Capitalization
Debt
At the end of 2007, PotashCorp had total debt of $1.43 billion. About 94 percent of this pertained to long-term debt.
Equity
PotashCorp had 316.4 million common shares issued and outstanding at December 31, 2007. Book value of shareholders' equity totaled $6.02 billion.
Capital Structure |
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| ($ million, except as noted) | 2003 | 2004 | 2005 | 2006 | 2007 |
| Short-term debt obligations | 176.2 | 93.5 | 252.2 | 157.9 | 90.0 |
| Current portion of long-term debt obligations | 1.3 | 10.3 | 1.2 | 400.4 | 0.2 |
| Long-term debt obligations | 1,268.6 | 1,258.6 | 1,257.6 | 1,357.1 | 1,358.3 |
| Deferred debt costs and swap gains included in long-term debt | -- | -- | -- | -- | (18.9) |
| Total debt | 1,446.1 | 1,362.4 | 1,511.0 | 1,915.4 | 1,429.6 |
| Shareholders' equity | 1,973.8 | 2,385.6 | 2,132.5 | 2,780.3 | 6,018.7 |
| Total debt to capital (%) | 42 | 36 | 41 | 41 | 19 |
| Fixed rate debt obligations as percentage of total debt obligations | 87 | 92 | 83 | 91 | 93 |
| Common shares outstanding (#) | 318,673,296 | 331,891,809 | 310,781,376 | 314,403,147 | 316,411,209 |
| Stock options outstanding (#) | 32,628,066 | 19,202,190 | 15,245,268 | 14,305,644 | 14,006,984 |
| Dividend payout ratio (%) | 97 | 20 | 12 | 10 | 10 |
| Source: PotashCorp | |||||
Assets and Liabilities
At the end of 2007, the book value of PotashCorp's assets was $9.72 billion. Property, plant and equipment accounted for $3.89 billion of this total and current assets (primarily cash and cash equivalents, inventories and accounts receivable) totaled $1.81 billion. The company's investments in offshore potash companies totaled $3.53 billion and accounted for the bulk of other assets.
PotashCorp's Consolidated Financial Position |
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| ($ million) | 2003 | 2004 | 2005 | 2006 | 2007 |
| Current assets | 734 | 1,244 | 1,111 | 1,310 | 1,811 |
| Property, plant and equipment | 3,108 | 3,099 | 3,263 | 3,526 | 3,887 |
| Other assets | 725 | 784 | 984 | 1,381 | 4,019 |
| Total Assets | 4,567 | 5,127 | 5,358 | 6,217 | 9,717 |
| Current liabilities | 558 | 704 | 1,096 | 1,104 | 1,002 |
| Long-term debt | 1,269 | 1,259 | 1,258 | 1,357 | 1,339 |
| Future income tax liability | 484 | 499 | 543 | 632 | 988 |
| Accrued pension and post-retirement benefits | 195 | 193 | 214 | 220 | 245 |
| All other liabilities | 88 | 86 | 114 | 124 | 124 |
| Total Liabilities | 2,594 | 2,741 | 3,225 | 3,437 | 3,698 |
| Share capital | 1,246 | 1,408 | 1,379 | 1,432 | 1,461 |
| Contributed surplus | 265 | 276 | 36 | 62 | 99 |
| Accumulated other comprehensive income | -- | -- | -- | -- | 2,179 |
| Retained earnings | 463 | 702 | 717 | 1,286 | 2,280 |
| Shareholders' Equity | 1,974 | 2,386 | 2,132 | 2,780 | 6,019 |
| Source: PotashCorp | |||||
Total liabilities were $3.70 billion. Of this amount, current liabilities (short-term debt, accounts payable and accrued charges, and current portion of long-term debt) totaled $1.00 billion. Other major items were long-term debt of $1.34 billion, future income tax liability of $988 million and accrued pension and other post-retirement benefits of $245 million.
Book value of shareholders' equity at the end of 2007 was $6.02 billion. The increase from 2006 was mainly the result of new accounting standards implemented in 2007 that required the company to record the net unrealized gains on available-for-sale securities, including its investments in certain offshore potash companies, and cash flow hedges in a separate component of equity. The increase in value of the company's investments in ICL and Sinofert included in equity in 2007 was $2.13 billion. The remainder of the increase in the book value of shareholders' equity pertained primarily to 2007 net income of $1.10 billion.