | 38.8 | 52.2 | 43.1 | – | 134.1 | |||||
| Net sales – third party | 1,058.2 | 1,195.1 | 1,123.5 | – | ||||||
| Cost of goods sold | 497.1 | 879.5 | 998.2 | – | 2,374.8 | |||||
| Gross margin | 561.1 | 315.6 | 125.3 | – | 1,002.0 | |||||
| Inter-segment sales | 5.7 | 112.4 | 7.2 | – | – | |||||
| Depreciation and amortization | 58.3 | 77.6 | 94.6 | 11.9 | 242.4 | |||||
| Goodwill | – | 96.6 | – | 0.4 | 97.0 | |||||
| Assets | 1,478.0 | 1,480.7 | 1,753.9 | 1,504.4 | 6,217.0 | |||||
| Additions to property, plant and equipment |
293.2 | 75.5 | 119.7 | 20.2 | 508.6 | |||||
| 2005 | ||||||||||
| Potash | Nitrogen | Phosphate | All others | Consolidated | ||||||
| Sales | $ | 1,341.1 | $ | 1,368.8 | $ | 1,137.3 | $ | – | $ | 3,847.2 |
| Freight | 129.7 | 39.9 | 80.1 | – | 249.7 | |||||
| Transportation and distribution | 34.5 | 49.5 | 37.9 | – | 121.9 | |||||
| Net sales – third party | 1,176.9 | 1,279.4 | 1,019.3 | – | ||||||
| Cost of goods sold | 469.5 | 960.7 | 920.4 | – | 2,350.6 | |||||
| Gross margin | 707.4 | 318.7 | 98.9 | – | 1,125.0 | |||||
| Inter-segment sales | 5.8 | 100.7 | 14.0 | – | – | |||||
| Depreciation and amortization | 64.5 | 72.0 | 95.6 | 10.3 | 242.4 | |||||
| Goodwill | – | 96.6 | – | 0.4 | 97.0 | |||||
| Assets | 1,236.8 | 1,526.5 | 1,723.0 | 871.6 | 5,357.9 | |||||
| Additions to property, plant and equipment |
165.5 | 99.3 | 109.5 | 8.4 | 382.7 | |||||
As described in Note 1, PhosChem and Canpotex execute offshore marketing, sales and distribution functions for certain of the company's products. Financial information by geographic area is summarized in the following table:
| Country of Origin | ||||||||||
| Canada | United States | Trinidad | Other | Consolidated | ||||||
| 2007 | ||||||||||
| Sales to customers outside the company | ||||||||||
Canada |
$ | 88.0 | $ | 127.0 | $ | – | $ | – | $ | 215.0 |
United States |
764.7 | 2,065.6 | 661.6 | – | 3,491.9 | |||||
PhosChem (PhosChem's 2007 sales were made to: India 51%, China 6%, other Asian countries 8%, Latin America 31%, other countries 4%) |
– | 264.6 | – | – | 264.6 | |||||
Canpotex (Canpotex's 2007 sales were made to: China 26%, Brazil 21%, India 10%, other Asian countries 33%, other countries 10%) |
782.7 | – | – | – | 782.7 | |||||
Mexico |
23.1 | 81.8 | – | – | 104.9 | Brazil |
70.3 | – | – | 23.1 | 93.4 | Colombia |
26.2 | 10.4 | 46.8 | – | 83.4 | Other Latin America |
42.2 | 21.5 | 63.1 | – | 126.8 |
Other |
– | 35.5 | 36.0 | – | 71.5 | |||||
| $ | 1,797.2 | $ | 2,606.4 | $ | 807.5 | $ | 23.1 | $ | 5,234.2 | |
| Operating income | $ | 537.8 | $ | 652.5 | $ | 296.9 | $ | 101.3 | $ | 1,588.5 |
| Capital assets and goodwill | $ | 1,504.3 | $ | 1,848.6 | $ | 587.2 | $ | 44.3 | $ | 3,984.4 |
| Country of Origin | ||||||||||
| Canada | United States | Trinidad | Other | Consolidated | ||||||
| 2006 | ||||||||||
| Sales to customers outside the company | ||||||||||
Canada |
$ | 65.7 | $ | 92.0 | $ | – | $ | – | $ | 157.7 |
United States |
557.5 | 1,454.9 | 530.2 | – | 2,542.6 | |||||
PhosChem (PhosChem's 2006 sales were made to: India 40%, China 19%, other Asian countries 14%, Latin America 22%, other countries 5%) |
– | 232.2 | – | – | 232.2 | |||||
Canpotex (Canpotex's 2006 sales were made to: China 19%, India 10%, other Asian countries 41%, Brazil 15%, other countries 15%) |
467.1 | – | – | – | 467.1 | |||||
Mexico |
7.3 | 72.1 | 5.1 | – | 84.5 | |||||
Brazil |
68.7 | – | – | 16.2 | 84.9 | |||||
Colombia |
20.2 | 7.5 | 32.3 | – | 60.0 | |||||
Other Latin America |
41.0 | 19.2 | 38.3 | – | 98.5 | |||||
Other |
– | 37.9 | 1.3 | – | 39.2 | |||||
| $ | 1,227.5 | $ | 1,915.8 | $ | 607.2 | $ | 16.2 | $ | 3,766.7 | |
| Operating income | $ | 426.9 | $ | 216.4 | $ | 171.8 | $ | 60.4 | $ | 875.5 |
| Capital assets and goodwill | $ | 1,207.7 | $ | 1,761.3 | $ | 610.4 | $ | 43.4 | $ | 3,622.8 |
| Country of Origin | ||||||||||
| Canada | United States | Trinidad | Other | Consolidated | ||||||
| 2005 | ||||||||||
| Sales to customers outside the company | ||||||||||
Canada |
$ | 69.3 | $ | 105.9 | $ | – | $ | – | $ | 175.2 |
United States |
576.6 | 1,470.9 | 545.5 | – | 2,593.0 | |||||
PhosChem (PhosChem's 2005 sales were made to: India 29%, China 29%, other Asian countries 22%, Latin America 14%, other countries 6%) |
– | 166.7 | – | – | 166.7 | |||||
Canpotex (Canpotex's 2005 sales were made to: China 29%, India 11%, other Asian countries 33%, Brazil 13%, other countries 14%) |
577.1 | – | – | – | 577.1 | |||||
Mexico |
10.5 | 64.5 | – | – | 75.0 | |||||
Brazil |
60.3 | 3.7 | – | 23.7 | 87.7 | |||||
Colombia |
19.3 | 9.3 | 28.7 | – | 57.3 | |||||
Other Latin America |
28.0 | 5.7 | 31.6 | – | 65.3 | |||||
Other |
– | 23.6 | 26.3 | – | 49.9 | |||||
| $ | 1,341.1 | $ | 1,850.3 | $ | 632.1 | $ | 23.7 | $ | 3,847.2 | |
| Operating income | $ | 464.1 | $ | 170.2 | $ | 199.3 | $ | 59.0 | $ | 892.6 |
| Capital assets and goodwill | $ | 954.6 | $ | 1,751.1 | $ | 612.4 | $ | 41.7 | $ | 3,359.8 |